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HomeMy WebLinkAboutRequest for ProposalAttachment 3 Request for Proposal for Kimball Tower and Morgan Tower Property Management Services Community Development Commission of the City of National City 1243 National City Boulevard National City, CA (619) 336-4279 C?1,.L INCORPORATED REQUEST FOR PROPOSALS FOR PROPERTY MANAGEMENT SERVICES KIMBALL AND MORGAN TOWERS Key RFP Dates: Issued: February 1, 2012 Walk- Thni: February 9, 2012 (2 p.m.) Submittal: February 29, 2012 (4 p.m. deadline) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY REQUEST FOR PROPOSALS PROPERTY MANAGEMENT SERVICES FOR MORGAN TOWER 1415 "D" AVENUE NATIONAL CITY, CA 91950 AND KIMBALL TOWER AND 1317 "D" AVENUE NATIONAL CITY, CA 91950 BRIEF BACKGROUND OF CITY OF NATIONAL CITY National City is located in San Diego County, approximately five miles south of downtown San Diego and eleven miles north of the Mexican border. It encompasses 9.2 square miles and is considered almost fully developed. It is bordered by the City of San Diego to the north and east, the San Diego Bay to the west, and the City of Chula Vista to the south. In addition, a small unincorporated community, known as Lincoln Acres, is located to the southeast of National City, generally north of SR-54 and east of I-805. 1-5 and I-805 cross National City from north to south, and SR-54 traverses the southern edge. National City is San Diego County's second oldest city and was incorporated on September 17, 1887. KIMBALL AND MORGAN TOWER HOUSING DEVELOPMENTS Morgan Tower, 1415 "D" Avenue, National City, California, is a 152-unit nine -story residential facility for elderly and disabled persons. Morgan Tower has been in operation since June of 1979. The building is insured by HUD under Section 231 of the National Housing Act and most residents are assisted through a Section 8 Project -Based Assistance Contract with the U.S. Department of Housing and Urban Development. Kimball Tower, 1317 "D" Avenue, National City, California, was constructed and occupied in January of 1987. It consists of 149 rental units, a manager's unit, and an assistant manager's unit, for a total of 151 units. Most residents in this building are assisted under the Section 8 Tenant -Based Rental Assistance Program. Since 2006, Kimball Tower is no longer restricted by a recorded affordability covenant. However, Kimball Tower continues to be operated as an affordable senior housing building. 2 Kimball and Morgan Tower were completed, with the intent of providing National City's senior population a comfortable, safe place to be housed. The developments were completed separately in joint ventures between the Community Development Commission of the City of National City (CDC) and the United States Department of Housing and Urban Development. All of the rental units at Morgan Tower and Kimball Tower are one -bedroom, approximately 550 square feet in area, with complete kitchen. All persons living at Morgan Tower and Kimball Tower must be able to care for themselves and live independently. The residences are not care facilities. The 303 units are supported by a variety of common rooms, a business office, and living quarters for three staff households. All residents of Morgan Tower and Kimball Tower must be of extremely low to very low income and able to care for themselves. Morgan Tower residents are under the Section 231 Housing Subsidy Program while Kimball Tower residents pay approximately 30% of their adjusted income as rent. The Project Management Company maintains the Morgan Tower waiting list and the Housing and Grants Division of the City of National City Administrative Services Department maintains the Kimball Tower waiting list. The facility management requires services for complete maintenance, repair and operation of the facilities, 24 hour on duty staff presence, and rent collection and includes providing senior oriented recreational activities and limited resident counseling. Only Morgan Tower is subject to an annual inspection by the Department of Housing and Urban Development and must meet their livability standards. Applicable HUD forms, including Form 9839-b, will be required of the successful bidder. Since 2006, Kimball Tower does not have affordability requirements and is not under a Department of Housing and Urban Development contract but the City desires it to continue to be operated as an affordable housing project. The National City Nutrition Center is an independent operation of the City of National City located in a front one-story portion of Morgan Tower. Property revenues from Morgan Tower and Kimball Tower have been used to provide maintenance services to the Nutrition Center in the past but a new agreement will be executed with the Nutrition Center operators separating the responsibilities for maintenance more in -line with a traditional tenant improvement lease agreement. The City, under a separate and independent RFP, is currently seeking proposals to operate the Nutrition Center. Each of the housing towers is considered a stand-alone project for management considerations. Separate budgets and accounting responsibilities apply to the each project. Morgan Tower was developed under a Section 231 Housing Project Based Subsidy Program and Kimball Tower receives Section 8 Tenant Based Rental Assistance. The management proposal includes both projects for reason of responsibility, efficiency, communication, coordination, and economy of scale. However, each Tower will have a separate management agreement. A management plan will be required and may be combined for both residential towers. Security for the buildings is the responsibility of the project management company. Cost for these services must be part of the management budget. 3 1. INTRODUCTION A. Purpose of the RFP: The purpose of the Request for Proposals (RFP) is to solicit offers from qualified, experienced property management companies ("Contractor") interested in providing full service property management services to perform management and operation of the City of National City Community Development Commission (CDC) owned 303-unit Kimball and Morgan Tower Housing Development, consisting of 300 rental units (all one bedroom) providing housing to tenants in addition to a resident manager and two assistance resident managers units. The property has been diligently maintained through consistent efforts to provide modernization upgrades to the buildings and the site. On site, off street parking consist of 177 open parking stalls with 30 being disabled stalls. Additional parking is typically accommodated along either side of D Avenue and Kimball Way. On the northwest corner, on a separate parcel, is the City of National City Senior Center operated and owned by the City of National City. Eventually this area may be developed to house up to an additional 200 senior units. Onsite management also consists of the expectation to provide senior social services programs and to monitor the safety and well being of the tenants, in addition to providing timely notification to either family or the appropriate authority in cases of emergencies. The goal of the Community Development Commission is to develop a stronger and expanded social and recreational program including social activities, physical exercise, memory exercise, crafts, special field trips, etc. The details of these programs and the related costs should be integral to the proposal. Your firm is invited to submit a written proposal outlining specific required services and the organization's ability and willingness to provide the services as described. B. Ownership Objectives The CDC has multiple objectives with regard to property that we expect to achieve in partnership with the managing agent: • Improve/Preserve physical asset to serve as affordable housing for the long-term. • Comply with all regulatory and fiscal requirements related to the property's financing. • Maintain a clean, well -maintained, physically appealing property. • Enhance the property's security and safety. • Bring new, needed resident services and programs, and increase resident participation. 4 • Manage the property within an agreed upon annual budget sufficient to maintain the property in the long-term and meet the property's financial obligations. 2. SCOPE OF SERVICES A. Property Management The management and operation of its 303 units senior housing development consists of several components involved in day today, weekly, monthly, quarterly, semi-annual, and annual operations. Units that are designed to accommodate both persons 62 years of age minimum, and persons with permanent disabilities, must be maintained as per the standards established, and often modified, by HUD. All applicants must income qualify (HUD low-income guidelines) prior to being accepted as tenants, and as such, must be proven to continue to be determined as eligible, qualified, bona fide residents of Kimball and Morgan Towers. The work to be accomplished includes all aspects of leasing, marketing, operation, and maintenance of the property, in addition to financial management and reporting. Scope of services must include the following provision for service: 1. The Contractor shall provide a trained, experienced, full time (40 hours per week) live- in resident manager, to be residing and maintaining full —time office hours on -site, and as necessitated by schedule or otherwise advised by the CDC, to provide at least one temporary or substitute resident manager to provide similar on -site office hours during the sustained (prolonged) absence of the permanent resident manager (due to illness, vacation or other excused absence), whose job duties include, but are not necessarily limited to, the following descriptions: a. The resident manager shall collect tenant rent due from all occupied units, provide proper notification to tenant delinquent with payments, maintain resident (tenant) files in a secure location, protecting privacy and confidentiality as per HUD standards. All resident files shall be subject to audit by agents of the CDC, agents acting on behalf of the CDC, agents of HUD programs or agents acting on behalf of HUD programs. b. Arranging, oversight of, and/or performance of the quarterly data submittal of tenant demographic and other information required by the current HUD reporting system. Employees at both residences will be employees of the Project Management Company. 3. PROPOSALS Candidates should have proven management expertise in the following areas: • HUD Section 8 Rental Assistance 5 • HUD Section 231 Housing Subsidy Program • Properties with senior resident services and programs The CDC proposes to award the contract on a basis of demonstrated qualification and experience in managing this scale of housing for functional elderly and disabled person. The CDC is seeking excellence in management of the buildings. Therefore, the award will be based on the thoroughness of the proposals, experience, and a reasonable cost to perform the management responsibilities. Management Overview — Responsibility of Management Company The Management Company is expected to perform those duties as articulated in the attached proposed form of Management Agreement. 4. SELECTION PROCESS Responses are due no later than February 29, 2012 at 4 p.m. The CDC will hold interviews with the top 2 — 4 prospective candidates on or about March 12-13, 2012. Final selection of a management company is expected to occur by April 17, 2012. Immediately after selection, the selected management company will begin working with the ownership team and current management company to transition property management responsibilities in a timely manner. The selected management company will develop operating budgets and management plans and will begin on -site property management on July 1, 2012. To apply, please send 5 copies, by 4 p.m. on February 29, 2012, of the following: 1. Responses to all questions in the "Questionnaire" (attached) 2. List of properties Currently Managed (senior and other subsidized properties) 3. The most recent completed audit 4. Standard sample financial and management reports, 5. Financial Proposal, and 6. Five references, at least 2 of which are owners of subsidized multi -family or senior housing. Submissions should be addressed to: Alfredo Ybarra, Manager Housing and Grants Division Administrative Services Department City of National City 1243 National City Boulevard National City, CA 91950 (619) 336-4279 After award of the Contract, proposers must provide a Management Entity Profile (HUD 9832), a Management Certification (HUD 9839-b), and a Previous Participation Certification (HUD 2530), which shall have been approved by HUD as a condition of the Contract. The Management Company selected by the CDC must prepare a unified management plan for CDC review and approval. Questions regarding this invitation of proposals should be directed to Alfredo Ybarra. 6 Morgan and Kimball Towers Property Management Company Questionnaire 1. How would you normally staff a property of this size and type? Please indicate whether staff would be shared with other properties. 2. Who does the on -site manager report to? What is your organizational structure? Describe the Proposals, location, and roles of non -site staff that will support or be assigned to this project. 