HomeMy WebLinkAbout5/16/2007 - STAFF REPORTS - 2.M. �o4VPLM4'
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c4`'k°eN�P CITY COUNCIL STAFF REPORT
DATE: May 16, 2007 Consent Calendar
SUBJECT: Approve Consultant Services Agreement with American Appraisal Associates in
an amount not-to-exceed $37,500 for fixed asset inventory services
FROM: David H. Ready, City Manager
BY: Director of Finance and Treasury
SUMMARY
The City has a variety of fixed and movable capital assets. The Government Accounting
Standards Board (GASB), which sets reporting standards for public agencies, ,requires that
these assets be booked as park of the City's annual financial statement. Although the City
maintains a detailed listing of these capital assets, a physical inventory has not been performed
in over ten (10) years. The City's Auditor has strongly recommended that the City conduct a
physical inventory of these assets in order to validate our list and to maintain proper internal
controls. In response to this recommendation, the City has issued a Request for Proposal to
qualified firms that specialize in fixed asset inventory services. This action would approve a
Consultant Services Agreement with American Appraisal Associates in an amount not-to-
exceed $37,500 to perform a fixed asset inventory of all capital assets.
RECOMMENDATION:
1. Adopt Minute Order No. approving a Consultant Services Agreement with
American Appraisal Associates for fixed asset inventory services in an amount not-to-
exceed $37,500.
2. Authorize the City Manager to execute the necessary documents.
STAFF ANALYSIS
The City of Palm Springs owns a variety of fixed and movable capital assets, which differ
significantly in value, size, and use. Currently, only those capital assets that have a value equal
to or greater than the capitalization threshold of $5,000 are booked. These assets include:
land, land improvements, buildings, building improvements, machinery and equipment, vehicles,
infrastructure, leasehold improvements, and works of art. The City has approximately 1,950
booked assets that meet or exceed the capitalization threshold.
Item 2 . M .
City Council Staff Report
May 16, 2007-- Page 2
Consultant Services Agreement with American Appraisal Associates
The Government Accounting Standards Board (GASB) issues accounting and financial reporting
rules for state and local governments throughout the United States. GASB Statement 34,
issued June 1999, requires that capital assets be reported in the City's annual financial
statement net of depreciation. While the City currently reports all capitalized assets as part of its
annual financial statement, a physical inventory of those assets has not been performed in over
ten (10) years.
The City's auditor has recommended, as part of their annual management letter, that the City
perform a routine (every 3 to 4 years) physical inventory of all fixed assets to ensure that these
assets are properly being recorded in the City's accounting records. In addition to ensuring that
all additions and deletions have been properly recorded, and that the City has properly reflected
total fixed assets in the City's accounting records, a fixed asset inventory is essential to
maintaining strong internal controls.
As part of the current fiscal year budget, the City Council appropriated $35,000 for a fixed asset
inventory. In February, the City's Procurement and Contracting Division issued a Request for
Proposals (RFP 09-07) to qualified firms to conduct a formal physical inventory of the City's
fixed assets as well as three (3) optional tasks, which included determining replacement costs
for insurable assets, provide GPS location data for all outdoor assets, and recommendations for
future inventory update processes. The RFP was sent to eleven (11) potential vendors and
posted on the City's website. Proposals were received from the following six (6) firms:
Accountable Assets, RCI Technologies, Worldwide Industries, Hiron & Associates, Maximus
and American Appraisal Associates.
An evaluation committee consisting of members of the Finance Department, as well as the
Assistant City Manager of Administrative Services, evaluated all six (6) of the proposals
received against the following criteria:
• background/experience/staff qualifications;
• work plan/staffing plan;
• timeline;
• references; and
• cost.
Of the six proposals that were evaluated, American Appraisal Associates was ranked highest.
The Procurement Division was able to negotiate a reduction in the initial cost proposed by the
firm from $44,500 to $37,500. The committee is now recommending award to American
Appraisal Associates, the highest ranked offeror, in amount not-to-exceed $37,500 for the fixed
asset inventory services, as well as Optional Task 1 for determining the replacement cost of all
insurable assets.
American Appraisal is the world's oldest and largest independent appraisal firm, with more than
a century of experience as the industry leader in valuation services. American Appraisal
Associates is proposing to conduct a physical inventory of all fixed assets and update the City's
current inventory list. They will note all discrepancies and deliver both a paper and electronic
report of all fixed. assets. American Appraisal Associates will also provide a valuation report of
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City Council Staff Report
May 16, 2007-- Page 3
Consultant Services Agreement with American Appraisal Associates
the replacement cost of all assets. This will assist staff in determining the levels of insurance
the City may need. It is anticipated that the inventory will take ninety (90) days to complete.
FISCAL IMPACT:
This is a budgeted expense. Funding is available in the Finance Department Contractual
Services Account (001-1300-43200).
Craig ves Tr L. Butzl
Dire r of Finance A si tant Cit Mager
David H. Ready
City Manager
Attachments:
1. Minute Order
MINUTE ORDER NO.
APPROVING A CONSULTANT SERVICES
AGREEMENT WITH AMERICAN APPRAISAL
ASSOCIATES FOR FIXED ASSET INVENTORY
SERVICES IN AN AMOUNT NOT-TO-EXCEED
$37,500.
I HEREBY CERTIFY that this Minute Order, approving a Consultant Services
Agreement with American Appraisal Associates for fixed asset inventory services in an
amount not-to-exceed $37,500 was adopted by the City Council of the City of Palm
Springs, California, in a meeting thereof held on the 161h day of May 2007.
JAMES THOMPSON
City Clerk
CONSULTING SERVICES AGREEMENT
American Appraisal Associates Inc., for Fixed Asset Inventory Services
THIS AGREEMENT FOR CONSULTING SERVICES (the "A.greemenf) is made and
entered into this I day of May, 2007, by and between the City of Palm Springs, a California
charter city and municipal corporation ("City"), and American Appraisal Associates Inc.,
("Consultant").
RECITALS
A. City requires the services of a consultant firm to conduct a fixed asset inventory
per the requirements and specifications in Request for Proposals 09-07 ("Project"),
B. Consultant has submitted to City a proposal to provide fixed asset inventory
services to City pursuant to the temps of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant is
qualified to provide the necessary services to City for the Project and desires to provide such
services.
D. City desires to retain the services of Consultant for the Project.
NOW, THEREFORE, in consideration of the promises and mutual agreements contained
herein, City agrees to retain and does hereby retain Consultant and Consultant agrees to provide
services to the City as follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Consultant shall provide fixed asset inventory services to City as described in the
Scope of Services/Work attached to this Agreement as Exhibit "A" as well as Optional Service
#1 of determining the Replacement Cost of all Insurable Assets, and incorporated herein by
reference (the "services" or "work"), which includes the agreed upon schedule of performance
and the schedule of fees. Consultant warrants that all services and work shall be performed in a
competent, professional, and satisfactory manner in accordance with all standards prevalent in
the industry. In the event of any inconsistency between the terms contained in the Scope of
Services/Work and the terms set forth in the main body of this Agreement, the terms set forth in
the main body of this Agreement shall govern.
1.2 Compliance with Law_ All services rendered under this Agreement shall be
provided by Consultant in accordance with all applicable federal, state, and local laws, statutes
and ordinances and all lawful orders, rules, and regulations promulgated thereunder.
1.3 Licenses and Permits. Consultant shall obtain at its sole cost and expense such
licenses, permits, and approvals as may be. required by law for the performance of the services
required by this Agreement.
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507639.2 t g � ��
1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that
it has carefully considered how the work should be performed and fully understands the
facilities, difficulties, and restrictions attending performance of the work under this Agreement.
2. TIME FOR COMPLETION.
The time for completion of the services to be performed by Consultant is an essential
condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this
Agreement according to the agreed upon schedule of performance set forth in Exhibit "A."
Consultant shall not be accountable for delays in the progress of its work caused by any
condition beyond its control and without the fault or negligence of Consultant. Delays shall not
entitle Consultant to any additional compensation regardless of the party responsible for the
delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. For the services rendered pursuant to this
Agreement, Consultant shall be compensated and reimbursed, in accordance with the schedule of
fees set forth in Exhibit "A," Cost Schedule (A) for Fixed Asset Inventory Services in the
amount of$32,500 and Cost Schedule (B) for Optional Service of determining Replacement Cost
for all Insurable Assets in the amount of$5,000, which total amount for all services shall not
exceed $37,500.
3.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall no later than the first working day of such month, submit to City in the
form approved by City's finance director, an invoice for services rendered prior to the date of the
invoice. Payments shall be based on the hourly rates as set forth in Exhibit "A" for authorized
services performed. City shall pay Consultant for all expenses stated thereon, which are
approved by City consistent with this Agreement, within thirty (30) days of receipt of
Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of Services/Work is
requested by City, the parties hereto shall execute a written amendment to this Agreement,
setting forth with particularity all terms of such amendment, including, but not limited to, any
additional fees. An amendment may be entered into:
A. To provide for revisions or modifications to documents or other work
product or work when documents or other work product or work is required by the enactment or
revision of law subsequent to the preparation of any documents, other work product, or work;
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Consultant's profession.
3.4 Appropriations. This Agreement is subject to and contingent upon funds being
appropriated therefore by the City Council of City for each fiscal year covered by the
Agreement. If such appropriations are not made, this Agreement shall automatically terminate
without penalty to City. Consultant shall be compensated for all services rendered prior to
receipt of the notice of termination. i 001r j
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4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
4.2 Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed pursuant to the agreed upon schedule of performance set forth in Exhibit "A."
The extension of any time period must be approved in writing by the Contract Officer.
4.3 Force Ma"c1 ure. The time for pelfonnance of services to be rendered pursuant to
this Agreement may be extended because of any delays due to unforeseeable causes beyond the
control and without the fault or negligence of Consultant, including, but not limited to, acts of
God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic,
quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather if
Consultant shall within ten(10) days of the commencement of such condition notify the Contract
Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend
the time for performing the services for the period of the enforced delay when and if in the
Contract Officer's judgment such delay is justified, and the Contract Officer's determination
shall be final and conclusive upon the parties to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 9.5 of this
Agreement, this Agreement shall continue in full force and effect for a period of six months,
from the date of execution,unless extended by mutual written agreement of the parties_
5. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is hereby
designated as being the principal and representative of Consultant authorized to act in its behalf
with respect to the services and work specified herein and make all decisions in connection
therewith: Juan Iverson, Assistant Vice President. It is expressly understood that the experience,
knowledge, education, capability, and reputation of the foregoing principal is a substantial
inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be
responsible during the tern of this Agreement for directing all activities of Consultant and
devoting sufficient time to personally supervise the services hereunder. The foregoing principal
may not be changed by Consultant without prior written approval of the Contract Officer.
5.2 Contract Officer_ The Contract Officer shall be the City Manager, or his/her
designee. It shall be the Consultant's responsibility to keep the Contract Officer, or his/her
designee, fully informed of the progress of the performance of the services and Consultant shall
refer any decisions that must be made by City to the Contract Officer. Unless otherwise
specified herein, any approval of City required hereunder shall mean the approval of the Contract
Officer.
5.3 Prohibition Against Subcontracting or AssiEnment. The experience,
knowledge, education, capability, and reputation of Consultant, its principals and employees,
were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall
not contract with any other individual or entity to perform in whole or in part the services
required hereunder without the express written approval of City. In addition, neither this
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507639.2
Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of
law, without the prior written approval of City.
5.4 Independent Contractor. Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Consultant, its agents or employees, perform
the services required herein, except as otherwise set forth herein- Consultant shall perfonm all
services required herein as an independent contractor of City and shall not be an employee of
City and shall remain at all times as to City a wholly independent contractor with only such
obligations as are consistent with that role; however, City shall have the right to review
Consultant's work product, result, and advice. Consultant shall not at any time or in any manner
represent that it or any of its agents or employees are agents or employees of City.
