D'Arrigo Bros Easements — Gonzales City Council, October 21, 2024

D'ARRIGO BROS
• Grant of Easement - Sanitary Sewer Easement
• Grant of Temporary Easement
• Appraisal Report - D'Arrigo Property
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
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 October 8, 2024, by D'Arrigo Bros. Co., of California ("Grantor"), for the benefit of the City of Gonzales, an incorporated City ("Grantee"), with reference to the following recitals:

RECIIALS
Grantor owns that certain real property commonly referred to as APN No. APN 223-061-023 (the "Property"), in the County of Monterey, State of California.

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") on a portio of the Property more particularly described on Exhibit A attached hereto (the "Easement Area"), and depicted on the site plan attached hereto as Exhibit B.

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:

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 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 of any building, planter boxes, earth fill or other structures over the hereinafter described Easement Area.

Compensation. Grantor acknowledges receipt of Twenty Thousand Five Hundred Sixty Three Dollars and Zero Cents ($20,563.00) of compensation from Grantee for the Easement in accordance with the value of the 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 are reasonably necessary to access the Easement Area for 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 maintenance.

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 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 the Property or any portion thereof, by foreclosure, trustee's sale, deed in lieu of foreclosure, or otherwise.

Notice of Material Issue. Grantor shall promptly notify Grantee in writing of any material issue or fact that may affect the Easement.

7. Governing Law. This Easement Agreement shall be governed by and construed in accordance with the laws of 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. 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 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.
2 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 enjoin 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 or in equity.

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'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 not be required to indemnity or hold any Grantor Party harmless from and against any loss, claim, demand, cost, expense, lien, fine, penalty, liability, udgment or damages arising from the willful or negligent acts or omissions of a Grantor Party.

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 or indirectly from or related to Grantor's exercise 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 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 of a Grantee Counterparts. This Easement Agreement 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 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.

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 of its costs of suit, including, but not limited to, reasonable attorneys' fees awarded by the court. [Signatures appear on the following pages]
3 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
A notary public or other officer completing this certificate verifies only the 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 CALIFORNIA
) ss.

COUNTY OF )
→ 2024 before me,
personally appeared
I certify 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
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
A notary public or other officer completing this certificate verities only the 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 CALIFORNIA )
) ss.

COUNTY OF )
personally appeared
I certify 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

EXHIBIT A
Legal Description of the Easement Area
Easements #1, #2, and #5 intentionally omitted.

A-1
Grant Deed of
Easement #3 - Sanitary Sewer Easement
APN 223-061-0023
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 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:

A strip of land 5 feet in width lying northwesterly of and contiguous to the westerly line 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, the easterly line of said 5 foot wide strip being more particularly described as follows:

Containing an area of 2,428 square feet, more or less.

This legal description was prepared by:

Lyn a Kovach SURVEYOR
* *
Lynn A. Kovach P.L.S. 5321 5321
<
STATE OF • S. CALIFORNIA
Dated: December 17, 2021
A-2
Grant Deed of
Easement #4 - Sanitary Sewer Easement
APN 223-061-0023
D'Arrigo Bros. Co. of California to City of Gonzales

A 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 strip being more particularly described as follows:

BEGINNING at a point on the westerly line of 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 map filed in Volume 18 of Surveys at Page 87, said easterly line labeled as N52° 04' 43"E, 2256.57' on said map, bears the 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 to the northerly terminus of said easterly line of said land; thence from said POINT OF BEGINNING along said westerly line of said 15 foot wide sanitary sewer easement the 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 5 foot wide sanitary sewer easement described in the deed recorded on April 23, 1985 in Reel 1831, Page 467, Official Records of said County; thence along said northerly end of said 5 foot wide sanitary sewer easement
3) North 77° 52'36" West, 5.00 feet; thence along the westerly line of said 5 foot wide sanitary sewer easement
4) South 12° 07' 24" West, 25.12 feet; thence departing said 5 foot strip crossing said land described in said deed recorded as Document Number 2020000064 5) North 77° 52'36" West, 3.46 feet; thence
A-3
Grant Deed of
Easement #4 - Sanitary Sewer Easement
APN 223-061-0023
D'Arrigo Bros. Co. of California to City of Gonzales
6) North 11° 37' 55" East, 40.71 feet; thence parallel to and 7.50 feet westerly of the westerly line of 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 15 foot wide sanitary sewer easement
8) South 36° 27' 00" East, 7.50 feet to the POINT OF BEGINNING.

Containing an area of 3,390 square feet, more or less.

This legal description was prepared by:

Oye a Kovach ДАТА КОТА
* *
557
Lynn A. Kovach P.L.S. 5321 •.s.

OF CALIFORNIA
Dated: December 17, 2021
A-4
Grant Deed of
Easement #6 - Sanitary Sewer Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales

A strip of land, 15 feet in width, lying 7.5 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 on the map recorded in Volume 23 of Cities and Towns at Page 19, Official Records of said County; thence along the common line between said Tract 3B and said Lot 4, North 52° 26' 39" East, 31.12 feet to the POINT OF BEGINNING; thence 1) North 38° 28'11" West, 887.87 feet to the southerly line of an existing 5 foot wide sanitary sewer easement described in the deed recorded in Reel 1831 at Page 456, Official Records of said County and the end of said strip.

Containing an area of 0.31 acres, more or less.

This legal description was prepared by:
- a Kowach SURVEYOR
Lynn A. Kovach P.L.S. 5321 * *
550
Dated: August 1, 2024 S. CAL FOR
A-5
Grant Deed of
Easement #7 - Sanitary Sewer Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales

A strip of land 15 feet in width lying 7.5 feet on either side of 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 Lot 1 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot 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 of said Lot 1, South 52° 29' 00" West, 14.63 feet to the POINT OF BEGINNING; thence departing said northwesterly line
1) North 41° 51'22" West, 238.60 feet; thence
2) North 48° 47'15" East, 10.58 feet more or less to a point on the easterly line of said tract of land described in said Document Number 2020000064 and the end of said strip.

Containing an area of 3,737 square feet, more or less.

This legal description was prepared by:
a Kowach ALA. KOWL
*
Lynn A. Kovach P.L.S. 5321
Dated: August 5, 2024 OF
A-6
Grant Deed of
Easement #8 - Sanitary Sewer Easement
APN 223-061-023
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 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 of said County, being particularly described A strip of land 15 feet in width lying 7.5 feet on either side of the described centerline:

COMMENCING at the most southwesterly corner of said land shown on said map filed in Volume 36 of Surveys at Page 69; thence along the southerly line of said land South 87° 04' 47" East, 99.66 feet; thence South 20° 14' 51" East, 11.30 feet to the POINT OF BEGINNING; thence departing said southerly line
1) South 87° 04'31" East, 169.21 feet to a point on the southerly line of said land shown on said map and the end of said strip.

Containing an area of 2,538 square feet, more or less.

This legal description was prepared by:

Oye a Koach
Lynn A. Kovach P.L.S. 5321 557
X.s.

Dated: August 5, 2024
A-7

EXHIBIT B
Site Plan of Easement Area
Easements #1, #2, and #5 intentionally omitted.

B-1

EXHIBIT
OF EASEMENT #3
SANITARY SEWER EASEMENT WITHIN TRACTS 3A & 3B IN

THE RANCHO RINCON DE LA PUENTE DEL MONTE, LEGEND
CROSSING LANDS OF D'ARRIGO BROS CO. OF CALIFORNIA

PROPERTY LINE
DESCRIBED IN DOCUMENT 2020000064,

NEW TEMPORARY

OFFICIAL RECORDS OF MONTEREY COUNTY CONSTRUCTION EASEMENT

GONZALES, CALIFORNIA LIMITS OF NEW SANITARY SEWER
IIIIIA
Easement #3 Location EASEMENT

APN ENCUMBERING D'ARRIGO PARCEL
Point of Beginning 223-061-023 EXISTING SANITARY SEWER
Easement #3 EASEMENT
New SS easement
- SS - - NEW SANITARY SEWER LINE

APN APN APN
223-011-032 223-011-036 223-011-059
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION

EASEMENT
Gonzales River Road SS SANITARY SEWER EASEMENT

VICINITY MAP
Not to scale Easement #4
New SS easement
D'Arrigo
Document #2020000064 Easement #6
21 New TCE Easement #3
APN 223-061-023
sting easement encumbering New 5.00' wide
-xi: - D'Arrigo parcel SS easement
PREPARED BY:

POLARIS LAND SURVEYING
CARMEL VALLEY, CA Chunn Ranch LLC
831-659-9564 —New TCE encumbering
3189-OR-1129 Existing
EASEMENT DETAIL Chunn Ranch parcel SS easement
SCALE: AS NOTED VIEW: PLAT DATE: 12-8-2021 APN 223-011-032 SCALE• 1"=40
FILE NAME: IWTF SS PLATS.DWG 20-129.02 1831-OR-456

EXHIBIT
OF EASEMENT #4
SANITARY SEWER EASEMENT WITHIN TRACTS 3A & 3B IN

THE RANCHO RINCON DE LA PUENTE DEL MONTE, LEGEND
CROSSING LANDS OF D'ARRIGO BROS CO. OF CALIFORNIA

PROPERTY LINE
DESCRIBED IN DOCUMENT 2020000064,

OFFICIAL RECORDS OF MONTEREY COUNTY NEW TEMPORARY

CONSTRUCTION EASEMENT

GONZALES, CALIFORNIA LIMITS OF NEW SANITARY SEWER
Easement #4 EASEMENT
Location ENCUMBERING D'ARRIGO PARCEL
APN
223-061-023
Point of Beginning EXISTING SANITARY SEWER

EASEMENT
Easement #4
New SS easement - sS - NEW SANITARY SEWER LINE

APN APN APN
223-011-032 223-011-036 223-011-059
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION

EASEMENT
Gonzales River Road SS SANITARY SEWER EASEMENT

VICINITY MAP
Not to scale Easement #5 D'Arrigo
New SS easement Easement #4
Document #2020000064 New SS easement
encumbering APN 223-061-023 Easement #6
D'Arrigo parcel encumbering
easement D'Arrigo parcel New TCE
encumbering
easement 1831-OR-467 D'Arrigo parcel
Existing
Property Line
-
PREPARED BY:

POLARIS LAND SURVEYING
CARMEL VALLEY, CA Existing -New TCE encumbering Existing 831-659-9564 Chunn Ranch LLC Chunn Ranch parcel
SS easement 3189-OR-1129 SS easement
SCALE: AS NOTED VIEW: PLAT DATE: 12-8-2021 EASEMENT DETAIL 321-OR-21 1831-OR-456 SCALE: 1"=40 APN 223-011-032
FILE NAME: IWTF SS PLATS.DWG 20-129.02

VICINITY MAP
EXHIBIT Violini
Not to scale APN 020-021-003
OF EASEMENT #6
SANITARY SEWER EASEMENT SITUATE WITHIN Existing SS
Easements Mann
TRACT 3B IN THE RANCHO RINCON DE LA Hibino Easement #6 APN 223-061-006 Doc #2020019826 Location
PUENTE DEL MONTE, CROSSING LANDS OF APN 223-011-059 D'Arrigo APN 223-061-023
D'ARRIGO BROS CO. OF CALIFORNIA
Doc. #2020000064
DESCRIBED IN DOCUMENT 2020000064,
OFFICIAL RECORDS OF MONTEREY COUNTY Mann
Lot 5 Lot4 Lot 3 APN 020-021-05C
GONZALES, CALIFORNIA Lot 2 Lot 1
V.23 CITIES&TOWNS P. 19
Existing SS Easement D'Arrigo
Per 321-OR-21
APN 223-061-023
Existing SS Easement New 50'
Per 1831-OR-456 wide TCE Document #2020000064 Easement #6 New 15' wide SS
POB
NOTES
COURSE # IN LEGAL DESCRIPTION 20' Wide Existing POC
SS Easement
TCE TEMPORARY CONSTRUCTION EASEMENT Per Doc #2001025055

SANITARY SEWER EASEMENT

POB POINT OF BEGINNING

POC POINT OF COMMENCEMENT
LEGEND
PREPARED BY:

PROPERTY LINE EXISTING SANITARY SEWER EASEMENT POLARIS LAND SURVEYING SANITARY SEWER EASEMENT CENTERLINE OF SS CARMEL VALLEY, CA ( 831-659-9564 LIMITS OF NEW SANITARY NEW TEMPORARY SCALE: 1" = 90' VIEW: D'ARRIGO SS-6 SEWER EASEMENT CONSTRUCTION EASEMENT DATE: 08-01-2024 JOB #20-129.02 FILE NAME: IWTF SS PLATS.DWG
EXHIBIT Violini
APN 020-021-003
OF EASEMENT #7 D'Arigo
APN 223-061-023
SANITARY SEWER EASEMENT WITHIN Mann
TRACT 3B IN THE RANCHO RINCON DE LA Doc. #2020000064 APN 223-061-006 Hibino
PUENTE DEL MONTE, CROSSING LANDS OF Doc #2020019826
APN 223-011-059
D'ARRIGO BROS CO. OF CALIFORNIA
DESCRIBED IN DOCUMENT 2020000064, Easement #7 Location
OFFICIAL RECORDS OF MONTEREY COUNTY Mann
APN 020-021-050
GONZALES, CALIFORNIA Lot5 Lot4 Lot3 Lot2 Lot 1
V.23 CITIES&TOWNS P.19
Kalmerine sireet

VICINITY MAP
Not to scale
LEGEND

NEW TEMPORARY CONSTRUCTION EASEMENT

CENTERLINE OF SS
Easement #7 PROPERTY LINE
New 15' ss
- SANITARY SEWER EASEMENT
Mann
APN 020-021-050 LIMITS OF NEW SANITARY
D'Arrigo SEWER EASEMENT
APN 223-061-023
Doc. #2020000064 COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION

EASEMENT

SS SANITARY SEWER EASEMENT

POC POINT OF COMMENCEMENT

POB POINT OF BEGINNING
New TCE -- PREPARED BY:

POLARIS LAND SURVEYING
POB CARMEL VALLEY, CA 1831-659-9564
POC SCALE: 1" = 60' VIEW: D'ARRIGO SS-8
DATE: 08-05-2024 JOB #20-129.02
FILE NAME: IWTF SS PLATS.DWG

EXHIBIT APN
OF EASEMENT #8 223-061-020
D'Arrigo
SANITARY SEWER EASEMENT WITHIN APN 223-061-023
Document #2020000064
TRACT 3B IN THE RANCHO RINCON DE LA
APN
PUENTE DEL MONTE, CROSSING LANDS OF 223-061-019 Easement #8 Location D'ARRIGO BROS CO. OF CALIFORNIA APN 223-061-002
DESCRIBED IN DOCUMENT 2020000064,
OFFICIAL RECORDS OF MONTEREY COUNTY APN Chunn Ranch LLC GONZALES, CALIFORNIA 223-011-028 3189-OR-1129
APN 223-011-032
- APN 223-061-014

VICINITY MAP
LEGEND Not to scale
D'Arrigo
APN 223-061-023 TEMPORARY CONSTRUCTION EASEMENT
Document #2020000064 CENTERLINE OF SS

PROPERTY LINE

SANITARY SEWER EASEMENT

LIMITS OF NEW SANITARY
Easement #8 SEWER EASEMENT
New TCE New 15' wide SS
POC
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION
City of Gonzales EASEMENT
APN 223-061-019
Doc. #2008026323 SANITARY SEWER EASEMENT
POB

POC POINT OF COMMENCEMENT

POB POINT OF BEGINNING
City of Gonzales
APN 223-061-002
City of Gonzales PREPARED BY:

Parcel G APN 223-061-014 POLARIS LAND SURVEYING
7-PM-135 Document #2003033616 CARMEL VALLEY, CA (831-659-9564 SCALE: 1" = 50' VIEW: D'ARRIGO SS-8
DATE: 08-05-2024 JOB #20-129.02
FILE NAME: IWTF SS PLATS.DWG

GRANT OF TEMPORARY EASEMENT
THIS GRANT OF TEMPORARY EASEMENT (this "Temporary
Easement) is made as of October 8, 2024, by D' Arrigo Bros. Co., of California ("Grantor"), for the benefit of the City of Gonzales, an incorporated City ("Grantee"), with reference to the

RECITALS
Grantor owns that certain real property commonly referred to as APN No. APN 223-061-023 (the "Property"), in the County of Monterey, State of California.

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.

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.

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 of ingress, 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 of its rights under this Temporary Easement.

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 negligence or willful misconduct of the Grantor. See Exhibit A for other exceptions, if any.

4. Compensation. The Grantee shall compensate the Grantor for the use of the 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 of 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). The parties acknowledge any construction delays or any other cause which results in Grantee failing to vacate the Temporary Easement Area by May 1, 2025 will require additional compensation to Grantor for the loss of use.

5. Performance of the Improvements. Time is of the 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 of the Property not included in 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 for its own farming and harvesting equipment and personnel. Grantee shall listen to any concerns expressed by Grantor's food safety professionals and take 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 of the 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.

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 of the Improvements has commenced, but prior to the completion of such Improvements, or 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 performance thereof 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 of this Temporary Easement.

8. Restoration of the Property. As part of the Improvements to the Property, Grantee shall, at its own cost and expense, restore the Property to a substantially similar condition 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 of 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 of termination. If Grantee has damaged any of Grantor's personal property, such as its 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 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 Grantee shall not be obligated to restore the Property as described herein.

Continuing Liability. Exceptasotherwise set forth in this Temporary 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 of this Temporary Easement and restoration of the Property.

Counterparts. This Temporary Easement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto have executed this Temporary Easement on the date first written above.

CITY OF GONZALES D'ARRIGO BROS. CO., OF CALIFORNIA
By: By:

Carmen Gill, City Manager John C. D'Arrigo, President/CEO

EXHIBIT A
Description of Work
The scope of work is as follows:

1. 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.

2. A minimum depth of 5 feet will be maintained to the top of buried manholes.

Not included:

1. Not Applicable
A-1

EXHIBIT B
Legal Description of the Easement Areas
B-1
Grant Deed of
Easement #9 - Temporary Construction Easement
APN 223-061-023
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 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 of said County, being particularly described as follows:

BEGINNING at the most southwesterly corner of said land shown on said map filed in Volume 36 of 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' 55"E, 854.75 feet; thence
5) N53° 50'42"E, 1,009.58 feet; thence
6) N53° 32' 26"E, 999.93 feet; thence
7) N53° 33' 28"E, 1,000.09 feet; thence
8) N53°.54'57"E, 1,000.08 feet; thence
9) N53° 56' 22"E, 906.91 feet; thence
10) N53° 28' 33"E, 999.94 feet; thence
11) N53° 39' 19"E, 842.30 feet; thence
12) N52° 54' 57"E, 170.05 feet; thence
13) S38° 28'11'E, 921.46 feet to a point on the northeasterly line of Lot 4 as said Lot is shown on Volume 23 of Cities and Towns at Page 19; thence along said northeasterly line 14) S52° 27' 02"W, 50.01 feet; thence departing said northeasterly line of said Lot 4 15) N38° 28' 11"W, 871.85 feet; thence
16) S52° 54' 57"W, 121.56 feet; thence
17) S53° 39'19"W, 570.37 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, 17.44 feet; thence
19) S53° 35' 51"W, 3,937.70 feet; thence
20) N40° 24'14"W, 10.00 feet; thence
21) S53° 34' 26"W, 2,256.28 feet; thence
B-2
Grant Deed of
Easement #9 - Temporary Construction Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales
22) S12° 08' 50"W, 835.04 feet; thence
23) S69° 40' 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, 38.50 feet; thence
26) N87° 04' 47"W, 99.66 feet, to the POINT OF BEGINNING Containing an area of 7.4 acres, more or less.

This legal description was prepared by:

Lyn a Kpoach
Lynn A. Kovach P.L.S. 5321 * *
Dated: August 5, 2024 • L. S. 557

SHAT OF CAI HOT
B-3
Grant Deed of
Easement #10 - Temporary Construction Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales

BEGINNING 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 Lot 1 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot 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 of said Lot 1
1) South 52° 27' 02"West, 39.70 feet; thence departing said northwesterly line crossing said tract 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, to the POINT OF BEGINNING Containing an area of 9,829 square feet, more or less.

This legal description was prepared by:
a Kovach KOVACH
Lynn A. Kovach P.L.S. 5321 *
Dated: August 5, 2024
B-4

EXHIBIT C
Site Plan of Easement Area
C-1

EXHIBIT
OF EASEMENT #9
TEMPORARY CONSTRUCTION EASEMENT WITHIN TRACT 3B

IN THE RANCHO RINCON DE LA PUENTE DEL MONTE,
CROSSING LANDS OF D'ARRIGO BROS CO. OF CALIFORNIA
DESCRIBED IN DOCUMENT 2020000064, APN 223-061-023
OFFICIAL RECORDS OF MONTEREY COUNTY Document #2020000064 Easement #9 location

GONZALES, CALIFORNIA

LEGEND APN
APN
PROPERTY LINE 223-011-032 223-011-036 APN
• - NEW TEMPORARY CONSTRUCTION EASEMENT 223-011-059

VICINITY MAP
LIMITS OF NEW TEMPORARY Not to scale

CONSTRUCTION EASEMENT
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION EASEMENT
D'Arrigo
APN 223-061-023 Easement #9 - New TCE
Document #2020000064
encumbering D'Arrigo.
• POR
Chunn Ranch LLC Violini Hibino
3189-OR-1129 2043-OR-1082 Doc #2020019826
APN 223-011-032 APN 223-011-036 APN 223-011-059
PREPARED BY:

POLARIS LAND SURVEYING

CARMEL VALLEY, CA
831-659-9564
SCALE: 1" = 800' VIEW: D'ARRGIO TCE DATE: 08-06-2024
FILE NAME: IWTF SS PLATS.DWG 20-129.02
EXHIBIT Violini
APN 020-021-003
OF EASEMENT #10 D'Amigo
TEMPORARY CONSTRUCTION EASEMENT WITHIN APN 223-061-023
Mann
TRACT 3B IN THE RANCHO RINCON DE LA Doc. #2020000064 APN 223-061-006 PUENTE DEL MONTE, CROSSING LANDS OF Hibino
Doc #2020019826
D'ARRIGO BROS CO. OF CALIFORNIA APN 223-011-059
DESCRIBED IN DOCUMENT 2020000064, Easement #10 Location

OFFICIAL RECORDS OF MONTEREY COUNTY
GONZALES, CALIFORNIA Mann
APN 020-021-050
Lot 5 Lot4 Lot3 Lot2 Lot 1
V.23 CITIES&TOWNS P. 19
Katherine Street

VICINITY MAP
Not to scale
LEGEND

NEW TEMPORARY CONSTRUCTION EASEMENT
D'Arrigo PROPERTY LINE
APN 223-061-023
Doc. #2020000064 SANITARY SEWER EASEMENT

LIMITS OF NEW TEMPORARY

CONSTRUCTION EASEMENT
Easement #10 - New TCE COURSE # IN LEGAL DESCRIPTION
encumbering D'Arrigo TEMPORARY CONSTRUCTION
Mann TCE
APN 020-021-050 EASEMENT
sS SANITARY SEWER EASEMENT

POC POINT OF COMMENCEMENT

POB POINT OF BEGINNING
New 15' wide SS PREPARED BY:
encumbering D'Arrigo POLARIS LAND SURVEYING
- POB CARMEL VALLEY, CA
831-659-9564
Avolem LLC Lot 1 SCALE: 1" = 80' VIEW: D'ARRGIO TCE-9
Doc. #2017013449 23-C&T-19 DATE: 08-05-2024 JOB#20-129.02 FILE NAME: IWTE SS PLATS.DWG
REVISED APPRAISAL OF:

CITY OF GONZALES/D'ARRIGO'S HEROLD RANCH

PARTIAL TAKE - GONZALES RIVER ROAD

GONZALES, MONTEREY COUNTY
APNs 020-011-001, 223-061-005 & -023
REQUESTED By: Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
APPRAISAL AS OF: May 8, 2024
APPRAISED BY: John W. Piini, MAI
Greg Piini, MAI
263 Lincoln Avenue
Salinas, CA 93901
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:

Upon your authorization, we conducted the investigations and analyses necessary to 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 Assessor's Parcel Numbers (APNs) 020-011-001, 223-061-005, and -023. The ranch has a gross area of 560.4+ 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- 061-005) that are located within the city limits of Gonzales and zoned industrial.

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 APN 223-061-023.

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 15.0 feet and encumber a total area of 25,411† square feet. The SSEs run adjacent to several existing sewer easements. The TCEs vary in width from about 15 to 50 feet and run through the subject property, following the proposed and existing SSES.

The TCEs encumber approximately 7.67+ acres of land for a period of six months, commencing on November 1, 2024.

To farm the property outside the TCEs, a new farm road will likely be necessary adjacent to 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 a farming use, additional time will 263 Lincoln Ave., Salinas, CA 93901 | TEL 831-422-5327 | FAX 831-422-8280 | PiiniRealty.com Mr. Patrick Dobbins August 16, 2024
Re: Appraisal Report - D'Arrigo Brothers Page ii
be required to rip, till and prepare these soils. An additional six months are added to the TCEs and the land adjacent to the TCEs to account for this loss.

Based on the inspection of the property and the investigations and analyses undertaken, we have formed the opinion that as of May 8, 2024, and subject to the assumptions and limiting conditions set forth in this report, the value conclusions are as follows:

Fair market value of the part taken as part of the whole $20,563 Damages & special benefits
Damages $0
Less: Special benefits $0
Subtotal $0
Value of the TCE $21,625
Total value of the take
$42,188
The appraisal report that follows consists of 50 pages and sets forth the 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.

Respectfully submitted,
Yoda Wifein
Certified General Real Estate Appraiser Certified General Real Estate Appraiser State of California, BREA No. AG005214 State of California, BREA No. AG044270

TABLE OF CONTENTS
Transmittal Letter .....i
Table of Contents ......I
Introduction.... .... 5
Identification ..5
Hypothetical Condition. ...5
Extraordinary Assumption ...5
Purpose of the Appraisal ....6
Title. ...7
Property History ..7
Property Rights Appraised ..7
Client of the Appraisal .7
Intended Users 7
Intended Use of the Appraisal.. .... 7
Effective Date of the Appraisal 8
Date of Report 8
Report Format ..8
Exposure Time .. ... 8
Land Acreage Definitions ....8
Scope of Work .....9
Regional Description…........ ...11
Regional Map ..11
Location Map. ..11
Monterey County. ..12
Gonzales ...15
Property Description. ..16
Aerial Photograph. ..16
Assessor's Parcel Map .16
Subject Photographs. ..17
Appraisal Report - D'Arrigo Brothers Page iii
Location ... ....18
Land Area. ...18
Access..
...19
Irrigation Water.. .. 19
Building Improvements ...19
Hazards ...20
Assessed Valuation & Taxes ....20
Property Rights ....21
Land Use Policies ..... ...22
Highest & Best Use ..23
Valuation Comments..
.... 23
Fair Market Value of the property before the take.. ...24 Fair Market Value of the Part Taken ....40
Fair Market Value of the Remainder as Part of the Whole. ... 42 Fair Market Value of the Remainder Before Considering Special Benefits ...42 Fair Market Value of the Remainder Considering Special Benefits... ...42 Fair Market Value of the Temporary Construction Easement... ...43 Compensation Summary. ..44
Certifications.. ...45
Limiting Conditions ...47
Addendum
Legal Description and Maps of the Permanent and Temporary Easements Qualificatons of the Appraisers
Appraisal Report - D'Arrigo Brothers Page iv

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 and is located to the west of Gonzales, Monterey County, California. The entire ranch is 560.4+ acres and consists of Monterey County Assessor Parcel Numbers 020-011-001, 223-061-005 and -023.

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 City of Gonzales, are zoned Industrial, and are not affected by the proposed easements.

Therefore, the portion of the Herold Ranch being appraised is identified as APN 223-061-021, which has a gross land area of 538.8t acres.

The partial-take consists of i) five Sanitary Sewer Easements (SSEs) that encumber a total of approximately 25,411+ square feet, and il) two Temporary Construction Easement (TCE) that encumber approximately

7.67t acres. The public agency involved in this taking is the City of Gonzales as part of a project referred to as the Gonzales Industrial Wastewater Recycling Facility (IWRF) project.

HYPOTHETICAL CONDITION
This appraisal is predicated on the hypothetical condition that the portion of the Herold Ranch being appraised is a separate legal lot that can be sold separately from the industrial-zone lands that are omitted from this analysis.

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
Irriqation Improvements
Irrigation water for the D'Arrigo Ranch is provided from underground groundwater 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 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 Page 5
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 on the extraordinary assumption that the proposed conveyance line will 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 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-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. ?

PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the "fair market value" of the 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 the take;

2. the fair market value of the part taken;

3. the fair market value of the remainder as part of the whole;

4. the fair market value of the remainder before considering special benefits; and

5. the fair market value of the remainder considering special benefits.

Fair Market Value Defined
For the purpose of this appraisal, fair market value is defined as follows:

The fair market value of 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, and a buyer, being ready, willing, and able to buy but under no particular 2 lIbid. p. 4.

Appraisal Report - D'Arrigo Brothers Page 6
necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.3 TITLE
According to the Monterey County Assessor's Office, title is vested as follows:

D'Arrigo Bros Co.

PROPERTY HISTORY
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 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.

PROPERTY RIGHTS APPRAISED
The property rights appraised is the fee simple estate.

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. "

CLIENT OF THE APPRAISAL
The client of this appraisal is the City of Gonzales.

INTENDED USERS
The 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 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.
3 California Code of Civil Procedure - CCP §1263.320 (Amended by Stats. 1992, Ch. 7, Sec. 2. Effective January 1, - Dictionary of Real Estate Appraisal 6'' dition. Appraisal Institute, 2015, p. 90.

Appraisal Report - D'Arrigo Brothers Page 7

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
This appraisal assignment was conducted in May and June of 2024.

