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HomeMy WebLinkAboutRDA 2 T. LIBRARY EXPAN 01-20-04AGENDA REPORT Agenda Item RDA 2 Reviewed: City Manager Finance Director MEETING DATE: JANUARY 20, 2004 TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF APPROVAL OF CONSULTING SERVICES AGREEMENT FOR RELOCATION COORDINATION AND PROPERTY MANAGEMENT SERVICES FOR THE TUSTIN LIBRARY EXPANSION PROJECT SUMMARY Agency approval is requested for a Consulting Services Agreement with Overland Pacific & Cutler, Inc. for relocation coordination and property management services for the properties located at 280-284 E. Third Street, 320-324 S. Preble Drive, 330-324 S. Preble Drive (the "Emery Properties"), and 285 E. Main Street (the "De Nicola Property), being acquired by the City for to the Library Expansion Project. RECOMMENDATION Staff recommends the Redevelopment Agency take the following actions: Authorize the City Manager to execute an Agreement with Overland Pacific & Cutler, Inc. for property management and relocation services, subject to review and approval of the Agreement by the City Attorney. Appropriate $42,300.00 from the unappropriated Town Center Redevelopment Project Area fund balance for expenses associated with the consultant property management services and commercial relocation consulting services. Appropriate $872,700.00 ($798,710.00 for housing relocation payments and $73,990.00 for housing related relocation consulting services) from the Town Center Low and Moderate Income Housing Set-Aside Funds, subject to legal confirmation as to whether such expense is an eligibile use of such funds, or alternatively an amount of $610,700 from the unappropriated Town Center Project Area fund balance and $241,000 from the Town Center Debt Service Fund. William A. Huston Turin Libmry Expansion Project - Relocation Coo~ination January 20,2004 Page 2 FISCAL IMPACT The anticipated fiscal impacts for the proposed consultant services agreement are in an estimated amount of $798,710.00 for relocation payments to all residential tenants on the Emery properties and an amount of approximately $102,550.00 for consultant relocation coordination services, and an amount of approximately $13,740.00 for consultant property management services. The City will be negotiating extensions of occupancies with the existing tenants on the commercial office property at their current rental rates. It is expected that many of these tenant occupants would, as a result continue to pay rent until approximately 90 days prior to any award of bid on construction of the Library Project. The continuing tenant rental payments are expected to cover property management expenses. BACKGROUND/DISCUSSION In August, 2003, the Agency approved a Replacement Housing Plan (Resolution RDA 03-12) and in September, 2003, the Agency adopted a Replacement Housing Plan (Resolution RDA 03-15) in accordance with California Redevelopment Law supporting the acquisition of Emery Properties and the De Nicola Property for the Tustin Library Project. The City obtained possession of the Emery properties on December 17, 2003 and the De Nicola Properties on December 18, 2003. As you are aware, a Third Cycle funding application for the Tustin Library Project was submitted to the State on January 16 under the State Library Bond Act. Under a previous Consultant Services Agreement with Overland Pacific & Cutler for the preparation of the Relocation Plan, the Consultant initiated preliminary investigations of suitable relocation properties to serve the residents and tenants at the Properties, and prepared preliminary individual relocation benefit calculations and an overall project budget. At this time, the City will be negotiating extensions of occupancies on the De Nicola Property and on one of the Emery properties at 230-234 S. Preble. While individual tenants in these buildings may move, it is the City's desire to continue the occupancy of tenants on these properties until the City is further along in the construction and funding process for the Tustin Library Project. Tenants would in any event, however, be provided with at least 90 days notice prior to any written request the City issues for them to move. Continuing rental payments are expected to cover property management expenses. An estimate and appropriation request for actual relocation payment for the commercial tenants on the De Nicola property will be brought forward to the Agency in William A. Huston Tustin Library Expansion Project - Relocation Coordination January 20, 2004 Page 3 the future. Since the City is not a residential care operator, the 90-Day notices issued to Tustin Hacienda residential care tenants would allow for the orderly and timely relocation of the residential care tenants to begin. FINDING OF BENEFIT The Properties are located in the Town Center Project Area. In March, 2000, the Tustin Community Redevelopment Agency adopted a Second Five-Year Implementation Plan for the Town Center and the South/Central Redevelopment Projects for fiscal years 2000-2001 to 2004-2005. The Implementation Plan was composed of two parts: a five- year plan for Redevelopment activities; and a five-year plan for housing activities. Anticipated accomplishments and expenditures for the five-year period included property acquisitions, design studies and State funding assistance applications to support and facilitate the redevelopment and expansion of the Tustin library. The Tustin Library Project is consistent with the Implementation Plan for the Town Center Redevelopment Project Area. It would remove the existing library facility in the Project Area, which is nearing the end of its useful life and which is characterized by a number of deterioration problems, over-utilization and insufficient parking, and assemble aging disparate ownership apartment buildings and two commercial properties to provide for the much needed expanded library. The proposed project will substantially expand the Tustin Branch Library and its services, provide educational and recreational improvements, and stimulate economic development in the area. The proposed project would construct a new, single story facility on the present site expanded by the acquisition of the additional properties. Approval of the proposed Consulting Services Agreement and appropriation of funds requested herein will allow the expeditious relocation of the senior residential care tenants, as well as those tenants who choose not to continue to occupy their units. Staff will be available at the Agency meeting to answer any questions the Agency may have. William A. Huston Tustin Library Expansion Project - Relocation Coordination January 20, 2004 Page 4 Christine Shingleton (/~/ Assistant City ManageF Attachment CONSULTANT SERVICES AGREEMENT This Agreement for Consultant Services (herein "Agreement"), is made and entered into by and between the TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic, ("Agency"), and OVERLAND PACIFIC & CUTLER, INC. ("Consultant"). WHEREAS, Consultant is qualified to provide the necessary services and has agreed to provide such services; and WHEREAS, Consultant has submitted to Agency a proposal for Relocation Coordination Services, dated December 22, 2003 and addendum for Property Management Services dated January 13, 2004, copies of which are attached hereto as Exhibit "A" and Exhibit "B" respectively, and are by this reference incorporated herein as though set forth in full hereat (the "Proposal"). NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, Agency agrees to employ and does hereby employ Consultant and Consultant agrees to provide consulting services as follows: 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the proposal for coordinating relocation services for a proposed library expansion project and property management of the acquired properties, "services" or the "work" as described in the Consultant's proposal, attached hereto and incorporated herein as "Exhibit A" and "Exhibit B." Consultant warrants that all services shall be performed in a competent, professional and satisfactory manner in accordance with all standards prevalent in the industry. In the event of any inconsistency between the terms contained in Exhibit "A" and Exhibit "B" and the terms set forth in the main body of this Agreement, the terms set forth in the main body of this Agreement and Exhibits "C", "D", and "E" shall govern. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all laws, ordinances, resolutions, statutes, roles, and regulations of the City of Tustin and Tustin Community Redevelopment Agency and of any federal, state or local governmental agency of competent jurisdiction. 1.3 Licenses and Permits. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Contract, Consultant warrants that Consultant (a) has thoroughly investigated and considered the work to be performed, (b) has investigated the site of the work and become fully acquainted with the conditions there existing, (c) has carefully considered how the work should be performed, and (d) fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should the Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the Agency, Consultant shall immediately inform Agency of such fact and shall not proceed with any work except at Consultant's risk until written instructions are received from the Contract Officer. 1.5 Care of Work. Consultant shall adopt and follow reasonable procedures and methods during the tCtll! of the Agreement to prevent loss or damage to materials, papers or other components of the work, and shall be responsible for all such damage until acceptance of the work by Agency, except such loss or damages as may be caused by Agency's own negligence. 1.6 Additional Services. Consultant shall perform services in addition to those specified in the Proposal when directed to do so in writing by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any additional compensation not exceeding ten percent (10%) of the original Contract sum must be approved in writing by the Contract Officer. Any greater increase must be approved in writing by the Executive Director. 1.7 Special Requirements. Any additional terms and conditions of this Agreement are set forth in Exhibits "C", "D", and "E" and are incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "C", "D", and "E" and any other provision or provisions of this Agreement including Exhibit A and Exhibit B, the provisions of Exhibits "C", "D", and "E" shall govern. 2. COMPENSATION 2.1 Compensation of Consultant. For the services rendered pursuant to this Agreement, the Consultant shall be compensated and reimbursed as follows: 2.1.1 for relocation coordination services pursuant to "Exhibit A", an amount not to exceed One Hundred Two Thousand Five Hundred Fifty Dollars ($102,550.00); and 2.1.2 for property management services pursuant to "Exhibit B", an amount not to exceed Thirteen Thousand Seven Hundred Forty Dollars ($13,740.00). 