HomeMy WebLinkAboutContracts & Agreements_245-2006_CCv0001.pdf SMOTHERS APPRAISAL
James Smothers,MAI,ASA,SRA,SRAVA 1881 Commercenter Drive East,Suite 206
Appraiser-Consultant-Commercial-Residential
San Bernardino,CA 92408
Phone:(909)890-9626 Fax:(909)890-9605
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October 27, 2006
Tamara Alaniz, Assistant Planner Phone: 909-798-7555
City of Redlands Fax: 909-335-4779
RE: Appraisal of 1.34 acres vacant land. Assessor Parcel
Number: 0168-571-72
Date of Value: Current
Dear Ms. Alaniz:
Reference your request for an appraisal of the property noted. Thank you for your consideration.
Our firm is dedicated to client service, integrity and ethical values. We specialize in complex
appraisals, litigation, condemnation and trust matters, and are experienced in expert witness
testimony and appraisal of a wide variety of properties.
SCOPE OF INVESTIGATIONS
Based on our understanding of the assignment, we will conduct the appropriate investigations as
applicable and necessary to comply with requirements as defined in the ("niform Standards of
Professional Appraisal Practice (USPAP). Note that if the appraisal is to be used for loan
purposes, and the lender is a Federally regulated lender, the appraiser must be engaged by the
lender. It is anticipated the report will not include a Business Valuation, Subdivision Analysis,
Partial Ownership Interest Valuation, Furniture, Fixture and Equipment Valuation, Feasibility
Analysis, Mineral Rights or Market Study.
We are prepared to begin this assignment immediately. Upon your authorization and receipt of
all requested documents, we will begin the appraisal assignment.
This assignment will consist of meeting and conferring with you and/or your designated contacts,
in order to determine the overall appraisal requirements. It will entail an inspection of the subject,
selection and analysis of comparable sales data. We will provide a summary written report and/or
verbal consultation with you and/or your legal counsel. Total fees are $3,000 for this
assignment. We estimate completion within 30 days from the date we are authorized to
proceed.
ADDITIONAL SERVICES AND CHARGES
This proposal includes initial Meetings with agencies, Owners or representatives, but excludes
follow-up meetings, court preparation, proceedings and/or consultations, depositions and/or
witness time. Retainers will be required for these charges, to be paid in advance. Should 1, or a
member of my staff be required by you or any other individual or agency, to do additional work,
to testify or discuss the subject or comparable properties, either as an expert or percipient
witness, regarding the current and/or subsequent matters, upgrade or update the report, and/or
attend any public or private hearing or meeting, you agree to pay our fee, at the hourly rate
prevailing at the date of requirement. Naming as Expert Witness: $500 non-refundable fee. For
court cases, all fees must be paid in full, plus an additional retainer prior to deposition and/or
courtroom testimony. If the retainer proves to be insufficient, an additional retainer will be
requested. Any funds remaining after completion of the assignment will be refunded to the
client.
Additional work requested by you, your counsel or agent will be charged at the rate prevailing at
the time the charge is incurred. Consultations are billed at a minimum of 15 minutes, per
contact. Report updates ivithin one year of the original report are based on our fee schedule at
the time of update, less a 25% discount. Updates over one year are based on our fee schedule at
the time of update, less a 15% discount. Periodic billings will be submitted for work completed
and out-of-pocket expenses incurred to that point. The balance, if any, is due and payable
immediately and is considered delinquent after 30 days. Unpaid balances, will bear interest after
30 days, which you agree to pay, at the rate of 1.5% per month, from the date due, and payable
until paid. If this rate should exceed any legal limit, the interest is hereby amended to conform to
the limit. If collection is necessary, then you agree to pay the reasonable cost and fees of said
collection, including collection agent and attorney's fees. The final report will be delivered in
two original copies. If additional copies are needed, the cost is $100 each.
In addition, we are to be reimbursed for any and all out-of-pocket expenses such as, but not
limited to engineering costs, City. County or agency licenses. fees or costs, zoning or other maps,
aerial photographs, court exhibits, copies of deeds or other' documents, title company charges,
copies of deposition and/or trial transcripts and necessary travel or living expenses. These fees
are subject to change, and will be billed at the rate prevailing at the time the charge is incurred.
HOURLY FEE SCHEDULE,OCTOBER,2006
Senior Appraiser: $175.00 per hour
Associate Appraiser: $ 90.00 per hour
Field Assistants: $ 60.00 per hour
Administrative: $ 35.00 per hour
Testimony: $350.00 per hour(Minimum 4 hours. Includes Court,
Hearings and/or Depositions and driving time).
Naming as Expert Witness: $1,000 Non-Refundable Fee.
*Note, All fees are subject to change and are in addition to expenses, such as travel and lodging.
All fees must be paid in advance of Court Appearance, Testimony and/or Depositions.
Resolution of disputes or controversy arising under or relating to this agreement, and/or any
amendments hereof, shall be determined and settled in the courts of San Bernardino, California.
Should the assignment be canceled after work has commenced, a cancellation fee will be
charged, based on the percentage of completion as of the date of cancellation. Note that
approximately 2/3 of the total fee covers the field work, analysis, and verbal estimate of value.
A lien is hereby granted and it is expressly agreed that this contract creates a lien, to the extent of
Appraiser fees incurred, against the property and/or any claim, case, or cause of action and
proceeds from any settlement or judgment, however obtained; Client hereby expressly assigns to
the Appraiser said fees that may become due and payable in settlement of this matter or through
judgment or otherwise.
I certify that, to the best of my knowledge and belief, that we have the capacity and demonstrated
expertise to meet the terms of the proposed engagement; and that the report will be prepared in
conformity with the requirements of the Uniform Standards of Professional Appraisal Practice,
and the Codes of Professional Ethics and Standards of Professional Appraisal Practice of both the
Appraisal Institute and the American Society of Appraisers.
Our proposal is based upon your description of the assignment. If subsequently it is determined
that a more extensive analysis, or report is required, we reserve the right to revise the fee and/or
proposal. The report will be subject to Assumptions and Limiting Conditions typical in the
appraisal industry. Unless otherwise stated, we will assume the property is free of
contamination. A revelation that contamination exists, would invalidate our analyses and be
cause for re-negotiation of the fee. Any liability incurred from the report is limited to the amount
of fees paid. Passage of 30 days from the report date is considered as evidence the client has
reviewed and accepted the report.
Your approval of this engagement authorizes James Smothers, or his designates to review and
copy any information in governmental or other agency files relating to the subject property,
including, but not limited to: building records, plans, property characteristics, permits, operating
statements, sales, costs, financing or other information as to how the property was valued.
We are prepared to begin research for the report upon receipt of all information requested and
a letter of engagement. At your option you may sign and return this contract, specifying the
fee and the terms of the agreement. Failure to return all data requested will delay the report. The
preceding appraisal fees are based on your description of the assignment. Significant differences
in the assignment will be subject to additional fees. This proposal is subject to change as
additional assignments are received. This bid proposal will expire in ten days.
Respectfully Submitted,
James Smothers, MAI, ASA, SRA, SWWA
Certified General Appraiser AGO02102
The City of Redlands hereby agrees to the preceding terms and conditions.
City of Redlands:
Jotx Harrison
Mayor
Attest:
Lorrie P,6yzer
City,derk