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HomeMy WebLinkAbout25I - AGMT - PROPERTY APPRAISAL SRVS• CITY COUNCIL MEETING DATE: JANUARY 17, 2017 TITLE: AGREEMENT WITH LIDGARD AND ASSOCIATES, INC. FOR REAL PROPERTY APPRAISAL SERVICES {STRATEGIC PLAN NO. 3,5A) CIT M NAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on V' Reading ❑ Ordinance on 2 "d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute an agreement with Lidgard and Associates, Inc. for real property appraisal services for a three year period from January 17, 2017 through January 16, 2020 in a total amount not to exceed $30,000, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION In August 2016, the Public Works Agency (PWA) issued a Request for Proposal (RFP) for on- call right -of -way coordination and property appraisal services. As a result of the RFP, City Council authorized agreements for right -of -way property appraisal services with three firms, one of which is Lidgard and Associates, Inc. (Lidgard). Lidgard received the highest rating in the RFP. Since PWA's agreement with Lidgard was specific only to right -of -way public projects, it has been recommended that the City enter into a separate, real property appraisal service agreement for other types of projects. In light of the recent procurement process conducted by PWA, it is appropriate and acceptable to enter into a new agreement for property appraisal services with the firm(s) that have been determined as qualified and experienced in the field. Lidgard is willing and able to provide appraisal services for potential development projects in the City at the same fee schedule as provided in their response to Public Works Agency's RFP. It is unknown how many potential acquisition /development projects may require the need for property appraisals. However, an existing agreement with a professional appraisal consultant will make it possible to explore development options more efficiently. Other departments throughout the City have utilized Lidgard in the past for a variety of projects and have been satisfied with the services provided by the firm. Therefore, staff recommends the agreement with Lidgard for a three -year period, commencing on January 17, 2016, in a total amount not to exceed $30,000. 251 -1 Agreement with Lidgard and Associates, Inc. January 17, 2017 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #3 — Economic Development, Objective #5 (leverage private investment that results in tax base expansion and job creation citywide), Strategy A (identify and market underutilized properties (city and non -city owned) for new development that will create new jobs and expand the City's tax base). FISCAL IMPACT Funds in the amount of $10,000 are available in the Economic Development, Contract Services - Professional account (no. 01118810- 62300) for possible expenditure in FY 2016 -17. The remaining $20,000 will be budgeted in the various program budgets for FY 2017 -18 and FY 2018 -19. Robert C. Carter—` Deputy City Manager City Manager's Office RC /SG /sb Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez I-0, Executive Director Finance and Management Services Agency 251 -2 AGREEMENT TO PROVIDE REAL PROPERTY APPRAISAL CONSULTANT SERVICES THIS AGREEMENT is made and entered into this 17th day of January, 2017 by and between Lidgard and Associates, Inc. ( "Consultant "), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ( "City "). RECITALS A. The City desires to retain a consultant having special skill and knowledge in the field of real property appraisal services. B. Consultant represents that it is able and willing to provide such services to the City, as described in the scope of work attached herein as Exhibit A. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall provide real estate appraisal consulting services, including preparation of studies and technical reports and other necessary services, on an as- needed basis, at the written direction of the Executive Director of the Community Development Agency, or bis/her designee, in compliance with the Scope of Work, attached herein as Exhibit A to this Agreement. COMPENSATION a. City neither warrants nor guarantees any minimum or maximurm compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. The total sum to be expended under this Agreerent, including any extension period, shall not exceed $30,000. b. Payment by City shall be made within forty -five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work that fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date stated above and continue through January 16, 2020, unless tenninated earlier in accordance with Section 16, below. The term of this Agreement may be extended for a single (2) two -year period upon a writing executed by the City Manager and the City Attorney. IG U l 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer - employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreerneat creates a non - exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other dociunents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ( "Documents & Data "). Consultant shall require all subcontractors to agree in writing that City is granted a non - exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Consultant's operations in the performance of this Agreement, including, without lim4ation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self - insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Workers' Compensation Insurance. In accordance with the California Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for 25f-4 workers' compensation or to undertake self insurance, Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. C. The following requirements apply to the insurance to be provided by Consultant pursuant to this section; (i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City, (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. (iv) Consultant shall supply City with a fully executed additional insured endorsement. f If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to temlinate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation, and agrees to indemnify the City for any work performed prior to approval of insurance by the City. INDEMNUICATION Consultant agrees to and shall indemnify, defend, and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligence or willful misconduct of the Consultant or its, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section I of this Agreement; and (2) from any claim that personal injury, damages, jest compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its represcntatioa in any legal proceeding. Consultant's indemnification obligations in this section shall survive expiration of this Agreement. Notwithstanding the foregoing, to the extent 251 -5 Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend, indemnify, and hold harmless City, its officers, agents, representatives, and employees against any and all liability or losses, including costs and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright, alleged or contained in the work product or documents provided or used by Consultant under this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the casts incurred, under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant rmder this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant tinder this Agreement. 