3. What is the experience of your firm and assigned individuals in managing affordable senior housing, and specifically Section 8 and Section 231 subsidized housing? Please attach a list of properties currently managed, indicating where the property is located, the number of units managed, and whether the property is a Section 8, Section 231, tax credit or other form of subsidized property. 4. What is the experience of your firm and assigned individuals in managing properties in the San Diego area? 5. In your experience, how is managing an assisted property different from managing a market rate property? 6. Describe your experience in working with tenant associations or resident councils. 7. Describe your experience in managing properties undergoing significant "tenant in place" renovation and/or project expansion. For example, it is contemplated that this existing project could increase in size by 200 units. Morgan and Kimball towers would remain as existing in this potential scenario. 8. What kind of senior resident services have you implemented or been involved with at other properties? With a focus on senior tenants, what, if any, has been your role in assessing resident needs, developing or bringing appropriate programs to the site and coordinating with service providers? 9. What type of financial and management reports do you provide to owners (include sample)? Do you have any flexibility in formatting financial reports? 10. Do you have management, accounting and software systems in place to monitor and maintain compliance with federal programs? 11. Describe your experience/knowledge of Real Estate Assessment Center (REAC) policies and procedures for inspections of properties. 12. Please share any material concerns regarding the proposed form of Management Agreement. 7 City of National City Housing and Grants Division Administrative Services Department 1243 National City Boulevard National City CA 91950 Attention: Alfredo Ybarra, Manager SUBJECT: PROPOSAL FOR THE MANAGEMENT OF MORGAN TOWER AND KIMBALL TOWER (Name of Firm) Hereby submits a proposal to the management agent for Morgan/Kimball Towers with a financial proposal, as follows: I. MORGAN TOWER, 1415 `D' AVENUE, NATIONAL CITY, CA The dwelling units number 152, of which 151 units are for elderly and disabled person(s) of very low income and are under Section 8 Housing Assistance Payment Contracts. The remaining unit is for the Assistant Resident Manager. The Fee for the management of the units described herein is Percent ( %) of gross collection per month, or Dollars ($ ) per unit per month, whichever is less, for the one-year (1-yr.) term pursuant to the terms of the Management Agreement and to the Request for Proposals. II. KIMBALL TOWER, 1317 'D' AVENUE, NATIONAL CITY, CA The dwelling units number 151, of which 149 units are rental units for elderly and disabled persons (120 of which said units will be for persons of very low income) and two units are for the Resident Manager and Assistant Resident Manager. The Fee for the management of the units described herein is Percent ( %) of gross collection per month, or Dollars ($ ) per unit per month, whichever is less, for the one-year (1-yr.) term pursuant to the terms of the Management Agreement and to the Request for Proposals. III. In making this proposal, I have been furnished with and have considered the following: Community Development Commission Page Two A. The Public Notice B. The Request for Proposals C. The 2011— 2012 approved budget for each Morgan Tower and Kimball Tower. D. Sample Management Agreements, for Morgan Tower and Kimball Tower. IV. I understand that the successful proposer shall prepare a management plan within 30 days from the execution of the two (2) Management Agreements and the management plan shall be subject to review and approval by the City of National City. Such Management Plan for each of the two buildings and for the two buildings considered together, shall be a part of each of the two Management Agreements, as Exhibit "A", thereof. V. I understand that the Community Development Commission proposes to award the Management Agreement for both Kimball Tower and Morgan Tower to one management agent on the basis of the combination of (1) the best qualifications in terms of demonstrated ability to manage the number of units of housing for functional seniors and disabled persons and (2) a reasonable cost to perform the required services. Date By: Attachment to Request for Proposal for Kimball Tower and Morgan Tower Property Management Services Proposed form of Management Agreements 9 MORGAN TOWER MANAGEMENT AGREEMENT This Agreement is made this day of , 20_, between the Community Development Commission of the City of National City hereinafter referred to as "CDC" and , Inc. hereinafter referred to as "Contractor". 1. Definitions As used in this Agreement: a. "HUD" means the United States Department of Housing and Urban Development. b. "Secretary" means the Secretary of the United States Department of Housing and c. Urban Development. d. "Contractor" is e. A "Mortgage" is an instrument of an agreement between the Owner, as mortgagor, and the mortgagee, creating a lien on the Project as security for the payment of debt, which mortgage is insured by the United States Department of Housing and Urban Development. f. "Mortgagee" means any holder of the Mortgage. g. Community Development Commission of the City of National City ("CDC") is Owner. h. "Principal Parties" means the CDC and the Contractor. i. "Consenting Parties" means the Secretary and the Mortgagee. j. "Reimbursable Expense" means any expenditure incurred by the Contractor which shall be reimbursed to the Contractor from the Rental Agency Account. k. "Rental Agency Account" means the account described in Section 14. 2. Appointment and Acceptance. The CDC appoints the Contractor as exclusive representative for the management of the property described in Section 8 of this Agreement; and, the Contractor accepts the appointment, subject to the terms and conditions set forth in this Agreement 3. Independent Contractor. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint ventures with one another. This Agreement contemplates the personal services of the Contractor and the Contractor's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this Agreement was, and is, the professional reputation and competence of the Contractor and its employees. Neither this Agreement nor any interest herein may be assigned by the Contractor without the prior written consent of the CDC. Nothing herein contained is intended to prevent the Contractor from employing or hiring as many employees as the Contractor may deem necessary for the proper and efficient performance of this Agreement. Page 1 of 15 4. Control. Neither the CDC nor its officers, agents or employees shall have any control over the conduct of the Contractor or any of the Contractor's employees except as herein set forth, and the Contractor expressly agrees not to represent that the Contractor or the Contractor's agents, servants, or employees are in any manner agents, servants, and employees of the CDC, it being understood that the Contractor, its agents, servants, and employees are as to the CDC wholly independent contractors and that the Contractor's obligations to the CDC are solely such as are prescribed by this Agreement. 5. Contractor referred to as Agent. Not withstanding Contractor's status as an independent contractor, the parties acknowledge that in its dealings with agencies of the federal government, Contractor may from time to time be referred to as the "Agent" of the CDC. 6. Compliance with Applicable Law. The Contractor, in the performance of the services to be provided herein, shall comply with all State and Federal statutes and regulations, and all ordinances, rules and regulations of the City of National City whether now in force or subsequently enacted. The Contractor, and its subcontractors, shall obtain a current City of National City business license prior to performing any work within the City. 7. Non -Discrimination Provisions. The Contractor will not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The Contractor will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 8. Description of Project. This property ("Project") to be managed by the Contractor under this Agreement is a housing development consisting of the land, building, and other improvements that made up the Project further described as follows: Morgan Tower 1415 "D" Avenue City of National City, County of San Diego, State of California Consisting of 152 dwelling units 9. HUD Requirements. The project is subject to a mortgage which is insured by HUD under Section 231 of the National Housing Act and the CDC had entered into a Regulatory Agreement with the Secretary, whereby the CDC is obligated to provide for management of the project in a manner satisfactory to the Secretary. In addition, the CDC has entered into a Housing Assistance Payments Contract with the Secretary. The CDC has furnished the Page 2 of 15 Contractor with copies of the Regulatory Agreement and the Housing Assistance Payments Contract. In performing its duties under this Management Agreement, the Contractor will comply with all pertinent requirements of the Regulatory Agreement, the Housing Assistance Payment Contract, and the directives of the Secretary. In the event any instruction from the CDC is in contravention of such requirements, the latter will prevail. 10. Management Plan. Attached hereto as Exhibit "A" and incorporated herein, is a copy of the Management Plan for the Project, which provides a comprehensive and detailed description of the policies and procedures to be followed in the management of the Project. In many of its provisions, this Agreement briefly defines the nature of the Contractor's obligations, with the intention that reference be made to the Management Plan for more detailed policies and procedures. Accordingly, the CDC and the Contractor will comply with all applicable provisions of the Management Plan, regardless of whether specific reference is made thereto in any particular provision of this Agreement. 11 Basic Information. As soon as possible, the CDC will furnish the Agent with complete set of plans and specifications and copies of all guaranties and warranties pertinent to construction, fixtures, and equipment available to the CDC. With the aid of this information and through inspection by competent personnel, the Agent will thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Project, and especially the electrical, heating, plumbing, air-conditioning and ventilating systems, the elevators, and all other mechanical equipment. 12. Marketing. The Contractor will carry out the marketing activities prescribed in the Management Plan, observing all requirements of the Affirmative Marketing Plan. Advertising expenses will be paid out of the Rental Agency Account Reimbursable. 13. Rentals. The Contractor will offer for rent and will rent the dwelling units, and other rental facilities and concessions in the Project. Incident thereto, the following provisions will apply: a. The Contractor will follow the Tenant Selection Policy attached to the Management Plan. b. The Contractor will show the premises to prospective tenants. c. The Contractor will take and process applications for rentals. If an application is rejected, the applicant will be told the reason for rejection; and, the rejected application, with reason for rejection noted thereon, will be kept on file for one (1) year. A current list of prospective tenants will be maintained. d. The Contractor will prepare all dwelling leases and parking permits, and will execute the same in its name, identified thereon as representative for the CDC. The terms of all leases will comply with the pertinent provisions of the Regulatory Agreement, the Housing Assistance Payments Contract, and the directives of the Secretary. Dwelling Page 3 of 15 leases will be in a form approved by the CDC and the Secretary, but individual dwelling leases and parking permits need not be submitted for the approval of the CDC or the Secretary. e. The CDC will furnish the Contractor with rent schedules, as from time to time approved by the Secretary, showing fair -market rents, basic rents for dwelling units, and other charges for facilities and services. In no event will such fair -market rents and other charges be exceeded. Eligibility for dwelling rents that are less than such fair -market rents, and the amount of such lesser rents, will be determined in accordance with the Regulatory Agreement, the Housing Assistance Payments Contract, and the directives of the Secretary. f. The Contractor will counsel all prospective tenants regarding eligibility for dwelling rents that are less than fair market rents and will prepare and verify eligibility certifications and recertifications in accordance with the Regulatory Agreement, the Housing Assistance Payments Contract, and the directives of the Secretary. The Contractor will collect, deposit, and disburse security deposits, if required, in accordance with the terms of each tenant's lease. The amount of each security deposit will be as specified in the Management Plan. Security deposits will be deposited by the Contractor in an account, separate from all other accounts and funds, with a bank or other financial institution whose deposits are insured by an agency of the United States Government. This account will be carried in the CDC's name and designated of record as "Morgan Tower Security Deposit Account". 