Request for Proposals s15

PENOBSCOT RIVER RESTORATION TRUST

REQUEST FOR PROPOSALS Appraisals of the Veazie, Great Works, and Howland Hydroelectric Projects, Maine

March 20, 2009

Introduction

The Penobscot River Restoration Trust (Penobscot Trust) is a 501(c)(3) Maine not-for-profit organization whose sole mission is to restore the Penobscot River ecosystem by implementing the historic Lower Penobscot River Comprehensive Settlement Accord (the Penobscot Agreement), a legally binding, innovative, public-private plan for restoring Maine’s Penobscot River.

The Penobscot Trust is working in collaboration with several partners to implement the Agreement: current dam owner PPL Corporation; the Penobscot Indian Nation and six conservation organizations (American Rivers, Atlantic Salmon Federation, Maine Audubon, Natural Resources Council of Maine, The Nature Conservancy, and Trout Unlimited); the United States Department of the Interior (Bureau of Indian Affairs; National Park Service; and U.S. Fish and Wildlife Service); and the State of Maine (Department of Inland Fisheries and Wildlife; Department of Marine Resources; and State Planning Office). The National Oceanic and Atmospheric Administration is also a major project partner.

As part of implementing the Agreement, the Trust will be purchasing three hydroelectric facilities: the Veazie Project located in Veazie and Eddington, ME; the Great Works Project located in Old Town, Milford, and Bradley, ME; and the Howland Project located in Howland, ME. Detailed project descriptions are provided below.

The Trust exercised its option to buy the projects on October 10, 2008 and filed, on November 7, 2008, applications for all necessary state and federal permits. Certain permits, such as for transfer of ownership, were filed jointly with PPL Corporation. The Trust intends to take title to the dams in the fall of 2009, though circumstances could result in an earlier closing.

Appraisal Assignment

The Trust wishes to conduct appraisals of three Federal Energy Regulatory Commission (FERC) hydroelectric projects – Veazie, Great Works, and Howland – compliant with both the Uniform Standards of Professional Appraisal Practices (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisition (UASFLA – “the yellow book”). The Trust has prepared this RFP in order to solicit proposals from qualified contractors with a valid Maine Certificate as a Certified General Appraiser to provide the deliverables requested in the attached Statement of Work and further described in the Appraisal Problem below. The Trust wishes this to be a single assignment. We will be working with our partners and the Appraisal Services Directorate (ASD) to review proposals and select a contractor. Additional information will be provided to the selected appraiser prior to contracting.

 Proposals are due to the Trust by Wednesday, April 8, 2009 at 5:00 p.m. – extensions will not be granted.  A pre-bid conference call with the selection team is scheduled for Tuesday, March 31, 2009 at 1:30 p.m. (Q&A format).  The successful bidder will be required to meet with the Trust, Appraisal Services Directorate representatives, and representatives from applicable project partners at the time of property inspection.

P.O. Box 5695 ~ Augusta, ME 04332 Tel. 207-232-5976 www.penobscotriver.org PENOBSCOT RIVER RESTORATION TRUST MARCH 20, 2009

Penobscot River Restoration Appraisal Problem

The portion of the Penobscot River Restoration project which requires appraisals is the acquisition of three dams along with the adjoining lands owned and utilized by the hydroelectric power company, the upstream flowage easements, the power generating facilities, including associated turbines, accompanying equipment, equipment and facilities to transmit the power from the site in to the power grid, and all portions of the personalty required to continue the operation of the facilities (the Projects). All FERC, Maine DEP, and U.S. Army Corp of Engineers licenses and permits associated with each of the dams will be included in the appraisal problem.

Issues regarding the appraisal assignment:  There are three separate dams and generating facilities, two located on the Penobscot River and one on the Piscataquis River which are to be appraised, all with varying equipment and facilities, and generating capabilities.  Environmental site assessments have been prepared for all three of the sites. Although these reports do not identify any significant sources of contamination, they should be reviewed as part of the appraisal process. The documents are subject to confidentiality provisions with the existing owner.  At least one of the dam sites include an older dam upstream which is underwater, due to, it is believed, a past failure of the dam, plus small manmade logging or boom islands previously used in log drives to anchor log rafts.  ASD will assist in the preparation of appraisal request, Statement of Work, be the COTR for the appraisal project, and the reviewing authority for the final report.

