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HomeMy WebLinkAbout11667RESOLUTION NO. 11667 A RESOLUTION AWARDING A PROFESSIONAL SERVICES CONTRACT TO I.J. HILL APPRAISAL SERVICES FOR THE PERFORMANCE OF APPRAISALS FOR REAL ESTATE ACQUISITION, PROJECT NO. 09 -037, AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SFrTinN 1 The Contract between I. J. Hill Appraisal Services and the City of Pueblo, dated August 10, 2009, for appraisal services, is hereby approved in substantially the form attached hereto, with such minor changes therein as shall be approved by the President of City Council and the City Attorney. SECTION 2. The President of City Council is hereby authorized to execute and deliver the Contract in the name of and on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. SECTION 3. Funds not to exceed $9,500 will be paid from the following project accounts for the appraisal services: Honor Farm, Project No. CP0233 $6,250.00 Police Building, Project No. PB0601 $1,250.00 Wastewater, Professional Services 525 - 4110 - 432.30 -01 $2,000.00 A77TSTFD SY: CITY CLERK INTRODUCED: August 10, 2009 BY: Randy Thurston } C � OUNCILPERSON APPR D' } �- PRESIDENTaf Cfty Council WHO SRI Background Paper for Proposed RESOLUTION AGENDA ITEM # M —1 DATE: AUGUST 10, 2009 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT JERRY M. PACHECO, DIRECTOR TITLE A RESOLUTION AWARDING A PROFESSIONAL SERVICES CONTRACT TO I.J. HILL APPRAISAL SERVICES FOR THE PERFORMANCE OF APPRAISALS FOR REAL ESTATE ACQUISITION, PROJECT NO. 09 -037, AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE SAME ISSUE Should the City Council award a professional services contract to I. J. Hill Appraisal Services for the completion of appraisal services for properties related to the Honor Farm, Wastewater Treatment Plant, and Police Building projects? Approval of the Resolution. BACKGROUND The City solicited proposals for the completion of appraisals for one City -owned parcel within the Honor Farm property, eight privately owned in- holdings within the Honor Farm master plan area, a parcel adjacent to the City's Wastewater Treatment Plant, and a parcel located adjacent to the City's new police annex building. The proposal from I.J. Hill Appraisal was the most responsive proposal received by the City Purchasing Department for the completion of the appraisals. FINANCIAL IMPACT The cost of the appraisal services will not exceed $9,500 for the total of 12 appraisal reports. The appraisal services will be paid for from the following project accounts: Honor Farm, Project No. CP0233 $6,250.00 Police Building, Project No. PB0601 $1,250.00 Wastewater, Professional Services 525 - 4110 - 432.30 -01 $2,000.00 AGREEMENT FOR APPRAISAL SERVICES (ACQUISITION) THIS AGREEMENT entered into this 10th day of August 2009, by and between the City of Pueblo, Colorado, a municipal corporation, hereinafter referred to as the "City," and I.J. Hill Appraisal Services, hereinafter referred to as the "Contractor." WITNESSETH THAT: WHEREAS, the City proposes to acquire certain real property and desires that the Contractor furnish the City certain services with respect to such property, including an appraisal of each parcel of the property, and the Contractor represents that he or she is fully qualified to perform such services and will furnish such services personally; and WHEREAS the services to be provided under this Agreement are necessary to achieve the purposes of the possible sale and acquisition of real property for various City of Pueblo projects ( "Project ") and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) notwithstanding that no federal financial assistance is or will be available to pay all or any part of the cost of such Project. NOW, THEREFORE, the City and the Contractor, for the consideration and under the conditions hereinafter set forth, do agree as follows: ARTICLE 1. Property To Be Appraised. A description of the real property to be appraised, including an identification of any interests in the real property to be specifically excluded from appraisal, are set forth in the attached Exhibit A. A separate appraisal is to be furnished for each "parcel." (The term "parcel" means any tract or contiguous tracts of land in the same ownership, whether any such tract consists of one or more platted lots or a fractional part of a lot. An easement or other separately held interest in two or more parcels shall be considered to be a separate parcel for appraisal purposes and an exception to the title to the parcels so encumbered. An easement in a parcel that is appurtenant to another parcel to be acquired by the City shall be considered to be part of such other parcel and an exception to the title of the parcel encumbered.) Each parcel shall be considered to include all right, title, and interest of the owner in or to any adjacent or abutting streets, alleys, or other public rights of way. ARTICLE 2. Purpose and Basis or Valuations. (a) Purpose and Significance of Appraisals. The appraisals to be furnished under this agreement are required by the City for its guidance in making fair and impartial determinations of fair market value and the just compensation to be offered to each property owner. The Contractor shall be guided by those objectives when estimating values. Appraisal reports will be reviewed carefully by the City. Accordingly, the text of each appraisal report must cover all matters germane to the required valuation findings and must provide a full explanation of the Contractor's reasoning and his analyses of the evidences of value, so that a reviewer will be able to follow the Contractor's analyses and understand how he reached his valuation conclusions. (b) Appraisal Standards. The appraisals under this agreement shall be based on nationally recognized appraisal standards and techniques to the extent that such principles are consistent with the concepts of value and the rules on the admissibility of evidence of value under the eminent domain law of the State of Colorado ( "State "). Factors relating to race, color, religion, sex or national origin, or to racial, religious or ethnic identification of neighborhoods are not relevant to the estimation of value and shall not be considered in connection with appraisals of residential real property. (c) Date of Valuation. The Contractor's valuation shall be as of a date concurrent with the preparation of the report unless the City has specified some other date of valuation. (d) Relocation Assistance. The Contractor's analyses and opinions of property value shall not reflect any allowance for the relocation payments and other assistance provided under the URA. (e) Influence of Project on Property Value. In forming opinion(s), the Contractor shall disregard any decrease or increase in the fair market value of the real property to be acquired, prior to the date of valuation, caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for such project, other than that due to physical deterioration within the reasonable control of the owner. (In the case of a partial acquisition, Page 1 of 14 using the State modified before- and -after method of valuation, the Contractor's opinion of the value of the remaining not- to -be- acquired portion of the property shall reflect any increase or decrease in value