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2025-27 JC Desert Enterprise, Inc (formerly LQ Palms Realty) AMEND 1 Property Mgmt Servicesn MEMORANDUM DATE: July 1, 2025 TO: Jon McMillen, City Manager FROM: Laurie McGinley, Management Specialist RE: JC Desert Enterprises - Amendment 2 to Property Mgmt Svcs FY 2025-27 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 (Pea CALIFORNIA ✓ Authority to execute this agreement is based upon: Approved by City Council on HA July 1, 2025 Consent 2 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. Procurement Method (one must apply): Bid RFP RFQ 3 written informal bids Sole Source Select Source n Cooperative Procurement ✓ Requesting department shall check and attach the items below as appropriate: Agreement payment will be charged to Account No.: 241-9101-60157 Agreement term: Start Date 7/1 /2025 Amount of Agreement, Amendment, Change Order, etc.: End Date $ 92,592 6/30/2027 .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: 10/15/2025 - MR Date: 7/1/2025 Bonds joriginals) 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) 18495 Calle Tampico I is Quinta, California 922531760.7TT7000 I www.laquintaca.gov AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES (JC DESERT ENTERPRISES INCORPORATED, formerly LA QUINTA PALMS REALTY) This Amendment No. 2 ("Amendment No. 2") to Agreement for Contract Services ("Agreement") is made and entered into as of the 1st day of July, 2025, ("Effective Date") by and between the LA QUINTA HOUSING AUTHORITY a public body, corporate and politic ("Authority"), and JC DESERT ENTERPRISES, INC., a California corporation, and d/b/a LA QUINTA PALMS REALTY, Inc. ("Contracting Party"). RECITALS WHEREAS, on or about July 1, 2020, the Authority and Contracting Party entered into an Agreement to provide residential property management services, with an initial term ending June 30, 2023 (the "Initial Term"); and WHEREAS, on or about November 1, 2022, the Authority executed an Assignment, Assumption, and Consent Agreement with JC Desert Enterprises, Inc. operating as d/b/a La Quinta Palms Realty, Inc., per its fictitious business name under Department of Real Estate License No. 02198183, who assumed all contractual obligations of the former La Quinta Palms Realty upon its dissolution; and WHEREAS, on or about June 30, 2023, the Authority and Contracting Party executed Amendment No. 1 to the Agreement, extending the term for two (2) years to June 30, 2025 ("First Extended Term"); and WHEREAS, Section 10.6 of the Agreement authorizes the Authority and Contracting Party to amend the Agreement upon mutual written approval; and WHEREAS, the Authority and Contracting Party now desire to extend the term of the Agreement for two (2) additional years, from July 1, 2025, through June 30, 2027 ("Second Extended Term"); and WHEREAS, the Authority and Contracting Party further desire to revise Exhibit B to the Agreement, which sets forth the Schedule of Compensation, to reflect the revised compensation amounts as agreed upon. 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: AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES 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 commenced on July 1, 2020, and was originally set to terminate on June 30, 2023 ("Initial Term"). This Agreement was extended via Amendment No. 1 to the Agreement for two (2) additional years from July 1, 2023, to June 30, 2025 ("First Extended Term"). This Agreement is further extended by Amendment No. 2 to the Agreement for two (2) additional years from July 1, 2025, to June 30, 2027 ("Second Extended Term"). 2. Exhibit B — Schedule of compensation is amended to read as listed in attached Exhibit A, incorporated herewith by this reference. In all other respects, the original Agreement and Amendment No. 1 shall remain in effect. This Amendment No. 2 may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 2 to the Agreement on the respective dates set forth below. LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic JON McMILLEN, Executive Director & City Manager La Quinta, California ATTEST MONIKA RADEVA, Authority Secretary & City Clerk La Quinta California APPROVED AS TO FORM WILLIAM H. IHRKE, Authority General Counsel & City Attorney La Quinta, California JC DESERT ENTERPRISES, INCORPORATED, a California Corporation, and d/b/a LA QUINTA PALMS REALTY SIGNED IN COUNTERPART ROBIN CARNEY, Owner AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES 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 commenced on July 1, 2020, and was originally set to terminate on June 30, 2023 ("Initial Term"). This Agreement was extended via Amendment No. 1 to the Agreement for two (2) additional years from July 1, 2023, to June 30, 2025 ("First Extended Term"). This Agreement is further extended by Amendment No. 2 to the Agreement for two (2) additional years from July 1, 2025, to June 30, 2027 ("Second Extended Term"). 2. Exhibit B — Schedule of compensation is amended to read as listed in attached Exhibit A, incorporated herewith by this reference. In all other respects, the original Agreement and Amendment No. 1 shall remain in effect. This Amendment No. 2 may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 2 to the Agreement on the respective dates set forth below. LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic SIGNED IN COUNTERPART JON McMILLEN, Executive Director & City Manager La Quinta, California ATTEST SIGNED IN COUNTERPART MONIKA RADEVA, Authority Secretary & City Clerk La Quinta California APPROVED AS TO FORM SIGNED IN COUNTERPART WILLIAM H. IHRKE, Authority General Counsel & City Attorney La Quinta, California JC DESERT ENTERPRISES, INCORPORATED, a California Corporation, and d/b/a LA QUINTA PALMS REALTY ROBIN CARNEY,` twner> AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES 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 commenced on July 1, 2020, and was originally set to terminate on June 30, 2023 ("Initial Term"). This Agreement was extended via Amendment No. 1 to the Agreement for two (2) additional years from July 1, 2023, to June 30, 2025 ("First Extended Term"). This Agreement is further extended by Amendment No. 2 to the Agreement for two (2) additional years from July 1, 2025, to June 30, 2027 ("Second Extended Term"). 