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HomeMy WebLinkAboutC-2983 - Marinapark Mobilehome ManagementTHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE PODCY NUMBER POUCYEFFECTIVE POUCYEXPIRAMON LIMITS LTR DATE (MM,DD/YY) DATE (MMVDD/YY) GENERAWABILITY GENERAL AGGREGATE $ 1,000,00U ]{ COMMERCIAL GENERAL LABILITY PRODUCTS - COMP /OP AGO. $ 1,000,00( A CLAIMS MADEa OCCUfl. (94)1022877Q39 11/01/94 11/01/95 PERSONAL AADV. INJURY $ 1,000,00( OWNER'S & CONTRACTOR'S PRO) EACH OCCURRENCE $ 1,000,00( AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS GARAGE LIABILITY EXCESS UABILITY FIRE DAMAGE (lwepemm) MED. EXPENSE (Any COMBINED SINLIMIT BODILY INJURY (Per person) BODILY INJUR (Per aaoiefenL) PROPERTY DAMAGE $ EACH OCCURRENCE $ AGGREGATE $ OTHER THAN UMBRELLA FORM j I SSTATUTORY �OR' Y '+ I^IT WORKERS COMPENSATION EACH ACCIDENT DISEASEOLICY UMIT AND EMPLOYERS' LIABILITY DISEASE —EACH EMPLOYEE j $ OTHER A CRIME (94)1022877439 I 11/01/94 11/01/95 $100,000 $1,000 DEDUCTIBLE DESCRIPTION OF OPERATIONSILOCATI ONSNEHICLES/SPECIAL ITEMS SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF NEWPORT BEACH EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL 1HImnygmkxT® ATTN: KEN DELINO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE 3300 NEWPORT BLVD. LEFT' eA$X �LN04T $mSiwDCXX1uWIWaRO xD� aa[7w1XN� NEWPORT BEACH, CA 92659 -8915 hummixym AUTHORIZED REPRESENTATIVE n �. 11/14/94 PRODUCER ARMSTRONG/ROBITAILLE INS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE 17501 E. 17th St. #200 POLICIES BELOW. P.O. Box 4147 COMPANIES AFFORDING COVERAGE Tustin, CA 92681 -4147 COMPANY A CNA LETTER — COMPANY B LETTER LETTERNY C INSURED BENDETTI MANAGEMENT GROUP 1176 Main St. Irvine, CA 92714 LETMTER Y D KS COMPANY E LETTER THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE PODCY NUMBER POUCYEFFECTIVE POUCYEXPIRAMON LIMITS LTR DATE (MM,DD/YY) DATE (MMVDD/YY) GENERAWABILITY GENERAL AGGREGATE $ 1,000,00U ]{ COMMERCIAL GENERAL LABILITY PRODUCTS - COMP /OP AGO. $ 1,000,00( A CLAIMS MADEa OCCUfl. (94)1022877Q39 11/01/94 11/01/95 PERSONAL AADV. INJURY $ 1,000,00( OWNER'S & CONTRACTOR'S PRO) EACH OCCURRENCE $ 1,000,00( AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS GARAGE LIABILITY EXCESS UABILITY FIRE DAMAGE (lwepemm) MED. EXPENSE (Any COMBINED SINLIMIT BODILY INJURY (Per person) BODILY INJUR (Per aaoiefenL) PROPERTY DAMAGE $ EACH OCCURRENCE $ AGGREGATE $ OTHER THAN UMBRELLA FORM j I SSTATUTORY �OR' Y '+ I^IT WORKERS COMPENSATION EACH ACCIDENT DISEASEOLICY UMIT AND EMPLOYERS' LIABILITY DISEASE —EACH EMPLOYEE j $ OTHER A CRIME (94)1022877439 I 11/01/94 11/01/95 $100,000 $1,000 DEDUCTIBLE DESCRIPTION OF OPERATIONSILOCATI ONSNEHICLES/SPECIAL ITEMS SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF NEWPORT BEACH EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL 1HImnygmkxT® ATTN: KEN DELINO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE 3300 NEWPORT BLVD. LEFT' eA$X �LN04T $mSiwDCXX1uWIWaRO xD� aa[7w1XN� NEWPORT BEACH, CA 92659 -8915 hummixym AUTHORIZED REPRESENTATIVE n �. it r�1# PRODUCER ARMSTRONG/ROBITAILLE INS. » >: ISSUE DATE (MWDD/YY) C 06113/94 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE 17501 E. 17th Street #200 POLICIES BELOW. P.O. Box 4147 COMPANIES AFFORDING COVERAGE Tustin, CA 92681 -4147 COMPANY A CONTINENTAL INS. LETTER O KS COMPANY LETTER B CNA INSURED LETTTER "Y C BENDETTI MANAGEMENT GROUP COMPA LETTERNV D 1176 Main St. #100 Irvine, CA 92714 COMPANY E LETTER RAM THIS IS TO CERTIFY THAT THE POLICIES OF INSUR4NCE ! ISTEC BE! ON' 4ANE BEEN ISSUPD TO THE !NSUP.EC ^!.4ME0 P.BOVE FO9 THE POLICY PER'OC INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENIT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED eY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/VY! LIMITS A GENERAL LIABILITY �[ COMMERCIAL GENERAL LIABILITY CLAIMS MADE OCCUR. OWNER'S & CONTRACTOR'S PROT X Persondiwury [93]CBPO6141019 1 VO1/93 11/01/94 GENERAL AGGREGATE $ 2,000,000 PRODUCTS- COMP /OP AGG. $ 1,000,000 PERSONAL & ADV. INJURY $ 1,000,000 EACH OCCURRENCE $ 1,000,000 FIRE DAMAGE (Anyone fire) $ 50,000 MED. EXPENSE (Any one person) $ 1,000 AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT IS ANY AUTO BODILY INJURY (Per person) $ ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS BODILY INJURY (Per accident) $ GARAGE LIABILITY PROPERTY DAMAGE $ SS LIABILITY LIABILITY EACH OCCURRENCE Is AGGREGATE $ OTHER THAN UMBRELLA FORM STATUTORY LIMITS WORKER'S COMPENSATION EACH ACCIDENT $ AND DISEASE — POLICY LIMIT $ DISEASE —EACH EMPLOYEE $ EMPLOYERS' LIABILITY OTHER B CRIME [93]CBP06141019 11/01/93 11/01/94 $100,000 $1,000 Ded. DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLEWSPECIAL ITEMS �7iF1�R']'�GG£1E11 .< ': em1l.mTlybll . rgua���atl��lrNvIL�I�a���Lt����a�u� :.. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF NEWPORT BEACH ATTN: Ken DCIInO 3300 Newport Blvd. Newport Beach, CA 92659 -8915 EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL 78r OMMIIXXXV MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, sxT% sualx�sxrxsmac"°> OOmcasxswnzsxl�cossxwox�u +sXao>a °�'� yRx6xxxrsrassNSSX�Jahxse xxexe�. AUTHORIZED REPRESENTATIV s< PAC601 200 026 'ON 099919ZPTL '3TIIti1IH0a'SNi81SWi10 8T :£T v6/2T/90 (mv6 Ism6 PATE Y) 0 LM14 "� IS CE RCATE IS MS A A —MATTER OF INFOR ONLY AID PRODUCER CONFERS NO RIGHTS UPON THE CERTIFICATE MOLDER. THIS CERTIFICATE ARMCTR(jNft1R()RTTAnJ-F. INS, 0048 NOT AMENIX EXTEND an ALTCN TO IG OOYEMOE AFFORDED BY THE 17501 E. 17th Street #200 POLICIES BELOW. P.O. Bmr 4147 COMPANIES AFFORDING COVERAGE TDStin, CA 92681 -4147 A CONTINENTAL 1NS LETTER KS COWANY LETIU B CNA INAUREP - BENDETTI MANAGEMENT GROUP LC I176 Main St. MI00 Irvine, CA 92714 t.Mx« BELOW HAYE BEEN ISSUED TO TFE INSURED NAMED ABOVE FOR THE POLICY PERIOD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY OC ICOLCO Oil MAY PSRTA;K THE INSURANCE AFPORCED EY THB POLICIES DE3CRIBW HEIgPI IB SIiBJECT TU ALL IHE I LHMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LZIGTS SHOWN MAY HAVE BEEN REDUCED BY PAZ) CLANS._. TYPEYYMYUNAJP:! POLICTNUMSER POLK,T SAiSCT1YS T'OIJCYEJn9nATIRN DATE IMMOONYI I DATE IMMJCOM') LIMITS GENERAL LIABILITY OFNPRAI AORAPPATP F X COMMERCLLL GENERAL UAZLJTY ffWV *L AADV.MJURY S I CMVISLIAOEI� OCCUR. [931CRP66141019 I 1VOV93 I 1VOt/94 EACHOWORRFNCE B 1,na►uoo OANEF'S E CONTRACTOR8 PROT�I FIRS OAMAOS PI"}�"` 5 S OBO X PPESODAI IAIOL'y I WED, IDW815E (AN'an peSeR 7 1,000 AUTOMOSILELIABIUTY crOAWInEO SlNali 5 i uIAT ANY AUTO 5 All OWNPI Aimq BODILY INAJRY pemX SCHEDULSO AUTOS 5 wRin llJRt¢ 60ILLYYAIbU Y NON4 MED AUTOS AAFLAME UASIUTY I I PROPERTY W VO-E� APJ:ccA LUCUTr cADHOewnnence 5 AGGREWTE 5 OTHSA T1+AN UMBf1ELLA 'Ot1M STATUTOKY UNITS �d WORKER'S COMPENSATION S Eb'H ACCIDENT AND DMFASE- AOUOYUMT 5 OASEASE -EACH EMPLOYEE :5 EMPLOYERS' LIABILITY OTHER B CRIME [931CRIW141019 11101193 11/01194 ;100,000 $1,000 De& DESORPTION OF OPERANIONGRACATJGNWE NICLESNPEC!" 