HomeMy WebLinkAboutAGENDA REPORT 2021 0602 CCSA REG ITEM 10HCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of June 2, 2021
ACTION APPROVED STAFF
RECOMMENDATION.
H. Consider Agreement with Linda L. Toth dba Home Sweet Home Property
Management for Property Management Services at City-owned
properties. Staff Recommendation: Approve Agreement with Linda L.
Toth dba Home Sweet Home Property Management; and authorize the
City Manager to sign the Agreement, subject to final language approval
of the City Manager. (Staff: Jessica Sandifer)
Item: 10.H.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Jessica Sandifer, Community Services Manager
DATE: 06/02/2021 Regular Meeting
SUBJECT: Consider Agreement with Linda L. Toth dba Home Sweet Home
Property Management for Property Management Services at City-
owned properties
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 under a two-year agreement to manage the residential rental properties. The
contract was renewed in 2017 for another two years. In 2018, the contract was amended
to include one commercial restaurant property at 50 Moorpark Avenue. Currently the City
has four residential and one commercial property that are managed by the property
manager.
DISCUSSION
The current agreement with Home Sweet Home expires on June 30, 2021. As such, staff
is recommending renewing the contract with Home Sweet Home. Home Sweet Home
has performed well in the management of the residential rental properties and they have
a good relationship with the current tenants. Having a professional manager also means
that the properties are well taken care of and any safety issues are quickly identified,
reducing the City’s potential liability exposure. Due to our prior experience with Home
Sweet Home, the City Manager and the Department Director have determined that
services can most cost effectively and competently be provided by Home Sweet Home.
Therefore, formal bidding is being waived for these services as provided for in City Council
Resolution No. 2019-3829 Governing Procurement of Professional Services, Section 4.B.
Item: 10.H.
249
Honorable City Council
06/02/2021 Regular Meeting
Page 2
The proposed agreement renewal maintains the petty cash amount of $4,000 to pay for
maintenance costs associated with the rental units, as well as $1,000 of spending
authority for the petty cash. Consistent with the previous Agreement, there is a fixed fee
payment of $595 each time a property becomes vacant and needs to be re-rented. The
fee is used by Home Sweet Home to advertise the property and process potential new
tenants. The management fee will continue to be 12% of receipted rents. The Agreement
term is proposed for two-years.
FISCAL IMPACT
The current monthly cost for the property manager to manage five properties is $1,512
per month. The contract will have a not-to-exceed amount of $25,000 annually for the
two-year term, for a total not to exceed amount for the two-year term of $50,000. In
addition to the on-going management fees, the not-to-exceed amount takes into account
potential costs paid to the property manager when re-renting the properties should they
become vacant during the term.
The funding for the property manager is offset by 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 $83,100 deposited in the City-wide Traffic Mitigation Fund (2002), $48,000 to LA
AOC Fund (2014), and the remainder of $20,100 deposited in the Housing Successor
Agency Fund (2123).
There are sufficient funds included in the Fiscal Year 2021/2022 budget request to
provide funding for these services.
STAFF RECOMMENDATION
Approve Agreement with Linda L. Toth dba Home Sweet Home Property Management;
and authorize the City Manager to sign the Agreement, subject to final language approval
of the City Manager.
Attachment: Draft Agreement Linda L. Toth dba Home Sweet Home Property Management
250
AGREEMENT BETWEEN THE CITY OF MOORPARK AND
LINDA L. TOTH DBA HOME SWEET HOME PROPERTY MANAGEMENT
FOR PROPERTY MANAGEMENT SERVICES
THIS AGREEMENT, is made and effective as of this _________ day of
________________________, 2021, between the City of Moorpark, a municipal
corporation (“City”) and Linda L. Toth, an individual dba Home Sweet Home Property
Management (“Property Manager”). In consideration of the mutual covenants and
conditions set forth herein, the parties agree as follows:
WHEREAS, City has the need for property management services; and
WHEREAS, Property Manager specializes in providing such services and has the
proper work experience and real estate certifications as required by Business and
Professions Code Section 10000 et. seq., to carry out the duties involved.
NOW, THEREFORE, in consideration of the mutual covenants, benefits, and
premises herein stated, the parties hereto agree as follows:
1. TERM
The term of this Agreement shall be from July 1, 2021 to June 30, 2023, unless
this Agreement is terminated or suspended pursuant to this Agreement.
2. SCOPE OF SERVICES
City does hereby retain Property Manager, as an independent contractor, in a
contractual capacity to provide residential and commercial property management
services, ensuring that properties identified in Exhibit D (“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 or commercial 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 twenty-five thousand dollars ($25,000.00) annually for the term
of the Agreement, 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.
ATTACHMENT
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Property Manager agrees to comply with California Government Code Section
7550 in the performance of the work scope outlined in Exhibits C and D, and agrees to
sign and submit the compliance document attached to this Agreement as Exhibit B.
3. PERFORMANCE
Property Manager shall at all times faithfully, competently and to the best of their
ability, experience, standard of care, and talent, perform all tasks described herein.
Property Manager shall employ, at a minimum, generally accepted standards and
practices utilized by persons engaged in providing similar services as are required of
Property Manager hereunder in meeting its obligations under this Agreement.
4. MANAGEMENT
The individual directly responsible for Property Manager’s overall performance of
the Agreement provisions herein above set forth and to serve as principal liaison between
City and Property Manager shall be Linda L. Toth, and no other individual may be
substituted without the prior written approval of the City Manager.
The City’s contact person in charge of administration of this Agreement, and to
serve as principal liaison between Property Manager and City, shall be the City Manager
or the City Manager’s designee.
5. PAYMENT
Property Manager shall submit to the City a completed Internal Revenue Service
(IRS) W-9 form before the City will approve payment for any invoice submitted to the City
by Property Manager for payment.
For rented properties the City agrees to pay Property Manager twelve percent
(12%) of gross rent monthly. For vacant properties City agrees to pay Property Manager,
in accordance with the payment rates and terms as set forth in Exhibit D for vacant
properties, based on completion of itemized tasks. This amount shall not exceed twenty-
five thousand dollars ($25,000.00) annually for the total term of the Agreement.
Property Manager shall not be compensated for any other services rendered in
connection with its performance of this Agreement, unless such additional services and
compensation are authorized, in advance, in a written amendment to the Agreement
executed by both parties.
Property Manager shall submit invoices monthly for actual services performed.
Invoices shall be submitted on or about the first business day of each month, or as soon
thereafter as practical, for services provided in the previous month. Payment shall be
made within fifteen (15) days of receipt of each invoice as to all non-disputed fees.
The Property Manager shall submit a Remittance Report, along with the City’s
gross rental proceeds on or before the fifteenth (15th) day of the month. The Remittance
Report will show the rental amounts received and any added late fees.
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Property Manager has previously been provided petty cash in the amount of four
thousand dollars ($4,000), to be held in trust by Property Manager, to pay for property
maintenance. When expenditures have been made, the Property Manager will submit
invoices including receipts for purchases or services paid for out of the petty cash
account, requesting replenishment of petty cash account monthly. Petty cash
replenishment invoices shall be submitted no later than the fifteenth (15th) of the month
for property maintenance performed in the previous month. All petty cash funds and
supporting documentation are to be returned by Property Manager at the termination of
the Agreement term and any extended Agreement term.
Both parties acknowledge that the City shall not be obligated to pay or reimburse
the Property Manager for any expenses incurred by the Property Manager in connection
with normal business expenses, including but not limited to, mileage, office lease, office
equipment, office supplies, postage or delivery costs, banking fees, or any general
overhead expense of the Property Manager, or for any salaries of Property Manager’s
employees, contractors, or agents. Any expense or reimbursable cost appearing on an
invoice shall be accompanied by receipts or other documentation subject to approval of
the City Manager. If the City disputes any of Property Manager’s fees or expenses it shall
give written notice to Property Manager within fifteen (15) days of receipt of any invoice
showing fees that are the subject of the dispute. Property Manager will then have five (5)
business days to submit additional requested information. If, after submittal of additional
information, City determines that fee or expense is not an appropriate expense, as
allowed by this Agreement, then Property Manager agrees to revise the disputed invoice
and remove the unauthorized expense.
6. TERMINATION OR SUSPENSION WITHOUT CAUSE
The City may at any time, for any reason, with or without cause, suspend or terminate
this Agreement, or any portion hereof, by serving upon the Property Manager at least
thirty (30) days prior written notice. Upon delivery of said notice, the Property Manager
shall immediately cease all work under this Agreement, unless the notice provides
otherwise. If the City suspends or terminates a portion of this Agreement, such
suspension or termination shall not make void or invalidate the remainder of this
Agreement.
The Property Manager may terminate this Agreement only by providing City with
written notice no less than sixty (60) days in advance of such termination.
In the event this Agreement is terminated or suspended pursuant to this Section,
the City shall pay to Property Manager the actual value of the work performed up to the
time of termination or suspension, provided that the work performed is of value to the
City. Upon termination or suspension of the Agreement pursuant to this Section, the
Property Manager will submit an invoice to the City pursuant to this Agreement.
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7. DEFAULT OF PROPERTY MANAGER
The Property Manager’s failure to comply with the provisions of this Agreement
shall constitute a default. In the event that Property Manager is in default for cause under
the terms of this Agreement, City shall have no obligation or duty to continue
compensating Property Manager for any work performed after the date of default and can
terminate or suspend this Agreement immediately by written notice to the Property
Manager. If such failure by the Property Manager to make progress in the performance
of work hereunder arises out of causes beyond the Property Manager’s control, and
without fault or negligence of the Property Manager, it shall not be considered a default.
If the City Manager or the City Manager’s designee determines that the Property
Manager is in default in the performance of any of the terms or conditions of this
Agreement, designee shall cause to be served upon the Property Manager a written
notice of the default. The Property Manager shall have five (5) days after service upon it
of said notice in which to cure the default by rendering a satisfactory performance. In the
event that the Property Manager fails to cure its default within such period of time, the
City shall have the right, notwithstanding any other provision of this Agreement, to
terminate this Agreement without further notice and without prejudice to any other remedy
to which it may be entitled at law, in equity or under this Agreement.
8. AUTHORITY LIMITED
Property Manager’s authority shall be derived wholly from this Agreement, and
Property Manager has no authority to act for or represent the City except as herein
specified.
9. OWNERSHIP OF DOCUMENTS
Property Manager shall maintain complete and accurate records with respect to
sales, costs, expenses, receipts, and other such information required by City that relate
to the performance of services under this Agreement. Property Manager shall maintain
adequate records of services provided in sufficient detail to permit an evaluation of
services. All such records shall be maintained in accordance with generally accepted
accounting principles and shall be clearly identified and readily accessible. Property
Manager shall provide free access to the to the City Manager or the City Manager’s
designees at reasonable times to such books and records; shall give the City the right to
examine and audit said books and records; shall permit City to make transcripts therefrom
as necessary; and shall allow inspection of all work, data, documents, proceedings, and
activities related to this Agreement. Notification of audit shall be provided at least two (2)
business days before any such audit is conducted. Property Manager to provide the
reports, as described in Exhibit C to the City.
