Loading...
HomeMy WebLinkAboutItem 11f - Short-Term Rental Monitoring Services DATE: November 17, 2020 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Alana Bautista, Management Aide SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH HARMARI BY LTAS TECHNOLOGIES INC., FOR SHORT-TERM RENTAL MONITORING SERVICES IN AN AMOUNT NOT TO EXCEED $16,100, WITH THE OPTION OF TWO, ONE-YEAR RENEWALS Recommendation: Approve SUMMARY The City is seeking short-term rental monitoring services to assist in identifying properties that are being used as short-term rentals in the City. Proposals were received by three (3) short-term rental monitoring companies. It is recommended that the City Council approve a Professional Services Agreement with Harmari by LTAS Technologies Inc. for short-term rental monitoring services. BACKGROUND The City of Arcadia implemented short-term rental regulations in September 2017. Ordinance No. 2348 prohibits short-term rentals, home sharing, and the advertisements of these uses on websites such as Airbnb, VRBO, and HomeAway that host these types of rentals. Under Ordinance No. 2348, a short-term rental is defined as a use in which a dwelling, or portion thereof, is rented for tourist or transient purposes for compensation for a period of less than 28 consecutive calendar days, and the renter is given exclusive use of the dwelling. The definition includes any arrangement in which the rental period is less than 28 consecutive days or can be reduced below 28 consecutive days, or in which the dwelling is rented multiple times within 28 consecutive days. The purpose of the Ordinance is to preserve the residential character and quality of life in the community. Since the adoption of Ordinance No. 2348, the Development Services Department has monitored and enforced short-term rental issues in the City. Despite short-term rental use of properties not being allowed in the City, the number of homes available for short-term rentals has fluctuated but generally increased over the past three years since the adoption of the regulations. In 2017, approximately 140 rental Professional Services Agreement with Harmari November 17, 2020 Page 2 of 4 listings were identified in the City. Currently, there are approximately 210 listings. It should be noted that these numbers often include longer term rentals (which are compliant) as well as partial listings (such as a single room in a dwelling unit). Conversely, these numbers do not take into consideration ALL rental platforms that are available to Arcadia residents. Therefore, there has not been a completely accurate picture of the depth of the issue. Recently, the City has also seen a rise in complaints from neighbors regarding short- term rentals. This is in large part due to COVID-19, and the fact that many individuals are using their properties in a unique manner, renters are more frequently renting homes rather than getting hotel rooms, and, of course, because more people are in their homes and are noticing what is happening around their neighborhoods. The most common issues mentioned are excessive noise, increased traffic, and parking problems. The City has dealt with properties being used for parties that extend into the late hours of the night or being rented commercially for events such as illegal filming and wedding receptions. These activities have been disruptive to the surrounding neighborhoods. Finally, there has even been a shooting attributed to a home being used as a short-term rental. DISCUSSION Currently, short-term rentals are researched and identified in-house by Development Services Department staff. When a short-term rental complaint is received, it is then investigated by researching the address on various short-term rental platforms as well as Code Services inspections. Once a short-term rental advertisement is confirmed for a specific property, notices and citations may be issued to the property owner. This process has worked well over the years in eliminating the most obvious offenders, but it is labor intensive and not comprehensive. The biggest challenge in enforcing short-term rentals in the City has been identifying the addresses of these properties. There are not a large number of neighbor complaints, and not all short-term rental complaints can be verified through in-house research. Many of the short-term rental platforms do not disclose the address of their listings. If Development Services Department staff had access to a database of short-term rental address listings in the City, much more time could be dedicated to enforcing this issue proactively. As a result, the decision was made to seek additional resources to more comprehensively address this issue. The Development Services Department recently received proposals from three (3) companies that provide short-term rental monitoring services, as follows: Company Pricing and Service Details AllTheRoom Analytics $2,000 for first 200 listings $10 per listing after 200 listing Harmari by LTAS Technologies Inc. $16,100 for the first year $9,000 for subsequent years Host Compliance by Granicus $13,680 annually Professional Services Agreement with Harmari November 17, 2020 Page 3 of 4 The proposals were reviewed by and evaluated based on thoroughness and understanding of the scope of services requested, related experience, references, proposal quality, and overall cost. The three companies all provide short-term rental address identification as part of their service features. An important feature that is unique to the City of Arcadia and would require a higher level of customization in services would be the access to information from Chinese-language short-term rental platforms. The only company that can provide this additional feature to their services is Harmari. Although AllTheRoom Analytics was the least expensive of the three firms, they lack experience in providing this type of service to municipalities and do not provide the depth of services needed, such as access to consistently updated data. Short-term rental listing data would only be provided on a quarterly basis, and this would not meet the City’s needs nor be useful in proactive enforcement. Host Compliance by Granicus is arguably the largest and most commonly used firm locally; however, they are not able to provide Chinese-language short-term rental platforms as part of their services. This is viewed as a key component of the work for the City. Additionally, if the City were to utilize short-term rental monitoring services over the course of three years (a likely scenario), the cost of hiring Host Compliance would be $41,040 as compared to $34,100 with Harmari. Harmari by LTAS Technologies Inc. was incorporated in Ontario, Canada in 2011. Hamari covers 60 different short-term rental websites and executes listing data collection four (4) times per week, once in each of the four-time intervals: weekday, weeknight, weekend-day, and weekend-night. As part of their proposal, they will be able to customize settings to include two frequently used Chinese short-term rental websites, 58.com and Chineseinla.com. Harmari’s services will include a user-friendly web portal customized for the City of Arcadia where staff can access the database, which will include interactive maps and all short-term rental advertisement listing in the City. Use of a monitoring service such as Harmari will focus enforcement efforts, and will provide the City with consistent, real-time information of the number of listings within the City and which are truly illegal and problematic. Harmari provides additional enforcement services such as the generation and issuance of non-compliance letters and an enforcement hotline where complaints are taken in and tracked. These services would be an additional $10,400 for the first year, and $7,500 per additional year. It is not anticipated that these additional services are needed as this work can be completed in house. It is recommended that the City Council approved a Professional Services Agreement with Harmari for one year, with the option of two additional one- year periods. ENVIRONMENTAL ANALYSIS The proposed Professional Services Agreement does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it Professional Services Agreement with Harmari November 17, 2020 Page 4 of 4 will have no impact on the environment. Thus, this matter is exempt under CEQA per Section 15061(b)(3). FISCAL IMPACT The short-term rental monitoring services to the City is not to exceed $16,100 in the first year. Should additional years of service be desired, the contract allows two, optional one-year extensions in the amount of $9,000 per year. If the City Council approves the contract, the Development Services Department would have the discretion to continue the contract at these terms. Funds from the City’s COVID-19 relief fund will be utilized for this project in the first year of the program, since the issue of short-term rentals has increased significantly during, and as a result of, the pandemic. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is therefore exempt under the California Environmental Quality Act (“CEQA”); and approve, and authorize the City Manager to execute, a Professional Services Agreement with Harmari by LTAS Technologies Inc. for short-term rental monitoring services in the an amount not to exceed $16,100; with the option of two, one-year renewals. Attachment: Professional Services Agreement 1 24347.00006\30493020.2 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT This Agreement is made and entered into as of ________________, 20____ by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91066 (“City”), and LTAS Technologies Inc. a limited liability company with its principal place of business at 505 Consumers Road, Unit 314, Toronto, Ontario, M2J 4V8 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: Short-Term Rental Monitoring Services (hereinafter referred to as “the Project”). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $16,100 for the short-term rental monitoring service. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. There is an option of two, one-year renewals to the Professional Services Agreement contract in the amount of $9,000 per year. Payment shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on an annual basis. 3. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a 2 24347.00006\30493020.2 statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 4. Maintenance of Records. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 5. Term. The term of this Agreement shall be from [Insert start date] to [Insert end date], unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work. 6. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 7. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 3 24347.00006\30493020.2 8. Standard of Care Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 9. Assignment and Subconsultant Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 10. Independent Contractor Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Agreement (8) Property Damage 4 24347.00006\30493020.2 (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c. Workers’ Compensation/Employer’s Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. 5 24347.00006\30493020.2 d. Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/$2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant 6 24347.00006\30493020.2 shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. h. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. i. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. 7 24347.00006\30493020.2 (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 12. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. b. To the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s obligations under the above indemnity shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, but shall not otherwise be reduced. If Consultant’s obligations to defend, indemnify, and/or hold harmless arise out of Consultant’s performance of “design professional services” (as that term is defined under Civil Code section 2782.8), then upon Consultant obtaining a final adjudication that liability under a claim is caused by the comparative active negligence or willful misconduct of the City, Consultant’s obligations shall be reduced in proportion to the established comparative liability of the City and shall not exceed the Consultant’s proportionate percentage of fault. 8 24347.00006\30493020.2 13. California Labor Code Requirements. a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). b. If the services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor. 14. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 9 24347.00006\30493020.2 15. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Los Angeles, State of California. 16 Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 17 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 18. Organization Consultant shall assign Allen Atamer, as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 19. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 20. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: 10 24347.00006\30493020.2 CITY: City of Arcadia 240 West Huntington Drive Arcadia, CA 91066 Attn: Jason Kruckeberg, Assistant City Manager/Development Services Director CONSULTANT: LTAS Technologies Inc. 505 Consumers Road, Unit 314, Toronto, Ontario, M2J 4V8 Attn: Allen Atamer, Chief Executive Officer and shall be effective upon receipt thereof. 22. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 24. Entire Agreement This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 25. Severability The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal. 26. Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 11 24347.00006\30493020.2 27. Non-Waiver None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 28. Time of Essence Time is of the essence for each and every provision of this Agreement. 29. City’s Right to Employ Other Consultants City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 30. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. [SIGNATURES ON FOLLOWING PAGE] 12 24347.00006\30493020.2 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND LTAS TECHNOLOGIES INC. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA LTAS TECHNOLOGIES INC. By: By: Dominic Lazzaretto Signature City Manager Date: Its: ATTEST: Printed Name By: Date: City Clerk APPROVED AS TO FORM By: Signature By: Its: Stephen P. Deitsch City Attorney Printed Name 13 24347.00006\30493020.2 EXHIBIT A Scope of Services The consultant shall provide short-term rental monitoring services in the form of short-term rental address identification with custom crawling and monitoring. Scope Item Scope Details Address Identification • Non-crowdsourced, non-Amazon MTurk analysts • At least 2 overlapping supporting evidence screenshots provided up front without special inquiry and spoliation of evidence • Accuracy guarantee of 95% for houses, 75% for condos/apartments • Web portal showing interactive maps • Keyword search on ID, address, name, title, URL • Reports available in 10 standard templates, 9 filters • List view and querying 14 24347.00006\30493020.2 EXHIBIT B Schedule of Charges/Payments Total not to exceed $16,100 for the first year of short-term rental monitoring services. Option of two, one-year renewals in the amount not to exceed $9,000 per year. Consultant shall be paid for services rendered upon receipt of invoice from the Contractor. The City will pay Contractor for services in accordance with this agreement. 15 24347.00006\30493020.2 16 24347.00006\30493020.2 EXHIBIT C Activity Schedule The scope of services is to be provided throughout the term of the contract.