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V /6' I <br /> 411 <br /> i <br /> TO: Mayor & Council <br /> ..4.1k <br /> FROM: Don Brager, Finance Director - Treasurer <br /> DATE: May 21, 1990 <br /> SUBJECT: Property Valuation Service <br /> The League of Minnesota Cities has established a low cost <br /> property valuation program with the assistance of American <br /> Appraisal Associates. For a fee of $125 per building American <br /> Appraisal Associates will determine the replacement cost of <br /> large buildings. An accurate replacement cost will assure the <br /> City that buildings are not overinsured or underinsured. If <br /> overinsured the City is paying unnecessary insurance premiums on <br /> the amount that the building is overisured. If underinsured the <br /> City would not realizee the full relacement value in the event <br /> of a total loss on the building. I have discussed this service <br /> with our insurance agent, Charles Clysdale, and it is his <br /> recommendation that the City have the City Hall and the <br /> maintenance garage valued by American Appraisal Associates. I <br /> . concur with our agent's recommendation. Total cost of this <br /> service would be $250. Since the insurance account is under <br /> budget I recommend that the cost of this service be charged to <br /> the insurance account 100-4190-480. <br /> Other City buildings and structures may be valued using a <br /> computerized program owned by our insurance agency, the <br /> Maguire Agency. The program will calculate current replacement <br /> values per type and size of building using values supplied by <br /> the Association of Independent Contractors. This is a free <br /> service that is provided to the City by our insurance agency. <br /> • 'r ` 0 • ` : ouncl authorize the appraisal of the City Hall <br /> and the maintenance garage by American Appraisal <br /> Associates at a cost of $250. to be charged to <br /> the City Hall insurance account: 100-4190-480. <br />