HomeMy WebLinkAboutCOW 2006-06-12 Item 5E - Agreement - LID Special Benefit Study for Tukwila Urban Center Access (Klickitat) with Macaulay & Associates COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
CAS NUMBER: 06-071 IORIGI,NAL AGENDA DATE: JUNE 12, 2006
AGENDA ITEat TITLE Tukwila Urban Center Access (Klickitat /Southcenter Pkwy)
Local Improvement District (LID) Special Benefit Study Consultant's Agreement
CATEGORY Discussion Motion Ambition 9 Ordinance Bid Award 9 Public Hearing Other
Mfg Dat. 6/12/06 Mtg Dat. 6/19/06 Mtg Date Mfg Date Mfg Date Altg Date AUg Date
SPONSOR Council A Adm SVCS DCD Finance Fin Legal PtR Q Police PW/
SPONSOR'S The Tukwila Urban Center Access Project located at Southcenter Parkway and Klickitat
SUABL1RY Drive now requires the next step in the LID process. The Feasibility Study determined that
there would be a definite benefit to the area. Now a Special Benefit Study will provide a
tabulation of recommended assessments for parcels in the LID boundary area established
in the Feasibility Study. There is also a need for three summary appraisal reports for right
of -way acquisition, which has also been included in this consultant's agreement.
REVIEWED BY COW Mtg CA &P Cmte F&S Cmte Transportation Cmte
Utilities Cmte 9 Arts Comm. Parks Comm. 9 Planning Comm.
DATE: 6/12/06 (same night as COW)
RECOMMENDATIONS:
SPONSOR /ADMLN. Authorize Mayor to sign contract with Macaulay Associates.
COALlr2TEE Report needed, same night as COW.
COST IMPACT FUND SOURCE
EXPE.NDJTURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$93,000.00 $3,890,000.00
Fund Source: 104.02 Commercial Streets (pg 37, 2006 CI?)
Comments: All costs associated with the LTD will be folded into the final LIT) assessment.
MTG. DATE 1 RECORD OF COUNCIL ACTION
6/12/06
6/19/06
MTG, DATE ATTACHMENTS
6/12/06 Information Memo dated June 6, 2006
Consultant Agreement with Scope of Work
Discussed at Transportation Committee Meeting 6/12/06 (same night as COW). J
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6/19/06
INFORMATION MEMO
To:
From:
Date:
Subj ect:
Mayor Mullet
Public Works Director )JV
June 6, 2006 -~
LID Special Benefit Studv and Rieht-of-'Vav Assistance for
Tukwila Urban Center Access Project (Klickitat)
Project Number 84-RW19
ISSUE
Contract with Macaulay & Associates for the Klickitat LID Special Benefit Study and Right-of-Way
acquisition assistance.
BACKGROUND
In July 2005, Lee Voorhees, an attorney with Foster Pepper Shefelman spoke with staff on the basics
of forming Local Improvement Districts (LID). One key recommendation that !vir. Voorhees made to
staffwas to consider doing a feasibility study on whether an LID would be financially beneficial for a
specific project. LID's are complex funding mechanisms that are legally restricted from assessing
more than the project would increase property values. Therefore making sure that a project does,
indeed, increase property values is essential. Mr. Voorhees suggested that such a study could be done
by any MAl certified appraiser.
Macaulay & Associates was selected in the fall to conduct the feasibility study out of several
appraisers. The study showed a definite benefit of the project, indicating that formation of an LID
would be quite feasible.
ANALYSIS
Staff was directed to retain Macaulay & Associates to develop a scope of work for the next step in the
LID formation. This next step will provide the details of how much each parcel \vill benefit and an
approximate amount each parcel would be assessed in the LID. The final assessment amount \vill be
determined when the project has been completed and all other sources of funding (grants, city funds,
impact fees, etc.) are fully accounted for.
At the same time, right-of-way needs to be acquired for the project. HNTB, the city's lead consultant
on the design, has retained a firm to assist in the acquisition but they are unable to both negotiate the
purchase price and conduct a fair market value assessment due to a conflict of interest. Since
Macaulay & Associates is familiar with the project area, it was logical to approach them to conduct the
necessary appraisals. The attached scope of work includes both tasks.
Financial Impact
The LID Special Benefit Study will not exceed $84,000 and the appraisal work will not exceed $9,000,
for a total contract amount not to exceed $93,000. The $84,000 can be folded into the costs assessed
in the final LID.
RECOMMENDATION
Authorize the Mayor to execute an agreement with Macaulay & Associates in the amount not to
exceed $93,000 to provide a Special Benefits Study and Right-of-Way assistance for the Tubvila
Urban Center Access Project (Klickitat).
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CONSULTAl\'T AGREEMEJ\'T FOR
APPRAISAL SERVICES
THIS AGREEMENT is entered into between the City of Tukwila, Washington, herein-after referred
to as "the City", and Macaulay & Associates hereinafter referred to as "the Consultant", in
consideration of the mutual benefits, terms, and conditions hereinafter specified.
1 Project Designation. The Consultant is retained by the City to to conduct a preliminary
sPecial benefit study for a proposed Local Improvement District and appraisal reports for right
of way aCQuistion services in connection with the project titled Tukwila Urban Center Access
Improvement ProiectlKlickitat '
2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A"
attached hereto, including the provision of all labor, materials, equipment and supplies.
3 Time for Performance. Work under this contract shall commence upon the giving of written
notice by the City to the Consultant to proceed. The Consultant shall perform all services and
provide all work product required pursuant to this Agreement within 45 calendar days ITom
the date written notice is given to proceed, unless an extension of such time is granted in
writing by the City
4 Payment. The Consultant shall be paid by the City for completed work and for services
rendered under this Agreement as follows:
A. Payment for the work provided by the Consultant shall be made as provided on Exhibit
"A" attached hereto, provided that the total amount of payment to the Consultant shall not
exceed $93,000 without express written modification of the Agreement signed by the
City
B. The Consultant may submit vouchers to the City once per month during the progress of
the work for partial payment for that portion of the project completed to date. Such
vouchers will be checked by the City and, upon approval thereof, payment shall be made
to the Consultant in the amount approved.
C. Final payment of any balance due the Consultant of the total contract price earned will be
made promptly upon its ascertainment and verification by the City after the completion of
the work under this Agreement and its acceptance by the City
D Payment is provided in this section shall be full compensation for work performed,
services rendered, and for all materials, supplies, equipment and incidentals necessary to
complete the work.
E. The Consultant's records and accounts pertaining to this Agreement are to be kept
available for inspection by representatives of the City and state for a period of three (3)
years after final payments. Copies shall be made available upon request.
5 Ownership and Use of Documents. All documents, drawings, specifications and other
materials produced by the Consultant in connection with the services rendered under this
Agreement shall be the property of the City whether the project for which they are made is
executed or not. The Consultant shall be permitted to retain copies, including reproducible
copies, of drawings and specifications for information, reference and use in connection with
the Consultant's endeavors. The Consultant shall not be responsible for any use of the said
documents, drawings, specifications or other materials by the City on any project other than
the project specified in this Agreement.
6. Compliance with Laws. The Consultant shall, in performing the services contemplated by
this Agreement, faithfully observe and comply with all federal, state, and local laws,
ordinances and regulations, applicable to the services to be rendered under this Agreement.
7 Indemnification. The Consultant shall indemnify, defend and hold harmless the City, its
officers, agents and employees, from and against any and all claims, losses or liability,
including attorney's fees, arising from injury or death to persons or damage to property
occasioned by any act, omission or failure of the Consultant, its officers, agents and
employees, in performing the work required by this Agreement. With respect to the perform-
ance of this Agreement and as to claims against the City, its officers, agents and employees,
the Consultant expressly waives its immunity under Title 51 of the Revised Code of
Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the
obligation to indemnify, defend and hold hannless provided for in this paragraph extends to
any claim brought by or on behalf of any employee of the Consultant. This waiver is mutually
negotiated by the parties. This paragraph shall not apply to any damage resulting from the
sole negligence of the City, its agents and employees. To the extent any of the damages
referenced by this paragraph were caused by or resulted from the concurrent negligence of the
City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid
and enforceable only to the extent of the negligence of the Consultant, its officers, agents and
employees.
