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HomeMy WebLinkAboutLidgard and Assoc. - 2015-06-04Name of Contractor: Lidgard & Assoc. Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake —Huntington Central Park Real Estate Appraisal Services Amount of Contract: $16,750 Copy of contract distributed to: The original insurance certificate/waiver distributed to Risk Management Initiating Dept. Finance Dept. ❑ ORIGINAL bonds sent to Treasurer ❑ Sandie Frakes, ext 5249 Name/Extension City Attorney's Office Date: 6/5/15 1 y � y co ri'm.w a-5 co f G:AttyMisc/Contract Forms/City Clerk Transmittal PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND LIDGARD AND ASSOCIATES, INC FOR REAL ESTATE APPRAISAL SERVICES THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and LIDGARD AND ASSOCIATES, INC., a CALIFORNIA CORPORATION hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to appraise the Waterfront Hyatt Regency, 21500 PCH; Waterfront Hilton Hotel, 21100 PCH; and Parcel C; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates SCOTT LIDGARD who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. agree/surfnet/professional svcs to $49 10/12 1 of 11 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on �� 101` , 20 (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than 6-8 WEEKS from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed sixteen thousand seven hundred and fifty Dollars ($16,750). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such agree/surfnet/profess ion al svcs to $49 10/12 2of11 work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are agree/surfnet/professional sves to $49 10/12 3 of 11 applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above -mentioned insurance shall not contain a self -insured retention without the express written consent of CITY; however an insurance policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims -made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to agree/surfnet/professional svcs to $49 10/12 4 of 11 forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. agree/surfnet/professional sves to $49 10/12 5 of 11 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. agree/surfnet/professional sves to $49 10/12 6of11 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail -return receipt requested: TO CITY: City of Huntington Beach ATTN: Kellee Fritzal 2000 Main Street Huntington Beach, CA 92648 agree/surfnet/professional svcs to $49 10/12 7 of 11 TO CONSULTANT: Scott Lidgard, MAI, CCIM President Lidgard and Assoicates 2592 N. Santiago Blvd Orange, CA 92867 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as agree/surfnet/professional sves to $49 10/12 8of11 to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. agree/surfnet/professional sves to $49 10/12 9 of 11 24. ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this agree/surfnet/professional sves to $49 10/12 10of11 Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, Lidgard and Associates COMPANY NAME :'e.d-T-r A • L i.P"g O print name ITS: (circle one) Chairman/ �resi�denice Pres t print name ITS: (circle one) Secretary/ChiefF`i a=4-� I sst. Secretary — Treasurer agree/surfnet/professional svcs to $49 10/12 11 of 11 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of ,-, A e +i- A- r- Director/Chief (Pursuant To HBMC §3.03.100) A'PROVED AS TO FORM: nl) - � ), " L-;�U V, l l 4a- City lWorney y- t s P Date' f� EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) Provide appraisal services for Waterfront Hyatt Regency, 21500 PCH; Waterfront Hilton Hotel, 21100 PCH; and Parcel C. LIdgard and Associates, Inc. will provide two (2) narrative appraisal reports - one (1) for Hyatt Regency and one (1) for Hilton and Parcel C. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: Provide appaisals for Waterfront Hyatt Regency, Waterfront Hilton Hotel and Parcel C. C. CITY'S DUTIES AND RESPONSIBILITIES: Provide the needed documentation for consultant to preform appraisal responsibilities D. WORK PROGRAM/PROJECT SCHEDULE: The project schedule will be completed within 8-12 weeks after commencement date. EXHIBIT B Lump sum of $16,750. EXHIBIT A EXHIBIT "B„ Payment Schedule (Fixed Fee Payment) 1. CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. 2. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 3. CONSULTANT shall submit to CITY an invoice for each monthly progress payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 4. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. Exhibit B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND LIDGARD AND ASSOICATES FOR REAL ESTATE APPRAISAL SERVICES Table of Contents Scopeof Services.....................................................................................................I CityStaff Assistance................................................................................................2 Term; Time of Performance.....................................................................................2 Compensation..........................................................................................................2 ExtraWork...............................................................................................................2 Methodof Payment..................................................................................................3 Disposition of Plans, Estimates and Other Documents...........................................3 HoldHarmless.........................................................................................................3 Professional Liability Insurance.............................................................................4 Certificate of Insurance............................................................................................5 Independent Contractor............................................................................................6 Termination of Agreement.......................................................................................6 Assignment and Delegation......................................................................................6 Copyrights/Patents...................................................................................................7 City Employees and Officials..................................................................................7 Notices.........................................................................................7 Consent....................................................................................................................8 Modification............................................................................................................. 8 SectionHeadings.....................................................................................................8 Interpretation of this Agreement..............................................................................8 DuplicateOriginal....................................................................................................9 Immigration...............................................................................................................9 Legal Services Subcontracting Prohibited................................................................9 Attorney's Fees..........................................................................................................10 Survival.....................................................................................................................10 GoverningLaw.........................................................................................................10 Signatories.................................................................................................................10 Entirety......................................................................................................................10 EffectiveDate................................................................................. l 1 May 11, 2015 Kellee Fritzal Deputy Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Subject: Leased Fee Interest Analyses Waterfront Hotel Properties Waterfront Hilton Hotel, Hyatt Regency Resort Hotel, Long Beach Office: Hyatt Regence Resort/Spa, and 3353 LindenAvenue Development Parcel C Suite 200 \ Huntington Beach, California Long Beach, CA 90807 - 4503 Dear Ms. Fritzal, I appreciate the opportunity of discussing with you the possibility of rendering our services in connection with the valuation studies of the Orange County 2592 N. Santiag above -referenced properties. Orange, CA 92867 - 7862 The scope of our services will include (1) an inspection of the subject leasehold properties, (2) a review of current and historical income/ - expense information pertaining to the operation of the subject developments, (3) a review of the master ground lease agreement and Telephone: subsequent addendums encumbering the subject properties, (4) a (562) 988-2926 review public records, (5) the research and collection of comparable (714) 633-8441 market data in the immediate and general subject market area, (6) a Facsimile: valuation employing applicable methodology based on an analysis of the (714) 633-8449 comparable market data, and (7) preparation of two separate formal narrative appraisal reports in summation of the activities outlined above. t It is understood that the subject properties are encumbered with long term ground leases. The term of the Hyatt Regency leasehold expires in 2102. The ground leases pertaining to the Waterfront