Loading...
HomeMy WebLinkAboutReso 68-07 Dublin Sq Shopping Ctr Prop Mgmt RESOLUTION NO. 68 -07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********************** \ ( APPROVING A PROPERTY MANAGEMENT AGREEMENT WITH STRAFACE & RIELE COMMERCIAL REAL ESTATE FOR PROPERTY MANAGEMENT SERVICES FOR THE PROPERTY LOCATED AT 11759 DUBLIN BOULEVARD (DUBLIN SQUARE SHOPPING CENTER) WHEREAS, at the May 1, 2007 City Council Meeting, the City Council of the City of Dublin (the "City") approved a Purchase and Sale Agreement, as well as an Assignment and Assumption of Leases Agreement, with the Berkeley Land Co. to acquire the real property located at 11759 Dublin Boulevard (the "Dublin Square Shopping Center") as part of Capital Improvement Program (CIP) Project No. 95556 - Dublin Historic Park Acquisition (Heritage Center Expansion); and WHEREAS, at the same City Council Meeting, the City Council approved the Final Relocation Impact Statement to identify the needs of the 13 affected businesses located in the Dublin Square Shopping Center; and WHEREAS, Staff has determined it necessary to hire professional property management services to serve the Dublin Square Shopping Center properties on behalf of the City during the tenant relocation process; and WHEREAS, Straface & Riele Commercial Real Estate provides expertise in property management services with a particular focus in management of Tri-Valley properties; and WHEREAS, Staff recommends that the City execute a Property Management Agreement, attached hereto as Exhibit A, with Straface & Riele Commercial Real Estate (the "Agreement"); and WHEREAS, the Agreement has been reviewed and approved by the City Attorney's Office. NOW, THEREFORE, BE IT RESOLVED that the Agreement between the City of Dublin and Straface & Riele Commercial Real Estate is hereby approved by the City Council of the City of Dublin and the City Manager is hereby authorized and directed to execute the Agreement in the form attached as Exhibit A. PASSED, APPROVED AND ADOPTED BY this 15th day of May 2007 by the following vote: AYES: Councilmembers Hildenbrand, Oravetz, Sbranti and Mayor Lockhart NOES: None ABSENT: Councilmember Scholz ABSTAIN: None ATTEST: ~cZ CC-MTGS/5-15-07/Reso 68-07 Straface Agmt 966205_1; 114.4019 STRAFACE & RIELE COMMERCIAL REAL ESTATE 4125 Blackhawk Plaza Circle, Suite 260, Danville, California 94506 (925) 736-1578 PROPERTY MANAGEMENT AGREEMENT This agreement made by and between CITY OF DUBLIN ("Owner") and STRAFACE & RIELE COMMERCIAL REAL ESTATE ("Agent"), who agree as follows: 1. Appoint of Agent and Termination: Owner employs Agent exclusively to operate, and manage the property known and described as: 11759 Dublin Boulevard (Dublin Square Shopping Center), on the terms set forth below beginning Mav 16. 2007 and continuing until terminated by either party giving the other at least thirty (30) days prior written notice of the termination date. In the event of such termination, settlement of accounts between Owner and Agent will be made as of the termination date. Owner assumes all responsibility for gas, electric, water, sewer, garbage and other services for the property, loan payments, insurance, taxes, assessments, and all other expenses related to the property upon giving notice of termination to Agent. 2. Agents Covenants: a.) Agent shall use its best efforts to perform the Management Services consistent with first-class professional management practices so that the Premises are managed, operated, and maintained in a first-class manner appropriate for retail properties in the area in which the Premises are located. Without limiting the generality of the foregoing, Agent shall perform the Management Services in accordance with Applicable law and upon the terms and conditions of this Agreement so that (i) Owner's interest in the Premises and its interest as Landlord under the Leases shall be preserved and no default chargeable to Owner shall occur under the Leases or the Contracts; (ii) no policy of insurance held by Owner might be invalidated; and (iii) no loss insured under such insurance would be rendered uncollectible. Agent shall use its best efforts to secure full compliance by the tenants under the Leases with the terms and conditions of the Leases. b.) Agent shall render monthly statements of receipts, expenses, and charges and shall keep and maintain a segregated, comprehensive, and organized system of office records, books, and accounts with respect to Agents duties under this Agreement. In the event the expenses shall be in excess of the rents collected by Agent, Owner agrees to pay such excess expenses promptly upon demand of Agent. If Owner does not pay the excess expenses within 30 days after Agent's demand, Owner agrees to pay Agent a service fee of $100.00 per month until the excess expenses are paid in full. c. Accumulate as a reserve in Owner's account each month approximately one- twelfth of the real property taxes, bond payments or assessments, if any, and to pay same when due. d. Deposit all receipts collected for Owner (less any sums properly deducted or otherwise provided by this agreement) in a trust account in a national or state institution qualified to engage in the banking or trust business, separate from Agent's personal account. Agent will not be held liable in the event of bankruptcy or failure of a depository. 