CITY OF UMATILLA AGENDA COVER SHEET DATE: November 15, 2013 SUBJECT: Merrill Property ISSUE: Discussion on Purchase MEETING DATE: November 19, 2013 BACKGROUND SUMMARY: Dorothy Merrill owns certain real property on the eastern edge of Lake Tutuola and contiguous to the city’s south ball field and Larkin Park. Dorothy’s son, Rex approached staff wanting to know if the city had any interest in purchasing the land to increase the size of the parks and offered to sell all for $50,000. Shortly after meeting with Mr. Merrill, this topic was discussed with the council and staff was directed to have the property appraised. Following are two appraisal reports from John Roberts Appraisal Service in Eustis for two individual parcels owned by Mrs. Merrill. One parcel appraised at $30,000 and the other at $32,000. Years ago a portion of this property was home to Merrill’s Automotive Garage. Currently, the property is vacant, but it is unknown if environmental hazards exist and if they do exist, to what extent. If the city takes ownership of the land and there are environmental hazards present, the city assumes full liability for the condition(s) and may be forced by DEP to mitigate/remediate. This can be very expensive and the land may not be usable for any purpose for quite a while. On the other hand, there may be no environmental hazards. At a minimum, if there is interest by the council in obtaining the property staff strongly suggests that an environmental assessment level 1 and 2 be ordered before consummating a purchase. Staff contacted Andreyev Engineering, an environmental engineering firm here in Lake County in an attempt to determine the cost of these assessments. Andreyev had no problem giving a definitive charge of $1,650 for a level 1 assessment because it is a standard assessment. However, the firm could only estimate a level 2 assessment cost of approximately $5,000. The second assessment’s cost is directly related to what is discovered during the phase 1 assessment. Therefore, to have assessments done for both parcels would cost approximately $6,650. It is believed that both assessments are needed in order to make an informed decision as to how prudent it would be to purchase the property. Andreyev’s proposal is also included in this part of the packet. Staff has not discussed the believed need for the environmental assessments or the result 1 U:\2013 AG and MIN\11 NOV\11.19.13 CC\MERRILL PROPERTY\11 19 13 Merrill Property Purchase Discussion.doc appraisal with the Merrill’s and needs direction on how to proceed. Mr. Merrill did mention that the family is aware that Larkin Park was deeded to the city with a reverter clause stating that if the park ceased to be used for a BMX track it would be deeded back to the family. There has not been a BMX track on the property for many years. Mr. Merrill was asked if the family wanted the property back and he indicated in the negative. As a point of discussion, council could direct staff to negotiate the selling price of the property to be $50,000 inclusive of the assessments cost, but directly dependent on the assessments being clean. In other words, the property and assessments would not cost more than $50,000 total; however, if the assessment results lead the council to decline purchase, the city would be out approximately $6,650. Another way would be to give staff the authority to negotiate for the purchase of the property up to assessed value STAFF RECOMMENDATIONS: Discussion on how best to proceed. FISCAL IMPACTS: Any expenditure toward procurement of this property could be a cost of the General Fund or the Infrastructure Surtax [Penny Sales Tax] Fund and would have to be appropriated from reserves. A decision on funding should likely be made after environmental assessments are reported if there is a desire by the council to make the purchase. ______________________________________________________________________________ COUNCIL ACTION: Reviewed by City Attorney □Yes □No √N/A Reviewed by City Engineer □Yes □No √N/A 2 U:\2013 AG and MIN\11 NOV\11.19.13 CC\MERRILL PROPERTY\11 19 13 Merrill Property Purchase Discussion.doc John Roberts Appraisal Service INVOICE FROM: INVOICE NUMBER John Roberts Appraisal Service 120 N. Bay Street Eustis, FL 32726 44260L DATE 09/25/2013 Telephone Number: 352-357-8100 Fax Number: 352-589-4733 REFERENCE TO: Glenn Irby City of Umatilla P.O. Box 2286 Umatilla, FL 32784 Internal Order #: 44260L Lender Case #: City of Umatilla Client File #: Main File # on form: 44260L Other File # on form: City of Umatilla Telephone Number: (352) 669-0120 Fax Number: Federal Tax ID: Alternate Number: E-Mail: [email protected] Employer ID: Our Federal Tax ID Number is Registered As: John Roberts Realty and Appraisal Services, Inc. Tax ID #20-0069051 (PLEASE REMIT BALANCE DUE UPON RECEIPT) DESCRIPTION Lender: Purchaser/Borrower: Property Address: City: County: Legal Description: City of Umatilla Client: City of Umatilla N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) Umatilla Lake State: FL Zip: 32784 Umatilla, Lake Tutuola Park Lots 1, 2, 3, 4, W 120 Ft of Lots 5, 6, 7, 8, 9, Lots 11-16 Incl PB 6 PG 59 FEES AMOUNT FEE APPRAISAL 250.00 SUBTOTAL 250.00 PAYMENTS Check #: Check #: Check #: AMOUNT Date: Date: Date: Description: Description: Description: SUBTOTAL TOTAL DUE Form NIV3 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE $ 250.00 Page #1 APPRAISAL OF REAL PROPERTY LOCATED AT: Thomas Street (Parcel #13-18-26-2100-000-00100) Umatilla, Lake Tutuola Park Lots 1, 2, 3, 4, W 120 Ft of Lots 5, 6, 7, 8, 9, Lots 11-16 Incl PB 6 PG 59 Umatilla, FL 32784 FOR: City of Umatilla P.O. Box 2286 Umatilla, FL 32784 AS OF: 09/25/2013 BY: Leslie J. Blankenship Cert Res RD5339 John Roberts Appraisal Service 120 North Bay Street, Eustis, FL 32726 (352) 357-8100 / (352) 589-4733 Fax 44260L John Roberts Appraisal Service Form GA2 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #2 John Roberts Appraisal Service LAND APPRAISAL REPORT City of Umatilla NEIGHBORHOOD SUBJECT Summary Appraisal Report File No. 44260L Borrower N/A (City of Umatilla) Census Tract 301.05 Map Reference 13-18-26 Property Address Thomas Street (Parcel #13-18-26-2100-000-00100) City Umatilla County Lake State FL Zip Code 32784 Legal Description Umatilla, Lake Tutuola Park Lots 1, 2, 3, 4, W 120 Ft of Lots 5, 6, 7, 8, 9, Lots 11-16 Incl PB 6 PG 59 Sale Price $ N/A Date of Sale N/A Loan Term yrs. Property Rights Appraised Fee Leasehold De Minimis PUD Actual Real Estate Taxes $ 362.07 (yr) Loan charges to be paid by seller $ N/A Other sales concessions N/A Lender/Client City of Umatilla Address P.O. Box 2286, Umatilla, FL 32784 Occupant Vacant Land Appraiser Leslie J. Blankenship Instructions to Appraiser Market Value Location Urban Suburban Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos. 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation Present % Apts. % Condo 10 % Commercial Recreational Facilities 60 % One-Unit 5 % 2-4 Unit Land Use % Industrial 25 % Vacant % Adequacy of Utilities Change in Present Not Likely Likely (*) Taking Place (*) Property Compatibility Land Use (*) From To Protection from Detrimental Conditions Predominant Occupancy Owner Tenant Police and Fire Protection 10 % Vacant One-Unit Price Range $ 20,000 to $ 300,000 Predominant Value $ 100,000 General Appearance of Properties One-Unit Age Range yrs. to 50+ yrs. Predominant Age yrs. Appeal to Market 2 30 Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise) Located 2 miles south of Downtown SITE Umatilla, schools, and shopping. Located in City Limits.. Area of conventional single family homes, park, community center and commercial along Hwy 19. Dimensions See Addendum = Corner Lot 2.6 Acres Zoning Classification R-10 and R-6**See Addendum Present Improvements Do Do Not Conform to Zoning Regulations Highest and Best Use Present Use Other (specify) Developed Topo Public Other (Describe) Level OFF SITE IMPROVEMENTS Elec. Street Access Public Private Size Typical for the Area Gas Shape Surface Asphalt Irregular Water Maintenance Public Private View Well* Vacant Land/Res Storm Sewer Curb/Gutter San. Sewer Drainage Appears Adequate Septic* Sidewalk Street Lights Is the property located in a FEMA Special Flood Hazard Area? Underground Elect. & Tel. Yes No Comments (favorable or unfavorable including any apparent adverse easements, encroachments, or other adverse conditions) Flood Map #12069C0220E Dated:12/18/2012. Zone:X *Well and septic would be required if developed. **See Addendum for additonal comments. The undersigned has recited the following recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (–) adjustment is made, thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. ITEM SUBJECT PROPERTY COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 Address Thomas Street CR 44 CR 44A 45020 Thomas Boat Landing MARKET DATA ANALYSIS Umatilla, FL 32784 Grand Island, FL 32735 Eustis, FL 32736 Umatilla, FL 32784 Proximity to Subject 4.49 miles SW 4.43 miles SE 3.31 miles NW Sales Price $ $ $ $ N/A 37,800 19,285 50,000 Price $/Sq. Ft. $ $ $ $ Data Source(s) Inspection ORB 4322/2267, GIS, Clerk ORB 4227/1676, GIS, Clerk ORB 4248/87, MLS, GIS, Clerk ITEM DESCRIPTION DESCRIPTION +(– )$ Adjust. DESCRIPTION +(– )$ Adjust. DESCRIPTION +(– )$ Adjust. Date of Sale/Time Adj. N/A 04/22/2013 10/12/2012 11/27/2012 Location Avg/Suburban Avg/Suburban Avg/Suburban Avg/Suburban Site/View 2.6 Acres 2.1 Ac/Res/Hwy 0 1.28 Acres +15,000 4.75 Acres -20,000 Sales History Date of Prior Sale None Noted 03/2008 09/03/2002 06/30/2011 Price of Prior Sale $60,000 $10 $100,000 Data Source ORB 3605/1077 ORB 2170/2351 ORB 4078/287 Sales or Financing N/A Conv$102,200 Cash Sale Conv$42,000 Concessions N/A Owner Owner + – $ + – $ + – $ Net Adj. (Total) 15,000 -20,000 Indicated Value Net % Net 77.8 % Net 40.0 % of Subject Gross % $ 37,800 Gross 77.8 % $ 34,285 Gross 40.0 % $ 30,000 36 month sales history for the subject has been verified above. Comments on Market Data The Sales Comparison Approach is considered the only appropriate approach to value of the subject vacant land parcel, and as it best reflects the actions of buyers and sellers in the open marketplace. Reconciled value is below. RECONCILIATION Comments and Conditions of Appraisal Sales bracket acreage. Sales 1 and 5 sold this year, all other sales sold last year. None of the sales are over a year old. Sales utilized were the most similar sales available with similar zoning. All sales considered. ** See addendum for additional comments. I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE SUBJECT PROPERTY AS OF TO BE $ 09/25/2013 32,000 Appraiser Leslie J. Blankenship Supervisory Appraiser (if applicable) Date of Signature and Report September 27, 2013 Date of Signature Final Reconciliation Title Title State Certification # Cert Res RD5339 ST FL State Certification # Or State License # ST Or State License # Expiration Date of State Certification or License 11/30/2014 Expiration Date of State Certification or License Date of Inspection (if applicable) Did Did Not Inspect Property Date of Inspection 09/25/2013 Form LAND — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE ST ST 08/11 Page #3 ADDITIONAL COMPARABLE SALES ITEM SUBJECT PROPERTY Address Thomas Street Umatilla, FL 32784 COMPARABLE NO. 4 22932 Grow Road Eustis, FL 32736 7.69 miles E COMPARABLE NO. 5 City of Umatilla File No. 44260L COMPARABLE NO. 6 Shady Oak Lane Umatilla, FL 32784 3.90 miles SE $ $ DESCRIPTION + Net Gross +(– )$ Adjust. – $ % % $ MARKET DATA ANALYSIS Proximity to Subject Sales Price $ $ $ N/A 50,000 55,000 Price $/Sq. Ft. $ $ $ Data Source(s) Inspection ORB 4300/2138, GIS, Clerk ORB 4263/1851, GIS, Clerk ITEM DESCRIPTION DESCRIPTION +(– )$ Adjust. DESCRIPTION +(– )$ Adjust. Date of Sale/Time Adj. N/A 03/26/2013 12/25/2012 Location Avg/Suburban Avg/Suburban Avg/Suburban Site/View 2.6 Acres 5 Acres -19,000 5 Acres -25,000 Sales History Date of Prior Sale None Noted 10/06/2009 03/18/2004 Price of Prior Sale $100 $97,500 Data Source ORB 3826/1980 ORB 2530/2384 Sales or Financing N/A Cash Sale Balloon$52,000 Concessions N/A Owner + – $ + – $ Net Adj. (Total) -19,000 -25,000 Indicated Value Net 38.0 % Net 45.5 % of Subject Gross 38.0 % $ 31,000 Gross 45.5 % $ 30,000 Comments on Market Data 08/11 Form LAND.(AC) — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #4 Addendum Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) Umatilla County Lake City of Umatilla File No. 44260L State FL Zip Code 32784 PURPOSE, FUNCTION AND INTENDED USE OF THE APPRAISAL: The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report by John Roberts Appraisal Service for the referenced client (line 9, "subject" section of the report). The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser. 2010 USPAP ETHICS RULE - CONDUCT SECTION: Our research indicates that I/we (John Roberts Appraisal Service) have not performed any services regarding the subject property within the three year period immediately preceding acceptance of this appraisal assignment as an appraiser or in any other capacity. LOT DIMENSIONS: Lots 1-4 169.24 x 184.38 x 146.20 x 278.8 = 36,526 sf and Lots 5-9 140 x 263.5 + 36,890 sf and Lots 11-16 140 x 313.50 ZONING: Lots 1-4 are in the City of Umatilla and zoned R-10 Lots 5-9 and 11-16 are in the County and zoned R-6. Per County: the beginning of the parcel is located in the City of Umatilla and taxed by the City, the City of Umatilla zoning and building is in control of the land use requirements. **Site Information:*Appraiser was informed that there might be environmental hazards on site due to an old repair garage being on site in the past, the garage is no longer on site. However, an environmental study is reccommended. This value is based on the hypothetical condition the site is free from all hazards, if it is found that there are any environmental hazards on the property the value could be significantly decreased. Form SUP — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #5 Subject Photo Page Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla State FL Zip Code 32784 Subject Site Thomas Street N/A Avg/Suburban 2.6 Acres Subject Site Street Scene Form PIC3x5.SR — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #6 Location Map Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla State FL Form MAP.LOC — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 Page #7 Plat Map Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla State FL Form MAP.PLAT — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 Page #8 Flood Map Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla State FL Form MAP.LOC — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 Page #9 USPAP Compliance Addendum Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla File No. 44260L State FL Zip Code 32784 SUMMARY APPRAISAL REPORT: i. State the identity of the client and any intended users, by name or type. ii. State the intended use of the appraisal. iii. Summarize information sufficient to identify the real estate or personal property involved in the appraisal, including the physical and economic property iv. characteristics relevant to the assignment. State the property interest appraised. v. State the purpose of the appraisal, including the type and definition of value and its source. vi. State the effective date of the appraisal and the date of the report. vii. Summarize sufficient information to disclose to the client and any intended users of the appraisal the scope of work used to develop the appraisal. viii. State all assumptions, hypothetical conditions, and limiting conditions that affected the analyses, opinions, and conclusions. ix. Summarize the information analyzed, the appraisal procedures followed and the reasoning that supports the analyses, opinions and conclusions. x. State the use of the property, existing as of the date of value and the use of the real estate or personal property reflected in the appraisal; and, when the purpose of the assignment is market value, summarize the support and rationale for the appraiser's opinion of the highest and best use of the real estate or personal property. xi. Include a signed certification in accordance with Standards Rule 2-3 or 8-3. PURPOSE, FUNCTION AND INTENDED USE OF THE APPRAISAL: ( X ) The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report, on behalf of the appraisal company facilitating the assignment for the referenced client as the intended user of the report. The only function of the appraisal is to assist the client mentioned in this report in evaluating the subject property for lending purposes. The use of this appraisal by anyone other than the stated intended user, or for any other use than the stated intended use, is prohibited. Additional intended users: None. ( ) The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report, on behalf of the appraisal company facilitating the assignment for the referenced client as the intended user of the report. The only function of the appraisal is to assist the client mentioned in this report in evaluating the subject property for_____________________. The use of this appraisal by anyone other than the stated intended user, or for any other use than the stated intended use is prohibited. THE INTEREST VALUED IS: ( X ) Fee Simple, ( ) Leasehold, ( ) Leased Fee, ( )___________. SCOPE (EXTENT) OF REPORT: The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject property and neighborhood, and selection of comparable sales, listings, and/or rentals within the subject market area. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting infirmation was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. John Roberts Appraisal Service utilizes Micro Decisions software, the Mid Florida Regional MLS system, GIS mapping, and many county, state and federal online services in the preparation of our appraisals. In addition, we have our own database of plats, tax maps, zoning maps, census maps, county and city codes, and aerial photographs to assist in data collection. In addition, our appraisers have full access to thousands of previous appraisals completed by our office. When deemed appropriate by the appraiser, additional approaches to value not on the standard form, may be placed in the appraisal file. EXTRAORDINARY ASSUMPTIONS, HYPOTHETICAL CONDITIONS: None/Unless the development of a value opinion for a subject property with proposed improvements as of a current date involves the use of the hypothetical condition that the described improvements have been completed as of the date of value, when, in fact, they have not. In the case of an exterior inspection (drive by), that the interior condition is consistent with the exterior condition. HIGHEST AND BEST USE: In determining the highest and best use for the subject property, the following was considered: The most reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest land value. It is recognized in most cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in existing use. APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Name: Leslie J. Blankenship Date Signed: September 27, 2013 State Certification #: Cert Res RD5339 or State License #: State: FL Expiration Date of Certification or License: 11/30/2014 Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Did Did Not Inspect Property John Roberts Appraisal Service Form ID4 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #10 Appraiser's Certification Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla File No. 44260L State FL Zip Code 32784 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items or significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report and true and correct. 3. I stated in the appraisal report only my own personal, unbiased, professional analyses, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The report analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. 4. I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present of contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice in place, as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of the market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have made a personal inspection of the property that is the subject of this report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. On drive by appraisal requests, exterior inspections are performed from the public street unless otherwise noted in the appraisal report. Information is obtained from county tax records, MLS when available, or prior inspections. Any additions, amenities or negative/positive conditions not available from these sources will not be reflected in the appraisal report. 9. No one provided significant professional assistance to the person signing this report. 10. If I relied on significant professional assistance from any individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report, therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, John Roberts has completed the requirements of the continuing education program of the Appraisal Institute. APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Name: Leslie J. Blankenship Date Signed: September 27, 2013 State Certification #: Cert Res RD5339 or State License #: State: FL Expiration Date of Certification or License: 11/30/2014 Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Did Did Not Inspect Property John Roberts Appraisal Service Form ID4 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #11 Qualifications of Leslie Blankenship Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla File No. 44260L State FL Zip Code 32784 QUALIFICATIONS OF LESLIE J. BLANKENSHIP Business Address: John Roberts Appraisal Service 120 North Bay Street Eustis, FL 32726 (352) 357-8100 Phone (352) 589-4733 Fax Education: Cooke Real Estate School-Appraisal Laws & Rules, 11/2012 Cooke Real Estate School-Foreclosure Basics for Appraisers, 11/2012 Cooke Real Estate School-National USPAP 2012-2013, 11/2012 Cooke Real Estate School-Challenging Assignments for Residential Appr, 11/2012 Cooke Real Estate School – Appraisal of 2-4 Family & Multi Family Properties, 11/2012 Bert Rodgers Schools – Manufactured and Modular Housing, 11/2010 Bert Rodgers Schools – Neighborhood Analysis, 11/2010 Bert Rodgers Schools – Florida Real Estate Appraisal License Law, 11/2010 Bert Rodgers Schools – 4 Hour Sales Comparison Approach, 11/2010 Bert Rodgers Schools – Roles and Rules of Supervisor and Trainee, 11/2010 Bert Rodgers Schools – FHA and VA Appraisals, 11/2010 Bert Rodgers Schools – Fannie Mae Forms, 11/2010 Bert Rodgers Schools – 2010-2011 Equivalent National USPAP Course, 11/2010 McKissock Appraisal School-FL 2008-2009 National USPAP Update, 11/2008 McKissock Appraisal School-FL Appraising FHA Today, 11/2008 McKissock Appraisal School-FL The Dirty Dozen, 11/2008 McKissock Appraisal School-FL Supervisor/Trainee Roles & Relationships, 11/2008 McKissock Appraisal School-FL Appraisal Laws & Regulations, 11/2008 McKissock Appraisal School-FLAppraising Factory Built Housing 11/2008 McKissock Appraisal School-FL Appraising the Oddball, 11/2006 McKissock Appraisal School- FL. Appraisal Laws and Regulations, 11/2006 McKissock Appraisal School-FL. Dirty Dozen, 11/2006 McKissock Appraisal School-FL. Appraising FHA Today, 11/2006 McKissock Appraisal School-FL. Disclosures and Disclaimers, 11/2006 McKissock Appraisal School-FL. National USPAP Update Equiv.2006, 11/2006 Bert Rogers Real Estate School - 3 Hour Law Update, 11/2004 The Appraisal Foundation – 15 Hour USPAP Course, 09/2004 Steve Williamson’s Real Estate Education Specialists – Residential Course II, 09/2004 FREC – Appraisal Board Course 1, 10/2001 IFREC – 45 Hour Real Estate Post License Course, 5/1992 Continuing Education for Real Estate Salesperson every 2 yrs. IFREC – Pre-Licensing for Real Estate Salesperson, 10/1991 Purdue University Calumet, Indiana – BS Degree Marketing & Finance Licenses: State Certified Residential Real Estate Appraiser – License #5339 Licensed Real Estate Salesperson – State of Florida – License #597844 Approved FHA Appraiser (United States Department of Housing & Urban Development) Experience: Residential Real Estate Appraiser with John Roberts Appraisal Service since October 2002. Existing single family, new single family, proposed single family, existing condominium, and PUD’s, vacant land and final inspections. Real Estate Salesperson with John Roberts Realty since June 2002, active in the listing and sale of residential property and vacant land. Real Estate Salesperson with Coldwell Banker (1998-2000). Property Manager with Holiday Homes and World of Homes, (1990-1996). Association Memberships: Realtor / Associate – Lake County Association of Realtors Area of Assignments: Lake County; Partial Orange, Marion and Sumter Counties (along the Lake County line). Library: First American Real Estate Solutions monthly sales data service. MicroBase on-line sales and tax information. MLS sales and listing on-line service. On-line sites including County Clerks of Court, and Property Appraiser’s Offices. Complete subdivision plats. Aerial photographs, tax records and tax maps. Private files of all appraisals to date from 1978. Flood maps and census maps. Subdivision restrictions, soil type surveys and the Marshall and Swift construction costing service. Fully computerized appraisal service, EDI capable. Comparable sales database utilizing data collection from eleven staff appraisers. Form TADD — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #12 Leslie Blankenship License Borrower/Client Property Address City Lender N/A (City of Umatilla) Thomas Street (Parcel #13-18-26-2100-000-00100) County Lake Umatilla City of Umatilla State FL Form MAP.Flood — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 John Roberts Appraisal Service INVOICE FROM: INVOICE NUMBER John Roberts Appraisal Service 120 N. Bay Street Eustis, FL 32726 44261L DATE 09/25/2013 Telephone Number: 352-357-8100 Fax Number: 352-589-4733 REFERENCE TO: Glenn Irby City of Umatilla P.O. Box 2286 Umatilla, FL 32784 Internal Order #: 44261L Lender Case #: City Of Umatilla Client File #: Main File # on form: 44261L Other File # on form: City Of Umatilla Telephone Number: (352) 669-0120 Fax Number: Federal Tax ID: Alternate Number: E-Mail: [email protected] Employer ID: Our Federal Tax ID Number is Registered As: John Roberts Realty and Appraisal Services, Inc. Tax ID #20-0069051 (PLEASE REMIT BALANCE DUE UPON RECEIPT) DESCRIPTION Lender: Purchaser/Borrower: Property Address: City: County: Legal Description: City of Umatilla Client: City of Umatilla N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) Umatilla Lake State: FL See Addendum Zip: 32784 FEES AMOUNT FEE APPRAISAL 250.00 SUBTOTAL 250.00 PAYMENTS Check #: Check #: Check #: AMOUNT Date: Date: Date: Description: Description: Description: SUBTOTAL TOTAL DUE Form NIV3 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE $ 250.00 Page #1 APPRAISAL OF REAL PROPERTY LOCATED AT: 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) See Addendum Umatilla, FL 32784 FOR: City of Umatilla P.O. Box 2286 Umatilla, FL 32784 AS OF: 09/23/2013 BY: Leslie J. Blankenship Cert Res RD5339 John Roberts Appraisal Service 120 North Bay Street, Eustis, FL 32726 (352) 357-8100 / (352) 589-4733 Fax 44261L John Roberts Appraisal Service Form GA2 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #2 John Roberts Appraisal Service City Of Umatilla LAND APPRAISAL REPORT NEIGHBORHOOD SUBJECT Summary Appraisal Report File No. 44261L Borrower N/A (City of Umatilla) Census Tract 301.05 Map Reference 24-18-26 Property Address 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) City Umatilla County Lake State FL Zip Code 32784 Legal Description See Addendum Sale Price $ N/A Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised Fee Leasehold De Minimis PUD Actual Real Estate Taxes $ 249.32 (yr) Loan charges to be paid by seller $ N/A Other sales concessions N/A Lender/Client City of Umatilla Address P.O. Box 2286, Umatilla, FL 32784 Occupant Vacant Land Appraiser Leslie J. Blankenship Instructions to Appraiser Market Value Location Urban Suburban Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos. 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation Present % Apts. % Condo 10 % Commercial Recreational Facilities 60 % One-Unit 5 % 2-4 Unit Land Use % Industrial 25 % Vacant % Adequacy of Utilities Change in Present Not Likely Likely (*) Taking Place (*) Property Compatibility Land Use (*) From To Protection from Detrimental Conditions Predominant Occupancy Owner Tenant Police and Fire Protection 10 % Vacant One-Unit Price Range $ 20,000 to $ 300,000 Predominant Value $ 100,000 General Appearance of Properties One-Unit Age Range yrs. to 50+ yrs. Predominant Age yrs. Appeal to Market 2 30 Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise) Located 2 miles south of Downtown SITE Umatilla, schools, and shopping. Not located in City Limits. Service by County 911. Area of conventional single family homes, park, community center and commercial along Hwy 19. Dimensions See addendum = Corner Lot 1.87 Acres Zoning Classification A, Agriculture Present Improvements Do Do Not Conform to Zoning Regulations Highest and Best Use Present Use Other (specify) Developed Topo Public Other (Describe) Level OFF SITE IMPROVEMENTS Elec. Street Access Public Private Size Typical for the Area Gas Shape Surface Asphalt Irregular Water Maintenance Public Private View Well* Vacant Land Storm Sewer Curb/Gutter San. Sewer Drainage Appears Adequate Septic* Sidewalk Street Lights Is the property located in a FEMA Special Flood Hazard Area? Underground Elect. & Tel. Yes No Comments (favorable or unfavorable including any apparent adverse easements, encroachments, or other adverse conditions) Flood Map #12069C0220E Dated:12/18/2012. Zone:X *Well and septic would be required if developed. The undersigned has recited the following recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (–) adjustment is made, thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. ITEM SUBJECT PROPERTY COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 Address 38980 Carroll Street Britt Road County Road 44 County Road 44A MARKET DATA ANALYSIS Umatilla, FL 32784 Eustis, FL 32736 Grand Island, FL 32735 Eustis, FL 32736 Proximity to Subject 6.68 miles SE 4.31 miles SW 3.52 miles SE Sales Price $ $ $ $ N/A 34,000 37,800 19,285 Price $/Sq. Ft. $ $ $ $ Data Source(s) Inspection ORB 4330/931, GIS, Clerk ORB 4322/2267, GIS, Clerk ORB 4227/1676, GIS, Clerk ITEM DESCRIPTION DESCRIPTION +(– )$ Adjust. DESCRIPTION +(– )$ Adjust. DESCRIPTION +(– )$ Adjust. Date of Sale/Time Adj. N/A 05/23/2013 04/22/2013 10/12/2012 