HomeMy WebLinkAboutContracts & Agreements_45-2011_CCv0001.pdf AGREEMENTWITH B'F1 APPRAISAL FOR
PROPERTY APPRAISAL SERVICES
This agreement for appraisal services("Agreement")is made and entered into this 21' day
of April,2011 ("`E1 ective Date"),by and between the City of Redlands("City")and BT1 Appraisal,
a California corporation("Consultant"). City and Consultant are sometimes individually referred to
herein as a"Party" and, together, as the"Parties."
In consideration of the mutual promises contained herein, City and Consultant agree as
follows:
ARTICLE I - ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to perforrn appraisal services(the"Services")to determine
the fair market value(as defined by California Code of Civil Procedure section 1.263.320(a))
of certain real property located in the City of Redlands and which is identified as County of
San Bernardino Assessor Parcel Nos. 0292-044-09,10,11 and 12 (the "Property"),
Consultant shall appraise the property"as unaffected by contamination." Consultant shall
appraise the Property both for its use as property for City's landfill, and as though the
property had General Plan and Specific Plan designations permitting industrial uses, and
shall also include within its appraisal report a statement of appropriate contingent and
limiting conditions, if any. The specific Services to be performed by Consultant are more
particularly described in Consultant's "Scope of Services,- which is attached hereto as
Exhibit"A.'"
L2 Consultant shall prepare and deliver to City a complete appraisal in compliance with the
Uniform Standards of Professional Appraisal Practice. Consultant shall deliver five (5)
copies of the appraisal to City.
1.3 Consultant's obligation to provide the Services to City is personal in nature,and shall not be
delegated or assigned without City'S prior written consent.
L4 The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently maintained by other practicing
professional consultants in the industry providing like and similar types of services.
1.5 Consultant shall comply with all applicable Federal, State and local laws and regulations in
the performance of this Agreement including, but not limited to, the Americans with
Disabilities Act and the Fair Employment and Housing Act.
ARTICLE 2 - RESPONSIBILITIES OF CITY
2.1 City shall make available to Consultant information in its possession that may, assist
Consultant in performing the Services.
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2.2 City will make provision for Consultant to enter upon the Property, as reasonably required
by Consultant, to perform the Services.
2.3 City designates its Development Services Director,or his designee,as City's representative
with respect to Consultant' s performance of the Services. The Development Services
Director shall have the authority to transmit instructions,receive information, interpret and
define City's policies and decisions with respect to performance of the Services.
ARTICLE 3 - PERIOD Cl' SERVICE
3.1 Consultant shall perform the Services in a prompt and diligent manner and shall complete
the Services within ten (10) days from the Effective Date of this Agreement. Consultant
shall commence the Services upon the date of City's written notice to proceed to Consultant.
This Agreement will be considered terminated by City upon Consultant's completion of the
Services and their acceptance by City. City assumes no liability for Services performed or
costs incurred prior to the date of the notice to proceed,or subsequent to this Agreement's
termination date.
ARTICLE 4 - PAYMENT AND NOTICE
41 The total compensation for Consultant's performance of the Services shall not exceed the
amount of Six Thousand Five Hundred Dollars($6,500). City shall pay Consultant on a time
and materials basis up to the not to exceed amount in accordance with the rate schedule
attached hereto as Exhibit"B."
4.2 Payment by City to Consultant shall be made and upon conclusion of the completion the
Services.
43 All notices shall be given in writing by personal delivery or by mail. Notices, sent by
United States mail should be addressed as follows,
City: Oscar Orci
Development Services Director
City of Redlands
PO Box 3005
Redlands, CA 92373
(909) 798-7598(Telephone)
(909) 335-4779 (Facsimile)
BTI Appraisal: Ben F. Tunnel], III
605 West Olympic Boulevard
Suite 820
Los Angeles, CA 90015
(213) 532-3800(Telephone)
(213) 532-3807(Facsimile)
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When sir addressed, such notices shall be deemedive n upon deposit in the United States Mail.
Changes may be made in the names and addresses of the person to who notices and payments are
to be given by giving notice pursuant to this section.
