2016-03-09 Housing Authority Item 3 (Page 3 Amended) Property Management Pacific Pines revenues were $235,032; revenues exceeding the expenses by approximately $41,244. Net revenues
are held as reserves for unanticipated operational costs or future actions by the EHA Board of
Commissioners related to affordable housing opportunities. At FY 2014-15 year-end, the Pacific Pines
total reserve fund balance was $368,904.
Hyder's monthly management fee of$65/unit, which totals $1,040 monthly for all sixteen units, includes
full property management services. Additionally, Hyder retains in-house maintenance staff to conduct
small repairs, while utilizing outside vendors for more specific or specialized work. The cost for
maintenance service staff is estimated at $420 monthly for all sixteen units and will be utilized on an as-
needed basis. Other operating costs, such as the Homeowner's Association Fee, property insurance
and utilities are provided by outside vendors "at cost" to the Housing Authority. These expenses are
paid directly by the EHA and are not included in this request. The amount requested for the contract is
currently available in the approved budget for Pacific Pines. The operating budget for Pacific Pines was
approved by the City Council with the City's FY 2014/15 — FY 2018/19 Operating and Capital Budgets
on May 28, 2014.
Contract
The current property management contract with Hunter Properties expires on March 31, 2016;
therefore, the new contract would begin April 1, 2016. Staff will work with both the existing and the new
property management firms to ensure a smooth transition for the tenants. Staff recommends an initial
one-year contract. Based on satisfactory performance as determined by the Executive Director or
designee, the contract will include an option to extend for an additional two-year period. The total
contract period will not exceed three years without further EHA Board authorization. Upon completion of
the three-year contract period, staff will issue an RFP to test the market in the same manner as
described in this report.
ENVIRONMENTAL CONSIDERATIONS:
The action before the Encinitas Housing Authority Board is to consider and approve a contract with
Hyder & Company for property management services and maintenance of sixteen Encinitas Housing
Authority owned units at Pacific Pines, which is exempt from environmental review pursuant to Section
15060 (c) (2) and (c) (3) of the Guidelines of the California Environmental Quality Act (CEQA) in that
the activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment; and the activity is not a project as defined in Section 15378 of the CEQA Guidelines.
ATTACHMENTS:
Attachment 1 — Hyder & Company Proposal for Property Management Services, Submitted on:
January 22, 2016.
Attachment 2 — Resolution No. EHA 2016-02, authorizing the Executive Director, or designee, to
negotiate and execute a contract with Hyder & Company, not to exceed $27,000
annually for a one-year period with an option to extend for an additional two-year
period, for property management services and maintenance of sixteen Encinitas
Housing Authority owned units at Pacific Pines
Attachment 3 — Request for Proposals for Property Management Services
Attachment 4 — Pacific Pines Overview
2016-03-09 Item 3 3 of 105 (Amended)