HomeMy WebLinkAbout2006 CON CDC Falkenberg/Gilliam -Mgt. Morgan & Kimball TowersMORGAN TOWER
MANAGEMENT AGREEMENT
This Agreement is made this 3rd day of October, 2006, between the Community
Development Commission of the City of National City hereinafter referred to as "CDC" and
Falkenberg/Gilliam & Associates, Inc. hereinafter referred to as "Contractor".
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 FalkenberglGilliam & Associates, Inc..
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.
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
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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 Project No. 129-38013-PB-WAH-L8. 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
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 Contractor with copies of the Regulatory Agreement and the Housing Assistance
Payments Contract. In performing its duties under this Management Agreement, the
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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. The CDC has fiunished 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 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 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.
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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.
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 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 I 3(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 Contractor keeps the
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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 coiitiactors 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 Manger, a Social Services Director, and maintenance, bookkeeping, clerical, and
other managerial employees. All such on -site personnel are employees of the Contractor
and not of the CDC.
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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.
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 worker'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
Agreement, including compensation payable to the Agent, pursuant to
Section 32 below, for its service hereunder.
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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.
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g.
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
(10`s) day of the same month.
By the fifteenth (15t) 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.
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 Contractor shall be purchased at costs not in excess of those that
would be incurred in making arms -length purchases on the open market.
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The Contractor shall solicit written estimates (i.e., 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 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,
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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. Commercial 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.
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
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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 16(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 October 3, 2006, until terminated.
a. Each such monthly fee will be in an amount equal to four point zero percent
(4.00%) 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 one-fourth of
one percent (1/4%) (Example: a fee of 5% of gross collections could be increased
to 5 '/4%) 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.
33. Term of Agreement. This Agreement shall be in effect on a month -to -month basis. This
Agreement is subject to the following conditions:
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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.
c. 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.
d. 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.
e. 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 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 12 of 15
Morgan Tower
T iIonn nan,nnt A nraamant
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:
Brad Raulston, Executive Director
Community Development Commission
of the City of National City
140 E. 12t Street, Suite B
National City, CA 91950
To Contractor:
Priscilla Gilliam, President
Falkenberg/Gilliam & Associates, Inc.
Post Office Box 7070
Pasadena, CA 91109-7070
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.
Page 13 of 15 Morgan Tower
A/Tnnonnntnnt A rrrnnrnnnt
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.
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.
g.
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.
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 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
Page 14 of 15 Morgan Tower
A r,,,, qv nn+ A r,.notnnnt
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 FALKENBERGIGILLIAM &
OF THE CITY OF NATIONAL CITY ASSOCIATES, INC.
By: Nick Inzunza, Cha
APPROVED AS TO FORM:
George H. Eiser, III
Legal Counsel
Attachment: Exhibit "A" - Management Plan
By:
Priscilla Gilliam, Presi • ent
By:
Carol Benninger, Acting Secret
Page 15 of 15 Morgan Tower
\Anr,n rmmant Arrraamant
MORGAN TOWER
MANAGEMENT PLAN
1. The role and responsibility of the Community Development Commission (CDC), and its
relation and delegations of authority to the Contractor.
The Contractor is directly responsible for the day-to-day activities of the project. On -site
personnel in the building report directly to the Contractor.
All normal functions of the building are directed by the Contractor, who has the authority to
expend up to Five Thousand Dollars ($5,000) without prior approval in connection with the
maintenance and repair of the project. This limit does not extend to emergency repairs. The
Executive Director of the CDC is the key contact person and has CDC authority to act in
most matters.
It is the role and responsibility of the CDC to set specific policies in the areas of financial
matters, condition of the physical plan, tenant services, and the use of community agencies.
The CDC will meet with the Agent on a monthly basis to discuss cash flow, budgets,
proposed expenditures and other fiscal matters. CDC members may visit the project
frequently to observe the condition of the physical plant. Because of .their familiarity with
the community, CDC members are able to give help and guidance as to locally available
tenant services and community agencies.
Social services for the tenants will be under the direction of the Contractor. The resident
managers together with the Residents' Counselor will be familiar with local agencies to
which tenants with problems can be referred.
2. Personnel policy and staffing arrangements.
All hiring procedures of Contractor are, to the best of our knowledge, in conformity with
equal opportunity requirements. Residents of the projects for the elderly are not normally
interested in employment, however, where practical, project residents are considered for
employment. Staffing requirements call for a Maintenance Superintendent, Assistant
Superintendent, Resident Manager and Assistant Resident Manager (The Maintenance
Superintendent and Resident Manger divide their time equally between Morgan Tower and
Kimball Tower). Contractor will secure approval from the CDC for any additional staff
deemed necessary to efficiently operate the project. In interviewing staff applicants, strong
consideration is given to people willing to share an apartment who are able to work in
combination as a maintenance -management team. This has the dual effect of greatly aiding
staff cooperation and reducing the number of apartments required for staff use. In addition to
the above staff, the project shares the services of a social services director with Kimball
Tower.
Exhibit "A"
On -site employees will be considered employees of the Contractor. • The Contractor will
process the payroll through its accounting system, and will be reimbursed in full for all direct
costs attendant to the employees including, but not limited to: payroll, FICA, Medicare,
unemployment insurance, and worker's compensation.
All staff is under the supervision of the Contractor. The Resident Manger has primary local
responsibility for tenant relationship and fiscal matters. The Maintenance Superintendent has
primary responsibility for the physical well being of the entire project and is also directly
responsible to the Contractor. Maintenance requests from residents will be given to the
Manager and directed to the Maintenance Department.
Compensation for the resident staff will be at or about the normal wages for this type of
work. Employees are given one week paid vacation after the first year, two weeks after the
second, third and fourth years, and three weeks thereafter.
Health insurance, dental insurance, and Ten Thousand Dollars ($10,000) of life insurance for
the Maintenance Superintendent, the Resident Manager, and other full time on -site staff
members (including those who share their time between Kimball and Morgan Towers) will
be arranged for by the Contractor and reimbursed as an Reimbursable Expense.
Employees are under frequent field supervision and their performance is regularly discussed
with them. If they have grievances, they are openly and fairly discussed. If work
performance is not satisfactory, the problem is discussed with the employee and if no
solution can be worked out, the employee is terminated with two weeks' compensation. In
the event that termination is no fault of the employee, a two -week notice is given.
3. Tenant Selection Policy and Marketing Activities
Tenant selection procedure is based on requirements established by the CDC. To qualify for
residency, persons must meet age and income requirements. A copy of the Tenant Selection
Plan is attached hereto.
The Resident Manager conducts interviews of prospective residents. The Resident Manager
has the authority to rent to applicants that he/she believes meet all of the residency
requirements; however, if the Resident Manager feels that the person is not in sufficiently
good health, or does not qualify for other reasons, the matter is referred to the Contractor and
then, if necessary, to the Director of the CDC for a final decision.
4. Procedures for determining tenant eligibility and for certifying and recertifying income.
Thorough training of the Resident Manager is provided by the Contractor as to family size
and composition. Written evidence, as required by HUD for the Section 8 Program, is
obtained to verify tenants' income and all other eligibility requirements. Recertification of
income is obtained every year.
Page 2 of 5
5. Plans for carrying out an effective maintenance and repair program.
The Contractor retains maintenance personnel on behalf of the project who are
knowledgeable about the mechanical aspects of this type of facility and its equipment.
