HomeMy WebLinkAboutReso 2007-1129
RESOLUTION NO. 2007---1l.1:....9
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF SUNNY ISLES BEACH, FLORIDA, APPROVING A
CONSULTANT AGREEMENT WITH AMERICAN APPRAISAL
ASSOCIATES, INC., IN THE AMOUNT NOT TO EXCEED
"
THIRTEEN THOUSAND TWO HUNDRED SEVENTY-FIVE
DOLLARS ($13,275.00), ATTACHED HERETO AS EXHIBIT "A",
TO DEVELOP A COMPREHENSIVE REPORT COVERING THE
CAPITAL ASSETS OF THE CITY AND TO ASSIST IN MEETING
THE REPORTING REQUIREMENTS OF THE
,
GOVERNMENTAL ACCOUNTING STANDARDS BOARD'S
(GASB) STATEMENT NO. 34 AND INSURANCE PLACEMENT;
AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT; AUTHORIZING THE CITY MANAGER TO DO
\
ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF
THE AGREEMENT; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Sunny Isles Beach is in need of a professional valuation
consultant to develop a comprehensive report covering the capital assets of the City and to assist
the City in meeting the reporting requirements of the Governmental Accounting Standards
Boards' (GASB) Statement No. 34 and insurance placement; and
WHEREAS, in conjunction with that effort the City wishes to retain American Appraisal
Associates, Inc., in an amount not to exceed Thirteen Thousand Two Hundred Seventy-Five
Dollars ($13,275.00), attached hereto as Exhibit "A", to perform these services; and
WHEREAS, American Appraisal Associates, Inc. has expressed that it has expertise to
perform these services, subject to the terms and conditions contained in the Consultant
Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Consultant Agreement. The Consultant Agreement with American
Appraisal Associates, Inc., to develop a comprehensive report covering the capital assets of the
City and to assist the City in meeting the reporting requirements of the Governmental
Accounting Standards Boards' (GASB) Statement No. 34 and insurance placement, in an amount
not to exceed $13,275.00, attached hereto as Exhibit "A", be and the same, is hereby approved.
Section 2. Authorization of Mayor. The Mayor is hereby authorized to execute said
Agreement.
R2007 - American Appraisal Associates, Inc.
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Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all
things necessary to effectuate the terms of the Agreement.
Section 4.
Effective Date. This Resolution will become effective upon adoption.
PASSED AND ADOPTED this 19th day of July 2007.
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Jane A.,Hm<?s~.GMC, CIty Clerk
Moved by:
Seconded by:
Vote: 5-0
Mayor Ede1cup
Vice Mayor Thaler
Commissioner Brezin
Commissioner Goodman
Commissioner Iglesias
~(Yes)
V1Yes)
~Yes)
~Yes)
~(Yes)
R2007- American Appraisal Associates, Inc.
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Co~,ot\Q.y GCD~WvIt1J
_(No)
_(No)
_(No)
_(No)
_(No)
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CITY OF SUNNY ISLES BEACH
AMERICAN APPRAISAL ASSOCIATES, INC. CONSULTANT AGREEMENT
CONTRACT NO: C0607-084
THIS CONTRACTUAL AGREEMENT (hereinafter referred to as the "Agreement")
is made in triplicate, this ,q~ay of TlJ\~ ' 200.:1, by and between the CITY OF
SUNNY ISLES BEACH, Florida, (hereina er referred to as "City"), and AMERICAN
APPRAISAL ASSOCIATES, INC., (hereinafter referred to as "Consultant") whose Federal
I.D. # is
RECIT ALS
WHEREAS, the City is in need of a professional valuation consultant to develop a
comprehensive report covering the capital assets of the City and to assist the City in meeting the
reporting requirements of the Governmental Accounting Standards Board's (GASB) Statement
No. 34 and insurance placement, ("Services"), as more fully described in Attachment "A"; and
WHEREAS, the Consultant represents that it has expertise to perform these Services;
and
WHEREAS, the City desires to retain Consultant to perform these Services in a total
amount not to exceed Thirteen Thousand Two Hundred and Seventy-Five Dollars ($13, 275.00).
NOW THEREFORE, in consideration of the foregoing and for the mutual covenants,
representations and warranties and other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties agree as follows:
I. RECITALS. The Recitals set forth above are hereby incorporated into this Agreement
and made a part hereof for reference.
2. CONSULTING SERVICES. Consultant shall provide to the City a detailed capital asset
record, develop a project work plan, conduct an inventory of assets, and prepare final and
status reports, as more particularly described in Attachment "A" attached hereto and made a
part hereof.
3. TERM. Subject to the provisions relating to the termination of this Agreement as set forth
in Paragraph 8 hereunder, the term of this Agreement shall begin upon the execution of this
Agreement and shall end upon the completion of Services described in Attachment "A", and
may be extended as necessary, in writing by the parties hereto.
4. COMPENSATION. Payment to Consultant for all charges under this Agreement shall
be in accordance with this Agreement and a schedule of charges reflected in Attachment "A"
in a total amount not to exceed Thirteen Thousand Two Hundred and Seventy-Five Dollars
($13,275.00). Thirty percent (30%) of this total amount, Three Thousand Nine Hundred and
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C0607 -084 American Appraisal Associates, Inc. Consultant Agreement
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Eighty- Two Dollars and Fifty Cents ($3,982.50) is payable to Consultant upon
commencement of Consultant's field investigation. The remaining Seventy percent (70%) of
the total amount incurred shall be submitted as incurred by the Consultant as invoices on a
monthly basis within ten (10) days following the end of each calendar month. City shall pay
Consultant only for Services actually performed. The Consultant shall make no other
charges to the City for supplies, labor, taxes, licenses, permits, overhead or any other
expenses or costs unless any such expense or cost is incurred by Consultant with the prior
written approval of the City. If the City disputes any charges on the invoices, it may make
payment of the uncontested amounts and withhold payment on the contested amounts until
they are resolved by agreement with Consultant.
5.
