2021-22 J&H Asset Property Management - Dune Palms Mobile EstatesMEMORANDUM
DATE:
TO:
FROM:
RE:
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
___ Approved by City Council on ___________________________________________
___ City Manager’s signing authority provided under the City’s Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
___ Department Director’s or Manager’s signing authority provided under the City’s
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
___ Bid ___ RFP ___ RFQ ___ 3 written informal bids
___ Sole Source ___ Select Source ___ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
___ Agreement payment will be charged to Account No.: _____________________
___ Agreement term: Start Date ________________ End Date ________________
___ Amount of Agreement, Amendment, Change Order, etc.: $____________________
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
___ Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: ______________________________ Date: _______________
___ Bonds (originals)as required by the Agreement (Performance, Payment, etc.)
___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: Review the “Form 700 Disclosure for Consultants” guidance to determine if a Form 700 is
required pursuant FPPC regulation 18701(2)
___ Business License No. __________________; Expires: __________________
___ Requisition for a Purchase Order has been prepared (Agreements over $5,000)
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AGREEMENT FOR CONTRACT SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (the “Agreement”) is made
and entered into by and between the LA QUINTA HOUSING AUTHORITY, a
public body, corporate and politic (“Authority”), and J & H ASSET PROPERTY
MGT., INC. a CA Limited Liability Corporation (“Contracting Party”). The
parties hereto agree as follows:
1.SERVICES OF CONTRACTING PARTY.
1.1Scope of Services. In compliance with all terms and conditions of
this Agreement, Contracting Party shall provide those services related to
property management services for the Dune Palms Mobile Estates located at
46400 Dune Palms Road, in La Quinta, CA 92253, as specified in the “Scope
of Services” attached hereto as “Exhibit A” and incorporated herein by this
reference (the “Services”). Contracting Party represents and warrants that
Contracting Party is a provider of first-class work and/or services and
Contracting Party is experienced in performing the Services contemplated
herein and, in light of such status and experience, Contracting Party covenants
that it shall follow industry standards in performing the Services required
hereunder, and that all materials, if any, will be of good quality, fit for the
purpose intended. For purposes of this Agreement, the phrase “industry
standards” shall mean those standards of practice recognized by one or more
first-class firms performing similar services under similar circumstances.
1.2Compliance 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 agency of competent jurisdiction.
1.3Wage and Hour Compliance, Contracting Party shall comply with
applicable Federal, State, and local wage and hour laws.
1.4Licenses, Permits, Fees and Assessments. Except as otherwise
specified herein, Contracting Party 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, including a City of
La Quinta business license. Contracting Party and its employees, agents, and
subcontractors shall, at their sole cost and expense, keep in effect at all times
during the term of this Agreement any licenses, permits, and approvals that
are legally required for the performance of the Services required by this
Agreement. Contracting Party 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, and shall indemnify, defend (with
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counsel selected by Authority), and hold Authority, City, their elected officials,
officers, employees, and agents, free and harmless against any such fees,
assessments, taxes, penalties, or interest levied, assessed, or imposed
against Authority or City hereunder. Contracting Party shall be responsible
for all subcontractors’ compliance with this Section.
1.5Familiarity with Work. By executing this Agreement, Contracting
Party warrants that (a) it has thoroughly investigated and considered the
Services to be performed, (b) it has investigated the site where the Services
are to be performed, if any, and fully acquainted itself with the conditions
there existing, (c) it has carefully considered how the Services should be
performed, and (d) it fully understands the facilities, difficulties, and
restrictions attending performance of the Services under this Agreement.
Should Contracting Party discover any latent or unknown conditions materially
differing from those inherent in the Services or as represented by Authority,
Contracting Party shall immediately inform Authority of such fact and shall not
proceed except at Contracting Party’s risk until written instructions are
received from the Contract Officer, or assigned designee (as defined in
Section 4.2 hereof).
1.6Standard of Care. Contracting Party acknowledges and
understands that the Services contracted for under this Agreement require
specialized skills and abilities and that, consistent with this understanding,
Contracting Party’s work will be held to an industry standard of quality and
workmanship. Consistent with Section 1.5 hereinabove, Contracting Party
represents to Authority that it holds the necessary skills and abilities to satisfy
the industry standard of quality as set forth in this Agreement.
1.7Additional Services. In accordance with the terms and conditions
of this Agreement, Contracting Party shall perform services in addition to
those specified in the Scope of Services (“Additional Services”) only when
directed to do so by the Contract Officer, or assigned designee, provided
that Contracting Party shall not be required to perform any Additional Services
without compensation. Contracting Party shall not perform any Additional
Services until receiving prior written authorization (in the form of a written
change order if Contracting Party is a contractor performing the Services) from
the Contract Officer, or assigned designee, incorporating therein any
adjustment in (i) the Contract Sum, and/or (ii) the time to perform this
Agreement, which said adjustments are subject to the written approval of
Contracting Party. It is expressly understood by Contracting Party that the
provisions of this Section shall not apply to the Services specifically set forth
in the Scope of Services or reasonably contemplated therein. It is specifically
understood and agreed that oral requests and/or approvals of Additional
Services shall be barred and are unenforceable. Failure of Contracting Party
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to secure the Contract Officer’s, or assigned designee’s written authorization
for Additional Services shall constitute a waiver of any and all right to
adjustment of the Contract Sum or time to perform this Agreement, whether
by way of compensation, restitution, quantum meruit, or the like, for
Additional Services provided without the appropriate authorization from the
Contract Officer, or assigned designee. Compensation for properly
authorized Additional Services shall be made in accordance with Section 2.3
of this Agreement.
1.8Special Requirements. Additional terms and conditions of this
Agreement, if any, which are made a part hereof are set forth in “Exhibit D”
(the “Special Requirements”), which is incorporated herein by this reference
and expressly made a part hereof. In the event of a conflict between the
provisions of the Special Requirements and any other provisions of this
Agreement, the provisions of the Special Requirements shall govern.
2.COMPENSATION.
