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CC Resolution 13179 - Authorizing City Manager to Execute BMR Housing Program Administrator Agreement with HouseKeys, Inc. • RESOLUTION NO. 13179 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL DISPENSING WITH THE BIDDING PROCEDURES AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE BELOW MARKET RATE HOUSING PROGRAM ADMINISTRATOR PROFESSIONAL SERVICES AGREEMENT WITH HOUSEKEYS, INC. WHEREAS, in June of 2016, the City Council selected HouseKeys to serve as the City's Below Market Rate (BMR) Housing Program Administrator and authorized the City Manager to execute a professional services agreement; and WHEREAS, the professional services agreement with HouseKeys has been annually renewed since that time; and WHEREAS, on June 20, 2023, the Council authorized the City Manager to execute a one-year contract with HouseKeys, Inc. to administer the City's Below Market Rate Program; and WHEREAS, the current one-year contract is set to expire on June 30, 2024; and WHEREAS, the cost of the Program is partially subsidized through the Administrator's collection of transaction fees charged to program participants (e.g., developers, applicants, homeowners, rental tenants, and lenders); and WHEREAS, the City Council- held a public meeting and approved the scope of work and proposed fee schedule as set forth as Attachment B to the City Council Staff Report dated June 18, 2024; and WHEREAS, the purchasing procedures outlined in the. City's Municipal Code (CMC) Section 3.20.050 state that purchases and contract for 'supplies, services, and equipment of estimated fair market value greater than fifty thousand dollars' shall be made according to specified bidding procedures; and WHEREAS, the flat rate administration fee for services to be provided by HouseKeys are $175,000 and HouseKeys also collects transition fees which are paid for by program participants; and WHEREAS, CMC Section 3.20.030 provides that the bidding procedures may be dispensed with when any one of eight potential circumstances are found to exist; and WHEREAS, the City Council has found the following two circumstances from CMC 3.20.030 to exist, thereby warranting the bidding procedures to be dispensed with: • The city seeks the special services, consultation or advice in financial, economic, accounting, engineering, legal, -administrative or other matters from persons specially trained, experienced and competent to perform the special services required; • The City Council, by a majority vote, determines that it is in the best interest of the public to dispense with the requirements of Section 3.20.050, in which case the City Council shall prescribe the appropriate method of purchase. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby dispenses with the bidding procedures specified in CMC Section 3.20.050 and authorizes the City Manager to execute a 12 month (expiring June 30, 2025) Professional Service Agreement with HouseKeys, Inc. in substantially the form and content set forth as Attachment B to the City Council Staff Report dated June 18, 2024. PASSED AND ADOPTED this 18th day of June, 2024, by the following roll call vote: AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None APPROVED J W)NT\ YCVirOVISusan M. Landry, ATTEST: Uf, Andrea Sar(diers, City Clerk • CITY OF CAMPBELL CONSULTANT SERVICES AGREEMENT This Agreement is entered into at Campbell, California on the 30th day of June,2024, by and between the CITY OF CAMPBELL (hereinafter referred to as "City") and HouseKeys Inc., a California Corporation(hereinafter referred to as "Consultant"). WHEREAS, City desires to obtain consulting services for the purpose of Below Market Rate Housing Program Administration; and WHEREAS, Consultant represents that it has the expertise, means, and ability to perform said Below Market Rate Housing Program Administration. NOW, THEREFORE, in consideration of each other's mutual promises, Consultant and City agree as follows: 1. DUTIES OF CONSULTANT 1.1 Consultant agrees to perform services as set forth in Exhibit A- Scope of Services, attached hereto and incorporated herein by reference, and which shall be interpreted together and in harmony with this Agreement. In the event of any conflict between Exhibit A and this Agreement, this Agreement shall govern, control,.and take precedence. 1.2 Consultant's project manager will meet with the City's project coordinator prior to commencement of the project to establish a clear understanding of the working relationships, authorities, and management philosophy of City as it relates to this Agreement. 1.3 Consultant, working with the City, will gather available existing information concerning the project, and shall review documents as necessary for compliance with the project's objectives. 1.4 In performance of this Agreement by Consultant, time will be of the essence. 