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Contract 2023-082ADocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF AGREEMENT No. 2023-082 REAL ESTATE BROKER SERVICES THIS AGREEMENT, is made and entered into this Wednesday, August 9, 2023, by and between the CITY OF CLERMONT, FLORIDA, a municipal corporation under the laws of the State of Florida whose address is: 685 W. Montrose Street, Clermont, Florida, (hereinafter referred to as "CITY"), and HORIZON REAL ESTATE SOLUTIONS, LLC., whose address is: 3483 N. Hiatus Road, Sunrise, FL 33351, (hereinafter referred to as "CONTRACTOR"). WHEREAS, the City of Clermont issued RFP 23-076 titled Real Estate Broker Services; WHEREAS, CONTRACTOR submitted its response dated June 15, 2023, to RFP 23-076; WHEREAS, CITY desired to award a contract to CONTRACTOR in accordance with the terms and conditions of RFP 23-076 and CONTRACTOR's response thereto; WITNESSETH: That the parties hereto, for the consideration hereinafter set forth, mutually agree as follows: SCOPE OF WORK The CONTRACTOR shall furnish on -call real estate broker services as described in CITY's RFP 23-076 and CONTRACTOR's June 15, 2023 response thereto, which are expressly incorporated herein and made a part of the Agreement Documents hereto and shall do everything required by this Agreement and the Agreement Documents. Provided, however, that nothing herein shall require CITY to purchase or acquire any items or services from CONTRACTOR. 2. THE CONTRACT SUM CITY shall pay CONTRACTOR, for the faithful performance of the Agreement as set forth in the Agreement Documents and the Unit Price Schedule an amount in accordance with the compensation schedule set forth in Exhibit "A", attached hereto and incorporated herein. 3. PROVISION OF SERVICES AND COMPLETION OF WORK A. The CONTRACTOR shall only provide the CITY with on -call real estate broker services upon receipt of an authorized order from CITY and shall provide the requested items in the timeframe and as set forth in RFP 23-076 or in the specific purchase order submitted by CITY. Nothing herein shall obligate CITY to purchase any specific amount of product from CONTRACTOR or create an exclusive purchase agreement between CITY and CONTRACTOR. CITY shall not be obligated or required to pay for any items received until such time as CITY has accepted the items in accordance with the order provided to CONTRACTOR. B. CONTRACTOR, upon receipt of a purchase order hereunder, shall immediately notify CITY if it has an issue or question related to the fulfillment of the order or whether there DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Term Agreement RFP 23-076 Real Estate Broker Services will be any delay in providing the items requested. Failure of CONTRACTOR to so notify CITY will preclude CONTRACTOR from seeking payment of any kind for any items that were delayed in delivery. Upon receipt of notification of the delay, CITY may at its sole option cancel the order and seek the items from any available source. C. It is expressly understood and agreed that the passing, approval, and/or acceptance of any services herein by CITY or by any agent or representative as in compliance with the terms of this Contract shall not operate as a waiver by the CITY of strict compliance with the terms of this Contract and the CITY may require the CONTRACTOR replace the accepted services so as to comply with the warranties and specifications hereof. D. COMPANY specifically acknowledges that this Contract does not bind or obligate CITY to purchase any minimum quantity of product during the term hereof. 4. TERM AND TERMINATION A. This Agreement is to become effective upon execution by both parties and shall remain in effect for a period of three (3) years thereafter, unless terminated or renewed as provided for herein. B. Notwithstanding any other provision of this Agreement, CITY may, upon written notice to CONTRACTOR, terminate this Agreement: a) without cause and for CITY's convenience upon thirty (30) days written notice to CONTRACTOR; b) if CONTRACTOR is adjudged to be bankrupt; c) if CONTRACTOR makes a general assignment for the benefit of its creditors; d) CONTRACTOR fails to comply with any of the conditions of provisions of this Agreement; or e) CONTRACTOR is experiencing a labor dispute, which threatens to have a substantial, adverse impact upon the performance of this Agreement, without prejudice to any other right or remedy CITY may have under this Agreement. In the event of such termination, CITY shall be liable only for the payment of all unpaid charges, determined in accordance with the provisions of this Agreement, for work, properly performed and accepted prior to the effective date of termination. C. Upon mutual Agreement of the parties, this Agreement may be renewed for three (3) additional one-year terms. Sixty (60) days prior to completion of each extended term of this Agreement, CONTRACTOR may request and the City may consider an adjustment to price based on changes in the Producer Price Index (PPI). 