2.2 Method of Payment. In any month in which Consultant wishes to receive payment, Consultant shall no later than the first working day of such month, submit to Agency in the form approved by Agency's Director of Finance, an invoice for services rendered prior to the date of the invoice. Agency shall pay Consultant for all expenses stated thereon which are approved by Agency consistent with this Agreement, no later than the last working day of said month. 2.3 Changes. In the event any change or changes in the work is requested by Agency, the parties hereto shall execute an addendum to this Agreement, setting forth with particularity all terms of such addendum, including, but not limited to, any additional Consultant's fees. Addenda may be entered into: A. To provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product or work; B. To provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Consultant's profession. 2.4 Payment for Changes. Changes approved pursuant to an Addendum shall be compensated at the rates prescribed by the tasks identified in Exhibit "A" hereto. 3. PERFORMANCE SCHEDULE 3.1 Agreement. Time of Essence. Time is of the essence in the performance of this 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed within any time periods prescribed in any Schedule of Performance attached hereto marked Exhibit "E". The extension of any time period specified in the Exhibit "D" must be approved in writing by the Contract Officer. The Contract Officer shall not unreasonably withhold consent for an extension of time which is necessitated solely by the action(s) or inaction(s) of the Agency on its officers or employees. 3.3 Force Maieure. The time for performance of services to be rendered pursuant to this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather if the Consultant shall within ten (10) days of the commencement of such condition notify the Contract Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend the time for performing the services for the period of the enforced delay when and if in the Contract Officer's judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Section 7.7 of this Agreement, this Agreement shall continue in full force and effect until satisfactory completion of the services but not exceeding one (1) year from the date hereof, unless extended by mutual written agreement of the parties. 4. COORDINATION OF WORK 4.1 Representative of Consultant. The following Principal of the Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Mark La Bonte, Vice President Overland Pacific & Cutler INC. 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principal is a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing Principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing Principal may not be changed by Consultant without the express written approval of Agency. 4.2 Contract Officer. The Contract Officer shall be the Assistant City Manager of City unless otherwise designated in writing by the Executive Director of Agency. It shall be the Consultant's responsibility to keep the Contract Officer fully informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the Agency to enter into this Agreement. Therefore, Consultant shall not contract with any other entity, except as identified in the Exhibit 'A", to perform in whole or in part the services required hereunder without the express written approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. The Agency shall not unreasonably withhold consent for an assignment to a business entity which succeeds to the entire assets and operation of the Consultant's business. Reasonable grounds for withholding such consent shall include, but shall not be limited to, a delay in performance caused by or related to the assignment and/or a proposed change in the Principal designated in Section 4.1 of this Agreement. 4.4 Independent Consultant. Neither the Agency nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent consultant of Agency and shall remain at all times as to Agency a wholly independent consultant with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 5. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's performance under this Agreement. Consultant shall also carry workers' compensation insurance in accordance with Califomia worker's compensation laws. Such insurance shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to Agency of any proposed cancellation. The Agency's certificate evidencing the foregoing and designating Agency and the City of Tustin (City) as additional named insureds shall be delivered to and approved by the Agency and City prior to commencement of the services hereunder. The procuring of such insurance and the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify the Agency, its consultants, officers, and employees. The amount of insurance required hereunder shall include comprehensive general liability, personal injury and automobile liability with limits of at least One Million Dollars ($1,000,000) combined single limit per occurrence. Coverage shall be provided by admitted insurers with an A.M. Best's Key Rating of at least AVII. 5.2 Indemnification. The Consultant shall defend, indemnify and hold harmless the Agency, City, its officers and employees, from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person or persons, for damage to property, including property owned by Agency, City, and for errors and omissions committed by Consultant, its officers, employees and agents, arising out of or related to Consultant's negligent performance under this Agreement, except for such loss as may be caused by Agency or City's own negligence or that of its officers or employees. 6. RECORDS AND REPORTS 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 6.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of this Agreement shall be the property of Agency and shall be delivered to Agency upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights or ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. 6.4 Release of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7. ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations hereunder so long as the injuring party cures any default within ninety (90) days after service of the notice, or if the cure of the default is commenced within thirty (30) days after service of said notice and is cured within a reasonable time after commencement; provided that if the default is an immediate danger to the health, safety and general welfare, the City may take immediate action under Section 7.6 of this Agreement. Compliance with the provisions of this Section shall be a condition precedent to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured. 7.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of Agency shall be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.5 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment or any other remedy consistent with the purposes of this Agreement. 7.6 Termination Prior to Expiration of Term. The Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant, except that where termination is due to the fault of the Consultant and constitutes an immediate danger to health, safety and general welfare, the period of notice shall be such shorter time as may be appropriate. Upon receipt of the notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter. 7.7 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, Agency may take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated, provided that the Agency shall use reasonable efforts to mitigate damages, and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed to City. 7.8 Attorneys Fees. If either party commences an action against the other party arising out of or in connection with this Agreement or it subject matter, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8. AGENCY AND CITY OFFICERS AND EMPLOYEES; NON- DISCRIMINATION 8.1 Non-Liability of City Officers and Employees. No officer or employee of Agency or City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the Agency or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination or segregation in the performance of or in connection with this Agreement regarding any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry. Consultant shall take affirmative action to insure that applicants and employees are treated without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9. MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: TUSTIN COMMUNITY REDEVELOPMENT AGENCY 300 Centennial Way Tustin, CA 92780 Attention: Assistant City Manager (Contract Officer) To Consultant: Mark La Bonte, Vice President Overland Pacific & Cutler, INC. 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and cannot be mended or modified except by written agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the parties hereunder. 9.5 Corporate Authori _ty. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated: "City" TUSTIN COMMUNITY REDEVELOPMENT AGENCY By: William A. Huston Executive Director APPROVED AS TO FORM: Lois Jeffrey City Attorney "Consultant" By:. Mark La Bonte Vice President 10 EXHIBIT "A" PROPOSAL and SCOPE OF SERVICES RELOCATION COORDINATION SERVICES Attached hereto is: 1) Consultant's Proposal for Relocation Coordination Services dated December 22, 2003. 10 December 22, 2003 24422 Avenida de ia Carlota, Suite 275 Laguna Hills, CA 92653 949.951.5263 ph 949.951.6651 fax www. OPCservices.com Mr. James Draughon Sr. Project Manager City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Proposal To Provide Relocation Consulting Services for Library Expansion Project Dear Mr. Draughon: Overland, Pacific & Cutler, Inc. (OPC) is pleased to submit its proposal to provide Relocation Consulting Services to occupants who will be displaced as a result of a proposed Library Expansion project in the City of Tustin. The proposed project is impacting 3 households, 20 board & care residents and 9businesses in Tustin as shown below: Address Use Occupant 330 Preble Dr. Residential Triplex Tenant 332 Preble Dr. Residential Triplex Tenant 334 Preble Dr. Residential Triplex Tenant 240 East Third St. Board & Care Facility 20 residents 285 East Main St. #1 Price Tribe Investments Business 285 East Main St. #2-5 California Weekly Explorer Business 285 East Main St. #6-7 JRV Engineering, Inc. Business 285 East Main St. #8 William JM Monsanto, P.A. Business 285 East Main St. #9 Network Support Group Business 285 East Main St. #10 The Roof Group Business 285 East Main St. #11 Chris Kiperman Bail Bonds