Board of Selectmen Special Meeting Materials (linked)

/
To;
From:
Date:
The Board of Selectmen
Rawle Dummett
October 06, 2021
Disposal ofaged assets
Dear Mr. Brule:
The Purchasing Agent, on behalf of the Utility Commission, respectfully seeks the
Board’s approval to dispose of the following assets in accordance with the Town
Property Ordinance, Chapter 2.112.020. These units have expired and are of no use to
the town.
100354
100355
100356
100357
100358
100359
SCOTT AIR-PAK
SCOTT AIR-PAK
SCOTT AIR-PAK
SCOTT AIR-PAK
SCOTT AIR-PAK
SCOTT AIR-PAK
One (1) Reading Truck Body removed from former Fire Services Vehicle W-46, No asset
ID available.
urchasing Agent,
/ Town of Waterford

July 8, 2021
Mr. Rawle Dummett ~ Purchasing Agent
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Re: Surplus Declaration — Scott Packs & the body of formerly W-46
Dear Rawle,
It is hereby requested that the body of formerly Oswegatchie FC- W-46 Utility vehicle [now UC
T-7 utility vehicle], be declared surplus and disposed as per your policies. There is not an asset
tag number associated with the body to be disposed.
In addition, the disposal of six (6) Scott Air Pack SCBA is requested. These units expired and
their use by Utility Commission personnel is no longer required. Their asset numbers:
100354 SCOTT AIR-PAK
100355 SCOTT AIR-PAK
100356 SCOTT AIR-PAK
100357 SCOTT AIR-PAK
100358 SCOTT AIR-PAK
100358 SCOTT AIR-PAK
Yours truly,
Neftali Soto - Chief Engineer
Utility Commission
Ce: Jim Bartelli — Assistant Director
Peter Clark - Foreman
Utility Commission





To: The Board of Selectmen
From: Rawle Dummett
Date: October 06, 2021
Re: Disposal of Aged Assets
Dear Mr. Brule:
The Purchasing Agent, on behalf of the Police Department, respectfully seeks the Board's
approval to dispose of the following assets in accordance with the Town Property
Ordinance, Chapter 2.112.020. These vehicles are scheduled to be disposed of in
accordance with the Fleet Plan.
ASSET ID: 101407 OLD CAR 13- IFMSK8AR1GGB89105- 2016 FORD SUV
ASSET ID: 101412 OLD CAR 10 - IFMSK8AR7GGB89111 - 2016 FORD SUV
ASSET ID: 101423 OLD CAR 11 - IFMSK8AR3GGB89106 - 2016 FORD SUV
ASSET ID: 101417 OLD CAR 19 - 1FMSK8AR5GGB89110- 2016 FORD SUV
ASSET ID: 101404 OLD CAR 5 - IFMSK8AR7GGB89108 -2016 FORD SUV
These vehicles have been replaced’ accordance with the fleet plan.
Thank y you. er ara aie
fer ~ xX)
Lo
Ne?
“ Town of Waterford =~

INTER-OFFICE CORRESPONDENCE
DATE: August 20, 2021
TO: Gary Schneider, Director of Public Works
FROM: Garon VanOverloop, Fleet Lead Mechanic
RE: Repurpose vehicles
I performed a vehicle assessment on two former police cruisers:
e OLDCARI3 1FMSK8ARIGGB89105 2016 FORD SUV, 135766mi
e OLDCARIO LFMSK8AR7GGB89111 2016 FORD SUV, 125036mi
This inspection was to determine if they could be repurposed for:
« - A8 LI4FF48S51L565909 2001 JEEP CHEROKEE, 117,899mi
© A20 IFMEU73E68UA17301 2001 FORD EXPLORER, 95,062mi
The two retired police cruisers would be able to fulfill the part time roles of the current
A9 & A20. A9 and A20 are in severe mechanical and cosmetic decline that require to be
taken out of service in the near future, A9 is currently used by the Assistant Public Works
Director and A20 is used by the town's mail courier. Both of these vehicles are currently
used in a “part time” role,
The following three surplus cruisers would not be beneficial for further use to the
town.
* OLDCARI1 IFMSK8AR3GGB89106
* OLDCARI9 1FM5K8AR5GGB89110
@ OLDCARS IFMSK8AR7GGB89108
For any questions, please feel free to contact me.
Garon VanOverloop
Fleet Lead Mechanic

To: The Board of Selectmen
From: Rawle Dummett
Date: October 7, 2021
Re: Disposal ofaged assets
Dear Mr. Brule:
The Purchasing Agent, on behalf of the Board of Education, respectfully seeks the
Board’s approval to dispose of the following assets in accordance with the Town
Property Ordinance, Chapter 2.112.020. This vehicle has outlived its usefulness to the
town and has been replaced in accordance with the fleet plan.
Old BOE 15, Asset ID: 500034, 2014 Dodge Caravan VIN - 2CARDGBG4ER376549
for you) con to
I mett /
Purchasing Agent/ -
Town of Waterford

To: Kim Allen - Director of Finance, Rob Brule — First Selectman
CC: Gary Schneider — Director of Public Works
From: Joseph Mancini, Director of Finance and Operations
Date: October 7, 2021
Re: Fleet Surplus
Kim,
The Waterford Board of Education. would like to surplus the following vehicle.
2014 Dodge Caravan _
Vin - 2C4RDGBG4ER376549
Asset ID -BOE15
License Plate — $31648
This is the one which was recently replaced and we are working to get on the road.
Thank
DAt 2
‘Joseph Mancini
15 Rope Ferry Road ° P.O, Box 284 * Waterford, CT 06385
Phone: 860-444-5849 * Fax: 860-444-5870 * www.waterfordschoals.org

