HomeMy WebLinkAbout05483 - AMERICAN APPRAISAL ASSOCIATES INC FIXED ASSET INVENTORY SERVICES DOCUMENT TRACKING
Page: 1
Report: One Document Detail August 21, 2008
Condition: Document Numbera5483,
Document# Description Approval Date Expiration Date Closed Date
A5483 Fixed Asset Inventory Services 05/16/2007
Company Name: American Appraisal Associates, Inc.
Address: 411 E Wisconsin Ave., 19th Floor, Milwaukee, WI 53202
Contact: Paul Harthett, Sr. Vice-Pres.
Group: FINANCE Contract Amt. Total Paid Balance
Service: In File $37,500,00 $37,500.00
xRef: CRAIG GRAVES (760) 323-8229
Ins. Status: Certificate and Policies are OK
Document Tracking Items: Due Comoleted Tracking Amount Amount
Code Ifeim-11 cription Date Date Date Added Paid
JT To City Attorney for review and signature 05/23/2007
JT Received Agreement from Procurement. 05/23/2007 05/23/2007
kdh to CM for Sig 0513012007
kdh distrib to Procurement- IN FILE 06/05/2007
kdh /MO 8044 05/16/2007 $37,500 00
END OF REPORT ' wk � w
CONSULTING SERVICES AGREEMENT
American Appraisal Associates Inc., for Fixed Asset Inventory Services
THIS AGREEMENT FOR CONSULTING SERVICES (the "Agreement") is made and
entered into this day o£++Mw, 2007, by and between the City of Palm Springs, a California
charter city and municipal°cox oration (`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 terms 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.
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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
I. 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 detennining 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 ternis 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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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 Channes. 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.
3A 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,
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507639.2
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4. PERFORMANCE SCHEDULE
4.1 Time of Esscncc. 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 ForceForce_ Maleure. The time for performance 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 of 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 concoction
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 term 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 AyYainst Subcontracting or Assignment. 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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5076392
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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 i minter, mode, or means by which Consultant, its agents or employees, perform
the services required herein, except as otherwise set forth herein. Consultant shall perform 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 Train Project Participant
Paul Gmenwald Project Participant
Bharat Kanodia Project Participant
G. 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. INDE1VINIFICATION.
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"hrderxmifaed 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&ornr injuries to
or death of persons (Consultant's employees included), for damage to property, including
4 Revised:3M(07
50789.2
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 acid limits set forth ill
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 the
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 this 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
ownerslup 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
tunes 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 other 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 parry 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 Iaw 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 in writing.
507639.2 6 Rev1sed:3/23107
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:7uan 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 Severability. 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 phrases, 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
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: c) olj� Zook By:
David Ii- Ready
City Manager
Not-To-Exceed $ Intialed:
APPROVED AS TO FORM: ATTEST
By: LG44
Doug s C_ Holland, Ydrnes Thompson, -
City Attorney City Clerk
"CONSULTANT" _
American Appraisal Associates, lnc,
Date:� �/�-} 67 By :
—T (name) ff
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Date: �5�z &,LLt/ ,J
(name)
CILF{ 6. A6S. l
(secretary)
APPROVED BY CITY COUNCIL
1
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507Q3 2
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EXHIBIT "A"
CONSULTANT'S
SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance
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507639-2
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American Appraisal Associates'
Proposal to Provide
L� GASB 34 Appraisal Services for
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CAPITAL ASSET INVENTORY AND VALUATION SERVICES
n FOR GASB 34 IMPLEMENTATION
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J April 18, 2007
_I Submitted by:
.Yuan Iverson
Assistant Vice President
7 American Appraisal Associates
11835 Olympic Boulevard, Suite 1050
Los .Angeles, CA 90064
Phone: (310) 312-8050
1 Fax (310) 312-8058
Email address: iiverson@aaerican-anpraisal.com
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' American ApptaisaP's M1fh Year
_I April 18, 2007 REVISED
lY� Mr- Craig L- Gladders, C-P.M.
Procurement and Contracting Manager
CJ Fixed Asset Inventory Proposal
City of Palm Springs
3200 E-Tahquitz Canyon Way
Palm Springs, CA 92262
Dear Mr. Gladders:
r ,
lul Amelican Appraisal Associates, Inc. ("t#mencan Appraisal") is pleased to provide this technical
proposal for professional valuation consulting services. The purpose of our work will be to develop
I r a Comprehensive report covering the capital assets of the City of Palm Springs (the "City" or the
ILJ, "Client' to assist you in meeting the reporting requirements of the Governmental Accounting
r. Standards Board's (GASB) Statement No. 34.
' In developing out recouttnendatious, we have given consideration to the data provided in the City's
u R P, and our past experience and expertise in addressing the needs of numerous government
r� entities such as the CiLy.
American Appraisal, founded in 1896,is the world's largest valuation consulting firm with one of the
largest dedicated fitll-time professional staff dedicated to serving the Public Services corrImunity
within the valuation. industry. Valuation consulting is our only business. Neither American
Appraisal, nor any of its subsidiaries, performs accounting or bookkeeping related services.
r_( It is our cornmitment to maintain total independence and protect our clients from any
IL+ concerns of a"conflict of interest"with their auditors.
�I The implementation of GAS13 34 presents many challenges to governmental entities as financial
statements are reconfigated 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, lifmg of assets and depreciation
calculations.
II
II
In support of our commitment to the public sector we have comnvtted significant staff resouxces in-
house to service our clients, in the establishment of industry-wide standards, and in educational
fonuns including presentat ons, publications, and continuing education seminars. I-iighlights of our
l I involvement in the development of standards include the following:
, f
Senior members of American Appraisal's staff have spoken with nume+:ous groups to discuss the
Iimpact of the development of accurate property management procedures.
American Appraisal has worked in partnership with accounting firms, engineering £urns, and
governmental entities to develop and implement industty-wide standards for the proper recognition
of fixed assets.
�J CONCLUSION
'the attached proposal details our methodology to meet your specific requireuxents. If you have any
Ll additional questions or concerns, please do not hesitate to contact me at (310) 312-8050 or via e-
mail at jiverson@american-appraisalcom- 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,
u ltespcctfixlly submitted,
Juan rverson
i Assistant Vice president
r Attachments
P
D
C
C
P
TABLE OF QQNTENTS
Page
Transmittal Letter
I-ILSTORYAND BACKGROUND .................................................
EXPFRMNCE
JI RESOURCES Or•A-nffijcCAN APPRAISAL........... ....................................................
PROJECTPLANNING...-........ .................................... ................ ................. ......................
'03CHNICAL APPROACH........... 3
F-NGAGFmENrMETjIQD(DLOGY............................................................ 4
BUILDING IMPhOVENMNTS ..........................I.... ....................... ......................4
MOVEABLEEQUIPNMNT.......................................... ........................................4
DATAL1.EmENTs/DFFINrrioNs.------------- ................... ............................................................................ ..4-5
COST M.Erf-ToDoioGy...-.............-............ ......
DE11YERABLES...........................—-------------- ................. ----------------------- .........--..........................................6-7
ENGAGEMENTTEAM............................................................................................................
PROJECTEDT!IMMTABLE............................................... ............. ......... ...............
LEI
OPTIONAL SERVICES.......................... ..................... ........................9
BEE TF-Rms AND CONDITTONS.................................................... ---10-11
ru
GZNERA#L SERVICE CONDITIONS.............................................................................................................12-14
Cf
Exhibits
A References
Ll B Professional Qualifications
C Sample Reports
rr D Quality Assurance
E RrP Forms
F Exceptions to RIP
D, G property Est
SECTION A.]
,J
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 Cal cntly have
f approximately 882 full.-time employees located in 17 countries throughout the world.
Headquartered in 117,ilwaukee, Wisconsin, American Appraisars 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 Iargest dedicated full-time professional
staff eom+viittcd to serving the public sector.
American Appraisal is uniquely organized as P.multi-disciplined firm with separate practice groups
I_I focusing on appraisal and valuation consulting, services_ Out property Appraisal Services Graup
(PASG), with a staff of 105, specializes in pesfonaing insurance appraisals and capital asset
! itiventozy,reconciliation, and appraisal consulting services for governueent and not-for-profit clients
L including public entity risk pools. Many of these consultants are members of the American Society
of Appraisers and several have a degree in engineering or architecture.
I_ American Appraisal is an equal opportunity employer and does not discriminate in employment of
persons based on race, creed,national origin, sex,age, or physical handicap.
ExPERm,NCE
Since 2000,American Appraisal has assisted over 830 public sector entities in.cotnplying with GASB
L 34_ In addition, we annually process ovct 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
rr compliant reports back to them.
L
Our GASB services include providing inventory and costing for Land, Land Improvements,
fBuildings and iruprovements,Machinery and Equipment, Furniture and Fixtures,and Infrastructure.
