CITY OF SANTA CLARITA

23920 Valencia Blvd., Suite 300

Santa Clarita, CA 91355

REQUEST FOR PROPOSALS FOR FIXED ASSET INVENTORY AND VALUATION

I. Introduction

The City of Santa Clarita is seeking proposals from companies that can provide fixed asset inventory and valuation. Fixed asset inventory and valuation would include such services as providing: a property record for financial reporting, effective property control, a basis for insurance placement and proof-of-loss, management reporting and capital budgeting. These services must be provided in accordance with the requirements of the Governmental Accounting Standards Board (GASB) and Generally Accepted Accounting Principles (GAAP).

II. City Overview

The City of Santa Clarita encompasses 42 square miles within the Santa Clarita Valley and enjoys a mild Mediterranean climate. The City is situated 35 miles north of Los Angeles and is surrounded by the Santa Susana, San Gabriel, and Sierra Pelona mountain ranges. The population is an estimated 129,000 persons. The City of Santa Clarita is also the fourth safest city of its size in the United States.

The City was incorporated on December 15, 1987, as a general law City. The City operates under a council-manager form of government, with the City Council acting as the part-time legislative body of the City. Five members are elected to the City Council at large on a non- partisan basis with members serving four year terms. Elections are staggered every two years, with the Mayor serving a one-year term and acting as presiding officer.

The City Council appoints a City Manager to be Chief Administrative Officer responsible for the day-to-day operations of the City, as well as carrying out policies established by the City Council.

Currently, the City employs approximately 200 full-time employees, and may employ an additional 150 part-time seasonal employees. For fiscal year 1996-97, the City adopted an operating budget of approximately $56 million.

III. Current System of Fixed Asset Management

The City of Santa Clarita's policy with regards to capitalization of fixed assets has been to capitalize equipment with a cost * of $500 or more and all furniture regardless of cost and having a useful of life of at least one year. At June 30, 1996, the City's general fixed assets totaled $49,187,319 for all but the enterprise fund. The fixed assets for the enterprise fund, net of accumulated depreciation, was $9,466,001.

Effective July 1, 1997, the City is modifying its policy on the capitalization of fixed assets. The new policy will be to capitalize any property with a cost* of $1,000 or greater and having a useful life of two (2) or more years.

Currently, the City does not have a formal policy for tracking items of value such as radios and cameras, unless they fall under the "capitalization" policy.

* In determining the cost of an asset, any reasonable and necessary cost incurred to place the asset in its intended location and prepare it for use is included. Such cost could include the following: taxes, legal and title fees, closing costs, appraisal and negotiation fees, surveying fees, land preparation cost, demolition cost and transportation charges.

IV. Current Computer System

The City operates on a Local Area Network (LAN) using a Netware 3.12 file server. The financial accounting software system, Pentamation, uses a Hewlett Packard 9000 K200 application server with a Unix based operating system running an Informix Database engine. The individual PC workstations that are connected to the LAN communicate with Unix using a terminal emulation software, Reflection. The Pentamation system is made up of a number of different modules, one of which is a fixed asset manager which the City intends to utilize for ongoing accounting and record-keeping of its fixed assets. The City does not intend to purchase new fixed asset software.

V. Scope of Work

The City's intent is to develop a comprehensive Fixed Asset Management Program that addresses three general areas: accounting and financial reporting, theft and loss control of noncapitalized assets, and insurance placement and policy requirements.

Objectives

The City's specific objectives are as follows:

•	To be provided with a comprehensive fixed asset record for:

Financial reporting (internal and external)

Property location and class control

Enterprise fund accounting

Insurance placement and proof-of-loss

Property purchased with Federal funds

•	To be provided with an effective system to maintain the record.

Scope of Work

The scope of the work to be performed shall include:

•	Inventory and valuation for all land improvements, buildings, machinery and equipment, furniture and office equipment, vehicles, and other miscellaneous fixed assets that fall within the City's definition of "fixed assets" as described in Section III above.

•	Inventory and valuation of other assets of significant value such as cameras and radios that do not necessarily fall within the City's definition of "fixed assets" as described in Section III above.

Required Services

The service should include but not be limited to:

•	A physical inspection and inventory of all property included.

•	Valuation of all property included.