5. PAYMENTS In accordance with the provisions fully set forth in the Contract Documents, CONTRACTOR shall submit an invoice to CITY upon completion of the services and delivery of products to CITY as set forth in the applicable purchase order. CITY shall make payment to the CONTRACTOR for 1 DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Term Agreement RFP 23-076 Real Estate Broker Services all accepted deliveries and undisputed products delivered and services provided, within thirty (30) calendar days of receipt of the invoice. 6. DISPUTE RESOLUTION - MEDIATION A. Any claim, dispute or other matter in question arising out of or related to this Agreement shall be subject to mediation as a condition precedent to voluntary arbitration or the institution of legal or equitable proceedings by either party. B. The CITY and CONTRACTOR shall endeavor to resolve claims, disputes and other matters in question between them by mediation. C. The parties shall share the mediator's fee and any filing fees equally. The mediation shall be held in Clermont, Lake County, Florida, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement Agreements in any court having jurisdiction thereof. 7. INSURANCE AND INDEMNIFICATION RIDER 7.1. Worker's Compensation Insurance The CONTRACTOR shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all its employees connected with the work of this Project and, in case any work is sublet, the CONTRACTOR shall require the subCONTRACTOR similarly to provide Worker's Compensation Insurance for all of the subCONTRACTOR employees unless such employees are covered by the protection afforded by the CONTRACTOR. Such insurance shall comply with the Florida Worker's Compensation Law. In case any class of employees engaged in hazardous work under this Agreement at the site of the Project is not protected under the Worker's Compensation statute, the CONTRACTOR shall provide adequate insurance, satisfactory to the CITY, for the protection of employees not otherwise protected. 7.2. CONTRACTOR's Commercial General Liabilitv Insurance The CONTRACTOR shall take out and maintain during the life of this Agreement, Commercial General Liability and Business Automobile Liability Insurance as shall protect it from claims for damage for personal injury, including accidental death, as well as claims for property damages which may arise from operating under this Agreement whether such operations are by itself or by anyone directly or indirectly employed by it, and the amount of such insurance shall be as follows: A. CONTRACTOR's Commercial General Liability, $1,000,000 Each, ($2,000,000 aggregate). Liability Coverages, Bodily Injury Occurrence, & Property Damage Combined Single Limit B. Automobile Liability Coverages, $1,000,000 Each, Bodily Injury & Property Damage Occurrence, Combined Single Limit DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Term Agreement RFP 23-076 Real Estate Broker Services Insurance clause for both BODILY INJURY AND PROPERTY DAMAGE shall be amended to provide coverage on an occurrence basis. 7.3. CITY's and CONTRACTOR's Protective Liabilitv Insurance The CITY shall procure and furnish a CITY's and CONTRACTOR's Protective Liability Insurance Policy with the following minimum limits: A. Bodily Injury Liability & $1,000,000 Each ($2,000,000 aggregate) Property Damage Liability Occurrence Combined Single Limit. 7.4. Indemnification Rider A. To the fullest extent permitted by law, the CONTRACTOR shall indemnify and hold harmless the CITY and its employees from and against all claims, damages, losses and expenses, including but not limited to reasonable attorney's fees, arising out of or resulting from its performance of the Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) , and (2) is caused in whole or in part by any negligent act or omission of the CONTRACTOR, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not such acts are caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or otherwise reduce any other right to obligation of indemnity which would otherwise exist as to any party or person described in this Article; however, this indemnification does not include the sole acts of negligence, damage or losses caused by the CITY and its other contractors. B. In any and all claims against the CITY or any of its agents or employees by any employee of the CONTRACTOR, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, the indemnification obligations under this Paragraph shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the CONTRACTOR or any subcontractor under workers' or workmen's compensation acts, disability benefit acts or other employee benefit acts. C. The CONTRACTOR hereby acknowledges receipt of ten dollars and other good and valuable consideration from the CITY for the indemnification provided herein. 