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HomeMy WebLinkAboutItem YCity of Seal Beach Agenda Report Date: August 13, 2001 To: Honorable Mayor and City Council From:. John B. Bahorski City Manager Subject: Request for Proposal - Leasing and Property Management Services SUMMARY OF REOUEST: Staff is requesting City Council approve a Request for Proposal (RFP) for Leasing and Property Management Services. This RFP will provide the City with the ability to obtain property management services that are not currently available with existing staff. Seal Beach has numerous properties that are leased to private companies and require constant attention. In addition, staff believes that a company with the proper expertise will maximize City revenues. BACKGROUND: Seal Beach has 14 properties that are leased to private concerns that engage in a variety of business enterprises. Staff believes that a leasing and property management firm with the proper expertise would ensure rents are collected on a timely basis, new leases are negotiated that maximize revenue to the City, and renewed leases are kept at a market rate. This effort requires a significant dedication of time and experience that can only be obtained from the private sector. If City Council authorizes the distribution of the RFP, it is anticipated that a recommendation could be made to City Council by October 9, 2001. FISCAL IMPACT: Staff will have the exact fiscal impact once the proposals are received and reviewed. RECOMMENDATION: Authorize the City Manager to release the Request for Proposal. Agenda Item Y SUPPORTING DOCUMENTS: A. Request for Proposal — Leasing and Property Management Services. Request for Proposal Leasing and Property Management Services City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 Written proposals due: September 13, 2001 2:00 p.m. CITY OF SEAL BEACH PROPERTY MANAGEMENT SERVICES - REQUEST FOR PROPOSAL INVITATION The City of Seal Beach is requesting proposals for property management services from qualified firms. The tens for the services will be for one year, and the agreement may be extended for two additional one -year terms at the option of the City. Services are anticipated to begin October 2001. 1. NATURE OF SERVICES REQUIRED A. General The City is selecting a property management firm to perform the following tasks: • lease and lease renewal negotiations with the goal of maximizing revenues to the City • collect and remit rent to the City • provide services to address delinquencies and evictions • actively advertise and show vacant space • manage compliance with lease agreements • prepare monthly activity and financial statements • provide primary contact for tenant needs • submit recommendations to the City on potential improvements to improve revenues from City owned properties B. Special Services At the discretion of the City the selected property management firm may be requested to undertake additional work outside of those tasks identified in Section A. The City is requesting an hourly rate schedule for additional services. I II. DESCRIPTION OF THE PROPERTY /LEASES The City of Seal Beach has a number of City owned facilities that are leased to private tenants. Listed below are the facilities, location and uses that are currently leased to private tenants and that the potential property management firm would be expected to manage. Prior to responding to this proposal, each firm is encouraged to visit these locations. Leasees Name Activity Location Ruby's Diner Restaurant End of Seal Beach Pier River's End Restaurant 1� Street parking lot Under the Rainbow Day Care 357 12th Street Fun n Sun Day Care 343 12th Street Norm's Big Fish Sport Fishing End of Seal Beach Pier Torch Operating Co. Mineral Extraction Pier Landing and Parking Track III Office Old City Hall Ned's Produce Office Old City Hall Edgewood Office Old City Hall S.B. Cable Foundation Office Old City Hall Bill Knight Office Old City Hall Hello Gorgeous Hair Salon Old City Hall Vacant space Old City Hall Vacant space Old City Hall The contact person for further information or questions regarding this request for proposal is June Yotsuya, Assistant to the City Manager, who can be reached at (562) 431 -2527, Ext.308. III. ASSISTANCE TO BE PROVIDED TO THE PROPERTY MANAGER A. Existing leases The City will provide the selected property management firm with lease documentation, payment history, lease amendments. B. Key contact person The City will assign a key contact person who will work with the selected property manager on issues that arise related to managing the properties. IV. PROPOSAL REQUIREMENTS A. Sealed Proposals Proposals must be submitted in a sealed envelope or package bearing the title "City of Seal Beach Property Management Proposal" and the proposer's name and address. The proposer shall submit two (2) copies of the completed proposal and other pertinent information to the office of the City Manager no later than 2:00 p.m., on Thursday, September 13, 2001, at 211 Eighth Street, Seal Beach, California 90740. It is the responsibility of the proposer to ensure that the proposal is delivered on time. Any proposal received after the deadline will be disqualified. B. Public Information All submitted proposals and information included therein and attached thereto, shall become public record upon receipt by the City Council for consideration of selection of property manager. V. MINIMUM QUALIFICATIONS Finns