Upon completion of, or in the event of termination or suspension without cause of
this Agreement, all original documents, including but not limited to work orders, receipts
for services from third party providers, designs, drawings, maps, models, computer files,
surveys, notes, and other documents prepared or used in the course of providing the
services to be performed pursuant to this Agreement shall become the sole property of
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the City and may be used, reused, or otherwise disposed of by the City without the
permission of the Property Manager. With respect to computer files, Property Manager
shall make available to the City, at the Property Manager’s office and upon reasonable
written request by the City, the necessary computer software and hardware for purposes
of accessing, compiling, transferring, and printing computer files.
10. COLLECTING AND HANDLING MONEY
Property Manager shall diligently undertake the collection of rents and other
charges payable by tenants under the terms of their leases. All sums collected by
Property Manager shall be deposited immediately in a separate account and any interest
accrued in this account shall accrue to the benefit of the City. All accounts shall be
approved by and established in the City’s name, for the benefits of, and held in trust for,
the City, in a bank which has been approved by the City. Funds collected by Property
Manager from tenants shall not be commingled with any other funds collected by Property
Manager not associated with Properties. If required by law, Property Manager shall
establish separate accounts for holding tenants’ security deposits, and funds in such
accounts shall not be commingled with other funds of Property Manager. Funds may only
be withdrawn from the account by Property Manager for permissible expenditures
pursuant to this Agreement.
11. REPAIRS AND MAINTENANCE
Property Manager shall make all repairs and perform all maintenance on the
buildings, grounds, and other improvements, including landscape maintenance, for the
Properties necessary to maintain the Properties in good well-maintained condition, and
in accordance with applicable property rental rules, laws, and regulations. Property
Manager will get three (3) price quotes for each repair and will select the lowest cost
repair. Property Manager shall also perform or furnish any and all emergency repairs or
services necessary for the preservation of the Properties or to avoid the suspension of
any services to the Properties or danger to life or property. Property Manager does not
need to provide multiple quotes for emergency repairs. Property Manager shall give
prompt notice of any emergency repairs to City. Emergency repairs or services may be
made or furnished by Property Manager without City’s prior written approval, but only if it
is not feasible to secure such prior written approval. In any event, Property Manager
shall, not later than one (1) business day after performing or furnishing an emergency
repair or service, notify the City, in writing, of the details and costs thereof. Property
Manager’s obligations for repair and maintenance of the Properties shall not include
repair and maintenance of meters and service lines owned by an entity that provides
utilities such as water, sewer, electricity, telephone/data, natural gas, and cable television.
Property Manager shall perform all other services which are normally performed in
connection with the operation and management of similar professionally managed
properties.
The Property Manager shall make all payments for repairs and maintenance costs
incurred and equipment and supply purchases made in accordance with this Agreement,
and under contracts approved or authorized under this Agreement, from petty cash
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provided to the Property Manager as outlined in Section 5, subject to spending authorized
outlined below. Property Maintenance expenditures will not cause the annual expenditure
under a budget line item to exceed the written budget approved by the City Manager or
City Manager’s designee, and will not cause the total projected annual expenditures to
exceed the approved budget. City will provide Property Manager copies of line item
budgets for each property. However, in the case of casualty, breakdown in machinery,
or other emergency, the Property Manager may make reasonable payments for repairs,
equipment, and supplies in excess of such amounts, if emergency action is necessary to
prevent additional damage or a greater total expenditure, but in no event shall the
Property Manager be authorized to expend more than one thousand dollars ($1,000.00)
without obtaining written approval from the City Manager or City Manager’s designee.
12. NOTICES AND CLAIMS
Property Manager shall promptly (no less than one business day) deliver to City
all notices received from any contractor or tenant or any other party with respect to the
Properties. Property Manager shall notify the City of any personal injury or property
damage occurring to, or claimed by, any tenant or third party on or with respect to the
Properties promptly (no less than one business day) upon obtaining actual knowledge
thereof and to promptly (no less than one business day) forward to City copies of any
summons, subpoena, or legal document served upon the Property Manager relating to
actual or alleged potential liability of the City, the Property Manager, or the Properties.
Property Manager shall give City all pertinent information and reasonable assistance in
the defense or disposition of any claims, demands, suits, or other legal proceedings which
may be made or instituted by any third party against City which arise out of any matters
relating to Properties, this Agreement, or Property Manager.
13. TENANT RELATIONS
Property Manager shall make itself fully familiar with the terms and provisions of
all leases within the Properties and shall perform all duties of City as landlord under each
such lease in conformance with applicable State and Federal law, so that each such lease
shall remain in full force and effect, with no default by City, and shall enforce the full
performance of all obligations of the tenant under each such lease. Property Manager
shall maintain business-like relations with tenants, receive requests, complaints, and the
like from tenants and respond and act upon the foregoing in a reasonable fashion. To
ensure full performance by tenants of all of their obligations, Property Manger shall
inspect the Properties no less than every six (6) months, and shall make demands on any
tenants who have not performed such obligations to do so. Property Manager shall notify
all tenants of all rules, regulations, and notices as may be promulgated by City, governing
bodies, and insurance carriers.
