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HomeMy WebLinkAboutAnderson and Brabant Inc; 2012-12-17; TRAN961TRAN961 AGREEMENT FOR PROPERTY VALUATION SERVICES (ANDERSON & BRABANT, INC.) ^ THIS AGREEMENT is made and entered into as of the / day of lO/^C^/vij^^r^ , 20by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and Anderson & Brabant Inc., a California corporation, ("Contractor"). RECITALS A. City requires the professional services of a property valuation consultant that is experienced in appraising the value of property. B. Contractor has the necessary experience in providing professional services and advice related to appraising the value of property. C. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein. City and Contractor agree as follows: 1- SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of 180 days from the date first above written. The City Manager may amend the Agreement to extend it for one additional six month period or parts thereof Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be twenty five thousand dollars ($25,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". City Attorney Approved Version 2/17/12 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VH". OR City Attomey Approved Version 2/17/12 with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X". 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate. Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial General Liabilitv Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liabilitv (if the use of an automobile is involved for Contractor's work for City). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Emplover's Liabilitv. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liabilitv. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. I I If box is checked. Professional Liability City's Initials Contractor's Initials Insurance requirement is waived. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to City Attorney Approved Version 2/17/12 maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. Citv reserves the hght to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For Citv For Contractor Name Marshall Plantz Name Gilbert Kunkel Title Senior Civil Engineer Title Treasurer - Project Manager Department Transportation Address 353 W. Ninth Avenue City of Carlsbad Escondido, CA 92025 Address 1635 Faraday Avenue Phone No. (760) 741-4146 Carlsbad, CA 92008 Email gil(gabvaluation.com Phone No. (760) 602-2766 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. City Attorney Approved Version 2/17/12 16. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests in all four categories. 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware ofthe requirements ofthe Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not othen^/ise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee City Attorney Approved Version 2/17/12 payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or othenA/ise recover, the full amount ofthe fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seg.. the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. City Attorney Approved Version 2/17/12 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR ANDERSON & BRABANT, INC., a California corporation (sign here) (print name/title) CITY OF CARLSBAD, a municipal corporation of the State of California By ty Managorror Mc City Managorrpf Mayor or Division Director as authorized by the City Manager By (sign here) (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation. Agreement must be signed by one corporate officer from each of the following two groups. Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney BY: Assistant City Attonney City Attorney Approved Version 2/17/12 Carlsbad Boulevard Realignment Scope of Work and Fee Proposal Exhibit "A" SCOFSOFWORIK; Mim November 12,2012 IPEINTIFICAHON OFTHF FROFERTY Tlie properties to be appraised ai-e shown on maps provided by the client labeled Carlsbad Bovlevard Land Exchange. The map is dated October 15, 2012. The properties shown on the map have indicated acreages that total approximately 27.89 acres of State of California owned land to be acquired by the City and 27.72 acres of land to be acquired by the State of Califomia. Lggal Pgsgnptign To be provided by client: Title to the subject properties is currently vested in the name ofthe City of Carlsbad and the State of Califomia. PURPOSE OF THE ASSIGNIMENT The purpose of this appraisal is to provide an estimate ofthe fair market value of the subject properties. As I'equired by California Department of General Services Appraisal Specifications, Fair Market Value is defined as follows: "The highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing and able to but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which tlie property is reasonably adaptable and available. The fair market value of the property taken for which there is no relevant market is its value as of the date of valuation as determined by any method of valuation that is just and equitable.*'^ (^FFRATSAI^STANPARffS The appraisal development process reflected in the report is intended to be appropriate for the property type and the intended use of the report. This will be a "Summary" appraisal report as defined by USPAP. It is a written report prepared in accordance with Standards Rule 2-2(b) relating to a Summary Appraisal performed under Standard 1 as currently adopted by the Appraisal Standards Board. A Summary Report presents summary discussions of all data, reasonmg, and analyses used in the appraisal process to develop the opinion of value. Furthemiore, the appraisal will conform to the guidelines established by the Califomia Department of General Services Appraisal Specifications (revised January 1, 2008), the Uniform Appraisal Standards for Federal Land Acquisitions, and the Federal Financial Assistance Manual, Volume 69 (effective October 1,2008).. ^Caltfamia Code of Civil Procedures. Title 7. Sec. 1263.320 Anderson & Brabant. Inc. 2 Carlsbad Boulevard Realignment Scope of Work and Fee Proposal CLIENT The client for this assignment is the City of Carlsbad. TNTENDED USE AND INTENDED USER This appraisal report is for the use of the City of Carlsbad (client) and the State of Califomia. It is understood that the appraisal report is intended to facilitate conversion of State of Califomia Park Service lands and will include value conclusions for the proposed converted land (State of Califomia ownership) and the replacement land (City of Carlsbad ownership). PROPERTY RIGHTS APPRAISED The interest appraised is the fee simple estate, subject to covenants, conditions and restrictions of record, if any. Fee Simple Estate is defined as follows: "Absolute ownership unencumbered by any other interest or estate subject only to the four powers of govemment."