Hilton and Development Parcel C are scheduled to terminate in 2114 in the event the lessee commences construction on the proposed addition to the Hilton Hotel by December 31, 2016. In the event construction does not commence and an extension is not negotiated, the ground lease for the Waterfront Hilton expires in 2089 and the leasehold of Parcel C terminates. Future development of Development Parcel C will require the replacement of 150 automobile parking spaces. LUDGARD AND ASSOCIATES 4 E. # ? iris` fd Comvatlt4 nx Kellee Fritzal Deputy Director of Economic Development City of Huntington Beach May 11, 2015 Page 2 The purpose of the appraisal studies is the estimation of market value of the unencumbered fee simple interest in the two individual subject properties, as well as to provide an allocation of value of the lessor's leased fee interest. The property rights will be appraised as of a current date. Further, the services will include attendance at one meeting and one City Council presentation, if deemed necessary. Leased fee interest is defined in The Appraisal of Real Estate, sponsored by t Appraisal Institute, 13th Edition, Page 114, as: "The ownership interest, held by the lessor, which includes the right to contract rent specified in the lease plus the reversionary right when the lease expires. " A leased fee interest is the lessor's, or landlord's interest. A landlord holds specified rights that include the right of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee (leaseholder) are specified by contract terms contained within the lease. " Market value, as defined in Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), is defined as follows: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby.- >. Buyer and seller are typically motivated- 2 Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5 The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. " The intended use of the reports is to assist in asset valuation in connection" with negotiations between the Successor Agency and the State of California r Department of Finance. Intended users are City officials and consultants thereof for the explicit purpose and intent indicated above. The reports are not intended to be delivered to, or relied upon by, third parties. LEDGARD AND ASSOCIATES Kellee Fritzal Deputy Director of Economic Development City of Huntington Beach May 11,2015 Page 3 The appraisal reports will comply with reporting requirements set ,forth in the Uniform Standards of Professional Appraisal Practice (U,SPAP), unde-r,-Standard Rule 2-2(a). The reports will contain a moderate level of detail with respect to the market data, appraisal methodology, and reasoning supporting the analyses, opinions, and conclusions. They will contain sufficient information fo\\the purpose, intent, client, and intended users for which they are written. Based on the amount of time estimated to complete the appraisal studies, and formal narrative appraisal reports, the fee for our services will be in the total amount of $16,750, payable upon delivery of the reports. The appraisal reports can be delivered, in triplicate, as well as electronically transmitted via email, within approximately six weeks following receipt of your authorization to proceed. As stated, the appraisal services will include attendance at one meeting and one City Council presentation, if deemed necessary. If you are in agreement with the above terms, please sign and date a copy of this letter -agreement, and return to our office along with the retainer. Please do not hesitate to contact me in the event you have any questions regarding this proposal. Very truly yours, Scott A. Lidgard, MAI, CCIM Certified General Real Estate Appraiser California Certification No. AG 004014 SAL:sp I hereby authorize the firm of LIDGARD AND ASSOCIATES, INC. to perform appraisal services referred to above. Kellee Fritzal Date LEDGARD AND SOC S Wxrrd r x�a? %.W mid G 1 ray Bazant, Denise From: Fritzal, Kellee Sent: Tuesday, May 26, 2015 7:23 AM To: Bazant, Denise Subject: FW: Hilton/Hyatt Appraisal Services From: Fritzal, Kellee Sent: Monday, May 25, 2015 5:38 PM To: Farrell, Lori Ann; Slobojan, Jim Subject: Hilton/Hyatt Appraisal Services AS you are aware, we have gone through the process and had a contract with M & R Evaluation Services (HVS) for $47,500. However, due to concerns raised, I have gone back out to bid and received letter responses from Lidgard and Lea Associates. M & R Appraisal - $47,500 Lidgard & Associates - $16,750 Lea Associates - $14,300 Nagasaki and Associates and Overland Pacific and Cutler declined to bid on the project (again) and PKF Consulting/CBRE was conflicted out due to the fact they did the appraisal for the current leasee. Based upon review of references — we are recommending a contract with Scott Lidgard. A new contract is being created. If you have any questions, do not hesitate to call or email. 