To: The Board of Selectmen
From: Rawle Dummett
Date: October 18, 2021
Re: Disposal/Reassignment of Aged Assets
Dear Mr. Brule:
The Purchasing Agent, on behalf of the Recreation and Parks Department, respectfully
seeks the Board's approval to dispose of and reassign to the Utility Commission, the
following assets in accordance with the Town Property Ordinance, Chapter 2.112.020.
These assets have been replaced and are expected to enhance the efficiency of the Utility
Commission.
Asset 1D: 920403594 1980 John Deer [050 Tractor Serial Number | D50S003477
Asser 1D: N/A - 1984 Hudson Trailer Serial /VIN # LOHHSE 1 44E1 000246.
(L Lal BE TRIN
Z fod )
7" “Respecttuly a
Rawle Dumyett 7
Purchasing Agent

Inter-Office Correspondence
TO: Mr. Rob Brule - First Selectman
FROM: Tali Soto, PE - Chief Engineer Utility Commission
DATE: April 24, 2020
RE: Reassignment of Equipment
Dear Mr. Brule,
This is to respectfully submit for your consideration, the reassignment to the Utility
Commission of previously surplus declared equipment as follows: the JOHN DEERE 1050
tractor, S/N (VIN) # - 1D50S003477; and, the HUDSON trailer, S/N (VIN) #
LOHHSE144E1000246. Prior to been declared surplus, these two pieces were assets assigned
to the Recreation and Parks Department.
As previously detailed on the [future years] narrative associated with the Utility
Commission [CIP] fleet management plan, it is our desire to have some (Utility Commission]
light duty equipment to do some of the field repairs work in-house. This is a good start, and
at no additional cost, '
Respectfully Submitted for your Consideration,
Spo sie
Neftali Soto, Chief Engineer
Utility Commission
Attachment
ce: Rawle Dummett ~ Waterford Purchasing Agent
Jim Bartelli— WUC Assistant Director

Follow Up Flag: Follow up
Flag Status: Flagged
Tali,
Will you kindly prepare a Request for Reassignment of Equipment for items 4 48&51 on the attached spreadsheet, the
John Deere Tractor and Hudson Trailer. .
These items were originally assets of Recreation and Parks and have been replaced with current equipment, therefore
they are slated for surplus.
As we do not currently poses any construction equipment, these assets would be very beneficial to our operation. We
have borrowed this equipment on several previous occasions and are currently conducting in- house grounds
maintenance at our pump stations where this equipment will be well utilized.
Most recently, we unfortunately experienced two Low Pressure Sewer Force Main breaks which we “contracted out” the
repair, we could have addressed these deficiencies In-House if we had this equipment readily avallable. Although this
equipment is small and has its limitations, it would suit many of our current needs and do so without expending capita!
funds. This equipment is currently operational however will require some minor attention which we are very capabie of
providing.
In order for the Utility Commission to procure these assets ,a Request for Reassignment must be brought to the entire
BOS for their consideration,
Thank you.
Games AA, Bartellé
Assistant Director
Waterford Utility Commission
860-444-5886
860-460-9108 (Cell)




Memo
October 7, 2021
Mr. Robert J. Brule
First Selectman
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Re: Bid Waiver — Treated Salt
Mr. Brule:
The Purchasing Department on behalf of the Public Works Department, requests a bid waiver to
procure Salt for season 2021-2022 from Eastern Salt Company Inc.
The Town intended to continue with the pricing from last season but the vendor
encountered difficulty with the State at the eleventh-hour, and is unable to supply product
to anyone for this season. As a result, alternative pricing was sought from Eastern
Salt Company Inc., being the lone vendor able to provide pricing at this moment.
Funds 6
LB:
47
Rawle Dummett
Purchasing Agent,
Town of Waterford
Line Item 10130-55010 Town Aid Roads Improved.

Date: October 7, 2021
Re: Treated Road Salt
The Department has reviewed the quote submitted by Eastern Salt
Company Inc. and we find the product is acceptable for our use for
this winter.
Funds are available in line item 10130-55010. We would like to issue
a purchase order for an estimated 2,000 tons of the material to be
delivered on demand by notice from the Department to our site at
1000 Hartford Turnpike during the normal! working hours of 7:30.am —
3:00 pm Monday through Friday.

astern Salt Company, Inc.
August 18, 2021
Gary Schneider
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
" Dear Gary Schneider,
‘The following quote on Bulk Treated Road Salt is offered for your consideration.
Bulk Salt will be treated with-an anti-caking product called "FLOW EASE",
Bulk Treated Road Salt delivered to your location in Waterford, CT: $87.00 per ton
To place an order, please call:
617-389-7258
Prices will remain firm until April 30, 2022 if signed and returned by September 3, 2021. Please
. provide us with an estimate of the tonnage you may order to help us plan our inventory
K accordingly. Signed quote can be returned via fax: 978-251-8244.
ae
Jason PArchambault
Sales Representative
Estimated Tonnage:
Accepted by: Date:
Email:


Memo
October 14, 2021
Mr. Rob Brule
First Selectman
Town of Waterford
15 Rope Ferry Road Waterford, CT 06385
Re: Bid Waiver — Request for Bid Waiver for the Assessor’s Office
Mr, Brule:
The Purchasing Agent on behalf of the Assessor, seeks the Board’s approval of a bid
waiver for Specialized Services from Federal Appraisal LLC, These appraisal services
are specific to Millstone Nuclear Power Plant as mandated by the State, and should not
exceed $37,000.00, On account of the uniqueness of the services, and the vendor’s
expertise in Power Plant valuations, it would be in the best interest of the Town to have
these services performed by Federal Appraisal LLC,
on
wn
Funds will be ayatlable from 20501-57639 Revaluation.
on
Re aile Dummett aa
urchasing Agent,
Town of Waterford

TO: Robert Brule, First Selectman
Ce: Kimberly Allen, Finance Director
Rawle Dummett, Purchasing Agent
FROM: Paige Walton, Assessor
RE: Bid Waiver Request -- Federal Appraisal LLC
“DATE: October 14, 2021
" The Assessor’s Office respectfully requests a waiver of competitive bidding for appraisal services
specific to the Millstone Nuclear Power Plant, to be conducted for the 2022 state-mandated
revaluation.
While the attached quote is over the $25,000 threshold for bidding, the power plant appraisal services
required are very specific and unique in nature. Federal Appraisal LLC has completed similar
| appraisal-work for the Town of Waterford in the past and possesses a very specific level of expertise
| in the field of power plant valuation. -As such, Federal Appraisal LLC is uniquely qualified to conduct
the 10/1/2022 appraisal of the Dominion Nuclear Power Station.
Attachment:
Federal Appraisal LLC Quote

www.federalappraisal,com
September 14, 2021
Paige S. Walton, CCMA i
Assessor, Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Sent via email fo: pwalton@waterfordct.org
RE: Proposal/Engagement to Provide Appraisal and Consulting Services
Regarding the Market Value of the Millstone Nuclear Power Plant
Located in- Waterford, Connecticut
As of October 1, 2022
Dear Ms. Walton,
Federal Appraisal LLC (‘Federal’) is prepared to provide appraisal and consulting services regarding the above
referenced Property for you and the Town of Waterford (the “Client’). This proposal/engagement letter presents
Federal's understanding of the assets being appraised, the Client's appraisal needs, and Federal’s qualifications,
proposed services, and fees, Please indicate your acceptance of this proposal and engagement by counter signing
this letter and returning a signed copy to Federal.
Federal Appraisal ts uniquely qualified to provide appraisal and consulting services-regarding the Millstone Nuclear
Power Plant (the "Property” or "Subject”) described herein based on the facts that:
Federal has previously appraised the Millstone Nuclear Power Plant multiple times over multiple years
for property tax purposes.
Federal has appraised and reviewed appraisals on hundreds of power plants, including dozens of
nuclear power plants, across the country for property tax assessment purposes; See attached partial
list of nuclear power plant appraisals.
Federal appraisers are nationally recognized experts in the appraisal of utility properties, and
specifically power plants. See attached award-winning article, “The Appraisal of Power Plants’.
Mark Pomykacz regularly testifies to his complex appraisals, including many utility property appraisals,
and has been accepted as an expert witness in multiple states and jurisdictions, including on power
generation properties like the Subject, including in Connecticut;
Federal appraisers have attained the highest levels of education and professional accreditation,
including MAI’s, ASA's, MBA's in Business and Finance, Degrees in Engineering and Economics, and
are State Certified General Real Estate Appraisers;
Mark Pomykacz is designated as a business appraiser, as an ASA in Business Valuation from the
American Society of Appraisers.
Mark Pomykacz is designated as a commercial real estate appraiser in multiple states including
Connecticut, and as an MAI and an appraisal review specialist, Al-GRS, from the Appraisal Institute.
Our reports and services fully comply with USPAP, the Appraisal Institute, the American Society of
Appraisers, and the International Valuation Standards.

