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2016-03-09 Housing Authority Item 3 Property Management Pacific Pines . . AGENDA REPORT Housing Authority MEETING DATE: March 9, 2016 Nicole Piano-Jones, ACTING DEPT. PREPARED BY: Management Analyst DIRECTOR: Manjeet Ranu, AICP DEPARTMENT: Planning & Building CITY MANAGER: Karen P. Brust SUBJECT: Contract with Hyder & Company for Property Management Services and Maintenance of sixteen Encinitas Housing Authority Owned Condominium Units at Pacific Pines. RECOMMENDED ACTION: Approve 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 an initial 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. STRATEGIC PLAN: This item relates to the Community Planning Focus Area of pursuing a range of diverse housing opportunities balanced throughout the community. FISCAL CONSIDERATIONS: The fiscal impact associated with the staff recommendation is included in the approved budget. Funding for the recommended contract at $27,000 annually, not to exceed a three-year period, was included with the City's approved FY 2014/15 — FY 2018/19 Operating and Capital Budget. Funding for the recommended property management and maintenance contract is currently available. Fiscal impacts associated with the staff recommendation are further discussed in this report. Under the proposed property management contract, the monthly management fee for all sixteen units is $1,040 inclusive of all fixed costs. During the previous property management contract, the total monthly management fee for all sixteen units was $1,640, inclusive of all fixed costs. Total expenditures for property management services and maintenance for all sixteen units at Pacific Pines during FY 2014- 15 was $36,043. BACKGROUND: Pacific Pines was originally built as the Torrey Pines Racquet Club Apartments in 1984. Although the property was mapped as condominiums, it was operated as apartments, including thirty-seven affordable rental units. In 2002, the property owner began a condominium conversion process. In 2003, the City of Encinitas Housing Authority (EHA) utilized a combination of federal funding sources to purchase and preserve some of the affordable units that otherwise would have been lost. As a result sixteen units were purchased by the EHA to be maintained as affordable rentals. A primary motivation 2016-03-09 Item 3 1 of 105 to purchase the units was not only to preserve the existing affordable units, but also to provide a permanent rental opportunity to Section 8 Housing Choice Voucher program participants. Beginning in 2004, the EHA has retained professional property management services for the units at Pacific Pines, to provide a quality living environment for tenants. Hunter Properties has provided property management services for the EHA owned units at Pacific Pines since 2004. ANALYSIS: Request for Proposals The City "tests" the market every three years to determine if the needed property management services are being provided in a cost-efficient manner by soliciting proposals for those services. Following that approach, staff issued a Request for Proposals (RFP) in December 2015 to solicit proposals from property management firms. The RFP was available for approximately thirty days and was mailed directly to regional firms, posted on the City website and posted at City Hall. Three proposals were received. Staff reviewed and evaluated the proposals based on responsiveness to the RFP, experience, ability to perform requested services, and cost. A summary of the management fees associated with each proposal are provided below: FIXED COSTS VARIABLE OFFICE FIRM MANAGEMENT FEE OTHER TOTAL COSTS LOCATION Hunter $16/unit Properties $100/unit (Monthly Workers' $116/unit $250 (New Leases) Cardiff Compensation) $65/unit $420 (Estimated Hyder&Cc (including new $0 $65/unit Monthly on-call San Marcos leases) Maintenance Staff —all 16 units)* Carousel 8% of Rent 8% of Rent Properties (Approx. $77- $0 (Approx. $77- $0 Carlsbad $96/unit) $96/unit) *With the previous property management contract, all maintenance was handled through outside vendors at cost. The $420 is an estimated monthly amount for Hyder maintenance staff for all sixteen units on an as-needed basis. Actual maintenance costs will vary depending on the nature of the repairs needed. Recommendation Staff recommends the selection of Hyder & Company (Hyder) as the property management firm for the EHA-owned sixteen units at Pacific Pines. The recommendation to select Hyder is based upon the firm's demonstrated experience with local agencies and owners, to provide the services needed, additional services outside of those outlined in the RFP, references, experience with affordable housing, and cost. Hyder is a professional property management firm located in San Marcos. Hyder has provided management services to housing agencies/providers and property owners since 1964 and specializes in affordable housing property management. Hyder currently manages over 1,200 rental units throughout San Diego County, the majority of which are affordable units, with properties ranging in size from three units to 200 units. Hyder is currently contracted by the San Diego County Housing Authority for property management services, in addition to privately owned affordable housing, such as Urban Housing Communities, Chelsea Investment Corporation, and Mutual Housing. Budget Pacific Pines rental income revenue offsets operational costs, including property management services. Total operational expenses for the Pacific Pines units at FY 2014-15 year-end were $193,788 and total 2016-03-09 Item 3 2 of 105 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) Attachment 1 Hyder & Company Proposal for Property Management Services Submitted on: January 22, 2016 2016-03-09 Item 3 4 of 105 2016-03-09 Item 3 5 of 105 4 Property HydIA Management Professionals Request for Proposals Submitted To The Encinitas Housing Authority on January 22, 2016 By Hyder & Company For Hyder &Company Meghan Birnkrant Property Mana ement of 1649 Capalina Road Suite 500 San Marcos,CA 92069 Sixteen Condominium (760)591-9737 Units 2016-03-09 Item 3 6 of 105 TABLE OF CONTENTS SECTION PAGE Proposal Cover Sheet and Statement of Experience and Financial Condition................ 1 Qualifications, Experience and Approach Narrative ........................................................ 3 Offeror's Resume.......................................................................................................... 12 General Organization Information ................................................................................. 14 OrganizationCharts ...................................................................................................... 15 GreenCertification ........................................................................................................ 17 Budget........................................................................................................................... 18 References.................................................................................................................... 20 Proof of Insurance......................................................................................................... 21 ProjectType List ........................................................................................................... 24 Sample Management Plan............................................................................................ 26 MarketingBrochure....................................................................................................... 54 2016-03-09 Item 3 7 of 105 PROPOSAL COVER SHEET PROVIDER'S PROPOSAL TO PROVIDE PROFESSIONAL SERVICES PROPERTY MANAGEMENT OF SIXTEEN HOUSING AUTHORITY OWNED UNITS To the Honorable Mayor and City Council of the City of Encinitas: In compliance with the REQUEST FOR PROPOSALS, the undersigned hereby agrees to furnish all labor, materials, and equipment to perform the service described in the proposed contract which is enclosed herewith; and to do so in strict accordance with the provisions of the proposed CONTRACT. The proposed contract contains a provision whereby the PROVIDER agrees to indemnify the CITY. PROVIDER's proposal should take this requirement into account when preparing the proposal. Please refer to Section 12 of the Standard Form Professional Services Agreement. ENCLOSURES 1. A STATEMENT OF EXPERIENCE AND FINANCIAL CONDITION on the CITY's form, dated and signed by the PROVIDER with supporting documents;and 2. A STATEMENT OF ECONOMIC INTERESTS,dated and signed by PROVIDER. SIGNATURE OF PROVIDER This document is signed by an individual clearly authorized to bind the PROVIDER to the proposal for a period of 90 days. The PROVIDER agrees to be bound by the provisions of this REQUEST FOR PROPOSALS. PROVIDER: Of Apf, ADDRESS: ,�L P C .i ,l ii`C4 11& 6 $r� MarciL,CA 92R,A PHONE: by: .01 � Sign DT Title: l 2016-03-09 Item 3 8 of 105 l STATEMENT OF EXPERIENCE AND FINANCIAL CONDITION PROPERTY MANAGEMENT OF SIXTEEN HOUSING AUTHORITY OWNED UNITS In submitting this PROPOSAL, the PROVIDER. represents that PROVIDER has a demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the proposed contract in a manner that is satisfactory to the CITY. The PROVIDER represents that PROVIDER's financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, and experience in working with the public, neighborhood groups and public agencies all suggest that the PROVIDER is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency. In support of these representations, PROVIDER presents herewith letters of commendation and/or recommendation; reports; titles of lawsuits involving PROVIDER during the preceding ten years; personnel strength reports, current and anticipated projects that PROVIDER will be expending effort upon in the State of California during the performance of the proposed contract; a list of all public contracts performed by PROVIDER during the preceding five years that identifies the governmental agencies involved; and such other documents that the PROVIDER deems necessary to support PROVIDER's PROPOSAL.The supporting documents are enclosed herewith. SIGNATURE OF PROVIDER This document is signed by an individual clearly authorized to bind the PROVIDER. PROVIDER: � ADDRESS: r PHONE: by: +Dae Sign Title: �r 2016-03-09 Item 3 9 of 105 2 Hyder Property Management Professionals Qualificatl*ons,, Ex * perie and App 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226 Phone: (760) 591-9737 Fax: (760) 591-9784 www.hyderco.com 2016-03-09 Item 3 10 of 105 Experience, Qualification and Approach Narrative Hyder& Company is and has been committed to our customers' mission since 1964. We are a wonderful partner in property management for the City of Encinitas Housing Authority because our mission and goals dovetail with yours perfectly. Our overall goal is to support the City of Encinitas Housing Authority, and its priority to provide decent, safe and sanitary housing for eligible low-income households. The way we accomplish that goal is to provide the best possible living environment to the residents. Our corporate office is conveniently located in North San Diego County, in the City of San Marcos. We manage 100% affordable developments with numerous regulatory requirements from various programs including: Low Income Housing Tax Credits (LIHTC)from the very inception of the program, Bonds, United States Department of Agriculture (USDA)Rural Development(family and farm worker housing—grants and loans), Department of Housing and Urban Development(HUD)project based Section 8 contracts and HUD loans, California Housing Finance Agency (CalIVA), City, County and Redevelopment and numerous programs from the California Department of Housing and Community Development(HCD)including (1)Multifamily Housing Program (MHP), (2) HOME Investment Partnerships Program (HOME), (3)Rental Housing Construction Program (Bond), (4) Construction Housing Rehabilitation Program (CHRP), (5)Family Home Demonstration Program (FHDP), (6)Rental Housing Construction Program (subsidy), (7) Supportive Housing Initiative Act(SHIA)Program. Please see Exhibit B for our entire Project Type List. Experience in Managing Project-Based Section 8 Vouchers We are currently managing nine (6)properties totaling 327 units with project-based Section 8 vouchers (see attached Exhibit B - Property Type List for various programs managed). In addition, several of our properties have a portion of the units that are Project Based Section 8 units. Plan and Methodology Hiring and Screening Procedures for Employees 2016-03-09 Item 3 11 of 105 3 A perspective employee fills out an application and is interviewed by the supervisor. Prior to hiring, Hyder conducts a criminal background check and drug screening. The employee is then given all the necessary and appropriate hiring paperwork as is required by the federal government, the state of California, Hyder& Company and our co-employer ADP TotalSource. Upon hiring, the employee is trained within 60 days. Current Training Procedures for New Employees All new office site managers are required to attend an initial 3-day company orientation training. The orientation includes accounting procedures, collection process, rent collection policies, computer software training, replacement reserve policies and procedures, HR policies and procedures, etc. In addition to this orientation, supervisors conduct quarterly regional meetings for problem-solving any issues and doing any new policies and procedures. Supervisors also do one-on-one on-the-job training with each manager during a monthly project inspection. Annually, the corporate Maintenance Supervisor conducts health and safety training with all maintenance personnel. The Maintenance Supervisor also conducts an annual inspection of each project and addresses any health and safety, illness and injury prevention issues, safety center, MSDS issues, work order system and replacement reserve discrepancy issues, etc. with the site managers and maintenance directors. Staff are also encouraged and supported to participate in continuing education provided by other public and private entities such as: • USDA-RD 514-516/515 Certification Training • HOME Training conducted by County RDA personnel on HOME program compliance. • Tax Credit Training by in-house compliance personnel and occasional company- wide and/or regional training on up-dated tax credit regulations by nationally recognized entities such as Ruth Theobold and/or Elizabeth Moreland. • Home Depot training for maintenance personnel on: • Basic Electrical and HVAC trouble-shooting and repair • Painting and Basic Drywall • ADP TotalSource Training 2016-03-09 Item 3 12 of 105 4 o Customer Service o Supervisory Skills o Communication Business Operations Current Property Management,Accounting Software, Compliance Monitoring Software Hyder& Company has implemented software applications, both at the property management as well as the asset management level that set us apart from the rest of the industry. Our systems are supported and maintained by our IT team of 2 with over 25 years' experience, along with consistent support from Real Page technologies and other consulting services. We not only use the latest technology available, but also we paid special attention to the type of technology that makes sense to our specific industry. We create a very unique balance by providing tools that address the needs of the properties at the site level that are very easy to use, therefore assuring early adoption, as well as addressing potential turnover of staff. These tools also allow our on-site staff to report real-time to our management team and owners. Our existing system also allows us to systematically and consistently apply our processes and procedures across our portfolio management. For example, our application process that starts with the Background Screening of the applicants is fully integrated to our software system; therefore enforcing any specific rules that either management or ownership has in place. The managers at the site are NOT able to proceed with the application process, such as reserving or even moving a family to a unit unless our system allows them to do so. Our Property Management and Compliance software, I-CAM, provides the following benefits: I-CAM is a revolutionary new Windows and Web-based application which automates and streamlines all aspects of rental office activities, I-CAM's graphical interface 2016-03-09 Item 3 13 of 105 5 simplifies daily tasks such as rent collection, banking, compliance, maintenance, traffic, waiting list, and unit leasing activities. Reports are clear and easy to understand, with detailed line-item accuracy which supports higher level journal summary accounting reports. In I-CAM, I-Doc, and ACCPAC owners have the ability to log on remotely to access property information online. Hyder has the capability to provide adequate insurance coverage including liability, errors and omission,worker's comp and owned auto liability. Hyder& Company has taken steps to negotiate cost effective purchasing programs in the area of insurance coverage. We have an umbrella liability policy for each project of 26 million dollars through Propel Insurance Services. We have also made available to our property owners the IPAH (Insurance Program for Association Housing) program. IPAH was designed to meet the needs of individual owners, Housing Authorities, and Management firms that are looking for ways to reduce their costs and increase coverage limits. Accomplished by bundling owner properties, IPAH has proved to be an effective and consistent in coverage and price. The National Apartment Associations 2008 Survey of Operating Income & Expenses in Rental Apartment Communities has shown that of 317 properties surveyed throughout the state of California the average per unit insurance cost was $286. IPAH costs have been provided to participating members at a cost much lower. IPAH is not just a stand alone product of one entity; but a recognizable insurance choice that has been endorsed by the Northwest Chapters of Affordable Housing Management Association (AHMA) and the Council for Rural and Affordable Housing (CARH). The program is administered by Propel Insurance Services and underwritten by Firemans Fund Insurance Company. Firemans Fund is an AM BEST rated `A' carrier and licensed in all 50 states. 