14. Collection of Rents and other Receipts. The Contractor will collect when due all rents, charges and other amounts receivable on the CDC's account in connection with the management and operation of the Project. Such receipts (except tenant's security deposits, which will be handled as specified in Subsection 13(g) above) will be deposited in an account, separate from all other accounts and funds, with a bank whose deposits are insured by the Federal Deposit Corporation. This account will be carried in the CDC's name and designated of record as "Morgan Tower Rental Agency Account". 15. Enforcement of Leases. The Contractor will secure full compliance by each tenant with the terms of the lease. Voluntary compliance will be emphasized; and, the Contractor, utilizing the services of the Social Services Director when available, will counsel tenants and make referrals to community agencies in cases of financial hardship or under other circumstances deemed appropriate by the Contractor, to the end that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Project. Nevertheless, and subject to the pertinent procedures prescribed in the Management Plan, the Contractor may lawfully terminate any tenancy when, in the contractor's judgment, sufficient cause (including, but not limited to, non-payment of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the contractor is authorized to consult with legal counsel to be designated by the CDC, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions; provided, however, the g. Page 4 of 15 Contractor keeps the CDC informed of such actions and follows such instructions as the CDC's written approval, attorney fees and other necessary costs incurred in connection with such actions will be paid out of the Rental Agency Account as Project Expenses. 16. Maintenance and Repair. The Contractor will maintain the Project in good repair in accordance with the Management Plan and local codes, and in a condition at all times acceptable to the CDC and the Secretary, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may be necessary, subject to any limitations imposed by the CDC in addition to those contained herein. Incident thereto, the following provisions will apply: a. Special attention will be given to preventative maintenance and, to the greatest extent feasible, the services of regular maintenance employees will be used. b. Subject to the CDC's prior written approval, the Contractor will contract with qualified independent contractors for the maintenance and repair of HVAC systems and elevators, and for extraordinary repairs beyond the capability of regular maintenance employees. c. The Contractor will systematically and promptly receive and investigate all service requests from tenants, take such action thereon as may be justified and will keep records of the same. Emergency requests will be received and serviced on a twenty- four (24) hour basis. Complaints of a serious nature will be reported to the CDC in writing after investigation, within twenty-four (24) hours. d. The Contractor is authorized to purchase all materials, equipment, tools, appliances, supplies and services necessary to proper maintenance and repair. e. Notwithstanding any of the foregoing provisions, the prior approval of the CDC will be required for any expenditure which exceeds Five Thousand Dollars ($5,000) in any one instance for labor, materials, or otherwise in connection with the maintenance and repair of the Project, except for emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the Project. In the latter event, the Contractor will inform the CDC of the facts as promptly as possible. 17. Utilities and Services. The Contractor will make contracts as may be necessary to secure utilities and services. 18. Employees. The Management Plan prescribes the number, qualifications and duties of the personnel to be regularly employed in the management of the Project, including a Resident Manager, a Social Services Director, and maintenance, bookkeeping, clerical, and Page 5of15 other managerial employees. All such on -site personnel are employees of the Contractor and not of the CDC. a. As more particularly described in the Management Plan, the Resident Manager will have duties of the type usually associated with the position; and, the Social Services Director will be responsible for the conduct of the social services program for the Project. Each will be directly responsible to the Contractor's Project Manager or other officer, and neither will have authority to supervise or discharge the other. b. The compensation (including fringe benefits) of all employees will be as prescribed in the Management Plan. Compensation will be within the Contractor's sole discretion, provided minimum wage standards are met. c. Compensation (including fringe benefits) payable to the on -site management and maintenance employees, as prescribed in the Management Plan, and for all local, state, and Federal taxes and assessments (including but not limited to Social Security taxes, unemployment insurance, and workman's compensation insurance) incident to the employment of such personnel will be paid out of the Rental Agency Account and will be treated as Reimbursable Expenses. d. Compensation (including fringe benefits) payable to all personnel, plus all local, state, and Federal taxes and assessments incidents to the employment of such personnel will be Reimbursable Expenses, and will not be paid out of the Contractor's fee. The rental value of any dwelling unit, furnished rent-free to the staff, will be treated as a cost to the Project. 19. Disbursements from Rental Agency Account. a. From the funds collected and deposited by the contractor in the Rental Agency Account pursuant to Section 14 above, the Contractor will make the following disbursements promptly when payable: 1. Reimbursement of the Contractor for compensation payable to the employees specified in Subsection 18(c) and (d) above, and for the taxes and assessments payable to local, state, and Federal governments in connection with the employment of such personnel. 2. The single -aggregate payment required to be made monthly by the CDC to the Mortgagee, including the amounts due under the mortgage for principal amortization, interest, mortgage insurance premium, ground rents, taxes and assessments, fire and other hazard insurance premiums, and the amount specified by HUD for allocation to the Reserve for Replacements. 3. All sums otherwise due and payable by the CDC as expenses of the Project authorized to be incurred by the Contractor under the terms of this Page 6 of 15 Agreement, including compensation payable to the Agent, pursuant to Section 32 below, for its service hereunder. b. Except for the disbursements mentioned in Subsection 19(a) above, funds will be disbursed or transferred from the Rental Agency Account only as the CDC may from time to time direct in writing. c. In the event the balance in the Rental Agency Account is at any time insufficient to pay disbursements due and payable under Subsection 19(a) above, the Contractor will inform the CDC of that fact and CDC will then remit to the Contractor sufficient funds to cover the deficiency. 20. Budgets. Annual operating budgets for the Project will be as approved by the CDC. Except as permitted under Subsection 16(e) above, annual disbursements for each type of operating expense itemized in the budget will not exceed by more than ten percent (10%) the amount authorized by the approved budget. The Contractor will prepare a recommended operating budget for each fiscal year beginning during the term of this Agreement, and will submit the same to the CDC at least thirty (30) days before the beginning of the fiscal year. The CDC will promptly inform the Contractor of any changes incorporated in the approved budget, and the Agent will keep the CDC informed of any anticipated deviation from the receipts or disbursements stated in the approved budget. 21. Records and Reports. In addition to any requirements specified in the Management Plan or in other provisions of this Agreement, the Contractor will have the following responsibilities with respect to records and reports. a. The Contractor will establish and maintain a comprehensive system of records, books, and accounts in a manner conforming to the directives of the Secretary, and otherwise satisfactory to the CDC and the Consenting Parties. All records, books, and accounts will be subject to examination at reasonable hours by any authorized representative of the CDC or either of the Consenting Parties. b. With respect to each fiscal year ending during the term of this Agreement, the contractor will have an annual financial report, prepared by a Certified Public Accountant or other person acceptable to the CDC and Secretary, based upon the preparer's examination of the books and records of the CDC and the Contractor. The report will be prepared in accordance with the directives of the Secretary, will be certified by the preparer and the Contractor, and will be submitted to the CDC within sixty (60) days after the end of the fiscal year, for the CDC's further certification and submission to the Secretary and the Mortgagee. Compensation for the preparer's services will be paid out of the Rental Agency Account as Reimbursable Expense. c. Contractor will prepare a monthly report comparing actual and budgeted figures for receipts and disbursements and will submit each such report to the CDC within fifteen (15) days after the end of the quarter covered. Page 7 of 15 g. d. The Contractor will furnish such information (including occupancy reports) as may be requested by the CDC from time to time with respect to the financial, physical, or operational condition of the Project. e. The Contractor will prepare, on a monthly basis, Form HUD-52670, Housing Contractor's Certification for Housing Assistance Payments and Form HUD- 52670A, New Construction and Substantial Rehabilitation Schedule of Housing Assistance Payments, and will submit the same to the appropriate Area or Insuring Office of the Department of Housing and Urban Development. Such payments will be deposited to the Rental Agency Account. f. By the fifteenth (15th) day of each month, the Contractor will furnish the CDC with an itemized list of all delinquent accounts, including rental accounts, as the tenth (10th) day of the same month. By the fifteenth (15th) day of each month, the Contractor will furnish the CDC with a statement of receipts and disbursements during the previous month, and with a schedule of accounts receivable and payable, and reconciled bank statements for the Rental Agency Account and Deposit Account, upon request, as of the end of the previous month. h. If the Project does not sustain a 95% occupancy, and the rental collections plus HUD subsidy fall below operating expenses for a sustained period of sixty (60) days, the Contractor will immediately send written notification of the same to the appropriate HUD Area/Insuring Office, copying the CDC. Except as otherwise provided in this Agreement, all off -site bookkeeping, not clerical, and other management overhead expenses (including but not limited to costs of office supplies and equipment, data processing services, transportation for managerial personnel, and telephone services) will be borne by the Contractor out of its own funds and will not be treated as Reimbursable Expense. 22. Dishonesty Bonds. The Contractor will furnish, at its own expense, a dishonesty bond in the principal sum of Two Hundred and Fifty Thousand Dollars ($250,000), which is at least equal to the gross potential income for two (2) months and is conditioned to protect the CDC and the Consenting Parties against misappropriation of Project funds by the Contractor and its employees. 