2. Exhibit B — Schedule of compensation is amended to read as listed in attached Exhibit A, incorporated herewith by this reference. In all other respects, the original Agreement and Amendment No. 1 shall remain in effect. This Amendment No. 2 may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 2 to the Agreement on the respective dates set forth below. LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic N McMILLEN, Executive Director & City Manager La Quinta, California ATTEST MONIKA RAD VA, ►. uthority Secridtary & City Clerk La Quinta California APPROVED AS TO FORM WILLIAM H. IHRKE, Authority General Counsel & City Attorney La Quinta, California JC DESERT ENTERPRISES, INCORPORATED, a California Corporation, and d/b/a LA QUINTA PALMS REALTY SIGNED IN COUNTERPART ROBIN CARNEY, Owner AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES 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 Three -Hundred Six Thousand Seven -Hundred Ninety -Two dollars ($306,792) ("Contract Sum") for the life of the agreement, encompassing the Initial and any Extended Terms of this Agreement as detailed in the table below. 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. Term Compensation Original 3-Year Term FY 2020/21 ($3,500 per month) $42,000 FY 2021/22 ($3,500 per month) $42,000 FY 2022/23 ($3,500 per month) $42,000 Original 3-year Term Total: $126,000 Amendment No. 1 — 2-Year Term FY 2023/24 ($3, 675 per month) $44,100 FY 2024/25 ($3, 675 per month) $44,100 Amendment No. 1 Total: $88,200 Proposed Amendment No. 2 — 2-Year Term FY 2025/26 ($3, 858 per month) $46,296 FY 2026/27 ($3, 858 per month) $46,296 Proposed Amendment No. 2 Total: $92,592 Grand Total: $306,792 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES CONSENT CALENDAR ITEM NO. 2 City of La Quinta HOUSING AUTHORITY SPECIAL MEETING. July 1, 2025 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES, INC DBA LA QUINTA PALMS REALTY, INC FOR PROPERTY MANAGEMENT SERVICES RECOMMENDATION Approve Amendment No. 2 to Agreement for Contract Services for property management services with JC Desert Enterprises, Inc. dba La Quinta Palms Realty, Inc.; and authorize the Executive Director to execute the amendment. EXECUTIVE SUMMARY • The City contracts property management services for its affordable housing properties inventory for qualified low-income residents. • On May 19, 2020, the La Quinta Housing Authority (Authority) approved a 3-year Agreement for Contract Services with La Quinta Palms Realty (LQPR) for property management services, following the competitive request for proposals (RFP) public procurement process conducted in 2020. • In November 2022, the Authority executed an Assignment, Assumption, and Consent Agreement with JC Desert Enterprises, Inc. dba La Quinta Palms Realty, Inc. (JC Desert), who assumed LQPR's contractual obligations for the services due to LQPR's dissolution; the agreement expired June 30, 2023. • In June 2023, the Authority executed Amendment No. 1 with JC Desert extending the agreement through June 30, 2025. • Proposed Amendment No. 2 (Attachment 1) with JC Desert will extend the services through June 30, 2027. • On June 11, 2025, the Housing Commission reviewed and recommended the Authority approve the proposed Amendment No. 2. =IS( Estimated costs per fiscal year (FY) for the proposed two-year term extension under Amendment No. 2 are not to exceed $46,296 ($3,858 monthly). If approved, the total not - to -exceed amount under the agreement is $306,792 as detailed in the table below. Funds are budgeted in the Authority's FY 2025/26 Rental Expenses budget (Account No. 241- 9103-60157), and future FYs will be budgeted in accordance with the agreement. 7 Term Compensation Original 3-Year Term FY 2020/21 ($3,500 per month) $42,000 FY 2021/22 ($3,500 per month) $42,000 FY 2022/23 ($3,500 per month) $42,000 Original 3-year Term Total: $126,000 Amendment No. 1 — 2-Year Term FY 2023/24 ($3, 675 per month) $44,100 FY 2024/25 ($3, 675 per month) $44,100 Amendment No. 1 Total: $88,200 Proposed Amendment No. 2 — 2-Year Term FY 2025/26 ($3, 858 per month) $46,296 FY 2026/27 ($3,858 per month) $46,296 Proposed Amendment No. 2 Total: $92,592 Grand Total: $306,792 BACKGROUND/ANALYSIS In February 2020, the City published an RFP for property management services for the Authority's affordable housing properties inventory for qualified low-income residents in La Quinta; and received one proposal from LQPR. On May 19, 2020, the Authority executed a 3-year agreement with LQPR for the services, which was set to expire on June 30, 2023. In November 2022, following LQPR's dissolution, the Authority executed an Assignment, Assumption, and Consent Agreement with JC Desert. Under this agreement, JC Desert assumed all of LQPR's contractual obligations with the Authority, and now operates under the Department of Real Estate as a dba of La Quinta Palms Realty, Inc. (License No. 02198183). In June 2023, the Authority executed Amendment No. 1 with JC Desert extending the agreement term through June 30, 2025. The proposed Amendment No. 2 with JC Desert, if approved, will extend the term of the agreement for two additional years, through June 30, 2027. The Authority may terminate the agreement at any time with a 30-day written notice. ALTERNATIVES The Authority may elect not to approve the proposed Amendment No. 2, however, staff does not recommend this alternative due to the immediate need for these services. Prepared by: Laurie McGinley, Management Specialist Approved by: Gilbert Villalpando, Director of Business Unit and Housing Development Attachment: 1. Amendment No. 2 to agreement with JC Desert 8