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Home My WebLink AboutC10-207 Asset Valuation Advisors, LLPF W CONSULTING AGREEMENT BETWEEN EAGLE COUNTY AND ASSET VALUATION ADVISORS, LLP This Consulting Agreement ("Agreement") dated as of this ~~day of ~~~, 2010, is between the County of Eagle, State of Colorado, a body corporate and politic, by and through its Board of County Commissioners ("County"), and Asset Valuation Advisors, LLP, a consulting firm with its principal place of business in Greenwood Village, Colorado, with a mailing address of 5300 DTC Parkway, Suite 260, Greenwood Village, Colorado 80111 ("Consultant"). WHEREAS, the County is in need of a company to provide the services outlined in Section 1.1 hereunder: and WHEREAS, Consultant has represented that it has the experience and knowledge in the subject matter necessary to carry out the services outlined in Section 1.1 hereunder; and WHEREAS, County wishes to hire Consultant to perform the tasks associated with such services outlined in Section 1.1 hereunder; and WHEREAS, County and Consultant intend by this Agreement to set forth the scope of the responsibilities of the Consultant in connection with the services and related terms and conditions to govern the relationship between Consultant and County in connection with the services. NOW, THEREFORE, based upon the representations by Consultant set forth in the foregoing recitals, for good and valuable consideration, including the promises set forth herein, the parties agree to the following: 1. Services Provided: 1.1 The Consultant will provide the consulting services as more particularly set forth in Consultant's proposal dated May 27, 2010, attached hereto as Exhibit "A," and incorporated herein by this reference (hereinafter called "Consulting Services"). The Consulting Services are generally described as providing professional appraisals for two taxable parcels of real property located in Eagle County (the "Subject Properties") and in addition, if necessary, providing testimony for the district court tax appeal hearings. To the extent the terms and conditions of this Agreement may conflict with Exhibit "A," the terms and conditions of this Agreement shall control. 1.2 The Consultant agrees that Consultant will not enter into any consulting arrangements with third parties that will conflict in any manner with the Consulting Services. 1.3 Consultant has given the County a proposal for performing the Services and represented that it has the expertise and personnel necessary to properly and timely perform the Services. Consultant has also represented that Marcus B. Scott will be preparing the appraisals and other trial preparation services under this Agreement. 1.4 In order to facilitate Consultant's provision of the Consulting Services, County will coordinate the date(s) and time(s) that Consultant will be granted access to the properties for the purpose of conducting inspections, and will provide additional needed information including existing surveys, boundary maps and/or legal descriptions of the properties. 2. Term of Agreement: 2.1 This Agreement shall commence upon execution of this Agreement by both parties and, subject to the provisions of Section 2.2 hereof, shall continue in full force and effect until the Consulting Services have been completed. 2.2 This Agreement may be terminated by either party for any other reason at any time, with or without cause, and without penalty whatsoever therefore. 2.3 In the event of any early termination of this Agreement Consultant shall be compensated for Consulting Services then completed, plus approved expenses. 3. Independent Contractor: 3.1 With respect to the provision of the Consulting Services hereunder, Consultant acknowledges that Consultant is an independent contractor providing Consulting Services to the County. Nothing in this Agreement shall be deemed to make Consultant or any of Consultant's principles or employees an agent, employee, partner or representative of County. 3.2 The Consultant shall not have the authority to, and will not make any commitments or enter into any agreement with any party on behalf of County without the written consent of the Board of County Commissioners. 3.3 The Consultant will maintain liability, unemployment and workman's compensation insurance on hislher behalf, as necessary. 4. Remuneration: 4.1 For the Consulting Services provided hereunder, County shall pay to the Consultant a total of $14,500 for Consultant's appraisal reports for the Subject Properties in accordance with the terms of Exhibit "A." Consultant shall also be paid at a rate of $150 per hour for formal review of and preparation of rebuttal materials regarding the property owner's appraisal if so requested by the County. Consultant's fee shall be $250 per hour for pre-trial conferences, actual testimony, depositions and preparation/waiting time if such testimony from Consultant is needed. Fees will be paid within thirty (30) days of receipt of a proper and accurate invoice from Consultant respecting Consulting Services. The invoice shall include a description of services performed. Upon request, Consultant shall provide County with such other supporting information as County may request. 4.2 County will not withhold any taxes from monies paid to the Consultant hereunder and Consultant agrees to be solely responsible for the accurate reporting and payment of any taxes related to payments made pursuant to the terms of this Agreement. 4.3 Notwithstanding anything to the contrary contained in this Agreement, no charges shall be made to the County nor shall any payment be made to the Consultant in excess of the amount for any work done without the written approval in accordance with a budget adopted by the Board in accordance with provisions of the Colorado Revised Statutes. Moreover, the parties agree that the County is a governmental entity and that all obligations beyond the current fiscal year are subject to funds being budgeted and appropriated. 5. Ownership of Documents: All documents (including electronic files) which are obtained during or prepared in the performance of the Services shall remain the property of the County and are to be delivered to County before final payment is made to Consultant or upon earlier termination of this Agreement. 6. Indemnification: Within the limits allowed by law, Consultant shall indemnity County for, and hold and defend the County and its officials, boards, officers, principals and employees harmless from, all costs, claims and expenses, including reasonable attorney's fees, arising from claims of any nature whatsoever made by any person in connection with the negligent acts or omissions of, or presentations by the Consultant in violation of the terms and conditions of this Agreement. This indemnification shall not apply to claims by third parties against the County to the extent that the County is liable to such third parry for such claim without regard to the involvement of the Consultant. 7. Consultant's Professional Level of Care: Consultant shall be responsible for the completeness and accuracy of the Consulting Services, including all supporting data and other documents prepared or compiled in performance of the Services, and shall correct, at its sole expense, all significant errors and omissions therein. The fact that the County has accepted or approved the Consulting Services shall not relieve Consultant of any of its responsibilities. Consultant shall perform the Consulting Services in a skillful, professional and competent manner and in accordance with the standard of care, skill and diligence applicable to consultants, with respect to similar services, in this area at this time. 8. No Assignment: The parties to this Agreement recognize that the Consulting Services to be provided pursuant to this Agreement are professional in nature and that in entering into this Agreement, County is relying upon the professional services and reputation of Consultant and its approved subcontractors. Therefore, neither Consultant nor its subcontractors may assign its interest in this Agreement or in its subcontract, including the assignment of any rights or delegation of any obligations provided therein, without the prior written consent of County, which consent County may withhold in its sole discretion. Except as so provided, this Agreement shall be binding on and inure to the benefit of the parties hereto, and their respective successors and assigns, and shall not be deemed to be for the benefit of or enforceable by any third party. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Agreement, 9. Notices: 9.1 Any notice and all written communications required under this Agreement shall be given in writing by personal delivery, facsimile or U.S. Mail to the other party at the following addresses: (a) Bryan Treu Eagle County Attorney 500 Broadway P.O. Box 850 Eagle, CO 81631 (970) 328-8685 (p) (970) 328-8699 (f) (b) Marcus B. Scott MAI Certified General Appraiser Asset Valuation Advisors 5300 DTC Parkway, Suite 260 Greenwood Village, CO 80111 (303) 858-8800 (303) 858-8885 9.2 Notices shall be deemed given on the date of delivery; on the date the facsimile is transmitted and confirmed received or, if transmitted after normal business hours, on the next business day after transmission, provided that a paper copy is mailed the same date; or three days after the date of deposit, first class postage prepaid, in an official depository of the U.S. Postal Service. 10. Jurisdiction and Confidentiality: 10.1 This Agreement shall be interpreted in accordance with the laws of the State of Colorado and the parties hereby agree to submit to the jurisdiction of the courts thereof. Venue shall be in the Fifth Judicial District for the State of Colorado. 10.2 The Consultant and County acknowledge that, during the term of this Agreement and in the course of the Consultant rendering the Consulting Services, the Consultant may acquire knowledge of the business operations of County to the point .that the general method of doing business, the pricing of products the lists of customers and other aspects of the business affairs of County will become generally known and the Consultant shall not disclose, use, publish or otherwise reveal, either directly or through another, to any person, firm or corporation, any knowledge, information or facts concerning any of the past or then business operations, pricing or sales data of County and shall retain all knowledge and information which he has acquired as the result of this Agreement in trust in a fiduciary capacity for the sole benefit of County, its successors and assigns during the term of this Agreement and for a period of five (5) years following the termination of this Agreement. 11. Provision Mandated by C.R.S. ~ 8-17.5-101: PROHIBITIONS ON PUBLIC CONTRACT FOR SERVICES If Contractor/Consultant has any employees or subcontractors, Contractor/Consultant shall comply with C.R.S. § 8-17.5-101, et seq., regarding Illegal Aliens -Public Contracts for Services, and this Contract. By execution of this Contract, Contractor/Consultant certifies that it does not knowingly employ or contract with an illegal alien who will perform under this Contract and that Contractor/Consultant will participate in the E-verify Program or other Department of Labor and Employment program ("Department Program") in order to confirm the eligibility of all employees who are newly hired for employment to perform work under this Contract. 11.1 Contractor/Consultant shall not: A. Knowingly employ or contract with an illegal alien to perform work under this contract for services; or B. Enter into a contract with a subcontractor that fails to certify to the Contractor/Consultant that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under the public contract for services. 11.2 Contractor/Consultant has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under this Contract through participation in the E- verify Program or Department Program, as administered by the United States Department of Homeland Security. Information on applying for the E-verify program can be found at: http://www.dhs.~prevprot/pro~rams/gc 1185221678150.shtm 11.3 The Contractor/Consultant shall not use either the E-verify program or other Department Program procedures to undertake pre-employment screening of job applicants while the public contract for services is being performed. 11.4 If the Contractor/Consultant obtains actual knowledge that a subcontractor performing work under the public contract for services knowingly employs or contracts with an illegal alien, the Contractor/Consultant shall be required to: A. Notify the subcontractor and the County within three days that the Contractor/Consultant has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and B. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to subparagraph (i) of the paragraph (D) the subcontractor does not stop employing or contracting with the illegal alien; except that the Contractor/Consultant shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. 11.5 The Contractor/Consultant shall comply with any reasonable request by the Department of Labor and Employment made in the course of an investigation that the department is undertaking pursuant to its authority established in C.R.S. § 8-17.5-102(5). 11.6 If a Contractor/Consultant violates these prohibitions, the County may terminate the contract for a breach of the contract. If the contract is so terminated specifically for a breach of this provision of this Contract, the Contractor/Consultant shall be liable for actual and consequential damages to the County as required by law. 11.7 The County will notify the office of the Colorado Secretary of State if Contractor/Consultant violates this provision of this Contract and the County terminates the Contract for such breach. 12. Miscellaneous: 12.1 This Agreement constitutes the entire Agreement between the parties related to its subject matter. It supersedes all prior proposals, agreements and understandings. 12.2 This Agreement is personal to the Consultant and may not be assigned by Consultant. 12.3 This Agreement dues not and shall not be deemed to confer upon or grant to any third party any right enforceable at law or equity arising out of any term, covenant, or condition herein or the breach thereof // SIGNATURE PAGE TO FOLLOW // IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. COUNTY OF EAGLE, STATE OF COLORADO, by and through its Board of County Commissioners By: Sara J. Fisher, Chairman ATTEST: Teak J. Simonton, Clerk to the Board of County Commissioners ASSET VALUATION ADVISORS, LLP By: Gl~la~o~ Marcus B. Scott, MAI STATE OF C~~~~ ~~ ) SS. COUNTY OF ~~G~C~'-Cf ~-~.