4.9 SR 11-06-2023�,
Elk s �-
River
Request for Action
To Item Number
Ma Tor and CinT Council 4.9
Agenda Section Meeting Date Prepared by
Consent A enda NovembeY 6, 2023 Zack Carlton, Communittr Develo ment DirectoY
Item Description Reviewed by
Award Professional Services Contract: Residential Cal Portner, Ci r Administrator
Propert�r Valuation Stud�r for Park Dedication Reviewed by
Action Requested
Approve, byT motion, a Professional Services Contract with Patchin Messner Valuation Counselors to complete a
residential land valuation study.
Background/Discussion
The cityT has `vorked `vith Patchin Messner Valuation Counselors for t�vo previous residential land valuation
studies, first in 2016 and second in 2020. As they are familiar with the unique request, we solicited a proposal foY a
third studyT. The proposed contract amount of $6,000 is less than `vhat the cityT paid in 2020, and staff recommend
moving forward.
The studyT will provide three values for developable residential land of varyTing densities. The valuations will then
be used to establish a per unit rate for the cityT's park dedication fee.
The consultant expects to complete the study in earlyr DecembeY 2023. Staff will schedule a work session during
the next available meeting to review the findings.
Financial Impact
The proposal is $6,000 and can be paid for using Park Dedication Funds.
Mission/Policy/Goal
■ Supports the growth and development of the cityT's park and recreation amenities.
Attachments
■ PYofessional Services PYoposal dated OctobeY 13, 2023
■ Standard Agreement for Professional Services
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
PowEREo ar
�I'1 ����
Update�l• January 2023
�
October 13, 2023
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
ATCHIl� MESSNER
vA�uAT�o� cou�sE�oRs
Attn: Mr. Zacl< Carlton
Community Development Director
RE: Residential Land Valuation Study
Dear Mr. Carlton:
As requested, Patchin Messner Valuation Counselors is submitting the following proposal for
consultation services related to an updated residential land valuation study.
The purpose of the study is to establish fair marl<et value for three residential land classes, in
order to set the city's parl< 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; inc�uding small apartment (50
units or less), mid-size apartment (51 to 100 units), and large
apartment (100+ units)
Patchin Messner Valuation Counselors will conduct research and analyze residential land sales
in EII< 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 parl< dedication fees will be
examined.
• City of Elk River zoning and land use information
• Minnesota Statute 462.358 Subd. 2b. regarding parl< dedication fees
• Investigate comparable residential land sales
• Complete statistical analysis on observed market-transacted sale prices
Sunset Pond Executive Offices • 13961 West Preserve Boulevard • Burnsville, MN 55337
Phone: (952) 895-1205 • F�: (952) 895-1521
Patchin Messner Appraisals, Inc.
(dba: Patchin Messner Valuation Counselors)
City of Elk River
Residential Land Valuation Study
2
We propose to begin work on the study within 30 days of authorization, with a draft report to
be provided no later than December 8, 2023, and the cost of preparing the Residential Land
Valuation Study will not exceed $6,000.00.
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
�a�e�� �- �
Jason L. Messner, MAI, CRE
President
PATCHIIY MESSNER
Valuation Counselors
tuver
13065 OYono Parkway
Elk River, MN 55330
STANDARD AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT ("Agreement") is made this 6`i' day of November, 2023, between the
Cityr of Elk River, Minnesota ("City�'), whose business addYess is 13065 OYono PaYkway, Elk
River, MN 55330 and Patchin Messner Valuation Counselors ("Consultant") whose business
address is 13961 West Preserve Boulevard, Burnsville, MN 55337.
PRELIMINARY STATEMENT
The Cittr has adopted a policy regarding the selection and hiring of consultants to provide a
variettr of professional services for City projects. That polic�r requires that persons, firms, or
corporations providing such services enter into written agreements with the CittT. The
purpose of this agreement is to set forth the terms and conditions for the professional
services Consultant `vill provide in connection with the 2023 Residential Land Appraisal
Study, herein referred to as the "Work".
The CityT and Consultant agree as follo`vs:
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. Cityr agrees to payr the Consultant $6,000 for the
Work. AnyT changes in the scope of the Work `vhich mayT result in additional
compensation due to the Consultant shall require prior written approval byT an
authorized representative of the Cityr oY by the Cityr Council. The Cityr will not payr
additional compensation for services that do not have prior written authorization.
4. The CinT agrees to provide the Consultant `vith 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 monthl�r basis. Bills submitted shall
be paid in the same manner as other claims made to the Cit�T.
Page 1 of 7 Standard Agreement For Professional Services P 0�I E R E 0 e r
���V{� �
Project Manager and Staffing. The Consultant has designated the individuals
identified in Exhibit A as the PYoject Manager to serve on the PYoject The PYoject
Manager shall be assisted by other staff inembers as necessaryT 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 CinT.