2.1Contract Sum. For the Services rendered pursuant to this
Agreement, Contracting Party shall be compensated in accordance with
“Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed
One Hundred Eighteen Thousand Eight Hundred Sixty Dollars ($118,860.00)
for the life of the Agreement, encompassing the initial one year and six months
and an additional two year extended term. (the “Contract Sum”), except as
provided in Section 1.7. The method of compensation set forth in the
Schedule of Compensation may include a lump sum payment upon
completion, payment in accordance with the percentage of completion of the
Services, payment for time and materials based upon Contracting Party’s rate
schedule, but not exceeding the Contract Sum, or such other reasonable
methods as may be specified in the Schedule of Compensation. The Contract
Sum shall include the attendance of Contracting Party at all project meetings
reasonably deemed necessary by Authority; Contracting Party shall not be
entitled to any additional compensation for attending said meetings.
Compensation may include reimbursement for actual and necessary
expenditures for reproduction costs, transportation expense, telephone
expense, and similar costs and expenses when and if specified in the Schedule
of Compensation. Regardless of the method of compensation set forth in the
Schedule of Compensation, Contracting Party’s overall compensation shall not
exceed the Contract Sum, except as provided in Section 1.7 of this
Agreement.
2.2Method of Billing & Payment. Any month in which Contracting
Party wishes to receive payment, Contracting Party shall submit to Authority
an invoice for Services rendered prior to the date of the invoice. Such invoice
shall describe the timeframe for property management services rendered and
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reference the scope of services detailed in EXHIBIT A. Such invoice shall
contain a certification by a principal member of Contracting Party specifying
that the payment requested is for Services performed in accordance with the
terms of this Agreement. Upon approval in writing by the Contract Officer, or
assigned designee, and subject to retention pursuant to Section 8.3,
Authority will pay Contracting Party for all items stated thereon which are
approved by Authority pursuant to this Agreement no later than thirty
(30) days after invoices are received by the City’s Finance Department.
2.3Compensation for Additional Services. Additional Services
approved in advance by the Contract Officer, or assigned designee, pursuant
to Section 1.7 of this Agreement shall be paid for in an amount agreed to in
writing by both Authority and Contracting Party in advance of the Additional
Services being rendered by Contracting Party. Any compensation for
Additional Services amounting to five percent (5%) or less of the Contract
Sum may be approved by the Contract Officer, or assigned designee. Any
greater amount of compensation for Additional Services must be approved by
the La Quinta City Council (as the Authority Board of Directors), the City
Manager, or Department Director, depending upon City laws, regulations,
rules and procedures concerning public contracting. Under no circumstances
shall Contracting Party receive compensation for any Additional Services
unless prior written approval for the Additional Services is obtained from the
Contract Officer, or assigned designee, pursuant to Section 1.7 of this
Agreement.
3.PERFORMANCE SCHEDULE.
3.1Time of Essence. Time is of the essence in the performance of
this Agreement. If the Services not completed in accordance with the
Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is
understood that the Authority will suffer damage.
3.2Schedule of Performance. All Services rendered pursuant to this
Agreement shall be performed diligently and within the time period
established in “Exhibit C” (the “Schedule of Performance”). Extensions to the
time period specified in the Schedule of Performance may be approved in
writing by the Contract Officer, or assigned designee.
3.3Force Majeure. The time period specified in the Schedule of
Performance 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 Contracting
Party, including, but not restricted to, acts of God or of the public enemy,
fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes,
freight embargoes, acts of any governmental agency other than Authority,
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and unusually severe weather, if Contracting Party shall within ten (10) days
of the commencement of such delay notify the Contract Officer, or assigned
designee, in writing of the causes of the delay. The Contract Officer, or
assigned designee, 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 the Contract Officer’s judgment such delay is justified, and the
Contract Officer’s determination, or assigned designee, shall be final and
conclusive upon the parties to this Agreement. Extensions to time period in
the Schedule of Performance which are determined by the Contract Officer, or
assigned designee, to be justified pursuant to this Section shall not entitle
the Contracting Party to additional compensation in excess of the Contract
Sum.
3.4 Term. Unless earlier terminated in accordance with the provisions
in Article 8.0 of this Agreement, the term of this agreement shall commence
on January 1, 2021, and terminate on June 30, 2022 (“Initial Term”). This
Agreement may be extended for RQHDGGLWLRQDOWZR \HDUWHUPupon
mutual agreement by both parties (“Extended Term”).
4.COORDINATION OF WORK.
4.1 Representative of Contracting Party. The following principals of
Contracting Party (“Principals”) are hereby designated as being the principals
and representatives of Contracting Party authorized to act in its behalf with
respect to the Services specified herein and make all decisions in connection
therewith:
(a)James Joffe, President
Tel No. 714-974-0397
E-mail: jim@jandhmgt.com
(b)7KRPDV3DFHOOL9LFH
3UHVLGHQWRI2SHUDWLRQV
Tel No. 714-974-3097
Email:thomas@jandhmgmt.com
It is expressly understood that the experience, knowledge, capability,
and reputation of the foregoing Principals were a substantial inducement for
Authority to enter into this Agreement. Therefore, the foregoing Principals
shall be responsible during the term of this Agreement for directing all
activities of Contracting Party and devoting sufficient time to personally
supervise the Services hereunder. For purposes of this Agreement, the
foregoing Principals may not be changed by Contracting Party and no other
personnel may be assigned to perform the Services required hereunder
without the express written approval of Authority.
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4.2 Contract Officer. The “Contract Officer”, otherwise known as
Gilbert Villalpando, Assistant to the City Manager or assigned
designee may be designated in writing by the City Manager as the Authority’s
Executive Director. It shall be Contracting Party’s responsibility to assure that
the Contract Officer, or assigned designee, is kept informed of the progress
of the performance of the Services, and Contracting Party shall refer any
decisions, that must be made by Authority to the Contract Officer, or
assigned designee . Unless otherwise specified herein, any approval of
Authority required hereunder shall mean the approval of the Contract Officer,
or assigned designee. The Contract Officer, or assigned designee, shall
have authority to sign all documents on behalf of Authority required hereunder
to carry out the terms of this Agreement.