14. INDEMNIFICATION AND HOLD HARMLESS
Property Manager shall indemnify, defend and hold harmless City, and any and all
of its officers, employees, and agents (“City Indemnitees”) from and against any and all
loss, damages, liabilities, judgments, actions, claims, suits, costs, and expenses
whatsoever, including reasonable legal counsels’ fees and costs of litigation (“Claims”),
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regardless of merits or outcome of any such Claim, arising from or in any manner (a)
related to or arising from Property Manager’s negligent act or omission, whether alleged
or actual, regarding performance of services or work conducted or performed pursuant to
this Agreement or any acts beyond the scope of Property Manager’s authority hereunder,
(b) by any person or entity for commissions or brokerage fees based on agreements
between the claimant and Property Manager, or (c) accruing to or resulting from any and
all persons, firms, or corporations furnishing or supplying work, services, materials,
equipment, or supplies arising from or in any manner connected to Property Manager’s
negligent act or omission regarding performance of service or work conducted or
performed pursuant to this Agreement or any acts beyond the scope of Property
Manager’s authority hereunder. If Claims are filed against City Indemnities which allege
negligence on behalf of the Property Manager, Property Manager shall have no right of
reimbursement against City Indemnitees for the costs of defense even if negligence is not
found on the part of the Property Manager; however, Property Manager shall not be
obligated to indemnify City Indemnitees from Claims arising from the sole negligence or
willful misconduct of the City Indemnitees. In the event the City Indemnitees are made a
party to any action, lawsuit, or other adversarial proceeding arising from Property
Manager’s performance of this Agreement, the Property Manager shall provide a defense
to the City Indemnitees or at the City’s option reimburse the City Indemnitees their costs
of defense, including reasonable legal counsels’ fees incurred in defense of such claims.
The foregoing indemnitees shall survive termination of this Agreement.
Indemnity for professional liability: When the law establishes a professional
standard of care for property management services, to the fullest extent permitted by law,
Property Manager shall indemnify, protect, defend and hold harmless City and any and
all of its officials, employees and agents (“Indemnified Parties”) from and against any and
all losses, liabilities, damages, costs and expenses, including legal counsels’ fees and
costs to the extent same are caused in whole or in part by any negligent or wrongful act,
error or omission of Property Manager, its officers, agents, employees or contractors (or
any agency or individual that Property Manager shall bear the legal liability thereof) in the
performance of professional services under this Agreement.
Property Manager agrees to obtain executed indemnity agreements with
provisions identical to those set forth in this Section in favor of City from each and every
contractor, or any other person or entity involved by, for, with, or on behalf of Property
Manager in the performance of this Agreement. In the event Property Manager fails to
obtain such indemnity obligations from others as required here, Property Manager agrees
to be fully responsible according to the terms of this Section. Failure of City to monitor
compliance with these requirements imposes no additional obligations on City and will in
no way act as a waiver of any rights hereunder. This obligation to indemnify and defend
City as set forth here is binding on the successors, assigns, or heirs of Property Manager
and shall survive the termination of this Agreement or this Section.
City does not and shall not waive any rights that it may have against Property
Manager by reason of this Section, because of the acceptance by City, or the deposit with
City, of any insurance policy or certificate required pursuant to this Agreement. The hold
harmless and indemnification provisions shall apply regardless of whether or not said
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insurance policies are determined to be applicable to any losses, liabilities, damages,
costs, and expenses described in this Section.
15. INSURANCE
Property Manager shall maintain prior to the beginning of and for the duration of
this Agreement insurance coverage as specified in Exhibit A attached hereto and
incorporated herein by this reference as though set forth in full.
16. INDEPENDENT CONTRACTOR
Property Manager is and shall at all times remain as to the City a wholly
independent Contractor. The personnel performing the services under this Agreement on
behalf of Property Manager shall at all times be under Property Manager’s exclusive
direction and control. Neither City nor any of its officers, employees, or agents shall have
control over the conduct of Property Manager or any of Property Manager’s officers,
employees, or agents, except as set forth in this Agreement. Property Manager shall not
at any time or in any manner represent that it or any of its officers, employees, or agents
are in any manner officers, employees, or agents of the City. Property Manager shall not
incur or have the power to incur any debt, obligation, or liability against City, or bind City
in any manner.
No employee benefits shall be available to Property Manager in connection with
the performance of this Agreement. Except for the fees paid to Property Manager as
provided in the Agreement, City shall not pay salaries, wages, or other compensation to
Property Manager for performing services hereunder for City. City shall not be liable for
compensation or indemnification to Property Manager for injury or sickness arising out of
performing services hereunder.
17. LEGAL RESPONSIBILITIES
The Property Manager shall keep itself informed of local, state and federal laws
and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Property Manager shall at all
times observe and comply with all such laws and regulations, including but not limited to
the Americans with Disabilities Act and Occupational Safety and Health Administration
laws and regulations. The City, and its officers and employees, shall not be liable at law
or in equity occasioned by failure of the Property Manager to comply with this Section.
Property Manager shall comply with the requirements of the Fair Housing Act of 1968 and
all applicable Landlord - Tenant Law.
18. ANTI DISCRIMINATION
Neither the Property Manager, nor any contractor under the Property Manager,
shall discriminate in employment of persons upon the work because of race, religious
creed, color, national origin, ancestry, physical disability, mental disability, medical
condition, genetic information, marital status, sex, gender, gender identity, gender
expression, age, sexual orientation, or military and veteran status of such person, or any
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other basis protected by applicable federal, state, or local law, except as provided in
Section 12940 of the Government Code. The Property Manager shall have responsibility
for compliance with this Section, if applicable [Labor Code Sec 1735].