010M ......... J 1 , .'1�':,�b'w i. %• fi N 4Y.H:wY '}`krss. yiil`k4i px Y'IRSIIa'.Y '�'. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF NEWPORT BEACH EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL NMXIYEE G MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE ATTN.- KBD 1iB1100 3300 Newport Blvd. LEFT' Newport Beach, CA 92659 -8915 Akn%CRGEO REPRESENTA PAC6Pr w 6m 0= ,.f x. t. o. sa.; v .....s3`rzFs.,`"E-? "'x"�"wm.':`+.:. 200 026 'ON 099919ZPTL '3TIIti1IH0a'SNi81SWi10 8T :£T v6/2T/90 0 PROPERTY MANAGEMENT AGREEMENT 1. 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. IV. 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: 1. 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 1 0 • Park in accordance with the terms of their tenancies and may execute all receipts or any other documents reflecting receipt of said sums. 3. Operations and Management: Manage, operate and maintain the Park, including, but not by way of limitation: a) the employment, supervision and discharge, as employees or independent contractors of Agent, of the on -site managers and of all other personnel, professional or otherwise, in the reasonable opinion of Agent necessary to the property management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City. b) the customary and ordinary maintenance and repair of the Park and its improvements, fixtures, appurtenances and grounds, c) the procurement and supervision of any and all services and utilities in the reasonable opinion of Agent 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, d) advising City regarding any and all insurance which in the reasonable opinion of Agent is necessary to adequately protect City, Agent, their employees and agents and the Park or as required by law, including, but not by way of limitation, where appropriate and applicable, workmen's compensation insurance, public liability insurance, fire, casualty and extended coverage insurance, burglary and theft insurance, and e) the prompt and timely compliance with 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. f) the administration and maintenance of all lease documents and park regulations. g) the administration, management and financing of capital improvements to the park which may be approved by owner and which have a total cost of $10,000 or less. 2 0 4. Operating Expenses: From gross revenues collected from the Park, Agent shall: a) Pay all employee salaries at rates authorized by Owner. b) Pay all operating expenses incurred through renting, servicing, maintaining, or repairing the Park and such additional expenses in connection with the Park as may be authorized by Owner. C) Deduct Agent's fee described under "Agent's Fee" below and any other fees due to Agent under the terms of this Agreement. It is understood and agreed by the parties hereto that all costs related to the maintenance and operation of the Park are to be paid from City's funds. Under no circumstances whatsoever shall Agent be required to advance or otherwise expend Agent's own funds for the benefit of the Park. 5. Agent's Authority: City does hereby authorize and direct Agent to do everything reasonably necessary, in the name of and at the expense of City 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, recommending independent contractors to supply services, and requesting such sums from City as Agent deems necessary to accomplish the foregoing. Agent shall obtain City's approval for an expenditure in excess of $500.00 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 Agent such repairs necessary to prevent additional damage and /or liability or a greater total expenditure or to maintain services or conditions to the tenants as called for in their tenancy. Agent shall notify City immediately whenever emergency repairs have been ordered. 6. Employee Coaches: Agent shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. Records: a) Agent shall compile and maintain those records, books and accounts as required by applicable state and federal law pertaining to mobile home parks. 3 9 0 b) Agent shall maintain full and accurate books and records of the accounts of the Park, which shall be open to the inspection of Owner at the office of Agent after reasonable notice to Agent. Agent shall render to Owner a statement on the 20th day of each month showing all receipts and disbursements and reflecting the financial conditions of the park for the month immediately proceeding. Owner shall retain the right at any time without notice to inspect and /or audit the books and records of agent relative to the Park. 8. Payments: On the 20th day of each month, Agent shall forward to the Owner the balance remaining after all necessary charges have been made as provided in the Agreement. Said monthly statement shall be deemed accurate and correct between the parties unless Owner notifies Agent in writing. In the event there is a deficit in the account of the Park, Agent shall notify Owner of this deficiency, and Owner agrees to forward said amount to Agent within seventy -two (72) hours after notice. 9. Indemnity: Agent shall defend, indemnify and hold harmless the City and its officers, employees, and representatives, with respect to any claim or loss arising out of or in any way related to agent's willful misconduct, fraud, negligence or failure to perform duties required by this agreement. V. OWNER'S DUTIES: Agent and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: 1. Information to Agent: City agrees to promptly furnish Agent 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 Agent's misconduct or negligence, City shall indemnify and save the Agent 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 of the performance or exercise of any of the duties, obligations, powers, or authorities herein 4 0 0 or hereafter granted to Agent. 3. Insurance: The City is a self insured public agency. City agrees to consider all reasonable recommendations of Agent 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 Agent 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 Agent, upon demand, to the full extent for all monies advanced by Agent for City's accounts in carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Agent to make such advances. 