REPORT FORMAT
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
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 hypothetical consummation of a sale at market value on the effective date of the appraisal.S
For 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 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 appeal and increase their risk of ownership.

The Herold Ranch 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 considered reasonable applied in this analysis.

LAND ACREAGE DEFINITIONS
Several acreage classifications are used within this appraisal report and are defined as follows:
5lbid. p. 83.

Appraisal Report - D'Arrigo Brothers Page 8
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
The non-usable farm acreage is the land that does not provide a utility to the property.

Usable Farm Acreage
The usable farming acreage is the total acreage that provides a utility to the property and includes the net crop acreage, 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 is the area growers utilize for measuring crop production and growing costs.

Leased Acreage
The leased acreage is the acreage stated in the lease that is agreed upon between the lessor and lessee.

SCOPE OF WORK
We appraised the subject easements for the City of Gonzales in May of 2024. This report is an update to the May 2024 report to only reflect a change in the take areas. For the May 2024 assignment, the property was inspected on May 8, 2024. The 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 maps, flood maps, aerial photographs and zoning maps of the property.

Piini Realty also brokered the 2020 sale of the Herold Ranch. As part of this assignment, the brokerage file was reviewed, and pertinent data has been incorporated into this assignment.

The gross land area of 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 Surveying, copies of which are included in the addendum of this report.

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 and LoopNet, real estate appraisers, and brokers.

Appraisal Report - D'Arrigo Brothers Page 9
The results of the investigations and the analyses conducted are presented in this appraisal report, and were prepared by John Plini, MAI, and Greg Piini, MAI.

Appraisal Report - D'Arrigo Brothers Page 10

REGIONAL DESCRIPTION

REGIONAL MAP
Ridgerari
Tres Pino
Prunedale
Castrovile
Bolss Knolls
Boronida Mercey Ho
Atarina
Salines
Springtonn
Chualer
Molus
Subject Camphora
Soledad
Fort Romie
Metzi
Greenfield
(to» Cebum
Esa
Google Bartli King City
Weiby
Pife Canyon

LOCATION MAP
Gonzales City Limits Boundary
Subject Property
Proposed Conveyance Line
Future Industrial Wastewater Recycling Facility
Gonzales
Appraisal Report - D'Arrigo Brothers Page 11

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, on the east by San Benito, Kings, and Fresno Counties and on the west is the Pacific Ocean.

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 or 2,127,360₺ acres.

About 439,000 people currently reside in Monterey County as of the 2020 Census, which is a 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 to 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 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 and Monterey are tourist destinations for the northwesterly portion. To the south of the Monterey Peninsula is the world-renowned Big Sur Coast. On the eastern side of the county lies the Salinas Valley, one of the chief vegetable-producing regions in the United States.

Salinas Valley
The Salinas Valley is a fertile agricultural region bounded to the east by the Gabilan Mountain Range and to the west by the Santa Lucia Mountain Range. The valley begins at San Ardo and widens and stretches approximately 100 miles to the Monterey Bay, near Castroville.

This valley is one of the premier fresh vegetable growing regions in the country and a majority of 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 nicknamed "America's Salad Bowl."
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 on the valley floor are, for the most part, fertile clay and loamy soils that are well suited for growing a variety of fresh vegetable crops. Along the foothills of the Gabilan Appraisal Report - D'Arrigo Brothers Page 12
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 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 of farm management as compared to the soils on the valley floor.

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 of the Salinas Valley as compared to the farmland in 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 the food service segment of the produce industry which has increased the demand for leafy green vegetables such as spinach and leaf lettuces that have shorter growing periods.

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 highertoday than what existed a 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 rising inflation and interest rates have made for challenging times for the produce industry.

Appraisal Report - D'Arrigo Brothers Page 13
Salinas Valley Water
Water for the Salinas Valley is derived mainly

EXPLANATION
Beine Viday Groundester Baer
through groundwater wells penetrating 100
Other Groundedle Subteri
to 1,700 feet into the Salinas Valley Water
Basin. The Salinas Valley Basin has a single
common aquifer that is divided into six crabay Aquale
engley Areo
hydrologically interconnected subbasins
Upper Valey Aguer
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 map 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
Reservoir (constructed 1963). These natural and man-made sources feed the basins; however, it is not enough. The Salinas Valley, especially at the north end, extracts more water than is replenished, resulting in seawater intrusion and a shrinking water supply amongst the older shallow wells.

Over drafting of groundwater is not unique to the Salinas Valley but is occurring throughout California. As a result, 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. In the Salinas Valley, the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) is a joint powers authority that was established to fulfill the requirements of SGMA.

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) are in an overdraft condition, while the two southern basins (Forebay Aquifer and Upper Valley Aquifer) are in a balanced state.

The Herold Ranch is within the 180/400 Foot Aquifer.

Appraisal Report - D'Arrigo Brothers Page 14
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 of 8,439 people. Over the past several decades, the town has grown as its proximity to Salinas and its lower relative price of housing has brought an influx of commuter-based residents; however, the town remains an agricultural-based community. 6 U.S. Census Bureau. 2022 Population Estimate Program (PEP).

Appraisal Report - D'Arrigo Brothers Page 15

PROPERTY DESCRIPTION

AERIAL PHOTOGRAPH
-APN D20-011-001
APN 273 061 005
APN 223-061-023
Gonzales River
Google Earth

ASSESSOR'S PARCEL MAP

TAX CODF ARFA COUNTY OF MONTEREY
76-01 ASSESSOR'S MAP
BOOK 223, PAGE 06
SCALE: 1 8S. * 800 FT.

Herold Ranch - Portion Appraised
Herold Ranch - Portion Omitted
061
Ne theo c 18s87
3 23)
1071
PTH
1 GONZALES RIVER ROAD 20/2

RINCON DE LA PUENTE DEL MONTE RANCHO
Appraisal Report - D'Arrigo Brothers Page 16

SUBJECT PHOTOGRAPHS
Easterly view of farmland near windmills
and general location of proposed TCE
Easterly view of the SE boundary of
Herold Ranch and location of 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

LOCATION
The Herold Ranch is located to the west of Gonzales, approximately 12½ miles to the south of Salinas and 8½ miles to the north of Soledad.

This location is within an intensive farming district of 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 cropped annually for a variety of fresh vegetable crops.

The adjoining land uses include industrial within the city limits of Gonzales to the east, irrigated row crops to the north and south, and the sewage treatment plant to the west.

Most of 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 boundary.

LAND AREA
The portion of the Herold Ranch that is being appraised has a gross land area of 538.8t acres. This acreage extends from the Southern Pacific Railroad (SPRR) and Gonzales city limits boundary to the Gonzales sewer treatment plant that lies to the east of the Salinas River.

The ranch is situated on two benches with 408.0t acres on an upper bench, 130.0t acres on a lower bench, and 0.8+ acres located on the bank between the two benches that is excluded from the usable farm acreage. The gross and usable acres are summarized as follows:

Land Area Summary
Description Acres
Usable acres
Upper bench acreage 408.0
Lower bench acreage 130.0
Usable farm acres 538.0
Less: Acreage within bank 0.8
Gross acres 538.8
Soils & Topography
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 0 to 2% slopes.

Appraisal Report - D'Arrigo Brothers Page 18
Soil Summary
Approx Approx %
Soil Symbol Soil Name Slope Class Acres of Ranch
CnA Cropley silty clay 0 to 2% 2 408.0 75.8%
Pf Pico fine sandy loam 0 to 2% 1 100.0 18.6%
MnA Mocho silt loam 0 to 2% 1 30.0

5.6%
Totals 538.0 100.0%
The Cropley silty clay soil is a well-drained soil that has a silty clay texture. The soil is 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 a prime fertile soil.

The Pico fine sandy loam and Mocho silt loam are sandier soils that are rated Class 1. These are well 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.

The lower bench is accessed by Short Road, a 20-foot right-of-way that extends from Gonzales River Road to the Gonzales sewage treatment facility.

IRRIGATION WATER
Five irrigation wells provide irrigation water to the ranch. The wells provide a combined capacity of 5,550+ gallons per minute (10.3 gallons per usable acre). Water is distributed through underground high- pressure lines.

BUILDING IMPROVEMENTS
There are two building yards. One is located within the industrially-zoned lands and improved with a farm labor camp; however, because the industrially-zoned lands are omitted from this analysis, this farm labor camp is also omitted.

The second building yard is located at the east end of the ranch, next to the city limits boundary. This yard is improved with a barn and an equipment shed that were in the process of being restored as of the valuation date. The building improvements are not affected by the take and the contributory value is not considered in this appraisal.

Appraisal Report - D'Arrigo Brothers Page 19
Wind Turbines
There are two wind turbines located in the middle of the ranch; however, both of these are located on small parcels owned in fee by the City of Gonzales and are not part of this ranch.

HAZARDS
Flood Hazard
The ranch is 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 1.5+ miles west of the 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 as follows:

Assessed Valuation & Taxes
Assessed Values 2023-2024 Taxes
Improvement Countywide &
APN Land Value Value Total Value Direct Charges Agency Taxes Total Taxes 223-061-023 $21.013.005 $624,240 $21.637,245 $21,552.28 $247,395.26 $268,947,54 Total $21,013,005 $624,240 $21,637,245 $21,552.28 _$247,395.26 $268,947.54 Average tax rate 1.14%
Average per usable acre $40,218 $499.90
Farmland Security Zone Contract
The ranch is subject to a Farmland Security Zone (FSZ) Land Conservation Contracts (LCC) with the County of 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.

A standard LCC 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, Appraisal Report - D'Arrigo Brothers Page 20
the assessed valuation is based on 65% of the California Proposition 13 valuation or Williamson valuation, whichever is less. All land conservation contracts automatically renew annually for an additional year, unless either party files a "notice of non-renewal".

The assessed land valuation of $21,013,005 is the restricted FSZ value. The Proposition 13 land value is $34,733,566.

PROPERTY RIGHTS
A preliminary title report was not provided; however, we are aware of a 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 (Reel 3159

Page 897 ends

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.
7 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 that the assessed value could increase, unless the property has a change of ownership.