The maintenance personnel are responsible for preventive maintenance procedures for
heating systems, appliances, water systems, roof grounds, etc. Public areas of the project, i.e.
corridors, stairways, mechanical spaces, community areas, laundry room, parking spaces and
grounds are to be inspected by the maintenance personnel for cleanliness, defects or
obstructions, and corrected as needed. In addition, maintenance and service repair contracts
have been executed for technical inspections on a scheduled basis for the project facility.
Tenants are made familiar with the manner of operating the mechanical units in their
apartments through individual instruction by staff members, meetings of the Resident
Council, and visual displays, etc.
Apartments are inspected yearly and/or by request of tenant. Appliances, heating units, and
plumbing fixtures are checked as well as the general condition of the apartment, the paint, the
carpeting and draperies. Exterminating services for the project are on a monthly basis.
At the time of a tenant move -out, the apartment is surveyed and all needed repairs made. A
judgmental decision is made regarding whether and the apartment needs repainting.
Apartments are normally repainted on a five to six -year basis.
Trash removal is contracted by an outside firm.
Major repairs (in excess of $5,000) are made after securing bids from at least three competent
contractors and consultation with the CDC. Public bidding may be required. The contractor
is advised to contact the CDC before commencing with major repairs.
The majority of maintenance activities are handled by the resident maintenance staff. Tenant
requests for maintenance repairs are submitted to the project office, logged in, and turned
over to the maintenance staff for completion. The office keeps a copy of the request and
verifies that the work has been done. See attached schedule for general cleaning and
maintenance procedures.
6. Rent collection policies and procedures.
Rent is collected on -site during regular working hours at the office. Rent may be paid by
check or cash, or checks may be mailed through normal channels. Partial payments and pre-
payments are accepted provided the rent is kept current. No late fees are charged for
delinquencies. All receipts are recorded individually.
Page 3 of 5
If a due date for rent is missed, the tenant is contacted on the third day. If there is a
temporary problem, arrangements are made as necessary. If the resident has budgetary
problems, the manager will be able to refer him or her to a local social service agency. In the
event that a tenant falls more than thirty days in arrears or is creating difficulties for other
tenants that cannot be resolved, the problem is referred to the CDC. If all attempts to solve
the problem fail, a thirty -day eviction notice is given.
Tenants are charged a security deposit of one month's rent or $50, whichever is greater.
7. Program for maintaining adequate accounting records and maintaining necessary
forms and vouchers.
Accounts and records will be kept in accordance with the HUD handbook of FHA
Requirements Governing Fiscal Operations (Handbook 4371.1). All tenant certifications are
kept on file at the site. The Contractor will review invoices, prepare, sign and mail checks,
and maintain a comprehensive system of books and accounts in its office. In accordance
with HUD Handbook 4381.5 Rev.-2, Pages 6-30, the Contractor will be compensated
separately for these functions.
The project's cash flow can be easily monitored by the accounting. system. A detailed
schedule of all occupied units is prepared each month. The Contractor furnishes the Owner
monthly reports of receipts and disbursements.
The CDC will select a CPA firm to perform an annual audit and the Contractor will work
with the auditor.
8. Plans for tenant -management relations.
Tenants are oriented to the project during the leasing interview. At the time of move -in, a
Resident Guide (a handbook of tenant policies and procedures) is discussed and given to the
tenant. If necessary, a lease in a foreign language is provided. The lease is on a month -to -
month basis.
A Resident Council has been formed consisting of elected representatives from the project,
who in turn elect officers. The Resident Manager will attend Council meetings as an ex-
officio member. Although the function of this Council is primarily' for tenant activities,
suggestions and complaints regarding the building can be channeled through the Council.
Individual tenant grievances can be brought to the manager, and in the event the manner
cannot be handled at that level, the Contractor, with the assistance of the Residents'
Counselor, will attempt to solve the problem. Problems that cannot be settled in that manner
will receive final consideration by the CDC.
Page 4 of 5
9. Social Services Program.
The project shares a part-time social director with Morgan Tower. This person organizes
and directs a variety of resident activities.
Arrangements have been made with the social service agencies serving seniors in the
National City area as to the method of referral and the resident manager is responsible for
those referrals. Special counseling services are provided by a Residents' Counselor under a
contract with a local Social Service Provider. The cost of these services is included in the
budget as an operating cost of the project. It is not intended that there will be any costs borne
by the Agent in this regard; costs would be billed to the project, and they would be
considered budgetary provisions to be approved by the CDC.
Page 5 of 5
Morgan Tower
Street Address: 1415 "D" Avenue, National City, CA 91950
Mailing Address and Manager's Office: 1317 "D" Avenue, National City, CA 91950
Telephone: (619) 477-4716 • Fax: (619) 477-0559 • TTY: 711
ELDERLY HOUSING
TENANT SELECTION PLAN
Morgan Tower operates under the Section 231 Program, which provides housing for elderly and
physically disabled persons, as set forth in its Regulatory Agreement. All of the building's units are
under a Section 8 New Construction contract.
To qualify for residency, applicants must meet all of the criteria listed on these pages.
• Applicant must be 62 years of age or older (in
the case of a couple, one person must be 62
years of age or older), or 18 years of age or
older and require the special features of the
accessible units.
• Household income must be within the very low
HUD income.limits. HUD income limits change
annually and vary by household size. The
Owner will provide applicants with a copy of
the most current income limits upon request.
• Household size must be appropriate for unit
(maximum of two persons for a one -bedroom
apartment). Reasonable accommodation for a
live-in aide may allow an adjustment to this
occupancy standard.
• Federal rental assistance is restricted to U.S.
citizens or nationals and non -citizens who have
eligible immigration status as determined by
HUD. All family members, regardless of age,
must declare their citizenship or immigration
status. Non -citizens under age 62 must sign a
Verification Consent Form and submit
documentation of their status or sign a
declaration that they do not claim to have
eligible status. (See Attachment "A" for further
details, including pro -rated assistance
information.)
• Applicants must disclose and provide
documentation of social security numbers
(SSNs) for all household members 6 years of
age and older. If no SSN has been assigned to a
particular family member, the applicant must
sign a certification stating that no SSN has been
assigned. (See Attachment "A" for further
details and documentation requirements.)
• A household is eligible for assistance only if
the unit will be the household's only residence.
The Owner will not knowingly provide
assistance to applicants who maintain a
residence i'n addition to the HUD -assisted unit.
Furthermore, residents cannot receive rental
subsidy in two places at the same time. If, for
any reason, a resident moves into this property
before moving out of another subsidized unit,
the new resident will be required to pay market
rent until the day after the move out from the
previous property is complete. The household
assistance in the unit being vacated must end
the day before the subsidy begins in the new
unit.
• Full time students must meet specific criteria to
be eligible as head or co-head of household.
(See Attachment "C" for further details.)
Applications for occupancy may be requested in
writing or by phone and will be sent to the
interested party by first class mail. Applications
may be returned by mail or delivered to the
building office. Each application must be
completed in full, including appropriate signatures,
and will undergo a preliminary determination of
eligibility based on the age of the applicant,
citizenship, Social Security Number, and criminal
background or sex offender history as indicated on
the applicant's Background Screening Consent
form. If not determined ineligible, the applicant's
information will be entered on the waiting list in
the order of date and time received. Final eligibility
determination will be made at the time a unit
becomes available.
Page 1 of 6
Applicants on the waiting list must advise the
Owner whenever there is a change of address and/or
telephone number. The Owner will periodically
mail requests for updated information in order to
keep the waiting list information current in regards
to contact information, family composition, and to
confirm that the applicant desires to remain on the
waiting list. Applicants will be removed from the
waiting list if update requests are returned
undeliverable as addressed or if an applicant fails to
respond within the time period stated in the update
request.