` All governments now need to report infrastructure assets with either. consideration of depreciation
or data regarding asset condition. This means that the governments need to report in a complete,
f accurate and detailed manner to adequately account for and report their mfrasttucture activity.
L GASB allows that if determining historical cost is not practical due to inadequate records, reporting
should 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
r reporting of infrastructure assets is required four years after the effective dates for all phase I and Il
governments. This includes all ma or infrastructure assets that were acquired, reconstructed, or
significantly improved in fiscal years ending after June 30, 1980 (encouraged by GASB to go back
1.I further). However, govennments are also encouraged to report all infrastructure assets at the initial
implementation elate to avoid possible deficit in net assets.
_I
City of palm Springs I April 18,2007
4710.07-018
I� We have worked on GASB 34 projects for the States of Hawaii and New York 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-
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ItFSOURCEs of AmERICAN APPRAISAL
American Appraisal has the staff and resources to satisfactorily complete the GASB 34 project for
the City of Pahn Springs. From a Total of over 400 employees in the Unitcd States we have 105
i employees dedicated to our Ptoperty Appraisal Seraices Group that is responsible for perfuming
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.
�l PURPOSF
It is American Appraisals 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
L JI its adoption of the capital asset reporting requirements of Government Accounting Standards Board
{GASB) Statement No- 34 (GASB 34). The valuation will be as of Jane 30,2007-
� Asxredcan Appraisal will develop a detailed capital asset record ry assist the City's screed to: (a) achieve
J property accountability and stewardship of assets, (b) obtain a valuation of assets in compliance with
the requirements of GAAP, GASB 34, and GAAFB,and (c) provide data to assist you in monitoring
L assets.
PROJECT PLANNING
A mxeedrig will be held with City's management personnel to establish parameters for the appraisal
such as confirmation of capitalization thresholds,accounting depreciation (method, half year
Cl convention,lifing, etc), department/cost center control, coding structure (site,building,account,
classification, department), confirm work schedule,identify sensitive areas where we will need to be
r escorted and sources for cost records. We recommend the City's external auditor also participate in
ILJI this meeting. After the meeting a written project plan will submitted to the City for approval. After
approval the field inspection will be scheduled.
I I CITVs RESPONSIB1,LITIES.
J
Identify a representative of the City to serve as the primary on-site contact and liaison between the
City and American Appraisal
- • .Notify department ruanagers of the appraisal through rn=o or emaill and provide American
Appraisal with a copy so it can be presented to City staff when requested
• Provide a list of Deparnnent contacts including natne, title,and telephone nurabet
_j • Provide complete and open access to all designated areas including security escorts for
security-sensitive areas.
• Provide a cvotk area where there is a telephone and an electric connection for a laptop
computer
City of Palm Springs 2 April 18,2007
4710-07-018
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A.MER7cAN APPRms Ws RESPONSIBILITIES
Develop project work plan for approval by the City and extemal 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
l • Prepare preliminary mad final reports
J • Provide periodic status reports as to our. progress, or challenges, incurred throughout the
study from start to delivery
I
L.I TEcmNICALAPPRoAm
The capital assets to be included in this engagement are located in various City-owned facility sites
and structures. The :Fatalities include Capital Assets, which comprise typical municipal occupancies
(administration, education,police, fire,maintenance,parks, etc.)
Asset accounts included in the capital asset study are as follows:
• Moveable Equipment(including Licensed Vehicles)
�" • Btn'Iditl�mlmpravements
Excluded finni the services provided by this proposal are:
L1 • Laad
• Landlmptovements
I 1 i • Buildirt,�as
• Itaftastmcture
Assets below the capitaGzadou thres/cold in each account
( � .Leased equipment—Opetatfu Leases
�j Personal ptoperty ofernployees or others
• Supplies/Erpeudablcincentodes
Li 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 n.,easures, ("Special Assets") can also be
incorporated into the record, based on informaiou supplied by the City_ This inf-6-mation must be
provided to American Appraisal duririg the initial field inspection to be included in the reports_ We
will not inspect, tag or value any of the Special.Assets identified by the City.
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1 Ciry of P11M Springs 3 April 18,2007
4710-07-018
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ENGAGEMENT METHODOLOGY
-� EUROVvgtmprovements
The city has requested to have building improvements included in the 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 infortation. We will review*the
Infortuation and include in the capital asset report with the appropriate life and depzeciatioa
calculations_
`J 11Xoveable.�`gvipment
II A detailed inventory of moveable equipment will include a physical inspection of aA owned
l equipment with a unit cost in excess of the $ 5,000 capitalizaticil 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 1n assuring that no areas arc hissed.
I` It is our understanding that we will be provided with the City's most recent Fixcd Asset Ledger in
electronic format, which will,identify the assets to be inventoried.As part of our deliverable we will
provide the city with an unrecorded retirements report, these ate the assets that we were not able to
locate from the City's Fixed asset ledger. This report will contain asset number, cost, and
LI accumulated depreciation assuming the necessaty data is included in the CiWs fv'red asset ledger. In
addition,we will also provide an unrecorded additions report, this report will include any new assets
that were identified during tkrc 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
ILJI the historical cost and acquisition date information for those assets.
Specifre Data ElemerrolDefurxtions
r' In preparing the comprehensive fixed asset record of the City's assets,we will provide the following
IL J items of data on each asset, as appropriate. The specific data elements to be captured axe:
1. Asset Ucation - A system to identify the physical location of the appraised
1L11 pzoperty (site, floor,room, etc.).
r' 2. Building Identification - Where used, existing numerical identifications will
Uremain; unidentified space w-1 be numbered sequentially following the last assigned
number.
7 3. Department Number - Existing uumbers will be utilized. When not available,
American Appraisal will identfy those particular areas. Generally, only one twit
number will be applied to a particular space. The largest department repzcsentadon
will be utilized.
4. .Asset Number-A sequentially assigned asset number placed on contzolled property
by the Fixed Asset System. This can be a bar
1 City of Palm spangs 4 Apvl 18,2007
4710-07-018
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coded tag that is affixed to each controllable asset or a computer-generated number
for group-controlled, 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.
6. . Asset Classification Code-A subdivision of property to further identify assets,i.e.,
outdoor equipment, business machines, data processing equipment, furaitute,
audiovisual equipment,books, food service equipment, etc.
7. Fund Code-As provided, and applicable by City.
$. Quantity- Unit-controlled (tagged)property will be recorded as one.
9. Asset Description - Manufacturer's name, model, generic nomendatute, 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
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1_ HistoricaL Cost -The actual cost of a property to the present owaer- the cost as of
the date the property was Fast constructed or originally installed. When historical
cost is provided in a usable format, it mill be included. When this information is not
readily available, American Appraisal will estimate dac. original cost by applying
freverse inflation indices to the cosu of reproduction new.
i2 Estimated Original Cost - The estimated oggiml cost of the propcxty in
accordance with costs as of the actual or estimated date the p4operty was first
Lconstructed, originally installed, or purchased.
I 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
u records for the original construction,improvements and betterments.
n4. Normal Costing - Estimated cost based on the cost of reproduction new indexed
�LJJ by a reciprocal factor of the price increase ftom the appraisal date to the actual or
estimated acquisition dare.
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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 6. Estimated Life - An estimate will be made of the useful life of each.unit-controlled
—� asset and each group-controlled asset. The matter of bistorical lifing practice versus
estimated actual lives will be discussed eluting the planning meeting and an
acceptable approach will be developed.
7_ Accumulated Depreciation -Will be based on the asset's cost, acquisition date and
the estimated useful life utilizing the straight-luxe basis of depreciation. Useful lives
will be based on information provided by the City or industry standards.
City of Palm Spangs 5 Apal 18.2007
4710-07-018
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DELrVEAAmLEs
The City will receive a full complernent 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.
Z Certificate of Values.
3. Glossary of accounts and descriptive abbreviations used.
4. Customized appraisal reports (available at a nominal charge,upon request).
`^l Report -American Appraisal will provide the City with a Summary Appraisal Report,in accordance
with the reporting requirements set forth by the Uniform Standards of professional Appraisal
Practice ("USPAP"). The report will present only summary discussions of the data, reasoning, and
analyses used in the appraisal process to develop American Appraisal's opinion of value. Supporting
documentation conctraing.the data, reasoning, and analyses will be retained as a pact of the work
papers.Ataericaa Appraisal is not responsible for unauthorized use of its report-
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Statement on Auditing Standards (SAS) No. 70 - The American Institute of Certified Public
Accountants (AICPA) Statement on Auditing Standards (SAS) No. 70, S= 07gankations addresses
�I audit procedures and tepotts for service organizations that provide services to a user organization
that are past of the user organ zatiou's Ftnancial infoT ation system. Ta that context, SAS 70 is
applied to orgaaizations that provide financial information systera functions for processing
l� transactions such as bank trust departments, application service providers and service bureaus-
` Pticevwaterhouse Coopers, LLP (PWC) has been retained to perform an annual audit of American
r., Appraisal's Electronic property Record Asset Information Systcul (eP.RAIS)-
PWC has completed their audit of our ORAIS system and issued their report on policies and
r I procedures placed in operation and tests of operating effectiveness for ePRAIS in accordance with
SAS 70. In particular, the SAS 70 report addresses our. appraisal report production system
u calculations for hack-trending, depreciation, accumulated depreciation, and report tools that are
C in,
to the preparation of our appraisal reports. It should be noted that the SAS 70--rq1 k is.
applicable to processing transactions not to the performance of out appraisal procedures- The SAS
70 report is available to our clients and their,independent auditors upon the receipt of their written
r, request.