4.3 Prohibition Against Subcontracting or Assignment. The
experience, knowledge, capability, and reputation of Contracting Party, its
principals, and its employees were a substantial inducement for Authority to
enter into this Agreement. Except as set forth in this Agreement, Contracting
Party shall not contract or subcontract with any other entity to perform in
whole or in part the Services required hereunder without the express written
approval of Authority. In addition, neither this Agreement nor any interest
herein may be transferred, assigned, conveyed, hypothecated, or
encumbered, voluntarily or by operation of law, without the prior written
approval of Authority. Transfers restricted hereunder shall include the transfer
to any person or group of persons acting in concert of more than twenty five
percent (25%) of the present ownership and/or control of Contracting Party,
taking all transfers into account on a cumulative basis. Any attempted or
purported assignment or contracting or subcontracting by Contracting Party
without Authority’s express written approval shall be null, void, and of no
effect. No approved transfer shall release Contracting Party of any liability
hereunder without the express consent of Authority.
4.4 Independent Contractor. Neither City nor Authority, nor any of
their employees shall have any control over the manner, mode, or means by
which Contracting Party, its agents, or its employees, perform the Services
required herein, except as otherwise set forth herein. City and Authority shall
have no voice in the selection, discharge, supervision, or control of Contracting
Party’s employees, servants, representatives, or agents, or in fixing their
number or hours of service. Contracting Party shall perform all Services
required herein as an independent contractor of City and Authority, and shall
remain at all times as to City and Authority a wholly independent contractor
with only such obligations as are consistent with that role. Contracting Party
shall not at any time or in any manner represent that it or any of its agents
or employees are agents or employees of City or Authority. City and Authority
shall not in any way or for any purpose become or be deemed to be a partner
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of Contracting Party in its business or otherwise or a joint venture or a member
of any joint enterprise with Contracting Party. Contracting Party shall have
no power to incur any debt, obligation, or liability on behalf of City or
Authority. Contracting Party shall not at any time or in any manner represent
that it or any of its agents or employees are agents or employees of City or
Authority. Except for the Contract Sum paid to Contracting Party as provided
in this Agreement, City and Authority shall not pay salaries, wages, or other
compensation to Contracting Party for performing the Services hereunder.
City and Authority shall not be liable for compensation or indemnification to
Contracting Party for injury or sickness arising out of performing the Services
hereunder. Notwithstanding any other City, state, or federal policy, rule,
regulation, law, or ordinance to the contrary, Contracting Party and any of its
employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to any compensation,
benefit, or any incident of employment by City or Authority, including but not
limited to eligibility to enroll in the California Public Employees Retirement
System (“PERS”) as an employee of City or Authority, and entitlement to any
contribution to be paid by City or Authority for employer contributions and/or
employee contributions for PERS benefits. Contracting Party agrees to pay all
required taxes on amounts paid to Contracting Party under this Agreement,
and to indemnify and hold City and Authority harmless from any and all taxes,
assessments, penalties, and interest asserted against City or Authority by
reason of the independent contractor relationship created by this Agreement.
Contracting Party shall fully comply with the workers’ compensation laws
regarding Contracting Party and Contracting Party’s employees. Contracting
Party further agrees to indemnify and hold City and Authority harmless from
any failure of Contracting Party to comply with applicable workers’
compensation laws. City and Authority shall have the right to offset against
the amount of any payment due to Contracting Party under this Agreement
any amount due to City or Authority from Contracting Party as a result of
Contracting Party’s failure to promptly pay to City or Authority any
reimbursement or indemnification arising under this Section.
4.5 Identity of Persons Performing Work. Contracting Party
represents that it employs or will employ at its own expense all personnel
required for the satisfactory performance of any and all of the Services set
forth herein. Contracting Party represents that the Services required herein
will be performed by Contracting Party or under its direct supervision, and
that all personnel engaged in such work shall be fully qualified and shall be
authorized and permitted under applicable State and local law to perform such
tasks and services.
4.6 Authority Cooperation. Authority shall provide Contracting Party
with any plans, publications, reports, statistics, records, or other data or
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information pertinent to the Services to be performed hereunder which are
reasonably available to Contracting Party only from or through action by
Authority.
5. INSURANCE.
5.1 Insurance. Prior to the beginning of any Services under this
Agreement and throughout the duration of the term of this Agreement,
Contracting Party shall procure and maintain, at its sole cost and expense
(except as otherwise provided in the Scope of Services attached hereto as
Exhibit “A”), and submit concurrently with its execution of this Agreement,
policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”)
which is incorporated herein by this reference and expressly made a part
hereof.
5.2 Proof of Insurance. Contracting Party shall provide Certificate of
Insurance to Agency along with all required endorsements. Certificate of
Insurance and endorsements must be approved by Agency’s Risk Manager
prior to commencement of performance.
6. INDEMNIFICATION.
6.1 Indemnification. To the fullest extent permitted by law,
Contracting Party shall indemnify, protect, defend (with counsel selected by
Authority), and hold harmless City and Authority and any and all of their
officers, employees, agents, and volunteers as set forth in “Exhibit A” which
is incorporated herein by this reference and expressly made a part hereof.
7. RECORDS AND REPORTS.
7.1 Reports. Contracting Party shall periodically prepare and submit
to the Contract Officer, or assigned designee, such reports concerning
Contracting Party’s performance of the Services required by this Agreement
as the Contract Officer, or assigned designee, shall require. Contracting
Party hereby acknowledges that Authority is greatly concerned about the cost
of the Services to be performed pursuant to this Agreement. For this reason,
Contracting Party agrees that if Contracting Party becomes aware of any facts,
circumstances, techniques, or events that may or will materially increase or
decrease the cost of the Services contemplated herein or, if Contracting Party
is providing design services, the cost of the project being designed,
Contracting Party shall promptly notify the Contract Officer, or assigned
designee, of said fact, circumstance, technique, or event and the estimated
increased or decreased cost related thereto and, if Contracting Party is
providing design services, the estimated increased or decreased cost estimate
for the project being designed.