Applicants will be taken from the waiting list in
chronological order without regard to race, color,
religion, national origin, sex, age, familial status, or
disability, in accordance with the Fair Housing Act
and other applicable civil rights laws and statutes,
except:
• Preference will be given to extremely low
income applicants to the extent necessary to
meet HUD occupancy requirements. HUD
requires Owners with Section 8 units to ensure
that during a fiscal year at least 40% of the
Section 8 units that become available serve
extremely low income households. When a
Section 8 unit becomes available, the Owner
may be required to offer the unit to a person or
persons who meet the extremely low income
limits. The Owner will first check the in-house
waiting list for tenants who are newly qualified
for Section 8 assistance and whose income falls
into the extremely low limits. If there are no
tenants who are eligible, then the Owner will
check the general waiting list for those
applicants whose income meets the extremely
low limits. All applicants who are passed by
due to higher incomes will remain in the same
chronological order on the waiting list.
The above preference affects only the order of
applicants on the waiting list and how they are
selected. Preferences do not make persons eligible
who would otherwise be ineligible.
Applicants who reach the top of the waiting list will
be offered appropriate units as they become
available. The Owner will schedule an interview
and request the applicant to confirm and update all
information provided on the original application,
bring documents verifying income, SSN,
citizenship, and any other information required to
verify eligibility status. The Owner will also
explain program requirements, verification
procedures, and penalties for submitting false
information. A final decision on eligibility cannot
be made until all verifications are complete.
If a special accessible unit becomes available, the
Owner will check the in-house waiting list first to
see if there are any current residents who require
the features of this type of unit. If there is no one
on the in-house waiting list, the Owner will then
check the general waiting list for persons who
require the features of this type of unit. If there are
no persons on either list requiring this type of unit,
the unit will be offered to the next applicant on the
waiting list as appropriate. If the unit is accepted
by the applicant, an agreement to transfer from the
accessible unit must be signed. This is required by
the Owner and HUD to ensure that if another
resident or applicant requires the accessible unit in
the future, the resident occupying the unit is aware
that he/she/they must transfer to a different unit
when available.
All applicants are required to sign a consent for
background screening form to screen for past or
present criminal activity. Any applicant not willing
to consent to a background screening should not
complete the application process. Live-in aides at
initial occupancy and persons or live-in aides being
added to the tenant household after initial
occupancy will also be subject to background
screening prior to approval for occupancy.
• All applicants are screened for past or present
criminal activity using the screening options
provided by National Credit Reporting's
background screening programs.
• Applicants must not have a reputation for
disruptive behavior, illegal drug use, poor
housekeeping habits, or history of late payment
of rent.
• Admission will be denied if applicant has been
evicted within three years from federally -
assisted housing for drug -related criminal
activity or from any housing for cause.
• Admission will be denied if any household
member is currently engaging in the illegal use
of a drug.
• Admission will be denied if the Owner has
reasonable cause to believe that a household
Page 2 of 6
member's illegal drug use or a pattern of illegal
drug use may threaten the health, safety or right
to peaceful enjoyment of the premises by other
residents.
• Admission will be denied if any household
member has ever been convicted of drug -related
criminal activity for manufacture or production
of methamphetamine or any other illegal drug
on the premises of federally- assisted housing or
any other felony.
• Admission will be denied if any member of the
household is subject to a lifetime registration
requirement under a State sex offender
registration program. All applicants are
screened for sex offender status using the
screening options provided by National Credit.
Reporting's Lifetime Sex Offender Search
program.
• Admission will be denied if any household
member is currently engaged in, or has ever
engaged in: (1) Drug -related criminal activity,
(2) Violent criminal activity; (3) Other criminal
activity which may threaten the health, safety,
or right to peaceful enjoyment of the premises
by other residents or persons residing in the
immediate vicinity; or (4) Other criminal
activity which may threaten the health or safety
of the Owner, property management staff, or
persons performing a contract administration
function or responsibility on behalf of the
Owner.
• Admission will be denied if the Owner has
reasonable cause to believe that a household
member's abuse or pattern of abuse of alcohol
may threaten the health, safety, or right to
peaceful enjoyment of the premises by other
residents.
Additional circumstances under which the Owner
may reject an applicant for occupancy or assistance
include, but are not limited to:
• Income is over the HUD -established limit for
the building;
• Applicant is not yet 62 years of age;
• Applicant is under 62 years of age and does not
require the features of an accessible unit;
• Adequate information has not been submitted to
determine eligibility;
• Applicant falsifies information on application
and/or other documentation required to
determine eligibility;
• Unfavorable background screening on
applicant is received;
• Applicant has been evicted from prior
residence(s);
• Applicant exhibits disruptive or aggressive
behavior.
Each household member 18 years of age and older
is required to sign the following consent forms at
initial occupancy and annually thereafter,
regardless of whether the individual is reporting
income:
• HUD-9887, Notice and Consent for the Release
of Information to HUD and to a PHA
• HUD-9887-A, Applicant's/Resident's Consent
to the Release of Information Verification by
Owners of Information Supplied by Individuals
Who Apply for Housing Assistance
Each household member 18 years of age and older
must sign separate verification documents, as
necessary, at initial occupancy and annually
thereafter, so the Owner can verify eligibility
information. Information to be verified includes,
but is not limited to, source and amount of income,
medical and pharmacy expenses, life and medical
insurance premiums, stock ownership, pension,
employment/unemployment, certification of family
contributions (statement must be notarized), bank
accounts, and any other information necessary to
verify eligibility for occupancy and assistance.
If the applicant/tenant or any adult member of the
applicant/tenant's household does not sign and
submit the consent forms for release of information
or the Owner's verification forms, the Owner must
deny admission to the applicant or terminate
assistance to the tenant.
If the applicant reaches the top of the waiting list
and twice rejects a unit offered, and there are no
verifiable extenuating circumstances, the applicant
will be canceled from the waiting list. A letter will
be sent to the applicant advising him/her/them of
the cancellation and the reason(s) for cancellation.
The applicant will have 14 days from the date of
the cancellation letter to appeal the decision.
Page 3 of 6
Applicants who have been canceled from the
waiting list may reapply by submitting a new
application, providing the waiting list is open at the
time. The applicant will not regain his/her/their
position on the waiting list but will be required to
restart the process from the beginning.
Once an applicant has been approved for
occupancy, the Owner will prepare the HUD lease
and will review the lease information with the new
tenant at the time of signing.
Prior to move -in and lease signing, the Owner and
new tenant will perform a unit inspection. The unit
inspection provides an opportunity for the Owner to
familiarize the tenant with the project and the unit,
as well as to document its current condition. The
Owner will prepare a Move -in Unit Inspection
Report that will be signed and dated by both parties
and will become a part of the tenant's lease.
Unit inspections are performed annually by the
Owner to determine whether appliances and
equipment in the unit are functioning properly and
to assess whether repairs or replacements are
needed. The Owner also uses the annual inspection
as an opportunity to determine any damage caused
to the unit by the tenant's abuse or negligence and,
if so, to make any necessary repairs and bill the
tenant for the cost of the repairs. The tenant will
also be responsible for rent during the time the unit
is damaged, whether or not it is habitable, and will
lose any HUD assistance payments, if applicable,
during any period in which the unit is not habitable.
For any such period, the tenant agrees to pay the
HUD -approved market rent rather than the tenant
rent stated in the applicable lease paragraph.
