Res. No. 185-06-12326RESOLUTION NO. 185-06-12326
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT WITH AMERICAN
APPRAISAL ASSOCIATES FOR AN AMOUNT NOT TO EXCEED
$$,200.00 FOR THE FEES ASSOCIATED WITH A PHYSICAL
INVENTORY OF THE CITY'S CAPITAL ASSETS, AND CHARGING THE
DISBURSEMENTS TO ACCOUNT NUMBER 001 - 1320 - 513 -3450 TITLED
"CONTRACTUAL SERVICES ACCOUNT "; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, in the Comprehensive Annual Financial Report for Fiscal Year
Ended 2005 there is a recommendation from the City's external auditor for the
City to perform a physical inventory of capital assets to improve the
tracking of assets for disposal and impairment purposes; and
WHEREAS, as part of Governmental Accounting Standards Board statement
34, the Governments are required to report capital assets with consideration
of depreciation, including land, land improvements, infrastructure,
buildings, moveable equipment, works of art and historical treasures; and
WHEREAS, in accordance with city's competitive bidding procedures, the
City Administration is recommending that American Appraisal Associates be
awarded a contract to provide inventory services for the City in accordance
to GASB 34; and
WHEREAS, American Appraisal Associates holds the City of Miami Springs
bid and several other local municipalities within Miami Dade County.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF
SOUTH MIAMI, FLORIDA:
Section 1. The City Manager be, and hereby is authorized to sign an
agreement and disburse an amount not to exceed 8,200.00 to American Appraisal
Associates Inc. to include services and software.
Section 2. The cost should be charged to Central Services Account 001-
1320- 513 -3450 (Contractual Services Account) , with a current balance of
$9,500.
Pg. 2 of Res. No. 185 -06 -12326
Section 3. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this 17th day of October 2006.
ATTEST:
Y CLER
READ AND APPROVED AS TO FORM:
a
CI ATTORNEY
COMMISSION VOTE'i.,o'
Mayor Feliu:
Vice Mayor Wiscombe:
Commissioner Palmer:
Commissioner Beckman:
Commissioner Birts:
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South Miami
A-aMr
CITY OF SOUTH MIAMI 111111
OFFICE OF THE CITY MANAGER'
INTER - OFFICE MEMORANDUM 2 00'
To: The Honorable Mayor Feliu and Members of the City Commission
From: Yvonne S. McKinley, City Manager
Date: October 17, 2006 Agenda Item:
Subject: FY 05 -06 Inventory Services
Request: A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,
FLORIDA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH AMERICAN
APPRAISAL ASSOCIATES FOR AN AMOUNT NOT TO
EXCEED $8,200.00 FOR THE FEES ASSOCIATED WITH A
PHYSICAL INVENTORY OF THE CITY'S CAPITAL
ASSETS, AND CHARGING THE DISBURSEMENTS TO
ACCOUNT NUMBER 001- 1320 -513 -3450 TITLED
"CONTRACTUAL SERVICES ACCOUNT" ; AND
PROVIDING FOR AN EFFECTIVE DATE.
Reason /Need: The attached resolution is requesting your authorization to contract
American Appraisal Associates, Inc. to conduct a physical inventory of the City's capital
assets.
Background: In June 1999, the Governmental Accounting Standards Board issued
statement 34, establishing new financial reporting standards for state, and local
governments. The Governments are required to report capital assets with consideration
of depreciation, including land, land improvements, infrastructure, buildings, moveable
equipment, works of art and historical treasures. Pursuant to Resolution #153 -03-
11703 authorization was given to the City Manager to enter into a contract with
American Appraisal Associates, Inc., to perform a valuation of City properties and
preparing an appraisal valuation report. That was the last time (2003) the City had a
physical inventory of its assets done.
Included in the Comprehensive Annual Financial Report for fiscal year ended
September 30, 2005, there is a recommendation where the City's external auditor
recommends for the City to perform a physical inventory of capital assets. This will help
improve the tracking of assets for disposal and impairment purposes.
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Approval of this firm to conduct the physical inventory for fiscal year ending September
30, 2006 will bring us in compliance with Governmental Accounting Standard Board
statement 34.
