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Redevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, FEBRUARY 3, 2009
3:30 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2009-001
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Franklin, Henderson, Sniff, and Chairman Kirk
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CLOSED SESSION
NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when acquisition of real property is
considered.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS
R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION
AND/OR DISPOSITION OF REAL PROPERTY LOCATED SOUTHWEST OF THE
INTERSECTION OF HIGHWAY 111 AND LA QUINTA CENTRE DRIVE.
PROPERTY OWNER/NEGOTIATOR: TORRE NISSAN, GEORGE VELARDE.
pp1
Redevelopment Agency Agenda 1 February 3, 2009
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
4!00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Redevelopment Agency on any matter
not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF JANUARY 20, 2009.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF DEMAND REGISTER DATED FEBRUARY 3, 2009.
2. APPROVAL OF A CONTRACT WITH LA QUINTA PALMS REALTY FOR
RESIDENTIAL PROPERTY MANAGEMENT SERVICES FOR THE LA QUINTA
RENTAL HOUSING PROGRAM.
BUSINESS SESSION - NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
Redevelopment Agency Agenda 2 February 3, 2009 002
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on February
17, 2009, commencing with closed session at 3:00 p.m. and open session at 4:00
p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTIN
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Redevelopment Agency meeting of February
3, 2009, was posted on the outside entry to the Council Chamber at 78-495 Calle
Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on January 30, 2009.
DATED: January 30, 2009
1:3�7L"-) 01-)
�e2 VERONICA J. MONTECINO, City Clerk
U City of La Quinta, California
Public Notice
Any writings or documents provided to a majority of the Redevelopment Agency regarding
any item on this agenda will be made available for public inspection at the City Clerk
counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during
normal business hours.
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Redevelopment Agency Agenda 3 February 3, 2009
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AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: February 3, 2009 BUSINESS SESSION
ITEM TITLE: Demand Register Dated CONSENT CALENDAR
February 3, 2009
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
February 3, 2009 of which $799,638.30
represents Redevelopment Agency Expenditures
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
004
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COUNCIL/RDA MEETING DATE: February 3, 2009
ITEM TITLE: Approval of a Contract with La Quinta
Palms Realty for Residential Property Management
Services for the La Quinta Rental Housing Program
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve a contract with La Quinta Palms Realty for residential property management
services for the La Quinta Rental Housing Program and authorize the Executive Director
to execute the contract.
FISCAL IMPLICATIONS:
Based on a current inventory of 27 Cove homes, and a monthly management fee of
$125 per home, the annual cost for residential property management is $40,500.
For extraordinary capital expenditures in excess of $5,000 that are required on one
unit on a single occasion (subject to Agency review and approval), La Quinta Palms
would receive a 5% construction management fee.
In cases where Agency Cove homes are sold to qualified buyers and La Quinta Palms
acts as the sales agent, La Quinta Palms would receive a 3% commission on the sale
at the close of escrow.
With the exception of the monthly management fee increase of $15 per home, the
terms and conditions of the contract remain the same. The existing rates have been in
effect since 2004.
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Adequate funds have been budgeted in RDA Account Number 245-9001-703.51-40,
La Quinta Rental Program.
BACKGROUND AND OVERVIEW:
In 1995, the Agency purchased 50 single-family homes in the Cove to preserve very
low- and low-income affordable housing covenants. The dwellings have been rented
to very low- and low-income Section 8 households, with 23 homes sold to qualified
tenants. Property management and maintenance services have been provided through
local real estate companies. In 2002, the Agency entered into a two-year contract
with La Quinta Palms Realty for these services; in 2004, the Agency approved a five-
year contract extension with La Quinta Palms Realty, which expires in February 2009.
On October 21, 2008, the Agency Board authorized staff to negotiate a contract with
La Quinta Palms Realty per La Quinta Municipal Code Section 3.32.050(C), which
states, "The City may authorize award and execution of service contracts with no
competitive proposals where experience with the proposed service provider has
demonstrated competence and satisfactory performance or in the renewal or
renegotiation of existing contracts for continuing services."
The proposed contract (Attachment 1) is for a two-year term (through February 2011).