ARTICLE 5 - INSU'RANCE ANIS INDEMNIFICATION
5.1 Insurance, generally. All insurance required by this Agreement shall be maintained by
Consultant for the duration of its performance of the Services. Consultant shall not perforin
any Services pursuant to this Agreement unless and until all required insurance listed below
is obtained by Consultant. Consultant shall provide City with certificates of insurance and
endorsements evidencing such insurance prior to commencement of the Services. All
insurance policies shall include a provision prohibiting cancellation of the policy or
modification of the policy's coverage limits except upon thirty(30)days prior written notice:
to City:
5 Workers' Compensation. Consultant shall secure and maintain Workers' Compensation and
Employer's Liability insurance throughout the diaration of its performance ofthe Services,in
an amount which meets the statutory requirement with an insurance carrier acceptable to
City. The insurance policy shall include a provision prohibiting cancellation of said policy
except upon thirty(30)days prior written notice to City.
5.3 Mold Harmless and Indemnification. Consultant shall indemnify,hold harmless and defend
City and its appointed officials,employees and agents from and against any and all claims,
losses or liability, including attorneys' fees, arising from injury or death to persons or
damage to property occasioned by any act, omission or failure to act by Consultant, its
officers, employees and agents in performing the Services.
5.4 Comprehensive General Liability Insurance. Consultant shall secure and maintain in force'
throughout the duration of the Agreement comprehensive general liability insurance with
carriers acceptable to City. Minimum coverage of One Million Dollars ($1,000,000) per
occurrence and Two Million Dollars ($2,000,000) aggregate for public liability, property
damage and personal injury is required. City shall be named as an additional insured, and
such insurance shall be primary and non-contributing to any insurance or self-insurance
maintained by City. Certificates of insurance and endorsements shall be delivered to City
prior to corn m ncement of the Services.
5.5 Professional Liability Insurance. Consultant shall secure and maintain professional liability`
insurance throughout the duration of this Agreement in the amount of One Million Dollars-
($1,000,000)per claim made. A certificate of insurance and endorsement shall be delivered
to City prior to commencement of the Services,
5.6 Business Auto liability Insurance. Consultant shall have business auto liability cov=erage,
with minimum limits-ofOne Million Dollars($1,000,000}per occurrence,combined single
limit for bodily injury liability and property damage liability:.This coverage shall include all
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Consultant owned vehicles used on the project,hired and non-owned vehicles,and employee
non-ownership vehicles. Such insurance shall be primary and non-contributing to any
insurance or self insurance maintained by City. City shall be named as an additional insured
and a certificate of liability insurance and endorsement shall be delivered to City prior to
commencement of the Services.
AWrICLE 6 -CONFLICTS OF INTEREST
6.1 Consultant covenants and represents that it does not have any investment or interest in
the real property that is the subject of this Agreement.Consultant further covenants and
represents that in the performance of its duties hereunder, no person having any such
interest shall perforin-any Services under this Agreement.
6.2 Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make or participate in:
(i) the making of any City governmental decisions regarding approval of a
rate, rule or regulation,or the adoption or enforcement oflaws;
(ii) the issuance, denial, suspension or revocation of any City pen-nits,
licenses, applications, certifications, approvals, orders or similar
authorizations or entitlements;
(iii) authorizing City to enter into, modify or renew a contract;
(iv) granting City approval to a contract that requires City approval and to
which City is a party, or to the specifications for such a,contract;
(v) granting City approval to a plan, design, report, study or similar item;
(vi) Adopting,or granting City approval of, policies, standards or guidelines
f'or City,or for any subdivision thereof
B. Does not serve in a staff capacity with City and in that capacity participate in
making a governmental decision or otherwise perform the same or substantially all the
same duties for City that would otherwise be performed by an individual holding a
position specified in City's Conflict of Interest Code under Government Code section
87302.
6.3 In the event City officially determines that Consultant must disclose its financial interests
by completing and filing a Fair Political Practices Commission Form 700, Statement of
Economic Interests, Consultant shalt file the subJect Form 700 with the City Clerk's
office pursuant to the written instructions provided by the Office of the City Clerk.