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and /or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and /or agent of the other party is covered by this Agreement. The foregoing obligations of non -use and nondisclosure shall not apply to stay information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11, CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with the performance of services specified under this Agreement. 12. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided 25t -6 in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M -30) P.O. Box 1988 Santa Ana, CA 92702 -1988 Fax 714- 647 -6956 With courtesy copies to: To Consultant: Executive Director Community Development Agency City of Santa Ana 20 Civic Center Plaza (M -25) P.O. Box 1988 Santa Ana, CA 92702 -1988 Fax 714 - 647 -6549 Lidgard and Associates, Inc. 2592 North Santiago Boulevard Orange, CA 92867 -1862 A party may change its address by giving notice in writing to the other party, Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty -four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above, For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant regarding the subject matter therein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized, representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not 'bind or obligate Consultant or the City. Each patty to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior 251 -7 written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City. 15. WAIVER No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreerent shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 16. TERMINATION This Agreement may be terminated by the City upon thirty (3 0) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: I'll As a condition of such payment, City may require Consultant to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City urAess prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work that fails to meet the standard of performance specified in the Recitals of this Agreement. 17. NONDISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 18. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 19. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other govern mental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 251 -8 20. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: . Jo Funk Assistant City Attorney RECOMMENDED FOR APPROVAL: Robert C. Cortez Deputy City Manager City Manager's Office CITY OF SANTA ANA David Cavazos City Manager CONSULTANT: Lidgard and Associates, Inc. Scott Lidgard President 261 -9 EXHIBIT A SCOPE OF SERVICES • Review of requirements by appraiser; • Collection and verification of relevant market data by appraiser; • Interviews with knowledgeable professionals such as brokers, developers, owners and operators, as well as local government personnel regarding real property values, real estate taxes, and zoning and building code issues in the area; • Review of material submitted by the city to appraiser; • Clarification of any questions with the city; • Physical inspection of subject property by appraiser; • Inspection of comparable sales by appraiser; • Description of property and project by appraiser; • Determination of highest and best use by appraiser; • Develop approaches to value by appraiser; • Reconciliation of approaches to value by appraiser; • Commimieate findings to the city via; A Preparation of appraisal reports, which includes the most pertinent data and analyses used in estimating the final value conclusions; and ➢ Preparation of appraisal reports with a summary in a format acceptable to the city, prepared in accordance with the requirements as set forth in Section 7267.2 of the Government Code, the Uniform Standards of Professional Appraisal Practice, and any other applicable County, State, and /or Federal regulations, guidelines and /or any other applicable statues for appraisal reports. 25P10 EXHIBIT B FEE PROPOSAL The following fee schedule Includes all expenses incurred in connection with the real estate appraisal service and will remain firm for the three -year contract period. In the event Lidgard and Associates, Inc. i5 authorized to engage appraisal services for specialized equipment items or business valuations, it is assumed that the fees for said services will be reimbursed. The consultant's billable rates will not include mark -ups for overhead and profit. Single Parcel Multiple Parcel PropertyTvQe Assignments Assignments Partial Take Acquisitions: Vacant land: $3,000 - $3,500 $2,200 - $2,700 Noncomplex residential takes: $2,500 - $3,000 $2,200 - $2,700 Complex residential takes: $3,000 - $4,000 $2,500 - $3,500 Noncomplex commercial takes: $4,300 - $5,000 $3,300 - $4,000 Complex commercial takes: $5,000- $6,000 $4,000- $5,000 Noncomplex industrial takes: Complex industrial takes: Full Take AcqutsNons.- Vacant land: Single family residential: Multiple family residential: 2 -10 dwelling units: 11-20 dwelling units: 30+ dwelling units: Commercial properties, Single tenant buildings: Multiple tenant buildings: $4,300 - $5,000 $3,300 - $4,000 $5,000 - $6,000 $4,000 - $5,000 $2,500 - $3,400 $2,500 - $3,000 $2,750 - $3,100 $2,600 - $2,850 $2,650 - $3,500 $2,400 - $3,000 $3,500- $4,500 $3,000 - $4,000 $5,000+ $5,500+ $3,500 - $4,500 $3,000 - $4,000 $4,000 - $5,000 $3,500 - $4,500 The schedule for professional acquisition appraisal services will be based on the fee structure set forth below. In general, the hourly rate of the principal appraiser is $335. Market research associates and office staff are billed at hourly rates of $195 and $135, respectively. Said rates are fully burdened, i.e. inclusive of overhead costs, general, administrative, and profit. As stated, Lidgard and Associates, Inc. Is a fully staffed appraisal firm, and does not engage in the subcontracting of outside appraisal companies. 251-41 EXHIBIT B FEE PROPOSAL (Continued) The foregoing summary represents a general illustration of typical appraisal fees based on the various categories of properties and scope of services. The appraisal fee for a specific appraisal assignment will be negotiated prior to commencement thereof. Court appearance fees and /or deposition appearance fees will be based upon an additional $375 per hour with a $1,500 per half day minimum in the forenoon or afternoon. Pretrial and pre deposition conferences, if any, will be based upon an additional $375 per hour. The hourly rate will be applied for file review, travel time, and additional Investigation deemed necessary by legal counsel as part of litigation. 10 251 -12