HomeMy WebLinkAboutVan Horn Consulting - 2011-03-22Warne of Contractors Amendment No. 1 to Van Horn Consulting
Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake —Huntington Central Park
Assessment for AES Property Tax Valuation
Amount of Contract: $45,000
Copy of contract distributed to: The original insurance certificate/waiver distributed
❑
Initiating Dept. ❑ to Risk Management
Finance Dept. ❑ ORIGINAL bonds sent to Treasurer ❑
Date: l ?�
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City Attorney's Office
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G:AttyMisc/Contract Forms/City Clerk Transmittal
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES CONTRACT
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH AND VAN HORN CONSULTING FOR
ASSESSMENT ON AES PROPERTY TAX VALUATION
THIS AMENDMENT NO. 1 is made and entered into the %S & day of
,Y;-*re- , 2011, by and between the REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH, a public body of the State of California, hereinafter referred to as
"Agency," and VAN HORN CONSULTING, hereinafter referred to as "Consultant."
WHEREAS, Agency and Consultant are parties to that certain agreement, dated March
21, 2011, entitled "Professional Services Contract Between the Redevelopment Agency of the
City of Huntington Beach and Van Horn Consulting for Assessment of AES Property Tax
Valuation," which agreement shall hereinafter be referred to as the "Original Agreement," and
Since the execution of the Original Agreement, Agency has requested additional work
from Consultant and Consultant has agreed to perform such work; and
Agency and Consultant wish to amend the Original Agreement to reflect the additional
work to be performed by Consultant, and the additional compensation to be paid in consideration
thereof,
NOW, THEREFORE, it is agreed by Agency and Consultant as follows:
1. ADDITIONAL WORK
Consultant shall provide to Agency such additional services as required by
Agency in the attached Exhibit "A," and incorporated by this reference as though fully set forth
herein.
2. ADDITIONAL COMPENSATION
In consideration of the additional services to be performed hereunder as described
in Exhibit "A," Agency agrees to pay Consultant an additional sum not to exceed Twenty
Thousand Dollars ($20,000.00). This additional sum shall be added to the Original Agreement
sum of Twenty -Five Thousand Dollars ($25,000.00) for a new total amount not to exceed Forty -
Five Thousand Dollars ($45,000.00).
06-144.001/65938 Page 1 of 2
3. REAFFIRMATION
Except as specifically modified herein, all other terms and conditions of the
Original Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized offices the day, month and year first above written.
VAN HORN CONSULTING
By:
print name
ITS: (circle one) t
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AND
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print name
ITS: (circle one) Secretary/Chief Financial
Officer/Asst. Secretary - Treasurer
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a public
body of the State of California
Deputy Ex Director
APPROVED AS TO FORM:
4Z, ell
Agency Counsel , -41 i
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06-144.001/65938 Page 2 of 2
EXHIBIT "A"
A. STATEMENT OF WORK:
There are a number of tasks that should be conducted in order to properly determine the fair
market value of the AES Huntington Beach Generating Station. This proposal describes three
initial tasks, focusing on a review of the methods and assumptions underlying the property tax
assessments conducted in 2010 before the California State Board of Equalization.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES:
Task 1: Preliminary. Review of Methods Data and Assumptions Supporting the 2010 Property
Tax Assessment of the AES Huntington Beach Generation Station
In this limited task, VHC would conduct a review of the methods, key assumptions and available
data and documents that supported the BOE's 2010 assessment of the fair market value of the
Huntington Beach power generation facility owned by AES Huntington Beach, L.L.C., as of
January 1, 2010. Depending on the availability of information, we will review critical
components and assumptions in the context of the market circumstances and conditions
prevailing as of January 1, 2010 and January 1, 2011.
This brief review would encompass both the "income approach" and the "replacement cost new
less depreciation approach," focusing on the appropriateness of the technical and market factor
assumptions that might have been considered for the Board's assessment. The focus will be on
the cash flow "income approach" analysis. Key assumptions to be considered for their
reasonableness and self -consistency will include forecasted natural gas and electricity prices (for
capacity, energy and Ancillary Services) over a 10 or 20-year period, generating unit heat rates,
capacity factors, and operating costs for the generating units, discount rate, publicly available
information regarding AES Tolling Agreements, and some of the factors affecting the facilities'
depreciation, physical deterioration, functional obsolescence and external obsolescence.
Additionally, we will consider the costs for site remediation and the salvage value of the plant.
We will also review VHC's 2006 assessment report and calculations, the Poseidon agreement,
and other data and updated land values in the.vicinity of the power plant to be supplied by the
City.