Annual physical inspections of the project are also
performed by HUD and/or HUD contractors. These
physical inspections may require HUD to access a
random number of units for inspection. Adequate
notice will be given to tenants when HUD
inspections will take place.
Upon receipt of a tenant's 30-day notice to vacate a
unit, the Owner will schedule an initial inspection,
if requested by the tenant, not more than two weeks
prior to the move -out date, in conformance with
California law. A final unit inspection will be
scheduled with the tenant on the move -out date and
a Move -out Unit Inspection Report will be prepared
by the Owner. If the tenant will not be available for
the final inspection, the Owner will perform the
inspection on its own. This report will be used to
determine if any damage is considered reasonable
wear and tear or if there is excessive damage
caused by the tenant's abuse or negligence. Costs to
repair damage determined to be caused by the
tenant's abuse or negligence will be deducted from
the security deposit paid at move -in.
At lease signing, the Owner will collect the first
month's rent (pro -rated, if applicable) and a
refundable security deposit of an amount of $50.00
or one month's total tenant payment, whichever is
greater. If the tenant has a pet, the Owner will also
collect a refundable pet deposit in the amount of
$300.00. The tenant will be required to sign a
Security Deposit Agreement and conform with pet
rules as outlined in the lease and by the Owner, if
applicable.
The Owner will place the security deposit and pet
deposit, if applicable, into a segregated, interest -
bearing account and will comply with all state and
local laws and HUD regulations regarding
investment of security deposits and distribution of
interest earned.
Within 21 days after the move -out date, the Owner
will either:
• Refund the full security deposit and pet
deposit, if applicable, plus accrued interest; or
• Provide the tenant with an itemized list of
damages to the unit and an estimated cost for
repair, along with a statement of the tenant's
rights under state and local laws.
All tenants will receive as an attachment to the
lease a set of house rules ("Resident Guide"). The
Resident Guide identifies allowable and prohibited
activities at the project and in the units, provides
safety information, outlines building office hours,
and details other important aspects of residency.
The Resident Guide may be updated periodically to
incorporate HUD regulation changes, state and
local law changes, and/or to add, delete or clarify
important information for tenants. Tenants will
receive a 30-day notification of any update, along
with a new Resident Guide for their records.
Page 4 of 6
Once an applicant has been approved and has
moved into his/her/their unit, he/she/they may not
move to another unit in the building. The only
exceptions are:
• When a tenant has a medical reason that has
been certified by a doctor. The tenant's
physician will be required to complete a
verification form detailing the reasons behind
the request, the benefits that will be derived
from the transfer, the requirements of the new
unit, and whether there are any alternatives to
transferring to a new unit.
• When a tenant requires a reasonable
accommodation.
• When a tenant who is paying market or contract
rent qualifies for assistance under Section 8.
Tenants requesting a unit transfer will be put on an
in-house waiting list and will be offered an
appropriate unit when one becomes available.
Selection will be made in chronological order and
will be dependent on the specific requirements of
the tenant and the attributes of the available unit.
Tenants on in-house waiting lists will be selected
before applicants on the general waiting list.
Periodically, family composition changes after
initial occupancy. If the qualifying person leaves
the unit, a determination must be made as to
whether the remaining member of the household
will be eligible to receive assistance or remain in
the unit.
In the event of the death of the qualifying person,
the following requirements for eligibility must be
met for a person to qualify as a remaining member
of a household:
• The individual must have been a party to the
lease and living in the assisted unit with the now
deceased member of the household at the time
of his/her death.
In this case, the remaining member is eligible to
remain in the unit but must pay rent based on
his/her income.
If the individual who established eligibility leaves
the unit for any reason other than death, the Owner
must determine if the individual still residing in the
unit meets the eligibility requirements for the
project by verifying income and age. If the
individual is not eligible for the project, he/she may
not receive rental assistance and must pay contract
rent.
Two -person households who no longer wish to live
together will not be given an additional unit;
however, the departing tenant may apply for a
separate unit by completing an application and
having his/her name placed chronologically on the
general waiting list, providing the waiting list is
open at the time.
Reasonable accommodation or modification to
common areas or apartments will be made as
necessary to assist persons with disabilities, unless
these changes will change the fundamental nature
of the project or result in undue financial or
administrative burden, in conformance with
Section 504 of the Rehabilitation Act of 1973. (See
Attachment "'B" for further details regarding
reasonable accommodation.)
The Owner will conduct annual recertifications in
order to ensure that assisted tenants pay rents
commensurate with their ability to pay.
Recertifications are scheduled from March to
November by floor (e.g. Floor 1 is scheduled for
March, Floor 2 is scheduled for April, and so on.)
The tenant must supply information requested by
the Owner or HUD for use in the regularly
scheduled recertifications. The Owner will then
recompute the tenant's rent and assistance payment,
if applicable, based on the information gathered.
The tenant will be required to sign consent forms
and third -party verification forms so the Owner
may gather the following information:
• Reported family annual income;
• Value of family assets;
• Expenses related to deductions from annual
income; and
• Other factors that affect the determination of
adjusted income.
Interim recertifications may be performed when
changes affecting the tenant's ability to pay rent
occur between annual scheduled recertifications.
All tenants must notify the Owner when:
• A family member moves out of the unit;
• The tenant proposes to move a new household
member into the unit (certification and
screening criteria would apply);
Page 5 of 6
• A household member who was reported as
unemployed on the most recent certification or
recertification obtains employment; or
• The household income cumulatively increases
by $200 or more per month;
Tenants may request an interim recertification due
to changes occurring between annual scheduled
recertifications that may affect the tenant rent or
assistance payment. Changes a tenant may report
include:
• Decrease in income including, but not limited
to, loss of employment, reduction in number of
hours worked by an employed household
member, loss or reduction of welfare income;
• Increases in allowances including, but not
limited to, increased medical expenses;
• Other changes affecting the calculation of a
household's annual or adjusted income
including, but not limited to, a person becoming
disabled.
The Owner must also process an interim
recertification if the tenant verifies a change in
family composition or a change in citizenship or
eligible immigration status of any household
member.
The Owner may refuse to process an interim
recertification when the tenant reports a decrease in
income if:
• The decrease was caused by a deliberate action
of the tenant to avoid paying rent;
• The Owner has confirmation that the decrease
will last less than one month;
• A tenant receives welfare assistance in an as -
paid welfare program when the Public
Assistance Agency reduces the tenant's shelter
and utility allowance because it is greater than
the tenant's actual rent;
The Owner may delay processing an interim
recertification if there is confirmation that a tenant's
income will be partially or fully restored within two
months. The processing may be delayed until the
new income is known.
.«U•.
•nsn•ta•Ir.
The Owner may choose to close
the waiting list when the average wait becomes
excessive. Applications will not be accepted if the
waiting list is closed. Closure of the waiting list
will be implemented in accordance with the
building's Affirmative Fair Housing Marketing
Plan and HUD regulations.
When the Owner decides to re -open the waiting
list, details and instructions will be made available
in accordance with the building's Affirmative Fair
Housing Marketing Plan and HUD regulations.
This Tenant Selection Plan is always available in
the building office and a copy will be provided to
any interested party. A notice will be mailed to all
applicants on the waiting list advising when
modifications have been made to the Tenant
Selection Plan and that a copy of the updated Plan
will be provided on request.
