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HomeMy WebLinkAboutHARRY B. HOLZHAUER & ASSOCIATESAMTail i ZNDMZN,,T TO AGREZMENT, made and entered into this of November, 16, by and between the City Of Santa Ana, 99 -orporation# hereinafter referred to as "CITY"' and W ;tiolzhaider PC A380CI Har—J.1.&t6s, a partnership, hereinafter referred - .Z to as UAPPRAISM". Recitala; M 1%. CITTY and APPRAIM, entered into an Agreerent For Appraisal of Real :--roDerty, dated Octobor 23? 1995, for the valuation of six Parcels of real property required for the widening of ari:--tol Gt-raiat bet -wtan Elm Street and Santiago Creek. After co=fanclng work u4ndtr said Agreement, APPRAISL ear-naed that one of said six pa-rce.19 t specif ically A. P, No. 001-3 03 - ol- invol7ed unanti-ipated issues oal severance damages aid value of the remainder property, �scessitating more work and analysis than originAll-v contemplated '_V2 the parties to said Agreement. W,r,MFQRZ, in consideration Of their 'mutual covenants and I - to the terms agrgem anr- a hereinafter contained and made, and subjeQo_ and con%di t 4. -Ons ',^,e-_e0fr CITY and APPRAISER do hersbY agree that wiclo paragraph I of said Ag-reement is amended as Ifollows! The e "Sever. Thousand Five Hundred DollarS A& fig' gu -r is deleted and the figure "-Fifteen Thousand Dollars is sulDstitutsd in place thereof. fiT.Ire "Ton Thousand nollars ($10,000)" is delet ad and the liqur* "Twanty Six Thousand Seven l3-undrs4d and $2 6 j 71 , 00) is substitilted in place thereof, TES IMAL 14.4 rREOF, the parties hereto haya executed this Nagreement of the date abfirst hereinove set forth. jdgce C. GUY rjei-)� of the CoUnCil z APPROVE4 A TO FORK: ' Jogeph W. Fletcher city Attorney CITY bm, 1771'111� 14P HARRY HOLZ71HAU i ASSOCIATES by Ho1zhauer ORIGINAL AGREEMENT FOR APPRAISAL OF REAL PROPERTY 191 THIS AGREEMENT, made and entered into this day of Te"O,�Y'� 199 L by and between the City of Santa Ana, a municipal corporation, hereinafter referred to as "CITY" ;end HARRY HOLZHAUER & ASSOCIATES, a partnership, hereinafter referred to as "APPRAISER". W I T N E S S E T H Recitals: 1. CITY proposes to acquire certain interest in real property in the City of Santa Ana for the widening of Bristol Street between Elm Street and Santiago Creek, hereinafter referred to as "THE PROJECT", and desires APPRAISER furnish certain services with respect to such property, including an appraisal thereof. 2. APPRAISER represents that he is fully qualified to perform such services. 3. The services provided under this agreement are necessary in furtherance of the street widening project in the City of Santa Ana. WHEREFORE, in consideration of their mutual covenants and agreements hereinafter contained and made, and subject to the terms and conditions hereof, the parties hereto do hereby agree as follows: I. SCOPE OF SERVICES A. Property to be Appraised The estates or interest in the realty to be appraised shall be described in the title report which shall be sent by CITY to APPRAISER after the execution hereof by CITY. Parcels to be appraised are listed in "Exhibit A (attached hereto and made a part hereof). A separate appraisal is to be furnished for each parcel, unless otherwise instructed by CITY. The date of completion for these appraisals shall be NOVEMBER 30, 1995, which is sixty (60) days. -1- B. Loss of Goodwill As used herein, "Goodwill" consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage. CITY has determined that there is no potential goodwill loss which would occur due to the street widening, therefore CITY does not request APPRAISER to appraise the value of the goodwill loss, and APPRAISER agrees not to provide such value. C. Purpose and Basis of Valuations 1. Purpose and Significance of Appraisals The appraisals to be furnished under this agreement are required by CITY for its guidance in making fair and impartial determinations of fair market vale and just compensation to be offered for each parcel. APPRAISER shall be guided by such objectives. The text of each appraisal report shall cover all matters germane to such required valuation findings and shall provide a full explanation of APPRAISER'S reasoning and analysis of the evidence of value. 2. Appraisal Standards APPRAISER shall beguidedby Caltrans Right of Way Procedural Handbook -Volume 7- Appraisals, issued by the State of California, Department of Transportation and shall also be -guided, by the California Code of Civil Procedure 123.010 et seq. (California Eminent Domain Law). The three standard approaches to value shall be considered and if not used, the reasons for their exclusion shall be included. 3. Concept of Value APPRAISER'S opinion of the fair market value shall be in accordance with the definition of concepts of value and the rules on admissibility of evidence of value under the Eminent Domain Law of the State of California. 