7. Standard of Care. Standard of Care. Consultant shall exercise the same degree of
care, skill and diligence in the performance of the WoYk as is ordinarilyr 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 an�r injuries, loss, or damages pro�matelyT caused b�r Consultant's breach of this
standard of care. Consultant shall put forth Yeasonable effoYts to complete its duties
in a timelyT manner. Consultant shall not be responsible for dela�Ts caused byT factors
beyTond its control or that could not be reasonablyT foreseen at the time of execution
of this AgYeement Consultant shall be Yesponsible for costs oY damages arising
from unreasonable delayTs in the completion of the Work.
Audit Disclosure. The Consultant shall allow the CityT or its duly authorized agents
reasonable access to such of the Consultant's books and records as are pertinent to
the �uork performed under this Agreement. AnyT reports, information, data, etc.
given to, or prepared or assembled byT, the Consultant under this Agreement which
the Cityr Yequests to be kept confidential shall not be made available to an�r individual
or organization �vithout the CityT's prior �vritten approval. All finished or unfinished
documents, data, studies, surve�Ts, drawings, maps, models, photographs, and reports
prepared byr the Consultant shall become the pYopeYt�r of the Cityr upon teYmination
of this Agreement, but Consultant ma�T retain copies of such documents as records
of the services provided.
9. Term. The term of the Agreement shall be from November 6, 2023, through MayT
6, 2024, the date of signature by the parties not�vithstanding. This Agreement mayT
be extended upon the written mutual consent of the paYties foY such additional
period as theyT deem appropriate, and upon the terms and conditions as herein stated.
10. Termination. This AgYeement may be terminated by the Consultant effective upon
sixtyT (60) days' written notice delivered to the CityT at the address written above. The
Cit�J mayT terminate this Agreement effective immediatelyT, upon with notice to the
consultant Upon termination under this provision, the Consultant shall be paid for
services Yendered and reimbursable expenses until the effective date of termination.
If, howeveY the Cityr terminates this Agreement because the Consultant has failed to
perform in accordance with this AgYeement, no furtheY payment shall be made to the
Consultant, and the City- ma�T retain another consultant to undertake or complete the
Work.
Page 2 of 7 Standard Agreement For Professional Services P o M E R E 0 a r
���V{� �
11. Independent Consultant. At all times and foY all purposes herein, the Consultant
is an independent contractor and not an employee of the CityT. No statement herein
shall be construed so as to find the Consultant an employee of the Cityr.
12. Non-Discrimination. During the performance of this Agreement, the Consultant
shall not discrirninate against any employee or applicant for employment because of
race, color, creed, religion, national origin, sex, marital status, status with regard to
public assistance, disabilityr, oY 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 employTment The Consultant shall incorporate the foregoing
requirements of this paragraph in all of its subcontracts for program �vork, and `vill
require all of its subcontractors for such work to incorporate such requirements in all
subcontracts for program work.
13. Assignment. Neither parttT shall assign this Agreement, nor any interest arising
heYein, without the prior written consent of the otheY paYtyr.
14. Services Not Provided For. No claim for services furnished byT the Consultant not
specificallyT provided for in Exhibit A shall be honored by the CityT.
15. Severability. The provisions of this Agreement are severable. If anyT portion hereof
is, for anyT reason, held byT a court of competent jurisdiction to be contraryT to law,
such decision shall not affect the remaining provisions of this Agreement.
16. Entire Agreement. The enriYe agYeement of the paYties is contained heYein. This
AgYeement supeYsedes all oYal agreements and negotiations between the paYties
relating to the subject matter hereof as well as any previous agreements presently in
effect bet�veen the parries relating to the subject matter hereo£ AnyT alterations,
amendments, deletions, or `vaivers of the provisions of this Agreement shall be valid
on1yT `vhen expressed in writing and duly signed b�T the parties, unless otherwise
provided herein.
17. Compliance with Laws and Regulations. In providing services hereunder, the
Consultant shall abide byT all statutes, ordinances, rules and regulations pertaining to
the provisions of services to be provided. The Consultant and Cityr, togetheY with
their respective agents and employees, agree to abide by the provisions of the
Minnesota Data Practices Act, Minriesota Statutes Section 13, as amended, and
Minnesota Rules pYomulgated 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 CityT to immediatelyT
teYminate this Agreement.
18. Waiver. AnyT waiver byT either parnT of a breach of any provision of this Agreement
shall not affect, in an�r respect, the validityT of the remainder of this Agreement.