8. Insurance. The Consultant shall secure and maintain in force throughout the duration of this
contract comprehensive general liability insurance, with a minimum coverage of $500,000 per
occurrence and $1,000,000 aggregate for personal injury; and $500,000 per occurrence!
aggregate for property damage, and professional liability insurance in the amount of
$1,000,000.
Said general liability policy shall name the City of Tuk\vila as an additional named insured
and shall include a provision prohibiting cancellation of said policy except upon thirty (30)
days prior written notice to the City Certificates of coverage as required by this section shall
be delivered to the City within fifteen (15) days of execution of this Agreement.
2
9 Independent Contractor The Consultant and the City agree that the Consultant is an inde-
pendent contractor with respect to the services provided pursuant to this Agreement. Nothing
in this Agreement shall be considered to create the relationship of employer and employee
between the parties hereto. Neither the Consultant nor any employee of the Consultant shall
be entitled to any benefits accorded City employees by virtue of the services provided under
this Agreement. The City shall not be responsible for withholding or otherwise deducting
federal income tax or social security or for contributing to the state industrial insurance
program, othenvise assuming the duties of an employer \vith respect to the Consultant, or any
employee of the Consultant.
10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or
retained any company or person, other than a bonafide employee working solely for the
Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any
company or person, other than a bonafide employee working solely for the Consultant, any
fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon
or resulting ITom the award or making of this contract. For breach or violation of this warrant,
the City shall have the right to annul this contract without liability, or in its discretion to
deduct ITom the contract price or consideration, or otherwise recover, the full amount of such
fee, commission, percentage, brokerage fee, gift, or contingent fee.
11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under
this Agreement, will not discriminate on the grounds ofrace, color, national origin, religion,
creed, age, sex or the presence of any physical or sensory handicap in the selection and
retention of employees or procurement of materials or supplies.
12. Assignment. The Consultant shall not sublet or assign any of the services covered by this
Agreement without the express written consent of the City
13. Non-Waiver. Waiver by the City of any provision of this Agreement or any time limitation
provided for in this Agreement shall not constitute a waiver of any other provision.
14. Termination.
A. The City reserves the right to tenninate this Agreement at any time by giving ten (10)
days written notice to the Consultant.
B. In the event-of the de-ath of a member, partner or officer of the Consultant, or any of its
supervisory personnel assigned to the project, the surviving members of the Consultant
hereby agree to complete the work under the terms of this Agreement, if requested to do
so by the City This section shall not be a bar to renegotiations of this Agreement
between surviving members of the Consultant and the City, if the City so chooses.
15 Attorneys Fees and Costs. In the event either party shall bring suit against the other to
enforce any provision of this Agreement, the prevailing party in such suit shall be entitled to
3
recover its costs, including reasonable attorney's fees, incurred in such suit from the losing
party
16. Notices. Notices to the City of Tukwila shall be sent to the following address:
City Clerk
City ofTukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
Notices to Consultant shall be sent to the following address:
Robert J Macaulay, MAl
Macaulay & Associates, Ltd
2927 Colby Ave Suite 100
Everett, W A 98201
(206) 382-9711
17 Integrated Agreement. This Agreement, together with attachments or addenda, represents
the entire and integrated Agreement between the City and the Consultant and supersedes all
prior negotiations, representations, or agreements written or oral. This Agreement may be
amended only by written instrument signed by both the City and the Consultant.
DATED this
day of
,20_
CITY OF TUKWILA
CONSULTA1\'T
By'
Steven M. Mullet, Mayor
Printed Name:
Title:
Attest! Authenticated.
Approved as to Form.