It should be noted that the assessment of property values for future years will depend on
assumptions and market factors that will change from year to year, affecting the accuracy and
internal consistency of the valuation.
VHC's proposed level of effort for this initial task is about 30 hours for a professional fee of
$10,000. The deliverable from this task would be a brief memo recommending further work, as
described in the following tasks, or recommending that the City wait until next year before
developing its independent, updated valuation.
Task 2: Estimate The Fair Market Value Of The Power Plant.
Based on available data, including BOE's 2010 and 2011 valuations (if 2011 is available), other
public data sources and reports, and our expert judgments regarding critical assumptions and
future market conditions, VHC will estimate the Fair Market value of the AES Huntington Beach
power plant. Our findings will be summarized in a PowerPoint presentation and accompanied by
a spreadsheet calculation of the plant's value. These materials will be suitable for BOE staff
review.
The proposed level of effort for this task is about 100 hours for an estimated professional fee of
$35,000.
Task 3: Summarize and Present VHC's Preliminary Findings
We will prepare a summary briefing highlighting our findings in Tasks 1 and 2. We will discuss
our findings and meet with you to answer questions at the City's offices in Huntington Beach.
We are also willing to meet with AES or BOE personnel to discuss our findings.
The work proposed in Tasks 1 to 3 above would be carried out on a schedule to be mutually
agreed upon, commencing three days to two weeks from receipt of your approval. The work will
be performed under Andrew Van Horn's direction. After project initiation, Edward Remedios,
Ph.D, and Andy will perform Task 1 to determine whether or not to recommend proceeding with
Task 2. Given the timing of BOE's expected March 2011 valuation, it would be desirable to
begin Task 1 this month.
C. CITY'S DUTIES AND RESPONSIBILITIES:
Provide consultant will all available information to conduct research. (i.e. land values, permit
application, potential agreements, or any other related documents).
D. WORK PROGRAMIPROJECT SCHEDULE:
VHC's proposed level of effort for.this initial task is about 30 hours for a professional fee of
$10,000. The deliverable from this task would be a brief memo recommending further work, as
described in the following tasks, or recommending that the City wait until next year before
developing its independent, updated valuation.
2
Professional Service Approval Form
Amendment # 1
1. Date Requested: 5.5.11
2. Contract Number to be Amended: ECD 011-010, -01
3. Department: Economic Development
4. Requested By: Tina Krause
5. Name of Consultant: Van Horn Consulting
6. Amount of Original/Prior Contract: $25,000
7. Additional Compensation Requested: $20,000
8. Original Commencement Date: March 22, 2011
9. Original Termination Date: March 21, 2012
10. Extended Date Requested: none
11. Reason for Contract Amendment:
Additional funds needed for AES plant valuation.
12. Are sufficient funds available to fund this contract?
Yes ® No ❑
13. Business Unit and Object Code where funds are budgeted'.
3058010-1.69365
Department Head S' ature Director of Finance
(or designee) Signature
Name of Contractor: Van Horn Consulting
Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake —Huntington Central Park
Assessment for AES Property Tax Valuation
Amount of Contract: $25,000
Copy of contract distributed to: The original insurance certificate/waiver distributed
Initiating Dept.
to Risk Management ❑
❑
Finance Dept. ❑ ORIGINAL bonds sent to Treasurer ❑
Date:
Nam /Exte Sion
City Attorney's Office
,2122-ld
G:AttyMisc/Contract Forms/City Clerk Transmittal
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PROFESSIONAL SERVICES CONTRACT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
AND Van Horn Consulting
FOR
assessment on AES property tax valuation
Table of Contents
Scopeof Services.....................................................................................................I
Agency Staff 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
Assignmentand Delegation......................................................................................6
Copyrights/Patents...................................................................................................7
Agency 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.................................................................................I
I
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
AND Van Horn Consulting
FOR
assessment for AES property tax valuation
THIS AGREEMENT ("Agreement") is made and entered into by and between the
Redevelopment Agency of the City of Huntington Beach, a public body of the State of
California, hereinafter referred to as "AGENCY, and Van Horn Consulting
a private company hereinafter referred to as "CONSULTANT."
WHEREAS, AGENCY desires to engage the services of a consultant to
provide an assessment for AES property tax valuation ;and
Pursuant to documentation on file in the office of the Agency 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 AGENCY and CONSULTANT as follows:
I. 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 Andrew J. Van Horn who shall
represent it and be its sole contact and agent in all consultations with AGENCY during the
performance of this Agreement.
agree/ surfnet/agency prof Svcs to $49,999
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2. AGENCY STAFF ASSISTANCE
AGENCY shall assign a staff coordinator to work directly with
CONSULTANT in the performance of this Agreement.