4. Date of Valuation APPRAISER'S valuation shall be as of a date concurrent with the preparation of his report, unless CITY has specified in writing an earlier date of valuation. 5. Relocation Assistance and Payments APPRAISER'S analysis and opinions of property value shall not reflect any consideration or allowance for the relocation assistance and payments provided under State or Federal law. 6. Influence of Project on Property Value In forming opinions of the fair market value of any property, APPRAISER shall disregard any decrease or increase in the fair market value of property to be acquired (or the entire -2- property of the owner in the case of a partial taking) prior to the date of valuation caused by the public improvement or project for which the property is to be acquired, or by the likelihood that the property would be acquired for such improvement or project, other than that due to physical deterioration within the reasonable control of the owner. In the case of a partial taking, using the before -and -after method of valuation, APPRAISER'S opinion of value of the remaining not-to-be...a*quired portion of the property shall reflect any increase or decrease in value attributable to the Property. D. APPRAISER'S SERVICES APPRAISER Agrees; 1. Appraisals To appraise parcels and any improvements thereon listed on "Exhibit All, and prepare and deliver to CITY, within the time period specified in Section A hereof, written narrative appraisal report(s) in three (3) copies conforming to the provisions of this agreement. The appraisal(s) shall provide a separate value for outdoor advertising signs showing any value attributed to income and lease value. 2. Property Inspection To visit each parcel in order to inspect personally the land and all improvements and other elements of value thereon or belonging thereto, excepting only trade fixtures, equipment and furnishings. APPRAISER shall give the owner any opportunity, by reasonable advance notice in writing or otherwise, to accompany APPRAISER, during his detailed inspection of the property. If an owner of compensable interest in the property or a representative of such owner does not accompany APPRAISER during such inspection, APPRAISER shall include in his appraisal report a copy of his notification to such owner, certified by APPRAISER to have been delivered to such owner personally or by certified or registered mail not less than seven (7) days prior to his inspection of the property. In the process of inspecting property, APPRAISER shall, to the extent practicable, ascertain the rights of all parties in possession and note for consideration all factual information and comments furnished by the owner or his representative relevant to the appraisal. If APPRAISER'S inspection or investigation disclosed a sale of a portion of a parcel by an unrecorded contract of sale or otherwise, APPRAISER shall furnish separate reports for each separately owned portion of the parcel. If another appraiser is also to appraise the same property. APPRAISER may make his inspection with such other appraiser, but must otherwise prepare his appraisal report independently. -3- 3. Valuation Data To make such investigations, cost analyses, and property inspections as are appropriate to enable APPRAISER to achieve sound conclusions and to prepare the appraisal reports to be furnished under this agreement. 4. Valuation Methods To utilize appraised valuation method set forth in..Article I., E., 8., hereof. 5. Testimony in Judicial Proceedings To testify as an expert witness on behalf of CITY in any judicial proceedings involving any property appraised under this agreement. Such -services shall include such reasonable time as may be required for reinspection of the property, updating APPRAISER'S valuation, participation in pretrial conferences with counsel for CITY, and testifying in the judicial proceedings. The compensation for such testimony in judicial proceedings shall be determined in accordance with Article III., hereof. 6. Modification of Delivered Appraisal Reports To modify or furnish supplements to any appraisal report furnished hereunder, without additional cost to CITY, if (a) applicable principles of law with respect to the valuation of the property existing as of the date of this agreement require the modification or supplementing of such appraisal, (b) material omissions, inaccuracies, or defects in the appraisal report are discovered after delivery and acceptance of the report by CITY, or (c) APPRAISER receives or becomes aware of relevant information, in existence prior to the date when APPRAISER signed the report. If there is a significant delay between the date of valuation and the date of acquisition of any parcel or if the property has been materially changed since the appraisal, or if a revised determination of boundaries or the interest to be acquired, has been made, or if other good cause appears, APPRAISER shall, if requested by CITY, furnish CITY a supplementary report updating his valuation and the supporting data and analysis to a current date. The compensation for such updating of an appraisal shall be determined in accordance with Article III., hereof. 