The monthly per -unit management fee has increased from $1 10 per unit to $125 per
unit. As in the previous contract, La Quinta Palms would be entitled to receive a 5%
construction management fee for extraordinary capital expenditures (excluding
carpeting, painting, fixture or appliance replacement, garage door repair or
replacement, and door repair or replacement) exceeding $5,000 on any one unit on a
single occasion. Prior to authorizing work for these capital expenditures, La Quinta
Palms would obtain Agency approval. La Quinta Palms would also be entitled to a 3%
commission when the Cove homes are sold to qualified buyers, and La Quinta Palms
has acted as sales agent in the transaction.
Of the 27 homes, six are vacant. Two of the vacant homes are currently undergoing
landscape construction as part of the City/Coachella Valley Water District (CVWD)
water -efficiency demonstration project. La Quinta Palms Realty markets the vacant
homes for rent via active postings in the Riverside County Housing Authority Web Site
(www.harivco.org), internet postings through La Quinta Palms Realty's web site
(www.laquintapalmsrealty.com), and local advertising in The Desert Sun Newspaper
and the Pennysaver.
As part of its services, La Quinta Palms Realty prepares a detailed monthly accounting
report on the Cove Homes. The report is over 100 pages long; therefore, it is not
included in this staff report. The latest copy is available for review in the City
Manager's Office.
It should be noted the Agency endeavors to sell the homes to qualified buyers. As
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tenants qualify or as dwellings become vacant, the Agency then substantially
rehabilitates the units and sells them to very low-income households. In order to
facilitate the sale, the Agency provides a silent second trust deed loan to ensure the
housing costs are affordable to very low-income households. The Agency also
monitors the homes that have been sold — if a home is in danger of foreclosure, staff
works with the homeowner to help them keep the home, or if the home goes into
foreclosure, the Agency attempts to repurchase the home to preserve the affordability
covenants.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve a contract with La Quinta Palms Realty for residential property
management services for the La Quinta Rental Housing Program and authorize
the Executive Director to execute the contract; or
2. Do not approve a contract extension with La Quinta Palms Realty for residential
property management services for the La Quinta Rental Housing Program; or
3. Provide staff with alternative direction.
Respectfully submitted,
Douglas KR. EvhKs,
Assistant City Manager — Development Services
Approved for submission by:
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Thomas P. Genovese, Executive Director
Attachment 1. Contract with La Quinta Palms Realty
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ATTACHMENT
AGREEMENT FOR CONTRACT SERVICES
[PROPERTY MANAGEMENT SERVICES]
THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement"), is made and entered
into by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic, organized and existing under the California Community Redevelopment Law (Health & Safety
Code § 33000 et seq.) ("Agency"), and LA QUINTA PALMS REALTY, a California corporation
("Contractor").
The parties hereto agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scone of Services. In compliance with all terms and conditions of this
Agreement, the Contractor shall provide those services related to residential property management and
sales for the Agency, as specified in the "Scope of Services" attached hereto as Exhibit "A-1" and
incorporated herein by this reference (the "services" or "work"). Contractor warrants that all services
will be performed in a competent, professional and satisfactory manner in accordance with the
standards prevalent in the industry for such services.
1.2 Compliance with Law. All services rendered hereunder shall be provided in
accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La
Quinta ("City") and any Federal, State or local governmental or quasi -governmental agency of
competent jurisdiction.
1.3 Licenses, Permits. Fees and Assessments. Contractor shall obtain at its sole
cost and expense such licenses, permits and approvals as may be required by law for the performance
of the services required by this Agreement. Contractor shall have the sole obligation to pay for any
fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and
arise from or are necessary for the performance of the services required by this Agreement.
1.4 Familiarity with Work. By executing this Agreement, Contractor warrants that
(a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the
site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully
considered how the work should be performed, and (d) it fully understands the facilities, difficulties
and restrictions attending performance of the work under this Agreement. Should the Contractor
discover any latent or unknown conditions materially differing from those inherent in the work or as
represented by the Agency, it shall immediately inform Agency of such fact and shall not proceed
except at Contractor's risk until written instructions are received from the Contract Officer (as defined
in Section 4.2 hereof).
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1.5 Care of Work. The Contractor shall adopt reasonable methods during the life of
the Agreement to furnish continuous protection to the work, and the equipment, materials, papers and
other components thereof to prevent losses or damages, and shall be responsible for all such damages,
to persons or property, until acceptance of the work by Agency, except such losses or damages as may
be caused by Agency's own negligence. The performance of services by Contractor shall not relieve
Contractor from any obligation to correct any incomplete, inaccurate or defective work at no further
cost to the Agency, when such inaccuracies are due to the negligence of Contractor.
