2023-25 JC Desert Enterprise, Inc (Formerly LQ Palms) Realty Amendment 1 - Property Management ServicesMEMORANDUM
DATE: 05/29/2023
TO: Jon McMillen, City Manager
FROM: Reyna Camarena, Management Assistant
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RE: La Quinta Palms Realty - Amendment 1 - Property Management Services 2023-2025
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:
Jr L Approved by City Council on May 19, 2020
F-1_ City Manager's signing authority provided under the City's Purchasing Policy
[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 F-1. RFP F-1 RFQ E_ 3 written informal bids
QSole Source 1:1 Select Source Cooperative Procurement
Reauestina department shall check and attach the items below as auurouriate:
�✓ _ Agreement payment will be charged to Account No.: 214-9101-60103
Agreement term: Start Date July 1, 2023 End Date June 30, 2025
Amount of Agreement, Amendment, Change Order, etc.: $ 88,200.00
REMINDER; Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
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Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: On File in LF (LM) Date: 5/30/2023
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)
F-1_ Business License No. Expires:
❑_ Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH
LA QUINTA PALMS REALTY
This Amendment No. 1 ("Amendment I") to Agreement for Contract Services
("Agreement") is made and entered into as of the 30th day of June, 2023, ("Effective Date")
by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and
LA QUINTA PALMS REALTY ("Contracting Party").
RECITALS
WHEREAS, on or about July 1, 2020, the City and Contracting Party entered into
an Agreement to provide residential property management services, for a total not to
exceed amount of $126,000. The term of the Agreement expires on June 30, 2023 ("Initial
Term"); and
WHEREAS, pursuant to Section 3.4 Term, the City and Contracting Party mutually
agree to extend the term of the Agreement for 2 additional years, from July 1, 2023,
through June 30, 2025 ("Extended Term"); and
WHEREAS, the City and Contracting Party mutually agree to enforce the optional
additional compensation of $44,100 per year for fiscal years 2023/24 and 2024/25, as
listed in Exhibit B — Schedule of Compensation of the Agreement for the two additional
years of services for a combined total not to exceed Agreement amount of $214,200,
encompassing the Initial and Extended Terms.
NOW THEREFORE, in consideration of the mutual covenant herein contained, the
parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises
hereinafter contained, and for good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto agree as follows-
1 . Section 3.4 Term is amended to read as follows:
Unless earlier terminated in accordance with the provisions in Article 8.0 of this
Agreement, the term of this Agreement shall commence on July 1, 2020, and terminate
on June 30, 2023 ("Initial Term"). Amendment No. 1 extends this Agreement for two (2)
additional years from July 1, 2023, to June 30, 2025 ("Extended Term").
2. Exhibit B — Schedule of compensation is amended to read as listed in attached
Exhibit B, incorporated herewith by this reference.
In all other respects, the original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Contracting Party have executed this
Amendment No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA LA QUINTA PALMS REALTY
a California municipal corporation
;c':itVy
cMILLEN, City Manager
of La Quinta, California
Dated: 2--2
ATTEST:
MONIKA RADEV , City Jerk
City of La Quinta, California
APPROVED AS TO FORM.
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
Contracting Party
Tc C -
ROBIN CARA_f Yi Qs ner
Dated:
51 01.2 S
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 Two -Hundred Fourteen Thousand Two -Hundred
Dollars ($214,200) ("Contract Sum") during the Initial and Extended Terms of this
Agreement as detailed in the table below, comprised of not to exceed base monthly
amount of $3,500, or annual compensation of $42,000, for fiscal years 2020/21 through
2022/23, and not to exceed base monthly amount of $3,675, or annual compensation of
$44,100 (capturing a 5% base monthly amount increase), for fiscal years 2023/24 and
2024/25. The Contract Sum shall be paid to Contracting Party upon being properly
invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.
Year Monthly Base Annual Base
2020/ 2021 $ 3,500 $ 42,000
2021/ 2022 $ 3,500 $ 42,000
2022/ 2023 $3,500 $42,000
Initial 3-yr. Term Total $ 126,000
2023/ 2024 $ 3,675 $ 44,100
2024/ 2025 $ 3 675 44,100
Optional extension (2 years) $ 88,200
TOTAL Contract Sum not to exceed $214,200
BUSINESS SESSION ITEM NO. 1
City of La Quinta
HOUSING AUTHORITY SPECIAL MEETING: May 19, 2020
STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH LA
QUINTA PALMS REALTY FOR PROPERTY MANAGEMENT SERVICES
RECOMMENDATION
Approve an Agreement for Contract Services for property management
services with La Quinta Palms Realty in an amount not to exceed $42,000
annually for the first three years; and authorize the Executive Director to
execute the agreement.
EXECUTIVE SUMMARY
• La Quinta Palms Realty (LQPR) currently provides property management
services for the Housing Authority's (Authority) inventory of properties
that are provided to qualified low-income residents in the City of La
Quinta (City).
• The current contract with LQPR expires June 30, 2020.
• On February 14, 2020, a request for proposal (RFP) was posted on the
City website for residential property management services.
• Staff selected LQPR, the qualified firm has worked with the City for 16
years, providing excellent services.
• The Agreement for Contract Services (Agreement) would begin July 1,
2020, with an initial three-year term to expire on June 30, 2023.
• The Housing Commission (Commission) reviewed the Agreement at the
May 6, 2020 special Commission meeting and recommended the
Authority approve the contract.
FISCAL IMPACT
The annual cost is not -to -exceed $42,000 per year ($3,500 monthly). The
total contract cost is not -to -exceed $126,000 for the initial contract term of
three (3) years. Two extensions of one (1) year each are optional, with costs
subject to a potential 5% increase in total from the original annual fee,
amounting to a not -to -exceed amount of $44,100 per year ($3,675 monthly).
Funds are available in the Housing Authority budget (241-9101-60103,
Professional Services).
35
Cost summary for the services are as follows:
YEAR MONTHLY
BASE
2020/2021 1 $3,500
2021/2022 1 $3,500
2022/2023 1 $3,500
INITIAL 3-YEAR TERM
2023/2024 $3,675
ANNUAL
BASE
$42,000
$42,000
$42,000
$126,000
$44,100
2024/2025 $3,675 $44,100
OPTIONAL
EXTENSIONS
(2-YEARS)
TOTAL CONTRACT NOT
TO EXCEED
BACKGROUND/ANALYSIS
$88, 200
$214,200
In February 2020, staff solicited an RFP for residential property management
services and received one proposal from LQPR. During the RFP period, Staff
also conducted outreach to local vendors for their review and consideration;
Real Property Management, Abode Communities, Hyder Property
Management, and RPM Company.
LQPR is based out of La Quinta and has provided real estate and property
management services throughout the Coachella Valley since its establishment
in 1982. LQPR has provided professional residential property management
services to the City of La Quinta/Authority for 16 years.
Upon the Authority's approval, the initial term of this Agreement would begin
July 1, 2020 and expire on June 30, 2023, with an option to renew for two
extensions, each being one additional year (Attachment 1). The Authority has
the right to terminate the Agreement at any time with a 30-day written notice.
The Commission received staff's report during the May 6, 2020 meeting and
recommended the Authority approve the contract.
N0F±1%i1kTI:*
The Authority may elect to not approve this Agreement. However, staff does
not recommend this alternative due to the immediate need for these services
and limited response from other qualified firms.
Prepared by: Doug Kinley, Housing Specialist
Approved by: Jon McMillen, Executive Director
Attachment: 1. Agreement for Contract Services
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