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HomeMy WebLinkAbout5.357 Original ContractSeptember 19, 1994 City of Port Angeles c/o City Clerk P.O. Box 1150 321 East Fifth Street Port Angeles, WA 98362 Asset Valuation Services S. 7 Re: Fixed Asset Inventory and Appraisal Asset Valuation Services, Inc. appreciates the opportunity to submit our proposal for inventory and appraisal services to the City of Port Angeles. The stated purpose of the proposed service is to provide the City of Port Angeles with an appraisal of it's fixed assets to meet management and financial reporting requirements, cost accounting, capital expenditure planning, insurance placement and proof of loss substantiation, and accountability and control. Our proposal is based upon the information included within the City's Request for Proposal, and our meeting and discussions with City staff relative to the information available within the various departments. Asset Valuation Services specializes in appraisal and consulting services to public sector entities to assist them in establishing and maintaining their fixed asset records and insurable values. We look forward to working with you on this important project to provide the highest quality appraisal service available. The contact person for this engagement will be Per Vaaga. Mr. Vaaga can be reached at (206) 364 -6624. If you have any questions regarding the attached proposal or require further explanation of any portion within, please contact me. Sincerely, ASSET VALUATION SERVICES, INC. JI Per R. Vaaga President PRV /cb PO Box 5154 Lynnwood, Washington 98046 -5154 206- 364 -6624 PROPOSAL FOR FIXED ASSET APPRAISAL SERVICES TO THE CITY OF PORT ANGELES PORT ANGELES, WASHINGTON September 19, 1994 TABLE OF CONTENTS Page QUALIFICATIONS 1 PURPOSE AND OBJECTIVES OF THE APPRAISAL 2 GENERAL SCOPE OF WORK 3 A. PROPERTY TO BE INCLUDED 3 B. PROPERTY TO BE EXCLUDED 4 C. PROJECT PLANNING 4 D. TAGGING 4 E. REPORTS 5 F. SAMPLE REPORT 6 G. DATA CONVERSION 6 H. TRAINING 6 I. PROPERTY MANUAL 7 TECHNICAL APPROACH 7 A. COSTING VALUATION METHODOLOGY AND PROCEDURES 7 B. APPLICATION OF METHODOLOGY AND PROCEDURES 9 C. INVENTORY PROCEDURES 10 1. Land 2. Buildings /Structures 3. Improvements Other Than Buildings 4. Machinery and Equipment D. INFORMATION INCLUDED 11 BAR CODE HARDWARE AND SOFTWARE 12 TREND FACTORS 12 STAFFING FEES 13 TIMING 13 GENERAL INFORMATION 14 FEE AND PAYMENT SCHEDULE 15 AUTHORIZATION FOR SERVICE 16 ADDENDA A. PROPERTY LOCATIONS TO BE APPRAISED B. QUALIFICATIONS OF PERSONNEL C. REFERENCES D. APPRAISAL TIMETABLE GAANT CHART E. BAR CODE SCANNER HARDWARE SPECIFICATIONS QUALIFICATIONS PROPOSAL FOR FIXED ASSET APPRAISAL SERVICES TO THE CITY OF PORT ANGELES Asset Valuation Services, Inc. was formed in June, 1992, and incorporated in August, 1992. The company currently specializes in and performs public sector fixed asset appraisals and consulting services. The company is a small, Pacific Northwest owned firm that takes a "hands -on" approach to each client. Our goal is to make sure that each client is 100% satisfied. Between the management and appraisers performing the work, we have consulted and /or worked with hundreds of public sector clients, including cities, counties, public utility districts, water districts, fire districts, schools and colleges. The management team and appraisers to be utilized during this engagement will be comprised of: I, Per Vaaga, President of Asset Valuation Services, will be responsible for overall project management. I will be conduct the project planning and inventory exit meetings, provide off -site supervision of all appraisal activities and be responsible for training City personnel in procedures for the continuation of the system upon completion. I have worked in the appraisal industry since 1977. My responsibilities have included overseeing the marketing, appraisal and production for Asset Valuation Services, as well as for national appraisal firms. I have performed complete project management of major engagements, as well performed appraisals for insurance, fixed asset and real estate purposes throughout the Northwest. Mr. John Kruzinski, A.S.A. will perform the inventory and appraisal of the City's assets, with the exception of the Light Fund/Electric System. Mr. Kruzinski has extensive experience in fixed asset appraisals for the public sector. He has earned the designation of Senior Member of the American Society of Appraisers in Machinery and Equipment. City of Port Angeles Page 2 Mr. Kruzinski was previously employed with a national appraisal firm, where he was responsible for major project management, as well as involved with the implementation of computerized fixed asset gathering systems and training of staff appraisers. Mr. Shawn Olson, A.S.A. will perform the inventory and appraisal of all assets owned by the Light Fund/Electric System. Due to the unique expertise required for valuations of electric utilities, we intend to subcontract this portion of the engagement to Mr. Olson, who is presently employed by Consilium, Inc. We have made arrangements with the management of Consilium to utilize Mr. Olson's significant expertise in electric utilities for this contract. Mr. Olson has completed numerous appraisals of other electrical utilities within the State of Washington. Listed in the References section of the Addenda are several Washington State Public Utility District references who are familiar with Mr. Olson's work. We have included resumes of all major participants in the Addenda. PURPOSE AND OBJECTIVES OF THE APPRAISAL The purpose of the inventory and appraisal service is to provide the City of Port Angeles with a comprehensive fixed asset appraisal of