5.5 Personnel. Consultant agrees to assign the following individuals to perform the
services set forth herein. Consultant shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the
City shall have the unrestricted right to order the removal of any personnel assigned by
Consultant by providing written notice to Consultant.
Name: Title:
Paul Hartnett Senior Vice President
Brian Roe Vice President
Juan Iverson Assistant Vice President
Earl Criddle Manager
Quang Tran Project Participant
Paul Gruenwald Project Participant
Bharat Kanodia Project Participant
6. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of insurance
as set;forth in Exhibit "B," which is attached hereto and is incorporated herein by reference.
7. INAEMNIFICATION-
To the fullest extent permitted by law, Consultant shall defend (at Consultant's sole cost
and expense), indemnify, protect, and hold harmless City, its elected officials, officers,
employees, agents, and volunteers (collectively the "Indemnified Parties"), from and against any
and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards,
settlements, damages, demands, orders, penalties, and expenses including legal costs and
attorney fees (collectively "Claims"), including but not limited to Claims arising from injuries to
or death of persons (Consultant's employees included), for damage to property, including
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507639.2
property owned by City, arising from the negligent or intentional misconduct of Consultant, its
officers, employees, representatives, and agents, which Claims arise out of or are related to
Consultant's performance under this Agreement, but excluding such Claims arising from the
negligence or willful misconduct of the City, its elected officials, officers, employees, agents,
and volunteers. Under no circumstances shall the insurance requirements and limits set forth in
this Agreement be construed to limit Consultant's indemnification obligation or other liability
hereunder.
8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer
such reports concerning the performance of the services required by this Agreement as die
Contract Officer shall require.
8.2 Records. Consultant shall keep such books and records as shall be necessary to
properly perform the services required by this Agreement and enable the Contract Officer to
evaluate the performance of such services. The Contract Officer shall have full and free access
to such books and records at all reasonable times, including the right to inspect, copy, audit, and
make records and transcripts from such records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of flus Agreement
shall be the property of City and shall be delivered to City upon request of the Contract Officer
or upon the termination of this Agreement, and Consultant shall have no claim for further
employment or additional compensation as a result of the exercise by City of its full rights or
ownership of the documents and materials hereunder. Consultant may retain copies of such
documents for its own use. Consultant shall have an unrestricted right to use the concepts
embodied therein.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract
Officer.
8.5 Cost Records. Consultant shall maintain all books, documents, papers, employee
time sheets, accounting records, and other evidence pertaining to costs incurred while performing
under this Agreement and shall make such materials available at its offices at all reasonable
times during the term of this Agreement and for three (3) years from the date of final payment
for inspection by City and copies thereof shall be promptly furnished to City upon request.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of
California, or any oilier appropriate court in such county, and Consultant covenants and agrees to
submit to the personal jurisdiction of such court in the event of such action.
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9.2 Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of City shall be deemed to waive or render unnecessary City's consent to
or approval of any subsequent act of Consultant. Any waiver by either party of any default must
be in writing and shall not be a waiver of any other default concerning the same or any other
provision of this Agreement.
9.3 Rights and_Remedies are Cumulative_ Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the
parties are cumulative and the exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default by the other party.
9.4 Legal Action. In addition to any other rights or remedies, either party may take
legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for
any default, to compel specific performance of this Agreement, to obtain injunctive relief, a
declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
9.5 Termination Prior to Expiration of Term. City reserves the right to terminate
this Agreement at any time, with or without cause, upon thirty (30) days written notice to
Consultant, except that where termination is due to the fault of Consultant and constitutes an
immediate danger to health, safety, and general welfare, the period of notice shall be such shorter
time as may be determined by the City. Upon receipt of the notice of termination, Consultant
shall immediately cease all services hereunder except such as may be specifically approved by
the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior
to receipt of the notice of termination and for any services authorized by the Contract Officer
thereafter. Consultant may terminate this Agreement, with or without cause, upon thirty (30)
days written notice to City.
10. CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee of City
shall be personally liable to the Consultant, or any successor-in-interest, in the event of any
default or breach by City or for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terms of this Agreement.
10.2 Covenant Against Discrimination. Consultant covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in connection with this Agreement
regarding any person or group of persons on account of race, color, creed, religion, sex, marital
status, disability, sexual orientation, national origin, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or communication either
party desires or is required to give to the other party or any other person shall be in writing and
either served personally or sent by pre-paid, first-class mail to the address set forth below. Either
party may change its address by notifying the other party of the change of address intAig
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507G39.2
Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed
as provided in this Section_
To City: City of Palm Springs
Attention: City Manager& City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: American Appraisal Associates
Attention.-Juan Iverson, Asst. Vice President
11835 Olympic Boulevard, Suite 1050
Los Angeles, CA 90064
11.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and cannot be amended or modified except by written agreement.
11.3 Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing.
11.4 Severabilitv. In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by
valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability
shall not affect any of the remaining pbraseS, sentences, clauses, paragraphs, or sections of this
Agreement, which shall be interpreted to carry out the intent of the parties hereunder_
11.5 Authority. The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said parties and that
by so executing this Agreement the parties hereto are formally bound to the provisions of this
Agreement.
[SIGNATURE PAGE SEPARATELY ATTACHED]
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5076392
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
stated below_
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
Not-To-Exceed S Intialed:
APPROVED AS TO FORM: ATTEST
By: By:
Douglas C. Holland, lames Thompson,
City Attorney City Clerk
"CONSULTANT"'
American Appraisal .Associates, Inc.
Date: By :
(name)
(president)
Date:
(name)
(secretary)
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507639.2
EXHIBIT "A"
CONSULTANT'S
SCOPE OF SERVICESAVORK
Including,
Schedule of Fees
And
Schedule of Performance
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LJ American Appraisal Associafee
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Proposal to Provide
GASB 34 Appraisal Services for
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u CAPITAL ASSET INVENTORY AND VALUATION SERVICES
FOR GASB 34 IMPLEMENTATION
J April 18, 2007
submitted by:
Juan Iverson
Assistant Vice President
American Appraisal Associates
11835 Olympic Boulevard, Suite 1050
ll Los Angeles, CA 90064
_I Phone: (310) 312-8050
Fax (310) 312-8058
.Email address: iiverson@ameiican-at)f)raisal.com
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United States Intemational
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Charlotte Ncw Odeans �- Canada Japan
Chic gP New York China Portugal
Cindnnab Philadelphia Cacti Republic R=¢
Dallas Pawipurgh American Appraisal Associates France span
Detroit Peinec(on Gcm rw Thadand
Houston San Francs' 11835 WW Olympic 9oulevatd Gre ❑n#ed Kngdom
Irvine stardom Suite 1050E Hungary
L.5lo Washrngmn D.C.Loy Angales 9 Los Angeles,Califomia 90064
Telephone(310)312.8050
Fax(810)312-8058
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American Appraisal's 11P fear
L_ April 18, 2007 xEvzSED
Mr. Craig T_ Gladders, C.P.M.
Procurement and Contracting Manager
Fixed Asset Inventory Proposal
[ City of Palm Springs
3200 E. Tahgnitz Canyon Way
Palm Springs, CA 92262
Dear Mr. Gladders:
American Appraisal Associates, Inc. ("American Appraisal") is pleased to provide this technical
u proposal for professional valuation consulting services. The purpose of our work will be to develop
a comprehensive report covering the capital assets of the City of Palm Springs (the "City" or the
LI "Client") to assist you in meeting the reporting requirements of the Governmental. Accounting
Standards Board's (GASB) Statement No. 34.
In developing our recommendarions, we have given consideration to the data provided in the City's
LJ gpp, and our past experience and expertise in addressing the needs of numerous government
r, entities such as the City.
UJ American Appraisal, founded in 1896,is the world's largest valuation consulting fain with one of the
Cl largest dedicated full,-tune professional staff dedicated to serving the Public Services community
within the valuation industry. Valuation consulting is our only business. Neither American
Appraisal, nor any of its subsidiaries, performs accounting or bookkeeping related services.
It is our commitment to maintain total independence and protect our clients from any
concerns of a "conflict of interest" with their auditors.
1
The implementation of GASB 34 presents many challenges to governmental entities as financial
CI statements are reconfiguted to meet the new reporting requirements of GASB 34. American
Appraisal has successfully developed and implemented capital asset reporting programs including .
the identification of assets, development of historical cost data, lifing of assets and depreciation
Ccalculations.
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In support of our commitment to the public sector we have committed significant staff resources in-
house to service out clients, in the establishment of industry-wide standards, and in educational
forums including presentations, publications, and continuing education seminars. Highlights of our
1 involvement in the development of standards include the following:
Senior members of American .Appzaisal's staff have spoken with numerous groups to discuss the
impact of the development of accurate property management procedures.
American Appraisal has worked in parwetship with accounting firms, engineering firms, and
1 governmental entities to develop and implement industry-wide standards for the proper recognition
of fixed assets.
CONCLUSION
I
The attached Proposal details out methodology to meet your specific requirements. If you have any
f additional questions or concerns, please do not hesitate to contact me at (310) 312-8050 or via e-
Lmail at jiverson@ametican-appraises-com_ After reviewing our proposal we would welcome the
opportunity to meet with you to discuss questions or additional needs you may have. We look
forward to working with you soon.
Respectfully submitted,
L1 C)-- _ _
f Juan Iverson
LAssistant Vice President
Attachment's
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TABLE OF CONTENTS
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Transmittal Letter
HISTORYAND BACKGROUND.................................................................................................................... ....1
EXPERIENCE...........................................................................•-----------•-•-•--•----••------...................................... ...1
1. RESOURCES OFAMERICAN APPRAISAL............--------•-----------------------------------•---------•-•-•--............................ ....2
PROJECTPLANNING................................----------------------------------------------------------------------------------------------------- ---2
TECHNICAL APPROACH...............................------------------------------------------------------- ............................3
Ll ENGAGEMENT METHODOLOGY.................................................................... .........4
BUILDING IMPROVEMENTS .....-------------------------------------------------------------------------4
r I MOVEABLE EQUIPMENT...................................................................................4
DATA ELEMENTS/DEFINITIONS-..... ........................................................................... .......... .A-5
COSTMETHODOLOGY......................................................................................................................------------5-6
i
DELIVERABLES..................................................•-•-----------------------------------------------------------...............................6-7
LJENGAGEMENT ......•---------------------------- ------------------------7-8
PROJECTED TIMETABLE....................................................................................... 8
I� OPTIONAL SERVICES..................................................................................... .....0
FEE TERMS AND CONDITIONS ..............................................•.•..........................10-11
-� GENERAL SERVICE CONDITIONS------------------------------------------------------------------------------------------------------------
L- Exhibits
LJ A References
B Professional Qualifications
C Sample Reports
rD Quality Assurance
IJ E RFP Forms
F Exceptions to RFP
l G Property List
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SECTION A.
ORGANIZATION
HISTORY/ BACKGROUND
We founded the appraisal profession in the United States in 1896. American Appraisal was formed
to provide independent property valuations for use in adjustments and settlements between
insurance companies and property owners. We are the oldest and largest independent valuation-
consulting firm in the world- A closely held, employee owned corporation, we currently have
approximately 882 full-time employees located in 17 countries throughout the world.
Headquartered in Milwaukee, Wisconsin, American Appraisal's 25 U.S. locations serve clients from
multinational corporations to local school districts_ We provide a wide range of professional
valuation, appraisal and consulting services to corporate, governmental and institutional clients on a
{ worldwide basis. Furthermore, American Appraisal has the largest dedicated full-time professional
f staff committed to serving the public sector.
