4-8-26 BOF Regular Meeting Agenda & Backup Documents

FIFTEEN ROPE FERRY ROAD PHONE: 860-442-0553
WATERFORD, CT 06385-2886 www.waterfordct.org
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Establishment of a quorum and call to order.
Public Comment
Approval and acceptance of the following minutes:
a. Budget Hearing Minutes on the dates of March 2, March 4, March 9, March 11, March 16, March
18, March 23 and March 25, 2026
b. Regular Meeting Minutes March 11, 2026
To consider and act on a request from the Assessor, Paige Walton, for a FY26 appropriation in the amount
of $28,000 from designated line #10140-57639 (Transfers to CAP & NE Funds) to appropriated line
#20501-57639 (CNR Revaluation), for Phase | of the revaluations services (restricted appraisal). Action
may include forwarding the request to the Representative Town Meeting (RTM) for approval.
To consider and act on a request from the Director of Fire Services, Chris Haley, for an Out-Of-Series
Transfer in the amount of $9,000 within the Fire Services budget as indicated on the following extract
from the Transfer Request Form. Action may include forwarding the request to the Representative Town
Meeting (RTM) for approval.
TOWN OF WATERFORD
TRANSFER REQUEST FORM
Out of Serles Transfer Request
FIRE SeRMICES. 2180
DEPARTNE
CURRENT ACCOUNT ACCOUNT REVISED.
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Board of Finance Agenda, April 8, 2026
Page 2
6.
7.
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Old Busines
New Business:
Liaison Reports:
Correspondenc
b.
Virginia Bielucki, Town Accountant, Periodic Financial Statements FY26 dated March 12, 2026.
Virginia Bielucki, Town Accountant, Status of General Fund Unassigned Balance dated March 12
2026.
Virginia Bielucki, Town Accountant, Status of Contingency FY26 dated March 17, 2026.
January 2026 Special Revenue Reports
February 2026 Special Revenue Reports
Capital Improvement Plan Statement by First Selectman, Rob Brule
Andrew ~ Waterford BOF Public Comment
10. Adjournment
Glenn Patterson, Chairman

FIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
PHONE: 860-442-0553
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Present: Glenn Patterson, Robert Tuneski, Michael Rocchetti, Bill Sheehan, Jerry Fischer, Ann Peabody,
Joseph Filippetti
Elected: Rob Brule, First Selectman; Sue Driscoll, RTM Moderator
staff: Kim Allen, Director of Finance; David Ferland, Lieutenant, Police Department; Rebecca Hall,
Administrative Assistant Finance Office/BOF Recording Secretary
1, Establishment of a quorum and call to order
A quorum was established and the Regular Meeting of the Board of Finance was called to order at
7:00p.m., March 11, 2026.
2 Public Comment: none
3. Approval and acceptance of January 14, 2026 Regular Meeting minutes:
Motion by Bill Sheehan and seconded by Michael Rocchetti to approve the minutes of the January 14,
2026 Regular Meeting with the correction of the name “Jerry Porter” to “Jerry Fischer” on items #3 and
#14d.
Vote: 7-0-0 Motion: Passed
4, Toconsider and act upon a request from the Chief of Police, Marc Balestracc, for an Out-Of-Series
‘Transfer in the amount of $20,000 to for fuel costs line #10129-53090 (Fuel & Lubricants) and
replacement of expired equipment Line #10129-53180 (Police Equipment & Supplies) as indicated on
the following extract from the Transfer Request Form. Action may include forwarding the request to
the Representative Town Meeting (RTM) for approval.
Mot
n by Bill Sheehan and seconded by Joseph Filippetti to transfer $20,000 as fotlows:

Board of Finance Minutes, March 11, 2026
Page?
TOWN OF WATERFORD
TRANSFER REQUEST FORM
‘Out of Sertes Transfer Request
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Vote: 7-0-0 Motion: Passed
Old Business: none
New Business: Discussion of the FY27 Projected Revenue Report provided by Kimberly Allen, Director of
Finance
Liaison Reports: none
Correspondence
Adjournment
Motion by Bill Sheehan and seconded by Michael Rocchetti to adjourn the Regular Meeting of the Board
of Finance at 7:25pm.
Vote: 7-0-0 Motion: Passed
Respectfully submitted,
Joh¢ (sill) w. Sheehan,
Rebecca L. Hall,
Clerk of the Board of Finance Recording Secretary

