HomeMy WebLinkAbout2009-12-01; Housing & Redevelopment Commission; 419; Professional Services AgreementHOUSING AND REDEVELOPMENT COMMISSION ^ 4
AGENDA BILL
AB# 419
MTG. 12/01/09
DEPT. HRED
PROFESSIONAL SERVICES AGREEMENT
FOR FYPI I IQIX/F MAMAf^FMFMT AC5FMTr\Jr\ CA^LUolVC IVIr\lNAOCIVICIN I rtljCIN I
SERVICES FOR THE TYLER COURT
SENIOR APARTMENTS.
DEPT. HEACfQ^^TW
CITY ATTY. (^
CITY MGR.
478
RECOMMENDED ACTION:
That the Housing and Redevelopment Commission ADOPT Resolution No.
APPROVING a Professional Services Agreement for Exclusive Management Agent Services
with Interfaith Housing Assistance Corporation for the Tyler Court Senior Apartments.
ITEM EXPLANATION
On September 30, 1999, the Carlsbad Redevelopment Agency purchased the 75-unit Tyler
Court Senior Apartment Complex located at 3363 Tyler Street. The purchase of the property
resulted in the Redevelopment Agency providing permanent affordable housing for very low
and extremely low income senior citizens in Carlsbad.
Upon assuming ownership, the Housing and Redevelopment Commission authorized staff to
enter into a Professional Services Agreement with the Interfaith Housing Assistance
Corporation (Interfaith) for the day-to-day management and maintenance of Tyler Court. For the
past ten years, Interfaith has fulfilled their contractual obligations, and staff has been satisfied
with their overall performance. The City's current contract with Interfaith has no additional
administrative extensions permitted without further action by the Commission. Based upon a
satisfactory performance by the current management company and the Agency's desire to limit
disruption of that management thereby maintaining consistency for the residents, staff is
recommending that the Housing and Redevelopment Commission authorize the Agency's
Executive Director to execute a new Professional Services Agreement for Exclusive
Management Agent Services with Interfaith for said management services. The Professional
Services Agreement will be for an initial period of two years, and allows for three additional one-
year extensions of the agreement by the City Manager.
FISCAL IMPACT
The total costs associated with the day-to-day management and maintenance for the Tyler
Court Senior Apartments is estimated to be approximately $368,000 for fiscal year 2009-10.
The funds to operate the complex will be provided through rent revenues generated by the
renting of the 75 senior units on a monthly basis. Based on current projections, it is estimated
that rent revenues generated by the project will be approximately $490,000 per year. Therefore,
DEPARTMENT CONTACT: Debbie Fountain (760)434-2935 Debbie.Fountain@carlsbadca.gov
FOR CITY CLERKS USE ONL Y.
COMMISSION ACTION: APPROVED EJ
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
Page 2
with an operating surplus of $122,000, it is unlikely that any additional City or Redevelopment
Agency funding will be required for operations of the subject property during the term of the
agreement. No additional funds have been required from the City or Redevelopment Agency to
manage, operate and/or maintain the Tyler Senior Court Apartments since its purchase in 1999.
ENVIRONMENTAL IMPACT:
As an agreement to provide for services to manage an existing apartment complex owned by
the Redevelopment Agency, this is an administrative activity of the government that does not
result in direct or indirect physical changes in the environment. Therefore, this action is not a
"project" subject to the California Environmental Quality Act (CEQA). Section 15378(b)(5) of
the CEQA Guidelines excludes from environmental review "organizational or administrative
activities of governments that will not result in direct or indirect physical changes in the
environment."
EXHIBITS
1. Housing and Redevelopment Commission Resolution No. 478 , authorizing the
Redevelopment Agency Executive Director to execute a Professional Services Agreement for
Exclusive Management Agent Services with Interfaith Housing Assistance Corporation for the
Tyler Court Senior Apartments.
2. Professional Services Agreement between Interfaith Housing Foundation and the Carlsbad
Redevelopment Agency for Exclusive Management Agent Services for the Tyler Court Senior
Apartments.
1 RESOLUTION NO. 478
2 A RESOLUTION OF THE CITY OF CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION APPROVING A
3 PROFESSIONAL SERVICES AGREEMENT FOR EXCLUSIVE
MANAGEMENT AGENT SERVICES WITH INTERFAITH
HOUSING ASSISTANCE CORPORATION FOR THE TYLER
5 COURT SENIOR APARTMENTS.
6..
WHEREAS, the City of Carlsbad has a significant need for affordable housing
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throughout the community as set forth in both its Housing Element of the General Plan and the
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City's federally-required Consolidated Plan; and
WHEREAS, on September 30, 1999, the Redevelopment Agency of the City of Carlsbad
purchased the Tyler Court Senior Apartment Complex for the purpose of providing permanent
12 affordable housing for very low income senior citizens in Carlsbad; and
13 WHEREAS, the Housing and Redevelopment Commission seeks to enter into a
Professional Services Agreement with Interfaith Housing Assistance Corporation for exclusive
management agent services for the Tyler Court Senior Apartments.
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NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and
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Redevelopment Commission of the City of Carlsbad, California, as follows:
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1. The above recitations are true and correct.19
20 2. The Housing and Redevelopment Commission hereby authorizes the
21 Redevelopment Agency Executive Director to execute a Professional Services
22 Agreement for Exclusive Management Agent Services with Interfaith Housing
9-3 Assistance Corporation for the Tyler Court Senior Apartments for an initial
period of two years, substantially in the form presented to the Commission and
or
subject to prior approval by the City Attorney.
