Loading...
HomeMy WebLinkAbout1994-11-22 - AGENDA REPORTS - VALUATION ANALYSIS PROJ (2)AGENDA REPORT Cityger Aproval Item t b resented by: l nald R. Duckworth NEW BUSINESS DATE: November 22, 1994 SUBJECT: Contract with CRC-Copenhaver, Inc for Parcel -Based Assessed Valuation Analysis, Redevelopment Project Area Boundary Realignment, and Financial Projections DEPARTMENT: Community Recovery Agency Background The cornerstone of the conceptual litigation settlement between the City/Redevelopment Agency and the Castaic Lake Water Agency is the creation of a reduced Project Area size (from $7.2 Billion base secured assessed value to $5.4 Billion). The next step, and one which should be undertaken immediately, is to precisely determine which particular assessors parcels should be removed from the original Project Area in order to achieve the reduced target size. This process will allow for the compilation of a final data base of parcels which comprise the Project Area. That data base will in turn enable the preparation of final financial projections for the initial Project Area, as well as an initial financing projections, and the drafting of a final formal legal description of the Project Area by the City's engineering survey contractor, Lastly, the final legal description will be filed with the County Assessor's Office and the State Board of Equalization and become the basis for the collection of tax increment by the City. All of the above work and filings are planned to be phased as appropriate to the settlement of the CLWA litigation and the State and County tax assessment processes. The City's technical redevelopment service firm, GRC-Copenhaver, Inc., should be authorized to perform the required parcel based assessed valuation analysis and Project Area boundary realignment in accordance with the scope of services presented in the attached contract. The firm has the necessary automated County Assessor parcel data and is able to perform the work to meet our tight time requirements. Costs for the. GRC-Copenhaver work will not exceed $25,000. In addition, however, several additional cost items are implied, including: preparation of a final legal description ($5,000 to $10,000 estimate) and possible State and/or County filing/processing fees. Monies for general professional services of this nature have been included in the adopted budget. These costs are in turn reimbursable from future tax increments. Agenda Item QW :� Recommendation It is, recommended that the Redevelopment Agency Board authorize the Executive Director/City Manager to execute a contract as approved by the City Attorney with GRC-Copenhaver, Inc.. for the described services. Additionally, the Executive Director/City Manager should be authorized to have necessary legal descriptions and governmental processing of the revised Project Area performed at relatively minor additional cost. Attachments Contract Letter from GRC-Copenhaver dated November 16, 1994 �amrer.v\x,712294.1 AGREEMENT FOR REDEVELOPMENT CONSULTING SERVICES between the SANTA CLARITA REDEVELOPMENT AGENCY and GRC-COPENHAVER, INC. THIS AGREEMENT is made and entered into this day of 1994, by and between the Santa Clarita Redevelopment Agency (hereinafter called "Agency"), and GAC Copenhaver, Inc., a California professional corporation (hereinafter called "Consultant"). WHEREAS, Agency desires to undertake activities necessary to implement the plans of the Santa Clarita Community Recovery Program, which services require a level of staff support presently unavailable to Agency; and WHEREAS, Consultant represents that it is qualified to perform the services contained, it is mutually agreed between the parties as follows: NOW, THEREFORE, and in consideration of mutual covenants hereinafter contained, it is mutually agreed between the parties as follows: ARTICLE I. SCOPE OF SERVICES Consultant shall perform professional services as are directed by the authorized Agency representatives, and as described in the attached November 16, 1994, letter. ARTICLE II. AMENDMENTS TO SCOPE OF SERVICES Agency may request changes in the Scope of Services to be performed hereunder. Such changes, including any increase or decrease in the rate of Consultant's compensation, shall be mutually agreed upon by and between Agency and Consultant and shall be incorporated in written amendments to this Agreement. ARTICLE III. CONSULTANT'S COMPENSATION AND METHOD OF PAYMENT For services provided pursuant to Article I, of this Agreement, Consultant shall be compensated at the following hourly rates, payable within thirty (30) days following receipt of Consultant's invoice: Principals $115.00 per hour Senior Associates $85.00 per hour Associates 70.00 per hour Invoices will describe services provided and the time required for each service. Sum total of all Consultant's invoices shall not exceed twenty-five thousand dollars ($25,000.00). Hourly rates indicated above also pertain to and include monies relating to travel expenses. Travel -related costs shall not be billed to Agency as part of this agreement. ARTICLE IV. TIME OF PERFORMANCE Consultant agrees that it will diligently and responsibly pursue the performance of the services required of him by this Agreement. If a delay beyond the control of Consultant is encountered, a time extension mutually agreed upon in writing by Agency and Consultant may be granted. Consultant shall present documentation satisfactory to Agency to substantiate any request for a time extension. ARTICLE V. COOPERATION BY AGENCY All information, data, reports, records, and maps as are existing, available and necessary for carrying out the work as outlined in the Scope of Services shall be furnished to Consultant without charge by Agency. Agency shall cooperate with Consultant in every way possible to facilitate, without undue delay, the work to be performed under this Agreement. ARTICLE VI. DESIGNATED REPRESENTATIVES The following individuals are hereby designated as representatives of Agency and Consultant respectively to act as liaison between the parties:, Redevelopment AgenU., Donald R. Duckworth - Community Recovery Agency Consultant Stephen A. Copenhaver - President Any change in designated representatives shall be promptly reported to the other party in order to ensure proper coordination of the project. ARTICLE VII. STANDARDS OF PERFORMANCE Consultant shall comply with all applicable laws, ordinances, and codes of the federal, state, and local governments while performing the services described herein in a good, skillful, and professional manner. ARTICLE VIII. OWNERSHIP OF DOCUMENTS All reports, files, and other material prepared under this Agreement shall be and remain the property of the Agency. ARTICLE IX: LEGAL REVIEWS All legal reviews of documents prepared by Consultant are the responsibility of the Agency ARTICLE X. AUTHORITY OF CONSULTANT Consultant shall be an independent contractor and shall not incur or have the power to incur any debt, obligation, or liability whatsoever against Agency. Consultant shall, as required, represent the Agency as its agent in contracts, solicitations, and negotiations concerning the implementation of the Santa Clarita Recovery Program, but Consultant shall be without authority to bind Agency in any way with respect to terms, conditions, sale prices, times of performance, or any other matter related to Agency's legal liability or performance with respect to the implementation of the Santa Clarita Recovery Program. ARTICLE XI. TERMINATION Either party may terminate this Agreement upon thirty (30) days' written notice to the other. In the event of such termination, Consultant shall be compensated for all services performed and expenses incurred to the date of notice of termination as described in a written report to Agency prepared by Consultant, less any amounts previously paid by Agency. ARTICLE XII. NOTICES Notice by Agency to Consultant shall be deemed delivered if sent by certified mail, return receipt requested to GRC-Copenhaver, Inc., 1340 Valley Vista Drive, Suite 120, Diamond Bar, California 91765. Notice by Consultant to Agency shall be deemed delivered if sent by certified mail, return receipt requested to the Community Recovery Agency, Santa Clarita Redevelopment Agency, 23920 Valencia Boulevard, Suite 300, Santa Clarita, California 91355. ARTICLE XIIL CONFLICT OF INTEREST Consultant represents and agrees that Consultant has not employed any person to solicit or procure this Agreement, and has not made, and will not make, any payment of any agreement for the payment of any commission, percentage, brokerage, contingent fees, or other compensation in connection with the procurement of this Agreement. Consultant further represents and agrees that he has not now, and will not, acquire any interest, direct or indirect, present or prospective, in any of the property acquired by Agency, during the term of this Agreement. Consultant further represents that it has not employed, and will not employ in connection with work to be performed hereunder, any person having an interest, direct or indirect, in any of the property acquired by Agency during the term of this Agreement and Consultant will notify Agency of and will not work on any projects which may represent or appear to represent a conflict of interest with any other municipal client of Consultant. ARTICLE XIV. INSURANCE REQUIREMENTS Consultant shall obtain and maintain during the life of this Agreement automobile liability, including owned, hired, and non -owned vehicles, except as may be stricken out by Agency. Endorsement shall be obtained for the policies providing the above insurance for the following provisions: 1. Additional Insureds "The Santa Clarita Redevelopment Agency, Santa Clarita, California, its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with Agency." 