3. TERM; TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of CONSULTANT
are to commence on M/C , 20 11 (the "Commencement Date"). This
Agreement shall automatically terminate three (3) years from the Commencement Date,
unless extended or sooner terminated as provided herein. All tasks specified in Exhibit
"A" shall be completed no later than
one (1) year from the
Commencement Date. The time for performance of the tasks identified in Exhibit "A"
are generally to be shown in Exhibit "A." This schedule may be amended to benefit the
PROJECT if mutually agreed to in writing by AGENCY and CONSULTANT
In the event the Commencement Date precedes the Effective Date,
CONSULTANT shall be bound by all terms and conditions as provided herein.
4. COMPENSATION
In consideration of the performance of the services described herein,
AGENCY agrees to pay CONSULTANT on a time and materials basis at the rates
specified in Exhibit "B," which is attached hereto and incorporated by reference into this
Agreement, a fee, including all costs and expenses, not to exceed
twenty-five thousand ---------------------------- Dollars($ 25,000 -----
5. EXTRA WORK
In the event AGENCY requires additional services not included in Exhibit
"A" or changes in the scope of services described in Exhibit "A," CONSULTANT will
undertake such work only after receiving written authorization from AGENCY.
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Additional compensation for such extra work shall be allowed only if the prior written
approval of AGENCY 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 AGENCY, and CONSULTANT shall turn
these materials over to AGENCY upon expiration or termination of this Agreement or
upon PROJECT completion, whichever shall occur first. These materials may be used by
AGENCY as it sees fit.
8. HOLD HARMLESS
CONSULTANT hereby agrees to protect, defend, indemnify and hold
harmless AGENCY, 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 AGENCY. CONSULTANT will conduct all defense at its sole cost and
expense and AGENCY shall approve selection of CONSULTANT's counsel. This
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indemnity shall apply to all claims and liability regardless of whether any insurance
policies are 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 AGENCY 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 AGENCY; 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 AGENCY 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 AGENCY with required proof that
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insurance has been procured and is in force and paid for, the AGENCY shall have the
right, at the AGENCY's election, to forthwith terminate this Agreement. Such termination
shall not effect 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 AGENCY for any work performed prior to approval of insurance
by the AGENCY.
10. CERTIFICATE OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT
shall furnish to AGENCY a certificate of insurance subject to approval of the Agency
Counsel 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 AGENCY.
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. AGENCY or its representative shall at all times have the right
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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.
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 AGENCY.
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. AGENCY 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 AGENCY 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 AGENCY,
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 AGENCY. 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.
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14. COPYRIGHTS/PATENTS
AGENCY shall own all rights to any patent or copyright on any work, item
or material produced as a result of this Agreement.
15. AGENCY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no AGENCY official nor any regular
AGENCY employee in the work performed pursuant to this Agreement. No officer or
employee of AGENCY 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 AGENCY 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. AGENCY and CONSULTANT may designate
different addresses to which subsequent notices, certificates or other communications will
be sent by notifying the other parry via personal delivery, a reputable overnight carrier or
U. S. certified mail -return receipt requested:
TO AGENCY:
Redevelopment Agency of the
City of Huntington Beach
ATTN: Tina Krause - Real Property Svcs
2000 Main Street
Huntington Beach, CA 92648
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TO CONSULTANT:
Van Horn Consulting
Attn: Andrew J, Van Horn
12 Lind Court
orinda, California 94563-3615
17. CONSENT
When AGENCY'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 to require the commission of any act
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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 AGENCY agree that AGENCY 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 Agency
Counsel is the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for
payment of any legal services expenses incurred by CONSULTANT.
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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 AGENCY fully for any injuries or damages to AGENCY
in the event that such authority or power is not, in fact, held by the signatory or is
withdrawn.
CONSULTANT's Initials �
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
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anyone acting on that party's behalf, which are. not embodied in this Agreement, and that
that party has not executed this 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
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by and through their authorized officers. This Agreement shall be effective
on the date of its approval by the Agency Counsel. This Agreement shall expire when
terminated as provided herein.
CONSULTANT,
COMP NY NAME
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V
By:
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ITS: (circle one
AND
By: t
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ITS: (circle one)
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REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a
political body of the State of California
Deputy xecutive Direct
A C+ T/l T'/lTI TI 4.