7. Retention of Appraisal Records To retain a copy of each appraisal report and all notes and records germane to the appraisal for five (5) years after delivering the appraisal report to CITY or until the property is acquired by CITY or its proposed acquisition of the property is abandoned, whichever is latest. -4- 8. Consultation with the City To advise and consult with CITY and its legal counsel regarding appraisal services performed and to be performed by APPRAISER as related to the properties involved in this agreement, at such time or times as may be mutually convenient for the parties to this agreement, without additional charge to CITY. APPRAISER shall initiate such consultations whenever APPRAISER is in doubt as to whether an element of property- is real or personal property or needs legal advice on any aspect of the appraisals to be furnished under this agreement. There shall be no charge by any party for such consultations. E. CONTENTS OF APPRAISAL REPORTS The appraisal report or reports to be furnished by APPRAISER to CITY in accordance with this agreement shall contain certain information and APPRAISER'S conclusions and opinions, together with the data and analyses by which they were derived, as set forth below. A separate report shall be submitted for each parcel listed on "Exhibit All. However, if APPRAISER is to appraise several parcels in the same general area, APPRAISER may also prepare and submit a separate overall report and data volume and use it as a data source and reference in the separate appraisal reports on the individual parcels. The appraisal report on each parcel shall consist of a cover sheet as provided in Article I., E.,- 1., below, followed by a report furnishing APPRAISERS opinions and conclusions and the data and analyses on which they are based. The appraisal report on each parcel shall include the following: 1. Appraisal Summary A cover sheet headed "Appraisal Report for (name of CITY)", which may be a printed form, completed to provide the following: a. Project name and number. b. Date of the report. C. Assessor parcel number, address of the property, and the name of the owner or owners. d. Date or dates of APPRAISER'S inspection of the property, including the name of each owner or representative of an owner who accompanied APPRAISER during his inspection and the interest held in the property or representative capacity of each such person. For each unrepresented owner, APPRAISER shall include in the narrative portion of the appraisal report the evidence of notification required by Article I., D., 2., of this agreement and any further explanation deemed appropriate. e. APPRAISER'S estimate of the fair market value of the property. -5- f. Any other fact or conclusion from APPRAISER'S report which CITY requests APPRAISER to include on the summary page. g. Any limiting conditions of the appraisal report. Any other appropriate assumption or limiting condition may be added if it has been specifically approved in writing by CITY. h. The certifications of APPRAISER (1) that APPRAI.S-ER personally made a thorough inspection of the property, (2) that, to the best of APPRAISER'S knowledge and belief, everything contained in the report is true and no relevant and important fact has been omitted, (3) that neither APPRAISER'S employment nor compensation is contingent on the valuation reported and (4) that APPRAISER has no past, present, or prospective interest (including that of real estate agent or broker) in the property, the parties involved, or any other interest that would conflict in any way with the services performed or the making of an impartial report. i. A certification that, in APPRAISER'S opinion, the fair market value of the property is (an amount to be stated) as of (the date of valuation determined in accordance with Article I., C., 4., of this agreement). j. The signature of APPRAISER. 2. OWNERSHIP The name(s) and address(es) of the owner(s) of the property. 