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4.1. SR 05-18-2020 Request for Action To Item Number Mayor and City Council 4.1 Agenda Section Meeting Date Prepared by Consent May 18, 2020 Zack Carlton, Planning Manager Item Description Reviewed by Award Professional Services Contract: Residential Cal Portner, City Administrator Property Valuation Study for Park Dedication Reviewed by Update Action Requested Approve, by motion, a Professional Services Contract with Patchin Messner Valuation Counselors to complete a residential land valuation study. Background/Discussion Staff prepared an RFP to solicit bids for an update to the land valuations used to calculate the city’s Park Dedication Fee. The city received one proposal from Patchin Messner Valuation Counselors, which is the same group that completed the study in 2016. The land valuation study will further divide the high-density housing classification into three project types and adjust the park dedication fee for the smaller apartment projects that Elk River typically receives. The consultant expects the complete the study by June 24, 2020. Staff will present recommended changes to the park dedication fee during a July Council meeting. Financial Impact The proposal is $6,500 and can be paid for using Park Dedication Funds. Attachments  RFP Response  Standard Agreement for Professional Services The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity PATCHIN MESSNER VALUATION COUNSELORS March 9, 2020 City of Elk River 13065 Orono Parkway Elk River, MN 55330 Attn: Mr. Zack Carlton Planning Manager RE: Request for Proposals Residential Land Valuation Study Dear Mr. Carlton: Attached please find the requested information on our company and personnel, as well as related supplemental information, to be considered by the City of Elk River for consultation services. Patchin Messner Valuation Counselors is a nationally recognized real estate valuation and consulting firm serving a wide range of local and regional clients. The company has many unique appraisal specialties including measuring the impacts on value due to taking of easements or fee title of property, and valuing environmentally impaired or special purpose properties, including railroad corridors. Clients expect and receive a high degree of professionalism and attention to detail. The company concentrates in valuation and consultation concerning a broad variety of commercial/industrial properties and transitional/development land for litigation, condemnation, tax appeal, financing and purchase/sale decisions. Thank you for considering our firm for this project. If you have any further questions, please do not hesitate to contact us. We appreciate the opportunity to serve the City of Elk River and look forward to working with you. Sincerely, PATCHIN MESSNER VALUATION COUNSELORS Jason L. iviessner, ivwu President Attachments Sunset Pond Executive Offices • 13961 West Preserve Boulevard • Burnsville, MN 55337 Phone: (952) 895-1205 • Fax: (952) 895-1521 Patchin Messner Appraisals, Inc. (dba: Patchin Messner Valuation Counselors) City of Elk River Residential Land Valuation Study RFP RESPONDER INFORMATION Summary of Personnel and Contact Information Patchin Messner Appraisals, Inc. (dba: Patchin Messner Valuation Counselors) 13961 West Preserve Boulevard Burnsville, MN 55337 Jason L. Messner, MAI, Principal Sherril L. Brumm, MAI, Principal Christine L. Mackaman, MAI, Principal Brent D. Pederson, MAI, Principal Randy J. Deones, Associate Appraiser Andrew S. Totzke, Associate Appraiser Craig A. Christianson, Associate Appraiser Kristina E. Lindemann, Associate Appraiser Nathan A. Wareham, Associate Appraiser Myrna Mclnenly/Miriam Hermes, Office Managers Contact Person: Jason L. Messner, President Telephone: 952-895-1205 Fax: 952-895-1521 Email: messner@valuationcounselors.net Website: www.valuationcounselors.net Project Understanding It is our understanding that this proposal is for consultation/appraisal work related to a residential land valuation study. The purpose of the study is to establish fair market value for three residential land classes, in order to set the city's park dedication fees for residential uses. The land classes are based on the following densities: Low — less than 5 dwelling units per acre Medium — 5 to 8 dwelling units per acre High — greater than 8 dwelling units per acre; including small apartment (50 units or less), mid -size apartment (51 to 100 units), and large apartment (100+ units) PATCHIN MESSNER Patchin Messner Appraisals, Inc. 2 (dba: Patchin Messner Valuation Counselors) City of Elk River Residential Land Valuation Study RFP Project Approach Patchin Messner Valuation Counselors will conduct research and analyze residential land sales in Elk River and surrounding communities in order