The scope of the Appraisal Report shall include complete analyses and a narrative appraisal report, written for the
Client's purpose and use, delivered in phases.
Federal agrees to provide the Client with the following scope of work, analysis and reporting:
*° Phase | ~Appraisal Report
o Provide information request documents and support.
Assist in gathering subject and market data within the Client's control.
Gather subject and market data within the public domain.
Conduct site inspection of the Subject;
Provide periodic verbal reports on the status of our work and on the findings of preliminary
analyses.
Develop an estimate of the market value of the Subject, Including consideration of the primary
approaches to value, highest and best use, and other requisite and appropriate appraisal
considerations and analyses; .
© If requested by the Client, Federal will also complete various allocations of value between taxable
._ and tax-exempt property, and between real and personal property;
© Deliver a full narrative Appraisal Report which will include schedules supporting the conclusions
contained in the Report, and as described herein, and sufficient for the Client's use in setting the
tax assessment for the Property.
* The Appraisal will comply with USPAP Standards
° Phase ll -- Additional Services >
o Additional appraisal review, consultation, deposition, or testimony on matters not addressed in
Phase | to the extent mutually agreed upon by the Client and Federal prior to commencing work.
ooo9o
°o
The Client may terminate the engagement before the commencement of or during any phase.
The Appraisal, Review, and Consulting Services will comply with the Uniform Standards of Professional Appraisal
Practice (“USPAP"), and the standards of the Appraisal Institute, and the American Society of Appraisers. The
Appraisal services will comply with the statutes and administrative rules of the state of Connecticut. Mark
Pomykacz will personally conduct and certify the Appraisal as a Member of the Appraisal Institute (MAP), &
General Review Specialist with the Appraisal Institute (‘Al-GRS’), an Accredited Senior Appraiser (“ASA”) in
Business Valuation with the American Society of Appraisers, and as a State Certified General Real Estate
Appraiser in Connecticut.
2, Dates of Value
Federal shail provide value conclusions as of October 1, 2022.
3. The Subject
Millstone is located at a former quarry site in Waterford, Connecticut. The site covers about 500 acres. The
Millstone complex was built by a consortium of utilities. Milistone 1 was initially shut down In November 1995,
before being permanently closed in July 1998. Units 2 and 3 continue to operate.
The units are operated by Dominion Generation. Dominion Resources, Inc., owns 100 percent of units 1 and 2 and
is majority owner of unit'3. Besides Dominion (93.5 percent owner), the owners of unit 3 include Massachusetts
Municipal Wholesale Electric Company (4.8 percent), and the Central Vermont Public Service Corporation (1.7
percent),
FEDERAL APPRAISAL LLG
2

nuclea
These details will be confirmed and accounted for by Federal during the course of completing the Appraisal.
3.1. Site Inspection
Federal is available to physically inspect the Subject, if requested.
4, Valuation Definitions and Assumptions
Federal will work with the Client to ensure that the various appraisal and valuation definitions and assumptions
employed in the Appraisal Report are appropriate for the client's purpose and use. For example, Federal will work
with the Client to ensure the Appraisal assumes proper definitions of value for Client's purposes. Examples of
general definitions are shown in following sections.
4.1, Market Value Concept
Below are definitions taken from The Dictionary of Real Estate Appraisal, sixth edition, published by the Appraisal
Institute. This value is often but not always equivalent to taxing jurisdiction's definition of the taxable value.
Market Value:
4. The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other
precisely revealed terms, for which the specified property rights should sell after reasonable exposure
in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each
acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue
duress.
2. Definition from USPAP". A type of value, stated as an opinion, that presumes the transfer of a property
(Le., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set
forth in the definition of the term identified by the appraiser as applicable in an appraisal.
3. Federal Register. The most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is
the consummation of a sale as of a specified date and the passing of title from seller to buyer under
conditions whereby:
Buyer and seller ara typically motivated;
Both parties are well informed or well advised, and acting in what they consider their best interests;
A reasonable time is allowed for exposure in the open market;
Payment is made in terms of cash in U.S. dollars or in terms of financlal arrangements comparable
thereto; and
The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
aegg
9
There are various concepts that often relate to market value in the context of property taxation. The concepts
include highest and best use and fee simple and leased fee estates.
Highest and Best Use:
1, The reasonably probable and legal use of vacant land or an improved property, which is physically
possible, appropriately supported, financially feasible, and that results in the highest value. The
' (USPAP, 2018 ed,).
2 42 CER, Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal
Register 29499, June 7, 1994).
FEDERAL APPRAISAL LEE
3

approaches to value: Cost Approach, Sales Comparison Approach, and income Approach. Federa
appraisal methodologies with legal counsel to ensure that the appraisal is consistent with Connecticut law and any
court precedents on the matter.
54, Sales Comparison Approach
Federal will attempt to estimate the market values of the Subject utilizing the Sales Comparison Approach. It
involves the comparison of sales (or offerings) of properties similar to the Ssubject. If the comparable sales are not
exactly like the subject, adjustments are made to the sale price of the comparable sales (or offerings). When
adequate data on sales allows the completion of the adjustment process, the Sales Comparison Approach is a
reliable method to determine value.
5.2. Income Approach
The Income Approach will also be considered in the Appraisal. The underlying principle in this approach is that
buyers invest in properties like the Subject for the satisfaction of receiving the anticipated future income. Federal
will attempt to replicate the analysis buyers and sellers would make on the expected income and any inherent risk,
Specifically, Federal plans to employ a discounted future cash flow ("DCF") method of the income approach. The
DCF approach estimates the value of the Facility by considering the prospective operational results and the
financial positions of the Subject, over multiple years. Federal expects to complete a DCF on the power plant
asset.
Federal will also attempt to evaluate the Facility using direct capitalization techniques. In this technique, income for
a single year is converted directly into an indication of value. This technique is useful because it is mathematically
the simplest income approach to complete. However, if it proves to be unsound as an independent appraisal
technique, Federal may attempt to utilize it as cross-checking technique and “range of value” indicator.
5.2.1. Electricity Price and Fuel Price Forecaster
Federal will utilize any appropriate forecast of electricity and fuel prices (“forecast”) supplied by an independent
forecaster engaged and patd.for by the Client. Federal assumes that the Client will engage a qualified forecasting
firm and that the forecast will be sound. Federal will work with the forecasting firm to ensure that the forecast can
be coordinated with and utilized in Federal's appraisal. Federal expects that the Client will ensure that the
forecasting firm will work with Federal to similarly ensure that the forecast can be utilized in Federal's appraisal. To
the extent professionally capable, Federal will conduct an independent review of the forecast. The Federal review
of the forecast will include a review of the qualifications of the writers of the forecast report, the certification and
general assumptions and limiting conditions of the report, and the purpose, use and scope of the report. To the
extent professionally capable, Federal will review the various analysis assumptions and methodologies. Even if the
Client engages a forecaster, Federal may still complete its own forecast of electricity and fuel prices.
If the Client does not wish to engage an electricity price forecaster, Federal will complete its own forecast of
electricity prices in order to complete the Appraisals using data from SNL and S&P Globa! Market Intelligence,
which is a subscription data service providing market data in the energy and utility industries,
5.2.2. Power Purchase or Other Agreements
Federal will consider the impact of any power purchase agreements (wholesale power contracts) or other major
contracts that are relevant as of the valuation date and as permissible under the applicable law, and market terms,
if required by applicable law. Federal will work with the Client and thelr counsel to ensure proper appraisal and
legal assumptions concerning major contracts for our Appraisals.
3 The Dictionary of Real Estate Appraisal. 5th ed, Chicago, Appraisal Institute.
FenpeRAt APPRAHSAL Lite
4

