HomeMy WebLinkAboutSANTOLUCITO DORE GROUP, INC (2)INSURANCE NOT ON F9LE A-2021-221-01
IMORI(MA y t PROCEED
CLERK O'
DATA:
AGREEMENT TO PROVIDE ON -CALL PROPERTY APPRAISAL SERVICES
DEC 0 2 2021 FOR THE CITY OF SANTA ANA
THIS AGREEMENT is made and entered into on this 16th day of November, 2021 by and between
Santolucito Dore Group Inc., a California corporation ("Consultant"), and the City of Santa Ana,
a charter city and municipal corporation organized and existing under the Constitution and laws of
the States ofC�Ca
lifornia (�iaa ("City").
O �W�Kevt� JU 0y�) `2/�T RECITALS
A. The City desires to retain a consultant having special skill and knowledge in the field of
property appraisal and services on an as needed basis.
B. Consultant represents that Consultant is able and willing to provide such services to the
City.
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
On an on -call basis, and at the City's sole discretion, Consultant shall perform the services
described in the scope of work that was included in RFP No. 21-103, which is attached as Exhibit
A, and as more specifically delineated in Consultant's proposal, which is incorporated by reference
as though fully set forth herein.
2. COMPENSATION
a. City neither warrants nor guarantees any minimum or maximum compensation to
Consultant under this Agreement. Consultant shall be paid only for actual services
performed under this Agreement at the rates and charges identified in Exhibit B.
Consultant is one of three (3) consultants selected to provide property appraisal services
on an on -call basis under RFP 21-103. The total compensation for these services
provided by all such consultants selected under RFP 21-103 shall not exceed the shared
aggregate amount of $300,000 during the term of the Agreement, including any
extension periods.
b. Payment by City shall be made within 45 days (forty-five) days following receipt of
proper invoice evidencing work performed, subject to City accounting procedures.
Payment need not be made for work which fails to meet the standards of performance
set forth in the Recitals which may reasonably be expected by City.
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3. TERM
This Agreement shall commence on the date first written above and terminate on November
15, 2024, unless terminated earlier in accordance with Section 17, below. The term of this
Agreement may be extended for two 1-year period upon a writing executed by the City Manager
and City Attorney.
4. PREVAILING WAGES
Consultant is aware of the requirements of California Labor Code Section 1720, et seq.,
and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq.,
("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the
performance of other requirements on "public works" and "maintenance" projects. If the services
being performed are part of an applicable "public works" or "maintenance" project, as defined by
the Prevailing Wage Laws, and the total compensation is $1,000 or more, Consultant agrees to
fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the
City, its elected officials, officers, employees and agents free and harmless from any claim or
liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
5. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the City. This Agreement is not intended nor shall
it be construed to create an employer -employee relationship, a joint venture relationship, or to
allow the City to exercise discretion or control over the professional manner in which Consultant
performs the services which are the subject matter of this Agreement; however, the services to be
provided by Consultant shall be provided in a manner consistent with all applicable standards and
regulations governing such services. Consultant shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating to employees and shall be
responsible for all applicable withholding taxes.
6. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use,
modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property
embodied in plans, specifications, studies, drawings, estimates, and other documents or works of
authorship fixed in any tangible medium of expression, including but not limited to, physical
drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or
caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant
shall require all subcontractors to agree in writing that City is granted a non-exclusive and
perpetual license for any Documents & Data the subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal right to license any and all
Documents & Data. Consultant makes no such representation and warranty in regard to
Documents & Data which were provided to Consultant by the City. City shall not be limited in
any way in its use of the Documents and Data at any time, provided that any such use not within
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the purposes intended by this Agreement shall be at City's sole risk.
MINIMUM INSURANCE REQUIREMENTS
A. Consultant shall procure and maintain for the duration of the contract insurance against
claims for injuries to persons or damages to property, which may arise from or in
connection with the performance of the work hereunder by the Consultant, its agents,
representatives, or employees.
B. Coverage shall be at least as broad as:
1. Commercial General Liability (CGL Insurance: Insurance Services Office
Form CG 00 01 covering CGL on an "occurrence" basis, including products
and completed operations, property damage, bodily injury and personal &
advertising injury with limits no less than $1,000,000 per occurrence. If a
general aggregate limit applies, either the general aggregate limit shall apply
separately to this project/location (ISO CG 25 03 or 25 04) or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability Insurance: Insurance Services Office Form Number CA
0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8
(hired) and 9 (non -owned), with limit no less than $1,000,000 per accident for
bodily injury and property damage.
