A04_SOW_-_KCG_23_1_1.pdf

Contract Name: KCG_23_1 AVSO #23-087/AVIS #00215051 5/18/2023

AVSO Statement of Work Page 1 of 10

STATEMENT OF WORK (SOW)

Appraisal and Valuation Services Office (AVSO) - West Region - Alaska

AVSO Contract Name: KCG_23_1

AVSO Case ID: #23-087_AA-5976_Skonberg

AVIS Case Number: #00215051

Appraiser Instructions

1.

2. The appraiser will be provided with the appropriate contact information included in the Appraisal Request, which will be the BIA, designated 638 tribe if applicable, property owner and/or the AVSO Alaska Region Review Appraiser for this appraisal assignment (to be assigned upon report completion).

SECTION 1 – Subject Identification & General Information

Identification

Case ID: 23-087_AA-5976_Skonberg

Legal Description: Tract in Section(s) 7/12-T44S-R58/59W, Seward Meridian, US Survey

11263. (Appraisal Request will provide detailed characteristics, maps, and location of subject property).

Lat/Lon: 56°23'20.551"N/158°29'40.785"W

Acreage: 159.98 acres, more or less.

Property Type: Native Allotment

Transaction: Advertised or Negotiated Sale

Client The Department of Interior-Appraisal Valuation Services Office (AVSO).

Intended Users The US Department of Interior-Appraisal & Valuation Services Office-

Alaska (DOI-AVSO-AK) on behalf of the Bureau of Indian Affairs (BIA), Alaska, and Landowner.

Intended Use For use by the BIA Alaska Regional Office for Advertised or Negotiated

Sale purposes. It is not intended for any other use. The purpose of this appraisal is to have the Appraiser provide an opinion of supported Market Value of the subject per this Statement-of-Work (SOW) instructions as a part of the assignment.

AVSO Statement of Work Page 2 of 10

Property Description: The subject will be appraised as a/an vacant / improved parcel in/near Chignik Lagoon, Alaska. It is a Native Allotment held in restricted status by the United States of America for the landowners as per the BIA-Title Status Report. Any structural improvements located on the Subject property will be valued accordingly as real estate.

Property I.D.: Native Allotment AA-5976

Land Area: 159.98 acres, more or less.

Property Interest: Fee Simple Estate subject for the surface and subsurface, subject to the exceptions indicated in the BIA - Title Status Report and Reservations, if any. See Outstanding Rights section below.

The subject property shall be considered as if held in “fee simple” estate, subject to existing encumbrances, liens, restrictions, etc. Any encumbrances recorded or not recorded, on the Title Status Report (“TSR”) shall be discussed in the appraisal report. See the provided ownership documents and Title Status Report (“TSR”) for specific details.” The appraiser must immediately notify the AVSO review appraiser of any indications of rights contrary to these described. This may result in amended instructions.

Outstanding Rights: A Bureau of Indian Affairs-Title Status Report will be provided. Any recorded or unrecorded documents, conditions, agreements, easements and/or encumbrances discovered must be identified and discussed in the appraisal report in relation to their impact on value. The appraiser must investigate for and promptly report additional or inaccurate encumbrances on the property to AVSO Review Appraiser.

Reservations The property owner reserves NO rights to the property

Personal Property None to be include

Physical Access N/A

Larger Parcel N/A

Ownership/Occupant Ownership information is included within the Title Status Report.

Tenancies N/A

Owner Contact Information All appropriate owner contact information is provided within the Appraisal Request. Contact the AVSO with any concerns specific to the site inspection of the subject property.

SECTION 2 – Appraisal Requirements & Instructions

Appraisal Standards The primary appraisal standards must be the current edition of the Uniform Standards of Professional Appraisal Practice (USPAP) as of the Effective Date of Appraisal. The Appraisal Report must be presented in a narrative style appraisal report format and more specifically must

AVSO Statement of Work Page 3 of 10 comply with USPAP SR2-2(a). The Appraisal must also be compliant with any supplemental requirements contained in this SOW. A Restricted Appraisal Report is not allowed.

