February 10, 1993RMA
Reese, Macon and Associates, Inc.
City of Okeechobee
55 S.E. Third Avenue
Okeechobee, FL 34974
ATTN: John J. Drago, City Administrator
RE: Utility Appraisal
Dear John:
February 10, 1993
This acknowledges receipt of the Deighan Appraisal Associates, Inc. response to
our 1/29/93 questions. The following items are relevant. The numbers correspond to
the original numbering scheme.
2. Our comments were related to the anticipated cost to interface during the
appraisal process and review, not just review. The comments regarding
review are appropriate. We simply do not feel the City should be "locked
in" to any costs for their consultants associated with this project without
knowing exactly what will be required.
5. We feel that every reasonable effort must be made to remove or reduce
the subjectivity of this work wherever possible. Therefore, the field work
is, in our opinion, necessary. We need to establish what tests will be run,
how many, how much City personnel involvement (manpower and
equipment) will we required and how this information will be utilized. An
example of how the value of a 25 year old, 2,000 ft., 8 -inch, cast iron water
main installed in a 10 ft. easement with 4 hydrants, 2 RSGV valves and a
C factor of 85 will be established would be useful. A comparison of the
above to the same pipe with a C factor of 60 would also be helpful.
8. We understand the need to "reconcile" the different approaches. Our
concern is with the subjectivity required. Perhaps the most reasonable
resolution of this matter is to have the appraiser include in the final report
a detailed description of the rationale, assumptions and mathematics
utilized to reconcile the different costs. This then, provides the reader
with the ability to consider and adjust if deemed reasonable.
9121 N. Military Trail Suite 207 Palm Beach Gardens, Florida 33410
Ph. (407) 625 -6660 FAX (407) 625 -6664
City of Okeechobee
Mr. John Drago
Page 2
We agree a meeting is appropriate to resolve the remaining items. Clearly, there
are cost implications, depending upon the direction selected. If you have questions,
please call.
wdr -023
93 -109
cc: J. Crahan
Very truly yours,
William D. Reese, P.E.