HomeMy WebLinkAboutAGMT - DMS Property Mgmt. Keller Williams (Professional Service Agreement)UNITED STATES PQSTA4 SERVICE
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City Clerk Robin Roberts
City of Seal Beach
211 Eighth Street pn
Seal Beach, CA 90740 v LD
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Delight Sittman
DMS Property Managements
P.O. Box 578
Los Alamitos, CA 90720
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Delight Sittman
DMS Property Management
P.O. Box 578
Los Alamitos, CA 90720
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PS Form 3e00, August 2006 (Reverse) PSN 7530 -02 -000 -9047
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1. Article Addressed t.- -- _ ... .
Delight Sittman
DMS Property Managemen
P.O. Box 578
Los Alamitos, CA 90720
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PS Form 3811, April 2015 PSN 7530 -02- 000 -9053 Domestic Return Receipt
UNITED STATES POSTAL SERVICE
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City Clerk Robin Roberts
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
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Delight,Sittman
DMS Property Management - Keller Williams
10900Los Alamitos Blvd.
Los AJ mitos, CA 90720
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UNITED STATES POSTAL SERVICE
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City Clerk Robin Roberts
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
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Sent by Certified Mail
August 2, 2016
Delight Sittman
DMS Property Management— Keller Williams
10900 Los Alamitos Blvd3191 D. Airport Loop
Los Alamitos, CA 90720
Re: TERMINATION OF PROFESSIONAL SERVICES AGREEMENT (FOR
PROPERTY MANAGEMENT)
Dear Delight Sittman:
Pursuant to that certain Professional Services Agreement ( "Agreement ") dated August 12, 2014,
the City of Seal Beach ("City ") engaged DMS Property Management - Keller Williams, for
property management services ( "Services").
Section 2.1 of the Agreement provides that the City may terminate the Agreement, without
cause, or by DMS Property Management — Keller Williams based on reasonable cause, upon
giving the other party written notice thereof not less than 30 days prior to the date of termination.
At their July 25, 2016 regular meeting, the City Council of the City of Seal Beach authorized
execution of an agreement for the retention of Westridge Commercial, Inc. to provide property
management services. This letter constitutes the City's written notice of termination of the
Agreement with DMS Property Management — Keller Williams, with an effective termination
date of September 3, 2016, at 12:00 a.m.
The City appreciates the services provided by DMS Property Management — Keller Williams and
looks forward to working with you during this transition period. In accordance with Section 4.2
of the Agreement, Director of Finance /City Treasurer Vikki Beatley. will be contacting you
within the next week to discuss the plans for this transition including inspection and return of all
documents and other property of the City pertaining to this Agreement.
Thank you for your services, and good luck in your future endeavors.
Sincerely,
)iR
City Manager
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Certified Mail Provides:
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valuables, please consider Insured or Registered Mail
• For an additional fee, a Return Receipt may be requested to provide proof of
delivery. To obtain Return Receipt service, please complete and attach a Return
Receipt (PS Form 3811) to the article and add applicable postage to cover the
fee. Endorse mailpiece'Return Receipt Requested'. To receive a fee waiver for
a duplicate return receipt, a USPSO postmark on your Certified Mail receipt is
requned.
• For an additional fee, delivery may be restricted to the addressee or
addressee's authorized agent. Advise the clerk or mark the mailpiece with the "
endorsement 'Restricted Delivery.
• If a postmark on the Certified Mail receipt is desired, please present the arti-
cle at the post office for postmarking. If a postmark on the Certified Mail
receipt is not needed, detach and affix label with postage and mail.
IMPORTANT: Save this receipt and present it when making an inquiry. -
PS Form 3800, August 2006 (Reverse) PSN ]530 -0 &000 -904]
• Complete items 1, 2, and 3.
• Print your name and address on the reverse
so that we can return the card to you.
• Attach this card to the back of the mailpiece,
or on the front if space permits.
X
I
0 !Agent
of Delivery
n- Ic delivery address different from Item 17 LJ Ya:
YES, enter delivery address below: p No
Delight Sittman
DMS Property Management - Keller Williams
10900 Los Alamitos Blvd. 3191 D. Airport Loop
'Los Alamitos, CA 90720
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UNITED STATES POSTAL SERVICE
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• Sender: Please print your name, address, and ZIPW in this box*
City Clerk Robin Roberts
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
III@YIIIIVIVflV��IIPaN
9590 9403 016? 5120 8928
PROPERTY MANAGEMENT
SERVICES AGREEMENT
between
City of Seal Beach
211 8th Street
Seal Beach. CA 90740
0
DMS Property Management — Keller Williams
10900 Los Alamitos Blvd, Los Alamitos, CA 90720
562 - 626.8600
This Professional Service Agreement ( "the Agreement') is made as of August 12, 2014
(the "Effective Date "), by and between DMS Property Management — Keller Willianms
( "Consultant')and the City of Seal Beach ( "City "), a California charter city, (collectively,
"the Parties ").