Procedure for rejecting applicants:
1. Rejected applicants will receive written notice
clearly stating the reason for rejection. The
letter will include:
• Reason for rejection (must conform to the
approved criteria); and
• A statement that the applicant has 14 days to
respond in writing or request a meeting to
discuss the rejection.
2. Any meeting with the applicant or review of
the applicant's written response must be
conducted by a member of the owner's staff or
the management agent's staff who did not make
the initial decision to reject the applicant.
3. Ifthe applicant appeals the rejection, the owner
must give the applicant a written final decision
within five working days of the response or
meeting.
4. The following will be kept on site in the project
files for at least three years: application,
owner's final response, and all interview and
verification information upon which the owner
based the rejection.
Page 6 of 6
May 2006
Attachment "A"
Documentation Requirements
Citizenship Eligibility
All applicants will be required to submit evidence of
citizenship or eligible immigration status at the time of
application.
• U.S. citizens must sign a declaration of citizenship.
• Non -citizens aged 62 and older must sign a
declaration of eligible immigration status and
provide a proof of age document;
Non -citizens under age 62 claiming eligible status
must submit:
a. A signed declaration of eligible immigration
status;
b. A signed consent form; and
c. One of the DHS-approved documents, a list of
which will be provided by the Owner.
Non -citizens not claiming eligible immigration status may
elect to sign a statement that they acknowledge their
ineligibility for assistance.
Applicants must submit required documentation of
citizenship/immigration status no later than the date the
Owner initiates verification of other eligibility factors.
Citizen or non -citizen eligibility verification will be done
first using the Systematic Alien Verification for
Entitlements (SAVE) system through the DHS. The
applicant's citizenship/immigration status is determined
prior to move -in.
If the applicant cannot supply the documentation within
the specified time frame, the Owner may grant the
applicant an extension of not more than 30 days, but only
if the applicant certifies that the documentation is
temporarily unavailable and additional time is needed to
collect and submit the required documentation.
If the applicant reaches the top of the waiting list and a unit
becomes available, and at least one household member has
submitted the required documentation and has been
determined to be eligible, the Owner will offer the
household a unit and provide full assistance to those
household members whose documents were received on
time. Assistance will continue until information
establishing the immigration status of any remaining non -
citizen household member has been received and verified.
Once the Owner has determined citizenship/immigration
status of a household receiving assistance prior to
completion of the verification or appeal process, the Owner
must:
a. Provide full assistance to a household that has
established eligibility of all members;
b. Offer continued prorated assistance to a mixed
household; or
c. Offer temporary deferral of termination of
assistance to an ineligible household. At the end
of the deferral period the household must either
pay market rent or vacate the unit.
Social Security Number (SSN)
Acceptable documentation is the original Social Security
card issued by the Social Security Administration (SSA)
or, in the case of individuals who have applied for
legalization under the Immigration Reform and Control
Act of 1986, a letter from the DHS indicating that social
security numbers have been assigned. In the event any
member of the household does not have the original
documentation, other acceptable evidence of the SSN is
as follows:
• Driver's license with SSN
• Identification Card issued by a federal, State or
Local agency, a medical insurance provider, or an
employer or trade union
• Earnings statements on payroll stubs
• Bank statement
• Form 1099
• Benefit award letter
• Retirement benefit letter
• Life insurance policy
• Court records
Any individual who submits documentation from the
above list must provide written certification that the
document is complete and accurate.
Any individual who does not have the required
documentation or who has not been assigned a SSN must
sign a certification to that fact. The individual will then
have 60 days from the date the certification was submitted
to submit the required documentation. If the Owner has
determined that Applicant is otherwise eligible for
admission into the property, Applicant may retain
his/her/their place on the waiting list during the 60-day
period.
If the individual does not submit the required
documentation by the end of the 60 days, the applicant
will be determined ineligible and removed from the
waiting list. At the Owner's discretion, the 60-day period
may be extended for an additional 60-day period if the
individual is at least 62 years of age and was unable to
submit the required documentation within the first 60-day
period.
Attachment "B"
Reasonable Accommodation
Section 504 of the Rehabilitation Act of 1973
In addition to the Owner's affirmative obligation to
operate properties in a non-discriminatory manner and
the specific requirements to make properties physically
accessible to persons with disabilities, Owners must also
consider requests for reasonable accommodation from
applicants and tenants with disabilities.
A reasonable accommodation is a change, exception or
adjustment to a rule, policy, practice or procedure,
common area, or dwelling unit that will allow a qualified
person with a disability to:
• Participate in or have access to activities
conducted or sponsored by the Owner;
• Use and enjoy common areas of the building; or
• Live as comfortably as possible in a unit.
The applicant/resident with a disability must show that
the accommodation or modification being requested will
improve his/her life enough to justify the cost to the
Owner. There must be some connection between the
disability and the requested accommodation. The request
should be submitted in writing by the person with the
disability, a family member, someone acting on the
individuals behalf, or the Owner will assist the
applicant/resident in preparing the written request.
In the event a request is refused because it is not
reasonable for the Owner to provide the accommodation,
the Owner will make every effort to work with the
requester to determine if there is an alternative
accommodation that would adequately address the
requester's disability -related needs and be reasonable for
the Owner.
The Owner is not required to take any action that would
result in a fundamental alteration in the nature of the
program. A fundamental alteration is a change so
significant that it alters the essential nature of the
Owner's operations. An example would be to request the
Owner to provide 24-hour nursing care when this service
is not provided in the housing offered. The Owner must
allow the tenant to secure his/her own care, but the
Owner would not be required to provide the service at its
expense.
If providing such accommodation would result in an
undue financial and administrative burden, the Owner
will take other action available that would not result in
an undue burden.
The determination of undue financial and administrative
burden will be made on a case -by -case basis involving
various factors, such as the cost of the reasonable
accommodation, the financial resources of the Owner,
the benefits the accommodation would provide to the
requester, and the availability of alternative
accommodations that would adequately meet the
requester's disability -related needs.
The Owner is not required to make structural changes
that would impose an undue financial and administrative
burden, even if alternatives to making housing programs
or activities readily accessible to and usable by persons
with disabilities are not effective.
When a request for a reasonable accommodation will
result in an undue financial and administrative burden,
the Owner will provide all other needed accommodations
up to the point at which further accommodations will
result in an undue financial and administrative burden.
Assistance animals are animals that work, provide
assistance, or perform tasks for the benefit of a person
with a disability. Assistance animals perform disability -
related functions, including but not limited to, guiding
individuals who are blind or have low vision, alerting
individuals who are deaf or hard of hearing to sounds,
providing minimal protection or rescue assistance,
pulling a wheelchair, fetching items, alerting persons to
impending seizures, or providing emotional support to
persons with disabilities who have disability -related need
for such support.
The fact that a person has a disability does not
automatically entitle him/her to an assistance animal.
There must be a relationship between the person's
disability and his or her need for the animal.
Although assistance animals are not considered as pets,
the Owner may charge the tenant for the cost of repairing
any damage the assistance animal causes to the unit or
the common areas, if the Owner regularly charges
tenants for damage they cause to the premises.
EQUALHO
OPPORTUNITY
Attachment "C"
Determining the Eligibility of Full-time Students who are Head or Co -Head of
Household
As of January 30, 2006, 24 CFR Parts 5, 880, 883, et al.
