October 6, 1993;TATE-CERT. GEN. REM
JACK CRAHAN, MAI
11111343
October 6, 1993
Dear John:
Items 17A and 17B,
DEIGHANAPPRAISAL ASSOCIATES, INC
REAL ESTATE ANALYSTS AND CONSULTANTS
DANIEL IC. DEICHAN, MAI
11111344 2000 S.E PORT ST. LUCIE BOULEVARD, SUITEA
BURL WILSON, MN PORT ST. LUCIE, FLORIDA 34952
L. 11111513 (40, 335 -1405 FAX 0(40, 335 -1423
P. E. ROCKWELL, TREAS. REPLY TO:
PORT ST. LUCIE
Mr. John Drago, City Administrator
City of Okeechobee
55 S.E Third Avenue
Okeechobee, Florida 34974 -2932
RE: Utility System
Appraisal Requests
M1 EAST OCEAN BOULEVARD
STUART, FLORIDA SUM
(437)335.1435
761 NORTH FEDERAL HIGHWAY
THE HOYT CENTER SUITE 311 A
NORTH PALM BEACH, FL 33111
(117) 627.5357
Continuing the process begun in my letter to you dated 1/24/93, I will make current our
status regarding the items requested, as well as identify new items needing clarification
and /or comment.
Items received, or access obtained, and presently being reviewed are identified on the
attached list Reese -Macon and Associates will be furnishing item 7A (utility atlas
drawing and maps) in the next couple of weeks. Item 9 (PMG Financial pre -1981 Financial
record study) will be available after review by the City's auditors.
The new WTP site is situated in the northwest corner of a 151.59 acre parcel owned
by the City. It is bounded on the west by Taylor Creek and on the north by
Okeechobee City's boundary.
Access to the WTP site is by means of an access road from NE 12 Avenue via the
extension of NE 12th Street across the 151.59 acre parcel.
Seven of the utility's wells extend easterly from the WTP along the north boundary
of the 151.59 acre parcel.
For this appraisal assignment I would offer the following suggestion:
We calculate the size of the WTP site, using drawings by Bill Reese, and value the
fee simple interest of the site.
Mr. John Drago, City Administrator
October 6, 1993
Page Two
We estimate a surface /subsurface easement value for the access road and well sites.
The size will be calculated by us based upon anticipated discussions and input from
Bill Reese.
If the City wishes to modify either the size or the interest valued, please notify us as
soon as possible.
Item 22 (utility easements)
No legal descriptions or maps of utility easements have been furnished to date.
Presently, we are developing a surface /subsurface easement value for pumping /lift
stations sites and a subsurface easement value for the areas where the lines are
currently located. Easements sizes will be based upon industry standards obtained
from our engineer.
I need to know if the City is intending to charge a franchise fee for the use of these
city Right -of -Ways or whether the utility will retain title to the easements?
Thank you for your assistance.
Sincerely,
DEIGHAN APPRAISAL ASSOCIATES
JC litM (lPC,
Jack Crahan, MAI
cc: Chris Chinault
County Administrator
304 NW 2nd Street
Okeechobee, FL 34972
James Kirk, Mayor
55 SE 3rd Avenue
Okeechobee, Florida 34974
Skip Harvey
Williams, Hatfield Stoner, Inc.
