HomeMy WebLinkAboutContracts & Agreements_57-2014_CCv0001.pdf APPRAISER'S CONTRACT
PROFESSIONAL SERVICES AGREEMENT
This agreement for professional property valuation services ("Agreement") is made and
entered into this 3'day of April, 2014 ("Effective Date"), by and between the City of Redlands, a
municipal corporation("City")and Epic Land Solutions,Inc.("Consultant").City and Consultant are
sometimes herein individually referred to as a"Party" and, together, as the"Parties."
RECITALS
A. City is considering the acquisition of certain parcels of real property located in the
City of Redlands for storm flow basin purposes (the "Project"), which are more particularly
identified in Exhibit"A,"attached hereto and incorporated herein by this reference(collectively,the
"Property").
B. City is required to have a fair market appraisal of the Property in order for City to
(1)establish an amount that it believes to be just compensation pursuant to California Government
Code section 7267.2(a)before the initiation of negotiations with the Property oxNners,and(2)in the
event that the City Council elects to adopt a Resolution of Necessity to acquire the Property, to
establish the amount of probable compensation pursuant to California Code of Civil Procedure
section 1255.010 prior to obtaining an Order of Possession.
C. City requires professional property valuation consulting services(the"Services")for
the above purposes. The scope of the Services to be provided by consultant is more specifically
identified in Exhibit"A." attached hereto and incorporated herein by reference.
Therefore, in consideration of the mutual promises contained herein, the Parties agree as
follows:
AGREEMENT
1. Purpose and Use of the Appraisal. In the event that the City Council elects to adopt a
Resolution of Necessity for the acquisition of the Property by eminent domain,the fair market value
appraisal and a"written statement of, or summary of the basis for the appraisal"are required by the
California eminent domain law in order that City may determine the probable amount of
compensation as required by Code of Civil Procedure section 1255.0 10 et seq.
Appraisal Format and Required Summary. Consultant shall prepare and deliver
complete appraisals and summary reports in compliance with the Uniform Standards of Professional
Appraisal Practice(USPAP) and California eminent domain principles.
3. Personal Nature of Contract. Consultant's obligation to provide the Services to City
is personal in nature, and may not be delegated without City`s prior Xvritten consent.
4. Consultant's Insurance to be Primary. Except for Workers' Compensation and
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Employer's Liability insurance, all insurance required by this Agreement shall be maintained by
Consultant during the term of this Agreement, and shall be primary with respect to City and non-
contributing to any insurance or self-insurance maintained by City. Consultant shall provide City
with Certificates of Insurance and endorsements evidencing such insurance prior to commencement
of the Services.
4.1 Workers' Compensation and Employer's Liability
(a) Consultant shall secure Workers Compensation and Employer's Liability
insurance for its employees pursuant to California Labor Code sections 3700 and 1860, and in
amounts which satisfy statutory requirements with an insurance carrier acceptable to City. The
insurance policy shall include a provision prohibiting cancellation of the policy except upon thirty,
(30) days prior written notice to City.
(b) Consultant waives all rights to subrogation against City,its elected officials,
officers and employees for losses arising from work performed by Consultant for City by also
waiving Consultant's immunity for injuries to Consultant's employees. Consultant agrees that the
obligation to indemnify, defend and hold harmless provided for in this Agreement extends to any
claim brought by,or in behalf of,any employee of Consultant. This waiver is mutually negotiated by
the Parties. This Section shall not apply to any damages resulting from the sole negligence of City,
its agents and employees. To the extent any damages referenced herein were caused by,or resulted
from.the concurrent negligence of City,its agents or employees,the obligations provided herein to
indemnify,defend and hold harmless are valid and enforceable only to the extent of the negligence of
Consultant, its officers, agents and employees.
4.2 Comprehensive General Liability Insurance. Consultant shall secure 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, I
. property damage and personal injury is required. The insurance policy shall include
provisions prohibiting cancellation of such policies except upon thirty(30)days prior written notice
to City.
4.3 Professional Liability lnsurqnce. Consultant shall secure professional liability
insurance in the amount of One Million Dollars ($1,000,000) per claim made.
4.4 Business Auto Liability Insurance. Consultant shall secure business automobile
liability coverage with a minimum limit of One Million Dollars ($1,000,000) per occurrence,
combined single limit for bodily injury liability and property damage liability. The coverage shall
include all Consultant-owned vehicles,hired and non-owned vehicles and employee non-ownership
vehicles used in connection with the Services.
4.5 Assignment and InsuranceRe ti�irerne�ms. Consultant is expressly prohibited from
subletting or assigning any of the Services without the express prior written consent of City.
