Asset Re-Inventory & Valuation Services

May 12, 2014 Ms. Cindy Grandgeorge Controller Santa Clarita Community College District 26455 Rockwell Canyon Road Santa Clarita, CA 91355 Re: Asset ...
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May 12, 2014 Ms. Cindy Grandgeorge Controller Santa Clarita Community College District 26455 Rockwell Canyon Road Santa Clarita, CA 91355

Re:

Asset Re-Inventory & Valuation Services

Dear Ms. Grandgeorge: AssetWorks is pleased to provide this proposal for comprehensive Asset Re-Inventory and Valuation Services. These services are to be provided in order to develop compliant reporting of capitalized and critical assets. The resulting reports will be prepared in a GASB 34/35 and GAAP compliant format, along with the AssetMaxx system, the College will have the ability to perpetuate the data for future use and compliancy efforts. I personally thank you for this opportunity and invite you to join us as a partner in implementing and maintaining proper stewardship of your personal property assets. Should the College elect to engage this project, no subcontractors will be utilized, only full-time AssetWorks staff. I, Gregory Friz, will be the primary point of contact for this project and if I can be of any assistance, please contact me directly at 310-470-4803 x 1806 or [email protected]. Respectfully submitted,

Gregory Friz Director AssetWorks . 6404 Wilshire Boulevard, Suite 650 Los Angeles CA 90048 310-470-4803 ext 1806 310-470-4903 fax

Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

Proposal to Provide Professional Fixed Asset Re-Inventory & Valuation Services to: Santa Clarita Community College District

Respectfully Submitted by: AssetWorks Gregory N. Friz Director, Property Appraisal Services 6404 Wilshire Blvd., Suite 650 Los Angeles, CA 90048 [email protected] www.assetworks.com Phone: 800-428-1925 x1806

Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

TABLE OF CONTENTS Page 1) AssetWorks Description/Summary ............................................................ 3 2) Contact Information ..................................................................................... 4 3) Scope of Work ........................................................................................... 5-6 4) Costing & Valuation Methodology ............................................................. 7 5) Deliverables .................................................................................................... 7 6) AssetMaxx....................................................................................................... 8 7) Terms & Conditions................................................................................ 9-10

Authorization Page Exhibit A – Timeline of Activities Exhibit B – Location Sites

Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

1. ASSETWORKS DESCRIPTION/SUMMARY You can confidently select AssetWorks as your partner to conduct your Asset Re-Inventory Service for the following reasons: 

We have been in the business of asset inventory projects for over two decades and have the reputation of being the “best of class” provider. We are already a trusted partner with entities across the United States who have utilized our appraisal services in years past.



AssetWorks Appraisal is the technology pioneer in property valuation. We have the most advanced system in the business (AssetMAXXTM) and offer a perpetuation capability that minimizes the cost of ongoing property valuations.



We have successfully provided property valuation and appraisal services for more than 5,000 entities across the United States, Europe, and Puerto Rico.



Quality, communication and resulting customer satisfaction are our hallmarks.

AssetWorks, Inc. is a wholly owned subsidiary of Constellation Software, Inc., an international provider of market leading software and services to industries across both the public and private sectors. Founded in 1995, Constellation is the headquarters for several vertical market software businesses that provide mission-critical solutions for customers in several industries. The organization has more than 2,200 employees and is publicly traded on the TSX under the symbol CSU. CSI's consolidated revenues exceeded US $600 million. AssetWorks offers asset management solutions that embrace all aspects of capital asset and real property tracking, valuation and reporting. Our innovative solutions help organizations to vastly improve their property insurance and tracking programs, GASB34/35 accounting compliancy, generate detailed financial reports, carry out depreciation and capitalization modeling, and much more. AssetWorks has the capacity and local presence to provide efficient and timely professional asset services. Leveraging the latest Internet, e-commerce, and mobile computing technologies, our software and industry leading expertise help our customers maximize resource utilization, improve service delivery, and achieve substantial and measurable cost savings. AssetWorks is also an industry–leading provider of technology and consulting solutions for asset and infrastructure intensive organizations in government, education, utilities, telecommunications, transportation, healthcare and the commercial sector. Our suite of Enterprise Asset Management (EAM) software solutions and professional consulting services enable organizations to improve maintenance practices, streamline operations, and improve accountability for mission-critical capital and infrastructure assets.