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3. The Housing and Redevelopment Commission hereby authorizes the
Redevelopment Agency Executive Director to extend said Professional Services
Agreement with Interfaith Housing Assistance Corporation for three (3)
additional one (1) year periods or parts thereof, as appropriate and based upon a
review of satisfactory performance for past management services and the City's
needs and subject to the approval by the City Attorney.
PASSED, APPROVED, AND ADOPTED at a special meeting of the Housing
and Redevelopment Commission of the City of Carlsbad, California, held on the l?t day
of December, 2009, by the following vote, to wit:
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AYES: Commission Members Lewis, Kulcbin, Hall Packard & Blackburn.
13 NOES: None.
14 ABSENT: None.
is"
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' CLAUDE A. LEWIS, CHAIRPERSON
18 ATTEST:
19
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21 LISA HILDABRAND, SECRETARY
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EXHIBIT 2
AGREEMENT FOR EXCLUSIVE MANAGEMENT AGENT SERVICES
Interfaith Housing Assistance Corporation
THIS AGREEMENT is made and entered into as of the '3*° day of
CUL^W)-^- , 2009, by and between the CARLSBAD REDEVELOPMENT
AGENCY, a Community Redevelopment Agency, ("Agency"), and INTERFAITH
HOUSING ASSISTANCE CORPORATION, a California Nonprofit Benefit Corporation
("Agent).
RECITALS
A. City requires exclusive management agent services for the management
and day-to-day operation of the Tyler Court Senior Apartments located at 3363 Tyler
Street, Carlsbad, CA 92008.
B. Agent has the necessary experience in providing exclusive management
agent services.
C. Selection of Agent is expected to achieve the desired results in an
expedited fashion.
D. Agent has submitted a proposal to City and has affirmed its willingness
and ability to perform such work, and said proposal has been incorporated into this
Agreement.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Agent agree as follows:
1. SCOPE OF WORK
City retains Agent to perform, and Agent agrees to render, the management services
(the "Services") set forth within this Agreement and according to the Management Plan
set forth in attached Exhibit "A", which is incorporated by this
reference in accordance with this Agreement's terms and conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Agent will exercise the reasonable professional care and
skill customarily exercised by reputable members of Agent's profession practicing in the
Metropolitan Southern California Area, and will use reasonable diligence and best
judgment while exercising its professional skill and expertise.
3. TERM
The term of this Agreement will be effective for a period of two (2) years, effective from
October 1, 2009. The City Manager may amend the Agreement to extend it for three (3)
s
additional one (1) year periods or parts thereof in an amount not to exceed the terms
and conditions stated in Section 5 below. Extensions will be based upon a satisfactory
review of Agent's performance, City needs, and appropriation of funds by the City
Council as necessary. The parties will prepare a written amendment indicating the
effective date and length of the extended Agreement.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
5. COMPENSATION
The sole compensation which the Agent shall be entitled to receive for all services
performed under this Agreement shall be a fee computed and payable monthly on the
first day of each month as follows:
(a) During the first nine (9) months of the term of this Agreement, (through
June 30, 2010) the Agent's monthly fee shall be the sum of Forty Two Dollars, Forty
Two Cents ($42.42) per unit (including any free unit for managerial staff).
(b) During each subsequent year of the Agreement, the Agent's monthly fee
shall be increased by three (3) percent and added to the previous year's dollar per unit
per month fee (including any free unit for managerial staff).
6. STATUS OF AGENT
Agent will perform the Services in Agent's own way as an independent agent and in
pursuit of Agent's independent calling, and not as an employee of City. Agent will be
under control of City only as to the result to be accomplished, but will consult with City
as necessary. The persons used by Agent to provide services under this Agreement will
not be considered employees of City for any purposes.
The payment made to Agent pursuant to the Agreement will be the full and complete
compensation to which Agent is entitled. City will not make any federal or state tax
withholdings on behalf of Agent or its agents, employees or subcontractors. City will not
be required to pay any workers' compensation insurance or unemployment contributions
on behalf of Agent or its employees or subcontractors. Agent agrees to indemnify City
within thirty (30) days for any tax, retirement contribution, social security, overtime
payment, unemployment payment or workers' compensation payment which City may
be required to make on behalf of Agent or any agent, employee, or subcontractor of
Agent for work done under this Agreement. At the City's election, City may deduct the
indemnification amount from any balance owing to Agent.
7. SUBCONTRACTING
Agent will not subcontract any portion of the Services without prior written approval of
City. If Agent subcontracts any of the Services, Agent will be fully responsible to City for
the acts and omissions of Agent's subcontractor and of the persons either directly or
indirectly employed by the subcontractor, as Agent is for the acts and omissions of
persons directly employed by Agent. Nothing contained in this Agreement will create
any contractual relationship between any subcontractor of Agent and Agency. Agent will
be responsible for payment of subcontractors. Agent will bind every subcontractor and
every subcontractor of a subcontractor by the terms of this Agreement applicable to
Agent's work unless specifically noted to the contrary in the subcontract and approved
in writing by Agency.
8. OTHER AGENTS
The Agency reserves the right to employ other Agents in connection with the Services.
9. INDEMNIFICATION
(a) Agent agrees to indemnify and hold harmless the Agency and its officers,
officials, employees and volunteers from and against all claims, damages, losses and
expenses including attorneys fees arising out of the performance of the work described
herein caused in whole or in part by any willful misconduct or negligent act or omission
of the Agent, any subcontractor, anyone directly or indirectly employed by any of them
or anyone for whose acts any of them may be liable.
The parties expressly agree that any payment, attorney's fee, costs or expense Agency
incurs or makes to or on behalf of an injured employee under the Agency's self-
administered workers' compensation is included as a loss, expense or cost for the
purposes of this section, and that this section will survive the expiration or early
termination of this Agreement.
(b) The Carlsbad Redevelopment Agency agrees to maintain liability insurance
coverage on the property. Agent shall not be responsible for the type, amount or
sufficiency of insurance coverage on the Apartments.
10 . INSURANCE
Agent will obtain and maintain for the duration of the Agreement and any and all
amendments, insurance against claims for injuries to persons or damage to property
which may arise out of or in connection with performance of the services by Agent or
Agent's agents, representatives, employees or subcontractors. The insurance will be
obtained from an insurance carrier admitted and authorized to do business in the State
of California. The insurance carrier is required to have a current Best's Key Rating of not
less than "A-:V".
10.1 Coveraqes and Limits.
Agent will maintain the types of coverages and minimum limits indicated below, unless
City Attorney or City Manager approves a lower amount. These minimum amounts of
coverage will not constitute any limitations or cap on Agent's indemnification obligations
under this Agreement. Agency, its officers, agents and employees make no
representation that the limits of the insurance specified to be carried by Agent pursuant
to this Agreement are adequate to protect Agent. If Agent believes that any required
insurance coverage is inadequate, Agent will obtain such additional insurance
coverage, as Agent deems adequate, at Agent's sole expense.
10.1.1 Commercial General Liabilitv Insurance. $1,000,000 combined
single-limit per occurrence for bodily injury, personal injury and property damage. If the
submitted policies contain aggregate limits, general aggregate limits will apply
separately to the work under this Agreement or the general aggregate will be twice the
required per occurrence limit.
10.1.2 Automobile Liability (if the use of an automobile is involved for
Agent's work for Agency). $1,000,000 combined single-limit per accident for bodily injury
and property damage.
10.1.3 Workers' Compensation and Employer's Liabilitv. Workers'
Compensation limits as required by the California Labor Code and Employer's Liability
limits of $1,000,000 per accident for bodily injury. Workers' Compensation and
Employer's Liability insurance will not be required if Agent has no employees and
provides, to Agency's satisfaction, a declaration stating this.
10.2. Additional Provisions. Agent will ensure that the policies of insurance
required under this Agreement contain, or are endorsed to contain, the following
provisions:
10.2.1 The Agency will be named as an additional insured on General
Liability. Likewise, Agent will be named as an additional insured on the
Agency's General Liability policy.
10.2.2 Agent will obtain occurrence coverage, excluding Professional
Liability, which will be written as claims-made coverage.
10.2.3 This insurance will be in force during the life of the Agreement and
any extensions of it and will not be canceled without thirty (30) days prior written
notice to Agency sent by certified mail pursuant to the Notice provisions of this
Agreement.
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10.3 Providinq Certificates of Insurance and Endorsements. Prior to Agency's
execution of this Agreement, Agent will furnish certificates of insurance and
endorsements to Agency.
10.4 Failure to Maintain Coverage. If Agent fails to maintain any of these
insurance coverages, then Agency will have the option to declare Agent in breach, or
may purchase replacement insurance or pay the premiums that are due on existing
policies in order to maintain the required coverages. Agent is responsible for any
payments made by Agency to obtain or maintain insurance and Agency may collect
these payments from Agent or deduct the amount paid from any sums due Agent under
this Agreement.
10.5 Submission of Insurance Policies. Agency reserves the right to require, at
anytime, complete and certified copies of any or all required insurance policies and
endorsements.
10.6 Crime Bond. The Agent shall provide a Crime Bond in the amount of
$50,000 naming the Agency as co-obligee.
11. BUSINESS LICENSE
Agent will obtain and maintain a City of Carlsbad Business License for the term of the
Agreement, as may be amended from time-to-time.
12. ACCOUNTING RECORDS
Agent will maintain complete and accurate records with respect to costs incurred under
this Agreement. All records will be clearly identifiable. Agent will allow a representative
of Agency during normal business hours to examine, audit, and make transcripts or
copies of records and any other documents created pursuant to this Agreement. Agent
will allow inspection of all work, data, documents, proceedings, and activities related to
the Agreement for a period of three (3) years from the date of final payment under this
Agreement.
13. OWNERSHIP OF DOCUMENTS
All work product produced by Agent or its agents, employees, and subcontractors
pursuant to this Agreement is the property of Agency. In the event this Agreement is
terminated, all work product produced by Agent or its agents, employees and
subcontractors pursuant to this Agreement will be delivered at once to Agency. Agent
will have the right to make one (1) copy of the work product for Agent's records.
14. COPYRIGHTS
Agent agrees that all copyrights that arise from the services will be vested in Agency
and Agent relinquishes all claims to the copyrights in favor of Agency.
15. NOTICES
The name of the persons who are authorized to give written notices or to receive written
notice on behalf of Agency and on behalf of Agent under this Agreement.
For Agencv: For Agent:
Debbie Fountain Doris Snashall
Director of Housing and Redevelopment Director of Propertv Management
City of Carlsbad 7956 Lester Avenue
2965 Roosevelt Street, Suite B Lemon Grove, CA 91945
Carlsbad, CA 92008 Phone No. 619.231.0288
Phone No. 760.434.2815
Each party will notify the other immediately of any changes of address that would
require any notice or delivery to be directed to another address.
16. CONFLICT OF INTEREST
Agency will evaluate Agent's duties pursuant to this Agreement to determine whether
disclosure under the Political Reform Act and Agency's Conflict of Interest Code is
required of Agent or any of Agent's employees, agents, or subcontractors. Should it be
determined that disclosure is required, Agent or Agent's affected employees, agents, or
subcontractors will complete and file with the Agency Clerk those schedules specified
by Agency and contained in the Statement of Economic Interests Form 700.
Agent, for Agent and on behalf of Agent's agents, employees, subcontractors and
consultants warrants that by execution of this Agreement, that they have no interest,
present or contemplated, in the projects affected by this Agreement. Agent further
warrants that neither Agent, nor Agent's agents, employees, subcontractors and
consultants have any ancillary real property, business interests or income that will be
affected by this Agreement or, alternatively, that Agent will file with the Agency an
affidavit disclosing this interest.
17. GENERAL COMPLIANCE WITH LAWS
Agent will keep fully informed of federal, state and local laws and ordinances and
regulations which in-any manner affect those employed by Agent, or in any way affect
the performance of the Services by Agent. Agent will at all times observe and comply
with these laws, ordinances, and regulations and will be responsible for the compliance
of Agent's services with all applicable laws, ordinances and regulations.
Agent will be aware of the requirements of the Immigration Reform and Control Act of
1986 and will comply with those requirements, including, but not limited to, verifying the
/o
eligibility for employment of all agents, employees, subcontractors and consultants that
the services required by this Agreement.
18. DISCRIMINATION AND HARASSMENT PROHIBITED
Agent will comply with all applicable local, state and federal laws and regulations
prohibiting discrimination and harassment.
19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance of the Services the following
procedure will be used to resolve any questions of fact or interpretation not otherwise
settled by agreement between the parties. Representatives of Agent or Agency will
reduce such questions, and their respective views, to writing. A copy of such
documented dispute will be forwarded to both parties involved along with recommended
methods of resolution, which would be of benefit to both parties. The representative
receiving the letter will reply to the letter along with a recommended method of
resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory
to the aggrieved party, a letter outlining the disputes will be forwarded to the Agency
Manager. The City Manager will consider the facts and solutions recommended by each
party and may then opt to direct a solution to the problem. In such cases, the action of
the City Manager will be binding upon the parties involved, although nothing in this
procedure will prohibit the parties from seeking remedies available to them at law.
20. TERMINATION
In the event of the Agent's failure to prosecute, deliver, or perform the Services, Agency
may terminate this Agreement for nonperformance by notifying Agent by certified mail of
the termination. If Agency decides to abandon or indefinitely postpone the work or
services contemplated by this Agreement, Agency may terminate this Agreement upon
written notice to Agent. Upon notification of termination, Agent has five (5) business
days to deliver any documents owned by Agency and all work in progress to Agency
address contained in this Agreement. Agency will make a determination of fact based
upon the work product delivered to Agency and of the percentage of work that Agent
has performed which is usable and of worth to Agency in having the Agreement
completed. Based upon that finding Agency will determine the final payment of the
Agreement.
Either party upon tendering thirty (30) days written notice to the other party may
terminate this Agreement. In this event and upon request of Agency, Agent will
assemble the work product and put it in order for proper filing and closing and deliver it
to Agency. Agent will be paid for work performed to the termination date; however, the
total will not exceed the lump sum fee payable under this Agreement. Agency will make
the final determination as to the portions of tasks completed and the compensation to
be made.
21. COVENANTS AGAINST CONTINGENT FEES
Agent warrants that Agent has not employed or retained any company or person, other
than a bona fide employee working for Agent, to solicit or secure this Agreement, and
that Agent has not paid or agreed to pay any company or person, other than a bona fide
employee, any fee, commission, percentage, brokerage fee, gift, or any other
consideration contingent upon, or resulting from, the award or making of this
Agreement. For breach or violation of this warranty, Agency will have the right to annul
this Agreement without liability, or, in its discretion, to deduct from the Agreement price
or consideration, or otherwise recover, the full amount of the fee, commission,
percentage, brokerage fees, gift, or contingent fee.
22. CLAIMS AND LAWSUITS
By signing this Agreement, Agent agrees that any Agreement claim submitted to
Agency must be asserted as part of the Agreement process as set forth in this
Agreement and not in anticipation of litigation or in conjunction with litigation. Agent
acknowledges that if a false claim is submitted to Agency, it may be considered fraud
and Agent may be subject to criminal prosecution. Agent acknowledges that California
Government Code sections 12650 et seq., the False Claims Act applies to this
Agreement and, provides for civil penalties where a person knowingly submits a false
claim to a public entity. These provisions include false claims made with deliberate
ignorance of the false information or in reckless disregard of the truth or falsity of
information. If Agency seeks to recover penalties pursuant to the False Claims Act, it is
entitled to recover its litigation costs, including attorney's fees. Agent acknowledges that
the filing of a false claim may subject Agent to an administrative debarment proceeding
as the result of which Agent may be prevented to act as a Agent on any public work or
improvement for a period of up to five (5) years. Agent acknowledges debarment by
another jurisdiction is grounds for Agency to terminate this Agreement.
23. JURISDICTIONS AND VENUE
Any action at law or in equity brought by either of the parties for the purpose of
enforcing a right or rights provided for by this Agreement will be tried in a court of
competent jurisdiction in the County of San Diego, State of California, and the parties
waive all provisions of law providing for a change of venue in these proceedings to any
other county.
24. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon Agency
and Agent and their respective successors. Neither this Agreement or any part of it nor
any monies due or to become due under it may be assigned by Agent without the prior
consent of Agency, which shall not be unreasonably withheld.
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25. ENTIRE AGREEMENT
This Agreement, together with any other written document referred to or contemplated
by it, along with the purchase order for this Agreement and its provisions, embody the
entire Agreement and understanding between the parties relating to the subject matter
of it. In case of conflict, the terms of the Agreement supersede the purchase order.
Neither this Agreement nor any of its provisions may be amended, modified, waived or
discharged except in a writing signed by both parties.
26. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on behalf
of Agent each represent and warrant that they have the legal power, right and actual
authority to bind Agent to the terms and conditions of this Agreement.
Interfaith Housing Assistance
Corporation, a California Nonprofit
Corporation
'By:
Carlsbad Redevelopment Agency, a public
body corporate and politic,
By:
Matthew B. Jumper
'By:
Lisa Hildabrand, Executive Director
ATTEST:
Lisa Hildabrand, Secretary
If required by Agency, proper notarial acknowledgment of execution by Agent
must be attached. If a Corporation, Agreement must be signed by one corporate
officer from each of the following two groups.
*Group A.
Chairman,
President, or
Vice-president
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or
assistant secretary under corporate seal empowering the officer(s) signing to bind the
corporation.
APPROVED AS TO FORM:
RONALD R. BALL, General COunsel
G
It A"EXHIBIT "A
TYLER COURT MANAGEMENT PLAN
OCTOBER 2009
MANAGEMENT PLAN
FOR
TYLER COURT APARTMENTS
The intent of this management plan is to present guidelines that the Owner and the Managing Agent will
follow in the operation of Tyler Court Apartments.
Owner: Tyler Court Apartments (Carlsbad Redevelopment Agency,
a Community Redevelopment Agency)
Managing Agent: Interfaith Housing Assistance Corporation
The entire development, including, but not limited to, the land and any and all improvements, fixtures, and
furnishings, equipment, and supplies, is hereinafter referred to as the "Development".
I. Role and Responsibility of the Owner, and its relation, and delegations of authority to the Managing
Agent.
The Interfaith Housing assistance Corporation (IHAC) President is charged by the owner's Board of
Directors with overall responsibility for supervising its affairs. That officer represents, and has
authority to act for, the Owner in relationships with the Managing Agent and other involved parties.
That officer also supervises, on behalf of the Owner, the performance of the Managing Agent in
carrying out its responsibilities. The President of Interfaith Housing Assistance Corporation is the
responsible officer in charge of the operations of the Managing Agent.
The responsibilities of the Owner and Managing Agent are defined in the management agreement and
this management plan so as to eliminate overlapping areas. The responsible officers of the Owner and
Managing Agent are in regular contact to insure close coordination. The management agreement sets
forth the items that are to be paid by the Development or out of the Managing Agent's fee.
A. Managing Agent's Services and Duties. Under the personal and direct supervision of the
President, the Managing Agent (hereinafter referred to as "Agent") shall render services and
perform duties as follows:
1. Personnel Policy and Staffing. On the basis of job standards and wage rates, the Agent
will investigate, hire, pay, supervise, and discharge the personnel necessary to be
employed to properly maintain and operate the Development. Such personnel shall in
every instance be in the Agent's employ. Compensation for the services of such
employees shall be an operating expense of the Development. Personnel Policy is
outlined in a separate document.
C:\Documents and Settings\doris\My Documents\Management\Managernent Plans\Management Plan TCC 21oct09.doc
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2. Maintenance and Repair Program. The Agent will cause the buildings, appurtenances
and grounds of the Developments to be maintained according to standards acceptable
to Owner and its lenders including all normal maintenance and repair work as may be
necessary. The Program is outlined in detail in Section VI of this plan.
3. Expenditure Authorization. With the exception of payments required under the
mortgage, taxes, insurance, utilities, payroll and vendor contractual obligations, no
disbursement shall be made by the Agent in excess of $2,000.00 (when budgeted)
unless specifically authorized by the Owner; excepting, however, that emergency
repairs, involving manifest danger to life or property, or immediately necessary for the
preservation and safety of the Development, or for the safety of the residents, or
required to avoid the suspension of any necessary services to the Development, may be
made by the Agent irrespective of the cost limitation imposed by this paragraph.
Notwithstanding this authority on emergency repairs, it is understood and agreed that
the Agent will, if at all possible, confer immediately with the Owner regarding every
such expenditure and its effect on the budget. Authorization for all payables is required
by the supervisor of the requestor while checks may only be signed by the IHAC
President or a member of the Executive Committee of the Board of Directors.
4. Administration.
a. Records Maintenance. The Agent will maintain a comprehensive system of office
records, books, and accounts in a manner satisfactory to include all appropriate
Development expenditures. Part of this system will include the use of a Check
Request and an Accounts Payable stamp.
(1) Check request has two functions.
(a) to reimburse for money spent out of pocket for
Development expense.
(b) to advance a check for a specific documented
purpose/vendor.
(2) Accounts Payable stamp assists in paying each bill properly. Upon
receipt of each bill, the item is stamped and the Development site noted.
Upon payment of each bill, the remainder of the stamp is completed,
indicating check #, amount and date paid. Preliminary approval by the
site staff is also necessary indicating the item was received or the service
was properly rendered and at the appropriate cost.
