Water Draft_Updated SOW.pdf

DRAFT

SCOPE OF WORK

for Third-Party Property Management of City Plaza

CITY PLAZA

About the Project. The City of Atlanta (the "City') owns a mixed-use development known as City Plaza located across 133 Trinity Avenue, SW, Atlanta, GA 30303 across the street from City Hall. Overall City Plaza contains 164 apartments of which, 69 are one-bedroom apartments and 95 are two-bedroom apartments. The apartments feature stainless steel appliances, ceramic tile backsplash, faux-granite countertops and faux-wood flooring. The one-bedroom apartments generally contain approximately 700 square feet, while the two-bedroom generally contain approximately 967 square feet. The overall net rentable area for the apartments is 143,000 square feet. There are 92 apartments in Building 1 (Central & Mitchell Street) and it is 55.2% occupied. There are 72 apartments in Building 2 (Trinity Avenue) and it is 25% occupied. The apartments have been 75% occupied for the last three months. The development has 37 units for affordable housing.

The development also has a ground-level retail base containing approximately 28,192 square feet. City Users occupy 25,629 square feet and American Deli occupies 2,563 square feet.

There is a 274-space parking garage and a 52-space surface parking lot that are professionally.

management by a third-party. Parking is not included in the leases, but the first car of any tenant is given a reduced rate. Lanier Parking manages the parking and collection of payments. Lanier provides reports to DEAM monthly. The rates are set by doing parking survey and marketing reports.

An aerial photograph of the Property is attached as EXHIBIT B to this Scope of Work. The Property’s Estimated Income and Expenses at stabilized occupancy are $262,243.84 per month and the average expenses are $199,413.60 per month. Currently the property is 25% vacant.

STATEMENT OF WORK AND PERFORMANCE SCHEDULE

This section describes, at a minimum, the City's expectations of the successful Proponent ("Management Company") under the contract awarded from this RFP (the "Contract"). The successful Management Company shall have a minimum of 10 years of office and/or retail and/or residential management experience. Additionally, site managers should have a minimum of 7 years’ experience. The management team should include but not limited to.

1. Property Manager

2. Assistant Property Manager

3. Leasing Agent

4. Maintenance Supervisor

5. Maintenance Tech I

6. Maintenance Tech I or II

Off Site levels

1. Regional Manager

2. VP Operations

3. SVP Operations

Site hours M-Fri; 8:30am- 5:00pm

Point of Contact is Melissa Perez Regional Manager and Jasmine Brewer CoA contact.

Tenant calls for an emergency; it fits the list for an emergency, When delivering services under the Contract, Management Company must meet the highest standards prevalent in the industry most closely related to the services being provided. The Proponent selected for contract award from this RFP shall at a minimum, provide the City with the following commercial property management services, which services may be expanded from time to time at the City's sole discretion:

Property Management Services

• Financial Responsibility — Management Company shall collect and deposit all rents and other income due to the City as may be further specified in the Contract or the leases ("Revenue"). All revenue will be deposited by Management Company into a separate account acceptable to the City indicating the custodial nature thereof. Monthly net revenues shall be forwarded to the City after payment of authorized expenses and are due on or before the 15th of the following month in which those revenues are accrued.

The industry standard is an operating account and an escrow account for security deposits only. The financial institution must be covered by FDIC.

• Security Deposits — Subject to applicable law and the requirements of any loan documents governing the financing of the Property, Management Company shall deposit or cause to be deposited all tenant security and other deposits in a separate account established by the City and Management Company shall not commingle any other funds in such account (the "Security Deposit Account"). Management Company shall administer the security deposits in conformance with the terms of tenant leases and applicable law, including providing for the payment of interest on deposits, if required by law. The Security Deposit Account, (i) shall be an interest-bearing account and (ii) shall be maintained in such name or names as instructed by City. Any interest earned in the Security Deposit Account(s) accrues to the benefit of the city.