IL�I Capital Assets Report- 7,-he Capital Assets Report will include all capital assets with a unit cost ux
r excess of the City's Financial capitalization threshold of $5,000 and the related historical.
IFU cost/estimated original cost, accumulated depreciation, and current depreciation data fox financial
reporting purposes. This information vMl be sorted and reported upon by account. Sample reports
are included in Attachment C.
Property Accounting Summary Report - The Property Accounting Summary Report will
1 summarize the capital assets by Account ( Building Improvements, Equipment) the Original Cosr,
Accumulated Depreciation,and Annual Depreciation.
Carp of Palm Spnngs ( April 18,2007
4710-07-018
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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
last physical inventory.
Unrecorded Retitements Report - The Unrecotded Retirements Report will include Capital
Assets greater than, 55,000 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-
JExcel 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
American Appraisal for financial repotting and property control purposes only-
[� The reports above will be issued in two hard copies and two copies on a CD in a PDP format for
ease ofreproduction and distribution by the City-
` PERSONN.EL
Engagement Tearn
Professionals assigned to this project will involve several levels of management: executive review,
Jproject manager, contract manager, and the appraisal staff.
The project staff will include:
�-� Executive Review: Paul Hartnett
Senior Vice President
Brian Roe
C1Vice President
.Contract Manager: Juan Iverson
Assistant Vice President
Engagement Manager: Earl Griddle
Manager
Project Participants: QuangTran
JPaul Gruenwald
Bharat Kanodia
The above professional staff menibets will have overall responsibility and are key personnel to the
successful completion of the assignment. Specific appraisal staff assignments may vary depending
l City of Palm Springs 7 April 18,2007
I 4710-07-018
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upon current availability at the time of the authorisation to proceed with this project. See
Attachment B, Professional Qualifications, for appraises qualifrcations-
PRQL CTED TIMETABLE
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Assutping prompt authorization,American Appraisal will work with the city to determine a mutually
agreed upon start date,and issue a draft report witl-tirt sixty (60) days of the completion of fieldwork.
This estitnate is based upon American Appraisal's assumption that it will not expetiencc 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
lunderstanding of the project,we propose the following schedule to complete the engagement-
�� Meek 1-2 Development of project Plan and submission to the
City for approval
Week 3-5 Commence field work
Cl Week&7 . Continuation of field work
Week 8-9 Costing,and report preparation
week 10 Production and delivery of draft report
Week 11 Review of preliminary report by the City
Week 12 Production of final report
L� If the 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
ll impact of any hazardous substance, which may or may not be present on the property in the
development of American Apptaisal'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 is its report.
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1 City of palan Springs 8 April 18,2007
4710-07-018
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QPTIQNAL SERVICES- Schedule B
The City has requested us to provide a fee related to par.forming three optional services in
conjuction with the primary services of the Fixed Asset Inventory,
REPLACEMENT COST FOR ALL INSUR"LE,A.SSETS
We can provide the City with the replacement cost on dic equipment assets inventoried during the
engagement excluding licensed vehicles due to the numerous factors associated with those types of
assets_We rvill provide a separate inventory list as a deliverable for this option_
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GPS COORDINATES FOR OUTDOOR ASSET DZvE-NTOR'Y
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.
1.
` RECOMMENDATIONS FOR FUTURE ASSET INVENTORY UPDATE PROCESSES
L.1 Ameucan Appraisal is prepared to assist the City with developing recommendations for the
implementation of "best practices" for property management and accounting. Out experienced
Iproperty management consultants possess extensive experience in assisting the public sector to
identify and correct dcficiencics in the management of and accounting for fixed assets.
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� 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,
r� based on a review of the following areas:
II Property management organization and responsibilities
C1 Capital budgeting requirements
Property requirements deteranination process
Property acquisition process
Property receipt control procedures
�L J Identification and tagging controls
Property records system
Property accounting procedures
Ptoperty storage and transfer control procedures
Property utilization control and management proccdutes
Physical inventory practices
Property maintenance systems
Multiple location control practices
Reporting process and procedures
Property disposition and retirement controls
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7 City of Palm Springs 9 April 18,2007
4710 07-018
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1 SECTIpN C.
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PEE TE-Rms AND CONDLvoNs
A. Fee - American Appraisal's fee takes into consideration, the scope of the project, the technical
expertise required by American Appraisal's staff and the titirc.zecluired to complete the
assignment. Based on American Appraisal's understanding of the project, fees are as follows
(including expenses):
Prirnaty Service
Capital Asset Appraisal of Assets at the $5,000 Capitalization Threshold:
Please see Cost Schedule "A "
Optional Services
r. Please see Cost Schedule "B"
LFees include professional time for planning and executing the wotk through; and including,
American Appraisal's final repont. Expenses include those costs fox such items as office and
report processing, travel, living, computer charges, postage, and copying, which are directly
iacutred by American Appraisal staff while executing the wont
-I B. Change in Scope - American Appraisal's fee is based upon information presented to us in the
City's ILPP and subsequent responses of pa•oposcr.'s questions.
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If you or your representatives ox 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
rI assistance at the fee of$125 per hour. If the need arises we can provide an estimate of the fees
LI zelated to that assistance and secure your wtitten authorization to proceed prior to initiating any
�I services.
I� C. Statement of Independence - Ame scan Appraisal's fee is based upon its estimate of
professional time to complete the work according to American Appiaisal's understanding of
r l City's zequuements and in no way is contingent upon the outcome of its conclusions of value.
u D. Invoicing Schedule - American Appraisal will invoice you for professional services rendered
(including expenses). Invoices are payable by dre City, upon receipt, and will be issued as the
I� engagement progtesses as follows:
30%-Upon Authotization of Engagement
JBalance -Progress billings as time is incurred
l City of Palm Spnugs 10 April 18,2007
I 4710.07-018
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Fox your convenience,we are providing our remittance address and wire transfer instructions
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Remittance Address
American.Appraisal Associates,Inc.
Bin 88391
Milwaulree,WI 53288-0391
Wire Transfer Instructions
Bank Name/Address; M&I Bank
J770 North Water Street
Milwaukee,W153202
Routing Number.. 075000051
For the Credit to the Account,of: American Appraisal Associates, Inc.
Accotutt Number- 0024271888
E- Unpaid Invoices -We tesetve the right to withhold delivery of preliminary conclusions or final
report(s) if, when either of these are ready for delivery, any previously issued invoice remains
unpaid. Further, we reserve the right to issue the final invoice if preliminary conclusions or a
draft report have been ourstanding for more than 30 days.
F. Complete Agreement - This Agreement, and any attachments or documents incorporated
herein, constitute the complete and total agreemenr between the two parties, and shall supersede
any pmexisting or contemporaneously drafted agreements for se-tvices. In the event that you
1 i issue a pw:chasc order to us covering this engagement it is agreed that such pi rcbase order is
t issued for purposes of authorisation and your intetnal use only, and.none of its tettns and
conditions shall modify the terms and conditions of this letter and/or related documentation, or
affect either party's responsibility to the other party as defined in this letter. Should American
Appraisal incur additional costs as a result of die City's failure to pay invoices in accordance with
the terms 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 and all unpaid
amounts to which American Appraisal is legally entitled. Further, American Appraisal reserves
the right to charge interest for the City's failure to pay on a timely basis.
G
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
L 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 Ciry of balm sptings 11 April 18,2007
4710-07-018
GENERAL SERVICE CONDITIONS
I
Agreement—The Contract governing this engagement including these General Service Conditions
represents the entire agreement between American Apptaisal and the Client, it supersedes any prior
oral or written agreement and may not be altered except by the mutual written agreement of an
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 party; unless such assignment is based
upon the lawfitl transfer to a successor in interest of all or substantially all of the party's assets or
business interests.
JClient of Record — Only the signed Clicnt(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
fClieat(s) of Record without American Apptaisal's prior written consent No patty should rely on The_I results of American Appraisal's work as a substitute fox its own due diligence.
1 Communication—Mectronic media including voice-mail, e-mail, and faxes are acceptable vebicles
lto 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 ltnowledge of information provided to others not
Ll part of that team.
Contingent Pees — American Appraisal's compensation is not contingent in any way upon its
j I opinions or conclusions or upon any subsequent event directly related to those opinions or
conclusions. Client shall pay Amctican Appraisal's invoices in accotdauce with their stated terms.
