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HomeMy WebLinkAboutExpenditure - Appraisals - R.F. Sweet & AssociatesPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE AN EXPENDITURE FOR THE PREPARATION OF APPRAISALS FOR THE NINE HOUSING AUTHORITY APARTMENT PROPERTIES AND THE JEAN BENSON CHILD CARE CENTER SUBMITTED BY CONSULTANT: DATE: CONTENTS Recommendation: TERESA LAROCCA, DIRECTOR OF HOUSING R. F. SWEET & ASSOCIATES 73-241 HIGHWAY 111 PALM DESERT, CA 92260 J U LY 8, 2004 R. F. SWEET AND ASSOCIATES CONTRACT By Minute Motion, that the Agency Board approve an expenditure in the amount of $19,500 for the preparation of eleven short -form appraisals by R. F. Sweet and Associates, plus a contingency in the amount of $1,950. Funds are available in Account No. 870-4195-466-3090. Executive Summan f: Approval of this request will assist the Risk Manager in assigning values to Agency - owned properties utilizing current appraisals prepared by an ASA appraiser, R.F. Sweet and Associates, ensuring coverage in the event of a loss. Denial of this request may result in under- or over -valuation of the properties within the City's insurance umbrella. Discussion: The City's Risk Manager, Gary Rosenblum, has requested current information regarding replacement value of each of the Agency's Housing properties and the Jean Benson Child Care Center in order to include those properties under the City's insurance umbrella. In order to determine replacement value, it will be necessary to hire an appraisal firm to analyze data and prepare an appraisal establishing replacement value of each of the noted eleven properties. Staff Report Approval of Expenditure for Housing Authority Property Appraisals July 8, 2004 Page 2 of 2 R. F. Sweet and Associates has prepared appraisals of various Housing Authority properties over the past eight years and, hence, is familiar with the majority of the properties thereby allowing them a reasonable advantage and the ability to prepare the appraisals in a timely manner and at a favorable cost to the Agency. Submitted by: r I La Rocca, Director of Housing g mh Approval: Carlos L. Ortega, E)Kcutive Director Approval: opment Paul S. Gibson, Director of Finance G'.\RDA\Maria Hunt\WPDATA\LAROCCA\STFRPTS\062404haappraisals.doc R.F. SWEET & ASSOCIATES Real Estate Appraisers Commercial - Industrial - Residential - Agricultural - Eminent Domain - Business Appraisals Serving the Coachella Valley Since 1970 6/22/04 Ms. Terre La Rocca CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert CA 92260 Via Fax (760) 341-6372 Dear Ms. La Rocca: This letter is an update to the proposal that quoted time and fee for the appraisals of the ten (10) multi -family/ child care properties in your email dated 3/31/04. (1) We added an 11"' parcel (Santa Rosa Apartments), have already reviewed the documents you were able to provide, and have made inspections of all the parcels. While we quoted a range of prices previously, we are now able to quote final fees based on the projects that required additional filed work and measuring and those that did not. (2) Additionally, of the two report formats we set forth preciously, you have indicated you prefer the summary type report with more detail than the restricted use reports. Scope of the Assignment The appraisal will be made to provide an estimate of current Replacement Cost, New of the onsite physical improvements only as of the current date of value. The scope and extent of the appraisal update assignment will be categorized by the Uniform Standards of Professional Appraisal Practice (USPAP) as the following: Appraisal scope and extent........ Limited (Sales and Income not applicable) Written Report..........................Summary The appraisal will conform to the USPAP requirements and the Code of Ethics of the American Society of Appraisers (ASA). For written reports, an original and two (2) copies with original exhibits and signatures will be provided. Additional copies may be provided for a nominal copying charge. Use of the Appraisal Report The appraisal report, whether written or oral, is intended for the use of the client in providing PL/PD insurance on the respective property improvements. 73-241 Highway 111 Suite 3D Palm Desert, CA 92260 (760) 346-9401 Telephone (760) 340-9430 Fax • City of Palm Desert — Terra La Rocca 3/23/04 P.2 Delivery Time and Required Documents We have just received the final information from James Conway on One Quail Place and he advises all information available has been delivered to your offices. The time required for completion and delivery of the written report is about 10 days from the date of this letter. Information requested in our prior proposal has finally been received. The Appraisal Fee We have received and reviewed the documents you have been able to produce; some of the projects will require less time than others due to our being able to work off "as built" plans that have accurate measurements. The parcels with the larger fees are those which required extensive site work, measuring and plan preparation to extract cost quantity data. The fee, based on hours to be worked at $150 per hour, is set forth following; the fee is due and payable upon receipt, or as noted. Property Summary Narrative Keyed to your email If Site & Bldg. Plans