3. Workers' Compensation Insurance: as required by the State of California, with
Statutory Limits, and Employer's Liability Insurance with limit of no less than
$1,000,000 per accident for bodily injury or disease.
4. Professional Liability (Errors and Omissions) Insurance: appropriates to the
Consultant's profession, with limit no less than $1,000,000 per occurrence or
claim, $2,000,000 aggregate.
C. If the Consultant maintains broader coverage and/or higher limits than the minimums
shown above, the City requires and shall be entitled to the broader coverage -and/or the
higher limits maintained by the Consultant. Any available insurance proceeds in excess of
the specified minimum limits of insurance and coverage shall be available to the City.
D. Other Insurance Provisions- the insurance policies are to contain, or be endorsed to contain,
the following provisions:
Additional Insured Status- the City, its officers, officials, employees, and
volunteers are to be covered as additional insureds on the CGL policy with respect
to liability arising out of work or operations performed by or on behalf of the
Consultant including materials, parts, or equipment furnished in connection with
such work or operations. General liability coverage can be provided in the form of
an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20
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10 1185 or both CG 2010, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms
if later revisions used).
2. Primary Coverage- For any claims related to this contract, the Consultant's
insurance coverage shall be primary insurance primary coverage at least as broad
as ISO CG 20 0104 13 as respects the City, its officers, officials, employees, and
volunteers. Any insurance or self-insurance maintained by the City, its officers,
officials, employees, or volunteers shall be excess of the Consultant's insurance
and shall not contribute with it.
Notice of Cancellation- Each insurance policy required above shall state that
coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation- Consultant hereby grants to City a waiver of any right to
subrogation, which any insurer of said Consultant may acquire against the City by
virtue of the payment of any loss under such insurance. Consultant agrees to obtain
any endorsement that may be necessary to affect this waiver of subrogation, but
this provision applies regardless of whether or not the City has received a waiver
of subrogation endorsement from the insurer.
E. Self -Insured Retentions- Self -insured retentions must be declared to and approved by the
City. The City may require the Consultant to purchase coverage with a lower retention or
provide proof of ability to pay losses and related investigations, claim administration, and
defense expenses within the retention. The policy language shall provide, or be endorsed
to provide, that the self -insured retention may be satisfied by either the named insured or
City.
F. Acceptability of Insurers- Insurance is to be placed with insurers authorized to conduct
business in the state with a current A.M. Best's rating of no less than A:VII, unless
otherwise acceptable to the City.
G. Claims Made Policies- If any of the required policies provide coverage on a claims -made
basis:
1. The Retroactive Date must be shown and must be before the date of the contract
or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for
at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -
made policy form with a Retroactive Date prior to the contract effective date,
the Consultant must purchase "extended reporting" coverage for a minimum of
five (5) years after completion of contract work.
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H. Verification of Coverage- Consultant shall furnish the City with original Certificates of
Insurance including all required amendatory endorsements (or copies of the applicable
policy language effecting coverage required by this clause) and a copy of the Declarations
and Endorsement Page of the CGL policy listing all policy endorsements to City before
work begins. However, failure to obtain the required documents prior to the work
beginning shall not waive the Consultant's obligation to provide them. The City reserves
the right to require complete, certified copies of all required insurance policies, including
endorsements required by these specifications, at any time.
INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers,
agents, employees, contractors, special counsel, and representatives from liability: (1) for personal
injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for
personal injury, including death, and claims for property damage, which may arise from the
negligent operations of the Consultant, its subcontractors, agents, employees, or other persons
acting on its behalf which relates to the services described in section 1 of this Agreement; and (2)
from any claim that personal injury, damages, just compensation, restitution, judicial or equitable
relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and
hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial
or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in
this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant
further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including
fees and costs for special counsel to be selected by the City, regarding any action by a third party
challenging the validity of this Agreement, or asserting that personal injury, damages, just
compensation, restitution, judicial or equitable relief due to personal or property rights arises by
reason of the terms of, or effects arising from this Agreement. City may make all reasonable
decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing,
to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity
shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of,
pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and
employees against any and all liability, including costs, for infringement of any United States'
letters patent, trademark, or copyright infringement, including costs, contained in the work product
or documents provided by Consultant to the City pursuant to this Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with respect to
the costs incurred under this Agreement and any services, expenditures, and disbursements
charged to the City for a minimum period of three (3) years, or for any longer period required by
law, from the date of final payment to Consultant under this Agreement. All such records and
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invoices shall be clearly identifiable. Consultant shall allow a representative of the City to
examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to this Agreement for a period of three
(3) years from the date of final payment to Consultant under this Agreement.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Consultant agrees that
it shall not use or disclose such information except in the performance of this Agreement, and
further agrees to exercise the same degree of care it uses to protect its own information of like
importance, but in no event less than reasonable care. "Confidential Information" shall include all
nonpublic information. Confidential information includes not only written information, but also
information transferred orally, visually, electronically, or by other means. Confidential
information disclosed to either party by any subsidiary and/or agent of the other party is covered
by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any
information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the
Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant
without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e)
is independently developed by the Consultant without reference to information disclosed by the
City.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under this
Agreement.
12. NON-DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, gender identity, gender expression, gender, medical conditions, genetic
information, or military and veteran status, age, national origin, ancestry, or disability, as defined
and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization,
promotion, termination or other employment related activities or any services provided under this
Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all
applicable federal, state and local laws and regulations.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Consultant, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the terns
of this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Consultant. The parties agree that any
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terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Consultant,
Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement shall
be construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other consultants retained by City.
15. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant
compensation for all services performed by Consultant prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case
such work product shall be the property of the City unless prohibited by law, and
Consultant consents to the City's use thereof for such purposes as the City deems
appropriate.
b. Payment need not be made for work which fails to meet the standard of
performance specified in the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and signed by
the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or
remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not
similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties further agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or
arise out of, in connection with or by reason of this Agreement.
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18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and
in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
19. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of
this Agreement, and shall indemnify City fully, including reasonable costs and
attorney's fees, 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.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this Agreement.
20. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement
shall be in writing and shall be deemed to be properly given if delivered in person or mailed by
first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in
the manner provided in this Section, to the following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 7t4- 647-6956
With courtesy copies to:
Nabil Saba
Executive Director, Public Works Agency
City of Santa Ana
20 Civic Center Plaza (M-21)
P.O. Box 1988
Santa Ana, California 92702
Fax:714-647-5635
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To Consultant:
Christine S. Santolucito
President
Santolucito Dore Group Inc.
31600 Railroad Canyon Road, Suite 100-L
Canyon Lake, CA 92587
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by fax, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these
time frames, weekends, federal, state, County or City holidays shall be excluded.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
Daisy Gomez
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: w-u A. R
Laura A. Rossini
Chief Assistant City Attorney
RECOM NDED FOR APPROVAL:
Nabil S ba
Executive Director
Public Works Agency
Non -Fed Funding (6.1.2020)
CITY OF SANTA ANA
Krisfine Ridge
City Manager
CONSULTANT:
C
Chns me S. Santolucito
President
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SANTOLUCITO DOkb
GROUP, INC.
REAL ESTATE SERVICES
FEE
PROPOSAL
PREPARED FOR:
City of Santa Ana
Public Works Agency; M-36
20 Civic Center Plaza
Ross Annex
Santa Ana, CA 92701
PREPARED BY:
Santolucito Dore Group, Inc.
31600 Railroad Canyon Road
Suite 100-L
Canyon Lake, CA 92587
3. FEE PROPOSAL
sAN, INC. ra aaRE
GROUP-� REAL ESTATE SERVICES
FEE PROPOSAL
Appraisals are typically bid on a lump sum per subject property basis, depending on the type of
property and complexity of the appraisal problem. Other types of appraisal services are typically
billed on an hourly rate basis. SO Group's fee for the appraisals of the sample properties
referenced in the RFP and our hourly rates for any additional services requested are provided
below. Our method of appraisal, research, applicable tasks, and proposed schedule are included
in the body of the technical proposal and included following our fee proposal as well. All appraisal
and appraisal review reports will be prepared in narrative format to be utilized for condemnation
purposes. They will comply with USPAP, the Caltrans Right of Way Manual, the Uniform Act, and
California Eminent Domain law.