INDEPENDENT CONTRACTOR RELATIONSHIP. The Consultant is an independent
contractor and shall be treated as such for all purposes. Nothing contained in this Agreement
or any action of the parties shall be construed to constitute or to render the Consultant an
employee, partner, agent, shareholder, officer or in any other capacity other than as an
independent contractor other than those obligations which have been or shall have been
undertaken by the City, Consultant shall be responsible for any and all of its own expenses in btCtf-t dA...
performing its duties as contemplated under this Agreementt The City shall not be ~ r w\t.e.-
responsible for any expense incurred by the Consultant. The City shall have no duty to proIJitl.J J l\A..
withhold any Federal income taxes or pay Social Security services and that such obligations a.\to.chlMtw\- A.
shall be that of the Consultant, other than those set forth in this Agreement. Consultant shall Irs
furnish its own transportation, office and other supplies as it determines necessary in carrying
out its duties under this Agreement.
6.
r(.~W'-ts 0 r c>+zu" WCN'l::.-
OWNERSHIP OF DOCUMENTS AND EQUIPMENT. All documcftt~ prepared by ~r~.duc~101t
the Consultant pursuant to this Agreement and related Services to this Agreement are ;d\Jtvo.. ~.
intended and represented for the ownership of the City only. Any other use by Consultant or
other parties shall be approved in writing by the City. If requested, Consultant shall deliver
the documents to the City within fifteen (15) calendar days.
INDEMNIFICATION. Consultant agrees to indemnify and hold harmless, the City,
its officers, agents, and employees from, and against, any and all claims, actions, liabilities,
losses and expenses including, but not limited to, attorney's fees for personal, economic or h-tJ...e.L)<kt
bodily injury, wrongful death, loss of or damage to property, at law or in equity,j'Which may co..u.'i.ed ~
frfis@ or may be allcgcd to havc riscn from the negligent acts, errors, omissions or other ItS.
wrongful conduct of the Consultant, agents or other personal entity acting under Consultant's
control in connection with the Consultant's performance of Services pursuant to that
Agreement and to that extent the Consultant shall pay such claims and losses and shall pay
all such costs and judgments which may issue from any lawsuit arising from such claims and
losses including wrongful termination or allegations of discrimination or harassment, and
shall]3ay- all costs and attorneys' fees expended by the City in defense of such claims and
~ ro Q'("h.CM.A.~ losses including appeals), The parties agree that ten percent (10%) of the total compensation
~~U Alrlc~ is a specific consideration from the City to the COI1sultant for this indemnity.
{h-ikW{ to ~Ikti v-.u.t.:~ ex- 0,UbJ wUs~r ~ A. Mta.1 ~~j~t:M.,:t I~. tl ~r+- o+- ('l.e.~ .
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C0607-084 American Appraisal Associates, Inc. Consultant Agreement f6 .
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
8. TERMINATION.
A. If, through any cause within reasonable control, the Consultant shall fail to fulfill
in a timely manner or otherwise violate any of the covenants, agreements or
stipulations material to this Agreement, the City shall have the right to terminate
the Services then remaining to be performed. Prior to the exercise of its option to
terminate for cause, the City shall notify the Consultant of its violation of the
particular terms of the Agreement and grant Consultant ten (10) days to cure such
default. If the default remains uncured after ten (10) days the City may terminate
this Agreement.
(i.) In the event of termination, all finished and unfinished documents, data and
other work product prepared by Consultant (and sub consultant(s)) shall be
delivered to the City and the City shall compensate the Consultant for all
Services satisfactorily performed prior to the date of termination, as provided
in Paragraph 4 herein.
(ii.) Nothwithstanding the foregoing, the Consultant shall not be relieved of
liability to the City for damages sustained by it by virtue of a breach of the
Agreement by Consultant and the City may reasonably withhold payment to
Consultant for the purposes of set-off until such time as the exact amount of
damages due the City from the Consultant is determined.
B.
Termination for Convenience of City. The City may, for its convenience and
without cause terminate the Services then remaining to be performed at any time
by giving Consultant ten (10) days written notice. The terms of Paragraphs A(i)
and A(ii) shall be applicable hereunder.
C. Termination for Insolvency. The City also reserves the right to terminate the
remaining Services to be performed in the event the Consultant is placed either in
voluntary or involuntary bankruptcy or makes any assignment for the benefit of
creditors.
9. ARBITRATION. It is the intention of the parties that whenever possible, if a dispute or
controversy arises hereunder then such dispute or controversy shall be settled by arbitration
in accordance with the procedures, rules and regulations of the American Arbitration
Association. The decision rendered by the Arbitrator shall be final and binding upon the
parties and judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. Arbitration shall be held in Miami-Dade County, Florida. All costs of
arbitration and attorneys' fees incurred by the parties shall be paid by the non-prevailing
party or, if neither party prevails on the whole, each party shall be responsible for a portion
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C0607-084 American Appraisal Associates, Inc. Consultant Agreement
City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
of the costs of arbitration and their respective attorneys' fees as may be determined by the
court on confirmation.
I O. WAIVER OF RIGHT TO JURY TRIAL. Each of the parties hereto hereby knowingly,
voluntarily and intentionally, waive the right which any may have to a jury trial in respect of
any action, proceeding, litigation or counterclaim based hereon or arising out of, under, on or
in connection with this agreement or any course of conduct, course of dealing, statements
(whether verbal or written) or actions of either of party.
II. CONFIDENTIAL INFORMATION. The Consultant shall not, either during the tenn of
this Agreement or any time for a period of TEN (10) years subsequent to that date upon
which the Consultant shall leave the employment of the City for any reason whatsoever,
disclose .to any person or ~ntity, ot?er tha.n in the ?ischa:ge of t?e d~t~es of the Consul.tant # t- ~
under thIS Agreement, any mformatIOn whIch the CIty deSIgnates m wntmg as "confidentlalf n1~<,d I.H...
As a violation by the Consultant of the provisions of this Section could cause irreparable \~ . (j
injury to the City and there is no adequate remedy at law for such violation, the City shall ~ '''or
have the right, in addition to any other remedies available to it at law or in equity, to enjoin oW
the Consultant in a court of equity for violating such provisions.
12. NOTICES. All notices and communications hereunder shall be in writing and shall be
deemed given when sent postage prepaid by registered or certified mail, return receipt
requested and, if intended for City to A. John Szerlag, City Manager with a copy to Hans
Ottinot, City Attorney, at City of Sunny Isles Beach, 18070 Collins Avenue, Sunny Isles
Beach, Florida 33160, and if intended for the Consultant, shall be addressed to Lori
Flemming, Director, American Appraisal Associates, Inc., 8833 Westmoreland Lake Drive,
Cornelius, North Carolina, 33780, Telephone (704) 439-2515. Mobile (704) 953-9780.