approach's ability to isolate specific assets that roll up to comprise overall value, the cost approach is commonly
employed, in conjunction with sales and/or income approaches, to complete residual and allocation techniques.
The income and/or the sales approaches are used to determine the overall value, and the cost approach is used to
determine the value of component assets to be excluded. The difference between the reconciled income or the
sales approaches and the cost approach yields the value of the residual asset.
5.4. Residual Valuation Techniques
When the appraisal assignment calls for it, various techniques, such as allocations, residuals, or summations may
be made to or with the various elements or components of the concluded values from the three traditional
approaches, in order to determine overall asset values or parts of a overall value.
6. Client Furnished Data and Access
In order to complete our analyses in a timely manner, the Client must provide certain information. This information
should include but not be limited to the data included with Information Request, which Is attached to this proposal.
We understand certain information may not be available and we will work with the Client to obtain this information.
Throughout the project we reserve the right to request other available data that we may deem as appropriate to
complete our appraisals.
7. Legal, Accounting, and Engineering Services
Federal is not a legal, accounting, or an engineering services provider. Federal will either work with attorneys,
accountants or engineers contracted or employed by the Client, or will contract for such services and bill the Client
for the contract expense. These services may or may not be needed.
8. Qualifications
Federal Appraisal, LLC is an international valuation-consulting company that provides appraisals, valuation-
consulting and litigation support services to clients worldwide. Our valuation practice includes 10 professionals
comprised of designated appraisers and degreed engineers who possess advanced degrees in business,
accounting, and finance.
Federal provides valuation advisory services to support all major industries including: biofuels facilities (ethanol and
biodiesel plants), public utilities (electric power, transmission and distribution; water; etc.), oil, gas and energy,
mining, high technology, aerospace, telecommunications, railroads, general commercial and investment real estate,
government and defense, manufacturing, retail, chemical, aerospace, finance, healthcare and other industries.
This project will be managed and performed under the direct supervision of Mr. Mark Pomykacz. Mr. Pomykacz is
the founder and Managing Partner of Federal Appraisal, LLC.
Mr. Mark Pomykacz, MAI, ASA, Al-GRS has over 34 years of experience in teal estate consultation and
appraisal services and has developed expertise in complex and non-traditional valuation consulting services. He
has provided numerous consultation services including tax and audit valuation, underwriting, due diligence, capital
markets, rent/buy/sell pricing decisions, feasibility and market analyses, and litigation support. Mr. Pomykacz has
also worked on all property types including investment properties, corporate real estate, vacant land and special
purpose properties, and has written special purpose reports, executive summary reports, full narrative appraisals,
market and feasibility studies, yield and after-tax analyses, and damages estimates. In addition to expert real
estate valuation, appraisal and consulting experience, Mark has extensive experience in real estate asset
management, computer database and application development, and management for real estate.
FEDERAL APPRAISAL Eee
6

property owner provide any needed property informat o
p
p
y
y
understands and accepts that other factors, which are not under the control of Federal, may delay the delivery of
Federal’s oral and written Appraisal Reports.
410. Professional Fees and Expenses
The professional fees are based on the estimated time required to complete the service and on the level of
expertise required. The fees and expenses are described as follows.
Professional Fee Schedule
Phase I: Appraisal Report
One Summary Appraisal Report, as discussed in Sections 1 $37,000, plus expenses
through 9 concerning Phase | services of this proposal. This fee
excludes reimbursable expenses.
Phase lt; Additional Consulting, Preparation, Testimony,
and/or Deposition
Additional consultation on matters not addressed in Phase | and Billed hourly, at rates below
as agreed on by the parties, including but not limited to appraisal
review, consulting services, preparation for deposition and trial,
or providing testimony at deposition and trial, etc. This fee
excludes reimbursable expenses,
Hourly Rates Schedule for Phase Il ‘
Testimony and Depositions | Partner / Director $ 390.00
An hourly rate based on the number of hours testifying
or being deposed, plus reimbursable expenses.
Other Consulting Services Partner / Director $ 285.00
An hourly rate based on the number of hours providing | Manager $ 235.00
other valuation consulting services, such as appraisal | Consultant $ 180.00
review services, litigation support, forensic consulting, Administrative Support $ 70.00
meetings, research and analysis, trial preparation, plus
reimbursable expenses.
The Client may terminate the engagement at any time, and will pay for Federal’s time and expenses to date.
All quoted hourly and daily professional fees apply to the 2021 calendar year. These rates are subject to an annual
escalation rate of 5.0 percent beginning January 1, 2022.
16.1, Retainer
Federal requires a retainer of 50 percent of the fee for each phase of service, payable upon Client's authorization
for Federal to commence work on that phase.
10.2. Billing Frequency
Federal will submit monthly invoices for professional fees and reimbursable expenses incurred to date.
10.3. Expenses
The Fees proposed do not include reimbursable expenses, which the Client agrees to pay. Reimbursable
expenses shall include, but shall not be limited to; all travel, research data, express mail, data collection charges,
FEdDERAL APPRAISAL LEC
8

