sr-030910-1fCity Council Meeting: March 9, 2010
Agenda Item: ~-'F
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Property Management Services for Mountain View Mobile Home Park
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Real Estate Consulting and Services, Ind. for a total amount not
to exceed $1,425,741 over a 39 month period to provide property management
services, including contracting for and paying all operating costs, for the City-owned
Mountain View Mobile Home Park located at 1930 Stewart Street. The amount includes
a 10% contingency.
Executive Summary
Mountain View Mobile Home Park ("Park") is a City-owned property comprised of 105
rental spaces for manufactured homes and includes common- area facilities such as
office/meeting space, bathrooms, laundry facilities and a small pool. Property
management will administer occupancy, maintenance, and enforce Park rules and lease
agreements with periodic reports to City staff. Staff recommends that the City contract
with Real Estate Consulting and Services, Inc. to provide these services. The contract
amount of $1,425,741 includes management fees and estimated operating expenses
(including the direct costs of onsite management) fora 39 month period.
Background
On December 22, 2000, the City purchased the Mountain View Mobile Home Park
along with 36 mobile home units as part of a legal settlement with the prior owner to
preserve the Park for affordable housing. The Park .encompasses approximately 4.7
acres of land and is deed-restricted with affordability covenants. There are 105 rent-
controlled spaces, of which 75 are currently occupied. The City's major infrastructure
improvement project is nearly complete and includes a .partial reconfiguration,
establishment of lot lines, replacement of utilities and street lights, installation of fire
hydrants, replacement of roads, and installation of curbs.
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Discussion
Since March 16, 2005, the City has contracted with Castle Breckenridge Management
(CBM) to provide property management services at the Park. The original contract
period and subsequent extensions terminated March 31, 2009. However, because the
Park was in the midst of a very complex infrastructure improvement project at the end of
the contract term, an additional one-year contract with CBM was approved commencing
April 1, 2009 and terminating March 31, 2010.
The City wishes to expand the current property management scope of responsibilities to
increase the capacity of the service provider to address resident needs and attend to
the quality of the Park: Property management duties will include, but are not limited to,
the following: handling day-to-day operations of the Park; supervision of contracts and
employees; accounts payable including utilities, maintenance, repairs, permits, fees and
taxes; occupancy including rent collection, leasing and background checks on all
prospective tenants; administration and enforcement of the Mobile Home Residency
Law (MRL), Park Rules & Regulations and Fair Housing Compliance rules; and
compliance with affordable housing regulations.
Contractor/Consultant Selection
On October 19, 2009, a Request for Proposals (RFP) was issued to solicit proposals to
provide Property Management Services for the Park. The RFP was sent to 20 property
management firms and was posted on the City's web-site and on Planet Bids. Three
proposals were received and reviewed by a Selection Committee comprised of City staff
and advisors to the Housing Division. Two were selected for further review and
interviewed by Housing Division staff on February 3, 2010. Additional discussions and
reference checks followed. Staff recommends Real Estate Consulting and Services, Inc.
(RECS) as the most qualified firm to provide property management services at the Park.
RECS demonstrated expertise in the field, professionalism in their written and. oral
communication, excellent references, and competitive pricing.
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Financial Impacts & Budget Actions
The property management firm will be responsible for payment of all management and
operational expenses directly to vendors and will provide the City with monthly
expenditure reports. The contract cost, detailing annual management and operational
expenses, is shown below:
Initial Contract Period Extension 1 Extension 2
April 1, 2010
through
June 30,
2010 July 1, 2010
through
June 30,
2011 July 1, 2011
through
June 30,
2012* July 1, 2012
through
June 30,
2013*
OTAL
Management Fees 40,650 125,100 167,700 170,352 503,802
Operating
Expenses**
58,750
235,000
244,400
254,176
792,326
Sub-Total 99,400 360,100 .412,100 424,528 1,296,128
10% Contingency 9,940 36,010 41,210 42,453 129,613
TOTAL 109,340 396,110 453,310 466,981 1,425,741
*Includes maximum 4% annual adjustment
** Includes direct costs of on-site management, utilities, maintenance, repairs, permits, fees and
taxes)
Funding for each, contract period will be subject to the City's annual budget approval
process. Funding for the initial 3 months of the contract period, in the amount of
$109,340 (including contingency) is available in account number 01264.533220. The
property manager will deposit rental income in the City's Treasury, as has been done to
date. Rental income will continue to be deposited in account 01264.400950.
Prepared by: Melissa Lindley, Senior Development Analyst
Forwarded to Council:
Rod Gould
City Manager
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Housing and Economic Development
Reference Contract No.
9183 (CCS).