HomeMy WebLinkAbout31- Economic Development t t
CITY OF SAN BERNARDINO ORIGINAL
ECONOMIC DEVELOPMENT AGENCY
FROM: Emil A.Marzullo SUBJECT: Samuel K. Hughes - Contract Employment
Interim Executive Director Agreement to provide acquisition and project
management services for the Neighborhood
Stabilization Program and related Housing
DATE: March 11,2011 Activities
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Synopsis of Previous Commission/CounciUCommittee Action(s):
On February 10, 2011, Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to recommend
that the Community Development Commission consider this action for approval.
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Recommended Motion(s):
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the
Interim Executive Director of the Redevelopment Agency of the City of San Bernardino("Agency")to execute a Contract
Employment Agreement by and between the Agency and Samuel K. Hughes to provide Neighborhood Stabilization
Program and other affordable housing professional services to the Agency
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Contact Person(s): Carey K.Jenkins Phone: (909)663-1044
Project Area(s): Citywide Ward(s): All
Supporting Data Attached: Q Staff Report 9 Resolution(s)El Agreement(s)/Contract(s)O Map(s)❑Letter(s)
Low and Moderate Housing Set-Aside Funds and
FUNDING REQUIREMENTS: Amount: $86,980(Salary Only) Source: Federal Neighborhood Stabilization Program
Budget Authority: Fiscal Year 2010-2011 Budget
Signature- Fiscal Review:
Emil A.MarzuIlo_,_h4rim Executive Director Lori P -T' ry,Int C - Financial Officer
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Commission/Council Notes:
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P:\Agendas\CommDevCommission\CDC2011\03-21-11 Samuel K.Hughes-Contract Employment Agreementdoc COMMISSION MEETING AGENDA
Meeting Date: 03/21/2011
Agenda Item Number: 31
. f
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SAMUEL K. HUGHES—CONTRACT EMPLOYMENT AGREEMENT TO PROVIDE
ACQUISITION AND PROJECT MANAGEMENT SERVICES FOR THE NEIGHBORHOOD
STABILIZATION PROGRAM AND RELATED HOUSING ACTIVITIES
BACKGROUND:
On September 8, 2009, the Community Development Commission of the City of San Bernardino
("Commission") approved a professional services agreement with Mr. Samuel K. Hughes relative to
property acquisition and project management activities in support of the City of San Bernardino's
("City") Neighborhood Stabilization Program ("NSP"). The approval of such an agreement was the
result of a successful recruitment effort to identify a project manager with specific skills in acquiring
and disposing of residential properties.
CURRENT ISSUE:
The Redevelopment Agency of the City of San Bernardino ("Agency") seeks to continue its
relationship with Mr. Hughes by modifying the terms of the existing agreement. First, as it relates to
work activities, Mr. Hughes' responsibilities have grown beyond standard NSP property acquisitions
and dispositions. He is now managing the Agency's home buyer assistance program ("HAP"),
overseeing the predevelopment activities of various site specific development opportunities and
completing certain staff reports for Commission consideration. Second, Mr. Hughes' assigned
activities requires him to be physically located on-site during normal business hours with a dedicated
phone line and workstation which is consistent with the definition of a contract employee as defined by
the Internal Revenue Service ("IRS"). Therefore, a contract employment agreement ("Agreement") as
opposed to a consultant agreement is the preferred contracting method. Third, the hourly fee schedule
has been pegged to that of the hourly rate of an Agency Project Manager at Step "E". This equates to a
wage rate of$43.49 per hour and would be in effect for a maximum of 2,000 hours under the proposed
Agreement. On an annual salary basis, this would equate to $86,980 per year. The proposed hourly
wage rate is $4.51 lower than the existing rate applied to Mr. Hughes' consultant agreement.
The Agreement would also entitle Mr. Hughes to reimbursable expenses, including mileage and
participation in the California Public Employees Retirement System ("PERS") upon reaching 1,000
hours of employment as this is a requirement of the Agency given Mr. Hughes' status as a contract
employee.
If approved, the proposed Agreement would be subject to termination by either party with a 30-day
notice, and would be subject to funding through the Agency's annual budget adoption process.
ENVIRONMENTAL IMPACT:
None.
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P:\Agendas\Comm Dev Commission\CDC 2011\03-21-11 Samuel K.Hughes-Contract Employment Agreement.doc COMMISSION MEETING AGENDA
Meeting Date: 03/21/2011
Agenda Item Number: 31
i
Economic Development Agency Staff Report
Samuel K. Hughes— Contract Employment Agreement
Page 2
FISCAL IMPACT:
The hourly fee of $43.49 based on 2,000 hours of service provided ($86,980 annually), the
reimbursable expenses and PERS benefits would be paid through a combination of Agency Low and
Moderate Housing Set Aside Funds and the administrative budget of the City's NSP. Therefore, there
is no net cost to the City's General Fund.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
Emil A. Marzullo, n erim Executive Director
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PAAgendas\Comm Dev Commission\CDC 2011\03-21-11 Samuel K.Hughes-Contract Employment Agreement.doc COMMISSION MEETING AGENDA
Meeting Date: 03/21/2011
Agenda Item Number: 3
r '
1 RESOLUTION NO. C 0 P
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
4 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE A CONTRACT EMPLOYMENT AGREEMENT BY AND
5 BETWEEN THE AGENCY AND SAMUEL K. HUGHES TO PROVIDE
6 NEIGHBORHOOD STABILIZATION PROGRAM AND OTHER
AFFORDABLE HOUSING PROFESSIONAL SERVICES TO THE AGENCY
7
8 WHEREAS, the Neighborhood Stabilization Program ("NSP") and the various aspects
9 associated with acquisition and rehabilitation of formerly foreclosed housing units has created an
10 urgent need for a professional-level acquisitions project manager; and
11 WHEREAS, such an acquisitions project manager is needed to work closely with the
12 Redevelopment Agency of the City of San Bernardino ("Agency") Staff to successfully manage all
13 aspects of housing acquisition and disposition activities as well as manage the activities of the
14 Agency's Citywide Housing Assistance Program which provides down payment assistance loans to
15 qualified home buyers; and
16 WHEREAS, Mr. Samuel K. Hughes ("Contract Employee") has been working for the
17 Agency as a project consultant for the NSP as a result of being selected after a competitive
18 recruitment; and
19 WHEREAS, the current and anticipated future work load of the Contract Employee requires
20 that he maintain a consistent physical presence at the Agency during standard business hours; and
21 WHEREAS, the skills, education, and previous work experience of the Contract Employee
22 makes him most qualified to provide such professional-level services; and
23 WHEREAS, the Community Development Commission of the City of San Bernardino
24 ("Commission") desires to authorize the establishment of a temporary full-time position with the
25 Contract Employee as further detailed in the Contract Employment Agreement ("Agreement") by
26 and between the Agency and the Contract Employee, along with California Public Employee
Retirement System ("PERS") benefits after the Contract Em completion of 1,000 hours of Employee's com
27 p Y p
28 employment under the Agreement in order to provide acquisitions project management services in
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1 furtherance of the City's NSP and related housing production efforts.
2 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
3 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
4 FOLLOWS:
5 Section 1. The Commission hereby approves and authorizes the establishment of the
6 temporary full-time staff position of "Acquisitions Project Manager" from the date of this
7 Resolution through and including June 30, 2012, in accordance with the Agreement attached hereto
8 as Exhibit"A" in furtherance of the NSP and related housing production efforts.
9 Section 2. This Resolution shall take effect from and after its date of adoption by this
10 Commission.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
1 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
2 THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
3 EXECUTE A CONTRACT EMPLOYMENT AGREEMENT BY AND
BETWEEN THE AGENCY AND SAMUEL K. HUGHES TO PROVIDE
4 NEIGHBORHOOD STABILIZATION PROGRAM AND OTHER
5 AFFORDABLE HOUSING PROFESSIONAL SERVICES TO THE AGENCY
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a meeting
8 thereof, held on the day of , 2011, by the following vote to wit:
9 Commission Members: Ayes Nays Abstain Absent
10 MARQUEZ
11 VACANT
12 BRINKER
13 SHORETT
14
KELLEY
15 JOHNSON
16 MC CAMMACK
17
18 Secretary
19
20 The foregoing Resolution is hereby approved this day of 52011.
21
22 Patrick J. Morris, Chairperson
Community Development Commission
23 of the City of San Bernardino
24 Approved as to Form:
25
26 By:
27 Agenc o sel
28
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EXHIBIT"A"
CONTRACT EMPLOYMENT AGREEMENT
This Contract Employment Agreement (this "Agreement") is made and entered into on this 21St
day of March, 2011 (the "Effective Date"), by and between the Redevelopment Agency of the City of San
Bernardino, a public body, corporate and politic (hereinafter referred to as the "Agency") and Samuel K.
Hughes, Acquisition Project Manager(hereinafter referred to as the "Contract Employee").
WITNESSETH
WHEREAS, the Contract Employee has over fourteen (14) years of experience in developing and
financing various housing programs and projects with for-profit and governmental organizations in
California; and
WHEREAS, the Agency and the Contract Employee desire to enter into this Agreement to utilize
the Contract Employee's services for professional property acquisition and disposition, housing finance
and economic development activities related to the Agency's on-going Neighborhood Stabilization
Program and Housing Down Payment Assistance Program efforts as described in Attachment I, attached
hereto and incorporated herein by reference and the Contract Employee accepts responsibilities as
described herein.
NOW, THEREFORE, in consideration of mutual covenants herein set forth and the mutual
benefits to be derived there from,the parties agree to enter into this Agreement as follows:
1. TERMS OF EMPLOYMENT.
(a) This Agreement shall commence as of the day and year first above written and shall remain in full
force and effect until such time as either party provides a written thirty (30)-day termination
notice, and shall be subject to appropriate funding within the Agency's annual budget; provided,
however, that the term of this Agreement shall not exceed a duration through and including June
30, 2012, unless otherwise amended in writing by the parties.
(b) There may also be two (2) additional one (1)-year Agreements that may be executed for each
subsequent fiscal year (FY 2012-2013 and FY 2013-2014) consistent with the Agency's annual
budget process and subject to the mutual agreement between the Agency and the Contract
Employee and subject to the availability of funds.
(c) Contract Employee Rules. Except as set out in this Agreement, the Contract Employee shall be
and remain an at-will employee who may be terminated without cause as set out herein. The
Employee shall not be eligible for benefits provided for regular employees, i.e. vacation, sick
leave or holiday pay (except as required by law), but shall be covered by workers' compensation.
The Contract Employee shall receive a W-2 and appropriate taxes shall be withheld.
Under the supervision of Carey K. Jenkins, Director of Housing and Community Development,
the Contract Employee shall perform each element as needed of the work described in the job
description attached hereto as Attachment I.
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EXHIBIT"A"
2. CONFIDENTIALITY OF REPORTS.
The Contract Employee shall keep confidential all reports, information and data received,prepared
or assembled pursuant to performance hereunder. Such information shall not be made available to any
person, news release, firm, corporation, or entity without prior written consent of the Agency's Interim
Executive Director or designee.
3. COMPENSATION.
The maximum compensation for the Contract Employee'sservices shall be equal to Forty-Three
Dollars and Forty-Nine cents ($43.49) per hour with a maximum not to exceed the figure of Eighty-Six
Thousand Nine Hundred Eighty Dollars ($86,980.00) in any one fiscal year. Reimbursement for work-
related travel, including travel mileage at the current Internal Revenue Service rate, shall be pre-approved
by the Interim Executive Director or his designee, in writing, and shall be submitted for reimbursement
with the Contract Employee's time card as supported by documentation in accordance with the Agency's
policies and procedures. During the term of this Agreement, the Agency shall pay the Contract Employee
on the same basis as other contract employees upon receipt of a time card or itemized invoice from the
Contract Employee.
The Contract Employee shall also receive Public Employee Retirement System (PERS) benefits to
be paid by the Agency (employee and employer portion) which shall commence after 1,000 hours of
employment following the effective date of this Agreement.
4. NON-DISCRIMINATION; MONITORING AND REPORTING WORK PERFORMANCE.
The Contract Employee shall not discriminate because of race, color, national origin, creed,
religion, sex, marital status or physical handicap. The Contract Employee shall be governed by the
Agency's Harassment, ADA and Drug Free Workplace Policies.
