HomeMy WebLinkAboutAGENDA REPORT 2018 0905 CCSA REG ITEM 10QCITY OF MOORPARK,
CALIFORNIA
City Council Meeting
of 09.05.2018
ACTION Approved staff
recommendation. Adopted
Reso No. 2018-3743
BY M. Benson
Q. Consider Amendment to Agreement with Linda L. Toth dba Home Sweet
Home Property Management for Property Management Services at City-
owned properties and Resolution Amending the Fiscal Year 2018/19
Budget by Appropriating $7,000 from the Citywide Traffic Mitigation Fund
for Property Management Services. Staff Recommendation: 1) Approve
Amendment No. 1 with Linda L. Toth dba Home Sweet Home Property
Management; and authorize the City Manager to sign the Amendment,
subject to final language approval of the City Manager; and 2) Adopt
Resolution No. 2018-______ amending the Fiscal Year 2018/19 Budget to
fund increased property management fees.
Item: 10.Q.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Jessica Sandifer, Community Services Manager
DATE: 09/05/2018 Regular Meeting
SUBJECT: Consider Amendment to Agreement with Linda L. Toth dba Home
Sweet Home Property Management for Property Management
Services at City-owned properties and Resolution Amending the
Fiscal Year 2018/19 Budget by Appropriating $7,000 from the
Citywide Traffic Mitigation Fund for Property Management Services
BACKGROUND
The City owns a number of properties that were acquired for a variety of reasons, such
as future street widening projects. When the properties are in good condition, the City
typically elects to rent the property until such time that the City needs to use the
property for its intended purpose. The rental income is used to defray the overall cost of
the land acquisition. The properties are rented to commercial or residential users based
on the properties current use at the time of purchase. Historically, the City had
managed all rental properties with in-house staff, however due to expanding workloads,
Linda L. Toth dba Home Sweet Home Property Management (Home Sweet Home) was
hired in July 2015 to manage the residential rental properties. The contract was
renewed in 2017. Currently the City has four residential properties that have been
managed by the property manager.
DISCUSSION
The City owns the property that is currently occupied by El Pollo Corona Mexican
restaurant (50 Moorpark Avenue). Since Home Sweet Home currently manages the
City’s residential properties, staff is recommending that they manage this commercial
property as well. Home Sweet Home has agreed to take on the management
responsibilities for the same 12% of rent fee that is charged for the residential rentals.
The hiring of Home Sweet Home will get El Pollo Corona on a new rental agreement
with the City and will provide for bi-annual property inspections, and general interface
and response with the tenant. Home Sweet Home will coordinate any repairs on the
structure of the building or the landscaping. However, the tenant will continue to be
responsible for any of the restaurant equipment.
In addition to adding the Commercial Property, the amendment will increase the not-to-
exceed amount on the contract to allow for the increased fees for El Pollo Corona, and
Item: 10.Q.
430
Honorable City Council
09/05/2018 Regular Meeting
Page 2
to account for future increases in rental fees for residential properties, such as rent
increases due to a new tenant, a pet is added, or to account for general rent increases
imposed by the City. Staff is also proposing to add two one-year extensions to the term
of the Agreement to allow for continuity of services.
FISCAL IMPACT
The current monthly cost for the property manager to manage four properties is
$966/month. The addition of El Pollo Corona, and the increased rent at McFadden
Avenue bring that cost to $1,512 per month. The contract amendment is increasing the
not-to-exceed amount from $25,000 for the two year term to $40,000 for the two year
term, and authorizing a $20,000 annual amount during any approved extension periods.
In addition to the on-going management fees, the not-to-exceed amount takes in to
account potential costs paid to the property manager when re-renting the properties
should they become vacant during the term. The current lease turn over fee is $595.
The funding for the property manager is coming directly from the rental payment
amounts. The total gross rent from the four properties plus the commercial property is
estimated to be $151,200 annually, less the property manager’s fee of approximately
$18,144, for the year, leaving net rental revenue to the City of $133,056. The net rental
revenue is split with $129,900 deposited in the City-wide Traffic Mitigation Fund (2002)
and the remainder of $21,300 deposited in the Housing Successor Agency Fund (2123).