and accepts that the scope of the Appraisal may change based on the Client s decision to authorize or not
authorize reimbursable travel. Federal will notify the Client immediately should the Appraisal necessitate travel,
without which could result in a substantial change to the scope and Fee of the Appraisals.
41. General Terms and Conditions and Client’s Scope of Work
This proposal and engagement is subject to the attached general terms and conditions.
12. Engagement Acceptance
Please indicate your ‘acceptance of this proposal and engagement by signing this letter below and returning a
signed copy to Federal.
It has been my pleasure to provide this proposal to you, and | hope to have the pleasure of working with you soon.
In the meantime, please feel free to contact me with any appraisal questions or concerns.
Very Truly Yours
Mark Pomykacz, MAI, ASA, AIl-GRS
Managing Partner
Accepted and agreed to by:
Signature:
Name:
Title:
Company:
Date:
FEDERAL APPRAISAL Lic
7

consulting and any report or work product, services or deliverable about the proposed services, stu y, pp
,
research, consulting, services or analysis. Further, the term “Federal” means Federal Appraisal LLC and its
employees(s), consultant(s), appraiser(s), and service provider(s).
4,
Fees, Expenses, Travel and Testimony. The fees listed in the proposal, engagement letter or contract to
which these terms are appended or referred to, including the exhibits, include Federal's best estimates of fees,
travel and other expenses as Federal currently foresees them. The current engagement plan includes
allowances for the elements and conditions that Federal expects to encounter in the course of the assignment.
In the event that Federal actually encounters situations, which require a revision or modification in the fees,
Federal will discuss with the Client the causes and likely effects of the required modification, both in terms of
delivery and fees. The Client will approve the modifications or will terminate the engagement and pay Federal
a fee based on the time and expenses incurred through the termination date. The fees listed in the proposal,
engagement letter or contract does not include fees for appearance in court or hearings, or preparation time for
such appearances, unless such fees are explicitly listed In the proposal, engagement letter or contract.
Payment of Invoices. invoices for which payment is not received within sixty (60) days of the invoice date shall
accrue a late charge of the lesser of (i) 1% per month or (ji) the highest rate allowable by law, in each case
compounded monthly from the invoice date. Without limiting its rights or remedies, Federal shall have the right
to halt or terminate entirely its Proposed Services until payment is received on past due invoices.
Term. Unless terminated sooner in accordance with its terms, this engagement shall terminate on the
completion of Federal's Proposed Services. The Client or Federal may cancel this Agreement at any time, with
or without cause, upon written notice to the other party. If at any point during the engagement the decision is
made to discontinue Federal Proposed Services, Federal fees will be based upon the time and expenses
incurred through that date. In that event, Federal Invoices will be due and payable immediately, Regardless of
the date of termination, Federal shall be entitled to their fees to the date of termination based on the fee
determination criteria,
Survival. The provisions of the Proposal and this Genera! Contract Assumptions and Limiting Conditions shall
survive the expiration or termination of this engagement.
time Limitation on Actions. Unless the time frame is shorter under applicable law, any legal action or claim
relating to Federal’s services shall be filed in court (or in the applicable arbitration tribunal, if the parties to the
dispute have executed an arbitration agreement) within one (1) year from the date of delivery to Client of the
appraisal report to which the claims or causes of action relate or, in the case of acts or conduct after delivery of
the report, two (2) years from the date of the alleged acts or conduct. The time frame stated in this section
shall not be extended by any delay in the discovery or accrual of the underlying claims, causes of action, or
damages. The time frame stated in this section shall apply to all non-criminal claims or causes of action of any
type.
Force Majeure. Federal shall not be liable for any delays in the delivery of Proposed Services resulting from
circumstances or causes beyond its reasonable control, including, without limitation, the actions or inaction of
others which Federal is dependent on to complete the Proposed Services, the action of others which causes
Federal delays, fire or other casualty, act of God, strike or labor dispute, war or other violence, or any law, order
or requirement of any governmental agency or authority. .
Entire Agreement. These General Contract Assumptions and Limiting Conditions, and the proposal,
engagement letter or contract to which these terms are appended, and possibly including the exhibits and other
appendix, constitutes the entire agreement between Federal and Client with respect to the subject matter
hereof and supersedes all other oral and written representations, understandings or agreements relating to the
subject matter hereof,
FEvdpERAL APPRAISAL LEC
8

