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ST0502A-PR110329 (8/5/2011) Keith Marvin - Fwd: Freeport Parkway - ProposalPage 1 From: Michael Garza To:Keith Marvin Date: 3/29/2011 4:06 PM Subject: Fwd: Freeport Parkway - Proposal Attachments:Cover Letter and Contract.docx; Cover Letter and Contract.pdf >>> On 3/29/2011 at 3:24 PM, in message <689027.76617.qm@web81706.mail.mud.yahoo.com>, Jay Cullar <jaycullar@sbcglobal.net> wrote: Mike, Attached is a draft of what I have worked on today. Please feel free to make or suggest any changes. As stated previously, the proposal covers everything that we have encountered with our clients over the past decade. There is much in it that likely does not relate to Freeport Parkway. We simply include everything in the event you needed us for something else not previously discussed. The document is in MS Word format and PDF format. Please let me know if you have trouble opening the document. Cordially, Jay Cullar 14277 Preston Rd. #623 Dallas, TX 75254 Cell: 817-319-3900 Email: info@rowac.com ÎÑÉßÝôײ½ò ÎÉßÝ ×ÙØÌÑÚßÇÝÏË×Í×Ì×ÑÒÑÒÍËÔÌßÒÌÍ ïìîééÐÎòôÍêîí ÎÛÍÌÑÒÜË×ÌÛ ÜôÌÈéëîëì ßÔÔßÍ Ðæèïéíïçíçðð ØÑÒÛ ×ÒÚÑàÎÑÉßÝòÝÑÓ ÉÉÉòÎÑÉßÝòÝÑÓ March 29, 2011 Mr. Mike Garza, EIT City of Coppell Engineering Department P.O. Box 9478 Coppell, TX 75019-9478 Re: Freeport Parkway Improvement Project Dear Mr. Garza: It was a pleasure to meet with you yesterday. Thank you for taking the time to show me the project and explain some of the challenges the City faces. In our meeting, the thought occurred to me that the City might be concerned that we try to complete the project in as quick a manner as possible and then abandon the project. Yes, it is true that we do try to complete projects in a timely manner. However, we strive to maintain a relationship with our clients for many consecutive years. We only work in the Metroplex. We have been here exclusively since we were founded in 1986. We anticipate being able to serve the City and her residents for as long as the City desires. We have no requirement nor expectation to hurry property owners to make a decision. Our only goal is to serve the City in the manner the City requires. PROJECT SUMMARY After the meeting, I drove the project, have given additional thought to it and have a clearer understanding of what might be required to successfully complete it. The properties can be divided into two general categories: commercial and residential uses. Commercial Uses: The properties that are currently utilized as commercial uses should be fairly straight forward acquisitions. ECOM Real Estate Management: This should be a fairly straight forward acquisition. However, the property owner appears to be based in Boston, Massachusetts. It could prove to be a challenge to cause them to give the City’s project the attention that it deserves. We should take this into consideration when planning our course of action. It should be noted that ECOM and Amberpoint appear to be the same property owner. For our purposes, we treat these two properties as one negotiation. Alford Media Services: We have been a customer of Alford for the past 15 years. Their primary concern should be maintaining ingress and egress to their property for their suppliers and customers. Residential Uses: There are several potential challenges associated with the residential uses. If we were to work on the project, we would anticipate these challenges and create a plan for addressing the needs of the residents and owners. Stewart Family Living Trust: This property has significant items in the right of way including a metal fence and several mature trees which creates a pleasing residential atmosphere. In these situations, it is irrelevant that the trees may be hackberries. For the use and enjoyment of the property, they might as well be planted, ornamental trees. The proximity of the new road will, of course, cause the property owner concern. However, the property is still fully functional in the after condition with some modification of the existing improvements such as the fence, gate / driveway, and a plan to address the mature trees. Our approach to this acquisition would be to meet with the owner to 1) understand their concerns, and 2) determine if there was a way that we could re-create a similar or otherwise complementary use and feel for the continued enjoyment of the property owner. We have significant experience dealing with this type of intrusion into a residential property, and we believe that we can help walk the property owner through the process in a way that provides what the City needs, and takes into consideration the desires of the property owner. Property owners need to feel that their concerns are being treated seriously and that their needs are being taken into consideration and addressed. Frequently property owners feel powerless. If we can overcome those issues, we can make progress with a property owner. Likewise, there are property owners who believe that their concerns are the only things that matter and that the needs and desires of the community are irrelevant. Property owners who believe this way can be a significant challenge. Tate: This property appears to be significantly impacted by floodplain / floodway. We can learn more through further study. It may be that after the acquisition of this property, that the property has extremely marginal utility. We would prepare the City to consider the possibility of having to make an offer to acquire the entire property in the event it is determined that the property cannot be developed in the future. This is required by law in the event of creating an uneconomic remainder. Alexander: It appears that the project brings the ROW acquisition to within 10’ of the Alexander residence. Although the Stewart family may have been the most vocal property owner on the project, we consider this property to have similar issues to Stewart, and we would approach this property owner in the same manner as Stewart. Hardman: The primary concern that this property owner may have is likely to be replacement of paved parking currently enjoyed. We consider this to be a curable item. Generally speaking, property owners are concerned about how they will pay for the improvements to be replaced, and who will be performing the work. We will be prepared to answer all of the property owner’s concerns. Floodplain / Floodway It has been noted that the Tate, Alexander and Sorokwasz properties may be significantly impacted by floodplain and/or floodway. We are very familiar with the acquisition of properties significantly impacted in this manner. Attached is professional services contract we have used with our clients for the past decade. It is what we call an “evergreen” contract in that our clients can add or remove acquisitions as the need arises. Additionally, the services are a-la-carte in that the City can pick and choose what services they want for any particular need. For example: Basic Services: The Freeport Parkway project is one which would fall under the category of Basic Services in that the services required on the project are typical and customary of many other similar projects: determining ownership, meeting with property owners, satisfying concerns, addressing issues, obtaining signatures, et cetera. Additional Services: These services are used primarily for consulting assignments such as cost estimating or route studies. Additionally, anything the City requires that does not fit into the category of a “traditional” acquisition fall under this category. We want to be a team player with the City and blend into the City’s established customs as much as possible. Should we need to change anything in the proposed contact, please let me know and we will adjust it accordingly. Cordially, Jay Cullar Enclosure: Proposal ÎÑÉßÝôײ½ò ÎÉßÝ ×ÙØÌÑÚßÇÝÏË×Í×Ì×ÑÒÑÒÍËÔÌßÒÌÍ ïìîééÐÎòôÍêîí ÎÛÍÌÑÒÜË×ÌÛ ÜôÌÈéëîëì ßÔÔßÍ Ðæèïéíïçíçðð ØÑÒÛ ×ÒÚÑàÎÑÉßÝòÝÑÓ ÉÉÉòÎÑÉßÝòÝÑÓ March 29, 2011 Mr. Mike Garza, EIT City of Coppell Engineering Department P.O. Box 9478 Coppell, TX 75019-9478 Re: Proposal for right-of-way acquisition services for the City of Coppell Freeport Parkway Improvement Project Dear Mr. Garza: Thank you for considering ROWAC to assist the City of Coppell with the referenced project. We are familiar with the property and have outlined the most probable scope of services needed to acquire the necessary right-of-way. Title Research It is standard and customary that we must determine the ownership of properties and encumbrances of those properties prior to beginning the acquisition phase because these things can affect how the agents are to proceed. For this, or any other project where title insurance is not obtained, ROWAC proposes to perform a title abstract to determine the current ownership of all affected properties and any liens or encumbrances filed of record. It may be that some title clearing may become necessary depending upon what is discovered and the desires of the City. The extent of title clearing cannot be estimated with having first examined the title. Therefore, we cannot estimate the time that it will take to clear the title. Our experience has been that title can be cleared with approximately ten hours of work. ROWAC will perform the work at the previous agreed hourly rates. Acquisition ROWAC proposes to perform the necessary functions needed to secure the required right of way land rights by agreed compensation. For the purpose of this proposal, a parcel is defined as a contiguous tract of land owned by an individual ownership entity, i.e. nuclear family, partnership or corporation. Fees associated with negotiating with additional interest holders (tenants, landlords, attorneys, partners, other family members not authorized to convey title to the property, etc.) or for the acquisition of additional tracts of land owned by the same entity are listed as well. Basic Services required for this project will include ROWAC ordering all title commitments and abstracts, ordering appraisal services for various parcels if deemed necessary, making all contacts and negotiations with the property owners, soliciting signatures of owners of record, and preparing the file for condemnation in the event it becomes necessary. Appraisal Services ROWAC believes that clients should be prepared to order appraisal services in the event it is deemed appropriate. For budgeting purposes, we recommend that our clients allocate $5,000 in appraisal services per project in the event they become necessary. Appraisals are considered professional services and cannot be accurately quoted without detailed investigation of each affected parcel. In the event that appraisal services become necessary, we would propose having Jim Cullar with the firm of Evaluation Associates submit a proposal to the City directly for their appraisal services. Of course, ROWAC and Evaluation Associates will be pleased to work with the City regardless of the other’s involvement. ROWAC and Evaluation Associates are independently owned and operated. We have significant history with each other, and our procedures and policies work better together than those of other firms. Title Clearing / Title Curative Services On any given project, title curative or clearing services may or may not be required. In the event they are necessary, we invoice for these services on a time and materials basis at the hourly rates stated under Additional Services. For budgeting purposes, it has been our experience that a budget of $600 per parcel should cover title curative services in the event they become necessary. Additional Services Additional services include communications and negotiations with third parties having other interests in the same property which must be satisfied to convey unencumbered title, as specified by the City Attorney. Such parties could include lien holders, taxing authorities, tenants and heirs. These services will be invoiced on a time and materials basis at the hourly rate of $75 for Associates and $125 for Principals. Without review of title commitments or abstracts, it is not possible to estimate the amount of title curative or additional services accurately. Other additional services include those services not foreseen nor covered under Basic Services. Additional appraisal services, county recording/copy fees, courier fees and excess mileage charges are also treated as additional services and are billed at the actual or nominal expense. Cost and Fees ROWAC proposes the following fee structure. The fees are based on a per parcel basis and are a-la-carte meaning that only those services needed are performed and, therefore, invoiced. Additionally, the fees are based upon the most likely circumstances that ROWAC would encounter. Title Examination / Abstracts $200/parcel Acquisition Basic Services $2,300/parcel Additional parcels/owners $1,150/parcel/owner Title Clearing Impossible to estimate. For budgeting purposes allow $600/parcel Appraisal To be determined after review of engineering and at a later date. For budgeting purposes, allow $5,000 per project. Miscellaneous Fees For budgeting purposes $100/parcel County recording fees $35 per instrument FedEx $25/package Lone Star Overnight $15/package Hourly Fees (usually only required for title clearing or non-specific project or planning costs) Associates $75/hour Principals $125/hour Invoices ROWAC invoices clients on a milestone basis at various intervals. Milestones are generally considered as follows: 1)Making the firm offer – it is at this time that we have a clear understanding of the property and challenges faced having made property inspections and determined the ownership of the property. 2)After entering upon significant negotiations with the property owner. This is usually signified by having responded to all known property owner concerns in writing or having received a counter-offer from a property owner. 3)Upon signing or sending out the Final Offer letter which is approved by the City. 4)Delivering the completed file to the City after agreement or for condemnation in the event it becomes necessary. The vast majority of ROWAC’s acquisitions are performed for $2,300. Unique circumstances and City procedures dictate other services that may be required on a case- by-case basis. For ROWAC’s purposes, this proposal will suffice as a professional services agreement. Signing below will signify that the scope of services outlined in this proposal is agreeable, and we will begin work upon receipt of the engineering. Should a more formal agreement be required, we can submit one for your consideration or will be pleased to execute yours. The City of Coppell may cancel this contract or stop work on a project at any time, for any reason, with written notice. Fees and charges accrued to that point will be invoiced on the basis of milestones or actual time spent working on the project to the date of termination. Please do not hesitate to contact me if you have any question or if we can assist you in any way. Respectfully submitted, For ROWAC For the City of Coppell _______________________________ ________________________________ Jay Cullar, SR/WA Name: __________________________ Principal Title: ___________________________