American Appraisal is uniquely organi2ed as a multi-disciplined firm with separate practice groups
focusing on appraisal, and valuation consulting services_ Our Property Appraisal Services Group
(PASG), with a staff of 105, specializes in performing insurance appraisals and capital asset
inventory, reconciliation, and appraisal consulting services for government and not-for-profit clients
1 including public entity risk pools. Many of these consultants ate members of the American Society
of Appraisers and several have a degree in engineering or architecture.
American Appraisal is an equal opportunity employer and does not discritninate in employment of
persons based on race, creed,national origin, sex, age, or physical handicap.
E'XPLRIENCE
Since 2000,American Appraisal has assisted over 830 public sector entities in complying with GASB
34_ In addition, we annually process over 170 of the entities on an outsourcing basis where the
entity decides to have American Appraisal update the capital assets file for them and provide GASB
compliant reports back to them.
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Our GASB sctvices include providing inventory and costing for Land, Land Improvements,
fBuildings and Improvements, Machinery and Equipment, Furniture and Fixtures, and Infrastructure.
L All governments now need to report infrastructure assets with either consideration of depreciation
or data regarding asset condition. Tlns means that the governments need to report in a complete,
accurate and detailed manner to adequately account for and report their infrastructure activity_
GASB allows that if determining historical cost is not practical due to inadequate records, repotting
sbould be based on estimates of original cost at the date of construction or purchase. Governments
must first report all prospective infrastructure at the effective dates of Statement 34. Retroactive
reporting of infrastructure assets is required four years after tine effective dates for all Phase I and Il
gone mments. This includes all major infrastxuctw:e assets that were acquired, reconstructed, or
r significantly improved in fiscal years ending after June 30, 1980 (encouraged by GASB to go back
fuvthet). However, governments are also encouraged to report all infrastructure assets at the initial
implementation date to avoid possible deficit in net assets.
Ciry of Palm Springs 1 April 18,2007
4710-07-018
We have worked on GASB 34 projects for the States of 1-lawaii and New Fork as well as small to
medium cities and counties. In California some of our clients have been the City of San Diego, City
of Salinas, County of Monterey, City of Maywood, City of San Rafael, County of Inyo, City of San
Gabriel.
.RESOURCES OF AMERICAN APPRAISAL
American Appraisal has the staff and resources to satisfactorily complete the GASB 34 project for
the City of Palm Springs. From a total of over 400 employees in the United States we have 105
employees dedicated to our Property Appraisal Services Group that is responsible for performing
appraisals for the Public Sector and non-profit organizations_ Members from our Los Angeles
based staff will be responsible for the execution and management of this engagement.
SECTION B.
PURPOSE
It is American Appraisal's understanding that the City of Palm Springs requires the assistance of a
professional valuation-consulting firm for the development of detailed property records to support
IL JI its adoption of the capital asset reporting requirements of Goverr=cnt Accounting Standards Board
(GASB) Statement No. 34 (GAS$ 34), The valuation will be as of June 30, 2007.
[ American Appraisal will develop a detailed capital asset record to assist the City's need to: (a) achieve
property accountability and stewardship of assets, (b) obtain a valuation of assets in compliance with
the requirements of GAAP, GASB 34, and GAAFR, and (c) provide data to assist you in monitoring
f assets.
LPROJECT PLANNING
I
A meeting will be held with City's management personnel to establish parameters for the appraisal
such as con&mation of capitalization thresholds, accoruiting depreciation (method, half year
ILI convention,lifing, etc), depattment/cost center control, codtng structure (site, building, account,
classification, department), confirm work schedule,identify sensitive areas where we will need to be
escorted and sources for cost records. We recommend the City's external auditor also participate in
this meeting. After the meeting a written project plan will submitted to the City for approval. After
approval the field inspection vvU be scheduled.
CI CITY'S RESPONSIBILITIES:
Identify a representative of the City to serve as the primary on-site contact and liaison between the
LCity and American Appraisal:
- + Notify department managers of the appraisal through memo or email and provide American
Appraisal with a copy so it can be presented to City staff when requested
• Provide a list of Department contacts including name. title, and telephone number
• Provide complete and open access to all designated ateas including security escorts for
security-sensitive areas.
• Provide a work area where there is a telephone and an electric connection for a laptop
computer
City o£Palm Springs 2 April 18,2007
4710-07-018
AMERICAN APPRA.ISAL'S RESPONSIBILITIES
Develop project work plan for approval by the City and external auditors prior to commencement
of our field investigations:
• Conduct a valuation of the included assets
• Assign an historical cost to all included assets
• Assign,an accounting life and calculate depreciation on all capitalized assets
• Prepare preliminary and final reports
• Provide periodic status reports as to out progress, or challenges, incensed throughout the
study from start to delivery
TEC14MCAL APPROACH
The capital assets to be included in this engagement are located in various City-owned facility sites
and structures. The facilities include Capital Asscts, which comprise typical municipal occupancies
ll (administration, education,police, fire,maintenance,parks, etc.)
Ll Asset accounts included in the capital asset study are as Follows:
j • Moveable Equipment(includirrgLicensed Vehicles)
fL • Bui1Wgg1mprovcments
Excluded from the services provided by this proposal are:
LJ • Land
• .Land Improvements
f + Buildings
L-, • Inhastmcture
• Assets below die cap&a&zadoxr threshold in each account
�� • Leased equipment—Operating Leascs
• Personalproperty of employees or others
• Supplies/E;upendable inventories
L� When equipment is not easily accessible, we will consult with you to gather the information, or the
assistance,needed to perform American Appraisal's inventory-
C� If desired, computer software, fine arts and historical treasures, ("Special Asscts') can also be
incorporated into the record, based on information supplied by the City. This information must be
provided to American Appraisal during the initial field inspection to be included in the reports- We
will not inspect, tag or value any of the Special Assets identified by tlae City.
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City of palm Springs 3 April 18,2007
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ENGAGEMENT METHODOLOGY
Building Improvements
The city has requested to have building improvements included in time scope of this engagement. We
will be able to include building improvements if the data provided by the City includes description
of project, acquisition date or completion date, location and cost information. We will review the
1 information and include in the capital asset report with the appropriate life and depredation
calculations.
JMoveable Equipment
A detailed inventory of moveable equipment will include a physical inspection of all owned
equipment with a unit cost in excess of the $ 5,000 capitalization policy_ Licensed vehicles will be
included based on information provided by the City's Fleet Operations Department. Floor plans will
be required to assist the inventory team in assuring that no areas are missed.
It is our understanding that we will be provided with the City's most recent Fixed Asset Ledger in
electronic format, which will identify the assets to be inventoried. As part of our deliverable we will
Ul provide the city with an unrecorded retirements zeport, these are the assets that we were not able to
locate from the City's fixed asset ledger- This report will contain asset number, cost, and
accumulated depreciation assuming the necessary data is included in the City's fixed asset ledger- In
IL addition, we will also provide an unrecorded additions report, this report will include; any new assets
that were identified during the inventory process- The specific data elements that will be collected
for the new assets are described below-
It is important to note that we will not be performing a detailed reconciliation to the City's existing
:fixed asset ledger. To the extent that we match an asset tag number,we will maintain the integrity of
ILLJj the historical cost and acquisition date information for those assets.
Specific Data Elements/Defztdtions
r ' In preparing the comprehensive fixed asset record of the City's assets, we will provide the following
IL items of data on each asset; as appropriate. The specific data elements to be captured are:
I- Asset Location - A system to identify the physical location of the appraised
property (site, floor, toom, etc.).
2. Building Identification - Where used, existing numerical identifications will
remain; unidentified space will be numbered sequentially following the last assigned
number-
3. Department Number - l;xisting numbers will be utilized. When not available,
American Appraisal will identify those particular areas. Generally, only one unit
1 number will be applied to a particular space. The latgesr department representation
will be utilized.
1 4. Asset Number-A sequentially assigned asset number placed on controlled property
by the Fixed Asset System- This can be a bar -)rt°711
l City of Palm Springs 4 April 18,2007
4710-07-018
coded tag that is affixed to each controllable asset or a computer-genuated number
for group-conttolled, or untaggable assets-
5. Asset Account Code -A major classification of property to identify major grouping
of assets,i-e-, buildings,land improvements, equipment,infrastructure, etc.
G- Asset Classification Code -A subdivision of property to further identify assets,i.e.,
outdoor equipment, business machines, data processing equipment, furniture,
audiovisual equipment,books, food service equipment, etc.
7- Fund Code - As provided, and applicable by City,
8. Quantity- Unit-controlled (tagged) property will be recorded as one.
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9. Asset Description - Manufacturer's name, model, generic nomenclature, and serial
number will be utilized for unit-controlled assets. For buildings, we will describe the
type of structure, size, square footage, and building materials used-
Costing Methodology/Definitions
1. Historical Cost -The actual cost of a property to the present owner- die cost as of
the date the property was fast constructed or originally installed. When historical
L1cost is provided in a usable format, it will be included. When this information is not
readily available, An mean Appraisal will estimate the original cost by applying
teverse inflation indices to the cost of reproduction new.
2. Estimated driginal Cost - The estimated original cost of the property in
accordance with costs as of the actual or estimated date the property was first
constructed, originally installed, or purchased-
3. Direct Costing - Additional research into the historical cost documented as
provided by the City in a readily available and useable format, in the City's property
records for the original construction,improvements and betterments.
C4. Normal Costing - Estimated cost based on the cost of reproduction new indexed
by a reciprocal factor of the price increase from the appraisal date to the actual or
Lestimated acquisition date.
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5. Acquisition Date - When readily available, we will use the actual acquisition date of
the property- In the absence of readily available information, the acquisition date will
be estimated based upon American Appraisal's knowledge of the property type and
its condition-
rl G- Estimated Life -An estimate will be made of the useful life of each unit-controlled
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J asset and each group-controlled asset. The matter of historical lifing practice versus
estimated actual lives will be discussed during the planning meeting and an
acceptable approach will be developed.
1 7. Accumulated Depreciation - Will be based on the assees cost, acquisition date and
the estimated useful life utilizing the straight-line basis of depreciation- Useful liu sT�
will be based on information provided by the City or industry standards.
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DE1LrvERABLEs
The City will receive a full complemsnt of reports reflecting the results of American Appraisal's
:investigation, to include_
1_ A narrative for use by management and outside auditors to assist the City's efforts in
meeting GASB 34 capital asset reporting requirements.
2. Certificate of Values.
3. Glossary of accounts and descriptive abbreviations used.
4. Customized appraisal reports (available at a nominal charge, upon request).
Report -American Appraisal will provide the City with a Summary Appraisal Report,in accordance
with the repotting requirements set forth by the Uniform Standards of Professional Appraisal
Practice ("USPAP"). The report will present only summary discussions of the data, reasoning, and
lanalyses used in the appraisal process to develop American Appraisal's opinion of value. Supporting
documentation concerning the data, reasoning, and analyses will be retained as a part of the work
papers.American Appraisal is not responsible for unautlxofized use of its-report.
Statement on Auditing Standards (SAS) No. 70 - The American Institute of Certified Public
Accountants (AICPA) Statement on Auditing Standards (SAS) No. 70, 5unm Orgam:Cations addresses
audit procedures and reports for service organizations that provide services to a user organization
that are part of the user organization's financial information system_ In that context, SAS 70 is
applied to organizations that provide financial information system functions for processing
Li transactions such as bank trust departments, application service providers and service bureaus.
Pricewatethouse Coopers, LLP (PWC) has been retained to perform an annual audit of American
Appraisal's Electronic Property Record Asset Information System (ePRAIS).
PWC has completed their audit of our ePRAIS system and issued their report on policies and
procedures placed in operation and tests of operatrug effectiveness for ePRAIS in accordance with
SAS 70. In particular, the SAS 70 report addresses our appraisal report production system
calculations for back-trending, depreciation, accumulated depredation, and report totals that are
integral to the preparation of our appraisal tcpot*s_ It should be noted that the SAS 70 report is.
applicable to processing transactions not to the petformance of our appraisal procedures. The SAS
70 report is available to out clients and their independent auditors upon the receipt of their written
r, request.
u Capital Assets Report - The Capital Assets Report will include all capital assets with a unit cost in
excess of die City's financial capitalization thxcsixold of $5,000 and the related 1-istorical
Lj cost/estimated original cost, accumulated depreciation, and current depreciation data for financial
reporting purposes. This information will be sorted and -reported upon by account. -Sample reports
_I are included in Attachment C.
Property Accounting Summary Report - The Property Accounting Summary Report will
summarize the capital assets by Account ( Building Improvements, Equipment) the Original Cost,
Accumulated Depreciation, and Annual Depreciation.
City of Palm Springs 6 April 18,2007
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Unrecorded Additions Report - The Additions Report will include Capital Assets greater than
$5,000 inventoried during fieldwork, but not contained in the City's existing -records. American
Appraisal assumes these items represent moveable equipment assets that were purchased since the
List physical.inventory.
Unrecorded Retirements Report - The Unrecorded Retirements Report will include Capital
Assets greater than $5,000 contained in the City's existing records, but not found during the
fieldwork. American Appraisal assumes these items represent moveable equipment assets that were
retired since the last physical inventory. However, it should be noted that the items in the
Unrecorded Retirements Report could also be included in the Unrecorded Additions Report if their
asset tag has been removed since the last physical inventory. It should be noted that the scope of
American Appraisal's engagement does not include any reconciliation procedures.
� Excel File—The results of our inventory will be provided to the City in an excel spreadsheet
Client's Stated Use - Client hereby affirms that its stated purpose is to use the report created by
L� .American Appraisal for financial reporting and property control purposes only.
The reports above will be issued in two hard copies and two copies on a CD in a PDF fo:ttnat for
fu ease of-reproduction and distribution by the City.
-1 PERSONNEL
Engagement Team
Professionals assigned to this project will involve several levels of management: executive review,
Project manager, contract manager, and the appraisal staff:
The project staff will include:
Executive Review: Paul Hartnett
r , Senior Vice President
I_J Brian Roe
rIVice President
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Contract Manager: Juan Iverson
Assistant Vice President
_ Engagement Manager: Earl Criddle
lManager
J Project Participants: Quang Tran
Paul Grucnwald �r o7
Bharat KAnodia
1 The above professional staff members will have overall responsibility and ate key personnel to the
successful completion of the assignment Specific appraisal staff assignments may vary depending
City of Palm Springs 7 April 18,2007
4710-07-018
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upon current availability at the time of the authorization to proceed with this project. See
Attachment B,Professional Qualifications, for appraiser qualifications.
PROJECTED TIMETABLE
Assuming prompt authorization,American Appraisal will work with the city to determine a mutually
agreed upon start date, and issue a draft report widen sixty (60) days of the completion of fieldwork.
This estimate is based upon American Appraisal's assumption that it will not experience any change
in scope to this agreement and that the City will not cause American Appraisal to be delayed
following the completion of fieldwork.
Because of our size, American Appraisal has the resources and flexibility to adjust our schedule to
best suit the specific timing requirements of the City. Based on our current staffing and our
understanding of the project,we propose the following schedule to complete the engagement.
Week 1-2 Development of Project Plan and submission to the
ul City for approval
Week 3-5 Commence field work
Week 6-7 Continuation of field work
l Week 8-9 Costing, and teport preparation
Week 10 Production and delivery of draft report
Week 11 Review of preliminary report by the City
L� Week 12 Ptoduction of final report
If dxe above schedule needs to be altered, we will work with you to arrive at a mutually convenient
schedule.
American Appraisal will make no investigation of, nor assume any responsibility for, the existence or
fimpact of any hazardous substance, which may or may not be present on the property, in the
u development of American Appraisal's conclusion. If in the course of American Appraisal's
investigation, it is informed of or observe any hazardous substance problems with the property,
American Appraisal will note it in its report.
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1 City of Palm Springs 8 April 18,2007
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QPTIONAL SERVICES- Schedule B
The City has requested us to provide a fee related to performing three optional services in
conjuction with the primary services of the Fixed Asset Inventory-
REPLACEMENT COST FOR ALL INSURABLE ASSETS
We can provide the City with the replacement cost on the equipment assets inventoried during the
engagement excluding licensed vehicles due to the numerous factors associated with those types of
assets. We will provide a separate inventory list as a deliverable for this option-
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GPS COORDINATES FOR OUTDOOR ASSET INVENTORY
We can provide the City with the GPS coordinates for the outdoor assets inventoried during the
engagement Upon visiting the location to gather the information required for the fixed asset
inventory we would gather the coordinates at the same time-
RECOMMENDATIONS FOR FUTURE ASSET INVENTORY UPDATE PROCESSES
.American Appraisal is prepared to assist the City with developing recommendations for the
implementation of "best practices" for property management and accounting. Our experienced
fproperty management consultants possess extensive experience in assisting the public sector to
identify and correct deficiencies in the management of and accounting for fixed assets.
To provide the city with our recommendations, our consultant will conduct a review to identify
process duplication, deficiencies, non-value added procedures, and opportunities for improvement,
�l based on a review of the following areas:
Property management organization and responsibilities
Capital budgeting requirements
Property requirements determination process
Property acquisition process
Property receipt control ptoccdutes
CJIdentification and tagging controls
Property records system
Property accounting procedures
ClProperty storage and transfer control procedures
Property utilization control and management procedures
Physicalinventoiy practices
Property mamtenance systems
Multiple location control practices
Reporting process and procedures
Property disposition and retirement controls
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_I City of Palm Springs 9 April 18,2007
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SECTION C.
FEE TERMs.AND CONDrrzoNs
lA. Fee - American Appraisal's £ce takes into consideration, the scope of the project, the technical
expertise requited by American Appraisal's staff and the time requited to complete the
assigmnent. Based on American Appraisal's understanding of the project, fees are as follows
(including expenses):
Primary Service
Capital Asset Appraisal of Assets at the $ 5,000 Capitalization Threshold:
lI Please see Cost Schedule " A. "
JOptional Services
CPlease see Cost Schedule " B"
JFees include professional time for planning and executing the work through, and including,
American Appraisal's final report. Expenses include those costs for such items as office and
report processing, travel, living, computer charges, postage, and copying, which are directly
incutted by.American Appraisal staff while executing the work.
B- Change in Scope - American Appraisal's fee is based upon information presented to us in the
( i City's RFP and subsequent responses of proposcr's questions-
L 1 If you or your representatives or advisors request material assistance from us beyond that
outlined herein and subsequent to the issuance of our final report, we will be able to provide
assistance at the fee of$125 per hour. If the need arises we can provide an estimate of the fees
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J related to that assistance and secure your written awhotization to proceed prior to initiating any
fservices.
l I C. Statement of Independence - American Apptaisal's fee is based upon its estimate of
professional time to complete the work according to American Appraisal's understanding of
City's requirements and in no way is contingent upon the outcome of its conclusions of value.
D. Invoicing Schedule - American Appraisal will invoice you for professional services rendered
(including expenses). Invoices are payable by the City, upon receipt, and will be issued as the
engagement progresses as follows:
J 30% -Upon Authorization of Engagement
• Balance- Progress billings as time is incurred
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1 City of Palm Springs 10 April 18,2007
4710-07.018
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For your convenience,we are providing our remittance address and wite transfer instructions:
Remittance Address
American Appraisal Associates, Inc.
Bin 88391
Milwaukee,WI 53288-0391
Wire Transfer Instructions
Bank Name/Address: M&I Bank
770 North Water Street
Milwaukee,WI 53202
LRouting Number: 075000051
For the Credit to the Account of: American Appraisal-Associates, Inc.
Account Number- 0024274888
LE. Unpaid Invoices - We reserve the right to withhold dchvexy of preliminary conclusions ox final
zeport(s) if, when either of these are ready for delivery, any previously issued invoice remains
unpaid- Further, we teserve the right to issue the final invoice if preliminary conclusions or a
draft report have been outstanding for more than 30 days.
F. Complete Agreement - This Agreement, and any attachments or documents incorporated
herein, constitute the complete and total agreement between the two parries, and shall supersede
any preexisting or contemporaneously drafted agreements for services. In the event that you
issue a purchase order to us covering this engagement it is agreed that such purchase order is
issued for purposes of authorization and your internal use only, and none of its terms and
conditions shall modify the terns and conditions of this letter and/or related documentation, or
f I affect either patty's responsibility to the othet party as defined in this letter. Should American
l Appraisal incur additional costs as a result of the City's failure to pay invoices in accordance with
the terns stated ]herein, the City will be responsible for all costs (including but not limited to
attorney's and collection agency's fees) associated with the collection of any mid all unpaid
amounts to which American Appraisal is legally entitled. Further, American Appraisal reserves
the right to charge intczest for the City's failure to pay on a timely basis.
- American Appraisal will make no investigation of, nor assume any responsibility for, the
existence or impact of any hazardous substance, which may or may not be present on the
property, in the development of American Appraisal's conclusion. If in the course of American
l Appraisal's investigation, it is informed of or observe any hazardous substance problems with
the property,American Appraisal will note it in its report-
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1 City of Palm Springs 11 April 18,2007
4710-07-018
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GENERAL SERVICE CONDTI'IONS
Agreement—The Contract governing this engagement including these General Service Conditions
.represents the entire agreement between American Appraisal and the Client. It supersedes any prior
oral or written agreement and may not be altered except by the mutual written agreement of all
parties thereto.
Assignment — Neither party may assign, transfer, or delegate any of the rights or obligations
hereunder without the prior written consent of the other patty; unless such assignment is based
upon the lawful transfer to a successor in interest of all or substantially all of the parip's assets or
business interests.
IJClient of Record — Only the signed Client(s) of Record may rely on the results of American
Appraisal's work. No third party shall have the reliance or contractual rights of American Appraisal's
Client(s) of Record without American Appraisal's prior written consent. No party should rely on the
.results of American Appraisal's work as a substitute for its own due diligence.
Communication— Electronic media including voice-mail, e-mail, and faxes are acceptable vehicles
to communicate all materials unless such communication forms are expressly prohibited in the
Contract. Client shall not assume or deem the Client Service Team assigned by American Appraisal
to any work contemplated by the Contract to have knowledge of information provided to others not
Ll part of that team.
Contingent Fees — American Appraisal's compensation is not contingent in any way upon its
[ � opinions or conclusions or upon any subsequent event directly related to those opinions or
conclusions. Client shall pay American Appraisal's inv6ices in accordance with their stated terms.
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Confidentiality — American Appraisal will maintain the confidentiality of the Client's confidential
information with the same degree of care that American Appraisal uses to keep its own materials
confidential and shall not disclose it to anyone or use it for any purpose whatsoever other than
IJ Client's engagement, provided that in the event that American Appraisal is legally compelled to
disclose such information, American Appraisal shall provide Client with prompt written notice so
r that Client may seek a protective remedy, if available. American Appraisal shall have the right to
Il J provide access to work files as requited to comply with any quality or compliance audits
administered by any necessary accreditation or standards organizations with which its employees are
C associated. Any such access shall continue to be subject to the same confidence by both American
Appraisal and the applicable organization. Information shall not be treated as confidential if: J) it is
now ot later available to the public, (ii) at the time of disclosure to American Appraisal, the
information was already in its possession, or (1) the information was obtained from a third party
J raider no obligation of confidentiality to Client_
— Unless mandated by applicable laws or governmental regulations, Client shall not disclose any part
of American Appraisal's work product, its confidential materials, or its role in the engagement to
anyone not stipulated in the Contract, without the prior written consent of American Appraisal.
- American Appraisal shall have the right to include Client's name in American Appraisal's client list.
Force Majeure —Neither the Client nor American Appraisal shall be liable for delays or for failures
to perform according to the terms of the Contract due to circumstances that are beyond their
individual control. k
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4710-07-018
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Governing Law, Jurisdiction and Venue - This Contract shall be governed by the law of the
State of Wisconsin within the jurisdiction of any state or federal court located in Milwaukee,
Wisconsin, having subject matter jurisdiction.
Indemnification - Client shall indemnify and hold harmless American Appraisal against and from
any and all losses, claims, actions, damages, expenses or liabilities, including reasonable attorneys'
fees, to which American Appraisal may become subject in connection with this engagement, except
to the extcat finally judicially detcrnmined to have resulted from the negligence or intentional
misconduct of American Appraisal. Client's obligation for indemnification and tcimbutscmeat shall
extend to any controlling person of American Appraisal including any director, officez, employee,
subcontractor, affiliate, or agent. American Appraisal's liability to Clientshall in no event exceed the
fees it receives as a result of the engagement, except to the extent determined to have resulted from
the negligence or intentional misconduct of American Appraisal.
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American Appraisal shall indemnify and hold harmless Client against and from any and all losses,
claims, or expenses for bodily injury or property damage, in proportionate part to that which is
caused by American Appraisal personnel or representatives during the performance of the
engagement, except to the extent of Client's negligence_ While on Client's premises, the personnel
assigned by American Appraisal to any work contemplated by the Contract shall comply with all
posted safety instructions or safety procedures requested by Client.
Independent Contractor - American Appraisal and Client shall be independent contractors with
respect to each other. American Appraisal reserves the tight to use subcontractors in executing the
engagement. American Appraisal is an equal opportunity employer.
Limits on the Use of the Work - American Appraisal's report may be used only for time specific
use or uses stated in the Contract,and any other use is invalid.
LReliance on Information Provided by Client - American Appraisal is entitled to rely without
independent verification on the accuracy and completeness of all of the information provided by
LI Client or its advisors.
Retention - Unless stipulated to the contrary in the Contract or in a related written agreement,
r American Appraisal will retain as its property all files, documents, work papers, and other results,
developed during the course of the engagement. Such materials will be retained for a period of at
u least f,,e years. During this retention period, Client shall have access to these documents to assist it
in completing the specific use or uses stated in the Contract, subject only to reasonable notification.
L� Scope of the Work - American Appraisal shall be obligated only for services specified in the
Contract, and only for changes to the scope of those services that axe set forth in any subsequent
Cwritten agreement_ As a result, the scope of the work does not include unrelated services or the
responsibility to update any of the work after its completion. Further,American Appraisal reserves
the right to decline to perform any additional services, if American Appraisal believes such services
�j would create an actual or perceived conflict of intezests, or would be illegal or in violation of
- applicable regulations or professional standards.
JStandards of Performance-American Appraisal shall pez£otm the engagement in accordance with
applicable professional standards. However, professional services usually involve judgements made in
an uncertain environment and based on an analysis of data that may be unverified or subject to
change over time. Client and other parties to whom Client provides access to the results of
1 City of Palm Springs 13 April 18,Z007
4710-07-018
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American Appraisal's work shall evaluate the performance of American Appraisal based on the
specifications of the Contract as well as on the applicable professional standards.
Testimony — American Appraisal's services do not include giving testimony or participating in or
attending court or any other legal or regulatory hearing or inquiry unless provided for in the
Contract or in a subsequent written agreement
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City of P21M Springs 14 Apil 18,2007
4710-07-018
AUTHORIZATION OF SERVICES
Five copies of this Technical Proposal are being provided; if it correctly reflects the City's
understanding of American Appraisal's agreement,please confirm such by signing and returning one
copy- Note, we will be unable to deliver any conclusions, verbal or written., until we are in receipt
of this acknowledgment.
Please forward the original autborization to:
Juan Iverson
American Appraisal Associates
11835 Olympic Boulevard, Suite 1050
Los Angeles, CA 90064
310.312-8050
310.312.8058, fax
310.428.9005, cell
liverson@american-appraisal-com
Sincerely,
L1 �`
Juan Iverson
iAssistant Vice President
Please initial below to include the services offered:
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Schedule A
Primary Service
Capital Asset Appraisal.Assets at the $5,000 Capitalization Threshold
-! Schedule B
Optional Services
LDetermine replacement cost for all insurable assets
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Provide GPS location data for all outdoor asset inventory
Recommendations for future asset inventory update processes
Client of,Record: City of Palm Springs
Signature:
L.! Name (typed/printed):
Title:
Date:
—� E-Mail:
City of palm Springs 15 April 18,2007
4710-07-018
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ATTACHMENT A
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References
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References
City of Barstow
220 Bast Mountain View Street
Barstow, CA 92311 .
Richard Oakley, Finance Director
1 (760) 256-1750
J GASB 34—2006 $38,500.00
City of San Gabriel
425 South Mission Drive
San Gabtiel, CA 91778-0130
iThomas Marston, Finance Director
L.. 626.308.2812
f l GASB 34-2003 $ 24,650.00
u County of Monterey
105 West Alisal Street
f I Salinas, CA 93901
�I Gary Giboney, Division Chief- General Accounting
83 L755.5439
GASB 34-2004 $ 24,500.00
r County of Inyo
l J 224 North Edwards Street
Independence, CA 93526
( Leslie L. Chapman
u Phone: (760) 878-0252
Fax: (760) 878-0391
GASB 34- 2003 $ 22,250-00
r City of Paramount
u 16400 Colorado Avenue
Paramount, CA 90723
Jose Gomez
Phonc: (562) 220-2207
Pax: (562) 529-8497
GASB 34-2003 $ 24,250.00
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ATTACHMENT B
u Professional Qualifications
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Gene J. (Juan) Iverson
Managing Director and Assistant Vice President,
Property Appraisal Services Group
Position Gene Juan Iverson is the managing director of the Los Angeles
Property Appraisal Services Group business development staff
of American Appraisal Associates, Inc_
Experience
Valuation Mr. Iverson's appraisal expertise lies mainly in the fixed asset
area. He has also consulted on a variety of properties for the
f I purposes of audit compliance, fixed asset management,
l..J insurance and regulatory compliance related to schools,
universities, water and wastewater utilities, municipalities, and
park districts.
Formerly, as a managing principal, Mr. Iverson was
responsible for the successful completion of valuation
engagements assigned to the western region of the Property
Appraisal Services Group_ He planned projects, supervised
staff, reviewed reports, developed and monitored service
control standards, maintained client communications, and
presented appraisal reports for audit review.
L, Business Mr. Iverson joined American Appraisal in 1995 as an associate
appraiser. He was promoted to senior manager in 1999 and to
managing principal in 2002. In 2006, he started his current
L; position.
Education San Diego State University
G Bachelor of Science - Marketing
California State University- Northridge
LJ Professional American Society of Appraisers, Candidate
LAffiliations Government Finance Officers Association
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Brian Roe
Vice President-Public Services
Property Appraisal Services Group
Position Brian Roe is Vice President of Public Services for the Property
Appraisal Services Group ("PASG") of American Appraisal
Associates, Inc. ("AAA"). He is located in AAA's Oak Brook
office.
Experience
Valuation Mr. Roe has been actively engaged in the property appraisal
profession since 1982- He has consulted on a variety of
properties fox purposes of audit compliance, fixed asset
management, insurance, and regulatory compliance including the
real estate and equipment related to schools, universities,
S hospitals, nursing homes,water and wastewater utilities,
` } municipalities, park districts, and infrastructures. His clients
include educational districts, private schools,governments at all
`Li levels including special districts, and insurance consulting fttirrs.
Mr. Roe's current responsibilities include overseeing all of
PASG's public-sector valuation activities.
Burinesi Mr. Roe joined AAA in 1999 as Managing Principal;he was
LI promoted to Assistant Vice President in 2000 and to his current
position in 2003- Prior to joining AAA, he was the president and
director of profcssional services for Assediak Inc_ Mr. Roe had
also served as appraisal director within the public-sector fixed
asset consulting practice at Appraisal resources International,
Ltd., and as senior appraiser with Marshall and Stevens, Inc.
Education Moraine Valley Community College
Accounting
Professional Association of School Business Officials International
AMEadigns Colorado Association of School Business Officials
Government Finance Officers Association
Illinois Association of School Business Officials
South Carolina Association of School Business Officials
Southeast Association of School Business Officials
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Paul T. Hartnett, CPA
Seniar Vice President,
Property Appraisal Services Group
Posilion Paul T- Hartnett saves as Senior Vice President in charge of the
Property Appraisal Services Group C P.A SG") of American
Appraisal Associates, Inc. ("AAA"). Mr. Hartnett is responsible
for the management of PASG,which includes six tegional
offices; a staff of approximately 150; and specialized practices for
insurance,property records, health care,government, higher
education, and property management consulting.
Il Experience
` Valuation Mr. Hartnett has been involved in numerous property
management diagnostic consulting engagements and insurance
I appraisal projects- In addition, he recently has worked with
l publicly traded companies and their independent auditors on
capital asset inventoty and financial reconciliation engagements
to support compliance with Section 404 of the Sarbanes Oxley
- Act.
Burinert Mr. Hartnett joined AAA in 2000- Prior to joining AAA,he had
f_ been employed by I{PMG LLP since 1984 as the leader of the
Public Service assurance and consulting practice in the fittn's
Milwaukee office- Mr. Hartnett is a certified public accountant
L and has extensive experience in providing assurance and
consulting services to health-care companies,government
entincs, colleges and uuniversities, and not-for-profit
U organizations.
C� L'ducatfon University of Wisconsin - Milwaukee
Bachelor of Business Administration -Accounting
Professional American Institute of Certified Public Accountants
AIHYitions American Society of Appraisers,Affiliate Member
�j Association of Governmental Risk Pools
Risk and Insurance Management Society, Inc-
Publtcationa/ Mr. Hartnett has made numerous presentations on insurance
_1 Speeches appraisal standards- He also has contributed to National
-_ p Association of College and University Business Officers
ipublications, and conducted regional scr xinars on the
implementation of Statement of Financial Accounting Standards
Nos- 116 and 117-
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Quang D. Tran
Engagement Director,
Property Appraisal Setvices Group
Position Quang D.Tran is an engagement director for the Los.Angeles
Property Appraisal Services Group of American Appraisal
Associates, Inc. ("AAA").
Experience
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TVaduation As an engagement director,Mt.Tran has completed
infrastructure valuations for various public entities including
counties, cities, municipalities/special districts,universities,
colleges, and school districts. His area of expertise is appraising
faxed assets such as building construction;land; movable
equipment; and infrastructure including roadways, airports, and
1 flood-control facilities for financial reporting and insurance
purposes and GASB 34 compliance.
Mr. 'Tran is also responsible for taldng accurate inventory in the
field and converting and evaluating the information,which is
then processed.
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f Business Mr. Tran joined AAA in 2000 as an associate appraiser. l le was
promoted to valuation consultant in 2001, to senior valuation
consultant in 2002, and to his current position in 2003. prior to
LIjoining AAA,I&-. Tran was a controller assistant for Farwest
Corrosion Control.
i Education University of California- Riverside
Bachelor. of Science - Business Administration
Emphasis on rinance and Management
Professional American Society of Appraisers, Candidate
Affrbadons
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Earl I Criddle Jr.
Manager, Properly Appraisal Services Group
Position Earl J. Criddle Jr. is a manager for the Los Angeles Property
Appraisal Services Group ("PASG") of American Appraisal
Associates, Inc.
Experience
Valuation As a manager, Mr. Criddle has completed valuations of
infrastructure, buildings, and fixed assets, as well as land and
land improvements, for various public entities including
counties, cities, independent park districts, municipalities,
universities, colleges,risk pools, churches, schools, vocational
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sebools, and school districts- He has specialized in the
appraisal of building construction and water and wastewater
utilities. Mr. Criddle is responsible for taking accurate
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inventory of fixed assets using the Symbol system.
Mr- Criddle has valued fixed assets and buildings Tor purposes
L of insurance, accounting, and property records. He has also
completed infrastructure studies and performed valuations for
compliance with GASB 34-
Li .business Mr. Criddle joined American Appraisal in 2000 as an associate
appraiser and was promoted to valuation consultant in 2002, to
GI senior valuation consultant in 2003, and to his current position
in 2005. Prior to joining American Appraisal's PASG staff, he
was an assistant manager at Ilyatt Regency Hotels and
Resorts.
Education Xavier University of Louisiana
( I Bachelor of Science - Business Administration/Finance
LJ Professional American Society of Appraisers, Candidate
rI Affiliations
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Bhagat R. Kanodia, ASA
lEngineering Consultant,
PxopertyAppraisal Services Group
Position Bharat R. Kanodia is an engineering consultant for the
Milwaukee Property Appraisal Services Croup of American
Appraisal Associates, Inc. ("AAA").
EApa ence
Valuation As an engineering consultant,Mr- Kanodia has completed
in£zastructare valuations for various public entities including
I states, counties, cities, flood control districts, municipal/special
L_1 district insurance pools, and special housing authorities. Mr.
Kanodia manages large engagements requiring multiple levels of
CI staff experience. He has valued a wide range of assets such as
f public utilities, roadways and related infrastructure, and airports.
Mr. Kanodia also performs studies for state-level governmental
clients to assess the quality and accuracy of infrastructure
information for audit compliance.
Business Mr. Kanodia joined AAA in 2000. Prior to joining AAA, he was
president and cofounder of SURE Consulting, a cooperative
providing consulting services to local businesses and agencies.
In addition,he was a director for Engineering Co-op and
LInternship Association.
Education University of Wisconsin - Madison
r j Bachelor of Science - Mechanical Engineering
Ll Professional Aracrican Society of Appraisers,Accredited Senior Appraiser
Affthadons ("ASA") Designation - Machinery and Technical Specialties/
LMachinery and Equipment
American Society of Mechanical Engineers
LeaderShape Institute, National Facilitator
LJMetropolitan Milwaukee Chamber of Commerce
SURE Consulting, Cofounder and Advisor
Speeches Mr. Kanodia has given presentations for the NPMA (National
1 Property Management Association), addressing issues and
strategies affecting and related to GASI3 34 and 35
implementation, capital asset reporting, and compliance. In
addition, Mr. Kanodia has given various internal and client
presentations regarding valuation of infrastructute-related assets
I of public entities-
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Paul E. Gruenwald
Vice President and Managing Principal,
Property.Appraisal Services Group
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Position Paul E. Gruenwald is a Vice President and Managing Principal
:For the Milwaukee Property Appraisal Services Group of
American Appraisal Associates, Inc. ("AAA").
Experience
Valuation Mr. Gruenwald is responsible for the successful completion of
1 valuation engagements assigned to the Property Appraisal
1 Services Group. He plans projects, supervises staff, reviews
reports, develops and monitors service control standards,
fmaintains client communications, and presents appraisal
u reports for audit review.
Mr_ Gruenwald's appraisal expertise lies in the fixed asset area.
J He has participated in and managed many of the firm's largest
fixed asset engagements since joining AAA in 1972. These
engagements have required analysis of existing property
systems, consultation with clients, inventory of assets, original
and current cost valuation, application and reconciliation of
historic expenditure, records, establishment of computerized
_l databases, and the development of fixed asset policies and
procedures. Mr. Gruenwald has extensive experience in
performing GASB 34 studies, especially relating to
infrastructure valuation. He works with clients to perform
diagnostic studies for GASB 34 compliance including the
r review, analysis, and testing of clients' fixed asset records and
L procedures.
n Business Since joining the firm in 1972, Mr. Gruenwald has held
luj various positions involving valuation consulting and system
design, and he has served as vice president for a subsidiary of
the firm.. Prior to his current position, he served as manager of
CJ Systems Development.
Education University of Wisconsin - Stevens Point
Bachelor of Science - Mathematics
Professional American Society of Appraisers, Candidate
CAffiliations American Water Works Association, Asset Management� Committee Member
Association of School Business Officials International
f 1 Government Finance Officers Association
National Property Management Association
Public Risk Insurance Management Association
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Speeches Mr- Gruenwald has spoken on capital assets for various
national and local organizations including national and state
chapters of the Government Finance Officers Association
("Infrastructure Reporting GASB 34"), state chapters of the
Association of School Business Officials, the American Water
Works Association, the National Property Management
Association, the National Association of College and
University Business Officials, the Native American Finance
Officers Association ("GASB 34 Capital Assets Reporting"),
and various other conferences including a Wisconsin State
Education Convention (Fixed Assets for GASB Statement
34").
.Publications "Estimating Useful Lives for Capital Assets," Government
Finance Officers Association GAAFR.Review, May 2002
[ "Useful Lives for Infrastructure," Ohio Municipal Advisory
Council MuniNews, 2002
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[ ATTACHMENT C
� ' Sample Reports
wvl�Rf %i ChPkYAL ASSETBUIX)RT NSROOJ-SLM) hS Of 1 Wam Pytl Je
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ATTACHMENT D
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Ll Quality Assurance
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QUALITY ASSURANCE
American Appraisal Associates is continuously focused on improving its quality assurance
procedures to fulfill the quality vision expressed in our corporate mission statement: "To be the best
valuation consulting firm." Our quality strategy is based on three main themes: performance
standards, quality assurance and professional development. Our commitment to quality assurance is
demonstrated by the following:
• Developed an internal training program, overseen by a committee of senior executives,
which costs the company in excess of 31.5 million annually, and assures clients of American
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Appraisal's ability to utilize state-of-the-art valuation procedures.
Developed technical and administrative standards for all facets of appraisal services to assure
consistent appraisals to meet client needs, no matter what assets are appraised or where
located.
Il • Established specific review procedures so all reports are reviewed by manager/peer group,
prior to submission to client for adherence to standards.
_i k Testified before Congress to support regulation of appraisers.
Assisted federal agencies to establish appraisal standards (Department of Labor, Federal
Home Loan Bank Board, Securities and Exchange Commission, Treasury Department and
Resolution Trust Corporation—RTC).
Quality service is, and will continue to be, the primary focus of American Appraisal Associates. We
regard our clients as the best judges of quality service. To understand how we are meeting their
expectations, we survey every client organization to obtain feedback on our performance. During
our fiscal year ended March 31, 2006, out Property Appraisal Services Group achieved a 97% quality
rating.
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ATTACHMENT E
RFP forms
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CITY OF PALM"8PRINGS—RFP g0.07
6ACKGROUNO,.EXPERlt:NGE AND 8TAFF•QUALIFICATIONS
N6�ROROSAL WILL 8F Ga 8IORRE6 NLET. THIS.f)OGUA7fiNT 18 CO3(APLMD IN FULL. ALI,
PP SCE ITE&15 UM ST gr F LI_E OUT, Propo'er ig required to suppl owing:
1)- Cbnlraotor/1-irm Names and Address: C,rj rxn a�nF„� 1 ASFm ie*os
7-]9RaF n1..m4yj-� gl � r C 'b 1nr�QF, r T Gl horn AnnF¢
2) Name and TiOc of person au(horlrcd 0 negollata a contract for ma firm,
i
Juan Tirr+rs,n, AIIJ^ ant Vices P1+P ilea 4'
8) Telephone Nurnbora1Q 312-.860J FAXNumber.f310 )-312—RA50
f I Email Address:�Ljv rcb tamp ; ary n^nnnnr isa],.com
L1
`` 4) Tym of Firm; LT lndividuaf 01'artnershlp (8Corporallon Q Olher
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a) CofpomLloll organl7ed tlndef LLsa Jaws of[rye State pf W' ns 1n.
8) Number of years in this type of business: 1 1 1 Total Number of Employees;
I- 7 On a separate shoot of Popor,
df=scriba your Frm'c bac]cgrqund and experience andtna
Gualificatlons of your staff to sucm( fully parrofm the services as specified in Wu RFP.
Please attachment Page .1,
(Addllional sheets may he atlached,It necassory
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CITY OF PALM SPRINGS--RFP 00-01
REFERENCES
NO P811PQ§4L WILL RE�CONSIDERED UNLESS THIS DOCUMENT iS OOMpLETED IN PULL ALL
.QPPLII`ABLF ITENfS Mt1ST 8E FILLED CUY, Proposer I�required.tb supplyihe fo1l0Wing:
1. Has your firm,under its current name or any previous name,everfalled to complete any work or
contract awarded to it? S es No If yes,explain:
2, le your firm prerenfl involved in any litlgatign Wlih,an owner,Cuslgmer,or olhergovemmental
agznCy? Yes byes,explain: _
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3. Are there any Judgments,claims,arbitration proceedings or cults pending or outstanding against your
Arm or any ofits otflcers? Yes OTO-4e5,explain:
L 4) List at least four(4)current coal acts referonoes Whleh are similar to the requirements In ihls REP.
OonlrgstT Contract Account Name&Addrvso Contact P'taiem
Amount Term 8 Phone Number
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f (Additional sheds may he attached,If necessary)
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REV ISFn
.I COST SCHEDULE`'A'
FOR
FIXED ASSET INVENTORY SERVICES
Responding to Request for Proposals No,00.07,80hodule"A", for Fixed Asset Inven(my$MIWs In the
City of PRIM Springs the undarcrgnad PmPO$er proposes and agrees to perform lhc'tixed asse(Inventory
soryiCas in good Order and In accordance witty¢he specif7ca4uns. jM6'jAf provide the specified sMFces
I ferglle Cky of Palm Springs,and will aoeept ns full peymeraIhe foIl6wNg all-idc(rlsive amount:
it
TOTAL ALL-INCLUniVr. COST l jnclud6r A direct and lnditact cosfs.'hcihdlnu all outwfrpocket
ex dnsos
For tha lump sum of;
$ 32,—P;q
(PHcc la Ogur )
5 Thir v,two L'hnusan l—PiaP ht�iltlY�d�,nl lays
I (PrIou In WorUe)'
1III T_ �(Sign~W f AuModzed pepreacntaQvs)
_ Juan Iverson
(Panted Name of Authodzed RepretChtJAVa)
"sal Agsnrr]',.a.$„?5,r 7nF D4./1S/Q7
(Name of FIM) & (Data)
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Page 15 of26
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COST SCHEDULC"B"
FOR
0"ONAL SERVICES
Responding to Request for Proposals No.00-07,Schedule"B", for Optional Services in the City of Palm
Springs the Undersigned Proposer proposed and agrees to perform the Optional Services In good order
and in accordance vhth the specifications. IANe veil provide the speelfled sorv(oes for the City of Palm
Springs,and will accept as'fuil payment the following all-Inclusivo 2kmount,
fTFMIZEO COST 13Y OPTJONAL SERVICE:
f 1) DETERMINE THE RPKAGFMENT COST FORALLINSURAOLEASSETS= $ 5,000
2) PROVIDE GPS LOCATION DATA FOR ALL OUTDOOR ASSET INVENTORY=$,000
I
S) RECOMMFNDATIONs FOR FUTURE ASSET INVENTORY UPDATE PROCESSES.=$ 2„500
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"The City reserves Coe night to award all of the above Optional Services, any single Optional service or
cornWaGon of Optional servlees,or ridne of the above Optional Services,as best selves the interests of
L the City.