2016-03-09 Item 3 14 of 105 6 Propel Insurance Services works solely on Real Estate owners and developers on a nationwide basis. Hyder& Company also receives savings as a co-employer with ADP TotalSource for our Workers' Compensation insurance coverage, as we are a member of a larger pool. As the Property Management Company of record, we offer the full range of supervisory & support staff to optimize the living environment for the resident. The Operations staff is supported by Compliance and Information Technology staff that is greater than 1 to 1,000 units, better than the industry as a whole, and our Financial Support staff, including accounting, reporting, accounts payable& budgeting, is more than 1 per 500 units. Specific Corporate Officer support services provided by the management company (and not a project expense) include: • Director of Corporate Maintenance & Safety Hyder provides operational support in the form of a corporate maintenance staff. While this team's primary function is preventative (i.e. annual physical property inspections & safety training) they are also periodically called upon to respond to property emergencies. The response time is, in many instances, timelier than an outside contractor, and the cost is borne by the management company, instead of the property. This role is not one found at most management companies, but at Hyder we provide it as an important value- added service to our properties & their owners. The safety training has resulted in fewer workers compensation claims, ultimately reducing the cost of the property's workers compensation insurance. • Manager of Human Resources & Payroll Hyder employs a full-time, dedicated Human Resources & payroll specialist. Along with assuring timely, accurate payroll processing, she is available to assist management in assuring that appropriate employment practices are set and followed. She is supported by our co-employer, ADP TotalSource, who aids us in recruitment, payroll and tax administration, employee relations, HR legal support, training and development, risk management and safety, regulatory compliance and termination guidance. • National Housing Corporation (NHC) 2016-03-09 Item 3 15 of 105 7 A 501 c-3 affiliate providing support for social services& grant-writing, NHC's mission is to improve the quality of life of Hyder residents. The dedicated full-time employee does this by either coordinating and monitoring property social services and/or searching for grants to fund needed social service programs. NHC is also available to provide consulting services to assist owners managing their programs in-house. • Compliance Our compliance department helps assure we follow the rules and regulations imposed by the agencies involved with our properties. This includes both allowing only qualified residents to reside on the property and assuring the resident files include all up-to-date documentation required by governing agencies. Acting as a combination audit-support-training function, the team conducts annual audits of each property, reviewing resident files as an outside agency would, reviews & approves all initial move-ins, and provides in-house training sessions to property staff, keeping them up-to-date with changing regulations. All this is done at no cost to the property, except for travel expenses that might be incurred. This is considered a support function as the operating managers are ultimately responsible for property residents & resident files. • Finance The Hyder finance department supports operations and property owners by providing a full-service, no-cost accounting, reporting, budgeting, accounts- payable team. At more than one employee for each 500 units, we offer a higher level of service than do most in the industry. Examples of our services include: 1. Prompt payment of all property accounts-payable 2. Timely processing of security deposits 3. Maintenance of accurate property books & records 4. Generating & distributing timely, accurate financial statements to owners, investors & interested outside agencies 2016-03-09 Item 3 16 of 105 s 5. Creating & distributing management reports which are instrumental in management's monitoring of property operating results 6. Creating, in the leadership role of a team (including property, field and corporate management, and owner representatives), a budget to comply with the governing agencies requirements while providing analysis to allow owner& management insight to expected property operating levels 7. Processing former tenant accounts receivables to outside agencies, and following up on collections & correspondence. • Treasury The banking & investment functions are performed by a full-time management company employee. The banking experience has been enhanced with the introduction of remote-deposit technology. This technology has allowed us to realize improved cash flows and internal controls while promoting employee efficiency and reducing costs by eliminating trips to the bank. Compensating balances have been used effectively to reduce, in some cases eliminate, other monthly bank fees, thus improving the property's cash flow. Our current investment program assures that all funds are insured while balancing the liquidity needed with the return available in the marketplace. Monthly reports are currently created allowing management& owners an easy way to monitor property/portfolio investments. This same Treasury employee also handles property tax exemption filings (after the initial year filing), on behalf of the owner, with the various counties. • Capital Asset Management Hyder has a full-time position with the primary responsibility of monitoring the capital request& approval process. This further assures that all appropriate steps required, including attaining appropriate bids & approvals, in the capital request process are taken. This position also gives us the added review of capital spending variances to the capital plan, allowing us to achieve the capital improvements targeted during the planning/budget process. 2016-03-09 Item 3 17 of 105 9 Additionally, Hyder has taken steps to negotiate cost-effective purchasing programs in the following areas: • Property & Liability Insurance (including an umbrella liability policy for each project of 26 million dollars) • Employee Health Insurance • Maintenance Supply purchases (Home Depot Supply) • Office Supply purchases (Staples) • Copier/Printer leasing (Konica—Minolta) • Telephone Services (AT&T) • Laundry services (WEB) All of these programs require corporate support to maintain, which is provided cost free to the properties. Please see Exhibit D for additional information about our services and Exhibit C for a detailed management plan. Qualifications of Staff Proposed for the Oversight of Pacific Pines Director of Housing Operations Michelle Pruitt has more than 17 years of Property Management experience. Prior to her current position, she was a regional supervisor with Hyder & Company since 2006. Michelle currently oversees a portfolio of 93 projects totaling 5,610 units. She is accredited in HUD, Tax Credit, USDA Rural Development, HOME, as well as many city sponsored programs. Kyle Beach, Assistant Director of Operations Kyle has been involved in real estate for over 10 years, with 4.5 years of experience with Hyder& Company. Kyle has worked closely with owners and social and supportive service coordinators to ensure services are provided to residents at the properties across his portfolio of 16 properties and over 1100 units. In addition to Tax Credit, HUD, and USDA RD certifications, Kyle is a licensed Broker in the state of California bringing expertise and additional knowledge to the portfolio he helps manage. 2016-03-09 Item 3 18 of 105 10 with the introduction of remote-deposit technology. This technology has allowed us to realize improved cash flows and internal controls while promoting employee efficiency and reducing costs by eliminating trips to the bank. Compensating balances have been used effectively to reduce, in some cases eliminate, other monthly bank fees, thus improving the property's cash flow. Our current investment program assures that all funds are insured while balancing the liquidity needed with the return available in the marketplace. Monthly reports are currently created allowing management& owners an easy way to monitor property/portfolio investments. This same Treasury employee also handles property tax exemption filings (after the initial year filing), on behalf of the owner, with the various counties. • Capital Asset Management Hyder has a full-time position with the primary responsibility of monitoring the capital request& approval process. This further assures that all appropriate steps required, including attaining appropriate bids & approvals, in the capital request process are taken. This position also gives us the added review of capital spending variances to the capital plan, allowing us to achieve the capital improvements targeted during the planning/budget process. Additionally, Hyder has taken steps to negotiate cost-effective purchasing programs in the following areas: • Property & Liability Insurance (including an umbrella liability policy for each project of 26 million dollars) • Employee Health Insurance • Maintenance Supply purchases (Home Depot Supply) • Office Supply purchases (Staples) • Copier/Printer leasing (Konica—Minolta) • Telephone Services (AT&T) • Laundry services (WEB) All of these programs require corporate support to maintain, which is provided cost free to the properties. 2016-03-09 Item 3 19 of 105 11 Property Management Hyder &iProfessionals LeadershO Stephen Margetic,President Steve has more than 20 years of experience managing affordable and market-rate properties. As President, CEO and Owner of Hyder& Company Property Management, he manages over 85 affordable properties totaling about 6,000 units throughout California. He is also a principal partner in the management of two campuses totaling 162 units of senior assisted and nursing units in St. Louis, Missouri. Prior to joining Hyder & Company Property Management in 2004, Mr. Margetic spent 12 years managing a portfolio of 10,000 units, which included more than 2,000 units of senior housing. A Certified Public Accountant from the state of Illinois, Mr. Margetic has been a member of both the American and the California Association of Homes and Services for the Aging, as well as serving on the Owners' Advisory Board of the National Investment Conference. Gary Da Prato, Vice President ofAdministration Gary has 14 years of experience in Program Compliance for subsidized housing projects in California with the California Department of Housing &Community Development(HCD). Program compliance included monitoring housing policy issues dealing with California Redevelopment Agencies administering the California Housing Rehabilitation Program &Earthquake Assistance Program and developing regulations for the Rental Housing Construction Program. One of his primary duties is to act as a liaison between our firm and various Governmental Agencies and the Owners to keep current in the ever-changing requirements in the field of subsidized management. He has 27 years of experience in the affordable housing industry and is responsible for new business development and contract administration. Ana Rascon, Controller Ana joined the Hyder team in 2004 as a Staff Accountant. In three short years she was promoted to Accounting Manager, supervising all Staff Accountants and A/P personnel. As Accounting Manager she also served as Hyder's liaison to software developers,helping tailor fit software solutions to meet the company's needs. This year she was promoted to Controller, overseeing all of Hyder's accounting activities, in addition to continuing her role as liaison with software developers. Michelle Pruitt,Director of Housing Operations Michelle has more than 16 years of Property Management experience. She has been a regional supervisor with Hyder& Company since 2006. Michelle currently oversees a portfolio of 89 projects totaling 5,552 units. She is accredited in HUD, Tax Credit, USDA Rural Development,HOME, as well as many city sponsored programs. Dee Dee Rogers,Director of Compliance Dee Dee has 18 years of experience in property management of affordable housing developments. She is a Certified National Compliance Professional and Site Compliance Specialist.Her primary duty is to coordinate the monitoring of all affordable programs including TAX CREDIT,HUD, USDA-RD, BOND, MHP, RHCP,HOME, and Redevelopment Agencies, City or County Programs and all other regulatory requirements including Fair Housing. She is responsible for reviewing and approving tenant occupancy,transfers to other units and changes of ownership. She also monitors tenant file documents to insure compliance with program regulations and coordinate necessary tenant terminations due to fraud. These duties are carried out in strict compliance with Federal, State and Tenant Landlord laws. In addition, Ms. Rogers prepares a variety of reports and correspondence pertaining to inquires from owners, investors and regulatory agencies. 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226 Phone: (760) 591-9 73 7 Fax: (760) 591-9784 www.hydereo.com 2016-03-09 Item 3 20 of 105 12 Property Management Hyd e r Professionals Arthur Mendoza,Director of Information Technology& Occupancy Specialist Art has served Hyder&Company for over 25 years as a USDA-RD Certified Manager and USDA-RD Farm Labor Occupancy Specialist. He is responsible for maintaining and producing detailed records of eligibility, status and compliance required by agencies and owners for Hyder's entire portfolio of properties. Previously he provided IT services for both Mercy and Scripps Memorial Hospitals. 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226 Phone: (760) 591-9 73 7 Fax: (760) 591-9784 www.hyderco.com 2016-03-09 Item 3 21 of 105 13 Organization Information Hyder& Company 1649 Capalina Road, Suite 500 San Marcos, California 92069 (760) 591-9737 Hyder& Company is a for-profit, S-Corp corporation. Management began in 1964 and Hyder& Company has been providing property management services for affordable housing developments ever since. State of California Real Estate Broker's License Number 00466921 2016-03-09 Item 3 22 of 105 14 Hyder & Company EXECUTIVE MANAGEMENT& OPERATIONS STEVE MARGETIC PRESIDENT AND CEO JENNY LAM RECEPTION ART MENDOZA GARY DA PRATO DEE DEE ROGERS YVONNE PHAM L DIRECTOR OF VICE PRESIDENT JAN BURNS ANA RASCON DIRECTOR OF BUDGET&FINANCIAL INFORMATION OF BUSINESS TREASURER COMPLIANCE CONTROLLER REPORTING TECHNOLOGY DEVELOPMENT SEE I.T. SEE SEE CHART MICHELLE PRUITT COMPLIANCE ACCOUNTING DIRECTOR OF CHART CHART OPERATIONS EfAV'D GOMEZ CARMEN RINGER DIRECTOR OF RESERVE ACCOUNT KATHIBIEM RANDYBIRNKRF AINTENANCE& SPECIALIST HR&PAYROLL PROGRAMMER SAFETY ADMINISTRATOR I ANALYST LAURA ONESY ADMINISTRATIVE ASSISTANT MARIA AGHA I I KYLE BEACH I SUSAN LORENZ REGIONAL PROPERTY REGIONAL PROPERTY SENIOR AREA SUPERVISOR SUPERVISOR MANAGER Operations 2016-03-09 LUPE GOMEZ I I TERRI NVILDESPI NO REGIONAL PROPERTY REGIOAA PROPERTY SUPERVISOR SUPERVISOR JOANNE GOMEZ AREA MANAGER Item 3 JUANITA NIELSEN AREA MANAGER HAN BIRNKI CORPORATE GRANTS 23 of 105 15 OLGA BOUTKOVSKAI) STAFF ACCOUNTANT LAUREN BEACH COMPLIANCE& TRAINING ANALYST 2016-03-09 Hyder & Company ACCOUNTING ANA RASCON CONTROLLER JUANA ESTRADA I I MANDI LE STAFF ACCOUNTANT STAFF ACCOUNTANT COMPLIANCE DEE DEE ROGERS DIRECTOR OF COMPLIANCE MARIA BUENO I I VIVIANATORRES MPLIANCE ANALYST COMPLIANCE ANALY! LORENA LOPEZ STAFF ACCOUNTANT CAROLINA MUJICA COMPLIANCE ANALYST Item 3 LYNN TRAN I I CHLOE YANG STAFF ACCOUNTANT ACCOUNTS PAYABLE JENNIFER CORONA ACCOUNTS PAYABLE INFORMATION TECHNOLOGY ART MENDOZA DIRECTOR OF INFORMATION TECHNOLOGY CRYSTIL HAAS IT SPECIALIST 24 of 105 16 O 6 w 6 w W N Ul 0 0 0 NO11V179SSV 1NIW39VNY6y 9NISNOH 316V000JlV IVNOIIVN IfWHVN 3AUVIIINl N e i'* �+v�rr,ayay�vmsou�±t 4 , Tmm IT . o � � s� w co 4aka 1N lN3SVNdW ADEdMAci N33?:IE) 2:10=1 WiN30MAO ay}jo uoijaldwoo ayj aol zauaoE) P!Ae(] aziubooaa NOliVIOOSSV 1N3W39dN` jN JNisnO -j 3li3V( ltl0=I=Id IVNOlivN 3H1 QNd 31niliSNI NOIldo[ (i3 NOliVIOOSSV 1N3M1 WdV IVNOIIVN JHJ NdDDO 1NIN3JMIN kt'd3dOdd NBHO 80J IVIIN303HO Hyder Property Management Professionals Budget 1649 jid jai &a64uite 500, San Marcos, w A 069-1 it OM hone: (760) 591-9737 : (7 04 199-9784 Pacific Pines Condominiums Fee Structure 1. Agent's Compensation. $65.00 per unit per month 2. Set-up/Transition Costs: Hyder & Company is not responsible for any substantial deferred maintenance items prior to the beginning date of this Management Contract. The correction of any substantial deferred maintenance items shall not be included as part of the Management Contract and it will be necessary to execute a subsequent agreement for their correction. Hyder & Company is not responsible for any material errors in tenant files prior to the beginning date of this Management Contract. The correction of material errors in files prior to this management contract shall not be included as part of the Management Agreement. 3. Services to be covered by the management fee include the following: ✓ Off-site overhead ✓ Supervision ✓ Preparation of financial statements and reports as agreed ✓ Payroll and benefit processing ✓ Off-site computer processing ✓ Property Management • Rent collection • Delivery and follow-up on notices • Pre-tenant screening of qualified low-income households • Annual tenant income recertification • Court appearances for evictions • Maintain wait list • Move-in/move-out walk-throughs • Account processing ✓ Maintenance Supervision o Soliciting bids 2016-03-09 Item 3 27 of 105 18 • Assisting in defining the job and defining specifications • Scheduling, supervision, inspection • Work order processing and tracking • Preparing maintenance and operational forecasts • Monthly status reports ✓ Financial Management • Project bookkeeping and accounting • Providing detailed narrative reports to highlight important issues, noting any extraordinary income or expenditure • Providing an easy to read overview of the current month's activities • Providing clear financial statements • Budget preparation • Cash flow analysis 4. Services not covered by the fee include the following: • Employee costs including maintenance payroll, benefits, taxes, social security, bond, E.P.L. & workers compensation insurance • Operating expenses • Maintenance & repair supplies and contracts • Annual audit and other owner reports not required by this contract • Utilities 2016-03-09 Item 3 28 of 105 19 Hyder Property Management Professionals References 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226 Phone: (760) 591-9737 Fax: (760) 591-9784 www.hyderco.com 2016-03-09 Item 3 29 of 105 O q � }\ }\ }\ }\ r � - - - - O \\\ \\ \\} \\ \\\ \\ \\\} /\ M � @ \\\ \\ \\ 2\ \\ Q\ \\\ \ \ }\\ \}\ }\ \\\ }\ \\\ }\\ \ O i_ )} i Hyder Property Management Professionals I V. A ddition a I Exh ib l*ts 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226 Phone: (760) 591-9737 Fax: (760) 591-9784 www.hyderco.com 2016-03-09 Item 3 31 of 105 Client#: 138854 Exhibit A HYDECOMP1 ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE 08/182015YY) 08/18/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Shaneeza Johnson Propel Insurance PHONE g00 499-0933 FAX 866.577.1326 Seattle Commercial Insurance AMA Lo Ext: Alc,No ADDRESS: shaneeza.johnson @propelinsurance.com Se 4th Ave,Suite 3200 INSURER(S)AFFORDING COVERAGE NAIC# Seattle,WA 98104 INSURERA:Northfield Insurance Company 27987 INSURED INSURER B:Torus National Insurance Compan 25496 1649 and Company INSURER C:Travelers Indemnity Company of 25666 1649 Marcos, Rd#500 National Union Fire Insurance 19445 INSURER D San Marcos, CA 92069 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE ADDL SUBR. POLICY EFF POLICY EXP LIMITS INSR WVD POLICY NUMBER MM/DD/YYYY MM/DD(YYYY A GENERAL LIABILITY X X WS248753 08/0112015 08/01/2016 EACH OCCURRENCE $110001000 X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED PREMISES Ea occurrence $100,000 CLAIMS-MADE �OCCUR MED EXP(Any one person) s5,000 X Property Damage$500 PERSONAL&ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP!OP AGG $2,000,000 POLICY PRO LOC $ JECT C AUTOMOBILE LIABILITY X X BA2G211154 8/01/2015 08/01/201 COMBINED SINGLE LIMIT Ea accident 1,000,000 X ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED t id Per accident) $ AUTOS AUTOS BODILY INJURY( ) HIREDAUTOS NON-OWNED PROPERTYDAMAGE $ AUTOS Per accident B X UMBRELLA LIAB X OCCUR 71369P150ALI 0810112015 08/011201 EACH OCCURRENCE $5,000000 EXCESS LIAB CLAIMS-MADE AGGREGATE s5,000,000 DED I I RETENTION$ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITY Y/N TORY LIM T E ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICERIMEMBER EXCLUDED? N/A E.L.EACH ACCIDENT $ (Mandatory in NH E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ D Crime/Employee 01602274 8/01/2015 08101/201 $750,000 Dishonesty ll DESCRIPTION OF n?ERATIONS!LOCATIONS/VEHICLES(Attach ACORD 101,Additional Remarks Schedule,if more space is required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE �OR16-93-Q9 'te� 3 ©1988-2010 ACORD CORPC?