to arrive at an indication of average market values for un-platted land in the City of Elk River. This consultation is not intended to be an appraisal of any particular property within the City of Elk River. Rather, the function of this memorandum is to provide guidance to the City in determining appropriate park dedication fees. The following data and information pertaining to the review of park dedication fees will be examined. • City of Elk River zoning and land use information • Minnesota Statute 462.358 Subd. 2b. regarding park dedication fees • Investigate comparable residential land sales • Complete statistical analysis on observed market -transacted sale prices Proposed Project Team Jason Messner, Sherril Brumm, Christine Mackaman, and Brent Pederson are principals of the firm and are MAI members of the Appraisal Institute. One or more principals and associate appraisers will combine their knowledge and experience in analyzing information relating to the Land Valuation Study. Our firm has recently conducted similar studies for the Cities of Apple Valley and Lakeville. Resumes for Jason Messner, Sherril Brumm, Christine Mackaman, and Brent Pederson are attached. PATCHIN MESSNER Valuation Counselors Patchin Messner Appraisals, Inc. 3 (dba: Patchin Messner Valuation Counselors) City of Elk River Residential Land Valuation Study RFP Firm Experience and Qualifications City of Elk River Conducted study of residential land sales in Sherburne County and surrounding areas to arrive at an indication of market values for un-platted land in the City of Elk River in order to determine appropriate park dedication fees. City of Apple Valley Conducted study of commercial, industrial and residential land sales in Dakota County and surrounding areas in order to arrive at an indication of average market values for un- platted land in the City of Apple Valley, to determine appropriate park dedication fees. City of Lakeville Conducted study of commercial and industrial land sales in Dakota County and surrounding areas in order to arrive at an indication of average market values for un- platted land in the City of Lakeville, to determine appropriate park dedication fees. Schedule We propose to begin work on the study within 30 days of authorization and a draft report to be provided no later than June 24, 2020. Total Consultant Cost The cost of preparing the Residential Land Valuation Study will not exceed $6,500.00 and no reimbursable expenses will be charged. In addition, professional fees for services rendered after delivery of the finalized consultation report will be invoiced at the following hourly rates: Jason Messner Sherril Brumm Christine Mackaman Brent Pederson Associate Appraisers Consultation/ Follow-up Analysis $180.00/Hour $170.00/Hour $150.00/Hour $150.00/Hour $75.00 to $100.00/Hour Expert Testimony $300.00/Hour $250.00/Hour $250.00/Hour $250.00/Hour N/A Finally, this proposal remains valid for 90 days from the date of submittal. PATCH[N MESSNER Valuation Counselors Patchin Messner Appraisals, Inc. (dba: Patchin Messner Valuation Counselors) City of Elk River Residential Land Valuation Study RFP SUPPLEMENTAL INFORMATION Qualifications: Jason Messner Sherril Brumm Christine Mackaman Brent Pederson PATCH[N MESSNER Valuation Counselors QUALIFICATIONS OF JASON L. MESSNER PROFESSIONAL AFFILIATIONS MAI Member, Appraisal Institute Certified General Real Property Appraiser, Minnesota License No. 4000836 Member, Minneapolis Area Association of Realtors Member (No. 6591), International Right of Way Association BUSINESS EXPERIENCE Patchin Messner Valuation Counselors, President/Principal, 2001 to Present Patchin Messner Appraisals, Inc., Principal, 1995 to 2000 Peter J. Patchin & Associates, Inc., Associate Appraiser, 1986-1994 Century 21 Granite City Real Estate, Residential Salesperson, 1985 EDUCATIONAL BACKGROUND Bachelor of Science Degree, St. Cloud State University, majored in Real Estate, graduated Magna Cum Laude, 1986 Associate in Arts Degree in Business Administration, Willmar Community College, graduated with honors, 1984 SPECIALIZED REAL ESTATE Basic Valuation Procedures, American Institute of Real Estate Appraisers, 1986 TRAINING Real Estate Appraisal Principles American Institute of Real Estate Appraiser, 1986 Capitalization Theory and Techniques (Part A), A.I.R.E.A., Minneapolis, MN, 1987 Standards of Professional Practice, A.I.R.E.A., Minneapolis, MN, 1988; Appraisal Institute, Minneapolis, MN, 1994 Capitalization Theory and Techniques (Part B), A.I.R.E.A., Minneapolis, MN, 1989 Case Studies in Real Estate Valuation, American Institute of Real Estate Appraisers, Mpls., MN, 1990 Report Writing & Valuation Analysis, Appraisal Institute, Minneapolis, MN, 1991 SEMINARS ATTENDED Appraisal Institute Condemnation: Legal Rules and