5. CONFLICT OF INTEREST.
The Contract Employee shall be governed by the Agency's conflict of interest code and
regulations.
6. RIGHT TO OBTAIN OTHER CONTRACTUAL ARRANGEMENTS.
During the term of this Agreement and any extension thereof, the Contract Employee shall not
engage in outside employment without the prior written consent of the Interim Executive Director of the
Agency or his designee.
7 NO ASSIGNMENT.
The services as contained herein are to be rendered by the Contract Employee whose name is as
appears first above written and said Contract Employee shall not assign nor transfer any interest in this
Agreement.
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EXHIBIT"A"
8. MODIFICATION.
This Agreement may be supplemented, amended, or modified only by the mutual agreement of the
parties. No supplement, amendment, or modification of this Agreement shall be binding unless it is in
writing and signed by both parties.
9. CHOICE OF LAW.
This Agreement, and any dispute arising from the relationship between the parties to this
Agreement, shall be governed by California law, excluding any laws that direct the application of another
jurisdiction's laws. Venue shall be in the Central District of San Bernardino.
10. COMPLIANCE WITH LAWS.
The parties agree to be bound by applicable federal, state and local laws, regulations and directives
as they pertain to the performance of this Agreement.
11. SEVERABILITY.
In the event that any provision herein contained is held to be invalid, void or illegal by any court
of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and
shall in no way affect, impair or invalidate any other provision contained herein. If any such provision
shall be deemed invalid due to its scope of breadth, such provision shall be deemed valid to the extent of
`�.• the scope or breadth permitted by law.
12. INTERPRETATION.
No provision of this Agreement is to be interpreted for or against either party because that party or
that party's legal representative drafted such provision, but this Agreement is to be construed as if it were
drafted by both parties hereto.
13. CONTRACT EVALUATION AND REVIEW.
The on-going assessment and monitoring of this Agreement is the responsibility of the Interim
Executive Director or designee.
14. ENTIRE AGREEMENT.
This Agreement supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the retention of the Contract Employee by the Agency and contains all the
covenants and agreements between the parties with respect to such retention.
15. WAIVER.
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by
the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving
the breach, failure, right or remedy. No waiver of any breach, failure, right or remedy, shall be deemed a
waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver
constitute a continuing waiver unless the writing so specifies.
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EXHIBIT"A"
16. NOTICE.
Notices herein shall be presented in person or by certified or registered United States mail, as
follows:
To the Contract Employee: Samuel K. Hughes, Acquisition Project Manager
1142 South Diamond Bar Boulevard, Suite 272
Diamond Bar, California 91765
(310) 880-0464
To the Agency: Emil A. Marzullo, Interim Executive Director
Redevelopment Agency of the City of San Bernardino
201 North"E" Street, Suite 301
San Bernardino, California 92401
(909) 663-1044
17. ENTIRE AGREEMENT.
This Agreement, with Attachment I, constitutes the final, complete and exclusive statement of the
terms of the agreement between the parties pertaining to the engagement of the Contract Employee by the
Agency and the entire understanding of the parties and supersedes all prior and contemporaneous
understandings or agreements of the parties. No party has been induced to enter into this Agreement by,
nor is any party relying on, any representation or warranty outside those expressly set forth in this
Agreement.
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EXHIBIT"A"
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Dated: By: NOT FOR SIGNATURE
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By: NOT FOR SIGNATURE
Agency Counsel
CONTRACT EMPLOYEE
Dated: By: NOT FOR SIGNATURE
Samuel K. Hughes, Acquisition Project Manager
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ATTACHMENT
SAMUEL K. HUGHES
ECONOMIC DEVELOPMENT AGENCY
HOUSING & COMMUNITY DEVELOPMENT
ACQUISITION PROJECT MANAGER
JOB DESCRIPTION:
Under general supervision, the Acquisition Project Manager ("Contract Employee") will conduct
field and office work related to: (1) acquisition and disposition of Agency residential properties;
and (2) interfacing with various housing lenders, appraisers, inspectors and associated
professionals to manage the Agency's housing down payment assistance program ("HAP") for
buyers of both NSP and non-NSP funded homes.
