HomeMy WebLinkAboutC-4374 - PSA for Appraisal of 608 E. Balboa BoulevardC
PROFESSIONAL SERVICES AGREEMENT WITH
RICHARD A. FULLER CONSULTING
FOR APPRAISAL OF 608 E. BALBOA BOULEVARD
THIS AGREEMENT is made and entered into as of this lAay of September, 2009,
by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City"),
and RICHARD A FULLER CONSULTING, a , whose address is
4910 Campus Drive, Newport Beach, California, 92660 -2119 ( "Consultant "), and is
made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now
being conducted under the statutes of the State of California and the Charter of
City.
B. City desires an appraisal of the property located at 608 E. Balboa Boulevard.
C. City desires to engage Consultant to conduct the above - referenced appraisal
( "Project").
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Consultant for purposes of the Project shall be Richard
A. Fuller.
F. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on the 31st day of December 2009, unless terminated earlier as set forth
herein.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the letter proposal
attached hereto as Exhibit "A" and incorporated herein by reference.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
Consultant shall perform the services by October 15, 2009. The failure by
Consultant to strictly adhere to the schedule may result in termination of this
Agreement by City.
Notwithstanding the foregoing, Consultant shall not be responsible for delays
due to causes beyond Consultant's reasonable control. However, in the case of
any such delay in the services to be provided for the Project, each party hereby
agrees to provide notice to the other party so that all delays can be addressed.
3.1 Consultant shall submit all requests for extensions of time for
performance in writing to the Project Administrator not later than ten (10)
calendar days after the start of the condition that purportedly causes a
delay. The Project Administrator shall review all such requests and may
grant reasonable time extensions for unforeseeable delays that are
beyond Consultant's control.
3.2 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the
circumstances, by either telephone, fax, hand - delivery or mail.
4. COMPENSATION TO CONSULTANT
City shall pay Consultant for the services on a time and expense not -to- exceed
basis in accordance with the provisions of this Section and rates in Exhibit "A ".
Consultant's compensation for all work performed in accordance with this
Agreement, including all reimbursable items and subconsultant fees, shall not
exceed Twelve Thousand and no1100 Dollars ($12,000.00) without prior
written authorization from City.
Consultant may be requested by City to attend meetings associated with the
Services performed under this Agreement. If Consultant attends meetings at
City's request, Consultant shall be compensated at the rate of Two Hundred
Twenty-Five and no /100 Dollars ($225) per hour, which is in addition to the
compensation limit provided in this section. No billing rate changes shall be
made during the term of this Agreement without the prior written approval of City.
4.1 Consultant shall submit an invoice to City describing the work performed.
Consultant's bill shall include the name of the person who performed the
work, a brief description of the services performed, the date the services
were performed, the number of hours spent on all work billed on an hourly
basis, and a description of any reimbursable expenditures. City shall pay
Consultant no later than thirty (30) days after approval of the monthly
invoice by City staff.
4.2 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing
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in advance by City. Unless otherwise approved, such costs shall be
limited and include nothing more than the following costs incurred by
Consultant:
A. The actual costs of subconsultants for performance of any of the
services that Consultant agrees to render pursuant to this
Agreement, which have been approved in advance by City and
awarded in accordance with this Agreement.
B. Approved reproduction charges.
C. Actual costs and/or other costs and /or payments specifically
authorized in advance in writing and incurred by Consultant in the
performance of this Agreement.
5. PROJECT MANAGER
Consultant shall designate a Project Manager, who shall coordinate all phases of
the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated Richard Fuller to
be its Project Manager. Consultant shall not remove or reassign the Project
Manager or assign any new or replacement personnel to the Project without the
prior written consent of City. City's approval shall not be unreasonably withheld
with respect to the removal or assignment of non -key personnel.
Consultant, at the sole discretion of City, shall remove from the Project any of its
personnel assigned to the performance of services upon written request of City.