6. 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 Agent, the owner fails to authorize Agent or others to make such repairs, alterations, or removals, Agent shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on City's part. 7. Agent's Fee: Owner shall pay Agent for its property management services a monthly fee equal to five percent (5 %) of gross revenues. Agent is hereby authorized to deduct the amount of said fee for said services each month, plus any other fees due Agent hereunder, as the first charge upon all gross monthly rental income. B. Additional Services Rendered: City hereby agrees that for any services rendered by Agent on City's behalf beyond the scope of this Agreement, Agent shall be paid at an hourly rate of eighty dollars ($80.00) per hour. Such additional services shall include, but not be limited to, formal rent control procedures and representation of City before governmental entities. All such additional services shall be approved by the City in writing prior to the rendering of same. Services rendered for the management and financing of capital improvements costing in excess of $10,000 shall be subject to a separate contract. 9. Duty to Cooperate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Request: City hereby represents that it is empowered and duly authorized to enter into this Agreement. The City Manager or his or her designee is authorized to grant any approvals or authorizations required of the City as part of this Agreement. VI. MISCELLANEOUS TERMS: Governing 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. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Agent 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. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the 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 Agent 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 from the other, all attorney's fees, costs, and expenses incurred in any such action. 5. Agent shall provide City with a bond or similar agreement of a third party to indemnify the City for any loss due to theft, embezzlement, default by agent or its employees, officials or representatives. The bond shall be in the sum of $100,000 per occurrence. The form and content of the bond shall be approved by the City Attorney and the City Manager. 6. 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. 6 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. 7. Waiver: No failure by City or Agent 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. 8. Entire Agreement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: CITY OF NEWPORT BEACH Date: By: / e i . Murp y, 'y Manager 3300 Newport Blvd. Newport Beach, CA 92663 APPROVED AS TO FORM: 7 AGENT: BENDETTI MANAGEMENT GROUP Date: By: Ro . Bendetti, Principal 117 Main Street, Suite 100 Irvine, CA 92614 0 0 CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX )768, NEWPORT BEACH, CA 92658 -8915 (714) 644 -3005 TO: FINANCE DIRECTOR FROM: CITY CLERK DATE: June 30, 1994 SUBJECT: Contract No. C -2983 Description of Contract Property Management for Marina Mobile Home Park Effective date of Contract May 16, 1994 Authorized by Minute Action, approved on May 9 1994 Contract with Bendetti Management Group -- Address 1176 Main Street Suite 100 Irvine, CA 92714 Amount of Contract (See Agreement) "We14'4-' s Wanda E. Raggio City Clerk WER:pm Attachment 3300 Newport Boulevard, Newport Beach 0 j AGENDA ITEM NO. 17 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER MAY 9, 1994 APPROVED TO: MAYOR AND CITY COUNCIL FROM: ASSISTANT CITY MANAGER SUBJECT • ACTION: • MARINA MOBILE HOME PARK C - Z yf3 If desired, approve contract for management services with the Bendetti Group. SUMMARY: The proposed contract includes: • A 3 year term with 30 day termination without cause. • Maintenance of a trust account for the collection of rents and accounting of expenditures. • Approval by City of all expenditures above $500 including all employee salaries. • An agent's fee of 4% of gross revenues or approximately $2,000 per month. • Transfer of all day -to -day management to Bendetti. • All insurance, liability and similar provisions reviewed and approved by the City Attorney. 0i) 0 0 Page 2 BACKGROUND: For many years the Park was managed by contract employees with little legal or administrative background. Because of new statutes and case law, the City Attorney cautioned that professional management was required to decrease the City's liability exposure. With the retirement of the long time manager in July 1993, a search for a management firm resulted in the hiring of the Bendetti Group which has been retained on an interim basis for the past eight months. They have performed satisfactorily, and this contract is an extension of the current one which the Council approved in January, 1994. The Bendetti Group was first selected from a list of seven such firms based on their local presence, their expertise and their competitive rates. The Bendettis are Newport residents and own or manage several parks in the immediate area. The principals are well versed in mobile home law and the contract manager is a former council member from a nearby city. Their rates are very competitive considering the small size of Marina Park. Many companies are not interested in the smaller parks or, if they are, charge fees as high as 6 %. Larger parks requiring little attention command the lowest fees of 3 %. Considering the small size of Marina Park and the degree of attention required, the 4% fee is very competitive. DISCUSSION: The residents of Marina Park are comfortable with the Bendetti Group which has successfully dealt with all Park issues during the past eight months. The residents have been informed about this contract and have voiced no objections. The proposed contract is nearly identical to the existing contract except for the collection of rent and the making of expenditures. This will relieve the City of many administrative burdens while retaining all safeguards. Legal records, notices, registrations and other administrative tasks will be the responsibility of Bendetti who will keep abreast of new statutes and case law. All accounting will be done by Bendetti with oversight by the City. Costs will not increase despite the management fee. The total M & O budget will remain at last year's level of $80,000. This occurs partly because Bendetti increased the responsibilities of the on site employees to eliminate the need for gardeners and other tradesmen. RECOMMENDATION: The proposed contract is a cost efficient use of a proven contractor to perform the specialized services needed to manage the Park and keep the City current with new statutes and case law. The City Council Income Property Committee met on April 22, 1994 and recommended that this contract be approved. .