23. Bids and Purchase Discounts, Rebates and Commissions. The CDC and Contractor agree to obtain contract materials, supplies and services at the lowest possible cost and on the terms most advantageous to the Project and to secure and credit to the Project all discounts, rebates or commissions obtainable with respect to purchases, service contracts and other transactions on behalf of the Project. The CDC and the Contractor agree that all goods and services purchased from individuals or companies having an identity of interest with the CDC or Page 8 of 15 Contractor shall be purchased at costs not in excess of those that would be incurred in making arms -length purchases on the open market. The Contractor shall solicit written estimates (Le., bids) from at least three (3) contractors or suppliers for any work item defined as a "Public Project" under Section 20161 of the California Public Contract Code which the CDC or the Director estimates will cost $5,000 or more. The Contractor agrees to accept the bid which represents the lowest price, taking into consideration the bidder's reputation for quality of workmanship or materials, timely performance and the time frame within which the service or goods are needed. For any contract or on -going supply or service arrangement obtainable from more than one source and estimated to cost less than $15,000, the Contractor shall solicit written cost estimates, as necessary, to assure that the Project is obtaining services, supplies and purchases at the lowest possible cost. Copies of all required bids and documentation of all other written or verbal cost comparisons made by the Contractor shall be made part of the Project's records and shall be retained for three (3) years from the date the work was completed. This documentation shall be subject to inspection by the Secretary or his/her designee and the Contractor agrees to submit such documentation upon request. The Contractor further agrees to include the following clause in any contract entered into with an identity -of -interest firm for provision of goods or services to the Project, the cost of which services are to be Reimbursable Expenses: "Upon request by the CDC/Contractor or the Secretary, (name of contractor or supplier) will make available to the Secretary at a reasonable time and place; (name of contractor or supplier's) records which relate to goods or services provided to the Project." The Contractor agrees to request such records from the contractor or supplier within seven (7) days of receipt of a written request from the CDC. 24. Social Service Program. The Contractor will be responsible to the CDC for carrying out the social services program described in the Management Plan. 25. Tenant -Management Relations. The Contractor will encourage and assist residents of the Project in forming and maintaining representative organizations to promote their common interests, and will maintain good -faith communication with such organizations to the end that problems affecting the Project and its residents may be avoided or solved on the basis of mutual self-interest. 26. On -Site Management Facilities. Subject to the further agreement of the CDC and Contractor as to more specific terms, the Contractor will maintain a management office at the adjacent Kimball Tower; and, staff (Note: The staff may be the same for Kimball Tower) will reside in several of the dwelling units in the Project; and the CDC will make no rental charge for the same. 27. Insurance. The CDC will inform the Contractor of insurance over and above what is required in Section 30 of this Agreement to be carried with respect to the Project and its operations, and the Agent will cause such insurance to be placed and kept in effect at all times. The Contractor will pay premiums out of the Rental Agency Account, and premiums Page 9 of 15 will be treated as operating expenses. All insurance will be placed with such companies, on such conditions, in such amounts, and with such beneficial interests appearing thereon as shall be acceptable to the CDC and Consenting Parties. The Contractor will investigate and furnish the Owner with full reports as to all accidents, claims, and potential claims for damage relating to the Project, and will cooperate with the CDC's insurers in connection therewith. 28. Hold Harmless. The Contractor agrees to indemnify, defend, and hold harmless the CDC, its officers, employees and volunteers, against and from any and all liability, loss, damage to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, in any way resulting from or arising out of the Contractor's performance of this Agreement. 29. Workers' Compensation. The Contractor shall comply with all of the provisions of the Worker's Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the CDC and its officers, employees and volunteers from any against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against the CDC or its officers, employees, volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the Contractor under this Agreement. 30. Insurance. The Contractor shall purchase and maintain, throughout the term of this agreement, the following insurance policies. Items b and c to be reimbursed from the Rental Agency Account. a. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $500,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. b. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Agreement. c. Workers' compensation insurance covering all of its employees and volunteers. d. The aforesaid policies shall, with respect to Morgan Tower, constitute primary insurance as to the CDC, its officers, employees, and volunteers, so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. Page 10 of 15 e. Said policies, except for worker's compensation, shall name the CDC and its officers, agents and employees as additional insureds. f. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been compiled with, are filed with and approved by the CDC/City's Risk Manager. If the Contractor does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. g. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the Contractor shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. h. Any aggregate insurance limits must apply solely to this Agreement. 31. Compliance with Government Orders. The Contractor will take such actions as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Project, whether imposed by Federal, State, County or Municipal authority (subject, however, to the limitation stated in Subsection I6(e) with respect to repairs.) Nevertheless, the Contractor shall take no such action so long as the CDC is contesting, or has affirmed its intention to contest, any such order or requirements. The Contractor will notify the CDC in writing of all notices of such orders or other requirements, within seventy- two (72) hours from the time of receipt. 32. Contractor's Compensation. The Contractor will be compensated for its services under this Agreement by monthly fees, in accordance with HUD procedures, to be paid out of the Rental Agency Account. Such fees will be payable on the last day of each month beginning July, 2012, until terminated. a. Each such monthly fee will be in an amount equal to xxxx percent (0.00%) of gross collections received during the preceding month. Gross collections include rental income, Housing Assistance Payments, and income from other sources such as coin - operated laundry equipment. b. The percentage fee stipulated in Section 31(a) may be increased by xxxxx of xxx percent (xx%) (Example: a fee of x% of gross collections could be increased to xx%) on the annual anniversary date of this Agreement if HUD approves the CDC's written request, based upon its determination that the Contractor's performance has been of superior quality. Such requests are not automatically approved and may not be implemented without written authorization from the HUD Area/Insuring office having jurisdiction over the Project mortgage. Page 11 of 15 33. Term of Agreement. This Agreement shall be in effect for a period of twelve (12) months. This Agreement is subject to the following conditions: a. At the sole discretion of the City Manager, this agreement may be extended by two, two- year extensions (for a maximum of five years). b. This Agreement may be terminated with or without cause by the City. Termination without cause shall be effective only upon 60-day written notice to the Contractor. During said 60-day period, the Contractor shall perform all services in accordance with this Agreement. c. This Agreement may also be terminated immediately by the City for cause in the event of a material breach of this Agreement, misrepresentation by the Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the City. d. In the event a petition in bankruptcy is filed by or against either of the Principal Parties, or in the event either makes an assignment for the benefit of creditors or takes advantage of any involvency act, the other party may terminate this Agreement upon ten (10) days notice to the other. e. Upon termination, any cash will be immediately turned over to the CDC. In addition, the Contractor will submit to the CDC any financial statements required and, after each has accounted to the other with respect to all matters outstanding as of the date of termination, the CDC will furnish the Contractor security, in form and principal amount satisfactory to the Contractor, against any obligations or liabilities the Contractor may properly have incurred on behalf of the CDC hereunder. f. Termination with or without cause shall be effected by delivery of written Notice of Termination to the Contractor as provided for herein. 34. Other Consideration. Nothing contained herein shall prevent the Contractor from carrying on its usual business, including the performance of other additional services for the CDC, should the CDC desire additional services, nor from performing similar services for other agencies, cities, districts or public or private entities. 35. Legal Fees. If any party brings a suit or action against the other party arising from any breach of contract of any covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in the event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from other party all costs and expenses of suit, including actual attorney's fees. 36. Mediation/Arbitration. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Page 12 of 15 Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA as they exist. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorney's fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 37. Termination for Default. All of the terms, conditions, and covenants of this Agreement are considered material and in the event the Contractor breaches or defaults in the performance of any such terms, conditions, or covenants which are to be kept, done, or performed by it, the CDC may give the Contractor fifteen (15) days' written notice setting forth such breach of default; and if the Contractor fails, neglects or refuses for a period of more than fifteen (15) days thereafter to remedy, make good, or perform such breach or default, the CDC, without further notice, may cancel this Agreement. 38. Notices. All Notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days if the address is outside the State of California, after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CDC: Leslie Deese, Assistant City Manager Community Development Commission of the City of National City 1243 National City Boulevard, National City, CA 91950 To Contractor: Page 13 of 15 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to delivery because of changed address of which no notice was given shall be deemed to constitute receipt of notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy or facsimile must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 39. Miscellaneous Provisions. a. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or Federal, or State or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, State or legal holiday. b. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. c. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement of any provision hereof. d. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. e. Exhibits and Schedules. The Exhibits and Schedules attached hereto as hereby incorporated herein by this reference for all purposes. f. Amendment to this Agreement. The terms of this Agreement may not be modified or amended expect by an instrument in writing executed by each of the parties hereto. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision of any provision hereof. g. h. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. i. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or Page 14 of 15 promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. j. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. k. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party as actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the Principal Parties, by their duly authorized officers, have executed this Agreement on the date first above written. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By APPROVED AS TO FORM: Claudia Gacitua Silva, City Attorney By: , President By: Attachment: Exhibit "A" - Management Plan Page 15 of 15 KIMBALL TOWER MANAGEMENT AGREEMENT This Agreement is made this day of , 2012, between the Community Development Commission of the City of National City (owner) hereinafter referred to as "CDC" and , Inc. hereinafter referred to as "Contractor". 1. Definitions As used in this Agreement: a. "Contractor" is , Inc.. b. Community Development Commission of the City of National City ("CDC") is Owner. c. "Principal Parties" means the CDC and the Contractor. d. "Consenting Parties" means the Secretary and the Mortgagee. e. "Reimbursable Expense" means any expenditure incurred by the Contractor, which shall be reimbursed to the Contractor from the Rental Agency Account. f. "Rental Agency Account" means the account described in Section 13. 2. Appointment and Acceptance. The CDC appoints the Contractor as exclusive representative for the management of the property described in Section 8 of this Agreement; and, the Contractor accepts the appointment, subject to the terms and conditions set forth in this Agreement 3. Independent Contractor. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint ventures with one another. This Agreement contemplates the personal services of the Contractor and the Contractor's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this Agreement was, and is, the professional reputation and competence of the Contractor and its employees. Neither this Agreement nor any interest herein may be assigned by the Contractor without the prior written consent of the CDC. Nothing herein contained is intended to prevent the Contractor from employing or hiring as many employees as the Contractor may deem necessary for the proper and efficient performance of this Agreement. 4. Control. Neither the CDC nor its officers, agents or employees shall have any control over the conduct of the Contractor or any of the Contractor's employees except as herein set forth, and the Contractor expressly agrees not to represent that the Contractor or the Contractor's agents, servants, or employees are in any manner agents, servants, and employees of the CDC, it being understood that the Contractor, its agents, servants, and employees are as to the CDC wholly independent contractors and that the Contractor's obligations to the CDC are solely such as are prescribed by this Agreement. Page 1 of 14 5. Contractor referred to as Agent. Not withstanding Contractor's status as an independent contractor, the parties acknowledge that in its dealings with agencies of the federal government, Contractor may from time to time be referred to as the "Agent" of the CDC 6. Compliance with Applicable Law. The Contractor, in the performance of the services to be provided herein, shall comply with all State and Federal statutes and regulations, and all ordinances, rules and regulations of the City of National City whether now in force or subsequently enacted. The Contractor, and its subcontractors, shall obtain a current City of National City business license prior to performing any work within the City. 7. Non -Discrimination Provisions. The Contractor will not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The Contractor will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 8. Description of Proj ect. This property ("Project") to be managed by the Contractor under this Agreement is a housing development consisting of the land, building, and other improvements that made up the Project further described as follows: Kimball Tower 1317 "D" Avenue City of National City, County of San Diego, State of California Consisting of 151 dwelling units 9. Management Plan. Attached hereto as Exhibit "A" and incorporated herein, is a copy of the Management Plan for the Project, which provides a comprehensive and detailed description of the policies and procedures to be followed in the management of the Project. In many of its provisions, this Agreement briefly defines the nature of the Contractor's obligations, with the intention that reference be made to the Management Plan for more detailed policies and procedures. Accordingly, the CDC and the Contractor will comply with all applicable provisions of the Management Plan, regardless of whether specific reference is made thereto in any particular provision of this Agreement. 10_ Basic Information. As soon as possible, the CDC will furnish the Agent with complete set of plans and specifications and copies of all guaranties and warranties pertinent to construction, fixtures, and equipment. With the aid of this information and through Page 2 of 14 inspection by competent personnel, the Agent will thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Project, and especially the electrical, heating, plumbing, air-conditioning and ventilating systems, the elevators, and all other mechanical equipment. 11. Marketing. The Contractor will carry out the marketing activities prescribed in the Management Plan, observing all requirements of the Affirmative Marketing Plan. Advertising expenses will be paid out of the Rental Agency Account as Project expenses. 12. Rentals. The Contractor will offer for rent and will rent the dwelling units, and other rental facilities and concessions in the Project. Incident thereto, the following provisions will apply: a. The Contractor will follow the Tenant Selection Policy attached to the Management Plan. b. The Contractor will show the premises to prospective tenants. c. The Contractor will take and process applications for rentals. If an application is rejected, the applicant will be told the reason for rejection; and, the rejected application, with reason for rejection noted thereon, will be kept on file for one (1) year. A current list of prospective tenants will be maintained. d. The Contractor will prepare all dwelling leases and parking permits, and will execute the same in its name, identified thereon as representative for the CDC. Dwelling leases will be in a form approved by the CDC, but individual dwelling leases and parking permits need not be submitted for the approval of the CDC or the Secretary. e. The CDC will furnish the Contractor with rent schedules, as from time to time approved by the Secretary, showing fair -market rents, basic rents for dwelling units, and other charges for facilities and services. In no event will such fair -market rents and other charges be exceeded. Eligibility for dwelling rents that are less than such fair -market rents, and the amount of such lesser rents, will be determined in accordance with the requirements established by the CDC. f The Contractor will counsel all prospective tenants regarding eligibility for dwelling rents that are less than fair market rents and will prepare and verify eligibility certifications and recertifications in accordance with the requirements established by the CDC. g. The Contractor will collect, deposit, and disburse security deposits, if required, in accordance with the terms of each tenant's lease. The amount of each security deposit will be as specified in the Management Plan. Security deposits will be deposited by the Contractor in an account, separate from all other accounts and funds, with a bank or other financial institution whose deposits are insured by an agency of Page 3 of 14 the United States Government. This account will be carried in the CDC's name and designated of record as "Kimball Tower Security Deposit Account". 13. Collection of Rents and other Receipts. The Contractor will collect when due all rents, charges and other amounts receivable on the CDC's account in connection with the management and operation of the Project. Such receipts (except tenant's security deposits, which will be handled as specified in Subsection 12(g) above) will be deposited in an account, separate from all other accounts and funds, with a bank whose deposits are insured by the Federal Deposit Corporation. This account will be carried in the CDC's name and designated of record as "Kimball Tower Rental Agency Account". 14. Enforcement of Leases. The Contractor will secure full compliance by each tenant with the terms of the lease. Voluntary compliance will be emphasized; and, the Contractor, utilizing the services of the Social Services Director when available, will counsel tenants and make referrals to community agencies in cases of financial hardship or under other circumstances deemed appropriate by the Contractor, to the end that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Project. Nevertheless, and subject to the pertinent procedures prescribed in the Management Plan, the Contractor may lawfully terminate any tenancy when, in the contractor's judgment, sufficient cause (including, but not limited to, non-payment of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the contractor is authorized to consult with legal counsel to be designated by the CDC, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions; provided, however, the Contractor keeps the CDC informed of such actions and follows such instructions as the CDC's written approval, attorney fees and other necessary costs incurred in connection with such actions will be paid out of the Rental Agency Account as Project Expenses. 15. Maintenance and Repair. The Contractor will maintain the Project in good repair in accordance with the Management Plan and local codes, and in a condition at all times acceptable to the CDC, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may be necessary, subject to any limitations imposed by the CDC in addition to those contained herein. Incident thereto, the following provisions will apply: a. Special attention will be given to preventative maintenance and, to the greatest extent feasible, the services of regular maintenance employees will be used. b. Subject to the CDC's prior written approval, the Contractor will contract with qualified independent contractors for the maintenance and repair of HVAC systems and elevators, and for extraordinary repairs beyond the capability of regular maintenance employees. c. The Contractor will systematically and promptly receive and investigate all service requests from tenants, take such action thereon as may be justified and will keep Page 4 of 14 records of the same. Emergency requests will be received and serviced on a twenty- four (24) hour basis. Complaints of a serious nature will be reported to the CDC in writing after investigation, within twenty-four (24) hours. d. The Contractor is authorized to purchase all materials, equipment, tools, appliances, supplies and services necessary to proper maintenance and repair. e. Notwithstanding any of the foregoing provisions, the prior approval of the CDC will be required for any expenditure which exceeds Five Thousand Dollars ($5,000) in any one instance for labor, materials, or otherwise in connection with the maintenance and repair of the Project, except emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the Project. In the latter event, the Contractor will inform the CDC of the facts as promptly as possible. 16. Utilities and Services. The Contractor will make contracts as may be necessary to secure utilities and services. 17. Employees. The Management Plan prescribes the number, qualifications and duties of the personnel to be regularly employed in the management of the Project, including a Resident Manger, a Social Services Director, and maintenance, bookkeeping, clerical, and other managerial employees. All such on -site personnel will be employees of the Contractor and not of the CDC. a. As more particularly described in the Management Plan, the Resident Manager will have duties of the type usually associated with the position; and, the Social Services Director will be responsible for the conduct of the social services program for the Project. Each will be directly responsible to the Contractor's Project Manager or other officer, and neither will have authority to supervise or discharge the other. b. The compensation (including fringe benefits) of all employees will be as prescribed in the Management Plan and within the Contractor's sole discretion, provided minimum wage standards are met. c. Compensation (including fringe benefits) payable to the on -site management and maintenance employees, as prescribed in the Management Plan, and for all local, state, and Federal taxes and assessments (including but not limited to Social Security taxes, unemployment insurance, and workman's compensation insurance) incident to the employment of such personnel will be paid out of the Rental Agency Account and will be treated as Reimbursable Expenses. d. Compensation (including fringe benefits) payable to all personnel, plus all local, state, and Federal taxes and assessments incidents to the employment of such personnel will be Reimbursable Expenses, and will not be paid out of the Page 5 of 14 Contractor's fee. The rental value of any dwelling unit, furnished rent-free to the staff, will be treated as a cost to the Project. 18. Disbursements from Rental Agency Account. a. From the funds collected and deposited by the contractor in the Rental Agency Account pursuant to Section 13 above, the Contractor will make the following disbursements promptly when payable: i. Reimbursement of the Contractor for compensation payable to the employees specified in Subsection 17(c) and (d) above, and for the taxes and assessments payable to local, state, and Federal governments in connection with the employment of such personnel. ii. All sums otherwise due and payable by the CDC as expenses of the Project authorized to be incurred by the Contractor under the terms of this Agreement, including compensation payable to the Agent, pursuant to Section 30 below, for its service hereunder. b. Except for the disbursements mentioned in Subsection 18(a) above, funds will be disbursed or transferred from the Rental Agency Account only as the CDC may from time to time direct in writing. c. In the event the balance in the Rental Agency Account is at any time insufficient to pay disbursements due and payable under Subsection 18(a) above, the Contractor will inform the CDC of that fact and CDC will then remit to the Contractor sufficient funds to cover the deficiency. 19. Budgets. Annual operating budgets for the Project will be as approved by the CDC. Except as permitted under Subsection 15(e) above, annual disbursements for each type of operating expenses itemized in the budget will not exceed the amount authorized by the approved budget. The Contractor will prepare a recommended operating budget for each fiscal year beginning during the term of this Agreement, and will submit the same to the CDC at least thirty (30) days before the beginning of the fiscal year. The CDC will promptly inform the Contractor of any changes incorporated in the approved budget, and the Agent will keep the CDC informed of any anticipated deviation from the receipts or disbursements stated in the approved budget. 