CostlAmount: $8,200
Funding Source: Fiscal Year 2006 -07 budget
Backup Documentation: Copies of the following documents:
Resolution # 153 03 11703
American Appraisal Associates, Inc. quote (includes proposed fee of $7,600 physical
inventory & $600 Electronic Data File)
Page 2 of 2
RESOLUTION NO. 153 - 03-11703
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, RELATING TO COMPLIANCE
WITH GASB 34, AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT WITH AMERICAN APPRAISAL ASSOCIATES
FOR AN AMOUNT NOT TO EXCEED $22,500.00 FOR THE FEES
ASSOCIATED WITH PERFORMING VALUATION OF CITY
PROPERTIES AND PREPARING APPRAISAL VALUATION REPORT;
AND ACQUISITION OF ASSET MANAGEMENT SOFTWARE; CHARGING
AN AMOUNT NOT EXCEEDING $17,500.00 TO ACCOUNT NUMBER
001- 2100 - 519 - 3450, TITLED NOW DEPARTMENT CONTRACTUAL
ACCOUNT AND $5,000.00 TO ACCOUNT NUMBER 001 -0000-
219.5300, TITLED ESCROW COMPUTER NETNORX; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, in June 1999, the Governmental Accounting
Standards Board issued Statement Number 34, establishing new
financial reporting standards for state and local governments
including states, counties, cities and villages; and
WHEREAS, as part of the new statement the City is required
to report its infrastructures, land, land improvements,
buildings, moveable equipment, works of art at historical cost,
net of accumulated depreciation; and
'WHEREAS, the implementation of the new - -statement by local
governments is required to be done in phases based on the size of
revenues and different.deadlines; and
WHEREAS, the City of South Miami falls in Phase 2 with a
deadline of September 30, 2003 to begin reporting its
Comprehensive Annual Financial- Statements (CAFR� in accordance
with the provisions of the new statement; and
WHEREAS,- in accordance with city's competitive bidding
procedures, the City Administration is recommending that American
Appraisal Associates be awarded a contract to provide appraisal
services for the City in accordance with the requirements of GASH
34; and
WHEREAS, American Appraisal Associates holds the City of
North Lauderdale bid and several other local municipalities
within Miami Dade County.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH-MIAMI, FLORIDA THAT:
Section 1. The City Manager be, and hereby is authorized to
sign an .agreement and disburse an amount not exceeding $22,80Q..00
to American Appraisal Associates Inc. for- appraisal services and
acquisition of.software.
Pg. 2 of Res. No. 153-03-11703
Section 2. This resolution shall take effect immediately
upon approval.
PASSED AND ADOPTED this 16th day of September 2003.
ATTES APPROVED:
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CITY CLERK YOY
READ AND APPROVED AS TO FORM: COMMISSION VO E: 5-0
Mayor Feliu: UvYea
Vice Mayor Russell: Yea
Commissioner Wiscombe-Yea
CITY ATTORNEY Commi , ssibnez Bethel: -Yea
Commissioner McCrea: Yea
CITY OF SOUTH MIAMI
United States
International
American Appraisal Associates®
-0:
r�
8833 Westmoreland Lake Drive
,;-
n
Cornelius, North Carolina 28031
Telephone (704) 439 -2515
Fax (704) 439 -0384
www,american- appraisal. com
American Appraisal's 1106 Year
August 10, 2006 (revised to include an insurance option)
(Revised September 11, 2006)
Ms Kathy L. Vazquez
Purchasing Manager
City of South Miami
6130 Sunset Drive
South Miami, FL 33143 -5093
Dear Ms. Vazquez:
American Appraisal Associates, Inc. ( "American Appraisal ") is pleased to provide our proposal for
professional valuation services to the City of South Miami (the "City "). This proposal is based on
information provided by the City, our previous experience worldng with the City, and our vast
experience with similar engagements for other municipalities. We believe that our expertise will be
of benefit to you in your present and future management of the City's capital assets.
PURPOSE
It is American Appraisal's understanding that the City requires an updated property record of
buildings /building improvements, moveable equipment, land, land improvements and infrastructure
that reflects all additions, disposals, and transfers since the performance of the last physical
inventory that was performed by American Appraisal in 2005.
American Appraisal will provide an updated capital asset record to assist the City's need to: (a)
achieve property accountability and stewardship of assets, (b) obtain a valuation of assets in
compliance with the requirements of GAAP, GASB 34, and GAAFt, and (c) provide data whereby
the City can monitor assets.
The City also requires updated insurable values to report to the Florida League of Cities.
We have included a separate explanation and fee for this option for your review.
QUALIFICATIONS
American Appraisal, founded in 1$96, is the world's largest valuation consulting firm with one of the
largest dedicated full -time professional staff dedicated to serving the Public Services community
within the valuation industry. Valuation consulting is our only business. Neither American
Appraisal, not any of its subsidiaries, performs accounting or bookkeeping related services.
It is our commitment to maintain total independence and protect our Clients from any
concerns of a "conflict of interest" with their auditors.
We Value your Uuslxess'o
American Appraisal Associates
Upon completion of the project you will be asked for your opinion on. the services provided because
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. During our fiscal year ended March 31,
2005, our Property Appraisal Services Group achieved a 97% quality rating.
In support of our commitment to the public sector we have committed significant staff resources in-
house to service our clients, in the establishment of industry- wide . standards, and in educational
forums including presentations, publications, and continuing education seminars.
PROJECT TEAM
ENGAGEMENT TEAM
Professionals assigned to this project will involve several levels of management: executive review,
project manager, contract manager, and the appraisal staff:
The project staff will include:
Executive Review:
Contract Manager:
Project Manager:
Gary Soucek
Managing Principal
Lori Flemming
Director
Craig Wilderspin
Senior Valuation Consultant
The above professional staff members will have overall responsibility and are key personnel to the
successful completion of the assignment. Specific appraisal staff assignments may vary depending
upon current availability at the time of the authorization to proceed with this project.
TECHNICAL APPROACH
I. ENGAGEMENT SCOPE FOR PROPERTY RECORDS VERIFICATION SERVICE:
The engagement will include a complete physical inventory and bar code tagging of the City's
moveable equipment consistent with the City's $500 capitalization threshold for financial reporting
purposes. We understand that the moveable equipment assets to be inventoried and bar code tagged
are located at the same locations inventoried in 2005.
The following data will be recorded /verified /updated for each asset; as applicable:
• Asset location (site, building, floor, room)
• Department
• Asset Number
• Account (land, land improvements, buildings, equipment)
• Classification Code (data processing equipment, food service equipment, etc.)
• Description
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American Appraisal Associates
• Manufacturer
• Model
• Serial Number (when readily available)
Land, Land Improvements, and Buildings /Building Improvement accounts will be updated
based on capital activity provided by the City of South Miami.
The following types of equipment will be excluded from American Appraisal's physical inventory
and bar code tagging procedures but will be included in American Appraisal's appraisal report if the
City provides us with .data regarding their existence and historical cost, prior to the completion of
the field investigation:
■ Licensed Vehicles
• Mobile Grounds Equipment
• Telephone Systems
• Communication Equipment
• Laptop Computers
• Computer Network Wiring and Equipment
The following types of equipment will be excluded. from American Appraisal's physical inventory
and bar code tagging procedures because of accounting, impairment, or ownership issues:
• Leased equipment under operating leases
• Equipment not -in- service or pending disposal
• Personal property of employees or others
The City is responsible for identifying these assets upon the commencement of American
Appraisal's fieldwork.
It should be noted that the purpose of the engagement is to facilitate financial reporting, not to test
property control procedures.
American Appraisal will not be responsible for moveable equipment not physically present or
observed during American Appraisal's on -site field inspections. ' -
Infrastructure
American Appraisal will value the City's infrastructure constructed since FY 2003, as identified to us.
American Appraisal will require data from the City which may include maps, CADs, and GIS system
data as well as any actual costs associated with the completed projects.'
American Appraisal will assign dates of construction, depreciable lives and original cost estimates, as
applicable, consistent with the methodology promulgated in Statement 34. American Appraisal will
exclude interest costs, cost overruns charged by contractors, and premiums paid for services
performed, unless evidence of such historical cost is provided by t i&-C y.
City of South Miami 3 September 11, 2006
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American Appraisal Associates
Appraisal Methodology and Defimaons
The appraisal will represent the determination of moveable equipment additions' original cost, useful
life, year of acquisition, and the calculation of accumulated depreciation and current year
depreciation.
The determination of historical cost of the moveable equipment additions will be based on generally
accepted appraisal methodologies including direct cost and normal cost approaches.
Direct Costing - Inventoried assets will match a historical cost record and will be
recorded at that amount, if possible.
