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HomeMy WebLinkAbout2026-27 Caha, Becky Amendment 1 - Housing Compliance & Monitoring1 MEMORANDUM Cvadd& CALIFORNIA DATE: May 28, 2026 TO: Jon McMillen, City Manager FROM: Laurie McGinley, Management Specialist RE: Becky Caha - Amendment 1 - Affordable Housing Monitoring & Compliance FY 2026-27 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. ✓ ✓ Authority to execute this agreement is based upon: Approved by City Council on Housing Authority April 21, 2026 (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 n 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.: 241-9101-60103 Agreement term: Start Date 07/01/2026 End Date 06/30/2027 Amount of Agreement, Amendment, Change Order, etc.: $ 407,275 ($82,225 Increase) 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: Oscar Mojica Date: 6/11/2026 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) i 78495 Calle Tampico I to Quinta, California 92253 1760.777.7000 I www,laquintacagov AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH BECKY CAHA This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services ("Agreement") is made and entered into as of the 1st day of July, 2026, ("Effective Date") by and between the La Quinta Housing Authority ("Authority" and/or "City", used interchangeably from here on out), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and BECKY CAHA, with a place of business at 9812 Continental Drive, Huntington Beach, California, 92646 ("Contracting Party"). RECITALS WHEREAS, on or about July 1, 2024, the City and Contracting Party entered into an Agreement to provide Affordable Housing Monitoring and Compliance services, for a total not to exceed amount of $325,050. The term of the Agreement will expire on June 30, 2026 ("Initial Term"); and WHEREAS, the City and Contracting Party mutually agree to amend Section 1.1 Scope of Services and related Exhibit A of the Agreement to include additional services related to Affordable Housing Monitoring and Compliance; and WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1 Contract Sum and related Exhibit B of the Agreement to increase the total not to exceed compensation amount by $82,225 from $325,050 to $407,275; and WHEREAS, pursuant to Section 3.4 Term, the City and Contracting Party mutually agree to extend the term of the agreement for one (1) additional one-year term from July 1, 2026 through June 30, 2027 ("Extended Term"). 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 1.1 Scope of Services is amended to read as follows: 1.1 Scope of Services. In Compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to Affordable Housing Monitoring and Compliance, 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 performing similar services under similar circumstances. 2. "Exhibit A" — Scope of Services is amended to include the original and additional services detailed in Exhibit A, attached to this Amendment No. 1, and incorporated herein by this reference. 3. Section 2.1 Contract Sum is amended to read as follows: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with the following revised "Exhibit B" (the "Schedule of Compensation") in a total amount not to exceed Four Hundred and Seven Thousand Two Hundred Seventy -Five Dollars ($407,275), for the life of the Agreement, encompassing the Initial and any Extended Terms (the "Contract Sum"), except as provided in Section 1.7 4. "Exhibit B" — Schedule of Compensation is amended as listed in "Exhibit B," attached hereto and incorporated herein by this reference. 5. 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, 2024, and terminate on June 30, 2026. ("Initial Term"). Amendment No. 1 extends this Agreement for one (1) additional year, from July 1, 2026, to June 30, 2027 ("Extended Term"). This Agreement may not be extended further. In all other respects, the original Agreement shall remain in effect. [SIGNATURES ON FOLLOWING PAGE] IN WITNESS WHEREOF, the Authority and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation JQN-McICRf[LEN, Executive Director City of La Quinta, California BECKY CAHA SIGNED IN COUNTERPART Becky Caha, Consultant Dated: r /2t /Z2C0 Dated: ATTEST: MONIKA RADEVA, Authority Secretary City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, Authority Counsel City of La Quinta, California IN WITNESS WHEREOF, the Authority and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation SIGNED IN