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Indemnification. Consultant shall indemnify,defend,and save harmless City,and its
elected officials. officers, agents, and employees, from any and all claims and losses accruing or
resulting thereto.that arise out of the claimed negligence,or willful misconduct,of Consultant in the
performance of the Services. Consultant's obligations under this Section 5 shall survive any
termination of the Agreement.
6. Independent Contractor.Consultant.and the agents and employees of Consultant,in
the performance of the Services shall act in an independent capacity and not as officers or employees
of City.
7. Duty of Care. Consultant shall perform the Services in a careful, diligent, and
professional manner and shall be solely responsible for negligence, errors, and omissions for
Services performed by Consultant,and its employees,and agents under the terms of this Agreement.
8. Availability of Financial Documents for Inspection and Audit. Consultant shall
maintain all books, documents, papers, accounting records, and other evidence pertaining to costs
incurred for the Services and shall make all such materials available for City's inspection at any
reasonable time during the term of this Agreement,and for three(3)years from the Effective Date of
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this Agreement.
9. Commencement of Work. Consultant shall commence the Services upon receipt of a
written notice to proceed from City. This Agreement will be considered terminated upon completion
of the Services by Consultant,or upon termination pursuant to paragraph 17 by City. City assumes
no liability for Services performed or costs incurred by Consultant prior to the Effective Date or
subsequent to the termination date of this Agreement.
10. Consulting Fee. City agrees to pay Consultant a total sum not to exceed Twenty
Seven Thousand Seven Hundred Seventy Two Dollars($27,772)for the Services,in accordance with
the rate schedule attached hereto as Exhibit"B" and incorporated herein by reference.
11. Pavrnent Terms.
(a) Payment on Invoice. Consultant shall submit monthly invoices to City
describing the Services performed during the preceding month. Consultant's invoices shall include a
brief description of the Services performed,the dates the Services were performed,and a description
of reimbursable expenses,if any. City shall pay Consultant no later than thirty(30)days after receipt
and approval by City of Consultant's invoice, provided the Services reflected in the invoice were
performed to the reasonable satisfaction of City in accordance with the terms of this Agreement,and
that all expenses, rates and other information set forth in the invoice are consistent with the terms
and conditions of this Agreement.
(b) Withholding),of Final Payment. Consultant agrees that.in no event,shall City
approve or be required to pay any sum payable hereunder prior to receipt by City of all final
documents in acceptable form and content,as required by this Agreement as described herein. Final
payment shall be made not later than seventy-five(75)days after presentation of final documents by
Consultant and acceptance thereof by City.
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(c) Payment for Changes in Orders. If changes in the scope, character, or total
cost of the Services are made necessary by reason of written instructions from City, City and
Consultant shall negotiate an amendment to this Agreement mutually acceptable to the Parties.
(d) Payments for Updating Reports or Services. Payments for updating any report
or service by Consultant,when requested in writing by City and not included in Consultant's scope
of Services, shall be submitted for reimbursement in accordance with paragraph I I(a) of this
Agreement.
12. Duty of City to Supply Data. agrees City to provide Consultant the following:
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(a) Copies of maps, preliminary reports of title, geometries and designs, and maps,
together with any other data within the possession of the City reasonably needed to complete the
Services and requested by Consultant in writing.
(b) Such information,as requested by Consultant,as is generally available from City files
applicable to the Project.
(c) Assistance,if necessary,in obtaining information from other governmental,agencies.
However,it shall be Consultant's responsibility to make initial contact with respect to the gathering
of such information.
13. Notification of Owner. Consultant is required to give the Property owners, or their
designated representatives,an opportunity to accompany Consultant during the initial inspection of
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the Property. This notice shall be in the form of a written letter to such owners.
14. Notices. Any and all notices, demands, invoices, and Written communications between the
Parties shall be addressed as set forth in this paragraph. The below named individuals furthermore
shall be those persons primarily responsible for the performance by the Parties under this Agreement:
CITY: CONSULTANT:
Chris Dugs Lynette Overeamp, Vice President
J-
35
Cajon Street, Suite 15A 2601 Airport Drive, Suite 115
P.O. Box 3005 (mailing) 'Torrance, CA 90505
Redlands CA 92373-1505 (9-5 1) 321-1800
(909) 798-7658
Any such notices,demands, invoices and written communications by mail shall be deemed to have
been received by the addressee forty eight(48)hours after deposit thereof in the United States mail,
postage prepaid and properly addressed as set forth above.