�ICa fAirbil reserved. ACORD 25(20 of The ACORD name and logo are regls ere marks of ACORD #S1832878/M1832636 SJ00 21 `��°R°� CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDDIYYYY) 07/10/15 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Aon Risk Services,Inc of Florida NAME: Aon Risk Services,Inc of Florida 1001 Brickell Bay Drive,Suite#1100 PHONE FAX Miami,FL 33131-4937 A/C,No,Ext: 800-743-8130 A/C,No):800-522-7514 EMAIL ADDRESS: ADP.Col.Center@Aon.com INSURER(S)AFFORDING COVERAGE NAIC# INSURER A: National Union Fire Ins Co of Pittsburgh 19445 INSURED NSURER B: ADP TotalSource I,Inc. 10200 Sunset Drive INSURER C: Miami,FL 33173 L/C/F INSURER D: Hyder and Company DBA Hyder Property Management Prof 1649 Capalina Road Suite 500 INSURER E: San Marcos,CA 92069 INSURER F: COVERAGES CERTIFICATE NUMBER:1020506 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LIMITS SHOWN ARE AS REQUESTED. INSR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSR WVD (MM/DD/YYYY) (MM/DD/YYYY) 47CA MERCIAL GENERAL LIABILITY EACH OCCURRENCE $ DAMAGETO RENTED LIM S-MADE OCCUR PREMISES Ea occurrence $ MED EXP(Any one person) $ PERSONAL 8 ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: 3ENERAL AGGREGATE $ POLICY 71 PROJECT 7 LOC PRODUCTS-COMP/OP AGG $ OTHER $ AUTOMOBILE LIABILITY Ee accciden SINGLE LIMIT $ ANY AUTO 30DILY INJURY Per person) $ ALL OWNED SCHEDULED AUTOS AUTOS BODILY INJURY Per accident $ NON-OWNED PROPERTY DAMAGE HIRED AUTOS AUTOS Per accident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE GGREGATE $ DEC I I RETENTION$ WORKERS COMPENSATION X PER OTH- A AND EMPLOYERS'LIABILITY Y/N WC 034126756 CA 07/01/15 07/01/16 STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? NIA E.L.EACH ACCIDENT $ 2,000,000 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 2,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 2,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(ACORD 101,Additional Remarks Schedule,maybe attached if more space is re quired) All worksite employees working for HYDER AND COMPANY DBA HYDER PROPERTY MANAGEMENT PROF,paid under ADP TOTALSOURCE,INC 's payroll,are covered under the above stated policy. CERTIFICATE HOLDER CANCELLATION Hyder and Company dba Hyder Property Management Prof SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 1649 Capalina Road THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Suite 500 ACCORDANCE WITH THE POLICY PROVISIONS. San Marcos,CA 92069 AUTHORIZED REPRESENTATIVE // ��yy / Oft l A ��YLC�bx Q;zc O 16,tida ©1988-2014 ACORD CORPORATION.All ri hts reserved. ACORD 25 2041$-03-09 The ACORD name and Ilt@ke3stered marks of ACORE 33 of 109 22 Client#: 138854 HYDECOMP1 DATE(MM/DD/YYYY) ACORD.,,, CERTIFICATE OF LIABILITY INSURANCE 1 8/27/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Shaneeza Johnson NAME: Propel Insurance PHONE 800 499-0933 FAX 866.577.1326 A/C,No,Ext: (A/C,No): Seattle Commercial Insurance E-MAIL ADDRESS: shaneeza.ohnson P ro elinsurance.com 925 4th Ave,Suite 3200 INSURER(S)AFFORDING COVERAGE NAIC# Seattle,WA 98104 INSURER A National Union Fire 19445 INSURED INSURER B: Hyder and Company INSURER C 1649 Capalina Rd#500 INSURER D San Marcos, CA 92069 INSURER E INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSR WVD POLICY NUMBER MM/DD/YYYY MM/DD/YYYY GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY PRA EMISESOEa occTu ence $ CLAIMS-MADE F-I OCCUR MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GENERAL AGGREGATE $ GENT AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ POLICY M PRO LOC $ JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident $ ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE $ HIRED AUTOS AUTOS Pera ccident UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED I I RETENTION$ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITY Y/N TORY LIMITS ER ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? ❑ N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Crime 016022274 08/01/2015 08/01/2016 $750,000 Ded. $5,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(Attach ACORD 101,Additional Remarks Schedule,if more space is required) Evidence of insurance CERTIFICATE HOLDER CANCELLATION Evidence of Insurance SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE 7 'n ©1988-2010 ACORD CORPORATION.All ri hts reserved. ACORD 25(2=16'03pQr9 The ACORD name and logo arektprAdlarks of ACORD 34 of 109 #S18382031M1838201 SJ00 23 Client#: 138854 HYDECOMP1 DATE(MM/DD/YYYY) ACORU,, CERTIFICATE OF LIABILITY INSURANCE 01120/2016 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Shaneeza Johnson NAME: Propel Insurance PHONE g00 499-0933 FAX 866.577.1326 A/C,No,Ext: A/C,No Seattle Commercial Insurance E-MAIL ADDRESS: shaneeza.ohnson @P ro elinsurance.com P 925 4th Ave, Suite 3200 INSURER(S)AFFORDING COVERAGE NAIC# Seattle,WA 98104 INSURERA:Underwriters At Lloyd's London 15792 INSURED INSURER B: Hyder and Company INSURER C 1649 Capalina Rd#500 INSURER D San Marcos, CA 92069 INSURER E INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSR WVD POLICY NUMBER MM/DD/YYYY MM/DD/YYYY GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY PRA EMISESOEa occTu ence $ CLAIMS-MADE F-I OCCUR MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GENERAL AGGREGATE $ GENT AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ POLICY M PRO JECT M LOC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE $ HIRED AUTOS AUTOS Pera ccident UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED F I RETENTION$ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITY Y/N TORY LIMITS ER ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? ❑ N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Errors&Omissions 000000151112D 810112015 081011201 $2,000,000/$2,000,000 Retro Dates: Ded: $10,000 7/1/06 $1 M/$1 M 9/23/13 $1 M/$2M Reto Date: 8/01/14 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(Attach ACORD 101,Additional Remarks Schedule,if more space is required) CERTIFICATE HOLDER CANCELLATION Evidence of Insurance SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE T2 • 'n ©1988-2010 ACORD CORPORATION.All ri hts reserved. ACORD 25(2=J 6-03pQ,9 The ACORD name and logo arektPr arks of ACORD 35 of 106 #S2026284/M1820539 SJ00 24 N a �N A2 X X Li Li - T O X X X X X X X X X X X X e U o U .. O E` x x x M W x x x x x x X X X x x x x x x x x x NX 0 Z x x xx xx x X X X X X X Xxxx xx X X 0 m o� X X X X X X X X 2y 0 ry r Dm 0 Ci x� Cm o X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X111, X X X X It X X X X X X X X U OC N o Q X X X X X X X 11 X X X 11 11 X X X X r N O. O =o X X X E- N =o X En ='c x xx xx x x t x Ea aN M _� X XX XXXX X X X X XXXX X X XX X X X E n a =a x x x Nx oa M Ux X X X W � }� m a a a a Ua a x x x x = rc rc rc X U LL' LL'X X 2 K K K K Q = X X X X X Sk U tt > = F m E E E E E E E E E E a E o E o E o E E E E E E E o E E g E E E q q q m E E E E q q E E q E E E E E E E E E E E E E o E q E E E E q E o g E E E E o o E g E IIII o u z u.� _ _ _ _ - -- - - -- - - - - - -- - -- - - -uEuuuEEE'^ - -- -aEEuuEuuuuLLUULLUUUUU EuuuuEu''EEuuuu'E "Ev- N O 2 M O III d F E E Z = 1 a E _ \1/ m y Q -' c c'" m m E `° c c `o 'm E EE c v c c c x E x x E 4 c 'TEE o = m c E m a c g E c q'c m o o c o m m t m a E 'E x o o c m E m E._m m m a '^ E c =q w _-6 .E m E ° E _ c E Q m ..o q m L g q c.. " `w v o ,tee g c m E Ow ` N N N m __ — a a m fn m m m U__'m v w w c `"; w m a o`o _ x W o m E _x x a= Q v a_ w N E E c y—E a m Q d v 9 a a a E o N 9 a v'o Q L U c 3 1 N c N c J =a = ° 'c Q___- - Q x:: Q a Q m" " o °v v w E m°in _= w °>q 000 x a c t� > -- - m>t9 wm'-^ui°i u°i u°i'n c E E °m E'x°= qa>Y 3aa oC`u m3uz' .`' q�a��w NN ,� - — �_ �r�—° .`Y° °"'a ` �=m`i�i�i�i��aaaU c =_ _ ° ° o 0 0 o m °in v v w a o y q �°n u o o > m'w x x°w °w °w:M. 2 v �¢`Q`m°m`i�i�i�i�i�i�i�i�i�u ui�i�i�i�i�i�i�i�i�i�o o°w w'u u`u'U°x"Y�� ������Z. ZLLLLLLLLLLLLLLLLLLLLLLLL LL'LL'...NNNNNNN LO N a N m2 _T O .. O E` x w M 0 x 0 0 0 X m o� D'; X X 2y ry ry Dm XIS X X X X X X U X Q X X N O. O - E" N En =c x x Ea aN M _ x x En a a Nx oa Ux X 2� X V � a Ua x XO a 0 U X 2 Q = X U tt E E o E E g E q o f c c'c a` O 1 M c a E' � E r E ELOVq oQa E O o =a� q�Q �0>y3a d > =v r m E x x v 0= f g q o o m m m m Exhibit C SAMPLE MANAGEMENT PLAN FOR PROJECT NAME 1. THE ROLE AND RESPONSIBILITY OF THE OWNER AND RELATIONSHIP AND DELEGATIONS OF AUTHORITY TO THE MANAGING AGENT. (Owner) appoints Hyder & Company, (Agent) as agent for the management of the residential units at PROJECT NAME located at PROJECT ADDRESS and Agent accepts the appointment. The Owner has entered into a Management Contract with Hyder & Company, hereinafter referred to as Agent or Managing Agent. a. There is no legal or corporate relationship between the Owner and the Agent with the exception of the Management Contract. There is no identity of personnel, proximity or sharing of offices, or any other identity of interest. There is no relationship that would create a conflict of interest. b. The Site Manager will supervise the activities of the administrative and maintenance staff on the project. The Site Manager will be directly responsible to the Managing Agent who will set forth the responsibilities of day-to-day operations. The Managing Agent will be directly responsible to the Owner. The Agent will make all decisions regarding the day-to-day operations of the project without consulting the Owner or in the event of extreme emergency, make decisions without consulting the Owner. The Agent will notify the Owner as soon as possible after any emergency decisions are implemented. C. The Agent will consult the Owner regarding all policy matters or those which the Agent is not authorized to handle under the terms of the Management Contract, and on all other matters which are of significance to the project. The Agent will meet with the Owner at regular intervals established by the Owner to review all project business and to update the Management Plan as directed by the Agency. d. The Owner will name an authorized contact person who will have total authority to act on behalf of the Owner and make all necessary decisions on Owner's behalf. The Owner will notify the Agent in writing of the name of the contact person prior to the inception of the Agreement, and thereafter when the contact person is changed. Agent will deal directly and exclusively with the authorized contact person. e. This Management Plan identifies decisions and requirements of the Owner including but not limited to disbursement amounts requiring Owner approval and documents required from the Owner. 1 2016-03-09 Item 3 38 of 105 26 f. The responsibilities of the Owner and the Agent are clearly set forth in this document. All basic responsibilities and duties are clearly covered in this document and Agency's rules and regulations. g. The pro-rata division of singularly-incurred operating expenses that are common to the parties and purchased by the Managing Agent are: 1) The fidelity insurance, which is allocated to each project and the corporate office by number of employees at each location. 2) The professional liability insurance, which is allocated to each project and the corporate office by the number of employees at each location. 2. PERSONNEL POLICY AND STAFFING ARRANGEMENTS. a. All on-site personnel shall be contracted service providers or employees of Agent and shall be paid from the Operating Account as an expense of the project. Pursuant to the amounts provided in the Budget, Agent shall at all times have sufficient personnel physically present at the Project for the full and efficient performance of its duties under the Management Contract, including physical presence of responsible persons at such times as reasonably may be requested by Owner. The employees, their job descriptions, and salaries, shall be determined by Agent. All hiring will be in strict conformance with equal employment opportunity requirements provided by the Department of Fair Employment and Housing with regard for race, color, religion, sex, handicap, familial status, or national origin. b. The staffing plan for this property will include a manager and office staff as necessary to operate the project together with maintenance staff as required and as approved in the budget. Employees are never "on call" outside of normal duty hours, unless specifically required to cover emergency calls on a particular proj ect. Mandatory Prerequisites for All Employees: Must possess high moral character, sound fiscal integrity, and qualify for fidelity bond. Must be able to speak, read, write and understand English at least to the level of understanding the Injury and Illness Prevention Plan, and the ability to read all safety and warning labels and follow written or verbal instructions. Must be able to report in English to supervisory staff and authorities any emergency conditions that may exist from time to time. Must additionally be able to understand and comply with both written and verbal instructions given in English regarding office operations, computer operations and technical Agency Requirements. 2 2016-03-09 Item 3 39 of 105 27 Job Descriptions: Site Manager: The Site Manager is in sole charge of the housing complex and as such must manage and direct operations of the housing project in accordance with the policies and procedures prescribed by the Owner, the governing agency and the Managing Agent. In order to qualify for this position, an employee must be competent in typing, spelling, telephone techniques and basic mathematics. In some instances, the employee will be required to be bilingual in English and Spanish or whatever language is predominate in a given community. The following responsibilities of the Site Manager are listed below: Make certain that all outside contractors or sub-contractors provide current certificates of liability and workers compensation insurance before any work can be done on the property. Prepare payment requests and accounts payable. Purchase approved supplies and arrange for approved outside services, such as trash collection, utility service, mail service, telephone installation, exterminators, etc., as required. Become proficient in the operation of the project computer and software. Computer literacy is preferred. Assist prospective tenants in preparing applications for initial eligibility and Recertification, rent apartments, complete lease agreement form and conduct entry interviews with new tenants, outlining conditions and terms for occupancy. Review housing applications, select tenants, and assign dwelling units. Is responsible to collect rents and issue receipts to tenants. Implement this Management Plan and Agreement. Be totally familiar with company policy and the Manager's Handbook provided by employer. Establish good tenant relation policies and adhere to housing assignment procedures. Promote harmonious relationships among tenants, housing personnel, and persons of neighboring communities. Resolve complaints of tenants. Maintain good working relations with the local police and fire departments, governing officials, and other community resources that are programmed and designed to assist the tenants. Must attend educational courses as directed and pass Agency-required or Employer tests. Must become fully competent in agency rules and procedures. Must be able and willing to follow all procedures in Manager's Handbook and Agency Instructions. 3 2016-03-09 Item 3 40 of 105 28 Assistant Site Manager: The Site Manager and Assistant Site Managers are in charge of the housing complex and as such must manage and direct operations of the housing project in accordance with the policies and procedures prescribed by the Owner, the governing agency and Management Agent. The position requires a great deal of personal contact with other people. The assistant manager must be able to handle problems with discretion and fairness. Their independent judgment can determine the success or failure of the project. In order to qualify for this position an employee must be competent in typing, spelling, telephone techniques and basic mathematics. In some instances, the employee will be required to be bilingual in English and Spanish. The Assistant Site Manager will follow the instructions of the Site Manager in all of the following areas: Make certain that all outside contractors or sub-contractors provide certificates that provide proof of liability and workers compensation insurance before any work can be done on the property. Prepare payment requests and accounts payable, receive and account for funds. Purchase approved supplies and arrange for approved outside services, such as trash collection, utility service, mail service, telephone installation, exterminators, etc., as required. Become proficient in the operation of the project computer and software. Computer literacy is preferred. Assist prospective tenants in preparing applications for initial eligibility and recertification. Rent apartments. Complete lease agreement form and conduct entry interviews with new tenants, outlining conditions and terms for occupancy. Review housing applications, select tenants, and assign dwelling units. Collect rent and issue receipts. Implement this Management Plan and Agreement and the Affirmative Fair Housing Marketing Plan. Be totally familiar with company policy and the Manager's Handbook provided by employer. Establish good tenant relation policies and adhere to housing assignment procedures. The Assistant Manager is a key part of promoting harmonious relationships among tenants, housing personnel, and persons of neighboring communities. Resolving complaints of tenants. Maintaining good working relations with the local police and fire departments, governing officials, and other community resources and social programs designed to assist the tenants and enhance the quality of life at the complex. 4 2016-03-09 Item 3 41 of 105 29 Must attend educational courses as directed and pass Agency-required and Employer tests. Must become fully competent in agency rules and procedures. Must be able and willing to follow all procedures in Managers Handbook and Agency Instructions. Office Clerk: In order to qualify for this position an employee must be competent in typing, spelling, telephone techniques and basic mathematics. In some instances, the employee will be required to be bilingual in English and Spanish. The employee will assist the Site Manager in qualifying applicants and leasing units in compliance with the appropriate agency requirements. Additionally, the employee must be competent in filing and all other office procedures. The clerk will be trained in computer operations for the specific program of the apartment complex. The employee must have good "people skills" in order to deal with the public in an efficient and courteous manner. The clerk will represent the "front line" in meeting the public and in dealing with tenant complaints. This position requires a person with a professional and friendly disposition who can work with people on a regular daily basis, follow instructions, and learn reasonably quickly. All clerical staff members must be trained in the program requirements and pass all required tests so as to be certified in the appropriate subsidy program. Employee must be able to speak, read, write and understand English in order to read and understand the Injury and Illness Prevention Plan and to converse with others in case of emergencies. Must also be able to follow written and spoken instructions regarding office and computer procedures and the handbook instructions. This position does not include showing apartments, inspecting apartments, maintenance work or any other activities outside the office. Maintenance Director: Assist in the development of the maintenance plan for the overall efficient operation of the project, perform all necessary work, inspect and evaluate physical condition of buildings and grounds and schedule and provide continuing repair and maintenance work as prescribed below. Plan and perform maintenance work. Direct and supervise work of maintenance personnel. Prepare and post daily work schedule, including working hours for staff. Conduct follow-up inspections to ascertain that all work is performed. 5 2016-03-09 Item 3 42 of 105 30 Plan all maintenance work with Site Manager prior to implementation. Regional Supervisor must approve all purchases prior to any purchase of supplies, equipment or services. Maintain on a daily basis the time records of all maintenance employees so as to conform to the requirements of the Federal and State Governments. Make certain that all maintenance employees update their time cards daily. Assist in planning and implementation of a preventive maintenance program. Take prompt corrective action on deficiencies. Respond to written requests from tenants reporting a need for repairs (work orders). Coordinate activities of all workers to assure timely accomplishment of repairs on buildings, electrical, plumbing, heating, ventilating, air-conditioning, watering systems, and mechanical equipment. Maintain and clean public areas such as halls and laundry rooms. Develop a plan for tenant assistance and support in keeping the project clean and safe in accordance with prescribed standards. Responsible for safeguarding, accounting and inventorying of supplies, tools, equipment and all property owned by the project. Obtain labor and material costs and completion estimates for major repairs, renovations or replacement of equipment. Be responsible for the completion of any such work once approved by the Regional Supervisor. Make certain that no purchases of supplies, equipment or services are made by anyone without the prior approval of the Site Manager and Regional Supervisor. Plan, schedule and perform all interior and exterior janitorial work, repair and maintenance at no additional labor cost to the project, including but not limited to: Repairing, plumbing and electrical systems, painting and cleaning apartments, repairing doors, locks, screens, windows, and cabinets as well as tools and equipment belonging to the project, policing and cleaning of all common areas and laundry rooms, maintaining plantings and irrigation system including all mowing, trimming, edging, pruning, cultivating, aerating, fertilizing, and watering if applicable. Also, maintaining parking lots and other common areas to include sweeping, striping, patching, and policing, as well as playground equipment maintenance and repair. All maintenance personnel must be of strong and sound body and mind, and possess the following: 1. The ability to work on a continuous basis and be prompt. 2. Be courteous to the tenants, guests, and other employees. 6 2016-03-09 Item 3 43 of 105 31 3. Dress according to the dress code and standards established by Managing Agent. 4. Always work on behalf of your employer, follow instructions, and do nothing to harm your employer. 