Consultant warrants that it will continuously furnish the necessary personnel to
complete the Project on a timely basis as contemplated by this Agreement.
6. ADMINISTRATION
This Agreement will be administered by the City Manager's Office. Sharon
Wood shall be the Project Administrator and shall have the authority to act for
City under this Agreement. The Project Administrator or his/her authorized
representative shall represent City in all matters pertaining to the services to be
rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of its responsibilities under this
Agreement, City agrees to provide access to, and upon request of Consultant,
one copy of all existing relevant information on file at City. City will provide all
such materials in a timely manner so as not to cause delays in Consultant's work
schedule.
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8. STANDARD OF CARE
8.1 All of the services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and
technical personnel required to perform the services required by this
Agreement, and that it will perform all services in a manner
commensurate with community professional standards. All services shall
be performed by qualified and experienced personnel who are not
employed by City, nor have any contractual relationship with City. By
delivery of completed work, Consultant certifies that the work conforms to
the requirements of this Agreement and all applicable federal, state and
local laws and the professional standard of care.
8.2 Consultant represents and warrants to City that it has, shall obtain, and
shall keep in full force in effect during the term hereof, at its sole cost and
expense, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature that is legally required of Consultant to practice its
profession. Consultant shall maintain a City of Newport Beach business
license during the term of this Agreement.
8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by
reason of strikes, lockouts, accidents, or acts of God, or the failure of City
to furnish timely information or to approve or disapprove Consultant's
work promptly, or delay or faulty performance by City, contractors, or
governmental agencies.
9. HOLD HARMLESS
To the fullest extent permitted by law, Consultant shall indemnify, defend and
hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers, and employees (collectively, the "Indemnified Parties ") from and
against any and all claims (including, without limitation, claims for bodily injury,
death or damage to property), demands, obligations, damages, actions, causes
of action, suits, losses, judgments, fines, penalties, liabilities, costs and
expenses (including, without limitation, attorney's fees, disbursements and court
costs) of every kind and nature whatsoever (individually, a Claim; collectively,
"Claims "), which may arise from or in any manner relate (directly or indirectly) to
any breach of the terms and conditions of this Agreement, any work performed
or services provided under this Agreement including, without limitation, defects in
workmanship or materials or Consultant's presence or activities conducted on
the Project (including the negligent and/or willful acts, errors and/or omissions of
Consultant, its principals, officers, agents, employees, vendors, suppliers,
consultants, subcontractors, anyone employed directly or indirectly by any of
them or for whose acts they may be liable or any or all of them).
Notwithstanding the foregoing, nothing herein shall be construed to require
Consultant to indemnify the Indemnified Parties from any Claim arising from the
sole negligence or willful misconduct of the Indemnified Parties. Nothing in this
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indemnity shall be construed as authorizing any award of attorney's fees in any
action on or to enforce the terms of this Agreement. This indemnity shall apply
to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by the Consultant.
10. INDEPENDENT CONTRACTOR
It is understood that City retains Consultant on an independent contractor basis
and Consultant is not an agent or employee of City. The manner and means of
conducting the work are under the control of Consultant, except to the extent
they are limited by statute, rule or regulation and the expressed terms of this
Agreement. Nothing in this Agreement shall be deemed to constitute approval
for Consultant or any of Consultant's employees or agents, to be the agents or
employees of City. Consultant shall have the responsibility for and control over
the means of performing the work, provided that Consultant is in compliance with
the terms of this Agreement. Anything in this Agreement that may appear to give
City the right to direct Consultant as to the details of the performance or to
exercise a measure of control over Consultant shall mean only that Consultant
shall follow the desires of City with respect to the results of the services.
11. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated
Project Administrator and any other agencies that may have jurisdiction or
interest in the work to be performed. City agrees to cooperate with the
Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project
direction with City's Project Administrator in advance of all critical decision points
in order to ensure the Project proceeds in a manner consistent with City goals
and policies.