•	Bar code tagging of each fixed asset. The bar codes should be able to be read by a scanner that will access information about the asset such as the tag number and the description and location of the asset; such information should then be able to be loaded into the City's existing fixed asset database as described in Section III above. The tag numbers must be able to be read with or without the use of the scanner.

•	Removal of the City's old fixed asset tags.

•	Provision of the necessary equipment by which City personnel are able to tag new assets and provision of a scanner to read the bar coded tags including any necessary software to be able to interface the bar coded information with the City's current fixed asset database.

•	Preparation of a comprehensive narrative report describing the scope, procedures, and definitions used in the service performed.

•	Preparation of a master file (which must be able to interface with the City's current fixed asset software), which should be an ASCII text file with delimiter being a "|" (bar) and including a carriage return and line feed. This would allow loading the master file into Pentamation, which would include, at a minimum, the following information for the assets included:

Description

Location, which would include:

Building

Department

Division

Department Account Number

Property Classification, which would include:

Land and improvements

Buildings

Equipment

Improvements other than buildings

Construction in progress

Quantity

Manufacturer*

Model*

Serial Number*

Date of Acquisition

Normal Life Expectancy

Original Cost (Actual or estimated)

Salvage Value, if any

Accumulated Depreciation

Replacement Cost

Replacement Cost less Depreciation

Space for Future Information Required

*To be recorded when available on the individual asset

•	Preparation of a procedures manual to assist City personnel in all management procedures (e.g. purchasing and receiving) and provide instruction for recording and tagging property additions, handling of retirements or other dispositions, and handling of any other property changes including physical movement from one location to another.

•	Preparation of the following reports:

Insurance Valuation Report

Property Location Inventory

Property Class Inventory

Department Listing

•	Collection and retention of sufficient data to provide detailed proof-of-loss information, in the event of a loss, consistent with the insurance policies in effect.

Impact on City Staff

The services are to be provided with minimal assistance from City staff.

External Auditors

Since all services performed must meet governmental auditing standards, it may be necessary from time to time during the course of the project for the contractor to consult with the City's external auditors.

Timing Requirements:

The contractor must set forth a proposed work schedule and time-line for the various phases of the project, provide periodic progress reports and arrange any meetings with our external auditors and/or City staff as the need arises. The contractor should plan to have all phases of the work completed by October 31, 1997.

Additional Services

•	Assets of like kind, located within the same division and department, approximately the vintage, life, and cost, are to be grouped. Similarly, minor items included for insurance purposes only are to be grouped.

VI. Optional Services

Please provide a one-page summary describing any additional services, not requested in this RFP, that your company can provide that would be of benefit to the City.

VII. Contents of Proposal

The proposal must include the following data:

•	A cover letter introducing the company and including the company name, address and telephone number of a corporate headquarters or the local office. The name of one individual must be set forth who will be the primary contact with the City.

•	The number of years in business.

•	List of other governmental agencies, including their address and phone number, for which the contractor has provided similar services.

•	An analysis of the various methodologies by which a fixed asset appraisal can be developed, including discussion of the advantages and disadvantages of your approach.

•	A detailed work plan that your firm will follow in this assignment. Indicate progress review meetings with City staff/officials, specific output generated at various steps, and major milestones. You should also indicate how much staff time the City might expect to devote to this project, specified by task (i.e. data gathering, review, meetings, etc.)

•	A detailed outline of fees for any equipment to be purchased and for services by each phase of the project including any applicable taxes. This should include a list of individuals participating in this assignment, including staff classifications and billing rates. Also include estimate of total number of hours for each phase and the maximum- not-to-exceed-fee, including out of pocket expenses. Appendix A should also be completed as a summary of the above costs. Appendix B, attached provides a general breakdown of the facilities owned by the City to be included in the inventory and valuation process.

•	A detailed index of the contents of the proposal.

•	A description of the proposed services in narrative format, with any exhibits or documentation deemed essential, addressing the following phases of the proposed service:

Planning and Project Coordination

Field Inventory Procedures

Costing and Valuation Techniques and Procedures

Maintenance and Perpetuation Procedures

•	A schedule of the proposed timing for completion of this project

•	Manpower capabilities must be outlined including:

Number of full-time professional appraisers currently employed which would be
assigned to the project

Credentials of full-time personnel currently employed by the company

Anticipated impact on City personnel in terms of time and City documents required to perform the requested services

•	A resume of the company's experience in municipal projects including:

Name, address, and telephone number of client references who may be contacted

A brief description of each project explaining the service performed

Samples of reports produced

•	A statement of the company's financial responsibility and resources to undertake an engagement of this magnitude

•	A copy of the company's most recent annual financial report, or that of the company's parent company. If the company is privately held, they shall provide audited financial or proof of financial stability.