attributable to the project.) If the determination of changes in value caused by the project is a problem, the Contractor's report shall cite the ruling followed and its source and shall explain the effect of the ruling on his opinion of value. ARTICLE 3. Scope of Contractor's Services. The Contractor agrees to perform the following services: (a) Appraise each parcel and prepare and deliver to the City, within 60 calendar days after the date of this agreement, five (5) copies of the appraisal report(s) conforming to the provisions of this agreement. The Contractor shall personally inspect each parcel, including all buildings, structures, fixtures, and other improvements to the property. The Contractor shall give the owner or his designated representative an opportunity to accompany the Contractor during his detailed inspection of the property. If the owner of a compensable interest in the property or a representative of such owner does not accompany the Contractor during the inspection, the Contractor shall include in his appraisal report a copy of his notification to the owner of the opportunity to accompany the Contractor and evidence of the owner's receipt of such notification. In the process of inspecting the property, the Contractor shall, to the extent practicable, ascertain the rights of all parties in possession and note for consideration all factual information and comments furnished by the owner or his representative relevant to the appraisal. (b) Testify as an expert witness in behalf of the City in any judicial proceeding involving any property appraised under this agreement. Such services shall include such reasonable time as may be required for re- inspection of the property, updating the Contractor's valuation, participation in pretrial conferences with counsel for the City, and testifying in the judicial proceeding. The compensation for such services shall be determined in accordance with Article 6. (c) Modify or furnish supplements to any appraisal report furnished under this agreement, without additional cost to the City, if (1) applicable principles of law with respect to the valuation of the property require the modification or supplementing of such appraisal, (2) material omissions, inaccuracies, or defects in the appraisal report are discovered after delivery and acceptance of the report by the City, or (3) the Contractor receives or becomes aware of relevant additional appraisal information in existence prior to the date the Contractor signed the report. If there is a significant delay between the date of valuation and the date of acquisition of any parcel or if the property has been materially altered since the appraisal by a fire, a revised determination of the boundaries of the property to be acquired, or other cause, the Contractor shall, if requested by the City, furnish the City a supplementary report updating this valuation and the supporting data and analyses to a current date. The compensation for such updating of an appraisal shall be determined in accordance with Article 6. (d) Estimate the value of any right or interest proposed to be reserved by the owner in a property appraised by the Contractor, such as an easement for access to other property of the owner, the right to continue occupancy for an extended period after the City acquires the property, or the right to remove any building, structure, fixture, or other improvement. The compensation to be paid to the Contractor for furnishing any such valuation shall be determined in accordance with Article 6. (e) Consult with the City and its legal counsel regarding services to be performed by the Contractor, at such time(s) as may be mutually convenient for the parties to this agreement. The Contractor shall initiate such consultations whenever the Contractor is in doubt as to whether an element of property is real or personal property or needs legal advice on any aspect of the appraisals to be furnished under this agreement. There shall be no charge by any party for such consultations. ARTICLE 4. Contents of Appraisal Reports. Each appraisal report to be furnished by the Contractor under this agreement shall contain certain information and the Contractor's conclusions and opinions, together with the data and analyses by which they were derived, as set forth below. A separate report shall be submitted for each parcel. However, if more than one parcel is to be appraised, all general data may be included in a separate data volume that is referenced in the separate appraisal reports on the individual parcels. The appraisal report on each parcel shall include the following: (a) A summary headed "Appraisal Report for Real Estate Acquisition — City of Pueblo" or "Appraisal Report for Valuation of Property — City of Pueblo ", depending on whether the report is for acquisition of property or the sale of City Property, that provides the following: Page 2 of 14 (1) Project name and number. (2) Date of the report. (3) Parcel number, address of the property, brief identification of all interests in the property appraised, and the name of the owner(s) including any tenant - owners. (4) Date(s) of the Contractor's inspection of the property with the owner or the owner's designated representative. Include the name of each owner or representative of an owner who accompanied the Contractor during the inspection and the interest held in the property or the representative capacity of each such person. (5) The Contractor's estimate of the fair market value of the entire parcel and the fair market value of the same interest in the land, as if vacant. (6) The limiting conditions of the appraisal, which may include assumptions (i) that the title is good and marketable, (ii) that no responsibility is assumed by the Contractor for legal matters, especially those affecting the title to the property, (iii) that the legal description of the property and the interest in the property to be appraised, furnished to the Contractor by the City, is correct, and (iv) that no survey of the property has been made. Any other appropriate assumption or limiting condition may be added if it has been specifically approved in writing by the City. (7) The certifications of the Contractor (i) that the Contractor personally made a thorough inspection of the property, (ii) that, to the best of the Contractor's knowledge and be] ief, Everything contained in the report is true and no relevant and important fact has been omitted, (iii) that neither the Contractor's employment nor compensation is contingent on the valuation reported, and (iv) that the Contractor has no past, present, or prospective interest (including that of real estate agent or broker) in the property, the parties involved, or any other interest that would conflict in any way with the services performed or the making of an impartial report. (8) A certification that, in the Contractor's opinion, the fair market value of the property is an amount to be stated as of the date of valuation. (9) The signature of the Contractor (b) The name and address of the owner of the property and the name and the address, if known, of any other party known or believed to hold a separate compensable interest in the property. (c) The street address and an accurate description of each parcel and all interests in the parcel appraised. The property description shall identify all conditions, restrictions, easements, servitudes, and reservations affecting the title. The property description shall specifically exclude and describe any separately held interest in the property that is to be acquired separately or as part of another parcel. The description shall also specifically exclude all separately held interests which are not to be acquired and will not be affected adversely by the City's project. If there are any separately held interests in a parcel, which are to be acquired with other interests in the same parcel, such as leaseholds, tenant - owned improvements, life estates, easements, and water, gas, oil, or mineral rights, a description of each such separate interest and the name of its owner shall be famished. (d) Off - record title information concerning interests or instruments that affect title, but are not of record, such as leases, options to renew a lease, contracts of sale, and other interests or rights of parties in possession. Such information shall be reported, and if available facts are sufficient, the Contractor's report shall be based on such additional title information and so noted in the appraisal report. Otherwise, the Contractor shall refer the matter to the City and defer completion of the appraisal until the question is resolved. (e) Basic property data including pertinent information with respect to such matters as (1) the environment and location of the property, (2) the zoning and any restrictive covenants, conditions, or servitudes affecting the available use or occupancy of the land, (3) the assessed value of the real property and the current annual real estate tax burden, (4) Page 3 of 14 the use and occupancy of the property at time of appraisal, (5) the public improvements, services, and utilities serving and providing access to the property, (6) the character, topography, dimensions, and area of the land, (7) the freedom of the property from special hazards, (8) the current rental and rental history of the property, if rented, (9) the estimated annual costs of ownership and for operation and maintenance of the property, and (10) a description of the buildings, structures, and other improvements, if any, including relevant information as to type of improvement, designed use, construction materials and finish, equipment, dimensions, floor area, age, condition, space or room arrangement, functional utility, and any other characteristics or attributes of the improvements germane to the value of the real property. The appraisal report shall contain a general sketch plat showing the shape and dimensions of the land, the location of the principal improvements on the land, the location of any easements in the land, and the abutting streets, alleys, or other public rights of way. The report shall also include such photographs, each clearly identified, as may be appropriate. (f) Report of any condition or occupancy of the property in violation of law that may affect the value of the property. (g) The Contractor's opinion as to the highest and best use for the property. The appraisal report shall also include the Contractor's opinions as to any other use(s) for which the property is reasonably suitable or adaptable. If the property is unused vacant land or the highest and best use is not self - evident or is found to differ significantly from the present use, the appraisal report shall contain the analyses by which the Contractor reached the conclusions as to the highest and best use of the property and as to its suitability or adaptability for any other use(s). The analysis of a potential use shall include consideration of relevant matters, such as the suitability of the location, the environment and the legal and physical attributes of the property for such use, the estimated cost, if any, of converting the property to such use, and the supply, sale price levels, and relative desirability of other properties that would compete for the same kind of use. The analysis of the property for the future use or uses found to be the highest and best use is part of the process of appraising the property and, therefore, may be included in the valuation analysis furnished in accordance with Paragraph 4(h) below. (h) The opinion of the Contractor as to the fair market value of the property. The appraisal report shall contain a description of the reasoning process used by the Contractor in reaching the conclusion as to value and all data and analyses needed to explain and support the valuation. The supporting data and analyses furnished in the appraisal report shall include the following: An analysis of the property, from the point of view of evaluating the effect of its characteristics and attributes on its value for the available use or uses for which the property is best suited. Particular attention shall be given to the characteristics of the property most relevant to its value, such as, in the case of an investment property, the income potential and the expenses of ownership, maintenance, and operation. (2) An identification of the most recent sale of each property appraised and any other sales of such property during the last five (5) years preceding the appraisal. Such sale(s) of the property appraised and all recent sales of comparable properties considered by the Contractor in forming the opinion(s) of fair market value shall be verified insofar as practical. The information furnished with respect to each such sale shall include, among other pertinent facts, the names of the grantor and grantee, the date of the sale, the sale price, any special terms or conditions or circumstances of the sale that affected the transaction, and a description of the property and its condition at time of sale in sufficient detail for use in making the appraisal. (3) The analyses that constitute the principal basis for the Contractor's opinion of the fair market value. The appraisal report shall contain the Contractor's evaluation with respect to previous sales of the property appraised and any recent offer of the owner to sell the property. The appraisal report shall also contain the Contractor's analysis of each comparable property and its sale in relation to the property appraised. The Contractor's analysis shall reflect appropriate allowances for the difference in the time of the sale of the comparable properties and the date of appraisal and the differences in the utility, desirability, and productivity of the properties that are pertinent to their relative value. The appraisal report shall contain a valuation data map showing the location of the property appraised and the comparable properties referred to in the appraisal report. Page 4 of 14 (4) All other information, analyses, and estimates considered by the Contractor to be relevant to the estimation of the fair market value of the property. (5) If the property appraised is part of a larger parcel in the same ownership or is less than the entire interest of the owner in the property, the appraisal report shall contain the Contractors opinion of just compensation for a taking of such property or interest, using the before - and -after method of valuation as interpreted under State law unless it is obvious that there would be no damages or benefits to the remaining property