3. DELINEATION OF PROPERTY The street address of the property and an accurate legal description of the real property and the interest therein appraised, together with a plot plan of the real property and any and all improvements thereon. The property delineation shall specifically exclude and describe any separately held interest in the real property, which under the definition of "parcel" in Article I., A., is to be appraised and acquired either separately or as an appurtenance of another parcel to be acquired. The description shall also specifically exclude all separately held interests which are not to be acquired and will not be affected adversely by CITY'S Project. If there are any separately held interest in a parcel, such as leaseholds, tenant -owned improvements, life estates, easements, and water, gas, oil, or mineral rights, furnish a description of each separate interest comprising part of the property appraised and the name of its owner. 4. INVENTORY OF IMPROVEMENTS An inventory identifying each building, structure, or other improvement. The ownership of any improvement by anyone other than the landowner shall be identified on the inventory. 5. IMPROVEMENT ANALYSIS If the interior of this improvement cannot be inspected at the time of the original appraisal, the appraisal repor..t.-shall verify the lack of access and the diligent effort made to obtain access; and CITY shall be notified prior to compiling the appraisal report. Buildings, structures, and other improvements, shall be identified and classified as to ownership and type of property as follows: a. Ownership. (1) Owner of the land. (2) Each tenant in occupancy. b. Type of property. (1) Building, structure, or other improvement. (2) The amount of real estate taxes for the current year and the assessed valuation stated separately for land and improvements. (3) If any building, structure, or other improvement is not to be acquired, will not be adversely affected by CITY'S Project, and will not be required by CITY to be removed, such as a pipeline in an easement not to be acquired, such improvement shall be identified as excluded from the appraisal. 6. PROPERTY DATA Description of the property, including information pertinent to the appraisal with respect to such matters as: (a) the zoning and any restrictive covenants, conditions, or servitudes affecting the available use or occupancy of the land; (b) the use and occupancy of the property at time of appraisal; (c) the freedom of the property from or susceptibility to special hazards; (d) a description of the fixtures, and other equipment, if any, appurtenant to the land, and germane to the value of the real property. The report shall also include such exterior and interior photographs as are appropriate as part of the description of the property. 7. LEGAL AND TITLE MATTERS AFFECTING VALUE Report of any official citations or personal observations by APPRAISER of any condition or occupancy of the property in violation of law and any other legal or title matters affecting the available lawful uses or the value of the property. -7- 8. PROPERTY VALUATION AND APPRAISAL The opinion of APPRAISER as to the fair market value of the property. The appraisal report shall contain a description of the reasoning process used by APPRAISER in reaching conclusions as to value and all data and analyses needed to explain and support his valuation. The supporting data and analyses furnished in the appraisal report shall include, among other things the following: a. All other information, analyses, and estimates considered by APPRAISER to be relevant to the estimation of the fair market value of the property. Included shall be a statement of all factors taken into consideration by APPRAISER believed to influence, either favorably or unfavorably, the market value of the property. b. If the property appraised is a part of a larger parcel in the same ownership or is less than the entire interest of the owner in the property, the appraisal report shall contain APPRAISER'S opinion of just compensation for a taking of such property or interest, using the before--and-after method of valuation as interpreted under State law unless it is obvious that there would be no damages or benefits to the remaining property or interest of the owner. However, if the part of interest to be taken is such a small part of the whole property that the damages for the taking can be more accurately estimated directly that method may be used if permitted under State law, without estimating the fair market value of the entire property of the owner. The foregoing opinions of APPRAISER shall be supported in the appraisal report by the data an analyses used to reach such conclusions. The appraisal report shall also contain, for information purposes only (unless required by State law), APPRAISER'S estimates of the fair market value of the to -be - acquired part or interest as part.of the whole property and the net damages or benefits to the remaining property of the owner. if, in the opinion of APPRAISER, acquisition of the part of, or interest in, the property proposed for acquisition would leave the owner with an uneconomic remnant, APPRAISER shall furnish a separate estimate of the fair market value of the entire property and interests of the owner unless informed by CITY that it does not have authority legally to acquire the remnant. C. Such maps, plans, photographs, or other exhibits, as necessary, to explain or illustrate the analyses of APPRAISER. d. APPRAISER'S evaluation of the indications of value deduced from APPRAISER'S separate analyses of the various evidences of value and an explanation of how the final conclusion to the fair market value of such property was reached. 