HomeMy WebLinkAbout1992-124
RESOLUTION NO. 92-124
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH MARSHALL & STEVENS, INCORPORATED,
TO PERFORM A PERPETUAL FIXED ASSET INVENTORY OF THE CITY OF SAN
BERNARDINO AND TO RECONCILE THIS INVENTORY TO ACCOUNTING POLICY
AND PROCEDURES.
SECTION 1.
The Mayor of the city of San Bernardino is
hereby authorized and directed to appoint on behalf of said City
an agreement with Marshall and Stevens, Incorporated, to perform
a perpetual fixed asset inventory for the City of San Bernardino
and to reconcile this inventory to accounting policy and
procedures, which is attached hereto marked Exhibit "A" and
incorporated herein by reference as fully as though set forth at
length.
SECTION 2.
The authorization to execute the above
referenced agreement is rescinded if the parties to the
agreement fail to execute it within sixty (60) days of the
passage of this resolution.
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZiNG THE
EXECUTION OF AN AGREEMENT WITH MARSHALL & STEVENS,
INCORPORATED, TO PERFORM A PERPETUAL FIXED ASSET INVEN-
TORY OF THE CITY OF SAN BERNARDINO AND TO RECONCILE THIS
INVENTORY TO ACCOUNTING POLICY AND PROCEDURES.
I HEREBY CERTIFY that the foregoing resolution was
duly adopted by the Mayor and Common Council of the city of San
Bernardino at a regular
meeting thereof, held on the 6th
day of
, 1992, by the following vote, to wit:
April
Approved as to form and
legal content:
JAMES F. PENMAN
city Attorney
By' \2Lc~
2.
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City of S Bdno Res 92-124 adopted 4/6/92
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A G R E E MEN T
THIS AGREEMENT is made and entered into this ~~ day of
fi\clM , 1992, by and between the CITY OF SAN BERNARDINO,
a munic{pal corporation, 300 North D Street, San Bernardino,
California 92418, (herein referred to as "city"), and Marshall
and Stevens, Incorporated, (herein referred to as "Consultant")
8 600 South Commonwealth, 7th Floor, Los Angeles, California
90005.
city and Consultant agree as follows:
1. General.
ci ty hereby
engages Consultant, and Consultant hereby
accepts such engagement, to perform services herein described
for the compensation herein provided. Consultant hereby assures
and covenants to city that they have the qualifications,
experience and facilities to properly perform said services, and
hereby agrees to undertake and complete the performance thereof
for the compensation herein provided.
2.
Term.
The term of this agreement shall commence on execution of
21 this agreement by both parties. The term of this agreement is
22 for the period of one (1) year, commencing from the date first
23 set forth herein.
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3.
Fee.
Fee
includes
production
and
professional
service,
processing, travel and living expenses. Fee is payable by the
Fixed Assets & Inventory
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November 5, 1991
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City as statements are submitted during course of the
engagement. Approximately 80% of the fee will be billed prior to
the delivery of the reports, with the balance due after delivery
as follows:
Buildinq site Improvements and Contents
Fixed Asset Inventory $41,000
Property Records Manual $ 3,000
Land $ 3,000
Tags (25,000) $ 3,500
4. General Description of Work to be Done.
Consultant hereby agrees to perform the following services.
A. Conduct a meeting with auditors for the City of
San Benardino to establish that our inventory conforms to
our capitalization policies.
B. Produce a fixed asset inventory of the city of
San Benardino's assets. This.inventory will include:
a. All equipment, buildings and improvements.
All equipment-type movable items to be tagged and
bar-code tagged by Marshall &
Stevens.
b. All city owned land.
C. Produce a final report which consists of fixed
asset inventory of the city of San Bernardino assets providing
for each capital asset as follows:
a. Fund
Fixed Assets & Inventory
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November 5, 1991
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b. Department
c. Account
d. Original Cost
e. Replacement Cost New
f. Year Acquired
g. Life
h. Equipment Code
i. Tag Number
j. Location Code
1. Description, plus make, model and serial
number
C. Produce a final report on a diskette or computer
tape that is readable by the city's computer system.
6. Reports bv Consultant.
Reports shall consist of insurable values of values
including assets by building location showing reproduction cost
new, insurable reproduction, . depreciated reproduction,
depreciated insurable value, and exclusions.
A computer report of assets by Department shall include
machinery and equipment by site, department fund, asset
description, including but not limited to: acquisition year,
estimated useful life, replacement year, original cost, and
current depreciation.
Reports of land by site, parcel, description, use
classification, acquisition date and original cost shall be
provided.
Fixed Assets & Inventory
November 5, 1991
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A magnetic tape or diskette containing a copy of O\1r
inventory will be supplied.
7. Amendments.
This agreement may be amended or modified only by written
agreement executed by both parties.
8. Assiqnment.
Consul tant' s rights under this agreement shall not be
assigned by Consultant to any other person, firm or corporation,
unless specifically authorized herein, without the prior written
consent of the city.
9. Attornev's Fees.
In the event an action is filed by either party to enforce
rights under this agreement, the prevailing party shall be
entitled to recover reasonable attorney's fees in addition to
any other relief granted by the court.
10. Terminated bv citv.
Notwithstanding any other provision of this agreement, the
City, by notifying in writing, may terminate all or a portion of
the services agreed to be performed under this agreement with or
without cause. Consultant shall be given five (5) days written
notice if termination is for other reasons. Notice shall be
mailed posted to the address set forth herein for the receipt of
notices. In the event of any termination, consultant shall have
the right and obligation to immediately assemble work in
progress and forward same to the city. All charges outstanding
at the notice of termination shall be payable by the City to
Fixed Assets & Inventory
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November 5, 1991
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Consultant within thirty-five (35) days following submission of
final statement by Consultant.