or interest of the owner. However, if the part or interest to be taken is such a small part of the whole property that the damages for the taking can be more accurately estimated directly, that method may be used if permitted under State law, without estimating the fair market value of the entire property of the owner. The foregoing opinions of the Contractor shall be supported in the report by the data and analyses by which the Contractor reached his/her conclusions. For information purposes, the appraisal report shall also contain the Contractor's estimates of the fair market value of the to -be- acquired part or interest as part of the whole property and the net damages or benefits to the remaining property of the owner. If in the opinion of the Contractor, acquisition of the part of, or interest in, the property proposed for acquisition would leave the owner with an uneconomic remnant, the Contractor shall furnish a separate estimate of the fair market value of a "parcel" comprising both the parcel proposed for acquisition and the uneconomic remnant. (A remainder parcel or interest shall be considered to be an uneconomic remnant if by itself it has little or no utility or value to the owner. (6) Such maps, plans, photographs, or other exhibits as are necessary to explain or illustrate the analyses of the Contractor. (7) The Contractor's evaluation of the indications of value deduced from the separate analyses of the various evidences of value and an explanation of how the Contractor reached his /her final conclusion as to the fair market value of the property. (i) The opinion of the Contractor as to the fair market value of the land, as if vacant. The valuation shall be for the same interest in the land as is to be acquired in the real property. The report shall contain information with respect to the available use or uses for which the land would be suitable if vacant, the opinion of the Contractor as to its highest and best use, and the Contractor's analysis of the evidences of value and of the use potential by which the Contractor reached his /her conclusions as to the highest and best use of the land and the land value. 0) A property analysis if the property is a commercial, industrial, institutional, governmental, or farm property that involves substantial quantities and kinds of fixtures such as machinery and equipment. Any building, structure, fixture, or other improvement, which would be real property if owned by the owner of the land, shall be considered to be real property (even if the improvement is the property of a tenant who has the right to remove it or the obligation to remove it at the expiration of the lease term). The property analysis must be approved by the City before the appraisal is completed and, as approved by the City, shall be included as an exhibit in the Contractor's report. The property analysis shall list, identify, and classify as to ownership and type of improvement, all items of physical property considered to be part of the real property. The property analysis shall also identify tangible personal property located on the premises to the extent reasonably necessary to prevent misunderstandings as to what is regarded as being real or personal property. Buildings, structures, fixtures and other improvements, including their accessories and spare parts, shall be identified and classified as to ownership and type of property as follows: (1) Ownership. (i) Owner of the land. (ii) Each tenant in occupancy. (iii) Each non - occupant owner of any fixtures or other improvements, or personal property on the premises. (2) Type of property. Page 5 of 14 (i) Building, structure, or fixed improvement. (ii) Building equipment, removable. (iii) Fixtures, classified as to whether economically removable for reuse, removable for salvage only, or irremovable. (iv) Personal property, identified as to types and approximate amounts, or otherwise, as needed to prevent misunderstandings as to the classification of any item. (v) If any building, structure, fixture or other improvement is not to be acquired, will not be adversely affected by the City's project, and will not be required by the City to be removed, such as a pipeline in an easement not to be acquired, such improvement shall be identified as excluded from the appraisal. (k) If machinery and equipment or other fixtures used in a trade or business, farm operation, or institutional or governmental function constitute part of the real property, the appraisal report shall contain a separate schedule, which provides separate estimates for each such item, as, prescribed below. If there is more than one owner of such items, a separate schedule shall be furnished for each owner. The information and conclusions to be furnished on each item are as follows: (1) Description of the item, including, as appropriate, the manufacturer, model and serial number, size or capacity, age and condition, and degree of obsolescence. Accessories and spare parts, special foundations, and power wiring and process piping generally shall be listed separately, following the listing of the item(s) to which they apply. (2) Estimate of the replacement cost installed of the item as listed and identified (excluding any elements listed separately). Separately identify the basis of estimated replacement cost (new or used). (3) The contributive (enhancement) value of the item to the fair market value of the real property as a whole. Estimated fair market value of the item for removal from the property at a purchaser's expense. Such value shall be considered to be the probable selling price if the item were offered for sale for removal from the property at the purchaser's expense, allowing a reasonable time to find a purchaser buying with knowledge of the uses and purposes for which it is adaptable and capable of being used, including salvage for serviceable components and scrap when it appears that will provide the highest value. The schedule(s) of estimates shall be consistent with the property analysis approved by the City, as provided in Paragraph 40). The Contractor is permitted to use the services of such technical specialists as may be needed to enable the Contractor to provide valid estimates and sound valuations. The schedule(s) shall be supported by an explanation of the procedures followed in gathering the necessary market information and technical data. The principal purpose of the Contractor's accompanying narrative, however, must be to explain his analyses and his evaluations of the dollar amount of the overall contribution of the machinery, equipment, and fixtures to the fair market value of the real property as a whole. The report shall contain any layout plans, sketches, or photographs that are reasonably necessary for locating or identifying the facilities or illustrating the Contractor's analyses. (1) If there are separately held interests in the real property to be acquired, such as easements, leaseholds, air rights, life estates, and oil, gas, or mineral rights, the property is to be valued on an undivided fee basis as applied in the State and not as a "sum of the interests" approach. The undivided fee basis as applied in the State does not ignore the value, which an encumbrance may add to or subtract from the reasonable fair market value of the