To: Board of Supervisors
From: Assessor
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Agreement with Harold W. Bertholf, Inc. in the Amount of $42,500 for Petroleum Property Appraisal Services
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the agreement with Harold W. Bertholf, Inc. in the amount of $42,500 for Petroleum Property Appraisal Services for 2025 and 2026 and authorize the Assessor to execute the agreement.
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
Humboldt County currently has 58 gas wells that require valuation each year. The appraisal of these specialty properties requires a great deal of training and expertise. Humboldt County has been contracting with the Bertholf firm since 1977 for petroleum property appraisal. The county is one of seven California counties currently using the Bertholf firm services of professional petroleum engineers/geologists to appraise the gas wells. There are no other contractors that provide geothermal valuation for California counties for assessment purposes. The current agreement will expire December 31, 2024. In order to continue the appraisal of these properties for the yearly assessment rolls, it is necessary to enter into a new agreement for future services.
SOURCE OF FUNDING:
General Fund, Assessor (1100-113)
FINANCIAL IMPACT:
*Projected amounts are estimates and are subject to change.
|
Funding Sources (1100, 113) |
2025 |
2026 |
|
Annual Tax Roll |
$21,000 |
$21,500 |
|
Auxiliary Work |
|
|
|
Engineer/Geologist |
$275/hour |
$285/hour |
|
Technician |
$200/hour |
$205/hour |
|
Support Staff |
$92/hour |
$92/hour |
|
Total Auxiliary Work not to Exceed |
$15,900 |
$16,200 |
|
Supplemental Tax Roll |
|
|
|
Engineer/Geologist |
$275/hour |
$285/hour |
|
Technician |
$200/hour |
$205/hour |
|
Support Staff |
$92/hour |
$92/hour |
|
Total Supplemental Work not to Exceed |
$5,300 |
$5,400 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
The annual cost of this agreement in the amount of $21,000 has been included in the Fiscal Year (FY) 2024-25 budget in Fund 1100, Budget Unit 113 - Assessor. Additionally, the costs will be included in the Assessor’s FY 2025-26 budget.
Supplemental and auxiliary work are not always needed annually but are calculated into the budget as a contingency should the need arise. Supplemental work could include change in ownership, newly drilled wells, and abandoned wells. Auxiliary work could include any needed work outside of the normal annual tax roll or supplemental work and would need to be approved by the Assessor.
STAFFING IMPACT:
There will not be any impact on current staffing.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose to not approve this agreement. That is not recommended as that would require appraisal of these properties by staff members that do not have the specialized training needed to accurately value them.
ATTACHMENTS:
1. Agreement for Petroleum Property Appraisal Services
2. Cost of Services
PREVIOUS ACTION/REFERRAL:
Meeting of: 12/7/2021
File No.: 21-1728