ine Capitai GON2  AGENDA JOINTMEETING OF THE GONZALES CITY COUNCILAND GONZALES SUCCESSOR. AGENCY CITYCOUNCIL CHAMBERS - 117 FOURTH STREET GONZALES, CA 93926 MONDAY, OCTOBER 21, 2024 6:00 P.M.  Onterey  CALLTOORDER PLEDGE OF ALLEGIANCE 1. ROLL CALL-  CiyCound/Sucessor: Agency Orozco, Mayor/Chair. Jose L. Rios  Mayor Pro Tem/Vice Chair Scott Funk, Counci/Agency Member Liz Silva, Counci/Agency Member Lorraine Worthy, Counci/Agency Member Maria  Successor Agency Item PUBLICNOTICE  This meetingi is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at tps/ABOwcpzcomus//87020265943 or call 1 (669) 900-6833 and use Meeting ID: 87020263943. If you wish to make either a general public comment or to comment on a specific agenda item, please If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting  use the Raise Handi function. You will be allowed three minutes for your comments.  tot the City Clerk at vctenedgonzlescaus  PRESENTATIONS 2. 3. 4.  Introduction of Gonzales Youth Council Members  Retail Report for Gonzales BUSINESS FROM THEI PUBLIC  Business from the Public not on the Agenda; any member of the Public may address the Counci/Agency for a period not to exceed three minutes on any subject not on the Agenda. The  Counci/Agency will listen to all communications but mayt take no action.  Any writing or documents providedt toar majority oft the City Councilr regarding any item ont this agenda willl be made available for public  inspection at City Hall located at 147Fourth Street, Gonzales, California, during normal business hours.  Page 1of3  JOINT CC&SA Agenda 10-21-2024    CONSENTAGENDA  All matters listed under the Consent Agenda are considered routine by the City Council and willl bea adopted by one action oft the Council unless any Council Member has a question or wishes tor make a: statement or discuss ani item. Int that event, Approve the. Joint City Counci/Successor Agency/Public Financing Authority Regular Meeting  the Mayor willr remove thei item from the Consent Calendar for separate consideration.  * 5. 6. 7. 8. 9.  October 7, 2024 Minutes City Manager's Report  Approve City Accounts Payable Warrants #50912-50983 Community Development Department. Activity Report Community Engagement & Recreation Departments. Activity Report  10. Fire Department. Activity Report 11. Police Department. Activity Report  12. Public' Works/City Engineer Department Activity Report  13. Consider Approval of Resolution No. 2024-63, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Execute Easement Documents and Right-of-Entries Agreements for the Industrial Wastewater Pipeline Project for an Amount not to Exceed  $250,000 REGULARAGENDA  14. Possible New Regulations Concerning Encampments on Public Property  a) b) c) d)  Staff Report Public Comment Council Discussion Council Action  Staff Recommended, Action-Provide direction to staff with guidance on the preparation of desired regulations on encampments on public propertyi in the City  15. Report on Parking District Formation  a) b) c) d)  Staff Report Public Comment Council Discussion Council Action  Staff Recommended. Action-Provide direction to staff on whether to move forward with preparation of an ordinance facilitating the establishment of parking districts  GONZALESYOUTHE COUNCIL UPDATES 16. Oral Communications BUSINESS FROM CITY COUNCIL 17. City Council Board/Committee Reports  a. b. C.  League of California Cities Monterey Bay Division Association of Monterey Bay Area Governments  Monterey Salinas Transit  18. Oral Communications  Any writing or documents providedt toar majority oft the City Councilr regarding any item ont this agenda willl be made available for public  inspection at City Hall located at 147Fourth Street, Gonzales, California, during normal business hours.  Page2of3  JOINT CC&SA Agenda 10-21-2024    BUSINESS FROM CITYMANAGER 19. Oral Communications ADJOURNMENT  In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102- 35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information. The recordings are Mary Villegas, Deputy City Clerk of the City of Gonzales, do hereby certify that a copy of the foregoing Joint City Counci/Successor. Agency Regular Meeting Agenda was posted at City Hall, Council Chambers,  available online.  and on the City'swebsite by Thursday, October 17,2024, at 5:00 p.m.  10/17/24 Date  Mary Villegas molligaa  Any writing or documents providedt toar majority oft the City Councilr regardinga any item ont this agenda willl be made available for public  inspection at City Hall located at 147Fourth Street, Gonzales, California, during normal business hours.  Page 3of3  JOINT CC&SA/ Agenda 10-21-2024    AGENDA ITEM 3  MONTEREY COUNTY BUSINESS COUNCIL  PRESENTATION TO GONZALES  RETAIL MARKET ASSESSMENT  October 2024  N EI Segundo, CA  TEL: 424-297-1070 URLwwwlomont.com  Kosmont Retail NOW!B  kosmont  Packet Pg. 4    BACKGROUND  Kosmont Companies ("Kosmont") has been retained to assist the Monterey County Business Council ("MCBC" or "Client") in connection with a Retail Market Assessment ("Assessment") utilizing its Kosmont Retail NOW!B platform. Client would like to develop an understanding of the local economy, market conditions / trends, and the commercial / retail areas of King City, Soledad, Greenfield, and Gonzales ("Cities") in the South Monterey County Region ("Region"), to inform plans for developing a comprehensive approach to retail amongst the four Cities. Main goals of the Assessment are to understand the local retail environment, increase local sales and transient occupancy taxes, and better meet the  retail needs of the Region's communities.  Kosmont is a nationaly-recognized real estate and economics advisory firm serving hundreds of public and private sector  clients for 38 years. Kosmont's experience covers a range of services as follows:  Market and Feasibility Analyses  Fiscal Impact and Economic Benefit Studies  Economic Development Strategies and Implementation Business/Retailer and Developer Recruitment  Identification of Funding Sources and Financing Strategies Public-Private Transaction Structuring and Negotiation Assistance  kosmont  KOSMONT Packet Pg. 5    EXECUTIVE SUMMARY  The Region and Cities have seen population growth in recent decades and are poised to see  continuing population growth as housing development continues in the Cities.  While the retail market in the Region is generally stable, the Region also faces retail competition from surrounding communities / shopping centers = particularly the strong regional retail cluster in Salinas. While vacancy generally remains low, the Cities would like to improve retail tenancy in existing spaces (including spaces in existing shopping centers as well as older retail spaces in historic downtown main street areas) and would also like to stimulate additional retail development - particularly along the US-101 corridor - that can both serve local residents as well as attract visitors traveling through the  Region.  The retail market is being shaped by modern consumer forces. Consumer need for convenience including omni-channel shopping options (i.e., e-commerce, buy online pick up in store (BOPIS), mobile technologies) and desire for curated / engaging retail experience is reshaping demand  for brick-and-mortar retail, as well as driving new demand and redevelopment.  kosmont  KOSMONT Packet Pg. 6    EXECUTIVE SUMMARY (CONT'D)  Each City has key Opportunity Sites = such as existing shopping centers, downtown commercial areas, and undeveloped sites along the US-101 freeway - that have some potential for retail and hospitality development. These sites are unlikely to fully develop as retail projects due to the limited size of the trade area, but some retail development is likely suited. The Cities in the region should aim for flexibility with these sites, as successful projects will likely be mixed / blended use concepts that  combine retail with high-demand uses such as residential and industrial.  At this time, new retail developments are experiencing financial feasibility challenges, due to high land values (driven by residential and industrial demand), high construction costs, and relatively high  interest rates.  Cities can explore tools to motivate private investment, which includes programs to encourage improvements at shopping centers to add retail viability (such as façade / landscaping / signage improvements), business expansion / attraction / retention and marketing exercises, and zoning strategies / regulatory flexibility to better facilitate an additional complementary blend of uses.  k kosmont  KOSMONT Packet Pg.7    REGIONAL ASSETS  COMMUNITY ASSETS THAT CAN BE LEVERAGED FOR ECONOMIC DEVELOPMENT  Agricuitural  Natural  Cultural  Historic Downtowns Mission Soledad Los Coches Adobe  Farming/Agrbusiness Wine Country  Pinnacles National Park Salinas River / Arroyo Seco  kosmont  KOSMONT Packet Pg. 8    DEMOGRAPHIC, TAX REVENUE, AND EMPLOYMENTT  DATA SUMMARY  The Region has a population of -75,000 people and has grown -30% since the early 2000s, with additional growth expected as  new housing is developed.  Region has lower levels of bachelor degree attainment, higher Hispanic population, and lower average household incomes  compared to County averages.  Household expenditure data shows that Households within the Region have average household incomes of $92,100 and spend -$19,100 on key brick-and-mortar retail and service categories, equating to $311.7 million in annual spending in these  categories.  Taxable Retail Sales data shows -$331 million in taxable sales in 2023 from retail and food services; large business categories include Gasoline Stations, Food Service / Drinking Places, and Food I Beverage Stores. Over the past 5 years, growth has occurred in the Building Materials / Garden Equipment I Supplies Dealers, General Merchandise Stores, and Food Services /  Drinking Places categories.  Property tax, sales tax, and transient occupancy tax growth has slightly outpaced County and State baselines since 2018. Region sees a net outflow of workers, with residents commuting to Salinas, San Jose, Monterey, and other communities. Major industry sectors in the Region include Agriculture, Public Administration, Educational Services, and Healthcare I Social  Assistance.  Recent /upcoming development projects in the Region include a variety of residential projects that are likely to add over 6,000 housing units over the coming years; other commercial and hotel development is expected in the near future as well, with  several projects in the planning phase - demonstrating continued market interest in the Region.  h kosmont  KOSMONT Packet Pg. 9    RETAIL MARKET OVERVIEW  Approx. 1.4 million square feet of retail inventory in the Region, with  Gonzales 8,500 2,030 29.4 7.4% $97,400  Region 74,600 16,320 29.7 9.6% $92,100  af fairly low vacancy rate of 1.7%.  Population Households Median Age Bach. Degree + Average HH Income Retail Data Inventory SF Vacant SF Vacant % Market Rent  Annual market rents -$23 per square foot (increasing -8.2% over the  past three years).  Inventory has grown -65,500 SF since 2019 and is currently seeing slightly positive net absorption. No retail construction currently  underway in the Region.  As significant share of retail inventory is located in neighborhood and strip centers that generally serve the local market (grocery, restaurants, shops and services). Major retail tenants include several supermarkets, hardware stores, drug stores, dollar /v variety / thrift  216,600 0 0% $23.39 2,200  1,389,000 23,799 1.7% $22.72 6,600 65,450 4.9% Pg.  stores, automotive supplies, and restaurants.  Mobile visitor data shows that US-101 sees significant daily traffic, with peaks during commute hours and weekends, offering potential for capturing traveler spending. Local shopping centers show stable visitation, with anchor retailers performing at or near average levels.  Net Absorption SF (12mo) Inventory Growth SF (since 2018)  0%  Source: CoStar, ESRI, Placer.ai (Accessed July I August 2024)  KOSMONT Packet 10  kosmont    STRENGTIHS, WEAKNESSES, OPPORTUNITIES, THREATS  Strengths  Weaknesses  Opportunities  Threats  Small Market Size  Retail Development  Strategic Location  Economic Fluctuations  Competition From Larger Cities  Tourism Growth  Market Voids  E-commerce Competition  Infrastructure  Public-Private Partnerships  Proximity to Attractions Community Character  Retailer Expansion Criteria  Development Costs  Regulatory Flexibility  Property Owners  kosmont  KOSMONT Packet Pg. 11    ECONOMIC CHALLENGES:  RETAIL DEVELOPMENT FEASIBILITY  The commercial real estate market - particularly the retail and office markets -i is facing a number of significant challenges due to economic, financial and  Rising Costs: CPI-U and CA Construction Cost Index, Change from 2012 Baseline  80% 70% 60% 50% 40% 30% 20% 10% 0%  market conditions:  Inflation and construction costs  Interest rates are relatively high and financial  markets are responding  E-commerce  Work-from-home  : of  California Construction Cost Index CPI-U  Source: FRED, CA Dept. of General Services  kosmont  KOSMONTO Packet Pg. 12    Gabilan  COMPETITION  Salinas Retail Cluster  Marin Pacific Groy  CHALLENGES:  Range San o Benito  THE BARBELL  sapa  EFFECT  Monterey / Sand City Retail Clusters  Greentield  King  The Region is flanked by major retail clusters; this presents a competitive  Mont  Park  Limekin Stafe.Park Fort Hunter Liggett  challenge  to  retail  development in the Region.  Paso Robles Retail Cluster  Camp Roberts  Source: Placerai, CoStar  Note: Cluster data only representative of select kosmont shopping center areas and not all retail properties  KOSMONT C4 Packet Pg. 13    CHALLENGES & OPPORTUNITIES  POPULATION - MARKET SIZE & HOUSING DEVELOPMENT  The region's small, rural market size limits the potential for substantial retail development, despite 30% population growth over the past 25  Challenge  years.  Significant housing projects in the pipeline can drive further population growth, which in turn can support local retail.  Opportunity  Encourage blended-use developments on large sites near US-101, incorporating residential units alongside retail space to maximize  Recommendation  financial viability and meet future demand.  kosmont  KOSMONT Cq Packet Pg. 14    CHALLENGES & OPPORTUNITIES  RETAIL LEAKAGE AND COMPETITIVE ENVIRONMENT  Significant retail leakage occurs as local residents travel to larger retail clusters in Salinas for goods and services not available within the  Challenge  Region.  There is potential to capture some of this leakage by attracting new retail development in underserved/e expanding categories.  Opportunity  Conduct outreach to developers and retailers to explore opportunities for capturing this local spending, focusing on retail  Recommendation  formats suitable for the Region's market.  kosmont  KOSMONT Cq Packet Pg. 15    CHALLENGES & OPPORTUNITIES  US-101 TRAVELERS & TOURISM  Region sees local Ir regional / visitor traffic along US-101 corridor, but much of this traffic is related to commuter travel or visitors passing  Challenge  through.  The region can capture more sales by developing freeway-adjacent retail and hospitality services that attract and cater to travelers.  Opportunity  Focus on marketing / events that draw tourists to local destinations and local retail districts, while also leveraging freeway-adjacent opportunity sites for traveler-oriented retail development.  Recommendation  kosmont  KOSMONT Cq Packet Pg. 16    RETAIL TENANT PRIORITIES  Potential commercial developers / tenants have a variety of factors that they prioritize  when evaluating new development projects:  - Demand / Trade Area Thresholds  Anchor Tenants  - Traffic / Visibility  Site Accessibility / Circulation  Consumer Convenience  Competitive Retail Rates  kosmont  KOSMONT CC Packet Pg. 17    GONZALES  OPPORTUNITY OVERVIEW  Downtown Gonzales is a walkable, historic downtown area with charming character and local restaurants / shops, with some opportunity for enhanced activity through streetscape I façade improvements and business enhancement.  Southern Onramp Site is a large vacant site with very good accessibility / visibility from the US-101 freeway, and as housing / commercial development continues in the surrounding area may be well suited for blended use project that includes commercial (travel center, freeway-oriented retail), hotel, and residential.  Vacant Commercial Buildings are older structures located in the mixed-use commercial core. Re-tenanting may be challenging given the age/condition of structures, but the vacant spaces could be used to introduce new retail / dining options or be opportunities for redevelopment.  - kosmont  KOSMONT Cq Packet Pg. 18    MPLEMENTATION TOOLS & STRATEGIES  Communities can use a variety of strategies and tools to support existing businesses and attract  new development:  Business Expansion, Attraction, and Retention Activities Programs and Policies to Support Local Businesses Property Owner Collaboration & Project Shaping  Infrastructure Improvements  Building Partnerships and Outreach  Events & Activities  Marketing  Community Engagement  kosmont  KOSMONT CC Packet Pg. 19    MONTEREY COUNTY BUSINESS COUNCIL  PRESENTATION TO GONZALES  RETAIL MARKET ASSESSMENT  October 2024  N EI Segundo, CA  TEL: 424-297-1070 URLwwwlomont.com  Kosmont Retail NOW!B  kosmont  Packet Pg. 20    AGENDA ITEM 5  ine Capiay GON2  LES, CALIF Onterey MINUTES JOINT MEETING OF THE GONZALES CITY COUNCIL, SUCCESSOR AGENCY, AND GONZALES PUBLIC: FINANCING AUTHORITY MONDAX,OCTOBER 7, 2024  6:001 P.M.  CALLTOORDER  The meeting was called to order at 6:00 PM by Mayor/Chair Jose L. Rios.  PLEDGE OF ALLEGIANCE The flag salute was recited by all present.  1. ROLL CALL Attendee Name Jose L. Rios Scott Funk Liz Silva Lorraine Worthy Maria Orozco YOUTH COMMISSIONERS  Title  Status Present Excused Present Present Present  Mayor/Chair Mayor Pro Tem/Vice Chair Council/Agency Member Council/Agency Member Council/Agency Member  Excused. Absence: Valeria Cardenas and Emily Mendez.  STAFFI PRESENT  City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Community Development Director' Taven Kinson Brown, Finance Director Mike Howard (via zoom), Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Administrative Assistant II Esthela Palmerin, Public Works Director/City Engineer Patrick Dobbins, Fire Chief. Jason Muscio, and Police Chief Keith Wise.  Successor Agency Item Financing Authority Item  Page 1of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 21    PUBLICI NOTICE  This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate inj person or online via zoom at htps/uxOéwebzrom.u/87020263943 or call 1 (669)900-6833 and use. Meeting ID: 8702026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments. If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting to  the City Clerk at pcterkecigomalscaus BUSINESS FROM' THEI PUBLIC  2.  Business from the Public not on the Agenda; any member oft the Public may address the Council for aj period not to exceed three minutes on any subject not on the Agenda. The Council will listen Sandra Ramirez expressed her opposition to the proposed park discussed at the last meeting and said she lived closed to the proposed project. She explained the reasons and elaborated on her concerns, and said she also talked about some of the neighbors who were not tool happy about it. Daniel Gutierrez talked about residents of the CHISPA neighborhood who would take their dogs to the toddler park without leashes and not pick up after them. He asked the City ifit was possible to communicate with CHISPA about making sure their dogs are on leashes before something happens and to not use thej park as a bathroom or at least to clean up after their dogs.  to all communications, but may take no action.  CONSENT AGENDA  *3. 4. 5. * 6. 7. 8.  Approve the Joint City Council, Successor Agency, Successor Housing Agency, Electric Authority, and Municipal Electric Utility Boards - Regular Meeting September 16, 2024  Minutes  Approve City Accounts Payable Warrants #50808-50911 Consider Closure of City Offices for the Winter Holidays Accept the 2024 Annual Public Financing Authority Report  Approve and Authorize the City Manager to Sign a Property Access Agreement Between the City of Gonzales and the Resource Conservation District of Monterey County for the Establishment, Consider Renewal of a Three-Year Lease Agreement Between the City of Gonzales and the Mexican American Opportunity Foundation for the Property Located at 225 Elko Street with an Option to Extend thel Lease at a New Monthly Rate for an Additional Two-Year' Term, Following Consider Approval and Authorize the City Manager to Sign a Memorandum of Understanding Between the City of Gonzales and Hartnell College Foundation for Support and Engagement in the Youth Ambassador Pilot Program - Student Opportunity and Achievement Rising Across the Salinas Valley (S.O.A.R); and Accept a $10,000 Grant to Offset Participation Costs 10. Consider Approval of Resolution No. 2024-59, A Resolution of the City Council of the City of Gonzales Authorizing Task Order #3 Under a Master Service Agreement with MNS Engineers for Environmental Monitoring Services During Construction of the Industrial Wastewater System  Access, and Upkeep of al Pollinator Garden at the Community Garden Site  Expiration of the Initial Term (October 31, ,2027)  9.  Page 2of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 22    11. Consider Approval of Resolution No. 2024-60, A Resolution of the City Council of the City of Gonzales, Authorizing the City Manager to Execute Agreements and/or Proceed with Services from Various Consultants to Secure an Interim Loan for Construction of the Industrial 12. Consider Approval of Resolution No. 2024-61, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager or Public Works Director to Submit a Financial Assistance Application to the State Water Resources Control Board for the Planning and Design Council Member Silva pulled warrants for further clarification. Warrants #50846 and 50891 she wasn't sure if they were duplicate payments and if that was the only cost or ift there will be more. Public Works Director Dobbins responded they were not duplications. Those were separate appraisals efforts for the Industrial Wastewater Project, and there would potentially be more, and they were for the preparation of the appraisals and working through the acquisition of the She also asked about warrant #50877 for $166.60 for Santiago Melgoza for out of pocket lift Police Chief Wise responded that was for the Specialist Drone Training we sent him to down in Riverside, and the venue was not at the hotel he was staying sO that was a ride to expense from and to the venues the training was held at and those were all out of pocket expenses he incurred  Wastewater System  of the Wastewater Treatment Plant Improvement Project  easements.  rides and was wondering what that was.  that the City reimbursed him for.  Council Member Silva asked if he wasn't given a stipend. Police Chief Wise responded yes, for meals only.  Council Member Silva also asked about warrant #50909 to the Monterey Bay Area Self, in the amount of $16,911.55 for a claim under the explanation, and didn't know if there was anything City Manager Gil responded it was for our selfi insurance for MBASIA but wanted to confirm that Council Member Silva also asked about warrant #50903 in the amount of $5,000 to United Way City Manager Gil responded yes, that was an annual fee that all the cities and entities in the Council Member Silva said it would have helped if it had said annual 211 services and she Council Member Worthy asked when the new financial system was going tol be ready. Finance Director Howard, via zoom, explained staff went live last Monday on what we called financials, the general ledger went live last week, SO this is our second week of going live. He said staff will run payroll and accounts payable starting this week, then next week would be the wrap up. He informed that staff will go live with utility billing and cash receiving in December.  after that. just to be sure.  for 211 services, and asked if that was an annual fee. County paid to bej part of those services. wouldn't ask the question.  Page 3of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 23    And then with business license and accounts receivable between now until February, and that will City Manage Gil asked Finance Director Howard when the new check run will show the updates. Finance Director Howard informed it would be at the next meeting. He said staff hadn't ran any checks since the last check run, sO the batch they run this week will be going live in the system. He also confirmed Council Member Silva's question regarding the MBASIA warrant. He explained that one was for multiple claims that the City needed to pay, and it was about 15 different claims that made up the $16,000 amount. He said that was the one thing with this system  complete our suite of the financial system.  that didn't break down the information.  RESULT: MOVER: AYES: EXCUSED: REGULAR. AGENDA  APPROVED [UNANIMOUS) Consent Agenda Items 3-12 Josel L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco  Liz Silva, Council/Agency Member  SECONDER: Maria Orozco, Council/Agency Member  Scott Funk  13. Consider Approval of a 25-Year Lease Agreement with Legacy Sign Company for the Construction and Use of an Offsite Advertising Billboard Sign on a City-Owned 6+acre Parcel Staff Report: Community Development Director Kinison Brown presented the staff report. He noted that City Attorney Rodriguez suggested the need for a resolution which includes actions relative to the Surplus Land Act, sO staff prepared Resolution No. 2024-62, which was distributed The Resolution for consideration under this item was Resolution No. 2024-62, Al Resolution of the City Council of the City of Gonzales Approving a Lease Agreement with Legacy Sign Company for the Construction and Use of an Offsite. Advertising Billboard Sign on a City-Owned  Adjacent to Highway 101 on. Assessor's Parcel Number 020-201-022-000  to the Council this evening.  6+Acre Parcel Adjacent tol Highway 101. Public Comment: There was none. Council Discussion: None. RESULT: MOVER: AYES: EXCUSED:  APPROVED AS AMENDED [UNANIMOUS) Resolution No. 2024-62  Lorraine Worthy, Council/Agency Member Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco  SECONDER: Liz Silva, Council/Agency Member  Scott Funk  14. Possible New Regulations Concerning Encampments on Public Property  City Attorney Rodriquez recommended that this item be carried over to the next meeting for a couple of reasons. The first being that the staff report referenced a number of attachments which were sample ordinances, and unfortunately, they were not distributed with the agenda sO the Council didn't have the ability to review them. Also, Mayor Pro Tem Funk who actually asked  that thei item be agendized for discussion was absent this evening.  Page 4of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 24    He mentioned that this item was about the issue of encampments, or folks who were camping out on public property and elaborated on the court's determination, but the full discussion will be continued to the next meeting where the Council would have the opportunity to look at sample Public Comment: Daniel Gutierrez asked if the definition of encampment included people living in a trailer on the street. He commented about having one in his neighborhood where several people observed people coming in and out of that trailer in the morning and nighttime, and being City Attorney Rodriquez responded encampment would be whatever the Council decided that Council Member Orozco elaborated on ai family she's currently working with which was a family of 10 including eight children and she said it was sO challenging for them to find housing and were currently living in their car. She knew this was a challenge for cities and there was nothing  ordinances and provide direction to staff.  parked there for over a year.  could basically be living on private property.  available such as family shelters in South County.  It was the Council's consensus to move this item to the next meeting.  15. Updated List of Parking Regulations  Staff Report: Public Works Director Dobbins presented the staff report.  Public Comment: Daniel Gutierrez  Council Discussion: Council Member Worthy informed about a lot of residents offering help to paint the ramps. City Manager Gil elaborated on other cities saying it hard to enforce since that would be taking al lot of parking away. Council Member Silva asked about parking permits like in Salinas. City Manager Gil informed she and the City Attorney were going to do homework on permitted parking and bring it back. Public Works Director Dobbins elaborated on permitted parking by the Vosti apartments on C Street. Council Member Orozco elaborated on many people not being in favor of permitted parking since many households had multiple cars due to grown children and families and friends visiting, and suggested a survey. Mayor Rios liked permitted parking which would be a great thing for traffic safety due to cars parked close to the curbs and  making it difficult to see.  It was the Council's consensus to direct staff to bring back ai resolution.  16. Street Maintenance Program Status Report  Staff Report: City Manager Gil and Public Works Director Dobbins presented the staff report via powerpoint presentation explaining the current conditions, unfunded needs, costs, plan, and the  next steps.  Public Comment: There was none.  Council Discussion: Council Member Worthy thanked them for the information which was: really helpful. Mayor Rios understood how expensive signage was but he rather spend the money now  and save the long run since big trucks come down Fifth Street damaging it.  The Council received the report.  Page 5of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 25    GONZALES YOUTH COUNCIL UPDATES 17. Oral Communications  No updates since the Commissioners were not present.  BUSINESS FROM CITY COUNCIL 18. City Council Board/Committee Reports  a. Transportation Agency for Monterey County  Mayor Rios reported on the Safe Routes to School project where all the south county communities participated very well; and the Assessor's Office update on the County's funds.  b. Mayor Selection Committee Salinas Valley Recycles  Mayor Rios said there was no meeting due to lack of quorum last week.  Council Member Silva announced the Highlights of the last meeting were distributed to the Council by Deputy City Clerk Villegas, announced the next meeting October 17th at 6:00pm in the Council Chambers, and the Education Center at the Johnson Canyon landfill should be City Manager Gil reported on the subcommittee meeting last week where they made a recommendation to the full committee as to who would be funded with the Community Action Grants for this fiscal year, which is scheduled for October 14th. Council Member Worthy asked if they lose the funding ift they don't use it. City Manager Gil mentioned they would honor the one that's currently approved and ask them to use it asap, but we would not  available for classes to take field trips very soon. d. Measure K Oversight Committee  continue to do that.  19. Oral Communications  Council Member Orozco said she wanted to give the information to Mr. Gutierrez but he had already left, about CHISPA contacts since three Board Members live in Gonzales. She had contacted them in the past with other issues and they were able to deal with them really quick. She also thanked the Officer who showed up to the Church Carnival and gave a little pep talk to some of the students early in the morning, and thanked everyone who attended as it was a great Council Member Silva announced the next football games' dates, times, and locations, and Homecoming on Saturday October 19th at San) Lorenzo Valley, and Senior Night on November gth Council Member Worthy thanked Council Member Silva, Sandra Castillo, Connie Arellano and Tiffany Twisselmann for helping at the community garden pulling weeds and cleaning up the area. She said it was important for all residents to help when they could. She also mentioned people had' been picking up their dog stuff lately and it was nice for all of us to work together and  success.  at Salinas High School since they were remodeling the stadium.  clean up our community.  Mayor Rios thanked staff for all their diligent work and the fine reports.  Page 6of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 26    BUSINESS FROM CITY MANAGER 20. Oral Communications  City Manager Gil informed she would be at the League of California Cities Conference from Wednesday to Friday representing our town. She announced Salinas Valley Health Fair Day Saturday, October 12th from 11:00am - 2:00pm consisting of flu clinics, produce giveaways, Zumba, etc.; Cleanup Day on October 19th at Fairview Middle School; Halloween Outdoor Movie Night on October 19th which would include a Halloween Costume Contest; and the Fall Festival/Trunk or Treat on October 26th from 4:00pm 7:00pm. She also informed there was a day scheduled for a community garden cleanup and staff would share it via social media and get the date to everyone. She also mentioned the school finally received the student banners and they will be going up any day now, and the Hometown Hero Program signs are going to be part of a ceremony most likely the Thursday before Veterans Day to Community Development Director Kinison Brown announced the free community-wide garage sale this weekend on Saturday and Sunday and staff already received 401 registrations. Mayor Rios informed he would be meeting with Congresswoman Zoe Lofgren here in Gonzales at 2:45pm, and on Thursday with Senator John Laird at 2:30pm who will be Fire Chief Muscio reported on the calls he made to three agencies regarding the smell in Gonzales and they all decided that Monterey County Environmental Health was going to be responsible for the smell. He said they were familiar with the operation where it was coming from and they were planning a site visit to that operation to see if there was anything they  honor our fallen Veterans and those whol have served.  representing our area: nowi instead of Anna Caballero.  could do on site to minimize the odor.  ADJOURNMENT RESULT: MOVER: AYES: EXCUSED:  APPROVED UNANIMOUS) Lorraine Worthy, Council Member  SECONDER: Liz Silva, Council Member  Josel L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco  Scott Funk  The meeting was adjourned at 7:21 PM.  ATTEST:  Mary Villegas, Deputy City Clerk  Page 7of7  CC/SA/FA Minutes 10-07-2024  Packet Pg. 27    AGENDA ITEM 6  Check Repor+ By Check Numb  Gonzales, CA  Date Range: 9242024-10/1120: Discount Amount Payment Amount Number Discount Amount Payable Amount  Vendor Number Vendor Name Payable# Bank Code: POOL-MECHANICS-POC5-POOL-MECHANICS BANK Payment Type: Regular 4471 09122024 PWDUES INV0000025 Invoice, SDU INV0000005 Invoice CALPERS RET INV0000015 Invoice INV0000016 Invoice INV0000017 Invoice INV0000019 Invoice INV0000020 Invoice INV0000021 Invoice INV0000022 Invoice INV0000023 Invoice INV0000024 Invoice GONZPOA INV0000018 Invoice FIREDUES INV0000007 Invoice PARS INV0000013 Invoice INV0000014 Invoice ICMA INV0000001 Invoice INV0000010 Invoice STANDARD NV0000011 Invoice CAUSA INV0000026 Invoice 4472 INV3858 1922 24-98333 256 AR036728 108 5510689404 Invoice 5510689564 Invoice 2 122504 2180  Payment Date Payment Type Payable Description 09/24/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  Payable Type DANIELA GOMEZ Invoice  Post Date  0.00 40.00 50911 0.00 40.00 0.00 285.60 50912 0.00 285.60 0.00 73.84 50913 0.00 73.84 0.00 28,718.86 50914 0.00 28.00 0.00 1,264.13 0.00 2,376.42 0.00 3,198.89 0.00 3,150.11 0.00 5,561.11 0.00 5,535.96 0.00 1,931.36 0.00 5,672.88 0.00 500.00 50916 0.00 500.00 0.00 122.40 50917 0.00 122.40 0.00 2,744.20 50918 0.00 2,689.58 0.00 54.62 0.00 5,566.01 50919 0.00 1,485.02 0.00 4,080.99 0.00 1,020.00 50920 0.00 1,020.00 0.00 292.78 50921 0.00 292.78 0.00 1,000.00 50922 0.00 1,000.00 0.00 342.50 50923 0.00 342.50 0.00 2,118.05 50924 0.00 2,118.05 0.00 216.68 50925 0.00 133.68 0.00 83.00 0.00 460.00 50926 0.00 460.00 0.00 1,781.14 50927  09/12/2024 Parent/Child: Swim! Lessons 10/11/2024 PW UNION DUES 10/11/2024 CHILD/SPOUSAL: SUPPORT 10/11/2024 PERS CITY COUNCIL 10/11/2024 PERS MISC EMPLOYEE 10/11/2024 PERSS SAFETY EMPLOYEE 10/11/2024 PERS PEPRAI MISCE EMPLOYER 10/11/2024 PERS PEPRAI MISCE EMPLOYEE 10/11/2024 PERS PEPRA SAFETY EMPLOYER 10/11/2024 PERS PEPRA SAFETYE EMPLOYEE 10/11/2024 PERS MISC EMPLOYER 10/11/2024 PERS: SAFETY EMPLOYER 10/11/2024 POA UNION DUES 10/11/2024 FIRE UNIONDUES 10/11/2024 CITIBANK-PARS CONTRACTH#86360 10/11/2024 CITIBANK-PARS CONTRACT#86390 10/11/2024 457LOANPAYMENT 10/11/2024 4571 ICMAL DEFERREDC COMP 10/11/2024 BASICUFE-EMPLOYER 10/11/2024 REVOCABLE WAGE ASSIGNMENT  CAP PROFESSIONAL EMPLOYEES AFL-CIO CASTATE DISBURSEMENT UNIT CALF PERS RETREMENTSYSTEM  GONZALES POLICE OFFICERS ASSOCIATION 10/11/2024 Regular GONZALES PROFESSIONAL FIREFIGHTERS. ASSO 10/11/2024 Regular  JOHNH HANCOCKUSA MISSIONS SQUARE  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  STANDARDI INSURANCE COMPANY WLCC dba CHECKADVANCE USA.NET  34ED, LLC Invoice A&GPUMPING, INC. Invoice Invoice AIRGAS ALL- SAFEA ALARMS Invoice AVAREZTECHNOIOGY GROUPI INC.  10/11/2024 WE-TIP 10/11/2024 Rental Charges 10/11/2024 Levelized Nat Gas Charges 10/11/2024 Propane 10/11/2024 Propane 10/11/2024 Monthly Monitoring  ABAG PUBLICLY OWNED ENERGY RESOURCES 10/11/2024 Regular  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  10/11/2024 9:54:34 PM  Page 1of6 6 Packet Pg. 28    Date Range: 09/24/2024-10/1/2024  Check Report Vendor Number Vendor Name Payable# 37503512 3893 73676 73684 73737 137 3042055 86 09192024 2830 09202024 3168 05509778714 Invoice 5509775179 Invoice 5509775606 Invoice 3805 1682962 1684571 80173085 1054 197537 4260 47583 1442 85496393 4318 045 047 3838 240744 240815 770 1945 1946 3839 10032024 889 763771 212 09302024 1821 3566-212347 Invoice 3566-214175 Credit Memo 3566-214601 Invoice 3566-214608 Invoice 3566-214748 Invoice 3566-215492 Invoice  Date Payment Payment Type Payable Description 10/11/2024 Regular  Discount Amount PaymentA Amount Number Discount Amount Payable Amount 0.00 1,781.14 0.00 7,863.72 50928 0.00 273.15 0.00 165.00 0.00 7,425.57 0.00 570.77 50929 0.00 570.77 0.00 1,238.12 50930 0.00 1,238.12 0.00 85.60 50931 0.00 85.60 0.00 109.12 50932 0.00 34.21 0.00 55.35 0.00 19.56 0.00 29,908.13 50933 0.00 22,871.10 0.00 6,893.10 0.00 143.93 0.00 62.95 50934 0.00 62.95 0.00 123.94 50935 0.00 123.94 0.00 698.78 50936 0.00 698.78 0.00 17,160.00 50937 0.00 7,020.00 0.00 10,140.00 0.00 763.58 50938 0.00 663.58 0.00 100.00 0.00 500.00 50939 0.00 100.00 0.00 400.00 0.00 150.00 50940 0.00 150.00 0.00 480.00 50941 0.00 480.00 0.00 6,359.26 50942 0.00 6,359.26 0.00 788.20 50943 0.00 544.12 0.00 -327.75 0.00 58.94 0.00 137.08 0.00 201.86 0.00 173.95 0.00 1,137.25 50944  Payable Type Invoice Invoice Invoice Invoice AMERICANSUPPIYCO. Invoice AT&T Invoice AT&T Invoice AUTOZONE! INC.  Post Date  10/11/2024 Computer Lease 10/11/2024 Loptop! Memory Upgrade 10/11/2024 Loptop Memory Upgrade 10/11/2024 Monthly Billing-Nov2 2024 10/11/2024 lanitorialSupplies 10/11/2024 Calnet 10/11/2024 Phone Services 10/11/2024 Sewer 10/11/2024 Supplies 10/11/2024 Supplies 10/11/2024 Meter Replacement 10/11/2024 Water Meter 10/11/2024 Meter Services 10/11/2024 Oil 10/11/2024 Supplies 10/11/2024 Battery 10/11/2024 Vista Lucia- August 2024 10/11/2024 Vista Lucia Annexation 10/11/2024 Pool Lights 10/11/2024 Signal Maintenance 10/11/2024 Fire- Janitorial Services 10/11/2024 Vosti. Janitorial Services 10/11/2024 Annual League ofCAC Cities 10/11/2024 Rodent Control 31- 10/11/2024 Utilitiy Bills 10/11/2024 Equipment Maint 10/11/2024 Equipment Maint. 10/11/2024 InjSealKit 10/11/2024 Door Mirror 10/11/2024 OilF Filters 10/11/2024 PDVehicle! Maint  ALVAREZT TECHNOLOGY GROUP, INC.  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  BADGER METERI INC. Invoice Invoice Invoice BANUELOSE ENTERPRISES, INC. Invoice BLACKTHORNE: SPASLLC Invoice BOUNDTREE MEDICALLLC Invoice BRENT SLAMA Invoice Invoice Invoice Invoice Invoice Invoice CARMEN GIL Invoice CASNER EXTERMINATING, INC. Invoice CITVYOFGONZALES Invoice CSKAUTO, INC.  10/11/2024 Regular  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  CAL-WESTL LIGHTING AND SIGNALI MAINTENAN 10/11/2024 Regular CARLOS ALBERTO ESQUIVEL. JACOB'S MAINTEN 10/11/2024 Regular  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  3028 10/11/2024  D&JTIRESERVICE  10/11/2024 Regular  2ofe o Page Packet Pg. 29  9:54:34 PM    Datel Range: 09/24/204-10/12024  Check Report Vendorl Number Vendor Name Payable# 15874 15892 15951 15966 2895 588475874 3139 10022024 1771 2452408-IN 25S2403-IN 4447 45595262 4360 5166 1084 91935 3274 035470/3 035560/3 035592/3 035913/3 035939/3 035970/3 035988/3 036037/3 036092/3 036093/3 036114/3 036130/3 036142/3 036162/3 036171/3 036172/3 036181/3 036210/3 036214/3 036215/3 036224/3 036298/3 225 128468 4071 37452193 1319 351672 4120 INV13108411 Invoice 3778 1479 204  Payment Date Payment Type Payable Description  Discount Amount Payment Amount Number Discount Amount Payable Amount 0.00 847.25 0.00 25.00 0.00 130.00 0.00 135.00 0.00 26,014.00 50945 0.00 26,014.00 0.00 78.00 50946 0.00 78.00 0.00 1,315.56 50947 0.00 315.56 0.00 1,000.00 0.00 317.04 50948 0.00 317.04 0.00 185.00 50949 0.00 185.00 0.00 206.13 50950 0.00 206.13 0.00 403.71 50951 0.00 15.49 0.00 4.12 0.00 10.93 0.00 13.65 0.00 67.14 0.00 6.19 0.00 22.27 0.00 10.31 0.00 6.81 0.00 37.01 0.00 13.03 0.00 27.87 0.00 6.50 0.00 13.42 0.00 41.89 0.00 35.69 0.00 32.27 0.00 28.91 0.00 82.64 0.00 -82.64 0.00 8.25 0.00 1.96 0.00 21.32 50952 0.00 21.32 0.00 1,574.59 50953 0.00 1,574.59 0.00 78.04 50954 0.00 78.04 0.00 5,180.15 50955 0.00 5,180.15 0.00 775.58 50956 0.00 775.58 0.00 2,896.00 50957  Payable Type Invoice Invoice Invoice Invoice DEL LAGE LANDEN PUBLIC FINANCE Invoice DIVISION OF1 THES STATEARCHITECT Invoice EMPLOY AMERICA Invoice Invoice FIRST-CITIZENS BANKE &T TRUSTCO Invoice GIS PLUMBING INC. Invoice GOLDSTARI BUICKPONTIACGMC Invoice GONZALES ACE HARDWARE INC, Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Credit Memo Invoice Invoice GONZALESI IRRIGATION Invoice Invoice GREEN VALLEY FARMSUPPLY Invoice HILLE BROTHERS CHEMICALCO LEGALI NOTFCATONSERVIESNC. Invoice LNCURTIS&SONS  Post Date 10/11/2024 Water Truck 10/11/2024 Tire Repair 10/11/2024 Tire Repair 10/11/2024 WheelA Alignment 10/11/2024 Solar Pmt 10/11/2024 Disability Access & Education 10/11/2024 Janitorials Services 10/11/2024 Janitorial Sérvices 10/11/2024 Maintenance 10/11/2024 Pooll Heater 10/11/2024 Injector Kit 10/11/2024 Summer Camp BBQ 10/11/2024 Funnel 10/11/2024 Curb Painting 10/11/2024 Supplies 10/11/2024 Soccer field Prepl Material 10/11/2024 Curbs 10/11/2024 Roller Frames 10/11/2024 Basketball Net 10/11/2024 Wire 10/11/2024 Soccer Field Paint for Lines (Prep) 10/11/2024 Water 10/11/2024 Soccer Goal postl Locks 10/11/2024 Coat! Hathook 10/11/2024 Supplies 10/11/2024 Tube Brush 10/11/2024 Street Painting/Curbs 10/11/2024 Soccer Field Paint Lines Prep 10/11/2024 Buildings 10/11/2024 Supplies 10/11/2024 Supplies 10/11/2024 Battery 10/11/2024 Supplies 10/11/2024 Rainbird Nozzle 10/11/2024 Copier Lease 10/11/2024 PPE 10/11/2024 Chlorine 10/11/2024 ISubpoena  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  10/11/2024 Regular  GREATA AMERICAI FINANCIAL: SERVICES CORPOR 10/11/2024 Regular  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  Page 3ofb Packet Pg. 30  10/11/2024 9:54:34 PM    Date Range: 09/4/2024-10/1/2024  Check Report Vendor Number Vendor Name Payable! # INV871778 INV871845 3828 20-129.02-3-04 Invoice 72 522362240 522398962 522408612 522408613 522408614 522424529 522443599 522443600 522443601 522443602 522490258 522497334 522497335 522497337 522508646 2525 258803 92 09242024 09302024 4785 INV14331 91 09202024 09202024-210-3 Invoice 09202024-680-8 Invoice 93 3106860964 Invoice 4092 405385 568 9005858101 Invoice 189 95250646 4166 409893 2979 0228926 2685 0943006 2673 17000070109212 Invoice 4361 6013253469 Invoice 10/11/2024 9:54:341 PM  Date Payment Payment Type Payable Description 10/11/2024 Regular 10/11/2024 Regular  Discount Amount Payment Amount Number Discount Amount Payable Amount 0.00 1,730.00 0.00 1,166.00 0.00 675.00 50958 0.00 675.00 0.00 1,540.12 50959 0.00 158.34 0.00 94.49 0.00 154.95 0.00 49.14 0.00 89.57 0.00 28.00 0.00 158.34 0.00 84.92 0.00 49.14 0.00 89.57 0.00 163.67 0.00 158.34 0.00 154.95 0.00 49.14 0.00 57.56 0.00 207.84 50960 0.00 207.84 0.00 93.00 50961 0.00 62.00 0.00 31.00 0.00 19,420.00 50962 0.00 19,420.00 0.00 30,122.43 50963 0.00 492.42 0.00 29,103.53 0.00 526.48 0.00 742.03 50964 0.00 742.03 0.00 85.04 50965 0.00 85.04 0.00 588.96 50966 0.00 588.96 0.00 267.86 50967 0.00 267.86 0.00 6,776.25 50968 0.00 6,776.25 0.00 596.38 50969 0.00 596.38 0.00 103.60 50970 0.00 103.60 0.00 1,199.00 50971 0.00 1,199.00 0.00 142.32 50972 0.00 142.32  Payable Type Invoice Invoice LYNNA A. KOVACH MISSION UNIFORMS SERVICE Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice MYJ JEEP CHRYSLERE DODGE Invoice NATIVIDADI MEDICAL CENTER Invoice Invoice OPENGOV, INC Invoice P.G.&E. Invoice  Post Date 10/11/2024 Annuall Testing 10/11/2024 Annual Testing 10/11/2024 IWF Pipeline Easements 10/11/2024 PW Uniforms 10/11/2024 Air Freshener 10/11/2024 Towels/Mats 10/11/2024 City Hall Mats 10/11/2024 Towels 10/11/2024 Uniforms. 10/11/2024- Uniforms. 10/11/2024 Towels 10/11/2024 City Halll Mats 10/11/2024 Fire Towels 10/11/2024 Supplies 10/11/2024 Uniforms 10/11/2024 Towels 10/11/2024 City Hall Mats 10/11/2024 Supplies 10/11/2024 Maint. &F Repairs 10/11/2024 Police Services 10/11/2024 Police Service 10/11/2024 Budget Book 10/11/2024 Electricity 0006301263-7 10/11/2024 Utilities 10/11/2024 Electricity. 10/11/2024 Postage Machine Lease 10/11/2024 Internet Services 10/11/2024 Office Supplies-Shut Off Notices 10/11/2024 Solvent 10/11/2024 EVCharger Design 10/11/2024 Uniforms 10/11/2024 Fuel 10/11/2024 Internet 10/11/2024 Supplies  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  PITNEYE BOWES GLOBALI FINANCIAL! SERVICESI 10/11/2024 Regular  RAZZOLINK, INC. RAZZOLINK Invoice SAFEGUARDI BUSINESS! SYSTEMS SAFET-XLENSISTENS, INC. Invoice Invoice Invoice SCFUELS Invoice  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  SAGE RENEW/ABLE ENERGY CONSULTINGI INC. 10/11/2024 Regular  SALINAS VALLEY PRO: SQUAD. uit:  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  SPECTRUM Charter Communications  STAPLES, INC. Staples Contract & Commercial 10/11/2024 Regular  Page 4 ofo Packet Pg. 31    Date Range: 0924/2024-10/1/2024  Check Report Vendor Number Vendor Name Payable# 4458 240900531101 Invoice 3880 IN2050559 3670 09212024 3175 10012024 3718 5276 5281 5283 5290 6245 6250 6257 2192 025-480731 Invoice 025-483124 3410 183460634 103 INV00498843 Invoice INV00498888 Invoice INV00502913 Invoice 174 387148 99 274446-1 2919 INV7016662 Invoice INV7037223 Invoice  Date Payment Payment Type Payable Description 10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  Discount Amount PaymentAmount Number Discount Amount Payable Amount  Payable Type TAMSEN FORREST THE MAYNARD GROUP Invoice T-MOBILE Invoice Invoice TRINI'S PLUMBING Invoice Invoice Invoice Invoice Invoice Invoice Invoice MLERTECHNOLOGIES, INC. Invoice ULINE, INC. Invoice USA BLUE BOOK  Post Date  0.00 210.00 50973 0.00 210.00 0.00 284.49 50974 0.00 284.49 0.00 986.35 50975 0.00 986.35 0.00 110.00 50976 0.00 110.00 0.00 615.45 50977 0.00 43.75 0.00 42.83 0.00 208.62 0.00 16.29 0.00 53.39 0.00 54.26 0.00. 196.31 0.00 2,470.00 50978 0.00 1,170.00 0.00 1,300.00 0.00 50979 232,28 0.00 232.28 0.00 1,146.86 50980 0.00 487.20 0.00 352.36 0.00 307.30 0.00 439.54 50981 0.00 439.54 0.00 613.19 50982 0.00 613.19 0.00 100.00 50983 0.00 50.00 0.00 50.00 0.00 222,094.59  10/11/2024 After Hrs phone Service 10/11/2024 Zoom Meetings 10/11/2024 Cellp phones 10/11/2024 Police Officer TLO 10/11/2024 Water Dept 10/11/2024 Fire Dept 10/11/2024 Pool 10/11/2024 Shop 10/11/2024 Buildings 10/11/2024 Parks 10/11/2024 Streets 10/11/2024 System Conversion: Set Up 10/11/2024 System Conversion 10/11/2024 Cleaning Supplies fork Kid Power 10/11/2024 Equip/Repairs 10/11/2024 LMI Repair Kit 10/11/2024 Reed Pump Stick 10/11/2024 Supplies 10/11/2024 A/CCompressor 10/11/2024 Compliance Fees 10/11/2024 FSAFees  TRANS UNION RISKA ANDA ALTERNATID DATASOLI 10/11/2024 Regular  10/11/2024 Regular  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  VALLEYSAW! & GARDEN EQUIPMENT Invoice VOSTI'S, INC. Invoice WAGEWORKS  10/11/2024 Regular 10/11/2024 Regular 10/11/2024 Regular  Total Regular:  Bank Code POOL-MECHANICS: Summary Payable Count 150 0 0. 0 0 150  Payment. Count 72 0: 0 0 0 72 i.  Payment Type Regular Checks Manual Checks Voided Checks Bank Drafts i h : EFT's  Discount Payment 0.00 222,094.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 222,094.59  Page 50f u Packet Pg. 32  10/11/2024 9:54:34 PM    Date Range: 089/24/2024-10/1/202  Check Report  All Bank Codes Check Summary  Payable Count 150 0 0 0 0 150  Payment Count 72 0 0 0 0 72  Payment Type Regular Checks Manual Checks Voided Checks Bank Drafts EFT's  Discount Payment 0.00 222,094.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 222,094.59  Fund Summary  Fund 999  Name Pooled Cash Fund  Period 10/2024  Amount 222,054.59 222,054.59  Page 6ofu Packet Pg. 33  10/11/2024 9:54:34 PM    City of Gonzales City Manager Report  September 2024  AGENDA ITEM 7  Gearing up: for the Fall and Winter festivities is always fun, and a lot ofhard work. Staff members from the Recreation Department are busy working away to make it another memorable year. This year, we kicked offFall with a series of] Pool Movie Nights that brought community members out to enjoy the nice weather well into the end of September. Next, they'll be getting everything set up for the Harvest Festival, thel Halloween Movie Drive-In Night, the Holiday Parade and Holiday  Lights. Make sure to get all those family-friendly events calendared in.  Dennis and Janice Caprara Community Center Complex  The centeri is making great progress. We are slightly ahead ofs schedule and ifeverything continues tor run smoothly, we'll be getting ready to celebrate the completion of the center's construction in December of 2025! Please continue to adhere to the signs and traffic signals out there to ensure your safety and the safety ofothers in that area. To view the daily progress oft the center, visit the  link itps/share.earthcanet/SonzalescommuntyCenter Economic Development and Revenue Generation  Measure S will be on the ballot this November 5th. If approved, the Measure would help generate funding for unfunded programs and services like Fire, youth and adult programming,  road and street maintenance and repairs, and City parks.  Packet Pg. 34    Itwould] help us capture the rest oft the sales tax cap and ensure that the funding stays local and that it is overseen by a committee of local residents. Its passage would bring us in line with the rest of the local cities, bringing us to 9.25%. For more information on Measure S, please  visit the City's website or the City's Facebook page.  Housing  The Visita Lucia Housing project continues to advance. Negotiations are ongoing with the developer and LAFCO application components are being put together to seek annexation.  Three. ADUS are inj process and another permit was issued this month. Wastewater' Treatment Plant Expansion and Rehabilitation  The first phase of the construction of the industrial wastewater pipeline along Fermin Lane to the business park is moving along. Staff is planning to hold a groundbreaking ceremony for  the project sometime mid-November. Community Engagement  FREE! Gonzales Reuse, Recycle & Cleanup DAY GeneralG Garbage, ItemsA Accepted: TVS& Metal itemsincluding URE OR YARD WASTE Freezers!  Thank you to all ofy you whoj participated in helping too clean up our community during Community Beautification Month! There is no reason to stop now, especially with Salinas Valley Recycles hosting their Free Cleanup  Metal Steel  Day on the 19th!  Recycle  Here are some: ideas ofv what you can dot tol beautify oldj junk that is hanging around your residence. We  HELP Keepour  How can you help? Geti Maintain involvedi your inour property. Community Participatei inl localr recycling drives and community-v wide garage sales! StopbyCityh Halla landpicku upa FREES signfory yourf fronty yard! Firstcome, firsts serve&o only1 signperhousehold.  the community: clean after your pet, plant or clean BEAUTIFY .Keepa litter bagv withy you. up your garden, maintain your property, get rid of GONZALES! Cleanu up after yourp pet. can all contribute to making our community a community clean! Garden!  beautiful, clean and healthy one.  Save the Date for the upcoming events:  Fall Festival is scheduled for Saturday, October 26th from 4:00pm - 7:00pm on Fourth  Street.  Packet Pg. 35    ine Capitai GON2  AGENDA ITEM 8  Dityof Gongales  COMMUNITYDEVELOPMENTDEPARIMENT  ACTIVITY REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024  Taven Kinison Brown, Community Development Director  THROUGH: Carmen Gil, City Manager SUBJECT: Activity Report ECONOMICDEVELOPMENT  Freeway Sign. Following the City Council's approval of the Lease Agreement with Legacy Signs on Monday October 7, 2024, staff is coordinating the necessary signatures, and the sign company will  proceed to prepare construction plans and begin fabrication.  HOUSING  Vista Lucia Specific Plan. Staff is meeting and conferring daily on the Development Agreement (DA), and is actively planning for a coming Joint Workshop of the Planning Commission and City Council. Staff will share an "end run" calendar soon that will include a joint PC/CC Workshop, a Planning Commission public hearing and then a City Council public hearing. Following City Council action, the LAFCo application will be made. A copy of the Vista Lucia Specific Plan EIR: is available on the City of Gonzales website htps/gonzalescagovservices/communty-developmentdevelopment-activity- Outreach. The City continues to add names and groups (including realtors, commercial brokers and civic leaders) tot the "Interested in Housing" list for our citizens (153 persons as of October 14, 2024). People on the list will be notified of the coming Vista Lucia Specific Plan PC/CC joint workshop, Planning Commission public hearing and City Council public hearing. We will draw from the outreach list once Housing Element. In the week ofOctober 14, City staff will have posted to the City's website and social media, an updated 6th Cycle Housing Element draft that has responded to comments received from the  projects) under the Vista Lucia Project section.  again toi invite public participation to the LAFCO public hearing annexation proposal.  Packet Pg. 36    public and the office of Housing and Community Development (HCD). After being available toi thej public for 7 days, staff will forward the new revisions to HCD, where they will have 60-days to review this Housing Project on S. Alta. The City has engaged with CHISPA to find a path to construct new housing units on this project site. Presently, CHISPA will be engaging an architect to work with the original designer oft the City's ADU templates, and the City is fostering conversations for potential private sector  second Housing Element document and to comment again.  financing to facilitate a project there. CODE: ENFORCEMENT progress to remedies.  The City continues to meet with property owners, inspect potential violations and start documentation to  BUILDING DIVISION ACTIVITY  From September 1, 2024, to September 30, 2024 (30 reporting days), the City issued 13 permits from the Building Division for roof repairs, solar installations, residential restoration, demolition of unpermitted structures, and a new ADU. The estimated value of alli improvements was $572,923.50  GENERAL COMMUNITY DEVELOPMENT ACTIVITY  Potential Mini Storage and Vehicle Storage. The Community Development Department continues to work with an applicant as his proposal takes shape for new commercial, industrial uses on Gonzales River road on the western city edge. The potential here is to provide support for our major agricultural processing giants but will also include mini storage and vehicle storage opportunities for the greater public. City's Business License Ordinances. The Economic Development staff is looking into an update to the City's Business License Ordinances that have not been revisited since 1972 (52 years). Vacant Position. Development Services Technician & Administrative Analyst position. The position is full-time and has a salary range of $4,044-$5,504 monthly. To apply, please go to  htps/gonzalesca.ovservicey.numan-resourcexjob-opportunties.  Packet Pg. 37    ine Capitai GON2  AGENDA ITEM 2  Dityof Gongales  CIYMANAGERDEPAKIMENI  STAFF REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024 Carmen Gil, City Manager  SUBJECT: Community Engagement & Recreation Departments Activity Report  Current. Activities Kid Power  In September, we had a total of 29 kids signed up for Kid Power. We continue to work hard to provide students with homework time and give extra help to the ones who need it. We have also  been implementing al lot of learning games with the kids to make it fun.  Thanks to the warm weather we had all of September and our pool staff, Kid Power was able to The students had the opportunity to visit our Community Garden Site on one of our Fun Friday's and the students had the opportunity tol harvest some of the veggies that are, growing in the garden  swim every Thursday this month, which thel kids loved!  Packet Pg. 38    bed. We used this time to explain to the kids that they are welcome to come with their families to For October, we are, getting ready for our Halloween Door Decorating Contest that we have done the past few years. We hope that we will get most of Gonzales' staff to participate in the voting. Kid Power got a visit from three baby goats. It was sO much fun watching the kids pet them and  this space and thati iti is open to everyone.  The voting will take place on October 28th-3 31, 2024 from 3:30PM-5:30PM. ask lots of questions about] how they could have a goat as aj pet.  Gonzales Youth Council  The GYC conducted interviews during the week of September 11th through September 13th and moved forward with all 12 students that applied, 2 of them being returning GYC members. Our 2 Youth Commissioners, Valeria and Emily, are currently participating in a Youth-led Participatory Action Research Project in collaboration with other local Youth Councils including: City of Soledad, City of Greenfield, & CHISPA. The students attended a mandatory orientation on Saturday, September 14th and will conclude their findings by the first week of November. Hartnell Foundation was able to sub-grant $10,000 to each organization to further support On Saturday, October 5th the GYC hosted their orientation where they began to outline their 2024-25 platform which includes: Education / Classes, Housing / Tenant Rights, Adulting 101  regional collaboration.  and Community Engagement, / School Spirit.  They have been actively speaking to Harris & Associates and Otto Construction to map out dates that the full GYC can visit the Community Center Site and finalize a date for them to participate  in the furniture testing. Recreation/ Community Engagement  We continue to host senior art and cooking classes, in partnership with Alliance on Aging, the  Gonzales Adult School and' Taylor Farms Family Health & Wellness Center.  GONZALES ADULT SCHOOL ISCTELAPARA ABSLTDS JE CORZALES  Packet Pg. 39    On September 11", we met with Community Alliance with Family Farmers (CAFF) and organization that supports small farmers, local aggregators, and local community by funding the purchase and distribution of produce boxes. CAFF is currently working with Savor the Local (a locally owned business) and Salinas Valley Health, to discuss the opportunity to bring an additional food distribution to Gonzales. The food distribution will run as a pilot program once a week for 12 weeks starting Wednesday, October 16th at Central Park at 10AM. It will be part of The Recreation and Community Engagement Department attended the monthly lunch-in hosted by the Adventure Seeking Seniors at the St. Theodore Church. We use this time to be able to On September 20th the Recreation and Community Engagement Department welcomed a new intern, Ivan Caballero who is currently attending CSUMB and studying Collaborative Health and Human Services. This is our 3md intern we add to the team through our partnership with CSUMB,  the ongoing efforts oft the Salvation Army.  inform the participants about the free events the city is hosting.  we. look forward to hosting more interns at the city.  Aquatics  September was the last month the Gonzales Community Pool remained open. We hosted movie nights every Saturday of the month and concluded with a showing of the movie "Toy Story" on  Saturday, September 28th. Activity in the Planning Phase  The Recreation and Community Engagement Department is currently planning for our all our October festivities. October 19th we will host our Annual Halloween Movie Night at Centennial Park with a free showing of Monsters Inc. There will also be a Costume CON Contest, and kids will have the opportunity to win  prizes.  Meviel light SATURDAY OCTOBER1 ATCENTENNIAL PARK  We are also planning for our Fall Festival which will include a Trunk or Treat Contest, Costume Contest, Vendors and small pumpkin patch thanks to a donation from Braga Farms. We are currently still accepting registrations for our Trunk or Treat and hope we. have the  CITY AND  SAlFESTIVAL Saturday 26 October 2024 4-7PM on 4th street TRUNKO OR1 TREAT-PUMPKINI PATCH-VENDORS- GAMES- FACE PAINTING- COSTUME CONTEST FORA AGES: 0-12& MUCHN MORE!  same turnout we did last year!  Packet Pg. 40    ine Capitai GON2  AGENDA ITEM 10  Dityof Gongales  FREDEPARIMENT ACTIVITY REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024 Jason Muscio, Fire Chief  THROUGH: Carmen Gil, City Manager SUBJECT: Fire Department Activity Report  RESPONSES  There were 69 calls for service during the month of September bringing the total number of calls for calendar year 2024 to 634. Calls consisted of 1 structure fire, 1 vegetation fire, 38 EMS calls, 6 hazardous conditions/materials calls, 7 service calls, 11 cancelled in route, and 5 false alarms. The structure fire took place on 9/15 on Longhorn drive and involved al backyard shed that was destroyed, the fire did not spread to surrounding residences. The vegetation fire took place on 9/29 and involved an area int the industrial park. Mutual aid to CAL FIRE was provided for one: incident during the month. There were two instances of simultaneous calls requiring assistance from our neighboring departments.  TRAINING  All personnel completed the mandatory 8-hour hazardous materials operations recertification course, as  well as refresher training on incident size up, and vehicle extrication.  EQUIPMENT  Engine 8112 is out of service for needed repairs due to the accident, and other mechanical issues. Annual required flow testing was performed on all self contained breathing apparatus, and hydraulic extrication  equipment. PREVENTION  Eight annual business inspections were conducted during the month, as well as inspections of the installation of the underground: fire service water supply lines at the Community Center project site.  Packet Pg. 41    GRANTS  The Department received official notification of award for the grant submitted to the California Office of Traffic Safety for the purchase of new E-draulic rescue tools. The equipment has been ordered and delivery is expected sometime in mid-October. We are still waiting for notification from FEMA regarding  our grant application for ai newi fire engine.  Packet Pg. 42    ine Capitai GON2  AGENDA ITEM 11  Dityof Gongales  POUCEDEPAKIMENT ACTIVITY REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024 Keith Wise, Chief of Police  THROUGH: Carmen Gil, City Manager SUBJECT: September 2024 Police Activity Report  Crime and Arrests  The Gonzales Police Department investigated 6 Part IC Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of September 2024. During the same time last During the month of September 2024, Officers made 12 arrests. During the same time last year, there During the Month of September 2024, the department initiated 5 Abandoned Vehicle Abatement (AVA) cases. All 5 violations were self-abated by the registered owners upon notification of the Municipal Code  year, there were 81 Part ICrimes investigated.  were at total of 12 arrests.  Violation. Calls for Service  The Department responded to 635 calls for service in September 2024. There were 62 crimes, accident,  and information reports taken during the month.  Animal Control services: Cats Dogs Total =  During the month of September 2024, the Animal Control Officer (ACO) provided the following Animal Control Trapped/Stray Dead Injured Bite Cases Returned to Transported to the SPCA  Owner 0 6 6  2 0 2  4 1 0 0 4  0 1  0 2 2  Packet Pg. 43    Significant Cases  Although the Police Department responded to 635 calls for service during the month of September 2024, the most significant cases involved 61 PartIcrimes. 0- Homicide 1 - Rape, 0 - Robbery, 3- Assault,  1-B Burglary, 1- Larcenies, and 0 -Stolen Motor Vehicle Thefts.  Training  Thel Department continues to conduct in-house training.  On September 10 - 13th, 2024 Sergeant Melgoza attended a 4-day Law Enforcement Drone Association training covering topics like Tactical Drone Operations, Aerial Search Tactics, Crash / Crime Scene Reconstruction, Drone as First Responder Programs, UAS Program, among other topics. This training On September 19, 2024, Department staff attended an in house Truancy training presented by the District  was hosted by the Irvine Police Department in Irvine California. Attorney's Office at the Police Department Community Room.  Packet Pg. 44    ine Capitai GON2  AGENDA ITEM 12  Dityof Gongales  PUBICWORKS/CIYENGINEENDEPARIMENT  ACTIVITY REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024  Patrick Dobbins, Public Works Director/City Engineer  THROUGH: Carmen Gil, City Manager SUBJECT: Public Works Activity Report  BUILDINGS  Community Center Complex Project - Main efforts over last month were completing the installation of the underground utilities and constructing the building walls for the Library and Teen Center. A "topping out" ceremony was held on 10/11/2024. Staff presented a progress report at the 9/16/2024  Council meeting and will provide an update at the 11/18/2024 Council meeting.  WASTEWATER  1. Industrial Wastewater (IW) System = The IW Pipeline Contract was awarded at the 9/03/2024 Council meeting to Sierra Construction & Excavation. A preconstruction meeting was held on 10/03/2024. Staff and the MNS Construction Manager have been meeting with the various property owners and presented them with the temporary and permanent easements needed for the pipeline 2. WWTP - Regional Board staff visited the WWTP on 8/22/2024. City staff provided the Regional Board staff with updates on the operations and maintenance efforts of the WWTP and our progress on constructing the IW System. Staff is preparing the quarterly report due to the Regional Board by  contract.  10/30/2024. ROADS  1. Safe Routes to School - TAMC staff presented the steering committee's two recommended projects at the 6/17/2024 Council meeting. Staff is reviewing a proposal from a consultant to design the two  recommended projects.  Packet Pg. 45    2. Monterey Salinas Transit Circulator- - Over the last three years, MST staff coordinated with City staff to replace the Dial-a-Ride Service with a fixed route bus service in Gonzales. MST staff issued the project for bid and Don Chapin Company was thel low bidder. Construction began on' 9/12/2024.  SOLID WASTE  Quarterly Tri-Cities Franchise Agreements Meetings - Staff from the Salinas Valley Solid Waste Authority, Tri-Cities Disposal and the cities of Gonzales, Soledad, and Greenfield meet on a quarterly basis to discuss the various waste collection programs (commercial accounts, food waste, organic waste), compliance with latest state regulations, public outreach and education, customer surveys, etc.  OTHERI PROJECTS  1. GIS- City staff continues to work on a GIS mapping system by inputting field data for water, sewer and storm drainage systems. Staff hold monthly meetings with ProWest (GIS consultant). Current mapping efforts include assessing sidewalks to map uplifted or missing sidewalk panels and  performing a street signi inspection.  PUBLIC WORKSOPERATIONSANDMAINTENANCE  WASTEWATER  Staff perform testing and daily inspections of the influent and effluent at the wastewater treatment plant. Staff have been discing at the existing and new treatment plant property. Staff perform maintenance at the The percolation ponds at the WWTP are not percolating as they should, staff continue to try different  sewerl lift stations.  options to make the plant run better.  WATER  Staff tests for chlorine residual daily and maintenance on the water system. Staff repairs chlorine leaks and perform maintenance on the wells. Staff continues to map the water and sewer system for the GIS  mapping.  Staff are working on a lead and copper survey for the State.  Staff inspected and observed the hot taps used to install the water lines (domestic, fire, and irrigation) at the Community Center. Staff observed the chlorination of the new lines, the flushing and testing of the  new domestic and fire lines.  Staff observed the hot tap connection for the water lines at the Community Center.  Packet Pg. 46    STORM WATER  Staff continue to clean and maintain bioswales. Staff began annual maintenance of the perc ponds and Staff found a collapsed storm drain, Staff dug out the old storm drain and made at temporary repair.  outfalls. Staff clean storm drains and hot spots before the rainy season.  Field staffinvestigating: a collapsed storm drain at thei intersection of Fifth Street/Elko Street  PARKS  Staff mows turf areas in the City parks regularly. Staff cleans restrooms, cleans trash, and make repairs in  parks. Staff repair and maintain irrigation in Central and Centennial Park.  GOVERNMENT BUILDING clean the Council Chambers weekly.  Staff continue to maintain all City owned buildings. Staff clean the Vosti Center restrooms daily. Staff Staff are performing maintenance of the HVAC units on City owned buildings. The HVAC unit at the Vosti Center and the Medical Building need repair and maintenance due to the excessive heat this month.  STREETS EVENTS TRAINING  Staff continue to fill potholes. Staff continue toj paint street markings including red zones.  Staff participated in thel Monterey Bay Water Works training event and Vendor Show on 9/19/2024.  The City of Gonzales hosted a Confined Space training, given by California Rural Water Association.  Employees from King City, Greenfield and Soledad joined staff for this training.  Packet Pg. 47    Intern Alejandra participated in Confined space training.  Packet Pg. 48    ine Capitai GON2  AGENDA ITEM 13  Dityof Gongales  PUBICWORKS/CIYENGINEENDEPARIMENT  STAFF REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024  Patrick Dobbins, Public Works Director/City Engineer  THROUGH: Carmen Gil, City Manager  SUBJECT: Resolution No. 2024-63 Authorizing the City Manager to Execute Easement  Documents and Right-Of-Entries for the Industrial Wastewater Pipeline Project  for an Amount Not to Exceed $250,000  RECOMMENDATION  Staff recommends that the City Council approve Resolution No. 2024-63, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Execute Easement Documents and Right-of-Entries Agreements for the Industrial Wastewater Pipeline Project for an Amount Not to Exceed  $250,000. BACKGROUND  Phase 1 of the Industrial Wastewater (IW) System will increase the capacity of the City's wastewater system by 1.0 million gallons/day. The IW System will be delivered through the following construction  contracts:  IW Pipeline contract IW Treatment Facility contract  Construction of the IW Pipeline requires obtaining both permanent and temporary easements. Permanent sanitary sewer and/or expanded public utilities easements provide the City the right to install and maintain, in perpetuity, the new pipeline within private properties. Permanent easements average twelve toi fifteen feet wide over the center of the pipeline depending on the specific location. For areas adjacent to Katherine Street and existing public utilities easements, public utilities easements are proposed, whereas sanitary sewer easements are proposed throughout the rest of the pipeline alignment.  Packet Pg. 49    Temporary construction easements and Rights-of-Entry are also necessary for project execution to provide the contractor with sufficient space to maneuver materials and equipment, layback and excavate the trench, install the pipeline and manholes, and properly backfill. Along the pipeline alignment, the Once the pipeline is completed, the temporary easements will no longer be needed, and the temporary easement agreements will expire, thereby relinquishing the City's right to use the properties. Similar to temporary construction easements, Rights-of-Entry are to facilitate construction of tie-in facilities within IW producer properties and will expire upon construction completion. Rights-of-Entry are being executed Piini Realty was engaged to prepare property appraisals of the six properties that will require temporary and permanent easements to complete the project. Appraisals considered the fair market value for the permanent easement takes of the sanitary sewer and public utilities easements. Whereas the temporary easements considered the appropriate land rent and return on land value based on the proposed duration.  temporary easements are: roughly 50-feet wide.  at zero cost to the City as the tie-ins will directly benefit the IW producers.  REVIEW & ANALYSIS  Easements will be obtained from the following property owners with the cost are listed in this table:  Sanitary Sewer Easement $3,357  Public Utilities Easement N/A N/A N/A N/A $33,709 $32,472 N/A  Temporary Construction Right-of- Easement $4,865 $2,634 $21,625 $2,261 $9,235 $8,468 N/A  Property Owner Chunn Ranch  Total $8,222 $5,215 $42,188 $7,236 $96,230 $72,113 $0.00  Entry N/A N/A N/A N/A $0.00 N/A $0.00  JJ&1 H Violini Co. $2,581 D'Arrigo Bros  $20,563  Westphal Ranch $4,975 Taylor Farms Avolem Mann Packing/ Del Monte  $53,286 $31,173 N/A  Over the last four months, City staff, the MNS Construction Manager and staff with Pini Realty have met with representatives with the various property owners and all are cooperating with the acquisition of the The costs for the easement from Taylor Farms and Avolem are significantly higher than the others as these properties are: in the Industrial Business Park and the cost per square foot is much higher due to the Industrial zoning as compared to the Agricultural zoned parcels along the rest of the pipeline alignment. A CEQA-Plus EIR for the IW System was adopted in October 2021 and construction documents (plans, technical specifications, and cost estimate) were completed in September 2022. As such, no further CEQA analysis is needed for execution of the easement documents and agreements contemplated in this  easements.  report.  Packet Pg. 50    Staff recommends that the City Council authorize the execution of the various easements and Right-of- Entries to facilitate the construction of the Industrial Wastewater Pipeline Project for an amount not to  exceed $250,000, which includes a contingency budget of $18,795.  How Recommendation Supports the Vision  Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and  committed: to working collaboratively to preserve and retain its small town charm.  Explain: This project supports our vision by making improvements to the wastewater system to  increase its capacity for residential and industrial developments. Explain how the Recommendation Directly Implements the Mission  The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to, provide excellent services that enhance the quality ofl life of our  diverse community. X_Yes. No_ N/A  Explain: Maintaining and improving the wastewater treatment plant enhances the community's quality oflife by providing for treatment and safe disposal oft the City's wastewater. City. services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment  opportunities in an environmentally sustainable manner. X Yes No Strong fiscal policies allow us to provide appropriate infrastructurefor:  N/A  Explain: See Vision explanation above.  Public Safety Housing Recreation Environment Education  X Yes X Yes X Yes X Yes X Yes  No No No No No  N/A N/A N/A N/A N/A  Explain: See Vision above.  ALTERNATIVES  Amend or modify staff's recommendation.  BUDGET IMPACT  Easements will be funded with the IW Project's State Revolving Fund loan.  CONCLUSION  Staff recommends that the City Council approve Resolution No. 2024-63, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Execute Easement Documents and Right-of-Entries Agreements for the Industrial Wastewater Pipeline Project for an Amount Not to Exceed  $250,000.  Packet Pg. 51    Attachments:  1. Resolution No. 2024-63 2. Chunn Ranch! Easements 3. JJ&H Violini Col Easements 4. D'Arrigo Bros Easements 5. Westphal Easements 6. Taylor Farms Easements 7. Avolem Easements  8. Mann Packing/Del Monte Right of Entry  Packet Pg. 52    RESOLUTION NO. 2024-63  AE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES AUTHORIZING THE CITY MANAGER TOI EXECUTE EASEMENT DOCUMENTS AND RIGHT-OF-ENTRIES AGREEMENTS FOR THE INDUSTRIAL WASTEWATER PIPELINE PROJECT FOR. AN  AMOUNT NOT TO EXCEED $250,000  WHEREAS, the City will expand the City's Wastewater System by constructing an  Industrial Wastewater System (IW System) with an initial capacity of 1.0 million  gallons/day; and  WHEREAS, a CEQA-Plus EIR for the IW System was adopted in October 2021 and construction documents (plans, technical specifications, and cost estimate) were completed in September 2022, and as such, noi further CEQA analysis is needed for execution of the easement documents and agreements contemplated in this resolution; and WHEREAS, the IW System will be delivered though two construction contracts WHEREAS, funding to construct the IW System will come a $29M State Revolving WHEREAS, construction of the IW Pipeline requires obtaining both permanent and WHEREAS, Piini Realty prepared the appraisals for the six properties that will provide the temporary and permanent easements and the Polaris Consulting prepared the  (the IW Pipeline contract and the IW Treatment Facility contract); and Fund loan that will be paid back using City Sewer Rates; and  temporary easements; and  legal descriptions and related exhibits; and  WHEREAS, Staffrecommends that the City Council authorize the City Manager to execute the sewer easements, public utility easements, temporary construction easements, and Rights-of-Entry to facilitate construction of the IW Pipeline project in the amount of  $250,000 which includes a contingency budget of $18,795.  NOW THEREFORE, BE ITHEREBY RESOLVED by the City Council of the City of Gonzales that the City Manager is authorized to execute the sewer easements, public utility easements, temporary construction easements, and Rights-of-Entry to facilitate construction of the IW Pipeline project in the amount of $250,000 which includesa  contingency budget of $18,795.  Page 1 of2  Packet Pg. 53    PASSED AND ADOPTED at a regular meeting of the City Council of the City of  Gonzales duly held on the 215 day of October 2024, by the following vote:  AYES: NOES: ABSTAIN: ABSENT:  COUNCIMEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS:  Josel L. Rios, The Honorable Mayor  ATTEST:  Mary Villegas, Deputy City Clerk  Page 2 of2  Packet Pg. 54    CHUNN RANCH .  Grant of Easement - Sanitary Sewer Easement Grant ofTemporary Easement Appraisal Report - Chunn Ranch  Packet Pg. 55    Recording requested by: CITY OF GONZALES 147 Fourth Street Gonzales, CA 93926 And when recorded mail copy to: CITY OF GONZALES Public Works Department POI Box 647 Gonzales, CA 93926 No Recording fee - Government Code $27383  Space above this line for Recorder's use  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by Chunn Ranchl LLC,a California Limited Liability Company ("Grantor"),  for the benefit of the City of Gonzales, an incorporated City ("Grantee"), with reference to the  following recitals:  RECITALS  A. Grantor owns that certain: real property commonly referred to as APN: No. 223-011- B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement Purpose')aportion oft thel Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the  032, in the County of Monterey, State ofCaliforia.  site plan attached hereto as, Exhibit B.  NOW,THEREFORE, in consideration ofthef foregoingi recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a permanent non-exclusive easement  to1 the Easement Area fort the Easement Purpose; and for the further purpose ofingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with ar right ofway upon, over, under, through and across the Property to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill or other structures over the hereinafter described Easement  Area.  Packet Pg. 56    2. 19,2024. 3.  Compensation. Grantor acknowledges receipt of compensation from Grantee for  the Easement in accordance with the value of the property per the Appraisal Report dated August  Maintenance. Grantor hereby grants to Grantee a perpetual non-exclusive  easement for maintenance and repair purposes over the Easement Area and such portions of the Property as arei reasonably necessary for such maintenance and repair. Grantee shall bei responsible  fora all costs associated with the Grantee's use oft the Easement.  4. No Gift or Dedication. Nothing contained in this Easement Agreement shall be deemed to be a gift or dedication ofa any portion of the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted in this Easement Agreement shall be strictly limited to and for the purposes herein expressed with respect toj private property solely for the benefit of the parties and their respective  tenants, invitees and licensees.  5.  Mortgagee Protection. No breach or violation oft this Easement Agreement or of  the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing a loan made in good faith and for value with respect to any: portion of the Property, but all of the provisions of this Easement Agreement shall be binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to the Property or any portion thereof, by foreclosure, trustee's sale, deed  in lieu ofi foreclosure, or otherwise.  6.  Notice of Material Issue. Grantor shall promptly notify Grantee: in writing of any 7. Governing Law. This Easement Agreement shall be governed by and construed  material issue or fact that may affect thel Easement. in accordance with the laws oft the State of California.  8.  Successors and Assigns: Covenants Running with the Land. This Easement  Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. of the  California Civil Code. 9.  Severability. Ifany provision ofthis Easement Agreement is prohibited or held to  be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability oft the other provisions shall not be affected ori impaired thereby and (b) thej parties hereto shall endéavor in good faith negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or unenforceable  provisions.  10. Remedies. Ini the event ofany breach or threatened breach of any provision ofthis Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to enjoin such! breach orthreatened breach andi to1 recover damages for any such breach. Theremedies  2  Packet Pg. 57    permitted or available pursuant to the provisions of this Easement Agreement shall be cumulative  and in addition to any rights or remedies available atl law or in equity.  11. Indemnification.  (a) Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising from the willful or negligent acts or omissions ofa Grantor Party. affiliates, contractors, employees and agents (collectively, "Grantee. Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly oril indirectly from or related to Grantor'sexercise of any rights retained by Grantor under this Easement Agreement or arising from the willful or negligent acts or omissions of a Grantor Party, provided that Grantor shall: not be required to indemnity or hold Granteel harmless from and against any loss, claim, demand, costs, expense, lien, fine, penalty, liability, judgment or damages arising from the willful or negligent acts or omissions ofa Grantee  (b) Grantor shall indemnify, defend and hold Grantee, and its officers,  Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each ofwhich shalll be deemed an original, but all ofwhich when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart: identical thereto except] having additional signature pages  executed by other parties to this Easement Agreement attached thereto.  13. Cost of Enforcement. Ifany legal or equitable action or proceeding isi instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofits costs of suit,  including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 58    IN WITNESS WHEREOF, this agreement isl hereby executed on the day and year first  above-written. Grantor: By: Name: Title:  Anotary public or other officer completing this certificate verifies only the identity of thei individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On_  SS.  2024 before me,  Notary Public,  personally appeared  who proved to me on the basis of  satisfactory evidence tol be the person(s) whose name(s)is is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity  upon behalfofwhich thej person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws oft the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 59    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: City of Gonzales  By:  Name: Carmen Gil Title: City Manager  Anotary public or other officer completing this certificate verifies only the identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity ofthat document.  STATE OF CALIFORNIA COUNTY OF On personally appeared  SS.  2024 before me,  Notary Public,  who proved toi me on the basis ofs satisfactory evidence  tol be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the  person(s) acted, executed the instrument. that the foregoing paragraph is true and correct.  Icertify under PENALTY OF PERJURY under the laws oft the State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 60    EXHIBIT A  Legal Description of the Easement Area  A-1  Packet Pg. 61    Grant Deed of APN 223-011-032  Easement #1 Sanitary Sewer Easement Area Chunn Ranch LLC to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 4C of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded January 9, 1995 in Reel 3189 at Page 1129, Official Records ofs said County, being more particularly described as follows: As strip of land lying easterly of, adjacent to and contiguous with an existing 15 foot wide: sewer easement as described ini the deed recorded in Reel 321 at Page 21, Official Records ofs said County,  described as follows:  COMMENCING at an angle point in the northeasterly line of said land described in Reel 3189 at Page 1129; thence along the northeasterly line ofs said land, North! 53" 34'26" East, 11.341 feet to thel POINT  OF BEGINNING; thence continuing along said northeasterly line  1) North 53° 34' 26" East, 4.661 feet; thence departing said northeasterly line  2) South 11°37'5 55" West, 856.13 feet; thence  3) South 69° 40' 37" West, 12.791 feet to a point on the easterly line ofs said existing sewer  easement described in said deed; thence along said easterly line 4) North 12°08'5 50" East, 859.461 feet to the POINT OF BEGINNING.  Containing an area of 5,969. square feet, more or less.  This legal description was prepared by:  IONAL LAND A. KOL o - S. OF CALIFF  dgakp Lynn A. Kovach P.L.S.5321 Dated: July31,2024  A-2  Packet Pg. 62    EXHIBITB Site Plan of] Easement Area  B-1  Packet Pg. 63    2-8  Packet Pg. 64    GRANT OF TEMPORARY EASEMENT  THIS GRANT OF TEMPORARY EASEMENT (this Temporary  Easement") is made as of  2024, by Chunn Ranch LLC, a California Limited  Liability Company, ("Grantor"), for thel benefit oft the City of Gonzales, an incorporated City  ("Grantee"), with reference to the following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as. APN No. 223- B. Grantee has requested a temporary easement to perform the activity, more particularly described in Exhibit A (the Improvements"), attached hereto and incorporated  011-032, in the County of Monterey, State of California.  herein by reference. C.  Grantee has requested temporary access to a portion of the Property more  particularly described on Exhibit B attached hereto (the Temporary Easement Area"), and  depicted on the site plan attached hereto as Exhibit C.  NOW, THEREFORE, in consideration of the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency  ofwhich are hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a temporary easement to the  Temporary Easement. Area for thel Improvements; and fort thei further purpose ofingress, egress andj passage across with all the necessary materials, tools, supplies, and other equipment related to the Improvements, together with a right of way upon, over, under, through and across the  Property to access the Temporary Easement Area (the "Easement").  2.  Term. The term of this Temporary Easement shall commence when  performance of the Improvements begins, no earlier than November 1, 2024, and shall automatically terminate upon completion of the Improvements or no later than May 1. 2025. Grantee shall provide Grantor at least twenty-four (24) hours' notice prior toj performance of any Improvements. Grantor shall grant no rights inconsistent with the reasonable exercise by  Grantee ofi its rights under this Temporary Easement.  3. Cost. TheGrantee shall beresponsible forall costs and expenses associated with performance of the Improvements, except for those cost or expenses resulting from the negligence orv willful: misconduct ofthe Grantor. Seel Exhibit A forothere exceptions, ifany. Temporary Easement in accordance with the Appraisal Report, updated August 19, 2024. Value of the Temporary Easement was predicated on an appropriate land rent for the Temporary Easement area and duration. Total compensation for the Temporary Easement is $4,865.00, four thousand, eight hundred and sixty-five dollars and zero cents.  4.  Compensation. The Grantee shall compensate the Grantor for the use of the  5.  Performance ofthe Improvements. Timei is ofthe essence with respect to the  performance of the Improvements, and to the extent reasonably feasible, the Grantee shall  diligently pursue completion oft the Improvements.  Packet Pg. 65    6.  Safety. Grantee shall erect and maintain on the Property, as necessary,  reasonable safeguards for safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and  notifying owners and users ofadjacent sites and utilities.  7.  Revocable Licenses and Termination. This Temporary Easement shall be  revocable by the Grantor only if the Grantee fails to comply with any provision herein. Revocation may not occur until Grantor has provided the Grantee with written notice of the alleged breach and at least ten (10) days to cure. During said 10-day period to cure, the Parties shall meet and confer regarding the alleged breach and potential cure. Notice tot the Grantee of any alleged breach shall be sent to Patrick Dobbins, Public Works Director, 147 4th Street, Gonzales, CA. If Grantor terminates this Temporary Easement at any time after performance ofthel Improvements has commenced, but prior to the completion ofs such Improvements, orif Grantor otherwise prohibits or impedes Grantee right to enter the Property hereunder, the Grantee shall not be liable for any actions, claims, suits, penalties, obligations, liabilities, or damages to the Property, environmental claims ori injuries to persons, which may be caused by Grantee's performance of the Improvements pursuant to this Temporary Easement or arising out of or in connection with performance of the improvements, whether such activities or performance thereofis by Grantee or anyone directly ori indirectly employed or under contract with Grantee, and whether such damage or claim shall accrue or be discovered before or after  the termination oft this Temporary Easement.  8.  Restoration of the Property. As part of the Improvements to the Property,  Grantees shall, ati itsown cost and expense, restoret thel Properyltpasubstantaly similarcondition in which it was prior to Grantee's] performance oft the Improvements. In the event that Grantor terminates thisTemporary Easement for anyreasonothert than ac Grantee default and at any time after pertormance of the Improvements has commenced, but prior to the completion ofsuch Improvements, the Granteeshally notbeobligated torestorethel Property as described herein. no termination of this Temporary Easement shall release the parties from any liability or obligation hereunder resulting from any acts. omissions or events happening prior to the  9.  Continuingl Liability. Exoplasolhemwisesetionthinthi-Temponany Easement,  termination ofthis Temporary Easement and restoration of thel Property.  10. Counterparts. This Temporary Easement may be executed in one or more counterparts, each ofwhich shalll bec deemed an original but allo ofwhich togethershall constitute INV WITNESS WHEREOF, the Parties hereto have executed this' Temporary Easement on  one and the sameinstrument. the date first written above. CITY OF GONZALES Carmen Gill, City Manager  OWNER By: Name  By:  Packet Pg. 66    EXHIBIT. A Description of Work  The scope of work is as follows:  Installation, testing and commissioning oft new 12-inch/24-inch PVC below grade gravity sewer pipelines, manholes, and appurtenances to support the City's upcoming  Industrial Wastewater Treatment Program.  Not included: 1.  Not. Applicable  A-1  Packet Pg. 67    EXHIBIT: B  Legal Description of the Easement Area  B-1  Packet Pg. 68    Grant Deed of APN 223-011-032  Easement #2-T Temporary Construction Easement Area  Chunn Ranch LLC to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 4C of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being ap portion of the land described in the deed recorded. January 9, 1995 in Reel 3189 at Page 1129, Official Records ofs said County, being more particularly described as follows:  BEGINNING at the most northerly corner of said land described in Reel 3189 at Page 1129; thence along 1) South 40° 24'14" East, 18.86 feet; thence departing said northeasterly line crossing said land  the northeasterly line of said land  2) South 53°33'28" West, 241.39 feet; thence 3) South 53°32'26" West, 1000.07 feet; thence 4) South! 53°5 50'4 42" West, 990.42 feet; thence 5) South 11°37'55" West, 863.19 feet; thence 6) South 69° 40'3 37" West, 42.521 feet; thence 7) North 12° 08' 50" East, 876.481 feet; thence  8) North. 53° 34'26" East, 2256.28 feet to the POINT OF BEGINNING.  Containing an area of 1.58 acres, more or less. This legal description was prepared by:  ONVAL LAND A. O F CALIF  dgafpt Lynn A. Kovach P.L.S.5321 Dated: July31,2024  B-2  Packet Pg. 69    EXHIBIT C Site Plan of Easement Area  C-1  Packet Pg. 70    2-0  @   -  9  )  (o)  Packet Pg. 71    REVISED APPRAISAL OF:  OMYOFGONAIES/CHUNN RANCH PARTIALTAKE-G GONZALES RIVER ROAD GONZALES, MONTEREY COUNTY AN224102422412.a1  REQUESTED By:  Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA93926  APPRAISALASOF:  May 8, 2024  APPRAISED By:  John W. Piini, MAI Greg Piini, MAI 263 Lincoln Avenue Salinas, CA 93901  Packet Pg. 72    PIINI REALTY  August 19, 2024 Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  Re: Appraisal Report - Chunn Ranch LLC Gonzales, Monterey County, California  Dear Mr. Dobbins:  Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as tot thet fair market value of one Sanitary Sewer Easement (SSE) and one Temporary Construction Easement (TCE) on a portion of the Chunn Ranch, locatedi tot the west of Gonzales, Monterey County, California. The Chunn Ranchi is owned by the Chunn Ranch LLCa and isi identified as Assessor's Parcel Numbers (APN): 4 223- These easements are being purchased by the City of Gonzales for an agricultural-industrial wastewater conveyance pipeline that is part of Gonzales' Industrial Wastewater Recycling Facility (IWRF) project. The SSEi is a 4.7+1 to12.8t foot-wide easement that encumbers 5,969t square feet. The TCE is an: 18.9+ to 42.5t foot wide temporary easement that runs along the northwest boundary of the property and encumbers 1.58t acres for a period of six months, commencing November 1, 2024, and continuing through. April 30, 2025. These easements are being purchased by the City of Gonzales for an agricultural- industrial wastewater conveyance pipeline that is part of Gonzales' Industrial Wastewater Recycling Tot farm the property outside the TCE, a new farm road will be necessary along the south side of the TCE during the six-month construction period. Afterward, thel land area within the TCE andi this farm road will bet too compacted to bei farmed. To restore this land to af farming use, additional time willl be required to rip, till and prepare these soils. An additional six months are added to the TCE and the land adjacent to Based on thei inspection of the property and thei investigations and analyses undertaken, we. have formed the opinion that as of May 8, 2024, ands subject to the assumptions and limiting conditions setf forthi int this  011-032 and 223-012-001. The ranch has a gross area of 181.2t acres.  Facility (IWRF) project.  the TCE1 to account for this loss.  report, total compensation fort the TCE and compacted land areas is as follows:  263 Lincoln Ave., Salinas, CA 93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 73    Mr. Patrick Dobbins  August. 19, 2024  Re: Appraisal Report- Chunn Ranch  Page ii  Fair market value of the parttaken as partoft the whole  $3,357  Damages & special benefits Damages Less: Special benefits Subtotal Value oft thel TCE Total value of the take  $0 $0  $o $4.865 $8,222  The appraisal report that follows consists of 48 pages and sets forthi thei identification oft the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results oft the investigations and analyses, andi the reasoning leading to the value conclusions.  Respertfulysubmittes, John W. Piini, MAI h  aphu  res  Certified General Real Estate Appraiser State of California, BREA No. AG044270  Greg Pini, MAI  Certified General Real Estate Appraiser State of California, BREA No. AG005214  Packet Pg. 74    TABLE OF CONTENTS  Transmittal Letter. Table of Contents. Introduction. Identification Extraordinary Assumption. Purpose of the Appraisal. Title. Property History. Property Rights Appraised. Client of the Appraisal. Intended Users. Intended Use of the Appraisal. Effective Date of the Appraisal.. Date of Report. Report Format. Exposure Time. Land Acreage Definitions. Scope of Work. Regional Description. Regional Map.. Location Map. Monterey County.. Gonzales Property Description. Aerial Photograph.. Assessor's Parcel Map. Subject Photographs. Location.  ili  10 10 10 11 14 15 15 15 16 17 Page iii  Appraisal Report - Chunn Ranch LLC  Packet Pg. 75    Access Land Area.. Irrigation Water. Building improvements Hazards. Food Safety Concerns. Assessed Valuation & Taxes Property Rights Land Use Policies Highest & Best Use. Valuation Comments. Certifications. Limiting Conditions Addendum  17 17 18 18 18 18 19 20 20 20 38 43 45  Error! Bookmark not defined.  Fair Market Value oft the Temporary Construction Easement.  Legal Description and Maps of the Permanent and Temporary Easements  Qualificatons of the Appraisers  Appraisal Report- Chunn Ranch LLC  Page iv  Packet Pg. 76    INTRODUCTION  IDENTIFICATION  This appraisali involves a partial take valuation of an agricultural farm property referred to as the Chunn Ranch. The ranch is owned by the Chunn Ranch LLC and is located to the west of Gonzales, Monterey County, California. The entire ranchi is 156.03t acres andi is identified as Monterey County Assessor Parcel The partial take consists of one Sanitary Sewer Easement (SSE) that encumbers 5,969t square feet and one Temporary Construction Easement (TCE) that encumbers 1.58+ acres for a period of six months, commencing November 1, 2024, and continuing through April 30, 2025. The public agency involved in this taking is the City of Gonzales as part of a project referred to as the Gonzales Industrial Wastewater  Number APN)223-011-036.  Recycling Facility (IWRF) project. EXTRAORDINARY, ASSUMPTION Irrigation Improvements  Irrigation wateri fori the Chunn Ranchi is provided from underground groundwater wells and underground irrigation pipelines. This appraisal is predicated upon the extraordinary assumption that the proposed easements and/ori the proposed construction project do not disturb any of thei irrigation: system andi ift the construction of the proposed conveyance line does affect any of the irrigation system, the construction project will repair and replace the affected irrigation improvements as a cost-to-cure item.  