Normal Costing - When direct costing cannot be employed to apply historical cost,
the cost is estimated based on a current Cost of Reproduction New indexed by a
reciprocal factor of the price increase from the estimated- date acquired to the
appraisal date. GAAP states "... it may be impossible or time- consuming to
reconstruct the actual cost of the property. GAAP states "... fixed assets should be
accounted for at cost or, if the cost is not practicably determinable at estimated
cost..." (Section 2.12 of HBJ MILLER Governmental GAAP Guide 1999).
Historical Cost - The actual cost of a property to the present owner - the cost as of
the date the property was first constructed or originally, installed. When historical
cost is provided in a usable format, it will be included. When this information is not
readily available, American Appraisal will estimate the. original cost by applying
reverse inflation indices to the cost of reproduction new.
Original Cost - The estimated original cost of the property in accordance with costs
as of the actual or estimated date the property was first constructed, originally
installed, or purchased.
Depreciation will be calculated for assets in accordance with .tbe City's financial capitalization
threshold of $500, unless otherwise confirmed with American - Appraisal staff, in writing,
depreciation will be based on the straight -line method of depreciation and the utilization of the half -
year convention. Under the half -year convention, a half -pear of depreciation is recognized in the year
of addition and in the year of retirement of the asset.
DELIVERABLES
A. Report - American Appraisal will provide the Client 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 concerning the data, reasoning, and analyses will be retained as
a part of the work papers. American Appraisal is not responsible for unauthorized use of its
report.
B. Capital Assets Report (Accounting Subledger) - The Capital Assets Report will include all
capital assets in accordance with the Client's financial capitalization threshold of $500, and the
City of South Miami 4. September 11, 2006
2505 -06 -034
American Appraisal Associates
related historical cost /estimated original cost, accumulated depreciation, and current
depreciation data for financial reporting purposes. This information will be sorted and reported
upon by account.
C. Property Control Report - The Property Control Report will include all capital assets in
accordance with the City's property management and control threshold of $500. This
information will be sorted and reported upon by location.
D. Unrecorded Additions Report - The Unrecorded Additions Report will include moveable
equipment assets inventoried and bar code tagged during field work, 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.
E. Unrecorded Retirements Report - The Unrecorded Retirements Report will include moveable
equipment assets 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 bar code
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.
At the option of the City, we will provide the results of the study in an electronic data file (Excel) at
the cost shown in the Fee section of this proposal.
II. ENGAGEMENT SCOPE FOR INSURABLE VALUES SERVICE:
The following section describes the methodology and approach to providing insurable values for
City owned property.
INCLUSIONS
The assets to be included will comprise the buildings /structures, -contents on a modeling basis, and
insurable land improvements, as listed in the Schedule of Properties provided to us (attached and
marked Exhibit B).
The above - described quantities are subject to revision based on input from the City and can be
modified with a corresponding adjustment in fees. We will work with City staff to identify locations
that should be deleted or added to the scope of work before initiating out field investigation.
Insurance Exclusions
Specific items of property excluded from coverage, per the terms of the City's current insurance
policy, will be excluded from the building valuation. In order to- accurately recognize insurance
exclusions, a copy of the policy section specifying the components excluded must be provided to
American Appraisal Associates prior to the commencement of fieldwork. If a copy of the
appropriate section(s) is not provided, property exclusions will not be considered in the valuation
process.
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American Appraisal Associates
METHODOLOGY - Buildings /Structures /Contents /Insurable Land Improvements
A. The professional services we shall perform will commence with a preliminary meeting with City
staff and our project manager for the purpose of:
• Reviewing the procedures and methods we will follow.
• Identifying the specific nature of property coverage including possible variances
from standard policy requirements, such as functional replacement or agreed amount
endorsements.
• Establishing a mutually agreeable work schedule that will not interrupt operations.
• Developing procedures for admission to the facilities and discussing any restrictions.
• Arranging for workspace and identification badges, if needed.
• Gathering any information relevant to the work such--as blueprints and drawings.
• Discussing our standard report format to see if minor changes should be made to
accommodate any internal requirements the City may have.
• City participation will be minimal and generally limited to providing access to locked
areas, supplying building plans and assistance in locating property in remote or
unmarked areas.