proposing shall meet the following minimum qualifications: A. Finn shall have or document a minimum of five years experience in commercial leasing and property management. B. Proposing firths must demonstrate experience with leasing and managing coastal properties. C. Demonstrate a diversity of experience with leasing and managing uses such as restaurants, small office spaces, and non traditional commercial locations. VI. SELECTION PROCESS AND CRITERIA A. Selection Committee A selection committee designated by the City Manager will review all proposals. The selection process will involve the review of the proposal for compliance with the requirements of the RFP, qualifications of the firm and references. Based upon the selection committee's review of the proposals, interviews may be scheduled at Seal Beach City Hall with the most qualified proposers. Finalists will be noted of specific times and will be allowed a total of thirty minutes for their presentation and to answer questions from the selection committee. The selection committee will rank the fines and Staff will recommend the top ranked fine to the City Council for award of contract. B. Contents of Proposal Proposals shall contain the following information: 1. A general summary of the fine's background and key personnel. The key person assigned to Seal Beach should be highlighted in the background material. 2. A discussion of your firm's relevant experience that includes any governmental leasing experience. 3. A discussion of how the fine will manage the City's assets to maximize revenues to the City. Innovative techniques of leasing unique spaces and locations should be addressed. The proposal should also include a discussion on how the firm manages lease renewals, rent delinquencies, evictions, lease monitoring and advertising of vacant spaces. 4. A list of 10 references that have similar leasing characteristics to the properties owned by the City. 5. A proposed cost of providing the service that must include at a minimum the following items: Management fee for rent collection, delinquencies, evictions, tenant management and general services. Leasing commissions for new leases. • Leasing commissions for renewal of leases. • Hourly rate for special services. C. Criteria for Selection Selection of the firm shall be based upon the following criteria: 1. Technical qualifications and experience of key members of the firm. 2. Experience with similarly sized clients. Governmental agency experience is preferred but not required. 3. Capability of handling all aspects of property management functions. 4. Ability to provide continuity with City staff from year -to -year. 5. Thoroughness of firm's proposed response to the City's RFP. 6. Clearly defined understanding of work to be performed and ability to meet the goal of maximizing revenues to the City. 7. Reasonableness and competitiveness of costs. The award of the contract will not be based on the lowest fee proposed, but on a combination of all of the above factors. VII. TIME SCHEDULE The City anticipates using the following time schedule, which should result in the selection of a firm by October 9, 2001: August 13, 2001 August 14, 2001 September 13, 2001 September 14-28, 2001 October 8, 2001 October 9, 2001 Attachments: Authorization of RFP release by City Council Mail RFP's to firms Written proposals due by 2:00 p.m. Review of proposals Recommendation to City Council Notification of bidders Contract for Property Management Services REQUEST FOR PROPOSALS PROPERTY MANAGEMENT SERVICES LIST 1. Bancap 8. Inco Property Management 6285 E. 2nd Street, Suite 102 1962 Freeman Avenue Long Beach, CA 90803 Long Beach, CA 90804 (562) 598 -3351 (562) 498 -3395 2. Berro Property Management 9. Insignia 1641 E. 0 Street 630 Newport Ctr. Dr., Ste. 100 Long Beach, CA 90802 Newport Beach, CA 92660 (562) 432 -3444 3. Birtcher Real Estate Group 27611 La Paz Road Laguna Niguel, CA 92677 (949) 643 -7700 4. Cushman & Wakefield 555 S. Flower St., Ste. 4200 Los Angeles, CA 90071 (213) 9555100 5. Dauks 3816 E. 0 Street Long Beach, CA 90814 (562) 438 -9731 6. CB Richard Ellis 10. JTM 408 Termino Avenue Long Beach, CA 90814 (562) 438 -9758 11. Keystone Pacific 16845 Von Karman, Ste. 200 Irvine, CA 92606 (949) 833 -2600 12. Voit Commercial Brokerage 18500 Von Karman Avenue Suite 150 Irvine, CA 92612 (949) 851 -5110 Pacific Corporate Towers 13. Wohl Investment Company 200 N. Sepulveda Blvd., Ste. 300 2402 Michaelson Dr., Ste. 170 El Segundo, CA 90245 Irvine, CA 92612 (310) 563 -8600 (949) 955 -0115 7. Grubb & Ellis 4695 MacArthur Court, Ste. 600 Newprot Beach, CA 92660 (949) 608 -2000 AGREEMENT FOR PROPERTY MANAGEMENT SERVICES THIS AGREEMENT is made and entered into this _ day of, 2001, by and between the CITY OF SEAL BEACH, a municipal corporation, hereinafter referred to as "CITY" and hereinafter referred to as "PROPERTY MANAGER." WITNESSETH: WHEREAS, on August 14, 2001, CITY invited bids for a property management fine; and WHEREAS, pursuant to said invitation, PROPERTY MANAGER submitted a proposal which was accepted by CITY for said professional services; and WHEREAS, PROPERTY MANAGER is recognized as a competent and qualified property management fine. NOW,THEREFORE, for and in consideration of the mutual promises, obligations, and covenants contained herein, the parties herein agree as follows: 1. TERM. The term of this Agreement shall be for a period of one (1) year, beginning October 15, 2001 and ending October 15, 2002. The City shall have the sole discretion to extend the term for two additional one -year terms. 