4 INSURANCE AND INDEMNIFICATION WAIVER
® MODIFICATION REQUEST
1. Requested by: Tina Krause, Economic Development
2. Date: March 1, 2011
3. Name of contractor/permittee: Van Horn Consulting
4. Description of work to be performed: Economic Analysis - Valuation of the AES Power
Plant
5. Value and length of contract: One (1) Year, 2011-2012
6. Waiver/modification request: Professional Liability
7. Reason for request and why it should be granted: See attachment on back, regarding
Professional Liability. Van Horn has indicated that all associated listed in his proposal are
independent contractors, not employees
8. Identify the risks to the City in approving this waiver/modification: No risks are identified
D artment H-e'a4 Signature �1-3 WDt
APPROVALS
Approvals must be obtained in the order listed on this form. Two approvals are required
for a request to be granted. Approval from the City Administrator's Office is only required if
Risk Management and t City Attorney's Office disagree.
1. Risk Management �
Approved ❑ Denied
Signature Date
2. City Attorney's Office
proved El Denied ' �
Signature Date
3. City Administrator's Office
❑ Approved ❑ Denied
Signature Date
If approved, the completed waiver/modification request is to be submitted to the
City Attorney's Office along with the contract for approval. Once the contract has been approved,
LL this form is to be filed with the Risk Management Division of Human Resources
Waiver Form 3/1/2011 4:33:00 PM
ACC> dJR oaTe puMlDDmrv)
CERTIFICATE OF LIABILITY INSURANCE
Oti1s 011
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 poticy(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 endolsernent(s).
PRODUCER STATE FARM INSURANCE,TOM SEPE AGENT _N_aalE_T TOM sEPE_
--I-FJIIC --
346 RHEEM BLVD., STE 106"ah__�?�_01s2
E40JL
MORAGA CA 94556 -
--
MSURt3t(S) AFrflRDING COVERAGE NAIL 0
INSURER A. State Faun Genera! insurance CDmoang._... �2li161_
INSURED ANDREW J VAN HORN IISURERB: 12 LIND CT I-SURERC__--
ORINDA CA 94563-3615 INSURERDr_ _ ----
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COVERAGES CF-RTIFICATF ANIPARFR- REVISION NUI IBM'
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 SHOFMd MAY HAVE BEEN REDUCED BY PAID CLAIMS.
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GENERALLIABILITY
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DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES Wink ACORD I(K. Addition# Remarks Scheftl!C N man space is raauired)
ilk
THE CITY OF HUNTINGTON BEACH
2000 MAIN STREET
HUNTINGTON BEACH CA 92648
ACORD 25 (2010/05)
SHOUW ANY OF THE ABOVE DESCRIBED POLICIES BE CANCEUED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESERTATIVE
- (c3 Y888-2U9
T1UN_ All rinhts reserved.
The ACORD name and logo are registered marks of ACORD 1001486 132849.6 11-15-2010
Policy No.: 978MR8424
SECTION 11 ADDITIONAL INSURED ENDORSEMENT
Policy No.: 97BMR8424
Named Insured: VAN HORN, ANDREW J
Additional Insured (include address):
THE CITY OF HUNTINGTON BEACH, ITS ELECTED OR APPOINTED
OFFICIALS,AGENTS,OFFICERS,EMPLOYEES AND VOLUNTEERS
2000 MAIN STREET
HUNTINGTON BEACH
CA
92648
FE-6609
WHO IS AN INSURED, under SECTION II DESIGNATION OF INSURED, is amended to include as
an insured the Additional Insured shown above, but only to the extent that liability is imposed on that
Additional Insured solely because of your work performed for that Additional Insured shown above.
Any insurance provided to the Additional Insured shall only apply with respect to a claim made or a
suit brought for damages for which you are provided coverage.
The Primary Insurance coverage below applies only when there is an "X" in the box.
❑ Primary Insurance. The insurance provided to the Additional Insured shown above shall be
primary insurance. Any insurance carried by the Additional Insured shall be noncontributory
with respect to coverage provided to you.
All other policy provisions apply.
Printed in U.S A
FE-6609
EXHIBIT "A"
A. STATEMENT OF WORK:
There are a number of tasks that should be conducted in order to properly determine the fair
market value of the AES Huntington Beach Generating Station. This proposal describes three
initial tasks, focusing on a review of the methods and assumptions underlying the property tax
assessments conducted in 2010 before the California State Board of Equalization.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES:
Task 1: Preliminary. Review of Methods, Data and Assumptions Supporting the 2010 Property
Tax Assessment of the AES Huntington Beach Generation Station
In this limited task, VHC would conduct a review of the methods, key assumptions and available
data and documents that supported the BOE's 2010 assessment of the fair market value of the
Huntington Beach power generation facility owned by AES Huntington Beach, L.L.C., as of
January 1, 2010. Depending on the availability of information, we will review critical
components and assumptions in the context of the market circumstances and conditions
prevailing as of January 1, 2010 and January 1, 2011.