B. Following this meeting, our Project Manager and assigned staff will perform the field work phase
of the engagement, which will include:
• An inspection and inventory of the pertinent data such,as size, type of construction,
configurations and classification of buildings, building fixtures, building services,
interior and exterior finish, roof type
• Confirmation of addresses and zip codes for each location
• An independent gathering of local prices for labor and materials applicable to the
properties
• Site plan for each location will be provided
• An inspection and valuation of property in the open (land improvements) will be
made, to include improved parking lots, signage, antennas, radio towers, outdoor
lighting, fencing, etc.
• Digital color photograph of each structure.
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American Appraisal Associates
CONTENTS -- MODELING APPROACH
Following completion of the physical inspection of buildings, American Appraisal will use its
internally developed, proprietary database to estimate the insurable value of the contents of each
included building.
Replacement costs for each building's contents are based on'the -usage of each building, (i.e.
administration buildings, municipal facilities, maintenance or general use buildings). We use a unique
database that contains contents data from thousands of municipal buildings appraised by American
Appraisal's Property Appraisal Services Group. This system categorizes buildings by like type (those
listed above) and develops an average contents value per - square -foot of building area. This unique
approach generates a replacement cost estimate for a given building's contents (based on building
type and size) without requiring the lengthier and more costly physical inventory inspection process.
Using statistical analysis, the database has building content models for all standard public buildings.
Further, it has the ability to alter the models, when necessary, to account for above or below average
contents values, based on observation by our staff during the inspection process.
Specific items of property excluded from coverage, pet the terms of City's current insurance policy,
will be excluded from the building valuation. In order to accurately recognize insurance exclusions, a
copy of the policy section specifying the components excluded must be provided to American
Appraisal Associates prior to the commencement of . fieldwork. If a copy of the appropriate
section(s) is not provided, property exclusions will not be considered in the valuation process.
PREMISE OF VALUE
A. Based upon the data gathered, our appraisers will perform a pricing phase in order to determine
our opinion of:
Cost of Reproduction New (CRN), defined as the -amount required to reproduce a
duplicate or a replica of the entire property at one time in like kind and materials in
accordance with current market prices for materials, labor and manufactured equipment,
contractors` overhead and profit, and fees, but without provision for overtime, bonuses for
labor, or premiums for material or equipment. Cost of Reproduction New is synonymous to
the insurance industry term "Replacement Cost ".
B. The appraisal will not consider the replacement of the property to conform with local building
codes, ordinances, or other legal restrictions; nor will it consider the cost of demolition in
connection with reconstruction or the removal of destroyed property.
C. It should be noted that the pricing phase of the engagement is critical to the accuracy of our
opinion. Sources of information, which we use in this phase, include:
Manufacturers' price lists, catalogs, and quotes
Distributor and supply company catalogs
Industry publications, directories, and trade journals
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American Appraisal Associates
• Consulting, cost engineering, cost estimating manuals, and handbooks
• Technical and pricing subscription services and pricing guides
• Contract documents /invoices you may supply
• Technical service organizations and industry experts
D. Our appraisers who perform the on -site fieldwork complete the pricing phase themselves,
utilizing their own notes from the field and the other sources mentioned above. This then is
reviewed by managers in the firm as part of our extensive Quality-Review Program. We believe that
our clients are the ultimate beneficiaries of this attention to detail.
REPORT
A. After completion of our fieldwork and pricing, we will furnish our report to you in duplicate. We
Plan to use our proprietary software to generate your reports. The -report will include:
We will provide reports on 8 1/2" x 11" laser printed -paper and in PDF form on
CD -ROM
Photographs
Contents Valuation - Modeling
B. We are interested in your complete satisfaction, and therefore, after you receive our reports, we
will contact you to discuss any questions or comments you may have.
C. We will provide a Summary Appraisal Report, intended to comply with the reporting
requirements set forth by the Uniform Standards of Professional Appraisal Practice ( "USPAP ") for a
Summary Appraisal Report. As such, 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 concerning the data, reasoning, and analyses will be retained as a
part of our work papers. The depth of discussion contained in .the xpport will be specific to your
needs as the client and for the intended use stated below. As an insurance appraisal, it is appropriate
to only use the cost approach in our appraisal. American Appraisal is not responsible for
unauthorized use of its report.
You confirm that the purpose, your intended use, of the report will be for insurance placement
purposes.
TIMING
American Appraisal will issue a final report within sixty (60) days of its completion of fieldwork.
This estimate is based upon American Appraisal's assumption that.it will not experience any change
in scope to this agreement, and that the City will not cause - American Appraisal to be delayed
following the completion of fieldwork.