the it's assets, which when completed, will satisfy the stated objectives of the City as follows: Financial Reporting: 1. Materiality Disclosure (Ref: Disclosure for Offerings of Securities by State and Local Governments) 2. Audit Compliance (Ref: AICPA State and Local Government) 3. City of Port Angeles Certificate of Achievement of Excellence in Financial Reporting Cost Accounting: 1. Rate Setting (enterprise and internal service funds) 2. Program Cost Recovery Capital Expenditure Planning: 1. Budget Request Substantiation 2. Capital Asset Improvements and Replacement Forecasting City of Port Angeles Page 3 Insurance Requirements: 1. Total Insurable Value 2. Specific Values 3. Coinsurance Compliance 4. Proper Rating 5. Proof of Loss Assistance 6. Perpetuation of Insurable Values Accountability and Control: 1. Responsibility and Custodianship 2. Operation Efficiency GENERAL SCOPE OF WORK A. PROPERTY TO BE INCLUDED Our inventory and appraisal will include all land improvements, buildings and structures, machinery and equipment, utility undergrounds, and furniture and fixtures at the locations specified in the City's Request for Proposal and included as Addenda A to this proposal. Land, licensed vehicles and similar floater equipment will be included based upon information provided by the City. PLEASE NOTE Upon review of the information provide within your R.F.P. package we found that your property list did not include the five reservoirs noted on your Water System map. We have included within the scope of this proposal, the additional cost to inventory and value the five additional locations. Utility infrastructure of the City, including water and sewer lines, electrical systems, substations, poles, lines and transformers will also be included in the inventory and valuation. In our meeting with City staff familiar with the utility infrastructure, it was determined that significant information exists which can be utilized by our appraisers to consolidate the information into meaningful and manageable fixed asset data. We will discuss the format and procedures we intend to utilize with City staff and the State Auditors office to ensure acceptability of the approach, and also to ensure that the City will be able to continue the system once the appraisal is completed. City of Port Angeles Page 4 B. PROPERTY TO BE EXCLUDED Property to be excluded from our appraisal are assets of an intangible nature, records and drawings, consumable supplies and spare parts, inventory items and personal property of employees or officers. C. PRO.TECT PLANNING Our project manager will hold a project planning meeting with City representatives prior to the start of the field work. It is advisable that members of the administrative staff and others directly involved with the ongoing maintenance of the fixed asset system attend this meeting. The project planning meeting will address the physical inventory schedule, accessibility to buildings and locked rooms, a contact person for each department, a review of useful life tables to be utilized, availability and use of original purchase records, and the assignment of master -table file code numbers and associated descriptions for property/locations, buildings, departments, funds, account codes, etc. Other topics of discussion will include a review of the City's objectives and the tasks to be completed by Asset Valuation Services appraisal staff. Specifically, we will review the overall scope of the project, including locations to be appraised, types of property to be included /excluded, methodology, inventory procedures, costing and valuation procedures, database information to be recorded, report format and delivery schedule. This meeting will also lay the foundation for the methods and procedures to be used in recording property transactions occurring after our field inventory and for the continued maintenance of the fixed asset system upon delivery of the final reports. D. TAGGING Our fee quote includes the cost for Asset Valuation Services personnel to apply tags and record tag numbers of all Capitalized Assets with an original cost of $1,000 and greater. In discussions with City staff, it was also determined that you wish to tag certain theft sensitive assets, such as computer printers which may fall below the $1,000 threshold. Asset Valuation Services will purchase the type and quantity of tags needed for this assignment as well as for perpetuation of the tagging system for the next several years. If you would like to discuss our experience with various types of tags, please call us. City of Port Angeles Page 5 Although we have had great success with our current tag supplier, Asset Valuation Services, Inc. takes no responsibility for the durability of tags or their ability to adhere to specific asset surfaces. We have included within our fee quote for Bar Code Hardware and Software the cost to purchase 8,000 bar coded asset tags. If the quantity needs to be adjusted to a lesser or greater quantity, the cost to the City will also be adjusted. E. REPORTS Our reports will be in an easy -to -read format. We will provide two copies of each report. The report will include a certified letter of transmittal which will: Identify the property appraised State the purpose of the appraisal Specify the appraisal date Define the level of value sought and the premises of value employed Describe the nature of the property included in, and excluded from, the appraisal Discuss the appraisal investigation Indicate the factual data considered Present the conclusions of value Outline the qualifying and limiting conditions Include the signature of an authorized officer of the company The following report formats will be