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24-98 OrdinanceRECORD OF ORDINANCES Dayton Leeal Blank Co. - Form No. 30043 Ordinance No.-__ ~'9S Passed - --- - --- -19 - - AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE LEASING AND MANAGEMENT OF THE FOUR CITY-OWNED PROPERTIES LOCATED ON JENMAR COURT, IN THE CITY OF DUBLIN, COUNTY OF FRANKLIN, STATE OF OffiO, AND DECLARING AN EMERGENCY ,the City of Dublin is the owner of four residential properties located at 3571, 3581, 3593 and 36017enmar Court; and WHEREAS, Dublin City Council wishes to lease these properties through an agreement with a professional property management firm; and WHEREAS, Dublin City Council has authorized staff to proceed with the selection of a property management firm subject to formal Council action awarding a contract; NOW, T~~~~ RE, BE IT ORDAINED by the Council, of the City of Dublin, State of Ohio, of the elected members concurring that: Section 1 _ That the City Manager is hereby authorized to enter into the Agreement attached as Exhibit "A" . Section 2. That this Ordinance be, and the same hereby is, declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or welfare and for the further purpose of quickly leasing the properties thereby ensuring additional revenue for the City. Passed this ~~~ day of ~ , 1998. ~'1 - Presiding Officer ATTEST: Clerk of Council S:\DATA\COUNCII.\LEGISLAT\ORD2498.JEN ._.: ~__..,. ,».,,~....« ~ A. ...a >. .._. ,,..,.,r. ...~. ..« '1'm""trams">. ..... ~. ~_..r,+v..y«e..rwJ..a ,....m~,...:... ~-+u~w+N4MHM'r~'r....a. w...-.s .-..F- r ~......-...{.. ,. CITY OF DUBLIN Memo Office of the City Manager 5200 Emerald Parkway Dublin, Ohio 43017-1006 To: Members of Dublin City Council From: Timothy C. Hansley, City Manager Subject: Ordinance 24-98 Date: April 16, 1998 Initiated by: Michelle L. Crandall, Management Assistant ~;~'!~C Attached please find the management agreement with Mauger Management Company for the leasing and management of the four City-owned Jenmar Court properties. This agreement has been reviewed by both the Director of Law and the Director of Finance. Also attached is an analysis of the five property management firms that responded to the City's •~- request for proposal. Staff is requesting that this ordinance be passed by emergency in order to lease the properties as quickly as possible. OWNER City of Dublin, Ohio and AGENT Mauger Management Company For Property located at __- 35~~ 3551, 3543,~3~,C'~1 ,~'"Znrner C~~.t-t Be;inning 19 Ending _ 19 MAI~IAG~M~NT AGREEMENT IN CONSIDERATION of the covenants herein contained, City of Dublin, Oh; (hereinafter called "OWNER), and MauQer Management Co (hereinafter called "AGENT"), follows: agree as 1. The OWNER hereby employs the AGENT exclusively to rent and manage the property (hereinafter called the "Prem/is~es") known as 3 ~ ! , ~ St I ~ 3 ~-9 3 ~, „,.t upon the terms and conditions hereinafter set forth, for a term of one year beginning on the day of , 19 ,and ending on the day of , 19 ,and thereafter for yeazly periods from time to time, unless on or before 0 days prior to the date last above mentioned or on or before _ 30 days prior to the expiration of any such renewal period, either party hereto shall notify the other in writing that it elects to terminate this Agreement, in which case this Agreement shall be thereby terminated on said last mentioned date. (See also Pazagraph 6.3 below.) 2. THE AGENT AGREES: 2.1 To accept the management of the Premises, to the extent, for the period, and upon the terms herein provided and agrees to furnish the services of its organization for the rental operation and management of the Premises. 2.2 To render a monthly statement of receipts, disbursements, and charges to the following person(s) at the address(es) shown: City of Dublin~Ohio 5200 Emerald Parkwayss Dublin OH 43017 and to remit each month the net proceeds (provided AGENT is not required to make any mortgage, escrow, or tax payment on the first day of the following month). AGENT will remit the net proceeds or the balance thereof after making allowance for such payments to the following persons, in the percentages specified, and at the addresses shown: Name Percentage City of Dublin Ohio 100 Address 5200 Emerald Parkway Dublin OH 43017 In case the disbursements and chazges shall be in excess of the receipts, the OWNER agrees to pay such excess promptly, but nothing herein contained shall obligate the AGENT to advance its own funds on behalf of the OWNER. 