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HomeMy WebLinkAboutPS 2017-05-01 Item 2A - Public Safety Plan - Real Estate Broker Agreement with Heartland LLCCity of Tukwilla Allan Ekberg, Mayor Pub/icNdxkxDeportn/ent - Bob Giberson, Director TO: Public Safety Committee FROM: Bob Gibmrson� Public Works Director C{}: Mayor Ekberg [}ATE: April 28.2O17 SUBJECT: Contract for Real Estate Broker Services Public Safety Plan ISSUE Approve Heartland LLC for the Real Estate Broker services in regard to the Public Safety Plan BACKGROUND The Public Safety Plan projects iO the 2017-18 Capital Improvement Program include budgets for land acquisition including related expenses, such as real estate bn}k8[S. real estate appraisers, land surveyors and other due diligence expenditures. ANALYSIS The City advertised Request for Qualifications and received proposals from three real estate brokerage firms After reviewing the proposals, Heartland LLC was selected based on superior experience and qualifications. The other firms were well qualified, but did not rank @Ghigh. The attached contract was negotiated for a standard broker commission of 2.5% of the gross purchase price for each transaction plus a fixed maximum fee of $60,000 for actual time and materials of the Suboonau/t8nt CL8 for work related to acquisition oSSiSt8nC8 and eminent domain consultation. Up to $4O.0DOofaubCOnSuUani fees will b8 credited against the commissions. RECOMMENDATION Council is being asked to approve the consultant agreement with Heartland LLC in the amount of $80'000 plus 2.5% of each r8o| estate U3OS8CtiOn based on the gnDSS purchase phma at the May 15'2O17 Regular Meeting Consent Agenda. ATTACHMENTS Consultant Rating Sheet Consultant Agreement Exhibit A Scope OfWork Exhibit B Consultant Fee Schedule 4/26/2017 4/12/2017 Final Broker Scoring Summary + Ranking.xlsx Firm Proposal Average Interview Average* Total Average Rank Long Bay /Otak 26 0 26 2 Heartland /CLS 34 0 34 1 New Ventures 24.5 0 24.5 3 *Because committee was unanimous regarding its first- ranked proposer, interviews were not conducted. https:Hgc1- excel.gov.online.offi ce365.us /x /_I ayouts /xl pri ntvi ew.aspx ? &N oAuth =1 & sessionld= 12.a465c258fdd31.A99.1.V25. 10937 %2BM I EH Fxu %2BmofwtbyApn...31 /1 0 City of Tukwila Contract Number: 6200 Southcenter Boulevard, Tukwila WA 98188 CONSULTANT AGREEMENT FOR REAL ESTATE BROKERAGE SERVICES THIS AGREEMENT is entered into between the Qh/ of Tukwila, VVashingbon, hereinafter referred to as "the City", and Heartland LLC, hereinafter referred to as "the Cnnau|tant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant in retained by the City to provide Real Estate Brokerage services in connection with the project titled City of Tukwila Public Safety Plan Property Acquisitions. 2. Scope of Services. The Consultant agrees to perform the aervioeo, identified on Exhibit ''A^ attached hereto, including the provision of all |abor, nnateria|o, equipment and supplies, 3. . This Agreement shall be in full force and effect for a period commencing upon execution and ending 12/31/2018, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant toproceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement during the term of the Agreement unless an extension of such time is granted in writing by the City. 4. AgencV. City authorizes Consultant to appoint Matt Anderson as City's Designated Broker ("Designated Broker"). This Agreement creates an agency relationship with City and any of Consultant's bpokerS, including any of the Consultant's agents or brokers supervised by Designated Broker, and Designated Broker as City's agent. Nn other brokers affiliated with Firm are agents of Seller, except tothe extent that Conau|tant, in its dioo/etinn, appoints other brokers to act on City's behalf es and when needed. 4. PaVment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement aafollows: A. Payment for the work provided by the Consultant shall be made as provided on ''Exhibit B: Consultant Fee Schedule," attached hereto, provided that the total amount of payment to the Consultant shall not exceed 2.5% of gross pU[Ch@SB price of each property purchased by City pursuant t0 and during the term of the /\gn8HDleOt. B. The Consultant may submit invoices to the City once per month during the progress of the work for partial payment for that portion of the project completed to date by sub consultants previously authorized by the City. Such invoices will be checked by the City and, upon approval thereof, payment ahe\| 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. O. Payment as provided in this section shall be full compensation for work perfornned, services rendenyd, and for all m8teria|o, aupp|ien, 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 the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All dooumento, drawinga, 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 vvhich they are made is executed or not. The Consultant shall be permitted to retain oopies, including reproducible oop/on, 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 doouments, dravvings, specifications or other materials by the City on any project other than the project specified in this Agreement. 