City Council

River Heights City River Heights City Council Agenda Monday, December 30, 2024 Notice is hereby given that the River Heights City Council will hold their regular meeting at 6:30 p.m., anchored from the River Heights City Office Building at 520 S 500 E. Attendance can be in person or through Zoom. Pledge of Allegiance Opening Thought (Mathews) Adoption of Previous Minutes and Agenda Reports and Approval of Payments and Purchase Orders (Mayor, Council, Staff) Public Comment Approve Contract with Property Management Company for Management of Old School Rentals Appointment of New Mayor to Serve the Remainder of Jason Thompson's Term Adjourn Posted^is 27‘^ day of December 2024 Sheila Lind, Record] Zoom Link: https://us02web.zoom.us/i/87159788918 {n compliance with the American Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify Sheila Lind, (435) 770-2061 at least 24 hours before the meeting. 520 South 500 East River Heights, Utah 84321 Phone & Fax (435) 752-2646  River Heights City 1 3 Council Meeting 4 December 30, 2024 5 6 7 Present: Mayor Jason Thompson Council members: Lana Hanover 9 Janet Mathews, electronic 10 Chris Milbank 11 Blake Wright 12 Public Works Director Clayten Nelson 13 Recorder Sheila Lind 14 Treasurer Michelle Jensen 15 16 Absent Councilmember Lance Pitcher 17 Others Present Cindy Schaub, Michael Jarrett, Amanda Goddard, Noel 19 Cooley, Heather Lehnig, Kathy and Sophie Wright, Bryan 20 and Brittany Cascio, Josiah, Arlo, Miles, Abby, Henry, and 21 Pierce Thompson 22 24 The following motions were made during the meeting: 25 26 Motion #1 27 Councilmember Milbank moved to "adopt the minutes of the council meeting of December 3, 28 2024, and the evening's agenda." Councilmember Mathews seconded the motion, which passed with 29 Hanover, Mathews, Milbank, and Wright in favor. No one opposed. Pitcher was absent. 30 31 Motion #2 32 Councilmember Wright moved to "approve the bills as presented." Councilmember Milbank 33 seconded the motion which passed with Hanover, Mathews, Milbank, and Wright in favor. No one 34 opposed. Pitcher was absent. 35 36 Motion #3 37 Councilmember Wright moved to "accept the Management Agreement between the City and 38 Catalyst as presented." Councilmember Milbank seconded the motion, which passed with Hanover, 39 Mathews, Milbank, and Wright in favor. No one opposed. Pitcher was absent. 40 41 42 Proceedings of the Meeting: 43 44 The River Heights City Council met at 6:30 p.m. in the Ervin R. Crosbie Council Chambers in the River Heights City Building on Monday, December 30, 2024, for their regular council meeting. Tui Muoimy, la/so/aa T 520 South 500 East River Heights, Utah 84321 Phone & Fax (435) 752-2646 46 Pledge of Allegiance and Opening Thought: Councilmember Mathews opened the meeting with a 47 prayer. 48 Adoption of Previous Minutes and Agenda: Minutes for the December 3, 2024, meeting were 49 reviewed. 50 Councilmember Milbank moved to "adopt the minutes of the council meeting of December 3, 51 2024, and the evening's agenda." Councilmember Mathews seconded the motion, which passed with 52 Hanover, Mathews, Milbank, and Wright in favor. No one opposed. Pitcher was absent. 53 Reports and Approval of Payments (Mayor. Council. Staff): There were no reports. 54 Approval of Payments 55 • Treasurer Jensen presented and answered questions concerning the bills. There was a slight 56 question about If the final few items had been finished up by Raymonds at the new park. The 57 Council planned to approve the Raymond bill but have Treasurer Jensen double check with the 58 city engineer prior to sending the check. 59 Councilmember Wright moved to "approve the bills as presented." Councilmember 60 Milbank seconded the motion which passed with Hanover, Mathews, Milbank, and Wright in 61 favor. No one opposed. Pitcher was absent. 