HomeMy WebLinkAboutC-1986 - Tideland permit fees commercial study4k
October 14, 1977
George Hamilton Jones, M.A.I.
3171 Via Lido
Newport Beach, CA 9 2663
Subject: Tidelands Study Agreement
Attached is a fully executed copy of the above referenced agreement
which was authorised by Resolution No. 9 207 at the City of Newport
Beach Council meeting of October 11, 1977.
Doris George
City Clerk
eg
Att.
cc: Marine Department
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TO- FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. Von
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CITY OF NEWPORT BEACH
CALIFORNIA
City Hall
3300 W. Newport Blvd.
Area Code 714
1mm'MM1111WIVI��
Description of Contract Study/rIdeland Pexodt 70"
Authorized by Resolution No. 9207 , adopted on oatoUx 11, 1977
Effective date of Contract October 130 1977
Contract with fool" MmIlten STOWSP M.A.Z.
Address 3471 Vla Lido
Nowpore Mach, CA 92"3
Amount of Contract S&@ Ccmtrsat
I City Clerk q
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AGREEMENT FOR APPRAISAL SERVICES
(Tideland Permit Fees - Commercial Valuation Study)
This Agreement is made and entered into this / fit.
day of L -C -, 1977, by and between the CITY OF NEWPORT
BEACH, a municipal corporation, hereinafter referred to as
"City" and GEORGE HAMILTON JONES, M.A.I., hereinafter referred
to as "Consultant ".
W I T N E S S E T H:
WHEREAS, City has determined that it is desirable
and necessary to conduct a study of possible methods of assessing
a fair rental return for City tidelands currently being used
for commercial purposes within the Harbor; and
WHEREAS, Consultant has submitted a proposal dated
January 31, 1977 to perform said study; and
WHEREAS, the information to be provided by the Study
will supply the City with necessary data from which to establish
a system of tideland permit fees; and
WHEREAS, Consultant is qualified to undertake and
complete such a study for the City; and
WHEREAS, City has determined that it desires to accept
said proposal;
NOW, THEREFORE, IN CONSIDERATION of the premises, the
parties hereto agree as follows:
1. General. (A) City engages Consultant to perform
the services hereinafter described for the compensation herein
stated.
(B) Consultant agrees to perform said services upon
the terms and conditions hereinafter set forth.
2. Services to be Performed By Consultant. Consultant
hereby agrees to perform the services as outlined in the proposal
•
dated January 31, 1977, a copy of which is attached hereto,
marked Exhibit "A" and which is incorporated herein by this
reference as if fully set forth. Consultant further shall, as
a part of this agreement, make public presentations to
interested groups and persons to explain the study and the
results of the study.
If conflicts occur between this agreement and said
proposal, the terms of this agreement shall control. Consultant
agrees to coordinate his activities with the City Manager, the
Marine Director and the City Attorney, as needed.
3. Duties of City. City agrees to provide
Consultant with such information, materials and consultation
services as are reasonably necessary to assist Consultant and
to provide Consultant with such data, maps, statistics and other
relevant materials owned or controlled by City for preparation
and completion of the work hereunder.
4. Ownership of Project Documents. All reports, maps,
notes, studies and other documents shall become the property
of the City, upon completion, and may be reproduced as deemed
necessary by City.
5. Right of Termination. City reserves the right
to terminate this agreement at any time upon giving Consultant
five (5) working days prior written notice. Notice shall be
deemed served on Consultant two (2) days after deposit in the
United States Mail postage prepaid, addressed to Consultant's
office at 3471 Via Lido, Newport Beach, California 92663. In
the event of termination due to fault of Consultant, City shall
be relieved of any obligation to compensate Consultant beyond
compensation paid to Consultant prior to termination. If this
agreement is terminated for any other reason than fault of
Consultant, City agrees to compensate Consultant for the actual
services performed to the effective date of notice of
termination, on the basis of the fee schedule contained in the
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1 • •
proposal.
6. Completion of Work. Consultant agrees to complete
all work described herein not later than six (6) months after
the date of execution of this Agreement.
7. Fee Schedule and Payment. (A) In consideration
of the above described services, City agrees to pay Consultant
an amount based upon the hourly rates set forth in the proposal.
In no event, however, shall the total compensation exceed
Sixteen Thousand Dollars ($16,000.00), except as provided in
paragraph 8.
(B) The contract amount shall be paid to Consultant
upon submittal of monthly progress billings based upon the
amount of work done during the preceding month. The sum of
monthly partial payment shall not exceed ninety percent (908)
of the maximum fee. Upon acceptance of the final report by City,
the balance of the total amount earned shall be paid to
Consultant. Acceptance of the final report will not be unreason-
ably withheld.
8. Amendments. The scope of the services to be
furnished by Consultant may be changed and the maximum fee
revised upon prior written approval of the City Manager, if
the increase in the maximum fee does not exceed One Thousand
Six Hundred Dollars ($1,600). If any proposed revision of the
scope of services results in an increase of a maximum fee
exceeding said amount, an amendment to this agreement providing
for such revision shall be processed and executed by the
parties hereto.
