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HomeMy WebLinkAboutItem ISEA( @� v 9n2� AGENDA STAFF REPORT ; DATE: July 25, 2016 1FO__.. TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Victoria L. Beatley, Director of Finance /City Treasurer SUBJECT: PROPERTY MANAGEMENT SERVICES AGREEMENT SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6667 approving and authorizing the City Manager to execute an agreement with Westridge Commercial, Inc. for property management services. The monthly base fee for property management services will be $2,750. BACKGROUND AND ANALYSIS: The City of Seal Beach owns various properties throughout the City. Several of these properties are managed by a private property management firm. On December 10, 2012 the City executed an Agreement for Property Management Services with Pacific West Asset Management. In an effort to consolidate the management of all properties, to improve the quality of service, to meet the demands of the tenants, and to elevate the level of leasing support, the City has elected to retain the services of a new property management company. The properties to be managed are: • City Hall Annex: Located at 201 8th Street and was the original City Hall. It was built in 1929 and is approximately 11,150 square feet. It is a two -story structure and is a registered historic landmark. The building is currently used for offices, retail businesses, and the Seal Beach Cable Foundation and TV studio. • River's End Cafe: The restaurant located at 15 15` Street, at the south end of 1st Street which is at the end of the San Gabriel River Bike Trail. The building is approximately 1,350 square feet and was built in 1976. • Pier Restaurant: Located at the end of the Seal Beach Pier at 900A Ocean Ave, the Pier Restaurant was previously leased by Ruby's Diner. It was constructed in 1985 and destroyed by fire in May of 2016. The structures are currently being demolished and may be reconstructed. If reconstructed and leased, the pier restaurant structure would be managed Agenda Item I under this Agreement. The monthly fees for the Pier Restaurant will not be in effect until a tenant is secured. • 4197 Ironwood: This property was purchased in 2014 in advance of a planned storm drain project. Westridge Commercial, Inc. manages a large portfolio of properties which are made up of smaller, specialty portfolios. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The City currently funds the property management services from rental revenue. RECOMMENDATION: That the City Council adopt Resolution No. 6667 approving and authorizing the City Manager to execute an agreement with Westridge Commercial, Inc. for property management services. The monthly base fee for property management services will be $2,750. Director of Finance /City Treasurer Attachments: A. Resolution No. 6667 B. Property Management Agreement Exhibit A - Westridge Commercial, Inc. Page 2 NOTED AND APPROVED: fl;T Attachment "A" RESOLUTION NUMBER 6667 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING A PROFESSIONAL SERVICES AGREEMENT FOR PROPERTY MANAGEMENT SERVICES THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the professional services agreement ( "Agreement') between the City of Seal Beach and Westridge Commercial, Inc. for property management services in the amount of $2,750 base fees per month. Section 2. The Council hereby directs the City Manager to execute the Agreement. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 25th day of Jam, 2016 by the following vote: AYES: Council Members NOES: Council ABSENT: Council Members ABSTAIN: Council Sandra Massa - Lavitt, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6667 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 25th day of July , 2016. Robin L. Roberts, City Clerk Attachment 6659 PROPERTY MANAGEMENT SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 0 Westridge Commercial, Inc. 23101 Moulton Parkway, Suite 210 Laguna Hills, CA 92653 949.305.7929 This Professional Service Agreement ( "the Agreement') is made as of July 25, 2016 (the "Effective Date "), by and between Westridge Commercial, Inc. ( "Consultant'), a California Corporation, and the City of Seal Beach ( "City "), a California charter city, (collectively, "the Parties "). Error! Unknown document Property name. 5; 7296-0001 \I 977R27v i. dGG RECITALS A. City desires certain professional services. B. Consultant represents that it is qualified and able to provide City with such services. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services ( "Services ") set forth in the attached Exhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1. 2. Consultant shall do everything reasonably necessary for the proper management of City property. Consultant must timely respond to all tenant requests and negotiate with tenants on behalf of City. Consultant must use all reasonable efforts to assure tenant compliance with the terms of their leases; including, but not limited to, periodically inspecting the properties, supervising property maintenance and repairs, and arranging for such improvements, alterations, and repairs as may be required by City. No single improvement, alteration, or repair costing more than $ 1, 000.00 shall be made by Consultant without City's prior authorization, with the exception of emergencies requiring immediate repair or alteration when City is not available for consultation, in which case, Consultant shall take such actions as are reasonably needed to secure and maintain City property. 1.3. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.4 In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.5 Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manger may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2 of 10 Error! Unknown document property name. 1. 6. Consultant shall deposit and hold in trust monies collected by Consultant on behalf of City into a building operation account that is separate and apart from Consultant's funds in a state or national bank wherein deposits are insured by an agency of the Federal Government. Consultant shall remit to City, at least quarterly, at the address specified in this Agreement or as City may otherwise directed in writing the net amount of all funds collected for City's account, which shall be the gross collections from City property less all authorized expenses, operating, funds, and reserves. Consultant must also deliver to City a statement showing all receipts and disbursements for the month reported, together with supporting documentation. 1. 7. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize payment for such work up to a cumulative maximum of $10,000 throughout the term of this Agreement. Payment for additional work in excess of $ 10,000 requires prior City Council authorization. 