1 A�- V C TIFI TF F LIB ILITY I SU D /DD/YYYY, 5/28/28/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Commercial Management Insurance Services Inc. CA License OD85858 22875 Safi Ranch Pkwy, Suite K �Yorba Linda CA 92867 CONTACT y NAME: Ph llis Wilcox PHONE (714) 414-1167 FCC No: (714)414-1195 E-MAIL Wi1cox@CIR.ls-ins. COm INSURE S AFFORDING COVERAGE NAIC# INSURERANational Fire Insurance of 20478 INSURED Lidgard & Associates Inc. 2592 N Santiago Blvd Orange CA 92867 INSURERB:Continental Casualty Company 0443 INSURER C:Amerlcan Cas. Co of Reading PA 20427 INSURERD: INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER:15-16 MASTER REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDLSUBR POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED PREMISES Ea occurrence $ 300 000 MED EXP (Any one person) $ 10,000 A CLAIMS -MADE OCCUR X 4022998395 /4/2015 /4/2016 PERSONAL &ADV INJURY $ 2,000,000 GENERAL AGGREGATE $ 4,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 4,000,000 $ X POLICY PRO JFrT LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident 1 , 00 $ 1 BODILY INJURY (Per person) A X ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS NON -OWNED HIRED AUTOS AUTOS X 4022998431 /4/2015 /4/2016 $ $ $ BODILY INJURY (Per accident) PROPERTY DAMAGE Per accident Uninsured motorist BI split limit $ X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 3,0( AGGREGATE B EXCESS LIAB CLAIMS -MADE $ 3,0( DED I X I RETENTION$ 10,OOC B4022998526 /4/2015 /4/2016 $ C WORKERS COMPENSATION X WC LIMIT FR AND EMPLOYERS' LIABILITY YIN ANY PROPRIETOR/PARTNER/EXECUTIVE $ E.L. EACH ACCIDENT E.L. DISEASE - JA EMPLOYEE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) N / A 422998476 /4/2015 /4/2016 $ 1 C fEQhh9tF'AOLICY LIMIT If yes, describe under DESCRIPTION OF OPERATIONS below kf=n I $ 1 Ouv, v { t DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more Lpacvis required) THE CITY OF HUNTINGTON BEACH, ITS OFFICERS, ELECTED OR APPOINTED OFEICZAZA,ES, AGENTS AND VOLUNTEERS ARE NAMED AS ADDITIONAL INSURED WHEN REQUIRED BY WRITIGRk WITH RESPECTS TO GENERAL LIABILITY AS PER THE ATTACHED SB-30013—C 0611 AND AS RESPECTS TO AUTOMOBILE LIABILTIY AS PER THE ATTACHED CA 20 48 02 99. GENERAL LIABILTIY INSURANCE IS PRIMARY AND NON—CONTRIBUTORY AS PER THE ATTACHED SB-146935—C 06 11. 30 DAY NOTICE OF CANCELLATION EXCEPT 10 DAYS FOR NON—PAYMENT OF PREMIUM. RE PROJECT: VALUATION OF LEASED FEE INTEREST IN WATERFRONT HOTEL PROPERTIES. CONTACT KALLEE FRITZAL, DEPUTY DIRECTOR OF ECONOMIC DEVELOPMENT. CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2010/05) INS025 rgninnsi ni Wakely/PHYLL V TSt9S-ZU7U AUUKL) L UKt'UKA I IUN. All ngnis reserveo. Tho Aftr Pn nmm� nnel Inn^ nra ronic4or=r1 mnrirc ^f Artr Prl POLICY NUMBER: 84022999431 1 This endorsement mollies insurance provided under the following: BUSINESS AUM COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM COMMERCIAL AUTO CA 20 48 02 99 With respect to coverage provided by ttus endorsement, the provisions of the Coverage Form apply unless modified by this endorserne t. This endorsement identgies person(s) or organizations) who are winsurede under the Who Is An Insured Provision of the Coverage Forrrn. This endorsement does not alter coverage provided in the Coverage Form. This endorsement changes the policy eifedive on the inception date of the policy unless another date is indicated below. Endorsement Effective: 03-04-15 Countersi n Named Insured: LIDGARD & ASSOCIATES Authorized ReRmentative SCHEDULE Name of Person(s) or Organizadon(s): LOS ANGELES UNIFIED SCHOOL DISTRICT AND THE BOARD OF EDUCATION FOR THE CITY OF LOS ANGELES CITY OF HIGHLAND SAN BERNADINO COUNTY FLOOD CONTROL DISTRICT CITY OF GARDEN GROVE Garden Grove Agency for Commnunity Development AMCAL GENERAL CONTRACTORS, INC. AmcAL MULTI-HousiNG TWO, LLC AMCAL ENTERPRISES, INC. AMCAL OCEANA FUND, L.P. CITY OF INGLEWOOD CITY OF IRVINE The State of California City of Huntington Beach (if no entry appears above, infommlion required to COmplete Iris encomemem wrtu ou snown in - Waiamiauwua aw applicable to the endomerneit) Each person or organization shown in the Schedule is an °insured° for liability Coverage, but only to the extent that person or organization qual fies as an insured' under the Who Is An Insured Provision contained in Section R of the Coverage Form. CA 20 48 02 99 Copyright, Insurance SeMCes Of6roe, Inc., 1998 Page 9 of 1 Phyllis Wilcox From: sbi=r@cna.com Sent: Thursday. April 09. 