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

2. CONTACT INFORMATION To ensure mutual success, AssetWorks designates an empowered contact person who also serves as your Partnership Manager. CONTACT PERSON PROFILE Mr. Gregory Friz is the designated contact person who is authorized to contract for AssetWorks. He is also the designated AssetWorks Partnership Manager for this project. The Partnership Manager is obligated to view the project from the client’s perspective and make sure that AssetWorks always acts in the interest of the client, consistent with the terms of the contract. The Partnership Manager has the authority to make decisions and command resources beyond the project at hand. The goal is to establish loyalty and build a long-term, successful relationship. Specific responsibilities of Mr. Gregory Friz, as the AssetWorks Partnership Manager, include the following: 

Works with the Project Manager to assess operational procedures, organizational structure, strategy, and budget issues.



Provides direct corporate oversight and responsibility for the project. This ensures that the base and history of the corporate experiences are available to our clients and that the procedures and materials used, build on the best practices of AssetWorks.



Ensures that the quality of the project deliverables meet company requirements and standards. Every deliverable is reviewed by the Partnership Manager prior to their release to the client.

The Partnership Manager ensures that a true partnership develops between AssetWorks and our clients with the recognition that neither party can be successful if the other is not.

Mr. Friz is well qualified to serve as the Partnership Manager. He is the current Director with AssetWorks. His tenure at AssetWorks has included regional project management, the planning, and execution of numerous property appraisals and capital asset accounting studies for educational, county governments, pooling organizations and various other public sector entities. CONTACT DATA Gregory N. Friz 6404 Wilshire Boulevard, Suite 650 Los Angeles, CA 90048 310-470-4803 ext 1806 (office) 310-470-4903 (fax) [email protected]

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

3. SCOPE OF WORK Project Scope The scope of this project is focused on the proper stewardship of College assets as well as the compliancy requirements of GAAP and GASB Statement 34/35. This includes the identification of property as well as the determination of historical costs for College-owned property. Additionally, identifying depreciable lives and calculation of accumulated and annual depreciations will take place followed by reporting in a format that is both useable and compliant. Data will be provided in both hard copy and electronic formats.

Project Work Plan (See Exhibit A) Client Staff Expectations AssetWorks believes that clients retain our services with the expectation that AssetWorks staff, as paid professionals and consultants, will perform the necessary tasks in a high quality manner to successfully complete the project on time. We do, of course, view our clients as active participants and anticipate their assistance with the following: 

Pre-Project Planning and Announcement – AssetWorks will identify key items to have prepared for the project kickoff meeting. We ask that you prepare a memo for staff members to announce the project and give the general purpose and time frame.



Access to All Sites & Records – AssetWorks appraisers will be granted access to all sites and existing records based on a mutually agreed upon schedule.



Asset Interrupt – We ask that the College pause or minimize any incoming/outgoing asset activity during this project.

Project ‘Kickoff’ Meeting Our project manager will hold a comprehensive project-planning meeting with the College at the start of onsite fieldwork. We advise that members of the administrative staff or other directly involved personnel attend this meeting. Topics of discussion include confirmation of project scope and time frames, the physical appraisal schedule, accessibility to buildings, and contacts for each building or location. This meeting lays the foundation for the methods and procedures used during the onsite fieldwork Project ‘Closeout’ Meeting Upon completion of the on-site investigation, the AssetWorks project manager will conduct a final closeout meeting with the College liaison. The focus is to ensure that all sites and properties have been accounted for and to answer any questions that you might have. This is also the time at which the College should ensure that all client supplied data has been transferred to the project manager.

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

Machinery, Furniture & Equipment A detailed inspection and field inventory will be conducted at all buildings identified in Exhibit A, identifying each capital asset by location, building and room. All assets included in our inventory and appraisal will be recorded and categorized by major account. This segregation of items will assist in reporting asset valuation totals for capital asset reporting formats. Our appraiser will utilize a hand held computer equipped with a laser scanner to document the required information for each asset where available: a. Asset Identification Number i. Building b. Description j. Site/Location c. Quantity k. Room/Sublocation d. Acquisition Date l. Cost Information e. Manufacturer m. Funding Source f. Model n. Department g. Serial Number o. Normal Useful Life h. Asset Account p. Miscellaneous (e.g. old tag #) AssetWorks will apply bar code tags assets where no tag exists and enter the tag numbers along with all the corresponding asset information into the database. Our base fee includes the cost of all tags necessary for the inventory. Control Assets – Assets with an original cost more than $500 or more, and having an estimated useful life of two years or greater will be inventoried and identified in reports, inclusive of all assets. Capital Assets – All assets with an original unit cost of $5,000 or more, and having an estimated useful life of two years or greater will be inventoried and identified individually and capitalized in the resulting reports and data. These reports are provided in order to comply with GASB Statement 34/35.

