HomeMy WebLinkAboutR40-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY
` OF THE CITY OF SAN BERNARDINO Or.
FROM: Emil A.Marzullo SUBJECT: Real Estate Consultant Agreement - Louis
Interim Executive Director Schnepp
DATE: July 25,2008
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Synopsis of Previous Commission/Council/Committee Action(s):
On July 24, 2008, the Redevelopment Committee recommended approval of a real estate consulting agreement with Louis
Schnepp,Dakota Management Company,Inc.
Recommended Motion(s):
Community Development Commission
Resolution of the Community Development Commission of the City of San Bernardino, California, approving an
agreement with Louis Schnepp,Dakota Management Company, Inc., and authorizing execution thereof,providing for
professional real estate consultant services
Contact Person(s): Emil A.Marzullo Phone: (909)663-1044
Project Area(s): All Ward(s): All
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s) ❑Contract(s) ❑ Map(s) ❑ Letters
FUNDING REQUIREMENTS: Amount: $ 43.00 per hour Source: All
Budget Authority: Fiscal Year 2008-2009 Budget
Signature: Fiscal Review: .
� k
Emil A.Marzullo,1nterim&ie&tive Director Barbara Lindseth,Administrative Services Director
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Commission/Council Notes: ��50 /'`��e,/22
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P:\Agendas\Comm Dev Commission\CDC 2008\08-04-08 Lou Schnepp-Professional Services Consultant Agreement SR.doc COMMISSION MEETING AGENDA
Meeting Date: 08/04//2008
Agenda Item: e-1
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
REAL ESTATE CONSULTANT AGREEMENT-LOUIS SCHNEPP
BACKGROUND:
On June 21, 2007, the Community Development Commission ("Commission") adopted the Economic
Development Agency's ("Agency") fiscal year 2007-2008 Budget. As part of the fiscal year 2007-2008
Budget a new Agency employee position, Real Property Manager at the salary range of$5,818 to $7,425
per month, was approved. After Commission approval of the Budget, the Agency recruited for this new
Agency position twice, but only a total of thirteen (13) employment applications were received, of which
none had the vast public sector experience required to be able to step into the job and perform at the
required level. Again, in fiscal year 2008-09, the position of Real Property Manager was budgeted at the
same salary and benefit level.
CURRENT ISSUE:
In need of a qualified individual with extensive public sector real estate experience, and unable to locate
and hire a qualified candidate for the Real Property Manager position, Louis Schnepp, of Dakota
Management Company, Inc., was retained by the Agency to provide professional public sector real estate
consulting services. Mr. Schnepp was temporarily retained under the Agency's purchase order authority
in order for the Agency's interim Executive Director to analyze and determine the extent of the Agency's
need for real property transaction services.
Recently retired from the County of San Bernardino, Mr. Schnepp has over forty (40) years of experience
in real property transactions for the public sector, including real property acquisition and disposition,
appraisals, relocation, property management and other real property service activities, including
application of any laws, which govern public sector real property transactions. In addition, Mr. Schnepp
has various real property certificates and licenses, which augment his work experience as an expert in the
field of real property transactions.
At this time, it has been determined that the Agency should continue to utilize the professional consulting
services of Mr. Schnepp for the Agency's real property transactions through a formally approved
agreement, in lieu of again recruiting for the Agency's employee position of Real Property Manager.
Compensation will be at the rate of$43.00 per hour, which is equivalent to the Real Property Manager
position at the top "17" step of the Agency's salary range for this position, without consideration for
benefits, which is a savings of approximately $45,000 in annual Agency benefits and employer taxes. If
approved, the proposed agreement would be subject to termination by either party with thirty (30) day
notice, and be subject to funding through the Agency's annual budget adoption process.
ENVIRONMENTAL IMPACT:
None.