8. NOTICES All notices shall be in writing and sent by United States mail, certified or registered, with return receipt requested and postage prepaid, or by nationally recognized overnight courier service to the address of the party set forth below. Any such notice shall be deemed given when received by the party to whom it is intended. DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Term Agreement RFP 23-076 Real Estate Broker Services A. CONTRACTOR: HORIZON REAL ESTATE SOLUTIONS Attn: Vernell V. Roberts, Broker - Owner/President 3483 N. Hiatus Road, Sunrise, FL 33351 A. OWNER: City of Clermont Attn: Brian Bulthuis, City Manager 685 W. Montrose Street, Clermont, FL 34711 9. MISCELLANEOUS 9.1. Attornevs' Fees In the event a suit or action is instituted to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover such sum as the Court may adjudge reasonable as attorneys' fees at trial or on any appeal, in addition to all other sums provided by law. 9.2. Waiver The waiver by city of breach of any provision of this Agreement shall not be construed or operate as a waiver of any subsequent breach of such provision or of such provision itself and shall in no way affect the enforcement of any other provisions of this Agreement. 9.3. Severability If any provision of this Agreement or the application thereof to any person or circumstance is to any extent invalid or unenforceable, such provision, or part thereof, shall be deleted or modified in such a manner as to make the Agreement valid and enforceable under applicable law, the remainder of this Agreement and the application of such a provision to other persons or circumstances shall be unaffected, and this Agreement shall be valid and enforceable to the fullest extent permitted by applicable law. 9.4. Amendment Except for as otherwise provided herein, this Agreement may not be modified or amended except by an Agreement in writing signed by both parties. 9.5. Entire Aueement This Agreement including the documents incorporated by reference contains the entire understanding of the parties hereto and supersedes all prior and contemporaneous Agreements between the parties with respect to the performance of services by CONTRACTOR. 4 DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Term Agreement RFP 23-076 Real Estate Broker Services 9.6. Assignment Except in the event of a merger, consolidation, or other change of control pursuant to the sale of all or substantially all of either party's assets, this Agreement is personal to the parties hereto and may not be assigned by CONTRACTOR, in whole or in part, without the prior written consent of city. 9.7. Venue The parties agree that the sole and exclusive venue for any cause of action arising out of this Agreement shall be Lake County, Florida. 9.8. Applicable Law This Agreement and any amendments hereto are executed and delivered in the State of Florida and shall be governed, interpreted, construed and enforced in accordance with the laws of the State of Florida. 9.9. Public Records The CONTRACTOR expressly understands records associated with this project are public records and agrees to comply with Florida's Public Records law, to include, to: A. Keep and maintain public records that ordinarily and necessarily would be required by the CITY in order to perform the services contemplated herein. B. Provide the public with access to public records on the same terms and conditions that the CITY would provide the records and at a cost that does not exceed the cost provided in this Florida's Public Records law or as otherwise provided by law. C. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law. D. Meet all requirements for retaining public records and transfer, at no cost, to the CITY all public records in possession of CONTRACTOR upon the termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. CONTRACTOR shall use reasonable efforts to provide all records stored electronically to the CITY in a format that is compatible with the information technology systems of the CITY. E. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, THE CONTRACTOR SHALL CONTACT THE CITY'S CUSTODIAN OF PUBLIC RECORDS AT THE CITY CLERK'S OFFICE, (352) 241-7331. DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Term Agreement RFP 23-076 Real Estate Broker Services 10. CONTRACT DOCUMENTS The Contract Documents, as listed below are herein made fully a part of this Contract as if herein repeated. Document Precedence: A. This Agreement B. Purchase Order / Notice To Proceed C. An applicable Contractor Quote or Statement of Work D. All documents contained in RFP 23-076 titled Real Estate Broker Services and CONTRACTOR's response thereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this I Ith day of August 2023. CITY OF CLERMONT DocuSigned by: 2BA7692F758C492... Tim Murry, Mayor ATTEST: Tracy Ackroyd Howe, City Clerk 11 DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF HORIZON REAL ESTATE SOLUTIONS, LLC. DocuSigned by: v¢s U�vr� (( V. r6bt By: D6E0669FEE5F463 . Print Name: Vernell V. Roberts Title: CEO Date: 8/11/2023 DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF EXHIBIT "A" E. FEE SCHEDULE 1. Commission Rate: The commission rate charged by our firm is 6% of the purchase price for sales and 10% of the annual rent, per term negotiated, for leasing. This structure ensures fair compensation for all parties involved while incentivizing collaboration and fostering strong relationships within the real estate industry. This structure, which is split evenly with cooperating brokers, reflects our commitment to fair compensation, collaboration, and providing exceptional service to our clients. By fostering strong relationships within the real estate industry, we create an environment that benefits all parties involved. This commission structure has proven to be effective in incentivizing cooperation, promoting professionalism, and maximizing outcomes for our clients. 