Buildings, Land and Improvements Real Property assets will be carried over from the prior database and changes will be made based on information provided by the College. AssetWorks will verify existing real property assets data as well as perform inventory and valuations for any new real property assets acquired by the College since last inventory. We ask the College to compile any existing information for this category of assets in preparation for the project. In addition, capital improvements that extend the useful life of a building, (i.e.; roofing projects, energy projects, remodeling, replacing major building components) will be capitalized and will become a part of the statement of assets for purposes of complying with GASB-34. The College’s capitalization threshold for capital construction and building improvements is $150,000. To ensure that these assets are recognized and recorded, AssetWorks will document recent capital project data from the College. This information should include: a. Project Description

b. Project Cost

c. Year Completed

d. Funding Source

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

4. COSTING & VALUATION METHODOLOGY The offsite valuation portion of the project entails the research and calculations necessary to formulate historical values and current replacement costs. The project manager and all team members work hand-in-hand to ensure the integrity of the data. The focus is on completeness, accuracy and proper formatting of all data prior to final processing and delivery. Our investigation will follow generally accepted appraisal techniques and include the use of techniques necessary to develop valid original costs and dates of acquisition for each asset. This includes use of the straightline method of depreciation. Original cost is determined by using the following costing methods: The Direct Costing method will be used where historical data is readily available from College records. The actual purchase cost and acquisition date will be maintained for those capitalized assets. The Standard Costing is used when inventoried property units/groups not reconciled to a historical record receive an estimated cost, where possible, based upon a standard cost (a known average installed cost for a like unit) at the estimated acquisition date. The Normal Costing method will be used where no historical information is readily available. These assets will be valued on a current basis and back-trended to an estimated date of acquisition to estimate the original cost. During the costing and valuation procedures, all items will be assigned a useful life which will determine its approximate replacement year and depreciation timeline.

5. DELIVERABLES Draft summary and detail reports will be sent to the College via email in a .pdf format for College review. The College will have the opportunity to review the draft reports and request final alterations. The final reports will be presented in an easy-to-read format. A narrative section that will certify our appraisal and document our procedures will precede your reports. Your reports will include: Letter of Certification Hard Copy Accounting Reports (Summary, Detail & Depreciation) Electronic Reports in Excel & .pdf formats on a CD AssetMaxx upload performed by AssetWorks * AssetWorks will also provide Exceptions Reports as a part of the process identifying all assets that were on the most recent database, but not found during the onsite inventory. Determination will need to be made by the College to dispose or carry over the assets to the new database.

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

6. ASSETMAXX We are pleased to offer AssetMAXX, a web-based program allowing public entities to securely maintain, collect, and retrieve property and asset data over the internet. Easy asset maintenance and overall system navigation are the cornerstones of the AssetMAXX design. AssetMAXX has a general look and feel that users are accustomed to when using the web and is the most comprehensive and flexible property management tool

available in the industry. Because AssetMAXX is a web-based solution, it provides users with significant advantages over traditional client-server or stand-alone software: 

AssetMAXX avoids the need for the large capital outlay associated with software purchases.



Users access the application over the world wide web, eliminating the added internal need for costly hardware and time consuming maintenance.



Application and data are housed on AssetWorks’ hardware at the AssetWorks data center. This ensures that the system is always optimally configured.

AssetMAXX encompasses all areas of capital asset and real property tracking and reporting to include:  Fast, Reliable and Easy Access to Data  Secure Server Location and Administration  Secure Authentication, Data Encryption and User Log for Accountability  Supports Unlimited Number of Users  Multiple Levels of Security and Access Permissions  Digital Photo Interface  GASB 34 Compliant Features and Reports  Both Standard and Ad Hoc Reporting Features  Supports Multiple Depreciation Methods and Capitalization Levels  Data Import and Export Capabilities The AssetMAXX pricing schedule is subscription based. Users pay a fixed annual fee, which provides them with access to their database. The fee includes:     

24 hour access to AssetMAXX All license and maintenance fees Unlimited help desk support Automated trending of values All system maintenance (database administration, network maintenance, etc…)

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

7. TERMS & CONDITIONS 1) AssetWorks shall provide guidance to the College in determining the data required for purposes of the contemplated services. The College further agrees to provide all data specifically requested, including documentation and information to AssetWorks in a timely manner. AssetWorks shall assume without incurring liability therefore, that all data so provided is correct and complete. 2) In the event that the College provides additional and/or corrected data, documentation and information at a later date, AssetWorks’ efforts with respect to such additional and/or corrected data, documentation and information shall be deemed additional services and compensated in addition to the fees set forth herein based on applicable hours, professional fees and expenses. 3) The College acknowledges project completion upon delivery of final reports. Final report delivery occurs only upon either acceptance of the preliminary reports data by the College or upon the passing of the two-week (10 business days) period of time after preliminary report delivery, whichever comes first. 4)

The fees proposed in this contract are valid for a period of 90 days.

5)

Insurance AssetWorks agrees to maintain, in full force and effect, at AssetWorks's expense, the following insurance coverages from an admitted carrier in the State of California with a Best Rating of A-VII or higher: (i) Commercial General Liability insurance naming College and the College’s Board of Trustees as an Additional Insured, with limits of not less than One Million Dollars ($1,000,000) including bodily injury, broad form property damage and blanket contractual liability, written on an "occurrence" form; (ii) Professional Liability Insurance with limits of not less than One Million Dollars ($1,000,000); (iii) Employer's Liability with limits of not less than One Million Dollars ($1,000,000) per occurrence; (iv) Workers' Compensation insurance as required by statutory insurance requirement of the State of California; and (v) Automobile Liability covering all owned, non-owned and hired vehicles with combined single limit for bodily injury and/or property damage of not less than One Million Dollars ($1,000,000). AssetWorks shall deliver Certificate(s) of Insurance and Additional Insured Endorsement(s) evidencing the required coverages to the College, which shall be subject to the College's approval for adequacy of protection. The Certificate of Insurance shall provide thirty (30) days prior written notice of cancellation. Certificates of Insurance and Additional Insured Endorsements must be provided to College prior to commencement of any Work under this Agreement. All certificates shall be mailed to: Santa Clarita Community College District, Attn: Contract and Procurement Services, 26455 Rockwell Canyon Road, Santa Clarita, CA 91355. To the extent a claim is not covered by the required insurance, each party agrees that each party’s total liability for any and all damages whatsoever arising out of or in any way related to this Agreement from any cause, including but not limited to negligence, errors, omissions, strict liability, breach of contract or breach of warranty shall not, in the aggregate, exceed the total amount of this Agreement. To the extent a claim is covered by the required insurance, each party’s total liability will be limited to the amount of required insurance.

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

6) Indemnification AssetWorks agrees to hold harmless and indemnify College, their parent, affiliates, subsidiaries, authorized representatives, directors, officers, agents and employees against any and all liability for any judgments, awards, expenses, fines, penalties, attorneys' fees, or other claims for damages in connection with any suit, complaint, charge, proceeding or action of any kind alleging a violation of any statutory or regulatory provision or otherwise arising out of any acts or omissions by AssetWorks, of its duties and responsibilities under this Agreement, unless such performance or nonperformance occurred at the direction of or was caused by College. This hold harmless and indemnification includes but is not limited to compensatory damages, punitive damages, regulatory fines and penalties, and extra-contractual liability. College agrees to hold harmless and indemnify AssetWorks, their parent, affiliates, subsidiaries, authorized representatives, directors, officers, agents and employees against any and all liability for any judgments, awards, expenses, fines, penalties, attorneys' fees, or other claims for damages in connection with any suit, complaint, charge, proceeding or action of any kind alleging a violation of any statutory or regulatory provision or otherwise arising out of any acts or omissions by College, of its duties and responsibilities under this Agreement, unless such performance or nonperformance occurred at the direction of or was caused by AssetWorks. This hold harmless and indemnification includes but is not limited to compensatory damages, punitive damages, regulatory fines and penalties, and extracontractual liability. The rights and obligations created by this indemnification provision shall survive termination or expiration of this Agreement. 7) The College and AssetWorks shall each retain ownership of, and all right, title and interest in and to, their respective pre-existing Intellectual Property, and no license therein, whether express or implied, is granted by this Agreement or as a result of the Services performed hereunder. To the extent the parties wish to grant to the other rights or interests in pre-existing Intellectual Property, separate license agreements on mutually acceptable terms will be executed. 8) AssetWorks will invoice for 70% of fees during the fieldwork portion of the project with the final contract amount invoiced with our draft reports. Invoices are due within 30 days of receipt.