13. PROGRESS
Consultant is responsible for keeping the Project Administrator and /or his/her
duly authorized designee informed on a regular basis regarding the status and
progress of the Project, activities performed and planned, and any meetings that
have been scheduled or are desired.
14. INSURANCE
Without limiting Consultant's indemnification of City, and prior to commencement
of work, Consultant shall obtain, provide and maintain at its own expense during
the term of this Agreement, a policy or policies of liability insurance of the type
and amounts described below and in a form satisfactory to City.
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A. Certificates of Insurance. Consultant shall provide certificates of
insurance with original endorsements to City as evidence of the insurance
coverage required herein. Insurance certificates must be approved by
City's Risk Manager prior to commencement of performance or issuance
of any permit. Current certification of insurance shall be kept on file with
City at all times during the term of this Agreement.
B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
C. Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner
to transact business of insurance in the State of California, with an
assigned policyholders' Rating of A (or higher) and Financial Size
Category Class VII (or larger) in accordance with the latest edition of
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
D. Coverage Requirements.
Workers' Compensation Coverage. Consultant shall maintain
Workers' Compensation Insurance and Employer's Liability
Insurance for his or her employees in accordance with the laws of
the State of California. In addition, Consultant shall require each
subcontractor to similarly maintain Workers' Compensation
Insurance and Employer's Liability Insurance in accordance with
the laws of the State of California for all of the subcontractor's
employees. Any notice of cancellation or non - renewal of all
Workers' Compensation policies must be received by City at least
thirty (30) calendar days (10 calendar days written notice of non-
payment of premium) prior to such change. The insurer shall agree
to waive all rights of subrogation against City, its officers, agents,
employees and volunteers for losses arising from work performed
by Consultant for City.
Automobile Liability Coverage. Consultant shall maintain
automobile insurance covering bodily injury and property damage
for all activities of the Consultant arising out of or in connection with
work to be performed under this Agreement, including coverage for
any owned, hired, non -owned or rented vehicles, in an amount not
less than one million dollars ($1,000,000) combined single limit for
each occurrence.
E. Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
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respect to liability arising out of work performed by or on behalf of
the Consultant.
ii. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents
and volunteers as respects to all claims, losses, or liability arising
directly or indirectly from the Consultant's operations or services
provided to City. Any insurance maintained by City, including any
self- insured retention City may have, shall be considered excess
insurance only and not contributory with the insurance provided
hereunder.
iii. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with
respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
V. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed
officers, officials, employees, agents or volunteers.
vi. The insurance provided by this policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits, by either
party except after thirty (30) calendar days (10 calendar days
written notice of non - payment of premium) written notice has been
received by City.
F. Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claim made or suit instituted arising out of or resulting from
Consultant's performance under this Agreement.
G. Additional Insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the work.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following
shall be construed as an assignment: The sale, assignment, transfer or other
disposition of any of the issued and outstanding capital stock of Consultant, or of
the interest of any general partner or joint venturer or syndicate member or
cotenant if Consultant is a partnership or joint- venture or syndicate or cotenancy,
which shall result in changing the control of Consultant. Control means fifty
percent (50 %) or more of the voting power, or twenty-five percent (25 %) or more
of the assets of the corporation, partnership or joint- venture.
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16. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of
Consultant. Assignments of any or all rights, duties or obligations of the
Consultant under this Agreement will be permitted only with the express written
consent of City. Consultant shall not subcontract any portion of the work to be
performed under this Agreement without the prior written authorization of City.
17. OWNERSHIP OF DOCUMENTS
Each and every report, draft, map, record, plan, document and other writing
produced (hereinafter "Documents "), prepared or caused to be prepared by
Consultant, its officers, employees, agents and subcontractors, in the course of
implementing this Agreement, shall become the exclusive property of City, and
City shall have the sole right to use such materials in its discretion without further
compensation to Consultant or any other party. Consultant shall, at Consultant's
expense, provide such Documents to City upon prior written request.
