HomeMy WebLinkAboutA8983 - CAPITAL REALTY ANALYSTS, INC.APPRAISAL SERVICES AGREEMENT
THIS APPRAISALSERVICES AGREEMENT (the "Agreement") is made this
I� day of ()C�.P(2 , 2021 (herein referred to as the "Effective Date") by
and between the City of Palm Springs, a California charter City ("City"), and Capital
Realty Analysts (CRA), ("Consultant"), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this
Agreement, Consultant shall provide to the reasonable satisfaction of City the
appraisal services for a 3.64 acre developed industrial property at 3589 McCarthy
Road APN 669-420-019, set forth in Exhibit "A" to this agreement. As a material
inducement to City to enter into this Agreement, Consultant represents and
warrants that it has thoroughly investigated and considered the scope of services
and fully understands the difficulties and restrictions in performing the work.
Consultant represents that it is experienced in performing the work and will follow
professional standards in performance of the work. All services provided shall
conform to all federal, state and local laws, rules and regulations and to
professional standards and practices. The terms and conditions set forth in this
Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.
2. Comaensation and Fees.
a. Consultant shall be paid in accordance with the rates attached hereto as
Exhibit "A", but in no event shall Consultant's total compensation for all services
performed under this Agreement exceed six thousand five hundred dollars ($6,500),
without the prior written authorization of the City Manager or the City Manager's
designee ("City Manager"). Consultant shall be responsible for notifying the City
Manager or the City Manager's designee if the not to exceed amount is about to
expend.
b. The above fee shall include all costs, including but not limited to, all
clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto
rental, subsistence and all related expenses.
3. Payment.
a. As scheduled services are completed, Consultant shall submit to City
an invoice for the services completed, authorized expenses and authorized extra
work actually performed or incurred.
b. City will pay Consultant the amount invoiced within thirty (30) days
after the approval of the invoice.
C. Payment shall constitute payment in full for all services, authorized
costs and authorized extra work covered by that invoice.
4. Change Orders. No payment for extra services caused by a change
in the scope or complexity of work, or for any other reason, shall be made unless
and until such extra services and a price therefore have been previously authorized
in writing and approved by the City Manager as an amendment to this Agreement.
The amendment shall set forth the changes of work, extension of time for
preparation, and adjustment of the fee to be paid by City to Consultant.
5. Licenses. Designation. Consultant represents that it and any
subcontractors it may engage, possess any and all licenses which are required
under state or federal law to perform the work contemplated by this Agreement
and that Consultant and its subcontractors shall maintain all appropriate licenses,
during the performance of this Agreement. If required by City, Consultant warrants
and covenants that its principal has achieved and will maintain in good standing
throughout the term of this Agreement an " MAI" (Member of Appraisal Institute)
designation corresponding to each real property identified in Exhibit "A" to this
Agreement (e.g., residential, commercial, industrial, etc.).
Mark Here if
MAI
Required
6. Independent Contractor. At all times during the term of this
Agreement, Consultant shall bean independent contractor and not an employee of
City. City shall have the right to control Consultant only insofar as the result of
Consultant's services rendered pursuant to this Agreement. City shall not have the
right to control the means by which Consultant accomplishes services rendered
pursuant to this Agreement. Consultant shall, at its sole cost and expense, furnish
all facilities, materials and equipment which may be required for furnishing
services pursuant to this Agreement. Consultant acknowledges that Consultant
and any subcontractors, agents or employees employed by Consultant shall not,
under any circumstances, be considered employees of City.
7. Consultant Not Agent. Except as City may specify in writing and as
set forth in this Agreement, Consultant shall have no authority, express implied, to
act on behalf of City in any capacity whatsoever as an agent. Consultant shall have
no authority, express or implied,to bind City to any obligation whatsoever.
8. Assianment or Subcontractina. No assignment or subcontracting
by Consultant of any part of this Agreement or of funds to be received under this
Agreement shall be of any force or effect unless the assignment has had the prior
written approval of City. City may terminate this Agreement rather than accept any
proposed assignment or subcontracting.
9. Insurance. Consultant shall maintain during the life of this Agreement
professional liability insurance covering errors and omissions arising out of the
performance of this Agreement with a combined single limit of $1,000,000.