2.3 To cause all employees of the AGENT who handle or are responsible for the safe- keeping of any monies of the OWNER to be covered by a fidelity bond in an amount and with a company determined by the AGENT Sr~to Fir.., T„G,,,-an,.P _ ack Gilkerson, Agent __S 25,000 dollar bond 3. THE OWNER AGREES: To give the AGENT the following authority and powers (all or any of which may be exer- cised in the name of the OWNER) and agrees to assume all expenses in connection therewith: 3.1 To advertise the Premises or any part thereof; to display signs thereon and to rent the same; to cause references of prospective tenants to be investigated; to sign leases for terms not in excess of one years and to renew and/or cancel the existing leases and prepare and execute the new leases without additional charge to the OWNER; provided, however, that the AGENT may collect from tenants all or any of the following: a late rent administrative chazge, anon-negotiable check charge, credit report fee, a subleasing administrative charge and/or broker's commission and need not account for such charges and/or commission to the OWNER; to terminate tenancies and to sign and serve such notices as are deemed needful by the AGENT; to institute and prosecute actions to oust tenants and to recover possession of the Premises; to sue for and recover rent; and, when expedient, to settle, compromise, and release such actions or suits, or reinstate such tenancies. OWNER shall reimburse AGENT for all ex- penses of litigation including attorneys' fees, filing fees, and court costs which AGENT does not recover from tenants. AGENT may select the attorney of its choice to handle such litigation. _... W . ~ . ~ ~-~ . m. ~ _.~. ~e._ .~..~:. ~ lam. 3.2 To hire, discharge, and pay all engineers, janitors, and other employees; to make or cause to be made all ordinary repairs and replacements necessary to preserve the Premises in its present condition and for the operating efficiency thereof and all alterations required to comply with lease requirements, and to do decorating on the Premises; to negotiate contracts for nonrecurring items not exceeding S 250.00 and to enter into agreements for all necessary repairs, maintenance, minor alterations, and utility services; and to purchase supplies and pay all bills. AGENT shall secure the approval of the OWNER for any altera- tions of expenditures in excess of S 250.00 for any one item, except monthly or recurring operating charges and emergency repairs in excess of the maximum, if, in the opinion of the AGENT, such repairs are necessary to protect the property from damage or to maintain services to the tenants as called for by their tenancy. 3.3 To collect rents and/or assessments and other items due or to become due and give receipu therefor and to deposit all funds collected hereunder in the AGENT's custodial account. 3.4 To handle tenants' security deposits and to comply, on the OWNER's behalf, with applicable state or local laws concerning the AGENT's responsibility for security deposits and interest thereon, if any. All security deposits will be 'Ownerheld' 3.5 To execute and file all returns and other instruments and do and perform all acts required of the OWNER as an employer with respect to the Premises under the Federal Insur- ance Contributions Acts, the Federal Unemployment Tax Act, and Subtitle C of the Internal Revenue Code of 1954 with respect to wages paid by the AGENT on behalf of the OWNER and under any similar federal and state law now or hereafter in force (and in connection there- with the OWNER agrees upon request to promptly execute and deliver to the AGENT all necessary powers of attorney, notices of appointment, and the like). 