Records shall be subject to examination by authorized agents during regular
business hours. As a standard practice, the Agent shall render to the Owner a
C:\Documents and Settings\doris\My Documents\Management\Management Plans\Management Plan TCC 21oct09 doc
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statement of receipts and disbursements, a schedule of accounts receivable and
payable, and a reconciled bank statement as of the end of the preceding month.
b. Accounting Records, Forms, and Vouchers. All accounting and purchasing
procedures are consistent with governmental requirements governing fiscal
operations for multi-family housing Developments. Monthly reports are based
on information provided by the Resident Manager and reviewed by the Directors
of Property Management and Finance. All monthly financial reports, and other
reports required by Owner are prepared by the Director of Finance under the
supervision of the Agent. Resident income certifications are prepared by the
Resident Manager and are kept at the Development office. Copies are kept on
file at the Agent's office. The Agent monitors cash flow on a continuous basis.
The Owner receives a monthly cash flow statement concerning the fiscal
activities, including a financial statement every quarter.
c. Supplies. Office supplies are purchased directly, upon approval, from various
office supplies vendors. The IHAC staff conducts periodic price comparisons.
5. Budgets. At least 60 days before the beginning of each new fiscal year, the Agent will
prepare an operating budget setting forth an itemized statement of the anticipated
receipts and disbursements for the new fiscal year based upon the then current
schedule of monthly rents, and taking into account the general condition of the
Development and Owner's objectives for the ensuing year. Each such budget, together
with a statement for the Agent outlining a plan of operation and justifying the estimates
made in every material item, shall be submitted to the Owner for submission to the
appropriate agency, if necessary, in final draft at least thirty (30) days before the
commencement of the fiscal year for which it has been made. The budget as finally
approved and adopted by the Owner shall serve as a supporting document for the
schedule of monthly rents proposed for the new fiscal year.
6. The Agent shall consult with the Owner concerning any of the following:
a. Property improvements over $2000.00.
b. Changes in rent collection policies.
c. Government requirements seriously affecting the economic status of the
Development.
d. Insurance.
e. Any change in the financial status or needs of the Development that necessitates
a change in the operating budget.
C:\Documents and Settings\doris\My Documents\Management\Management Plans\Management Plan TCC 21oct09.doc n
f. Other matters as required by the management agreement, or specified from
time to time by the Owner.
7. The Agent need not consult with the Owner regarding:
a. Payment of budgeted operating expenses.
b. Selection of residents.
c. Selection of vendors for budgeted services (except as directed by the Owner).
d. Commencement of legal proceedings in the name of the Owner for evictions and
collections of rents.
e. Marketing and advertisements.
f. Other day-to-day activities in the operation of the Development where
consultation is not otherwise required by this management plan or the
management agreement.
8. Compensation. The sole compensation which the Agent shall be entitled to receive for
all services performed under this Plan shall be a fee computed and payable monthly at
the rate approved by the owner.
The Agent will comply with all laws, statutes, ordinances, governmental rules and regulations,
conditional use permits, zoning variances and the like, now in force or which may hereinafter
be enacted, promulgated or granted with respect to the Development.
B. Resident Manager's Duties and Responsibilities. The Resident Manager will handle social
services, including referrals to other agencies. The Manager is charged with the responsibility
of keeping informed of appropriate agencies which can be provide social services directly to
residents. The Resident Manager will perform regular duties, such as resident relations,
collection of rents, schedule of maintenance, and other duties deemed necessary to provide a
safe and harmonious environment for all residents. The Resident Manager will establish and
maintain a waiting list, in compliance with monitoring agencies, rules and regulations applicable
to the Development, to be used to fill subsequent vacancies.
Agency Bank Account. It is the responsibility of the Agent to establish and maintain, in a bank whose
deposits are insured by the Federal Deposit Insurance Corporation and in a manner to indicate the
custodial nature thereof, a separate bank account or accounts as Agent of the Owner for the deposit of
the monies of the Owner, with authority to draw thereon for any payments to be made by the Agent to
discharge any liabilities or obligations incurred pursuant to this Plan, and for the payment of the
Agent's fee, all of which payments shall be subject to the limitations in this Plan.
Page - 4 -
Renting of Units. The Agent will advertise as necessary to fill units by making outreach to local
community organizations and churches and to the general public so as to attract Applicants
representative of the community, and by means of media as necessary. Efforts will include
compliance with the Affirmative Fair Housing Marketing Plan, which targets populations not currently
served. Documentation of marketing efforts will be maintained both at the site and at the corporate
office. Applications will include a line so that applicants may voluntarily disclose their race/ethnicity.
These documents will be retained a minimum of three years.
A. Resident Selection Criteria. The Agent has promulgated a resident selection policy. The
Resident Manager will screen applicants who will be accepted or declined residency in
accordance with the Resident Selection Criteria and appropriate governmental regulations.
B. Resident Certification and Recertification. Incomes and assets of applicants will be verified and
documented by the Agent in accordance with applicable governmental regulations. The
Resident Manager is primarily responsible for obtaining all necessary information and
completion of all forms relating to certification and recertification of incomes. This is done
under the supervision of the Director of Property Management. The Resident Manager must be
knowledgeable regarding applicable governmental forms and procedures.
C. Security Deposit. A security deposit will be charged to all residents. The amount of the deposit
will not exceed one month's rent and will be collected along with the first month's rent. At the
termination of the lease, the resident will be required to return the unit in the same condition
in which it was received less reasonable wear and tear as determined by the Resident Manager.
If there is damage, the actual cost to repair the damage will be deducted from the security
deposit. Any unpaid rent also will be deducted from the security deposit. Any remaining
deposit will be returned to the resident within twenty-one (21) days as required by law. If the
resident owes money in addition to the security deposit, every effort will be made to collect
from the resident.
D. Gate Deposit and Pet Deposit. There will be a $20.00 gate deposit for each opener per tenant.
Pets will be permitted with a $300 deposit and completion of a Pet Agreement/Veterinarian
Certification. No deposit is required for Resident-owned assistive animals.
E. Rent Collection. Rent will be collected by the Resident Manager at the site office. Rents are
due on the first day of every month. All rents are paid by check or money order only. A sign in
the office informs all persons that cash rent is not accepted. Receipts will be given only if
requested by the resident. The Resident Manager deposits the rents in the bank. The deposit
record listing the checks is kept in triplicate: one copy is given to the bank, one copy is retained
by the Resident Manager, and one copy is forwarded with a copy of the rent receipt to the
Director of Finance. All rents are segregated in a separate checking account for the
Development kept in the name of the Owner.
Page - 5 -
Prepayment of rent is not permitted. Partial rent payments are acceptable only in highly
unusual circumstances and only when approved in advance by the Owner. Rent must be paid
within the first five (5) days of each month and will be considered late on the 6th day. Rents
paid after this time are charged a $20.00 late fee. The intent of the late fee is to reimburse the
Development for the costs of collecting late rents and for the loss of the use of the funds. If a
check issued by a resident is returned by the bank, the resident must replace the returned
check and pay the $20.00 Returned Check charge. If a resident continues to have rent checks
returned by the bank, no further checks are to be accepted from that resident; rent must be
paid by money order thereafter.
The Owner and Agent realize that financial problems beyond the control of a resident may arise
(e.g.: loss of job, hospitalization, etc.). Residents will be referred to social service agencies, or
agencies providing assistance in budgeting, if the resident desires. Management cannot compel
residents to pursue any particular remedy.
F. In addition to rent, residents will pay for use of the laundry equipment, their own telephone,
and for Cable TV service.
IV. Administration of Leases.
A. The Agent has the authority to sign, renew or cancel leases for the Apartments and any part
thereof; to collect rents or other charges and expenses due or to become due and give receipts
therefore, to terminate tenancies and sign and serve in the name of the Owner such notices as are
appropriate; to institute and prosecute residents and to recover possession of units in the name
Owner and recover rents and other sums due and, when expedient, to settle, compromise, and
release such actions or suits or reinstate such tenancies, subject to the following procedures which
may be amended from time to time, as required by practical concerns, with the mutual consent of
the Parties.
B. Model lease begins with a One Year agreement followed by a Month-to-Month lease.
C. Verification of vacancies. All data for all residents is input to a computer system. All governmental
forms are printed for residents as a result of data input into the system. Vacancies are tracked on
governmental reports.
V. Delinquent Rent and Evictions. Agent shall act in accordance with the law and with those procedures
established through governmental regulations when dealing with delinquent residents. All means of
working with the resident to pay need to be exhausted before an eviction proceeds. Once legal action
is initiated, the Resident Manager will have no authority to accept rent from the resident. At this
point, the tenancy may be reinstated only under the following conditions:
A. Approval by the Agent;
Page - 6 -
1. Payment by the resident of all past due rent, late charges, and legal fees and court costs
incurred; and
2. Only if legal proceedings have not been previously filed against the resident.
A. A service fee of $20.00 will be charged for returned checks. If payment of rent due is not made
within twenty-four (24) hours of notification, then eviction proceedings may be initiated.
B. On or about the 6th day of the month, if payment has not been received, a pay or quit notice is
executed and served to the resident. Upon expiration of the term of the notice, appropriate
documents are submitted to an attorney for filing and an Unlawful Detainer action will be
instigated.
C. If an eviction is required due to something other than non-payment of rent, documentation is
very important. When documentation is sufficient to warrant eviction, including warning
letters to the resident, papers must be submitted to an attorney as advised above. Paperwork
necessary for an eviction includes a copy of the pay or quit notice, back-up documentation,
rental agreement, and proof of service. Evictions for reasons other than non-payment of rent
are handled according to the following procedure specified in the lease. In addition, the
following steps are taken:
1. The Resident Manager verbally notifies the resident that particular conduct does not
comply with the Development Rules and Regulations. A follow up letter is sent to
summarize the problem and the verbal notification.
2. If problems continue, the Resident Manager sends a written notice to comply to the
resident.
3. If the problem is not resolved, the resident will be given written notice of the
termination of the lease.
4. If the resident does not vacate, appropriate legal action will be taken.
5. Where the violation of the Rules and Regulations is flagrant, or the resident's conduct is
harmful to the Development or its residents, the Resident Manager may instigate
immediate termination proceedings.
D. If a resident files for bankruptcy and avoids paying rent, attorney action will proceed. The
procedure will take longer, however.
E. Upon termination of the lease a move out inspection will be performed by the Resident
Manager in the presence of the resident (if available).
Page - 7 -
VI. Maintenance and Repair of Buildings and Grounds.
A. The Agent has the power and authority to make or cause to be made and supervise repairs and
alterations, and to do decorating in the Apartments and to purchase supplies and pay all bills
therefore. The Agent agrees to secure prior approval on all expenditures in excess of $2,000 for
any one (budgeted) item, except in the case of emergencies.
B. Maintenance personnel complete all maintenance functions they are capable of doing correctly
and promptly. Outside maintenance personnel may be called in to perform maintenance
beyond the capacity of staff maintenance personnel.
C. Equipment and supplies will be purchased and maintained on-site. An inventory list will be
made of this equipment and kept on-site and in the Agent's office.
