May 28, 1993RMA
Reese, Macon and Associates, Inc.
City of Okeechobee
55 S.E. Third Avenue
Okeechobee, FL 34974
ATTN: John J. Drago, City Administrator
RE: Appraisal
via facsimile
May 28, 1993
Dear Mr. Drago:
Per your request we have reviewed the proposed contract with Deighan for the
system appraisal work. The following items are relevant.
1. At our last meeting with the County, City, Deighan and their consultant,
we recall that a procedure for preliminary/final presentation and review
was proposed and agreed upon. This does not appear to be reflected in
the proposal.
2. Also, at the last meeting, our recollection was that Deighan's engineering
consultant agreed to provide an example procedure of how maintenance
records, for mechanical equipment, or pipeline flow tests and physical
observation, for distribution/collection systems, would be used to compute
the anticipate remaining life. We have not received this example. This
issue has been raised in virtually every letter, meeting and telephone
conversation we have had on this project. We continue to feel that close
definition of the procedure used for this purpose is extremely important
and could conceivably have an enormous effect on the final result.
Without this definition, the degree of subjectivity will be quite large,
making the result much more suspect by either, or both, parties. We
certainly understand there will be a degree of subjectivity in this exercise
which is the reason for selecting a reputable firm that can be trusted to
make fair and reasonable decisions. However, we do not see any reason
not to eliminate as much subjectivity as possible. Dur ing the course of the
study some type of procedure will have to be utilized to establish
remaining life. We are simply asking for detailed definition of the
procedure at this time, rather than after the report is complete.
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
Appraisal
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3. As before, we suggest that the general accounting approaches proposed for
this work be reviewed with the City's financial analyst.
If you have questions or wish to discuss this further, please call.
Very truly yours,
William D. Reese, P.E.