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HomeMy WebLinkAbout09-248 Resolution No. 09-248 RESOLUTION AUTHORIZING EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH OVINGTON APPRAISAL SERVICE FOR THE CITY'S NEIGHBORHOOD STABILIZATON PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Sean R. Stegall, City Manager, and Diane Robertson, City Clerk, be and are hereby authorized and directed to execute a professional services agreement on behalf of the City of Elgin with Ovington Appraisal Service for appraisal services for the City's Neighborhood Stabilization Program,a copy of which is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: December 2, 2009 Adopted: December 2, 2009 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk PROFESSIONAL SERVICE,,//S AGREEMENT THIS AGREEMENT made and entered into this p7�n---day ofd, 2009,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY") and Ovington Appraisal Service (hereinafter referred to as"Professional Appraiser"). WHEREAS,the CITY desires to engage the Professional Appraiser to furnish certain professional services in relation to appraising and reviewing appraisals relating to for-sale vacant properties and vacant foreclosure properties (hereinafter referred to as the"PROJECT");and, WHEREAS,the Professional Appraiser represents that they are in compliance with Illinois Statutes relating to professional registration of individuals and has the necessary expertise and experience to furnish such services upon the terms and conditions set forth herein below. NOW,THEREFORE, it is hereby agreed by and between the CITY and the Professional Appraiser that the CITY does hereby retain the Professional Appraiser for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged to act for and represent it in all consulting matters involved in the PROJECT, subject to the following terms and conditions and stipulations,to-wit: I.SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the Planning Manager of the CITY, herein after referred to as the"MANAGER." B. A detailed Scope of Services is attached hereto as Attachment A and incorporated herein by this reference. II.PROGRESS REPORTS A. Progress will be recorded on the project schedule and submitted monthly as a component of the Status Report described in Paragraph B below. B. The Professional Appraiser will submit to the MANAGER monthly a Status Report keyed to the Project Schedule. A brief narrative will be provided identifying progress, findings and outstanding issues. III.WORK PRODUCTS All work products prepared by the Professional Appraiser pursuant hereto including,but not limited to,reports, designs, calculations, work drawings, studies,photographs, models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the MANAGER provided,however,that the Professional Appraiser may retain copies of such work products for its records. Such work products are not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project,and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the Professional Appraiser. IV.PAYMENTS TO THE PROFESSIONAL APPRAISER(Lump Sum Method) A. The CITY shall reimburse the Professional Appraiser for services under this Agreement a lump sum of $450 per appraisal, regardless of actual costs incurred by the Professional Appraiser. Modifications to the project shall be authorized in writing by the City. B. The CITY shall make periodic payments to the Professional Appraiser based upon actual progress within 30 days after receipt and approval of invoice. Said periodic payments to the Professional 1 Appraiser shall not exceed the amounts shown in the proposal, and full payments for each task shall not be made until the task is completed and accepted by the MANAGER. V.INVOICES A. The Professional Appraiser shall submit invoices in a format approved by the CITY. Progress reports for the project will be included with all payment requests. B. The Professional Appraiser shall maintain records showing actual time devoted and costs incurred. The Professional Appraiser shall permit the authorized representative of the CITY to inspect and audit all data and records of the Professional Appraiser for work done under this Agreement. The Professional Appraiser shall make these records available at reasonable times during the Agreement period and for a year after termination of this Agreement. VI.TERMINATION OF AGREEMENT Notwithstanding any other provision hereof, the CITY may terminate this Agreement at any time upon fifteen(15)days prior written notice to the Professional Appraiser. In the event that this Agreement is so terminated, the Professional Appraiser shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the task amounts set forth under Article IV above. VII.TERM This Agreement shall become effective as of the date the Professional Appraiser is given a notice to proceed and, unless terminated for cause or pursuant to Article VI, shall be deemed concluded on the date the CITY determines that all of the Professional Appraiser'work under this agreement is completed. A determination of completion shall not constitute a waiver of any rights or claims,which