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HomeMy WebLinkAboutRes2019-116 Sponsored by: Meszaros lr CITY OF SEWARD, ALASKA RESOLUTION 2019-116 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH MACSWAIN ASSOCIATES, LLC TO RE-APPRAISE 43 LOTS FOR THE CITY OF SEWARD IN THE AMOUNT OF $38,700, AND APPROPRIATING FUNDS WHEREAS, per City of Seward lease agreements, Article 3, the value of all leased land must be re-appraised every five years; and WHEREAS, in accordance with SCC 6.10.135 and SCC 6.10.140, a Request for Proposals (RFP) was issued on November 6, 2019; and WHEREAS, one (1) business responded to the RFP by the November 26, 2019 deadline and was evaluated by staff from the Harbor Department; and WHEREAS, MacSwain Associates, LLC issued a responsive bid of $38,700 to reappraise the 43 City of Seward leased lots. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The city manager is hereby authorized to enter into a contract with MacSwain Associates, LLC to reappraise 43 lots owned by the City of Seward in the amount of$38,700. Section 2. Funding in the amount of$18,350 (50%) for this contract will come from the Harbor Administration budget 11000-2001-7009 and $18,350 (50%) will come from the General fund budget 01000-1180-7009. Section 3. This resolution shall take effect January 1, 2020. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9`h day of December, 2019. I i T E Y � S 1, AL. . 'A Irt � , , isty Terry, I or CITY OF SEWARD, ALASKA RESOLUTION 2019-116 AYES: Seese, Butts, Lane, Osenga, Baclaan, McClure, Terry NOES: None ABSENT: None ABSTAIN: None ATTEST: rends J. Ballou, MC City Clerk °° � 8ta (City•S o�..p`° 'v'c; ,..1 p : � c� ! T II0w •• I of • • A ` .) a a •• I *es:fa OF PL'- �3`s -OfOBiFrRD Agenda Statement Meeting Date: December 9, 2019 = 1 To: City Council • Through: Scott Meszaros, City Manager From: Norm Regis, Harbormaster Agenda Item: Appraisal Contract with MacSwain Associates, LLC BACKGROUND & JUSTIFICATION: The city of Seward currently leases 43 lots to different LEESEE's throughout the City of Seward. The City of Seward reappraises its leases every five years according to Article 3 of the 43 Lease Agreements signed by LEESEE's, and approved by the Seward City Council. Article 3 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2020, and on the same date every five years thereafter(each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety(90) days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY (including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty(30)days of receipt of the appraiser's report,and LESSEE shall then engage an independent State of Alaska certified MAI appraiser(Member, Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. 138 This RFP was advertised according to SCC 6.10.135 and SCC 6.10.140.The RFP's were opened on November 26`h at 2pm. One business responded to the RFP with a responsive bid of$38,700. MacSwam Associates, LLC. With only one Company responding no scoring was needed to determine the winning proposal. INTENT: Enter into a contract with MacSwain Associates,LLC in the amount of$38,700.00 to reappraise 43 City of Seward leased properties. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (Page I-13 3.2.1.]):Manage land use to facilitate 1. economic development while maintain the historic, small town X character of Seward 2. Strategic Plan (page 9):Growth Management and Land use planning X 3. Other (list): FISCAL NOTE: Approved by Finance Department: ATTORNEY REVIEW: Yes X No Not Applicable RECOMMENDATION: Approve Resolution 2019-116 authorizing the City manager to enter into a contract with MacSwain Associates, LLC to reappraise 43 lots leased by the City of Seward in the amount of$38,700. 139 City ®f Seward Land Appraisal Services Appendix A — Bid Submittal Form Date ( 11/25/19 Company Name MacSwain Associates, LLC i Type of Organization (Individual' Limited Liability Corporation Limited Partnership, etc. Printed Marne and 'Title of Steve MacSwain,MAI - Owner Authorised Agent Address 4401 Business Park Blvd.,Suite 22,Anchorage,AK 99503 Contact Person Steve MacSwain,MAI r Contact Phone Number 907-561-1965 Contact Email Address s.macswain@macswain.com Contact Fax Number 1907-561-1955 Addenda: Receipt of addenda number (s? 1 is/are hereby acknowledged (please insert `no' if no addenda were issued); Lump sum price to appraise 43 parcels $ 38,700 (Dollars) Uth'o, rued Signature and date 140 Professional Services Agreement with for Land Appraisal Services This AGREEMENT, made and entered into this 11" day of January, 2020 by and between the CITY OF SEWARD, a municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and MacSwain Associates, LC, a Land Appraisal Company authorized to do business in Alaska, with offices locatedat 4401 Business Park Blvd, Suite 22, Anchorage, AK 99503, hereinafter referred to as the "Contractor". WITNESSETH WHEREAS, the City of Seward wishes to have certain lands appraised; and WHEREAS, MacSwain Associates, LLC has demonstrated qualifications to perform these appraisals and in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement. 1.2 "Change" is an addition to, or reduction of, or other revision in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City," "the client", and "Owner" shall all mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean the City of Seward Harbormaster and include any successor or authorized representative. 