COUNTERPART JON McMILLEN, Executive Director City of La Quinta, California Dated: ATTEST: SIGNED IN COUNTERPART MONIKA RADEVA, Authority Secretary City of La Quinta, California APPROVED AS TO FORM: SIGNED IN COUNTERPART WILLIAM H. IHRKE, Authority Counsel City of La Quinta, California BECKY CAHA Becky Ca a, Consultant Dated: I I C ij (21)2 (, c BECKY CAHA Exhibit A Scope of Services 9812 Continental Drive Huntington Beach, CA 92646 760.900.9668 cahabecky@gmail.com March 2, 2026 Via Email Mr. Gilbert Villapando Director Business Unit/ Housing Development CITY OF LA QUINTA 78495 Calle Tampico La Quinta, CA 92247 CONTRACT BUDGET ADJUSTMENT REQUEST FEE PROPOSAL FOR EXTENSION OF EXISTING CONTRACT Dear Mr. Villapando: As you are aware, in June 2024 the La Quinta Housing Authority issued a contract to engage my services for housing administrative consultant services. The contract is expiring on June 30, 2026. The contract balance is about $23,375. The remaining balance will unlikely cover the expenses through June 30, 2026. The following has caused an increase in anticipated time and expense that has greatly impacted the contract budget proposal provided in June 2024. Watercolors Senior Home Purchase Program - This program has had several issues come up that were not anticipated at the time of this contract. There has been extensive work with the Homeowners Association Board as well as property owners within this development involving homeownership compliance and enforcement. It required meetings and research that was not a part of the original contract These additional activities have required more hours than anticipated. The contract anticipated approximately 50 hours a month for administration of the affordable housing program activities, which includes annual compliance monitoring, resale processing, refinancing coordination and general questions from property owners. To date, the average time spent on these activities is an average of 65 hours a month. March 4, 2026 Page 12 It is not anticipated that this time will decrease through the remainder of this time, as there are several items still outstanding with information requested by the HOA, as well as a significant increase in property owners looking to sell their properties within the next 6 months. Due to this increase in time, I would like to request the following contract adjustment for the remainder of this contract term. In addition, the other items covered under the initial contract will require the following amount of time: A Application Processing For all 2nd Trust Deed Programs - review any potential applicants for resale's (this includes Watercolors, 2nd Trust Deed Home Purchase Loans, Miraflores, Authority Resales, and Habitat). Coordinate with realtors and escrow/title on processing purchases. (estimated time required - 20 hours per month) B. Subordination Review/Approval/Processing 2nd TD Programs - Review current loan applications and verify whether or not refinance is allowable under terms of the particular program; coordinate with lender and escrow in processing subordination agreements and preparing said agreements for signature. (estimated time required - 10 hours per month) C. Payoff Processing 2nd TD Programs - verify whether or not loan can be paid off - if allowed - work with lender, escrow and property owner to determine payoff amount and the prepare necessary payoff documents and ensure that the Authority receives payment. (estimated time required - 5 hours per month) March 4, 2026 Page 13 D. Phone Call/Inquiries 2nd TD Programs - Consists of phone calls from realtors, property owners, lenders, general public on the terms and conditions of various properties within the Authority's housing program. Involves reviewing restrictions, determining potential resale prices, refinancing limitations, payoff limitations. (estimated time required - 30 hours per month) E. Ownership Recertification Compliance Monitoring 2nd Trust Deed Program. Process responses to ownership occupancy recertifications and address non-compliance issues as well as follow-up on non -responders. (estimated time required - 10 hours per month) F. Rental Property Compliance Monitoring Annual tenant recertification for Authority -owned properties in the Cove area of La Quinta. (estimated time required - 5 hours per month) OTHER SERVICES Recording Reconveyances - 2nd Trust Deed properties (term expiration) - At the end of each year - arrange