the CITY may have or thereafter acquire with respect to any term or provision of the Agreement. The term of the Agreement is three years, conditioned upon satisfactory performance by the Professional Appraiser and appropriation of fund by the City Council. If no funds are appropriated for a year of the contract, services will not be provided for that year and the remainder of the Agreement shall remain in full force and effect. VIII.NOTICE OF CLAIM If the Professional Appraiser wishes to make a claim for additional compensation as a result of action taken by the CITY, the Professional Appraiser shall give written notice of his claim within 15 days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the Professional Appraiser's fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the Professional Appraiser. Regardless of the decision of the MANAGER relative to a claim submitted by the Professional Appraiser, all work required under this Agreement as determined by the MANAGER shall proceed without interruption. IX.BREACH OF CONTRACT If either party violates or breaches any term of this Agreement, such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party,by reason of any default,fails within fifteen(15)days after notice thereof by the other party to comply with the conditions of the Agreement, the other party may terminate this Agreement. Notwithstanding the foregoing, or anything else to the contrary in this Agreement, with the sole exception of an action to recover the monies the CITY has agreed to pay to the Professional Appraiser pursuant to Article IV hereof,no action shall be commenced by the Professional Appraiser against the CITY for monetary damages. 2 X.INDEMNIFICATION To the fullest extent permitted by law, Professional Appraiser agrees to and shall indemnify, defend and hold harmless the CITY, its officers, employees, agents, boards and commissions from and against any and all claims, suits,judgments, costs, attorney's fees, damages or other relief, including but not limited to workers' compensation claims, in any way resulting from or arising out of negligent actions or omissions of the Professional Appraiser in connection herewith, including negligence or omissions of employees or agents of the Professional Appraiser arising out of the performance of this Agreement. In the event of any action against the CITY,its officers,employees,agents,boards or commissions,covered by the foregoing duty to indemnify, defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. The provisions of this paragraph shall survive any expiration, completion and/or termination of this Agreement. XL NO PERSONAL LIABILITY No official, MANAGER, officer, agent, or employee of the CITY shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. XII.INSURANCE A. Comprehensive Liability. The Professional Appraiser shall provide, pay for and maintain in effect, during the term of this Agreement, a policy of comprehensive general liability insurance with limits of at least $1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The Professional Appraiser shall deliver to the MANAGER a Certification of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty (30)days prior written notice to the MANAGER. The Certificate of Insurance, which shall include Contractual obligation assumed by the Professional Appraiser under Article X entitled"Indemnification", shall be provided. This insurance shall apply as primary insurance with respect to any other insurance or self- insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance,alternatively,if the insurance states that it is excess or prorate,it shall be endorsed to be primary with respect to the CITY. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned, non-owned, and hired motor vehicles with limits of not less than $500,000 per occurrence for damage to property. C. Combined Single Limit Policy.The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of$1,000,000 per occurrence subject to a$1,000,000 aggregate. D. Professional Liability. The Professional Appraiser shall carry Professional Liability Insurance Covering claims resulting from error, omissions, or negligent acts with a combined single limit of not less than $1,000,000 per occurrence. A Certificate of Insurance shall be submitted to the MANAGER as evidence of insurance protection. The policy shall not be modified or terminated without thirty(30)days prior written notice to the MANAGER. 3 XIII.CONSTRUCTION MEANS,METHODS,TECHNIQUES,SEQUENCES,PROCEDURES,AND SAFETY The Professional Appraiser shall not have control over or charge of and shall not be responsible for construction means, methods, techniques, sequences, or procedures, or for safety precautions and programs in connection with the construction,unless specifically identified in the Scope of Services. XIV.NONDISCRIMINATION In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any employee or applicant for employment because of sex, age,race, color, creed, national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to,but not be limited to,the following: employment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory, mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation,termination,or suspension,in whole or in part,of the Agreement by the CITY. XV.ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the CITY. XVI.DELEGATIONS AND SUBCONTRACTORS Any assignment, delegation or subcontracting shall be subject to all the terms, conditions and other provisions of this Agreement and the Professional Appraiser shall remain liable to the CITY with respect to each and every item, condition and other provision hereof to the same extent that the Professional Appraiser would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed subcontractor shall require the CITY's advanced written approval. XVII.NO CO-PARTNERSHIP OR AGENCY This agreement shall not be construed so as to create a partnership,joint venture, employment or other agency relationship between the parties hereto. XVIII.SEVERABILITY The parties intend and agreed that, if any paragraph, sub-paragraph, phrase, clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect. XIX.HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define, limit or describe the scope of intent of any provision of this Agreement, nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof. 4 XX.MODIFICATION OR AMENDMENT This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. XXI.APPLICABLE LAW This Agreement shall be deemed to have been made in, and shall be construed in accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County,Illinois. XXII.NEWS RELEASES The Professional Appraiser may not issue any news releases without prior approval from the MANAGER, nor will the Professional Appraiser make public proposals developed under this Agreement without prior written approval from the MANAGER prior to said documentation becoming matters of public record. XXIII.COOPERATION WITH OTHER ENGINEERS The Professional Appraiser shall cooperate with any other planners in the CITY's employ or any work associated with the PROJECT. XXIV.INTERFERENCE WITH PUBLIC CONTRACTING The Professional Appraiser certifies hereby that it is not barred from bidding on this contract as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute regarding bid rigging. XXV.SEXUAL HARASSMENT As a condition of this contract,the Engineer shall have written sexual harassment policies that include, at a minimum,the following information: A. The illegality of sexual harassment; B. The definition of sexual harassment under state law; C. A description of sexual harassment,utilizing examples; D. The vendor's internal complaint process including penalties; E. The legal recourse, investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; F. Directions on how to contact the department and commission; G. Protection against retaliation as provided by Section 6-101 of the Human Rights Act. A copy of the policies must be provided to the Department of Human Rights upon request 775 ILCS 5/2- 105. 5 XXVI.WRITTEN COMMUNICATIONS All recommendations and other communications by the Professional Appraiser to the MANAGER and to other participants which may affect cost or time of completion shall be made or confirmed in writing. The MANAGER may also require other recommendations and communications by the Professional Appraiser be made or confirmed in writing. XXVII.NOTICES All notices,reports,and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail,postage prepaid,addressed as follows: A. As to CITY: Matthew Fitzgibbon,Planning Manager,City of Elgin 150 Dexter court,Elgin,Illinois 60120 B. As to the Professional Appraiser: Lee Ovington,Ovington Appraisal Services,460 Briargate Road,Suite 200, South Elgin, IL 60177. XXVIII.COMPLIANCE WITH LAWS Notwithstanding any other provision of this Agreement it is expressly agreed and understood that in connection with the performance of this Agreement that the Professional Appraiser shall comply with all applicable Federal, State, City and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, Professional Appraiser hereby certifies, represents and warrants to the CITY that all Professional Appraiser's employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States. Professional Appraiser shall also at its expense secure all permits and licenses, pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this Agreement. The CITY shall have the right to audit any records in the possession or control of the Professional Appraiser to determine Professional Appraiser's compliance with the provisions of this section. In the event the CITY proceeds with such an audit the Professional Appraiser shall make available to the CITY the Professional Appraiser's relevant records at no cost to the CITY. Professional Appraiser shall pay any and all costs associated with any such audit. SIGNATURE PAGE FOLLOWS 6 IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement effective as of the date and year first written above. FOR THE CITY OF ELGIN: FOR OVINGTON APPRAISAL SERVICE: By •04#/ ' By: Mita: City M ger 417 Lee Ovington,Presiden t Attest: By City Clerk 7 . . ATTACHMENT A APPRAISAL SCOPE OF SERVICES The Professional Appraiser shall provide appraisal services for properties