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RECITALS
A. City desires certain property management services.
B. Consultant represents that it is qualified and able to provide City with such
services.
NOW THEREFORE, in consideration of the Parties' performance of the
promises, covenants, and conditions stated herein, the Parties hereto agree as follows:
AGREEMENT
1.0 Scope of Services
1.1. Consultant shall provide those services ( "Services ") set forth in the
attached Exhibit A, which is hereby incorporated by this reference. To the extent that
there is any conflict between Exhibit A and this Agreement, this Agreement shall control.
1.2. Consultant must do everything reasonably necessary for the proper
management of City property. Consultant must timely respond to all tenant requests
and negotiate with tenants on behalf of City. Consultant must use all reasonable efforts
to assure tenant compliance with the terms of their leases; including, but not limited to,
periodically inspecting the properties, supervising property maintenance and repairs,
and arranging for such improvements, alterations, and repairs as may be required by
City. No single improvement, alteration, or repair costing more than $300 shall be made
by Consultant without City's prior authorization, with the exception of emergencies
requiring immediate repair or alteration when City is not available for consultation, in
which case, Consultant shall take such actions as are reasonably needed to secure and
maintain City property.
1.3. Consultant shall perform all Services under this Agreement in accordance
with the standard of care generally exercised by like professionals under similar
circumstances and in a manner reasonably satisfactory to City.
1.4. In performing this Agreement, Consultant shall comply with all applicable
provisions of federal, state, and local law.
1.5. Consultant is not authorized to practice law. Where legal assistance is
necessary to Consultant's performance of this Agreement, including but not limited to
enforcing the collection of rent or eviction of a tenant, Consultant must obtain legal
assistance through the City Attorney. Any legal action shall be undertaken in the City's
name only. City shall bear all legal expenses, including the cost of counsel, except as
otherwise provided in this Agreement.
1.6. Consultant must deposit monies collected by Consultant on behalf of City
into a building operation account that is separate and apart from Consultant's funds in a
state or national bank wherein deposits are insured by an agency of the Federal
Government. Consultant must remit to City at the address specified in this Agreement
2of10
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or as City may otherwise direct in writing the net amount of all funds collected for City's
account, which shall be the gross collections from City property less all authorized
expenses, operating, funds, and reserves. Consultant must also deliver to City a
statement showing all receipts and disbursements for the month reported, together with
supporting documentation.
1.7. Consultant will not be compensated for any work performed not specified
in the Scope of Services unless the City authorizes such work in advance and in writing.
The City Manager may authorize payment for such work up to a cumulative maximum of
$10,000. Payment for additional work in excess of $10,000 requires prior City Council
authorization.
2.0 Term & Termination
2.1. This term of this Agreement shall commence as of the Effective Date and
shall continue until terminated as provided by this Agreement.
2.1. This Agreement may be terminated by City, without cause, or by
Consultant based on reasonable cause, upon giving the other party written notice
thereof not less than 30 days prior to the date of termination.
2.2. This Agreement may be terminated by City upon 10 days' notice to
Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement
of comprehensive general liability insurance as required by this Agreement at least 20
days before the expiration date of the previous policy.
3.0 Consultant's Compensation
City will pay Consultant in accordance with the fee schedule set forth in Exhibit B
for the Services. Any additional work authorized by the City pursuant to Section 1.7 will
be compensated in accordance with the fee schedule set forth in Exhibit B.
4.0 Method of Payment
4.1. Consultant shall submit to City monthly invoices for all services rendered
pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end
of the month during which the services were rendered and shall describe in detail the
services rendered during the period, the days worked, number of hours worked, the
hourly rates charged, and the services performed for each day in the period. City will
pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold
any applicable federal or state payroll and other required taxes, or other authorized
deductions from payments made to Consultant.
4.2. Upon 24 -hour notice from City, Consultant shall allow City or City's agents
or representatives to inspect at Consultant's offices during reasonable business hours
all records, invoices, time cards, cost control sheets and other records maintained by
Consultant in connection with this Agreement. City's rights under this Section 4.2 shall
survive for two years following the termination of this Agreement.