Consultant agrees to keep such policy in force and effect for at least three years
from the date of completion of this Agreement as long as such insurance is
available on reasonably acceptable terms. Consultant shall provide a certificate of
insurance evidencing such coverage. Consultant shall provide City with evidence
in the form of a certificate that should this insurance policy be canceled before the
completion of all services contemplated by this Agreement, the issuing company will
mail no less than thirty (30) days written notice to the City.
10. lime Is of the Essence. Time is of the essence in this Agreement.
Consultant shall do all things necessary and incidental to the prosecution of
Consultant's work.
11. Products of Consultant. The documents and appraisal report and other
products produced or provided by Consultant for this Agreement shall become the
property of City upon receipt. Consultant shall deliver all such products to City prior to
payment for same. City may use, reuse or otherwise utilized such products, but only
in connection with City's purchase or acquisition of the property that is the subject of
the appraisal.
12. Termination, City Manager may for any reason terminate this Agreement
by giving the Consultant not less than five (5) days written notice of intent to terminate.
Upon receipt of such notice, the Consultant shall immediately cease work, unless the
notice from City Manager provides otherwise. Upon the termination of this Agreement,
City shall pay Consultant for services satisfactorily provided and all allowable
reimbursements incurred to the date of termination in compliance with this Agreement,
unless termination by City shall be for cause, in which event City may withhold any
disputed compensation. City shall not be liable for any claim of lost profits.
13. Maintenance and Inspection of Records. In accordance with generally
accepted accounting principles, Consultant shall maintain reasonably full and
complete books, documents, papers, accounting records, and other information
(collectively, the "records") pertaining to the costs of and completion of services
performed under this Agreement. City Manager shall have access to and the right to
audit and reproduce any of Consultant's records regarding the services provided under
this Agreement. Consultant shall maintain all such records for a period of at least three
(3) years after termination or completion of this Agreement. Consultant agrees to make
available all such records for inspection or audit at its offices during normal business
hours and upon three (3) days' notice from City Manager, and copies thereof shall be
furnished if requested.
14. Governing Law, Venue. This Agreement shall be construed in
accordance with and governed by the laws of the State of California and Consultant
agrees to submit to the jurisdiction of California courts. The venue for any dispute
arising from or related to this Agreement shall be the Superior Court of the State of
California, County of Riverside, and Palm Springs Courthouse.
15. Integration. This Agreement constitutes the entire agreement of the
parties. No other agreement, oral or written, pertaining to the work to be performed
under this Agreement shall be of any force or effect unless it is in writing and signed by
both parties. Any work performed which is inconsistent with or in violation of the
provisions of this Agreement shall not be compensated.
16. City Officers And Employees: Non -Discrimination
16.1 Non -Liability of City Officers and Employees. No officer or
employee of City shall be personally liable to the Consultant, or any
successor -in -interest, in the event of any default or breach by City or
for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terms of this
Agreement.
16.2 Conflict of Interest. Consultant acknowledges that no officer or
employee of the City has or shall have any direct or indirect financial
interest in this Agreement nor shall Consultant enter into any
agreement of any kind with any such officer or employee during the
term of this Agreement and for one year thereafter. Consultant
warrants that Consultant has not paid or given, and will not pay or
give, any third party any money or other consideration in exchange
for obtaining this Agreement.
16.3 Covenant Against Discrimination. In connection with its
performance under this Agreement, Contractor shall not discriminate
against any employee or applicant for employment because of actual
or perceived race, religion, color, sex, age, marital status, ancestry,
national origin (i.e., place of origin, immigration status, cultural or
linguistic characteristics, or ethnicity), sexual orientation, gender
identity, gender expression, physical or mental disability, or medical
condition (each a "prohibited basis"). Contractor shall ensure that
applicants are employed, and that employees are treated during their
employment, without regard to any prohibited basis. As a condition
precedent to City's lawful capacity to enter this Agreement, and in
executing this Agreement, Contractor certifies that its actions and
omissions hereunder shall not incorporate any discrimination arising
from or related to any prohibited basis in any Contractor activity,
including but not 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; and further, that
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
dates stated below.
"CITY"
CITY OF PALM SPRINGS
Date: By: 4f
Justin C i on
City Manager
APPROVED AS TO FORM:
By: By:
je—f1Ay-8e'YaIhuKr,
City Attorney
CAPITAL REALTY ANALYSTS
Date: /0 —) q — 2001
Date:
ATTEST:
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City Cler
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Printed Na e/Title
By:
Signature
Printed Name/Title
Contractor is in full compliance with the provisions of Palm Springs
Municipal Code Section 7.09.040, including without limitation the
provision of benefits, relating to non-discrimination in City
contracting.