40.
11.
12.
these terms are appended, including the exh b t ,
g
y,
laws of the State of New Jersey (without giving effect to the choice of law principles thereof), The venue for
any legal proceedings by the Client against Federal shall be the Superior Court of New Jersey of Hunterdon
County. Client also waives the right to a trial by jury in any legal proceeding against Federal. If any provision of
these terms is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the
other provisions, but such unenforceable provision shall be deemed modified to the extent necessary to render
it enforceable, preserving to the fullest extent permissible the intent of the parties set forth herein.
Arbitration. Any controversy or claim arising out of or relating to the Proposed Services, or the breach thereof,
shall be settled by arbitration conducted in accordance with its Commercial Arbitration Rules, and judgment on
the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The arbitration
shail utilize a single arbitrator, who must be a Member of the Appraisal institute, MAI. The prevailing party shall
be entitled to recover their reasonable arbitration expenses from the losing party. The arbitration shall take
place in New Jersey.
Affirmative Action Covenant. Federal hereby incorporates by reference the mandatory affirmative action
language of Subsection 3.4(a), N.J.A.C. 17:27-3.4 and NLA.C, 17:27-5.3 as promulgated by the Treasurer of
the State of New Jersey pursuant to P.L. 1975, ¢.127, as amended and supplemented from time to time, and
Federal agrees to comply fully with the terms, the provisions and the conditions of Subsection 3.4 and of
Section 5.3.
Political Contribution Disclosure. Federal does hereby attest that Federal, its subsiclaries, assigns or
principals controlling in excess of 40% of the company has neither made a contribution, that is reportable
pursuant to the Election Law Enforcement Commission pursuant to N.J.S.A, 19:44A-8 or 19:44A-16 in the one
(1) year period preceding the award of the contract that would, pursuant to P.L. 2004, c.19, affect its eligibility to
perform this contract, nor will it make a reportable contribution during the term of the contract to any political
parly committee in the municipality/county when the contract is awarded, ar to any candidate committee of any
person serving in an elective public office of that municipality/county when the contract is awarded.
information and Data Sources
13,
14.
15.
Confidentiality. It is understood and agreed that Federal's Proposed Services will be prepared in accordance
with the requirements of USPAP of the Appraisal Foundation, and the Proposed Services will comply with the
Appraisal Institute's Code of Professional Ethics and Standards of Professional Practice and with The American
Society of Appraisers’ Principles of Appraisal Practice and Code of Ethics. These standards include
confidentiality standards.
Cooperation Client shall cooperate with Federal in the performance by Federal of its Proposed Services,
including, without limitation, providing Federal with reasonable facilities and timely access to data, information
and personnel, agents and representatives of Client. Client shall be responsible for the performance of its
employees and agents and for the accuracy and completeness of all data and information provided to Federal
for purposes of the performance by Federal of its Proposed Services,
Client Representations. The Client will furnish or cause to be furnished to Federal such historical and other
information as Federal may have requested. The Client recognizes and confirms that (a) Federal will use and
rely on such information and on information available from generally recognized public sources (all such
information being the “Information’) in performing the Proposed Services without Federal having independently
verified the same; (b) Federal does not assume responsibility for the accuracy or completeness of the
Information; and (c) Federal will not make an appraisal of or conduct an audit of or otherwise provide any
opinion, report, or other form of assurance with respect to such Information. In addition to providing required
information, the Client will be responsible for providing historical and prospective financial statements and for
providing information about and responding to document requests on a timely basis. Additionally, Federal may
request and the Client agrees to supply a representation letter, in form and substance satisfactory to Federal
which, among other things, confirming the Client's responsibility for the historical financial statements and for
FEDERAL APPRAISAL Lic
8

47.
18.
19,
Other materials and information obtained from various professionally-appropriate public and private sources are
assumed to be reliable,
The information contained within the Proposed Services was obtained from sources deemed to be reliable.
Reasonable efforts, given the purpose, use and scope of the Proposed Services, , and the type and definition
of value, will be made to verify such information as reliable. However, no warranty or certification by Federal
will be given as to its rellability.
If substantive issues are later discovered in data relled upon, then the reported opinions in the Proposed
Services may need to be revised accordingly.
Property Specific Assumptions, Disclaimers and Limiting Conditions
20.
21.
22.
23.
24,
25.
Federal does not provide legal, accounting, audit, engineering, architectural or environmental sciences
services, Federal assumes no responsibility for matters of a legal nature, matters of title, or matters of audit, or
matters of engineering, or matters of environmental science, or matters of architecture. All legal, engineering,
architectural, environment, accounting and financial information provided to and utilized by Federal is assumed
to be reliable. .
Itis assumed that the title to the studied interest is marketable. it is assumed that there are no deed restrictions
or other limitation on title that would make the Subject substantially more or less valuable, other than those that
are specifically noted in the Proposed Services. It is assumed that the legal descriptions as obtained from
public records or as furnished are reliable. Federal has made no land survey and has completed no title search
of report of the Subject. it is assumed that there are no issues concerning subsurface, water, or mineral rights,
or alr or transferable development rights that would make the Subject substantially more or less valuable, other
than any that are specifically noted in the Proposed Services. It is assumed that there are no judgements, or
pending or future litigation concerning the Subject, other than those that are specifically noted in the Proposed
Services.
Except as noted herein, Federal assumes that there are no hidden or unapparent conditions at the Subject land
and/or improvements, which would render the Subject more or less valuable. Federal assumes no
responsibility for such conditions, or for engineering, environmental, legal or architectural counseling which
might be required to discover such conditions. We assume that there are no ADA issues sufficient to render
the Subject significantly more or less valuable,
Typically competent and responsible management and ownership are assumed.
It is assumed that there are no zoning or building code Issues, or other federal, state or local regulation
compliance issues concerning the Subject that would significantly Increase or decrease the value of the Interest
being appraised, unless noted in the Proposed Services.
Since Federal is not an engineering or an architectural firm, Federal makes no representation as to quality,
functionality, condition, limitations and size of the Subject, except that 4) Federal has relied upon what has
been reported to Federal as the best available data where said data was provided by others to Federal who
Federal believes to be an appropriate source of said data given the specific purpose, use and scope of work of
the Proposed Services, and the type and definition of value used In this Proposed Services, and 2) if an visual
inspection was conducted by Federal then Federal has relied upon the visual inspection. Given the inherent
FEDERAL APPRAISAL LL
1