1.5 Notwithstanding Section 1.4, Consultant shall not be responsible for delay caused by activities or factors beyond Consultant's reasonable control, including delays or by reason of strikes, work slow-downs or stoppages, or force majeure. 1.6 Consultant agrees to perform this Agreement in accordance with the highest degree of skill and expertise exercised by members of Consultant's profession working on similar projects under similar circumstances. 1.7 Consultant shall cooperate in good faith with City in all aspects of the performance of this Agreement. -1- 1.8 In the course of the performance of this Agreement,Consultant shall act in the City's best interest as it relates to the project. 1.9 The designated project manager for Consultant shall be Julius Nyanda. The Consultant's project manager shall have all the necessary authority to direct technical and professional work within the scope of the Agreement and shall serve as the principal point of contact with the City and the City's project coordinator. The authorized principal of Consultant executing this Agreement for the Consultant shall have authority to make decisions regarding changes in services,termination and other matters related to the performance of this agreement on behalf of Consultant. 1.10 The Consultant(and its employees, agents, representatives, and subconsultants), in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the City. The City shall not direct the work and means for accomplishment of the service's and work to be performed hereunder. The City,however,retains the right to require that work performed by Consultant meet specific standards consistent with the requirements of this Agreement without regard to the manner and means of accomplishment thereof Subcontractors shall assume all of the rights, obligations and liabilities, applicable to it as an independent contractor hereunder. Consultant represents and warrants that it (i) is fully experienced and properly qualified to perform the class of work and services provided for herein, (ii) has the financial capability and shall finance its own operations required for the performance of the work and services and (iii) is properly equipped and organized to perform the work and services in a competent, timely and proper manner in accordance with the requirements of this Agreement. 1.11 This Agreement contains provisions that permit mutually acceptable changes in the scope, character or complexity of the work if such changes become desirable or necessary as the work progresses.Adjustments to the basis of payment and to the time for performance of the work, if any, shall be established by a written contract amendment(approved and executed by the City) to accommodate the changes in work. 2. DUTIES OF CITY 2.1 City shall furnish to Consultant all available and pertinent data and information requested by Consultant to facilitate the preparation of the documents called for in this Agreement. Consultant shall be entitled to reasonably rely on all such information. 2.2 City shall provide contract administration services. City shall notify Consultant of required administrative procedures and shall name representatives, if any, authorized to act in its behalf 2.3 City shall review documents submitted by Consultant and shall render decisions pertaining thereto as promptly as reasonably possible. -2- 3. COMPENSATION 3.1 For the full performance of the services described herein by Consultant, City agrees to compensate Consultant for all services and direct costs associated with the performance of the project in an amount not to exceed$175,000 paid in monthly installments of$14,583.33 per month, as follows: a. Once each month, Consultant shall submit for payment by City, an itemized invoice for services performed during the previous billing period. The invoice shall describe the services rendered and the title of the item of work and shall list labor hours by personnel classification. Said invoice shall be based on all labor and direct expense charges made for work performed on the project. Labor charges shall be in accordance with the fee schedule found in Exhibit A of this Agreement. City shall pay Consultant for services rendered and approved by the City within 30 days from the date the itemized invoice is received by the City, subject to the maximum not to exceed amount specified. above and the City's right to object. Failure to provide an itemized invoice for services performed during the previous billing period may result in delays in processing the invoice. b. Direct costs are those outside costs incurred on or directly for the project and substantiated with invoices for the charges. Direct expenses include printing, reproduction, and delivery charges. 3.2 If Consultant incurs other costs which are not specifically covered by the terms of this Agreement,but which are necessary for performance of Consultant's duties,City may approve payment for said costs if authorized in writing by the City in advance. 