1.6 Additional Services. In accordance with the terms and conditions of this
Agreement, the Contractor shall perform services in addition to those specified in the Scope of
Services (Exhibit "A-1") when directed in writing to do so by the Contract Officer, provided that
Contractor shall not be required to perform any additional services without compensation. Any
addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by
the Contract Officer. Any greater increase must be approved by the Agency Board.
1.7 Special Requirements. Additional terms and conditions of this Agreement, if
any, which are made a part hereof are set forth in the "Special Requirements" attached hereto as
Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the
provisions of Exhibit `B" and any other provisions of this Agreement, the provisions of Exhibit `B"
shall govern.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement, the
Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto
as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract
amount over the two (2) year term of the lesser of (i) Eighty -One Thousand Dollars ($81,000) or (ii)
One Hundred Twenty -Five Dollars ($125) per unit monthly, based on a maximum of twenty-seven
(27) units ("Contract Sum"), except as provided in Section 1.6. The method of compensation shall be
as set forth in the Schedule of Compensation (Exhibit "C").
2.2 Method of Payment. Any month in which Contractor wishes to receive
payment, Contractor shall submit to the Agency no later than the tenth (1 Oth) working day of such
month, in the form approved by the Agency's Finance Director, an invoice for services rendered prior
to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including
time and materials, (2) specify each staff member who has provided services and the number of hours
assigned to each such staff member, and (3) indicate the total expenditures to date. Such invoice shall
contain a certification by a principal member of Contractor specifying that the payment requested is
for work performed in accordance with the terms of this Agreement. Agency will pay Contractor for
all expenses stated thereon which are approved by Agency pursuant to this Agreement no later than
the last working day of the month.
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3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed diligently and within the time period established in the "Schedule of Performance"
attached hereto as Exhibit "D" and incorporated herein by this reference. Extensions to the time
period specified in the Schedule of Performance may be approved in writing by the Contract Officer.
3.3 Force Maieure. The time period specified in the Schedule of Performance
(Exhibit "D") for performance of the services rendered pursuant to this Agreement shall be extended
because of any delays due to unforeseeable causes beyond the control and without the fault or
negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, fires,
earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargos, acts of any
governmental agency other than Agency, and unusually severe weather, if the Contractor shall within
ten (10) days of the commencement of such delay notify the Contracting Officer in writing of the
causes of the delay. The Contracting Officer shall ascertain the facts and the extent of delay, and
extend the time for performing the services for the period of the forced delay when and if in his
judgment such delay is justified, and the Contracting Officer's determination shall be final and
conclusive upon the parties to this Agreement.
3.4 Term. Unless earlier terminated in accordance with Section 7.7 or Section 7.8
of this Agreement, this Agreement shall continue in full force and effect for two (2) years or until
completion of the services, except as otherwise provided in the Schedule of Performance (Exhibit
"D").
4.0 COORDINATION OF WORK
4.1 Representative of Contractor. The following principals of Contractor are
hereby designated as being the principals and representatives of Contractor authorized to act in its
behalf with respect to the work specified herein and make all decisions in connection therewith:
a. Bruce Cathcart, or b. James Cathcart
It is expressly understood that the experience, knowledge, capability and reputation of the
foregoing principals were a substantial inducement for Agency to enter into his Agreement.
Therefore, the foregoing principals shall be responsible during the term of this Agreement for
directing all activities of Contractor and devoting sufficient time to personally supervise the services
hereunder. The foregoing principals may not be changed by Contractor and no other personnel may be
assigned to perform the service required hereunder without the express written approval of Agency.
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4.2 Contract Officer. The Contract Officer shall be the Community Development
Director or such other person as may be designated by the Executive Director of Agency. It shall be
the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of
the performance of the services and the Contractor shall refer any decisions which must be made by
Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required
hereunder shall mean the approval of the Contract Officer.
4.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Contractor, its principals and employees were a substantial
inducement for the Agency to enter into this Agreement. Therefore, Contractor shall not contract with
any other entity, including any legal services from an individual practitioner or law firm, to perform in
whole or in part the services required hereunder without the express written approval of the Agency.