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7.2 Records. Contracting Party shall keep, and require any
subcontractors to keep, such ledgers, books of accounts, invoices, vouchers,
canceled checks, reports (including but not limited to payroll reports), studies,
or other documents relating to the disbursements charged to Authority and
the Services performed hereunder (the “Books and Records”), as shall be
necessary to perform the Services required by this Agreement and enable the
Contract Officer, or assigned designee, to evaluate the performance of such
Services. Any and all such Books and Records shall be maintained in
accordance with generally accepted accounting principles and shall be
complete and detailed. The Contract Officer, or assigned designee, shall
have full and free access to such Books and Records at all times during normal
business hours of Authority, including the right to inspect, copy, audit, and
make records and transcripts from such Books and Records. Such Books and
Records shall be maintained for a period of three (3) years following
completion of the Services hereunder, and Authority shall have access to such
Books and Records in the event any audit is required. In the event of
dissolution of Contracting Party’s business, custody of the Books and Records
may be given to Authority, and access shall be provided by Contracting Party’s
successor in interest. Under California Government Code Section 8546.7, if
the amount of public funds expended under this Agreement exceeds Ten
Thousand Dollars ($10,000.00), this Agreement shall be subject to the
examination and audit of the State Auditor, at the request of Authority or as
part of any audit of Authority, for a period of three (3) years after final
payment under this Agreement.
7.3 Ownership of Documents. All drawings, specifications, maps,
designs, photographs, studies, surveys, data, notes, computer files, reports,
records, documents, and other materials plans, drawings, estimates, test
data, survey results, models, renderings, and other documents or works of
authorship fixed in any tangible medium of expression, including but not
limited to, physical drawings, digital renderings, or data stored digitally,
magnetically, or in any other medium prepared or caused to be prepared by
Contracting Party, its employees, subcontractors, and agents in the
performance of this Agreement (the “Documents and Materials”) shall be the
property of Authority and shall be delivered to Authority upon request of the
Contract Officer, or assigned designee, or upon the expiration or termination
of this Agreement, and Contracting Party shall have no claim for further
employment or additional compensation as a result of the exercise by
Authority of its full rights of ownership use, reuse, or assignment of the
Documents and Materials hereunder. Any use, reuse or assignment of such
completed Documents and Materials for other projects and/or use of
uncompleted documents without specific written authorization by Contracting
Party will be at Authority’s sole risk and without liability to Contracting Party,
and Contracting Party’s guarantee and warranties shall not extend to such
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use, revise, or assignment. Contracting Party may retain copies of such
Documents and Materials for its own use. Contracting Party shall have an
unrestricted right to use the concepts embodied therein. All subcontractors
shall provide for assignment to Authority of any Documents and Materials
prepared by them, and in the event Contracting Party fails to secure such
assignment, Contracting Party shall indemnify City and Authority for all
damages resulting therefrom.
7.4 In the event Authority or any person, firm, or corporation
authorized by Authority reuses said Documents and Materials without written
verification or adaptation by Contracting Party for the specific purpose
intended and causes to be made or makes any changes or alterations in said
Documents and Materials, Authority hereby releases, discharges, and
exonerates Contracting Party from liability resulting from said change. The
provisions of this clause shall survive the termination or expiration of this
Agreement and shall thereafter remain in full force and effect.
7.5 Licensing of Intellectual Property. This Agreement creates a non-
exclusive and perpetual license for Authority to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, rights of reproduction, and other
intellectual property embodied in the Documents and Materials. Contracting
Party shall require all subcontractors, if any, to agree in writing that Authority
is granted a non-exclusive and perpetual license for the Documents and
Materials the subcontractor prepares under this Agreement. Contracting Party
represents and warrants that Contracting Party has the legal right to license
any and all of the Documents and Materials. Contracting Party makes no such
representation and warranty in regard to the Documents and Materials which
were prepared by design professionals other than Contracting Party or
provided to Contracting Party by Authority. Authority shall not be limited in
any way in its use of the Documents and Materials at any time, provided that
any such use not within the purposes intended by this Agreement shall be at
Authority’s sole risk.
7.6 Release of Documents. The Documents and Materials shall not be
released publicly without the prior written approval of the Contract Officer, or
assigned designee, or as required by law. Contracting Party shall not
disclose to any other entity or person any information regarding the activities
of Authority, except as required by law or as authorized by Authority.
7.7 Confidential or Personal Identifying Information. Contracting
Party covenants that all Authority data, data lists, trade secrets, documents
with personal identifying information, documents that are not public records,
draft documents, discussion notes, or other information, if any, developed or
received by Contracting Party or provided for performance of this Agreement
are deemed confidential and shall not be disclosed by Contracting Party to any
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person or entity without prior written authorization by Authority or unless
required by law. Authority shall grant authorization for disclosure if required
by any lawful administrative or legal proceeding, court order, or similar
directive with the force of law. All Authority data, data lists, trade secrets,
documents with personal identifying information, documents that are not
public records, draft documents, discussions, or other information shall be
returned to Authority upon the termination or expiration of this Agreement.
Contracting Party’s covenant under this section shall survive the termination
or expiration of this Agreement.
8. ENFORCEMENT OF AGREEMENT.
8.1 California Law. This Agreement shall be interpreted, construed,
and governed both as to validity and to performance of the parties in
accordance with the 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 Contracting
Party covenants and agrees to submit to the personal jurisdiction of such court
in the event of such action.
8.2 Disputes. In the event of any dispute arising under this
Agreement, the injured party shall notify the injuring party in writing of its
contentions by submitting a claim therefore. The injured party shall continue
performing its obligations hereunder so long as the injuring party commences
to cure such default within ten (10) days of service of such notice and
completes the cure of such default within forty-five (45) days after service of
the notice, or such longer period as may be permitted by the Contract Officer,
or assigned designee; provided that if the default is an immediate danger to
the health, safety, or general welfare, Authority may take such immediate
action as Authority deems warranted. Compliance with the provisions of this
Section shall be a condition precedent to termination of this Agreement for
cause and to any legal action, and such compliance shall not be a waiver of
any party’s right to take legal action in the event that the dispute is not cured,
provided that nothing herein shall limit Authority’s right to terminate this
Agreement without cause pursuant to this Article 8.0. During the period of
time that Contracting Party is in default, Authority shall hold all invoices and
shall, when the default is cured, proceed with payment on the invoices. In
the alternative, Authority may, in its sole discretion, elect to pay some or all
of the outstanding invoices during any period of default.
8.3 Retention of Funds. Authority may withhold from any monies
payable to Contracting Party sufficient funds to compensate Authority for any
losses, costs, liabilities, or damages it reasonably believes were suffered by
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Authority due to the default of Contracting Party in the performance of the
Services required by this Agreement.
8.4 Waiver. No delay or omission in the exercise of any right or
remedy of a non-defaulting party on any default shall impair such right or
remedy or be construed as a waiver. Authority’s consent or approval of any
act by Contracting Party requiring Authority’s consent or approval shall not be
deemed to waive or render unnecessary Authority’s consent to or approval of
any subsequent act of Contracting Party. 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.