Appraisal Practices Special -Purpose Properties: The Challenges of Real Estate Appraising in Limited Markets New Industrial Valuation The Road Less Traveled: Special Purpose Properties National Uniform Standards of Professional Appraisal Practice Update The Appraiser as Expert Witness The Appraisal of Local Retail Properties Valuation of Detrimental Conditions in Real Estate Analyzing Distressed Real Estate Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets Appraising the Appraisal: Appraisal Review -General Complex Litigation Appraisal Case Studies Real Estate Valuation in Condemnation Appraising in Minnesota APPRAISAL EXPERIENCE Preparation of appraisals for condemnation, tax appeal, litigation, financing, debt restructuring, acquisition/disposal, and special assessment appeal. Properties appraised include: office buildings, warehouses, service stations, manufacturing plants, medical and veterinary clinics, shopping centers, restaurants, apartment buildings, subsidized housing, research and redevelopment buildings, grain elevators, flour mills, special—purpose properties, lands, air rights, avigation easements, utility easements, highway easements, and environmentally impaired properties. Specialize in litigation valuation of commercial, industrial, development land and investment properties. PATCHIN MESS; Valuation Counsc RELATED EXPERIENCE APPRAISAL CLIENTS COURT EXPERIENCE QUALIFICATIONS OF JASON L. MESSNER (CONTINUED) Participant in the writing of The Effect of Contamination on The Market Value of Property, Federal Highway Admin.; Office of Right -of -Way, Washington, DC, 1993 Faculty participant at the Hazardous Waste Litigation seminar, Minnesota Institute of Legal Education, 1995 Adjunct lecturer on environmental appraisal issues, University of St. Thomas, Mpls., MN, 1996 and 2002 Faculty participant at the Annual Right -of -Way Professionals Conference, Minnesota Department of Transportation, 2004, 2005 and 2007 Metro/Minnesota Chapter of the Appraisal Institute; Education Coordinator — 1997 through 2001, Secretary — 2001, Vice President — 2002, President — 2003, Region III Representative - 2008 through 2011. National Board of Directors of the Appraisal Institute, 2012 through 2016. Alliant Techsystems, Inc. Bank of America B.P. Oil Pipeline Company Burlington Northern Railroad Company Campbell Soup Company Ceridian Corporation CMC Heartland Partners Deluxe Check Corporation Equitable Life Assurance Co. Exxon Mobil Corporation Farm Credit Services First Bank Systems Great River Energy Honeywell, Inc. IBM Corporation IDS Financial Services Internal Revenue Service Jostens, Inc. LaSalle National Bank Lockheed Martin Louisville Regional Airport Authority Medtronic, Inc. Metropolitan Airports Commission Mpls. Community Planning and Economic Development (CPED) Minnesota Department of Transportation 3M Corporation Northwest Airlines, Inc. Northwestern Mutual Life Insurance Co. Old Dutch Foods Philips Lighting Resolution Trust Corporation Reynolds Metals Company Soo Line Railroad Company Unisys Corporation University of Minnesota U.S. Environmental Protection Agency U.S. Fish & Wildlife U.S. Postal Service Wells Fargo Williams Pipeline Company Xcel Energy Other clients include various Cities (Andover, Belle Plaine, Bloomington, Brooklyn Center, Burnsville, Cambridge, Chanhassen, Chaska, Cokato, Columbia Heights, Crystal, Duluth, Elk River, Farmington, Jordan, Lake City, Lino Lakes, Marshall, Medina, Minneapolis, Minnetonka, New Brighton, New Prague, Osseo, Prior Lake, Ramsey, Richfield, Robbinsdale, Rochester, St. Paul, St. Louis Park, Savage, Shakopee and Victoria), and Counties (Benton, Brown, Carver, Clay, Dakota, Douglas, Goodhue, Hennepin, Jackson, McLeod, Murray, Nicollet, Otter Tail, Ramsey, Scott, Sherburne, Stearns, Steele and Washington), in the State of Minnesota. Qualified as an expert witness in Minnesota Tax Court, U. S. District Court (Minnesota), Anoka, Carver, Dakota, Goodhue, Hennepin, Isanti, Rice, Scott, Wabasha, Washington and Wright County District Court and various Commission Hearings. PATCHIN MESSNER Valuation Counselors QUALIFICATIONS OF SHERRIL L. BRUMM PROFESSIONAL AFFILIATIONS MAI Member, Appraisal Institute Certified General Real Property Appraiser, Minnesota License No. 20249948 Member of MNCREW, Minnesota Commercial Real Estate Women BUSINESS EXPERIENCE Patchin Messner Valuation Counselors, Principal, 2019 to Present Patchin Messner Dodd & Brumm, Principal, 2011 to 2018 Patchin Messner Appraisals, Inc., 1998 to 2010 Kelly Appraisal Services, Staff Appraiser, 1995-1996 Valuation Counselors, Inc., Staff Appraiser, 1986-1989 United States Army Reserve, 1983-1989 Mid America Title Company, 1981-1984 EDUCATIONAL BACKGROUND Bachelor of Science Degree, Northern Illinois University, majored in