3of10
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5.0 Party Representatives
5.1. The City Manager is the City's representative for purposes of this
Agreement.
5.2. Delight Sittman is the Consultant's primary representative for purposes of
this Agreement.
6.0 Notices
6.1. All notices permitted or required under this Agreement shall be deemed
made when personally delivered or when mailed 48 hours after deposit in the United
States Mail, first class postage prepaid and addressed to the party at the following
addresses:
To City: City of Seal Beach
211 -8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant: DMS Property Management — Keller Williams
10900 Los Alamitos Blvd.
Los Alamitos, CA 90720
Attn: Delight Sittman
6.2. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
7.0 Independent Contractor
7.1. Consultant is an independent contractor and not an employee of the City.
All services provided pursuant to this Agreement shall be performed by Consultant or
under its supervision. Consultant will determine the means, methods, and details of
performing the services. Any additional personnel performing services under this
Agreement on behalf of Consultant shall also not be employees of City and shall at all
times be under Consultant's exclusive direction and control. Consultant shall pay all
wages, salaries, and other amounts due such personnel in connection with their
performance of services under this Agreement and as required by law. Consultant shall
be responsible for all reports and obligations respecting such additional personnel,
including, but not limited to: social security taxes, income tax withholding,
unemployment insurance, disability insurance, and workers' compensation insurance.
7.2. Consultant shall indemnify and hold harmless City and its elected officials,
officers, employees, servants, designated volunteers, and agents serving as
independent contractors in the role of City officials, from any and all liability, damages,
claims, costs, and expenses of any nature to the extent arising from Consultant's
personnel practices. City shall have the right to offset against the amount of any fees
due to Consultant under this Agreement any amount due to City from Consultant as a
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result of Consultant's failure to promptly pay to City any reimbursement or
indemnification arising under this Section.
8.0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written
approval of the City. Consultant is fully responsible to City for the performance of any
and all subcontractors.
9.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by
assignment or novation, without the prior written consent of City. Any purported
assignment without such consent shall be void and without effect.
10.0 Insurance
10.1. Consultant shall not commence work under this Agreement until it has
provided evidence satisfactory to the City that Consultant has secured all insurance
required under this Section. Consultant shall furnish City with original certificates of
insurance and endorsements effecting coverage required by this Agreement on forms
satisfactory to the City. The certificates and endorsements for each insurance policy
shall be signed by a person authorized by that insurer to bind coverage on its behalf,
and shall be on forms provided by the City if requested. All certificates and
endorsements shall be received and approved by the City before work commences.
The City reserves the right to require complete, certified copies of all required insurance
policies, at any time.
10.2. Consultant shall, at its expense, procure and maintain for the duration of
the Agreement, insurance against claims for injuries to persons or damages to property
that may arise from or in connection with the performance of this Agreement. Insurance
is to be placed with insurers with a current A.M. Best's rating no less than A:VIII,
licensed to do business in California, and satisfactory to the City. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001);
(2) Automobile Liability: Insurance Services Office Business Auto Coverage form
number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional
Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000
per occurrence for bodily injury, personal injury and property damage and if Commercial
General Liability Insurance or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to this Agreement/location or the
general aggregate limit shall be twice the required occurrence limit; (2) Automobile
Liability: $1,000,000 per accident for bodily injury and property damage; and
(3) Professional Liability: $1,000,000 per claim /aggregate.
10.3. The insurance policies shall contain the following provisions, or Consultant
shall provide endorsements on forms supplied or approved by the City to state:
(1) coverage shall not be suspended, voided, reduced or canceled except after 30 days
5of10
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prior written notice by certified mail, return receipt requested, has been given to the City;
(2) any failure to comply with reporting or other provisions of the policies, including
breaches of warranties, shall not affect coverage provided to the City, its directors,
officials, officers, (3) coverage shall be primary insurance as respects the City, its
directors, officials, officers, employees, agents and volunteers, or if excess, shall stand
in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage and that any insurance or self- insurance maintained by the City, its directors,
officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it; (4) for general liability
insurance, that the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the services or
operations performed by or on behalf of the Consultant, including materials, parts or
equipment furnished in connection with such work; and (5) for automobile liability, that
the City, its directors, officials, officers, employees, agents and volunteers shall be
covered as additional insureds with respect to the ownership, operation, maintenance,
use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible.
10.4. All insurance required by this Section shall contain standard separation of
insureds provisions and shall not contain any special limitations on the scope of
protection afforded to the City, its directors, officials, officers, employees, agents, and
volunteers.