% ) The foregoing instrument was acknowledged before me by ~~ P ~Cu.S ~ ~ ,this ~~ day of ~1~{V(; , 2010. ~C~ y com is 'o e pires: ~ (~ t,~~ Nota Public Asset Valuation Advisors, LLP May 27, 2010 Ms. Christina C. Hooper Eagle County Attorney's Office P.O. Box 850 500 Broadway Eagle, CO 81631 RE: Traer Creek Plaza (R053313) and Traer Creek Land (R053150) Avon, CO Dear Ms. Hooper: ~A~ 2 ~ 210 'C`~ P~®~NEY As we discussed I am forwarding to you a proposal for appraisal services in connection with the above referenced properties. The following is a summary of our standard appraisal contract. This will outline the pertinent details of the assignment and the corresponding time and fee quotes. Subject Properties: Traer Creek Plaza, 101 Fawcett Road, Avon, Colorado consisting of a two story, multi-tenant, office and retail property containing 50,000± square feet constructed in 2006 over a metro district owned parking garage on a 3.9 acre commercial site. Parce12103-074-09-002. The owner of the property is Traer Creek-L2 LLC. Intended Use of the Appraisal: Traer Creek Land, Avon, Colorado consisting of 111.22 acres of vacant land zoned for mixed use development. Parcel 2103-073-30-001. The owner of the property is Traer Creek-RP LLC. The intended use of these appraisal is for ad valorem tax purposes and, as such, the appraisal would report the value of the properties as of June 30, 2008 for the 2009 tax year. It is our understanding that an appeal is pending although a hearing date has not yet been set. The final report will contain a statement that the report may be used for ad valorem tax .assessment purposes, although any other use including acquisition disposition, mortgage financing, syndication or condemnation is not authorized. 5300 DTC Parkway, Suite 260 • Greenwood Village, CO 80111 ~ 303-858-8880 • www.avallp.com Ms. Christina C. Hooper May 27, 2010 Page 2 Type and Extent of Analysis: Given the intended use of the report all three traditional approaches to value, i.e., cost, income and sales comparison, would be applied to the office/retail property. The vacant land parcel would be valued via a sales comparison approach. Recognizing the statutory requirements of tax assessment valuation in Colorado, the appraisals will be in conformance with the guidelines of the Division of Property Taxation (DPT). Type of Report: Appraisals can be reported in one of three formats; self- contained, summary or restricted-use. Given the intended use of the report and the type of improvements to be valued we recommend a summary format and would provide three original copies of the final appraisal report for each property. Time and Fee Quotes: The fee for the two appraisals presented in summary format will be $8,500 for the Traer Creek Plaza and $6,000 for Traer Creek Land. These fees are inclusive of all travel expenses relating to the subject property. Delivery of the report would be in approximately eight weeks after the date of inspection, which would be scheduled for mid June 2010. Review and Rebuttal: These fees do not include allowances for formal review or rebuttal of the property owner's appraisal. However, I can examine those reports upon request and provide such services on an hourly basis billed at the rate of $150 per hour. Testimony: If subsequently required, the fee for court testimony is billed at the rate of $250/hour for pre-trial conferences, actual testimony, depositions, and preparation/waiting time. These fee and time estimates are subject to revision if problems are encountered which were unforeseeable at the commencement of the engagement. If unusual matters come to our attention which warrant additional work in excess of the above amount, we will discuss the matter with you immediately so that a mutually acceptable revision can be made. You may at any time prior to the completion of these services cancel this agreement by written notice. In such event you agree to pay upon presentation of a statement compensation for all services rendered to the date Ms. Christina C. Hooper May 27, 2010 Page 3 Client Information: of cancellation, together with all costs advanced in connection with the report prior to receipt of said notice. In order to begin the assignment and complete the report in a timely manner we will need the following items: 1. Access to the property for inspection purposes. 2. Survey or similar mapping identifying property boundaries, total site area and legal description of the subject property to be appraised. 3. Income and expense statements for 2007 and 2008 to cover the base study period, as well as any available lease agreements. 4. Property tax notices for the prior tax year. 5. Any available floor plans or building sketches to confirm square footage, construction details and allocation of use. Retainer: In view of the travel involved, a retainer of 25% of the total fee is requested to begin the assignment. The balance of the fee is payable upon completion and delivery. Qualifications & Prior Experience: Over the past several years we have appraised a wide variety of commercial properties for ad valorem tax purposes. I have testified on many occasions at the. Board of Assessment Appeals as well as District Court and have worked directly for Assessor's Offices in Arapahoe, Boulder, Crowley, Denver, Douglas, Eagle, and Garfield counties. Specific references regarding testimony and ad valorem tax appeal appraisals are available upon request. When not working for the property owners or the county, I have served as an arbitrator after being appointed by