1.5 "Project" shall mean the appraisal of a number of municipal owned properties or properties to be acquired that are located in the City of Seward to provide an appraisal report, which contains the Fair Market Value of the Fee Simple interest in land, a Lease Rate Analysis, and the Fair Market Rental Value of leasehold interests as described herein. 2.0 TERM OF AGREEMENT, This Agreement shall take effect upon execution. This Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The 1 00878915.DOC 141 work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and after compliance with all applicable statutes, ordinances, and regulations. 3.0 Cost of Agreement. The total fee to be paid to the Contractor for this Agreement is a fixed fee of $38,700.00 for Land Appraisal Services outlined in 4.0 Scope of Services, notwithstanding any other articles and conditions except if the fee is increased or decreased by a written Change issued pursuant to Section 26.0 of this Agreement. 3.1 Extension Error. In the case of an error in the extension of prices in the bid, unit prices will govern. 3.2 Additions/Deletions. The City reserves the right to add or delete parcels from the contract. Provided that the additional (or deleted) parcels are similar in size and type, the unit fee to be paid for additions (or deletions), including individual appraisals, will be the average contracted fee of all parcels within that priority group. Other types of additions (or deletions) will be negotiated on a case by case basis. 3.3 Payments. Payment will be made within thirty (30) working days after receipt and approval of Contractor's billing statement and following acceptance by the City of Contractor's final products. Unless otherwise agreed, payment will be based on a properly documented invoice showing the project completed. 4.0 SCOPE OF SERVICES. The City and Contractor have agreed upon a scope of work described in the Contractor's proposal, to provide professional land appraisal services based on approved standards and instructions, to include: a. Establishing the Fair Market Rental Value of leasehold interests through a Lease Rate Analysis, which establishes city land lease rates as a percent of fair market fee simple land value. This should include specific recommendations regarding the rates to be applied in the City's boat harbor and marine industrial areas. b. Establishing the fair market fee simple value and the rental adjustment of parcels in Attachment B. c. Establishing the fair market fee simple value of parcels identified in Attachment B to provide the basis for negotiating price for possible acquisition of the properties. 142 2 00878915.DOC d. Submitting three (3) copies of the draft appraisal report in photocopy form not later than February 20, 2020. e. Submitting three (3) copies of the final report - one (1) original with color photos in a three ring binder, and two (2) spiral bound photocopies not later than March 6, 2020. This Scope of Services can only be changed in writing pursuant to Section 26.0 of this Agreement. 5.0 COMPLETION DATE. The completion date for all work described herein shall be as follows: 5.1 Draft Report. The Draft Appraisal Report shall be due not later than February 20, 2020. 5.2 Final Report. The Final Appraisal Report shall be due not later than March 6, 2020. 6.0 PERSONNEL/ORGANIZATION 6.1 Protect Coordinator and Principal Appraiser. Work and services provided by the Contractor will be performed by: 6.2 Key Personnel. The following personnel are considered to be essential to the provision of adequate services by the Contractor: 6.3 Substitution of Key Personnel. The Contractor shall give the City reasonable advance notice of any necessary substitution of key personnel and shall submit justification therefore in sufficient detail to permit the City to evaluate the.impact of such substitution on this Agreement. No substitutions shall be made without the written consent of the City. 6.4 Removal of Protect Personnel. The City may, with reasonable cause, upon providing written notice to the Contractor, cause to be removed immediately from the Project or any phase thereof, any personnel whose continued involvement in the opinion of the City, is not in the best interest of the Project or the City. The Contractor, upon receipt of such written notice to remove an individual(s), shall have five (5) business days to provide the City with the name and summary of credentials of proposed replacement(s) for those removed. The participation of those proposed personnel shall be subject to approval by the City. 7.0 STANDARD OF PERFORMANCE. The Contractor agrees to provide all required 143 3 00878915.DOC professional services to complete the project and any additions or changes thereto. The Contractor accepts the relationship of trust and confidence established between it and the City by this Agreement. The Contractor covenants with the City to furnish its best skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Contractor shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder required professional judgment and skill. In those cases, the Contractor agrees to adhere to the standards of the applicable profession and as set out in Attachment D, Land Appraisal Instructions. 8.0 TIMELINESS OF PERFORMANCE. Time is of the essence in this contract. The City may well time matters relating to the Project and development of the Appraisal Report based upon and in reliance upon the Scope of Services dates and time schedules for performance by the Contractor. Contractor's failure to meet any such deadlines or required performance may adversely imperil other contractual obligations of the City. If the Contractor fails to deliver the Final Appraisal Report by March 6, 2020 Contractor shall pay as liquidated damages and not as penalty $200 per day for each day after March 6, 2020 the Final Appraisal Report is not delivered. 