There are sufficient funds in the Housing Successor Agency Fund (2123) to cover these
increased costs. However, Funds are not included in the FY 2018/19 budget for these
increased services in the City-wide Traffic Mitigation Fund (2002). Staff is requesting a
budget amendment from the City-wide Traffic Mitigation Fund (2002) in the amount of
$7,000 to fund the increased property management fees.
STAFF RECOMMENDATION (ROLL CALL VOTE)
1. Approve Amendment No. 1 with Linda L. Toth dba Home Sweet Home Property
Management; and authorize the City Manager to sign the Amendment, subject to final
language approval of the City Manager; and
2. Adopt Resolution No. 2018-______ amending the Fiscal Year 2018/19 Budget to
fund increased property management fees.
Attachment
1. Agreement
2. Resolution 2018-_____
431
ATTACHMENT 1
AMENDMENT NO. 1
TO AGREEMENT BETWEEN THE CITY OF MOORPARK AND
LINDA L. TOTH DBA HOME SWEET HOME PROPERTY MANAGEMENT
FOR PROPERTY MANAGEMENT SERVICES
FOR CITY-OWNED PROPERTIES LOCATED AT
250 LOS ANGELES AVENUE, 1449 WALNUT CANYON ROAD,
1493 WALNUT CANYON ROAD, 488 MCFADDEN AVENUE,
AND 50 MOORPARK AVENUE
This Amendment No. 1 to the Agreement between the City of Moorpark, a
municipal corporation (“City”), and Linda L. Toth, an individual dba Home Sweet Home
Property Management (“Property Manager”), for residential property management
services (“Agreement”), is made and entered into on this ___ day of
____________________, 2018.
RECITALS
WHEREAS, on July 11, 2018 the City and Contractor entered into an Agreement
to have the Property Manager provide property management services for City-owned
properties located at 250 Los Angeles Avenue, 1449 Walnut Canyon Road, 1493
Walnut Canyon Road, and 488 McFadden Avenue; and
WHEREAS, the City and Contractor desire to amend the Agreement title to
remove the references to individual properties as they are referenced in Section 2.
Scope of Services; and
WHEREAS, the City and Contractor now desire to amend the Agreement to add
an additional property at 50 Moorpark Avenue; and
WHEREAS, the City and Contractor now desire to amend the Agreement to add
two optional one-year extensions; and
WHEREAS, the City and Contractor now desire to amend the Agreement to
increase the compensation for services to be performed by Contractor from twenty-five
thousand dollars ($25,000) by a value of fifteen thousand dollars ($15,000), for a total
contract value of forty thousand dollars ($40,000) for the initial term ending June 30,
2019, and twenty thousand dollars ($20,000) annually during any subsequent extended
terms, and document said agreement to amend by jointly approving Amendment No. 1
to the Agreement.
NOW, THEREFORE, it is mutually agreed by and between the parties to the
Agreement as follows:
I. Agreement Title is amended to read as follows:
432
“AGREEMENT BETWEEN THE CITY OF MOORPARK AND
LINDA L. TOTH DBA HOME SWEET HOME PROPERTY
MANAGEMENT FOR PROPERTY MANAGEMENT SERVICES”
II. Section 1, TERM, is amended by adding paragraph two as follows:
“Upon the mutual consent of both parties, the term of this
Agreement may be extended by a written amendment executed by both
parties for two (2) additional one (1) year periods.”
III. Section 2, SCOPE OF SERVICES, is amended by replacing paragraphs one and
two in their entirety as follows:
“City does hereby retain Property Manager, as an independent
contractor, in a contractual capacity to provide property management
services, ensuring that properties identified as 250 Los Angeles Avenue,
1449 Walnut Canyon Road, 1493 Walnut Canyon Road, 488 McFadden
Avenue, and 50 Moorpark Avenue (“Properties”) are managed, leased,
operated, maintained, and serviced as set forth in Exhibit C – Report and
Budget Obligations and Exhibit D – Scope of Services. Property Manager
will prepare lease agreements and required addendums, using the
California Association of Realtors (C.A.R.) residential lease agreement
and City provided addendums. City to approve lease documents,
including monthly rental amounts and term, prior to signing of lease by
prospective tenant(s). During the Agreement term, additional sites may be
added to the Agreement with a written amendment executed by both
parties. In the event there is a conflict between the provisions of Exhibits
C and D and this Agreement, the language contained in this Agreement
shall take precedence. Property Manager shall perform the tasks
described and set forth in Exhibits C and D.