Appraisal Report- D'Arrigo Brothers Page 21
Property Boundary
Existing Sewer Easements

12.5'/15'/20' Existing Easement Width
Note: This segment consists of a 15-foot easement centered on the property line, plus a 5-foot easement to the NE of the 15-foot easement for a total sewer easement width of 12.5 feet on the 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 to the west.

The ranch is designated as "Agricultural" by the Monterey County General Plan. Agricultural lands will fall within the three land use categories, and the Herold 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.

Consistent with the General Plan, the Herold Ranch is zoned Farmlands (F-40). The minimum parcel size requirement for creating a new parcel is 40 acres.

Appraisal Report - D'Arrigo Brothers Page 22

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.®
As If Vacant
The property is located within an intensive farming district of the Salinas Valley where the historical use of the subject property and adjoining properties that are outside of the city limits boundary are dedicated to an irrigated row crop agricultural use.

Land use policies are also oriented toward an agricultural use, and the existing agricultural conservation easement would preclude the conversion of the farmland to a non-agricultural use.

Therefore, the highest and best use of the property is agriculture and the most probable agricultural use is irrigated row crop farming of fresh vegetables.

As Improved
The irrigation wells and pipelines support the highest and best use of the land and their value is included in the underlying land value.

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 the highest and best use of the land.

VALUATION COMMENTS
The purpose of the appraisal is 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) the fair market value of the property before the take; 2) the fair market value of the part taken;
3) the fair market value of the remainder as part of the whole; 4) the fair market value of the remainder before considering special benefits; and 5) the fair market value of the remainder considering special benefits. 8 Dictionary of Real Estate Appraisal - 6th Edition. (Chicago: Appraisal Institute, 2015) p. 109 Appraisal Report - D'Arrigo Brothers Page 23

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 are the two common methods utilized in the valuation of Salinas Valley farmland. In applying these appraisal methods, the components of value include the land and the land improvements, which consist of the irrigation wells, pumping plants and irrigation pipeline. In the Salinas Valley, the contributory value of the land improvements is included in the land value and the common unit of measurement for comparison purposes is the price per usable acre.

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 comparable, competitive properties.

The income approach is applicable as Salinas Valley farmland is commonly rented and there is a very active 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 value, provided the amount of risk remains constant.

The most common income valuation technique is the direct capitalization method, which employs the 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 property's economic rental value and the price to be paid.

SALES COMPARISON APPROACH
In applying the sales comparison approach, the following sales are judged to be the most comparable and indicative of value:

Appraisal Report - D'Arrigo Brothers Page 24
Summary of Farmland Sales
Sale number 1 2 4 5 6 7 8
Ranch name Wing Wimer Harney Vosti Nielson Herold Breschini Hunter Sale date 11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 1/3/2020 10/27/2023 6/30/2023 Location Chualar Cyn Rd Highway 101 Spence Rd River Rd Old Stage Rd Alta Street Hwy 101 Hunter Lane Nearest city Chualar Chualar Chualar Gonzales Salinas Gonzales Soledad Salinas Grantor Massa Wimer Clayton Vosti C. M. Nielsen Ptn Meyers Breschini Duckworth Grantee Yellow Juliet Gill & Hitcock Springbrook D'Arrigo C. M. Nielsen Ptn D'Arrigo Caprara Rocha Gross acreage 305.7 138.6 147.0 95.4 188.5 560.4 179.7 82.8 Non farmable acreage 0.0 5.0 1.0 0.0 0.0 0.8 50.7 0.0
Other land use acreage 2.0 10 216
Usable and irrigated farm acreage 305.7 133.6 146.0 95.4 187.5 538.0 129.0 82.8 Sale price $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 usable acre (land & impr) $60,500 $61,200 $64,700 $66,000 $68,700 $77,100 $77,500 $87,000 Sales Location Map
Google Earth.

Appraisal Report - D'Arrigo Brothers Page 25
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
row crop farming.

The property has a level topography with
Placentia sandy loam and Chualar loam soils.

These are decomposed granite (DG) soils that
are inferior to those on the 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 with a good water quality.

The property was not on 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 a three-year term at a rental rate that is confidential. The contract rent, though, is near market, which in this area varies from about $2,200 to $2,600 per acre, including property taxes. The property sold for $18,500,000, or $60,500 per acre.

Sale 2: Wimer Ranch, Chualar
The Wimer Ranch is located on 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 access to 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
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 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
in good 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 the farmland which equates to a rounded land value of $60,600 per usable acre.

Sale 3: Harney Ranch, Chualar
The Harney Ranch is located 4.2 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
Road.

The property has a level terrain, and the soil is
Chualar loam with a 0 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
and for the buildings.

The property had been leased to Tanimura and Antle for several decades. At the time of sale, the property was farmed in strawberries and vegetables. According to the tenant, during the 2021 and 2022 seasons this ranch suffered heavy losses to their late summer and fall lettuce crops because of the INVS virus.

At the time of sale, the property was subject to a three-year Lease with one year remaining and one 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 - D'Arrigo Brothers Page 27
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 new SPRR crossing, which would require SPRR's permission.

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. Building improvements include one older farmhouse, two old barns and two older farm labor houses. The improvements were in poor condition and did not contribute an added value.

The property was listed for sale with Piini Realty; however, at the request of 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 2020.

Sale 5: Nielson Ranch, Salinas
The Nielsen Ranch is located about 5 miles
south of Salinas on the east side of the Salinas
Valley, adjacent to the base of the Gabilan
Mountain Range.

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 Page 28
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 at 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 sand filters were installed to mitigate the sand clogging the sprinklers and drip emitters. A 1950 well, which was equipped with a 300hp diesel motor, was a backup well though it was relatively high in salts.

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 parcel that was improved with an older single-family dwelling that was in 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 $65,000 a year, which was estimated to contribute approximately $400,000 in value based on the present value of the income for 10 years at 10%.

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 personal property from the residential property.

The final sale price for the farmland and residential parcel was $13,371,650, allocated as follows:

Sale Allocation
Description Acres Price Price/Acre
Farmland 187.5 $12,876,650 $68,675
Residential parcel 1.0 $495,000 n/a
Totals 188.5 $13,371,650 $70,937
Appraisal Report - D'Arrigo Brothers Page 29
Sale 6: Herold Ranch, Gonzales
Sale 6 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 $41,500,000
Less: Buyer allocation to industrially zoned lands and farm labor camp $5,000,000 Farmland allocation $36,500,000
Usable farm acres 538.00
Price per usable acre (rounded) $67,800
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
in the general area of the sale and agricultural
rents vary from about $1,500 to $1,800 per
acre, including property taxes.

This property has a gross land area of about 180 acres and extends from Highway 101 to 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, 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 in the immediate area. The property sold 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 - D'Arrigo Brothers Page 30
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 Highway 68 to
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 District, farmland turnovers in the Spreckels District are rare.

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 256 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 for employee housing. In the as-is condition of the dwelling, it did not contribute an added value nor a cost to remove.

The property was leased for a three-year term with a termination date of October 31, 2025. The gross rent obligation of the tenant was $3,600 per acre.

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 30th for $87,000 per acre. While the buyer is a local strawberry grower, they intend to continue leasing the property to the existing tenant as their motivation is for a long-term passive investment.

The buyers intend to enter the property into a Farmland Security Zone contract and spend about $320,000 on capital improvements for a new well resulting in a 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 about 3.5% in Year 3.

Appraisal Report - D'Arrigo Brothers Page 31
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 the sales to account for this easement on the subject property.

Sale 5 involved a buyout of an existing partnership 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 sale price as a property rights adjustment.

The remaining sales involved the sale of a 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 purchase price. A property rights adjustment is not warranted.

Financing Terms
The sales were either involved cash sales or conventional financing. A financing terms adjustment is not warranted.

Conditions of Sale
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 $223,350 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, 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 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) indicates the following:

Appraisal Report - D'Arrigo Brothers Page 32
Market Conditions Adjustment
Sale number 1 to 3 Difference
Ranch name Wing Harney
Area Chualar Chualar
Sale date 11/2/2020 9/5/2023 2.84
Usable farm acreage 305.7 146.0
Farmland allocation per acre $60,517 $64,726
Agricultural adjustment 0.0% 0.0%
Adjusted farmland alloc/acre $60,517 $64,726 7.0%
Annual % change 2.4%
Based in part on the above an annual time adjustment of 2.5% is applied to the 2020 to 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 to 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 the 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 1 to 4 and
Ranch name Wing Vosti Herold
Area Chualar Gonzales Gonzales
Sale date 11/2/2020 10/27/2020 1/3/2020
Usable farm acreage 305.7 95.4 538.0
Farmland allocation per acre $60,500 $66,038 $67,844
[indicated % difference 9.2% 12.1%
Appraisal Report - D'Arrigo Brothers Page 33
Sale Comparison #2
Sale number 8 to 4 and 6
Ranch name Hunter Vosti Herold
Area Salinas Gonzales Gonzales
Sale date 6/30/2023 10/27/2020 1/3/2020
Usable farm acreage 82.8 95.4 538.0
Farmland allocation per acre $90,876 $66,038 $67,844
Market conditions adjustment 0.0% 7.9% 10.0%
Adjusted price per acre $90,876 $71,284 $74,619
indicated% difference -21.6% -17.9%
Size
Generally, there is an inverse relationship in unit prices based on size; however, in the Salinas Valley there is generally 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 a larger property. Therefore, a size adjustment is not applied to these sales.

Sale Adjustment Summary
The following tables summarize the adjustments applied to the sales.