3.3 City may order changes in the scope or character of services in writing, including decreasing the amount of Consultant's services. In the event that the work is decreased,Consultant is entitled to full compensation for all services performed and expenses incurred prior to receipt of notice of change. Under no conditions shall Consultant make any changes to the work, either as additions or deductions, without the prior written order of the City. In the event, that the City determines that a change to the work or services from that specified in this Agreement is required, the contract time and/or actual costs reimbursable by the City for the project may be adjusted by contract amendment or change order to accommodate the changed work. The maximum not to exceed total amount specified in this Article 3 (Compensation) shall not be exceeded, unless authorized by written contract amendment or change order, approved and executed by the City. Consultant shall obtain prior written approval for a revised fee schedule from the City before exceeding such fee schedule. 3.4 In no event,will the Consultant be reimbursed for any costs or expenses at any rates that exceed the rates for set forth in the fee schedule found in Exhibit B. -3- 4. SUBCONSULTANTS 4.1 Consultant may not subcontract any services required under this Agreement without the prior written consent of the City. 4.2 Consultant shall be responsible to City for the performance of any and all subconsultants who perform work under this contract, and any acts of negligence or misconduct on their part. Consultant is solely responsible for all payments due to subconsultants. 4.3 Nothing contained herein or otherwise shall require Consultant to obtain written approval by the City for the performance of certain duties under this Agreement by Consultant's related entities, including HouseKeys Services Corporation, a California corporation for brokerage and lending services and HouseKeys Resource and Education Center,Inc.,a California public benefit corporation, for housing and property acquisition and redevelopment activity in connection with this Agreement. Furthermore, Consultant's related entities shall not be considered subconsultants under this Agreement. 5. OWNERSHIP OF DOCUMENTS AND MATERIALS All original drawings,documents,papers, data,materials,photographs, negatives and other work products prepared by the Consultant and/or its subconsultants in the performance of the services encompassed in this Agreement(whether in printed or electronic format)("project-related documents and materials) shall be the property of the City and may be used on this project without the consent of the Consultant or its subcontractors. City acknowledges that such drawings, documents, and other items are instruments of professional services intended for use only on the subject project. Consultant agrees that all copyrights which arise from creation of the Proj ect- related documents and materials pursuant to this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. Upon the completion or termination of this Agreement for any reason, the.City shall be entitled to receive,and Consultant shall promptly provide to the City upon request,all finished and unfinished project-related documents and materials, produced or gathered by or on behalf of Consultant that are in Consultant's possession,custody or control. Consultant may retain copies of said documents and materials for its files. In the event of termination, any dispute regarding compensation or damages shall not hinder, prevent, or otherwise impact the City's right to promptly receive and use such documents and materials which are the sole and exclusive property of the City. 6. TERMINATION Notwithstanding any other provision of this Agreement,City may terminate this Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to Consultant of such termination. In the event of termination,the Consultant shall have the right and obligation to promptly assemble the work then in progress for the purpose of completing the work and delivering all materials and documents to the City. -4- 6.1. Termination Without Cause. To ensure a seamless transition and facilitate the recovery of fees earned for services rendered, a minimum notice period of six months shall be observed for any termination without cause. The Consultant shall be entitled to receive compensation for the services rendered and fees earned up until the termination date in accordance with the payment, provisions set forth in Section 3.1. 6.2 Termination With Cause. In the event of termination for cause, the Consultant need be compensated only to the extent required by law. 7. AUDIT AND INSPECTION Consultant shall permit authorized representatives of City to inspect and audit all data and records relating to its performance under this Agreement for a period of three years following acceptance of the final study. 