3.6 The AGENT shall not be required to advance any monies for the care or management of said property, and the OWNER agrees to advance all monies necessary therefor. If the AGENT shall elect to advance any money in connection with the property, the OWNER agrees to reimburse the AGENT forthwith and hereby authorizes the AGENT to deduct such advances from any monies due the OWNER. The AGENT shall, upon instruction from the OWNER, impound reserves each month for the payment of real estate taxes, insurance, or any other special expenditure. In addition, the OWNER agrees to establish a permanent Operating Reserve Account with the AGENT in the amount of $ N/A *Agent will not advance monies to exceed $ 250.0 wit out consent from Owner. 4. THE OWNER FURTHER AGREES: As stated in paragraph 3.2 4.1 To indemnify, defend, and save the AGENT harmless from all suits in connection with the Premises and from liability for damage to property and injuries to or death of any employee or other person whomsoever, and to carry at his (its) own expense public liability, elevator liability (if elevators are part of the equipment of the Premises), and workmen's com- pensation insurance naming the OWNER and the AGENT and adequate to protect their in- terests and in form, substance, and amounts reasonably satisfactory to the AGENT, and to furnish to the AGENT certificates evidencing the existence of such insurance. Unless the OWNER shall provide such insurance and furnish such certificate within 10 days from the date of this Agreement, the AGENT may, but shall not be obligated to, place said in- surance and chazge the cost thereof to the account of the OWNER. All such insurance policies shall provide that the AGENT shall receive thirty (30) days' written notice prior to cancellation of the policy. 4.2 To pay all expenses incurred by the AGENT, including, but not limited to, reasonable attorneys' fees and AGENT's costs and time in connection with any claim, proceeding, or suit involving an alleged violation by the AGENT or the OWNER, or both, of any law pertaining to fair employment, fair credit reporting, environmental protection, rent control, taxes, or fair housing, including, but not limited to, any law prohibiting, or making illegal, discrimination on the basis of race, sex, creed, color, religion, national origin, or mental or physical handicap, provided, however, that the OWNER shall not be responsible to the AGENT for any such ex- penses in the event the AGENT is finally adjudicated to have personally, and not in a repre- sentative capacity, violated any such law. Nothing contained herein shall obligate the AGENT to employ counsel to represent the OWNER in any such proceeding or suit, and the OWNER may elect to employ counsel to represent the OWNER in any such proceeding or suit. The OWNER also agrees to pay reasonable expenses (or an apportioned amount of such expenses where other employers of AGENT also benefit from the expenditure) incurred by the AGENT in obtaining legal advice regazding compliance with any law affecting the premises or activities related thereto. Owner will be notified in advance prior to any legal action taken by Agent with reference to above properties. 4.3 To indemnify, defend, and save the AGENT harmless from all claims, investigations, and suits, or from actions or failures to act of the OWNER, with respect to any alleged or actual violation of state or federal labor laws, it being expressly agreed and understood that as between the OWNER and the AGENT, all persons employed in connection with the Premises aze employees of the OWNER, not the AGENT. However, it shall be the responsibility of the AGENT to comply with all applicable state or federal labor laws. The OWNER's obligation under this paragraph 4.3 shall include the payment of all settlements, judgments, damages, li- quidated damages, penalties, forfeitures, back pay awards, court costs, litigation expense, and attorneys' fees. 4.4 To give adequate advance written notice to the AGENT if the OWNER desires that the AGENT make payment, out of the proceeds from the premises, of mortgage indebtedness, general taxes, special assessments, or fire, steam boiler, or any other insurance premiums. In no event shall the AGENT be required to advance its own money in payment of any such in- debtedness, taxes, assessments, or premiums. S. THE OWNER AGREES TO PAY THE AGENT EACH MONTH: S.1 FOR MANAGEMENT: Seven Percent per month or percent ( 7 _%) of the monthly gross receipts from the operation of the Premises during the period this Agreement remains in full force and effect, whichever is the greater amount. Gross receipts aze all amounts received from the operation of the Premises including, but not limited to, rents, pazking fees, deposits, laundry income, and fees. 5.2 APARTMENT LEASING No additional charge, Agent charges application fee to prospective 'tenants' to cover cost of screening credit worthiness. 