5. Always comply with instructions given by manager and with company policy. Other Requirements: This position requires excellent physical and mental health and considerable strength. There is a great deal of lifting, bending, stooping, twisting, reaching, grasping, manual dexterity with both hands and arms, climbing stairs, ladders, and walls and moving heavy objects. On a daily basis, it may be necessary to move heavy objects such as furniture, major appliances or other items weighing over 50 pounds. The employee must be knowledgeable in all safety precautions to be taken when doing this heavy work, and be capable of handling heavy loads within the requirements of the Injury & Illness Prevention Plan. Any violation of the Company Safety Policies is cause for immediate termination. Must be able to speak, read, write and understand English at least to the level of understanding the Injury and Illness Prevention Plan, and the ability to read all safety and warning labels and follow written or verbal instructions. Must have the specific ability to follow technical instructions such as installing hot water tanks, furnaces, disposers, stoves, air conditioners and other items found at an apartment complex. Must be able to report in English to supervisory staff and authorities any emergency conditions that may exist from time to time. Housekeeper: This position provides clean, sanitary, comfortable, orderly and satisfying surroundings for residents and employees. The housekeeper promotes sanitary conditions cleaning floors, walls, windows, furniture, kitchens and appliances, bathrooms and fixtures. The housekeeper will be required to lift, carry, walk, sit, push, pull and work a flexible schedule, must be able to move continuously during work hours and able to lift and/or carry 50 to 75 pounds. Specific duties may include but are not limited to: vacuuming floors and furnishings,mopping hard surface floors, cleaning, dusting and polishing furniture, cleaning walls and windows, cleaning and disinfecting kitchen and bathroom, emptying and sanitizing waste baskets. Clean all air vents. Damp mop all corridor floors, lobby, dining areas and others daily. Operates various mechanized cleaning equipment, such as vacuums,polishers, buffers, etc... If required, strip beds and gather all laundry for delivery to laundry service; make beds and set towels. Maintain vacuums, cleaning caddies and supplies used to perform job. Record supply inventory at home as directed by supervisor. Inform supervisor when cleaning or house supplies are low. 7 2016-03-09 Item 3 44 of 105 32 Dust,vacuum and clean leasing office. Water plants in office and office building. Report any needed repairs immediately to supervisor(such as leaky faucets or toilets, loose tile,broken windows, etc). Perform errands and special projects as requested by supervisor. Observe established policies and procedures. Perform other job duties including but not limited to grounds maintenance or other property management functions as needed and requested by supervisor. Contact with all levels of personnel within company, temporary help, owners, residents,vendors and contractors. Working Conditions: Full-time and to cover other employee vacations or time off. Requires some weekends,holidays and occasional evenings. Skills and Educational Requirements: 1. Ability to communicate effectively both verbally and in writing. Possess basic math skills. 2. Ability to perform a variety of tasks often on short notice. 3. Ability to handle a fast-paced,varied and busy work environment. 4. Ability to work alone and to be self-motivated and organized. 5. Ability to lift 50 to 75 pounds 6. Possess positive teamwork attitude. Company Standards: 1. All company and client information must be kept strictly confidential. 2. The highest standards of accuracy will be maintained in all data recorded and work performed. 3. Conformance to the rules and regulations of property management as set forth by California Residential Landlord/Tenant Statutes and Federal Fair Housing Laws. 4. All temporary help, owners, tenants,vendors and contractors and any other person contacted on the telephone or in person will be treated in a friendly, personable and professional manner. 5. Neat and well-maintained attire, hair and appearance to be maintained at all times. Uniform and dress code in accordance with personnel policies to be maintained at all times. All Employees: Employees will conform to all Agency requirements as well as the policies established by the Owner, which become part of the Agent's policies. All employees will be paid by the Agent including state and federal payroll taxes and unemployment taxes, FICA taxes, and all other costs of employment including 8 2016-03-09 Item 3 45 of 105 33 workers compensation insurance, employment practices liability insurance, employee medical insurance, overtime pay, bond and any other compensation or related costs. Agent will be reimbursed for all costs made to or on behalf of all employees including, but not limited to, the aforementioned list. Agent will advise Owner of all employee or former employee claims for compensation that Agent believes are unwarranted. Owner will instruct Agent as to Owner's desire in the disposition of the claim (payment,negotiation, hearing, or litigation). Agent will proceed according to Owner's directive. Any compensation or award to any employee or former employee including all related costs, legal fees and other fees, will be paid to Agent from the project operating account upon final disposition of the claim. C. The Site Manager will be directly accountable to the Managing Agent. All other on-site personnel will be directly accountable to the Site Manager. d. All employees (and contractors) will be oriented to comply with the program requirements. All managers are fully trained in the Agency rules and regulations. The Managing Agent is fully trained and knowledgeable in all aspects of assisted housing management and regulations. The Agent trains all management employees in the certification process and all management functions. The Agent sends staff personnel to training programs on HOME, RDS, HCD, Ca1HFA, Fair Housing, Section 504, and L.I.H.T.C., as appropriate. 3. PLANS & PROCEDURES FOR MARKETING UNITS; ACHIEVING AND MAINTAINING FULL OCCUPANCY, AND MEETING HUD FORM 935.2 AFFIRMATIVE FAIR HOUSING MARKETING PLAN" REQUIREMENTS. a. Agent shall carry out the marketing activities including tenant screening interviews prescribed in this Management Plan or consistent with current practices used to market the property to potential tenants. b. The Agent is in charge of marketing the property. We will make certain that all groups, both minority and non-minority, handicapped persons and those least likely to apply are given the opportunity to have the knowledge that our subsidized housing project exists and that they will not be discriminated against on any basis. C. The Site Manager will place new applicants on the waiting list after complying with the procedures established. The waiting list will conform to the requirements of the Agency. The "Fair Housing" poster, "Justice for All" poster, will be displayed on site. A Project Information Package will be prepared. This will contain the following: A description of the project location. 9 2016-03-09 Item 3 46 of 105 34 The size and number of dwelling units. A summary of eligibility requirements. Application Form. d. Should it be necessary, marketing will be done by local radio and newspaper advertising in both English and in non-English media where there is a concentration of non-English speaking residents. Any advertising, electronic or printed, will identify the project with the international symbol of handicapped accessibility and contain the Fair Housing Logo or Equal Opportunity Slogan. The project will be advertised as appropriate. Marketing material will be sent to the appropriate social services agencies listed on the AFHMP. Listed below is a sample local newspaper ad for your approval. Now Accepting Applications PROJECT NAME PROJECT ADDRESS 1, 2 & 3 bedroom units including units with special design features for individuals with a disability. Inquire as to the availability of subsidy. Call (000) 000-0000, Mon-Fri, 9am - 5pm or TDD #1-800- 735-2929. 10 2016-03-09 Item 3 47 of 105 35 e. To ensure effective communications with applicants,residents and members of the public that have sight or hearing impairments, each project will contact the California Relay Service at(800) 735-2929 when necessary. The Managing Agent will provide sign language interpreters for the hearing impaired if requested and if available within the community. Other reasonable accommodations will be available for visually impaired. Assistance will be given for completing the application when necessary. f. Reasonable accommodations must be requested in writing. Appropriate modifications, if not already installed, and within reason, will be made if at all possible if it does not impose a financial or administrative overburden. Structural changes would require consultation with the Owner and architect; therefore, each case would be reviewed based on its own merit and the economic hardship to the property. g. The Agent will use the attached waiting list format. h. The attached Unit Inspection Report will be used for all move-in's and move- out's. Prior to occupancy, each approved applicant will inspect his/her assigned unit with the manager who will be required to fill out and sign the Unit Inspection Report. This is a certification on the part of the applicant that the premises is in good and clean condition prior to their occupancy. Each tenant will receive a copy of the Unit Inspection Report and another copy will be kept in the tenant's file at the project office. i. Applicants are initially notified in writing as to their status detailing selection, rejection, or waiting list placement. Once selected, and at the time each applicant executes their lease, they will be given a thorough orientation with regard to the terms and conditions of the lease, rules and regulations, all addendums, and also will receive instructions on how to operate various appliances found in each unit during their walk-through inspection of the premises. j. It is the primary responsibility of the Site Manager and Regional Supervisor to select tenants using the policies and guidelines established by the Agent and the Owner and approved by the Agency as required. However, if there is a question regarding which applicant should be selected, they will request assistance from the Managing Agent. All applicants are notified in writing as to their status on the waiting list. k. All tenants are selected in accordance with this Management Plan and Agreement and the attached Resident Selection Procedure. 4. PROCEDURES FOR DETERNHNING TENANT ELIGIBILITY AND FOR CERTIFYING AND RECERTIFYING INCOMES. 11 2016-03-09 Item 3 48 of 105 36 a. All interested persons may obtain and submit an application for housing. All personnel in the project office are required to be knowledgeable and have on hand a copy of the agency's management handbook which encompasses the occupancy and continuing occupancy requirements of the Agency. Completed applications are processed in chronological order of the date the fully completed application was received based on eligibility within each income group. Additionally, applications will be logged by date and time when received, and placed on the waiting list or processed for a vacancy. The attached Resident Selection Procedure details the process.No application fees are anticipated. b. The Site Manager will be thoroughly trained by the Managing Agent and/or Agency in program requirements and State Law including but not limited to, the following: interviews, tenant selection, certification and recertification requirements and leases. Each month the project will be audited by the Managing Agent for compliance to make certain that all requirements are closely adhered to regarding tenant qualifications and certifications. In addition, Site Managers will attend Agency-sponsored training courses. 5. LEASING & OCCUPANCY POLICIES: Agent shall offer for rent and shall rent the units in the Project. Units shall be made available in accordance with a rent schedule approved in writing by Owner and the leasing guidelines and form of lease referred to herein below. The following provisions shall apply: a. Agent shall show dwelling units for rent in the Project to all prospective Tenants. b. Agent shall take and process applications for rentals, including prospective Tenant interviews and credit checks. If an application is rejected, the applicant shall be advised of the reason for rejection in accordance with applicable laws. C. Agent shall, subject to prior written approval by Owner of any deviation from Owner's approved rent schedule, Lease form, and leasing guidelines, execute all Leases in the Property's Name. d. Agent shall collect, deposit, and disburse security deposits, if required, in accordance with the terms of each Lease and applicable Law. The agent shall be responsible for safe keeping of these Tenants' security deposits which shall be held by Agent in an account at the Bank separate from all other accounts and funds (the "Security Deposit Account") and in accordance with applicable Law. e. Agent shall maintain a current list of acceptable prospective Tenants and undertake all arrangements necessary and incidental to the acceptance of rental applications and the execution of Leases. Agent shall exercise its best efforts 12 2016-03-09 Item 3 49 of 105 37 (including, but not limited to placement of advertising, interview of prospective Tenants, assistance in completion of rental applications and execution of Leases, processing of documents and credit, criminal, background and employment verifications, and explanation of the program and operations of Owner), to effect the leasing of dwelling units, and renewal of Leases in the Project. f. Agent shall perform such other acts and deeds requested by Owner as are reasonable, necessary, and proper in the discharge of Agent's rental duties under this Management Plan. g. Agent shall prorate the first month's rent collected from a Tenant should the Lease term commence on any other day than the first day of the month. h. Agent shall participate in the inspection of the dwelling unit (at least yearly) identified in the Lease together with the Tenant prior to move-in and upon move- out, and shall record in writing any previous damage to the unit and any damage occurring during the Tenant's occupancy. i. A description of occupancy standards for the project is described in the Resident Selection Procedure. Refer to attached selection criteria. j. Prospective tenants will complete an application. This is designed to give the Site Manager basic data about the tenant with which the Site Manager can determine whether there are factors of income, family size, or others which would effectively eliminate the applicant from further consideration. A credit report and criminal background check will be obtained for each applicant after it is determined that the tenant qualifies with regard to the Agency regulations. Income verification authorization forms will be signed by the prospective tenant. It will be explained at that time that their credit, criminal background will be thoroughly investigated. The Site Manager will request that the prospective tenant give information in advance of any unusual situation that the manager is likely to encounter in investigating the tenant. In this way prospective tenants have an opportunity to explain in advance, any unresolved credit problems, criminal records, unfavorable reports from former landlords, employment problems and other factors, which might otherwise disqualify them. As confirmation from the application is completed, the tenant's file is assembled. The Site Manager will evaluate each tenant in light of the information in his or her file as well as the program requirements and objectives established for the project by the Owner. The Site Manager and Agent will determine which tenants are to be accepted based on program requirements, Owner's objectives and criteria identified in the Resident Selection Procedures. Having determined to accept a prospective tenant, the Site Manager will then assign that tenant to an apartment matching as closely as possible the tenant's desired accommodations. At this time, the tenant certification will be completed 13 2016-03-09 Item 3 50 of 105 38 in its final form, approved by upper management and then executed by the tenant. The policies for the apartment project are then reviewed with the tenant in detail, including their rights and responsibilities. The tenant is then advised of the unit in which he/she has been placed, and the Site Manager goes with the tenant to the specific unit selected and they complete the unit inspection report. All the supporting documentation and data are placed in that particular tenant's file. k. The Site Manager is knowledgeable in all areas regarding Agency rules and regulations and personally trained in the certification process and in all management functions. In addition, Site Managers are aware of State Law and Agency regulations. 6. AFFORDABLE HOUSING REQUIREMENTS: Subject to the Budget, Agent acknowledges that Owner is required to use its best commercial efforts to lease all available residential units in the project (excluding one manager's unit), at the rent and income level designated by the Owner. Agent is familiar with affordable housing requirements as they relate to Agent's leasing and management duties hereunder and shall put its best efforts to comply with such requirements and to the extent Agent is unable to do so, Agent shall promptly notify Owner of such fact and the reasons therefore. Incident thereto, the following provisions shall apply: a. Agent shall require each prospective tenant to certify, on the Lease application or Lease, the amount of such tenant's annual household income, household size, and any other information required to enable Owner to maintain the affordability or otherwise reasonably requested by Owner. Manager shall require Tenants to certify in writing as to such matters on an annual basis, prior to such time as the information is required for reporting purposes. b. Owner shall from time to time furnish Agent with a written schedule of maximum rents for the apartments, which complies with the Requirements. Without Owner's express prior written consent, Agent shall not enter into any lease on behalf of Owner at a rental amount exceeding the applicable maximum. C. Agent shall maintain and preserve all written records of Tenant family income and size, and any other information necessary to comply with the Requirements or otherwise reasonably requested by Owner throughout the term of the Management Contract , and shall turn all such records over to Owner upon the termination or expiration of the Management Contract. 14 2016-03-09 Item 3 51 of 105 39 d. If requested by Owner, Agent shall prepare customary reports of low-income leasing and occupancy and other matters related to Manager's obligations. 7. RENT OCCUPANCY CHARGE AND OCCUPANCY SURCHARGE COLLECTION POLICIES AND PROCEDURES. a. Agent shall use its best commercial efforts to collect when due, directly or through an on-site manager, all rents, charges, and other amounts receivable on Owner's account in connection with the management and operation of the Project. Such receipts shall be held in the Operating Account, separate from all other accounts and funds. b. Rent payments are due on the first day of each month and are delinquent after the first of each month. Any tenant who has not paid their rent by the end of 5 days will be assessed a late charge. Three-day notices are delivered on the 6th day of each month to tenants who have not paid by the 5th day of each month. All rent payments are to be made to the Site Manager at the office during normal office hours, which are posted in the office. If this is impossible, the tenant may pay their rent by the U.S. Mail. Any tenant who has not paid their rent before the end of the tenth day of the month will receive a late charge assessment. Said late charge will be levied against the tenant, however, eviction proceedings will not be instituted against the tenant for nonpayment of late charges. The Site Manager is responsible for the collection of all rents and the issuance of all rent receipts. As stated above,rents will be paid at the office on the complex or by U.S. Mail. Cash payment is unacceptable for security reasons. All payments are made by check, cashier's check or money order. Rent payments, as they are received, are entered electronically into the accounting system through the onsite computer terminal. If necessary, rent payments are entered into the accounting system by way of a rent receipt which carbons through to the tenant's ledger card which in turn carbons through to the cash receipts journal. The rent receipt that the tenant receives is stamped with the name of the project or printed on the computerized receipt, the amount of money receipted for, and is signed by the authorized person receiving the funds. We encourage all tenants to keep their receipts for their own protection. All funds received are deposited in a separate account depending on the nature of the deposit. The project maintains an operating account as well as a separate security deposit account. C. Upon termination of the lease, the deposit is to be refunded to the tenant within 21 days, except as may be used by the Owner toward reimbursement of the cost of repairing any damage to the property (normal wear and tear excepted) caused by the tenant, his family or guests and any rent or other charges owed as per state law. The Owner shall provide the tenant with an itemized statement of any security deposit retention. 