�7 -^--� "Kenneth lino 0 • • C - a143 PROPERTY MANAGEMENT AGREEMENT I. PARTIES This Agreement is made this /% day of � 1994, by and between THE CITY OF NEWPORT BEACH, a municipal corpor tion (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 July 1, 1994 and ending June 30, 1997. Either party may terminate this Agreement without cause upon thirty (30) days written notice. IV. 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 Park in accordance with the terms of their tenancies and may execute all receipts or any other documents reflecting receipt of said sums. 0 • 3. Operations and Management: Manage, operate and maintain the Park, including, but not by way of limitation: a) the employment, supervision and discharge, as employees or independent contractors of Agent, of all personnel, professional or otherwise, in the reasonable opinion of Agent necessary to the property management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City. b) the customary and ordinary maintenance and repair of the Park and its improvements, fixtures, appurtenances and grounds, c) the procurement and supervision of any and all services and utilities in the reasonable opinion of Agent 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, d) advising City regarding any and all insurance which in the reasonable opinion of Agent is necessary to adequately protect City, Agent, their employees and agents and the Park or as required by law, including, but not by way of limitation, where appropriate and applicable, workmen's compensation insurance, public liability insurance, fire, casualty and extended coverage insurance, burglary and theft insurance, and e) the prompt and timely compliance with 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. f) the administration and maintenance of all lease documents and park regulations. g) the administration, management and financing of capital improvements to the park which may be approved by owner and which have a total cost of $10,000 or less. 4. Operating Expenses: nses: From gross revenues collected from the Park, Agent shall: a) Pay all employee salaries at rates authorized by Owner. b) Pay all operating expenses incurred through renting, servicing, maintaining, or repairing the Park and such additional expenses in connection with the Park as may be authorized by Owner. c) Deduct Agent's fee described under "Agent's Fee" below and any other fees due to Agent under the terms of this Agreement. It is understood and agreed by the parties hereto that all costs related to the maintenance and operation of the Park are to be paid from City's funds. Under no circumstances whatsoever shall Agent be required to advance or otherwise expend Agent's own funds for the benefit of the Park. 5. Agent's Authority: City does hereby authorize and direct Agent to do everything reasonably necessary, in the name of and at the expense of City 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, recommending independent contractors to supply services, and requesting such sums from City as Agent deems necessary to accomplish the foregoing. Agent shall obtain City's approval for an expenditure in excess of $500.00 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 Agent such repairs necessary to prevent additional damage and/or liability or a greater total expenditure or to maintain services or conditions to the tenants as called for in their tenancy. Agent shall notify City immediately whenever emergency repairs have been ordered. 6. Employee Coaches: Agent shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. liqIIIIIIIIIIIIIIIIIIIIII-0-T =#§ a) Agent shall compile and maintain those records, books and accounts as required by applicable state and federal law pertaining to mobile home parks. b) Agent shall maintain full and accurate books and records of the accounts of the Park, which shall be open to the inspection of Owner at the office of Agent after reasonable notice to Agent. Agent shall render to Owner a statement on the 20th day of each month showing all receipts and disbursements and reflecting the financial conditions of the park for the month immediately proceeding. Owner shall retain the right at any time without notice to inspect and/or audit the books and records of agent relative to the Park. On the 20th day of each month, Agent shall forward to the Owner the balance remaining after all necessary charges have been made as provided in the Agreement. Owner hereby authorizes Agent to retain a minimum balance in the amount of $10,000 (ten thousand dollars) in the account for emergencies and operating expenses. Said monthly statement shall be deemed accurate and correct between the parties unless Owner notifies Agent in writing. In the event there is a deficit in the account of the Park, Agent shall notify Owner of this deficiency, and Owner agrees to forward said amount to Agent within seventy -two (72) hours after notice. 9. Indemnity: Agent shall defend, indemnify and hold harmless the City and its officers, employees, and representatives, with respect to any claim or loss arising out of or in any way related to agent's willful misconduct, fraud, negligence or failure to perform duties required by this agreement. V. OWNER'S DUTIES: Agent and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: Information to Agent: City agrees to promptly furnish Agent 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 Agent's misconduct or negligence, City shall indemnify and save the Agent 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 of the performance or exercise of any of the duties, obligations, powers, or authorities herein or hereafter granted to Agent. 3. Insurance: The City is a self insured public agency. City agrees to consider all reasonable recommendations of Agent 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 Agent 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 Agent, upon demand, to the full extent for all monies advanced by Agent for City's accounts in carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Agent to make such advances. 