13. GOVERNING LAW. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida. Venue shall be in Miami-Dade County, Florida.
14. AUDIT. The Consultant shall make available to the City or its representative all required
financial records associated with the Agreement for a period of THREE (3) years.
15. NON-DISCRIMINATION. The Consultant agrees to comply with all local and state civil
rights ordinances and with Title VI of the Civil Rights Act of 1984 as amended, Title VIII of
the Civil Rights Act of 1968 as amended, Title 1 of the Housing and Community
Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the
Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive
Order 11063, and with Executive Order 11248 as amended by Executive Orders 11375 and
12086.
The Consultant will not discriminate against any employee or applicant for employment
because of race, color, creed, religion, ancestry, national origin, sex, disability or other
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C0607-084 American Appraisal Associates, Inc. Consultant Agreement
City of Sunny Isles Beach
] 8070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
handicap, age, marital/familial status, or status with regard to public assistance. The
Consultant will take affirmative action to insure that all employment practices are free from
such discrimination. Such employment practices include but are not limited to the following:
hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff,
termination, rates of payor other forms of compensation, and selection for training, including
apprenticeship. The Consultant agrees to post in conspicuous places, available to employees
and applicants for employment, notices to be provided by the City setting forth the provisions
of this non-discrimination clause.
The Consultant agrees to comply with any Federal regulations issued pursuant to compliance
with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 708), which prohibits
discrimination against the handicapped in any Federally assisted program.
16. CONFLICT OF INTEREST: The Consultant agrees to adhere to and be governed by the
Miami-Dade County Conflict of Interest Ordinance Section 2-11.1, as amended; and by the
City of Sunny Isles Beach Ordinance No. 99-82, which are incorporated by reference herein
as if fully set forth herein, in connection with the Agreement conditions hereunder.
The Consultant covenants that it presently has no interest and shall not acquire any interest,
direct or indirectly which should conflict in any manner or degree with the perfonnance of
the Services. The Consultant further covenants that in the performance of this Agreement, no
person having any such interest shall knowingly be employed by the Consultant. No member
of, or delegate to the Congress of the United States shall be admitted to any share or part of
this Agreement or to any benefits arising therefrom.
17. CONFLICTING PROVISIONS. The terms and conditions in this Agreement supersede
any other conflicting provisions that are contained in any other document.
18. ENTIRE AGREEMENT. This Agreement and Attachment "A", which is expressly
incorporated herein by reference, contain the entire agreement of the parties, and may be
amended, waived, changed, modified, extended or rescinded only by a writing signed by the
party against whom any such amendment, waiver, change, modification, extension and/or
rescission is sought.
(The remainder of this page has been intentionally left blank.)
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C0607 -084 American Appraisal Associates, Inc. Consultant Agreement
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in triplicate
on the day and year first written above,
WITNESSES:
AMERICAN APPRAISAL
ASSOCIA ' , IN
BY:
(JJ ~ Chm QJ~~ouill1
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'-: ;,:J'.lne A,'fIihes, C~&C, City Clerk
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FORM AND
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C0607-084 American Appraisal Associates, Inc. Consultant Agreement
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American Appraisal Associates(~)
IMPLEMENTATION OF GASB 34 CAPITAL
ASSET REpORTING FOR:
CITY OF SUNNY ISLES BEACH
May 18, 2007
Submitted by:
Lori Flemming
Director
American Appraisal Associates, Inc.
8833 Westmoreland Lake Drive
Cornelius, North Carolina 33780
Phone: (704) 439-2515
Fax: (704) 439-0384
Mobile: (704) 953-9780
Email address:lflemming@american-appraisal.com
, '\ Attachment" A"
American Appraisal Associates
United StMes
Intern<1tiotli11
American Appraisal Associates:!';
8833 Westmoreland Lake Drive
Cornelius. Nortn Carolina ;>13031
Teiepllone (704) 439.251~,
Mobile (704) 953.9780
Fax (704) 439.0384
www.arnencan-appralsal.com
Founded in 1896
May 18, 2007
Mr, Doug Haag
Assistant City Manager - Finance
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Re: Comprehensive Proposal for Implementing GASB 34 Capital Asset Reporting and
Insurance Placement
Dear Mr. Haag:
American Appraisal Associates, Inc. ("American Appraisal") is pleased to provide this proposal for
professional valuation consulting services, The purpose of our work will be to develop a
comprehensive report covering the capital assets of the City of Sunny Isles Beach (the "City") to
assist you in meeting the reporting requirements of the Governmental Accounting Standards
Board's (GASB) Statement No, 34 and insurance placement. .
BACKGROUND AND PURPOSE
On June 30, 1999, the Governmental Accounting Standards Board (GASB) issued Statement No,
34, Basict''''inamial Statement.r - and Management'.r DiJm.r.rion and /lna!ysz:r - for State and LL}(al Govemments,
The statement establishes new financial reporting standards for state and local governments
including states, counties, cities, towns, villages and special purpose governments such as school
districts and public utilities,
American Appraisal will develop a detailed capital asset record to assist the City's need to: (a) achieve
property accountability and stewardship of assets, (b) obtain a valuation of assets in compliance with
the requirements of GAAP, GASB 34, and GAAFR, (c) provide data to assist you in monitOrIng
assets, and (d) insurance placement.
City of Sunny Isles Beach
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May 18,2007
25115-iJ7.1127
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American Appraisal Associates
THE CITY'S RESPONSIBILITIES
1, Provide a list of all property to be included in the assignment,
along with physical location/street address, on-site property
contact/ department liaison, and telephone number.
2, Identify a representative of the City to serve as the primary
on-site contact and liaison between the city and American
Appraisal.
3, Provide copies of any prior fixed asset listings, including
schedules of infrastructure assets, in hard copy and electronic
media,
4, Provide complete and open access to all designated areas
including security escorts for security-sensitive areas,
AMERICAN ApPRAISAL'S RESPONSIBILITIES
1, Develop a project work plan for approval by the City prior to
commencement of our field investigations.
2, Conduct an inventory of the assets,
3, Prepare final reports.