19. UNDUE INFLUENCE
Property Manager declares and warrants that no undue influence or pressure is
used against or in concert with any officer or employee of the City in connection with the
award, terms or implementation of this Agreement, including any method of coercion,
confidential financial arrangement, or financial inducement. No officer or employee of the
City will receive compensation, directly or indirectly from Property Manager, or any officer,
employee or agent of Property Manager, in connection with the award of this Agreement
or any work to be conducted as a result of this Agreement. Violation of this Section shall
be a material breach of this Agreement entitling the City to any and all remedies at law or
in equity.
20. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of the City, or their designees or agents, and no
public official who exercises authority over or responsibilities with respect to the Services
during his/her tenure or for one (1) year thereafter, shall have any interest, direct or
indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be
performed in connection with the Services performed under this Agreement.
21. CONFLICT OF INTEREST
Property Manager covenants and agrees that if Property Manager and/or its
subcontractors intends to provide service or enter into any contract with any developer(s)
and/or public agency(ies) owning property and/or processing an entitlement application
for property in the City or its Area of Interest, during the Term of this Agreement, Property
Manager shall immediately notify the City, in writing, informing the City of the nature of
the contract, prior to commencing with any work or entering into such contract. The City
Manager shall determine whether potential conflict of interest exists and will assign any
work related to the conflict to an alternate contractor.
Property Manager agrees not to enter into any transaction concerning the
properties with any family members of Property Manager. The prohibition also applies to
the use of any service providers which are owned and/or operated by family members of
Property Manager.
Property Manager also agrees to ensure that City properties are not rented to City
Employees or their Family members, as defined, without the prior written approval of the
City Manager or his/her designee.
“Family members” is defined as follows: mother, father, grandfather, grandmother,
aunt, uncle, cousin, sister, brother, son, daughter, step-son, step-daughter, son-in-law,
daughter-in-law, nephew, niece, grandchild, mother-in-law, father-in-law, brother-in-law,
sister-in-law, spouse as defined as a partner in marriage (California Civil Code Section
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4100), and domestic partner as defined by California Family Code Section 297 and
including the requirement for the filing of a Declaration of Domestic Partnership with the
Secretary of State. In addition, “family members” shall be defined to include non-blood
relatives as a result of a subsequent marriage commonly referred to as a step-relative,
including but not limited to stepmother, stepfather, stepsister, stepbrother, stepson,
stepdaughter, step-grandchild, step-mother-in-law, step-father-in-law, step-brother-in-
law, and step-sister-in-law.
22. NOTICES
Any notice to be given pursuant to this Agreement shall be in writing, and all such
notices and any other document to be delivered shall be delivered by personal service or
by deposit in the United States mail, certified or registered, return receipt requested, with
postage prepaid, or by reputable overnight messenger, and addressed to the party for
whom intended as follows:
To: City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, California 93021
To: Linda L. Toth
Home Sweet Home Property Management
14711 Princeton Avenue, #3
Moorpark, California 93021
Either party may, from time to time, by written notice to the other, designate a
different address or contact person, which shall be substituted for the one above
specified. Notices, payments and other documents shall be deemed delivered upon
receipt by personal service or one (1) business day after delivery to the messenger, or on
the date of delivery or attempted delivery as shown on the return receipt, as applicable.
23. CHANGE IN NAME
Should a change be contemplated in the name or nature of the Property Manager’s
legal entity, the Property Manager shall first notify the City in writing in order that proper
steps may be taken to have the change reflected in the City files.
24. ASSIGNMENT
Property Manager shall not assign this Agreement or any of the rights, duties or
obligations hereunder. It is understood and acknowledged by the parties that Property
Manager is uniquely qualified to perform the services provided for in this Agreement.
25. LICENSES
At all times during the term of this Agreement, Property Manager shall have in full
force and effect, all licenses required of it by law for the performance of the services in
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this Agreement. Property Manager also agrees to ensure that all vendors and contractors
hired by Property Manager to perform services under this Agreement have a City
Business Registration.
26. VENUE AND GOVERNING LAW
This Agreement is made, entered into, and executed in Ventura County, California,
and any action filed in any court or for arbitration for the interpretation, enforcement or
other action of the terms, conditions, or covenants referred to herein shall be filed in the
applicable court in Ventura County, California. The City and Property Manager
understand and agree that the laws of the State of California shall govern the rights,
obligations, duties, and liabilities of the parties to this Agreement and also govern the
interpretation of this Agreement.
27. COST RECOVERY
In the event any action, suit or proceeding is brought for the enforcement of, or the
declaration of any right or obligation pursuant to this Agreement or as a result of any
alleged breach of any provision of this Agreement, the prevailing party shall be entitled to
recover its costs and expenses from the losing party, and any judgment or decree
rendered in such a proceeding shall include an award thereof.
28. TIME OF ESSENCE
Time is of the essence of every provision hereof in which time is factor.
29. ENTIRE AGREEMENT
This Agreement and the Exhibits attached hereto contain the entire understanding
between the parties relating to the obligations of the parties described in this Agreement.
All prior or contemporaneous agreements, understandings, representations, and
statements, oral or written, are merged into this Agreement and shall be of no further
force or effect. Each party is entering into this Agreement based solely upon the
representations set forth herein and upon each party’s own independent investigation of
any and all facts such party deems material.