TOTAL ALL-INCLUSIVE COST:Pinnitldes all direct and indirect cases,inciudlnQ all ma.capggkat
sx69rises toning above three OM'orial servi,�rr •)
For the lump gum of
_.I S 10.500 _
(price in ngmes)
5.��"L^I11-I1Q�s*�>s3. five ht ri A rinll
(P1i[e in Wnr1,)
�--� �� (�Ahodzed fdap�esentallvc) — —
II .Tuan Iq�son
(Pnidlad Name of Aulnonzed Rapreeenl4ve)
American American A�p�Taisal Associate�Associate. Inc. 04/iIne. "S/�7
�I (Name•of Firm) & (Data)
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O PA(M aN
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C'�Cf fO1lHPP
(RFP 09-07)
FOR
PROVIDING FIXED ASSET INVENTORY SERVICES
1
ADDENDUM NO.2
This Addendum is being issued for the following changes and informational items:
THE FOLLOWING REVISIONS AND/OR ADDITIONS TO THE
SPECIFICATIONS ARE TO BE INCLUDED IN THE SPECIFICATIONS. THIS
ADDENDUM SHALL TAKE PRECEDENCE OVER ANYTHING CONTRARY ON
J THE PREVIOUSLY ISSUED SPECIFICATIONS AND SHALL BE REFERRED
TO HEREINAFTER AS PART OF THE CONTRACT DOCUMENTS.
CLARIFICATION:
To reiterate instructions given in the Notice Inviting Proposals, IT IS
IMPERATNE that you contact Mari Lynn Boswell, Procurement Administrative
Coordinator,via email at MariLvnn Boswell&-I)almsprings-o.cov to register as a
I Proposer, Failure to register as a Proposer may result in your fine not receiving
LLL addenda to this RFP. Failure to acknowledge addenda with your proposal may
cause your proposal to be considered non-responsive.
The City has received the following questions and is hereby providing answers
.; thereto:
RESPONSES TO QUESTIONS RECEIVED TO DATE:
LQ 1: Is there a list of the sq fcotages of the buildings listed?
A 1: 7his information was provided in the spread sheets in Addendum#1.
� Q 2: What format is the previous inventory(Excel,etc) This will be used to
list the items not found during the cunent inventory process
A 2: This information was provided in Answer#3 in Addendum#i.
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A 3:. Are there any Joint rowers assets?
A 3, Na.
Q`r: How many vehicles does the City own?
A4� 7h13Citycurrentlyhas'274vPfuclesinupemtien- thei(stoFfrxedassets
mad includ additibnai vphidles and/or equipment that is not cpera4lc under its awn
p'oweht7r has been deemed surplus and its waiting final disposition.
Q 5: Does the City owntoperate ils own bus systom?
A 5: No
f Q G: Does the City lease equipment?
A 8! Yes.
-- I Q7: .Are.there any capital leases?
AT. Yes. the City has two CAL leases for fire equipment and a
J leaSelpt/rdh'ase agreement with Canon for copy machines. At least two of these copy
machlrles are val4ed over$5,000.
By ORDER OF THE CITY OF PALM SPRINGS,CALIFORNIA
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I Craig L-Qlec{ders,C.P.M,
Procurement&Contracting Manager
-i DATE': March 1.4,2007
ADDENDUM ACKNOWLEDGMENT-
Proposer Firm Name' - -- r
Authorized Signature:
Date:4 -
L.i Acknowledgment of Reccipt of Addendum 2 Is required by signing and Including the
aeknowledgmem with your proposal. Failure to acknowledge this Addendum may result
in your proposal being deemed non-responsive
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CE PACM w
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(RFP 09-07)
FOR
PROVIDING FIXED ASSET INVENTORY SERVICES
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ADDENDUM NO.1
{ III This Addendum is being Issued for the following changes and informational Hems:
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THE FOLLOWING REVISION$ AND/OR ADDITIONS TO THE
SPECIFICATIONS ARE TO SE INCLUDED IN THE SPECIFICATIQNS, THIS
iADDENDUM SHALL TAKE PRECEDENCE OVER ANYTHING CONTRARY ON
I THE PIRrVIQU5LY ISSUED SPECIFICATIONS AND SHALL BE REFERRED
TO HEREINAFTER AS PART OF THE CONTRACT DOCUMENTS.
r CLARIFICATION:
To reiterate instructions given in the Notice Inviting Proposals, IT IS
IMPERATIVE that you contact Marl Lynn Boswell, Procurorheht Administrative
Coordinator,via email at MariLynn.BbsweuCil pglmsprinos-p,2. oy to register as a
Proposer, Failure to register as a Proposer may result in your fine not receiving
addenda to rN Js RFP. Failure to acknowledge addenda-with your proposal may
cause your proposal to be considered non-responsive.
f The City has received the following questions and is hereby providing answers
thereto:
RESPONSES TO QUESTIONS RECEIVED TO DATE
L Q 1: The city refers to a prior inventory performed approximately ten (10)
years ago. Was this effort done internally or performed by an outside firm? If an outside
firm assisted,which company?
CA 1, The last fixed asset invvenfory was done by Gr'ty staff in 1998,
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Q 2: Were any previously recorded assets tagged and, if so, can you describe
the•process and type of tag(s)used?
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A 2' Yes, the City has fredilknally used Either a green and red numbered
me1416c tag maasuiffig 33?'by i!"to identiry non-infrastructure assets, This tag has
been placed on items with a yaWe of$5,000 or greatcl; The Pinance Department
hqs not taggad a'hy items for the past two years.
4 8: It is tlnde NtAoq that the prior records will only provided in hardcupy
fbrmat—can you provide ea representative sample copy for review purposes so poWntial
bidden can better evaluate the effort required to reconcile these Ilslings?
A 3-- The fixed asset Inventaty is available electronically as an ASCII file, A
sample of the printed fixed asset inventory for the Airport is attached.
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04: Could we also be provided with a copy of your current Statement of
Values(or similar listing of'property)used to place your property insurance?
it
A 4: The City currently uses Makirdus to prepare an annual inventory and
valrvatidn of City Iaclfflf6s, Mill`of the City's faoilifics are done each year. Attached
please find the summary reports for 2005 and 2006 reflecting all City facilities. A
detailed rbport, showing the sgtfsro footage, building characteristics, improvements
and valuation,foreach facility fs also available.
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R 5! Please confirm the scope of the project will include all non-infrastructure
assets, including:
a Land
J. _ Land Improvements
c. Buildings and Building Improvements
d. •Moveable Machinery&Equipment/r'umishing§
l e, Licensed Vehioles
-� A 5., a, No
h. No
G Yes(Building Improvements Only)
d. Yes
e Yes
f Q 6; Ones your estimate of 1,950 assets include all of the above?
J A 6; Yes. Items a through c represent roughly g00 items of which 600 are
improvomems 9asdd oh this the estimated total assets to be inventoried, less
buildings and land, is 1,950-
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4 7. The RFP requires designated farms be notarized by a California Notary
Public, As our proposal is being developed out of state, will proper notarization
JI clsewhern present a problem with our response?
A 7: No,
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Q.8: With regard to Option 2 — QPS designations, please expand an
specifically Which assets yell would lute this data provided,for-
A 0., The City is considering placing radio frequency tags on specific assets
(.a.,ptgyground Structures, pu¢tic art movegple naachieery, efo.) so that they can he
frooked and located in the-even?the Amef is inadverten/fy removed or stolen from its
designatoq'location, In order tp 0,cate a his*retard of those fixed assets and their
carfeni Iosation, the City'woutr!Pike to obtain cost information to provide the.current
guagCaphical coordinates of these-firfed assets
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Q 9• Are your outdoor assets tagged with radio frequency devices. and if not
are you looking tc put this technology in place?
A P: See answer A.8 aGovo.
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• 8YORbER OF THE CITY OF PAW SPRINGS,CALIFORNIA
e
Craig •Glad 'ers ,P.M.
I- Prdcurement ontracting Manager
fDATE_ March 9,2007
L.
ADDENDUM ACKNOWLCbGME'NT!
l Proposer Firm,Name: -n+,ca'u4..��
t I
Authorized Signature: �----
Date, �-
Acknowledgment of Receipt of Addendumj 1 Is required by signing and Including the
acknowledgment with your proposal,. Faiture to acknowledge this Addendum may result
in your proposal being deemed non-responsive
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019: With nr gard to Option 2 — GP$ designations, please expand on
specifically which asselsyou would We this data provided for.
i A 8; The C'ifY i5 Considedng placing radio frequency tags op speOifie assets
(i;", playor`ound structures, public art, moveable machioery, eta)so thal.lheycan be
fracked and'located in 149 event the asset rs inadverlently removed or stolen from its
des19n9Iq'd Ipeellbo,, In order to create a base record of die$e fixed assets and their
i nufmnt locatiab, the City Would!ke to obtain cost information to previde the current
geograpbica!coordinates of these fixed assets.
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R 9: Are your outdopr assets tagged with radio fnequenoy devices, and if not
,
are you looking to put this technology in place9
A 9; see answer A.8 above.
iBY.ORDER OF THE CITY OF PALM SPRINGS,CALIFORNIA
If Dra'ig lari' ors , -
Procurement, ontrPdcting Manager
DATE: March 9,2007
i �
ADDENDUM.ACKNOWLEDGMENT: -
iProposer Firm Name: °i m'7zr G-h-.+ - ,J r-}-r sJr�� d,;5u•-iiy
Authorized Signature: _ x---• ._
LDate: 1r 6
Acknowledgment of Receipt of Addendum 9 is required by signing and including the
acknowledgment with your proposal. Failure to acknowledge this Addendum may result
in your proposal being deemed non-responsive
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09{I4R605 C7rYOFPAUASpFU4GS j
SE011C Irsa[aAcl Sum:nary.hy-EulCling Asof:9:!3R'jpSS
P�ci 1
13WINIng Descr)p[ioa Yl ar ISO N6r o7 ,Sq¢e rn R¢ laceadni COYIe Add,.se Cty 8u11C Cl0 SFalie1 F A Egclullon klpfa....ni Cent
¢a[1<ga Last Nevi AmGuaf ,Lass EXcfusicnc
En1'Ay; 01 CITY W PAW SPRINCS
SR.. 61 C]rYHALL
at PGtiiN.OFFlS:+;.`pIR.�;.f_[}{ery79ER5'Al.YL-x ps-$TRp;,N15 16"r. 2 i 17,847 3,501b45 .E5.73g 31136,565
=OTAHOLIRC44YONVJAY PADa S=RI1:GS,CA 922662
02 EOC A➢IAN.f-P.PM(-AV PP➢N1P4) 1568 2 1 74176 E611;4E3 33D,660 �460,616
5200Tk.'IWMCAhYp WAY PALI48PRINGS,CA 922a2
CQ CANOPIEWOVERED WALW AYS 1S3i i i 3,647 t27,845 &9S3 121.2R2
92P]TAF!QU[T2G4TfYOh'1'!AY PALM SFrRNGS,CA M62
SRe,[o!3l for 07: Aneel Cumt3 _35,610 O.M.SC4 302,263 3,r3P,637
Slte: a2 POLILESTAITON
01 AA':W.OF.IZER-SAFCH CEN,-o NOU TG CP.LS :?66 5 1 23,656 6,914A60 433,970 5,dCC'.iG6
iCOS.GiJ.L"Ori1'/E PALA SMKOS,CA 62262
62 T liklkG CENTER CAP�W 19T7 2 t 9,2W 693,GO6 45,5EO 651,446
203 a CIVIC DRIVE PFL1.1S RINGS,CA 92262
N MOOR,FRS,,-iW'iGFh'M4 GR4NQ'fDCMD, 1077 2 5 3.433 53T,Ot6 35,201 mi.a-.0
2005.CR9CI)AVE PALM SPRMa,,CA MM
O4 LBRWYOI l'E'GOWF E.NrEFOCM 1977 2 1 7,001 IM1155 8,970 1E9,395
209 B.CWh;CIRNE PALM SPPJNG-S,CA 92202
OS CFf3R]f TCNM 19TI 2 1 940 32,900 1,&YJ 31,260
2CO&C ,C DRIVE PA.G'I SPRLYGS,OA M62
Slla total for 02: k:-L Court 6 nmo 7-35,275 Mum 6507,995
Skx; O7 LI9F:-0RY DENIER
01 LI9Radt'i
7S75 6 s 33,920 6,477,700 323?_'06 61s3,8CB
3C0$.SIlNF3a_P:AY FALA7SFR:tlG5,.G492362
i
I`b total for 07; Coto 63,929 G437,700 523,9p] QS63,FAG
:y
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J ATTACHMENT F
-J Exceptions to RFP
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Legal Review and Exceptions
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page 18
3A Apprayriatiama. This Agreement is subject to and contingent upoa funds being appropriated
&esforb by the City Counr l of City 4`or each fiscal year covered by Ow Agroctnenk If such appropriations ato not
tla, this Agreenient shall automatically Wutinate widk sat penalty to City.