15 2016-03-09 Item 3 52 of 105 40 8. PROCEDURES FOR REQUESTING AND IMPLEMENTING A RENT OR OCCUPANCY CHARGE. a. Rent increases shall be anticipated and implemented as the needs of the Project dictate, in conjunction with the preparation of the Annual Operating Budget. The Project's senior management representative, in consultation with the Regional Supervisor and Site Manager, shall prepare the Annual Operating Budget for approval by the Owner. Rent increases shall be implemented in conformance with the requirements of any Agency regulations. Rent increase requests normally will be processed 60-90 days prior to the end of the borrower's fiscal year. It is anticipated that a rent increase would not be necessary more than once a year. Once it has been determined by an Owner that a rental increase is necessary, the Managing Agent will adhere to the Agency's instructions and conform to the requirements. The Managing Agent will develop the information necessary so that a request can be made to the Agency that gives: 1. Facts demonstrating the need and justification for a rent increase. 2. A new operating budget for borrower's fiscal year showing: a) current approved budget b) actual income and expenses to date c)proposed new budget with new rents Current tenant certifications must be on file. The Agent will provide utility allowance survey data each time they are revised. Tenants will be notified of a rent/utility allowance increase with the use of Agency's rent increase exhibit at the time the proposed rent increase is being forwarded to the Agency. This form will be posted in a conspicuous place and will, in addition, be delivered to all effected tenants. Tenants will be advised that during the waiting period in which the notice will be posted, they have the opportunity to inspect, copy, and make written comments and objections to all materials justifying the proposed rental increase. Additionally, in accordance with California State Law, tenants will be advised in writing in advance of any rental increase. b. The Managing Agent will be responsible for all processing of rental increases and/or changes. C. If expenses increase during the budget year, a rent increase may be requested at that time. Normal rent increases will be submitted 90 days prior to implementation. Prior to requesting a rent increase, the Managing Agent will carefully review the existing comparable rents and potential effect on existing residents and applicants. 16 2016-03-09 Item 3 53 of 105 41 9. PLANS FOR CARRYING OUT AN EFFECTIVE MAINTENANCE AND REPAIR PROGRAM. Agent shall cause the Project to be maintained in a decent, safe, and sanitary condition and in a rental and tenantable state of repair, all in accordance with local codes, and Agent shall maintain the Project at all times in a condition acceptable to Owner. The Owner will be notified if there is a budget deficit to fund for the ongoing building maintenance. Incident thereto, the following provisions shall apply: a. Special attention shall be given to preventive maintenance, and to the greatest extent feasible, the services of regular maintenance personnel shall be used. b. Agent shall contract with contractors and vendors for the maintenance and repair of major mechanical systems, and for the performance of extraordinary repairs beyond the capability of regular maintenance personnel. Owner must approve all contracted repair work not approved in the budget and in excess of$5,000 before executing contracts. C. Agent shall systematically and promptly receive and investigate all service requests from Tenants, take such action thereon as may be justified, and keep records of the same. Emergency requests shall be received and serviced on a 24- hour basis. Complaints of a serious nature shall be reported to Owner after investigation. Owner shall have the right to receive copies of all service requests and the reports of action taken thereon. d. Agent shall use its best commercial efforts to take such action as may be necessary to comply with any and all orders or requirement of federal, state, county, or municipal authorities having jurisdiction over the Project and orders of any board of fire underwriters, insurance companies, and other similar bodies. e. With Owner's permission, Agent is authorized to purchase all materials, equipment, tools, appliances, supplies, and services necessary for property maintenance or repair of the Project. All existing and new accounts used to purchase materials, supplies and services shall be in the name of the Property. £ Notwithstanding any of the foregoing provisions, the prior approval of Owner shall be required for expenditures exceeding $5,000 over the operating budget except for emergency repairs involving manifest danger to persons or property, or required to avoid imminent suspension of any necessary service to the Project. In the event of emergency repairs, Agent shall notify Owner of the fact promptly, and in no event later than 72 hours from the occurrence of the event. g. Preventative maintenance will be an important part of the maintenance program. All appliances, water heaters, AC/heaters, weatherstripping, windows, fans, and smoke detectors are inspected on a regular basis. Each unit is inspected at least once a year to ascertain the condition of all items. This is a part of the normal 17 2016-03-09 Item 3 54 of 105 42 preventative maintenance program. In addition, all appliances and mechanical equipment will be inspected prior to initial occupancy and prior to each tenant occupying the unit thereafter. h. Copies of the "as-built" plans will be provided by the Owner and maintained on site. In the case of any future work, it will be the responsibility of the contractor or subcontractor to provide the Owners and Agent with "as-built" updated plans and specifications upon the completion of their work. The manager will notify the Owner of all construction defects as soon as possible. i. General Maintenance Procedures: 1) All appliances and mechanical equipment are inspected on a regular basis. Each unit is inspected at least once a year to ascertain the condition of all of the appliances. This is a part of the normal preventive maintenance program. In addition, all appliances and mechanical equipment will be inspected prior to initial occupancy and prior to each new tenant occupying the unit thereafter. Should a warranty item or plumbing/electrical problem be involved, a local professional or the building contractor will be contacted. Any regularly scheduled major improvements, such as repaving, will be coordinated with the Managing Agent and Owner for approval prior to commencement of work. 2) City, State, and Federal regulations will be complied with as to the installation and maintenance of smoke detectors and fire extinguishers. Smoke detectors are checked at least twice a year during maintenance inspections. The Regional Supervisor also inspects smoke detectors of vacant units during their monthly inspection. Fire extinguishers are checked during monthly inspection visits to ensure service dates are current and have not lapsed. Outside lighting will be provided as required for proper security on the project. Outside lighting is checked on a regular basis to ensure proper light coverage and bulbs are operational. 3) When a tenant gives notice to vacate the unit and immediately after a move-out, the Site Manager is required to inspect each unit including the appliances of that unit to ascertain whether or not there has been any damage or any maintenance is required. Any necessary work is entered to a work order, which then is performed by the maintenance staff. All work must be completed prior to re-renting the unit. 18 2016-03-09 Item 3 55 of 105 43 4) Each unit is inspected at least once a year to determine the need for any maintenance work. If the unit is in need of repainting, it is then put on the paint schedule and completed by our staff or an outside vendor. Repainting of a unit will include doors and trim. Window coverings are inspected each time a unit is vacated. If the window coverings are worn, they are replaced at that time. For long-term tenants, the window coverings are inspected at the time of the semi-annual inspection. After five years, the unit would become eligible for new window coverings. The exterior of the project is monitored regularly to determine the need for repainting. The repainting of exterior trim, fences, and doors will begin as needed. 5) All major repairs that are beyond the capabilities of our own maintenance staff will be handled on a bid basis notwithstanding emergencies. We will solicit bids from at least three qualified subcontractors on all major repairs and replacements, if possible, to be assured the best possible quality and price. In case of emergency, the Site Manager will use good judgement on how to best handle the situation. In any emergency situation, the Site Manager will contact the Managing Agent as soon as possible with a full report. The grounds upkeep and maintenance will be carried out by a landscape subcontractor in most cases. When it is more cost effective, the on-site staff will perform the grounds upkeep and maintenance. In most instances, outside contract labor or contractors may be used for exterior painting, parking lot sweeping, major landscape renovation, exterminating, and plumbing. 6) The on-site staff will also be responsible for the cleanliness of the common areas of the complex. The first item on the agenda on the daily maintenance schedule will be policing the grounds and common areas. This will be accomplished by staff members. The on-site staff will also be responsible for maintaining indoor common areas such as the laundries and recreation room. j. The tenants will be instructed to make reports to the office for any maintenance or repairs needed. When a tenant comes to the office or telephones with a problem, a work order is filled out by the office staff and entered into the maintenance schedule. Upon completion of the work, the tenant is notified that the work is completed, given a copy of the completed work order and a copy is entered into the permanent maintenance log. An additional copy of the completed work order is also placed in the tenant's file. Except when required parts are not readily 19 2016-03-09 Item 3 56 of 105 44 available, work orders should be completed within 72 hours and emergencies within 24 hours. k. All equipment and supplies are purchased only after shopping for the best price. A minimum of three bids will be required, if possible, for any major equipment purchase. Neither the Owner nor the Agent have any identity of interest with any supplier of products or services on the project. Our projects do not have a purchase order system. Goods and services are ordered by the Site Manager and/or the Regional Supervisor. Invoices are verified by the Site Manager to ensure goods were received, and services were accomplished and were acceptable. Site Manager prepares a payment request and forwards to the corporate office along with the invoice for Regional Supervisor approval and payment. 1. Reserve for replacement requests are made with appropriate supporting documentation, bids and justifications, for approval by Managing Agent and Owner where necessary. 10. PLANS AND PROCEDURES FOR PROVIDING SUPPLEMENTAL SERVICES a. Laundry and vending machines are provided from vendors. All vending services and equipment are owned by the vendor. Any cash collected is paid in the form of checks to the appropriate projects and are deposited into the general operating account of the project. b. All equipment will be owned by vendor. C. Vendor forwards a monthly check to be deposited into the operating account of the project. No cash is accepted. d. Vendor will be responsible for all maintenance, servicing, and stocking any machines. e. Laundry contracts are normally initiated for a five-year term and renewed every five (5) years at which time the terms and conditions are renegotiated. A new contract is written and signed by both parties. This is a Managing Agent standard contract. Vending machine contracts are negotiated in the same fashion as laundry contracts. 11. PLANS FOR ACCOUNTING, RECORD KEEPING AND MEETING REPORTING REQUIREMENTS. a. All project records will be developed by the Agent and maintained in accordance with Agency regulations and policies governing fiscal operations, accounting and financial reports for multifamily housing projects, and will comply with 20 2016-03-09 Item 3 57 of 105 45 generally-accepted accounting procedures. Required reports will be prepared and submitted from the Managing Agent to the Owner using a modified cash reporting system. The Agent will be responsible for the preparation and submission of the monthly financial statements. The Owner will contract for the annual audit. The Agent will cooperate with and make all records available to the CPA for the preparation of the audit. The accounting records will be set up and maintained by the Agent in the Agent's office. The records will be kept on a modified cash basis and will comply with generally-accepted accounting practices. b. Project funds will not be co-mingled. C. The project chart of accounts and bank accounts are either directly or indirectly (through our mapping strategy) compatible with multiple family housing project budgets. d. The accounting department will be responsible for the preparation and submission of the quarterly and annual reports to the lender, if necessary. e. An independent CPA not associated with the project will provide the annual audit or review. f. Individual folders will be kept on the project site for all tenants and will contain completed applications, verification of income and certification, lease agreement, credit and criminal reports, security deposit data, rent receipts, work orders, and correspondence. All folders for tenants who have vacated an apartment will be kept a minimum of three (3) years and/or a maximum of seven(7)years. g. Tenant records and copies of initial tenant certifications will be retained at the Site Manager's office and will be available during normal business hours for review. Accounting records will be maintained at the Agent's office and will be available during normal working hours for review. All records are maintained for a minimum of seven years. 1. PROPERTY ACCOUNTS Disbursements from the Operating Account shall be governed by the following: a. From the funds collected and held by Agent in the Operating Account and subject to Owner's approved operating budget, Agent shall make the following disbursements promptly when payable, in the following order of priority: (i) salaries and other compensation due and payable to the employees together with related payroll taxes; (ii) real estate taxes and assessments, and fire and other hazard insurance premiums, (including any required monthly escrow payments therefore), utilities, interest on the 21 2016-03-09 Item 3 58 of 105 46 mortgages, amortization of the principal of the mortgages, fees, and establishment and maintenance of all required reserve funds; and (iii) other payments due and payable by Owner as operating expenses incurred pursuant to Owner's approved operating budget and in accordance with the Management Contract, including Agent's compensation. b. In the event that the balance in the Operating Account is at any time insufficient to pay disbursements due and payable, Agent shall promptly inform Owner of the fact and Owner may then remit to Agent sufficient funds to cover the deficiency. In no event shall Agent be required to use its own funds to pay such disbursements. C. Owner shall maintain and fund separate accounts for operating reserves and replacement reserves. Agent shall maintain a separate account for security deposits. All accounts shall be maintained separately from all other funds unless instructed differently by Owner. 13. OPERATING BUDGETS The Budget shall be mutually agreed to by Owner and Agent. Agent shall control expenses in accordance with the agreed upon Budget. Both the Agent and the Owner will promptly notify the other if either accounts for, is informed of, or anticipates an increase for any particular item included on the operating budget or any project expense that will impact the total projected operating expense for the Project. The Budget shall include a schedule of recommended rents to be charged for each dwelling unit, including recommended rent increases with respect to Lease renewals and new Leases. In preparing each proposed Budget, Agent and Owner shall each use their best efforts to take account of anticipated increases in real estate taxes, utility charges, and other operating costs including all anticipated office and administrative expenses of the Agent that may be considered Project expenses. If there is any monthly deficient to pay expenses from income received, Agent shall bill Owner for such deficiency and Owner shall use its best efforts to pay Agent such deficient amount within fourteen (14) days, but no later than thirty (30) days. 14. RECORDS AND REPORTS In addition to any requirements or other provisions of the Management Contract, in accordance with amounts provided in the Budget, Agent shall have the following responsibilities with respect to records and reports: a. Agent shall establish and maintain a system of records, books, and accounts, including computerized systems, in a manner satisfactory to Owner. All records, books, and accounts shall be subject to examination at reasonable hours by any authorized representative of Owner. 22 2016-03-09 Item 3 59 of 105 47 b. Agent shall prepare a monthly report containing and including at least the following for the month just completed: (i) a statement of income and expenses and accounts and an itemized list of all delinquent rents; (ii) a rent roll/cash receipts form; (iii) a disbursement summary; (iv) with reconciliation of the Operating and Security Deposit Accounts; (v)balance sheet; Agent shall submit each such report to Owner on or before the twentieth (20th) day of each month. C. Agent shall prepare, execute, and file all forms, reports, and returns required by law in connection with the employment of personnel, unemployment insurance, worker's compensation insurance, disability benefits, Social Security, and other similar insurance. d. Agent shall establish tenant files containing copies of leases, certification forms, notices, and other documentation required by any lender or the affordability program, if and to the extent applicable. e. Agent shall file on behalf of Owner, the customary property management compliance reports required by the San Diego Housing Commission. Agent shall cooperate fully with all necessary activities of the auditor and paid tax preparer. Agent shall also file compliance reports required by the first mortgage lender and the limited partner. f Agent shall promptly furnish such additional information (including monthly occupancy reports) as may be requested from time to time by Owner with respect to the renting and financial, physical, or operational condition of the Project. If Agent is requested to provide any additional reporting other than those outlined specifically in paragraph 14, Sections (b), additional charges will apply. 15. UTILITIES, SERVICES AND ENERGY CONSERVATION MEASURES. a. In accordance with the Budget, Agent shall make arrangements and continue to pay for water, electricity, gas, cable, sewage, and trash disposal, vermin extermination, decorating, laundry facilities, telephone service and other services in connection with the Project. b. Each tenant will be in direct control over their consumption of gas and electricity. The manager will carry out orientation programs to educate the tenants in regard to the conservation procedures. Each tenant will be advised how to best maintain their equipment to the best of their ability and to call the office for assistance for those who are unable to maintain the equipment. Items such as filter changes, thermostat settings, and water temperature control will be an integral part of the program. The manager will develop orientation programs that will include energy conservation measures that consider not only the items listed here, but also optimum times of cooking and not cooking, as well as doing laundry and other 23 2016-03-09 Item 3 60 of 105 48 household chores. This information will be included at the tenant move-in orientation. C. Management will be involved in conservation at all levels. Particular attention will be paid to conservation of energy in all common areas of the proj ect. d. Management will be involved in all energy conservation programs on the complex. All-night lighting systems will be on photoelectric cells to go on at dark and off at daybreak; and all watering systems will be set to not over water to the extent that water consumption is escalated and water runs down the street. Upon a tenant moving out, prior to re-renting the unit, all hot water tanks will be reset to a maximum of 120 degrees. The management will provide filters as necessary to keep the HVAC clean and efficient as well as make service calls on all HVAC that are not operating properly. At the time of the maintenance visit, the maintenance staff is instructed to educate the tenants with regard to conservation of utilities. Additionally, with each visit to a unit the maintenance staff is instructed to inspect the hot water tank for malfunctions. The manager will make available free pamphlets distributed through the utility companies with household hints on conservation when available. 