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15-0421_NEW TURTLE ISLAND_D13_Agenda Report�[?u 4/7/2015 ' i4pp Y 7 ✓ �.p .yam ,� TO: Karen P. FROM: Submitted by Prepared by: DATE: April 7, 2015 =0 C ries View, Development Services Directo(" ' Laura Stokes, Housing Coordinator/Assistant Planner1 SUBJECT: Consideration of First Amendment to the Personal Services Agreement for Grant Administration Services for the City's Owner Occupied Rehabilitation Loan Program (New Turtle Island) r r � By motion, approve a First Amendment to the Personal Services Agreement with New Turtle Island for administration of the City's Owner Occupied Rehabilitation Loan Program funded by the State of California HOME Program Grants, extending the term from March 31, 2015, until the date all services required are completed or until June 30, 2016, whichever is earlier and increasing the contract amount by $58,300, not to exceed $193,800 in total. EXECUTIVE SUMMARY: On July 17, 2012, the City entered into a Personal Services Agreement with New Turtle Island for grant administration services for the City's Owner Occupied Rehabilitation Loan Program (Attachment 1). The City's HOME and Community Development Block Grant funds are used to provide loans to lower income households for necessary home repairs (Owner Occupied Rehabilitation Loan Program). New Turtle Island has been providing excellent services including, but not limited to; screening grant applicants, inspecting condition of homes, reviewing construction repair proposals, conducting work completion inspections, and disbursing grant funds. Staff has found that New Turtle Island has the experience and expertise to administer the HOME Grants. As of March 15, 2015, the City has a balance of $390,000 in the State HOME and Community Development Block Grant fund, derived from program income from reimbursed loans, to continue the Owner Occupied Rehabilitation Loan Program. Staff originally anticipated the funds to be expended entirely by the end of March 2015, City Council Agenda Report April 7, 2015 Page 2of3 however, due to the unexpected number of Owner Occupied Rehabilitation loan payoffs, the City will be able to continue providing the programs to City residents. Staff recommends that the City Council approve the first amendment to the New Turtle Island personal services agreement by extending the term of the contract and increasing the not to exceed contract amount by $58,800 (total contract amount $193,800) (Attachment 2). 10MIMM111 Historically, the City obtained consulting services to administer the Owner Occupied Rehabilitation Loan Program, which encompasses multiple tasks including comprehensive income calculation and verification, through knowledge of State Building and Health and Safety codes for site inspections, loan document processing, and customer satisfaction services. In 2009, the City completed three Owner Occupied Rehabilitation projects using in-house staff. However, due to workloads and program demands, the City was unable to complete any additional projects. Since New Turtle Island was retained in 2012, the City has provided 29 loans. The City will need a consultant to ensure that the $390,000 from the previous paid -off loans are expended on new Owner Occupied Rehabilitation loans. New Turtle Island charges a standard administrative fee for overseeing these loans because their scope of work and time commitment is very similar regardless of the dollar amount of the individual rehabilitation loan. New Turtle Island provides a comprehensive program from initial screening to final approval of the finished work product. The services provided include working with the applicant through the loan qualification process to insure both the home and the resident are eligible for the project, inspecting the home to confirm the proposed rehabilitation work is eligible for the program, working with the resident through the construction phase including administration of payments to contractors, working with residents and contractors as needed to resolve concerns during the construction activities, and close-out of the construction contract. New Turtle Island does not receive their payment for administering the loan until the construction project is complete. The amount of time and attention a given home rehabilitation project may require is not necessarily reflected in the loan amount. As confirmed below, New Turtle Island's per loan charge is very competitive and represents a valuable service for the residents and the City. The State program guidelines allow for a maximum 24% charge for administering these loans and New Turtle Island's charges are well below that threshold. Staff supports amending the New Turtle Island agreement, as opposed to a new request for proposal, because of the following three reasons. First, the City currently has three loan applications in process, and providing an uninterrupted process is best for the applicants. Second, New Turtle Island has provided excellent services to the San Juan Capistrano residences, and is an efficient liaison between residents and