indentified for purchase by the City under the federally assisted Neighborhood Stabilization Program (NSP), administered by the U.S. Department of Housing and Urban Development. Appraisals performed under this Agreement shall meet the minimum requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition Polices Act (URA) and its implementing regulations (49 CFR Part 24) for real property acquisition appraisals for federal and federally assisted programs. Scope of Work The appraiser must, at a minimum: 1. Provide an appraisal meeting the definition of an appraisal set forth at 49 CFR 24.2(a)(3) and the following five requirements (see 49 CFR 24.103(a)(2)): • An adequate description of the physical characteristics of the property being appraised (and, in the case of a partial acquisition, an adequate description of the remaining property), including items identified as personal property, a statement of the known and observed encumbrances, if any, title information, location, zoning, present use, an analysis of highest and best use, and at least a 5-year sales history of the property. • Include all relevant and reliable approaches to value. If the appraiser uses more than one approach, there shall be an analysis and reconciliation of approaches to value used that is sufficient to support the appraiser's opinion of value. • A description of comparable sales, including a description of all relevant physical, legal, and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction. • A statement of the value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining real property, where appropriate. • The effective date of valuation, date of appraisal, signature, and certification of the appraiser. 2. Afford the property owner or the owner's designated representative the opportunity to accompany the appraiser on the inspection of the property. 3. Perform an inspection of the subject property. The inspection should be appropriate for the appraisal problem, and should address the following: • The extent of the inspection and description of the neighborhood and proposed project area; 1 . . • The extent of the subject property inspection, including interior and exterior areas; and, • The level of detail of the description of the physical characteristics of the property being appraised (and, in the case of a partial acquisition, the remaining property). 4. Provide an appraisal report, to include an adequate description of the physical characteristics of the property being appraised (i.e., a sketch of the property and the location and dimensions of any improvements) and a description of comparable sales. The appraisal report should also include adequate photographs of the subject property and comparable sales, and provide location maps of the property and comparable sales. 5. In the appraisal report, include items required by the acquiring agency, including but not limited to the following: • Property right(s) to be acquired, e.g., fee simple, easement, etc.; • Value being appraised (usually fair market value), and its definition; • Appraised as if free and clear of contamination (or as specified); • Description of the physical characteristics of the property being appraised (and, in the case of a partial acquisition, the remaining property); • Items identified as personal property; • Date of appraisal report and date of valuation; • A realty/personalty report as required by 49 CFR 24.103(a)(2)(i); • Known and observed encumbrances, if any; • Title information; • Location and zoning; • Present use and a five-year(5-year) sales history of the property. 6. Identify in the appraisal report the highest and best use of the property. If the highest and best use is in question or is different from the existing use, provide an appropriate analysis identifying the market-based highest and best use. 7. Appraisals shall utilize the most appropriate single method or combination of methods to determine the value of the property and/or the highest and best use of the site, said methods being the Cost, Income and/or Sales approach. 8. Present and analyze relevant market information. Market information should include in the appraisal and should include research, analysis and verification of comparable sales. Inspection of the comparable sales should also be completed. 9. In developing and reporting the appraisal, the appraiser shall disregard any decrease or increase in the fair market value of the property caused by the project for which the property is to be acquired or by the likelihood that the property would be acquired for the project. (If necessary, the appraiser may cite the Jurisdictional Exception or Supplemental Standards Rules under USPAP to ensure compliance with USPAP while following this and other Uniform Act requirements). 10. Report his or her analysis, opinions and conclusions in the appraisal report. 2 Additional Requirements 1. Intended Use. The appraisal is to estimate the fair market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified (e.g., fee simple, etc.) for a federally-assisted project. 