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Home My WebLink About090208 Amend to Agmts Desmond Marcello-Amster and Converse ConsulREQUEST FOR AGENCY ACTION AGENCY BOARD MEETING DATE: SEPTEMBER 2, 2008 TITLE: AMENDMENTS TO AGREEMENTS WITH DESMOND, MARCELLO & AMSTER AND CONVERSE CONSULTANTS EXECUTIVE DIRECTOR RECOMMENDED ACTION AGENCY SECRETARY USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the Executive Director and Agency Secretary to execute the attached amendment to the agreement with Desmond, Marcello & Amster to amend the rate schedule for appraisal services, subject to non - substantive changes approved by the Executive Director and Agency General Counsel. 2. Authorize the Executive Director and Agency Secretary to execute the attached amendment to the agreement with Converse Consultants for an additional amount of $50,000 for a total contract amount not to exceed $125,000 for environmental site assessment services, subject to non - substantive changes approved by the Executive Director and Agency General Counsel. DISCUSSION The Community Redevelopment Agency (Agency) of the City of Santa Ana often acquires property for the purpose of furthering its goals of fostering affordable housing as well as business development. Periodically, staff requires assistance for fixtures and equipment and goodwill appraisal services along with environmental site assessments. Desmond, Marcello & Amster (DM &A) is a highly respected firm specializing in the valuation of privately held businesses and business assets. The Agency entered into an agreement with DM &A on November 18, 2002, to perform fixture and equipment and goodwill loss appraisals and other related services as needed for projects such as the auto mall 5 -25 Amendments to Agreements with DM &A and Converse Consultants September 2, 2008 Page 2 expansion. The agreement was amended on April 21, 2003, for an amount not to exceed $132,500 with an updated rate schedule. Given the rate schedule has not been updated since 2003, staff recommends amending the current agreement as requested by DM &A to update the schedule. The remaining balance on the contract of $53,047.50 will continue to be utilized on an as needed basis. The Agency originally approved a contract with Converse Consultants on November 18, 2002, to perform environmental site assessment services for the Santa Ana Auto Mall. On November 21, 2006, the Agency approved the current contract with Converse Consultants for environmental services on an as needed basis for various potential acquisitions. There is now a need to increase the contract amount to conduct environmental site assessments for other properties under evaluation for future development. The Agency currently has a $75,000 consulting services contract with Converse Consultants with a balance of $20,383. Converse Consultants has provided highly professional services and staff recommends amending the contract to an amount not to exceed $125,000. FISCAL IMPACT Funds are available in the Merged Redevelopment Account (account no. 570 - 933 -6291) and the Merged Housing Development Services (account no. 507 -508- 6291). Nancy T. Edwards Assistant Director Community Development Agency CJN /GL /mlr 090208 AmendAgreeDesmond &Converse.doc 3 APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director 1` Finance & Management Services Agency 5 -26 SIXTH AMENDMENT TO AGREEMENT THIS SIXTH AMENDMENT TO AGREEMENT is entered into this 2nd day of September, 2008, by and between DESMOND, MARCELLO & AMSTER, a California corporation ( "Consultant') and the Community Redevelopment Agency of the City of Santa Ana, a public body, corporate and politic ( "Agency "). Recitals: A. The parties entered into an Agreement dated November 18, 2002, (hereinafter "said Agreement') by which Consultant has provided appraisal services to the Agency. B. In accordance with the terms and conditions of said Agreement, the parties wish to amend the rates and charges which City will pay for services provided. Wherefore, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, as previously amended, except those amended in this Sixth Amendment to Consultant Agreement, the parties agree as follows: 1. Section 2.a., COMPENSATION, shall be deleted in its entirety and replaced with the following: "2.a. Agency agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A -2, attached to this Sixth Amendment to Agreement and incorporated by reference. The total sum to be expended tinder said Agreement shall not exceed $132,500.00 during the term of said Agreement." 