Business 285 East Main St. #12 Seiko Pool Co. Business 285 East Main St. #13 ASERVCO Business Services requested are to provide necessary relocation assistance services in compliance with State relocation guidelines. Also, Project Management/Consulting services will be necessary. December 22, 2003 Relocation Consulting Service Proposal City of Tustin Page 2 The following is our proposed fee to complete the requested and additional services, as requested: Relocation Assistance Services For activities associated with the relocation of the 23 residential households and 9 business occupants in compliance with State law and the attached Scope of Services, we propose a per case rate of: Residential $55,200.00 (23 cases @ $2,400 per case) Businesses $25,650.00 (9 cases ~ $2,850 per case) Total $80,850.00 For activities associated with the attached Scope of Services, OPC may submit monthly invoices for the relocation services rendered based on the hourly rate schedule provided below. However, in no event will OPC's total hourly billing exceed the total per case rate without prior authorization from the Client. Additional cases identified during the implementation of the Project, delays or long-term negotiations in the acquisition which take the relocation process past six months, and/or substantial changes in the required scope of work are items which may result in the revision of the proposed fee. Upon completion of services, the remaining balance of the project maximum shall become immediately due and payable. Project Management/Consulting For Project Management services to coordinate with Agency staff/consultant to discuss the progress of individual relocations, project schedule, provide status reports, represent the Agency in meetings with citizen groups, Project Area Committee's, and/or the Agency Council, and general consulting relative to the relocation program, we propose an hourly not to exceed fee of: Nine Thousand Seven Hundred Dollars ($9,700.00) Last Resort Housing Payments Administration OPC will provide processing of all Last Resort Housing benefits distribution on a quarterly basis within the established project budget amount of $775,000. We will set up a bank account and provide monthly account reconciliation, monthly or quarterly accounting reports as requested and coordination with Agency staff/consultant pertaining to the trust account for a fixed fee of: Twelve Thousand Dollars ($12,000.00) December 22, 2003 Relocation Consulting Service Proposal CiO~ of Tustin Page 3 Based on the above, our budget for the proposed project is: Relocation Assistance Services Project Management/Consulting Last Resort Housing Payments Administration Total Proposed Fee $80,850.00 $9,700.00 $12,000.00 $102,550.00 The current hourly rate schedule for the project through June 30, 2004 is as follows: Principal Senior Project Manager Project Manager Senior Acquisition/Relocation Consultant Acquisition/Relocation Consultant/Analyst R. E. Technician/Escrow Officer/Project Support Secretarial/Clerical $125.00 $110.00 $100.00 $90.00 $80.00 $60.00 $40.00 Any consulting services or advice necessary for an appeal, or to support litigation, such as depositions, pre- trial research and, court testimony, is not part of the estimated fee and shall be billed hourly at 150% of the above rates. We appreciate the opportunity to submit this proposal to provide the requested services. If you have any questions or require additional information, please do not hesitate to contact me at (949)951-5263. Respectfully submitted, OVERLAND, PACIFIC & CUTLER, INC. Vice President Attachment Attachment Scope of Services Overland, Pacific & Cutler, Inc. will conduct the following activities necessary for the effective relocation of residential occupants: Conduct personal, on-site interviews of prospective displacees to ascertain relocation housing needs and special requirements. Inform displaced persons of available relocation assistance services and benefits, and explain relocation process. Provide displacees with on-going advisory assistance to minimize their hardship, including referrals to and coordination with community service resources, public housing and other public services, as necessary. Prepare and distribute Informational Statements, Notices of Displacement, 90-Day Notices to Vacate, and other notices, as may be required. Provide written referrals to replacement housing and physically assist displacees in locating replacement housing, including transporting individuals to view replacement sites, if necessary. Prepare replacement housing/down payment assistance entitlement reports for displaced households. Determine eligibility for and proposed amount of relocation benefits, including moving payments, rental/down payment assistance, and replacement housing payments. o Inspect replacement dwellings to determine if they meet "decent, safe and sanitary" requirements. Prepare all applicable benefit claim forms, secure claimant's signatures on claim forms, and submit claim forms to Client for processing and payment. 10. Monitor the move to replacement site, as necessary. 11. Deliver benefit checks and other appropriate payments to claimants. 