Environmental Hazards  An environmental assessment report was not provided, and we are not qualified to make such a report and/or environmental assessment. Without the benefit of an environmental assessment or hazardous material assessment report, this appraisal is predicated on the extraordinary assumption that there are no environmental conditions that adversely affect the value of the property. Therefore, this is an  "unimpaired valuation." Extraordinary Assumption Defined  An assignment-spec/fic assumption as of the effective date regarding uncertain information used in an analysis which, if found to bej false, could alter the appraiser's opinions or conclusions. 1  1 Uniform Standards of Professional Appraisal Practice (USPAP) 4 2018-2019 Edition. (The Appraisal Foundation,  2018).p.4.  Appraisal Report - Chunn Ranch LLC  Pages 5  Packet Pg. 77    PURPOSE OF1 THE APPRAISAL following steps:  The purpose oft the appraisal ist to estimatet the "fair market value" oft the real propertyi in accordance with California eminent domain civil procedure codes. As per California law the appraisal considered the  1. thei fair market value oft the property before thei take; 2. thet fair market value oft the part taken; 3. thet fair market value of the remainder as part oft the whole; 4. the fair market value of the remainder before considering special benefits;and 5. the fair market value oft the remainder considering special benefits.  However, because the partial take of the Chunn Ranch is limited to a TCE, the above steps are not applicable. The fair market value oft the property before the take (Step 1)i is the same as thei fair market value of the remainder considering special benefits (Step! 5). Therefore, the value oft the part taken is $0, there are no damages associated with the TCE, and there are no special benefits associated with this Therefore, these steps are omitted in this analysis. The fair market value of the TCE is predicated on an  project.  appropriate land rent overt the term oft the project.  Fair Market Value Defined  For the purpose of this appraisal, fair market value is defined as follows:  Thej fair market value of the property taken is the highest price on the date ofvaluationi that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity. for so doing, nor obliged to: sell, andab buyer, being ready, willing, and able tok buy but under no particular necessity fors So doing, each dealing witht the otherv withj full knowledge of all the uses and purposes  for which the property is reasonably adaptable and available.2  TITLE  According to the Monterey County Assessor's Office, titlei is vested as follows:  Chunn Ranch LLC.  California Code of Civil Procedure - CCP $1263.320 (Amended by Stats. 1992, Ch. 7, Sec. 2. Effective. January: 1,  1993).  Appraisal Report- - Chunn Ranch LLC  Page 6  Packet Pg. 78    PROPERTY HISTORY property.  There havel been not transfersofownership withini the past fiveyears. The propertyisr not currentlyoffered on the open market and we are not aware of any purchase options and/or agreements affecting the  PROPERTY RIGHTS APPRAISED Fee Simple Estate Defined  The property rights appraised is the fee simple estate.  Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police  power, ande escheat. 3  CLIENT OF1 THE APPRAISAL INTENDED USERS  The client of1 this appraisal is the City of Gonzales.  Thei intended users are the client and the fee owner of the property. The appraisers are not responsible for any unauthorized use of this report and are not responsible to anyt third-partyusers.  INTENDED USE OFTHE APPRAISAL  The intended use of this appraisal is for the client's use pertaining to the purchase of easements on the  subject property as part oft the IWRF project. EFFECTIVE DATE OF THE APPRAISAL  This appraisal assignment represents a current appraisal in which the effective date of the appraisal and  the valuation conclusion apply as of May 8, 2024.  DATE OF REPORT REPORT FORMAT  This appraisal assignment was conducted from Mayt to August of 2024.  The report is intended to comply withi the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of  Dictionary of Real Estate. Appraisal- 6th Edition. Appraisal Institute, 2015, p. 90.  Appraisal Report- - Chunn Ranch LLC  Page 7  Packet Pg. 79    discussion contained int this report is specific to the needs of the client and for the intended use stated  above. EXPOSURE TIME  The term "exposure time" is defined as  The estimated length of time the property interest being appraised would have been offered on the market prior to the "poletalconsummotion ofas sale at market value on the effective date  oft the appraisal.4  For the past several years, a strong effective demand exists fori irrigatedi farmland and ranch lands located within the Salinas Valley. Turnover is limited and much of the farmland that sells is sold without ever being offered on the open market. Those farms that are offered on the open market are generally under contract within 30 days and have a 90-day due diligence period. Farm properties that are on the market for more than six months are typically overpriced or have certain physical characteristics that limit their The Chunn Ranchi is a prime agricultural farm that would command: strong demand if offered on the open market. Assuming the ranch was offered near market value, an exposure time of 3 to 6 months is  appeal and increase their risk of ownership.  considered reasonable applied in this analysis.  LAND ACREAGE DEFINITIONS Gross Acreage  Several acreage classifications are used within this appraisal report and are defined as follows:  The gross area is the total land area of the property as legally described, or as indicated by the parcel maps. The gross acreage for this assignment is derived from the Monterey County Assessor Parcel Maps,  which are included in this report. Non-Usable Farm Acreage Usable Farm Acreage  The non-usable farm acreage is the land that does not provide a utilityt toi the property.  The usable farming acreage ist thet total acreage that provides a utilityt tot the property and includes the net  crop acreage, internal roads and yard areas that service thei farmable acreage.  41 Ibid.p p. 83.  Appraisal Report- Chunn Ranch LLC  Page 8  Packet Pg. 80    Net Crop Acreage  The net crop açreage is the net planted acreage, excluding the service acreage ofr roads, reservoirs, yard areas and any non-usable areas. Also referred to as the farmable acreage or green-to-green area, the net crop acreage ist the area growers utilizet for measuring crop production and growing costs.  Leased Acreage SCOPE OF WORK  The leased acreage is the acreage stated in the lease that is agreed upon between the lessor and lessee. John Piini has appraised the Chunn Ranch several times in recent years, with the most recent appraisal being in 2023. We also appraised the subject easements for the City of Gonzales in May of 2024. This report is an update toi the May 2024 report to only reflect a change int thei take areas. For the May 2024 assignment, the property was inspected on May 8, 2024. The inspection was from the ranch roads with the scope of observing the layout and general characteristics of the property. In addition to our inspection, we reviewed parcel maps, flood maps, aerial photographs and zoning maps of the property. The gross land area of the propertyi is obtained from the Assessor's Parcel Map. The land areas within the proposed take are obtained from the draft legal description and take exhibit prepared by Polaris Land The valuation oft the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records, Multiplel Listing Service MI5)data,on-linesubscriptionserices such as CoStar and LoopNet, real The results of the investigations and the analyses conducted are presented in this appraisal report, and  Surveying, a copy of which is included int the addendum oft this report.  estate appraisers, and brokers.  were prepared by. John Piini, MAI, and Greg Piini, MAI.  Appraisal Report- Chunn Ranch LLC  Page 9  Packet Pg. 81    REGIONAL DESCRIPTION  REGIONAL MAP  Marina Boronda  Chualar  soogh  LOCATION MAP  Gonzales Cityl Limits Boundary Subject Property Proposed Conveyancel Line Futurel Industrial Wastewater Recycling Faclity  Gonzales  Appraisal Report- - Chunn Ranch LLC  Page 10  Packet Pg. 82    MONTEREY COUNTY  Monterey County is oriented in a north to south direction parallel to the Pacific Ocean. Itis bounded on the north by Santa Cruz County, oni the south by San Luis Obispo County, ont the east by San Benito, Kings, The largest of the central coast counties, Monterey County has approximately: 100 miles of coastline along the Pacific Ocean and averages 30 miles in width. The county contains 3,324t square miles or2 2,127,360t About 439,000 people currently reside inl Monterey Countyas of1 the 2020Census, which isa5 5.7%i increase from the 2010 Census estimate of about 415,000. The majority of the county's population is located on the Monterey Peninsula and in the greater Salinas area. Over the past several decades, Salinas and the smaller Salinas Valley towns experienced the majority of the county's growth, as the price of land and housing is relatively affordable compared tot the Monterey Peninsula andt the neighboring Santa Clara and Santa Cruz Counties. During this same period, the population on the Monterey Peninsula remained relatively stable due to al limited: supply of land that is zoned and suitable for development. The physical and economic characteristics of the county are divided primarily between the Monterey Peninsula and Salinas Valley. The Monterey Peninsula communities of Pebble Beach, Carmel, Pacific Grove and Monterey aret tourist destinations fort the northwesterly portion. Tothe south of the Monterey Peninsula is the world-renowned Big Sur Coast. On the eastern side of the county lies the Salinas Valley,  and Fresno Counties and on the west is the Pacific Ocean.  acres.  one of the chief vegetaDle-producing regions int the United States.  Salinas Valley  The Salinas' Valleyi is at fertile agricultural region bounded to the east by the Gabilan Mountain Range and tot the west by the Santal Lucia Mountain Range. The valley begins at San Ardo and widens and stretches This valleyi is one of thep premier fresh vegetable growing regions int the country and a majority oft thes salad greens consumed in the United! States are grown here. Strawberries, head lettuce, leaf lettuce, broccoli, celery, artichokes, and a variety of other vegetable crops provide Monterey County with approximately $4.6 billion in gross sales. Due to the intensity and the variety of crops grown, the Salinas Valley is Within the 100-mile stretch oft the Salinas Valley are individuali farming districts, distinguished not only by location, but by farming characteristics associated with soil, climate and/or water. East-to-west, soil qualityprovides the distinction, as the soils on the valley floora are, for the most part, fertile claya and loamy soils that are well suited for growing a variety off fresh vegetable crops. Along the foothills of the Gabilan  approximately 100 miles tot the Monterey Bay, near Castroville.  nicknamed "America's! Salad Bowl."  Appraisal Report- - Chunn Ranch LLC  Page 11  Packet Pg. 83    Range (east side of the valley) and the Sierra de Salinas Range (west side) the soils are generally characterized by decomposed granite (DG)soils that formedi in alluvium from granitic and schistose rocks on alluvial fans and terraces. These soils are typically well-drained and suitable for growing a variety of crops; however, theys generally require al higher degree of farm management as compared to the soils on North-to-south, climate plays as significant role as the north end of the valley has a cool coastal climate, whereas the south end oft the valley is warmer and windier during the growing season. Due primarily to climate, agricultural rents are higher at the north end of the Salinas Valley as compared to the farmland ini the central and southern portion oft the valley. In recent years though, this gapi tightened duei in part to an expansion ofs seed varieties, enhancement in irrigation practices and the growth in the food service segment of the produce industry which has increased the demand for leafy green vegetables such as The economy of the Salinas Valley is centered around the agricultural industry, with irrigated row crops int the Salinas Valley, vineyards in the foothills of the Santa Lucia and Gabilan Ranges, and cattle grazing throughout the more mountainous areas of these Coastal Ranges. Agricultural crop values are significantly highertoday thanwhat existedad decade ago; however, the past few agriculture seasonsw were unusually challenging to the local industry. The COVID-19 pandemic, a relatively new increase in lettuce losses from Impatiens Necrotic Spot Virus (INSV) and Pythium wilt, continued labor shortages, increasing food safety regulations, the uncertainty of future water regulations under California's Sustainable Groundwater Management Act (SGMA), and risingi inflation andi interest rates havei impactedi the produce  the valley floor.  spinach and leaf lettuces that have shorter growing periods.  industry.  Appraisal. Report - Chunn Ranch LLC  Page 12  Packet Pg. 84    Salinas Valley Water  Water for the Salinas Valley is derived mainly through groundwater wells penetrating 100 to 1,700 feet into the Salinas Valley Water Basin. The Salinas Valley Basin has a single common aquifer that is divided into six hydrologically interconnected subbasins known as the 180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Forebay Aquifer Subbasin, Langley Area Subbasin, and Monterey Subbasin. These basins are depicted in the mapi to the right. These basins are recharged by the Salinas River and its tributaries, winter rain runoff from the bordering Gabilan and Sierra de Salinas Mountain ranges, and dam water discharges from the Nacimiento Reservoir (constructed 1955) and the San Antonio  EXPLANATION  Reservoir (constructed 1963). These natural and man-made sources feed the basins; however, it is not enough. The Salinas Valley, especially ati the north end, extracts more waterthan is replenished, resulting Over drafting of groundwateri is not unique toi the Salinas Valleyl but is occurring throughout California. As aresult, California passed the Sustainable Groundwater Management Act (SGMA) in 2014, which requires California governments and water agencies to developa a Comprehensive Groundwater Sustainabilityl Plan (GSP), which wille establish the means and methods of achieving water sustainability, and then implement the GSP and achieve basin sustainability within 20 years after approval oft the GSP. In the Salinas Valley, the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) is aj joint powers authority that was Each subbasin's GSP was approved in 2022. The approved GSP's indicate that the northerly four basins (180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Langley Area Subbasin, and the Monterey Subbasin). arei ina an overdraft condition, whilei the two southern basins (Forebay Aquifer and Upper Valley  inseawater intrusion and a shrinking water supply amongst the older shallow wells.  established to fulfill the requirements of SGMA.  Aquifer) are ina al balanced state.  The Chunn Ranch is withint the 180/400 Foot Aquifer.  Appraisal Report - Chunn Ranch LLC  Page. 13  Packet Pg. 85    GONZALES  Gonzales is centrally located within the Salinas Valley and is approximately 15 miles south of the City of Salinas. The town has a population of8 8,439 peoples. Overi the past several decades, thet town has grown as its proximity to! Salina andi its lower relative price of housing has brought an influx of commuter-Dased  residents; however, the town remains an agricuitural-Dased community.  SU.S. Census Bureau. 2022 Population Estimate Program (PEP).  Appraisal Report- - Chunn Ranch LLC  Page 14  Packet Pg. 86    PROPERTY DESCRIPTION  AERIAL PHOTOGRAPH  APN223-011-032  APN223-012-001  Google Earth ASSESSOR'SPARCEL MAP  TACODE AREA oNZAL BoOR  COUNTY CP MUNIEKET ASSESSORS MAP BOOK 223 PAGEOI  03  BCAr STATE LAIGHWAY  INa 101 02 @IAE pM  Os  linde  Orann SAMeNa SSES: DE LA AVENTE Ax HONTERO SASCASISIZ 1BAL 1842 IBASIBAE 1808 Th 33, AUTYaNS OF 18Bf34 14N MAP OF AE GOMZALES ESTATE LOTSITHRU. ME 12 THRUIZ, 82/ SOTWRUSO. ASSRS: AP GUADALUPE &o Lors 26 32f33.  PARA,  Appraisal Report- - Chunn Ranch LLC  Page 15  Packet Pg. 87    SUBJECT PHOTOGRAPHS  Northerly view from Gonzales River Rds showing well Farming block south of Gonzales River Rd  Short Road  West boundary and area of SSE & TCE  North boundary and area of TCE  Appraisal Report- Chunn Ranch LLC  Page 16  Packet Pg. 88    LOCATION  The Chunn Ranch is located about 1% miles west of Gonzales, approximately 12% miles to the south of Salinas and 8% miles toi the north of Soledad. The ranch is on the north side of Gonzales River Road and This location is within ani intensive farming district oft the Salinas' Valley that is characterized by fertile: soils, an ample supply of water and a temperate coastal climate. Most of the farmland in this area is double The property is mostly surrounded by farmland that is used for irrigated row crops; however, the west end oft the ranch adjoins ac commercial compost yard and the Gonzales wastewatert treatment facility.  tot the east of Short Road and the Salinas River.  cropped annually for a variety of fresh vegetable crops.  ACCESS  Access is provided by Gonzales River Road and Short Street.  Gonzales River Road  Gonzales River Road is at two-lane, two-directional county road that extends from Alta Street in Gonzales  to River Road, with al bridge crossing over the Salinas River.  Shorts Street  Short Street is a two-lane county road extending some 760 feet north of River Road and extends along the southwest end of the property. Short Street provides access toi the Gonzales sewer and wastewater  facility and toi the adjoining compost yard.  LAND AREA  The ranch is situated on an upper bench oft the Salinas Valley. The Assessor's Parcel Mapi indicates ag gross land area of 176.98 acres; however, a 1984 "Property Line" map indicates a gross area of 181.2+ acres, which is consistent with estimates from Google-Earth. Without a survey of the property, this appraisal The property is bisected by Gonzales River Road. The main body of the ranchi is ont the northwest side of the county road and contains 173.2+ acres. On the southeast side of the road is an oblong shaped field of about 8.0t acres, as per the Assessor's map. This small parcel is bounded to the north by Gonzales  assumes a gross land area of 181.2t acres. The entire ranchi is considered usable.  River Road and to the south by the Salinas River.  Soils & Topography  The soils ont this ranch are Class 1and 2 clay loam soils that have al levelterrain anda ares suitablei forg growing  a variety of fresh vegetable crops. The soils are. summarized: as follows:  Appraisal Report - Chunn Ranch LLC  Page 17  Packet Pg. 89    Soil Summary Soil Symbol Soil Name CnA MnA SbA Totals IRRIGATION' WATER  Approx Approx % Acres 141.3 23.6 16.3 181.2  Slope Oto2% Oto2% Oto2%  Class 2 1 1  ofRanch 78.0% 13.0% 9.0% 100.0%  Cropleys siltyo clay Mocho silt loam Salinas clayl loam  Irrigation water is provided from two groundwater wells. According to the tenant, the wells provide an  adequate amount of water, and the water quality is good.  BUILDING IMPROVEMENTS andi in fair condition. HAZARDS Flood Hazard  The property is improved with a 1,100-square-foot residence, a4 400sf bunkhouse, a 2,000sf horse barn, and an implement shop. The buildings are approximately 90+/- years old, are of low-cost construction  The ranch is identified on FEMA's Flood Insurance Rate Map (FIRM) panels 06053C0414G and 06053C0600G, both dated April2, 2009. These panels indicatei that the ranchi is located within Zone) X, an  area outside the 0.2% annual chance floodplain.  Seismic Hazard  The property is located within a seismically active area of California but is not located within a Alquist- Priolo Special Studies Zone. The nearest fault is the Reliz Fault, which runs along the base of the Santa  Lucia Mountain Range, about 2.0t miles west of thes subject property.  FOOD SAFETY CONCERNS  The property is within 1,0001 feet oft the Gonzales sanitation ponds and a commercial composty yard. These neighboring uses could be a source of e-coli bacteria, which could result ina a restriction on growing leafy green vegetables on portions of the Chunn Ranch. Buffer zones between potential sources of e-coli bacteria and leafy green vegetable crops vary throughout the industry depending on i) the source of potential contamination, ii) requirements of agricultural buyers, and ii) analysis of each individual farm  andi farming block.  Appraisal Report- - Chunn Ranch LLC  Page 18  Packet Pg. 90    The Leafy Green Marketing Agreement (LGMA) sets minimum requirements that generally range from 30 to 400 feet depending on the source of potential contamination, but some agricultural companies and buyers required considerably greater buffer zones. These buffer zones have generally increased over the past decade and the number of crops allowed within these buffer zones have decreased. As these buffer zones expand, the effect on farmland values willl likely follow as properties without food safetygrowing limitations willl be more desirable as compared' to properties with crop limitations because According to the tenant on the Chunn Ranch, they are currently not under any growing restrictions because of the sanitation ponds and compost yard. However, these neighboring uses are of concern as  of food: safety concerns.  some of the nearby properties are being placed within buffer zones.  ASSESSED VALUATION &1 TAXES Assessed Valuation &1 Taxes  The assessed valuation and real estatei taxes for the 2023-2024 tax year are: summarized as follows:  Assessed Values Improvement  2022-2023 Toxes Countywide &  APN 223-011-032 223-012-001 Total Average tax rate Average per usableacre  Land Value $1,070,135 $77.382 $1,147,517 $6,510  Value Total Value Direct Charges Agency Taxes Total Taxes $32,165 $1,102,300 $6,817.82 $12,603.42 $19,421.24 $32,165 $1,179,682 $7,329.08 $13,488.16 $20,817.24  $0  $77.382  $511.26  $884.74 $1,396.00 1.14%  $114.89  Farmland Security Zone Contract  The ranch is subject to a Farmland Security Zone (FSZ) Land Conservation Contract (LCC) with the County of Monterey. LCCs are often referred to as' Williamson Act Contracts, which in California provide taxi relief to agricultural property owners who contract with their county to restrict the use of the property during As standard LCCi is a minimum of 10 years and under this contract the assessed valuation is predicated on the agricultural income value of the property. An FSZ has a 20-year term and under this type of contract, the assessed valuation is based on 65% oft the California Proposition1 136valuation or Wlamsonvyaluation, 6In1 1978 California voters approved Proposition 13, which limits the maximum amount of any ad valorem tax on real property to one percent (1%) of the assessed value plus approved bonds and assessments; and it placed a maximum of 2%p per year that the assessed value could increase, unless thep property has a change of ownership.  the contract period to agricultural and open space use.  Appraisal Report- - Chunn Ranch LLC  Page 19  Packet Pg. 91    whichever is less. All land conservation contracts automatically renew annually for an additional year,  unless either party files a "notice ofnon-renewal".  PROPERTY RIGHTS  A preliminary title report was not provided; however, we are aware of an existing sanitary sewer easement (Reel 1831, Page 456 of Official Records) that runs along the northwest boundary of the  property and within the vicinity oft the proposed TCE.  LAND USE POLICIES  The Chunn Ranch is located within an unincorporated area that is under the land use jurisdiction of Monterey County. The ranch is located within Gonzales' sphere of influence but outside of the urban growth boundary and outside of the City's permanent agricultural edge, which runs along the city limits boundary in the vicinity oft the subject propertya and would preclude expansioni tot the west. The ranch is designated as' "Agricultural" byt the Monterey County General Plan. Agricultural lands willi fall within the three land use categories, and the Chunn Ranchi is categorized as Farmlands. The General Plan  defines Farmlands as follows:  Farmlands (F): Farmlands are typically 40-acre minimum sites, and allow a range of uses to conserve and enhance the use of the important farmlands in the County of Monterey while also providing opportunity to establish necessary support and ancillary, facilities for those agricultural  uses,  Consistent with the General Plan, the Chunn Ranch is zoned Farmlands (F-40). The minimum parcel size  requirement for creating a new parcel is 40 acres. Highest and best use is defined as follows:  HIGHEST & BEST USE  The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial  feasibility, and maximum productivity."  As/fVacant  The propertyi is located within an intensive farming district of the Salinas Valley where the historical use oft the subject property and adjoining properties are dedicated to an irrigated row crop agriculturaluse.  Dictionary of Real Estate Appraisal- - 6th Edition. (Chicago: Appraisal Institute, 2015)p. 109  Appraisal Report- - Chunn Ranch LLC  Page 20  Packet Pg. 92    Land use policies are also oriented toward an agricultural use and a change to any other use is not Therefore, the highest and best use oft the propertyi is agriculture and the most probable agricultural use  projected within thei foreseeable future.  is irrigated row cropi farming of fresh vegetables.  As Improved  The irrigation wells and pipelines support the highest and best use ofi the land and their value is included Building improvements are limited to several older farm buildings. The buildings provide utility to the  int the underlying land value.  agricultural use and support the highest andl best use of thel land.  VALUATION COMMENTS  The purpose oft the appraisal ist to estimate the "fairr market value" oft the real propertyi in accordance with California eminent domain civil procedure codes. As per California law the valuation process involves  several steps which are: summarized as follows:  1) thei fair market value oft the property before thet take; 2) the fair market value oft the part taken; 3) thei fair market value oft the remainder as part of the whole; 4) thei fair market value ofi the remainder before considering special benefits; and 5) thei fair market value oft the remainder considering special benefits.  Appraisal Report - Chunn Ranch LLC  Page 21  Packet Pg. 93    FAIR MARKET VALUE OF THE PROPERTY BEFORE THE TAKE  The sales comparison and income approach are used to estimate the fair market value of the property, which aret the two common methods utilized int the valuation of Salinas Valley farmland. In applyingthese appraisal methods, the components of value include the land and the land improvements, which consist ofthei irrigation wells, pumping plants andi irrigation pipeline. Int the Salinas Valley, thecontributoryvalue of the land improvements is included in the land value and the common unit of measurement for In the sales comparison approach, an opinion of value is derived by analyzing and comparing similar properties that have recently sold, are listed for sale, or are under contact. AI major premise of the sales comparison approach is that the market value of a property is related to what is being paid for Thei income approach is applicable: as Salinas Valleyi farmland is commonly renteda and therei is a veryactive market of real estate investors. From an investor's point-of-view, earning power is the critical element affecting property value. One basic premise of this approach is that the higher the earnings, the higher The most common income valuation technique is the direct capitalization method, which employs the  comparison purposes is the price per usable acre.  comparable, competitive properties.  the value, provided the amount of risk remains constant.  following relatively simple algebraici formula:  Income /Overal! Rate = Value  The income is the market rental value of the farmland and the overall rate represents the rate of return that is being obtained within the marketplace for similar properties. This approach is commonly applied int the Salinas Valley by the market participants. Even buyers who intend to farm the property consider value based on the relationship between a propertyseconomic rental value and the price to be paid.  SALES COMPARISON APPROACH indicative of value:  Inapplying the sales comparsonapproach, thet following sales arej judged to be the most comparable and  Appraisal Report - Chunn Ranch LLC  Page 22  Packet Pg. 94    Summaryo ofFarmlands Soles Saler number Ranchname Saledate Location Nearestcity Grantor Grantee Gross acreage Nonf farmableacreage Other landu usea acreage Usablea andi irrigatedf farmacreage Salep price  Wing Massa 305.7 0.0 02 305.7  Wimer  Harney  Vosti  Nielson  Herold Breschini  Hunter Salinas Rochal 82.8 0.0 p.0 82.8  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 10/27/2023 6/30/2023 Chualar Cyn Rd Highway 101 SpenceRd River Rd OldStageRd Altas Street Hwy1 101 Hunter Lane Yellow) Juliet Gill S Hitcock Springbrook D'Arrigo C.M.N Nielsen Ptn D'Arrigo Caprara  Chualar Chualar Chualar Gonzales Wimer Clayton 138,6 5.0 0.0 133.6  Salinas Gonzales Soledad Vosti C.M. Nielsen Ptn Meyers Breschini Duckworth  147.0 1.0 po 146.0  95.4 0.0 0.2 95.4  188.5 0.0 12 187.5  560.4 0.8 21.6 538.0  179.7 50.7 0.0 129.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $10,000,000 $7,200,000  Price per usableacre (land8 &i impr) $60,500 $61,200 $64,700 $66,000 $68,700 $77,100 $77,500 $87,000  Sales Location Map  GoogleEarth  Appraisal Report- - Chunn Ranch LLC  Page 23  Packet Pg. 95    Sale. 1: Wing Ranch, Chualar The Wing Ranch is located on the east side of Highway 101, just north of Chualar and approximately 7 miles southeast of Salinas. This is within an intensive agricultural area where most of the farmland is dedicated to The property has a level topography with Placentia sandy loam and Chualar loam soils. These are decomposed granite (DG) soils that  row cropi farming.  are inferior tot those on1 thes subject property ast they require ar relatively high degree of farm management. The entire property is usable with several wells that are interconnected with underground high pressure irrigation lines. According to the seller, the wells were in good condition and provided adequate water The property was not on the open market and there was limited market exposure. Thei tenant was at the end of their lease term and the property sold to an investor who renewed the leased with the existing tenant. The new lease was for at three-year term at a rental rate that is confidential. The contract rent, though, is near market, which, int this area, variest froma about 52200t052,600peracei includingproperty  with a good water quality,  taxes. The property sold for $18,500,000, or $60,500 per acre.  Sale 2: Wimer Ranch, Chualar The Wimer Ranch is located oni the east side of Highway 101, between Chualar and Gonzales and about 9 miles south of Salinas. The ranch has direct north and southl bound access tothe highway. This location is within an intensive agricultural area where most of the farmland is dedicated to row crop farming.  This property has an irregular shape as the Goopklanh  northerly boundary oft the ranch borders an open reclamation ditch. The usable land areai is 133.64 acres, and the net crop area is 128t acres. The soils consist of Salinas loam (SaA) and Salinas clay loam (SbA), which are Class 1 soils suitable for growing a variety of crops. Irrigation water is provided from one well that yielded about 12 gpm per net acre. Building improvements include one 1,800 square foot pre- engineered agricultural utlitystoragebulding The building is about 30years old, ofaverage quality, and  Appraisal Report- - Chunn Ranch LLC  Page. 24  Packet Pg. 96    ingood condition. According to the buyer, the building contributed: an added value.  The property was not on the open market and: sold directly to the long-term tenant for $8,174,000. An allocation of $74,000 is applied to the shop building and $8,100,000 fort thet farmland which equates toa  rounded land value of $60,600 per usable acre. Sale 3: Harney Ranch, Chualar Thel Harney Ranchi is located 4.21 miles south of Salinas and 3 miles north of Chualar. The property fronts the south side of Spence Road, between Highway 101 and Old Stage The property has al level terrain, andi the soili is Chualar loam with a 01 to 2% slope. Irrigation water is provided from two wells with a combined capacity of 2,500 gpm plus there was ai third well used mostly for dust control  Road.  and for the buildings.  The propertyl had been leasedi to Tanimura and Antlei fors several decades. At1 thet time ofsale, the property was farmed in strawberries and vegetables. According to thet tenant, during the 2021 and 2022 seasons this ranch suffered heavy losses to their late summer and falll lettuce crops because oft the INVS virus. Att thet time ofsale, the property was subject toa at three-year Lease with one year remaining and onet three- year option to renew. The contract rent, including property taxes was $2,490 per usable acre. This property was offered for sale in June 2023 at an asking price of $9,900,000. The demand for the property was limited due in part to the INVS virus, and the increase in interest rates. Piini Realty represented the buyer, who is al local strawberry grower, and purchase price was $9,450,000. The buyer was able to take over the farming operation at the end oft the 2023 season and intends to transition the  ranchi to organicwiths strawberries being the primary crop.  Appraisal Report- - Chunn Ranch LLC  Page 25  Packet Pg. 97    Sale 4: Vosti Ranch, Gonzales The Vosti Ranch is a 95-acre row crop ranch located on the south side of Gonzales River Road, adjacent to the city limits of Gonzales. The land uses include irrigated row crop farming on the properties outside the city limits and industrial for the adjoining properties within the city limits. The Gonzales General Plan identifies the Vosti Ranch as being within their sphere-ot-influence for future industrial use. Developing this property  for industrial, though, is problematic as a condition of development would likely require constructing a This property has level, Class 1 and 2 soils that are considered prime and very similar to the subject property and suitable for a wide variety of fresh vegetable crops. Irrigation water is provided from a 38.23% interest in two wells that are shared between the Vosti Ranch and the neighboring property to the south, which has a 61.77% interesti in each well. Buldingimprovements include one olderi farmhouse, two old barns, and two older farm labor houses. Thei improvements were in poor condition and did not The property was listedi fors sale with Piini Realty; however, at the request oft the sellers, it was only offered toi thet tenant and the adjoining owner, and was purchased by the long-term tenant. The purchase price was reflective primarily of the property's agricultural use. The buyer and seller considered industrial development as being a long-term speculative use and the buyer was motivated to sell the property in  new SPRR crossing, which would require SPRR's permission.  contribute an added value.  2020.  Sale 5: Nielson Ranch, Salinas The Nielsen Ranch is located about 5 miles south of Salinas on the east side oft the Salinas Valley, adjacent to the base of the Gabilan Being at the base of this mountain range, the farmland in this area is characterized by decomposed granite soils that are abrasive on equipment and require a higher degree of farm management as compared to the Appraisal Report- - Chunn Ranch LLC  Mountain Range.  Page 26  Packet Pg. 98    farmland along the valley floor of the Salinas Valley. The primary crops grown in this area are fresh vegetables. Strawberries are also grown in this area; however, this is at1 the southern fringe for berries. The water resource at the base of the Gabilan Range is limited as this Eastside Aquifer relies primarily on winter rain runoff from the Gabilan Range and less from the Salinas River. Groundwater wells in the Eastside Aquifer are mostly developed to about 500 to 800 feet and the better producing wells are generally found at the westerly end of this area. The primary groundwater well for the property was developed in 2001 and improved with a 300 hp pump and a VFD motor. During the past few years this well was drawing sand and sandi filters were installed to mitigate thes sand clogging the sprinklers and drip emitters. A1950 well, which was equipped with a 300hp diesel motor, was al backup well though it was The Nielsen Ranch contains a gross land area of 187.5 acres and a net farming area of 176 acres. The terrain is gently sloping, and soils are decomposed granite, composed mostly of Chualar loam. The property has been mostly farmed for vegetable crops, with occasional rotations of strawberries. This property was offered for sale in May 2021 by Piini Realty and the offering included an adjoining 1- acrep parcelthat wasi improved with an oldersingle-family dwellingt that wasi ing good condition. In addition, the offering took into consideration a potential tax savings if a buyer were to acquire the existing partnership, avoiding reassessment. Maintaining the existing taxes saves approximately $65,000ayear, which was estimated to contribute approximately $400,000 in value based on the present value of the The property went into escrow with the long-term tenant at $13,600,000. During escrow, the main irrigation well started drawing sand. It was believed that a new well would be necessary within the next five years, and a $223,350 credit was provided to the buyers. The credit was assumed to be 50% of the cost of a new well. An additional credit of $5,000 was provided to the buyers for the cost of removing The final sale price for the farmland and residential parcel was $13,371,650, allocated as follows:  relatively highi in: salts.  income for 10 years at 10%.  personal property from the residential property.  Sale Allocation Description Farmland Residential parcel Totals  Acres 187.5 1.0 188.5  Price $12,876,650 $495.000 $13,371,650  Price/Acre $68,675 n/a $70,937  Appraisal Report - Chunn Ranch LLC  Page 27  Packet Pg. 99    Sale 6: Herold Ranch, Gonzales The Herold Ranch involves 560.4 acres of prime farmland located ont the wests side oft the City of Gonzales, extending toward the Salinas River and Gonzales' wastewater treatment facility. The ranch is located tot the immediate north oft the subject property. The farmland is on two benches, with 430t acres of upper bench farmland that has a  uniform Cropley silty clay soil, 130t acres on a lower bench with sandier soils, and 0.8t acres on a bank that separates the two benches. The upper bench acreage includes 21.6t acres that are located within the city limits of Gonzales and zoned industrial. The 538.8t acres situated outside the city limits are subject to an Agricultural Conservation Easement and al Farmland Security Zone Contract. Five wells provide irrigation water tot the ranch witha a combined capacity of5 5,550 gallons per minutei that There are two building yards on the ranch. At the northeast corner and situated within the city limits of Gonzales is a 60t-year old labor camp that is commercially operated as an H2A facility and permitted for 120 beds. Thel labor camp! hast four doumlovreluldnesamolerancebamiyawtine. a commercial kitchen-dining room, restroom, and laundry facilities. Based on bedroom sizes and the H2A requirement of one bed per 50 square feet, this facility could possibly accommodate 141 beds. City water and city The second building yard is an agricultural yard improved with an older, low-cost single-family dwelling, wood barn and an equipment shed. These improvements provide utilityt to thet farming operation but did The property was leased through October 31, 2020, at a gross rent of $2,070 per acre. Market rents in the immediate area at the time ofs sale varied from about $2,000 to $2,500 per acre, including property taxes. Turnover of prime farmland in the Gonzales area is rare as most tenants have a long-term relationship withi their landlord, and landlords in general are not overly aggressive on lease renewals. The Herold Ranch was offered ont the open market by Piini Realty in September 2019. Several offers were received and the property sold for $41,500,000 in. January 2020. The buyers allocated $5,000,000t tot the  is distributed by underground high-pressure lines.  sewer: serves the labor camp.  not contribute an added value.  21.6 acres of industrial-zoned land and the labor camp, summarized as follows:  Appraisal Report - Chunn Ranch LLC  Page 28  Packet Pg. 100    Sale price Farmland allocation Usablei farma acres Price per usable acre (rounded)  $41,500,000 $5.000.000 $36,500,000 538.00 $67,800  Less:E Buyer allocation toi industrially: zoned lands andi farm labor camp  Sale 7: Breschini Ranch, Hwy101, Soledad The Breschini Ranch is a 2023 farmland sale located on the west side of Highway between Soledad and Greenfield. Access is provided from a paved frontage road to Highway 101. Irrigated row crop farming is the primary use int the general area oft the sale and agricultural rents vary from about $1,500 to $1,800 per acre, including property taxes.  GobgeEarth  This property has ag gross land area of about 180 acres and extends from Highway: 101 tot the Salinas River. Approximately 50 acres are in the river and the usable land area is 130t acres. The soil consists of about 75% Elder sandy loam and 25% Arroyo Seco gravelly loam. These are well drained soils that formed in granitic alluvium and sedimentary rocks. Irrigation water is provided from two groundwater wells and reportedly the water quantity is abundant, and the quality is very good. Building improvements include an older single-family dwelling and several outbuildings, alli in very poor condition and unoccupied. This property was not on the open market and sold directly to the tenant, who farms and owns several other properties int thei immediate area. The property: soldi for $10,000,000, which is an exceptionally high price compared to other sales and agricultural rents. Applying a relatively high gross rent of $1,800 per acre, the net return after property taxes is 1.5%, which is one of the lowest rates of return in the Salinas Valley. In the final analysis, this sale is excluded as direct market comparable as it is considered an  aberration within the market and not indicative of market value.  Appraisal Report - Chunn Ranch LLC  Page 29  Packet Pg. 101    Sale 8: Hunter Lane Ranch, Salinas The Hunter Ranch is located 0.7 miles southwest of Salinas and is within the Spreckels District of the Salinas Valley. The Spreckels Districti ist bounded by! Highway 68to the west, the Salinas River and the town of Spreckels to the south, Abbott Road and Highway 101 to the north and the Salinas River and the former Firestone plant representing the easterly end.  This areai is known for its loamy soils, good water quality and a coastal climate suitable for strawberries and a variety of Salinas Valley vegetable crops including late-summer lettuce. Rents in this area trail slightly behind the Blanco area and range from about $3,500 to $4,000 per acre. Similar to the Blanco This property is situated on the south side of Hunter Lane and has a rectangular shape and level topography. The soil is mostly composed of Salinas series soil, which is a prime soil with few limitations and capable of growing a wide variety of fresh vegetables and strawberries. The property is improved with one older groundwater well that was developed in 1963 to a depth of 2561 feet and one older single- family dwelling. The well casing is deteriorating and will need to be replaced within a few years. The estimated cost to develop a new well into the 400-foot aquifer was $320,000, which the buyer plans to do. The dwelling was inj poor condition andi the buyer anticipates spending about $100,000 to $150,000 on housei improvement repairs after the sale and then use the house fore employee housing. In the as-is The property was leased for at three-year term with ai termination date of October 31, 2025. The gross The property was listed with Piini Realty in April of 2023 at an asking price of $90,000 per acre, was under contract at the beginning of June, and closed escrow on. June 30th1 for $87,000 per acre. While the buyer isal local strawberry grower, they intend to continue leasing the property tot the existing tenant as their The buyers intendi to entert the property intoal Farmland Security Zone contract and spend about $320,000 on capital improvements fora a new well resulting in at total investment of $7,520,000. Based on the lease terms and projected property taxes, the overall rate of return is about 2.9% in Year 1 and increases to  District, farmland turnovers int the Spreckels District are rare.  condition of the dwelling, it did not contribute an added value nor a cost to remove.  rent obligation of1 the tenant was $3,600 per acre.  motivation is for al long-term passive investment.  about 3.5% in Year3.  Appraisal Report - Chunn Ranch LLC  Page 30  Packet Pg. 102    Sale Adjustments Property Rights Conveyed  The Chunn Ranch is not subject to an agricultural conservation easement whereas Sale 6is subject to an agricultural conservation easement. However, the easement did not affect the sale of this property, and  ap property rights adjustment is not applied.  Financing Terms warranted. Conditions of Sale  The sales either involved cash sales or conventional financing. A financing terms adjustment is not  The sales were all arms-length transactions and a conditions of sale adjustment is not warranted.  Expenditures After Sale  Sales 5a and 8 will require new wells. The buyer of Sale! 5 was credited $223,350 in escrow for halfi the cost ofa new well. This credit is added to the purchase price as an after-sale expenditure. The cost of a new well on Sale 8 was estimated at $320,000, which is added as an after-sale expenditure.  Market Conditions  The sales occurred between January 2020 and September 2023. During this period, interest rates and inflation were increasing, and agricultural rents were eneralyappreciating at a rate of 2.0%1 to 3.0% per year. During this period, two relatively similar properties sold, providing a direct indication as to the change in farmland prices. A paired sale comparison between the 2020 purchase of the Wing Ranch (Sale  1)and the 2023 sale of the Harney Ranch (Sale 3)i indicates thet following:  Market Conditions Adjustment Sale number Ranchr name Area Sale date Usablefarmacreage Farmland allocation per acre Agricultural adjustment Adjusted farmland alloc/acre Annual % change  1 Wing Chualar 11/2/2020 305.7 $60,517 0.0% $60,517  to  3 Harney Chualar 9/5/2023 146.0 $64,726 0.0% $64,726  Difference  2.84  7.0% 2.4%  Appraisal Report- - Chunn Ranch LLC  Page. 31  Packet Pg. 103    Based inj part ont the above an annualt time adjustment of 2.5%i is applied tot the 2020t to 2022: sales through the end of 2023. An adjustment, though, is not applied to Sale! 5, which sold in 2021 at al high price that isc considered indicative of current market conditions. AI market adjustment is also not appliedi tot the 2023 sales as they are considered indicative of market conditions as oft the valuation date.  Agricultural. Adjustment  The agricultural adjustment pertains to the difference in soil, water and climate between the sales and thes subject. The adjustments applied are predicated on internal comparisons betweenthese sales as well as a comparison of rental values. The following paired sale comparisons are considered in determining  appropriate agricultural adjustments.  Location Adjustment Sole Comparison #1 Sale number Ranchname Area Sale date Usablef farma acreage Farmland allocation pera acre indicated % difference Sale Comparison: #2 Sale number Ranchname Area Sale date Usablef farmacreage Farmland allocation per acre Market conditions adjustment Adjusted price per acre indicated % difference Size  1 Wing Chualar 11/2/2020 305.7 $60,500  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 9.2%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 12.1%  8 Hunter Salinas 6/30/2023 82.8 $90,876 0.0% $90,876  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 7.9% $71,284 -21.6%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 10.0% $74,619 -17.9%  Generally, there is ani inverse relationship in unit prices based on size; however, ini the Salinas Valley there is typically not a significant per-acre difference for farm properties. Institutional investors and many growers prefer 200 to 500 acres to 20 to 100 acres because of economies of scale and the efficiency of farming al larger property. Therefore, a size adjustment is not applied to these sales.  Appraisal Report - Chunn Ranch LLC  Page 32  Packet Pg. 104    Sale Adjustment. Summary  Thei following tables summarize the adjustments applied tot the sales.  Adjustment Summary Sale number Ranchr name Saled date Location Nearesto city Usablefarma acres Salep price Non-farmland: allocations Farmlanda allocation Propertyr rights adjustment Adjusteds salep price Expenditures after sale Adjusteds salep price Adjusted pricep per usablea acre Market conditions adj. @2.5% Adjusted price per usablea acre Agricultural: adjustment Adjusted price per usablea acre (rnd $71,800  Wing Wimer Chualar Chualar 305.7 133.6 $0 $74.000 $o $0 $60,517 Z.9% $65,304 10.0%  Harney  Vosti  Nielson  Herold  Hunter Salinas 82.8 so SQ  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023  Chualar CynRd Highway1 101 SpenceRd  River Rd Olds Stager Rd Alta Street Hunter lane  Chualar Gonzales 146.0 $0 $0 $0 $64,726 0.0% $64,726 10.0% $71,200  Salinas Gonzales 187.5 $0 $495.000 $5.000.000 $Q -$400.000 $o $223.350 $66,038 $65,093 7.9% 0.0% $71,284 $65,093 0.0% 7.5% $71,300 $70,000  95.4  538.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $11,981,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,205,000 $36,500,000 $7,520,000  $o $O $61,718 5.6% $65,190 7.5% $70,100  $0 $O $320.000 $67,844 $90,876 10.0% 0.0% $74,619 $90,876 0.0% -20.0% $74,600 $72,700  The above table provides an adjusted range of $70,000 to $74,600 per usable acre. Sale 6 provides the highest indication, but this is alsot the oldest salei included ini this analysis and considering the more recent sales, al lower value is appropriate. The remaining sales provide a range of $70,000 to $72,700 per acre from which a value of $71,500 is concluded for the Chunn Ranch from the sales comparison approach.  Hence, Land area (acres) Land valuey per: squaret foot Land valuet fromt the sales comparison approach Rounded to nearest $1,000  181.2 $71,500 $12,955,800 $12,956,000  Appraisal Report- - Chunn Ranch LLC  Page. 33  Packet Pg. 105    INCOME APPROACH  The income approach is based upon the economic principle of anticipation that value is created by the expectation of benefits to be derived in thei future. There are a variety of income approaches, of which the Direct Capitalization Method is employed for estimating the fee simple land value. The Direct Capitalization Method applies an overall capitalization rate to a single year's net operating income (NOI). By dividing the NOI by an appropriate capitalization rate, the value estimate by the income approach is derived. This is an appropriate method when the income: stream, either actual ore estimated, is generated  by rentalr rates at or near thet fair market level.  Gross Market Rent value is defined as:  Thet first stepi in applying the income approach requires estimating the market rental value. Market rental  The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions ofaspecified lease agreement, including the rentald adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and  purchase options, and tenant improvements (TI's).8  Int the Salinas' Valley, most leases are written on a net basis witht thet tenant responsible for property taxes. If property taxes were relatively similar amongst agricultural properties, the economic rent would be derived strictly from comparing net rents. However, because of California's Proposition 13 tax code and CSIP fees, the assessed valuation amongst properties can vary depending upon when the last transfer occurred or whether iti is within CSIP. Hence, property taxes are not consistent from one property to the next, and to accurately compare the rental value of properties the appropriate unit of measuring is the Ine estimating the gross market rentalvalue, we conducted ani investigation intoa agricultural rents involving irrigatedi farmland located int the central portion oft the Salinas Valley. The general area oft this market rent  "gross rent" paid byt the tenant, which consists oft the net rent and property taxes.  investigation is depicted in thei following:  8 Dictionary of Real Estate Appraisal- - 6th Edition, Appraisal Institute;p. 140.  Appraisal Report - Chunn Ranch LLC  Page 34  Packet Pg. 106    Google! Earth  Within the area depicted above, 11 comparable leases are considered in estimating the market rental value of the subject property. Duei toi the confidential nature of leases, the parties and/or properties are  not specifically identified, but are: summarized as follows:  Summary of Comparable Farm Leases Lease No. Area  Soil Summary 0%/100%/0% 09/100%/0% 17%6/8196/2% 09/1009/0% 096/100%/0% 259/75%/0% 09/1009/0% 5%/90%/5% 2596/759/0% 0%/09/100% 0%/100%/0%  2024 Season Gross Rent $2,260 $2,410 $2,424 $2,430 $2,500 $2,515 $2,560 $2,600 $2,615 $2,630 $2,840  Lease Term Sandy/Clay Loams/DGs  Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Gonzales to Soledad Salinas to Chualar Chualar to Gonzales  2023-2025 2022-2025 2024-2027 2022-2025 2023-2026 2021-2024 2023-2026 2023-2026 2021-2025 2023-2026 2021-2024  10 11  Appraisal Report- - Chunn Ranch LLC  Page 35  Packet Pg. 107    The above table provides an overall range of $2,260t to $2,840 per acre. Within this range, Leases 2t to10 provide the greatest comparability to the subject property and indicate a range of $2,410 to! $2,630 per acre. Inc consideration fort the soils and water improvements, a rent at the mid-to-upper end of this range would be expected, and a gross rent of $2,600 per acre is concluded as the market rent oft the Chunn  Ranch. Expenses  Property taxes represent the primary expense item int this valuation. As noted previously, the property is subject to a Farmland Security Zone contract. The property taxes under an FSZ contract are accounted for by adding direct property taxes as a line item and adding 65% of the property tax rate to the  capitalization rate. Capitalization Rate  Ine estimating an appropriate capitalization rate, consideration is given to the sales included in the sales  comparison approach. The market datai is summarized as follows:  Summary ofF Farmland Copitalization Rotes Sale number Ranchr name Saledate Location Usablef farma acres Farmland allocation Expenditures after sale Adjusted farmland allocation Farmland allocation pera acre Gross incomep pera acre Property taxe estimate upons sale Neti incomep pera acre Capitalization rate  Wing 305.7 $0 $60,500 $2,465 $465 $2,000 3.3%  Wimer 133.6 $0 $61,700 $2,600 $475 $2,125 3.4%  Harney 146.0 $0 $64,700 $2,485 $490 $1,995 3.1%  Vosti Nielson 95.4 187.5 $0 $223.350 $66,000 $67,200 $2,500 $750 $1,750 2.7%  Herold Hunter 538.0 82.8 $0 $320.000 $67,800 $90,900 $2,500 $3,600 $505 $715 $1,995 $2,885 2.9% 3.2%  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,605,000 $36,500,000 $7,520,000  Chualar CynR Rd Highway101 SpenceRd  River Rd OldStageRd Altas Street Hunter Lanel  $2,600 $250 $2,350 3.5%  The above table provides a range of 2.7% to 3.5%. Sale 4 at 2.7% provides the lowest indication and is near the subject property; however, this ranch has al long-term potential fori industrial development and arate above 2.7% applies to the subject property. The remaining sales provide a range of 2.9% to 3.5%. While rates have been trending upwards in recent years, it is estimated that demand would be strong for the subject property duet toi its soils, location, and water quality. Arate towardi thel lower end of this range  is appropriate, and a rate of 3.0% is applied. Hence,  Appraisal Report- - Chunn Ranch LLC  Page 36  Packet Pg. 108    Usableacres Gross rent per usablea acre Gross annual rent Less: Direct property taxes Net annual incomel before %5 basedt taxes Capitalizationrate Add: FSZa adjusted taxr rate Weighted capitalizationrate Capitalized value Rounded to Value per usable acre FAIRI MARKET VALUE CONCLUSION Valuei indicated fromt thes sales comparisonapproach Valuei indicated fromt thei income approach  181.2 $2,600 $471,120 $7,329 $463,791  3.00% 0.74%  1.14% x 65.0% =  3.74% $12,390,251 $12,390,000 $68,400  $12,956,000 $12,390,000  The two approaches to value provide the above indications from which a rounded value near the mid- point is concluded as the fair market value of the Chunn Ranch before the take. Hence,  Fair market value ofthep property before the take Fair value value per acre (rounded)  $12,685,000 $70,000  Appraisal Report - Chunn Ranch LLC  Page. 37  Packet Pg. 109    FAIRI MARKET VALUE OF THE PART TAKEN  As per the legal descriptions oft the proposed takes, which are included in the addendum, the parts taken  are depicted as follows:  Property Boundary Proposed SSE( (Apprax) Proposed TCE( (Approx)  GoogleEarth  The SSE is a permanent easement that runs immediately adjacent to an existing SSE near the west property boundary. The easement varies in width from about 4.7t to 12.8+ feet and, according to the The TCE is a temporary easement that will encumber a portion of the property for a six month period, commencing November 1, 2024 and continuing through April 30, 2025. According to the legal description included in the addendum, the TCE encumbers at total of 1.58t acres. However, this includes lands within the proposed SSE. Omitting the land within the proposed SSE, the net area encumbered by the TCE is  legal description included in the addendum, encumbers 5,969t square feet.  approximately 1.44t acres.  The proposed easements are: summarized as follows:  Appraisal Report = Chunn Ranch LLC  Page 38  Packet Pg. 110    Take Summary Description Sanitary Sewer Easement (SSE) Temporary Contruction Easement (TCE) Less:Acres within the proposed SSE Total TCE area outsidei the proposed SSE SANITARY SEWER EASEMENT  Square Feet 5,969  Acres 1.58 0.14 1.44  Thet fair market value oft the property before thet take was concluded at $70,000 per acre. Thei fair market value of the SSE would be less than the fee simple value because the fee owner retains use of the easement area for internal roads and farming. Because the SSE is situated along the west side of the property and near a bank between the upper and lower benches of the Salinas Valley, the effect of the easement, as it is unlikely that this area would be anything else than ai farm road or bank. The effect on thet fee value would be less than 50% and the value of the SSE is concluded at 35% of thet fee value.  Therefore, the value of the part taken is calculated as follows:  SSEI land area (square feet) Fee simplel land valuep per acre beforet thet take % of fee: simpley value Fair market valuer per acre oft thep partt taken Fair market value oft the part taken TEMPORARY CONSTRUCTION EASEMENT FAIRI MARKET VALUE OFT THE PARTTAKEN Fair market value oft the part taken  5,969  $70,000 35.0%  $24,500 $3,357  The value of the TCE is considered later as it is only ai temporarytaking. Thei fair market value of the part taken is concluded as follows:  $3,357  FAIR MARKET VALUE OF THE REMAINDER AS PART OF1 THE WHOLE  Thei fair market value oft the remainder: as part of the whole ist thef fair market value oft the property before  thet take less the fair market value of the part taken, which is calculated: as follows:  Appraisal Report- - Chunn Ranch LLC  Page 39  Packet Pg. 111    Fair market value of thep property beforet thet take Fair market value ot the parttaken Fair market value of the remainder as part oft the whole  $12,685,000 $3,357 $12,681,643  FAIR MARKET VALUE OF1 THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS  There are no damages associated with thei take as the remaining acreage would retain a value of $70,000 per acre. Therefore, the fair market value of the remainder before considering special benefits is  concluded asi follows:  Fair market value of the remainder as part of the whole  $12,681,643 $0 $12,681,643  Damages  Fair market value oft the remainder after the take before considering special benefits  FAIR MARKET VALUE OF THE REMAINDER CONSIDERING SPECIAL BENEFITS  The project does not provide special benefits. Therefore, thet fair market value of the remainderafterthe  take and after considering special benefits is as follows:  Fair market value oft the remainder after thet take before considering special benefits Fair market value oft the remainder after the take after considering special benefits  $12,681,643 S0 $12,581,643  Special benefits  FAIR MARKET VALUE OF THE TEMPORARY CONSTRUCTION EASEMENT  The proposed TCE encumbers approximately: 1.58t acres ofthe: subject property, excluding thel land areas within the proposed SSES. The easement would encumber the property for 6 months, commencing The value of the TCE is predicated on an appropriate land rent for the TCE for its duration. The market rent of the subject property was previously estimated at $2,600 per acre. Hence, the value of the TCEi is  November 1, 2024 and continuing through April 30, 2025.  concluded: as follows:  Appraisal Report- Chunn Ranch LLC  Page 40  Packet Pg. 112    TCEI land area (acres), excluding thel land area within the cwistingsanitarysewer: easement  1.44 $2,600 $3,752 6 $1,876  Gross annual rent per acre Annual renti for thel TCE Estimated duration oft thel TCE (months) Fair market value of the' TCE  Additionally, the property owner will have to install farm roads along the TCES to continue farming the remainder of the property during the construction period. Iti is assumed that these farm roads will be 12 feet wide, running adjacent to the TCES. Based upon these assumptions, the temporary farm roads will Thel land area within the TCEs and this adjoining farm road will likely be compacted from the construction and/or road use and will likely require a period oft time to restore those lands to a farming use. These lands could also provide limited utility to the property owner for the remainder of the 2025 season depending on crop planting schedules. To account for this restoration period and potential interruption of crop planting schedules, an additional 6 months is applied to these lands to provide sufficient time to  take in approximately 0.86t acres.  rip, till and prepare the soils foraf farming use.  Compacted land areas TCEland: area (acres) Additional land area adjacent tot the TCE Total compacted land areas Gross annual rent per acre Annual renti for the compacted land areas Estimated duration to restore compacted areas toi farming use (months) Additional value for TCE-related compacted lands Thus, thet total compensation for the TCE is as follows:  1.44 0.86 2.30 $2,600 $5,978 $2,989  Fairr market value oft theT TCE Total compensation  $1,876 $2,989 $4,865  Additional TCE value for TCE-related compacted lands  Appraisal Report - Chunn Ranch LLC  Page 41  Packet Pg. 113    COMPENSATION SUMMARY  Fair market value oft thep partt taken as partoft thewhole  $3,357  Damages & special benefits Damages Less:Special benefits Subtotal Value oft thel TCE Total value oft the take  $0 $0  $0 $4.865 $8,222  Appraisal Report- - Chunn Ranch LLC  Page 42  Packet Pg. 114    CERTIFICATION  Icertify that, to the best of my knowledge and belief:  The: statements of fact contained in this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject oft this report, and no lappraised the Chunn Ranch several times over the past few years and most recently in 2023. I also appraised the proposed TCE for the City of Gonzales in 2023 and 2024. However, other that these prior appraisal services, Ihave performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Çode of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As oft the date oft this report, John W. Piini, MAI has completed the continuing education program  opinions and conclusions.  personal interest with respect to the parties involved.  immediately preceding acceptance oft this assignment.  involved with this assignment. predetermined results.  subsequent event directly related tot the intended use of this appraisal.  Appraisal Institute. certification.  byi its duly authorized representatives. for Designated memkers oft the Appraisal Institute.  aa  bh John W. Piini, MAI  Certified General Real Estate Appraiser State of California, BREA Number AG005214 Appraisal Report - Chunn Ranch LLC  Page 43  Packet Pg. 115    CERTIFIÇATION  Icertify that, to the best of my knowledge and belief:  The statements of fact contained in this report aret true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject of this report, and no lappraised the proposed TCE for the City of Gonzales in 2023 and 2024 but have performed no other service, as an appraiser or in any other capacity, regarding the property that is the subject oft this report withini thet three-year period immediately preceding acceptance of this assignment. Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional, Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As oft the date ofthis report, Greg Piini, MAI has completed the continuing education program for  opinions and conclusions.  personal interest with respect to the parties involved.  involved withi this assignment. predetermined results.  subsequent event directly related to thei intended use ofi this appraisal.  Appraisal Institute. certification.  by its duly authorized representatives. Designatedmembers: oft the Appraisal Institute.  A - Greg/Pini,MAI  Certified General Real Estate. Appraiser State of California, BREA Number AG044270  Appraisal Report - Chunn Ranch LLC  Page 44  Packet Pg. 116    LIMITING CONDITIONS  Assumptions and Limitations of Appraisal  This appraisali is for no purpose othert than property valuation, andi the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations tot the accuracy oft thei information and analyses contained int this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read  this entire section to understand these limitations.  Appraisal is not al Legal Opinion discussed in the report.  No opinion is intended to be expressed for legal matters or that would require specialized investigation or! knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed tol be marketable andi free and cleard of all liens and encumbrances, easements, andi restrictions except thoses specifically discussedi int the report. The property isa appraised assuming it to be under responsible ownership and competent management and available Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for Itisa assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation. Any significant question should be addressed to local zoning or land use officials and/or an attorney. Iti is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and  fori its highest and best use.  this appraisal.  regulations affecting the subject property.  Appraisal Report - Chunn Ranch LLC  Page 45  Packet Pg. 117    Testimony or attendance in court or at any other hearing is not required by reason of rendering this  appraisal unless a signed contract has been executed prior to the date oft this report.  Appraisal is not a Survey  No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment ofr real propervylmprovements is assumed to exist. Iti is assumed that the utilization of the land and improvements is within the boundaries of the property lines oft the property described and that there is no encroachment or trespass unless noted int the report. All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions oft the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for No opinion is expressed. as tot the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry fort the exploration or removal of such materials except as is expressly stated.  encroachments, or other survey matters.  Limited Data  matters int this report should be considered preliminary in nature.  other components  any such condition ori fora any expertise or engineering to discover them.  Appraisal Report - Chunn Ranch LLC  Page 46  Packet Pg. 118    No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted ini the report. Itis further assumed that the lot does not contain any type of dump site andi thatt there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise notedi int ther report. Ifany problems oft this nature are known tot the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. Ifiti is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested partyi is concerned about the existence, conditionora adequacy yofany particular item, we would  additional cost willl be necessary to estimate the effects ofsuch.  strongly suggest that a construction expert be hired for a detailed investigation.  Appraisal Report Limitations  Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property ort ther real estate market. While noi factors we believe to be significant but unknown toi the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions oft the property, the inherent limitations of relying upon information Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue  provided by others, etc.  additional data gathering for al higher level of certainty.  Appraisal Report - Chunn Ranch LLC  Page 47  Packet Pg. 119    Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendationtoa act. Any actions taken byy you, the client, ora any others should be based on your own judgment, and the decision process should consider many factors other thanj just Appraisal reports made for lenders are technical documents specifically made to lender requirements. Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of Neither all nor any part of the contents oft this report, especially: any conclusions ast to value or the identity oft the appraiser or the firm to which appraiseri is connected, shall be disseminated to the publici for public communication purposes through advertising media, public relations media, news media, sales media or any other public means ofc communication, without the priorwritten consent and approval of the author. The estimated market value, whichi is defined ini the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants oft the properties in the vicinity of the property  the value estimate and information given in this report.  thei information contained int these reports.  economically int the marketplace as oft the date ofv value.  appraised.  Acceptance of Appraisal Report authorized representatives.  The use oft this report is subject tot ther requirements oft the Appraisal Institute relating to review byi its duly This appraisal is an estimate of value based on an analysis ofi information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect ori incomplete information. Ifnewir information of significance comes to light, orit ifany conditions become apparent not previously knowni to the appraiser(s) which would affect the value of the property, the value giveni int this report is subject to change without notice and a re-appraisal at additional cost will Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received byt the appraisers(s).  be necessary.  Appraisal Report - Chunn Ranch LLC  Page 48  Packet Pg. 120    ADDENDUM  Packet Pg. 121    Grant Deed of APN 223-011-032  Easement #1 - Sanitary Sewer Easement Area Chunn Ranch LLC to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 4C oft the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being ap portion of the land described in the deed recorded. January 9, 1995 in Reel 3189 at Page 1129, Official Records ofs said County, being more particularly described as follows: As strip of land lying easterly of, adjacent to and contiguous with an existing 15 foot wide sewer easement as described int the deed recorded in Reel 321 at Page 21, Official Records of said County,  described as follows:  COMMENCING at an angle point in the northeasterly line ofs said land described in Reel 3189 at Page 1129; thence along the northeasterly line ofs said land, North 53" 34': 26" East, 11.34 feet to the POINT  OF BEGINNING; thence continuing along said northeasterly line  1) North 53°3 34' 26" East, 4.66f feet; thence departing said northeasterly line  2) South 11°37'. 55" West, 856.13 feet; thence  3) South 69° 40'3 37" West, 12.791 feet to a point on the easterly line ofs said existing sewer  easement described in said deed; thence along said easterly line 4) North 12° 08' 50" East, 859.461 feet to the POINT OF BEGINNING.  Containing an area of 5,969 square feet, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S. 5321 Dated: July31,2024  Packet Pg. 122    3  Packet Pg. 123    Grant Deed of APN 223-011-032  Easement #2-7 Temporary Construction Easement Area  Chunn Ranch LLC to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 4C of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being aj portion of the land described in the deed recorded. January 9, 1995 in Reel 3189 at Page 1129, Official Records ofsaid County, being more particularly described as follows:  BEGINNING at the most northerly corner ofs said land described in Reel 3189 at Page 1129; thence along 1) South 40° 24' 14" East, 18.86 feet; thence departing said northeasterly line crossing said land  the northeasterly line of said land  2) South 53° 33'2 28" West, 241.39: feet; thence 3) South! 53°32'26" West, 1000.07 feet;thence 4) South 53° 50'4 42" West, 990.42 feet; thence 5) South 11°3 37'5 55" West, 863.191 feet; thence 6) South 69° 40'3 37" West, 42.521 feet; thence 7) North 12° 08'5 50" East, 876.48 feet; thence  8) North 53° 34'2 26" East, 2256.281 feet to the POINT OF BEGINNING.  Containing an area of 1.58 acres, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S. 5321 Dated: July31,2024  Packet Pg. 124    O -  2  NS)  Packet Pg. 125    PIINI REALTY  QUALIFICATIONS OF THE APPRAISER  John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of  Monterey, San Benito, Santa Cruz and Santa Clara Counties.  Academic Background Formal Education Appraisal Education  University of California, Los Angeles, BA degree-1974  Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements. Since 1983, John Pini has completed a number of appraisal courses and seminars and is current  with Appraisal Institute's continuing education requirement.  Professional Experience 1975-1983 1983-2008 2008- present  Associate appraiser with. Joel Piini, MAI  Part owner of Piini Realty, at family owned and operated real estate firm involved in appraising, brokerage, development and management. Upon the retirement of Jim Piini, John Piini became the sole owner of Piini Realty, which is a full service real estate firm providing appraisal, brokerage and property management services. In 2008, John Piini obtained his California Brokers license and his real estate activity focuses primarily on appraising and marketing agricultural properties.  Appraisal Assignments financial lending.  The majority of assignments pertain to the valuation of agricultural and acreage properties fora variety of purposes including estate planning, conservation easements, trust management and  Valuations of commercial, industrial special-use, residential and  development properties are also performed.  Professional affiliation and memberships  MAI-N Member of the Appraisal Institute - Certification Number 6708 California Certified General Real Estate Appraiser - OREA # AG005214 California Licensed Real Estatel Broker - DRE # 00542238 Monterey County Board of Realtors  263 Lincoln Ave., Salinas, CA93901 I TEL 831-422-5327 I FAX 831-422-8280 1 PiniRealty.com  Packet Pg. 126    QUALIFICATONS OF THE APPRAISER  Greg Piini, MAI has been engaged in the real estate business since 2000. Over this period of time, Greg  has focused on both real estate appraisal and property management.  Academic Background Formal Education  Hillsdale College, Hillsdale, Michigan. Bachelor of Arts in Finance, 2000  Appraisal Education  Appraisal Institute - 2001 through current. Beginning in 2001, Greg began taking appraisal classes with the Appraisal Institute and has continued taking classes and seminars over the years. Greg is current with the continuing education requirements of the BREA and the  Appraisal Institute. Professional Experience Piini Realty,Inc. 2000-2019  During the first nine years, Greg worked as an associate appraiser with John W. Piini, MAI. In 2009, Greg obtained his Certified General Real Estate Appraisal License, and in 2016, he completed the requirements to obtain the MAI designation oft the Appraisal Institute. In 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage,  2019-Current  development and management.  Appraisal Assignments  The majority of appraisal assignments involve acreage, agricultural, commercial and industrial properties locatedi in Monterey, Santa Cruz, San Benito and Santa Clara Counties. The appraisals are prepared for a variety of clients that range from attorneys, land trusts, government agencies, and property owners for a variety of purposes that include estate planning, conservation easements, trust management, andi financial lending.  Professional affiliation and memberships Appraisal Institute  California Certified General Real Estate Appraiser-E BREA # AG044270 California Licensed Real Estate Salesperson - BRE# #( 01294279  Monterey County Board of Realtors  Packet Pg. 127    JJ&H VIOLINI CO.  Grant ofl Easement - Sanitary Sewer Easement Grant ofTemporary Easement Appraisal Report - Violini Property  Packet Pg. 128    Recording requested by: CITY OF GONZALES 1471 Fourth Street Gonzales, CA 93926 And when recorded mail copy to: CITY OF GONZALES Public Works Department POI Box 647 Gonzales, CA 93926 Nol Recording fee - Government Code $ 27383  Space above this line for Recorder's use  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by J.J. & H. Violini Co., a California General Partnership, Bryan L. Violini,  and Kirk J. Violini, ("Grantor"), for the benefit of the City of Gonzales, an incorporated City  ("Grantee"), with reference to the following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as APNNo. 223-011- B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement. Purpose")aportion ofthel Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the  036(the "Property"), in the County ofMonterey, State ofCaliforia.  site plan attached hereto as Exhibit B.  NOW,THEREFORE, in consideration ofthe: foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee aj permanent non-exclusive easement  tot thel Easement Area for the Easement Purpose; and for the further purpose ofingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with ai right ofway upon, over, under, through and across the Property to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill or other structures over the hereinafter described Easement  Area.  Packet Pg. 129    2. 2024. 3.  Compensation. Grantor acknowledges receipt of compensation from Grantee for  the Easement in accordance with the value ofthej property per the Appraisal Report dated May 31,  Maintenance. Grantor hereby grants to Grantee a perpetual non-exclusive  easement for maintenance and repair purposes over the Easement Area and such portions of the Property as are: reasonably necessary for suchi maintenance and repair. Grantee shall bei responsible  for all costs associated with the Grantee's use of thel Easement.  4. No Gift or Dedication. Nothing contained in this Easement Agreement shall be deemed to be a gift or dedication of any portion oft the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted ini this Easement Agreement shall be strictly limited to and for the purposes herein expressed with respect to private property solely for the benefit of the parties and their respective  tenants, invitees and licensees.  5.  Mortgagee Protection. No breach or violation of this Easement Agreement or of  the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing a loan made in good faith and for value with respect to any portion of the Property, but all of the provisions of this Easement Agreement shall be binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to thel Property or any portion thereof, by foreclosure, trustee's sale, deed  in lieu ofi foreclosure, or otherwise.  6. 7.  Notice of Material Issue. Grantor shall promptly notify Grantee in writing of any Governing Law. This Easement Agreement shall be governed by and construed 8. Successors and Assigns: Covenants Running with the Land. This Easement Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. of the 9. Severability. If any provision ofthis Easement Agreement is prohibited or held to be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability oft the other provisions shall not be affected ori impaired thereby and (b) thej parties hereto shall endeavor in good faith negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or unenforceable  material issue or fact that may affect the Easement. in accordance with the laws ofthe State of California.  California Civil Code.  provisions.  10. Remedies. In the event of any breach or threatened breach of any provision oft this Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to enjoin suchl breach or threatened breach and toi recover damages for any suchl breach. Thei remedies  2  Packet Pg. 130    permitted or available pursuant to thej provisions oft this Easement. Agreement shall be cumulative  and in addition to any rights or remedies available at law or in equity.  11. Indemnification.  (a) Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities,judgments: and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising from the willful ori negligent acts or omissions ofa Grantor Party. affiliates, contractors, employees and agents (collectively, "Grantee Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly ori indirectly from or related to Grantor's exercise ofany rights retained by Grantor under this Easement Agreement or arising from the willful or negligent acts or omissions of a Grantor Party, provided that Grantor shall not be required to indemnity or hold Granteel harmless from and against anyl loss, claim, demand, costs, expense, lien, fine, penalty, liability, judgment or damages arising from the willful or negligent acts or omissions ofa Grantee  (b) Grantor shall indemnify, defend and hold Grantee, and its officers,  Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each ofwhich shall be deemed an original, but all ofwhich when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart: identical thereto except having additional signature pages  executed by other parties to this Easement Agreement attached thereto.  13. Cost of Enforcement. Ifany legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofi its costs of suit,  including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 131    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantor: Brian L. Violini and. J.J.&1 H. Violini  Co., a California General Partnership  By:  Name: Kori B. Violini  Title:  Executor of the Estate of] Brian L. Violini, Deceased, J.J. & H. Violini Co.  Partner  An notary public or other officer completing this certificate verifies only thei identity oft thei individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On  ) SS.  2024 before me,  Notary Public,  personally appeared  who proved to me on the basis of  satisfactory evidence tol be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity  upon behalf ofwhich the person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws of the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 132    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantor: KirkJ J. Violini  By:  Name: Liza Horvath  Title:  Executor oft the Estate of Kirk. J. Violini,  Deceased.  An notary public or other officer completing this certificate verifies only thei identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.  STATE OF CALIFORNIA COUNTY OF On_ personally appeared  SS.  2024 before me,  Notary, Public,  who proved to me on the basis of  satisfactory evidence tol be thej person(s) whose name(s)i is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity  upon behalfofwhichi thej person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws of the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 133    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: City of Gonzales  By:  Name: Carmen Gil Title:  City Manager  An notary public or other officer completing this certificate verifies only the identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On personally appeared  SS.  2024 before me,  Notary Public,  who proved to me on the basis of satisfactory evidence  tob bet the person(s) whose name(s) is/are subscribed toi the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s), on the instrument the person(s), or the entity upon behalf of which the  person(s) acted, executed the instrument. that the foregoing paragraph ist true and correct.  Icertify under PENALTY OF PERJURY under thel laws oft the State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 134    EXHIBIT A  Legal Description of the Easement Area  A-1  Packet Pg. 135    Grant Deed of Easement #1 - Sanitary Sewer Easement APN 223-011-036 Violini to City of Gonzales LEGAL DESCRIPTION  Situate within Tracts 3A, 3B and 4C of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft the land described ini the deed recorded December 30, 1986 in Reel 2043 at Page 1082, Official Records of said County, being more  particularly described as follows:  BEGINNING at the most northerly corner of said land described in Reel 2043 at Page 1082;thence  along the northeasterly line of said land  1) South 38° 07' 31" East, 4.70 feet; thence departing said northeasterly line and crossing said land  2) South 53°37': 15" West, 551.25 feet; thence land; thence alongs said northwesterly line  3) South 54°: 17'2 21" West, 340.06 feet more or less to a point on the northwesterly line ofs said  4) North 53°3 34'25" East, 891.15 feet toi the POINT OF BEGINNING.  Containing an area of 3,189 square feet, more or less. This legal description was prepared by: dgaps Lynn A. Kovach P.L.S.5321 Dated: December17,2021  NOVAL LAND A. B  OF CAL  A-2  Packet Pg. 136    EXHIBIT. B Site Plan of Easement Area  B-1  Packet Pg. 137    2-8  ) 6  301 apim .00'09 MONI  LZ-80-1Z quawespa SS apim 00'9L bunsixg  00 9  Packet Pg. 138    GRANT OF TEMPORARY EASEMENT  THIS GRANT OF TEMPORARY EASEMENT (this "Temporary  Easement") is made as of  2024, by J.J. &F H. Violini Co., a California General  Partnership, Bryan L. Violini, and Kirk. J. Violini, ("Grantor"), for the benefit ofthe City of Gonzales, an incorporated City ("Grantee-"), with reference to the following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as. APNNo. 223- B. Grantee has requested a temporary easement to perform the activity, more particularly described in Exhibit A (the Improvements"), attached hereto and incorporated particularly described on Exhibit B attached hereto (the Temporary Easement Area"), and NOW, THEREFORE, in consideration of the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency Temporary Easement Area fort the mprovements; and fori the: further purposeofingress, egress and passage across with all thei necessarymaterials, tools, supplies, and other equipment related to the Improvements, together with a right of way upon, over, under, through and across the 2. Term. The term of this Temporary Easement shall commençe when performance of the Improvements begins, no earlier than November 1. 2024, and shall automatically terminate upon completion of the Improvements or no later than May 1, 2025. Grantee shall provide Grantor at least twenty-four (24) hours' notice prior toj performance of any Improvements. Grantor shall grant no rights inconsistent with the reasonable exercise by performance of the Improvements, except for those cost or expenses resulting from the negligence orwillful misconduct ofthe Grantor. Seel Exhibit A forothere exceptions, ifany. Temporary Easement in accordance with the Appraisal Report, updated October 4, 2024. Value of the Temporary Easement was predicated on an appropriate land rent for the Temporary Easement area and duration. Total compensation for the Temporary Easement is $2,634.00, two thousand, six-hundred and thirty-four dollars and zero cents. performance of the improvements, and to the extent reasonably feasible, the Grantee shall  011-036, ini the County ofl Monterey, State of California.  herein by reference. C.  Grantee has requested temporary access to a portion of the Property more  depicted on the site plan attached hereto as ExhibitC.  ofwhich are hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a temporary easement to the  Property to access the' Temporary Easement Area (the Easement").  Grantee ofits rights under this Temporary Easement.  3. 4.  Cost. TheGrantee: shallberesponsible forall costs and expenses associated with Compensation. The Grantee shall compensate the Grantor for the use of the  5.  Performance of the Improvements. Time is ofthe essence with respect to the  diligently pursue completion ofthe Improvements.  6.  Safety. Grantee shall erect and maintain on the Property, as necessary,  reasonable safeguards for safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and  notifying owners and users of adjacent sites and utilities.  Packet Pg. 139    7.  Revocable Licenses and Termination. This Temporary Easement shall be  revocable by the Grantor only if the Grantee fails to comply with any provision herein. Revocation may not occur until Grantor has provided the Grantee with written notice of the alleged breach and atl least ten (10) days to cure. During said 10-day period to cure, the Parties shall meet and conferi regarding the alleged breach and potential cure. Notice to the Grantee of any alleged breach shall be sent to Patrick Dobbins. Public Works Director, 147 4th Street, Gonzales, CA. If Grantor terminates this Temporary Easement at any time after performance ofthel Improvements has commenced, but prior to the completion of such Improvements, orif Grantor otherwise prohibits or impedes Grantee right to enter the Property hereunder, the Grantee shall not be liable for any actions, claims, suits, penalties, obligations, liabilities, or damages to the Property, environmental claims or injuries toj persons, which may be caused by Grantee's performance of the Improvements pursuant to this Temporary Easement or arising out of or in connection with performance of the Improvements, whether such activities or performance thereofis by Grantee or anyone directly ori indirectly employed or under contract with Grantee, and whether such damage or claim shall accrue or be discovered before or after Granteeshall, atitsown costa and cwpanseresorethePoperyloasuhstamtaly similard condition in which it was prior to Grantee's performance ofthe Improvements. Int the event that Grantor terminates this' Temporary Easement for anyreason otherthan: ac Grantee default and at any time after performance of the Improvements has commenced, but prior to the completion ofsuch Improvements, the Granteeshall Inotbeobligated torestorethe Property as described herein. no termination of this Temporary Easement shall release the parties from any liability or obligation hereunder resulting from any acts. omissions or events happening prior to the 10. Counterparts. This Temporary Easement may be executed in one or more counterparts, each ofwhich shall bedeemed and original but allofwhichi togethershall constitute INV WITNESS WHEREOF, the Partiesl hereto have executed this Temporary Easement on  the termination oft this Temporary Easement.  8.  Restoration of the Property. As part of the Improvements to the Property,  9.  Continuing Liability. Exceptasotherwise: seti forthinthisTemporary, Easement,  termination oft this Temporary Easement and restoration oft the Property.  one and the sameinstrument. the date first written above. CITY OF GONZALES Carmen Gill, City Manager  OWNER By: Co. Partner OWNER By:  By:  Kori B. Violini, Executor oft the Estate of Brian L. Violini, Deceased,J.J. & H. Violini  Liza Horvath, Executor of the Estate of Kirk  J.Violini, Deceased.  Packet Pg. 140    EXHIBIT. A Description of Work  The scope of work is as follows:  Installation, testing and commissioning ofr new 12-inch/24-inch PVC below grade gravity sewer pipelines, manholes, and appurtenances to support the City's upcoming  Industrial Wastewater Treatment. Program.  Not included: 1.  Not Applicable  A-1  Packet Pg. 141    EXHIBITB  Legal Description of thel Easement Area  B-1  Packet Pg. 142    Grant Deed of APN 223-011-036 Violini to City of Gonzales LEGAL DESCRIPTION  Easement #2- Temporary Construction Easement Area  Situate within Tracts 3A, 3B and 4C of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded December 30, 1986 in Reel 2043 at Page 1082, Official Records of said County,  being more particularly described as follows:  BEGINNING at the most northerly corner of said land described in Reel 2043 at Page 1082; 1) South 38° 07' 31"E East, 15.98 feet; thence departing said northeasterly line crossing  thence along the northeasterly line of said land  said land  2) South 53°56/22West, 764.50 feet; thence 3) South 53° 54'57"West, 999.92 feet; thence land; thence along said westerly line  4) South 53° 33'28"West, 745.98 feet more or less to a point on the westerly line of said 5) North 40° 24' 11"West, 5.33 feet more or less to the most westerly corner of said land;  thence along the northwesterly line of said land  6) North 53° 34' 25" East, 2510.26 feet to the POINT OF BEGINNING.  Containing an area of 0.5 acre, more or less. This legal description was prepared by: dgaps Lynn A. Kovach P.L.S. 5321 Dated: April 19, 2023  CNALLAD L 33  * OF CALY IFO  B-2  Packet Pg. 143    EXHIBITC Site Plan of Easement Area  C-1  Packet Pg. 144    2-0  6  301 epim ,00'09 MONI  1Z-80-12E quawaspa SS apim .00'9L bupsixa  G 6  Packet Pg. 145    APPRAISAL OF:  CITYOFG GONZALES/VIOLINI RANCH PARTIALTAKE-G GONZALES RIVER ROAD GONZALES, MONTEREY COUNTY APN223-011-036  REQUESTED By:  Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  APPRAISALASOF:  May 8, 2024  APPRAISED By:  John' W. Piini, MAI Greg Piini, MAI 263 Lincoln Avenue Salinas, CA 93901  Packet Pg. 146    a PIINI REALTY  October 14, 2024 Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CAS 93926  Re: Appraisal Report-J.J.& H. Violini Co.'s Violini Ranch Gonzales, Monterey County, California  Dear Mr. Dobbins:  Upon your authorization, we conducted thei investigations and analyses necessary' to form an opinion as to the fair market value of one permanent Sanitary Sewer Easement (SSE) and one Temporary Construction Easement (TCE) on a portion ofthe Violini Ranch, locatedi tot the west of Gonzales, Monterey County, California. The Violini Ranchi is owned by J.J.8 & H. Violini Company andi is identified as Assessor's These easements are being purchased by the City of Gonzales for an agricultural-industral wastewater conveyance pipeline that is part of Gonzales' Industrial Wastewater Recycling Facility (IWRF)p project. The SSE runs along a portion of the northwest boundary, varying in width from 0 to 4.7t feet and encumbering approximately 3,189t square feet. The TCE is a temporary easement that also runs along the northwest boundary, varying in width from 5.331 to 15.981 feet and encumbering approximately 0.44t acres, excluding the lands within the SSE. The TCE encumbers the land for a period of six months, To farm the property outside the TCE, a newi farm road willl be necessary along the south: side of the TCE during the sixr month construction period. Afterward, the land area within the TCE and this farm road will bet too compacted to bet farmed. To restore this landt to at farming use, additional time will be required to rip, till and prepare these soils. An additional: six months are added to the TCE and the land adjacent to Based on the inspection oft the property andi thei investigations and analyses undertaken, we havei formed the opinion that as of May 8, 2024, and subject tot the assumptions and limiting conditions set forthi int this  Parcel Number (APN) 223-011-036. The ranch has ag gross area of 156.03t acres.  commencing on November1,: 2024.  the TCE1 to account for this loss.  report, the value conclusions are as follows:  263 Lincoln Ave., Salinas, CA 93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 147    Mr. Patrick Dobbins  October. 14, 2024  Re: Appraisal Report -J.J.&1 H. Violini Company  Page ii  Fairr market value of thep parttaken as parto of thev whole  $2,581  Damages & special benefits Damages Less: Special benefits Subtotal  $0 $0  $0 $2.634 $5,215  Value of the TCE, including compensation for the compacted lands  Totaly value oft the take  The appraisal report that follows consists of 46 pages and sets forthi thei identification of the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the value conclusions.  Respertiulysubmite., EA  Piini, MAI  Certified General Real Estate Appraiser State of California, BREAI No. AG005214  Generall Real Estate Appraiser State of California, BREA No. AG044270  A4  Packet Pg. 148    TABLE OF CONTENTS  Tronsmittalletter. Table of Contents. Introduction.. Identification Extraordinary Assumption. Purpose of the Appraisal. Title. Property History Property Rights Appraised. Client of the Appraisal. Intended Users. Intended Use of the Appraisal.. Effective Date of the Appraisal. Date of Report. Report Format Exposure Time. Land Acreage Definitions. Scope of Work. Regional Description. Regional Map. Location Map. Monterey County.. Gonzales. Property Description. Aerial Photograph.. Assessor's Parcel Map. Subject Photograph. Location  ili  10 10 10 11 14 15 15 15 16 16 Page ili  Appraisal Report -J.J.& H. Violini Company  Packet Pg. 149    Land Area. Access. Irrigation Water. Building Improvements Hazards. Assessed Valuation & Taxes Property Rights. Land Use Policies Highest & Best Use. Valuation Comments.  16 16 17 17 17 17 18 18 19 19 20 36 37 38 38 38 40 41 43  Fair Market Value of the property before the take.. Fair Market Value oft the Part Taken.. Fair Market Value oft the Remainder as Part oft the Whole. Fair Market Value of the Remainder Before Considering Special Benefits. Fair Market Value of the Remainder Considering. Special Benefits.. Fair Market Value of the Temporary Construction Easement.  Compensation: Summary. Certifications. Limiting Conditions Addendum  Legal Description and Maps of the Permanent and Temporary Easements  Qualificatons of the Appraisers  Appraisal Report -J.J.& H. Violini Company  Page iv  Packet Pg. 150    INTRODUCTION  IDENTIFICATION  This appraisal involves a partial-take valuation of an agricultural farm property referred to as the Violini Ranch. The Violini Ranch is owned by. J.J.8 & H. Violini Company and is located to the west of Gonzales, Monterey County, California. The entire ranch is 156.03t acres and is identified as Monterey County The partial-take consists of one Sanitary Sewer Easement (SSE) that encumbers approximately 3,189t square feet, and one Temporary Construction Easement (TCE) that encumbers proamately0Aacres, excluding the land within the SSE, for a period of six months, commencing November 1, 2024 and continuing through April 30, 2025. The publicagency! involvedi ini this taking is the City of Gonzales as part ofa project referred to as the Gonzales Industrial Wastewater Recycling Facility (IWRF) project.  Assessor Parcel Number (APN): 223-011-036.  EXTRAORDINARY, ASSUMPTION Irrigation Improvements  Irrigation water for the Violini Ranch is provided from underground groundwaterv wells and underground irrigation pipelines. This appraisal is predicated upon the extraordinary assumption that the proposed easements and/or the proposed construction project do not disturb any oft the irrigation system and if the construction oft the proposed conveyance line affects any oftheirigationsystem, the construction project would repair and replace the affected irrigation improvements. as a cost-to-cure item.  Depth of Proposed Conveyance. Line  This appraisal is predicated on the extraordinary assumption that the proposed conveyance line willl be at ac depth that is sufficient to allow continued deep tiling/ripping of the soil above, and that its location  and/or depth will noti interfere with thei farming operation on the Violini Ranch.  Environmental Hazards  An environmental assessment report was not provided and we are not qualified to make such a report and/or environmental assessment. Without the benefit of an environmental assessment or hazardous material assessment report, this appraisal is predicated on the extraordinary assumption that there are no environmental conditions that adversely affect the value of the property. Therefore, this is an  "unimpaired valuation."  Appraisal Report t-J.J.& H. Violini Company  Page 5  Packet Pg. 151    Extraordinary. Assumption Defined  An assignment-spec/fic assumption as of the effective date regarding uncertain information used inc an analysis which, ifi found to bej false, could alter the appraiser's opinions or conclusions. 