Jane E. Cantu, CMC, City Clerk
Office of the City Attorney
4
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2927 Colby Ave:me, Suite 100 . Everett, WA 9S201
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June 6, 2006
Cyndy Knighton
Senior Transportation Engineer
City of Tukwila
6300 Southcenter Blvd., Suite IOO
Tukwila, \VA 98188-2544
Re: Scope of work for preliminary special benefit/proportionate assessment study for proposed
Klickitat/Southcenter Access Improvement Project Local Improvement District (LID) and three
individual appraisal reports for right-of-way acquisition, Tukwila, WA.
Dear Ms. Knighton:
In accordance with your request, our proposed scope of work is summarized for preparation of a
preliminary special benefit/proportionate assessment study for potential LID formation in conjunction wiL"
the proposed Klickitat/Southcenter Access Improvement Project. Research completed for the recent
feasibility study will be utilized and incorporated into this new scope of work, where applicable. Also, we
have prepared a scope of work for preparation of three summary appraisal reports for right-of-way
acquisition purposes.
The first scope of work discussed will involve completion of a prelimL'1ary special benefit/proportionate
assessment study and preparation of a report summarizing our findings. This report will consider physical
and economic characteristics of each affected parcel. A base study will be undertaken, to consist of L;e
assemblage of pertinent market data and investigation of the environmental, economic, governmental and
social forces influencing the subject area. Consideration will be given to current zoning, land use trends,
building improvements, highest and best use and other factors influencing market value for each property
type or ownership, without and with the amenity of the LID road improvement project
The appraisal report will be prepared in conformity with Standard 6 of the uniform Standards of
Professional Appraisal Practice (USP AP) for summary mass appraisal reports. As such, it results ;n a
limited valuation process whereby there are certain allowable departures from USPAP The depth of
discussion to be contained in the report will be specific to the needs of the client.
The increase in probable market value adhering to each parcel due to the UD project is the measure of
special benefit. The total assessment to be levied will be obtained from the municipal LID coordinator. Tne
sum of the special benefit estimated for each parcel is the total special benefit attributable to assessable
property within the proposed LID; this total divided into the total UD assessment wil! provide the
assessment ratio or the UD assessment per dollar of special benefit. The special benefit to each parcel times
the cost!benefit ratio will result in the individual assessment recommended to that parcel.
~!S. Cyndy Knighton
June 6, 2006
page nvo
a) The recommended assessment will be equal to or less than the special benefit accruing to that particular
parcel.
b) Each recommended assessment will be fair and in proportion to the special benefit derived by that parcel
and all other parcels due to the LID project.
Completion of our work. as the assigruhent is described herein, will result in a preliminary formation
special benefit study report which outlines the recommended LID boundary ih'1d provides a narrative
summary of the study and tabulation of recommended assessments for all assessable parcels spedal1y
benefitted by the project. Due to the size of the project and number of parcels, individual appraisal reports
on each are not prepared. Limited assignment appraisal techniques arc utilized and a spreadsheet
summarizing our value conclusions without and with the LID assumed completed is underta.1.,en.
Based on previous projects completed by our firm and our hourly rates, our estimated fee for completion
of above scope of work is not to exceed 584,000. An itemized cost breakdown is available if needed.
Our second scope of work involves preparation of three separate summary appraisal reports for right-of-
way acquisition purposes. Based on information provided, two of the properties (:VlcDonalds Restaurant
and Double Tree Plaza) will involve temporary construction easement rights. The third appraisal (Sumay
Investments) will involve fee simple rights. Each of above properties wi!! be valued before and after
acquisition of specified property rights. The difference in the before and after values is the recommended
just compensation amount.
The appraisals would be developed and the appraisal reports prepared in conformity with and subject to the
requirements of the Code of Professional Ethics of the Appraisal Institute and the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation and will also be in conformance with WSDOT
appraisal standards.
Our estimated fee for completion of the two temporary construction easement reports is $2,000 each and
$5,000 for the fee simple report for a total fee estimate of $9,000.
This project looks interesting and challenging. If you haw any questions on the above scope of work,
please feel free to call.
Respectfully submitted,
MACAULAY & ASSOOATES, LID
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RobertJ. Macaulay, MAl
WA SI.Jte C~rtified - General Appr3iser '\0. 1100517
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