8. EQUAL EMPLOYMENT OPPORTUNITY Consultant agrees to refrain from discriminatory employment practices on the basis of race, religious creed, color, sex, national origin, handicap, sexual orientation, or ancestry of any employee of, or applicant for employment with, such Consultant or subcontractor. 9. INSURANCE AND INDEMNIFICATION 9.1 The parties acknowledge that this Agreement does not involve any design professional services from the Consultant. With respect to all matters, Consultant agrees to indemnify, defend (with counsel reasonably satisfactory to the CITY) and hold harmless the CITY, its officers, officials, directors, agents representatives, volunteers, and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including but not limited to all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, caused by or arising out of, or alleged to have been caused by or arise out of, in whole or in part, Consultant's performance under this Agreement, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by: (a) Consultant ministerially carrying out the express written direction of the City involving no discretion on the part of the Consultant; (b) The sole negligence or willful misconduct of City. City shall not be liable for acts of Consultant in performing services described herein. In no event shall this section be construed to require indemnification by the Consultant to a greater extent than permitted under the public policy of the State of California; and in the event that this -5- contract is subject to California Civil Code section 2782(b), the foregoing indemnity provisions shall not apply to any liability for the active negligence of the City. Nothing contained in this provision shall be construed as relieving the Consultant from any obligation to provide indemnity or defense that was undertaken pursuant to any prior contract between the parties. The defense and indemnity provisions obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations contained in this Agreement. The foregoing indemnity provisions are intended to fully allocate the parties' risk of liability to third- parties; and there shall be no rights to indemnity or contribution, in law or equity or otherwise between the parties that are not set forth in this section. Consultant waives all rights to subrogation for any matters covered by the provisions of this section. Consultant's responsibility for such defense and indemnity obligations as set forth in this section shall survive the termination or completion of this Agreement for the full period of time allowed by law. 9.2 Consultant shall maintain insurance conforming to the following specifications to the fullest amount allowed by law for a minimum of two years following the termination or completion of this Agreement: A. Types of Coverage The policies shall afford the following types of coverage: 1. Commercial General Liability; 2. Automotive; 3. Workers' Compensation and Employer Liability; and • 4. Professional Liability and/or Errors and Omissions B. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. For Commercial General Liability: Insurance Services Office (ISO) CGL Form 00 01 11 85; and 2. For Automotive Liability: ISO CA 00 01 06 92 including symbol 1(any auto); and 3. For Workers' Compensation: insurance as required by the Labor Code of the State of California and Employer's Liability insurance; and -6- • 4. For Professional Liability and/or Errors and Omissions: insurance covering negligence committed by or on behalf of Consultant in rendering services to City. C. Minimum Limits of Insurance Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily,personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employer's Liability limits of$1,000,000 per accident. 4. Professional Liability and/or Errors and Omissions: $1,000,000 per claim and $2,000,000 in the annual aggregate. The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City (as agreed to in this Agreement) before the City's own insurance or self-insurance shall be called upon to protect it as a named insured. D. Deductible and Self-Insured Retention Any deductibles or self-insured retention must be declared to and approved by the City, and shall not reduce the limits of liability. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City, its agents, officers, attorneys, employees, officials and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses related to investigations, claim administration, and defense expenses. Policies containing any self-insured retention provision shall provide or be endorsed to provide that the self-insured retention may be satisfied by either the named insured or the City. E. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverage: -7- • • a. The City, its agents, officers, attorneys, employees, officials and volunteers are to be covered as additional insureds as respects: liability arising out of this Agreement performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, leased, hired or borrowed by the Consultant. It is a requirement of this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth in this Agreement shall be available to the City as an additional insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage limits specified in this Agreement, or(2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is affords greater coverage. b. The Consultant's insurance coverage shall be primary insurance as respects the City,its agents, officers, attorneys, employees,officials and volunteers. Any insurance or self-insurance maintained by the City, its agents, officers, attorneys, employees, officials and volunteers shall be excess of the Consultant's insurance and shall not contribute with it. • c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its agents,officers, attorneys, employees, officials, and volunteers. d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employer's Liability Coverage: The insurer shall agree to waive all rights of subrogation against the City, its agents, officers, attorneys, employees, officials, and volunteers for losses arising from work performed by the Consultant for the City. 3. All Coverages: Any unintentional failure to comply with reporting provisions of the policies shall not affect coverage provided to the City; and unless otherwise approved by the City, each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty(30)days prior written notice by regular mail has been given to the City,or ten(10)days for cancellation for non-payment of premium. E. Suspension or Cancellation If any of the coverages required by this Agreement should be suspended, voided, cancelled or reduced in coverage during the term of this Agreement, Consultant shall immediately, notify City and replace such coverage with another policy meeting the requirements of this -8- Agreement. F. Subcontractors Consultant agrees that any and all contracts with subcontractors for performance of any matter under this Agreement shall require the subcontractors 'to comply with the same indemnity and insurance requirements set forth in this Agreement to the extent that they apply to the scope of the subcontractors' work. Subcontractors are to be bound to contractor and to City in the same manner and to the same extent as the Consultant is bound to City under this Agreement. Subcontractors shall further agree to include these same provisions with any sub-subcontractor. A copy of this Agreement will be furnished to the subcontractor on request. The Consultant shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the Agreement prior to commencing any work, and will provide proof of compliance to the City. G. Acceptability of Insurers Without limiting Consultant's indemnification provided hereunder, the policies of insurance listed in Article 9.2 of this Agreement are to be issued by an issuer with a current A.M. Best Rating of A:V and who is authorized to transact business in the State of California, unless . otherwise approved by the City. H. Verification of Coverage Consultant shall furnisll the City with endorsements and certificates of insurance evidencing coverage required by this clause. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be on forms acceptable to the City. Where required by statue, forms approved by the Insurance Commissioner are to be submitted. All certificates are to be received and approved by the City before work commences. 10. MISCELLANEOUS 10.1 This Agreement shall be binding on the heirs, executors, assigns and successors of Consultant. 10.2 Neither party may assign this Agreement, or any portion hereof, without the prior written consent of the other. 10.3 This Agreement shall not be construed to alter, affect, or waive any lien or stop notice rights, which Consultant may, have for the performance of services pursuant to this Agreement. 10.4 Neither party's waiver of any term, condition or covenant, or breach of any term, condition or covenant shall be construed as the waiver of any other term, condition or covenantor waiver of the breach of any other term, condition or covenant. -9- 10.5 This Agreement contains the entire Agreement between City and Consultant relating to the project and the provision of services to the project.Any prior agreements,promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. Subsequent modifications to this Agreement shall be in writing and signed by both City and Consultant. 10.6 If any term,condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid,void, or unenforceable,the remaining provisions of this Agreement shall be valid and binding on City and Consultant. 10.7 This Agreement shall be governed and construed in accordance with the laws of the State of California. .10.8 This Agreement may be executed in counterparts and will be binding as executed. 10.9 All changes or amendments to this Agreement must be in writing and approved by all parties. 