1  PURPOSE OFT THE APPRAISAL  The purpose oft the appraisal is to estimate the "fair market value" ofther real propertyi in accordance with California eminent domain civil procedure codes. As per California law the appraisal will address the  following:  1. thet fair market value of the property before thet take; 2. thet fair market value of the part taken; 3. thei fair market value of the remainder as part oft the whole; 4. thet fair market value of the remainder before considering special benefits;and 5. thei fair market value of the remainder considering special benefits. For the purpose oft this appraisal, fair market value is defined as follows:  Fair Market Value Defined  Thej fair market value oft the property takeni is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, ando a buyer, beingi ready, willing, and able to buy but underr no particular necessity fors SO doing, each dealing witht the other withfullk knowledge of all the uses and purposes  for which the property is reasonably adaptable and available.2  TITLE  According to the Monterey County Assessor's Office, title is vested as follows:  JJ.&H. Violini Co.  PROPERTY HISTORY  The Violini Ranch was purchased by the current owners in 1986. There have been no transfers of ownership within the past five years. The property is not currently offered ont the open market and we  are not aware of any purchase options and/oragreements affecting the property.  1 Uniform Standards of Professional Appraisal Practice (USPAP) 2018-2019 Edition. (The Appraisal Foundation, 2 California Code of Civil Procedure - CCP $1263.320 (Amended by Stats. 1992, Ch. 7, Sec. 2. Effective January 1,  2018). p.4. 1993).  Appraisal Report-J.J.& H. Violini Company  Page 6  Packet Pg. 152    PROPERTY RIGHTS APPRAISED Fee Simple Estate Defined  The property rights appraised is thet fee: simple estate.  Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police  power, ande escheat. 3  CLIENT OF THE APPRAISAL INTENDED USERS  The client of this appraisal is the City of Gonzales.  The intended users are the client andi the fee owner of the property. The appraisers are not responsible for any unauthorized use oft this report and are not responsible to any third-party users.  INTENDED USE OFT THE APPRAISAL  The intended use of this appraisal is for1 the client's use pertaining to the purchase of easements on the  subject property as part oft the IWRF project. EFFECTIVE DATE OF THE APPRAISAL  This appraisal assignment represents a current appraisal in which the effective date of the appraisal and  the valuation conclusion apply as of May 8, 2024.  DATE OFI REPORT REPORT FORMAT  This appraisal assignment was conducted in May of 2024.  The report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and fori the intended use stated  above. EXPOSURE TIME  Thet term "exposure time" is defined as  L Dictionary of Real Estate. Appraisal- 6th Edition. Appraisal Institute, 2015,p. 90.  Appraisal Report- -J.J.& H. Violini Company  Page 7  Packet Pg. 153    The estimated length of time the property interest being appraised would have been offered on the market prior to the pothetcalconsummoton ofasaled at market value on the effective date  of the appraisal.*  For the past several years, a strong effective demand exists fori irrigated farmland andi ranch lands located within the Salinas Valley. Turnover is limited and much of the farmland that sells is sold without ever being offered ont the open market. Those farms that are offered on the open market are generally under contract within 30 days and have a 90-day due diligence period. Farm properties that are on the market for more than six months are typically overpriced or have certain physical characteristics that limit their The Violini Ranchi is a prime agricultural farmi that would command: strong demand if offered on1 the open market. Assuming the ranch was offered near market value, an exposure time of 3 to 6 months is  appeal and increase their risk of ownership.  considered reasonable and applied ini this analysis.  LAND ACREAGE DEFINITIONS  Several acreage classifications are used within this appraisal report and are defined as follows:  Gross Acreage  The gross areai is the total land area of the property as legally described, or as indicated by the parcel maps. The gross acreage for this assignment is derived from the Monterey County Assessor Parcel Maps,  which are included ini this report. Non-Usable Farm Acreage Usable Farm Acreage  The non-usable farm acreage is the land that does not provide a utility to the property.  The usable farming acreage is thet total acreage that provides a utilitytot the property andi includes the net  crop acreage, and internal roads and yard areas that service thei farmable acreage.  Net Crop Acreage  The net crop acreage is the net planted acreage, excluding the service acreage of roads, reservoirs, yard areas, and any non-usable areas. Also referred to as the farmable acreage or green-to-green area, the net crop acreage is the area growers utilize for measuring crop production and growing costs.  4lbid.p.83.  Appraisal Report-J.J.& H. Violini Company  Page 8  Packet Pg. 154    Leased Acreage SCOPE OF WORK  The leased acreage is the acreage stated ini the lease that is agreed upon between the lessor and lessee. Wea appraised the subject easements forthe City of Gonzales in 2023. As parto ofthis assignment, the prior appraisal report was reviewed and updated fort this current appraisal report. The property was inspected at the time of the prior report and re-inspected on May 8, 2024. The inspection was from the road frontage and internal ranch roads with the scope of observing the layout and general characteristics of the property. In addition to our inspection, we reviewed parcelmaps, flood maps, aerial photographs sand The gross land area of the propertyi is obtained fromi the Assessor's Parcel Map. The land areas withini the proposed takes are obtained from the draft legal descriptions and take exhibits prepared by Polaris Land The valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records, Multiplel Listing Service (MLS)data,on-lines subscriptionservices: such as CoStar andl LoopNet, real The results of the investigations and the analyses conducted are presented in this appraisal report, and  zoning maps oft the property.  Surveying, copies of which arei included in the addendum of this report.  estate appraisers, and brokers.  were prepared by. John Piini, MAI, and Greg Piini, MAI.  Appraisal Report-J.J.& H. Violini Company  Page 9  Packet Pg. 155    REGIONAL DESCRIPTION  REGIONAL MAP  Seaside  Greentie  Google Earth  LOCATION MAP  Gonzales Citylimits Boundary Subject Property Proposed Conveyance Line Futurel Industrial Wastewater Recycling Facility  Gonzales  Appraisal Report-J.J.& H. Violini Company  Page. 10  Packet Pg. 156    MONTEREY COUNTY  Monterey County is oriented in a north to south direction parallel to the Pacific Ocean. Itis bounded on the north by Santa Cruz County, on the south by San! Luis Obispo County, on the east by San Benito, Kings, Thel largest oft the central coast counties, Monterey County has approximately 100 miles of coastline along the Pacific Ocean and averages 30 miles in width. The county contains 3,324t square miles or 2,127,360t About 439,000 people currently residei ini Monterey County as oft the 2020 Census, whichi isa5.7%i increase from the 2010 Census estimate of about 415,000. The majority of the county's population is located on the Monterey Peninsula and in the greater Salinas area. Over the past several decades, Salinas and the smaller Salinas Valley towns experienced the majority of the county's growth, as the price of land and housing is relatively affordable compared tot thel Monterey Peninsula and the neighboring Santa Clara and Santa Cruz Counties. During this same period, the population on the Monterey Peninsula remained relatively stable due to al limited supply of land that is zoned and suitable for development. The physical and economic characteristics of the county are divided primarily between the Monterey Peninsula and Salinas Valley. The Monterey Peninsula communities of Pebble Beach, Carmel, Pacific Grove andI Monterey are tourist destinations fort the northwesterly portion. Tothe south oft the Monterey Peninsula is the world-renowned Big Sur Coast. On the eastern side of the county lies the Salinas Valley,  and Fresno Counties and ont the west is the Pacific Ocean.  acres.  one of1 the chiefv vegetaDle-producing regions ini the United States.  Salinas Valley  The Salinas Valley is ai fertile agricultural region bounded to the east by the Gabilan Mountain Range and tot the west by the Santa Lucia Mountain Range. The valley begins at San Ardo and widens and stretches This valley is one oft the premier freshy vegetable growing regions int the country and a majority oft the salad greens consumed in the United States are grown here. Strawberries, head lettuce, leaf lettuce, broccoli, celery, artichokes, and a variety of other vegetable crops provide Monterey County with approximately $4.6 billion in gross sales. Due to the intensity and the variety of crops grown, the Salinas Valley is Within the 100-mile stretch of the Salinas' Valley are individual farming districts, distinguished not only by location, but by farming characteristics associated with soil, climate and/or water. East-to-west, soil quality provides the distinction, as the soils ont the valley floor are, fort the most part, fertile clay and loamy soils that are well suited for growing a variety of fresh vegetable crops. Along thei foothills of the Gabilan  approximately 100 miles to the Monterey Bay, near Castroville.  nicknamed "America'sSalad Bowl."  Appraisal Report-J.J.& H. Violini Company  Page. 11  Packet Pg. 157    Range (east side of the valley) and the Sierra de Salinas Range (west side) the soils are generally characterized by decomposed granite (DG)s soils that formedi in alluvium from granitic and schistose rocks on alluvial fans and terraces. These soils are typically well-drained and suitable for growing a variety of crops; however, they generally require al higher degree oft farm management as compared to the soils on North-to-south, climate plays a significant role as the north end of the valley has a cool coastal climate, whereas the south end of the valley is warmer and windier during the growing season. Due primarily to climate, agricultural rents are higher at the north end oft the Salinas Valley as compared to thei farmland int the central and southern portion of the valley. In recent years though, this gap tightened due in part to an expansion of seed varieties, enhancement in irrigation practices and the growth in thei food service segment of the produce industry which has increased the demand for leafy green vegetables such as The economy of the Salinas Valley is centered around the agricultural industry, with irrigated row crops int the Salinas Valley, vineyards in the foothills of the Santa Lucia and Gabilan Ranges, and cattle grazing throughout the more mountainous areas of these Coastal Ranges. Agricultural crop values are egnificantyhghertoday than what existedac decade ago; however, the past few agriculture seasonswere unusually challenging to the local industry. The COVID-19 pandemic, a relatively new increase in lettuce losses from Impatiens Necrotic Spot Virus (INSV) and Pythium wilt, continued labor shortages, increasing food safety regulations, the uncertainty of future water regulations under California's Sustainable Groundwater Management Act (SGMA), and risingi inflation andi interest rates have impacted the produce  the valley floor.  spinach and leaf lettuces that have shorter growing periods.  industry.  Appraisal Report- -J.J. & H. Violini Company  Page 12  Packet Pg. 158    Salinas Valley Water  Water for the Salinas Valley is derived mainly through groundwater wells penetrating 100 to 1,700 feet into the Salinas Valley Water Basin. The Salinas Valley Basin has a single common aquifer that is divided into six hydrologically interconnected subbasins known as the 180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Forebay Aquifer Subbasin, Langley Area Subbasin, and Monterey Subbasin. These basins are depicted int the mapi tot the right. These basins are recharged by the Salinas River and its tributaries, winter rain runoff from the bordering Gabilan and Sierra de Salinas Mountain ranges, and dam water discharges from the Nacimiento Reservoir (constructed 1955) and the San Antonio  Reservoir (constructed 1963). These natural and man-made sources feed the basins; however, it is not enough. The! Salinas' Valley, especially at ther north end, extracts more water than is replenished, resulting Over drafting of groundwater is not unique tot the Salinas' Valley! but is occurring throughout California. As aresult, California passed the Sustainable Groundwater Management Act (SGMA) in 2014, which requires California governments andy water agencies to developa a Comprehensive Groundwater Sustainabilityl Plan (GSP), which will establishi the means and methods of achieving waters sustainability, andi then implement the GSP and achieve basin sustainability within 20 years after approval of the GSP. In the Salinas Valley, the Salinas' Valley Basin Groundwater Sustainability Agency (SVBGSA) is aj joint powers authority that was Each subbasin's GSP was approved in 2022. The approved GSP's indicate that the northerly four basins (180/400 Foot Aquifer Subbasin, East Side. Aquifer Subbasin, Langley Area Subbasin, and the Monterey Subbasin) arei in an overdraft condition, while thet two: southern basins (Forebay Aquiferand Upper Valley  ins seawater intrusion and a shrinking water supply amongst the older shallow wells.  established tot fulfill the requirements of SGMA.  Aquifer) are in al balanced: state.  The Violini Ranchi is withini the 180/400 Foot Aquifer.  Appraisal Report-J.J.& H. Violini Company  Page 13  Packet Pg. 159    GONZALES  Gonzales is centrally located within the Salinas Valley and is approximately 15 miles south of the City of Salinas. Thet town has a population of 8,439 peoples. Over the past several decades, thet town has grown as its proximity to! Salinas andi its lower relative price of housing has brought an influx of commuter-based  residents; however, the town remains an agricultural-Dased community.  SU.S. Census Bureau. 2022 Population Estimate Program (PEP).  Appraisal Report-J.J.& H. Violini Company  Page. 14  Packet Pg. 160    PROPERTYI DESCRIPTION  AERIAL PHOTOGRAPH  APN223-011-036  Googlet Earth ASSESSOR'SPARCEL MAP  TAX AREA BOKALeE BOOE 20  OF MORIENE! MAP BOOK 223 PAGEOI  03  STATE  ANGHIWAY  NO 101 em02 @ae har  O of  DETANL  Cei  LA. AENT AroNTERa. DE 06K 945 1 AAK: 1842 BAEBA4 OF 188f3 34 82/6 COTWRUSO.  PARAI  8081SAT 33, PARTITION. MAP F K GONZALES ESTATE LOTSITHRUA MS, 127 ASSRS:. MAP GUADALUPE Ro Lore 283 32f33.  aoiw)  Appraisal Report-J.J.& H. Violini Company  Page 15  Packet Pg. 161    SUBJECT PHOTOGRAPH  Northwest boundary of Violini Ranch (right) and location of SSE and TCE.  LOCATION  The Violini Ranch is located toi the west of Gonzales, approximately 12% miles tot the south of Salinas and This location is within ani intensive farming district of the Salinas Valleyt that is characterized byt fertile soils, an ample supply of water and at temperate coastal climate. Most of the farmland in this area is double  8% miles to the north of Soledad.  cropped annually fora a variety off fresh vegetable crops.  The property is surrounded" by farmland that used fori irrigated row crops.  LAND AREA acres.  The ranch is situated on an upper bench of the Salinas Valley with ag gross and usable land area of 156.0+  Soils & Topography  The soili is Cropley silty clay (CnA). This is a nearly level soil (Oto 2% slopes) that is well drained and hasa silty clay texture. The soil is a common soil found throughout the north end of the Salinas Valley and is suitable for most of the row crops grown in the area. While the Monterey County Soil Survey identifies  the soil as Class 2, the local farming community regards it as aj prime fertile: soil.  ACCESS  Access is provided by Gonzales River Road. Appraisal Report-J.J.& H. Violini Company  Page 16  Packet Pg. 162    IRRIGATION WATER  Irrigation water for the Violini Ranch is provided from underground groundwater wells and underground irrigation pipelines. Details about the irrigation system were not provided. This appraisal assumes the  water quality and quantity is suitable for the agricultural use.  BUILDINGI IMPROVEMENTS  Building improvements are limited to one metal utility building located near the road frontage. The building measures approximately 2,880 square feet and is al low-cost structure int fair condition.  HAZARDS Flood Hazard  The ranch is identified on FEMA's Flood Insurance Rate Map (FIRM) panels 06053C0414G and 06053C0600G, both dated April2, 2009. These panels indicatei that the ranch is located within Zone X, an  area outside the 0.2% annual chance floodplain.  Seismic Hazard  The property is located within a seismically active area of California but is not located within a Alquist- Priolo Special Studies Zone. The nearest fault is the Reliz Fault, which runs along the base of the Santa  Lucia Mountain Range, about 2.0t miles west oft thes subject property.  ASSESSED' VALUATION &1 TAXES Assessed Valuation & Taxes  The assessed valuation and real estate taxes for1 the 2023-2024 tax year are: summarized as follows:  Assessed Values Improvement  2023-2024 Taxes Countywide &  APN 223-011-036 Total Averaget tax rate Average per usableacre Land Conservation Contract  Land Value $3.148.855 $3,148,855 $20,316  Value Total Value Direct Charges Agency Toxes Total Taxes $21,098 $3.169.953 $6.248.30 $36.244.48 $42.492.78 $21,098 $3,169,953 $6,248.30 $36,244.48 $42,492.78  1.14%  $272.34  The ranch is subject to al Land Conservation Contracts (LCC) with the County ofl Monterey. LCCs are often referred to as Williamson Act Contracts, which, in California, provide tax relief to agricultural property owners who contract with their county to restrict the use of the property during the contract period to  agricultural and open space use.  Appraisal Report-J.J.& H. Violini Company  Page 17  Packet Pg. 163    As standard LCCi is a minimum of 10 years and under this contract the assessed valuation is predicated on the agriculturali income value ofthe property. AFarmland: Security Zone (FSZ) contract has a 20-yearterm and under this type of contract, the assessed valuation is based on 65% of the California Proposition 136 valuation or Williamson valuation, whichever is less. AIII land conservation contracts automatically renew The Violini Ranch is not enrolled in an FSZ contract. The land value shown above is the Proposition 13  annually for an additional year, unless either party files a' "notice of non-renewal". adjusted base year value. The restricted Williamson Act value is $4,849,386.  PROPERTY RIGHTS  A preliminary title report was not provided; however, we are aware ofa few easements on this property  that are pertinent toi this assignment. These easements are: summarized as follows:  Agricultural Conservation Easement  The Violini Ranch is subject to an agricultural conservation easement that dates back to 2000 with the Ag Land Trust. The easement is intended to preserve the ranch's prime agricultural usei inj perpetuity.  LAND USE POLICIES  The Violini Ranch is located within an unincorporated area that is under the land use jurisdiction of Monterey County. The ranch is located within Gonzales' sphere of influence but outside of the urban growth boundary and outside of the City's permanent agricultural edge, which runs along the city limits boundary in the vicinity of the subject property and would preclude expansion to the west. The ranch is designated as' "Agricultural" byt thel Monterey County General Plan. Agricultural lands willi fall within thet three land use categories, andi the Violini Ranch is categorized as Farmlands. The General Plan  defines Farmlands as follows:  Farmlands (F): Farmlands are typically 40-acre minimum sites, and allow a range of uses to conserve and enhance the use of the important farmlands in the County of Monterey while also providing opportunity to establish necessary. support and ancillary facilities for those agricultural  uses.  51 In 1978 California voters approved Proposition 13, which limits the maximum amount of any ad valorem tax on real property to one percent (1%6) of the assessed value plus approved bonds and assessments; and it placed a maximum of 2% per year that the assessed value couldi increase, unless thep property has a change of ownership.  Appraisal Report -J.J.& H. Violini Company  Page 18  Packet Pg. 164    Consistent with the General Plan, the Violini Ranch is zoned Farmlands (F-40). The minimum parcel size  requirement for creating a new parcel is 40 acres. Highest and best use is defined as follows:  HIGHEST & BEST USE  The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial  feasibility, and maximum productivity.?  AslfVacant  The property is located within an intensive farming district oft the Salinas Valley where the historical use oft thes subject propertyanda adjoining properties is dedicated to an irrigated row crop agriculturaluse. Land use policies are also oriented toward an agricultural use, and the existing agricultural conservation Therefore, the highest and best use of the property is agriculture and the most probable agricultural use  easement would preclude the conversion of thet farmland to anon-agrcuturaluse.  isi irrigated row crop farming of fresh vegetables.  As Improved  Thei irrigation wells and pipelines support the highest and best use of thel land and their value is included  int the underlying land value.  Building improvements are limited to a small farm utility building. The building provides utility to the  agricultural operation and supports the highest and best use of the land.  VALUATION COMMENTS  The purpose oft the appraisal is to estimate the "fair market value" oft the real propertyi in accordance with California eminent domain civil procedure codes. As per California law the valuation process involves  several steps which are. summarized as follows:  1) thei fair market value of the property before thei take; 2) thei fair market value of the part taken; 3) thei fair market value of the remainder as part of the whole; 4) thet fair market value of the remainder before considering special benefits; and 5) thei fair market value of the remainder considering special benefits. 7D Dictionary of Real Estate Appraisal- - 6th Edition. (Chicago: Appraisal Institute, 2015)p.109  Appraisal Report-J..& H. Violini Company  Page 19  Packet Pg. 165    FAIRI MARKET VALUE OF THE PROPERTY BEFORE THE TAKE  The sales comparison and income approach are used to estimate the fair market value of the property, which aret thet two common methods utilized int the valuation of Salinas' Valley farmland. Inapplyingthese appraisal methods, the components of value include the land and the land improvements, which consist ofthei irrigation wells, pumping plants andi irrigation pipeline. Int the Salinas Valley, the contributory value of the land improvements is included in the land value and the common unit of measurement for In the sales comparison approach, an opinion of value is derived by analyzing and comparing similar properties that have recently sold, are listed fors sale, or are under contact. A major premise of the sales comparison approach is that the market value of a property is related to what is being paid for Thei income approachi is applicable as Salinas' Valleyfarmlandi is commonlyr rented and therei isaveryactive market of real estate investors. From an investor's point-of-view, earning power is the critical element affecting property value. One basic premise of this approach is that the higher the earnings, the higher The most common income valuation technique is the direct capitalization method, which employs the  comparison purposes is the price per usable acre.  comparable, competitive properties.  the value, provided the amount ofr risk remains constant.  following relatively simple algebraic formula:  Income /C Overall Rate = Value  The income is the market rental value of the farmland and the overall rate represents the rate of return that is being obtained within the marketplace for similar properties. This approach is commonly applied int the Salinas Valley by the market participants. Even buyers who intend to farm the property consider value based on1 the relationship between a property/seconomic rental value andi the price to be paid.  SALES COMPARISON APPROACH indicative of value:  Ina applying the sales comparisonapproach, thei following sales are judged tol be the most comparable and  Appraisal Report-J.J.& H. Violini Company  Page 20  Packet Pg. 166    Summaryofformlends Sales Salen number Ranchr name Salec date Location Nearestcity Grantor Grantee Grossa acreage Nonf farmablea acreage Other landu useacreage Usablea andi irrigatedf farma acreage Saleprice  Wing Massa 305.7 0.0 2.2 305.7  Wimer  Harney  Vosti Nielson Vosti C.M. NielsenP Ptn 95.4 0.0 p.0 95.4  Herold Breschini  Hunter  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 10/27/2023 6/30/2023 Chualar CynRd Highway 101 SpenceR Rd River Rd Olds Stage Rd Alta Street Hwy 101 Hunter Lane Chualar Chualar Chualar Gonzales Salinas Gonzales Soledad Salinas YellowJuliet Gill& Hitcock Springbrook D'Arrigo C.M. NielsenP Ptn D'Arrigo Caprara  Wimer Clayton 138.6 5.0 p.0 133.6  Meyers Breschini Duckworth  Rocha 82.8 0.0 0.0 82.8  147.0 1.0 po 146.0  188.5 0.0 10 187.5  560.4 0.8 21.6 538.0  179.7 50.7 0.2 129.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $10,000,000 $7,200,000  Priceperu usableacre lands &impr) $60,500 $61,200 $64.700 $66,000 $68,700 $77,100 $77,500 $87,000  Sales Location Map  GoogleEarth  Appraisal Report-J J.J.& H. Violini Company  Page 21  Packet Pg. 167    Sale 1: Wing Ranch, Chualar The Wing Ranch is located on the east side of Highway 101, just north of Chualar and approximately 7 miles southeast of Salinas. This is within an intensive agricultural area where most of the farmland is dedicated to The property has a level topography with Placentia sandy loam and Chualar loam soils. These are decomposed granite (DG) soils that  row cropi farming.  arei inferior tot those ont thes subject propertyasthey require ar relatively high degree off farm management. The entire property is usable with several wells that are interconnected with underground high pressure irrigation lines. According to the seller, the wells were in good condition and provided adequate water The property was not on the open market and there was limited market exposure. Thet tenant was at the end of their lease term and the property sold to an investor who renewed the leased with the existing tenant. The new lease was for a three-year term at a rental rate that is confidential. The contract rent, though, is nearr market, which, inthis area, variest from about522001052,600; Perate,mcudingpoper,  with ag good water quality.  taxes. The property sold for $18,500,000, or $60,500 per acre.  Sale 2: Wimer Ranch, Chualar The Wimer Ranchi isl located ont the east side of Highway 101, between Chualar and Gonzales and about 9 miles south of Salinas. The ranch has direct northand: south bound access tot the highway. This location is within an intensive agricultural area where most of the farmland is dedicated to row crop farming.  This property has an irregular shape as the Sooglefarts  northerly boundary oft the ranch borders and open reclamation ditch. The usable land areai is 133.64 acres, and the net crop area is 128t acres. The soils consist of Salinas loam (SaA) and Salinas clay loam (SbA), which are Class 1 soils suitable for growing a variety of crops. Irrigation water is provided from one well that yielded about 12 gpm per net acre. Building improvements include one 1,800 square foot pre- engineered: agriculturalutility-storagebuliding. The building is about 30 years old, of average quality,and  Appraisal Report- -J.J.& H. Violini Company  Page 22  Packet Pg. 168    ing good condition. According tot the buyer, the building contributed an added value.  The property was not on the open market and sold directly to the long-term tenant for $8,174,000. An allocation of $74,0001 is applied tot the shop building and $8,100,0001 for the farmland which equates toa  rounded land value of $60,600 per usable acre. Sale 3: Harney Ranch, Chualar The Harney Ranchi is located 4.21 miles south of Salinas and 3 miles north of Chualar. The property fronts the south side of Spence Road, between Highway 101 and Old Stage The property has al levelterrain, and1 the soilis Chualar loam with a Oto 2% slope. Irrigation water is provided from two wells with a combined capacity of 2,500 gpm plus there was at third well used mostly for dust control  Road.  and for the buildings.  The propertyl had been leasedi to Tanimura and Antlet for several decades. At thet time ofsale, the property was farmed in strawberries and vegetables. According to thei tenant, during the 2021 and 2022 seasons this ranch suffered heavy losses to their late summer andi fall lettuce crops because oft the INVS virus. Att thet time ofsale, the property was subject toat three-yearl Lease with one year remaining and onei three- year option to renew. The contract rent, including property taxes was! $2,490 per usable acre. This property was offered for sale in June 2023 at an asking price of $9,900,000. The demand for the property was limited due in part to the INVS virus, and the increase in interest rates. Piini Realty represented the buyer, who is a local strawberry grower, and purchase price was $9,450,000. The buyer was able to take over the farming operation at the end of the 2023 season and intends to transition the  ranch to organic with strawberries being the primary crop.  Appraisal Report-J.J.8 & H. Violini Company  Page 23  Packet Pg. 169    Sale 4: Vosti Ranch, Gonzales The Vosti Ranch is a 95-acre row crop ranch located on the south side of Gonzales River Road, adjacent to the city limits of Gonzales. The land uses include irrigated row crop farming on the properties outside the city limits and industrial for the adjoining properties within the city limits. The Gonzales General Plan identifies the Vosti Ranch as being within their sphere-ot-influence for futurei industrialuse. Developingthis property  Goopkiwth  for industrial, though, is problematic as a condition of development would likely require constructing: a This property has level, Class 1 and 2 soils that are considered prime and very similar to the subject property and suitable for a wide variety of fresh vegetable crops. Irrigation water is provided from a 38.23% interest in two wells that are shared between the Vosti Ranch and the neighboring property to the south, which has a61.77%i interesti ine each well. Buldingimprovements include one older farmhouse, two old barns, and two older farm labor houses. The improvements were in poor condition and did not The property was listedi for sale with Piini Realty; however, att the request oft the sellers, it was only offered to the tenant and the adjoining owner, and was purchased by the long-term tenant. The purchase price was reflective primarily of the property's agricultural use. The buyer and seller considered industrial development as being a long-term speculative use and the buyer was motivated to sell the property in  new SPRR crossing, which would require SPRR's permission.  contribute an added value.  2020.  Sale 5: Nielson Ranch, Salinas The Nielsen Ranch is located about 5 miles south of Salinas on1 the east side oft the Salinas Valley, adjacent to the base of the Gabilan Being at the base of this mountain range, the farmland in this area is characterized by decomposed, granite soils that are abrasive on equipment and require a higher degree of farm management as compared to the Appraisal Report -J.J.& H. Violini Company  Mountain Range.  Page 24  Packet Pg. 170    farmland along the valley floor of the Salinas Valley. The primary crops grown in this area are fresh vegetables. Strawberries are also grown int this area; however, this is at the southern fringe for berries. The water resource at thel base oft the Gabilan Range is limited as this Eastside Aquifer relies primarily on winter rain runoff from the Gabilan Range and less from the Salinas River. Groundwater wells in the Eastside Aquifer are mostly developed to about 500 to 800 feet and the better producing wells are generally found at the westerly end of this area. The primary groundwater well for the property was developed in 2001 and improved with a 300 hp pump and a' VFD motor. During the past few years this well was drawing sand and sandi filters were installed to mitigate the sand clogging the sprinklers and drip emitters. A1950 well, which was equipped with a 300hp diesel motor, was a backup well though it was The Nielsen Ranch contains a gross land area of 187.5 acres and a net farming area of 176 acres. The terrain is gently sloping, and soils are decomposed granite, composed mostly of Chualar loam. The property has been mostly farmed for vegetable crops, with occasional rotations of strawberries. This property was offered for sale in May 2021 by Piini Realty and the offering included an adjoining 1- acre parcelt that was improved witha an oldersingle-family dwellingt that was in good condition. Inaddition, the offering took into consideration a potential tax savings if a buyer were to acquire the existing partnership, avoiding reassessment. Maintaining the existing taxes saves approximately $65,000ayear, which was estimated to contribute approximately $400,000 in value based on the present value of the The property went into escrow with the long-term tenant at $13,600,000. During escrow, the main irrigation well started drawing sand. It was believed that ar new well would be necessarywithin the next five years, and a $223,350 credit was provided to the buyers. The credit was assumed to be 50% of the cost of a new well. An additional credit of $5,000 was provided to the buyers for the cost of removing Thet final sale price for the farmland and residential parcel was $13,371,650, allocated as follows:  relatively high in salts.  income for: 10 years at 10%.  personal property from the residential property.  Sale Allocation Description Farmland Residential parcel Totals  Acres 187.5 1.0 188.5  Price $12,876,650 $495.000 $13,371,650  Price/Acre $68,675 n/a $70,937  Appraisal Report-J.J.& H. Violini Company  Page 25  Packet Pg. 171    Sale 6: Herold Ranch, Gonzales The Herold Ranch involves 560.4 acres of prime farmland located ont the west side oft the City of Gonzales, extending toward the Salinas River and Gonzales' wastewater treatment facility. The ranchi is located to thei immediate north of the subject property. The farmland is on two benches, with 430t acres of upper bench farmland that has a  uniform Cropley silty clay soil, 130t acres on a lower bench with sandier soils, and 0.8t acres on a bank that separates the two benches. The upper bench acreage includes 21.6t acres that are located within the city limits of Gonzales and zoned industrial. The 538.8t acres situated outside the city limits are subject to an Agricultural Conservation Easement and a Farmland Security Zone Contract. Five wells provide irrigation watert to the ranch witha a combined capacity of5,550 gallons per minute that There are two building yards on the ranch. At the northeast corner and situated within the city limits of Gonzales is a 60t-year old labor camp that is commercially operated as an H2A facility and permitted for 120L beds. The labor camp hast four dormitorystylel buildings, an olders single-family dwellng,acommercial kitchen-dining room, restroom, and laundry facilities. Based on bedroom sizes and the H2A requirement of one bed per 50 square feet, this facility could possibly accommodate 141 beds. City water and city The second building yard is an agricultural yard improved with an older, low-cost single-family dwelling, wood barn and an equipment shed. These improvements provide utility to the farming operation but did The property was leased through October 31, 2020, at a gross rent of $2,070 per acre. Market rents in the immediate area at the time of sale varied from about $2,000 to $2,500 per acre, including property taxes. Turnover of prime farmland in the Gonzales area is rare as most tenants have a long-term relationship with their landlord, and landlords in general are not overly aggressive on lease renewals. Thel Herold Ranch was offered ont the open market by Piini Realty in September 2019. Several offers were received andi the property sold for $41,500,000 inJ January 2020. The buyers allocated $5,000,000 to the  is distributed by underground high-pressure lines.  sewer: serves the labor camp.  not contribute an added value.  21.6 acres ofi industrial-zoned land and the labor camp, summarized as follows:  Appraisal Report -J.J.& H. Violini Company  Page 26  Packet Pg. 172    Sale price Farmland allocation Usablet farma acres Price per usable acre (rounded)  $41,500,000 $5.000.000 $36,500,000 538.00 $67,800  Less: Buyer allocationi toi industrially: zoned lands andf farml labor camp  Sale 7: Breschini Ranch, Hwy 101,Soledad The Breschini Ranch is a 2023 farmland sale located on the west side of Highway between Soledad and Greenfield. Access is provided from a paved frontage road to Highway 101. Irrigated row crop farming is the primary use int the general area oft the sale and agricultural rents vary from about $1,500 to $1,800 per acre, including property taxes.  3o6gleEarth  This property has a gross land area of about 180 acres ande extends from Highway: 101 tot the Salinas River. Approximately 50 acres are in the river and the usable land areai is 130t acres. The soil consists of about 75% Elder sandy loam and 25% Arroyo Seco gravelly loam. These are well drained soils that formed in granitic alluvium and sedimentary rocks. Irrigation water is provided from two groundwater wells and reportedly the water quantity is abundant, and the quality is very good. Building improvements include an older single-family dwelling and several outbuildings, alli in very poor condition and unoccupied. This property was not on the open market and sold directly to thet tenant, who farms and owns several other properties int thei immediate area. The propertysoldf for $10,000,000, whichi is an exceptionally! high price compared to other sales and agricultural rents. Applying a relatively high gross rent of $1,800 per acre, the net return after property taxes is 1.5%, which is one of the lowest rates of return in the Salinas Valley. In the final analysis, this sale is excluded as direct market comparable as it is considered an  aberration within the market and not indicative of market value.  Appraisal Report- -J.J.& H. Violini Company  Page 27  Packet Pg. 173    Sale 8: Hunter Lane Ranch, Salinas The Hunter Ranch is located 0.7 miles southwest of Salinas and is within the Spreckels District of the Salinas Valley. The Spreckels Districti is bounded by Highway68to the west, the Salinas River and the town of Spreckels to the south, Abbott Road and Highway 101 to the north and the Salinas River and the former Firestone plant representing the easterly end.  This area is known fori its loamy soils, good water quality and a coastal climate suitable for strawberries and a variety of Salinas Valley vegetable crops including late-summer lettuce. Rents in this area trail slightly behind the Blanco area and range from about $3,500 to $4,000 per acre. Similar to the Blanco This property is situated on the south side of Hunter Lane and has a rectangular shape and level topography. The soili is mostly composed of Salinas series soil, which is a prime soil with few limitations and capable of growing a wide variety of fresh vegetables and strawberries. The property is improved with one older groundwater wellt that was developed in 1963 to a depth of 256f feet and one older single- family dwelling. The well casing is deteriorating and will need to be replaced within a few years. The estimated cost to develop a new well into the 400-foot aquifer was $320,000, which the buyer plans to do. The dwelling was in poor condition and the buyer anticipates spending about $100,000t to $150,000 on house improvement repairs after the sale andi then use the house for employee housing. In the as-is The property was leased for ai three-year term with a termination date of October 31, 2025. The gross The property was listed with Piini Realty in Aprild of 2023 at an asking price of $90,000 per acre, was under contract ati thel beginning of June, and closed escrow on. June 30th for $87,000 per acre. While the buyer isal local strawberry grower, they intend to continue leasing the property to the existing tenant as their Thel buyers intend to enteri the propertyi into al Farmland Security Zone contract and: spend about $320,000 on capital improvements for a new well resulting in at total investment of $7,520,000. Based on the lease terms and projected property taxes, the overall rate of return is about 2.9% in Year 1 and increases to  District, farmland turnovers int the Spreckels District are rare.  condition of the dwelling, it did not contribute an added value nora cost to remove.  rent obligation of thet tenant was $3,600 per acre.  motivation ist for al long-term passive investment.  about 3.5% in' Year 3.  Appraisal Report-J.J.& H. Violini Company  Page 28  Packet Pg. 174    Sale Adjustments Property Rights Conveyed  The Violini Ranch is subject to an agricultural conservation easement; however, Sale 6i is also subject to an agricultural conservation easement and the easement did not affect the sale of that property. Itis estimated that there would be strong demand fort the Violini Ranchi for a continued agricultural use even with this easement and, therefore, property rightsa adjustment is not applied to these sales.  Financing Terms warranted. Conditions of Sale  The sales either involved cash sales or conventional financing. A financing terms adjustment is not  The sales were all arms-length transactions and a conditions of sale adjustment is not warranted.  Expenditures After Sale  Sale 5a and 8 will require new wells. The buyer of Sale 5 was credited $223,350 in escrow for half the cost of a new well. This credit is added to the purchase price as an after-sale expenditure. The cost of a new well on Sale 8 was estimated at $320,000, whichi is added as an after-sale expenditure.  Market Conditions  The sales occurred between January 2020 and September 2023. During this period, interest rates and inflation were increasing, and agricultural rents were generally appreciating at a rate of2.0%1 to3 3.0% per year. During this period, two relatively similar properties sold, providing a direct indication as to the change ini farmland prices. AI paired sale comparison betweent the 2020 purchase oft the Wing Ranch (Sale  1)and the 2023 sale of the Harney Ranch (Sale 3) indicates thei following:  Market Conditions, Adjustment Sale number Ranch name Area Sale date Usablef farmacreage Farmland allocation per acre Agricultural. adjustment Adjusted farmland alloc/acre Annual %0 change  to  3 Harney Chualar 9/5/2023 146.0 $64,726 0.0% $64,726  Difference  Wing Chualar 11/2/2020 305.7 $60,517 0.0% $60,517  2.84  7.0% 2.4%  Appraisal Report- -J.J.& H. Violini Company  Page 29  Packet Pg. 175    Based in part on1 the above an annualt time adjustment of 2.5% is applied tot the 2020to 2022: sales through the end of 2023. An adjustment, though, is not applied to Sale 5, which sold in 2021 at a high price that is considered indicative of current market conditions. A market adjustment is also not applied tot the 2023 sales as they are considered indicative of market conditions as of the valuation date.  Agricultural. Adjustment  The agricultural adjustment pertains to the difference in soil, water and climate between the sales and thes subject. The adjustments applied are predicated oni internal comparisons betweent these sales as well asa comparison of rental values. The following paired sale comparisons are considered in determining  appropriate agricultural adjustments.  Location Adjustment Sale Comparison #1 Sale number Ranchname Area Sale date Usablef farma acreage Farmland allocation per acre indicated % difference Sale Comparison #2 Sale number Ranchname Area Saled date Usablef farm acreage Farmland allocation per acre Market conditions adjustment Adjusted price pera acre indicated % difference Size  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 9.2%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 12.1%  Wing Chualar 11/2/2020 305.7 $60,500  8 Hunter Salinas 6/30/2023 82.8 $90,876 0.0% $90,876  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 7.9% $71,284 21.6%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 10.0% $74,619 -17.9%  Generally, there is ani inverse relationshipi in unit prices based on size; however, int the Salinas Valley there is typically not a significant per-acre difference for farm properties. Institutional investors and many growers prefer 200 to 500 acres to 20 to 100 acres because of economies of scale and the efficiency of farming al larger property. Therefore, a size adjustment is not applied to these sales.  Appraisal Report-J.J.& H. Violini Company  Page 30  Packet Pg. 176    Sale Adjustment. Summary  The following tables summarize the adjustments applied toi the sales.  Adjustment Summary Sale number Ranchr name Salec date Location Nearestcity Usablefarma acres Salep price Non-farmlanda allocations Farmland allocation Property rights adjustment Adjusteds salep price Expenditures afters sale Adjusted salep price Adjusted pricep per usableacre Market conditions adj. @2.5% Adjusted price per usablea acre Agriculturala adjustment Adjusted pricep per usable acre( (rnd $71,800  Wing Wimer Chualar Chualar 305.7 133.6 $o $74.000 $0 $0 $60,517 7.9% $65,304 10.0%  Harney  Vosti  Nielson  Herold  Hunter Salinas 82.8 sO SQ  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023 Chualar CynRd Highway 101 SpenceRd River Rd Olds StageR Rd Alta Street Hunter Lane $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $11,981,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,205,000 $36,500,000 $7,520,000  Chualar Gonzales 146.0 $0 $0 $0 $64,726 0.0% $64,726 10.0% $71,200  Salinas Gonzales 187.5 $0 $495.000 $5.000.000 $0 $400.000 $0 $223.350 $66,038 $65,093 7.9% 0.0% $71,284 $65,093 0.0% Z.5% $71,300 $70,000  95.4  538.0  $0 $0 $61,718 5.6% $65,190 Z.5% $70,100  $0 $0 $320.000 $67,844 $90,876 10.0% 0.0% $74,619 $90,876 0.0% -20.0% $74,600 $72,700  The above table provides an adjusted range of $70,000 to $74,600 per usable acre. Sale 6 provides the highest indication, but thisi is alsot the oldest salei included int this analysis and considering the more recent sales, a lower value is appropriate. The remaining sales provide a range of $70,000 to $72,700 per acre from which a value of $71,500 is concluded for the Violini Ranch from the sales comparison approach.  Hence, Land area (acres) Land value per squaref foot Land valuef fromt the sales comparison: approach Rounded to nearest $1,000  156.0 $71,500 $11,156,145 $11,156,000  Appraisal Report- -J.J.& H. Violini Company  Page. 31  Packet Pg. 177    INCOME APPROACH  The income approach is based upon the economic principle of anticipation that value is created by the expectation of benefits to be derived in the future. There are a variety of income approaches, of which the Direct Capitalization Method is employed for estimating the fee simple land value. The Direct Capitalization Method applies an overall capitalization rate to a single year's net operating income (NOI). By dividing the NOI by an appropriate capitalization rate, the value estimate by the income approach is derived. This is an appropriate method whent thei income stream, either actual or estimated, is generated  by rental rates at or neart thei fair market level.  Gross Market Rent value is defined as:  Thei first step in applying the income approach requires estimating the market rental value. Market rental  The most probable rent that a property should bring in a competitive and open market reflecting the conditions andi restrictions ofas specified lease agreement, including ther rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and  purchase options, and tenant improvements (TI's).8  Int the Salinas' Valley, most leases are written ona a net basis witht thei tenant responsible for property taxes. If property taxes were relatively similar amongst agricultural properties, the economic rent would be derived strictly from comparing net rents. However, because of California's Proposition 13 tax code and CSIP fees, the assessed valuation amongst properties can vary depending upon when the last transfer occurred or whether it is within CSIP. Hence, property taxes are not consistent from one property to the next, and to accurately compare the rental value of properties the appropriate unit of measuring is the Ine estimating the gross market rental value, we conducted: ani investigation into agricultural rents involving irrigated farmland located ini the central portion oft the Salinas Valley. Theg general area oft this market rent  "gross rent" paid by the tenant, which consists of the net rent and property taxes.  investigation is depicted in thet following:  Dictionary of Real Estate Appraisal- - 6th Edition, Appraisal Institute; p. 140.  Appraisal Report -J.J.& H. Violini Company  Page. 32  Packet Pg. 178    GoogleEarth  Within the area depicted above, 11 comparable leases are considered in estimating the market rental value oft the subject property. Duei toi the confidential nature of leases, the parties and/or properties are  not specifically identified, but are: summarized as follows:  Summary of Comparable Farm Leases Lease No. Area  Soil Summary 096/100%/0% 09/1009/0% 17%6/819/2% 09/100%/0% 0%/100%/0% 259/75%/0% 09/100%/0% 5%/90%/5% 2596/759/0% 096/096/100% 0%/100%/0%  2024 Season Gross Rent $2,260 $2,410 $2,424 $2,430 $2,500 $2,515 $2,560 $2,600 $2,615 $2,630 $2,840  Lease Term Sandy/Clay Loams/DGs  Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Gonzales to Soledad Salinas to Chualar Chualar to Gonzales  2023-2025 2022-2025 2024-2027 2022-2025 2023-2026 2021-2024 2023-2026 2023-2026 2021-2025 2023-2026 2021-2024  3  8 10 11  Appraisal Report-J.J.& H. Violini Company  Page. 33  Packet Pg. 179    The above table provides an overall range of $2,2601 to $2,840 per acre. Within this range, Leases 2to 10 provide the greatest comparability to the subject property and indicate a range of $2,410 to $2,630 per acre. In consideration fort thes soils and water improvements, ar rent at1 the mid-to-upper end of this range would be expected, and a gross rent of $2,600 per acre is concluded as the market rent of the Violini  Ranch. Expenses  Property taxes represent the primary expense item int this valuation. As noted previously, the property is subject to a Land Conservation Contract but is not subject to al Farmland Security Zone contract. In the event ofas sale, the property willl be re-assessment under California's Proposition13 property tax code to Int the income approach, the property taxes assume the property is under an FSZ contract. The property taxes under an FSZ contract are accounted for by adding direct property taxes as a line item and adding However, because the propertyi is not currently enrolled in an FSZ contract, al buyer will not realizet thei tax savings of an FSZ contract until the 2025-2026: tax year. Therefore, the added taxes during this period of  the lesser of the propertysPropostion 13 value or Williamson Act value.  65% of the property tax ratet to the capitalization rate.  time are deducted from the capitalized value.  Capitalization Rate  Ine estimating an appropriate capitalization rate, consideration is given to the sales included in the sales  comparison approach. The market data is summarized as follows:  SummaryofR Farmland Capitalization Rates Sale number Ranch name Sale date Location Usablef farm acres Farmland allocation Expenditures after sale Adjusted farmland allocation Farmland allocationp pera acre Grossi incomep per acre Propertyt taxe estimate upons sale Neti incomep pera acre Capitalization rate  Wing 305.7 $0 $60,500 $61,700 $2,465 $465 $2,000 3.3%  Wimer 133.6 SQ $2,600 $475 $2,125 3.4%  Harney 146.0 $0 $64,700 $2,485 $490 $1,995 3.1%  Vosti Nielson 95.4 187.5 $o $223.350 $66,000 $67,200 $2,500 $2,600 $750 $250 $1,750 $2,350 2.7% 3.5%  Herold Hunter 538.0 82.8 $0 $320.000 $67,800 $90,900 $2,500 $3,600 $505 $715 $1,995 $2,885 2.9% 3.2%  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,605,000 $36,500,000 $7,520,000  Chualar Cyn Rd Highway: 101 SpenceRd  River Rd OidStageRd Alta Street Hunter Lane  Appraisal Report -J.J.&. H. Violini Company  Page 34  Packet Pg. 180    The above table provides a range of 2.7% to 3.5%. Sale 4 at 2.7% provides the lowest indication and is neart the subject property; however, this ranch has a long-term potential for industrial development and arate above 2.7% applies to the subject property. The remaining sales provide a range of 2.9%1 to 3.5%. While rates have been trending upwards in recent years, iti is estimated that demand would be strong for the subject property duet toi itssoils, location, and water quality. Aratet towardi the lower end oft this range  isa appropriate, and a rate of 3.0% is applied. Hence,  Usableacres Gross rent per usablea acre Gross annual rent Less: Direct property taxes Net annual income before9 %b basedt taxes Capitalization rate Add: FSZ adjusted tax rate Weighted capitalization rate Capitalized value under al FSZ contract Less: Additional taxes until FSZ enactment Indicated valuet from thei incomea approach Rounded to Value per usableacre FAIRI MARKET VALUE CONCLUSION Valuei indicated fromt the: sales comparison approach Value indicated from thei income approach  156.0 $2,600 $405,678 $6.248 $399,430  3.00% 0.74%  1.14% x 65.0% =  3.74% $10,670,824 $49.000 $10,621,824 $10,622,000 $68,100]  $11,156,145 $10,622,000  The two approaches to value provide the above indications. Greater weight is given to the sales comparison approach due to the market data available, which includes two recent sales of adjacent ranches. Based upon the above, the fair market value of the Violini Ranch before the take is concluded  as follows:  Fair market value oft the property before the take Fair value value per acre (rounded)  $11,000,000 $70,500  Appraisal Report- -J.J.& H. Violini Company  Page. 35  Packet Pg. 181    FAIRI MARKET VALUE OF THE PARTTAKEN  As per thel legal descriptions of the proposed takes, which are included int the addendum, the parts taken  are depicted as follows:  PropertyE Boundary Proposed! SSE! (Approx) Proposed TCE (Approx)  GoogleEarth  The SSE isa wedge-shaped easement that begins at the north corner of the property witha a width of 4.7t feet and runs along the northwest boundary for approximately 891.15tfeet, where it narrows to a point. According to thel legal descriptions included int the addendum, the SSE encumber at total of 3,189t square feet. This appraisal is predicated on the extraordinary assumption that the new conveyance line will be buried to a depth that will not interfere with the farming operation, including deep ripping. The proposed TCE runs along the northwest boundary, varies in width from 5.33 feet to 15.98 feet, and encompasses approximately 0.5t acres, according to the legal description included in the addendum. However, this includes lands within the proposed SSE. Omitting the land within the proposed SSE, the  TCE encumbers approximately 0.44t acres. The proposed easements are summarized as follows:  Appraisal Report-J.J.& H. Violini Company  Page 36  Packet Pg. 182    Take. Summary Description  Square Feet 3,189 22,216 3.189 19,027  Acres 0.07 0.51 0.07 0.44  Sanitary Sewer Easement (SSE) Temporary Contruction Easement (TCE) Less: Area within proposed! SSE Total TCE area outside of proposed SSE EASEMENT #1 (SANITARY SEWER EASEMENT)  TCE  Thei fair market value of the property before thet take was concluded at $70,500 per acre. Thei fair market value of the SSE would be less than the fee simple value because the fee owner retains use of the easement areaf fori internal roads and farming. The value of the SSE is concluded at 50% of the fee value.  Therefore, the value of the part takeni is calculated as follows:  SSE land area (squarefeet) Fee simple! land value per acrel beforet thet take %off fees simplevalue Fairr market value per acre oft the parttaken Fair market value ofthe part taken  3,189  $70,500 50.0%  $35,250 $2,581  EASEMENT #2 (TEMPORARY CONSTRUCTION EASEMENT)  The value oft the TCE is considered later as it is only a temporary taking. The fair market value oft the part taken is concluded as follows:  FAIR MARKET VALUE OF1 THE PARTTAKEN  Fair market value of the part taken  $2,581  FAIR MARKET VALUE OF THE REMAINDER AS PART OF THE WHOLE  Thet fair market value of the remainderas part of the whole is thet fair market value oft the property before  thet take less thei fair market value of the part taken, which is calculated as follows:  Appraisal Report -J.J.& H. Violini Company  Page 37  Packet Pg. 183    Fair market value of thep property beforet thet take Fair market value oft thep parttaken Fair market value ofthe remainder as part ofthe whole  $11,000,000 $2.581 $10,997,419  FAIR MARKET VALUE OF THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS  There are no damages associated with thet take as the remaining acreage would retain a value of $70,500 per acre. Therefore, the fair market value of the remainder before considering special benefits is  concluded as follows:  Fair market value oft ther remainder as partof the whole  $10,997,419 $0 $10,997,419  Damages  Fair market value ofthe remainder after the take before considering special benefits  FAIRI MARKET VALUE OF THE REMAINDER CONSIDERING SPECIAL BENEFITS  The project does not provide special benefits. Therefore, thei fair market value of the remainder after the  take and after considering special benefits is as follows:  Fair market value oft ther remainder after thet take before considering: special benefits Fair market value oft the remainder after the take after considering special benefits  $10,997,419 So $10,997,419  Special benefits  FAIR MARKET VALUE OF THE TEMPORARY CONSTRUCTION EASEMENT  The proposed TCE encumbers approximately 0.44t acres oft the subject property, excluding thel land areas within the proposed SSE. The easement would encumber the property for 6 months, commencing The value of the TCE is predicated on an appropriate land rent for the TCE for its duration. The market rent of the subject property was previously estimated at $2,600 per acre. Hence, the value of the TCEis  November 1, 2024 and continuing through April 30, 2025.  concluded as follows:  Appraisal Report-J.J.& H. Violini Company  Page 38  Packet Pg. 184    TCEI landa area (acres), excluding thel land area within thep proposed! SSE  0.44 $2,600 $1,136 $568  Gross annual rent per acre Annual rent for thel TCE Estimated duration of thel TCE( (months) Fair market value ofthe TCE  Additionally, the property ownerwillh have toi installaf farm roada alongt the southside ofthe TCE1 to continue farming the remainder of the property during the construction period. According to this particular property owner and at the direction of the client, the road will need to be 20 feet in width. Assuming: a road width of 201 feet for the length oft the TCE, this temporary farm road will encompass approximately The land area within the TCE andi this adjoining farm road will likely be compacted from the construction and/or road use and will likely require a period of time to restore those lands to a farming use. These lands could also provide limited utility to the property owner for the remainder of the 2025 season depending on crop planting schedules. To account fori this restoration period and potential interruption of crop planting schedules, an additional 61 months is applied to these lands to provide sufficient time to  1.15t acres.  rip, till and prepare the soils fora a farming use.  Compacted. land areas (acres) TCE land area Total compacted landa areas Gross annual rent per acre Annual rent for the compacted land areas Additional value for TCE-related compacted lands Thus, the total compensation fort the TCE is as follows:  0.44 1.15 1.59 $2,600 $4,132 b $2,066  Additional land area adjacent tot the TCE (201 feet wide)  Estimated duration tor restore compacted areas toi farming use (months)  Fair market value oft thel TCE Additonal valuet for the TCE-related compacted lands Total fair market value oft thel TCE  $568 $2,066 $2,634  Appraisal Report- -J.J.& H. Violini Company  Page 39  Packet Pg. 185    COMPENSATION SUMMARY  Fair market value oft thep parttaken as part oft thev whole  $2,581  Damages & special benefits Damages Less: Special benefits Subtotal  $0 $0  $o $2,634 $5,215  Value ofi the TCE, including compensation for the compacted lands  Total value of the take  Appraisal Report-J.J.& H. Violini Company  Page 40  Packet Pg. 186    CERTIFICATION  Icertify that, to the best ofr my knowledge and belief:  The: statements off fact contained int this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest ini the property that is the subject of this report, and no lappraised these proposed takes for the City of Gonzales in 2023 but have performed no other services, as an appraiser ori in any other capacity, regarding the property that ist thes subject of this report within the three-year period immediately preceding acceptance of this assignment. lhave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As of the date oft this report, John W. Piini, MAI has completed the continuing education program  opinions and conclusions.  personal interest with respect to the parties involved.  involved with this assignment. predetermined results.  subsequent event directly related to the intended use oft this appraisal.  Appraisal Institute. certification.  byi its duly authorized representatives. for Designated members oft the Appraisal Institute.  Wpta  John W. Piini, MAI h  Certified General Real Estate Appraiser State of California, BREAI Number AG005214  Appraisal Report- -J.J.& H. Violini Company  Page 41  Packet Pg. 187    CERTIFICATION  Icertify that, toi the best of myl knowledge andl belief:  The statements offact contained ini this report aret true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject of this report, and no l'appraised these proposed takes for the City of Gonzales in 2023 but have performed no other services, as an appraiser ori in any other capacity, regarding the property that ist thes subject oft this report within thet three-year period immediately precedinga acceptance oft this assignment. Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the: subject of this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As oft the date oft this report, Greg Piini, MAI has completed the continuing education program for  opinions and conclusions.  personal interest with respect toi the parties involved.  involved with this assignment. predetermined results.  subsequent event directly related tot thei intended use of this appraisal.  Appraisall Institute. certification.  byi its duly authorized representatives. Designated members of the Appraisal Institute.  Cerified'Generall Real Estate Appraiser State of California, BREAI Number AG044270  47  Appraisal Report-J.J.& H. Violini Company  Page 42  Packet Pg. 188    LIMITING CONDITIONS  Assumptions and Limitations of Appraisal  This appraisali ist for no purpose other than property valuation, andi the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations tot the accuracy of thei information and analyses contained int this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read  this entire section to understand these limitations. Appraisal is not al Legal Opinion discussed in the report.  No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources, generally considered reliable. Title is assumedi to ber marketable andi free and clear of alll liens and encumbrances, easements, and restrictions except thoses specifically discussed int the report. The property isa appraised assuming it to be under responsible ownership and competent management and available Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of! laws and regulations affecting the subject property was not performedi for Iti is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation. Any significant question should be addressed to local zoning or land use officials and/oranattorney. Iti is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and  fori its highest and best use.  this appraisal.  regulations affecting the subject property.  Appraisal Report- -J.J.& H. Violini Company  Page 43  Packet Pg. 189    Testimony or attendance in court or at any other hearing is not required by reason of rendering this  appraisal unless a signed contract has been executed prior to the date oft this report.  Appraisal is not a Survey  No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist. Iti is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described andi that there is no encroachment ori trespass unless noted ini the report. All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) isnot a construction, engineering, environmental, or legal expert, and any statement given on these The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for No opinion is expressed as tot thev value ofs subsurface oil, gas or mineral rights and that the property is not subject to surface entry fori the exploration or removal of such materials except as is expressly stated.  encroachments, or other survey matters.  Limited Data  matters int this report should be considered preliminary in nature.  other components  any such condition or for any expertise or engineering to discoverthem.  Appraisal Report -J.J.& H. Violini Company  Page 44  Packet Pg. 190    No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted int the report. Itis further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals intot the groundwater ori the environment unless otherwise noted int the report. Ifany problems oft this nature are knowni to the appraiser(s) which, ini the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. Ifiti is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition or adequacy ofa any particular item, we would  additional cost will be necessary to estimate the effects of such.  strongly suggest that a construction expert bel hiredi for a detailed investigation.  Appraisal Report Limitations  Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning thes subject property ort the real estate market. While not factors we believe tol be significant but unknown tot the client have been knowingly withheld, iti is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate fort their needs or whether they would like to pursue  provided by others, etc.  additional data gathering for al higher level of certainty.  Appraisal Report-J.J.& H. Violini Company  Page 45  Packet Pg. 191    Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken byy you, the client, ora any others should be based on your own judgment, and the decision process should consider many factors other than just Appraisal reports made for lenders are technical documents specifically made to lender requirements. Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of Neither all nora any part oft the contents oft this report, especially any conclusions as1 to value or thei identity oft the appraiser or1 thet firm to which appraiser is connected, shall be disseminated toi the publici for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author. The estimated market value, whichi is defined int the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin oft the present owners or occupants of the properties ini thev vicinity oft the property  the value estimate and information given in this report.  the information contained ini these reports.  economically ini the marketplace as of the date of value.  appraised.  Acceptance of Appraisal Report authorized representatives.  The use ofthis report is subject tot the requirements oft the Appraisal Institute relating to review byi its duly This appraisal is an estimate of value based on an analysis ofi information knownt toi the Appraiser(s) at1 the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect ori incomplete information. Ifnewi information ofs significance comes tol light, or ifany conditions become apparent not previously known to the appraiser(s) which would affect they value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited tot the amount of fee received byt the appraisers(s).  ber necessary.  Appraisal Report -J.J.& H. Violini Company  Page 46  Packet Pg. 192    ADDENDUM  Packet Pg. 193    Grant Deed of Easement #1 - Sanitary Sewer Easement APN 223-011-036 Violini to City of Gonzales LEGAL DESCRIPTION  Situate within Tracts 3A, 3B and 4C oft the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded December 30, 1986 in Reel 2043 at Page 1082, Official Records of said County, being more  particularly described as follows:  BEGINNING at the most northerly corner ofs said land described in Reel 2043 at Page 1082;thence  alongt the northeasterly line ofsaid land  1) South 38° 07' 31" East, 4.701 feet; thence departing said northeasterly line and crossing said land  2) South! 53°37': 15" West, 551.25 feet; thence land; thence along said northwesterly line  3) South 54°1 17' 21" West, 340.061 feet more or less to a point ont the northwesterly line of said  4) North 53°34'25" East, 891.151 feet to the POINT OF BEGINNING.  Containing an area of 3,189 square feet, more or less. This legal description was prepared by: DRAFT  Lynn A. Kovach P.L.S.5321 Dated: December17,2021  Packet Pg. 194    5  301 apim .00'09 MONI  1Z-80-12 quewasDa SS apim .00'91 bupsixg  GG 0)  > L  Packet Pg. 195    Grant Deed of APN 223-011-036 Violini to City of Gonzales LEGAL DESCRIPTION  Easement #2-Temporary Construction Easement Area  Situate within Tracts 3A, 3B and 4C of the Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded December 30, 1986 in Reel 2043 at Page 1082, Official Records of said County,  being more particularly described as follows:  BEGINNING at the most northerly corner of said land described in Reel 2043 at Page 1082; 1) South 38° 07' 31" East, 15.98 feet; thence departing said northeasterly line crossing  thence along the northeasterly line of said land  said land  2) South 53° 56' 22" West, 764.50 feet; thence 3) South 53° 54' 57" West, 999.92 feet; thence land; thence along said westerly line  4) South 53° 33' 28" West, 745.98 feet more or less to a point on the westerly line of said 5) North 40° 24' 11"West, 5.33 feet more or less to the most westerly corner of said land;  thence along the northwesterly line of said land  6) North 53° 34'25" East, 2510.26 feet to the POINT OF BEGINNING.  Containing an area of 0.5 acre, more or less. This legal description was prepared by: DRAFT  Lynn A. Kovach P.L.S.5321 Dated: April 19, 2023  Packet Pg. 196    5  301 epim .00'09 MONI  1Z-80-12E quawespa SS apim .00'9L Bupsixg  2)  - L  Packet Pg. 197    PIINI REALTY  QUALIFICATIONS OF THE APPRAISER  John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of  Monterey, San Benito, Santa Cruz and Santa Clara Counties.  Academic Background Formal Education Appraisal Education  University of California, Los Angeles, BA degree -1974  Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements. Since 1983, John Piini has completed a number of appraisal courses and seminars and is current  with Appraisal Institute's continuing education requirement.  Professional Experience 1975-1983 1983-2008 2008- present  Associate appraiser with. Joe Piini, MAI  Part owner of Piini Realty, ai family owned and operated real estate firm involved in appraising, brokerage, development and management. Upon the retirement of. Jim Piini, John Piini became the sole owner of Piini Realty, which is a full service real estate firm providing appraisal, brokerage and property management services. In 2008, John Piini obtained his California Brokers license and his real estate activity focuses primarily on appraising and marketing agricultural properties.  Appraisal Assignments financial lending.  The majority of assignments pertain to the valuation of agricultural and acreage properties fora variety of purposes including estate planning, conservation easements, trust management and  Valuations of commercial, industrial special-use, residential and  development properties are also performed.  Professional affiliation and memberships  MAI-I Member of the Appraisal Institute - Certification Number 6708 California Certified General Real Estate Appraiser- - OREA # AG005214 California Licensed Real Estate Broker- - DRE #C 00542238  Monterey County Board of Realtors  263 Lincoln Ave., Salinas, CA93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiiniRealty.com  Packet Pg. 198    QUALIFIÇATONS OF THE APPRAISER  Greg Piini, MAI has been engaged ini the real estate business since 2000. Over this period of time, Greg  has focused on both real estate appraisal and property management.  Academic Background Formal Education  Hillsdale College, Hillsdale, Michigan. Bachelor of Arts in Finance, 2000  Appraisal Education  Appraisal Institute 2001 through current. Beginning in 2001, Greg began taking appraisal classes with the Appraisal Institute and has continued taking classes and seminars over the years. Greg is current with the continuing education requirements of the BREA and the  Appraisal Institute. Professional Experience Piini Realty,Inc. 2000-2019  During the first nine years, Greg worked as an associate appraiser with John W. Piini, MAI. In 2009, Greg obtained his Certified General Real Estate Appraisal License, and in 2016, he completed the requirements to obtain the MAI designation oft the Appraisal Institute. In2 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage,  2019-Current  development and management.  Appraisal Assignments  The majority of appraisal assignments involve acreage, agricultural, commercial and industrial properties located in Monterey, Santa Cruz, San Benito and Santa Clara Counties. The appraisals are prepared for a variety of clients that range from attorneys, land trusts, government agencies, and property owners for a variety of purposes that include estate planning, conservation easements, trust management, andi financial lending.  Professional affiliation and memberships Appraisal Institute  California Certified General Real Estate Appraiser- - BREA # AG044270 California Licensed Real Estate Salesperson - BRE# 01294279  Monterey County Board of Realtors  Packet Pg. 199    D'ARRIGO BROS  Grant of Easement- = Sanitary Sewer Easement Grant ofTemporary Easement Appraisal Report -D'Arrigo Property  Packet Pg. 200    Recording requested by: CITY OF GONZALES 147 Fourth Street Gonzales, CA93926 And when recorded mail copy to: CITY OF GONZALES Public Works Department POI Box 647 Gonzales, CA 93926 Nol Recording fee- Government Code $ 27383  Space above this line for Recorder'suse  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this Easement Agreement") is made as of  October 8, 2024, by D'Arrigo Bros. Co., ofCalifornia ("Grantor"), for the benefit ofthe City of Gonzales, an incorporated City ("Grantee"), with reference to the: following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as APN No. APN B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon, a below grade sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement Purpose") onaportion ofthel Property more particularly described on Exhibit A attached hereto (the Easement Area"),  223-061-023 (the "Property"), in the County of] Monterey, State of California.  and depicted on the site plan attached hereto as Exhibit] B.  NOWTHEREFORE, in consideration ofthei foregoingr recitals, the covenants. hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee aj permanent non-exclusive easement  to the Easement Area for the Easement Purpose; and for the further purpose ofi ingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with a right of way upon, over, under, through and across those portions of the Property reasonably needed to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance ofa any building, planter boxes, earth fill or other structures  over the hereinafter described Easement Area.  Packet Pg. 201    2. Compensation. Grantor acknowledges receipto ofTwenty Thousand Five Hundred Sixty Three Dollars and Zero Cents ($20,563.00) ofcompensation from Grantee for the Easement in accordance with the value of thej property per the. Appraisal Report dated August 16, 2024.. easement for maintenance and repair purposes over the Easement Area and such portions of the Property as are reasonably necessary to access thel Easement Area fors such maintenance and repair. Grantee shall be responsible for all costs associated with the Grantee's use of the Easement. Grantee shall take all reasonable steps to notify Grantor in advance of any non-emergency  3.  Maintenance. Grantor hereby grants to Grantee a perpetual non-exclusive  maintenance.  4. No Gift or Dedication. Nothing contained in this Easement Agreement shall be deemed to be a gift or dedication of any portion of the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted in this Easement Agreement shall be strictly limited to and for the purposes herein expressed with respect toj private property solely for thel benefit of the parties and their: respective  tenants, invitees and licensees.  5. Mortgagee Protection. No breach or violation oft this Easement Agreement or of the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing a loan made in good faith and for value with respect to any portion of the Property, but all of the provisions of this Easement Agreement shall be binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to the Property or any portion thereof, by foreclosure, trustee's sale, deed  inj lieu of foreclosure, or otherwise.  6. Notice of Material Issue. Grantor shall promptly notify Grantee in writing ofa any 7. Governing Law. This Easement Agreement shall be governed by and construed  material issue or fact that may affect the Easement. in accordance with thel laws oft the State of California.  8.  Successors and Assigns: Covenants Running with the Land. This Easement  Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. of the  California Civil Code. 9.  Severability. Ifany provision ofthis Easement Agreement is prohibited or held to  be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability oft the other provisions shall not be affected or impaired thereby and (b) thej parties hereto shall endeavori in good: faith negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or unenforceable  provisions.  2  Packet Pg. 202    10. Remedies. In the event ofany breach or threatened breach ofa any provision ofthis Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to enjoin such breach or threatened breach and toi recover damages for anys such breach. Theremedies permitted or available pursuant to the provisions oft this Easement Agreement shall be cumulative  and in addition to any rights or remedies available at law or in equity.  11. Indemnification.  (a) Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities,j judgments and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, including damages caused by spills or leaks from the sewer/water lines located in the Easement. Area, provided that Grantee shall: notl bei required toi indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising from the willful or negligent acts or omissions ofa Grantor Party. affiliates, contractors, employees and agents (collectively, "Grantee Parties"). harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly ori indirectly from or related to Grantor's exercise ofany rights retained by Grantor under this Easement. Agreement or arising from the willful or negligent acts or omissions ofa Grantor Party, provided that Grantor shall not be required to indemnity or hold Granteel harmless from and against any loss, claim, demand, costs, expense, lien, fine, penalty, liability,judgment or damages arising from the willful or negligent acts or omissions ofa Grantee  (b) Grantor shall indemnify, defend and hold Grantee, and its officers,  Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each ofwhich shall be deemed an original, but all ofwhich when taken togethers shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages  executed by other parties to this Easement Agreement attached thereto.  13. Cost of] Enforcement. Ifany legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofits costs ofs suit,  including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 203    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantor: D'Arrigo Bros. Co., of California  By:  Name: John C. D'Arrigo  Title:  President/CEO  An notary public or other officer completing this certificate verifies only the identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On  SS.  2024 before me,  Notary, Public,  personally appeared  who proved to me on the basis of  satisfactory evidence to be thej person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the  upon behalf ofwhich the person(s) acted, executed the instrument.  entity  Icertify under PENALTY OF PERJURY under the laws oft the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 204    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: City ofGonzales  By:  Name: Carmen Gil Title: City Manager  Anotary public or other officer completing this certificate verifies only the identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On personally appeared  ) SS.  2024 before me,  Notary Public,  who proved toi me on1 thel basis ofs satisfactory evidence  tob be the person(s) whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s), on the instrument the person(s), or the entity upon behalf of which the  person(s) acted, executed the instrument. that the foregoing paragraph is true and correct.  Icertify under PENALTY OF PERJURY under the laws of the State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 205    EXHIBIT A  Legal Description of the Easement Area  Easements #1, #2, and #5 intentionally omitted.  A-1  Packet Pg. 206    Grant Deed of APN 223-061-0023  Easement #3 Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft the tract of land described in the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filed in Volume 18 of Surveys at Page 87, Official Records ofs said County, being particularly described Astrip of land 5f feet in width lying northwesterly of and contiguous to the westerly line of an existing 151 foot wide sanitary sewer easement described ini the deed reçorded on December 22, 1931 in Book 321, Page 21 of Official Records of said County, the easterly line ofs said 51 foot wide BEGINNING at a point on the westerly line ofs said 151 foot wide sanitary sewer easement, from which point the northerly terminus of the easterly line of said tract ofl land described in said deed recorded as Document Number 2020000064 and shown ons said mapi filed in Volume 18 of Surveys at Page 87, said easterly line labeled as N52° 04' 43"E, 2256.57' on said map, bears thet following two courses: (1) South 36°27'00" East, 15.05 feet to said easterly line ofs said land; thence along said easterly line (2) North 53°33'00" East (shown as N52° 04' 43"E on said map), 1344.73 feet to the northerly terminus of said easterly line of said land; thence from said POINT OF BEGINNING along said westerly line ofs said 15 foot wide: sanitary sewer easement thei following course: 1) South! 53° 33'0 00" West (S5 52° 08'Wi in said easement deed), 485.58 feet tot the end of said strip.  as follows:  strip being more particularly described as follows:  Containing an area of 2,428 square feet, more or less. This legal description was prepared by: dg-akps Lynn A. Kovach P.L.S. 5321 Dated: December17,2021  EIONVAL LAND A. 0 3 0 E OF CALI  A-2  Packet Pg. 207    Grant Deed of APN 223-061-0023  Easement #4 Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon del la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft the tract of land described int the deed recorded January 2, 2020 as Document Number 2020000064, said tract ofl land also being shown on ther map filed in Volume 18 of Surveys at Page 87, Official Records ofs said County, being particularly described  as follows:  A strip of land lying northwesterly of an existing 151 foot wide sanitary sewer easement described in the deed recorded on December: 22,1931 in Book 321, Page 21 of Official Records of said County,  said strip being more particularly described as follows:  BEGINNING at a point ont the westerly line ofs said 151 foot wide sanitary sewer easement, from which point the northerly terminus of the easterly line of said tract of land described in said deed recorded as Document Number 2020000064 and shown on said mapi filed in' Volume 18 of Surveys at Page 87, said easterly line labeled as N52° 04' 43"E, 2256.57' on said map, bears thei following two courses: (1) South 36°27'00" East, 15.05 feet to said easterly line of said land; thence along said easterly line (2) North 53°33'00" East (shown as N52° 04' 43"E on said map), 1830.31 feet toi the northerly terminus ofs said easterly line of said land;t thence from said POINT OF BEGINNING along said westerly line of said 15 foot wide sanitary sewer easement thet following two courses:  1) South 53° 33' 00" West, 420.25 feet; thence  2) South 12° 07' 24" West, 14.24 feet to the northerly terminus of the! 51 foot wide sanitary sewer easement described ini the deed recorded on April 23, 1985 in Reel 1831, Page 467, Official Records of said County; thence along said northerly end of said! 51 foot wide: sanitary sewer 3) North 77° 52'3 36" West, 5.00 feet; thence along the westerly line ofs said! 51 foot wide sanitary 4) South 12°07': 24" West, 25.12 feet; thence departing said! 51 foot strip crossing said land described in said deed recorded as Document Number 2020000064  easement sewer easement  5) North 77° 52'3 36" West, 3.461 feet; thence  A-3  Packet Pg. 208    Grant Deed of APN 223-061-0023  Easement #4- Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  6) North 11°37' 55" East, 40.71 feet; thence parallel to and 7.50f feet westerly oft the westerly line ofs said 15 foot wide sanitary sewer easement described in the deed recorded in Book 321, Page 7) North 53° 33'00" East, 425.07 feet; thence perpendicular to said: 151 foot wide sanitary sewer  21 easement  8) South 36°27'00" East, 7.50 feet tot the POINT OF BEGINNING.  Containing an area of f3,390 square feet, more or less. This legal description was prepared by: dgaps Lynn A. Kovach P.L.S. .5321 Dated: December  IONAL LAND A. Q 0 S OF CALI E  17,2021  A-4  Packet Pg. 209    Grant Deed of APN 223-061-023  Easement #6 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the tract of land described ini the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filedi in Volume 18 of Surveys at Page 87, Official Records of said County, being particularly described Astrip of land, 15 feet in width, lying 7.51 feet on either side of the following described centerline: COMMENCING at the northeasterly corner of Lot 4 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot is shown on1 the map recorded in' Volume 23 of Cities and Towns at Page 19, Official Records ofs said County; thence along the common line between said Tract 3B and said Lot 4, North 52° 26'3 39" East, 31.12 feet tot the POINT OF BEGINNING; thence 1) North 38° 28'11" West, 887.87 feet tot the southerly line ofa an existing 51 foot wide: sanitary sewer easement described int the deed recorded in Reel 1831 at Page 456, Official Records of  asi follows:  said County and1 the end of said strip. Containing an area of 0.31 acres, more or less. This legal description was prepared by: dgapas Lynn A. Kovach P.L.S. 5321 Dated: August 1, 2024  KQV FRLLE 0 V/ OF CALI  A-5  Packet Pg. 210    Grant Deed of APN 223-061-023  Easement #7 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B oft the Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft thet tract of land described in the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown ont the map filedi in' Volume 18 of Surveys at Page 87, Official Records of said County, being particularly described As strip of land 151 feet in width lying 7.5f feet on either side oft the described centerline: COMMENCING at the most southeasterly corner of said tract of land described in said Document Number 2020000064, said point also being the most northerly corner of Lot1 ofTract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot is shown on the mapi recorded in' Volume 23 of Cities and Towns at Page 19, Official Records of said County; thence along the northwesterly line of said Lot 1, South 52° 29'00" West, 14.631 feet tot the POINT OF BEGINNING; thence departing said  as follows:  northwesterly line  1) North 41° 51'22" West, 238.601 feet; thence  2) North 48° 47' 15" East, 10.581 feet more or less to a point ont the easterly line of said tract of land described in said Document Number 2020000064 andi the end ofs said strip.  Containing an area of 3,737 square feet, more or less.  This legal description was prepared by: dg-aps Lynn A. Kovach P.L.S.5321 Dated: August 5,2024  IONVAL LAND A KOV 0 OF CAL  A-6  Packet Pg. 211    Grant Deed of APN 223-061-023  Easement #8 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B oft thel Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft thet tract of land described int the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filedi in' Volume 36 of Surveys at Page 69, Official Records of said County, being particularly described As strip of land 151 feet in width lying 7.51 feet on either side of the described centerline: COMMENCING at the most southwesterly corner ofs said land shown on said mapi filed in' Volume 36 of Surveys at Page 69; thence along thes southerly line ofs said land South 87 04'4 47" East, 99.661 feet; thence! South 20" 14' 51" East, 11.301 feet toi the POINT OF BEGINNING; thence departing said 1) South 87" 04'31" East, 169.21 feet to a point on the southerly line ofs said land shown on said  as follows:  southerly line  map and the end ofs saids strip.  Containing an area of 2,538 square feet, more orl less. This legal description was prepared by:  dgaps Lynn A. Kovach P.L.S.5321 Dated: August t5,2024  @  A-7  Packet Pg. 212    EXHIBITI B Site Plan of Easement Area  Easements #1, #2, and #5 intentionally omitted.  B-1  Packet Pg. 213    2-8  6  301 epim .00'09 MaN!  1Z-80-125 quewespa SS bupsixg  E X 0 A  Packet Pg. 214    8-8  5  4  301 apim ,00'09 MeNI  12-80-12 quawespa SS bupsixg  - Y  0  Packet Pg. 215    4-8  5  Packet Pg. 216    9-8  53  Packet Pg. 217    9-8  88  Packet Pg. 218    GRANT OFT TEMPORARY EASEMENT  THIS GRANT OF TEMPORARY EASEMENT (this Temporary  Easement"): is made as ofOctober 8, 2024, by D' Arrigo Bros. Co., ofCalifornia ("Grantor"), for the benefit oft the City of Gonzales, an incorporated City ("Grantee"), withi reference to the  following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as. APNNo. APN B. Grantee has requested a temporary easement to perform the activity, more particularly described in Exhibit A (the Improvements"), attached hereto and incorporated  223-061-023 (the Property"), in the County ofMonterey, State of California.  herein by reference. C.  Grantee has requested temporary access to two (2) portions of the Property  more particularly described on Exhibit B attached hereto (collectively, the Temporary Easement Area"), and depicted on the site plan attached hereto as Exhibit C.  NOW, THEREFORE, in consideration of the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, thei receipt and sufficiency  ofwhich are hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a temporary easement to the  Temporary Easement Area for the performance of the Improvements; and for the further purpose ofingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Improvements, together with a right of way upon, over, under, through and across those portions of the Property reasonably needed to access the  Temporary Easement Area (the Easement").  2. Term. The term of this Temporary Easement shall commence when performance of the Improvements begins, no earlier than November 1. 2024, and shall automatically terminate upon completion of the Improvements or no later than May 1.2025. Grantee shall provide Grantor at least twenty-four (24) hours' notice prior to performance of any Improvements. Grantor shall grant no rights inconsistent with the reasonable exercise by  Grantee ofits rights under this Temporary Easement.  3. Cost. TheGrantee: shall beresponsible forall costs and expenses associated with performance of the Improvements, except for those cost or expenses resulting from the negligence or willful misconduct oftheGrantor. Seel Exhibit A: forother exceptions, ifany. Temporary Easement Area in accordance with the Appraisal Report, updated. August 16, 2024. Value of the Temporary Easement Area was predicated on an appropriate land rent for the Temporary Easement Area and the duration oft time it would be unavailable for Grantor's use. Total compensation for the Temporary Easement Area is' Twenty One Thousand Six Hundred Twenty Five Dollars and Zero Cents ($21,625.00). Thej parties acknowledge any construction delays or any other cause which results in Grantee failing to vacate the Temporary Easement Areal by May 1,2025 will: require additional compensation to Grantor for the loss of use.  4.  Compensation. The Grantee shall compensate the Grantor for the use of the  Packet Pg. 219    5.  Performance of the Improvements. Time is ofthe essence with respect to the  performance of the Improvements, and to the extent reasonably feasible, the Grantee shall diligently pursue completion of the Improvements. Grantee shall take all reasonable steps to avoid disruption of Grantor's farming activities on the rest oft the Property not included ini the Temporary Easement Area. Specifically, Grantee shall have a water truck on site to regularly apply water to prevent dust drift on Grantor's growing crops. Grantee shall avoid using Grantor's farm roads for regular access and travel. Grantee shall coordinate its movement of equipment with Grantor SO as to not block Grantor's: access fori its own farming and harvesting equipment and personnel. Grantee shall listen to any concerns expressed by Grantor's food safety professionals and takei reasonable steps to mitigate said concerns. Grantee shall provide Grantor with the name and contact information of the construction site project manager to facilitate communications: on any concerns. When the Grantee's performance of the Improvements has been completed, Grantee shall provide Grantor with an "As Built" cross section blueprint ofthe entire length of the pipeline indicating location and depth.  6.  Safety. Grantee shall erect and maintain on the Property, as necessary,  reasonable safeguards for safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and  notifying owners and users of adjacent sites and utilities.  7.  Revocable Licenses and Termination. This Temporary Easement shall be  revocable by the Grantor only if the Grantee fails to comply with any provision herein. Revocation may not occur until Grantor has provided the Grantee with written notice of the alleged breach and at least ten (10) days to cure. During said 10-day period to cure, the Parties shall meet and confer regarding the alleged breach and potential cure. Notice to the Grantee of any alleged breach shall be sent to Patrick Dobbins, Public Works Director, 147-4th Street, Gonzales, CA. If Grantor terminates this Temporary Easement at any time after performance ofthel Improvements has commenced, but prior to the completion ofs such Improvements, ori if Grantor otherwise prohibits or impedes Grantee right to enter the Property hereunder, the Grantee shall not be liable for any actions, claims, suits, penalties, obligations, liabilities, or damages to the Property, environmental claims or injuries to persons, which may be caused by Grantee's performance of the Improvements pursuant to this Temporary Easement or arising out of or in connection with performance of the Improvements, whether such activities or pertormance thereofi is by Grantee or anyone directly ori indirectly employed or under contract with Grantee, and whether such damage or claim shall accrue or be discovered before or after  the termination ofthis' Temporary Easement.  8.  Restoration of the Property. As part of the Improvements to the Property,  Grantee: shall, atitsown costand expense, restoret thel Property toasubstantially similarcondition in which it was prior to Grantee's performance of the Improvements. Specifically, Grantee shall level the Temporary Easement Area and make the area level to the adjacent areas oft the Property. The Grantee shall also remove all construction debris and trash and notify Grantor in advance of the anticipated date of its completion of the restoration and termination of the Temporary Construction Easement and the actual date oftermination. IfGrantee has damaged any ofGrantor's personal property, such as itsi irrigation infrastructure, Grantee shall reimburse Grantor for its costs in restoring it to its condition prior to said damage. In the event that Grantor terminates this' Temporary Easement foranyr reason other than ac Grantee default and at any time after performance of the improvements has commenced, but prior to the completion ofsuch Improvements, the Grantee shall not be obligated toi restore thel Property as described  herein.  Packet Pg. 220    9.  Continuing Liability. EAMATerey Easement,  no termination of this Temporary Easement shall release the parties from any liability or obligation hereunder resulting from any acts. omissions or events happening prior to the  termination ofthis Temporary Easement and restoration oft the Property.  10. Counterparts. This Temporary Easement may be executed in one or more counterparts, eachofwhich shall bedeemed an original butallofwhicht together rshall constitute IN WITNESS WHEREOF, the Partiesl hereto have executed this Temporary Easement on  one and the sameinstrument. the date first written above. CITY OF GONZALES Carmen Gill, City Manager  D'ARRIGOI BROS. CO., OF CALIFORNIA John C. D'Arrigo, President/CEO  By:  By:  Packet Pg. 221    EXHIBIT. A Description of Work  The scope of work is as follows:  Installation, testing and commissioning ofnew 12-inch/24-inch PVC below grade gravity sewer pipelines, manholes, and appurtenances to support the City's upcoming Aminimum depth of5 feet willl bei maintained to the top ofl buried manholes.  Industrial Wastewater Treatment Program.  Not included: 1  Not Applicable  A-1  Packet Pg. 222    EXHIBITB  Legal Description of the Easement Areas  B-1  Packet Pg. 223    Grant Deed of APN 223-061-023  Easement #9-Temporary Construction Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft thet tract of land described ini the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filed in Volume 36 of Surveys at Page 69, Official Records ofs said County, being particularly described BEGINNING at the most southwesterly corner of said land shown on said map filed in Volume 360 of  as follows:  Surveys at Page 69; thence along the westerly line of said land  1) N8° 25' 31"E, 14.68 feet; thence departing said westerly line  2) S87° 04'31"E, 292.01 feet; thence 3) N69° 40' 37"E, 373.94 feet; thence 4) N11°37'5 55"E, 854.75 feet; thence 5) N53°5 50'4 42"E, 1,009.58 feet; thence 6) N53°3 32'2 26"E, 999.93 feet; thence 7) N53°3 33'2 28"E, 1,000.09 feet; thence 8) N53°54'57"E,: 1,000.08 feet; thence 9) N53° 56'2 22"E, 906.91 feet; thence 10) N53° 28' 33"E, 999.94 feet; thence 11) N53°39'1 19"E, 842.301 feet; thence 12) N52° 54'! 57"E, 170.051 feet; thence  13) S38°2 28' 11"E, 921.46 feet to a point on the northeasterly line ofl Lot 4 as said Lot is shown on' Volume 23 of Cities and Towns at Page 19; thence along said northeasterly line 14) $52°27' 02"W, 50.01 feet; thence departing said northeasterly line of said Lot4  15) N38° 28' 11"W, 871.85 feet; thence 16) S52°54'5 57"W, 121.561 feet; thence  17) S53°3 39' 19"W, 570.37 feet to a point on the southeasterly line of said land described in said  Document Number 2020000064; thence along saids southeasterly line  18) N38° 35' 43"W, 17.44 feet; thence 19) S53*35'51'W, 3,937.70 feet; thence 20) N40° 24'14"W, 10.001 feet; thence 21) S53°3 34' 26'W,2,256.28 feet; thence  B-2  Packet Pg. 224    Grant Deed of APN 223-061-023  Easement #9 - Temporary Construction Easement D'Arrigo Bros. Co. of California to City of Gonzales  22) S12° 08' 50"W, 835.04 feet; thence  23) S69°40'3 37"W, 473.08 feet; thence departing said southeasterly line  24) N87° 04' 31"W, 100.31feet to a point on the southerly line ofs said land described in said  Document Number 2020000064; thence 25) N20° 14'51"W, 38.501 feet; thence  26) N87° 04'4 47"W, 99.661 feet, toi thel POINT OF BEGINNING  Containing an area of7.4 acres, more or less. This legal description was prepared by: Cyakps Lynn A. Kovach P.L.S.5321 Dated: August5,2024  LAND a   0 OF CALV  B-3  Packet Pg. 225    Grant Deed of APN: 223-061-023  Easement #10- - Temporary Construction Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B oft the Rancho Rincon de la Punta dell Monte, City of Gonzales, Monterey County, State of California, being a portion of thei tract ofl land described ini the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filed in' Volume 18 of Surveys at Page 87, Official Records of said County, being particularly described as follows: BEGINNING at the most southeasterly corner ofs said tract ofl land described in said Document Number 2020000064, said point also being the most northerly corner ofl Lot1 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said loti is shown on the mapi recordedi in' Volume 23 of Cities and Towns at Page 19, Official Records ofs said County; thence along the northwesterly line ofs said 1) South 52° 27' 02"West, 39.701 feet; thence departing said northwesterly line crossing said tract  Lot1  of land described in Document Number 2020000064 2) North 41°! 