provided: 1. Asset Summary by Fund and Account 2. Depreciation Summary by Fund and Revenue Source 3. Asset Depreciation Report by Fund and Revenue Source 4. Asset Listing by Department, Site and Class 5. Physical Location Report by Department, Site and Building 6. Insurance Summary Reports by Site and Building 7. Insurance Detail Report 8. Replacement (Retirement) Year Report, by Department, Site and Class At the Project Planning Meeting, we will review the exact format of the reports ID desired by the City. We will provide samples of previous report formats and have the capability to customize reports to meet your exact requirements. City of Port Angeles Page 6 F. SAMPLE REPORT We have included as an attachment a copy of an appraisal performed for the Southeast Washington County Joint Water Agency. The purpose of the appraisal was for fixed asset accounting and insurance. Additionally, the Agency was merged into the operations of the City of Tigard, Oregon, and the appraisal was used to assist in that process as well. The contact at the City of Tigard is Wayne Lowery. His phone number is (503) 639 -4171. G. DATA CONVERSION As stated in the City's Request for Proposal, you have indicated that the City intends to purchase a fixed asset software program from Solutions for Government in the Microsoft Access database format. Upon receipt of authorization to proceed with the appraisal service and prior to the start of the field inventory, we will customize our record layout, within the parameters of this proposal, to match your program. Upon completion of the inventory, pricing, data processing and report generation, Asset Valuation Services will provide an ASCII file of all data, including Location, Building, Department, Fund, and Classification Tables on floppy disk or other acceptable medium for uploading into the City's fixed asset software program. Customizing our input and reporting to your software prior to the actual start of the project ensures that, during the transfer of information from our program to the City's, no data will be truncated or lost. H. TRAINING Upon delivery of the appraisal report, we will perform an on -site training of selected City personnel in the procedures and methods necessary to properly maintain the fixed asset record system. The training will address areas such as: 1. Importance of maintaining the fixed asset system. 2. Explanation of what comprises a fixed asset. 3. Asset listing methods used, by type of asset. 4. Additions, Retirements and Transfers. 5. Shared Fund purchases. 6. Coding structures utilized. 7. How to handle assets below the Capitalization Policy 8. How to use the Bar Code Scanner (designated personnel only). City of Port Angeles Page 7 I. PROPERTY MANUAL In addition to the stated reports, Consilium will provide a Property Manual outlining the City's stated fixed asset policies and procedures to be followed to maintain it's fixed asset database once the appraisal is completed. In order to provide this manual we will need to interview the personnel responsible for the ongoing maintenance of the fixed asset records. We suggest this interview process follow the Project Planning meeting. The completed property manual will be delivered prior to the completion of the appraisal and upload of the computerized database information to ensure that the fixed asset database is properly maintained. The information in the manual will include, but not be limited to: Property Control Responsibilities Asset Control Categories Asset Tagging Procedures Maintaining the Database Annual Procedures We will also provide suggested form formats for Additions, Transfers and Retirements. TECHNICAL APPROACH A. COSTING VALUATION METHODOLOGY AND PROCEDURES The inventory and appraisal procedures utilized will follow generally accepted appraisal practices and will include use of those techniques necessary to develop acceptable original acquisition cost and acquisition date information. During the course of the inventory and the subsequent valuation research, our appraisers will examine all assets and available records to determine date of acquisition, original cost, and cost of reproduction new. One of the primary tasks to be performed during a fixed asset appraisal is the determination of the original cost of each fixed asset. Original cost is defined as the amount originally paid to acquire the asset, including such costs as set -up charges, transportation, taxes, engineering and architectural fees, title insurance, etc. If an asset was donated or bought for a nominal sum, GAAP requires that the asset be accounted for at market value as of the date of acquisition. City of Port Angeles Page 8 III There are three recognized methods which can be used to determine the original cost of a fixed asset. They are as follows: Direct Costing Direct Costing utilizes the actual original cost and acquisition date information gathered from invoices or other similar source documents for the property inventoried and is therefore the most accurate method. Whenever possible and feasible, we will use the Direct Costing method. When invoices or other reliable source documents are not readily available, we will utilize the Standard Costing or Normal Costing methods. Standard Costing Standard Costing is an estimate of the original cost based upon a known average installed cost for a like unit at the estimated acquisition date. The unit's age is estimated based upon observed condition, manufacturer's name, model, serial number, age of the facility, etc. Normal Costing Normal Costing is defined as an estimate of the original cost based upon the current cost of reproduction new, indexed by a reciprocal factor of the price increase of a specific item or classification of items from the estimated date of acquisition to the appraisal date. In order to satisfy the Insurance and Capital Asset Replacement portion of the engagement, our appraisal will include, for each asset, Cost of Reproduction New and Cost of Reproduction New Less Depreciation, defined as follows: Cost of Reproduction New is the amount required to reproduce property in like kind and materials, in accordance with current market prices for materials, labor and manufactured equipment, contractor's over -head, profit, and fees, but without provision for overtime or bonuses for labor and premiums for material or equipment, based upon reproducing the entire property at one time. Cost of Reproduction New Less Depreciation for insurance coverage, is based upon the cost of reproduction new, as defined, less an allowance for accrued depreciation as evidenced by observed condition in comparison with new units of like kind, with consideration of physical deterioration and functional and economic factors deemed relevant for insurance purposes. City of Port Angeles Page 9 B. APPLICATION OF METHODOLOGY AND PROCEDURES It is our belief that all three methods for establishing original cost will be utilized in the appraisal of the City's assets. The application of each method will be based upon such factors as the availability and ease of obtaining actual cost information, and the relative significance to the materiality of the overall project. In other words, we will expend greater effort in gathering actual data on high cost and recently purchased or constructed assets as opposed to lower value and /or older equipment assets. We know from past experience that recent purchase information is easier to obtain and requires minimal City staff time. Purchase records for older assets may or may not exist, and if they do exist may be archived in such a way as it would take significant effort to locate the information. The City should consider the cost benefit to expending great effort to obtain actual original cost data. Examples of where and how the various original costing methods will be utilized are as follows: Direct Costing The Port Angeles Wastewater Treatment Plant was just recently completed and placed into service. Actual costs of the facility are readily available and therefore we will utilize the Direct Costing method. Our job will be to identify the various components that comprise the facility, and list and value those components based upon useful life and whether they are considered to be replaceable equipment, or construction. All values will need to be reconciled to the actual total cost of the project. Your Request for Proposal included a vehicle list detailing the pertinent information of each, including the purchase date and cost for each vehicle. We will utilize this information, but we must determine if the stated costs include permanently attached equipment and radios, etc. During my meeting with various members of the City staff it became apparent that certain types of assets will have actual cost and date information readily available. It appears that most, if not all recent construction information is available, as well as original costs of substations and other utility buildings. Also, equipment items such as computers, which are relatively new acquisitions, should be able to be direct costed without much effort. City of Port Angeles Page 10 Standard Costing The Standard Costing method will be used when Direct Costing information is not available, and when we are able to determine that the appraised asset has the same capacity and utility as a like unit for which information is available, either from City records, pricing manuals /catalogs, or previous appraisal projects. Normal Costing Normal Costing will be applied to all assets where the Direct or Standard Costing methods cannot be utilized. C. INVENTORY PROCEDURES We will inventory/list all included fixed assets by major category as follows: 1. Land Land will be included within our database information and reports based upon information to be provided by City personnel The information supplied should include, but not necessarily be limited to location, legal description, acquisition date and cost, and source of funds. 2. Buildings /Structures We will carefully inspect and measure the buildings and structures subject to our survey. Basic construction components and building features will be identified and valued. A description of each building will be developed and recorded. 3. Improvements Other Than Buildings Improvements outside a building and particular to a parcel of land will be inventoried and recorded by location, including fencing, outside lighting, etc. 4. Machinery and Eauipment A general inspection and field inventory will be conducted at those sites listed under Properties to be Appraised. Upon completion of the inventory, machinery and equipment items will be placed into one of the following categories: a. Unit Control Machinery and equipment items with a unit cost of $1,000 or more and having an estimated useful life of one or more years, will be inventoried and identified individually. City of Port Angeles Page 11 b. Group Control Items which have an original unit cost of less than $1,000 will be listed by like asset groups i.e., desks, chairs, files, etc., located within the same department, indicating quantities and total group costs. c. Lot Control In addition to the above two major categories, we will provide a lot category indicating a general grouping of minor assets, i.e., one lot office equipment, one lot minor tools, etc. We will assign only cost of reproduction new values for this category of assets. D. INFORMATION