Note to bidders:

La Capra Associates, a full service energy consulting firm with experience in wholesale maker transaction in many regions across the U.S., conducted some prior market valuations of the three facilities in association with the Penobscot River Restoration Project. Activities included researching the current operating configurations, reviewing FERC license extension applications, estimating capital improvements required for fish passage and to increase output, and developing pro forma financial models and discounted cash flow estimates of asset values. The valuation reports will be made available to the successful bidder.

La Capra is a potential resource for the appraisal assignment and is interested in participating as a sub-contractor. Contact Dan Peaco, President, La Capra Associates, Inc. at 617-778-5515 x110 for more information. La Capra has offices in Boston, MA and Portland, ME.

Veazie Dam and Hydroelectric Generator Plant (FERC No. 2403):  This is the dam which is the furthest downstream (south) of the three dams and is the first dam on the river. It consists of the dam with two fishways, one of which has been out of service due to an inadequate design. The dam is 850 feet long and has a maximum height of 34 feet. Its main spillway is a concrete, Ambursen-type design built in 1913, and impounds 390 acres of river that extend upstream 3.8 miles. Associated with the dam is an 8.4 MW power generating facility (two powerhouses) with FERC permits and licenses to continue this use. The site also includes land on both sides of the river, and flowage easements upstream along the banks of the river. The full interest in the dam, generating facility, onshore lands, and flowage easements are to be acquired. The site has some contamination which would need to be considered in the appraisal.

Request for Proposals: Appraisals of the Veazie, Great Works, and Howland Hydroelectric Projects, Maine

PENOBSCOT RIVER RESTORATION TRUST MARCH 20, 2009

 The dam is operated for power generation, thus the appraisal will be of market value, with consideration given to continuing the hydropower generation capability of the facility. The appraisal will be of both the real and personal property required to continue the operation, upstream flowage easements, and the value which the FERC, Maine DEP, and U.S. Army Corp of Engineers permits and licenses carry for the continuing operation of the facility.

Great Works Dam and Hydroelectric Generator Plant (FERC No. 2312):  This dam is approximately 7 miles upstream (north) of the Veazie dam. It consists of the dam with a 7.917 MW generating facility, and one fishway. The dam is 1,353 feet long and up to 19 feet high. It has a single powerhouse and impounds 128 acres of river that extend upstream 1.7 miles to below the tailrace of the Milford Dam. This dam is subject to certain operational requirements, set forth in several agreements between the dam owner and the owner of the attached mill. Copies of these agreements are to be provided for the appraiser’s use. Across the river are additional lands owned with the dam, including a ball field currently used, with permission, by the town of Bradley. All of the land and flowage easements owned by the power company associated with the dam, including the ball field are to be acquired with the dam. Also to be acquired is the generating equipment to keep the plant running and the FERC permits and licenses as well as the flowage easements associated with the dam.  The dam is operated for power, thus the appraisal will be of market value, with consideration given to continuing the hydropower generation capability of the facility. The appraisal will be of both the real and personal property required to continue the operation, lands, upstream flowage easements, and the value which the FERC, Maine DEP, and U.S. Army Corps of Engineers permits and licenses carry for the continuing operation of the facility.