for the preparation and recordation of the necessary reconveyance documents for those properties that have completed the term of the 2nd trust deed affordable housing program. (estimated time required - 5 hours monthly preformed in the month of term expiration). Foreclosure / Loan Default Assistance - Work with homeowners and lenders to assist in the resolution of defaults and assist lenders in the event of foreclosure. (Estimated time required - 5 hours monthly). Housing Authority Annual Report Assistance - Assist, upon request, with verification of housing unit verification and other information that may be needed for the Authority Annual Housing Report. (Estimated time required - 5 hours monthly). March 4, 2026 Page 14 I am prepared to alter my scope of services to accommodate any changes in services the Authority deems appropriate. Below is the breakdown of the time and cost of the remainder of the Contract's term (June 30, 2026). Estimated Monthly Budget: LA QUINTA HOUSING AUTHORITY Housing Program Administration Remaining Budget through June 30, 2026 Monthly Hours Total Hours $ Amount 2nd Trust Deed Program (Including Watercolors) Application Processing - Resales of Covenanted Properties 20 80 $ 12,000 Subordination Review/Approval/Processing 10 40 $ 6,000 Payoff Processing 5 20 $ 3,000 Phone Calls/Inquiries 30 120 $ 18,000 Ownership Recertification Compliance Monitoring 10 40 $ 6,000 Multifamily / Rental Properties Annual Compliance Certification Monitoring Other Services Recording Reconveyances Foreclosure / Loan Default Assistance Housing Authority Annual Report Assistance 5 20 $ 3,000 5 20 $ 3,000 5 20 $ 3,000 5 20 $ 3,000 TOTAL $ 57,000 TOTAL REMAINING BUDGET $ 23,375 TOTAL BUDGET INCREASE REQUESTED $ 33,625 March 4, 2026 Page 15 EXTENSION OF EXISTING CONTRACT In the event the Authority wishes to extend the contract an additional year (through 2026- 27), the following is the proposed monthly budget amount: FEE PROPOSAL Below is my fee proposal based upon compensation on a time and materials basis. My hourly rate for this engagement is $150 per hour. The estimate below is provided for the period through the end of the proposed contract term (June 30, 2027) assuming all services noted in the Scope of Services. LA QUINTA HOUSING AUTHORITY Housing Program Administration Budget through June 30, 2027 Monthly Hours Total Hours $ Amount 2nd Trust Deed Program (Including Watercolors) Application Processing - Resales of Covenanted Properties 20 240 $ 36,000 Subordination Review/Approval/Processing 10 120 $ 18,000 Payoff Processing 5 60 $ 9,000 Phone Calls/Inquiries 30 360 $ 54,000 Ownership Recertification Compliance Monitoring* 35 35 $ 5,250 Multifamily / Rental Properties Annual Compliance Certification Monitoring Other Services Recording Reconveyances Foreclosure / Loan Default Assistance Housing Authority Annual Report Assistance * Postage for mailing and return envelopes/follow-up (cost is subject to change due to postage rates in the future). 5 20 $ 3,000 5 60 $ 9,000 5 60 $ 9,000 5 20 $ 3,000 $ 700 TOTAL $ 146,950 March 4, 2026 Page 16 Thank you for considering the increase in the current contract budget amount, as well as an extension to the existing contract with the revised fee proposal. Please do not hesitate to contact me if you have any questions, or if you have any changes to the Scope of Services. You can reach me at (760) 900-9668 and my email is cahabecky@gmail.com . Sincerely, 6e4 ed. Becky Caha 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 Four Hundred and Seven Thousand Two Hundred Seventy -Five Dollars ($407,275) ("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 attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of the Agreement. Fiscal Year Services Compensation 2024/25 Housing Monitoring and Compliance $103,350 2025/26 Housing Monitoring and Compliance $136,975 2026/27 Housing Monitoring and Compliance $146,950 2024/27 Contingency at approximately 5% $20,000 Grand Total: $407,275 BUSINESS SESSION ITEM NO. 1 City of La Quinta HOUSING AUTHORITY QUARTERLY MEETING: April 21, 2026 STAFF REPORT AGENDA TITLE: APPROPRIATE FUNDING FOR FISCAL YEAR 2025/26 AND APPROVE AGREEMENT FOR CONTRACT SERVICES WITH FRONTLINE FACILITY SOLUTIONS, LLC, FOR PROPERTY MANAGEMENT SERVICES FOR DUNE PALMS MOBILE HOME ESTATES ?ECOMMENDATION Appropriate funding for fiscal year 2025/26; approve Agreement for Contract Services with Frontline Facility Solutions, LLC, to provide property management services for the Dune Palms Mobile Home Estates; and authorize the Executive Director to execute the agreement. EXECUTIVE SUMMARY • The Housing Authority (Authority) acquired the Dune Palms Mobile Home Estates (Park) in 2021 and currently contracts with J&H Asset Property Management, Inc. (J&H) for property management services; the agreement expires June 30, 2026. • In January 2026, Staff issued a Request for Proposals (RFP) for Residential Property Management Services for the Park; four proposals were received and Frontline Facility Solutions, LLC (FFS) was selected as the most qualified. • If approved, the proposed Agreement for Contract Services with FFS (Attachment 1) will commence June 1, 2026, overlapping services with J&H for a month, to allow for the seamless transition of services and transfer of all property records. • At the April 9, 2026, special meeting, the Housing Commission reviewed the proposed agreement and recommended Authority approval. FISCAL IMPACT Estimated costs for the proposed agreement are a total not to exceed amount of $1,070,000, encompassing the 1-month transition period in June of fiscal year (FY) 2025/26, the 3-year initial term through FY 2028/29, an optional 2-year extension through FY 2030/31, and contingency funding, as detailed in the table below. An appropriation of funds in the amount of $40,000 for FY 2025/26 will be requested from the Authority to supplement Account No. 241-9104-60103 Professional Services, necessary to cover both the remaining months of the existing agreement with J&H through June 30, 2026, and the 1-month transition period under the proposed Agreement with FFS commencing June 1, 2026. CONTRACT PERIOD MONTHLY COST ANNUAL TOTAL RUNNING TOTAL June 1 — 30, 2026 (transition period) $15,742 $15,742 $15,742 2026/27 $15,742 $188,904 $204,646 2027/28 $15,742 $188,904 $393,550 2028/29 $15,742 $188,904 $582,454 INITIAL TERM TOTAL: $582,454 2029/30 (optional) $16,847 $202,164 $784,618 2030/31 (optional) $16,847 $202,164 $986,782 OPTIONAL 2-YEAR EXTENSION TOTAL: $404,328 Contingency $83,218 GRAND TOTAL: $1,070,000 BACKGROUND/ANALYSIS In 2021, the Authority acquired the Park to preserve and operate the property as an affordable housing resource serving low-income residents. On March 16, 2021, the Authority approved an agreement with J&H to provide property management services which was subsequently extended through June 30, 2026. In anticipation of the agreement's expiration, staff issued an RFP in January 2026 for Residential Property Management Services for the Park and received 4 proposals. Staff interviewed all 4 firms and selected FFS based on their experience and qualifications. FSS is California based, and Service -Disabled Veteran Owned Small Business with demonstrated expertise in property management and Mobilehome Residency Law (MRL) compliance. At the April 9, 2026, special meeting, the Housing Commission reviewed the proposed agreement and recommended Authority approval. If approved, the proposed agreement will commence June 1, 2026, 1 month prior to the expiration of the J&H contract to allow for the seamless and structured transition of services and all property records. Per the Schedule of Performance (Exhibit C to the agreement), FFS's mobilization phase (June 1-14) includes obtaining required licenses and permits, coordinating with the outgoing manager, and reviewing existing leases, vendor contracts, and financial records. FFS will assume property and operational management of the Park effective July 1, 2026, with a resident community meeting to be held within 30 days of service commencement and annually thereafter. FFS will provide dedicated 24/7 emergency response via licensed vendors, MRL compliance, dedicated on -site staffing with a property manager 32-36 hours per week (Monday —Friday), and a maintenance worker 32 hours per week (Monday —Thursday), with supplemental coverage on Fridays provided by additional vendors for inspections, minor repairs, and resident support. ALTERNATIVES The Authority may elect not to approve the proposed agreement with FFS; however, this alternative is not recommended in order to ensure a smooth transition of services with a qualified firm. Prepared by: Approved by: Attachment: Doug Kinley III, Senior Management Analyst Gilbert Villalpando, Director of Business Unit and Housing 1. Agreement for Contract Services with Frontline Facility Solutions