Location Avg/Suburban Avg+Suburban \ Avg/Suburban Avg/Suburban Site/View 1.87 Acres 1.19 Ac/ Res/ VL / 0 2.1 Ac/Res/Hwy -5,000 1.28 Acres +6,000 Sales History Date of Prior Sale None Noted None Noted 03/2008 09/03/2002 Price of Prior Sale $60,000 $10 Data Source ORB 3605/1077 ORB 2170/2351 Sales or Financing N/A Cash Sale Conv$102,200 Cash Sale Concessions N/A Owner + – $ + – $ + – $ Net Adj. (Total) -5,000 6,000 Indicated Value Net % Net 13.2 % Net 31.1 % of Subject Gross % $ 34,000 Gross 13.2 % $ 32,800 Gross 31.1 % $ 25,285 36 month sales history for the subject has been verified above. Comments on Market Data The Sales Comparison Approach is considered the only appropriate approach to value of the subject vacant land parcel, and as it best reflects the actions of buyers and sellers in the open marketplace. Reconciled value is below. RECONCILIATION Comments and Conditions of Appraisal Sales bracket acreage. Sale 3 and 4 were older sales. Sales 1 and 2 sold within the past 5 months. Sales utilized were the most similar sales available with similar zoning. All sales considered. Final Reconciliation I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE SUBJECT PROPERTY AS OF 09/23/2013 TO BE $ Appraiser Leslie J. Blankenship Supervisory Appraiser (if applicable) Date of Signature and Report September 27, 2013 Date of Signature Title Title State Certification # Cert Res RD5339 ST FL State Certification # Or State License # ST Or State License # Expiration Date of State Certification or License 11/30/2014 Expiration Date of State Certification or License Date of Inspection (if applicable) Did Did Not Inspect Property Date of Inspection 09/23/2013 Form LAND — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE 30,000 ST ST 08/11 Page #3 City Of Umatilla ADDITIONAL COMPARABLE SALES ITEM SUBJECT PROPERTY Address 38980 Carroll Street Umatilla, FL 32784 COMPARABLE NO. 5 $ ORB 4248/87, MLS, GIS, Clerk DESCRIPTION +(– )$ Adjust. 11/27/2012 Avg/Suburban 4.75 Acres DESCRIPTION $ $ +(– )$ Adjust. DESCRIPTION +(– )$ Adjust. -25,000 06/30/2011 $100,000 ORB 4078/287 Conv$42,000 Owner + – $ Net 50.0 % Gross 50.0 % $ $ $ -25,000 25,000 + Net Gross – $ % % $ + Net Gross – $ % % $ MARKET DATA ANALYSIS Proximity to Subject Sales Price $ Price $/Sq. Ft. $ Data Source(s) Inspection ITEM DESCRIPTION Date of Sale/Time Adj. N/A Location Avg/Suburban Site/View 1.87 Acres Sales History Date of Prior Sale None Noted Price of Prior Sale Data Source Sales or Financing N/A Concessions N/A Net Adj. (Total) Indicated Value of Subject Comments on Market Data COMPARABLE NO. 4 45020 Thomas Boat Landing Umatilla, FL 32784 3.31 miles NW $ N/A 50,000 File No. 44261L COMPARABLE NO. 6 08/11 Form LAND.(AC) — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #4 Addendum Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) Umatilla County Lake City of Umatilla File No. 44261L State FL Zip Code 32784 PURPOSE, FUNCTION AND INTENDED USE OF THE APPRAISAL: The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report by John Roberts Appraisal Service for the referenced client (line 9, "subject" section of the report). The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser. 2010 USPAP ETHICS RULE - CONDUCT SECTION: Our research indicates that I/we (John Roberts Appraisal Service) have not performed any services regarding the subject property within the three year period immediately preceding acceptance of this appraisal assignment as an appraiser or in any other capacity. LEGAL DESCRIPTION: N 321.1 FT OF E 1/2 OF NW 1/4 OF NW 1/4 OF NW 1/4, S 417.42 | FT OF N 738.52 FT OF W 121.29 FT OF E 1/2 OF W 1/2 OF NW 1/4| OF NW 1/4--LESS BEG AT NW COR OF E 1/2 OF NW 1/4 OF NW 1/4 | OF NW 1/4, RUN S 0-13-27 E 369.57 FT, S 89-46-33 E 69.39 FT,| N 05DEG 16MIN E 270.17 FT, N 27DEG 43MIN E 113.59 FT TO PT | ON N LINE OF SEC, N 89-42-10 W ALONG SAID N LINE 150.48 FT | TO POB | LOT DIMENSIONS: 121.3 x 299.9 x 69.39 x 270.17 x 113.56 x 182.93 x 197.24 x 208.72 x 347.91 Form SUP — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #5 Subject Photo Page Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla State FL Zip Code 32784 Subject Site 38980 Carroll Street N/A Avg/Suburban 1.87 Acres Subject Site Street Scene Form PIC3x5.SR — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #6 Location Map Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla State FL Form MAP.LOC — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 Page #7 Aerial Plat Map Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla State FL Form MAP.PLAT — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 Page #8 Flood Map Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla State FL Form MAP.LOC — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 Page #9 USPAP Compliance Addendum Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla File No. 44261L State FL Zip Code 32784 SUMMARY APPRAISAL REPORT: i. State the identity of the client and any intended users, by name or type. ii. State the intended use of the appraisal. iii. Summarize information sufficient to identify the real estate or personal property involved in the appraisal, including the physical and economic property iv. characteristics relevant to the assignment. State the property interest appraised. v. State the purpose of the appraisal, including the type and definition of value and its source. vi. State the effective date of the appraisal and the date of the report. vii. Summarize sufficient information to disclose to the client and any intended users of the appraisal the scope of work used to develop the appraisal. viii. State all assumptions, hypothetical conditions, and limiting conditions that affected the analyses, opinions, and conclusions. ix. Summarize the information analyzed, the appraisal procedures followed and the reasoning that supports the analyses, opinions and conclusions. x. State the use of the property, existing as of the date of value and the use of the real estate or personal property reflected in the appraisal; and, when the purpose of the assignment is market value, summarize the support and rationale for the appraiser's opinion of the highest and best use of the real estate or personal property. xi. Include a signed certification in accordance with Standards Rule 2-3 or 8-3. PURPOSE, FUNCTION AND INTENDED USE OF THE APPRAISAL: ( X ) The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report, on behalf of the appraisal company facilitating the assignment for the referenced client as the intended user of the report. The only function of the appraisal is to assist the client mentioned in this report in evaluating the subject property for lending purposes. The use of this appraisal by anyone other than the stated intended user, or for any other use than the stated intended use, is prohibited. Additional intended users: None. ( ) The purpose of the appraisal is to provide an opinion of market value of the subject property as defined in this report, on behalf of the appraisal company facilitating the assignment for the referenced client as the intended user of the report. The only function of the appraisal is to assist the client mentioned in this report in evaluating the subject property for_____________________. The use of this appraisal by anyone other than the stated intended user, or for any other use than the stated intended use is prohibited. THE INTEREST VALUED IS: ( X ) Fee Simple, ( ) Leasehold, ( ) Leased Fee, ( )___________. SCOPE (EXTENT) OF REPORT: The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject property and neighborhood, and selection of comparable sales, listings, and/or rentals within the subject market area. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting infirmation was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. John Roberts Appraisal Service utilizes Micro Decisions software, the Mid Florida Regional MLS system, GIS mapping, and many county, state and federal online services in the preparation of our appraisals. In addition, we have our own database of plats, tax maps, zoning maps, census maps, county and city codes, and aerial photographs to assist in data collection. In addition, our appraisers have full access to thousands of previous appraisals completed by our office. When deemed appropriate by the appraiser, additional approaches to value not on the standard form, may be placed in the appraisal file. EXTRAORDINARY ASSUMPTIONS, HYPOTHETICAL CONDITIONS: None/Unless the development of a value opinion for a subject property with proposed improvements as of a current date involves the use of the hypothetical condition that the described improvements have been completed as of the date of value, when, in fact, they have not. In the case of an exterior inspection (drive by), that the interior condition is consistent with the exterior condition. HIGHEST AND BEST USE: In determining the highest and best use for the subject property, the following was considered: The most reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest land value. It is recognized in most cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in existing use. APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Name: Leslie J. Blankenship Date Signed: September 27, 2013 State Certification #: Cert Res RD5339 or State License #: State: FL Expiration Date of Certification or License: 11/30/2014 Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Did Did Not Inspect Property John Roberts Appraisal Service Form ID4 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #10 Appraiser's Certification Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla File No. 44261L State FL Zip Code 32784 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items or significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report and true and correct. 3. I stated in the appraisal report only my own personal, unbiased, professional analyses, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The report analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. 