REAL ESTATE APPRAISAL REPORT FEES
Appraisal of 1224 East Warner Avenue (Cherry Aerospace Park Partial Acquisition)
o M1 Light Industrial property, 15.45-acre site, approximate 270,000 square foot
building (the building size was not provided on public records and was taken from
Google Earth measurements for this proposal)
o The acquisition of 10 feet from the back of sidewalk does not appear that it would
impact the building improvements, any business operations, or parking
o It appears a land only appraisal with compensation for site improvements
(including, but not limited to: grass, bushes, several trees, a flagpole, and brick
planter, as well as a monument sign that may need to be acquired, then relocated
further back on the site)
o An analysis of the value of the whole after acquisition will be made to determine if
damages exist due to the partial acquisition
o The fee for this type of appraisal would be approximately $4,000 for one appraisal
with a turn around time of 45-60 days, from notice to proceed and receipt of all
pertinent project and parcel information including the preliminary title report and
any other necessary documents (provided by the City), with discounts given when
receiving multiple parcels/appraisals of similar property types
Appraisal of 2246 South Evergreen Street (Residential Full Acquisition)
o R1 Single Family Residential property, 7,835 square foot site, 931 square foot
residence, built in 1952
o The acquisition of the entire property in full fee
o The fee for this type of appraisal would be approximately $2,500 for one appraisal
with a turn -around time of 30-45 days, from notice to proceed and receipt of all
pertinent project and parcel information including the preliminary title report and
any other necessary documents (provided by the City), with discounts given when
receiving multiple parcels/appraisals of similar property types
HOURLY RATES
• Principal - $250-350 per hour for valuation and consultation
• Principal - $350-$450 per hour for litigation support/depositions/court appearances
• Senior - $150 per hour for valuation and consultation
• Administrative/Research - $75-$100 per hour for valuation support
City of Santa Ana, Public Works Agency —Fee Proposal for On -Call Property Appraisal Services
Our fees for the written narrative appraisal reports include site inspections with each property
owner and meetings at the City, as required. We will provide condemnation support, as
necessary, billed on an hourly basis. Draft electronic versions of the appraisal reports will be
delivered for review and final electronic and hard copies, when requested, will be delivered to the
client upon approval from the review appraiser. There are no additional document or historical
retrieval costs anticipated. Travel and material costs are included in our total fee for this
assignment.
City of Santa Ana, Public Works Agency— Fee Proposal for On -Call Property Appraisal Services
UNDERSTANDING OF NEED AND
PROPOSED METHOD TO ACCOMPLISH WORK
SD Group looks forward to tailoring specific processes to comply with the City's policies,
procedures, and preferences. SD Group prides itself on its ability to complete complex projects
on schedule and within budget. Christie and Lance have years of experience coordinating with
various agencies and will strategize and coordinate each project thoroughly from the beginning
to deliver high quality outstanding appraisal services. Christie and Lance will work closely with
the City's Project Managers and staff to discover ways to provide assistance, offer
recommendations whenever challenges are presented, and will seek feedback pertaining to
progress and satisfaction with SD Group's performance.
Appraisal is unique to each property and all recognized appraisal methodologies are completed
with the highest level of quality. The following section describes our general work plan for
completing the various appraisal and appraisal review assignments.
APPRAISAL
The purpose of an appraisal report is to produce a document that can be used by the City in
negotiations for acquisition or disposition of property. The typical scope of work for an appraisal
includes, but is not necessarily limited to, the following steps:
Detailed Inspection of the Property
The acquisition process begins when the appraiser sends out the Notice of Intent to Appraise
letters to impacted property owners (for acquisitions). The appraiser will invite the property
owner to be present for the onsite inspection. Additionally, City staff, other consultants/experts
involved in the project, and, if applicable, the acquisition agent, are encouraged to attend the
inspection as well. A complete understanding of the larger parcel, the subject property and
overall impacts are a critical step in the appraisal process.
Complete Highest and Best Use Analysis
The cornerstone of the appraisal process is a detailed highest and best use of the property as
vacant and as improved, which will be performed to isolate any valuation issues that arise
after a detailed analysis of the legal, physical, and financial aspects of the property. This is
the essential basis for the valuation analysis and ultimately the just compensation. The last
critical stage is to determine the highest and best use of the remainder. Issues that may arise
from this final test is uneconomic remainders, determination of underlying fees, or additional
considerations for partial acquisitions and easements. This ultimately determines factors that
may result in severance damages.
