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To: Mayor & Council <br />FROM: Don Brager, Finance D.rector - 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 />RECOMMENDATION: Council 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 />