the City. Finally, New Turtle Island's fee proposal was approximately 33% lower than the next closest bid in the 2012, and they have agreed to maintain the same low fee through the amendment. A comparison of the bids from 2012 has been included for reference (Attachment 3). Therefore, pursuant to Section 3-4.308 (e) of the City's Municipal Code, City Council Agenda Report April 7, 2015 Paae 3 of 3 staff recommends bypassing the formal request for proposal process. The City currently has $390,000 in funds for the Owner Occupied Rehabilitation program, and it is anticipated that the City will receive a minimum of $84,000 in Fiscal Year 2015-2016 from previous loans being paid -off to the City for a total of $474,000 being available. Staff expects between April 1, 2015, and June 30, 2016, approximately 21 loans will be provided. The consultant's grant administration cost is $2,800 per loan, which results in an additional $58,800 being added to the contract. Typical loans range between $15,000 and $20,000. An approval of amendment to personal services agreement is not considered a project and therefore not subject to review under the California Environmental Quality Act (CEQA). On April 17, 2012, the City Council approved the Request for Proposal for administration services for the City's HOME grants on April 17, 2012. On July 17, 2012, the City Council approved the Personal Service Agreement with New Turtle Island for Owner Occupied Rehabilitation Loan administration services. Not Applicable. New Turtle Island ATTACHMENTS: Attachment 1 - New Turtle Island Personal Services Agreement July 17, 2012 Attachment 2 - 1"Amendment to the Personal Service Agreement Attachment 3 - 2012 Bid Comparison PERSONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 17th day of July, 2012, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and New Turtle Island (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant regarding the City's proposal to continue grant administration of the State of California 2011 HOME Grants Owner Occupied Rehabilitation Program as described in the scope of works and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by the Consultant shall consist of those tasks as set forth in Exhibit "A," attached and incorporated herein by reference. To the extent that there are any conflicts between the provisions described in Exhibit "A" and those provisions contained within this Agreement, the provisions in this Agreement shall control. Section 2. Term. This Agreement shall commence on the effective date and shall terminate, and all services required hereunder shall be completed, no later than March 31, 2015. Section 3. Compensation. 3.1 Amount. Total compensation for the scope of services for this Project shall not exceed One Hundred Thirty -Five Thousand Dollars ($135,000.00). 3.2 Method of Payment. Subject to Section 3.1, Consultant shall submit monthly invoices based on total services which have been satisfactorily completed for such monthly period. The City will pay monthly progress payments based on approved invoices in accordance with this Section. ATTACHMENT 1 3.3 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to the City. Invoices shall be addressed as provided for in Section 16 below. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of the City, and shall obtain no rights to any benefits which accrue to Agency's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to the City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. Chancres to Scope of Work. For extra work not pari of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all teras of the new agreement, including but not limited to any additional Consultant's fees - Section 7. Familiarity with Mork and/or Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed: (2) if applicable, it has investigated the work site($), and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work to be performed under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform the City of this and shall not proceed with further work under this Agreement until written instructions are received from the City- Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Mork Product. At the completion of the work, Consultant shall have delivered to City at least one (1) copy of any final reports and/or notes or drawings containing Consultant's findings, conclusions, and recommendations with any supporting documentation. All reports submitted to the City shall be in reproducible format, or in the format otherwise approved by the City in writing. Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services_ Section 13. Indy, To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees, subcontractors, or independent contractors hired by Consultant in the performance of the Agreement. The only exception to Consultant's responsibility to protect, defend, and hold harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant. Section 14, Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration of the agreement, and provide proof thereof that is acceptable to the City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Consultant shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Consultant has also been obtained for the subcontractor. Insurance required herein shall be provided by Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A - Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement,. Consultant shall maintain in full force and effect Comprehensive General Liability coverage in an amount not less than one million dollars per occurrence ($1,000,000.00), combined single limit coverage for risks associated with the work contemplated by this agreement. If a Commercial General Liability insurance form or other fora with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this agreement or the general aggregate limit shall be at least twice the required occurrence limit. 14.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non -owned vehicles in an amount not less than one million dollars per occurrence ($1,000,000.00). 14.3 Workers' Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Workers' Compensation Employer's Liability Insurance in the statutory amount as required by state law. 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and volunteers as additional insured as respects each of the following: Liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 14.5 Errors and Omissions Coverage [FOR PROFESSIONS/WORK EXCLUDED FROM GENERAL LIABILITY] Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the City's General Counsel for certification that the insurance requirements of this Agreement have been satisfied. 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days` written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 14.7 Terms of Compensation. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 15. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days` notice to the ether party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 16. Notice. All notices shall be personally delivered or mailed to the below listed addresses, onto such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32100 Paseo Adelanto San ,loan Capistrano, CA 92675 Attn: Development Services- Housing To Consultant: New Turtle Island 951 West Princeton St Ontario, CA 92752 Attn: Patricia Piatt Section 17. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 18. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, the parties hereto have executed this Agreement. APPROVED AS TO FORM: Omar Sandoval, City Attorney CITY OF S TI JUAN CAPISTF�-ANO By: Larry Kramer, Mayor CONSULTANT In Patrick Batt, Owner New Tu t1e Island THIS FIRST AMENDMENT TO THE PERSONAL SERVICES AGREEMENT between the CITY OF SAN JUAN CAPISTRANO ("City") and New Turtle Island, ("Consultant") is made and entered into, to be effective the 31st day of March, 2015, as follows: RECITALS WHEREAS, the City and Consultant have entered into that Personal Services Agreement dated June 17th, 2012, for grant administration of the State of California 2011 HOME Grants Owner Occupied rehabilitation Program (the "Agreement"); and WHEREAS, the City and Consultant desire to amend the terms of the Agreement as provided hereunder. IffitT MAIM F4,1411 NOW, THEREFORE, in consideration of the promises and mutual covenants contained therein, City and Consultant agree to amend the following Sections of the Agreement as follows: Section 2. Terra. The term of the agreement shall be extended from March 31, 2015 until the date all services required hereunder are completed or until June 30, 2010, whichever is earlier. Section 3. Compensation. Total compensation for the scope of services for this Project shall be increased by Fifty - Eight Thousand Eight Hundred Dollars ($58,800) from an amount not to exceed One Hundred Thirty -Five Thousand Dollars ($135,000) to an amount not to exceed One Hundred Ninety - Three Thousand Eight Hundred Dollars ($193,800). All other provisions of the Agreement not amended hereunder shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS] -1- 54iA2a. E F-M 1-1191 i CITY OF SAN JUAN CAPISTRANO Derek Reeve, Mayor ATTEST: By: City Clerk APPROVED AS TO FORM: BY: City Attorney CONSULTANT Patrick Piatt, Owner New Turtle island _2- 54002� . f ATTACHMENT 3 Ca N t� c 0 N E U) c O U) us U ) Q) (D E C D D CD F C) C) p n N O w O N Icq N L - Z o LO m U cD c (� tp o c a o a = — 0 O c c It E U Q3 n W O N -0 N (U [U c N O O L U N Q Ri .� t O S] 'U) U d3 CJ � (IS p c i!) N m m L). i3 m p CB .-00 U O 'o U co O GAS C CD O c O c (D w -1 G7 O >, Ef} o E�} LL O m a a Ci a' U +•• o d Q c L) C3 U 43 "� Q CS O U "� (7 O - O a U N C (D° N CL O co i x s� ' L) a o ° - � ° -0 _Q � C) rs ci c c +� o . R c � =_ U Ef} X 0 C[5 o U {IJ c c X a L� -B -a Cr N F- w X cm L _ ca D O t{y c!5.2 --o � C O ID C3 Qi w U CL3 Lo EO O U CD C31 U 0 (D -0UN -0 C � m U m C3 O •O Q X Cj p C U> C) d z C) N d 00 co Q Ef} Efl b3 U (� (6 U Cl O z J s Ci :5 a. r (!J LU (-` z V) E (iS D U7 (D .a O V) U) «. m Q) ( N � cII O —M c ttS LL O W a) A 0) L7 ! U O N > (D Q3 t 43 O c� 0 O €z CD I: 2 o m(1) m© i- �� a 0� m Ui (n LL � U C C� U � E Q O U > N E O 03 0 tf} « ff3 U U Z z C a .y N ATTACHMENT 3