5.3 COMMERCIAL LEASING N/A 5.4 MODERNIZATION (REHABILITATION/CONSTRUCTION) N/A 5.5 FIRE RESTORATION To de determined between Owner & Agent 5.6 OTHER ITEMS OF MUTUAL AGREEMENT All actions taken by Agent will be in good faith for the best interest of Owner. IT IS MUTUALLY AGREED THAT: 6.1 The OWNER expressly withholds from the AGENT any power or authority to make any structural changes in any building or to make any other major alterations or additions in or to any such building or equipment therein, or to incur any expense chargeable to the OWNER other than expenses related to exercising the express powers above vested in the AGENT without the prior written direction of the following person: Name Address City of Dublin, Ohio _ 5200 Emerald Parkway except such emergency repairs as may be required because of danger to life or property or '-' which aze immediately necessary for the preservation and safety of the Premises or the safety of the tenants and occupants thereof or aze required to avoid the suspension of any necessary service to the Premises. 6.2 The AGENT does not assume and is given no responsibility for compliance of any building on the Premises or any equipment therein with the requirements of any statute, or- dinance, law, or regulation of any governmental body or of any public authority or official thereof having jurisdiction, except to notify the OWNER promptly or forwazd to the OWNER promptly any complaints, warnings, notices, or summonses received by it relating to such matters. The OWNER represents that to the best of his (its) knowledge the Premises and such equipment comply with all such requirements and authorizes the AGENT to disclose the ownership of the Premises to any such officials and agrees to indemnify and hold harmless the AGENT, its representatives, servants, and employees, of and from all loss, cost, expense, and liability whatsoever which may be imposed on them or any of them by reason of any present or future violation or alleged violation of such laws, ordinances, statutes, or regulations. 6.3 In the event it is alleged or charged that any building on the Premises or any equip- ment therein or any act or failure to act by the OWNER with respect to the Premises or the sale, rental, or other disposition thereof fails to comply with, or is in violation of, any of the requirements of any constitutional provision, statute, ordinance, law, or regulation of any governmental body or any order or ruling of any public authority or official thereof having or claiming to have jurisdiction thereover, and the AGENT, in its sole and absolute discretion, considers that the action or position of the OWNER or registered managing agent with respect thereto may result in damage or liability to the AGENT, the AGENT shall have the right to cancel this Agreement at any time by written notice to the OWNER of its election so to do, which cancellation shall be effective upon the service of such notice. Such notice may be served personally or by registered mail, on or to the person named to receive the AGENT's monthly statement at the address designated for such person as provided in Paragraph 2.2 above, and if served by mail shall be deemed to have been served when deposited in the mails. Such cancella- tion shall not release the indemnities of the OWNER set forth in Paragraphs 4 and 6.2 above and shall not terminate any liability or obligation of the OWNER to the AGENT for any pay- ment, reimbursement, or other sum of money then due and payable to the AGENT hereunder. 7. This Agreement may be cancelled by OWNER before the termination date specified in paragraph 1 on not less than 30 days' prior written notice to the AGENT, provided that such notice is accompanied by payment to the AGENT of a cancellation fee in an amount equal to Two - 2 % of the management fee that would accrue over the remainder of the stated term of the Agreement. For this purpose the monthly management fee for the remainder of the stated term shall be presumed to be the same as that of the last month prior to service of the notice of cancellation. 