Documents, including drawings and specifications, prepared by Consultant
pursuant to this Agreement are not intended or represented to be suitable for
reuse by City or others on any other project. Any use of completed Documents
for other projects and any use of incomplete Documents without specific written
authorization from Consultant will be at City's sole risk and without liability to
Consultant. Further, any and all liability arising out of changes made to
Consultant's deliverables under this Agreement by City or persons other than
Consultant is waived against Consultant and City assumes full responsibility for
such changes unless City has given Consultant prior notice and has received
from Consultant written consent for such changes.
18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
The Consultant shall defend and indemnify City, its agents, officers,
representatives and employees against any and all liability, including costs, for
infringement of any United States' letters patent, trademark, or copyright
infringement, including costs, contained in Consultant's drawings and
specifications provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the work to be
performed under this Agreement. Consultant shall maintain complete and
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accurate records with respect to the costs incurred under this Agreement and
any services, expenditures and disbursements charged to City, for a minimum
period of three (3) years, or for any longer period required by law, from the date
of final payment to Consultant under this Agreement. All such records and
invoices shall be clearly identifiable. Consultant shall allow a representative of
City to examine, audit and make transcripts or copies of such records and
invoices during regular business hours. Consultant shall allow inspection of all
work, data, Documents, proceedings and activities related to the Agreement for a
period of three (3) years from the date of final payment to Consultant under this
Agreement.
21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction
of the dispute with respect to such payment. Such withholding shall not be
deemed to constitute a failure to pay according to the terms of this Agreement.
Consultant shall not discontinue work as a result of such withholding. Consultant
shall have an immediate right to appeal to the City Manager or his /her designee
with respect to such disputed sums. Consultant shall be entitled to receive
interest on any withheld sums at the rate of return that City earned on its
investments during the time period, from the date of withholding of any amounts
found to have been improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what
would have resulted if there were not errors or omissions in the work
accomplished by Consultant, the additional design, construction and/or
restoration expense shall be borne by Consultant. Nothing in this paragraph is
intended to limit City's rights under the law or any other sections of this
Agreement.
23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the
Project.
24. CONFLICTS OF INTEREST
The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act "), which (1) requires such
persons to disclose any financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making, decisions that will foreseeably
financially affect such interest.
If subject to the Act, Consultant shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for immediate
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termination of this Agreement by City. Consultant shall indemnify and hold
harmless City for any and all claims for damages resulting from Consultant's
violation of this Section.
25. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served
when delivered personally, or on the third business day after the deposit thereof
in the United States mail, postage prepaid, first -class mail, addressed as
hereinafter provided. All notices, demands, requests or approvals from
Consultant to City shall be addressed to City at:
Attn:
Sharon Wood, Assistant City Manager
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
Phone: 949 - 644 -3222
Fax: 949 - 644 -3020
All notices, demands, requests or approvals from CITY to Consultant shall be
addressed to Consultant at:
Attention:
Richard A.Fuller
4910 Campus Drive
Newport Beach, CA 92660 -2119
Phone: 949 - 644 -4040
Fax: 949 - 660 -7075
26. TERMINATION
In the event that either party fails or refuses to perform any of the provisions of
this Agreement at the time and in the manner required, that party shall be
deemed in default in the performance of this Agreement. If such default is not
cured within a period of two (2) calendar days, or if more than two (2) calendar
days are reasonably required to cure the default and the defaulting party fails to
give adequate assurance of due performance within two (2) calendar days after
receipt of written notice of default, specifying the nature of such default and the
steps necessary to cure such default, and thereafter diligently take steps to cure
the default, the non - defaulting party may terminate the Agreement forthwith by
giving to the defaulting party written notice thereof.
Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving
seven (7) calendar days prior written notice to Consultant. In the event of
termination under this Section, City shall pay Consultant for services
satisfactorily performed and costs incurred up to the effective date of termination
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for which Consultant has not been previously paid. On the effective date of
termination, Consultant shall deliver to City all reports, Documents and other
information developed or accumulated in the performance of this Agreement,
whether in draft or final form.
27. COMPLIANCE WITH ALL LAWS
Consultant shall at its own cost and expense comply with all statutes,
ordinances, regulations and requirements of all governmental entities, including
federal, state, county or municipal, whether now in force or hereinafter enacted.
In addition, all work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
28. WAIVER
A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
29. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal
agreement or implied covenant shall be held to vary the provisions herein.
30. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement
and the Scope of Services or any other attachments attached hereto, the terms
of this Agreement shall govern.
31. 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 the Agreement or any other rule of construction
which might otherwise apply.
32. AMENDMENTS
This Agreement may be modified or amended only by a written document
executed by both Consultant and City and approved as to form by the City
Attorney.
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33. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of
this Agreement shall continue in full force and effect.
34. CONTROLLING LAW AND VENUE
The laws of the State of California shall govern this Agreement and all matters
relating to it and any action brought relating to this Agreement shall be
adjudicated in a court of competent jurisdiction in the County of Orange.
35. EQUAL OPPORTUNITY EMPLOYMENT
Consultant represents that it is an equal opportunity employer and it shall not
discriminate against any subcontractor, employee or applicant for employment
because of race, religion, color, national origin, handicap, ancestry, sex or age.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
4p�� C ffc—�
City Attorney
for the City of Newport Beach
ATTEST:
By:
_O��L- P.
Leilani Brown,
City Clerk
Attachment
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CITY OF NEWPORT BEACH,
A Municipal Corporation
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for the ity of Newport Beach
CONSULT
Exhibit "A" — Proposal Letter
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Ric4hrd A. Fuller,
RICHARD A. FULLER. CONSULTING
RICHARD A. FULLER, MAI
REAL ESTATE
• CONSULTATION • VALUATION
MEMBER. APPRAISAL INSTITUTE
MEMBER. AMERICAN RIGHT OF WAY ASSOCIATION
CERTIFIED GENERAL APPRAISER
Ms. Sharon Wood
Assistant City Manager
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
Dear Ms. Wood:
4910 CAMPUS DRIVE
NEWPORT BEACH, CALIFORNIA 92660 -2119
August 18, 2009
Exhibit A
• TELEPHONE: 19491 6414000
• FACSIMILE: (9491 660 -7076
• EMAIL' RFVLLEPGFULLCON,COM
RE: Appraisal of the Balboa Market
608 E. Balboa Blvd.
Newport Beach, California
Based upon your request on August 14, 2009, 1 am submitting this proposal for the
appraisal of the above- referenced property by estimating the market value of said property, as
of current date.
REPORT
This appraisal report will be submitted in summary form. All market data, factual data,
reasoning, computations, descriptions, analyzes, photographs, and discussions, from which,
in part, the valuation conclusion was derived, will be summarized within the report, with the
supportive data retained in my files.
INTENDED USE AND INTENDED USER
It is the understanding of the appraiser that the intended user of this appraisal is the City of
Newport Beach and the intended use of this appraisal is to assist the intended user in reporting
the market value for valuation purposes.
SCOPE OF ASSIGNMENT
The scope of work for this appraisal, consistent with the intended use is set out as
follows:
Solving the problem by expressing an opinion of the market value , of the fee
simple estate, in the subject property.
2. Developing credible assignment results by physically inspecting the subject
property; completing a market study of the comparable market data; analyzing
the physical characteristics of the subject property; completing a highest and
best use study; comparing the market data to the subject property; employing
the pertinent valuation techniques; and forming an opinion as to the market
value of the fee simple estate.