Howland Dam and Hydroelectric Generator Plant (FERC No. 2721):  This facility is located approximately 30 miles upstream (north) from the other two dams on a major tributary, the Piscataquis River, at the confluence with the main stem Penobscot River. It consists of the dam, a 1.875 MW generating facility, a fishway, lands on both sides of the river, and associated flowage easements. The dam is approximately 17 foot high dam with a 570 foot long spillway and is fitted with flashboards approximately 42 inches in height. The Howland impoundment extends upstream for approximately 4.7 miles, with an area of around 270 acres. There exists contamination on the abutting property owned by the Town of Howland, thus consideration will need to be made of this by the appraiser. Various environmental reports, studies, site assessments, etc. will be provided to the appraiser; however they will be subject to confidentiality requirements. All lands, flowage easements, and facilities associated with the facility, including the FERC permits and licenses are to be acquired.  The dam is operated for power generation, thus the appraisal will be of market value, with consideration given to the hydropower generation capability of the facility. The appraisal will need to be of both the real and personal property required to continue the operation, land, upstream flowage easements, and the value which the FERC permits and licenses carry for the continuing operation of the facility.

All appraisals should potentially have an Income Approach to value, thus operating expenses and income statements from the owners will be needed for use by the appraiser. The Trust will assist in attempting to obtain this information. This information will remain confidential until the appraiser is selected, and under contract with the Trust, and once provided to the appraiser will be subject to confidentiality requirements between the Trust, existing owner, and the appraiser.

Selection Process & Procedure

Proposals:

1. Consultants are required to submit either an electronic proposal via email (preferred) or to mail one (1) original and five (5) copies of their proposal package, plus one electronic copy of their proposal by the indicated proposal due date. Double-sided copies are appreciated. The package shall include: a. Technical Proposal, not to exceed ten (10) typed, single-spaced pages. Include a detailed breakdown of proposal including bid amount, estimated completion deadline, options for expediting the completion deadline, and sub-contractors (if needed). b. Statement of Qualifications and directly relevant work experience (including sub- contractors), not to exceed seven (7) pages. The consultant shall clearly identify a primary contact for their proposal and clearly provide that person’s phone number and email address. c. List of references who may be contacted about the consultant’s qualifications and work experience, not to exceed one (1) page. d. (Optional) Curriculum vitae or resumes for project team members (include any sub- contractors), not to exceed two (2) pages per team member.

2. The selection team will evaluate the proposals based on the following criteria: a. Experience with appraisal pursuant to the Uniform Standards of Professional Appraisal Practices (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisition (UASFLA – “the yellow book”) b. Experience appraising hydropower generating assets, c. If sub-contractors are to be retained, the relevant experience and qualifications of the sub- contractors will also be considered, d. Clarity and presentation of proposal, e. Timeline – ability to complete appraisals by mid-summer 2009 (please indicate if you can complete the appraisals on a quicker schedule or if there is a potential to expedite the appraisals upon request), f. Cost, g. Demonstration of successful completion of similar appraisals (complexity, scope, and timeline) within tight time constraints and on budget.

3. Based on the written proposals, the selection team will select 2 or more candidates to interview. Following the interview, the selection team will select a preferred contractor and proceed with contract negotiation with that firm.

Contact and Submission:

All proposals are due Wednesday, April 8, 2009, at 5 p.m. – no exceptions

 Electronic submittals are preferred and should be emailed to:

George Aponte Clarke, Deputy Director, Penobscot River Restoration Trust [email protected]

 Written proposals should be submitted by mail along with a CD-ROM containing an electronic version of the full proposal package to:

George Aponte Clarke Deputy Director Penobscot River Restoration Trust 3 Wade Street Augusta, ME 04330

Please contact George Aponte Clarke at 207-430-0142 or 207-232-9996 with questions. Please limit you questions to those regarding process prior to the pre-bid conference call. Substantive questions about the Penobscot Project and Appraisal Assignment will be address during the pre- bid conference call to ensure that we provide consistent responses and information to all bidders. In formation about the Penobscot Project can be found on the web at www.penobscotriver.org.

Disclaimer:

This RFP does not commit the Trust to award a contract or to pay any costs incurred during the preparation of the proposal. The Trust reserves the right to reject any or all of the proposals for completing this work. The Trust also reserves the right to eliminate the need for the selected consultant to complete one or more tasks, pending the outcome of preceding related tasks or issues, and/or the availability of project partners to complete that task.