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ARTICLE 7—CONFIDENTIALITY
7:1 Consultant understands and agrees that the Services, conclusions and appraisal report are
confidential in nature. Neither the appraisal report nor the opinions therein shall be
disclosed to anyone other than City`s counsel or City staff assisting City's counsel. The
appraisal report,together with other documents required by this Agreement, shall be
submitted to City's counsel in the carne manner as notices are given pursuant to this
Agreement. Consultant understands and agrees that its duty of confidentiality to Cit
dues not end upon the termination of this Agreement.
ent.
ARTICLE 8-GENERAL CQNSIDER.ATIONS
8;1 In the event any action is commenced to enforce or interpret any of the terms or conditions
of this Agreement the prevailing Party shall, in addition to any casts and other reliefs be
entitled to the recovery of its reasonable attorneys' fees, including flees for use of in-house
counsel by a Party-.
8.2 Consultant shall not assign any of the Services to be performed under this Agreement,except
with the prior written approval of City and in strict compliance with the terms, provisions
and conditions of this Agreement.
8.3 Consultant is for all purposes an independent contractor. Consultant shall supply all tools
and instrumentalities required to perforin the Services. All personnel employed by
Consultant are for its account only, and in no event shall Consultant or any personnel
retained by it be deemed to have been employed by City or engaged by City for the account
of,or on behalf of City.
8.4 Unless earlier terminated, as provided for below, this Agreement shall terminate upon
ccornpletion and acceptance of the Services by City.
8.5 This Agreement may be terminated by City, in its sole discretion and without cause, by
providing.. five(5) business days' prior written notice to Consultant(delivered by certified
mail, return receipt requested) of intent to terminate
8.6 If this Agreement is terminated by City,an adjustment to Consultant's compensation shall be
made,but(1)no amount shall be allowed for anticipated profit or unperformed services,and
(2)any.payment due Consultant at the tirne of termination may be adjusted to the extent of
any additional costs to City occasioned by,any default by Consultant.
8.7 Consultant shall maintain boobs and.accounts of all payroll coasts and expenses related to the
Services. Such boobs shall be available at all reasonable times for examination by City at
the office of Consultant.
8.8 This Agreement. including the Exhibits incorporated herein by reference, represents the
entireagreement and understanding:between the parties as to the matters contained herein,
and any prior negotiations, written proposals or verbal agreements relating to such matters
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are superseded by this Agreement. Any amendment to this Agreement shall be in writing,
approved by City and signed by City and Consultant.
8.9 This Agreement shall be go erred by and construed in accordance with the laws of the State
of California.
IN WITNESS WHEREOF,duly authorized representatives of the City and Consultant have
signed in confirmation of this Agreement.
CITY O"ED D-
Q BTI APPRAISAL,A California corporation
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Exhibit "A"
Scope of Work
BTI Appraisal will complete Scopes 1 and 2 within I week of receipt of City research for
the fixed fee of$6,500.
SCOPE 1,
SCOPE OF THE APPRAISAL FOR THE
CITY"OF E2EDL NDS BUFFER ACREAGE
We will identify and inspect the subject property. We have been informed that
the property is located north of Palmetto Avenue between California Avenue and Nevada'Street
in the City of Redlands. The parcel's APN s are 0292-044-09, 10, 11-, and 12 with a total land
area of 37.3 Acres.
Although the site is currently identified for open space/agricultural use in the
general plan and zoning code, we will appraise the property as though it is approved for
industrial development. This use is consistent with surrounding development and it is the city of
Redlands stated intent to change the subject property's general plan and zoning designations to
permit industrial use.
We will determine the net size of the subject property after additional right-of-
way dedication along Palmetto Avenue based upon information provided by the City of
Redlands.
We will also consider in our valuation information provided by the City of
Redlands regarding additional site preparation costs related to presence of the landfill
immediately adjacent to the subject property that would be required by the developer of the site
and the City to permit such development.
After receiving the assignment, a.preliminary search will be made to determine
market trends and other significant factors pertinent to the subject property.