In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily
or by operation of law, without the prior written approval of Agency.
4.4 Independent Contractor. Neither the Agency nor any of its employees shall
have any control over the manner, mode or means by which Contractor, its agents or employees,
perform the services required herein, except as otherwise set forth. Contractor shall perform all
services required herein as an independent contractor of Agency and shall remain at all times as to
Agency a wholly independent contractor with only such obligations as are consistent with that role.
Contractor shall not at any time or in any manner represent that it or any of its agents or employees are
agents or employees of Agency. The foregoing is not intended to preclude Contractor from
performing the services set forth in Paragraph 5 of Exhibit "A-L '
4.5 Agency Cooperation. The Agency shall provide Contractor with any plans,
publications, reports, statistics, records or other data or Information pertinent to services to be
performed hereunder which are reasonably available to the Agency. The Agency shall additionally
provide Contractor staff assistance and shall take prompt and appropriate action when it will assist in
ensuring and timely performance by Contractor hereunder.
5.0 INSURANCE, INDEMNIFICATION AND BONDS.
5.1 Insurance.
a. Agency shall procure and maintain general liability insurance covering
the property that is the subject of this Agreement. Contractor shall be named as an additional insured
on such policy, and shall, from time to time, be provided a certificate of liability insurance reflecting
the same. Contractor shall promptly investigate and promptly report in detail to the Agency all
accidents and claims for damage relating to the ownership, operation, or maintenance of the subject
property, and any damage or destruction of the property and the estimated costs bf repair, and shall
prepare for approval by the Agency all reports required by an insurance company in connection with
any such accident, claim, damage, or destruction. These reports shall be given to the Agency promptly
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and in any case within ten (10) days after the occurrence of any such accident, claim, damage, or
destruction.
b. Contractor shall procure worker's compensation insurance in
accordance with the laws of the State of California and employer's liability insurance applicable to
and covering all employees of the contractor at the property and all persons engaged in the
performance of any work required under this Agreement with limits of liability required by law.
C. The Contractor shall procure and maintain, at its cost, and submit
concurrently with its execution of this Agreement, insurance, including Errors and Omissions
Insurance and Property Manager's General Liability Insurance, with respect to the subject property and
the operations of or on behalf of Contractor, in an amount not less than : (A) for Errors and Omissions
Insurance, One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in
the aggregate, and (B) for General Liability Insurance, One Million Dollars ($1,000,000) per
occurrence, and One Million Dollars ($1,000,000) in the aggregate. Unless otherwise approved in
advance by the Agency's Executive Director, the insurance to be provided by Contractor may provide
for a deductible of not more than Twenty -Five Thousand Dollars ($25,000).
d. The insurance policies required under subparagraph c above shall (i)
contain a severability of interest clause providing that the coverage shall be primary for losses arising
out of Contractor's performance hereunder and neither the Agency or the City of La Quints (the
"City") nor its insurers shall be required to contribute to any such loss; and (ii) be written on an
"occurrence" basis rather than a "claims -made" basis, and shall name the Agency and City and their
respective officers, officials, employees, agents, and representatives as additional insureds.
e. A certificate(s) evidencing the foregoing insurance coverages meeting
the above requirements shall be delivered to and approved by the Agency prior to commencement of
the services hereunder.
f. All insurance required by Contractor pursuant to this Section shall be
kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days'
written notice of proposed cancellation to Agency from the insurer. The procuring of such insurance
or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of
Contractor's obligation to indemnify the Agency and City and their respective officers, officials,
employees, agents, representatives, contractors, and subcontractors.
5.2 Indemnification. Contractor has certain due diligence requirements in the
marketing of apartment units and subsequent annual recertification of the household in each unit.
Contractor will publish these marketing and recertification procedures so that not only its employees
but also the Agency will be aware of the specific screening procedures entailed in such due diligence.
Of particular importance is screening for tenant income to ensure compliance with applicable
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affordable housing requirements, including federal Section 8 requirements. Contractor shall
indemnify, defend and hold Agency and the City of La Quinta and each of their respective officials,
members, employees, agents, and representatives harmless from and against all damages, losses,
actions, causes of action, liabilities, claims, costs and expenses, including, without limitation,
attorney's fees and court costs, in the event Contractor leases any unit to a third party or parties who
fail to satisfy the eligibility or income requirements established for such units, or Contractor charges
rent for any unit in excess of the amount allowed under applicable law for such housing units.
