HomeMy WebLinkAboutContracts & Agreements_178-2011_CCv0001.pdf CITY OF REDLANDS' AGREEMENT WITH BTI APPRAISAL FOR
PROPERTY APPRAISAL SERVICES
This agreement for appraisal services ("Agreement") is made and entered into this I't day of
December,2011 ("Effective Date"),by and between the City of Redlands individually
Y"),and BTI Appraisal,
a California corporation ("Consultant"). City and Consultant are sometimes 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 - ENGAGEME'lNTT OF CONSULTANT
1.1 City hereby engages Consultant to perform appraisal services(the"Services")to determine the
fair market value(as defined by California Code of Civil Procedure section 12263.320(a))and
prepare a"written statement of,or summary of,the basis for the appraisal''of certain property
located in the City of Redlands, parcel numbers 0169-011-38 and 39 . Consultant shall also
include within the appraisal reports 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 the Appraisal,"which is attached hereto as Exhibit"A.-
1.2 Consultant shall prepare and deliver to City complete appraisal and summary reports in
compliance with the Uniform Standards of Professional Appraisal Practice. Consultant shall
deliver to City five(5) copies of the appraisals and the summary reports.
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.
1.4 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,
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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.
12 City will make provision.and/or secure permission,for Consultant to enter upon the Property.,
as reasonably required by Consultant,to perform the Sen7ices.
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 OF SERVICE
3.1 Consultant shall perform the Services in a prompt and diligent manner and shall complete
the Services within thirty(310)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
4.1 The total compensation for Consultant's performance of the Services in Exhibit"A"(Scope
of Work) shall not exceed the amount of Three Thousand Five Hundred Dollars($31,500).
City shall pay Consultant on a time and materials basis up to the not to exceed amount in
accordance with the fee policy attached hereto as Exhibit "B." Any additional services
beyond those listed in Exhibit"A"(Scope of the Appraisal)requested by City will be billed
at the hourly rates in accordance with Exhibit"B" (Fee Policy).
4.2 Payments by City to Consultant shall be made within thirty (30) days after receipt and
approval by City of Consultant's invoice,by warrant payable to Consultant. Invoices
shall be sent to City on a monthly basis, or upon conclusion of the completion of Exhibit
"A"(Scope of the Appraisal).
4.3 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 Orel
Development Services Director
PO Box 3005
Redlands, CA 92373
(909) 798-7598 (Telephone)
(909) 335-4779 (Facsimile)
oorcil�,cit of�redland�s.org
BTI Appraisal: Ben F. Tunnell, III
605 West Olympic Boulevard
Suite 820
Los Angeles. CA 90015
(213) 532-3800 (Telephone)
(213) 532-1807 (Facsimile)
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When so addressed. such notices shall be deemed given 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.
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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 perform
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 evi t-1dencin,, 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.
5.2 Workers'Compensation. Consultant shall secure and maintain Workers'Compensation and
Employer's Liability insurance throughout the duration of its performance of the Services,in
an amount which meets the statutory requirement with an insurance carrier acceptable to
City.
5.3 Hold 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.
5A 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.
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
(SI,000,000)per claim made.
5.6 Business Auto Liability Insurance, Consultant shall have business auto liability coverage,
with minimum limits of One Million Dollars(S 1,000,000}per occurrence,combined single
limit for bodily injury liability and property damage liability.This coverage shall include all
Consultant owned vehicles used on the project,hired and non-owned vehicles,and employee
non-ownership vehicles. 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.
ARTICLE 6 -CONTFLICTS 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 or any other source of income,
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interest in real property or any investment which would be affected in any manner or
degree by the performance of Consultant's Services. Consultant further covenants and
represents that in the performance of its duties hereunder, no person having any such
interest shall perform any Services under this Agreement.
6.2 Consultant agrees it is not a designated employee within the meaning of the Political
t�-, --
Reform Act because Consultant:
A. Does not make or participate in:
(i) the making of any Citygovernmental decisions regarding approval of a
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rate, rule or regulation, or the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of any City permits,
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
for City or for any subdivision thereof.
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B. Does not serve in a staff capacity with City and in that capacity participate i
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 shall file the subject Form 700 with the City Clerk's
office pursuant to the written instructions provided by the Office of the City Clerk.
ARTICLE 7—CONFIDENTIALITY
7.1 Consultant understands and agrees that the Services, conclusions and appraisal reports
are confidential in nature, Neither the appraisal reports nor the opinions therein shall be
disclosed to anyone other than City's general counsel or City staff assisting City's
counsel. The appraisal reports, together with other documents required by the
Agreement, shall be submitted to City's general counsel in the same manner as notices
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are given pursuant to this Agreement. Consultant understands and agrees that its duty of
confidentiality to the City does not end upon on the termination of this Agreement.
ARTICLE 8 - GENERAL CONSIDERATIONS
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 costs and other relief, be
entitled to the recovery of its reasonable attorneys' fees, including fees 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.
83 Copies of all documents, records, drawings, designs, cost estimates, electronic data files.
databases, and other documents developed by Consultant pursuant to this Agreement, and
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any copyright interest in such documents, shall become the property of City and shall be
delivered City upon the request of City. Any reuse of such documents and any use of
incomplete documents will be at City's sole risk.