•	A one-page summary of additional services as described in section VI. above.

VIII. Terms and Conditions

Each proposal shall meet all of the specifications discussed in this RFP. If a proposal is provided it is assumed that the company meets or exceeds the requirements as stated. If information requested in this RFP is omitted, the proposal may be deemed "nonresponsive" and may be eliminated from further consideration.

The Proposal Submission Package must be completed in its entirety.

All questions or requests for information must be submitted in writing by June 10, 1997 to:

April Jordan, Accountant	Phone: (805) 286-4072

City of Santa Clarita	Fax:	(805) 259-8125

23920 Valencia Blvd., Suite 300

Santa Clarita, CA 91355

Questions and requests for information will be addressed by the City via an addendum and become a part of this RFP. Such addenda will be mailed or faxed no later than June 16, 1997 to those persons who have received the RFP.

The City reserves the right to retain all proposals submitted. The City also reserves the right to waive non-substantial irregularities in any proposals, to reject or delete one part of the proposal and accept the other; reject any and all proposals; and to make award to any responsible, responsive proposer as the interest of the City may require.

Selection of a company will be based on a demonstrated ability to produce acceptable results as requested in the RFP, on-going support, staff qualifications and experience, financial stability of the company, and overall cost. Final selection is subject to City Council approval at the City Council meeting scheduled for July 8, 1997.

Firms may withdraw their proposals, without prejudice, prior to the date and time specified for proposal submission, by submitting a written request to the City's Director of Administrative Services/City Treasurer for its withdrawal. No proposal received after the closing date or at any location other than the location stated in the "Notice Requesting RFP" will be considered.

The City will evaluate proposals for the purpose of entering into a contract with the company selected.

In the performance of the terms of this RFP, the company agrees that it will not engage in, nor permit such subcontractors as the firm may employ to engage in, discrimination in the employment of person because of age, race, color, sex, national origin or ancestry or religion of such persons.

The contract shall provide that the City reserve the right to terminate the contract at any time upon thirty (30) days written notice of the City's intent to terminate the contract.

Causes for termination of the contract may include the following: failure to promptly and faithfully provide the services required in this RFP; violation of any law; or any improper actions, which in the City's opinion, could adversely affect the interest of the City.

The proposer to whom award is made shall execute a written contract with the City within thirty (30) days after notice of the award has been mailed to it at the address given in its proposal.

All materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand.

Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the contractor without the prior written approval of the City.

The contractor shall provide proof of insurance in the form, coverages, and amounts specified in Appendix C attached.

IX. RFP Submission Process

The City Clerk will publish a "Notice Inviting RFP's" in the local newspapers. Submission packets will be available at the Finance Division counter at City Hall beginning on Monday, May 19, 1997, or will be distributed by request to companies by mail. The deadline for submitting the completed proposal is Thursday, 12:00 p.m., June 19, 1997. Proposals must be signed by an individual who is authorized to bind the company to all commitments purported in the proposals. Three copies of the proposal should be submitted in a sealed envelope with the outside marked: "Fixed Asset Inventory and Valuation Proposal." Proposals will not be opened until after the deadline. Additionally, proposals will not be disclosed to competing firms or to the public until after the recommended company has been selected. You may submit the proposal to the Office of the City Clerk, in person, or by mailing it to:

City of Santa Clarita

City Clerk

Fixed Asset Inventory and Valuation, RFP

23920 Valencia Blvd., Suite 300

Santa Clarita, CA 91355

APPENDIX A

PROPOSAL SUBMITTAL SUMMARY

The undersign declares that he or she is thoroughly familiar with the proposal's content; is authorized to represent the proposing firm; and hereby agrees to perform the specified work for the following cost quoted in full:

Description of Service	Cost And Comments

Physical on-site asset inventory	_________________________

(including historical and replacement	_________________________

values, property location by department	_________________________

and/or division).