‘Town of Waterford Phone: (860) 444-5820
Assessor's Office Fax: (860) 444-5819
18 Rope Ferry Road
Waterford, CT 06385
TO: Robert Brule, First Selectman
Ce: Kimberly Allen, Finance Director
Shea Davy, Purchasing Agent
FROM: Paige Walton, Assessor
RE: Appropriation & Bid Waiver Request ~ Federal Appraisal LLC
DATE: March 3, 2026
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 2026 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 10/1/2026 appraisal of the Dominion Nuclear Power Station.
The Assessor's Office respectfully requests a flind appropriation in the amount of $28/000 from
Line 10404-57639 Transfers to Cap & NRE Funds for Phase | of the revaluation services (restricted
appraisal) provided by Federal Appraisal, LLC to line 20601-57639 CNR Revaluation:
SOVWHO
Thank you for your consideration to this matter.
Sincerely,
F Appr paation -
6oyS —— Ba- 3[nfate, Approve
Paige S. Walton
Assessor
Town of Waterford
Attachment:
Federal Appraisal LLC Quote


295 Route 22
908 $34 3590
Whitehouse St
y 08689 908.623.0575 tax
www federalappraisal com
Turning words and numbers into meat
1g and value
March 2, 2026
Paige S. Walton, CCMA II, Assessor, Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Pwalton@waterfordct.org
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
Waterford,
Dear Mr. Paige S. Walton, CCMA II, Assessor, Town of Waterford:
Federal Appraisal LLC (‘Federal’) is prepared to provide appraisal and consulting services regarding the above
referenced property for you (the Client") and No other intended users. This proposal letter presents Federals
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
A table of contents for this proposal is located in section 13,
Federal Appraisal is uniquely qualified to provide appraisal and consulting services regarding the referenced asset
(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
Auclear power plant appraisals.
‘+ Federal's appraisers are nationally recognized experts in the appraisal of utility properties, specifically
Power plants. See our award-winning article, “The Appraisal of Power Plants". Our other articles can be
found on our website, FederalAppraisal.com.
+ Federal appraisers have altained the highest levels of education and professional accreditation, including
MAl's (Designated Members of the Appraisal institute), ASA’s (Accredited Senior Appraisers with the
‘American Society of Appraisers, in business valuation), and are SCGREA’s (State Certified General Real
Estate Appraisers)
‘+ Federal Appraisal LLC has been serving for over 20 Years and Mark Pomykacz has been appraising for
40 years, and has completed appraisals on all types of complex assets and issues throughout the United
States, for all types of clients and contexts.
+ 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 the state where the Subject is located
‘+ Mark Pomykacz is designated as an MAI and an appraisal review specialist, Al-GRS, from the Appraisal
Institute. Mark Pomykacz is designated as a business appraiser, as an ASA in Business Valuation from