property as a whole. Conversely, the rule contemplates that where the contract rental adds to the fair market value of the property, evidence of the rental is relevant in determining the value of the property. Where the contract rental is less than the fair rental, the fair rental and not the contract rental is the relevant evidence on the issue of value. ARTICLE 5. Services To Be Provided by City. The City agrees to furnish the Contractor the following: Page 6 of 14 (a) A map or plat, based on official records, of the property described in Article 1, showing the boundaries and dimensions of the parcels to be appraised. A number shall designate each parcel, and the parcel numbers shown on the Contractor's reports shall correspond to the parcel numbers shown on the map or plot. However, additional parcel numbers may be assigned by the Contractor for easements appraised separately or for additional parcels revealed while making the appraisals. The Contractor shall promptly advise the City of any such additions. (b) An ownership data report for each parcel. That report will show all estates and interests in the parcel as shown of record and consequently shall not be assumed to accurately define the interests to be appraised. (c) Legal advice, upon request of the Contractor, on legal matters affecting the appraisal of any property to be appraised. ARTICLE 6. Payment. In consideration of the services provided by the Contractor under this agreement, the City agrees to make payments to the Contractor upon the submission to the City of properly certified invoices, as follows: (a) For appraisal reports accepted by the City, and for all other services furnished in accordance with Article 3, except services furnished in connection with judicial proceedings under Paragraph 3(b), the updating of appraisals under Paragraph 3(c), and the valuation of reservations of rights in owners under Paragraph 3(d), the lump sum of $12,000.00 dollars, which shall constitute full payment to the Contractor for all of such services and for all supplies, materials, and equipment used or furnished by the Contractor and all expenses incurred by the Contractor in connection with the performance of such services. (b) For services furnished by the Contractor in connection with judicial proceedings as provided in Paragraph 3(b) (except services as an expert witness in such a proceeding), the updating of appraisals as provided in Paragraph 3(c), and the valuation of reservations of rights in owners as provided in Paragraph 3(d), $165.00 dollars per hour or fraction of an hour actually engaged in performing the services, including travel time. All expenses of the Contractor, including travel expense and subsistence, shall be borne by the Contractor. (c) For services as an expert witness for the City in judicial proceedings as provided in Paragraph 3(b), the Contractor and the City hereby agree that the fair and reasonable compensation for the Contractor's services shall be $1,200.00 dollars per day and $700.00 per half day for each day's attendance in court. ARTICLE 7. Agreements of Contractor. As an inducement to the execution of this agreement by the City and in consideration of the agreements to be performed by the City, the Contractor agrees that: (a) Qualifications. The Contractor is qualified to perform the services to be furnished under this agreement and is permitted by law to perform such services, and all personnel engaged in the work shall be qualified and so permitted to do the work they perform. Submitted as part of the proposal was a statement by the Contractor, certified by the Contractor to be true and correct, setting forth the Contractor's technical qualifications, general appraisal experience, specific experience in appraising properties of the type involved in this agreement, the courts in which he or she has testified as an expert witness, and other information pertinent to establishing his or her technical qualifications. (b) Solicitation of Agreement. The Contractor has not employed any person to solicit this agreement and has not made and will not make any payment or any agreement for the payment of any commission, percentage, brokerage, contingent fee, or other compensation in connection with the procurement of this agreement. (c) Interest of Contractor and Contractor's Employees. The Contractor does not have any interest (including that of real estate agent or broker), direct or indirect, present or prospective, in any property described in Article 1 or in its sale, or any other interest, whether or not in connection with the property, which would conflict in any manner or degree with the performance of the services and the submission of impartial reports, and has not employed and will not employ, in connection with the services to be furnished under this agreement, any person having any such interest. Until the property is acquired by the City or excluded from its project by resolution of its governing body, the Contractor and any employees of the Contractor, so long as they are employed by the Contractor, will not acquire any such interests and will not, for their own account or for other than the City, negotiate for any of the property, perform services in connection with the property, or testify voluntarily as a witness in a condemnation or other proceeding with respect to the property. Page 7 of 14 (d) Services To Be Confidential. All services, including reports, opinions, and information, to be furnished under this agreement are confidential and shall not be divulged, in whole or in part, to any person, other than to duly authorized representatives of the City, without prior written approval of the City, except by testimony under oath in a judicial proceeding or as otherwise required by law. The Contractor shall take all necessary steps to ensure that no member of the Contractor's staff or organization divulges any such information except as may be required by law. (e) Facilities and Personnel. The Contractor has and will continue to have proper facilities and personnel to perform the services and work agreed to be performed. If the Contractor proposes to employ any person or persons to make any appraisals of machinery and equipment or other specialized elements or attributes of a property appraised under this agreement, the employment of such person or persons for such purpose shall not place the City under any obligation to such employee, nor relieve the Contractor of full responsibility for the faithful performance of the services to be furnished under this agreement. (f) Equal Employment Opportunity. During the performance of this agreement: (1) The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause. (2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (g) Assignment. The Contractor's rights, obligations, and duties under this agreement shall not be assigned in whole or in part, but this shall not prohibit the assignment of the proceeds due under this agreement to a bank or financial institution. This agreement may be assigned by the City to any corporation, agency, or instrumentality having authority to accept the assignment. (h) Subcontracting. None of the work or services covered by this agreement shall be subcontracted without the prior approval of the City. (i) Records. The Contractor shall maintain records of all details with respect to the services to be performed under this agreement, including one complete copy of each appraisal report and related notes, for three (3) years after delivering the report or until the property is acquired by the City or the acquisition is abandoned, whichever is later. 