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HomeMy WebLinkAboutContracts & Agreements_180-2025AGREEMENT TO PERFORM PROFESSIONAL SERVICES This agreement for the provision of Homeless Resource Services providing property management services for the Project Homekey facility in Redlands, California ("Agreement") is made and entered in this 161i' day of September, 2025 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City") and Many Mansions, a California nonprofit public benefit corporation (PM Agent), ("Consultant"). City and Consultant are sometimes individually referred to herein as a "Party" and, together, as the "Parties." In consideration of the mutual promises contained herein, City and Consultant agree as follows: ARTICLE 1— ENGAGEMENT OF CONSULTANT 1.1 City hereby engages Consultant to provide PM Agent to provide homeless resources including providing property management services for a Project Homekey facility located at 1675 Industrial Park Ave., Redlands, California 92374 (Facility) services for City (the "Services"). 1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services. ARTICLE 2 — SERVICES OF CONSULTANT 2.1 The Services that Consultant shall perform are more particularly described in Exhibit "A," titled "Scope of Services," which is attached hereto and incorporated herein by this reference. 2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to, any applicable State prevailing wage laws. ARTICLE 3 — RESPONSIBILITIES OF CITY 3.1 City designates make available PM Agent information in its possession that may reasonably assist PM Agent in providing the Services, as City's representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services. ARTICLE 4 — PERFORMANCE OF SERVICES 4.1 PM Agent shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit "A," titled, "Scope of Services" ("Services") which is attached hereto and incorporated herein by this reference. C\cmo\AgrwmontsVMaay Mansions FY2526-024.doc-w n 4.2 The term of this Agreement shall be for a period of one (1) year from the Effective Date of this Agreement (the "Initial Term'). The City shall have the option to extend the Initial Term of this Agreement by two (2) additional one-year terms (each, an "Extended Term"), on the same terms and conditions, by providing written notice to the PM Agent at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term 4.3 If Consultant's Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to City, consistent with City Council -adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City staff. ARTICLE 5 — PAYMENTS TO CONSULTANT The compensation for Consultant's performance of the Services shall not exceed the amount of [Three Hundred Thousand Dollars] ($300,000) for the Services provided during the Initial Term. Should this Agreement be extended, the compensation for Consultant's performance for the Services shall not exceed the amount of [Three Hundred Thousand Dollars] ($300,000) for the first Extended Term; and [Three Hundred Thousand Dollars] ($300,000) for the second Extended Term, bringing the total possible amount of compensation to a not -to -exceed amount of [Nine Hundred Thousand Dollars] ($900,000). For the Initial Term and each Extended Term, City shall pay Consultant on a time and materials basis up to the not to not -to -exceed amount in accordance with the rates specified in Exhibit `B," titled "Price and Fee Bid," which is attached hereto and incorporated herein by this reference. 5.1 Consultant shall submit monthly invoices to City describing the Services performed during the preceding month. Consultant's invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services. City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant's invoice. 5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section: 2 is\cmo\Ag=ments\Many Mansions FY2526-024.doe-wm CITY: City Clerk City of Redlands 35 Cajon Street P.O. Box 3005 (mailing) Redlands, CA 92373 jdonaldson@cityofredlands.org Phone: (909) 798-7531 CONSULTANT: Rick Schroeder, President & CEO Many Mansions 1259 E. Thousand Oaks Blvd. Thousand Oaks, CA 91362 rick@manymansions.org Phone: (805) 496-4948 X227 Fax: (805) 497-1305 ARTICLE 6 — INSURANCE AND INDEMNIFICATION 6.1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required 'insurance listed below is obtained by Consultant. Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City. A. Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self -insured or exempt from the workers' compensation laws of the State of California. Consultant shall execute and provide City with Exhibit "C," titled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference, prior to performance of the Services. B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. C. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made. D. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non -owned vehicles, and employee non -ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. E. Consultant is expressly prohibited from assigning or subcontracting any of the L\cmo\Agmements\Many Mansions FY2526-024.doc-wn Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor. 6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or liability, including attorneys' fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services. ARTICLE 7 — CONFLICTS OF INTEREST 7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Consultant's Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement. 7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant: A. Does not make a governmental decision whether to: (i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revolve any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof. B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302. 7.3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk's office pursuant to the written instructions provided by the City Clerk. 4 I:%cmolAg=rnc ts\M=y Mansions FY2526-024.doc-wm ARTICLE 8 — GENERAL CONSIDERATIONS 8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party. 8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City's immediate termination of this Agreement. 8.3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any its agents shall have control over the conduct of Consultant or Consultant's employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation. 8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City's intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination. 8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant. 8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained 1Acmo\Agreements\Many Mnnsions FY2526-024.doc-w herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant. 8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California. 8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement. IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement. CITY OF REDLANDS By: Mario Saucedo, Mayor ATTEST: ne Donaldson, City Clerk 6 Bemo\AgreementsNany Mansions FY2526-024.doe-wm MANY MANSIONS By: Rick S oeder, President & CEO EXHIBIT "A" SCOPE OF SERVICES A. BACKGROUND INFORMATION The property is a Homekey Program housing facility located at 1675 Industrial Park Ave., Redlands, California 92374. Serving formerly homeless individuals and represents a critical component addressing homelessness through dignified, stable housing solutions. B. PROJECT DESCRIPTION The property management company will be responsible for the day-to-day operations, maintenance, program monitoring, compliance with the Regulatory Agreement and other funding source requirements, compliance with tenant rental and income limits, and administration of a permanent housing facility that includes but is not limited to: • Residential units • Common areas and community spaces • On -site laundry facilities • Security systems • Parking facilities • Outdoor spaces C. SERVICES The selected property management company will be responsible for: 1.Property Operations: a. Maintain 24n property coverage, including an on -site resident manager b. Provide immediate communication to City staff in case of emergency c. Implement and maintain a comprehensive maintenance program d. Coordinate with service providers e. Manage trait turnover and preparation £ Ensure compliance with all applicable housing regulations and requirements g. Maintain safety and security protocols h. Coordinate pest control and janitorial services i. Contract with and manage vendors, including but not limited to: Plumbing, HVAC, Electrical, Fire Alarm, Security, Janitorial, and. Landscaping in compliance with applicable procurement and prevailing wage laws and regulations. j. Provide detailed and timely accounting for all expenses incurred, including but not limited to maintaining a record of all hourly work completed by employees and vendors, bills received, and supplies ordered in connection with maintaining and operating the property. 2. Financial Management a. Collect and process resident rent payments b. Calculate tenant rental portion in accordance with state and federal laws and regulations. c. Maintain accurate financial records and provide monthly reports d. Prepare and manage the operating budget and expenses e. Process vendor payments 1Acmo\Agrwments4Many Mansions CY2526-024.doc-man f. Maintain required insurance coverage g. Establish a segregated bank account for operating expenses for the purpose of maintaining funds available for property management, general maintenance, payments for supplies, equipment and services associated with maintaining and operating the property. 3. Resident Services a. Process tenant applications, accept referrals from the Coordinated Entry System (CES) if and where required, and maintain waiting lists b. Conduct move-in/move-out inspections c. Respond to maintenance requests d. Maintain resident files and records e. Facilitate communication between residents and service providers f. Ensure compliance with Fair Housing laws g. Comply with the Coordinated Entry System for placement of residents. 