INCLUDED The master file database will include the following information for each asset: (a) Location (Site) (b) Building (c) Room (d) Department (e) Fund (f) Account (g) Classification Code (h) Tag Number (i) Quantity (j) Description (k) Manufacturer* (1) Model* (m) Serial Number* (n) Date of Acquisition (Actual or Estimated) (o) Normal (Useful) Life (p) Replacement Year (q) Original Cost (Actual or Estimated) (r) Accumulated Depreciation (s) Cost of Reproduction New (t) Cost of Reproduction New Less Depreciation (for buildings and structures only) To be recorded when available on the individual asset. Department, fund and account numbers will be assigned with assistance from City personnel. City of Port Angeles Page 12 BAR CODE HARDWARE AND SOFTWARE Asset Valuation Services, Inc. has an arrangement with a local distributor to provide bar code scanning devices and necessary accessories. We have also designed and implemented a program with the assistance of a software programmer to provide the software needed to run these units. These tools will enable the City to perform an inventory of it's tagged assets at any time. The list below is the scanning unit we would recommend the City purchase. 1. INTERMEC Janus 2020 hand held data collection computer. Includes 1 MB RAM, 2 MB ROM, 512 K Flash, Type II PCMCIA drive for pop -in memory, Microsoft ROM DOS 5.0, IRL 4.0. Including Nicad Battery and User Manual. 2. Communications Dock and Spare Battery Pack Charger 3. Janus Spare Nicad Battery Pack 4. Janus cable, JL2020 to PC 5. PCMCIA 2 MB Flash Memory Card 6. Janus Universal Power Supply (OPTIONAL) 7. Leg Holster, (right or left) (OPTIONAL) We have provided a specifications sheet on the INTERMEC Janus 2020 in the Addenda. TREND FACTORS We have included a quote to provide the City with annual trending factors so that the City may keep it's estimated insurable values current. It is unclear whether your software program has the capabilities to utilize the trend factors. Asset Valuation Services will contact your software vendor to determine if the system has the necessary means to perform the annual trending. If not, we will provide the knowledge to enable them to program this feature. Asset Valuation Services cannot include in our fee quote the cost of your vendors programming, but our consultation fees will not exceed $250.00 should they be required. City of Port Angeles Page 13 STAFFING FEES For competitive reasons, Asset Valuation Services, Inc. considers the hourly rates of it's personnel, and our estimate of the time required to perform the services requested, to be confidential information. Therefore we are submitting this information in a separate sealed envelope. We respectfully request that this information not be divulged to our competitors. TIMING You have indicated that you desired to have the appraisal and resulting reports completed and delivered by December 31, 1994. We feel that this time frame is not in the best interest of the City. A project as broad in scope, and with the potential impact, as the implementation of a fixed asset system should not be rushed to completion. Another underlying reason to extend the timetable is to enable us to capture all assets that are purchased prior to year -end 1994 and include them in final year -end reports. Our suggested timetable is included in the Addenda. In discussions with City staff, it was indicated that a firm deadline of mid -April is required to include the results of the appraisal in the year -end financial statements. Our timetable projects delivery in the first week of February. Upon receipt of your authorization, we will contact you immediately to determine a mutually acceptable schedule for the project planning meeting and our field investigation. If the schedule as indicated does not satisfy the City of Port Angeles requirements, please inform us and we will make every effort to meet your needs. City of Port Angeles Page 14 GENERAL INFORMATION The following conditions are considered standard practice in the performance of our appraisal services and, if applicable, are made a part of this proposal. All available data, records and previous appraisals deemed necessary in the search for costs and historical background should be provided to our appraisal staff. The City should identify all equipment not owned by the City in advance of the field inventory. A listing of all assets on loan or off premises for repair, etc., should be furnished to the appraisal staff. We will maintain copies of the final reports, together with all field notes and working papers, in our files for a period of five years from the date of the appraisal. Should the need arise, these documents will be made available to the City. Asset Valuation Services will render advisory service, at no charge, to the City of Port Angeles and its auditors, regarding the procedures and methods utilized in the appraisal process and the resulting values of the assets appraised, to assure acceptance of the final report. In the event of property loss involving assets appraised, Asset Valuation Services will provide to the City, at no cost, current insurable values of the affected areas. The service is available for one year after completion and delivery of the final reports. If the City elects to contract for the annual updating service, this assistance would be extended for a period of one year from delivery of the updated reports. City of Port Angeles Page 15 FEE AND PAYMENT SCHEDULE On the basis of our understanding of your requirements, and the level of professional skills necessary to complete this project, our total fees shall not exceed the following: General Government Assets 6,410.00 Light Fund /Electric System 6,325.00 Water System 2,510.00 Wastewater System 3,810.00 City Garage /Fuel System 2,510.00 Annual Trend Factors 100.00 Bar Code Hardware and Software 5,170.00 (Including 8,000 Asset Tags) The above stated fees include any and all expenses incurred by Asset Valuation Services, Inc. in preparation and completion of this appraisal and the resulting reports. We guarantee our fees are for a period of ninety (90) days from the date of this proposal. Our payment schedule is as follows: progress invoices, up to 75% of the total fee, will be issued during the course of our engagement, with payment expected prior to delivery of the final report. A final invoice will be issued upon completion and delivery of the report and is due upon receipt of the reports. We are willing to discussing other arrangements if our payment schedule does not meet with The City's payment policies. CONCLUSION Should this proposal meet with your understanding of the services required, please signify your acceptance by signing the signature block on the enclosed duplicate copy of this proposal and return it for our files. Upon receipt of your authorization, we will contact you to arrange the appraisal schedule. We look forward to working with the City of Port Angeles on this important project. If you have any questions regarding this proposal, please feel free to call me. City of Port Angeles Page 16 AUTHORIZATION FOR SERVICE We hereby accept the Fixed Asset Appraisal Service of the City of Port Angeles assets as proposed by Asset Valuation Services, Inc. and specified in the attached proposal.. Please check services requested. ACCEPTED City of Port Angeles BY: TITLE: DATE: Offered by: ASSET VALUATION SERVICES, Inc. PRV /cb General Government Assets 6,410.00 Light Fund /Electric System 6,325.00 Water System 2,510.00 Wastewater System 3,810.00 City Garage /Fuel System 2,510.00 Annual Trend Factors 100.00 Bar Code Hardware and Software 5,170.00 (Including 8,000 Asset Tags) U a A/P j Per R. Vaaga President Encl. Duplicate Copy q n ADDENDA A PROPERTY LOCATIONS TO BE APPRAISED ADDENDA B QUALIFICATIONS OF PERSONNEL PROFESSIONAL QUALIFICATIONS PER R. VAAGA PRESIDENT, ASSET VALUATION SERVICES INC. Annraisal Specialization Mr. Vaaga has been engaged in the appraisal profession since 1977. His professional activities include engagement design and project administration. Mr. Vaaga has served as a valuation consultant of land, land improvements, buildings, and machinery and equipment for a variety of purposes including insurance, property records, ad valorem, financing, condemnation, allocation of purchase price, and other specialized requirements. Mr. Vaaga has performed appraisal valuations of land, buildings, improvements and machinery and equipment for purposes of property record fixed asset systems, condemnation, financing, insurance placement and proof of loss substantiation. Mr. Vaaga has been significantly involved in the design, development and documentation of a P.C. based fixed asset software program. Professional Activities Several speaking engagements before major insurance brokerages and public sector entities. Participated as a Facilitator of the Fixed Assets Roundtable at the 1993 Washington Municipal Treasurers Association Annual Conference. PROFESSIONAL QUALIFICATIONS JOHN C. KRUZINSKI, ASA SENIOR APPRAISER Valuation Skills and Experience Mr. Kruzinski has been actively engaged in the appraisal profession since 1977. He has been involved in major assignments involving fixed asset management systems for municipalities, counties, utility districts, school districts and other public entities. He has appraised light industrial plants, heavy mobile equipment, and major industrial property including the wood products industry and the food processing industry. He is skilled in the appraisal of land, buildings, equipment, and machinery for insurance, accounting, finance, and tax- related purposes. Professional Affiliations Education Senior member of the American Society of Appraisers (A.S.A.) certified in the discipline of Machinery and Equipment. He has served as Chapter vice- president and Secretary. Appointed to the Panel of Arbitrators of the American Arbitration Association and has arbitrated valuation disputes. General Appraisal Certificate to Appraise Real Estate in Washington State. Certified Real Estate Appraiser in the State of Oregon Bachelor of Science in Business Management, 1974, Northern Illinois University. Statistical Analysis course, Loyola University Successfully completed American Institute of Real Estate Appraisers courses Real Estate School of Oregon Real Estate courses, 1981 Numerous appraisal seminars and conferences 1977 1994 SHAWN L. OLSON, ASA Associate Project Manager Industrial Division POSITION Mr. Olson manages appraisal engagements for the valuation of real property, personal property and intangible assets required for financing, ad valorem tax, purchase price allocations, mergers /acquisitions, liquidations, tax and corporate planning, etc EDUCATION Bachelor of Arts Business Administration, 1983 University of Washington American Society of Appraisers Business Valuation Levels I II Uniform Standards of Professional Appraisal Practice HONORS AND AWARDS Toastmasters International, CTM Award, 1992 ff PROFESSIONAL LICENSING American Society of Appraisers, Senior Level, Machinery Equipment Oregon State Appraiser Assistant Registration AA00110 Candidate for Oregon State Certification APPRAISAL SPECIALIZATION Mr. Olson earned his senior level ASA designation in machinery and equipment in 1992, and specializes in the valuation of complex industrial properties. He has been in the appraisal business since 1985 He has