11. Acceotance of Final Pavrnent Constitutes Release.
The acceptance by Consultant of the final payment made
according to the terms of this Agreement shall operate and be a
release to the city, and every employee and agent thereof, from
all claims and liabilities to Consultant for anything done or
furnished relating to work or services, or for any act or
failure to act of the City relating to or arising out of work
and this agreement.
12. Insurance.
Consultant shall provide to city evidence of insurance
covering Consultant and City as an additional insured as to any
potential liability of Consultant or City arising out of
Consultant's activities pursuant to this Agreement. The
evidence to be provided shall be a Certificate of Insurance
describing the coverage provided, and naming the City as an
additional insured. The insurance shall consist of the
following:
(a) Workers' Compensation.
Consultant shall provide for all of its employees
pursuant to this agreement. Evidence of such
insurance shall be furnished to the Risk Management
Division prior to commencement of this agreement.
(b) Professional Liability Insurance.
Professional liability insurance covering the
Fixed Assets & Inventory
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November 5, 1991
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professional service provided by Consultant, including
coverage for professional errors and omissions in a
combined single limit of not less than $1,000,000 per
person.
13. Hold Harmless.
Consul tant hereby agrees to, and shall, defend,
indemnify and hold harmless City its elective and appointive
boards, commissions, officers, agents and employees, from any
liability for damage or claims for damage for personal injury,
including death, as well as from claims for property damage
which may arise from Contractor's agents or employees'
operations under this agreement. Contractor agrees to, and
shall, defend city, and its elective boards and appointive
boards, commissions, officers, agents and employees from any
suits or actions at law or in equity for damages caused or
alleged to have been caused, by reason of any of the aforesaid
operations, provided as follows:
a. That City does not, and shall not, waive any rights
against Contractor which it may have by reason of the
aforesaid hold harmless agreement, because of the
acceptance by City, or any of the insurance policies in
Paragraph 12 hereof.
b. That the aforesaid hold harmless agreement by
Contractor shall apply to all damages and claims for
damages of every kind suffered, or alleged to be suffered,
by reason of any of the aforesaid operations referred to in
Fixed Assets & Inventory
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November 5, 1991
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this paragraph, or regardless of whether or not such
insurance policies shall have been determined to be
3 applicable to any of such damages or claims for damages.
4 14. Notices.
5 Any notices required to be given hereunder shall be deemed
6 to have been given by depositing said notice in the united
7 States mail, postage prepaid, and addressed as follows:
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CITY
Rachel Krasney, City Clerk
City of San Bernardino
300 N. D Street
San Bernardino, Ca. 92418
CONSULTANT
Marshall and stevens, Inc.
600 S. Commonwealth, 7th Floor
Los Angeles, California 90005
15. Entire Aqreement.
12 This contract constitutes a portion of the Agreement
13 between city and Consultant. The original Proposal, dated
14 October 7, 1991, is attached as Exhibit "A", and incorporated
15 herein as though fully setforth hereat.
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Fixed Assets & Inventory
November 5, 1991
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1 IN WITNESS WHEREOF, this agreement has been executed by the
2 parties effective as of the date and year first above written.
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ATTEST:
R~~sn~rk
Approved as to form
and legal content:
JAMES F. PENMAN
city. Attorney .
By:~kJ-~,\)
C/
Fixed Assets & Inventory
CITY OF SAN BERNARDINO
Municipal Corporat'
the State 0 Cal' 0
<::::
Inc.
8
November 5, 1991
"'ARSHALL AND STEVENS
-::-aser<:: =~: .=~C~.=:'" :':':.~SLJ,:ar:s
October 7, 1991
:;00 S. CCmmOl"1\Ne81tn Aile.
=Ulte 700
'...os Anaeles. c.:.. 90005-4017
2~31 3-85-15~=
=AX r2131 366-8311
Mr. Andrew Green
Director of Finance
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
Dear Mr. Green:
Marshall and Stevens is pleased to present this proposal for appraisal and
consulting services. The purpose of these services is to provide a
perpetual fixed asset inventory to the City of San Bernardino to reconcile
this inventory to your accounting policy and procedures.
These services will include the following:
I) A meeting with your auditors to establish that our inventory
conforms to your capitalization policies.
3)
2) Produce a fixed asset inventory of the City of San Bernardino's
assets. This inventory will include:
o All equipment. buildings and improvements
o City owned land
All equipment-type movable items can be tagged with bar-coded tags
by Marshall and Stevens. These tags can be acquired by Marshall
and Stevens with the cost being added to your fee.
Our final report will consIst of a fixed asset inventory of City of
San Bernardino assets. providing for each capital asset' the
following:
o Fund
o Department
o Account
o Original Cost
o Reolacement Cost New
o Year Acquired
o life
o Equipment Code
o Tag Number (if applicable)
o Location Code
o Description. plus make. model. and serial number
Mr. Andrew Green
City of San Bernardino
October 7, 1991
Page two
4) Marshall and Stevens' fee for these services IS attached. All
invoices are due and payable on presen- tation and are subject to
carrying charges of 1 1/2% per month beginning one month from date
of original invoice. Collection costs including legal fees and
court costs, if needed, would be additional.
If the tagging options should be elected, the cost of the tags will be at
the most $3,500 for approximately 25,000 tags.
Enclosed are addendum which supply the following:
o A summary of key points.
o A detailed description of how our inventory and pricing will
be completed for the buildings.
o Some background information about Marshall and Stevens.
o Attached as well is a list of clients as requested and a
summary of answers to issues from your R.F.P.
