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HomeMy WebLinkAbout13 - Management Agreement for Marina ParkCITY COUNCIL AGENDA ITEM NO. 13 CITY OF NEWPORT BEACH - OFFICE OF THE CITY MANAGER 1 Ck7Y OF'wrv; ,Oni,,,...c;; J U LY 26, 1993 JUL 2 61993 � TO: MAYOR AND CITY COUNCIL I 1 FROM: DEPUTY CITY MANAGER 3 SUBJECT: MANAGEMENT AGREEMENT FOR MARINA PARK ACTION: If desired, approve and authorize the Mayor and City Clerk to execute a contract with Marina Park Residents' Association for management services subject to minor technical revisions. BACKGROUND: The previous manager of the mobile home park retired July 1, 1993 and a replacement has not yet been hired. This position requires a responsible employee who can relieve staff of the day-to-day details involved with the increasing complexity of resident requests and mobile home residency laws. Many experienced and trained managers as well as professional companies can provide this service. However, the park residents have vehemently opposed selection of any manager other than the handyman hired by the previous manager. To accommodate the wishes of the residents and the desire of staff to relinquish micro management duties, a compromise has been reached with the participation of Council Member Hedges to allow the Residents' Association to supervise the park manager. DISCUSSION: The attached contract provides to the Association the responsibility and the funds necessary to hire and supervise all personnel and to purchase all supplies for the normal operation and maintenance of the park. The funds amount to that included in the Marina Park budget for 1993-94. The contract also requires that the Association comply with all mobile home residency laws within six months. The contract has a thirty day termination clause for any reason by either party. Depending on how fast the residents can approve it, the contract will commence either August 1st or September 1 st and will terminate at the end of the fiscal year. RECOMMENDATION: The attached contract not only satisfies the immediate concerns of the residents and staff, it also provides a trial period for a proposed provision in any new lease which may be negotiated. Day to day management of a mobile home park is not an efficient use of City staff, and the residents have indicated a willingness to assume this responsibility. This contract and its thirty day termination provision provide an opportunity to test that concept with little risk. Staff recommends approval. KJD:mb Kenneth J. ;Deli o (prtorxi� PROFESSIONAL SERVICES CONTRACT (Marinapark Management) 1. PARTIES: This Agreement is made this day of 1993, by and between THE CITY OF NEWPORT BEACH, a municipal corporation (hereinafter called "City") and the Marinapark Residents' Association (herein after called "Contractor") represented by the following named individuals I , and II. EXCLUSIVE AGENCY: In consideration of the property management services to be rendered by Contractor pursuant to this Agreement, City hereby designates Contractor as the exclusive agent and representative of City for the purposes of managing and operating the mobile home park owned by City commonly known as Marina Mobile Home Park (hereinafter called the "Park"). 111. TERM: This Agreement shall become effective on the date first above written and shall terminate July 1, 1994. Either party may terminate this Agreement upon thirty (30) days written notice. IV. CONTRACTOR'S DUTIES: Contractor does hereby agree to use its best efforts to fully, effectively and efficiently manage, operate, and maintain the Park in a professional and lawful manner. City and Contractor further agree that Contractor's authorities, duties, and responsibilities with respect to the park shall be as follows: Manage, operate and maintain the Park including: a. the employment, supervision and discharge, as employees or independent contractors of Contractor, of all personnel, professional or otherwise, necessary to the proper management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City's. Contractor shall not enter any contract with any firm or individual that includes a term longer than this contract and that does not provide for a thirty -day termination coterminous with Contractor's termination, b. the customary and ordinary maintenance and repair of the Park including all landscaping, sprinklers, restrooms, employee coaches, office, signs, mail boxes and similar facilities and fixtures located above ground. Contractor shall = be responsible for major underground infrastructure repairs or for any other major repairs which are either normally the responsibility of an owner or which exceed a cost of one thousand dollars ($1,000.00), C. the supervision of any and all services and utilities necessary to the proper management, operation and maintenance of the Park, including, but not by way of limitation, water, electricity, gas, fuel, telephone, vermin extermination, rubbish hauling, window cleaning, janitorial and gardening/landscaping, Professional Services Contra Page 2 d. the maintenance of office hours and the enforcement of all Marina Park Rules and Regulations, and e. advising City regarding any and all applicable federal, state and municipal laws and ordinances and the rules, regulations and orders of any and all federal, state and municipal agencies having jurisdiction over the Park and the operation and management thereof. 2. Operating Ex e� Contractor shall pay all employee costs and all the following operating expenses: landscape, gardening, trash hauling, cleaning/maintenance supplies and specialized tradesmen such as plumbers and electricians. It is understood and agreed by the parties hereto that all costs related to the normal maintenance and operation of the Park are to be paid from Contractors funds. However, under no circumstances whatsoever shall Contractor be required to advance or otherwise expend Contractor's own funds for the benefit of the Park. 3. Contractor's Authority: City does hereby authorize and direct Contractor to do everything reasonably necessary for the proper management of the Park, including, without limitation thereto, periodic inspections, handling tenant requests, supervision of maintenance, arranging for maintenance and repairs as may be necessary for the Park, purchasing all materials and supplies, hiring independent contractors to supply services, and requesting such additional sums from City as necessary to accomplish repairs or maintenance costing in excess of one thousand dollars ($1,000.00). Contractor shall obtain City's approval for any expenditure in excess of $1,000.00 for any one item, except monthly or recurring operating charges and/or emergency repairs in excess of the maximum, if in the opinion of the Contractor such repairs are necessary to prevent additional damage and/or liability or a greater total expenditure. 