• FORENSIC VALUATION • EXPERT WITNESS • ESTATES AND TRUSTS • PROPERTY ACOUISITION
• LITIGATION SUPPORT • EMINENT DOMAIN • ARBITRATION • PROPERTY DISPOSITION
Ms. Sharon Wood
City of Newport Beach
August 18, 2009
Page Two
FEE
The fee for this assignment will be based on the appraisers hourly rate of $225. It is
estimated that 40 - 50 hours will be required to complete this assignment. Meetings,
conferences and changes, as required by the client, will be billed at an hourly rate of $225 /hour.
Testimony, if required, will be billed at an hourly rate of $375 for Mr. Fuller's time.
In addition to the fee for this assignment, you agree to the reimbursement of out -of-
pocket costs including, but not limited to, necessary and mutually- agreed overnight lodging and
related meals, overnight mail, messengers, photocopying and secretarial assistance,
environmental hazard reports, aerial photographs, preliminary title reports and market data
services.
This fee will include two copies of the appraisal report. Additional copies will be provided
at a cost of $200 per report. This proposal assumes that written authorization to proceed will
be received by August 26, 2009.
ASSUMPTION AND LIMITING CONDITIONS
The preparation of this appraisal report may include the following assumptions and
limiting conditions:
1) That I assume no responsibility for matters legal in character, nor do I render any
opinion as to the title which is assumed to be good. All existing liens, and
encumbrances, securing payment of money, have been disregarded, and the
property is appraised as though free and clear under responsible ownership and
competent management.
2) That information obtained for use in this appraisal is believed to be true and
correct to the best of my ability. However, no responsibility is assumed for errors
or omissions, or for information not disclosed which might otherwise affect the
valuation estimate.
3) That disclosure of the contents of this appraisal report is governed by the Code
of Professional Ethics and the Standards of Professional Practice of the
Appraisal Institute and the Uniform Standards of Professional Appraisal Practice
(USPAP).
4) That, neither all, nor any part, of the contents of this report (especially any
conclusions as to the value, the identity of the appraiser, or the firm with which
he is connected, or any reference to the Appraisal Institute, or the MAI
designation) shall be disseminated to the public through advertising media,
public relations, news media, sales media, or any other public means of
communication without prior written consent and approval of the undersigned.
5) That engineering, architectural, and title company services, if required, will be
the responsibility of the client.
Ms. Sharon Wood
City of Newport Beach
August 18, 2009
Page Three
6) That the interest to be appraised is fee simple estate
7) That unless otherwise stated in this report, the existence of hazardous
substances, including without limitation, asbestos, urea formaldehyde, foam
insulation, polychlorinated biphenyls, petroleum leakage, or agricultural
chemicals, which may or may not be present on the property, or other
environmental conditions, were notcalled to the attention of nor did the appraiser
become aware of such during the appraiser's inspection. The value estimated
is predicated on the assumption that there is no such condition on or in the
property or in such proximity thereto that it would cause a loss in value. No
responsibility is assumed for any such conditions, nor for any expertise or
engineering knowledge required to discover them.
8) That all maps and exhibits included within this report are for illustration purposes
only and are set out to assist the reader in visualizing the property. However, no
survey of the subject site has been made and no liability is assumed in
connection with such matters.
9) That the appraiser assumes no responsibility for hidden or unapparent
conditions of the property that may render it more or less valuable, or for
arranging for engineering studies that may be required to discover them, or for
the payment of ordered studies.
10) That if the client has any question regarding the property's conformity to specific
governmental requirements, such as fire, building and safety, earthquake or
occupancy codes, it is the client's responsibility to arrange for and to pay for
specific professional or governmental inspections.
11) That the property is appraised assuming all required licenses, certificates of
occupancy, consents, or other legislative or administrative authority from any
local, state or federal government or private entity or organization have been or
can be obtained or renewed for any use that the value estimate contained in this
report is based, unless otherwise stated.
12) That, although the structure was inspected, and no evidence of termites, dry rot,
wet rot, or other infestations were observed, no guarantee of same is implied
here and this appraisal is subject to an inspection by a licensed pest control
inspector.