Finance, minored in Economics; graduated Magna Cum Laude, 1986 SPECIALIZED REAL ESTATE Appraisal Institute/American Institute of Real Estate Appraisers Course Work: TRAINING Real Estate Appraisal Principles Basic Valuation Procedures Residential Case Study Standards of Professional Appraisal Practice Basic Income Capitalization Advanced Income Capitalization Highest & Best Use and Market Analysis Advanced Sales Comparison and Cost Approaches Report Writing and Valuation Analysis Advanced Applications Business Practice and Ethics Supervisor Appraiser/Trainee Appraiser Course Completed Litigation Professional Development Program: Condemnation Appraising — Principles & Applications Litigation Appraising: Specialized Topics and Applications The Appraiser as an Expert Witness SEMINARS ATTENDED: Appraisal Institute Annual Real Estate Trends (2008, 2009) Trends in the Lodging Industry Annual Forecast/Industry Forecast (2009, 2010, 2011) Appraising Distressed Real Estate Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) APPRAISAL EXPERIENCE Preparation of appraisals for condemnation, tax appeal, financing, acquisition/disposal, and special assessment appeal. Properties appraised include nursing homes, hospitals, apartment complexes, office and industrial buildings, shopping centers, single family residences and development land. Specialize in litigation valuation of development land and commercial, industrial and investment properties. COURT EXPERIENCE Qualified as an expert witness in Hennepin County District Court, Isanti County District Court, Scott County District Court, and Commission Hearings in Carver County, Dakota County, Hennepin County, Rice County and Scott County. PATCHIN MESSNER RELATED EXPERIENCE APPRAISAL CLIENTS QUALIFICATIONS OF SHERRIL L. BRUMM (CONTINUED) North Star Chapter of the Appraisal Institute: Region III Alternate Representative - 2007 to 2012; Board of Directors - 2011 to 2013 Appraisal Data Network (ADN): Board of Directors — 2010 to 2019; President 2012/2013/2014 Faculty participant at the Minnesota Association of City Attorneys Educational Conference, 2013 Blue Cross and Blue Shield of Minnesota Bolton & Menk, Inc. Campbell Knutson, P.A. Dakota County Community Development Agency Authority Evergreen Land Services Company Foreman & Associates, LLC Fredrikson & Byron, P.A. Great River Energy Community Greater Minnesota Transmission, LLC Gregerson, Rosow, Johnson & Nilan, Ltd. Henning Professional Services, Inc. Hoff, Barry & Kozar, P.A. Independent School District 191 Independent School District 194 Jaspers, Moriarty & Walburg Johnson, Johnson, Burkhardt and Johnson, LLP Kennedy & Graven Leonard, Street & Deinard Lindquist & Vennum, LLP Maki & Overum Malkerson Gunn Martin LLP Melchert Hubert Sjodin, PLLP Metropolitan Council Minneapolis Community Planning and Economic Development (CPED) Minnesota Department of Transportation Minnesota Pipeline Company, LLC Peace Reformed Church Ramsey County Regional Railway Richfield H RA R. S. Eden Saint Paul Port Authority Shakopee Mdewakanton Sioux Shakopee Public Utilities Commission SRF Consulting Group, Inc. Stantec Stewart Title TCF Bank The Green Institute Three Rivers Park District Ulteig University of Minnesota Upper Midwest Management Walmart Wells Fargo Wilson Development Services, LLC WSB & Associates, Inc. Xcel Energy Cities: Bloomington, Burnsville, Cambridge, Carver, Chaska, Chanhassen, Cologne, Cottage Grove, Crystal, Elk River, Farmington, Golden Valley, Hastings, Hermantown, Lake Elmo, Lakeville, LeSueur, Lino Lakes, Minnetonka, Minnetrista, Monticello, New Brighton, New Prague, Plymouth, Prior Lake, Ramsey, Richfield, Robbinsdale, Rosemount, St. Paul, Savage, Shakopee, Victoria, Waconia, Wayzata, and West St. Paul Counties: Brown, Carver, Dakota, Hennepin, Ramsey, Rice, Scott PATCHIN MESSNER Valuation Counselors QUALIFICATIONS OF CHRISTINE L. MACKAMAN PROFESSIONAL AFFILIATIONS MAI, AI-GRS, Appraisal Institute Certified General Real Property Appraiser, Minnesota License No. 20517275 BUSINESS EXPERIENCE Patchin Messner Valuation Counselors, Principal, 2015 to Present CM Valuation, Principal, 2011 to Present Cassidy Turley, 2004-2010 Metropolitan Council, 2001-2004 EDUCATIONAL BACKGROUND Master of Urban and Regional Planning, University of Minnesota Bachelor of Arts Degree, Albion College SPECIALIZED REAL ESTATE Appraisal Institute Course Work: TRAINING Real Estate Appraisal Principles Basic Valuation Procedures Residential Case Study Standards of Professional Appraisal Practice Basic Income Capitalization Advanced Income Capitalization Highest & Best Use and Market Analysis Advanced Sales Comparison and Cost Approaches Report Writing and Valuation Analysis Advanced Applications Business Practice and Ethics Litigation Appraising: Specialized Topics and Applications The Appraiser as an Expert Witness Review Theory SEMINARS ATTENDED: Appraisal Institute Annual Real Estate Trends Annual Forecast/Industry Forecast Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) APPRAISAL EXPERIENCE Preparation of appraisals for eminent domain, estate planning, tax appeal, financing, and acquisition/disposal. Properties appraised include: hospitals, apartment complexes, office and industrial buildings, shopping centers, single family residences and development land. RELATED EXPERIENCE North Star Chapter of the Appraisal Institute: Secretary, present North Star Chapter of the Appraisal Institute: Government Relations Committee, present North Star Chapter of the Appraisal Institute: Region III Representative, past North Star Chapter of the Appraisal Institute: Candidate Guidance Committee Chair, past North Star Chapter of the Appraisal Institute: Board of Directors, past PATCHIN MESSNER Valuation Counselors UALIFICATIONS OF BRENT D. PEDERSON PROFESSIONAL AFFILIATIONS MAI Member, Appraisal Institute Certified General Real Property Appraiser, Minnesota License No. 20458803 Certified General Real Property Appraiser, North Dakota License No. CG-219104 BUSINESS EXPERIENCE Patchin Messner Valuation Counselors, Principal, 2019-Present Patchin Messner Valuation Counselors, Appraiser, 2004-2015, 2018-Present Mason, Bruce & Girard, Inc., Appraiser, 2015-2018 EDUCATIONAL WORK Bachelor of Science Degree, Real Estate University of Saint Thomas, St. Paul, MN SPECIALIZED REAL ESTATE Advanced Income Capitalization, Appraisal Institute TRAINING General Appraiser Market Analysis, Highest & Best Use, Appraisal Institute Real Estate Finance, Statistics & Valuation Modeling, Appraisal Institute General Appraiser Sales Comparison Approach, Appraisal Institute General Appraiser Report Writing & Case Studies, Appraisal Institute Advanced Concepts & Case Studies, Appraisal Institute Uniform Standards for Federal Land Acquisitions: Practical Applications, Appraisal Institute Solving Land Valuation Puzzles, Appraisal Institute Expert Witness for Commercial Appraisers, McKissock Educational Services General Demonstration Report — Capstone Program, Appraisal Institute Business Practices & Ethics, Appraisal Institute (2018) 2018-2019 National USPAP Course, American Society of Farm Managers & Rural Appraisers APPRAISAL EXPERIENCE Preparation of appraisals for conservation, estate planning, financing, condemnation, divestiture, and acquisition. Extensive appraisal experience in agricultural, recreation, and timberland properties. Appraisal experience also includes a wide range of commercial, industrial, and multi -family properties. Provided expert testimony in condemnation proceedings. APPRAISAL CLIENTS American Indian Comm. Development Agency Minnesota Pipeline Company INCLUDE Cass County Joint Water Resource District Old Dutch Foods Columbia Land Trust SRF Consulting Group Confederated Tribes of Grand Ronde Stimson Lumber Company Evergreen Land Services Company The Trust for Public Land Fidelity National Title Insurance Co. The Nature Conservancy Forest Investment Associates University of Minnesota Great River Energy U.S. Forest Service Hancock Timber Resource Group Weyerhaeuser Company John Hancock Life Insurance Company Williams Petroleum Services Minnesota Department of Transportation Xcel Energy Cities: Burnsville, Carver, Champlin, Cologne, Cottage Grove, Dundas, Minneapolis, Minnetonka, Monticello, Richfield, St. Bonifacius, St. Paul, Savage Counties: Dakota, Hennepin, Nicollet, Ramsey, Rice, Scott PATCHIN MESSNER Valuation Counselors Page 1 of 7 Standard Agreement For Professional Services 13065 Orono Parkway Elk River, MN 55330 STANDARD AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT (“Agreement”) is made this 18th day of May, 2020, between the City of Elk River, Minnesota (“City”), whose business address is 13065 Orono Parkway, Elk River, MN 55330 and Patchin Messner Valuation Counselors (“Consultant”) whose business address is 13961 West Preserve Boulevard, Burnsville, MN 55337. PRELIMINARY STATEMENT The City has adopted a policy regarding the selection and hiring of consultants to provide a variety of professional services for City projects. That policy requires that persons, firms, or corporations providing such services enter into written agreements with the City. The purpose of this agreement is to set forth the terms and conditions for the professional services Consultant will provide in connection with the 2020 Residential Land Appraisal Study, herein referred to as the “Work”. The City and Consultant agree as follows: 1.Work. The Consultant agrees to provide the professional services described in Exhibit A attached hereto (the “Work”). 