This brief review would encompass both the "income approach" and the "replacement cost new
less depreciation approach," focusing on the appropriateness of the technical and market factor
assumptions that might have been considered for the Board's assessment. The focus will be on
the cash flow "income approach" analysis. Key assumptions to be considered for their
reasonableness and self -consistency will include forecasted natural gas and electricity prices (for
capacity, energy and Ancillary Services) over a 10 or 20-year period, generating unit heat rates,
capacity factors, and operating costs for the generating units, discount rate, publicly available
information regarding AES Tolling Agreements, and some of the factors affecting the facilities'
depreciation, physical deterioration, functional obsolescence and external obsolescence.
Additionally, we will consider the costs for site remediation and the salvage value of the plant.
We will also review VHC's 2006 assessment report and calculations, the Poseidon agreement,
and other data and updated land values in the vicinity of the power plant to be supplied by the
City.
It should be noted that the assessment of property values for future years will depend on
assumptions and market factors that will change from year to year, affecting the accuracy and
internal consistency of the valuation.
VHC's proposed level of effort for this initial task is about 30 hours for a professional fee of
$10,000. The deliverable from this task would be a brief memo recommending further work, as
described in the following tasks, or recommending that the City wait until next year before
developing its independent, updated valuation.
Task 2: Estimate The Fair Market Value Of The Power Plant.
Based on available data, including BOE's 2010 and 2011 valuations (if 2011 is available), other
public data sources and reports, and our expert judgments regarding critical assumptions and
future market conditions, VHC will estimate the Fair Market value of the AES Huntington Beach
power plant. Our findings will be summarized in a PowerPoint presentation and accompanied by
a spreadsheet calculation of the plant's value. These materials will be suitable for BOE staff
review.
The proposed level of effort for this task is about 100 hours for an estimated professional fee of
$35,000.
Task 3: Summarize and Present VHC's Preliminary Findings
We will prepare a summary briefing highlighting our findings in Tasks 1 and 2. We will discuss
our findings and meet with you to answer questions at the City's offices in Huntington Beach.
We are also willing to meet with AES or BOE personnel to discuss our findings.
The work proposed in Tasks 1 to 3 above would be carried out on a schedule to be mutually
agreed upon, commencing three days to two weeks from receipt of your approval. The work will
be performed under Andrew Van Horn's direction. After project initiation, Edward Remedios,
Ph.D, and Andy will perform Task 1 to determine whether or not to recommend proceeding with
Task 2. Given the timing of BOE's expected March 2011 valuation, it would be desirable to
begin Task 1 this month.
C. CITY'S DUTIES AND RESPONSIBILITIES:
Provide consultant will all available information to conduct research. (i.e. land values, permit
application, potential agreements, or any other related documents).
D. WORK PROGRAM/PROJECT SCHEDULE:
VHC's proposed level of effort for.this initial task is about 30 hours for a professional fee of
$10,000. The deliverable from this task would be a brief memo recommending further work, as
described in the following tasks, or recommending that the City wait until next year before
developing its independent, updated valuation.
2
EXHIBIT "B"
Payment Schedule (Fixed Fee Payment)
CONSULTANT's fees for such services as noted in Exhibit A shall be based upon the following cost
schedule:
Task I (See Exhibit A) VHC's proposed level of effort for this initial task is about 30 hours for a
professional fee of $10,000.
Task 2 (See Exhibit A) The proposed level of effort for this task is about 100 hours for an
estimated professional fee of $35,000.
Task 3 (See Exhibit A) The proposed level of effort for this task is about 15 hours for a
professional fee of $4,900.
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.
2
��NTINGT'
CITY O O BEACH
Professional �~• i9n \
.'. x
Service
PART I
Date: 2/15/2011 Project Manager Name: Tina Krause
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
ADMINISTRATOR, 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 assistance with AES valuation and assessment and presentation to the Board of
Equalization.
2) Estimated cost of the services being sought: $ 25,000
3) Are sufficient funds available to fund this contract? ® Yes ❑ No
If no, please explain:
4) Is this contract generally described on the list of professional service contracts approved by the
City Council? If the answer to this question is "No," the contract will require approval from the
City Council.) ® Yes ❑ No
5) Amount, Business Unit (8 digits) and Object Code (5 digits) where funds are budgeted:
31516/01 z (oll 60 $ 5i $
N(5q: & q�6 9 go d 0 $
6) Check below how the services will bed 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.
ep ment H Signatur Date
L _ a Z(
ecto of ance's Initials e
De ty City Administrator's Initials Date
APPROVED E IED ❑
ty Administrator's Signature Date