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American Appraisal Associates
FEE TERMS AND CONDITIONS
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; tune required to complete the
assignment. Based on American Appraisal's understanding of the project, the fee options for this
project, including expenses, will be:
Option I. Property Records Verification Study $7,600.00
(updated property record of buildings /building
improvements, moveable equipment, land,
land improvements and infrastructure.)
Option II. Insurable Values Study $4,750.00
(buildings, contents, land improvements)
Electronic Data File $= 600.00
Fees include professional time for planning and executing the work through, and including,
American Appraisal's final report. Expenses include those costs for such items as office and
report processing, travel, living, computer charges, postage, and copying, which are directly
incurred by American Appraisal's staff while executing the work, .
Should you require additional bar code tags, American Appraisal recommends plastic bar coded
asset tags from ParCode Symbology. The tags will be plastic (polyester) labels, Code 39, and the
approximate size will be 1" x 2" with a minimum order of 3,000 at $.08 per tag. The ParCode
Symbology tag order form is included as Attachment A.
B. Change in Scope /Additional Square Footage - American Appraisal's fee is based upon the
understanding that the City's assets are located -in 13 buildings, at approximately 56,072 gross
square feet, which is the primary basis of the estimate for project fees. If the actual square
footage area varies from the reported area, American Appraisal will notify the City immediately
upon discovery. Upon written authorization from the City to continue its appraisal of the
additional square footage, American Appraisal will continue with its appraisal at a rate agreed to
by both parties in writing.
If you or your representatives or advisors . request material. assistance from us beyond that
outlined herein and subsequent to the issuance of our final report, we will provide you with an
estimate of the fees related to that assistance and secure your written authorization to proceed
prior to initiating any services.
C. Statement of Independence - American Appraisal's fee is based upon its estimate of
professional time to complete the work according to American Appraisal's understanding of
Client's requirements and in no way is contingent upon the outcome of its conclusions of value.
D. Invoicing Schedule - American Appraisal will invoice City for professional services rendered,
including expenses. Invoices are payable by City upon receipt and will be issued as the
engagement progresses as follows:
• 30% - Upon commencement of field investigation
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American Appraisal Associates
Balance - Progress billing as time and expense) is incurred
For your convenience, we are providing our remittance address and wire transfer instructions:
Remittance Address
American Appraisal Associates, Inc.
Bin 391
Milwaukee, WI 53288 -0391
Wire Transfer Instructions
Bank Name /Address:
Routing Number:
For the Credit to the Account of:
M&I Bank
770 North Water Street
Milwaukee, WI 53202
075000051
American Appraisal Associates, Inc.
Account Number - 0024274888
E. Unpaid Invoices - We reserve 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 outstanding for more than 30 days.
F. Complete Agreement - This Agreement, and any attachments or documents incorporated
herein, constitute the complete and total agreement between the two parties, and shall supersede
any preexisting or contemporaneously drafted agreements for services. In the event that you
issue a purchase order to us covering this engagement it is agreed that such purchase order is
issued for purposes of authorization and your internal use only, and none of its terms and
conditions shall modify the terms and conditions of this letter- and /or related documentation, or
affect either party's responsibility, to the other pasty as defined -in this letter. Should American
Appraisal incur additional costs as a result of the (Client)'s failure to pay invoices in accordance
with the terms stated herein, the (Client) 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 (Chent)'s failure to pay on a timely basis.
ENVIRONMENTAL POLICY
American Appraisal will make no investigation of, not assume any responsibility for, the existence or
impact of any hazardous substance, which may or may not be present on the property, in the
development. of American Appraisal's conclusion. If in the course of American Appraisal's
investigation, it is informed of or observe any hazardous substance.;problems with the property,
American Appraisal will note it in its report.
GENERAL SERVICE CONDITIONS
Agreement — The Contract governing this engagement including these General Service Conditions
represents the entire agreement between American Appraisal and-the Client. It supersedes any prior
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American Appraisal Associates
oral or written agreement and may not be altered except by the. mutual written agreement of all
parties thereto.
Assignment — Neither party may assign, transfer, or delegate any of the rights or obligations
hereunder without the prior written consent of the other party; unless such assignment is based
upon the lawful transfer to a successor in interest of all or substantially all of the party's assets or
business interests.