9. ADDITIONAL FINDINGS IN CERTAIN CASES Additional conclusions, if applicable, as follows: a. Separate Held Interests If there are separately held interests in the real property to be acquired, such as easements, leaseholds, air rights, life estates, and oil, gas, or mineral rights, and the division of ownership is not of such character as to destroy the practical unity of the property, APPRAISER shall apportion his therein to be acquired to each separately held interest. The report shall contain the data, analyses, and reasoning by which APPRAISER made the apportionment. If the "unit rule" is regarded as not applicable because the division of ownership is such as to diminish the fair market value of the property as a whole, the separate interests involved shall be appraised separately. b. owner -occupant in a Multifamily or Mixed - Use Pro ert If the property is a multifamily or mixed -use (residential and nonresidential) property and the owner of a compensable interest therein, as defined in the next sentence, occupies a dwelling in the property, APPRAISER shall furnish an apportionment of the estimate of the fair market value of the whole property to such dwelling, or to each such owner occupied dwelling if more than one, and to the remainder.of the property. For the purpose of this paragraph, an occupant of a dwelling shall be considered to own a compensable interest in the property if he holds fee title, a life estate, a 99--year lease, or a lease with not less than 50 years to run from the date of valuation, or holds an interest in a cooperative housing project which includes the right of occupancy of a dwelling unity therein, or is the contract purchaser of any of the foregoing estates or interests, or has a lease -hold interest with option to purchase. APPRAISER'S report shall explain how such apportionment was made and the rationale therefor. C. Loss of Goodwill If City has requested APPRAISER to appraise the loss of goodwill to a business enterprise resulting from CITYOS acquisition, APPRAISER shall include in the appraisal report, or in any other appraisal report submitted to CITY where such appraisal is made after the appraisal report described above is submitted to CITY, the following: (1) APPRAISER'S estimate of the goodwill value of the business including the figures and calculations upon which such estimate is based. (2) The availability of alternative sites upon which the business could be relocated. (3) The estimated loss in goodwill value to the business enterprise resulting in operating at an alternative site, or of closing the business when no alternative sites are feasible. MM (4) The amount of relocation payments or other payments which will be made by CITY to the business operator which will offset the goodwill loss which the business operator would otherwise suffer. (5) APPRAISER'S final determination of the value of the loss of goodwill resulting to the business. II. ASSISTANCE,_ DATA AND INFORMATION TO BE PROVIDED BY CITY City agrees to furnish the following: A. Parcel Map A map or plat, based on official records, of the property listed on "Exhibit All showing the boundaries and dimensions of the parcels to be appraised. Each parcel shall be designated by number, and the parcel number shown on APPRAISER'S reports shall correspond to the parcel numbers shown on the map or plat, except that additional parcel numbers may be assigned by APPRAISER for easements appraised separately or for additional parcels revealed while making the appraisals. B. Ownership Data An ownership data report for each parcel, which report shall show all estates and interests in the parcel as shown of record but shall not be assumed to define the interest to be appraised or any separation of interests for appraisal purposes. The ownership data report on each parcel as shown on the parcel map shall include: 1. The name (and, if know or shown of record, the address) of the ostensible owner as it appears of record; 2. The legal description of the parcel as shown by the conveyance or conveyances or other instrument by which the record owner acquired title; 3. Identification of the conveyance or conveyances, or other instrument by which the present owners of the real property acquired title, including: the date thereof, the date, book and page numbers, and place of recordation; the name (and, if known or shown of record, the address) of the grantor of such conveyance; the amount of any mortgages or encumbrances placed of record or to which title was subject at time of conveyance (so far as determinable from an examination of such conveyance). 