Market Value "The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.” (The Appraisal of Real Estate, 15th Edition)

Effective Date of Value The Effective Date of value for this assignment is the date of the last property inspection OR date of reverification of property characteristics from a reliable third party and must be no later than 60 days prior to the submission of the completed valuation report. The AVSO Review Appraiser may approve in advance other conditions in writing when appropriate.

Extraordinary Assumptions (EA’s) If the appraiser determines Extraordinary Assumptions are necessary for the completion of the assignment, he/she must contact the AVSO Review Appraiser for prior written approval.

Hypothetical Conditions (HC’s) If the appraiser determines that Hypothetical Conditions are necessary for the completion of the assignment, he/she must contact the AVSO Review Appraiser for prior written approval.

Jurisdictional Exceptions (JE’s) None. If the appraiser decides to invoke USPAP’s Jurisdictional Exception Rule to comply with law, he/she must contact the AVSO Review Appraiser to obtain prior written approval.

Placement in Report The appraiser must clearly identify all Extraordinary Assumptions, Hypothetical Conditions, and Jurisdictional Exceptions wherever the final value conclusion is stated. These must also be communicated with any General Assumptions and Limiting Conditions.

Property Inspection The appraiser must personally inspect the subject property and verify all market data utilized in the subject value conclusions unless the AVSO Review Appraiser has approved other conditions in writing.

Pre-Work Meeting The appraiser may be required to attend a pre-work meeting with the assigned AVSO Review Appraiser. The AVSO Review Appraiser will coordinate the date, time & place of the meeting. The Appraiser should contact the identified AVSO Review Appraiser to setup a pre-work meeting at the beginning of the appraisal process. The purpose of the pre-work meeting will be to clarify any issues pertaining to the scope of work, appraisal report requirements, and other concerns specific to the appraisal assignment. The meeting can be either by teleconference or at the AVSO Alaska Regional field office in Anchorage, Alaska.

AVSO Statement of Work Page 4 of 10

Controversies/Issues The Appraiser should immediately notify the identified AVSO Region Review Appraiser if issues are identified during the course of the assignment, including improper legal descriptions, trespass issues or possible environmental issues. Conflicts and/or controversies discovered by the Appraiser in the course of the project shall be reported to the AVSO Review Appraiser, in writing within five (5) working days from discovery. The Appraiser is not required to resolve title or possession conflicts but is required to report facts and professional opinions that may be relevant to the final value estimate.

Legal Instructions None.

Special Appraisal Instructions

1. Even though communication is encouraged with the property owner and the client agency, only the assigned AVSO Review Appraiser or Supervisory Regional Lead Appraiser can modify appraisal instructions (in writing). The Appraiser may not accept any changes or additions from any source other than by modification to the contract/purchase order from the Contracting Officer. The identified AVSO Review Appraiser shall be contacted if a request for change occurs at the job site location.

2. The appraiser will not communicate assignment results to any party except AVSO-Alaska unless authorized to do so in writing by AVSO. The Appraiser agrees that his/her reports and conclusions are confidential information of the U.S. Government and that he/she will not disclose their conclusions, in whole or in part, or reveal the reports to any persons whatsoever, other than the client, BIA or other Intended Users listed in the Statement of Work. The client holds the appraiser responsible for the appraiser-client relationship regarding confidential information. The client refers the appraiser to the Confidentiality section of Ethics Rule in the Uniform Standards of Professional Appraisal Practice

3. Any communication (verbal or written) with the Client Agency Realty Contact shall include the assigned AVSO Review Appraiser.

General Appraisal Requirements & Instructions

1. The appraiser must hold a valid license as a Certified General Appraiser in good standing for the state of Alaska. Temporary/Courtesy licenses will not be acceptable.