9.0 COMPLIANCE WITH LAWS, The Contractor shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive order, ail applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Contractor, the City, or the service which may be in effect now or during performance of the services. The Contractor shall indemnify and save harmless the City and all its officers, agents, and employees against any claim or liability from or based upon the violation of any such law, ordinance, rule, regulation, order, or decree whether such violation be the result of conduct by the Contractor, its agents, or employees. 10.0 INDEMNITY. To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless and save the City, its officers, agents and employees harmless from any claims or liability of any nature or kind including costs and expenses (including attorneys' fees), for or on account of any and all legal actions or claims of any character whatsoever alleged to have resulted from injuries or damages sustained by any person or persons or property (including contract rights or intangible assets) and arising from, or in connection with, performance of this Agreement, and caused in whole or in part by any negligent act or omission of the Contractor; provided, however, that this paragraph shall not be construed so as to require indemnification of the City from such claims, damages, losses, or expenses caused by or resulting from the sole negligence of the City. 11.0 INSURANCE. The Contractor understands that no City insurance coverage, including Workers' Compensation, are extended to the Contractor while completing the terms of this Agreement. The Contractor shall carry adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, general public liability, automobile, professional liability, and property damage including a 144 4 00878915.DOC contractual liability endorsement covering the liability created or assumed under this Agreement. The Contractor shall not commence work under this Agreement or any work on any phase of the Project until the Contractor provides the City with certificates of insurance evidencing that all required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is an additional insured thereunder as respects liability arising out of or from the work performed by Contractor of City of Seward. b. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies specified in the certificate. c. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials. d. The insurance coverage is primary to any comparable liability insurance carried by the City of Seward. Upon request, Contractor shall permit the City to examine any of the insurance policies specified herein. Any deductibles or exclusions in coverage will be assumed by the Contractor, for account of, and at the sole risk of the Contractor. The minimum amounts and types of insurance provided by the Contractor shall be subject to revision at the City's request in order to provide continuously throughout the term of the Contract a level of protection consistent with good business practice and accepted standard of the industry. 12.0 GOVERNING LAW The laws of Alaska will determine the interpretation of this Agreement and performance thereof. 13.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Contractor for services hereunder include full compensation for all work products and other materials produced by the Contractor and its subcontractors pertaining to this Agreement. The originals of all material prepared or developed by the Contractor or its employees, agents, or representatives hereunder, including documents, drawings, designs, calculations, maps, sketches, notes, reports, data, models, computer tapes, and samples shall become the property of the City when prepared, whether delivered or not, and shall, together with any materials furnished the Contractor and its employees, agents, or representatives by the City hereunder, be delivered to the City upon request and, upon termination or completion of this Agreement. Materials previously created and copyrighted by the Contractor included in this project will remain property of the Contractor. Copies will be made available to the City upon request. Materials purchased from and copyrighted by third parties are not included in this provision. 14.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Contractor agrees to defend, 145 5 00878915.DOC indemnify, and hold harmless the City harmless from and against any and all claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Contractor or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Contractor, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 15.0 NONWAIVER. No failure of the City or Contractor to insist upon the strict perfor- mance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred, shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every term, right, or remedy of this Agreement shall continue in full force and effect. 16.0 SAFETY/PERFORMANCE. The Contractor shall perform the work in a safe and workmanlike manner. The Contractor shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage, and shall take all other reasonable precautions to protect workers and the public from injury or damage. 17.0 SUSPENSION OR TERMINATION. 17.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perform in accordance with its terms. If the City terminates this Agreement it will pay the Contractor a sum equal to the percentage of work completed that can be substantiated by the Contractor and the City. However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure. 17.