FROM:
Housing
SUBJECT:
Title
Approve Amendment No. 4 to Professional Service Agreement with Quality Management Group (QMG) for Property Management Services in conjunction with city-owned properties.
End
RECOMMENDATION:
Recommendation
1. Approve and authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement SP-15-HD-22 for professional property management services in the additional amount of $65,000 for a total not to exceed $165,000.
2. Approve and authorize the City Manager to execute any future amendments to the contract with Quality Management Group (QMG) for professional property management services.
End
COUNCIL GOALS:
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by acquisition, substantial rehabilitation, and professional management of selected multi-family properties to provide more affordable units and reduce crime and code enforcement activity.
DISCUSSION:
In October 2021, the City solicited proposals for property management services to support the expanding portfolio of properties acquired by the Housing Department. Following a competitive selection process, the City executed a five-year contract with Quality Management Group (QMG) to provide comprehensive property management services for these properties. The contract was established at an annual amount of $89,000 to cover the management needs of existing properties in the portfolio.
As part of the City’s ongoing efforts to address affordable housing, the Housing Department has recently acquired the Aldea Legacy Apartment Community, a 78-unit complex dedicated to housing families earning 60% or less of the Area Median Income (AMI). This acquisition brings significant operational demands that exceed the scope of the original contract with QMG, necessitating an increase in the professional services agreement to cover the expanded responsibilities.
The current contract of $89,000 annually will need to be increased by $81,000 per year to manage the additional units at Aldea, bringing the new annual contract total to $170,000. This increase ensures that QMG has the necessary resources to maintain the high level of service expected by the Housing Department while adhering to regulatory requirements for affordable housing.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is $65,000, increasing the total annual contract amount to $165,000 and is not included in the current 2024-25 Budget. The costs associated with this contract are fully funded through the rents collected and the necessary budget adjustments will be included in the 2024-25 First Quarter Budget Report.
MOTION:
Approve Staff Recommendation