the county commissioners in Boulder, Jefferson, and Arapahoe counties. A summary of my basic appraisal qualifications is attached. If this letter correctly states your understanding of the work to be performed, please sign and return one copy of this letter along with the referenced retainer payable to Asset Valuation Advisors, LLP. Our federal employee identification number is 52-2442345. Ms. Christina C. Hooper May 27, 2010 Page 4 This proposal is valid through June 15, 2010. We look forward to working with you on this assignment. If you have any questions or comments on any portion of this proposal please let me know. Sincerely, ASSET VALUATION ADVISORS, LLP ~~,~ ~~ Marcus B. Scott, MAI Certified General Appraiser Colorado #CG1313135 APPROVED BY: o en ~+ ~ 1 ~(,c,~. For: Eagle County Board of County Corrunissioners DATE: ~~ ~ I ~ D Enclosures: Appraisal Qualifications cc: Mark Chapin, Eagle County Assessor l PROFESSIONAL QUALIFICATIONS MARCUS B. SCOTT, MAI 5300 DTC Parkway, Suite 260, Greenwood Village, CO 80111 303.858.8880 (Ext. 14) / 303.731.2255 (Direct) / 303.265.9279 (Fax) PRESENT POSITION: Independent fee appraiser and partner in the professional appraisal and consulting firm of Asset Valuation Advisors, LLP. EXPERIENCE: Mr. Scott has been actively engaged in the real estate and appraisal professions for 30 years and was awarded the MAI designation by the American Institute of Real Estate Appraisers in 1984. His experience includes commercial, industrial, multi-family residential, recreational, and special use properties. Appraisals performed by Mr. Scott have been for purposes of sale/purchase, financing, estate and gift tax, business planning and condemnation. He has also performed feasibility and marketability studies as well as cost-benefit analyses for special improvement districts. Mr. Scott's appraisal practice is regional in scope with several areas of specialty. Over the past 25 years he has appraised a wide variety of limited market properties including administrative municipal buildings, jails, prisons and detention centers, elementary schools, gondola terminals, airport hangars, grain elevators, long-term land leases, conservation easements, and transportation corridors, as well as numerous golf courses and country clubs. EDUCATION: Mr. Scott received a Bachelor of Arts Degree from Colorado State University in 1972. He has completed all of the Appraisal Institute courses leading to designation as well as numerous real estate and appraisal courseslseminars for continuing education, including the Valuation of Conservation Easements Certificate Program. PROFESSIONAL ORGANIZATIONS: Member of the Appraisal Institute Past President (2000), Colorado Chapter of the Appraisal Institute LICENSES AND CERTIFICATIONS: Certified General Appraiser -Colorado -1991 (#CG1313135) MAI Member of the Appraisal Institute - 1984 (#6992) Licensed Real Estate Broker, Colorado - 1976 (Currently Inactive) Licensed Real Estate Salesman, Colorado -1973 COMMUNITY SERVICE: Arapahoe County Open Space & Trails Advisory Board Board Member (2005 -Present) [5/10] a PROFESSIONAL QUALIFICATIONS (Cont.) COURT TESTIMONY: Mr. Scott has been accepted as an expert witness in various courts and administrative tribunals including: • U.S. Bankruptcy Court (Denver) • District Courts in Adams County, Arapahoe County, Denver County, Douglas County, El Paso County, Jefferson County, Montrose County • Superior Court of Justice, Ontario, Canada • Colorado State Board of Assessment Appeals • Various County Boards of Equalization • Binding Arbitration Hearings (Witness & Arbitrator) • Court Appointed Partition Commission (Chairman) CLIENT SAMPLE: Lenders Guaranty Bank and Trust Co. American National Bank Community First Financial First National Bank of Telluride Pueblo Bank and Trust Lafayette Life Insurance Company WestStar Bank Pitkin County Bank & Trust Company Telluride Financial Resources First State Bank of Albuquerque Key Bank of Colorado Bank of Colorado US Bank, Trust Department Castle Rock Bank Developers /Owners /Consultants Union Pacific Railroad Wal-Mart Stores, Inc. Telluride Ski & Golf Company Southern Pacific Real Estate Enterprises Grant Properties Cherokee Ranch & Castle Foundation Shea Homes The Sanctuary, Inc. John Laing Homes Rocky Mountain PBS Catamount Development, Inc. RGL Forensics Various Law Firms ~ Individual Investors Government Agencies Arapahoe County, Colorado City and County of Denver Douglas County, Colorado Garfield County, Colorado Lake County, Colorado City of Aurora City of Lone Tree Pinery Water & Wastewater District U.S. Department of Military Affairs J.P. Morgan -New York First State Bank of Taos B ankWest Mesa National Bank Stearns Bank Arizona Citywide Banks Boulder County, Colorado Crowley County, Colorado Eagle County, Colorado Jefferson County, Colorado Larirner County, Colorado City of Fort Lupton Perry Park Water & Sanitation District Telluride Gondola Transit Authority U.S. General Services Administration Continuing Education Requirements Completed -Appraisal Institute & State of Colorado