2. Experience: Appraiser shall have experience and geographic competency in appraising properties in Alaska similar to the subject(s) and experience with the requirements, appraisal principles and procedures in USPAP. Specifically, the Appraiser shall have previous experience in the subject’s market area.

3. Court Testimony: The Appraiser agrees to provide his/her services if called upon to give testimony or be in attendance in United States Court on behalf of the Government. Prior arrangements will be made with the appraiser for such services if it is determined that such services will be needed. Any proposals submitted for this proposed contract are not to include estimated costs for court appearances.

4. Confidential Information: The Appraiser agrees that his/her reports and conclusions are confidential information of the U.S. Government and that he/she will not disclose their

AVSO Statement of Work Page 5 of 10 conclusions, in whole or in part, or reveal the reports to any persons whatsoever, other than the client, and the BIA. The client holds the appraiser responsible for the appraiser-client relationship regarding confidential information. The client refers the appraiser to the Confidentiality section of Ethics Rule in the Uniform Standards of Professional Appraisal Practice.

5. All work shall be performed by, or under the direct supervision of, an Alaska State Certified

General Real Estate Appraiser. Direct supervision means the Alaska State Certified General Appraiser will be on-site to supervise, aid in analyzing and writing of the three approaches to value and perform the inspection of the subject and comparable sales. All work performed by others shall be reviewed, approved and signed by the Certified Appraiser prior to submission of the appraisal report. Each person contributing significant professional expertise will sign and attach a certification to the report of their contribution and qualifications and a copy of their Alaska State Certified General Real Estate Appraiser License. The Appraiser will interpret and reconcile the estimates of value stating the reason(s) why one or more of the conclusions reached are the best indications of a single final opinion of value. A value range is not acceptable, unless otherwise required by the Statement of Work.

6. Scope of Work Rule: The USPAP Scope of Work Rule states an appraiser’s scope of work must be sufficient to produce a credible assignment for the type of appraisal requested. The burden of proof is on the Appraiser. The Appraiser will fully disclose and justify within the appraisal report the decision to exclude any information or procedure that may appear relevant to the client, intended users, and reviewer. Compelling reasons shall be included in support of the scope of work decision. Gathering of factual information will be conducted with sufficient diligence to ensure market data having a material or significant effect on resulting opinions are discovered with due diligence to confirm market data. Data will be analyzed with sufficient care to avoid errors that could have significant effect on resulting opinions and conclusions.

7. Each report shall adhere to USPAP Standards 1 and 2 and must be labeled as an Appraisal

Report on the title page and the letter of transmittal. Restricted reports are not acceptable.

The appraisal report(s) identified with this document are reviewed in accordance with the Statement of Work and USPAP Standards 1 and 2. The Appraiser shall deliver the appraisal reports to the AVSO Alaska Regional Office identified in this document.

8. A thorough detailed analysis and summary explanation will be given to: subject property description; rationale and market factors used to determine highest and best use; adjustments to sale data will be market derived and each will be discussed/explained/illustrated/justified, using sale pairing or other recognized methods to derive adjustments for: time, location, size, access, water frontage, utilities, topography, vegetation, improvements, aesthetics, hazards or detriments, scenic and/or other recognized elements of comparison, in comparison to the subject; comparability, similarities / differences. The analysis will include complete reconciliation and correlation of approaches to value. Each appraisal will reflect prevailing current market conditions and will be performed based upon previous transactions from the competitive market area.

9. All three approaches to value, the Cost Approach, Income Approach, and Sales Comparison

Approach, shall be analyzed, developed, and reported in the report, as applicable to the assignment. If an approach to Value cannot be developed, the appraiser shall explain why it cannot be used or is not applicable in the assignment. All details and data adjustments, as well as development procedures used for the adjustments made, will be shown in the body of the report in sufficient detail that the reader/user/reviewer can adequately understand the

AVSO Statement of Work Page 6 of 10 report in detail that is not misleading, and results in a credible report. The opinion of value will be determined and supported by comparable sales that result in a reasonable credible analysis and conclusion. The comparable sales should have a highest and best use the same as the subject property. The appraiser will discuss the purpose and reason for the adjustments in the report.