62 • Treasurer Jensen informed that Opticare had gone out of business. She had been working on 63 getting vision Insurance through PEHP. 64 Public Comment: There was none. 65 Approve Contract with Property Management Company for Management of Old School Rentals: 66 Mayor Thompson explained the contract had gone back and forth between the city attorney and Catalyst. 67 Changes were made concerning remediation, arbitration and the amount the property manager could /■ “x 68 spend on repairs without consent from the city. The mayor wanted quite a bit of communication 69 between them and the city during the first year. 70 Councilmember Wright asked how new tenant lease agreements would work. The mayor said 71 Attorney Jenkins had crafted the lease so that Catalyst would use the same one for each renter. The 72 property manager would sign on behalf of the city. However, they won't have the authority to make 73 changes to the lease. 74 Councilmember Hanover asked about the rental rates going forward. The mayor reminded that 75 the council had set these rates, which would remain the same for each tenant, with a cost of living 76 increase of 3% each year. 77 Councilmember Wright asked if the Cache Valley Humanitarian Center's lease and Brittany 78 Cascio's lease were different. The mayor said they were the same except for the rates. 79 Councilmember Milbank questioned the purpose of the meeting scheduled for Thursday with 80 Catalyst. The mayor explained it was a workshop between the city employees and Catalyst's team to ask 81 and answer questions about how things would be run. 82 Councilmember Wright asked about a lease up fee (listed in #8) in the amount of zero. The mayor 83 stated this fee was a charge the city would pay to the property manager when there was a vacancy. They 84 negotiated this to be zero. 85 Councilmember Milbank asked about the advertising fee, which had been discussed previously. 86 The mayor said the city opted not to pay a recurring advertising fee to fill vacancies. If they needed to 87 advertise, the city would reimburse them for the actual cost. The city will pay Catalyst 5.5% of gross rents 88 collected (excluding CAM fees). 89 Councilmember Milbank asked about janitorial services. The mayor said the property manager 90 would provide this, which would be covered by CAM fees. River Heights City Council Meeting, 12/30/24 2  Councllmember Mathews asked if the property manager would pay a fee to the city if they terminated the lease early. The mayor responded that there wouldn't be a fee in this case. 93 Councllmember Wright moved to "accept the Management Agreement between the City and 94 Catalyst as presented." Councllmember Milbank seconded the motion, which passed with Hanover, 95 Mathews, Milbank, and Wright in favor. No one opposed. Pitcher was absent. 96 Appointment of New Mayor to Serve the Remainder of Jason Thompson's Term: Mayor Thompson 97 stated his resignation as River Heights City mayor would take place on December 30, 2024 when his 98 replacement was sworn in. He thanked the staff and council for the time he was able to spend with each 99 person. He felt a lot of great things were accomplished during the past three years due to the wonderful 100 people on the council. He appreciated their friendship and patience with him. 101 Councilmember Wright was the only person who submitted his name to fill the mayor position. He 102 thanked Mayor Thompson for his efforts over the past three years. He explained that he had worked with 103 the past four rriayors and hoped he could live up to their examples. He intended to keep things on course 104 In the city. He planned to submit a letter of resignation from his seat on the council after being sworn In 105 as mayor. 106 Mayor Thompson asked for a formal vote from the council to appoint Councilmember Wright to 107 replace him as mayor. Councilmembers Hanover, Milbank, and Mathews voted In favor. Pitcher was 108 absent and Wright recused himself. 