In order to develop credible assignment results,this appraisal will include
research and analysis of property characteristics, taxes, zoning, restrictions and encumbrances.
The Sales Comparison Approach will include research of market trends, new
construction, absorption, marketing and exposure time, comparable sales and analysis of sale
comparables.
Data systems we utilize include, but are not limited to,the following
''SDC data, provided by National Data Collective, is a comprehensive on-line
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database provides information on sales, property data, FEMA flood inap
information, and parcel maps for properties throughout the United States.
Real Quest.provided by Core Logic, is also a comprehensive on-line database
providing a second,confirming source for data used in our reports.
Loopnet is an on-line database providing information on sales, listings,rentals,
brokers, and additional market data throughout the United States.
CoStar Comps, provided by the CoStar Group, is an on-line database which
provides detailed sales and financial information for commercial, industrial,
special purpose and apartment properties throughout the United States.
Real Estate Multiple Listing Services provide on-line connections to MLS
cooperatives throughout most of Southern California, allowing the appraiser to
gather up-to-the-minute information on property sales, rentals and current listings.
In addition to our in-house data systems we interview, by telephone or in person,
real estate brokers, property owners, buyers and sellers of property, and tenants,as well as
governmental and non-governmental entities having jurisdiction or influence in current market
trends and attitudes. We then analyze and reconcile the collected data to form our opinion of
value.
A physical inspection of the subject property will be performed. However, the
appraiser is not an expert in such matters as structural engineering, hazardous waste, soil
slippage,and no warranty is given with regard to these elements. As needed, inspections by
various licensed professionals within these fields might be recommended with the final estimate
subject to their findings.
This appraisal report will be completed in accordance with requirements dictated
by the Uniform Standards of Professional Appraisal Practice, 2010-2011 Edition(d),The
Appraisal Foundation. The report will include such data and information needed to lead the
reader to a similar estimate of our fair market value conclusions.
SCOPE2
ANALYSIS OF FUTURE COST SAVINGS ATTRIBUTABLE TO THE BUFFER
ACREAGE USED AS LANDFILL FOR THE CITY
'We will analyze the value-in-use of the Buffer Land Acreage for future expansion
of the city owned California Street Landfill. We will base this analysis on studies conducted by
the city and its consultants regarding the projected operational life of the existing landfill and the
additional volume and operational life projected for the possible expansion of the landfill. Also,
preliminary research may be conducted by the City to project increased future cost associated
with solid waste disposal. BTI will perform analysis as well in order to make an informed
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projection. Using this data we will be able to calculate the present value of future cost savings
versus the current market value of the buffer acreage for industrial use.
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Fee Policy
For many projects a liked fee can be quoted in advance;for other projects,charges depend on
thepersonnel assigned, the total time required and any expenses that might be incurred such as
mileage, parking, postage and copies. Our hourly rates are listed below and are the same for
deposition or trial work.
Ben F.'T'unnell 111,Chairman$395 John J Griffey, President
$310 William, Kasper, Senior Vice President $300 Megan
O'Rourke, Vice Chairman $300 Senior Appraisers $285
Appraisers$235 Researchers$150 Admin strative/ ecretarial
$4
We are pleased to bill our established clients either upon issuance of the report or at the end
of each month,whichever occurs first. Litigation matters are either billed weekly or semimonthly in
order to keep the client abreast of our activities and. charges. For newer clients, retainers are
normally requested; charges in excess of the retainer are payable prior to issuance of value
conclusions or at the end of each billing period,whichever occurs first. All bills are date and payable
upon receipt.
If you wish to name us as an expert witness in pending litigation, and we accept, we d
charge a non refundable retainer o 1,000 irrespective of any work being required. Any work
performed on the assignment will, however, be billed against this retainer.
Please also note that ourpolicy,is t provi e testi rtcrrry(courtroom or deposition)on y qfler'
Ji ll pgvinent forall services previously renderedand a retainer r,ser ices regrrevted is rc�c° iirr t
our offic=e.
605 w;Olympic Mvd.,Suite 820.les Angeles.CA 00015-tel:(213)532-3800,fax:{213)532-3807 www btlappralsal,com
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