10. The Appraiser shall verify as best as possible the legal descriptions with the survey map(s) and TSR, which are attached to this SOW. Any discrepancies identified in the legal description(s) will be reported immediately to the identified AVSO Review Appraiser to obtain clarification prior to proceeding with the assignment.

11. Reports shall include a three-year history of the use and occupancy of the subject property.

If any of the information cannot be determined, then the appraiser shall explain why and report the existing facts. Also include a ten-year record of all sales, and if the information is available, then any offers to buy or sell the property being appraised. If no sale of the property has occurred in the past ten years, then the appraiser shall report the last sale of the property, regardless of the date. Report the rental history of the subject property, for at least the past three years, or explain the reasons the information cannot be obtained.

12. Reports shall include a copy of the Appraiser’s State of Alaska Certified General Appraiser

License, statement of qualification detailing his/her appraisal education and experience with similar properties to the subject properties. Temporary/Courtesy Licenses are NOT acceptable.

13. Reports shall include a signed certification consistent with USPAP Standard Rule 2-3.

14. The Appraiser is required to conduct and use due diligence in market research in gathering, collecting, and verifying sales information for comparables in the subjects’ market areas, at the local borough or state courthouse(s) deed records, on or near the subject property, including areas outside and adjacent to the boundaries that would be considered within the market neighborhood. The opinion of value will be supported by recent sales in the general market of fee lands and Native Allotments (restricted fee).

15. Written sale sheets will be required in each report for all comparables utilized. The sales sheets will address/discuss the following as of the sale date:

• Grantor and grantee

• Sale date

• Sale price

• Terms of sale

• Buyer/seller motivation

• Exposure/marketing time

• Legal description and size

• Type of instrument and reference of the deed by recording district, including book & page or document number

• Assessor’s parcel number and taxes (if applicable)

• Present use

• Highest and best use

• Re-sale information if applicable

• Location (latitude & longitude in DMS) and relevant area/neighborhood information

• Legal and physical access

AVSO Statement of Work Page 7 of 10

• Utilities availability to the property with estimated distance & direction & cost to obtain if applicable

• Identify water source, system or project, costs and rights (if applicable)

• Topography

• Water frontage: quantity and quality (if applicable)

• Zoning and other land use restrictions, e.g. Easements and encroachments

• Aesthetics

• Hazards or detriments

• Complete description of site or land improvements (wells, septics, fences, corrals, ponds, reservoirs, terraces, driveways, utility connections, roads, etc.) If applicable and estimated contribution of each improvement, if applicable

• Complete description of structures or buildings (items not considered site or land improvements), if applicable and estimated contribution of each structure or building, if applicable

• Non-fee contributions (leases, other)

• Applicable rental information and history

• Capitalization rate to be derived, illustrated, and fully explained by use of estimated or actual income/expenses, if applicable.

• Rates of return to be derived and fully explained, if applicable

• Sale sheets shall include a brief narrative description of the sale property

• Copies of deeds

• Photographs of the property and description, and the date of photograph (no “thumbnail” photographs may be included, the recommended size for photographs is 3” x 5”).

• Plot map or sketch of each comparable property

• Comparable sales map showing the relative location of the comparable sales to the subject property

• AVSO-Alaska Region sales database index number (if applicable).

16. Each sale will be confirmed and supported by the borough/municipality records and assessor data if applicable, (showing acres and/or improvements). Sale details should be independently substantiated with knowledgeable parties. While sources such as selling agent, buyer’s agent, lender, attorney, appraiser, and title company are allowed, verifications with the buyer or seller are preferred. Source of sale data confirmation will be disclosed and identified with date verified, by whom and contact information. Distance and direction of a known community or town will be listed. Market sources may be supported, but not replaced by data published by federal, state or local agencies.