30. CAPTIONS OR HEADINGS
The captions and headings of the various Articles, Paragraphs, and Exhibits of this
Agreement are for convenience and identification only and shall not be deemed to limit
or define the content of the respective Articles, Paragraphs, and Exhibits hereof.
31. AMENDMENTS
Any amendment, modification, or variation from the terms of this Agreement shall
be in writing and shall be effective only upon approval by both parties to this Agreement.
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32. PRECEDENCE
In the event of conflict, the requirements of the City’s Request for Proposal, if any,
and this Agreement shall take precedence over those contained in the Property
Manager’s Proposal.
33. INTERPRETATION OF AGREEMENT
Should interpretation of this Agreement, or any portion thereof, be necessary, it is
deemed that this Agreement was prepared by the parties jointly and equally, and shall
not be interpreted against either party on the ground that the party prepared the
Agreement or caused it to be prepared.
34. WAIVER
No waiver of any provision of this Agreement shall be deemed, or shall constitute,
a waiver of any other provision, whether or not similar, nor shall any such waiver constitute
a continuing or subsequent waiver of the same provision. No waiver shall be binding
unless executed in writing by the party making the waiver.
35. AUTHORITY TO EXECUTE
The person or persons executing this Agreement on behalf of the Property
Manager warrants and represents that he/she has the authority to execute this Agreement
on behalf of the Property Manager and has the authority to bind Property Manager to the
performance of obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement 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:
__________________________________
Ky Spangler, City Clerk
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Exhibit A
INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of Work, Property Manager will
maintain insurance in conformance with the requirements set forth below. Property
Manager will use existing coverage to comply with these requirements. If that existing
coverage does not meet requirements set forth here, Property Manager agrees to amend,
supplement or endorse the existing coverage to do so. Property Manager acknowledges
that the insurance coverage and policy limits set forth in this section constitute the
minimum amount of coverage required. Any insurance proceeds available to the City in
excess of the limits and coverage required in this Agreement and which is applicable to
a given loss, will be available to the City.
Property Manager shall provide the following types and amounts of insurance:
Commercial General Liability Insurance using Insurance Services Office (ISO)
“Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense
costs must be paid in addition to limits. There shall be no cross liability exclusion for claims
or suits by one insured against another. Limits are subject to review but in no event less
than $1,000,000 per occurrence for all covered losses and no less than $2,000,000
general aggregate.
Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including
symbol 1 (Any Auto) or the exact equivalent. Property Manager shall maintain automobile
insurance arising out of or in connection with Work to be performed under this Agreement,
including coverage for any owned, hired, non-owned, or rented vehicles, in an amount
not less than $1,000,000 combined single limit for each accident. If Property Manager or
Property Manager’s employees will use personal autos in any way on this project,
Property Manager shall provide evidence of personal auto liability for each such person.
Professional Liability or Errors and Omissions Insurance as appropriate shall be written
on a policy form coverage specifically designed to protect against acts, errors or
omissions of the Property Manager and “Covered Professional Services” as designated
in the policy must specifically include work performed under this Agreement. The policy
limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must
“pay on behalf of” the insured and must include a provision establishing the insurer’s duty
to defend. The policy retroactive date shall be on or before the effective date of this
Agreement.
Workers’ Compensation on a state-approved policy form providing statutory benefits as
required by law with employer’s liability limits no less than $1,000,000 per accident or
disease.
Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements,
shall provide coverage at least as broad as specified for the underlying coverages.
Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in
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addition to policy limits. Policy shall contain a provision obligating insurer at the time
insured’s liability is determined, not requiring actual payment by the insured first. There
shall be no cross-liability exclusion precluding coverage for claims or suits by one insured
against another. Coverage shall be applicable to the City for injury to employees of
Property Manager, contractor, or others involved in the Work. The scope of coverage
provided is subject to approval by the City following receipt of proof of insurance as
required herein. Limits are subject to review.
Insurance procured pursuant to these requirements shall be written by insurers that are
admitted carriers in the State of California and with an A.M. Bests rating of A- or better
and a minimum financial size of VII.
General conditions pertaining to provision of insurance coverage by Property Manager.
Property Manager and the City agree to the following with respect to insurance provided
by Property Manager:
1. Property Manager agrees to have its insurer endorse the third-party general liability
coverage required herein to include as additional insureds the City, its officials,
employees, and agents, using standard ISO endorsement CG 2010 and CG 2037
with an edition acceptable to the City. Property Manager also agrees to require all
contractors and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall
prohibit Property Manager, or Property Manager’s employees, or agents, from
waiving the right to subrogation prior to a loss. Property Manager agrees to waive
subrogation rights against the City regardless of the applicability of any insurance
proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and available or
applicable to this Agreement are intended to apply to the full extent of the policies.
Nothing contained in this Agreement or any other agreement relating to the City or
its operation limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these
requirements if they include limiting endorsement of any kind that has not been
first submitted to the City and approved in writing.
5. No liability policy shall contain any provision or definition that would serve to
eliminate so-called “third party action over” claims, including any exclusion for
bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification, and
additional requirements by the City, as the need arises. Property Manager shall
not make any reductions in scope of coverage (e.g. elimination of contractual
liability or reduction of discovery period) that may affect the City’s protection
without the City’s prior written consent.
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7. Proof of compliance with these insurance requirements, consisting of certificates
of insurance evidencing all of the coverages required and an additional insured
endorsement to Property Manager’s general liability policy, shall be delivered to
city at or prior to the execution of this Agreement. In the event such proof of any
insurance is not delivered as required, or in the event such insurance is canceled
or reduced at any time and no replacement coverage is provided, the City has the
right, but not the duty, to obtain any insurance it deems necessary to protect its
interests under this or any other Agreement and to pay the premium. Any premium
so paid by the City shall be charged to and promptly paid by Property Manager or
deducted from sums due Property Manager, at the City’s option.