109 Recorder Lind swore Mr. Wright in as mayor to fill the remainder of Mayor Thompson's term (of 110 one year). Ill The meeting adjourned at 7:10 p.m. 112 115 116 117 118 119 Sheila Lind, Recorder 120 121 122 123 Jason Thompson, Mayor River Heights City Council Meeting, 12/30/24 3  River Heights City Payment Approval Report - City Council AP Approval Report Page: 1 Report dates: 10/1/2022-12/30/2024 Dec 30.2024 10:47AM Report Criteria: Invoices with totals above $0 included. Only paid invoices included. tReportJ.Date Paid = 12/30/2024 GL Account Number Vendor Vendor Name Invoice Number Description Invoice Date Net Invoice Amount Sewer Department 5240 52-40-20 66 Caselle 137214 Monthly Support Charges 12/01/2024 98.33 52-40-25 623 Wonderware, Inc. dba Core Busin INV-28939 CC Proccesing 2022 11/30/2024 12.81 52-40-26 633 Freedom Mailing Services 49296 Utility Bill Processing 12/04/2024 70.14 52-40-50 366 Zions Bank 2024_11 P-CA Chevron $82.65 11/01/2024 27.55 52-40-50 366 Zions Bank 2024_11 P-CA Chevron $112.99 11/01/2024 37.66 52-40-50 366 Zions Bank 2024_11 P-CA Jiffy Lube-$114,48 11/01/2024 38.16 52-40-50 366 Zions Bank 2024_11 P-CA Maverik-$90.10 11/01/2024 30.03 52-40-65 141 Intermountain Farmers Associat 1021858773 Boots-JW 12/11/2024 48.17 52-40-65 1098 Blue Collar Haulers 1571 Garbage Dumpsters 12/16/2024 83.59 52-40-75 246 Enbridge Gas 202412 Sewer Gas 6900830000 12/11/2024 144.77 52-40-77 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.78 52-40-77 380 Rocky Mountain Power 202412 Item 24 12/04/2024 11.44 52-40-77 380 Rocky Mountain Power 202412 Item 9 12/04/2024 21.18 52-40-78 995 AskAIITech LLC A7137-469 Sewer Phones 12/16/2024 24.32 52-40-78 995 AskAllTech LLC A7137-516 Sewer Phones 12/17/2024 366.74 52-40-79 80 Comcast 202501 Internet - Sewer 12/30/2024 29.84 52-40-80 76 City Of Logan 202501 029017-001 Sewer Pretreat 12/17/2024 12.667.01 Total 5240; 13,714.52 ^4/Vater Department 5140 51-40-20 66 Caselle 137214 Monthly Support Charges 12/01/2024 98.32 51-40-25 623 Wondenvare, Inc. dba Core Busin INV-28939 CC Proccesing 2022 11/30/2024 12.82 51-40-26 633 Freedom Mailing Services 49298 Utility Bill Processing 12/04/2024 70.14 51-40-50 366 Zions Bank 2024J1 P-CA Chevron $82.65 11/01/2024 27.55 51-40-50 366 Zions Bank 2024_11 P-CA Chevron $112.99 11/01/2024 37.66 51-40-50 366 Zions Bank 2024_11 P-CA Jiffy Lube-$114.48 11/01/2024 38.16 51-40-50 366 Zions Bank 2024_11 P-CA Maverik-$90.10 11/01/2024 30.04 51-40-50 366 Zions Bank 2024_11 P-CA Maverik-$49.00 11/01/2024 16.33 51-40-50 366 Zions Bank 2024J1 P-CA Maverik - $49.00 11/01/2024 16.34 51-40-51 166 Logan City 202412_1 003789-001 12/11/2024 156.44 51-40-51 168 Logan City 202501 003992 12/18/2024 35.51 51-40-51 188 Logan City 202501 003993 12/18/2024 30.23 51-40-51 168 Logan City 202501 003994 12/18/2024 39.03 51-40-51 166 Logan City 202501 003995 12/18/2024 31.99 51-40-51 188 Logan City 202501 003996 12/18/2024 39.03 51-40-51 188 Logan City 202501 003997 12/18/2024 37.27 51-40-51 188 Logan City 202501 020975 12/18/2024 17.15 51-40-51 188 Logan City 202501 021927 12/18/2024 33.75 51-40-60 243 Providence Logan Irrigation Co 202501 Prolog water fees 12/30/2024 3,445.00 51-40-60 243 Providence Logan Irrigation Co 202501 Prolog water fees 12/30/2024 650.00 51-40-65 137 Hydro Specialties Company 29041 Superior Regulator 11/26/2024 1,786.22 51-40-65 141 Intermountain Farmers Associat 1021858773 Boots-JW 12/11/2024 48.17 51-40-65 877 Core & Main W143929 51-40-65 Water Leak 12/10/2024 2,098.22 51-40-65 1098 Blue Collar Haulers 1571 Garbage Dumpsters 12/16/2024 83.59 51-40-75 246 Enbridge Gas 202412 2053895762 12/11/2024 200.15 -'.1^0-75 246 Enbridge Gas 202412 Water Gas 6900830000 12/11/2024 144.77 11^0-75 246 Enbridge Gas 202412 7191650000 12/11/2024 143.70 J1-40-75 246 Enbridge Gas 202412 7953243487 12/11/2024 151.29 51-40-77 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.78 River Heights City Payment Approval Report - City Council AP Approval Report Page: 2 Report dates: 10/1/2022-12/30/2024 Dec 30, 2024 10:47AM GL Account Number Vendor Vendor Name Invoice Number Description Invoice Date