If partial or not available with available where dimensions and extensive field work takeoffs required 1- Jean Benson 1,500 -- Child Care 2 — Desert -- 2,000 Pointe 1 3 — Catalina -- 1,800 Garden Apts 4 — Taos Palms -- 1,500 5 — Pueblos Apts 1,200 -- 6 — Las Serenas -- 2,000 7 — One Quail -- 3,000 Place 8 — Neighbors 1,500 -- 9 — Laguna 1,500 -- Palms 10 — CA Villas 2,000 -- 11- Santa Rosa -- 1,500 Apts. Total 7,700 11,800 Grand Total $19,500 Additional Work Any additional work (including travel time) not included within the scope of this original assignment, but which is subsequently requested and authorized by the client in connection with this appraisal or the property, may be provided at the rate of $150 per hour (including the verbal City of Palm Desert — Terra La Rocca 3/23/04 P.3 or written response and rebuttal to any review of the appraisal report by the client, the client's agent or assignee or other review appraiser), except for the following billed at $300 per hour, deposition testimony expert witness court preparation, consultation, standby or testimony In the event the appraiser is subpoenaed or otherwise required to give expert testimony, or attend any public or private consultation, agency meeting or hearing as a result of having prepared the appraisal, the fee is also billed at $300 per hour; travel expenses, if any, will be billed in addition to time. Cancellation Fee In the event the assignment is canceled prior to completion, the client will be sent a bill for all hours worked to date, including direct or indirect costs, and a refund of the retainer, if any, will be mailed. If the assignment is canceled within the 2 weeks prior to the scheduled delivery date, the full retainer will be reserved to cover loss of other appraisal work declined in favor of the subject assignment. Privacy Notice In keeping with federal law, any non-public information we collect from you during the course of this appraisal assignment (provided either directly by you or received by others with your authorization) will not be disclosed to anyone by anyone on our staff, except as necessary or required by law (court orders or as part of litigation in which you are a party). To protect our file data which contains this information, we maintain physical, electronic and procedural safeguards. Appraiser Liability Consistent with current State and Federal appraisal standards and requirements, and to avoid error in judgments, decision, assumptions and the like, regarding the subject property to be appraised, the property value will only be valid as of the effective date of value, and only for the client name in the appraisal report, and only for the use stated in the appraisal. The appraiser can not be held responsible for any unknown or unintended use by either the client or unknown user; by such other use the client or unknown user agrees that such use is made at user's own risk. The undersigned acknowledges and agrees that the extent of the R.F. Sweet & Associates company and individual appraiser(s)' liability in the event of any dispute arising out of this agreement and/or the services rendered pursuant to this agreement shall not exceed the fees paid to the company/appraiser. Any controversy or dispute arising out of or relating to this agreement and the services rendered shall be submitted to final and binding arbitration as the sole and exclusive remedy for any such controversy or dispute. Any request for arbitration shall be submitted within six (6) months following the alleged breach, otherwise the rights to any remedy shall be forever waived. Each party will select one arbitrator and the two will select a third; failing selection of a third the arbitrator shall be selected from a neutral panel of arbitrators. Each party shall bear its own cost of arbitration, including attorney or other fees, except the cost of the arbitrator shall be ` City of Palm Desert — Terra La Rocca 3/23/04 P.4 borne equally by parties. Said arbitrator shall have no authority to amend or modify the terms of this agreement. Arbitration shall be held in Riverside County, CA. This proposal is contingent upon the attached Certification and Statement of Limiting Conditions, and upon the client having read, understood and accepted all of the terms and conditions herein. We appreciate the opportunity to quote on this work and trust we maybe of service to you. Respectfully, Rose Sweet, ASA Accredited Senior Appraiser (Urban Real Property) American Society of Appraisers State of CA Certified General No. AG005450 PLEASE COMPLETE THE FOLLOWING, SIGN, DATE AND RETURN TO AUTHORIZE APPRAISAL ASSIGNMENT. Name o ,, .,,., ;�'< • :r '..` ::f. . ^r .:"`�:r¥Gay,; _�y�._.. °..ti„f. -„��x. :"b"_ '.>�fs,%�>= A•a4,_".,. ., so� ,$�,�, ;a-.l.gv�a •t-?*.• - •',S%k;`:':'B'.,eiaY .ai'".`v`°.`3"y,•. �. , .. t.. .. i• :'X:14. s - .'.. .. `..:. ".',. _... o.': v,:.. ..^�,.. '::•bwx>.i�y,=;,` n .n.. .. Other Intended Users of the Appraisal .lZeport, if known (required to be disclosed for all appraisal clients by USP�4P) I have read, understood and accepted ah`of the terms an- d'condit ons herein and authorize \the appraisal assignment: m.� . . daten signature' , Please sign and return full copy ^of this'' roposal with retainer and"all requested applicable documents. Thank you