20. Records and Reports. In addition to any requirements specified in the Management Plan or in other provisions of this Agreement, the Contractor will have the following responsibilities with respect to records and reports. a. The Contractor will establish and maintain a comprehensive system of records, books, and accounts in a manner conforming to the directives of the Secretary, and otherwise satisfactory to the CDC and the Consenting Parties. All records, books, Page 6 of 14 and accounts will be subject to examination at reasonable hours by any authorized representative of the CDC or either of the Consenting Parties. b. With respect to each fiscal year ending during the term of this Agreement, the contractor will have an annual financial report, prepared by a Certified Public Accountant or other person acceptable to the CDC, based upon the preparer's examination of the books and records of the CDC and the Contractor. The report will be prepared in accordance with the directives of the CDC, will be certified by the preparer and the Contractor, and will be submitted to the CDC within sixty (60) days after the end of the fiscal year, for the CDC's further certification and submission to the Secretary and the Mortgagee. Compensation for the preparer's services will be paid out of the Rental Agency Account as a Reimbursable Expense of the Project. c. The Contractor will prepare a monthly report comparing actual and budgeted figures for receipts and disbursements and will submit each such report to the CDC within fifteen (15) days after the end of the quarter covered. d. The Contractor will furnish such information (including occupancy reports) as may be requested by the CDC from time to time with respect to the financial, physical, or operational condition of the Project. e. By the fifteenth (15th) day of each month, the Contractor will furnish the CDC with an itemized list of all delinquent accounts, including rental accounts, as the tenth (l Oth) day of the same month. f. By the fifteenth (15th) day of each month, the Contractor will furnish the CDC with a statement of receipts and disbursements during the previous month, and with a schedule of accounts receivable and payable; and reconciled bank statements for the Rental Agency Account and Deposit Account upon request as of the end of the previous month. Except as otherwise provided in this Agreement, all off -site bookkeeping, not clerical, and other management overhead expenses (including but not limited to costs of office supplies and equipment, data processing services, postage, transportation for managerial personnel, and telephone services) will be borne by the Contractor out of their own funds and will not be treated as Reimbursable Expenses. g. 21. Dishonesty Bonds. The Contractor will furnish, at its own expense, a dishonesty bond in the principal sum of Two Hundred Fifty Thousand Dollars ($250,000), which is at least equal to the gross potential income for two (2) months and is conditioned to protect the CDC and the Consenting Parties against misappropriation of Project funds by the Contractor and its employees. Page 7 of 14 22. Bids and Purchase Discounts, Rebates and Commissions. The CDC and Contractor agree to obtain contract materials, supplies and services at the lowest possible cost and on the terms most advantageous to the Project and to secure and credit to the Project all discounts, rebates or commissions obtainable with respect to purchases, service contracts and other transactions on behalf of the Project. The CDC and the Contractor agree that all goods and services purchased from individuals or companies having an identity of interest with the CDC, or Contractor shall be purchased at costs not in excess of those that would be incurred in making arms -length purchases on the open market. The Contractor shall solicit written estimates (i.e., bids) from at least three (3) contractors or suppliers for any work item which the CDC or the Director estimates will cost $5,000 or more and for any contract or on -going supply or service arrangement (except for utilities) which is estimated to exceed $15,000 per year. The Contractor agrees to accept the bid which represents the lowest price, taking into consideration the bidder's reputation for quality of workmanship or materials, timely performance and the time frame within which the service or goods are needed. For any contract or on -going supply or service arrangement obtainable from more than one source and estimated to cost less than $15,000, the Contractor shall solicit written cost estimates, as necessary, to assure that the Project is obtaining services, supplies and purchases at the lowest possible cost. Copies of all required bids and documentation of all other written or verbal cost comparisons made by the Contractor shall be made part of the Project's records and shall be retained for three (3) years from the date the work was completed. This documentation shall be subject to inspection by the CDC and the Contractor agrees to submit such documentation upon request. The Contractor further agrees to include the following clause in any contract entered into with an identity -of -interest firm for provision of goods or services to the Project, the cost of which services are to be Reimbursable Expenses: "Upon request by the CDC/Contractor, (name of contractor or supplier) will make available to the CDC at a reasonable time and place; (name of contractor or supplier's) records which relate to goods or services provided to the Project" The Contractor agrees to request such records from the contractor or supplier within seven (7) days of receipt of a written request from the CDC. 23. Social Service Program. The Contractor will be responsible to the CDC for carrying out the social services program described in the Management Plan. 24. Tenant -Management Relations. The Contractor will encourage and assist residents of the Project in forming and maintaining representative organizations to promote their common interests, and will maintain good -faith communication with such organizations to the end that problems affecting the Project and its residents may be avoided or solved on the basis of mutual self-interest. 25. On -Site Management Facilities. Subject to the further agreement of the CDC and Contractor as to more specific terms, the Contractor will maintain a management office within the Project and staff will reside in several of the dwelling units in the Project, and the Owner will make no rental charge for the same. (Note: The staff may be the same for Morgan Tower. Page 8 of 14 26. Hold Harmless. The Contractor agrees to indemnify, defend, and hold harmless the CDC, its officers, employees and volunteers, against and from any and all liability, loss, damage to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, in any way resulting from or arising out of the Contractor's performance of this Agreement. 27. Workers' Compensation. The Contractor shall comply with all of the provisions of the Worker's Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the CDC and its officers, employees and volunteers from any against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against the CDC or its officers, employees, volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the Contractor under this Agreement. 28. Insurance. The Contractor shall purchase and maintain, throughout the term of this agreement, the following insurance policies. Only items b and c to be reimbursed from Rental Agency Account. a. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $500,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. b. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Agreement. c. Workers' compensation insurance covering all of its employees and volunteers. d. The aforesaid policies shall, with respect to Kimball Tower, constitute primary insurance as to the CDC, its officers, employees, and volunteers, so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. e. Said policies, except for worker's compensation, shall name the CDC and its officers, agents and employees as additional insureds. f. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been compiled with, are filed with and approved by Page 9 of 14 g• the CDC/City's Risk Manager. If the Contractor does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the Contractor shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. h. Any aggregate insurance limits must apply solely to this Agreement. 29. Compliance with Government Orders. The Contractor will take such actions as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Project, whether imposed by Federal, State, County or Municipal authority, subject, however, to the limitation stated in Subsection 15(e) with respect to repairs. Nevertheless, the Contractor shall take no such action so Iong as the CDC is contesting, or has affirmed its intention to contest, any such order or requirements. The Contractor will notify the CDC in writing of all notices of such orders or other requirements, within seventy- two (72) hours from the time of receipt. 30. Contractor's Compensation. The Contractor will be compensated for its services under this Agreement by monthly fees, in accordance with HUD procedures, to be paid out of the Rental Agency Account. Such fees will be payable on the last day of each month beginning July 1, 2012, until terminated. a. Each such monthly fee will be in an amount equal to xx percent (0%) of gross collections received during the preceding. Gross collections include rental income, Housing Assistance Payments, and income from other sources such as coin -operated laundry equipment. b. The percentage fee stipulated in Section 30(a) may be increased by X percent (X%) (example: a fee of x% of gross collections could be increased to x%) on the annual anniversary date of this Agreement with CDC approval. 31. Term of Agreement. This Agreement shall be in effect for a period of twelve (12) months. This Agreement is subject to the following conditions: a. At the sole discretion of the City Manager, this agreement may be extended by two, two- year extensions (for a maximum of five years). b. This Agreement may be terminated with or without cause by the City. Termination without cause shall be effective only upon 60-day written notice to the Contractor. During said 60-day period, the Contractor shall perform all services in accordance with this Agreement. Page 10 of 14 a. This Agreement may also be terminated immediately by the City for cause in the event of a material breach of this Agreement, misrepresentation by the Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the City. b. In the event a petition in bankruptcy is filed by or against either of the Principal Parties, or in the event either makes an assignment for the benefit of creditors or takes advantage of any involvency act, the other party may terminate this Agreement upon ten (10) days notice to the other. c. Upon termination, any cash will be immediately turned over to the CDC. In addition, the Contractor will submit to the CDC any financial statements required and, after each has accounted to the other with respect to all matters outstanding as of the date of termination, the CDC will furnish the Contractor security, in form and principal amount satisfactory to the Contractor, against any obligations or liabilities the Contractor may properly have incurred on behalf of the CDC hereunder. d. Termination with or without cause shall be effected by delivery of written Notice of Ten iiination to the Contractor as provided for herein. 32. Other Consideration. Nothing contained herein shall prevent the Contractor from carrying on its usual business, including the performance of other additional services for the CDC, should the CDC desire additional services, nor from performing similar services for other agencies, cities, districts or public or private entities. 33. Legal Fees. If any party brings a suit or action against the other party arising from any breach of contract of any covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in the event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from other party all costs and expenses of suit, including actual attorney's fees. 34. Mediation/Arbitration. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA as they exist. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorney's fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. Page 11 of 14 35. Termination for Default. All of the terms, conditions, and covenants of this Agreement are considered material and in the event the Contractor breaches or defaults in the performance of any such terms, conditions, or covenants which are to be kept, done, or performed by it, the CDC may give the Contractor fifteen (15) days' written notice setting forth such breach of default; and if the Contractor fails, neglects or refuses for a period of more than fifteen (15) days thereafter to remedy, make good, or perform such breach or default, the CDC, without further notice, may cancel this Agreement. 