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
the American Society of Appraisers, Mark Pomykacz is designated as a commercial real estate appraiser
in mutiple states including the state where the Subject is located.
* Our reports and services fully comply with the Uniform Standards of Professional Appraisal Practice the
standards of the Appraisal Institute, the American Society of Appraisers and the International Valuation
Standards, GAAP, IRS and other governmental appraisal standards.
4. Purpose, Use and Scope of the Appraisal Review and Consulting Services
The purpose of this Appraisal is to determine the following Standard of Value. The Standard of Value will be The
Standard of Value for this Appraisal is market value/fair market value ("Value"). The purpose of this engagement
may include additional consulting services ("Consulting Services’), as needed, Federal will provide the Client with an
Appraisal Report (the "Report’). Federal understands the Client will use the Report to assist with the Subject’s
Property tax assessment. Federal shall prepare the Report and provide the Consulting Services for this purpose
and use.
Federal agrees to provide the Client with the following scope of work, analysis, and reporting, delivered in phase:
1. Phase ! Restricted Appraisal Services, for Tax Assessment Purposes
Provide information request documents and support
Assist in gathering Subject data and market data from the Client and the property owner
Gather Subject data and market data from within the public domain
Conduct site inspection of the Subject, if practical and necessary
Provide periodic verbal reports on the status of our work and on the findings of preliminary analyses
Research and analyze the appraisal problem, including researching and analyzing the proper scope of work,
appraisal context and definitions, appraisal assumptions and conditions, market data, economic data, Subject
physical, legal, and financial details, and highest and best use analysis
‘+ Develop an estimate of the value of the Subject, including consideration of the appropriate leading approaches
to value and other requisite and appropriate appraisal considerations and analyses
* When necessary for the Appraisal purpose and use, Federal will also complete various allocations of value
between taxable and tax-exempt property and between real and personal property and intangibles
© Deliver a Restricted Appraisal Reporting Services which may be limited to oral reporting or summary written
documentation that will include summary schedules supporting the conclusions contained in the Report and as
described herein, that are sufficient for the Client's purpose and use in Phase |, for case management and
planning, and negotiations.
.2.__ Phase ll -Narrative Appraisal Report, for Litigation
Provide information request documents and support
Assist in gathering Subject data and market data from the Client and the property owner
Gather Subject data and market data from within the public domain
Conduct site inspection of the Subject, if practical and necessary
Provide periodic verbal reports on the status of our work and on the findings of preliminary analyses
Research and analyze the appraisal problem, including researching and analyzing the proper scope of work,
appraisal context and definitions, appraisal assumptions and conditions, market data, economic data, Subject
physical, legal, and financial details, and highest and best use analysis
‘+ Develop an estimate of the value of the Subject, including consideration of all appropriate approaches to value
and other requisite and appropriate appraisal considerations and analyses
‘+ When necessary for the Appraisal purpose and use, Federal will also complete various allocations of value
between taxable and tax-exempt property and between real and personal property and intangibles
* Deliver full narrative Appraisal Report which will include schedules supporting the conclusions contained in the
Report and as described herein, that are sufficient for the Client's purpose and use, for
1.3. Phase lll - Consulting Services
‘* Additional appraisal, appraisal review, consultation, meetings, negotiations, depositions, or testimony services
not addressed in Phases | to the extent mutually agreed upon by the Client and Federal prior to commencing
work

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
The Client may terminate the engagement before the commencement of or during any phase.
‘The Appraisat and Consulting Services will comply with the Uniform Standards of Professional Appraisal Practice
C'USPAP"), and with the standards of the Appraisal Institute, and the American Society of Appraisers. Where
necessary the Appraisal and Consulting Services will comply with the Uniform Appraisal Standards for Federal Land
Acquisition (“Yellowbook”), GAAP, IRS and other governmental standards. The Appraisal services will comply with
the statutes and administrative rules of the state of where the assets are located. Mark Pomykacz will personally
conduct and certify the Appraisal as a Member of the Appraisal Institute ("MAI"), an Accredited Senior Appraiser
CASA’) in Business Valuation with the American Society of Appraisers, a General Review Specialist with the
Appraisal Institute ("Al-GRS"), and a State Certified General Real Estate Appraiser, when appropriate or required by
law.
1.4. Hypothetical Conditions
We shall employ the following hypothetical conditions or extraordinary assumptions in the Appraisal
No hypothetical conditions or extraordinary assumptions were made in this Appraisal
2. Dates of Value
Federal understands that the Appraisal and Consulting Services shall have an effective (appraisal) date October 1,
2026,
3. The Subject
The Subject improvements are summarized as follows:
Millstone is located at a former quarry site in Waterford, Connecticut. The site covers about 500 acres. The Milistone
‘complex was built by a consortium of utilities. Millstone 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).
Note that while Unit 1 is now permanently closed, the remaining physical and legal assets may have value or may
represent a liability. As part of this appraisal, Federal willfully analyze and report on the value, if any, of the remaining
assets at Unit 1
In recent years, a dry cask storage facility has been developed on the site for the intermediate term storage of nuclear
waste. Federal shall include these assets in its appraisal
There has been recent news that data center potentially being developed on site. If valuation services are needed
for this additional asset. it would fall under Phase III for consulting
These details will be confirmed and accounted for by Federal during the course of completing the Appraisal
3.1. Site Inspection
Federal intends to inspect the Subject as part of this Appraisal, if practical and necessary.
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 the Client's purposes. Examples of
general definitions are shown in the following sections.
Feoewat APPRAISAL ive
3