We look forward to working with you on this important project.
Very truly yours,
MARSHALL AND STEVENS INCORPORATED
an~
Donald B. McDougall
Valuation Consultant
Government Services
DBM:dmz
SANBERNA:D
Enclosures
MARSHALL AND STEVENllINCORPORATED
DESCRIPl1VE SECTION
MARSHALL ana STEVENS Inco<llOnllecl
PROPOSAL
TO THE
CITY OF SAN BERNARDINO
FOR
FIXED ASSET INVENTORY
MARSHALL AND STEVENS INCORPORATED
TABLE OF CONTENTS
Pa~e No.
l. PROJECT OBJECTIVES 1
II. PROJECT SCOPE 2
III. PLANNING. 3
IV. BUILDINGS AND IMPROVEMENTS (Other than buildings) 4
V. MACHINERY AND EQUIPMENT 8
VI. LAND 12
VII. LICENSED VEHICLES. MOBILE EQUIPMENT
AND MINOR EQUIPMENT 13
VIII. REPORTS 13
IX. FEE AND DELIVERY 15
X. GENERAL 16
XI. ANNUAL VALUATION SERVICE 17
XII. ACCEPTANCE 18
MARSHAU. AND STEVENS INCORPORATED
I. PROJEcrIVE OB.TEcrIVE
The proposed service will assist the City of San Bernardino to
establish a Fixed Asset Management System which will provide
information for: ~
A. FINANCIAL REPORTING
1. Materiality Disclosure (Ref: Disclosure Guidelines for
Offerings of Securities by State and Local Governments -
GFOA)
2. Audit Compliance (Ref: AlCA. NCGNGAAFR)
3. GFOA Certificate of Excellence
B. COST ACCOUNTING
1. Rate Setting
2. Program Cost Recovery (Ref: 74-4)
C. CAPITAL EXPENDITURE PLANNING
1. Budget Request Substantiation
2. Capital Asset Improvements and Replacement Forecasting
D. INSURANCE REOUIREMENTS
1. Total Insurable Value
2. Specific Values
3. Coinsurance Compliance
4. Proper Rating
5. Proof of Loss Assistance
6. Perpetuation of Insurable Values
E. ACCOUNT ABILITY AND CONTROL
1. Responsibility and Custodianship
2. Operational Efficiency
II. PRO.JECf SCOPE
A. Marshall and Stevens will implement a compre- hensive Fixed Asset
Management System which will provide a verified record of all
included fixed assets.
M"RSI'Il" AND STEVENS INCCRPORATED
II. PROJEcr SCOPE (rontinued
B. Marshall and Stevens will provide an Inventory, costing,
valuation and the preparation of property accounting records
covering buildings, improvements other than buildings, machinery
and equipment, and land and underground.
Assets or locations not specified therein could be induded upon
your specific authorization at an additional fee.
C. Land parcels, licensed vehicles, formulators and mobile equipment
will be included on the basis of data to be provided by City
personnel. Marshall and Stevens will provide the forms and
mstructions needed to complete them.
A property records search is an option you may select.
D. The system can be computerized and installed on Marshall and
Stevens' computer for report processing. The Master File will be
the City's property and will be available at any time the City IS
in a position to process at its own computer facility.
E. Based on our prior experience. and our present understanding of
your requirements. the major steps in the implementation of your
Fixed Asset Management System would be:
1. Project Planning (The Work Plan)
2. Inventory of Fixed Assets
3. CostinglValuation
4. IJfmg/Coding
j. Data Review
6. Data Processing
7. Annual Valuation and Consulting Services for Perpetuation of
the System. if required.
III. PL.c\.NNTNG
A. PLANNING
1. A project of this size and complexity requires thought and
planning to assure success. It is essential that the
project have the support and commitment of all Department
heads at the outset since it will require coooeration and an
investment of their time. ..
M/O~all AND STEVENS JNCDRPDAATED
III. PLANNING (continued)
A PLANNING (continued)
2. However. the investment m time should be minimal. limited
to the assemblage of cost records and construction and
engineering data and the providing of access to areas to be
included.
3. It is essential that one person be appointed to head the
project for the City before co=encement of anv work and
that a person be designated to continue the System after
completion of the initial project. The appointee must have
knowledge of property accounting.
B. JOINT PLANNING
1. Our Project Manager would meet with you to finalize our
property accounting principles and prepare a detailed work
plan:
a. Review asset accounting procedures. depreciation
convention and method, useful life assIgnment
procedures and set a cutoff date for inventorY and
costing. .
b. Review cost centers and chart of accounts and funds.
c. Define codes to be used in the System.
d. Review available cost records.
e. Review the work schedule and establish procedures to
gain access to security areas. locked rooms and to
other areas where prior arrangements are required.
f. Arrange for staff working space.
2. During the Planning Stage, pre-established report data will
be reviewed:
a. Content and format of input documents, i.e.. inventory
and property accounting source forms.
b. The content of final property accounting and Insurance
reports.
IV. BillLDINGS AND IMPROVEMENTS OTHER THAN BillLDINGS
A. INVENTORY
1. Documentation: Experienced and qualified appraisers of
Marshall and Stevens' consultant staff will personally
inspect. describe and compute measurements and areas of all
buildings and improvements other than buildings.
MARSHALL AND STEVEI\IS INCaRPOrlATm
IV. BUILDINGS AND IMPROVEMENTS OTHER THAN BUILDINGS (continued)
A INVENTORY (continued)
Building components (listed below) will be individually
analyzed.
a. Basic Structure
Site Preparation
Foundation
Frame
Exterior Walls
Floor Structure
Roof Structure
Roof Cover
Fire Protection
Attached Exterior Construction
b. Interior Construction
Interior Construction
Ceiling
Floor Covering
c. Buildinl! Service Eauioment
Plumbing
Electrical
Heating, Ventilating & Air Conditioning
Elevators
Improvements other than buildings generally consist oi:
a. Parking and exterior lightings
b.
Mis ce lIa n e 0 us S t ructu re s
stations. etc.
sheds. loading
2. Data to be recorded will include types of construction.
dimensions. appurtenances, occupancy ano use. and insurance
amounts.
B. ORIGINAL COST RECORD/ACCOUNTING
1. To establish the necessary cost record for accounting,
auditing and financial reporting purposes. Marshall and
Stevens will establish an original cost record based on
acquisition cost and date for each building and improvement
other than buildings. Cost generally include:
MARSHALL AND STEVENS INCORPORATED
IV. BUILDINGS AND IMPROVEMENTS OTHt:K THAN BUILDINGS (continued)
B. ORIGINAL COST RECORD/ACCOUNTING (continued)
a. ConstrUction cost (or allocated purchase)
b. Fixed equipment costs
c. Architect's fees
d. Inspection and other fees
e. Cost of permits and licenses
f. Applicable sales tax
g.
Insurance and interest during construction. if
applicable
h. Other incidental expenses
2.
Original costs will be assigned on the basis
records, provided that they are readily available.
sources may be available:
a. General Ledger. audits and other financial records
b. Architect's request for payment documents
c. Project files
d. Reports issued to agencies such as HUD
e. Inventory files. cards
f. Maintenance records
g. Purchase orders and invoices
of City
Various
h. Capital improvement budgets
3. If the appropriate original cost data is not readily
available or cannot be provided as described above. the
normal original cost will be established by Marshall and
Stevens using the following method:
a. Determine current Reproduction Cost New and apply
reverse cost trends to the date of acquisition.
Ml'RSHI'" AND STEVENS INCORPOPATED
IV. BUILDINGS AND IMPROVEMENTS OTHER THAN BUILDINGS (continued)
B. ORIGINAL COST RECORD/ACCOUNTING (continued)
4. An estimate of the Total Useful Life of each building or
improvement will be made. This estimate. together with the
estimated date of acquisitions. will be the basis for the
ratio of expired life to remaining life to provide the
depreciation reserves to date for applicable funds. In
arriving at our opinion of Total Useful Life, consideration
will be given to:
a. The type, character and reasonable life expectancy
under past and projected operating conditions relative
to the designed use;
b. Functional obsolescence and developing technology;
c. External obsolescence and developing economic
conditions in relationship to the use of the
facilities;
d. The City's history, policies or plans regarding
capitalization of maintenance, major repairs or
replacement of facilities.
C. CODING
1. The following codes will be assigned to buildings and
improvements other than buildings when supplied to our
Project Manger by the City at the belrinnim! of this proiect:
a. Site Designations
b. Building Number
c. Departments
d. Funds
e. Accounts
2. This data must be furnished by the City in schedule form.
D. CURRENT V ALUA TION
1. Current Reproduction Cost New information is required for
(1) adequacy of property insurance coverage. (2) capital
expenditure planning for replacement. and (3) maintenance
decisions.
MARSHALL AND sn:vENS INCORPORATED
IV. BUILDINGS AND IMPROVEMENTS OTHt:K THAN BUILDINGS (continned)
D. CURRENT VALUATION (continued)
2. Marshall and Stevens will utilize the following valuation
procedures:
a. Reproduction Cost New - Each building and improvement
other than building will be valued at Reproduction Cost
New. Consideration will be given to labor material
costs in the local area to replace the property in
like, kind and quality, plus the indirect costs for
architect's and engineers' fees, inspection fees,
licenses, applicable sales tax, insurance and other
incidents.
b. Depreciated Reproduction Cost - Physical deterioration
and functional and external obsolescence, relevant for
insurance purposes, will be observed and deducted to
arrive at Depreciated Reproduction Cost.
c. Exclusions and Insurable Values - In computing
Insurable Values, the value of items specifically
excluded from coverage in accordance with your present
insurance policy will be deducted to arrive at
Insurable Value. A copy of the current property
insurance policy must be provided to Marshall and
Stevens by the City prior to the start of the project.
V. MACmNERY AND EOUlPMENT
A. INVENTORY PROCEDURE
1. Verification: Experienced and qualified members of the
professional staff of Marshall and Stevens will conduct a
field inventory of machinery and equipment owned bv the
City. The assets will be listed by building and departrnent
of use in one of the following categories:
a. Capitalized EQuioment - Individual Control
Those equipment items (1) which can be identified by
manufacturer. model and serial number and, as such, are
identified from other like items: (2) have a unit
original cost of $300 or more and (3) have a useful
life in excess of one year, will be listed
individually.
Generally, this classification includes business
machines, major machinery and equipment. audiovisual
equipment. lab equipment, communications equipment and
maintenance equipment.
MARSHALL AND STEVENS INCORPORATED
V. MACHINERY AND EOUIPMENT (continued)
A. INVENTORY PROCEDURE (continued)
b. Caoitalized Eauioment - Grouo Control
Those equipment items (1) which are homogeneous and not
individually identifiable, (2) mayor may not have a unit
cost of $300 or more but the Citys' practice is to purchase
in groups and capitalize the total group cost and (3) have
an average group life in excess of one year, will be listed
by homogeneous grouping by each year capitalized within each
department location or fund. All furniture will be in this
category.
c. Minor Eauioment - Noncontrollable
Those equipment items which are expensed for accounting
purposes only will be grouped by building and department
with a general description of the group.
