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HomeMy WebLinkAbout10B - Nagell Appraisal DATE: AGENDA #: PREPARED BY: REVIEWED BY: SUBJECT: DISCUSSION: 05APPRAISALS 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCil AGENDA REPORT FEBRUARY 7TH, 2005 10B lARRY POPPlER, ASSISTANT CITY ENGINEER STEVE ALBRECHT, CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING NAGEll APPRAISAL AND CONSULTING TO PROVIDE APPRAISALS FOR THE 2005 IMPROVEMENT PROJECT HISTORY On July 19, 2004, Council adopted Resolution 04-117 ordering the preparation of a feasibility report for those projects in the 2005 Capital Improvement Program (CIP) that will be constructed pursuant to Minnesota Statutes Chapter 429 process. The Minnesota Statutes Chapter 429 process is being used because the City Council intends to specially assess a portion of the project. The roadways studied in the report include: Fish Point Road, Fairlawn Shores Trail, Frost Point Circle, Bluedorn Circle, Centennial Street, and Candy Cove Trail (TH 13 to CR 44). The recommendation of the Feasibility Report was to proceed with this project. On December 20, 2004, Council adopted Resolution 04-192 accepting the Feasibility Report and calling for a Public Hearing for the 2005 improvement project. The Public Hearing was held and continued at the January 18th, 2005 City Council meeting. CURRENT CIRCUMSTANCES Each year the Engineering Department hires a consultant to perform appraisals for representative properties on the street reconstruction project. The appraisals are done to determine the benefit the properties gain from the improvements made by the City. The City has used Nagell Appraisal and Consulting for the past two years. Complete special assessment I value benefit market appraisals are a specialized kind of appraisal in which Nagell has shown to be very competent. Quotes were not received from other appraisal companies because of the specialized nature of these type of appraisals. Nagel! Appraisal and Consulting has submitted a quote for their services in the amount of $6800.00 for five property appraisals. Staff has reviewed the price quoted by Nagell Appraisal and Consulting and feels that it is in line with quotes received in the past. Attached is the quotation letter received by Nagel Appraisal and Consulting. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: REVIEWED BY: 05APPRAISALS ISSUES Appraisals are needed to analyze the benefit properties are realizing from the improvements made by the City. Part of the work will involve a brief analysis of Flint Road to determine if the benefit received by Flint Road is in line with the proposed assessment for the neighborhood. CONCLUSION Staff recommends that the City Council adopt a resolution authorizing Nagell Appraisal and Consulting to provide appraisals for the 2005 Improvement Project. There are three alternatives for the City Council to consider: 1. Approve a resolution authorizing Nagell Appraisal and Consulting to provide appraisals for the 2005 Improvement Project. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. A motion and second to adopt a resolution authorizing Nagel! Appraisal and Consulting to provide appraisals for the 2005 Improvement Project. Stept!!:C <"-.--.<----".------"-.u.-<-""..----.--<-.--..-...~.'.-T---.".,.<"" < ._- ""<<-_. 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION OS-XX RESOLUTION AUTHORIZING NAGELL APPRAISAL AND CONSULTING TO PROVIDE APPRAISALS FOR THE 2005 IMPROVEMENT PROJECT (CITY PROJECT 05-11) MOTION BY: SECOND BY: WHEREAS, the Council conducted a Public Hearing and approved Resolution 05-xx, ordering the 2005 Improvement Projects, and WHEREAS, appraisals are required on the project to determine the value of benefit. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, 1. The recitals set forth above are incorporated herein. 2. Nagel! Appraisal and Consulting is hereby authorized to provide value benefit market appraisals for five properties for the 2005 improvement projects (Project #05-11) for a fee not to exceed the amount of $6,800.00. 3. Funding for these engineering services will be drawn from the Construction Fund. 4. The Mayor and City Manager are authorized to execute the City's standard contract for professional services on behalf of the City. Passed and adopted this 7TH day of February, 2005. YES NO HauQen Haugen FleminQ Fleming LeMair LeMair Petersen Petersen Zieska Zieska Frank Boyles, City Manager www.cityofpriorlake.com G:\Resolution\ResoI05\05appraisals.DOCPhone 952.447.4230 / Fax 952.447.4245 NAGELL APPRAISAL & CONSULTING 7515 Wayzata Boulevard, Suite #115 Minneapolis, Minnesota 55426 Established ;11 1968 Minneapolis Telephone: 952.544.8966 St. Paul Telephone: 651.209.6159 Central Fax: 952.544.8969 City of Prior Lake Attn: Larry Poppler, P.E., Assistant City Engineer 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 January 25,2005 RE: City of Prior Lake - 2005 Street Reconstruction Project. Special Assessment/V alue Benefit Appraisals (Real Estate Only) for various property owners located along Frost Point Circle, Bluedorn Circle, Candy Cove Trail, Centennial Street and Fish Point Road all located in Prior Lake, MN Dear Mr. Poppler: Thank-you for your request to prepare Complete Special Assessment / Value Benefit market value appraisals for the above referenced properties. As discussed, these appraisals would be used for the purpose of negotiations between the city officials of Prior Lake and the property owners and would estimate an opinion of the before & after value based on the proposed street reconstruction. As discussed, the appraisal will be a Complete Appraisal -- Summary Report