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Home My WebLink About2011 CON Community Development Commission - Property ManagementPROPERTY MANAGEMENT AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND THE CITY OF NATIONAL CITY FOR PROPERTY MANAGEMENT SERVICES THIS Agreement is made and entered into by and between the Community Development Commission of the City of National City [CDC], and the City of National City[City] for the City to provide Property Management Services for CDC owned properties. ARTICLE I PROPERTY MANAGEMENT SERVICES 1.1 Scope of Services. The City shall perform the Property Management Services as set forth in the written Scope of Services [Exhibit A] at the direction of the CDC for the properties listed in the List of CDC Properties [Exhibit B]. ARTICLE II DURATION OF AGREEMENT 2.1 Term of Agreement. This Agreement shall be effective on the date it is executed by the last party to sign the Agreement, and shall have a term of eight (8) years ("Term"), with continuing options to extend the Term in five (5) year increments, as desired by either party, until May 16, 2036. ARTICLE III COMPENSATION -Page 1 of 6 — Property Management Agreement 3.1 Amount of Compensation. The CDC shall pay the City for performance of all Property Management Services rendered in accordance with this Agreement, including reasonably related expenses, at the annual rate of $556,468 per fiscal year [Annual Fee], which may be adjusted, from time to time, by mutual agreement of the parties as expenses increase or decrease. 3.2 Manner of Payment. The CDC shall pay City the Annual Fee within thirty (30) calendar days after the end of the fiscal year for which Property Management Services were performed. 3.3 Additional Services. The CDC may require that the City perform additional Property Management Services beyond those described in the Scope of Services [Additional Services]. Prior to the City's performance of Additional Services, the CDC and the City must agree in writing upon a fee for the Additional Services, including reasonably related expenses. The CDC will pay the City for the performance of Additional Services in accordance with Section 3.2. ARTICLE IV CITY'S OBLIGATIONS 4.1 Property Management Standards. The City agrees that the Property Management Services rendered under this Agreement shall be performed in accordance with the standards customarily adhered to by an experienced and competent property management firm using the degree of care and skill ordinarily exercised by reputable professionals practicing in the same field of service in the State of California. 4.2 Maintenance of Records. The City shall maintain books, records, logs, documents and other evidence sufficient to record all actions taken with respect to the rendering of the Property Management Services. The City further agrees to allow the CDC to inspect, copy, and audit such books, records, documents and other evidence at all reasonable times. ARTICLE V INDEMNIFICATION 5.1 Indemnification. In contemplation of the provisions of California Government Code section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by -Page 2 of 6 — Property Management Agreement Government Code section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code section 895.2. To achieve the above -stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses that may be incurred by such other party solely by reason of Government Code section 895.2. ARTICLE VI MISCELLANEOUS 6.1 Jurisdiction and Venue. The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. 6.2 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits, the main body of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement. 6.3 Notices. In all cases where written notice is required under this Agreement, service shall be deemed sufficient if the notice is deposited in the United States mail, postage paid. Proper notice shall be effective on the date it is mailed, unless provided otherwise in this Agreement. For the purpose of this Agreement, unless otherwise agreed in writing, notice to the City shall be addressed to: 1243 National City Boulevard, National City, CA, 91950, Attn: City Manager and notice to the CDC shall be addressed to: 1243 National City Boulevard, National City, CA 91950, Attn: Executive Director. 6.4 Exhibits Incorporated. All Exhibits referenced in this Agreement are incorporated into the Agreement by this reference. -Page 3 of 6 — Property Management Agreement 6.5 Binding on Successors. This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. Attest: By: Mike Dalla, City CI Attest: By: CITY OF NATIONAL CITY Ron Morrison, Mayor COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By: By: Brad Raulston, Secretary Ron Morrison, Chairman APPROVED AS TO FORM: By: n J Claudia GMcitua Silva City Attorney APPROVED AS TO FORM: Kane Ballmer & Berkman -Page 4 of 6 — Property Management Agreement By: Commission Specia[ounsel -Page 5 of 6 — Property Management Agreement EXHIBIT A SCOPE OF SERVICES Essential Duties 1.Implements property management and marketing plans to include marketing and maintenance of CDC owned property. 2. Negotiates leases for CDC owned property; monitors and manages lease agreements, maintenance, and other contracts for CDC property; oversees the ongoing maintenance, security and repair activities for leased property. 3. Prepares, coordinates, and monitors the program budget for property management functions. 4. Represents the CDC in relocation processes. 5. Prepares written and oral reports on property management activities; provides report information to the CDC Board or citizen advisory committees, as required; responds to public inquiries regarding CDC owned property and property management activities. -Page 6 of 6 — Property Management Agreement EXHIBIT B LIST OF CDC PROPERTIES 64Q_E !Plat Sheryl Ln Habitat For Humanity 231. Mckmiey Ave McKinley Parcels 559 022 (i5 23 Mcki le Ave =f . F u�..-.Parcels 559 022 07 nleyAye iirii( areels 559022Q8 559-°040 43 f11- 2300__CleveIan i Ave Marina Gateway, 830 W 23rd St !vfarina Gateway of PityRG -Page 7 of 6 — Property Management Agreement RESOLUTION 2011 — 34 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A PROPERTY MANAGEMENT AGREEMENT BY AND BETWEEN COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND THE CITY OF NATIONAL CITY WHEREAS, the Community Development Commission of the City of National City ("CDC") has acquired a variety of real estate parcels and structures (the "Properties"), as allowed under the California Redevelopment Law Section 33391 for the purposes of developing and operating affordable housing, to hold for redevelopment for economic development purposes, and as public properties held in perpetuity as historic and cultural resources; and WHEREAS, the CDC desires for the City to maintain said Properties as identified in Exhibit "A", attached hereto; and WHEREAS, the CDC shall allocates current and future property tax increment and low -mod housing set -aside funds to manage the properties for a period of eight (8) years, with continuing options to extend the term in five (5) year increments, as desired by either party, until May 16, 2036; and WHEREAS, the City desires to maintain said Properties for the purposes as defined in the Redevelopment Plan for the National City Redevelopment Project; and WHEREAS, the CDC will pay the City for property management services and related expenses at an annual rate of $556,468, which may be adjusted between the parties as expenses increase or decrease. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Property Management Agreement by and between the Community Development Commission of the City of National City and the City of National City. PASSED and ADOPTED this 15th day of February, 2011. n Morrison, Mayor ATTEST: "L,,Z,v(4)) h el R. Dalla Mich , Gfty Clerk ROVED A .TO FORM: audia G. Silv City Attorney 921 National City 72 Blvd 929 National City 73 Blvd 74 921 A Avenue 75 130 E. 8th St 76 1028 A Ave 77 500 E. Plaza Blvd 78 1640 E. Plaza Blvd 79 Sheryl Lane 80 1231 McKinley Ave 81 1237 McKinley Ave 82 1239 McKinley Ave 83 900 W. 23rd St 85 405 W. 18th St 86 Cleveland Ave 87 2300 Cleveland Ave 88 830 W 23rd St 89 835 E 24th St 90 801 Bay Marina Dr 91 No Site Address 92 F Ave 93 E Ave 94 1845E Ave 95 1808 F Ave 97 98 99 100 101 102 103 No Site Address No Site Address No Site Address 1221 D Ave No Site Address No Site Address National City Blvd EXHIBIT A LIST OF CDC PROPERTIES Former Ed. Center Steamed Bean Kimball House H&M Goodies Avenue A Housing Lamb's Theatre Days inn Habitat For Humanity McKinley Parcels McKinley Parcels McKinley Parcels Santa Fe Depot Westside Housing Site . Marina Gateway Marina Gateway Marina Gateway Marina Gateway Marina Gateway Stein Farm Stein Farm Stein Farm Stein Farm Kimball/Morgan Towers Kimball/Morgan Towers Kimball/Morgan Towers Kimball/Morgan Towers RCP RESOLUTION 2011 — 34 556 471 03 CDC of National City 556 471 04 CDC of National City 556 472 16 CDC of National City 556 472 26 CDC of National City 556 553 08 CDC of National City 556 560 39 CDC of National City 557 410 20 CDC of National City 557 430 37 CDC of National City 559 022 05 CDC of National City 559 022 07 CDC of National City 559 022 08 CDC of National City 559 040 43 01 CDC of National City 559 085 08 CDC of National City 559 117 04 CDC of National City 559 117 05 CDC of National City 559 117 06 CDC of National City 559 117 07 CDC of National City 559 117 12 CDC of National City 560 050 13 CDC of National City 560 232 02 CDC of National City 560 232 04 CDC of National City 560 232 05 CDC of National City 560 232 06 CDC of National City 560 410 02 CDC of National City 560 410 04 CDC of National City 560 410 05 CDC of National City 560 410 06 CDC of National City 560 410 08 CDC of National City 562 251 39 CDC of National City 562 321 08 CDC of National City Passed and adopted by the Council of the City of National City, California, on February 15, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California AR-241A) City Jerk of the City oational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-34 of the City of National City, California, passed and adopted by the Council of said City on February 15, 2011. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA CITY COUNCIL AGENDA STATEMENT "EETING DATE: February 15, 2011 AGENDA ITEM NO. 1.1 ITEM TITLE: IA resolution of the City Council of the City of National City authorizing the Mayor to execute a Property Management Agreement by and between the Community Development Commission and City of National City. (Tax Increment Fund, Low -Mod Set Aside Fund). PREPARED BY: PHONE: 425$ EXPLANATION: Since its formation in 1969, the CDC has acquired several properties (land and structures) for three primary purposes: development and operation of affordable housing (for example Morgan and Kimball Towers), redevelopment for economic development purposes (for example Marina Gateway sites), and to be protected as historical and cultural assets (for example, the Stein Farm). In order to provide on- going maintenance, protection and security for these sites, staff is recommending the attached Property Management Agreement between the CDC and City be approved. The Agreement establishes funding for the required property management services for eight years, to be extended at the desire of either entity until 2036. The payment to the City is established at an amount considered to be adequate currently and could be adjusted by the parties in the future, should costs either increase or decrease. The initial amount is based on costs incurred by the CDC for its properties over the past three years, excluding capital improvement costs and/or administrative costs for staff time. A list of the properties to be managed is attached, as Exhibit B, to the Agreement. Patricia Beard! DEPARTMENT: Redevelopment Division APPROVED BY. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. This Agreement would provide $556,468 annually in tax increment funds and low - moderate housing set aside funds to the City to maintain CDC owned properties. These costs are funded through operating accounts of the City. ENVIRONMENTAL REVIEW: Not applicable, ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Proposed Agreement. hesowz\a Np C\k•3‘A