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P:\Agendas\Comm Dev Commission\CDC 2008\08-04-08 Lou Schnepp-Professional Services Consultant Agreement SR.doc COMMISSION MEETING AGENDA
Meeting Date: 08/04/2008
Agenda Item:
Economic Development Agency Staff Report
Real Estate Consultant Agreement-Louis Schnepp
Page 2
FISCAL IMPACT:
The approximate annual cost of the proposed agreement will be $89,440, based upon full-time real estate
consulting services.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
Emil A. Marzullo, Interim Executive Director
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PAAgendas\Comm Dev Commission\CDC 2008\08-04-08 Lou Schnepp-Professional Services Consultant Agreement SR.doc COMMISSION MEETING AGENDA
Meeting Date: 08/04/2008
Agenda Item:
C (DPD
1 RESOLUTION NO.
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
3 OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN
AGREEMENT WITH LOUIS SCHNEPP, DAKOTA MANAGEMENT
4 COMPANY, INC., AND AUTHORIZING EXECUTION THEREOF,
5 PROVIDING FOR PROFESSIONAL REAL ESTATE CONSULTANT
SERVICES
6
7 WHEREAS, the Community Development Commission of the City of San Bernardino
8 ("Commission") desires to enter into a real estate consultant agreement ("Agreement") with
9 Louis Schnepp, Dakota Management Company, Inc., which will provide professional real estate
10 consulting services to the City of San Bernardino Economic Development Agency ("Agency").
11 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
12
CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, A
13
FOLLOWS:
14
Section 1. The Commission hereby approves and authorizes execution thereof, of ar
15
16 Agreement with Louis Schnepp, Dakota Management Company, Inc., to provide professional
17 real estate consulting services for the Agency, as attached hereto.
18 Section 2. This Resolution shall take effect upon the date of its adoption.
19
20 H
21 H
22 H
23 H
24 H
25 U
l 1
P:W gendas\Resolutions\Resolutions4008 108-04-08 Real Estate Consultant-L Schnepp CDC Reso.doc
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
2 OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN
AGREEMENT WITH LOUIS SCHNEPP, DAKOTA MANAGEMENT
COMPANY, INC., AND AUTHORIZING EXECUTION THEREOF,
' PROVIDING FOR PROFESSIONAL REAL ESTATE CONSULTANT
4 SERVICES
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
6
Community Development Commission of the City of San Bernardino at a
7
meeting thereof, held on the day of , 2008, by the following vote to wit:
8
Commission Members: Ayes Nays Abstain Absent
9 ESTRADA
10 BAXTER
II BRINKER
12 DERRY
0 13 KELLEY
JOHNSON
14
MC CAMMACK
15
16
17 Secretary
18 The foregoing resolution is hereby approved this day of , 2008.
19
20
Patrick J. Morris, Chairperson
21 Community Development Commission
of the City of San Bernardino
22
Approved as to form an L al Content:
23
By:
24 Agency ou el
0 25
2
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AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement for Professional Services is made and entered into on this 4`t' day of August,
2008, by and between the Redevelopment Agency of the City of San Bernardino, a public body
corporate and politic (hereinafter referred to as "Agency") and Louis Schnepp, Dakota Management
Company, Inc., (hereinafter referred to as "Consultant").
WITNESSETH
WHEREAS, the Consultant has over forty (40) years of experience in real property
transactions, including real property acquisitions and disposition, appraisals, relocations, management
and other related real property service activities for public entities. In addition, the Consultant has
various real property certificates and licenses, which augment the Consultant's work experience as an
expert in the field of real property transactions; and
WHEREAS, the Agency and the Consultant desire to enter into an Agreement to utilize the
Consultant's services for real property transaction and management services as described in Exhibit
"A" (the "Scope of Services") attached hereto and incorporated herein by reference. Consultant
accepts responsibilities as described herein.
NOW, THEREFORE, in consideration of mutual covenants herein set forth and the mutual
benefits to be derived there from, the parties agree to enter into the Agreement as follows:
1. TERMS.
(a) This Agreement shall commence as of the day and year first above and shall remain in full
force and effect until such time as either party provides a written thirty (30) day termination
notice, and shall be subject to appropriate funding within the Agency's annual budget.