Consultant shall be compensated for all service
rendered prior to receipt of the notice of
termination.
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PAGE 19
5.55 Pertonnel. Consultant agrees to asaiga the followiog irx(Kvidtials 0 peslorm
oirr. Consultant shall not alter tho assigamapt of the folio re prior written approval of the
on4act�fficer. Asti er,tie City shall have tiro unruLricted tight to order the removal of
gz>ed by Coruultant by providing written notice to Cortsultarli
PAGIE25
Insurance
Omsaltnz[ shall procure and maintain, at its sole cost and expense, and submit coacarrently whiz its
meoutfon of this Agreement, in a Than and content satisfaotmy to City, public liability and property damage
insurance flgaittst all claims for injuries against persons or ,damages to property resulting from consultant's
performance: under lltas Agreemctit. Consultant shall also carry workers' compenwtion insurawo in accordance
with L'a Ibmia workers'compensation laws. Suoh imurance shall be kept in full force and effect during the team of
this agreement, including any extension thereof,and shall not be cancelable without thirty aft)dq written notice
tp City of airy groposcd oarlcellatien. ( extifi cares a€insursrtce evidanaing the£or6gaialg an cs,__t iacet i tC�rt its
elected officials officers, employeea, agents, and volunteers as additional natncd insured ' �`nacl aert�de�t '
shall be delivercd to and approved by City prior to oommencen W of services. The procur g of such insurance.nod
f the delivery of policies,cttrtifioates, and endorsetneets evidencing the same shall not lie construed as a limitation of
L- Consultant's obligation to indcntnify City,its elected officials,officers,agents,employees, and volunt5=-
A. hfmimttm Sew of Insurance- The minimum amount of fi m=oe required herounder shall be
as follows.
1. Cornprchensive gmend liability and personal injury with limits of at least one million
dollars NUM,,Mcombined single limit coverage per ocwrrence;
1 2. Automobile liability urstrrance with limits of at least one tnillitm dollars
per occurrence;
_ 3. -`-�
.. and
_a
a. Workers' Compensation insurance in the statutory amount as required by the Slate of
California and Employer's Liability Insurance with limits*tat least one million dollars$1 million per accurteru:e.
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Indemnification Provisions:
Page 19
l;'i13�MHIRfCATION.
To I.falleal accent Pameted bylaw, comaltam shall'ak' (A;QW004 oaf k --s--'.°•.-,,.'
4MNY, POW4, ;W Iwld kutnleas G9ty, its oktW, officdele, offfmu, mgOyws, esc* wd volvol=
slltctivclp the%demuifid Pat id`l.from and agrinst my and 91 iivhilidnc,acdoms,wiles,ciaima,dcarande,
c^am�dgmmrs, arbihatioa awards, sdllcmmts damages, demands, orders, Pecddes, Ind espensts
I..S" I*cogs and atmmey fm (coflectivaly"Claims),ioakuifag but not.Died ht Claims UZ4 fmm
arras to ardea�ofnc�rna(Copatttawt'semployecsnrrindrd�>fnceamago ran�a�r, g I�P�Yoattea
' ulquf its offic em i sentativec, and agrnfrr,
L iei�btitt txclatliag ark Clsuns wing fmw Ike ncgli or wiiiCul re�iprot�
scor>duct of the Gty,ikI eleded oftudals,ofl%ets,e;npi ,Agearr,and trolmilccsc, ifndcr na circwnslaroxs idcmmi
f I Ehc +nm�,�n- regeilem aad limits sale fnrUt in t1Ds ltgteelment by cnnsFn>Cd to !'snit Consallant'I me�s�cfde
cstionobligsfoaorotker]iabiG(yh�munder.
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ATTACHMENT G
fl I1 PROPERTY LIST
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PROPERTY LIST
1. CITY HALL
2. PALM SPRINGS AIRPORT
3. POLICE STATION
J 4. FIRE DEPARTMENT HEADQUARTERS
5. WASTE WATER TREATMENT PLANT
6. COGEN,'ERATION PLANT
7. GOLF COURSE (3)
8. CONVENTION CENTER
9. VISITORS CENTER
10. PARKS (11)
11. BASEBALL STADIUM
LI 12. ANIMAL SHELTER
13. MAIN LIBRARY
14, SATELLITE LIBRARY
15. PARKING STRUCTURE
_ 16. CORPORATIONYARD
17. FLEET OPERATIONS
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EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
10 Revised,3@3107
507639.2
Insurance
Consultant shall procure and maintain, at its sole cost and expense, and submit
concurrently with its execution of this Agreement, in a form and content satisfactory to the City,
public liability and property damage insurance against all claims for injuries against persons or
damages to property resulting from Consultant's performance under this Agreement. Consultant
shall also carry workers' compensation insurance in accordance with California workers'
compensation laws. Such insurance shall be kept in full force and effect during the term of this
Agreement, including any extension thereof, and shall not be cancelable without thirty (30) days
advance written notice to City of any proposed cancellation- Certificates of insurance evidencing
the foregoing and a certificate designating the City, its elected officials, officers, employees,
agents, and volunteers as additional named insureds on its public liability and property damage
insurance by original endorsement shall be delivered to and approved by City prior to
commencement of services. The procuring of such insurance and the delivery of policies,
certificates, and endorsements evidencing the same shall not be construed as a limitation of
Consultant's obligation to indemnify City, its elected officials, officers, agents, employees, and
volunteers.
A. Minimum Scope of Insurance. The minimum amount of insurance required
hereunder shall be as follows:
I. Comprehensive general liability and personal injury with limits of at least
one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two
million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million dollars
($1,000,000.00)per occurrence;
least 'n:,.., ,�,.n.,.... iN 1 nnn nnn nm .. s rery nnn nnG
Riiznm , �vcccai2 - .., ,
+o L nnrrnnrar rurr=r rro��f� 1 car ca � *Waived.aTl' nJ`CllZ3V'1'AOi ,
4. Workers' Compensation insurance in the statutory amount as required by
the State of California and Employer's Liability Insurance with limits of at least one million
dollars $1 million per occurrence. If Consultant has no employees, Consultant shall complete the
City's Request for Waiver of Workers' Compensation Insurance Requirement form.
For any claims related to this Agreement, Consultant's insurance coverage shall be
primary insurance as respects City and its respective elected officials, officers, employees,
agents, and volunteers. Any insurance or self-insurance maintained by City and its respective
elected officials, officers, employees, agents, and volunteers shall be in excess of Consultant's
insurance and shall not contribute with it. For Workers' Compensation and Employer's Liability
Insurance only, the insurer shall waive all rights of subrogation and contribution it may have
against City, its elected officials, officers, employees, agents, and volunteers.
B. Ge-,,erage. if -GeasultaRt--�des em. s—.—
..it:., eidie (1) t.. ..�,
r ��T�ITT��F
(j Revised:3123107
507639.2
i,'sa•faaee in-gge-x�tH 4-r"q cr'r .r-v5 th.s _ _o,.______en ee,2i-.hnszrraLri
..1«....�v��-5erfviees •�midef t'rtiri- ni �•4 .. /'l� 1n «+..:3i-pFB£E55r1y9�2�3.fl,}
�1 ``'�•�'"`kk'"-t }A'`5'.1 }3Ee-0' with +7.., ....cte�irincr,-�6 -e�Hi'�"-c`�xr-cvrvY�}3�dYi�i"•^"J e
izr 1.,, }.., FL.:.. A.Ne........�+ C.- + 1d.,..4 +l,«....-r.e...•,. 1..+:.., .-.4•
-the aFae,,iiA ieq}l tred-- rl -afRvv��RU GG-Ty-{II [
R[TL LrVi�VL
.,«�� a ..,70� al,:,. n t-•--cmz5ui't•,..a ..1,..11 ,1s„ L.., Win. ,7 +„ •,7„
° eReezE) C IY—H r�e-reqwred tail tastiranee or e fAi_„ation of the pmfesaieeal
r TTyro rr.•r'1'lnnr wp Dj,' )AIr,r T7n rp p rTV rY.• TlnnnnC P nAirrrrrn ry
���J TI �ZCYTINY+�TTGC.» l'9�TA]�i11'l4VF�+TC�ZT[.n
gLrn- C�r r>r * Waived.
C. Sufficiency of Insurers, Insurance required herein shall be provided by
authorized insurers in good standing with the State of California. Coverage shall be provided by
insurers admitted in the State of California with an A.M. Best's Key hating of B-+, Class VII, or
better, unless otherwise acceptable to the City.
D. Verification of Coverage. Consultant shall famish City with both certificates of
insurance and endorsements, including additional insured endorsements, effecting all of the
coverages required by this Agreement. The certificates and endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf All proof of insurance is to be
received and approved by the City before work commences. City reserves the right to require
Consultant's insurers to provide complete, certified copies of all required insurance policies at
any time. Additional insured endorsements are not required for Errors and Omissions and
Workers' Compensation policies.
Verification of Insurance coverage may be provided by: (1) an approved General and/or
Auto Liability Endorsement Form for the City of Palm Springs or(2) an acceptable Certificate of
Liability Insurance Coverage with an approved Additional Insured Endorsement with the
following endorsements stated on the certificate:
I. "The City of Palm Springs, its officials, employees, and agents are named as an
additional insured_.. " ("as respects City of Palm Springs Contract No. or 'for any and all
workperformed with the City"may be included in this statement).
2. "This insurance is primary and non-contributory over any insurance or self-
insurance the City may have. ("as respects City of Palm Springs Contract No. or 'far any
and all workperformed with the City" may be included in this statement).
3. "Should any of the above described policies be canceled before the expiration
date thereof, the issuing company will mail 30 days written notice to the Certificate Holder
named." Language such as, "endeavor to" mail and "but failure to mail such notice shall impose
no obligation or liability of any kind upon the company, its agents or representative" is not
acceptable and must be crossed out.
4. Both the Workers' Compensation and Employers' Liability policies shall contain
the insurer's waiver of subrogation in favor of City, its elected officials, officers, ,employees,
agents, and volunteers.
Q Revised:3/23107
5076392
�1r1�'9!O
In addition to the endorsements listed above, the City of Palm Springs shall be named the
certificate holder on the policies.
All certificates of insurance and endorsements are to be received and approved by the City
before work commences- All certificates of insurance must be authorized by a person with
authority to bind coverage, whether that is the authorized agentfbroker or insurance underwriter.
Failure to obtain the required documents prior to the commencement of work shall not waive the
Consultant's obligation to provide them.
E. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City prior to commencing any work or
services under this Agreement. At the option of the City, either the insurer shall reduce or
eliminate such deductibles or self-insured retentions as respects the City, its elected officials,
officers, employees, agents, and volunteers; or, Consultant shall procure a bond guaranteeing
payment of losses and related investigations, claim administration, and defense expenses-
Certificates of Insurance must include evidence of the amount of any deductible or self-insured
retention under the policy. Consultant guarantees payment of all deductibles and self insured
retentions.
F. Seyerability of Interests (Separation of Insureds). This insurance applies
separately to each insured against whom claim is made or suit is brought except with respect to
the limits of the insurer's liability.
13 Revised:3123/07
507639.2