0) Affidavits of Compliance. The Contractor will, if requested by the City, furnish the City affidavits certifying compliance with the provisions of this Article 7. ARTICLE 8. Changes. The City, by written notice to the Contractor, may modify the scope or quantity of services to be furnished under this agreement. If such changes cause an increase or decrease in the amount of services to be provided by the Contractor or in the time required for their performance, equitable adjustment shall be made in the provisions of this agreement for payments to the Contractor or for the time for performance of the services or for both, and this agreement shall be modified by agreement of the parties accordingly. ARTICLE 9. Termination of Agreement for Cause. If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his or her obligations under this agreement, or if the Contractor shall violate any of the provisions of this agreement, the City may upon written notice to the Contractor terminate the right of the Contractor to proceed under this agreement or with such part or parts of the agreement as to which there has been default, and may hold the Contractor liable for any damages caused to the City by reason of such default and termination. In the event of such termination, any completed reports prepared by the Contractor under this agreement shall, at the option of the City, become its property and the Contractor shall be entitled to receive equitable compensation for any work completed to Page 8 of 14 the satisfaction of the City. The Contractor, however, shall not thereby be relieved of liability to the City for damages sustained by the City by reason of any breach of the agreement by the Contractor, and the City may withhold any payments from the Contractor for the purpose of setoff until such time as the amount of damages due the City from the Contractor is determined. The Contractor shall not be held liable for damages under this Article solely for reasons of delay if the delay is due to causes beyond his or her control and without his or her fault or negligence, but this shall not prevent the City from terminating this agreement because of such delay. ARTICLE 10. Interest of Members of City. No member of the City shall participate in any decision relative to this agreement affecting, directly, or indirectly, his or her personal interests. No such member and no other officer, agent or employee of the City having any responsibility or function in connection with this agreement shall have any private interest, direct or indirect, in this agreement or the proceeds of this agreement. ARTICLE 11. Officials Not To Benefit. No Member of or Delegate to the Congress of the United States of America, and no Resident Commissioner, shall be admitted to any share or part of this agreement or to any benefit to arise from the same. ARTICLE 12. Notices. Any action by the City under this agreement may be taken by the City of Pueblo, or such other person(s) as the City may, by written notice to the Contractor, designate for such purpose. All notices to the Contractor shall be considered to be properly given if mailed to the address specified below, or delivered personally to the Contractor. All notices or other papers given to the City shall be considered to be sufficiently given if mailed, postage prepaid to Scott Hobson at the City of Pueblo, Planning Department, 211 East D Street, Pueblo, Colorado 81003 or to such other representative or address as the City may designate to the Contractor in writing. ARTICLE 13. State - Imposed Mandates Prohibiting Illegal Aliens From Performing Work (a) At or prior to the time for execution of this Agreement (which may be referred to in this section as this "Contract "), Consultant (which may be referred to in this section as "Contractor ") shall submit to the Purchasing Agent of City its certification that it does not knowingly employ or contract with an illegal alien who will perform work under this Contract and that the Contractor will participate in either the "E- Verify Program" created in Public Law 208, 104" Congress, as amended and expanded in Public Law 156, 108' Congress, as amended, that is administered by the United States Department of Homeland Security or the "Department Program" established pursuant to §8- 17.5- 102(5)(c) C.R.S. that is administered by the Colorado Department of Labor and Employment in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under this Contract. (b) Contractor shall not: (I) Knowingly employ or contract with an illegal alien to perform work under this contract; (II) Enter into a contract with a subconsultant that fails to certify to Contractor that the subconsultant shall not knowingly employ or contract with an illegal alien to perform work under this Contract. (c) The following state - imposed requirements apply to this contract: (1) The Contractor shall have confirmed the employment eligibility of all employees who are newly hired for employment to perform work under this Contract through participation in either the E- Verify Program or Department Program. (11) The Contractor is prohibited from using either the E- Verify Program or Department Program procedures to undertake pre - employment screening of job applicants while this Contract is being performed. (III) If the Contractor obtains actual knowledge that a subcontractor or subconsultant performing work under this Contract knowingly employs or contracts with an illegal alien, the Contractor shall be required to: A. Notify the subconsultant and the Client's Purchasing Agent within three (3) days that the Contractor has actual knowledge that the subcontractor /subconsultant is employing or contracting with an illegal alien; and Page 9 of 14 B. Terminate the subcontract with the subcontractor /subconsultant if within three (3) days of receiving the notice required pursuant to subparagraph (c)(III)A. above the subcontractor /subconsultant does not stop employing or contracting with the illegal alien; except that the Contractor shall not terminate the contract with the subcontractor /subconsultant if, during such three (3) days, the subcontractor /subconsultant provides information to establish that the subcontractor /subconsultant has not knowingly employed or contracted with an illegal alien. (IV) The Contractor is required to comply with any reasonable request by the Colorado Department of Labor and Employment (hereinafter referred to as "CDLE ") made in the course of an investigation that CDLE is undertaking pursuant to its authority under §8 -17.5- 102(5), C.R.S. (d) Violation of this Section 12 by the Contractor shall constitute a breach of contract and grounds for termination. In the event of such termination, the Contractor shall be liable for Client's actual and consequential damages. (e) As used in this Section 12, the terms "subcontractor" and "subconsultant" shall mean any subconsultant or subcontractor of Consultant rendering services within the scope of this Agreement. ARTICLE 14. PERA Liability. The Contractor shall reimburse the City for the full amount of any employer contribution required to be paid by the City of Pueblo to the Public Employees' Retirement Association ( "PERA ") for salary or other compensation paid to a PERA retiree performing contracted services for the City under this Agreement. The Contractor shall fill out the questionnaire attached as Exhibit C and submit the completed form to City as part of the signed Agreement. ARTICLE 15. Sole Source Government Contracts; Limitations Upon Campaign Contributions. (a) Section 15 of Article XXVIII of the Colorado Constitution is hereby incorporated into this agreement by reference. Sections 15 and 17 of Article XXVIII of the Colorado Constitution provide as follows: Section 15: Because of a presumption of impropriety between contributions to any campaign and sole source government contracts, contract holders shall contractually agree, for the duration of the contract and for two years thereafter, to cease making, causing to be made, or inducing by any means, a contribution, directly or indirectly, on behalf of the contract holder or on behalf of his or her immediate family member and for the benefit of any political parry or for the benefit of any candidate for any elected office of the state or any of its political subdivisions. Section 17: (1) Every sole source government contract by the state or any of its political subdivisions shall incorporate article XXVIII, section 15, into the contract. Any person who intentionally accepts contributions on behalf of a candidate committee, political committee, small donor committee, political party, or other entity, in violation of section 15 has engaged in corrupt misconduct and shall pay restitution to the general treasury of the contracting governmental entity to compensate the governmental entity for all costs and expenses associated with the breach, including costs and losses involved in securing a new contract if that becomes necessary. If a person responsible for the bookkeeping of any entity that has a sole source contract with a governmental entity, or if a person acting on behalf of the governmental entity, obtains knowledge of a contribution made or accepted in violation of section 15, and that person intentionally fails to notify the secretary of state or appropriate government officer about the violation in writing within ten business days of learning of such contribution, then that person may be contractually liable in an amount up to the above restitution. (2) Any person who makes or causes to be made any contribution intended to promote or influence the result of an election on a ballot issue shall not be qualified to enter into a sole source government contract relating to that particular ballot issue. (3) The parties shall agree that if a contract holder intentionally violates section 15 of section 17(2), as contractual damages that contract holder shall be ineligible to hold any sole source government contract, or public employment with the state or any of its political subdivisions, for three years. The Page 10 of 14 governor may temporarily suspend any remedy under this section during a declared state of emergency. (4) Knowing violation of section 15 or section 17(2) by an elected or appointed official is grounds for removal from office and disqualification to hold any office of honor, trust or profit in the state, and shall constitute misconduct or malfeasance. (5) A registered voter of the state may enforce section 15 or section 17(2) by filing a complaint for injunctive or declaratory relief or for civil damages and remedies, if appropriate, in the district court. (b) This section applies only to sole source government contracts and does not apply to any contract which used a public and competitive bidding process in which the City solicited at least three bids prior to awarding the contract. (c) Contractor certifies, warrants, and agrees that it has complied and will comply with Colorado Constitution Article XXVIII, including but not necessarily limited to the following prohibitions and obligations: (1) If during the term of the contract, contractor holds sole source government contracts with the State of Colorado and any of its political subdivisions cumulatively totaling more than $100,000 in a calendar year, then for the duration of this contract and for two years after, contractor will not make, cause to be made, or induce by any means a contribution, directly or indirectly, on behalf of contractor or contractor's immediate family member(s) for the benefit of any political party or for the benefit of any candidate any elected office of the State or any of its political subdivisions; and (2) Contractor represents that contractor has not previously made or caused to be made, and will not in the future make or cause to be made, any contribution intended to promote or influence the result of a ballot issue election related to the subject matter of this contract; and (3) Contractor will satisfy contractor's obligations to promptly report to the Colorado Department of Personnel & Administration ( "CDPA ") information included in the CDPA's "Sole Source Government Contract Summary" and "Contract Holder Information" forms regarding this contract and any other sole source government contracts to which contractor is a party, and shall contemporaneously provide a copy of such report(s) to City's Purchasing Agent; and (4) Contractor understands that any breach of this section or of Contractor's responsibilities under Colorado Constitution Article XXVIII may result in either contractual or constitutionally mandated penalties and remedies; and (5) A Contractor that intentionally violates Colorado Constitution Article XXVIII, Section 15 or 17(2), shall be ineligible to hold any sole source government contract, or public employment with the state or any of its political subdivisions for three years; and (6) By execution of this contract, Contractor hereby confirms it is qualified and eligible under such provisions to enter into this contract. (d) For purposes of this section, the term "contractor" shall include persons that control ten percent or more shares or interest in contractor, as well as contractor's officers, directors, and trustees. The term "immediate family member" shall include a spouse, child, spouse's child, son -in -law, daughter -in -law, parent, sibling, grandparent, grandchild, stepbrother, stepsister, stepparent, parent -in -law, brother -in -law, sister -in -law, aunt, niece, nephew, guardian, or domestic partner. All other terms and phrases used in this section shall have the meanings defined in Article XXVIII of the Colorado Constitution. (e) In the event any provision of Article XXVIII of the Colorado Constitution is held to be unconstitutional or otherwise invalid by a court of competent jurisdiction in anon- appealable action, has been repealed retroactively or otherwise found to not apply to this contracf or agreement, then the corresponding requirement or requirements of this Page 11 of 14 section shall have no further force and effect, and shall not constitute a requirement of this contract, as of the date of such holding, declaration, repeal or determination. IN WITNESS WHEREOF, the City and the Contractor have executed this agrient on