201510:35 AM To: Phyllis Wilcox Subject: ADDITIONAL INSURED ENDORSEL ENTS Dear Phyllis, Thank you for your business from the Small Business Service Center. As per our phone conversation earlier today, please note that CNA will only add legal entities with contractual agreements with our insured as Additional Insured on the policy. This excludes wording such as "their officers, agents, employees, etc." If you have any additional questions or concerns please contact the CNA Small Business Service Center during the hours of 8:00 AM - 8:90 P&i EST Monday through Friday. Thanks again, Giovanni Barrio CHA Small Business Service Center 877-724-2669 Phone 877-763-5122 Fax Sbiccsr*cna.com Sent from CNA Insurance Processing System NOTICE: This e-mail message, including any attachments and appended messages, is for the sole use of the intended recipients and may contain confidential and legally privileged information. If you are not the intended recipient, any review, dissemination, distribution, copying, storage or other use of all or any portion of this message is strictly prohibited. If you received this message in error, please immediately notify the sender by reply e-mail and delete this message in its entirety. 1 SB-300113-C (Ed. 06/11) Policy Number. 84022998395 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS LIABILITY COVERAGE FORM SCHEDULE Name Of Person Or Organization: City of Huntington Beach ° information required to complete this Scheddie, if not shown on this endorsement, will be shown in the Declarations. The following is added to Paragraph C. Who Is An Insured: 4. Any person or organization shown in the Schedule is also an insured, but only with respect to "bodily injury," or °property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf in the performance of your ongoing operations or in connection with your premises owned by or rented to you. SB-300113-C Includes copyrighted material or Inwrance services office. Inc., with its pemd5sion. Page 1 of 1 (Ed. 06111) Copyright, Ir> mmee Services Office, Inc. 2002 SB-146935-C (Ed. 06/11) Policy Number: 84022998395 THIS ENDORSEMENI' CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS LIABILITY COVERAGE FORM A. Paragraph C. WHO IS AN iNSURED is amended to C. The insurance provided to the additional insured does include as an additional insured: not apply to "bodily injury," "property damage; or 1. Any person or organization whom you are "personal and advertising injury" arising out of: required by written contract to add as an additional a. The rendering of, or the failure to render, any insured on the Businessowners Liability Coverage professional architectural, engineering, or Form. surveying services, including: B. The insurance provided to the additional insured is limited as follows: 1. The person or organization is an additional insured only with respect to liability for "bodily injury.' "property damage," or "personal and advertising injury" caused in whole or in part by: a. Your acts or omissions; or b. The acts or omissions of those acting on your behalf in the performance of your ongoing operations specified in the written contract; or c. "Your work" that is specified in the written contract but only for "bodily injury" or "property damage" included in the products completed operations hazard, and only if : (1) The written contract requires you to provide the additional insured such coverage; and (2) This Coverage Form provides such coverage. 2. We will not provide the additional insured any broader coverage or any higher limit of insurance than the least that is: a. Required by the written contract; b. Described in B.I. above; or c. Afforded to you under this policy. 3. This insurance is excess of all other insurance available to the additional insured, whether on a primary, excess, contingent or any other basis. But if required by the written contract, this insurance will be primary and non-contributory relative to insurance on which the additional insured is a Named Insured. SB-146935-C (Ed. 06111) (1) The preparing approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; and (2) Supervisory, inspection, architectural or engineering activities. b. "Bodily Injury," "property damage," or "personal and advertising injury" arising out of any premises or work for which the additional insured is specifically listed as an additional insured on another endorsement attached to this Policy. D. Section E. of the Businessowners General Liability Conditions is amended as follows: The Duties in the Event of Occurrence, Offense, Claim or Suit condition is amended to add the following additional conditions applicable to the additional insured: An additional insured under this endorsement will as soon as practicable: a. Give us written notice of an "occurrence" or an offense which may result in a claim or "suit' under this insurance, and of any claim or "suit" that does result* b. Tender the defense and indemnity