36. Notices. All Notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days if the address is outside the State of California, after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CDC: Leslie Deese, Assistant City Manager Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950 To Contractor: Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to delivery because of changed address of which no notice was given shall be deemed to constitute receipt of notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy or facsimile must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 37. Miscellaneous Provisions. Page 12 of 14 a. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or Federal, or State or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, State or legal holiday. b. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. c. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement of any provision hereof. d. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. e. Exhibits and Schedules. The Exhibits and Schedules attached hereto as hereby incorporated herein by this reference for all purposes. g. Amendment to this Agreement. The terms of this Agreement may not be modified or amended expect by an instrument in writing executed by each of the parties hereto. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision of any provision hereof. h. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. j. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. k. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party as actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had Page 13 of 14 the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the Principal Parties, by their duly authorized officers, have executed this Agreement on the date first above written. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By: , Chairman By: , President APPROVED AS TO FORM: Claudia Gacitua Silva, City Attorney By: Attachments: Exhibit "A" - Management Plan Page 14 of 14 Attachment to Request for Proposal for Kimball Tower and Morgan Tower Property Management Services Fiscal Year 2012 Approved Budgets 9 MORGAN TOWERS 2011 Budget Narrative SUMMARY The 2011 Budget proposes a rent increase based on the HUD automatic Annual Adjustment Factor (AAF). This is the entire increase to which the building is entitled. Most all expenses have increased since last year's rent increase was effective. We will submit this rent adjustment request and expect the rent increase to be effective September 1, 2011. ACCT. DESCRIPTION EXPLANATION 5120 Rental Revenue The proposed rents are as follows: 5220 Vacancy Factor 5410 Financial Revenue -Project Operations 5430 Revenue from Investments - Residual Receipts 5440 Revenue from Investments - Replacements Reserves 5910 Laundry and Vending 6203 Conventions and Meetings 6210 Advertising and Marketing 6250 Other Renting Expenses 6310 Office Salaries 6311 Office Expenses 6320 Management Fee 6330 Manager's Salaries 6340 Legal Expenses 6350 Auditing Expenses 6351 Bookkeeping Fees / Accounting Services 6390 Misc. Administrative Expenses Unit Type # of Units Current Rents Proposed Increase Proposed Rents One -Bedroom 151 $677 $10 $687 One -Bedroom 1 Staff Budgeted at 1% of rents. Budgeted per audit. Budgeted at $0. The amount remains in the residual receipts account and may not be used for operations. Budgeted at $0. The amount remains in the reserve for replacement account and may not be used for operations. Budgeted per audit. Laundry facilities are leased. Budgeted per audit plus $500 for building staff to attend occupancy related training. Budgeted per current plus $500 for classified advertising of rental units. Budgeted per current plus $500 for background screening fees of potential tenants. Budgeted per current plus 5% for assistance in processing HUD paperwork at $630 per month plus $1,250 for additional work related to front-line assistance. Note that there is no longer an office assistant and therefore budget is low compared to audit and current activity. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc. Budgeted a 0.25% rate increase from 4.75% to 5.0% of net rental and laundry revenue. Budgeted per current expense plus 5% for Patricia Estanciero, Resident Manager, working 32 hours per week, earning $1,733 per month. Note that the manager's salary is split between Morgan and Kimball Towers. Also budgeted for Rosa Flores, Assistant Manager, working 32 hours per week, earning $2,496 per month. Budgeted additional amount for overtime, sick time and salary increases. Budgeted per audit plus $500 for project related legal expenses. Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. Budgeted $750 for quarterly computer maintenance, $765 for project computer software updates plus $1,500 for RealPage Software. Budgeted per current expense for Resident Council at $100 per month and for a service coordinator at $1,000 per month. Also includes an allowable 10% fee (of __._.. service coordinator costs) at $1,200 for quality assurance services. Prepared by Fallcenberg/Gilliatn & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 ■ (323) 258-3512 Morgan Towers ACCT. 6450 6451 6452 6453 2011 Budget Narrative EXPLANATION Budgeted per audit plus 5%. Budgeted per 12-month total of $33,890 plus 5%. Gas Budgeted per audit plus 5%. Sewer Budgeted per audit plus 5%. Current is low because Morgan Towers has not received sewer bill from Public Works for reimbursement. 6510 Payroll Budgeted per current expense plus 5% for Roberto Estanciero, Superintendent, working 19 hours a week earning $2,022 per month. Note that the Superintendent's salary is split between Morgan and Kimball Towers. Also budgeted for Philip Flores, Assistant Superintendent, working 37 hours a week earning $2,912 per month and for Keyanue McCallon, Maintenance working 40 hours a week earning $3,467. Budgeted additional amount for overtime, sick time and salary increases. 6515 Supplies Budgeted per current (less $16,769 for refrigerators and stoves, reimbursed from the reserve fund) plus 5% for cleaning and plumbing supplies, electrical and maintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit (less $171,031 for capital needs items) plus 5% for elevator maintenance, plumbing and electrical repair, carpet cleaning, landscaping, exterminating, generator service, etc. Page 2 DESCRIPTION Electricity Water 6520 Contracts 6525 Garbage and Trash Removal 6530 Security Payroll/ Contract 6546 Heating/Cooling Repairs 6711 Payroll Taxes 6720 Property and Liability Insurance 6722 Worker's Compensation 6723 Health Insurance & Other Employee Benefits 6790 Misc. Taxes, Licenses and Permits 6820 Interest on Mortgage Payable 6850 Mortgage Insurance Premium Reserve for Replacement Deposits Principal Payments Required Budgeted per audit plus 5%. Budgeted per audit plus 5% for guard service, quarterly fire alarm inspections, annual fire alarm monitoring, fire/sprinkler alarm repairs, smoke detector purchases and installation, and fire extinguisher service. Budgeted per audit plus 5% for heating and cooling repairs. Budgeted at 7.65% of salaries for Social Security and Medicare plus $224 each for SUI/ETT taxes. Budgeted per audit plus 5% for property and liability insurance. Budgeted per current premium of $15,133 plus 5%. Budgeted per current expense plus 5% for four employees at monthly cost of $699.38 each for health insurance, $5.90 each for life insurance, and $15.05 each for dental insurance. In addition, budgeted for pension cost which is 5% of each employee's base payroll. Budgeted per audit plus $500 for elevator inspection fees, generator permits, and other misc. fees. Budgeted per amortization schedule. Budgeted per amortization schedule. Budgeted per monthly deposit of $3,127. Budgeted per amortization schedule. May 19, 2011 Prepared by FalkenberglGilliam & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 ■ (323) 258-3512 Budget Worksheet income and Expense Projections U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner Public reporting burden for this collection of information is estimated to average 1.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. OMB Approval No. 2502-0324 (exp. 091312011) This information is cottected in accordance with Title II of the National Housing Act which requires that HUD regulate rents for certain cooperative and subsidized rental projects. The Department formulated the processes by which owners could request increases. The requirements for tenant participation in the rent increase process, which is included in Section 202 (b) of the HCD Amendments of 1978, necessitated that the Department design procedures to give consideration for tenant comments. The information gathered is not of a confidential nature. The information is required in order to obtain benefits. Project Number 129-38013 Name of Project MORGAN TOWERS Description of Account Acct. No. Profit/Loss (FYE 6/30/2010) PUPM 151112 Current FY (no. of mos. 9) PUPM 15119 Budget from 911111-8131112 PUPM 151/12 Rental Rent Revenue - Gross Potential 5120 511,165 282.10 375,910 276.61 541,543 298.86 Income Tenant Assistance Payments 5121 663,850 366.36 534,421 393.25 703,301 388.14 5100 Rent Revenue - Stores & Commercial 5140 - - - Garage & Parking Spaces 5170 - - - Flexible Subsidy Revenue 5180 - - - Miscellaneous Rent Revenue 5190 - - - Excess Rent 5191 - - - Rent Revenuellnsurance 5192 - - - Special Claims Revenue 5193 - - - Retained Excess Income 5194 - - - Total Rent Revenue Potential at 100% Occupancy 5100T 1,175,015 648.46 910,331 669.85 1,244,844 687.00 Vacancies Apartments 5220 • 6,060 3.34 3,252 2.39 12,448 6.87 5200 Stores and Commercial 5240 - - - Rental Concessions 5250 110 0.06 1,047 0.77 - Garage & Parking Spaces 5270 - - - Miscellaneous 5290 -. - Total Vacancies 5200T 6,170 3.41 4,299 3.16 12,448 6.87 Net Rental Revenue (Rent Revenue less Vacancies) 5152N 1,168,845 645.06 906,032 666.69 1,232,396 680.13 income Nursing Homes/Assisted Living/Board & Care! Other 5300 Elderly Care! Coop! Other Revenues 5300 Financial Revenue - Project Operations 5410 82 0.05 20 0.01 82 0.05 Financial Revenue Revenue from Investments - Res. Rec. 5430 485 0.27 - - 5400 Revenue from Investments - Repl. Res 5440 2,529 1.40 - - Revenue from Investments - Miscellaneous 5490 - - - - Total Financial Revenue 5400T 3,096 1.71 20 0.01 82 0.05 Other Laundry and Vending Revenue 5910 6,787 3.75 5,367 3.95 6,787 3.75 Revenue Tenant Charges 5920 - - - 5900 Interest Reduction Payments Revenue 5945 - - - Gifts (nonprofits) 5970 - - - Miscellaneous Revenue 5990 255 0.14 100 0.07 - Total Other Revenue 5900T 7,042 3.89 5,467 4.02 6,787 3.75 Total Revenue 5000T 1,178,983 650.65 911,519 670.73 1,239,265 683.92 Admin. Conventions and Meetings 6203 2,228 1.23 1,510 1.11 2,728 1.51 Expenses Management Consultants 6204 - - - 6200! Advertising and Marketing 6210 1,118 0.62 1,081 0.80 1,618 0.89 6300 Other Renting Expense 6250 - 1,048 0.77 1,548 0.85 Office Salaries 6310 24,440 13.49 12,679 9.33 9,188 5.07 Office Expenses 6311 16,222 8.95 6,785 4.99 17,033 9.40 Office or Model Apartment Rent 6312 - - - - Management Fee 6320 52,412 28.92 42,188 31.04 61,959 34.19 Manager or Superintendent Salaries 6330 54,498 30.08 42,864 31.54 58,290 32.17 Administrative Rent Free Unit 6331 Legal Expenses - Project 6340 1,370 0.76 1,080 0.79 1,870 1.03 Audit Expenses 6350 8,725 4.82 2,000 1.47 9,225 5.09 Bookkeeping Fees/Accounting.Services 6351 875 0.48 2,890 2.13 3,166 1.75 Miscellaneous Administrative Expenses 6390 13,200 7.28 9,900 7.28 14,400 7.95 Total Administrative Expenses 6263 T 175,088 96.63 124,025 91.26 r 181,025 99.90 Previous editions are obsdete page 1 of 2 ref. Handbook 4350.1 form HUD-92547-A 8l2000) Project Number Name of Project a.w� Tc�w 1:29-38013 ....,........ - . _ - - - - Acct. No. Profit/Loss (FYE 613012010) PUPM 151/12 Current FY (no. of mos. 9) PUPM 15119 Budget from 911111 8131112 PUPM 151112 Description of Account Utilities Fuel OillCoal 6420 6450 43,224 23.85 29,836 25,258 21.95 18.59 45,385 35,585 25.05 19.64 6400 Electricity Water 6451 6452 6453 6400 T 31,658 36,068 45,600 156,550 17.47 19.91 25.17 86.40 27,116 19.95 37,871 20.90 Gas 0 - 47,880 26.42 Sewer 82,210 96,901 60.49 71.30 166,721 113,346 92.01 62.55 Total Utilities Expense Operating & Payroll 6510 6515 6520 106,225 69,708 356,393 58.62 38.47 196.68 37,305 27.45 55,586 30.68 Maint. Supplies 104,305 76.75 194,630 107.41 Expenses Contracts 6500 Operating and Maintenance Rent Free Unit Garbage and Trash Removal 6521 6525 13,127 7.24 9,692 7.13 13,783 7.61 Security PayrolllContract 6530 31,723 17,51 21,391 15.74 33,309 18.38 - Security Rent Free Unit 6531 6546 6548 31,356 - 17.30 - 22,483 16.54 32,924 18.17 HeatinglCooling Repairs and Maintenance Snow Removal - Vehicle & Maint. Equip. Oper. and Repair 6570 Misc. Operating & Maintenance Expenses 6590 - Total Operating & Maintenance Expenses 6500 T 6710 608,532 335.83 292,077 214.92 443,678 244.80 - - Taxes & Real Estate Taxes Insurance Payroll Taxes (Project's share) 6711 6720 16,270 33,871 8.98 18.69 13,754 10.12 14,250 7.86 24,563 11,350 19,217 18.07 8.35 14.14 35,565 . 