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HomeMy WebLinkAbout4/2/2003 - STAFF REPORTS (11) DATE: April 2, 2003 TO: City Council FROM: Public Works Director/City Engineer APPROVE MINUTE ORDER AUTHORIZING ENGINEERS REPORT FOR PROPOSED ASSESSMENT DISTRICT FOR CENTURY HOMES "MOUNTAIN GATE", TRACT#30963 RECOMMENDATION: It is recommended that the City Council approve a Minute Order authorizing a consulting contract with Albert A. Webb Associates for a Preliminary Engineer's Report(Phase 1) at cost of $22,000 and Final Engineer's Report (Phase 2) at cost of $7,000, for a combined total of $29,000, plus routine incidental expenses (paid for by developer's deposits)from Century Crowell Communities, LP (Century Vintage Homes)for the proposed formation of a 1913 Act Assessment District, using 1915 Act Bonds, for certain eligible public improvements for the "Mountain Gate" Tract 30963 by Century, located at the NE corner of N. Palm Canyon Drive (Hwy. 111) and Gateway Drive; City Assessment District No. 161 SUMMARY: On February 26,2003 City Council approved a Planned Development District(PDD)and Tentative Tract Map (TTM 30963) for a 308 lot single-family subdivision to be located on 83.8 acres at the northeast corner of North Palm Canyon Drive (Hwy. 111) and Gateway Drive in the northwest entryway to Palm Springs. The developer, Century Crowell Communities, LP, (Century Vintage Homes) filed application for the formation of a 1913 Act District, using 1915 Act Bonds, to utilize Municipal Bonds to fund certain public improvements associated with the project, to lower the purchase price of the 308 proposed homes in the "Mountain Gate" subdivision. Century posted a $10,000 deposit with the application in November,2002 to cover City costs forthe proposed district, and any unspent balance of that deposit is refundable to Century upon completion of the bond sale. The final PDD and Final Map was approved by the Planning Commission on March 26, 2003. A Resolution of Intention is required to form such a 1 91 311 91 5 Acts District and a Preliminary Engineer's Report is part of the Resolution of Intention and initial formation process.AlbertA.Webb Associates has a long term role as the City's Assessment Engineer/Special Tax Consultant for the formation of special districts in the City of Palm Springs.Webb Associates submitted a proposal to provide those services (costs summarized above), and Century will provide the funding ($29,000) to coverthe consultant costs of the City's Assessment Engineer.The Preliminary Engineer's Report can be completed in less than 30 days and the City staff would then return with the Resolution of Intention to form the proposed Assessment District No. 161 if approved by City Council. BACKGROUND: On January 22, 1992 City Council adopted Resolution No. 17774 which established written Policies and Procedures for the administration of special districts under the State of California 1911, 1913 and 1915 Improvement Acts and Community Facilities Act of 1982 (Mello-Roos CFDs). A 32-page policy & procedure guideline manual was adopted along with the resolution. These policies and procedures are similar to those adopted by the City and County of Riverside and since adopted by most cities concerned about special district safeguards in California.On October 8, 1998 the Grants and Special Districts Manager submitted a Special Districts Guidelines Manual, at the request of City Council and City Manager,to be used as a handout for prospective Palm Springs developers. qfi On April 3, 2002 the City Council adopted Resolution No. 20304 which expanded the 1992 Special Districts Policy & Procedures by primarily allowing residential subdivisions to be included with qualifying CFDs; also adopting state approved property owner"Disclosure Forms", which must be distributed by developers to all prospective home buyers to disclose the costs and facts associated with Assessment District costs priorto the purchase of homes proposed within such special districts. When Century proposed an assessment district for their public improvements at"Mountain Gate', City staff instituted the City's Special District Team as follows: • FINANCIAL ADVISOR: Suzanne Harrell (Harrell & Company Advisors) • ASSESSMENT ENGINEER: Paul Thompson/Merle Schulze (Albert A. Webb Associates) • BOND COUNSEL: David Aleshire (Aleshire & Wynder, LLP) • BOND UNDERWRITERS: Sara Oberlies, VP (Stone & Youngberg, LLC) • CITY STAFF: Troy Butzlaff, Tom Kanarr, John Raymond, Dave Barakian, Bob Mohler If approved by City Council, the Assessment Engineer will initially prepare the Preliminary Engineer's Report, which will analyze all eligible public improvement costs proposed by the developer. Itwill list all eligible"public"Grading,Street,Sewer, Storm Drain,Water Mains and Utility Work, as well as Street Lighting and an off-site perimeter Landscape parkway strip. It will list all eligible Engineering Design costs and list Incidental Expenses associated with the proposed 1913 Act District formation. A Boundary Map will be prepared, indicating boundary encompassing the limits of assessable lands within the District. After the submittal of the Preliminary Engineer's Report, City staff will prepare a Resolution of Intention forCity Council's consideration to form the proposed Assessment District.Afterformation, the City will then hire two more consultants: 1. Real Estate Appraiser and 2. Market Absorption Analyst. The Real Estate Appraiser (who must be MAI approved and familiar with such special districts) will analyze the current Real Estate values of the bulk land as well as the subdivided lot values based on current sales comparables in the area. The Market Absorption Analyst will determine how quickly the proposed homes will sell and"absorb"into the market, based on current similar sales records in Southern California, as well as Coachella Valley and Palm Springs area. All of these consultant costs (Assessment Engineer/ Real Estate Appraiser/ Market Absorption Analyst)are being paid for by the developer via deposits to the City. The City hires the consultants and the subsequent reports are all submitted directly to the City for approval.There is no cost to the City for staff and consultant costs described above due to Century's developer contributions. To conform with the City's adopted Special District Policies & Procedures, the total combined appraised land and improvement values must be at least 4 times the estimated assessments.The 4:1 "Value to Lien Ratio" is conservative in the industry (often 3:1 in other agencies). The overall tax rate, including assessments, shall not exceed 2% of property values as adopted by City Policy, NEXT KEY TARGET DATES: May, 2003- Century Homes commences site grading May 7- City Council approves Resolution of Intention forming the 1913/1915 Act District June 4- City Council approves Real Estate Appraiser and Market Absorption Analyst July, '03- Century completes model homes within "Mountain Gate" subdivision Aug. '03- Real Estate Appraiser and Market Analyst submit preliminary draft reports Oct. '03- Century completes all public improvements associated with Phase 1 of on-site construction (including 60 Homes) in Phase 1 of"Mountain Gate" Oct. '03- Real Estate Appraiser, Market Analyst, Assessment Engr. complete Final Reports Nov. '03- Proposed 1915 Act Municipal Bond Sale Dec. '06- Century completes all (14) phases of"Mountain Gate" subdivision- 308 Units Total qAo. City Council Report(4/2/03)-Tract 30963,Assessment Engineer,AD 16i-pg.3 ROBERT L. MOHLER DAVID J. BARAKIAN Grants and Special Districts Manager Public Works Director/City Engineer .. `- x ' APPROVED-*--°�=.: — :" `� a .' City Manager / ATTACHMENTS: 1. Minute Order 2. Roster of City's Special District Formation Team (Listing of 12 persons/firms) 3. Written Proposal from Albert A. Webb Associates, City's