significant experience in the valuation of multi location projects and provides field and technical assistance in real estate and business valuations on a frequent basis The following Government entities have had Fixed Asset Appraisal work performed by Per R. Vaaga and John C Kruzinski, ASA Southeast Washington County Joint Water Agency (Water District has now been merged with the City of Tigard) Contact: Mr. Wayne Lowery Finance Director City of Tigard 8777 SW Burnham Street PO Box 230000 Tigard, OR 97281 -1999 503-639-4171 City of Lynnwood Contact: Mr Robert W. Noack Finance Officer or Mr. William L. Burton Accounting Supervisor PO BOX 5008 Lynnwood, WA 98046 207 775 -1971 City of Yakima Contact Mr. Robert Wheeler Accounting Manager 129 N 2nd St. Yakima, WA 98901 509 575 -6070 City of Puyallup Contact: Mr. Dean D. Driver Assistant Finance Director 218 W. Pioneer Ave Puyallup, WA 98371 206 841 -5476 City of Grandview Contact: John B. Myers Treasurer 207 W. 2nd St. Grandview, WA 98930 509 882 -9200 CLIENT REFERENCES ELECTRIC UTILITY REFERENCES for MR. SHAWN OLSON, A.S.A. SENIOR APPRAISER, CONSILIUM, Inc. Grays Harbor P.U.D. Aberdeen, Washington Mr. Harry Paul, Administrative Assistant 206- 532 -4220 Clallum County P.U.D. Port Angeles, Washington Mr. Jerry Burke, Auditor 206 452 -9771 Cowlitz County P.U.D. Longview, Washington Mr. Mark Peterson, Controller 206 577 -7516 Mason County P.U.D. Shelton, Washington Orville Thykeson, Director of Finance /Treasurer 206- 426 -8255 PUBLIC SECTOR CLIENT LIST Amity School District No. 4J Astoria School District No. 1C Central Point School District Coquille School District No. 8 Dayton School District Eureka School District City of Fife City of Forest Grove Fortine School District City of Grandview City of Grants Pass Grand Forks Public School District No. 1 Grays Harbor P.U.D. Kennewick School District No. 17 Kessler Public Schools Lakeview School District No. 7 Lassen Community College City of Lynnwood City of Marysville McCormick School District McMinnville Public Schools Medford School District #549C Milton Freewater Elementary School District No. 31 City of Milwaukie Perry Technical Institute Portland Development Commission City of Puyallup City of Renton Scappoose School District No. 1J City of Selah City of Sheridan Saskatchewan Institute of Applied Science and Technology South Fork Water Board Southeast Washington County Joint Water Agency Trego School District Troy School District Warrenton- Hammond School District Whitman College City of Yakima (The above listing is a representative listing of Public Sector employees of Asset Valuation Services, Inc. during and prior company.) Amity, OR Astoria, OR Central Point, OR Coquille, OR Dayton, OR Eureka, MT Fife, WA Forest Grove, OR Fortine, MT Grandview, WA Grants Pass, OR Grand Forks, ND Aberdeen, WA Kennewick, WA Kessler, MT Lakeview, OR Susanville, CA Lynnwood, WA Marysville, WA Troy, MT McMinnville, OR Medford, OR Milton Freewater, OR Milwaukie, OR Yakima, WA Portland,OR Puyallup, WA Renton, WA Scappoose, OR Selah, WA Sheridan, OR Regina, CANADA Oregon City, OR Tigard, OR Trego, MT Troy, MT Warrenton, OR Walla Walla, WA Yakima, WA clients served by the to the formation of the ADDENDA D APPRAISAL TIMETABLE GAANT CHART AN CF D E P PQ' October 10, 1994 Per R. Vaaga President Asset Valuation Services P. O. Box 5154 Lynnwood, WA 98046 -6624 Re: Fixed Asset Inventory and Appraisal Dear Mr. Vaaga: At its meeting of October 4, 1994, the Port Angeles City Council accepted your proposal to conduct a Fixed Asset Inventory and Appraisal. Enclosed for your file is a copy of the proposal which has been signed by the Mayor. It is my understanding that you plan to begin work as of October 18, 1994. If I can be of any further assistance, please feel free to contact me. Sincerely yours, Becky J. Upton City Clerk Enclosure 321 EAST FIFTH ST P 0 BOX 1150 PORT ANGELES, WASHINGTON 98362 PHONE (206) 457 -0411 5. 3 J7 CITY OF PORT ANGELES ID 1 2 3 4 5 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Name Contract Award Pre Appraisal Planning Contact City /arrange Project Planning Meeting Contact State Auditor's Office Project Planning Meeting Determine Inventory Schedule Establish Master Table Code lists Determine availability of original records Est. Procedures for Add Retire and Trans Interview City staff for Property Manual input Appraisal Inventory of Assets Gather actual original cost information Inventory Assets Gather information to be provided by City Write Property Manual Appraisal Inventory Exit Meeting Review data remaining to be provided by City Submit draft of Property Manual Exit Interview Data Entry of Appraisal Inventory Enter appraisal inventory data Enter City provided data Enter classification coding for assets Print costing and valuation reports Project City of Port Angeles Date 9/19/94 Critical Duration 1d 1d 1d 1d 1d id 1d 1d 1d 1d 12d 2d 8d 2d 3d 1d 1d 1d 1d 13d 5d 5d 2d 1d I U U s 1 I I I I City of Port Angeles Fixed Asset Appraisal Schedule 10/16 10/23 10/30 11/6 11/13 11/20 11/27 12/4 12/11 12/18 12/25 1/1 1/8 1/15 1/22 1/29 2/5 s BIIIMMEIWOM©©©©EM s s ©EI^f12111©©EIwli7© s s s s ©il^WEIGIMMEI 1EIOm© EMBIZI©©X570©m ©o ^wo©m©IMI�i IITIME 70Mm©EIw©OmCIELIBI m ©Mo U Noncritical Progress 1 .111111111111111117177117111111111111 =4 Milestone 0 Summary Rolled Up ASSET VALUATION SERVICES, Inc. Page 1 ID 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4o 41 42 43 44 45 46 (Name Revise /Finalize Property Manual Review and discuss City's comments Prepare final version of Property Manual Costing and Valuation Determine Cost of Reproduction New Reconciliation of Direct costing information Perform Standard costing where available Perform