8.5 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.
8.6 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 declaratory or injunctive relief, or
to obtain any other remedy consistent with the purposes of this Agreement.
8.7 Termination Prior To Expiration of Term. This Section shall govern
any termination of this Agreement, except as specifically provided in the
following Section for termination for cause. Authority reserves the right to
terminate this Agreement at any time, with or without cause, upon sixty
(60) days’ written notice to Contracting Party. Upon receipt of any notice of
termination, Contracting Party shall immediately cease all Services hereunder
except such as may be specifically approved by the Contract Officer, or
assigned designee. Contracting Party 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, or assigned designee, thereafter
in accordance with the Schedule of Compensation or such as may be approved
by the Contract Officer, or assigned designee, except amounts held as a
retention pursuant to this Agreement.
8.8 Termination for Default of Contracting Party. If termination is due
to the failure of Contracting Party to fulfill its obligations under this Agreement,
Contracting Party shall vacate any City- or Authority-owned property which
Contracting Party is permitted to occupy hereunder and Authority may, after
compliance with the provisions of Section 8.2, take over the Services and
prosecute the same to completion by contract or otherwise, and Contracting
-13-
Party shall be liable to the extent that the total cost for completion of the
Services required hereunder exceeds the compensation herein stipulated
(provided that Authority shall use reasonable efforts to mitigate such
damages), and Authority may withhold any payments to Contracting Party for
the purpose of setoff or partial payment of the amounts owed Authority.
8.9 Attorneys’ Fees. If either party to this Agreement is required to
initiate or defend or made a party to any action or proceeding in any way
connected with this Agreement, the prevailing party in such action or
proceeding, in addition to any other relief which may be granted, whether
legal or equitable, shall be entitled to reasonable attorneys’ fees; provided,
however, that the attorneys’ fees awarded pursuant to this Section shall not
exceed the hourly rate paid by Authority for legal services multiplied by the
reasonable number of hours spent by the prevailing party in the conduct of
the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and
in addition a party entitled to attorneys’ fees shall be entitled to all other
reasonable costs for investigating such action, taking depositions and
discovery, and all other necessary costs the court allows which are incurred in
such litigation. All such fees shall be deemed to have accrued on
commencement of such action and shall be enforceable whether or not such
action is prosecuted to judgment. The court may set such fees in the same
action or in a separate action brought for that purpose.
9. AUTHORITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
9.1 Non-liability of Authority Officers and Employees. No officer,
official, employee, agent, representative, or volunteer of Authority or City shall
be personally liable to Contracting Party, or any successor in interest, in the
event or any default or breach by Authority or for any amount which may
become due to Contracting Party or to its successor, or for breach of any
obligation of the terms of this Agreement.
9.2 Conflict of Interest. Contracting Party covenants that neither it,
nor any officer or principal of it, has or shall acquire any interest, directly or
indirectly, which would conflict in any manner with the interests of Authority
or which would in any way hinder Contracting Party’s performance of the
Services under this Agreement. Contracting Party further covenants that in
the performance of this Agreement, no person having any such interest shall
be employed by it as an officer, employee, agent, or subcontractor without
the express written consent of the Contract Officer, or assigned designee.
Contracting Party agrees to at all times avoid conflicts of interest or the
appearance of any conflicts of interest with the interests of Authority in the
performance of this Agreement.
-14-
No officer or employee of Authority shall have any financial interest,
direct or indirect, in this Agreement nor shall any such officer or employee
participate in any decision relating to this Agreement which effects his financial
interest or the financial interest of any corporation, partnership or association
in which he is, directly or indirectly, interested, in violation of any State statute
or regulation. Contracting Party 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.
9.3 Covenant against Discrimination. Contracting Party 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 any
impermissible classification including, but not limited to, race, color, creed,
religion, sex, marital status, sexual orientation, national origin, or ancestry in
the performance of this Agreement. Contracting Party shall take affirmative
action to ensure that applicants are employed and that employees are treated
during employment without regard to their race, color, creed, religion, sex,
marital status, sexual orientation, national origin, or ancestry.
10. MISCELLANEOUS PROVISIONS.
10.1 Notice. Any notice, demand, request, consent, approval, or
communication either party desires or is required to give the other party or
any other person shall be in writing and either served personally or sent by
prepaid, first-class mail to the address set forth below. Either party may
change its address by notifying the other party of the change of address in
writing. Notice shall be deemed communicated forty-eight (48) hours from
the time of mailing if mailed as provided in this Section.
To Authority:
LA QUINTA HOUSING AUTHORITY
CITY OF LA QUINTA
Attention: Gilbert Villalpando,
Assistant to the City Manger
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:
J & H Asset Property Mgt., Inc.
Attn. James Joffe, President
22880 Savi Ranch Parkway
Yorba Linda, CA 92887
[see also Exhibit A for Notices] [see also Exhibit A for Notices]
10.2 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed
for or against either party by reason of the authorship of this Agreement or
any other rule of construction which might otherwise apply.
-15-
10.3 Section Headings and Subheadings. The section headings and
subheadings contained in this Agreement are included for convenience only
and shall not limit or otherwise affect the terms of this Agreement.
10.4 Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original, and such counterparts shall
constitute one and the same instrument.
10.5 Integrated Agreement. This Agreement including the exhibits
hereto is the entire, complete, and exclusive expression of the understanding
of the parties. It is understood that there are no oral agreements between
the parties hereto affecting this Agreement and this Agreement supersedes
and cancels any and all previous negotiations, arrangements, agreements,
and understandings, if any, between the parties, and none shall be used to
interpret this Agreement.
10.6 Amendment. No amendment to or modification of this Agreement
shall be valid unless made in writing and approved by Contracting Party and
by the City Council of City as the Authority Board of Directors. The parties
agree that this requirement for written modifications cannot be waived and
that any attempted waiver shall be void.
10.7 Severability. In the event that any one or more of the articles,
phrases, sentences, clauses, paragraphs, or sections contained in this
Agreement shall be declared invalid or unenforceable, such invalidity or
unenforceability shall not affect any of the remaining articles, 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 unless the invalid provision is so material that its
invalidity deprives either party of the basic benefit of their bargain or renders
this Agreement meaningless.