51'22"West, 262.00 feet; thence 3) North 48° 47' 15"East, 35.11 feet; thence  4) South 42° 49' 30"East, 264.62 feet, toi the POINT OF BEGINNING  Containing an area of 9,829. square feet, more or less. This legal description was prepared by: dyakp Lynn A. Kovach P.L.S.5321 Dated: August5,2024  SICNAL LAND A.  3   OF CALI  B-4  Packet Pg. 226    EXHIBITC Site Plan of Easement Area  C-1  Packet Pg. 227    2-0  000 00  @  6  &  Packet Pg. 228    8-0  e8 5  Packet Pg. 229    REVISED APPRAISAL OF:  CITY OF COAE/PARAGOSHLROD RANCH PARTALTAKE-GONZALES RIVER ROAD GONZALES, MONTEREY COUNTY APNS 0001.01.2081054.03  REQUESTED By:  Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  APPRAISALASOF:  May 8, 2024  APPRAISED By:  John' W. Piini, MAI Greg Piini, MAI 263 Lincoln Avenue Salinas, CA 93901  Packet Pg. 230    PIINI REALTY  August 16, 2024 Patrick Dobbins Public' Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  Re: Appraisal Report - D'Arrigo Brother's Herold Ranch Gonzales, Monterey County, California  Dear Mr. Dobbins:  Upony your authorization, we conducted the investigations and analyses necessary toi form an opinion as to the fair market value of five permanent Sanitary Sewer Easement (SSE) and two Temporary Construction Easements (TCE) on a portion of the Herold Ranch, west of Gonzales, Monterey County, California. The Herold Ranch is owned by D'Arrigo Brothers and is identified as AsesorsParce/Numbers APNS/020-011-001, 223-061-005, and -023. The ranch has a gross area of! 560.4t acres. The ranch includes 538.8t acres (APN 223-061-023) that are located within the County of Monterey, zoned Farmlands (F/40) and used for irrigated row crops; and 21.6t acres (APNS 020-011-001 and 223- The proposed takes are entirely located within the agricultural parcel and do not have any effect on the industrial-zoned parcels. Therefore, for the purpose of this appraisal, the analysis that follows omits APNS 020-011-001 and 223-061-005 and is confined to the agricultural parcel identified as Monterey County These easements are being purchased by the City for an agricultural-industrial wastewater conveyance pipeline that is part of Gonzales' Industrial Wastewater Recycling Facility (IWRF) project. The SSEs consist of five easements that vary in width from! 5.0 to 15.01 feet and encumber at total area of 25,411t square feet. The SSEs run adjacent to several existing sewer easements. The TCES vary in width from about 151 to! 50 feet and run through the subject property, following the proposed and existing SSEs. The TCES encumber approximately 7.67t acres of land for a period of six months, commencing on Tofarm they property outside the TCES, a newi farm road willl likelyl ber necessary adjacent toi the TCES during the six-month construction period. Afterward, the land area within the TCE and this farm road outside the TCES will be too compacted to be farmed. To restore this land to ai farming use, additional time will  061-005) that are located within the city limits of Gonzales and zoned industrial.  APN223-061-023.  November: 1, 2024.  263 Lincoln Ave., Salinas, CAS 93901 I TEL 831-422-5327 I FAX 831-422-8280 I PuniRealty.com  Packet Pg. 231    Mr. Patrick Dobbins  August. 16, 2024 Pageii ii  Re: Appraisal Report-D'Arrigo Brothers  be required to rip, till and prepare these soils. An additional six months are added to the TCES and the Based oni thei inspection oft the property and thei investigations and analyses undertaken, we have formed the opinion that as of May 8, 2024, and subject tot the assumptions andi limiting conditions seti forth int this  land adjacent tot the TCES to account fort this loss.  report, the value conclusions are as follows: Fair market value oft the parttaken as part of the whole  $20,563  Damages & special benefits Damages Less: Special benefits Subtotal Value of thel TCE Total value of the take  $0 $0  $o $21,625 $42,188  The appraisal report thati follows consists of 50 pages and sets forthi thei identification oft the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results of the investigations and analyses, and the reasoning leading toi the value conclusions.  Respertulysubmitted, AR  MAI Real Estate  Greg MAT As  Certified General State    Appraiser  Certifiéd General Real Estate Appraiser State ofcalifornia, BREA No. AG044270  of California, BREA No. AG005214  Packet Pg. 232    TABLE OF CONTENTS  Transmittalletter. Table of Contents. Introduction.. Identification Hypothetical Condition. Extraordinary Assumption. Purpose of the Appraisal. Title.. Property History Property Rights Appraised. Client of the Appraisal. Intended Users. Intended Use of the Appraisal. Effective Date of the Appraisal. Date of Report. Report Format. Exposure Time. Land Acreage Definitions. Scope of Work. Regional Description. Regional Map. Location Map. Monterey County.. Gonzales Property Description Aerial Photograph. Assessor's Parcel Map. Subject Photographs.  iii  11 11 11 12 15 16 16 16 17 Page ii  Appraisal Report-4 D'Arrigo Brothers  Packet Pg. 233    Location. Land Area. Access Irrigation Water. Building Improvements Hazards. Assessed Valuation & Taxes. Property Rights. Land Use Policies Highest & Best Use. Valuation Comments  18 18 19 19 19 20 20 21 22 23 23 24 40 42 42 42 43 44  Fair Market Value oft the property before the take. Fair Market Value of the Part Taken... Fair Market Value of the Remainder as Part of the Whole.. Fair Market Value oft the Remainder Before Considering Special Benefits. Fair Market Value of the Remainder Considering Special Benefits.. Fair Market Value of the Temporary Construction Easement.  compensationsummory. Certifications. Limiting Conditions Addendum  Legal Description and Maps of the Permanent and Temporary Easements  Qualificatons ofi the Appraisers  Appraisal Report- -L D'Arrigo Brothers  Page iv  Packet Pg. 234    INTRODUCTION  IDENTIFICATION  This appraisal involves a partial-take valuation of an agricultural farm property referred to as the Herold Ranch. The Herold Ranch is owned by! D'Arrigo Brothers andi is locatedi tot the west of Gonzales, Monterey County, California. The entire ranch is 560.4t acres and consists of Monterey County Assessor Parcel For the purpose of this appraisal, APNS 020-011-001 and 223-061-005 and omitted from this analysis as these two parcels are located within the Cityo ofG Gonzales, are zoned Industrial, and are not affected by the Therefore, the portion of the Herold Ranch being appraised is identified as APN 223-061-021, which has The partial-take consists ofi)f five Sanitary Sewer Easements (SSEs)that mumeratudhapoinie) 25,411t square feet, and ii) two Temporary Construction Easement (TCE) that encumber approximately 7.67+ acres. The public agency involved in this takingi is the City of Gonzales as part ofa a project referred  Numbers 020-011-001, 223-061-005 and -023.  proposed easements.  agross land area of 538.8tacres.  to as the Gonzales Industrial Wastewater Recycling Facility (IWRF) project.  HyPOTHETICAL CONDITION from this analysis.  This appraisal is predicated on the hypothetical condition that the portion of the Herold Ranch being appraisedi is as separate legal lot that can bes soldseparatelyi fromi thei industrial-zone lands that are omitted  Hypothetical Condition Defined  A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of  analysis. EXTRAORDINARY, ASSUMPTION Irrigation Improvements  Irrigation waterforthel D'Arrigo Ranchi is providedi from merpoumdgoundaterwel, and underground irrigation pipelines. This appraisal is predicated upon the extraordinary assumption that the proposed easements and/or the proposed construction project do not disturb any of the irrigation systems and if 1 Uniform Standards of Professional. Appraisal Practice (USPAP) - 2018-2019 Edition. (The Appraisal Foundation,  2018). p.4.  Appraisal Report- - D'Arrigo Brothers  Page5 5  Packet Pg. 235    the construction of the proposed conveyance line affects any of the irrigation system, the construction project would repair and replace the affected irrigation improvements as a cost-to-cure item.  Depth of Proposed Conveyance Line  This appraisal is predicated ont the extraordinary: assumption that the proposed conveyance line willl be at ac depth that is sufficient to allow continued deep tilling/ripping of the soil above, and that its location  and/or depth will not interfere with thet farming operation on thel Herold Ranch.  Environmental Hazards  An environmental assessment report was not provided and we are not qualified to make such a report and/or environmental assessment. Without the benefit of an environmental assessment or hazardous material assessment report, this appraisal is predicated on the extraordinary assumption that there are no environmental conditions that adversely affect the value of the property. Therefore, this is an  "unimpaired valuation.* " Extraordinary, Assumption Defined  An assignment-speclic assumption as of the effective date regarding uncertain information used in an analysis which, iffound to bej false, could alter the appraiser's opinions or conclusions. 2  PURPOSE OFTHE APPRAISAL  The purpose ofthe appraisal ist to estimate the "fair market value" oft the real property in accordance with California eminent domain civil procedure codes. As per California law the appraisal will address the  following:  1. thei fair market value of the property before the take; 2. thei fair market value of the part taken; 3. thet fair market value of the remainder as part of the whole; 4. thei fair market value of the remainder before considering special benefits; ;and 5. thet fair market value of the remainder considering special benefits.  Fair Market Value Defined  For the purpose oft this appraisal, fair market value is defined as follows:  Thej fair market value oft the property takeni is the highest price on the date ofv valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for sO doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular  2lbid.p.4.  Appraisal Report-D'Arrigo Brothers  Page 6  Packet Pg. 236    necessity fors sO doing, each dealing with the other withfullk knowledge of allt the uses and purposes  forv which the property is reasonably adaptable and available.  TITLE  According to the Monterey County Assessor's Office, title is vested as follows:  D'Arrigo Bros Co.  PROPERTYHISTORY  The Herold Ranch was purchased by the current owners on. January 2, 2020 (Document No. 2020000064) for $41,500,000. The sale price was allocated by the parties involved at $5,000,000 for the industrially zoned land and farm labor camp, and $36,500,000 for the agricultural farmland. This is the only sale of this property within the past fivey years. The propertyi is not currently offered on the open market and we  are not aware of any purchase options and/or agreements affecting the property.  PROPERTY RIGHTS APPRAISED Fee Simple Estate Defined  The property rights appraised is thet fee simple estate.  Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police  power, and escheat. 4  CLIENT OF THE APPRAISAL INTENDED USERS  The client of this appraisal is the City of Gonzales.  The intended users are the client and thet fee owner of the property. The appraisers are not responsible for any unauthorized use of this report and are not responsible to any third-party users.  INTENDED USE OF1 THE APPRAISAL  The intended use of this appraisal is for the client's use pertaining to the purchase of easements on the  subject property as part of the IWRF project.  California Code of Civil Procedure - CCP $1263.320 (Amended by Stats. 1992, Ch. 7, Sec. 2. Effective January 1,  1993).  4Dictionary of Real Estate Appraisal- - 6th Edition. Appraisal Institute, 2015, p. 90.  Appraisal Report- - D'Arrigo Brothers  Page 7  Packet Pg. 237    EFFECTIVE DATE OF1 THE APPRAISAL  This appraisal assignment represents a current appraisal in which the effective date of the appraisal and  the valuation conclusion apply as of May 8, 2024.  DATE OF REPORT REPORT FORMAT  This appraisal assignment was conducted in May and. June of 2024.  The report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated  above. EXPOSURETIME  Thet term 'exposure time" is defined as  The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation ofas sale at market value on the effective date  oft the appraisal."  Fort the past several years, a strong effective demand exists fori irrigated farmland and ranch lands located within the Salinas Valley. Turnover is limited and much of the farmland that sells is sold without ever being offered on the open market. Those farms that are offered on the open market are generally under contract within 30 days and have a 90-day due diligence period. Farm properties that are on the market for more than six months are typically overpriced or have certain physical characteristics that limit their The Herold Ranch isa prime agriculturalfarm that would command strong demand if offered oni the open market. Assuming the ranch was offered near market value, an exposure time of 3 to 6 months is  appeal andi increase their risk of ownership.  considered reasonable applied int this analysis.  LAND ACREAGE DEFINITIONS  Several acreage classifications are used within this appraisal report and are defined as follows:  Slbid.p.83.  Appraisal Report-D'Arrigo Brothers  Page 8  Packet Pg. 238    Gross Acreage  The gross area is the total land area of the property as legally described, or as indicated by the parcel maps. The gross acreage. for this assignment is derived from the Monterey County Assessor Parcel Maps,  which are included in this report. Non-Usable. Farm Acreage Usable Farm Acreage  The non-usable farm acreage is the landi that does not provide a utility to the property.  The usable farming acreage is thet total acreage that provides a utilityt tot the property and includes the net  crop acreage, internal roads and yard areas that service thet farmable acreage.  Net Crop Acreage  The net crop acreage is the net planted acreage, excluding the service acreage of roads, reservoirs, yard areas and any non-usable areas. Also referred to as the farmable acreage or green-to-green area, the net crop acreage is the area growers utilize for measuring crop production and growing costs.  Leased Acreage SCOPE OF WORK  The leased acreage is the acreage stated in the lease that is agreed upon between the lessorand! lessee.  We appraised the subject easements for1 the City of Gonzales in May of 2024. This report is an update to thel May 2024 report to only reflectac changei int thet takea areas. Forthe May 2024 assignment, the property was inspected on May 8, 2024. Thei inspection was from internal ranch roads with the scope of observing the layout and general characteristics of the property. In addition to our inspection, we reviewed parcel Piini Realty also brokered the 2020 sale of the Herold Ranch. As part of this assignment, the brokerage The gross land area oft the property is obtained from the Assessor's Parcel Map. The land areas within the proposed takes are obtained from the draft legal descriptions andi take exhibits prepared by Polaris Land The valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records, Multiple Listing Service (MLS) data, on-linesu subscriptionservices: suchascoSarancloopaet, real  maps, flood maps, aerial photographs and zoning maps of the property.  file was reviewed, and pertinent data has been incorporated into this assignment.  Surveying, copies of which are included in the addendum of this report.  estate appraisers, and brokers. Appraisal Report- - D'Arrigo Brothers  Page 9  Packet Pg. 239    The results oft the investigations and the analyses conducted are presented in this appraisal report, and  were prepared by. John Piini, MAI, and Greg Piini, MAI.  Appraisal Report - D'Arrigo Brothers  Page 10  Packet Pg. 240    REGIONAL DESCRIPTION  REGIONAL MAP  Marina  Chualer  GoopleEarth  LOCATION MAP  Gonzales Cityl Limits Boundary Subject Property Proposed Conveyance Line Future Industrial Wastewater Rercycling Facility  Gonzales  Appraisal Report- -L D'Arrigo Brothers  Page 11  Packet Pg. 241    MONTEREY COUNTY  Monterey County is oriented in a north to south direction parallel to the Pacific Ocean. Iti is bounded on the north by Santa Cruz County, on1 the south by San Luis Obispo County, on the east by San Benito, Kings, The largest oft the central coast counties, Monterey County has approximately 100 miles of coastline along the Pacific Ocean and averages 30r miles in width. The county contains 3,324t square miles or 2,127,360t About 439,000 people currently residei inl Monterey Countyasc ofthe 2020Census, whichisa5 5.79increase from the 2010 Census estimate of about 415,000. The majority of the county's population is located on the Monterey Peninsula and in the greater Salinas area. Over the past several decades, Salinas andi the smaller Salinas Valley towns experienced the majority of the county's growth, as the price of land and housing is relatively affordable compared toi the Monterey Peninsula and the neighboring Santa Claraand Santa Cruz Counties. During this same period, the population on the Monterey Peninsula remained relatively stable due to al limited: supply of land that is zoned and suitable for development. The physical and economic characteristics of the county are divided primarily between the Monterey Peninsula and Salinas Valley. The Monterey Peninsula communities of Pebble Beach, Carmel, Pacific Grovea and Monterey: are tourist destinations for the northwesterly portion. Tothe: south oft the Monterey Peninsula is the world-renowned Big Sur Coast. Oni the eastern side oft the county lies the Salinas Valley,  and Fresno Counties and on1 the west is the Pacific Ocean.  acres.  one of the chiefvegetabieproduchg: regions in the United States.  Salinas Valley  The Salinas Valley is at fertile agricultural region bounded to the east by the Gabilan Mountain Range and tot thev west by the Santa Lucia Mountain Range. The valley begins at San Ardo and widens and stretches This valleyi is one of the premier fresh vegetable growing regions int the country and a majority of the salad greens consumed ini the United States are grown here. Strawberries, head lettuce, leaf lettuce, broccoli, celery, artichokes, and a variety of other vegetable crops provide Monterey County with approximately $4.6 billion in gross sales. Due to the intensity and the variety of crops grown, the Salinas Valley is Within the 100-mile stretch oft the Salinas' Valley are individual farming districts, distinguished not only by location, but by farming characteristics associated with soil, climate and/or water. East-to-west, soil quality provides the distinction, as the soils on the valley floorare, fori the most part, fertile clay and loamy soils that are wells suited for growing a variety ofi fresh vegetable crops. Along thet foothills of the Gabilan  approximately 100 miles toi the Monterey Bay, near Castroville.  nicknamed "America's Salad Bowl."  Appraisal Report - D'Arrigo Brothers  Page 12  Packet Pg. 242    Range (east side of the valley) and the Sierra de Salinas Range (west side) the soils are generally characterized by decomposed granite (DG) soils thati formed in alluvium from granitic and schistose rocks on alluvial fans and terraces. These soils are typically well-drained and suitable for growing a variety of crops; however, they generally require a higher degree off farm management as compared to the soils on North-to-south, climate plays a significant role as the north end oft the valley has a cool coastal climate, whereas the south end of the valley is warmer and windier during the growing season. Due primarily to climate, agricultural rents are higher at the north end of the Salinas Valley as compared to the farmland int the central and southern portion of the valley. In recent years though, this gap tightened due in part to an expansion of seed varieties, enhancement ini irrigation practices and the growth ini thet food service segment of the produce industry which has increased the demand for leafy green vegetables such as The economy of the Salinas Valley is centered around the agricultural industry, with irrigated row crops in the Salinas Valley, vineyards in the foothills of the Santa Lucia and Gabilan Ranges, and cattle grazing throughout the more mountainous areas of these Coastal Ranges. Agricultural crop values are significantly highertodayt than what existeda decade ago; however, the past few agriculture seasons were unusually challenging to the local industry. The COVID-19 pandemic, a relatively new increase in lettuce losses from Impatiens Necrotic Spot' Virus (INSV) and Pythium wilt, continued labor shortages, increasing food safety regulations, the uncertainty of future water regulations under California's Sustainable Groundwater Management Act (SGMA), and risingi inflation and interest rates have made for challenging  the valley floor.  spinach and leaf lettuces that have shorter growing periods.  times for the produce industry.  Appraisal Report - D'Arrigo Brothers  Page 13  Packet Pg. 243    Salinas Valley Water  Water for the Salinas Valley is derived mainly through groundwater wells penetrating 100 to 1,700 feet into the Salinas Valley Water Basin. The Salinas Valley Basin has a single common aquifer that is divided into six hydrologically interconnected subbasins known ast the 180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Forebay Aquifer Subbasin, Langley Area Subbasin, and Monterey Subbasin. These basins are depicted int the mapi to the right. These basins are recharged by the Salinas River and its tributaries, winter rain runoff from the bordering Gabilan and Sierra de Salinas Mountain ranges, and dam water discharges from the Nacimiento Reservoir (constructed 1955) and the San Antonio  EXPLANATION  Reservoir (constructed 1963). These natural and man-made sources feed the basins; however, iti is not enough. The Salinas Valley, especially at the north end, extracts more water than is replenished, resulting Over drafting of groundwater is not unique tot the Salinas Valley! buti is occurring throughout California. As aresult, California passed the Sustainable Groundwater Management Act (SGMA) in 2014, which requires California governments and water agencies to develop a Comprehensive Groundwater Sustainability Plan (GSP), which will establish the means and methods of achieving water sustainability, andi then implement the GSP and achieve basin sustainability within 20 years after approval of the GSP. In the Salinas Valley, the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) is aj joint powers authority that was Each subbasin's GSP was approved in 2022. The approved GSP's indicate that the northerly four basins (180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Langley Area Subbasin, and the Monterey Subbasin) arei in an overdraft condition, whilet the two southern basins (Forebay Aquifer and Upper Valley  ins seawater intrusion and a shrinking water supply amongst the older shallow wells.  established toi fulfill the requirements of SGMA.  Aquifer) arei ina al balanced. state.  The Herold Ranch is within the 180/400 Foot Aquifer.  Appraisal Report-L D'Arrigo Brothers  Page 14  Packet Pg. 244    GONZALES  Gonzales is centrally located within the Salinas Valley andi is approximately 15 miles south of the City of Salinas. Thet town has a population of 8,439 peoples. Overt thep past several decades, thet town has grown as its proximityt to Salinas andi itsl lower relative price of housing has brought an influx ofc commuter-based  residents; however, the town remains an agricultural-basede community.  6U.S. Census Bureau. 2022 Population Estimate Program (PEP).  Appraisal Report- D'Arrigo Brothers  Page 15  Packet Pg. 245    PROPERTY DESCRIPTION  AERIAL PHOTOGRAPH  APN223-061-023  Googlefarth ASSESSOR'SPARCEL MAP  TAX CODF ARFA 76-01  COUNTY OF MONTEREY ASSESSOR's MAP BOOK 225, PAGE 06 Herold Ranch Portion Appraised Herold Ranch Portion Omitted  A  3  GONZALES  RINCON PUENTE DEL MONTE RANCHO  PSHN WERARF  Appraisal Report- - D'Arrigo. Brothers  Page 16  Packet Pg. 246    SUBJECT PHOTOGRAPHS  Easterly view off farmland near windmills and general location of proposed TCE  Easterly view of the SE boundary of Herold Ranch andl location oft the SSES  and TCE  Northerly view of bank separating lower bench (left) and upper bench (right) with location of proposed SSE and TCE  Appraisal Report- - D'Arrigo Brothers  Page 17  Packet Pg. 247    LOCATION  The Herold Ranch is locatedi toi the west of Gonzales, approximately 12% miles to thes south of Salinas and This locationi is within ani intensive farming district oft the Salinas Valley thati is characterized by fertile soils, an ample supply of water and a temperate coastal climate. Most of the farmland in this area is double The adjoining land usesi include industrial within the city limits of Gonzales tot the east, irrigated row crops Most oft the Herold Ranch is located within the county while 22.8t acres are located within the city limits of Gonzales. As mentioned previously, this appraisal omits the 22.8t acres located within the city limits  8% miles toi the north of Soledad.  cropped annually for a variety of fresh vegetable crops.  tot the north and south, and the sewage treatment plant to the west.  boundary. LAND AREA  The portion ofthe Herold Ranchi that is being appraised hasa agross land aread of538.8tacres. Thisacreage extends from the Southern Pacific Railroad (SPRR) and Gonzales city limits boundary to the Gonzales The ranchi is situated ont twol benches with 408.0t acres ona an upper bench, 130.0t acres ona al lower bench, and 0.8t acres located on the bank between the two benches that is excluded from the usable farm  sewer treatment plant that lies tot the east of the Salinas River.  acreage. The gross and usable açres are: summarized as follows:  Land Area: Summary Description Usableacres Upper bench acreage Lower bench acreage Usablef farm acres Less: Acreage within bank Gross acres Soils & Topography  Acres 408.0 130.0 538.0 0.8 538.8  The soils consist of Cropley silty clay (CnA) on the upper bench and Pico fine sandy loam (Pf) and Mocho silt loam (MnA) on the lower bench. These are nearly level soils with Oto 2% slopes.  Appraisal Report- - D'Arrigo Brothers  Page 18  Packet Pg. 248    Soil Summary Soils Symbol Soil Name CnA Pf MnA Totals  Approx Approx % Acres ofRanch 408.0 100.0 30.0 538.0  Slope Oto2% Oto2% Oto2%  Class 2 1 1  Cropley silty clay Picoi fines sandy loam Mocho silt! loam  75.8% 18.6% 5.6% 100.0%  The Cropley silty clay soili is a well-drained soil that has a silty clay texture. The soil is common soil found throughout the north end oft the Salinas' Valleya andi iss suitable for most oft the row crops grown in1 the area. While the Monterey County Soil Survey identifies the soil as Class 2, the local farming community regards The Pico fine sandy loam and Mocho silt loam are sandier soils that are rated Class 1. These are well  itas a prime fertile soil.  drained soils that are suitable for early Spring crops.  ACCESS  The upper bench has four rights-of-way from Gonzales River Road and one right-of-way from Alta Street. Thel lower bench is accessed by Short Road, a 20-foot right-of-wayt that extends from Gonzales River Road  tot the Gonzales sewage treatment facility.  IRRIGATION WATER pressure lines. BUILDING IMPROVEMENTS camp is also omitted.  Fivei irrigationwells provide irrigation watert tot ther ranch. The wells providea combined capacityof5,550: gallons per minute (10.3 gallons per usable acre). Water is distributed through underground high-  There aret twol building yards. Onei is located withini thei industrially-zoned lands andi improved withat farm labor camp; however, because the industrially-zoned lands are omitted from this analysis, this farm labor The second building yard is located at the east end of the ranch, next to the city limits boundary. This yard is improved with al barn and an equipment shed that werei int the process of being restored as oft the valuation date. The building improvements are not affected by thei take and the contributory valuei is not  considered in this appraisal.  Appraisal Report- D'Arrigo Brothers  Page 19  Packet Pg. 249    Wind Turbines  There are two wind turbines located in the middle of the ranch; however, both of these are located on  small parcels owned ini fee by the City of Gonzales and are not part ofi this ranch.  HAZARDS Flood Hazard  The ranch isi identified on FEMA's Flood Insurance Rate Map (FIRM) panels 06053C0414G, 06053C0425G and 06053C0600G, all dated April 2, 2009. These panels indicate that the upper bench is located within Zone) X, an area outside the 0.2% annual chance floodplain, and that the lower bench is within Zone A, an  area with a 1% annual chance flood hazard.  Seismic Hazard  The property is located within a seismically active area of California but is not located within a Alquist- Priolo Special Studies Zone. The nearest fault is the Reliz Fault, which runs along the base of the Santa  Lucia Mountain Range, about 1.5t miles west of thes subject property.  ASSESSED VALUATION &TAXES  The assessed valuation and real estate taxes for the 2023-2024 tax year assigned to the portion of the  Herold Ranch being appraised are summarized ast follows:  Assessed Valuation & Taxes  Assessed Values Improvement  2023-2024: Taxes Countywide &  APN 223-061-023 Total Average tax rate Average per usableacre  Land Value $21,013,005 $40,218  Value Total Value_ Direct Charges Agency Taxes Total Taxes $624,240 $21,637,245 $21,552.28 $247,395.26 $268,947.54  $21.013.005 $624.240 $21.637.245 $21.552.28 $247.395.26 $268.947.54  1.14%  $499.90]  Farmland. Security Zone Contract  The ranch is subject to al Farmland Security Zone (FSZ) Land Conservation Contracts (LCC) with the County of Monterey. LCCs are often referred1 to as Williamson, Act Contracts, which in California provide taxi relief toa agricultural property owners who contract with their county to restrict the use of the property during As standard LCCis a minimum of 10 years and under this contract the assessed valuation is predicated on the agricultural income value oft the property. An FSZI has a 20-year term and under this type of contract,  the contract period to agricultural and open space use.  Appraisal Report - D'Arrigo Brothers  Page 20  Packet Pg. 250    the assessed valuation is based one 65% ofthe California Proposition 13/valuation or Wllamsonyaluation, whichever is less. All land conservation contracts automatically renew annually for an additional year, The assessed land valuation of $21,013,005 is the restricted FSZ value. The Proposition 13 land value is  unless either party files a' "notice ofr non-renewal".  $34,733,566. PROPERTY RIGHTS  Ap preliminary title report was not provided; however, we are aware ofai few easements on this property  that are pertinent to this assignment. These easements are: summarized as follows:  Agricultural Conservation Easement  The Herold Ranch is subject to an agricultural conservation easement that dates back to 1994 (Reel3159 Page 897). The easement is intendedi to preserve the ranch's prime agricultural usei in perpetuity.  Sanitary: Sewer Easements  There are several sewer easements that run through the subject property. The proposed SSES run alongside these existing sewer easements, and the proposed TCE generally follows the existing and proposed SSEs. The existing sewer easements vary in width from 5 to 20 feet and are depicted on the  following map.  7ln 1978 California voters approved Proposition 13, which limits the maximum amount of any ad valorem tax on real property to one percent (1%) of the assessed value plus approved bonds and assessments; and it placed a maximum of 2% pery year that the assessed value couldi increase, unless the property has a change of ownership.  Appraisal Report- - D'Arrigo Brothers  Page 21  Packet Pg. 251    PropertyE Boundary Existing Sewer Easements 12.5'/15'/20 Existing Easement Width  Note: Thiss segment consists ofai 15-foot easement centered ont the property! line, plusa 5-foote easement tothe! NEC ofthe1 15-foote easement forat totals sewer easement width af12.5 feet ont thes subject property.  Google Earth LAND USE POLICIES  The portion of the Herold Ranch being appraised is located within an unincorporated area that is under the land use jurisdiction of Monterey County. The ranch is located within Gonzales' sphere of influence but outside of the urban growth boundary and outside of the City's permanent agricultural edge, which runs along the city limits boundary in the vicinity of the subject property and would preclude expansion The ranchi is designated as' "Agricultural" by the Monterey County General Plan. Agricultural lands willf fall within thet three land use categories, andi the Herold Ranchi is categorized as Farmlands. The General Plan  toi the west.  defines Farmlands as follows:  Farmlands (F): Farmlands are typically 40-acre minimum sites, and allow a range of uses to conserve and enhance the use of the important, farmlands in the County of Monterey while also providing opportunity to establish necessary. support and ancillary facilities for those agricultural  uses.  Consistent withi the General Plan, the Herold Ranch is zoned Farmlands (F-40). The minimum parcel size  requirement for creating a new parcelis 40 acres.  Appraisal Report- - D'Arrigo Brothers  Page 22  Packet Pg. 252    HIGHEST & BEST USE  Highest and best use is defined as follows:  The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial  feasibility, and maximum productivity.  AsIfVacant  The property is located within an intensive farming district oft the Salinas Valley where the historical use oft the: subject property and adjoining properties that are outside oft the city limits boundary: are dedicated Land use policies are also oriented toward an agricultural use, and the existing agricultural conservation Therefore, the highest and best use of the propertyi is agriculture and the most probable agricultural use  to an irrigated row crop agricultural use.  easement would preclude the conversion of thei farmland to a non-agricultural use.  isir irrigated row cropi farming of fresh vegetables.  As Improved  The irrigation wells and pipelines support the highest and best use of the land and their value isi included The building improvements on the subject include an older barn and equipment shed, which as of the valuation date were being rebuilt. The buildings provide utility to the agricultural operation and support  int the underlying land value.  the highest and best use of the land. VALUATION COMMENTS  The purpose oft the appraisal ist to estimate the "fair market value" oft the real propertyi in accordance with California eminent domain civil procedure codes. As per California law the valuation process involves  several steps which are summarized as follows:  1) the fair market value oft the property before the take; 2) the fair market value oft the part taken; 3) the fair market value oft the remainder as part oft the whole; 4) the fair market value of the remainder before considering special benefits; and 5) the fair market value of1 the remainder considering special benefits. Dictionary of Real Estate Appraisal- 6th Edition. (Chicago: Appraisal Institute, 2015)p.1 109  Appraisal Report - D'Arrigo. Brothers  Page 23  Packet Pg. 253    FAIR MARKET VALUE OF THE PROPERTY BEFORE THE TAKE  The sales comparison and income approach are used to estimate thei fair market value of the property, which aret thet two common methods utilized in the valuation of Salinas Valleyf farmland. napplyingthese appraisal methods, the components of value include the land and the land improvements, which consist oft thei irrigation wells, pumping plants and irrigation pipeline. Int the Salinas Valley, the contributory value of the land improvements is included in the land value and the common unit of measurement for In the sales comparison approach, an opinion of value is derived by analyzing and comparing similar properties that have recently sold, are listed for sale, or are under contact. A major premise oft the sales comparison approach is that the market value of a property is related to what is being paid for Thei income approachi is applicable as Salinas' Valleyi farmland is commonly rented andt therei isav veryactive market of real estate investors. From an investor's point-of-view, earning power is the critical element affecting property value. One basic premise of this approach is that the higher the earnings, the higher The most common income valuation technique is the direct capitalization method, which employs the  comparison purposes is the price per usable acre.  comparable, competitive properties.  the value, providedi the amount ofr risk remains constant.  following relatively simple algebraic formula:  Income /Overall Rate = Value  The income is the market rental value of the farmland and the overall rate represents the rate of return that is being obtained within the marketplace for similar properties. This approach is commonly applied in the Salinas Valley by the market participants. Even buyers who intend to farm the property consider value based on the relationship between a propertyseconomic. rental value and the price to be paid.  SALES COMPARISON APPROACH indicative of value:  Ina applying the sales comparison approach, the following sales are judged to be ther most comparable and  Appraisal Report-D D'Arrigo Brothers  Page 24  Packet Pg. 254    Summoryofformlonds Sales Saler number Ranchr name Salec date Location Nearestcity Grantor Grantee Gross acreage Nonf farmablea acreage Other landu useacreage Usablea andi irrigatedf farmacreage Saleprice  Wing Massa 305,7 0.0 p0 305.7  Wimer  Harney  Vosti  Nielson  Herold Breschini  Hunter  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 10/27/2023 6/30/2023 ChualarCynRd Highway1 101 SpenceR Rd River Rd Olds Stage Rd Alta Street Hwy 101 Hunter lane Vellow) Juliet Gill& Hitcock Springbrook D'Arrigo C.M.Nielsen Ptn D'Arrigo Caprara  Chualar Chualar Chualar Gonzales Wimer Clayton 138.6 5.0 p0 133.6  Salinas Gonzales Soledad Salinas Vosti C.M.Nielsen Ptn Meyers Breschini Duckworth  Rochal 82.8 0.0 p.0 82.8  147.0 1.0 .0 146.0  95.4 0.0 0.0 95.4  188.5 0.0 10 187.5  560.4 0.8 21.6 538.0  179.7 50.7 0.0 129.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $10,000,000 $7,200,000  Price peru usablea acre land &I impr) $60,500 $61,200 $64,700 $66,000 $68,700 $77,100 $77,500 $87.000  Sales Location Map  GoogleEarth  Appraisal Report- - D'Arrigo. Brothers  Page 25  Packet Pg. 255    Sale 1: Wing Ranch, Chualar The Wing Ranch is located on the east side of Highway 101, just north of Chualar and approximately 7 miles southeast of Salinas. This is within an intensive agricultural area where most of the farmland is dedicated to The property has a level topography with Placentia sandy loam and Chualar loam soils. These are decomposed granite (DG) soils that  row cropi farming.  arei inferiori tot those ont the subject property ast they require ar relatively high degree oft farm management. The entire property is usable with: several wells that are interconnected with underground high pressure irrigation lines. According to the seller, the wells were in good condition and provided adequate water The property was not ont the open market and there was limited market exposure. The tenant was at the end of their lease term and the property sold to an investor who renewed the leased with the existing tenant. The new lease was for at three-year term at a rental rate that is confidential. The contract rent, though, is near market, which ini this area varies from about $2,200to $2,600 per acre, including property  with a good water quality.  taxes. The property sold for $18,500,000, or $60,500 per acre.  Sale 2: Wimer Ranch, Chualar The Wimer Ranch is located oni the east side of Highway 101, between Chualar and Gonzales and about 9 miles south of Salinas. The ranch has direct north and south! bound accesst tot the highway. This location is within an intensive agricultural area where most of the farmland is dedicated to row crop farming.  This property has an irregular shape as the Sooglelartn  northerly boundary oft the ranch borders an open reclamation ditch. The usable land areai is1 133.64acres, and the net crop area is 128t acres. The soils consist of Salinas loam (SaA) and Salinas clay loam (SbA), which are Class 1 soils suitable for growing a variety of crops. Irrigation water is provided from one well that yields about 12 gpm per net acre. Building improvements include one 1,800 square foot pre- engineered agricultural utility-storage building. The building is about 30-year-old of average quality and  Appraisal Report - D'Arrigo Brothers  Page 26  Packet Pg. 256    ingood condition. According to the buyer, the building contributed an added value.  The property was not on the open market and sold directly to the long-term tenant for $8,174,000. An allocation of $74,000 is applied to the shop building and $8,100,000 for thet farmland which equates toa  rounded land value of $60,600 per usable acre. Sale 3: Harney Ranch, Chualar Thel Harney Ranch is located4.2r miles southof Salinas and 3 miles north of Chualar. The property fronts the south side of Spence Road, between Highway 101 and Old Stage The property has al levelterrain, and thes soili is Chualar loam with a Ot to 2%: slope. Irrigation water is provided from two wells with a combined capacity of 2,500 gpm plus there was a third well used mostly for dust control  Road.  andi fort the buildings.  The property had been! leasedi to Tanimura and Antle for several decades. Att thet time ofs sale, the property was farmed in strawberries and vegetables. According to thei tenant, during the 2021 and 2022 seasons this ranch suffered heavy losses to their late summer. andi fall lettuce crops because oft the INVS virus. At thet time ofs sale, the property was: subject toa at three-year Lease with one year remaining and onet three- year option to renew. The contract rent, including property taxes was $2,490 per usable acre. This property was offered for sale in. June 2023 at an asking price of $9,900,000. The demand for the property was limited due in part to the INVS virus, and the increase in interest rates. Piini Realty represented the buyer, whoi is al local strawberry grower, and purchase price was $9,450,000. The buyer was able to take over the farming operation at the end of the 2023 season and intends to transition the  ranch to organic with strawberries being the primary crop.  Appraisal Report-D D'Arrigo Brothers  Page 27  Packet Pg. 257    Sale 4: Vosti Ranch, Gonzales The Vosti Ranch is a 95-acre row crop ranch located on the south side of Gonzales River Road, adjacent to the city limits of Gonzales. The land uses include irrigated row crop farming on the properties outside the city limits and industrial for the adjoining properties within the city limits. The Gonzales General Plan identifies the Vosti Ranch as being within their sphere-of-influence for futureir industrialuse. Developing this property  opEn  fori industrial, though, is problematic as a condition of development would likely require constructing a This property has level, Class 1 and 2 soils that are considered prime and very similar to the subject property and suitable for a wide variety of fresh vegetable crops. Irrigation water is provided from a 38.23% interest in two wells that are: shared between the Vosti Ranch and the neighboring property to the south, which has a 61.77% interest in each well. Buldingimprovements include one olderfarmhouse, two old barns and two older farm labor houses. The improvements were in poor condition and did not The property was listedi forsale with Piini Realty; however, at the request of thes sellers, it was only offered to the tenant and the adjoining owner and was purchased by the long-term tenant. The purchase price was reflective primarily of the property's agricultural use. The buyer and seller considered industrial development as being al long-term speculative use and the buyer was motivated to sell the property in  new SPRR crossing, which would require SPRR's permission.  contribute an added value.  2020.  Sale 5: Nielson Ranch, Salinas The Nielsen Ranch is located about 5 miles south of Salinas oni the east side of the Salinas Valley, adjacent to the base of the Gabilan Being at the base of this mountain range, the farmland in this area is characterized by decomposed granite soils that are abrasive on equipment and require a higher degree of farm management as compared to the Appraisal Report - D'Arrigo Brothers  Mountain Range.  Page 28  Packet Pg. 258    farmland along the valley floor of the Salinas Valley. The primary crops grown in this area are fresh vegetables. Strawberries are also grown ini this area; however, this is at the southern fringe for berries. The water resource at the base oft the Gabilan Range is limited as this Eastside Aquifer relies primarily on winter rain runoff from the Gabilan Range and less from the Salinas River. Groundwater wells in the Eastside Aquifer are mostly developed to about 500 to 800 feet and the better producing wells are generally found at the westerly end of this area. The primary groundwater well for the property was developed in 2001 and improved with a 300 hp pump and a VFD motor. During the past few years this well was drawing sand ands sand filters were installed to mitigate the sand clogging the: sprinklers and drip emitters. A1950 well, which was equipped with a 300hp diesel motor, was al backup well though it was The Nielsen Ranch contains a gross land area of 187.5 acres and a net farming area of 176 acres. The terrain is gently sloping, and soils are decomposed granite, composed mostly of Chualar loam. The property has been mostly farmed for vegetable crops, with occasional rotations ofs strawberries. This property was offered for sale in May 2021 by Piini Realty and the offering included an adjoining 1- acre parcelthat was improved withano oldersingle-family dwellingt that was ing good condition. Inaddition, the offering took into consideration a potential tax savings if a buyer were to acquire the existing partnership, avoiding reassessment. Maintaining the existing taxes saves approximately $65,000ayear, which was estimated to contribute approximately $400,000 in value based on the present value of the The property went into escrow with the long-term tenant at $13,600,000. During escrow, the main irrigation well started drawing sand. It was believed that a new well would be necessary' within the next five years, and a $223,350 credit was provided to the buyers. The credit was assumed to be 50% oft the cost of a new well. An additional credit of $5,000 was provided to the buyers for the cost of removing Thei final sale price for the farmland and residential parcel was $13,371,650, allocated as follows:  relatively high in salts.  income for 10 years at 10%.  personal property from the residential property.  Sale Allocation Description Farmland Residential parcel Totals  Acres 187.5 1.0 188.5  Price $12,876,650 $495.000 $13,371,650  Price/Acre $68,675 n/a $70,937  Appraisal Report- - D'Arrigo Brothers  Page. 29  Packet Pg. 259    Sale 6: Herold Ranch, Gonzales  Sale 6i is the 2020: sale of the subject property. The ranch was offered on the open market by Piini Realty in September 2019 at an asking price was $37,700,000. Several offers were received and the property sold for $41,500,000 in January 2020. The buyers allocated $5,000,000 of the purchase price to the  industrially-zoned land and farm labor camp, summarized as follows:  Sale price Farmland allocation Usable farmacres Price per usablea acre (rounded)  $41,500,000 $5,000.000 $36,500,000 538.00 $67,800  Less: Buyer allocation to industrially zoned lands andf farml labor camp  Sale 7: Breschini Ranch, Hwy 101, Soledad The Breschini Ranch is a 2023 farmland sale located on the west side of Highway between Soledad and Greenfield. Access is provided from a paved frontage road to Highway 101. Irrigated row crop farming is the primary use int the general area oft the sale and agricultural rents vary from about $1,500 to $1,800 per acre, including propertytaxes.  GobgleEorth  This property has a gross land area of about 180 acres and extends from Highway 101 tot the Salinas River. Approximately 50 acres are int the river andi the usable land area is 130t acres. The soil consists of about 75% Elder sandy loam and 25% Arroyo Seco gravelly loam. These are well drained soils that formed in granitic alluvium and sedimentary rocks. Irrigation water is provided from two groundwater wells and reportedly the water quantity is abundant, and the quality is very good. Building improvements include an older single-family dwelling and several outbuildings, all in very poor condition and unoccupied. This property was not on the open market and sold directly to the tenant, who farms and owns several other properties int thei immediate area. The property: soldf for $10,000,000, whichi is an exceptionally high price compared to other sales and agricultural rents. Applying a relatively high gross rent of $1,800 per acre, the net return after property taxes is 1.5%, which is one of the lowest rates of return in the Salinas Valley. In the final analysis, this sale is excluded as direct market comparable as it is considered an  aberration within the market and noti indicative of market value.  Appraisal Report- - D'Arrigo Brothers  Page. 30  Packet Pg. 260    Sale 8: Hunter Lane Ranch, Salinas The Hunter Ranch is located 0.7 miles southwest of Salinas and is within the Spreckels District of the Salinas Valley. The Spreckels Districti is bounded by! Highway 68to the west, the Salinas River and the town of Spreckels to the south, Abbott Road and Highway 101 to the north and the Salinas River and the former Firestone plant representing the easterly end.  This area is known for its loamy soils, good water quality and a coastal climate suitable for strawberries and a variety of Salinas Valley vegetable crops including late-summer lettuce. Rents in this area trail slightly behind the Blanco area and range from about $3,500 to $4,000 per acre. Similar to the Blanco This property is situated on the south side of Hunter Lane and has a rectangular shape and level topography. The soil is mostly composed of Salinas series soil, which is a prime soil with few limitations and capable of growing a wide variety of fresh vegetables and strawberries. The property is improved with one older groundwater well that was developed in 1963 to a depth of 2561 feet and one older single- family dwelling. The well casing is deteriorating and will need to be replaced within a few years. The estimated cost to develop a new well into the 400-foot aquifer was $320,000, which the buyer plans to do. The dwelling was in poor condition and the buyer anticipates spending about $100,0001 to $150,000 on house improvement repairs after the sale and then use the house for employee housing. In the as-is The property was leased for at three-year term with ai termination date of October 31, 2025. The gross The property was listed with Piini Realtyi in April of 2023 at an asking price of $90,000 per acre, was under contract at thel beginning of June, and closed escrow on. June 30thi for $87,000 per acre. While the buyer isal local strawberry grower, they intend to continue leasing the property to the existing tenant as their The buyers intendi to entert the propertyi intoal Farmland! Security Zone contract ands spend about $320,000 on capital improvements fora a new well resulting in a total investment of $7,520,000. Based on thel lease terms and projected property taxes, the overall rate of return is about 2.9% in Year 1 and increases to  District, farmland turnovers ini the Spreckels District are rare.  condition of the dwelling, it did not contribute an added value nora a cost to remove.  rent obligation of thet tenant was $3,600 per acre.  motivation is foral long-term passive investment.  about 3.5% in Year 3.  Appraisal Report- - D'Arrigo Brothers  Page. 31  Packet Pg. 261    Sale Adjustments Property Rights Conveyed  The subject property is subject to an agricultural conservation easement; however, the prior sale of this property (Sale 6) indicates that there was no discount attributable to this easement. A property rights adjustment is not applied to thes sales to account for this easement ont the subject property. Sale! 5 involved a buyout of an existing partnershipi that provided a tax! benefit to the buyer. This benefit contributed about $400,000 in value. To compare this sale to the subject, this benefit is deducted from The remaining sales involved the sale ofa 100% ownership interest in either the fee: simple or leased fee interest. For those properties that were leased, the lease terms did not have a significant effect on the  the sale price as a property rights adjustment.  purchase price. A property rights adjustment is not warranted.  Financing Terms warranted. Conditions of Sale  The sales were either involved cash sales or conventional financing. Afinancing terms adjustment is not  The sales were all arms-length transactions and a conditions of sale adjustment is not warranted.  Expenditures. After Sale  Sale 5 and 8 will require new wells. The buyer of Sale! 5 was credited $223,350i in escrow for halft the cost ofa neww well. This credit is added toi the purchase price as an after-sale expenditure. The cost ofar new well on Sale 8 was estimated at $320,000, which is added as an after-sale expenditure.  Market Conditions  The sales occurred between January 2020 and September 2023. During this period, interest rates and inflation were increasing, and agricultural rents were generally appreciating at a rate of 2.0%to 3.0% per year. During this period, two relatively similar properties sold, providing a direct indication as to the change int farmland prices. A paired sale comparison between the: 2020 purchase of the Wing Ranch (Sale  1) and the 2023 sale of the Harney Ranch (Sale 3) indicates thei following:  Appraisal Report -L D'Arrigo Brothers  Page 32  Packet Pg. 262    Market Conditions Adjustment Sale number Ranchr name Area Sale date Usablet farma acreage Farmland allocation pera acre Agricultural adjustment Adjusted farmland alloc/acre Annual %C change  1 Wing Chualar 11/2/2020 305.7 $60,517 0.0% $60,517  to  3 Harney Chualar 9/5/2023 146.0 $64,726 0.0% $64,726  Difference  2.84  7.0% 2.4%  Basedi inj part ont the above an annualt time adjustment of 2.5%i is applied tot the 20201 to 2022: sales through the end of 2023. An adjustment, though, is not applied to Sale 5, which sold in 2021 at al high price that isc considered indicative of current market conditions. Amarket adjustment is also not appliedtothe2023 sales as they are considered indicative of market conditions as oft the valuation date.  Agricultural. Adjustment  The agricultural adjustment pertains to the difference in soil, water and climate between the sales and thes subject. The adjustments applied are predicated on internal comparisons between these sales as well as a comparison of rental values. The following paired sale comparisons are considered in determining  appropriate agricultural adjustments.  Location. Adjustment Sale Comparison: #1 Sale number Ranch name Area Sale date Usablefarmacreage Farmland allocation per acre indicated % difference  1 Wing Chualar 11/2/2020 305.7 $60,500  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 9.2%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 12.1%  Appraisal Report -L D'Arrigo Brothers  Page 33  Packet Pg. 263    Sale Comparison: #2 Sale number Ranchr name Area Sale date Usablef farmacreage Farmland allocation per acre Market conditions adjustment Adjusted price per acre indicated' % difference Size  8 Hunter Salinas 6/30/2023 82.8 $90,876 0.0% $90,876  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 7.9% $71,284 -21.6%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 10.0% $74,619 -17.9%  Generally, there is an inverse relationship in unit prices based on size; however, int the Salinas Valleyt there is generally not a significant per-acre difference for farm properties. Institutional investors and many growers prefer 2001 to 500 acres to 20 to 100 acres because of economies of scale and the efficiency of  farming al larger property. Therefore, a size adjustment is not applied to these sales.  Sale Adjustment. Summary  The following tables summarize the adjustments applied tot the sales.  Adjustment: Summary Saler number Ranch name Saled date Location Nearestcity Usablef farma acres Saleprice Non-farmland: allocations Farmland allocation Propertyr rights adjustment Adjusteds salep price Expenditures after sale Adjusteds salep price Adjusted pricep per usablea acre Market conditions adj. @2 2.5% Adjusted priceper usablea acre Agricultural: adjustment Adjusted pricep per usablea acreirnd" $71,800  Wing Wimer Chualar Chualar 305.7 133.6 $0 $74.000 $0 SQ $60,517 7.9% $65,304 10.0%  Harney  Vosti  Nielson  Herold  Hunter Salinas 82.8 $0 so  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023  Chualar Cyn Rd Highway: 101 Spence Rd  River Rd OldStageRd Alta Street Hunter Lane  Chualar Gonzales 146.0 So $O $0 $64,726 0.0% $64,726 10.0%  Salinas Gonzales 187.5 $o $495.000 $5.000.000 $0 -$400.000 $Q $223.350 $66,038 $65,093 7.9% 0.0% $71,284 $65,093 0.0% Z.5% $71,300 $70,000  95.4  538.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $11,981,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,205,000 $36,500,000 $7,520,000  $0 $0 $61,718 5.6% $65,190 7.5% $70,100 $71,200  $0 $o $320.000 $67,844 $90,876 10.0% 0.0% $74,619 $90,876 0.0% :20.0% $74,600 $72,700  Appraisal Report- - D'Arrigo Brothers  Page 34  Packet Pg. 264    The above table provides an adjusted range of $70,000 to $74,600 per usable acre. Sale 6, which is the prior sale oft the subject property, provides the highest indication, but considering the other sales of this analysis, al lowerv value isappropriate. The remaining sales provide a range of $70,000to $72,700 per acre from which a value of $71,500 is concluded for the Herold Ranch from the sales comparison approach.  Hence, Land area (acres) Land value per usableacre  538.0 $71,500 $38,467,000  Land value from the sales comparison approach  Appraisal Report -L D'Arrigo Brothers  Page. 35  Packet Pg. 265    INCOME APPROACH  The income approach is based upon the economic principle of anticipation that value is created by the expectation of benefits to be derived in the future. There are a variety ofi income approaches, of which the Direct Capitalization Method is employed for estimating the fee simple land value. The Direct Capitalization Method applies an overall capitalization rate to a single year's net operating income (NOI). By dividing the NOI by an appropriate capitalization rate, the value estimate by the income approach is derived. This is an appropriate method whent thei income: stream, either actual or estimated, is generated  by rental rates at or near thet fair market level.  Gross Market Rent value is defined as:  Thei first stepi in applying thei income approach requires estimating the market rental value. Market rental  The most probable rent that a property should bring in a competitive and open market reflecting the conditions andr restrictions ofaspecified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and  purchase options, and tenant improvements (TI's).9  Int the Salinas Valley, most leases are written onar net basis witht thet tenant responsible for propertyt taxes. If property taxes were relatively similar amongst agricultural properties, the economic rent would be derived strictly from comparing net rents. However, because of California's Proposition 13 tax code and CSIP fees, the assessed valuation amongst properties can vary depending upon when the last transfer occurred or whether it is within CSIP. Hence, propertyt taxes are not consistent from one property to the next, and to accurately compare the rental value of properties the appropriate unit of measuring is the Ine estimating the gross market rental value, we conducted: ani investigation intoa agriculturalrentsi involving irrigated farmland located in the central portion oft the Salinas Valley. Thegenerala area oft this market rent  "gross rent" paid by thei tenant, which consists of the net rent and property taxes.  investigation is depicted below:  Dictionary of Real Estate Appraisal- - 6th Edition, Appraisal Institute; p. 140.  Appraisal Report - D'Arrigo Brothers  Page. 36  Packet Pg. 266    GpogleEarth  Within the area depicted above, 11 comparable leases are considered in estimating the market rental value of the subject property. Due to the confidential nature of leases, the parties and/or propertiesare  not specificallyi identified, but are: summarized as follows:  Summary of Comparable Farm Leases Lease No. Area  Soil Summary 09/1009/0% 0%/1009/0% 179/81%/2% 09/1009/0% 0%/100%/0% 2596/75%/0% 09/1009/0% 5%/90%/5% 259/759/0% 0%/09/100% 0%/100%/0%  2024. Season Gross Rent $2,260 $2,410 $2,424 $2,430 $2,500 $2,515 $2,560 $2,600 $2,615 $2,630 $2,840]  Lease Term Sandy/Clay Loams/DGS  Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Gonzales to Soledad Salinas to Chualar Chualar to Gonzales  2023-2025 2022-2025 2024-2027 2022-2025 2023-2026 2021-2024 2023-2026 2023-2026 2021-2025 2023-2026 2021-2024  10 11  Appraisal Report- - D'Arrigo Brothers  Page 37  Packet Pg. 267    The above table provides an overall range of $2,260 to $2,840 per acre. Within this range, Leases 2t to10 provide the greatest comparability to the subject property and indicate a range of $2,410 to $2,630 per acre. In consideration for the soils and water improvements, a rent at the upper end of this range would bee expected, and a gross rent of $2,600 per acre is concluded as the market rent of the Herold Ranch.  Expenses  Propertyi taxes represent the primary expense item int this valuation. As noted previously, thei farmland is subject toal Farmland. Security Zone Land Conservation Contract. Ini the event ofasale,t the re-assessment under California's Proposition 13 property tax code would be 65% of the lesser of the property's In the income approach, the property taxes under an FSZ contract are accounted for by adding direct property taxes as a line item and adding 65% of the property tax rate tot the capitalizationrate.  Proposition 13 value or Williamson value.  Capitalization Rate  Ine estimating an appropriate capitalization rate, consideration is given to the sales included in the sales  comparison approach. The market data is summarized as follows:  Summary ofFormland Copitalization Rates Sole number Ranchr name Salec date Location Usablefarma acres Farmlanda allocation Expenditures after sale Adjustedf farmlanda allocation Farmland allocation pera acre Gross incomep per acre Propertyt taxe estimate upons sale Neti income pera acre Capitalization rate  Wing 305.7 $0 $60,500 $2,465 $465 $2,000 3.3%  Wimer 133.6 $0 $61,700 $2,600 $475 $2,125 3.4%  Harney 146.0 $0 $64,700 $66,000 $2,485 $490 $1,995 3.1%  Vosti Nielson 95.4 187.5 $0 $223.350 $67,200 $2,500 $2,600 $750 $250 $1,750 $2,350 2.7% 3.5%  Herold Hunter 538.0 82.8 $0 $320.000 $67,800 $90,900 $2,500 $3,600 $505 $715 $1,995 $2,885 2.9% 3.2%  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,605,000 $36,500,000 $7,520,000  Chualar CynR Rd Highway1 101 SpenceRd  River Rd OldStageRd Alta Street Hunter Lanel  The above table provides a range of 2.7%1 to 3.5%. Sale 4 at 2.7% provides the lowest indication and is near the subject property; however, this ranch has a long-term potential fori industrial development and ar rate above 2.7% applies to the subject property. The remaining sales provide a range of 2.9% to 3.5%. While rates have been trending upwards in recent years, it is estimated that demand would be strong for thes subject property due toi its soils, location, and water quality. Arate towardi thel lower end of this range  isa appropriate, and a rate of 3.0% is applied. Hence,  Appraisal Report - D'Arrigo Brothers  Page 38  Packet Pg. 268    Usableacres Gross rent per usableacre Gross annual rent Less: Direct property taxes Net annual income before %b based taxes Capitalizationrate Add: FSZ adjusted taxrate Weighted capitalization rate Capitalized value Rounded to Value per usableacre FAIRI MARKET VALUE CONCLUSION  538.0 $2,600 $1,398,800 $21,552 $1,377,248  3.00% 0.74%  1.14% x 65.0% =  3.74% $36,793,374 $36,790,000 $68,400  The two approaches to value provide the above indications. Greater weight is given to the sales comparison approach due to the market data available. Based upon the above, thei fair market value of  the Herold Ranch before thei take is concluded as follows: Valuei indicated fromt thes sales comparisonapproach Valuei indicated fromt the income approach Fair market value of thep property before thet take Fair value value per acre (rounded)  $38,467,000 $36,790,000 $37,929,000 $70,500  Appraisal Report-L D'Arrigo Brothers  Page 39  Packet Pg. 269    FAIRI MARKET VALUE OF THE PART TAKEN  As per the legal descriptions of the proposed takes, which are includedi in the addendum, the parts taken  are depicted as follows:  Property Boundary Proposeds SSEs (Approx) Proposed1 TCES (Apprax)  The five permanent. SSEs are 5.0and 15.01 feet in width and run immediately adjacent to existing sanitary sewer easements that were depicted previously in this report. According to the legal descriptions included ini the addendum, the SSES encumber: at totai of2 25,411t square feet. This appraisali is predicated on the extraordinary assumption that the new conveyance line will be buried to a depth that will not The TCEs arei temporary easements that runa alongt the existing and Propoedsewereasements as depicted above. The width of the easements varies from about 15 to 50 feet. According to the legal description included ini the addendum, the TCE encumbers at totald of7.67tacres. However, thisi includes lands within the existing and proposed SSEs. Omitting the land within the proposed SSEs, the TCE encumbers  interfere with the farming operation, including deep ripping.  approximately 6.86t acres.  The proposed easements are: summarized as follows:  Appraisal Report- -4 D'Arrigo Brothers  Page 40  Packet Pg. 270    Take Summary Description Sanitary Sewer Easements (SSE) SSE#3 SSE#4 SSE#6 SSE#7 SSE#8 Total SSE TCE#9 TCE#10 Subtotal  Square Feet 2,428 3,390 13,318 3,737 2,538 25,411 324,086 9.829 333,915 25,411 308,504  Acres  0.58 7.44 0.23 7.67 0.58 6.86]  Temporary Contruction Easement (TCE)  Less: Area within proposed! SSEs Total TCE area outside of existing and proposed SSEs EASEMENTS#3,4,6,78: 8( (SANITARY SEWER EASEMENTS)  Thet fair market value of the property before thei take was concluded at $70,500 per acre. The fair market value of the SSES would be less than the fee simple value because the fee owner retains use of the easement areai for internali roads andi farming. The value ofthe SSEs is concluded at! 50% of thei fee value.  Therefore, the value of the part taken is calculated as follows:  Take Area (Square Feet) 2,428 3,390 13,318 3,737 2,538  Value perAcre $35,250 $35,250 $35,250 $35,250 $35,250  Value of the Part Taken $1,965 $2,743 $10,777 $3,024 $2,054 $20,563  Description SSE# #3 SSE #4 SSE# #6 SSE#7 SSE#8  Fair market value oft the part taken  EASEMENTS #9 &: 10 (TEMPORARY CONSTRUCTION EASEMENTS) The value of the TCEs is considered latera as iti is onlyat temporary taking.  Appraisal Report- - D'Arrigo Brothers  Page 41  Packet Pg. 271    FAIRI MARKET VALUE OF1 THE PART1 TAKEN  The fair market value of the part taken is concluded as follows:  Fair market value of the part taken  $20,563  FAIRI MARKET VALUE OF THE REMAINDER AS PART OF THE WHOLE  Thei fair market value of the remainder as part of the whole is the fair market value of the property before  thet take less thet fair market value oft the part taken, which is calculated: as follows:  Fair market value of1 thep property beforei thetake Fair market value of the parttaken Fair market value of the remainder as part oft the whole  $37,929,000 $20.563 $37,908,437  FAIRI MARKET VALUE OF THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS  There are no damages associated withi thet take as the remaining acreage would retain a value of$70,500 per acre. Therefore, the fair market value of the remainder before considering special benefits is  concluded as follows:  Fairr market value of ther remainder as part of the whole  $37,908,437 $0 $37,908,437  Damages  Fair market value of the remainder after the take before considering special benefits  FAIRI MARKET VALUE OF THE REMAINDER CONSIDERING SPECIAL BENEFITS  The project does not provide special benefits. Therefore, thet fair market value oft the remainder aftert the  take and after considering special benefits is as follows:  Fair market value of the remainder after thet take! before considering special benefits Fair market value of the remainder after the take after considering special benefits  $37,908,437 $O $37,908,437  Special benefits  Appraisal Report - D'Arrigo Brothers  Page 42  Packet Pg. 272    FAIRI MARKET VALUE OF THE TEMPORARY CONSTRUCTION EASEMENT  The proposed TCE nocumpersapproximate'y 6.86t acres oft the subject property, excluding the land areas within the proposed SSES. The easement would encumber the property for 6 months, commencing The value of the TCE is predicated on an appropriate land rent for the TCE for its duration. The market rent of the subject property was previously estimated at $2,600 per acre. Hence, the value of the TCEis  November1 1,2 2024 and continuing through April 30, 2025.  concluded as follows:  TCElanda area (acres), excluding the landa area within existing and proposed SSES  6.86 $2,600 $17,827 6 $8,914  Gross annual rent per acre Annual rent for thel TCE Estimated duration oft thel TCE (months) Fair market value of the TCE  Additionally, the property owner will have to install farm roads along the TCES to continue farming the remainder of the property during the construction period. It is assumed that these farm roads will be 12 feet wide, running adjacent to the TCES. Based upon these assumptions, the temporary farm roads will The land area within the TCES and this adjoiningi farm road willl likely be compacted fromi the construction and/or road use and will likely require a period of time to restore those lands to a farming use. These lands could also provide limited utility to the property owner for the remainder of the 2025 season depending on crop planting schedules. To account for this restoration period and potential interruption of crop planting schedules, an additional 61 months is applied to these lands to provide sufficient timei to  take in approximately 2.92t acres.  rip, till and prepare the soils fora ai farming use.  Compacted landa areas (acres) TCElandarea Additional land area adjacent toi thel TCE Total compacted land areas Gross annual rent per acre Annual renti fort the compacted land areas Additional value for TCE-related compacted lands Appraisal Report - D'Arrigo Brothers  6.86 2.92 9.78 $2,600 $25,422 6 $12,711 Page 43  Estimated duration1 to restorecompacted areas tot farming use (months)  Packet Pg. 273    Thus, thei total compensation for the TCE is as follows:  Fair market value of thel TCE Additonal valuef for thel TCE-related compacted lands Total fair market value of the TCE  $8,914 $12,711 $21,625  COMPENSATION SUMMARY  Fair market value of the part taken as part of the whole  $20,563  Damages & special benefits Damages Less: Special benefits Subtotal Value oft thel TCE Total value oft the take  $0 $0  $o $21,625 $42,188  Appraisal Report- - D'Arrigo Brothers  Page 44  Packet Pg. 274    CERTIFICATION  Icertify that, to the best of my! knowledge and belief:  The statements of fact contained in this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject of this report, and no Iwasi involved with brokering the 2020: sale oft the property to the current owners and appraised these proposed takes in 2023 and 2024 for the City of Gonzales, but have performed no other services, as an appraiser ori in any other capacity, regarding the property that ist the: subject oft this report withini thet three-year, period immediately preceding acceptance of this assignment. Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 oft the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the: subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements oft the Appraisal Institute relating to review As oft the date oft this report, John W. Piini, MAI has completed the continuing education program  opinions and conclusions.  personali interest with respect to the parties involved.  involved with this assignment. predetermined results.  subsequent event directly relatedi to the intended use of this appraisal.  Appraisal Institute. certification.  byi its duly authorized representatives. for Designated members of the Appraisal Institute.  Mhn  W. Piini, MAI  A  Certified General Real Estate Appraiser State of California, BREA Number AG005214  Appraisal Report- - D'Arrigo Brothers  Page 45  Packet Pg. 275    CERTIFIÇATION  certifyt that, to the best of my knowledge and belief:  The statements off fact contained ini this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject oft this report, and no Iwas involved with brokering the 2020: sale of the property to the current owners and appraised these proposed takes for the City of Gonzales in 2023 and 2024, but have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As of the date ofthis report, Greg Piini, MAI has completed the continuing education program for  opinions and conclusions.  personal interest with respect to the parties involved.  involved withi this assignment. predetermined results.  subsequent event directly related tot thei intended use of this appraisal.  Appraisal Institute. certification.  by its duly authorized representatives. Designatedmembers of the Appraisal Institute.  Certified-General Real Estate Appraiser State of California, BREAI Number AG044270  &  Appraisal Report -L D'Arrigo Brothers  Page 46  Packet Pg. 276    LIMITING CONDITIONS  Assumptions and Limitations of Appraisal  This appraisali ist for no purpose otherthan propertyvaluation, andi the appraiser(s)i is neithero qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations tot the accuracy of thei information and analyses contained int this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read  this entire section to understand these limitations. Appraisal is not al Legal Opinion discussed int the report.  No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to ber marketable andi free and clear of alll liens and encumbrances, easements, andi restrictions except those specifically discussed int thei report. Theproperty is appraised assuming it to be under responsible ownership and competent management and available Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting thes subject property was notp performedfor Itis assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation. Any significant question should be addressed to local zoning or land use officials and/or ranattorney. Itisa assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and  fori its highest and best use.  this appraisal.  regulations affecting the subject property.  Appraisal Report - D'Arrigo Brothers  Page 47  Packet Pg. 277    Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless as signed contract has been executed priort tot the date oft this report.  Appraisal is not a Survey  No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist. Iti is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless notedi in the report. All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) isn not a construction, engineering, environmental, or legal expert, and any statement given on these The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for No opinion is expressed as tot thev value ofs subsurface oil, gas or mineral rights and that the property is not subject to surface entry fort the exploration or removal of such materials except as is expressly stated.  encroachments, or other survey matters.  Limited Data  matters int this report should be considered preliminary in nature.  other components  any such condition ori for any expertise or engineering to discover them.  Appraisal Report- - D'Arrigo Brothers  Page 48  Packet Pg. 278    No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. Itisi further assumed that the lot does not contain any type of dumps site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted int the report. Ifanyproblems of this nature are knowni tot the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. Ifit is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested partyi is concerned about thee existence, condition or adequacy ofany particular item, we would  additional cost willl be necessary to estimate the effects ofs such.  strongly suggest that a construction expert be hired fora a detailed investigation.  Appraisal Report Limitations  Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning thes subject property ort ther reale estate market. While not factors we believet tol be: significant but unknown to the client have been knowingly withheld, it is always possible that we have information ofs significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue  provided by others, etc.  additional data gathering for al higherl level of certainty.  Appraisal Report -L D'Arrigo Brothers  Page 49  Packet Pg. 279    Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendationt to act. Any actions taken byy you, the client, ora any others should bel based on your own judgment, and the decision process should consider many factors other than just Appraisal reports made for lenders are technical documents specifically made to lender requirements. Casual readers are cautioned. about their limitations and cautioned against possible misinterpretation of Neither all nora any part oft the contents oft this report, especially any conclusions as to value or thei identity oft the appraiser ort the firm to which appraiser is connected, shall be disseminated toi the publici for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author. The estimated market value, whichi is defined ini ther report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or nationalorigin of the present owners or occupants of the properties int the vicinity of the property  the value estimate and information given in this report.  the information contained ini these reports.  economically in the marketplace as oft the date of value.  appraised.  Acceptance of Appraisal Report authorized representatives.  The use oft this report is subject tot ther requirements of the Appraisal Institute relating to review byi its duly This appraisal is an estimate of value based on an analysis ofi information knowni toi the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect ori incompletei information. Ifnewi information ofs significance comes tol light, ori ifany conditions become apparent not previously known toi the appraiser(s) which would affect the value of the property, the value given int this report is subject to change without notice and a re-appraisal at additional cost will Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited tot the amount ofi fee received by the appraisers(s).  ber necessary.  Appraisal Report- - D'Arrigo Brothers  Page 50  Packet Pg. 280    ADDENDUM  Packet Pg. 281    Grant Deed of APN 223-061-0023  Easement #3 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B oft the Rancho Rincon del lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion oft thei tract of land described in the deed recorded January: 2,2020 as Document Number 2020000064, said tract ofl land also being shown on the map filed in' Volume 18 of Surveys at Page 87, Official Records of said County, being particularly described Astrip of land! 5f feet in width lying northwesterly of and contiguous toi the westerly line of an existing 151 foot wide: sanitary sewer easement described in the deed recorded on December 22, 1931 in Book 321, Page 21 of Official Records of said County, the easterly line ofs said 5f foot wide BEGINNING at a point on the westerly line ofs said 15 foot wide sanitary sewer easement, from which point the northerly terminus of the easterly line of said tract of land described in said deed recorded as Document Number 2020000064 and shown on said mapi filed in Volume 18 of Surveys at Page 87, said easterly line labeled as N52° 04' 43"E, 2256.57' ons said map, bears the following two courses: (1) South 36°27'00" East, 15.051 feet to said easterly line of said land; thence along said easterly line (2) North 53°33'00" East (shown as N52° 04' 43"E on said map), 1344.73 feet to the northerly terminus ofs said easterly line ofs said land; thencet from said POINT OF BEGINNING along said westerly line of said 15 foot wide sanitary sewere easement thet following course: 1) South 53°33'00" West (S 52° 08'W in said easement deed), 485.58 feet toi the end of said: strip.  as follows:  strip being more particularly described as follows:  Containing an area of 2,428 square feet, more or less. This legal description was prepared by: DRAFT  Lynn A. Kovach P.L.S.5321 Dated: December17,2021  Packet Pg. 282    5  301 epIm ,00'09. MeN!  1Z-80-12E quewespa SS bupsixg  Packet Pg. 283    Grant Deed of APN 223-061-0023  Easement #4 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of thet tract ofl land describedi in the deed recorded January 2, 2020 as Document Number 2020000064, said tract ofl land also being shown on the map filed in Volume 18 of Surveys at Page 87, Official Records of said County, being particularly described  as follows:  As strip of land lying northwesterly of an existing 15 foot wide sanitary sewer easement described in the deed recorded on December 22, 1931 in Book: 321, Page 21 of Official Records of said County,  said stripl being more particularly described as follows:  BEGINNING at a point on the westerly line of said 151 foot wide sanitary sewer easement, from which point the northerly terminus oft the easterly line of said tract of land described in said deed recorded as Document Number 2020000064 and shown on said mapi filedi in' Volume 18 of Surveys at Page 87, said easterly line labeled as N52° 04' 43"E, 2256.57' on said map, bears thet following two courses: (1) South 36°27'00" East, 15.051 feet to said easterly line of said land; thence along said easterly line (2) North! 53°33'00" East (shown as N52° 04' 43"E on said map), 1830.31 feet to the northerly terminus of said easterly line of said land; thence from said POINT OF BEGINNING along said westerly line of said 151 foot wide sanitary sewer easement the following two courses:  1) South 53°33'0 00" West, 420.25 feet; thence  2) South 12° 07'24" West, 14.24 feet to the northerly terminus oft the! 51 foot wide sanitary sewer easement described ini the deed recorded on April 23, 1985 in Reel 1831, Page 467, Official Records of said County; thence along said northerly end of said 51 foot wide sanitary sewer 3) North 77° 52'36" West, 5.00f feet; thence along the westerly line of said 51 foot wide sanitary 4) South: 12° 07' 24" West, 25.12 feet; thence departing said! 51 foot strip crossing said land described in said deed recorded as Document Number 2020000064  easement sewer easement  5) North 77° 52'36" West, 3.46 feet; thence  Packet Pg. 284    Grant Deed of APN 223-061-0023  Easement #4 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  6) North 11°3 37'5 55" East, 40.71 feet; thence parallel to and 7.501 feet westerly oft the westerly line ofsaid 15 foot wide sanitary sewer easement described in the deed recorded in Book 321, Page 7) North 53° 33' 00" East, 425.07 feet; thence perpendicular to said 151 foot wide: sanitary sewer  21  easement  8) South 36° 27' 00" East, 7.501 feet to the POINT OF BEGINNING.  Containing an area of 3,390: square feet, more or less. This legal description was prepared by: DRAFT  Lynn A. Kovach P.L.S.5321 Dated: December17,2021  Packet Pg. 285    h  301 epi ,00'09 MON!  12-80-12 quewesDa SS Bupsix3  Packet Pg. 286    Grant Deed of APN 223-061-023  Easement #6 - Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of thei tract of land described ini the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filed in' Volume 18 of Surveys at Page 87, Official Records of said County, being particularly described Astrip ofl land, 151 feet in width, lying 7.51 feet on either side of thei following described centerline: COMMENCING at the northeasterly corner of Lot 4 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot is shown on the mapi recorded in Volume 23 of Cities and Towns at Page 19, Official Records ofs said County; thence alongt the common line between said Tract 3B and said Lot 4, North 52° 26'3 39" East, 31.12 feet toi the POINT OF BEGINNING; thence 1) North 38° 28' 11" West, 887.87 feeti to the southerly line of an existing 51 foot wide sanitary sewer easement described in the deed recorded in Reel 1831 at Page 456, Official Records of  as follows:  said County andi the end of said strip. Containing an area of 0.31 acres, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: August 1, 2024  Packet Pg. 287    Packet Pg. 288    Grant Deed of APN 223-061-023  Easement #7- Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3A and 3B of the Rancho Rincon de lal Punta dell Monte, City of Gonzales, Monterey County, State of California, being a portion oft thei tract ofl land described in the deed recorded. January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the mapi filed in' Volume 18 of Surveys at Page 87, Official Records ofs said County, being particularly Astrip ofl land 151 feeti in width lying 7.51 feet on either side oft the described centerline: COMMENCING ati the most southeasterly corner of said tract of land described in said Document Number 2020000064, said point also being the most northerly corner of Lot1 ofl Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot is shown ont the map recorded in' Volume 23 of Cities and Towns at Page 19, Official Records ofs said County; thence along the northwesterly line of said Lot 1, South! 52° 29'00" West, 14.63 feet tot thel POINT OF BEGINNING; thence departing said  described as follows:  northwesterly line  1) North 41° 51'22" West, 238.60 feet; thence  2) North 48° 47'1 15" East, 10.581 feet more or less to a point on1 the easterly line of said tract of land described in said Document Number 2020000064 and the end ofs said strip.  Containing an area of 3,737 square feet, more or less.  This legal description was prepared by:  Lynn A. Kovach P.L.S. .5321 Dated: August1,2024  Packet Pg. 289    e - o 3  S  Packet Pg. 290    Grant Deed of APN 223-061-023  Easement #8 Sanitary Sewer Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the tract of land described ini the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown on the map filed in' Volume 36 of Surveys at Page 69, Official Records ofs said County, being particularly described Astrip ofl land 151 feeti in width lying 7.51 feet on either side oft the described centerline: COMMENCING ati the most southwesterly corner ofs said land: shown on said mapi filed in Volume 36 of Surveys at Page 69; thence along the southerly line ofs said land South 87" 04' 47" East, 99.66 feet; thence South. 20° 14'5 51" East, 11.301 feet to the POINT OF BEGINNING; thence departing said 1) South 87" 04'31" East, 169.21 feet to a point on the southerly line of said land shown on said  as follows:  southerly line  map andi the end of said: strip.  Containing an area of2,538 square feet, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: August 5, 2024  Packet Pg. 291    Packet Pg. 292    Grant Deed of APN 223-061-023  Easement #9 - Temporary Construction Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGALI DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of thet tract of land described in the deed recorded January 2, 2020 as Document Number 2020000064, said tract of land also being shown ont the map filed in' Volume 36 of Surveys at Page 69, Official Records ofs said County, being particularly described BEGINNING at the most southwesterly corner ofs said land shown on: said map filed in' Volume 36 of  as follows:  Surveys at Page 69; thence along the westerly line of said land  1) N8° 25' 31"E, 14.681 feet; thence departing said westerly line  2) $87° 04'31"E, 292.01 feet; thence 3) N69° 40' 37"E, 373.941 feet; thence 4) N11°37'5 55"E, 854.751 feet; thence 5) N53° 50'4 42"E, 1,009.58 feet; thence 6) N53° 32' 26"E, 999.93 feet; thence 7) N53°33'2 28"E, 1,000.09 feet; thence 8) N53°5 54'5 57"E, 1,000.08 feet; thence 9) N53° 56' 22"E, 906.91 feet; thence 10) N53° 28' 33"E, 999.941 feet; thence 11) N53° 39' 19"E, 842.301 feet; thence 12) N52° 54' 57"E, 170.05 feet; thence  13) S38° 28' 11"E, 921.461 feet to a point on1 the northeasterly line ofl Lot 4 as said Lot is shown on Volume 23 of Cities and Towns at Page 19; thence along said northeasterly line 14) $52*27'02"W, 50.01 feet; thence departing said northeasterly line of said Lot4 4  15) N38° 28' 11"W, 871.851 feet; thence 16) $52°5 54'5 57"W, 121.561 feet; thence  17) S53° 39' 19"W, 570.371 feet to a point on the southeasterly line of said land described in said  Document Number 2020000064; thence along said southeasterly line  18) N38° 35' 43"W, 17.441 feet; thence 19) $53°35' 51"W, 3,937.701 feet; thence 20) N40° 24' 14"W, 10.00 feet; thence 21) S53*34'26'W, 2,256.28 feet; thence  Packet Pg. 293    Grant Deed of APN 223-061-023  Easement #9 -Temporary Construction Easement D'Arrigo Bros. Co. of California to City of Gonzales  22) $12° 08' 50"W, 835.041 feet; thence  23) S69°40'3 37"W, 473.08 feet; thence departing said southeasterly line  24) N87° 04'31"W, 100.31 feet to a point on the southerly line of said land described in said  Document Number 2020000064; thence 25) N20"14'51'W, 38.501 feet; thence  26) N87° 04' 47"W, 99.661 feet, tot the POINT OF BEGINNING  Containing an area of7 7.4 acres, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: August5,2024  Packet Pg. 294    0  )  @  Packet Pg. 295    Grant Deed of APN 223-061-023  Easement #10 - Temporary Construction Easement D'Arrigo Bros. Co. of California to City of Gonzales  LEGAL DESCRIPTION  Situate within Tract 3B of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the tract of land described in the deed recorded January2, 2020a as Document Number 2020000064, said tract ofl land also being shown ont the mapi filed in Volume 18of Surveys at Page 87, Official Records ofs said County, being particularly described as follows: BEGINNING at the most southeasterly corner of said tract ofl land described in said Document Number 2020000064, said point also being the most northerly corner of Lot 1 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said loti is shown on the map recorded in Volume 23 of Cities and Towns at Page 19, Official Records of said County; thence along the northwesterly line ofs said 1) South! 52°27' 02"West, 39.70 feet; thence departing said northwesterly line crossing said tract  Lot1  of land described in Document Number 2020000064 2) North 41'51'22"West, 262.001 feet; thence 3) North 48°4 47'15"East, 35.111 feet; thence  4) South 42°4 49'3 30"East, 264.62 feet, to the POINT OFE BEGINNING  Containing an area of 9,829. square feet, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: August 5,2024  Packet Pg. 296    e  35  Packet Pg. 297    PIINI REALTY  QUALIFICATIONS OF THE APPRAISER  John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and: since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of  Monterey, San Benito, Santa Cruz and Santa Clara Counties.  Academic Background Formal Education Appraisal Education  University of California, Los Angeles, BA degree -1974  Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements. Since 1983, John Piini has completed a number of appraisal courses and seminars and is current  with Appraisal Institute's continuing education requirement.  Professional Experience 1975-1983 1983-2008 2008- present  Associate appraiser with. Joe Piini, MAI  Part owner of Piini Realty, ai family owned and operated real estate firm involved in appraising, brokerage, development and management. Upon the retirement of Jim Piini, John Piini became the sole owner of Piini Realty, which is a full service real estate firm providing appraisal, brokerage and property management services. In 2008, John Piini obtained his California Brokers license and his real estate activity focuses primarily on appraising and marketing agricultural properties.  Appraisal Assignments financial lending.  The majority of assignments pertain toi the valuation of agricultural and acreage properties fora a variety of purposes including estate planning, conservation easements, trust management and  Valuations of commercial, industrial special-use, residential and  development properties are also performed.  Professional affiliation and memberships  MAI - Member oft the Appraisal Institute - Certification Number 6708 California Certified General Real Estate Appraiser- - OREA #/ AG005214 California Licensed Real Estate Broker- - DRE # 00542238  Monterey County Board of Realtors  263 Lincoln Ave., Salinas, CA93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 298    QUALIFICATONS OF THE APPRAISER  Greg Piini, MAI has been engaged in the real estate business since 2000. Over this period of time, Greg  has focused on both real estate appraisal and property management.  Academic Background Formal Education  Hillsdale College, Hillsdale, Michigan. Bachelor of Arts in Finance, 2000  Appraisal Education  Appraisal Institute - 2001 through current. Beginning in 2001, Greg began taking appraisal classes with the Appraisal Institute and has continued taking classes and seminars over the years. Greg is current with the continuing education requirements of the BREA and the  Appraisal Institute. Professional Experience Piini Realty, Inc. 2000-2019  During the first nine years, Greg worked as an associate appraiser with John W. Piini, MAI. In 2009, Greg obtained his Certified General Real Estate Appraisal License, and in 2016, he completed the requirements to obtain the MAI designation oft the Appraisal Institute. In 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage,  2019- Current  development and management.  Appraisal Assignments  The majority of appraisal assignments involve acreage, agricultural, commercial and industrial properties located in Monterey, Santa Cruz, San Benito and Santa Clara Counties. The appraisals are prepared for a variety of clients that range from attorneys, land trusts, government agencies, and property owners for a variety of purposes that include estate planning, conservation easements, trust management, andi financial lending.  Professional affiliation and memberships Appraisal Institute  California Certified General Real Estate Appraiser- - BREA #/ AG044270 California Licensed Real Estate Salesperson- - BRE # 01294279  Monterey County Board of Realtors  Packet Pg. 299    WESTPHAL RANCH  Grant of Easement - Sanitary Sewer Easement Grant of Temporary. Easement Appraisal Report - Hibino/Westphal Ranch  Packet Pg. 300    Recording requested by: CITY OF GONZALES 147 Fourth Street Gonzales, CA 93926 And when recorded mail copy to: CITY OF GONZALES Public Works Department PO Box 647 Gonzales, CA93926 Nol Recording fee - Government Code $ 27383  Space above this line for Recorder's use  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by Westphal Ranch LLC, a California Limited Liability Company  ("Grantor"), for the benefit of the City of Gonzales, an incorporated City ("Grantee"), with  reference to the following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as. APN No. APN B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement Purpose") aportion ofthel Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the  223-011-059 in the County of Monterey, State ofCalifornia.  site plan attached hereto as Exhibit B.  NOW,THEREFORE, in consideration ofthe foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, Grantor hereby declares as follows:  1. Easement. Grantor hereby grants to Grantee a permanent non-exclusive easement tot the Easement Area for the Easement Purpose; and for the further purpose ofi ingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with ai right ofway upon, over, under, through and across the Property to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill or other structures over the hereinafter described Easement  Area.  Packet Pg. 301    2. Compensation, Grantor acknowledges receipt of compensation from Grantee for the Easement in accordance with the value of the property per the Appraisal Report updated  October 3, 2024. 3.  Maintenance. Grantor hereby grants to Grantee a perpetual non-exclusive  easement for maintenance and repair purposes over the Easement Area and such portions oft the Property as arei reasonably necessary for suchi maintenance. and repair. Grantee shall bei responsible  for all costs associated with the Grantee's use oft the Easement.  4. No Gift or Dedication. Nothing contained in this Easement Agreement shall be deemed to be a gift or dedication of any portion oft the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted ini this Easement Agreement shall be strictly limited to and for the purposes herein expressed with respect to private property solely for thel benefit of the parties and their respective  tenants, invitees and licensees.  5.  Mortgagee Protection. No breach or violation oft this Easement Agreement or of  the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing a loan made in good faith and for value with respect to any portion of the Property, but all of the provisions of this Easement Agreement shall be binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to the Property or any portion thereof, by foreciosure, trustee'ss sale, deed  inl lieu ofi foreclosure, or otherwise.  6.  Notice of Material Issue. Grantor shall promptly notify Grantee in writing of any 7. Governing Law. This Easement Agreement shall be governed by and construed 8. Successors and Assigns: Covenants Running with the Land. This Easement Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. of the  material issue or fact that may affect the Easement. in accordance with the laws oft the State ofCalifornia.  California Civil Code.  9. Severability. Ifany provision oft this Easement Agreement is prohibited or held to be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability of the other provisions shall not be affected ori impaired thereby and (b) the parties hereto shall endeavori in good faithi negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or unenforceable  provisions.  10. Remedies. In the event of any breach or threatened breach of any provision oft this Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to enjoin suchl breach or1 threatened breach and1 torecoverdamagesi fora any such breach. Theremedies  2  Packet Pg. 302    permitted or available pursuant to thej provisions oft this Easement Agreement shall be cumulative  and in addition to any rights or remedies available at law or in equity.  11. Indemnification.  (a) Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities,judgments and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising from the willful or negligent acts or omissions ofa Grantor Party. affiliates, contractors, employees and agents (collectively, "Grantee Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly ori indirectly from or related to Grantor's exercise ofa any rights retained by Grantor under this Easement Agreement or arising from the willful or negligent acts or omissions ofa a Grantor Party, provided that Grantor shall not be required to indemnity or hold Granteel harmless from and against any loss, claim, demand, costs, expense, lien, fine, penalty, liability,judgment or damages arising from the willful or negligent acts or omissions ofa Grantee  (b) Grantor shall indemnify, defend and hold Grantee, and its officers,  Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each ofwhich shall be deemed an original, but all ofwhich when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages 13. Cost of Enforcement. Ifany legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofi its costs of suit,  executed by other parties,to this Easement Agreement attached thereto.  including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 303    INV WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written. Grantor: By: Name: Title:  AI notary public or other officer completing this certificate verifies only thei identity oft thei individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.  