2. Rate for Property Evaluations (negotiable based on size and property type): The process of evaluating properties is a crucial component of real estate transactions. Determining rates for property evaluations requires careful consideration of various factors, including square footage and property type. Property evaluations can be determined based on these factors: distinctions between regular sales and income -producing properties, as well as whether the subject property is commercial or residential. Differentiating Commercial and Residential Properties: Commercial and residential properties have distinct characteristics that affect their evaluation rates. Commercial properties are typically intended for business purposes, including offices, retail spaces, or industrial facilities. The evaluation of commercial properties considers factors such as location, accessibility, market demand, potential rental income, and zoning regulations. Due to the specialized nature of commercial evaluations, the rates may be higher than those for residential properties. Residential properties, on the other hand, are primarily used for dwelling purposes. Evaluators assess residential properties based on factors such as location, condition, amenities, and comparable sales in the neighborhood. Residential evaluation rates may vary depending on the complexity of the property, but they generally tend to be lower than commercial evaluation rates due to the typically simpler nature of the assessments. Regular Sales vs. Income -Producing Properties: Distinctions between regular sales and income -producing properties influence the rates for property evaluations. Regular sales typically involve residential properties intended for personal use. In such cases, the evaluation rates may be based on the property's market value, considering square footage, location, amenities, and comparable sales in the area. On the other hand, income -producing properties, such as rental properties or commercial spaces, require specialized evaluation methods. Evaluators need to consider factors like Property of Horizon Real Estate Solutions LLC —June 9, 2023 Page 15 DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF potential rental income, occupancy rates, maintenance costs, and market demand. Due to the other complexities involved, the rates for evaluating income -producing properties may be higher than those for regular sales. 3. Rate — Other (negotiable): The real estate market can be influenced by various factors, such as regional dynamics, market demand, property -specific considerations, and economic fluctuations. These factors may require a nuanced approach to determining evaluation rates. As a result, we recognize the importance of remaining flexible and responsive to the specific needs and circumstances of our clients. While rates for property evaluations are generally determined based on square footage and property type, it is important to acknowledge that the complexity of the real estate market may call for flexibility in negotiating terms. While we strive to establish fair and consistent rates, we understand that each transaction and property is unique, and we remain open to discussing terms that are mutually beneficial to all parties involved. Property of Horizon Real Estate Solutions LLC —June 9, 2023 Page 16 DocuSign Envelope ID: C3222BA1-7546-4DFF-B1C8-FA3D44C862CF Request For Proposal #RFP 23-076 Title: Real Estate Broker Services 3. STATEMENT OF WORK 3.1. Scope of Services The City of Clermont is seeking a qualified real estate firm, licensed in the State of Florida, to provide their services to the City. The successful respondent must provide the following services: A. Services required to perform market analysis. B. Develop strategies for the sale and/or lease of properties. C. Negotiate with buyers or lessees on behalf of the City. D. Coordinate real estate appraisals. E. Coordinate real estate transaction closings. F. Handle all other customary activities and services associated with real estate transactions Other services may include consulting with City staff and City Council members relating to the sale and/or lease of real estate. Presentations at public meetings may be required. 3.2. Minimum Qualifications A. Must be currently licensed and in good standing with the State of Florida. B. Must have an excellent reputation in the real estate community. C. Must be knowledgeable in the local real estate market and have experience with small and large properties. D. Must be knowledgeable in the use of all public real estate records. E. The successful respondent must have a real estate broker license for a minimum of five (5) years. F. The real estate broker must maintain an office that complies with state statutes and the rules of the Florida Real Estate Commission. 10