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HomeMy WebLinkAboutItem C35 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: February 17. 2010 Division: Employee Services Bulk Item: Yes X No Department: Risk Management Staff Contact PersonlPhone #: Maria Slavik X3178 AGENDA ITEM WORDING: Approval for Marshall & Stevens Incorporated to perform appraisal services on the buildings and contents for all Monroe County owned property. ITEM BACKGROUND: The last appraisal was performed by Marshall & Stevens Incorporated on September 23, 2005. This appraisal will be an update to that valuation and will also include any additions and deletions since the last appraisal. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval TOTAL COST: not to exceed $15.400 INDIRECT COST: None BUDGETED: Yes X_No DIFFERENTIAL OF LOCAL PREFERENCE: N/A Primarily COST TO COUNTY: N/A SOURCE OF FUNDS: _Ad Valorum REVENUE PRODUCING: Ye~ No X AMOUNT PER MONTH_ Year_ APPROVED BY: Coonty Atty _ ~hasing _ Risk Maoagement l'\1J. DOCUMENTATION: Included X NotRequired_ DISPOSITION: AGENDA ITEM # Revised 7/09 .\1 \I:SII \1 [. ~lllll. . S I F.\ L'\~ Monroe County February 8, 2010 Page 1 February 8,2010 Monroe County Attention: Maria Slavik Acting Risk Manager P. O. Box 1026 Key West, FL 33041-1026 Dear Ms. Slavik: We are pleased to submit this engagement letter for valuation and appraisal seNices on the buildings and building contents of Monroe County. Purpose & Scope of Service We understand the purpose of the appraisal will be to provide replacement cost new for the buildings and building contents for insurance purposes. The seNices are designed to support your need for accurate insurance coverage on the buildings. As part of the scope, we will provide a limited analysis of the building contents for internal planning purposes. Premise of Value The premise of value will be Replacement Cost New, as defined as follows: Replacement Cost New. The current cost of a similar new property having the nearest equivalent utility as the property being appraised.! The valuation will be as of the date of inspection or a current date that you specify. Values will be assigned by building location. Contents will also be appraised based on a Replacement Cost New premise of value. 1The American Society of Appraisers Machinery and Equipment Committee, 2009. \I.'.f:'-II \11. ~I Monroe County February 8, 2010 Page 2 S I I \ L"~ Valuation Procedures and Format Based on our discussions with the client, we will be performing this valuation solely as an update. The client will supply us with an updated asset list, in excel format, containing all the additions and deletions since our last appraisal. We intend to rely on this asset list as the basis of our valuation. A site inspection is made to inspect the additions since our last appraisal and we will also perform a sampling of the equipment contained in our last appraisal dated September 23, 2005. In order to arrive at the Replacement Cost New of the structures, we will use the Calculator Method of valuation for the buildings and contents. In the Calculator Method, the average cost per square foot is applied to the square footage of the structure being appraised. This is typical of the industry to use this method. Costs are classified by quality of construction and class. Buildings typical of a certain quality have many characteristics in common, i.e., a good quality building will have a good quality roof. However, base cost refinements are made for the heating and cooling system, elevators, sprinklers, base story height, size and shape (relationship of exterior wall area to floor area), and number of stories as they deviate from the norm. The following components are reviewed in order to prepare the valuation: . Occupancy Type . HVAC . Rank . % Exclusions . Age . Area . Sprinklers . Number of Stories . Mezzanines . Elevators . Construction Class . Basements Exclusions The property will be appraised with due consideration to its present use with no consideration being given to prospective, contemplated or possible alternate uses of the property. We will value the property, subject to "standard" property insurance exclusions. The appraisal will not take into consideration the replacement of the property to account for any cost of demolition in connection with reconstruction; or the removal of destroyed property. Report Timing We will commence the assignment upon receipt of your written authorization to proceed. We have staffing to begin the project immediately, assuming we have immediate authorization to .\1 \HSII \1 I ~I Monroe County February 8, 2010 Page 3 proceed. In order to address your timing needs, our services are designed to be a cooperative effort; and therefore, we request that a liaison be provided who will be available to answer questions and arrange access to all areas of the properties. We will deliver our results by the end of March assuming there is no delay in receiving the signed engagement letter and all documents requested. If there is any delay in the receipt of the signed engagement letter or any documents requested, Marshall & Stevens reserves the right to change the delivery date of our results. Any such delays will be communicated to the client. S I E.\ E'_~~ The fees quoted will be valid for a period of thirty (30) days after which time we reserve the right to revise the fees. You will receive three (3) copies of written reports describing the procedures and analyses utilized in the investigation, as well as the resulting value conclusions. Imbedded in the reports will be building photographs, summary of building physical data, and an excel spreadsheet summary. We will provide the reports on CD as well as hard copies. Our reports will consist of a letter of transmittal that summarizes the results, specifies the data, and outlines the function of the reports. The letter will also state the names of the properties, the scope of our services, and a description of our valuation procedures. This will be followed by a summary of the assets appraised as described above in an excel format. Summary of Professional Fees Our fee, payable by Monroe County, is based on the hours spent by the professionals assigned to the engagement and the commitment to engage Marshall & Stevens, based on your supplied schedule our fee is $14,000 plus expenses, expenses are not to exceed $1,400. Total project fee, including expenses, will be capped at $15,400. Our fee will be due and payable based upon the following schedule: a) The entire fee of $14,000 plus any expenses, is due upon delivery of the draft report and submission of our invoice b) Once Marshall & Stevens has received payment in full, we will release the final report to Monroe County. We understand that Monroe County will be our client of record and financially responsible for the fees incurred on this assignment. All invoices are due and payable on presentation, and are subject to carrying charges of 1.5% per month beginning one month from date of original invoice. Collection costs, including legal fees and court costs, if needed, would be additional. If any unexpected problems are encountered during the course of the engagement, or if the performance of additional services not contemplated above are required, we reserve the right to review our fee. Work canceled prior to completion will be billed in accordance with \l\f:'-II\11. ~I I Monroe County February 8, 2010 Page 4 professional time, office charges, and expenses incurred through the date of cancellation, plus reasonable administrative termination costs. If a retainer has been received, the difference between the above costs and the retainer, if any, will be refunded. The above fees do not include future advisory or testimonial services that may be required in connection with our analysis. Any services not included above will be billed at our regular hourly rates. S [ E\ L\~ Acceptance The attached contractual conditions are part of this proposal. Please indicate your acceptance of the proposal contained herein by signing and returning the enclosed copy of this letter to my attention. We appreciate this opportunity to be of service, and we look forward to working with you on this project. Sincerely, Accepted By: Marshall & Stevens Incorporated Monroe County ~~~ Ashwin Nandkumar Vice President Signature: Marshall & Stevens Incorporated Date: Bank of America Plaza 101 E. Kennedy Boulevard, Suite 3425 Tampa, FL 33602-5154 Main: (813) 962-7888, ext. 5301 Direct Dial: (813) 345-5301 Mobile: (201) 577-8351 Fax: (813) 963-2251 Toll Free (800) 950-9588, ext. 5301 E-Mail: anandkumar@marshall-stevens.com MONROE COUNTY ATTORNEY A ROVED AS]O 0 ~ -,... YNTH IA L. HALL ASSISTANT COUNTY ATTORNEY Date a- 8, Ol.o'D cc: Robert E. Owens, ASA Please return a signed copy to the Tampa address shown above. .\1 \I{"II \1 I 'I. S n \ L',~ Monroe County February 8, 2010 Page 5 CONTRACTUAL CONDITIONS (Revised 2/8/2010) In consideration of Marshall & Stevens performing the Appraisal services specified, at the fees charged, the client for whom our Appraisal report is prepared agrees to the following terms and conditions. These terms and conditions may be amended or supplemented only by an agreement in writing signed by Marshall & Stevens. 1. Client warrants that the person authorizing this engagement is empowered to do so. 2. Any client use of the Appraisal report is conditioned upon payment of all Marshall & Stevens' fees and expenses in accordance with the agreed payment terms. 3. Fees are due and payable regardless of whether or not conclusions reached coincide with client expectations. Fees are in no way related to values determined by Marshall & Stevens. 4. Unless specifically brought to our attention, we will assume there are no hidden or unexpected conditions that would adversely affect value. 5. Our reports, the Marshall & Stevens name, and the name of any subcontractor, are not to be used in whole or in part outside the client's organization, by the client, without our prior written approval, except for review by client's auditors, legal counsel, insurance agent, insurance representative and by representatives of taxing authorities. We will likewise preserve the confidential nature of information received from you, or developed during this engagement, in accordance with our established professional standards. We will respond to legal process for client information after delivering a copy of such process to client. 6. Client agrees that Marshall & Stevens does not, either by entering into this contract or by performing the services rendered, assume, abridge, abrogate or undertake to discharge any duty of client to any other person. 7. Delivery schedules quoted assume (unless otherwise stated) that: Written authorization and the documents requested will be received in a timely manner as agreed: All supporting information to be provided by the client will be readily available; and Our staff will be afforded ready access to all things and persons necessary for the assignment. 8. No opinion is intended to be expressed about matters that require legal or specialized expertise, investigation or knowledge beyond that customarily employed by appraisers. Clients seeking engineering, legal, tax, accounting, investment or other professional advice should retain such advisors. 9. Marshall & Stevens warrants that it will perform its services in a professional manner in accordance with Appraisal industry standards. Marshall & Stevens makes no further warranty of any kind, express or implied. 10. Marshall & Stevens expressly limits its liability under any legal theory to the amount of the fee paid or $100,000, whichever is less. 11. Marshall & Stevens expressly disclaims liability as an insurer or guarantor. Any person seeking greater protection from loss or damage than is provided for herein should obtain appropriate insurance. 12. Hazardous substances, if present within a facility, can introduce an actual or potential liability that may adversely affect marketability and value. Such affect may be in the form of immediate expense or future liability. In the development of our opinion of value, no consideration will be given to such liability or its impact on value unless Marshall & Stevens is specifically retained to prepare an environmental or toxic contamination report. Unless such a report is prepared by Marshall & Stevens, client releases Marshall & Stevens from any and all liability related in any way to environmental matters. 13. Subject to the limitation allowed by Section 768.28, Florida Statutes, the client shall defend, indemnify and hold .\1\f,....II\11 '1 Monroe County February 8, 2010 Page 6 harmless Marshall and Stevens and its employees, agents or subcontractors against all third party claims and any judgements, losses, damages or expenses relating to the performance, or non-performance, of services by Marshall and Stevens, except for matters caused by Marshall & Stevens' gross negligence, recklessness, or willful misconduct. STE\U'~ 14. If Marshall & Stevens is requested or compelled to produce documents or testify with regard to the work performed, regardless of who makes such request, client shall reimburse Marshall & Stevens for all costs, including attorneys' fees, preparation and travel time, interview, deposition and court time and expenses, all at Marshall & Stevens then existing rates. 15. In the event of a dispute involving interpretation or performance under this agreement, the dispute shall be submitted to mediation. The mediation shall be conducted in the city in which the Marshall & Stevens' office servicing this agreement is located. The cost of the mediation shall be borne equally by both parties.