2.0 Term and Termination 2.1 This term of this Agreement shall commence as of the Effective Date and shall continue for 10 years or until terminated earlier as provided by this Agreement. 2.2 This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other parry written notice thereof not less than 30 days prior to the date of termination. 2.3 This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 3.0 Consultant's Compensation City will pay Consultant in accordance with the monthly rates shown on the fee schedule set forth in Exhibit A for Services, not to exceed $2,750 per month. Any additional work authorized by the City pursuant to Section 1.7 will be compensated according to fees separately negotiated with Consultant and approved in advance by City. 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 3of10 Error! Unknown document property name.R7PgFi-0001�,197782;!W -dee days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24 -hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 5.0 Party Representatives 5.1. The City Manager is the City's representative for purposes of this Agreement. 5.2. Mohammed Baghdadi is the Consultant's primary representative for purposes of this Agreement. 6.0 Notices 6.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the parry at the following addresses: To City: City of Seal Beach 211 8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: Westridge Commercial, Inc. 23101 Moulton Parkway, Suite 210 Laguna Hills, CA 92653 Attn: Mohammed Baghdadi 6.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 4of10 Error! Unknown document property name. 7.0 Independent Contractor 7.1. Consultant is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 7.2. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant's personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 8.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. 9.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 10.0 Insurance 10.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer 5of10 Error! Unknown document property name. to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 10.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and 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 Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Professional Liability: $1,000,000 per claim /aggregate. 10.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: (1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, (3) coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage and that any insurance or self - insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it; (4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible. 6of10 Error! Unknown document property name. 10.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 10.5. Any deductibles or self- insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 11.0 Indemnification, Hold Harmless, and Duty to Defend Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively "Indemnitees ") free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys' fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of the City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, employees, agents and /or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its directors, officials, officers, employees, agents or volunteers. All duties of Consultant under this Section shall survive termination of this Agreement. 12.0 Equal Opportunity Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non - discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 7 of 10 Error! Unknown document property name. 13.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 14.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties. 15.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 16.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 17.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either parry as a result of this Agreement. 18.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other parry any contractual rights by custom, estoppel, or otherwise. 19.0 Prohibited Interests; Conflict of Interest 20.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner 8of10 Error! Unknown document property name. with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code § §1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 20.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 20.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest' under applicable laws as described in this subsection. 20.0 Attorneys' Fees If either party commences an action against the other parry, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith. 21.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 22.0 Corporate Authority The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said Parry and that 9of10 Error! Unknown document property name. by his or her execution, the Consultant is formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH By: Jill R. Ingram, City Manager Attest: By: Robin L. Roberts, City Clerk Approved as to Form: By: Craig A. Steele, City Attorney CONSULTANT By: Name: Mohammed Baghdadi Its: President 10 of 10 Error! Unknown document property name. Nestridge a full service real estate corporation June 10, 2016 Victoria L. Beatley Director of Finance /City Treasurer City of Seal Beach . 211 Eighth Street, Seal Beach, CA 90740 Subject: Seal Beach Annex Building Rivers End Cafe /Restrooms 4197 Ironwood — SFR Pier Tenant Building Seal Beach, CA Dear Ms. Beatley: Per your request and our inspection earlier this week of the above properties, we feel very confident that we can do a superb job in the managing the assets belonging to the City of Seal Beach. If you were to engage Westridge Commercial, our scope of work would be as follows: 1. Collect all rents. 2. Pay all bills, including mortgage, insurance and property taxes (depending on ownership needs). 3. Work with current tenants on a smooth transition. 4. Review all current billing invoices. 5. Meet and transition current vendors. Rebid current contracts to assure fair pricing- if needed. 6. Inspect property regularly. 7. Assist in getting your vacant units leased. 8. Bid and monitor all repairs and clean up efforts. 9. Prepare a full monthly accounting report. 10. Make distributions as instructed. 23101 Moulton Parkway, Suite 210 • Laguna Hills, CA 92653 • 949.305.7929 • Fax 949.305.7939 Our fee to manage (paying all bills, collections, CAM invoicing, and a full monthly accounting report), would be the following: Annex Building $1,500 per month Rivers End Cafe 600 per month 4197 Ironwood 250 per month Pier Tenant 400 per month No extras or start up fees! We have several properties within close vicinity, and will give you the hands -on attention which these assets need. We would be happy to send over to you personal references if you would like to proceed. If you should have any questions, please do not hesitate to call me. Cordially, WESTRIDGE COMMERCIAL, INC. Mohammed Baghdadi President