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 of use it for any purpose whatsoever other than
L Client's engagement, provided that in the event that American Appraisal is legally compelled to
disclose such information, Atnetican Appraisal shall provide Client with prompt written notice so
�, that Client may seek a protective remedy, if available. ,American Appraisal shall have the right to
ll. provide accccs to work files as required to comply with any quaJI or compliance audits
administered by any necessary accreditation or standards organizations with which its employees are
associated. Any such access shall continue to be subject to the same confidence by both Azaaericap
L,
j Appraisal and the applicable organization. Information shall not be treated as confidential if. (1) it is
now or later available to the public, (it) at the tune of disclosure to American Appraisal, the
G information was already in its possession, or (fill) the information was obtained from a third party
under no obligation of confidentiality ro Client.
J Unless mandated by applicable laws or governmental regulations, Client shall not disclose any part
of Amc:tican Appmsal's work product, its confidential materials, or its tole in the engagement to
anyone not stipulated in the Contract, without the prior written consent of American Appraisal.
American Appraisal shall have the tight to include Client's name in American Appraisal's client list.
-1 Force Nlajeurc—Neither the Client not American Appraisal shall be liable for delays or for failures
to pet£orra according to the terms of the Contract due to circumstances that are beyond their
individual control.
1 City of Palm Springs 12 April 18,2007
4710-07-018
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Governing Law, Jurisdiction and Venue — This Contract shall be governed by the law of the
LI 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 ftom
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 extent finally judicially determined to have zesulted from the negligence or intentional
misconduct of American Appraisal. Client's obligation for indemnification and reimbursement shall
extend to any controlling petson of American Appraisal including any director, officer, employee,
subcontractor,affiliate, or agent. American Appraisal's liability to Client shall in no event exceed The
fees it receives as a result of the engagemenr, except to the extent determined to have resulted from
the negligence or intentional misconduct ofAmerican Appraisal.
a
A merican 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
L 11 caused by American Appraisal personnel or representatives during the, performance of the
engagement, accept to the extent of Client's negligence. While on Client's premises, the personnel
I� assigned by American Appraisal to any work contemplated by the Contract shall comply with all
u posted safety instructions or safety procedures requested by Client.
Independent Contractor — American Appraisal and Client shall be independent contractors with
respect to each othct_ American Appraisal reserves the right 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 the specific
use or uses stated in the Contract,and any other use is invalid.
L Reliance on Itrformation Provided by Client — American Appraisal is entitled to rely without
1 independent vetificatign on the accuracy and completeness of all of the information provided by
Client or its advisors.
IL Retention — Miless stipulated to the contrary in the Contract of in a related written agreement,
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
Ieast five years. Turing this retention period, Client shall have access to these documents to assist it
r, is completing the specific.Use or uses stated in the Contract, subject only to reasonable notification.
f`�' Scope of the Work — American Appraisal shall be obligated only for services specified in the
C Contract, and only for changes to the scope of those services that are set forth in any subsequent
written agreement. As a result, the scope of the work does not include unrelated services or die
responsibility to update any of the work after its completion_ Further,American Appraisal reserves .
the right to decline to perform any additional services,if Amencan Appraisal believes such services
would create an actual or perceived conflict of interests, or would be illegal or in violation of
u. applicable regulations of professional standards_
JStandatds of Performance - American Appraisal shall perform the engagement in accordance with
applicable professional standards. Ilowever,professional services usually involve judgments made in
an uncertain environtnent 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
City of Palm Springs 13 April r s,2007
4710-07-018
1
Amencau 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 —AAmesica ,.Appraisal's services do not include giving testimony or participating in or
attending court or any other legal or regulatory heating or inquizp unless provided for in the
Contract or in a subsequent written agreement
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Ciry of Palm Spungs 14 April 18,2007
4710.07-018
l AUTHORIZATION OF SER.'PICES
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Five copies of this Technical Proposal are being provided; if it correctly reflects the City's
understanding of American AppiaisaN agreement,please confirm such by signing and tet"m+ng one
copy. Note, we will be tanable to deliver; any conclusions, verbal or written, until we are in receipt
of this acknowledgment.
Please forward the original authorization to:
Jirau Iverson
American.Appraisal Associates
11835 Olympic Boulevard, Suite 1050
Los Angeles, CA 90064
310.312.8050
310.312.8058,fax
310.428.9005, cell
jrversoo@arnetican-appraisal.com
Sincerely, .
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Juan Iverson
Assistant Vice President
Please initial below to include the services offered:
Schedule A
Primary Service
Capital Asset Appraisal Assets at the $5,000 Capitalization Threshold
L� Schedule B
Optional Services
Determine replacement cost for all insurable asseis
Li Provide GPS location data for all outdoor asset inventory
rJ Recotnmendations for future asset inventory update processes
-'� Client of Record: City of Palm Springs
If Signature:
4-� Name (typed/printed):
Title:
IJI Date:
�l > -Mai-
City of Palm Springs T 15 April 18,2007
4710-07.018
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ATTACHMENT A
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References
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' References
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City of Barstow
1 220 Fast Mountain View Street
1 Barstow, CA 92311 .
Richard Oaldey, Finance Director
{ (760) 256-1750
{ GASB 34-2006 738,500.00
City of San Gabriel
425 South Mission Drive
San Gahriel,CA 91778-0130
Thomas Marston,Finance Director
LI 626-308.2812
(l GASB 34-2003 $24,650-00
u County of Monterrey
105 West Allisal Street
r Salinas, CA 93901
L Gary Giboney,Division C1uef- General Accounting
831-7555439
l GASB 34-2004 $24,500.00
County of Ingo
L 224 North Edwards Street
Independence, CA 93526
r Leslie L. Chapman
LI Phone: (760) 878-0252
Fax: (760) 878-0391
( I GASB 34- 2003 $22,250,00
( I City of Pai^aMovnt
u 16400 Colorado Avenue
Paramount, CA 90723
C Jose Gomez
Phone: (562) 220-2207
Fax: (562) 529-84-97
LGASB 34- 2003 $ 24,250-00
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ATTACHMENT B
�- Professional Qualifications
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_i Gene J. (Juan) Iverson
Managing Director and Assistant Vice President,
Property Appraisal Services Group
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.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
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Valuation Mr. Iverson's appraisal expertise lies mainly in the fixed asset
area. He has also consulted on a variety of properties for the
1 purposes of audit compliance,fixed asset management,
insurance and regulatory compliance related to schools,
universities, water and wastewater utilities, municipalities, and
park districts.
Formerly, as a managing principal,Ms- Iverson was
responsible for the successful completion of valuation
Jengagements 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.
f Business Ma•, Iverson joined American Appraisal in 1995 as an associate
L appraiser, He was promoted to senior manager in 1999 and to
managing principal in 2002. In 2006, he started his current
�1 position.
j Education San Diego Slate University
( I Bachelor of Science- Marketing
u California State University- Northridge
.Professional American Society of Appraisers, Candidate
I Affiliations
Government Finance Officers Association
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Brian Roe
Vice PresideAt-PuGlrc Services
Property Appraisal Services Gtoup
Posrtiaa Brian Igoe is Vice President of public Seiviccs for the Property
Appraisal Services Oxoup CTASG'� of American Appraisal
Associates,Inc ("AAA"). I Ie is located in AAA's Oak Brook
office.
i J Experience
T/a1a aaYan Mr. Roe has been actively engaged in the property appraisal
profession since 1982. He has consulted on a variety of
properties for purposes of audit compliance, fixed asset
management,insurance,and regulatory compliance including the
rLMI estate and equipment related to schools,universities,
hospitals,nursing homes,water aad wastewater utilities,
municipalities,park districts, and iafrastructures. His clients
include educational districts,private schools,governments at all
[^� levels including special districts, and insurance consulting firms.
Mi.Roe's current responsibilities include overseeing all of
PASG's public-sector valuation activities.
Buxinerr Mr. Roe joined AAA in 1999 as Managing Principal;he was
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 professional services for Assetlink, Inc. Mr- floe 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.
rl Education Moraine Valley Community college
LJ Accounting
r Professiawd Association of School Business Officials International.
ILJI AffjJjat[otzs Colorado Association of School.Business Officials
Govermixent Finance Officers Association
Illinois Association of School Business Officials
l 1 South Carolina Association of School Business Officials
CSoutheast.Assodation of School Busiucss Officials
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Paul T. Hartnett, CPA
Senior Wce President,
iPropertyApprats-d Services Group
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Position Paul T- Hartnett serves as Sensor Vice President in charge of the
Property Appraisal Services Group ("PASG") of American
iAppraisal Associates,Inc. (A,AA'�. Mr. Hartnett is,responsible
for the management of PASG,which includes six regional
offices;a staff of approximately 150;and specialized practices for
insurance,property recoads, health care,government,higher
education,and property management consulting-
Experience
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Val�atron Mx- Hartnett has been involved in numerous property
n anagcment diagnostic consulting engagements and insurance
appraisal projects. In addition, he recently has worked with
publicly traded companies and their independent auditors on
capital asset inventory and financial reconciliatiou engagements
to support compliance with Section 404 of the Sarbanes Oxley
Act
Bvdvers Mz- Harriett joined AAA in 2000. Prior to joining AAA,he bad
been employed by IPMG LLP since 1984 as the leader of the
Public Service assurance and consulting practice in the firm's
Milwaukee office. Mr, Hartnett is a citified public accountant
L and has extensive experience in providing assurance and
consulting services to health-care companies,government
entities, colleges and universities,and not-for-profit
organizations.