^ Title reports for the appraised properties are to be provided by the client at the client's discretion. Absent current title reports, the appraiser will rely on available sources (record of survey, etc.) for information regarding encumbrances. Where no information is available, the appraiser will assume that the appraised properties are free of any encumbrances except where an actual physical encumbrance (for example, overhead power lines) is discovered during the property inspection. If such a physical encumbrance is discovered, the appraiser will make a reasonable assumption as to the extent of the encumbrance on title. In addition, the appraiser will assume encumbrances are in place as directed by the client if it is reasonable to assume that the encumbrance will impact the property as part ofthe realignment project or due to other factors. VAI JTATION PREMISE The focus of the current appraisal is on the market value of the subject property in its "As Is" condition as of the date of value. "AS IS VALUE" means the market value of the appraised property as it physically, legally, and economically exists on the effective date of value. Market Value should reflect deductions for proposed construction or partially leased improvements.2 The concept of "As Is" value as used in this report is qualified to the extent that the subject property has been appraised in the before condition in compliance with Califomia Code of Civil Procedure Section 1263.330 which states that "The fair market value ofthe property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: (a) The project for which the property is taken, (b) The eminent domain proceedings in which the property is taken." PATE QF \Mm The date of value for this analysis is to be a current date of value. 2 The Dictionary of Real Estate Appraisal, 2nd ed. (Chicago: Appraisal Institute, 1989, p. 120 Anderson & Brabant, Inc. ^ Carlsbad Boulevard Realignment Scope of Work and Fee Proposal DATE OF REPORT The date of this report is to be determined. EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is something that is assumed to be true, but is not certain. An extraordinary assumption of this report is that the lands appraised are available in the open market place for purchase by public and private buyers and that upon sale of the property, it could be put to economic use or uses consistent with surrounding uses and based on prudent land planning. It may be that in the course of this assignment that this extraordinary assumption will be determined to be a hypothetical condition (see following section) and will be identified as such in the appraisal. HYPOTHETICAL CONDITIONS Hypothetical conditions are known to be false, but are presumed to be true for the purpose of reasonable analysis. LAND USE CONSULTANT The properties to be appraised currently have differing land use designations. The concept of highest and best use is based, in part, on a use that is legally allowable and physically possible. The determination of legally allowable uses will require the input and opinions of City of Carlsbad planning staff Consideration should be given to retaining a land use consultant to assist in land use determinations critical to the valuation analysis. OTHER DEFINITIONS The following definitions are pertinent to the appraisal that follows. The definitions are from the Dictionary of Real Estate Appraisal. Highest and Best Use: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. Larger Parcel: In condemnation, the portion of a property that has unity of ownership, contiguity, and unity of use, the three conditions that establish the larger parcel for the consideration of severance damages. SCOPE OF WORK SUMMARY The appraisal development process reflected in this report is intended to be appropriate for the property type and the intended use of the report. This is a "Summary" appraisal report as defined by USPAP. It is a written report prepared in accordance with Standards Rule 2-2(b) relating to a Summary Appraisal performed under Standard 1. A Summary Report presents summary discussions of all data, reasoning, and analyses used in the appraisal process to develop the opinion of value. In addition the report will conform to the Califomia Department of General Services Appraisal Specifications (revised January 1, 2008) and the Uniform Appraisal Standards for Federal Land Acquisitions. Anderson & Brabant, Inc. 4 Carlsbad Boulevard Realignment Scope of Work and Fee Proposal The scope of this appraisal will require collecting primary and secondary market data relative to the subject property. The depth of the analysis is intended to be appropriate in relation to the significance of the appraisal problem. These data will be analyzed and confirmed using all available sources. The valuation process will involve the utilization of all techniques and procedures considered appropriate to the assignment. The types of data to be considered will include some or all of the following: sales, listings, offers to purchase, and leases. The data considered may represent transactions occurring over a wide time fi-ame as deemed necessary. The geographic limits of the search are expected to focus on coastal influenced properties in the State of Califomia, with other locations considered as deemed necessary. The first step in the analysis will