Normal costing for remaining assets Data Entry of CostingNaluation Enter values and make corrections Print reports Report Review Appraiser report review Project Manager report review Data Entry/Corrections Perform corrections Print final reports Assemble final reports Final Review Convert data to SFG's software format Deliver Reports, Manual and Database to City Train City staff in reporting procedures Project City of Port Angeles Critical Date 9/19/94 Duration 3d 1d 2d 20d 15d 3d 1d 1d 4d 3d 1d 4d 2d 2d 4d 1d 2d 1d 1d 1d 1d 1d ASSET VALUATION SERVICES, Inc. City of Port Angeles Fixed Asset Appraisal Schedule 10116 10/23 10/30 11/6 11/13 11/20 11/27 12/4 12/11 12/18 12/25 1/1 1/8 1/15 1/22 1 /29 ©owo©©©©©Moom©owE10 s s ©oMao EIMEMEI©m©aMoMECIEM ©IEREEI EIEMZoo SiMIT1MTIF IS SIMITIWjTIFIS SIMIT`WITIFIS sIMITI FT1FTs SIMlT IJ✓ITIFIS s Noncritical Progress U Milestone Summary Rolled Up carraor I Page 2 ADDENDA E BAR CODE SCANNER HARDWARE SPECIFICATIONS HAND-HELD DATA COLLECTION COMPUTER The JANUS 2020 offers single- handed data entry in a rugged one piece solution. Built to take it anywhere, this intelligent, rugged portable lets you bring the power of your desktop to your work site. The JANUS 2020 is PC -AT compatible with a 386 microprocessor and it runs Microsoft DOS, so it's easy to program using many off-the-shelf standard PC -based programs. Its PCMCIA card drive provides flexible expansion capabilities so your 2020 can grow with you as your computing needs change. Part of Intermec's new JANUS Generation of portables, the 2020 makes it easy to integrate your data collection requirements into your existing computer system. uau�ni !ANUS Built -in laser scanner allows easy one handed operation for scanning virtually all types of bar code labels Uses Microsoft ROM DOS 5.0 and a 386SXL microprocessor with PC -AT architecture for greatest compatibility with application development tools Supports Intermec's Interactive Reader Language (IRL) for backward compatibility Features Type II PCMCIA drive for expandable flexible memory and I/O configurations Simplifies bar code integration into standard applications through the built -in Virtual Wedge Displays operator messages on a large CGA- compatible 16- line by 20- character (25 x 80 virtual) backlit liquid crystal display SPECIFICATIONS: Hardware 386SXL microprocessor PC -AT compatibility Emulates full PC -AT 101 keyboard Software Microsoft ROM DOS 5.0 Microsoft QBasic Microsoft Interink /Intersvr communications package IRL 4.0 User friendly configuration screens Virtual Wedge Bar Codes: Autodiscriminates among CODE 39, 2 of 5, Codabar, Interleaved 2 of 5, UPC /EAN, UCC /EAN 128, Code 128, CODE 11, CODE 93, Plessey, MSI, Code 16K, CODE 49 Display 16 lines, 20 column backlit LCD CGA compatible Virtual 25 x 80 display with viewport Memory 1 MB RAM, 2 MB ROM, 512K Flash Type II PCMCIA drive for pop -in memory and I/O expansion Keypad Emulates full PC -AT 102 keypad Options: Large key U.S. International: German, Spanish, Italian and French Physical Characteristics Width: 3.3" (8.4 cm) Length: 8.0" (20 3 cm) Depth' 2.25" (5 7 cm) excluding handgrip Weight: 22 oz. (600 g) excluding NiCad battery pack 1000 mAH NiCad 6.7 ounces (190 Data Communications Infrared serial communications interface RS- 232 -C, RS -422, RS -485 I/O through Type II PCMCIA cards Protocols: PC standard, Point -to- point, Polling Mode D, Multi -Drop, User defined Interfaces Infrared DB9 via optical link adapter Power Primary: Sealed NiCad battery pack, 1000 mAH, 10 hours operation AC power supply Backup: 1000 mAH lithium cell Charging: 2 hours to charge NiCad with JZ2020 charger Environmental Operating: -4° -122 °F 20 -50 °c) Storage: -40° -140 °F 40 -60 °c) Humidity: 0% to 90% relative non condensing Optical Parameters Visible laser diode (670 nm) Depth of field: 7.5 mil code 3 -7.5" 10.0 mil code 2- 10.0" 20.0 mil code 3- 16.0" 40.0 mil code 4- 25.0" AVOIDx EX POSURE EVITER O E., EX EXPOSITION Product Configuration J2020 Basic unit Non- incendive rated Accessories JD2020 Communications Dock with single battery charger JZ2020 Intelligent four -pack 2020 battery charger JL2010 Optical Link (same as 2010) 1000 mAh NiCad Battery Pack (6.7 ounces /190 g) Holsters Software Programmer's Software Kit (PSK) PC IRL Version 4.0 for JANUS PCMCIA Memory Cards 2 MB SRAM for 2020 and 2010 2 MB FLASH for 2020 and 2010 Manuals J2020 User's Manual PC IRL Programming Manual Power Supplies JANUS 2020 HAND -HELD DATA COLLECTION COMPUTER i J2020 Regulatory Approvals UL Listed, UL 1950 Optional UL Listed, UL 1604 C22.2 #213; Non Incedive (Division 2, Hazardous Locations), USA and Canada CSA Certified, C22.2 #950M89 TUV Rheinland Licensed, EN 60950 (IEC 950), VDE 0805 TUV Rheinland Licensed, EN 60825 (IEC 825), Class 2 Product Laser CDRH Class II Product Laser FCC Part 15 DOC SOR /88 -475 FTZ Vfg 243 (VDE 0871) EN 55022 (CISPR 22) Intermec North American Sales Intermec Corporation 6001 36th Avenue West P 0 Box 4280 Everett, Washington 98203 -9280 Phone (206) 348 -2870 Label Products: (800) 227 -9947 Strategic Gov't Programs (206) 356 -1752 FAX. (206) 355 -9551 European Sales Intermec EHQ Schiess -Str. 44a 40549 Dusseldorf Phone: 49- 211 527000 Fax: 49- 211 52700 -16 Label Products: 31 -80- 723100 Asia- Pacific Sales Intermec Corporation 6001 36th Avenue West P.0 Box 4280 Everett, Washington 98203 -9280 Phone. (206) 348 -2755 Label Products• (206) 348 -2755 FAX: (206) 348 -3788 The word Intermec, IRL, JANUS and Virtual Wedge are trademarks of Intermec Corporation All trademarks and registered trademarks belong to their respective owners Specifications subject to change without notice ©4-94 Intermec Corporation 606657C Printed in U S A