10.5. Any deductibles or self- insured retentions shall be declared to and
approved by the City. Consultant guarantees that, at the option of the City, either:
(1) the insurer shall reduce or eliminate such deductibles or self- insured retentions as
respects the City, its directors, officials, officers, employees, agents, and volunteers; or
(2) the Consultant shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses.
11.0 Indemnification, Hold Harmless, and Duty to Defend
Consultant shall defend, indemnify, and hold the City, its officials, officers,
employees, volunteers and agents serving as independent contractors in the role of city
officials (collectively "Indemnitees ") free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or
equity, to property or persons, including wrongful death, in any manner arising out of or
incident to any acts or omissions of Consultant, its employees, or its agents in
connection with the performance of this Agreement, including without limitation the
payment of all consequential damages and attorneys' fees and other related costs and
expenses, except for such loss or damage arising from the sole negligence or willful
misconduct of the City. With respect to any and all such aforesaid suits, actions, or
other legal proceedings of every kind that may be brought or instituted against
Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense,
and risk, and shall pay and satisfy any judgment, award, or decree that may be
rendered against Indemnitees. Consultant shall reimburse City and its directors,
officials, officers, employees, agents and /or volunteers, for any and all legal expenses
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and costs incurred by each of them in connection therewith or in enforcing the indemnity
herein provided. Consultant's obligation to indemnify shall not be restricted to insurance
proceeds, if any, received by Consultant, the City, its directors, officials, officers,
employees, agents or volunteers. All duties of Consultant under this Section shall
survive termination of this Agreement.
12.0 Equal Opportunity
Consultant affirmatively represents that it is an equal opportunity employer.
Consultant shall not discriminate against any subcontractor, employee, or applicant for
employment because of race, religion, color, national origin, handicap, ancestry, sex,
sexual orientation, or age. Such non - discrimination includes, but is not limited to, all
activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff, or termination.
13.0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions
of Section 3700 of the California Labor Code that require every employer to be insured
against liability for Workers' Compensation or to undertake self- insurance in accordance
with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
14.0 Entire Agreement
This Agreement contains the entire agreement of the parties with respect to the
subject matter hereof, and supersedes all prior negotiations, understandings, or
agreements. This Agreement may only be modified by a writing signed by both parties.
15.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not
void or affect the validity of the other provisions of this Agreement.
16.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws
of the State of California.
17.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party
as a result of this Agreement.
18.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach,
whether of the same or other covenant or condition. No waiver, benefit, privilege, or
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service voluntarily given or performed by a party shall give the other party any
contractual rights by custom, estoppel, or otherwise.
19.0 Prohibited Interests; Conflict of Interest
19.1. Consultant covenants as follows:
19.1.1. Consultant presently has no interest and shall not acquire
any interest, direct or indirect, which may be affected by the Services, or which would
conflict in any manner with the performance of the Services. In performance of this
Agreement, no person having any such interest shall be employed by it.
19.1.2. To its information and belief, Consultant has neither
contracted with nor is performing any services directly or indirectly for any developer,
property owner, firm, or partnership owning property in the City during the term of this
Agreement. Notwithstanding the foregoing, City acknowledges that Consultant
manages and operates on Marina Drive in the City of Long Beach, the following
properties — Alamitos Bay Landing, Alamitos Bay Marine Center, Crab Pot Restaurant,
and Farmers Market —and that neither the continued management nor operation of
these properties violates the provisions of this paragraph.
19.2. Consultant shall avoid the appearance of having any interest that would
conflict in any manner with the performance of the Services. Consultant shall not
accept any employment or representation during the term of this Agreement which is or
may likely make Consultant "financially interested" (as provided in California
Government Code § §1090 and 87100) in any decision made by City on any matter in
connection with which Consultant has been retained.
19.3. Consultant warrants and maintains that it has not employed or retained
any person or entity, other than a bona fide employee working exclusively for
Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to
pay any person or entity, other than a bona fide employee working exclusively for
Consultant, any fee, commission, gift, percentage, or any other consideration contingent
upon the execution of this Agreement. Upon any breach or violation of this warranty,
City shall have the right, at its sole and absolute discretion, to terminate this Agreement
without further liability, or to deduct from any sums payable to Consultant hereunder the
full amount or value of any such fee, commission, percentage, or gift.
19.4. Consultant warrants and maintains that it has no knowledge that any
officer or employee of City has any interest, whether contractual, noncontractual,
financial, proprietary, or otherwise, in this transaction or in the business of Consultant,
and that if any such interest comes to the knowledge of Consultant at any time during
the term of this Agreement, Consultant shall immediately make a complete, written
disclosure of such interest to City, even if such interest would not be deemed a
prohibited "conflict of interest' under applicable laws as described in this subsection.