Net Invoice Amount 51-40-77 380 Rocky Mountain Power 202412 Item 21 12/04/2024 460.03 51-40-77 380 Rocky Mountain Power 202412 Item 23 12/04/2024 89.34 51-40-77 380 Rocky Mountain Power 202412 Item 7 12/04/2024 10.76 51-40-77 380 Rocky Mountain Power 202412 Item 8 12/04/2024 3,301.60 51w|0.77 380 Rocky Mountain Power 202412 Item 9 12/04/2024 21.18 51-40-78 995 AskAIITech LUC A7137-469 Water Phones 12/16/2024 24.32 51-40-78 995 AskAIlTech LLC A7137-516 Water Phones 12/17/2024 366.63 51-40-79 80 Comcast 202501 Internet - Water 12/30/2024 29.83 51-40-80 472 Thatcher Company 202410011847 Chlorine 51-40-80 12/09/2024 4,834.25 Total 5140: 18,659.59 Administration 1041 10-4M3 85 Daines and Jenkins, LLP 9841 City Legal Business 11/14/2024 1,647.00 10-41-65 141 Intermountain Farmers Associat 1021858773 Boots - JW 12/11/2024 48.16 10-41-65 1098 Blue Collar Haulers 1571 Garbage Dumpsters 12/16/2024 83.60 10-41-80 623 Wonderware, Inc. dba Core Busin INV-28939 CC Proccesing 2022 11/30/2024 12.82 Total 1041: 1.791.58 Office Expenses 1044 10-44-10 366 Zions Bank 2024_11 P-CA Sams Club 11/01/2024 97.92 10-44-10 366 Zions Bank 2024_11 P-CA Sams Club 11/01/2024 104.25 10-44-10 366 Zions Bank 2024_11 P-CA Amazon Mkt 11/01/2024 10.69 10-44-10 366 Zions Bank 2024_11 P-CA Amazon-$13.86 11/01/2024 13.86 10-44-10 633 Freedom Mailing Services 49298 Utility Bill Processing 12/04/2024 70.16 10-44-35 66 Caselle 137214 Monthly Support Charges 12/01/2024 98.35 10-44-45 844 Wasatch Document Solutions, Inc. 72981 Copies Dec 2024 12/09/2024 26.45 10-44-45 844 Wasatch Document Solutions, Inc. 72981 Copies Nov 2024 Overage 12/09/2024 57.77 10-44-50 1016 Rasmussen, Spencer 202412 Newsletter 12/14/2024 77.65 10-44-50 1141 Thompson, Josiah 202412 Newsletter 12/18/2024 122.35 10-44-55 633 Freedom Mailing Services 49298 Utility Bill Processing 12/04/2024 70.14 10-44-75 246 Enbridge Gas 202412 1049100000 12/11/2024 129.20 10-44-75 246 Enbridge Gas 202412 4012182621 12/11/2024 4,379.55 10-44-77 380 Rocky Mountain Power 202412 Item 20 12/04/2024 11.42 10-44-77 380 Rocky Mountain Power 202412 Item 12 12/04/2024 143.12 10-44-78 995 AskAIITech LLC A7137-469 Admin Phones 12/16/2024 24.32 10-44-78 995 AskAIITech LLC A7137-516 Admin Phones 12/17/2024 366.63 10-44-79 80 Comcast 202501 Internet - Office 12/30/2024 29.84 Total 1044: 5.833.67 Public Safety 1054 10-54^0 76 City Of Logan 202501 029017-001 911 Comm 12/17/2024 2,001.00 10-54-75 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.78 Total 1054: 2,003.78 Capital Projects 4060 40-60-03 1129 Raymond Constmction 241105 Park - Phase #2 12/17/2024 81,218.01 40-60-04 634 Forsgren Associates, Inc. 18497 Stewart Hill Park - Const 11/25/2024 675.00 Total 4060: 81,893.01 River Heights City Payment Approval Report - City Council AP Approval Report Page: 3 Report dates: 10/1/2022-12/30/2024 Dec 30. 2024 10:47AM jL Account Number Vendor Vendor Name Invoice Number Description Invoice Date Net Invoice Amount Roads 1060 10-60-50 366 Zions Bank 2024_11 P-CA Chevron $82.65 11/01/2024 27.55 10-60-50 366 Zions Bank 2024_11 P-CA Chevron $112.99 11/01/2024 37.67 10-60-50 366 Zions Bank 2024_11 P-CA Jiffy Lube-$114.48 11/01/2024 38.16 10-60-50 366 Zions Bank 2024_11 P-CA Maverik-$90.10 11/01/2024 30.03 10-60-50 366 Zions Bank 2024_11 P-CA Maverik - $49.00 11/01/2024 16.33 10-60-60 380 Rocky Mountain Power 202412 Item 15 12/04/2024 119.80 10-60-60 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.78 10-60-60 380 Rocky Mountain Power 202412 Item 17 12/04/2024 399.26 10-60-60 380 Rocky Mountain Power 202412 Item 18 12/04/2024 11.42 10-60-60 380 Rocky Mountain Power 202412 Item 2 12/04/2024 13.78 10-60-60 380 Rocky Mountain Power 202412 Item 5 12/04/2024 1,268.34 10-60-60 380 Rocky Mountain Power 202412 Item 9 12/04/2024 21.18 10-60-60 360 Rocky Mountain Power 202412 Item 26 12/04/2024 22.51 10-60-75 246 Enbridge Gas 202412 Roads Gas 6900830000 12/11/2024 144.77 10-60-76 634 Forsgren Associates, Inc. 18496 Stormwater 10-60-76 