27,
28.
Subject suffers no environmental or hazard issues, and that there are no contamination or health risks existing
at or near the Subject.
If substantive issues are later discovered in any of the data relied upon, then the reported opinions in the
Proposed Services may need to be revised accordingly.
The Proposed Services performed under this agreement will be subject to all statements, assumptions, limiting
conditions, and other conditions (collectively, “Appraisal Conditions”) set forth in the appraisal report. Cllent
agrees that Client will review the Appraisal Conditions upon receipt of the report and that Client's use of the
appraisal will constitute acceptance of the Appraisal Conditions. The Appraisal Conditions shall be considered
as being incorporated into and forming part of this agreement with respect to the appraisal in which they are
contained and to the services relating to that appraisal. The Appraisal Conditions will be similar to these
General Contract Assumptions and Limiting Conditions.
Publication, Distribution, Use of Study
29.
30.
31.
The opinions proffered in the Proposed Services are as of a specific date, for a specific client and users, for a
specific purpose and use, under a specific, limiting scope of work, and made under specific assumptions,
disclaimers, limiting conditions and certifications. Using the opinions proffered herein for any other use or
purpose {is unwise and inappropriate, and is prohibited unless authorized by Federal. The Client agrees that
a. The Client and other intended users are both explicitly named herein. The Client and the other intended
users are the only parties to whom the appraisers and Federal Appraisal LLC have a professional
responsibility to. The appraisers and Federal Appraisal LLC offer and assume no professianal responsibility
to any third parties that the Client and the other intended users may choose to provide copies of our report
to.
b. Any advice or recommendations, written or oral, provided by Federal in connection with this engagement is
exclusively for the Client and any intended usérs specifically named by Federal, and may not be disclosed to,
or replied upon by, any third party (other than the Client's legal and tax counsel for the client’s stated
purpose and use) without Federal's prior written consent;
c. Client will not refer to Federal by name or their services in any written materials relating to the Asset,
including without limitation, any publicly filed documents without their prior written consent for each
requested use or reference; and
d. Neither all nor part of the contents of the Proposed Services, or copy thereof, shall be conveyed to the public
through such forms or methods such as, but not limited to, advertising, public relations, news, sales or any
other media without prior written consent of Federal.
e. Nor shall Federal or any professional organization of which Federal are a member or candidate, be identified
without the prior written consent of Federal.
f. The Proposed Services may not be utilized in any present or proposed, public or private syndication or public
offering of any of the interests in the Subject uniess prior written agreement has been obtained from Federal.
g. The Proposed Services are intended to be utilized as a whole, and may not be used in parts.
Possession of the Proposed Services, or a copy thereof, does not give the holder the right of use or publication.
Disclosure of the contents of the Proposed Services by Federal is governed by the laws, by-laws and
regulations of state appraisal regulatory bodiés, the Appraisal Institute and the American Society of Appraisers.
Federal is authorized by the Client to disclose all or portions of the Proposed Services and the work files to
authorized representatives of the’state appraisal regulatory bodies, the Appraisal Institute, the American
Society of Appraisers, if such disclosure is required to enable Federal to comply with their respective laws, by-
FEDERAL APPRAISAL tte
41

Study Analysis Type and Format Conditions
33.
34.
35.
The Proposed Services shall be prepared in accordance with the requirements of USPAP of the Appraisal
Foundation, the Appraisal Institute, and the American Society of Appraisers. Jurisdictional exceptions may
apply. The Proposed Services will comply with and be subject to the Appraisal Institute's Code of Professional
Ethics and Standards of Professional Practice and with The American Society of Appraisers’ Principles of
Appraisal Practice and Code of Ethics.
Federal has determined the scope of work for this study based on its discussions with the Client, and their
reported needs, their reported purpose and intended use of the study. The scope of the study is limited to the
work necessary to provide for the Client's purpose and use of the study, and as such this study is not
recommended for any other use.
USPAP of the Appraisal Foundation prescribes 2 types of appraisal reports, “Appraisal Reports”, and Restricted
Appraisal Reports. A Restricted Appraisal Report may be provided when the client is the only intended user, or
when additional intended users are identified by name, and not by types or categories. Federal intends that the
use of all its reports are limited to the client and intended users. When reports are restricted, the Federal need
not provide as extensive reporting that may be found in Appraisal Reports. The use of Restricted Appraisal
Reports is limited to the client and the named intended user(s), Federal warns that Restricted Appraisal
Reports may not contain supporting rationale for all of the opinions and c