8. Certificate(s) are to reflect that the insurer will provide 30 days notice to the City of
any cancellation or reduction of coverage. Property Manager agrees to require its
insurer to modify such certificates to delete any exculpatory wording stating that
failure of the insurer to mail written notice of cancellation or reduction of coverage
imposes no obligation, or that any party will “endeavor” (as opposed to being
required) to comply with the requirements of the certificate.
9. It is acknowledged by the parties of this Agreement that all insurance coverage
required to be provided by Property Manager or any subcontractor, is intended to
apply first and on a primary, non-contributing basis in relation to any other
insurance or self-insurance available to the City.
10. Property Manager agrees to ensure that subcontractors, and any other party
involved with the Work who is brought onto or involved in the Work by Property
Manager, provide the same minimum insurance required of Property Manager.
Property Manager agrees to monitor and review all such coverage and assumes
all responsibility for ensuring that such coverage is provided in conformity with the
requirements of this section. Property Manager agrees that upon request, all
agreements with subcontractors and others engaged in the Work will be submitted
to the City for review.
11. Property Manager agrees not to self-insure or to use any self-insured retentions or
deductibles on any portion of the insurance required herein and further agrees that
it will not allow any contractor, subcontractor, Architect, Engineer, or other entity
or person in any way involved in the performance of Work contemplated by this
Agreement to self-insure its obligations to the City. If Property Manager’s existing
coverage includes a deductible or self-insured retention, the deductible or self-
insured retention must be declared to the City. At that time, the City shall review
options with the Property Manager, which may include reduction or elimination of
the deductible or self-insured retention, substitution of other coverage, or other
solutions.
12. The City reserves the right at any time during the term of the Agreement to change
the amounts and types of insurance required by giving the Property Manager 90
days advance written notice of such change. If such change results in substantial
additional cost to the Property Manager, the City will negotiate additional
compensation proportional to the increased benefit to the City.
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13. For purposes of applying insurance coverage only, this Agreement will be deemed
to have been executed immediately upon any party hereto taking any steps that
can be deemed to be in furtherance of or towards performance of this Agreement.
14. Property Manager acknowledges and agrees that any actual or alleged failure on
the part of the City to inform Property Manager of non-compliance with an
insurance requirement in no way imposes any additional obligations to the City nor
does it waive any rights hereunder in this or any other regard.
15. Property Manager will renew the required coverage annually as long as the City,
or its employees or agents face an exposure from operations of any type pursuant
to this Agreement. This obligation applies whether or not the Agreement is
canceled or terminated for any reason. Termination of this obligation is not
effective until the City executes a written statement to that effect.
16. Property Manager shall provide proof that policies of insurance required herein
expiring during the term of this Agreement have been renewed or replaced with
other policies providing at least the same coverage. Proof that such coverage has
been ordered shall be submitted prior to expiration. A coverage binder or letter
from Property Manager’s insurance agent to this effect is acceptable. A certificate
of insurance and/or additional insured endorsement as required in these
specifications applicable to the renewing or new coverage must be provided to the
City within five days of the expiration of coverage.
17. The provisions of any Workers’ Compensation or similar act will not limit the
obligations of Property Manager under this Agreement. Property Manager
expressly agrees not to use any statutory immunity defenses under such laws with
respect to the City, its employees, officials, and agents.
18. Requirements of specific coverage features or limits contained in this section are
not intended as limitations on coverage, limits, or other requirements nor as a
waiver of any coverage normally provided by any given policy. Specific reference
to a given coverage feature is for purposes of clarification only as it pertains to a
given issue, and is not intended by any party or insured to be limiting or all-
inclusive.
19. These insurance requirements are intended to be separate and distinct from any
other provision in this Agreement and are intended by the parties here to be
interpreted as such.
20. The requirements in this section supersede all other sections and provisions of this
Agreement to the extent that any other section or provision conflicts or impairs the
provisions of this section.
21. Property Manager agrees to be responsible for ensuring that no contract used by
any party involved in any way with the Work reserves the right to charge the City
or Property Manager for the cost of additional insurance coverage required by this
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Agreement. Any such provisions are to be deleted with reference to the City. It is
not the intent of the City to reimburse any third party for the cost of complying with
these requirements. There shall be no recourse against the City for payment of
premiums or other amounts with respect thereto.
22. Property Manager agrees to provide immediate notice to City of any claim or loss
against Property Manager arising out of the work performed under this Agreement.
The City assumes no obligation or liability by such notice, but has the right (but not
the duty) to monitor the handling of any such claim or claims if they are likely to
involve the City.
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EXHIBIT B
CITY OF MOORPARK
Scope of Work Requirement for Professional Services Agreements
Compliance with California Government Code Section 7550
Consultant shall sign and include this page in any document or written reports prepared by
Consultant for the City of Moorpark (City) to which California Government Code Section 7550
(Government Code §7550) applies. Government Code §7550 reads:
“(a) Any document or written report prepared for or under the direction of a state
or local agency, that is prepared in whole or in part by nonemployees of the
agency, shall contain the numbers and dollar amounts of all contracts and
subcontracts relating to the preparation of the document or written report; if the
total cost for the work performed by nonemployees of the agency exceeds five
thousand dollars ($5,000). The contract and subcontract numbers and dollar
amounts shall be contained in a separate section of the document or written report.