9. Hold Harmless. Consultant shall indemnify and
hold harmless City, its officers and employees, from any damage
or liability arising from the errors, omissions, or negligence
in Consultant's performance of this Agreement or in the
consulting services herein provided.
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IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed the day and year first above
written.
ATTEST:
I L-t�
City Clerk
CITY OF NEWPORT BEACH, A
Municipal Corporation
M. I /
GEORGE HAMILTON JONES, M.A.I.
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APPRAISAL CONSULTANT `Ufl
(nal fi» -P7JJ SUITE. 207 Aw!• .11""
3A71 VIA LIDO RLA ♦ YwTC ?ggAlg Eq9 \
NCHPOR'r B ZAGII. CALIFORNIA 92660
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January 31, 1977
Mr_ Robert L. Wynn
City Manager %�� (� ,L 5'
City of Newport Beach
City Hall
Newport Beach, California 92663 Re: Tideland Permit Fees - Commercial
Valuation Study
Dear Mr. Wynn:
It is my understanding that the City of Newport Beach is in
the process of studying possible methods of assessing a fair rental
return for City tidelands currently being used for commercial purposes
within the Harbor,
On January 18, 1977 you requested this office to submit a pro-
posal of probable appraisal fees to assist in this study.
Our concentration In this work would be to judge the economic
worth of the subject water areas to the commercial entities with which
they are currently being utilized_ Since such uses are of great diversity
within the Harbor, they will be classified into various categories before
a sensitive analysis can be made. In accordance with your staff inven-
tory study, there appears to be seven main groups of commercial operations
with which adjacent tidelands are being used. (These classifications
may change in our actual study). They are:
1. Restaurants 5, Private clubs
2. Shipyards 6. Fuel docks
3. Boat sales and rentals 7. Miscellaneous
4. Marinas
After estimation of the economic value of the tidelands area, a
computation of fair rental value shall be made utilizing what would be
considered appropriate rates of return_ Since even within each of these
various classifications there is a wide range of specific type and in-
tensity of water use available, the final rental judgment in all proba-
bility will be a range, i.e. , an upper limit and lower limit indicator.
From this would ultimately be obtained an equation which would be
applicable to the firing of an equitable permit fee for the specific
parcel.
EXIIIBIT "A"
Mr. Robert L. Wynn - 2 -- January 31, 1977
It is my opinion that this endeavor may be most efficiently and
economically carried out by utilizing that factual data (inventory, etc.)
which has been assembled by the City staff. This information will be
confirmed by our analysis and expanded as found necessary.
In the research data acquisition phase of our analysis, we
will be reviewing the basis of fees charged in those other harbors of
Southern California which can be considered at least of some compara-
bility to Newport Harbor.
Since the total scope of the valuation study is at this time some-
what indefinite and greatly dependent on what emerges from the early
phase of the investigation, it is my judgment that a per diem basis of
appraisal fee should be utilized.
We would submit to you either monthly or semi - monthly a docu-
mented accounting of time spent on the assignment and the resulting
charges would be based upon $50 per hour for my time and /or $30 per
hour for that of my associates. (Either Mr. William Hansen or Gary Vogt).
This has been our established per diem rate with the City of Newport
Beach, other governmental agencies, and clients for the last several
years.
We would be in close contact with you, City Attorney O'Neil,
and Dave Harshbarger throughout the project and would be reporting
our progress periodically.
It would appear at this time that the fee for the initial phase of
the study shall be In the order of $10,000 to $12,000.
It is my understanding that the conclusions shall be rendered
on or before May 12, 1977. The report shall be submitted in quintu-
plicate and prepared in accordance with the Standards of practice of
the American Institute of Real Estate Appraisers .
If there are any questions concerning the above discussion,
please do not hesitate to call. I will assume that you will be in
contact relative to the above matter in the near future.
Thank you for giving this office consideration on the matter.
APPROVED AS TO FORM AND SUBSTANCE
Dated 1 - 1
ROBERT L. WYNN, CITY MANGER _
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DENNIS D. O'NEIL, CITY ATTORNEY
Yours truly,
George Hamilton Jones, M.A.I.
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RESOLUTION. ,NO. 9207
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE
CITY OF NEWPORT BEACH AND GEORGE HAMILTON JONES,
M.A.I. IN CONNECTION WITH TIDELAND PERMIT FEES
(COMMERCIAL VALUATION STUDY)
WHEREAS, there has been presented to the City Council
of the City of Newport Beach a certain agreement between the
City of Newport Beach and George Hamilton Jones, M.A.I. in
connection with Tideland Permit Fees (Commercial Valuation
Study); and
WHEREAS, the City Council has reviewed the terms and
conditions of said agreement and finds them to be satisfactory
and that it would be in the best interest of the City to
authorize the Mayor and City Clerk to execute said agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Newport Beach that said agreement above described
is hereby approved, and the Mayor and City Clerk are authorized
and directed to execute the same on behalf of the City of
Newport Beach.
ADOPTED this 11th day of October , 1977.
Mayor
ATTEST:
City Clerk
DDO /bc
10/4/77