8.4 Consultant is for all purposes an independent contractor. Consultant shall supply all tools
and instrumentalities required to perform 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
engaged
of,or on behalf of City.
8.5 Unless earlier terminated, as provided for below, this Agreement shall terminate upon
completion and acceptance of the Services by City.
8.6 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.
8.7 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
any payment due Consultant at the time of termination may be adjusted to the extent of
any additional costs to City occasioned by any default by Consultant.
8.S Upon receipt of a termination notice,Consultant shall immediately discontinue all services
affected,and within five(5)days of the date of the termination notice,deliver or otherwise
make available to City,copies(in both hard copy and electronic form,where applicable)of
any data, design calculations, drawings, specifications, reports, estimates, summaries and
such other information and materials as may have been accumulated by Consultant in
performing the Seri=ices required by this Agreement, Consultant shall be compensated on a
pro-rata basis for work completed up until notice of termination.
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8.9 Consultant shall maintain books and accounts of all payroll costs and expenses related to the
Services. Such books shall be available at all reasonable times for examination by City at
the office of Consultant.
8.10 This Agreement. including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained herein,
and any prior negotiations,written proposals or verbal agreements relating to such matters
are superseded by this Agreement: Any amendment to this Agreement shall be in writing,
approved by City and signed by City and Consultant.
8.11 This Agreement shall be governed by and construed in accordance with the laws of the State
of California.
IN WITNESS WHEREOF,duty authorized representatives of the City and Consultant have
signed in confirmation of this Agreement.
CITY OF REDLANDS BTI APPRAISAL
%
- `r-_ By:
Tina Kundig,Finance DirectorfCity easurer B �Chairnman
Atte tte t:
San Irwin,City,{leak ' ecreta t the corporation
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Exhibit"A'
SCOPE OF APPRAISAL
BTI will prepare a single report that will value the subject property. The appraisal will
be completed in compliance with the Uniform Standards of Professional Appraisal Practice.
In the appraisal report BTI will value all elements of the property for fair market value at
its highest and best use, for the land and all improvements which consist of APNs 0169-011-38
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and 39.
Deliverables:
BTI will provide a screencheck draft of the appraisals for review and comment by
the City Staff.
• BTI will provide an opportunity to discuss the City's changes, if any,by
conference call.
• BTI will turn-in five (5) final copies of the appraisal which includes any changes
requested by City ty staff.
• BTI will also submit an electronic version of the appraisals in Microsoft Word
format, or other word processing application approved by both par-ties.
• BTI will be available for one closed session meeting with staff and the City
Council.
BTI's fee for the assignment will not exceed $3,500. Delivery of five(5) copies of the
appraisal report and an electronic copy will be delivered within thirty(30) days following our
receipt of the City's executed contract for services.
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SCOPE OF THE APPRAISAL (Continued)
The following steps will be taken in arriving at our final estimates of value of the
subject property:
1) After receiving the assignment, a preliminary search is made to determine market
trends and other significant factors pertinent to the subject property.
In order to develop credible assignment results, this appraisal includes research
and analysis of property characteristics, taxes, zoning,restrictions and
encumbrances.
The Cost Approach includes research and analysis of comparable sales of land or,
in their absence, a conclusion of land value from the extraction methodology,
replacement costs,construction costs., physical, functional and economic
depreciation.
The Income Approach includes research and analysis of markettr ends.vacancy
rates,new construction, rate of absorption, collection loss.. income and expense
analysis, including the direct capitalization approach.
The Sales Comparison Approach includes research of market trends,new
construction, absorption, marketing and exposure time, comparable sales and
analysis of sale comparables.
e.
Data systems we utilize include,but are not limited to, the following:
NDC data,provided by National Data Collective, is a comprehensive on-line
database which provides information on sales,property data,FEMA flood map
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.
Marshall Valuation Services,provided by Marshall &Swift, is the industry-
standard provider of up-to-the-moment construction cost data worldwide. We
subscribe to the computerized versions of the Commercial Estimator and the
Residential Estimator, both of which are detailed cost estimating systems that are
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driven by the zip code of the property, allowing for refinements of current
conditions in a particular neighborhood.
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.
2) A physical inspection of the subject property will be performed. However,the
appraiser is not an expert in such matters as pest control, structural engineering,
hazardous waste, soil slippage, electrical, plumbing,roofing, foundation systems,
etc., 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.
3) The appraisal report will be completed in accordance with requirements dictated
by the Uniform Standards of Professional Appraisal Practice 2010-2011 (!_�L,The
Appraisal Foundation. This report will include such data and information needed
to lead the reader to a similar estimate of our market value conclusion.
41 The Dictionary of Real Estate Appraisal, 5th Edition, as published by the Appraisal
Institute, is the source of all definitions that will be used in the appraisal report,
unless otherwise noted.
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EXHIBIT "B"
Fee Policy
Ben F. Tunnell 111, Chaiiirian $395
John J. Giffey, President $310
William Kasper, Senior Vice President $300
Megan O'Rourke, Vice Chairman $300
Senior Appraiser $285
Appraisers $235
Researchers $150
Administrative/Secretarial $ 45
If you wish to name us as an expert witness in pending litigation, and we
accept, we do charge a nonrefundable retainer of$1000 irrespective of any work
being required. Any work performed on the assignment will, however, be billed
against this retainer.
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