0. Compliance with Laws . The Consultant shall, in performing the services contemplated by this Agreennent, faithfully observe and comply with all federal, n<ote' and local |avvG, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its offiners, officia|s, employees and volunteers harmless from any and all o|ainoe, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreennent, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement in subject to RCVV 4.24.115, dlen, in the event of liability for damages arising out of bodily injury to peroons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its offiooro, offinie|s, employees, and volunteers, the Consultant's liability hereunder oh8U be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant's waiver of innnnunib/ under Industrial Insurance, Title 51 RCVV, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. R. Insurance. The Consultant ohoU procure and maintain for the duration of the Agreement, insurance against claims for injuries arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law orin equity. A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: cA revised : 1-2013 N. � 1. Automobile Liability insurance with a nnininounn combined single |innh for bodily injury and property damage of $1'008.000 per accident. Automobile Liability insurance shall cover all owned, non-ownmd. hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 orosubstitute form providing equivalent liability coverage. If necessary, the policy ahoU be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000'000 general aggregate. Commercial General Liability insurance shall be written on ISO occurrence form CG OD 01 and shall cover liability arising from pnemisue, operations, independent contractors and personal injury and advertising injury. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City. Page 2 3. ' coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional LiabilitV with limits no less than $1.00O.000 per claim and $1'000.O0U policy aggregate |inn/L Professional Liability insurance aheU be appropriate tothe Consultant's profession. B. Other |nsummma Provision. The Consultant's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any Insurance, sa|Anounanoo, or insurance pool coverage maintained by the City shall be exooeo of the Consultant's insurance and shall not bo contributed or combined with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a ounordA`K4. Best rating of not less than A:VII. D. Verification ofCoverage. Consultant shall furnish the City with original certificates and a copy of the amendatory endonaannento, including but not ne0000ah|y limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before oonnnnenoomant of the work. Certificates of coverage and endorsements an required by this section ahe|| be delivered to the City within fifteen (15) days of execution of this Agreement. E. Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. F. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute e moh*rio| breach of contract, upon which the City nnoy' after giving five business days notice to the Consultant to correct the bnaach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection thenevvith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 9. Independent Contractor. The Consultant and the City agree that the Consultant ioen independent contractor with respect tothe services provided pursuant tn 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 prognann, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that ho has not employed or retained any company or person, other than n bonafide employee working solely for the Consultant, to solicit or secure this cmntraot, and that he has not paid or agreed to pay any company or penaon, other than a bonafidm employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from 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 from the contract price or consideration, or otherwise recover' the full amount ofsuch kae. commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. The Cnnsu|tant, with regard to the work performed byitunder this Aornennnnt, will not discriminate on the grounds of race, re|igion, oreed, oo|or, national oriOin, age, veteran status, sex, sexual orientetion, gender identih/, marital stetun, political uA revised �1-2oo Page 3 affiliation or the presence of any disability 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. Either party may terminate this Agreement by giving 10 days written notice to the other party. In the event of such termination, City shall owe to Consultant any fees earned or expenses incurred up to the date of termination. This shall include full or partial payment of a Commission, as defined herein, to the degree reasonably earned by Consultant prior to the Termination, even if closing on the subject property occurs after Termination of the Agreement. B. In the event of the death 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. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its reasonable attorney's fees and costs of suit. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: Heartland, LLC 1301 First Avenue, Suite 200 Seattle, WA 98101 P: (206) 682 -2500 F: (206) 467 -1429 18. Entire Agreement; Modification. 