1948 SE Port St. Lucie Boulevard
Port St. Lucie, Florida 34952
JC \TM310202.DOC
Charles W. Harvey, Chairman
304 NW 2nd Street
Okeechobee, Florida 34972
Dave J. Rivera, Finance Director
Board of County Commissioners
Okeechobee County
Okeechobee, Florida 34972
Date Date
Requested Received
1. County Contact Person 8/23/93 8/23/93
2. Okeechobee City's Contact Person 8/23/93 9/23/93
3. "Resolution #89-5 (updated listing) Listing of Utility
Rates" 8/23/93 8/23/93
4. "Comparison Analysis Water and Sewer Options
Okeechobee area Water and Sewer Task Force Final
Report 8/1991, "PMG Associates, Inc. 8/23/93 8/23/93
5. "City of Okeechobee Utility Rate Study," dated 12/91,
PMG Associates, Inc. 8/23/93 8/23/93
6. Proposed $5,000,000 bond for the City of Okeechobee,
"Water and Sewer Refunding Revenue" Bond Series
1992A. 8/23/93 8/23/93
7. Reese Macon Associates
A. Utility Atlas Drawings and Maps 8/23/93
B. "Hydraulic Analysis of the Water System" 8/23/93 10/1/93
C. "Proposed Water Treatment Plant Construction
and Per" 8/23/93 10/1/93
D. "Capital Improvement Needs" [Identified in
Master Plan and City Budget] 8/23/93 10/1/93
E. "Upgrading the Existing Water Treatment Plant"
report 8/23/93 10/1/93
8. Knepper Willard, Inc.
A. Wastewater System Plan 8/23/93 9/28/93
B. Capital Improvement Needs [identified in
Master Plan and City Budget] 8/23/93
C. Preliminary Engineering Report and /or
Plans for "Expansion of Wastewater Treatment
Plant" 8/23/93 9/28/93
D. Various Plans for Wastewater System Exten-
sions 8/23/93 9/28/93
9. "PMG Financial Pre-1981 Financial Record Study" 8/23/93 Currently being
reviewed by
auditors see PMG
letter 9/27/93
10. A. Independent Auditors' Report Hill, Barth
King, dated 2/10/92 8/23/93 9/21/93
B. "City of Okeechobee Utility System Financial
Analysis" prepared by PMG Assocs. 8/23/93 9/29/93
11. Final Draft "Governance Alternatives to Provide
Regional Water and Wastewater Services and Facilities
to the Urbanized Areas of Southern Okeechobee
County" Nabors, Giblin, et 4 report dated July 8,1992 8/23/93 9/23/93
12. A. 1987 Bond Documents 8/23/93 9/21/93
B. 1989 Bond Documents 8/23/93 9/21/93
C. 1992 to Present Bond Documents 8/23/93 9/21/93
Date Date
Requested Received
13. Miscellaneous inspection reports on the system condi-
tions of the City of Okeechobee Water and Sewer Utility
(E.G. Hydrant Tests, I/I Studies, Pipeline Samples or
Photographs) 8/23/93 WHS Reviewing{
Files on Site
14. A. City Updated Comprehensive Plan [Water and
Wastewater Elements] 8/23/93 9/28/93
B. County Updated Comprehensive Plan [Water
and Wastewater Elements] 8/23/93 9/23/93
15. A. Detailed, itemized accounting of funds spent
for the proposed water treatment facility. 8/23/93 9/21/93
B. Budgets reflecting unfinished and incomplete
work. 8/23/93 9/21/93
16. Time line of costs of any other ongoing projects relative
to or within the system. 8/23/93 9/21/93
17. A. Approximate land area and location of the new
water treatment site. 8/23/93
B. If any new well sites are to be located off -site,
where fee simple title is to be retained by the
City, then language reflecting the leasehold
interest or easement must be furnished. 8/23/93
18. Decision about the consideration of the abandoned
sewage treatment plant in the valuation; to include
either the pumping station and required supporting land
(size agreed upon) only, or existing land site plus
salvage value of the abandoned plant components.