2. Intended User. The intended user of the appraisal report is primarily the City of Elgin, but the City's funding partners may review the appraisal as part of their program oversight activities. 3. Definition of Fair Market Value. This is determined by State law. Fair market value, however, is generally defined as the price that a seller is willing to accept and a buyer is willing to pay on the open market in an arm's length transaction, and usually includes the following: • Buyer and seller are typically motivated; • Both parties are well-informed or well-advised, each acting in what he or she considers his or her own best interest; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and, • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4. Certification. The appraisal should include a certification of the appraiser in a form approved by the City for each property appraised. 5. Assumptions and Limiting Conditions. The appraiser shall state all relevant assumptions and limiting conditions. In addition, the City may provide other assumptions and conditions that may be required for the particular appraisal assignment, such as: • The data search requirements and parameters that may be required for the project; • Identification of the technology requirements, including approaches to value, to be used to analyze the data; • The need for machinery and equipment appraisals, soil studies, potential zoning changes, etc. • Instructions to the appraiser to appraise the property "As Is" or subject to repairs or corrective action; • As applicable, include any information on property contamination to be provided and considered by the appraiser in making the appraisal. 3 • ''\:-.-- ,,,\',� —Cityof Elgin Agenda Item No. 44' ion , isk���qq t[D NR ll '..�> November 12, 2009 I i TO: Mayor and Members of the City Council q7r Ithorlc ict l uafity FROM: Sean R. Stegall, City Manager Apo Q, , Matthew Fitzgibbon, Planning anager SUBJECT: Appraisal Services for the City of Elgin's Neighborhood Stabilization Program PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider agreements for appraisal services for the City of Elgin's Neighborhood Stabilization Program. RECOMMENDATION It is recommended that the Ci Council approve the agreements with tKrueger npr sas r Services, Inc. an<Ovington Appraisal Service for appraisal services for the City of Elgin's Neighborhood Stabilization Program at a cost of$450 per appraisal and not to exceed$10,800. BACKGROUND The City is in the process of purchasing vacant, foreclosed homes as part of its Neighborhood Stabilzation Program (NSP), which is funded by the U.S. Department of Housing and Urban Development (HUD). One of the federal requirements is to have each home appraised prior to purchase, and each home purchased in NSP is required to be purchased at a price not less than 1%of the appraised value. The City issued a request for proposals (RFP) to solicit qualified appraisers to hire for this program. The City of Elgin received four proposals. It is recommended that the City hire Krueger Appraisal Services, Inc. and Ovington Appraisal Services. These two firms have demonstrated their capacity to handle the scope of work identified in the RFP and their ability to deliver the appraisals within 30 days of the assignment. It is the City's intention to alternate the appraisal assignments between the two firms as workload needs arise. To acquire approximately 12 homes in the first round of NSP, the City can anticipate needing between 12 to 24 appraisals over the next two years. At a cost of$450 per appraisal, the total costs are estimated to range between $5,400 and $10,800. Appraisal services are an eligible acquisition cost within federal NSP regulations. r Appraisal Services for the City of Elgin's Neighborhood Stabilization Program November 12, 2009AI Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None (6kk FINANCIAL IMPACT There are sufficient funds budgeted ($1,847,700) and available ($1,847,700) in the proposed 2010 Community Development Block Grant Fund budget, account number 230-0000-791.78-02 to enter into contracts with Krueger Appraisal Services, Inc. and Ovington Appraisal Services in a not to exceed amount of$10,800. oxitL GAL IMPACT None ALTERNATIVES 1. The City Council may choose to approve the agreements with Krueger Appraisal Services,Inc. and Ovington Appraisal Services. 2. The City Council may choose not to approve the agreements with Krueger Appraisal Services, Inc. and Ovington Appraisal Services. Respectfully submitted for Council consideration. MF Attachments 1 Memorandum City of Elgin 2 ' n oz, • k�iTCD X01, Date: December 9, 2009 To: Matt Fitzgibbon, Community Development From: Jennifer Quinton, Deputy City Clerk Subject: Resolution Nos. 09-247 and 09-248, Adopted at the December 2, 2009, Council Meeting Enclosed you will find the agreement listed below. Please retain a copy for your records. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you. • Professional Services Agreement with Krueger Appraisal Services, Inc. for the City's Neighborhood Stabilization Program • Professional Services Agreement with Ovington Appraisal Service for the City's Neighborhood Stabilization Program