Education University of Wisconsin -Milwaukee
LiBachelor of Business Administration-Accounting
Proksslonal American Institute of Certified Public Accountants
r' Affiliations American Society of Appmisets,Affiliate Member
J Association of Governmental Risk Pools
Risk and Insurance Management Society,Tnc.
Publieattons/ Mr. I Iartnett has txnade numerous presentations on insurance
Speeches appraisal standards. He also has contributed to National
Association of College and University Business Officers
publications, and conducted regional seminars on the
_J implementation of Statement of Financial Accounting Standards
Nos. 116 and 117.
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Quay D. Tran
I Eng-agement Director,
I PropertyAppratsal Services Group
! I Posidon Quang D.Ttan is an engagement director for the Los Angeles
Property Appraisal Services Gtoup of American Appraisal
Associates, Inc. ('A LA")-
Eacpertence
Valuation As an engagement director,Mr-Tran has completed
infrastntetuce valuations for various public entities including
counties, cities,municipalities/special distrcts,universities,
I l colleges, and school districts. His area of expertise is appraising
fixed assets such as building construction;land;movable
�1 equipment; and inftastructnre including roadways,airports,and
flood-control facilities for financial reporting and insurance
purposes and GASB 34 compliance.
j Mr. Tran is also responsible for taldng accurate inventory in the
U field and converting and evaluating the information,which is
then processed-
Banners I&-. Tran joined AAA in 2000 as m associate appraiser- He was
promoted to valuation consultant in 2001, to senior valuation
consultant in 2002,and to his current position in 2003. Prior to
! joining AAA,Mr. 'Tran was a controller assistant for Farwest
Corrosion Control.
r 1 Education University of California-Riverside
�J Bachelor of Science-Business Administration
Emphasis on Finance and Management
LJ Proiessiomd American Society of Appraisers, Candidate
l Af£r.Gatiorxs
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Earl J. Criddle Jr.
Manager, Property Appraisal Services Group
Position Earl I 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, indepeudent park districts,municipalities,
universities, colleges,risk pools, churches, schools, vocational
schools, and school districts. IIe has specialized in the
appraisal of building construction and water and wastewater
utilities. Mr. Criddle is responsible for taking accurate
I_I inventory of fixed assets using the Symbol system.
Mr. Criddle has valued fixed assets and buildings for purposes
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
senior valuation consultant in 2003, and to his current position
in 2005. Prior to joining American Appraisal's PAS staff, he
was an assistant manager at Hyatt Regency Hotels and
Resorts.
Education Xavier University of Louisiana
Bachelor of Science -Business Administration/Finance
Professional American Society of Appraisers, Candidate
Affiliations
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Bharat R. Kanodia, ASA
Engineer hg Consultant,
PropertyApprais.dSerpices Group
Position Bharat R. Kanodia is an c nr ineeruhg consultant for die
Milwaukee Property Appraisal Services Group of American
Appraisal Associates, Tnc. ("-AAA°').
Esrpetience
Ilaluuliort As an engineenng consultant,Mt. Kanodia has completed
infrastructure valuations for various public entities including
states, counties,cities, flood control districts,municipal/special
district insurance pools,and special housing authorities. Mr.
Kanodia manages large engagements requiring multiple levels of
( I staff experience. He has valued a wide range of assets such as
u public utilities,roadways and related iaf astructvre,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 IVlr. Kanodia joined AAA in 2000. I'tior to joining AAA,he was
{ president and cofounder. of SUBS Consulting,a cooperative
providing consulting services to local businesses and agencies.
In addition,he was a director for Engineering Co-op and
Internship Association.
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Education University of Wisconsin-Madison
r Bachelor of Science-Mechanical Engineering
L Pro{ession d American Society of Appraisers,Accredited Senior Appraiser
n .flh5lVatlons ("ASA") Designation- Machinery and Technical Specialties/
�J Machinery and I quipnhent
American Society of Mechanical Engineers
LeaderShape Institute,National Facilitator
Metropolitan Milwaukee Chamber of Commerce
SUBS Consulting,Cofounder and Advisor
Speeches Mr_Kanodia has given presentations for the NPMA (National
I Property Management Association),addressing issues and
strategies affecting and related to GGASB 34 and 35
n implementation, capital asset reporting, and compliance. In
f addition,Mr. Kanodia has given various internal and client
presentations regarding valuation of infrastructure-related assets
'I of public entities.
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i i Paul E. Gruenwald
Vice President and Managing Principal,
Property Appraisal Services Group
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
valuation engagements assigned to the Property Appraisal
I- Services Group. He plans projects, supervises staff, reviews
reports, develops and monitors service control standards,
L l maintains client communications, and presents appraisal
LJ reports for audit review.
Mr. Gruenwald's appraisal expertise lies in the fixed asset area.
He has participated in and managed many of the£irm's largest
fixed asset engagements since joining AAA in 1971 These
engagements have required analysis of existing property
LI systems. consultation with clients, inventory of assets, original
and current cost valuation, application and reconciliation of
historic expenditure, records, establishment of computerized
databases, and the development of fixed asset policies and
procedures. Mr- Greenwald has extensive experience in
I' performing GASB 34 studies, especially relating to
infrastructure valuation. He works with clients to perform
diagnostic studies for GASB 34 compliance including the
review, analysis, and testing of clients' fixed asset records and
J procedures.
n Busiuesa Since joining the firm in 1972, Mr. Gruenwald has held
ILIi 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
Systems Development.
Education University of VJisconsitr - Stevens Point
L Bachelor of Science-Mathematics
L Professional American Society of Appraisers, Candidate
Affiliations American 'Water Works Association, Asset Management
Committee Member
Association of School Business Officials International
Govemment Finance Officers Association
�j National Property Management Association
Public Risk Insurance Management Association
li I
f Speeches Mr. Gruenwald has spoken on capital assets for various
ij
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
1 Publtcadow "Estimating Useful Lives for Capital Assets," Government
.Finance Officers Association GAAFR Review,May 2002
"Useful Lives for Infrastructure," Ohio Municipal Advisory
II� Council MLwWews, 2002
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ATTACHMENT C
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ATTACHMENT D
Quality Assurance
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1 QUALITY ASSURANCE
American Appraisal Associates is continuously focused on improving its quality assurance
procedures to fulfill the quality vision expressed in out corporate mission statement_ "to be the best
valuation consulting Emu.— Out 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!
ff Developed an internal training program, overseen by a committee of senior executives,
which costs the company in excess of$1.5 million annually, and assures clients of American
iAppraisal'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 ate appraised or. where
located-
Established specific review rocedures so all reports arc reviewed b man er ecr group,
� P P P Y � /P" � P,
prior to submission to client fox adherence to standards-
Testified before Congress to support regulation of appraisers.
Assisted federal agencies to establish appraisal standards (Department of Labor, Federal
11 Home Loan Bank Board, Securities and Exchange Commission, Treasury Department and
Resolution Trust Corporation—RTC).
L, 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
ILLLJJJI our fiscal year ended Match 31, 2006, our Property Appraisal Services Group achieved a 97% quality
( .rating-
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ATTACHMENT E
RFP ;Farms
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{ GIW OF PALIO RPR;Nd$$-RFP 09.07
I 8AGKGRQU14p,,tEkPERI�NGE ANC15TAt,P.QML0--ICATIONt
I
jyl,C,).P�'+r1PO5FlI�y1(1LI.ISE'GONSIpERF{,7 UNTLFS TI LpOCU iENT�I^t; O PL P�j.fN FLILI,. A7v,
PP. IC LCd ems rv,lF9 15'FILLC 1 T, PrOPO$0 i8 repui[Cd to aUj�plylhe fdloWinp:
f}. CgdfMWIFam Nama,snd Address Amer;pa:n a ra n�cmr-.7�1YPS.—�
�.iia q ni.+ T1�N a7:�a Sy'F�intn_v�„,•,y, _..n annF¢
I 2) Nam¢and Tltla a(pgt£onatlthorizpd w negotiate a 00nI*Ot far the flltn'
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�---il �9 ta.trlil3�Y.-v,.-P.re�',lettt r
g7 Telephone Numher!3�1 g. 3.1 p._80G2 _FAX N110b,t:LQa'312—e U. _
Small AddreeB:�,�,ya-rs[�n(lp j �p^A py�t,a].Sat.CQn1
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A) Typoof Firm; CIndryldual ❑Parfneeahip QGwporation 00ther
I.� ► 5) Corponuun organized tender tl)a iaWs Qf the Stale of, [9 i.r�QQriSin
0) ruUmber of years In this)yp4 oFb9alne8a: 17 1 TPIaI Nulnhar o!Emplpyeea• 882
7) On a separate£hOct of paper,d¢aerlha YOUr firm's b8&9round antl expcelonhe apd the _
quallACa110ns of your staff to suoosasfully peffofm the vcwlce:,as apeajfled in this RFP.
L ! Please attachment Rage P 1
(Addl0011a1 ahCcla may ba Attaphad,if noceesory) -
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.i CITY Or FAl.M5PRI IdG$—AFP 99-07
REFBFtEM6ES
lye POC 1 W S•CON$ EfdGD 11Ml E55'1'HIS L7OC11M��FG CONp)-FTEI)iq FULL AI_L
A,ftF?LI[;A51'P IT MSI5T 1!•7,a 17C1 pFPpo.;p�'Is rptltdtCtl.W bupjifyDe 01loWingr
f, bias your flrinr ugdpr Ms gVhrcrrt,n.jrn0 or aly prevlouc name,avcriallpd to eempl9l@ anywafkor
cdntVel awarded10,11? Yes .Ne IF yea,explain:
2. 10}vur firm prase inyolved in sly Illlgatlon with•an owner,cuslomp5 or other gpMrni aental
agency? Ycs h :yes,explain:
3- Are ThereanyJudgmeols,chimp•,arbifrall0d proerfPdings or surlspending or euuWndin'g against your
j fTrm or dny,Qflts oft7ccM2 Yco /(Eom,6XPWin; —
I� A:) Llsrat least four(4,)cu feet Oro simllaY to the fognimmentS In fhls RPP-
Con(I$C1.$ contract Amount'Wame&Address CatlW PAraort
Amount Term &ptron'a MUmlLer
D. .� e
(Additional sheets mayho attached,if necessary) ,
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1 A E v x 6 E n
..I .I C.OST SCHEDU.LIF AA"
FC712
FIXE0 ASSET INVENTQRY SEVI¢kS
I
Rc&pending to Eeque;l for Proposals No.69-07,Schedule"A', for F Kqd Mb ljt)nvel.$dhJ$ervlw� In tn¢
ClU of Palm springs die undarsigpad Propbaer propgses and agrees to perform$ro jmi asset inventory
sesyjpPu in good order and In amurdanCc with the speciricotlans. IrA+e`w111 pmvldc Ifrd spscifiod 2A'vicaa
r�_ forthd CtyeF pa6n Springs,and lvlll accept asiull paymedl FheigLOWing dQ-inel491ve aflidudL'
I—I TpTnL ALLeINCLUSNf¢ ly)ncludes all Hlrect and_Indim t no^E 'n hidl u aPouF.o{dnnc et
11 N% apses
Ir Par the lump swrl of.
L I (Pdc't1n P9wea) .�
11 a T.h.ir�,Y�cyo t-h�ir.anr•��r� h�ndr;tl de;l 1 zv'�
1pd�ih"w«�4l
I ( �n'w (AaU+gr4ad�Faprc;cn7e11W)
" i 1 _ Jlxnn Iversgn _
(Paisd Nome oaf A.UMOriiz6tld RepncenteliVs) eI
�ipPTll 911 r.Pf'a'I CiT F1R a ./.F.l'AA�" (7 (Dals)f 47
(Herne ar Firm) _ a: Ioara}
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G'OST SCHrDULF"P,"
FOR
OPTIONAL SERVICES
Responding to Requast,fpr Propasals No.08.07 ,8chedule"d', for Opilonal S�rvtms in(he City or Palm
Spring$the uddem'igne'd,Propo:ar peoposeg ai'td agndce to pzrfbnm Iha'CQtloo al$dwlbes in good Ordaf
and in apcgtdanco WRIT 11%0 pOsipcations. 6VVO wUl provide the spGclrod Services for the,Olty of Palm
Springs,and wili 6ccepf as full payment the follow[tig all-mcluslve amount:
ITEMIZEDTGoS.T BV OPTIONAL SERVICE;
1) VET15RMINE TNI=REAACFMENT COST FOR ALL INSURWBF A$:4ET5= 5 5�a U9„•r„_,
2) PROVIDE GPS LOCAT(OND'ATA FOR ALL OUTDOORM$L ,INVFNTQIRY'=F ,r DAD
3) RECDMMENDATIONS FOI;FUTURE ASSET INVENTORY UPDATE PROCESS M- =53,�,500
'Tho Oily rC*rges.the right to award all of the aeofre Optional$wvices,any Nngla Optional sdN)ce or
Wrnj inallon 9f OpllOnel$4,vfoes,or none of Ihe,atitivo Optional-a^BrPicUU,,.as.6oct sPMEi tl)C interests of
fhe City
"l TOTAL ALL-INCLUSIVE COST•1"inel{Id all di in d- dirnM r0 t ircclud•n5,dI oet•o°•pocket
exaWn—; sion.thh iJL6 NrrtA gphion,.4�'y�nryiceRr
i For the lump gum of;
fPlRo in pgvc)
S�' �-(L,'hnll aan�.}{err. ��n r7r nrp c3nl lsr� T �_
R fPiicxinwoNc,
i — (9 pn.Wrc afAulhodaed Rap�aentallveJ
t (Printed NOW OfAuthodzad NOprp'sanCsyvd) •���
American A r.aisa:J. Assocla L'es, Inc. O4/T8/A7
(Ngme oFF ) & (D$tAJ
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(RFP 09-07)
FOR
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PROVIDING.FIXED ASSET INVENTORY SERVICES
ADDENDUM NO.2
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1 This Addendum is being issued for the following changes and Informational items:
THE FOLLOWING REVISIONS AND/OR AOUITIONS 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.
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I CLARIFICATION:
To reiterate instructions given in the Notice Irrvlting Proposals, IT IS
IMPERATIVE that you contact Mari Lynn Boswell, Procurement Administrative
Coordinator,via email at MariI.vnn.Boswe 1@Ralmsprinos-caoov to register as a
Proposer,Failure to register as a Proposer may result In your firm not mcaiving
addenda to this RFP. Failure to acknowledge addenda with your proposal may
(((( cause your proposal to he considomd non-responsive.
The City has received the following questions and is hereby providing answers
thereto:
RESPONSES TO QUESTIONS RECEIVED TO DATE:
LJI Q 1: Is there a list of the sq rcotages of the buildings listed?
All; This Information Was provided in the spreadsheets in Addendum#1.
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L, 0 2: What format is Hie previous inventory(Excel,etc) This will be used to
list the items not found during the current inventory process
A 2: ?his information was provided in Answer#3 in Addendum#i.
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q$- Aie lhere.any Joint Powers assets?
A'a NA,
Q r' Mow many vohicles doer the City own?
A4; T%e 'l�y,CulYCnfJy has'27rl vghip7eSm 4(3eYafion. 7"he lisf•oFfXed assets
\ may imAi de addltknof Vabloles and/or equipmoh(that is not operable irhderifs awn
powdYor hag bean deamRd surplus and its wailing final disposition.
Q 5: bogs the Cdy ownloporate Its.own bus system?
A 5: Np
f Q 6: Does the City lease equipment?
j A�! Yes.
LQ 7: .Are Ihcre any capital leases?
A 7: YGs, The City has hvo CAI leases for fYe egaJprrient,,9nd a
tease/pgrCilase,p,K)1'aement Qh Canon for copy nsa,chines. A{least viva of these copy
i1vch)) orb 10luedovor$5,000.
f aY ORDER OF THE CITY OF PALM SPRINGS.CALJ r•ORNIA
Craig I.:.Gladd'em,C.P.M.
ProctfrelYtent&C(or1rauting Manager
DATE; Mardh 14,2007
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ADDENDUM ACKNOWLEC((G}}MkNT:
I( � ProPP$erFirm Name:
`-� Authoa2Gd Signature•
Pate'
�i ACknowled'grrtent of h'eceipt of Addendum 2 is roquired by >igning and Including the
adkrtowfedC�rffent VJlth your proposal. Failure to acknowledge this Addendum may result
in your proposai being deemed nonresponsive
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(RFP b9,p7
FOR
PFi0V1QING FIXED ASSET INVENTORY S,ERVIrE$
ADDENL711M No.1
This Addendum is being issued for the following charmes and Informationakho,m6:
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THE FOLLOWING REVISION$ ANDIOR ADDIM19S TO, THE
SPECINGATIONS ARC TO 13E;INCLUDE{m THE 9PUC15IC,`A-MQNS- THIS
ADDENQNM WALL FAKE PRECEDENCE OVER ANYTHING QOtM,T AR*4N
THE fore;EVI'OUSLY ISSIICO SPECIRCATICN$ AWD SHALL SE REFCFI�RED
TO HrREiNAFTCR AS'PART OF THC CONTRACT DOC1IMI�NTu.