16. PLANS FOR TENANT PARTICIPATION IN HOUSING AND TENANT'S RELATIONSHIP WITH MANAGEMENT. a. Every effort will be made to encourage residents to initiate, conduct and participate in neighborhood watch programs, resident councils and/or resident social activities. Managers are likewise, encouraged and prompted to facilitate such activities. b. The Tenant Grievance and Appeals Procedure is posted in the Site Manager's office. The tenant/member will submit all grievances to the manager who will be responsible for initial review of the complaint, discussion with their Regional Supervisor and coordination and delivery of the response. 17. PLANS FOR CARRYING OUT MANAGEMENT TRAINING PROGRAMS. a. We maintain our own training program. Regional Supervisors will thoroughly train new hires in the areas of, Manager's Handbook and company policies and procedures. All new managers are required to attend and pass Agent-sponsored training courses. b. When a new manager is hired at any complex, the manager trainee is put through our training program which includes all aspects of the particular program under which he or she will be working as well as our 24 2016-03-09 Item 3 61 of 105 49 management and safety programs. In addition, we conduct periodic safety programs. Agency approved training programs are utilized for training managers in regulations, certification, and continuing education programs. 18. TERMINATION OF LEASE OR OCCUPANCY AGREEMENTS AND EVICTIONS. a. Agent shall use its best commercial efforts to secure full compliance by each Tenant with the terms of such Tenant's Lease. Voluntary compliance shall be emphasized, and Agent shall make referrals to community agencies and provide a list of local help agencies in cases of financial hardship or other circumstances deemed appropriate by Agent, all to the end that involuntary termination of tenancies shall be avoided to the maximum extent, consistent, with sound management of the Project. Agent may, if required by Owner, lawfully terminate any tenancy when sufficient cause for such termination occurs under the terms of the Tenant's Lease, including, but not limited to, non payment of rent. For this purpose, Agent is authorized to consult with legal counsel and bring actions for eviction and execute notices to vacate and judicial pleadings incident to such actions: provided, however, that Agent shall keep Owner informed of such actions and shall follow such instructions as Owner may prescribe for fees and other necessary costs incurred in connection with such actions, as determined by Owner, shall be paid out of the Operating Account. Agent shall properly assess and collect from each Tenant or the security deposit the cost of repairing any damages to the dwelling unit arising during the Tenant's occupancy. b. The lease agreement clearly outlines all provisions and procedures for the Managing Agent to evict a tenant. Within the Managing Agent's organization the Regional Supervisors are responsible for determining and overseeing evictions. C. Agent may take action to terminate or evict any tenants where in Agent's judgment, sufficient cause for such termination or eviction exists under the terms of the Residential Lease. Agent is authorized to retain legal counsel to bring action necessary to carry out the decision to terminate or evict with prior authorization of Owner's legal department. Agent shall keep Owner informed of the progress of such actions if requested. d. The Regional Supervisor and Site Manager are knowledgeable in all legal requirements regarding notification of State laws in evictions. Additionally, all personnel are trained in State and Local laws regarding tenant evictions and lease terminations. Included in this training are requirements regarding notification that must be given to a tenant when termination of the lease or eviction is proposed. When violations occur, violation notices are served prior to an actual eviction notice. 25 2016-03-09 Item 3 62 of 105 50 19. INSURANCE a. The Managing Agent is knowledgeable and is responsible for furnishing fidelity bond coverage as a Project expense. All employees will be covered by the Agent's fidelity bond in the amount of $500,000 per instance. b. Agent shall investigate and immediately furnish the Owner with full reports of all accidents occurring on or about the premises of the Project or in connection with the operation of the Project, or any claims or potential claims for damage arising out of such accidents on forms provided by Owner. Agent shall cooperate with the Owner and insurers in the investigations and settlement thereof. The liability policy will name Agent as an additional insured. Owner will provide Agent with the current Project's insurance certifications listing Agent as additional insured on an on-going basis. 1. TERMS OF AGREEMENT A copy of the proposed Management Contract is attached as a subpart of the Management Plan. 21. MANAGEMENT COMPENSATION The Management Agreement sets forth the responsibilities as well as the compensation and how the compensation is to be paid to the Managing Agent. All management fees will be paid monthly. 22. ON-SITE MANAGEMENT. a. The Site Manager will perform on-site management duties. b. The Site Manager and staff job descriptions begin in Section 2. C. The Site Manager or a maintenance person must live on site in a rent-free apartment. d. Office hours will be established to meet the needs of the tenants within the limits set by the approved budget. Current hours will be posted on the office door. 26 2016-03-09 Item 3 63 of 105 51 23. VALIDITY OF THE MANAGEMENT PLAN I hereby certify this plan and agreement addresses all aspects of project management. Signature Managing Agent Title Date Signature Owner Title Date 27 2016-03-09 Item 3 64 of 105 52 PROJECT NAME Management Plan and Agreement Attachments ATTACHMENTS 1. Resident Selection Procedure 2. Waiting List Format & Instructions 3. Waiting List Contact Letter 4. Unit Inspection Report 5. Moisture Inspection Report 6. Smoke Detector Test Log 28 2016-03-09 Item 3 65 of 105 53 Exhibit D Property Management Professionals Hyder & Company N e`a Special points of interest: as a °� > Mission Statement i °e > Introduction letter from our President i Li > Management Objectives > Who We Are > Operations Human Resources d On-Site Management Policy Development&Compliance Budget&Finance as Miscellaneous as as as as ae as Mission Statement �a E "Hyder&Company is dedicated to realizing the goals of its customers. ca We feel the health of our managed communities depends on the efficiency of a diverse and talented staff which we are continuously cultivating. By partnering with owners and developers, Hyder's comprehensive programming and services remain focused on providing safe, clean, and active communities that residents are proud to call Some of our clients home ." Limited Partnerships Joint Ventures Private Investors Hyder Property Management Professionals 1649 Capalina Road,Suite 500 Housing Authorities San Marcos, CA 92069 Non-Profit Corporations Phone: (760)591.9737 Financial Institutions Fax:(760)591.9784 www.hyderco.com State&Federal Government 2016-03-09 Item 3 66 of 105 54 Dear Housing Owner: When Hyder Property Management Professionals was formed, the basic premise was that this would be a Company oriented and responsive to the needs of our customers in the affordable housing field. Our growth would indicate that this was indeed a sound premise from which to begin. Hyder Property Management Professionals has one primary goal,which is to deliver the highest quality product in the management field. It is impossible to deliver a quality product without first knowing the needs of our customers. For this reason,we are immediately accessible to our residents, owners, and employees.These open lines of communication are the foundation of our success. I believe that our commitment to technology provides us an additional advantage because it is an important tool to serve the management function. Our use of technology ties separate bits of information together,which assists in effective decision making. However, there is no substitute for personal knowledge and services for our residents.This is our true competitive edge. We continually strive to upgrade our program knowledge through company-sponsored, as well as agency-sponsored,education programs for employees and residents. Our experience and knowledge in maintenance programming is second to none.We have a staff of dedicated specialists that have years of experience in apartment management and maintenance.There is virtually no problem that cannot be solved by our professionals. We feel that our management program is superior. Our employees have been trained with emphasis on accessibility,reliability, and responsibility. Our management program is based on these sound and proven principals of affordable housing management.We invite you to unite with our firm to attain the goals you have set for your apartment community. Very truly yours, Hyder Property Management Professionals Stephen J.Margetic President 2016-03-09 Item 3 67 of 105 55 Management Objectives The primary goal of Hyder Property Management Professionals is to provide the finest in quality property management services.Therefore,we have set forth the following objectives for our management program that we provide to our owners. 1. Hyder Property Management Professionals has the responsibility to preserve and protect the investment of the owner. 2. Hyder Property Management Professionals will manage each community as a$nancially-stable enterprise and maintain it to provide decent, safe, and i sanitary housing. ' 3. Hyder Property Management Professionals will make every effort to ensure that additional services are available and directed at improving the lives of our residents. ' 4. The property will be managed in accordance with the regulatory ' requirements of the supervising agency. i 5. The apartment community will be a long-term affordable housing asset for the community, as well as a pleasant and secure living environment for its residents and the neighborhood. 6. The apartment community will be a catalyst for positive relationships among the residents, management, and the surrounding neighborhood. ' 7. Hyder Property Management Professionals will maintain a continuous line of open communication with our owners, residents, staff members, neighbors,community officials, and other interested parties. As part of the management agreement,Hyder Property Management Professionals will assist the owner in the development of a solid management plan.The management plan will set forth the method by which the management agreement will be implemented to assure that the apartment communities under contract with our Company will provide the highest standard of living for the residents. i y 2016-03-09 Item 3 68 of 105 56 e i 3 In addition to providing basic and enhanced property management services,Ryder Property Management Professionals... e 3 Promote Stability: We focus on our residents.Living in quality,affordable housing provides the required peace of mind that comes with a safe&secure place to live,where children and adults can develop families and make connections that last forever.Stable neighborhoods enhance health and residents self-esteem,both of which are critical to helping our residents reach their goals and life-long dreams at school and at the workplace. Provide Opportunities:At many of our community centers,Hyder residents r pursue educational and professional goals that lead to increased opportunity,a better job,a better school,and economic independence Construct Stepping Stones to Success: Residents from our professionally managed portfolio have both the knowledge that they are setting and achieving goals,as well as the dignity that comes with determining their own path for the future.Our site managers and staff also set goals and objectives for their own communities that promotes this self-determination. i Measuring our Success "...I really appreciate so much everything that you have done for me and my family.I know you say that it was just your job,but you really did treat us right.As you know life was difficult for us for awhile,but we were able to save money while living at the apartments.As you know,we now own our home.I hope that others are also able to benefit from this program.Tell your maintenance guy,Juan,to keep up the good work too.He's awesome..." Maria,Former Resident "...I love it here.The manager is always nice and helpful,especially when I don't understand something about my income certification process.And my i. kids think she's tough,but fair..." Current Resident "Her initiative in responding to this issue is appreciated.I think it will make P ' our properties safer and encourage a We're on the Web good relationship between us and the zi- ' www.hyderco.com City..." Bill Rice Property Developer _ Affordable housing improves the quality of people's lives and Hyder&Company is committed to creating and strengthening communities through the provision of quality,affordable and service-enriched housing. 2016-03-09 Item 3 69 of 105 57 Operations i Property Management of affordable housing has become a complex business,requiring strong systems, significant planning and on-going staff training.Hyder Property Management Professionals assist owners in developing the policies and procedures required for meeting their goals. i New and existing owners continue to be attracted to Hyder Property Management Professionals for our unique ability to be mindful of their individual priorities,as well as the range and quality of their management options. Hyder Property Management Professionals clients generally come from repeat customers,word-of-mouth i recommendations,or from an agency of the government due to its reputation of providing quality basic and enhanced property management services. i i i The basic and enhanced property management activities include: Human Resources/Personnel While many operations around the country lament the scarcity of high-quality staff throughout the affordable housing spectrum,the Human Resources Department takes charge of attracting and retaining high-quality staff by focusing on the following key drivers: i 1. Pre-screening and Testing All applicants are screened by our Human Resources Department to assure the best qualified individuals are placed in vacant positions.A drug-free environment is mandatory at all sites. i 2. Employee Benefits Senior management works directly with the Human Resource Department to ensure that the best possible employee benefits are made available to every employee. 3. Staff Development We develop partnerships,such as Work Place Learning Centers to develop and train staff in areas of Leadership Development,Customer Service and Communication Skills.Fair Housing training is a regular and mandatory component of our continuing education.Computer and on-going i company policy training is also a regular part of our staff development.Our managers have and continue to participate in Local Initiatives Support Corporation(LISC)Certified Resident Management Training and Advanced Project Management Classes.An annual three-day Company Conference is held to develop the skills and training needed, as well as to encourage a TEAM approach in all areas of administration and maintenance. Tenant Selection-Hyder Property Management Professionals provide all the personnel to do the necessary preliminary application work,tenant screening, and tenant selection for the community.This process includes all necessary Always a hand to help each other... qualifying information for the specific program,as well as background checks, credit checks,income verification,and any other regulatory requirements established by the agency under which the development is funded.After the qualifying process is completed,Hyder Property Management Professionals give each family an orientation. Hyder Property Management Professionals will perform all necessary tenant income recertification at the appropriate time,to be in compliance with the governing agency. Rule Enforcement-All residents have a lease for their premises,with a clear understanding of their obligations under the terms of that lease.Each resident will have other handbooks or information as is necessary to live in the apartment unit. 2016-03-09 Item 3 70 of 105 58 On-Site Management On-Site Resident Managers at each community in excess of 15 units. i Hyder Property Management Professionals is committed to providing excellent property management services by providing culturally competent on-site staff and team leaders that our owners have come to trust.This is a way of i life rather than a requirement imposed by a governmental and/or private entity. Maintenance Professionals trained with health and safety as a priority using the premise that when employers and i workers jointly and voluntarily create and maintain an effective health and safety program in their own workplaces, the human and financial cost of workplace injuries and illnesses will be minimized.Hyder Property Management Professionals believe that supporting health and safety programs lead to a larger reduction in injuries than OSHA regulatory compliance alone.For this reason,we have a Director of Safety and Maintenance at the corporate office to monitor the overall health and safety issues of our portfolio. i Hyder Property Management Professionals will provide a written maintenance program that will be adhered to on a regular basis by the staff,and other contract vendors.This will include corrective maintenance as well as preventive maintenance programs on an on-going basis. Hyder Property Management Professionals performs a semi-annual inspection of each apartment unit so as to determine the needs of the maintenance program,as well as determine the housekeeping efficiency of the individual tenants.The results of these inspections are written up in the form of work orders,or instructions to the i i tenant on a case-by-case basis. Regional Managers clarify roles and responsibilities of the on-site staff,assure that individual goals and objectives are met,and review and adjust objectives,using key indicators to measure progress.Each apartment community is assigned a supervisor who is responsible for the overall operation of the property.Each property is inspected regularly for appearance,maintenance,tenant services,and office procedures.We provide immediate response to the results of our inspections. Policy Development & Compliance It is through the careful development of policies and procedures that site and regional staff is able to develop and maintain healthy occupancy and reporting figures and statistics.The Director of Compliance works with the regional managers and site managers on all compliance issues.Activities include preparation of those reports required by our owners,syndicator,and various funding institutions. Our Manager's Handbook contains instructions,forms,and letters that site managers and regional managers reference on a regular basis. This Handbook is updated as regulations change. Hyder Property Management Professionals exclusively manages tax credit and other assisted housing units on a fee basis.We have only limited ownership interest in any properties that we manage. We do not compete with our owners. 