HomeMy WebLinkAboutContracts & Agreements_3-1972March 28, 1972
Marshall and Stevens, Inc.
1645 Beverly Boulevard
Lag Angeles, California
Attention: Mr. William H. Seeger
Business Development 'Manager
Dear Sir.:
Reference is nacre to your letter of March 2, 1972.
Enclosed herewith is an endorsed copy of your letter
indicating approval of the new proposal .for continuing
appraisal services relative to the construction a.nd
equipment of the City of Redlands.
The revision forr^s included in your letter will be
completed and returned as soon as possible, but no
later than May 15, 1972.
Very truly yours,
John H. Wagner
Assistant to the City Manager
J11W : It
Enclosure
MARSHALL and STEVENS incorporated/appraisals
1645 BEVERLY BOULEVARD, LOS ANGELES, CALIFORNIA 90026 / (213) 624-3661
March 2, 1972
VU
Mr. John H. Wagner �' AVLTI-�
Administrative Assistant
CITY OF RED -LANDS
Redlands, California 92373
Dear Mr. Wagner:
As we agreed in our most recent discussion, I am submitting a
new proposal for continuing appraisal services relative to the
construction and equipment of the City of Redlands.
This service will be for the expressed purpose of providing a
professional opinion of the insurable value of the property under
consideration.
Over the period of the existing contract, a number of additions and
changes have been made in the assets of the City of Redlands which,
taken collectively, now makes necessary an adjustment in the fee.
In the past, substantial new additions of property have necessitated
increases in the appraisal fee in the year following acquisition.
However, there were no compensating adjustments, beyond the first
year, to cover the increased time these additions imposed.
We felt this arrangement was adequate because, from time to time,
reduction in other City properties offset some of the increases.
However, the net effect over the years has been to accumulate assets
rather than decrease them or stay even.
To remedy this situation, we propose the following:
1 . A complete reisting and repricing of twenty percent (20%)
of all City buildings and equipment each year. The A. K.
Smiley Library is considered one of the city buildings.%
2. A "revision" appraisal based upon statistically correlated �l
building and equipment trend factors applied to the remaining
eighty percent (80%) of City assets annually.
Mr. John Wagner
March 2, 1972
Page Two
3. Inclusion in the report of additions and other changes
in the equipment and furniture categories consistent
with normal business activities.
For the above scope of services the fee is estimated at $2 , 250 annually.
This estimate is based upon our cost analysis of recent City of Redlands'
assignments.
In instances where new real estate is added or where remodeling is done
to City structures, this type of additional work should be an additive to
the above fee in the initial year. The amount of any fee increase would,
of course, be estimated in advance and your approval would be secured
before proceeding. This is the procedure which has been followed with
satisfactory results.
If property acquisitions are continued at the same levels as in the past,
it may be necessary in three or four years to again reassess the base
fee arrangement in order to retain the same level of service.
It is our understanding that our 1972 report should be in your hands by
mid July. With this deadline in mind, we suggest that the revision
forms included with this letter be completed by your staff and returned
to us as soon as possible, but no later than May 15, 1972. We will
schedule the assignment to commence immediately thereafter.
If this proposal meets with your approval, please endorse the enclosed
copy of this letter and return it to my attention.
Thank you for your courtesy and consideration on the occasion of my
visit to your office.
Very truly yours,
MARSHALL and STEVENS
Incorporated
WILLIAM H. SEEGER ,
Business Development Manager. W Q
Approved By
WHS:cr Joh . Wagner, Asst. to the
Enclosures Date March 28, 1972 City Manager__
MARSHALL and STEVENS incorporated