6. 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 Agent, the owner fails to authorize Agent or others to make such repairs, alterations, or removals, Agent shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on City's part. 7. Agent's Fee: Owner shall pay Agent for its property management services a monthly fee equal to four percent (4 %) of gross revenues. Agent is hereby authorized to deduct the amount of said fee for said services each month, plus any other fees due Agent hereunder, as the first charge upon all gross monthly rental income. 5 8. Additional Services Rendered: City hereby agrees that for any services rendered by Agent on City's behalf beyond the scope of this Agreement, Agent shall be paid at an hourly rate of eighty dollars ($80.00) per hour. Such additional services shall include, but not be limited to, formal rent control procedures and representation of City before governmental entities. All such additional services shall be approved by the City in writing prior to the rendering of same. Services rendered for the management and financing of capital improvements costing in excess of $10,000 shall be subject to a separate contract. 9. Duty to Cooperate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Reguest: City hereby represents that it is empowered and duly authorized to enter into this Agreement. The City Manager or his or her designee is authorized to grant any approvals or authorizations required of the City as part of this Agreement. VI. MISCELLANEOUS TERMS: Governing 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. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Agent 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. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the 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 Agent 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 from the other, all attorney's fees, costs, and expenses incurred it any such action. 0 0 0 5. Agent shall provide City with a bond or similar agreement of a third party to Indemnify the City for any loss due to theft, embezzlement, default by agent or Its employees, officials or representatives. The bond shall be In the sum of $100,000 per occurrence. The form and content of the bond shall be approved by the City Attorney and the City Manager. 6. 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. 7. Waiver: No failure by City or Agent 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. 8. Entire Agreement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: CITY OF NEWPORT BEACH Date: By: KeVirfJ. Mu hy,4My Manager 3300 Newport Blvd. Newport Beach, CA 92663 AS TO FORM: Attorney AGENT: BENDETTI MANAGEMENT GROUP Date: By: Robert D. Bendetti, Principal 1176 Main Street, Suite 100 Irvine, CA 92714 THE DENDETTI CO BENDE ffI MANAGP_MFNT GIZO JP TO: FROM: DATE: SUBJECT: ID :7142616660 46 KEN DELlNO BILL MECHAM September 21, 1994 PARK LANDSCAPING SEP 21'94 14 :53 No.011 P.01 For the past few months the landscaping has been taken care of by the manager and the assistant manager. The residents had feelings of animosity about the landscaping prior to our involvement in the park because of the cut back from twice -a -week to once -a -week service. For a good amount of time we had few if any complaints. However, in the last few months we have begun to hear more and more dissatisfaction with the quality of work. As you have observed, the park does not look as good as it has in the past. "1i i 1" It is my recommendation that we revert to a professional landscaping 11(wi. service. I have bids for this service of $675.00 per month and $700.00 per 1'''I`" month. This decision will allow me to restructure the assistant manager's MAN %6% nI1 !':1 position and reduce our salary costs by about $300 to $350 per month. The additional cost to the park will be approximately $350.00 per month. The manager will still be performing some ongoing landscaping work as well as concentrating on the repairs and maintenance work. I would like to have this in place as soon as possible. APPROVED: ad l f y �'li�l� City of Ne rt Beach t"ban wur I m n. 3 0 IKVIKIi (:A 91714 724/261-61 1) 714!261 -6660 fax BEN�)ETTI MANAGENIENT GpouP 714261 -6111 714/201 (10(101 �� • 0 August 3, 1994 Ken Dehno Assistant City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Ken, Pursuant to our conversation of last week I wish to propose the following accounting procedure for Marinapark: 1. On the 20th of each month we will forward to the City a checkwhich will represent an educated estimate of the revenue which will be due the City after all bills and invoices have been paid. 2. On the 10th of the following month you will receive a detailed statement of the financial transactions of the previous month. If there is additional revenue which is due the City a second check will be issued and will accompany the statements. 3. We have retained, as previously agreed, $10,000.00 from the July revenue. We will replenish that amount as needed on a periodic basis. A check for $38,000.00 accompanies this letter. This is the July revenue. On August 10 the final accounting data will be presented. Please notify me if this process fails to meet your needs. Sincerely, % ^ BILL MECHAM EMPLOYMENT AGREEMENT Marina Park through it's Agent Bendetti Management Group (hereinafter referred to as "Employer" and Douglas A.E. Wylie and Valerie Wylie (hereinafter referred to as "Employee ") in consideration of the mutual promises made herein, agree as follows: 1. PROBATION PERIOD AND TERMS OF EMPLOYMENT: Employee is on a ninety (90) day probation period to commence upon the date of this Agreement. During this probation period Employer shall provide Employee assistance and on-the-job education in relation to the basic duties of the position of mobilehome park manager. At the end of said ninety (90) day trial period Employer shall provide Employee with an evaluation of performance. However, Employee recognizes and agrees that employment hereunder (including but not limited to the "probation period ") is on an "at will" basis and employment can be terminated by either party. 