of any claim or "suit" to any other insurer or self insurer whose policy or program applies to all toss we cover under this Policy; c. Except as provided in Paragraph B.3. of this endorsement, agree to make available any other insurance the additional insured has for a loss we cover under this Policy; and d. Send us copies of all legal papers received, and otherwise cooperate with us in the investigation, defense, or settlement of the claim or "suit." We have no duty to defend or indemnify an additional insured under this endorsement unfit we Page 1 of 3 receive from the additional insured written notice of a claim or "suit" E. With respect only to the insurance provided by this endorsement, the first sentence of Paragraph H.I. Other Insurance Condition in the Businessowners Common Policy Conditions, is deleted and replaced with the following: Other Insurance 1. This insurance is primary and non-contributory except when rendered excess by this endorsement, or when Paragraph 2. below applies. F. The provisions of the written contract or written agreement do not in any way broaden or amend this Policy. G. Blanket Waiver of Subrogation We waive any right of recovery we may have against: 1. Any person or organization with whom you have a written contract that requires such a waiver. H. Broad Knowledge of Occurrence The following items are added to E. Businessowners General Liability Conditions in the Businessowners Liability Coverage Form: e. Paragraphs a. and b. apply to you or to any additional insured only when such 'occurrence,* offense, claim or "suit` is known to: 1. You or any additional insured that is an individual; (2) Any partner, if you or an additional insured is a partnership; (3) Any manager, if you or an additional insured is a limited liability company; (4) Any "executive officer" or insurance manager, if you or an additional insured is a corporation; (5) Any trustee, if you or an additional insured is a trust; or (6) Any elected or appointed official, if you or an additional insured is a political - subdivision or public entity. This paragraph e. applies separately to you and any additional insured. 1. Bodily Injury Section F. Liability and Medical Expenses Definitions, item 3. "Bodily injury" is deleted and replaced with the following: "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death. humiliation, shock, mental anguish or mental injury by SB-146935-C (Ed. 06111) SB-146935-C (Ed. 06/11) that person at any time which results as a consequence of the bodily injury, sickness or disease. J. Expanded Personal and Advertising Injury Definition A. The following is added to Section F. Liability and Medical Expenses Definitions, item 14. Personal and Advertising Injury, in the Businessowners General Liability Coverage Form: h. Discrimination or humiliation that results in injury to the feelings or reputation of a natural person, but only if such discrimination or humiliation is: 1. Not done intentionally by or at the direction of: a. The insured; or b. Any "executive officer," director, stockholder, partner, member or manager (if you are a limited liability company) of the insured; and 2. Not directly or indirectly related to the employment, prospective employment, past employment or termination of employment of any person or person by any insured. B. The following is added to Exclusions, Section B.: (15)Discrimination Relating to Room, Dwelling or Premises Caused by discrimination directly or indirectly related to the sale, rental, lease or sub -lease or prospective sole, rental, lease or sub -lease of any room, dwelling or premises by or at the direction of any insured. (16) Fines or Penalties Fines or penalties levied or imposed by a governmental entity because of discrimination. C. This provision (Expanded Personal and Advertising Injury) does not apply if Personal and Advertising Injury Liability is excluded either by the provisions of the Policy or by endorsement. D. Personal and Advertising Injury Re -defined Section F. Liability and Medical Expenses Definitions, item 14, Personal Advertising Injury, Paragraph c. is replaced by the following: c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room dwelling or premises that a person or organization occupies Page 2 of 3 SB-146935-C CNA (Ed. 06111) committed by or on behalf of its owner, landlord or lessor. SB-146935-C Page 3 of 3 (Ed. 06111) CERTIFICATE OF INSURANCE Producer. Issue Date: 05/28/2015 This Certificate is issued as a matter of information only and LIA ADMINISTRATORS & INSURANCE SERVICES confers no rights upon the Certificate Holder. This Certificate P.O. Box 1319 does not amend, extend or alter the coverage afforded by the Santa Barbara, CA 93102-1319 policy below. Insured: 152163 COMPANY AFFORDING COVERAGE LIDGARD AND