STATE OF CALIFORNIA COUNTY OF On_  ) SS.  2024 before me,  Notary Public,  personally appeared  who proved to me on the basis of  satisfactory evidence tol be the person(s) whose name(s)i is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the  upon behalf ofwhich the person(s) acted, executed the: instrument.  entity  Icertify under PENALTY OF PERJURY under the laws oft the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 304    INV WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: CityofGonzales  By:  Name: Carmen Gil Title:  City Manager  Ar notary public or other officer completing this certificate verifies only the identity oft thei individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTYOF On personally appeared  ) SS.  2024 before me,  Notary Public,  who proved to me on the basis of satisfactory evidence  tobe the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the  person(s) acted, executed the instrument. that the foregoing paragraph is true and correct.  Icertify under PENALTY OF PERJURY under thel laws oft the State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 305    EXHIBIT A  Legal Description of the Easement Area  A-1  Packet Pg. 306    Grant Deed of Easement #1 - Sanitary Sewer Easement APN 223-011-059 Hibino to City of Gonzales LEGAL DESCRIPTION  Situate within Tract 3A of the Rancho Rincon de la Punta dell Monte, City of Gonzales, Monterey County, State of California, beinga a portion of the land described in the deed recorded April 4, 2020 in Document Number 2020019826, Official Records of said County, being more particularly described as follows: BEGINNING at the most northerly corner of said land described in Document Number 2020019826; 1) South 38° 35' 06" East, 4.041 feet; thence departing said northeasterly line and crossing said land  thence along the northeasterly line of said land  2) South! 53°36'29"1 West, 181.30 feet; thence 3) South 53° 31'35" West, 599.00 feet; thence 4) South 53° 32'3 35" West, 601.85 feet; thence 5) South 53° 37': 15" West, 45.321 feet; thence thence along said northwesterly line  5) North 38° 07'31" West, 4.701 feet more or less to a point ont the northwesterly line of said land;  7) North 53° 34'25" East, 1427.45 feet to the POINT OF BEGINNING.  Containing an area of 6,192 square feet, more or less.  This legal description was prepared by: dgakp Lynn A. Kovach P.L.S.5321 Dated: December17,2021  3 6 S OF CAL  G  A-2  Packet Pg. 307    EXHIBIT B Site Plan of Easement Area  B-1  Packet Pg. 308    2-8  jaouod OUIq!H buuaqunoua quawasDa SSMaN L# quewesp3  joouDd ouIq!H bupaqunoue 301 MON 2# quewesoy  5  301 apim .00'09 MON; S  LZ-80-12 quawesDa SS bupsixg  Packet Pg. 309    GRANT OF TEMPORARY EASEMENT  THIS GRANT OF TEMPORARY EASEMENT (this Temporary  Easement") is made as of  2024, by Westphal Ranch LLC. a California  Limited Liability Company ("Grantor"), for the benefit of the City of Gonzales, an  incorporated City ("Grantee"), with reference to the followingrecitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as APN No. B. Grantee has requested a temporary easement to perform the activity, more particularly described in Exhibit A (the Improvements"), attached hereto and incorporated  APN223-011-059, ini the County of Monterey, State ofCaliforia.  herein by reference. C.  Grantee has requested temporary access to a portion of the Property more  particularly described on Exhibit B attached hereto (the Temporary Easement Area"), and  depicted on1 the site plan attached hereto as Exhibit C.  NOW, THEREFORE, in consideration of the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, thei receipt and sufficiency  ofwhich are hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a temporary easement to the  Temporary Easement Area fort the Improvements; and fort thei further purpose ofingress, egress andj passage across with all thei necessary: materials, tools, supplies, and other equipment related to the Improvements, together with a right of way upon, over, under, through and across the  Property to access the Temporary Easement Area (the Easement").  2.  Term. The term of this Temporary Easement shall commence when  performance of the Improvements begins, no earlier than November 1. 2024, and shall automatically terminate upon completion of the Improvements or no later than May 1. 2025. Grantee shall provide Grantor at least twenty-four (24) hours' notice prior to performance of any Improvements. Grantor shall grant no rights inconsistent with the reasonable exercise by  Grantee ofits rights under this Temporary Easement.  3. Cost. TheGrantee shalll beresponsible forall costs and expenses associated with performance of the Improvements, except for those cost or expenses resulting from the negligence or willful misconduct ofthe Grantor. Seel Exhibit A forother exceptions, ifany. Temporary Easement in accordance with the Appraisal Report, updated October 3, 2024. Value of the Temporary Easement was predicated on an appropriate land rent for the Temporary Easement area and duration. Total compensation for the Temporary Easement is $2,261.00, two thousand, two hundred and sixty-one dollars and zero cents.  4.  Compensation. The Grantee shall compensate the Grantor for the use of the  5.  Performance of the Improvements. Time is oft the essence with respect to the  performance of the improvements, and to the extent reasonably feasible, the Grantee shall  diligently pursue completion oft the Improvements.  Packet Pg. 310    6. Safety. Grantee shall erect and maintain on the Property, as necessary, reasonable safeguards for safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and  notifying owners and users of adjacent sites and utilities.  7.  Revocable Licenses and Termination. This Temporary Easement shall be  revocable by the Grantor only if the Grantee fails to comply with any provision herein. Revocation may not occur until Grantor has provided the Grantee with written notice of the alleged breach and at least ten (10) days to cure. During said 10-day period to cure, the Parties shall meet and confer regarding the alleged breach and potential cure. Notice to the Grantee of any alleged breach shall be sent to Patrick Dobbins. Public Works Director. 147 4th Street, Gonzales, CA. If Grantor terminates this Temporary Easement at any time after performance ofthe Improvements has commenced, but prior to the completion ofs such Improvements, ori if Grantor otherwise prohibits or impedes Grantee right to enter the Property hereunder, the Grantee shall not be liable for any actions, claims, suits, penalties, obligations, liabilities, or damages to the Property, environmental claims or injuries toj persons, which may be caused by Grantee's performance ofthe Improvements pursuant to this Temporary Easement or arising out of or in connection with performance of the Improvements, whether such activities or performance thereofis by Grantee or anyone directly orindirectly employed or under contract with Grantee, and whether such damage or claim shall accrue or be discovered before or after  the termination oft this Temporary Easement.  8.  Restoration of the Property. As part of the Improvements to the Property,  Granteeshall, atitsown costa and expense, abehypywashsNy similarcondition in which: it was prior to Grantee's performance ofthel Improvements. In the event that Grantor terminates this Temporary Easement fora anyreason othert than aGrantee default and at any time after performance of the Improvements has commenced, butj prior to the completion ofsuch Improvements, bOnsahatnwbhaligad torestorethePioperty as described herein. no termination of this Temporary Easement shall release the parties from any liability or obligation hereunder resulting from any acts. omissions or events happening prior to the  9.  Continuing Liability. ExcpiasolhemwiestfonthinthiTmporay Easement,  termination oft this Temporary Easement and restoration ofthel Property.  10. Counterparts. This Temporary Easement may be executed in one or more counterparts, each ofwhich shall bec deemed an original but allofwhich togethershall constitute IN WITNESS WHEREOF, the Parties hereto have executed this' Temporary Easement on  one and the sameinstrument. the date first written above. CITY OF By:  OWNER By: Name  Carmen Gill, City Manager  Packet Pg. 311    EXHIBIT. A Description of Work  The scope of work is as follows:  Installation, testing and commissioning ofnew 12-inch/24-inch PVC below grade gravity sewer pipelines, manholes, and appurtenances to support the City's upcoming  Industrial Wastewater Treatment Program.  Not included: 1.  Not Applicable  A-1  Packet Pg. 312    EXHIBITI B  Legal Description of the Easement Area  B-1  Packet Pg. 313    Grant Deed of APN 223-011-059 Hibino to City of Gonzales LEGAL DESCRIPTION  Easement #2- Temporary Construction Easement Area  Situate within Tract 3A of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded April 4, 2020 in Document Number 2020019826, Official Records of said County, being more  particularly described as follows:  BEGINNING at the most northerly corner of said land described in Document Number 1) South 38° 37' 09" East, 15.60 feet; thence departing said northeasterly line crossing  2020019826; thence along the northeasterly line of said land  said land  2) South 53° 39' 19" West, 284.93 feet; thence 3) South 53° 28'33"V West, 1000.06 feet; thence said land; thence along said southwesterly line said land; thence along said northwesterly line  4) South 53° 56' 22" West, 142.59 feet more or less to a point on the southwesterly line of 5) North 38° 07' 31"West, 15.98 feet more or less to a point on the northwesterly line of  6) North 53° 34' 25"East, 1427.45 feet to the POINT OF BEGINNING.  Containing an area of 0.52 acres, more or less. This legal description was prepared by:  LAND A. a SONL  dg-afpnt Lynn A. Kovach P.L.S. 5321 Dated: December 17, 2021  F CAL  B-2  Packet Pg. 314    EXHIBITC Site Plan of] Easement Area  C-1  Packet Pg. 315    2-0  jaoupd OUIqIH bupaqunoue luawespe SS_MeN # quewesp3  lesDd OuIS!H buaqwnoue 301 MON 2# quawesp3  5  6  301 epim .00'09 MaN S  LZ-80-12 quawasDa SS bupsix3  0  Packet Pg. 316    APPRAISALOF:  CITYOF GONZALES/HIBINO RANCH PARTIAL TAKE-GONZALES RIVER ROAD GONZALES, MONTEREY COUNTY APNS223-011-059  REQUESTED By:  Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  APPRAISALASOF:  May 8, 2024  APPRAISED By:  John' W. Piini, MAI Greg Piini, MAI 263 Lincoln Avenue Salinas, CA 93901  Packet Pg. 317    PIINI REALTY  October 14, 2024 Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  Re: Appraisal Report - Hibino/Westphal Ranch LLC Gonzales, Monterey County, California  Dear Mr. Dobbins:  Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as to the fair market value of one permanent Sanitary Sewer Easement (SSE) and one Temporary Construction Easement (TCE)onap portion of the Hibinol Ranch, located tot the west of Gonzales, Monterey County, California. The Hibino Ranch is owned by Westphal Ranch LLC and is identified as Assessor's These easements are being purchased by the City of Gonzales for an agricultural-industral wastewater conveyance pipeline that is part of Gonzales' Industrial Wastewater Recycling Facility (IWRF) project. The SSE runs along the northwest boundary, varying in width from 4.0t to 4.7t feet and encumbering approximately 6,192t square feet. The TCE is a temporary easement that also runs alongt the northwest boundary, varying in width from 15.6t to 16.0t feet and encumbering approximately 0.52+ acres, including the lands within the SSE. The TCE encumbers the land for a period of six months, commencing Tot farmi the property outside the TCE, a newi farm road will likely be necessary: along the south side of the TCE during the: six month construction period. Afterward, the land area within the TCE andi this farm road willl be too compacted tol bei farmed. To restoret this landi to afarming use, additionaltime will be required to rip, till and prepare these soils. An additional six months are added to the TCE and the land adjacent Based on thei inspection oft the property and thei investigations and analyses undertaken, we havei formed the opinion that as of May 8, 2024, ands subject tot the assumptions and limiting conditions seti forth int this  Parcel Number (APN)223-011-059. The ranch has ag gross area of 89.87t acres.  on November 1, 2024.  tot the TCE to account fort this loss.  report, the value conclusions are as follows:  263 Lincoln Ave., Salinas, CAS 93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 318    Mr. Patrick Dobbins  October. 14, 2024  Re: Appraisal Report - Hibino/Westphal Ranch LLC Fair market valuec oft the part taken as partoft thev whole  Pagei i $4,975  Damages & special benefits Damages Less: Special benefits Subtotal Total value oft the take  $0 $0  $0 $2,261 $7,236  Value oft the TCE, includingcompensation for temporaryf farmr roads  The appraisal report that follows consists of 46 pages ands sets forthi thei identification of the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results of thei investigations and analyses, andi the reasoning leading to the value conclusions.  Respectfullys submitted, John W. Piini, MAI ER  GregPlini, MAI  Certified General Real Estate Appraiser State of California, BREAI No. AG005214  Certified General Real Estate Appraiser State of California, BREA No. AG044270  Packet Pg. 319    TABLE OF CONTENTS  Transmittal Letter. Table of Contents. Introduction.. Identification Extraordinary Assumption. Purpose of the Appraisal. Title. Property History Property Rights Appraised.. Client oft the Appraisal. Intended Users. Intended Use of the Appraisal.. Effective Date of the Appraisal.. Date of Report.. Report Format. Exposure Time. Land Acreage Definitions. Scope of Work. Regional Description. Regional Map.. Location Map. Monterey County. Gonzales Property Description Aerial Photograph. Assessor's Parcel Map. Subject Photograph. Location.  ili  10 10 10 11 14 15 15 15 16 16 Page iii  Appraisal Report -H Hibino/Westpha Ranch LLC  Packet Pg. 320    Land Area.. Access. Irrigation Water. Building Improvements Hazards. Assessed Valuation & Taxes Land Use Policies Highest & Best Use. Valuation Comments  16 16 17 17 17 18 18 19 20 36 37 38 38 38 40 41 43  Fair Market Value of the property before the take.. Fair Market Value of the Part Taken.. Fair Market Value oft the Remainder as Part of the Whole.. Fair Market Value of the Remainder Before Considering Special Benefits. Fair Market Value of the Remainder Considering. Special Benefits.. Fair Market Value of the Temporary Construction Easement.  Compensation Summary. Certification.. Limiting Conditions Addendum  Legal Description and Maps oft the Permanent and Temporary Easements  Qualificatons of the Appraisers  Appraisal Report -Hibino/Westpha: Ranch LLC  Page iv  Packet Pg. 321    INTRODUCTION  IDENTIFICATION  This appraisal involves a partial-take valuation of an agricultural farm property referred to as the Hibino Ranch. The Hibino Ranch is owned by Westphal Ranch LLC and is located to the west of Gonzales, Monterey County, California. The ranch is 89.87+ acres and is identified as Monterey County Assessor The partial-take consists of one Sanitary Sewer Easement (SSE) that encumbers 6,192t square feet, and one Temporary Construction Easement (TCE) that encumbers 0.52t acres, including the land within the SSE, for a period of six months, commencing November 1, 2024 and continuing through April 30, 2025. The public agency involved in this taking is the City of Gonzales as part of a project referred to as the  Parcel Number (APN)223-011-059.  Gonzales Industrial Wastewater Recycling Facility (IWRF)p project.  EXTRAORDINARY, ASSUMPTION Irrigation Improvements  Irrigation wateri fort the Hibino Ranch is provided from underground groundwater wells and underground irrigation pipelines. This appraisal is predicated upon the extraordinary assumption that the proposed easements and/orthe proposed construction project do not disturbany oft thei irrigation system andi ift the construction oft the proposed conveyance line affects any oft thei irrigations system, the construction project would repair and replace the affected irrigation improvements as a cost-to-cure item.  Depth of Proposed Conveyance Line  This appraisal is predicated oni the extraordinary assumption that the proposed conveyance line willl be at a depth that is sufficient to allow continued deep tilling/ripping of the soil above, and that its location  and/or depth will not interfere with the farming operation on the Hibino Ranch.  Environmental Hazards  An environmental assessment report was not provided and we are not qualified to make such a report and/or environmental assessment. Without the benefit of an environmental assessment or hazardous material assessment report this appraisal is predicated on the extraordinary assumption that there are no environmental conditions that adversely affect the value of the property. Therefore, this is an  "unimpaired valuation."  Appraisal Report - Hibino/Westpha Ranch LLC  Page 5  Packet Pg. 322    Extraordinary, Assumption Defined  An ssignment-specfic assumption as of the effective date regarding uncertain information used inc an analysis which, iffound to bej false, could alter the appraiser's opinions or conclusions. 1  PURPOSE OF THE APPRAISAL  Thej purpose oft the appraisal is to estimate the "fair market value" ofthe real property in accordance with California eminent domain civil procedure codes. As per California law the appraisal will address the  following:  1. the fair market value of the property before thei take; 2. thei fair market value oft the part taken; 3. the fair market value oft the remainder as part of the whole; 4. the fair market value of the remainder before considering special benefits;and 5. thei fair market value oft the remainder considering special benefits. For the purpose oft this appraisal, fair market value is defined as follows:  Fair Market Value Defined  Thej fair market value oft the property taken is the highest price on the date ofvaluation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity. for so doing, nor obliged to sell, andak buyer, being ready, willing, and able to buy but under no particular necessity for sO doing, each dealing with the other withj fullknowledge ofallt the uses and purposes  for which the property is reasonably adaptable and available.2  TITLE  According to the Monterey County Assessor's Office, titlei is vested as follows:  Westphal RanchLLC  PROPERTYHISTORY  There have been no sales of the subject property within the past three years. Recently, title to the property transferred from various members of the Hibino family into the Westphal Ranch LLC; however, this was only an internal change of title. The ranch is not currently offered on the open market and we are not aware of any purchase option and/or agreements affecting the subject property. 1 Uniform Standards of Professional Appraisal Practice (USPAP) - 2018-2019 Edition. (The Appraisal Foundation, 2 California Code of Civil Procedure - CCP $1263.320 (Amended by Stats. 1992, Ch. 7, Sec. 2. Effective January 1,  2018).p.4. 1993).  Appraisal eport-Hbino/Westphol Ranch LLC  Page 6  Packet Pg. 323    PROPERTY RIGHTS APPRAISED Fee Simple Estate Defined  The property rights appraised is thei fee: simple estate.  Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police  power, and escheat. 3  CLIENT OF1 THE APPRAISAL INTENDEDUSERS  The client ofi this appraisal is the City of Gonzales.  The intended users are the client and the fee owner oft the property. The appraisers are not responsible for any unauthorized use oft this report and are not responsible to any third-party users.  INTENDED USE OF THE APPRAISAL  The intended use of this appraisal is for the client's use pertaining to the purchase of easements on the  subject property as part of the IWRF project. EFFECTIVE DATE OF THE APPRAISAL  This appraisal assignment represents a current appraisal in which the effective date of the appraisal and  the valuation conclusion apply as of May 8, 2024.  DATE OF REPORT REPORT FORMAT  This appraisal assignment was conducted from May to August of 2024.  The report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated  above. EXPOSURE TIME  Thet term "exposure time" is defined as  Dictionary of Real Estate. Appraisal- - 6th Edition. Appraisal Institute, 2015, p. 90.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 7  Packet Pg. 324    The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical Iconsummation ofas sale at market value on the effective date  ofthe appraisal.*  Fori the past several years, a strong effective demand exists for irrigated farmland and ranch lands located within the Salinas Valley. Turnover is limited and much of the farmland that sells is sold without ever being offered on the open market. Those farms that are offered ont the open market are generally under contract within 30 days and have a 90-day due diligence period. Farm properties that are on the market for more than six months are typically overpriced or have certain physical characteristics that limit their The Hibino Ranch is a prime agricultural farm that would command strong demand if offered ont the open market. Assuming the ranch was offered near market value, an exposure time of 3 to 6 months is  appeal and increase their risk of ownership.  considered reasonable. and applied in this analysis.  LAND ACREAGE DEFINITIONS Gross Acreage  Several acreage classifications are used within this appraisal report and are defined as follows:  The gross area is the total land area of the property as legally described, or as indicated by the parcel maps. The gross acreage. for this assignment is derived from the Monterey County Assessor Parcel Maps,  which are included in this report. Non-Usable Farm Acreage Usable Farm Acreage  The non-usable farm acreage is the land that does not provide a utility toi the property.  The usable farming acreage is thet totala acreage that provides au utilityt tot the property and includes the net  crop acreage, and internal roads and yard areas that service the farmable acreage.  Net Crop Acreage  The net crop acreage is the net planted acreage, excluding the service acreage of roads, reservoirs, yard areas, and any non-usable areas. Also referred to as the farmable acreage or green-to-green area, the net crop acreage isi the area growers utilize for measuring crop production and growing costs.  4lbid.p p.83.  Appraisal epont-Hbino/Westphol Ranch LLC  Page 8  Packet Pg. 325    Leased Acreage SCOPE OF WORK  The leased acreage is the acreage statedi in the lease thati is agreed upon between the lessor and lessee. As part of this assignment, we inspected the property on various occasions between May 8, 2024, and August 12, 2024. The inspections were from the road frontage and internal ranch roads with the scope of observing the layout and general characteristics of the property. In addition to our inspection, we reviewed parcel maps, flood maps, aerial photographs and zoning maps of the property. The gross land area oft the propertyi is obtained from the legal descriptioni in ag grant deed recorded on. July 3, 2024 (Document #2024023181) with the County of Monterey. The land areas within the proposed takes are obtained from the draft legal descriptions and take exhibits prepared by Polaris Land Surveying, The valuation oft the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records, Multiple Listing Service (MLS) data, on-line subscription: services such as CoStarand LoopNet, real The results of the investigations and the analyses conducted are presented in this appraisal report, and  copies of which are included ini the addendum of this report.  estate appraisers, and brokers.  were prepared by. John Piini, MAI, and Greg Piini, MAI.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 9  Packet Pg. 326    REGIONAL DESCRIPTION  REGIONAL MAP  Chualar  Gree  Gocgletarth  LOCATIONMAP  Gonzales City Limits Boundary Subject Property Proposed Conveyance! Line Futurel IndustrialV Wastewater Recycling! Facility  Gonzales  Appraisal Report-Mbno/Westphal Ranch LLC  Page 10  Packet Pg. 327    MONTEREY COUNTY  Monterey County is oriented in a north to south direction parallel to the Pacific Ocean. It is bounded on ther north by Santa Cruz County, oni the south by San Luis Obispo County, on the east by San Benito, Kings, Thel largest ofi the central coast counties, Monterey County has approximately 100 miles of coastlinea along the Pacific Ocean and averages 30 miles in width. The county contains 3,324t square miles or 2,127,360t About 439,000 people currently reside inl Monterey County as of the 2020Census, whichisa5 5.7% increase from the 2010 Census estimate of about 415,000. The majority of the county's population is located on the Monterey Peninsula and in the greater Salinas area. Over the past several decades, Salinas and the smaller Salinas Valley towns experienced the majority of the county's growth, as the price of land and housing is relatively affordable compared tot the Monterey Peninsula and the neighboring Santa Claraa and Santa Cruz Counties. During this same period, the population on the Monterey Peninsula remained relatively stable due to a limited: supply of land that is zoned and suitable for development. The physical and economic characteristics of the county are divided primarily between the Monterey Peninsula and Salinas Valley. The Monterey Peninsula communities of Pebble Beach, Carmel, Pacific Grove andl Monterey aret tourist destinations fort the northwesterly portion. Tothe: south oft thel Monterey Peninsula is the world-renowned Big Sur Coast. Ont the eastern side of the county lies the Salinas Valley,  and Fresno Counties and on the west is the Pacific Ocean.  acres.  one of the chief vegetable-producing regions in the United States.  Salinas Valley  The Salinas' Valley is at fertile agricultural region bounded to the east by the Gabilan Mountain Range and tot the west by the Santal Lucia Mountain Range. The valley begins at San Ardo and widens and stretches This valley is one of they premier fresh vegetable growing regions int the country and a majority of thes salad greens consumed in the United States are grown here. Strawberries, head lettuce, leaf lettuce, broccoli, celery, artichokes, and a variety of other vegetable crops provide Monterey County with approximately $4.6 billion in gross sales. Due to the intensity and the variety of crops grown, the Salinas Valley is Within the 100-mile: stretch oft the Salinas Valley are individual farming districts, distinguished not only by location, but by farming characteristics associated with soil, climate and/or water. East-to-west, soil quality provides the distinction, as thes soils ont the valley floor are, forthe most part, fertile clay and loamy soils that are wells suited for growing ay variety of fresh vegetable crops. Along thei foothills of the Gabilan  approximately 100 miles toi thel Monterey Bay, near Castroville.  nicknamed America's! Salad Bowl."  Appraisal Report - Hibino/Westpha Ranch LLC  Page 11  Packet Pg. 328    Range (east side of the valley) and the Sierra de Salinas Range (west side) the soils are generally characterized by decomposed. granite (DG)s soils that formedi in alluvium from granitic and schistose rocks on alluvial fans and terraces. These soils are typically well-drained and suitable for growing a variety of crops; however, they generally require al higher degree of farm management as compared to the soils on North-to-south, climate plays a significant role as the north end of the valley has a cool coastal climate, whereas the south end of the valleyi is warmer and windier during the growing season. Due primarily to climate, agricultural rents are higher at the north end of the Salinas Valley as compared to the farmland int the central and southern portion of the valley. In recent years though, this gapi tightened due in part to an expansion of seed varieties, enhancement ini irrigation practices and the growth in the food service segment of the produce industry which has increased the demand for leafy green vegetables such as The economy of the Salinas Valley is centered around the agricultural industry, with irrigated row crops int the Salinas Valley, vineyards in the foothills of the Santa Lucia and Gabilan Ranges, and cattle grazing throughout the more mountainous areas of these Coastal Ranges. Agricultural crop values are significantly highert today than what existeda a decade ago; however, the past few agriculture seasonswere unusually challenging toi the local industry. The COVID-19 pandemic, a relatively new increase in lettuce losses from Impatiens Necrotic Spot Virus (INSV) and Pythium wilt, continued labor shortages, increasing food safety regulations, the uncertainty of future water regulations under California's Sustainable Groundwater Management Act (SGMA), and risingi inflation and interest rates havei impacted the produce  the valley floor.  spinach and leaf lettuces that have shorterg growing periods.  industry.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 12  Packet Pg. 329    Salinas Valley Water  Water for the Salinas Valley is derived mainly through groundwater wells penetrating 100 to 1,700 feet into the Salinas Valley Water Basin. The Salinas Valley Basin has a single common aquifer that is divided into six hydrologically interconnected subbasins known as the 180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Forebay Aquifer Subbasin, Langley Area Subbasin, and Monterey Subbasin. These basins are depicted ini the mapi to the right. These basins are recharged by the Salinas River and its tributaries, winter rain runoff from the bordering Gabilan and Sierra de Salinas Mountain ranges, and dam water discharges from the Nacimiento Reservoir (constructed 1955) and the San Antonio  EXPLANATION  Reservoir (constructed 1963). These natural and man-made sources feed the basins; however, it is not enough. The Salinas' Valley, especially at ther north end, extracts more watert than is replenished, resulting Over drafting of groundwater is not unique tot the Salinas' Valleyb but is occurringi throughout California. As aresult, California passed the Sustainable Groundwater Management Act (SGMA) in 2014, which requires California governments and water agencies to develop a Comprehensive Groundwater Sustainability Plan (GSP), which will establish the means and methods of achieving water sustainability, and then implement the GSP and achieve basin sustainability within 20 years after approval of the GSP. Int the! Salinas Valley, the Salinas' Valley Basin Groundwater Sustainability. Agency (SVBGSA) is aj joint powers authority that was Each subbasin's GSP was approved in 2022. The approved GSP's indicate that the northerly four basins (180/400 Foot Aquifer Subbasin, East Side Aquifer Subbasin, Langley Area Subbasin, and the Monterey Subbasin) arei in an overdraft condition, whilet the two southern basins (Forebay Aquifer and Upper' Valley  ins seawater intrusion and a shrinking watersupply: amongst the older shallow wells.  established: to fulfill the requirements of SGMA.  Aquifer) are in al balanced state.  The Hibino Ranch is within the 180/400 Foot Aquifer.  Appraisal Report - Hibino/Westphal Ranch LLC  Page 13  Packet Pg. 330    GONZALES  Gonzales is centrally located within the Salinas Valley and is approximately 15 miles south of the City of Salinas. The town has ap population of 8,439 peoples. Over the past several decades, thet town has grown as its proximityi to Salinas andi its lower relative price of housing has brought an influx of commuter-based  residents; however, the town remains an agricultural-based community.  SU.S. Census Bureau. 2022 Population Estimate Program (PEP). Appraisal Report-H Hibino/Westpha Ranch LLC  Page 14  Packet Pg. 331    PROPERTY DESCRIPTION  AERIAL PHOTOGRAPH  APN223-011-059  Google Earth ASSESSOR'SPARCEL MAP  TAX CODE AREA GONZALES BOOK 20  COUNTY OF MONTEREY ASSESSOR'S MAP BOOK 223 PAGEO1  Y RBS  03 HIGHWAY  STATE CHALA & Om IBA.  7NO. 101 jourp 02 Du , 0  e  DETALA_NO SCALE  ALINAS  Oa RO. 05" cpe SANONCL SEX  SCAE: 2000 MANCHO 18A2,18A5.1 18A4 KAY 18705 Page 15  USLe  Appraisal Report- - Hibino/Westpha Ranch LLC  Packet Pg. 332    SUBJECT PHOTOGRAPH  Northwest boundary of Hibino Ranch (right) and location of SSE and TCE.  LOCATION  The Hibino Ranch is located tot thev west of Gonzales, approximately 12% miles toi the south of Salinas and This location is within ani intensive farming district oft the Salinas' Valley thati is characterized byf fertile soils, an ample supply of water and a temperate coastal climate. Most of the farmland in this area is double  8% miles tot the north of Soledad.  cropped annually fora avariety of freshy vegetable crops.  The propertyi is surrounded byf farmland that used fori irrigated row crops.  LAND AREA acres.  The ranch is situated on an upper bench oft the Salinas' Valley with a gross and usable land area of 89.87t  Soils & Topography  The: soil is Cropley silty clay (CnA). This is a nearly level soil (01 to 2%: slopes) that is well drained and has a silty clay texture. The soil is a common soil found throughout the north end oft the Salinas Valley and is suitable for most of the row crops grown in the area. While the Monterey County Soil Survey identifies  the soil as Class 2, the local farming community regards it as a prime fertile soil.  ACCESS  Access is provided by Gonzales River Road.  Appraisal eport-Hbino/Westphol Ranch LLC  Page. 16  Packet Pg. 333    IRRIGATION WATER  Irrigation water for the Hibino Ranch is provided from underground groundwater wells and underground irrigation pipelines. Details about the irrigation system were not provided. This appraisal assumes the  water quality and quantity are: suitable for a continued agricultural use.  BUILDING IMPROVEMENTS  Building improvements are limited to one metal utility building located along the southwest boundary. The building measures approximately 2,800t square feet. The building is not affected by the proposed  takes and, therefore, is omitted from this analysis.  HAZARDS Flood Hazard  The ranch is identified on FEMA's Flood Insurance Rate Map (FIRM) panels 06053C0414H and 06053C0600H, both dated November 29, 2023. These panels indicate that the ranch is located within  Zone A, an area with a 1% annual chance flood (100-year flood).  Seismic Hazard Priolo Special Studies Zone. ASSESSED VALUATION &TAXES Assessed Valuation & Taxes  The property is located within a seismically active area of California but is not located within an Alquist-  The assessed valuation and real estate taxes for the 2023-2024 tax year are: summarized as follows:  Assessed Values improvement  2023-2024 Taxes Countywide &  APN 223-011-059 Total Averaget tax rate Average per usableacre Land Conservation Contract  Land Value $730,258 $730,258  Value Total Value Direct Charges Agency Taxes Total Taxes $0 $730,258 $5.886.66 $8,349.58 $14.236.24 $0 $730,258 $5,886.66 $8,349.58 $14,236.24  1.14%  $158  The ranch is not subject to a Land Conservation Contracts (LCC) with the County of Monterey, and the land value shown above is the Proposition 13 adjusted base year value. LCCs are often referred to as Williamson Act Contracts, which, in California, provide tax relief to agricultural property owners who contract with their county to restrict the use oft the property during the contract periodtoa agriculturaland  open space use.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page. 17  Packet Pg. 334    As standard LCCis a minimum of 10 years and underi this contract the assessed valuation is predicated on the agriculturali income value of the property. AFarmland Security Zone (FSZ) contract has a 20-yearterm and under this type of contract, the assessed valuation is based on 65% of the California Proposition 136 valuation or Williamson valuation, whicheveri is less. All land conservation contractsautomaticaly renew  annually for an additional year, unless either party files a "notice of non-renewal".  LAND USE POLICIES  The Hibino Ranch is located within an unincorporated area that is under the land use jurisdiction of Monterey County. The ranch is located within Gonzales' planning areal but is outside of the urban growth boundaryand outside ofthe City's permanent agricultural edge, which runs along the city limits boundary The ranchi is designated as "Agricultural" byt the Monterey County Generall Plan. Agricultural lands willi fall within thet three land use categories, and the Hibino Ranch is categorized: as Farmlands. The General Plan  int the vicinity oft the subject property and would preclude expansion toi the west.  defines Farmlands as follows:  Farmlands (F): Farmlands are typically 40-acre minimum sites, and allow a range of uses to conserve and enhance the use of the important farmlands in the County of Monterey while also providing opportunity: to establish necessary support and ancillary facilities for those agricultural  uses.  Consistent with the General Plan, the Hibino Ranch is zoned Farmlands (F-40). The minimum parcel size  requirement for creating a new parcel is 40acres. Highest and best use is defined as follows:  HIGHEST & BEST USE  The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial  feasibility, and maximum, productivity.?  61 In 1978 California voters approved Proposition 13, which limits the maximum amount of any ad valorem tax on real property to one percent (1%) of the assessed value plus approved bonds and assessments; and it placed a maximum of 2% per year thatt the assessed value couldi increase, unless thep property has a change of ownership. 7Dictionary of Real Estate Appraisal- - 6t Edition. (Chicago: Appraisal Institute, 2015)p.109  Appraisal eport-MbnoWestphol Ranch LLC  Page 18  Packet Pg. 335    As IfVacant  The property is located within an intensive farming district oft the Salinas Valley where the historical use oft the subject property and adjoining properties is dedicated to an irrigated row crop agriculturaluse. Land use policies are also oriented toward an agricultural use, and the existing agricultural conservation Therefore, the highest and best use of the property is agriculture and the most probable agriculturaluse  easement would preclude the conversion of thei farmland to a non-agricultural use.  isi irrigated row crop farming of fresh vegetables.  As Improved  The irrigation wells and pipelines support the highest and best use of thel land and their value is included  in the underlying land value.  Building improvements are limited to a small farm utility building. The building provides utility to the  agricultural operation. and supports the highest and best use oft the land.  VALUATION COMMENTS  The purpose oft the appraisal ist to estimate the' "fair market value" of the real property in accordance with California eminent domain civil procedure codes. As per California law the valuation process involves  several steps which are: summarized as follows:  1) thet fair market value of the property before thet take; 2) thet fair market value of the part taken; 3) thet fair market value of the remainder as part oft the whole; 4) thet fair market value of the remainder before considering special benefits; and 5) the fair market value oft the remainder considering special benefits.  Appraisal Report- -h Hibino/Westpha Ranch LLC  Page 19  Packet Pg. 336    FAIRI MARKET VALUE OF THE PROPERTY BEFORE THE TAKE  The sales comparison and income approach are used to estimate the fair market value of the property, which aret thet two common methods utilized int the valuation of Salinas' Valleyf farmland. In applyingt these appraisal methods, the components of value include the land and the land improvements, which consist ofthei irrigation wells, pumping plants and irrigation pipeline. Inthe Salinas Valley, the contributory value of the land improvements is included in the land value and the common unit of measurement for In the sales comparison approach, an opinion of value is derived by analyzing and comparing similar properties that have recently sold, are listed for sale, or are under contact. A major premise of the sales comparison approach is that the market value of a property is related to what is being paid for Thei income approach is applicable as Salinas' Valley farmlandi is commonly rented andt thereisav veryactive market of real estate investors. From an investor's point-of-view, earning power is the critical element affecting property value. One basic premise of this approach is that the higher the earnings, the higher The most common income valuation technique is the direct capitalization method, which employs the  comparison purposes is the price per usable acre.  comparable, competitive properties.  the value, provided the amount of risk remains constant.  following relatively simple algebraic formula:  Income /Overall Rate = Value  The income is the market rental value of the farmland and the overall rate represents the rate of return that is being obtained within the marketplace for similar properties. This approach is commonly applied in the Salinas Valley by the market participants. Even buyers who intend to farm the property consider value based ont the relationship between a property's economic rental value and the price to be paid.  SALES COMPARISON APPROACH indicative of value:  Ina applying the sales comparison approach, the following sales are) judged to bei the most comparable and  Appraisal Report - Hibino/Westphal Ranch LLC  Page 20  Packet Pg. 337    Summaryo ofFormland! Sales Saler number Ranchr name Saledate Location Nearestcity Grantor Grantee Gross acreage Nonf farmablea acreage Otherl landu useacreage Usablea andi irrigatedf farmacreage Salep price  Wing Massa 305.7 0.0 00 305.7  Wimer  Harney  Vosti Nielson  Herold Breschini  Hunter  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 10/27/2023 6/30/2023 Chualar CynRd Highway 101 SpenceRd River Rd Olds StageRd Alta Street Hwy 101 Hunter lane YellowJuliet GIII8 &Hitcock Springbrook D'Arrigo C.N M. Nielsen Ptn D'Arrigo Caprara  Chualar Chualar Chualar Gonzales Wimer Clayton 138.6 5.0 p.2 133.6  Salinas Gonzales Soledad Salinas Vosti C.M.I NielsenP Ptn Meyers Breschini Duckworth  Rochal 82.8 0.0 p0 82.8  147.0 1.0 0.0 146.0  95.4 0.0 p0 95.4  188.5 0.0 10 187.5  560.4 0.8 21.6 538.0  179.7 50.7 p.0 129.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $10,000,000 $7,200,000  Pricep peru usablea acrel (land&i impr) $60,500 $61,200 $64,700 $66,000 $68,700 $77,100 $77.500 $87,000  Sales Location Map  GoogleEarth,  Appraisal Report - Hibino/Westpha Ranch LLC  Page 21  Packet Pg. 338    Sale. 1: Wing Ranch, Chualar The Wing Ranch is located on the east side of Highway 101, just north of Chualar and approximately 7 miles southeast of Salinas. This is within an intensive agricultural area where most of the farmland is dedicated to The property has a level topography with Placentia sandy loam and Chualar loam soils. These are decomposed granite (DG) soils that  row cropf farming.  arei inferior tot those on1 thes subject property as they require a relatively high degree of farm management. The entire property is usable with several wells that are interconnected with underground high pressure irrigation lines. According to the seller, the wells were in good condition and provided adequate water The property was not on the open market andi there was limited market exposure. Thetenant was at the end of their lease term and the property sold to an investor who renewed the leased with the existing tenant. The new lease was for at three-year term at a rental rate that is confidential. The contract rent, though, is neari market, which, int this area, variest fromabouts220010s2.60, peracre, includingproperty  with a good water quality.  taxes. The property sold for $18,500,000, or $60,500 per acre.  Sale 2: Wimer Ranch, Chualar The Wimer Ranchi is located oni the east side of Highway 101, between Chualar and Gonzales and about 9 miles south of Salinas. The ranch has direct north ands south bound accesst tot the highway. This location is within an intensive agricultural area where most of the farmland is dedicated to row cropi farming.  This property has an irregular shape as the Soogletact  northerly boundary of the ranch borders an open reclamation ditch. The usable land area is 133.64 acres, and the net crop area is 128t acres. The soils consist of Salinas loam (SaA) and Salinas clay loam (SbA), which are Class 1 soils suitable for growing a variety of crops. Irrigation water is provided from one well that yielded about 12 gpm per net acre. Building improvements include one 1,800 square foot pre- engineered: agricultural utility-storage building. The building is about 30y years old, of average quality,and  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 22  Packet Pg. 339    ing good condition. According tot the buyer, the building contributed an added value.  The property was not on the open market and sold directly to the long-term tenant for $8,174,000. An allocation of $74,000 is applied toi the shop building and $8,100,0001 for the farmland which equates toa  rounded land value of $60,600 per usable acre. Sale 3: Harney Ranch, Chualar The Harney Ranchi is located 4.2 miles southof Salinas and 3 miles north of Chualar. The property fronts the south side of Spence Road, between Highway 101 and Old Stage The property has al levelterrain, and thes soilis is Chualar loam with a Oto 2% slope. Irrigation water is provided from two wells with a combined capacity of 2,500 gpm plus there was at third well used mostly for dust control  Road.  andi for the buildings.  The property had been leased to Tanimura and Antlei fors several decades. Att thet time ofs sale, the property was farmed in strawberries and vegetables. According to thei tenant, during the 2021 and 2022 seasons this ranch suffered heavy losses to their late summer andi fall lettuce crops because of thel INVSvirus. At thet time ofsale, the property was subject to at three-year Lease with one year remaining and onet three- year option to renew. The contract rent, including property taxes was $2,490 per usable acre. This property was offered for sale in June 2023 at an asking price of $9,900,000. The demand for the property was limited due in part to the INVS virus, and the increase in interest rates. Piini Realty represented the buyer, whoi is a local strawberry grower, and purchase price was $9,450,000. The buyer was able to take over the farming operation at the end of the 2023 season and intends tot transition the  ranch to organic with strawberries being the primary crop.  Appraisal eport-MonoWettpha. Ranch LLC  Page 23  Packet Pg. 340    Sale 4: Vosti Ranch, Gonzales The Vosti Ranch is a 95-acre row crop ranch located on the south side of Gonzales River Road, adjacent to the city limits of Gonzales. The land uses include irrigated row crop farming on the properties outside the city limits and industrial for the adjoining properties within the city limits. The Gonzales General Plan identifies the Vosti Ranch as being within their sphere-of-influence for future industrial use. Developing this property  for industrial, though, is problematic as a condition of development would likely require constructing a This property has level, Class 1 and 2 soils that are considered prime and very similar to the subject property and suitable for a wide variety of fresh vegetable crops. Irrigation water is provided from a 38.23% interest in two wells that are shared between the Vosti Ranch and the neighboring property to thes south, which has a6 61.77% interest in each well. Buildingin improvements include one olderf farmhouse, two old barns, and two older farm labor houses. The improvements were in poor condition and did not The property was listedi for sale with Piini Realty; however, at the request of the sellers, it was only offered toi the tenant and the adjoining owner, and was purchased by the long-term tenant. The purchase price was reflective primarily of the property's agricultural use. The buyer and seller considered industrial development as being a long-term speculative use and the buyer was motivated to sell the property in  new SPRR crossing, which would require SPRR's permission.  contribute an added value.  2020.  Sale 5: Nielson Ranch, Salinas The Nielsen Ranch is located about 5 miles south of Salinas ont the east side oft the Salinas Valley, adjacent to the base of the Gabilan Being at the base of this mountain range, the farmland in this area is characterized by decomposed granite: soils that are abrasive on equipment and require a higher degree of farm management as compared to the Appraisal Report- Hibino/Westpha Ranch LLC  Mountain Range.  Page 24  Packet Pg. 341    farmland along the valley floor of the Salinas Valley. The primary crops grown in this area are fresh vegetables. Strawberries are also grown int this area; however, this is at the southern fringe for berries. The water resource at thel base of the Gabilan Range is limited as this Eastside Aquifer relies primarily on winter rain runoff from the Gabilan Range and less from the Salinas River. Groundwater wells in the Eastside Aquifer are mostly developed to about 500 to 800 feet and the better producing wells are generally found at the westerly end of this area. The primary groundwater well for the property was developed in 2001 and improved with a 300 hp pump and a' VFD motor. During the past few years this well was drawing sand and sand filters were installed to mitigate the sand clogging the: sprinklers and drip emitters. A1950 well, which was equipped witha a 300hp diesel motor, was a backup well though it was The Nielsen Ranch contains a gross land area of 187.5 acres and a net farming area of 176 acres. The terrain is gently sloping, and soils are decomposed granite, composed mostly of Chualar loam. The property has been mostly farmed for vegetable crops, with occasional rotations of strawberries. This property was offered for sale in May 2021 by Piini Realty and the offering included an adjoining 1- acre parcelthat was improved witha an oldersingle-family dwellingt that wasi ing good condition. Inaddition, the offering took into consideration a potential tax savings if a buyer were to acquire the existing partnership, avoiding reassessment. Maintaining the existing taxes saves approximately $65,000 a year, which was estimated to contribute approximately $400,000 in value based on the present value of the The property went into escrow with the long-term tenant at $13,600,000. During escrow, the main irrigation well started drawing sand. It was believed that ar new well would be necessary' within the next five years, and a $223,350 credit was provided to the buyers. The credit was assumed to be 50% of the cost of a new well. An additional credit of $5,000 was provided to the buyers for the cost of removing Thei final sale price fort thei farmland and residential parcel was $13,371,650, allocated as follows:  relatively highi in salts.  income for 10 years at 10%.  personal property from the residential property.  Sale Allocation Description Farmland Residential parcel Totals  Acres 187.5 1.0 188.5  Price $12,876,650 $495.000 $13,371,650  Price/Acre $68,675 n/a $70,937  Appraisal Report- - Hibino/Westpha Ranch LLC  Page 25  Packet Pg. 342    Sale 6: Herold Ranch, Gonzales The Herold Ranch involves 560.4 acres of prime farmland located ont the wests side oft the City of Gonzales, extending towardi the Salinas River and Gonzales' wastewater treatment facility. The ranch is located to thei immediate north of the subject property. The farmland is on two benches, with 430t acres of upper bench farmland that has à  uniform Cropley silty clay soil, 130t acres on a lower bench with sandier soils, and 0.8t acres on a bank that separates the two benches. The upper bench acreage includes 21.6t acres that are located within the city limits of Gonzales and zoned industrial. The 538.8t acres situated outside the city limits are subject to an Agricultural Conservation Easement and al Farmland Security Zone Contract. Five wells provide irrigation water tot the ranchy witha a combined capacity of5 5,550 gallons per minute that There are two building yards on the ranch. At the northeast corner and situated within the city limits of Gonzales is a 60t-year old labor camp that is commercially operated as an H2A facility and permitted for 120beds. The laborcamph hast fourdormitorystylel buildings, and oldersingle-family dwelling,ac commercial kitchen-dining room, restroom, and laundry facilities. Based on bedroom sizes and the H2A requirement of one bed per 50 square feet, this facility could possibly accommodate 141 beds. City water and city The second building yard is an agricultural yard improved with an older, low-cost single-family dwelling, wood barn and an equipment shed. These improvements provide utilityt tot thet farming operation but did The property was leased through October 31, 2020, at a gross rent of $2,070 per acre. Market rents in the immediate area at the time of sale varied from about $2,000 to $2,500 per acre, including property taxes. Turnover of prime farmland in the Gonzales area is rare as most tenants have a long-term relationship with their landlord, and landlords in general are not overly aggressive on lease renewals. The Herold Ranch was offered ont the open market by Piini Realtyi in September 2019. Several offers were received and the property sold for $41,500,000 in. January 2020. The buyers allocated $5,000,000 to the  is distributed by underground high-pressure lines.  sewer: serves the labor camp.  not contribute an added value.  21.6 acres of industrial-zoned land and the labor camp, summarized as follows:  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 26  Packet Pg. 343    Sale price Farmland allocation Usablei farmacres Price per usable acre (rounded)  $41,500,000 $5.000.000 $36,500,000 538.00 $67,800  Less: Buyer allocation toi industrially: zoned lands andi farml labor camp  Sale 7: Breschini Ranch, Hwy 101, Soledad The Breschini Ranch is a 2023 farmland sale located on the west side of Highway between Soledad and Greenfield. Access is provided from a paved frontage road to Highway 101. Irrigated row crop farming is the primary use int the general area of the sale and agricultural rents vary from about $1,500 to $1,800 per acre, including propertyt taxes.  Gobiglet Earth  This propertyl has a gross land area of about 180 acres ande extendsi from Highway 101 toi the Salinas River. Approximately 50 acres are in the river and the usable land areai is 130t acres. The soil consists of about 75% Elder sandy loam and 25% Arroyo Seco gravelly loam. These are well drained soils that formed in granitic alluvium and sedimentary rocks. Irrigation water is provided from two groundwater wells and reportedly the water quantity is abundant, and the quality is very good. Building improvements include an older single-family dwelling and several outbuildings, alli in very poor condition and unoccupied. This property was not on the open market and sold directly to thei tenant, who farms and owns several other properties ini thei immediate area. The property: soldi for $10,000,000, whichi is an exceptionally high price compared to other sales and agricultural rents. Applying a relatively high gross rent of $1,800 per acre, the net return after property taxes is 1.5%, which is one of the lowest rates of return int the Salinas Valley. In the final analysis, this sale is excluded as direct market comparable as it is considered an  aberration within the market and not indicative of market value.  Appraisal Report- -H Hibino/Westpha Ranch LLC  Page 27  Packet Pg. 344    Sale 8: Hunter Lane Ranch, Salinas The Hunter Ranch is located 0.7 miles southwest of Salinas and is within the Spreckels District of the Salinas Valley. The Spreckels District is bounded by! Highwaye 68to the west, the Salinas River and the town of Spreckels to the south, Abbott Road and Highway 101 to the north and the Salinas River and the former Firestone plant representing the easterly end.  This areai is known fori its loamy soils, good water quality and a coastal climate suitable for strawberries and a variety of Salinas Valley vegetable crops including late-summer lettuce. Rents in this area trail slightly behind the Blanco area and range from about $3,500 to $4,000 per acre. Similar to the Blanco This property is situated on the south side of Hunter Lane and has a rectangular shape and level topography. The soil is mostly composed of Salinas series soil, which is a prime soil with few limitations and capable of growing a wide variety oft fresh vegetables and strawberries. The property is improved with one older groundwater well that was developed in 1963 to a depth of 2561 feet and one older single- family dwelling. The well casing is deteriorating and will need to be replaced within a few years. The estimated cost to develop a new well into the 400-foot aquifer was $320,000, which the buyer plans to do. The dwelling was in poor condition and the buyer anticipates spending about $100,000 to $150,000 on house improvement repairs after the sale and then use the house fore employee housing. Ini the as-is The property was leased for ai three-year term with at termination date of October 31, 2025. The gross The property was listed with Piini Realty in April of 2023 at an asking price of $90,000 per acre, was under contract ati thel beginning of June, and closed escrow on June 30th1 for $87,000 per acre. While thel buyer isal local strawberry grower, they intend to continue leasing the property to the existing tenant as their The buyersi intendi to entert the propertyi intoaFarmland: Security Zone contract and spend about $320,000 on capital improvements for a new well resulting in at total investment of $7,520,000. Based on the lease terms and projected property taxes, the overall rate of return is about 2.9% in Year 1 and increases to  District, farmland turnovers in the Spreckels District are rare.  condition of the dwelling, it did not contribute an added value nori a cost to remove.  rent obligation oft thet tenant was $3,600 per acre.  motivation is for al long-term passive investment.  about 3.5% in Year 3.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page. 28  Packet Pg. 345    Sale Adjustments Property Rights Conveyed  Sale 6is is subject to an agricultural conservation easement; however, the easement did not affect the sale  ofthat property. Aproperty rights adjustment is not applied.  Financing Terms warranted. Conditions of Sale  The sales either involved cash sales or conventional financing. A financing terms adjustment is not  The: sales were all arms-length transactions and ac conditions of sale adjustment is not warranted.  Expenditures After Sale  Sales 5and 8 will require new wells. Thel buyer of Sale! 5 was credited $223,350 in escrow for half the cost ofa new well. This credit is added to the purchase price as an after-sale expenditure. The cost of a new well on! Sale 8 was estimated at $320,000, which is added as an after-sale expenditure.  Market Conditions  The sales occurred between January 2020 and September 2023. During this period, interest rates and inflation were increasing, and agricultural rents were generally appreciating at a rate of 2.0%t to 3.0% per year. During this period, two relatively similar properties sold, providing a direct indication as to the change int farmland prices. Al paired sale comparison between the 2020 purchase of the Wing Ranch (Sale  1) and the 2023 sale of the Harney Ranch (Sale 3) indicates thei following:  Market Conditions. Adjustment Sale number Ranchr name Area Sale date Usablef farmacreage Farmland allocation per acre Agricultural adjustment Adjusted farmland. alloc/acre Annual %c change  1 Wing Chualar 11/2/2020 305.7 $60,517 0.0% $60,517  to  3 Harney Chualar 9/5/2023 146.0 $64,726 0.0% $64,726  Difference  2.84  7.0% 2.4%  Basedi inj part ont the above an annualt time adjustment of 2.5%i is applied toi the 2020to 2022 sales through the end of 2023. An adjustment, though, is not applied to Sale! 5, which sold in 2021 at a high price that  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 29  Packet Pg. 346    is considered indicative ofc current market conditions. Ar market adjustment is also not applied toi the 2023 sales as they are considered indicative of market conditions as oft the valuation date.  Agricultural Adjustment  The agricultural adjustment pertains to the difference in soil, water and climate between the sales and thes subject. The adjustments appliedarep predicated oni internal comparisons between these sales as well as a comparison of rental values. The following paired sale comparisons are considered in determining  appropriate agricultural: adjustments.  Location Adjustment Sale Comporison #1 Sale number Ranchr name Area Sale date Usablef farm acreage Farmland allocationg per acre indicated % difference Sale Comparison #2 Sale number Ranch name Area Sale date Usablef farma acreage Farmland allocation pera acre Market conditions adjustment Adjusted price per acre indicated % difference Size  1 Wing Chualar 11/2/2020 305.7 $60,500  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 9.2%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 12.1%  8 Hunter Salinas 6/30/2023 82.8 $90,876 0.0% $90,876  to  4 Vosti Gonzales 10/27/2020 95.4 $66,038 7.9% $71,284 -21.6%  and  6 Herold Gonzales 1/3/2020 538.0 $67,844 10.0% $74,619 -17.9%  Generally, there is ani inverse relationship in unit prices based on size; however, ini the Salinas) Valley there is typically not a significant per-acre difference for farm properties. Institutional investors and many growers prefer 200 to 500 acres to 201 to 100 acres because of economies of scale and the efficiency of farming al larger property. Therefore, a size adjustment is not applied to these sales.  Appraisal eport-HonoWestpha. Ranch LLC  Page 30  Packet Pg. 347    Sale Adjustment Summary  Thei following tables summarize the adjustments applied tot the sales.  Adjustment Summary Sale number Ranchn name Saled date Location Nearesto city Usablefarma acres Salep price Non-farmland: allocations Farmlanda allocation Propertyr rights adjustment Adjusteds salep price Expenditures after sale Adjusteds salep price Adjusted pricep per usablea acre Marketo conditions adj. @2.5% Adjusted pricep per usablea acre Agricultural adjustment  Wing Wimer Chualar Chualar 305.7 133.6 $Q -$74,000 S0 $0 $60,517 7.9% $65,304 10.0%  Harney  Vosti  Nielson  Herold  Hunter Salinas 82.8 $0 $Q  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023  Chualar CynR Rd Highway 101 SpenceR Rd  River Rd OldStageR Rd Alta Street Hunter Lane  Chualar Gonzales 146.0 $Q So $0 $64,726 0.0% $64,726 10.0%  Salinas Gonzales 187.5 $0 $495.000 $5.000.000 $0 $400.000 $Q $223.350 $66,038 $65,093 7.9% 0.0% $71,284 $65,093 0.0% Z.5%  95.4  538.0  $18,500,000 $8,174,000 $9,450,000 $6,300,000 $12,876,650 $41,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $11,981,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,205,000 $36,500,000 $7,520,000  $0 $Q $61,718 5.6% $65,190 7.5%  $o $0 $320.000 $67,844 $90,876 10.0% 0.0% $74,619 $90,876 0.0% -20.0% $74,600 $72,700  Adjusted price per usablea acrel (rnd' $71,800 $70,100  $71,200 $71,300 $70,000  The above table provides an adjusted range of $70,000 to $74,600 per usable acre. Sale 6 provides the highest indication, but thisi is also the oldest salei includedi int this analysis and considering1 ther more recent sales, a lower value is appropriate. The remaining sales provide a range of $70,000 to $72,700 per acre from which a value of $71,500 is concluded for the Hibino Ranch from the sales comparison approach.  Hence, Land area (acres) Land value per squaref foot Land valuei fromt thes sales comparisons approach Rounded to nearest $1,000  89.9 $71,500 $6,425,705 $6,426,000  Appraisal Report-Mbino/Westphol Ranch LLC  Page 31  Packet Pg. 348    INCOME APPROACH  The income approach is based upon the economic principle of anticipation that value is created by the expectation of benefits to be derived in the future. There are a variety of income approaches, of which the Direct Capitalization Method is employed for estimating the fee simple land value. The Direct Capitalization Method applies an overall capitalization rate to a single year's net operating income (NOI). By dividing the NOI by an appropriate capitalization rate, the value estimate by the income approach is derived. This is an appropriate method when the income stream, either actual or estimated, is generated  by rentalrates at or near thei fair market level.  Gross Market Rent value is defined as:  Thei first stepi in applying thei income approach requires estimating the market rental value. Market rental  The most probable rent that a property should bring in a competitive and open marketreflecting the conditions andi restrictions ofaspecified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and  purchase options, and tenant improvements (TI's).8  Int the Salinas Valley, most leases are written on ar net basis witht thet tenant responsible for propertytaxes. Ifp property taxes were relatively similar amongst agricultural properties, the economic rent would be derived strictly from comparing net rents. However, because of California's Proposition 13 tax code and CSIP fees, the assessed valuation amongst properties can vary depending upon when the last transfer occurred or whether iti is within CSIP. Hence, property taxes are not consistent from one property to the next, and to accurately compare the rental value of properties the appropriate unit of measuring is the Ine estimating the gross market rentalvalue, we conducted ani investigation into grcuturairensimolwng irrigated farmland located ini the central portion oft the Salinas Valley. The generala area ofthis market rent  "gross rent" paid by thet tenant, which consists of the net rent and property taxes.  investigation is depicted in the following:  Dictionary of Real Estate Appraisal- - 6th Edition, Appraisal Institute; p. 140.  Appraisal Report-Mbmo/Westphal Ranch LLC  Page 32  Packet Pg. 349    Google Earth  Within the area depicted above, 11 comparable leases are considered in estimating the market rental value of the subject property. Due to the confidential nature of leases, the parties and/or properties are  not specifically identified, but are: summarized as follows:  Summaryo of Comparable Farm Leases Lease No. Area  Soil Summary 0%/100%/0% 09/1009/0% 1796/81%/2% 09/100%/0% 09/1009/0% 259/759/0% 09/100%/0% 5%/90%/5% 259/759/0% 09/096/100% 0%/100%/0%  2024 Season Gross Rent $2,260 $2,410 $2,424 $2,430 $2,500 $2,515 $2,560 $2,600 $2,615 $2,630 $2,840]  Lease Term Sandy/Clay, Loams/DGS  Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Chualar to Gonzales Gonzales to Soledad Chualar to Gonzales Gonzales to Soledad Gonzales to Soledad Salinas to Chualar Chualar to Gonzales  2023-2025 2022-2025 2024-2027 2022-2025 2023-2026 2021-2024 2023-2026 2023-2026 2021-2025 2023-2026 2021-2024  10 11  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 33  Packet Pg. 350    The above table provides an overallr range of $2,260 to $2,840 per acre. Within this range, Leases 2to1 10 provide the greatest comparability to the subject property and indicate a range of $2,410 to $2,630 per acre. In consideration fort the soils and water improvements, a rent at the mid-to-upper end oft this range would be expected, and a gross rent of $2,600 per acre is concluded as the market rent of the Hibino  Ranch. Expenses  Propertytaxes represent the primary expense item int this valuation. As noted previously, the propertyi is not subject to a Land Conservation Contract. Therefore, in the event of a sale, the property will be re- Int thei income approach, the property taxes assume the property is under an FSZ contract as the likely buyerwould! be expected to pursueal FSZ contract aftert the: sale. The propertyt taxes under an FSZcontract are accounted for by adding direct property taxes as al line item and adding 65% of the property tax rate However, because the propertyi is not currently enrolled in an FSZ contract, al buyer will not realize thet tax savings of an FSZ contract until the 2025-2026 tax year. Therefore, the added taxes during this period of  assessment under California's Proposition 13 property tax code.  tot the capitalization rate.  time are deducted from the capitalized value.  Capitalization Rate  In estimating an appropriate capitalization rate, consideration is given to the sales included in the sales  comparison approach. The market datai is summarized as follows:  Summary ofF Farmland Copitalization! Rates Soler number Ranchr name Saledate Location Usablef farmacres Farmland allocation Expenditures afters sale Adjustedf farmland allocation Farmland allocation per acre Gross income per acre Propertyt taxe estimate upons sale Neti incomep pera acre Capitalization rate  Wing 305.7 $Q $60,500 $2,465 $465 $2,000 3.3%  Wimer 133.6 $o $61,700 $2,600 $475 $2,125 3.4%  Harney 146.0 $Q $64,700 $2,485 $490 $1,995 3.1%  Vosti Nielson 95.4 187.5 $0 $223.350 $66,000 $67,200 $2,500 $2,600 $750 $250 $1,750 $2,350 2.7% 3.5%  Herold Hunter 538.0 82.8 So $320.000 $67,800 $90,900 $2,500 $3,600 $505 $715 $1,995 $2,885 2.9% 3.2%  11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 6/30/2023 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $36,500,000 $7,200,000 $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,605,000 $36,500,000 $7,520,000  Chualar CynRd Highway 101 SpenceR Rd  River Rd Olds StageRd Alta Street Hunter lane  Appraisal Report - Hibino/Westpha Ranch LLC  Page 34  Packet Pg. 351    The above table provides a range of 2.7% to 3.5%. Sale 4 at 2.7% provides the lowest indication and is near the subject property; however, this ranch has a long-term potential fori industrial development and ar rate above 2.7% applies to the subject property. The remaining sales provide a range of2.9%1 to 3.5%. While rates have beeni trending upwards in recent years, iti is estimated that demand would be strong for the subject property duet toi its soils, location, and water quality. Aratet toward the lower end oft this range  isa appropriate, and a rate of 3.0% is applied. Hence,  Usableacres Gross rent per usablea acre Gross annual rent Less: Direct property taxes Net annual income before %b basedt taxes Capitalization rate Add: FSZ adjusted tax rate Weighted capitalization rate Capitalized value under al FSZ contract Less: Additional taxes until FSZ enactment indicated valuef fromi the income approach Rounded to Value per usable acre FAIRI MARKET VALUE CONCLUSION Valuei indicated from the sales comparison approach Valuei indicated from thei income approach  89.9 $2,600 $233,662 $5,887 $227,775  3.00% 0.74%  1.14% x 65.0% =  3.74% $6,085,055 $48.000 $6,037,055 $6,037,000 $67,200  $6,425,705 $6,037,000  The two approaches to value provide the above indications. Greater weight is given to the sales comparison approach due to the market data available, which includes two recent sales of adjacent ranches. Based upon the above, the fair market value oft the Hibino Ranch before the take is concluded  as follows:  Fair market value oft the property before the take Fair value value per acre (rounded)  $6,290,000 $70,000  Appraisal Report-H Hibino/Westphal Ranch LLC  Page 35  Packet Pg. 352    FAIR MARKET VALUE OF THE PART TAKEN  As per the legal descriptions oft the proposed takes, which are included int the addendum, the parts taken  are depicted as follows:  PropertyE Boundary Proposed SSE (Approx) Proposed TCE( (Approx)  LI  E  GoogleEarth  The SSE is a narrow strip that runs along the northwest boundary, varying in width from 4.04t feet to 4.70t feet. According to the legal descriptions included in the addendum, the SSE encumber a total of 6,192tsquarei feet., This appraisalis predicated ont the extraordinary assumption that the newconveyance line will be buried to a depth that will not interfere with the farming operation, including deep ripping. The proposed TCE runs along the northwest boundary, varies in width from 15.6t feet to 15.98t feet, encumbering 0.52+ acres according to the legal description included in the addendum. However, this includes lands within the proposed SSE. Omitting the land within the proposed SSE, the TCE encumbers  ppronmatelyo38tatres,  The proposed easements are: summarized as follows:  Appraisal Report -H Hibino/Westpha Ranch LLC  Page 36  Packet Pg. 353    Take Summary Description  Square Feet 6,192 22,651 6.192 16,459  Acres 0.14 0.52 0.14 0.38  Sanitary Sewer Easement (SSE) Temporary Contruction Easement (TCE) Less:A Area within proposed SSE Total TCE area outside of proposed SSE EASEMENT #1 (SANITARY SEWER EASEMENT)  TCE  The fair market value of the property before thet take was concluded at $70,000 per acre. Thet fair market value of the SSE would be less than the fee simple value because the fee owner retains use of the easement areai fori internal roads and farming. The value of the SSE is concluded at 50% of thei fee value.  Therefore, the value of the part taken is calculated as follows:  SSE land area (square feet) Fee simple! land value per acre beforet thetake %0 of fee: simplevalue Fair market value per acred of thep parttaken Fair market value oft the part taken  6,192  $70,000 50.0%  $35,000 $4,975  EASEMENT #2 (TEMPORARY CONSTRUCTION EASEMENT)  The value of the TCE is considered later as iti is onlya at temporary taking. The fair market value oft the part taken is concluded as follows:  FAIRI MARKET VALUE OF1 THE PARTTAKEN  Fair market value of the part taken  $4,975  FAIR MARKET VALUE OF THE REMAINDER AS PART OF1 THE WHOLE  Thet fair market value of the remainder: as part oft the whole is thei fair market value oft the property! before  thei take less thet fair market value of the part taken, whichi is calculated as follows:  Appraisal Report- - Hibino/Westpha Ranch LLC  Page 37  Packet Pg. 354    Fair mar rket value oft thep property beforet thet take Fair mar rket value oft thep parttaken Fair market value oft the remainder as part of the whole  $6,290,000 $4.975 $6,285,025  FAIR MARKET VALUE OF THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS  There are no damages associated with thet take as the remaining acreage would retaina a value of $70,500 per acre. Therefore, the fair market value of the remainder before considering special benefits is  concluded ast follows:  Fair market value of the remainder as part of the whole  $6,285,025 $0 $6,285,025  Damages  Fair market value of the remainder after the take before considering special benefits  FAIRI MARKET VALUE OF THE REMAINDER CONSIDERING SPECIAL BENEFITS  The project does not provide special benefits. Therefore, thei fair market value oft the remainder after the  take and after considering special benefits is as follows:  Fair market value of the remainder after thet takel beloreconideringspatial benefits Fair market value oft the remainder after the take after considering: speciall benefits  $6,285,025 $0 $6,285,025  Special benefits  FAIR MARKET VALUE OF1 THE TEMPORARY CONSTRUCTION EASEMENT  The proposed TCE encumbesappro.aimatelkx 0.38t acres oft the subject property, excludingt the land areas within the proposed SSE. The easement would encumber the property for 6 months, commencing The value of the TCE is predicated on an appropriate land rent for1 the TCE fori its duration. The market rent of the subject property was previously estimated at $2,600 per acre. Hence, the value of the TCEis  November 1, 2024 and continuing through April 30, 2025.  concluded as follows:  Appraisal Report- - Hibino/Westpha Ranch LLC  Page 38  Packet Pg. 355    TCElanda area (acres), excludingt the landa area within thep proposed SSE  0.38 $2,600 $982 6 $491  Gross annual rent per acre Annual rent for theTCE Estimated duration oft the TCE (months) Fair market value ofthe TCE  Additionally, the property owner will likely have to install a farm road along the south side of the TCEto continue farming the remainder of the property during the construction period. According to this particular property owner and at the direction of the client, thei farm road will need to be 151 feet in width and will result in al loss of utility during the construction period. Assuming ar road width of 15 feet for the length oft the TCE, this temporary farm road wille encompass approximately 0.49t acres. The land area within the TCE and this adjoining farm road will likely be compacted from the construction and/or road use and will likely require a period of time to restore those lands to a farming use. These lands could also provide limited utility to the property owner for the remainder of the 2025 season depending on crop plantingschedules. To account fort this loss of utility, restoration period, and potential interruption of crop planting schedules, an additional 61 months is applied to the TCE and an additional 12 months toi thet temporary farm roadi toy provide sufficient timet to rip, tilla and prepare the soils foraf farming  use. Additional Compensation, for Compacted Lands Acres Gross annual rent per acre Annual rent for the compacted landa areas Additional value for compacted lands  TCEArea Area Adj. to TCE 0.38 $2,600 $982.41 6 $491  Total  0.49 $2,600 $1,278 12 $1,278  Estimated duration tor restore compacted areas tof farming use( (months) Thus, thet total compensation fort the TCE is as follows:  $1,769  Fair market valued oft thel TCE  $491 $1,769 $2,261  Additonal valuef fori thel TCE-related compacted lands Total fair market value oft the TCE & compacted! lands  Appraisal Report-H Hibino/Westphal Ranch LLC  Page 39  Packet Pg. 356    COMPENSATION SUMMARY  Fair market value oft thej part taken as parto oft thev whole  $4,975  Damages & special benefits Damages Less:Special benefits Subtotal Total value oft thet take  $0 $0  $0 $2.261 $7,236  Value of the TCE, including compensation for temporaryf farm roads  Appraisal Report- -h Hibino/Westpha Ranch LLC  Page 40  Packet Pg. 357    CERTIFICATION  Icertifythat, to the best of my knowledge and belief:  The statements of fact contained in this report aret true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject of this report, and no Ihave performed no services, as an appraiser or ina any other capacity, regarding the propertyt that is the subject of this report within the three-year period immediately preceding acceptance of Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements oft the Appraisal Institute relating to review As oft the date ofthis report, John' W. Piini, MAI has completed the continuing education program  opinions and conclusions.  personal interest with respect to the parties involved.  this assignment.  involved withi this assignment. predetermined results.  subsequent event directly related to thei intended use of this appraisal.  Appraisal Institute. certification.  by its duly authorized representatives. for Designated members oft the Appraisal Institute.  Aptan  John W. Piini, MAI h  Certified General Real Estate. Appraiser State of California, BREA Number AG005214  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 41  Packet Pg. 358    CERTIFICATION  Icertify that, toi the best of my knowledge and belief:  The statements of fact contained in this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest in1 the property that is the subject of this report, and no Ihave performed no services, as an appraiser ori in any other capacity, regardingi the propertythat is the subject of this report within the three-year period immediately preceding acceptance of Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 ofi the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made aj personal inspection of1 the property that is the subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As of the date oft this report, Greg Piini, MAI has completed the continuing education program for  opinions and conclusions.  personal interest with respect to the parties involved.  this assignment.  involved with this assignment. predetermined results.  subsequent event directly related to thei intended use of this appraisal.  Appraisal Institute. certification.  byi its dulyauthorized representatives. Designated members of the Appraisal Institute.  CertifiedGeheral! Reall Estate Appraiser of California, BREA Number AG044270  State  &  Appraisal Report - Hibino/Westpha Ranch LLC  Page 42  Packet Pg. 359    LIMITING CONDITIONS  Assumptions and Limitations of Appraisal  This appraisalist for no purpose othert than propertyvaluation, andi the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations tot the accuracy oft the information and analyses contained int this appraisal. Before makingany decision based on the information and analysis contained in this report, it is critically important to read  this entire: section to understand these limitations. Appraisal is not al Legal Opinion discussed in the report.  No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumedi to be marketable andi free and clearof alll liens and encumbrances, easements, and restrictions except those specifically discussed int the report. The! property isa appraised assuming it to be under responsible ownership and competent management and available Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for Itis assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation. Any significant question should be addressedi to local zoning or land use officials and/or an attorney. Itisa assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and  fori its highest and best use.  this appraisal.  regulations affecting the subject property.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 43  Packet Pg. 360    Testimony or attendance in court or at any other hearing is not required by reason of rendering this  appraisal unless a signed contract has been executed prior to the date oft this report.  Appraisal is not a Survey  No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment ofr real property improvements is assumed to exist. Itis assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described andi that there is no encroachment or trespass unless noted in the report. All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. As surveyor should be consulted if there is any concern on boundaries, setbacks, Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for No opinion is expressed. as tot thev value ofs subsurface oil, gas or mineral rights and that the property is not subject to surface entry fori the exploration or removal ofs such materials except as is expressly stated.  encroachments, or other survey matters.  Limited Data  matters int this report should be considered preliminary in nature.  other components  any such condition or for any expertise or engineering to discover them.  Appraisal Report-MbinoWestphol Ranch LLC  Page 44  Packet Pg. 361    No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any! kind unless otherwise noted int the report. It is further assumed that the lot does not contain any type of dumps site and that there are no underground tanks (orany underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted ini the report. Ifany problems of this nature are known toi the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in thei field should be consulted if any interested party has questions on environmental factors. Ifit is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested partyi is concerned about the existence, condition ora auagydanypanculirie, we would  additional cost willl be necessary to estimate the effects of such.  strongly suggest that a construction expert be hired for a detailed investigation.  Appraisal Report Limitations  Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property ort ther real estate market. While no factors we believe tol be: significant but unknown tot the client have been knowingly withheld, iti is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue  provided by others, etc.  additional data gathering for al higher level of certainty.  Appraisal Report-H Hibino/Westphal Ranch LLC  Page 45  Packet Pg. 362    Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed. as advice or recommendation: to act. Any actions taken byy you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just Appraisal reports made for lenders are technical documents specifically made to lender requirements. Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of Neither all nora any part oft the contents oft this report, especially any conclusions as toy value or the identity oft the appraiser or thet firm to which appraiser is connected, shall be disseminated tot the publici for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval oft the author. The estimated market value, whichi is defined int the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, colorornationale origin oft the present owners or occupants ofthe properties in1 the vicinity oft the property  the value estimate andi information given ini this report.  the information contained in these reports.  economically int the marketplace as oft the date of value.  appraised.  Acceptance of Appraisal Report authorized representatives.  The use oft this report is subject tot ther requirements oft the Appraisalinstituter relating to review by its duly This appraisal is an estimate of value based on an analysis of information knownt tot the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect ori incomplete information. Ifnewi information of significance comes tol light, ori ifany conditions become apparent not previously knowni to the appraiser(s) which would affect the value of the property, the value giveni ini this report is subject to change without notice and a re-appraisal at additional cost will Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers/s).  ber necessary.  Appraisal Report-H Hibino/Westpha Ranch LLC  Page 46  Packet Pg. 363    ADDENDUM  Packet Pg. 364    Grant Deed of Easement #1 - Sanitary Sewer Easement APN 223-011-059 Hibino to City of Gonzales LEGAL DESCRIPTION  Situate within Tract 3A of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded April 4, 2020 in Document Number 2020019826, Official Records ofs said County, being more particularly described as follows: BEGINNING at the most northerly corner ofs said land described in Document Number 2020019826; 1) South 38° 35' 06" East, 4.04 feet; thence departing said northeasterly line and crossing said land  thence along the northeasterly line ofs said land  2) South 53° 36' 29" West, 181.30 feet; thence 3) South 53°31'35" West, 599.00 feet; thence 4) South 53° 32' 35" West, 601.851 feet; thence 5) South 53° 37' 15" West, 45.32 feet; thence thence along said northwesterly line  6) North 38° 07' 31" West, 4.701 feet more or less to a point oni the northwesterly line ofs said land;  7) North. 53°34'25" East, 1427.45 feet to the POINT OF BEGINNING.  Containing an area of 6,192 square feet, more or less. This legal descriptionwas prepared by: DRAFT  Lynn A. Kovach P.L.S.5321 Dated: December17,2021  Packet Pg. 365    Existing SS easement 321-OR-21  S New 50.00' wide TCE  5  Easement #2 New TCE encumbering Hibino parcel  6 e  Easement #1 New SS easement encumbering Hibino parcel  Packet Pg. 366    Grant Deed of APN 223-011-059 Hibino to City of Gonzales LEGAL DESCRIPTION  Easement #2 Temporary Construction Easement Area  Situate within Tract 3A of the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of the land described in the deed recorded April 4, 2020 in Document Number 2020019826, Official Records of said County, being more  particularly described as follows:  BEGINNING at the most northerly corner of said land described in Document Number 1) South 38° 37 09" East, 15.60 feet; thence departing said northeasterly line crossing  2020019826; thence along the northeasterly line of said land  said land  2) South 53° 39' 19" West, 284.93 feet; thence 3) South 53° 28'33" West, 1000.06 feet; thence said land; thence along said southwesterly line said land; thence along said northwesterly line  4) South 53° 56' 22" West, 142.59 feet more or less to a point on the southwesterly line of 5) North 38° 07' 31" West, 15.98 feet more or less to a point on the northwesterly line of  6) North 53° 34' 25"East, 1427.45 feet to the POINT OF BEGINNING.  Containing an area of 0.52 acres, more or less. This legal description was prepared by: DRAFT  Lynn A. Kovach P.L.S. 5321 Dated: December 17, 2021  Packet Pg. 367    Existing SS easement 321-OR-21  S New 50.00' wide TCE  5  Eosement #2 New TCE encumbering Hibino parcel  6 3 (  Easement #1 New SS eosement encumbering Hibino parcel  Packet Pg. 368    PIINI REALTY  QUALIFICATIONS OF THE APPRAISER  John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of  Monterey, San Benito, Santa Cruz and! Santa Clara Counties.  Academic Background Formal Education Appraisal Education  University of California, Los Angeles, BA degree -1974  Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements. Since 1983, John Piini has completed a number of appraisal courses and seminars and is current  with Appraisal Institute's continuing education requirement.  Professional Experience 1975-1983 1983-2008 2008-p present  Associate appraiser with Joe Piini, MAI  Part owner of Piini Realty, ai family owned and operated real estate firm involved in appraising, brokerage, development and management. Upon the retirement of Jim Piini, John Piini became the sole owner of Piini Realty, which is a full service real estate firm providing appraisal, brokerage and property management services. In 2008, John Piini obtained his California Brokers license and his real estate activity focuses primarily on appraising and marketing agricultural properties.  Appraisal Assignments financial lending.  The majority of assignments pertain tot the valuation of agricultural and acreage properties fora variety of purposes including estate planning, conservation easements, trust management and  Valuations of commercial, industrial special-use, residential and  development properties are also performed.  Professional affiliation and memberships  MAI -I Member of the Appraisal Institute - Certification Number 6708 California Certified General Real Estate. Appraiser - OREA: # AG005214 California Licensed Real Estate Broker- - DRE # 00542238  Monterey County Board of Realtors  263 Lincoin Ave., Salinas, CA93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 369    QUALIFICATONS OF THE APPRAISER  Greg Piini, MAI has been engagedi in the real estate business since 2000. Over this period oft time, Greg  hasi focused on both real estate appraisal and property management.  Academic Background Formal Education  Hilisdale College, Hillsdale, Michigan. Bachelor of Arts in Finance, 2000  Appraisal Education  Appraisal Institute - 2001 through current. Beginning in 2001, Greg began taking appraisal classes with the Appraisal Institute and has continued taking classes and seminars over the years. Greg is current with the continuing education requirements of the BREA and the  Appraisal Institute. Professional Experience Piini Realty, Inc. 2000-2019  During the first nine years, Greg worked as an associate appraiser with John W. Piini, MAI. In 2009, Greg obtained his Certified General Real Estate Appraisal License, and in 2016, he completed the requirements to obtain the MAI designation of the Appraisal Institute. In 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage,  2019-Current  development and management.  Appraisal Assignments  The majority of appraisal assignments involve acreage, agricultural, commercial and industrial properties located in Monterey, Santa Cruz, San Benito and Santa Clara Counties. The appraisals are prepared for a variety of clients that range from attorneys, land trusts, government agencies, and property owners for a variety of purposes that include estate planning, conservation easements, trust management, and financial lending.  Professional affiliation and memberships Appraisal Institute  California Certified General Real Estate Appraiser- - BREA # AG044270 California Licensed Real Estate Salesperson - BRE# # 01294279  Monterey County Board of Realtors  Packet Pg. 370    TAYLOR FARMS  Grant of] Easement- - Sanitary Sewer Easement Grant ofl Easement- - Public Utilities Easement Grant of Temporary Easement Right-Of-Entry Appraisal Report - Taylor Farms Memorandum ofUnderstanding- = Taylor Farms  Packet Pg. 371    RECORDING REQUESTED! BY AND WHEN RECORDED: MAIL TO: CITY OF GONZALES Public Works Department POBOX647 Gonzales, CA 93926  Nol Recording fee- - Government Code $2 27383  Space above this line for Recorder'suse  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by Taylor Fresh Foods, Inc, al Delaware corporation ("Grantor"), for the benefit of the City of Gonzales, an incorporated City ("Grantee-"), with reference to the following  recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as. APN 223-081-015, B. Grantee has requested aj permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement Purpose") aj portion ofthel Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the site plan NOW,THEREFORE, inconsiderationofthei foregoing recitals, thec covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby  ini the County of] Monterey, State ofCalifornia.  attached hereto as, Exhibit B.  acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a permanent non-exclusive easement  to the Easement Area for the Easement Purpose; and for the further purpose ofi ingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related toi the Easement Purpose, together with ai right ofway upon, over, under, through and across the Property to access the Easement Area (the "Easement"). Grantor agrees fori itself, its successors and assigns, not to erect, place or maintain, nort toj permit the erection, placement or maintenance ofany building, planter boxes, earth fill or other structures over thel hereinafter described Easement Area.  2.  Compensation. Grantor acknowledges receipt of compensation from Grantee for  the Easement in accordance with the value oft the property per the Appraisal Report dated August 16, 2024. As additional consideration for the Grant of Easement, Grantor and Grantee have  executed al Memorandum ofUnderstanding ofe even date herewith.  Packet Pg. 372    3.  Maintenance. Grantor hereby grants to Grantee aj perpetual non-exclusive easement  for maintenance and repair purposes over the Easement Area and such portions oft the Property as arei reasonably necessary for such maintenance and repair. Grantee shall be responsible for all costs 4. No Gift or Dedication. Nothing contained in this Easement Agreement shall be deemed to be a gift or dedication of any portion of the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted in this Easement Agreement shall be strictly limited to and for the purposes herein expressed with respect to private property solely for the benefit oft the parties and their respective  associated with the Grantee's use oft the Easement.  tenants, invitees and licensees.  5. Mortgagee Protection. No breach or violation of this Easement Agreement or of thei restrictions provided herein shall renderi invalid the lien ofa any mortgage, deed oftrust or similar instrument securing a loan made in good faith and for value with respect to any portion of the Property, but all ofthe provisions ofthis Easement Agreement shall bel binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to the Property or any portion thereof, by foreclosure, trustee's sale, deed in lieu of  foreclosure, or otherwise. 6. 7.  Notice of Material Issue. Grantor shall promptly notify Grantee in writing of any Governing Law. This Easement Agreement shall be governed by and construed in 8. Successors and Assigns: Covenants Running with the Land. This Easement Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. ofthe California  material issue or fact that may affect thel Easement. accordance with the laws oft the State of California.  Civil Code. 9.  Severability. If any provision of this Easement Agreement is prohibited or held to  be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability oft the other provisions shall not be affected or impaired thereby and (b) the parties hereto shall endeavor in good faith negotiations to replace thei invalid or unenforceable provisions with valid and enforceable provisions, the economic effect ofwhich comes as close as possible to that of the invalid or unenforceable provisions. 10. Remedies. In the event of any breach or threatened breach of any provision ofthis Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to join such breach or threatened breach and to recover damages for any such breach. The remedies permitted or available pursuant to the provisions of this Easement Agreement shall be cumulative  and in addition to any rights or remedies available at law ori in equity.  2  Packet Pg. 373    11. Indemnification.  Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties")harmless: from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly from Grantee'se exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising solely from the  willful or negligent acts or omissions ofa Grantor Party.  ii.  Grantor shall indemnify, defend and hold Grantee, and its officers,  affiliates, contractors, employees and agents (collectively, "Grantee Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly from Grantor's exercise of any rights retained by Grantor under this Easement Agreement or arising solely from the willful ornegligent acts or omissions of a Grantor Party, provided that Grantor shall not be required to indemnity or hold Grantee harmless from and against any loss, claim, demand, costs, expense, lien, fine, penalty, liability,judgment or damages arising from the 12. Counterparts. This Easement Agreement may be executed in any number of counterparts, eachofwhich: shalll be deemed an original, but all ofwhich when taken togethershall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect oft the signature(s) thereon provided such signature pageisattached to any othero counterpart: identical thereto excepthaving additional signaturepages  willful or negligent acts or omissions ofa Grantee Party.  executed by other parties to this Easement. Agreement attached thereto.  13. Cost of Enforcement. Ifany legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofits costs of suit, including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 374    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first above-  written.  Grantor: Taylor Fresh Food, Inc., a Delaware corporation  By: Name: Title:  Anotary public or other officer completing this certificate verifies only thei identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness,  accuracy, or validity oft that document.  STATE OF COUNTY OF On  before me,  Notary  Public, personally appeared  who proved to me on the basis of satisfactory evidence to bei thej person(s) whose name(s) is/are subscribed tot the within instrument and acknowledged toi me that he/she/they executed the same inl his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument thej person(s) or the entity upon behalf ofwhich the person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws of the State of  that  the foregoing paragraph is true and correct. WITNESS my hand and official seal.  (Seal)  4  Packet Pg. 375    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first above-  written.  Grantee: CityofGonzales  By: Name: Title:  Carmen Gill City Manager  An notary public or other officer completing this certificate verifies only thei identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness,  accuracy, or validity oft that document.  STATE OF COUNTY OF On  before me,  Notary  Public, personally appeared  who proved to me on the basis of satisfactory evidencei tol bei the person(s) whose name(s): is/are subscribed to the within instrument and acknowledged toi me that he/she/they executed the same inl his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws of the State of  that  the foregoing paragraph is true and correct. WITNESS my hand and official seal.  (Seal)  5  Packet Pg. 376    EXHIBIT! A  Legal Description oft the Easement Area  A-1  Packet Pg. 377    Grant Deed of APN 223-81-015  Easement #3 - Sanitary Sewer Easement Taylor Fresh Foods, Inc. to City of Gonzales  LEGAL DESCRIPTION  Situate within the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of Lot 4 of Tract No. 1455, Vista de Santal Lucia, Gonzales Agricultural Business Park, as said Loti is shown on the mapr recorded in' Volume 23 of Cities and Towns at Page 19, Official Astrip of land 151 feet in width, lying 7.51 feet on either side of thet following described centerline: COMMENCING at the northwesterly corner of said Lot 4; thence along the northerly line of said Lot4 4, North 52° 27'02" East, 31.12 feet to the POINT OF BEGINNING; thence departing said northerly line,  Records of said County, being particularly described as follows:  crossing said Lot 4  1) South 38° 28'11" East, 103.34 feet; thence  2) South 39° 00' 04" East, 269.331 feet to a point on al New 15 foot wide Public Utility Easement and  the end of said strip.  Containing an area of5 5,590 square feet, more or less.  This legal description was prepared by: dyakp Lynn A. Kovach P.L.S.5321 Dated: September19,2024  LAND AE - CAL  A-2  Packet Pg. 378    EXHIBITB Site Plan of] Easement. Area  B-1  Packet Pg. 379    2-8  090-120-020 Ndv uuDyw  61-180-E2 Jed End buysng apim, OL  A  EAd epim SLA MON  Packet Pg. 380    RECORDING REQUESTED BY AND WHEN RECORDED: MAILTO: CITY OF GONZALES Public Works Department POBOX647 Gonzales, CA 93926  Nol Recording fee - Government Code $27383  Space above this line for Recorder's use  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by Taylor Fresh Foods, Inc, al Delaware corporation ("Grantor"), for the benefit of the City of Gonzales, an incorporated City ("Grantee"), with reference to the following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as. APN 223-081-015, in B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement Purpose") a portion of the Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the site plan attached NOW, THEREFORE, in consideration oft the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency ofwhich arel hereby  the County ofMonterey, State of California.  