Assessment Engineer- 7 pgs. 4. City Contract Services Agreement with Albert A. Webb Associates- 19 pgs. 5. Vicinity Map ("Mountain Gate" Tract# 30963) N. Palm Canyon (Hwy. 111) & Gateway Dr. 6. Proposed Mountain Gate A.D. No. 161 Cost Summary by City's Financial Advisor REVIEWED BY DEPT.OF FINANCE i7F ; q#3 Proposed "Mountain Gate" Tract No. 30963 (Hwy. 111 & Gateway Dr.) SPECIAL DISTRICT FORMATION- PRIMARY CONTACTS LIST (Page 1 of 1 1 Century Crowell Communities Bob Mohler (Century Vintage Homes) Grants&Special Districts Manager 1535 South"D" Street,Suite 200 City of Palm Springs San Bernardino,CA 92408 Public Works/Engineering Department 3200 E.Tahquitz Canyon Way Carlos H.Cueva-Public Financing Manager Palm Springs,CA 92262-2743 Marty Butler-Project Manager Phone: (909)381-6007 Phone: (760)323-8250 FAX: (909)381-2617 FAX: (760)322-8360 E-Mail: ecueya(&,centurvvintagehomes.com E-Mail: BobM(&ci.palm-springs.ca.us Tom Kanarr Patricia Sanders Director of Finance/Treasurer City Clerk City of Palm Springs City of Palm Springs 3200 E.Tahquitz Canyon Way 3200 E.Tahquitz Canyon Way Patin Springs,CA 92262-2743 Palm Springs,CA 92262-2743 Phone: (760)323-8221 Phone: (760)323-8205 FAX: (760)322-8320 FAX: (760)322-8320 E-Mail: TomK(&,ci.palm-springs.ca.us E-Mail: Trisha&i ci.palm-springs.ca.ns Dave Barakian John Raymond Director of Public Works/City Engineer Director of Community&Economic Development City of Palm Springs City of Palm Springs 3200 E.Tahquitz Canyon Way 3200 E.Tahquitz Canyon Way Patin Springs,CA 92262-2743 Palm Springs,CA 92262-2743 Phone: (760)323-8253(X8732) Phone: (760)323-8228 FAX: (760)322-8360 FAX: (760)322-8325 E-Mail: Davc13Aci.palm-springs.ca.us E-Mail: JohnR(&ei.palm-springs.ca.us Sara E.Oberlies,VP (BOND UNDERWRITER) David Aleshire,Esq. (BOND COUNSEL) Stone&Youngberg,LLC Aleshire&Wynder,LLP (City Attorneys) 515 South Figueroa Street,Suite 1060 Tower 17, 18881 Von Karman Ave.,Suite 400 Los Angeles,CA 90071 Irvine,CA 92612 Phone: (213)443-5004 Phone: (949)223-1170(ext.209) FAX: (213)443-5023 FAX: (949)22371180 E-Mail: soberlies(a),svllc.com E-Mail: daleshire(a),awattornevs.com Suzanne Q.Harrell (FINANCIAL ADVISOR) Paul Thompson&Merle Schulze Harrell&Company Advisors Albert A.Webb Associates (ASSESSMENTS) 333 City Blvd.West,Suite 1430 3788 McCray Street (SPECIAL TAXES) Orange,CA 92868 Riverside,CA 92505 Phone: (714)939-1464 Phone: (909)686-1070 FAX: (714)939-1462 FAX: (909)788-4139 E-Mail: s.harrell(&harrelleo.com E-Mail: paul.thompsonn&,webbassociates.com rlm 3/25/03 qt# 21 A L B E R T A. 9F VW ]r�� 3788 McCray Street,Riverside,CA 92506 Phone(909)686-1070 Fax(909)788-1256 o ry Vv ■�1i. www.webbassociates.com #�!F AssocIATE9 iy�QF� �Z0o3 ENGINEERING CONSULTANTS W.O. 02-410 9e Fax to: (760) 322-8360 (Original to Follow) March 17, 2003 Mr. Robert L. Mohler Grants and Government Affairs Manager City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263-2743 RE: Assessment Engineering Services for Tract No. 30963 for "Preliminary Report" Phase and for "Final Report" Phase Dear Mr. Mohler: Albert A. Webb Associates is pleased to submit this proposal with a scope of services and fee schedule for Assessment Engineering Services for the Assessment District referenced above. The improvements will consist of Street, Sewer, Water, and Landscaping Improvements. This project was reviewed at your offices on December 11, 2002 and again on March 5, 2003. As requested, we have broken down our services into the "Preliminary" and "Final' phases. If you have any questions regarding this proposal and scope of services, or if additional information is needed, please call me at(909) 248-4283. Sincerely yours, ALBERT A. WEBB ASSOCIATES Merle G. Schulze . Special Assessment/Tax Service MGS:kg cc: Paul Thompson, Albert A. Webb Associates Attachment CIVIL ENGINEERING•PLANNING•ASSESSMENT/SPECIAL TAX CONSULTING•WATER RESOURCES ENGINEERING ENVIRONMENTAL ANALYSIS•SURVEYING•CONSTRUCTION MANAGEMENT&INSPECTION•TRAFFIC ENGINEERING ASSESSMENT DISTRICT FOR TRACT NO. 30963 CITY OF PALM SPRINGS SCOPE OF SERVICES "PRELIMINARY REPORT" PHASE The following is Albert A. Webb Associates' proposed Scope of Sei vices based upon our prior experience with similar projects and discussions with City staff. I. Assessment Engineering Initial Assessment Engineering A. Initial Scoping Meeting Meet with City Staff and members of the Financing Team to establish the assessment district schedule of events, procedural and financial considerations, discuss the proposed improvements, eligibility of those improvements and any limitations on the funding of those improvements (i.e. Public Utilities). Discuss and identify the boundaries of the proposed assessment district, identify the scope of responsibilities and develop a program for public notification and involvement. B. Research Property Information Obtain the latest assessor maps and equalized tax roll on computer tape from the Riverside County Assessor's Office for all parcels within the proposed assessment district. In addition, obtain information on existing liens and assessments in order to determine overlapping debt. C. Computer Database Preparation Prepare a database showing the assessor's parcel numbers of each parcel within the proposed assessment district, the land use code, the area, the status of development and assessed values. From this database a mailing list will be prepared. D. Prepare Assessment District Study Using information gathered for the database preparation, preliminary cost estimates for the project will be prepared. The project cost will be based on the preliminary engineering design, and will result in an estimate of the total amount Page 1 of 5 G.\2002\02-0410\Scope2DOC Albert A. Webb Associates L &V to bond for the project. The total amount to bond for the project will include construction, any acquisition costs, construction contingencies, incidental expenses including assessment engineering costs, bond counsel costs, construction surveying and staking, plan checking, construction inspection, design engineering, and any other costs eligible and incidental to the construction of the project. Also included will be any financing costs associated with the bond issue including special reserve fund, capitalized interest and bond discount. Consultation will occur with the bond counsel and underwriter for recommendations on the assessment district from a legal and financial perspective. E. Prepare Boundary Map A Boundary Map will be prepared for the assessment district depicting the boundary that includes all parcels that benefit from the proposed improvements. Assessment District Formation A. Coordination of the Adoption of Resolutions Initiating the Proceedings Coordination with City staff will occur to implement the following actions by the City Council after Bond Counsel prepares the necessary Resolution. These will include the following: • Declaration of intent to construct the improvements. • Appointment of the engineer of work, Bond Counsel, Underwriter, and any other necessary consultants for the formation of the district. • Authorize Assessment Engineer to prepare Engineer's Report. B. Prepare Preliminary Engineer's Report A preliminary Engineer's Report will be prepared which contains all items as required by code, including a description of the proposed improvements, and an engineer's estimate of the construction costs and incidental expenses. These costs will be based on the preliminary cost information provided by the City of Palm Springs and developer for Tract No. 30963. Also included will be a narrative description of the spread methodology including assumptions behind the determination of benefits, the assessment roll including the assessor's parcel number, owner's name, and total assessment amount as preliminarily filed. C. Coordinate City Review Process The Assessment Engineer