4. Employee Coaches: Contractor shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. Contractor shall ensure that these coaches are vacated upon termination of this contract. Records: Contractor shall within six (6) months from the commencement of this Agreement compile those records, books, and accounts as required by applicable state and federal law pertaining to mobile home parks. V. OWNER'S DUTIES: Contractor and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: Information to Contractor: City agrees to promptly furnish Contractor with all documents and records to properly manage the Park, including, but not limited to, copies of existing service contracts, copies of all insurance policies and any required endorsements thereto which are carried by City during the term of this Agreement. 2. Hold Harmless: Except for Contractor's misconduct or negligence, City shall indemnify and save the Contractor and its officers, directors, shareholders, employees, representatives, successors, and assigns, harmless from any and all claims, costs and expenses, attorney's fees, litigation, liabilities, and damages arising from or connected with the Park or exercise of any of the duties, obligations, powers, or authorities herein or hereafter granted to Contractor. Professional Services Contrr Page 3 3. Insurance: The City is a self -insured public agency. City agrees to consider all reasonable recommendations of Contractor with respect to insurance coverage to minimize the cost thereof and the possibility of bodily injury, property damage, and loss of rental income. 4. Waiver of Subrogation: City hereby waives all of its rights and those of its insurers with respect to recovery against Contractor on account of loss or damage to City's real or personal property where such loss is caused by an insurable peril, including, but not limited to fire or any of the extended coverage hazards and which damage arises out of or in connection with the Park. City shall give notice to all insurance carriers, if any, that the foregoing waiver of subrogation is contained in this Agreement. 5. Reimbursement Advances: City agrees to immediately reimburse Contractor upon demand, to the full extend for all monies advanced by Contractor carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Contractor to make such advances. g, Governmental Order to Repair, etc.: In the event that any governmental agency, authority, or department shall order the repair, alteration, or removal of any structure or matter on the Park, or if after written notice of the same to City by such body or Contractor, the owner fails to authorize Contractor or others to make such repairs, alterations, or removals, Contractor shall be released from any responsibility in connection therewith, and City shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on Contractors part. 7. Contractor's Fee: City shall pay Contractor for its property management services four thousand nine hundred dollars ($4,900.00) per month in advance payable on the first day of each month. Contractor shall maintain records and accounts of all expenditures for inspection by the City at any time. At the termination of this contract all unexpended funds shall be returned to the City. 8. Icy to Cooperate: City agrees to cooperate with Contractor to facilitate Contractor's performance on its duties hereunder. V 1. MISCELLANEOUS TERMS: 1. Gov .rninq Law: This Agreement shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of California. 2. Succesa= This Agreement shall be binding upon the parties hereto, their legal representative, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Contractor or City without the prior written consent of the other party. 3. Relationship of Parties: Under no circumstances shall this Agreement be construed as creating either a partnership or an employer/employee relationship between the parties hereto. 4. LegalCost: Where legal assistance is required for such matters as enforcing the terms of any mobile home lease, the collection of rents, or eviction proceedings, such action shall be through counsel designated by City and shall be at City's expense. Furthermore, in the event Contractor or City shall institute legal proceedings against the other arising out of the terms of this Agreement or the performance hereunder, the prevailing party shall recover form the other, all attorney's fees, costs, and expenses incurred in any such action. Professional Services Contra Page 4 5. Notices: Any notice required under the terms herein shall be deemed given upon the placing of it in the United States Mail, postage prepaid, return receipt requested, and addressed to the address designated below. Said address may be changed by either party by mailing written notice to the other party at the last designated address of the other party as provided herein. 6. Waiver: No failure by City or Contractor to insist upon the strict performance of any covenant, agreement, term or condition of this Agreement shall constitute a waiver of any such breach or subsequent breach. 7. Entire Agreement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings bewteen the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: CITY OF NEWPORT BEACH Date: Attest: Clarence J. Turner, Mayor City Clerk Approved as to form: City Attorney CONTRACTOR: MARINAPARK RESIDENT'S ASSOCIATION Date: 0 President 1770 West Balboa Blvd Newport Beach CA 92663 Vice President Treasurer