Research Market Data of the Neighborhood, Subject Property, and Comparable Sales
After the determination of the highest and best use, the comparables are selected with similar
highest and best uses. When identifying sales of comparable properties, market research will
include discussions with appropriate real estate professionals and governmental agencies. All
sales data utilized in an appraisal report will be confirmed with a party to those transactions,
whenever possible. Details of the comparables are presented to fully disclose all issues for
adjustments applicable to the valuation of the subject.
City of Santa Ana, Public Works Agency— Fee Proposal for On -Call Property Appraisal Services
Write a Narrative Appraisal Report
The type of appraisal report utilized will be determined on a parcel -by -parcel basis. This
determination will be made after analyzing the particular assignment and interests to be
acquired, i.e., fee, easement, etc. A narrative appraisal report is typically used for public
agency/eminent domain purposes. The appraiser may also be required to complete an
Appraisal Summary Statement at the request of the City. Typical steps in the appraisal
process are listed below:
• Identify the larger parcel and the appraisal problem;
• Obtain and review legals, plats, title reports, environmental reports, and other
documents (provided by the City);
• Send out Notice of Intent to Appraise letter;
• Gather market data;
• Perform property inspection;
• Meet with project designer and others to address property impacts;
• Perform a detailed highest and best use analysis;
• Analyze and inspect comparables;
• Valuation via the three approaches to value (sales, cost, income), as applicable for the
property type;
• Coordinate with Fixtures and Equipment Appraisers and Business Goodwill Appraisers;
• Reconcile approaches to value;
• Valuation of the part(s) acquired and improvements located within the acquisition area;
• Valuation of the remainder after acquisition;
• Assess and value potential damages and project benefits;
• Prepare written appraisal report;
• Work with the Review Appraiser;
• Prepare the Appraisal Summary Statement; and
• Deliver the completed appraisal report.
After the delivery of the appraisal any review comments will be addressed, and when required,
the report will be corrected or expanded to ensure the most reliable document for public
scrutiny.
APPRAISAL REVIEW
Appraisers are required to comply with the Uniform Standards of Professional Appraisal Practice
(USPAP) when performing appraisals and appraisal reviews. As such, the review appraiser is
required to address a number of specific items pertaining to the report under review including the
completeness of the report, adequacy and relevance of the data, propriety of the adjustments,
form an opinion as to the appropriateness of the appraisal methods and techniques used to
complete the appraisal, form an opinion as to whether or not the analyses, opinions, and
conclusions are appropriate and reasonable or develop reasons for the disagreements, if any. In
addition to USPAP, eminent domain projects with federal and state funding require compliance
with various additional regulations and guidelines.
The scope of work for an appraisal review typically includes the following steps:
Identify the appraiser(s) that conducted the appraisal;
Become familiar with the subject property and review legals, plats, title reports,
environmental reports, and other documents;
City of Santa Ana, Public Works Agency— Fee Proposal for On -Call Property Appraisal Services
• Become familiar with the subject neighborhood and the comparable properties used in
the various analyses;
• Check all mathematical calculations made by the appraiser(s);
• Cross-reference narrative descriptions within the report with photographs, maps, and
other exhibits (when included in the work under review);
• Review the weighting assigned to the approaches to value used in the appraisal;
• Determine if accepted appraisal principles, techniques, and standards were followed in
arriving at property value in accordance with USPAP, California law, and Caltrans,
FHWA, and FTA regulations, when applicable;
• Ensure that the appraiser(s) did not overlook any feature that would materially affect the
property value;
• Develop an opinion as to the completeness of the material under review, given the
review appraiser's scope of work;
• Develop an opinion as to the apparent adequacy and relevance of the data and the
propriety of any adjustments to the data, given the review appraiser's scope of work;
• Develop an opinion as to appropriateness of the appraisal methods and techniques
used, given the review appraiser's scope of work, and developed reasons for any
disagreement;
• Develop an opinion as to whether the analyses, opinions, and conclusions are
appropriate and reasonable, and developed the reasons for any disagreement; and
• Form an opinion as to whether the appraisal can be used to establish fair market value
for the subject larger parcel and make a recommendation as to whether the appraisers'
estimate of fair market value should be used as just compensation for the proposed
acquisition.