Contractor shall not be responsible under this paragraph for the fraudulent acts of any third party or
parties if Contractor properly followed the income verification procedures as approved by the Agency.
Furthermore, Contractor shall indemnify and hold Agency and the City of La Quinta and each of their
respective officials, members, employees, agents, and representatives harmless from any and all
losses, costs, damages, liabilities and expenses, including, without limitation, reasonable attorney's
fees, arising directly or indirectly out of (i) any gross negligence and willful misconduct of Contractor,
or any of its officers, partners, directors, agents, or employees, in connection with this Agreement or
Contractor's services or work hereunder, whether within or beyond the scope of its duties or authority
hereunder, (ii) any claims for personal injuries to employees incurred during the course of their
employ if such claims are covered by workers' compensation insurance required herein or (iii) all
employment relations between Contractor and its employees, provided, however, that the Agency does
not interfere in such relationship. The provisions of this paragraph shall survive the termination of
this Agreement.
5.3 Remedies. In addition to any other remedies the Agency or City may have if
Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and
within the time herein required, the Agency or City may, at their respective sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order the Contractor to stop work under this Agreement and/or withhold
any payment(s) which become due to Contractor hereunder until Contractor
demonstrates compliance with the requirements hereof.
C. Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to any other remedies
the Agency or City may have and are not the exclusive remedies for Contractor's failure to maintain or
secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting
in any way the extent to which Contractor may be held responsible for payments of damages to
persons or property resulting from Contractor's or its subcontractors' performance of work under this
Agreement.
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6.0 RECORDS AND REPORTS.
6.1 Reports. Contractor shall periodically prepare and submit to the Contract
Officer such reports concerning the performance of the services required by this Agreement as the
Contract Officer shall require.
6.2 Records. Contractor shall keep such books and records as shall be necessary to
perform the services required by this Agreement and enable the Contract Officer to evaluate the cost
and the performance of such services. Books and records pertaining to costs shall be kept and
prepared in accordance with generally accepted accounting principles. The Contract Officer shall have
full and free access to such books and records at all reasonable times, including the right to inspect,
copy, audit and make records and transcripts from such records.
6.3 Ownership of Documents. Originals of all drawings, specifications, reports,
records, documents and other materials, whether in hard copy or electronic form, which are prepared
by Contractor, its employees, subcontractors and agents in the performance of this Agreement, shall be
the property of Agency and shall be delivered to Agency upon the termination of this Agreement or
upon the earlier request of the Contract Officer, and Contractor shall have no claim for further
employment or additional compensation as a result of the exercise by Agency of its full rights of
ownership of the documents and materials hereunder. Contractor may retain copies of such
documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied
herein. Contractor shall cause all subcontractors to assign to Agency any documents or materials
prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall
indemnify Agency for all damages suffered thereby.
6.4 Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Contractor in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract Officer or
as required by law. Contractor shall not disclose to any other private entity or person any information
regarding the activities of the Agency, except as required by law or as authorized by the Agency.
7.0 ENFORCEMENT OF AGREEMENT.
7.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the internal laws of the State of
California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or
any other appropriate court in such county, and Contractor covenants and agrees to submit to the
personal jurisdiction of such court in the event of such action.
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7.2 Defaults. In the event of any default of the terms of this Agreement, the
nondefaulting party shall give written notice of default to the party in default, and the party in default
shall immediately commence to cure such default and shall prosecute such default to cure within thirty
(30) days of receipt of the written notice of default; provided the time period to cure such default may
be extended by the nondefaulting party in such parry's sole and absolute discretion; provided,
however, that if a default by Contractor causes an immediate danger to the health, safety and general
welfare, the Agency may take such immediate action as the Agency deems warranted. Nothing herein
shall limit Agency's right to terminate this Agreement with or without cause pursuant to Section 7.7.
7.3 Retention of Funds. Agency may withhold from any monies payable to
Contractor sufficient funds to compensate Agency for any losses, costs, liabilities or damages it
reasonably believes were suffered by Agency due to the default of Contractor in the performance of
the services required by this Agreement.
7.4 Waiver. No delay or omission in the exercise of any right or remedy of a
nondefaulting party on any default shall impair such right or remedy or be construed as a waiver.
Agency's consent or approval of any act by Contractor requiring Agency's consent or approval shall
not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act
of Contractor. Any waiver by either party of any default must be in writing and shall not be a waiver
of any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties
are cumulative and the exercise by either party of one or more of such rights or remedies shall not
preclude the exercise by it, at the same or different times, of any other rights or remedies for the same
default or any other default by the other party.
7.6 Legal Action. In addition to any other rights or remedies, either party may take
legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any
default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any
other remedy consistent with the purposes of this Agreement.
7.7 Termination by Agency Prior To Expiration Of Term.The Agency reserves the
right to terminate this Agreement at any time, with or without cause, upon written notice to
Contractor. Upon receipt of any notice of termination, Contractor shall immediately cease all services
hereunder except such as may be specifically approved by the Contract Officer. Contractor shall be
entitled to compensation for all services rendered prior to receipt of the notice of termination and for
any services authorized by the Contract Officer thereafter in accordance with the Schedule of
Compensation (Exhibit "C") or such as may be approved by the Contract Officer, except as provided
in Section 7.3.
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7.8 Agency Completion of Work. If termination by Agency prior to the expiration
of the term is due to the failure of the Contractor to fulfill its obligations under this Agreement,
Agency may take over the work and prosecute the same to completion by contract or otherwise, and
the Contractor shall be liable to the extent that the total cost for completion of the services required
hereunder exceeds the compensation herein provided; provided, however, that (i) the Agency shall
first comply with Section 7.2, and (ii) the Agency shall use reasonable efforts to mitigate such
damages. Nothing herein shall prevent or preclude Agency from withholding any payments to the
Contractor for the purpose of setoff or partial payment of the amounts owed the Agency as provided in
Section 7.3.
7.9 Termination by Contractor Prior to Expiration of Term. If Agency is in default and
Contractor has complied with Section 7.2, and Agency's default remains uncured within the cure
period provided therein, the Contractor may then terminate this Agreement by giving a thirty (30) day
written notification to Agency. Contractor shall continue to perform the services required of it by this
Agreement during such thirty (30) day period. Contractor shall be entitled to the compensation set
forth in this Agreement for such thirty (30) day period. At the end of the thirty (30) day period this
Agreement shall be terminated unless Agency has cured the noticed default prior to the end of the
thirty (30) day period. Contractor shall be entitled to compensation for services rendered pursuant to
this Agreement prior to the date of termination.
7.10 Attorneys' Fees. If either party commences an action against the other party
arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees and costs of suit, including expert witness fees, from the losing party.
8.0 AGENCY AND CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION.
8.1 Non -liability of Agency and City Officers and Employees. No officer, official,
employee, agent, or representative the Agency or City shall be personally liable to the Contractor, or
any successor in interest, in the event of any default or breach by the Agency or City or for any amount
which may become due to the Contractor or to its successor, or for breach of any obligation of the
terms of this Agreement.
8.2 Conflict of Interest. No officer, official, employee, agent, or representative of
the Agency or City shall have any personal interest, direct or indirect, in this Agreement nor shall any
such officer or employee participate in any decision relating to the Agreement which affects his
personal interest or the interest of any corporation, partnership or association in which he is, directly or
indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it
has not paid or given and will not pay or give any third party any money or other consideration for
obtaining this Agreement.
882/015610-0040 99191001 a01293/09 016
8.3 Covenant against Discrimination. Contractor covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of race, color,
creed, religion, sex, marital status, national origin, ancestry, or any other impermissible classification
in the performance of this Agreement. Contractor shall comply with all applicable wage and labor
laws and regulations all laws and regulations pertaining to nondiscrimination in employment.
9.0 MISCELLANEOUS PROVISIONS
9.1 Notice. Any notice, demand, request, consent, approval, communication either
party desires or is required to give to the other party shall be in writing and delivered by one of the
following means to the address shown forth below: (i) by personal delivery during regular business
hours; (ii) by United States first class mail, certified, and prepaid; or (iii) by reputable same -day or
overnight courier that provides a receipt showing date and time of delivery. Either party may change
its address by notifying the other party of the change of address in writing. Notices personally
delivered or delivered by courier shall be deemed effective upon receipt. Notices delivered by mail
shall be effective as of Noon on the second business day following deposit with the United States
Postal Service.
To Agencv:
LA QUINTA REDEVELOPMENT AGENCY
78-495 Calle Tampico
La Quinta, California 92253
Attention: Community Development Director
To Contractor:
LA QUINTA PALMS REALTY
51-001 Eisenhower Drive
La Quinta, California 92253
Attention: Bruce Cathcart or James Cathcart
9.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and all previous understandings, negotiations and agreements are integrated into and
superseded by this Agreement.
9.3 Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing signed by both parties.
9.4 Severability. In the event that any one or more of the phrases, sentences,
clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable
by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability
1 2/015640-0040
9:1910.01 a01/23/09
10
017
shall not effect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this
Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of
the parties hereunder.
9.5 Authority. The persons executing this Agreement on behalf of the parties
hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and
that by so executing this Agreement the parties hereto are formally bound to the provisions of this
Agreement.
882/015610-0040
981910 01 a01/23/09
[end — signature page follows]
11
IN WITNESS WHEREOF, the parties have executed this Agreement to be effective
upon the latest of the dates set next to the signature of parties.
Dated:
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
Agency Counsel
Dated:
LA QUINTA REDEVELOPMENT AGENCY, a public
body, corporate and politic
M
Chairman
"AGENCY"
LA QUINTA PALMS REALTY, a California
0
Bruce Cathcart, Broker
"CONTRACTOR"
862/015610-0040 12
98191001 a01/23/09
.- 019
EXHIBIT "A -I"
SCOPE OF SERVICES
Agency hereby retains Contractor to provide all residential property management services required
to manage the Agency -owned properties listed on Exhibit A-2; said list may be expanded or reduced
at the sole discretion of Agency.
The residential property management services shall include, but not be limited to the following:
Project Administration
• Monthly and annual financial record -keeping and reporting
• Rent collection including late charges; miscellaneous tenant charges; and collection
efforts on overdue accounts, excluding any costs incurred by Contractor's use of a
bonded collection agency which shall be at the expense of the Agency
• Creation and implementation of a procedure for the collection of past due rent payments
• Vendor and subcontractor contracts. Invoices for payment by the Agency shall be
submitted on a monthly basis
• Monthly and annual project status reports
• Notify tenants and governmental agencies of the change in management service
• Market, advertise, and rent all vacant units
2. Coordinate and Comply with Public Housing Authority ("PHA") Regulations for
• Obtaining new or replacement Section 8 tenants
• Coordinating new tenant leases with the PHA
• Reconciling monthly Housing Assistance Payments, including periodic revisions to the
monthly amounts
• Creation and implementation of a procedure for the collection of past due Housing
Assistance Payments
Completing repair of deficiencies resulting from PHA's periodic property inspections
3. Tenant Matters
• New tenant screening, including - credit check, personal references, employment
verification, etc.
• Monthly tenant rent collection, including late fees, if applicable
• Pre move -in and move -out property inspections
• Eviction process (Agency's Executive Director to provide written direction to commence
eviction and approval of selected law firm; the Agency to pay for such expenses)
4. Unit Maintenance
• Receiving and processing tenant routine repair requests and emergency repair requests on a
24 hour basis, 7 days per week. If this task is subcontracted, the cost for administration of
requests will be paid by the property manager.
• Overseeing work provided by maintenance staff or subcontractor
• Compliance with PHA periodic inspections
Exhibit "A-1" 020
Savo15610-0oao Pa e 1 of 2
981910.01 a0123/09 g
Receive repair requests and dispatch repair services in a timely manner
Conduct monthly drive -by inspections and periodic interior and exterior inspections when
warranted.
5. Real Estate Sales
• As units are vacant and local market conditions dictate, serve as the Agency's sales agent
and handle the transactions necessary to sell the individual units to be made available for
sale. The commission to be paid as part of this transaction will be no more than 3.0% of
the sales price. Selection of available units for sale shall be at the sole and absolute
discretion of the Agency.
Exhibit "A-l"
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981910 01 a01/23/09 g 0 n 1
"EXHIBIT A-2" - PROPERTY LIST
Prop. # Address
1.
53-775 Ave. Alvarado
2
54-245 Ave. Herrera
3
53-825 Ave. Juarez
4
52-855 Ave. Ramirez
5
54-280 Ave. Madero
6
53-523 Ave. Martinez
7
53-541 Ave. Martinez
8
52-565 Eisenhower Dr.
9
52-845 Ave. Villa
10
52-635 Ave. Diaz
11
53-105 Ave. Herrera
12
53-275 Ave. Navarro
13
51-395 Ave. Vallejo
14
52-835 Ave. Villa
15
51-805 Ave. Cortez
16
52-985 Ave. Carranza
17
53-880 Ave. Navarro
18
52-425 Eisenhower Dr.
19
52-225 Ave. Vallejo
20
53-105 Ave. Obregon
21
53-155 Ave. Obregon
22
53-175 Ave. Obregon
23
53-565 Ave. Vallejo
24
52-985 Eisenhower Dr.
25
53-795 Ave. Herrera
26
53-965 Ave. Diaz
27
51-395 Calle Kalima
882/015610-0040
98191001 a01/23/09
Exhibit "A-2" - Page I of I
022
"EXHIBIT `B"
SPECIAL REQUIREMENTS
The Agency shall not release checks to Contractor or subcontractors that provide services under this
Agreement unless or until they receive the necessary required business licenses or workers
compensation coverage and provide the required Certificate(s) of Insurance.
The Contractor shall utilize the services of subcontractors to perform certain duties under this
Agreement. The Contractor will hire those subcontractors that provide quality services at the lowest
possible price.
If the expenditure amount in which a subcontractor will be used exceeds $2,000, the Contractor
shall obtain two (2) phone bids. If the anticipated expenditures are estimated to exceed $3,500, then
three (3) written bids shall be secured.
However, should an emergency situation occur that will not provide adequate time for the bid
process to be completed as described above, the Contractor shall select the subcontractor that can
best provide the required services. The Contractor shall notify the Agency in any such emergency.
Exhibit "B"
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981910.01 a01/23/09 g
023
EXHIBIT "C"
SCHEDULE OF COMPENSATION
Subject to services actually rendered, Agency shall compensate Contractor monthly based upon the
following:
Subject to Section 2.1 of the Agreement, Contractor shall receive a monthly fee of $125.00
per unit based upon the number of units managed and rented during each month.
2. Repair and maintenance costs incurred by Contractor, or any third party contractor, shall be
submitted monthly to Agency for its review and payment directly to the service provider.
Extraordinary capital expenditures (excluding carpeting, painting, fixture or appliance
replacement, garage door repair or replacement, HVAC repair or replacement, fence repair
or replacement, door repair or replacement) in excess of five thousand dollars ($5,000)
required on any one unit on a single occasion shall permit the Contractor to assess the
Agency, subject to prior Agency review and approval, an additional construction
management fee of five percent (5%) based upon the one time capital expenditure cost.
4. Agency shall pay Contractor a three percent (3%) commission on those home sales that
Contractor is the procuring cause at the time of the recordation of the grant deed and close of
escrow. Agency shall, at its sole discretion, determine which units are available for sale and
shall advise Contractor in writing of the availability.
Exhibit "C"
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024
EXHIBIT "D"
SCHEDULE OF PERFORMANCE
The Agreement between the Agency and Contractor provides for the following Schedule of
Performance:
1. Term of Agreement - Contractor shall provide the stated services for two (2) years
commencing upon the execution of the Agreement by Agency and Contractor. Said term is
subject to earlier termination pursuant to the Agreement.
2. Contractor shall provide by the fifteenth (15th) day of every month a report showing all
revenue and expenses incurred for every unit and a marketing report depicting all
advertising, marketing, vacancies, leasing, and maintenance activity for the previous month.
3. Contractor shall provide an annual statement showing the previous year's operation by the
fifteenth (15th) day of July during each fiscal year of this Agreement.
4. All maintenance requests including Public Housing Authority (PHA) requirements shall be
accomplished in the quickest commercially feasible manner subject to Exhibit `B".
5. Contractor shall prepare for Agency's review and execution all monthly check
disbursements and appropriate supporting materials for each disbursement by the tenth
(loth) and twenty-fifth (25th) of every month. Contractor shall reconcile all check
disbursements by the fifteenth (15th) of every month.
Exhibit "D"
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