ASSOCIATES, INC. 2592 North Santiago Blvd. Aspen American Insurance Company Orange, CA 92867 Fax Number: 714-633-8449 Authorized Representative This is to certify that the policy of insurance listed below has been issued to the Insured named above for the policy period indicated. Notwithstanding any requirement, term of condition of any contract or other document with respect to which this Certificate may be issued or may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions and conditions of such policy. Limits shown may have been reduced by paid claims. DISCLAIMER: This certificate of insurance does not affirmatively or negatively amend, extend, or alter the coverage afforded by the insurance policy. TYPE OF INSURANCE POLICY NUMBER EFFECTIVE DATE EXPIRATION DATE LIMITS Professional Liabilitv AA1000036-01 04/02/2015 04/02/2016 Each Claim $ 100,000 General Aggregate $ 2,000,000 Description of Operations/Locations/Special Items: REAL ESTATE APPRAISERS PROFESSIONAL LIABILITY INSURANCE Certificate Holder: Cancellation: City of Huntington Beach SHOULD ANY OF THE ABOVE DESCRIBED POLICIES Attention: Economic Development Department BE CANCELLED BEFORE THE EXPIRATION DATE 2000 Main Street THEREOF, NOTICE WILL BE DELIVERED IN Huntington Beach, CA 92648 ACCORDANCE WITH THE POLICY PROVISIONS. LIA0001 (11/97) r J r ° Y CITY OF HUNTINGT®N BEACH .- Professional Service Approval Form RECEIVED PART I APR 2 8 2015 Date: 4/28/2015 Project Manager Name: Kellee Fritzal Finance Depa iment Requested by Name if different from Project Manager: Department: Economic Development PARTS I OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED BY THE CITY MANAGER, FOR APPROVAL, BEFORE PROCEEDING WITH THE SOLICITATION OR CONTRACT PROCESS. PART I MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Briefly provide the purpose for the agreement: Provide real estate appraisal services for the Waterfront Hyatt Regency, 21500 PCH; Waterfront Hilton, Hotel, 21100 PCH; and Parcel C 2) Estimated cost of the services being sought: $ 27,500 -. 3) Are sufficient funds available to fund this contract? ® Yes ❑ No If no, please explain: 4) Check below how the services will be obtained: ❑ A Bid solicitation process in accordance to the MC 3.03.060 procedures will be conducted. ❑ MC 3.03.08(b) — Other Interagency Agreement procedure will be utilized. ® MC 3.03.08 — Contract Limits of $30,000 or less exempt procedure will be utilized. 5) Is this contract generally described on the list of professional service contracts approved by the City Council? If the e to this qye ion is "No," the contract will require approval from the City Council.) -ZIYs ❑ No Fiscal S Signature (Purchasing Approval) 6) Amount, Business UnA (8 digits) and Object Code (5 digits) where funds are budgeted (Please note that a budget check will occur at the object code level): Date Account number Contractual Dollar Amount Business unit. object # Fiscal Year 2104A 5 +. Fiscal Year Fiscal Year 10080101.69365 $27,500.00 $ $ $ $ $ $ $ $ et Approval ature(s) Signature Assistant City Manager's Signature APPROVED DENI nager's Signature ate Date �� / S� ate Date Date appraisal contract - part i.doc REV: February 2015 CITY OF HUNTINGTON BEACH Professional Service Approval Form 2.11:A& Date: 4/28/2015 Project Manager: Kellee Fritzal Requested by Name if different from Project Manager: Department: Economic Development RECEIVED APR 28 2015 Finance Depaftment PARTS I & II OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED FOR APPROVAL. PART I & H MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Name of consultant: A4-&rR `VaitrarrcrrseTviL 2) Contract Number: ECD (Contract numbers are obtained through Finance Administration x 5630) 3) Amount of this contract: $2�@0 16, 75-0 V _ Account number Contractual Dollar Amount Business unit. object # Fiscal Year 2014/15 Fiscal Year Fiscal Year 10080101.69365 $27-580 /G� -7 0 $ $ $ $ $ 4) Is this contract less than $50,000? ® Yes ❑ No 5) Does this contract fall within $50,000 and $100,000? ❑ Yes ® No 6) Is this contract over $100,000? ❑ Yes ® No (Note: Contracts requiring City Council Approval need to be signed by the Mayor and City Clerk. Make sure the appropriate signature page is attached to the contract.) 7) Were formal written proposals requested from at least three available qualified consultants? ❑ Yes ® No 8) Attach a list of consultants from whom proposals were requested (including a contact telephone number.) 9), Attach Exhibit A, which describes the proposed scope of work. 10) Attach ambit B, whicWescribes the payment terms of the contract. Fiscal er (Purchasing) \1 I Y_V__C \_ V - Budget anager Ap royal Signature 7z7. 0AA11V Dir for of Finance (or designee) Signature Date Date Date 11 appraisal contract - part ii.doc REV: February 2015