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HomeMy WebLinkAboutAGENDA REPORT 2017 0607 CCSA REG ITEM 10F ITEM 10.F. CITY OF MOORPARK,CALIFORNIA City Council Meeting MOORPARK CITY COUNCIL �� 7-aoi7 ACTION: , AGENDA REPORT `+�� TO: Honorable City Council ej FROM: Jessica Sandifer, Program Managern DATE: May 25, 2017 (CC Meeting of 06/07/17) SUBJECT: Consider Agreement with Linda L. Toth dba Home Sweet Home Property Management for Property Management Services at City- owned Properties BACKGROUND/DISCUSSION The City owns a number of properties. When the improvements on the properties are in good condition, the City 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 staff in-house, however due to expanding workloads, a property manager was hired in July 2015 to manage the residential rental properties. The original contract for the property manager had a two- year term that is set to expire June 30, 2017. Currently the City has four residential properties that have been managed by the property manager. Staff is recommending renewing the contract with the current property manager, Linda L. Toth dba Home Sweet Home Property Management ("Home Sweet Home"). Home Sweet Home has performed well in the management of the residential rental properties. 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 the $1,000 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 rented. The fee is used by Home Sweet Home to advertise the property and process potential new tenants. Currently, the fee for management of the properties is 12% per month with a not-to-exceed cap of $850 per month. The new agreement allows for an increase of the management fee to 12% of the receipted rents. This would increase the monthly management fee to $978, an increase of $128/month and $1,536 for the year. The Agreement term is proposed for two-years and would start July 1, 2017. 196 Honorable City Council June 6, 2017 Page 2 FISCAL IMPACT As noted above, the monthly cost for the property manager to manage four properties is $978/month. The total estimated cost for the two year Agreement is $23,472. To account for potential costs associated with re-renting the properties should they become vacant during the term, staff is proposing that the Agreement have a not-to-exceed amount for the term of$25,000 to capture these potential additional costs. The funding for the property manager is coming directly from the rental payment amounts. The total gross rent from the four properties is estimated to be $97,800, less the property manager's fee of approximately $11,736, for the year, leaving net rental revenue to the City of $86,064. $67,584 is deposited in the City-wide Traffic Mitigation Fund (2002) and the remainder of $18,485 is deposited in the Housing Successor Agency Fund (2123). Funds are included in the FY 2017/18 budget for these services for the first year of the Agreement term. 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 1. Agreement 197 ATTACHMENT 1 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, AND 488 MCFADDEN AVENUE THIS AGREEMENT, is made and effective as of this day of , 2017, 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 residential 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 the date of execution to June 30, 2019, 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 property management services, ensuring that properties identified as 250 Los Angeles Avenue, 1449 Walnut Canyon Road, 1493 Walnut Canyon Road, and 488 McFadden 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 twenty-five thousand dollars ($25,000.00) for the term of the Agreement, without a written amendment to the Agreement executed by both 198 parties. Payment by City to Property Manager shall be in accordance with the provisions of this Agreement. 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, currently nine hundred seventy-eight dollars ($978) per month. 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) 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. Linda L. Toth dba Home Sweet Home Property Management Page 2 of 23 19 9 • 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. 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 (15t ) 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 orinvalidate 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. Linda L. Toth dba Home Sweet Home Property Management Page 3 of 23 200 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 two (2) business days before any such audit is conducted. Property Manager to provide the reports, as described in Exhibit C to the City. In addition, Property Manager shall provide City with a complete electronic copy of all financial and correspondence records annually (protected privacy information, including social security numbers, driver license numbers, and credit card numbers shall be redacted from all files submitted to the City). This electronic copy shall contain records from the period of January 1 through December 31, and shall be due to the City no later than January 31 of the year following the period covered. The final year of the Agreement Linda L. Toth dba Home Sweet Home Property Management Page 4 of 23 2 01 term, Property Manager will provide a report covering the period from January 1 through June 30, unless the Agreement is renewed or extended. 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 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 Linda L. Toth dba Home Sweet Home Property Management Page 5 of 23 2 0 2 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 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, or 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, shall perform all duties of City as landlord under each such lease in conformance with applicable State and Federal law, so that 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 insure full performance by tenants of all of their obligations, Property Manger shall Linda L. Toth dba Home Sweet Home Property Management Page 6 of 23 203 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"), 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 Linda L. Toth dba Home Sweet Home Property Management Page 7 of 23 2 0 4 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 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 Linda L. Toth dba Home Sweet Home Property Management Page 8 of 23 2 0 5 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 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 Linda L. Toth dba Home Sweet Home Property Management Page 9 of 23 2 0 6 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 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 step-mother, step-father, step- sister, step-brother, step-son, step-daughter, 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. Linda L. Toth dba Home Sweet Home Property Management Page 10 of 23 2 0 7 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 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. ARBITRATION Cases involving a dispute between City and Property Manager may be decided by an arbitrator if both sides agree in writing, with costs proportional to the judgment of the arbitrator. Linda L. Toth dba Home Sweet Home Property Management Page 11 of 23 2 0 8 30. 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. 31. 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. 32. 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. 33. 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. 34. 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. 35. 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. 36. 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. Linda L. Toth dba Home Sweet Home Property Management Page 12 of 23 2 0 9 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 Steven Kueny, City Manager Linda L. Toth Attest: Maureen Benson, City Clerk Linda L. Toth dba Home Sweet Home Property Management Page 13 of 23 210 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, error 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 Linda L. Toth dba Home Sweet Home Property Management Page 14 of 23 211 coverages. Coverage shall be provided on a "pay on behalf" basis, with defense costs payable in 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 but in no event less than $1,000,000 aggregate. 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 with an edition prior to 1992. 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. Linda L. Toth dba Home Sweet Home Property Management Page 15 of 23 212 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 whois 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 Linda L. Toth dba Home Sweet Home Property Management Page 16 of 23 213 in substantial additional cost to the Property Manager, the City will negotiate additional compensation proportional to the increased benefit to the City. 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. As 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. Linda L. Toth dba Home Sweet Home Property Management Page 17 of 23 214 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 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. • Linda L. Toth dba Home Sweet Home Property Management Page 18 of 23 215 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? 0 Yes 0 No I have read the foregoing Code section and will comply with Government Code §7550. Consultant Name Signature, Title Date Linda L. Toth dba Home Sweet Home Property Management Page 19 of 23 216 • 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. Thebudget 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. Linda L. Toth dba Home Sweet Home Property Management Page 20 of 23 217 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. 4. Annual Budget — On or before the 1st of December, Property Manager shall deliver to City an Annual Budget for the subsequent calendar year. The Annual Budget is subject to approval by the City Manager. The Annual Budget shall contain line items for all revenue and expenditures associated with each of the Properties, individually and entirely. Annual Budget line items shall include cash flow projections, operation expenses (including administrative, repairs, maintenance, utilities, and any other expense) and revenue (including rent income and itemizing any vacancies or other rent reductions, interest, application fees, if any, or any other revenue). A summary of the line items shall be included in the Annual Budget. Linda L. Toth dba Home Sweet Home Property Management Page 21 of 23 218 EXHIBIT D SCOPE OF SERVICES Property Manager will provide the following services at the rates outlined below: 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. 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. Linda L. Toth dba Home Sweet Home Property Management Page 22 of 23 219 • 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 Linda L. Toth dba Home Sweet Home Property Management Page 23 of 23 2 2 0