8/23/93
See 9/24/93 letter
attached
19. Determination of the location and dimensions of the
site area induded with the water towers. 8/23/93 See 9/24/93 letter
attached
20. Decision regarding the inclusion of the operations
center, also known as the water maintenance barn, in
this valuation, with identification of the specific
dimensions of the site to be included. 8/23/93 See 9/24/93 letter
attached
21. A. Operation and maintenance reports 8/23/93 WHS reviewing,
files on site
B. Repair and rehabilitation studies 8/23/93 WHS reviewing,
files on site
C. Agency permit applications /approvals 8/23/93 WHS reviewing,
files on site
D. Historical cost summaries 8/23/93 DAA reviewing,
files on site
22. Legal Description or Maps of Utility Easements and /or
Parcels 8/23/93
JACK CRAHAN, MAI
#00003$3
DANIEL K. BERMAN, MAI
#0000244
L. BURL WILSON. JR, MAI
#0000113
September 24,1993
DEIGHANAPPRAISAL ASSOCIATES, INC:
Mr. John Drago, City Administrator
City of Okeechobee
55 S.E. Third Avenue
Okeechobee, Florida 34974 -2932
REAL ESTATE ANALYSTS AND CONSULTANTS
2000 S.E PORT ST LUCIE BOULEVARD, SUITEA
PORT ST. LUCIE, FLORIDA 34932
(407) 335 -1405 FAX 9(407) 335 -1423
P. E. ROCKWELL, TREAS. REPLY TO:
PORT ST. LUCIE
Re: Utility System
Appraisal Requests
Dear John:
I am currently reviewing the material you sent in response to our requests
numbered 9, 10A, 12A, 12B, 12C, 15A, 15B and 16.
I will pick up item 14A (City's current Comprehensive Plan Water and
Sewer Elements) on Tuesday, September 28, while I am in the utility
department doing research.
In regard to items 18, 19, and 20 and the land areas and legal interests we are
to appraise, our understanding and conclusions are based upon your letter
dated 9/17/93, and my conversations with Susan Groover and you on
9/23/93 and 9/24/93, respectively, as follows:
1. Item 18 (Abandoned Sewage Treatment Plant). The entire site is
currently owned by the city of Okeechobee as part of its general fund.
The abandoned plant occupies only a portion of the site. The head
works and pumping station parts of the plant are acting as a pump
station until replaced by a new pump station (presently in the
planning process). The city wants to retain ownership rights to the
entire site. Our appraisal will conclude an estimate of an easement
value for the area encumbered by the current plant and the
proposed pumping station. We will also estimate the salvage value
of the plant.
POI EAST OCEAN BOULEVARD
STUART, FLORIDA 3204
(417) 335-1415
744 NORTH FEDERAL HIGHWAY
THE HOYT CENTER SUITE 201 A
NORTH PALM BEACH, FL 33401
(417) 427.5457
John Drago, City Administrator
September 24, 1993
Page Two
2. Item 19 (Water Towers). Both sites are currently owned by the city of Okeechobee as part
of its general fund. Bids have been accepted (to be awarded October, 1993) for the
demolition of the SW 23rd Street tower. The site will still be encumbered by transmission
and distribution lines, as well as a pumping station for hydrogen peroxide. The city hall
tower will continue to be used until the proposed water treatment plant comes on line.
Our appraisal will arrive at
[a] an easement value for the entire SW 23rd Street site. including all site improvements
other than the tower, and
[b] an easement value for that part of the City Hall site encumbered by the tower,
including the tower and all appurtenant site improvements.
3. Item 20 (Operation Center /Maintenance Barn). This site is currently being jointly used by
the utility department and the road department. The utility's building is in the process of
being remodeled. We are to value the fee simple interest of the eastern portion of the site
(with site improvements and utility building) beginning from a line running north -south
about midway between the road building and the utility building.
If my understanding of any of the items discussed requires further clarification or
correction, please contact me as soon as possible.
Sincerely,
DEIGHAN APPRAISAL ASSOCIATES, INC.
Jack Crahan, MAI
cc Chris Chinault
County Administrator
304 NW 2nd Street
Okeechobee, FL 34972
Charles W. Harvey, Chairman
304 NW 2nd Street
Okeechobee, FL 34972
Daniel K Deighan, MAI
L. Burl Wilson, Jr., MAI
IC TM309186.DOC
lbi drago4.doc
James Kirk, Mayor
55 SE 3rd Avenue
Okeechobee, Florida 34974
Skip Harvey, P.E.
Williams, Hatfield Stoner, Inc
1948 SE Port St. Lucie Boulevard
Port St. Lucie, Florida 34952