13) That, as no hydrology studies were available for review, it is assumed that any
drainage sheet flow through the subject property would be contained and the
property under appraisement would not be subject to inundation. The value
conclusion is subject to review by a qualified civil engineer.
14) That any future development of the subject site would be supportable from a
detailed engineering report. This study would include an analysis of soils,
boundaries, engineering, topography, utilities, grading hydrology, and other
factors necessary for the development of the property.
Ms. Sharon Wood
City of Newport Beach'
August 18, 2009
Page Four
15) That a legal description and a current title report will be available for review. If
said title report is not available, the property will be appraised as if
unencumbered by easements or other conditions of the title, which would restrict
the use of the subject property, in accordance with its highest and best use. The
value conclusion is subject to review of an independent title report, which reflects
the conditions of title, as of the date of value.
16) That, as no soil tests were available to this appraiser, subsoil conditions are
considered favorable for development, but no guarantee of same is implied here.
The value conclusion is subject to final review by an independent soil engineer.
17) That no warranty is made as to the seismic stability of the subject property. The
valuation is subject to final review by an independent seismic engineer.
18) That this valuation estimate is of surface rights only, and the valuation of mineral
rights, if any, has been disregarded.
19) That no valuation will be made of furniture or other personal property which
existed within the subject property, as of the date of value.
20) That, while it is presumptive to predict what local planning agencies, city
councils, and other governmental agencies will and will not approve, it is
assumed that the subject site could be developed in accordance with its highest
and best use.
21) That this appraisal will not be utilized in making a lending decision in a federally
related transaction.
TERMS
That al is due apprais�s) gre� shall bear
arge of on one -half p en /o oft total DNQQcep
2)
pp6nie ed fo ore t in 0) days. Ind vent that anot
paid when the client s all expe s of c not
limitedtwO*`cour_t"c* IqWfees and a s' fees.
o
That the appraiser, by reason of this appraisal, is not required to give testimony,
in any proceeding, or attendance in court, with reference to the property
appraised, unless arrangements have been previously made.
That the submission of this report constitutes completion of the services
authorized. It is submitted upon the condition that the client will provide, in
advance, the appraiser's customary compensation relating to any subsequent
depositions, conferences, changes, additional preparation, review, travel or
testimony.
Ms. Sharon Wood
City of Newport Beach
August 18, 2009
Page Five
4) That, by specific instructions of the client, this report will not be prepared for litigation
purposes. If this matter is adjudicated in any manner, the appraiser reserves the
right to prepare a comprehensive narrative report, at an additional fee, and to further
review and verify the data upon which the estimate of value is based.
5)
Further, there is no accountability,
obligation or liability to any third party. If this appraisal report is placed in the hands
of anyone other than the client, the client shall make such party and /or parties aware
of all limiting conditions and assumptions of the assignment and related discussions.
Third parties are hereby notified that reliance upon this appraisal report by any third
party in any manner constitutes a waiver of the authority, dictates and provisions of
Soderberg v. McKinney (1996) 44 Cal.App.4th 1760, 52 Cal. Rptr.2d 635.
Notwithstanding the holding and rationale of said case, any third party who relies
upon this appraisal report does so at his, her, or its own risk.
7)
That the appraiser is not a necessary party in any inquiry orjudicial proceedings. He
will not be called upon to testify in any litigation or other proceeding arising out of his
duties in this matter. nqgq'fA aQ ng 94 r
8) That this report will not be prepared for condemnation purposes and, as such,
notification of the property owner, by the appraiser, will not be required.
If these terms a acceptable, yo ay authorize me to proceed by returning the signed copy
of this proposal. I ok forward to being service to you and the City of Newport Beach on this
appraisal assign nt.
'ully submitted,
Richa A. Fuller, MAI
d General eal Estate Appraiser
License Nurfiber AG003210
li?:1a171
APPROVED:
Date:
Responsible Party