will submit the Preliminary Engineer's Report to the City Clerk prior to the adoption of the Resolution of Intention (ROI) and conduct workshop meetings with the City of Palm Springs staff and developer for Tract No. 30963 to discuss possible report revisions after staff review. Page 2 of 5 0\2002\02-0410\Sc0pe2.D0C Albert A. Webb Associates L?A�) D. Coordination of the Adoption of the Resolution of Intention The Assessment Engineer will coordinate the approval of the Preliminary Engineer's Report as submitted or with any recommended staff modifications and help establish a time and place for the Public Meeting and Public Hearing to be conducted by the City Council as required by code. II Compensation Webb Associates proposes that compensation for assessment engineering for the "Preliminary Report" Phase be an amoumt of $22,000.00. In addition to the basic contract, incidental expenses incurred in connection with the work will be billed at our costs plus 15% for outside services at our costs plus 15%. Incidental expenses include costs for reproduction, postage, mileage, fax, and telephone charges. In the event the proceedings are abandoned prior to the completion of the "Preliminary Report" Phase, Webb Associates would invoice the City for actual time and materials expended on the project at the hourly rates set forth in the attached fee schedule (Table I). "FINAL REPORT" PHASE I. Assessment Engineering A. Coordination of Disclosure Period After the City Council adopts the Resolution of Intention, the Assessment Engineer will prepare and mail ballots pursuant to Proposition 218 to all property owners within the proposed assessment district by first class mail. The ballots will contain the assessor's parcel number, the owner's name, mailing address, site address, breakdown of assessment by type of improvement, proposed assessment (lien amount), and the explanation of benefit required by Proposition 218. The City will be provided with a bound copy of all the notices to be mailed and assistance will be provided to the City for the correction of any wrong addresses and changed owners to maximize the disclosure process. The Assessment Engineer will also coordinate with City staff to arrange for the publication of the Resolution of Intention in the local newspaper. After the Resolution of Intention is adopted, the Assessment Engineer will record the boundary map with the Riverside County Recorder. The Assessment Engineer will prepare and submit the final Engineer's Report to the City with any revisions as directed by the City Council. e 3 of 5 q Page 8 G:\2002\02-0410\Scopell)OC Albert A. Webb Associates B. Participate in the Public Hearings The Assessment Engineer will attend all Public Hearings and will be prepared to give a presentation on the contents of the Engineer's Report describing the proposed improvements, explaining the assessment spread methodology and answering any questions asked by the City Council or public at large. At the second Public Hearing, the Assessment Engineer will also tabulate all oral and written protests and report the percentage of protests received by the City Council. The Assessment Engineer will also address the inclusion of any amendments ordered by the City Council as a result of the Public Hearing. Post Formation Proceedings A. Record Assessment Diagrams The Assessment Engineer will coordinate the recordation of the Assessment Diagrams, Assessment Roll, and Notice of Assessment with the County Recorder as prescribed by code. B. Mail Pre-Payment Notices The Assessment Engineer will mail the Pre-Payment Notices to the property owners with the pre-payment terms and amounts stipulated as part of the 30 day cash collection period. The Assessment Engineer will also be available to answer any questions from property owners during the 30 day cash collection period. The Assessment Engineer will also keep a log of all pre-payments received by the City, with the City providing that information to the Assessment Engineer. At the end of the 30 day cash collection period, a paid/unpaid list will be prepared by the Assessment Engineer and submitted to the City Treasurer. C. Review Preliminary Official Statement The Assessment Engineer will assist in the preparation and review of the Official Statement Document prepared by the underwriter for accuracy of content as it relates to the assessment district properties, spread methodology, and as it relates to the total amount of bond and the engineer's estimate of cost and expenses included in the final Engineer's Report. D. Submit Assessments to the County The Assessment Roll regarding the annual levy will be submitted by computer tape to the Riverside County Auditor/Controller for inclusion on tax bills on or before August 10 of the appropriate fiscal year. Page 4 of 5 G:\2002\02-0410\Sc0pe2 DOC Albert A. Webb Assoeiates II Compensation Webb Associates proposes that compensation for assessment engineering for the "Final Report" Phase be an amount of $7,000.00. In addition to the basic contract, incidental expenses inctured in connection with the work will be billed at our costs plus 15% for outside services at our costs plus 15%. Incidental expenses include costs for reproduction, postage, mileage, fax, and telephone charges. In the event the proceedings are abandoned prior to the sale of bonds, Webb Associates would invoice the City for actual time and materials expended on the project at the hourly rates set forth in the attached fee schedule (Table I). 914�l� Page 5 of 5 G:\2002\02-0410\Scope2.DOC Albert A. Webb Associates A L B E R T A. WEBB ASSOCIATES FEESCHEDULE ENGLNEEauiG CONSULEAP Lb RATES CLASSIFICATION S/IIOUR Eneineerine Services PrincipalEngineer.................................................................................................................... 128.00 SeniorEngineer........................................................................................................................ 112.00 ProjectManager ....................................................................................................................... 102.00 Assistant Project Manager........................................................................................................ 78.00 Engineer.....................................................................................................I.........I................... 92.00 AssociateEngineer................................................................................................................... . 78.00 SeniorDesigner ....................................................................................................................... 75.00 Designer .................................................................................................................................. 68.00 SeniorCADD Operator ............................................................................................................ 57,00 CADDOperator........................................................................................................................ 46.00 - Environmental Services Principal Environmental Specialist ........................................................................................... 110.00 Senior Environmental Specialist............................................................................................... 98.00 EnvironmentalSpecialist.......................................................................................................... 86.00 Associate Environmental Specialist .......................................................................................... 74.00 EnvironmentalCoordinator ...................................................................................I................. 62,00 Assessment/Special Tax Services PrincipalAssociate................................................................................................I.................. 124.00 SeniorAssociate........................................................................................................................ 108.00 Associate.................................................................................................................................. 92.00 Analyst..................................................................................................................................... 77.00 AssistantAnalyst...................................................................................................................... 68.00 Survey/Inspection Services 3-Man Survey Party.....................................................................................4............................. 185.00 2-Man SurveyP I54.00 arty.................................................................................................................. 1-Man Survey Party......................................................................................4..............,............ 95.00 PrincipalInspector...............................................................................................4.................... 75.00 SeniorInspector........................................................................................................................ 70.00 Inspector.......................................................................................................4........................,,. 65.00 Survey/Inspector Vehicle.............................................................................................4........... .60 Per Mile Sunnort Services Information Systems Consultant...........................................................................4.............4...... 72.00 AdministrativeAssistant................................................................................4.4........................ 56.00 WordProcessor....................................................................................................4.................... 39.00 Clerical ......................................................................................................................4............. 26.00 Outside Services Special Consultants and Purchased Services .............................................................................Cost Plus 15% Miscellaneous IncidentalExpenses............................................................................................4..................... Cost Postageand Telephone ............................................................................................................. Cost Prints,Copies,and,Delivery Charges.........................................................................4..........,.. Cost Travel&Subsistence ............................................................................................................... Cost Mileage............................................................................................................4.........4............ .44 Per Mile ComputerTime ......................... ............................................................................................. 15.00 Expert Witness Testimony and Preparation.................................................................4............. 275.00/I3our NOTE; Aardtes afesubjwto change bored an annual inflation andcost oflivinMadjustments. -A FLNANCE Ca, tGEefooe ontl one hdfpemena{bV3:41 pee manN(I V po,,ao)„illbeaddN a myunpaidmina.commeneloluaV(30)6ys fin.door ofminim.A mechanics Genmay be fdN foemy frwmem.alninSnnpald a5u6 (30)doys from date of imnice. Sch19(I 02JW01;R0429101) q1* 11 CITY OF PALM SPRINGS Public Works and Engineering Department CONTRACT SERVICES AGREEMENT FOR ASSESSMENT ENGINEER SERVICES FOR"MOUNTAIN GATE"TRACT 30963 AT N. PALM CANYON DRIVE (HWY.111) &GATEWAY DRIVE ASSESSMENT DISTRICT NO. 160 THIS CONTRACT SERVICES AGREEMENT (herein "Agreement"), is made and entered into this day of 20_, by and between the CITY OF PALM SPRINGS, a municipal corporation, (herein "City") and Albert A. Webb Associates, (herein "Contractor"). The term Contractor includes professionals performing in a consulting capacity. The parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the"Scope of Services" attached hereto as Exhibit "A"and incorporated herein by this reference,which services may be referred to herein as the"services" or "work" hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing thework and services contemplated herein and,in light of such status and experience,Contractor covenants that it shall followthe highest professional standards in performing thework and services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase"highest professional standards"shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Contractor's Proposal. The Scope of Service shall include the Contractor's proposal or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. 1.4 Licenses, Permits. Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest,which may be imposed by law and arise from or are necessary for the Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder. 1.5 Familiarity with Work. By executing this Contract, Contractor warrants that Contractor (a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed and(c)fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has, or will, investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -1- VVV — 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. 1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other. 1.8 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in(i)the Contract Sum, and/or(ii)the time to perform this Agreement,which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of up to five percent(5%) of the Contract Sum or$25,000;whichever is less,or in the time to perform of up to one hundred eighty(180) days may be approved by the Contract Officer. Any greater increases,taken either separately or cumulatively must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore. 1.9 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the"Special Requirements" attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit"B" and any other provisions of this Agreement, the provisions in Exhibit"B" shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of Twenty Nine Thousand Dollars($29,000.00),plus incidental expenses(costs for reproduction, postage, mileage,fax,and telephone charges)(herein"Contract Sum"),except as provided in Section 1.8. The method of compensation may include (i)a lump sum payment upon completion, (ii) payment in accordance with the percentage of completion of the services, (iii) payment for time and materials based upon the Contractor's rates as specified in the Schedule of Compensation, but not exceeding the Contract Sum or(iv)such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expense, transportation expense approved by the Contract Officer in advance, and no other expenses and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City; Contractor shall not be entitled to any additional compensation for attending said meetings. 2.2 Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation, in any month in which Contractor wishes to receive payment, no later than the first(V)working day of such month, Contractor shall submit to the City in the form approved by the City's Director of Finance, an invoice for services rendered prior to the date of the invoice. Except as provided in Section 7.3, City shall pay Contractor for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -2- 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the"Schedule of Performance"attached hereto as Exhibit"D", if any, and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Maieure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and Without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten(10)days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City forany delay in the performance of this Agreement, however caused, Contractor's sole remedy being extension of the Agreement pursuant to this Section. 