Bar coding system to replace current	_________________________

tagging procedure and necessary equipment	_________________________

to maintain such a system.	_________________________

Management system by which City	_________________________

personnel will be able to track and report	_________________________

on all fixed asset information.	_________________________

Computer link to current City computer	_________________________

program to successfully complete	_________________________

all reporting functions.	_________________________

TOTAL ESTIMATED COST:	_________________________

Firm Name and Address:

Contact Person:	Phone Number:	Fax Number:

Signature of Authorized Representative:	Date:
APPENDIX B

FACILITY SPECIFICATIONS

Location	Description

City Hall	This is a 74,400 square-foot, 3-story building and is the main City
facility. The City occupies 49,413 square feet and the remainder is	leased out.

Field Services Offices	This is a single story building where the City's transit, street
maintenance, vehicle maintenance, and park's maintenance divisions are located. This facility houses most of the City's vehicles, including the City buses, and heavy equipment.

Community Center	This building is used for community activities and
houses miscellaneous furniture and equipment.

Park Facilities	The City currently has 13 developed parks and 3 undeveloped
parks. The property to be included as a part of this RFP would be the park buildings and the furniture and equipment inside.

Notes:

•	The City of Santa Clarita does not own its own fire or police department; therefore, any assets associated with these services would not be included in this RFP.

•	These specifications are meant to be only general guideline and may not be all inclusive of the areas or facilities for the which the City may request services.

APPENDIX C

INSURANCE REQUIREMENTS

General Liability and Property Damage Insurance. During the entire term of this Agreement, Consultant agrees to procure and maintain general liability and property damage insurance at its sole expense to protect against loss from liability imposed by law for damages on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly from any act or activities of City, or Consultant, its subcontractors or any person acting for City, or Consultant or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of City, or Consultant, or its subcontractors, or any person acting for City or Consultant, or under its control or direction. Such public liability and property damage insurance shall also provide for and protect City against incurring any legal cost in defending claims for alleged loss. Such general liability and property damage insurance shall be maintained in full force and effect throughout the term of the Agreement and any extension thereof in the following minimum limits: A combined single limit policy with coverage limits in the amount of $1,000,000 per occurrence will be considered equivalent to the required minimum limits.

All of such insurance shall be primary insurance and shall name City of Santa Clarita as an additional insured. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City Manager, then Consultant agrees that the minimum limits herein above designated shall be changed accordingly upon request by the City Manager.

Consultant agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to persons or property resulting from Consultant's activities, the activities of its subcontractors, or the activities of any person or persons for which Consultant is otherwise responsible.

Worker's Compensation Insurance. Consultant shall procure and maintain, at its sole expense, Worker's Compensation Insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for both Consultant and City against any loss, claim, or damage arising from any injuries or occupational diseases happening to any worker employed by Consultant in the course of carrying out the within Agreement

Automotive Insurance. Consultant shall procure and maintain, at its sole expense, throughout the term of this Agreement any extension thereof public liability and property damage insurance coverage for automotive equipment with coverage limits of not less $500,000 combined single limit. All such insurance shall be primary insurance and shall name City of

Appendix C

Page 2

Santa Clarita as an additional insured. If Consultant does not own automobiles, Consultant shall provide a waiver releasing City from all liability resulting from Consultant's use of personal vehicles on project.

Professional Liability Insurance. Consultant shall maintain professional liability insurance which provides coverage for negligent professional acts, errors, or omissions for which Consultant is legally liable, in the amount of $1,000,000 per claim and in aggregate which arises from the performance of professional services by Consultant under this Agreement. The policy shall provide for coverage of claims occurring during the term of the policy.

Miscellaneous Insurance Requirement. A Certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City's Risk Management Officer shall be submitted to City prior to execution of this Agreement on behalf of the City.

The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or canceled by the carrier, for non-payment of premiums otherwise, without 30 days prior written notice of amendment or cancellation to City. In the event the said insurance is canceled, Consultant shall, prior to the cancellation date, submit new evidence of insurance in the amounts heretofore established.

If Consultant at any time during the term of this Agreement should fail to secure or maintain any insurance required under this Agreement, City shall be permitted to obtain such insurance in Consultant's name and shall be compensated by Consultant for the cost of the insurance premiums upon receipt of Consultant of written notice that the premiums have been paid.

The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under the policy if not named as an additional insured, and an additional insured shall not be held liable for any premium or expense of any nature on the policy or any extension thereof solely because they are as additional insured thereon.

Santa Clarita's Risk Manager is hereby authorized to reduce the requirements set forth above in the event he or she determines that such reduction is in Santa Clarita's best interest.