2. GRANT OF LICENSE: Employer hereby grants Employee a revocable, non - possessory license and right (the "License ") to use and occupy the following described premises ( "Premises "): The mobilehome located in Marina Park at 1770 West Balboa Boulevard, Space "Manager B" Newport Beach, California and all contents subject to the terms and conditions herein contained. Said occupancy and possession may be terminated by Employer at any time and any rights of occupancy or possession shall automatically terminate upon termination of the employment relationship, it being understood and agreed between the parties that lodging and the utilities (gas, water, sewer, electricity) which service that lodging are being furnished as a condition of employment. 3. TERM OF LICENSE: The License shall commence immediately upon execution of this Agreement by both Employer and Employee. The License shall terminate immediately when Employee employment by Employer ends, for any reason, or when Employer notifies Employee that the License has been revoked for any reasons, whichever shall first occur. 4. USE OF PREMISES: The Premises shall be occupied by no more than two adults and two children. Employee may not keep any dog, cat or any other pet in or about the Premises, without the prior written consent of Employer, which consent may be withheld for any reason. Employee hereby acknowledges and agrees that the License herein granted shall at all times be subject to the Park Rules and Regulations as they may now exist or as they may be amended or modified from time to time by Employer. Employer shall retain the control of the right of action to the Premises at all times during the term of the License. 5. RELATIONSHIP: Employer and Employee agree that it is their intention to create hereby the relationship of licensor - licensee, and not to create the relationship of landlord- tenant. Employee hereby acknowledges that Employee has not acquired a tenancy interest in the Premises, nor any rights under the landlord -tenant laws of the State of California. 6. NO ASSIGNMENTS: Employee understands and agrees that the License herein granted is personal to Employee only and that it cannot be assigned, transferred or conveyed by Employee. Any attempt by Employee to assign, transfer or convey the license shall be null and void and shall, at Employer's option, operate to terminate the License immediately. 7. EFFECT OF TERMINATION: Employee agrees that within five (5) days after termination of the License, for any reason, Employee and all other occupants will vacate the Premises and return the Premises keys to Employer or its Agent. 8. COMPENSATION: Employer and Employee agree that the lodging and utilities being finished by Employer to Employee constitute part of the compensation of Employee to be credited towards the wages of the Employee in accordance with the agreement between Employer and Employee. In addition, Employee is to receive a monthly salary of One Thousand Three Hundred Dollars ($1300.00) total compensation which will be divided equally between Douglas A. E. Wylie and Valerie Wylie. The regular pay periods are on the First and Fifteenth of each month. In the event Employee is terminated, Employee understands and agrees that he will not receive his final paycheck from Employer unless and until he has vacated the Premises and returned the Premises keys to Employer or its Agent, and returned all furniture, appliances and furnishings. Furnishings must be returned in the same condition as when Employee was provided the Premises. Any missing furnishing, furniture, and/or appliances shall be repaired and/or replaced by Employee. In the event that the amount of the final paycheck of the Employee is insufficient to comer said replacement and/or repair, then Employee shall immediately reimburse Employer for said amount. 9. INDEMNITY: Employee hereby agrees to defend, indemnify and hold Employer, its agents, servants and employees harmless from and against any and all claims, liabilities, obligations, judgments, penalties, costs and expenses arising out of or related to any and all loss or damages to any and all property of for injury (including death) to any person arising from or related in any way to the License and/or the use of the Premises by Employee, his guests, relatives or invitees. 10. ATTORNEYS' FEES AND COSTS: If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and any other necessary disbursement. AGREED AND SIGNED THIS !U 4 DAY OF AUGUST, 1993 EMPLOYEE �U 'S AUTHORIZED AGENT 3 CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 (714) 644 -3005 TO: FINANCE DIRECTOR 2 FROM: CITY CLERK DATE: February 1, 1994 SUBJECT: Contract No. C -2983 Description of Contract Marina Park Panagement Effective date of Contract January 9, 1994 Authorized by Minute Action, approved on January 10 1994 Contract with Bendetti Management Group Address 1176 Main Street, Suite 100 Irvine, CA 92714 Amount of Contract (See Agreement) Wanda E. Raggio City Clerk WER:pm Attachment 3300 Newport Boulevard, Newport Beach V • • ACTION: If desired, approve and authorize City Manager to execute contract with the Bendetti Group. BACKGROUND: The retirement of the long -time manager last year initiated a complete review of the management and administration of the Park. In recent years much new legislation and case law vastly complicated mobile home park management, and both the City Attorney and outside counsel specializing in such law have strongly recommended professional management. The Bendetti Group was retained on two separate three month contracts on a trial basis. The proposed contract would retain them through the fiscal year. DISCUSSION: The Bendetti Group has performed exceptionally well in the past six months by maintaining good tenant relations, training and supervising a novice manager, greatly reducing landscaping costs and greatly improving the appearance and maintenance of the Park. Their cost of $3300 per month has been very competitive, and the higher fee of $3900 per month reflects their hiring of the maintenance man ($500 per month) rather than the City and some unforeseen charges for Workers' Compensation Insurance. RECOMMENDATION: Continuation of this contract through the fiscal year will allow planning for a longer term contract to coincide with lease negotiations and the budget process. Kenneth J. Debi o KJD:mb P-0 City Council Agenda Item No. a CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER JAN I 0 °= JANUARY 10, 1994 i I `APFffWEff___ TO: MAYOR AND CITY COUNCIL FROM: DEPUTY CITY MANAGER SUBJECT: MARINA PARK MANAGEMENT CONTRACT • • ACTION: If desired, approve and authorize City Manager to execute contract with the Bendetti Group. BACKGROUND: The retirement of the long -time manager last year initiated a complete review