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
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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
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