8. The OWNER shall pay or reimburse the AGENT for any sums of money due it under this Agreement for services for actions prior to termination, notwithstanding any termination of this Agreement. All provisions of this Agreement that require the OWNER to have insured or to defend, reimburse, or indemnify the AGENT (including, but not limited to, Pazagraphs 4.1, 4.2, and 4.3) shall survive any termination and, if AGENT is or becomes involved in any proceeding or litigation by reason of having been the OWNER's AGENT, such provisions shall apply as if this Agreement were still in effect. The parties understand and agree that the AGENT may withhold funds for thirty (30) days after the end of the month in which this Agreement is terminated to pay bills previously incurred but not yet invoiced and to close accounts. This Agreement shall be binding upon the successors and assigns of the AGENT and their heirs, administrators, executors, successors, and assigns of the OWNER. IN WITNESS WHEREOF, the parties hereto have affixed or caused to be affixed their respective signatures this WITNESSES: day of , 19 OWNER: AGENT: Firm By Submitted by CITY OF DUBLIN Memo ' Office of the City Manager 5200 Emerald Parkway Dublin, Ohio 43017-1006 To: Timothy C. Hansley, City Manager From: Michelle L. Crandall, Management Assistant ~'7'Y,~~~ Date: February 6, 1998 Re: Property Management - Jenmar Court Attached please find information pertaining to the five property management firms that responded to the City's Request for Proposal (RFP) for the leasing and maintenance of the four City-owned Jenmar Court properties. All proposals received were complete and acceptable except for the proposal submitted by Future Realty Company, which was incomplete and poorly prepared. Of the five proposals submitted and of the four accepted, my recommendation would be for the selection of Mauger Management Company, Inc. As is summarized in Chart B - "Fee Analysis" (attached), Mauger Management's fee totals are the lowest both for the initial leasing year and for the three years for which the contract will be negotiated. The primary reason this firm's fees were significantly lower than the other proposals is due to the fact that Mauger Management does not charge the property owner a leasing fee for new or renewal leases. Instead, the company charges an application fee to potential tenants to offset costs. Additionally, Mauger Management's billing and collection procedures and repair and renovation capabilities appear well organized and sound. The primary property manager, Nancy Mauger, is a Certified Property Manager (CPM) with 10 years of experience in the field. Mauger Management is an Accredited Management Organization (AMO) which demonstrates that the company has met certain criteria in the areas of experience, education, professional skills, financial stability and ethics. If you are in agreement with my recommendation, Iwill move forward with this project and begin negotiating athree-year leasing contract with the preferred firm. My intent is to prepare an initial contract to be reviewed by the Department of Law and by the Department of Finance. Marsha has informed me that there is specific language she would like to have included to ensure efficient billing and payment procedures. Additionally, I have had contact with Craig Stewart to discuss general contract considerations. cc: Marsha Grigsby Director of Finance I_.,. _ _ ._ ___ _~. ,.~ r.rrnr~ ~ ~ ~ R° ~ "y~ ~ O '~ ~ ~ O o G ~ i~ ~ `~ ("~ UNO ~ ~ ' p~~ p P CD ~ `~ b ~ ~ b ~ W ~ C ~ ~ ~ M `G ~ ~ O (,~ ~-. ~ 9 ~ ~ n `C ~ f D ~E p ~ ~, ~ `C to ~' `'~ ~'' ~ ~yy ~° ~~- o ~ c Z c 69 Oo ~ ~ ~ (D o o e ~ 7 ~ a o ~~ ~ ~~ ~ y ° ~ ~~ ~ o o 00 ~ O w eo ~ ~~ ~o o ~~ ~ ~ " o ~ ~ ~ ° ~ ~ 0 ~° o ~ o ~° a o 0 0 ~ coo ~ ~ ,:d ~ cCo ~ ~ ~ w ~ N ~• n ~ ,~ O ~' O (IQ O ~ ~~ ~ ~ ~ `t N ~(D ~ p .7 ~ N ~. ~. N `~ faD ~ pp~~ t7 ~ ~' N q w ~' O ~ ~ ~ G N ~p ~ ~.w C ~ ~ Ft rp o c1 py.. G P V' oaa ~' (~D w -F H ~.~ ~. 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