4. Outstanding estates and other rights or interest of record, including easements, use restrictions, mineral rights, leases, and any known, but unrecorded, interests of other parties. C. Legal Advice Advice, upon request of APPRAISER, on legal matters affecting the appraisal of any property to be appraised. -10- III. COMPENSATION AND METHOD OF PAYMENT In consideration of the undertakings and agreements on the part of APPRAISER to be done and performed as contained in this Agreement, CITY agrees to pay to APPRAISER upon completion by APPRAISER of services to be provided hereunder and the submission to CITY of properly certified invoices therefor, a fee determined as follows: 1. For appraisal services and reports furnished by APPRAISER in accordance with Article I., D., 1., hereof and accepted by CITY, and for all other services furnished in accordance with Article I., D., hereof, except services furnished in connection with judicial proceedings as provided in Article I., D., 5., hereof and the updating of appraisals as provided in Article I., D., 6., hereof, CITY agrees to pay APPRAISER the sum of Seven Thousand Five Hundred dollars ( $7,500.00). APPRAISER shall be paid for valuation for goodwill, if APPRAISER actually values the goodwill loss pursuant to direction of CITY at the hourly rate specified in subparagraph 2 below but in no event to exceed the total sum of Ten Thousand dollars ( $10,000.00), for all services rendered in connection with this agreement. 2. For services furnished by APPRAISER in connection with judicial proceedings as provided in Article I., D., 5., hereof, (except services as an expert witness in such a proceeding), for the updating of appraisals as provided in Article I., D., 6., hereof, dollars (" per hour actually engaged in performing the services, including travel time, portions of hours to be prorated. Any and all expenses of APPRAISER, including, but not by way of limitation, travel expenses and subsistence, shall be borne by APPRAISER. 3. For services as an expert witness for CITY in judicial proceedings as provided in Article I., D., 5., hereof, with respect to any property appraised by APPRAISER pursuant to this agreement, the sum of dollars ($ ) for each full day's attendance in court. In the event such attendance shall be one-half day or less, compensation shall be made at the rate of dollars ($ <c) IV. TERMS AND CONDITIONS A. Representations and Agreements of APPRAISER As an inducement to the execution of this agreement by CITY and in consideration of the agreements to be performed by CITY, APPRAISER represents and agrees that: 1. Qualifications APPRAISER is qualified to perform the services to be furnished under this agreement and is duly authorized or -11- permitted by or under law to perform such services, and all personnel engaged in the work shall be so qualified and authorized or permitted to do the work they perform on behalf of APPRAISER. 2. Solicitation or Procurement of Agreement APPRAISER has not employed any person to solicit or procure this agreement and has not made, and will not make, any payment or any agreement for the payment of any commission, percentage, brokerage, contingent fee, or other compensation in connection with the procurement of this agreement. 3. Interest of APPRAISER and APPRAISER'S Employees APPRAISER does not have any interest (including that of real estate agent or broker), direct or indirect, present or prospective, in any property listed in "Exhibit All hereof or in the sale thereof, or any other interest, whether or not in connection with said property, which would conflict in any manner or degree with the performance of the services and the submission of impartial reports, and has not employed and will do employ, in connection with the services to be furnished hereunder, any person having any such interest, and until such property is acquired by CITY or excluded from its project or projects by resolution of its governing body, APPRAISER and all employees of APPRAISER, so long as they are employed by APPRAISER, will not acquire any such interests and will not, for their own account or for other than CITY, negotiate for any said property, perform services in connection with said property, or testify voluntarily as a witness in a condemnation or other proceeding with respect to such property. 