17. Notice. Any notice, demand, request, consent, approval, or
communication that either party desires, or is required to give to the other party or any
other person shall be in writing and either served personally or sent by pre -paid, first-
class mail to the address set forth below. Notice shall be deemed communicated
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
Either party may change its address by notifying the other party of the change of
address in writing.
TO CONSULTANT:
Jim Dingman, AG
Capital Realty Analysts
2669 Oakcrest Lane
Santa Ynez, CA 93460
Phone: (805) 693-4725
TO CITY:
City of Palm Springs
Office of the City Manager
Justin Clifton, City Manager
3200 E Tahquitz Canyon Way
Palm Springs, CA 92262
Phone: (760) 322-8362
SIGNATURES ON THE FOLLOWING PAGE
EXHIBIT "A"
SCOPE OF SERVICES AND COMPENSATION
C.
1
2669 Oakerest Lane, Santa Ynez, CA 93460
September 22, 2021
City of Palm Springs
Ms. Diana Shay
Redevelopment Coordinator
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Diana.Shay@palmspringsca.gov
RE: Appraisal Proposal - The Market Value Estimate of the Fee Simple Estate, As -Is, of ±46,760-
ftZ Industrial Complex Located at 3589 McCarthy Road, Palm Springs, CA. Also Known as
Riverside County Assessor Parcel Number 669-420-019
Ms. Shay:
At your request, I submit this proposal for appraisal services in connection with the above -
referenced subject property. Based on your supplied information, I understand the parameters
of the assignment to be as follows:
Property Type:
Location:
APN:
ReportType:
Date of Value:
The Purpose of the Appraisal:
Intended Users
Intended Use:
Property Rights:
The Scope of Work:
±46,760-ftz Industrial Complex
3589 McCarthy Road, Palm Springs, CA
669-420-019
Appraisal Report
Date inspected
Market value estimate, as -is
Client
Possible acquisition
Fee simple estate
The scope of work requirement is for a market value
estimate of the fee simple estate, as -is. The applied valuation
models are the cost, sales comparison and income
approaches.
Restricted Appraisal Report:
Fee: / Time Frame: $6,500
7 Weeks
The appraisal report will be prepared in accordance with the 2020/2021 version of the Uniform
Standards of Professional Appraisal Practice and the Code of Professional Ethics of the Appraisal
Institute. Attached to this proposal is a copy of the relevant Certifications, Assumptions, and
Limiting Conditions for your review. Based on the information provided, I have not performed
business or appraisal services associated with the subject property in the prior three years.
The quoted fee is inclusive of all expenses and charges. Payment for the appraisal report is due
upon the completion of the assignment. I will provide you with a digital copy of the report. Paper
copies of the report are available for an additional fee upon request. The parcel map on the
following page illustrates the subject property highlighted in red.
September 22, 2021
Page 2, Capital Realty Analysts/ City of Palm Springs
I will proceed with the preparation of this appraisal assignment upon receipt of a signed copy of
this letter. Thank you, and please contact me if I can answer questions or be of additional
assistance.
Agreed and Accepted Agreed and Accepted
Capital Realty Analysts, Inc.
September 22, 2021
Page 3, Capital Realty Analysts/ City of Palm Springs
Assumptions and Limiting Conditions
The proposed appraisal report will be made with the following general assumptions and limiting
conditions. While intended to be complete, inclusive and relevant to any analysis, the report is
subject to additional assumptions and conditions as presented within the body of the report
where stated. The following items are essential to completely understand the proposed analysis
and conclusions presented.
1. No responsibility is assumed for the legal description or matters including legal or title
considerations. Title to the property is deemed to be good and marketable unless
otherwise stated.
2. The property is appraised free and clear of any or all liens or encumbrances unless
otherwise stated.
3. Responsible ownership and competent property management are assumed as expected
by the complexity of the defined subject property.
4. The information furnished by others is believed to be reliable. However, no warranty is
given for its accuracy. The appraiser reserves the right to make adjustments to the
analyses, opinions, and conclusions in this report, as may be required by consideration
of additional or revised data that may become available.
5. All engineering is assumed to be correct. The plot plans and illustrative material in this
report are included only to assist the reader in visualizing the property.
