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Item F03130ARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: November 17, 2010 Division: Employee Services Bulk Item: Yes X No Department: Risk Management Staff Contact Person/Phone#:Maria L. Slavik X3178 AGENDA ITEM WORDING: Approval to accept proposal from Asset Works Appraisal for Real and Personal Property. ITEM BACKGROUND: The last appraisal was performed by Marshall & Stevens Incorporated on September 23, 2005. Provide appraisal of for establishing the values to be insured under its Property insurance program. PREVIOUS REVELANT BOCC ACTION: The County received six (6) proposals in response to the RFP for Property Appraisals. Based on a review of each proposal, it appears as if each firm submitting a proposal have the technical expertise and experience to serve the needs of the County. Based on the ability of the firms to provide comparable services, the evaluation shifted to the price. The proposals ranged from a low of $8,360 to a high of $96,000. There was no apparent reason for the spread in fees. CONTRACT/AGREEMENT CHANGES: None STAFF RECOMMENDATIONS: Approval the proposal from Asset Works Appraisal in the amount of $8,360. Based on our past experience with property appraisals, it is also recommended that the Board approve an additional $2,000 to be used at the discretion of the Risk Administrator to cover the cost of unforeseeable issues that that may arise during the appraisal. TOTAL COST: $10,360 INDIRECT COST: BUDGETED: Yes X No COST TO COUNTY: $10,360 SOURCE OF FUNDS: Ad Valorem REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year _ APPROVED BY: County Att y ��,G`�" Purchasing Risk Management411/ DOCUMENTATION: Included X To Follow Not Required DISPOSITION: AGENDA ITEM # Revised 2/27/01 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS CONTRACT SUMMARY Contract with: Asset Works Appraisal Contract # Effective Date: 12/01/2010 Expiration Date: Contract Purpose/Description: Appraisal of Real and Personal Property Contract Manager: Maria Slavik 3178 Risk Management #7 (Name) (Ext.) (Department/Stop #) for BOCC meeting on 11/17/10 Agenda Deadline: 11-2-10 CONTRACT COSTS Total Dollar Value of Contract: $ $10,360 Current Year Portion: $ Budgeted? Yes® No ❑ Account Codes: 503-08502-530-450- Grant: $ County Match: $ - - ADDITIONAL COSTS Estimated Ongoing Costs: $ /yr For: (Not included in dollar value above) (eg. maintenance, ities, janitorial, salaries, etc. CONTRACT REVIEW Changes Date Out Division Director Date In 10 T� Needed %%� Reviewer , YesYes[:]NoEll _, �Q 2-q 1 Risk Manage nt 9e YYes[:]No� O.M.B./Purchasing Z.-10 Yes[:] N& County Attorney Yes[:] Noff/ Comments: umn torm Kevlsea CIl //u 1 ml r 42 C UNTYMON ROE KEY WEST FLORIDA 33040 (305)294-4641 Office of the Employee Services Division Director The Historic Gato Cigar Factory 1100 Simonton Street, Suite 268 Key West, FL 330tO k (:305) 292-4458 — Phone (30:5) 2924564 - Fax iy �, TO: Board of County Commissioners FROM: Teresa E. Aguiar, Employee Services Directo DATE: October 28, 2010 SUBJ: Award Bid to Asset Works for Appraisal of Property BOARD OF COUNTY COMMISSIONERS Mayor Sylvia J. Murphy, District 5 Mayor Pro Tem Heather Carruthers, District 3 Kim Wigington, District 1 George Neugent, District 2 Mario Di Gennaro, District 4 This item requests approval to accept the bid proposal from Asset Works Appraisal in the amount of $8,360. The last appraisal was performed by Marshall & Stevens Incorporated on September 23, 2005. We will use the information obtained from the appraisal for establishing values to be insured under our Property insurance program. To ensure the County is purchasing proper limits on its Property Insurance, appraisals must be performed periodically. Six proposals were received and Asset Works was the lowest bidder at $8,360. If during the appraisal we learn of a structure that was not included (for whatever reason) on the original schedule, Asset Works will charge the County an additional $135 to appraise each additional property. This is why it is also recommended that the Board approve an additional $2,000 to make the total request $10,360. Once the initial appraisal is done, Asset Works also proposed a fee of $995 to provide annual updates to its appraisal if requested by the County. If after the initial appraisal, the County wanted Asset Works to appraise additional structures, they would charge a minimum fee of $2,700 to appraise one (1) additional structure and $135 for each additional structure. However, it is not expected that this scenario would come into play. It is therefore recommended that the BOCC approve this Agenda Item in the amount of $10,360. If you have any questions, please do not hesitate to contact me. INTERISK CORPORATION Consultants Risk Management Employee Benefits October 6, 2010 Ms. Maria Slavik Risk Manager Monroe County 1100 Simonton Street Suite 2-268 Key West, Florida 33040 Subject: Evaluation of Property Appraisal Proposals Dear Maria: I I I I North Westshore Boulevard Suite 208 Tampa, FL 33607-4711 Phone (813) 287-1040 Facsimile (813) 287-1041 The County received six (6) proposals in response to its RFP for Property Appraisals. Based on a detail review of each proposal, it appears as if each firm submitting a proposal have the technical expertise and experience to serve the needs of the County. Since it was believed that all of the firths would provide comparable services, the focus of the evaluation shifted to price. The proposed initial fees ranged from a low of $8,360 to a high of $96,000. There was no apparent reason for the wide spread of the fees. Asset Works Appraisal proposed the $8,360 fee. Asset Works used to he known as Maximus Appraisal Services. Asset Works has provided appraisal services for a number of governmental entities in Florida. They have an exclusive arrangement with the Preferred Governmental Insurance Trust (PGIT) to appraise the properties of its members. PGIT is recognized as one of the leading self insured trusts for governmental entities in Florida. PGIT was contacted who advised that they were extremely pleased with Asset Works' services. In addition, Asset Works provided references from: Y The City of Key West ➢ Charlotte County ➢ The City of Sunrise, Florida Each of these entities were also contacted by telephone and they all expressed complete satisfaction with Asset Works services. Without exception, they advised that their services met or exceeded their expectations and were performed in a timely fashion. Based on the review of the proposals and the conversations with Asset Works' references, it is recommended that Monroe County select Asset Works to perform the appraisal of its properties. Based on our past experience with property appraisals, 4 is also recommended that the Board approve an additional $2,000 to be used at your discretion to cover the cost of unforeseeable issues that may arise during the appraisal. This will bring the total projected cost of the appraisal to S 10,360. Asset Works also proposed a flat fee of $995 to provide annual updates to its appraisal. This was also considerably less than the fees proposed by the other proposers. If the County needs additional appraisals of buildings in the future, Asset Works has proposed a fee of 5135 per building (subject to a minimum fee of $2,700. As always, please do not hesitate to call if you have any questions. Cordially, INTERISK CORPORATION Sidney G. Webber CPCU, ARM MONROE COUNTY EVALUATION OF PROPOSALS FOR PROPERTY APPRAISAL RFP RSK 27194 2010PUR/CV October 1, 2010 All Keys Appraisal Proposed Fee $38,350 Proposed Update Fee $19,500 No sample reports provided Proposal indicates that buildings will be appraised based on "Depreciated Value". Since the County's Property Insurance is provided on a "Replacement Cost" basis, buildings should be appraised on a Replacement Cost basis. Local Firm Only provided professional designations for one person (Mark Maclanghein). Appears to be a small firm. Did not provide any information regarding past experience Did not provide samples of reports that would be issued. Provided evidence of satisfactory insurance Did not provide any references W"ill bill based on percentage of completion Did not provide references Specialty Property Appraisals LLC Proposed Fee $12,300 Proposed Update Fee $950 The Tabulation Sheet reflects this company as American Society of Appraisers. It should read Specialty Property Appraisals LLC. Formed in May 2006 Principal used to be President of Valuation Resource Management that was sold to Maximus in 2000. Provided services for at least 5 other governmental entities. Indicated that they will meet with the County prior to the field work to develop an understanding of the County's expectations. Appears as if individuals that will perform the services are highly qualified. Provided references Provided a well structured Project approach Indicated that entire project can be completed in 8 weeks. Would recommend that providing a draft report be included in Project Report Provided sample reports. Reports appear to be well structured and incorporate all necessary information. Will provide an Excel report containing critical data. Proposal was well structured to include all requested information. Calls should be made to references to verify level of services provided. Can meet insurance requirements. Industrial Appraisal Company Proposed Fee $12,490 Proposed Update Fee $690 if updates are performed annually $995 if updates are performed biennially It appears as if entire project will be coordinated from Pittsburg Pennsylvania Proposal does not indicate who will actually do the work nor their professional qualifications Proposal does not provide any professional designations of Industrial Appraisal's Management team. While proposal indicates that contents will be included with their appraisal, they keep referring to contents as Machinery & Equipment. In only one place (proposal forms) do they suggest that office furniture will be considered as contents. Proposed fee only includes one hard copy of their report and a copy of their report in ACE II which is an exclusive Advance Content Excel Spreadsheet. Being that this is an exclusive program, it is not known if a standard Excel program will be able to access it. No sample of Industrial zkppraisal's report was provided. Proposal did not indicate any work ever being performed in Florida. 