10.8 Unfair Business Practices Claims. In entering into this Agreement,
Contracting Party offers and agrees to assign to Authority all rights, title, and
interest in and to all causes of action it may have under Section 4 of the
Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2,
(commencing with Section 16700) of Part 2 of Division 7 of the Business and
Professions Code), arising from purchases of goods, services, or materials
related to this Agreement. This assignment shall be made and become
effective at the time Authority renders final payment to Contracting Party
without further acknowledgment of the parties.
10.9 No Third-Party Beneficiaries. With the exception of the City and
specific provisions set forth in this Agreement, there are no intended third-
-16-
party beneficiaries under this Agreement and no such other third parties shall
have any rights or obligations hereunder.
10.10Authority. The persons executing this Agreement on behalf of
each of the parties hereto represent and warrant that (i) such party is duly
organized and existing, (ii) they are duly authorized to execute and deliver
this Agreement on behalf of said party, (iii) by so executing this Agreement,
such party is formally bound to the provisions of this Agreement, and (iv) that
entering into this Agreement does not violate any provision of any other
Agreement to which said party is bound. This Agreement shall be binding
upon the heirs, executors, administrators, successors, and assigns of the
parties.
[SIGNATURES ON FOLLOWING PAGE]
Page 10 - Exhibit A
assigns and may not be assigned by Agent without the prior written
consent of the Owner.
G. The drafting, execution and delivery of this Agreement by the
parties have been induced by no representations, statements,
warranties, or agreements other than those expressed in it. This
Agreement embodies the entire understanding of the parties, and
there are no further or other agreements or understandings,
written or oral, in effect between the parties relating to the subject
matter of it unless expressly referred to in this Agreement. This
Agreement may not be modified unless such modification is in
writing and signed by both parties to this Agreement.
H. Whenever legal assistance is required or used for such matters as
enforcing the collection of rents or eviction proceedings, such action
shall be made through legal counsel designated by Agent based on
a pre -approved list of legal counsel providers at rates approved by
Owner for such collections or evictions proceedings. With respect
to other legal matters, Owner shall be consulted and give its prior
written consent as to selection of legal counsel, authorized rates,
and general legal action.
Any notice required under the terms herein shall be deemed. given,
if delivered in person or by e-mail delivery with confirmation of
receipt by the intended recipient party, or within 15 days upon the
placing of it in the United States Mail, postage prepaid, and
addressed or otherwise actually delivered to the address designated
below (after Paragraph III.J below). Either party to this Agreement
may change the address at which it receives written notices by so
notifying the other party in writing.
J. Agent is an equal opportunity non-discriminatory employer. Agent
and Owner each mutually agree that there shall be no
discrimination against or segregation of any person or group of
persons on account of race, color, religion, creed, sex or national
origin, or any other legally protected classification under federal,
state, or local law, in leasing, transferring use occupancy, tenure
or enjoyment of the Property nor practices of discrimination or
segregation with reference to the selection, location number, use or
occupancy of tenants.
Agent Initials '�K Owner Initials
Exhibit B
Page 1 of 1
Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services, provided for
in Section 2.3 of this Agreement, the maximum total compensation to be paid
to Contracting Party under this Agreement is not to exceed One Hundred
Eighteen Thousand Eight Hundred Sixty Dollars ($118,860.00) (“Contract
Sum”). The Contract Sum shall be paid to Contracting Party in installment
payments made on a monthly basis and in an amount identified in Contracting
Party’s schedule of compensation summarized below for the work tasks
performed and properly invoiced by Contracting Party in conformance with
Section 2.2 of this Agreement.
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Exhibit C
Page 1 of 1
Exhibit C
Schedule of Performance
Contracting Party shall complete all services identified in the Scope of
Services, Exhibit A of this Agreement, in accordance with the Project
Schedule, attached hereto and incorporated herein by this reference.
Exhibit D
Page 1 of 1
Exhibit D
Special Requirements
None
Exhibit E
Page 1 of 6
Exhibit E
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of
this Agreement, the following policies shall be maintained and kept in full force
and effect providing insurance with minimum limits as indicated below and
issued by insurers with A.M. Best ratings of no less than A-VI:
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence)
$2,000,000 (general aggregate)
Must include the following endorsements :
General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Personal Auto Declaration Page if applicable
Errors and Omissions Liability
$1,000,000 (per claim and aggregate)
Workers’ Compensation
(per statutory requirements)
Must include the following endorsements :
Workers Compensation with Waiver of Subrogation
Workers Compensation Declaration of Sole Proprietor if applicable
Contracting Party shall procure and maintain, at its cost, and submit
concurrently with its execution of this Agreement, Commercial General
Liability insurance against all claims for injuries against persons or damages
to property resulting from Contracting Party’s acts or omissions rising out of
or related to Contracting Party’s performance under this Agreement. The
insurance policy shall contain a severability of interest clause providing that
the coverage shall be primary for losses arising out of Contracting Party’s
performance hereunder and neither City nor Authority, nor their insurers shall
be required to contribute to any such loss. An endorsement evidencing the
foregoing and naming the City, Authority, and their officers and employees as
additional insured (on the Commercial General Liability policy only) must be
submitted concurrently with the execution of this Agreement and approved by
Authority prior to commencement of the services hereunder.
Exhibit E
Page 2 of 6
Contracting Party shall carry automobile liability insurance of
$1,000,000 per accident against all claims for injuries against persons or
damages to property arising out of the use of any automobile by Contracting
Party, its officers, any person directly or indirectly employed by Contracting
Party, any subcontractor or agent, or anyone for whose acts any of them may
be liable, arising directly or indirectly out of or related to Contracting Party’s
performance under this Agreement. If Contracting Party or Contracting
Party’s employees will use personal autos in any way on this project,
Contracting Party shall provide evidence of personal auto liability coverage for
each such person. The term “automobile” includes, but is not limited to, a
land motor vehicle, trailer or semi-trailer designed for travel on public roads.
The automobile insurance policy shall contain a severability of interest clause
providing that coverage shall be primary for losses arising out of Contracting
Party’s performance hereunder and neither City nor Authority, nor their
insurers shall be required to contribute to such loss.
Professional Liability or Errors and Omissions Insurance as
appropriate shall be written on a policy form coverage specifically designed to
protect against acts, errors or omissions of the Contracting Party and “Covered
Professional Services” as designated in the policy must specifically include
work performed under this agreement. The policy limit shall be no less than
$1,000,000 per claim and in the aggregate. The policy must “pay on behalf
of” the insured and must include a provision establishing the insurer’s duty to
defend. The policy retroactive date shall be on or before the effective date of
this agreement.
Contracting Party shall carry Workers’ Compensation Insurance in
accordance with State Worker’s Compensation laws with employer’s liability
limits no less than $1,000,000 per accident or disease.
If coverage is maintained on a claims-made basis, Contracting Party shall
maintain such coverage for an additional period of three (3) years following
termination of the contract.
The Authority will bear the cost of maintaining the Workers’ Compensation
Insurance coverage required herein, as set forth in Section I(G) of Exhibit A.
Contracting Party shall provide written notice to Authority within ten
(10) working days if: (1) any of the required insurance policies is terminated;
(2) the limits of any of the required polices are reduced; or (3) the deductible
or self-insured retention is increased. In the event any of said policies of
insurance are cancelled, Contracting Party shall, prior to the cancellation date,
submit new evidence of insurance in conformance with this Exhibit to the
Contract Officer. The procuring of such insurance or the delivery of policies
Exhibit E
Page 3 of 6
or certificates evidencing the same shall not be construed as a limitation of
Contracting Party’s obligation to indemnify City, Authority, their officers,
employees, contractors, subcontractors, or agents.
E.2 Remedies. In addition to any other remedies Authority may have if
Contracting Party fails to provide or maintain any insurance policies or policy
endorsements to the extent and within the time herein required, Authority
may, at its 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 Contracting Party to stop work under this Agreement
and/or withhold any payment(s) which become due to Contracting Party
hereunder until Contracting Party demonstrates compliance with the
requirements hereof.
c. Terminate this Agreement.
Exercise any of the above remedies, however, is an alternative to
any other remedies Authority may have. The above remedies are not the
exclusive remedies for Contracting Party’s failure to maintain or secure
appropriate policies or endorsements. Nothing in this Section E.2 shall be
construed as limiting in any way the extent to which Contracting Party may
be held responsible for payments of damages to persons or property resulting
from Contracting Party’s or its subcontractors’ performance of work under this
Agreement.
E.3 General Conditions Pertaining to Provisions of Insurance Coverage
by Contracting Party. Contracting Party and Authority agree to the following
with respect to insurance provided by Contracting Party:
Contracting Party agrees to have its insurer endorse the third
party general liability coverage required herein to include as additional
insureds City, Authority, their officials, employees, and agents, using standard
ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting
Party also agrees to require all contractors, and subcontractors to do likewise.
No liability insurance coverage provided to comply with this
Agreement shall prohibit Contracting Party, or Contracting Party’s employees,
or agents, from waiving the right of subrogation prior to a loss.
All insurance coverage and limits provided by Contracting Party
and available or applicable to this Agreement are intended to apply to the full
extent of the policies. Nothing contained in this Agreement or any other
Exhibit E
Page 4 of 6
agreement relating to Authority or its operations limits the application of such
insurance coverage.
None of the coverages required herein will be in compliance with
these requirements if they include any limiting endorsement of any kind that
has not been first submitted to Authority and approved of in writing.
All coverage types and limits required are subject to approval,
modification and additional requirements by the Authority, as the need arises.
Contracting Party shall not make any reductions in scope of coverage (e.g.
elimination of contractual liability or reduction of discovery period) that may
affect Authority’s protection without Authority’s prior written consent.
Proof of compliance with these insurance requirements, consisting
of certificates of insurance evidencing all the coverages required and an
additional insured endorsement to Contracting Party’s general liability policy,
shall be delivered to Authority at or prior to the execution of this Agreement.
In the event such proof of any insurance is not delivered as required, or in the
event such insurance is canceled at any time and no replacement coverage is
provided, Authority has the right, but not the duty, to obtain any insurance it
deems necessary to protect its interests under this or any other agreement
and to pay the premium. Any premium so paid by Authority shall be charged
to and promptly paid by Contracting Party or deducted from sums due
Contracting Party, at Authority option.
It is acknowledged by the parties of this agreement that all
insurance coverage required to be provided by Contracting Party or any
subcontractor, is intended to apply first and on a primary, non-contributing
basis in relation to any other insurance or self-insurance available to Authority.
Contracting Party agrees to ensure that subcontractors, and any
other party involved with the project that is brought onto or involved in the
project by Contracting Party, provide the same minimum insurance coverage
required of Contracting Party. Contracting Party agrees to monitor and review
all such coverage and assumes all responsibility for ensuring that such
coverage is provided in conformity with the requirements of this section.
Contracting Party agrees that upon request, all agreements with
subcontractors and others engaged in the project will be submitted to
Authority for review.
Contracting Party agrees not to self-insure or to use any self-
insured retentions or deductibles on any portion of the insurance required
herein (with the exception of professional liability coverage, if required) and
further agrees that it will not allow any contractor, subcontractor, Architect,
Engineer or other entity or person in any way involved in the performance of
Exhibit E
Page 5 of 6
work on the project contemplated by this agreement to self-insure its
obligations to Authority. If Contracting Party’s existing coverage includes a
deductible or self-insured retention, the deductible or self-insured retention
must be declared to the Authority. At that time the Authority shall review
options with the Contracting Party, which may include reduction or elimination
of the deductible or self-insured retention, substitution of other coverage, or
other solutions.
The Authority reserves the right at any time during the term of
this Agreement to change the amounts and types of insurance required by
giving the Contracting Party ninety (90) days advance written notice of such
change. If such change results in substantial additional cost to the Contracting
Party, the Authority will negotiate additional compensation proportional to the
increased benefit to Authority.
For purposes of applying insurance coverage only, this Agreement
will be deemed to have been executed immediately upon any party hereto
taking any steps that can be deemed to be in furtherance of or towards
performance of this Agreement.
Contracting Party acknowledges and agrees that any actual or
alleged failure on the part of Authority to inform Contracting Party of non-
compliance with any insurance requirement in no way imposes any additional
obligations on Authority nor does it waive any rights hereunder in this or any
other regard.
Contracting Party will renew the required coverage annually as
long as Authority, or its employees or agents face an exposure from operations
of any type pursuant to this agreement. This obligation applies whether the
agreement is canceled or terminated for any reason. Termination of this
obligation is not effective until Authority executes a written statement to that
effect.
Contracting Party shall provide proof that policies of insurance
required herein expiring during the term of this Agreement have been renewed
or replaced with other policies providing at least the same coverage. Proof
that such coverage has been ordered shall be submitted prior to expiration.
A coverage binder or letter from Contracting Party’s insurance agent to this
effect is acceptable. A certificate of insurance and an additional insured
endorsement is required in these specifications applicable to the renewing or
new coverage must be provided to Authority within five (5) days of the
expiration of coverages.
The provisions of any workers’ compensation or similar act will not
limit the obligations of Contracting Party under this agreement. Contracting
Exhibit E
Page 6 of 6
Party expressly agrees not to use any statutory immunity defenses under such
laws with respect to City, Authority, their employees, officials, and agents.
Requirements of specific coverage features, or limits contained in
this section are not intended as limitations on coverage, limits or other
requirements nor as a waiver of any coverage normally provided by any given
policy. Specific reference to a given coverage feature is for purposes of
clarification only as it pertains to a given issue and is not intended by any
party or insured to be limiting or all-inclusive.
These insurance requirements are intended to be separate and
distinct from any other provision in this Agreement and are intended by the
parties here to be interpreted as such.
The requirements in this Exhibit supersede all other sections and
provisions of this Agreement to the extent that any other section or provision
conflicts with or impairs the provisions of this Exhibit.
Contracting Party agrees to be responsible for ensuring that no
contract used by any party involved in any way with the project reserves the
right to charge City, Authority or Contracting Party for the cost of additional
insurance coverage required by this agreement. Any such provisions are to
be deleted with reference to City and Authority. It is not the intent of City or
Authority to reimburse any third party for the cost of complying with these
requirements. There shall be no recourse against City or Authority for
payment of premiums or other amounts with respect thereto.
Contracting Party agrees to provide immediate notice to Authority
of any claim or loss against Contracting Party arising out of the work
performed under this agreement. Authority assumes no obligation or liability
by such notice, but has the right (but not the duty) to monitor the handling of
any such claim or claims if they are likely to involve Authority.
[PAGE INTENTIONALLY BLANK]
City of La Quinta
HOUSING AUTHORITY 63(&,$/MEETING: March 16, 2021
STAFF REPORT
AGENDA TITLE: ADJUST BUDGET APPROPRIATIONS AND APPROVE
AGREEMENT FOR CONTRACT SERVICES WITH J&H ASSET PROPERTY
MANAGEMENT, INC. FOR RESIDENTIAL PROPERTY MANAGEMENT SERVICES AT
DUNE PALMS MOBILE ESTATES
RECOMMENDATION
Adjust budget appropriation and approve Agreement for Contract Services with
J&H Asset Property Management, Inc. for residential property management
services at Dune Palms Mobile Estates in an amount not to exceed $118,860;
and authorize the Executive Director to execute the agreement.
EXECUTIVE SUMMARY
x As part of the acquisition of the Dune Palms Mobile Estates (Park) at
46400 Dune Palms Road in La Quinta, the Housing Authority (Authority),
assumed the contract for the current property management firm, J&H
Asset Property Mgt., Inc. (J&H) in a commitment for a seamless transition
for park residents.
x To conclude the assumed contract and to remain in compliance with the
Authority’s contractual standards, a new agreement for management
services was drafted between the Authority and J&H.
x The assumed contract is on a month-to-month basis and will be converted
to an initial eighteen (18) month term with an optional extension of two
(2) years through June 30, 2024.
FISCAL IMPACT
J&H would provide residential property management services for a monthly fee
as detailed below. The total contract cost is for a not-to-exceed amount of
$118,860 for the initial contract term of 18 months and an optional extension
of two years is available, with costs subject to a potential increase of 3% each
fiscal year.
BUSINESS SESSION ITEM NO.
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DE' D Ed&
365
If approved, a budget adjustment for Park revenues and expenses will be added
as follows:
Account Number/Name Revenue Expense
241-9104-42112, Dune Palms Rents $ 186,000
241-9104-60103, Professional
Services
$ 22,000
241-9104-60157, Rental Expenses $ 105,000
BACKGROUND/ANALYSIS
In June 2020, the City opened escrow for the acquisition of the Park as part of
the Settlement Agreement for an eminent domain case, City of La Quinta v.
Chin Family Properties Ltd. Partnership (Riverside County Superior Court Case
No. PSC1803284) as reported out during the City’s May 19, 2020 Council
meeting. During the due diligence process while escrow was opened, it was
deemed appropriate for the benefit of Park residents to retain the services of
the existing property management company. The City assumed the existing
contract for property management services through escrow and must now
formally contract with J&H to comply with contractual standards required of all
service providers. The City’s assumption of the J&H property management
contract expressly named the Authority as a third-party beneficiary with the
right to have the City’s assumption transferred to the Authority.
J&H has acted as property management for the Park since February 2006, and
has extensive experience in providing park management, including maintaining
all legally required State of California licensing and reporting, maintenance
requests from residents, rent collections, and facilitating operations for the
mobile home park.
On January 12, 2021, the Housing Commission discussed and approved the
recommended Scope of Services incorporated as Exhibit A of the Agreement
(Attachment 1). The initial term of the Agreement would be retroactive to
January 1, 2021and will expire on June 30, 2022, with an option to renew for
one two-year extension, beginning July 1, 2022, and expiring on June 30, 2024.
The City has the right to terminate the Agreement at any time with a 60-day
written notice.
The current fiscal year 2020/21 Housing Authority budget does not include
revenues or expenses for Dune Palms Mobile Estate operations. Budget
adjustments are needed to recognize these new operations which started on
January 1, 2021.
366
The Authority may elect to not approve this Agreement. However, staff does
not recommend this alternative due to the immediate need to maintain ongoing
services as well as their knowledge and experience working with the Park and
its residents.
Prepared by: Angela Ferreira, Management Analyst
Approved by: Jon McMillen, City Manager
Attachment: 1. Agreement for Contract Services
ALTERNATIVES
367