4.1 Management and Operations. Operator will manage and operate the property in a professional, highquality manner throughout the Term of the agreement. Services to be provided by Operator under the agreement will include, but are not limited to the following: a. Maintain the Property in a clean and safe condition according to generally- accepted property management standards. b. Repair, replace and/or alter the Property as may be necessary to meet health, life, safety and generally-accepted maintenance standards. c. Contract for electricity, gas, fuel, water, trash removal, telephone service, cleaning, vermin extermination, security, graffiti, power washing surfaces, window cleaning, and any other required service(s). If deemed necessary and upon direction by Prosper Portland, contract for third-party security services. d. Provide 24-hour emergency response service for the Property and its tenants. Immediately inform Prosper Portland’s designated point(s) of contact in the event of an emergency event or situation, including any structural fire, police action or other emergency situation that has occurred on or within the Property. e. Initiate legal actions or proceedings, after obtaining Prosper Portland’s prior approval, for the purpose of collecting rents and other income due, recovering possessions, forcible entry and detainer actions and other legal actions to enforce terms of the tenant’s lease agreements, and other legal actions, suits or proceedings that may affect the Property, tenants and/or Operator. f. Establish a written tenant conflict resolution process and implement this process with Prosper Portland approval. Promptly inform Prosper Portland’s designated point(s) of contact of any conflicts that cannot be resolved through this process. g. Encourage and facilitate the participation of disadvantaged (DBE), minority-owned (MBE), women-owned (WBE), and emerging small businesses(ESB), certified by the State of Oregon Office of Minority, Women and Emerging Small Businesses, as contractors and vendors for services and products necessary for performance of work under the Contract. h. All employees and subcontractors/service providers retained by the Operator are the sole responsibility of the Operator and will be acting under the direction and supervision of the Operator without liability to Prosper Portland. l. Contractor will coordinate and facilitate monthly consultation with Prosper Portland on matters relating to the management and operation of the Property. Operator will not be responsible for major capital or structural repairs or replacements, but may assume the role of general contractor on behalf of Prosper Portland. All maintenance services provided by Operator will be subject to Prosper Portland review, inspection, and verification of any and all activities and reporting requirements at any time without notice. 4.2 Financials. Monthly net revenues must be forwarded to Prosper Portland and are due on or before the 20th of the following month in which those revenues are accrued. a. Operator will deposit and account for all lease income, other property income and miscellaneous receipts. Any interest earned in any Prosper Portland Client Trust Account(s) shall be considered other income and accrue to the benefit of Prosper Portland. The maximum monthly carry-forward balance to be used for the Property operating expenses shall not exceed five thousand dollars ($15,000.00) unless otherwise specified by the Prosper Portland Project Manager. Maximum monthly petty cash to be used for day- to-day miscellaneous Property expenses shall not exceed two hundred fifty dollars ($250.00). All petty cash expenditures require justification and approval by Prosper Portland. Tenant security deposits should be collected and deposited in accordance with ORS 90.300. b. Operator will be authorized to withdraw all permitted management fees, carry-forward operating balance, petty cash, turn-over costs, services, operation, marketing, maintenance, staff and other costs from receipts, prior to disbursement to Prosper Portland. All expenditures that exceed the monthly budget require justification and approval by Prosper Portland. c. Wages, salaries, and other compensation paid to the Operator’s employees for performance of work under the contract, including, without limitation to, unemployment insurance, social security, workers’ compensation insurance and disability benefits, as well as direct costs for other subcontractors/service providers, shall constitute operating expenses of the Property and are therefore chargeable to Prosper Portland. Upon written request by Prosper Portland, the Operator shall not unreasonably refuse to replace any person in its employment or any subcontractor/service provider. d. Operator shall maintain full and complete accounting records and make these records available for review and/or audit by Prosper Portland or Prosper Portland’s representative(s) upon request. 4.3 Financial Reporting and Budgeting Responsibilities. On or before the 20th of each month, Operator shall prepare and deliver the following reports to Prosper Portland’s designated point(s) of contact pertaining to the previous month: a. Monthly completed “Owner Property Management Report” which must include a narrative summary of any problem areas, steps or recommendations to rectify any problems and a summary of the Property maintenance activities b. Monthly occupancy and availability reports c. Monthly leasing activity reports d. Monthly statement of receipts and disbursements e. Monthly complete and accurate Rent Roll f. Monthly cash balances shown to be due to Prosper Portland g. Monthly itemization of all expenses, bills and invoices