4. Provide status reports as to our progress, or challenges,
incurred throughout the study from start to delivery,
QUALIFICATIONS AND EXPERIENCE
American Appraisal, founded in 1896, 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,
nor any of its subsidiaries, performs accounting or bookkeeping related services, It is our
commitment to maintain total independence and protect our clients from any concerns of a
"conflict of in teres t" with their auditors,
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,
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.
City of Sunny Isles Beach
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May 18,2007
25115.117.1127
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PROJECT 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:
Gary M, Soucek
Assistant Vice President/Managing Principal
Contract Manager:
Lori Flemming
Director, Property j\ppraisal Services Group
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
The capital assets to be included in this engagement are located in three (3) City-owned facility sites
and structures, as reported by the City. The property includes the City Hall, Public Works Building
and the Library, The facilities include Capital Assets, which comprise typical municipal occupancies,
General assets included in the development of the comprehensive fixed asset model include:
~ Land
~ Land Improvements
~ Buildings and Building Improvements
~ Moveable Equipment
~ Infrastructure
Excluded from the services provided by this proposal are:
~ Assets Below the $1000 Capitalization Threshold
~ Leased Equipment - Operating
~ Assets in or at locations that are considered as not easily accessible or identified locations
within the proposal
~ Personal Property of Employees or Others
~ Vehicles
~ Supplies/Expendable Inventories
~ Historical Treasures
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,
City of Sunny Isles Beach
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May 18, 2007
2505-07 .027
Amencan Appraisal Associates
If desired, library books, radios, computer software, fine arts and historical treasures, and licensed
vehicles ("Special Assets") can also be incorporated into the record, based on information supplied
by the City, This information must be provided to A.merican Appraisal during the initial field
inspection to be included in the reports, We will not inspect, tag or value any of the Special Assets
identified by the City,
ENGAGEMENT METHODOLOGY
Land
Land will be included based on the data provided to us by the City, As a part of this engagement, we
will conduct a cursory review of the data.
If the data is not available or sufficient, for an additional fee of $125 per parcel, American Appraisal
will research City records to identify the City's owned land assets. In gathering this data, we will:
.
Research the County Assessor's databases and files to identify land owned by
the City;
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Utilize data gathered from the County Assessor's office to research deed
information;
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Compile a data report indicating, as available, the following items:
· Parcel Number
· Date of Sale
· Parcel Size
· Estimated Acquisition Price
· Street Address when available
· Other pertinent data such as:
o Any reference to existing improvements
o Any reference to other official records referred to 10 the deed, which may
provide additional information,
Upon completion of the identification process we will meet with you and your external auditors to
discuss American Appraisal's findings, At that time, we will be prepared to discuss the materiality of
developing the historical costs for parcels for which acquisition costs were unavailable,
Land Improvements
While inspecting site structures, we will also conduct an inventory of site / land improvements and
miscellaneous structures. Pertinent data regarding assets in these categories, i,e, paving, lighting,
fencing, park improvements, below grade data communication systems, etc, will be recorded to
permit assignment of value.
City of Sunny Isles Beach
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May 18, 2007
25115.117 .1127
American Appraisal AssocIates
Buildings
The appraisal will include an inspection of all City-owned buildings that are included on the supplied
Schedule of Properties to be appraised, The inspection will include a tour of the premises, the
recognition and recording of various components of construction, measuring and photographing the
buildings, preparing an inventory of the fixed eguipment, and preparing a map of the site, Site maps
will be reguested to assist the appraisal team in determining the identification and location of
buildings.
Upon the completion of the building inspection, the buildings will be compared to your current
property records to assure the consistency in data elements such as date and cost of original
construction, as well as any significant renovations and additions or improvements to the designated
buildings, Individual buildings where this information is not provided \vill be estimated utilizing
accepted appraisal procedures,
The methodologies to be utilized to assign a cost and depreciation for each building will be Direct
and Normal Costing, as defined within the costing methodology section of this proposal.
Moveable Equipment
A detailed inventory of moveable eguipment will include a physical inspection of all owned
eguipment with a unit cost in excess of the $1000 capitalization policy, Floor plans will be reguired
to assist the inventory team in assuring that no areas are missed, Location and department will
group assets less than $1000 for insurance purposes,
American Appraisal can provide plastic bar coded asset tags or utilize tags that you supply, Our tags
will be Plastic (polyester) labels, Code 39, and the approximate size will be 1" x 2", We will plan to
apply these tags to each capital asset and record the tag number as part of the asset's data record,
Should you decide that American Appraisal will provide the tags, you will be responsible for the
extra cost.
It is important to note that we will not be performing a detailed reconciliation to the City's existing
fixed asset ledger.
Infras tructure
American Appraisal will reguire access to certain information currently maintained by the City
regarding infrastructure assets to be appraised. This information will include:
Asset Classes (roads, bridges, lighting, ete.)
Quantitative (lane miles, sguare feet, etc,)
Description of the Asset
Location Information
Historical Cost
Date of Acguisition
The designated infrastructure assets that will be included are as follows:
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.
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Roads or Highways
Alleys
Drainage systems
Parking Meters
Canals/Waterways
City of Sunny Isles Beach
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May 18, 2007
25115.117.1127
Amencan Appraisal Associates
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Seawalls
Traffic Lights
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American Appraisal will value the City's infrastructure, as identified above, American Appraisal will
require data from the City which may include maps, CADs, pavement management systems,
highway bid specifications and GIS system, as appropriate,
American Appraisal will assign dates of construction, depreciable lives and original cost estimates
consistent with the methodology promulgated in the Statement. American Appraisal will assign
current replacement values and apply reverse inflation indices to these values,
The application of "reverse inflation indices" adjusts the current Cost of Replacement estimates to
price levels that would have prevailed at the time of original construction or purchase, The sources
of the indices to be used will combine published research price trends for the various classes of
infrastructure property and data maintained in our files for the same purpose,
American Appraisal will exclude interest costs, cost overruns, overhead/profit charged by
contractors, and premiums paid for services performed, unless the city provides evidence of such
historical cost,
SPECIFIC DATA ELEMENTS/DEFINITIONS
In preparing the comprehensive fixed asset record of the City's assets, we will provide the following
items of data on each asset, as appropriate, The specific data elements to be captured are:
1. Asset Location - A system to identify the physical location of the appraised
property (site, floor, room, ete.),
2, Building Identification - Where used, existing numerical identifications will
remain; unidentified space will be numbered sequentially following the last
assigned number,
3. Department Number - Existing numbers will be utilized, When not
available, American Appraisal will identify those particular areas, Generally,
only one unit number will be applied to a particular space, The largest
department representation will be utilized,
4. Asset Number - A sequentially assigned asset number placed on controlled
property by the Fixed Asset System, This can be a bar 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, vehicles,
ete.
