ADMINISTRATIVE COMMITTEE
6.	CONSIDER RECOMMENDING AUTHORIZATION OF EXPENDITURE OF FUNDS NOT TO EXCEED $50,000 FOR ADDITIONAL REAL ESTATE APPRAISAL SERVICES BY CHRIS CARNEGHI MAI RELATED TO THE ACQUISITION OF THE MONTEREY WATER SYSTEM (MEASURE J)
Meeting Date:		September 13, 2021	Budgeted:	No
From:		David J. Stoldt,	Program/	Services & Supplies
		General Manager	Line Item No.:	Professional Fees
Prepared By:		David J. Stoldt	Cost Estimate:	$50,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on September 13, 2021 and recommended _______________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: Chris Carneghi MAI has been the District’s real estate appraiser working on the acquisition of the California American Water Company (Cal-Am) Monterey Water System since June 2020. Mr. Carneghi evaluated all of the identified Cal-Am real estate assets within the proposed acquisition and his formal appraisal work was ready to go in October 2020. Unfortunately, delays in the LAFCO process have resulted the appraisal work becoming “stale” and in need of updating. Additional analysis will be required to update the work and incorporate into Raftelis’ overall appraisal.

The update will likely take two to three months. The fee would be billed on an hourly basis the same as last time. It is difficult to know the time that would be involved since some reinspection will be necessary along with any new comparables that can be found. There is just under $44,000 left in Mr. Carneghi’s budget. The addition of $50,000 to the budget should be more than sufficient to meet all the real estate appraisal needs before the start of trial preparation/testimony. We would continue under the same authorization letter signed by David Laredo in June 2020.

RECOMMENDATION: The Administrative Committee should recommend that the Board authorize expenditure of funds not to exceed $50,000 for additional real estate appraisal services by Chris Carneghi MAI related to the acquisition of the Monterey Water System (Measure J).

IMPACT TO DISTRICT RESOURCES: Such Measure J related expenses have not been budgeted and will come from District reserves.

EXHIBITS

None

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