Generallv, this classification includes miscellaneous office
accessories, tools, shop general equipment and minor lab
items.
B. TAGGING
1. Should the City desire, Marshall and Stevens can place tags
on aU physically inventoried equipment. The cost of the
tags would be additional to our proposed costs and should
not exceed $3,500 we would recommend 25,000.
C. ORIGINAL COST RECORD/ACCOUNTING
1. To establish the necessary cost record for accounting,
auditing and financial reporting purposes. Marshall and
Stevens will establish an original cost record based on
acquisition cost and date for each individual machine or
capitalized group. Costs generally include:
a. Purchase or assembled cost
b. Freight and installation
c. Applicable sales tax
2. Original costs will be assigned on the basis of City records
provided that they can be furnished at a centralized
location assembled by year acquired and by depanment of
responsibility.
MJlRSHAU AND STEVENB INCllRPORATED
v. MACHINERY AND EOUIPMENT (continued)
D. CODING (continued)
2. In addition, Marshall and Stevens will apply its
Classification Codes to the following classes of property to
provide increased information retrieval for special purpose
reportS.
a. Office Machines and Equipment
b. Office Furniture and Fixtures
c. Machinery and Equipment
d. Communication Equipment
e. Non-Licensed Vehicles
f. Licensed Road Vehicles
E. CURRENT VALUATION
1. Current Reproduction Cost New information is required for
(1) adequacy of property insurance coverage, (2) capital
expenditure planning for replacement, and (3) maintenance
decisions.
2. Marshall and Stevens will utilize the following valuation
procedures:
a. Reoroduction Cost New - Each item or group of
capitalized equipment and each group of expensed
equipment will be valued on the basis of Reproduction
Cost New.
b. Deoreciated Reoroduction Cost - Physical deterioration
and functional relevant for insurance purposes will be
observed and deducted to arrive at Depreciated
Reproduction Cost.
c. Exclusions and Insurable Values - In computing
Insurable Value, the value of items specifically
excluded from coverage in accordance with your present
insurance policy will be deducted to arrive at
Insurable Reproduction Cost and Depreciated Insurable
Value.
VI. LAND
A. Marshall and Stevens comoleted a title survev of land within the
boundaries of the City and market value study of a few years ago.
Based on this study and years of acquisition supplied by the
City, Marshall and Stevens can estimate this original cost at
each parcel. MARSHALL AND STEIIENIIIM...K..,)AATED
VI. LAND (continued)
This option will supply values for each parcel. as prescribed by
the G.F.OA
VII. LICENSED VEHICLES. MOBILE EQUIPMENT AND MINOR EOUIPMENT
A. licensed vehicles. mobile equipment and minor equipment such as
mobile communication equipment should be included in the Fixed
Asset Management System for insurance and accounting purposes as
applicable.
B. Due to the mobility of these assets, they are very difficult to
inventory. For this reason, we will rely on listings provided by
the City. We will spot check these lists and we will be
responsible for data entry into the Fixed Asset Management
System.
vm. REPORTS
A. Three complete sets of the original report will be furnished to
the City, consisting of:
1. An appraisal certification specifying the date and purpose
of our report.
Z. A general description of the assets included, techniques
used to gather data and prepare reports and definitions of
the terminology and codes used in the reports.
3. A summarY of the insurable values of included assets by
building location and in total for the City showing:
a. Reproduction Cost New
b. Insurable Reproduction Cost
c. Depreciated Reproduction Cost
d. Depreciated Insurable Value
e. Exclusions
4. A computer generated report of assets by Department which
displays for each asset or group of assets:
a. BUll.DINGS. IMPROVEMENTS OTHER THAN BUILDINGS.
MACHINERY AND EQUIPMENT
1. City
2. Site Designation
IWlRSHALL AND snvENS INCORPORATED
VIII. REPORTS (continued)
3. Building No.
4. Depanment
5. Fund
6. Oass Code
7. Asset Description
(Model No., Serial No.,Manufacturer when available
on asset)
8. Asset No. (Computer Assigned)
9. Quantity
10. Acquisition Year
11. Estimated Useful life
12. Replacement Year
13. Reproduction Cost New
14. Original Cost
15. Unrecovered Cost
16. Current Year Depreciation
17. Account
b. lAND (as provided)
1. Site
2. Assessor's Parcel No.
3. Description - Size. Lot, Block. Tract
4. Use Oassification
5. Acquisition Date
6. Original Cost
7. Asset Number
8. Account
9. Department
MARSH"" AND STEVENS INalRPORATED
VIII. REPORTS (continued)
c. A magnetic tape or diskettes contammg a copy of our
inventory can be supplied as part of this assignment.
IX. FEE AND oELIYERY
A Our fees for services as described above are as follows:
Buildinl!: Site Imorovements and Contents
Fixed Asset Inventory
Property Records Manual
Land
Tags (25,000)
$41,000
$ 3,000
$ 3,000
$ 3,500
This fee includes professional services rendered. production and
processing, and travel and living expenses. The fee would be payable
by the City as statements are submitted during the course of the
engagement. Approximately 80% of the fee will be billed prior to
delivery of the reports, with the balance due after delivery.
B.
This fee is guaranteed for a period of 90 days.
point we reserve the right to revise the fee
escalating costs of personnel. travel and living expenses.
Bevond this
based upon
X. GENERAL
A
All field notes and working papers prepared as a part of this
engagement will remain on file with Marshall and Stevens for a
period of five years after delivery of our reports. They will be
available for reference should the City be challenged to
substantiate an insurance claim or if needed in an audit of
property accounts.
A reconciliation will not be made between the results of this
project and existing financial statements of the City due to the
prior lack of recording retirements and the possibility of
unrecorded additional through the years.
After the Master File of Asset Data has been compiled. Marshall
and Stevens' Computer Center could supply a variety of special
purpose detailed or summary reports which could be obtained in
advance as required.
B.
c.
Typical Master File Data would include:
1. Location Data
*Site
*Building
*Department
MARSHALL AND STEVENS INCORPORATED
X. GENERAL (continued)
Descriptive Data
· Asset Number
. Asset Oass
· Asset Description
3. Financial Data
.,
· Fund
· Account
Quantity
Acquisition Cost
· Anticipated Replacement Year
Reproduction Cost New
Insurable Reproduction Cost
Depreciated Reproduction Cost
Depreciated Insurable Value
Depreciation Reserve
Unrecovered Cost
Current Year Depreciation
D. All records, costs and values will be prepared as of a current
date.
XI. ANNUAL VALUATION SERVICE AND REPORTS
A. While the initial service proposed herein will provide an
up-to-date property accounting record and valuation of the
included assets as of a specific date. they become inaccurate
unless the original data is kept current.
B. The Annual Valuation Service keeps your reports up-to-date on an
annual basis.
1. ProoertY Accountinl! Records
Building and equipment changes. including additions.
retirements and transfers are reflected in the annually
updated property accounting reports. Current depreciation
changes are calculated for Enterprise and Internal Service
Funds.
2. Insurance Records
Fluctuations in Reproduction Cost New of property in
existence plus the efforts of additions. retirements and
transfers are calculated to indicate the proper amount of
insurance coverage required. Accurate records provide a
basis for proof of loss.
MARSHALL AND STEVENS 1N.........,oUlTED
XI. ANNUAL VALUATION SERVICE AND REPORTS
C. The Annual Valuation Service is a cooperative servIce. City
personnel will provide us with the details of additions.
retirements and transfers on forms which we will supply, along
with an Instruction Manual. Marshall and Stevens will process
this data to provide updated annual reports similar to the
initial reports.
XII. ACCEPTANCE
This proposal is submitted in duplicate. You may signify your
acceptance by endorsing one copy and returning it to my attention.
The assignment will be scheduled and you will be contacted by our
Project Manager within a timely period.
Thank you for the opportunity to present this proposal to the City of San
Bernardino.
We look forward to working with you in this important project.
Very truly yours,
MARSHALL AND STEVENS INCO ORATED
I~~
DONALD B. McDOU
Valuation Consultant
Government Services
DBM:dmz
SANBERNA:D
ACCEPTED BY:CI1Y OF SAN BERNARDINO
Signature:
Typed Name:
Title:
Date:
MARSHALL AND STEVENS INCDRPDRATED
SPECIFICATIONS FOR MARSHALL AND STEVENS
PROPERlY RECORD SERVICE
I. MARSHAll AND STEVENS INCORPORATED agrees to furnish the following
services to: City of San Bernardino
A ANNUAL SERVICE: At annual intervals, as of the close of your
fiscal year.
ADDmONSREPORT
TRANSFER REPORT
DELETION REPORT
DEPARTMENT WIT1llN FUND SUMMARY
COST
DEPRECIATION RESERVE
UNRECOVERED COST
CURRENT YEAR DEPRECIATION
ACCOUNT WITI-IIN FUND SUMMARY
COST
DEPRECIATION RESERVE
UNRECOVERED COST
CURRENT YEAR DEPRECIATION
DETAILED PROPERTY LEDGER
INSURANCE SUMMARY
The reports will be processed, based upon:
1.
The initial property record report of the assets prepared by
Marshall and Stevens.
2.
Subsequent data regarding additions. retirements. transfers
or other changes to the property, submitted by you.
Reporting forms and instructions will be provided by
Marshall and Stevens.
(Changes and/or additions in excess of 10% of the total cost
of the property in anyone year must be verified by Marshall
and Stevens' personnel. Time requirements for field
verifications will be billable at standard per diem rates
plus expenses, in addition to the basic retainer fee.)
MMlSHI'" AND STEVENS INCORPORATED
SPECIFICATIONS FOR MARSHALL AND STEVENS
PROPERlY RECORD SERVICE
(Continued)
3. Analysis and application of price adjustment and
depreciation factors for insurance purposes.
B. CASUALTY LOSS SERVICE: In the event of a casualtv loss.
assistance will be rendered to establish a basis for a "Proof of
Loss" claim including:
1. Consultation regarding any reports that may be required.
2. Preparation of a report covering the "loss area" providing
insurable values as of the loss date; and/or if required,
furnish a revised summary of all property covered by this
service agreement.
3. Reasonable consultation with adjustors in valuation
matters. If prolonged consultation with adjustors or court
testimony is required, a fee will be charged based upon our
standard per diems. plus expenses.
II. RETAINER FEE: The retainer fee, payable annually to Marshall and
Stevens, will be $4,500 of the original appraisal fees. The retainer
fee will be payable one year in advance of the report date and it will
cover all standard services and report processing described herein.
III. ADJUSTMENT: This agreement may be discontinued or service and fee
adjustments made at annual intervals upon written notice to either
party.
MMlSHALL AND STEVENS INCORPORATED
ADDENDUM
A
In vour RFP there were several issues which we feel are important to you.
While these issues are addressed in our proposal, they are given special
consideration in this section of our proposal.
Marshall and Stevens is a stable, profitable and growing firm. We have been
supplying services to Cities since 1932. Our original MSFAMS software was
the basis for GFOA (then MFOA) fixed assets requirements. Our fixed asset
surveys are still an integral part of the "Certificate of Excellence."
Manpower
Ms. O'Neil's qualifications are attached and she has personally worked with
the Cities of Oxnard and Palmdale, both referenced as clients of ours.
Ms. O'Neil's staff consists of over a dozen public sector specialists. To
supply all of their professional qualifications would be voluminous
EDP
The qualification of Ms. Mary Lynn Pointier is also enclosed.
Ms. Pointier is our Corporate Director and Vice President of Management
Information Systems and has designed fixed asset systems for both PCs and
mainframes. She is familiar with most all of the current commercially
available fixed asset software packages.
Our corporate data processing center is in Los Angeles.
We have no problems meeting your insurance requirement.
Comoanv Exoerience
Arlene O'Neil and I have been working at Marshall and Stevens Incorporated
as a team since 1984 and have proved services to hundreds of public
entities. This element of stabihty is one of Marshall and Stevens'
greatest strength. We have not changed names or companies. We have the
staff, all full-time employees, to do this job. We will be there for the
City of E1 Segundo five or ten years from now, should you need our
assistance to support a loss or update your inventory.
The references attached are all for fixed asset inventories, all with
parameters similar to yours.
If you should have any questions, please give me a call at (213) 385-1515.
M4RSHjlLL AND 5TEVENlIINCDRPORATm
REFEREJliCES
City of Oxnard
City of Santa Monica
City of Palmdale
City of BarstoW
City of Culver City
Orlando Capulong
Louise Baker
Bill Ramsey
Evelyn Randel
Don Perlick
Additionally, we have previously provided the following services to the City
of San Bernardino.
1. Determination of Original Cost on all city owned construction.
2. Valuation of all construction for insurance purposes.
3. Valuation and identification of City owned land, we discovered over
200 parcels, many unknown to the City.
MARSHALL AND STEVENS INCORPORATED
ADDENDUM
B
All of the senior and middle level management involved 10 this project have
been employed by Marshall and Stevens for five or more years.
The qualifications of these senior staff are attached.
Certificates of Insurance for both Workers Compensation and Errors and
Omissions will be supplied upon authorization for Marshall and Stevens to
proceed, we have in the past supplied this information to your City's Risk
Manager.
MARSHAll. AND STEVENS INCDRPORATED
ADDENDUM
C
In reVlewmg your R.F.P, there are several questions which we have answered
below, while the answers are contained throughout the body of our proposal
it seemed appropriate to su=arize them here.
1. We will supply a special report to meet your Insurance
requirements.
2. We can work with Dames and Moore to meet specific requirements for
a Seismic Loss Study, saving money for your City.
3. Our update fees will not increase by more than 10% over the next
six years unless major additions or a reappraisal is needed.
4. Marshall and Stevens provides and produces our own tags, there will
be no problem in delivery or quality control.
MARSHALL AND sn:vENS INCORPORATED
?ROPERTY SCHEDt:LZ ,..~~'f :F SAN 3ERNAD::::m
Dowm::own Center
DESCRIPTION
CITY HALL
CONVENTION CENTER
DOWNTOWN GARAGE
POLICE HEADQUARTERS
SENIOR CITIZENS BLDG.
CENTRAL LIBRARY
CENTRAL CITY PARKING
CENTRAL MALL
City Yard
DESCRIPTION
BLDG. ;100
BLDG. #101
BLDG. #102
BLDG. nOJ
BLDG. H14
BLDG. H1J
BLDG. #1H
BLDG. #104
BLDG. H05
BLDG. #106
BLDG. H07
BLDG. H09
BLDG. H08
COVERED STORAGE
BLDG. H10
BLDG. #112
BLDG. #H5
BLDG. H16
BLDG. #118
BLDG. H19
. .
. P".OPERTY .3CHEDlJLZ::::Y :F SAN 3ERNAD:::~10
Cultural Cant:er
DESCRIPTION
CULTURAL CENTER
ANNEX
Center For Individuals With Disabil~ties
DESCRIPTION
MULTI-PURPOSE ELDG.
NORTH NORTON ELDG.
Animal Cont:rol
DESCRIPTION
OFFICES
FEMALE KENNEL
FELINE
KENNEL
KENNEL
City cemet:ery
DESCRIPTION
TOOL ROOM
LUNCH/RESTROOM
?ROPERTY SCHEDCLZ
""~-~,
:: SAN 3ERNADI~IO
OFncz
villasenor Library
DESCRIPTION
LIBRARY
Fire Station H
DESCRIPTION
FIRE STATION
Fire Station #2
DESCRIPTION
FIRE STATION
Fire station #3
DESCRIPTION
FIRE STATION
?ROPERTY SCHEDt:LZ :::-.': :F SAll 3ERNADI~la
Fire Station :j4
DESCRIPTION
FIRE STATION
DRILL TOWER
Fire Station #5
DESCRIPTION
FIRE STATION
Fire Station #6
DESCRIPTION
FIRE STATION
Fire station P
DESCRIPTION
FIRE STATION
SITE TOTALS
':ore""'''"'''!
r" . --.. -
i
SC!-!E::'::.z
"'"--~~
--.... - ....'"
'0;'1. 3ERNADINO
Fire Sta1:ian :8
DESCRIPTION
FIRE STATION
Fire Station #9
DESCRIPTION
FIRE STATION
Fire Station #10
DESCRIPTION
FIRE STATION
Search & Rescue
DESCRIPTION
SEARCH & RESCUE
Comm. Maintenance
?ROPERTY SCHEDULE C:~y OF S~~ 3ERNADI~O
DESCRIPTION
COMM. MAINTENANCE
F. D. MAINTENANCE
Wildwood Park
DESCRIPTION
MELTON CONCESSION
CONCESSION/ANNOUNCERS
RESTROOM
PICNIC SHELTER/STORAGE
RESTROOM
DOTY CONCESSION
DOTY RESTROOM
Harrison canyon Park
DESCRIPTION
MAINTENANCE BLDG.