15. Confidentiality. Consultant understands and agrees that this Agreement, the consulting
Services.,conclusions,and appraisal reports are confidential in nature. Neither the appraisal reports
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nor the opinions therein shall be disclosed to anyone other than City's Attorney or special counsel,or
City staff assisting legal counsel. The appraisal reports,together with any other documents required
by this Agreement,shall be submitted to the City Attorney or special counsel in the same manner as
notices are given as required by paragraph 14,except that appraisal reports shall be delivered either
personally, or by Federal Express by delivery requiring a delivery signature, or by U.S. Postal
Express mail by delivery requiring a delivery signature. Consultant understands and agrees that
his/her duty of confidentiality does not terminate upon the termination of this Agreement.
16. Dumber of Copies of Appraisal Reports and section 1255.010(b)Statements to be Delivered.
Consultant shall deliver three (3) copies of the Appraisal Report and the Code of Civil Procedure
section 1255.010(b)Appraiser's Statement of the Basis for the Appraisal required by this Agreement
17. Termination. This Agreement may be terminated by City upon five (5) days prior-written
notice to Consultant. In the event that this Agreement is so terminated, Consultant shall be
compensated on a pro rata basis with respect to the percentage of the Services completed as of the
date of termination. Consultant shall provide to City any and all documents, diaries, data, studies,
surveys, drawings. maps, photographs, and reports, whether in draft or final form, prepared by
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Consultant as of the date of termination. Tennination of this Agreement pursuant to this paragraph
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shall not terminate the obligation of confidentiality set out in paragraph 15 herein.
18. Dispute Resolution. Any dispute arising from a question of fact in connection with this
Agreement shall be resolved in accordance with the Government Code provisions governing claims
against public entities.
19. Attorneys' Fees. In the event any action is commenced to enforce or interpret the terms or
conditions of this Agreement the prevailing Party shall, in addition to costs and any other relief,be
entitled to recovery of its reasonable attorneys' fees,including fees for use of in-house counsel by a
Party.
20. Written Agreement Contains the Entire Agreement. This Agreement supersedes any and all
other agreements, either oral or in writing, between the Parties with respect to the subject matter
hereof. Each Party to this Agreement acknowledges that no representation by any Party that is not
embodied herein nor any other agreement, statement, or promise not contained in this Agreement
shall be enforceable and binding. Any modification of this Agreement shall be effective only if it is
in writing and signed by all Parties.
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IN WITNESS WHEREOF,the Parties hereto have executed this Aggreement as of the day and
year first set forth above.
CITY OF REDLANDS
By: -� By: `
Tina Kundib,Finance Director Lynette Overcarap, Vice President
ATTLS`I`:
By:
Sam Irvift tty 'Ierl
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EXHIBIT "A"
SCOPE OF SERVICES
Consultant will provide the following:
Property appraisals for the following parcels:
0 �WNT 0299-041-01
0 APN 0299-041-13
0 APN 0299-041-08
• Upon mutually agreed approval of appraisals by City. conduct all negotiations with the
property owners of the listed parcels including, but not limited to conducting business with
escrow and title companies, coordinating activities with other consultants and other
miscellaneous parties to minimize disruptions and delays.
The following general procedures will be utilized in the performance of the appraisal work.
1. Property will be appraised in accordance with the Uniform Acquisition Act, USPAP and
Title 25, California Code of Regulations.
2. Prepare a complete self contained tabbed appraisal report for each of the three parcels in
triplicate valuing the properties.
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3. The reports shall conform to the requirements promulgated by the Appraisal Foundation and
known as the Uniform Standards of Professional Appraisal Practice,which are effective at
the time the report is delivered to the City.
4. The reports shall be prepared in conformity with the Eminent Domain Law and interpretive
cases. Consultant will complete an Appraisal Summary Statement including the attachments
using a form provided or approved by the City in order to comply with the requirements of
California Government Code, Section 7267.2.
5. The reports will contain the following: all real estate items(land,buildings,and appurtenant
on-site improvements),exclusive of non-realty fixtures,equipment and business inventory;
pertinent property data;a date of value;discussions and conclusions ofhighest and best use:
a narrative explanation of approaches to value; summaiy, and tabulation of market data,
analysis of market data and conclusions of value, including severance damages where
applicable.
6. The appraiser will attend a"scoping session"meeting with the City,submit a draft report and
attend a pre-submission conference with City staff, if required by staff.
7. The appraiser will be available to testify in depositions or as an expert witness in any case in
which such services would, in the City I s discretion, be required. Any such services will be
billed on a time and material basis as approved by the City.
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8. Nothing contained in this Scope of Services shall be construed as relieving the appraiser
from the performance of any work and/or inclusion of any item in the appraisal report that
would otherwise be required for sound appraisal practices.
• Negotiation and Acquisition: Consultants acquisition services and procedures for public
works projects are presented below. These procedures assure that property and interests in real
property are acquired in accordance with applicable State and/or Federal guidelines and City
policies. Specific City procedures for reporting, coordination, etc., are incorporated into these
general procedures to ensure that the City's goal and requirements are achieved.