STATEMENT OF WORK, PENOBSCOT RIVER RESTORATION PROJECT

The bidder shall provide detail on their approach, deliverables, cost, and timeline (including alternative for an expedited schedule) for the following appraisal assignment

SECTION 1 – SUBJECT IDENTIFICATION & GENERAL INFORMATION

Summary Identification: The property is located in Penobscot County, Maine. It is three hydropower projects on the Penobscot River, including the Veazie, Great Works, and Howland dams and associated real and personal property. The property type is 3 turn of the century run- of-river dams with no reservoir capacity, hydroelectric generating facilities, with associated lands, easements, equipment, licenses, and permits. The proposed client action is acquisition of all the interests in the property and facilities in a “turn key” condition. The facilities are held in fee and easement, plus any personalty to be included.

Client: Penobscot River Restoration Trust who’s contact for the assignment is Laura Rose Day, Executive Director (207-430-0114) or George Aponte Clarke, Deputy Director (207-430-0142). The client’s technical representatives (COTR’s) for the appraisal are James D. Felty (413-253-8589) and/or Susan P. Russo (413-253-8529) with the Appraisal Services Directorate, Hadley, MA.

Intended Users: Penobscot River Restoration Trust (Trust), U.S. Fish and Wildlife Service (FWS), Appraisal Services Directorate (ASD), and National Oceanic and Atmospheric Administration (NOAA).

Intended Use: For use by intended users in connection with the proposed acquisition and funding of the acquisition of the identified property. The report potentially may be used by the Trust for title insurance purposes. The appraisal report is not intended for any other use.

Property Description:

Veazie Project (FERC No. 2403): PPL Maine, LLP owns the Veazie Project, located on the Penobscot River in Veazie and Eddington, Maine, near the head of the tide on the Penobscot River. The project operates under the terms of a FERC license issued on April 20, 1998. The license expires on March 31, 2038. The Veazie Project is operated as a run-of-river facility, with inflow to the impoundment equal to the outflow from the dam and powerhouse. The Veazie Project has an installed capacity of 8.4 MW. The project spillway consists of a 64-foot long gravity concrete segment near its left abutment and a main 487-foot long concrete buttress segment with a maximum height of 32-feet. The spillway is constructed directly on bedrock, which is visible at the left abutment and downstream channel. Some of the other structural features include a 230-foot long masonry forebay wall, a fishway, and a 65–foot long radial gate structure. The main spillway is an Ambursen-type design built in 1913. The main spillway is made of concrete and has an impoundment area of 390 acres at a full pond elevation of 34.8-feet

PENOBSCOT RIVER RESTORATION TRUST MARCH 20, 2009 at mean sea level (MMI, 2004c). The site has two powerhouse buildings, an electrical substation, a river-crossing cable car structure, and two additional supporting structures. The Station A powerhouse contains 15 turbine-generator units with a total installed capacity of 5.4 MW. The Station B powerhouse is located immediately south of Station A. The two turbine- generator powerhouse at Station B has a total installed capacity of approximately 3,000 kW (3 MW).

Great Works Project (FERC No. 2312): The Great Works Hydroelectric Project (Great Works) is located on the Penobscot River at the Old Town Mill in Old Town, Maine and is owned by PPL Great Works, LLP, a wholly owned subsidiary of PPL Maine, LLP. The project operates under the terms of a FERC license which was issued on December 9, 1963, and expired on March 31, 2002. The project is currently operating under annual FERC licenses. Great Works consists of a dam and powerhouse with a total installed capacity of approximately 7,917 kW. Great Works includes a powerhouse containing 11 turbine-generator units; a non-overflow section with two operating fishways and three gated outlet pipes (one 6-foot square, two 9-foot diameter); and a spillway equipped with flashboards extending from the non-overflow section across the river to the east river bank in the Town of Bradley. The total length of the project dam is approximately 1,353 feet. The dam forms a 128-acre impoundment at a normal impoundment elevation of 81.73 feet (National Geodetic Vertical Datum 1929). The impoundment extends approximately 1.7 miles upstream to below the tailrace of the Milford Project (FERC No. 2534), which is owned and operated by PPL Maine, LLC. The tailrace is separated from the main river by an earthen dike, and the powerhouse discharges to the tailrace. The presence of the earthen dike creates a 1,200 foot long bypass reach (PPL, 2000). The project also includes two operating Dentil type fish ladders, one located in the tailrace, the other at the west end of the spillway. An older abandoned fish ladder is located near the center of the spillway. Great Works is operated as a run-of-river facility. (Please also refer to “Outstanding Rights” section below.)