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. No CA revised : 1 -2013 Page 4 i amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 19. Inconsistent Provisions of the attached exhibits, within the exhibits. cx revised : 1a013 . In the event provisions of this Agreement are inconsistent with any the provisions of this Agreement shall supersede those contained Page 5 � � 107—AIVIRM120 CITY OF TUKWILA Allan Ekberg, Mayor City Clerk, Christy O'Flaherty CA revised : 1-2013 CONSULTANT Printed Name: Matt Anderson Title: Principal & Designated Broker Approved astoForm: Office of the City Attorney Page 6 Exhibit A: RFQ & Scope of Services City of REQUEST FOR QUALIFICATIONS REAL ESTATE BROKERAGE SERVICES Issued by: City of Tukwila, Washington 6200 Southcenter Boulevard Tukwila, WA 98188 Contact: Justine Kim, Owner's Representative Telephone (206) 838-3706 justinek@sojsea.com March 8, 2017 RFQ Broker Services Page 1 of 7 11 General Background The City of Tukwila (City) is a municipality in King County in the State of Washington, directly south of the City of Seattle. The City of Tukwila incorporated in 1908, and currently has an estimated population of 20,000. In November 2016, 60% of City of Tukwila voters approved a 20 -year bond as a part of the City's overall Public Safety Plan (PSP). The bond will pay for the replacement of three seismically deficient fire stations, new fire equipment and apparatus, and construction of a justice center to house the Tukwila Police Department and Tukwila Municipal Court. Another aspect of the PSP is the construction of a consolidated City shops facility to replace the existing inefficient and unsafe facilities, which will be paid for by equal parts from the City's General and Enterprise funds. Request The City is seeking the services of a licensed commercial Real Estate Broker (Broker) to provide Real Estate Broker Services for the identification and acquisition of 4 -5 properties to house the new city facilities being built. The required services will consist of assisting City in identifying and acquiring properties that meet the City's requirements for each of the facilities. The selected Broker will be expected to perform the services in accordance with the Scope of Services and in accordance with the requirements of the solicitation. This RFQ solicitation does not in any way obligate City to award a contract or to pay any expense or cost incurred in the preparation and submission of qualifications statement responding to this RFQ. Scope of Services The City will engage a qualified Broker as an independent consultant under a separate contract, for a specified time period and scope of services. The scope of the work for the separate contract shall include, but not limited to, the following: 1. Consult with City's project team as needed to fully understand the property selection criteria and site requirements for each City facility. 2. Provide input to City's project team regarding site selection criteria and geographic parameters. 3. Research appropriate areas of the city, as guided by the project team and approved site selection criteria, for viable real estate acquisitions. a. This will include regular monitoring of listing services to identify potentially appropriate properties that are listed for sale. b. This will also include identifying suitable properties that are not listed for sale, and upon approval from the City, approaching owners on behalf of the City to initiate purchase negotiations. 4. Identify potential properties that appear to meet each facility's needs. 5. Assist City project team in the evaluation, negotiation, and purchase process. a. This will include close coordination and meetings with City's project RFQ Broker Services Page 2 of 7 12 team to discuss suitability of candidate properties. b. This will also include assisting the City in conducting all aspects of due diligence on any contracted properties. c. If this process results in the use of the City's eminent domain authority, the scope of services will include supporting and assisting the City throughout the process, including negotiations and possibly providing written or oral testimony in court. 6. Advise the City on engaging an independent and experienced certified commercial appraiser, who will contract directly with the City to establish fair market values of properties being considered. 7. As requested by City, make oral and visual presentations to City staff, advisory committees, the public, and elected officials. 8. Distribute purchase documents to interested sellers. 9. Provide regular progress reports to City's project team. 10. Serve exclusively as the City's agent on the project. 11. Facilitate all property closings, including engagement of a title company to handle closing documents and recording. Minimum Qualifications The following minimum qualifications are required in order for a Broker to be considered. Respondents should explain how they meet each of the Scope of Service needs and these qualifications: 1. Respondent must be a licensed commercial Real Estate Broker in good standing in the State of Washington. 2. Broker must have a minimum of five (5) years' experience in listing and leasing commercial properties in the Seattle metropolitan area. a. As described in Proposal Contents below, respondents should submit a list of properties listed or acquired in the last 5 years. Experience listing properties within the City of Tukwila is not required, but if you have listed properties within Tukwila, please highlight these transactions in the response. b. Please also highlight any transactions completed on behalf of a public entity. 3. Experience in valuation of commercial, industrial, and institutional land and improvements. 4. Prior work representing a public entity (city, state, county, school district, service district, transit agency, or university). 5. Comprehensive understanding of Washington eminent domain statute, ability to take lead responsibility on behalf of city to ensure compliance with all procedural requirements. 6. Familiarity with projects financed with tax - exempt municipal bonds. 