11/25/2024 438.75 N Total 1060: 2,612.35 Parks & Recreation 1070 10-70-15 490 Ag-Trac Enterprises, L.C. 7003943 Sprinker Winter Irrigation System 11/26/2024 550.00 10-70-75 246 Enbridge Gas 202412 1550009873 12/11/2024 14.32 10-70-75 246 Enbridge Gas 202412 Parks Gas 6900830000 12/11/2024 144.78 10-70-77 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.79 iiO-70-77 380 Rocky Mountain Power 202412 Item 10 12/04/2024 10.76 10-70-77 380 Rocky Mountain Power 202412 Item 11 12/04/2024 11.44 10-70-77 380 Rocky Mountain Power 202412 Item 13 12/04/2024 10.76 10-70-77 380 Rocky Mountain Power 202412 Items 12/04/2024 21.18 Total 1070: 766.03 School Building Expenses 1075 10-75-77 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.79 10-75-77 380 Rocky Mountain Power 202412 Item 16 12/04/2024 2.79 Total 1075: 5.58 Sanitation 5490 54-90-10 633 Freedom Mailing Sen/ices 49298 Utility Bill Processing 12/04/2024 70.14 54-90-10 1115 Waste Management Corp Svc 0061749-2514- Garbage Ser\ice 12/02/2024 18,145.90 Total 5490: 18,216.04 Grand Totals: 145,496.15 River Heights City Payment Approval Report - City Council AP Approval Report Page: 4 Report dates: 10/1/2022-12/30/2024 Dec 30. 2024 10:47AM GL Account Number Vendor Vendor Name Invoice Number Description Invoice Date Net Invoice Amount Mayor: Second Signayure: Dated: Report Criteria: Invoices with totals above $0 included. Only paid invoices included. [Report].Date Paid = 12/30/2024  a:2ZAM Mail - sneiia una - uuuook Blake Wright □ □ □ □ □ To: Sheila Lind Sun 12/15/2024 8:07 PM Hi Sheila, I would like to be considered by the city council to complete the remainder of Jason Thompson’s term as mayor of River Heights City. 1, therefore, formally submit my name. Please let me know If you need me to provide additional'Informat ion. Thanks, Blake Wright Ant/A n^KR^OCnTTn/IJ \M lhnnHMnC-t MnO/IVi/iyll TV/inW/V..7i MMO'7^'7nanACnT»^«'iniriOwll ^^e,7I:r<«•0/.‘5n •IM  CATALYST PnOPERTY MANAGEMENT MANAGEMENT AGREEMENT The undersigned Owner, hereby employs the undersigned Manager, Catalyst Property Management, exclusively to rent, lease, operate and manage real property situated at (property address): And any additional property later added to this agreement (collectively “Property”), for the period beginning . 20. and ending ,20 , at 11:59 p.m. Owner is to give Manager written notice 45 days prior to termination date to cancel management agreement. If manager does not receive written notice, then this agreement will automatically renew ANNUALLY for another one- year period. I Manager's Obligations: Owner hereby confers upon the Manager the following, duties, authority and powers: 1. Leasing: To advertise the availability for rent of the Property or any part thereof and to display "For Rent" signs thereon; to execute leases, renewals or cancellations of leases relating to the Property; to determine’ and set rents and deposits; to terminate tenancies and to sign and serve for the Owner such notices as Manager deems appropriate; to provide Owner other services, such as, but not limited to instituting legal actions, evicting tenants; recover rents and other sums due; to settle, compromise and release such actions at the sole discretion of Manager. 2. Rents and Deposits: To collect rents and to collect and disburse security and other deposits; to deposit all receipts collected for Owner in a trust account with a qualified banking institution. Security deposits remain the possession of tenant, held in trust by Manager until final disposition of tenancy. Manager shall not incur any liability for bankruptcy or failure of the depository. Manager, at its own discretion and for a tenant charged fee, may occasionally allow a credit worthy Tenant to pay the deposit over a short series of payments to Manager to better facilitate the renting process. Should Tenant default on said payments. Manager will be responsible for and make the Owner whole for any deposit deficiency up to the contracted deposit amount upon Tenant vacating the premises. 