Client of Record -- Only the signed Client(s) of Record may rely on the results of American
Appraisal's work. No third party shall have the reliance or contractual rights of American Appraisal's
Chent(s) of Record without American Appraisal's prior written consent. No party should rely on the
results of American Appraisal's work as a substitute for its own due diligence.
Communication — Electronic media including voice -mail, e -mail, and faxes are acceptable vehicles
to communicate all materials unless such communication forms are expressly prohibited in the
Contract. Client shall not assume or deem the Client Service Team assigned by American Appraisal
to any work contemplated by the Contract to have knowledge of information provided to others not
part of that team.
Contingent Fees — American Appraisal's compensation is not contingent in any way upon its
opinions or conclusions or upon any subsequent event directly related to those opinions or
conclusions. Client shall pay American Appraisal's invoices in accordance 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 or use it for any purpose whatsoever other than
Client's engagement, provided that in the event that American Appraisal is legally compelled to
disclose such information, American Appraisal shall provide Client with prompt written notice so
that Client may seek a protective remedy, if available. American Appraisal shall have the right to
provide access to work files as required to comply with any quality or compliance audits
administered by any necessary accreditation or standards orgam" ations`with which its employees are
associated. Any such access shall continue to be subject to the same confidence by both American
Appraisal and the applicable organization. Information shall not be treated as confidential if: (i) it is
now or later available to the public, (ii) at the time of disclosure to American Appraisal, the
information was already in its possession, or (iii) the information was obtained from a third party
under no obligation of confidentiality to Client.
Unless mandated by applicable laws or governmental regulations, Client shall not disclose any part
of American Appraisal's work product, its confidential materials, or its role in the engagement to
anyone not stipulated in the Contract, without the prior written consent of American Appraisal.
American Appraisal shall have the right to include Client's name in American Appraisal's client list.
Force Majeure — Neither the Client nor American Appraisal shall be liable for delays or for failures
to perform according to the terms of the Contract due to circumstances that are beyond their
individual control_
Governing Law, Jurisdiction and Venue —
State of Wisconsin within the jurisdiction o f
Wisconsin, having subject matter jurisdiction.
City of South Miami
This Contract shall. be governed by the law of the
any state or federal - .court located in Milwaukee,
September 11, 2006
2505 -06 -034
American Appraisal Associates
Indemnification — Client shall indemnify and hold harmless American Appraisal against and from
any and all losses, claims, actions, damages, expenses or liabilities, including reasonable attorneys'
fees, to which American Appraisal may become subject in connection with this engagement, except
to the extent finally judicially determined to have resulted from the negligence or intentional
misconduct of American Appraisal. Client's obligation for indemnification and reimbursement shall
extend to any controlling person 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 engagement, except to the extent determined to have resulted from
the negligence or intentional misconduct of American Appraisal.
American Appraisal shall indemnify and hold harmless Client against and from any and all losses,
claims, or expenses for bodily injury or property damage, in proportionate part to that which is
caused by American Appraisal personnel or representatives during the performance of the
engagement, except to the extent of Client's negligence. While on Client's premises, the personnel
assigned by American Appraisal to any work contemplated by the Contract shall comply with all
posted safety instructions or safety procedures requested by Client...
Independent Contractor — American Appraisal and Client shall be independent contractors with
respect to each other. American Appraisal reserves the 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. -
Reliance on Information Provided by Client — American Appraisal is entitled to rely without
independent verification on the accuracy and completeness of all of the information provided by
Client or its advisors.
Retention — Unless stipulated to the contrary in the Contract or' 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
least seven years. During this retention period, Client shall have access to these documents to assist
it in completing the specific use or uses stated in the Contract, subject only to reasonable
notification.
Scope of the Work — American Appraisal shall be obligated only for services specified in the
Contract, and only for changes to the scope of those services that are set forth in any subsequent
written agreement. As a result, the scope of the work does not include unrelated services or the
responsibility to update any of the work after its completion. Further, American Appraisal reserves
the right to decline to perform any additional services, if American Appraisal believes such services
would create an actual or perceived conflict of interests, or would be illegal or in violation of
applicable regulations or professional standards.
Standards of Performance -- American Appraisal shall perform the engagement in accordance with
applicable professional standards. However, professional services usually involve judgments made in
an uncertain environment and based on an analysis of data that may, be unverified or subject to
change over time. Client and other parties to whom Client provides access to the results of
City of South Miami 12 September 11, 2006
2505 -06 -034
American Appraisal Associates
American Appraisal's work shall evaluate the performance of American Appraisal based on the
specifications of the Contract as well as on the applicable professional standards.
