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Agr Fixed Assets Inventory AUTHORIZATION "--- Please note the services you desire by placing a check mark and your initials in the space provided. The City's TOTAL fixed fee investment, including out-of- pocket expenses, is as follows: Data Disk (ASCII, Excel, or Access) $ 16,800 $ 18,600 _X- ~ $ 300 _X- ~ Base Building Appraisal - Insurance Only Base Building Appraisal - Insurance and Accounting MAXIMUS will invoice you for professional services rendered during the progress of our work. Progress invoices, up to 90 % of the total fee, will be issued as our work is performed and the balance, 10% will be invoiced with delivery of the final report. All invoices are due within 30 days of receipt. With full authority, on behalf of the CITY OF SALINA, I hereby agree to the terms and conditions set forth in this proposal. /1~ ~ ' , Name: (J 4r J11 L^a-7~ r Title: /QÞ~4..¿ , , Date: '-- OFFERED BY: MAXIMUS, Inc. Phone: (888)778-8250 /4/ ~,. Adam Beckum, District Manager 13601 Preston Road Suite 201E Dallas, TX 75240 October 28, 2002 '-- MAXIM US MAXIMUS@ HELPING GOVERNMENT SERVE THE PEOPLE'" ----- PROPOSAL FOR BUILDING V ALUA nONS FOR THE CITY OF SAUNA MAXIM US hereby proposes to provide professional valuation consulting services for the City of Salina (hereafter, the City). The purpose, scope, procedures, output, timing and fees are set forth as follows: The purpose of this turnkey service is to provide the City with a completely updated and comprehensive Building Appraisal to meet the following primary objectives : INSURANCE: Provide the City with current certified insurable values of all appraised assets for insurance placement and documentation, proper rating, proof of loss substantiation, and a system for perpetuation of the conclusions. FINANCIAL REPORTING: Prepare a property accounting system that will assist the City in fulfilling current fiscal reporting requirements for compliance with Generally Accepted Accounting Principles (GAAP) and GASB Statement 34; and provide the guidance necessary to comply with the new capital asset reporting changes as pronounced by GASB Statement 34. ----- Scope of Serv~ Property to be appraised includes all property listed on the attached report provided by the City of Salina dated October 28, 2002. All land improvements will be grouped together by like kind and given a CRN. All buildings/structures will be appraised and given both RCN and an original cost. METHODOLO Y COSTING&. VA UATION Our investigation of the property will follow generally accepted appraisal techniques and will include the use of specific techniques necessary to develop valid and acceptable original cost, date of acquisition and insurable value for each asset. We will determine original cost by using the following costing methods: . '---- 13601 PRESTON ROAD. SUITE 201E. DALlAS, TX 75240-4915.888.778.8250.972.702.6400. FAX 972.702,6420 '-- City of Salina Page 2 The Direct Costing method will be used where historical data is readily available from City records. The actual purchase cost and acquisition date will be maintained for those assets. While MAXIMUS is not proposing a detailed line-by- line reconciliation, our staff will work with records as provided by the City to tie back original cost and dates of acquisition on the more material and recent acquisitions, Standard Costing is used when inventoried property units/groups not reconciled to a historical record receive an estimated cost, where possible, based upon a standard cost (a known average installed cost for a like unit) at the estimated acquisition date. The Normal Costing method will be used where no historical information is readily available. These assets will be valued on a current basis and back- trended to an estimated date of acquisition to estimate the original cost. During the costing and valuation procedures, all items will be assigned a useful life. The useful life of an item will determine its approximate replacement year. '-' During the course of the inventory and the subsequent valuation research, our appraisers will examine all assets to determine: a) date of acquisition b) original cost, and c) cost of reproduction new, defined as follows: ORIGINAL COST is the amount originally paid to acquire the asset, including such cost as set-up charges; transportation; taxes; engineering and architectural fees; and title insurance. If an asset was donated or bought for a nominal sum, GMP requires that the asset be accounted for at market value as of the date of acquisition. COST OF REPRODUCTION NEW (CRN) is the amount required to reproduce property in like kind and materials, in accordance with current market prices for materials, labor and manufactured equipment, contractor's overhead, profit and fees, but with no provisions for overtime or bonuses for labor and premiums for materials. BUILDING STRUCTURES '-- The buildings/structures subject to our survey will be carefully inspected and measured. In-house professional appraisers will independently calculate the square footage of each building appraised either through the review of "as-built" blueprints or physically measuring each building. Segregated construction components and building features will be identified and valued. Building plans MAXIM US -- City of Salina Page 3 and photographs will be prepared for each structure to become part of our proof of loss documentation, in addition to assisting with the valuation efforts. A description of each building will be developed and