3. Service Contracts: To execute contracts for electricity, gas, telephone, water, fuel and any other service contracts Manager deems necessary for the operation, safety and promotion of the property. Owner agrees to have utilities on while the Property is vacant during the marketing and leasing period including water, electricity and gas. 4. Maintenance & Repairs: To supervise and discharge all labour required for the operation and maintenance of the Property. To maintain the Property in case of vacancies. To take charge of repairs, preventative maintenance, decorating and alterations and to purchase supplies therefore. Manager agrees to obtain Owner's prior authorization for any and each expense item estimated to exceed $0 except monthly or recurring operating charges (e.g. utilities, property taxes) or for tenant related charges or for emergency repairs or in the event the owner is not reasonably available for consultation, if the Manager deems such protection of the Property from damage or to perform services to the tenants provided for in their lease. Owner agrees to pay for any labour and materials provided. An account reserve of $500 is required and will be maintained in the Owner’s trust account with Management Company. 5. Maintenance Costs: In an effort to reduce costs and liability for property maintenance, Manager may employ experienced maintenance technicians who perform repairs and maintenance for Owners, on an as available basis, when cost savings can be rendered as compared to using outside vendors. Owner authorizes Manager to use Manager’s employees to perform repair and maintenance services as needed. 6. Disbursements: To accrue and make disbursements from Owner's funds for: utilities, advertising, maintenance, repairs, materials, banking costs, collection fees, setup fees, legal fees, late fees. 1  refundable deposits, management fees and to remit monies to Owner or into Owner’s other accounts. Manager is not required to perform collection services. 7. Periodic Statements: To render periodic itemized statements via the Owner’s online portal of receipts, expenses, charges and accruals and to remit to Owner receipts less disbursements and accruals for future expenses. In the event disbursements shall exceed receipts. Owner assumes full . responsibility for the payment of any expenses and obligations incurred in connection with the exercise of Manager's duties set forth herein. Owner's Obligations: 8. Compensation: Owner agrees to pay Manager a fee or fees for services rendered at the rates hereinafter set forth. Owner recognizes Manager as agent in any negotiations relative to the Property or any part thereof, which may have been initiated during the term hereof, and shall compensate Manager in accordance with the rates hereinafter. Management fees: 5.50% of gross rents collected (excluding CAM fees). Lease up fee of $0 at the time of tenant placement. 50% of late fees paid by tenant. Such compensation is due and payable on demand and may be deducted by the Manager from receipts. Owner acknowledges and agrees that Manager may receive fees and charges from: 1) tenants for processing credit applications, returned checks, late rents, requesting assignment of lease or sublease, verification of rent, administrative and processing fees, and for other services not in conflict with this agreement 2) perform any of its obligations under this Agreement or otherwise including products and services for the Property, through independent contractors or affiliated companies or organizations in which Management Company Principals may own an interest, and Management Company and/or the affiliated companies or organizations may receive commissions, mark-ups, fees, and/or profits arising from such products and services without limit, and 3) receive fees, gifts, rebates or other compensation from Management’s vendors in connection with products or services performed for the Property or pursuant to this Agreement (e.g. carpet, painting, window covering, plumbing, pool, trash and insurance products and services). 