10.10 The term of this Agreement shall commence upon execution of the Agreement and terminate on June 30, 2024. Any extension of the Agreement shall be mutually agreed upon in writing and shall require an amendment to the Agreement signed by both parties. .10.11 Consultant owes the City a duty of undivided loyalty in performing the work and services under this Agreement, including,but not limited to,the obligation to refrain from having economic interests and/or participating in activities that conflict with the City's interests in respect to the work and/or services and project. The Consultant shall list current clients who may have a financial interest in the outcome of this Agreement. The Consultant hereby certifies that it does not now have, nor shall it acquire any financial or business interest that would conflict with the performance of services under this agreement. Consultant shall not make or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a direct or indirect financial interest other . than the compensation promised by this Agreement. Consultant will immediately advise the City if Consultant learns of a financial interest of Consultant's during the term of this Agreement. 10.12 This Agreement is entered into, and to be performed in Santa Clara County, California,and any action arising out of or related to this Agreement shall be maintained in a court of appropriate jurisdictipn in Santa Clara County, California. 11. NOTICES Notices required under this Agreement may be delivered by first class mail addressed to the appropriate party at one of the following addresses: CITY: City of Campbell Attention: City Manager 70 North First Street -10- Campbell, CA 95008 CONSULTANT: HouseKeys Inc. Attn.: Julius Nyanda 409 Tennant Station Ste..495 Morgan Hill, CA 95037 Having read and understood the foregoing Agreement, the undersigned parties agree to be bound hereby: CONSULTANT By: Julius Nyanda CEO, HouseKeys Inc. CITY OF CAMPBELL By: Brian Loventhal City Manager Exhibit A—Scope of Services Exhibit B—Fee Schedule -11- EXHIBIT A - SCOPE OF SERVICES 2024-2025 BMR ADMINISTRATOR - HOUSEKEYS The Scope of Work details the roles and responsibilities of the City and Consultant The Schedule starts from the date the contract is fully executed by both parties. 1. Consultant will administer the program and assure BMR Deed Restrictions are recorded and followed by all parties as applicable for each property. 2. Consultant will provide offsite support for service requests. Orientations and workshops will be held in the City of Campbell. 3. Consultant will update BMR guidelines and program materials annually in conjunction with City staff to reflect the Consultant's administrative process for BMR Administration including, but not limited to: applications, program pamphlets, resale calculations, buyer selection process, sale and resale of units, refinancing requests, collection of City fees and other applicable fees, and default monitoring/resolution process. 4. Consultant shall prepare updates to the BMR Owner/Application Participation Guide (to add a reference to the pricing procedures, repair requirements, and clarify recertification requirements) and BMR Rental Application/Participation Guide (to clarify the maximum number of occupants allowed in a studio unit, clarify recertification requirements, and include options for participants to exceed-income limits) for future consideration by the Council by December 31, 2024. • 5. Consultant will maintain a•BMR program website presence that will link to the City's housing website. 6. Consultant will conduct annual recertification / monitoring of rental and ownership below market rate program units providing 30 days to submit recertification packages. 7. Consultant shall update pricing guides for below-market rate rental and homeownership units annually within 30 days of publication of annual income limits by the California Department of Housing and Community Development (HCD). 8. Consultant and the City have agreed to the following mutually acceptable performance measures for BMR program administration. These measures shall be included in the quarterly BMR summary report. a. General Inquiries: Respond within 48 business hours. b. Loan Requests: Respond within 48 business hours. Complete requests within reasonable time, with weekly status updates for outstanding requests. c. Orientations: Minimum 6 per year, with more as needed for new opportunities. d. Rental Vacancies: Fill vacancies within 60 days. • EXHIBIT A - SCOPE OF SERVICES 2024-2025 BMR ADMINISTRATOR - HOUSEKEYS e. Follow up letters sent at 60 and 90 days after the initial request for recertification packages before beginning enforcement'procedures. f. Eligibility List: Maintain a minimum buyer-to-property ratio of 5:1. g. Application ID issuance: Issue upon receipt of request. h. City/Consultant Coordination: Consultant shall schedule a regular monthly coordination meeting with City staff. 