12. Maintain necessary case documentation and provide Client 'with periodic standard status reports. Page 1 of 2 Overland, Pacific & Cutler, Inc. will conduct the following activities necessary for the effective relocation of business/nonresidential occupants: Conduct personal, on-site interviews of prospective displacees to ascertain relocation needs and special requirements. Inform displaced businesses of available relocation assistance services and benefits, and explain relocation process. o Prepare and distribute Informational Statements, Notices of Displacement, 90-Day Notices to Vacate, and other notices, as may be required. Assist displacees in locating replacement business sites and provide written referrals to same, if available. o Provide on-going advisory assistance to business displacees, including lists of qualified movers and vendors. Prepare specifications for the move and inventory of personal property, insuring thorough coordination with Client and/or legal counsel, that no real property is included on the personal property inventory list. Coordinate the walk-through for a minimum of two bids and move estimates with movers and the displaced business. 8. Monitor the actual move to replacement site and re-establishment activities, as necessary. Determine eligibility for and proposed amount of relocation benefits, including actual and reasonable moving payments, re-establishment payments, and fixed payments. 10. Prepare all applicable benefit claim forms, secure claimant's signatures on claim forms, and submit claim forms to Client for processing and payment. 11. Deliver benefit checks and other appropriate payments to claimants. 12. Maintain necessary case documentation and provide Client with periodic standard status reports. Page 2 of 2 EXHIBIT "B" PROPOSAL and SCOPE OF SERVICES PROPERTY MANAGEMENT SERVICES Attached hereto is: 1) Consultant' s Proposal for Property Management Services dated January 13, 2004. January 13, 2004 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 949.951.5263 ph 949.951.6651 fax www. OPCservices.corn Ms. Christine Shingelton Assistant City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Proposal For Property Management Services Library Project Dear Ms. Shingleton: Overland Pacific & Cutler (OPC) is pleased to submit its proposal to provide property management services for the commercial tenants occupying the DiNicola property located at 285 East Main and employee occupying the Emery property located at 330 - 334 Preble Drive. The DiNicola property is currently occupied by 9 business occupants who are on month-to-month tenancies and thc Emery property is occupied by 3 residential occupants on month-to-month tenancies. Services requested are to provide property management services on an interim basis as opposed to an asset based management approach, i.e. collect rents and maintain units/property in clean and safe condition until tenant vacates, thereupon secure unit for no further occupancy. OPC has a complete understanding and experience with the requested services, providing similar services to numerous public agencies in the Southern California area. Based on our understanding of the project and the attached scope of services, our fees to provide thc requested services are as follows: One Time Set-up fee: Fixed fee of $125.00 per occupied unit Monthly Management Fee: Fixed fee of $85.00 per occupied unit or $300 per month, whichever is greater Subcontracted services: Cost of the Contractor's invoice and/or wages plus fifteen (15) percent Collected funds will be kept in a trust account with a proposed reserve of $5,000 to be built up with collected rents. This reserve will be used to pay for approved expenses and fees. Funds exceeding the reserve will be sent to the City on a monthly basis. TENANT PRO sofavare will be used to manage each unit as well as to provide appropriate reports to the City. If extraordinary events occur related to the property or a particular tenant which require staff time beyond reasonable standards that are not anticipated in the attached scope of services, additional fees may be incurred based on the hourly rate schedule provided below. Additionally, specifically called meetings with City staff or appearances before City or Agency Council will be billed hourly. Lastly, any consulting services necessary to support evictions, litigation, such as depositions, pre-trial research and, court testimony, is not part of the stated fee and shall be billed hourly at 150% of the below rates. OPC's current hourly rate schedule through June 30, 2004 is as follows: Corporate Officer/Regional Manager Property Manager Real Estate Technician/Project Support Secretarial/Clerical $125.00 per hour $90.00 per hour $60.00 per hour $40.00 per hour We appreciate the opportunity to submit this proposal to provide the requested services. We look forward to assisting the City in the management of the identified property. If you have any questions or require additional information, please do not hesitate to contact me. Respectfully submitted, OVERLAND, PACIFIC & CUTLER, INC. Mark La Bonte, SR/WA Vice President Attachment ATTACHMENT SCOPE OF SERVICE Overland Pacific & Cutler, Inc. will provide the following services: C. D. E. F. G. H. I. Prepare and deliver rental agreements tailored to project objectives. Collect monthly rent payments. Prepare and deliver required notices. Collect keys and verify abandonments. Provide utility disconnection and meter removal. Administer emergency and unsafe condition repairs. Contract building and ground maintenance