2016-03-09 Item 3 71 of 105 59 Budget & Finance i Hyder Property Management Professionals: • Maintain a staff of accounting personnel to maintain the books and records of each apartment community. • Pay all bills and generate financial reports. • Collect all rents and disburse all funds for the property. • Deposit all funds in a bank insured by the FDIC. ' • Establish a reserve-for-replacement account to make periodic deposits for the future replacement of major ' structural items in the complex, such as roofs, carpeting, parking lots, mechanical systems, and other replacement items that will be necessary over the life of the property. • Prepare an annual budget for the Owners approval each year. Our company also,as is needed,requests and ' implements rental increases on behalf of the Owner. • Submit to the Owners monthly reports as to income and expenses, together with any other reports provided for in the management agreement. Miscellaneous i Risk Management We will obtain bids from various insurance agencies for the permanent insurance of the property.Our insurance i brokers will also make recommendations that we will share with the Owner as to other insurance needs for the protection of the Owner.Hyder Property Management Professionals maintains an employee dishonesty policy that provides up to$500,000.00 of coverage. i i Grant Writing We have a grant writing program that actively identifies the needs of the residents in our communities and seeks grant funds to help provide these programs and services. Security We will make recommendations to the Owner on a case-by-case basis of any additional security needs of the property. Resident Relations We will protect and preserve the rights to privacy and other rights of our residents.We will maintain the records in a confidential manner during the term of our contract.All site and supervisory management and maintenance personnel will be required to abide by the policies and standards for appropriate behavior with residents.Where required by a regulatory agency,we will establish an appeals procedure to be used by residents in the event that differences cannot be resolved between the manager and tenants. Meetings We anticipate that a representative of our company will attend monthly meetings with the Owners if requested by the Owners.We will make every effort to assist in implementing Owner policies and programs for the benefit of all residents. We will maintain a continuous program of communication and accessibility with our residents,staff members,and Owners,for the benefit of the operation of the community. Properties in our portfolio have ranged in size from 12 units to 558 units and from 20,000 sq.ft. of land to over 40 acres.The sites have had as few as two buildings to over 100 buildings. 2016-03-09 Item 3 72 of 105 60 Attachment 2 Resolution No. EHA 2016-02 2016-03-09 Item 3 73 of 105 2016-03-09 Item 3 74 of 105 RESOLUTION NO. EHA 2016-02 A RESOLUTION OF THE CITY OF ENCINITAS HOUSING AUTHORITY 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 WHEREAS, there is a shortage of decent, safe, and sanitary housing which is affordable to lower-income households in the City of Encinitas and a consequent need to encourage the creation and availability of affordable rentals units for lower-income households, and; WHEREAS, the Encinitas Housing Authority approved the purchase of sixteen condominium units at Pacific Pines, located on South El Camino Real in 2003, and; WHEREAS, the Encinitas Housing Authority seeks the services of a professional property management firm to manage the sixteen condominium units and provide a quality living environment for the tenants, and; WHEREAS, the operating budget for Pacific Pines was approved with the City's FY2014/15 — FY2018/19 Operating and Capital Budgets on May 28, 2014, and; NOW, THEREFORE, BE IT RESOLVED by the Encinitas Housing Authority Board of Commissioners as follows: 1. That the foregoing recitations are true and correct. 2. The Encinitas Housing Authority hereby authorizes the Executive Director, or designee, to negotiate and execute a contract with Hyder & Company for property management services and maintenance of sixteen Encinitas Housing Authority owned units at Pacific Pines. 3. The contract will be for a one-year period with an option to extend for an additional two-year period. 4. 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. PASSED AND ADOPTED this 9t" day of March 2016, by the following vote, to wit: AYES: NOES: ABSTAI N: ABSENT: Kristin Gaspar, Chairperson ATTEST: Icc��Secretary Item 3 75 of 105 Attachment 3 Property Management Request for Proposals 2016-03-09 Item 3 76 of 105 2016-03-09 Item 3 77 of 105 REQUEST FOR PROPOSALS PROPERTY MANAGEMENT OF SIXTEEN CONDOMINIUM UNITS OWNED BY THE ENCINITAS HOUSING AUTHORITY Submit Completed Proposals to: City of Encinitas Planning & Building Department 505 S. Vulcan Avenue Encinitas, CA 92024 Attn: Nicole Piano-Jones, Management Analyst DUE BEFORE FRIDAY, JANUARY 22, 2016 5:OOPM EQUAL HOUSING OPPORTUNITY 2016-03-09 Item 3 78 of 105 CITY OF ENCINITAS NOTICE INVITING SEALED PROPOSALS PROPOSAL: PROPERTY MANAGEMENT OF SIXTEEN CONDOMINIUM UNITS OWNED BY THE ENCINITAS HOUSING AUTHORITY PROPOSALS MUST BE RECEIVED BEFORE: 5:OOPM, January 22, 2016 PLACE OF RECEIPT OF PROPOSALS: City of Encinitas Planning & Building Department 505 S. Vulcan Avenue Encinitas, CA 92024 NOTICE IS HEREBY GIVEN that the City of Encinitas, California will receive sealed proposals before the time and date set forth above, for the above project. For the RFP, click on "Bids and RFP" on the City's main website at: http://encinitasca.gov/. The City reserves the right to reject any and all proposals, should it deem this necessary for the public good, and also the proposal of any bidder who has been delinquent or unfaithful in any former contract with the City of Encinitas. Ctyy of�ncci itas09 Ite2m 3 2016 Pacific Pines Property Manageern of M I. Overview: The coastal City of Encinitas is located in northern San Diego County, approximately 25 miles north of the City of San Diego. The City area is approximately 19 square miles, bounded by the City of Carlsbad to the north; the City of Solana Beach along the south; the unincorporated area of the County of San Diego to the east; and the Pacific Ocean to the west. The City was incorporated in 1986 and has a population of approximately 61,204 and an estimated 25,720 housing units. The City of Encinitas Housing Authority (EHA) was created in 1995. The Encinitas Housing Authority Board is the decision making body and is comprised of the five members of the City Council and two tenant commissioners. The Encinitas Housing Authority Board meets on an as-needed basis for management and financial matters for the Encinitas Housing Authority as well as the Section 8 Rental Assistance Program. Encinitas Housing Authority staff work within the Advanced Planning division of the Planning and Building Department. The 186 units at Pacific Pines condominiums were built in 1984 with bond financing from the County of San Diego. In exchange for the bond financing, 20 percent of the units were restricted to affordable rents for lower-income households (households with incomes at or less than 80 percent of the area median income). The bonds were retired through the sale of the property in 2002, and the new owner marketed the units as condominiums, as opposed to keeping them as rental units. To preserve some of the affordable units, the Encinitas Housing Authority (EHA) utilized federal funds to purchase sixteen units and retain as affordable rental units for low-income households. Whenever possible, the EHA refers Section 8 Housing Choice Voucher tenants to these units. Additionally, four of the sixteen units are restricted by the federal HOME Investment Partnership program. Property management will include leasing of units at their different income and rent levels, and required compliance with local, State, and Federal regulations. II. Scope of Services: The EHA is seeking the services of a qualified firm with extensive experience in exceptional property management and customer service skills. The selected firm will provide expertise in communication and organization skills, accounting, budgeting, owner/tenant relations, quality assurance, management, maintenance, and reporting. Experience with local, State, and Federal housing programs is not required, however, it is highly desirable. The Pacific Pines property management team shall, at a minimum, perform the following duties: • Assist the EHA to establish, and enforce local, State, and Federal policies on occupancy and regulations • Represent the EHA on homeowners association related items and issues • Property Management, which includes, but not limited to: • Rent collection; • Delivery and follow-up on notices; • Pre-tenant screening of qualified low-income households; • Annual tenant income recertification; • Court appearances for evictions; • Maintain wait list of interested applicants; Ityy of� onas09 Item 3 2016 Pacific Pines Property Maanaag m 199 • Move-in/move-out walkthroughs; and, • Account processing. • Maintenance supervision, which includes: • Soliciting bids from experienced, licensed, and insured vendors; • Assisting in defining the job and defining specifications; • Scheduling, supervision, and inspection; • Work order processing and tracking; • Preparing maintenance and operational forecasts; and, • Monthly status reports. • Financial management, which includes: • Experience in property management bookkeeping and providing on time, accurate records of every financial transaction; • Providing detailed narrative reports to highlight issues of importance; noting any extraordinary income or expenditure; and providing an easy to read overview of the current month's activities, and; • Providing clear financial statements; budget preparation; and cash flow analysis. The EHA shall: • Refer potential tenants for vacant units whenever possible. • Assist property management firm with program-related requirements. • Re-certify any existing Section 8 tenants for continued eligibility. III. Additional Requirements: Prior to awarding any work, the selected Consultant will be required to execute a Contract to provide services with the EHA. The Consultant will be required to comply with all terms and conditions set forth in the City of Encinitas Standard Professional Services Contract (Exhibit "B"). The consultant is required to obtain and maintain a policy of professional liability (errors and omissions), automobile liability, public liability, general liability, and property damage insurance in an insurable amount of not less than one million dollars ($1,000,000.00) for each occurrence or aggregate. It is recommended that the consultant review this Contract prior to submittal. As part of the proposal, the Consultant shall respond Attachment "A" (Manner of Performing Services), Attachment "B" (Payment for Services), and Attachment "C" (Listing of Sub-consultants) which are found in Exhibit "B." The Consultant/Firm's proposal and all subsequent modifications to either document will be included as appendices to the Contract (Exhibit "B"). Any exceptions to the terms and conditions, as specified in the attached Contract, must be specified in the proposal. If no exceptions are made, then the Consultant agrees to be bound by, and thereby represents its ability to satisfy all terms of the Contract, if selected. The City Attorney or Risk Manager may make minor modifications to the standard Contract to fit the particulars of this project. As part of the proposal, the consultant shall provide a Statement of Economic Interests to be completed, signed and dated. Additionally, a Statement of Experience and Financial Condition with supporting documents on the City's form must be signed and dated by an individual clearly Ctyy oton3as09 Item 3 2016 Pacific Pines Property Maanag men199 authorized to bind the Consultant (Exhibit "D"). This includes a statement that the Consultant has sufficient staff resources and capacity to perform the services contained in the RFP. The proposal and all subsequent modifications to either document will be included as appendices to the Contract. Any exceptions to the terms and conditions, as specified in the attached Contract must be specified in the proposal. If no exceptions are made, then the proposer agrees to be bound by, and thereby represents its ability to satisfy all terms of the Contract, if selected. The City Attorney or Risk Manager may make minor modifications to the Contract to fit the particulars of the Program administrator services. The length of the Contract can be negotiated between both parties. Available options are a one- year term with the opportunity for a two-year extension based on performance and need, or a two- year Contract with an opportunity for a one-year extension based on the performance and need. The extensions are determined at the sole discretion of the City. IV.Terms and Conditions: The proposal must identify in writing all copyrighted material, trade secrets, or other proprietary information that it claims is exempt from disclosure under the Public Records Act (California Government Code Sections 6250 et seq.). By submitting a proposal to the City, the proposer agrees that the City is authorized to conduct investigations into the proposer's background. The City reserves the right to request additional information and/or clarifications from any or all respondents to this RFP. The City reserves the right to modify the RFP, prior to the date the submittals are due, to ensure that the proposal fully addresses the City's need. The City shall promptly notify all prospective proposers on file. In the event that a proposer agrees to modify the proposal, a change in cost of the services as set in the proposal may be made. Otherwise, the cost stated in the original proposal shall remain effective. Prior to opening of proposals, a proposer may submit, in writing a request for interpretation or correction of the RFP documents. Any interpretation or correction of the RFP documents rendered by the City shall be made immediately available to all other persons who obtained RFP documents from the City. If, prior to the opening of proposals, a proposer discovers an error in its proposal, a replacement proposal may be submitted prior to the time and date set as the deadline for submitting proposals. The replacement proposal shall clearly indicate that it supersedes the prior proposal. Once the proposals have been opened, an erroneous proposal may not be reformed or modified by the proposer; but may request that the City release the proposer so long as the integrity of the proposal process is not jeopardized, the error was a result of excusable neglect, and the proposer is not advantaged. If the City releases the proposer, the proposal will be deemed to have been rejected, and shall be prohibited from performing all or any portion of the proposed services. Ctyy of� onas09 Item 3 2016 Pacific Pines Property Manage f 199 Acceptance by the City of any proposal submitted pursuant to this RFP shall not constitute any implied intent to enter into a contract for Property Management services. The City reserves the right to cancel, in part or in its entirety, or waive any irregularities or technical deficiencies in any proposal if it is in the best interest of the City to do so. A materially incomplete or non-responsive proposal shall be rejected. The City reserves the right to extend the date by which the submittals are due. The City is not required to select the lowest monetary proposal. The City reserves the right to award a contract to the proposer that presents the proposal that, in the sole judgment of the City, best accomplishes the desired results. The City may require the consultant to participate in negotiations and to submit such price, technical or other revisions of the proposal as may result from negotiations. The City reserves the right to accept or reject any or all proposals received as a result of this RFP or to negotiate with any qualified source. The City may either initiate a new RFP or abandon the acquisition of services. If the contract is awarded, the contract shall be awarded to the proposer based on demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required and who proposes to do the work at a fair and reasonable price, to the best advantage of the City. The proposer shall indemnify, define and hold harmless, the City against all liabilities or loss, and against all claims or actions based on or arising out of injury to, or death of persons or damage to or loss of property caused by acts or neglect of the proposer, his/her employees or agents in connection with the performance of this RFP. Interested firms shall be responsible for performing the work under this contract and shall be liable for his/her own negligence and acts of his/her employee. V. Content of Proposals: Title page: Type the name of the Applicant's agency/firm, address, telephone number, name of contact person, date, and the title of the RFP. Table of Contents: Identify the written material by section and by page number. Qualifications and Experience: Demonstrate the experience of the Consultant (team) to perform the necessary work and maintain a strict schedule of performance. Provide a brief overview of the Consultant (team) qualifications, emphasizing similar contracts or programs that required the performance of similar tasks and schedules. a. Identify the key personnel and areas of responsibility. Provide resumes and/or portfolios of the key personnel or Consultant Team (if partnering with another organization). b. Demonstrate that the personnel have the knowledge and skills to perform the project work and familiarity with the pertinent regulations Ityy of�ncci itas09 Item 3 2016 Pacific Pines Property Maanagemenl9P d. Provide experience working with federal housing programs, such as the HOME Investment Partnership Program, and Section 8 program. e. Provide a minimum of four (4) references. Approach: A detailed outline of the proposed approach to property management. Please specifically address the duties described in the Scope of Work section of this Request for Proposals, but include other appropriate approaches, items or considerations that are beneficial or warranted. Budget: Provide a detailed description of the fixed fee for requested services and a detailed, systematic delineation of the Scope of Work duties. The City will review budget proposals to determine maximum value, effectiveness, approach and performance of work within a reasonable budget. References: Provide a minimum of four references, including a brief description of recent similar work and complete contact information for the individual(s) with personal knowledge of the work done. VI. Selection Criteria: Proposals will be reviewed and ranked based upon the completeness of the proposal and the demonstrated ability of the firm to meet the objectives identified in the Scope of Work. The provision of any additional relevant information, clarity and neatness will also be considered in evaluating the proposals. After review and ranking by the EHA, one firm will be selected for contract negotiations. Submitted proposals will be evaluated by City staff based upon, but not limited to, the criteria below: • The proposer's approach, plan of work, and proposed distribution of responsibility; • Qualifications and experience in providing the requested services as exemplified by experience, including experience with the HOME and Section 8 Programs; • Demonstrate a thorough understanding of property management through prior experience; • Knowledge, experience and qualifications in financial management and customer service; • Total cost for services. Cost will be an important consideration At the sole option of the EHA, an alternate procedure may be to invite the highest ranked firms to an interview prior to the final selection. If the EHA selects this approach, sufficient time will be given to prepare an appropriate presentation and coordinate schedules. VII. Disclaimer: The City reserves the right to: 1) accept or reject any or all proposals received; 2) waive any non- substantive deficiency or irregularity; 3) negotiate with any qualified Proposer; 4) award a contract in what it believes to be the best interest of the City; 5) cancel this request, in part or its entirety, if it is deemed to be in the best interest of the City; 6) reject the Proposal of any Proposer who has previously failed to perform properly; 7) reject the Proposal of any Proposer who has failed to Ctyy of� on�as09 Item 3 2016 Pacific Pines Property M84 of 199 complete a contract within the specified timeframe; and/or 8) reject the Proposal of any Proposer that is not in a position to fulfill a resulting contractual obligation. This Request for Proposals (RFP) does not commit the City to award any contract, pay any pre-award expenses, or pay any costs incurred in the preparation of a Proposal. VIII. Submitting Proposals: Submit three (3) hard copies, and one (1) electronic copy of your proposal to the City of Encinitas, Planning & Building Department, no later than 5:00 p.m. (PST), Friday, January 22, 2016. Late or incomplete RFP submittals will be rejected and not considered. Disadvantaged Business Enterprises (DBE), Underutilized Disadvantaged Business Enterprises (UDBE), Women-Owned Business Enterprises (WBE), Section 3 Businesses, and other small businesses are encouraged to respond to this request for proposals. Submittals must be addressed to: Nicole Piano-Jones, Management Analyst Pacific Pines Property Management - RFP City of Encinitas Planning & Building Department 505 S. Vulcan Ave. Encinitas, CA 92024 Ctyy of ncci itas09 Item 3 2016 Pacific Pines Property Maanagemenl9P EXHIBIT A GENERAL CONDITIONS 2016-03-09 Item 3 86 of 105 General Conditions 1. LICENSE REQUIREMENT—a City of Encinitas business license is required for this contract which shall be obtained and paid for by the Consultant. 