hereto as Exhibit B.  acknowledged, Grantor hereby declares as: follows:  1.  Easement. Grantor hereby grants to Grantee a permanent non-exclusive easement to  the Easement Area for the Easement Purpose; and for the further purpose of ingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with ai right of way upon, over, under, through and across the Property to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill or other structures over the hereinafter described Easement Area.  2.  Compensation. Grantor acknowledges receipt of compensation from Grantee for the  Easement in accordance with the value of the property per the Appraisal Report dated August 16, 2024. As additional consideration for the Grant of Easement, Grantor and Grantee have executed a  Memorandum ofUnderstanding of even date herewith.  3.  Maintenance. Grantor hereby grants to Grantee aj perpetual non-exclusive easement  fori maintenance and: repair purposes over thel Easement. Area and such portions of the Property as are  1  Packet Pg. 381    reasonably necessary for such maintenance and repair. Grantee shall be responsible for all costs  associated with the Grantee's use ofthe Easement.  4. No Gift or Dedication. Nothing contained in this Easement Agreement shall be deemed tol be a gift or dedication of any portion ofthel Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted in this Easement Agreement shall be strictly limited to and for the purposes herein expressed withr respect toj private property solely fort thel benefit ofthej parties and their respective tenants, invitees  and licensees.  5. Mortgagee Protection. No breach or violation of this Easement Agreement or oft the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing al loan made in good faitha and for value withi respect to any portion ofthe. Property, but all oft the provisions oft this Easement Agreement shall bel binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed oft trust) who acquires titlei to the Property or any portion thereof, by foreclosure, trustee's sale, deed in lieu of foreclosure, or  otherwise.  6. Notice of Material Issue. Grantor shall promptly notify Grantee in writing of any  material issue or fact that may affect thel Easement. accordance with the laws of the State ofCalifornia.  7.  Governing Law. This Easement Agreement shall be governed by and construed in  8. Successors and Assigns: Covenants Running with the Land. This Easement Agreement is binding upon and shall inure to the benefit oft thej parties and their respective successors and assigns, tenants, invitees and licensees. All oft the provisions oft this Easement Agreement shalll be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. oft the California Civil Code. invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability of the other provisions shall not be affected or impaired thereby and (b) the parties hereto shall endeavor in good faith negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that oft the invalid or unenforceable provisions.  9.  Severability. Ifa any provision oft this Easement Agreement is prohibited or held to be  10. Remedies. In the event of any breach or threatened breach of any provision of this Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to join such breach or threatened breach and to recover damages for any such breach. Thei remedies] permitted ora availablej pursuant to thej provisions ofthis Easement Agreement shalll be cumulative and in addition  to any rights or remedies available at law ori in equity.  2  Packet Pg. 382    11. Indemnification,  (a) Grantee shall indemnify, defend and hold Grantor, and its officers, employees  and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, lability,judgment or damages arising solely  from the willful or negligent acts or omissions ofa Grantor Party.  (b) Grantor shall indemnify, defend and hold Grantee, and its officers, affiliates,  contractors, employees and agents (collectively, "Grantee Parties") harmless from and against and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments any and damages resulting directly from or Grantor's exercise of any rights retained by Grantor under this Easement Agreement or arising solely from the willful or negligent acts or omissions of a Grantor Party, provided that Grantor shall not be required to indemnity or hold Grantee harmless from and against any loss, claim, demand, costs, expense, lien, fine, penalty, liability, judgment or damages  arising from the willful or negligent acts or omissions ofa Grantee Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all ofwhich when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature is attached to any other counterpart: identical thereto except having additional signature pages executed page  by other parties to this Easement Agreement attached thereto.  13. Cost tof Enforcement If any legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofit its costs ofs suit, including, but not  limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 383    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first above-  written.  Grantor: Taylor Fresh Food, Inc., a Delaware corporation  By: Name: Title:  Anotary public or other officer completing this certificate verifies only thei identity of the individual who signed the document to which this certificate is attached, and not the truthfulness,  accuracy, or validity of that document.  STATE OF COUNTY OF On  before me,  Notary  Public, personally appeared  who proved to me on the basis of satisfactory evidence tol bet the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in] his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument thej person(s) or the entity upon behalfo ofwhich the person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws oft the State of  that  the foregoing paragraph is true and correct. WITNESS my hand and official seal.  (Seal)  4  Packet Pg. 384    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: City ofGonzales  By:  Name: Carmen Gil Title: City Manager  Anotary public or other officer completing this certificate verifies only the identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity ofthat document.  STATE OF CALIFORNIA COUNTY OF On_ personally appeared  SS.  2024 before me,  Notary Public,  who proved to me on1 thel basis ofs satisfactory evidence  tol be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s). on the instrument the person(s), or the entity upon behalf of which the  person(s) acted, executed the instrument. that the foregoing paragraph is true and correct.  Icertify under PENALTY OF PERJURY under the laws of the State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 385    EXHIBIT A  Legal Description of thel Easement Area  A-1  Packet Pg. 386    Grant Deed of  Easement #1 - Public Utility Easement APN 223-81-014 and 223-081-015 Taylor Fresh Foods, Inc. to City of Gonzales LEGAL DESCRIPTION  Situate within the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of Lots 3 and 4 ofTract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as saidI lots are: shown on the map recorded in' Volume 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described as follows:  Astrip of land 151 feet wide lying northwesterly ofa and contiguous to an existing 10f foot wide Public Utility Easement (P.U.E.) as shown on said map recorded in' Volume 23 of Cities and Towns at Page  19, of Official Records ofs said County. Containing an area of 6,810 square feet, more or less.  This legal description was prepared by: d-akps Lynn A. Kovach P.L.S.5321 Dated: July30,2024  LAND   - OF CALI    A-2  Packet Pg. 387    EXHIBITI B Sitel Plan of] Easement Area  B-1  Packet Pg. 388    2-8  5  Packet Pg. 389    GRANT OF TEMPORARY EASEMENT  THIS GRANT OF TEMPORARY EASEMENT (this Temporary  Easement") is made as of  2024, by Taylor Fresh Foods Inc., a Delaware  corporation ("Grantor"), for the benefit of the City of Gonzales, an incorporated City  ("Grantee"), with reference to the following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as APN No. APN223-081-014 and APN223-081-015, in the County ofMonterey, State ofCalifornia. B. Grantee has requested a temporary easement to perform the activity, more particularly described in Exhibit A (the "Improvements"), attached hereto and incorporated  herein by reference. C.  Grantee has requested temporary access to a portion of the Property more  particularly described on Exhibit B attached hereto (the Temporary Easement Area"), and  depicted on the site plan attached hereto as Exhibit C C.  NOW, THEREFORE, in consideration of the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency  of which are hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a temporary easement to the  Temporary Easement Area for the Improvements; and for the further purpose ofi ingress, egress andj passage across with all thei necessarymaterials, tools, supplies, and other equipment related to the Improvements, together with a right of way upon, over, under, through and across the  Property to access the' Temporary Easement. Area (the Easement").  2.  Term. Thet term ofthis Temporary Easement shall commence whenj performance  of the Improvements begins, no earlier than November 1. 2024, and shall automatically terminate upon completion of the Improvements or no later than May1.2 2025. Grantee shall provide Grantor at least twenty-four (24) hours' notice prior to performance of any Improvements. Grantor shall grant norights inconsistent with thei reasonable exercise by Grantee  ofits rights under this Temporary Easement.  3. Cost. The Grantee shall be: responsible for all costs and expenses associated with performance of the Improvements, except for those cost or expenses resulting from the sole negligence or willful: misconduct ofthe Grantor. Seel Exhibit. A forother exceptions, ifany. Temporary Easement in accordance with the. Appraisal Report, updated August 16, 2024. Value of the Temporary Easement was predicated on an appropriate land rent for the Temporary Easement area and duration. Total compensation for the Temporary Easement is $9,235.00,  4.  Compensation. The Grantee shall compensate the Grantor for the use of the  nine thousand, two. hundred and thirty-five dollars and zero cents.  Packet Pg. 390    5.  Performance ofthe Improvements. Time is oft the essence with respect to the  performance of the Improvements, and to the extent reasonably feasible, the Grantor shall  diligently pursue completion ofthe Improvements.  6.  Safety, Grantee shall erect and maintain on thel Property, as: necessary, reasonable  safeguards for safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and notifying owners and  users of adjacent sites and utilities.  7.  Revocable Licenses and Termination. This Temporary Easement shall be  revocable by the Grantor only ift the Grantee fails to comply with any provision herein. Revocation may not occur until Grantor has provided the Grantee with written: notice oft the alleged breach and at least ten (10) days to cure. During said 10-day period to cure, the Parties shall meet and confer regarding the alleged breach and potential cure. Notice to the Grantee of any alleged breach shall be sent to Patrick Dobbins, Public Works Director, 1474th Street, Gonzales, CA. In the event this Temporary Easement is revoked, the Public Utilities Easement and Sanitary Sewer Easement of  even date herewith shall also terminate.  8.  Restoration ofthe) Property. As part ofthel Improvements to thel Property, Grantee  shall, atits own costand expense, restoret thel Propertyto a substantiallysimilarcondition in which ity was prior to Grantee's pertormance oft the improvements. In the event that Grantor terminates this Temporary Easement for any reason other than a Grantee default and at any time after performance of the Improvements has commenced, but prior to the completion of such Improvements, the Grantees shall notl be obligated torestoret thel Property as described herein. no termination of this Temporary Easement shall release the parties from any liability or obligation hereunder resulting from any acts. omissions or events happening prior to the  9.  ContinuingLiabilitvy, Exceptasotherwise set forthi int thisTemporary: Easement,  termination of this Temporary Easement and restoration ofthe Property.  10. Counterparts. This Temporary Easement may be executed in one or more counterparts, each ofwhich shall be deemed an original but all ofwhich together shall constitute IN WITNESS WHEREOF, the Parties hereto have executed this Temporary Easement on  one and the sameinstrument. the date first written above. CITY OF GONZALES  OWNER: Taylor Fresh Foods, Inc.  By:  By:  Carmen Gill, City Manager  2  Packet Pg. 391    EXHBIT, A Description of Work  The scope of work is as follows:  Installation, testing and commissioning of new 12-inch/24-inch PVC below grade gravity sewer pipelines, manholes, and appurtenances to support the City's upcoming  Industrial Wastewater Treatment Program.  Noti included:  1. Not Applicable  A-1  Packet Pg. 392    EXHIBITB  Legal Description of thel Easement. Area  B-1  Packet Pg. 393    Grant Deed of  Easement #2 Temporary Construction Easement APN 223-81-014, 223-081-015 and 223-81-016 Taylor Fresh Foods, Inc. to City of Gonzales  LEGAL DESCRIPTION  Situate within the Rancho Rincon del lal Punta del Monte, City of Gonzales, Monterey County, State ofC California, being a portion ofl Lots 3 and 4 ofTract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lots are: shown on the mapi recorded in' Volume 23 of Cities and Towns at Page 19, Official Records ofs said County, being particularly described as follows:  COMMENCING at the northerly corner: said Lot 4; thence alongt the northerly line of said Lot 4, North 52'2 27'02" East, 6.12 feet to the POINT OF BEGINNING; thence continuing along said northerly line 1) North 52° 27' 02" East (shown as S! 50'57'21" W on said map), 50.01 feet; thence departing said  northerly line crossing said Lots 3 and 4 2) South 38° 28' 11" East, 102.83 feet; thence 3) South 39° 00' 04" East, 254.47 feet; thence 4) North! 51°18'5 56" East, 400.56 feet; thence 5) South 42° 48' 28" East, 16.461 feet; thence South 51°31'15" West, 451.661 feet; thence 7) North 39° 00'0 04" West, 269.22 feet; thence  North 38° 28'1 11" West, 103.86 feet toi the POINT OF BEGINNING.  Containing an area of 0.57 acres, more or less. This legal description was prepared by: dg-akys Lynn A. Kovach P.L.S.5321 Dated: August5,2024  OVAL LAND  o * OF CALV  B-2  Packet Pg. 394    EXHIBITC Site Plan of] Easement. Area  C-1  Packet Pg. 395    2-0  090-120-000 Ndv uuDw  Ind epim SI MON  61-18D-EZ10d EAd buysixg epim,OL  (co)  Packet Pg. 396    RIGHTOE ENTRY AGREEMENT  This Right of Entry Agreement ("RIGHT OF ENTRY") is entered in this_ day of  2024, by and between Taylor Fresh Foods. Inc., al Delaware (the "OWNER") and the City of Gonzales ("CITY", "OWNER and CITY are  corporation  collectively referred to as' "Parties").  RECITALS  A.  WHEREAS, the OWNER is the owner in fee ora a duly authorized agent (Rental or  Property Manager) of that certain real property commonly referred to as APNI No. 223-081-039,  Address: 100 Puente Del Monte Ave. Gonzales. CA, (the* "Property").  B. WHEREAS, CITY desires to obtain the OWNER's permission to enter onto the Property, on al temporary basis, toj perform the activity, morej particularly described in Exhibit "A" (the OWNER will allow CITY to enter the Property, on a temporary basis, for the purpose of performing  MPROVEMENIS), attached hereto andi incorporated! herein by reference.  C. thel IMPROVEMENTS.  WHEREAS, the Parties wish to enteri into this RIGHT OF ENTRY whereby the  NOW, THEREFORE, the OWNER and CITY do hereby agree as follows:  AGREEMENT  1.  RIGHT OF ENTRY. In consideration oft the City'sp performance oft the  IMPROVEMENTS, the OWNER hereby grants to CITY andi its agents, employees, contractors and subcontractors the temporary right to enter onto the Property for the purpose of performing the IMPROVEMENTS and to take any other reasonable actions necessary for performance of 2. Term. The term oft this RIGHT OF ENTRY shall commence when performance oft the IMPROVEMENTS begins, and shall automatically terminate upon completion of the IMPROVEMENTS. CITY shall provide OWNER at least twenty-four (24). hours' advance written notice prior toj performance ofany IMPROVEMENTS. OWNER shall grant noi rights inconsistent with thei reasonable exercise by CITY ofi its rights under this RIGHT OF ENTRY. This Right of Entry shall terminate in the event CITY fails to complete the Improvements on or before. July 31, 2025. performance of the IMPROVEMENTS, except for those cost or expenses resulting from thei negligence  thel MPROVEMENTS.  3. 4. IMPROVEMENTS. 5.  Cost. The CITY shall be: responsible for all costs and expenses associated with  orw willful misconduct oft the OWNER. Seel Exhibit A for other exceptions, ifany. performance of the IMPROVEMENTS, the CITY shall diligently pursue completion of the  Performance of the IMPROVEMENTS. Time is oft the essence with respect tot the Safety. CITY shall erect and maintain on thel Property, reasonable safeguards for  safety and protection, including reasonable barriers orj posting of danger signs and other warnings  Packet Pg. 397    against hazards, promulgating safety regulations, and notifying owners and users of adjacent sites any design professionals', mechanics', materialmens', contractors', or subcontractors' liens with regard toj performance oft thel IMPROVEMENTS. The CITY agrees tol hold the OWNER harmless for any loss or expense, including reasonable attorneys' fees and costs, arising from any such liens which and against any and all costs, claims, damages or liabilities, including without limitation property damage and personal injury, arising out of or relating to the CITY's entry onto the Property and work performed under this RIGHT OFI ENTRY, except where caused by the joint or several negligence or willful misconduct oft the OWNER or OWNER's agents, representatives, and/or invitees.  and utilities. 6.  Liens. CITY shall not permit tol bej placed against the Property, or any part thereof,  might be filed against the Property.  7.  Indemnification. The CITY shall indemnify, defend, and hold OWNER harmless from  8.  Compliance with Laws/Permits. CITY shall, inj performance of the  IMPROVEMENTS undertaken pursuant to this RIGHT OF ENTRY, comply and cause: its contractors, agents and employees to comply with all federal, state and local laws, statutes, orders, ordinances, rules, regulations, plans, policies and decrees. Without limiting the generality of the foregoing, CITY, ati its sole cost and expense, shall obtain any and all permits and approvals which: may be required by any law, regulation or ordinance for thel IMPROVEMENTS CITY desires to conduct or have  conducted pursuant to this RIGHT OF ENTRY.  9.  Inspection. Prior to commencement of the IMPROVEMENTS, the CITY and its  representatives, including employees, agents, contractors, subcontractors and independent contractors, may enter and inspect thel Property or any portion thereof or any IMPROVEMENTS thereon at any time and from time to time at reasonable times asi isi necessary for thej performance of the IMPROVEMENTS, subject to the terms and conditions of this RIGHT OFI ENTRY, and provided that 10. No Real Property Interest. It is expressly understood that this RIGHT OF ENTRY does not: in any way whatsoever grant or convey any permanent easement, lease, fee or other interest in thel Property to CITY. This RIGHT OF ENTRY is not exclusive and the OWNER specifically reserves the right to grant other rights of entry within the vicinity ofthel Property to the extent such entry toi not frustrate thej purpose of this RIGHT OF ENTRY or otherwise limit CITY'sability to 11. No Waiver. Iti is understood and agreed by the CITY and OWNER that performance oft the IMPROVEMENTS: is a one-time circumstance; does not create an ongoing maintenance obligation or any other obligation upon the CITY; and does alter or waive the City Municipal Code or any other applicable state or local laws, rules or regulations with respect to ownership, maintenance, or 12. Attorneys' Fees. Int the event ofa dispute between the parties with respect to thet terms ord conditions of this RIGHT OF ENTRY, thej prevailing party shall be entitled to collect from the other itsr reasonable attorneys' fees as established by the judge or arbitrator presiding over such dispute. 13. Revocable Licenses and Termination. Subject to Section 2, above, this RIGHT OF ENTRY shall bere revocable by the OWNER onlvi if the CITY fails to comply with any provision herein. Revocation may not occur until OWNER has provided the CITY with written notice oft the alleged breach and at least ten (10) days to cure. During said 10-day period to cure, the parties hereto shall meet and confer  241 hour advance written notice is given to OWNER.  perform the IMPROVEMENTS.  repair ofthe water distribution system.  2 Packet Pg. 398    regardingi the alleged breach andj potential cure. Notice to the CITYofany alleged breach shalll be sent to Patrick Dobbins. Public Works Director, 1474th Street, Gonzales, CA. lin the event this Temporary Easement is revoked, the Public Utilities Easement and Sanitary Sewer. Easement of even datel herewith shall also terminate. 14. Restoration oft the Property. As part oft thel IMPROVEMENTS tot the Property, CITY shall, at its own cost and expense, restore the Property to a substantially similar condition in whichi itwas prior to CITY's performance oft the IMPROVEMENTS; in the event that OWNER terminates this RIGHT OF ENTRY for any reason other than a CITY default and at any time after performance of the IMPROVEMENTS has commenced, but prior to the completion ofs such IMPROVEMENTS, the CITY shall Lnot be obligated to restore thel Property as described herein, termination of this RIGHT OF ENTRY shall release the parties from any liability or obligation hereunder resulting from any acts, omissions or events happening prior thet termination of this RIGHT counterparts, each of which shall be deemed an original but all ofwhich together shall constitute one  15.  Continuing Liability. Except as otherwise set forth in this RIGHT OF ENTRY, no  OF ENTRY and restoration of the Property.  16. and the same instrument. the date first written above.  Counterparts. This RIGHT OF ENTRY may be executed in one or more  IN WITNESS WHEREOF, the Parties hereto have executed this RIGHT OF ENTRY on  CITY OF GONZALES  OWNER (or Agent)  By:  By: Its:  Carmen Gil, City Manager  3 Packet Pg. 399    EXHIBIT "A" DESCRIPTION OF WORK  The scope ofv work is as follows:  1. Access private property to construct 12-inch sewer lateral and diversion manhole in 2. Work to be done by licensed, insured contractors as part oft the City project to install the Industrial Wastewater Conveyance Pipeline to the future Industrial Wastewater 3. Condition will be documented and preserved ori repaired if damaged by contractor. 4. Some restoration of disturbed areas that may include restoration of hardscape, landscape, irrigation system, etc. as needed. This is not a guarantee of full satisfaction oft the property owner in all details oft the restoration, but in a reasonable attempt to: restore the  accordance with the drawings attached herein.  Treatment Facility.  location to safe and functional use. 5. Tie-ins will be conducted on Sunday.  Noti included:  6. Any work beyond the scope of work as described.  4  Packet Pg. 400    0000000  00  Packet Pg. 401    GLV380 ONVISI  Packet Pg. 402    REVISED APPRAISAL OF:  CIMYOFGOMAIE/TAIOR FRESH FOODS PARTALTAKEF-KATHERNE ST INDUSTRIAL LOTS GONZALES, MONTEREY COUNTY APN2O10N4a5a.0169  REQUESTED By:  Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  APPRAISAL ASOF:  May 8, 2024  APPRAISED By:  John' W. Piini, MAI Greg Piini, MAI 263 Lincoln Avenue Salinas, CA 93901  Packet Pg. 403    PIINI REALTY  August 16, 2024 Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA93926  Re: Appraisal Report - Taylor Fresh Foods Katherine Street, Gonzales  Dear Mr. Dobbins:  Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as to the market value of one permanent Public Utility Easement (PUE), one permanent Sanitary Sewer Easement (SSE), and one Temporary Construction Easement (TCE) on three undeveloped industrial lots located within the Gonzales Business Parkand on the north side of Katherine Street, Gonzales, Monterey County, California. The lots are owned by Taylor Fresh Foods and are identified as Assessor's Parcel Numbers (APNS/223-081-014, 015 and -016. The three lots have a combined area of 6.04t gross acres. The PUE is a 15-foot-wide easement that encumbers 6,810t square feet. The SSE is a 15-foot-wide easement that encumbers 5,590t square feet that is situated near an existing 20-foot-wide SSE. The TCE 5a16510-S0fotwide temporary easement that adjoins thel PUE and spans the proposed SSE. The TCE encumbers approximately 0.57t acres (24,829t square feet). These easements are being purchased by the Cityo of Gonzales fora ana agricultural-industral wastewater conveyance pipeline that is part of Gonzales' Based on1 thei inspection oft the property and thei investigations and analyses undertaken, we have formed the opinion that as of May 8, 2024, and subject tot the assumptions and limiting conditions set forthi ini this  Industrial Wastewater Recycling Facility (IWRF) project.  report, the value conclusions are as follows: Fair market value of thep part taken as part of the whole  $79,827 $7,169 $0 $7,169 $9,235 $96,231  Damages & special benefits Damages Less:S Special benefits Subtotal Value oft theT TCE Total value of the take  263 Lincoln Ave., Salinas, CA 93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 404    Mr. Patrick Dobbins  August. 16, 2024  Re: Appraisal Report - Taylor Fresh Foods  Pagei ii  The appraisal report that follows consists of 39 pages and setsi forthi thei identification oft the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results oft the investigations and analyses, and the reasoning leading tot the value conclusions.  Respedtfulysubmites, E  W. Piini, MAI Certified General Real Estate Appraiser State of California,  -Greg  Certified, Genéral Real Estate Appraiser State of California, BREAI No. AG044270  AG005214  A4  BREA No.  Packet Pg. 405    TABLE OFCONTENTS  Transmittal. Letter. Table of Contents. Introduction. Identification Purpose of the Appraisal. Title. Property History Property Rights Appraised. Client of the Appraisal. Intended Users. Intended Use oft the Appraisal.. Effective Date of the Appraisal. Date of Report. Report Format Exposure Time. Environmental Hazards.. Scope of Work. Regional Description. Property Description. Aerial Photograph. Assessor's Parcel Map Subject Photographs.. Location. Access. Land Area.. Utilities.. Building Improvements Hazards.  ili  12 12 12 13 14 14 14 14 15 15 Page iii  Appraisal Report - Taylor Fresh Foods  Packet Pg. 406    Assessed Valuation & Taxes. Land Use Policies Highest & Best Use. Valuation Comments.  15 15 16 17 27 30 30 31 32 33 34 36  Fair Market Value of the property before the take.. Fair Market Value oft the Part Taken... Fair Market Value of the Remainder as Part of the Whole.. Fair Market Value oft the Remainder. Before Considering Special Benefits. Fair Market Value of the Remainder Considering Special Benefits.. Fair Market Value of the Temporary Construction Easement.  Compensation. Summary. Certifications. Limiting Conditions Addendum  Legal Description and Maps oft the Permanent and Temporary Easements  Qualificatons of the Appraisers  Appraisal Report-7 Taylor Fresh Foods  Page iv  Packet Pg. 407    INTRODUCTION  IDENTIFICATION  This appraisal involves a partial-take valuation oft three undeveloped industrial lots owned by Taylor Fresh Foods and located within the Gonzales Business Park. The lots are located on the north side of Katherine Street, and are identified as Monterey County APNs 223-081-014, -015 and -016. The gross land area of The partial take consists ofi) a permanent PUE of approximately 6,810t square feet, ii)a a permanent SSE of approximately 5,590t square feet, and ili) a TCE of approximately 24,829+ square feet. The public agency involved in this taking is the City of Gonzales as part of a project referred to as the Gonzales  thes subject property before the takei is 6.04t acres.  Industrial Wastewater Recycling Facility (IWRF) project.  PURPOSE OF1 THE APPRAISAL  The purpose oft the appraisal ist to estimate the "fair market value" oft the real property in accordance with California eminent domain civil procedure codes. As per California law the appraisal will address the  following:  1. thei fair market value of the property before thet take; 2. thei fair market value of the part taken; 3. thei fair market value of the remainder as part of the whole; 4. thet fair market value of the remainder before considering special benefits; and 5. thei fair market value of the remainder considering special benefits. For the purpose oft this appraisal, fair market value is defined as follows:  Fair Market Value Defined  Thej fair market value oft the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity. for so doing, nor obliged to sell, ando a buyer, being ready, willing, and able to buy but under no particular necessity forsod doing, each dealing with the other withf fullk knowledge ofallt the uses and purposes  for which the property is reasonably adaptable and available.1  ( California Code of Civil Procedure - CCP $1263.320 (Amended by Stats. 1992, Ch. 7, Sec. 2. Effective January 1,  1993).  Appraisal Report- - Taylor Fresh Foods  Page 5  Packet Pg. 408    TITLE  According to the Monterey County Assessor's Office, title is vested as follows:  Taylor Fresh Foods, Inc.  PROPERTY! HISTORY  The property was purchased by the current owner on. January 19,2018. APNs 223-081-014 and -015 were purchased from MJP Partners for $1,737,000 (Document No. 2018002279) while APN: 223-081-016 was purchased from Manhattan Associates for $868,500 (Document No. 2018002290). The property has not sold since these purchases and there have been noi transfers of ownership of the subject property within the past five years. The property is not currently offered on the open market, and we are not aware of  any purchase options and/or agreements affecting the property. The property rights appraised is the fee simple estate.  PROPERTY RIGHTS APPRAISED Fee Simple Estate Defined  Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police  power, and escheat. 2  CLIENT OF THE APPRAISAL INTENDED USERS  The client of this appraisal is the City of Gonzales.  The intended users are the client and thet fee owner of the property. The appraisers are not responsible for any unauthorized use of this report and are not responsible to any third-party users.  INTENDED USE OF THE APPRAISAL  The intended use of this appraisal is fort the client's use pertaining to the purchase ofi three easements on  the subject property as part of the IWRF project. EFFECTIVE DATE OF THE APPRAISAL  This appraisal assignment represents a current appraisal in which the effective date of the appraisal and  the valuation conclusion apply as of May 8, 2024.  2Dictionary of Real Estate Appraisal-6 6th Edition. Appraisal Institute, 2015, p.90.  Appraisal Report - Taylor Fresh Foods  Page 6  Packet Pg. 409    DATE OF REPORT REPORT FORMAT  This appraisalassignment was conducted from May to August of 2024.  The report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated  above. ExPOSURETIME  The term "exposure time" is defined as  The estimated length of time the property interest being appraised would have been offered on the market priort to the pornetcolconsummaton ofasale at market value on the effective date  of the appraisal.  The industrial market at the north end oft the Salinas Valley is very strong with good demand and few offerings at any given time. As a result, vacant industrial lots and good improved facilities tend to sell within at few months of being offered on the open market. Some offerings require an exposure time in excess of six months; however, these are generally overpriced and/or suffer from significant obsolescence. The subject property is located within a desirable industrial park and it is estimated that demand would be strong if it were offered on the open market. An exposure time of3t to 6 months is  considered reasonable and applied int this analysis.  ENVIRONMENTAL HAZARDS  An environmental assessment report was not provided and we are not qualified to make such a report and/or environmental assessment. Without the benefit of an environmental assessment or hazardous material assessment report, this appraisal is predicated on the extraordinary assumption that there are no environmental conditions that adversely affect the value of the property. Therefore, this is an  "unimpaired valuation." Extraordinary, Assumption Defined  An assgnment-speclic assumption as of the effective date regarding uncertain information used ind an analysis which, iffound to bej false, could alter the appraiser's opinions or conclusions. 4  3lbid.p p.83. 4lbid.p.4.  Appraisal Report- - Taylor Fresh Foods  Page 7  Packet Pg. 410    SCOPE OF WORK  We appraised the subject easements for1 the City of Gonzales in May of 2024. This report is an update to thel May 2024 report to only reflectac changei int thet takeareas. Fort the May 2024 assignment, the property was inspected on May 8, 2024. The inspection was from the road frontage with the scope of observing the layout and general characteristics of the property. In addition to our inspection, we reviewed parcel The gross land area of the property is obtainedi fromi the Assessor's Parcel Map. The land areas within the proposed takes are obtained from the draft legal descriptions and take exhibits prepared by Polaris Land The valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records, Multiple Listing Service (MLS)data, on-line subscription services such as CoStar andl LoopNet, real The results oft the investigations and the analyses conducted are presented in this appraisal report, and  maps, flood maps, aerial photographs and zoning maps oft the property.  Surveying, copies of which are included in the addendum oft this report.  estate appraisers, and brokers.  were prepared by John Piini, MAI, and Greg Piini, MAI.  Appraisal Report- - Taylor Fresh Foods  Page 8  Packet Pg. 411    REGIONAL DESCRIPTION  REGIONAL MAP  vorina  Google.  LOCATION! MAP  Gonzales City! Limits Boundary Subject Property Proposed Conveyance Line Futurel IndustrialWastewater Recycling Facility  Gonzales  Appraisal Report-T Taylor Fresh Foods  Page9  Packet Pg. 412    MONTEREY COUNTY  Monterey County is oriented in a north to south direction parallel to the Pacific Ocean. It is bounded on the north by Santa Cruz County, on the: south by San Luis Obispo County, ont the east by San Benito, Kings, The largest of the central coast counties, Monterey County has approximately 100 miles ofc coastline along the Pacific Ocean and averages 30 miles in width. The county contains 3,324t square miles or 2,127,360t About 439,000 people currently reside inl Monterey Countyas ofthe 2020Census, whichisa5 5.7%increase from the 2010 Census estimate of about 415,000. The majority oft the county's population is located on the Monterey Peninsula and in the greater Salinas area. Over the past several decades, Salinas and the smaller Salinas Valley towns experienced the majority of the county's growth, as the price of land and housing is relatively affordable compared tot the Monterey Peninsula and the neighboring Santa Clara and Santa Cruz Counties. During this same period, the population on the Monterey Peninsula remained relatively stable duei to al limited: supply of land that is zoned and suitable for development. The physical and economic characteristics of the county are divided primarily between the Monterey Peninsula and Salinas Valley. The Monterey Peninsula communities of Pebble Beach, Carmel, Pacific Grove and Monterey: are tourist destinations fort the northwesterly portion. Toi thes south of thel Monterey Peninsula is the world-renowned Big Sur Coast. Ont the eastern side of the county lies the Salinas Valley,  and Fresno Counties and ont the westi is thel Pacific Ocean.  acres.  one oft the chief vegetable-producing regions ini the United States.  Salinas Valley  The Salinas Valleyi is ai fertile agricultural region bounded to the east by the Gabilan Mountain Range and tot the west byt the Santa Lucia Mountain Range. The valley begins at San Ardo, and widens and stretches This valley is one of the premier fresh vegetable growing regions int the country and a majority of the salad greens consumed ini the United States are grown here. Strawberries, head lettuce, leafl lettuce, broccoli, celery, artichokes and a variety of other vegetable crops provide Monterey County with approximately $4.6 billion in gross sales. Due to the intensity and the variety of crops grown, the Salinas Valley is Within the 100-mile stretch oft the Salinas Valley are individualfarming districts, distinguished not only by location, but by farming characteristics associated with soil, climate and/or water. East-to-west, soil quality provides the distinction, as thes soils ont the valley floora are, fort the most part, fertile clay and loamy soils that are well suited for growingav variety of fresh vegetable crops. Along thet foothills of the Gabilan  approximately 100 miles tot the Monterey Bay, near Castroville.  nicknamed "America's Salad Bowl."  Appraisal Report - Taylor Fresh Foods  Page 10  Packet Pg. 413    Range (east side of the valley) and the Sierra de Salinas Range (west side) the soils are generally characterized! by decomposed granite (DG) soils that formed in alluvium from graniticands schistose rocks on alluvial fans and terraces. These soils are typically well-drained and suitable for growing a variety of crops; however, they generally require al higher degree off farm management as compared to the soils on North-to-south, climate plays a significant role as the north end of the valley has a cool coastal climate, whereas the south end oft the valleyi is warmer. and windier during the growing season. Due primarily to climate, agricultural rents are higher at the north end of the Salinas Valley as compared to the farmland int the central and southern portion of the valley. In recent years though, this gapi tightened due in part to an expansion ofs seed varieties, enhancement in irrigation practices andi the growth in thei food service segment of the produce industry which has increased the demand for leafy green vegetables such as  the valley floor.  spinach and leaf lettuces that have shorter growing periods.  GONZALES  Gonzales is centrally located within the Salinas Valley and is approximately 15 miles south of the City of Salinas. Thet town has aj population of 8,439 peoples. Over the past several decades, thet town has grown as its proximity to! Salinas andi its lower relative price of housing has brought ani influx of commuter-based This proximity to Salinas has also resulted in a recent expansion of the industrial district. Salinas has historically been the headquarters of the agricultural industry; however, as the availability of vacant land within Salinas has become exhausted, several agricultural companies have expanded south into the Gonzales Business Park. The Gonzales Business Park (also known as the Santal Lucia Agricultural Industrial Park) is an 81-acre development that begani in the mid-2000s. The park was originally divided into 16 lots Taylor Farms, Grower's Express and Pure Pacific Organics have all built vegetable processing facilities in this park over the past decade, and Papé Material Handing recently opened a new facility in 2021. Additionally, Mann Packing built a vegetable processing facility in 2018 immediately adjacent to the park Currently, there are eight lots within the park that remain undeveloped that have a combined area of  residents; however, thet town remains an agricultural-based. community.  that ranged in: size from 2.01 to12.7a acres.  but within the same industrial district.  31.29tacres.  SU.S. Census Bureau. 2022 Population! Estimate Program (PEP).  Appraisal Report- - Taylor Fresh Foods  Page 11  Packet Pg. 414    PROPERTY DESCRIPTION  AERIAL PHOTOGRAPH  Ctylimits  Katherine Street  GoogleEarth ASSESSOR'SPARCEL MAP PARCFIDUEST 9  TAX CODE AREA 08)  COUNTY OF MONTEREY ASSESSOR'S MAP BOOK 223 PAGE 08-1  RGDR SBARASS 06-1  o  20/02  SCALE;  @) E .  01-2 @  PARCI  20/02  de 15  @  @ PAR D 21p87  20/02 r 12-22-05  01-2 CONZALES RIVER  20/02 TRACT VISTA DE NO. SANTA 1455 LUCIA RINÇON DE LA PUENTE  DEL MONTE RANCHO  Appraisal Report-1 Taylor Fresh. Foods  Page 12  Packet Pg. 415    SUBJECTI PHOTOGRAPHS  NE view of Katherine Street frontage  SW view of Katherine Street frontage  NW view from Katherine Street of boundary between APNs 223-081-015 &  223-081-016  Appraisal Report- - Taylor Fresh Foods  Page 13  Packet Pg. 416    LOCATION  The propertyi is located oni ther north: side of Katherine Street in Gonzales and within the Gonzales Business Park. Adjoining properties include vacant industrial land tot thee east, as storm water retention basin tot the west, Papé Material Handling's facility and Braga's vegetable processing plant to the south, and agricultural farmland to the north that is outside of the city limits boundary. In addition to these uses, Taylor Farms' vegetable processing plant and Mann's vegetable processing plant are located within 500  feet toi the east of the: subject property.  ACCESS  Access is provided by Katherine Street, which is at two-way collector street within the Gonzales Business Park. The street dead-ends at a cul-de-sac to the immediate west of the subject property. The street  frontages are improved with concrete curbs and gutters.  LAND AREA  According to the Monterey County Assessor's Parcel Map, the three lots of the subject property have a combined land area of 6.04t acres. Thet topography is level and near grade with the road frontage. The entire property is considered usable. The property dimensions are summarized asi follows:  Lot Summary APN 223-081-014 223-081-015 223-081-016 Total Easements  Road Frontage Average Depth (Feet) 227.6 227.4 242.0 697.1  Gross Acres 2.00 2.02 2.02 6.04  (Feet) 382.8 386.9 363.6 377.5]  Title to the property is currently subject to two easements that are held by the City of Gonzales. These include a 10-foot-wide public utility easement that runs along the Katherine Street frontage, and a 20- foot-wide sanitary sewer easement that runs to the east of the boundary line separating APNS 223-081-  015 and -016. UTILITIES  The propertyi is located withini the cityl limits and available utilities include sanitary sewer, storm drainage, water, natural gas, electricity, and telephone. These utilities are located along the streeti frontage and/or  are developed toi the property boundary.  Appraisal Report - Taylor Fresh Foods  Page 14  Packet Pg. 417    BUILDING IMPROVEMENTS  There are no building improvements on this property.  HAZARDS Flood Hazard  The property is identified on FEMA's Flood Insurance Rate Map (FIRM) panel 06053C0414G (4/2/2009) as  being within Zone! X, an area of minimal flood hazard.  Seismic Hazard  The property is located within a seismically active area of California but is not located within an Alquist- Priolo Special Studies Zone. The nearest fault is the Reliz Fault, which runs along the base of the Santa  Lucia Mountain Range, about 3t miles west oft the subject property.  ASSESSED VALUATION &TAXES summarized as follows: Assessed Valuation &1 Taxes  The assessed valuation and real estate taxes for the 2023-2024 tax year assigned to the property are  Assessed Values Improvement  2023-2024 Taxes Countywide &  APN 223-081-014 223-081-015 223-081-016 Total Averaget tax rate LAND USE POLICIES  Land Value $945,160 $954,133 $949.646 $2,848,939  Value Total Value Direct Charges Agency Taxes Total Taxes $0 $945,160 $3,603.10 $10,806.72 $14,409.82 $0 $954,133 $3,638.00 $10,909.32 $14,547.32 $0 $949.646 $3.637.44 $10.858.00 $14.495.44 $0 $2,848,939 $10,878.54 $32,574.04 $43,452.58  1.14%  The property is located within an Industrial () zoning district as part of the Gonzales Business Park. The intent of this district is ' to provide for general industrial, manufacturing, wholesale, and service uses needed byt the city andi region subject to regulations necessary to protect other nearby uses from hazards, noise and other disturbances" (12.88.010). Zoning policies allow a variety of commercial and industrial uses withac conditional use permit. The minimum lots size is 10,000 square feet. The maximum floor area  ratio is 50%. HIGHEST & BEST USE  Highest and best use is defined as follows:  Appraisal Report - Taylor Fresh Foods  Page 15  Packet Pg. 418    The reasonably probable use ofp property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial  feasibility, and maximum productivity.  The propertyi isl located withint the Gonzales Business Parkwherel land use policies and adjoining properties are oriented toward and being developed for an industrial use. Duei to the location of this property, the strong demand that exists for vacant industrial land, and the shortage of vacant industrial land that exists throughout the Salinas' Valley, the highest and best use isi industrial; and the most probable industrial use isa an agriculture-related industrial use, which is consistent with the recent developments within the  Gonzales Industrial Park. VALUATION COMMENTS  The purpose oft the appraisal ist to estimate the "fair market value" ofthe real property in accordance with California eminent domain civil procedure codes. As per California law the valuation process involves  several steps which are: summarized as follows:  1) thei fair market value of the property before thet take; 2) the fair market value oft the part taken; 3) thei fair market value of the remainder as part of the whole; 4) thei fair market value oft the remainder before considering special benefits; and 5) thet fair market value oft the remainder considering special benefits.  1 Dictionary of Real Estate Appraisal- - 6th Edition. (Chicago: Appraisal Institute, 2015)p. 109  Appraisal Report - Taylor Fresh Foods  Page 16  Packet Pg. 419    FAIR MARKET VALUE OF THE PROPERTY BEFORE' THE TAKE  SALES COMPARISON APPROACH  Before the take, the property consists of three legal lots that have a combined land area of 6.04t acres. The fee simple value of industrial land is predicated on the sales comparison approach. The sales comparison approach provides an opinion of value derived by analyzing and comparing similar properties that have recently sold, arel listed for sale, or are under contact. Amajor premise of the sales comparison approach is that the market value of a property is related to the prices of comparable, competitive properties. The unit of comparison commonly applied to industrial land is the price per usable square In applying the sales comparison approach, a number of sales have been considered, of which the  foot and which unit of comparison is applied ini this analysis.  following sales are judged to be the most comparable and indicative of value:  Summaryo ofl Land Sales Sole number Saled date Location City Assessor's parcel number Grantor Grantee Zoning Gross acreage Neta acreage Saleprice Improvement: allocation land allocation Price per square foot  7/2/2022 Salinas Harrod Bodega Land Grp Salinas Rossi LC Ind. Bus. Park (IBP) 3.30 3.30 $1,625,000 $1,406,500 $100.000 $1,525,000 $10.61  6/7/2023 12/22/2021 Gonzales Rava Ind.() Heavy Comm. (HC) 2.69 2.56 $0 $12.61  9/25/2023 Salinas Gonzales T&A Bodega LandGrp Slama Trebino 4.64 2.84 4.64 2.35 $3,000,000 $0 $0 $14.84 $15.63  5/19/2022 Salinas Frieberg 851Salinas LLC Penske Sonsrayuc 5.68 5.68 $500,000 $4,000,000 $2,300,000 $16.17  3/31/2022 Salinas  245 W.F Rossi St 142 Bodega 3Spreckels Blvd 122E Bodega 795 EIveeDr 851 Workst 003-161-014 223-081-018 177-071-013 223-081-019 003-701-010 003-461-011  Ind.() Ind. Gen. (IG) Ind. Gen.( (IG) $1,600,000 $4,500,000 $2,300,000  4.43 3.25 $o $16.25  $1,406,500 $3,000,000 $1,600,000  Appraisal Report - Taylor Fresh Foods  Page 17  Packet Pg. 420    Sales Location Map  Sale 1:245 West Rossi Street, Salinas Sale1 1isa2022s sale ofa3.3-acre parcell llocated on West Rossi Street in Salinas. This location is within a secondary industrial area that is removed from Salinas' primary industrial districts, and zoned Industrial Business Park (IBP), which is a more restrictive zoning This property has a rectangular shape that is bounded by Rossi Street to the north, a  2  district.  reclamation ditch to the east and south, and otheri industrial lands to the west. Thei topography! yismostly level and at road grade; however, the eastern 1/3 of the property steps down several feet to a lower elevation. In order to build on the site, some grading or fill will likely be required. Development of this property will also require a setback from the reclamation ditch, which setback could be upwards of 100 The property sold for $1,625,000, or about $11.30 per square foot, for a distribution use. According to the broker, the seller had previously paid about $100,000 toward traffic, school, and sewerf fees.  feet from thei top of the bank.  Appraisal Report-Taylor Fresh Foods  Page 18  Packet Pg. 421    Sale 2:142 Bodega Drive, Gonzales Sale 2isa2023: sale ofal lot located within the Gonzales Business Park. This sale involves a 2.69-acre lot that has a rectangular shape. The lot has al leveltopography: and is accessed byaright-of-wayt that extends from Katherine Street's cul-de-sac. The right-of-way is not developed and, therefore, developing this property will require extending roads and utilities approximately 390t feet from cogiom Katherine Street to the north corner of this  property. There is an additional right-of-way on the west side of the property that extends to Gonzales River Road; however, this is also undeveloped and would require extending a road over 6501 feet to the southwest corner as well as possible frontage improvements to Gonzales River Road. The usable areai is estimated at 2.56 acres, which only excludes the right-of-waya along the east side oft the property. The right-of-wayalongi the west side is not excluded as this right-of-way would only benefit this This property and Sale 4 were owned by the same seller and werê offered together. This lot sold first in June of 2023 toi the adjoining property owner for $1,406,500, ora about $12.62 per square foot. The seller was reportedly under pressure tos sella at least one oft the two lots. Incomparisont to thes subject, the seller's  lot and the lot to the north, which are both under common ownership.  motivation and access are inferior. A higher value applies toi the subject property.  Sale. 3:3 Spreckels Blvd, Spreckels Sale 3 is a 2021 sale of a 4.64-acre parcel located at the Highway 68/Spreckels Boulevard interchange, approximately 1% miles south of Salinas and just east of the Thisl locationi isi int the county and withinasmall pocket thati is zoned Heavy Commercial. Land uses in this area include a mixture of professional offices, mini-storage and light  Salinas River.  industrial.  Appraisal Report- - Taylor Fresh Foods  Page 19  Packet Pg. 422    The property has an irregular shape with frontage along Spreckels Boulevard and Spreckels Lane. Access isc currently provided by Spreckels Lane. The property has a level topography but is mostly in the flood zone. Therefore, developing the property will likely require fill to raise the finished floor of any building Improvements are limited to perimeter cyclone fencing and yard lighting. Water and septic are not currently developed ont this property. Development will require installation of a well and: septics system.  above thei flood elevation.  The property sold for $3,000,000, or $14.84 per square foot.  Sale 4: 122 Bodega Drive, Gonzales Sale 4 is a 2023 sale of a lot located in the Gonzales Industrial Parka and tot thei immediate south of Sale 2. This lot measures 2.71 acres and has a rectangular shape. The sale also includesa0.13-acre: stript that connects thel lot to Gonzales River Road, and a gross land area  of2.84 acres.  This lot has access from Katherine Street bya Cdetn 30-foot right-of-way (15 feet are on this  property) that extends from Katherine: Street tot the north corner of this lot, and access to Gonzales River Road by a 60-foot right-of-way (40 feet are on this property) that extends from Gonzales River Road and along the west boundary' of this lot. Both access rights-of-way are undeveloped and, therefore, developingthis; optrywirgrenendns roada and utilitiest toi the property from at least one ofthese The usable land areai is estimated: at 2.35 acres, which excludes the 0.13-acre parcela andi the 60-foot right- of-way along the west side ofi the property ast this right-of-wayalso! benefits the adjoining lots toi the north. The 30-foot right-of-way is not excluded as this right-of-way predominately benefits this lot. The property sold for $1,600,000, or $15.64 per square foot. The seller had recently sold the lot to the north (Sale 2) and was no longer under pressure to sell quickly. Therefore, thes seller held out fora al higher price, which they obtained. In comparison to the subject, the lack of direct roadi frontage and access are  access points.  inferior and al higher per square foot value applies tot the subject property.  Appraisal Report- - Taylor Fresh Foods  Page 20  Packet Pg. 423    Sale 5:7 795 Elvee Drive, Salinas Sale 5isa5 5.68-acre property located on Elvee Drive within Salinas. The property frontsalong the west side of Highway 101 and has good The property has an irregular shape that is bounded by Highway 1011 tot the northeast and an reclamation ditch to the southwest. The topography is level and the entire property is considered usable. Previously, the property  highway exposure.  was used as a commercial truck dealership and was improved with a 20,000-square foot building. The building was destroyed by a fire in 2021. The improvements that remain include the concrete footings The property sold for $4,500,000, or $18.17 pers square foot, to Penske, who intends to rebuild the prior structure and use the property for a similart truck dealership use. There are significant cost savings being able to rebuild a structure as compared to building new, including site improvements, utilities, and development impact credits from the prior structure. The sale is allocated $500,000 toward these improvements and development credits, and $4,000,000 for the land, or $16.17 per square foot.  andy yard improvements.  Sale 6:8 851 Work Street, Salinas Sale6isa4,43-acre lot locatedi int the Growers- Shippers development in Salinas. This subdivision consists of 46t acres that are bound between the Ottone Business Park to ther northa and! Sanborn Road toi thes south. The zoning is Industrial-General (IG). This property has at triangular shape with 754t feet of roadi frontage along Work Street thati is improved with concrete curbs, gutters, and  sidewalks. The northeast boundary extends into Reclamation Ditch #1665 and there are approximately 1.18t acres within the reclamation ditch or within al lower bench adjacent to the reclamation ditch that are within the 100-year flood zone. The usable acreage is estimated at 3.25t acres which have a level  topography that is at grade with the road frontage.  Appraisal Report - Taylor Fresh Foods  Page 21  Packet Pg. 424    The property sold in 20191 for $2,300,000 or $16.25 per usable square foot. The sellers of the property were in the process of selling their business to the buyers. This parcel was not included in the business purchase and sold separately to, the buyers based upon a broker's opinion of market value. Prior to the sale, the buyers had obtained a use permit for their proposed use; however, it is my understanding that the price was predicated on the property's land value, exclusive of any entitlement value.  Sale Adjustments Market Conditions  The sales occurred from 2021 to 2023. Industrial land values have generally appreciated over the past fewy years due largely tot the lack ofa available vacant land. The more recent sales indicate that prices have  increased over the past few years, asi indicated by thet following comparisons:  Market Conditions Adjustment Sale number Sale date Address City Grantor Grantee Gross acreage Neta acreage Sale price Improvement: allocation Land allocation Price per net squaref foot Comparisont to Sole6 Time difference (years) % diffrence Average annual %0 change Comparisont to SoleZ Time difference (years) %diffrence Average annual % change  n/a and n/a 1/4/2019 3/26/2019 851 WorkSt 791WorkSt Salinas Salinas 1508 AbbottL LLC GakhalProp. 851Salinas LLC Slama 4.43 5.68 3.25 4.00 $1,865,000 $2,099,880 $0 $0 $1,865,000 $2,099,880 $13.17 $12.05 3.38 3.15 22.7% 34.1% 6.7% 10.8% 3.24 3.01 23.3% 34.8% 7.2% 11.5%  to  6 3/31/2022 Salinas SonsraytLC 4.43 3.25 $2,300,000 $0 $2,300,000 $16.25  5/19/2022 795 Elveel Dr 851WorkSt Salinas Frieberg 851SalinasuC Penske 5.68 5.68 $4,500,000 $500,000 $4,000,000 $16.17  Appraisal Report- - Taylor Fresh Foods  Page 22  Packet Pg. 425    Market Conditions, Adjustment Saler number Sale date Address City Grantor Grantee Gross acreage Neta acreage Saleprice Improvement: allocation Land allocation Pricep per nets squaref foot %change Timec difference( (years) Annual %0 change  n/a 3/24/2020 162 Bodega Dr Gonzales Manhattan Assoc Bodega Land Grp 2.69 2.56 $1,113,500 $0 $1,113,500 $10.00  VS  and  6/7/2023 142Bodega Gonzales Bodega Land Grp Rava 2.69 2.56 $1,406,500 $0 $1,406,500 $12.61 26.1% 3.2 8.1%  9/25/2023 122 Bodega Gonzales Bodega Land Grp Trebino 2.84 2.35 $1,600,000 $0 $1,600,000 $15.63 56.2% 3.5 16.1%  The preceding tables indicate an average percentage change of 6.7% to 16.1% over the past few years. Based in part on these comparisons, an upward adjustment of 7.5% per yeari is applied to the 2021 and 2022 sales. The sales are only adjusted through the end of. June 2023 as it is questionable if land values continued to appreciate during the second half of 2023 and 2024. The 2023 sales are considered current,  and a market conditions adjustment is not applied.  Location  Sales 2 and 4 are located within the Gonzales Business Park and are comparable to the subject property. The remaining properties are located within Salinas and! Spreckels, which have historically commanded higher values than Gonzales. However, the difference in land values between these more northerly To estimate the difference between Salinas and Spreckels to Gonzales, the following comparisons are  communities and Gonzales is narrowing as the supply of available land diminishes.  considered:  Appraisal Report- - Taylor Fresh Foods  Page 23  Packet Pg. 426    Location. Adjustment Paired Sale Comparison#1 Sale number Sale date Address City Netacreage Saleprice Pricer per square foot %difference  n/o 8/20/2018 681 Work St Salinas 2.10 $1,055,000 $11.53  to  n/o 1/19/2018 162 Bodega Gonzales 2.56 $997,000 $8.94 -22.5%  Paired Sale Comparison #2 Sale number Sale date Address City Netacreage Sale price Price per square foot %difference  n/a 3/26/2019 791 WorkSt Salinas 4.00 $2,099,880 $12.05  to  2 3/24/2020 162 Bodega Dr Gonzales 2.69 $1,113,500 $9.50 -21.1%  Paired Sale Comparison #3 Sole number Sale date Address City Netacreage Salep price Price per square foot Market conditions adjustment Adjusted price Site worka adjustment Adjusted price %difference  6 3/31/2022 851 Work: St Salinas 3.25 $2,300,000 $16.25 9.4% $17.77 0.0% $17.77  to  9/25/2023 122 Bodega Gonzales 2.35 $1,600,000 $15.63 0.0% $15.63 7.5% $16.80 -5.4% Page 24  Appraisal Report- - Taylor Fresh Foods  Packet Pg. 427    The above table indicates a difference of -5.4% to -22.5% with the oldest comparison indicating the highest indication and the most recent comparison indicating the lowest indication. A downward adjustment of -10% is applied to Sales! 5 and 6 and al lower adjustment of -5% is applied to Sale 3.  Site Work & Utilities  Most of the sales are fairly comparable to the subject property in regard to site work and utilities; however, Sale 1 will require fill as 1/3 of the property is on a lower bench, Sales 2 and 4 will require extending roads and utilities to their boundaries, and Sale 3 will require fill as part of the property is in thei flood zone as well ast the development of a well and septic system. An upward adjustment of5to10%  isa appropriate and from whicha a7.5% adjustment is applied to these sales.  Size  The sales range in size from 2.35 to 5.68 acres whereas the subject property is 4.44 acres. The sales are  within a reasonable range oft the subject and a size adiustment is not applied.  Adjustment Summary Summary oflands Sale Adjustments Sole number Saledate Location City Gross acreage Neta acreage Salep price Improvement: allocation Land allocation Landa allocation pers sq.f ft. Market conditions adj. Timec difference (years) Adj. @7 7.5% per year Adjusted pricep per sq.ft. Percenta adjustment Location adjustment Sitev work & utilities Size Total percenta adjustments Adjusted price per sq.f ft.  The adjustments applied tot the sales are summarized as follows:  7/2/2022 Salinas 3.30 3.30 $1,625,000 $1,406,500 $100.000 $1,525,000 $1,406,500 $10.61 1.0 7.5% $11.40 0.0% 7.5% 0.0% 7.5% $12.26  6/7/2023 12/22/2021 Gonzales 2.69 2.56 $0 $12.61 0.0 0.0% $12.61 0.0% 7.5% 0.0% Z.5% $13.56  9/25/2023 Gonzales 2.84 2.35 $0 $15.63 0.0 0.0% $15.63 0.0% 7.5% 0.0% 7.5% $16.80  5/19/2022 Salinas 5.68 5.68 $500.000 $16.17 1.1 8.4% $17.52 -10.0% 0.0% 0.0% -10.0% $15.77  3/31/2022 Salinas 4.43 3.25 $2,300,000 $0 $2,300,000 $16.25 1.3 9.4% $17.77 -10.0% 0.0% 0.0% 10.0% $15.99  245 W.F RossiSt 142 Bodega 3Spreckels Blvd 122 Bodega 795 ElveeDr 851WorkSt  Salinas 4.64 4.64 $0 $14.84 1.5 11.4% $16.54 -5.0% 7.5% 0.0% 2.5% $16.95  $3,000,000 $1,600,000 $4,500,000 $3,000,000 $1,600,000 $4,000,000  The above table provides an adjusted range of$ $12.26 to $16.95 per square foot.  Appraisal Report- - Taylor Fresh Foods  Page 25  Packet Pg. 428    Sale 1 provides the lowest indication but in light of the other sales, al higher value applies. seller was under pressure forac quick sale and the price paid was below market.  Sale 2 provides the next lowest indication and while this is a sale within the Gonzales Business Park, the The remaining sales provide a range of $15.77 to $16.95 per square foot and a value within this range is  appropriate.  Fair Market Value Conclusion $16.50 per square foot. Hence, Land area (acres) Land value per squarei foot Land value Rounded to (nearest $1,000)  Based on the previous analysis, the fair market value of the property before the take is concluded at  6.04 $16.50 $4,341,190 $4,341,000  Appraisal Report - Taylor Fresh Foods  Page 26  Packet Pg. 429    FAIR MARKET VALUE OF THE PART1 TAKEN  As pert the legal descriptions oft thet take, whicharei included int thea addendum, the partst taken are depicted  as follows:  Public Utility Easement (PUE) Sanitary Sewer Easement (SSE) Temporary Construction! Easement (TCE)  u Existing Easements  Existing 20' wide SSE Easement per Doc. #2001025055 APN223-081-016 Lot5 23-C&7-19 Doc. #2018002290  APN223-081-015 Lot4 23-C&7-19 New 15  APN223-081-014 Lot3 23-C&T-19  Doc. #2018002279  wide! SS Taylor Fresh FoodsInc.  Easement #2 New TCE  mmme wwg A u  TAA  KATHERINE STREET (A CITY ROAD 60' WIDE)  The PUE is a 15-foot-wide permanent easement that encumbers 6,810t square feet. The easement runs tot thei immediate. north of ane existing 10-foot easement that runs along the southeast propertyboundary. The SSE is a 15-foot-wide permanent easement that encumbers 5,590t square feet. The easement runs near an existing 20-foot-wide SSE with 869t square feet situated between the existing and new SSEs. The TCE isat temporary easement that runs alongt the northwest side of the PUE to a width of about 16.5t feet, and runs to1 the northwest boundary to a width of 501 feet, spanning the new: 20-foot-wide SSE. The TCE encumbers 24,829t square feet, including the land within the SSE. Omitting the land within the SSE,  the TCE encumbers 19,239t square feet.  Appraisal Report - Taylor Fresh Foods  Page 27  Packet Pg. 430    Take Summary Description  Square Feet 6,810 5,590 12,400 24,829 5.590 19,239  Acres 0.16 0.13 0.28 0.57 0.13 0.44  Permanent Easements (PUE& SS) Public Utility Easement (PUE#1) Sanitary Sewer Easement (SSE #3) Total permanent easements Temporary Construction Easement TCE( (TCE# #2) Less:Area within proposed SS#3 Total TCE area outside of existing and proposeds SSES EASEMENT #1 (PUBLICUTILITY EASEMENT)  The fair market value of the property before the take was concluded at $16.50 per square foot. The fair market value oft the PUE would be less thani thei fee simple value because the fee owner retains use oft the The 15-foot-wide PUE would preclude an owner from building a structure within the easement area; however, the southerly 10-feet of the PUE is already precluded by the City's Industrial zoning ordinance as iti is located within a 20-foot setback from the front of the property. The remaining 5 feet of the PUE are outside of the 20-foot setback and could affect the placement of any structure. However, it is considered unlikely that anys structure would be placedi this close tot thes streetfrontage. Most userswould likely use this areai for landscaping, parking, and driveways-alofwhich. can still occur overt the easement Thesei frontage areas are often used for storm water detention ponds and this easement would preclude this type of improvement; however, storm water detention is already provided off-site and would not be While the PUE can affect the layout of the property's site improvements and could result in future disruptions pertaining to access, maintenance, replacement, or installation of utilities within the PUE, the PUE willl have ai minimal effect on the probable use and value of the property. Therefore, thei fair market value oft the part taken would be moret than 0% and! less than! 50% ofthei fees simple value, andi is concluded  easement areat for landscaping, driveways, and: surface parking.  area.  required on this property.  at 30.0% as follows:  Appraisal Report- - Taylor Fresh Foods  Page 28  Packet Pg. 431    Inside. 20-Foot Setback 20-Foot: Setback 4,540 $16.50 25.0% $4.13 $18,728  Outside of 2,270 $16.50 40.0% $6.60 $14,982  Description PUEI landa area (squarei feet) %0 of fees simplevalue  Total 6,810 $16.50 30.0% $4.95 $33,710  Fees simplel land value per square foot before thet take Fair market value per squaret foot oft the partt taken Fair market value of the part taken  EASEMENT #2 (TEMPORARY CONSTRUCTION EASEMENT)  The value of the TCE is considered later as iti iso only a temporarytaking.  EASEMENT #3 (SANITARY SEWER EASEMENT)  Thei fair market value oft the SSE woulda alsol be less thant thei fees simple value because thef fee owner retains use of the easement areai for landscaping, storage, drainage, driveways, and surface parking. However, this easement is beyond the required front 20-foot setbacki in the City's Industrial zoning ordinance and could affect the placement of buildings and the overall layout oft the property. The SSE could also result ini future disruptions pertaining to access, maintenance, replacement, or installation of pipelines within The fair market value of the SSE would be fairly significant because it could affect the placement of building improvements andi the overall layout oft the property. Thei fair market value oft this portion would be greater than what applied to that portion oft the PUE that is located outside the 20-foot front setback area, as it will have a greater effect on use. The fair market value oft this portion of the SEE is concluded  the SSE.  at! 50.0% of thet fees simple value.  Hence, Description SSE land area (squaref feet) %off fee: simplevalue  Total 5,590 $16.50 50.0% $8.25 $46,118  Fees simpleland value per squaret foot beforet thet take Fair market valuep per squaref foot of the part taken Fair market value oft the part taken FAIRI MARKET VALUE OFTHE PARTTAKEN  The fair market value oft the part taken is concluded as follows:  Appraisal Report- - Taylor Fresh Foods  Page 29  Packet Pg. 432    Value per Square Foot $4.95 $8.25  Description Fair market value of the PUE Fair market value oft the SSE Fair market value oft the part taken  Square Feet 6,810 5,590  Value $33,710 $46.118 $79,827  FAIR MARKET VALUE OF THE REMAINDER AS PART OF THE WHOLE  Thei fair market value oft the remainder: as part oft the wholei ist thef fair market value oft the property before  the take less thet fair market value of the part taken, whichi is calculated as follows:  Fair market value of the property before thet take Fair market value oft the part taken Fair market value of the remainder as part of the whole  $4,341,000 $79.827 $4,261,173  FAIRI MARKET VALUE OF THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS  There are damages to the remainder attributed to the SSE because the location of the SSE results in a small area of about 869t square feet that is sandwiched between the existing SSE and thei new SSE that is not encumbered. Due to the small size of this area, its utility to the remainder is reduced to that of the adjoining SSE. Therefore, damages equal to 50% of the underlying fee simple value is concluded and  calculated as follows:  Area between SSE and existing 20-foot wide easement Fee simplel landy value per squaret foot before thet take  869 $16.50 50.0% $8.25 $7,169  %0 off fee: simple value Damages per squaref foot Damages follows:  Therefore, the fair market value of the remainder before considering special benefits is concluded as  Appraisal Report- - Taylor Fresh Foods  Page 30  Packet Pg. 433    Fair market value of ther remainder as part of the whole  $4,261,173 $7,169 $4,254,004  Damages  Fair market value oft the remainder after the take before considering special benefits  FAIRI MARKET VALUE OF THE REMAINDER CONSIDERING SPECIAL BENEFITS  The project does not provide special benefits. Therefore, the fair market value oft ther remainderafter the  take and after considering special benefits is as follows:  Fair market value oft the remainder after thet take beforeconsidering: special benefits Fair market value of the remainder after the take after considering special benefits  $4,254,004 $0 $4,254,004  Special benefits  Appraisal Report - Taylor Fresh Foods  Page 31  Packet Pg. 434    FAIRI MARKET VALUE OFT THE TEMPORARY CONSTRUCTION EASEMENT  A TCE is required for constructing the project and encumbers approximately 14,064t square feet, excluding the land area within the existing sanitary sewer easement. The easement would encumber the The value of the TCEi is predicated on an appropriate land rent fort the TCE for its duration. Industrial land rents generally range from $0.055 to $0.12 per square foot, with rents between $0.055 and $0.08 per square foot generally applying to unimproved industrial land, and rents above $0.08 per square foot generally applying toward land with site improvements, such as perimeter fencing and base rock. The appropriate rent for this property would fall within the $0.055 to $0.08 per square foot range as it is To refine the rental range for the TCE, consideration is given to an appropriate return on land value. The fee simple land value was previously concluded at $16.50 per square foot. A 6.0% rate of return is applicable, indicating a land rent of $0.083 per square foot per month, which is slightly higher than the expected range. Theretore, ar rent of $0.08 pers square foot is concluded: as thei fair market rent oft the" TCE.  property for 6months.  unimproved land.  Hence, the value of the TCE is concluded as follows: TCEland area (squarefeet), excluding thel land area within the! SSEs  19,239  Land rent Fees simple! land value Required rate of return Rent per square foot per year  $16.50 6.0% $0.99 $0.083  Indicated monthly rent based upon ar return onl land value Market rent per squaret foot applied int this analysis Estimated duration of thel TCE (months) Falr market value ofthel TCE  $0.080 6.0 $9,235  Appraisal Report-T Taylor Fresh Foods  Page 32  Packet Pg. 435    COMPENSATION. SUMMARY  Fair market value of thep part taken as part oft thev whole  $79,827 $7,169 $o $7,169 $9,235 $96,231  Damages & special benefits Damages Less:Special benefits Subtotal Value of thel TCE Total value oft the take  Appraisal Report- - Taylor Fresh Foods  Page. 33  Packet Pg. 436    CERTIFICATION  Icertify that, toi the best of my knowledge and belief:  The statements of fact contained ini this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest int the property that is the subject oft this report, and no l'appraised the same easements in 2023 and 2024 for the City of Gonzales but have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this lhave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 oft the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As oft the date oft this report, John W.I Piini, MAI has completed the continuing education program  opinions and conclusions.  personal interest with respect to the parties involved.  assignment.  involved with this assignment. predetermined results.  subsequent event directly related to thei intended use of this appraisal.  Appraisal Institute. certification.  byi its duly authorized representatives. for Designated members oft the Appraisal Institute.  Wh Piini, MAI  R  Certified General Real Estate Appraiser State of California, BREA Number AG005214  Appraisal Report- - Taylor Fresh Foods  Page 34  Packet Pg. 437    CERTIFIÇATION  Icertify that, to the best of myl knowledge and belief:  The statements oft fact contained int this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest ini the property that is the subject of this report, and no l'appraised the same easements in 2023 and 2024 for the City of Gonzales but have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this I have no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject tot the requirements of the Appraisal Institute relating to review As oft the date of this report, Greg Piini, MAI has completed the continuing education program for  opinions and conclusions.  personal interest with respect to the parties involved.  assignment.  involved withi this assignment. predetermined results.  subsequent event directly related to the intended use of this appraisal.  Appraisal Institute. certification.  byi its duly authorized representatives. Designated members oft the Appraisal Institute.  Certifièd.Géneral Real Estate Appraiser State of California, BREA Number AG044270  &  Appraisal Report- - Taylor Fresh Foods  Page 35  Packet Pg. 438    LIMITING CONDITIONS  Assumptions and Limitations of Appraisal  This appraisali is for no purpose othert than propertyvaluation, andi the appraiser(s)! is neither qualifiedi nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations tot the accuracy of thei information and analyses contained int this appraisal. Before making any decision based on the information and analysis contained ini this report, it is critically important to read  this entire section to understand these limitations. Appraisal is not al Legal Opinion discussed in the report.  No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources, generally considered reliable. Title is assumedi tol ber marketable and free and clearofa all liens and encumbrances, easements, andi restrictions except those specifically discussed int the report. The property isa appraised assuming it to be under responsible ownership and competent management and available Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for Itis assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation. Any significant question should be addressed to local zoning or land use officials and/or an attorney. Itis assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and  for its highest and best use.  this appraisal.  regulations affecting the subject property.  Appraisal Report - Taylor Fresh Foods  Page 36  Packet Pg. 439    Testimony or attendance in court or at any other hearing is not required by reason of rendering this  appraisal unless a signed contract has been executed prior to the date ofthis report.  Appraisal is not a Survey  No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real properlylmprovements is assumed to exist. Iti is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted int the report. All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for No opinion is expressed as tot they value of subsurface oil, gas or mineral rights and that the propertyi is not subject to surface entryf for the exploration or removal of such materials except as is expressly stated.  encroachments, or other survey matters.  Limited Data  matters int this report should be considered preliminary in nature.  other components  anys such condition or for any expertise or engineering to discover them.  Appraisal Report-Taylor Fresh Foods  Page 37  Packet Pg. 440    No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. Itisi further assumed that the lot does not contain any type of dumps site andi that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. Ifanyp problems of this nature are known tot the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. Ifiti is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walis, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested partyi is concerned about the existence, condition ora adequacy ofa any particular item, we would  additional cost will be necessary to estimate the effects of such.  strongly suggest that a construction expert bel hired fora a detailed investigation.  Appraisal Report Limitations  Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property ort the real estate market. While not factors we believe tol be significant but unknown toi the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from al lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue  provided by others, etc.  additional data gatheringi for al higher level of certainty.  Appraisal Report - Taylor Fresh Foods  Page. 38  Packet Pg. 441    Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed: as advice or recommendation toa act. Any actions taken! byy you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just Appraisal reports made for lenders are technical documents specifically made to lender requirements. Casual readers are cautioned. about their limitations and cautioned against possible misinterpretation of Neither allr nor any part oft the contents ofthis report, especiallya any conclusions ast to value ort thei identity oft the appraiser or1 thei firm tov which appraiseri is connected, shall be disseminated to the public for public communication purposes through advertising media, publici relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author. The estimated market value, whichi is defined ini the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin oft the present owners or occupants oft the properties int the vicinity ofi the property  the value estimate and information, given int this report.  the information contained int these reports.  economically int the marketplace as ofthe date of value.  appraised.  Acceptance of Appraisal Report authorized. representatives.  The use oft this report is subject tot ther requirements oft the Appraisal Institute relating to review byi its duly This appraisali is an estimate of value based on an analysis ofi information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect ori incomplete information. Ifnewi information of significance comest tol light, ori ifany conditions become apparent not previously known toi the appraiser(s) which would affect the value oft the property, the value giveni in this report is subject to change without notice and a re-appraisal at additional cost will Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, andi the liability is limited to the amount off fee received by the appraisers(s).  be necessary.  Appraisal Report - Taylor Fresh Foods  Page 39  Packet Pg. 442    ADDENDUM  Packet Pg. 443    Grant Deed of  Easement #1 - Public Utility Easement APN 223-81-014 and 223-081-015 Taylor Fresh Foods, Inc. to City of Gonzales  LEGAL DESCRIPTION  Situate within the Rancho Rincon del la Punta del Monte, City of Gonzales, Monterey County, State of California, beinga a portion of Lots 3 and 4 ofT Tract No. 1455, Vista de Santal Lucia, Gonzales Agricultural Business Park, as saidl lots are shown ont the mapi recorded in' Volume 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described: as follows:  Astrip of land 15 feet wide lying northwesterly of and contiguous to an existing 101 foot wide Public Utility Easement (P.U.E.) as shown on said map recorded in' Volume 23 of Cities and Towns at Page  19, of Official Records ofs said County. Containing an area of 6,810 square feet, more orl less.  This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: July30,2024  Packet Pg. 444    A    Packet Pg. 445    Grant Deed of APN 223-81-016  Easement #3 - Sanitary Sewer Easement Taylor Fresh Foods, Inc. to City of Gonzales  LEGAL DESCRIPTION  Situate within the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, beinga aj portion of Lot 4 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said Loti is shown on the map recorded in' Volume 23 of Cities and Towns at Page 19, Official Astrip of land 15 feet in width, lying 7.51 feet on either side of thet following described centerline: COMMENCING at ther northwesterly corner of said Lot 4; thence along the northerly line of said Lot4, North 52°27'02" East, 31.12 feet to the POINT OF BEGINNING; thence departing said northerly line,  Records ofs said County, being particularly described as follows:  crossing said! Lot4  1) South 38° 28': 11" East, 103.34 feet; thence  2) South 39° 00' 04" East, 269.33 feet to a point on al New 15 foot wide Public Utility Easement and  the end of said strip.  Containing an area of 5,590 square feet, more or less.  This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: July30,2024  Packet Pg. 446    090-120-020 Ndv uuDW  61-180-EZ10d End Duysixg epim,OL  End epim SI MON  #)  Packet Pg. 447    Grant Deed of  Easement #2 - Temporary Construction Easement APN 223-81-014, 223-081-015 and 223-81-016 Taylor Fresh Foods, Inc. to City of Gonzales  LEGAL DESCRIPTION  Situate within the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of Lots 3 and 4 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lots are shown on the mapi recorded in' Volume. 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described as follows:  COMMENCING at the northerly corner: said Lot 4; thence along the northerly line ofs said Lot 4, North 52" 27'02" East, 6.121 feet to the POINT OF BEGINNING; thence continuing along said northerly line 1) North! 52° 27' 02" East (shown as $50'57'21" W on said map), 50.01 feet; thence departing said  northerly line crossing said Lots 3 and 4 2) South 38° 28'11" East, 102.83 feet; thence 3) South: 39° 00' 04" East, 254.471 feet;thence 4) North! 51°18'56" East, 400.561 feet; thence 5) South 42° 48'28" East, 16.461 feet; thence 6) South! 51'31'15"West, 451.661 feet; thence 7) North 39° 00'04"V West, 269.22 feet; thence  North 38° 28'11"West, 103.861 feet to the POINT OF BEGINNING.  Containing an area of 0.57 acres, more or less. This legal description was prepared by:  Lynn A. Kovach P.L.S.5321 Dated: August5,2024  Packet Pg. 448    0S0-120-OZONdV UuDW  3Ad epIm SLMON  61-180-Ezed End Buysixg epm,oL  A  3)  A  3  Packet Pg. 449    PIINI REALTY  QUALIFICATIONS OF THE APPRAISER  John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of  Monterey, San Benito, Santa Cruz and Santa Clara Counties.  Academic Background Formal Education Appraisal Education  University of California, Los Angeles, BA degree -1974  Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements. Since 1983, John Piini has completed a number of appraisal courses and seminars and is current  with Appraisal Institute's continuing education requirement.  Professional Experience 1975-1983 1983-2008 2008- present  Associate appraiser with. Joe Piini, MAI  Part owner of Piini Realty, ai family owned and operated real estatei firm involved in appraising, brokerage, development andi management. Upon the retirement of Jim Piini, John Piini became the sole owner of Piini Realty, which is a full service real estate firm providing appraisal, brokerage and property management services. In 2008, John Piini obtained his California Brokers license and his real estate activity focuses primarily on appraising and marketing agricultural properties.  Appraisal Assignments financial lending.  The majority of assignments pertain to the valuation of agricultural and acreage properties fora variety of purposes including estate planning, conservation easements, trust management and  Valuations of commercial, industrial special-use, residential and  development properties are also performed.  Professional affiliation and memberships  MAI- - Member oft the Appraisal Institute - Certification Number 6708 California Certified General Real Estate Appraiser- - OREA #/ AG005214 California Licensed Real Estatel Broker - DRE #C 00542238  Monterey County Board of Realtors  263 Lincoln Ave., Salinas, CA93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiniRealty.com  Packet Pg. 450    QUALIFIÇATONS OF1 THE APPRAISER  Greg Piini, MAI has been engaged in the real estate business since 2000. Over this period of time, Greg  has focused on both reale estate appraisal and property management.  Academic Background Formal Education  Hillsdale College, Hillsdale, Michigan. Bachelor of Arts in Finance, 2000  Appraisal Education  Appraisal Institute - 2001 through current. Beginning in 2001, Greg began taking appraisal classes with the Appraisal Institute and has continued taking classes and seminars over the years. Greg is current with the continuing education requirements of the BREA and the  Appraisal Institute. Professional Experience Piini Realty,Inc. 2000-2019  During the first nine years, Greg worked as an associate appraiser with John W. Piini, MAI. In 2009, Greg obtained his Certified General Real Estate Appraisal License, and in 2016, he completed the requirements to obtain the MAI designation of the Appraisal Institute. In: 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage,  2019-Current  development and management.  Appraisal Assignments  The majority of appraisal assignments involve acreage, agricultural, commercial and industrial properties located in Monterey, Santa Cruz, San Benito and Santa Clara Counties. The appraisals are prepared for a variety of clients that range from attorneys, land trusts, government agencies, and property owners for a variety of purposes that include estate planning, conservation easements, trust management, andi financial lending.  Professional affiliation and memberships Appraisal Institute  California Certified General Real Estate Appraiser - BREA # AG044270 California Licensed Real Estate Salesperson - BRE#01294279  Monterey County Board of Realtors  Packet Pg. 451    Memorandum of Understanding  Taylor Fresh Foods, Inc., a Delaware corporation ("Taylor") owns that certain real property commonly referred to as, APN 223-081-014 and APN 223-081-015, in the City of Gonzales ("Property"). The City of Gonzales ("City") has requested aj permanent easement to operate, maintain, repair, enlarge, replace public utilities and appurtenances within aj portion of thel Property morej particularly described in Exhibit A and depicted on the site plan attached hereto  as Exhibit B.  NOW,THEREFORE, inconsiderationofthe foregoingrecitals, thecovenants hereinafter set forth, and for other good and valuable consideration, thei receipt and sufficiency ofwhich are  hereby acknowledged, Taylor and City do agree as follows:  1.  Right of Entry: Easements. Taylor shall grant to City a Right of Entry (in the  form of Exhibit C), a Temporary Construction Easement ("TCE") (in the form of Exhibit D), a Sanitary Sewer Easement ("SSE") (in the form of Exhibit F), and a Public Utilities Easement ("PUE") (in the form ofExhibit G), (collectively Easement Agreements and Right of Entry"). addition to the consideration referenced in the Easement Agreements and RightofEntry, City shall schedule and attend recurring meetings with Taylor to provide an update on the status of the construction oft the City's Industrial Wastewater Project. This information will facilitate Taylor's  2.  Additional Consideration for Easement Agreements and Right of Entry. In  forward planning ofits wastewater treatment facility.  3.  Project Updates. At the recurring meetings, city shall present information  regarding the construction of the Industrial Wastewater project, rehabilitation of the existing Wastewater Treatment Plant, and thes status ofallocations ofwastewater from both the construction ofthel Industrial Wastewater project and rehabilitation ofthe existing Wastewater Treatment Plant. 2025 and reoccur on the earlier of (i) development of new information regarding the availability ofwastewater or (ii) six (6) months following the preceding meeting. Scheduling of the meetings shall be at times convenient for both City and Taylor. The meetings shall terminate upon completion of Phase I of the Industrial Wastewater project and rehabilitation of the existing  4.  Scheduling of Meeting: Attendees. The meetings shall commence in January  Wastewater Treatment Plant.  5.  Notices:  Notices to the City shall be sent to:  City of Gonzales Director of Public Works POI Box 647 147 Fourth Street Gonzales, CA 93926  1  Packet Pg. 452    Notices to' Taylor shall be sent to:  John Mazzei Taylor Fresh Foods 150 Main Street, Suite 400 Salinas CA 93901 Anthony Lombardo Anthony Lombardo & Associates 144 W Gabilan Street Salinas, CA 93901  With a copy to:  6. 7.  Governing Law. This Memorandum ofUnderstanding shall be governed by the Severability. Ifany provision ofthis Memorandum ofUnderstanding: is prohibited  laws oft the State of California.  orl held to bei invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability of the other provisions shall not be affected or impaired thereby and (b) the parties hereto shall endeavor in good faith negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or  unenforceable provisions.  8.  Remedies. In the event ofany breach or threatened breach of any provision ofthis  Memorandum of Understanding, the parties hereto may prosecute any proceedings at law or in equity to enjoin such breach or threatened breach and to: recover damages for any such breach. The remedies permitted or available pursuant to the provisions ofthis Memorandum ofUnderstanding shall be cumulative and in addition to any rights or remedies available at law or in equity.  9.  Counterparts. This Memorandum of Understanding may be executed in any  number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument. The signature page ofa any counterpart may be detached therefrom without impairing the legal effect oft the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages executed by other parties to this Memorandum ofUnderstanding attached thereto. 10. Cost of Enforcement. If any legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Memorandum of Understanding, the party prevailing in such action shall be entitled toi recover from thel losing party all ofits costs ofsuit, including, but not limited to, reasonable attorneys' fees awarded by the court.  This Memorandum ofUnderstanding shall be effective as oft this day of  2024.  [Signatures appear on the following pages]  2  Packet Pg. 453    CITY OF GONZALES  OWNER: Taylor Fresh Foods, Inc.  By:  By:  Carmen Gil, City Manager  3  Packet Pg. 454    AVOLEM  Grant of Easement - Sanitary Sewer Easement Grant of Easement -) Public Utilities Easement Grant ofl Temporary Easement Appraisal Report Avolem  Packet Pg. 455    Recording requested by: CITY OF GONZALES 147 Fourth Street Gonzales, CAS 93926 And when recorded mail copy to: CITY OF GONZALES Public Works Department PO: Box 647 Gonzales, CA 93926 Nol Recording fee - Government Code $ 27383  Space above this line for Recorder'suse  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by Avolem LLC, a California limited liability company ("Grantor"), for  the benefit of the City of Gonzales, an incorporated City ("Grantee-"), with reference to the  following recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as APNI No. 223-081- B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon sanitary sewer/water lines, manholes, handholes, and appurtenances within (the "Easement. Purpose")aportion: ofthe Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the  012, in the County of Monterey, State of California.  site plan attached hereto as Exhibit B.  NOW,THEREFORE, in consideration ofthe foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee aj permanent non-exclusive easement  tot thel Easement. Area for the Easement Purpose; and for the further purpose ofingress, egress and passage across with all the necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with ai right ofway upon, over, under, through and across thel Property to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill or other structures over the hereinafter described Easement  Area.  Packet Pg. 456    2. Compensation. Grantor acknowledges receipt of compensation from Grantee for the Easement in accordance with the value oft thej property per the Appraisal Report dated August  16,2024. 3.  Maintenance. Grantor hereby grants to Grantee a perpetual non-exclusive  easement for maintenance and repair purposes over the Easement Area and such portions of the Property as are1 reasonably: necessary for suchi maintenance and repair. Grantee shall be responsible  for all costs associated with the Grantee's use oft the Easement.  4.  No Gift or Dedication. Nothing contained in this Easement Agreement shall be  deemed tol be a gift or dedication of any portion oft the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted in this Easement Agreement shall be strictly limited to and for thej purposes herein expressed with respect to private property solely for the benefit oft the parties and their respective  tenants, invitees and licensees.  5.  Mortgagee Protection. Nol breach or violation oft this Easement Agreement or of  the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing al loan made in good faith and for value with respect to any portion of the Property, but all of the provisions of this Easement Agreement shall be binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to the Property or any portion thereof, by foreclosure, trustee's sale, deed  inl lieu of foreclosure, or otherwise.  6. 7.  Notice of Material Issue. Grantor shall promptly notify Grantee in writing of any Governing Law. This Easement Agreement shall be governed by and construed 8. Successors and Assigns: Covenants Running with the Land. This Easement Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. of the  material issue or fact that may affect thel Easement. in accordance with thel laws ofthe State of California.  California Civil Code.  9. Severability. Ifany provision ofthis Easement Agreement is prohibited or held to be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability of the other provisions shall not be affected ori impaired thereby and (b) the parties hereto shall endeavor in good faith: negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or unenforceable  provisions.  10. Remedies. In the event of any breach or threatened breach of any provision oft this Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to enjoin such breach or threatened breach andi toi recover damages fora any such breach. Thei remedies  2  Packet Pg. 457    permitted or available pursuant to the provisions ofthis Easement Agreement shall be cumulative  and in addition to any rights or remedies available at law or in equity.  11. Indemnification.  (a) Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising from the willful or negligent acts or omissions ofa Grantor Party. affiliates, contractors, employees and agents (collectively, "Grantee Parties")harmless: from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly ori indirectly from or related to Grantor's exercise ofany rights retained by Grantor under this Easement Agreement or arising from the willful or negligent acts or omissions ofa Grantor Party, provided that Grantor shall not be required to indemnity or hold Grantee harmless from and against any loss, claim, demand, costs, expense, lien, fine, penalty, liability,judgment or damages arising from the willful or negligent acts or omissions ofa Grantee  (b) Grantor shall indemnify, defend and hold Grantee, and its officers,  Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each ofwhich shall be deemed an original, but all ofwhich when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature pagei is attached to any other counterpart identical thereto except having additional signature pages  executed by other parties to this Easement Agreement attached thereto.  13. Cost of Enforcement. Ifany legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to reçover from the losing party all ofi its costs of suit,  including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 458    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written. Grantor: By: Name: Title:  Anotary public or other officer completing this certificate verifies only the identity oft thei individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity ofthat document.  STATE OF CALIFORNIA COUNTY OF On  SS.  2024 before me,  Notary Public,  personally appeared  who proved to me on the basis of  satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity  upon behalf ofwhich thej person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws oft the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 459    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: City ofGonzales  By:  Name: Carmen Gil Title: City Manager  An notary public or other officer completing this certificate verifies only the identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On_ personally appeared  ) ) SS.  2024 before me,  Notary Public,  who proved to me on1 the basis ofs satisfactory evidence  tol be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s). on the instrument the person(s), or the entity upon behalf of which the  person(s). acted, executed the instrument. that the foregoing paragraph is true and correct.  Icertify under PENALTY OF PERJURY under the laws oft the State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 460    EXHIBIT A  Legal Description of the Easement Area  A-1  Packet Pg. 461    Grant Deed of Easement #2- Sanitary Sewer Easement APN 223-81-012 Avolem, LLC to City of Gonzales LEGAL DESCRIPTION  Situate within the Rancho Rincon de la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion ofl Lot 1 of Tract No. 1455, Vista de Santal Lucia, Gonzales Agricultural Business Park, as said lots are shown on the mapi recorded in Volume 23 of Cities and' Towns at Page  19, Official Records of said County, being particularly described as follows:  AS strip of land 151 feet in width lying 7.51 feet on either side oft the following described centerline: COMMENCING at a point on an existing 101 foot wide Public Utility Easement, said point being the northeasterly terminus of said Public Utility Easement; thence crossing said Lot 1, North 42° 49'30"  West, 5.491 feet tot the POINT OF BEGINNING 1) North! 53° 39'23" East, 28.98 feet; thence  2) North 41°5 51'22" West, 392.16 feet to a point on1 the northerly line of said Lotia and the end of  said strip.  Containing an area of 6,317, more or less. This legal description was prepared by:  EIGNAL LAND A. KQV o * CAL  dyakps Lynn A. Kovach P.L.S.5321 Date:. July 30, 2024  A-2  Packet Pg. 462    EXHIBITB Site Plan of Easement Area  B-1  Packet Pg. 463    2-8  -  Packet Pg. 464    Recording requested by: CITY OF GONZALES 147 Fourth Street Gonzales, CA 93926 And when recorded mail copy to: CITY OF GONZALES Public Works Department PO: Box 647 Gonzales, CA 93926 Nol Recordingi fee - Government Code $2 27383  Space above this line forl Recorder's use  GRANT OF EASEMENT  THIS GRANT OF EASEMENT (this "Easement Agreement") is made as of 2024, by Avolem LLC, a California limited liability company ("Grantor"), for the  benefit ofthe City of Gonzales, an incorporated City ("Grantee"), with reference to the following  recitals:  RECITALS  A. Grantor owns that certain real property commonly referred to as APN Nos. 223- B. Grantee has requested a permanent easement to operate, maintain, repair, enlarge, replace, and if elected by Grantee, abandon public utilities and appurtenances within (the "Easement. Purpose")aportion: ofthel Property: more particularly described on Exhibit Aattached hereto (the "Easement. Area"), and depicted on the site plan attached hereto as Exhibit  081-013 and 223-081-012, ini the County of] Monterey, State ofCalifornia.  B.  