• Management Company shall be authorized to monthly withdraw the agreed upon management fees, carry-forward operating balance, petty cash, turn-over costs, services, operation, marketing, maintenance, staff and other costs from receipts prior to disbursement to the City. The expenditure threshold is $5k per invoice. Vendor must receive written approval for anything above that amount. All expenditures that exceed the monthly budget require justification and approval by the City. Management Company shall maintain full and complete accounting records and make these records available for review by the City or the City's representative(s) upon request. 4% of the revenue monthly and $6k per month.

The maximum monthly carry-forward balance to be used for the Property operating expenses shall not exceed one hundred thousand dollars ($100,000.00) unless otherwise specified by the City. This number may change depending on subsequent negotiations with the top-ranked

Proponent.

• Upon termination of the Contract or any authorized extension thereto, Management Company shall account for and return all funds collected to include, but not limited to, carry forward balance, petty cash, security deposit or any other funds to the City within 30 calendar days.

Financial Reporting, Budgeting Responsibilities and Expenditure Authority On or before the 15th of the following month, Management Company shall prepare and deliver the following reports to the City’s designated point(s) of contact:

• Monthly occupancy and availability reports

• Monthly statement of receipts and disbursements

• Monthly completed “Owner Property Management Report” which includes a narrative summary of any problem areas, steps or recommendations to rectify any problems and a summary of the property maintenance activities.

• Monthly complete and accurate Rent Roll

• Monthly cash balances shown to be due to the city

• Monthly itemization of all expenses, bills and invoices

• Budget comparison/variance report for each month and for the fiscal year-to-date, with an explanation of the reason for any significant variances

• Any additional reports upon request by the City

• Management Company shall, every October submit to the City, a January through

December budget for the following year to include all projected monthly operating revenues and expenditures. The City's financial year runs from July 1 to June 30 of the following year. The budget must include sufficient detail for all anticipated revenue sources and expenditures including, but not limited to, monthly management fees, carry-forward operating balance, petty cash, vendor services, operation, maintenance, security, staff costs and allocation of staff resources on-site and supervision. In addition, the budget shall include a maintenance plan and a priority list of capital improvements (items/actions anticipated to cost more than ten thousand dollars ($10,000) that may be necessary to protect health, life and safety of the tenants and/or Property.

• Management Company shall provide all reconciliation reporting timely, no later than March 1st of the following year. This includes CAM, Insurance, and Taxes as well as any other items that may be reconciled on the tenant accounts. Management Company must notify the city within 30 days of any reconciliation reporting prior to any correspondence or billing being sent out to tenants.

• Billing and Collection Activities — Management Company shall be responsible for the billing and collection of all charges or other income due with respect to the Property.

Subject to the City's prior approval, the Management Company shall have the right to utilize reasonable collection procedures to collect any past-due rentals or other charges or income derived from the Property and tenants. Management Company, with the City's prior approval, shall pay from revenue, as appropriate, all reasonable attorneys' fees and ordinary and customary costs incurred in connection with any collection activities not recovered from tenants. Management Company shall keep the City informed of collection activities monthly.

• Legal Actions — Notwithstanding anything in Billing and Collection Activities above to the contrary, Management Company shall not institute litigation with respect to collection activities or otherwise without the prior written consent of the City. The City shall pay, or shall authorize Management Company to pay from revenue, as appropriate, reasonable attorneys' fees and ordinary and customary costs incurred in connection with any collection activities related to the Property. Management Company will keep the City informed monthly of the Management Company’s collection activities under the Contract. The City will cooperate with the Management Company and the Management Company will cooperate with City in any proceedings instituted by the City to recover monies due to the City with respect to the Property or to recover possession of any portion of the Property.

• Complaints — Management Company shall handle all complaints and requests from tenants, concessionaires, licensees or other third parties related to the Property and shall record each in a systematic fashion to show the action taken by Management Company and status of each record. Management Company shall promptly notify the City of any material complaint made by Tenant, concessionaire, licensee, or other third party, of which Management Company receives notice or has actual knowledge of. Such notification to the City shall include a schedule of proposed corrective measures for all items detailed in the notice, including the cost of same, which measures shall be implemented by Management Company upon approval thereof by the City.

• Notification of Insurer — Management Company shall notify the City and the City's insurance company in writing promptly after receiving notice or knowledge of any bodily injury or property damage occurring at the Property which is reasonably likely to give rise to a claim by any tenant or third party. Management Company shall forward simultaneously to the City and the insurance broker promptly following receipt of any summons, subpoena, or other legal document served upon the Management Company relating to actual or alleged potential liability of the City.

• Leasing — Management Company shall perform the following services in connection with the leasing at the Property:

Nature of Services — Management company that provides third party management with high level of financial responsibility. Operating with transparency, safeguarding The City’s investments, and managing day-to-day operations and financial reporting with accountability and precision:

Be available or cause a representative of Management Company to be available to prospective tenants of the Property during reasonable hours as directed by City.

• Cooperate with qualified real estate leasing brokers and/or qualified leasing brokerage firms in showing the space to prospective tenants.

• Promptly notify City of (i) any request by any tenant of the Property for a lease concession, amendment, extension, or termination, (ii) any material default of any lease at the Property, and (iii) any bankruptcy filing affecting a tenant at the Property of which the Management Company has notice or knowledge.

• Within thirty (30) days after each new lease is made, the lease which shall be on the form acceptable to the City prepares and delivers to the City a copy of the lease executed and a lease abstract. Vendor should be licensed and established as an property management company, while certifications and licenses are not required they do have these certifications/licensing. They also follow Federal Housing guidelines and have Federal Fair Housing training

• Tenant Coordination — Management Company shall coordinate interactions with tenants at the Property on behalf of the City, including responding to tenant work order requests in a timely manner and ensuring that tenants are always provided with timely Property information.

• Advertising — At the City's expense and direction, Management Company shall (1) advertise the Property or portions thereof for rent, using periodicals, signs, plans, brochures, or displays, or such other means as Management Company may deem proper and advisable, subject to the City's approval, (2) place signs on the Property advertising the Property for rent, provided such signs comply with applicable State or local laws and are approved by City, and (3) advertise the Property along with other properties managed or owned by Management Company , so long as the City's share of such costs represents the City's share of the total advertising cost for the Property only.

• Property Repairs Company shall repair, replace and alter the Property as may be necessary to meet health, life, safety and generally accepted maintenance standards.

• Property Maintenance — Property Maintenance Manager assigned by Management Company shall maintain the Property in good, clean, and attractive condition according to generally-accepted property management standards. At the expense of the City, Property Maintenance Manager shall maintain or cause the Property to be maintained, including, without limitation, the buildings and other improvements on the Property, in good order, repair, and condition such that the Property shall be maintained in a first-class condition. Property Maintenance Manager shall operate, manage, maintain, repair and improve the buildings and other improvements located on the Property to keep them safe, sound, attractive and in rentable condition. Without limiting the generality of the foregoing, such maintenance shall include exterior grounds and landscaping services, routine repairs to improvements, cleaning and janitorial services, maintenance of mechanical systems and equipment and such other normal maintenance and minor alteration and repair work as may be advisable or necessary.

• Property Inspection (Maintenance) — As part of a continuing program to secure full performance by tenants of all maintenance duties for which they are responsible, Management Company shall inspect each tenant space in the Property as necessary (but never less frequently than once per year), subject to the rights of tenants, and report its findings to the City.