4. I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present of contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice in place, as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of the market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have made a personal inspection of the property that is the subject of this report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. On drive by appraisal requests, exterior inspections are performed from the public street unless otherwise noted in the appraisal report. Information is obtained from county tax records, MLS when available, or prior inspections. Any additions, amenities or negative/positive conditions not available from these sources will not be reflected in the appraisal report. 9. No one provided significant professional assistance to the person signing this report. 10. If I relied on significant professional assistance from any individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report, therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, John Roberts has completed the requirements of the continuing education program of the Appraisal Institute. APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Name: Leslie J. Blankenship Date Signed: September 27, 2013 State Certification #: Cert Res RD5339 or State License #: State: FL Expiration Date of Certification or License: 11/30/2014 Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Did Did Not Inspect Property John Roberts Appraisal Service Form ID4 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #11 Qualifications of Leslie Blankenship Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla File No. 44261L State FL Zip Code 32784 QUALIFICATIONS OF LESLIE J. BLANKENSHIP Business Address: John Roberts Appraisal Service 120 North Bay Street Eustis, FL 32726 (352) 357-8100 Phone (352) 589-4733 Fax Education: Cooke Real Estate School-Appraisal Laws & Rules, 11/2012 Cooke Real Estate School-Foreclosure Basics for Appraisers, 11/2012 Cooke Real Estate School-National USPAP 2012-2013, 11/2012 Cooke Real Estate School-Challenging Assignments for Residential Appr, 11/2012 Cooke Real Estate School – Appraisal of 2-4 Family & Multi Family Properties, 11/2012 Bert Rodgers Schools – Manufactured and Modular Housing, 11/2010 Bert Rodgers Schools – Neighborhood Analysis, 11/2010 Bert Rodgers Schools – Florida Real Estate Appraisal License Law, 11/2010 Bert Rodgers Schools – 4 Hour Sales Comparison Approach, 11/2010 Bert Rodgers Schools – Roles and Rules of Supervisor and Trainee, 11/2010 Bert Rodgers Schools – FHA and VA Appraisals, 11/2010 Bert Rodgers Schools – Fannie Mae Forms, 11/2010 Bert Rodgers Schools – 2010-2011 Equivalent National USPAP Course, 11/2010 McKissock Appraisal School-FL 2008-2009 National USPAP Update, 11/2008 McKissock Appraisal School-FL Appraising FHA Today, 11/2008 McKissock Appraisal School-FL The Dirty Dozen, 11/2008 McKissock Appraisal School-FL Supervisor/Trainee Roles & Relationships, 11/2008 McKissock Appraisal School-FL Appraisal Laws & Regulations, 11/2008 McKissock Appraisal School-FLAppraising Factory Built Housing 11/2008 McKissock Appraisal School-FL Appraising the Oddball, 11/2006 McKissock Appraisal School- FL. Appraisal Laws and Regulations, 11/2006 McKissock Appraisal School-FL. Dirty Dozen, 11/2006 McKissock Appraisal School-FL. Appraising FHA Today, 11/2006 McKissock Appraisal School-FL. Disclosures and Disclaimers, 11/2006 McKissock Appraisal School-FL. National USPAP Update Equiv.2006, 11/2006 Bert Rogers Real Estate School - 3 Hour Law Update, 11/2004 The Appraisal Foundation – 15 Hour USPAP Course, 09/2004 Steve Williamson’s Real Estate Education Specialists – Residential Course II, 09/2004 FREC – Appraisal Board Course 1, 10/2001 IFREC – 45 Hour Real Estate Post License Course, 5/1992 Continuing Education for Real Estate Salesperson every 2 yrs. IFREC – Pre-Licensing for Real Estate Salesperson, 10/1991 Purdue University Calumet, Indiana – BS Degree Marketing & Finance Licenses: State Certified Residential Real Estate Appraiser – License #5339 Licensed Real Estate Salesperson – State of Florida – License #597844 Approved FHA Appraiser (United States Department of Housing & Urban Development) Experience: Residential Real Estate Appraiser with John Roberts Appraisal Service since October 2002. Existing single family, new single family, proposed single family, existing condominium, and PUD’s, vacant land and final inspections. Real Estate Salesperson with John Roberts Realty since June 2002, active in the listing and sale of residential property and vacant land. Real Estate Salesperson with Coldwell Banker (1998-2000). Property Manager with Holiday Homes and World of Homes, (1990-1996). Association Memberships: Realtor / Associate – Lake County Association of Realtors Area of Assignments: Lake County; Partial Orange, Marion and Sumter Counties (along the Lake County line). Library: First American Real Estate Solutions monthly sales data service. MicroBase on-line sales and tax information. MLS sales and listing on-line service. On-line sites including County Clerks of Court, and Property Appraiser’s Offices. Complete subdivision plats. Aerial photographs, tax records and tax maps. Private files of all appraisals to date from 1978. Flood maps and census maps. Subdivision restrictions, soil type surveys and the Marshall and Swift construction costing service. Fully computerized appraisal service, EDI capable. Comparable sales database utilizing data collection from eleven staff appraisers. Form TADD — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Page #12 Leslie Blankenship License Borrower/Client Property Address City Lender N/A (City of Umatilla) 38980 Carroll Street (Parcel #24-18-26-0002-000-03000) County Lake Umatilla City of Umatilla State FL Form MAP.Flood — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Zip Code 32784 CIVIL ENGINEERING SERVICES PROPOSAL/AGREEMENT FOR PHASE 1 ESA OF MERRILL PROPERTY ALTERNATE KEY #1105145 AND #1212090 UMATILLA, FLORIDA, LAKE COUNTY ENGINEERS: Duane K. Booth, P.E., Principal BOOTH, ERN, STRAUGHAN & HIOTT, INC. 350 North Sinclair Avenue Tavares, Florida 32778 (352) 343-8481 Phone (352) 343-8495 Fax [email protected] CLIENT: Glenn Irby, City Manager CITY OF UMATILLA 1 South Central Avenue Umatilla, Florida 32784 (352) 669-3152 Phone (352) 669-8313 Fax [email protected] PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 CIVIL ENGINEERING SERVICES PROPOSAL/AGREEMENT SCOPE OF WORK: Conduct a Phase 1 Environmental Site Assessment (ESA) on the subject property to determine if recognized environmental conditions are present on or near the site. SCOPE OF SERVICES: TASK 001 PHASE 1 ESA Andreyev Engineering, Inc., will conduct a Phase 1 ESA in accordance with ASTM E 1527-05 on the subject property. Please see full scope of services as presented in Subconsultant Agreement attached. Also note the General Conditions of the Subconsultant Agreement shall apply to the Master Agreement. FEE: $1,650.00 TASK 002 PHASE 2 ESA A Phase 2 scope of services cannot be determined until after a Phase 1 is completed, an anticipated fee for budget purposes is established at $5,000.00. If a Phase 2 is needed after the Phase 1 is completed, and the City desires to continue investigation of the property, a full scope and fee schedule will be developed for City approval. Page 2 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 HOURLY RATE SCHEDULE (2013) Professional Services shall be charged at the following rate schedule: ENGINEERING PROFESSIONAL ENGINEER (PRINCIPAL) $145.00/HOUR PROFESSIONAL ENGINEER $130.00/HOUR PROJECT ENGINEER $110.00/HOUR ENGINEER TECHNICIAN I $95.00/HOUR ENGINEER TECHNICIAN II $75.00/HOUR BUILDING INSPECTOR $65.00/HOUR CONSTRUCTION ENGINEER $85.00/HOUR EXPERT TESTIMONY PROFESSIONAL ENGINEER $300.00/HOUR SURVEYING PROFESSIONAL SURVEYOR (PRINCIPAL) $145.00/HOUR PROFESSIONAL SURVEYOR $85.00/HOUR 3 MAN FIELD CREW $100.00/HOUR 2 MAN FIELD CREW $85.00/HOUR CREW UTILIZING GLOBAL POSITIONING SYSTEM $110.00/HOUR SURVEY TECHNICIAN I $75.00/HOUR SURVEY TECHNICIAN II $50.00/HOUR SURVEY TECHNICIAN III $30.00/HOUR TITLE RESEARCHER $95.00/HOUR EXPERT TESTIMONY PROFESSIONAL SURVEYOR $300.00/HOUR Page 3 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 All printing for this project shall be billed out at the following rate schedule, plus sales tax: (Outside Copying Services will be billed at cost) Engineering Bond Copies Black & White 11 x 17.........................................$1.25 24 x 36.........................................$2.50 Color Copies 11 x 17.........................................$2.00 24 x 36.........................................$6.00 Black & White Copies 8 ½ x 11.........................................$0.10 8 ½ x 14.........................................$0.15 11 x 17..........................................$0.20 Color Copies 8 ½ x 11.........................................$1.20 8 ½ x 14.........................................$1.45 11 x 17..........................................$1.70 Other Printing Services 24 x 36 Vellum.....................................$9.00 24 x 36 Mylar......................................$12.00 24 x 36 Photo Paper, Color................ $36.00 24 x 36 Foam Board...........................$20.00 Other Services Fax...............................................$1.00/Copy Postage (Fed-Ex, Certified Mail, Etc)...