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
4.4. Market Value Concepts
Below are definitions taken from tionary of Real Es |, 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:
1. 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 alt 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 are 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 financial 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.
aoge
‘There are various concepts that often interrelated to the type of value appraised, and that depend on the
context of appraisal. 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
four criteria the highest and best use must meet are legal permissibilty, physical possibility,
financial feasibility, and maximum productivity.
5. Methodology
Federal will complete the Appraisal and Consulting Services through consideration of the three traditional approaches
to value: Cost Approach, Sales Comparison Approach, and Income Approach. Federal will consider the appraisal
‘methodologies with legal counsel to ensure that the Appraisal is consistent with local law and regulations, and any
court precedents on the matter.
5.1. Sales Comparison Approach
Federal will attempt to estimate the market value of the Subject utilizing the Sales Comparison Approach. It involves
the comparison of sales (or offerings) of properties similar to the Subject. If the comparable sales are not exactly like
the subject, adjustments are made to the sale price of the comparable sales (oF 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
» (USPAP, 2018 ed),
2 (12. C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at $7 Federal Register 12202, April 9. 1992: 59 Federal
Register 29499. Jue 7.1964).
Tie Oictionany of RealEstate Apomisal Shed. Chicago, Aporsaal insite
FEOERAL APPRATEAL We
4

Paige S. Walton, CCMA Ii, Assessor, Town of Waterford
RE: Proposai/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
attempt to replicate the analysis buyers and sellers would make on the expected income and any inherent risk
Specifically, Federal shall consider 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 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 utilze 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 paid 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 Federa''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.
Ifthe Client does not wish to engage an electricity price forecaster, Federal will complete its own forecast of electricity
prices in order to complete the Appraisal using data from SNL and S&P Global Market Intelligence, which is a
subscription data service providing market data in the energy and utility industries,
5.2.2, Major Agreements
Federal will consider the impact of major agreements or contracts (such as leases, power purchase agreements,
wholesale power contracts, fuel supply agreements, major supply or offtake agreements) 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 their counsel to ensure proper appraisal and legal assumptions concerning major
contracts for our Appraisals.
5.2.3, Cost Approach
The Cost Approach is based upon the premise that an informed purchaser would pay no more for an asset than the
cost of constructing a substitute asset with the same utility as the subject asset. Also, cost approach techniques may
bbe utilized to determine the value of parts of the Subject, such as personal property, intangibles, and exempt property.
‘Among the three traditional approaches, the cost approach has the distinct advantage of usually including in its value
indication only those assets explicitly included in its analysis. Further, given the cost 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
5.3. _ Residual and Allocation 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 an overall value. When necessary, Federal will consult with
legal, accounting and engineering experts in order to determine proper residual and allocation execution.
6. 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 expense. These services may or may not be needed. The Client recognizes that such assistance to Federal
may be necessary in order to complete the appraisal process.
FEDERAL APPRAISAL ive
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Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
7. 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, or
to develop alternative appraisal methodologies. Throughout the project we reserve the right to request additional
data that we may deem as appropriate to complete our appraisals.
‘Our appraisal information request list is attached hereto in Information Request, Section 16, page 23.
8. Qualifications
Federal Appraisal, LLC is an appraisal and advisory company that provides appraisals, valuation-consulting, and
litigation support services to clients worldwide. Our valuation practice includes 8 professionals comprised of
designated appraisers who have developed expertise in the appraisal of complex property types and complex
appraisal issues.
Federal provides valuation advisory services to support all major industries including general commercial and
investment real estate, public utilities (electric power generation, transmission, and distribution), water and sewer,
petroleum refining, storage, and pipelines, natural gas pipelines and storage, biofuels facilities (ethanol and biodiesel
plants), telecommunications assets, railroads, mining, high technology facilities, and aerospace assets, Our services
are utilized by big and small businesses, accountants and attomeys, governments, lenders, manufacturers,
healthcare providers, and other industries.
8.1, Mr. Mark Pomykacz, MAI, ASA, AI-GRS, SCGREA
This project will be managed under the direct supervision of Mr. Mark Pomykacz.
Mark Pomykacz has over 40 years of experience in real estate and business appraisal services and has developed
nationally recognized expertise with complex and non-traditional asset types and issues, Mr. Pomykacz is the
founder and Managing Member of Federal Appraisal, LLC. His full resume is appended hereto. References are
available upon request.
9. Deliverables and Appraisal Delivery Date
Federal will work with the Client to establish a delivery schedule suitable for their needs. Generally, we expect that it
will take 4 to 6 weeks to complete and deliver the Phase | Appraisal Report. Expedited services are available upon
request. The Report deliverables include electronic copies of the Reports. Federal agrees to provide hard copies of
the deliverables to the Client, at the Client's expense.
Any delivery dates are contingent upon the Client authorizing Federal to begin work, and upon the Client and the
Property/asset owner providing any needed information and access in a timely manner. The Client understands and
accepts that other factors that are not under the control of Federal may delay the delivery of Federals status in
‘completing oral and written deliverables and reports.
FEOEGRAU APPRAISAL ite
6