2. Except as herein amended, all terns and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Sixth Amendment to Consultant Agreement on the date and year first written above. ATTEST: PATRICIA E. HEALY Agency Secretary APPROVED AS TO FORM: JOSEPH W.FLETCHER Agency General Counsel Bv: Laura Sheedy, Asst. Counsel COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA CYNTHIA J. NELSON Executive Director DESMOND, MARCELLO & AMSTER (NAME) (Title) 5-27 Title Staff Member Business Valuation/ Goodwill EXHIBIT A -2 FEESCHEDULE Effective 8/1/08 Depo /Court Standard Rate Appearance Rate Senior Partner Aaron Amster 295 400 Partner Wesley Nutten 295 400 Partner Madeleine Mamaux 250 350 Senior Manager Ricardo Goni 200 250 Senior Manager Eric Lietzow 200 250 Manager Diane Christensen 175 200 Sr Financial Analyst Kevin Blair 150 N/A Financial Analyst Joseph Jackson 125 N/A Financial Analyst Patricia Francis 120 N/A Financial Analyst David Lewin 120 N/A Tangible Asset Valuation Senior Manager Manager Senior Appraiser Rich Hodges 200 Michael Lacey 170 Marcus Pigrom 135 5 -28 300 250 N/A FIRST AMENDMENT TO CONSULTANT AGREEMENT THIS FIRST AMENDMENT TO CONSULTANT AGREEMENT is entered into this 2nd day of September, 2008, by and between Converse Consultants, a California corporation ( "Consultant') and the Community Redevelopment Agency of the City of Santa Ana, a public body, corporate and politic ( "Agency "). Recitals: A. The parties entered into an Agreement dated November 21, 2006, (hereinafter "said Agreement') by which Consultant has provided environmental site assessment services to the Agency. B. In accordance with the terms and conditions of said Agreement, the parties wish to increase the total compensation available for the provision of services under said Agreement. Wherefore, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this First Amendment to Consultant Agreement, the parties agree as follows: 1. Section 2.a., COMPENSATION, shall be deleted in its entirety and replaced with the following: "a. Agency agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A to said Agreement. Total compensation to be expended under this Agreement, shall not exceed One - hundred Twenty -five Thousand Dollars ($125,000.00) during the term of this Agreement." 2. Except as herein amended, all term and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Consultant Agreement on the date and year first written above. ATTEST: PATRICIA E. HEALY Secretary COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA CYNTHIA J. NELSON Executive Director 5-29 APPROVED AS TO FORM: CONVERSE CONSULTANTS JOSEPH W.FLETCHER Agency General Counsel By: Laura Sheedy Assistant Counsel (NAME) (Title) 5 -30 Converse Consultants Geotechnical Engineering, Environmental & Groundwater Science, Inspection & Testing Services List of Services Converse Consultants is able to provide the following services: Transaction Screen • Site Reconnaissance Process Reports • Limited Historical Review through Sanborn maps and City Directories. • Interviews with Owners and Tenants Phase I Environmental • Site Reconnaissance Site Assessments Review of Regulatory Records • Historical Research through aerial photographs, maps, etc. • Interview with Owners, Tenants, Regulatory Agency Personnel • Third Party Reviews Phase II — • Risk Assessments Site Characterization Preparation of Health & Safety Plans • Installation & Monitoring of Groundwater Wells • Preliminary Endangerment Assessments • Soil and Groundwater Sampling • Underground Storage Tank Assessment & Design Data Analyses and Third Party Reviews • Brownfields Grant Writing, Management, and Support Phase ll — Remedial Action Workplans Site Remediation In -situ & Ex -situ Soil Venting & Vacuum Extraction Excavation of Contaminated Soils • Groundwater Air Sparging & Vacuum Extraction • Free Product Recovery Bio- treatment Asbestos and Pre - demolition Surveys Lead -Base Paint Abatement Specifications • Abatement Design and Monitoring Surveys Operations and Maintenance Plans Laboratory Analyses Air Quality • Air Pollution Equipment Permitting • Chronic & Acute Health Risk Assessments • Indoor Air Quality Evaluations Regulatory Compliance Industrial Health & Safety Compliance • Hazardous Materials Management Storm Water Pollution Prevention Plans • National Pollutant Discharge Elimination System Permitting • Health & Safety Training • Americans with Disability Act Reviews • Probable Maximum Loss Assessments 185 East Paularino Avenue, Suite B, Costa Mesa, California 92626 Telephone: (714) 444 -9660 ♦ Facsimile: (714) 444 -9640 ♦ e -mail: costemesa @converseconsultants.com Exhibit A 5-31 City of Santa Ana Community Redevelopment Agency August 14, 2008 Schedule of Fees Converse's Schedule of Fees for 2008 is attached. Range of Fees for Proposed Services Field Inspections and • Asbestos Survey = $2,000 Surveys This includes the collection of up to 50 bulk samples of suspect asbestos- containing materials. Converse's Asbestos Surveys typically range from $2,000 to $15,000 for a large shopping center. • Lead -base Paint Survey = $2,000 This is the base fee for a non -HUD compliant survey, which can be completed in 6 hours. The survey will be completed with portable x -ray fluorescence (XRF) device. Converse's Lead -base Paint Surveys typically range from $2,000 to 12,000 for a large shopping center. Transaction Screen • Base Fee = $1,200 Process Reports The base fee is based on a single commercial parcel. Converse's Transaction Screen Process Reports typically range from $1,200 to $1,800 depending on the number of and types of property uses identified. Phase I Environmental • Base Fee = $2,600 Site Assessments The base fee is based on a single commercial parcel. $500 for each additional contiguous parcel to be addressed. Converse's Phase I Environmental