6-10 Agreement

TOWNSHIP OF WEST ORANGE 66 Main Street , West Orange, New Jersey 07052 PLANNING AND DEVELOPMENT M E M O R A N D U M John F. McKeon Mayor SUSAN BORG A.I.A. Planning Director Tel: -973-325-4110 Fax: 973-325-6359 TO: Township Council Members From: Director Susan Borg RE: Amended Contract for Rehabilitation Program Administrative Services (Steven J. Weinberg) DATE: January 4, 2010 Please be advised that Mr. Weinberg has requested a increase to the per unit fee. Kindly review his letter and request for per unit fee adjustment which is attached for your information along with the amended contract.

SBljfc Township of West Orange Housing Rehabilitation Program (WO HRP) Steven J. Weinberg 66 Main St. Program Coordinator West Orange, NJ 07052 732-390-4745 steve.weinberg@mac.com December 18, 2009 Ms. Susan Borg, Director West Orange Planning Development Department 66 Main St. West Orange, NJ 07052 Dear Ms. Borg: Community Action Services has been providing the West Orange Township Housing Rehabilitation Program with efficient and effective administrative services since 1999. Our straightforward, per-unit fee structure allows for transparent financial management by the Township of our services and our billing. The vast majority of our program clients have been very satisfied with our work and with the benefits provided by the program. Overall, 164 West Orange families have been assisted, to date, with 8 more currently in the pipeline. Unfortunately, as demonstrated on the attached sheet, our per-unit rates

have not kept up with either industry averages or what our other clients have been paying. I must therefore request that you consider a revised fee structure of $2500 per unit for all units completed in 2010 and beyond. Please let me know if there is any additional information needed to process this request. Sincerely COMMUNITY ACTION SERVICES Steven J. Weinberg, Director A program of West Orange Township - John F. McKeon, Mayor Department of Planning and Development - Susan Borg, Director $4,500 Community Action Services Proposal to West Orange for Rehabilitation Management Contract Amendment Community Action Services West Orange Request for Per Unit Fee Adjustment COAH allows a community to pay up to 20% of rehabilitation hard costs for program administration. The West Orange Housing Rehab Program allows $20,000 per unit for hard costs. This allows West Orange a theoretical cap of $4000 per unit for program administration. Highest reported Consultant per unit fees currently being paid in New Jersey for COAH rehab is the 20% Maximum in a $22,500 per unit program. This comes to $4,500 per unit completed

Newly enacted COAH fee cap for consultants administering housing rehabilitation under Regional $5,250 Contribution Agreements ommunity Action Services Current Client Fee Structur Managing Rehab in Communit y Since Year Most Recent Contract Current Per Unit Rate Proposed Per Unit Rate West Orange 1999 1999 $2,200 $2,500 Passaic Co. Community 1998 2009 $2,600 $2,900 Bergen Co. Community 2009 2009 $2,900 $2,900 Sussex Co. Community 1988 2004 $2,200 $2,700 Bergen Co. Community 1992 2004 $2,300 $2,700 Mercer Co. Community 2009 2009 $2,900 $2,900 Sussex Co. Community 2005 2009 $2,900 $2,900 Somerset Co. Community 1998 2009 $2,900 $2,900 TOWNSHIP OF WEST ORANGE, NEW JERSEY AMENDED CONTRACT FOR REHABILITATION PROGRAM ADMINISTRATIVE SERVICES THIS AGREEMENT, entered into this __________day of January, 2010, by and between the Township of West Orange, a municipal corporation of the State of New Jersey, having its principal office at 66 Main Street, West Orange, New Jersey 07052 (hereinafter referred to as the Township), and Steven J. Weinberg (T/A Community Action Services), having his principal office at P.O. Box 6025, East Brunswick, New Jersey 08816 (hereinafter referred to as the Consultant); WHEREAS, the Township desires to secure consultant services relative to its implementation of a rehabilitation program in compliance with the regulations of the New Jersey Council on Affordable Housing (COAH); and,