2. Notice "Said policy shall not terminate, nor shall it be canceled, nor the coverage reduced, until thirty (30) days after written notice is given to Agency." 3. Limits The policy limits shall have minimum coverage per occurrence as follows: $100,000 - Property Damage; $250,000 - Injury to One Person/Any Once Occurrence; and $500,000 - Injury to More Than One Person/Any One Occurrence In addition to the insurance coverage in the paragraphs above, Consultant shall obtain and maintain, during the life of this Agreement, Workers' Compensation Insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation Insurance. Consultant shall provide to Agency certificates of insurance showing the insurance coverage described in the paragraphs above, in a form and content approved by Agency, prior to beginning work under this Agreement. ARTICLE XV. INDEMNIFICATION CLAUSE Neither party hereto shall be liable for any damages proximately resulting from the negligent or wrongful actions or omissions of the other parties, employees, agents, or contractors performing under this Agreement, and each party shall indemnify, defend, and save harmless the other party from such damages or liability. ARTICLE XVI. ENTIRE AGREEMENT This Agreement shall constitute the entire Agreement between the parties. Any amendments to or clarification necessary to this Agreement shall be in writing and acknowledged by both parties to the Agreement. ARTICLE XVII. MISCELLANEOUS If either party to this Agreement is required to initiate or defend or is made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which 4 may be granted, whether legal or equitable, shall be entitled to reasonable attorneys' fees. Attorneys' fees shall include attorneys' fees on any appeal, and in addition, the party entitled to attorneys' fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all necessary costs the Court allows in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. CUTE Consultant agrees that each task as outlined in the work program shall be staffed by members of Consultant's team who are qualified and have the necessary experience to competently perform the task in a manner satisfactory to Agency. ITO Consultant shall not employ subcontractors to perform the tasks required in the work program without written approval of Agency. 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 Agency or the City for any amount which may become due to Consultant or its successor, or for breach of any obligation of the terms of this Agreement. This Agreement shall be construed and interpreted both as to validity and to performance under the laws of the State of California. Any and all 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 Los Angeles, State of California, or any appropriate Courtin such County. Consultant covenants and agrees to submit to the personal jurisdiction of such Court in the event of such action. 5 IN WITNESS WHEREOF, Consultant and Agency have signed this Agreement on the date set forth hereinabove. Attest: Agency Secretary Date Approved as to form City Attorney mm ecov\conteaclgm City of Santa Clarita Executive Director GRC-COPENHAVER, INC. M Stephen A. Copenhaver, President NOV-16-94 WED 11:08 GQC- GRO-COPENHAVER, INC, COIDENNAM, INC. FAX N0, 9093967913 Economic Development • Rcdevclopment= City Planning - Qcat Eetato Consulting November 16, 1994 Mr. Don Duckworth Recovery Program City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355 Dear Mr. Duckworth: P. 02 We are leased to present this proposal to provide professional services with respect to identifying revised Project Area boundaries, preparing a base year data base and tax increment projections. The work will be undertaken by the team of HdL Coren and Cone (HdL C & C) and GRGCopenhaver, Inc. (GRC). HDL C & C provides Property tax monitoring and auditing services and financial consulting services to cities, redevelopment agencies and special districts. HdL C & C now assists more than 60 local government agencies with the monitoring, verification and analysis of their property tax revenues. Their property tax auditing service has identified and corrected more than $3 billion of assessed value, miscodings, and they have participated in the issuance of more than $195 million of tax allocation bond issues. GRC has worked for more than 40 California redevelopment agencies and cities. The firm specializes in economic development, planning, real estate matters, and the analysis and administration of redevelopment agencies. GRC is the author of recent documents utilized in the Recovery Program negotiations. Understanding of the Required Services Current negotiations pertaining to the proposed settlement agreement on the Recovery Plan require the identification of new Project Area boundaries and the establishment of a parcel data