Compensation for the services to be performed by Property
Manager shall be in accordance with Section 5. Total compensation for all
services shall not exceed the rates or total contract value of forty thousand
dollars ($40,000) during the initial term ending June 30, 2019. During any
subsequent extended terms, compensation shall not exceed the rates or
total contract value of twenty thousand dollars ($20,000) annually, without
a written amendment to the Agreement executed by both parties. Payment
by City to Property Manager shall be in accordance with the provisions of
this Agreement.”
IV. Section 5, PAYMENT, is amended by replacing paragraph two in its entirety as
follows:
Amendment No. 1 to Agreement between City of Moorpark and Page 2
Linda L. Toth DBA Home Sweet Home Property Management
433
“For rented properties the City agrees to pay Property Manager in
accordance with the payment rates and terms forth in Exhibit D - Scope of
Services. This amount shall not exceed forty thousand dollars ($40,000)
during the initial term ending June 30, 2019. During any subsequent
extended terms, compensation shall not exceed twenty thousand dollars
($20,000) annually, for the total term of the Agreement unless additional
payment is approved as provided in this Agreement.”
V. Remaining Provisions:
Except as revised by this Amendment No. 1, all of the provisions of the
Agreement shall remain in full force and effect.
In W itness W hereof, the parties hereto have caused this Amendment to be
executed the day and year first above written.
CITY OF MOORPARK LINDA L. TOTH DBA HOME SWEET
HOME PROPERTY MANAGEMENT
_______________________________ _______________________________
Troy Brown
City Manager
Linda L. Toth
Attest:
_______________________________
Maureen Benson, City Clerk
Amendment No. 1 to Agreement between City of Moorpark and Page 3
Linda L. Toth DBA Home Sweet Home Property Management
434
ATTACHMENT 2
RESOLUTION NO. 2018-____
A RESOLUTION OF CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR
2018/2019 BUDGET BY APPROPRIATING $7,000.00 FROM
THE CITY WIDE TRAFFIC MITIGATION FUND (2002) FOR
PROPERTY MANAGEMENT SERVICES
WHEREAS, on June 21, 2018, the City of Moorpark adopted the Operating and
Capital Improvement Projects budget for Fiscal Year (FY) 2018/19; and
WHEREAS, a staff report has been presented to the City Council recommending
approval of Amendment No. 1 to agreement with Linda L. Toth, dba Home Sweet Home
Property Management, for property management services at 1449 Walnut Canyon
Road, 1493 Walnut Canyon Road, 250 Los Angeles Avenue, 448 McFadden Avenue,
which Amendment adds 50 Moorpark Avenue to the services and increased the total
compensation for the contract term to $40,000.00 for the initial two-year term ending
June 30, 2019 and $20,000 annually during each extension term; and
WHEREAS, a budget amendment of $7,000.00 from the City-Wide Traffic
Mitigation Fund (2002) is requested to fund the increased property management
services as a result of the addition of 50 Moorpark Avenue; and
WHEREAS, Exhibit “A”, attached hereto and made a part hereof, describes said
budget amendment and the resultant impact to the budget line items.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. A budget amendment in the amount of $7,000 from the City-Wide
Traffic Mitigation Fund (2002), as more particularly described in Exhibit “A”, attached
hereto, is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 5th day of September, 2018.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Exhibit A – Budget Amendment
435
Resolution No. 2018 - _____
Page 2
FUND BALANCE ALLOCATION:
Fund-Account Number Amount
2002-000-00000-33990 7,000.00$
Total 7,000.00$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
2002-172-00000-51000 10,000.00$ 7,000.00$ 17,000.00$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
Total 10,000.00$ 7,000.00$ 17,000.00$
Fund Title
CITYWIDE TRAFFIC MITIGATION FUND
EXHIBIT A
BUDGET AMENDMENT FOR
CITY-WIDE TRAFFIC MITIGATION FUND (2002)
FOR INCREASED PROPERTY MANAGEMENT FEES
FY 2018/19
436