WHEREAS, the Consultant's principal members have heretofore satisfactorily provided professional services to municipalities in these and related matters; and WHEREAS, the Consultant is qualified to provide such administrative services under the direction and supervision of the West Orange Township Planner; WITNESSETH THAT: the Township agrees to engage the Consultant and the Consultant agrees to perform the services hereinafter set forth subject to the terms and conditions of this Agreement and described as follows: I. ____ INTENT OF THIS CONTRACT The intent of this contract is for the Township to retain the services of the Consultant to assist the Township in the implementation of a rehabilitation program pursuant to the regulatory requirements of the New Jersey Council on Affordable Housing (hereinafter referred to as COAH) as set forth in procedural rules at N.J.A.C. 5:91 and substantive rules at N.J.A.C. 5:93. The Consultant is to assist the Township in the effectuation of the administrative procedures associated with the implementation of a housing rehabilitation program as specified below. II. ___ SCOPE OF SERVICES The Consultant shall provide comprehensive services to implement a housing rehabilitation program in the Township of West Orange. These services shall include the provision of rehabilitation program services for review of the design of program policy and procedures, program marketing, applicant selection, work writeups and cost estimates, contracting, construction inspection, case close-out and reporting of program performance and all other related and appropriate services. All services must be performed in strict conformance with the West Orange Housing and Rehabilitation Program Policy and Procedure Manual, a copy in draft form attached as (Exhibit B). This manual may be amended from time to time as the Township deems appropriate. The Consultant shall provide services for administration of the Township's rehabilitation program as follows: A. __APPLICANT SELECTION The Consultant shall provide the following services with respect

to applicant selection: 1. Prepare and distribute informational materials approved by the Township for promoting the housing rehabilitation program; 2. Receive, review and log pre-applications; 3. Schedule interviews with potential applicants; 4. Interview applicants and explain the provisions of the available rehabilitation assistance; 5. Obtain and prepare applicant documents, including verification of income, employment, ownership, tax records and related information; and 6. Prepare case materials and documents for applicant approval by the Township. B. WORK WRITE-UPS AND COST ESTIMATES The Consultant shall inspect properties and prepare work write-ups and cost estimates for housing units to be assisted. These services shall include: 1. Inspection of the premises of pre-qualified homeowners to determine rehabilitation work to be accomplished in accordance with COAH regulations and Township of West Orange Housing Rehabilitation Program Policy and Procedure Manual; 2. Preparation of work write-ups, construction specifications and cost estimates for the rehabilitation work to be completed at each property; 3. Review of the proposed rehabilitation items with the applicant prior to commencement of contracting for rehabilitation activities; and 4. The reprocessing, as required, of the work write-up and cost estimates after having reviewed and revised the work write-ups with the applicant. C. CONTRACTING SERVICES The Consultant shall provide for contracting assistance, including the following services: 1. Solicitation of contractor participants, review of contractor

qualifications and maintenance of program contractor files; 2. Solicitation of bids/estimates for construction work specified in the write-up, from qualified contractors; 3. Assisting the applicant in the construction contract bidding/estiinating procedure and selection of a qualified rehabilitation contractor; 4. Assisting the applicant in the contracting procedures, in accordance with Township policy; 5. Preparation of documents for rehabilitation contract and loan closing as applicable, including mortgage, promissory note, recession notice, etc.; and 6. Filing of mortgages with Essex County Register. D. CONSTRUCTION INSPECTION SERVICE AND CASE CLOSEOUT The Consultant shall provide for construction inspection services and establish a final case record which will include the following services: 1. Periodic construction inspection and an approval system for payment to contractors for work completed; 2. Final inspection of work completed and securing of the contractor's and manufacturer's guarantees; 3. Maintenance of program fiscal and accounting records and preparation of periodic progress and financial reports; 4. Preparation of case record documents for the Township and, as necessary, the Council on Affordable Housing; 5. Preparation of required reporting documents for submission to the Township and the Council on Affordable Housing in compliance with COAH regulations; and, 6. Full cooperation and preparation of any documents or reports necessary for any audit analysis performed by any government entity. E. NUMBER OF UNITS