9. Hold Harmless: Manager is not responsible or liable in any manner for damages, loss or injury to Owner caused by a tenant’s breach of lease or for any other action of tenants. 10. Data and Records: Owner agrees to make available all data, records and documents pertaining to the Property which the Manager may require to properly exercise Manager's duties hereunder. 11. Account Balances: Owner agrees to immediately remit funds as requested by Manager if current rental income is insufficient to pay all expenses or falls below the minimum balance stated above. If Owner is unable or unwilling to send funds as requested by Manager in a timely manner, the following priority will apply when disbursing funds: fees and expenses associated with the operations of management, prearranged payments of mortgages and insurance, owner distributions. Owner agrees to pay late charges, interest charges, and other penalties caused by lack of insufficient funds. 1 Other Terms: 12. (Reserved) 13. Termination: This agreement supersedes all previous management agreements, both verbal and written. If Owner terminates the Agreement prior to the annual renewal date for any reason, Owner agrees to pay Manager an early termination fee equal to either to the greater of four month’s management fees or the balance of the management fees for the months remaining on the lease term contract. Additionally, if Property is not rented at the time of premature termination. Owner will pay to Manager outstanding advertising and marketing balances. Both parties agree the early termination fee is not a penalty but liquidated damages to compensate Manager for the value of work reasonably estimated to be performed prior to termination. Upon settlement of any outstanding balances. Manager will deliver all leases, keys, ledgers, and monies due, if any, within 30 days. 2  14. Termination bv Listing or Sale of Property: If Owner enters into an agreement with a non-affiliated Agent or lists for sale by Owner his/her property, Owner acknowledges this, in effect, is a notice of termination by Owner and Manager may, at Manager's discretion, terminate this contract by written notice. By entering into such arrangement, Owner agrees to the termination fees described above. However, Manager agrees that if Owner enters into a listing agreement to sell his/her property with an affiliate Agent, where Manager can reasonably accommodate and coordinate the Tenant's right to 'Quiet Enjoyment' and the Owner's irght to sell his/her property, Manager will waive the termination fees. 15. Mediation and Arbitration: MANAGER AND OWNER AGREE TO MEDIATE ANY DISPUTE OR CLAIM BETWEEN THEM ARISING OUT OF THIS CONTRACT OR ANY RESULTING TRANSACTION BEFORE RESORTING TO COURT ACTION. The mediation fee, if any, shall be divided equally among the parties involved. 16. Entire Contract: Changes: If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in it may be amended, modified, altered or changed except when provided in writing with 30 days advanced notice fi’om Management Company. Property Owner Information & Preferences Owner 1: Owner 2: (print name) (print name) Owned by Corporation or LLC: Yes # No If yes, name of Corp or LLC: Tax ID Number associated with Property: (for IRS 1099 preparation) Percent ownership for each Owner: (for 1099) Select Only One: I Direct Deposit: Bank Name: (alternately you may provide a void check) Routing Number: Account Number: OR Issue Check: Name on Check: Owner Mailing Address: City: State: Zip: Home Phone: Work Phone: Cell Phone 1: Cell Phone 2: Primary Email: ^ belongs to: Alternate Email: ^ belongs to: 3 I(We) Agree to the above terms and conditions. Property Owner Date: (signature) Property Owner Date: (signature) By: Catalyst Property Management 135 S Main St, Suite 100 Logan, UT 84321 Ph: 435-755-3010 Fax:435-494-4262 4