6, Asset Classification Code - A subdivision of property to further identify
assets, i,e. outdoor equipment, business machines, data processing
equipment, furniture, audiovisual equipment, books, food service equipment,
ete. This field may be used to include the City's commodity code.
City of Sunny Isles Beach
7
May 18, 2007
2505-117 .027
American Apprais.al AssoCIates.
7, Function Code - As provided, and applicable by the City,
8, Quantity - Unit-controlled (tagged) property will be recorded as one,
9. Asset Description - Manufacturer's name, model, generic nomenclature,
and serial number will be utilized for unit-controlled assets, For buildings, we
will describe the type of structure, size, square footage, and building materials
used as well as the fire, safety, and security apparatus/ systems in place,
COSTING METHODOLOGy/DEFINITIONS
1. 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,
2. Estimated 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,
3. Direct Costing - Additional research into the historical cost documented as
provided by the City in a readily available and useable
property records for the original construction,
betterments,
format, in the City's
improvements and
4. Normal Costing - Estimated cost based on the cost of reproduction new
indexed by a reciprocal factor of the price increase from the appraisal date to
the actual or estimated acquisition date,
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,
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 historical
lifing practice versus estimated actual lives will be discussed during the
planning meeting and an acceptable approach will be developed,
7, Accumulated Depreciation - \X!ill be based on the asset's cost, acquisition
date and the estimated useful life utilizing the straight-line basis of
depreciation, Useful lives will be based on information provided by the City
or industry standards,
8, Insurable Value - Cost of reproduction new (replacement cost) as of the
appraisal date will be used as a basis for insurable values for all controlled
property,
City of Sunny Isles Beach
8
" '\
.','"
May 18, 2007
25115-117.1127
American Appraisal Associates
9, Cost of Reproduction New - 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, In insurance industry terminology, cost of reproduction new,
as defined above, is synonymous with the insurance industry phrase,
"replacement cost."
DELIVERABLES
The City will receive a full complement of reports, one hard copy and a ,PDF file reflecting the
results of American Appraisal's investigation, to include:
1. A narrative for use by management a"1d outside auditors to assist the
City's efforts in meeting GASB 34 capital asset reporting requirements,
2, Certificate of Values,
3, Glossary of accounts and descriptive abbreviations used,
4, Customized appraisal reports (available at a nominal charge, upon request),
A. 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 ("USP AP"). 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, (Optional) Statement on Auditing Standards (SAS) No, 70 - The American Institute of Certified
Public Accountants (AICPA) Statement on Auditing Standards (S1\S) No, 70, Service
Organizations addresses audit procedures and reports for service organizations that provide
services to a user organization that are part of the user organization's financial information
system, In that context, SAS 70 is applied to organizations that provide financial information
system functions for processing transactions such as bank trust departments, application service
providers, and service bureaus, PricewaterhouseCoopers, LLP (P\V'C) has been retained to
perform an annual audit of American [\ppraisal's Electronic Property Record Asset Information
System (ePRAIS),
PWC has completed their audit of our ePRAIS system and issued their report on policies and
procedures placed in operation and tests of operating effectiveness for ePRAIS in accordance
with SAS 70. In particular, the SAS 70 report addresses our appraisal report production system
calculations for back trending, depreciation, accumulated depreciation, and report totals that are
integral to the preparation of our appraisal reports, It should be noted that the SAS 70 report is
applicable to processing transactions not to the performance of our appraisal procedures, The
SAS 70 report is available to our Clients and their independent auditors upon the receipt of their
written request,
City of Sunny Isles Beach
9
May 18, 2007
25115.117.1127
'-.j
American Appraisal Associates
C. Property Accounting Summary - The standard Property Accounting Summary Report displays
description of fields being summarized, original cost, accumulated depreciation, net book value,
annual depreciation, projected provision, by account.
D, Property Accounting Ledger Report - The Property Control Report will include all capital
assets with a unit cost in excess of the City's capitalization threshold of $1000 and the 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,
E, Insurance Summary - The standard Insurance Summary Report displays description of fields
being summarized, cost of reproduction new, and original cost values,
F. Insurance/Property Record Report - The standard Insurance/Property Record Report
displays asset tag number, class code, quantity, description, manufacturer's name, model number,
serial number, and cost of reproduction new, This information will be sorted and reported by
location,
TIMING
Upon receipt of your signed authorization, American Appraisal \vill work closely with the city
establish project start, fieldwork and report delivery schedules to meet your reporting requirements,
OPTIONAL SERVICES
DATA DISKETTE
If the City does not have a fixed asset accounting system, the capital asset data We can be
reformatted for a spreadsheet or database application (Excel, Lotus 123, Access, dR-\SE, FoxPro,
Paradox, etc.),
ANNUAL UPDATE SERVICE - PROPERTY RECORD OUTSOURCING
The City will provide American Appraisal with capital asset additions, retirements, and transfers
using hard-copy forms (with instructions), spreadsheet or database formats sent either through mail
on a diskette or by utilizing e-mail.
American Appraisal will provide the City with historical cost, current period depreciation and
accumulated depreciation of assets, by account for accounting purposes,
American Appraisal will provide an updated fixed asset sub ledger for the City's accounting and
financial reporting requirements,
American Appraisal will provide the following reports:
Property Accounting Reports
Property Accounting Summary
Capital Assets Detail
Retirements Report
Additions Report
Adjustments Report
Transfers Report
Insurance Reports
Insurance Summary Report
Insurance/Property Record Report
City of Sunny Isles Beach
10
May 18, 2007
2505.07 .027
American Appraisal Associates
Cost Roll-Forward
Depreciation Roll-Forward
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 time required to complete the
assignment. Based on American Appraisal's understanding of the project, fees are as follows
including expenses:
Primary Service
Capital Asset Appraisal of Buildings,Land, Land Improvements,
Infrastructure, Moveable Equipment and Bar Code Tagging
At the $1000 Capitalization threshold
$8,100.00
Optional Services
Bar Code Tags (3,000 tags)
Copy of Data on Diskette (Access, ASCII flat me, dBASE, Excel, Lotus)
Land Consulting/Valuation for GASB 34 Compliance
Property Record Outsourcing (Fiscal year 2007/2008)
$300
$500
$125 per parcel
$1 ,000
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 staff while executing the work.