D. The Agent shall prepare for use by the management a Procedures Manual that includes
standard maintenance procedures. Maintenance of equipment, provided primarily by contract
vendors, will include, but not be limited to, elevators, HVAC systems, wall fans, electric gates,
locks and other mechanical equipment. Upon turnover, the interior of every unit shall be
cleaned and repainted, as needed, and all mechanical repairs shall be completed, as needed.
Floor and window coverings shall be cleaned or replaced, as needed and the apartment
fumigated.
E. Most of the cleaning and general maintenance will be performed by maintenance staff hired
and supervised by the Agent. Should an outside contractor be used, three bids will be obtained
and the lowest or most reasonable bid will be selected (with owner approval, if the bid exceeds
the authorized spending limit). The Resident Manager reviews and authorizes bills (and packing
slips) for payment from outside contractors upon receipt as to cost, items received and work
done.
F. Residents will be required to report to the site office any items requiring maintenance or repair.
Upon notification from a resident of needed repairs, the resident will be asked to complete a
work order request. Numbered work orders will be completed in three parts for all
maintenance or repair. Upon initiation the resident will retain the third copy. The office staff
will then record the work order on the work order log. Upon completion, the maintenance
person who completed the work will sign the work order. The original copy of the work order
will be placed in the unit maintenance file and the remaining copy will be filed in chronological
order with the monthly logs. Non-emergency maintenance or repair requests will be
completed within forty-eight hours, and when this is impossible, the resident will be notified
immediately as to when the maintenance or repairs will be undertaken.
G. Emergency requests will be handled immediately. The Resident Manager will be instructed on
how to handle emergency repairs and will have an approved list of vendors to use in the
absence of the Agent.
Page - 8 -
H. The trees, shrubs and other landscaping features will be maintained on a regular basis by a
contract vendor.
I. An exterminator will be hired to provide an ongoing program of pest control on a monthly
schedule.
J. A regular preventative maintenance schedule will be established for cleaning and painting
gutters, railings, common areas, outside windows, and so on.
K. Trash will be removed from dumpsters in the building by the local garbage collection service as
often as necessary to maintain the Apartments in a neat, clean and sanitary condition.
L. Annual inspections of all units will be performed by the Resident Manager and any damage or
housekeeping problems will be identified at that time.
M. Normal maintenance and management does not include modernization, refinancing, fire
restoration, major rehabilitations, obtaining income tax advice, presenting petitions to planning
or zoning committees, advising on proposed new construction or other counseling.
N. Semi-annual smoke detector inspections inside each apartment will be done by the on site
staff.
0. All elevators will be inspected annually for current operating permits and monthly by a licensed
vendor.
P. All fire extinguishers will be recharged annually and as needed.
Q. Maintenance supplies are purchased directly, upon approval, from various maintenance
supplies vendors. The IHAC staff conducts periodic price comparisons.
VII. Resident Relations.
A. Resident grievances are addressed in the written Grievance Procedures, supplied to all
residents at move-in.
B. Residents' request for maintenance or repairs will be handled as described in paragraph VI(F)
above.
C. On execution of a lease, or at time of move-in, new residents, including all family members, will
be oriented to the house rules and policies. Items reviewed will include the lease, house rules
and regulations, maintenance policies, fiscal policies, supervision of children, pet rules and
regulations, and emergency safety equipment and procedures.
Page - 9 -
D.The Owner and Agent are committed to maximizing resident participation in the operation of
the Development. The formation of a resident organization will be encouraged.
E. Neighborhood watch. A neighborhood watch will be established and implemented with the
assistance of the local Police Department. As part of the neighborhood watch, communication
with the neighboring Developments was initiated in order to establish a network of
communication and develop teamwork within and among the community.
VIM. Management Agreement. The Owner-approved management agreement form is used.
Approved by Owner:
Date
Acknowledged by-Managing Agent:
Date
Page -10
Lisa Hildabrand
Ail Receive-Agenda Item # I \
For the Information of the:
From:
Sent:
To:
Cc:
Subject:
Debbie Fountain
Tuesday, December 01, 2009 1:37 PM
Lisa Hildabrand; Lisa Irvine
Sandra Holder; Cynthia Haas
RE: Tyler Court AB
Asst. CM CA *-CC ^
Date !>( \ City Manager
Hi Lisa. For 2009-2010 the estimated revenue for Tyler Court is $490,000. A total of about $380,000 is budgeted for
operations. The remainder will be deposited to the unreserved fund balance (for Tyler Court) at the end of the fiscal
year. As of 7/1/09, the unreserved fund balance was $1,773,719. This funding balance is intended at some point in time
to be used for substantial repairs/improvements that are needed or going to be needed for the apartments (such as a
new roof, new balconies, renovated apartments, etc.). Let me know if you need something more than this. Thanks.
From: Lisa Mildabrand
Sent: Tuesday, December 01, 2009 10:27 AM
To: Debbie Fountain; Lisa Irvine
Cc: Sandra Holder; Cynthia Haas
Subject: Tyler Court AB
Importance: High
Hi - Can you tell me where the money generated by Tyler court is going and how much we have in reserves for the
project? Thanks.
Lisa Hildabrand
City Manager
•'*;'- ,- - •••
CARLSBAD
1200 Carlsbad Village Drive
Carlsbad, CA 92008-1949
www.carlsbadca.gov
P: 760-434-2821
F: 760-720-9461
E: lisa.hildabrand@carlsbadca.gov
DEC - 1 2009