Testimony — American Appraisal's services do not include giving testimony or participating in or
attending court or any other legal or regulatory hearing or ingiiiq unless provided for in the
Contract or in a subsequent written agreement.
City of South Miami 13 September 11, 2006
2505 -06 -034
American Appraisat Associates
AUTHORIZATION
This Agreement is provided in duplicate; if it correctly reflects the City's understanding of
American Appraisal's. agreement, please confirm such by signing and returning one copy. Client
hereby affirms that its stated purpose is to use the report created by American Appraisal for
financial reporting and property control purposes only.
Please note, we will. be unable to deliver any conclusions, verbal or written, until we are in receipt of
this acknowledgment. To avoid any delays, please fax the signed Agreement in it's entirety, to :vfs.
Shicann: Phillips at 404 -264 -9069. Thereafter, please forward the original to her at: American
Appraisal Associates, Inc., 2839 Paces Ferty Road SE, Suite 400, Atlanta, GA 30339
If you have any additional questions or concerns, please do not hesitate to contact me at 704 -439-
2513 or via e-mail at lflemzning @american- appraisal.coin. We look forward to working with a valued.
client once again.
Respectfully submitted,
t
Lori .Flemming
Director
LCF /sp
Client. of Record:
Signature:
Name (typed /printed)
Title:
Date:
E- il�fal:
City oU Qm Miami _
Primary Service
Updated property record of buildings /building improvements, moveable equipment, land,
land improvements and infrastiucture at a $500 threshold
Insurable Values Study (buildings, contents, land improvements)
V---"Electronic Data File
C9, �0
City of South. Miami: 14 August 10, 2006
1505 -06 -034
American Appraisal Associates
ATTACHMENT A
TAG ORDER FORM
1275 Bloomfield Avenue #3-54
NrCode. Fairfield, NJ 07004
Phone: 800 - 524 -0599, ext. 31, Fax 973- 575 -4718
PAR CODE SYMBOLOGY INC email: krys@parcode.com
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R j��jL/,Gi�-;T i:7EF�
to place an order, email to Krystyna Olsiewicz at icrysQparcocie.coin or fax to b73- 575 -47'f 8.
Date: F Client PO M
,.... ........
Qe -
Ordered by: :American p
Phone:
Appraisal Use Con #tact #: t
Client Name:
Wording to appear on tag:
Line one:
Line two.,
Number of -rags: Starting
Number of digits: (standard 5 or 6) Ending #:
Date Needed: Time Needed:
1Yexw-:
Item #: LT2010SPD04 x 2" laminated polyester labels
e _...
Note: Minimum order is 3,000 tags
Qty Price City Ordered Total
3000 -4999 $0.08 x -
5000- 9999 $0.065 x W
10000- 19999 $0.06 x
20000 & up $0.06 x
If you have received a cote from Par Code on another item # with different pricing, enter here:
nem r� Price Qty
Freight Charges: _
GRAND TOTAL: -
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Address
city Slate ZIP
Phone
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Attention
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... -.._.-
Company--_ ......_.._.._._..__........_.__
Address
City State ZIP
Phone
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Referral by: American Appraisal
American Appraisal Associates
ATTACHMENT B
CITY OF SOUTH MIAMI PROPERTY SCHEDULE
AUG -07 -2005 12:34. PM BOOMTOWN 7044390384
South iam Property List
1. 6008 SW 66th Street (1,625 Square Feet)
2. 6016 SW 66th Street . (1,625 Square Feet)
3.
6411 SW 59th Court
(6,050 Square -Feet)
4.
5928 SW 66th Street
(7,150 Square Feet)
5.
5825 SW 68th Street
(6,720 Square Feet)
6.
6090 SW 63rd Street
(2,250 Square Feet)
7,
6041 SW 63rd Street
(4,773 Square Feet)
8.
6317.19 SW 59th Place
(4,850 Square-Feet)
S.
5978 SW 64th Street
(5,978 Square Feet)
10.
6401 SW 59th Place
(2,000 Square Feet)
11.
6400 SW 59th Place
(3,107 Square Feet)
12.
5944 SW 64th Street
(5,944 Square Feet)
13,
6065 SW 64 Terrace
(4,000 Square Feet)
P. 02