SUPERVISION RECEIVED AND EXERCISED:
Receives direction from the Housing and Community Development Director. Exercises
supervision of subordinate staff (NSP administrative analyst) in the day-to-day efforts of
property acquisition, disposition, loan originating and property asset management regarding such
%. redevelopment programs and projects.
SPECIAL QUALIFICATIONS:
This position differs from other Department positions in requiring a detailed familiarity with
residential acquisition and disposition procedures as well as the process of lending to single
family residential borrowers. Knowledge of redevelopment and community development
practices, of real property development and management principles and techniques and methods
of property acquisition and disposition as well as a strong ability to interface and negotiate with
the business and development community. The position requires technical background and skills
necessary in various housing areas, including rehabilitation programs and financings.
ESSENTIAL FUNCTIONS:
Duties may include, but are not limited to, the following:
• Confirm that the interest of the Agency is adhered to during on-going negotiations to
acquire properties through the National Community Stabilization Trust (NCST);
• Support efforts related to establishing and maintaining records and financial accounting
systems to comply with NSP program guidelines and federal/state audit requirements;
• Coordinate and oversee the work of developers, cost estimators, appraisers,
environmental specialists, contractors, real estate agents and intermediaries contracted to
perform development activities on behalf of the Agency or its affiliated non-profit
corporation;
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EXHIBIT"A"
• Obtain a broker price opinion prior to entering into purchase price negotiations on any of
the foreclosure properties identified by the Agency under the NSP;
• Coordinate real estate purchase and sale contracts on behalf of the Agency or its affiliate
non-profit;
• Report on the progress of NSP activities to the Agency's Housing Director and other
interested parties;
• Identify Mortgage Companies and Loan Officers to participate in the Homebuyer
Assistance Program ("HAP"). Plan and facilitate training seminars for lenders interested
in participating in the City's HAP;
• Field questions and concerns of prospective home buyers and real estate sales persons
interested in participating in the HAP:
• Underwrite loan files presented to the Agency for approval for funding for HAP
assistance as well as underwrite subordination requests from existing borrowers seeking
to refinance first mortgages:
• Manage the activities of relocation and replacement housing consultants as they perform
related services on various housing development projects within the City:
`,,,.,ts • Perform on-going evaluation and analysis of selected development opportunities for non-
profit affordable housing providers:
(a) Prepare certain staff reports, including necessary backup for presentation to City
Council.
(b) Develop and implement new community development and redevelopment projects
which are beneficial to the implementation of the goals and objectives of the
Agency;
(c) Undertake and supervise the planning and implementation of development activities
and real estate transactions including acquisition, relocation, subdivision,
improvement and disposition of real property;
(d) Interface and negotiate with the development community to implement Department
goals and procedures with respect to potential development proposals;
(e) Assist and implement short- and long-term land use planning goals, economic
development strategies, and asset management activities;
(f) Implement and coordinate property management and relocation activities;
(g) Manage the review of contracts and progress reports and maintain proper records
and manage real property escrows and refinancing;
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EXHIBIT "A"
(h) Cause the preparation of contract documents for the acquisition, demolition,
improvement, management and disposition of property; and
(i) Perform related work as required.
WORK HOURS:
Standard business hours, Monday through Friday, 8 a.m. — 5 p.m. and usually works to 6 p.m.
Exempt position, not eligible for overtime
The Contract Employee uses the Agency's equipment to perform the duties: desk, phone,
computer, printer, camera, copier, paper, pens and general supplies to perform the day-to-day
operations.
QUALIFICATIONS:
Knowledge o£
• Real estate, construction, demolition, environmental, community development and
redevelopment laws, rules and regulations.
• Methods and techniques of contract interpretation, including documents relating to
acquisition, demolition, disposition, construction, financing and property management.
• Knowledge of property management principles and methods including those pertaining to
leasing, maintaining and securing buildings and vacant land.
• Knowledge of land acquisition, demolition, relocation and environmental requirements under
state and federal law.
Abilitv to:
• Negotiate technical and complex development agreements with development community
representatives.
• Supervise Agency identified contractors and assigned administrative staff.
• Communicate effectively with other employees, real estate trade, property owners and the
general public.
• Ability to deal tactfully and effectively with general public and work effectively with other
employees.
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