@ cost Concrete Monuments.......................... $10.00 Rebar.................................................... $2.00 Mileage (T/M Projects Only).................. $0.59 Page 4 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 TERMS AND CONDITIONS I. GENERAL CONDITIONS A. AGREEMENT: These terms and conditions are attached to and made part of the proposal for services (the “Proposal for Services”) by which Booth, Ern, Straughan & Hiott, Inc. (“BESH”) has agreed to perform certain professional engineering and/or surveying services for and on behalf of City of Umatilla (“Client”). The Proposal for Services, these terms and conditions, the hourly rate schedule, and the executed authorization to proceed attached to these terms and conditions shall constitute a contract (hereinafter referred to as the “Agreement”) for the provision of services by BESH to and on behalf of Client. B. TERMINATION: This Agreement may be terminated by either party by furnishing written notice to the other party at least thirty (30) days prior to the effective date of termination. In the event that this Agreement is terminated by either party, Client shall pay BESH for all usable and acceptable or contractually required services performed and acceptable or required expenses incurred through the date of termination. C. DOCUMENTS: ENGINEERING DOCUMENTS All original drawings, computations, details, design calculations, and electronic media that result from engineering services performed by BESH pursuant to this Agreement are and at all times shall remain the property of BESH. Upon payment in full for services completed, Client, at Client’s expense, may obtain copies of any documents or reproducible copies of drawings. In doing so, Client agrees that no additions, deletions, changes or revisions shall be made to any of said documents without the express written approval of BESH. SURVEYING DOCUMENTS (Not Applicable) All original drawings, computations, details, design calculations, field notes, and electronic media that result from surveying services performed by BESH pursuant to this Agreement are and at all times shall remain the property of BESH. Signed and sealed surveys may be obtained for a period of time up to ninety (90) days after issuance of the survey, and certifications may be revised during that same period Page 5 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 of time for a fee of $50.00 for each revision. Upon payment in full for services completed, and within the same period of ninety (90) days, Client, at Client’s expense, may obtain copies of any documents or reproducible copies of drawings. In doing so, Client agrees that no additions, deletions, changes or revisions shall be made to any of said documents without the express written approval of BESH. After ninety (90) days and within one hundred eighty (180) days following issuance of the survey, BESH will revise certifications and will visually inspect the subject property for the purpose of reissuing a signed and sealed survey, charging its then-current hourly rates for performing said services and reissuing the survey. D. FEE RENEGOTIATION: The Proposal for Services describes the specific services to be performed and tasks to be undertaken by BESH for and on behalf of Client, and states the fee (the contract price) for each service and task. Except as otherwise provided in this Agreement, the contract prices quoted in the Proposal for Services shall remain in effect for a period of two (2) years from the date of execution of this Agreement. After the expiration of two (2) years from the date hereof, the contract prices stated in the Proposal for Services shall by renegotiated between BESH and Client with respect to all services and tasks that have not been completed by that date. The hourly rates set forth in the hourly rate schedule that is part of this Agreement shall apply to all additional services requested by Client outside the scope of the services and tasks described in the Proposal for Services. Said hourly rates are applicable through December 31st of the year in which this Agreement was executed, and are subject to renegotiation on January 1 of each year thereafter. E. REGULATORY REQUIREMENTS: The contract prices and hourly rates set forth in this Agreement have been quoted based on all federal, state and local regulations in effect as of the date that the authorization to proceed work is signed by the latter of BESH and Client. If any of said regulations change during the permitting and design phase of this project, BESH reserves the right to increase fees for services that may be affected by regulatory changes upon written notice to the Client. F. PERMIT ACQUISITION BESH cannot guarantee the acquisition of any or all of the permits and/or approvals that shall be required for Client’s project. BESH agrees that it shall exercise its best efforts try to obtain all of the necessary permits and/or approvals. Nevertheless, Client shall be responsible for payment of all consulting fees due BESH regardless of agency/governmental actions, including without limitation the failure of one or more governmental agencies to give the necessary approval for the project. Page 6 of 12 PROJECT: CLIENT: DATE: II. Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 COMPENSATION A. ADDITIONAL SERVICES: BESH shall be fully compensated by Client for all additional services performed by BESH, including, without limitation, the following: B. 1. Changes made at Client’s request to the scope of services defined in this Agreement. Client must sign a separate authorization to proceed form (a “Change Order’) for each change in scope of services requested by Client before BESH is obligated to perform the revised scope of services. In the absence of a Change Order executed by Client, BESH shall proceed according to the original scope of services as set forth in this Agreement. Notwithstanding the foregoing, BESH may choose to proceed with a Clientrequested change in scope of services despite the absence of a Change Order signed by Client. If BESH performs the requested change in scope of services, BESH shall be entitled to full compensation from Client based on the prevailing prices or the hourly rates charged by BESH for such services at the time that BESH performs the changed scope of services for Client. 2. Revisions made necessary as a result of changes to local, state or federal governmental requirements after the date of this Agreement. 3. Redesign per Client after preliminary design has been submitted to the relevant approving agency. OUT-OF-POCKET EXPENSES: In addition to the fee schedule set forth in the Proposal for Services and the hourly rates to be charge for all additional services performed by BESH, BESH shall be reimbursed for all out-of-pocket expenses incurred by BESH, including, without limitation: blueprints, copies, plots, aerials, express deliveries, specialized postage, overnight courier services (such as Federal Express and UPS) and travel outside of the Central Florida area (greater than 25 miles from BESH’s office located in Tavares, Florida). Printing and mileage expenses are set forth on the hourly rate schedule that is part of this Agreement. All other charges shall be billed to and paid by Client based on the actual costs incurred by BESH. Page 7 of 12 PROJECT: CLIENT: DATE: C. Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 PAYMENT: BESH shall submit invoices to Client on a monthly (once per month) basis. On each invoice, BESH will bill for its services in accordance with the hourly rate schedule included as part of this Agreement. The invoice also will identify the task or the tasks from the Proposal for Services on which BESH performed services during the billing period. If the Proposal for Services states a lump sum dollar figure for any particular task, the lump sum amount will represent a “not to exceed” figure for the task in question, and BESH will continue to bill by the hour for its services on that task until the “not to exceed” figure has been billed in full. Thereafter, unless the scope of services to be performed by BESH pursuant to said task has been changed and the compensation to be paid to BESH has been modified pursuant to Section II.A. of these Terms and Conditions, BESH will continue to perform its services under that task without additional charges for its services until BESH has performed all work required by that task. Client shall notify BESH in writing within thirty (30) days from the date of the invoice if Client has any questions about the services performed for the charges for those services as reflected on the invoice. Client waives any and all challenges to the services performed and the charges for those services not raised within said thirty (30) day timeframe. All invoices shall be due and payable in full within thirty (30) days from the date of the invoice. All unpaid balances that remain unpaid after thirty (30) days from the date of the invoice shall be subject to interest on the unpaid balance at the rate of 1.5% per month. III. MISCELLANEOUS A. FORCE MAJEURE: BESH shall not be liable for any delays or failure in performance due to contingencies beyond BESH’s reasonable control including, without limitation, acts of God, war, fire, explosion, flood, epidemic, severe weather, earthquake, rainstorm, riots, theft, accidents, strike, work stoppage, acts or regulations of a governmental entity, shortages of vehicles, fuel, power, labor or material, delays of other companies or contractors, or any other causes whatsoever whether similar or dissimilar to those previously enumerated. In the event of delay caused by any of the foregoing, BESH’s time for performance shall be extended for such time as may be reasonably necessary to enable BESH to perform. B. LIMITATION OF LIABILITY: Under no circumstances shall BESH be liable for any special, incidental, indirect or consequential damages, including without limitation lost profits, liquidated damages, delays, loss of productivity, inefficiency, loss of good will, or any other damages which are special, incidental, indirect of consequential. The liability of BESH to Page 8 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 client, for any cause or combination of causes arising out of or related to this agreement, shall be limited to the total amount of the compensation paid by client to BESH pursuant to this Agreement. C. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between BESH and Client and supercedes any and all prior or contemporaneous understandings, representations and agreements, oral or written. No amendment, modification or waiver hereof will be binding on BESH unless made in writing and duly executed by an authorized representative of BESH. D. WAIVER: The failure of BESH to enforce any provision of this Agreement or to exercise any right accruing through the default of the Client hereunder, shall not constitute a waiver of any other rights of BESH with respect to this Agreement. E. COSTS AND ATTORNEY'S FEES: In the event of any default on the part of either party to this Agreement and the necessity to initiate court action for the enforcement of any right hereunder, then in such event, the prevailing party in such action shall be entitled to recover all reasonable costs and expenses of such action, including reasonable attorney’s fees. F. GOVERNING LAW; VENUE: This Agreement shall be governed by and construed under the laws of the State of Florida. Venue for any proceeding based upon this Agreement shall lie exclusively in the state court of competent jurisdiction in Lake County, Florida. G. SEVERABILITY: If any provision of this Agreement is held invalid or otherwise unenforceable, the enforceability of the remaining provisions shall not be impaired thereby but rather this Agreement shall be construed as if not containing the particular invalid or unenforceable provision or provisions and the rights and obligations of the parties shall be construed and enforced accordingly. H. STATEMENT REGARDING DESIGN PROFESSIONALS (ABSENCE OF LIABILITY). Page 9 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 THIS AGREEMENT HAS BEEN ENTERED INTO BETWEEN CLIENT AND BESH. CLIENT ACKNOW LEDGES AND AGREES THAT THE INDIVIDUAL EMPLOYEES AND AGENTS OF BESH, INCLUDING W ITHOUT LIMITATION THE DESIGN PROFESSIONALS W HO ARE EMPLOYEES OR AGENTS OF BESH, ARE NOT PARTIES TO THIS AGREEMENT. PURUSANT TO SECTION 558.0035, FLORIDA STATUTES, THE INDIVIDUAL EMPLOYEES OR AGENTS OF BESH (IN C L U D IN G W IT H O U T L IM IT A T IO N A LL E N G IN E E R S , SURVEYORS, AND OTHER DESIGN PROFESSIONALS W HO ARE EMPLOYEES OR AGENTS OF BESH), SHALL NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE ARISING OUT OF OR RELATED TO ANY W ORK PERFORMED BY SAID EMPLOYEES OR AGENTS PURSUANT TO THIS AGREEMENT. Page 10 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 AUTHORIZATION TO PROCEED PROPOSAL FOR CIVIL ENGINEERING SERVICES AS DESCRIBED IN THE ATTACHED PROPOSAL To acknowledge your agreement with the terms and conditions set forth in this Agreement (consisting of the Proposal for Services, the Terms and Conditions, the Hourly Rate Schedule and this Authorization to Proceed), and to provide Booth, Ern, Straughan & Hiott, Inc. (BESH) with Client’s authorization to proceed with the work described in the Agreement, please fill out and sign the Authorization to Proceed below and return it to our office. We will schedule the work upon receipt of the executed Authorization to Proceed. The contract prices, hourly rates, and costs for printing and similar expenses set forth in this Agreement shall be valid for ninety (90) days from the date of this proposal. If this Agreement is not accepted by Client within said period of ninety (90) days, BESH reserves the right to modify any and all of the contract prices, hourly rates and cost figures set forth herein. Retainer Amount: $ N/A THIS PROPOSAL/AGREEMENT ACCEPTED THIS _____ DAY OF ________, 2013. Booth, Ern, Straughan & Hiott, Inc. Client Signature Signature By: Duane K. Booth, P.E. By: Title: Principal Title: Page 11 of 12 PROJECT: CLIENT: DATE: Phase 1 ESA of Merrill Property, Alternate Key #1105145 and #1212090, Umatilla, Florida, Lake County Glenn A. Irby, City Manager, City of Umatilla November 4, 2013 CLIENT INFORMATION FORM To assist Booth, Ern, Straughan & Hiott, Inc., to prepare the requested proposal, please complete the information below: PRINT NAME & TITLE: COMPANY NAME: BILLING ADDRESS: PHONE: FAX: E-MAIL: DATE: CLIENT REPRESENTATIVE: IS CLIENT THE OWNER OF THE SUBJECT PROPERTY?: YES: _______ NO: ______ (If no, Booth, Ern, Straughan & Hiott, Inc., reserves the right to require a retainer prior to commencing services.) Is the property accessible? If gated/locked, who shall BESH contact to gain access to the property? NAME AND PHONE NUMBER: I HEREBY CERTIFY THAT THE ABOVE INFORMATION IS TRUE TO THE BEST OF MY KNOWLEDGE. SIGNATURE: H :\am y\W ordP erfect-9.0\P roposals\C ity of U m atilla\M errill Property\B E S H Proposal 11-4-13.wpd Page 12 of 12 Proposal to Perform a Phase I ESA Alternate Key #’s 1105145 and 1212090 Umatilla, Lake County, Florida Page 1 November 1, 2013 AEI Proposal No: P3300.Pro TO: Booth, Ern, Straughan and Hiott, Inc. 350 North Sinclair Avenue Tavares, Florida 32778 Attn: SUBJECT: Mr. Duane Booth, P.E. Proposal to Conduct Phase I ESA, Commercial Property, Parcel Alternate Key Numbers 1105145 and 1212090, Umatilla, Lake County, Florida Dear Mr. Booth: Pursuant to your request, Andreyev Engineering, Inc. (AEI) has prepared this proposal to conduct a Phase I ESA in accordance with ASTM E 1527-05, for the subject property. We understand that the site is located in Umatilla, Florida. The purpose of ASTM E 1527-05 is to define good commercial and customary practice for conducting an environmental assessment of a parcel of commercial real estate with respect to the range of contaminants within the scope of Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and petroleum products. A Phase I ESA completed under ASTM E 1527-05 will permit the user to satisfy one of the requirements to qualify for the innocent landowner, contiguous property owner, or bonafide prospective purchaser limitations on CERCLA liability which are identified as the “landowner liability protections” (LLPs). This practice constitutes “all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice” as defined in CERCLA, 42 U.S.C. '9601(35)(B). The Phase I ESA will be signed by an Environmental Professional and will determine if “Recognized Environmental Conditions” are present on-site or off-site and does not involve soil or groundwater sampling. The Phase I ESA tasks are summarized as follows: Conduct a review of applicable historical sources, including available historical aerial photographs, U.S.G.S. quadrangle maps and city directory listings. Conduct a review of regulatory database search information, and contact as appropriate, relevant County, State, and Federal agencies to further review applicable information is present in their files concerning contamination on site, or in the immediate vicinity of the site, and whether or not there are any off-site facilities which may potentially impact the subject site. Conduct interviews (as applicable) with the current owner(s) and previous owner(s), current and previous tenants, and applicable government officials. Proposal to Perform a Phase I ESA Alternate Key #’s 1105145 and 1212090 Umatilla, Lake County, Florida Page 2 Conduct a site reconnaissance, to look for visual evidence of past or current deposition of hazardous materials on or adjacent to the site, as well as to further investigate any areas of concern disclosed by the review of the historical sources or regulatory agency records. Items such as petroleum storage tanks and previous use of chemicals are carefully examined. Phase I ESA Report Preparation: Upon completion of the above tasks, AEI will provide a written report documenting our findings. This written report will include the following items: a) b) c) d) Documentation of the investigation methods and results. A determination concerning the presence of ARecognized Environmental Conditions@, pursuant to ASTM E 1527-05. A determination concerning if additional Phase I ESA activities are applicable to detect the presence of ARecognized Environmental Conditions@ for the subject site. Applicable recommendations for conducting ASTM E 1527-05 non-scope items, such as conducting soil and/or groundwater sampling and testing. Please note that this proposal does not include any additional services with may be applicable to a commercial real estate transaction, such as asbestos, lead paint, radon, lead in drinking water, or wetlands, regulatory compliance, or other non-scope items identified in Section 13.0 of ASTM E 1527-05. Cost and Authorization AEI proposes to provide the above service at a cost of $1,650.00. This price does not include a chain of title search. The cost to perform a Phase II environmental assessment, subsequent to the completion of a Phase I ESA, would be an additional cost of approximately $5,000.00. A detailed scope of services and associated cost for a Phase II environmental assessment cannot be determined prior to the completion of a Phase I ESA. Based on our current schedule of work, we can provide a completed Phase I ESA report within 2 weeks. To authorize us to proceed with this project, please execute and return to us a signed copy of this proposal. Authorization should be indicated by the person or firm responsible for payment of our invoice. In addition, if there are any special conditions regarding site access, please let us know. As part of this project, we will need a copy of a site plan for specific property boundaries, and identification of the current owner or owner representative and/or tenant, to conduct interview(s) concerning the subject site. Upon acceptance of this proposal, along with the attached General Conditions, please sign one copy and return to this office. Please note that the General Conditions are an integral part of this contract and are controlling unless both parties expressly waive them in writing prior to commencement of work. Further, and whether this proposal is executed or not, the ordering of, acceptance of, or reliance on services performed by AEI constitutes acceptance of the attached General Conditions. Proposal to Perform a Phase I ESA Alternate Key #’s 1105145 and 1212090 Umatilla, Lake County, Florida Page 3 AEI appreciates the opportunity to submit this proposal and we look forward to being of service to you on this project. If you have any questions, or if we can provide any additional information, please feel free to call us at your convenience. Sincerely, ANDREYEV ENGINEERING, INC. Mark D. Richter, P.G. Project Geologist Attachment: General Conditions ACCEPTED BY: Signature: __________________________________ Print Name: __________________________________ Title: __________________________________ Date: __________________________________ GENERAL CONDITIONS Parties And Scope Of Work: Andreyev Engineering, Inc. (hereinafter referred to as " AEI") shall include said company, its individual professionals, employees, agents, divisions, subsidiaries, parents or affiliates performing the Work. "Work" means the specific services to be performed by AEI as set forth in AEI’s proposal, the Client’s acceptance thereof, both incorporated herein by this reference, and these General Conditions. "CLIENT" refers to the person or business