The total number of units of housing rehabilitation authorized to be completed by the Consultant under the terms of this contract is approximately 25 units per year. The Director of the Township Department of Planning and Development will notify the Consultant if this authorized annual completion number is to be increased or decreased. III. ___ PROGRAM STAFFING AND OFFICE OPERATIONS STATEMENT The Consultant shall provide staff and manage office and field operations of the Housing Rehabilitation Program as required to provide for the delivery of services set forth in this contract. The Township reserves the right to require the dismissal from program duties of any staff member of the consultant on 24 hours notice, for cause. Specifically, this shall include, at a minimum, the provision of the following: A. PROGRAM OVERSIGHT Overall program oversight and review shall be provided by the staff of the Consultant. This program oversight will involve the services of Steven J. Weinberg, Director of the firm, and other qualified members of the Consultant's staff as required to assure effective and efficient program operation. B. TECHNICAL AND SUPPORT STAFF In addition to the above, the staff of the Consultant will provide overall administrative and management services in connection with the Housing Rehabilitation Program. This service will include staff training, computerized work write-up and cost estimate processing, implementation advisory services and other technical support, as necessary. C. PROGRAM OFFICE /STAFF The Housing Rehabilitation Program Office will be open as necessary to accommodate the demands of program implementation. The office hours will be dependent upon the availability of program fund resources, program caseload and the resultant demands for administrative support services.

The Consultant will provide staff to administer the program. The Program Staff will provide for day-to-day operation of the Housing Rehabilitation Program and manage administrative, clerical and property inspection responsibilities. D. STAFF AVAILABILITY The staff, described above, will be available at the Township of West Orange Municipal Building at 66 Main Street or other such locations as the Township Planner directs to implement the Housing Rehabilitation Program in accordance with the provisions set forth in this contract. IV. ___ TIME OF PERFORMANCE The services of the Consultant are to commence at the execution of this contract. The Consultant shall provide the services set forth herein during the rehabilitation program to be implemented by the Township subject to the terms of Exhibit A. The provisions of this contract shall be applicable through the duration of the rehabilitation program period, provided: A. PERFORMANCE The Consultant has, in the sole judgment of the Township, provided the services set forth herein in a satisfactory manner. B. AGREEMENT CONTINUATION The Township and the Consultant do not take action to terminate the contract, pursuant to the provisions of Article VIII. below. V. ___ COMPENSATION AND METHOD OF PAYMENT The Township shall pay the Consultant for the Consultant's services in accordance with the fee schedule set forth below. All moneys payable to the Consultant are subject to receipt of a requisition for payment from the Consultant, in form satisfactory to the Township, stating that he has performed the work under this contract in conformance with the contract and that he is entitled to receive the amounts requisitioned under the terms of the contract. Moneys called for under such periodic requisitions are due and payable within a reasonable time period based on

the municipal billing and payment system. The following lump sum per unit fees shall be paid to the Consultant as clients complete their participation in the Township housing rehabilitation program. In any event, the following per-unit fee times the total number of units authorized for rehabilitation will be maximum payment that the consultant may earn for the services provided. Total Lump Sum Fee per Unit Completed $2,500 In the event the Township specifically requests the provision of professional services outside of the scope of services specified in Article II above, the Consultant shall be compensated in accordance with the Consultant's established fee schedule at the time of provision of such services or such other basis as maybe mutually agreed by the Township and the Consultant. All extra services must be preapproved, in writing, by the Township Planner with a specified monetary cap for such services. It is expressly understood and agreed that the compensation to be provided by the Township will be funded through the Township's Affordable Housing Trust Fund in accordance with the regulations of COAH. Accordingly, the Consultant's provision of services and the Township's compensation as set forth herein shall be subject to the availability of funds under such Trust Fund. The total amount of compensation and the total number of units to be assisted will be dependent upon the funds available in the Trust Fund. The Township Planner will provide the Consultant, at least annually, with a lump sum number of units that may be undertaken with funds-on-hand during any given calendar year. VI. __ INSURANCE AND INDEMNITY The Township and the Consultant do mutually agree as follows: A. CONSULTANT'S INSURANCE The Consultant shall acquire and maintain statutory workmen's compensation insurance coverage for all employees.