(b) The Consultant shall perform work as requested and as needed by the Agency and promptly
provide the finished product to the Agency.
2. CONSULTANT RESPONSIBILITIES.
Upon the request of the Agency, the Consultant shall perform each element as needed of the
work described in the Scope of Services, Exhibit "A", and any other agreed upon real property
transaction services as may be required by the Agency. Consultant commits the principal
personnel listed below to the Scope of Services for the duration of this Agreement:
Consultant: Louis Schnepp
3. AGENCY RESPONSIBILITIES.
The Agency shall provide all supplies and materials necessary to accomplish the work in the
Scope of Services, Exhibit "A". Agency shall provide, in a reasonable timely fashion, the
Consultant with any documentation, records, reports, statistics or other data or information
pertinent to the Scope of Services, which are reasonably available to the Agency, and necessary
to complete assignments.
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4. CONFIDENTIALITY OF REPORTS.
The Consultant shall keep confidential all reports, information and data received, prepared or
assembled pursuant to performance hereunder. Such information shall not be made available to
any person, news release, firm, corporation, or entity without prior written consent of the
Agency's Executive Director or designee.
5. COMPENSATION.
The maximum compensation for Consultant's services, including Consultant's costs and
expenses, shall not exceed forty-three dollars ($43.00) per hour. Reimbursement for travel,
including travel mileage at the current Internal Revenue Service rate, shall be pre-approved by
the Executive Director, in writing on a case-by-case basis, and shall be submitted for
reimbursement with the Consultant's monthly invoice as supported by documentation in
accordance with the Agency's policies and procedures. During the term of this Agreement, the
Agency shall pay the Consultant on a monthly basis upon receipt of an itemized invoice from
Consultant, normally within two (2) weeks of receipt of said invoice. Said compensation shall
be considered full and complete reimbursement for all of the Consultant's costs associated with
the services provided hereunder.
6. USE OF FUNDS.
The funds paid to the Consultant shall be used solely for the purpose as set forth in this
Agreement and in accordance with the Scope of Services. The Consultant shall remain in
compliance with all state, federal and local laws prior to the receipt of any reimbursement
hereunder.
7. NONDISCRIMINATION; MONITORING AND REPORTING WORK
PERFORMANCE.
The Consultant shall not discriminate because of race, color, national origin, creed, religion,
sex, marital status, or physical handicap. At the request of the Executive Director, or designee,
the Consultant shall provide reports or other work products as required, no later than on agreed
upon dates of completion. Failure to provide such work products may prevent payment of the
Consultant's requests for compensation, and may justify the temporary withholding as provided
herein. The Agency reserves the right to waive such breach, without prejudice to any other of
its rights hereunder, upon a finding by the Executive Director or designee that such failure was
due to extraordinary circumstances and that such breach has been timely cured without
prejudice to the Agency.
8. CONFLICT OF INTEREST.
The Consultant shall maintain a code or standard of conduct. Consultant shall neither solicit
nor accept gratuities, favors, or anything of monetary value for work completed under the
Scope of Services. To the extent permissible by state laws, rules and regulations, the standards
adopted by the Consultant shall provide for penalties, sanctions, or other disciplinary actions to
be applied for violations of such standards by the Consultant.
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9. INDEPENDENT CONTRACTOR.
P XL
The Consultant shall perform each element of the work set forth in the Scope of Services as an
independent contractor and shall not be considered an employee of the Agency. This
Agreement is by and between the Consultant and the Agency, and is not intended, and shall not
be construed, to create the relationship of agent, servant, employee, partnership,joint venture,
or association, between the Agency and the Consultant.
i
10. SUCCESSOR AND ASSIGNMENT.
The services as contained herein are to be rendered by the Consultant whose name is as appears
first above written and said Consultant shall not assign nor transfer any interest in this
Agreement without the prior written consent of the Agency.