19. Indemnification. Consultant agrees to defend, indemnif�T and hold harmless the
CityT and its officials, emplo�Tees and agents from any liabilityT, claims, damages, costs,
Page 3 of 7 Standard Agreement For Professional Services P 0 M E R E 0 e r
���V��
losses judgments, or expenses, including Yeasonable attoYne�s fees, resulting directly
or indirectlyT from a negligent act or omission (including `vithout limitation
pYofessional errors oY omissions) of the Consultant, its agents, employees, oY
subcontractors in the performance of the services provided byT this Agreement and
against all losses byT reason of the failure of said Consultant fu11yT to perform, in anyT
respect, all obligations under this Agreement.
19. Insurance. Certificate of LiabilityT Insurance identifyTing the CityT of Elk River as an
additional insured.
20. Records Access. The Consultant shall provide the CityT access to any books,
documents, papers, and records which are directlyT pertinent to the specific contract,
for the purpose of making audit, examination, excerpts, and transcriptions, for three
y ears after final pay-ments and all other pending matters related to this contract are
closed.
21. Ownership of Documents. All plans, diagrams, analyTses, reports and information
generated in connection with the performance of the Agreement ("Information")
shall become the pYopeYtyr of the Cityr. The Cityr mayr use the InfoYmation foY its
purposes and the Contractor also mayT use the Information for its purposes. Reuse
of the Information for the purposes of the project contemplated by this Agreement
("Project") does not relieve anyT liabilityT on the part of the Contractor, but anyT reuse
of the Information by the Cityr or the ContYactor beyond the scope of the Project is
`vithout liabilityT to the other, and the parnT reusing the Information agrees to defend
and indemnify the other from anyT claims or liabilityT 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
`vritten consent of the CityT. The Consultant shall payT any subcontractor involved in
the performance of this Agreement within the ten (10) days of the Consultant's
receipt of payTment byT the CinT for undisputed services provided byT the
subcontractor. If the Consultant fails within that time to pay the subcontractor any
undisputed amount for which the Consultant has received payTment by the CityT, the
Consultant shall payT interest to the subcontractor on the unpaid amount at the rate
of 1.5 percent per month or any part of a month. The rninimum monthly inteYest
penalnT payTment for an unpaid balance of $100 or more is $10. For an unpaid
balance of less than $100, the Consultant shall payr the actual interest penaltyr 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 attorneyT's fees, incurred in bringing the action. In addition, no
subcontractor can file a lien against the CityT.
23. Dispute Resolution/Mediation. Each dispute, claim or controversyT arising from
or related to this Agreement or the relationships `vhich result from this Agreement
Page 4 of 7 Standard Agreement For Professional Services P 0 M E R E 0 e r
���V��
shall be subject to mediation as a condition pYecedent to initiating aYbitration oY legal
or equitable actions by either partyT. Unless the parties agree other�vise, the
mediation shall be in accordance with the Commercial Mediation Procedures of the
American Arbitration Association then currentlyT in effect. A request for mediation
shall be filed in `vriting with the American Arbitration Association and the other
partyT. No arbitration or legal or equitable action ma�T be instituted for a period of
ninety (90) days from the filing of the Yequest for mediation unless a longer period of
time is provided by agreement of the paYties. Cost of inediation shall be shaYed
equallyr between the paYties. Mediation shall be held in the Cityr of Elk RiveY unless
anotheY location is mutually agYeed upon byr the parties. The parties shall
memorialize anyT 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 employTee of the CinT and no member of the CinT
Council of the CityT shall have a financial interest, direct or indirect, in this
Agreement The violation of this provision renders the Agreement void. r�ny
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 la�vs of the State of
Minnesota. Executed as of the dayT and year first written above.
City of Elk River
May or
Cit�T Clerk
Project Managers
Zack Carlton
Cit�T of Elk River
Phone: 763.635.1035
Company
Jason L. Messner
Patchin Messner Valuation Counselors
Phone: 952.895.1205
Email: ZCarlton@E1kRiverMN.gov Email: messner@valuationcounselors.net
Page 5 of 7 Standard Agreement For Professional Services P 0 M E R E 0 e r
���V{� �
Exhibit A
Professional Service Deliverables
1. Professional consultation/appraisal `vork for a residential land valuation studyT.
2. Establish fair market value for multiple residential land classes.
� Lo�v — less than 5 dwelling units per acre
� Medium — 5 to 8 d`velling units per acre
� High — greater than 8 d`velling units per acre
Prepare a report summarizing the findings and the providing the average fair market
value of the land classes.
Page 6 of 7 Standard Agreement For Professional Services P 0 M E R E 0 e r
���V{� �
Exhibit B
Task
Date
Notes/Deliverables
Notice to Proceed
Final Report
November 6, 2023
December 13, 2023
Notice to proceed provided byT the city
Consultant provide cityT �vith final report.
Page 7 of 7 Standard Agreement For Professional Services P u M E R E 0 a r
���V{� �