6. If more current and complete information relevant to the subject property becomes
available, the appraiser reserves the right to review such information and adjust the
analysis and conclusions.
7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil,
or structures that render it more or less valuable. No responsibility is assumed for such
conditions or for obtaining the engineering studies that may be required to discover
them.
8. It is assumed that the property is in full compliance with all applicable federal, state, and
local environmental regulations and laws unless noncompliance is stated, defined, and
considered in the appraisal report.
9. It is assumed that the property conforms to all applicable zoning and use regulations and
restrictions unless nonconformity has been identified, described, and considered in the
appraisal report.
September 22, 2021
Page 4, Capital Realty Analysts/ City of Palm Springs
10. It is assumed that all required licenses, certificates of occupancy, consents, and other
legislative or administrative authority from any local, state, or national government or
private entity or organization have been or can be obtained or renewed for any use on
which the value estimate contained in this report is based.
11. It is assumed that the utilization of the land and improvements is confined within the
boundaries or property lines of the property described and that there is no
encroachment or trespass unless noted in the report.
12. Unless otherwise stated in this report, the existence of hazardous materials, which may
or may not be present on the subject property, was not observed by the appraiser. The
appraiser has no knowledge of the existence of such materials on or in the property. The
appraiser, however, is not qualified to detect such substances. The presence of
substances such as asbestos, urea -formaldehyde foam insulation, and other potentially
hazardous materials may affect the value of the property. The value estimated is
predicated on the assumption that there is no such material on or in the property that
would cause a loss in value. No responsibility is assumed for such conditions or for any
expertise or engineering knowledge required to discover them. The intended user is
urged to retain an expert in this field if desired.
13. Any allocation of the total value estimated in this report between the land and the
improvements applies only under the stated program of utilization. The separate
allocations for land and building must not be used in conjunction with any other
appraisal and are invalid if so used.
14. Possession of this report, or a copy thereof, does not carry with it the right of
publication. It may not be used for any purpose by any person other than the party to
whom it is addressed without the written consent of the appraiser, and in any event
only with properly written qualification and only its entirety.
15. The appraiser herein by reason of this appraisal is not required to give further
consultation, testimony, or be in attendance in court with reference to the property in
question unless arrangements have been previously made.
16. Neither all nor any part of the contents of this report (especially any conclusions as to
value, the identity of the appraiser, or the firm with which the appraiser is connected)
shall be disseminated to the public through advertising, public relations, news, sales, or
other media without the prior written consent and approval of the appraiser.
September 22, 2021
Page 5, Capital Realty Analysts/ City of Palm Springs
17. Improved Properties - The Americans with Disabilities Act ("ADA") became effective
January 26, 1992. 1 (we) have not made a specific compliance survey and analysis of this
property to determine whether or not it is in conformity with the various detailed
requirements of the ADA. It is possible that a compliance survey of the property,
together with a detailed analysis of the requirements of the ADA, could reveal that the
property is not in compliance with one or more of the requirements of the Act. If so, this
fact could have a negative effect on the value of the property. Since I (we) have no direct
evidence relating to this issue, I (we) did not consider possible non-compliance with the
requirements of ADA in estimating the value of the property.
18. Existing and proposed improvements and their subsequent value estimates in this report
are subject to the improvements being completed in the manner represented to the
appraiser(s) and described in the Improvement Description section of this report.
19. The legal descriptions, site sizes, dimensions, and other surveys provided to the
appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove
these characteristics inaccurate, it may be necessary for the appraisal to be adjusted.
20. The forecasts, projections, or operation estimates contained herein are based upon
current market conditions, anticipated short-term supply and demand factors, and a
continued stable economy. These forecasts are therefore, subject to change in the
future.
21. It is assumed that all entitlements required for the development of this property, if
applicable, have been or can be obtained within a reasonable timeframe.
22. The appraiser undertaking this assignment warrants that he is competent in properly
identifying the appraisal problem and has the necessary knowledge and experience to
complete the assignment.
23. Copyright of any produced report belongs exclusively to Capital Realty Analysts, Inc. The
provided copy is intended for private use as defined in the body of the report for the
designated client only. No person or entity is permitted to reproduce this material, in
whole or in part, for distribution either free of charge or for 'commercial purposes,'
unless that person or entity has a signed license agreement with Capital Realty Analysts,
Inc. Reproduction for commercial purposes is reproduction for sale, rent, trade or
distribution, or posting it on the Internet or electronic bulletin boards.