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2025-26 J&H Asset Property Management MOU Amend 1 - Dune Palms Mobile EstatesMEMORANDUM DATE: July 1, 2025 TO: Jon McMillen, City Manager FROM: Laurie McGinley, Management Specialist RE: J&H Asset Property Management Amendment No. 1 to MOU Please list the Contracting Party / Vendor Name, any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. 4Q!th Cv CALIFORNIA ✓ Authority to execute this aqreement is based upon: Approved by City Council on HA July 1, 2025 Consent 3 City Manager's signing authority provided under the City's Purchasing & Contracting Policy [Resolution No. 2023-008] for budget expenditures of $50,000 or less. City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for temporary employment positions. Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less. Bid Sole Source Procurement Method (one must apply): RFP ✓ n RFQ Select Source ❑ 3 written informal bids Cooperative Procurement Requesting department shall check and attach the items below as appropriate: Agreement payment will be charged to Account No.: 241-9104-60103 Agreement term: Start Date July 1, 2025 Amount of Agreement, Amendment, Change Order, etc.: End Date $ 39,620 June 30, 2026 .z. 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: myCOI compliant; exp: 9/25/2025 - MR Date: 7/1/2025 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) n Business License No. Expires: Requisition for a Purchase Order has been prepared (Agreements over $5,000) 18495 Calle Tampico I is Quinta, California 92253 I 760 717 1000 I www.laquintaca.gov AMENDMENT 1 TO MEMORANDUM OF UNDERSTANDING REGARDING AGREEMENT FOR CONTRACT SERVICES This Amendment No. 1 ("Amendment No. 1") to the Memorandum of Understanding Regarding Agreement for Contract Services ("MOU") is made and entered into as of July 1, 2025, by and between the La Quinta Housing Authority, a public body, corporate and politic ("Authority"), and J & H Asset Property Management, Inc., a California Limited Liability Corporation ("Contracting Party"). RECITALS A. WHEREAS, on October 21, 2024, the Parties entered into the MOU; and B. WHEREAS, the MOU memorializes the Parties' mutual intent to operate pursuant to the terms and conditions of that certain Agreement For Contract Services approved by the City Council of the City of La Quinta on March 16, 2021 (the "Agreement") as amended by that certain Amendment No. 1 to the Agreement entered into between the Parties on June 30, 2022; and C. WHEREAS, the MOU is set to terminate on June 30, 2025; and D. WHEREAS, the Authority and Contracting Party desire to extend the term of the MOU for an additional one (1) year term, as set forth herein; and E. WHEREAS, Authority and Contracting Party further desire to stipulate to a revision to Exhibit B to the Agreement as applied through the MOU, which sets forth the Schedule of Compensation for the Agreement, to reflect the revised compensation amounts as agreed upon. NOW THEREFORE, Authority and Contracting Party agree as follows: AGREEMENT 1. Extension of Term. The term of the MOU shall be extended for an additional one (1) year term, commencing on July 1, 2025, and expiring on June 30, 2026, unless terminated earlier as provided for in the MOU. 2. Amendment to Exhibit B — Schedule of Compensation. Exhibit B to the Agreement, as incorporated by reference in the MOU, is hereby revised and restated in its entirety as attached hereto as Exhibit A. 3. No Other Modifications. Except as specifically modified by this Amendment No. 1, all other terms and conditions of the MOU shall remain in full force and effect. 4. Counterparts. This Amendment No. 1 may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, Authority and Contracting Party have executed this Amendment as of the date set forth in the preamble, [SIGNATURES ON THE FOLLOWING PAGE] AMENDMENT 1 TO MEMORANDUM OF UNDERSTANDING REGARDING AGREEMENT FOR CONTRACT SERVICES LA QUINTA HOUSING AUTHORITY, J & H ASSET PROPERTY MANAGEMENT, a public body, corporate and politic McMILLEN, Executive Director & City Manager La Quinta, California ATTEST INC., a California Limited Liability Corporation SIGNED IN COUNTERPART JAMES JOFFE, President THOMAS PACELLI, Vice President of Operations / 1 2O2f MONIKA RADE', Authority Secretary & City Clerk La Quinta California APPROVED AS TO FORM WILLIAM H. IHRKE, Authority General Counsel & City Attorney City of La Quinta, California AMENDMENT 1 TO MEMORANDUM OF UNDERSTANDING REGARDING AGREEMENT FOR CONTRACT SERVICES LA QUINTA HOUSING AUTHORITY, J & H ASSET PROPERTY MANAGEMENT, a public body, corporate and politic SIGNED IN COUNTERPART INC., a California Limited Liability Corporation i JON McMILLEN, Executive Director & JME,$ JOFFE, > e is City Manager La Quinta, California ATTEST SIGNED IN COUNTERPART MONIKA RADEVA, Authority Secretary & City Clerk La Quinta California APPROVED AS TO FORM SIGNED IN COUNTERPARTY WILLIAM H. IHRKE, Authority General Counsel & City Attorney City of La Quinta, California AMENDMENT 1 TO MEMORANDUM OF UNDERSTANDING REGARDING AGREEMENT FOR CONTRACT SERVICES Exhibit A Revisions to 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 Niney-Three Thousand Seven Hundred Eighty Dollars ($193,780) ("Contract Sum") as detailed in the table below. 