B, Change in Scope / Additional Square Footage and or Building Count - American
Appraisal's fee is based upon the understanding that the City's assets are located in the buildings
set forth in City's Schedule of Properties to be Appraised, American Appraisal has been
provided with the gross square footage of the structures from City, which is the primary basis of
estimate for project fees. If the actual square footage area andlor building count vary from the
City-reported data, American Appraisal will notify the City immediately upon discovery. Upon
written authorization from the City to continue its appraisal of the additional square footage
andlor building count, 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 the
City's requirements and in no way is contingent upon the outcome of its conclusions of value,
D, Invoicing Schedule - American Appraisal will invoice you for professional services rendered
including expenses, Invoices are payable by the City upon receipt and will be issued as the
engagement progresses as follows:
· 30%
· Balance
Upon commencement of field investigation
Progress billings as time is incurred
City of Sunny Isles Beach
11
May 18, 2007
25(15.(17.1127
American Appraisal Associates
For your convenience, we are providing our remittance address and wire transfer instructions:
Remittance Address
American Appraisal Associates, Inc,
Bin 88391
Milwaukee, WI 53288-0391
Wire Transfer Instructions
Bank Name/Address:
M&I Bank
770 North Water Street
Milwaukee, WI 53202
Routing Number:
For the Credit to the Account of:
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 party as defined in this letter, Should American
Appraisal incur additional costs as a result of the 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,
ENVIRONMENTAL POLICY
American Appraisal \vill make no investigation of, nor assume any responsibility for, the existence or
impact of any hazardous substance, which mayor may not be present on the property, in the
development of American Appraisal's conclusion,
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
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.
City of Sunny Isles Beach
12
May 18,2007
25()5.()7.()27
-::
American Appraisal Associates
Client of Record - Only the signed Cliem(s) of Record may rely on the results of American
Appraisal's work. No third party shall have the reliance or contractual rights of .l\merican Appraisal's
Client(s) of Record without American Appraisal's prior written consent. No party should rely on the
results of American i\.ppraisal'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 sh;1U 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 organizations 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 (ill) 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 - This Contract shall be governed by the law of the
State of Wisconsin within the jurisdiction of any state or federal court located in Milwaukee,
Wisconsin, having subject matter jurisdiction,
Indemnification - Client shall indemnify and hold harmless American Appraisal against and from
any and all losses, claims, actions, damages, expenses or liabilities, including reasonable attorneys'
fees, to which American Appraisal may become subject in connection with this engagement, except
to the extent finally judicially determined to have resulted from the negligence or intentional
misconduct of American .Appraisal. Cliem'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
City of Sunny Isles Beach
13
May 18, 2007
2505.07.027
American Appraisal Associate,s
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 i\ppraisal.
.l\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
caused by American Appraisal personnel or representatives during the performance of the
engagement, except to the extent of Client's negligence, \Vhile 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 ftles, documents, work papers, and other results,
developed during the course of the engagement. Such materials will be retained for a period of at
least five 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 i\ppraisal 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
American Appraisal's work shall evaluate the performance of American Appraisal based on the
specifications of the Contract as well as on the applicable professional standards,
Testimony - American Appraisal's services do not include giving testimony or participating in or
attending court or any other legal or regulatory hearing or inquiry unless provided for in the
Contract or in a subsequent written agreement.
City of Sunny Isles Beach
14
May 18,2007
2505.07.027
American Appraisal Associates
AUTHORIZATION OF SERVICES
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, The City hereby
affirms that its stated purpose is to use the report created by American Appraisal for financial
reporting and property control purposes only and insurance placement.
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 its entirety, to Lori
Flemming at (704) 439-0384 after, please forward the original to her at: American Appraisal
Associates, Ine., 2839 Paces Ferry Road, Suite 400, Atlanta, Georgia 30339,
We look forward to the opportunity of serving the valuation needs of the City of Sunny Isles Beach
and assure you, if selected, that the work will receive our careful and continued attention,
Respectfully submitted,
~i~
Lori Flemming
Director, Property Appraisal Services Group
LF / sp
Client of Record:
Signature:
Name (typed/printed)
Title:
Date:
City of Sunny Isles Beach
E- Mail:
Phone:
Please initial below to include the services offered
Primary Service
Capital Asset Appraisal of Buildings, Land, Land Improvements, Infrastructure,
Moveable Equipment and Bar Code Tagging at the $1000 Capitalization Threshold
Optional Services
Bar Code Tags (3,000 tags)
Copy of Data on Diskette (Access, ASCII flat file, dBASE, Excel, Lotus)
Land Consulting /Valuation for GASB 34 Compliance
Property Record Outsourcing (Fiscal year 2U07/2008)
City of Sunny Isles Beach
15
May 18, 2007
2505.07 .027
American Appraisal Associates
City of Sunny Isles Beach
16
May 18,2007
2505.07 .027
Am.erican Appraisal Associates, Inc.
8833 Westmoreland Lake Drive, Cornelius, NC 28031
direct 704 439 2515/ mobile 704 953 9780
fax 704 439 0384
Leaclif1fj ! Thinkinq ! Performing
American
Appraisal
October 3, 2007
Mr. Doug Haag
Assistant City Manager/Finance
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
Dear Mr. Haag:
This letter is to confirm your authorization for American Appraisal to appraise twenty (20) additional
land parcels plus additional buildings (see Attachment A), as part of the authorized appraisal for
GASB 34 compliance and insurance placement.
Our fee to perform these services will be $4,000. All other terms and conditions outlined in the
original contract agreement dated July 19, 2007, shall remain in force. Please note we will be unable
to deliver any conclusions. verbal or written. until we are in receipt of this acknowledgment.
Mr. Haag, you will be in invoiced once the additional properties and land parcels appraisal are
completed. You may wish to fax the signed Agreement in its entirety, to me at (414) 225-1908.
...