format. A "Complete Appraisal -- Summary Report" (narrative report, 35-40 +/- pages) per US PAP guidelines is considered appropriate for your needs. These Complete Appraisals are a complete narrative summary format and will specifically adjust comparable sold properties to the subject property. The fee for such an appraisal assignment will be $1,500 each for the lakeshore properties, and $l,2S0 each for the interior off-Iakeshore properties. Fee quote is based on a total of five (5) Complete Appraisal - Summary Reports. Reportedly, (l) property is to be lakeshore and (4) are interior off-Iakeshore properties. Fee quote amount could change, if more or less appraisal assignments are needed. Total fee for the Complete Appraisal Assignment is $6,500. Also requested, is a letter report discussing value benefit for Flint Road residents. Flint Road will not undergo a reconstruction, but will have general benefit from the project. Fee for the letter report is $300. www.nagellappraisals.com -----.--.".-----.--~.-.-- - --------------."1----.----------..------.----..--.--.-.-----.----- -.--...------.--..-..----.-------------..---- Larry Poppler, P .E. City of Prior Lake, Assistant City Engineer January 25,2005 Page 2 The appraisal reports could be completed within a one-month time frame, if reasonable contact and meeting with the property owners can be scheduled. As per your instruction, the property owners will need to be contacted prior to my viewing of the property. Both an exterior and interior inspection of the properties is recommended. The Complete Appraisal assignments will use information on current property taxation, zoning and setback regulation information, property legal descriptions and complete street reconstruction descriptions. Additional will be fees for client or attorney meetings, preparation by the appraiser for commission hearings, future litigation and additional hard copy appraisal report reproduction. The fee for these services will be at a rate of $75 per hour. A fee of $125 per hour will be invoiced for court or commission hearing proceedings. Neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value opinion of the property. Our office is experienced with this type of property valuation. 0 ur firm has been in business since 1 968. W e have ( 8) I icensed and certified appraisers available for appraisal assignments. If you agree to the above terms, please sign below and return by fax, e-mail or regular mail. If you have any additional questions, please do not hesitate to contact me. Sincerely, Report type: Comulete Auuraisal - Summarv Reuort //'/^"--~J /'~-"-~" , ~ , .; . / .,.,... . '. .." ~ "---..., ..1"" ~ v_ '-"'_'__' -.L..",.,~ Richard W. Luebben Certified Residential Vice-President Your Signature: Larry Poppler, P .E. Date: www.nagellappraisals.com 2 .. . _0.__.......__._...._._1._..........._...__._.___.__.._.._._..._.___....-..-....---.-......... STANDARD AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is made on the 7th day of February. 2005, between the City of Prior Lake, Minnesota (hereinafter "City"), whose business address is 16200 Eagle Creek Avenue S.E., Prior Lake, MN 55372-1714, and Naaell Appraisal & Consultina, a Minnesota corporation (hereinafter "Consultant") whose business address is 7515 Wavzata Boulevard. Suite #115. Minneaoolis. MN 55426. PRELIMINARY 5T A TEMENT The City has adopted a policy regarding the selection and hiring of consultants to provide a variety of professional services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this agreement is to set forth the terms and conditions for the provision of professional services for complete special assessment and value benefit market value appraisal professional services by Consultant for preparation of the City's Comprehensive Sanitary Sewer Plan hereinafter referred to as the "Work". The City and Consultant agree as follows: 1. Scope of Work. The Consultant agrees to provide the professional services shown in Exhibit "A" in connection with the Work. 2. Time for Performance of Services. The Consultant shall perform the services described in Exhibit A within the following timeframe unless otherwise agreed upon in writing: 3. Compensation for Services. City agrees to pay the Consultant $6.800.00 for the services as described in Paragraph 1 (and Exhibit A). A. Any changes in the scope of the work which may result in the compensation due the Consultant shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. B. Special Consultants may be utilized by the Consultant when required by the complex or specialized nature of the Project and when authorized in writing by the City. C. City agrees to pay Consultant for extra services by the Consultant or Special Consultants when authorized in writing by the City. 4. The City agrees to provide the Consultant with the complete information concerning the Scope of the Work and to perform the following services: A. Access to the Area. Depending on the nature of the Work, Consultant may from time to time require access to public and private lands or property. As may be necessary the City shall obtain access to and make all provisions for the Consultant to enter upon public and private lands or property as required for the Consultant to perform such services necessary to complete the Work. B. Consideration of the Consultant's Work. The City shall give thorough consideration to all reports, sketches, estimates, drawings, and other documents presented by the Consultant, 1 G:\PROJECTS\2005\11_FishPoint_Fairlawn\Correspondence\NAGELL AGREE FOR PROF SERV.DOC Created on 2/2/2005 3:00 PM ----.-..-......---..-..--.. ....--,............ ..... "---"'1"---"4_-'''~' .. ........ ... ..-....- -_....~._.._.... ............. .......-.-.-........... ... .........._. ..''''.-- and shall inform the Consultant of all decisions required of City within a reasonable time so as not to delay the work of the Consultant. C. Standards. The City shall furnish the Consultant with a copy of any standard of criteria, including but not limited to, design and construction standards they may require in the preparation of the report for the Project. D. Owner's Reoresentative. A person shall be appointed to act as the City's representative with respect to the work to be performed under this Agreement. He or she shall have complete authority to transmit instructions, receive information, interpret, and define the City's policy and decisions with respect to the services provided or materials, equipment, elements and systems pertinent to the work covered by this Agreement. 5. Method of Payment. The Consultant shall submit to the City, on a monthly basis, itemized bills for professional services performed under Section 4 of this Agreement. Bills submitted shall be paid in the same manner as other claims made to the City. A. Proaress Payment. For work reimbursed on an hourly basis, the Consultant shall indicate for each employee, his or her name, job title, the number of hours worked, rate of pay for each employee, a computation of amounts due for each employee, and the total amount due for each project task. Consultant shall verify all statement submitted for payment in compliance with Minnesota Statutes Sections 471.38 and 471.391. For reimbursable expenses, if permitted in Exhibit A, the Consultant shall provide such documentation as reasonably required by the City. B. Abandoned or Susoended Work. If any work performed by the Consultant is abandoned or suspended in whole or in part by the City, the Consultant shall be paid for any services performed on account of it prior to receipt of written notice from the City of such abandonment or suspension, all as shown on Exhibit A attached hereto and incorporated herein by reference. C. Pavments for the Consultant's Reimbursable Costs. The Consultant shall be reimbursed for the work of special consultants, as described in Section 38, and for other items when authorized in writing by the City. Such items shall include: transportation of principals and employees on special trips to the Project or to other locations, materials and supplies, and AutoCAD as required to expedite the work, and reproduction of reports. 7. Project Manager and Staffing. The Consultant has designated Richard W. Luebben. Certified Residential Vice-President to serve on the Project. He or she shall be assisted by other staff members as necessary to facilitate the completion of the Project in accordance with the terms established herein. 8. Standard of Care. All Work performed pursuant to this Agreement shall be in accordance with the standard of care in Scott County, Minnesota for professional services of the like kind.. 9. Audit Disclosure. The Consultant shall allow the City or its duly authorized agents reasonable access to such of the Consultant's books and records as are pertinent to all services provided under this Agreement. Any reports, information, data, etc. given to, or prepared or assembled by, the Consultant under this Agreement which the City requests to be kept confidential shall not be made available to any individual or organization without the City's prior written approval. All finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports prepared by the Consultant shall become the property of the City upon termination of G:\PROJECTS\2005\ 11_FiShPoint_FairlaWn\COrreSPOndenCe\~GELL AGREE FOR PROF SERV .DOC S~~ Created on 2/2/2005 3:00 PM ~ ~--~--~--~---_._-_......_...-".._~..__...- '-I-~"-'--'--""""-"'~" _....__...._._._..__.~~._..~._....---_.__.._.._..~~.....---- this Agreement, but Consultant may retain copies of such documents as records of the services provided. 10. Term. The term of this Agreement shall be from February 7, 2005 through June 1, 2005 the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated. 11. Termination. This Agreement may be terminated by either party by seven (7) days' written notice delivered to the other party at the address written above. Upon termination under this provision if there is no fault of the Consultant, the Consultant shall be paid for services rendered and reimbursable expenses until the effective date of termination. If however, the City terminates the Agreement because of the Consultant has failed to perform in accordance with this Agreement, no further payment shall be made to the Consultant, and the City may retain another contractor to undertake or complete the work identified in Paragraph 1. If as a result, the City incurs total costs for the work (including payments to both the present contractor and a future contractor) which exceed a maximum Agreement amount, if any, specified under Paragraph 3, then the Consultant shall be responsible for the difference between the cost actually incurred and the Agreement amount. 12. Subcontractor. The Consultant shall not enter into subcontracts for services provided under this Agreement except as noted in the Scope of Work, without the express written consent of the City. The Consultant shall pay any subcontractor involved in the performance of this Agreement within the ten (10) days of the Consultant's receipt of payment by the City for undisputed services provided by the subcontractor. If the Consultant fails within that time to pay the subcontractor any undisputed amount for which the Consultant has received payment by the City, the Consultant shall pay interest to the subcontractor on the unpaid amount at the rate of 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Consultant shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. 