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CC:HA -Approval of a Professional Services Agreement with InPark Sales, LLC for the Removal, Transfer, Purchase and Installation of Mobile Homes on an As-Needed Basis in an Amount Not-to-Exceed $300,000.
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Meeting Date: August 10, 2020
Contact Person/Dept: Tevis Barnes/CDD-Housing
Phone Number: (310)253-5782
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: Committee on Homelessness (07/28/2020); Landlord Tenant Mediation Board (07/29/2020); Culver City Terrace; InPark Sales/Les Frames Management; (08/05/2020); and (E-Mail) Meetings and Agendas - City Council (08/05/2020).
Department Approval: Sol Blumenfeld, Community Development Director (08/03/2020)
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RECOMMENDATION:
Staff recommends the City Council and Culver City Housing Authority (Authority) Board approve a professional services agreement with InPark Sales, LLC for the removal of mobile homes deemed uninhabitable and the transfer, purchase and installation of new replacement mobile homes in an amount not-to-exceed $300,000.
BACKGROUND:
On December 12, 2018, the City Council and Authority Board approved the creation of the Mobile Home Replacement Program for Seniors and Disabled Persons and approved program eligibility guidelines.
As part of the 2020/2021 Fiscal Year budget process, $300,000 was allotted in the Housing Division budget for the implementation of the Mobile Home Replacement Program for Seniors and Disabled Persons.
DISCUSSION:
The Mobile Home Replacement Program for Seniors and Disabled Persons (Program) focuses on preventing homelessness among seniors and disabled persons suffering from severely dilapidated living conditions as a result of hoarding, where their housing is at risk. The Culver City Enforcement Services Division (Enforcement Services) received 20 hoarding complaints during the 2019/2020 Fiscal Year.
In cases involving low income seniors and/or disabled persons who may have minimal to no financial or family support, these individuals may be at risk for homelessness. This is especially problematic for mobile homeowners who are simply renting space and do not own the real property where the mobile home unit is located. In many cases, the mobile home unit is old, outdated and has no market value. The Program provides some level of protection for these vulnerable households.
The Housing Division and Enforcement Services Division are currently assisting two approved Program participants. There are two pending applicants currently working with Enforcement Services staff to address hoarding issues and correcting health and safety violations. The requested appropriated funding will assist up to three Program participants. A maximum of $100,000 is available per Program participant in the form of a zero-interest deferred loan.
Program Eligibility Requirements:
The following are the eligibility criteria for the Program. Additional Program terms and conditions are detailed in Attachment 1.
1. Applicant must be a Culver City Resident;
2. Applicant must be a Senior Citizen (62 or older) or Disabled Head of Household;
3. Applicant income must not exceed the moderate-income limit for their household size as defined by California Redevelopment Law (CRL);
4. Applicant must have no assets in excess of the amount needed to cover expenses related to the purchase of a mobile home;
5. Applicant must be the mobile homeowner with clear title and updated registration with the State of California;
6. The mobile home must be determined to be uninhabitable by Enforcement Services, Building Safety and Fire Prevention Divisions;
7. Proof of the applicant’s age will be verified with birth certificates and government issued identification;
8. Disability status will be evidenced through an applicant being a recipient of Social Security Disability (SSDI), or verified in a written statement from a licensed physician in the State of California; and
9. Income will be verified through banking statements, credit checks, paycheck stubs, Social Security and pension statements and other forms of verification deemed necessary by the Housing Division, such as tax returns and profit and lost statements.
InPark Sales/Les Frame Management
Staff is recommending entering into a professional services agreement with InPark Sales, LLC in an amount not to exceed $300,000 to assist up to three Program participants. As a manufactured homes dealership, InPark Sales is responsible for planning, designing, purchasing, and installation of new mobile homes. Inpark Sales is a California Limited Liability Company (LLC) and holds two licenses: 1) a Manufactured Home Dealership Occupational license from the State Department of Housing and Community Development (HCD), # DL927; and 2) an Occupational License to sell “Park Models” from the State’s Department of Motor Vehicle (DMV), # 50721. The scope of work will include the removal of mobile homes deemed uninhabitable and the transfer, purchase and installation of new replacement mobile homes.
InPark Sales services are supplemented by the mobile home community management company Les Frame Management (LFM). Les Frame Management is the mobile home community management division of InPark Sales. Les Frame Management professionally manages over forty manufactured home communities for over three decades and is familiar with the nuances of mobile home regulations and , mobile home park operations. Les Frame Management operates mobile home parks that range in size from 46 spaces to 440 spaces.
Culver City Terrace is a Resident Owned mobile home community of 118 mobile homes located in Culver City. It is one of the only two mobile home communities in the City. Through an agreement with the former Culver City Redevelopment Agency (CCRA), Culver City Terrace secured funds to purchase the park to establish as a Resident Owned community. As a result of CCRA financial assistance, there are 81 very-low, low and moderate income covenanted affordable units in the park. Les Frame Management has operated Culver City Terrace on behalf of the homeowner’s association since the association’s inception in 1990. The City has worked with LFM for three decades while overseeing park management during the monitoring of affordability covenants. In addition, Housing and Enforcement Service Division staff has worked with LFM over the years to address several mobile home units impacted by hoarding. InPark Sales and Les Frame Management are the sole proprietor over the removal and installation of new mobile homes at Culver City Terrace.
Scope of Work
InPark Sales will carry out the following activities as part of the scope of work to implement the Program:
1. Removal of existing mobile home unit and clean-up of site space;
2. Replace the unit with a base priced “Skyline Palm Haven” mobile home;
3. Transportation of new unit from factory to site for placement; and
4. Lot preparation per State of California Housing and Community Development (HCD) requirements including permit, set up, tie down, utilities connection, skirting, disabled access ramp (if applicable) and covers over each unit entry.
Pursuant to Culver City Municipal Code Section 3.07.065.A, the professional services provided by InPark Sales are exempt from formal competitive bidding procedures; provided the agreement is based upon competitive quotations, whenever practical, as determined by the City Manager. In this instance, the City Manager has determined it is not feasible to acquire competitive quotations as InPark Sales is the sole provider of mobile home removal and installation at Culver City Terrace within the City’s service area. Additionally, InPark Sales is uniquely familiar and knowledge of Culver City Terrace through its park management division for thirty years. Therefore, staff recommend the City’s enter into an agreement with the vendor for this service.
FISCAL IMPACT:
A total of $300,000 is earmarked in the Fiscal Year 2020/2021 Housing Budget (476) for the Program. These funds are allocated from LMIHAF and will not impact the City General Fund. The maximum amount available to for each Program participant to purchase a mobile home will be set at $100,000 in the form of a zero-interest deferred loan. Funds to support the Program will be taken from Housing budgeted account number 47650760.618100. There are sufficient funds to cover this expenditure.
ATTACHMENTS:
1. Mobile Home Replacement Program for Seniors and Disabled Persons Program Guidelines
ORATION
MOTION:
That the City Council and Culver City Housing Authority Board:
1. Approve a professional services agreement with InPark Sales for the removal of mobile homes deemed uninhabitable and the transfer, purchase and installation of new replacement mobile homes in an amount not to exceed $300,000; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.