Thereafter, please forward the original to my assistant, DeeAnn Rakovich, at American Appraisal,
411 East Wisconsin Avenue, Suite 1900, Milwaukee, Wisconsin 53202.
~, \
U'1~~
i e, 100
4,000
\ '2, too
Or',q,\'\((\ Co~-\m.ct A~l)Uh.+
t:..!ct ,tlOV\J <; E'v\iIO .f'
. ((.f\jIS~! eo"'1tTArt A~tJl.A~
Lori Flemming
Director, Fixed Asset Management and Insurance Solutions
LFjdar
;;~;t:~:ord Ci~;:~
Title: ~s; :s\s-to..'^-'\ C'1--) W\. a.V\.ct~eY
Phone: ~O:>. ,9~, tl/5
&.~~~ 7 Ii ~~Jo~~-I-
E-mail:
Date:
c.c. P\'.l.rO'\o.s',V\<j
c..l (. \-"'-
L(.q&-\
Valuation! Transaction Consult;n~l / neat Estate Advisory I Fixed Asset Management
ft
American
Appraisal
E'. h' -b" .'1 A
r ....., ,{'..' j: ,Jj .'
....'.'......"'.."'.X.. if.".'.. ....l. 1 I..:.:....t."...,... ; 1.1 !.'.' .:".
j ...q'/ '.1 J jt,) I lit'"
Property/Building Lists
Leading / Thinking / Performing
Exhibit A
~
American
Appraisal
Additional Land Parcels
PROPERTY ADDRESS
FOLIO
SALE AMOUNT
18050 Collins Ave 31-2211-005-0011
18070 Collins Ave 31-2211-005-0010
18080 Collins Ave 31-2211-005-0016 2,400,000
Golden Shores Ocean Blvd East 31-2202-009-0180
201191 Terrace 31-2202-009-0170 85,000
17425 Collins Ave 31-2211-004-0210 2,650,000
500 Sunny Isles Blvd 31-2214-007-0210 3,000,000
18115 N. Bay Rd. 31-2211-019-0010 1,000,000
17451 Collins Ave 31-2211-004-0170 2,850,000
19200 Collins Ave I I 31-2202-011-0040 19,645,606
Sunny Isles Tract - Land 31-2211-064-0010
17200 Collins Ave 31-2211-004-0070
Golden Shores Ocean 31-2202-009-0035
Ocean Blvd Ests 31-2202-007 -0060
Ocean Blvd Ests 31-2202-007-0010
Golden Shores Ocean Blvd 31-2202-006-0145
South Shore Ests 31-2211-001-0300
South Shore Ests 31-2211-001-0290
Collins Ave-Vacant Land 31-2214-008-0350 500,000
R K Marina - Land 31-2211-066-0045
Total 32,130,606
3 properties bought
together
2 properties bought
together
no appraisal yet
Additional Buildings
1) Tony Roma's
2) Alamo Building
3) Diesel Gas Pump and Tank
4) Unleaded Gas Pump and Tank
5) Public Works site beneath bridge (there's actually no buildings there - they store stuff in shipping
containers which cost $3000)
6) Pump Station
7) One more park (in addition to the original six)
Leading! Thinking / Performing
Exhibit A- Page 1
TO:
Via:
FROM:
DATE:
RE:
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3 113 Fax
(305) 947-2150 Building Department
(305) 947-5107 Fax
City Commission
Norman S. Edeleup, Mayor
Lewis .J. Thaler, Vice Mayor
Roslyn Brezin, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
A. John Szerlag, City Manager
Hans Ottinot, City Allorney
Jane A. Hines, City Clerk
MEMORANDUM
The Honorable City Commission
A. John Szerlag, City Manager
Douglas Haag, Assistant City Manager-Finance \)~
June 19,2007
AGREEMENT TO PERFORM FIXED ASSET INVENTORY SERVICES
RECOMMENDATION:
Approve the attached agreement and resolution with American Appraisal Associates to conduct a
fixed asset inventory for the City in accordance with generally accepted accounting principals.
Services and deliverables are to be provided as per the agreement for the not-to-exceed amount
of$15,000, which includes a small contingency.
In addition, we request a transfer of funds for this amount from General Fund Contingency
account 10-519-5990 to Finance Professional Services account 10-513-5315.
BACKGROUND:
Thanks to the outstanding performance of the Finance Department over the past 10 years, the
City of Sunny Isles Beach has received a 'clean' audit opinion from its auditors. The only
exception to that has been an accounting change required several years ago that required local
governments to establish and maintain a complete inventory of all fixed assets, including
infrastructure such as land, land improvements, rights-of-way, vehicles, equipment, drainage
systems, lighting systems, signage, streets & roads, utility lines, etc.
This requirements were issued by the Government Accounting Standards Board (GAS B) and
took effect for Sunny Isles Beach for the fiscal year beginning October 1, 2002. GASB is part of
the Financial Accounting Foundation, a not-for-profit organization that establishes accounting
rules and an independent organization. In June, 1999, GASB issued Statement 34, the most
significant change in the history of government financial reporting. Statement 34 covers the
basic financial statements, note disclosures, and the Management Discussion and Analysis (MD
& a). Local governments need to report capital assets with consideration of deprecation,
Page 2
including infrastructure assets and 'historical treasures'. This means that the City needs to report
in a complete, accurate and detailed manner to adequately account for and report their capital
asset activity.
The proposal from American Appraisal Associates (AAA) will allow the City to come into
compliance with GASB 34 as well as further improve our financial accountability through
improved accounting procedures. Compliance will be maintained on an ongoing basis by
utilizing the City's current financial software's fixed asset module. AAA will work closely with
all City departments, insurers and our auditors to assure that all financial records are properly
updated and maintained on an ongoing basis.