4. Services to be Confidential; Conflict of Interest All services, including reports, opinions, and information, to be furnished under this agreement are confidential and shall not be divulged, in whole or in part, to any person, other than to duly authorized representatives of CITY, without prior written approval of CITY, except by testimony under oath in a judicial proceeding or as otherwise required by law. APPRAISER shall take all necessary steps to ensure that no member of his staff or organization divulges any information concerning such appraisals or services, except as provided above. For the duration of this agreement, APPRAISER will not act as a consultant or perform services of any kind for any person or entity other than CITY or the City of Santa Ana in regard to the Project without the prior written consent of CITY. 5. Facilities and Personnel APPRAISER has and will continue to have proper facilities and personnel to perform the services and work agreed to be performed hereunder. If APPRAISER proposes to employ any person or persons to make any appraisals of machinery and equipment or other specialized elements or attributes of a property appraised under this agreement, the employment of such person or persons for such purpose shall not place CITY under any obligation to such employee, nor relieve APPRAISER of full responsibility for the faithful performance of the services to be furnished hereunder. -12- 6. E ual Em to ment opportunity During the performance of this agreement: a. APPRAISER will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. APPRAISER shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Soh action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. APPRAISER agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by CITY setting forth the provisions of this nondiscrimination clause. b. APPRAISER shall, in all solicitations or advertisements for employees placed by or on behalf of APPRAISER, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. c. APPRAISER is encouraged by CITY to employ qualified people, when available, from the Project Area to assist in providing the services contracted for in this agreement. 7. Assignment APPRAISER'S rights, obligations, and duties under this agreement shall not be assigned in whole or in part, but this shall not prohibit the assignment of the proceeds due or to become due hereunder to a bank or financial institution. This agreement may be assigned by CITY to any corporation, agency or instrumentality having authority to accept the assignment. 8. Subcontracting Except as otherwise provided in this agreement, none of the work or services covered by this agreement shall be subcontracted without the prior approval of CITY. B. TERMINATION OF SERVICES 1. Termination of Agreement for Cause If, through any cause, APPRAISER shall fail to fulfill in a timely and proper manner his obligations under this agreement, or if APPRAISER shall violate any of the covenants or agreements hereof, CITY may upon written notice to APPRAISER terminate the right of APPRAISER to proceed under this agreement or with such part or parts thereof as to which there has been default, and may hold APPRAISER liable for any damages caused to CITY by reason of such default and termination. In the event of such termination, any completed reports prepared by APPRAISER under this agreement shall, at the option of CITY, become its property and APPRAISER shall be entitled to receive equitable compensation for any work completed to the satisfaction of CITY. APPRAISER, however, shall -13- not thereby be relieved of liability to CITY for damages sustained by CITY by reason of any breach of this agreement by APPRAISER and CITY may withhold any payments from APPRAISER for the purpose of offset until such time as the amount of damages due CITY from APPRAISER is determined. APPRAISER shall not be held liable for damages under this article solely for reasons of delay if the delay is due to causes beyond the control and without the fault or negligence of APPRAISER, but this.sliall not prevent CITY from terminating this agreement because of such delay. C. CORRECTION OF WORK 1. Periodic inspection of all work shall be made by a representative of CITY for the purpose of determining if the work is being performed accurately, and is in accordance with the provisions of this Agreement. Upon discovery of any incomplete data, inaccurate or defective work, APPRAISER shall make corrections at once. 2. The performance of services or acceptance of the appraisal reports required hereunder shall not relieve APPRAISER from the obligation to correct any defective work subsequently discovered, and all incomplete, inaccurate, or defective work shall be remedied by APPRAISER on demand without cost to CITY. D. INTEREST OF FEDERAL OFFICIALS No member of or Delegate to the Congress of the United States of America, or no Resident Commissioner, shall be admitted to any share or part of this agreement or to any benefit to arise from the same. E. HOLD HARMLESS 1. APPRAISER shall indemnify and save harmless CITY, its officers and employees, from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of CITY, and shall defend, indemnify and save harmless CITY, its officers and employees, for any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers' compensation claims, resulting from or arising out of the negligent acts, errors or omissions of APPRAISER, his employees, or subcontractors. 