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SR 12-06-2016 3G Ci ty Council Report City Council Meeting : December 6, 2016 Agenda Item: 3.G 1 of 3 To: Mayor and City Council From: Andy Agle, Director , Housing and Economic Development, Housing Division Subject: Sixth Modification of Property Management Contract with Real Estate Consulting and Services, Inc. Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and e xecute a sixth modification to C ontract #9183 in the amount not to exceed $281,571, including a ten percent contingency, with Real Estate Consulting and Services, Inc., a California -based compan y, to provide property management services at City -owned Mountain View Mobile Home Park. The proposed amendment would result in an eighty - seven month amended contract with a new total contract amount not to exceed $3,694,887, and would extend the contract term for six months through June 2017. Executive Summary Real Estate Consulting and Services, Inc. (RECS) provides property management services for Mountain View Mobile Home Park (MVMHP), a City -owned mobile home park community with 105 rental spaces for affordable housing. Staff recommends extending the contract for an additional six months through June 2017 resulting a an eighty -seven month total contract term to provide consistent property management until anticipated transfer of MVMHP to a new owner by June 2017. The increase in contract budget of $281,571 includes management fees, estimated operating expenses for a six - month period, and a standard ten percent contingency. Background A professional service agreement with RECS was first approved by Coun cil on March 9, 2010 (Attachment A) to provide property management services for MVMHP. On September 13, 2011 (Attachment B), Council approved a second modification, consolidating property management services with RECS for four City -owned residential proper ties. RECS has performed well, demonstrating expertise in property management services, familiarity with City rental regulations, and professionalism in their communications with residents. Recognizing the benefits residents have from a provider with a loc al presence, Council approved the third modification on June 11, 2013 (Attachment C) extending contract services through June 2015, and a fourth 2 of 3 modification on April 28, 2015 (Attachment D) extending contract services with RECS through December 2016. On M arch 1, 2016, Council approved the fifth modification (Attachment E) to increase the contract budget due to unanticipated capital repairs and additional property management services. On April 12, 2016, Council authorized the issuance of a Request for Propo sal (RFP) to solicit proposals from affordable housing organizations to acquire and operate MVMHP as affordable housing. The RFP was issued on September 28, 2016, and transfer of the property is anticipated to occur by June 2017. Discussion The scope of p roperty management duties that RECS currently performs covers all necessary routine functions, including: handling day -to -day operations; supervision and coordination of maintenance and repair contracts; payment of all operating expenses such as utilities, maintenance, repairs and fees; occupancy responsibilities, including leasing and rent collection. City’s Housing staff provides direct oversight of RECS to ensure effective and efficient management of the City properties, including conferring with RECS we ekly and reviewing monthly status reports. Mountain View Mobile Home Park is a unique property with a varied mix of homeowners and renters. To comprehensively understand the concerns and expectations of all residents and incorporate comments and feedbac k into the RFP, staff facilitated three open forums with MVMHP residents and presented the draft RFP at a Housing Commission meeting, over a five -month period. The review and comment period garnered valuable feedback for the RFP, but delayed issuance of th e RFP, and correspondingly, the anticipated transfer of MVMHP. Therefore, staff recommends extending the existing property management contract with RECS for an additional six months through June 2017, which would allow for continuity of services through th e anticipated transfer period. The current contract expires on December 31, 2016. The projected budget is a 21% increase over the previous period. Major contributors to the increase include modernization of pool plumbing and electrical systems, increase in utility costs, and repairs and maintenance due to vandalism to the irrigation and drainage systems along the frontage of the property. 3 of 3 Financial Impacts and Budget Actions The contract modification to be awarded to RECS is $281,571, for an amended contra ct total not to exceed $3,694,887. Funds are available in the FY 2016 -17 budget in the Housing and Economic Development Department. The contract will be charged to account 01264.533220. Prepared By: Ava Lee, Senior Development Analyst Approved Forwarde d to Council Attachments: A. March 9, 2010 Staff Report B. Septe mber 13, 2011 Staff Report C. June 11, 2013 Staff Report D. April 28 , 2015 Staff Report E. March 1, 2016 Staff Report F. Written Comments 1 Vernice Hankins From:Cris Mac <crismac11111@gmail.com> Sent:Tuesday, December 06, 2016 1:56 PM To:councilmtgitems Subject:City Council Meeting 12/06/2016 Agenda item 3-G Dear  Councilors,  REC&S  is  a  misuse  of  Public  funds, they  should  be  paid  half  of  what  they  get.  They  are  never  present, only  do  maintenance  when  something  like  this  contract  renewal  is  happening, or  the  RFP  walk   around  etc.  The  contract  calls  for  the  park  manager  to  be  paid  $95: per ‐hour, a  lot  of  money  for  someone  who  is  no t  present. A  time   clock  would  help  fix  this  hemorrhage  of  City  Funds, so  that  the  hrs  of  operation  are  actually  in  operation  etc  Cris  McLeod   MVMHP  INC  Secretary/ PNA  Chair   Item 3-G 12/06/2016 Item 3-G 12/06/2016 1 Vernice Hankins From:mickey475@juno.com Sent:Tuesday, December 06, 2016 3:42 PM To:councilmtgitems Subject:Vote no on item 3G/management at 1930 Stewart St. Dear  Councilmembers:    I  do  not  support  Item  3G  which  is  an  extension  of  Contract  9183  with  Real  Estate  Consulting  and  Services  Inc  ‐ for   management  at  1930  Stewart  St.    I  believe  an  audit  should  be  done  of  the  large  amounts  of  money  they  supposedly  spend.  One  drive  through  this  park   should  cause  one  to  question  the  yearly  park  maintenance  fees  in  the  10's  of  thousands.    Thank  you   Michele  Cole     ____________________________________________________________  Warning: Don't  Use  Probiotics  Before  You  See  This  Gundry  MD   http://thirdpartyoffers.juno.com /TGL3131/58474cd5ee5654cd512edst01vuc   Reference:    Modify  Contract  No. 9183    (CCS)