While the amount of our contract does not require formal competitive bids, we are nonetheless
proposing to 'piggyback' from a competitive bid award by the City of Cocoa, Florida. In
addition, please note that American Appraisal Associates has performed similar work for
hundreds of customers throughout the USA and parts of Florida. (see attached)
Page 3
Florida Public Entities Client List
City of Cocoa
City of Cocoa Beach
City of Margate
City of Miramar
City of Sarasota
City of Clearwater
Sarasota County
City of Oldsmar
City of Palmetto
City of South Miami
City of North Miami
City of Gulf Breeze
City of Miami
City of North Lauderdale
City of Pinellas Park
Hartline Transit Authority
City of Casselberry
City of Coral Gables
City of Hollywood
Greater Orlando Airport Authority
Florida League of Cities
City of Lake City
City of Plant City
City of Miami Gardens
City of Miami Springs
City of Rockledge
Village of Key Biscayne
County of Suwannee
City of Belleair Beach
City of Coral Springs
City of Plantation
Town of Davie
Florida International University
University of Miami
University of Florida - Gainesville
Rollins College
Archdiocese of Miami
Diocese of Orlando
Diocese of Palm Beach
Diocese of Venice
Diocese of St. Augustine
Diocese of Pensacola-Tallahassee
Page 4
National Municipal Client List
City of Santa Monica, CA
City of Beverly Hills, CA
City of Thousand Oaks, CA
City of Miami, FL
New Castle County, DE
San Bemandino County, CA
City of Branford, CT
City of Stamford, CT
City of Danbury, CT
City of Waukegan, IL
Town of Huntington, NY
Town of Islip, NY
Metropolitan Transit Authority, NY
City of Lenoir, NC
City of Lincolnton, NC
City of San Antonio, TX
City of Newport N ews, VA
Prince William County, VA
Clayton County, GA
Chicago Heights, IL
South Carolina Dept of Parks, Recreation and Tourism
City of Midlothian, IL
City of Norman, OK
City of Providence, RI
City of Denton, TX
City of El Paso, TX
City of Humble, TX
City of Milwaukee, WI
City of Brownsville, TX
City of Atlanta, GA
State of Hawaii Dept of Transportation
City of Puvallup, W A
City of Leawood, KS
Napa County, CA
City Commission
Norman S. Edelcup
Mayor
Lewis J. Thaler
Vice Mayor
Roslyn Brezin
Commissioner
Gerry Goodman
Commissioner
Danny Iglesias
Commissioner
A John Szerlag
City Manager
Hans Ottinot
City Attorney
Jane A. Hines
City Clerk
July 23, 2007
Lori Fleming, Director
Amer-ican---Appraisal-Asseeiates;-lnc.
8833 Westmoreland Lake Drive
Cornelius, North Carolina 33780
Re: Appraisal Consultant Agreement
Dear Ms. Fleming:
At its regular meeting of July 19, 2007, the Sunny Isles Beach City Commission
adopted Resolution No. 2007-1129, which approved a Consultant Agreement with
Appraisal Associates, Inc. for the development of a comprehensive report of the City's
capital assessments. Attached is a copy of the approving resolution and an original
Agreement for your files.
Please contact Assistant City Manager/Finance Doug Haag (305) 792-1701 regarding
performance of this agreement.
Thank you.
Sincerely,
~~W~
Priscilla Walker, CMC
Deputy City Clerk
Attachments
cc: Doug Haag, Assistant City Manager/Finance
Office of the City Clerk (305) 792-1703 Phone (305) 949-3113 Fax
Appraisal Agrmt W-American Appraisal Associates Trans Ltr
Al1)erican Appraisal Associates, Inc.
8833 Westmoreland Lake Drive, Cornelius, NC 28031
direct 704 439 2515 / mobile 704 953 9780
fax 704 439 0384
Leadif19 .I Thinkinq ! Pertorminq
American
Appraisal
October 3, 2007
Mr. Doug Haag
Assistant City Manager/Finance
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
Dear Mr. Haag:
This letter is to confirm your authorization for American Appraisal to appraise twenty (20) additional
land parcels plus additional buildings (see Attachment A), as part of the authorized appraisal for
GASB 34 compliance and insurance placement.
Our fee to perform these services will be $4,000. All other terms and conditions outlined in the
original contract agreement dated July 19, 2007, shall remain in force. Please note we will be unable
to deliver any conclusions. verbal or written. until we are in receipt of this acknowledgment.
Mr. Haag, you will be in invoiced once the additional properties and land parcels appraisal are
completed. You may wish to fax the signed Agreement in its entirety, to me at (414) 225-1908.
Thereafter, please forward the original to my assistant, DeeAnn Rakovich, at American Appraisal,
411 East Wisconsin Avenue, Suite 1900, Milwaukee, Wisconsin 53202.
~~
i B, 100
4,000
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QNI Stcl Co"'1~ct A~w~
Lori Flemming
Director, Fixed Asset Management and Insurance Solutions
LFjdar
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Title: ~ s ~\S\CA '^'\ C, ~J VV\. a. \/Vt ~eY
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Phone:
E-mail:
Date:
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Valuation I Transaction Consultln~.l .I Heal Estate Advisory! Fixed Asset Management
~
American
Appraisal
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Property/Building Lists
Leading I Thinking I Performing
Exhibit A
p.
American
Appraisal
Additional Land Parcels
PROPERTY ADDRESS
FOLIO
SALE AMOUNT
18050 Collins Ave 31-2211-005-0011
18070 Collins Ave 31-2211-005-0010
18080 Collins Ave 31-2211-005-0016 2,400,000
Golden Shores Ocean Blvd East 31-2202-009-0180
201191 Terrace 31-2202-009-0170 85,000
17425 Collins Ave 31-2211-004-0210 2,650,000
500 Sunny Isles Blvd 31-2214-007 -0210 3,000,000
18115 N. Bay Rd. 31-2211-019-0010 1,000,000
17451 Collins Ave 31-2211-004-0170 2,850,000
19200 Collins Ave I I 31-2202-011-0040 19,645,606
Sunny Isles Tract - Land 31-2211-064-0010
17200 Collins Ave 31-2211-004-0070
Golden Shores Ocean 31-2202-009-0035
Ocean Blvd Ests 31-2202-007-0060
Ocean Blvd Ests 31-2202-007-0010
Golden Shores Ocean Blvd 31-2202-006-0145
South Shore Ests 31-2211-001-0300
South Shore Ests 31-2211-001-0290
Collins Ave-Vacant Land 31'2214-008-0350 500,000
R K Marina - Land 31-2211-066-0045
Total 32,130,606
3 properties bought
together
2 properties bought
together
no appraisal yet
Additional Buildings
1) Tony Roma's
2) Alamo Building
3) Diesel Gas Pump and Tank
4) Unleaded Gas Pump and Tank
5) Public Works site beneath bridge (there's actually no buildings there - they store stuff in shipping
containers which cost $3000)
6) Pump Station
7) One more park (in addition to the original six)
Leading! Thinking! Performing
Exhibit A- Page 1