17. The elements or features of comparison and adjustments made shall be reliable, market extracted and supported by verified sales information. Quantitative analysis, when available through techniques such as paired sales or re-sales, etc. is required in each report. If the quantitative adjustments cannot be applied because the adjustments will not result in a credible report, then the qualitative analysis technique may be utilized. An adjustment based upon a statement such as “based upon my experience” is inadequate. Statistical Analysis or regression may be used only in support of the quantitative technique.

18. The Appraiser shall furnish and be responsible for payment of all labor, materials, transportation, equipment, tools, operating supplies, and incidentals to complete the work as specified. All work shall be performed by the qualified principal appraiser of this contract. The principal Appraiser shall not sub-contract or re-assign the appraisal(s) to another appraiser.

AVSO Statement of Work Page 8 of 10

19. This report shall adhere to USPAP Standards.

20. It is required that reports include photographs of the subject property; date the photograph was taken and by whom, and description of the photograph (subject property) No “thumbnail” photographs may be included and the recommended size for photographs is at least 3” x 5”, delineated maps and color photographs with North arrow indication and photographer location of the subject and comparable sales. Maps recommended in each report include: (1) plat or area map of the comparable sales with sections and townships identified, (2) topographic including subject and adjacent sections, (3) aerial, (4) one single map identifying all comparable sales and the subject property, and (5) other illustrations or maps as needed to identify or clarify each property’s physical elements and condition.

21. It is required that each report page should have the following header and footer:

Illustrated: Header & Footer [Header] AVSO #23-087/AVIS #00215051

[Footer] Page # of #

22. The AVSO Statement of Work, other assignment instructions and engagement letter must be included within the Addenda to the appraisal report. The BIA Appraisal Request Form should be the final page of the Appraisal Report.

23. The appraiser must appraise the subject property in its “As Is” condition unless authorized in writing by the AVSO Review Appraiser to do otherwise.

24. The appraisal report will be reviewed for compliance with the terms of this Statement of Work

(including all cited standards). Any findings of inadequacy will require clarification and/or correction.

25. The appraiser shall consider the appraisal report and all DOI internal documents furnished to the appraiser to be confidential. Refer all requests for information concerning the appraisal to the AVSO Review Appraiser.

26. AVSO will not normally accept custody of confidential information. Should appraiser find it necessary to rely on confidential information, he/she will contact the AVSO Review Appraiser for instructions. The Review Appraiser will view the information and provide further instruction to the appraiser regarding handling and storage of the confidential information.

27. While the public is not an intended user of the appraisal report, the Freedom of Information

Act (FOIA) and Agency policy may result in the release of all or part of the appraisal report to others.

28. If including any proprietary information in the appraisal, appraiser must gain concurrence from

AVSO Review Appraiser and deliver the proprietary information in a separate binder.

29. The appraiser must disclose if he/she has performed any services regarding the subject property within the three prior years

AVSO Statement of Work Page 10 of 10

Provided Subject Property Exhibits

The following Subject Property Exhibits will be provided as part of the Statement of Work:

1. Appraisal Request Package from BIA Alaska Region, Service Provider, or Designated 638

Representative

2. BIA-Title Status Report (TSR)

3. Maps

4. AVSO AK. Region appraisal work file notes & correspondence if applicable.

Deliverable/Task Schedule

REQUIRED DELIVERABLES DELIVERY DATE

Pre-Work Meeting *TBD

(In person at AVSO office or via telephone).

Initial Appraisal Report 120 days after Award Submit on or before the end of assignment Period of Performance date: Due date of the appraisal may be in terms of number of days or a specific date as agreed upon between the non-Federal party and the appraiser. One (1) Report to be submitted as a signed password protected encrypted pdf file.

Review Period & Comments Provided to Appraiser

30 days after the submission of the Appraisal.

Final Appraisal Report 15 days after the appraisal review and acceptance, the final edition as a encrypted pdf file must be submitted to the AVSO Review Appraiser.