• Work with the appraiser whose work is under review to address any areas of concern
within the appraisal.
• Prepare and deliver the written appraisal review report.
SD Group has the availability to deliver appraisal services to the City on an on -call basis. We
have a history of delivering on time and within budget.
City of Santa Ana, Public Works Agency— Fee Proposal for On -Call Property Appraisal Services
SCOPE OF SERVICES AND SCHEDULE
SD Group has the availability to deliver appraisals and appraisal reviews to the City in a timely
manner. Appraisal assignments are typically completed within 45 to 60 days after notice to
proceed (NTP) and receipt of all pertinent project and parcel information. Reviews are typically
completed within 7 to 10 days. The steps necessary to complete and appraisal and appraisal
review were previously provided in the Understanding of Need and Proposed Method to
Accomplish Work section. Our proposed schedule for a typical right of way appraisal is as follows:
• Day 1 — NTP and receipt of Preliminary Title Reports (PTR) and other relevant documents;
• Day 2 — Send out Notice of Decision to Appraise (NODA) letters;
• Days 3-23 — Research subject properties (parcel size, existing land use/zoning, other
pertinent factors), identify the appraisal problem, review PTRs and other
reports/documents, research neighborhood and market data, perform detailed highest and
best use analyses, and select, analyze, and verify comparables;
• Days 23-25 — Property inspections and comparables inspections;
• Days 26-40 — Valuations via applicable approaches (sales, cost, income);
• Day 41 — Reconcile the approaches used;
• Days 41-45 — Type the narrative appraisal reports; and
• Days 45-60 — Deliver the draft appraisal reports.
We understand the description and scope of work outlined in the RFP Attachment 1, under
Property Appraisal Services, and will meet all requirements. All work will be under the oversight
of Christie, the Project Manager for this contract. Additionally, Lance will review and sign all
reports requiring an MAI signature. We have Quality Assurance/Quality Control (QA/QC) plan in
place for each assignment that is tailored to the specific needs of each client and project.
APPRAISAL METHODOLOGY AND PROCESS
Property will be appraised via one or more of the three traditional approaches to value (cost, sales,
and income capitalization), depending on the highest and best use and the quality and quantity of
data available for analysis.
The cost approach is a breakdown of property into land and building components. It assumes that
an informed buyerwould pay no more for a property than the cost of acquiring land and reproducing
improvements of similar utility, less the amount of any depreciation. This approach is most
applicable when improvements are relatively new and represent the highest and best use of the
land, or in the case of special -use properties, for which there are few comparable sales.
The sales comparison approach is the comparison of similar properties, that recently sold or are
currently listed for sale, to the subject property. It assumes that an informed buyer would pay no
more for a property than the cost of acquiring a substitute property of similar utility and desirability.
This approach is most applicable when there are sufficient recent and reliable transactions of similar
properties. It is most often relied upon in the valuation of owner -user properties.
The income capitalization approach reflects the present value of the future benefits of property
ownership. It converts a property's net operating income into a lump -sum value via capitalization.
The two methods of income capitalization are direct capitalization and yield capitalization (via a
discounted cash flow analysis), with one or both applied, as applicable to the property being
appraised. This approach is most applicable for income -producing properties.
City of Santa Ana, Public Works Agency— Fee Proposal for On -Call Property Appraisal Services
Reconciliation of the appropriate approaches to value is the final analytical step in the valuation
process. The relative dependability and applicability of each approach to value is each is evaluated
to derive a value conclusion for the subject property.
RESOURCES TO BE UTILIZED
SD Group has the latest in-house hardware (laptops, monitors, printers, scanners) and software
(Narrative1, Microsoft Office Suite, Adobe Acrobat Pro, Google Earth Pro, DeLorme), as well as
subscriptions to professional market data (RealQuest, NiteOwl Pro, MLS, Costar, LoopNet) for
searching property information, records, deeds, and sale/rent comparables. We keep primarily
electronic files stored on a server that is backed up regularly. We have an extensive database of
market data, trends, and comparable data from previous projects to pull from, when relevant to
the current appraisal assignment. We are fully equipped to handle the City's appraisal
assignment.
City of Santa Ana, Public Works Agency— Fee Proposal for On -Call Property Appraisal Services