Adjustment Summary
Sale number 1 2 4 5 8
Ranch name Wing Wimer Harney Vosti
Sale date 11/2/2020 9/30/2021 9/5/2023 10/27/2020
Location Chualar Cyn Rd Highway 101 Spence Rd River Rd
Nearest city Chualar Chualar Chualar Gonzales
Usablefarm acres 305.7 133.6 146.0 95.4 187.5 538.0 82.8 Sale price $18,500,000 $8,174,000 $9,450,000 $6,300,000 Non-farmland allocations $74.000 se
Farmland allocation $18,500,000 $8,248,000 $9,450,000 $6,300,000 Property rights adjustment so $0 $D so
Adjusted sale price $18,500,000 $8,248,000 $9,450,000 $6,300,000 Expenditures after sale se
Adjusted sale price $18,500,000 $8,248,000 $9,450,000 $6,300,000 Adjusted priceper usable acre $60,517 $61,718 $64,726 $66,038 Market conditions adj. @2.5% 7.9% 5.6% 0.0% 7.9% 0.0% 10.0% Adjusted priceper usable acre $65,304 $65,190 $64,726 $71,284 Africultural adjustment 10.0% 7.5% 10.0% 0.0% 7.5% 0.0% Adjusted price per usable acre ind $71,800 $70,100 $71,200 $71,300 Appraisal Report - D'Arrigo Brothers Page 34
The above table provides an adjusted range of $70,000 to $74,600 per usable acre. Sale 6, which is the prior sale of the subject property, provides the highest indication, but considering the other sales of this analysis, 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 Herold Ranch from the sales comparison approach.

Hence,
Land area (acres) 538.0
Land value per usable acre $71,500
Land value from the sales comparison approach $38,467,000 Appraisal Report - D'Arrigo Brothers Page 35

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 NOl 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 rental rates at or near the fair market level.

Gross Market Rent
The first step in applying the income approach requires estimating the market rental value. Market rental value is defined as:

The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (Tl's).º
In the Salinas Valley, most leases are written on a net basis with the 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 "gross rent" paid by the tenant, which consists of the net rent and property taxes.

In estimating the gross market rental value, we conducted an investigation into agricultural rents involving irrigated farmland located in the central portion of the Salinas Valley. The general area of this market rent investigation is depicted below:
° Dictionary of Real Estate Appraisal - 6th Edition, Appraisal Institute; p. 140.

Appraisal Report - D'Arrigo Brothers Page 36
pogle 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:

Summary of Comparable Farm Leases Soil Summary 2024 Season Lease No. Area Lease Term Sandy/Clay Loams/DGs Gross Rent 1 Gonzales to Soledad 2023-2025 0%/100%/0% $2,260
2 Chualar to Gonzales 2022-2025 0%/100%/0% $2,410
Gonzales to Soledad 2024-2027 17%/81%/2% 52,424
4 Chualar to Gonzales 2022-2025 0%/100%/0% $2,430
5 Chualar to Gonzales 2023-2026 0%/100%/0% $2,500
6 Gonzales to Soledad 2021-2024 25%/75%/0% $2,515
7 Chualar to Gonzales 2023-2026 0%/100%/0% $2,560
8 Gonzales to Soledad 2023-2026 5%/90%/5% $2,600
9 Gonzales to Soledad 2021-2025 25%/75%/0% $2,615
10 Salinas to Chualar 2023-2026 0%/0%/100% $2,630
11 Chualar to Gonzales 2021-2024 0%/100%/0% $2,840
Appraisal Report - D'Arrigo Brothers Page 37
The above table provides an overall range of $2,260 to $2,840 per acre. Within this range, Leases 2 to 10 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 be expected, and a gross rent of $2,600 per acre is concluded as the market rent of the Herold Ranch.

Expenses
Property taxes represent the primary expense item in this valuation. As noted previously, the farmland is subject to a Farmland Security Zone Land Conservation Contract. In the event of a sale, the re-assessment under California's Proposition 13 property tax code would be 65% of the lesser of the property's Proposition 13 value or Williamson value.

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 to the capitalization rate.

Capitalization Rate
In 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 of Farmland Capitalization Rates
Sale number 1 2 3 4 5 6 8
Ranch name Wing Wimer Harney Vosti Nielson Hunter
Sale date 11/2/2020 9/30/2021 9/5/2023 10/27/2020 9/24/2021 6/30/2023 Location Chualar Cyn Rd Highway 101 Spence Rd River Rd Old Stage Rd Hunter Lane Usable farm acres 305.7 133.6 146.0 95.4 187.5 82.8
Farmland allocation $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,381,650 $7,200,000 Expenditures after sale $0 $0 $223,350 $0 $320.000
Adjusted farmland allocation $18,500,000 $8,248,000 $9,450,000 $6,300,000 $12,605,000 $7,520,000 Farmland allocation per acre $60,500 $61,700 $64,700 $66,000 $67,200 $90,900 Gross income per acre $2,465 $2,600 $2,485 $2,500 $2,600 $3,600 Property tax estimate upon sale $465 $475 $490 $750 $250 $505 $715 Net income per acre $2,000 $2,125 $1,995 $1,750 $2,350 $1,995 $2,885 Capitalization rate 3.3% 3.4% 3.1% 2.7% 3.5% 2.9%

3.2%
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 for industrial development and a 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 the subject property due to its soils, location, and water quality. A rate toward the lower end of this range is appropriate, and a rate of 3.0% is applied. Hence,
Appraisal Report - D'Arrigo Brothers Page 38
Usable acres 538.0
Gross rent per usable acre $2,600
Gross annual rent $1,398,800
Less: Direct property taxes $21,552
Net annual income before % based taxes $1,377,248
Capitalization rate 3.00%
Add: FSZ adjusted tax rate 1.14% × 65.0% = 0.74%
Weighted capitalization rate 3.74%
Capitalized value $36,793,374
Rounded to $36,790,000
Value per usable acre $68,400

FAIR MARKET VALUE CONCLUSION
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, the fair market value of the Herold Ranch before the take is concluded as follows:

Value indicated from the sales comparison approach $38,467,000 Value indicated from the income approach $36,790,000
Fair market value of the property before the take $37,929,000 Fair value value per acre (rounded) $70,500
Appraisal Report - D'Arrigo Brothers Page 39

FAIR MARKET VALUE OF THE PART TAKEN
As per the legal descriptions of the proposed takes, which are included in the addendum, the parts taken are depicted as follows:

Property Boundary
Proposed SSEs (Approx)
Proposed TCEs (Approx)
9#355
The five permanent SSEs are 5.0 and 15.0 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 in the addendum, the SSEs encumber a total of 25,411t 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 TCEs are temporary easements that run along the existing and proposed sewer easements as depicted above. The width of the easements varies from about 15 to 50 feet. According to the legal description included in the addendum, the TCE encumbers a total of 7.67= acres. However, this includes lands within the existing and proposed SSEs. Omitting the land within the proposed SSEs, the TCE encumbers approximately 6.86t acres.

The proposed easements are summarized as follows:

Appraisal Report - D'Arrigo Brothers Page 40
Take Summary
Description Square Feet Acres
Sanitary Sewer Easements (SSE)
SSE #3 2,428
SSE #4 3,390
SSE #6
13,318
SSE #7 3,737
SSE #8 2,538
Total SSE 25,411 0.58
Temporary Contruction Easement (TCE)
TCE #9 324,086
TCE #10 2,829
Subtotal 333,915
Less: Area within proposed SSES 25,411
Total TCE area outside of existing and proposed SSES 308,504 6.86 EASEMENTS #3, 4, 6, 7 & 8 (SANITARY SEWER EASEMENTS)
The fair market value of the property before the 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 area for internal roads and farming. The value of the SSEs is concluded at 50% of the fee value.

Therefore, the value of the part taken is calculated as follows:

Take Area Value Value of the
Description (Square Feet) per Acre Part Taken
SSE #3 2,428 $35,250 $1,965
SSE #4 3,390 $35,250 $2,743
SSE #6 13,318 $35,250 $10,777
SSE #7 3,737 $35,250 $3,024
SSE #8 2,538 $35,250 $2,054
Fair market value of the part taken $20,563
EASEMENTS #9 & 10 (TEMPORARY CONSTRUCTION EASEMENTS)
The value of the TCEs is considered later as it is only a temporary taking.

Appraisal Report - D'Arrigo Brothers Page 41

FAIR MARKET VALUE OF THE PART TAKEN
The fair market value of the part taken is concluded as follows:

Fair market value of the part taken $20,563

FAIR MARKET VALUE OF THE REMAINDER AS PART OF THE WHOLE The fair market value of the remainder as part of the whole is the fair market value of the property before the take less the fair market value of the part taken, which is calculated as follows:

Fair market value of the property before the take $37,929,000 Fair market value of the part taken $20,563
Fair market value of the remainder as part of the whole $37,908,437

FAIR MARKET VALUE OF THE REMAINDER BEFORE CONSIDERING SPECIAL BENEFITS There are no damages associated with the 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 of the remainder as part of the whole $37,908,437 Damages $0
Fair market value of the remainder after the take before considering special benefits $37,908,437

FAIR MARKET VALUE OF THE REMAINDER CONSIDERING SPECIAL BENEFITS The project does not provide special benefits. Therefore, the fair market value of the remainder after the take and after considering special benefits is as follows:

Fair market value of the remainder after the take before considering special benefits $37,908,437 Special benefits $0
Fair market value of the remainder after the take after considering special benefits $37,908,437 Appraisal Report - D'Arrigo Brothers Page 42

FAIR MARKET VALUE OF THE TEMPORARY CONSTRUCTION EASEMENT The proposed TCE encumbers approximately 6.86t acres of the subject property, excluding the land areas within the proposed SSEs. The easement would encumber the property for 6 months, commencing November 1, 2024 and continuing through April 30, 2025.

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 TCE is concluded as follows:

TCE land area (acres), excluding the land area within existing and proposed SSEs 6.86 Gross annual rent per acre $2,600
Annual rent for the TCE $17,827
Estimated duration of the TCE (months) 6
Fair market value of the TCE $8,914|
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 take in approximately 2.92t acres.

The 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 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 6 months is applied to these lands to provide sufficient time to rip, till and prepare the soils for a farming use.

Compacted land areas (acres)
TCE land area 6.86
Additional land area adjacent to the TCE 2.92
Total compacted land areas 9.78
Gross annual rent per acre $2,600
Annual rent for the compacted land areas $25,422
Estimated duration to restore compacted areas to farming use (months) 6 Additional value for TCE-related compacted lands $12,711 Appraisal Report - D'Arrigo Brothers Page 43
Thus, the total compensation for the TCE is as follows:

Fair market value of the TCE $8,914
Additonal value for the TCE-related compacted lands $12,711 Total fair market value of the TCE $21,625

COMPENSATION SUMMARY
Fair market value of the part taken as part of the whole $20,563 Damages & special benefits
Damages $0
Less: Special benefits $0
Subtotal $0
Value of the TCE $21,625
Total value of the take $42,188
Appraisal Report - D'Arrigo Brothers Page 44

CERTIFICATION
I certify 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, opinions and conclusions.