9. Consultant shall maintain the City's existing records, databases, and files through a file retention and management system for the program. All electronic records will be considered work products that are property of the City of Campbell. The Consultant shall update the City's records quarterly to ensure a coordinated seamless record- keeping process. Database access shall be provided to City staff directly involved in the BMR program administration. The database shall include the following at a minimum: a. For each BMR/ RDA Development (new and existing): 1) A list of all BMR/ RDA units in the development 2) The date of the BMR/ RDA developer agreement 3) BMR/ RDA units lost, including date, reason for loss, initial sales price, resale price, and actions taken b. For each owner unit (new and existing): 1) The address for each ownership unit 2) The level of affordability (e.g., Very Low, Low, Moderate) 3) The current owner of record 4) The expiration date of the owner agreement 5) The last date of recertification 6) The recertification status (updated annually) 7) The original sales price • 8) The current resale restriction price 9) Dates of owner turn-over, as applicable c. For each renter unit (new and existing): 1) The unit number for each rental unit 2) The level of affordability (e.g., Very Low, Low, Moderate) 3) The current tenant of record 4) The last date of recertification 5) The recertification status (updated annually) d. For each affordable housing loan: 1) The type of loan (e.g., RDA, BEGIN, FTHB, etc.) 2) The address associated with the loan 3) The current owner of record (this should be the loan recipient) • EXHIBIT A - SCOPE OF SERVICES 2024-2025 BMR ADMINISTRATOR - HOUSEKEYS 4) The amount, term, and due date of the loan 5) dates of payoff and interest collected, as applicable 6) dates of refinance/subordination, as applicable 7) dates of write-off and amount, as applicable e. Other information as requested and mutually agreed to. 10.Consultant shall provide a quarterly BMR summary report to the City on the following dates and with the following information, consistent with task#8 and #9: Q1 (July— Sept): End of October Q2 (Oct— Dec): End of January Q3 (Jan — March): End of April • Q4 (April —June): End of July a. Performance Measures (see task#8) b. For each owner unit (new and existing): 1) The address for each ownership unit 2) The level of affordability (e.g., Very Low, Low, Moderate) 3) The current owner of record 4) The last date of recertification and current recertification status c. For each renter unit (new and existing): 1) The unit number for each rental unit 2) The level of affordability (e.g., Very Low, Low, Moderate) 3) The current tenant of record 4) The last date of recertification and current recertification status d. For each affordable housing loan: 1) The type of loan (e.g., RDA, BEGIN, FTHB, dtc.) 2) The address associated with the loan 3) The current owner of record (this should be the loan recipient) 4) The amount, term, and due date of the loan 5) Dates of payoff and interest collected, as applicable 6) Dates of refinance/subordination, as applicable 7) Dates of write-off and amount, as applicable e. Current list of defaults and pending defaults 1) Actions taken to date 2) Next steps, including dates f. In-lieu fees collected, if applicable g. Other information as requested and mutually agreed to • • EXHIBIT A - SCOPE OF SERVICES 2024-2025 BMR ADMINISTRATOR - HOUSEKEYS 11.Consultant will provide the applicants with the following services: a. Conducting income qualifications including review of assets, income, verifications of employment and all other necessary approvals to ensure qualification for the City loans. b. Making minor revisions to the City's existing program materials and legal documents. c. Underwriting loan applications in accordance with program requirements. d. Preparing all loan documents, overseeing proper execution thereof, and conducting final loan approval reviews. e. Ensuring timely delivery of all necessary documents into escrow, and preparing escrow demands and funding requests. f. Overall management and implementation of specific program policies, including required reporting. g. Preparation of program materials by revising the City's current documents. h. Calculating all pay off demands and issuing any disclosures and tax forms as required by State and/or Federal Law. i. Calculating the resale value of all BMR homes as requested annually by the County. j. Work with City staff to ensure a seamless and coordinated development of documents as it relates to the BMR Program, including the RDO application process where BMR units are included, reviewing developer agreements, and ensuring that BMR requirements are outlined in an Affordable Housing Agreement and any subsequent amendments to the development documentation. 