Howland Project (FERC No. 2721): The Howland Project is located on the Piscataquis River approximately 500 feet upstream of its confluence with the Penobscot River in Howland, Maine and is owned by PPL Maine, LLP. The project operates under the terms of a FERC license which was issued on September 12, 1980, and expired on September 30, 2000. It is currently operating under annual FERC licenses. The project is operated as a run-of-river facility. The hydraulic capacity of the turbines is approximately 1,710 cfs. On an annual basis, this turbine capacity is exceeded approximately 47 percent of the time, while the capacity of the turbines and the gates (5,310 cfs) is exceeded approximately 16 percent of the time. When river flows exceed the hydraulic capacity of the units and the gates, water spills over the flashboards of the dam crest. The projected dam consists of a114.5-foot long concrete cutoff wall at the north embankment of the dam, a 6-foot long non-overflow abutment, a 570-foot long concrete overflow spillway, an 85-foot long section containing a gated spillway section with four 9-by 9 foot steel roller flood gates and the abandoned fishway facilities, a 20-foot long non-overflow section containing the exit of the upstream fishway, and a 76-foot long forebay entrance deck located immediately upstream of the powerhouse. The powerhouse has three existing generating units, which have a total combined generating capacity of 1,875 kilowatts at 19.8 feet of gross head. The turbines, which have a combined hydraulic capacity of 1,710 cfs, are all vertical Francis units. The impoundment has a surface area of 270 acres, with a normal headpool elevation of 148.2-feet (top of flashboards). The impoundment is approximately 4.7 miles long

PENOBSCOT RIVER RESTORATION TRUST MARCH 20, 2009 and extends from the dam to the upstream area of Doe Island (BHEC, 1998). The Howland dam is also equipped with a fishway that was constructed by the Bangor Hydroelectric Company in 1965.

Legal Description: Full legal description is attached, (recording information book and page, document number, etc.), and date of most recent recording of documents.

Ownership/Occupant: Fee owner of Veazie and Howland is PPL Maine, LLP. Fee owner of Great Works is PPL Great Works, LLP, a wholly owned subsidiary of PPL Maine, LLP.

Larger Parcel Issues: In the body of the appraisal report, the appraiser must identify the total acres to be appraised and the total acreage owned for Yellow Book “Larger Parcel” considerations. See Appraisal Requirement bullet, bottom page 7.

Personal Property: All personal property associated with the three dams is listed in the attached June 22, 2004 Lower Penobscot River Option Agreement (the “Option Agreement”).

Property Access: Legal and physical access exists as shown on the attached deeds.

Contact Information: Contact for access to the dam sites is Scott Hall (207-827-5364).

Inspection Permission: Permission to enter upon and appraise the property may be obtained by contacting Mr. Hall at the number listed above and Ms. Rose Day at the Trust.

Controversies / Issues: One or more of the sites and facilities may have spill-over contamination from adjacent properties. Various environmental reports, studies, and site assessment reports will be made available to the appraiser; however, they will be subject to confidentiality agreements.

Outstanding Rights: The facility at Great Works is subject to certain operating requirements that may impact dam operations, and as more specifically set forth in contracts or agreements between the mill owner and the PPL Great Works, LLP. The Trust will provide copies of these contracts or agreements. If the appraiser identifies other outstanding rights from the documents provided, or through their due diligence research, verification with the property owner is advised and notification of ASD Contracting Officer Representative (COTR) is required.

