CC Resolution 13011 - Approving the BMR Housing Program AgreementRESOLUTION NO. 13011
BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CAMPBELL DISPENSING WITH THE BIDDING PROCEDURES,
APPROVING THE BELOW MARKET RATE HOUSING PROGRAM
ADMINISTRATOR PROFESSIONAL SERVICES AGREEMENT WITH
HOUSEKEYS, INC., AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AGREEMENT
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 7, 2022, 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, 2023; 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 included with this resolution as Exhibit A; 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 $205,000 and HouseKeys also collects transition fees which are paid for by program
particippnts; 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,
approves a 12 month (expiring June 30, 2024) professional service agreement with
HouseKeys, Inc. as more fully detailed in Exhibit A of this resolution, and authorizes the
City Manager to execute the agreement.
PASSED AND ADOPTED this 20th day of June, 2023, by the following roll call vote:
AYES: COUNCILMEMBERS: Lopez, Scozzola, Furtado, Landry, Bybee
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
APPROVED:
Anne ybee, Mayor
ATTEST: 111M64W. ���
Andrea Sand s, City Clerk
CITY OF CAMPBELL
CONSULTANT SERVICES AGREEMENT
This Agreement is entered into at Campbell, California on the 301" day of June, 2023, 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.
1.8 In the course of the performance of this Agreement, Consultant shall act in the
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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 services 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.
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
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of the project in an amount not to exceed $205,000 paid in monthly installments of 17,083.33 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.
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. However,
Consultant may retain outside legal counsel from time to time, without prior written consent by
the City, to assist Consultant with legal matters within the scope of this Agreement, so long as
outside legal fees are at the Consultant's sole.
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.
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
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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.
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 Project -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.
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.
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.
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.
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 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.
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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 l (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
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:
General Liability and Automobile Liability Coverage:
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
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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 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-
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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 furnish 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 covenant
or waiver of the breach of any other term, condition or covenant.
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.
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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 jurisdiction 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
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:
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CONSULTANT
Julius Nyanda
CEO, HouseKeys Inc.
CITY OF CAMPBELL
I:
Exhibit A — Scope of Services
Exhibit B — Fee Schedule
Brian Loventhal
City Manager
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EXHIBIT A - SCOPE OF SERVICES 2023-2024
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.
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 regularly update BMR guidelines and program materials 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.
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.
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 2023-2024
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.
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. 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)
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
EXHIBIT A - SCOPE OF SERVICES 2023-2024
BMR ADMINISTRATOR - HOUSEKEYS
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 #5 and #6:
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 #5)
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, etc.)
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
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.
EXHIBIT A - SCOPE OF SERVICES 2023-2024 .
BMR ADMINISTRATOR - HOUSEKEYS
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:
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.,
EXHIBIT A - SCOPE OF SERVICES 2023-2024
BMR ADMINISTRATOR - HOUSEKEYS
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 documents
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
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:
EXHIBIT A - SCOPE OF SERVICES 2023-2024
BMR ADMINISTRATOR - HOUSEKEYS
a. Contract Renewal and Program Update Report I Draft due to staff: End of
March.
b. Compliance Program Update Report I Draft due to staff: End of August.
EXHIBIT B — FEE SCHEDULE 2023-2024
BMR ADMINISTRATOR - HOUSEKEYS
Description
Fee'-
Fee Cap / Max
Billed To
Program Administration
$205,000 / year ($97,083.33/month)
City
Loan Processing
$1,250.00 per
$1,250.00 per
Owner/ Lender
Transaction Fee
transactionz
transaction
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
$25.00
$25.00
Applicant
(Lottery) Entry Fee
Application Fee
$75.00
$75.00
Applicant
Billing Rate for Projects
$250.00 /hour
$250.00 /hour
City
Outside of Contract Scope
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.