Eligibility of Students for Assisted Housing Under
Section 8 of the U.S. Housing Act of 1937; Final Rule
became effective. Below is a summary of the
information provided:
No assistance shall be provided under Section 8 of the
United States Housing Act of 1937 (42 U.S.C. 14370 to
any individual who —
• Is enrolled as a student at an institution of higher
education (as defined under section 102 of the
Higher Education Act of 1965);
• Is under 24 years of age;
• Is not a veteran;
• Is unmarried;
• Does not have a dependent child; and
• Is not otherwise individually eligible, or has parents
who, individually or jointly, are not eligible, to
receive assistance under section 8 of the 1937 Act.
For the purposes of determining the eligibility of a
person to receive assistance under Section 8 of the
United States Housing Act of 1937, any financial
assistance in excess of amounts received for tuition that
an individual receives under the Higher Education Act of
1965 either from private sources or from a higher
education institution (as defined under the Higher
Education Act of 1965) shall be considered income for
that individual, except in the case of a person over the
age of 23 who has dependent children.
KIMBALL TOWER
MANAGEMENT AGREEMENT
This Agreement is made this 3rd day of October, 2006, between the Community Development
Commission of the City of National City (owner) hereinafter referred to as "CDC" and
Falkenberg/Gilliam & Associates, Inc. hereinafter referred to as "Contractor".
1. Definitions As used in this Agreement:
a. "Contractor" is Falkenberg/Gilliam & Associates, 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.
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Kimball Tower
Management 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 refer i ed 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:
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. The CDC has furnished 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 inspection by
Page 2 of 14 Kimball Tower
Management Agreement
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
Page 3 of 14
Kimball Tower
Management Agreement
funds, with a bank or other financial institution whose deposits are insured by an
agency of the United States Government. This accountwill 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 ne'Pssary 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
Page 4 of 14 Kimball Tower
Management Agreement
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 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 worker's compensation insurance)
Page 5 of 14
Kimball Tower
Management Agreement
incident to the employment of such personnel will be paid out of the Rental
Agency Account and will be treated as Reimbursable Expenses.
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.
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.
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Kimball Tower
Management Agreement
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,
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
(10th) day of the same month.
f. By the fifteenth (15t) day of each month, the Conti actor 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.
g.
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.
Page 7 of 14 Kimball Tower
Management Agreement
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 fiords by the
Contractor and its employees.
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 defined as a "public project" under Section 20161 of the
Public Contract Code and which the CDC or the Director estimates will cost $5,000 or
more and for any other 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.
Page 8 of 14 Kimball Tower
Management Agreement
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.
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. Commercial 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.
Page 9 of 14 Kimball Tower
Management Agreement
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 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.
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 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.
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 October 3, 2006, until terminated.
a. Each such monthly fee will be in an amount equal to six point three five percent
(6.35%) 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 one-fourth of
one percent (1/4%) (example: a fee of 5% of gross collections could be increased
to 5 1/4%) on the annual anniversary date of this Agreement with CDC approval.
Page l0 of 14
Kimball Tower
Management Agreement
31. Term of Agreement. This Agreement shall be in effect on a month -to -month basis. This
Agreement is subject to the following conditions:
a. This Agreement may be terminated with or without cause by the City.
Termination without cause shall be effective only upon 30-day written notice to
the Contractor. During said 30-day period, the Contractor shall perform all
services in accordance with this Agreement.
b. 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.
c. 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.
d. 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.
e. Termination with or without cause shall be effected by delivery of written Notice
of Termination 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
Page 11 of 14 Kimball Tower
Management Agreement
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.
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:
Brad Raulston, Executive Director
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4301
To Contractor:
Priscilla Gilliam, President
FalkenberglGilliam & Associates, Inc.
Page 12 of 14 Kimball Tower
Management Agreement
Post Office Box 7070
Pasadena, CA 91109-7070
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.
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.
g. 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.
Page 13 of 14 Kimball Tower
Management Agreement
j.
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.
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 FALKENBERGIGIL LIAM &
OF THE CITY OF NATIONAL CITY
icnzutahairman
APPROVED AS TO FORM:
George H. Eiser, III
City/CDC Attorney
Attachments: Exhibit "A" - Management Plan
ASSOCIATES, INC.
y: Priscilla Gilliam, President
By: Carol Benninger, Acting
Secretary
Page 14 of 14 Kimball Tower
Manogement Agreement
KIMBALL TOWER
MANAGEMENT PLAN
1. The role and responsibility of the Community Development Commission (CDC), and its
relation and delegations of authority to the Contractor.
The Contractor is directly responsible for the day-to-day activities of the project. On -site
personnel in the building report directly to the Contractor.
All normal functions of the building are directed by the Contractor, who has the authority to
expend up to Five Thousand Dollars ($5,000) without prior approval in connection with the
maintenance and repair of the project. This limit does not extend to emergency repairs. The
Executive Director of the CDC is the key contact person and has CDC authority to act in
most matters.
It is the role and responsibility of the CDC to set specific policies in the areas of financial
matters, condition of the physical plan, tenant services, and the use of community agencies.
The CDC will meet with the Agent on a monthly basis to discuss, cash flow, budgets,
proposed expenditures and other fiscal matters. CDC members may visit the project
frequently to observe the condition of the physical plant. Because of their familiarity with
the community, CDC members are able to give help and guidance as to locally available
tenant services and community agencies.
Social services for the tenants will be under the direction of the Contractor. The resident
managers together with the Residents' Counselor will be familiar with local agencies to
which tenants with problems can be referred.
2. Personnel policy and staffing arrangements.
All hiring procedures of Contractor are, to the best of our knowledge, in conformity with
equal opportunity requirements. Residents of the projects for the elderly are not normally
interested in employment, however, where practical, project residents are considered for
employment. Staffing requirements call for a Maintenance Superintendent, Assistant
Superintendent, Resident Manager and Assistant Resident Manager (The Maintenance
Superintendent and Resident Manger divide their time equally between Morgan Tower and
Kimball Tower). Contractor will secureapproval from CDC for any additional staff deemed
necessary to efficiently operate the project. In interviewing staff applicants, strong
consideration is given to people willing to share an apartment who are able to work in
combination as a maintenance -management team. This has the dual effect of greatly aiding
staff cooperation and reducing the number of apartments required for staff use. In addition to
the above staff, the project shares the services of a social services director with Kimball
Tower.
Exhibit "A"
On -site employees will be considered employees of the Contractor. The Contractor will
process the payroll through its accounting system, and will be reimbursed in full for all direct
costs attendant to the employees including, but not limited to: payroll, FICA, Medicare,
unemployment insurance, and worker's compensation.
All staff is under the supervision of the Contractor. The Resident Manger has primary local
responsibility for tenant relationship and fiscal matters. The Maintenance Superintendent has
primary responsibility for the physical well being of the entire project and is also directly
responsible to the Contractor. Maintenance requests from residents will be given to the
Manager and directed to the Maintenance Department.
Compensation for the resident staff will be at or about the normal wages for this type of
work. Employees are given one week paid vacation after the first year, two weeks after the
second, third and fourth years, and three weeks thereafter.
Health insurance, dental insurance, and Ten Thousand Dollars ($10,000) of life insurance for
the Maintenance Superintendent, the Resident Manager, and other full time on -site staff
members (including those who share their time between Kimball and Morgan Towers) will
be arranged for by the Contractor and reimbursed as an Reimbursable Expense.
Employees are under frequent field supervision and their performance is regularly discussed
with them. If they have grievances, they are openly and fairly .discussed. If work
performance is not satisfactory, the problem is discussed with the employee and if no
solution can be worked out, the employee is terminated with two weeks' compensation. In
the event that termination is no fault of the employee, a two -week notice is given.
