AR-Contract/American Appraisal Assoc., Inc.

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Valuation of Capital Assets June 11, 2001 Page 2 Section 3.08.150. C of the City's Purchasing Ordinance states in part, that the selection of professional consultants for specific projects shall be based on a variety of factors, including the professional consultant's experience, approach, availability, and knowledge of the subject area. It also allows the City Council to award a contract without a formal request for proposal or request for qualifications process, based on the particular requirements of the service to be provided and the experience and availability of the individual professional consultant. American Appraisal Associates is a leader in this field, having worked closely with the GASB in developing the standards for Statement 34. At this time, they have over 200 city, state and school districts as their clients and have performed over 19 infrastructure studies nationwide. Staff is recommending that Council waive the formal proposal process and award a contract to American Appraisal Associates, Inc. ALTERNATIVES: Staff could solicit formal "Request for Proposals"(RFP's), which will reduce the amount of time available to create the necessary records. Due to GASB 34, there is a great demand for this type of service, and the current proposal estimates four months for completion of the project. Because staff received informal quotes from the other leading providers of this service and had the benefit of reviewing the CSMFO survey, there does not appear to be any practical benefit associated with issuing a formal RFP. ENVIRONMENTAL IMPACT: None FISCAL IMPACT: The funds are available in the non -departmental professional services account #100-1000-1180- 2350. RECOMMENDATION: Staff recommends Council waive the formal "Request for Proposal" process and award a contract for the fixed asset valuation study to American Appraisal Associates, Inc. in the amount of $28,700. Report prepared by Lorraine Armstrong, Senior Accountant REVIEW TEAML City Attorney: Finance Director: i City Manager: OTHER: