Item 12 Staff Report Accept Report on Whether Thomas Kerr Has a Conflict of Interest in Preparing a Mobile Home Park Conversion Impact ReportMEETING DATE: 9/8/98
ITEM NO. /9..\
COUNCIL AGENDA REPORT
DATE: August 26, 1998
TO: MAYOR AND TOWN COUNCIL ''//
FROM: ORRY P. KORB, ESQ. TOWN ATTORNEYQY
SUBJECT: ACCEPT REPORT ON WHETHER THOMAS KERR HAS A CONFLICT OF INTEREST IN
PREPARING A MOBILEHOME PARK CONVERSION IMPACT REPORT.
RECOMMENDATION:
Accept report on whether Thomas Kerr has a conflict of interest in preparing a mobilehome park conversion impact
report.
DISCUSSION:
A question was raised during public comment at the Town Council meeting on August 10, 1998 about whether Thomas
Kerr has a conflict of interest based on his ownership interests in mobilehome parks. During the meeting, the Town
Attorney referred to a letter from Mr. Kerr requesting an opinion on the same question. Council requested a report back.
Attached is a copy of a letter to Mr. Kerr dated August 25, 1998 in which the Town Attorney advised that Mr. Kerr does
not have a conflict of interest.
Attachments:
Distribution:
Letter dated August 25, 1998 from Town Attorney to Thomas Kerr
Thomas P. Kerr, 3807 Pasadena Ave., Suite 100, Sacramento, CA 95821
PREPARED BY: ORRY P. KORB, ESQ., TOWN ATTORNEY
OPK/ct
Reviewed by: kWIL Manager Finance
Revised: 8/26/98 2:01 pm
Reformatted: 10/23/95
File# 301-05
TOWN OF Los GATOS
Town Attorney's Office
408/354-6880
August 25, 1998
Thomas P. Kerr, President
Thomas P. Kerr, Inc.
3807 Pasadena Avenue, Suite 100
Sacramento, CA 95821
RE: AGREEMENT FOR MOBILEHOME PARK CONVERSION
CONSULTING SERVICES -- CONFLICT OF INTEREST
Our File: 1408-05
Dear Mr. Kerr:
CIVIC CENTER
110 E. MAIN STREET
P.O. Box 949
Los GATOS, CA 95031
In a letter dated July 29, 1998, you requested my advice on whether you have a conflict of
interest.in preparing a closure impact report for the Los Gatos Mobilehome Park. Specifically;
you asked whether you may provide this service under contract with the Town given your
ownership interests in mobilehome parks. As discussed below, you do not have a conflict of
interest that bars you from providing this contract service to the Town.
FACTS
You advised that you have ownership interests in mobilehome parks located in California (in the
Sacramento area) and Oregon, but have no business holdings or other financial interests in the
Town or elsewhere in Santa Clara County. You also stated that you write a monthly newsletter
which, though aimed at park owners, is circulated to other segments of the mobilehome park
industry. Your newsletter subscribers list includes the owners of the Bonnie View Mobilehome
Park in Los Gatos. The owners of the Los Gatos Mobilehome Park are not subscribers. A
subscription to your newsletter costs $125 per year.
Your task under contract with the Town is to gather data and prepare a closure impact report as
required by the Town Code and State law. That report serves as an information tool for use by
residents of the mobilehome park and the Town in considering an application to convert the Los
Gatos Mobilehome Park to another use. The report reaches no conclusions and makes no
recommendations. Completion of the report does not constitute or mandate an action by the
Town. Your contract specifies that you act as an independent contractor with full control over
the manner in which you perform your contractual obligations.
ATTACHMENT 1.
INCORPORATED AUGUST 10, 1887
Thomas P. Kerr, President
August 25, 1998
Page 2
ANALYSIS
Your question requires examination of both the California Political Reform Act, Government
Code § 81000 et seq. (the "Act"), and the common law doctrine of conflicts of interest.
Political Reform Act
The Act sets forth rules concerning potential conflicts of interest that are applicable to officers
and employees of the Town, and to certain consultants. Because you work under contract to the
Town, you are subject to the Act only if you are a "consultant" as defined by the Act. To qualify
as a consultant under the Act, you must either be delegated specified decision -making authority
or function as an officer or employee of the Town. 2 Ca1.Adm.C.§ 18700. Here, there is no
evidence of any delegation of decision -making authority, nor is there evidence that you function
as an officer or employee of the Town.