13. Independent Consultant. At all times and for all purposes herein, the Consultant is an independent contractor and not an employee of the City. No statement herein shall be construed so as to find the Consultant an employee of the City. 14. Non-Discrimination. During the performance of this Agreement, the Consultant shall not discriminate against any employee or applicants for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, or age. The Consultant shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. 15. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 16. Services Not Provided For. No claim for services furnished by the Consultant not specifically provided for herein shall be honored by the City. 3 G:\PROJECTS\2005\11_FishPoint_Fairlawn\Correspondence\NAGELL AGREE FOR PROF SERV.DOC Created on 2/2/2005 3:00 PM 17. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 18. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 19. Compliance with Laws and Regulations. In providing services hereunder, the Consultant shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. The Consultant and City, together with their respective agents and employees, agree to abide by the provisions of the Minnesota Data Practices Act, Minnesota Statutes Section 13, as amended, and Minnesota Rules promulgated pursuant to Chapter 13. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 20. Waiver. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 21. Indemnification. Consultant agrees to defend, indemnify and hold the City, its officers, and employees harmless from any liability, claims, damages, costs, judgments, or expenses, including reasonable attorney's fees, resulting directly or indirectly from a negligent act or omission (including without limitation professional errors or omissions) of the Consultant, its agents, employees, or subcontractors in the performance of the services provided by this Agreement and against all losses by reason of the failure of said Consultant fully to perform, in any respect, all obligations under this Agreement. 22. Insurance. A. General Liabilitv. During the term of this Agreement, Consultant shall maintain a general liability insurance policy with limits of at least $600,000 for each person, and each occurrence, for both personal injury and property damage. This policy shall name the City as an additional insured for the services provided under this Agreement and shall provide that the Consultant's coverage shall be the primary coverage in the event of a loss. The policy shall also insure the indemnification obligation contained in Paragraph No. 21. A certificate of insurance on the City's approved form which verifies the existence of this insurance coverage must be provided to the City before work under this Agreement is begun. B. Worker's Comoensation. The Consultant shall secure and maintain such insurance as will protect Consultant from claims under the Worker's Compensation Acts and from claims for bodily injury, death, or property damage which may arise from the performance of Consultant's services under this Agreement. C. Professional Liabilitv Insurance. The Consultant agrees to provide to the City a certificate evidencing that they have in effect, with an insurance company in good standing and authorized to do business in Minnesota, a professional liability insurance policy. Said policy shall insure payment of damage for legal liability arising out of the performance of G:\PROJECTS\2005\ 11_FiShPoint_FairlaWn\COrreSPOndenCe\~AGELL AGREE FOR PROF SERV .DOC 5~~ Created on 2/2/2005 3:00 PM W ~---_.._----~~----------- ,,---.-.--.- -.. - - -_.._--'^"---------~ ---.,,----~.._---.- -"--<.-.. -.-".-.... ,--_..__.__...._._-~....._-,_.._-_...._._-_._._-_._. professional services for the City, in the insured's capacity as the Consultant, if such legal liability is caused by an error, omission, or negligent act of the insured or any person or organization for whom the insured is legally liable. Said policy shall provide an aggregate limit of $1 ,000,000. 23. Records Access. The Consultant shall provide the City access to any books, documents, papers, and records which are directly pertinent to the specific contract, for the purpose of making audit, examination, excerpts, and transcriptions, for three years after final payments and all other pending matters related to this contract are closed. 24. Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of the Agreement ("Information") shall become the property of the City. The City may use the I nformation for its purposes and the Contractor also may use the Information for its purposes. Reuse of the Information for the purposes of the project contemplated by this Agreement ("Project") does not relieve any liability on the part of the Contractor, but any reuse of the Information by the City or the Contractor beyond the scope of the Project is without liability to the other, and the party reusing the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. 25. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. Executed as of the day and year first written above. Reviewed for form: CITY OF PRIOR LAKE City Engineer Mayor City Manager FIRM NAGELL APPRAISAL & CONSULTING By: Its: 5 G:\PROJECTS\2005\11_FishPoint_Fairlawn\Correspondence\NAGELL AGREE FOR PROF SERV.DOC Created on 2/2/20053:00 PM ""---'---'-"~"""'--_.'-'~"-'" ...-."r...-......... ..-..-..,--.......---.--.............