Complex Business Relocations and Move Planners Darryl Root, J.D., MBA, R/W-RAC Paragon Partners Ltd. Robert Merryman, R/W-RAC OR Colan Associates Michael

Complex Business Relocations Complex Business Relocations and Move Plannersand Move Planners

Darryl Root, J.D., MBA, R/W-RACParagon Partners Ltd.

Robert Merryman, R/W-RACOR Colan Associates

Michael McParland, R/W-RACAuxilium Inc.

Rhonda Young, R/W-RACSpitzer & Associates

J. Hunter Manson, SR/WA, RW-RACNorthwest Relocation Consulting LLC

NRC

Presented by:

Auxilium Inc.

Move Planning and Planners

Generally accepted for large moves in private industry

Permitted in Federal Regulations

Should not be viewed as adversarial

Complex Business Relocations and Move PlannersComplex Business Relocations and Move Planners

What do the Regs Say?

“Professional services as the Agency

determines to be actual, reasonable and

necessary for: …”

49CFR 24.301 (12)


Professional…

Meaning someone who is engaged in this business as their livelihood

This cost is not a self-move item


…Agency determines…

Decision is the Agency’s, subject to appeal

Can determine Necessity, Scope, and Allowable Cost


What is Actual?

This refers to a payment for the actual

cost of the work performed. It might be

cost reimbursement or a lump-sum.


What is Reasonable?

This refers to both the Scope of Services

being provided by the planner and the

cost for those services.


What is Necessary?

This refers to need by the displaced business for the services to be provided.


What are…

Professional Services as the Agency determines to be actual, reasonable and necessary for:• Planning the move of the personal property,• Moving the personal property, and • Installing the relocated personal property at

the replacement location.


What are…

Professional services as the Agency determines to be actual, reasonable and necessary for:• Planning the move of the personal property,• Moving the personal property, and • Installing the relocated personal property at

the replacement location.


What are…

Professional services as the Agency determines to be actual, reasonable and necessary for:• Planning the move of the personal

property;• Moving the personal property; and • Installing the relocated personal property

at the replacement location.


How do We Control the Cost of the Services?

You must review Scope of Services

You must review the total cost and cost breakdown

You must positively control change orders


Two Examples

An Aircraft Tire Manufacturer• Partial payment for costs• Complete control of move

A Frozen Food Warehouse• Special consultant for safety• Assisted with inventory control prior to

move


Best Practices For Determining the Need, Scope and Duties of

Move Planners Applies to Our Table, Inc. and the City

What does Our Table, Inc. need to do

• Determine the scope of work for a move planner

o To prepare specifications for the relocation or substitution of the personnel property.



Move Planners Advise on issues pertaining to the

transition to a new facility• How do you continue to prepare and deliver

1,000 meals a day while transitioning from the current facility to a new facility?

• How do you plan in advance to continue serving your 1,000 clients on a daily basis?



Move Planners• How long will the move take?

• How much down time will you have to plan for with both kitchens?

• Health Department concerns

• Union Concerns



Move Planners Prepare a Project Schedule that addresses:

• How long will it take to fit out the new facility?

• How long will the actual move take?

• How long will the kitchens be down?



Move Planners Prepare a Move Plan that addresses:

• How do you serve clients during the transition?

• What existing kitchen equipment needs to move to the new facility?

• What kitchen equipment will be replaced at the new facility?


Selection of the Move Planner

How will Our Table, Inc. select a move planner?• Thorough Discussion of Scope with Planner• Review Planners’ Experience and familiarity

with restaurant/kitchen moves • Review reasonableness of Planner’s

rates/prices • Does Planner know that payment is

conditional upon payment from City?



What does the City need to do and decide on?• Adherence to written policy

o If no current written policy, City should provide Our Table, Inc. with written guidelines

• Content of policy on use of move planners o Criteria for necessity for move planners

Complexity of move

Reasonableness



• Basis for Payment of Move Planners o Lower of Two Scope of Work Estimates o Other factors

Only work performed in relation to relocating the personal property will be eligible for reimbursement.

Amounts paid will be based upon the complexities and nature of the business and will be reimbursed on the basis of product prepared and level of effort as determined by the City.



Will the City allow Our Table, Inc. to perform its own professional move services? If so, what are the requirements?• Business qualifications to plan the move• Reasons for wanting to complete the work instead of

hiring an outside professional • Hourly rate• Scope of Work • Must provide at least two Scope of Work Proposals

with not to exceed costs from reputable move planning firms

• Reimbursable costs must not exceed the lower of the two Scope of Work Proposals



What advisory services should the City give Our Table, Inc. before it hires move planners?• Caution displacee not to rush into contracts with move

planners• Obtain at least two Scope of Work Proposals from

reputable move planners with not to exceed costs• Allow the City to thoroughly review the proposals to

point out what is and what is not eligible prior to hiring move planners



• Advise as to generally allowable move planning services:

• Preparation of floor plan layout/configuration and flow of business operation as it relates to the personal property at the displacement and/or replacement site.

• Planning of which personal property items will be moved, replaced, abandoned, discarded, or not moved.

• Research code requirements for installation of personal property currently grand-fathered at the displacement site that may require code modifications at the replacement site.



• Providing of professional services prior to the purchase or lease of a replacement site to determine its suitability for the displaced person’s business operation includes but is not limited to, soil testing, feasibility and marketing studies (excluding any fees or commissions directly related to the purchase or lease of the site).



• Advise as to Items not generally eligible: o Work with business owner to create the Request

for Proposal/Moving Specifications to secure move bids to move all personal property to the replacement site.

o Securing move bids including 3rd party bids.

o Excessive coordination of movers.

o Excessive monitoring all aspects of the move.



• Advise as to Items not generally eligible: o Post move inventory.

o Obtaining inventory from business owner of all items needing to be reprinted that are considered obsolete prior to the actual date of the move.

o Review and approval of all claims for relocation as it relates to the personal property.

o Processing of all claims for payment.



• Advise that Our Table, Inc. is responsible for:o Working with City relocation specialist to prepare

necessary inventory, identify all vendor owned equipment, and identify those items to be abandoned or replaced.

o Notifying with City relocation specialist when the replacement site has been located.

o Notifying City relocation specialist of anticipated move date.

o Preparing a sample file of all documents that must be reprinted due to change of address and/or phone number.



• Advise that Our Table, Inc. is responsible for:o Providing valuation of personal property to City

relocation specialist for the purpose of obtaining replacement value insurance prior to the preparation of the Request for Proposal.

o Obtaining pre-approvals from City relocation specialist before committing to financial obligations for the purpose of determining eligibility for reimbursement of claims.

o Keeping City informed as it relates to applicable aspects of its relocation.


Practical Application

Actual, Reasonable and Necessary Value and Benefit Respective Roles and Responsibilities Agency Pre-Approval Scope of Work Schedule of Charges/Terms and

Conditions Selection Process


Practical Application

Owner Participation In-House Expertise Contractual Obligation/Liability Agency Monitoring Invoicing Details FHWA Guidance Individual Agency Policies


Potential Owner Benefits

Remain Focused on Running the Business Remain Focused on Replacement Site

Search Increase/Enhance Replacement Site

Options Dedication to Owner’s Best Interest Minimize Down Time and Loss of Revenue Reimbursement Success and Survival


Potential Agency Benefits

Point of Contact on Personal Property Issues

Apprehensive Owners May Feel “Represented”

Fees May be Federally Reimbursed Agency Administration Time May Be

Reduced Project Scheduling Needs are Met Appeals May Be Reduced Success and Survival


Potential Agency Concerns

Control of Cost and Scope

Advocating on Claims and Eligibility Issues

Involvement on Issues other than PP

Duplication of Effort, Work and Cost


Different Strokes forDifferent Folks!

Businesses Who Want Planning but Do Not Need It!

Businesses Who Need Planning but Do Not Want It!

Business Who Need Planning and Want Planning!


Organized and Structured










Clutter and Chaos


Clutter and Chaos


Clutter and Chaos


Clutter and Chaos


Clutter and Chaos


THE PLAN!


Documents

Complex Business Relocations and Move Planners Darryl Root, J.D., MBA, R/W-RAC Paragon Partners Ltd. Robert Merryman, R/W-RAC OR Colan Associates Michael