2.Time for Performance of Services. The Consultant shall perform the services described in Exhibit A according to the schedule attached as Exhibit B, hereto. 3.Compensation for Services. City agrees to pay the Consultant $6,500 for the Work. Any changes in the scope of the Work which may result in additional compensation due to the Consultant shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. 4.The City agrees to provide the Consultant with the information required to complete the Work. 5.Method of Payment. The Consultant shall submit itemized bills for professional services performed under this Agreement on a monthly basis. Bills submitted shall be paid in the same manner as other claims made to the City. Page 2 of 7 Standard Agreement For Professional Services 6. Project Manager and Staffing. The Consultant has designated the individuals identified in Exhibit A as the Project Manager to serve on the Project. The Project Manager shall be assisted by other staff members as necessary to facilitate the completion of the Project in accordance with the terms established herein. Consultant may not remove or replace the Project Manager without the approval of the City. 7. Standard of Care. Standard of Care. Consultant shall exercise the same degree of care, skill and diligence in the performance of the Work as is ordinarily exercised by members of the profession under similar circumstances in Minnesota. Consultant shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Consultant’s breach of this standard of care. Consultant shall put forth reasonable efforts to complete its duties in a timely manner. Consultant shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Agreement. Consultant shall be responsible for costs or damages arising from unreasonable delays in the completion of the Work. 8. Audit Disclosure. The Consultant shall allow the City or its duly authorized agents reasonable access to such of the Consultant’s books and records as are pertinent to the work performed under this Agreement. Any reports, information, data, etc. given to, or prepared or assembled by, the Consultant under this Agreement which the City requests to be kept confidential shall not be made available to any individual or organization without the City’s prior written approval. All finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports prepared by the Consultant shall become the property of the City upon termination of this Agreement, but Consultant may retain copies of such documents as records of the services provided. 9. Term. The term of the Agreement shall be from May 18, 2020, through August 31, 2020, the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated. 10. Termination. This Agreement may be terminated by the Consultant effective upon sixty (60) days’ written notice delivered to the City at the address written above. The City may terminate this Agreement effective immediately, upon with notice to the consultant. Upon termination under this provision, the Consultant shall be paid for services rendered and reimbursable expenses until the effective date of termination. If, however the City terminates this Agreement because the Consultant has failed to perform in accordance with this Agreement, no further payment shall be made to the Consultant, and the City may retain another consultant to undertake or complete the Work. Page 3 of 7 Standard Agreement For Professional Services 11. Independent Consultant. At all times and for all purposes herein, the Consultant is an independent contractor and not an employee of the City. No statement herein shall be construed so as to find the Consultant an employee of the City. 12. Non-Discrimination. During the performance of this Agreement, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, or age. The Consultant shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. 13. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the prior written consent of the other party. 14. Services Not Provided For. No claim for services furnished by the Consultant not specifically provided for in Exhibit A shall be honored by the City. 15. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 16. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 17. Compliance with Laws and Regulations. In providing services hereunder, the Consultant shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. The Consultant and City, together with their respective agents and employees, agree to abide by the provisions of the Minnesota Data Practices Act, Minnesota Statutes Section 13, as amended, and Minnesota Rules promulgated pursuant to Chapter 13. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 18. Waiver. Any waiver by either party of a breach of any provision of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19. Indemnification. Consultant agrees to defend, indemnify and hold harmless the City and its officials, employees and agents from any liability, claims, damages, costs, Page 4 of 7 Standard Agreement For Professional Services losses judgments, or expenses, including reasonable attorney’s fees, resulting directly or indirectly from a negligent act or omission (including without limitation professional errors or omissions) of the Consultant, its agents, employees, or subcontractors in the performance of the services provided by this Agreement and against all losses by reason of the failure of said Consultant fully to perform, in any respect, all obligations under this Agreement. 19. Insurance. A. Certificate of Liability Insurance identifying the City of Elk River as an additional insured 20. Records Access. The Consultant shall provide the City access to any books, documents, papers, and records which are directly pertinent to the specific contract, for the purpose of making audit, examination, excerpts, and transcriptions, for three years after final payments and all other pending matters related to this contract are closed. 21. Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of the Agreement (“Information”) shall become the property of the City. The City may use the Information for its purposes and the Contractor also may use the Information for its purposes. Reuse of the Information for the purposes of the project contemplated by this Agreement (“Project”) does not relieve any liability on the part of the Contractor, but any reuse of the Information by the City or the Contractor beyond the scope of the Project is without liability to the other, and the party reusing the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. Final Documents shall be submitted in PDF format. 22. Subcontractor. The Consultant shall not enter into subcontracts for services provided under this Agreement except as noted in Exhibit A, without the express written consent of the City. The Consultant shall pay any subcontractor involved in the performance of this Agreement within the ten (10) days of the Consultant’s receipt of payment by the City for undisputed services provided by the subcontractor. If the Consultant fails within that time to pay the subcontractor any undisputed amount for which the Consultant has received payment by the City, the Consultant shall pay interest to the subcontractor on the unpaid amount at the rate of 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Consultant shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant shall be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. In addition, no subcontractor can file a lien against the City. Page 5 of 7 Standard Agreement For Professional Services 23.Dispute Resolution/Mediation. Each dispute, claim or controversy arising from or related to this Agreement or the relationships which result from this Agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of ninety (90) days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Elk River unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a Mediated Settlement Agreement, which Agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 24.Conflicts. No salaried officer or employee of the City and no member of the City Council of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. Any federal regulations and applicable state statutes shall not be violated. 25.Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. 26.Governing Law. This Agreement shall be controlled by laws of the State of Minnesota. Executed as of the day and year first written above. City of Elk River Company ______________________________ By:_________________________________ Mayor ______________________________ Its:_________________________________ City Clerk Project Managers Zack Carlton City of Elk River Phone: 763.635.1035 Email: ZCarlton@ElkRiverMN.gov Jason L. Messner Patchin Messner Valuation Counselors Phone: 952.895.1205 Email: messner@valuationcounselors.net Page 6 of 7 Standard Agreement For Professional Services Exhibit A Professional Service Deliverables 1. Professional consultation/appraisal work for a residential land valuation study. 2. Establish fair market value for multiple residential land classes. ▫ Low – less than 5 dwelling units per acre ▫ Medium – 5 to 8 dwelling units per acre ▫ High – greater than 8 dwelling units per acre; including small apartments (50 units or less), mid-size apartment (51 to 100 units), and large apartments (100+ units). 3. Prepare a report summarizing findings and the providing the average fair market value of the land classes. Page 7 of 7 Standard Agreement For Professional Services Exhibit B Task Date Notes/Deliverables Notice to Proceed Notice to proceed provided by the city Final Report May 18, 2020 NLT June 24, 2020 Consultant provide city with final report.