ADMINISTRATIVE COMMITTEE
4.	RECOMMEND THE BOARD CONSIDER AN INCREASE IN THE BUDGET FOR APPRAISAL SERVICES FOR MEASURE J PHASE 2 ACTIVITIES
Meeting Date:		June 9, 2020	Budgeted:	N/A
From:		David J. Stoldt	Program/
		General Manager	Line Item No.:	N/A
Prepared By:		David J. Stoldt	Cost Estimate:	$126,000 w/contingency
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 9 and recommended _____________________.
CEQA Compliance: Not a project under CEQA.

SUMMARY: At the November 18, 2019 Board meeting additional areas of consulting work were identified that would help best position the Board to vote on a Resolution of Public Necessity sometime in 2020. Such activities, which are presently ongoing include: Formal Appraisal and Rate Study, Findings and Other Legal Work, Operations Plan, and CEQA Work.

At its December 16, 2019 meeting the Board approved an overall budget for the scope of services totaling $1,241,000. At this time, the District has received a proposal for MAI real estate appraisal services to work jointly with Raftelis, the consultants performing the formal valuation. However, the overall approved budget would not be exceeded (see BACKGROUND, below.)

The appraiser, Chris Carneghi MAI, has estimated the budget to be up to $120,000 because of the large number of properties and the overall complexity. Mr. Carneghi has done this type of highly specialized work before and has experience providing expert testimony in eminent domain legal cases. His proposal is attached as Exhibit 4-A with sensitive information related to real property negotiation removed.

RECOMMENDATION: Administrative Committee should consider a recommendation to the Board to increase the budget for appraisal services for Measure J phase 2 activities to $120,000 and set aside an additional 5% contingency.

BACKGROUND: The overall budget approved by the Board in December 2019 is shown in the table at the top of the next page. The CEQA consultant fee proposal came in far less than budgeted, therefore this proposed change to the MAI Appraiser allows the overall budget to remain $246,650 less than the overall approved budget.

Budget Summary

Item	Consultant	Approved Budget	Current Budget
Appraisal & Rate Study	Raftelis MAI Appraiser	$200,000 $35,000	$200,000 $120,000
Findings & Other Legal	Rutan & Tucker	$225,000	$225,000
Operations Plan	Close & Associates Jacobs Engineering	$145,000 $87,000	$145,000 $87,000
CEQA Work	Rincon Consultants	$450,000	$130,000
Other		$40,000	$40,000
Contingency (5%)		$59,000	$47,350
TOTAL		$1,241,000	$994,350

EXHIBIT

4-A Proposal of Chris Carneghi MAI

U:\staff\Board_Committees\Admin\2020\20200609\04\Item-4.docx