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuciear Power Plant
10. 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: Restricted Appraisal Services $28,000
Restricted Appraisal Services, as discussed in Sections 1 through plus expenses
9 concerning Phase | services of this proposal. This fee excludes
reimbursable expenses.
Phase Il: Full Appraisal Services $17,000
One Full Narrative Appraisal Report, as discussed in Sections 1 plus expenses
through 9 concerning Phase | services of this proposal. This fee
excludes reimbursable expenses.
Phase Ill: Additional Consulting, Meetings, Negotiations,
Preparation, Testimony, and/or Deposition Billed hourly, at rates below,
Additional consultation on matters not addressed in Phases | as plus expenses
agreed on by the parties, including but not limited to appraisal
review, consulting services, meetings, negotiations, preparation
for deposition and trial, or providing testimony at deposition and
trial, etc. This fee excludes reimbursable expenses.
Hourly Rates Schedule for Phase Ill
Testimony and Depositions | Partner / Director $550.00
‘An hourly rate based on the number of hours testifying
or being deposed, plus reimbursable expenses
Other Appraisal or Consulting Services | Partner / Director $425.00
An hourly rate based on the number of hours providing | Manager $ 350.00
other valuation consulting services, such as appraisal | Consultant $225.00
review services, Iiigation support. forensic consulting, | Administrative Support $90.00
‘meetings, research and analysis. trial preparation, plus
reimbursable expenses.
Alll quoted hourly and daily professional fee rates apply to the 2026 calendar year. These rates are subject to an
annual escalation rate of §.0 percent beginning January 1, 2027.
This fee proposal is valid for 90 days from the date of this document. However, please note that any delays in
authorizing us to start work may result in delays to the scheduled delivery date of our appraisal work.
10.1. Setup Cost Payment
Federal requires an initial setup cost payment of 50% for Phase I, 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, and report
FEOERAU APPRAISAL tte
7

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
‘and document processing expenses incurred by Federal. Reimbursable expenses shail also include a fee for data
subscription services providing market data, including electricity, capacity and fuel price forecasts, demographics,
‘market surveys and comparable sales data and documentation. Reimbursable expenses shall also include all
governmental charges and costs to Federal arising due to this contract, including costs to Federal for business and
appraisal licenses, permits, fees and registrations, applications, tax clearances, and certifications of authority, and
foreign registered agents and certificates of insurance
Travel expenses shall include any expenses associated with travel to/from the Subject or meetings related to the
project. Federal will obtain the approval of the Client prior to planning reimbursable travel. The Client recognizes and
accepts that the scope of the Appraisal may change based on the Client's decision to authorize or not authorize
reimbursable travel and other reimbursable expenses. 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.
10.4. Cancelations and Terminations
The Client may terminate the engagement at any time, and the Client will pay for Federal's time and expenses to
date
Federal will charge a $450 fee per day, plus any out-of-pocket expenses, for any cancelled appearances.
Appearances shall include hearings, testimony, or depositions, whether in person, by telephone or by internet video,
(or any meetings or other appearances that require travel out of state, that are scheduled in advance and intended to
last more than 3 hours per day, or any meetings or other appearances that require travel out of state.
10.5. Banking Fees and Transaction Charges
‘The Client hereby acknowledges and agrees that it shall be solely responsible for all banking fees, transaction costs,
and related charges incurred in connection with the use of a credit card or other electronic payment method, In the
event the Client elects to remit payment by credit card, a processing fee equal to four percent (4%) of the total invoiced
amount shall be added to the invoice. In the event the Client elects to remit payment through the QuickBooks payment
link, a flat transaction fee of twenty five dollars ($25.00) shall be applied to such payment.
11. Reference to General Terms and Conditions
This proposal and engagement is subject to the attached general terms and conditions. See Section 14, page 11
FEDERAL APPRAISAL cic
8