3.4 Term. Unless earlier terminated in accordance with Section 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance(Exhibit"D"). 4.0 COORDINATION OF WORK 4.1 Representative of Contractor. The following principals of Contractor are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Paul Thompson, Director of Assessment/Special Tax Services It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement,the foregoing principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -3- 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor,its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent(25%)of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. The City's policy is to encourage the awarding of subcontracts to persons or entities with offices located within the jurisdictional boundaries of the City of Palm Springs and, if none are available, to persons or entities with offices located in the Coachella Valley ("Local Subcontractors"). Contractor hereby agrees to use good faith efforts to award subcontracts to Local Subcontractors, if Local Subcontractors are qualified to perform the work required. In requesting for the City to consent to a subcontract with a person or entity that is not a Local Subcontractor,the Contractor shall submit evidence to the City that such good faith efforts have been made or that no Local Subcontractors are qualified to perform the work. Said good faith efforts may be evidenced by placing advertisements inviting proposals or by sending requests for proposals to selected Local Subcontractors. The City may consider Contractor's efforts in determining whether it will consent to a particular subcontractor. Contractor shall keep evidence of such good faith efforts and copies of all contracts and subcontracts hereunder for the period specified in Section 6.2. 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. 5.0 INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance: (a) Commercial General Liability Insurance. A policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least$1,000,000 bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations. The Commercial General Liability Policy shall name the City of Palm Springs as additional insured in accordance with standard ISO additional insured endorsement form CG2010(1185)or equivalent language. (b)Worker's Compensation Insurance. A policy of worker's compensation insurance in an amount which fully complies with the statutory requirements of the State of California and which includes $1,000,000 employer's liability. (c) Business Automobile Insurance.A policy of business automobile liability a USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd M /1�/� March 21,2003 -4- insurance written on a per occurrence basis with a single limit liability in the amount of$1,000,000 bodily and property damage. Said policy shall include coverage for owned, non-owned, leased and hired cars. (d)Additional Insurance. Additional limits and coverages, which may include professional liability insurance, will be specified in Exhibit"B". All of the above policies of insurance shall be primary insurance and issued by companies whose rating satisfies the requirements in Section 5.4 of this agreement. The insurer shall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents, and their respective insurers. In the event any of said policies of insurance are canceled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance,endorsements or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance, endorsements, or binders are approved by the City. The contractor agrees that the provisions of this Section 5.1 shall not be construed as limiting'in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or person for which the Contractor is otherwise responsible. In the event the Contractor subcontracts any portion of the work in compliance with Section 4.3 of this Agreement the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same polices of insurance that the Contractor is required to maintain pursuant to this Section. 5.2 Indemnification. Contractor agrees to indemnify the City, its officers, agents and employees against, and will hold and save them, and each of them, harmless from any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein"claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the negligent acts or omissions of Contractor hereunder, or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, whether or not there is concurrent passive or active negligence on the part of the City, its officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents or employees, who are directly responsible to the City, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees are made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys'fees. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -5- 5.3 Performance Bond. Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of this Agreement, in the form provided by the City, which secures the faithful performance of this Agreement, unless such requirement is waived by the Contract Officer. The bond shall contain the original,notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement. (Not applicable). 5.4 Sufficiency of Insurer or Surety. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated"A"or better in the most recent edition of Best's Key Rating Guide or in the Federal Register, unless such requirements are waived by the City Manager or designee of the City Manager due to unique circumstances. In the event the City Manager determines that the work or services to be performed under this Agreement create an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the performance bond required by this Section 5 may be changed accordingly upon receipt of written notice from the City Manager or designee; provided that the Contractor shall have the right to appeal a determination of increased coverage by the City Manager to the City Council of City within ten(10)days of receipt of notice from the City Manager. 6.0 REPORTS AND RECORDS 6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique oreventand the estimated increased ordecreased cost related thereto and,if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.2 Records. Contractor shall keep, and require subcontractors to keep, such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three(3)years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required 6.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement. Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all damages resulting therefrom. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd fA/7 March 21,2003 -6- 6.4 Release of Documents. The drawings,specifications,reports,records,documents and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county. Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party, in writing, of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten(10)days of service of such notice and completes the cure of such default within forty-five(45)days after service of the notice, or such longer period as may be permitted by the injured party; provided that if the default is an immediate danger to the health, safety and general welfare, such immediate action may be necessary. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's or the Contractor's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Contractor hereby authorizes City to deduct from any amount payable to Contractor(whetheror not arising out of this Agreement)(i)any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City forany losses,costs,liabilities, or damages suffered by City, and(ii)all amounts for which City may be liable to third parties, by reason of Contractor's acts or omissions in performing or failing to perform Contractor's obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due,without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct orto withhold shall not, however,affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement,the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times,of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure,correct or remedy any default,to recover damages for any default,to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd � March 21, 2003 -7- 7.7 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of Zero Dollars ($0.00) as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance(Exhibit"D"). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. 7.8 Termination Prior to Expiration Of Term. This Section shall govern any termination of this Agreement except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty(30)days written notice to Contractor,except that where termination is due to the fault of the Contractor,the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Agreement at any time,with or without cause, upon sixty (60)days written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination,the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non- terminating party with the opportunity to cure pursuant to Section 7.2. 7.9 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated(provided thatthe City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7.10 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement,the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whetheror notsuch action is prosecuted to judgment. 8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and.Emoloyees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. qAlq H:IUSERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpdMarch 21,2003 -g_ 8.3 Covenant Against Discrimination. Contractor covenants that,by and for itself,its heirs, executors,assigns,and all persons claiming under or through them,.that there shall be no discrimination against or segregation of, any person or group of persons on account of race,color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice,demand,request,document,consent,approval,orcommunication 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 prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, CITY OF PALM SPRINGS, P.O. Box 2743, Palm Springs, California 92263. In the case of the Contractor,it should be addressed to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Integration:Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be,amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii)by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv)the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. IN WITNESS WHEREOF,the parties have executed and entered into this Agreement as of the date firstwritten above. ATTEST: APPROVED AS TO FORM: By: By: City Clerk City Attorney H:\USERS\BobM\Webb.Assess.En r.Tr.30963.Contr,Ser.A r.3- - q#c)o 9 g 2103.wpd March 21,2003 -9- Corporations require two notarized signatures: One from each of the following: A. Chairman of Board,President,or any Vice President:AND B. Secretary,Assistant Secretary,Treasurer, Assistant Treasurer,or Chief Financial Officer). CITY OF PALM SPRINGS, a municipal corporation By: City Manager (Check one: _Individual _Partnership _Corporation) CONTRACTOR: By: Signature (Notarized) Print Name &Title By: Signature (Notarized) Print Name&Title Mailing Address: H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -10- EXHIBIT"A" SCOPE OF SERVICES The intent of this contract is to provide Assessment Engineer services for the creation of Assessment District No. 160 for the"Mountain Gate"Tract 30963 located at N.Palm Canyon Drive(Hwy. 111)&Gateway Drive.Contractor to provide "Preliminary"and"Final"Engineers Reports to City to assist in the Resolution of Intention and Municipal Bond Sale. I. Assessment Engineering Initial Assessment Engineering A. Initial Scoping Meeting Meet with City Staff and members of the Financing Team to establish the assessment district schedule of events, procedural and financial considerations, discuss the proposed improvements, eligibility of those improvements and any limitations on the funding of those improvements (i.e. Public Utilities). Discuss and identify the boundaries of the proposed assessment district, identify the scope of responsibilities and develop a program for public notification and involvement. B. Research Property Information Obtain the latest assessor maps and equalized tax roll on computer tape from the Riverside County Assessor's Office for all parcels within the proposed assessment district. In addition, obtain information on existing liens and assessments in order to determine overlapping debt. C. Computer Database Preparation Prepare a database showing the assessor's parcel numbers of each parcel within the proposed assessment district, the land use code, the area, the status of development and assessed values. From this database a mailing list will be prepared. D. Prepare Assessment District Study Using information gathered for the database preparation, preliminary cost estimates for the project will be prepared. The project cost will be based on the preliminary engineering design, and will result in an estimate of the total amount H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -11- EXHIBIT"A" SCOPE OF SERVICES to bond for the project. The total amount to bond for the project will include construction, any acquisition costs, construction contingencies, incidental expenses including assessment engineering costs, bond counsel costs, construction surveying and staking,plan checking,construction inspection,design engineering, and any other costs eligible and incidental to the construction of the project. Also included will be any financing costs associated with the bond issue including special reserve fund, capitalized interest and bond discount. Consultation will occur with the bond counsel and underwriter for recommendations on the assessment district from a legal and financial perspective. E. Prepare Boundary Map A Boundary Map will be prepared for the assessment district depicting the P g boundary that includes all parcels that benefit from the proposed improvements. Assessment District Formation A. Coordination of the Adoption of Resolutions Initiating the Proceedings Coordination with City staff will occur to implement the following actions by the City Council after Bond Counsel prepares the necessary Resolution. These will include the following: . Declaration of intent to construct the improvements. . Appointment of the engineer of work, Bond Counsel, Underwriter, and any other necessary consultants for the formation of the district. . Authorize Assessment Engineer to prepare Engineer's Report. B. Prepare Preliminary Engineer's Report A preliminary Engineer's Report will be prepared which contains all items as required by code, including a description of the proposed improvements, and an engineer's estimate of the construction costs and incidental expenses. These costs will be based on the preliminary cost information provided by the City of Palm Springs and developer for Tract No. 30963. Also included will be a narrative description of the spread methodology including assumptions behind the determination of benefits, the assessment roll including the assessor's parcel number, owner's name, and total assessment amount as preliminarily filed. C. Coordinate City Review Process The Assessment Engineer will submit the Preliminary Engineer's Report to the City Clerk prior to the adoption of the Resolution of Intention (ROI) and conduct workshop meetings with the City of Palm Springs staff and developer for Tract No. 30963 to discuss possible report revisions after staff review.. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd 9 -13 March 21,2003 -12- EXHIBIT"A' SCOPE OF SERVICES D. Coordination of the Adoption of the Resolution of Intention The Assessment Engineer will coordinate the approval of the Preliminary Engineer's Report as submitted or with any recommended staff modifications and help establish a time and place for the Public Meeting and Public Hearing to be conducted by the City Council as required by code. II Compensation Webb Associates proposes that compensation for assessment engineering for the "Preliminary Report" Phase be an amount of $22,000.00. In addition to the basic contract, incidental expenses incurred in comiection with the work will be billed at our costs plus 15% for outside services at our costs plus 15%. Incidental expenses include costs for reproduction,postage,mileage, fax, and telephone charges. In the event the proceedings are abandoned prior to the completion of the "Preliminary Report" Phase, Webb Associates would invoice the City for actual time and materials expended on the project at the hourly rates set forth in the attached fee schedule (Table I). "FINAL REPORT" PHASE 1. Assessment Engineering A. Coordination of Disclosure Period After the City Council adopts the Resolution of Intention, the Assessment Engineer will prepare and mail ballots pursuant to Proposition 218 to all property owners within the proposed assessment district by first class mail. The ballots will contain the assessor's parcel number, the owner's name,mailing address, site address, breakdown of assessment by type of improvement, proposed assessment (lien amount), and the explanation of benefit required by Proposition 218. The City will be provided with.a bound copy of all the notices to be mailed and assistance will be provided to the City for the correction of any wrong addresses and changed owners to maximize the disclosure process. The Assessment Engineer will also coordinate with City staff to arrange for the publication of the Resolution of Intention in the local newspaper. After the Resolution of Intention is adopted, the Assessment Engineer will record the boundary map with the Riverside County Recorder. The Assessment Engineer will prepare and submit the final Engineer's Report to the City with any revisions as directed by the City Council. dy H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -13- EXHIBIT"A' SCOPE OF SERVICES B. Participate in the Public Hearings The Assessment Engineer will attend all Public Hearings and will be prepared to give a presentation on the contents of the Engineer's Report describing the proposed improvements, explaining the assessment spread methodology and answering any questions asked by the City Council or public at large. At the second Public Hearing, the Assessment Engineer will also tabulate all oral and written protests and report the percentage of protests received by the City Council. The Assessment Engineer will also address the inclusion of any amendments ordered by the City Council as a result of the Public Hearing. Post Formation Proceedings A. Record Assessment Diagrams The Assessment Engineer will coordinate the recordation of the Assessment Diagrams, Assessment Roll, and Notice of Assessment with the.County Recorder as prescribed by code. B. Mail Pre-Payment Notices The Assessment Engineer will mail the Pre-Payment Notices to the property owners with the pre-payment terms and amounts stipulated as part of the 30 day cash collection period. The Assessment Engineer will also be available to answer any questions from property owners during the 30 day cash collection period. The Assessment Engineer will also keep a log of all pre-payments received by the City, with the City providing that information to the Assessment Engineer. At the end of the 30 day cash collection period, a paid/unpaid list will be prepared by the Assessment Engineer and submitted to the City Treasurer. C. Review Preliminary Official Statement The Assessment Engineer will assist in the preparation and review of the Official Statement Document prepared by the underwriter for accuracy of content as it relates to the assessment district properties, spread methodology, and as it relates to the total amount of bond and the engineer's estimate of cost and expenses included in the final Engineer's Report. D. Submit Assessments to the County The Assessment Roll regarding the annual levy will be submitted by computer tape to the Riverside County Auditor/Controller for inclusion on tax bills on or before August 10 of the appropriate fiscal year. qA4.5000 H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21. 2003 -14- EXHIBIT"B" SPECIAL REQUIREMENTS Add the following to: Section 5.3,Performance Bond,is waived H:\USERS\BobM\Webb.Assess.E n g r.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -15- EXHIBIT"C" SCHEDULE OF COMPENSATION Webb Associates proposes that compensation for assessment engineering for the "Preliminary Report" Phase be an amount of $22,000.00. In addition to the basic contract, incidental expenses incurred in connection with the work will be billed at our costs plus 15% for outside services at our costs plus 15%. Incidental expenses include costs for reproduction,postage, mileage, fax, and telephone charges. In the event the proceedings are abandoned prior to the completion of the "Preliminary Report" Phase, Webb Associates would invoice the City for actual time and materials expended on the project at the hourly rates set forth in the attached fee schedule (Table I). Webb Associates proposes that compensation for assessment engineering for the "Final Report" Phase be an amount of $7,000.00. In addition to the basic contract, incidental expenses incurred in connection with the work will be billed at our costs plus 15% for outside services at our costs plus 15%. Incidental expenses include costs for reproduction,postage,mileage,fax, and telephone charges. In the event the proceedings are abandoned prior to the sale of bonds, Webb Associates would invoice the City for actual time and materials expended on the project at the hourly rates set forth in the attached fee schedule(Table I). 97 H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -16- EXHIBIT feC" SCHEDULE OF COMPENSATION A L B E RRT RA. WEBB ASSOCIATES FEE SCHEDULE EYGLYEEHIISG CGYSnLTAhTS RATES CLASSIFICATION S/HOUR Eneirreerins Services PrincipalEngineer.................................................................................................................... 128.00 SeniorEngineer........................................................................................................................ 112.00 ProjectManager....................................................................................................................... 102.00 Assistant Project Manager....................................................................................................... 78.00 Engineer................................................................................................................................... 92.00 Associate Engineer................................................................................................................... 78.00 SeniorDesigner -..................................................................................................................... 75.00 Designer .................................................................................................................................. 68.00 SeniorCADD Operator............................................................................................................ 