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HomeMy WebLinkAboutRDA 2 AMD 1 CONS SVCS 11-01-04 AGENDA REPORT Agenda Item RDA2 Reviewed: City Manager Finance Director N/A MEETING DATE: NOVEMBER 1, 2004 TO: FROM: WilLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF SUBJECT: APPROVAL OF AMENDMENT NO.1 TO CONSULTING SERVICES AGREEMENT FOR RELOCATION COORDINATION AND PROPERTY MANAGEMENT SERVICES. SUMMARY Agency approval is requested for Amendment No.1 to the Consulting Services Agreement with Overland Pacific & Cutler, Inc. for relocation coordination and property management services for properties recently acquired by the City within the Town Center Redevelopment Project. RECOMMENDATION Staff recommends the Redevelopment Agency take the following actions: 1. Authorize the City Manager, or his designated representative to execute Amendment No.1 to the Agreement with Overland Pacific & Cutler, Inc. for relocation coordination and property management and services, subject to approval of the Agreement by the City Attorney. 2. Authorize staff to subtract property management from future collected rents. FISCAL IMPACT There are no additional fiscal impacts for the proposed amendment to the Consultant Services Agreement anticipated at this time. It is expected that existing tenant occupants would continue to occupy the units, and as a result continue to pay rent until approximately 90 days prior to any notice issued to tenants to relocate. The continuing tenant rental payments are expected to cover the ongoing property management expenses. William A. Huston Tustin Library Expansion Project - Relocation Coordination November 1, 2004 Page 2 BACKGROUND/DISCUSSION In January, 2004, the Agency approved the Consulting Services Agreement with Overland Pacific & Cutler Inc., for relocation coordination and property management services in relation to the acquisition of the Emery and De Nicola properties for the Tustin Library Project. The City obtained possession of the Emery and De Nicola properties in December, 2003. In May, 2004 the Agency adopted a Relocation Plan Amendment to include additional properties located at 325-329, 335-339 Preble Drive, 300-304 East Third Street, and 305 East Main Street. The property at 335-339 Preble Drive has already been acquired, the property at 300-304 East Third Street is in escrow, and purchase offers have been made on the remaining properties. While individual tenants at each of the properties may move, it is the City's desire to continue the occupancy of tenants on these properties until the City is further along in the construction and funding process for the Tustir:1 Library Project. However, as required by law, tenants would be provided with at least 90 days notice prior to any written request the City issues for them to move. There are two elements to the proposed amendment: one for expanded property management services and the other for continuing miscellaneous coordination services. At this time the coordination services are limited to responding to tenant questions and disbursement of quarterly payments to tenants who were displaced from the Emery properties. The proposed amendment does not provide for any additional actual relocation payments. Prior to any additional tenant displacements, another amendment will be brought forward requesting approval for an appropriation of funds in connection with relocation services and payments to the remaining occupants at the properties who have fulfilled their tenant obligations. FINDING OF BENEFIT The Properties are located in the Town Center Project Area. In March, 2000, the Tustin Community Redevelopment Agency adopted a Second Five-Year Implementation Plan for the Town Center and the South/Central Redevelopment Projects for fiscal years 2000-2001 to 2004-2005. Anticipated programs and expenditures for the five-year period included property acquisitions, design studies and State funding assistance applications to support and facilitate the redevelopment and expansion of the Tustin Library, as well as for the improvement of affordable housing. The property William A. Huston Tustin Library Expansion Project - Relocation Coordination November 1, 2004 Page 3 management activities are consistent with the Implementation Plan for the Town Center Redevelopment Project Area. Staff will be available at the Agency meeting to answer any questions the Agency may have. Attachment AMENDMENT NO.1 TO CONSULTANT SERVICES AGREEMENT THIS AMENDMENT NO.1 TO CONSULTANT SERVICES AGREEMENT is made and entered into by and between the TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic, (herein "Agency"), and OVERLAND PACIFIC & CUTLER, INC. (herein "Consultant"), pursuant to Section 2.1 and Section 3.3 "Changes", of the Consultant Services Agreement. WHEREAS, on January 27, 2004, the Consultant Services Agreement (the "Agreement") was entered into between the two parties identified above to provide consulting services to the Agency for relocation coordination and property management of properties acquired in connection with the Library Expansion Project in the City of Tustin; and WHEREAS, Exhibit C of the Agreement contemplated the potential need for services related to the provision of on-going relocation payment coordination and additional property management services to the Agency; and WHEREAS, Overland Pacific & Cutler Inc., submitted a request for modification of the properties managed to add the properties located at 325, 327, 329, 335, 337, 339 South Preble Drive, 300, 302,304 E. Third Street, and 305 E. Main Street, as they are acquired by the City, in accordance with the City of Tustin compensation for the provision of these consulting services attached hereto as Exhibit A; and THEREFORE, it is agreed that the Consultant Services Agreement be amended as follows to reflect the modifications requested by Overland Pacific & Cutler, Inc. and authorized by the Tustin City Council: 1.0 MODIFICATION OF SERVICES OF CONSULTANT 1.1 Pertaining to Section 1.0: SERVICES OF CONSULTANT 1.1 Scope of Services. For property management services the pursuant to this Agreement the work shall include the additional acquired properties as described in Exhibit "A", attached hereto and incorporated herein by reference. 