be to conduct a preliminary survey of the subject property and surrounding area in order to more accurately define the appraisal problem and identify the methods and techniques necessary to accomplish the objective of this appraisal report. The general area will be inspected for the purpose of identifying those specific boundaries within which data that could be considered relevant to this analysis would most likely be located. The intent of this inspection is also to identify physical conditions, neighborhood development trends, and other factors that affect real property value. We will examine the general economy of the region and community to determine trends in population, housing, employment, financing, and markets which influence the real estate environment. The subject properties will be inspected to ascertain physical features such as topography, access, drainage, street improvements, utilities, and condition. All available reports pertinent to the subject properties will be reviewed and considered where applicable. The Sales Comparison Approach is considered to have applicability in the valuation of the subject properties. Other approaches to value will be considered if applicable. It is anficipated that the Anderson & Brabant, Inc. will prepare separate parcel appraisals for each parcel determined to be a separate parcel for the purpose of this appraisal. The parcel appraisals will be included in a single report with separate sections for each parcel. Anderson & Brabant, Inc. Carlsbad Boulevard Realignment Scope of Work and Fee Proposal ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following special assumptions and limiting conditions: 1. This is a "Summary Appraisal Report" which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it presents summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. 2. The opinions and conclusions included in this appraisal are based on information available and/or discovered as of the date of the appraisal. The appraiser reserves the right to change those opinions and conclusions if additional information which is in any way pertinent, such as items specific to the property or additional market data, becomes available and/or is discovered subsequent to the appraisal date. 3. An extraordinary assumption is something that is assumed to be true, but is not certain. An extraordinary assumption of this report is that the lands appraised are available in the open market place for purchase by public and private buyers and that upon sale of the property, it could be put to economic use or uses consistent with surrounding uses and based on prudent land planning. It may be that in the course of this assignment that this extraordinary assumption will be determined to be a hypothetical condition (see following section) and will be identified as such in the appraisal 4. The concept of "As Is" value as used in this report is qualified to the extent that the subject property has been appraised in the before condition in compliance with Califomia Code of Civil Procedure Secfion 1263.330 which states that "The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: (a) The project for which the property is taken, (b) The eminent domain proceedings in which the property is taken." This appraisal is subject to the following general assumptions and limiting conditions: 1. It is assumed that information fiimished to us by our client and the property owner, including maps, cost estimates, legal descriptions, and property income and operating expense information is substantially correct. 2. No responsibility is assumed for matters legal in character, nor do we render an opinion as to title, which is assumed to be held in fee simple interest as of the date of valuation unless otherwise specified. 3. It is assumed that the property is readily marketable, fi-ee of all liens and encumbrances except any specifically discussed herein, and under responsible ownership and management. 4. Photographs, plats, and maps fiimished in this appraisal are to assist the reader in visualizing the property. No survey of the property has been made and no responsibility has been assumed in this matter. Anderson & Brabant, Inc. Carlsbad Boulevard Realignment Scope of Work and Fee Proposal 5. It is assumed that there are no legitimate environmental or ecological reasons that would prevent orderly development of the land to its highest and best use under economically feasible conditions. 6. Soils engineering studies have not been provided to your appraisers. It is therefore assumed that there are no hidden or unapparent conditions of the property such as hazardous or toxic wastes and/or other subsoil conditions, which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering, which might be required to discover such factors. 7. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials, may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 8. Disclosure ofthe contents of this appraisal report is govemed by the by-laws and regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially reference to the Appraisal Institute or the MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without prior written consent and approval of Anderson & Brabant, Inc. 9. The submission of this report constitutes completion of the services authorized. It is submitted on the condition that the client will provide the appraiser customary compensation relating to any subsequent required depositions, conferences, additional preparation or testimony. 10. The valuation estimate is of surface rights only and the mineral rights, if any, have been disregarded. 11. No warranty is made as to the seismic stability of the subject property. Anderson & Brabant, Inc. Carlsbad Boulevard Realignment Scope of Work and Fee Proposal FEE PROPOSAL Total Fee: $25,000 Estimated Completion Date: 75 days from authorization to proceed Payment Schedule: $10,000 due upon 50% completion (property inspection and analysis completed, land use issues determined, market data sources identified, verification started). Anderson & Brabant, Inc.