CLARIFICATION!
To reiterat,s Ostruefiorm cdlvan iri the Notice Inviffn- PropnSals, IT IS
IMpERATIVL'1119L you Contact Mad Lynn E6mell, ProCUl2m -Administrative
Administrative
Coordinator,via email at Mari4ynn:Boswellnahs nn s=ca. {o register.as a
Proposer. Failure tp reylb°[er as a Propme inay result in your film not reciliving
addenda to this RPP. Failure to aclinowiedge addenda with your proposal rimy
cause your proposal to he cdnsldered nonresponsive.
Thd Cfty has.received the folloWibg ggasffons and is hereby provfp!fng adswats
thereto: '
RESPONSES TO QIJEST(ONS RECEIVED TO DATE.
0 t: The City refers to a prior inventory performed approximately ten ("I tl)
years ago. was this effort done internally or performed by an outside firm? If an oblslda
firm assisted,which wrnpartyP
I(I( I A 1 The fast fixed assort inventory was done by City;toff in'F898.
0 2- Were any previously raoordad assets tagged and, if so, Can y,oll dW uribe
the.process and type of tag(s)uscd7
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lI Jl Z YO$, the City has traditionally used ultJN>r a.gtz,e17 a'bd leil i)umbergd
lneMitio tag measuYir)g l"by 1(x"'tod 'ntlFjrnsn-InfrastrnCirrrl'v,55a)s, Thfs,tag has
bsern,plaiceq ph,ftems Wit{i a valde of$5„000 or grsatk.. Thp Flnonca l,lepeffmapt
has not'tagged,atly-r2ems fOPThs past two years.
43; It is ynderatopd that the prior records will:ol1ly pkpvided in hardwpy
iphrlat-•Can you pigvidp_d tepYgsentatlVp'$ample copy for review purposes sp potential
bidde?te pan Bfi{tet evaluatejhe effpt'f required to reconcile these llst'in'g87
A 3; The fixed asspl itivaataty is avallablo.electrdnicdlly as an ASCII file. A
sample of t%e l2rinfed•fi4fad asset inveolorylbr the Airport is ettachod.
- Q 4; f✓Ould we also qq lunwidod with a copy of your bffmreht Stiat£Mdnt of
Values(Or similar listing of.prgpq[ty)used to place your property insurance?
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I_ I A:4: The Gdy currently Uses Mdxlfhds to prepare .pn annual inventory and
valuatfpn of Gity tadllflfes. IW of the Eify's facilities are donp each,ye.'X Attached
please lidd the sdinmary reports for 2006 and 2006 reffecting a➢City facilities. A
detailed repod, showing the z ggoaw foetacie, building Charaofaristles improvements
and,vghfatfpn,lercaOfr fadlifyy is also avaiiablc.
91 51 please confirm the scope of the project will include all pan-infrastruoture
assets, includingr
a fend
b Land Imprbyernents
a Bddings and Building Improvements
d• Moveablo Machinery&Equipment/pumishings,
e- Licensed Vehiclaa
a. NO
b. No
a Yes(building lmprnvemezIs Only)
d. Yas
IL e. Yes
f f Q 6; Ooes your estimate of 1,950 assats include all of the abave7
IlJ AG YW Itcrns a th=gh c repraso t roughly 900 items Of Which 600 are
improvements Based opt this, tha estimated total assets to be 'inventoried, less
buildings and ldnd,is f,950,
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Q 7: The RFP regluirea designated forms be notarized by a California Mtary
.l public. As our nreposal is being aeveloped out of state, will prop£r notarization
elsewhere presapl a problem with our respon5e7
A 7• No.
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Q 8'; With regaryi to Option .2 OPS designatibhS, plaasd ekpand on
speciflcdlly WE ioh assets youvould flikethls.data provided for.
A g: The Cily m coM5 derhlq placing mdip fregryency lags on'5peoffic assef5
file„ plsyQround structures, public'ert,fnove�kle mamibely, off';sr mat they can tie
tracked alyd,Jogafe'd In, fhr:cvdppf the woof is inadvsrtently•femoVed or stolen from its
deslgnarod lo¢otfon, M.drder to &oafo.a-baso record of!hose fixed sasefS an'd fbofr
putrl'nt,locatidn, the 4lfy Would fika,to obtain cost lnforrratlgb to proVfd¢ the Gurrenf
1 I geopeaphicol ceotdtnates of these-rikpd azeets.
111I Q 9; Ara your eutdugr aasets tagged with radio Frequoncy devices, and'ff not
ate you Iookino In pot this technology in p$cal
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A d: See answer AS abpwg.
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J By 6PDER OF THE MY OF RALIO SPRINGS,CALIFORFVIA .
II Grdig L.Glad era .P.M.
_J Procto-- ht& ontractipg Manager
Ir DATA March 9,2007
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ADDENDOM ACKNQVVLEDGMENT,
Proposer Pion Name. •-1.��r3-
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Authorited StgnaturE. s---- ''-------
�
l� ACom&ledgmant of Reoelpt of Adderown 1 Is required by signing dnd molU,ding the
acknowledgment with your proposal. Failura,to.acknpwledge this Addendurh may regolt
in your proposal f eing deemed npn-respensjyd
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With regard to Option 2 — GPS dosignatiohs, pleaue eXpand on
specifically which assets you Would flU<e[Nis data provided for.
At ne Oily is wgr fdeang placing radio frpquetloy-tags qa zpedlfiv asscrs
1 ire., AlgV.gUnd 8!'YgC3vres, puplio aft, rrioVe?4le MaChiAary' Gtoj S4 thatt-they'Ccin be
foe bked awd 00'I ed fr+ttie vveot the a$sef is frladvertently removed dr ste/en fYom Hs
tleSiggBt,@!y Iptatlpl}, to 6mcr tp Chafp a Mze mmrd of fbese fixed assets ano their
eufre'nt fo>;AtM, the CIV Woold'ifte to obfafn cost fnformatlgn to proyider tFi� oUrrent
960raghical-CooOn ates of tnesg fixed asses.
4 d: Are your dotdoOr Assets tagged with radio frequency devices,and.if not.
.are you laokin�to put'thfs t'uchrtofegy in place?
AD: See anawef A.8 above
.By ORDCR OF THE CITY OF PALM SPRINGS,CALIFORNIA .
89g C hArl0.,in't.
anager
DATE. March 9;U07
Ifr ADDENDUM ACKNOWLF_DGM8NT:
I.. I Proposer Arm Name;
Authorized Slgriah.m.� r�
{ gato: 3 I ' c-4.
Aftowledgl"rlent of Reoelpl of Addendum 1 1S required by signing and including the
ackndwledgment with your proposal. FSiluro to acknowlodge this Addendum may rosult
in your gfoposal being-deemed non-MapchoiVe
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. W{1iR0Cu LIT/OFFRJ4 SPRI,'{G9
sBQ1X Insurdnr sum arY.6y.uod 2 :-s-cfc ttYQC72CCta
Pe3e.1
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Eo:fdlrtgf]escfipFart year l5O 6b�or uam Re
Coda AGtlresx C PlxcaP7�rtE E,Yc:usi�q ReF1aa'u'uA9Cgs!
City Buil[ Clsrs 5fa409 Cesi Ne4. kmm�t {ess,FKClualurts '
EnG1g; Ui C11V OFPAlMSP81WG£ _ _ _ —
Sikb: 63 C!TYEf LL,
Qi PfR:H.0 Cc"aLY14M ChAA ER$M%ZX REy RDM> AM 2 1 17,947 llWV.t% SW'.13Q 313f"M i
MR'rANQWIZGWot.'WAY RADA 8Pfdi.195.CA P2n
62 ECCADIk'f.EFFa ilgkl.PnlF:dlVy 1w 2 1 19.116 2,611AW MOC 2.4WAf0
3MTAEion..CANYQ4'A'AY PALM SPAMl3S,C 9ZM2
CAKn PIESMC Meeo WAUCWAYS i956 2 i 3.>i47 127Ad5 0,Y3 1Hi,262
32%TAYOUIR C..WMV WAY PFAd a PR41ell CA H5.62
i
sIt. Fa!for01: Rs OCo403 _3A630 b,04BA3'Y ;ry3tF3 Nqg
02 Pi]XES ZrATION
Ul W1AW.0.`Y�'.`SO$e'.,4TCHC6'hEF?1:a 1.iPGCEHS '14a5 d 23,556 5,9i9,CV] 03 oCO 3:C-0:1L}
2YJ8-CIV.L"r1Rrw PAMSPANM.C9 922M
02 1R4;!.' .CEf.R4EASSiO W. 1977 2 1 A.W3 MA00 57,:$9 C33,449 ;
2C96 CMC UR,1E PW_A15PANGS CA'-a52
03 MM FL9@.Yi 2:14,-rF l.G M4\ AMVaq 1937 2 1 31M .37,910 35,2p0 551,610
2WS.UMDRW PR-M voFIhGS CA RUM
94 1-13WIV OFPID'AO%Vr -ACE FuDO4: 39r7 2 t 1,O01 12G.'m UN 1692P3
i.P]3,CNC ORrfE FAURSPn6 S,CV 9UEZ
Oi CA?>al€i C1.'fCFI 1977 2 1 NO 3299U f,650 31,2fi0
2 W 3.CfVIC GF1YE PRS73 PRO G,%CA-W�l ;
SI!n!W.Mr 02r Asae.'Cuatl'e 33,6.i0 ],4(�275 Y{3,2E➢ 6,423,�3
31€c 7! P.IBRARY4 4T.R =
0i VB(-wti'' t976 6 1 22g29 EA1l,]i3 '323pq,Y 603,dOQ
3.005 SUF;31S'.VAY :11F.iS=rxTi35,tA 1262 j
SiI.to itar 07: s�ee!Cauvt 33.020 8,477.701 523,9C0 $,353;C30.