2. CITY S OBLIGATIONS. For and in consideration of PROPERTY MANAGER furnishing service(s) specified in this Agreement CITY shall pay PROPERTY MANAGER compensation in the following manner. Monthly management fee $ Leasing commission Lease renewal Special services (hourly rate) Contract extension compensation: Year two: Monthly management fee $ Leasing commission Lease renewal Special services (hourly rate) Year three: Monthly management fee $ Leasing commission Lease renewal Special services (hourly rate) Payments to PROPERTY MANAGER shall be made within thirty (30) days after receipt by CITY of invoices from PROPERTY MANAGER which shall be rendered not more often than monthly. Special services of any nature outside the scope of this Agreement shall be billed separately by PROPERTY MANAGER and must be specifically authorized in writing by CITY in advance of such additional services proposed to be provided. 3. PROPERTY MANAGER OBLIGATIONS. For and in consideration of payments and agreements hereinafter mentioned to be made and performed by CITY, PROPERTY MANAGER agrees with CITY to furnish those services as set forth in Attachment 1, Request for Proposal for Property Management Services, attached hereto and incorporated herein by reference, and to perform as required by this Agreement and the said specifications. 4. INSURANCE. PROPERTY MANAGER shall procure and maintain for the entire term of this Agreement, valid insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by PROPERTY MANAGER, or PROPERTY MANAGER agents, representatives, employees, or subcontractors. PROPERTY MANAGER shall further maintain professional liability insurance in the amount of one million dollars ($1,000,000.00) to protect CITY for PROPERTY MANAGER'S negligent ads, errors, and /or omissions of a professional nature. 5. HOLD HARMLESS AND INDEMNIFICATION. PROPERTY MANAGER, agrees to indemnify, defend, and hold harmless CITY, its officials, officers, employees, representatives, and agents from and against all claims, lawsuits, liabilities, or damages of whatever nature including without limitation all consequential damages arising out of or in connection with, or relating in any manner to work performed by PROPERTY MANAGER, his agents, employees and subcontractors, and employees thereof pursuant to this Agreement. PROPERTY MANAGER shall investigate and indemnify CITY and do whatever is necessary to protect CITY, its officials, officers, employees, agents, and representatives as to any such claims, lawsuits, liabilities, or damages. At City's option, City may select counsel of its own choice to defend itself from any claim, lawsuit or action arising out of or in connection with, or relating in any manner to work performed by PROPERTY MANAGER, his agents, employees and subcontractors, and employees thereof pursuant to this Agreement. PROPERTY MANAGER shall reimburse City for all costs associated with its defense, including but not limited to attorneys fees, expert witness fees and court costs, as each is incurred. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon written approval by the CITY MANAGER or his /her designee. 7. TERMINATION. If, at any time during the tern of this Agreement, CITY determines that PROPERTY MANAGER is not faithfully abiding by any term or condition contained herein, CITY may notify PROPERTY MANAGER in writing of such defect or failure to perform; which notice must give PROPERTY MANAGER a ten (10)-day notice of time thereafter in which to perform said work or cure the deficiency. If PROPERTY MANAGER has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of this Agreement and CITY may terminate this Agreement immediately by written notice to the AUDITOR to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities or rights under this Agreement except, however, any and all obligations of PROPERTY MANAGER surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination hereof. In said event, PROPERTY MANAGER shall be entitled to the reasonable value of its services performed from the beginning of the period in which the breach occurs up to the day it received CITY S Notice of Termination, less any offset from such payment representing the CITYS damages from such breach. CITY reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the CITY'S sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall AUDITOR be entitled to receive in excess of the compensation quoted in its bid. 8. INCORPORATION BY REFERENCE. The Request for Proposal for Property Management Services, Attachment 1 hereto, and the proposal submitted by , on 9. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the final, complete, and exclusive agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein or executed as an amendment hereto, shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 10. CONTRACT ASSIGNMENT. PROPERTY MANAGER shall not assign, transfer, convey, or otherwise dispose of this Agreement, or its right, title, or interest, or its power to execute such an Agreement to any individual or business entity of any kind without the prior written consent of CITY. 11. INDEPENDENT CONTRACTOR a. PROPERTY MANAGER is, and at all times hereafter shall be, an independent contractor of CITY during the entire term of this Agreement. PROPERTY MANAGER specifically recognizes and acknowledges said status as an independent contractor and not as an employee of CITY. All personnel of PROPERTY MANAGER shall be employees of PROPERTY MANAGER and not employees of CITY. PROPERTY MANAGER shall pay all salaries and wages, employers social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all withholding taxes. b. PROPERTY MANAGER shall comply with all Federal and State statutes and regulations relating to the employer /employee relationship including, but not limited to, minimum wage, non- discrimination, equal opportunity, workers compensation, hazardous/unsanitary or dangerous surroundings, the Fair Labor Standards Act 29 USCA Section 201 at sec., and the Immigration Reform and Control Act of 1986 * USCA Section 245(a) at sea. 12. ANTI - DISCRIMINATION. In the performance of the terms of this Agreement, PROPERTY MANAGER agrees that it will not engage in discrimination in employment of persons because of the age, race, color, sex, national origin or ancestry, or religion of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735. 13. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: CITY: City of Seal Beach Attn: City Manager 211 Eighth Street Seal Beach, CA 90740 PROPERTY MANAGER: Attention: All notices sent pursuant to this Agreement shall be deemed received (1) immediately if served by personal delivery, and (2) on the fifth day after deposited in the custody of the U.S. Postal Service if served by mail. 14. ATTORNEY'S FEES. In the event an action is commenced by either party to enforce any rights under this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and court costs, in addition to any other relief granted by the Court. 15. CONFLICT OF INTEREST. a. All information gained by PROPERTY MANAGER in performance of this Agreement shall be considered confidential and shall not be released by PROPERTY MANAGER without CITY'S prior written authorization excepting that information which is a public record and subject to disclosure pursuant to the Public Records Act, Government Code Section 6250 at sea. PROPERTY MANAGER, its officers, employees, agents, or subcontractors, shall not voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the project or cooperate in any way with a party who may be adverse to CITY or whom PROPERTY MANAGER reasonably should know may be adverse in any subsequent litigation. PROPERTY MANAGER shall incur no liability under this Agreement for materials submitted by it which are later released by CITY, its officers, employees, or agents. PROPERTY MANAGER shall also incur no liability for statements made by it at any public meeting, or for any document released by it for which prior written CITY authorization was obtained. If PROPERTY MANAGER or any of its officers, employees, consultants, or subcontractors does voluntarily provide information in violation of this Agreement, CITY has the right to reimbursement and indemnity from PROPERTY MANAGER for any damages caused by PROPERTY MANAGER'S conduct— including attorneys fees. PROPERTY MANAGER shall promptly notify CITY should PROPERTY MANAGER its officers, employees, agents or subcontractors be served with any Summons, Complaint, Subpoena, Notice of Deposition, Request for Documents, Interrogatories, Request for Admissions or other discovery requests from any party regarding this agreement and the work performed thereunder. CITY retains the right, but not the obligation, to represent PROPERTY MANAGER and /or to be present at any deposition, hearing, or similar proceeding. PROPERTY MANAGER agrees to cooperate fully with CITY and to provide CITY with the opportunity to review any response to discovery requests provided by PROPERTY MANAGER. However, CITY'S right to review any such response does not imply or mean the right by CITY to control, direct, or rewrite said response. CITY warrants that PROPERTY MANAGER will have fully met the requirements of this provision by obtaining CITY'S written approval prior to providing documents, testimony, or declarations; consulting with CITY before responding to a Subpoena or court order, in the case of depositions upon providing Notice to CITY of same; or providing CITY opportunity to review discovery responses prior to submission. For purposes of this section, a written authorization from CITY shall include a "faxed" letter. b. PROPERTY MANAGER covenants that neither they nor any officer or principal of their firm have any interests, nor shall they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance of their services hereunder. PROPERTY MANAGER further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subcontractor. PROPERTY MANAGER further covenants that PROPERTY MANAGER has not contracted with nor is performing any services directly or indirectly, with the developers) and/or property owner(s) and /or firm(s) and /or partnerships owning property in the CITY or the study area and further covenants and agrees that PROPERTY MANAGER and /or its subcontractors shall provide no service or enter into any contract with any developer(s) and /or property owners) and /or firm(s), and /or partnership(s) owning property in the CITY and /or study area prior to completion of this Agreement. 16. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and PROPERTY MANAGER hereby represent and covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. CITY OF SEAL BEACH: PROPERTY MANAGER: By: By: William Doane Mayor ATTEST: City Clerk APPROVED AS TO FORM: Quinn Barrow City Attorney