base for the revised area. We believe that accurate base year data at the outset of a redevelopmentproject is particularly important because errors in a base year can impact the revenues of a redevelopment agency over the life of a project area. In addition, the Agency is requesting a tax increment projection that may be utilized to support the issuance of tax allocation bonds. We have a great deal of experience with the preparation of tax increment projections, both for bond issues and for other fiscal planning purposes. We would note that the assumptions underlying a tax increment projection vary in accordance with the purpose for which the projection is generated. roosa A. Data Base We propose to establish both the secured and unsecured base year values of the revised Project Area. The secured verification will consist of our preparation of an independent listing of all Parcels in the revised Project Area and a comparison secured values over a two year period. We will also compare our parcel list with a County generated list, if VnAn v.. —, v;.F, nom.,. ,0.,,;A 11n rn.,.,,.A P. C'aMff nig Q1765 Te -b-.4 mP, f9n91 996.7714 rm (909) 396-2913 tOV-16-94 WED 11:09 GRC-COPENHAVER, INC. FAX NO. 9093967913 Mr. Don Duckworth November 16,1994 Page 2 such a list is available. In regard to the verification of unsecured assessed values, our report will present an estimate of the total unsecured assessed value of the Project Area. B. Tax Increment Projection P. 03 We propose to prepare two taxincrement projections for the revised Project Area. The first project would be based on conservative assumptions that are generally utilized to support the issuance of tax increment supported debt. A tax increment projection utilized for a bond issue generally limits growth to taxable values to the constitutionally established two percent inflation adjustment on real property and new development under construction or for which a written development agreement exists. The second project would be based upon a less conservative set of assumptions developed in conjunction with the Agency's staff to reflect Potential development and growth trends. Both sets of the projections will take into consideration the revenues passed through to taxing entities pursuant to AB 1290, ERAF payments (if any), and the, low and moderate income housing requirements. Both projections will support the negotiations with the Castaic Lake Water Agency. C. Report We will provide the Agency with a report that will describe the results of our verification of secured and unsecured assessed values, a listing of parcels and the assumptions utilized to project the future tax increment revenue estimated to be derived from the Project Area. The data base will be installed on the City's computer system and the staff trained if the appropriate hardware is made available. Personnel Martin C. Coren, who will have the principal responsibility for the proposed bond services, has personally participated in the issuance of more than $2.5 billion of tax allocation bonds. Stephen Copenhaver, of GRC-Copenhaver, Inc., has over 25 years of experience in redevelopment matters, and will have the responsibility of assisting in identifying development trends, new development values for the tax increment projections and developing revised project area boundaries with the Recovery Program staff. fte Ourproposed budget includes the establishment of a data base for the revised project area boundaries, work with staff in developing the optimum boundaries, coordination with the engineering firm preparing the revised legal description, coordination with the Water Agency's fiscal consultant and the preparation of tax increment projections suitable for the review of the bond market and underwriters. The professional fees for this work is $20,000 plus $5,000 at the time a debt instrument is issued. This proposal assumes that the Recovery Program will make available to us the appropriate parcel maps. Should the Agency request, we would be available to provide Additional Services. Additional Services include, but are not limited to, meetings, presentations to rating agencies, insurance companies and additional research. NOV-16-94 WED 11 11 Mr. Don Duckworth November 16, 1994 Page 3 Schedule GRC-COPENHAVER, INC, Principal Senior Associate Senior Analyst FAX N0. 9093967913 $115 per hour $85 per hour $70 per hour We are prepared to generate the data base within three (3) weeks and the tax increment projections within five (5) weeks. Our ability to meet this schedule is dependent upon the availability of necessary information from the Agency, the County and any developers currently involved with the Project Area. The completion of Additional Services, if any, will be scheduled at the time of authorization. Please call if additional information is required. Sincerely, r Stephen A. Copenhaver President P. 04