2. APPRAISER shall indemnify and save harmless CITY, its officers and employees, from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of CITY, and shall defend, indemnify and save harmless CITY, its officers and employees, from and against any and all claims, demands, suits, actions or proceedings therefor, resulting from or arising out of the intentional or malicious acts of APPRAISER, his employees or subcontractors. -14- F. INSURANCE APPRAISER shall obtain at his sole cost and file with the Clerk of the Council of the CITY, prior to exercising any right or performing any obligation pursuant to this Agreement, and maintain for the period covered by this Agreement, a policy or policies of liability insurance or certificate of such insurance, satisfactory to the City Attorney for the CITY, naming the CITY, its officer, agents and employees, as insured or additional insured, which provides coverage not less than that provided in the form of a comprehensive general liability insurance policy against liability for any and all claims and suits for damages or injuries to persons or property resulting from or arising our of operations of APPRAISER, his officers, agents or employees. Said policy or policies of insurance shall provide coverage for both bodily injury and property damage in not less than the following minimum amounts: Five Hundred Thousand Dollars ($500,000) combined single limit; or bodily injury, Two Hundred Fifty Thousand Dollars ($250,000) per person and Five Hundred Thousand Dollars ($500,000) each occurrence; property damage, One Hundred Thousand Dollars ($100,000) each occurrence and Tow Hundred Thousand Dollars *($200,000) aggregate. Said policy or policies shall also contain a provision that no termination, cancellation or change of coverage or of insured or additional insured shall be effective until after thirty (30) days notice thereof has been given in writing to the CITY. APPRAISER shall give the CITY prompt and timely notice of claim made or suit instituted arising out of APPRAISER'S operations hereunder. APPRAISER shall procure and maintain, at his own cost and expense, any additional kinds and amounts of insurance which, in his own judgment, may be necessary for his proper protection in the prosecution of the work. G. WORKER'S COMPENSATION INSURANCE If APPRAISER, now or at any time during the course of this agreement, qualifies as an employer under Labor Code Section 3300, unless the hired employee(s) come (s) within those persons excluded under the Labor Code, APPRAISER shall furnish CITY with an insurance certificate from his worker's compensation insurance carrier certifying that he carries such insurance, and that policy shall not be canceled nor the coverage reduced except upon thirty (30) days prior written notice to CITY. H. NOTICES All notices given or made to APPRAISER hereunder shall be deemed to be duly and properly given or made if delivered personally to APPRAISER or mailed to the following address: HARRY B. HOLZHAUER & ASSOCIATES _17632 IRVINE BOULEVARD, SUIT_E_L_ TUSTIN, CA. 92680-3159 ATTN: HARRY B. HOLZHAUER -15- All notices or other papers given or delivered to CITY hereunder shall be deemed to be sufficiently given or delivered if mailed, postage prepaid, to The City of Santa Ana, Community Development Agency, M-25, 20 Civic Center Plaza, Santa Ana, California 92701 or to such other representative or address as the CITY may designate to APPRAISER in writing. I. GENDER AND NUMBER As used herein, the masculine shall include the feminine and neuter, and the singular shall include the plural. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first hereinabove set forth. HARRY B. HOLZHAUER & ASSOC. The appraisal will be developed and the appraisal report will be prepared in conformity with and subject to the requirements of the Code of Ethics and The Standards of Professional Practice of the Appraisal Institute. HARRY OLZHAUER UVW#51�10 AC. GUY -7 Y CLERK ............. EDWARD J C OP CITY ATTORNEY THE CITY OF SANTA ANA 9: � L =- -=t z-- 4)AVID N. REAM CITY MANAGER APPROVED AS TO CONTENT: EXHIBIT A Assessor Parcel Number 001-303-01 001-051-16 001-051-17 001-051-18 001-051-19 Tvpe . of -Take Part Full Full Full Full