2003 AGN SEP 02 I14 - Laserfiche WebLink

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Item #14 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Redevelopment Agency Board Meeting of September 2, 2003 TO: Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Redevelopment Manag(r SUBJECT: Consideration and Approval of Agency Resolution No. 818 Engaging Elite Asset Management to Manage the Agency's Assets in Rancho Mediterrania DATE: August 11, 2003 7Sy:LclaelIK On July 1, 1999, the Agency Board engaged the services of Community Asset Management (CAM) to manage the Agency's assets within Rancho Mediterrania. Primarily, the management company is charged with collecting rents, managing tenants and ensuring that the Agency's vacant properties are maintained. On January 30, 2003, CAM resigned from management of the property. The Agency issued a Request for Qualifications in December 2002 and received two responses: one was from a company in Arizona who is unfamiliar with California Mobilehome law and the other is from a company who didn't have an interest in managing the park after interviewing them. DISCUSSION/ANALYSIS Since no bids were formally received, Section 3.08.140.E of the City's Purchasing Ordinance allows the Agency to award by any alternative procedure. After discussing the issue with Elite Asset Management (the Homeowners Association's management company) and CAM, it was decided to be in the best interest of the Agency and the project to enter into an Interim Property Management Agreement with Elite. Elite is familiar with the project, its complexities and the Agency's disposition objective. The Interim agreement became effective February 1, 2003. The management company receives $16/month per agency -owned lot or a minimum of $2,500/month to manage the Agency's assets. The number of Agency owned lots has fallen below 156 lots and therefore, the management company has been receiving the minimum $2,500/month for management of the Agency's assets. The rental income from the project pays the management fees, as well as the other ongoing fees associated with each space (i.e. HOA dues). FINANCIAL IMPACT The Agency shall pay the management company a fee equal to Sixteen Dollars ($16.00) per lot owned in fee title by the Agency as compensation for all management services rendered each month. The fee is paid to the management company on the last business day of each month during the Term (12 months). Notwithstanding the application of this per -lot computation, the minimum monthly fee shall be Two Thousand Five Hundred Dollars R:\ShareRDA\Meetings\2003 Meetings\Seplember 2, 2003\Elite Property Mgt Amt staff rpt.doc