2. FORM OF PROPOSAL—The proposal shall be submitted in the format and quantity specified in the Request for Proposal document. 3. REJECTION OF PROPOSALS—The right is reserved to reject any and all Proposals. 4. NOTIFICATION OF WITHDRAWAL OF PROPOSAL—Proposals may be modified or withdrawn prior to the date and time specified for Proposal submission by an authorized representative of the Consultant's firm or by formal written notice. Proposals submitted will become the property of the City after the Proposal submission deadline. 5. INSURANCE — The City requires the Consultant to obtain and maintain a policy of professional liability (errors and omissions), automobile liability, public liability, general liability, and property damage insurance in an insurable amount of not less than one million ($1,000,000.00) for each occurrence or aggregate. 6. RIGHTS TO PERTINENT MATERIALS — All responses, inquiries, and correspondence relating to this Proposal and all reports, charts, displays, schedules, exhibits, and other documentation produced by the vendor that is submitted as part of the Proposal shall become the property of the City when received by the City. 7. EXCEPTIONS TO THE PROPOSAL — All requested information must be submitted as indicated. Any exceptions to Proposal terms and conditions must be included in writing in the Proposal response. 8. CONFIDENTIALITY OF DOCUMENTS—All documents submitted as part of the vendor's proposal will be deemed confidential during the evaluation process. Vendor proposals will not be available for review by anyone other than the City or its designated agents during the review process. 9. EXECUTION OF CONTRACT —The contract shall be signed by the selected Consultant and returned within 30 days of the award of contract. No proposal shall be considered binding upon the City until the execution of the contract. Failure to execute the contract in a timely manner shall be just cause for the annulment of the award. The award may then be given to the next best qualified respondent. 2016-03-09 Item 3 87 of 105 EXHIBIT B PROFESSIONAL SERVICE AGREEMENT 2016-03-09 Item 3 88 of 105 AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES THIS AGREEMENT is made and entered into as of the date of execution by the City of Encinitas, a municipal corporation, hereinafter referred to as "CITY", and CONSULTANT, hereinafter referred to as "CONSULTANT'. RECITALS The CITY requires outside assistance to provide the following services: [INSERT DESCRIPTION] CONSULTANT represents itself as possessing the necessary skills and qualifications to provide the services required by the CITY; NOW THEREFORE, in consideration of these recitals and the mutual covenants contained herein, the CITY and CONSULTANT agree as follows: 1.0 TERM OF AGREEMENT 1.1 This AGREEMENT shall be effective on and from the day, month and year of the execution of this document by the CITY. 1.2 CONSULTANT shall commence the performance of the services in accordance with the Scope of Work section provided in Attachment "A" to this AGREEMENT and shall continue such services until all tasks to be performed are completed, or this AGREEMENT is otherwise terminated. CONSULTANT shall complete the services and provide final data and reports no later than unless an extension of time is mutually agreed to by both parties. 2.0 CONSULTANT'S OBLIGATIONS (ATTACHMENT A) 2.1 CONSULTANT shall provide the CITY with the following services: The specific manner in which the services are to be performed is described in Attachment "A" which is attached hereto, and incorporated herein as though fully set forth at length, collectively hereinafter referred to as "DESCRIBED SERVICES". 2.2 CONSULTANT shall perform all work required to accomplish the DESCRIBED SERVICES in conformity with applicable requirements of law: Federal, State and Local. 2.3 CONSULTANT is hired to render the DESCRIBED SERVICES and any payments made to CONSULTANT are compensation fully for such services. 2016-03-09 Item 3 89 of 105 2.4 CONSULTANT shall maintain professional certifications as required in order to properly comply with all City, State, and Federal law. 3.0 PAYMENT FOR SERVICES (ATTACHMENT B) Payment to CONSULTANT to render the DESCRIBED SERVICES hereunder shall be as set forth in Attachment "B" which is attached hereto and incorporated herein as though fully set forth at length. 4.0 SUBCONTRACTING (ATTACHMENT C) 4.1 If CONSULTANT subcontracts for any of the work to be performed under this AGREEMENT, CONSULTANT shall be as fully responsible to the CITY for the acts and omissions of consultant's subcontractors and for the persons either directly or indirectly employed by the subcontractors, as CONSULTANT is for the acts and omissions of persons directly employed by CONSULTANT. Nothing contained in the AGREEMENT shall create any contractual relationship between any subcontractor of CONSULTANT and the CITY. CONSULTANT shall bind every subcontractor to the terms of the AGREEMENT applicable to consultant's work unless specifically noted to the contrary in the subcontract in question and approved in writing by the CITY. 4.2 The name and location of the place of business of each subcontractor who will perform work or labor or render service to the CONSULTANT in performing this AGREEMENT are contained in Attachment "C" which is attached hereto and incorporated herein as though fully set forth at length. 5.0 EQUIVALENT ITEMS (ATTACHMENT D) 6.0 EXTRA WORK CONSULTANT shall not perform work in excess of the DESCRIBED SERVICES without the prior, written approval of the CITY. All requests for extra work shall be by written Change Order submitted to the CITY prior to the commencement of such work. 7.0 VERBAL AGREEMENT OR CONVERSATION No verbal agreement or conversation with any officer, agent or employee of the CITY, either before, during or after the execution of this AGREEMENT, shall effect or modify any of the terms or obligations herein contained nor shall such verbal agreement or conversation entitle CONSULTANT to any additional payment whatsoever. 2016-03-09 Item 3 90 of 105 8.0 TERMINATION OF AGREEMENT 8.1 In the event of CONSULTANT'S failure to prosecute, deliver, or perform the DESCRIBED SERVICES, the CITY may terminate this AGREEMENT by notifying CONSULTANT by certified mail of said termination. Thereupon, CONSULTANT shall cease work and within five (5) working days: (1) assemble all documents owned by the CITY and in consultant's possession and deliver said documents to the CITY and (2) place all work in progress in a safe and protected condition. The City Manager of the CITY shall make a determination of the percentage of work which CONSULTANT has performed which is usable and of worth to the CITY. Based upon that finding, the CITY shall determine any final payment due to CONSULTANT. 8.2 This AGREEMENT may be terminated by either party, without cause, upon the giving of ten (10) days written notice to the other party. Prior to the 10th day following the giving of the notice, the CONSULTANT shall: (1) assemble the completed work product to date, and put same in order for proper filing and closing, and deliver said product to the CITY and (2) place all work in progress in a safe and protected condition. The City Manager of the CITY shall make a determination of the percentage of work which CONSULTANT has performed which is usable and of worth to the CITY. Based upon that finding, the CITY shall determine any final payment due to CONSULTANT. 9.0 COVENANTS AGAINST CONTINGENT FEES CONSULTANT warrants that it has not employed or retained any company or person, other than a bona fide employee working for CONSULTANT, to solicit or secure this AGREEMENT, and that CONSULTANT has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this AGREEMENT. For breach or violation of this warranty, the CITY shall have the right to terminate this AGREEMENT without liability or, at the CITY'S discretion to deduct from the AGREEMENT price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 10.0 OWNERSHIP OF DOCUMENTS 10.1 All plans, studies, sketches, drawings, reports and specifications as herein required are the property of the CITY, whether or not the CITY proceeds with the project for which such documents are prepared. 10.2 If the CITY reuses such documents for any reason other than for the project for which they are prepared, without CONSULTANT'S prior written authorization which shall not be unreasonably withheld, the CITY waives any claim against CONSULTANT for such unauthorized use and will indemnify and hold CONSULTANT harmless from any claim or liability for injury or loss allegedly arising from the CITY'S unauthorized use of such documents. 2016-03-09 Item 3 91 of 105 11.0 STATUS OF CONSULTANT CONSULTANT shall perform the services provided for herein in a manner of CONSULTANT'S own choice, as an independent contractor and in pursuit of CONSULTANT'S independent calling, and not as an employee of the CITY. CONSULTANT shall be under control of the CITY only as to the result to be accomplished and the personnel assigned to the project. However, CONSULTANT shall confer with the CITY. 12.0 HOLD HARMLESS 12.1 CONSULTANT agrees to indemnify and hold the CITY and CITY'S officers, officials, employees and agents harmless from, and against any and all liabilities, claims, demands, causes of action, losses, damages and costs, including all costs of defense thereof, arising out of, or in any manner connected directly or indirectly with, any acts or omissions of CONSULTANT or CONSULTANT'S agents, employees, subcontractors, officials, officers or representatives. Except as otherwise provided in this Section, upon demand, CONSULTANT shall, at its own expense, defend CITY and CITY'S officers, officials, employees and agents, from and against any and all such liabilities, claims, demands, causes of action, losses, damages and costs. 12.2 CONSULTANT'S obligation herein does not extend to liabilities, claims, demands, causes of action, losses, damages or costs that arise out of the CITY'S intentional wrongful acts, CITY'S violations of law, or the CITY'S sole active negligence. 13.0 ASSIGNMENT OF CONTRACT CONSULTANT is without right to and shall not assign this AGREEMENT or any part thereof or any monies due hereunder without the prior written consent of the CITY which shall not be unreasonably withheld. 14.0 INSURANCE 14.1 CONSULTANT shall obtain, and during the term of this AGREEMENT shall maintain insurance policies of general liability, automobile liability, and property damage insurance from an insurance company authorized to be in business in the State of California. Each such policy shall be in an amount of not less than one million dollars ($1,000,000) for each occurrence, and shall be endorsed with the following language: A. The CITY and CITY's officers, elected officials, employees, agents and volunteers are to be covered as additional insured with respect to liability arising out of the acts and omissions by or on behalf of CONSULTANT. B. The insured waives all rights of subrogation against the CITY and CITY's officers, officials, employees, agents and volunteers. 2016-03-09 Item 3 92 of 105 C. Provide that the policy shall remain in full force during the full term of this AGREEMENT and shall not be canceled, voided, terminated, reduced, or allowed to expire without thirty (30) days prior written notice from the issuance company being received by CITY. 14.2 CONSULTANT shall obtain, and during the term of this AGREEMENT shall maintain, a policy of professional liability insurance that shall: A. Be from an insurance company authorized to be in business in the State of California; B. Be in an insurable amount of not less than $1,000,000 for each occurrence; and C. Provide that the policy shall remain in full force during the full term of this AGREEMENT and shall not be canceled, terminated, or allowed to expire without thirty (30) days prior written notice to the CITY from the insurance company. 14.3 Before CONSULTANT shall employ any person or persons in the performance of the AGREEMENT, CONSULTANT shall procure a policy of Worker's Compensation Insurance as required by the Labor Code of the State of California. 14.4 CONSULTANT shall provide certificates of insurance with original endorsements to CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this AGREEMENT. Current certification of insurance shall be kept on file with the CITY at all times during the term of this AGREEMENT. 15.0 DISPUTES 15.1 If a dispute should arise regarding the performance of this AGREEMENT, the following procedures shall be used to address any question of fact or interpretation not otherwise settled by agreement between the parties. Such questions, if they become identified as part of a dispute between persons operating under the provisions of the AGREEMENT, shall be reduced to writing by the complaining party. A copy of such documented dispute shall be forwarded to the other party involved along with recommended methods of resolution. The party receiving the letter shall reply to the letter along with a recommended method of resolution within ten (10) days of receipt of the letter. 15.2 If the dispute is not resolved, the aggrieved party shall send to the CITY'S Manager a letter outlining the dispute for Manager's resolution. 15.3 If the dispute remains unresolved and the parties have exhausted the procedures of this section, the parties may then seek remedies available to them at law. 2016-03-09 Item 3 93 of 105 16.0 NOTICES 16.1 Any notices to be given under this AGREEMENT, or otherwise, shall be served by certified mail. 16.2 For the purposes hereof, unless otherwise provided in writing by the parties hereto, the address of the CITY and the proper person to receive any notice on the CITY'S behalf is: TO: City of Encinitas Attn: City Manager 505 South Vulcan Avenue Encinitas, CA 92024 (760) 633-2600 16.3 For the purposes hereof, unless otherwise provided in writing by the parties hereto, the address of CONSULTANT and the proper person to receive any notice on the CONSULTANT'S behalf is: 17.0 CONSULTANT'S CERTIFICATION OF AWARENESS OF IMMIGRATION REFORM AND CONTROL ACT OF 1986 CONSULTANT certifies that CONSULTANT is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 USC §§ 1101-1525) and has complied and will comply with these requirements, including but not limited to verifying the eligibility for employment of all agents, employees, subcontractors and consultants that are included in this AGREEMENT. 19.0 CONSULTANT'S AWARENESS AND COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT OF 1990 CONSULTANT certifies that CONSULTANT is aware of the requirements of the Americans with Disabilities Act of 1990 (42 USC §§ 12101) and has complied with and will comply with these requirements, included but not limited to verifying compliance of their contractors, consultants, agents, and employees. 20.0 CONSULTANT'S COMPLIANCE WITH NON-DISCRIMINATION During the performance of this Contract, CONSULTANT and its subconsultant shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (e.g., cancer), age (over 40), marital status, and denial of family care leave. 2016-03-09 Item 3 94 of 105 CONSULTANT and subconsultants shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. CONSULTANT and subconsultants shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Contract by reference and made a part hereof as if set forth in full. CONSULTANT and its subconsultants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement. CONSULTANT shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Contract. CONSULTANT CITY City of Encinitas by by Date City Manager Date APPROVED AS TO FORM: Glenn Sabine, City Attorney Date 2016-03-09 Item 3 95 of 105 ATTACHMENT "A" Case # Finance # (Manner of Performing the Services) CONSULTANT shall perform the services in the following manner: (Scope of Work attached) 2016-03-09 Item 3 96 of 105 ATTACHMENT "B" (Payment For Services) [Fee Detail as Appropriate] 2016-03-09 Item 3 97 of 105 ATTACHMENT "C" Case # Finance # (Subcontractors) Name Business Address Work to be Done 2016-03-09 Item 3 98 of 105 Exhibit C PROPOSAL COVER SHEET 2016-03-09 Item 3 99 of 105 PROPOSAL COVER SHEET PROVIDER'S PROPOSAL TO PROVIDE PROFESSIONAL SERVICES PROPERTY MANAGEMENT OF SIXTEEN HOUSING AUTHORITY OWNED UNITS To the Honorable Mayor and City Council of the City of Encinitas: In compliance with the REQUEST FOR PROPOSALS, the undersigned hereby agrees to furnish all labor, materials, and equipment to perform the service described in the proposed contract which is enclosed herewith; and to do so in strict accordance with the provisions of the proposed CONTRACT. The proposed contract contains a provision whereby the PROVIDER agrees to indemnify the CITY. PROVIDER's proposal should take this requirement into account when preparing the proposal. Please refer to Section 12 of the Standard Form Professional Services Agreement. ENCLOSURES 1. A STATEMENT OF EXPERIENCE AND FINANCIAL CONDITION on the CITY's form, dated and signed by the PROVIDER with supporting documents; and 2. A STATEMENT OF ECONOMIC INTERESTS, dated and signed by PROVIDER. SIGNATURE OF PROVIDER This document is signed by an individual clearly authorized to bind the PROVIDER to the proposal for a period of 90 days. The PROVIDER agrees to be bound by the provisions of this REQUEST FOR PROPOSALS. PROVIDER: ADDRESS: PHONE: by: Sign Date Title: 2016-03-09 Item 3 100 of 105 Exhibit D STATEMENT OF EXPERIENCE AND FINANCIAL CONDITION 2016-03-09 Item 3 101 of 105 STATEMENT OF EXPERIENCE AND FINANCIAL CONDITION PROPERTY MANAGEMENT OF SIXTEEN HOUSING AUTHORITY OWNED UNITS In submitting this PROPOSAL, the PROVIDER represents that PROVIDER has a demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the proposed contract in a manner that is satisfactory to the CITY. The PROVIDER represents that PROVIDER's financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, and experience in working with the public, neighborhood groups and public agencies all suggest that the PROVIDER is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency. In support of these representations, PROVIDER presents herewith letters of commendation and/or recommendation; reports; titles of lawsuits involving PROVIDER during the preceding ten years; personnel strength reports, current and anticipated projects that PROVIDER will be expending effort upon in the State of California during the performance of the proposed contract; a list of all public contracts performed by PROVIDER during the preceding five years that identifies the governmental agencies involved; and such other documents that the PROVIDER deems necessary to support PROVIDER's PROPOSAL.The supporting documents are enclosed herewith. SIGNATURE OF PROVIDER This document is signed by an individual clearly authorized to bind the PROVIDER. PROVIDER: ADDRESS: PHONE: by: Sign Date Title: 2016-03-09 Item 3 102 of 105 Attachment 4 Pacific Pines Overview 2016-03-09 Item 3 103 of 105 2016-03-09 Item 3 104 of 105 HOUSING AUTHORITY OF THE CITY OF ENCINITAS 505 South Vulcan Avenue ■■ F■ Encinitas, CA 92024 u PACIFIC PINES OVERVIEW The Encinitas Housing Authority owns 16 condominium units (one and two bedroom) at Pacific Pines, located in the community of Cardiff. All of the 16 units are rented to very- low to low-income (50 percent to 80 percent of Area Median Income) households. Pacific Pines was originally built as the Torrey Pines Racquet Club Apartments in 1984 with bond financing, and 37 of the 186 units, were restricted affordable rental units. The apartments began a condominium conversion process beginning in 2002, at which time the City saw an opportunity to preserve some of the affordable units that otherwise would have been lost. The Housing Authority utilized a combination of Federal funding sources and bonds to purchase the units. A total of 18 affordable units were preserved, 16 of which the Housing Authority owns and maintains as rentals, and two of which were sold to qualifying low-income buyers with City down-payment assistance. The driving motivation to purchase the units was not only to preserve the existing affordability, but also to provide a permanent rental opportunity to Section 8 Housing Choice Voucher program participants. As a result, majority of the units are currently occupied by Section 8 program participants. The Encinitas Housing Authority Board is the decision making body and is comprised of the five members of the City Council and two tenant commissioners. The Encinitas Housing Authority Board meets on an as-needed basis for management and financial matters. Encinitas Housing Authority staff are located within the Advanced Planning division of the Planning and Building Department. Additionally, the Housing Authority retains the services of a professional property management firm to manage the units. Phone (760)633-2723 • Fax(760)633-2818 2016-03-09 Item 3 105 of 105