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Contractor will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Contractor can establish and which would have been compensated for over the life of the phase of the appraisal underway, but because of the termination or suspension would have to be absorbed by the Contractor without further compensation. 17.3 Activities Subsequent to Receipt of Notice of Termination or Suspension. Immediately upon receipt of a Notice of Termination or suspension and 146 6 00878915.DOC except as otherwise directed by the City or its Representative, the Contractor shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; b. terminate all orders and subcontracts to the extent that they relate to the performance of the work terminated or suspended by the Notice. c. place no further orders for materials, services, or facilities, except as may be necessary for completion of such portion of the work under this Agreement that is not terminated or suspended; d. assign to the City, in the manner and to the extent directed by the City or its representative, all of the right, title, and interest of the Contractor under the orders of subcontracts so terminated, in which case, the City shall have the right, at its discretion, to settle or pay any or all claims arising out of their termination of such orders and subcontracts; e. with the approval of the City or its representative, which shall be final and conclusive for all purposes of this paragraph, settle all outstanding liabilities and all claims arising out of termination of such orders and subcontracts; the cost of which would be reimbursable in whole or in part, in accordance with the provisions of this Agreement; and f. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the times, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 18.0 EQUAL EMPLOYMENT OPPORTUNITY. The Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, martial status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Contractor shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, national origin, ancestry, age, or marital status. 19.0 NO ASSIGNMENT OR DELEGATION. The Contractor may not assign or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. This consent shall not be unreasonably withheld. 20.0 INDEPENDENT CONTRACTOR, The Contractor shall be an independent contractor in the performance of the work under this Agreement, and shall not be an employee 147 7 00878915.DOC of the City. 21.0 PAYMENT OF TAXES As a condition of performance of this Agreement, the Contractor shall pay all federal, state and local taxes incurred by the Contractor and shall require their payment by all subcontractors or any other persons in the performance of this Agreement. 22.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Contractor. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 23.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Contractor. All previous or concurrent agreements, representations, warranties, promises, and conditions relating to the subject matter of this Agreement are superseded by this Agreement. 24.0 COMPLETION OF WORK, TERM OF CONTRACT. The Contractor shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Attachments. 25.0 CLAIMS AND DISPUTES. All claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be submitted to mediation prior to the filing of any court action with respect to this Agreement. All court action related to this Agreement or the performance thereunder will be filed in the Superior Court for the State of Alaska, Third Judicial District at Kenai. 26.0 CHANGES IN SCOPE OF WORK 26.1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Contractor do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of change orders and design changes, due to errors and/or omissions by the Contractor, will be done at the sole expense of the Contractor. 26.2 Changes in Scope of Work. The City or its representative may, at any time, by a written order delivered to the Contractor, make changes to the scope of work, or authorize additional work outside the scope of work. 26.3 Compensation to the Contractor. If any change for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both; 148 8 00878915.DOC b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 26.4 Any claim by the Contractor for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Contractor of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 25.0 of this Agreement. 27.0 LIMITATION OF FUNDS 27.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 27.2 Change orders issued pursuant to Section 26 of this Agreement shall not be considered an authorization to the Contractor to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 27.3 Nothing in this Section shall affect the right of the City under Section 17 to terminate this Agreement. 28.0 PRIOR WORK For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 29.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall be sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward Contractor Attn: Harbormaster Mac Swain Associates, LLC P.O. Box 167 4401 Business Park Blvd, Suite 22 Seward, Alaska 99664-0167 Anchorage, AK 99503 149 9 00878915.DOC IN WITNESS WHEREOF, the parties have executed this agreement: CITY OF SEWARD CONTRACTOR BY: Scott Meszaros BY: Steve MacSwain Title: City Manager Title: Owner Date: Date: Attest: Brenda Ballou, City Clerk City Seal 150 10 00878915.DOC