recorded, showing construction type, and materials used. Building improvements (i.e., additions, renovations) will be individually recorded. The building components listed below will be individually analyzed and valued, as applicable. BASIC CONSTRUCTION Excavation Foundation Frame Height/Number of Floors Roof Covering Exterior Walls Floor Basement ---- BUILDIN ERVICES Plumbing Fire Protection Heating, Ventilation & Air Conditioning Electrical & Lighting Burglar System Elevators INTERIOR CONSTRUCTION Floor Covering Ceiling Interior Partitions & Built-in Features Stairways Covered Walkways ATTACHED EXTERIOR CONSTRUCTION Stairways Emergency Lighting Covered Walkways Handicap Ramps In addition to the analysis of individual building components, construction classes will also be recorded. ISO classes 1-6, as defined in the Commercial Fire Rating Schedule (CFRS) are defined in terms of the Marshall and Swift construction classes as follows: ISO Class ISO Descriotion M&s Class 1 Frame/Combustible D 2 Joisted Masonry C ---- 3 Noncombustible S MAXIM US ------- City of Salina Page 4 4 5 6 Masonry Noncombustible Modified Fire Resistive Fire Resistive C A B During the office valuation portion of the engagement, property exclusions (those items not typically covered by an insurance policy) will be segregated to properly report the site preparation and excavation, footings and foundations, and a portion of plumbing costs (underground). TIMING ----- MAXIM US' automated approaches and depth of experienced staff qualify us to complete all phases of this project within the desired time frame. Upon receipt of your authorization MAXIM US will arrange a mutually agreeable schedule the project planning meeting and our field investigation. Delivery of the final reports will be completed by within 60 days of project commencement, assuming we receive any required information from the City in a timely manner. It is our understanding that time is of the essence given the City's need to implement GASB 34 reporting requirements. We will work with the City to establish a mutually agreeable timetable once we have been given the notice to proceed. Deliverables The final reports will be presented in an easy-to-read format. Two copies of each report will be provided (additional copies can be provided, upon request, for a nominal charge). Detail as well as summary reports are included!n the final product. A narrative section that will certify our appraisal and document our procedures will precede your reports. Your reports will include: . Accounting Summary Report . Accounting Detail Reports . Insurance Summary Report (Risk Plus) . Insurance Detail Report with Digital Photo (Risk Plus) . One disk of the Digital Photos will be provided. ----- GENERAL INFORMATION The following conditions are considered standard practice in the performance of our appraisal services and, if applicable, are made a part of this proposal and contract. MAXIM US ---- City of Salina Page 5 All available data and records deemed necessary in the search for costs and historical background should be provided to our appraisal staff. The City should identify all equipment not owned by the City in advance of the field inventory. A list of all assets on loan or off site for repair should be furnished to the appraisal staff. MAXIM US shall provide guidance to the City in determining the data required for purposes of executing the tasks of this agreement. The City agrees to provide all data requested, including documentation and information to MAXIMUS in a timely manner. MAXIMUS shall assume without incurring liability therefore that all such data, documentation and information provided by the City is accurate and complete. In the event that the City provides additional and/or corrected data, documentation and information at a later date, MAXIM US' efforts with respect to such additional and/or corrected data, documentation and information shall be deemed additional services and compensated in addition to the fees set forth herein based on then applicable hourly professional fees and expenses. ----- We will maintain copies of the final reports, together with all field notes and working papers in our files for a period of five years from the date of the appraisal. Should the need arise, these documents will be made available to City. MAXIM US will render advisory service at no charge to the City or its auditors regarding the procedures and methods used in the appraisal process and the resulting values of the assets appraised. The attached fee schedule includes any and all expenses incurred by MAXIMUS in preparation and completion of the inventory, appraisal and reports. Our fees are guaranteed for a period of Sixty (60) days from the date of this offer, until executed. MAXIM US will invoice the City for professional services rendered during the progress of our work. Progress invoices, up to 90 % of the total fee, will be issued as our work is completed and the balance, 10%, will be invoiced with delivery of the final report. All invoices are due within 30 days of receipt. "-- We have relied upon certain property data provided by the City in developing our fee estimate. Additional scope or corrections to the listing of properties provided to MAXIMUS necessitating a significant increase in professional time, will be charged at our standard per diem rates, plus expenses, and billed in addition to the agreed upon fee. Fee quotations for inclusion of additional properties or change in scope will be provided upon request. MAXIMUS