(b) When multiple documents or written reports are the subject or product of the
contract, the disclosure section may also contain a statement indicating that the
total contract amount represents compensation for multiple documents or written
reports.”
For all Professional Services Agreement with a total dollar value in excess of $5,000, a signed
and completed copy of this form must be attached to all documents or completed reports
submitted to the City pursuant to the Scope of Work.
Does the dollar value of this Professional Services Agreement exceed $5,000?
Yes No
If yes, then the following information must be provided in compliance with
Government Code § 7550:
1. Dollar amount of Agreement/Contract: $ ____________
2. Dollar amount of Subcontract: $ ____________*
3. Does the total contract amount represent compensation for multiple
documents or written reports? Yes No
I have read the foregoing Code section and will comply with Government Code §7550.
Consultant Name
Signature, Title Date
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Exhibit C
REPORT AND BUDGET OBLIGATIONS
1. Format: Property Manager shall make available to City the budget and all reports
required in an electronic format reasonably acceptable to the City and compatible
with City’s computer system and software. The budget shall be submitted to the
City in a printed format and any report may be requested in a printed format. Printed
material shall be printed on recycled paper.
2. Distribution: No report, information, or other data given to or prepared or assembled
by Property Manager pursuant to this Agreement shall be made available to any
individual or organization by Property Manager without prior written approval of City
Manager or his/her designee.
3. Reports:
a. Monthly – On or before the fifteenth (15th) day of each calendar month,
Property Manager shall deliver to City, for each property included in the
Properties, the following reports, for the preceding month:
i. Remittance Report: A report showing rents collected and additions for
late fees. Report to be submitted with check for gross proceeds.
ii. Accounting: A cash flow operating statement, a funds from
operations statement (cash basis), an income statement (cash basis),
a balance sheet (cash basis), and a statement of cash flows. Such
statements shall present the results of operating each property as a
whole for the preceding calendar month and for the year-to-date.
iii. Rent Roll and Accounts Receivable Aging: Reports setting forth a
rent roll, presentation rent roll, tenant delinquencies, and the aging of
accounts payable.
iv. Receivable Aging: A list of all accounts receivable outstanding as of
the end of the preceding month, specifying the amount due, the nature
of the receivable, the person or entity from whom due, the age of the
receivable, and a summary of collection efforts.
v. Bank Reconciliation: A reconciliation for each of the City’s bank
accounts related to the Properties for the preceding month and year-
to-date.
vi. Trust Account Statements: Copies of bank statements for the Trust
Accounts held by Property Manager in favor of City.
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b. Annual: Within thirty (30) days after the end of each calendar year, Property
Manager shall deliver to City a cash flow operating statement, a funds from
operations statement (cash basis), an income statement (cash basis), a
balance sheet (cash basis), and a statement of cash flows, each for or as of
the end of the immediately preceding year. This report should have
attached, any and all correspondence, invoices, documentation of any kind,
and any other recorded communication in connection with Properties.
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EXHIBIT D
SCOPE OF SERVICES
Property Manager will provide the following services to the properties noted below, at the rates
outlined below:
PROPERTIES
1449 Walnut Canyon Road
1493 Walnut Canyon Road
488 McFadden Avenue
250 Los Angeles Avenue
50 Moorpark Avenue
SERVICE FEE
Property Start Up $295/unit
• Review of property status with City property manager
• Deposit turn over and trust account set up, per City and Department of Real Estate
requirements
• Send letters to current tenants introducing new property manager and requesting
walk-through to allow property manager to familiarize themselves with the property
Monthly Management Fees for Rented Properties 12% of monthly rent
• Manage lease agreements and lease renewals, including preparation of lease
documents, 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)
• Collect rents and notify City of any delinquencies
• Provide monthly and yearly financial reports as outlined in Exhibit C
• Provide response to calls from tenants seven (7) days a week
• Coordinate and pay for property maintenance, including landscape maintenance,
and repairs within budget authority outlined in Agreement
• Prepare annual property maintenance budget for approval by City Manager by
January 31 each year for the next fiscal year.
• Coordinate with City on those maintenance items outside the Property Manager’s
budget authority. All service providers used by Property Manager for services
under this contract including but not limited to landscapers, plumbers, electricians,
and general contractors shall have appropriate State licenses and a valid City of
Moorpark Business Registration.
• Conduct periodic walk-thru safety inspections every six (6) months and provide
inspection results to City
• When tenant vacates, conduct move-out inspection of property and make
recommendations regarding return of security deposit in accordance with current
landlord/tenant law.
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Management Fees for Vacant Properties $595 Fee applies only once upon each vacation of unit. Once the unit is rented, the monthly
management fee will apply.
• Advertise rental and post “For Lease” signs
• Meet potential renters for property tours
• Respond to calls from potential renters and provide rental applications
• Review applications, obtain credit reports, and screen potential tenants.
• Make recommendations about potential tenants based on best qualified, not first
application received
• Prepare Residential Lease Agreement using C.A.R. Forms and City provided
Addendums
• Obtain copies of renters insurance policies naming the City as additional insured
• Conduct pre-move in inspection and document property condition with checklists,
pictures and other appropriate means
Placement Fees to other Brokerage firms $500
• Paid to brokers if tenant is found via the local MLS
Additional Services (if needed) per separate price quote
• Participation in legal action i.e. tenant evictions, unlawful detainer actions etc
• Supervision of major repairs or renovation
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