NOW,THEREFORE, inc consideration ofthei foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee aj permanent non-exclusive easement  to the Easement Area fort the Easement Purpose; and' for the further purpose ofingress, egress and passage across with all thei necessary materials, tools, supplies, and other equipment related to the Easement Purpose, together with ai right of way upon, over, under, through and across the Property to access the Easement Area (the "Easement"). Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill or other structures over thel hereinafter described Easement  Area.  Packet Pg. 465    2. 16, 2024. 3.  Compensation. Grantor acknowledges receipt of compensation from Grantee for  the Easement in accordance with the value of the property per the. Appraisal Report dated August  Maintenance. Grantor hereby grants to Grantee a perpetual non-exclusive  easement for maintenance and repair purposes over the Easement Area and such portions of the Property as arei reasonably necessary for such maintenance and: repair. Grantee shall bei responsible  for all costs associated with the Grantee's use of the Easement.  4.  No Gift or Dedication. Nothing contained in this Easement Agreement shall be  deemed to be a gift or dedication of any portion of the Property to or for the general public or for any public use or purpose whatsoever, it being the intention of the parties that the Easement and rights granted in this Easement Agreement shall be strictly limited to and for the purposes herein expressed with respect to private property solely for the benefit oft the parties and their respective  tenants, invitees and licensees.  5.  Mortgagee Protection. No breach or violation oft this Easement Agreement or of  the restrictions provided herein shall render invalid the lien of any mortgage, deed of trust or similar instrument securing a loan madei in good faith and for value with respect to any portion of the Property, but all of the provisions of this Easement Agreement shall be binding upon and effective against any subsequent owner (including any mortgagee or beneficiary under a deed of trust) who acquires title to the Property or any portion thereof, by foreclosure, trustee's sale, deed  in lieu ofi foreclosure, or otherwise.  6.  Notice ofMaterial Issue. Grantor shall promptly notify Grantee in writing ofa any 7. Governing Law. This Easement Agreement shall be governed by and construed  material issue or fact that may affect thel Easement. in accordance with the laws ofthe State ofCalifornia.  8.  Successors and Assigns: Covenants Running with the Land. This Easement  Agreement is binding upon and shall inure to the benefit of the parties and their respective successors and assigns, tenants, invitees and licensees. All of the provisions of this Easement Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, without limitation, Section 1457 et. seq. of the  California Civil Code. 9.  Severability. Ifany provision oft this Easement Agreement is prohibited or held to  be invalid, illegal or unenforceable for any reason, the parties hereto agree to the fullest extent permitted by law that (a) the validity, legality and enforceability oft the other provisions shall not be affected ori impaired thereby and (b) the parties hereto shall endeavor in good faith negotiations to replace the invalid or unenforceable provisions with valid and enforceable provisions, the economic effect of which comes as close as possible to that of the invalid or unenforceable  provisions.  10. Remedies. In the event of any breach or threatened breach of any provision ofthis Easement Agreement, the parties hereto may prosecute any proceedings at law or in equity to enjoin suchl breach ort threatened breach andi toi recover damages for any such breach. Ther remedies  2  Packet Pg. 466    permitted or available pursuant to thej provisions oft this Easement Agreement shall be cumulative  and in addition to any rights or remedies available at law or in equity.  11. Indemnification,  (a) Grantee shall indemnify, defend and hold Grantor, and its officers,  employees and agents (collectively, the "Grantor Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities,judgments and damages resulting directly from Grantee's exercise of any rights granted to Grantee under this Easement Agreement, provided that Grantee shall not be required to indemnify or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, judgment or damages arising from the willful ori negligent acts or omissions ofa Grantor Party. affiliates, contractors, employees and agents (collectively, "Grantee Parties") harmless from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly or indirectly from or related to Grantor's exercise ofany rights retained by Grantor under this Easement Agreement or arising from the willful or negligent acts or omissions ofa Grantor Party, provided that Grantor shall not be required to indemnity or hold Granteel harmless from and against anyl loss, claim, demand, costs, expense, lien, fine, penalty, liability,judgment or damages arising from the willful or negligent acts or omissions ofa Grantee  (b) Grantor shall indemnify, defend and hold Grantee, and its officers,  Party.  12. Counterparts. This Easement Agreement may be executed in any number of counterparts, each ofwhich shall be deemed an original, but all ofwhich when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature pagei is attachedi to any other counterpart: identical thereto except having additional signaturepages  executed by other parties to this Easement Agreement attached thereto.  13. Cost of Enforcement. If any legal or equitable action or proceeding is instituted by one party against the other to enforce or interpret any provision of this Grant, the party prevailing in such action shall be entitled to recover from the losing party all ofits costs of suit,  including, but not limited to, reasonable attorneys' fees awarded by the court.  [Signatures appear on the following pages]  3  Packet Pg. 467    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written. Grantor: By: Name: Title:  Anotary public or other officer completing this certificate verifies only thei identity oft the individual who signed the document to which this certificate is attached, and: not the truthfulness, accuracy, or validity oft that document.  STATE OF CALIFORNIA COUNTY OF On  SS.  2024 before me,  Notary Public,  personally appeared  who proved to me on the basis of  satisfactory evidence tol be thej person(s) whose name(s); is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity  upon behalfo ofwhich the person(s) acted, executed the instrument.  Icertify under PENALTY OF PERJURY under the laws oft the State of California  that the foregoing paragraph is true and correct.  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 468    IN WITNESS WHEREOF, this agreement is hereby executed on the day and year first  above-written.  Grantee: City ofGonzales  By:  Name: Carmen Gil Title: City Manager  An notary public or other officer completing this certificate verifies only thei identity oft the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.  STATE OF CALIFORNIA COUNTY OF On personally appeared  ) ) SS.  2024 before me,  Notary Public,  who proved to me on thel basis of satisfactory evidence  tol be thej person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the  person(s) acted, executed the instrument. that the foregoing paragraph is true and correct.  Icertify under PENALTY OF PERJURY under the laws ofthe State of California  WITNESS my hand and official seal.  (Seal)  Notary Public  Packet Pg. 469    EXHBIT A  Legal Description of thel Easement Area  A-1  Packet Pg. 470    Grant Deed of  Easement #1 Public Utility Easement APN 223-81-012 and 223-081-013 Avolem, LLC to City of Gonzales LEGAL DESCRIPTION  Situate within thel Rancho Rincon del la Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of Lots 1 and 2 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lots are: shown on the map recorded in' Volume 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described as follows:  A: strip ofl land 151 feet wide lying northwesterly of and contiguous to an existing 10f foot wide Public Utility Easement (P.U.E.) as shown on said mapi recorded in' Volume 23 of Cities and" Towns at Page  19, of Official Records ofs said County.  Containing an area of 6,556 square feet, more or less. This legal description was prepared by: Catps Lynn A. Kovach P.L.S.5321 Dated:. July 30, 2024  PAY OR LAND  /  OF CAL  A-2  Packet Pg. 471    EXHIBITB Site Plan of Easement. Area  B-1  Packet Pg. 472    2-8  e  Packet Pg. 473    GRANT OF TEMPORARY EASEMENT  THIS GRANT OF TEMPORARY EASEMENT (this Temporary  Easement") is made as of  2024, by Avolem LLC, a California limited  liability company ("Grantor"), for the benefit of the City of Gonzales, an incorporated City  ("Grantee"), with reference to the following recitals:  RECITALS  A. Grantor ownsi that certain real property commonly referred to as. APNI Nos. 223- B. Grantee has requested a temporary easement to perform the activity, more particularly described in Exhibit A (the Improvements", attached hereto and incorporated  081-013 and 223-081-012, in the County ofMonterey, State ofCalifornia.  herein by reference. C.  Grantee has requested temporary access to a portion of the Property more  particularly described on Exhibit B attached hereto (the Temporary Easement Area"), and  depicted on the site plan attached hereto as Exhibit C.  NOW, THEREFORE, in consideration of the foregoing recitals, the covenants hereinafter set forth, and for other good and valuable consideration, thei receipt and sufficiency  ofwhich arel hereby acknowledged, Grantor hereby declares as follows:  1.  Easement. Grantor hereby grants to Grantee a temporary easement to the  Temporary. Easement. Area for thel Improvements; and fort the further purpose ofingress, egress andj passage across with all the necessary materials, tools, supplies, and other equipment related to the Improvements, together with a right of way upon, over, under, through and across the  Property to access the Temporary Easement Area (the Easement").  2.  Term. The term of this Temporary Easement shall commence when  performance of the Improvements begins, no earlier than November 1, 2024, and shall automatically terminate upon completion of the Improvements or no later than May 1.2 2025. Grantee shall provide Grantor at least twenty-four (24) hours' notice prior to performance of any Improvements. Grantor shall grant no rights inconsistent with the reasonable exercise by  Grantee ofits rights under this Temporary Easement.  3.  Cost. TheGrantee: shall beresponsible forall costs and expenses associated with  performance of the Improvements, except for those cost or expenses resulting from the negligence or willful misconduct oftheGrantor. Seel Exhibit A forotherexceptions, ifany. Temporary Basement in accordance with the Appraisal Report, updated August 16, 2024. Value of the Temporary Easement was predicated on an appropriate land rent for the Temporary Easement area and duration. Total compensation for the Temporary Easement is $8,468.00, eight thousand, four hundred and sixty-eight dollars and zero cents.  4.  Compensation. The Grantee shall compensate the Grantor for the use of the  5.  Performance of the Improvements. Time is oft the essence with respect to the  performance of the Improvements, and to the extent reasonably feasible, the Grantee shall  diligently pursue completion ofthe Improvements.  Packet Pg. 474    6.  Safety. Grantee shall erect and maintain on the Property, as necessary,  reasonable safeguards for safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and  notifying owners and users of adjacent sites and utilities.  7.  Revocable Licenses and Termination. This Temporary Easement shall be  revocable by the Grantor only if the Grantee fails to comply with any provision herein. Revocation may not occur until Grantor has provided the Grantee with written notice of the alleged breach and at least ten (10) days to cure. During said 10-day period to cure, the Parties shall meet and confer regarding the alleged breach and potential cure. Notice to the Grantee of any alleged breach shall be sent to Patrick Dobbins, Public Works Director, 147 4th Street, Gonzales. CA. If Grantor terminates this Temporary Easement at any time after performance ofthe Improvements has commenced, but prior to the completion ofsuch Improvements, orif Grantor otherwise prohibits or impedes Grantee right to enter the Property hereunder, the Grantee shall not be liable for any actions, claims, suits, penalties, obligations, liabilities, or damages to the Property, environmental claims ori injuries toj persons, which may be caused by Grantee's performance of the Improvements pursuant to this Temporary Easement or arising out of or in connection with performance of the Improvements, whether such activities or performance thereofi is by Grantee or anyone directly or indirectly employed or under contract with Grantee, and whether such damage or claim shall accrue or be discovered before or after  the termination oft this Temporary Easement.  8.  Restoration of the Property. As part of the Improvements to the Property,  Granteeshall, atitsown cost and expense, restoret thel roperyloasupstantalysimlarcondition in which it was prior to Grantee's performance of the Improvements. Ini the event that Grantor terminates this' Temporary Easement foranyreason otherthan: aGrantee default and at any time after performance of the Improvements has commenced, but prior to the completion ofsuch Improvements, the Grantee shall notbeobligated torestoretheP Property as described herein. no termination of this Temporary Easement shall release the parties from any liability or obligation hereunder resulting from any acts. omissions or events happening prior to the  9.  Continuing Liability. ExcpasolerwisesetionthinthisTemporary Easement,  termination ofthis Temporary Easement and restoration oft the Property.  10. Counterparts. This Temporary Easement may be executed in one or more counterparts, eacho ofwhich shall bedeemed an original but all ofwhich togethershall constitute IN'WITNESS WHEREOF, thel Parties hereto have executed this Temporary Easement on  one and the sameinstrument. the date first written above. CITY OF GONZALES Carmen Gill, City Manager  OWNER By: Name  By:  Packet Pg. 475    EXHIBIT A Description of Work  The scope of work is as follows:  Installation, testing and commissioning ofnew 12-inch/24-inch PVC below grade gravity sewer pipelines, manholes, and appurtenances to support the City's upcoming  Industrial Wastewater Treatment Program.  Not included: 1.  Not Applicable  A-1  Packet Pg. 476    EXHIBITB  Legal Description of the Easement Area  B-1  Packet Pg. 477    Grant Deed of  Easement #3 Temporary Construction Easement APN 223-81-012 and 223-081-013 Avolem, LLC to City of Gonzales LEGAL DESCRIPTION  Situate within the Rancho Rincon de la Punta dell Monte, City of Gonzales, Monterey County, State of California, being a portion of Lots 1a and 2 of Tract No. 1455, Vista de. Santa Lucia, Gonzales Agricultural Business Park, as said lots are shown on the mapi recorded in' Volume 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described as follows: BEGINNING at the most northerly corner of said Lot 1; thence along the easterly line of said Lot 1 1) South 42° 49' 30" East, 403.97 feet to a point on the northerly line of Katherine Street, as said 2) Southwesterly, along the arc of a non-tangential curve, the center of which bears North 43" 03' 50" West, 1,049.31 feet distant, through a central angle of 02° 43' 49", for an arc distance of  street is shown on said" Tract No. 1455; thence along said northerly line  50.001 feet; thence departing said northerly line 3) North 42° 49'3 30" West, 25.02 feet; thence  4) Southwesterly along the arc ofar non-tangential curve, the center of which bears North 40" 16' 22" West, 1024.31 feet distant, through a central angle of 06" 47' 38", for an arc distance of  121.461 feet; thence  5) South! 56° 31'15" West, 217.81 feet; thence 6) South 51°31'15" West, 97.77 feet; thence 7) North 42° 48' 28" West, 16.46 feet; thence 8) North 51° 18' 56" East, 14.18 feet; thence 9) North 55° 06' 20" East, 297.171 feet; thence 10) North 53° 39'23" East, 129.761 feet; thence  11) North 41° 51'22" West, 366.521 feet to a point on1 the northerly line ofs said Lot 1; thence along  said northerly line  B-2  Packet Pg. 478    Grant Deed of  Easement #3 Temporary Construction Easement APN 223-81-012 and 223-081-013 Avolem, LLC to City of Gonzales  12) North 52°27'0 02" East, 39.701 feet toi the POINT OF BEGINNING.  Containing an area of0.55 acres, more or less. This legal description was prepared by:  LAND AY EE  0 OF CALI  daspns Lynn A. Kovach P.L.S.5321 Dated:. July 31, 2024  B-3  Packet Pg. 479    EXHIBITC Site Plan of Easement Area  C-1  Packet Pg. 480    2-0  Packet Pg. 481    REVISED APPRAISAL OF:  CITYOF GONZALES/AVOIEM: LLC PARTALTAKE-KATHERNE STI INDUSTRIAL LOTS GONZALES, MONTEREY COUNTY APNS2250810128.-013)  REQUESTED By:  Patrick Dobbins Public Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  APPRAISALASOF:  May 8, 2024  APPRAISED By:  John' W. Piini, MAI Greg Piini, MAI 263 Lincoln Avenue Salinas, CA 93901  Packet Pg. 482    PIINI REALTY  August 16, 2024 Patrick Dobbins Public' Works Director City of Gonzales 147 Fourth Street Gonzales, CA 93926  Re: Appraisal Report - Avolem LLC Katherine Street, Gonzales  Dear Mr. Dobbins:  Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as toi thet fair market value of one permanent Public Utility Easement (PUE), one permanent Sanitary Sewer Easement (SSE) and one Temporary Construction Easement (TCE) on two undeveloped industrial lots located within the Gonzales Business Park at 145 and 155 Katherine Street, Gonzales, Monterey County, California. The lots are owned by Avolem LLC and are identified as Assessor's Parcel Numbers (APNs)223- The PUE is a 15-foot-wide easement that encumbers 6,560t square feet. The SSE is a 15-foot-wide easement that encumbers 6,317tsquaref feet. The TCE is a 10-to-50-foot-wide temporary easement that adjoins the PUE and SSE and encumbers 23,958+ square feet of the subject property for a period of six months. These easements are being purchased by the City of Gonzales for an agricultural-industrial wastewater conveyance pipeline that is part of Gonzales' Industrial Wastewater Recycling Facility (IWRF) Based on the inspection of the property andi thei investigations and analyses undertaken, we havei formed the opinion that as of May 8, 2024, and: subject to the assumptions and limiting conditions seti forth int this  081-012and- -013. Thet two lots have a combined area of 4.44t gross acres.  project.  report, the value conclusions are as follows:  263 Lincoln Ave., Salinas, CA93901 I TEL 831-422-5327 I FAX 831-422-8280 1 PiniRealty.com  Packet Pg. 483    Mr. Patrick Dobbins  August. 16, 2024  Re: Appraisal Report- Avoleml LLC  Page ii  Fair market value oft thep parttaken as part oft the whole  Fair market value oft thel PUE Fairr market value oft the SSE Subtotal Damages & special benefits Damages Less: Special benefits Subtotal Value of thel TCE Total value oft the take  $32,472 $31,173  $63,645  $0 $0  $0 $8,468 $72,112  The appraisal report that follows consists of 38 pages and sets forth thei identification oft the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results oft thei investigations and analyses, and1 the reasoning leading toi the value conclusions.  Respectiulysubmites, AR  : MAI  GregPlini, MAI  Certified General Real Estate Appraiser State of California, BREA No. AG005214  Certified General Real Estate Appraiser State of California, BREA No. AG044270  Packet Pg. 484    TABLE OF CONTENTS  Transmittal Letter. Table of Contents. Introduction. Identification Extraordinary Assumption. Purpose of the Appraisal. Title. Property History Property Rights Appraised. Client of the Appraisal. Intended Users. Intended Use of the Appraisal.. Effective Date oft the Appraisal. Date of Report. Report Format. Exposure Time. Scope of Work. Regional Description. Regional Map. Location Map. Monterey County.. Gonzales Property Description. Aerial Photograph. Assessor's Parcel Map Subject Photographs. Location. Access  iii  10 11 12 12 12 13 14 14 Page iii  Appraisal Report - Avolem LLC  Packet Pg. 485    Land Area. Utilities.. Building Improvements Hazards. Assessed Valuation & Taxes. Land Use Policies. Highest & Best Use. Valuation Comments  14 14 14 15 15 15 15 16 17 27 30 30 31 31 32 33 35  Fair Market Value oft the property before the take.. Fair Market Value of the Part Taken.. Fair Market Value of the Remainder as Part of the Whole.. Fair Market Value of the Remainder Before Considering Special Benefits. Fair Market Value of the Remainder Considering. Special Benefits.. Fair Market Value of the Temporary Construction. Easement.  Compensation. Summary. Certifications. Limiting Conditions Addendum  Legal Description and Maps oft the Permanent and Temporary Easements  Qualificatons of the Appraisers  Appraisal Report- - Avolem LLC  Page iv  Packet Pg. 486    INTRODUCTION  IDENTIFICATION  This appraisal involves a partial take valuation of two undeveloped industrial lots owned by Avolem LLC and located within the Gonzales Business Park at 145 and 155 Katherine Street, Gonzales, Monterey County, California. The lots are located on the north side of Katherine Street, and are identified as Monterey County APNs 223-081-012 and -013. The gross land area of the subject property before the The partial take consists of i) a permanent PUE of approximately 6,560t square feet, ii) a permanent SSE of approximately 6,317t square feet, and ii) a TCE of approximately 23,958+ square feet. The public agency involved in this taking is the City of Gonzales as part of a project referred to as the Gonzales  take is 4.44t acres.  Industrial Wastewater Recycling Facility (IWRF) project.  ExTRAORDINARY ASSUMPTION  An environmental assessment report was not provided and we are not qualified to make such a report and/or environmental assessment. Without the benefit of an environmental assessment or hazardous material assessment report, this appraisal is predicated on the extraordinary assumption that there are no environmental conditions that adversely affect the value of the property. Therefore, this is an  "unimpaired valuation." Extraordinary Assumption Defined  An assignment-specfic assumption as oft the effective date regarding uncertain information used in an analysis which, iffound to bej false, could alter the appraiser's opinions or conclusions. 1  PURPOSE OF1 THE APPRAISAL address thet following:  The purpose of the appraisal is to estimate the "fair market value" of the of the real property in accordance with California eminent domain civil procedure codes. As per California law the appraisal will  1. the fair market value of the property before thei take; 2. thei fair market value of the part taken; 3. thei fair market value of the remainder: as part of the whole; 4. thet fair market value of the remainder before considering special benefits;and 5. thet fair market value of the remainder considering special benefits.  1 Uniform Standards of Professional Appraisal Practice (USPAP)-2018-2019 Edition. (The Appraisal Foundation,  2018).p.4.  Appraisal Report- - Avolem LLC  Page 5  Packet Pg. 487    Fair Market Value Defined  Fori the purpose of this appraisal, fair market value is defined as follows:  The fair market value oft the property taken is the highest price on the date ofv valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity fors so doing, each dealing with the other withj full knowledge of all the uses and purposes  for which the property is reasonably adaptable and available. 2  TITLE  According to the Monterey County Assessor's Office, title is vested as follows:  Avolem, LLC. PROPERTYHISTORY  The property was purchased by the current owner on March 10, 2017 for $1,499,000. The property has not sold since this purchase andi there have been not transfers of ownership oft the subject propertywithin the past five years. The property is not currently offered on the open market and we are not aware of  any purchase options and/or agreements affecting the property. The property rights appraised is thei fee simple estate.  PROPERTY RIGHTS APPRAISED Fee Simple Estate Defined  Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police  power, and escheat. 3  CLIENT OFT THE APPRAISAL INTENDEDUSERS  The client oft this appraisal is the City of Gonzales.  Thei intended users are the client and thei fee owner of the property. The appraisers are not responsible fora any unauthorized use of this report and are not responsible to any third-party users.  California Code of Civil Procedure - CCP $1263.320 (Amended by. Stats. 1992, Ch.7,Sec.. 2. Effective Jan. 1, 1993).  Dictionary of Real Estate Appraisal- - 6th Edition. Appraisal Institute, 2015,p.90.  Appraisal Report- - Avolem LLC  Page 6  Packet Pg. 488    INTENDED USE OF1 THE APPRAISAL  Thei intended use oft this appraisal isi fort the client's use pertaining to the purchase oft three easements on  the: subject property as part oft thel IWRF project. EFFECTIVE DATE OFT THE APPRAISAL  This appraisal assignment represents a current appraisal in which the effective date of the appraisal and  the valuation conclusion apply as of May 8, 2024.  DATE OF REPORT REPORT FORMAT  This appraisal assignment was conducted from May to August of 2024.  The report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and fori the intended use stated  above. ExPOSURETIME  Thet term "exposure time" is defined as  The estimated length of time the property interest being appraised would have been offered on the market prior to the potnetcolconsummotion ofas sale at market value on the effective date  oft the appraisal."  The industrial market at the north end of the Salinas Valley is very strong with good demand and few offerings at any given time. As a result, vacant industrial lots and good improved facilities tend to sell within at few months of being offered on the open market. Some offerings require an exposure time in excess of six months; however, these are generally overpriced and/or suffer from significant obsolescence. The subject property is located within a desirable industrial park and it is estimated that demand would be strong if it were offered on the open market. An exposure time of31 to 6 months is  considered reasonable and applied ini this analysis.  4lbid.p.83.  Appraisal Report- -A Avolem LLC  Page 7  Packet Pg. 489    SCOPE OF WORK  We appraised the subject easements for1 the City of Gonzales in May of 2024. This report is an update to the May 20241 report to only reflectac change int thet take areas. Forthel May 2024 assignment, the property was inspected on May 8, 2024. The inspection was from the road frontage with the scope of observing the layout and general characteristics of the property. In addition to our inspection, we reviewed parcel The gross land area oft the property is obtained from the Assessor's Parcel Map. The land areas within the proposed takes are obtained from the draft legal descriptions and take exhibits prepared by Polaris Land The valuation of the property is predicated on market data collected specifically for1 this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records, Multiple Listing Service (MLS)data, on-line: subscriptionservices such as CoStara and LoopNet, real The results of the investigations and the analyses conducted are presented in this appraisal report, and  maps, flood maps, aerial photographs and zoning maps of the property.  Surveying, copies of which are included int the addendum of this report.  estate appraisers, and brokers.  were prepared by John Piini, MAI, and Greg Piini, MAI.  Appraisal Report - Avolem LLC  Page 8  Packet Pg. 490    REGIONAL DESCRIPTION  REGIONAL MAP  Marina  Chuolar  GoogleEarth  LOCATION MAP  Gonzales Cityl Limits Boundary Subject Property Proposed Conveyance Line Futurel Industrial Wastewater Recycling Faciity  Gonzales  Appraisal Report- - Avolem LLC  Pages 9  Packet Pg. 491    MONTEREY COUNTY  Monterey County is oriented in a north to south direction parallel to the Pacific Ocean. It is bounded on the north by Santa Cruz County, on1 the south by San Luis Obispo County, on the east by San Benito, Kings, The largest oft the central coast counties, Monterey County has approximately 100 miles of coastline along the Pacific Ocean and averages 30 miles in width. The county contains 3,324t square miles or2,127,360t About 439,000 people currently residei inl Monterey County as ofthe 2020 Census, whichi is a! 5.7%i increase from the 2010 Census estimate of about 415,000. The majority of the county's population is located on the Monterey Peninsula and in the greater Salinas area. Over the past several decades, Salinas and the smaller Salinas Valley towns experienced the majority of the county's growth, as the price of land and housing is relatively affordable compared tot the Monterey Peninsula and the neighboring Santa Clara and Santa Cruz Counties. During this same period, the population on the Monterey Peninsula remained relatively stable duei to al limited: supply of land that is zoned and suitable for development. The physical and economic characteristics of the county are divided primarily between the Monterey Peninsula and Salinas Valley. The Monterey Peninsula communities of Pebble Beach, Carmel, Pacific Grove andl Monterey: aret tourist destinations for the northwesterly portion. Tothe south of the Monterey Peninsula is the world-renowned Big Sur Coast. Ont the eastern side of the county lies the Salinas Valley,  and Fresno Counties and on the west is the Pacific Ocean.  acres.  one of the chief egetable-producing regions in the United States.  Salinas Valley  The Salinas Valley is af fertile agricultural region bounded to the east by the Gabilan Mountain Range and tot the west by the Santa Lucia Mountain Range. The valley begins at San Ardo and widens and stretches This valleyi is one oft the premier fresh vegetable growing regions int the country and a majority oft thes salad greens consumed in the United States are grown here. Strawberries, head lettuce, leaf lettuce, broccoli, celery, artichokes and a variety of other vegetable crops provide Monterey County with approximately $4.6 billion in gross sales. Due to the intensity and the variety of crops grown, the Salinas Valley is Within the 100-mile stretch oft the Salinas Valley are individual farming districts, distinguished not only by location, but by farming characteristics associated with soil, climate and/or water. East-to-west, soil quality provides the distinction, as the soils on thev valleyi floora are, fori the most part, fertile clay and loamy soils that are well suited for growinga a variety of fresh vegetable crops. Along thei foothills of the Gabilan  approximately 100 miles to the Monterey Bay, near Castroville.  nicknamed "America's! Salad Bowl."  Appraisal Report - Avolem LLC  Page 10  Packet Pg. 492    Range (east side of the valley) and the Sierra de Salinas Range (west side) the soils are generally characterized by decomposed granite (DG) soils thati formed in alluvium from granitic and schistose rocks on alluvial fans and terraces. These soils are typically well-drained and suitable for growing a variety of crops; however, theygenerally require al higher degree ofi farm management as compared toi the soils on North-to-south, climate plays a significant role as the north end of the valley has a cool coastal climate, whereas the south end oft the valleyi is warmer: and windier during the growing season. Due primarily to climate, agricultural rents are higher at the north end of the Salinas Valley as compared to the farmland int the central and southern portion of the valley. In recent years though, this gap tightened due in part to an expansion of seed varieties, enhancement ini irrigation practices and1 the growth in thet food service segment of the produce industry which has increased the demand for leafy green vegetables such as  the valley floor.  spinach and leaf lettuces that have shorters growing periods.  GONZALES  Gonzales is centrally located within the Salinas Valley and is approximately 15 miles south of the City of Salinas. Thet town has a population of8 8,439 peoples. Overt the past several decades, thet town has grown as its proximity1 to Salinas andi its lower relative price of housing has brought ani influx of commuter-based This proximity to Salinas has also resulted in a recent expansion of the industrial district. Salinas has historically been thel headquarters of the agricultural industry; however, as the availability of vacant land within Salinas has become exhausted, several agricultural companies have expanded south into the Gonzales Business Park. The Gonzales Business Park (alsol known as the Santal Lucia Agricultural Industrial Park) is an 81-acre development that began int the mid-2000s. The park was originally divided into 16 lots Taylor Farms, Grower's Express and Pure Pacific Organics have all built vegetable processing facilities in this park over the past decade, and Papé Material Handing recently opened a new facility in 2021. Additionally, Mann Packing built a vegetable processing facility in 2018 immediately adjacent to the park Currently, there are eight lots within the park that remain undeveloped that have a combined area of  residents; however, thet town remains an agricultural-based community.  that ranged in size from 2.0to 12.7 acres.  but within the same industrial district.  31.29tacres.  5U.S. Census Bureau. 2022 Population Estimate Program (PEP).  Appraisal Report - Avolem LLC  Page 11  Packet Pg. 493    PROPERTY DESCRIPTION  AERIAL PHOTOGRAPH  Gtrvmits.  Ktherines Street  4  ASSESSOR'SPARCEL MAP PARCEIQUEST 9  TAX CODE AREA  COUNTY OF MONTEREY ASSESSOR's MAP BOOK 223 PAGE OB-1  PRO-SR MMESERU ENT 0  06-1 (4)  20/02 6  3)  M. 20/02  01-2  15  e. Lol PAR  20/02 -  01-2  20/02 VISTA TRACT DE NO. SANTA 1455 LUCIA RINCON DE LA PUENTE  RECORDED  DEL MONTE RANCHO  Appraisal Report - Avolem LLC  Page 12  Packet Pg. 494    SUBJECT PHOTOGRAPHS  SW view of Katherine Street frontage  NW view from Katherine: Street of  property's NE boundary  Appraisal Report- - Avolem LLC  Page. 13  Packet Pg. 495    LOCATION  The propertyi is located on the north: side of Katherine! Street in Gonzales and withini the Gonzales Business Park. Adjoining properties include Mann Packing's processing plant to the east, vacant industrial land to the west, Taylor Farms' processing plant to the south and opposite Katherine Avenue, and agricultural  farmland to the north that is outside oft the city limits boundary.  ACCESS  Access is provided by Katherine Street, which is at two-way collector street within the Gonzales Business  Park. The street frontages are improved with concrete curbs and gutters.  LAND AREA  According to the Monterey County Assessor's Parcel Map, the two lots of the subject property have a combined land area of 4.44t acres. Thet topography is level and near grade with the roadi frontage. The entire property is considered usable. The property dimensions are summarized as follows:  Lot Summary APN 223-081-012 223-081-013 Total Easements  Road Frontage Average Depth (Feet) 243.2 243.8 487.0  Gross Acres 2.25 2.19 4.44  (Feet) 403.0 391.3 397.1  Title to the property is currently subject to three easements; two of which are owned by the City of Gonzales and one is owned by D'Arrigo Bros. Thei two City of Gonzales easements include ai 10-foot-wide public utility easement that runs along the Katherine Street frontage, and a 20-foot-wide sanitary sewer easement that runs along the southwest boundary of APN 223-081-013. The D'Arrigo Bros easement is an irrigation water line and well easement that extends between the southeast corner and the northeast  corner. UTILITIES  The property is located within the city limits and available utilities include sanitary sewer, storm drainage, water, natural gas, electricity, andi telephone. These utilities are located along the street frontage and/or  are developed to the property boundary. BUILDING IMPROVEMENTS  There are no buildingi improvements on this property.  Appraisal Report - Avolem LLC  Page 14  Packet Pg. 496    HAZARDS Flood Hazard  Thej property is identified on FEMA's Flood Insurance Rate Map (FIRM) panel 06053C0414G (4/2/2009) as  being within Zone X, an area of minimali flood hazard.  Seismic Hazard  The property is located within a seismically active area of California but is not located within a Alquist- Priolo Special Studies Zone. The nearest fault is the Reliz Fault, which runs along the base of the Santa  Lucia Mountain Range, about 3t miles west oft the subject property.  ASSESSED VALUATION &TAXES summarized as follows: Assessed Valuation & Taxes  The assessed valuation and real estate taxes for the 2023-2024 tax year assigned to the property are  Assessed Values Improvement  2023-2024 Taxes Countywide &  APN 223-081-012 223-081-013 Total Average tax rate LAND USE POLICIES  Land Value $836,023 $836.023 $1,672,046  Value Total Value Direct Charges Agency Taxes Total Taxes $0 $836,023 $4,052.92 $9,558.86 $13,611.78 $0 $836.023 $3.943.52 $9.558.86 $13,502.38 $0 $1,672,046 $7,996.44 $19,117.72 $27,114.16  1.14%  The property is located within an Industrial () zoning district as part of the Gonzales Business Park. The intent of this district is ' to provide for general industrial, manufacturing, wholesale, and service uses needed byt the city and regions subject to regulations necessary to protect other nearby uses from hazards, noise and other disturbances" (12.88.010). Zoning policies allow a variety of commercial andi industrial uses witha a conditional use permit. The minimum lot size is 10,000 square feet. The maximum floorarea  ratioi is 50%. HIGHEST & BEST USE  Highest and best use is defined as follows:  The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial  feasibility, and maximum, productivity.s  6Dictionary of Real Estate Appraisal- 6th Edition. (Chicago: Appraisal Institute, 2015)p.109  Appraisal Report - Avolem LLC  Page 15  Packet Pg. 497    Thep propertyisl located withint the Gonzales Business Park where land use policies and adjoining properties are oriented toward and being developed for an industrial use. Due to the location oft this property, the strong demand that exists for vacant industrial land, andi thes shortage of vacant industrial land that exists throughout the Salinas' Valley, the highest and best use isi industrial; andi the most probable industrial use is an agriculture-related industrial use, which is consistent with the recent developments within the  Gonzales Industrial Park. VALUATION COMMENTS  The purpose oft the appraisal is to estimate the' "fair market value" ofthe real propertyi in accordance with California eminent domain civil procedure codes. As per California law the valuation process involves  several steps which are summarized as follows:  1) the fair market value of the property before thei take; 2) thei fair market value oft the part taken; 3) thet fair market value oft the remainder as part of the whole; 4) thet fair market value of the remainder before considering special benefits; and 5) thei fair market value oft the remainder considering special benefits.  Appraisal Report- -A Avolem. LLC  Page 16  Packet Pg. 498    FAIR MARKET VALUE OF THE PROPERTY BEFORE THE TAKE  SALES-COMPARISON. APPROACH  Before the take, the property consists of two legal lots that have a combined land area of 4.44t acres. The fee simple value of industrial land is predicated on the sales comparison approach. The sales comparison: approach provides an opinion ofv value derived by analyzing and comparing similar properties that have recently sold, are listedi fors sale, or are under contact. Ar major premise oft the sales comparison approach is that the market value of a property is related to the prices of comparable, competitive properties. The unit of comparison commonly applied to industrial land is the price per usable square In applying the sales comparison approach, a number of sales have been considered, of which the  foot and which unit of comparison is applied int this analysis.  following sales are. judged to be the most comparable andi indicative ofv value:  Summary oflands Sales Sale number Salec date Location City Assessor's parcelr number Grantor Grantee Zoning Gross acreage Neta acreage Salep price Improvement: allocation Landa allocation Price per squaref foot  7/2/2022 Salinas Harrod Bodega Land Grp Salinas Rossi uc Ind.E Bus. Park (IBP) 3.30 3.30 $1,625,000 $100.000 $1,525,000 $10.61  6/7/2023 12/22/2021 Gonzales Rava Ind.() Heavy Comm. (HC) 2.69 2.56 $1,406,500 $0 $12.61  9/25/2023 Salinas Gonzales T&A Bodega Land Grp Slama Trebino 4.64 2.84 4.64 2.35 $3,000,000 $1,600,000 $0 $0 $14.84 $15.63  5/19/2022 Salinas Frieberg 851 Salinas uC Penske Sonsrayl uc 5.68 5.68 $4,500,000 $500.000 $4,000,000 $16.17  3/31/2022 Salinas  245V W.F Rossi St 142 Bodega 3Spreckels Blvd 122 Bodega 795 ElveeD Dr 851 WorkSt 003-161-014 223-081-018 177-071-013 223-081-019 003-701-010 003-461-011  Ind.() Ind. Gen.( (IG) Ind. Gen. (IG)  4.43 3.25 $2,300,000 $o $2,300,000 $16.25  $1,406,500 $3,000,000 $1,600,000  Appraisal Report- - Avolem LLC  Page. 17  Packet Pg. 499    Sales Location Map  Google  Sale 1:245 West Rossi Street, Salinas Sale 1isa2022s sale ofa3.3-acre parcel located on West Rossi Street in Salinas. This location iswithin a secondary industrial area that is removed from Salinas' primary industrial districts, and zoned Industrial Business Park (IBP), which is a more restrictive zoning This property has a rectangular shape that is bounded by Rossi Street to the north, a  district.  reclamation ditch to the east and south, and other industrial lands to the west. Thet topography is mostly level and at road grade; however, the eastern 1/3 of the property steps down several feet to a lower elevation. In order to build on the site, some grading or fill will likely be required. Development of this property will also require a setback from the reclamation ditch, which could be upwards of 1001 feet from The property sold for $1,625,000, or about $11.30 per square foot, for a distribution use. According to the broker, the seller had previously paid about! $100,0001 toward traffic, school, and sewer fees.  the top of the bank.  Appraisal Report - Avolem LLC  Page 18  Packet Pg. 500    Sale 2: 142 Bodega Drive, Gonzales Sale 2i isaz 2023 sale ofa al lot located within the Gonzales Business Park. This sale involves a 2.69-acre lot that has a rectangular shape. The lot has al levelt topography andi is accessed byaright-ofwayt that extends from Katherine Street's cul-de-sac. The right-of-way is not developed and, therefore, developing this property will require extending roads and utilities approximately 390t feet from Gesktath Katherine Street to the north corner of this  property. There is an additional right-of-way on the west side of the property that extends to Gonzales River Road; however, this is also undeveloped and would require extending a road over 650 feet to the southwest corner as well as possible frontage improvements to Gonzales River Road. The usable areai is estimated at 2.56 acres, which only excludes the right-of-wayalong: the east side of the property. The right-of-way: alongt the west sidei is not excluded as this right-of-way would only benefit this This property and Sale 4 were owned by the same seller and were offered together. This lot sold first in June of 2023 to the adjoining property owner for $1,406,500, or about $12.62 per square foot. The seller was reportedly under pressure tos sella at least one of thet two lots. In comparisontoi thes subject, thes seller's  lot and the lot to the north, which are both under common ownership.  motivation and access are inferior. Al higher value applies to the subject property.  Sale 3:35 Spreckels Blvd, Spreckels Sale 3 is a 2021 sale of a 4.64-acre parcel located at the Highway 68/Spreckels Boulevard interchange, approximately 1% miles south of Salinas and just east of the This locationi isi int thec county and withinasmall pocket that is zoned Heavy Commercial. Land uses in this area include a mixture of professional offices, mini-storage and light  Salinas River.  industrial.  Appraisal Report - Avolem LLC  Page 19  Packet Pg. 501    The property has an irregular shape withi frontage along Spreckels Boulevard and Spreckels Lane. Access is provided by Spreckels Lane. The property has a level topography but is mostly in the flood zone. Therefore, developing the property will likely require fill to raise the finished floor of any building above Improvements are limited to perimeter cyclone fencing and yard lighting. Water and septic are not currently developed on this property. Development will require installation of a well and septicsystem.  the flood elevation.  The property sold for $3,000,000, or $14.84 per square foot.  Sale 4: 122 Bodega Drive, Gonzales Sale 4 is a 2023 sale of a lot located in the Gonzales Industrial Parka andi tot thei immediate south of Sale 2. This lot measures 2.71 acres and has a rectangular shape. The sale also includesa0.13-acre stript that connects thel lot to Gonzales River Road, and a gross land area  of2.84 acres.  This lot has access from Katherine Street bya bshtn 30-foot right-of-way (15 feet are on this  property) that extends from Katherine: Street tot the north corner of this lot, and access to Gonzales River Road by a 60-foot right-of-way (401 feet are on this property) that extends from Gonzales River Road and along the west boundary of this lot. Both access rights-of-way are undeveloped and, therefore, developing this propertywilrequire extending road and utilities toi the property from atl least oneofthese The usable land areai is estimateda at2.35 acres, which excludes the 0.13-acre parcel and the 60-foot right- of-way along thev west side oft the property ast this right-of-way alsol benefits the adjoining lotsi tot the north. The 30-foot right-of-wayi is not excluded as this right-of-way predominately benefits this lot. The property sold for $1,600,000, or $15.64 per square foot. The seller had recently sold the lot to the north (Sale 2) and was no longer under pressure to sell quickly. Therefore, the seller held out forah higher price, which they obtained. In comparison to the subject, the lack of direct road frontage and access are  access points.  inferior and al higher per square foot value applies toi the: subject property.  Appraisal Report - Avolem. LLC  Page 20  Packet Pg. 502    Sale 5:7 795 Elvee Drive, Salinas Sale! 5isa5 5.68-acre property located on Elvee Drive within Salinas. Thep propertyfrontsalong the west side of Highway 101 and has good The property has an irregular shape that is bounded by Highway: 101 tot the northeast and an reclamation ditch to the southwest. The topography is level and the entire propertyi is considered usable. Previously, the property  highway exposure.  was used as a commercial truck dealership and was improved with a 20,000-square foot building. The building was destroyed by at fire in 2021. The improvements that remain include the concrete footings The property sold for $4,500,000, or $18.17 per square foot, to Penske, whoi intends to rebuild the prior structure and use the property for a similartruck dealership use. There are signifiçant cost savings being able to rebuild a structure as compared to building new, including site improvements, utilities, and development impact credits from the prior structure. The sale is allocated $500,000 toward these improvements and development credits, and $4,000,0001 for the land, or $16.17 per square foot.  and yard improvements.  Sale 6:8 851 Work Street, Salinas Sale6isa4,43-acre lotl located int the Growers- Shippers development in Salinas. This subdivision consists of 46t acres that are bound between the Ottone Business Park to ther north and Sanborn Road to thesouth. The zoning is Industrial-General (IG). This property has at triangular shape with 754t feet of roadi frontage along Work Street that is improved with concrete curbs, gutters, and  sidewalks. The northeast boundary extends into Reclamation Ditch #1665 and there are approximately 1.18t acres within the reclamation ditch or within a lower bench adjacent to the reclamation ditch that are within the 100-year flood zone. The usable acreage is estimated at 3.25t acres which have a level  topography that is at grade with the road frontage.  Appraisal Report - Avolem LLC  Page 21  Packet Pg. 503    The property sold in 20191 for $2,300,000 or $16.25 per usable square foot. The sellers of the property werei in the process of selling their business to the buyers. This parcel was not included in the business purchase, and sold: separately to the buyers based upon al broker's opinion of market value. Prior to the sale, the buyers had obtained a use permit for their proposed use; however, it is our understanding that the price was predicated on the property's land value, exclusive ofa any entitlement value.  Sale Adjustments Market Conditions  The sales occurred from 2021 to 2023. Industrial land values have appreciated over the past few years due largely tot the lack of available vacant land. The more recent sales indicate that prices have increased  over the past few years, as indicated byt the below comparisons:  Market Conditions Adjustment Sale number Sale date Address City Grantor Grantee Gross acreage Neta acreage Saleprice Improvement: allocation Land allocation Price per net squaref foot Comparison to Sale6 Time difference (years) %d diffrence Average: annual %c change Comparison tos SaleZ Time difference (years) %diffrence Average annual %0 change  n/a and n/a 1/4/2019 3/26/2019 851 WorkSt 791 WorkSt Salinas Salinas 1508 Abbott LLC Gakhal Prop. 851 Salinas LLC Slama 4.43 5.68 3.25 4.00 $1,865,000 $2,099,880 $0 $0 $1,865,000 $2,099,880 $13.17 $12.05 3.38 3.15 22.7% 34.1% 6.7% 10.8% 3.24 3.01 23.3% 34.8% 7.2% 11.5%  to  5 5/19/2022 795 Elvee Dr 851 WorkSt Salinas Frieberg 851 SalinasLLC Penske 5.68 5.68 $4,500,000 $500,000 $4,000,000 $16.17  3/31/2022 Salinas Sonsraylc 4.43 3.25 $2,300,000 $0 $2,300,000 $16.25  Appraisal Report- - Avolem LLC  Page 22  Packet Pg. 504    Market Conditions, Adjustment Sale number Sale date Address City Grantor Grantee Gross acreage Net acreage Salep price Improvement: allocation Land allocation Price per net squarei foot %c change Timec difference (years) Annual %change  n/a 3/24/2020 162 Bodega Dr Gonzales Manhattan/ Assoc Bodega Land Grp 2.69 2.56 $1,113,500 $0 $1,113,500 $10.00  VS  and  4 9/25/2023 122 Bodega Gonzales Bodega Land Grpl Trebino 2.84 2.35 $1,600,000 $0 $1,600,000 $15.63 56.2% 3.5 16.1%  6/7/2023 142 Bodega Gonzales Bodega Land Grp Rava 2.69 2.56 $1,406,500 $o $1,406,500 $12.61 26.1% 3.2 8.1%  The preceding tables indicate an average percentage change of 6.7% to 16.1% over the past few years. Based in part on these comparisons, an upward adjustment of 7.5% per year is applied to the 2021 and 2022 sales. The sales are only adjusted through the end of June 2023 as it is questionable if land values continued to appreciate during the second half of 2023 and: 2024. The 2023: sales are considered current,  and a market conditions adjustment is not applied.  Location  Sales 2 and 4 are located within the Gonzales Business Park: and are comparable to the subject property. The remaining properties are located within Salinas and Spreckels, which have historically commanded higher values than Gonzales. However, the difference in land values between these more northerly To estimate the difference between Salinas and Spreckels to Gonzales, the following comparisons are  communities and Gonzales is narrowing as the supply of available land diminishes.  considered:  Appraisal Report- - Avolem LLC  Page 23  Packet Pg. 505    Location Adjustment Paired. Sale Comparison: #1 Sale number Sale date Address City Net acreage Salep price Price per squaref foot %d difference  n/a 8/20/2018 681 WorkSt Salinas 2.10 $1,055,000 $11.53  to  n/a 1/19/2018 162 Bodega Gonzales 2.56 $997,000 $8.94 -22.5%  Paired. Sale Comparison#2 Sale number Sale date Address City Net acreage Saleprice Price per squaref foot %0 difference  n/a 3/26/2019 791 WorkSt Salinas 4.00 $2,099,880 $12.05  to  2 3/24/2020 162 Bodega Dr Gonzales 2.69 $1,113,500 $9.50 -21.1%  Paired Sale Comparison#3 Sale number Sale date Address City Net acreage Salep price Price per squaref foot Market conditions adjustment Adjusted price Site work adjustment Adjusted price %d difference  6 3/31/2022 851 Work St Salinas 3.25 $2,300,000 $16.25 9.4% $17.77 0.0% $17.77  to  9/25/2023 122 Bodega Gonzales 2.35 $1,600,000 $15.63 0.0% $15.63 7.5% $16.80 -5.4% Page 24  Appraisal Report- - Avolem LLC  Packet Pg. 506    The above table indicates a difference of -5.4% to -22.5% with the oldest comparison indicating the highest indication and the most recent comparison indicating thé lowest indication. A downward adjustment of- -10% is applied to! Sales 5a and 6a and al lower adjustment of- -5% is applied to! Sale3 3.  Site Work & Utilities  Most of the sales are fairly comparable to the subject property in regard to site work and utilities; however, Sale 1 will require fill as 1/3 of the property is on a lower bench, Sales 2 and 4 will require extending roads and utilities to their boundaries, and Sale 3 will require fill as part of the property is in thei flood zone as wella ast the development ofawell and septic system. An upward adjustment of5to10%  isappropriate and from which a7.5% adjustment is applied to these sales.  Size  The sales range in size from 2.351 to 5.68 acres whereas the subject property is 4.44 acres. The sales are  within a reasonable range of the subject and a size adjustment is not applied.  Adjustment. Summary  The adjustments applied toi the sales are: summarized as follows:  Summaryo ofl Land Sale Adjustments Sale number Saled date Location City Gross acreage Neta acreage Saleprice Improvement allocation land allocation Landa allocation pers sq.ft. Market conditions adj. Time difference! (years) Adj. @ 7.5% per year Adjusted price per sq.f ft. Percenta adjustment Locationa adjustment Sitev work & utilities Size Total percent adjustments Adjusted price per sq.ft.  5 5/19/2022 Salinas 5.68 5.68 $500.000 $4,000,000 $2,300,000 $16.17 1.1 8.4% $17.52 -10.0% 0.0% 0.0% -10.0% $15.77  7/2/2022 Salinas 3.30 3.30 $1,625,000 $100.000 $1,525,000 $10.61 1.0 7.5% $11.40 0.0% 7.5% 0.0% 7.5% $12.26  6/7/2023 12/22/2021 Gonzales 2.69 2.56 $1,406,500 SO $1,406,500 $12.61 0.0 0.0% $12.61 0.0% 7.5% 0.0% 7.5% $13.56  9/25/2023 Gonzales 2.84 2.35 $0 $15.63 0.0 0.0% $15.63 0.0% 7.5% 0.0% 7.5% $16.80  3/31/2022 Salinas 4.43 3.25 $o $16.25 1.3 9.4% $17.77 -10.0% 0.0% 0.0% 10.0% $15.99  245 W.F Rossi St 142 Bodega 3Spreckels Blvd 122 Bodega 795 Elveel Dr 851Workst  Salinas 4.64 4.64 $3,000,000 $0 $3,000,000 $1,600,000 $14.84 1.5 11.4% $16.54 -5.0% 7.5% 0.0% 2.5% $16.95  $1,600,000 $4,500,000 $2,300,000  Appraisal Report- - Avolem LLC  Page 25  Packet Pg. 507    The above table provides an adjusted range of $12.261 to $16.95 pers square foot. Sale 1 provides the lowest indication but in light oft the other sales, al higher value applies.  Sale 2 provides the next lowest indication and while this is a sale within the Gonzales Business Park, the The remaining sales provide a range of $15.77 to $16.95 per square foot and a value within this range is  seller was under pressure for a quick sale and the price paid was below market.  appropriate.  Fair Market Value Conclusion $16.50 per square foot. Hence, Land area (acres) Land value per squaref foot Land value Rounded to (nearest. $1,000)  Based on the previous analysis, the fair market value of the property before the take is concluded at  4.44 $16.50 $3,191,206 $3,191,000  Appraisal Report - Avolem LLC  Page 26  Packet Pg. 508    FAIRI MARKET VALUE OF1 THE PARTTAKEN  As per the legal descriptions of the takes, which are included in the addendum, the parts taken are  depicted as follows:  Public Utility Easement (PUE) Sanitary Sewer Easement (SSE) Temporary Construction Easement (TCE)  u Existing Easements  20' Wide Existing Water and Well Easement Per  Doc. #2017013449 23-C8T-19 AvolemlLC  APN223-081-013 Lot2 23-C&T-19  APN:223-081-012 Lotl 23-C&T-19  New 15 wide SS Easement #3 New TCE  New. 15 wide PUE Existing PUE  10 wide Per 23-C&T-19  Katherine Street (ACity Road 60" Wide)  The PUE is a 15-foot-wide permanent easement that encumbers 6,560+ square feet. The easement runs to the immediate north of an existing 10-foot-wide easement that runs along the southeast property The SSE is a 15-foot-wide permanent easement that encumbers 6,317t square feet. Approximately 5,077+ square feet of this easement overlap an existing 20-foot-wide water and well easement that runs The TCE runs adjacent to both easements. According to the legal description included ini the addendum, the easement encumbers 0.55t acres (23,958+ square feet); however, this includes the land within the SSE. Omitting the land within the SSE, the TCE encumbers an additional 17,641t square feet.  boundary.  along the northeast boundary.  Appraisal Report - Avolem LLC  Page 27  Packet Pg. 509    Take Summary APN 223-081-012 223-081-013 Total  Easement #1 PUE 2,903 3,657 6,560  Easement #2 SSE 6,317 0 6,317  Easement #3 TCE 20,301 3,657 23,958 6.317 17,641  Less: Area within Easement #2 Area outside of existing easements EASEMENT #1 (PUBLIC UTILITY EASEMENT)  The fair market value of the property before the take was concluded at $16.50 per square foot. The fair market value ofthe PUE would be less than thei fees simple value becauset thef fee owner retains use of the The 15-foot-wide PUE would preclude an owner from building a structure within the easement area; however, the southerly 10-feet of the PUE is already precluded by the City's Industrial zoning ordinance as it is located within a 20-foot setback from thei front of the property. The remaining 51 feet of the PUE are outside of the 20-foot setback and could affect the placement of any structure. However, it is considered unlikely that any structure would be placed this closei tot thes streetfrontage. Most users would likely use this areai for landscaping, parking, and driveways-allo lofwhich can stillo occur over the easement These frontage areas are often used for storm water detention ponds and this easement would preclude this type ofi improvement; however, storm water detention is already provided off-site and would not be While the PUE can affect the layout of the property's site improvements and could result in future disruptions pertaining to access, maintenance, replacement, or installation of utilities within the PUE, the PUE willl have a minimal effect on the probable use and value of the property. Therefore, thei fair market value of the partt taken would be morethan 0% andl lessi than! 50% oft thef fees simple value, andi is concluded  easement areai for landscaping, driveways, and: surface parking.  area.  required on1 this property.  at 30.0%, as follows:  Appraisal Report-A Avolem LLC  Page 28  Packet Pg. 510    Inside. 20-Foot Setback 20-Foot Setback 4,373 $16.50 25.0% $4.13 $18,040  Outside of 2,187 $16.50 40.0% $6.60 $14,432  Description PUEI land area (squaref feet) % of fee simplevalue  Total 6,560 $16.50 30.0% $4.95 $32,472  Fees simplel land valuep per square foot beforet the take Fair market valuep per squaref foot of the partta taken Fair market value of the part taken EASEMENT #2 (SANITARY SEWER EASEMENT)  Thei fairr market value of the SSE would also! be less thant thet fee simple valuel because thet fee ownerr retains use of the easement area for landscaping, storage drainage, driveways, and surface parking. However, most oft this easement isl located within an existing 20-foot-wide water andy well easement, which already restricts the utility oft this land. The remaining areas of the SSE that are outside oft the existing easement could affect the placement of buildings andi the overall layout of the property. The SSE could also result in future disruptions pertaining to access, maintenance, replacement, or installation of pipelines within For that portion oft the SSE1 thati isl located withini the existing easement, its effect on value would be similar tot that portion oft the PUE thati isl located within the 20-foot front setback area. Therefore, thei fair market For that portion of the SSE that is located outside of the existing easement, the fair market value of the part taken would be fairlys significant because it could affect the placement of building improvements and the overall layout of the property. The fair market value of this portion would be greater than what applied to that portion of the PUE1 that is located outside the 20-foot front setback area, as it will have a greater effect on use. The fair market value of this portion of the SEE is concluded at 50.0% of the fee  the SSE.  value oft this portion oft the SSE is concluded at 25.0% of thet fees simple value.  simple value. Hence,  Overlapping Outside of Existing Existing Water& Water & Pipeline Pipeilne Easement  Description SSE land area (squaref feet) % of fee simple value  Easement 1,240 $16.50 50.0% $8.25 $10,230  Total 6,317 $16.50 29.9% $4.93 $31,173 Page. 29  5,077 $16.50 25.0% $4.13 $20,943  Fees simplel land value per squaref foot beforet thet take Fair market value per squaref foot oft thep partt taken Fair market value of the part taken Appraisal Report - Avolem LLC  Packet Pg. 511    EASEMENT #3 (TEMPORARY CONSTRUCTION EASEMENT)  The value of the TCE is considered later as iti is only at temporarytaking. The fair market value oft the part taken is concluded as follows:  FAIRI MARKET VALUE OF1 THE PARTTAKEN  Value per Square Foot $4.95 $4.93  Description Fair market value oft the PUE Fair market value oft thes SSE Fair market value oft the part taken  Square Feet 6,560 6,317  Value $32,472 $31,173 $63,645  FAIR MARKET VALUE OF THE REMAINDER ASI PART OF THE WHOLE  Thei fair market value oft the remainder as part oft the whole ist thet fair market value oft the property before  the take less thei fair market value oft the part taken, which is calculated ast follows:  Fair market value oft thep property beforet thet take Fair market value oft thep part taken Fair market value oft theremainder as part of they whole  $3,191,000 $63.645 $3,127,355  FAIR MARKET VALUE OF THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS  After the PUE: and SSE are taken, the land to the north and west oft these takes retains thes same utility as to what existed before the take. This area would retain ai fair market value of $16.50 per square foot,  indicating no damages. Hence,  Fair market value oft ther remainder as part oft the whole  $3,127,355 $0 $3,127,355  Damages  Fair market value oft the remainder after the take before considering special benefits  Appraisal Report - Avolem. LLC  Page. 30  Packet Pg. 512    FAIR MARKET VALUE OFT THE REMAINDER CONSIDERING SPECIAL BENEFITS  The project does not provide special benefits. Therefore, the fair market value oft the remainder: afterthe  take anda afterconsidering: special benefits is as follows:  Fair market value of ther remainder after thet takel beforec considering: special benefits Fair market value oft the remainder after the take after considering special benefits  $3,127,355 So $3,127,355  Special benefits  FAIRI MARKET VALUE OF THE TEMPORARY CONSTRUCTION EASEMENT  A1 TCE is required for constructing the project. According to the legal description of the TCE, the TCE encumbers approximately 23,958t square feet, including the land within the SSE. Excluding the land within the SSE, the net area encumbered by the TCE is 17,641t square feet. The easement would The value oft the TCE is predicated on an appropriate landi rent for the TCE fori its duration. Industrialland rents generally range from $0.055 to $0.12 per square foot, with rents between $0.055 and $0.08 per square foot generally applying to unimproved industrial land, and rents above $0.08 per square foot generally applying toward land with site improvements, such as perimeter fencing and base rock. The appropriate rent for this property would fall within the $0.055 to $0.08 per square foot range as iti is To refine the rental range fort the TCE, consideration is given to an appropriate return on land value. The fee simple land value was previously concluded at $16.50 per square foot. A 6.0% rate of return is applicable, indicating a land rent of $0.083 per square foot per month, which is slightly higher than the expected range. Therefore, a rent of $0.08 pers square foot is concluded: ast thei fair market rent ofthe TCE.  encumber the property for six months.  unimproved land.  Hence, the value of the TCE is concluded ast follows:  Appraisal Report- -AvolemLLC  Page. 31  Packet Pg. 513    TCEI land area (squaref feet), excluding the land area within the SSE  17,641  Land rent Fees simpleland value Required rate ofreturn Rent per squaref foot per year  $16.50 6.0% $0.99 $0.083  Indicated monhtly rent based upon ar return on land value Market rent per squaref foot applied in1 this analysis Estimated duration oft thel TCE( (months) Fair market value oft the TCE  $0.080 6.0 $8,468  COMPENSATION SUMMARY  Fair market value of thep parttaken as part of the whole  Fair market value of the PUE Fair market value of the SSE Subtotal Damages & special benefits Damages Less:Special benefits Subtotal Value of the TCE Total value of the take  $32,472 $31,173  $63,645  $0 $0  $0 $8,468 $72,112  Appraisal Report- - Avolem LLC  Page 32  Packet Pg. 514    CERTIFICATION  Icertify that, tot the best of myl knowledge and belief:  The: statements ofi fact contained int this report are true and correct. -  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest ini the property that is the subject of this report, and no lappraised the same easements in 2023 and 2024 for the City of Gonzales but have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject oft this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As of the date oft this report, John W. Piini, MAI has completed the continuing education program  opinions and conclusions.  personal interest with respect to the parties involved.  assignment.  involved with this assignment. predetermined results.  subsequent event directly related tot the intended use of this appraisal.  Appraisal Institute. certification.  by its duly authorized representatives. for Designated members of the Appraisal Institute.  Aphn  W. Piini, MAI  AE  Certified General Real Estate Appraiser State of California, BREA Number AG005214  Appraisal Report - Avolem LLC  Page 33  Packet Pg. 515    CERTIFIÇATION  Icertifythat, to the best of my knowledge and belief:  The statements of fact contained in this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, Ihave no present or prospective interest in the property that is the subject of this report, and no lappraised the same easements in 2023 and 2024 for the City of Gonzales but have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this Ihave no bias with respect to the property that is the subject of this report or to the parties My engagement in this assignment was not contingent upon developing or reporting 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 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Ihave made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this The use of this report is subject to the requirements of the Appraisal Institute relating to review As of the date ofthis report, Greg Piini, MAI has completed the continuing education program for  opinions and conclusions.  personal interest with respect tot the parties involved.  assignment.  involved with this assignment. predetermined results.  subsequent event directly related toi thei intended use of this appraisal.  Appraisal Institute. certification.  by its duly authorized representatives. Designatedmembers: of the Appraisal Institute.  Certifhed-General Real Estate Appraiser State of California, BREAI Number AG044270  &  Appraisal Report - Avolem LLC  Page 34  Packet Pg. 516    LIMITING CONDITIONS  Assumptions and Limitations of Appraisal  This appraisali is for no purpose othert than propertyvaluation, andi the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations toi the accuracy oft thei information and analyses contained int this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read  this entire section to understand these limitations.  Appraisali is not al Legal Opinion discussed in the report.  No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumedi to be marketable andi free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed int the report. The! property isa appraised assuming it to be under responsible ownership and competent management and available Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affectingt the subject property was not performed for Itis assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation. Any significant question should be addressed to local zoning or land use officials and/or an attorney. Iti is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested partyl has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and  fori its highest and best use.  this appraisal.  regulations affecting the subject property.  Appraisal Report - Avolem LLC  Page 35  Packet Pg. 517    Testimony or attendance in court or at any other hearing is not required by reason of rendering this  appraisal unless a signed contract has been executed prior to the date oft this report.  Appraisal is not a Survey  No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment ofr real property improvements is assumed to exist. Iti is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described andi that there is no encroachment or trespass unless noted in the report. All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any" other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used asa general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for No opinion is expressed as to the value ofs subsurface oil, gas or mineral rights and that the property is not subject to surface entryt fort the exploration or removal of such materials except as is expressly stated.  encroachments, or other survey matters.  Limited Data  matters ini this report should be considered preliminary in nature.  other components  any such condition ori for any expertise or engineering to discover them.  Appraisal Report - Avolem LLC  Page 36  Packet Pg. 518    No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted ini the report. Itis further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise notedi int the report. Ifany problems of this nature are knowni tot the appraiser(s) which, ini the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not bet taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. Ifit is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested partyi is concerned abouti the existence, conditionor: adequacy of any particular item, we would  additional cost willl be necessary to estimate the effects of such.  strongly suggest that a construction expert be hiredi for a detailed investigation.  Appraisal Report Limitations  Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or1 the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to bei important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue  provided by others, etc.  additional data gathering for a higher level of certainty.  Appraisal Report -Avolem LLC  Page 37  Packet Pg. 519    Opinions and estimates expressed herein represent the appraiser's best judgment but shouid not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just Appraisal reports made for lenders are technical documents specifically made to lender requirements. Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of Neither all nor any part oft the contents oft this report, especially any conclusions as to value ort thei identity oft the appraiser ort thei firm to which appraiser is connected, shall be disseminated tot the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author. The estimated market value, whichi is defined int the report, iss subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin oft the present owners or occupants oft the properties int the vicinity ofi the property  the value estimate and information given int this report.  thei information contained in these reports.  economically in the marketplace as oft the date of value.  appraised.  Acceptance of Appraisal Report authorized representatives.  The use oft this report is subject tot the requirements oft the Appraisal Institute relating to review byi its duly This appraisal is an estimate of value based on an analysis ofi information knowni toi the Appraiser(s): at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect ori incomplete information. Ifnewi information of significance comes tol light, orifa any conditions become apparent not previously known to the appraiser(s) which would affect the value oft the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the: stated client and not to subsequent parties oru users, and the liability is limited tot the amount of fee received byt the appraisers(s).  be necessary.  Appraisal Report A Avolem LLC  Page 38  Packet Pg. 520    ADDENDUM  Packet Pg. 521    Grant Deed of  Easement #1 - Public Utility Easement APN 223-81-012 and 223-081-013 Avolem, LLC to City of Gonzales LEGAL DESCRIPTION  Situate within the Rancho Rincon del lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion ofl Lots 1a and 2 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lots are: shown on the mapr recorded in Volume 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described as follows:  As strip of land 15 feet wide lying northwesterly of and contiguous to an existing 101 foot wide Public Utility Easement (P.U.E.) as shown on said map recorded in' Volume 23 of Cities and Towns at Page  19, of Official Records ofs said County.  Containing an area of 6,560 square feet, more or less. This legal description was prepared by: Lynn A. Kovach P.L.S.5321 Dated: July30,2024  Packet Pg. 522    Packet Pg. 523    Grant Deed of Easement #2 - Sanitary Sewer Easement APN 223-81-012 Avolem, LLC to City of Gonzales LEGAL DESCRIPTION  Situate within the Rancho Rincon del lal Punta del Monte, City of Gonzales, Monterey County,State of California, being a portion of LotlofT Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lots are: shown on the map recorded in' Volume 23 of Cities and Towns at Page  19, Official Records of said County, being particularly described: as follows:  Astrip ofl land 15 feet in width lying 7.5 feet on either side of thet following described centerline: COMMENCING at a point on an existing 10f foot wide Public Utility Easement, said point being the northeasterly terminus of said Public Utility Easement; thence crossing said Lot 1, North 42° 49'30"  West, 5.491 feet to the POINT OF BEGINNING 1) North 53° 39' 23" East, 28.98 feet; thence  2) North 41° 51' 22" West, 392.161 feet to a point ont the northerly line ofs said Lot 1a and the end of  said strip.  Containing an area of 6,317, more or less. This legal description was prepared by: Lynn A. Kovach P.L.S.5321 Dated: July30,2024  Packet Pg. 524    A  Packet Pg. 525    Grant Deed of  Easement #3-T Temporary Construction Easement APN 223-81-012 and 223-081-013 Avolem, LLC to City of Gonzales LEGAL DESCRIPTION  Situate within the Rancho Rincon de lal Punta del Monte, City of Gonzales, Monterey County, State of California, being a portion of Lots 1a and 2 of Tract No. 1455, Vista de Santal Lucia, Gonzales Agricultural Business Park, as said lots are: shown ont the map recorded in Volume 23 of Cities and Towns at Page 19, Official Records of said County, being particularly described as follows: BEGINNING ati the most northerly corner of said Lot 1; thence along the easterly line of said Lot1 1) South 42°4 49'30" East, 403.971 feet to a point on the northerly line of Katherine Street, as said 2) Southwesterly, along the arc of a non-tangential curve, the center of which bears North 43" 03' 50" West, 1,049.31 feet distant, through a central angle of 02-43'49",for: an arc distance of  street is shown on said Tract No. 1455; thence along said northerly line  50.001 feet; thence departing said northerly line 3) North 42°4 49'3 30" West, 25.02 feet; thence  4) Southwesterly along the arc of a non-tangential curve, the center of which bears North 40" 16' 22" West, 1024.31 feet distant, through a central angle of 06" 47'3 38", for an arc distance of  121.461 feet; thence  5) South 56° 31'15" West, 217.81 feet; thence 6) South 51°31'15"" West, 97.771 feet; thence 7) North 42° 48' 28" West, 16.461 feet; thence 8) North 51°18' 56" East, 14.18 feet; thence 9) North 55° 06' 20" East, 297.171 feet; thence 10) North 53° 39'23" East, 129.761 feet; thence  11) North 41°5 51' 22" West, 366.52 feet to aj point ont the northerly line of said! Lot 1; thence along  said northerly line  Packet Pg. 526    Grant Deed of  Easement #3 - Temporary Construction Easement APN 223-81-012 and 223-081-013 Avolem, LLCI to City of Gonzales  12) North. 52°2 27'0 02" East, 39.701 feet to the POINT OF BEGINNING.  Containing an area of0.55 acres, more or less. This legal description was prepared by: Lynn A. Kovach P.L.S.5 5321 Dated: July31,2024  Packet Pg. 527    Packet Pg. 528    PIINI REALTY  QUALIFICATIONS OF THE APPRAISER  John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of  Monterey, San Benito, Santa Cruz and Santa Clara Counties.  Academic Background Formal Education Appraisal Education  University of California, Los Angeles, BA degree-1974  Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements. Since 1983, John Piini has completed a number of appraisal courses and seminars and is current  with Appraisal Institute's continuing education requirement.  Professional Experience 1975-1983 1983-2008 2008-p present  Associate appraiser with. Joe Piini, MAI  Part owner of Piini Realty, ai family owned and operated real estate firm involved in appraising, brokerage, development and management. Upon the retirement of Jim Pini, John Piini became the sole owner of Piini Realty, which is a full service real estate firm providing appraisal, brokerage and property management services. In 2008, John Piini obtained his California Brokers license and his real estate activity focuses primarily on appraising and marketing agricultural properties.  Appraisal Assignments financial lending.  The majority of assignments pertain to the valuation of agricultural and acreage properties fora variety of purposes including estate planning, conservation easements, trust management and  Valuations of commercial, industrial special-use, residential and  development properties are also performed.  Professional affiliation and memberships  MAI-N Member of the Appraisal Institute - Certification Number 6708 California Certified General Real Estate Appraiser- OREA # AG005214 California Licensed Real Estate Broker - DRE # 00542238  Monterey County Board of Realtors  263 Lincoln Ave., Salinas, CA 93901 I TEL 831-422-5327 I FAX 831-422-8280 I PiiniRealty.com  Packet Pg. 529    QUALIFICATONS OF THE APPRAISER  Greg Piini, MAI has been engaged in the real estate business since 2000. Over this period of time, Greg  hasi focused on both real estate appraisal and property management.  Academic Background Formal Education  Hillsdale College, Hillsdale, Michigan. Bachelor of Arts in Finance, 2000  Appraisal Education  Appraisal Institute - 2001 through current. Beginning in 2001, Greg began taking appraisal classes with the Appraisal Institute and has continued taking classes and seminars over the years. Greg is current with the continuing education requirements of the BREA and the  Appraisal Institute. Professional Experience Piini Realty,Inc. 2000-2019  During the first nine years, Greg worked as an associate appraiser with John W. Piini, MAI. In 2009, Greg obtained his Certified General Real Estate Appraisal License, and in 2016, he completed the requirements to obtain the MAI designation oft the Appraisal Institute. In 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage,  2019-Current  development and management.  Appraisal Assignments  The majority of appraisal assignments involve acreage, agricultural, commercial and industrial properties locatedi in Monterey, Santa Cruz, San Benito and Santa Clara Counties. The appraisals are prepared for a variety of clients that range from attorneys, land trusts, government agencies, and property owners for a variety of purposes that include estate planning, conservation easements, trust management, andi financial lending.  Professional affiliation and memberships Appraisal Institute  California Certified General Real Estate Appraiser- BREA # AG044270 California Licensed Real Estate! Salesperson - BRE: # 01294279  Monterey County Board of Realtors  Packet Pg. 530    MANN PACKING/DEL MONTE Right-Of-Entry  Packet Pg. 531    RIGHT OF ENTRY AGREEMENT  This Right of Entry Agreement ("RIGHT OF ENTRY") is entered in this City of_ Gonzales ("CITY", "OWNER and CITY are collectively referred to as "Parties").  day of  2024, by and between Del Monte Mann Packing (the "OWNER") and the  RECITALS  A. WHEREAS, the OWNER is the owner in fee or a duly authorized agent (Rental or Property. Manager) of that certain realj property commonly referred to as. APN No. 020-021-050, onatemporary basis, toj perform the activity, more particularly described in Exhibit "A" (the MPROVEMENTS). attached hereto and incorporated: herein by reference. will allow CITY to enter the Property, on at temporary basis, for the purpose of performing the  Address: 491 Katherine Street, Gonzales, CA 93926, (the "Property").  B. WHEREAS, CITY desires to obtain the OWNER's permission to enter onto the Property,  WHEREAS, the Parties wish to enter into this RIGHT OF ENTRY whereby the OWNER  MPROVEMENTS.  NOW,THEREFORE, the OWNER and CITY do hereby agree as follows:  AGREEMENT  1.  RIGHT OF ENTRY. In consideration of the City's performance oft the  IMPROVEMENTS, the OWNER hereby grants to CITY andi its agents, employees, contractors and subcontractors the temporary: right to enter onto the Property for thej purpose of performing the IMPROVEMENTS and to take any other reasonable actions necessary for performance oft the  IMPROVEMENTS.  2. Term. The term of this RIGHT OF ENTRY shall commence when performance oft the IMPROVEMENTS begins, and shall automatically terminate upon completion of the IMPROVEMENTS. CITY shall provide OWNER at least twenty-four (24) hours' notice prior to performance of any IMPROVEMENTS. OWNER shall grant no rights inconsistent with the reasonable exercise by CITY of 3. Cost. The CITY shall bei responsible for all costs and expenses associated with performance of thel IMPROVEMENTS, except for those cost or expenses resulting from the negligence or performance of thel IMPROVEMENTS, and to the extent reasonably feasible, the CITY shall diligently safeguards fors safety and protection, including reasonable barriers or posting of danger signs and other warnings against hazards, promulgating safety regulations, and notifying owners and users of adjacent  its rights under this RIGHT OF ENTRY.  willful misconduct ofthe OWNER. See Exhibit A for other exceptions, ifa any.  4. 5. sites and utilities.  Performance ofthe IMPROVEMENTS. Time is of the essence with respect to the Safety. CITY shall erect and maintain on the Property, as necessary, reasonable  pursue completion of thel IMPROVEMENTS.  1  Packet Pg. 532    6.  Liens. CITY shall not permit tol be placed against thel Property, or any part thereof, any  design professionals', mechanics', materialmens', contractors', or subcontractors' liens with regard to performance of the IMPROVEMENTS. The CITY agrees to hold the OWNER harmless for any loss or expense, including reasonable attorneys' fees and costs, arising from any such liens which might be filed and against any and all costs, claims, damages or liabilities, including without limitation property damage and personal injury, arising out of or relating to the CITY's entry onto the Property and work performed under this RIGHT OF ENTRY, except where caused by thej joint or several negligence or willful misconduct of the OWNER or OWNER'sa agents, representatives, and/ori invitees.  against thel Property. 7.  Indemnification. The CITY shall indemnify, defend, and hold OWNER harmless from  8.  Compliance with LawsPermits. CITY shall, in performance of the IMPROVEMENTS  undertaken pursuant to this RIGHT OF ENTRY, comply and cause: its contractors, agents and employees to comply with all federal, state and1 local laws, statutes, orders, ordinances, rules, regulations, plans, policies and decrees. Without limiting the generality of the foregoing, CITY, at its sole cost and expense, shall obtain any and all permits and approvals which may be: required by any law, regulation or ordinance for the IMPROVEMENTS CITY desires to conduct or have conducted pursuant to this RIGHTO OF  ENTRY. 9.  Inspection. Prior to commencement oft the IMPROVEMENTS, the CITY and its  representatives, including employees, agents, contractors, subcontractors and independent contractors, may enter and inspect thel Property or any portion thereof or any IMPROVEMENTS thereon at any time and from time to time at: reasonable times as isi necessary for thej performance oft the IMPROVEMENTS, subject to the terms and conditions oft this RIGHT OF ENTRY, and provided that advance notice is given 10. No Real Property Interest. Iti is expressly understood that this RIGHT OF ENTRY does not in any way whatsoever grant or convey any permanent easement, lease, fee or other interest int the Property to CITY. This RIGHT OF ENTRY: is not exclusive and the OWNER specifically reserves the right to grant other rights ofentry within the vicinity ofthel Property to the extent such entry to not frustrate thej purpose oft this RIGHT OF ENTRY or otherwise limit CITY's ability to perform the  to OWNER.  IMPROVEMENTS.  11. No Waiver. Iti is understood and agreed by the CITY and OWNER that performance of the IMPROVEMENTS is a one-time circumstance; does not create an ongoing maintenance obligation or any other obligation upon the CITY; and does alter or waive the City Municipal Code or any other applicable state or local laws, rules or regulations with respect to ownership, maintenance, or repair oft the 12. Attorneys' Fees. In the event ofa dispute between thej parties with respect to thet terms or conditions of this RIGHT OF ENTRY, the prevailing party shall be entitled to collect from the other its reasonable attorneys' fees as established by the judge or arbitrator presiding over such dispute. 13. Revocable Licenses and Termination. This RIGHT OF ENTRY shall be revocable by the OWNER only if the CITY fails to comply with any provision herein. Revocation may not occur until OWNER has provided the CITY with written notice of the alleged breach and atl least ten (10) days to cure. During said 10-day period to cure, thej parties hereto shall meet and confer regarding the alleged breach and potential cure. Notice toi the CITY ofany alleged breach shall be sent to, Patrick Dobbins. Public Works Director. 1474 4th Street. Gonzales. CA. IfOWNER terminates this RIGHT OF ENTRY at any time after performance of thel IMPROVEMENTS has commenced, but prior to the  water distribution system.  2  Packet Pg. 533    completion of such IMPROVEMENTS, ori ifOWNER otherwise prohibits or impedes CITY right to enter thel Property hereunder, the CITY shall not bel liable for any actions, claims, suites, penalties, obligations, liabilities, or damages to thel Property, environmental claims ori injuries toj persons, which may be caused by CITY's performance ofthe IMPROVEMENTS pursuant to this RIGHT OF ENTRY or arising out of ori in connection with performance oft thel IMPROVEMENTS, whether such activities or performance thereofis by CITY or anyone directly ori indirectly employed or under contract with CITY, and whether such damage or claim shall accrue or be discovered' before or after the termination oft this RIGHT OF  ENTRY.  14. Restoration oft the Property. As part oft thel IMPROVEMENTS to the Property, CITY shall, at its own cost and expense, restore thel Property to a substantially similar condition in whichi it was priort to CITY's performance of1 thel IMPROVEMENTS; provided, however, that the CITY will not restore private IMPROVEMENTS including, beyond that portion of thei irrigation system intended for irrigating street trees. In the event that OWNER terminates this RIGHT OF ENTRY for any reason other than a CITY default and at any time after performance of the IMPROVEMENTS has commenced, but prior to the completion ofs such IMPROVEMENTS, the CITY shall not be obligated to restore the  Property as described herein.  15. Continuing Liability, Except as otherwise set forth int this RIGHT OF ENTRY, no termination of this RIGHT OF ENTRY shall release the parties from any liability or obligation hereunder resulting from any acts, omissions or events happening prior the termination of this RIGHT OF ENTRY 16. Counterparts. This RIGHT OF ENTRY: may be executed in one or more counterparts, each of which shall be deemed an original but all ofv which together shall constitute one and the same INV WITNESS WHEREOF, thel Parties hereto have executed this RIGHT OF ENTRY on the  and restoration oft thel Property.  instrument.  date first written above.  CITY OF GONZALES  OWNER (or Agent)  By:.  By:. (Name):  Carmen Gil, City Manager  3  Packet Pg. 534    EXHIBIT "A" DESCRIPTION OF WORK  The scope of work is as follows:  1. Access private property to construct 12-inch sewer lateral and interceptor manhole in 2. Work tol be done by licensed, insured contractors as part oft the City project toi install the Industrial Wastewater Conveyance Pipeline to the future Industrial Wastewater 3. Condition will be documented and preserved or repaired if damaged by contractor. 4. Some restoration of disturbed areas that may include: restoration ofhardscape, landscape, irrigation system, etc. as needed. This is not a guarantee ofi full satisfaction ofthe property owner: in all details oft the restoration, but in ai reasonable attempt to: restore the  accordance with the drawings attached herein.  Treatment Facility.  location to safe and functional use. 5. Tie-ins will be conducted on Sunday.  Not included:  6. Any work beyond the scope of work as described.  4  Packet Pg. 535    0 00  IS 3NI83AVX    Packet Pg. 536    Packet Pg. 537    ine Capitai GON2  AGENDA ITEM 14  Dityof Gongales  CITY. ATTORNEY STAFF REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024  Michael Rodriquez, City Attorney  THROUGH: Carmen Gil, City Manager  SUBJECT: Possible New Regulations Concerning Encampments on Public Property  RECOMMENDATION  Iti is recommended that the City Council provide Staff with guidance on the preparation of desired  regulations on encampments on public property in the City.  BACKGROUND  Issues concerning encampments occupied by unhoused persons impact nearly every community throughout the State. Locally, many cities in Monterey County are struggling with the appropriate means to address such issues. Due to the fact that the potential causes and impacts of being unhoused are varied and complicated by the wide range of affected people, including single adult men and women, families, single parents with children, youths, seniors and veterans, there is no easy, single Unfortunately, unhoused encampments are frequently established in public spaces and other places not meant for human habitation, posing a significant threat to the health and safety of their occupants who are already vulnerable to illness, crime, malnutrition, and harmful weather exposure (excessive heat, cold, rain and flooding). Moreover, encampments create risks to the health and safety of the larger community due to problems associated with large accumulations of rubbish, dilapidated vehicles, drug paraphernalia and criminal conduct in public places and in close proximity to public resources and bodies of water. Among other matters, the health and safety risks from unregulated encampments can include disease, bacterial and viral infections, water pollution, risk of drug The City of Gonzales has seen a slow but steady increase in the number of local unhoused individuals within and near the City's boundaries. Although the City has information and limited  approach to dealing with the encampment problem.  overdoses and pedestrian danger.  Packet Pg. 538    resources it can make available to the unhoused concerning support and assistance from County entities, the City has no specific programs, policies or regulations that pertain to encampments. As the number of unhoused individuals increases SO does the health and safety risk from such activity when tents or encampments are set up in public places. Additionally, because of the varied approaches to the encampment problem taken by local cities and the county, there is some risk that failing to take any regulatory action will leave the City susceptible to an influx of unhoused individuals from regions in which regulations or prohibitions are being strictly enforced. On April 1, 2019, thel Ninth Circuit Court of Appeals issued its decision in Martin V. Boise, Case No. 15- 35845 (9th Cir 2019), holding that enforcement against individuals camping and storing property inj public places violates the 8th Amendment's prohibition on cruel and unusual punishment when the unhoused have nowhere else to go. The general interpretation of Boise was that cities did not have the authority to clear an encampment unless they had a shelter bed or other space available for every However, the Supreme Court subsequently took up the issue in Grants Pass V. Johnson, in which a small city in Oregon's ban on camping and the use of camping equipment in public places throughout its jurisdiction had been struck down by lower courts as essentially making it a crime to bel homeless. On. June 28, 2024, the Supreme Court issued its final decision in the Grants Pass case, overturning Boise and stating that "the enforcement of generally applicable laws regulating camping on public property does not constitute cruel and unusual punishment prohibited by the gth Amendment." The Court rejected arguments that encampment bans target and criminalize the sheltering habits of the homeless since they apply to anyone attempting to use public property for housing purposes (vacationing backpackers, protesters) and said that the types of punishment Grants Pass imposed on homeless residents, limited fines and jail sentences, did not constitute cruel and unusual punishment. The takeaway from this decision was that cities can now enforce encampment Ina addition, on July 25, 2024, Governor Newsom issued Executive Order N-1-12 which ordered state agencies and departments to adopt policies that urgently address homeless encampments. Agencies subject to the Governor's authority were directed to remove homeless encampments and adopt specific related policies on topics such as providing notice to vacate property, providing outreach services in coordination with service providers, and removing and storing personal property collected on removal sites. The Order also encouraged local jurisdictions to adopt the State's guidelines and to use available resources tol humanely remove encampments from public spaces.  displaced encampment resident.  ordinances regardless oft the availability ofs shelter beds or sleeping spaces.  REVIEW AND ANALYIS  While the City is dedicated to continuing a compassion-led effort to work with individuals to move from street to self-sufficiency, it has become clear that measures are needed to address growing concerns over adverse impacts to the public health and welfare associated with unhoused encampments. At a minimum, proposed amendments to the City Code should protect the life, health, and safety of all people int the City by prohibiting overnight camping near sensitive receptors such as schools, city facilities, areas of commercial business, waterways, parks and environmentally sensitive areas. However, given the City's limited administrative and enforcement resources, it may be easier tol have a single set of regulations prohibiting encampments on public property anywhere in the City. This approach would alleviate the need to make in- field determinations as to whether a given encampment was or was not allowed on specific public property. Certain exceptions could be carved out for the limited camping needs of community organizations such as the Scouts. Keep in mind that the City should also be mindful of the guidance provided by the Governor that local regulations should contain elements concerning notice, removal and storage of personal belongings,  and referrals for assistance.  Packet Pg. 539    In summary, in response to Federal, State and Council direction and actions, Staff is providing several proposed ordinance options, attached hereto, for potential regulation of encampments in the City. The Council should review and provide direction. Staff will thereafter prepare an ordinance for  Council consideration at ai future date.  Explain Recommendation and How it Supports the Vision.  Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed: to working collaboratively to preserve andi retain its small town charm. Explain: Establishing regulations concerning unhoused encampments will directly impact the City's  ability to ensure that the City's vision is maintained.  Explain how the Recommendation Directly Implements the Mission  The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the  quality oflife ofour diverse community. X_Yes  No_ NA  Explain: See above.  City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment  opportunities in an evironmentally sustainable manner. Yes  No_XNA  Explain: See above.  Strong. fiscal policies allow us toj provide appropriate infrastructurefor  Public Safety Housing Recreation Environment Education Explain: N/A. ALTERNATIVES  Yes Yes Yes Yes Yes  No XNA No XNA No XNA No X_NA No XNA  Provide staff with guidance on the types of regulations the Council would like to establish to  deal with encampments on public property in the City.  Decide that regulatory action is not warranted or desired at the current time.  BUDGETI IMPACT  There is no direct financial impact associated with the modification to the Manager's Agreement. All  purchases will still need tol be made within approved budgets.  PUBLICNOTICE N/A. CONCLUSION  Packet Pg. 540    Itis recommended that City Council consider various options forj potential regulations on encampments  and provide Staff with direction. Attachments:  1. Proposed Ordinance Options  Packet Pg. 541    10/1/24,1 12:34PM  City ofk King, CA Camping.  Exhibit A  CityofKing, CA Tuesday, October 1, 2024  Title 7. Peace, Safety and Morals Chapter 7.51. NUISANCES  Article 4. Nuisance Related Activities  $7.51.409. Camping.  (a) Sleeping and Camping in Public and Certain Private Places Prohibited. It is unlawful for any person (1) In or on any public right-of-way, including any street, alley, roadway, accessway, median, (2) In or on any public park or trail or upon the grounds of any public facility or property, whether (3) Upon any unimproved private lot unless such use is with the permission of the owner and (4) Upon the premises of any private, commercial or industrial property unless such use is with the (b) Camp Defined. For purposes of this section, "camp" shall mean an outdoor place for eating,  tos sleep or camp:  irrigation canal, stream, river or embankment;  improved or unimproved;  permissible under the city's zoning ordinance; or  permission of the owner and permissible under the city's zoning ordinance.  cooking or sleeping, and includes, but is not limited to: (2) The use of sleeping bags, cots, beds, or hammocks;  (1) The use of camping facilities such as tents, tarpaulins, or temporary shelters; (3) The use of park benches, recreation equipment or similar structures; or  (4) The use of any parked vehicle, including an automobile, bus, truck, camper, trailer or  recreational vehicle.  (c) Exceptions. The following activities shall not be considered a violation of this section:  (1) Sleeping or recreational camping in any public park between the hours of seven a.m. and ten (2) Camping in public parks between the hours of ten p.m. and seven a.m. in areas set aside for For purposes of this section, the following shall not be considered recreational camping; a  p.m.; and overnight camping.  camp established with the intent to: (1) Lodge or reside at that location; (2) Remain in that location or park overnight; or (3) Remain for a period of more than one consecutive day.  pslesOCmpPuA69uG-67BSAT  Packet Pg. 542    10/1/24, 12:341 PM  City ofH King, CA Camping.  (d) Remedies for Violation. In addition to any other remedy or enforcement mechanism provided within this chapter or any other provision of the King City Municipal Code, any camp in violation of this section is declared to be a public nuisance, and the chief of police or designee, upon a determination that such camp constitutes an immediate threat to the health, safety or welfare of persons in the city, including persons using the camp, is authorized to remove the camp. If persons are occupying the camp at the time, then before removing the camp, the chief of police or designee shall warn the person or persons occupying the camp that they are in violation of this section and  shall give them the opportunity to remove the camp.  (Ord.73952,2017)  psleosOcompInuxA8PU-H57SA  Packet Pg. 543    Exhibit B  ORDINANCE NO. 2035  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 19.50 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED "CAMPING ON PUBLIC PROPERTY" REGULATING CAMPING ON PUBLIC PROPERTY WITHIN THE  CITY OF SAN RAFAEL SECTION 1. FINDINGS  WHEREAS, the purpose of this Ordinance is to enact regulations to address camping in or on public property in the City of San Rafael. The City Council has authority to adopt this WHEREAS, the City Council recognizes that camping in the City by persons with no alternative shelter, and the activities often attendant with camping, have created adverse public health, safety, and welfare conditions for the public, including those who live in the WHEREAS, the City, along with the County of Marin and community partners, has been and is undertaking extensive actions to assist unsheltered persons in the City and region to find WHEREAS, in the case of Martin V. City of Boise 920 F.3d 584 (9th Cir. 2019), the federal Court of Appeals for the Ninth Circuit held that the City of Boise's criminal enforcement of its ordinance banning camping on all public property was unconstitutional. when applied to WHEREAS, while the Martin V. City of Boise decision mandates that a city without sufficient alternative shelter may not criminalize the act of sleeping on public property, it does not require a city to allow camping on all public property, and does not prevent a city from prohibiting camping on specified public properties, or enacting other time, place, and manner WHEREAS, the City Council recognizes and finds that there are public health and safety hazards and public nuisance activities and conditions frequently associated with camping on public property, and that there are certain public properties where the existence of campsites isi incompatible with the necessary use of the property by the public, or where camping presents unacceptable hazards and/or costs to the City's operations and to the public; and WHEREAS, some unsheltered persons in the City live in temporary shelters on public property, such as tents and tarps, and accumulate, store, or leave behind personal property, WHEREAS, camping on public property can lead to damage to public property, or hindrance of the operation or protection of public infrastructure and utilities, creating a potential health WHEREAS, camping on public property can have a deleterious impact on the public use of public property, businesses, private real property, and economic development within the City;  Ordinance pursuant to the California Constitution Article XI, section 7; and  City's encampments; and  shelter and needed services; and  individuals who had no alternative shelter available to them; and  conditions on camping; and  garbage, waste, and biohazards; and  and safety hazard; and  and  Packet Pg. 544    WHEREAS, in July 2023, the City Council adopted Ordinance No. 2030, setting new spacing and density rules and other restrictions for camping on public property by persons with no WHEREAS, in the case of Boyd et al. V. Cityo of San Rafael, N.D. Cal., Case No. 23-cV-04085- EMC ("Boyd"), the Court issued a Preliminary Injunction Order under which the City was permitted to enforce Ordinance No. 2030 under Court-modified rules which were operationally impractical to implement, particularly as they involved procedures to administer WHEREAS, by this Ordinance, the City Council seeks to modify the regulations adopted through Ordinance No. 2030 by allowing campsites of up to 200 square feet for one person: and 400 square feet for up to 4 persons camping together; eliminating the 200-foot spacing requirement; requiring a 10-foot safety clearance around each campsite and 10-foot setbacks from other campsites, public utility infrastructure, and private real property; specifying enforcement notice and due process requirements; and making other language changes set WHEREAS, by amending the City's camping regulations, the City's goal is to effectively regulate and enforce camping laws for the health and safety of all of the public, including WHEREAS, for the reasons set forth above, this Ordinance is declared by the City Council to be necessary to protect public health, safety, and welfare; preserve public property for the enjoyment and safety of all members of the public; enhance and preserve the orderly administration and management of public property; and preserve, protect, and prevent damage to public resources, and the recitals above taken together constitute the City NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN SECTION 2. AMENDMENTS TO SAN RAFAEL MUNICIPAL CODE CHAPTER 19.50 Chapter 19.50 of the San Rafael Municipal Code, entitled "Camping on Public Property", is  alternative shelter available; and  the Ordinance's spacing and density requirements; and  forth in the Ordinance; and  residents who are experiencing homelessness; and  Council's statement of the reasons for adopting this Ordinance.  AS FOLLOWS:  hereby amended in its entirety to read as follows:  Chapter 19.50 - CAMPING ON PUBLIC PROPERTY  19.50.010. - Purpose.  The purposes of this chapter include but are not limited to: protecting public health, safety, and welfare; preserving public property for the enjoyment and safety of all members of the public; enhancing and preserving the orderly administration and management of public property; and preserving, protecting, and preventing damage to public resources. This chapter prohibits conduct that unreasonably interferes with the administration and lawful uses of public property by establishing reasonable time, place,  and manner conditions related to camping on public property.  19.50.020 - Definitions.  Packet Pg. 545    As used in this chapter, the following terms shall have the following meaning:  A. "Camp" or "Camping" means use of space on public property for living accommodation purposes such as sleeping activities, or making preparations to sleep (including the laying down of bedding for the purpose of sleeping), or storing personal belongings, or using any tents or shelter or other structure or vehicle for sleeping. The above-listed activities constitute camping when it reasonably appears, in light of all the circumstances, that the participants, in conducting these activities, are using the area as a living accommodation regardless of the nature B. "Camp facility" means a tent, cot, bed, hammock, vehicle, or other temporary C. "Camp paraphernalia" means implements and equipment used for camping, including camp facilities, tarpaulins, mattresses, sleeping bags, bedrolls, D. "Campsite" means the primary physical area ofoccupation of one person camping or up to four persons camping together, inclusive of camp facilities, camp E." "Open space property" means any area described in San Rafael Municipal Code Section 19.10.020. The city will maintain on its public website and in hard copy at the City Clerk's office a map of all open space property meeting this definition. F. Playground" means ani improved outdoor area designed, equipped, and set aside for children's play in a park or school that is not intended for use as an athletic playing field or athletic court, and also includes any playground equipment, fall zones, surface materials, access ramps, and all areas within and including any G. "Public facility" means any building or structure on public property, whether secured, unsecured, locked, unlocked; open, or enclosed, as well as any area of H. "Public property" means any real property within the jurisdiction of the City of San Rafael, which is owned, managed, or controlled by the City of San Rafael. "Public right-of-way" means any area described in San Rafael Municipal Code J. "Public utility infrastructure" means public bathrooms or infrastructure and equipment used to provide public utility services, including electricity, gas, water, K. "School" means any public or private institution of educational learning up to and  of fany other activities in which they may also be engaging.  physical shelter.  blankets, sheets, pillows, and cookware or cooking equipment.  paraphernalia, and personal property.  designated enclosure and barriers.  public property enclosed by a locked fence.  Section 11.04.020(K).  stormwater, telecommunications, and sanitation services.  including grade 12.  Packet Pg. 546    L. "Sidewalk" means any area in the city provided for the use of pedestrians, including planting areas, driveway approaches, and parking strips, between the public vehicular roadway and the edge of public right-of-way bordering, fronting, M. "Store" means to put aside or accumulate for use when needed, to put for N. "Vehicle" means any wheeled conveyance, whether motor-powered or self- propelled, and includes any trailer in tow of any size, kind, or description.  ora adjacent to private real property.  safekeeping, or to place or leave in a location.  19.50.030-P Prohibited Camping on Certain Public Property.  A. Prohibited Camping  1. Open space property. No person or persons shall camp in or on any open 2. Parking garages. No person or persons shall camp in or on the premises of any parking garage, or portion thereof, owned or operated by the city. 3. Public facilities. No person or persons shall camp in or on any public facility, or portion thereof, or in a manner that obstructs, blocks, or otherwise interferes with access to a public facility or private real property. 4. Playgrounds. No person or persons shall camp within 100 feet of any 5. Schools. No person or persons shall camp within 250 feet of the property 6. Public right-of-way and sidewalks. No person or persons shall camp in or on any public right-of-way or sidewalk, or portion thereof, or in a manner that obstructs, blocks, or otherwise interferes with use of or access to a public  space property, or portion thereof.  playground.  boundary of any school.  right-of-way or sidewalk.  B. The city council or city manager may, by resolution or administrative order, absolutely prohibit camping, or adopt time, place, or manner conditions on camping, at any time in oron one or more public properties, or portion thereof, where such camping is determined to be at threat to the public health, safety, or C.T The city shall maintain on its public website and in hard copy at the city clerk's office a current citywide map of all public property parcels prohibited to camping by subsections (A)(1), (A)(2), (A)(4), (A)(5), and (B) of this section 19.50.030.  welfare.  19.50.040 - Prohibited Camping on Other Public Property; Exception.  A. Noperson or persons shall camp in or on public property not listed under Section  Packet Pg. 547    19.50.030, or portion thereof, except as set forth below.  B. Exception. Nothing in this section shall be deemed to prohibit camping on public property that is not listed under Section 19.50.030 when there is no alternative C. When the exception set forth in subsection 19.50.040(B) applies, the following  shelter available to the person camping. time, place, and manner conditions shall apply: 1. Campsite size and occupancy.  a. No campsite occupied by one person shall exceed an area of 200 sq. ft., inclusive of camp facilities, camp paraphernalia, and personal property. b. No campsite occupied by more than one person shall i) exceed an occupancy of four persons or ii) exceed an area of 400 sq. ft., inclusive of camp facilities, camp paraphernalia, and personal property. All camp facilities, camp paraphernalia, and other personal property shall be stored and kept within the maximum permitted campsite area. d. Items stored or discarded outside of the maximum permitted campsite area shall be presumed to be unattènded personal property or trash or debris and may be stored or discarded according to city policy. e. No person shall establish or occupy more than one campsite.  2. Clearance and setbacks.  a. Aminimum clearance of 101 feet around all sides of any campsite allowed under this section shall be maintained free. and clear oft trash, debris, and personal property, including but not limited to camp facilities and camp paraphernalia. Items stored or discarded within the 10-foot clearance area shall be presumed to be unattended personal property or trash or debris and may be stored or discarded according to city policy. b. No campsite may be established or occupied within 10 feet of any other campsite allowed by this section, public utility infrastructure, or private  real property, including a fence of such property.  3. Fabric tents, fabric tarps, or other similar non-permanent, removable items may be used for temporary shelter within a campsite, provided they are not affixed or tied to any public property, private real property, vegetation, or infrastructure, except for the use of removable stakes to secure the item to 4. Removable plastic pallets or sandbags may be used to temporarily raise a tent or other camp facility off of the ground, provided that such items are not affixed or tied to any public property, private real property, vegetation, or  unimproved ground on public property.  infrastructure.  Packet Pg. 548    19.50.050- - Violations; Enforcement.  A. Enforcement of this chapter shall be pursuant to chapters 1.42, 1.44, and 1.46; provided, however, that no person shall be charged with a criminal violation B. The city manager or their designee shall be responsible for enforcement oft this C.F Fora at first violation of this chapter, the city manager or their designee shall issue aw written warning notice to the person violating the chapter, informing that person of the nature of the violation, the actions that are required to be taken to comply with this chapter, the city's guidelines for removal and storage of unattended personal property, the timeframe to come into compliance, and the D.F For violation of section 19.50.0400C)00-2). related to the size, occupancy, and clearance or setbacks of a campsite, the person camping shall be given 3 business days to come into compliance with this chapter. The city manager or their designee shall provide upon request a physical demarcation of the allowed boundary to assist the person camping to comply with this chapter.  unless their unlawful conduct is knowing or willful.  chapter.  potential penalties that will apply for future violations.  19.50.060 - Conflict with Other Regulations. standards and regulations of this chapter shall prevail.  To the extent that there. is any conflict with any other provisions of this code, the  SECTION 3. COMPLIANCE WITH CEQA  This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the city. The city council hereby finds that under section 15061(b)(3) of the State CEQA Guidelines, this Ordinance is exempt from the requirements of CEQA because it can be seen with certainty that the provisions contained herein wouldnot have the potential for causing a significant effect on the environment. It also finds the Ordinance is exempt from the requirements of CEQA pursuant to CEQA Guidelines sections 15307 and 15308 as an action by a regulatory agency taken to protect the environment and  natural resources. SECTION 4. SEVERABILITY  Every section, paragraph, clause, and phrase of this Ordinance is hereby declared to be severable. Iffor any reason, any section, paragraph, clause, or phrase is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases, and the remaining portions or this Ordinance shall continue in full force and effect unless amended or modified  by the city.  SECTION 5. EFFECTIVE DATE AND PUBLICATION  This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall  Packet Pg. 549    be int full force and effect 30 days afteri its adoption. Ifpublished in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 15th day of April 2024, and was passed and adopted at a regular meeting of the San Rafael City Council on the 6th day of May 2024 by the following  Councimembers voting for and against the Ordinance.  vote, to wit: AYES: NOES:  COUNCILMEMBERS: COUNCILMEMBERS:  ABSENT: COUNCILMEMBERS:  KATE COLIN, Mayor  ATTEST:  LINDSAY LARA, City Clerk  Packet Pg. 550    SUMMARY OF ORDINANCE NO. 2035  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 19.50 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED CAMPING ON PUBLIC PROPERTY" This Summary concerns a proposed ordinance of the City of San Rafael, designated as Ordinance No. 2035, which will amend Chapter 19.50 to the San Rafael Municipal Code. Ordinance No. 2035 is scheduled for adoption by the San Rafael City Council at its regular meeting of May 6, 2024. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section  36933(c)(1).  SUMMARY OF AMENDMENT TO MUNICIPAL CODE  Ordinance No. 2035 will amend regulations governing camping on public property in the City of San Rafael. Modified spacing and density rules will apply to camping activities by persons with no alternative shelter. The amended regulations will permit campsites of up to 200 sq. ft. for one person and 400 sq. ft. for up to 4 persons camping together. No camping will be allowed within 250 ft. of schools. The ordinance will require a 10-ft. clearance area around each campsite and 10-ft. setbacks from other campsites, public utility infrastructure, and private properties. The ordinance includes a new enforcement section specifying notice and due process requirements. Other existing rules will stay in effect. With these changes, the City's goal is to effectively regulate and enforce camping laws for the health, safety, and welfare of the public. Copies of Ordinance No. 2035 are available for public review on the City's website: tips/www.ctyossanratael.org. You may also contact the City Clerk at (415)  485-3066 for information. LINDSAY LARA San Rafael City Clerk Dated: 04/27/24  Packet Pg. 551    Exhibit C ORDINANCE NO. 2024-  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING TITLE 10 OF THE NATIONAL CITY MUNICIPAL CODE BY ADDING CHAPTER 10.56, ALL PERTAINING TO REGULATING ENCAMPMENTS ON PUBLIC PROPERTY TO ESTABLSHASTANDARD FORTHE PROTECTION OF THE LIFE, HEALTH, AND SAFETYOF ALL PEOPLE, AND SENSITIVE PUBLIC LANDS WITHIN THE CITY OF NATIONAL CITY WHEREAS, the City of National City (the "City")may adopt ordinances in accordance with its police powers to ensure the public health, welfare, and safety of its residents, including the police powers vested in the City pursuant to article XI, section 7, of the California Constitution;  and  WHEREAS, pursuant to the terms and provision of the Government Code of the State of California, proceedings were duly initiated fort the amendment oft the National City Municipal Code;  and  WHEREAS, City staff and the City Attorney's Office have analyzed the National City WHEREAS, the City of National City desires to keep all public property clean and readily WHEREAS, the use of public property for camping and/or for the storage of personal belongings interferes with the rights of others to use and enjoy these public spaces and can  Municipal Code and are recommending updates where appropriate; and accessible to all residents, businesses, and the public at large; and  constitute a public health and safety hazard; and  WHEREAS, the City of National City wants to maintain all public areas within the City in a clean, sanitary, safe and accessible condition to ensure public property public property is used  fori its intended purposes.  NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, Section 1. The City Council oft the City of National City hereby amends Title 10 of the  CALIFORNIA, HEREBY ORDAINS AS FOLLOWS:  National City Municipal Code by adding Chapter 10.56 to read as follows:  CHAPTER 10.56 Section(s):  REGULATIONS FOR ENCAMPMENTS ON PUBLIC PROPERTY  10.56.010 Purpose - Adopted. 10.56.020 Definitions - Adopted.  10.56.030 Protection of Waterways - Adopted.  10.56.040 Unauthorized Encampments on Public Property - Adopted.  Packet Pg. 552    10.56.050 Abatement of Encampments - Adopted. 10.56.060 Enforcement - Adopted. 10.56.010 Purpose.  Public property throughout the City should be readily accessible and available to all people and businesses at large. The use of public property for camping purposes interferes with the rights of others to use and enjoy the publicproperty: as ity was intended. Such activitypresents a public health and safety hazard which adversely impacts all people and sensitive public land. The purpose of this chapter is to establish a standard for the protection of the life, health, and safety of all people, which includes residents of such unauthorized encampments, and the protection of sensitive public lands to avoid the destruction of these assets. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary use of public property. This chapter shall be interpreted in a manner that is  consistent with applicable state and federal law.  10.56.020 Definitions.  Whenever in this chapter the following terms are used, they shall be deemed and construed to have the meaning ascribed to such respective A. "Abatement" means the process of documenting and collecting valuable items for temporary storage, removing and disposing of, recycling, or reusing of waste at an encampment as authorized by the National City Administrative Policy Manual Chapter 10.04. B. "Camp" or "Camping" means to place, pitch, erect, or occupy an encampment, or to use camp paraphernalia or both, for the purpose of, ori in a way that facilitates outdoor sheltering for living, accommodation or habitation purposes or for remaining outdoors overnight. C." "Camp Paraphernalia includes, but is not limited to, tarps, cots, beds, sleeping bags, hammocks, bedrolls, camp stoves, cooking equipment, buckets, and similar equipment or items that are accessory to encampments, mattresses, couches, dressers, or other furniture. D. "Encampment" means one or more temporary, makeshift, or hand-built shelters, including tents or huts, used for one or more persons or their belongings and without permitted authorization by property owner. E. "Official" or' "Officer" means any official or officer who is charged by the F. "Park" means the same as defined in Section 18.50.010 of Title 18. G. "Public Property" means all property that is owned by the city including, but not limited to, streets, alleys, parking lots, sidewalks, parks, waterways, natural areas abutting waterways, and improved or  terms in this section.  Municipal Code with code enforcement authority.  unimproved land.  Packet Pg. 553    H. "School" means institutions that offer instruction on those courses of study required by the California Education Code or that is maintained pursuant to standards set by the State Board of Education. This does not include a vocational or professional institution of higher education, including a community orj junior college, college, or university. "Shelter" means any city-funded shelter or an area designated by the City Manager within the City where unsheltered individuals or families J. "Sidewalk" means the same as defined in Section 18.50.010 of Title 18. K. "Street" means the same as defined in Section 18.50.010 of Title 18. "Waste" means materials of any nature that constitute rubbish in Section 18.50.010. Waste also means abandoned personal property that is left unattended in or upon public property. Waste does not mean recyclable material properly contained and disposed of in a timely M. "Waterway" means all portions of Sweetwater River and Paradise Creek and drainage culverts found within the boundaries of the City of  can access beds or other services.  fashion. National City.  10.56.030 Protection of Waterway  A. Itis is unlawful for any person to cause damage to a waterway. B. Iti is unlawful for any individual to do any of the following:  a. Erect an encampment or any other structure along the bank of a waterway, in any natural area abutting a waterway, or drive or affix an object into any tree or other natural area vegetation for the purpose of erecting an encampment or any other structure; b. Reconfigure the natural landscape in the waters of or along the banks of a waterway for the purpose of erecting an C. Drive, park, or bring any vehicle along the banks of a waterway, d. Dig in the banks of a waterway for the purpose of erecting an e. Accumulate or fail to properly dispose of waste including, but not limited to, hazardous waste, human waste, animal waste, garbage, debris, rubbish, and used needles, in the waters of or  encampment or any other structure; unless otherwise permitted; encampment or any other structure;  along the banks of a waterway.  C. Nothing in Section 10.56.030 is intended to prohibit the activities of an owner of private property or any other lawful user of private property sO long as they are normally associated with and incidental to the lawful and authorized use of private property; and nothing is intended to prohibit the activities of any other lawful user if such activities are expressly authorized byt the City Manager or by any law, regulation, or  ordinances.  Packet Pg. 554    10.56.040 Unauthorized Encampments on Public Property.  A. Itis unlawful and a public nuisance for any individual to do thei following in an encampment located in or upon any public property unless a. Camp, occupy camping facilities, or use camp paraphernalia; b. Accumulate or fail to properly dispose of waste including, but not limited to, hazardous waste, human waste, animal waste, garbage, debris, rubbish, and used needles.  specifically authorized by the City Manager:  or  B. Section 10.56.040(A) is applicable at all times, int the following  locations:  a. within two blocks of a schools provided that signs are posted prohibiting encampments that are clearly visible to pedestrians; b. in àny waterway or natural area abutting a waterway; and C. within any transit hub, on any trolley platform, or along any trolley tracks provided that signs are posted prohibiting encampments that are clearly visible to pedestrians.  C. Nothing in Section 10.56.040 is intended to prohibit the activities of an owner of private property or any other lawful user of private property sO long as they are normally associated with and incidental to the lawful and authorized use of private property; and nothing is intended to prohibit the activities of any other lawful user if such activities are expressly authorized by the City Manager or by any law, regulation, or  ordinances.  10.56.050 Abatement of Encampments.  Any activity in violation of this chapter is declared to be a public nuisance, and the City is authorized to abate the nuisance and remove the encampment as authorized by the National City Administrative Policy  Manual Chapter 10.04.  10.56.060 Enforcement.  A. This chapter may be enforced by any official or officer who is charged by thel Municipal Code with code enforcement authority. Violation of any provision of this chapter shall be punishable as a misdemeanor subject to fines and custody provisions as prescribed in Chapter 1.20 of the National City Municipal Code. This chapter may also be enforced via administrative or civil actions as authorized by the Municipal Code. Violations of this chapter are punishable at all times.  Section 2: This Ordinance shall take effect and be in force thirty (30) days from the date ofi its passage, and before the expiration of fifteen (15)c days afteri its passage, it or a summary ofit, shall be published once, with the names of the members of the City Council voting for and against the same int the Star News, a newspaper of general circulation published in the County of  San Diego, California.  Packet Pg. 555    Section 3: The City Clerk shall certify to the adoption of this Ordinance and shall INTRODUCED at a regular meeting of the City Council of the City of National City, held  publish in accordance with the law. on this 3rd day of September, 2024.  PASSED and ADOPTED this  day of  2024.  Ron Morrison, Mayor  ATTEST:  Shelley Chapel, MMC, City Clerk APPROVED AS TO FORM:  Barry J. Schultz, City Attorney  Packet Pg. 556    Packet Pg. 557    Exhibit D  BILL NO. ORDINANCE NO.  AN ORDINANCE OF THE CITY OF FRESNO, CALIFORNIA, AMENDING SECTIONS 10-1703(a), 10-1707, 10-2101, 10- 2204 and 10-2205 OF THE FRESNO MUNICIPAL CODE, RELATING TO THE PROHIBITION ENCAMPMENTS IN  PUBLIC PLACES  THE COUNCIL OF THE CITY OF FRESNO DOES ORDAIN AS FOLLOWS: SECTION 1. Section 10-1703(a) of the Fresno Municipal Code is amended to read as  follows:  (a) A violation of this article is a misdemeanor, and upon conviction, confinement of up to of up to [one yearl six-months in jail and/or fines up to $1,000 per violation, or as set forth in the Master Fee Schedule, plus payment for the actual costs of transporting and storing property of the violator. In addition to the remedies set forth in Penal Code section 370, et seq., the City Attomey may institute civil actions to abate a public nuisance  under this article.  SECTION 2. Section 10-1707 of the Fresno Municipal Code shall be removed in its  entirety:  SECHION10-4707-RESTRICTIONONENENFORCEMENT-Anindividual-shal-not pe-cited-under-this-ordinance-unless-tis-confimmed-a-bed-S-avalable-atat-a-shelter-or herlacily,and-indnere-are-ounaw-estncionsinatmayolnerwise-make-suChDed SECTION 3. Section 10-2101 of the Fresno Municipal Code is amended to read as  unavalable-to-te-that-person.  follows:  1of10  Date Adopted: Date Approved Effective Date:  City Attorney Approval: B  Ordinance No.  Packet Pg. 558    ARTICLE21 PUBLIC WELFARE  SECTION 10-2101. [SITTING, LYING, SLEEPING OR CAMPING ONA A PUBLIC PLACE INCLUDING BUT NOT LIMITED TO SIDEWALKS, STREETS, ALLEYS, SENSITIVE AREAS OR WITHIN DOORWAYS PROHIBITED) SHTTING-LMING,OR SLEEPING OR STORING, USING-MANTANING OR PLAGING PERSONAL  PROPERTYINTHEPUBHICRIGHT-OF-WAN  (a) [No person may sit, lie, sleep or camp on a public place at any time. "Camp" shall be defined to include, but not be limited to; sitting, lying, storing or placing a tent on a public place. "Public Place" shall be defined toinclude, but not be limited to, sidewalks, streets, alleyways, or other public space.] maa--wwe  wway:  (1) WysHi-vg.ershepn.wa, mainlsiaing-orplacingpengpamaipepwynamamer-hatmpades passage,deposdedbyemasanewnosAdol409, Pu-L,N0-101,36,104Swa,asamendedtomimeo  time;  (2) -by-siting.-lying- era..en. maintaining, opispawatppwpewaOaday  opesaiomioralbabiedhneyorhadinydack,  (3) Wy-si-M-ersipw.erbyg.wa. maintaining, orplacing personal-popery-wihn-s-eet-dl-any  peatomsorualizauebulamgemtanceorent  2of10  Packet Pg. 559    (4) Wy-ai-Mw.ershpw-erbysu.uah, mahmianng-orplacingpesonsepwpewahn2leiofany-ie ydrant-freplug,orolnerlredepartimntcomnection:  (5) ysrg-w.erdipe-srbysg.uan, mainlaining-orplacing-persona-propery-WAMAtne-public-ghto way-ina-manner-that-obsiruclsorunreasonaby-mteerferes-With-tne use-elthe-rght-or-way-torany-actviy-OF-WAIGA-Ae-GIty-nas-ssued  a-permit.  (b) [No person may sit, lie, sleep or camp in any pedestrian or vehicular entrance to public or private property abutting a public sidewalk.] No-person-shal-obsinetanyponono-anysroetoralnerpubiC-gnEOH way-to-use-by-molorvences,oranypOROROHaDKe-ane,blepatn,o: other-publie-rgh-olway-open-t-use-use-by-bisydles.by-siling.-lying-or sleeping-orby-slonng.mananng-drpsemppeng-persona-propery, anywherewihntnestnedireetbkeane,oromerpuDiCgAtOrway,  as-specified.  (c) [No person may sit, lie, sleep or camp on a property designated as a sensitive use. For a property to be designated as a "sensitive use."t the property must be a School, Childcare Facilities, Public Park, Public Library, City Facility, Governmental Facility located in the City of Fresno, Warming and Cooling Centers, and City-Permitted Shelters for the Unhoused.] Exceptas-limitedbySupsegion-0,-me-persenshals  3of10  Packet Pg. 560    -adwRasawwww wwww.-w wahin-medisiancesialedeniepasayyeum w-.rwweA-----w a-.wVeae aSehoolChiaeaneFaai-PaicPas,Palaming amdColimgCemtes,amasch-Pemi.asSaiaersfor-neUniousad: P-wwRsawwNA popeny,lnoruponanysinekassikoroherpabie-gntoway wilhn-nedislanoesiaedontepassiayp/pioamasmm ois00ieepofanovepasamapa.ieyade. n-ap-era-adys Counci detemines-in-tme-desguing-saa-n, w--wwwwwwweraw limiasion-byfimaimg.naitesswphgerhayng-ang-ilnsaedprowiny lelmedesgpaiedasaisumaagrncompaibewisale  passage.  (3) sil/le,slep,orsiore,use,manlan,oorplacepersona. popetyainoruponanysiayinekamsikeralerpwbe-gntoway wiln-medislancesiatesoanieyppioamasmm -asw*yMr- sepag-orsale-paningpohomas-peronseneSa54  4of10  Packet Pg. 561    homeless-serices-magationcenter:  (4) Sit,le,sleep,ep,Orstore,use,maintan,erpaace-persona. preperty-norupenanystreet,sdewsdewalk,orolnerpubHCgnEO-way hathas-beenposiedwithsgnageprohbltingsling-ying-sleeping: rstoring-using.mainaining-orpacingpersona-propery-Inorder o-designateaseasectonorsireetysidewalk,eroinerpuDHG-Fgnt-Ol-way as.prohibiledunderiNissubdwBon,tne.CHy/COuReHshaldeterine, n-a-desigmating-resolulon-and-Das8d-on-specie-documeniaton, thatthe-circumstancesofcontnuedsling-sleepng--lyingerstorng persona-properly-orolnenwiseobstrnucingtnepuDic-gntO-wayat he-location-posesaparicuarandongoingineatoo-pubiç-neal-or  safety.  (d) [In addition to any other remedy provided by law, any person found in violation of this section may be immediately removed from the premises.] Ne-persen-shal-b-OundO-De-Avoatonorany-prohbHen-set lorlh-nSubsecton:,umesancun/eCHyCounancl-asiakenacton byresolulon-to-desgnale-specledanas-oremorcemenragalns-siting. ying-sleeping-ersioang.using.mananng,orpisongpeng.personat-propery, or-olherwise-obsinucle-gM.Pway--e-CHy-nas-posied ignageatthedesigntedaresorarassetionthintneresolion,Winsuch bonge-nduig-esense-wP-PEan-ne resolutionandgMngoliceolmedaleaePwAGARPlIng-ying-sieepang.  5of10  Packet Pg. 562    o-sioinm-uing-maintaanpaa-pepeorahamee dhainvdngphepaierpdhaws--sPalasadrdye anepauashomeesdasca.wattpptrasiliedatyunsaer  areas:  (e) ermwmass.RareASe --------- wiin-sg.saida-sahoawterpwpcm-camet-A-valstn-de-n  massasgmsySasia29palsos  ([(e)] [A violation of this article is a misdemeanor, and upon conviction punishable by a fine of not exceeding one thousand dollars ($1.000.00)orbyi imprisonment in the Fresno County, Jail forai period ofr not- more than one year or by both such fine and imprisonment. In addition to the remedies set forth in Penal Code section 370. et seq., the City Attorney may institute civil actions to abate a public nuisance under this article.  Any individual charged with violation of this article, in lieu of being taken to jail may, at the election of the citing police officer and with the consent of the individual, be taken to a facility providing social services related to mental health, housing, and/or substance abuse treatment.  As an alternative to a fine or jail sentence, the City would encourage the Court to grant diversion or probation with a condition the offender complete a rehabilitation posam)mowngepenoRMIDIFeS ---cy---- willully-refuses-te-comply-aiter: being-eguestediodosobyanautionzad  6of10  Packet Pg. 563    Ciy-employee-shal-be-subpctio-he-penales-pusuant-o-Chapler-4, Aride-3-0Flhis-Code-Al-olier-voalaions-shai-be-emtorceable-only-as nifactionspursuantt-Secion1-308,eiseg-Appeald'anadministralive  ation-maybemadepursuantiosecions--308etseg.  [(f)l The City shall adhere to State law as it pertains to mobile and  sidewalk vendors.  SECTION 4. Section 10-2204 of the Fresno Municipal Code is amended to read as  follows:  SECTION 10-2204. NOTICE.  (a) Pre-Removal Notice. Pre-removal notice shall be deemed provided ifav written notice is provided toi thel Person who is Storing or claims ownership of the Personal Property or is posted conspicuously on or near the Personal Property and the actual removal commences no more than [24172 hours after the pre-removal notice is posted. The written notice shall  contain the following:  (1) A general description of the Personal Property to be  removed.  (2) The location from which the Personal Property will be  removed.  (3) The date and time the notice was posted.  (4) A statement that the Personal Property has be stored  in violation of Section 10-2203.  7of10  Packet Pg. 564    (5) A statement that the Personal Property may be impounded if not removed from Public Areas within 24 hours.  (6) A statement that moving Personal Property to another location in a Public Area shall not be considered removalofPersonal  Property from a Public. Area.  (7) The address where the removed Public Property will be located, including a telephone number and thei internet website of the City through which a Person may receive information as to impounded Personal Property as well as information as to voluntary  storage location(s).  (8) Astatement that impounded Personal Property may be discarded if not claimed within [60190 days after impoundment. (b) Post-Removal Notice. Upon removal of Stored Personal Property, written notice shall be conspicuously posted in the area from which the Personal Property was removed. The written notice shall contain  the following:  (1) A general description of the Personal Property  removed.  (2) The date and approximate time the Personal Property  was removed.  (3) A statement that the Personal Property has been  stored in violation of Section 10-2203.  8of10  Packet Pg. 565    (4) The address where the removed Personal Property will be located including a telephone number and internet website of the City through which a Person may receive information as to impound  Personal Property.  (5) Astatement that impounded Personal Property may be discarded if not claimed within [60190 days after impoundment. (c) Personal Property shall be defined as, set forth in Section  10-2202(1) of the Fresno Municipal Code.  SECTION 5. Section 10-2205 of the Fresno Municipal Code is amended to read as  follows:  SECTION 10-2205. STORAGE AND DISPOSAL.  (a) Except as specified herein, the City shall move Personal  Property to a place of storage.  (b) Except as specified herein, the City shall store impounded Personal Property for 60190 days, after which time, if not claimed, may be discarded. The City shall not be required to undertake any search for, or return, any impounded Personal Property store for longer than 60190 days. (c) The City shall maintain a record of the date any impounded  Personal Property was discarded.  SECTION 6. This ordinance shall become effective and in full force and effect at 12:01  a.m. on the thirty-first day after its final passage.  9of10  Packet Pg. 566    STATE OF CALIFORNIA ) COUNTY OF FRESNO CITY OF FRESNO  SS. )  ,TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing ordinance was adopted by the Council of the City of Fresno, at a regular meeting held on  the  day of  2024.  AYES NOES ABSENT : ABSTAIN : Mayor Approval: Mayor Approval/No Return: Mayor Veto: Council Override Vote:  2024 2024 2024 2024  TODD STERMER City Clerk By: Deputy  Date  APPROVED AST TO FORM: ANDREW JANZ City Attorney By:  Angela M. Karst Senior Deputy City Attorney  Date  10of10  Packet Pg. 567    ine Capitai GON2  AGENDA ITEM 15  Dityof Gongales  tej  CIYMANAGERDEPAKIMENI  STAFF REPORT  TO: DATE: FROM:  Honorable Mayor Rios and City Council  October 21, 2024 Carmen Gil, City Manager  THROUGH: Carmen Gil, City Manager SUBJECT: Report on Parking District Formation  RECOMMENDATION  Iti isr recommended that the City Council receive the report and provide Staff with direction on whether to move: forward with] preparation of an ordinance facilitating the establishment of parking districts.  BACKGROUND  Over the course of the last few months the City Council has discussed the possibility of establishing residential parking districts in the City. Members of the community have complained about the lack of street parking and illegal parking in their neighborhoods (across driveways, over handicap ramps), and councilmembers have observed and reported significant parking violations and congestion throughout the City. The problem seems to be based inj part on the fact that on-site parking spaces, such as garages and driveways, are being used for storage purposes. Additional problems arise due to the fact that in many cases, each residence houses a multitude of car owners all vying for aj place to park vehicles.  REVIEW AND ANALYSIS  As a general matter, municipal parking districts operate by imposing parking restrictions or prohibitions on an identified grouping of streets. Restrictions may include an outright prohibition to parking or a limitation on how long you can park on the street. Exemptions to the restrictions are then established by way of permits issued to local residents. For example, a street could be restricted to no more than two- hour parking unless you are ai resident with a valid parking permit. The number of permits per resident is always limited, and there is often a cost associated with thei issuance of the permits. (Such costs are used  too offset the expense of operating the district.)  Packet Pg. 568    Vehicle Code Section 22507 provides cities with the authority to adopt measures that restrict parking on  designated public streets. Section 22507 reads in relevant part  "Local authorities may..prohibit or restrict..parking..of vehicles...on streets or highways, or portions thereof, during all or certain hours of the day [and] may include a designation of certain streets upon which preferential parking privileges are given to residents and merchants adjacent to the streets for their use...under which residents and merchants may be issued a permit or permits that exempt them from the prohibition of  parking."  The typical parking district formation process contains the following elements:  1. Formation of a restricted parking district is usually initiated at the request of residents via petition. The petition must describe the parking problem and how establishing a parking district will assist in the elimination or reduction of overflow parking impacts. The proposed district boundaries should be included as a part of the application process and various requirements may be imposed in this regard. For example, the City may require that the proposed district must contain a minimum number of contiguous blocks and must always include both sides of the street. Thej petition must also represent the support of a majority of the residents proposed to be impacted by district formation (a minimum of 51%) although in several examplesIreviewed the required percentage of support was higher. 2. Once the petition results have been verified, the City prepares aj parking study or on-street parking survey to determine whether the area in question meets certain thresholds justifying parking restrictions. Considerations include the average length of time vehicles are parked, percentage of non-resident vehicles parking in the zone, and the total number of vehicles 3. If the parking study/survey reveals that formation of aj parking district is warranted, aj public hearing is conducted for input from the residents within the proposed district. Information to be provided by the City includes a description of the boundaries of the proposed district, 4. After the public hearing, the request to establish the parking district is presented to the Of the various programs I reviewed, once a parking district ordinance is in place, formation of a district can take anywhere between 61 to 18 months depending on the size of the district and other factors. My review of parking district ordinances and programs indicated that the parking district concept has primarily been embraced by larger cities with a complex set of rules and regulations governed by a specially formed board or commission. Additionally, districts are often formed in response to parking congestion caused by an adjacent facility or use, such as a college, arena, or public transportation hub. That doesn't mean such programs can't be carried out on a smaller basis, but the City should recognize that establishing and enforcing new parking restrictions may be taxing on a smaller city with limited Ih have attached some sample ordinances and policies for your review. If the Council is interested in establishing parking districts they should provide direction and Staff will prepare the necessary  using on-street parking during the study period.  proposed parking restrictions and the cost of parking permits.  City Council for consideration.  administrative and enforcement resources.  implementing ordinance for future consideration.  Packet Pg. 569    Explain Recommendation and How it Supports the Vision.  Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and  committed: to working collaboratively to preserve andi retain its small town charm.  Explain: Ensuring adequate and legal street parking in the City's residential and commercial neighborhoods provides safety and aesthetic benefits to our citizens and helps the City to  maintain its small-town charm.  Explain how the Recommendation Directly Implements the Mission  The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our  diverse community. X_Yes No. NA  Explain: See above.  City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment  opportunities in an evironmentally sustainable manner. Yes NO_XNA  Explain: See above.  Strong, fiscal policies allow us toj provide appropriate infrastructure, for:  Public Safety Housing Recreation Environment Education Explain: NA. ALTERNATIVES  Yes Yes Yes Yes Yes  No_XNA No XNA No X_NA No XNA No XNA  Provide Staff with direction on possible parking districts.  Do not provide direction and request additional information before making a decision.  BUDGET! IMPACT what they may be at this time. CONCLUSION parking districts. PUBLICNOTICE None required.  There will be costs associated with the formation of parking districts, but it is too difficult to determine  Iti is recommended that City Council receive the Staff's report and provide direction on the formation of  Packet Pg. 570    Attachments: 1. Exhibits A-F  Packet Pg. 571    10/15/24, 9:42AM  City of Rancho Cucamonga, CA PERMIT PARKINGI DISTRICTS  EXHIBIT A  City of Rancho Cucamonga, CA Tuesday, October 15, 2024  Title 10. Vehicles and Traffic  Chapter 10.50. PERMIT PARKING DISTRICTS  $10.50.010. Definitions.  As used in this chapter, the following terms shall have thet following meanings:  "Engineer" means the city engineer of the city or designee.  "Guest" means any person visiting or intending to visit a resident in a permit parking district. "Permit parking district" means an area established by resolution of the city council wherein parking restrictions apply to all vehicles except vehicles which have been issued a parking permit pursuant to "Resident" means a person who lives in a dwelling unit located within a permit parking district. (Code 1980, S 10.50.010; Ord. No. 39-C, S 1, 1988; Ord. No. 870 Recodification), 2014) $1 10.50.020. Designation of permit parking districts; findings.  this chapter and vehicles exempted by section 10.50.100.  The city council may establish permit parking districts by resolution. Any such resolution shall designate the boundaries of the permit parking district and shall specify the nature of the parking limitations which apply within the district to operators of vehicles other than vehicles which have been issued a permit pursuant to this chapter, or which are exempted from this chapter pursuant to section 10.50.100. Every A. Vehicles, operated by persons whose destinations are outside the proposed parking district, do or may substantially and regularly interfere with the use of the majority of available parking spaces for B. The interference by such vehicles occurs at regular and significant daily or weekly intervals; C. That such vehicles being driven or parked in the area of the proposed permit parking district cause or are the source of unreasonable noise, traffic hazards, environmental pollution, parking availability for residents, or devaluation of real property in such proposed district; D. That 75% of the residents within the proposed district desire, agree or request permit parking privileges (unless established by city council action in absence of a petition); E. That no unreasonable displacement of vehicles will result into surrounding residential areas; F. That no alternative solution, other than the establishment of the permit parking district, is practical. (Code 1980, S 10.50.020; Ord. No. 39-C, 1, 1988; Ord. No. 870 (Recodification), 2014; Ord. No. 947  such resolution shall be based on the findings as follows:  use of residents within the proposed permit parking district;  $1,2019)  $10.50.030. (Reserved)  Packet Pg. 572  PeodOcomPURRMP2N6-G228  17S    10/15/24, 9:42AM  City of Rancho Cucamonga, CAF PERMIT PARKING DISTRICTS  $10.50.040. Petitions.  Residents may petition the city council for the establishing of a permit parking district. Any such petition shall designate the boundaries of the proposed district and shall be signed by at least 75 percent of the residents within the proposed district. Such a petition shall be filed with the engineer who shall prepare areport to the city council on the proposed district, including the engineer's recommendations regarding the establishment thereof. The engineer shall forward his report, together with the petition, to the city council. Nothing in this section shall be construed to limit the authority of the city council to establish a (Code 1980, S 10.50.040; Ord. No. 39-C, $1, 1988; Ord. No. 870 (Recodification), 2014)  permit parking district in the absence of such a petition.  $1 10.50.050. Signs.  Upon the establishment of a permit parking district, the engineer shall cause appropriate signs to be erected in the district, indicating thereon the parking limitation applicable to the district and the exemption therefrom of vehicles with permits. The regulations pertaining to any permit parking district shall not apply until signs or markings giving adequate notice thereof have been placed.  (Code 1980, S 10.50.050; Ord. No. 39-C,51,1988)  $1 10.50.060. Exemption for permit holders.  The parking limitations imposed within a permit parking district pursuant to this chapter shall not apply to vehicles for which a parking permit pertaining to that district has been issued and displayed in the manner prescribed in section 10.50.090. No such permit shall reserve any particular parking place within the district to the holder of the permit. Each such permit shall be valid only for the permit parking  district for which iti is issued.  (Code 1980, S 10.50.060; Ord. No. 39-C, $1,1 1988) $1 10.50.070. Issuance of permits.  Applications for permits to park within a permit parking district may be made by any resident within such district. Such applications shall be filed with the engineer. Unless otherwise prescribed by the resolution establishing the district, not more than three permits (exclusive of guest parking permits) shall be issued to residents of any single dwelling unit. Any person aggrieved by the decision of the engineer may appeal such decision to the city manager, whose decision on the matter shall be final.  (Code 1980, S 10.50.070; Ord. No. 39-C, $1, 1988) S 10.50.080. Guest parking permits.  Unless otherwise prescribed in the resolution establishing a permit parking district, each resident holding a parking permit shall be entitled to receive guest parking permit forms from the engineer. The use of guest parking permits shall be designated in the resolution establishing the permit parking  district.  (Code 1980, S 10.50.080; Ord. No. 39-C, $1, 1988) S 10.50.090. Display of permits.  A. A parking permit issued pursuant to this chapter (other than a guest parking permit) shall be permanently affixed to the lower driver side of the inside of the rear window of the vehicle for which  it was issued.  Packet Pg. 573  pAeAROcomPIURRMB29WS-2E28    10/15/24, 9:42AM  City ofF Rancho Cucamonga, CAPERMIT PARKING DISTRICTS  B. Guest parking permits shall be displayed face up on the driver front dashboard of the vehicle for  which it was issued.  (Code 1980, S 10.50.090; Ord. No. 39-C, $1,1 1988) $10.50.100. Exempt vehicles.  The following vehicles are exempt from the parking restrictions applicable to any permit parking district: A. Repair, maintenance, refuse collection, utility, delivery and service vehicles being used in the B. Vehicles owned or operated by any governmental agency, or contractor of a governmenta agency, C. Emergency, life support and health care vehicles being used in the course of business.  course of business;  being used in the course of business; (Code 1980, S 10.50.100; Ord. No. 39-C,S1,1 1988) $1 10,50,110.Authority of the engineer.  The engineer is authorized to establish rules and procedures and to produce signs, forms and other  materials necessary or appropriate toi implement the provisions oft this chapter. S 10.50.120. Dissolution of permit parking district.  (Code 1980, S 10.50.110; Ord. No. 39-C,$1,1988)  The city council may, by resolution, terminate and dissolve any previously established permit parking  district.  (Code 1980, S 10.50.120; Ord. No. 39-C,1, 1988) S 10.50.130. Penal provisions.  A. Unless exempted by the provisions of this chapter, no person shall stand or park a motor vehicle in any permit parking district in violation of any parking restrictions established pursuant to this B. No person shall falsely represent himself or herself as eligible for a parking permit or furnish false information to the engineer or his representatives in an application for a parking permit. C. No person who has been issued a parking permit shall thereafter allow the use thereof by any other D. No person shall copy, produce, create or use any facsimile or counterfeit parking permit. E. Any act or omission declared, unlawful by the provisions of this chapter is an infraction punishable by a fine not to exceed that set by the current uniform countywide bail schedule pursuant to the  chapter.  person.  terms of the California Vehicle Code. (Code 1980, S 10.50.130; Ord. No. 39-C, $1, 1988)  Packet Pg. 574  tps.lecode360.com/pmnuRA49279927guid-43288248  3/3    10/15/24, 9:28A AM  City of San Bruno, CARESIDENTIALPERMITPARKING  EXHIBIT B  City of San Bruno, CA Tuesday, October 15, 2024  Title 7. Vehicles and Traffic  Chapter 7.18. RESIDENTIAL PERMIT PARKING  $7.18.010. Purpose and intent.  The city council is enacting the ordinance codified in this chapter in order to:  A. Create a preferential parking program for streets impacted by transit facilities, or external or other parking impact generators, which program is necessary to alleviate certain nuisance parking by nonresident vehicles and to provide reasonably available and convenient parking for the adjacent B. Protect the residents of designated residential parking permit districts from unreasonable burdens C. Preserve the character of designated residential parking permit districts as residential  resident;  ing gaining access to their residences;  neighborhoods;  D. Promote the peace, comfort, convenience and welfare of all inhabitants of the city;  E. Promote a cooperative effort among neighbors in dealing with a shortage of parking spaces on the F. Create procedures that will enable residents of the city to request the establishment of neighborhood parking restrictions within the area in which they live which are in addition to, and likely to be more restrictive than, the city's standard parking regulations for such area based upon G. Provide for the issuance of a certain number of parking permits to the residents of such designated areas, the display of which will serve to exempt their vehicles from the parking restrictions.  streets where they reside;  established criteria as set forth in this chapter;  (Ord. 1697, 2004; Ord. 1877 $2 2, 2019; Ord. 1900 $3, 2021) $7.18.020. Legislative findings.  The city council finds:  A. That commuter vehicles, defined as those vehicles operated by persons whose destinations are to nonresidential areas, and vehicles associated with external or other parking impact generators, do or may substantially and regularly interfere with the use of the majority of available public street or B. That the interference by the commuter and other vehicles referred to in subsection A of this section C. That the majority of the residents adjacent to the proposed preferential residential permit parking district support its creation and are impacted by BART or Caltrain transit facilities, or external or  alley parking spaces by adjacent residents;  occurs at regular and significant daily or weekly intervals;  other parking impact generators;  Packet Pg. 575  pslecOcmpnIsASOTRUS-t2N8  T70    10/15/24, 9:28AM  City of San Bruno, CARESIDENTIAL PERMIT PARKING  D. That no unreasonable displacement of commuter and other such vehicles will result into E. That a shortage of reasonably available and convenient residential relating parking spaces exists in  surrounding residential areas; the area oft the proposed zone; and F. That no alternative solution is feasible or practical. (Ord. 1697, 2004; Ord. 18775 $2, 2019; Ord. 190053,2021)  $7.18.030. Definitions.  As used in this chapter, the following words and phrases shall have the meanings ascribed to them in Demonstrated need" means and includes, but is not limited to, a situation where the city council determines that there is strong support by the residents within a proposed residential permit parking district for creating such a district due to measured impacts from either BART or Caltrain transit facilities, "Display" means to maintain and associate with the subject vehicle a placard, sticker, or other identifying "Dwelling unit" means al house, apartment, condominium, townhouse, or other type of residence, designed and used exclusively for residential occupancy, but noti including motels or hotels. "Guest" means a person who visits or is employed by a resident within a residential permit parking "Motor vehicle" means an automobile, truck, motorcycle or other motor-driven form of transportation not "Nonresident vehicle" means a motor vehicle parked or left standing in a designated residential permit parking district without having displayed thereon a parking permit for such district issued by the city pursuant to this chapter, regardless of whether such motor vehicle is owned or being used by a resident "Owner" means a person that has at least a one-half interest in a parcel of real property within a "Parking permit" means a permit issued by the city pursuant to this chapter to a resident of a designated permit parking district for display on a vehicle owned or used by such resident or his or her guests which "Parking restrictions" means the amount oft time, and/or the day and time of day, vehicles shall be prohibited from parking on a street in a residential permit parking district except with a valid permit. An example of such restrictions may include, two-hour parking, seven a.m. to six p.m. Monday through "Resident" means any person eighteen years of age or older whose legal residential address is a "Resident vehicle" means a motor vehicle parked in a residential permit parking district that is currently registered with the State Department of Motor Vehicles to a resident residing at an address within the "Residential permit parking district" means a contiguous or nearly contiguous residential area with streets or boundaries designated by resolution of the city council establishing the district wherein  this section:  ore external or other parking impact generators. object, whether physical or electronic.  district.  ine excess of ten thousand pounds gross weight.  of the designed permit parking district. residential permit parking district.  is parked or left standing within the boundaries of such district.  Friday, holidays and permits exempted."  dwelling unit located within a residential permit parking district.  residential permit parking district.  Packet Pg. 576  ps/eoeecompmusANSACOTOI-A2NS    10/15/24, 9:28AM  City of San Bruno, CAF RESIDENTIAL PERMIT PARKING  vehicles displaying a valid permit shall be exempt from parking restrictions established pursuant to this  chapter.  (Ord. 1697, 2004; Ord. 1877 $2, 2019; Ord. 190053,2021) residential permit parking district.  $7.18.040. Designation criteria for the establishment of a  The following criteria shall be used by the city council in determining whether a residential permit A. Ar residential parking permit district shall only be considered for streets substantially impacted by BART or Caltrain transit facilities, or an external or other parking impact generator. B. There shall be a demonstrated need" for the establishment of a residential parking permit district before considering implementation. This may include, but is not limited to, a petition by the residents within the proposed district documenting a strong level of support for the formation of such a district and measuring the actual impacts caused by nonresident vehicles utilizing a transit C. Requests to establish residential parking permit districts on specific streets shall be reviewed by the public works department. Review shall validate compliance with the demonstrated need criteria and recommend the specific parking restrictions that are to bei imposed within the district. D. Establishment of a residential parking permit district shall be through council resolution. $7.18.050. Modification or elimination of designated permit  parking district shall be established:  facility.  (Ord. 1697, 2004; Ord. 1877 S 2, 2019; Ord. 190053,2021)  parking district.  The city council may modify the boundaries of a designated residential permit parking district or any of the parking restrictions applicable to such area, or the council may abolish the entire district or rescind  any of such restrictions by resolution following a public hearing. (Ord. 1697, 2004; Ord. 1877 $2, 2019; Ord. 1900 $3, 2021) $7.18.060. Issuance of permits.  A. Persons residing within a designated permit parking district may apply to the police department for parking permits, which shall be granted upon payment of the application fee and submittal of documentation acceptable to the chief of police, or his or her authorized representative, showing proof of residency and matching proof of vehicle registration from the owner residing within the designated district to use each motor vehicle for which a parking permit is requested. B. The city council shall, by resolution, adopt Residential Parking Permit Program Guidelines and Procedures, which may be amended from time to time, and which will govern the implementation Permits will not be issued for trailers, boats, mobile homes, construction related equipment or D. The number of permits that may be issued to the occupants of each dwelling unit located within the designated permit parking district shall not exceed two per dwelling unit, provided, however, that the chief of police, or his or her designee, upon the showing of special circumstances or unavoidable hardship, shall have authority to issue a greater number of parking permits to the  and operation of the program.  commercial vehicles exceeding six thousand pounds gross vehicle weight.  occupants of any dwelling unit within the designated permit parking district.  Packet Pg. 577  psleca8OcompiISAS0OTRuC-428  J70    10/15/24, 9:28AM  City of San Bruno, CAF RESIDENTIAL PERMIT PARKING  E. Parking permits shall be issued for a term of two years and may be renewed for additional terms of two years upon payment of the renewal fee and, if requested by the chief of police, upon F. The chief of police shall determine from time to time the manner in which vehicles will be required G. The chief of police shall have authority to issue rules and regulations concerning the granting, renewal and display of parking permits, provided the same are consistent with the terms and H. In the event any person is denied a permit to park within the designated residential permit parking district, he or she shall have the right to appeal the decision in accordance with Chapter 1.32  resubmittal of the applicant's proof ofr residency and proof of vehicle ownership.  to display residential parking permits. provisions of this chapter.  (Appeals to Council) oft this code.  (Ord. 1697, 2004; Ord. 187752, 2019; Ord. 190053,2021)  $7.18.070. Fees for issuance and duration of permits.  The Council may establish, by resolution, fees for the issuance of residential parking permits, guest parking permits and for the replacement of lost, damaged or destroyed permits or stickers as set forth in  the city's master fee schedule.  (Ord. 1697, 2004; Ord. 1877 $2, 2019; Ord. 1900$3,2021) $7.18.080. Termination of permits.  Residential or guest parking permits shall terminate upon any of the following events: A. When the vehicle for which a permit has been issued is either transferred or sold;  B. When the permit holder no longer owns, resides in, or leases a residence within the residential  permit parking district;  C. Upon the expiration of the calendar years for which a permit has been issued.  (Ord. 1697, 2004; Ord. 187752,2 2019; Ord. 190053,2021) $7.18.090. Guest parking permits.  A. An eligible applicant may obtain a guest parking permit for the purpose of allowing a guest to park B. An eligible applicant for a guest parking permit shall be any person eligible to obtain a residential C. Guest parking permits shall be issued as specified in the Residential Parking Permit Program  within the residential permit parking district.  parking permit pursuant to criteria set forth in this chapter. (Ord. 1697, 2004; Ord. 1877 S 2, 2019; Ord. 1900 S 3, 2021) $7.18.100. Display of permits.  Guidelines and Procedures.  Parking permits shall be displayed as provided in the Residential Parking Permit Program Guidelines  and Procedures.  (Ord. 1697, 2004; Ord. 1877 S 2, 2019; Ord. 190053,2021) $7.18.110. Posting of signs.  Packet Pg. 578  pslaeae.compriusASOTpuG-42S1e    10/15/24, 9:28A AM  City of San Bruno, CAI RESIDENTIAL PERMIT PARKING  A. Prior to the posting of signs, the city council shall adopt a resolution designating the boundaries ofa residential permit parking district, the time limitation upon parking within the district, and the days and hours during which parking shall be restricted, as determined by the city council after the public B. The parking restriction established for a residential permit parking district shall become effective and enforceable upon the posting of street signs giving notice of such restrictions to the public in the manner prescribed by the California Vehicle Code. The public works director shall have the C. Street signs giving notice of parking restrictions shall be double sided and placed sO as not to be  hearing.  responsibility ofi installing and maintaining such signs. more than one hundred fifty feet between signs. (Ord. 1697, 2004; Ord. 1877 S 2, 2019; Ord.1 190093,2021)  $7.18.120. Violations.  A. Iti is the sole responsibility of the owner, operator, or manager of a vehicle for which a valid parking permit has been issued to become familiar with the provisions for and limitation on the use of the parking permits. gnorance of the provisions and limitations of this chapter is not a defense against B. Violations of this section shall be deemed to be an infraction and each person in violation of this section shall pay a fine in such amount as established from time to time by resolution of the city council. It is unlawful and a violation of this chapter, unless expressly provided to the contrary 1. To park a motor vehicle in excess of the posted time restrictions on a street in a residential 2. To park a motor vehicle within a residential permit parking district with parking permit evidencing that such permit has expired or has been terminated or is not valid for the area in 3. To falsely represent himself or herself as eligible for a parking permit or to furnish false 4. To use or display a parking permit on a motor vehicle other than that vehicle for which such 5. To sell, lend or otherwise permit the use or display of a parking permit for the purpose of profit 6. To copy or create a facsimile or counterfeit parking permit, nor: shall any person use or display 7. To park a motor vehicle upon any street during those hours in which parking is prohibited for C. All nonresident vehicles which are parked or left standing in violation of any parking restriction established pursuant to this chapter shall be subject to the same fines and penalties in effect for D. For violation of this chapter, the chief of police, or his or her authorized representative, may revoke the residential parking permit of any person found to be in violation of this chapter. Upon written notification thereof, the person shall surrender such permit to the chief of police, or his or her authorized representative. Failure to do sO shall constitute a separate violation of this chapter. Any appeal of the decision to revoke the residential parking permit shall be made in accordance with  any action brought about due to an illegal use of the permit.  herein, for any person:  permit parking district without a valid parking permit properly affixed;  which such vehicle has been parked;  information in an application for any such permit;  permit was issued; orf favor;  acounterfeit parking permit;  street sweeping, road repair, or during emergencies.  such area.  Chapter 1.32 (Appeals to Council) of this code. (Ord. 1697, 2004; Ord. 187752,2019; Ord. 190053,2021)  Packet Pg. 579  paedaOcomPNIsAOTAN-2SNS  5/6    10/15/24, 9:28AM  City of San Bruno, CARESIDENTIAL PERMIT PARKING  $7.18.130. Exemptions.  A. Amotor vehicle on which is displayed a valid, unexpired parking permit shall be permitted to stand or be parked within the designated permit parking district for which such permit has been issued without being subject to the neighborhood parking restrictions established for such district pursuant to this chapter. Such parking permit shall not constitute the guarantee or reservation of an on-street B. Nothing contained in this chapter shall be interpreted in a manner that will affect, impair, or supersede the enforcement of any other state or local laws, ordinances, or regulations, whether pertaining to parking or otherwise, and the same shall continue to be applied with full force and effect in all designated permit parking areas. In the event of any conflict or inconsistency with the parking restrictions established pursuant to this chapter, such other laws, ordinances and C. This chapter shall not permit the residential permit parking holder to leave standing his or her vehicle for more than seventy-two hours nor during the times posted for street sweeping, if D. The following vehicles are specifically exempted from the parking restrictions imposed by this 1. Motor vehicles being used by persons with disabilities meeting the requirements of Section 22511.5 of the California Vehicle Code and displaying a valid, unexpired identification placard; 2. Ambulances, fire department vehicles, police vehicles, authorized emergency vehicles as defined by state law, public utility vehicles engaged in work in the designated residential parking permit area or other official city vehicles used in the course of official government 3. Commercial vehicles parked for the purpose of loading or delivering of goods, wares or merchandise from or to any building or structure in a residential permit parking district or delivering materials to be used in the repair, alteration, remodeling, construction or reconstruction of any such building or structure for which a building permit has previously been  parking space for the exclusive use of the permit holder.  regulations shall be controlling.  applicable. chapter:  business;  obtained.  (Ord. 1697, 2004; Ord. 1877 $2, 2019; Ord. 1900 S 3,2021)  Packet Pg. 580  psleococompamusASOOTpNc-A23S    10/15/24, 4:20PM  Residential Permit Parking Program City of Salinas  EXHIBIT C  SALINAS en IN LANDI RICH IN  Home hntps//www.lyotsalinasorg/Home) / Your Government nttps//www.ityofsalinasorglour-Government) / Departments htps/wwwclyolsalincsoglour-colermentDeporments, /  Public Works nttps/www.chyofsalinasorg/our- Sovermen/Deparments/Publc-Wors, / Traffic and Transportation Engineering nttps/www..hlyolsdllyofsalinasorg/our- Sovernment/Deportments/Pubic-works/Trdffic-and- Tonporctoingneeing, / Residential Permit Parking  Program  Residentiql Permit Parking  Program  Residential Permit Parking Districts are parking zones in residential areas that specifically limit on-street parking to residents with a  permit.  Residential Permit Parking Districts are initiated at the request of residents who petition the City. The process requires a completed and certified valid petition and a parking study. Community meetings are held and the Traffic and Transportation Commission reviews the proposed program. City Council must approve the program by adopting a resolution to establish a Residential Permit  Parking District.  Ify you live in an area of the City which has already established a Residential Permit Parking District, you may purchase Annual Residential Permits, Annual Guests Permits or Daily Guest Permits. Only residents residing on streets within a Residential Permit Parking District may apply for these permits. Vehicle registration for each  Packet Pg. 581  htps/wwwalyolsainasonpourGovemmentDepatmentsPuaioWonhafiaffcamdTemporatonéngneenpResdenia-PemmiPahmgrrogram 170    10/15/24, 4:20F PM  Residential Permit Parking Program City of Salinas  vehicle needing a parking permit along with proof of residency will be prior to the issuance of any residential parking permit. To purchase AI Residential Permits, Annual Guest Permits, or Daily Guest Permits pli  contact the Finance Department:  htipslpmb.csustaneduResidentialPermits/Salinas nttpsllpmbcsustanedu/ResidentlPermits/Salinas)  How can! IInitiate a Residential Permit  Parking Program?  Residential Permit Parking Districts are initiated at the request of residi petition the City. The process requires a completed and certified petiti a petition received and meets the minimum 51% support requirement, Staff will conduct a parking study. Then community meetings are held Traffic and Transportation Commission reviews the proposed progran the City Council must approve the program by adopting a resolution. To get started on a petition, please sign and submit the following form  htpsllwpw.ciyolalinsoglatealdetoutfles/deparments files/fir epartment fles/parking/pettiontorresdentalpermitparking (PDF,23KB) (fles/sharedasetsets/cly/lvlliresidents/documents/pets/petitionforesiden  tparking.pdf).  District 3A Residential Permit Parking  Program  The City received a petition from residents of the neighborhood street surrounding the Salinas Valley Memorial Hospital located on East Rom Staff found that the unrestricted parking within the petition areas onc htpsyNw.tiyofsainasorgpou-GouvermmenlDepatmentsPubic-Wonks/raficand-Tanspontaton-EngnerngResicental-Permt-Pax  Packet 582 Pg.    10/15/24, 4:20PM  Residential Permit Parking Program- City of Salinas  days and certain times of the day created a situation in which streets be used for parking by the residents or their guests. The Salinas City C approved the establishment of Preferential Parking District 3A by adop  resolution on December 1, 2009.  1.T There is a maximum six (6) Resident Parking Permits per reside fee for each Resident Permit Parking Permit is: 2.1.$25.00 each for the initial 2 permits at each residence; 3.2.$20.00 each for the third permit at each residence; 4.3.$15.00 each of the fourth permit for each residence; and 5.4.E Each permit thereafter shall be $10.00 each up to the limit.  ResidentiglParking Dist 3A.Reso 20048 (PDF, 727KB) fleslshoredossetslctllpubic.motalddocuments/matic- docs/residentidl-paring-dist-3-reso-2048pd,  District 3A Map (PDF, 80IKB) (fles/sharedassetslciy/vl2pubic- works/documents/tofie-decsldistict-3a-moppd)  How can Ito Opt-Out of the Residentia  Permit Parking Program?  Residents requesting to be removed from the residential permit parkir program must submit a petition. A majority (51%) of residents must siç petition to opt out of the permit parking program. The decision to opti  program may result in the following:  1. Not being able to re-enter the program for a two year time peri 3. If the residents elect by petition to are are eligible to re-enter th program, a new parking study may be required and residents V required to pay the full implementation costs to re-enter the Di: that time. The costs for re-entering the program includes the pr study, signs, street markings, permit issuance management,  2. Parking spill may occur on the street.  Packet Pg. 583  htps.www.elyolsalnasanasogrourGovemmenuDepanmentsPusiceonaftall-amcTemspontatomEnghnewinpResdenlu-Pemi-Pahmgyrogram 375    10/15124,4:20PM  Residential Permit Parking Program- City of Salinas  software/program changes, and any other costs related to adc  street to the district.  A petition form can be downloaded by clicking on the following link:  ntpsllvopw.ciyotaalincaglates.detaur.lesldepatments files/fir epartment eslparinglesdentapentodparmtparingopto.r (PDF,20KB) lles/shoredassetsicly/vllresidents/documents/residentialpermit:  ptout.pdf).  Helpful Residential Permit Parking Documents  District 3A Map (PDF, IMB) (fles/sharedassets/ciy/v2public- on/documents/svmn. parkaingpermtprogrammp.04222  Resolutions Establishing. District 3A (PDF, 891KB) fles/sharedassetslciy/vllpublic- works/documents/residentidl permit_parking: resolutions establishing. 3a 19778 and 20048.pdf).  Petition For Establishing. AF Residential Permit Parking. District (F works/documents/pettionforresidentiaipermitparking.pd, Petition To Opt OutotAResidentia! Permit Parking. District (PDF, works/documents/resdentiapemiparkingoptoutpdn, Replacement Residential Parking. Permit Application (PDF,101KB) works/documents/replacementresidentiaiparkingpermtappic  fles/shgredassets/cly/vllpubic-  fles/shgredassets/cly/llpubic-  fles/shgredassets/ciy/vllpublic-  )  Packet Pg. 584  htps/hww.dlyoksalinasonsoploarGommmenoepmmemsPaie.warralcanéTampotutoméngnemyResdenta-PemtPa:    10/15/24, 4:20P PM  Residential Permit Parking Program City of Salinas  Contact Person: Jose Saucedo, Assistant Engineer  Contact Email (mailtojosesau@cisalinas.ca.us) (link sends e-mail)  Phone Numbers: Office:  (831)758-719 (tel837587196)7  Helpful Parking Resource Links  Purchase Residential Permits, Guest Permits or Daily Permits F  hntips//www.cilyotsalyofsalinasorglYour- Goverment/Departments/Finance,  Packet Pg. 585  tps.wwwatyolsalinasanaseprourGowemmeniDeparmensPuik-Wounsfralc-amdtentatoméngnempRescmu.PemiePahigrrogram 5/5    CITY OF BERKELEY  EXHIBIT D  Resident Parking Permits  Residents in certain areas of Berkeley can apply for a permit to park close to  their home without a two-hour time limit.  In Residential Preferential Parking (RPP) areas, vehicles must have an RPP permit in order to park for more than two hours. This program enables residents to park near their home, while allowing non-  residents to park for short visits.  Ify you live at an eligible address, you can apply for a residential preferential parking permit to exempt you The RPP enforcement schedule varies by area, but is generally 8:00 am - 7:00 pm, Monday - Friday.  from the two-hour time limit. Check the zone map to see if your address is eligible. Review our Frequently Asked Questions for help with specific permit questions.  Residents eligible for RPP permits can also purchase permits for their visitors, in-home care providers, or child-care providers. Eligible businesses can apply for parking.permits for the businessorits  employees.  APPLY FOR A RESIDENTIAL PREFERENTIAL PARKING PERMIT Before applying for a permit, check if your address is eligible for a residential parking permit. Visit the eligibilitymap and enter your address in the search bar to see if you are eligible. For support with using Ify your address is not eligible for a permit but is within an RPP zone, you can follow steps to opt your  the map, please read our userguide.  residential block in to the RPP program. Apply online, in person, or by mail  An annual parking permit costs $66 and is valid until June 30. If you purchase a permit between Januar June, the cost is reduced to $33. Annual permits are digital, SO your vehicle's license plate functions a  your permit.  You can choose to apply for your permit online, in person, or by mail.  Packet Pg. 586    Apply for a residential parking permit online by logging in or creating an account and selecting  "Annual Residential." Your application will take 5-7 business days to process.  Apply in person at the Customer Service Center, located on the 1st floor of 1947 Center Street in Berkeley. Your application will be approved immediately and your permit activated as soon as Apply by mail by sending your completed application, supporting documents, and payment by check or money order made out to "City of Berkeley." Applications by mail will take 10-15 days to  payment is applied.  process. Send the materials to: City of Berkeley  PO Box 29, Berkeley CA 94701  Each address can have up to three residential parking permits, or up to two if you are in Zone P. If you need more than the maximum for your address, submit a waiver form. If approved, you will pay a $100  surcharge on top of your individual permit fees.  Submit photo ID, vehicle registration, and proof of residency to apply To apply for a residential parking permit, you will need to submit a copy of your governmentissued photo identification, your vehicle registration, and a proof of residency (if not already listed on your registration)- Permits cannot be renewed if you have any outstanding parking citations (unpaid for more than 21 calendar days). Pay citations at the online citation portal. If you are unable to pay your citations,  you may qualify for a low-income payment plan. Soyernment-issued photo identification  Ifthe address on your photo ID does not match your current Berkeley address, you will need to submit a  secondary proof of residency (see list below).  Vehicle registration  The vehicle must be registered to al Berkeley address.  Ift the vehicle is not yet registered in Berkeley, change your address with the DMV. Take a screenshot of the confirmation page showing your name, license plate, and Berkeley address for use in your application. Ift the vehicle is registered in another person's name, provide a signed letter from the registered owner authorizing their use of the vehicle along with a copy of the registered owner's valid picture ID. Even though thi vehicle is registered in a different name, the vehicle must still be registered to a Berkeley address.  Proof of residency  Packet Pg. 587    You can submit any of the documents below to prove your current residential address:  California Driver's License or ID card Vehicle Registration  Signed lease agreement (within ay year) Current bank statement Current PG&E billing statement Current telephone (landline) bill Current major credit card billing statement  Cable or internet bill EBMUD water bill  City of Berkeley bills (Refuse bills, Fire Alarm bills, Fire Inspections bills, etc.)  Renewing or updating your permit  Residential parking permits are generally valid from July 1 to June 30. You will receive a parking permit renewal notice by mail by May 1, and will need to complete your permit renewal before June 30, when  the existing permit expires.  The renewal notice contains detailed instructions for renewing your permit online, by mail, or in person. If you do not receive a renewal notice or if you miss the deadline, you will need to submit a new  application.  If you replace your vehicle or your license plate, you can request an update to your existing permit, and scounter@betketeycagor with your name, address, photo ID, and new vehicle registration or license  do not need to apply for a new permit. Request an update to your permit by emailing  plate information.  You can request a short-term vehicle change if your car is in the repair shop and you have a loaner car.  Email scounter@berkeleyca.gov and provide:  the license plate number ofi the vehicle that is being temporarily replaced the replacement vehicle license plate number, make and model  when to change the plate  Please email the City again when you have your regular vehicle back.  Packet Pg. 588    PURCHASE 1- OR 14-DAY VISITOR PERMITS  You can purchase visitor parking permits sO that your guests can park in your neighborhood without the 2-hour time limit. You do not need to have a car or a residential parking permit yourself to purchase visitor permits. Purchases require a governmentissued photo identification and proof of residency.  1-day visitor permits for single day guests or large gatherings  Purchase either a 1-day digital or 1-day hangtag visitor permit for one-day guests. You can purchase up  to twenty 1-day visitor permits for $3 each.  Purchase digital visitor permits online. You will need to activate a digital permit online when you want to start using it. Digital 1-day visitor permits are valid for 24 hours following activation, cannot be edited once activated, and cannot be scheduled for future dates. To avoid citation during enforcement hours, vehicles must be moved once the digital 1-day permit expires. You can activate Purchase physical hangtag visitor permits in person or by mail. You will need physical hangtags  up to five digital 1-day passes at one time for a large gathering.  (not digital passes) if you are hosting a large gathering of over five people.  Inp person: Visit the Customer Service Center.  By mail: send your completed application, supporting documents, and payment by check or money order made out to' "City of Berkeley." Send the materials to: City of Berkeley, PO Box 29, Berkeley CA 94701  14-day visitor permits for multi-day guests  Residents can purchase up to three 14-day visitor permits for $34 each. 14-day visitor permits are valid for 14 consecutive calendar days. Please note all vehicles are subject to the 72-hour rule, even if they  have a permit.  Apply in person at the Customer Service Center. You can apply up to three weeks before you intend to  use the permit.  APPLY FOR AN IN-HOME CARE PARKING PERMIT  Residents who live at addresses eligible for residential preferential parking permits and require in-home care can apply for a hangtag parking permit for their care-giver. You can apply for up to three in-home care permits for your care-givers to be able to park without a 2-hour time limit. Permits cost $66 and are  valid from July 1 - June 30. To apply, you will need to prepare:  Packet Pg. 589    Physician Reviewed Medical Affidavit form Completed In-Home Care Permit Application  Proof of residency Photo ID  Check or money order, payable to City of Berkeley  You can apply in person at the Customer Service Center or send your application to:  In-Home Care Permits Customer Service 1947 Center Street, 1st Floor Berkeley, California 94704  Your In-Home Care Provider can purchase the permits in person for you. They will need a note from you authorizing them to purchase the permit, along with a copy of your dentification, the completed  application, physician statement and payment.  You will be sent a renewal notice before the permits expire on June 30th. You will need to complete a  medical affidavit to renew, but do not need review from your physician.  APPLY FOR A CHILD-CARE PARKING PERMIT  Residents who live at addresses eligible for residential preferential parking permits and require at-home child-care for a minor 12 years of age or younger are able to purchase one transferable hangtag permit per address for use by caregiver(s). Child-care permits cost $83 per year and are valid from July 1 - June  30.  To apply, you will need to provide:  Completed Child-care Permit Application form Completed Child-care Affidavit form  Copy of birth certificate for each child under 12 named in the affidavit  Resident's photo ID  Resident's proof of residency int the requested RPP area  Check or money order payable to "City of Berkeley" (or Visa or Mastercard for card payment)  Packet Pg. 590    Please bring these materials into the Customer Service Center to purchase a permit. Note: the City will simply review any birth certificate(s) furnished by the applicant as part of the review of application  materials. They will not be retained on record.  RELATED DOCUMENTS  RESIDENTIAL AND VISITOR PARKING PERMIT APPLICATION (526.24KB) RESIDENTIAL PREFERENTIAL PARKING PROGRAM FAQS (380.7KB)  RESIDENTIAL PREFERENTIAL PARKING PROGRAM PERMIT WAIVER REQUEST FORM (837.15KB)  RPP ELIGIBILITY MAP GUIDE (172.65KB) RPP OPT-IN HOW-TO GUIDE (147.77 KB)  IN-HOME. AND CHILDCARE PERMIT APPLICATION (197.42KB)  CHILDCARE AFFIDAVIT (80.87 KB) RPP ENFORCEMENT SCHEDULE (639.78 KB)  News  For 2024 Cal Football home games, consider alternative modes of transportation  Renew your residential parking permit before July 1,2 2024  Berkeley Half Marathon on Nov. 19, 2023: Street closures, bus route info  Renew your residential parking permit before July 1, 2023  FINANCE SERVICE COUNTER Email: scounter@berkeleyca.gov  Packet Pg. 591    EXHIBIT E Parking  Establishing A Permit District  Permits Permits Home (parking/permits) Temporary OvernightrV Permit (parking/permis/or Residential Permit Parking (parking/permitsres Residential Permit Parking Application /parking/permits/ap. Residential Maps (parking/permisres Establishinga Permit District (parking/permits/est  1.1 The Residential Permit Parking Program is intended for residential areas that are severely impacted by all-day commuter parking generated by a nearby facility or institution. Areas that are impacted by heavy demand for on-street parking by residents are not candidates for residential permit parking. Neighborhoods that do not qualify for this program are encouraged to pursue other methods, such as short term parking restrictions. 2. Contact Traffic Engineering Operations at (619) 533-3126 to request that your neighborhood reviewed for eligibility in the Residential 3.IfTraffic Engineering Operations determines that the proposed area qualifies for residential permit parking, a petition form will be sent to 4. The petition must be signed by residents of at least 50% of the proposed area. Only residents may sign: property managers and non- resident property owners are not eligible to sign. (Only one signature 5. When the petition has been returned to the Traffic Engineering Operations, and has been verified, a parking study will be conducted to evaluate the impact of commuter vehicle parking on the neighborhood. Impact is determined by taking into consideration such factors as percentage of non-resident vehicles parking in the neighborhood, the average length of time vehicles are parked, and the total number of vehicles using on-street parking during the study 6.Ifthe study determines that a residential permit parking district should be established, a public hearing will be held for all residents of the proposed district. (Residents of the study area will be notified of 7.After the public hearing, the request to establish the district will be presented to the City Council and the Mayor for their approval. 8. The entire process to establish a residential permit parking district will  Parking  Permit Parking Program.  the requestor.  per address is required.)  period.  the hearing.)  take up to 18 months.  Packet Pg. 592    EXHIBIT F  CITY OF SAN BRUNO  RESIDENTIAL PERMIT PARKING PROGRAM  GUIDELINES AND PROCEDURES  SANS City BRUNO  Public Works Department City of San Bruno 567 El Camino Real San Bruno, CA 94066  Packet Pg. 593    RESIDENTIAL PERMIT PARKING PROGRAM GUIDELINES AND PROCEDURES  OVERVIEW  The Residential Permit Parking Program (RPPP) is designed to enhance the quality of life in the residential neighborhoods by reducing the impact of long-term parking of vehicles on certain residential streets by non-residents who do not visit or conduct business with residents. The intent of the RPPP is to provide reasonable, available, and convenient parking for residents on impacted streets and/or neighborhoods. This is accomplished through a multi-step process involving an initial petition by the residents, on-street parking surveys or study completed by the City (if needed), survey by the City to determine resident support, City Council approval, The San Bruno Municipal Code Chapter 7.18, Residential Permit Parking, includes additional  installation of parking signs and ongoing enforcement. requirements and guidelines related to the RPPP.  PURPOSE  The primary purpose of the RPPP is to provide relief for neighborhoods that are affected by overflow parking by non-residents in the neighborhoods through implementation of on-street parking restrictions within a defined or designated district. Permits will be required to park within  the designated district.  PROCESS TO DESIGNATE RESIDENTIAL PARKING PERMIT DISTRICT  Residents wishing to have their neighborhood designated as residential parking permit district must follow the process outlined in these guidelines and as stated int the San Bruno Municipal Code Chapter 7.18 unless otherwise specifically modified by these Guidelines. Inr most cases, the total process from initial request to establishment of a parking district may take approximately six (6) to nine (9) months. Each step is outlined below.  Step 1: Resident/Sponsor Submit Application  Resident(s) or neighbornood sponsor(s) would file an appliçation with the Public Works Department that describe the parking problem in the neighborhood and how a RPPP will be able to eliminate or reduce the overflow parking impacts. The proposed residential permit parking district boundaries shall be included as part of the application to start the process. The proposed residential permit parking district must have a minimum of three (3)contiguous blocks. The blocks can be in any orientation and must include both sides of the street.  Step 2: Initial Staff Review  Upon receipt of the application, staff will review the application and verify whether the proposed  district meets the criteria to establish a residential parking permit district.  Packet Pg. 594    Step 3: Resident Petition  Residents must submit a petition to establish a residential permit parking district to the Public Works Department on the City's Residential Parking Permit Program Petition form. The petition shall contain contact information of neighborhood faclitatorlsponsorts), printed name, address, phone number and signature by one adult who is a permanent resident ini the dwelling unit within each block oft the proposed residential permit parking district. Only one signature per dwelling unit will be considered. A dwelling unit means a house, apartment, condominium, townhouse, or other type of residence, designed and used exclusively for residential occupancy, Ar response rate of 50% + 10 of the dwelling units in the proposed residential permit parking district is required. Accessory Dwelling Units (ADU) will not be considered as dwelling unit for  but not including motels or hotels.  purposes of the petition. Step 4: On-Street Parking Surveys  The Public' Works Department will review the petition to determine if it is complete and complies with all the submittal requirements. The City may, at its discretion, conduct a parking inventory study of on-street spaces and number of dwelling units in the proposed residential permit parking district to determine ifit is possible toi increase the number of permits. When conducting the parking inventory, each on-street space will be assumed to be 20 feet in length as noted within the City of San Bruno Municipal Code 12.100.080. Accessory Dwelling Units will not be Itis generally anticipated that not more than two permits will be issued per dwelling unit. Limiting the number of permits issued will help ensure permit holders are able to find on-street parking. However, having a permit does not guarantee an on-street parking space within the  counted as a dwelling unit for the purposes ofi issuing parking permits.  designated district. Step 5: Residents Survey  The Public' Works Department will conduct a survey of the properties within the proposed residential permit parking district. The survey will include, as a minimum, a description of the residential permit parking district boundary, parking restrictions, and the cost of permits. The survey will be mailed to the dwelling units within the proposed residential permit parking district and one (1) signature per dwelling unit will be counted. A minimum oft fifty percent (50%) of the surveys (simple majority) must be returned to the Public Works Department within the designated time frame and sixty-seven percent (67%) of the returned surveys must support the establishment of the residential permit parking district in order for the process to continue. Ift the returned surveys meet the above survey percentage requirements, the Public Works Director or designee will draft and mail a letter to the residents within the proposed residential permit parking district to inform them of the results. The letter will also notify the residents of the new requirements for on-street parking within the proposed residential permit parking district. Ift the returned surveys do not meet the above survey requirements, the Public Works Department will send a letter to the petitioners denying the request. A one (1): year moratorium on new requests for permit parking shall take effect for the streets within the proposed residential permit parking district of the denied request. The resident(s) or neighborhood sponsor(s) of the petition may appeal a denied request to the Public Works Department within  Packet Pg. 595    thirty (30) days of receiving the notice of denial. Appeals will be heard by the City Council  pursuant to Section 1.32 of the San Bruno Municipal Code.  Step 6: City Council Action  Inc order to officially designate the residential permit parking district, the Public Works Director or designee will prepare the staff report and resolution for City Council consideration. Ata  minimum, the resolution will contain the following findings:  the results of the initial staff review; the petition results; cost of parking permits;  results of the parking inventory study (if applicable);  the residential permit parking district location and parking restrictions hours; and  Step 7: Notice to Residents about RPP Zone Designation  Upon approval of the residential permit parking district by City Council, the Public Works Department will notify the residents regarding the date the residential permit parking district enforcement will begin and how to purchase parking permits. If the City Council denies the request, a one (1) year moratorium on new requests for the streets involved in the denied MODIFICATION OR TERMINATION OF EXISTING RESIDENTIAL PERMIT PARKING The City Council may terminate or modify a designated residential permit parking district when any of the criteria for designation of the residential permit parking district are no longer satisfied or upon determination that the designated residential permit parking district is no longer in the Residents may file an application with the Public Works Department to remove a block(s) from the established residential permit parking district or the entire residential permit parking district designation. However as previously noted, the parking district must have a minimum oft three (3) contiguous blocks. The removal of the residential permit parking district will be considered upon receipt of a petition signed by one adult who is a permanent resident in each dwelling unit. A response rate of 50% + 1 of the dwelling unit is required in the residential permit parking district before the City commences the consideration to remove the residential permit parking district. Accessory Dwelling Units (ADU) will not be considered a dwelling unit for purposes of the Then, the Public' Works Department will conduct a survey of the dwelling units within the proposed residential permit parking district to be removed. The survey will be mailed to the dwelling units within the proposed residential permit parking district and one (1) signature per dwelling unit will be counted. A minimum of fifty percent (50%) of the surveys (simple majority) must be returned to the Public' Works Department within the designated time frame and sixty- seven percent (67%) of the returned survey must support the removal of the residential permit Upon satisfaction of all the above criteria, the Public' Works Director or designee will recommend the residential permit parking district removal request to the City Council. A request  request will begin. DISTRICT  best interest of the City.  petition.  parking district.  Packet Pg. 596    for removal from an established residential permit parking district is effective upon City Council The City shall only consider requests for modification or termination of a residential permit parking district once (1) every year and not until at least one (1) year after the residential permit paring district is established, unless some major changes occur in and round the residential Any block(s) removed from a residential permit parking district will not be allowed to reapply for designation as a residential permit parking district for at least one (1)year from the date the of  adoption of a resolution authorizing the removal.  permit parking district.  the City Council adoption of a resolution authorizing the removal.  GUEST PERMITS  An eligible applicant may obtain guest parking permit for the purpose of allowing a guest to park within the residential permit parking district. An eligible applicant for a guest parking permit shall be any person eligible to obtain a residential parking permit pursuant toi the criteria set forth in the San Bruno Municipal Code Chapter 7.18, Residential Permit Parking and included within the Ar maximum of six (6) guest passes per month will be available for each dwelling unit.  Guidelines herein.  PARKING EXEMPTIONS the holidays.  The permit parking will be enforced from the hours of 6pm to 9am daily and exempt during  Packet Pg. 597