'Fhe method that they would use to establish the value of the County's buildings was not clearly explained. 60% of the fee would be owed when the fieldwork is completed and the balance would be due when the complete their report. All fees must be paid before the report is released. Submitted their own contract. Will need to confirm how consistent their contract is compared to the County's contract. American Appraisal Associates, Inc. Proposed Fee $25,500 Proposed Update Fee $2,500 Extensive prior experience was presented as part of their proposal A well structured approach to the project was presented. No sample reports were provided. AAA would maintain details of the appraisal that would not normally be included in a formal report (such as plot plans and building footprints) that would be accessible via the internet. It appears as if all of the individuals that would be assigned to the County's account have extensive appraisal experience, however, no details on their professional designations was provided. While it appears as if a firm fixed price was provided, on page 8 of their proposal it suggests that the fee is an estimate and on page 9 it indicates that any increase in the engagement scope or services will result in additional fees. A sample contract was included in their proposal. It will have to be reviewed by Legal and compared to the County's contract for any variations. Appears to have provided services for a number of governmental entities some of whom are located in Florida. Can complete the project within 60 days from receiving notification to proceed. Progress billings will be issued based on time and expenses incurred. Callaway & Price, Inc. Proposed Fee $96,000 Proposed Update Fee S20,000 Services will be provided from Callaway's West Palm Beach Office Appears to have extensive governmental entities with 24 different Florida governmental entities listed as prior experience. The Project 1lpproach presented in Callaway's did not indicate that they will have a pre -inspection meeting to ensure they fully understand the County's needs and desire. The individuals that would be assigned to the County's project appear to be highly qualified. Proposal contained impressive bio graphical summaries for 10 different individuals, however according to their proposal; only 3 will be assigned to the County's project. The County will be billed at the end of the project. The County's contract contained in the RFP will be acceptable to Callaway. There were no sample reports contained in Callaway's proposal. Nor did they specify what information would be contained in their report. The only significant reference to their report was contained in Section S of their proposal which stated New appraisals will be provided in Summary format. AssetWorks Apprasial Proposed Fee $$8,360 Proposed Update Fee S995 AssetWorks was previously known as Maximus Presented a well thought out approach for conducting the County's appraisal Recently performed an appraisals for City of Key West, Charlotte County, and City of Sunrise Can complete project within 60 days. Upon delivery of draft report, Monroe County will have two weeks to review it and offer suggested changes. This establishes a time frame that the County must comply with. Provided sample reports that were well structured and contains the information needed by the County. Project will be managed from AssetWorks' Pittsburgh, Penn. Office. Only provided biographical summaries for the Project Nlanager and the Data and Report Technician. Proposal clearly states that proposed fees include all out of pocket expenses. Proposed fee anticipates that a total of 88 buildings will be appraised. Offered online access to the County's building data utilizing asset Nlax_ The cost of Asset Max will be $1,500 per year, however the proposed fee includes one free subscription to Asset Max. Limits of liability for any claim not covered by Asset Max's insurance will be the project fee ($8,360). Limits of liability for claims covered by Asset Nlax's insurance will be the amount of Liability limits required by the County. MONROE COUNTY EVALUATION OF PROPOSALS FOR PROPERTY APPRAISAL RFP RSK 27194 2010PUR/CV October 1, 2010 INITIAL RANKING 1. Asset Works Appraisal 2. Specialty Property Appraisals (American Society of Appraisers) 3, Industrial Appraisal Company 4. American Appraisal 5. All Keys Appraisal G. Callaway & Price