of the management and administration of the Park. In recent years much new legislation and case law vastly complicated mobile home park management, and both the City Attorney and outside counsel specializing in such law have strongly recommended professional management. The Bendetti Group was retained on two separate three month contracts on a trial basis. The proposed contract would retain them through the fiscal year. DISCUSSION: The Bendetti Group has performed exceptionally well in the past six months by maintaining good tenant relations, training and supervising a novice manager, greatly reducing landscaping costs and greatly improving the appearance and maintenance of the Park. Their cost of $3300 per month has been very competitive, and the higher fee of $3900 per month reflects their hiring of the maintenance man ($500 per month) rather than the City and some unforeseen charges for Workers' Compensation Insurance. RECOMMENDATION: Continuation of this contract through the fiscal year will allow planning for a longer term contract to coincide with lease negotiations and the budget process. Kenneth J. Debi o KJD:mb P-0 0 0 PROPERTY MANAGEMENT AGREEMENT • I. PARTIES This Agreement is made this day of 1993, 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 January 8, 1994 and ending June 30, 1994. Either party may terminate this Agreement without cause upon thirty (30) days written notice. IV. AGENT'S DUTIES: Agent does hereby agree to use its best efforts to fully, effectively and efficiently manager, 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: 1. Operations and Management: Manage, operate and maintain the Park, including, but not by way of limitation: a) the employment, supervision and discharge, as employees or independent contractors of Agent, of all personnel, professional or otherwise, in the reasonable opinion of Agent necessary to the • property management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City's. b) the customary and ordinary maintenance and repair of the Park and its improvements, fixtures, appurtenances and grounds, • • Property Management Agreement • Page 2 c) the supervision of any and all services and utilities in the reasonable opinion of Agent 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 garde ni ng /landscapi ng, d) advising City regarding any and all insurance which in the reasonable opinion of Agent is necessary to adequately protect City, Agent, their employees and agents and the Park or as required by law, including, but not by way of limitation, where appropriate and applicable, workmen's compensation insurance, public liability insurance, fire, casualty and extended coverage insurance, burglary and theft insurance, 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 Expenses: Agent shall pay all employee costs and City shall, upon the advisement of Agent, pay all operating expenses. It is understood and agreed by the parties hereto that all costs related to the maintenance and operation of the Park are to be paid from City's funds. Under no circumstances whatsoever shall Agent be required to advance or otherwise expend Agent's own funds for the benefit of the Park. 3. Agent's Authority: City does hereby authorize and direct Agent to do everything reasonably necessary, in the name of and at the expense of City 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, recommending • independent contractors to supply services, and requesting such sums from City as Agent deems necessary to accomplish the foregoing. Agent shall obtain City's approval for an expenditure in excess of $250.00 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 Agent such repairs necessary to prevent additional damage and/or liability or a greater total expenditure or to maintain services or conditions to the tenants as called for in their tenancy. 0 0 Property Management Agreement Page 3 4. Employee Coaches: Agent shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. 5. Records: Agent to compile those records, books and accounts as required by applicable state and federal law pertaining to mobile home parks. V. OWNER'S DUTIES: Agent and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: information to Agent: City agrees to promptly furnish Agent 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 Agent's misconduct or negligence, City shall indemnity and save the Agent 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 of the performance or exercise of any of the duties, obligations, powers, or authorities herein or hereafter granted to Agent. 3. Insurance: The City is a self insured public agency. City agrees to consider all reasonable recommendations of Agent 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 Agent 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 Agent, upon demand, to the full extent for all monies advanced by Agent for City's accounts in carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Agent to make such advances. • 0 E i Property Management Agreement Page 4 El 8, 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 Agent, the owner fails to authorize Agent or others to make such repairs, alterations, or removals, Agent shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on City's part. 7. Agent's Fee: City shall pay Agent for its property management services Three thousand nine hundred dollars ($3900) per month in advance. 8. Additional Services Rendered: City hereby agrees that for any services rendered by Agent on City's behalf beyond the scope of this Agreement, Agent shall be paid at an hourly rate of ninety dollars ($90.00) per hour. Such additional services shall include, but not be limited to, formal rent control procedures, representation of City before governmental entities and services rendered for the finance and /or the sale of subject Park. Agent shall notify City of any such services prior to the rendering of same. 9. Duty to Coo ep rate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Request: City hereby represents that he /she is empowered and duly authorized by all partners of the Park to enter into this Agreement. VI. MISCELLANEOUS TERMS: 1. Governing 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. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Agent 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. • • Property Management Agreement Page 5 4. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the 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 Agent 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 from the other, all attorney's fees, costs, and expenses incurred in any such action. 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. Waive : No failure by City or Agent 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 reement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: CITY OF NEWPORT BEACH Date: By: Kevin J. Murphy, City Manager 3300 Newport Blvd. Newport Beach, CA 92663 APPROVED AS TO FORM: City Attorney AGENT: BENDETTI MANAGEMENT GROUP Date: By: Robert D. Bendetti, Principal 1176 Main Street, Suite 100 Irvine, CA 92714 • • • c - z9,?3 PROPERTY MANAGEMENT AGREEMENT 1. PARTIES This Agreement is made this 9th day of January 1994, 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 January 8, 1994 and ending June 30, 1994. Either party may terminate this Agreement without cause upon thirty (30) days written notice. IV. AGENT'S DUTIES: Agent does hereby agree to use its best efforts to fully, effectively and efficiently manager, 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: Operations and Management: Manage, operate and maintain the Park, including, but not by way of limitation: a) the employment, supervision and discharge, as employees or independent contractors of Agent, of all personnel, professional or otherwise, in the reasonable opinion of Agent necessary to the property management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City's. b) the customary and ordinary maintenance and repair of the Park and its improvements, fixtures, appurtenances and grounds, Property Management Agreement Page 2 c) the supervision of any and all services and utilities in the reasonable opinion of Agent 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, d) advising City regarding any and all insurance which in the reasonable opinion of Agent is necessary to adequately protect City, Agent, their employees and agents and the Park or as required by law, including, but not by way of limitation, where appropriate and applicable, workmen's compensation insurance, public liability insurance, fire, casualty and extended coverage insurance, burglary and theft insurance, 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 Expenses: Agent shall pay all employee costs and City shall, upon the advisement of Agent, pay all operating expenses. It is understood and agreed by the parties hereto that all costs related to the maintenance and operation of the Park are to be paid from City's funds. Under no circumstances whatsoever shall Agent be required to advance or otherwise expend Agent's own funds for the benefit of the Park. 3. Agent's Authority: City does hereby authorize and direct Agent to do everything reasonably necessary, in the name of and at the expense of City 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, recommending independent contractors to supply services, and requesting such sums from City as Agent deems necessary to accomplish the foregoing. Agent shall obtain City's approval for an expenditure in excess of $250.00 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 Agent such repairs necessary to prevent additional damage and /or liability or a greater total expenditure or to maintain services or conditions to the tenants as called for in their tenancy. Property Management Agreement Page 3 4. Employee Coaches: Agent shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. 5. Records: Agent to compile those records, books and accounts as required by applicable state and federal law pertaining to mobile home parks. V. OWNER'S DUTIES: Agent and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: Information to Agent: City agrees to promptly furnish Agent 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 Agent's misconduct or negligence, City shall indemnify and save the Agent 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 of the performance or exercise of any of the duties, obligations, powers, or authorities herein or hereafter granted to Agent. Insurance: The City is a self insured public agency. City agrees to consider all reasonable recommendations of Agent 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 Agent 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 Agent, upon demand, to the full extent for all monies advanced by Agent for City's accounts in carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Agent to make such advances. Property Management Agreement Page 4 0 6. Governmental Order to Repair. r. 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 Agent, the owner fails to authorize Agent or others to make such repairs, alterations, or removals, Agent shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on City's part. 7. Agent's Fee: City shall pay Agent for its property management services Three thousand nine hundred dollars ($3900) per month in advance. 8. Additional Services Rendered: City hereby agrees that for any services rendered by Agent on City's behalf beyond the scope of this Agreement, Agent shall be paid at an hourly rate of ninety dollars ($90.00) per hour. Such additional services shall include, but not be limited to, formal rent control procedures, representation of City before governmental entities and services rendered for the finance and /or the sale of subject Park. Agent shall notify City of any such services prior to the rendering of same. 9. Duty to Cooperate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Request: City hereby represents that he /she is empowered and duly authorized by all partners of the Park to enter into this Agreement. VI. MISCELLANEOUS TERMS: Governing 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. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Agent 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. Property Management Agreement Page 5 4. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the 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 Agent 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 from the other, all attorney's fees, costs, and expenses incurred in any such action. 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 Agent 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 preement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: CITY OF NEWPORT BEACH Date: By: 'AAVZ1o6= — urp Manager 3300 Newport . Newport Beach, CA 92663 APPRQQED AS TO FORM: Attorney AGENT: BENDETTI MANAGEMENT GROUP Date: By: — R*A D. Bendetti, Principal 1176 Main Street, Suite 100 Irvine, CA 92714