3. Tenant Selection Policy and Marketing Activities
Tenant selection procedure is based on requirements established by the CDC. To qualify for
residency, persons must meet age and income requirements. A copy of the Tenant Selection
Plan is attached hereto.
The Resident Manager conducts interviews of prospective residents. The Resident Manager
has the authority to rent to applicants that he/she believes meet all of the residency
requirements; however, if the Resident Manager feels that the person is not in sufficiently
good health, or does not qualify for other reasons, the matter is referred to the Contractor and
then, if necessary, to the Director of the CDC for a final decision.
4. Procedures for determining tenant eligibility and for certifying and recertifying income.
Thorough training of the Resident Manager is provided by the Contractor as to family size
and composition. Written evidence, as required by HUD for the Section 8 Program, is
obtained to verify tenants' income and all other eligibility requirements. Recertification of
income is obtained every year.
Page 2 of 5
5. Plans for carrying out an effective maintenance and repair program.
The Contractor retains maintenance personnel on behalf of the project who are
knowledgeable about the mechanical aspects of this type of facility and its equipment.
The maintenance personnel are responsible for preventive maintenance procedures for
heating systems, appliances, water systems, roof grounds, etc. Public areas of the project, i.e.
corridors, stairways, mechanical spaces, community areas, laundry room, parking spaces and
grounds are to be inspected by the maintenance personnel for cleanliness, defects or
obstructions, and corrected as needed. In addition, maintenance and service repair contracts
have been executed for technical inspections on a scheduled basis for the project facility.
Tenants are made familiar with the manner of operating the mechanical units in their
apartments through individual instruction by staff members, meetings of the Resident
Council, and visual displays, etc.
Apartments are inspected yearly and/or by request of tenant. Appliances, heating units, and
plumbing fixtures are checked as well as the general condition of the apartment, the paint, the
carpeting and draperies. Exterminating services for the project are on a monthly basis.
At the time of a tenant move -out, the apartment is surveyed and all needed repairs made. A
judgmental decision is made regarding whether and the apartment needs repainting.
Apartments are normally repainted on a five to six -year basis.
Trash removal is contracted by an outside firm.
Major repairs (in excess of $5,000) are made after securing bids from at least three competent
contractors and consultation with the CDC. Public bidding may be required. The contractor
is advised to contact the CDC before commencing with major repairs.
The majority of maintenance activities are handled by the resident maintenance staff. Tenant
requests for maintenance repairs are submitted to the project office, logged in, and turned
over to the maintenance staff for completion. The office keeps a copy of the request and
verifies that the work has been done. See attached schedule for general cleaning and
maintenance procedures.
6. Rent collection policies and procedures.
Rent is collected on -site during regular working hours at the office. Rent may be paid by
check or cash, or checks may be mailed through normal channels. Partial payments and pre-
payments are accepted provided the rent is kept current. No late fees are charged for
delinquencies. All receipts are recorded individually.
Page 3 of 5
If a due date for rent is missed, the tenant is contacted on the third day. If there is a
temporary problem, arrangements are made as necessary. If the resident has budgetary
problems, the manager will be able to refer him or her to a local social service agency.
In the event that a tenant falls more than thirty days in arrears or is creating difficulties for
other tenants that cannot be resolved, the problem is referred to the CDC. If all attempts to
solve the problem fail, a thirty -day eviction notice is given.
Tenants are charged a security deposit of one month's rent or $50, whichever is greater.
7. Program for maintaining adequate accounting records and maintaining necessary
forms and vouchers.
Accounts and records will be kept in accordance with the HUD handbook of FHA
Requirements Governing Fiscal Operations (Handbook 4371.1). All tenant certifications are
kept on file at the site. The Contractor will review invoices, prepare, sign and mailchecks,
and maintain a comprehensive system of books and accounts in its office. In accordance
with HUD Handbook 4381.5 Rev.-2, Pages 6-30, the Contractor will be compensated
separately for these functions.
The project's cash flow can be easily monitored by the accounting system. A detailed
schedule of all occupied units is prepared each month. The Contractor furnishes the Owner
monthly reports of receipts and disbursements.
The CDC will select a CPA firm to perform an annual audit and the Contractor will work
with the auditor.
8. Plans for tenant -management relations.
Tenants are oriented to the project during the leasing interview. At the time of move -in, a
Resident Guide (a handbook of tenant policies and procedures) is discussed and given to the
tenant. If necessary, a lease in a foreign language is provided. The lease is on a month -to -
month basis.
A Resident Council has been formed consisting of elected representatives from the project,
who in turn elect officers. The Resident Manager will attend Council meetings as an ex-
officio member. Although the function of this Council is primarily for tenant activities,
suggestions and complaints regarding the building can be channeled through the Council.
Individual tenant grievances can be brought to the manager, and in the event the manner
cannot be handled at that level, the Contractor, with the assistance of the Residents'
Counselor, will attempt to solve the problem. Problems that cannot be settled in that manner
will receive final consideration by the CDC.
Page 4 of 5
9. Social Services Program.
The project shares a part-time social director with Kimball Tower. This person organizes
and directs a variety of resident activities.
Arrangements have been made with the social service agencies serving seniors in the
National City area as to the method of referral and the resident manager is responsible for
those referrals. Special counseling services are provided by a Residents' Counselor under a
contract with a local Social Service Provider. The cost of these services is included in the
budget as an operating cost of the project. It is not intended that there will be any costs borne
by the Agent in this regard; costs would be billed to the project, and they would be
considered budgetary provisions to be approved by the CDC.
Page 5 of 5
RESOLUTION NO. 2006 — 214
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING
THE CHAIRMAN TO EXECUTE MANAGEMENT AGREEMENTS
WITH FALKENBERG/GILLIAM & ASSOCIATES FOR
THE MANAGEMENT OF MORGAN AND KIMBALL TOWERS
WHEREAS, the Community Development Commission (CDC) entered into
separate management agreements in 1999 with Falkenberg/Gilliam & Associates for the
management of Kimball Tower and Morgan Tower; and
WHEREAS, the terms of the current management agreements expire on October
3, 2006; and
WHEREAS, the CDC desires to contract with Falkenberg/Gilliam & Associates
for the management of Kimball Tower and Morgan Tower on a month -to -month basis.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the Chairman to execute
Management Agreements with Falkenberg/s3illiam & Associates for the management of Kimball
Tower and Morgan Tower. Said Agreements is on file in the office of the City Clerk.
PASSED and ADOPTED this 3rd day of October, 2006.
ATTEST.
Ch Zapa ecretary
APPROVED AS TO FORM:
George H. Eiser, III
Legal Counsel
Passed and adopted by the Community Development Commission of National City,
California, on October 3, 2006, by the following vote, to -wit:
Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: NICK INZUNZA
Chairman Co unity Development Commission
/ t
Secreta Commun ty velopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2006-214 of the Community Development Commission of the City
of National City, California, passed and adopted on October 3, 2006.
Secretary Community Development Commission
By:
Deputy
City of National City, California
COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT
MEETING DATE October 3. 2006
AGENDA ITEM NO 27
I. ITEM TITLE RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE AGREEMENTS WITH
FALKENBERG/GILLIAM & ASSOCIATES FOR THE MANAGEMENT OF MORGAN AND KIMBALL TOWERS
PREPARED BY George H. Eiser, III f DEPARTMENT City Attorney
Ext. 4221
EXPLANATION
For many years, Falkenberg/Gilliam & Associates have managed Morgan and Kimball
Towers. The current agreements between Falkenberg/Gilliam and the CDC to perfom
these services expires on October 3, 3006. The proposed resoltuion would extend those
agreements on a month -to -month basis.