or as of the date first above written. e (�actor) ' jr, N/LL- 0VrX41J 1A- (Street Address) SCrw/ 4''J, Pc((Aco Co no (City, State, Zip Code) City of Pueblo, Colorado (City) By: Vera Drtegon President of City Council (Title) Page 12 of 14 EXHIBIT A of Sample Professional Services Aureement HONOR FARM PRIVATELY OWNED PROPERTIES INCLUDES A TOTAL OF NINE PROPERTIES ACRES PARCEL NO. BONACCORSI TRUST 140.10 500000006 TENBAR INC 40.00 500000004 ZIMMERMAN, TRACIE RAE; SNYDER BRIAN ALAN; MATOTT DENISE MARLENE; PLYMELL PEGGY LAVERNE; CORREA PATRICIA LAVELLE JABER; JABER ROBERT RALPH; DENISE MATOTT 40.00 500000016 KORB ROBERT M TR; WAGGONER CONRAD 80.00 517000005 240 LLC; SALKIN TRUST 40.00 517000004 GILBERT LEE ANN 40.00 517000003 Three (3) mutually agreed upon parcels included from the parcels listed below that are representative lots within the Shepard Heights Subdivision (See Exhibit A -4, All parcels not listed with owners name are owned by Najar Bernadette Marie T P Tr; Peaker George Howard , rr; Rush Hannah Ruth Tr; Rush David Earl Tr ; Rush Hanna Ruth Tr; Erickson Donna L Tr; Salkin Stephen L Tr. Peaker Salkin E J Tr; Hunt Cynthia G; Peaker Don L; Sullivan Dorothy L; Salkin Living Trust) NAJAR BERNADETTE MARIE T P TR; PEAKER GEORGE 2.53 521008017 HOWARD TR; RUSH HANNAH RUTH TR; RUSH DAVID EARL 2.53 521001001 TR; RUSH HANNA RUTH TR; ERICKSON DONNA L TR; .365 521007011 SALKIN STEPHEN L TR; PEAKER SALKIN E J TR; HUNT .37 521007031 CYNTHIA G; PEAKER DON L; SULLIVAN DOROTHY L; .43 521007009 SALKIN LIVING TRUST .22 521007007 1.16 521002032 .99 521002030 .22 521002031 2.56 521004005 2.54 521006016 2.56 521005015 2.55 521009020 2.61 521010019 2.56 521011018 2.58 521012014 2.56 521016024 2.61 521015023 1.33 521014035 1.24 521014022 2.60 521013021 2.55 521017029 2.60 521018028 2.64 521019027 2.72 521020025 HOUSMAN FAMILY CORP 2.54 521003004 WRIGHT MAGGIE; FRED ERB .074 521002003 .716 521007006 .215 521007035 PALUMBO RACINE W +ANGELO F S .073 521007013 MOURNING ROBERT P .144 521002002 WANDREY LAURA M .143 521007012 CITY OF PUEBLO - LAND NORTH OF THE SOUTH BANK OF ACRES PARCEL NO. PEST HOUSE GULCH 192.00 500000021 WASTEWATER PLANT EXPANSION ACRES PARCEL NO. BELTRAMO RLLP 45.70 432417004 CITY MUNICIPAL CAMPUS EXPANSION ROMERO LARRY + DEBBIE L .16 536407011 .16 536407001 Page 13 of 14 COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION SUPPLEMENTAL QUESTIONNAIRE TO BE ANSWERED BY ANY BUSINESS PERFORMING SERVICES FOR THE CITY OF PUEBLO Pursuant to section 24 -51- 1101(2), C.R.S., salary or other compensation from the employment, engagement, retention or other use of a person receiving retirement benefits (Retiree) through the Colorado Public Employees Retirement Association (PERA) in an individual capacity or of any entity owned or operated by a PERA Retiree or an affiliated parry by the City of Pueblo to perform any service as an employee, contract employee, consultant, independent contractor, or through other arrangements, is subject to employer contributions to PERA by the City of Pueblo. Therefore, as a condition of contracting for services with the City of Pueblo, this document must be completed, signed and returned to the City of Pueblo: (a) Are you, or do you employ or engage in any capacity, including an independent contractor, a PERA Retiree who will perform any services for the City of Pueblo? Yes_, No;K ( Must sign below whether you carver "yes" or "no ") (b) If you answered "yes" to (a) above, please answer the following question: Are you 1) an individual, 2) sole proprietor or partnership, or 3) a business or company owned or operated by a PERA Retiree or an affiliated party? Yes _, No. If you answered "yes" please state which of the above listed entities (1, 2, or 3) best describes your business: (c) If you answered "yes" to both (a) and (b), please provide the name, address and social security number of each such PERA Retiree. Address Social Security Number Name Social Security Number (If more than two, please attach a supplemental list) If you answered "yes" to both (a) and (b), you agree to reimburse the City of Pueblo for any employer contribution required to be paid by the City of Pueblo to PERA for salary or other compensation paid to you as a PERA Retiree or paid to any employee or independent contractor of yours who is a PERA Retiree performing services for the City of Pueblo. You further authorize the City of Pueblo to deduct and withhold all such contributions from any moneys due or payable to you by the City of Pueblo under any current or future contract or other arrangement for services between you and the City of Pueblo. Failure to accurately complete, sign and return this document to the City of Pueblo may result in your being denied the privilege of doing business with the City of Pueblo. 20 E-"T . By: — Name: Title: For purposes of responding to question (h) shove, an "affiliated parry" includes (1) any person who is the named beneficiary or cobeneficiary on the PERA account of the ?ERA Retiree; (2) any person who is a relative of the PERA Retiree by blood or adoption to and including parents, siblings, half - siblings, children, and grandchildren; (3) any person who is a relative of the PERA Retiree by marriage to and including spouse, spouse's parents, stepparents, stepchildren, stepsiblings, and spouse's siblings; and (4) any person or entity with whom the ?ERA Retirce has an agreement to share or otherwise profit fromthe performance of services for the City of Pueblo by the PERA Retiree other than the PERA Retiree's regular salary or compensation. Page 14 of 14 AMENDMENT NO 1 TO CONTRACT THIS AMENDMENT NO 1 to Contract is made and entered into as of the 1 day of January, 2011 between Pueblo, a Municipal Corporation (the "City ") and I.J Hill Appraisal Services for the performance of appraisals. WHEREAS, City and I.J Hill Appraisal Services for the performance of appraisals heretofore entered into a Contract dated June 22, 2009 (the "Agreement "), and WHEREAS, Request for Proposals provided that the term of the Agreement could be extended for an additional penod of one (1) year upon mutual agreement of the City and the Contractor; and I.J Hill Appraisal Services WHEREAS, the Parties wish to extend the Agreement for the additional penod, subject to all terms and conditions of the Agreement; NOW, THEREFORE, in consideration of the foregoing and the mutual terms and conditions set forth herein, the parties agree as follows 1 The Parties hereby agree to extend the term for an additional one (1) year, from January 1, 2011 through December 31, 2011, upon the same terms and conditions. 2 Except as expressly modified by this Amendment No 1, the Agreement shall remain in full force and effect. Except as expressly modified, any obligations remaining to be performed under the onginal Agreement by either party, are not waived or excused in any manner, but shall be fully performed in accordance with the terms and conditions of the Agreement as it existed prior to this Amendment No 1 IN WITNESS WHEREOF, I.J Hill Appraisal Services, and City have extended this Amendment No 1 to the Agreement as of the date first above wntten. ATTEST PUEBLO, a Municipal Corporation By City lerk Pr siden of the City Council APPROVED AS TO FORM Consultant. I.J Hill Appraisal Se es • By City Attorn -� e • Tit P /J)L%✓