7. Ability to understand the City of Tukwila's zoning regulations and entitlement processes. RFQ Broker Services Page 3 of 7 13 Proposal Contents: Responses should include the following information and arrange the document in the following format: 1. Cover Letter, signed by an authorized representative of the firm. 2. Firm Profile and Qualifications: a. List of key team members who will potentially work on this engagement and their respective roles associated with this project. b. Provide current resumes, including the following for each Broker or agent that the respondent intends to include on its team. i. Description of each team member's qualifications to provide real estate advisory services, with specific numbered responses to each of the minimum qualifications listed above. c. Description of firm's experience representing public agencies and experience with tax - exempt bonds and eminent domain. d. Brief overview of the firm's philosophy and approach to property selection and the firm's approach to working with clients. 3. Firm Experience a. Provide a summary of recent (last 5 years) industrial, institutional, and commercial real estate transactions completed by the team (or individual members of the team) including: i. Brief description of vacant land or existing building transactions, including industrial, institutional, or commercial sales or acquisitions. For each RFQ Broker Services 14 transaction, please provide the following information: 1. Size of parcels and improvements, location, zoning, and transaction date. 2. Describe the degree to which the firm facilitated due diligence activities for the client. Identify any transactions conducted for a public agency client, and any transactions involving the use of tax - exempt bonds or eminent domain. 4. Identify any transactions located within the municipal boundaries of Tukwila. ii. Describe strategies utilized by the firm for identifying suitable properties, either vacant land or existing buildings. iii. References: Provide a listing of a minimum of four former or current client references for commercial real estate representation, including at least two public agencies, for which the firm has provided similar services to those proposed herein. Include, at a minimum: 1. Client Name 2. Client Contact Person and Title 3. Client Contact Person's email address and phone number 4. Brief description of the scope of services provided and dates services were provided. Page 4 of 7 4. Proposed fees for services as described in "Scope of Services" listed in this RFQ. a. Please note all assumptions that form the basis of the fees, and describe the method for calculating the fees. b. If any fees are commission based, please note which services are covered by the commission. c. For non - commission based fees, please attach a schedule of hourly rates or proposed billing approach and estimated total fee. The City requests that the firm limit its expression of qualifications to fifteen (15) typewritten pages, excluding the cover page, table of contents and the required attachments. The statement of qualifications should take the form of a bound 8 %Z inch report with a table of contents and all pages numbered in sequence. Submittal Requirements Please submit any and all questions in writing to Justine Kim by the time and date specified below, using this email address: Jusinel< @SOJSEA.com. Any substantive clarifications requested by one Respondent will be shared with all known potential Respondents. The deadline for submitting clarification questions is 5:00 pm Pacific, March 17, 2017. Questions and answers will be sent by email to all respondents by 5:00 pm on March 24, 2017. Interested firms shall submit original and one (1) hard copy and one (1) electronic copy of the Broker's Statement of Qualifications to the below address no later than 4:00 pm on March 31, 2017 to be considered. Faxed and /or late submittals will not be considered. ATTN: Justine Kim Shiels Obletz Johnsen, Inc. 800 Fifth Ave, #4130 Seattle WA 98104 RE: Tukwila Real Estate Broker Services RFQ Approximate Selection Timeline Request for Qualifications Issued March 8, 2017 Questions Due: March 17, 2017 Responses to Questions Due: March 24, 2017 Proposals Due: March 31, 2017 Interviews (if deemed necessary) Week of April 10, 2017 Selection April 17, 2017 RFQ Broker Services Page 5 of 7 15 Evaluation Criteria Each proposal will be independently analyzed by members of an evaluation team comprised of City's project team. The evaluation team may choose to interview top firms. Factors to be used in evaluating the proposals will include, but are not limited to: 1. Firm's experience and demonstrated ability to provide the requested services. 2. Qualifications, skills, and applicable experience of firm's team members. ]. Proposed fees for services. 4. Quality and content ofresponse. 5. Experience in working with similar organizations on similar projects. 6. References. City Reservation of Rights City reserves the right to reject any or all proposals, to waive any informality in the RF8 process, or to terminate the RF[} process at any time, if deemed by City to be in the organization's best interest. J. City reserves the right nottnavvardacontnactpursuanttothisRFQ 3. City reserves the right tuterminate a contract awarded pursuant to this RF[}at any time for convenience upon 10 days written notice to the selected consultant. 4. City reserves the right to retain all proposals submitted and not permit withdrawal of proposals for a period of 60 days subsequent tothe deadline for receiving proposals. 