12.Consultant shall act as transaction coordinator for all real estate transactions and will provide the City with a fee schedule. Consultant will charge BMR re-sale transaction fees in line with applicable recorded Deed Restrictions. Consultant will charge the developer transaction coordination fees in accordance with the Affordable Housing Agreement pertaining to the subject development project. 13. Consultant will coordinate document transmittals between buyers, homeowners, developers, and City as needed. Consultant will be responsible for ensuring all documents submitted for City signatures are complete and accurate. Consultant will be responsible for making any necessary corrections to documents. 14. Consultant shall work alongside Staff to conduct monitoring to annually evaluate BMR owners' & renters' compliance with the terms and conditions of the BMR recorded deed restrictions and program guidelines including the following: EXHIBIT A - SCOPE OF SERVICES 2024-2025 BMR ADMINISTRATOR - HOUSEKEYS a. Mailing monitoring letters to all the BMR units. b. Reviewing in conjunction with City staff, City or County Assessor data to assist in the process (e.g., water utility bills, property records). c. Review City's preliminary monitoring list to identify follow up actions required. d. Meet with City staff to develop guidelines for acceptable default remedies (e.g., allowing rental of BMR units for hardship cases). 15. Consultant shall work alongside Staff to investigate and identify cure for potential BMR defaults including: a. Conduct follow up of those BMR owners who do not submit their compliance documentation. b. Reviewing information from calls from BMR neighbors and interested parties. c. Conduct reasonable follow-up investigation to assess potential BMR defaults including unit site visits. d. Scheduled appointments with BMR owners. • e. For confirmed defaults, provide owners with list of actions needed to remedy the default and conduct follow-up to monitoring compliance. f. Maintaining log of actions taken to remedy the defaults. g. For those defaults in which the owners choose to not remedy the situation within a reasonable amount of time, Consultant will meet with City staff to determine the course of action to pursue. City authorization will be sought for any legal action taken. ' h. City will provide a list of any current BMR defaults and actions taken to date. 16. Consultant shall conduct introductory Home Buyer Education/Training classes — HomeBuyer Orientation Classes prior to BMR application 17. Consultant shall build and maintain a group of local (live or work in the City of Campbell) qualified and eligible BMR homebuyers at a minimum Buyer-to-Property ,ratio of 5:1 , 18. Consultant will partner with the City to create City legal templates for documents required for signature by the BMR participants. Consultant shall supply document's that are typically used in Santa Clara County for residential real estate transactions (e.g. purchase and sale, disclosure acknowledgements, addendums, etc.) 19. Consultant will maintain a list of approved loan officers and lending operations eligible to provide mortgage lending for purchase and refinance transactions • 20. Consultant will review individual BMR restrictions for terms and requirements as EXHIBIT A - SCOPE OF SERVICES 2024-2025 BMR ADMINISTRATOR - HOUSEKEYS needed including shared equity programs, down payment assistance loans and any resale restriction agreements. 21. Consultant will prepare City staff reports related to the BMR program, including the following: a. Contract Renewal and Program Update Report I Draft due to City staff: March 31, 2025. b. Compliance Program Update Report I Draft due to City staff: August 31, 2025. • • EXHIBIT B — FEE SCHEDULE 2023-2024 BMR ADMINISTRATOR - HOUSEKEYS Description Feel Fee Cap / Max Billed To Program Administration $175,000 /year ($14,583.33/month) City Loan Processing $1,250.00 per $1,250.00 per Transaction Fee transaction2 transaction Owner/ Lender New BMR Sales 3% of Maximum Buyer (via Transaction Fee Sales Price $18,000.00 Sales Price) BMR Resale (compliant) 6% of Maximum Buyer (via Transaction Fee New Sales Price $36,000.00 Sales Price) Acquisition (default)and 5% of Resale BMR Resale / Rehab Restriction Price Maximum Buyer (via Transaction Fee plus 5% of $60,000.00 Sales Price) New Sales Price Application I.D. No fee No fee n/a Issuance Participant I.D. No fee No fee n/a Issuance , Opportunity Drawing (Lottery) Entry Fee $25.00 $25.00 Applicant Application Fee $75.00 $75.00 Applicant Billing Rate for Projects Outside of Contract Scope $250.00 / hour $250.00 / hour City • . I 1 Fees may be lower pursuant to the relevant executed Agreement (e.g., developer agreement, owner resale restriction agreement, promissory note, etc.) 2 25%of the$1,250 loan processing fee($312.50)paid by the owner/lender will be transferred to the City for administration and internal processing of the subordination/payoff request.