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HomeMy WebLinkAboutAGENDA REPORT 1990 0418 CC REG ITEM 08IPAUL W. LAWRASON, Jr. Mayor SCOTT MONTGOMERY Mayor Pro Tcm ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember BERNARDO M.PEREZ Councilmember LILLIAN KELLERMAN City Clerk TO: FROM: DATE: SUBJECT: BACKGROUND MOORPARK ITEM 236 1• pN P P, o° F j(. o�.._. n � 9 0 4,Q TEp HONORABLE CITY COUNCIL f RICHARD HARE, DEPUTY CITY MAN ER April 12, 1990 PROPERTY VALUATION & FIXED ASSET SYSTEM The reporting of the City's financial condition is guided by principles developed since 3.934 by the National Council on Governmental Accounting (NCGA). The Municipal Finance Officers Association publishes the Governmental Accounting and Financial Reporting Principles, commonly referred to as the GAAFR, as a guide to auditors and finance officers on the recording of muncipal financial transactions and the reporting of a municipality's financial condition. Per these standards and the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions (1981 Revision), issued by the U.S General Accounting Office, a muncipality should record the fair- market values for certain real property and equipment. in the General Property and Equipment Account Group of t' s combined balance sheet. This lack of conformance with gc.,nerally accepted accounting principles has been noted Ly the City's independent auditors since the City's incorporation. This deviation does not have a material effect on the combined results of operations of the City of Mo(:;)r park, however it should be corrected in order to bring ou f- nancial statements into compliance with the GAAFR and A0 Standards. FIXED ASSETS SYSTEM In order to develop appropriate values for certain real property and equipment in the possession of the City it is first necessary to do a surVEAy of all equipment with a value in excess of $500 anr., all Land, buildings and improvements. These items 4 till then be valued. The 799 Moorpark Avenue Moorpark k :;alifornia 93021 (805) 529 -6864 STEVEN KUENY City Manager CHERYLJ.KANE iy City Attorney r r PATRICK RICHARDS, A.I.C.P. /m Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer HONORABLE CITY COUNCIL f RICHARD HARE, DEPUTY CITY MAN ER April 12, 1990 PROPERTY VALUATION & FIXED ASSET SYSTEM The reporting of the City's financial condition is guided by principles developed since 3.934 by the National Council on Governmental Accounting (NCGA). The Municipal Finance Officers Association publishes the Governmental Accounting and Financial Reporting Principles, commonly referred to as the GAAFR, as a guide to auditors and finance officers on the recording of muncipal financial transactions and the reporting of a municipality's financial condition. Per these standards and the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions (1981 Revision), issued by the U.S General Accounting Office, a muncipality should record the fair- market values for certain real property and equipment. in the General Property and Equipment Account Group of t' s combined balance sheet. This lack of conformance with gc.,nerally accepted accounting principles has been noted Ly the City's independent auditors since the City's incorporation. This deviation does not have a material effect on the combined results of operations of the City of Mo(:;)r park, however it should be corrected in order to bring ou f- nancial statements into compliance with the GAAFR and A0 Standards. FIXED ASSETS SYSTEM In order to develop appropriate values for certain real property and equipment in the possession of the City it is first necessary to do a surVEAy of all equipment with a value in excess of $500 anr., all Land, buildings and improvements. These items 4 till then be valued. The 799 Moorpark Avenue Moorpark k :;alifornia 93021 (805) 529 -6864 resulting values would be enterred into the General Property and Equipment Account Group as part of the combined balance sheet of the City of Moorpark. If it is the City's intentioru to keep this information up to date and to record changes in the General Property and Equipment Account Group, it is also necessary to establish a system for recording additions and deletions of equipment and property as well as depreciation or appreciation of values. This allows for the ,•ecording of accuarate values for insurance purposes as we,..l as accurate reporting for the combined balance sheet.. Inquires have been made with several firms which specialize in valuation of fixed assets and the installation of recording systems. The firms contacted were Valuation Counselors, Consilium, and Mar-shall & Stevens. All of the firms would provide inventoring, tagging, and recording services including the inst.a l . at. i on of a PC database system which staff could up date ar,nually. Marshall & Stevens would also provide the gener_.c tags and would be able to complete the work in May. Adcit.ionai.ly, their proposal is significantly less than the proposals received from the other firms. RECOMMENDATION It is staff's recommendat -ion that the City Council appropriate $7,000 from the inrestricted fund balance of the General Fund for the purposes of valuing City property and equipment and establishing a fixed asset recording and reporting system. Further, it is recommended that the City Manager be authorized to engage Marshall & Stevens Incorporated to perform th, work described in their proposal. ATTACHMENT: Proposal Marsha::: Stevens HF'F.' —Gtr i =i 1�:5 ;L:I1HF " =HHLL = .TEI!E1T s '1 =- EF =,'+11 a PO April 6, 1990 Mr. Richard Hare Deputy City Manager CITY OF MOORPARK 799 Moorpark Avenue Moorpark, California 93021 Dear Mr. Hare: MARSHALL AND STOMN8 INCORPORATED 800 South Cornmonw8Anh AveruA