15,890 43,883 19.63- - 8.77 24.22 6700 Property and Liability Insurance (Hazard) Fidelity Bond Insurance 6721 - Workmen's Compensation 6722 11,992 6.62 Health Insurance & Other Employee Benefits 6723 32,785 18.09 1,681 70,565 1.24 51.92 2,181 111,769 1.20 61.68 Misc. Taxes, Licen.. Permits, & Insurance 6790 1,654 0.91 Total Taxes & Insurance 6700T 6820 96,572 168,132 53.30 92.79 117,710 86.62 141,564 78.13' Interest on Mortgage Payable Financial Expenses Interest on Notes Payable (Long -Term) "` 6830 6800 Interest on Notes Payable (Short -Term) "` 6840 Mortgage Insurance PremiumlService Charge 6850 12,850 7.09. 11,6$7 8.60 10,615 5.86 Miscellaneous Financial Expenses 6890 6800 T 6900 180,982 99.88 129,397 95.21 152,179 83.98 Total Financial Expenses 698,274 513.81 1,065,272 582.38 Expenses Nursing Homes/Assisted Living/Board & 6900 Care/Other Eld. Care/ Coop/ Other Total Cost of Operations 6000T 1,217,724 672.03 28,143 20.71 37,524 20-71 Reserve for Replacements Dep. Required 37,524 191,924 20.71 105.92 152,332. 112.09 218,492 120.58 Principal Payments Required Debt Service for other approved loans Debt Service Reserve (if required) General Operating Reserve (Coops) 1,447,172 1,178,983 798.66 650.65 878,749 646.61 1,311,288 723.67 Total Cash Requirements 911,619 670.73 1,239,266 683.92 Less Total Revenue Net Cash Surplus (Deficiency) (268,189) (148.01) 32,770 24.11 (72,023) (39.75) 5/19/2011 I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecuteclaims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31D [ U.S.C. 3729, 38 2) a (S nature) Pr io ions are obsolete 'HUD Approved Secondary Financing page 2 of 2 Only for Budget Projections. G -Zt-tort ref. Handbook 4350.1 form HUD-92547-A (812000) KIMBALL TOWERS 2011 Budget Narrative -SUMMARY The 2011 Budget for Kimball Towers proposes a rent increase based on escalating costs, such as the addition of the asset management fee and increased insurance costs. Last year's rents increase was effective December 1, 2010. We anticipated this rent adjustment request to be effective September 1, 2011. Currently residents pay 30% of income up to a maximum of $570. ACCT. DESCRIPTION EXPLANATION 5120 Rental Revenue The proposed rents are as follows: 5220 Vacancy Factor 5410 Financial Revenue -Project Operations Unit Type # of Units Current Rent Proposed Increase Total Rent One -Bedroom 151 $570 $15 $585 Budgeted at 1% of rents. Budgeted per audit. 5440 Revenue from Investments- Budgeted at $0. The amount remains in the reserve for replacement account and may Replacements Reserves not be used for operations. 59I0 Laundry and Vending 5990 Misc. Revenue 6203 Conventions and Meetings 6204 Management Consultants 6250 Other Renting Expenses 6310 Office Salaries 6311 Office Expenses 6320 Management Fee 6330 Manager's Salaries Budgeted per audit for laundry and water vending income. Budgeted per audit for key income and other miscellaneous revenue. Budgeted per audit plus $500 for building staff to attend occupancy related training. Budgeted a Community Development Commission asset management fee of $20,000. Budgeted at $500 for background screening fees of potential tenants. Budgeted per current plus 5% for assistance in processing rents at $250 per month plus $750 for additional work related to front-line assistance. Also budgeted for office assistant, Jennifer Hart, working 40 hours per week at $2,773 per month plus additional amount for sick, overtime and salary increase. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc. Budgeted a 0.25% rate increase from 7.25% to 7.50% of net rental and laundry revenue. Budgeted per current expense plus 5% for Patricia Estanciero, Resident Manager, working 32 hours per week, earning $1,733 per month. Note that the manager's salary is split between Morgan and Kimball Towers. Also budgeted for Floria Gouleva, Assistant Manager, working 32 hours per week, earning $2,357 per month. Budgeted additional amount for overtime, sick and salary increases. 6331 Administrative Rent -Free Budgeted at $585 each per month for the manager's unit and assistant manager's unit. Units 6340 Legal Expenses 6350 Auditing Expenses 6351 Bookkeeping Fees / Accounting Services 6390 Misc. Administrative Expenses Budgeted per current plus $500 for project related legal expenses. Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. Budgeted per current plus 5% for quarterly computer maintenance at $750, project computer software updates at $930 and $2,600 for RealPage Software. Budgeted per current expense for Resident Council at $100 per month and for a service coordinator at $1,000 per month. Also includes an allowable 10% fee (of service coordinator costs) at $1,200 for quality assurance services. Prepared by Falkenberg/Gilliam & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 ■ (323) 258-3512 Kimball Towers ACCT. 6450 6451 6452 6453 DESCRIPTION Electricity Water Gas Sewer 6510 Payroll 6515 Supplies 6520 Contracts 6525 Garbage and Trash Removal 6530 Security Payroll/ Contract 6546 Heating/Cooling Repairs 6711 Payroll Taxes 6720 Property and Liability Insurance 6722 Worker's Compensation 6723 Health Insurance & Other Employee Benefits 6790 Misc. Taxes, Licenses and Permits Reserve. for Replacement Deposits 2011 Budget Narrative Page 2 EXPLANATION Budgeted per audit plus 5%. Budgeted per 12-month total of $31,543 plus 5%. Budgeted per 12-month total of $52,536 plus 5%. Budgeted per audit plus 5%. Current is low because Kimball Towers has not received sewer bill from Public Works for reimbursement. Budgeted per current expense plus 5% for Roberto Estanciero , Superintendent, working 19 hours a week earning $2,022 per month. Note that the Superintendent's salary is split between Morgan and Kimball Towers. Also budgeted for Iordan Gouleva, Assistant Superintendent, working 40 hours a week earning $2,947 per month and for Charles Ray, Maintenance working 40 hours a week earning $3,120. Budgeted additional amount for sick, overtime and salary increases. Budgeted per audit (less $4,700 for purchase of refrigerators/stoves) plus 5% for cleaning supplies, plumbing supplies, electrical and maintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit (less $333,619 for capital needs items, which are ineligible to be included in the budget) plus 5% for elevator maintenance, plumbing and electrical repair, carpet cleaning, landscaping, exterminating, generator service, etc. Budgeted per audit plus 5%. Budgeted per audit plus 5% for guard service, quarterly fire alarm inspections, annual fire alarm monitoring, fire/sprinkler alarm repairs, smoke detector purchases and installation, and fire extinguisher service. Budgeted per audit (less $11,364 for isolation valve replacements) plus 5% for heating and cooling repairs. Budgeted at 7.65% of salaries for Social Security and Medicare plus $224 each for SUI/ETT taxes. Budgeted per audit plus 5% for property and liability insurance. Budgeted per current premium of $16,272 plus 5%. Budgeted per current expense plus 5% for four employees at monthly cost of $699.38 each for health insurance, $5.90 each for life insurance, and $15.05 each for dental insurance. In addition, budgeted for pension cost which is 5% of each employee's base payroll Budgeted per audit plus $500 for elevator inspection fees, generator permits, and other misc. fees. Budgeted per monthly deposit of $7,000. May 24, 2011 Prepared by FalkenbergIGilliam & Associates, Inc. • Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 ■ (323) 258-3512 Budget Worksheet U.S. Department of Housing and Urban Development Income and Expense Projections Office of Housing Federal Housing Commissioner Public reporting burden for this collection of information is estimated to average 1.5 hours per response. including the lime for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not coiled this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is collected in accordance with Title tl of the National Housing Act which requires that HUD regulate rents for certain cooperative and subsidized rental projects. The Department formulated the processes by which owners could request increases. The requirements for tenant participation in the rent increase process, which is included in Section 202 (b) of the HCD Amendments of 1978, necessitated that the Department design procedures to give consideration for tenant comments. The information gathered is not of a confidential nature. The information is required in order to obtain benefits. OMB Approval No. 2502-0324 (exp. 09/3/2011) Project Number Name of Project KIMBALL TOWER Description of Account Acct. No. Profit/Loss (FYE 6130/2010) Current FY (no. of mos. 9) Budget from 9/1/11-8/31/12 Rental Rent Revenue - Gross Potential 5120 529,508 383,992 635,453 Income Tenant Assistance Payments 5121 353,782 340,423 424,567 5100 Rent Revenue - Stores & Commercial 5140 Garage & Parking Spaces 5170 Flexible Subsidy Revenue 5180 Miscellaneous Rent Revenue 5190 Excess Rent 5191 Rent Revenue/Insurance 5192 Special Claims Revenue 5193 Retained Excess Income 5194 Total Rent Revenue Potential at 100% Occupancy 5100T 883,290 724,415 1,060,020 Vacancies Apartments 5220 2,721 894 10,600 5200 Stores and Commercial 5240 Rental Concessions 5250 Garage & Parking Spaces 5270 Miscellaneous 5290 Total Vacancies 5200T 2,721 894 10,600 Net Rental Revenue (Rent Revenue less Vacancies) 5152N 880,569 723,521 1,049,420 Income Nursing Homes/Assisted Living/Board & Care! Other 5300 Elderly Care! Coop! Other Revenues 5300 Financial Financial Revenue - Project Operations 5410 109 23 109. Revenue Revenue from Investments - Res. Rec. 5430 5400 Revenue from Investments - Repl. Res 5440 3,738 Revenue from Investments - Miscellaneous 5490 Total Financial Revenue 5400T 3,847 23 109 Other Laundry and Vending Revenue 5910 7,119 5,383 7,119 Revenue Tenant Charges 5920 5900 Interest Reduction Payments Revenue 5945 Gifts (nonprofits) 5970 Miscellaneous Revenue 5990 140 320 140 Total Other Revenue 5900T 7,259 5,703 7,259 Total Revenue 5000T 891,676 729,247 1,056,788 Admin. Conventions and Meetings 6203 2,237 4,085 2,737 Expenses Management Consultants 6204 20,000 62001 Advertising and Marketing 6210 - - 6300 Other Renting Expense 6250 52 500 Office Salaries 6310 33,793 34,546 41,344 Office Expenses 6311 25,880 13,954 27,174 Office or Model Apartment Rent 6312 - Management Fee 6320 60,363 51,844 79,240 Manager or Superintendent Salaries 6330 51,713 41,841 56,542 Administrative Rent Free Unit 6331 17,784 10,960 14,040 Legal Expenses - Project 6340 - 1,080 1,580 Audit Expenses 6350 3,500 3,000 4,000 Bookkeeping Fees/Accounting Services 6351 1,555 3,740 4,494 Miscellaneous Administrative Expenses 6390 13,200 9,900 14,400 Total Administrative Expenses 6263 T 210,025 175,002 266,051 Previous editions are obsolete page 1 of 2 ref. Handbook 4350.1 form HUD-92547-A (8/2000) Name of Project KIMBALL TOWER Warning: HUD will (Signature) Pre Project Number Description of Account Utilities 6400 Fuel Oil/Coal Electricity Water Gas Sewer Total Utilities Expense Operating & Payroll Maint. Expenses 6500 Taxes & Insurance 6700 Financial Expenses 6800 Expenses 6900 Supplies Contracts Operating and Maintenance Rent Free Unit Garbage and Trash Removal Security Payroll/Contract Security Rent Free Unit Heating/Cooling Repairs and Maintenance Snow Removal Vehicle & Maint. Equip. Oper. and Repair Misc. Operating & Maintenance Expenses Total Operating & Maintenance Expenses Real Estate Taxes Payroll Taxes (Projects share) Property and Liability Insurance (Hazard) Fidelity Bond Insurance Workmen's Compensation Health Insurance & Other Employee Benefits Misc. Taxes, Licen., Permits, & Insurance Total Taxes & Insurance Interest on Mortgage Payable Interest on Notes Payable (Long -Term) Interest on Notes Payable (Short -Term) * Mortgage Insurance Premium/Service Charge Miscellaneous Financial Expenses Total Financial Expenses Nursing Homes/Assisted Living/Board & Care/Other Eld. Care/ Coop! Other Total Cost of Operations Reserve for Replacements Dep. Required Principal Payments Required Debt Service for other approved loans Debt Service Reserve (if required) General Operating Reserve (Coops) Total Cash Requirements Less Total Revenue Net Cash Surplus (Deficiency) 1,207,066 497.185 Acct. No. 6420 6450 6400 T 6510 Profit/Loss (FYE 6/30/2010) Current FY (no. of mos. 9 ) 45,693 33,157 168,408 101,809 6515 58,354 6520 6521 mm�" 28,412 94,814 73,993 36,788 136,430 Eizmummum6530 6546 33,000 1111111111111111111111 1111111111111111152321 22,707 10,408 22,226 15,703 6570 6590 6500 T 733,017 6710 6711 17,009 6720 33,345 11131.1111111111111111111111111.1111.111111.11 iirsalll� 9,190 18,815 6723 30,725 6790 789 6700T 95,616 6820 6830 65,034 6840 6850 6890 6800 T 6900 60007 63;000 Budget from 9/1 /11-8/31 /12 47,978 33,120 55,163 47,565 183,826 109,418 56,337 171,744 14,970 29,833 22,718 405,020 16,904 35,012 17,086 45,351 1,289 116,642 1111111111111111111111111111111 1,291,066 84,000 693,398 970,539 84,000 1,054,539 1,056,788 2,249 5/24/2011 ded in the accompaniment h, is e and accurate. i hereby certify that all the information and statements. Conviction information result in1criminal and/or civil penalties. r(8tLi S.Cu to false1001, 10 0, 1012, 31 U.S.C. 3729, 3802) Date (mmld&my) editions are obsolete "HUD Approved Secondary Financing page 2 of 2 Only for Budget Projections. ref. Handbook 4350.1 6- Zz 2i/ form HUD-92547-A (B/2000)