Your contract with the Town requires you to gather data and then prepare a report to be used by
the Town, the park owner and the park residents as an informational tool in addressing the
conversion application. In addition, your contract expressly states that, as an independent
contractor, you do not act as an officer or employee of the Town. Neither State law nor the
Town Code expressly or impliedly delegate the preparation of the report to officers or employees
of the Town. Consequently, while you are a consultant to the Town in the normally understood
sense, being a person who provides expert professional advice, you are not a consultant under the
Act, and, therefore, you are not subject to its provisions.
Nevertheless, as discussed below, even if you were subject to the Act, you would not have a
financial interest that, if material, could constitute a conflict of interest.
Common Law Doctrine of Conflicts of Interest
Under the common law doctrine of conflicts of interest, a public officer is impliedly bound to
exercise the powers conferred on him or her with disinterested skill, zeal, and diligence and
primarily for the benefit of the public. Noble v. City of Palo Alto (1928) 89 Ca1.App. 47, 51.
This doctrine has been utilized in situations where the Political Reform Act does not apply, but
where the financial or personal interests of a decision -maker are nevertheless implicated. Clark
v. City of Hermosa Beach (1996) 48 Cal.App.4th 1152.
Based on the information you have provided, other than the subject contract, you have no
relevant financial interest in the Town or in Santa Clara County, which includes the mile area
studied for purposes of the Report. Your closest financial interest is in a mobilehome park
located in the Sacramento area. While two parties in Los Gatos subscribe to your newsletter, the
Thomas P. Kerr, President
August 25, 1998
Page 3
owner of the Los Gatos Mobilehome Park is not a subscriber and, therefore, is not a source of
income to you. You have provided no other facts that indicate that you have any financial or
personal interest in the Los Gatos Mobilehome Park or in the contents of the report. It is useful
to note in this context that the report is only an informational document and does not mandate
any specific action.
The mere fact that you are a park owner does not, in itself, constitute a conflict. Rather, your
experience as a park owner and conversion consultant was the basis of the Town's determination
that you are an expert in the mobilehome industry and, therefore, qualified to provide the
required services. The Town could not legally award the contract to you without first
determining that you are qualified.
CONCLUSION
Without evidence of a financial or personal interest in the proposed conversion of the Los Gatos
Mobilehome Park or in the contents of the closure impact report, there is no basis to conclude
that you have a conflict of interest in providing contract services to the Town. If there are any
additional facts that should be considered, please disclose them to me immediately. In addition,
if you obtain any interest that may give rise to a conflict, again please notify me immediately.
Verxtruly your,
Orry P. Korb
Town Attorney
OPK/ct
N:1ATY\KERR.LTR
cc: David W. Knapp, Town Manager
Lee E. Bowman, Planning Director
Town Council Minutes September 8, 1998
Redevelopment Agency Los Gatos, California
LANDSCAPE MAINTENANCE SERVICES AUTHORIZATION (11.28)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, to authorize a budget increase of $2,050
funded from fund balance (255-36000) for Landscape Maintenance services. Carried by a vote
of 4 ayes. Mr. Attaway absent.
MOBILEHOME PARK CONVERSION IMPACT REPORT/CONFLICT OF INTEREST (12.19)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council accept and file report on
whether Thomas Kerr has a conflict of interest preparing a mobilehome park conversion impact
report. Carried by a vote of 4 ayes. Mr. Attaway absent.
GENERAL PLAN TASK FORCE II/VACANCIES (13.20)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council accept and file report
regarding two vacancies on the General Plan Task Force II Committee. Carried by a vote of
4 ayes. Mr. Attaway absent.
BICYCLE ADVISORY COMMITTEE/SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
APPOINTMENT OF REPRESENTATIVE/RESOLUTION 1998-138 (14.20)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-138
entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPOINTING A REPRESENTATIVE
TO THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY COUNTYWIDE
BICYCLE ADVISORY COMMITTEE. Carried by a vote of 4 ayes. Mr._ Attaway absent.
ETHER OXYGENATES PROHIBITED/(MTBE)/MOTOR FUEL/RESOLUTION 1998-139 (15.14)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-139
entitled, RESOLUTION OF THE TOWN OF LOS GATOS REQUESTING THE GOVERNOR
AND THE LEGISLATURE TO PROHIBIT THE USE OF METHYL TERTIARY -BUTYL
ETHER (MTBE) OR OTHER ETHER OXYGENATES IN MOTOR FUEL. Carried by a vote
of 4 ayes. Mr. Attaway absent.
MAIN STREET 34/COMPLETION NOTICE/RESOLUTION 1998-140 (16.09)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-140
entitled, RESOLUTION OF THE TOWN OF LOS GATOS ACCEPTING WORK OF DAVE
FLICK, DEVELOPER, (FLICK ENTERPRISES. INC.) 34 EAST MAIN STREET AND
AUTHORIZING THE TOWN MANAGER TO EXECUTE CERTIFICATE OF ACCEPTANCE
AND NOTICE OF COMPLETION FOR RECORDING BY TOWN CLERK. Carried by a vote
of 4 ayes. Mr. Attaway absent.
DOWNTOWN STREETSCAPE PLANTERS/PROJECT 9709/RESO 1998-141 (17.35)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-141
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AND THE TOWN
REDEVELOPMENT AGENCY ACCEPTING WORK OF GOLDEN BAY CONSTRUCTION
PROJECT 9709 - DOWNTOWN STREETSCAPE PLANTERS - PHASE II AND AUTHORIZING
THE MAYOR/EXECUTIVE DIRECTOR TO EXECUTE CERTIFICATE OF ACCEPTANCE
AND NOTICE OF COMPLETION FOR RECORDING BY THE TOWN CLERK/SECRETARY
TO THE AGENCY, Carried by a vote of 4 ayes. Mr. Attaway absent.
TC: D10: MM090898
3
FAXED
Town of Los Gatos
Town Attorney's Office
110 E. Main Street
P.O. Box 949
Los Gatos, CA 95031
(408) 354-6880
Fax: (408) 354-8431
DATE: June 1, 1998 Confirmation copy mailed: /Y/ No
TO: Thomas P. Kerr
FAX: 916-971-1849
SENDER: Orry P. Korb, Town Attorney
SUBJECT: Agreement for Mobilehome Park Consulting Services
YOU SHOULD RECEIVE PAGE(S), INCLUDING THIS COVER SHEET. IF YOU
[DO NOT RECEIVE ALL THE PAGES, PLEASE CALL1408) 354-6880.
MESSAGE:
TOWN OF Los GATOS
Town Attorney's Office
408/354-6880
June 1, 1998
VIA FACSIMILE & U.S. MAIL
Thomas P. Kerr, Inc.
3807 Pasadena Ave., Suite 100
Sacramento, California 95821
Attention: Thomas P. Kerr, President
RE: Agreement for Mobilehome Park Consulting Services (AGR:98:023)
Our File: 1408-05
Dear Mr. Kerr:
CIVIC CENTER
110 E. MAN STREET
P.O. Box 949
Los GATOS, CA 95031
This will confirm that the Town of Los Gatos waives the requirement found at section 15.A.iv of
the above agreement that you maintain professional liability insurance in amounts not Less than
$1,000,000. As we discussed, this insurance is not applicable to the type of consulting services
provided pursuant to the agreement.
This will also confirm that I cannot authorize a waiver of the Town policy requiring primary
coverage endorsements for the insurance required by the agreement.
If you have any questions, please contact my office.
Ve truly yours,
4f
---��fJ
Orry P. Korb
Town Attorney
OPK:/ct [N:\ATY1K&RR.LTRJ
cc: Lee Bowman, Planning Director
D.W. Knapp, Town Manager
INCORPORATED AUGUST 10, 1887
06/01/98 14:41 FAX 916 P 1849 THOS P KERR INC
Eol
THOMAS P. KERR, Inc.
Management and Consulting Services
June 01, 1998
Orry P. Korb, Town Attorney
Town of Los Gatos
POB 949
Los Gatos, CA 95031
RECEIVED
JUN - 1 1998
TOWN ATTNY
3807 Pasadena Ave_, Suite 100
Sacramento, California 95821
Telephone: (916) 971-0489
Via Fax: 408-364-8431
REF: Agreement for Mobilehome Park Consulting Services
(AGR:98:023)
Dear Mr. Korb:
I've run into another problem with the insurance requirements of the above -referenced
agreement and would appreciate your consideration of the matter.
Paragraph 15.B.ii. requires that the consultant's insurance be "primary insurance.' The
insurance information received from the Town Clerk specifies certain language that is
required relative to "primary.' coverage.
Attached is a memorandum from my insurance broker regarding the Town's
requirement. The broker and I recognize why a contractor or developer is required to
provide 'primary" coverage. In my case, the only activities in which I will be engaged
are meetings in the offices of the Town itself, or on the property of Los Gatos Mobile
Home Park. As a consultant who will be doing research and writing a report, I will not
be exposing the Town to the same risks as someone undertaking construction or other
physical work in or for the Town.
I am writing to request that the side letter you proposed to delete the requirement for $1
million professional liability insurance also delete the requirement that my general
liability be "primary.'
Thank you for your assistance.
omas P. Kerr, President
Mobilehome Parks Consultant
06/01/98 14:41 FAX 916 5— 1849
THOS P KERR INC
�02
Gallagher Alliance Insurance
7600 N. 1 Oth St., Suite 201
Phoenix AZ 35020-4447
Phone : 602-296-7600
Thomas P. Kerr Inc., Mal
3607 Pasadena Ave. Suns 100
S.oromento CA 96621
•
MEMO
:�EtdtiAT760-
KERRT 1
RA 06/04/65
uszermbscii
PC KG 02/15/96 02/15/90
As per cur discussion on the phone earlier today, unfortunately your
current policy coverage will not be able to respond as per the
requitement of the Town of Los Gstoe. The only way we would be able to
meet the cif 's requirement. is to have you take out a separate policy
for yOur office with Odyssey Reinsurance Company. This coverage would
be .7 "- • in annual premium than what you are currently paying
now *r "r'--- • er "oonsultin " t • orations.
he wording the Torn of Los Gatoe is using really isn't applicable or
nsoeasary for the type of operations you'll be carrying out, i.e.,
consulting work. This wording camas sn to play most frequently on
contracting vor]c, or construction work being done by a oompany on the
Town's behalf. In that case it is both necessary and frequently used.
Sowever it really isn't applicable in your case. It would be n.ee if
the city would back off of the requirement as respects PRIMARY
ooverige, since it's really overkill in this case.
In a yy , •-« =omen coverage pre •-a PREMISES operations or
OL&T tyyppee of coverage (Owners, Landlords, Tenant's) as opposed to
"consulting" operation4 which fella under NSC types of coverage
(Manufacturer's & Contractor's). SO unfortunately your current
policy o uldn'tau over you
uf(er thLs •xpoo�ure. Please let me know if X
Rob Griffin
-05
y 77/7716?5- ps/
TOWN NEWS
Council says mobile -home -park
closure process � Pds refining
By JEFF KEARN" �Q
Last week's Town (" 't
mobile -home -pa,'
into a sometimes ,
Silicon Valley's ho,
Councilmembers
changes to the town's
ing mobile -home park.
the town's two parks fea.
lose their homes if the pai
oped out of their financial r1/4
The new ordinance wo..,1 require
mobile -home parks, if replaced, to offer
the same amount of housing at the same
affordability levels as before.
The council decided that there were too
many loose ends with the two proposed
amendments, and voting unanimously
against adopting the new guidelines, it sent
the proposal back to the General Plan
Committee and the Rent Advisory Com-
mittee for further discussion this summer.
Residents say they need to be protect-
ed from having their parks turned into
luxury condos.
"I can't afford to live anywhere else right
now. I'm on State Supplemental Income
and my daughter is disabled, and if the park
gets closed I don't know where we're going
to go," park resident Paula Alves said.
Many other park residents echoed her
concerns, including seniors, college stu-
dents and single parents who said they
were lucky to have an affordable place to
live in Los Gatos. Some parents said that
their kids would be forced to leave Los
Gatos schools if the park closes, because
they won't be able to live in town.
At issue is how much the town can do to
protect the existing supply of affordable
housing without putting too much of a bur-
den on park owners.
"Government can only do so much, and
we can't force any mobile -home -park
owner to stay in business," Councilmem-
ber Randy Attaway said.
Park owners say the regulations are
already too stringent and treat them
unfairly compared to apartment owners.
"I'm vehemently opposed to this ordi-
' said Gerald Mirassou, who owns
,ie View Mobile Home Park on
i. "Los Gatos has decided to
e-home parks a repository for
ierate-income housing."
_Iced apart the proposed ordi-
.. May 4 letter to the town, which
"Draconian" regulations effectively
..orce park owners to subsidize affordable
housing for their residents. He also asked
that any ordinance be more specific in
including units owned by the park or the
occupant when closure studies are prepared.
Currently, the town requires that any
mobile -home -park conversion provide at
least as many units of very low-, low- and
moderate -income housing units as were
previously on the site. Additionally, who-
ever applies for the conversion must out-
line plans for accommodating displaced
park residents during construction.
But future development on the site of a
park is effectively limited in size —and
profitability —by the requirements: Any
additional development on top of the units
that replace mobile homes will increase
the density of the development. And the
denser the project, the less likely it is to
gain approval in the town of Los Gatos.
The new ordinance, if passed, would not
affect the zoning of the site.
The proposed ordinance would add two
additional considerations to the guidelines
for closing mobile -home parks, which cur-
rently states that "any proposal to convert
a mobile -home park to a residential devel-
opment shall provide at least as many low-
cost housing units as could be accommo-
dated within the existing park's capacity."
Barry Swenson Builders has filed an
application to convert the Los Gatos
Mobile Home Park at 484 Woodland Ave.
The application is still pending, but the
necessary report won't be able to move
forward until the town finalizes its rules for
the process. The General Plan Committee
originally suggested revisiting the closure
rules in 1997 when it suggested updates to
the general plan's housing element. Both
parks have about 75 units.
iya51-dc
TOWN OF Los GATOS
Town Attorney's Office
408/354-6880
May 13, 1998
Thomas P. Kerr, President
Thomas P. Kerr, Inc.
3807 Pasadena Ave., Suite 100
Sacramento, CA 95821
RE: Agreement for Mobilebome Park Consulting Services
(AGR:98:023)
Dear Mr. Kerr:
CIVIC CENTER
110 E. MAIN STREET
P.O. Box 949
Los GATOS, CA 95031
You asked whether we would need to amend the agreement in order to delete the requirement for
$1 million of professional liability insurance. I believe that the Town can simply waive this
requirement, which we would do by a side letter when the contract is executed.
Please contact me if you have any additional questions.
Very truly yours,
Orry P. Korb
Town Attorney
cc: Lee Bowman, Planning Director
OPK:ct/wp [N WTYUCERR.LTRj
INCORPORATED AUGUST 10,1887
Ca
04/27/98 11:54 FAX 916 971 1849 THOS P KERR INC
101
iv A6
gir
THOMAS P. KERR, Inc.
Management and Consulting Services
April 27, 1998
Orry P. Korb, Town Attomey
Town of Los Gatos
POB 949
Los Gatos, CA 95031
RECEIVED
NPR >..t A
TOWN ATTNY
REF: Agreement for Mobilehome Park Consulting Services
(AGR:98:023)
Dear Mr. Korb:
3807 Pasadena Ave., Suite 100
Sacramento. California 95821
Telephone: (916) 971-0489
Via Fax: 408-354-8431
Thank you for speaking with me last Thursday when I was in Oregon. Your prompt
consideration of my fetter of April 21 to you is appreciated.
You indicated that you are willing to waive or delete the requirement for $1 million in
professional liability insurance. Do we need an amendment to the Agreement to
accomplish this? If so, will you prepare it? Or do we just simply strike the paragraph
You explained that there had been a mistake in the rates for "Compensation for
Additional Services," but that it cannot be corrected at this time without going back
before the Town Council. We agreed that if the Town requests additional services
beyond the scope of the Agreement, an Amendment would be prepared at that time
specifying the services and applicable rates.
You suggested that I work with Lee Bowman, Town Planning Director, to get specific
written consent for the subcontractors who comprise the "team" in my Response to the
RFP.
We concluded that the way to deal with my concem about the clock starting before
actual work on the assignment could begin, is to execute the Agreement on or just
before the day of Scoping Meeting. I plan to send in my application for the Town
business license within the next day or two, so that will be taken care of as well.
Thank you for your assistance.
rT
cerely,,.�A,� ,
omas P. Kerr, President
Mobilehome Parks Consultant
AN
9ff"
THOMAS P. KERR, Inc.
Management and Consulting Services
April 27, 1998
Orry P. Korb, Town Attorney
Town of Los Gatos
POB 949
Los Gatos, CA 95031
3807 Pasadena Ave., Suite 100
Sacramento, California 95821
Telephone: (916) 971-0489
RECEIVED
APR 2 9 1998
Via zr14i'ig431
REF: Agreement for Mobilehome Park Consulting Services
(AGR:98:023)
Dear Mr. Korb:
Thank you for speaking with me last Thursday when I was in Oregon. Your prompt
consideration of my letter of April 21 to you is appreciated.
You indicated that you are willing to waive or delete the requirement for $1 million in
professional liability insurance. Do we need an amendment to the Agreement to
accomplish this? If so, will you prepare it? Or do we just simply strike the paragraph?
You explained that there had been a mistake in the rates for "Compensation for
Additional Services," but that it cannot be corrected at this time without going back
before the Town Council. We agreed that if the Town requests additional services
beyond the scope of the Agreement, an Amendment would be prepared at that time
specifying the services and applicable rates.
You suggested that I work with Lee Bowman, Town Planning Director, to get specific
written consent for the subcontractors who comprise the "team" in my Response to the
RFP.
We concluded that the way to deal with my concern about the clock starting before
actual work on the assignment could begin, is to execute the Agreement on or just
before the day of Scoping Meeting. I plan to send in my application for the Town
business license within the next day or two, so that will be taken care of as well.
Thank you for your assistance.
(Sicerely,
T omas P. Kerr, President
Mobilehome Parks Consultant
MEMORANDUM
DATE: April 24, 1998
TO: Lee Bowman, Planning Director
FROM: Orry P. Korb, Town Attorney'
SUBJECT: Agreement for Mobilehome Park Conversion Consulting Services
Consultant: Thomas Kerr
Our File: 1408-05.06
As we discussed, I reviewed a faxed letter from Mr. Kerr concerning several issues about the terms
of the above agreement, and then spoke with him by phone on April 24, 1998. This will summarize
his points and my responses.
1. Kerr said that he cannot meet the $1 million E& 0 requirement for a reasonable price. I
responded that the professional services he provides are low risk, and that this requirement can be
waived without returning to Council.
2. Kerr pointed out that the rates set forth in the Compensation for Additional Services
paragraph are incomplete. This was an error resulting from my use of the analysis of the various
proposals. I responded that the amount of compensation is a significant term of the agreement and
cannot be changed without Council approval. However, these rates only apply to additional services
performed at the request of the Town. Thus, there is no reason to return to Council to amend the
agreement unless we know that the additional services will be required. I should point out that some
foresight should be exercised to ensure that a situation does not arise where additional services are
performed prior to approval of the correct rates. That is not something Michele would appreciate.
3. Kerr is concerned about the fact that each of his associates is a subcontractor. Therefore he
must receive written authorization to use them. The agreement should spell out how the
authorization is to be given. I suggest that it be specific to certain individuals. You should obtain
this information from Kerr.
4. Kerr is concerned about when the clock starts on the 135 days. He wants it to begin with the
scoping meeting that, coincidentally is job one in phase one. I explained that the terms begins to run
from the date of execution. Thus, you should schedule execution to coincide with the scoping
meeting.
Thanks!
OPK/wp f N:1ATY\KERR.MEMI
PP4r
THOMAS P. KERR, Inc.
Management and Consulting Services
April 21, 1998
Orry P. Korb, Town Attorney
Town of Los Gatos
POB 949
Los Gatos, CA 95031
REF: Agreement for Mobilehome Park Consulting Services
(AGR:98:023)
Dear Mr. Korb:
3807 Pasadena Ave., Suite 100
Sacramento, California 95821
Telephone: (916) 971-0489
RECEIVED
APR 2i199P
TOWN ATTIN'
Via Fax: 408-354-8431
I am writing to follow up my telephone conversation with Ryan Bane of the Town
Planning Department on Monday, April 20, and the voice mail message I left for you
with regard to the proposed agreement.
I had hoped to get a chance to talk with you before I left for Oregon on Wednesday,
April 22. I will be gone the balance of the week.
As I explained to Ryan, I thought there might be a couple of provisions in the proposed
agreement that had been carried over from another use of it with a different consultant,
and there are a couple of items that I thought we might clarify.
The requirement for $1 million in professional liability insurance (paragraph 15 A iv) was
unexpected as it was not specified in the Request for Proposal (and may be a provision
from another use). I have checked into obtaining such coverage and, because there
are no group or association programs for activities of this nature (as exists for lawyers,
doctors, and engineers), the cost is quite high on an individual basis. My insurance
broker has found a market that will write it for a premium of $8,500. That is a cost that
was not included in the budget for this project.
It has been suggested to me that I ask you to consider the liability exposure and the
need for this requirement. I'm not a lawyer providing opinions upon which the Town will
rely. Nor am I an engineer designing a bridge its citizens will drive over.
Essentially, I am writing a report for Town. The report will be subjected to considerable
scrutiny and input from many quarters, including residents, the property owner, the
public, and Town administrative staff. I am providing information which will be used by
the Town Council to form an opinion. The final decision they make will be made based
upon staff recommendations and advice of legal counsel.
I am requesting that the requirement for professional liability insurance be waived.
The provision relating to "Compensation for Additional Services" (paragraph 7.c) does
not reflect the hourly rates quoted in my Response to the RFP. The correct hourly rates
are:
Principal Consultant/Subcontractor $150.00
Associate Consultant/Subcontractor $ 75.00
Appraiser/Relocator $ 75.00
Staff Support $ 25.00
The other two provisions that Ryan and I discussed relate more to implementation of
the agreement.
It is perhaps implied and understood in my Response to the RFP that all of the people
who comprise the "team" are subcontractors and that by accepting it the Town has
consented to such assignment and subcontracting. However, to keep things tidy and
clear, I asked Ryan how we would obtain the Town's written consent as required by
paragraph 10, "Assignability and Subcontracting."
Paragraph 2 requires that the consulting services be completed within 135 days of the
"commencement date." My concern is that the clock doesn't start running before I can
in fact commence the project. I explained to him that we can't really get started on the
closure impact study until we can hold a meeting with the owners of the mobilehomes,
listen to their concerns, answer their questions, and explain who we are and how we will
go about appraising their mobilehomes, and so forth. We can't hold the meeting with
residents until after we have the Scoping Meeting. I asked that the "commencement
date" be not earlier than the date the Scoping Meeting is held.
I would appreciate your review and consideration of these matters. I will be checking
with my office on Thursday and Friday for messages if you wish to try to reach me then.
Otherwise, we can perhaps discuss this early next week.
Thank you for your assistance.
Sincerely,
t
Th mas P. Kerr, President
Mobilehome Parks Consultant
Page 2
ent by: ALLIANCE INS.
602 494 1175; 04/16/98 4:55PM; #128;Page 2/2
GALLAGHER ALLIANCE INSURANCE SERVICES, INC.
4" A DIVISION OF ARTHUR J. GALLAGHER & CO.
April lb, 1998
To: Tom Kerr
Fr: Louis Serro
CiALLAUI-LtK At. L.AA.1VL.r UN Uxrurt..t;
Re: E&O Insurance
Below is a summary of coverage:
Coverage : Professional Liability
Claims Made Form, Retroactive date set on
policy inception date, Defense within the
limit of coverage.
Limit $ 1,000,000 per claim/ Aggregate
Deductible : $ 5,000
Terms 25% minimum earned premium
Exclusions : Pollution, Asbestos, Employment Related Practices, Lead Paint Contamination,
Lead Paint Poisoning, New Entities Not Reported, Nuclear Energy, Punitive
Damages
Company : Tamarack Insurance
Premium : $8,500 annual
7600 N. 16th Street • Suite 201 • Phoenix, AZ 85020 (602) 998-7600 • Fax (602) 494-1175
04/21/98 22:27 FAX 916 071 1849
1:1
THOMAS P. KERR, Inc.
Management and Consulting Services
3807 Pasadena Ave., Suite 100
Sacramento, California 95821
Telephone: (916) 971-0489
April 21, 1998
Orry P. Korb, Town Attomey
Town of Los Gatos
POB 949
Los Gatos, CA 95031
RECEIVED
APR 2 1 1998
TO WN ATTArY
Via Fax: 408-354-8431
REF: Agreement for Mobilehome Park Consulting Services
(AGR:98:023)
Dear Mr. Korb:
I am writing to follow up my telephone conversation with Ryan Bane of the Town
Planning Department on Monday, April 20, and the voice mail message I left for you
with regard to the proposed agreement.
I had hoped to get a chance to talk with you before I left for Oregon on Wednesday,
April 22. I will be gone the balance of the week.
As I explained to Ryan, I thought there might be a couple of provisions in the proposed
agreement that had been carried over from another use of it with a different consultant.
and there are a couple of items that I thought we might clarify.
The requirement for $1 million in professional liability insurance (paragraph 15 A iv) was
unexpected as it was not specified in the Request for Proposal (and may be a provision
from another use). I have checked into obtaining such coverage and, because there
are no group or association programs for activities of this nature (as exists for lawyers,
doctors, and engineers), the cost is quite high on an individual basis. My insurance
broker has found a market that will write it for a premium of $8,500_ That is a cost that
was not included in the budget for this project.
It has been suggested to me that I ask you to consider the liability exposure and the
need for this requirement. I'm not a lawyer providing opinions upon which the Town will
rely. Nor am I an engineer designing a bridge its citizens will drive aver.
Essentially, I am writing a report for Town. The report will be subjected to considerable
scrutiny and input from many quarters, including residents, the property owner, the
public, and Town administrative staff. I am providing information which will be used by
the Town Council to form an opinion. The final decision they make will be made based
upon staff recommendations and advice of legal counsel.
04/21/98 22:27 FAX 916 °71 1849 THOS P KERR INC
02
I am requesting that the requirement for professional liability insurance be waived.
The provision relating to "Compensation for Additional Services" (paragraph 7.c) does
not reflect the hourly rates quoted in my Response to the RFP. The correct hourly rates
are:
Principal Consultant/Subcontractor $150.00
Associate Consultant/Subcontractor $ 75.00
Appraiser/Relocator $ 75.00
Staff Support $ 25.00
The other two provisions that Ryan and I discussed relate more to implementation of
the agreement.
It is perhaps implied and understood in my Response to the RFP that all of the people
who comprise the "team" are subcontractors and that by accepting it the Town has
consented to such assignment and subcontracting. However, to keep things tidy and
clear, I asked Ryan how we would obtain the Town's written consent as required by
paragraph 10, "Assignability and Subcontracting."
Paragraph 2 requires that the consulting services be completed within 135 days of the
"commencement date." My concern is that the clock doesn't start running before I can
in fact commence the project. I explained to him that we can't really get started on the
closure impact study until we can hold a meeting with the owners of the mobilehomes,
listen to their concerns, answer their questions, and explain who we are and how we will
go about appraising their mobilehomes, and so forth. Wo can't hold the meeting with
residents until after we have the Scoping Meeting. I asked that the "commencement
date" be not earlier than the date the Scoping Meeting is held_
I would appreciate your review and consideration of these matters. I will be checking
with my office on Thursday and Friday for messages if you wish to try to reach me then.
Otherwise, we can perhaps discuss this early next week.
Thank you for your assistance.
6Thmas P. Kerr, President
Mobilehome Parks Consultant
Sincerely,
Page 2
04/21/98 22:27 FAX 916 0/1 1849
ent by: ALLIANCE INS.
THOS P KERR INC 1j03
602 494 1175; 04/ 4:55PM;, #128;Page 212
GALLAGHER ALLIANCE INSURANCE SERVICES. INC.
�y --- A DIVISION OF ARTHUR J. (iALLAGHEA & Co.
April 16, 1998
To: Tom Kerr
Fr: Louis Serro
LIALLAurizx ALL ANi t..Jr, Lima u lCayL L.ft
Re: E&O Insurance
Below is a summary of coverage:
Coverage : Professional Liability
Claims Ma& Form, Retroactive date set on
policy inception date. Defense within the
limit of coverage.
Limit S 1,000,000 per claim/ Aggregate
Deductible : S 5,000
. Terms 25% minimum earned premium
Bxckai1ons : Pollution, Asbestos, Employment Related Practices, Lead Paint Contamination,
Lead Paint Poisoning, New Entities Not Reported, Nuclear Energy, Punitive
Damages
Company : Tamarack Insurance
Premium : S8.500 annual
7600 N. 161h Street • Suite 201 • Phoenix, AZ 85020 (602) 996-76D0 • Fax {602) 494-1175