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant.
12. Engagement Acceptance and Signatures
Please indicate your acceptance of this proposal and engagement by signing this letter below and returning a signed
copy to Federal.
ithas 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, Al-GRS
Managing Partner
March 2, 2026
Accepted and agreed to by
Signature
Name:
Title
Company:
Date:
FEDERAL APPRAISAL (Le
9

Paige S. Walton, CCMA Il, Assessor, Town of Waterford
RE: ProposaV/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
13. Table of Contents
1.__ Purpose, Use and Scope of the Appraisal Review and Consulting Services.
Phase | -Restricted Appraisal Services, for Tax Assessment Purposes
Phase Il -Narrative Appraisal Report, for Litigation 2
Phase Ill - Consulting Services
Hypothetical Conditions
2. Dates of Value -
3. The Subject
3.1. Site Inspection
4 Valuation Definitions and Assumptions,
4.1. Market Value Concepts
5. Methodology
5.1. Sales Comparison Approach
5.2. Income Approach
5.3. Residual and Allocation Valuation Techniques.
8. Legal, Accounting, and Engineering Services
7. Client Furnished Data and Access
3. Qualifications
2
BOR
1
1
1
1
3.1. Mr. Mark Pomykacz, MAI, ASA, AI-GRS, SCGREA
Deliverables and Appraisal Delivery Date
10. Professional Fees and Expenses
10.1. Setup Cost Payment
10.2, Billing Frequency..
103, Expenses
404. Cancelations and Terminations.
105. Banking Fees and Transaction Charges.
14. Reference to General Terms and Conditions,
12. Engagement Acceptance and Signatures
13. Table of Contents,
14. General Terms and Conditions
15. Resumes
16. Information Request.
17, Federal Appraisal LLC - The Appraisal of Power Plants
OMMOVINVHODAATE DDR WWWWUNNNN
FEDERAL APPRAISAL ite
10

Paige S. Walton, CCMA II, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuciear Power Plant
14, General Terms and Conditions
‘This Contract and the services proposed are subject to the following general assumptions, disclaimers, and limiting conditions,
In this section, the term Proposed Services can mean proposed services, study, appraisal, research, analysis, consulting, any
Feport or work product, services or deliverable about the proposed services, study. appraisal, 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).
1, Foes, 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 estmates 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 during the assignment. In the event that Federal encounters situations that 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 deliverables, delivery schedule. and fees. The Client will approve the modifications or will terminate the
‘engagement and pay Federal a fee based on the lime and expenses incurred through the termination date, The fees listed in
the proposal, engagement letter, and contract do not include fees for appearance in court, hearings, or preparation time for
such appearances, unless such fees are explicitly listed in the proposal, engagement letter. or contr
2. Payment of Invoices. Invoices for which payment is not received within sixty (80) days of the invoice date shall accrue a late
‘charge of the lesser of (i) 1% per month or (i) the highest rate allowable by law, in each case compounded monthly, beginning
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.
3. Term, Uniess terminated sooner in accordance with its terms, this engagement shall terminate on the completion of Federat'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,
4 Survival The provisions of the Proposal and this General Contract Assumptions and Limiting Conditions shall survive the
‘expiration or termination of this engagement.
5 Time Limitation on Actions. Unless the time frame is shorter under applicable law, any legal action of claim relating to
Federal s services shall be fied 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.
6 Force Majeure. Federal shail 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 of
authority
7 Entire Agreement. These General Contract Assumplions and Limiting Conditions, along with the proposal, engagement
{etter, or contract to which these terms are appended, 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.
& Assignment. Except as provided botow, neither party may assign, transfer, or delegate any of the sights or obligations
hereunder without the prior written consent ofthe other party. Federal may assign or subcontract potions ofits rights and
obligations hereunder to any affiliate of Federal, without the consent of Client, for the purpose of completing the Proposed
Services.
9% Governing Law and Severability. These terms, and the proposal, engagement letter, or contract to which these terms are
‘appended, including the exhibits, shall be govemed by and construed in accordance with, the laws of the State of New Jersey
(without giving effect to the choice of law principles thereof). The venue for any legai proceedings by the Client against
Federal shall be the Superior Court of New Jersey of Hunterdon County. Client also waives the nght to a tial 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
FeDeRat APPRAISAL Le
"