entity ordering the Work to be done by AEI. If the CLIENT is ordering the Work on behalf of a third party, the CLIENT represents and warrants that the CLIENT is the duly authorized agent of said third party for the purpose of ordering and directing said Work. In the event CLIENT is not the authorized agent of said third party, CLIENT agrees that he shall be individually liable hereunder. Further, CLIENT shall disclose any such agency relationship to AEI in writing before the commencement of AEI’s Work hereunder. CLIENT agrees that AEI’s professional duties are specifically limited to the Work as set forth in AEI’s proposal. The CLIENT assumes sole responsibility for determining whether the quantity and the nature of the Work ordered by the CLIENT is adequate and sufficient for the CLIENT’s intended purpose. CLIENT shall communicate these General Conditions to each and every third party to whom the CLIENT transmits any part of AEI’s Work. AEI’s Work is for the exclusive use of CLIENT, and its properly disclosed principal. In no event shall AEI have any duty or obligation to any third party. The ordering of Work from AEI shall constitute acceptance of the terms of AEI’s proposal and these General Conditions. Payment: Payment shall be due within 30 days after date of invoice. Interest at the rate of 18% per annum (or the highest rate allowable by law) from 30 days after date of invoice to date payment is received will be added to all amounts not paid within 30 days after date of invoice. All attorneys’ fees and expenses associated with collection of past due invoices will be paid by CLIENT. Failure to timely pay any AEI invoice shall constitute a waiver of any and all claims against AEI. Right-of-Entry: Unless otherwise agreed, CLIENT will furnish right-of-entry on the property for AEI to make the planned borings, surveys, and/or explorations. AEI will take reasonable precautions to minimize damage to the property caused by its equipment and sampling procedures, but the cost of restoration or damage which may result from the planned operations is not included in the contracted amount. If CLIENT desires to restore the property to its former condition, AEI will accomplish this and add the cost to its fee. Damage to Existing Man-made Objects: It shall be the responsibility of the CLIENT or his duly authorized representative to disclose the presence and accurate location of all hidden or obscure man-made objects relative to field tests, sampling, or boring locations. In addition, CLIENT waives any claim against AEI arising from any damage to existing manmade objects. Warranty and Limitation of Liability: AEI shall perform services for CLIENT in a professional manner, using that degree of care and skill ordinarily exercised by and consistent with the standards of competent consultants practicing in the same or a similar locality as the project. In the event any portion of the services fails to comply with this warranty obligation and AEI is promptly notified in writing prior to one year after completion of such portion of the services, AEI will re-perform such portion of the services, or if re-performance is impracticable, AEI will refund the amount of compensation paid to AEI for such portion of the services. This warranty is in lieu of all other warranties. No other warranty, expressed or implied, including warranties of merchantability and fitness for a particular purpose is made or intended by the proposal for consulting services, by furnishing an oral response of the findings made or by any representations made regarding the services included in this agreement. In no event shall AEI be liable for any special, indirect, incidental, or consequential loss or delay or time-related damages. The remedies set forth herein are exclusive and the total liability of consultant whether in contract, tort (including negligence whether sole or concurrent), or otherwise arising out of, connected with or resulting from the services provided pursuant to this Agreement shall not exceed the total fees paid by CLIENT or $50,000.00, whichever is greater. If CLIENT prefers to have higher limits on professional liability, AEI agrees to increase the limits up to a maximum of $1,000,000 upon CLIENT’s written request submitted with this executed proposal; provided that CLIENT pays an additional consideration of four (4) percent of the total fee, or $400, whichever is greater, with said request. In the event professional fees increase during a project, CLIENT agrees to pay an additional four (4) percent of said increase for the aforementioned higher limits on professional liability. The additional charge for the higher liability limits is required due to the greater risk assumed by AEI and is not to be construed as a charge for professional liability insurance. In no event shall AEI be responsible for any consequential or incidental damages arising out of this agreement and/or AEI’s services. Sampling or Testing Location: Unless specifically stated to the contrary, the unit fees included in this proposal do not include costs associated with professional land surveying of the site or the accurate horizontal and vertical locations of tests. Field tests or boring locations described in our report or shown on our sketches are based on specific information furnished to us by others or estimates made in the field by our technicians. Such dimensions, depths or elevations should be considered as approximations unless otherwise stated in the report. Sample Handling and Retention: Generally test samples or specimens are consumed and/or substantially altered during the conduct of tests and AEI, at its sole discretion, will dispose (subject to the following) of any remaining residue immediately upon completion of test unless required in writing by the CLIENT to store or otherwise handle the samples. (a) NON HAZARDOUS SAMPLES: At Client’s written request, AEI will maintain preservable test samples and specimens or the residue therefrom for thirty (30) days after submission of AEI’s report to CLIENT free of storage charges. After the initial 30 days and upon written request, AEI will retain test specimens or samples for a mutually acceptable storage charge and period of time. (b) HAZARDOUS OR POTENTIALLY HAZARDOUS SAMPLES: In the event that samples contain substances or constituents hazardous or detrimental to human health, safety or the environment as defined by federal, state or local statutes, regulations, or ordinances ("Hazardous Substances" and "Hazardous Constituents", respectively), AEI will, after completion of testing and at Client’s expense: (i) return such samples to CLIENT; (ii) using a manifest signed by CLIENT as generator, will have such samples transported to a location selected by CLIENT for final disposal. CLIENT agrees to pay all costs associated with the storage, transport, and disposal of such samples. CLIENT recognizes and agrees that AEI is acting as a bailee and at no time does AEI assume title of said waste. Discovery of Unanticipated Hazardous Materials: Hazardous materials or certain types of hazardous materials may exist at a site where there is no reason to believe they could or should be present. AEI and CLIENT agree that the discovery of unanticipated hazardous materials constitutes a changed condition mandating a renegotiation of the scope of work or termination of services. AEI and CLIENT also agree that the discovery of unanticipated hazardous materials may make it necessary for AEI to take immediate measures to protect health and safety. AEI agrees to notify CLIENT as soon as practicable should unanticipated hazardous materials or suspected hazardous materials be encountered. CLIENT encourages AEI to take any and all measures that, in AEI’s professional opinion, are justified to preserve and protect the health and safety of AEI’s personnel and the public. CLIENT agrees to compensate AEI for the additional cost of working to protect employees' and the public's health and safety. In addition, CLIENT waives any claim against AEI arising from AEI’s discovery of unanticipated hazardous materials or suspected hazardous materials. Indemnification: CLIENT agrees to defend, indemnify and save harmless AEI from all claims, including negligence claims, suits, losses, personal injuries, death and property liability resulting from AEI’s performance of the proposed work, whether such claims or damages are caused in whole or in part by AEI, and agrees to reimburse AEI for expenses in connection with any such claims or suits, including reasonable attorneys’ fees. CLIENT’s obligation to indemnify is limited to $2 million per occurrence, which CLIENT agrees bears a reasonable commercial relationship to the Work undertaken by AEI. CLIENT further agrees that these general conditions are a part of the Work’s specifications or bid documents, if any. Legal Jurisdiction: The parties agree that any actions brought to enforce any provision of this Agreement shall only be brought in a court of competent jurisdiction located in Orlando, Orange County, Florida. All causes of action, including but not limited to, actions for indemnification, arising out of AEI’s Work shall be deemed to have accrued and the applicable statutes of limitation shall commence to run not later than either the date of substantial completion of the Work for acts or failures to act occurring prior to substantial completion, or the date of issuance of AEI’s final invoice for acts or failures to act occurring after substantial completion of the Work. Force Majeure: AEI shall not be held responsible for any delay or failure in performance of any part of this Agreement to the extent such delay or failure is caused by fire, flood, explosion, war, strike, embargo, government requirement, civil or military authority, acts of God, act or omission of subcontractors, carriers, CLIENT or other similar causes beyond its control. Successors and Assigns: Neither the CLIENT nor AEI shall assign, sublet or transfer any rights under or interest in this agreement without the written consent of the other. Nothing herein shall be construed to give any rights or benefits hereunder to anyone other than the CLIENT or AEI.
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