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 attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Fiscal Year Monthly Amount Management Fee Fiscal Year Amount 2020/21 $2,720 $16,320* (*six months only from January to June 2021) 2021/22 $2,720 $32,640 2022/23 $2,800 $33,600 2023/24 $2,900 $34,800 2024/25 $2,900 $34,800 2025/26 $3,260 $39,120 Fee Per Audit (1 audit per year) $500 5 audits total for a cumulative total of: $2,500 TOTAL CONTRACT AMOUNT $193,780 AMENDMENT 1 TO MEMORANDUM OF UNDERSTANDING REGARDING AGREEMENT FOR CONTRACT SERVICES CONSENT CALENDAR ITEM NO. 3 City of La Quinta HOUSING AUTHORITY SPECIAL MEE I INCD July 1, 2025 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING WITH J&H ASSET PROPERTY MANAGEMENT, INC FOR PROPERTY MANAGEMENT SERVICES AT DUNE PALMS MOBILE ESTATES RECOMMENDATION Approve Amendment No. 1 to the Memorandum of Understanding with J&H Asset Property Management, Inc. for property management services at Dune Palms Mobile Estates; and authorize the Executive Director to execute the amendment. EXECUTIVE SUMMARY • The La Quinta Housing Authority (Authority) has contracted with J&H Asset Property Management, Inc. (J&H) for property management services for the Dune Palms Mobile Estates (Park) since the Authority acquired the Park in 2021. • The current Memorandum of Understanding (MOU) with J&H for these services expires June 30, 2025. • Proposed Amendment No. 1 to the MOU, if approved, will extend the term of the MOU from July 1, 2025, through June 30, 2026; and will ensure continuity and consistency of services for the Park and its residents, as well as maintain compliance with California Department of Housing and Community Development (HCD) requirements. • On June 11, 2025, the Housing Commission reviewed and recommended the Authority approve the proposed Amendment No. 1 to the MOU. FISCAL IMPACT Estimated fiscal year 2025/26 costs under the proposed Amendment No. 1 to the MOU with J&H are not to exceed $39,620, based on a $3,260 monthly cost, and a $500 annual audit fee, for a total not to exceed amount of $193,780, as detailed in the table below. Funds are budgeted in the Authority's fiscal year 2025/26 Professional Services budget (Account No. 241-9104-60103). 13 Fiscal Year Monthly Amount Management Fee Fiscal Year Amount 2020/21 $2,720 $16,320* (*six months only from January to June 2021) 2021/22 $2,720 $32,640 2022/23 $2,800 $33,600 2023/24 $2,900 $34,800 2024/25 $2,900 $34,800 2025/26 $3,260 $39,120 Fee Per Audit (1 audit per year) $500 5 audits total for a cumulative total of: $2,500 TOTAL CONTRACT AMOUNT $193,780 BACKGROUND/ANALYSIS The Authority acquired the Park in 2021 and retained J&H as property manager to ensure a seamless transition for residents. J&H has provided consistent management services for the Park since February 2006, including maintaining all legally required California State licensing and reporting, maintenance requests from residents, rent collections, and facilitating operations for the Park. On March 16, 2021, the Authority approved an agreement with J&H for property management services, which expired June 30, 2024. In 2024, the Authority executed an MOU to continue the services through June 30, 2025. Proposed Amendment No. 1 to the MOU with J&H will extend the term through June 30, 2026; fiscal year compensation is detailed under the Fiscal Impact section of this report. The Authority may terminate the MOU at any time with a 30-day written notice. Extending property management for the Park with J&H will ensure continuity and consistency of services for its residents, as well as maintain compliance with HCD requirements. All other terms and conditions of the original agreement and MOU remain unchanged. ALTERNATIVES The Authority may elect not to approve the proposed Amendment No. 1 to the MOU, however, staff does not recommend this alternative due to the immediate need for these services. Prepared by: Approved by: Laurie McGinley, Management Specialist Gilbert Villalpando, Director of Business Unit and Housing Attachment: 1. Amendment No. 1 to MOU with J&H Asset Property Management, Inc. 14