Provided Subject Property Information:

The following documents and reports will be available online at the time of selecting bids. Link to: http://www.penobscotriver.org/content/4086/Appraisals_RFP/

X Location Maps X Assessor’s Plats X Copies of Deeds and Flowage Easement Documents * Engineering Studies and Plans of Dams and Facilities (see below) X Photos

* A complete set of engineering studies and plans of the dams and facilities is not readily available, and those in hand do not provide complete information. Therefore, we have not included them in the depository of attachments. However, if you require additional information to accurately complete your proposal, we can put you in contact with our technicians.

Additional documents will be made available to the successful bidder including:

X Copies of Applicable Permits and/or Applications for Permits X Various Environmental Reports and Studies, including Phase 1 and Phase 2 Environmental Site Assessments, subject to confidentiality requirements. X Any contracts or agreements with the mill owner at the Great Works Project. X Expense Operating Statements for Income Approach, subject to confidentiality requirements.

SECTION 2 – APPRAISAL REQUIREMENTS & INSTRUCTIONS

Appraisal Standards: The appraisal report must conform to standards established by the Uniform Standards of Professional Appraisal Standards (USPAP), and the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA - Yellow Book). No other supplemental standards are applicable.

Market Value: “The amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal.” [Interagency Land Acquisition Conference, Uniform Appraisal Standards for Federal Land Acquisitions, 5th ed. (Appraisal Institute, 2000).]

Property Interest: The rights to be appraised are fee simple title, subject to outstanding rights and reservations of record to the three dams, along with the adjoining lands owned and utilized by the hydroelectric power company, the upstream flowage easements, the power generating facilities, including associated turbine units, accompanying equipment, equipment and facilities to transmit the power from the site into the power grid, and all portions of the personalty required to continue the operation of the facilities as identified in the “Option Agreement”. All FERC, Maine DEP, and U.S. Corps of Engineers licenses and permits associated with each of the dams will also be included in the appraisal problem for valuation as part of the facilities. In the body of the appraisal report, the appraiser must state precisely the property interest(s) (rights) to be valued. Reference can be made to the legal description and the specific encumbrances of record (the statement “… subject to reservations of record” is not acceptable). Any information developed by the appraisers, or observations that are found to be contrary to the described property rights must immediately be brought to the COR/COTR attention as a request for possible amended instructions.

Date of Value: Synonymous with the date of last property inspection; which should be no later than 30 calendar days prior to the submission of the completed appraisal report, unless the appraiser receives written approval from the COR/COTR prior to completion of the appraisal report.

Extraordinary Assumption(s): That the annual FERC licenses at Great Works and Howland will continue to be renewed annually. The Appraiser may not assume or invoke any other assumptions without documented written approval from the Trust or COR/COTR.

Hypothetical Condition(s): None allowed without documented written approval from the Trust or COR/COTR.

Jurisdictional Exception: If the Appraiser perceives that USPAP’s Jurisdictional Exception Rule should be invoked to meet certain standards in UASFLA, the Appraiser should contact the COR to obtain prior written approval.

Legal Instructions: No additional legal instructions at this time.

Special Appraisal Instructions:

Appraiser will be responsible for any subcontractors if necessary. This cost should be built into the bid.

General Appraisal Requirements & Instructions:

 The contracted Appraiser must hold a valid Maine Certificate as a Certified General Appraiser for the jurisdiction in which the subject property is located. (Valid credentials include those obtained directly from the jurisdiction, those issued under a reciprocity agreement, and/or those characterized as “temporary” under the jurisdiction’s licensing and certification statutes.)

 The Appraiser’s Scope-of-Work must result in credible assignment results for the intended use.

 The appraiser may be required to attend a pre-appraisal meeting with the property owner, the Trust, and ASD. The date, time and place of the meeting (if required) will be coordinated by the Trust and COR and communicated to the appraiser and other necessary parties.