as needed. Contract board-up and other security services as units become vacant. Pay vendor fees and utility bills Additional services which can be provided and fee proposed on a case-by-case basis is as follows: A. Coordinate and provide asbestos and demolition cost estimates B. Coordination of asbestos abatement and demolition contractors to raze property. EXHIBIT "C" SPECIAL REQUIREMENTS Trust Account Administration In order to expedite relocation services under this Agreement, the Agency and Consultant shall establish a segregated trust account at Wells Fargo Bank, in the name of "Overland Pacific & Cutler, INC., In Trust for City of Tustin." The Agency shall make an initial deposit of $200,000.00 and replenish funds upon a wfittm notice from Consultant as additional funds may be needed or the trust account balance is less than $50,000.00. The account is to be administered by the Consultant for the payments of a.) relocation benefits as approved by the Agency and payable to, or on behalf of displaces, and b.) bank fees and other administrative expenses for maintaining the trust account. Consultant agrees to maintain accounting records of said account in a format prescribed by generally accepted accounting standards and to provide detailed disbursement reports monthly to the Agency. Upon completion of the project, the account shall be closed and the balance of funds returned to the Agency. Other Special Requirements 1. The Consultant shall comply with all applicable federal, state and local laws applicable to its activities. The Consultant shall not release to the public or press any information regarding the purpose/scope of services to be accomplished or data specific to the project required under the Agreement without prior authorization of the contract officer. All such information is considered confidential. All inquiries made of Consultant shall be immediately referred to the Contract Officer. Consultant shall present to the Agency certificates of insurance and endorsement forms verifying that the Consultant has the insurance as required by this Agreement. Said form shall be reviewed and approved by the office of the City Attorney. A certificate of insurance form is attached. Consultant shall utilize those professional staff members to perform services as identified in Consultant's proposal. No substitution shall be made without the advance written approval of the Contract Officer. No increase in compensation or reimbursable salary rates will be allowed when personnel or firm substitutions are authorized by the Contract Officer. 5. The Consultant shall review and replace project personnel who do not perform assigned duties in a manner satisfactory to Contract Officer when requested by Contract Officer. 7. Progress repons shall be submitted by Consultant with billing requests. At minimum these 12 reports shall specify the period reported, tasks completed, tasks underway, percent of project completed and strategies to solve any timing delays. 8. Consultant shall be required to meet with the Contract Officer as determined necessary or desirable to discuss elements of the Scope of Work and project's progress. Field Investigation necessary. The Consultant shall obtain all necessary field data and make investigations and studies necessary to properly accomplish the work ~equired under this Agreement. 13 EXHIBIT "D" SCHEDULE OF COMPENSATION Compensation 1. As compensation for the Consultant's services under this Agreement, the Agency shall pay the Consultant a not-to-exceed fixed amount orS116,290.00. Expense Reimbursement The Consultant's not-to-exceed compensation for services under this Agreement may include reimbursement for miscellaneous expenses. The Agency shall reimburse Consultant for direct expenses such as and including postage, telephone charges and Consultant travel subject to the following restrictions: a. Expenses for air travel, if required, shall be for standard, economy class only; b. Itemized payment statements shall set forth in detail all actual reimbursement expenses during the preceding period. Compensation for Additional Services In the event the Agency requires services in addition to those described in Exhibit A, said services must first be approved in writing by the Contract Officer. The Consultant shall be compensated at the Consultant's standard hourly rates for professional services, plus reimbursement of expenses or a fixed amount agreed to in writing by the Agency and Consultant. Method of Pawnent As a condition precedent to any payment to Consultant under this Agreement, Consultant shall submit to the Agency a statement of account which clearly sets forth by dates the designated items of work, as well as reimbursable expenses, for which the billing is submitted. The payment request shall identify each task required by the Agreement, percent of completion, amount of actual reimbursable expenses and requested amount to be billed against each task. Timing of Payment 5. The Agency shall review Consultant's statements and pay Consultant for services rendered and costs incurred hereunder, at the rates and in the amounts provided hereunder. 14 EXHIBIT "E" SCHEDULE OF PERFORMANCE Time is of the essence. Consultant shall attempt to complete the Scope of Services under this Agreement within twelve (12) months of receipt of a Notice to Proceed in accordance with Attachment No. 1.