HomeMy WebLinkAboutMINUTES - 07131993 - 1.77 TO: BOARD 0F Surr,rzN`iS0ttS Contra
FROM: JOHN L. BIASOTTI,
ASSESSOR .' - `� Costa
County
DATE: JULY 8, 1993
;UBJECT: VIACOM CABLE TELEVISION APPRAISAL fy)
;PECIFIC REQUEST(S)OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
Approve and authorize the Chair, Board of Supervisors to execute a contract with
Desmond, Marcello and Amster in the amount of$85,000 for the provision of appraisal
services from the period June 15, 1993 through October 15, 1993.
FINANCIAL IMPACT:
This contract will be paid out of the Viacom trust fund established in the Auditor's
Office for the Ten County,Joint Appraisal of the Viacom Cable System.
BACKGROUND:
This contract relates to the Ten County Joint Appraisal of the Viacom Cable System.
The County Assessor requested Desmond, Marcello and Amster to value the
possessory interest rights of the nine Viacom CATV systems for ten counties in the
Northern California areas (Alameda, Butte, Colusa, Marin, Napa, San Francisco,
Shasta, Sonoma, Tehama, and Contra Costa). The appraisal that will be completed
by Desmond, Marcello and Amster will be funded by the ten counties. Each county's
share of this.expense was collected and placed in a trust fund established in the
Auditor's Office.
DNTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
_APPROVE OTHER
GNATURE S :
;TION OF BOARD ON
APPROVED AS RECOMMENDED OTHER
'E OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE EOARD
ABSENT: ABSTAIN: OF SUPERVISORS O TH40AT HOH'N.ATTESTEDContact: John L. Bid$ottl , 313-7426 PHIL B. HELRK OP"THE BOARD OF
cc: CAO SUPERVISORS AND COUNTY ADMINISTRATOR
2)�
BY
DEPUTY
or
"7 Number
Contra Costa County
Standard Form 1/87 SHORT FORM SERVICE CONTRACT Fund/Org #—
Account #
1. Contract Identification. Other #
Department: ASSESSOR
Subject: VIACOM CABLE TELEVISION APPRAISAL
2. Parties. The County of Contra Costa, California (County) , for its Department named
above, and the following named Contractor mutually agree and promise as follows:
Contractor: DESMOND, MARCELLO & AMSTER
Capacity:• APPRAISERS Taxpayer ID# 95-4354578
Address: 400 CORPORATE POINTE, STE. 700
CULVER CITY, CA 90230
3. Term. The effective date of this Contract is 6/15/93 and it
terminates 10/15/93 unless sooner terminated as provided herein.
4. Termination. This Contract may be terminated by the County, at its sole discretion,.
upon five-day advance written notice thereof to the Contractor, or cancelled immediately
by written mutual consent .
5. Payment Limit. County's total payments to Contractor under this Contract shall not
exceed $ 85,000
6. County's Obligations. In consideration of Contractor's provision of services as
described below, and subject to the payment limit expressed herein, County shall pay
Contractor, upon submission of a properly documented demand for payment in the manner and
form prescribed by County (Demand Form D-15) and upon approval of such demand by the head
of the County Department for which this Contract is made or his designee, as follows:
[Check one alternative only] hour; or
a. FEE RATE: $ per service unit: session, as defined' below; or
calendar (insert day, week
or month)
NOT TO EXCEED a total of service unit(s) .
b. Payment in full after approval by the Department .
X] c. As set forth in the attached Payment Provisions.
7. Contractor's Obligations. Contractor shall provide the following described services:
See attached letter dated May 17, 1993, from Desmond, Marcello & Amster for scope of assignment. The
delivery dates set forth in the letter have been modified as follows:
The following is due August 10, 1993:
- Capitalization Rate and justification of rate.
- Level of Income Rate and justification of level used in Direct Income method.
A draft of the complete appraisal is due September 1, 1993.
The final report is due within 21 days after receiving input from review of the draft report.
8. Compliance with Lay. Contractor shall be subject to and comply with all Federal,
State and local laws and regulations applicable with respect to its performance under this
Contract, including but not limited to, licensing, employment and purchasing practices;
and wages, hours and conditions of employment, including nondiscrimination.
9. Nondiscriminatory Services. Contractor agrees that all goods and services under this
Contract, shall be available to all qualified persons regardless of age, sex, race, reli-
gion, color, national origin, or ethnic background, or handicap, and that none shall be
used, in whole or in part, for religious worship or instruction.
Vau'A .2J.L%V J.14r, t.U rl I wu"I
Number
10. Independent Contractor Status This Contract is by and between two independent
contractors and is not intended to and shall not be construed to create the relationship
between the parties of agent servant, employee, partnership, joint venture, or
association.
11. Disputes. Disagreements between the County and Contractor concerning the meaning,
requirements, or performance of this Contract shall be subject to final determination in
writing by the head of the County Department for which this Contract is made or his
designee or in accordance with the applicable procedures (if any) required by, the State or
Federal Government.
12. Access to Books and Records of Contractor, Subcontractor. Pursuant to Section
1861(v)(1) of the Social Security Act, and any regulations promulgated thereunder,
Contractor shall, upon written request and until the expiration of four years after the
furnishing of services pursuant to this Contract, make available to the Secretary of
Health and Human Services, the Comptroller General, the County, or any of their duly
authorized representatives, this Contract and books, documents, and records of Contractor
that are necessary to certify the nature and extent of all costs and charges hereunder.
Further, if Contractor carries out any of the duties of this Contract through a sub-
contract with a value or cost of $10,000 or more over a twelve-month period, such sub-
contract shall contain a clause to the effect that upon written request and until the
expiration of four years after the furnishing of services pursuant to such subcontract,
the subcontractor shall make available, to the Secretary, the Comptroller General, the
County, or 'any of their duly authorized representatives, the subcontract and books, docu-
ments, and records of the subcontractor that are necessary to verify the nature and extent
of all costs and charges hereunder.
This special condition is in addition to any and all other terms regarding the maintenance
or retention of records under this Contract and is binding on the heirs, successors,
assigns and representatives of Contractor.
13. Reporting Requirements. Pursuant to Government Code §7550, Contractor shall include
in all documentsor written reports completed and submitted to County in accordance with
this Contract, a .separate section listing the numbers and dollar amounts of all contracts
and I subcontracts relating to, the preparation of each such document or written report.
This section "shall apply only if the payment limit under this Contract exceeds $5,000.
14. Indemnification. The Contractor shall defend, indemnify, save, and hold harmless the
County and its officers and employees from any and all claims, costs and liability for any
damages, sickness , death, or injury to person(s) or property, including without limitation
all consequential damages, from any cause whatsoever arising directly or indirectly from
or connected with the operations or services of the Contractor or its agents, servents,
employees or subcontractors hereunder, save and except claims or litigation arising
through the sole negligence or sole willful misconduct of the County or its officers or
employees. Contractor will make good to and reimburse the County for any expenditures,
including reasonable attorneys fees, the County may make by reason of such matters and, if
requested by the County will defend any such suits at the sole cost and expense of the .
Contractor.
15. Legal Authority. This Contract is entered into under and subject to the following
legal authorities: California Government Code Sections 26 d 31000.
16. Signatures. These signatures attest the part eement hereto:
COUNTY OF CONTRA COSTA, CALIFORNIA CTOR
By Y BY
Designee
Approv 0 ty Adm istrator (Designate official capacity
By-
Designee
Recomm, de iby De artm
By [Form approved by County .Counsel]
Payment Provisions
Contractor will bill County monthly as services are performed. See
Attachment "All below for Desmond, Marcello & Amster schedule of
fees.
ATTACHMENT A - DESMOND, MARCELLO & AMSTER
SCHEDULE OF FEES
The fees for appraisal services are based upon Desmond, Marcello&Amster's standard hourly rates.
These rates vary according to the category of individual assigned to the engagement. Desmond,
Marcello & Amster's standard rates follow:
At)t)raiser Category Standard Hourly Rate Court Hourly Rate
Principal $200 - S250 $250 - $300
Senior Manager $175 - $200 $200
Manager $150 - $175 $180
Senior Analyst $125 - $150 $175
Financial Analyst S100 - $125 N/A
Analyst $ 50 - $100 N/A
P.Z/3
MRY
CEIZIED ]DESMOND, MARCELLO &- AMSTER
May 17 1993 SUSU4ESS VALUATIONS SAY AREA OFFtce
400 CORPORATE PODrM.SUME 700
CONTRA CIOSI'A CULVER Crit, CALIFORNIA 90= sxi HEIDENIIERGER ROAD
COUNTY ASSESSOR (310)216-1400 CAKLANSUITE CAAW 24621
PAX; (310)216-M O.
(Sic)d3z3m
FAX:(510)635-0750
File No.: 2319
PERSONAL AND CONFIDENTIAL
May 17, 1993
Mr, John L. Biasotti
Assessor of Contra Costa County
934 Court Street
Martinez, Ca 94553-1795
Re: Request for Quotation - Possessory Interest Appraisal of Viacom International, Inc.
Dear Mr. Blasottl: ,
This letter is in response to your request for quotation of May 3, 1993. Desmond,Marcello&Amster
("DM&A") appreciates your interest in our firm by sending us this request.
;The Assignment
It is our understanding that.the assignment will be to value the possessory interest rights of nine
Viacom CAN systems for ten counties in the Northern California areas (Alameda. Butte, Colusa,
Contra Costa, Marin, Napa, San Francisco,Shasta,Sonoma and Tehama). Any valuation method we
develop should be basic and able to be utilized for the combined nine systems in the ten counties, or
to be able to be used for each county and/or system individually.
You have indicated that all basic approaches to value for taxable possessory interest rights should be
considered but not necessarily limited to a *direct' income approach, other income, market
comparison, and cost approaches.
As part of our valuation, we are to support the exclusion of non-taxable intangibles in our valuation
conclusions. This may require separate mirii-valuations within the larger valuation concept and/or
conclusions. We are also to be aware and demonstrate, to the extent practical, how the existence of
intangibles may enhance the value of possessory interests.
This assignment will require substantial research. All basic approaches to value will require
substantiation; even where an approach is found not to be appropriate, there must be substantiation
for why the approach is not used.
P.3/3
MAY 17 '93 179: ori:a
Mr. John L. Biasotti
May 17, 1993
Page Two
If a single approach is utilized, such as the direct income method, there will be need for a thorough
study of data available prior to the change in 1984 when fees became regulated. The history of this
prior period, including Congressional hearings and other parties personally involved in the fee
regulations should be contacted, in addition to review of articles,and so forth. Beyond the regulation
of fees(the 5%cap which could be charged by a community), comparison should be made with other
kinds of business uses, whether on private or public land,where a percentage of revenue is employed.
We see this research in support of our conclusion to be essential to its credibility.
Due Date
The request for proposal states that a draft and supporting materials must be submitted by July 1,
1993,and a finalized report by July 15, 1993. These dates are impractical due dates from our point
of view. DM&A is aware of the importance, the complications of this assignment, and the extensive
research that will be necessary. Accordingly, we respectfully submit that the earliest date in which
the needed work can be accomplished and a draft of the report readv for submission is on or about
September 1, 1993, with a finalized report date to remain open at this point.
bM&A presumes that the purpose of the draft report is to allow the Assessors time.for review and
comment. Thus, attempring to complete a report prior to a full review would not be practical and
DM&A is not in a position to control the timing of the Assessors'review. However, we would submit
the final report within 21 days of having that review, whether verbally or in writing.
Subcontracmrs and Other Outsiders
At this point, it is not possible for DM&A to determine whether any outside experts will need to be
. retained. During the course of our work an individual may be found who might be of unique
assistance. If such an individual comes to our attention, we will discuss with the Assessors the
qualifications of that individual and our reasoning for suggesting retention. To quote an estimated
fee for such an unknown individual is not practical at this time.
DIM&A Fee
Based on our review of this case and our perceived requirements, our fee estimate is the sum of
$85,000.
Again,thank you for your consideration of Dcsmond,Marcello&Amster for this interesting appraisal
engagement.
SinFMDestrond,
RCELL0 & AMSTER
GlviAI, ASA
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