11. INDEMNIFICATION.
Consultant agrees to indemnify, defend and hold harmless the Agency and the City of San
Bernardino ("City"), its agents, officers and employees from and against all liability, expense,
including defense costs and legal fees, and claims for damages of any nature whatsoever,
including, but not limited to, bodily injury, death, personal injury or property damage arising
out of this contract from Consultant's negligence, errors or omissions connected with the
services performed by or on behalf of the Consultant pursuant to this Agreement. The costs,
salary, and expenses of the Agency's legal counsel in enforcing this Agreement on behalf of the
Agency shall be considered as "legal fees" for the purpose of this Section.
12. COMPLIANCE WITH LAWS.
The parties agree to be bound by applicable federal, state, and local laws, regulations and
directives as they pertain to the performance of this Agreement.
13. SEVERABILITY.
In the event that any provision herein contained is held to be invalid, void or illegal by any
court of competent jurisdiction, the same shall be deemed severable from the remainder of this
Agreement and shall in no way affect, impair, or invalidate any other provision contained
herein. If any such provision shall be. deemed invalid due to its scope of breadth, such
provision shall be deemed valid to the extent of the scope or breadth permitted by law.
14. INTERPRETATION.
No provision of this Agreement is to be interpreted for or against either party because that party
or that party's legal representative drafted such provision, but this Agreement is to be construed
as if it were drafted by both parties hereto.
15. ENTIRE AGREEMENT.
This Agreement supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the retention of the Consultant by Agency and contains all the
covenants and agreements between the parties with respect to such retention.
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16. WAIVER.
No breach of any provision hereof can be waived unless in writing. Waiver of any one breach
of any provision shall not be deemed to be a waiver of any other breach of the same of any
other provision hereof.
17. CONTRACT EVALUATION AND REVIEW.
The ongoing assessment and monitoring of this Agreement is the responsibility of the
Executive Director or designee.
18. TERMINATION.
This Agreement may be terminated for the convenience of either party by giving written notice
of at least thirty (30) days.
19. NOTICE.
Notices herein shall be presented in person or by certified or registered United States mail, as
follows:
To Consultant: Louis Schnepp
Dakota Management Company, Inc.
DBA: Dakota Enterprises
- 198 N. Arrowhead Avenue
San Bernardino, California 92408
(909) 381-3632
To Agency: Executive Director
Redevelopment Agency of the City of San Bernardino
201 North"E" Street, Suite 301
San Bernardino, California 92401
(909) 663-1044
Nothing in this paragraph shall be construed to prevent the giving of notice by personal service.
20. ENTIRE AGREEMENT.
This Agreement with Exhibit"A" constitutes the entire understanding and agreement of the
parties.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Dated: By:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By:
Agenc s
CONSULTANT
Dakota Management Company, Inc.
Dated: By:
Louis Schnepp
S
P.\Agendas\Agenda Attachments\Agrmts-Amend 2008\08-0408 Professional Services Agreement-Consultant L.Schnepp.doc
Exhibit"A"
Scope of Services
ICI
i
Dakota Management Company, Inc.
DBA: Dakota Enterprises
198 North Arrowhead Avenue
San Bernardino, California 92408
Louis Schnepp
Scope of Service:
• provide fair market value appraisals and appraisal reviews
• facilitate real property and right-of-way acquisitions in accordance
with law
• facilitate real property dispositions in accordance with law
• negotiate with property owners
• open escrows and follow to closing
• order, examine and advise on title reports and documents
• clear property title when necessary
• administer relocation assistance applicable under Public Law 91-646
• manage Agency owned real estate assets, including leasing and
contracting for maintenance/repairs and overseeing other obligations
of ownership
• issuing Request for Proposals for the disposition of, and exposing for
sale the surplus Agency owned real estate
• any other real estate transaction as required
Experience:
• forty (40) years of required experience in public real estate
transactions
• Associates of Arts Degree in Business Management
• College certificate in Real Estate and Escrow
• California State Certified General Appraiser's License
• Advanced Appraiser's Certificate from the State Board of
Equalization
• Senior National Association of Review Appraisers
• Senior Designation from the American Society of Appraisers
• Senior Designation with the International Right-of-Way Association