Horine Park
DESCRIPTION
RESTROOM
,
r"'OPE?T'!
-..........J'--'O'..... -
~\-...:..;....... ~
:.F S;Jl 3ERliAc::rO
Patt=n Farm Park
DESCRIPTION
BARN H
BARN :I 2
BARN #3
BARN :14
perris$ Hill Park
DESCRIPTION
POOL BLDG.
CERAMICS
PUMP & BOILER
CONCESSION
STORAGE
RESTROOM
ROOSEVELT BOWL
RESTROOM/STORAGE
TENNIS PRO SHOP
CODDINGTON LIBRARY
HORSESHOE
PREVENTION
AGAPE HOUSE
PISTOL RANGE
RANGE STORAGE
FISCALINI FIELD
FIELD CLUBHOUSE
Blair Park
DESCRIPTION
i PROPERTY .3CHEDt:LZ ::::':''"! 'JF s.:u'l 3ER."'lAD!~IO
RESTROOM
ELECTRICAL 3LDG.
CONCESSION/ROOM
JAHNZ ANNOUNCERS
BARTHA ANNOUNCERS
ANNOUNCERS BOOTH
Delmann Heights Park
DESCRIPTION
NEIGHBORHOOD CENTER
POOL BLDG.
CONCESSION/RESTROOM
Hudson Park
DESCRIPTION
RESTROOM
Anne Shir=els Park
site 28
DESCRIPTION
RESTROOM
RESTROOM/CONCESSION
Nicholson Park
FROPERT~ SCHEDU~
,....--..,
JF SAJ.'l 3ERNADI~iO
DESCRIPTION
RESTROOM
ANNOUNCERS/CONCESSION
FORCE FIELD CONCESSION
CLUB HOUSE
Seccombe Lake Park
DESCRIPTION
IRS BLDG.
CONCESSION/RESTROOM
GAZEBO
PUMPHOUSE
ELEc:'RICAL BLDG.
Meadowbrook Park
DESCRIPTION
HERNANDEZ COMM. CENTER
RESTROOM
Nunez Park
DESCRIPTION
COMM. CENTER
RESTROOM
t<'ROPERT'! SC:-{ESULZ -~~., ::- SAlI aERNADI~10
,
RESTROOM/CONCESSION
SNACK BAR
RESTROOM/STORAGE
Encanto Park
DESCRIPTION
BOY'S CLUB
RESTROOM/CONCESSION
SCORERS
Lytle Creek Park
DESCRIPTION
COMMUNITY CENTER
STORAGE
RESTROOM
RESTROOM
STORAGE
Newark Park
DESCRIPTION
CONCESSION
STORAGE
::" '...... .....;.~.,.,~,
~:<'\.J.t'_.;\...._
SCHEDULE:
:::-:: :F ~..:..ll
3ER.'lAD:~10
Jel 7alle]o Recreac:on Area
DESCRIPTION
ANNOUNCERS BOOTH
RESTROOM
Del Rosa Little League
DESCRIPTION
CONCESSION/ROOM
STORAGE
Highland Baseball Park
DESCRIPTION
NO. RESTROOM/CONCESSION
NO. SCORES #1
NO. SCORES #2
SO. RESTROOM/CONCESSION
SO. SCORES #3
SO. SCORES #4
SO. ANNOUNCERS
(HUCKABAA)
Guadalupe field
DESCRIPTION
?ROPERTY SCHEDULZ
--......f
:F SAN aERNADINO
CONCESSION/RESTROOM
Winstead Park
DESCRIPTION
CONCESSION
Palm Field
DESCRIPTION
CONCESSION
Johnson Hall Recreation Center
DESCRIPTION
JOHNSON HALL
MeadoWbrook Recreation Center
DESCRIPTION
BOXING CENTER
RESTROOM
?E~PtRTY SCHEDU~ ::~y :F S~~ BERNADINO
Mill Cen-cer
DESCRIPTION
ADMINISTRATION
CAFETERIA
CLASSROOM
KINDERGARTDl
CLASSROOM
RECREATION CENTER
STORAGE
TRANSFORMER
POOL BLOG.
SITE TOTALS
Neighborly Services
DESCRIPTION
CLASSROOM BLOG. #1
CLASSROOM/RESTROOM
BLOG. #2
.Junior Foo-cball
DESCRIPTION
RESTROOM/DRESSING
Garden Paper - 181 s. G Stree-c
. .
lPROPERTY SCHEDULE
:::'~
JF 3N~ BERNADINO
DESCRIPTION
LIBRARY
Patton Park
DESCRIPTION
RESTROOM
senior Citizens Center - 780 E. 21st S
DESCRIPTION
SENIOR CITIZENS CENTER
sturgis Auditorium
DESCRIPTION
AUDITORIUM
GAZEBO
Fire station - 450 VanderDuilt~ay
DESCRIPTION
. .
?ROPERTY SCHEDULE :::~ :F SAN 3ERNADINO
DESCRIPTION
WAREHOUSE
OFFICE
Gallo Flowers - 1505 Waterman
DESCRIPTION
RENTAL STORE
Golden Valley Medical supply
DESCRIPTION
FORMER FIRE STATION
Employment & Training
DESCRIPTION
OFFICES
Rowe Library
.. "I '"
. , .
. Pr'.OE"ERTY SCHEDULE :::"! OF SAN EERNAODIO
FIRE STATION
La Plaza Park
OESCRIP1'ION
RESTROOM
PERGOLA