• Supervision — Management Company shall operate at an industry standard level for businesses in this specific field of expertise. Management Company will directly supervise and inspect the performance under all contracts and agreements entered into by Management Company, including, without limitation, the supervision, inspection and observation of all servicing, cleaning, decorating or routine maintenance work at the Property during the progress thereof and will approve or disapprove (as appropriate) all bitts submitted for payment therefor. In connection with the foregoing, Management

Company shall obtain all necessary receipts, releases, waivers, discharges and assurances reasonably necessary to keep the Property free from mechanics' and materialmen's liens and other claims, all of which documentation shall be in such format as is required by the City, and Management Company shall confirm that all service providers are properly insured. Management Company agrees to release, indemnify, defend, and hold harmless the City, its elected officials, officers, agents, employees, authorized representatives, successors, and assigns from and against any and all suits, actions, legal or administrative proceedings, claims, debts, demands, damages, liabilities, injuries, obligations, losses, judgments, charges, interest, attorneys t fees, costs, causes of action of every kind and character, whether in law or equity, and expenses of every kind or nature, whether arising before or after the termination of the Contract and in any manner directly or indirectly caused, occasioned, or contributed to in whole or in part, or claimed to be caused, occasioned, or contributed to in whole or in part, by reason of any act, omission, fault or negligence whether active or passive of Management Company, its officers, employees, agents, subcontractors or of anyone acting under its direction or control or on its behalf in connection with or incidental to the Contract.

▪ Management Company's aforesaid release, indemnity, and hold harmless obligations, or portions or applications thereof, shall apply even in the event of the fault or negligence, whether active or passive, or strict liability of the parties released, indemnified or held harmless to the fullest extent permitted by law, but in no event shall they apply to the extent that the liability is caused by the willful misconduct or sole negligence of the party released, indemnified, or held harmless. Management Company further agrees that this agreement to indemnify, defend, and hold harmless the parties released shall not be limited to the limits or terms of the insurance, if any, required under the Contract.

▪ The Management Company shall require any tenant, contractor or subcontractor that performs any work on the Property to comply with the indemnification provisions set forth here.

• Emergency Repairs — Management Company shall provide 24-hour emergency response service for the Property and its tenants to perform emergency repairs.

Notwithstanding the foregoing, Management Company may make expenditures or enter into contracts, at City’s expense, whose costs are not included in the then- current Annual Budget for repairs to the Property which, in Management Company's opinion, using reasonable business judgment, are immediately required to be made for the preservation and safety of the Property, to avoid the suspension of any essential service to or for the Property, to avoid danger to life or property at the Property, or to avoid a landlord default under the terms of any tenant lease ("Emergency Expenditures").

Management Company shall promptly, but in no event later than 24 hours from the time Not to exceed $5,000 per repair. Management Company learns of such emergencies, notify the city by telephone, facsimile, electronic mail or similar method of any such emergency. Promptly thereafter, Management Company shall send the City a written notice setting forth the nature of the emergency and any action taken in connection therewith. Except as set forth above with regard to Emergency Expenditures, extraordinary or unusual expenses shall not be made without the City's prior written consent.

• Establishment of Utilities — Management Company shall contract for electricity, gas, water, trash removal, telephone service, cleaning, vermin extermination, and any other required service(s).

• Security — If deemed necessary and upon direction of the City, Management Company shall contract for third-party security services.

Property Management Transition Responsibilities

• Within forty-five (45) days after execution of the Contract award, the Management Company shall prepare and submit to the City a written “Property Operation Plan" which must include, but not be limited to, a preventative maintenance plan and monthly schedule, an assessment of any necessary and projected capital improvements, an assessment of any issues concerning the life, safety, fire and security related to the Property and an assessment of the building condition and operating systems.

• Within forth-five (45) days prior to termination of the Contract the Management Company shall prepare and submit to the City a written "Property Management Transition Plan" which must include, but not limited to, providing the City with all utility account information, all vendor service contracts, an inventory of any City owned property and equipment, copies of all tenant files, copies of all public authority building permits, inspection reports and violation notices and the turnover of all building keys.

Vendor should provide reports monthly, quarterly and annually. Termination should be 120-day notice period and transfer of any operating accounting.

End Scope of Services