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ATTACHMENT F
Exceptions to RFP
it ' f
Legal .Review and Exceptions
Page 18
SA �i.thnrotiriatiom This tlgrt;emeitt is subject to aad caaitiingerit trpon funds bdUg aPpt opriated
4�rmliore by the City Council of City for each fiscal year c ve red by rite AL,=raetnent. Y suds apprOprkaticaris atn not
this A.greement.4urll aut[ituaticallp teStilinatC widiout pernakyto City.
Consultant shall be compensated for all services
rendered prior to receipt of the notice of
termination.
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5.5 1?enxvnneL Consultant ajrees to awiw3 L the following individuals top Wm t
rein. Consultant shall not alter the assigtpnwt of the folio ' re prior vnitten,approval of die
on�7 dL Officer, Actin y t ie(:try shall have ilm unrestricted right to Order(nit,"Mrlroval 6£
ssmgmrctl by Causultant by providing wtimm wdee to Consultant-
PAGE 25
Insurance
Consultant drain procure and maintain, at its sole cost and expense, and submit cmc. really Vah its
U rsxccnition of this� Agreement, in a £qmu and cariteut satisfaatamy to City, public liability and piapertp datnegc
' insurwee apfnit all claims for injuries against perwas or daivages to property rextilting from Consultant's
perfatt iaticc siader this Agmcment. Cwmultarmt shall also carry ww•kers' compensation inwrame in accordance
ttJitlt Califorimia workers'coimipensatiamm naves. Suoh insurance shall be kqt in UL farce and effect dosing the teem of
this ALgrommitt, including any extension thereof:and shall not be cancelable'A'ftltout thirty 30)da tKr'iterr tuotice
j to City of"ypippased cancellation. Certificates 4Liusumnce,uvidertairtg the£oregaistg an �sie IN Gaits
L elected oi�i,cials, officers, crnploy�eea, agents,and volwtteers as additioa4 gamed insured i 'cL e "Ope'"
shall be delivcmd to and approved by City prior to coutmencenrciat of services. The pm L;of suds insurance acid
the dclivory ofpolicias.certificates, and etidOlWnneuts evidmcing the sarric sball Tint be crnishued as a linmitation of
Consultamt rr obligation to ittdeurnify City,its elected officials,officers,agents,cmplrryces,and voluati:J m
{ A. h fjtilmunr Scone rrf Insurance: 'IU inininiu : amount of insw4rtoe required hereunder%ball be
I-! as£allows
1. CotnVmbeitsivt general liability and pctsoaal Lidury with linsits of at least one million
i doIiaas combined single limit coverage per orseutrenae;
Lper•accordance; I Aulotnobile.liability insurarice with limits of'at least one million dollars;
3.
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7 4. WorP. & Cotitpensadon iustirame in the statutory arnouto as required by the State of
C'alifnnda and Employer's Uability lnsussnce with]knits of at least one million dollars nI million lies accta=nee.
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Indemnification Provisions:
Page 19
�1k�nll�len�rnrl,
To fbD W"t euentpecmumd bylaw,Comiltamt small a r,(.g r odoisk sol. .wa..,..,.a..e.,s
s@ Ci Y, vWMI, aad hold Winkty, vs elwwd Aokls, QfEcur; eVloyaer, ngcnfsacd voted .
Attg7dy dw°[adw 160 Patdea),from W agakut any and alf MiNnsy adi>ma,tuft,claims,dmnandt,
-les, coals,�d&ments, erbitadoa twatda, acid=cnt% damage; demands, orders, pewIPA andtqow
1 4wliag legal aoap and ttlamey fens(ecllectively"Chaos").imkdig but tmf LinW to O&EM arising from
n=' pope*oUload
ConsWtanF its olliC tt MM lgee q nsontaklves, and agmlr,
„m but Mlak amh Claims arising from Iha WG�e or m31fu1 rr
3 t of d¢City,its elected oltiaiala,olGceas,ewplu=,apv%and vglmh=. Under no ci/etmuta= i&,Wad
Ithe fim m m teq*=oat and limits xt fordt is Us Ag=LcW lie conned Iir liiml ConsaltoOs nundd+fde
- ' colionrsldigatioaalelLcrliaTaiGtyhaeunder.
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ATTACHMENT G
�J PROPERTY LIST
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PROPERTY LIST
.1 1. CITY HALL
2. PALM SPRIlNGS AIRPORT
3. POLICE STATION
4. FIRE DEPARTMENT HEADQUARTERS
5. WASTE WATER TREATMENT PLANT
6. COGENERATION PLANT
7• GOLF Como,(3)
& CONVENTION CENTER
9. 'VISITORS CENTER
L 10. PARKS(11)
11. BASEBALL STADIUM
LI 12. ANDIAL SHELTER
1 13. MAIN LIBRARY
14. SATELLITE LIBRARY
M PARKING STRUCTURE
f 16. CORPORA.TIONYARD
17. FLEET OPERATIONS
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EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
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Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
]Q Revised:9/29/O7
507639.2
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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 tern 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 skull be delivered to and approved by City prior to
commencement of services. The procuring of such insurance and the delivery of politics,
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:
1. 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;
3. �a :'b�rr�issisnsf ���s���
ke85t-Or e-323311�-�$1-,99�,90n nnpef &eewicnee atiod=ir ••�-mxiiivn--�a•,tv=lai=s 7T$snv�} �
t............. .errum cnnm7nnrer rem r rmcnn;�rra,n- a W
�3aa-crF�;Sxv�sacc-r-r-r.�i�-vr�z.c�-arc-ir�'���'-�� ��r�c. zz�waza, 1'Va'iveCl.
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 $1 million per occurrence. kf Consultant has no employees, Consultant shall complete the
City's Request for Waiver of Workers' Compensation Insurance Requirement form.
For any claims related to this Agreement, Consultant's insurance coverage shall be
primary insurance as respects City and its respective elected officials, officers, employees,
agents, and volunteers. Any insurance or self-insurance maintained by City and its respective
elected officials, officers, employees, agents, and volunteers shall be in excess of Consultant's
insurance and shall not contribute with it. For Workers' Compensation and Employer's Liability
Insurance only, the insurer shall waive all rights of subrogation and contribution it may have
against City,its elected officials, officers, employees, agents, and volunteers.
B. �+FFBP5 and �n7�CFR2��f-�v"""sresc rcmxr—17FB�if109 t x� znudB
pFafessienal liability :l s# Il-a}sa agr�= atIn :«' �i .ase tail
Revised:3/23107
507639 2
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� irxsarartae ;..-�-�e��o�ed=V> 1=,e�=.e•�-„ +>n:_ a,._
^ems-�ad�e
die-co-• ax � ��.-�,
v ••b ��
,ki the-a �r eq �y�u �.a:n r-`�- a least-free viax. � of
pxucxvix--
(uoE1�A9'u�'$..idiec5 ei�sixy�—rigr-CBff1f:13tr—`6ek15u1ta11{--shall n--uxsa—oc kCq-aited-1• Previd0
e,' er3ce te Gity 4 t4a P• l;-ka5�^fi+vF-nicicq,• ins xi-�r=anx
r•ra.rrc• az.-r�^rnnr�•n r. r., rnr�•r nx,n nnr�1 rr. cnnnnc �t rlt raornarc
lfiab'71�"--�r�zx�—..i�ror� c��*�.�-viva.
rarer rn eay�C rc nrnr>u * Waived.
C. Sufrcieney 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 Rating of B++, Class VII, or
better, unless otherwise acceptable to the City.
D. Verification of Coverage. Consultant shall furnish 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 light 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:
1. "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 'for 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 expiralion
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.
12 Reviged:3123107
5076392
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M 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 agewbroker 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. Severability 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!3/23107
507639 2