I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.

I was involved with brokering the 2020 sale of 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 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.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

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 Appraisal Institute.
• I have 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 certification.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the continuing education program for Designated members of the Appraisal Institute.
lohn W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
Appraisal Report - D'Arrigo Brothers Page 45

CERTIFICATION
I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.

I was 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.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

I have 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 certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, Greg Piini, MAI has completed the continuing education program for Designated members of the Appraisal Institute.

Ория.

Greg Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG044270
Appraisal Report - D'Arrigo Brothers Page 46
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LIMITING CONDITIONS
Assumptions and Limitations of Appraisal
This appraisal is for no purpose other than property valuation, and 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 to the accuracy of the information and analyses contained in 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 a Legal Opinion
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 discussed in the report.

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 be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.

It is 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 this appraisal.

It 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/or an attorney.

It 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 regulations affecting the subject property.

Appraisal Report - D'Arrigo Brothers Page 47
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 of 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.

It 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 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 appraisers) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.

Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with Limited Data
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 appraisers) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.

The appraisers) 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 other components
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 appraisers) is not an environmental nor health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.

No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated Appraisal Report - D'Arrigo Brothers Page 48
No chemical or scientific tests were performed by the appraisers) 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. It is 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 noted in the report. If any problems of this nature are known to 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. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.

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 of any particular item, we would 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 or 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 provided by others, etc.

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 additional data gathering for a higher level of certainty.

Appraisal Report - D'Arrigo Brothers Page 49
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 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 the value estimate and information given in this report.

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 the information contained in these reports.

Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to 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, which is defined in 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 economically in the marketplace as of the date of value.

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 of the properties in the vicinity of the property appraised.

Acceptance of Appraisal Report
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

This appraisal is an estimate of value based on an analysis of information known to the Appraisers) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any conditions become apparent not previously known to the appraisers) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.

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).

Appraisal Report - D'Arrigo Brothers Page 50

ADDENDUM
Grant Deed of
Easement #3 - Sanitary Sewer Easement
APN 223-061-0023
D'Arrigo Bros. Co. of California to City of Gonzales

Containing an area of 2,428 square feet, more or less.

This legal description was prepared by:
› RA-
Lynn A. Kovach P.L.S. 5321
Dated: December 17, 2021

EXHIBIT
OF EASEMENT #3
SANITARY SEWER EASEMENT WITHIN TRACTS 3A & 3B IN

THE RANCHO RINCON DE LA PUENTE DEL MONTE, LEGEND
CROSSING LANDS OF D'ARRIGO BROS CO. OF CALIFORNIA
DESCRIBED IN DOCUMENT 2020000064, PROPERTY LINE

OFFICIAL RECORDS OF MONTEREY COUNTY NEW TEMPORARY

CONSTRUCTION EASEMENT

GONZALES, CALIFORNIA LIMITS OF NEW SANITARY SEWER

IIIII HAEMEN
Easement #3 Location

APN ENCUMBERING D'ARRIGO PARCEL
Point of Beginning 223-061-023 EXISTING SANITARY SEWER
Easement #3 EASEMENT
New SS easement
- sS NEW SANITARY SEWER LINE

APN APN APN
223-011-032 223-011-036 223-011-059
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION

EASEMENT
Gonzales River Road SANITARY SEWER EASEMENT

VICINITY MAP
Not to scale Easement #4
New SS easement
D'Arrigo
Document #2020000064 Easement #6
APN 223-061-023 New TCE Easement #3
sting easement encumbering New 5.00' wide
IX? D'Arrigo parcel SS easement
PREPARED BY:

POLARIS LAND SURVEYING
CARMEL VALLEY, CA Chunn Ranch LLC
831-659-9564 3189-OR-1129 "New TCE encumbering Existing EASEMENT DETAIL APN 223-011-032 Chunn Ranch parcel SS easement SCALE: AS NOTED VIEW: PLAT DATE: 12-8-2021 SCALE: 1"=40' FILE NAME: IWTF SS PLATS.DWG 20-129.02 1831-OR-456
Grant Deed of
Easement #4 - Sanitary Sewer Easement
APN 223-061-0023
D'Arrigo Bros. Co. of California to City of Gonzales

BEGINNING at a point on the westerly line of 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 map filed in Volume 18 of Surveys at Page 87, said easterly line labeled as N52° 04' 43"E, 2256.57' on said map, bears the 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 to the northerly terminus of said easterly line of said land; thence from said POINT OF BEGINNING along said westerly line of said 15 foot wide sanitary sewer easement the 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 5 foot wide sanitary sewer easement described in the deed recorded on April 23, 1985 in Reel 1831, Page 467, Official Records of said County; thence along said northerly end of said 5 foot wide sanitary sewer easement
3) North 77° 52'36" West, 5.00 feet; thence along the westerly line of said 5 foot wide sanitary sewer easement
4) South 12° 07' 24" West, 25.12 feet; thence departing said 5 foot strip crossing said land described in said deed recorded as Document Number 2020000064 5) North 77° 52'36" West, 3.46 feet; thence
Grant Deed of
Easement #4 - Sanitary Sewer Easement
APN 223-061-0023
D'Arrigo Bros. Co. of California to City of Gonzales
6) North 11° 37' 55" East, 40.71 feet; thence parallel to and 7.50 feet westerly of the westerly line of said 15 foot wide sanitary sewer easement described in the deed recorded in Book 321, Page 21 7) North 53° 33' 00" East, 425.07 feet; thence perpendicular to said 15 foot wide sanitary sewer easement
8) South 36° 27' 00" East, 7.50 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: December 17, 2021

EXHIBIT
OF EASEMENT #4
SANITARY SEWER EASEMENT WITHIN TRACTS 3A & 3B IN

THE RANCHO RINCON DE LA PUENTE DEL MONTE, LEGEND
CROSSING LANDS OF D'ARRIGO BROS CO. OF CALIFORNIA

PROPERTY LINE
DESCRIBED IN DOCUMENT 2020000064,

NEW TEMPORARY

OFFICIAL RECORDS OF MONTEREY COUNTY CONSTRUCTION EASEMENT

GONZALES, CALIFORNIA LIMITS OF NEW SANITARY SEWER

VIIIA EASEMENT
Easement #4
Location APN ENCUMBERING D'ARRIGO PARCEL
223-061-023 EXISTING SANITARY SEWER
Point of Beginning EASEMENT
Easement #4
New SS easement - ss NEW SANITARY SEWER LINE

APN APN APN
223-011-032 223-011-036 |223-011-059
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION

EASEMENT
Gonzales River Road SANITARY SEWER EASEMENT

VICINITY MAP
Not to scale Easement #5 D'Arrigo
New SS easement Easement #4
Document #2020000064
encumbering New SS easement
APN 223-061-023 Easement #6
D'Arrigo parcel encumbering
easement D'Arrigo parcel New TCE
-OR-467 Existing encumbering
easement D'Arrigo parcel
Existing 1831-

50. New wide Property Line
PREPARED BY:

A strip of land, 15 feet in width, lying 7.5 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 on the map recorded in Volume 23 of Cities and Towns at Page 19, Official Records of said County; thence along the common line between said Tract 3B and said Lot 4, North 52° 26' 39" East, 31.12 feet to the POINT OF BEGINNING; thence 1) North 38° 28' 11" West, 887.87 feet to the southerly line of an existing 5 foot wide sanitary sewer easement described in the deed recorded in Reel 1831 at Page 456, Official Records of said County and 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
EXHIBIT VICINITY MAP Violini
Not to scale APN 020-021-003
OF EASEMENT #6
SANITARY SEWER EASEMENT SITUATE WITHIN Existing SS
Easements Mann
TRACT 3B IN THE RANCHO RINCON DE LA Hibino Easement #6 APN 223-061-006 Doc #2020019826 Location D'Amigo
PUENTE DEL MONTE, CROSSING LANDS OF APN 223-011-059 APN 223-061-023 D'ARRIGO BROS CO. OF CALIFORNIA
Doc. #2020000064
DESCRIBED IN DOCUMENT 2020000064,
OFFICIAL RECORDS OF MONTEREY COUNTY Mann
Lot 5 Lot4 Lot 3 Lot 2 APN 020-021-05C
GONZALES, CALIFORNIA Lot 1
V.23 CITIES&TOWNS P.19
Existing SS Easement D'Arrigo
Per 321-OR-21
APN 223-061-023
Existing SS Easement New 50'
Per 1831-OR-456 wide TCE Document #2020000064 Easement #6 New 15' wide SS
POB
=
NOTES
COURSE # IN LEGAL DESCRIPTION 20 Wide Existing POC
SS Easement
TCE TEMPORARY CONSTRUCTION EASEMENT Per Doc #2001025055

SANITARY SEWER EASEMENT

POB POINT OF BEGINNING

POC POINT OF COMMENCEMENT
LEGEND
PREPARED BY:

PROPERTY LINE EXISTING SANITARY SEWER EASEMENT POLARIS LAND SURVEYING SANITARY SEWER EASEMENT CENTERLINE OF SS CARMEL VALLEY, CA | 831-659-9564 LIMITS OF NEW SANITARY NEW TEMPORARY SCALE: 1" = 90' VIEW: D'ARRIGO SS-6 DATE: 08-01-2024 JOB #20-129.02
SEWER EASEMENT CONSTRUCTION EASEMENT FILE NAME: IWTF SS PLATS.DWG Grant Deed of
Easement #7 - Sanitary Sewer Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales

LEGAL DESCRIPTION
Situate within Tract 3A and 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 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:

A strip of land 15 feet in width lying 7.5 feet on either side of 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 Lot 1 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot 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 of said Lot 1, South 52° 29'00" West, 14.63 feet to the POINT OF BEGINNING; thence departing said northwesterly line
1) North 41° 51'22" West, 238.60 feet; thence
2) North 48° 47' 15" East, 10.58 feet more or less to a point on the easterly line of said tract of land described in said Document Number 2020000064 and the end of 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: August 1, 2024
EXHIBIT Violini
APN 020-021-003
OF EASEMENT #7 D'Arrigo
APN 223-061-023
SANITARY SEWER EASEMENT WITHIN Mann
TRACTS 3A & 3B IN THE RANCHO RINCON DE LA Doc. #2020000064 APN 223-061-006 Hibino
PUENTE DEL MONTE, CROSSING LANDS OF Doc #2020019826
APN 223-011-059
D'ARRIGO BROS CO. OF CALIFORNIA
DESCRIBED IN DOCUMENT 2020000064, Easement #7 Location
OFFICIAL RECORDS OF MONTEREY COUNTY Mann
GONZALES, CALIFORNIA APN 020-021-050
Lot 5 Lot4 Lot3 Lot 2 Lot 1
V.23 CITIES&TOWNS P. 19
Katherine Street

VICINITY MAP
Not to scale
LEGEND

NEW TEMPORARY CONSTRUCTION EASEMENT

CENTERLINE OF SS
Easement #7 PROPERTY LINE
New 15' SS SANITARY SEWER EASEMENT
Mann
APN 020-021-050 LIMITS OF NEW SANITARY
D'Arrigo New TCE SEWER EASEMENT
APN 223-061-023 encumbering
Doc. #2020000064 D'Arrigo COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION

EASEMENT
New TCE SANITARY SEWER EASEMENT
encumbering
Mann POC POINT OF COMMENCEMENT

POB POINT OF BEGINNING
New 50' PREPARED BY:
wide TCE POLARIS LAND SURVEYING
POB CARMEL VALLEY, CA (831-659-9564
SCALE: 1" = 60' VIEW: D'ARRIGO SS-8
POC DATE: 08-01-2024 JOB#20-129.02
FILE NAME: IWTF SS PLATS.DWG
Grant Deed of
Easement #8 - Sanitary Sewer Easement
APN 223-061-023
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 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 of said County, being particularly described as follows:

A strip of land 15 feet in width lying 7.5 feet on either side of the described centerline:

Containing an area of 2,538 square feet, more or less.

This legal description was prepared by:

Lynn A. Kovach P.L.S. 5321
Dated: August 5, 2024

EXHIBIT APN
OF EASEMENT #8 223-061-020 D'Arrigo
SANITARY SEWER EASEMENT WITHIN APN 223-061-023
Document #2020000064
TRACT 3B IN THE RANCHO RINCON DE LA
APN
PUENTE DEL MONTE, CROSSING LANDS OF 223-061-019 Easement #8 Location D'ARRIGO BROS CO. OF CALIFORNIA APN 223-061-002
DESCRIBED IN DOCUMENT 2020000064,
OFFICIAL RECORDS OF MONTEREY COUNTY APN Chunn Ranch LLC GONZALES, CALIFORNIA 223-011-028 3189-OR-1129
APN 223-011-032
APN 223-061-014

VICINITY MAP
LEGEND Not to scale
D'Arrigo
APN 223-061-023 TEMPORARY CONSTRUCTION EASEMENT
Document #2020000064 CENTERLINE OF SS

PROPERTY LINE

SANITARY SEWER EASEMENT

LIMITS OF NEW SANITARY
Easement #8 SEWER EASEMENT
New TCE New 15' wide SS
POC
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION
City of Gonzales EASEMENT
APN 223-061-019
Doc. #2008026323 SANITARY SEWER EASEMENT
POB

POC POINT OF COMMENCEMENT

POB POINT OF BEGINNING
City of Gonzales
APN 223-061-002
City of Gonzales PREPARED BY:

Parcel G APN 223-061-014 POLARIS LAND SURVEYING
7-PM-135 Document #2003033616 CARMEL VALLEY, CA | 831-659-9564 SCALE: 1" = 50' VIEW: D'ARRIGO SS-8
DATE: 08-05-2024 JOB #20-129.02
FILE NAME: IWTF SS PLATS.DWG
Grant Deed of
Easement #9 - Temporary Construction Easement
APN 223-061-023
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 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 of said County, being particularly described as follows:

BEGINNING at the most southwesterly corner of said land shown on said map filed in Volume 36 of 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' 55"E, 854.75 feet; thence
5) N53° 50'42"E, 1,009.58 feet; thence
6) N53° 32' 26"E, 999.93 feet; thence
7) N53° 33' 28"E, 1,000.09 feet; thence
8) N53° 54' 57"E, 1,000.08 feet; thence
9) N53° 56' 22"E, 906.91 feet; thence
10) N53° 28' 33"E, 999.94 feet; thence
11) N53° 39' 19"E, 842.30 feet; thence
12) N52° 54' 57"E, 170.05 feet; thence
13) S38° 28' 11"E, 921.46 feet to a point on the northeasterly line of Lot 4 as said Lot is shown on Volume 23 of Cities and Towns at Page 19; thence along said northeasterly line 14) S52° 27' 02"W, 50.01 feet; thence departing said northeasterly line of said Lot 4 15) N38° 28' 11"W, 871.85 feet; thence
16) S52° 54' 57"W, 121.56 feet; thence
17) S53° 39'19"W, 570.37 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, 17.44 feet; thence
19) S53° 35' 51"W, 3,937.70 feet; thence
20) N40° 24' 14"W, 10.00 feet; thence
21) S53° 34' 26"W, 2,256.28 feet; thence
Grant Deed of
Easement #9 - Temporary Construction Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales
22) S12° 08' 50"W, 835.04 feet; thence
23) S69° 40' 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, 38.50 feet; thence
26) N87° 04' 47"W, 99.66 feet, to the POINT OF BEGINNING Containing an area of 7.4 acres, more or less.

This legal description was prepared by:

Lynn A. Kovach P.L.S. 5321
Dated: August 5, 2024

EXHIBIT
OF EASEMENT #9
TEMPORARY CONSTRUCTION EASEMENT WITHIN TRACT 3B

IN THE RANCHO RINCON DE LA PUENTE DEL MONTE,
CROSSING LANDS OF D'ARRIGO BROS CO. OF CALIFORNIA
DESCRIBED IN DOCUMENT 2020000064, APN 223-061-023
Document #2020000064

OFFICIAL RECORDS OF MONTEREY COUNTY
Easement #9 location

GONZALES, CALIFORNIA

LEGEND APN APN
PROPERTY LINE 223-011-032 223-011-036 APN
223-011-059

NEW TEMPORARY CONSTRUCTION EASEMENT VICINITY MAP
LIMITS OF NEW TEMPORARY Not to scale
• CONSTRUCTION EASEMENT
COURSE # IN LEGAL DESCRIPTION

TCE TEMPORARY CONSTRUCTION EASEMENT
D'Arrigo
APN 223-061-023 Easement #9 - New TCE
Document #2020000064 encumbering D'Arrigo
26) 23) Chunn Ranch LLC Violini Hibino
3189-OR-1129 2043-OR-1082 Doc #2020019826
APN 223-011-032 APN 223-011-036 APN 223-011-059
PREPARED BY:

POLARIS LAND SURVEYING

CARMEL VALLEY, CA
831-659-9564
SCALE: 1" = 800' VIEW: D'ARRGIO TCE DATE: 08-06-2024
FILE NAME: IWTF SS PLATS.DWG 20-129.02
Grant Deed of
Easement #10 - Temporary Construction Easement
APN 223-061-023
D'Arrigo Bros. Co. of California to City of Gonzales

BEGINNING 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 Lot 1 of Tract No. 1455, Vista de Santa Lucia, Gonzales Agricultural Business Park, as said lot 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 of said 1) South 52° 27' 02"West, 39.70 feet; thence departing said northwesterly line crossing said tract 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, to the POINT OF 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
EXHIBIT Violini
APN 020-021-003
OF EASEMENT #10 D'Arigo
APN 223-061-023
TEMPORARY CONSTRUCTION EASEMENT WITHIN Mann
TRACT 3B IN THE RANCHO RINCON DE LA Doc. #2020000064 APN 223-061-006 PUENTE DEL MONTE, CROSSING LANDS OF Hibino
Doc #2020019826
D'ARRIGO BROS CO. OF CALIFORNIA APN 223-011-059
DESCRIBED IN DOCUMENT 2020000064, Easement #10 Location

OFFICIAL RECORDS OF MONTEREY COUNTY
GONZALES, CALIFORNIA Mann
APN 020-021-050
Lot 5 Lot4 Lot3 Lot2 Lot 1
V.23 CITIES&TOWNS P.19
Katherine Street

VICINITY MAP
Not to scale
LEGEND

NEW TEMPORARY CONSTRUCTION EASEMENT
D'Arrigo PROPERTY LINE
APN 223-061-023
Doc. #2020000064 SANITARY SEWER EASEMENT

LIMITS OF NEW TEMPORARY

CONSTRUCTION EASEMENT
Easement #10 - New TCE COURSE # IN LEGAL DESCRIPTION
encumbering D'Arrigo TCE TEMPORARY CONSTRUCTION
Mann EASEMENT
APN 020-021-050 SANITARY SEWER EASEMENT

POC POINT OF COMMENCEMENT

POB POINT OF BEGINNING
New 15' wide SS PREPARED BY:
encumbering D'Arrigo POLARIS LAND SURVEYING

CARMEL VALLEY, CA
831-659-9564
Avolem LLC Lot 1 SCALE: 1" = 80' VIEW: D'ARRGIO TCE-9
Doc. #2017013449 23-C&T-19 DATE: 08-05-2024 JOB#20-129.02 FILE NAME: IWTF SS PLATS.DWG
PIINI

REALT Y

QUALIFICATIONS OF THE APPRAISER
John Pini 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
University of California, Los Angeles, BA degree -1974
Appraisal Education
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 Associate appraiser with Joe Piini, MAI
1983 - 2008 Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, development and management. 2008 - present 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
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.

Professional affiliation and memberships
MAI - 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 | TEL 831-422-5327 | FAX 831-422-8280 | PiiniRealty.com

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, MAl. 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. 2019 - Current In 2019, Greg became part owner of Piini Realty-a family owned and operated real estate firm involved in appraising, brokerage, 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

Gonzales City CouncilOctober 21, 2024

Gonzales City Council
October 21, 2024