Site Assessments typically range from $2,600 to $12,000 for a city block occupied by various residential and commercial buildings. The base fee for an Industrial facility is typically $3,000 but again can be much higher due to size and number of parcels and uses. The base fee for a corridor or alignment study is typically $5,000 per mile. Phase 11— • Base Fee = $8,000 Site Characterization The base fee is based on a limited number of shallow borings (no more then 4 borings to maximum depth of 10 -feet bags) and limited analytical schedule. Laboratory turnaround time is 5 to 7 days (normal turnaround time). Cost estimates for Phase II assessments are difficult to determine due to many factors: scope of work; number of borings; analytical schedule; turnaround time. Converse has completed Phase II assessments ranging from $8,000 to $200,000. 0 Converse Consultants 2 5 -32 City of Santa Ana Community Redevelopment Agency August 14, 2008 Field Testing and • Base Fee = $1,000 Sampling The base fee is based on a field technician to collect up to 4 grab soil samples from a stockpile. Cost does not include analytical fees. Phase II — Remedial Action Workplans — To generate a Remedial Action Workplan, Site Rernediation the base fee is $7,500. Again, cost estimates for remediation projects are difficult to determine due to many factors: scope of work; quantity of soil /groundwater to be remediated; disposal costs; hazardous versus non - hazardous waste, etc. Converse has completed remediation projects ranging in cost from $20,000 to over one million dollars. Phase II assessments ranging from $8,000 to $200,000. 0 Converse Consultants 5 -33 9 CONVERSE CONSULTANTS Schedule of Fees Environmental Personnel Introduction It Is the objective of Converse Consultants to provide its clients with quality professional and technical services and a continuing source of professional advice and opinions. Services will be performed In a manner consistent with that level of care and skill ordinarily exercised by members ofthe profession currently practicing in the same locality under similar conditions. This fee schedule is valid through January 31, 2009. Hourly Charges for Personnel Staff assignments will depend on personnel availability, job complexity, project site location and experience level required to satisfythe technical requirements of the project and to meet the prevailing standard of professional care. Field Technical Services Solis Technician $65 Senior Solis Technician 75 Supervisory Solis Technician 90 Professional Services (Field and Office) Staff Professional $70 Senior Staff Professional 85 Project Professional 97 Senior Professional 125 Principal Professional 145 Principals /Consultants 180 Office Support Clerical/Word Processing $63 Drafting 62 CAD Operator /Drafting Manager 71 An overtime charge of 50 percent of the above hourly rates (excluding Professional Services) will be added for time in excess of eight hours per day and for all time on Saturdays, Sundays and holidays. An overtime charge of 100 percent of the above hourly rates (excluding Professional Services) will be charged on Sunday If hours worked was seven continuous eight hours per day in one work week, not counting vacation or sick leave within the week. Travel time to and from the job site will be charged at the hourly rates for the appropriate personnel. Expenses 1, Exploration expenses (drilling, trenching, etc.) are charged at cost plus fifteen percent. 2. Travel and subsistence expenses (transportation, room and board, etc.) for Individuals on projects requiring travel and /or living away from a principal office are charged at cost plus fifteen percent. 3. Automobile and truck expenses are charged at cost plus fifteen percent (rentals) or at a rate of fifty —five cents per mile for company - owned vehicles traveling between principal office and project. 4. Other out -of- pocket direct project expenses (aerial photos, long- distance telephone calls, permits, outside printing services, tests, etc.) are charged at cost plus fifteen percent. Invoices 1. Invoices will be submitted to the Client on a monthly basis, and a final bill will be submitted upon completion of services. 2. Payment is due upon presentation of Invoice and is past -due thirty days from invoice date. In the event Ciientfails to make any payment to Converse when due, Converse may immediately cease work hereunder until said payment, together with a service charge at the rate of eighteen percent per annum (but not exceeding the maximum allowed by law) from the due date, has been received. Further, Converse may at its sole option and discretion refuse to perform any further work irrespective of payment from Client in the event Client fails to pay Converse for services when said payments are due. 3. Client shall pay attomeys' fees or other costs Incurred In collecting any delinquent amount. General Conditions The terms and provisions of the Converse General Conditions are incorporated into this fee schedule as though set forth in full, If a copy ofthe General Conditions does not accompany this fee schedule, Client should request a copy from this office. Converse Consultants EP2008 5-34