2.0 MODIFICATION OF COMPENSATION 1.1 Pertaining to Section 2.0: COMPENSATION 2.1.2 Compensation of Consultant. For the property management services rendered pursuant to this Agreement, the Consultant shall be compensated and reimbursed only such amounts as are prescribed in Exhibit "A" attached hereto and incorporated herein by reference. 3.0 MODIFICATION OF PERFORMANCE SCHEDULE 3.1 Pertaining to Section 3.0: PERFORMANCE SCHEDULE 3.3 Term. Unless terminated earlier in accordance with Section 7.6 of the original Agreement, this Agreement shall continue in full force and effect until completion of services as determined by the City of Tustin. 4.0 GENERAL/SPECIAL REQUIREMENTS 4.1 All other provisions contained in the original Agreement shall continue to apply. IN WITNESS WHEREOF the parties have executed this Amendment as of the dates stated below. AGENCY: Tustin Community Redevelopment Agency DATED By: William A. Huston Executive Director CONSULTANT: Overland Pacific & Cutler Inc DATED By: Mark La Bonte Vice President APPROVED AS TO FORM: Lois Jeffrey City Attorney jad\OPCPropMgmtAmendmentl EXHIBIT A I'~/"" 17: 25 October 20, 2004 l"gun, H;II>. CA 92653 949.9515263 ph 949,951.6651 I" WWW,OPC,.,v;ces,com Ms. Clu'istinc ShingeJton Assistant City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Proposed Amendment For Property Management Services Librmy Project Dear Ms. Shingleton: Overland, Pacific & Cutlcr(OPC) is pleased to submit this proposal to provide property management services for the additional commercial and rcsidentj¡tJ tenants occupying the properties that will be needed for the proposed Library project. These properties are located at 300,302,& 304 E 3"d Street; 325, 327, 329, 335, 337 & 339 Preble Drive; and. 305 E. Main Street These properties are in addition to the fonDer DiNicola and Emery propertics we are cuITently managing. Services to be provided will be to provide property managemcnt services on an interim basis as opposed to an asset based management approach, i.e. collect rents and maintain units/property in clean and safe condition until tenant vac,ltes, thcrcupon AeCLLre unit for no further occupancy. We propose that our fec and scope of services for the additional properties will be the same as our previous proposal and our services and contract requirements will be integrated with our existing propel1y management services. To recap, Qur fee is as follows: One Time Set-up fee: Fixed fee of $125.00 per occupied unit Monthly Managemellt Fee: Fixed fee of $85.00 per occupied unit or $300 per month, whichever is greater Subcontracted services: Cost ofthe Coutractor's invoice and/or wages plus fineen (IS) perceut If extraocdinary events OCCur related to the property or a particular tenant which require staff time beyond reasonable standards that are not anticipated in the attached scope of services, additional fees may be incun"ed based on the hourly rate schedule provided below. Additionally, specifically called 16/26/2664 17: 25 9499515551 OPC PAGE 63 meetings with City staff or appearances before City or Agency Council will be billed hourly. Lastly, any consulting services necessary to support evictions, litigation, such as depositions, pre-trial research and, court testimony, is not part of the stated fee and shall be biJIed hourly at 150% of the below rates- opc's CUITent hourly rate schedule through December 31,2004 is as follows: Corporate Officer/Regional Manager Property Manager Real Estate Technician/Project Support Secretarial/Clerical $125.00 per hour $90.00 per hour $60.00 per hour $40.00 per hour We appreciate the opportunity to submit this proposal to provide the requested services. We look forward to assisting the City in the management of the identified properties. If you have any questions or require additional infonnation, please do not hesitate to contact me. Respectfully submitted, OVERLAND, PACIFIC & CUTLER, INC. ! ~0<2- Lo-13ocvk- IJL Mark La Bonte, SRJW A Vice President Attachment 10/20/2004 17:25 9499516651 OPC PAGE 04 ATTACHMENT SCOPE OF SERVICE Overland Pacific & CUtler, Inc. will provide the following services: A. Prepare and deliver rental agreements tailored to project objectives. B. Collect monthly rent payments. C. Prepare and deliver required notices. D. Collect keys and verifY abandonments. E. Provide utility disconnection and meter removal. F. Administer emergency and unsafe condition repairs. G. Contract building and ground maintenance as needed. H. Contract board-up and other security services as units become vacant. I. Pay vendor fees and utility bills Additional services which can be provided and fee proposed on a case-by-case basis is as follows: A. B. Coordinate and provide asbestos and demolition cost estimates Coordination of asbestos abatement and demolition contractors to raze property.