4. Facility Maintenance a. Perform routine preventive maintenance b. Coordinate repairs and replacements c. Maintain building systems (HVAC, plumbing, electrical) d. Maintain ground maintenance and landscaping e. Manage waste disposal and recycling programs f. Conducts procurement for all service contracts and staffing following City procurement policies. g. Assure that, where applicable, state prevailing wages are paid for work performed onsite based on the requirements of the applicable funding sources related to this property. 5. Project Homekey/HCD Requirements PM Agent acknowledges to lease units in accordance with the project guidelines of the Project HomeKey Program administered by HCD. a. Project Home -Key Specific Lease Provisions including the following: Redlands Good Nite Inn Assessor Parcel Number (APN) 1675 Industrial Park Ave 0292-063-38 Redlands, CA 92374 County of San Bernardino # of Units Non- Homekey All Income Restriction to Subset of Bedrooms Homekey Assisted Limit Target Population Units Units Manager 1 0 1 N/A N/A Unit 0 Studio 37 0 37 30% At Risk of Homelessness 0 Studio 25 0 25 30% 1 Chronically Homeless 0 Studio 36 0 36 30% N/A Totals: 99 0 99 N/A N/A [:\cmo\Agreements\Many Mansions FY2526-024.doc-w n b. PM Shall ensure that at least twenty five percent (25%) of the Project's Assisted Units are restricted to occupancy by the Chronically Homeless and PM shall ensure that at least fifty percent (50%) of the Project Assisted Units are restricted to occupancy by the Homeless. 6. The City shall furnish PM Agent with written descriptions of such requirements as they relate to PM Agent's leasing property management and fiscal management duties hereunder. Incident thereto, the following provisions shall apply: a. PM Agent shall, prior to approving each rental application and prior to allowing prospective tenants to take occupancy, require each prospective tenant household to complete required forms and provide documentation to qualify application for residency. All applications will be submitted to Step Up's Compliance Department for approval. b. The Compliance Department will verity program guidelines are followed. A Tenant Income Certification, Managers Certification, and Calculation sheet will be used to confirm annual income. c. PM Agent is authorized without the City's prior consent to update forms, policies, and procedures to adhere to Project Homekey/HCD guidelines. d. Without the City's prior written consent, PM Agent shall not enter into any lease on behalf of the City to a tenant household who fails to meet the income eligibility requirements for Project Homekey. e. PM Agent shall maintain and preserve all written records of tenant income and household size, and any other information reasonably requested by the City in writing in connection with the Project HomeKey, throughout the term of the Agreement, and shall turn all such records over to the City upon the termination or expiration of this Agreement or upon written request of Owner. f. PM Agent shall, to the extent such is within the scope of its authority and duties hereunder, comply with all leasing, management, reporting, and similar requirements in connection with the Project Homekey/HCD, whether such requirements be from a monitoring agency or any branch of government g. PM Agent shall cause the building to be maintained in compliance with all local health, safety, and building codes to the extent of available funds, and shall promptly give written notice to the City if PM Agent receives notice of any such code violation relating to the building. 9 BemoUgreementsWany Mansions PY2526-024.doc-wm EX nIT'B" Rate Sheet ]Fee Base Units Monthly $ Annual $ Property Management $81 PUPM 98 $7,938 $95,256 Financial Management $13 PUPM 98 $1,274 $15,288 Total $9,212 $110,544 Staff FTE Rate (Hourly) Hours Annual Annual $ Property Management 1.0 $28.00 $2,080 $56,240 Maintenance Tech 1.0 $27.00 $2,080 $56,160 Subtotal $112,400 *Total Benefits, Taxes, etc. $27 897 Total $140 297 *Payroll Taxes & Benefits include employer taxes, mileage reimbursements, and benefits. Area Amount Fees $110,544 Reimbursed Personnel Costs $140,297 Total $250,841 10 I:\cmo\AWmments\Many Mansions FY2526-024.doc-w EXHIBIT "C" WORKERS' COMPENSATION INSURANCE CERTIFICATION every employer, except the State, shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one or more insurer -- duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self -insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees. CHECK ONE i/ I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861). I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance. I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. MANY MANSIONS ` bIlls- B y Date: Ric Schroeder, President & CEO 11 I: lcmolAgreements\Many Mansions FY2526-024.doc-wm