Suft 700 LOS A VOW, CA 00005.ga17 (213) 985.1515 FAX (213) 3888911 Marshall and Stevens is pleased to present this proposal for inventory and appraisal services. The purpose of the appraisal is to provide a fixed asset inventory of land, building equipment and contents to the City of Moorpark. The properties to be included are your City Hall, Community Center and 7 park sites. Buildings - Each structure will be inspected and valued, as will your land improvements, such as paving and lighting. Contents and Equipment - Based upon a $500 capitalization Policy, your equipment and contents will be inventoried and valued. Minor non - capital equip- ment will be listed by group or count and included for insurance purpoGes only. Marshall and Stevens will apply aj tag to each individually capitalized item. Land - Based upon a search of city records and approved appraisal techniques, the original value of city land will be determined. City vehicles and similar moveable items will be included based upon city supplied records The values to be determined for all assets are: • Original cost • Life • Year acquired. o Accounting values o Insurable values o Department. o Fund 0 Account HF'R—= ir, —' -,�� 1� I C f1i ice`= HEiLI. TF kt1'�'y PR CONTRACTUAL CONDMONS By soeepting this Latter of Agreement for appraisal services. the client, for whom our appraisal report is pr aparod, agrees to the follow- ing terms and conditionu. unlosa altemativdor supplementary terms and conditions are defined and agreed upon. Terms and conditions may be amended or supplemented only by an agreement in writing signed by Marshall and Stevens. 1. Any use by the client of the appraisal report is cons itioned upon payment of all Marshall and Stevens' fees in a000rdancei with the agreed credit terms. 2. Client agrees to preserve the confidential format and content of our mpotts. Our reports and the Marshall and Stevens name arc not to be used in whole or in part outside your organization, without out prior written approval, except for review by your auditors and legal counsel, and by representatives of taxing authorities. We will likewise pmscrvc the confidential rJ nature of information received from you. or developed during this c ngagcmcnt, in accordance with our established profes- sional standards. 3. Client agrees that Marshall and Stevens does not, either by entering into this contract or by performing the services rendcted, assume, abridge, abrogate or undertake to discharge any ditty of client to any other entity. 4. Marshall and Stevens warrants that it will perform its samoea in a profcsaional manner in accordance with appraisal industry standards. Marshall and Stevens makes nc, further warranty of any kind, "pressed or implied. S. In consideration for performing the services tendered at the fee charged, Marshall and Stevens expressly limits its liability to five times the amount of the fee paid or $25.000. whichever is less. 5. Marshall and Stevens expressly disclaims liability ak an instrror or guarantor. Any person seeking greater protection fmm loss or damage than is provided for herein should (0,Eain appropriate insurance. 7� .Delivery schedules quoted assume (unless othcrw ia- stator) that Written authorization and/or the retainer rcqu stcd will be received (1) by a specified date or (2) in a timely manna; All supporting information to be provided by the client will be readily available; Out appraisal staff will be afforded ready ace'. , s um the assets to be appraised. 8. •rhc pm,�a authorizing this engagement u cmpow, , td to do so 9. Fees are in no way contingent upon values concluded by Marshall and Stevens. Fees quoted in proposals or engagement letters are due an,,4 payable regardless of whothcr ox riot conclusions reached coincide with client expectations. 10. No opinion is intended to be ax eas d for mattes that inquire legal or specialized expertise, investigation or knowledge beyond that customarily cmpl •a1 by apprai&ca t- &lusting the value of assets. 11. Unless specifically brought to our serer' - "on+ wa wi' asswnc throe am no hidden or uncxpecied mnditions of the assets that would adversely affect value. / 12. hazardous substances, if pmsc ,.t within a facility. can introduce an actual or potential liability that will adversely affect the marketability and value of the facility. Such liability may be in the form of immediate recognition of existing hazardous conditions or future liability th could sum from Ow- rtltasc of currently nonhazardous contaminants. In the development of our opir on of value, no consideration will be given to such liability or its impact on value unless Marshall and Stevens is specifie.'ally retained to perform or prepare an environmental or toxic Contamination report. Unless such a report is prepared by Mats '1011 and Stevens, ! ient releases Marshall and Stevens from any and" futwc environ- mental liability. 13. if, in the future, Marshall and StcvtNa is requested or compelled to produce documents or testify with regard to the work performed for client, client shall rti, nbum Marshall and Stever for all costs, including those for attorneys fees, preparation and travel time, court or deposition time, and expe;ses incurred 14. The client shall indemnify and hold harmless Marshall and Stovcns and its employees, agents or subcontractors against all Claims made by any third party and an, / judgment f cut loss, damage or expMuts of whatsoever nature and howsoever arising relating to the performance, tx r: orm- perfoTnr Incc of any srrvic A by Marshall and Stevens. L E l -1 7, 73 r - X91 1 # 1 9 F'FI Mr. Richard Hare CITY OF MOORPARK April 6, 1990 Page 2 The City will have the option of having a copy of their report prepared for our pc -based fixed asset software or for use with Lotus. our fee to the City for this project is $4,000 for the build- ing, contents and reports, and $200 per parcel (minimum of 10 parcels) for your land, giving an estimated total cost of $5,000. The reports, given timely authorization, can be deli- vered by the second week in May. Additionally for $200, a report with an as of date of ;Tune, 1989, can be prepared. Generic tags are available from Marshall and Stevens which are similar to the one below entitled "Property Control Tag." The fee for this service is $100 per 1,000 tags. This fee includes consultation with your auditors to ensure the acceptance of your reports. Below is a list of three cities and one insurance pool fc; your reference. City of Oxnard Mr. Tom Berkhart City of Palmdale Mr. Bill Ramsey City of Fontana Mr. Roger Neve S.I.S.K. Mr. Tim FAux FROPE f OF oui E 4asNNlNERIC LABELS 0002 If the terms and conditions of this E- proposal meet your require- ments, please endorse and return one copy of the enclosed to my attention. I Please call me at (213) 385 -1515 should�pou have any questions. We look forward to working with you �a �#�his important project. Very truly yours, MARSHALL AND STEVENS INCORPORATED rok fil Donald B. McDougall Valuation Consultant Government Services Accepted By*, Signature:_ Typed Name: Tit le: Dal �3 -t J MARSHALL AND STEVENS INCORPORATE 01 1:� F1_14 CONTRACTUAL COND)f'i'IONS B this Letter of Agreement for appraisal scfvices, the client, for whom our appraisal report is praparod, agrees to the follow- ing trsrna and conditions, urnlost+ alternative ar supplementary terms and oonditiosls are defined and agreed upon. Tama and conditions may be amended or suppltmented only by an agreement in writing signed by Marshall and Stevens. 1. Any use by the client of the appraisal report is conditioned upon payment of all Marshall and Stevens' fees in socootdatwo with the agreed credit terms. 2. Client agrees to preserve the confidential format and content of our reports. Our reports and the Marshall and Stevens name are not to be: usod in whole or in part outside your organization, without out prior written approval, except for review by your auditors and legal counsel, and by rgnwtntetives of taxing authorities. We will likewise preserve the confidential name of information received from you. or developed (luring this engagement. in accordance with our established profcs- itorW standards. 3. Client agrees that Marshall and Stevens does not, either by entering into this contract or by performing the sttvim rendered, assume, abridge. abrogate or undertake to discharge any duty of client to any other entity. 4. Marshall end Stevens warrants that it will perform its services in a professional maruner in accordance with appraisal industry standards. Marshall and Stevens makes no further warranty of any kind. expressed or implied. 5. ki consideration for performing the services rendered at the fee charged, Marshall and Stcvcns expressly limits its liability to five times the amount of the fee paid or $25.000. whichever is leas. 6, Marshall and Stevens expressly disclaims liability as an insuror or guarantor. Any person seeking greater protection from loss or damage than is provided for herein should obtain appropfiate insurance. Delivery schedules quoted assume (unless otherwise sUkted) that' Written authorization and/or the retainer requested will be received (1) by a specified date or (2) in a timely manner All supporting information to be provided by the client will be readily available; Our appraisal staff will be affordtd ready access °o the assess to be appraised. The person authorizing this engagement is emprrwcre, I to do so. 9. pots are in no way contingent upon values concluded by Marshall and Stevens. Fees quoted in proposals of engagement letters are due and payable regardless of whether or not conclusions reached coincide with client expectations. 10. No opinion is intended to be expressed for matters that require legal or specialized expertise, investigation or knowledge beyond that customarily employed by appraisers tvalimting the value of assets. 11. Unless specifically brought to our attention, we will R +gumc thcrc we no hidden or unexpected conditions of the assets that would adversely affect value. 12. Hazardous substances, if present within a facility, can introduce an actual or potential liability that will adversely affect the marketability and value of the facility. Such liability may be in the form of immediate recognition of existing hazardous conditions or future liability that could stem from the release of currently nonhazardous contaminants. In the development of our opinion of value, no consideration will be given to such liability or its impact on value unless Marshall and Stevens is specifically retained to perform or prepare an environmental or toxic contamination report. Unless such a report is prepared by Marshall and Stevan, client releases Marshall and Stevens from any and all future environ- mental liability. 13. If, in the future, Marshall and Stevens is requested cn compelled to produce documents or testify with regard to the work performed for cliont, client shall reimburse Marshall and Stevens for all costs, including those for anomeys fees, preparation and travel time, court or deposition time, and expenses incurred. 14. The client shall indemnify and hold harmless Marshall and Stevens and its employees, agents or subcontractors against all claims made by any third party and any judgment for loss, damage or expanses of whatsoever nature and howsocvcr arising relating to the performance, or nan- performs nee of any Services by Marshall and Stevens.