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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.