5. City reserves the right to negotiate fees proposed by bidders pursuant to this RF(}. 6. City reserves the right to reject and not consider any proposal that does not meet the requirements of this RF[, including but not limited to responses that are late, incomplete, nr that offer alternate or non-requested services. 7. City shall have no obligation to compensate any Respondent to this RFQ for any costs incurred in responding tothis RF(l. 8. City reserves the right to, at any time during the RF[}or contract process, prohibit any further participation by bidder or Respondent or reject any proposal submitted that does not conform to any of the qualifications and services required detailed herein. 9. City reserves the right to terminate the engagement at any time if City learns or determines that respondent's activities, investments, or property ownership constitute conflict ofinterest. RFQ Broker Services Page 6 of 7 CITY OF TUKWILA CONTACT INFORMATION FORM FOR QUALIFICATION FOR REAL ESTATE BROKER SERVICES PROPOSER NAME: EIN#: ADDRESS: PHONE NUMBER: FAX NUMBER: COMPANY CONTACT: EMAIL ADDRESS: AUTHORIZED SIGNATURE: THIS PAGE MUST BE SIGNED BY A PERSON AUTHORIZED TO ACT FOR THE COMPANY IN HIS/HER OWN NAME. RFQ Broker Services Page 7 of 7 17 im CONSULTANT FEE SCHEDULE Fees paid by the City of Tukwila, Washington (City) to Heartland LLC (Consultant) pursuant to the Consultant Agreement for Real Estate Brokerage Servicws, executed on K8my___ 2817, shall bagoverned by the following provisions: COMPENSATION. In consideration of the oen/ioee to be rendered by Conou|tent. City agrees to pay Consultant as follows: 1. Commission: 2.5%of the gross purchase price of each property purchased during the term of the Agreement, payable at closing. a. The Commission shall be payable at closing on any property unwhich City shall, during the term of this Aorooment, enter into a written purchase or option to purchase a property located in the City of Tukwila, Washington, so long as such property is consistent with the operational objectives outlined in Exhibit A. and approved in writing by City nr City's representative for evaluation or acquisition by Consultant. b. In the event owner of all or portions of the properties targeted for purchase under this engagement list its property for sale with a broker, and Consultant receives part of the listing broker's commission payable by the nwner, then the Commission payable by City under this Agreement shall be reduced by the amount of commission Consultant receives from nwner(s)'u listing broker. 2. Sub Consultant (Contract Land Staff) Fees: Sub consultant fees will be billed monthly to City by Consultant without markup and paid monthly by City. Fees will be billed on a time and materials basis per the hourly rates below. Up to $40,000 of sub consultant fees will be credited against the Commissions paid to Consultant on a prorated basis as closings occur. Sub consultant fees shall not exceed $60,000 unless previously authorized by City in a. Contract Land Staff (Sub consultant) Hourly Rates: Contract Land Staff, ILLC 2017 Schedule of Hourly Rates Sr. Vice President $175.00 per hour Project Director/Supervisor $160.00 per hour Project Manager Acquisition/Negotiation $155.00 per hour Project Manager — Relocation $140.00 per hour Sr. Right of Way Agent $120.00 per hour Administrative Land Specialist $80.00 per hour Travel reimbursed at standard govt. approved rates Per mile Other Travel Expenses As Agreed Sub-consultant rates vary by task and project As negotiated Consultant Fee Schedule b. Contract Land Staff (Sub consultant) Fee Provisions: Consultant Fee Schedule CONTRACT LAND STAFF, LUC considers photocopying, UrstC|eanD0st000. telephone, facsimile and cellular communication charges 000normal component of its overhead. These charges are included in the stated hourly rates. Out-of-pocket expenses including travel and lodging, outside exhibit preparadiun, requested overnight courier or registered and/or certified mail (return receipt requested) charges and specialty reproduction (unless otherwise specified) are in addition to the contract amount and will bn charged at cost plus ten percent (+10%). Subcontracted services, other than those listed above, will be invoiced ot cost plus ten percent /+1096>. In the event CONTRACT LAND STAFF, LLCia required bz perform any act in relation to litigation arising out of any project vvbhUlaC|ient(forexannp|e. expert consulting, responding to a complaint, or proceeding with discovery and tria|). such services are not part of this contract, nor are they part of Contract Land Staff's normal fees. If required, these types of services will be invoiced at two times (2x) current regular hourly /ateo, at the time of service. iii. |n the event this contract extends twelve (12) months beyond the initial date of execution, the hourly rates and any remaining amount in the contract shall be adjusted upwardly by five percent (5%) per annum, compounded annually, on the anniversary date nf this contract. iv. Written communication services in other languages would boonadditional cost and would ba billed separately based on quoted hourly rates bv independent translation services. v. CONTRACT LAND STAFF, LLC may submit monthly invoices for the professional services rendered based nn the hourly rate schedule provided above. Substantial changes in the required scope of work may result inthe revision of the proposed fees.