 Appraisals with an intended use of acquisition require the Appraiser to offer the property owner and/or the owner’s representative an opportunity to accompany the Appraiser during the property inspection. The appraiser must certify in the report that such an offer was extended.

 The Appraiser must make a personal inspection of the subject property and all of the comparable market properties used in the analyses unless specific

arrangements to the contrary have been approved in writing by the COR prior to the commencement of the assignment.

 The appraisal is to be documented in a Self-Contained report format. See UASFLA page 9, which states that a report prepared in accordance with UASFLA will be considered as meeting the USPAP requirements for a Self-Contained report.

 The appraisal report will be reviewed for technical compliance with the terms of this Statement-of-Work, UASFLA Section C, and USPAP Standard 3. Findings of inadequacy, if any, will require clarification and/or correction to the report.

 The opinions of current market value may not be predicated upon potential highest and best uses that are speculative or conjectural. A proposed highest and best use requires showing reasonable probability that the land is both physically adaptable for such use and there is an economic need or demand for such use in the reasonably near future.

 The appraiser’s conclusion of highest and best use must be an economic use. A non-economic highest and best use, such as conservation, natural lands, preservation or any use that requires the property to be withheld from economic production in perpetuity, is not a valid use upon which to estimate market value.

 Essential in the appraiser’s conclusion of highest and best use is the determination of “Larger Parcel”. The appraiser must make a larger parcel determination in every appraisal conducted for any partial acquisition. (See UASFLA Section A-14)

 The preferred method of adjusting comparable sales is through supported quantitative adjustments (percentage, $/acre, etc.); qualitative adjustments (similar, inferior, or superior) are to be used only when the market variables cannot be quantified. Quantitative adjustments without support are unacceptable. When the Appraiser must resort to qualitative analyses, support that is more extensive and discussion of the Appraiser’s reasoning why a comparable sale is similar, inferior, or superior to the subject property is required. All adjustments must be supported by clear, appropriate, and credible analysis based on documented market research. Mere references to undisclosed “trends,” or reliance on the Appraiser’s “opinion” or “judgment” without market support is an unacceptable practice. Market support includes discussions with buyers/sellers, potential investors, brokers, etc. The Appraiser must also recognize that variances in sale prices may be caused by multiple factors and should not over adjust a comparable by double-counting overlapping items.

 Appraisers without a complete understanding of fundamental statistical concepts must not rely on regression analysis techniques to extract adjustments for the sales comparison approach. Without a discussion of how each comparable sale property relates to the subject property and a statistical interpretation of the validity of the results, applying a regression analysis to a large sample data set is not acceptable.

 Documentation of the comparable sales and other market data utilized in the appraisal must comply with reporting requirements of UASFLA and the Uniform Relocation Assistance & Real Property Acquisition Policies Act 1970. For instance, the latter requires “A description of the comparable sales, including a description of all relevant physical, legal and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction.”

 If sales to governmental entities, including sales to non- profit entities with the intention of transferring the sale property to a governmental entity, are included in the appraisal report, they are subject to extraordinary verification and treatment. They must be documented in accordance with the guidelines found in UASFLA Section D-9.

 Color photographs and maps of comparable properties shall be included in the appraisal report. Aerial photographs for comparable properties will be accepted unless the aerial photographs are so dated that they do not accurately represent the property as it physically existed on the date of inspection. Any unusual property features must be photographed from ground level.

 The appraisal report and all information furnished to the Appraiser are Trust and DOI internal documents and are to be considered confidential by the Appraiser. All requests for information concerning the appraisal must be referred to the Trust or COR. The general public is not an intended user of the appraisal report; however the Appraiser must also be aware that the Freedom of Information Act and Agency policy may result in the release of all or part of the appraisal report to others.

 The ASD will not normally accept custody of confidential information. Should the Appraiser find it necessary to rely on confidential information, he or she will contact the COR for instructions. The COR will arrange (if necessary) for the reviewer to view and use the information for the review and provide further instruction to the Appraiser regarding handling and storage of the confidential information.