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

AUTHORIZATION PAGE Please return a copy of this executed agreement to the attention of the undersigned via fax at 310-470-4903 and the original project fees page mailed back to this office. All professional fees outlined below are in US Dollars and include out-of-pocket expenses. The TOTAL investment is as follows:

Professional Services Fees Twenty Three Thousand Five Hundred Dollars ($23,500) * Asset Inventory @ $500 threshold

* Exceptions Reports

* Capital additions included

* Final Reports

* Land/Vehicles Updated

* AssetMAXX Annual Subscription

RESPECTFULLY OFFERED BY:

ACCEPTED BY:

AssetWorks, Inc.

Santa Clarita Community College District

Gregory N. Friz Director AssetWorks, Inc. Date: May 12, 2014

Signature Name Title Date

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

Exhibit A Inventory FY 13 - 14 Timeline 06/16/14

Notify all inventory satellite locations that AssetWorks will be conducting a physical inventory count the week of 6/23/14. District will send AssetWorks the Computer Support Department’s listing of new computers, monitors, and audio visual equipment as of 5/31/14 for input into the database (List #1) as well as deletes.

06/20/14

Final day for District input of new assets, disposals, and other changes into AssetMaxx.

06/23/14

AssetWorks arrives to begin the re-inventory process. AssetWorks' representative is issued master keys, a "Visitors" badge, and an updated list of our inventory satellite locations. ***Remind Jim Temple to not conduct any moving of computers during this week if at all possible***

07/07/14-07/18/14

District enters in new purchases for the month of June into AssetMaxx.

07/31/14

District receives the exception/problem reports from AssetWorks.

08/08/14

District e-mails Chris Periera the list of capital improvements and new buildings completed between 07/01/13 and 06/30/14 to be added. (Information gathered from Rosie Tse) District e-mails Chris Periera the "upload" list # 2 (computers, monitors, and audio visual equipment) of updated additions and deletions from 06/01/14 to 06/30/14.

08/22/14

District returns the exception/problem reports to AssetWorks.

09/05/14

AssetWorks e-mails report data to District for checking and auditing. This report should be reflective of all issues resolved through the exception/problem report submitted back to AssetWorks in addition to the "upload" list (#2) submitted to AssetWorks.

10/31/14

Final deliverables to district

After the College approves the data or works with Chris to resolve any discrepancies, AssetWorks will deliver the data disk and the binders to the College in addition to an excel workbook which includes all assets.

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Asset Re-Inventory & Valuation Services Proposal for: Santa Clarita Community College District May 12, 2014

Exhibit B Location Sites As of May, 2014 Aerospace Dynamics Inc. (Includes District Assets) 25571 Rye Canyon Rd., Santa Clarita, CA 91355 Joe Klocko 661-362-3111 Carina Aasted 661-362-3112 College of the Canyons Canyon Country Campus (Includes District Assets) 17200 Sierra Highway, Santa Clarita, CA91351 Ryan Thuele 661-476-3800 Jamie Page 661-362-3802 College of the Canyons Valencia Campus (Includes District Assets) 26455 Rockwell Canyon Road, Santa Clarita, CA91355 Gabriela Amezcua 661-362-5656 Culinary Arts Kitchen Space (Includes District Assets) 27911 Sloan Canyon Rd, Castaic, CA 91384 Cindy Schwanke 661-362-3294 Other Sites – The District will perform physical inventory and provide information to AssetWorks Camp Tahquitz 41631 State Hwy 38 Angelus Oaks, CA 923005 Golden Valley High School 27051 Robert C Lee Parkway, Santa Clarita, CA 91350

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