1. Consultant will review title reports and appraisal reports in sufficient detail to prepare for
negotiations with property owners and other parties to acquire interests in the real property to
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be acquired.
2. A complete and separate file for each parcel will be prepared and maintained. It will include
a Parcel Diary of all pertinent information and contacts made relative to the acquisition
negotiations.
3. All offer letters,"Notices of Intent,"appraisal summary statements,acquisition agreements,
deeds, legal descriptions, plats, copies of"The Public Acquisition Process" and any other
required real property acquisition documents will be prepared in accordance with the City's
procedures.
4. Consultant acquisition agents will set appointments with the appropriate parties for
presentation of the formal written offers.
5. The acquisition agents will contact and negotiate in"good faith"with each property owner,
their agent or representative, tenants or lessees at appointed times convenient for them to
present offers and explain the acquisition process. Negotiations with out of state or out of
area property owners will be conducted only via mail, telephone, or e-mail.
6. Receipted copies of offer letters and appraisal summary statements or the agents certification
of the tender of said offer will be promptly delivered to the City.
7. The project manager will coordinate and manage the acquisition process with the City,legal
counsel,the escrow company, the City's engineer and the appraiser.
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8. The project manager will coordinate and manage the acquisition process with the acquisition
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agents,the property owners and the City; and maintain project status and progress tracking
reports.
9. The project manager will promptly transmit all executed documents(acquisition agreements,
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etc.) to the City for acceptance and processing. A report summarizing the pertinent data
relative to the transaction will be included. The project manager will coordinate opening of
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all escrow's monitor same,assist the escrow company in obtaining additional documentation
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as necessary-, supervise the closing of all escrow's and review all closing statements for
completeness and accuracy.
10. The project manager will serve as liaison between the title company,escrow holder and the
City.
11. The project manager will prepare and deliver a written monthly progress report of the status
of the acquisition of each parcel; and verbally communicate regularly with the City.
12. The project manager will monitor and report progress of the project.
13. The project manager will recommend condemnation action when negotiations have reached
an impasse. The required justification will be submitted in writing to the City. Assistance to
the City's legal counsel will be provided as necessary. However,Consultant's pritnaij,goal
will be to reach a successful acceptance of the offer with each property owner. The project
manager will work with the City and its legal counsel in recommending solutions to achieve
acceptance of the offer.
14. Consultant will provide condemnation support as directed. At such time that negotiations
reach an impasse and eminent domain proceedings have commenced, Consultant will
provide coordination and assistance necessary to aid the condemnation counsel on a time and
material basis.
15. The project manager will deliver completed original acquisition files with all pertinent
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information including the Parcel Diary and all notes to the City at the conclusion of the
Project.
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EXHIBIT
Epic Land Solutions,Inc.
City of Redlands-Citrus Blvd,Appraisal and Acquisition Services
Acquisition Sery Ices and Utility Relocation Fee Schedule
February 13,2014
Karen Starr Gary peck Jackie Franks Kari De La Cruz Unda Rodriguez
Fully Loaded Hourly Rates $143.41 $170.46 $107.96 $62.84 $70.00
Acquisition Services: Total Total per
Hours Task
Project Management 25 25' $3,585,
Preliminary Title Report oversight 1 3 4'=- $273'
Appraisal Review-Analysisand 26 26 $4,432',
Report Preparation(assumes 3)
Appraisal Oversight 4 8 12 $811
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Negotiation/Acquisition 60 15 8 83- $7,984',
Escrow Services 9 9- $566
SUBTOTAL 25 26 60 29 14 $17,647
Other Direct Costs
Title Reports(Assumes-3 @$700 Each) $2,100'
Appraisals $7,7001
Mileage $250
Postage/Overnight Packages $75
SUB TOTAL ODCs $10,125
TOTAL ACQUISITION&UTIUTY RELOCATION SERVICES $27,772
Task Assumptions: _
Assumes three title reports wi#I be obtained. Litigation Guarantees are not included.
Assumes three parcels will be acquired. Acquisition services will be provided fortwo offers(two parcels have common ownership}.
Assumes one person attwo team meetings.
Assumes no relocation services will be provided.
Assumes acgsuition services to be completed within eight months from Notice to Proceed.
Fees forthe preparation of an appraisal for a valuation trial are not included.
Litigation support,deposition,courttestimony and expert witness fees are additional,to be compensated on a time and materials basis.
Assumes a comR#ete se#f contained appraisal report will be provided for each of three parcels for a fee of$7,700;anotheroption is preparation
of a complete summary appraisal for each of three parcels for a fee of$5,500.
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