HomeMy WebLinkAbout12 - Marinapark Management Contract(p)
January 12, 1998
Agenda Item # 12
DATE:
TO:
FROM:
SUBJECT:
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
January 12, 1998
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
F
AN ! 1
APPROVED
Honorable Mayor and Members of the City Council
Peggy Ducey, Deputy City Managertw
Marinapark Management Contract
BACKGROUND
In December, the City Council Finance Committee reviewed the extension of
the Marinapark management contract for Bendetti Management Group. The
new Agreement would terminate on March 31, 2000, to coincide with the end
of the current mobile home park leases. Attached is the Committee staff
report that provides background on the proposed Agreement. The
Committee unanimously recommended approval of the Property
Management Agreement, and directed staff to forward it to the City Council
for action.
RECOMMENDATION
Approve the Property Management Agreement with Bendetti Management
Group for management of the Marinapark Mobile Home Park.
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
DATE: November 25, 1997
TO: Finance Committee
FROM: Peggy Ducey, Assistant to the City Manager
SUBJECT: Marinapark Management Contract
BACKGROUND
Bendetti Management Group has provided management services for the City -
owned Marinapark Mobile Home Park since 1994. The City's contract with
Bendetti terminated on June 30, 1997, and they are now working on a month -
to -month basis.
At a minimum, the City will require management services for Marinapark
until the lease expires on March 31, 2000. Bendetti has established a good
working relationship with the current residents, and given the uncertainty of
the future status of the park, it is recommended that the City renew the
contract with Bendetti Group, rather than bidding the new contract, which
would mean further uncertainty for the park residents.
The attached draft agreement indicates the changes to the existing agreement,
which are:
1. Increase the management fees from 4% to 5% - Bendetti has requested an
increase from 4% to 5% of gross revenues for their management fee. Staff
contacted a number of mobile home management companies to verify the
standard management fee, which ranged from 4% to 12% depending on
the park's income. Since Marinapark is a fairly small park, with a fixed
lease revenue stream, 5% is a reasonable management fee at this time.
This would increase the annual management from approximately $24,000
annually to $30,000 annually.
2. Change employment status of on -site managers- When Bendetti Group
took over park management, the City required that Bendetti hire the on -
site managers, for which the City retained some employment -related
responsibility. These managers are no longer employed at Marinapark, so
Bendetti will now have total responsibility and liability for the
employment, supervision and discharge of future on -site managers.
3. Remove minimum balance provision- Bendetti has also removed the
provision that they retain $10,000 monthly for emergency expenditures.
I)-
RECOMMENDATION
Recommend approval of the Property Management Agreement with Bendetti
Management Group and direct staff to forward to the City Council for review
and action.
PROPERTY MANAGEMENT AGREEMENT
I. PARTIES
This Agreement is made by and between THE CITY OF NEWPORT BEACH, a
municipal corporation (hereinafter called "City") and BENDETTI MANAGEMENT
GROUP (hereinafter called "Agent").
II. EXCLUSIVE AGENCY:
In consideration of the property management services to be rendered by Agent
pursuant to this Agreement, City hereby designates Agent 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").
III. TERM:
The term of this Agreement is for the period beginning upon final approval by both
parties and ending March 31, 2000. Either party may terminate this Agreement without
cause upon thirty (30) days written notice.
W. AGENT'S DUTIES:
Agent 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
Agent further agree that Agent's authorities, duties, and responsibilities with respect to
the park shall be as follows:
Trust Account: Upon the execution of this Agreement, Agent shall
establish and maintain with an institution of Agent's choice, a Trust
Account for the deposit of all monies collected from the Park. The Agent
shall have the right and authority to draw on the Trust Account for any
and all payments, which Agent makes in discharging Agent's obligations
pursuant to the terms of this agreement, including the payment of Agent's
fee as provided within the terms of this Agreement.
2. Rent Collection: Agent shall take all reasonable and necessary action to
collect rentals, charges, or other income when due from tenants of the
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