57.00 CADDOperator........................................................................................................................ 46.00 Environmental Services Principal Environmental Specialist ........................................................................................... 110,00 Senior Environmental Specialist............................................................................................... 98.00 Environmental Specialist.......................................................................................................... 86.00 Associate Environmental Specialist .......................................................................................... 74.00 Environmental Coordinator ..................................................................................................... 62.00 Assessment/Special Tax Services PrincipalAssociate................................................................................................................... 124.00 SeniorAssociate........................................................................................................................ 108.00 Associate.................................................................................................................................. 92.00 Analyst..................................................................................................................................... 77.00 AssistantAnalyst................................................................................................................7..... 68.00 Survey/Inspection Services 3-Man Survey Party................................................................................................................... 185.00 2-Man Survey Party.................................................................................................................. 154.00 1-Man Survey Party.................................................................................................................. 95.00 PrincipalInspector.................................................................................................................... 75.00 SeniorInspector........................................................................................................................ 70.00 Inspector................................................................................................................................... 65.00 Survey/Inspector Vehicle......................................................................................................... .60 Per Mile Support Services Information Systems Consultant................................................................................................ 72.00 Admmismative Assistant........................................................................................................... 56.00 WordProcessor......................................................................................................................... 39.00 Clerical.................................................................................................................................... 26.00 Outside Services Special Consultants and Purchased Services .............................................................................Cost Plus 15% Miscellaneous IncidentalExpenses.................................................................................................................. Cost Postageand Telephone............................................................................................................. Cost Prints,Copies,and,Delivery Charges....................................................................................... Cost Travel&Subsistence ............................................................................................................... Cost Mileage.................................................................................................................................... .44 Per Mile ComputerTime........................................................................................................................ 15.00 Expert Witness Testimony and Preparation............................................................................... 275.00/Hour NOTE: Alan===bloa toehmp based on wood'viaadon and mst arliviag adinshnnus. `A FLN.NCECauGE gone and one An.d.Ka 4nmry Ye fiEN Nrmy nwienma'vmmrunpYdNaihmy p0)dayf ham dneof inaia. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -17 qft - EXHIBIT"D" SCHEDULE OF PERFORMANCE Contractor shall complete the"Preliminary Engineers Report"within 30 calendar days of Notice to Proceed from City and prior to the submittal of the Resolution of Intention to City Council to form Assessment District No. 160. (Resolution of Intention is estimated for May 7,2003).Contractor shall submit"Final Engineers Report"to City upon completion of Final Reports from the Real Estate Appraiser and Market Absorption Analyst and prior to Municipal Bond Sale projected for approximately November,2003. H:\USERS\BobM\Webb.Assess.Engr.Tr.30963.Contr.Ser.Agr.3-21-03.wpd March 21,2003 -18- EXHIBIT"E" PROJECT SITE VICINITY MAP VICINITY MAP TRAWAEW RD 9 Y' SITE z Gr z Z — . SAN RWAEL DR Al oti VISTA CHINO CITY OF PALM SPRINGS CASE NO. 5A931 PD-279 DESCRIPTION APPLICANT 'YTM 30963 App.for a Tentative Tract Map and, Century Vintage Homes Preliminary Planned Development to subdivide 83.83 acres into 308 single family lots,Zone PD-264, Sec.34 ownwoom ---H:\USERS\BobM\Webb.Assess.Engr.Tr.30963:Contr.SerAgr.3-21=03:wpd March 21, 2003 -19- qA36 Mountain Gate ' Assessment Y District No. 161 *x: Tract No. 30963r £, x , AD will Finance Approx $4 Million to Reimburse Developer for: Water and Sewer Facilities Undergrounding Utilities Gateway Drive & Hwy 111 Improvements, Exterior Landscape, Development Impact Fees (Developer Funding $898,600) Acquisition Fund $ 4,030,000 Reserve Fund 435,000 Capitalized Interest 550,000 Underwriting 110,000 Costs 220000 Total Assessment $5,345,000 Bond Term — 30 Years Effective Interest Rate — 7.0% ���&�p �� ��F��® Overall Tax Rates: Ventana (1,200 SgFt) 2.00% Ventana (1,800 SgFt) 1.85% El Dorado (1,500 SgFt) 1.88% Bonds Will Not Be Issued Until El Dorado (3,000 SgFt) 1.68% Value to Lien Equals 4 to 1 Finished Lots $15,300,000 55 Homes Built 6 080 000 Value Needed $21,380,000 Resolution of Intention May 7 Bond Issuance November 2003 MINUTE ORDER NO. AUTHORIZING A CONSULTING CONTRACT WITH ALBERT A. WEBB ASSOCIATES FOR A PRELIMINARY ENGINEER'S REPORT (PHASE 1) AT COST OF $22,000, AND FINAL ENGINEER'S REPORT (PHASE 2) AT COST OF $7,000, FOR A COMBINED COST OF $29,000, PLUS ROUTINE INCIDENTAL EXPENSES, (PAID FOR BY DEVELOPER'S DEPOSIT) FROM CENTURY CROWELL COMMUNITIES, LP (CENTURY VINTAGE HOMES) FOR THE PROPOSED FORMATION OF A 1913 ACT ASSESSMENT DISTRICT, USING 1915 ACT BONDS, FOR CERTAIN ELIGIBLE PUBLIC IMPROVEMENTS FOR THE "MOUNTAIN GATE" TRACT 30963 BY CENTURY, LOCATED AT THE NE CORNER OF N. PALM CANYON DRIVE(HWY. 111)AND GATEWAY DRIVE; CITY ASSESSMENT DISTRICT NO. 161 I HEREBY CERTIFY that this Minute Order authorizing a consulting contract with Albert A. Webb Associates for a Preliminary Engineer's Report(Phase 1)at a cost of$22,000,and Final Engineer's Report (Phase 2) at a cost of $7,000, for a combined cost of $29,000, plus routine incidental expenses, (paid for by Developer's deposit) from Century Crowell Communities, LP (Century Vintage Homes) for the proposed formation of a 1913 Act Assessment District, using 1915 Act Bonds, for certain eligible public improvements for the "Mountain Gate" Tract 30963 by Century, located at the NE corner of N. Palm Canyon Drive(Hwy. 111)and Gateway Drive; City Assessment District No. 161, was adopted by the City Council of the City of Palm Springs, California, in a meeting therof held on the 2"d day of April, 2003. PATRICIA A. SANDERS City Clerk