Environmental Review N/A
Financial Statement
Falkenberg/Gilliam & Associates receives compensation based on a percentage of gross
collections from the Rental Agency Account.
Account No
STAFF RECOMMENDATION
Adopt resolution.
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS
Resolution
Agreerrents
•
Caco(o-ad
A-200 (9/80)
RESOLUTION NO. 2006 —
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING
THE CHAIRMAN TO EXECUTE MANAGEMENT AGREEMENTS
WITH FALKENBERG/GILLIAM & ASSOCIATES FOR
THE MANAGEMENT OF MORGAN AND KIMBALL TOWERS
WHEREAS, the Community Development Commission (CDC) entered into
separate management agreements in 1999 with Falkenberg/Gilliam & Associates for the
management of Kimball Tower and Morgan Tower; and
WHEREAS, the terms of the current management agreements expire on October
3, 2006; and
WHEREAS, the CDC desires to contract with Falkenberg/Gilliam & Associates
for the management of Kimball Tower and Morgan Tower on a month -to -month basis.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the Chairman to execute
Management Agreements with Falkenberg/Gilliam & Associates for the management of Kimball
Tower and Morgan Tower. Said Agreements is on file in the office of the City Clerk.
PASSED and ADOPTED this 19th day of September, 2006.
Nick Inzunza,Chairman
ATTEST:
Chris Zapata, Secretary
APPROVED AS TO FORM:
George H. Eiser, III
Legal Counsel
KIMBALL TOWER
MANAGEMENT AGREEMENT
This Agreement is made this 3rd day of October, 2006, between the Community Development
Commission of the City of National City (owner) hereinafter referred to as "CDC" and
Falkenberg/Gilliam & Associates, Inc. hereinafter referred to as "Contractor".
1. Definitions As used in this Agreement:
a. "Contractor" is Falkenberg/Gilliam & Associates, 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.
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.
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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 totheir 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:
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. The CDC has furnished the Agent with complete set of plans and
specifications and copies of all guaranties and warranties pertinent to construction,
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Management Agreement
fixtures, and equipment. 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.
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.
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
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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 naive 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
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Management Agreement
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 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 worker's compensation insurance)
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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.
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:
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.
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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, 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 (10th) 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.
g.
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.
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7
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.
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 defined as a "public project" under Section 20161 of the
Public Contract Code and which the CDC or the Director estimates will cost $5,000 or
more and for any other 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.
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3
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.
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. Commercial 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.
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9
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 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.
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 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.
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 October 3, 2006, until terminated.
a. Each such monthly fee will be in an amount equal to five point eight five percent
(5.85%) 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 one-fourth of
one percent (1/4%) (example: a fee of 5% of gross collections could be increased
to 5 '/ %) on the annual anniversary date of this Agreement with CDC approval.
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IC!
31. Term of Agreement. This Agreement shall be in effect on a month -to -month basis. This
Agreement is subject to the following conditions:
a. This Agreement may be terminated with or without cause by the City.
Termination without cause shall be effective only upon 30-day written notice to
the Contractor. During said 30-day period, the Contractor shall perform all
services in accordance with this Agreement.
b. 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.
c. 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.
d. 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.
e. Termination with or without cause shall be effected by delivery of written Notice
of Termination 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
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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.
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:
Brad Raulston, Executive Director
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4301
To Contractor:
Priscilla Gilliam, President
Falkenberg/Gilliam & Associates, Inc.
Page 12 of 14 Kimball Tower
Management Agreement
1,2
Post Office Box 7070
Pasadena, CA 91109-7070
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.
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.
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.
g.
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.
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13
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 madeby 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 FALKENBERG/GILLIAM &
OF THE CITY OF NATIONAL CITY ASSOCIATES, INC.
By: Nick Inzunza, Chairman By: Priscilla Gilliam, President
APPROVED AS TO FORM:
George H. Eiser, III
City/CDC Attorney
Attachments: Exhibit "A" - Management Plan
By:
Page 14 of 14 Kimball Tower
Management Agreement
MORGAN TOWER
MANAGEMENT AGREEMENT
This Agreement is made this 3rd day of October, 2006, between the Community
Development Commission of the City of National City hereinafter referred to as "CDC" and
Falkenberg/Gilliam & Associates, Inc. hereinafter referred to as "Contractor".
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 Falkenberg/Gilliam & Associates, Inc..
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.
£ "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.
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
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Management Agreement
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 Project No. 129-38013-PB-WAH-L8. 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 Contractor with copies of the Regulatory Agreement and the Housing Assistance
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t6
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. The CDC has furnished 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 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 leases will be in a form approved by the CDC and the
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7
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.
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 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
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Management Agreement
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.
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 Manger, a Social Services Director, and maintenance, bookkeeping, clerical, and
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Management Agreement
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 worker'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.
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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
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.
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g.
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.
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.
i. 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
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Management Agreement
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 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
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Management Agreement
a,�
times. The Contractor will pay premiums out of the Rental Agency Account, and
premiums 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. Commercial 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.
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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 16(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 October 3, 2006, until terminated.
a. Each such monthly fee will be in an amount equal to three and three quarters
percent (3.75%) 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 one-fourth of
one percent (1/4%) (Example: a fee of 5% of gross collections could be increased
to 5 '/4%) 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.
33. Term of Agreement. This Agreement shall be in effect on a month -to -month basis. This
Agreement is subject to the following conditions:
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a. This Agreement may be terminated with or without cause by the City.
Termination without cause shall be effective only upon 30-day written notice to
the Contractor. During said 30-day period, the Contractor shall perform all
services in accordance with this Agreement.
b. 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.
c. 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.
d. 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.
e. 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 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
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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:
Brad Raulston, Executive Director
Community Development Commission
of the City of National City
140 E. 12th Street, Suite B
National City, CA 91950
To Contractor:
Priscilla Gilliam, President
Falkenberg/Gilliam & Associates, Inc.
Post Office Box 7070
Pasadena, CA 91109-7070
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
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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.
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.
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.
g.
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.
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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 FALKENBERG/GILLIAM &
OF THE CITY OF NATIONAL CITY ASSOCIATES, INC.
By:
By: Nick Inzunza, Chairman Priscilla Gilliam, President
APPROVED AS TO FORM:
By:
Title
George H. Eiser, III
Legal Counsel
Attachment: Exhibit "A" - Management Plan
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City of National City
Office of the City Clerk
1243 National City Boulevard, National City, CA 91950-4397
Michael R. Della, CMC - City Clerk
(619) 336-4228 Fax: (619) 336-4229
October 25, 2006
Priscilla Gilliam, President
Falkenberg/Gilliam & Associates, Inc.
P.O. Box 7070
Pasadena, CA 91109-7070
Project: National City Community Development Commission — Management
Agreements - Morgan and Kimball Towers, Resolution No. 2006-
214
Dear Ms.Gilliam:
On October 17, 2006 the Community Development Commission of the City of
National City passed and adopted Resolution No. 2006 - 214, executing
Agreements for the management of the Morgan and Kimball Towers with
Falkenberg/Gilliam & Associates, Inc.
We are pleased to enclose a copy of the agreements and one certified copy of
the Resolution for your records.
Should you have any questions, please contact Mr. Brad Raulston, Executive
Director, Community Development Commission at (619) 336-4250.
Sincerely,
Michael R. Dall'a
City Clerk
MRD
Enclosure
cc: CDC
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