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20.0 Treatment of Information and Records
20.1. Consultant must maintain as confidential rand not disclose to any third
party any and all information it gains in performance of this Agreement unless otherwise
permitted or directed by City in writing. Consultant, its officers, employees, agents, and
subcontractors must not voluntarily provide declarations, letters of support, testimony at
depositions, responses to interrogatories, or other information concerning City property
in any way to a party whom Consultant knows or reasonably should know is or may be
adverse to City in any current or subsequent litigation. Consultant shall not incur any
liability under this paragraph for materials it submits that is later released by City.
Consultant shall not incur any liability for statements it makes at any public meeting, or
for the release of any document for which prior City's prior written authorization was
obtained.
20.2. If Consultant or any of its officers, employees, consultants, or
subcontractors voluntarily provides or discloses any information in violation of this
Agreement, Consultant must reimburse and indemnify City for any damages caused by
Consultant's violation, including without limitation all attorneys' fees incurred by the City
in connection therewith.
20.3. Consultant must promptly notify City if Consultant, its officers, employees,
agents, or subcontractors, or any of these are served with any summons, complaint,
subpoena, notice of deposition, request for documents, interrogatories, request for
admissions, or any other discovery requests from any party regarding this Agreement or
the Services. City retains the right, but not the obligation, to represent Consultant
and /or be present at any deposition, hearing, or similar proceeding. Consultant must
cooperate fully with City and provide City with a reasonable opportunity to review any
response Consultant makes to any discovery requests. City's right to review any such
response shall not be construed to give City the right or obligation to control, direct, or
rewrite said response.
20.4. City warrants that Consultant will have fully met the requirements of this
Section by obtaining City's written approval prior to provided documents, testimony, or
declarations; consulting with City before responding to a Subpoena or court order; in the
case of depositions upon providing City notice of same, or providing City opportunity to
review discovery responses prior to submission. For purposes of this Section, a written
authorization from City shall include a "faxed" letter or e-mail from the City Manager or
City Attorney.
21.0 Attorneys' Fees
If either party commences any legal, administrative, or other action against the
other party arising out of or in connection with this Agreement, the prevailing party in
such action shall be entitled to have and recover from the losing party all of its
attorneys' fees and other costs incurred in connection therewith.
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22.0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the
Agreement as if set forth in full herein. In the event of any material discrepancy
between the terms of any exhibit so incorporated and the terms of this Agreement, the
terms of this Agreement shall control.
23.0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or
she is duly authorized to execute this Agreement on behalf of said Party and that by his
or her execution, the Consultant is formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the Parties hereto, through their respective authorized
representatives have executed this Agreement as of the date and year first above
written.
CITY OF SEAL BEACH
,1wn
U Jill R. lngrarr�j
City Manager
Attest:
By:
Linda evine
City Clerk
Approved as to F
M
L. Flower
By: 0 i
Deli ht Sittman
Keller Williams - Broker
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EXHIBIT A
SCOPE OF SERVICES
1. NATURE OF SERVICES REQUIRED
a. General: The property management firm has been selected to perform
the following tasks:
Lease and lease renewal. Negotiations with the goal of maximizing
revenues to the City
ii. Collect and remit rent to the City
iii. Provide services to address delinquencies and evictions
iv. Actively advertise and show vacant space
V. Manage compliance with lease agreements
vi. Prepare monthly activity and financial statements
vii. Provide primary contact for tenant needs
viii. Submit recommendations to the City on potential improvements to
improve revenues from City owned properties
b. Special Services: At the discretion of the City, the property management
firm may be requested to undertake additional work outside of those tasks
identified in Section a.
2. DESCRIPTION OF THE PROPERTY /LEASES. Consultant shall provide
property management services for the property owned by City at 4197 Ironwood
Avenue, Seal Beach, CA 90740.
3. ASSISTANCE TO BE PROVIDED TO THE PROPERTY MANAGER. Key
contact person. The City will assign a key contact person who will work with the
property manager on issues that arise related to managing the properties.
Exhibit A
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EXHIBIT B
SCHEDULE OF REAL ESTATE COMMISSIONS
The following is a schedule of real estate commissions for transactions in which
Consultant participates.
Property Management Fee 6% of monthly gross rents
2. Lease Commissions
a. $500 to reciprocating broker through MLS if needed.
3. Evictions — Owners Cost
Exhibit B
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