Paige S. Walton, CCMA Il, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
‘modified to the extent necessary to render it enforceable, preserving to the fullest extent permissible the intent of the parties
set forth herein,
10. Arbitration. Any controversy or ciaim 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 shall utlize a single arbitrator, who
mustbe 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,
11. Affirmative Action Covenant. Federal hereby incorporates by reference the mandatory affirmative action language of
‘Subsection 3.4(a), NJAC. 1727-34 and NJAC. 17-27-53 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, provisions, and conditions of Subsection 3 4 and of Section 5:3.
12, Political Contribution Disclosure. Federal does hereby attest that Federal, and its subsidiaries, assigns or principals
controling in excess of 10% of the company has neither made a contribution, thatis reportable pursuant to the Election Law
Enforcement Commission pursuant to NJJS.A. 19:44A-8 or 18:44A-16 in the one (1) year period preceding the award of the
Contract that would, pursuant to P.L. 2004, ¢.19, affect its eligibility to perform this contract, nor will t make a reportable
contribution during the term of the contract to any politcal party committee in the municipality/county when the contract is
awarded, oF 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. Confidentiality. itis 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,
14, Cooperation Client shall cooperate with Federal in the performance by Federal ofits Proposed Services, including, without
limitation, providing Federal with reasonable facilties and timely access to data, information and personnel, and agents and
fepresentatives of Client, Client shall be responsible for the performance ofits employees and agents and for the accuracy
and completeness of all data and information provided to Federal for purposes ofthe performance by Federal of ts Proposed
Services
18. 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
fn 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 responsibilty
for the accuracy or completeness of the Information; and (c) Federal will not make an appraisal of, conduct an audit of, or
otherwise provide any opinion, report, or other form of assurance with respect to such Information. In addition to providing
fequited 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 leter, in form and substance satisfactory to Federal which, among other things,
Confirming the Clent’s responsibilty for the historical financial statements and for the underiying assumptions used in
Connection with any pro forma cash flows, the appropriateness of the prospective financial statements that the Client has
prepared, and thet active decision-making participation in the Service and the use of the Service.
16. The information on the financial, legal, and physical condition of the subject property or assets provided by the Client, the
subject owner, or others, directly to Federal or to the public through various public disclosure methods is assumed to be
reliable.
17. Other materials and information obtained from various professionally appropriate public and private sources are assumed to
be reliable
18. The information contained within the Proposed Services was obtained from sources deemed to be reliable. Reasonable
efforts, given the purpose, use, scope of the Proposed Services, 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 reliabilty.
19. tf substantive issues are later discovered in data relied upon, then the reported opinions in the Proposed Services may need
to be revised accordingly.
Property Specific Assumptions, Disclaimers and Limiting Conditions
FEDERAL APPRAISAL ite
2

Paige S. Walton, CCMA Il, Assessor, Town of Waterford
RE: Proposal/Engagement to Provide Appraisal and Consulting Services regarding
Millstone Nuclear Power Plant
20. Federal does not provide legal, accounting, audit, engineering, architectural, or environmental sciences services. Federal
assumes no responsibilty for matters of a legal nature, matters of tile, matters of audit, matters of engineering, 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.
21, It is assumed that the tile to the studied interest is marketable, It is assumed thal there are no deed restrictions or other
limitation on the title that would make the Subject substantially more or less valuable, other than those that are specifically
Noted in the Proposed Services. It's assumed that the legal descriptions as obtained from public records or as furnished are
‘eliable. Federal has made no land survey and has completed no tite search or report of the Subject. It is assumed that
there are no issues conceming subs