3. Agent Authority and Obligations: Owner gives to Agent the following authority and powers and agrees to pay any all expenses related to the following: a. To collect rent or other charges and expenses due or to become due and give receipts therefor; to terminate tenancies and to sign and serve in the name of Agent such notices as are appropriate; to institute and prosecute legal actions; to evict tenants and to recover possession of said premises; to sue for in the name of Agent and recover rents and other sums due; and when expedient, to settle, compromise, and release such actions or suits or reinstate such tenancies; provided however, that such actions must be reviewed and approved in writing by Owner in advance. Owner agrees to pay all costs and expenses, including attorney's fees, for such legal actions or proceedings. b. To make or cause to be made and supervise repairs and alterations, and to do decorating on said premises; to purchase supplies and pay all such expenses. Agent agrees to secure the prior approval of the Owner on all expenditures in excess of $5,000.00 for anyone item, except monthly or recurring operating charges and/or emergency repairs in excess of the maximum, if in the opinion of Agent such repairs are necessary to protect the property from damage or prevent damage to life or to the property of others or to avoid suspension of necessary services or to avoid penalties or fines or to maintain services to the tenants as called for in their leases. c. To hire, discharge and supervise all labor and employees required for the operation and maintenance of the premises; it being agreed that all employees shall be deemed employees of Owner and not Agent, and that Agent may perform any of its duties through Owner's attorneys, agents, or employees and shall not be responsible for their acts, defaults or negligence if reasonable care has been exercised by Agent in their appointment and retention. d. To make contracts for electricity, gas, fuel, water, telephone, window cleaning, trash or rubbish hauling and other services or such of them as Agent shall deem advisable. e. To pay mortgage indebtedness, property and employee taxes and special assessments. 4. Agents Compensation: a. Owner agrees to pay Agent as compensation for Agents services under this Agreement: $1,100.00 per month for management services. Agent shall be entitled to withdraw Management Fees from Owner's funds in the Trust Account in arrears monthly on the 5th day of each month. Owner further agrees to compensate Agent One Thousand and 00/100 dollars ($1,000.00) for the initial time and expense of tenant and vendor information as well as an inspection of the property and its components by Agent and its consultants. 5. Insurance and Indemnity: Owner further agrees: a. To carry, at Owner's sole cost and expense, public liability, property damage, and workers' compensation insurance as shall be adequate to protect the interests of Agent and Owner, the policies for which shall name Agent as well as Owner of Agent and Owner, the policies for which shall name Agent as well as Owner as the party insured. Such insurance shall have a single combined liability of not less than $1,000,000 and property damage limits of not less than $1,000,000. b. To indemnify and hold Agent completely harmless from any and all costs, expenses, attorney's fees, suits, liabilities, damages or claim for damages, including but not limited to those arising out of any injury or death to any person or persons or damage to any property of any kind whatsoever and to whomsoever belonging, including Owner, in any way relating to the management of the premises by Agent or the performance or exercise of any of the duties, obligations, powers or authorities herein or hereafter granted to Agent. Agent shall not be liable for any error of judgment or for any mistake of fact or law, or for anything, which it may do or refrain from doing, except in cases of willful misconduct or gross negligence. c. Agent agrees to carry Errors and Omissions insurance at all times while this Agreement is in effect. AGENT SHALL HAVE NO RESPONSIBILITY FOR OWNER'S SELECTION OF INSURANCE POLICIES, COVERAGES, LIMITS, OR THE EXPIRATION, EXTENSION, RENEWAL OR CANCELLATION OF SUCH POLICIES. 6. Successors and Assigns: This agreement shall be binding upon the successors and assigns of Agent, and the heirs, administrators, executors, successors and assigns of Owner. If it shall become necessary for Agent or Owner to give notice of any kind, the same shall be given, and shall be complete, by' sending such notice by certified mail, return receipt requested, to Owner at the address shown below and to Agent at 4125 Blackhawk Plaza Circle, suite 260, Danville, California 94506. All statements shall be mailed to Owner at: City of Dublin Attention: Chris Foss 100 Civic Plaza Dublin, CA 94568 In Witness Whereof, the parties hereto have executed this Agreement in duplicate at Dublin, California, the day and year first above written. CITY OF DUBLIN -~ ~ By: CLi..0.. (!'-cJl 0. /' __ . Richard C. Ambrose, "ty Manager Date: 6/r'T /01 EQ TAXPAYERID# 91- :2.815202 masters\mgmtagre.doc STRAFACE & RIELE COMMERCIAL REAL ESTATE By: Date: