Economic Development Committee
December 4, 2023

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12/4/2023 4:00:00 PM
www.modestogov.com
AGENDA
City of Modesto

ECONOMIC DEVELOPMENT COMMITTEE

COUNCIL WORKSHOP
Room 2001-40 Del Puerto Room
Tenth Street Place, 1010 10th Street
Modesto, California
Monday, December 04, 2023 at 4:00 PM
Roll Call: Sue Zwahlen, Chair
Chris Ricci, Vice-Chair
Eric Alvarez, Member
Alternates: Nick Bavaro, Rosa Escutia-Braaton, Jeremiah Williams, David Wright Council has not delegated directive or final approval authority to the Committees.

Committee actions are recommendations to the full City Council, not final decisions on an issue. * Public Comment will only be in-person. Members of the public who wish to address the Committee, by providing public comment, during the meeting must do so in-person in the 2001-40 Del Puerto Room. As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation. *Members of the public will be allowed to provide public comment through Zoom if a Committee Member is participating remotely pursuant to the provisions of Assembly Bill 2449. *Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the Committee meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. Alternative viewing options are listed below, and the meeting is physically open to the public.
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"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace https://attend.wordly.ai/join/RJDY-6364.

THE MEETING CAN BE VIEWED BY ZOOM VIDEO

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Joining the Committee meeting via Zoom
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PUBLIC COMMENTS IN PERSON
Three-minute time limit per speaker.

Only interested persons in the audience may present these matters. Under State law, Committee Members may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Committee Member or the Committee itself may take action to direct staff to place a matter of business on a future agenda.

SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Committee - 2 -
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Members and placed in the record but will not be read aloud during the meeting. Written comments must be received two hours before the meeting.

This Agenda is on file in the City Clerk’s Office, Sixth Floor, 10th Street Place, Posting Board at entry of 10th Street Place, and is available on the City’s Web site at www.modestogov.com.

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting, at the following website www.modestogov.com/councilmeetings In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting
Any and all of the following agenda items are subject to action by the Modesto City Council.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED:

Information concerning the consent items listed below has been forwarded to each Committee Member prior to this meeting for study. Unless some member of the audience or Committee Member has a question concerning an item and asks that it be withdrawn from the consent list, the Committee approves the items at one time. The action taken by the Committee in approving consent items is set forth in the explanation of this individual item.

CONSENT
An item may be removed from consent and discussed at the request of an audience member or committee member.

Consent

1. Consider a Grant of Easement Rights to the Sacramento and San Joaquin Drainage District, and a Land Grant to Reclamation District 2091, and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion recommending a Grant of Easement Rights to the Sacramento and San Joaquin Drainage District, and a Land Grant to Reclamation District 2091, and forwarding to Council for approval.

UTILITIES; Jeff Daniels, 209-577-6255, [email protected] - 3 -
12/4/2023
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12/4/2023 4:00:00 PM
Consent

2. Consider the First Amendments to the On-Call Engineering Consultant Agreements with Brown & Caldwell, Carollo Engineers, and Hazen and Sawyer, and the Second Amendments to the On-Call Engineering Consultant Agreements with Black Water Consulting Engineers, Inc., West Yost Associates, and Woodard & Curran, to remove the annual “not to exceed” language and forwarding to Council for approval. (Funding Source: Sewer Fund and Storm Drain Fund)
 Motion recommending the First Amendment to the On-Call Engineering Consultant Agreements with Brown & Caldwell, Carollo Engineers, and Hazen and Sawyer, and the Second Amendment to the On-Call Engineering Consultant Agreements with Black Water Consulting Engineers, Inc., West Yost Associates, and Woodard & Curran, to remove the annual “not to exceed” language and forwarding to Council for approval.

UTILITIES; Jeff Daniels, 209-577-6255, [email protected]

NEW BUSINESS

3. Consider a Professional Services Agreement with Natelson Dale Group for Economic Development Strategic Planning, for a total amount not to exceed $144,875 and forwarding to Council for approval. (Funding Source: General Fund)  Motion recommending the Professional Services Agreement with The Natelson Dale Group, for a total amount not to exceed $144,875 for Economic Development Strategic Planning Services and forwarding to Council for approval.

CED; Trevin Barber, 209-571-5566, [email protected]

ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on at by
date time signature
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12/4/2023

CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

December 4, 2023
Date: November 6, 2023
TO: Economic Development Committee
Sue Zwahlen, Chair
Chris Ricci, Vice-Chair
Eric Alvarez, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: William Wong, Director of Utilities
SUBJECT: City of Modesto Grant of Easement Rights to Sacramento and San Joaquin Drainage District and Land Grant to Reclamation District 2091 CONTACT: Jeff Daniels, Acting Wastewater Division Manager, [email protected], 209-577-6255
DESCRIPTION:

Consider a Grant of Easement Rights to the Sacramento and San Joaquin Drainage District, and a Land Grant to Reclamation District 2091, and forwarding to Council for approval. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2020-2025 Strategic Plan Initiatives, Goal D:

Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

Reclamation District (RD) 2091 is comprised of 26 landowners, representing approximately 7,015 acres. The City of Modesto owns approximately 4,500 of the associated acres, or 64% of RD 2091, as part of the City’s Regional Water Recycling Facility-Jennings Campus. This district is governed by the RD 2091 Board of Trustees, which is comprised of three (3) landowner members, including a representative of the City of Modesto.

In 2012, RD 2091 and Department of Water Resources (DWR) performed inspections on the RD 2091 levee system where stability issues were identified at five (5) damaged levee site locations, totaling approximately 11,038 feet.

Consultants were hired by RD 2091 to evaluate and develop the scope of work necessary to address the identified levee damages and coordinate the construction efforts to repair and stabilize the levee along the San Joaquin River and adhere to all Federal and State mandated requirements.
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Economic Development Committee, December 04, 2023
City of Modesto Grant of Easement Rights to SSJDD and Land Grant to RD 2091

DISCUSSION:

Seepage berms were constructed to accommodate changing river levels without eroding the levee system in high-risk areas to mitigate the damage to the levee. The project required an extension of the levee toe and associated easement on public land owned by the City of Modesto.

The City is the sole property owner of land adjacent to the entire stretch of the RD 2091 levee system. To meet “in kind” contribution to the repair of the levee system, the City will grant a portion of the parcels listed below to RD 2091. In doing so, DWR will contribute a monetary match to RD 2091 to offset repair costs. The land contribution for this Project involves all real property that was required to physically construct the seepage berms as well as property utilized to extend the rightof-way easement.

Working with DWR, the City determined it was in the best interest to protect its assets1 from future flood risk and grant approximately 19.63 acres from the adjacent City of Modesto property to RD 2091 to enable the levee repair and stabilization project. This area includes an easement, approximately 15 feet wide, to accommodate a required access road at the base of the berm. The easement is necessary for routine access to the levee for continued inspections and maintenance requirements.

Land Grant Parcels:

Pursuant to Government Code section 54221(f)(1)(D), the transfer of this property is not subject to the requirements of the Surplus Land Act because it involves a transfer of property to another public agency for its use.

FISCAL IMPACT:

These parcels were appraised at a total, combined value of $177,000. The appraised value of these parcels is considered the City’s “in-kind” match for the repairs of the levees.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending a Grant of Easement Rights to the Sacramento and San Joaquin Drainage District, and a Land Grant to Reclamation District 2091, and forwarding to Council for approval. 1 The City of Modesto Regional Water Recycling Facility Jennings Campus houses approximately $250 million in wastewater treatment associated assets.

Real Property Total Parcel Size
(acres)
Parcel 14905 10.097
Parcel 14906 1.328
Parcel 14907 0.627
Parcel 14908 4.416
Parcel 14909 3.160
Total 19.628
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Economic Development Committee, December 04, 2023
City of Modesto Grant of Easement Rights to SSJDD and Land Grant to RD 2091

Approved by:

William Wong, Director of Utilities
Joseph P. Lopez, City Manager
Attachments:

1. Easement Deed

2. Grant Deed

3. Appraisal Report
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2825 Watt Avenue, Suite 200 Sacramento, California 95821 | www.benderrosenthal.com | 916.978.4900 March 18, 2022
Jesse Franco, P.E.

Engineering Division Manager
Utilities Department
City of Modesto
1010 10th Street, Ste. 2100
Modesto, California 95354
Re: Levee Repair
Agricultural Land
City of Modesto
Stanislaus County, California
APNs: 022-001-005, 022-004-001 & 058-001-001
Dear Mr. Franco,
We have completed the appraisal of the above-referenced subject property impacted by the proposed Levee Repair Project. The subject property consists of 1,999.34± acres of agricultural land. Our preliminary research indicates that the three parcels were determined to be one larger parcel. The Project involves improvements to a levee developed on the subject property. It is our understanding that the Project will require five partial acquisitions from the subject larger parcel in Fee. The report will provide an opinion of fair market value for the subject acquisitions. The client is the City of Modesto. The intended users are the client and the California Department of Water Resources. The intended use of the report is to assist the client with securing State Cost-Share Funding relating to the anticipated levee repairs.

This is a narrative Appraisal Report as defined by USPAP. As such, it summarizes the data, reasoning, and epth
of discussion contained in this report is specific to the needs of the client and of the intended use stated in this report. The following report sets forth the descriptive and factual data, the assumptions and conditions affecting the appraisal, and the findings and analyses that lead to and support our value opinion. The appraiser is not responsible for unauthorized use of this report. Every effort has been made to conform to the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 1970 as amended; the Uniform Standards of Professional Practice (USPAP) of the Appraisal Foundation; and Standards of Professional Practice of the Appraisal Institute, which fully incorporate the Uniform Standards of Professional Practice (USPAP). The undersigned developed the appraisal and prepared the report. #1..
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Mr. Jesse Franco
March 18, 2022
Page II
2825 Watt Avenue, Suite 200 Sacramento, California 95821 | www.benderrosenthal.com | 916.978.4900 We are pleased to have this opportunity to provide you with professional appraisal services.

BENDER ROSENTHAL, INC.

Ross Campbell
Certified General Real Estate Appraiser
California Certificate No. 3003418
David C. Houghton, MAI
Certified General Real Estate Appraiser
California Certificate No. AG039402
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 III

TABLE OF CONTENTS

LETTER OF TRANSMITTAL
TABLE OF CONTENTS.................................................................................................................................... III PROPERTY IDENTIFICATION AND SUMMARY OF SALIENT FACTS .................................................................V INTRODUCTION............................................................................................................................................. 1 Client, Intended Use, Intended User of the Appraisal
Scope of Work
Definitions Used in the Report
General Assumptions and Limiting Conditions
Extraordinary Assumptions and Hypothetical Conditions
STANISLAUS COUNTY REGIONAL OVERVIEW ............................................................................................... 8 Geographic Considerations
Regional Map
Stanislaus County Regional Overview
Access and Transportation
Population
Economic Profile
Unemployment Rate
Housing Tenure / Values
Regional Analysis Conclusion
NEIGHBORHOOD DESCRIPTION / IMMEDIATE ENVIRONS .........................................................................15 General Description
Subject Area Map & Land Uses
Neighborhood Development and Market Overview
Neighborhood Conclusion
MARKET OVERVIEW....................................................................................................................................18 Agricultural Land Trends
IDENTIFICATION OF LARGER PARCEL / PROPERTY DESCRIPTION...............................................................21 Determination of Larger Parcel
Identification of Parcel Ownership
Aerial Photograph
Larger Parcel Description
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 IV
PROJECT DESCRIPTION AND PROPOSED ACQUISITION ..............................................................................28 Description of the Project
Description of the Proposed Acquisition
Acqusition Exhibit
Description of the Remainder
HIGHEST AND BEST USE ANALYSIS..............................................................................................................31 Highest and Best Use, As Vacant
Highest and Best Use of the Remainder
VALUATION .................................................................................................................................................34 Valuation Premise
Valuation of the Larger Parcel (Land Only)
Comparable Land Sales Summary Table and Map
Value of the Proposed Acquisition
Value of the Remainder as Part of Larger Parcel (Land Only) Value of the Remainder, After Acquisition, Before Benefits Severance Damages
Value of the Remainder, After Acquisition, Considering Benefits Benefits
Opinion of the Fair Market Value
APPENDIX....................................................................................................................................................44 Appraise
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 V

PROPERTY IDENTIFICATION AND SUMMARY OF SALIENT FACTS
Appraisal Assignment To develop an opinion of the fair market value of the parcels involved in securing funds for a Levee Repair
Project, City of Modesto
Property Location City of Modesto

PROPERTY DATA
Legal Description See Title Reports
022-001-005, 022-004-001 & 058-001-001
Owner of Record City of Modesto
Large Parcel Area 1,999.34 ±acres
Site Description The subject property consists of 1,999.34± of agricultural land, primarily row crops.

Zoning Public, City of Modesto
General Plan Designation Agriculture
Flood Information The subject property lies in Zone AE. This designation is for areas of Special Flood Hazard Area (SFHA), usually depicted as base flood or 100-year flood level.

FEMA Flood Map Community Panel No.
06099C0540F, date 08/24/2021.

Seismic Information As verified through the California Department of Conservation website the subject property is not
within an earthquake fault zone.

Toxic Hazards Information We were not provided with a Phase I environment assessment. This appraisal therefore assumes that
there is no toxic contamination on the subject
property.

Wetlands No wetlands on site
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 VI
Sales History To the best of our knowledge, the subject property has not sold within the previous three years, nor is it currently listed for sale.

Date of Inspection March 16, 2022
Date of Value March 16, 2022
Date of Report March 18, 2022
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 1

INTRODUCTION

CLIENT, INTENDED USE, INTENDED USER OF THE APPRAISAL
The client is the city of Modesto, and the intended user is primarily the city of Modesto and the California Department of Water Resources. The intended use of the report is to assist the client with securing State Cost-Share Funding relating to the anticipated levee repairs.

SCOPE OF WORK
The appraisal assignment is to develop an opinion of fair market value of the proposed project requirements to be acquired by the city of Modesto. The date of value is based on the inspection date, unless noted otherwise in the appraisal. The date of the report is the date the appraisal is transmitted to the client.

VALUATION / RESEARCH OVERVIEW
The following is an overview of the valuation process and research involved for the subject property and comparable sales. The valuation of the property involved an investigation and analysis of the neighborhood, as well as the entire regional area, for social, economic, governmental, and environmental forces and trends that affect or could influence property values.

The property was inspected on March 15, 2022 by Ross Campbell from Bender Rosenthal, Inc. The owner was present at the time of the inspection.

Research the area, community, and neighborhood to determine market influences/conditions.

Research of public records to verify information about the subject property and comparables to ensure they are factually accurate and that there are no terms or additional influences that affect price or value.

Research zoning and general plans obtained from Stanislaus County Planning Department, and other department websites, and research of the residential market.

Review of applicable soil surveys, flood and seismic hazard areas from appropriate source data.

Review public records obtained from the various city and county governmental agencies including A search of specific property transfers occurring during the past five years was conducted for the subject property.

Determine highest and best use of the property.

Research comparable property sales, listings, and offers to purchase or sales involving properties similar to the subject property and within the sub
Interview comparable property owners and/or brokers.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 2

VALUATION APPROACHES
The appraisal process includes the investigation and analysis of the subject, market, and other relevant data for the purpose of providing an opinion of the defined value for the subject property. All economic forces and factors are considered in arriving at the highest and best use and valuation of the subject property.

There are typically three approaches to value that may be used in the real property valuation process.

They are the Sales Comparison Approach, Income Approach, and Cost Approach. Each approach provides an indicated value that is reconciled into a final estimate of value for the subject based on the interests appraised the defined objective of the valuation and the stated definition of value. The analysis may include one, two or all three approaches to value based on the data available, the type of property and appraisal valuation problem.

SALES COMPARISON APPROACH
A value indication is derived by comparing similar properties that have sold recently to the property being appraised; making qualitative or quantitative comparisons to the subject; then applying units of comparisons to indicate a value for the larger parcel or remainder parcel. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of valuation when an adequate supply of comparable sales is available. Sales, listings and current escrows of comparable properties were considered in this analysis.

Primary reliance has been placed on closed sales transactions.

INCOME APPROACH
A value indication is derived for income-producing property by converting its anticipated benefits (cash flows and reversion) into a value for real property interests. Typically, the annual net income is capitalized at a market-derived capitalization rate to estimate the desired value. The income approach is most often used for income producing properties or real estate acquired as an investment. The Income Approach was not utilized to value the subject, as this is not a typical method utilized to value vacant agricultural properties.

COST APPROACH
A value indication is derived for a property by estimating the current cost to construct a replacement/reproduction of the existing structure(s); deducting depreciation from all sources; and adding the estimated land value. The cost approach is most often used when valuing properties with new or relatively new improvements and also special use properties. The Cost Approach is not considered to be applicable to this appraisal problem because this is not a typical approach employed to estimate the value of vacant agricultural properties.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 3

RIGHT OF WAY APPRAISALS
Appraisals for public acquisitions involve acquiring fee title and/or easement rights from an owner. In situations, whereby a property is leased, the property is valued as if title were held by a single entity, may not be included in the analysis.

PARTIAL ACQUISITION INTEREST ANAYLSIS
Partial Acquisition Interest Analysis. The partial acquisition interest analysis starts with an estimate of market value for the undivided fee interest of the larger parcel using the most applicable method for valuing similar properties. Once the larger parcel value is estimated the following partial acquisition appraisal methodology is utilized:

Value the part acquired.

Value of the remainder parcel as part of the larger parcel, which is the value of the remainder before consideration of damages or benefits.

Value the remainder parcel, after the proposed acquisition and before consideration of benefits.

This identifies severance damages due to the acquisition, consisting of a potential loss of market value (by comparing to value of the remainder as part of the larger parcel) and cost to cure damages are estimated where applicable.

Value the remainder parcel, after the acquisition, considering benefits. This identifies benefits, consisting of a potential gain in market value due to the construction in the manner proposed (by comparing to value of the remainder before benefits).

The value of the acquisition is the value of the part acquired plus net severance damages as California law allows benefits to only offset severance damages.

REPORT TYPE
The appraisal is reported in a narrative Appraisal Report format as defined by USPAP.

SPECIAL ASSIGNMENT CONDITIONS
None
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 4

DEFINITIONS USED IN THE REPORT
Definition of an Appraisal
Source: The Dictionary of Real Estate Appraisal, Appraisal Institute, 7th Edition P. 10 The act or process of developing an opinion of value, an opinion of value.

Fair Market Value
Source: Section 1263.320 of the Code of Civil Procedure A) 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 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.

B) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.

The Code goes on to say that:

The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following:

A) The project for which the property is taken.

B) The eminent domain proceeding in which the property is taken.

C) Any preliminary actions of the plaintiff relating to the taking of the property.

Larger Parcel
Source: The Dictionary of Real Estate Appraisal, Appraisal Institute, 7th Edition P. 105 In governmental land acquisitions and in valuation of charitable donations of partial interests in property such as easements, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some state cases, however, contiguity is sometimes subordinated to unitary use.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 5
Extraordinary Assumption
Source: Uniform Standards of Professional Appraisal Practice 2020-2021 Edition, P. 4 An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which,
Hypothetical Condition
Source: Uniform Standards of Professional Appraisal Practice 2020-2021 Edition, P. 4 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.

Damage to Remainder
Source: Section 1263.420 of the Code of Civil Procedure Damage to the remainder is the damage, if any, caused to the remainder by either or both of the following:
(a) The severance of the remainder from the part taken. (b) The construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken.

Fee Simple Estate
Source: The Dictionary of Real Estate Appraisal, Appraisal Institute, 7th Edition, P. 73 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.

The state, condition, or premise in which all existing and known future enhancements, faults, encumbrances, and conditions affecting the property rights being appraised are recognized and taken into account in the valuation process. For instance, the value effect of present or future bond encumbrances, likely extraordinary building costs, etc., would be evaluated. The value is based upon the conditions observed upon the most recent inspection, and as the property physically and legally exists in which a property is available for purchase.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 6

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report and the value estimates it contains are expressly subject to the following assumptions and/or limiting conditions.

1. Title to the property is marketable.

2. No survey of the property has been made by the appraisers and property lines as they appear on the ground are assumed to be correct.

3. Data, maps, and descriptive data furnished by the client or his/her representatives are accurate and correct.

4. No responsibility is assumed for matters of law or legal interpretation.

5. No conditions exist that would affect the use and value of the property, which are not discoverable through normal, diligent investigation.

6. The valuation is based on information from sources believed reliable, and that such information is correct and accurately reported.

7. The value estimate is made subject to the purpose, date, and definition of value.

8. The report is to be considered in its entirety and use of only a portion will invalidate the appraisal.

9. This appraisal was made on the premise that there are no encumbrances prohibiting utilization of the property under the appraiser's estimate of highest and best use.

10. Possession of this report or a copy does not carry with it the right of publication nor may it be used for any purpose by anyone other than the client without the previous written consent of Bender Rosenthal, Inc., and then only with proper qualifications.

11. Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the Appraisal Institute. No part of this narrative report may be reproduced by any means nor disseminated to the public in any way without the prior written consent of Bender Rosenthal, Inc.

12. Any person or entity who obtains or reads this report, or a copy, other than the client specified in this report, expressly assumes all risk of damages to himself or third persons arising out of reliance on this report and waives the right to bring any action based on the appraisal, and neither the appraisers nor the appraisal firm shall have any liability to any such person or entity.

13. The appraiser shall not be required to give testimony or appear in court by reason of this appraisal with reference to the property described in this report unless prior arrangements have been made.

14. No responsibility is assumed for building permits, zone changes, engineering or any other services or duty connected with legally utilizing the subject property. #1..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 7

15. The property appraised may or may not be subject to the Americans with Disabilities Act of 1990 (ADA). Title III of this act provides for penalties for discrimination in failing ". . . to remove architectural barriers . . .in existing facilities [unless] an entity can demonstrate that the removal. . . is not readily achievable. . ." Unless otherwise noted in this appraisal, it is assumed that the property appraised is not substantially impacted by this law.

16. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of such substances as asbestos, ureaformaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

17. It is assumed that the property appraised is competently managed and marketed.

EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS
Note to Reader: The subject property is subject to the following extraordinary assumptions and/or hypothetical conditions, which might have affected the assignment results.

EXTRAORDINARY ASSUMPTIONS

1. No preliminary title report was provided for review. This report assumes that there are no encumbrances or exceptions of title that negatively impact the utility or marketability of the subject, or its ability to be put to its highest and best use.

2. As per client information it is assumed that there are no damages to the remainder of the larger parcel, along with no impact to the site improvements.

HYPOTHETICAL CONDITIONS

1. The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: 1) the project for which the property is taken: 2) the eminent domain proceeding in which the property is taken; and 3) any preliminary actions of the plaintiff relating to the taking of the property. [California Code of Civil Procedure, Section 1263.330].

2. The valuation of the subject property, in the condition after the partial acquisition and the construction and use of the proposed project, is based on a hypothetical condition the project has been completed. This is due to the fact that, as of the effective date of value, the part being acquired has not yet been severed from the larger parcel and the project has not yet been fully constructed. Information about the project and its improvements as provided by the Authority is relied upon in analyzing the impacts the proposed project will have on the subject parcel in its remainder condition.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 8

STANISLAUS COUNTY REGIONAL OVERVIEW

GEOGRAPHIC CONSIDERATIONS
Social, economic, governmental, and environmental forces influence property value since real estate is an immobile asset. In this section, an examination of these location factors provides the context for the valuation of the subject property. Specifically, the property is situated in the outskirts of Patterson, in Stanislaus County.

Stanislaus County occupies a central location in California's vast agricultural heartland, the San Joaquin Valley. The county is located south of San Joaquin County, east of Contra Costa and Alameda Counties.

The county encompasses a total of approximately 1,500 ± square miles.

The county has nine designated cities which are: Modesto (County Seat), Patterson, Ceres, Hughson, Newman, Oakdale, Riverbank, Turlock, and Waterford.

REGIONAL MAP
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 9

STANISLAUS COUNTY REGIONAL OVERVIEW
A number of unincorporated communities, many of whose origins are traced to serving surrounding agricultural activities, function as important residential and employment centers. Modesto has traditionally been and continues to exist as the financial, governmental, cultural, and commerce center of the County.

ACCESS AND TRANSPORTATION
State Route 99 bisects Stanislaus County with the majority of development found along it. Interstate 5 also runs through the county, along the southwest portion with less intense development. Route 108, also known as McHenry Avenue, runs north and south through the center of Modesto and intersects major streets, as well as State Route 219. State Route 132 runs east and west through Modesto and is the direct access to Interstate 5. Additional transportation routes include State Highway 33, which runs north and south, and travels through the city of Patterson.

POPULATION
As of 2010, the population within Stanislaus County was at 514,453, and this number increased to 555,968 in 2021. This reflects an 8% increase in population over the 11-year period, or an average increase in population of 0.7% per year. It is noted; however, that some of the cities in Stanislaus County have experienced relatively high population growth rates including Modesto and Turlock. The cities of Modesto and Turlock have seen a 9% increase in population, experiencing a steady growth of approximately 0.8%, just slightly above the average growth of the county total. The table below contains the 2010 Census data through January of 2021 populations for the county, cities, and the unincorporated county area.

Source: Department of Finance, Population Estimates Released May 1, 2021 Although the table above shows that all cities within the county have grown, there are a few cities that have shown a slower rate since the past year. The only cite to see a decline in population from 2020 was Turlock that had 2% decrease this past year.

Population growth happens primarily by one of three ways: through migration; the natural growth of the -urban districts. The latest influx of migration is from the Bay Area into the Central Valley. This migration is generally of persons of higher education and Stanislaus County 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Ceres 45,417 45,684 46,019 46,682 46,922 47,381 47,851 48,365 48,498 48,625 48,886 48,901 Hughson 6,640 6,706 6,789 6,865 6,985 7,069 7,087 7,182 7,218 7,231 7,260 7,303 Modesto 201,165 202,370 204,137 206,234 207,739 209,202 211,546 214,233 215,800 217,091 218,440 219,294 Newman 10,224 10,500 10,624 10,656 10,727 10,809 11,057 11,379 11,694 11,921 11,950 11,962 Oakdale 20,675 20,858 21,005 21,260 21,484 21,781 22,118 22,517 22,776 23,033 23,109 23,237 Patterson 20,413 20,585 20,799 20,924 21,111 21,280 21,785 22,247 22,762 23,086 23,150 23,304 Riverbank 22,678 22,844 23,012 23,371 23,522 23,741 24,094 24,734 24,856 25,041 25,133 25,189 Turlock 68,549 69,099 69,779 70,969 71,448 72,247 73,163 74,180 74,495 74,784 75,030 74,820 Waterford 8,456 8,508 8,557 8,621 8,653 8,710 8,752 8,837 8,852 8,855 8,913 8,944 Balance Of County 110,236 110,881 111,455 110,304 110,503 111,544 111,799 113,244 113,338 113,464 113,060 113,014 County Total 514,453 518,035 522,176 525,886 529,094 533,764 539,252 546,918 550,289 553,131 554,931 555,968 Stanislaus County Population Estimates
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 10
technical skills. In recent years, Bay Area residents have been priced out of the San Francisco Bay Area and Silicon Valley, as well Bay Area remote workers taking advantage of relocating to the Central Valley.

These residents have found the benefits of lower residential pricing compared to the Bay Area and even the Sacramento region.

As shown in the table below, population projections indicate that Stanislaus County is expected to increase by 22.3% between 2020 and 2060, or approximately 0.56% per year. Which is twice the rate compared to the overall state projected population at 0.28% per year. Please note, there was a slight discrepancy between the Stanislaus County population estimates presented in the prior table and the following table.

Source: Department of Finance, Population Estimates Released July 2021 Source: Department of Finance, Population Estimates Released July 2021

ECONOMIC PROFILE
The economy of the Modesto MSA provides a desirable mix of jobs for those migrating to the area. The Modesto MSA is an increasingly diverse economy, and its geography has attracted a number of employers and residents to the area in recent years. Per the December 2021 statistics provided by the California followed by educational and health services, and government. The following table shows the leading indust
Estimated
2020 2021 2025 2030 2035 2040 2045 2050 2055 2060
California 39,782,419 39,953,269 40,808,001 41,860,549 42,718,403 43,353,414 43,785,947 44,049,015 44,176,739 44,228,057 0.28% Stanislaus County 555,955 561,951 581,308 606,128 627,883 645,069 658,448 668,224 675,118 680,311 0.56% Area
2020 - 2060
Annual %
Change
Projections
Population Growth Projections
37,000,000
38,000,000
39,000,000
40,000,000
41,000,000
42,000,000
43,000,000
44,000,000
45,000,000
46,000,000
2020 2021 2025 2030 2035 2040 2045 2050 2055 2060

CALIFORNIA & STANISLAUS COUNTY
POPULATION PROJECTION THROUGH 2060
California Stanislaus County
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 11
Source: Employment Development, Labor Market Information Division, December 2021 As shown in the above pie chart, the largest employment industry in the Stanislaus County region is the Trade, Transportation and Utility Industry with 20% of the total employment in the region. The second largest employment industry is educational and health services with 17 employment. This is largely due to the presence of California State University, which contributes significantly to employment within the region. This is followed by the Government sector at 15%.

Major employers in the county are shown next.

Total Farm
8% Mining, Logging, and
Construction
6%
Manufacturing
11%
Trade,
Transportation and
Utilities
20%
Information
Financial Activities 0%
2%
Professional &
Business Services
8%
Educational &
Health Services
17%
Leisure & Hospitality
10%
Other Services
3%
Government
15%

MODESTO MSA EMPLOYMENT BY INDUSTRY
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 12

MAJOR EMPLOYERS

EMPLOYER NAME LOCATION INDUSTRY
Amazon Fulfillment Ctr Patterson Mail Order Fulfillment Service Bartles & Jaymes Co Modesto Wineries (mfrs)
Bronco Wine Co Ceres Wineries (mfrs)
City-Modesto-Police Dept. Bus Modesto Police Departments Conagra Brands Inc Oakdale Food Products (whls)
Del Monte Foods Inc Modesto Food Products & Manufacturers Duarte Nursery Inc Hughson Nurserymen
E & J Gallo Winery Modesto Wineries (mfrs)
Emanuel Medical Ctr Turlock Hospitals
Foster Farms Turlock Poultry Processing Plants (mfrs)
Frito-Lay Inc Modesto Potato Chips (whls)
Health Services Agency Modesto Clinics
Memorial Medical Ctr Modesto Hospitals
Modesto Bee Modesto Newspapers (publishers/Mfrs)
Modesto Irrigation District Modesto Utilities
Oak Valley Hospital District Oakdale Health Care Management Pacific Southwest Container LLC Modesto Corrugated & Solid Fiber Boxes (mfrs) Patterson City Office Modesto Government Offices-City/Village & Twp.

Stanislaus County Health Svc Modesto Clinics
Stanislaus County Welfare Dept. Modesto Government Offices-County Storer Coachways Modesto Buses-Charter & Rental
Sysco Central California Inc Modesto Food Products (whls) Temsa Turlock Nonclassified Establishments
Turlock Irrigation District Turlock Electric Companies
Walmart Modesto Department Stores
Source: Employment Development, st Edition
As can be seen in the chart above Stanislaus County has many hospitals and clinics. There are five health services listed on the chart above. The county has a strong agriculture-based and trade-based economy, evidenced by the vast quantities of wineries and food products within the area.

UNEMPLOYMENT RATE
The following table presents the unemployment rate for The Modesto MSA from 2019 to 2021, with the most current data available. In the graph below shows a steady decline in the unemployment rate over the past year, and significant decline in 2020 following the spike in unemployment in April 2020 due the COVID-19 pandemic.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 13
Source: Employment Development, Labor Market Information Division, December 17, 2021 According to the Employment Development Department, the most current unemployment statistics indicate an unemployment rate of 6.2% in November 2021 for the Modesto MSAs, which is down from a revised 6.9% in October 2021. However, this is higher than the statewide unemployment rate of 5.4%. It is important to note that the unemployment rate has gradually been decreasing since December 2020.

HOUSING TENURE / VALUES
Of the total number of housing units in the region, it is estimated that 55.2% are owner occupied. The balance is renter occupied or vacant as summarized in the following table:

Modesto MSA 2021 Tenure of Occupied Housing Units
Tenure Total Percent
Owner-Occupied 102,467 55.20%
Renter-Occupied 72,104 38.80%
Vacant 11,090 6.00%
Total Units 185,661 100%
Source: STDB Data
As of 2021, the estimated median owner-occupied housing value was $357,378. As shown in the following table, 64.6% of owner-occupied homes have housing values over $300,000. Home prices have been rapidly increasing in the region over the course of the last several years. #1..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 14
Modesto MSA 2021 Estimate of Owner-Occupied Housing Values Value
2021 2026
Number Percentage Number Percentage
<$50,000 4,544 4.40% 2,436 2.30%
$50,000 - $99,999 2,296 2.20% 1,093 1.00%
$100,000 - $149,999 1,926 2.90% 929 90.00%
$150,000 - $199,999 428 4.60% 1,611 1.50%
$200,000 - $249,999 7,735 7.50% 3,717 3.50%
$250,000 - $299,999 14,030 13.70% 8,526 8.00%
$300,000 - $399,999 26,098 25.50% 20,870 19.70%
$400,000 - $499,999 14,526 14.20% 16,558 15.70%
$500,000 - $749,999 14,068 13.70% 22,955 21.70%
$750,000 - $999,999 6,262 6.10% 13,064 12.30%
$1,000,000 - $1,499,999 2,952 2.90% 8,876 8.40%
$1,500,000 - $1,999,999 761 0.70% 1,746 1.60%
$2,000,000 + 1,541 1.50% 3,551 3.40%
Total 97,167 100% 105,932 100%
Estimated Median Housing Value $357,378 $483,187
Source: STDB Data
steady increase in median home prices. Due to Covid-19, the region has seen a recent increase in home prices due to large-scale work at home efforts made by businesses leading to an exodus of people from the Bay Area. The high demand for housing and increase in migration from areas like the Bay Area is continuing to drive home prices in the region. According to Site-To-Do-Business, regional median home prices are projected to increase over 35.2% by 2026.

REGIONAL ANALYSIS CONCLUSION
Stanislaus County is well-positioned with respect to transportation corridors such as north-south running Highway 99 and Interstate 5, to 580, which provides access to the San Francisco Bay area. This county has , and work at
home efforts. These factors have resulted in positive economic growth for the region. With the high demand and the presence of large employment centers, economic conditions continue to improve. The median home prices continue to increase thanks in part to unusually low mortgage rates and rising employment. Although the region in general continues to grow and improve, the cities that are farther from the East Bay region are growing at a slower pace.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 15

NEIGHBORHOOD DESCRIPTION / IMMEDIATE ENVIRONS

GENERAL DESCRIPTION
The subject is located in the western portion of the city of Modesto; it lies west of Turlock, and northeast of the city of Patterson. It is surrounded by primarily agricultural land. The property consists of three parcels, together consisting of 1,999.34± acres of agricultural land. It lies on the San Joaquin River, which lies on the western portion of the southern-most portion of the property.

SUBJECT AREA MAP & LAND USES
ACCESS
The parcel has direct access to W Main Street, which starts just west of the property, and goes well into the city of Turlock. It lies approximately 3 miles east of highway 33. Although the property is technically a part of the city of Modesto, it is not physically contiguous to the rest of the city. It lies northeast to the city of Patterson.

Agriculture
Agriculture
Agriculture
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 16

NEIGHBORHOOD DEVELOPMENT AND MARKET OVERVIEW
The neighborhood for the subject property consists of mostly agricultural properties, with some neighboring rural residential homes existing as well. Although technically owned by the City of Modesto, the land is separated from the main city, and is surrounded by other large agricultural lots of land. Below is an insight to the surrounding population, their median income levels, as well as the median property values. Through this information, the affordability rates of the neighborhood can be observed by using the US affordability index.

HISTORICAL AND PROJECTED POPULATION GROWTH
Population 1-Mile Radius 3-Mile Radius 5-Mile Radius
2026 Projection 0 1,375 22,462
2021 Estimate 0 1,318 21,674
2010 Population 0 1,218 20,070
Annual Growth 2021-2026 0.0% 0.86% 0.72%
Annual Growth 2010-2021 0.0% 0.74% 0.72%
Source: Site To Do Business data
The 1-mile radius of population growth only cover the majority of the subject property due to the fact Therefore, there is a zero population due to the fact that there is no residence on the subject property. Population starts to appear at the 3-mile radius as it reaches the outskirts of the neighbor city of Patterson. However, this number rapidly jumps up when the 5-mile radius is observed, with a population of 22,462. A reason for the sharp increase in population at this point is because past the 3 miles radius from the subject property, boundaries begin for the cities of Patterson, Hatch, and Grayson.

Source: Site To Do Business data
0 20
40 60
80 100
HOUSEHOLD INCOME DISTRIBUTION 3-MILE
RADIUS
2021 2026
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 17
The household income distribution within a 3-mile radius is illustrated above. It is expected to rise significantly by 2026. Household Income is generally evenly spread out amongst the households within a 3-mile radius. It is not skewed in any particular direction. Approximately 19% of households have combined incomes of $50,000-$74,999. The projected income for 2026 shows over 22% of households have a combined income of $100,000-$149,999. The median household income in 2021 is $68,082. This is projected to increase over 16% in 2026, to $79,365.

AGRICULTURE
Nearby land includes a variety of uses, such as almond growing, rural residential structures, as irrigated open land farming. The area is mostly used for row crops, and a variety of crops are planted. The property is located within flood zone AE, which means that the base level is lowered, and there is a higher risk of flooding. However, the soils are generally high within the area, leading the land to have high productive potential.

NEIGHBORHOOD CONCLUSION
The neighborhood primarily consists of large parcels of agricultural land. 3 miles out from the property the residential properties start to appear. However, a significant increase occurs at the 5-mile radius of the subject property. Though the property lies within the city of Modesto, it is geographically separate from the rest of the city. Most of the land nearby is used for agricultural purposes such as almond growing, irrigated open land farming, along with some rural residential properties. #1..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 18

MARKET OVERVIEW

AGRICULTURAL LAND TRENDS
In the northern San Joaquin Valley (Region 3), the 2020 agricultural land market was mostly stable with values driven by water, commodity prices and, of course, the COVID-19 global pandemic. Buyers were increasingly more thoughtful about purchasing property with secure water rights. Implementation of the Sustainable Groundwater Management Act (SGMA) has had varied effects on Region 3, with its largest impact seen in Merced first round of
Groundwater Sustainability Plans (GSPs), for basins classified as critically over-drafted, has now come and gone while the deadline for the second round of GSPs, for all other high- and medium-priority basins, is rapidly approaching in 2022. While neither the San Joaquin nor Delta Mendota sub-basin drafts in Region 3 explicitly limit the amount of groundwater, which can be pumped initially, future reductions in groundwater extraction will likely be needed to bring these sub-basins into compliance. However, how that will be accomplished and monitored remains unknown. Groundwater Sustainability Agencies (GSAs) will likely take control over new well-drilling permits. continued to experience historically
low crop prices in 2020. Land values remained mostly stable for these land types, though prices softened slightly for almonds in federal districts or solely reliant on pumped groundwater.

While the pandemic had little effect overall on demand and value for most land uses in Region 3, it did impact the wine grape industry, beef cattle prices, smaller rural residential properties and the dairy industry. The pandemic changed consumer habits in unprecedented ways: disrupting restaurant consumption, restricting tourism, and affecting myriad supply-chains for Region As the purchase of agricultural real estate is typically a long-term investment, Region 3 has proven mostly inelastic to the effects of the pandemic
One year ago, the wine industry was flooded with excess wine and most wineries were planning too heavily push inventory sales and cut back on production of the 2020 vintage. Grape producers were also planning on a light harvest due to less robust demand, and some were still actively marketing custom bulk wine from the 2019 vintage. An early frost, the COVID-19 pandemic, and wildfires proved to have a significant impact on the industry and tested its ability to adapt.

Multiple years of improving wine sales helped prop up many different business models. Many wineries expanded from traditional winery-to-distributor models to include direct-to-consumer sales, tasting rooms, event and hospitality offerings and virtual wine clubs. These newer business models created additional income streams, but the COVID-19 pandemic stressed many of these ventures. In particular, the pandemic hurt business models that heavily depended on, on-premise sales via tasting rooms, events, and hospitality offerings. As the pandemic spread, consumers quickly became homebound and were largely unable to travel to wineries and tasting rooms, which were in any case closed by the State. Some #1..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 19
travel and dining restrictions were eased in the third quarter, but consumer mobility remained well below pre-pandemic levels.

As of December 1st, consumer spending on accommodations and food services was about 40 percent below pre-pandemic levels. Likewise, income for businesses in the leisure and hospitality industry was less than half of pre-pandemic levels. At the grower level, wineries have begun to offer some new grape contracts. Vineyard sales were limited in 2020. A few late-life vineyards without grape contracts in the Central Valley have sold; however, prices appear to be near open land values with buyers intending to remove the vineyards. That said, there were a couple of sales of viable vineyards, which exhibited contributory value above open ground. Most in the area believe that vineyard values are roughly stable to slightly lower than 2019 with potential upside in 2021.

Generally, cropland leases in Region 3 are stable with strong demand, due to a decreased supply caused by widespread development of permanent plantings over the past decade. Furthermore, increased land values command higher rents from landlords in order to turn a profit. For fertile farmland with reliable #1..
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irrigation sources, annual rents typically range from $300 to $600 per acre. Sweet potato leases in the sandy soil area of northern Merced Irrigation District and southern Turlock Irrigation District still bracket the upper end of the range for cropland leases. These rental rates are stable, with the upper end of the range around $800 per acre per year. West-side properties with marginal soil quality and water availability bracket the lower end of the range, though lease rates can also vary significantly, as they are dependent on highly variable water clauses
The market for cropland in the central and southern portions of Region 3 continues which includes Stanislaus County, are driven by water availability and permanent planting adaptability. Land located in districts with strong water rights, lowest water costs and best delivery histories (east side districts) command the highest price. Properties that are solely reliant on pumped groundwater or are located within federal west-side irrigation districts define the lower end of the range in value. #1..
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IDENTIFICATION OF LARGER PARCEL / PROPERTY DESCRIPTION

DETERMINATION OF LARGER PARCEL
The process of determining the involves the
multiple properties, a whole property or portion of a property that has unity of ownership, unity of use, and contiguity.

Ownership records for surrounding properties have been reviewed and the city of Modesto has no title interest in any parcels contiguous to the subject. Therefore, the subject parcel proposed to be impacted by the Modesto Levee Repair
1,999.34± acre property, identified as APNs: 022-001-005, 022-004-001, 058-001-001.

IDENTIFICATION OF PARCEL OWNERSHIP
Property Address City of Modesto
Assessor Parcel Numbers 022-001-005, 022-004-001 & 058-001-001 Owner City of Modesto
Mailing Address PO Box 642
Modesto, California 95353
Owner Title of Interest Fee Simple
Ownership History No transactions within 5 years on
subject property
Date of Inspection March 16, 2022
Date of Value March 16, 2022
Date of Report March 18, 2022
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PS
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PS (CONTINUED)
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AERIAL PHOTOGRAPH
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LARGER PARCEL DESCRIPTION
Size 1,999.34± acres
Shape Irregular
Frontage W Main Street, W Monte Vista Avenue and Jennings Road Access W. Main Street, Jennings Road, W Fulkerth Road and W Monte Vista Avenue.

Topography Slightly sloping in some areas, generally level in most areas Soils The subject property is composed of 75.2% Class II irrigated soils and 24.8% Class III irrigated soils. The soil types consist of Columbia loam, Columbia silt loam,
Columbia fine sandy loam, Temple loam, Temple silty clay loam.

Utilities Currently the water treatment plant provides treated water for irrigation purposes to the surrounding land. If under private ownership, riparian rights could be acquired and the subject could be reconnected to the Turlock
Irrigation District. The installation of wells and irrigation pipe are possible under private ownership.

Zoning AG-40
Special Plan None
General Plan Designation Agriculture
Improvements None
Permits None
Easements / Encroachments A preliminary title report was not provided for review.

We assume there are no encumbrances or exceptions to
title that negatively affect the utility or marketability of the subject, or its ability to be put to its highest and best use (please refer to Extraordinary Assumption #1).
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However, (Grant Deed, 2011-0063886, Recorded August 3,
2011) states Parcel 058-001-001 has a Memorandum of
Understanding (MOU) between the City of Modesto and
Stanislaus County regarding the annexation of Jennings
Road, and Jennings Road Wastewater Treatment Plant
Facility.

Private Restrictions None
Flood Zone The subject property lies in Zone AE. This designation is for areas of Special Flood Hazard Area (SFHA), usually
depicted as base flood or 100-year flood level. FEMA Flood Map Community Panel No. 06099C0540F, date
08/24/2021.

Wetlands None known to exist on the subject property
Seismic Information As verified through the California Department of Conservation website the subject property is not within an earthquake fault zone and has not been evaluated for
liquefaction hazards or landslide hazards. However, 6
miles west of the subject property is a late quaternary inferred fault line.

Because Stanislaus County and most of the state of
California is a seismically active region, the potential for earthquake-induced hazards must be acknowledged.

Current engineering design and construction practices,
such as the Uniform Building Code, provide the
opportunity to reduce earthquake related hazard.

Cultural Recreational and Historic SignificanceNone
Toxic Hazards We were not provided with a Phase I environment assessment for this appraisal. The appraisers are not
experts in this field and are not qualified to detect or advise on similar matters. This appraisal therefore
assumes that there is no toxic contamination on the
subject property.
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Property Tax Data and Projected Taxes The City of Modesto is exempt from property taxes, which includes
show a tax rate of 1.1225870% for the area. The subject is assessed direct levies, which total of $8,517.80 for the 2020-2021 tax year.

OVERALL COMMENTS
The larger parcel consists of 1,999.34± acres, which is considered a large parcel, located northeast of the City of Patterson, with West Main Avenue running east to west through the subject property. Directly west of the subject property is the San Joaquin River running north to south adjacent to the levee located on the subject property. Surrounding properties are other large parcels of agricultural land. #1..
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PROJECT DESCRIPTION AND PROPOSED ACQUISITION

DESCRIPTION OF THE PROJECT
The city of Modesto is seeking funds to construct level improvements to existing levee improvements on the subject parcels.

The city of Modesto project will require a fee acquisition totally 19.63. The purpose of the fee acquisition is to expand five sections of the levee located on the larger parcel adjacent to San Joaquin River for the prevention of any flooding in the area.

DESCRIPTION OF THE PROPOSED ACQUISITION
Along the San Joaquin River, five sections of the existing levee require improvement and repairs.

A summary of the planned acquisition follows:

Item Total
Larger Parcel 1,999.34± Acres (87,091,250± Square Feet) Fee Acquisition Requirements 19.63± Acres ( 855,083± Square Feet) Remainder Parcel 1,979.71± Acres (86,236,167± Square Feet) Source: Stanislaus Map, plat, and legals provided
supported by field inspection. Maps detailing the proposed encumbered easement can be seen on the following page.
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ACQUSITION EXHIBIT
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DESCRIPTION OF THE REMAINDER
The proposed fee acquisition is to acquire a portion of the subject larger parcel for the re-construction and repair of the existing San Joaquin River Levee at the westerly end of the larger parcel size will be slightly altered and reduced to 99.02% of its original size. The proposed fee acquisition will not negatively affect the property value and the subject will still be conducive to its existing agricultural use.

The remainder parcel will retain its utility, and its highest and best use will not be affected. Given highest and best use consideration and construction of the project as proposed, the utility and desirability of the parcel will not be adversely affected. The remainder parcel will not suffer any damages and will receive no benefits as a result of the proposed acquisition.
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HIGHEST AND BEST USE ANALYSIS
Highest and best use may be defined as the reasonably probable use of property that results in the highest value.

There are four criteria used in the highest and best use analysis process. These are:

1. Legally Permissible Use
What uses are permitted legally under existing zoning, building codes, historic district controls, environmental regulations, deed (private) restrictions, and long-term lease provisions on the site in question?

2. Physically Possible Use
What uses of the site are physically possible, given its size, shape, area, terrain, soils composition, accessibility, assembly potential, and risk potential from natural disasters?

3. Financially Feasible Use
Which possible and permissible uses will produce a positive net return to the owner of the property?

4. Maximally Productive Use
Among the feasible uses, which use will produce the highest residual land value consistent with the rate of return warranted by the market for that use? Since improved properties sometimes do not, in fact, contain the improvements that would generate the greatest return to the land, the highest and best use of the land as if it were vacant, as well as the highest and best use of the property as it is currently improved, normally are considered. In extreme cases, this analysis will call into question whether the existing improvements should be preserved. Usually, however, the analysis shows that if a property is already improved, the continuing use of the existing improvements yields more total return to the land than does the razing of the improvements in favor of alternative uses.

Given that there are no structural improvements on the subject, only the highest and best use as if vacant is applicable.
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HIGHEST AND BEST USE, AS VACANT

LEGALLY PERMISSIBLE USES
The larger parcel is publicly owned for the purposes of analysis we will consider its alternate economic use. The subject property would most likely take on the legally permissible properties of surrounding land for agricultural use (A-2.40). Which includes all agricultural uses, single-family dwellings, mobile homes, buildings and appurtenances for custom contract harvesting, temporary agricultural service airports, detached accessory buildings, and lagoons or ponds for storage of animal waste. Considering the subject would take on a similar zoning if under private ownership all uses allowed under the A-2.40 zone are considered legally permissible for this analysis.

PHYSICALLY POSSIBLE USES
The size, topography, and location of the subject are important factors in determining the use of the property. The size of the site can have a significant effect on the type of development that is possible and on the economies of scale. The larger parcel is 1,999.34± acres, is irregular in shape and has good road frontage and access. The size and shape of the parcel support a wide variety of agricultural uses permitted by right under the AG-40 zoning. According to the U.S.D.A. Natural Resources Conservation Service, the irrigated soils are of mostly irrigated Class II with some Class III soils. Surrounding uses consist primarily of irrigated row and field crop and newly developed orchards. Exposure to a water treatment plant located directly north of the larger parcel may limit the possibility of permeant trees in the foreseeable future.

Currently there are no riparian rights associated with the property; however, they could be acquired and reconnected to the Turlock Irrigation District through the counties permit process. The installation of wells and irrigation pipe are possible under private ownership. The subject legally and physically supports agricultural use for row and field crops.

FINANCIALLY FEASIBLE / MAXIMALLY PRODUCTIVE USES
The proposed property improvement must be able to deliver an income return that generates the market value sufficient to pay for the developmental costs, the risks involved, and profit appropriate for the type of development. There has been reasonable demand for agricultural properties in this market. Therefore, development of an agricultural use is considered financially feasible.

Based on market research, row and field crop use typically requires average quality soil, and farmers will pay less for land that does not have orchard potential. Demand remains moderate for vacant land suitable for row and field crop development. As will be seen in the Sales Comparison Approach, many properties that have historically been farmed as field and row crop use are being purchased for field and row crop use when orchard use is not physically possible. Recent local sales of land that can be developed into field and row crop use support the financially feasible use of the subject larger parcel for field and row crop development. Thus, the most likely financially feasible and maximally productive use of the subject property is for the continued use of field and row crop use. #1..
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HIGHEST AND BEST USE CONCLUSION, AS IF VACANT
Considering all the preceding factors, it is concluded that the highest and best use of this site, as if vacant, is for field and row crop use.

HIGHEST AND BEST USE OF THE REMAINDER
In the after condition, the remainder parcel will retain its former shape and utility. The fee acquisition will be generally situated along the west side of the larger parcel and will not detrimentally affect areas outside of the fee acquisition. Further, the acquisition will have no impact to the remainder properties in terms of access or utility of the property. The highest and best use of the subject larger parcel remainder, after the acquisition, is for continued agricultural use. #1..
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VALUATION

VALUATION PREMISE
The opinion of value will be developed in accordance with accepted valuation principles, consistent with California eminent domain law (Code of Civil Procedure 1230.010). Every effort has been made to conform to The Uniform Relocation Assistance and Real Property Acquisition Policies Act, 1970 as amended; the Uniform Standards of Professional Practice (USPAP) of the Appraisal foundation; and Standards of Professional Practice of the Appraisal Institute, which fully incorporate the Uniform Standards of Professional Practice (USPAP).

The three recognized approaches to value are the Sales Comparison Approach, the Income Approach and the Cost Approach. We have utilized the Sales Comparison Approach to develop the opinion of the fair market value for the larger parcel and the remainder parcel(s). The Sales Comparison Approach compares similar properties that have recently sold in the market area to the larger parcel and is usually the preferred method of valuation. The development of the Income and Cost Approaches are not necessary for credible assignment results and the valuation of the larger parcel is not weakened by the exclusion of the Income and Cost approaches.

VALUATION OF THE LARGER PARCEL (LAND ONLY)
The initial stages of the appraisal process include the investigation, organization, and analysis of relevant market data and other information that relates to the value of the subject property. By searching public records and interviewing buyers, sellers, real estate agents, and others, we have found data pertaining to sales of properties reasonably comparable to the subject property.

SALES COMPARISON APPROACH
The Sales Comparison Approach compares similar recent land sales in the market area to the larger parcel.

We focused our search for recent sales of similar agricultural land sites in the immediate neighborhood of the subject. The following sales were considered meaningful in providing an indication of value for the subject property. Properties on par with the size of the subject property are extremely rare, so a search of sales of 100 acres and over was conducted. According to brokers in the area, agricultural land sizes in this range have little to no impact. A map and summary of the comparable sales are presented as well. #1..
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COMPARABLE LAND SALES SUMMARY TABLE AND MAP
Sale #
DC #
Location
APN No. (s)
Seller
Buyer
Sale
Date
Doc #
Sale Price Zoning Soils Water Flood
Zone
Size
Acres
Price /
AC
LS-1
6179
Southwest Corner of County Road 35
and County Road 106
Davis, CA
APNs: 033-130-011, -010, 033-150-008 RD Heer Capital LLC Martin E Pierucci, Kathryn Marie Beltrami 12/16/2021
0046664
$13,380,000 A-P

67.6% Class I, 25.6% Class II, 6.7% Class IV North Delta Water Agency District Deep
Agricultural Wells AE 1,234± $10,842
LS-2
1411
Simmons Road Crows Landing, CA
APN: 058-022-041, -044, -050, -051
Hawkins, Carol Jean; Oscar B Heard 2021 Revocable Trust Wendel K Trinkler Jr, Heide A Trinkler 8/3/2021 0073162
$4,251,000 A-240
22% Class II, 78% Class III Turlock Irrigation
District Deep
Agricultural Well AE 218± $19,500 LS-3
5600 NEC Avenue 56 & Highway 43
Earlimart, CA
APNs: 313-020-001, -002,
-003, -004, -005, -006, -007, -010,
313-050-004, -008,
-012, 322-240-002, -003, &
322-250-001
The Gabriel and Martha Pacheco Trust Santokh S Toor and Arpinder K Toor 2011 Living Trust
3/12/2020
0015057
$19,000,000 AE-40

49.5% Class I, 50.5% Class II Pixley Irrigation
District Deep
Agricultural Wells A 2,397.92± $7,924
LS-4
1410
19422 W Clifton Court Road
Tracy, CA
APN: 189-040-120
J A L Farms Inc; Lund, Peter Grant Lund Ranch LLC
10/7/2019
113500
$18,957,400 AG-80
33% Class II, 67% Class III Riparian & Pre 1914 Water Rights from Old River & Grant Line Canal AE 1,354± $14,000 LS-5
5599 Avenue 144
Tulare, CA
APNs: 291-040-009,
291-050-027, 293-040-036,
293-040-041, -042 Bosman Girls LP and Clarence Bosman Western Farmland LLC 2/14/2018
0007357
$19,200,000 AE-40 100% Class II Tule River Irrigation District Deep Agricultural Wells X 1,150.48± $16,689
Subject
City of Modesto, CA
APNs: 022-001-005, 022-004-001, 058- 001-001 Appraisal --- --- AG-40

75.2% Class II 24.8% Class III AE 1,999.34± ---
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BRI 21-236 36

DISCUSSION OF SALE COMPARABLES
This analysis identifies the similarities and differences between subject and comparable properties. The primary elements of comparison include property rights, financing terms, water access, soil types, conditions of sale (motivation), market conditions (sale date), and physical characteristics (e.g. zoning, utilities, site improvements, location, access, etc.).

The quantitative adjustment process involves paired sales analysis that compares two or more market sales to derive an indication of the size of the adjustment for a single characteristic and applies it to the applicable data. A significant amount of relevant data is required to derive the adjustments and only limited data was available. Recognizing the weaknesses inherent in a quantitative analysis, a qualitative technique can be used. More specifically, a ranking or bracketing analysis is employed. The comparables are then analyzed to determine the relative position of the subject property within the comparable data array.

Comparable Land Sale 1
This is the sale of 1,234± acres of agricultural
land. This property is located on County Road
106, in Davis, California. The property sold on
December 16, 2021 for $13,380,000, or
$10,842 per acre. This was an all-cash
transaction and there were no sales
conditions. It is zoned for A-P, which means
that it is agricultural intensive. LS-1 has fifteen
separate planting blocks, all which are planted
to either row or field crops (predominantly
planted to hay). Of importance, 476 acres of this property is located within the Yolo Bypass and has a flowage easement on its surface. Per discussions with the listing broker, these 476 acres (39%) could not be planted to any permanent plantings. The property has nine deep agricultural wells, eight of which are in working condition. Additionally, the southern portion of the site is in Tier 3 of the North Delta Water Agency District; however, there is no delivery system currently available. This property falls within flood zone AE. The soils consist of 67.6% Class I, 25.6% Class II, 6.7% Class IV soils.

LS-1 has 476 acres subject to a flowage easement, which prevents permanent plantings not unlike the . While similar in effect, the flowage easement is more restrictive and hence this is an inferior trait. LS-1 has primarily class I soils which are superior to the subject property. Considering these characteristics, the superior traits slightly outweigh the inferior making this sale a superior indicator of value for the subject and a value below $10,842 per acre is considered appropriate.
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BRI 21-236 37
Comparable Land Sale 2
This is the sale of 218± acres located on the
north side of Simmons Road, south of Linwood
Avenue, in Crows Landing, Ca, approximately
5-miles east of Patterson, California. Access to
Interstate 5 is available 8.5± miles west at the
Sperry Avenue Interchange. The immediate
neighborhood consists of agricultural
properties, generally between 40-acres and a
quarter section (160-acres) in size that are
either row-crop or orchard. The property sold
on August 3, 2021 for $4,251,000, or $19,500 per acre. The buyer used owner financing and purchased the property to continue growing row crops. The owner financing did not have a significant impact on the sales price.

According to the listing agent, Tim Jones, this property sold at market value. L-2 was on the market for 8 months listed at $4,796,000. This property has one well, and district water was available from the Turlock Irrigation District, but does not have any riparian water rights. There were no improvements on the property at the time of sale. The soil is composed of 22% Class II and 78% Class III soils. It lies within flood zone AE.

LS-2 has soils, which are very similar to that of the subject property. In addition, it lies within flood zone AE, which puts the property in the same flood zone as the subject. LS-2 is significantly smaller than the subject at 218± acres, which makes the price per acre significantly higher due to the significant size difference. This comparable was included due to the close proximity to the subject and the lack of sales of large parcels over 1,000 acres. Overall, LS-2 is superior to the subject property. #1..
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Comparable Land Sale 3
This sale is 2,397.92±-acres of agricultural land
located on the north side of Avenue 56, east
of Highway 43, in an unincorporated area of
Tulare County, approximately 6-miles west of
Earlimart, California. Access to Interstate 99 is

5.5-miles east via Avenue 56. The property
sold on March 12, 2020 for $19,000,000, or
$7,924 per acre. Accord to the listing agent,
this was an all-cash transaction. However, the
buyer obtained an $18,561,300 loan
consolidated with other owned properties, and that there were no atypical sale conditions. The immediate neighborhood consists of agricultural properties, generally between 40-acres and a quarter section (160-acres) in size that are either row-crop or orchard.

According to the listing agent, improvements included three residences and an old workshop, which added nominal value to the sale. LS-3 was previously irrigated by the Pixley Irrigation District, a Class II district with lower surface water allocations, and several deep wells. The irrigation distribution system has been ripped out as the buyer is planting almond and pistachio trees. The groundwater supplies along Deer Creek are average according to the listing agent. The property had historically been planted to row crops.

The property is in FEMA Flood Zone A (1% annual flood hazard, up to 3 feet of depth, Map 06107C1900E).

The property is generally level, with slopes ranging between flat and 1%, and irrigated soil is 49.5% Class I, and 50.5% Class II.

This property has excellent soils. However, the irrigation distribution system has been removed and groundwater supply is average, which makes this property very similar to the subject as it needs installation of wells and irrigation pipe to restore access to water. Overall, LS-3 is slightly inferior to the subject and a value above $7,924 per acre is considered appropriate. #1..
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Comparable Land Sale 4
This is the sale of 1,354± acres of Agricultural
property, located in Tracy California. The
property lies north of Grant Line Canal, and
south of Clifton Court Road, approximately
13 miles west from Interstate 5 in Stockton.

LS-5 sold in the October 7, of 2019 for
$18,957,500, or $14,000 per acre. This was
an all-cash transaction with no unusual sale
conditions. This property has riparian & pre1914 water rights and receives water from the Old River and Grant Line Canal.

Improvements include a house, barn, and shop. According to the listing agent, these improvements added nominal value to the sale. The property also has access to electricity, and the road surface is paved. The property has 33% Class II soils, 67% Class III soils. It lies within flood zone AE.

This property has soils classes, which are somewhat inferior to that of the subject property. The improvements associated with this sale are considered superior to the subject property. LS-4 receives water from the Old River, Grant Line Canal, and has riparian & pre-1914 water rights. The source of water to this property are significantly superior to the subject property. Overall, LS-4 is superior to the subject property and a value below $14,000 per acre is considered appropriate.

Comparable Land Sale 5
This is a sale of four non-contiguous parcels
totaling 1,150.48± -acres of agricultural land
located at Avenue 144, in Tulare, California,
approximately 2-miles west of Tipton,
California. The property in on the southern
side of Avenue 144 and east of the Homeland
Canal. The property sold on February 14, 2018
for $19,200,000, or $16,689 per acre. The
immediate neighborhood consists of
agricultural properties, generally between 40-
acres and quarter section (160-acres) in size that are either row-crop or dairy related.

According to the listing/selling agent, this sale was at market value, all-cash transaction with no atypical sale conditions. The existing improvements added no value to the sale since the residence was parceled out. The remaining employee shacks were bulldozed by the buyer. According to the seller, irrigation water is available from two sources, first the Lower Tule River Irrigation District and second ground water along #1..
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the Tule River aquifer from approximately 15 deep wells with a 250-horsepower pump. Charlene Williams stated that the buyer has planted pistachio tress. The property is generally level, with slopes ranging between flat and 1%, and irrigated soil is 100% Class II. This property falls within flood zone X, unshaded, within minimal flood risk.

The soil classes of LS-5 are slightly superior with 100% class II soils, where the subject property contains some class III soils. In addition, the source of water of LS-5 belongs to a strong irrigation district with deep agricultural wells. It is important to note that the subject property needs installation of wells and irrigation pipe to sufficiently irrigate it, and there are several limitations on what can be planted on the property.

It has historically been irrigated with water from the water treatment plant. Due to this, the irrigation system for LS-5 is superior as compared to the irrigation system for the subject property. In addition, the flood zone is superior to that of the subject property. Overall, this property is superior to the subject property and a value below $16,689 per acre is considered appropriate.

LAND VALUE CONCLUSION
Based on the previous discussion, the sale comparables indicate a bracketed range for the subject from approximately $7,924 per acre to $10,842 per acre as shown in the following table.

Comp No.

Subject Value
Less Than /
Greater Than
Sale
Price/AC
Sale
Date
Parcel Size
(Acres)
LS-2 < $19,500 / AC 8/3/2021 218±
LS-5 < $16,689 / AC 2/14/2018 1,150.48±
LS-4 < $14,000 / AC 10/7/2019 1,354±
LS-1 < $10,842 / AC 12/16/2021 1,234±
Subject Range from $7,924 per AC to $10,842 per AC
LS-3 > $7,924 / AC 3/12/2020 2397.92±
The subject is bracketed by Sales 1 and 3, which indicated a bracketed range of $7,924 and $10,842 per acre. However, Sale 3 is given more weight due to similarity to the subject, being in size and water availability. Considering this, a value closer to Sale 3 is considered appropriate. Therefore, we conclude with a value of $9,000 per acre for the subject property.

VALUE OF THE LARGER PARCEL (LAND ONLY)
1,999.34± AC X $9,000/AC = $ 17,994,060
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VALUE OF THE PROPOSED ACQUISITION
LAND
The property, rights, and/or interests being acquired from the larger parcel is valued based on its contributory value as part of the larger parcel. The proposed fee acquisition area does not appear to be encumbered with any existing easements based on the plat and legal and preliminary title report provided. The unit value of the subject was previously determined to be $9,000 per acre. The value of the fee acquisition is presented next.

Value of the Proposed Acquisition (Land)

19.63± AC X $9,000 /AC = $ 176,670

SITE IMPROVEMENTS
The proposed fee acquisition has no impact to the improvements on the larger parcel.

TOTAL VALUE OF THE PROPOSED ACQUISITION
The total value of the proposed acquisition, which includes the land and the site improvements within the acquisition area, is presented below:

Value of the Proposed Fee Acquisition:

Land $ 176,670
Site Improvements $ 0
Total $ 176,670

VALUE OF THE REMAINDER AS PART OF LARGER PARCEL (LAND ONLY) The value of the remainder as part of the larger parcel is its contributory value to the larger parcel.

Deducting the part acquired (land) from the value of the larger parcel, land only, yields:

Land ($17,994,060- $176,670) $ 17,817,390
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 42

VALUE OF THE REMAINDER, AFTER ACQUISITION, BEFORE BENEFITS The appraisal process requires valuation of the remainder parcel as a separate and distinct parcel considering all the market forces that indicate a diminution in value to the remainder property. No severance damages or quantifiable benefits to the property are anticipated due to the proposed project 1,979.71± acres of planted row crop land. The Sales Comparison Approach was utilized to develop an opinion of the fair market value of the remainder. Overall, the proposed acquisition does not negatively impact the utility, desirability, or marketability of the remainder.

Value of the Remainder, After Acquisition, Before Benefits 1,979.71± AC X $9,000/AC = $ 17,817,390

SEVERANCE DAMAGES
Based upon the preceding analysis, the proposed acquisition does not adversely affect the utility, desirability or marketability of the remainder property. The remainder as valued above is compared to the remainder as part of the larger parcel.

LOSS IN MARKET VALUE
Value of the Remainder as Part of the Larger Parcel $ 17,817,390 Value of the Remainder After Acquisition, Before Benefits - $ 17,817,390 Loss in Market Value $ 0

CONSTRUCTION CONTRACT WORK
The construction work will require some trees to be removed next to the levee during construction by the contractor. It will not have a significant impact to the marketability of the subject property. Therefore, no value was given to any trees that will need to be removed during construction.

SEVERANCE DAMAGE SUMMARY
Loss in Market Value $ 0
Cost to Cure - $ 0
Total Severance Damages $ 0

VALUE OF THE REMAINDER, AFTER ACQUISITION, CONSIDERING BENEFITS The appraisal process requires the valuation of the remainder as a separate and distinct parcel considering all the market forces that indicate any increase in value to the remainder property. The value of the remainder after acquisition considering benefits is:

Value of the Remainder, After Acquisition, Considering Benefits 1,979.71± AC X $9,000/AC = $ 17,817,390
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 43

BENEFITS
Under California eminent domain law, any potential benefits to the remainder can only be used to offset damages to the remainder. The proposed project may benefit the general market area but provides no quantifiable benefits to the larger parcel in the after condition; no benefits inure to the remainder due to the expansion of the transfer station.

GAIN IN MARKET VALUE
Value of the Remainder, After Acquisition, Considering Benefits $ 17,817,390 Less: Value of the Remainder, After Acquisition, Before Benefits - $ 17,817,390 Gain in Market Value $ 0

OPINION OF THE FAIR MARKET VALUE
Fee Acquisition (Land and Site Improvements) $ 176,670
Net Severance Damages $ 0
Total $ 176,670
Rounded $ 177,000
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 44

APPENDIX
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236

APPRAISER CERTIFICATIONS
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236

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

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

2. The analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased and professional analyses, opinions and conclusions.

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

4. I have neither appraised nor provided any service pertaining to the subject property in the past three years.

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

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

7. 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.

8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.

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

11. As of the date of this report, I have completed the continuing education program of the Appraisal Institute.

12. I did make a personal inspection of the property that is the subject of this report.

13. I have not revealed the findings and results of this appraisal to anyone other than the proper officials of the client and I will not do so unless and until authorized by the client, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings.
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- 84 -
Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236

14. Such appraisal has been made in conformity with the appropriate California laws, Title VI of the 1964 Civil Rights Act, and regulations, policies, and procedures applicable to appraisal of right of way.

15. To the best of my knowledge, no portion of the value of the property appraised consists of items which are non-compensable under the established laws of California. It is my understanding that federal funds may be involved in the project that pertains to the subject of this report.

16. Rob Reid provided significant assistance in the preparation of this report including: determination of the appraisal problem, collection and analysis of the data, highest and best use analysis, valuation analysis, and the reconciliation in this report under the direct supervision of the undersigned.

17. My opinion of the total fair market value of the appraised property identified in this report was derived without collusion, coercion or direction as to value.

Ross Campbell
Certified General Real Estate Appraiser
California Certificate No. 3003418
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236

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

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

2. The analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased and professional analyses, opinions and conclusions.

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

4. I have neither appraised nor provided any service pertaining to the subject property in the past three years.

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

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

7. 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.

8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.

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

11. As of the date of this report, I have completed the continuing education program of the Appraisal Institute.

12. I did not make a personal inspection of the property that is the subject of this report.

13. I have not revealed the findings and results of this appraisal to anyone other than the proper officials of the client and I will not do so unless and until authorized by the client, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236

14. Such appraisal has been made in conformity with the appropriate California laws, Title VI of the 1964 Civil Rights Act, and regulations, policies, and procedures applicable to appraisal of right of way.

15. To the best of my knowledge, no portion of the value of the property appraised consists of items which are non-compensable under the established laws of California. It is my understanding that federal funds may be involved in the project that pertains to the subject of this report.

16. Rob Reid provided significant assistance in the preparation of this report including: determination of the appraisal problem, collection and analysis of the data, highest and best use analysis, valuation analysis, and the reconciliation in this report under the direct supervision of the undersigned.

17. My opinion of the total fair market value of the appraised property identified in this report was derived without collusion, coercion or direction as to value.

David C. Houghton, MAI
Certified General Real Estate Appraiser
California Certificate No. AG039402
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236

APPRAISER QUALIFICATIONS
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

December 04, 2023
Date: November 6, 2023
TO: Economic Development Committee
Sue Zwahlen, Chair
Chris Ricci, Vice-Chair
Eric Alvarez, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: William Wong, Director of Utilities
SUBJECT: Amendments to the On-Call Engineering Consultant Agreements CONTACT: Jeff Daniels, Acting Wastewater Manager, [email protected], 209-577-6255
DESCRIPTION:

Consider the First Amendments to the On-Call Engineering Consultant Agreements with Brown & Caldwell, Carollo Engineers, and Hazen and Sawyer, and the Second Amendments to the On-Call Engineering Consultant Agreements with Black Water Consulting Engineers, Inc., West Yost Associates, and Woodard & Curran, to remove the annual “not to exceed” language and forwarding to Council for approval. (Funding Source: Sewer Fund and Storm Drain Fund) STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2020-2025 Strategic Plan Initiatives: Provide safe, efficient and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.

BACKGROUND:

The City of Modesto Wastewater Division is comprised of multiple sections including Operations, Maintenance, Collections, Environmental Compliance, Laboratory Services, Stormwater Collections, and Stormwater Compliance. Each section is highly specialized, contributing to the dynamic nature of the Wastewater Division and often requires technical support from consultants with equally specialized levels of expertise.

On February 25, 2020, by Resolution No. 2020-111, Council approved agreements with six (6) consulting firms for On-Call Engineering services, not to exceed an annual cost of $200,000 for Sewer Fund (4210), and $100,000 for Storm Drain Fund (4480), and a total combined cost not to exceed $1,000,000 for Sewer Fund and $500,000 for Storm Drain Fund over five (5) years.

The Wastewater Division currently holds contracts with six (6) consulting firms. These consultants are encompassed under the Wastewater Division’s On-Call Engineering #2..
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Economic Development Committee, December 4, 2023
Amendment to the On-Call Engineering Consultant Agreements

Consultant Agreement and provide a broad range of technical expertise, allowing City staff to select the most qualitied consultant to help Staff make informed decisions regarding the City’s wastewater treatment operations, wastewater and stormwater collection system, as well as meeting and maintaining permit compliance.

DISCUSSION:

Due to the complex nature of the tasks performed by the Consultants, projects often expand multiple agreement years, and the resulting services are charged to the City as they are completed in real time. This has posed complications over the life of the agreement due to the original verbiage limiting the allowable spend in each Agreement year. As a result, Wastewater has had to defer projects to a later time, in some cases by multiple years.

The Wastewater Division has several pending projects, necessary for evaluating the current system and adjusting treatment to meet both demand as well as address critical infrastructure limitations while aligning with the City’s new Waste Discharge Requirements for Land Application.

Based on this, staff recommends removing Section 3, Paragraph 1, COMPENSATION of the original Agreement and replace with verbiage not limiting the annual agreement spend while maintaining the previously approved five-year spend limits.

FISCAL IMPACT:

This item was previously approved by Council and services are currently budgeted in the Sewer and Storm Fund FY24 budget. No additional Fiscal Impact will result from this amendment.

WASTEWATER AGREEMENT EXPENDITURES:

Agreement Year Date Range Current Allowed Spend Actual Spent Year 1 2/25/2020 – 2/24/2021 $200,000 $52,284
Year 2 2/25/2021 – 2/24/2022 $200,000 $113,972
Year 3 2/25/2022 – 2/24/2023 $200,000 $152,327
Year 4 2/25/2023 – 2/24/2024 $200,000 $35,582
Year 5 2/25/2024 – 2/24/2025 $200,000 $0
TOTAL $1,000,000 $354,165
REMAINING $645,835
STORMWATER AGREEMENT EXPENDITURES:

Agreement Year Date Range Current Allowed Spend Actual Spent Year 1 2/25/2020 – 2/24/2021 $100,000 $91,996
Year 2 2/25/2021 – 2/24/2022 $100,000 $18,809
Year 3 2/25/2022 – 2/24/2023 $100,000 $0
Year 4 2/25/2023 – 2/24/2024 $100,000 $0
Year 5 2/25/2024 – 2/24/2025 $100,000 $0
TOTAL $500,000 $110,805
REMAINING $389,195
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Economic Development Committee, December 4, 2023
Amendment to the On-Call Engineering Consultant Agreements

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the First Amendment to the On-Call Engineering Consultant Agreements with Brown & Caldwell, Carollo Engineers, and Hazen and Sawyer, and the Second Amendment to the On-Call Engineering Consultant Agreements with Black Water Consulting Engineers, Inc., West Yost Associates, and Woodard & Curran, to remove the annual “not to exceed” language and forwarding to Council for approval.

Approved by:

William Wong, Director of Utilities
Joseph P. Lopez, City Manager
Attachments:

1. First Amendment – Brown and Caldwell

2. First Amendment – Carollo

3. First Amendment – Hazen and Sawyer

4. Second Amendment – Black Water

5. Second Amendment – West Yost

6. Second Amendment – Woodard and Curran

7. First Amendment – Black Water

8. First Amendment – West Yost

9. First Amendment – Woodard and Curran

10. Original Agreement – Black Water

11. Original Agreement – Brown and Caldwell

12. Original Agreement – Carollo

13. Original Agreement – Hazen and Sawyer

14. Original Agreement – West Yost

15. Original Agreement – Woodard and Curran
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1 FIRST AMENDMENT TO AGREEMENT FOR ON-CALL ENGINEERING

CONSULTANT SERVICES WITH BROWN AND CALDWELL
This First Amendment to the Agreement for On-Call Engineering Consultant Services (the “First Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as “CITY” and BROWN AND CALDWELL, a California corporation, hereinafter referred to as “CONSULTANT” is entered into by the parties on the ______ day of ____________, 2023.

RECITALS
This First Amendment is made with regard to the following recitals:

WHEREAS, City and Consultant previously entered into an agreement for the OnCall Engineering Consultant Services dated February 25, 2020 (the “Original Agreement”), and WHEREAS, City and Consultant desire to amend Section 3, COMPENSATION, of the Original Agreement.

NOW, THEREFORE, in consideration of this First Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for On-Call Engineering Consultant Services and this First Amendment to the Original Agreement, the parties agree as follows:

1. Section 3, Paragraph 1, COMPENSATION of the Original Agreement is deleted in its entirety and replaced with: Consultant agrees to furnish services for an estimated annual amount of $200,000 for the Sewer Operations Fund and an estimated annual amount of $100,000 for the Storm Drain Fund. The total amount paid by CITY to CONSULTANT over the full term of the AGREEMENT shall not exceed $1,000,000 from Sewer Operations Fund and shall not exceed $500,000 from Storm Drain Fund.
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2 2. Except as provided by this First Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this First Amendment to the Original Agreement for On-Call Engineering Consultant Services by its City Manager and attestation by its City Clerk under authority of Resolution No. ________, adopted by the Council of the City of Modesto on the ______ day of ___________, 2023, and Brown and Caldwell has caused this First Amendment to be duly executed as of the Effective Date.
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1 FIRST AMENDMENT TO AGREEMENT FOR ON-CALL ENGINEERING

CONSULTANT SERVICES WITH CAROLLO ENGINEERS
This First Amendment to the Agreement for On-Call Engineering Consultant Services (the “First Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as “CITY” and CAROLLO ENGINEERS, INC., a Delaware corporation, hereinafter referred to as “CONSULTANT” is entered into by the parties on the ______ day of ____________, 2023.

RECITALS
This First Amendment is made with regard to the following recitals:

WHEREAS, City and Consultant previously entered into an agreement for the OnCall Engineering Consultant Services dated February 25, 2020 (the “Original Agreement”), and WHEREAS, City and Consultant desire to amend Section 3, COMPENSATION, of the Original Agreement.

NOW, THEREFORE, in consideration of this First Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for On-Call Engineering Consultant Services and this First Amendment to the Original Agreement, the parties agree as follows:

1. Section 3, Paragraph 1, COMPENSATION of the Original Agreement is deleted in its entirety and replaced with: Consultant agrees to furnish services for an estimated annual amount of $200,000 for the Sewer Operations Fund and an estimated annual amount of $100,000 for the Storm Drain Fund. The total amount paid by CITY to CONSULTANT over the full term of the AGREEMENT shall not exceed $1,000,000 from Sewer Operations Fund and shall not exceed $500,000 from Storm Drain Fund.
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2 2. Except as provided by this First Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this First Amendment to the Original Agreement for On-Call Engineering Consultant Services by its City Manager and attestation by its City Clerk under authority of Resolution No. ________, adopted by the Council of the City of Modesto on the ______ day of ___________, 2023, and Carollo Engineers has caused this First Amendment to be duly executed as of the Effective Date.
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1 FIRST AMENDMENT TO AGREEMENT FOR ON-CALL ENGINEERING

CONSULTANT SERVICES WITH HAZEN AND SAWYER
This First Amendment to the Agreement for On-Call Engineering Consultant Services (the “First Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as “CITY” and HAZEN AND SAWYER, a New York corporation, hereinafter referred to as “CONSULTANT” is entered into by the parties on the ______ day of ____________, 2023.

RECITALS
This First Amendment is made with regard to the following recitals:

WHEREAS, City and Consultant previously entered into an agreement for the OnCall Engineering Consultant Services dated February 25, 2020 (the “Original Agreement”), and WHEREAS, City and Consultant desire to amend Section 3, COMPENSATION, of the Original Agreement.

NOW, THEREFORE, in consideration of this First Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for On-Call Engineering Consultant Services and this First Amendment to the Original Agreement, the parties agree as follows:

1. Section 3, Paragraph 1, COMPENSATION of the Original Agreement is deleted in its entirety and replaced with: Consultant agrees to furnish services for an estimated annual amount of $200,000 for the Sewer Operations Fund and an estimated annual amount of $100,000 for the Storm Drain Fund. The total amount paid by CITY to CONSULTANT over the full term of the AGREEMENT shall not exceed $1,000,000 from Sewer Operations Fund and shall not exceed $500,000 from Storm Drain Fund.
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2 2. Except as provided by this First Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this First Amendment to the Original Agreement for On-Call Engineering Consultant Services by its City Manager and attestation by its City Clerk under authority of Resolution No. ________, adopted by the Council of the City of Modesto on the ______ day of ___________, 2023, and Hazen and Sawyer has caused this First Amendment to be duly executed as of the Effective Date.
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1 SECOND AMENDMENT TO AGREEMENT FOR ON-CALL ENGINEERING CONSULTANT SERVICES WITH BLACK WATER CONSULTING ENGINEERS INC.

This Second Amendment to the Agreement for On-Call Engineering Consultant Services (the “Second Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as “CITY” and BLACK WATER CONSULTING ENGINEERS INC., a California corporation, hereinafter referred to as “CONSULTANT” is entered into by the parties on the ______ day of ____________, 2023.

RECITALS
This Second Amendment is made with regard to the following recitals:

WHEREAS, City and Consultant previously entered into an agreement for the OnCall Engineering Consultant Services dated February 25, 2020 (the “Original Agreement”), and WHEREAS, City and Consultant desire to amend Section 3, COMPENSATION, of the Original Agreement.

NOW, THEREFORE, in consideration of this Second Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for On-Call Engineering Consultant Services and this Second Amendment to the Original Agreement, the parties agree as follows:

1. Section 3, Paragraph 1, COMPENSATION of the Original Agreement is deleted in its entirety and replaced with: Consultant agrees to furnish services for an estimated annual amount of $200,000 for the Sewer Operations Fund and an estimated annual amount of $100,000 for the Storm Drain Fund. The total amount paid by CITY to CONSULTANT over the full term of the AGREEMENT shall not exceed $1,000,000 from Sewer Operations Fund and shall not exceed $500,000 from Storm Drain Fund.
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2 2. Except as provided by this Second Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Second Amendment to the Original Agreement for On-Call Engineering Consultant Services by its City Manager and attestation by its City Clerk under authority of Resolution No. ________, adopted by the Council of the City of Modesto on the ______ day of ___________, 2023, and Black Water Consulting Engineers has caused this Second Amendment to be duly executed as of the Effective Date.
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1 SECOND AMENDMENT TO AGREEMENT FOR ON-CALL ENGINEERING

CONSULTANT SERVICES WITH WEST YOST ASSOCIATES
This Second Amendment to the Agreement for On-Call Engineering Consultant Services (the “Second Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as “CITY” and WEST YOST ASSOCIATES, a California corporation, hereinafter referred to as “CONSULTANT” is entered into by the parties on the ______ day of ____________, 2023.

RECITALS
This Second Amendment is made with regard to the following recitals:

WHEREAS, City and Consultant previously entered into an agreement for the OnCall Engineering Consultant Services dated February 25, 2020 (the “Original Agreement”), and WHEREAS, City and Consultant desire to amend Section 3, COMPENSATION, of the Original Agreement.

NOW, THEREFORE, in consideration of this Second Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for On-Call Engineering Consultant Services and this Second Amendment to the Original Agreement, the parties agree as follows:

1. Section 3, Paragraph 1, COMPENSATION of the Original Agreement is deleted in its entirety and replaced with: Consultant agrees to furnish services for an estimated annual amount of $200,000 for the Sewer Operations Fund and an estimated annual amount of $100,000 for the Storm Drain Fund. The total amount paid by CITY to CONSULTANT over the full term of the AGREEMENT shall not exceed $1,000,000 from Sewer Operations Fund and shall not exceed $500,000 from Storm Drain Fund.
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2 2. Except as provided by this Second Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Second Amendment to the Original Agreement for On-Call Engineering Consultant Services by its City Manager and attestation by its City Clerk under authority of Resolution No. ________, adopted by the Council of the City of Modesto on the ______ day of ___________, 2023, and West Yost Associates has caused this Second Amendment to be duly executed as of the Effective Date.
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1 SECOND AMENDMENT TO AGREEMENT FOR ON-CALL ENGINEERING CONSULTANT SERVICES WITH WOODARD AND CURRAN, INC.

This Second Amendment to the Agreement for On-Call Engineering Consultant Services (the “Second Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as “CITY” and WOODARD & CURRAN, INC., a Maine corporation, hereinafter referred to as “CONSULTANT” is entered into by the parties on the ______ day of ____________, 2023.

RECITALS
This Second Amendment is made with regard to the following recitals:

WHEREAS, City and Consultant previously entered into an agreement for the OnCall Engineering Consultant Services dated February 25, 2020 (the “Original Agreement”), and WHEREAS, City and Consultant desire to amend Section 3, COMPENSATION, of the Original Agreement.

NOW, THEREFORE, in consideration of this Second Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for On-Call Engineering Consultant Services and this Second Amendment to the Original Agreement, the parties agree as follows:

1. Section 3, Paragraph 1, COMPENSATION of the Original Agreement is deleted in its entirety and replaced with: Consultant agrees to furnish services for an estimated annual amount of $200,000 for the Sewer Operations Fund and an estimated annual amount of $100,000 for the Storm Drain Fund. The total amount paid by CITY to CONSULTANT over the full term of the AGREEMENT shall not exceed $1,000,000 from Sewer Operations Fund and shall not exceed $500,000 from Storm Drain Fund.
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2 2. Except as provided by this Second Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Second Amendment to the Original Agreement for On-Call Engineering Consultant Services by its City Manager and attestation by its City Clerk under authority of Resolution No. ________, adopted by the Council of the City of Modesto on the ______ day of ___________, 2023, and Woodard and Curran, Inc. has caused this Second Amendment to be duly executed as of the Effective Date.
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

December 04, 2023
Date: November 7, 2023
TO: Economic Development Committee
Sue Zwahlen, Chair
Chris Ricci, Vice-Chair
Eric Alvarez, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Agreement with The Natelson Dale Group for Economic Development Strategic Planning
CONTACT: Trevin Barber, Economic Development Manager
[email protected], 209-571-5566
DESCRIPTION:

Consider a Professional Services Agreement with Natelson Dale Group for Economic Development Strategic Planning, for a total amount not to exceed $144,875 and forwarding to Council for approval. (Funding Source: General Fund)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2020-2025 Strategic Plan Goal E. Drive Economic Vitality: Drive the success of a vibrant and economically sustainable business climate.

BACKGROUND:

The last approved Economic Development Strategic Plan for the City of Modesto was approved in 2003 and considered economic data from 1991-2000. During this time the economy has experienced profound shifts in sectors of opportunity, workforce development, housing availability and tests of resilience including COVID-19. The practice of economic development is also shifting from classic business attraction, retention, and expansion to inclusive economy development, and from local to regional initiatives and collaboration such as Stanislaus2030.

Modesto has an immediate opportunity to develop a strong Economic Development Element in its General Plan Update 2050. Having an up-to-date Economic Strategic Plan will help ensure that Modesto develops effective programs to attract development investment in collaboration with regional partners and stakeholders.

On August 21, 2023, the City released Request for Proposal INF23-04 for Economic Development Strategic Planning Services. Eleven qualified consulting firms submitted proposals by the September 21, 2023, deadline. The City convened a Review and Scoring Committee of staff and experts from Modesto and Opportunity Stanislaus to evaluate and rank #3..
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Agreement with The Natelson Dale Group for Economic Development Strategic Planning Page 2 of 4
the proposals on technical merit, and then staff evaluated the cost proposals for each vendor.

The City rated Natelson Dale Group’s proposal as the most responsive and cost competitive.

The Natelson Dale Group (TNDG) is a national economic consulting firm established in California in 1974. Their practice focuses largely on the planning and implementation of economic and workforce development programs. The firm’s work often involves direct linkages between a community’s industry attraction plans and its real estate development potentials. In this regard, they have a strong understanding both of local real estate markets and of the larger regional economic trends that drive demand for commercial and industrial land use.

DISCUSSION:

Modesto’s 2020-2025 Strategic Plan has three areas of focus; (1) quality of life, (2) economic vitality, (3) governance and service delivery. The definition statement for Economic Vitality is to retain and attract residential, commercial, and industrial development to meet the community’s needs today and for the next generation. The Economic Vitality area of focus has three highlevel economic development goals and actions:
 Drive the success of a vibrant and economically sustainable business climate  Build and promote a recognizable and desirable identity for the City of Modesto  Make downtown Modesto a regional destination
The Natelson Dale Group’s Economic Development Strategic Plan proposal directly supports 2020-2025 Strategic Economic Vitaly goals by executing four primary tasks:

TASK 1: Conducting a market assessment and building a baseline profile of current conditions
TASK 2: Conducting stakeholder engagement and visioning using Threats, Opportunities, Weaknesses and Strengths (TOWS) matrix approach to Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis that will illuminate barriers to achieving economic development goals including at minimum competitiveness, opportunity, strategy, and equity
TASK 3: Developing draft administrative plans including economic development action plans, standard operating procedures, and qualified and quantified measures of success TASK 4: Reporting and summarizing findings and recommendations The new economic development strategic plan aims to integrate and leverage existing plans and initiatives in the community, such as Stan2030 Investment Blueprint, North Valley Thrive, the General Plan 2050 Update, and the Downtown Master Plan. Here's how:

1. Stan2030: This is a public-private partnership that advances a shared vision for economic prosperity for all. It focuses on creating more quality jobs, reducing the number of struggling families, and focusing on growth, prosperity, and inclusion. The new economic development strategic plan can utilize the data and initiatives identified in Stan2030's Investment Blueprint to align efforts across governmental agencies, privatepublic partnerships, educational institutions, businesses, service providers, and community groups.
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Agreement with The Natelson Dale Group for Economic Development Strategic Planning Page 3 of 4

2. North Valley Thrive: This is a coalition of community organizations, government entities, educational institutions, and economic development agencies across San Juaquin, Stanislaus, and Merced Counties. It works towards the growth of inclusive economies. The new economic development strategic plan can be synced with their upcoming place-based economic development strategies to leverage the partnerships and initiatives of North Valley Thrive to foster economic resilience and inclusivity.

3. General Plan 2050: The General Plan is currently in development, such plans typically provide a long-term framework for development, land use, transportation, and public services. The new economic development strategic plan can leverage this to ensure that economic development initiatives align with the broader goals and guidelines of the community. It is intended that the planning efforts will provide a draft Economic Development Element for the General Plan 2050 Update.

4. Downtown Master Plan: This plan focuses on zoning policies for local, inclusive placemaking. It envisions the next evolution of downtown, which could include new businesses, residential areas, and public spaces. The new economic development strategic plan can build on the existing defensible community mandates to define new programs that will attract investment and stimulate economic activity in the downtown area.

By integrating these plans, the new economic development strategic plan can ensure a coordinated and comprehensive approach to economic development, maximizing the impact of each initiative and fostering a resilient and prosperous community.

After the delivery of the draft Economic Development Strategic Plan, relevant data and community input will inform the most appropriate recommendations for the next phase of business incentive programs, marketing campaigns, and zoning/real estate strategy. The Economic Development Committee and City Council will be presented with recommendations for operationalizing the strategic plan, with goals and objectives, for the upcoming fiscal years.

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow the formal bid procedures. An Award of RFP and Agreement for Professional Services for Community and Economic Development Department use to the Natelson Dale Group, Yorba Linda, California, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and the Natelson Dale Group was the lowest responsive and responsible bidder.

FISCAL IMPACT:

The project is currently budgeted in project 101505:Econ. Dev. Strategic Plan and there are sufficient funds for the project. The proposed Economic Development Strategic Plan project will not exceed $144,875
RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:
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Economic Development Committee, December 4, 2023
Agreement with The Natelson Dale Group for Economic Development Strategic Planning Page 4 of 4
Motion recommending the Professional Services Agreement with The Natelson Dale Group, for a total amount not to exceed $144,875 for Economic Development Strategic Planning Services and forwarding to Council for approval.

Approved by:

Jessica Hill, Director Community and Economic
Development
Joseph P. Lopez, City Manager
Attachments:

1. Professional Services Agreement

2. Exhibit A – Scope of Work

3. Exhibit B – Hourly Rates

4. RFP INF 23-04 Final

5. The Natelson Dale Group Proposal
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1 STANDARD AGREEMENT

FOR CONSULTANT SERVICES
THIS AGREEMENT, made and entered into in the City of Modesto, State of California, this day of , 2023, (“Effective Date”) by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "City", and The Natelson Dale Group, a California corporation, hereinafter referred to as "Consultant".

This Agreement is made with regard to the following recitals:

A. The City has determined that an Economic Development Strategic Plan (EDSP) should be prepared for the City to assist it in implement Strategic Plan 2020-2025 Goals for Economic Vitality.

B. Consultant represents that it is qualified, willing, and able to provide the services to prepare said document(s).

NOW, THEREFORE, in consideration of this agreement, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:

1. SCOPE OF SERVICES.

Consultant shall undertake and complete the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit "A" or "Project".

2. TERM OF AGREEMENT.

This Agreement is effective as of the date first written above and will continue in effect until City's acceptance of and payment for all services authorized by City and performed by Consultant, unless terminated earlier in accordance with the provisions of the termination clause in this Agreement.

City hereby gives Consultant notice to proceed with the preparation of the Project, as of the Effective Date of this agreement. Consultant shall diligently proceed with the completion of the Project within the time period set forth in Exhibit "A".

3. COMPENSATION.
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2 Consultant agrees to accept a sum not to exceed $144,875.00 (maximum compensation) as full remuneration for performing all services and furnishing all staffing and materials for Modesto in accordance with Exhibit "A" , except that additional services may be compensated as described below.

The Compensation shall be paid pursuant in the manner and at the times set forth below:

City shall pay Consultant on a time and materials basis for Consultant’s actual costs for all work called for in Exhibit “A” to this Agreement. All work to be performed under this Agreement shall be billed at the hourly rates set forth in Exhibit “B” attached hereto. Consultant shall submit monthly invoices to City which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any reimbursable expenses paid by Consultant and identified in Exhibit “B” or approved by the City in writing.

4. OBLIGATIONS OF CONSULTANT.

Throughout the term of this Agreement, Consultant shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business. Consultant warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, facilities and other resources necessary to provide the City with the services contemplated by this Agreement. Consultant further warrants that it will follow the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.

5. PERFORMANCE BY KEY EMPLOYEE.

Consultant has represented to City that Roger Dale, President, will be the person primarily responsible for the performance of the services referred to in this Agreement. City has entered into this Agreement in reliance on that representation by Consultant. Consultant therefore agrees that twenty point eight percent (20.8%) or more of the time to be devoted to the project that is the subject of this Agreement will be that of the above-named person as set forth in Exhibit “B” attached hereto.

6. OWNERSHIP OF DOCUMENTS/TITLE TO DATA.
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3 Ownership of Documents
All reports, drawings, designs, graphics, working papers, and other incidental work or materials furnished hereunder shall become and remain the property of the City, and may be used by City as it may require without any additional cost to City. No reports shall be used by the Consultant for purposes other than this contract without the express prior written consent of City.

Title to Data
If, as a part of the agreement, Consultant is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids, and other related materials, the originals of all such data generated under this agreement will be delivered to City upon the completion or termination of services under the contract. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use.

All materials, documents, data or information obtained from the City data files or any City medium furnished to Consultant in the performance of this Agreement will at all times remain the property of the City. Such data or information may not be used or copied for direct or indirect use by Consultant after termination of this Agreement without written consent of the City.

7. NEWS AND INFORMATION RELEASE.

Consultant agrees that it will not issue any news releases in connection with either the award of this Agreement, or any subsequent amendment of or efforts under this Agreement, without first obtaining review and approval of said news releases from the City Manager.

8. CONFLICT OF INTEREST.

Consultant warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would create a “conflict of interest”, as that term is defined in the Political Reform Act (Gov. Code § 81000 et seq), for the Consultant in the performance of this Agreement. Consultant warrants that, in performance of this Agreement, Consultant shall not employ any person having any such interest. Consultant understands #3..
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4 that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed. Consultant agrees to file a Statement of Economic Interests with the City Clerk at the start and end of this contract if so required at the option of City.

9. AMENDMENTS.

This Agreement, including the Exhibits attached hereto, may be amended only by a writing signed by both Parties. City will not be responsible to pay any charges Consultant may incur in performing services not identified in Exhibit ‘A’ unless first authorized by the City in writing

10. INDEPENDENT CONTRACTOR.

All acts of Consultant, its agents, officers, and employees and all others acting on behalf of Consultant relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of City. Except as City may specify in writing, Consultant has no authority to bind or incur any obligation on behalf of City. Consultant has no authority or responsibility to exercise any rights or power vested in the City. It is understood by both Consultant and City that this Agreement shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture. Consultant, its agents, officers and employees are and, at all times during the terms of this Agreement, shall represent and conduct themselves as independent contractors and not as employees of City.

Consultant shall determine and control the method, details and means of performing the work and services to be provided by Consultant under this Agreement. Consultant shall be responsible to City only for the requirements and results specified in this Agreement, and, except as expressly provided in this Agreement, shall not be subjected to City's control with respect to the physical action or activities of the Consultant in fulfillment of this Agreement. Consultant is permitted to provide services to others during the same period service is provided to City under this Agreement. If necessary, Consultant has the responsibility for employing other persons or firms to assist Consultant in fulfilling the terms and obligations under this Agreement.
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5 If in the performance of this Agreement any third persons are employed by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the Consultant.

It is understood and agreed that as an independent contractor and not an employee of City neither the Consultant or Consultant's assigned personnel shall have any entitlement as a City employee, right to act on behalf of the City in any capacity whatsoever as an agent, or to bind the City to any obligation whatsoever. It is further understood and agreed that Consultant must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Consultant's personnel.

11. ASSIGNMENT.

Neither this Agreement nor any portion thereof shall be subcontracted or assigned, other than noted in Exhibit ‘A’, without the express prior written consent of the City in each and every instance.

12. PATENT/COPYRIGHT MATERIALS.

Unless otherwise expressly provided in the contract, Consultant shall be solely responsible for obtaining the right to use any patented or copyrighted materials in the performance of this Agreement. Consultant shall furnish a warranty of such right to use to City at the request of City.

13. NOTICES.

Notice required by this Agreement shall be given in writing and shall be deemed given and effective upon delivery provided that such are delivered in accordance with the provisions of this Section.

Notices shall be delivered either by: (a) personal delivery; (b) overnight courier service which obtains confirmation of delivery; or (c) certified pail, return receipt requested, if delivery is confirmed by a return receipt; or (d) by electronic transmission subject to reasonable proof that the notice was both transmitted and received. Each such notice shall be sent to the parties at the address respectively set forth below or to such other address as a party may designate by written notice given in accordance with the provisions of this Section:
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6 FOR CONSULTANT: Name: The Natelson Dale Group
Address: P.O. Box 489
Yorba Linda, CA 92886 ______
Attention: Roger Dale, Managing Principal
FOR CITY: Name: City of Modesto
Address: P.O. Box 642
Modesto, CA 95353 __________
Attention: Jessica Hill, Director of Community and Economic Development

14. INSURANCE REQUIREMENTS.

The Consultant shall provide at its own expense and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the City as may be required by the Risk Manager of the City. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the City by certified mail, return receipt requested, for all of the following stated insurance policies.

In the event the certificates of insurance required hereunder do not provide for notice of cancellation to the certificate holder and/or additional insureds, the Consultant shall provide, and shall require its subcontractors to provide, as an express condition precedent to payment hereunder, an endorsement from their insurers providing that the additional insureds identified herein shall be provided 30 days notice of the cancellation on the policies of insurance required hereunder (10 days notice if the policies are cancelled for nonpayment of premium). In addition, the named insured on all such policies shall provide to the additional insureds identified herein any notices of cancellation of said insurance policies within 5 business days of receipt of such notice. The Consultant shall, as a further express condition precedent to payment for work performed, affirm under penalty of perjury that the required insurance on the project remains in place and said insurance has not been cancelled.
(a) Worker's Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000. #3..
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7 (b) General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. This insurance shall indicate on the certificate of insurance the following coverages and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent consultants and subcontractors; products and completed operations as applicable.
(c) Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
(d) Professional Liability insurance with a minimum limit of $1,000,000 per claim and policy aggregate. If coverage is on a claims made basis it shall be maintained for at least three (3) years following completion of the work.

If at any time any of said policies shall be unsatisfactory to the City, as to form or substance, or if a company issuing such policy shall be unsatisfactory to the City, the Consultant shall promptly obtain a new policy, submit the same to the Risk Manager for approval and submit a certificate thereof as hereinabove provided. Upon failure of the Consultant to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of the City, may be forthwith declared suspended or terminated. Failure of the Consultant to obtain and/or maintain any required insurance shall not relieve the Consultant from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the Consultant concerning indemnification. The City, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation and Professional Liability. The Workers' Compensation insurer shall agree to waive all rights of subrogation against the City, its agents, officers, employees, and volunteers for losses arising from work performed by Consultant for the City. The Consultant's insurance policy(ies) shall #3..
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8 include a provision that the coverage is primary as respects the City; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A:VII or with approval of the Risk Manager. The Consultant must deliver certificates evidencing existence of the insurance listed above to the City prior to the time the contract is signed.

CONSULTANT shall provide CITY with separate endorsements evidencing proof of the CITY’s additional insured status as to both the general liability and automobile liability insurance policies. In addition, CONSULTANT shall provide CITY with a Workers Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number.

For any claims related to this project, the CONSULTANT’S insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the CONSULTANT’S insurance and shall not contribute with it.

15. TERMINATION OF AGREEMENT.

Termination for Default
In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance.

Within 10 days after receipt of notification, the breaching party shall correct any non-performance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.

Termination by City for Convenience
City may cancel this Agreement at any time, with or without cause, upon written notification to Consultant.

Post-Termination Procedure
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9 Upon receipt of a written notice of termination, the Consultant shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subconsultants and agents are notified of such termination and act as specified in the notice of termination; b. Terminate all orders and Subcontractors except as necessary to complete any portion of the Work that is not terminated;
c. If directed in writing by the City to do so, assign all right, title and interest in subcontracts and materials in progress to City, in which case the City will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subconsultants, but in no event shall recovery by any Consultant or subconsultant include lost profits for portions of the Work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the Consultant in performing the Work whether completed or in process;
e. Settle outstanding liabilities and claims, subject to the approval of City; f. Complete performance of such part of the Project as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the Project and/or property related to the Project;
h. If City so requests, and at City's cost, Consultant shall provide sufficient oral or written status reports to make City reasonably aware of the status of Consultant's work on the project.
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10 refuse to pay Consultant for that portion of Consultant's services which were performed by Consultant on the project prior to the termination date and which remain unacceptable and/or not useful to City as of the termination date.

City will pay Consultant for work actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the Consultant after termination for convenience shall be limited to amounts due and owing under the Agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the Work such as subconsultant agreements or contracts for materials; b. The Agreement price allocable to the portion of the Work properly performed or goods supplied to the work site by the Consultant as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the Consultant.

16. INDEMNITY.

The Consultant shall hold the City, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of Consultant, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this Agreement.

Consultant's obligation to defend, indemnify, and hold the City, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Agreement for Consultant to procure and maintain a policy of insurance.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees #3..
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11 Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

17. DISPUTE RESOLUTION.

Venue for all claims, controversies, or disputes arising out of, or relating to the formation of this Agreement, or the breach, termination execution, enforcement, interpretation, or validity of this Agreement, including the determination of the scope or applicability of this contract provision shall be in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.

18. ATTORNEYS’ FEES.

If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

19. ENTIRE AGREEMENT.

This Agreement and its exhibits contain the entire understanding between Consultant and City. All previous proposals, offers and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement.

20. PARTIAL INVALIDITY.

If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

21. WAIVER.
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12 The waiver by any party to this Agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.

22. AUDIT.

The City's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Consultant's charges to City under this Agreement.

Consultant agrees to retain reports, records, documents, and files related to charges under this Agreement for a period of four (4) years following the date of final payment for Consultant services. City's representative shall have the right to reproduce any of the aforesaid documents.

23. GOVERNING LAW.

This Agreement shall be governed according to the laws of the State of California.

24. HEADINGS NOT CONTROLLING.

Headings used in the Agreement are for reference purposes only and shall not be considered in construing this Agreement.

25. COMPLIANCE WITH LAWS.

Consultant shall insure compliance with all safety and hourly requirements for employees, in accordance with federal, state, and county safety and health regulations and laws. Consultant shall fully comply with all applicable federal, state, and local laws, ordinances, regulations and permits.

26. CITY BUSINESS LICENSE.

Consultant will have a City of Modesto business license. #3..
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13 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement for Consultant Services by its City Manager and attested by its City Clerk under authority of Resolution 2023-_____,adopted by the Council of the City of Modesto on the _____________ day of _____________________, 2023, and _____________________has caused this Agreement to be duly executed.
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RFP INF24-03 Request for Proposals:

Professional Services for the Development of Economic
Development Strategic Plans for the City of Modesto
Proposal Release: August 21, 2023
Proposal Due: September 21, 2023, at 5:00 pm
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PROJECT OVERVIEW
The City of Modesto (City) Community and Economic Development Department (Department) is currently seeking consulting services to develop a series of Economic Development Plans (Plans) including a strategic plan, marketing plan, and a draft Economic Development Element for inclusion in the General Plan 2050 Update. The Plan will identify Economic Development priorities and programs in the 2023-2030 timeframe and chart a course for implementation. The City seeks proposals from qualified individuals, firms, teams, or consultants (“Proposers”) with demonstrated experience in economic development strategic planning and will engage the successful Proposer to evaluate and propose strategies and action plans supporting transformation of the Modesto economy, opportunities, and quality of life for all residents.

Modesto’s Economic Development Strategic Plan will align with and support the City of Modesto’s Strategic Plan 2020-2025, Modesto General Plan 2050 Comprehensive Update, Downtown Modesto Master Plan, Local Hazard Mitigation Plan Update, Capital Improvement Programs, Modesto Housing Plan, and a possible EIFD Infrastructure Development Plan.

Modesto’s 2020-2025 Strategic Plan has three areas of focus (1) quality of life, (2) economic vitality, (3) governance and service delivery. The definition statement for Economic Vitality is to retain and attract residential, commercial, and industrial development to meet the community’s needs today and for the next generation. The Economic Vitality area of focus has three high-level economic development goals and actions:
 Drive the success of a vibrant and economically sustainable business climate:
o Update the General Plan consistent with city vision.
o Develop a citywide business incentive plan that fosters economic diversification (i.e., infrastructure investments, business attraction, retention and grow local entrepreneurs).
o Collaborate with local hospitals and medical providers to create a medical district.
o Develop public-private partnerships with local firms and educational institutions.
o Collaborate with universities and colleges to offer educational and vocational services to train and develop current and future residents to meet local business workforce needs.
 Build and promote a recognizable and desirable identity for the City of Modesto.
o Develop and implement a City of Modesto communication plan and branding campaign.
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o Engage and train the community to serve as ambassadors of Modesto’s “brand.”
o Engage stakeholders and develop a comprehensive community marketing strategy.
 Make downtown Modesto a regional destination.
o Create a downtown economic development strategy (including infill housing, mixed-use development, business retention and attraction, and placemaking).
o Collaborate with downtown partners to expand upon existing successful downtown events and entertainment offerings.

Modesto represents about half of the population and economic activity in Stanislaus County. Modesto is collaborating with Stanislaus County, the Stanislaus Community Foundation and industry representatives to transform Stanislaus County’s economic landscape by 2030 per the Stanislaus2030 Economic Blueprint.

CITY OF MODESTO BACKGROUND
Located in the heart of the Central Valley, Modesto is the 19th-largest city in California, with 218,771 residents as of July 2021. From the 2010 to 2020 Census, Modesto grew from 201,165 to 218,464, or 8.6%. Compared to the US, Modesto has more residents in the under-18 age group (26.3%/22.2%) and fewer in the over-65 (13.6%/16.8%), and more persons per household (2.99/2.60).

Modesto is diverse in race and ethnicity with nearly equal populations of White-only/nonHispanic (41.4%) and Hispanic or Latino (42%). Asian (7.7%) and Black (4.5%) are the next-largest homogeneous groups, with 12.8% identifying as multi-racial. A language other than English is spoken in 37.3% of homes compared to the US average of 21.7%.

With agricultural roots, the Modesto population’s educational attainment of 19.5% with a Bachelor or higher degree lags the national average of 33.7%.

Median household income in 2021 was $67,011 versus $70,784 nationally and $81,575 for California. December 2022 BLS data shows Modesto’s unemployment rate was 4.6% vs. California’s 4.1% average. 12.8% of residents lived in poverty in 2021 vs. 11.6% nationally. Modesto’s median gross rent in 2021 was $1,366 vs. California’s $1,698 (Census Department). In January 2023, Modesto’s median home price was $395,000 vs. $694,600 in California (Redfin).

Modesto’s largest industries by employment include Healthcare, Manufacturing, Logistics, Retail/Dining/Hospitality, Public Sector and Professional Services. Employer establishments numbered 3,311 in 2017 with 887 minority-owned and 596 women-owned firms. Large employers include County and City government and education, healthcare (Sutter Health, Tenet, Kaiser), E. & J. Gallo, Frito-Lay, Del Monte Foods, Wal-Mart, Costco and Modesto Irrigation District.
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Modesto’s livability factors include tree-lined neighborhoods with more than 60 Parks and trails and crossings by the Tuolumne and Stanislaus rivers that provide riparian habitat and recreational activities. Unlike larger urban centers, Modesto crime rates have been declining according to FBI statistics. Tourism is centered around farm-to-table dining and wines and a vibrant downtown. Entertainment is anchored by the world-class Gallo Center for the Performing arts and the art deco independent State Theatre. A talented maker community supports Art Walks, holiday art/craft markets that take over downtown, First Friday events with live music and activities, an authentic Día de los Muertos parade and celebration, and a popular annual Music Awards show. Modesto has an extended holiday season celebration with ice skating, parade and live music downtown, a Fourth of July celebration, and an annual classic car Cruise that celebrates the City’s American Graffiti heritage.

Modesto is a charter city with a council-manager government. A Mayor is elected representing the City, and six Councilmembers are elected to represent one of six geographic districts. A City Manager is appointed by the Council who oversees City Departments and functions.

The Economic Development function resides in the Community and Economic Development Department. Economic Development partners include Stanislaus County Economic Development, Opportunity Stanislaus, the countywide economic development agency, the Stanislaus Community Foundation, Stanislaus Equity Partners, the Modesto Chamber of Commerce, the Central Valley Hispanic Chamber of Commerce, VisitModesto, the Downtown Modesto Partnership, the Downtown Improvement District, City Ministry Network, active service groups, and specialist non-profit organizations.

TRANSMITTAL LETTER
Proposers are asked to provide a transmittal letter. This letter must contain an expression of the proposer's interest in the work, a summary statement regarding the qualifications of the proposer to do the work, and a brief summary of any information about the project team or the proposer that may be useful or informative to the City.

The proposal should be signed by an officer authorized to bind the proposing firm. Indicate the name of the organization submitting the proposal, its mailing address, telephone number, and identify the primary point of contact.

Acknowledge that the proposer agrees to be bound by the representations in their proposal during the term of the agreement in addition to a statement that the proposal is valid for a period of 90 days.
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SCOPE OF WORK
The scope of work outlined below represents an estimation of the activities required to successfully develop the Plan. Based on specific knowledge of the process and firm experience, City staff encourages respondents to amend this scope and identify any additional potential steps or activities that would benefit the City in this process. Any proposals for additions to, modifications of, or exceptions from the Scope of Work shall be clearly stated in the proposal and fully explained in the appropriate section(s), with costs specifically broken out. The City of Modesto is open to innovative and/or customized measures but reserves the right to evaluate such proposals in full prior to execution of a contract to ensure that all the needs of the project and the City are met.

The Scope of Work includes performing an economic development market assessment to establish baseline conditions bearing on Modesto’s stated economic strategic goals, identify strategic barriers to attaining those goals and additional goals as may be determined to be critical, proposing strategies to overcome barriers to success, and proposing an implementation action plan.

Task 1—Initiation, Market Assessment, and Baseline Profile Proposers will outline and illustrate by example how they have and plan to perform a market assessment to establish a baseline of current conditions and benchmark progress toward achievement of strategic goals and critical gaps that need to be resolved.

Proposers will show how the market assessment will contribute to determination of Economic Development strategic goals. Proposers should illustrate means and measures for evaluating critical gaps. A market assessment may include labor market data, real estate data, demographics, cost of living, commute sheds, and labor force efficiency.

Task 2—Launch Stakeholder Engagement and Visioning (TOWS Matrix) The selected Proposer will manage a robust stakeholder engagement process—working with City staff to identify relevant stakeholder groups in the economic development community as well as formulate and execute an inclusive stakeholder engagement effort to include business leaders, business owners, targeted public representatives, and development partners critical to the success of the strategy. Techniques may include a combination of stakeholder meetings, stakeholder interviews, surveys, and use of electronic media. The stakeholder engagement effort should be designed to ensure depth of participation within a partner-centric approach. The design of this effort should reflect the purpose of each identified stakeholder group, and the methods to be used for communicating the initiative.

Proposer will discuss how they have facilitated TOWS and/or SWOT groups. Proposers will discuss and illustrate by example how they plan to identify and measure strategic barriers to achieving economic development goals. The discussion is open to the #3..
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proposer’s suggested areas of focus but must at minimum include discussion of barriers impacting four broad performance areas:
 Competitiveness
 Opportunity
 Strategy
 Equity
Proposers will discuss and illustrate by example how they have developed and plan to develop strategies to overcome the types of barriers identified and provide experiencebased examples of qualified and quantified measures of success.

Task 3—Propose Administrative Draft Plans
Based on prior experience, proposers will discuss their approach to developing practical economic development action plans, standard operating procedures, and provide examples of qualified and quantified measures of success for these plans. Any experience implementing the Government Finance Officers Association incentive framework is preferred.

Task 4—Presentation and Report Summarizing Findings and Recommendations Proposers will discuss and show by work examples they will prepare and present summary findings and recommendations in person and/or virtually to audiences including City management, Mayor and Council Members and economic development partners and stakeholders. Deliverables include a strategic plan, implementation action plan, marketing plan, and a draft Economic Element.

PROPOSAL CONTENTS

CITY OF MODESTO EXPECTATIONS
The City reserves the right to amend, withdraw and cancel this RFP. The City reserves the right to reject all responses to this RFP at any time prior to contract execution. The City reserves the right to request or obtain additional information about any and all proposals.

The selected Consultant is expected to have a complete understanding of City, State, and Federal procedures and manuals and all applicable laws and regulations necessary to complete the Scope of Work.

This RFP provides guidance but may not represent the exact form of the final project scope, pending negotiations between the selected Consultant and the City of Modesto.

Past experience in performing similar services will be a heavily weighted factor in the selection process. Quality of performance on previous design contracts, ability to meet schedules and budgets, and ability to communicate effectively with construction personnel, City staff, other consultants, utility companies, and regulatory agency staff will be some of the attributes and factors considered.
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COST OF RFP PREPARATION
The City shall not be liable for any pre-contractual expenses incurred by any consultant preparing a submittal or portions thereof or by any selected consultant. Each consultant shall protect, defend, indemnify, and hold harmless the City from any and all liability, claims, or expenses whosoever incurred by, or on behalf of, the entity participating in the preparation of its response to this RFP. Pre-contractual expenses are defined as expenses incurred by consultants, if any, in:
 Preparing the Proposal and related information in response to this RFP.  Negotiations with the City of any matter related to this procurement.  Costs associated with interviews, meetings, travel, or presentations.  All other expenses incurred by a proposer/consultant prior to the date of award and a formal notice to proceed.

PROPOSAL FORMAT
Proposals should be submitted via electronic mail to [email protected] under two covers—one for qualifications and one for price/rates. The Proposal shall contain an acknowledgment of receipt of all amendments and/or addenda to the RFP.

PROPOSAL CONTENT
The City requires the proposer to submit a concise proposal clearly addressing all of the requirements outlined in this RFP; it must contain information covering the following topics:

Cover Letter
The cover letter shall be signed by a person authorized by the Proposer to execute a contract with the City. It shall include: the legal name of the company; the name, address and telephone number of the principal person representing the firm; the firm’s current annual dollar volume of work; and a summary of the Proposal, including a brief description of the proposed team. It shall make a commitment to accept the terms and conditions in the RFP and the Standard Agreement for Professional Services (Attachment A), including acknowledgment of receipt of all amendments and/or addenda to the RFP.

The letter shall also identify a single person for possible contact during the RFP review process regarding contract language.

Project Understanding and Approach
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This section should demonstrate an understanding of the scope of services. It should describe the general approach, organization, and staffing required for the services requested. Also, describe the firm’s understanding of key issues and its approach to resolving those issues. All sub-consultants and their roles must be identified. The consultant shall include an organizational chart identifying key personnel responsible for accomplishing all aspects of the work.

Qualifications of Consultant Staff and Sub-consultant Staff This section should include a list of key personnel to be assigned to the proposed Project and qualifications for each person to be used, including sub-consultant personnel. An organizational chart or similar graphic shall also be provided that clearly shows the function each person will be expected to fulfill. It is imperative that the key personnel providing the requested services have the background, experience, and qualifications to provide the services described in this RFP. The City reserves the right to approve all key personnel individually and all sub-consultants for work on this contract.

If sub-consultants or joint consultants are proposed, describe any relevant association with the proposed sub-consultants. Provide examples of past projects on which the lead firm has worked with each sub-consultant. Indicate the percentage of the fee allocated for each participating consultant and/or sub-consultant.

After the contract is signed, the consultant may not replace key staff without written agreement by the City.

Experience of Firm
This section should include the relevant experience of the principal firm. Include project descriptions, status of the project, construction costs and dollar value of services provided. Clearly identify the role of key staff identified herein and identify a minimum of three (3) current and recent client references including contact information (phone numbers and emails). The focus shall be on experience, analysis, and documentation for similar projects. Only recent similar projects completed in the past ten years should be included in this section. During evaluation of proposals, completed projects on which the key staff proposed for this RFP had a significant role in the project will be considered to have more weight than those that did not include such personnel. Any other details that the principal firm wishes to convey about itself or its proposed subcontractors should be placed in this section.

Cost, Schedule & Deadlines (under separate cover)
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The following elements shall be included in describing the budget allocation in the Consultant Proposal:
 An overall cost proposal, including a breakdown of costs by Activity listed in the scope of work section of this RFP;
 Person hours allocated to each step and total hours allocated for project objectives and overall project (including sub-contractors), or flat costs by tasks with a “not to exceed” figure for each task;
 A breakdown of the employees and professionals to be assigned to each project objective and the hourly rates and person-hour costs assigned (please indicate total number of hours for each project team member along with total hours for each project objective and the entire project), or flat costs by tasks with a “not to exceed” figure for each task;
 Personnel charge rates of the firm;
 Classification as to whether or not employees are reimbursed by hourly rate or salary; and,
 List of any subcontractors who may provide technical or other assistance and breakdown of hours/costs associated with the sub-consultants;  Any proposals for additions to, modifications of or exceptions from the Scope of Work shall be clearly stated in the proposal and fully explained in the appropriate section(s), with costs specifically broken out in this section. The City of Modesto is open to innovative and/or customized measures, but reserves the right to evaluate such proposals in full prior to execution of a contract in order to ensure that all the needs of the project and the City are met; and,
 A detailed schedule, listing sufficient activities to demonstrate an understanding of the process involved in delivering a project of this type. This should include projected completion dates of each Activity listed in the scope of work section of this RFP.

INSURANCE REQUIREMENTS
Insurance Type or Requirement Requirement
General Liability $1,000,000
Automobile $1,000,000
Worker’s Compensation (if there are
employees of the business)
$1,000,000
Professional Liability or Errors and
Omissions
$1,000,000 and $2,000,000 aggregate
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Waiver of Subrogation Form Required
Additional Insured Endorsement Additional Named Insured language required: The City of Modesto, its officers,
officials, employees, agents and
volunteers are to be covered as additional
insureds.

CONFIDENTIALITY
If any of the submittals, or any portion of the submittals, are considered confidential by the respondent, such documents should be submitted with a single copy in a separate sealed envelope clearly marked “Confidential” on the outside of the envelope.

All information and documents, excluding the confidential financial information, submitted in response to this RFP are subject to the California Public Records Act, https://www.ftb.ca.gov/your-rights/california-public-records-act.html, California Government Code §§ 6250 through 6276.48) (“CPRA”), which mandates the disclosure of documents in the possession of the City upon the request of any person, unless the content of the document falls within a specific exemption category of the CPRA.. On each page that contains information that the respondent believes is exempt from mandatory disclosure under CPRA, respondent shall include the following separate legend:
“CONFIDENTIAL – NOT FOR PUBLIC DISTRIBUTION”
“THIS PAGE CONTAINS INFORMATION THAT IS EXEMPT FROM MANDATORY DISCLOSURE UNDER THE CALIFORNIA PUBLIC RECORDS ACT.”
Should the City receive a request to review confidentially labeled information, the City will notify the respondent of the request and delay the access to the materials for seven (7) days after notification to respondent to allow respondent to act in protection of its labeled information. Failure to so act shall constitute a complete waiver.

All responses will be considered public records that are subject to public disclosure. In the event a respondent considers its submittal as a proprietary trade secret or otherwise exempt from disclosure under the CPRA, the respondent must designate its submittal as confidential. The City will withhold designated applications from public disclosure only if permitted by applicable law. The City will not be responsible or liable for disclosure of any information, including without limitation those marked confidential, if disclosure is deemed by the City to be required by law, or by a court of competent jurisdiction.

EVALUATION CRITERIA
The following is an outline of the procedures the City will use in the selection process:
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 Establish a Screening and Selection Committee.
 Screening and Selection Committee reviews and evaluates the proposals submitted by the prospective consultants.
 Proposers may be required to participate in an oral interview. The oral interview will be a panel comprised of members of the selection committee.  Negotiations may take place with the primary firm on the final scope of work, the final contract proposal, and the proposal price.
 If a contract cannot be negotiated for this study, the negotiations with the designated consultant shall be terminated in writing and negotiations shall be started with the next highest rated consultant.
 The selection committee will make a recommendation to the awarding authority.  Selection Committee Chairman will notify the selected firm of the final approval of the contract by the City Council.

CONSULTANT EVALUATION CRITERIA
The City intends to engage the most qualified consultant available for this assignment. It is imperative the consultant’s proposal fully address all aspects of the RFP. It must provide the City’s staff with clearly expressed information concerning the consultant’s understanding of the City’s specific requirements and qualifying the proposer to conduct this study in a thorough and efficient manner.

The following criteria shall be used in evaluation of the proposer’s offer of services:
 Proposals should provide a straightforward and concise presentation adequate to satisfy the requirements of the RFP. Emphasis should be on the quality, completeness, and clarity of contents. Responsiveness to the RFP will be the principal basis for evaluation;
 Consultant experience in providing similar services on studies of similar scope;
 Project manager and his/her team’s experience in conducting assignments of similar scope;
 Methodology to be employed in conducting the study;
 Familiarity with economic data sources;
 Proposer’s support organization and in-house quality control and quality assurance methods;
 Proposal clarity in expressing the understanding of the City’s needs and in defining a work plan for satisfying these needs;
 Proposer’s prior record of performance with city or others;  Schedule compatibility with City;
 Availability to work with City staff.
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The selection committee will make a recommendation to the awarding authority. The acceptance of the proposal will be evidenced by written Notice of Award from the City’s designated project manager to the successful Proposer.

PROPOSED TIMELINE
Release of Request for Proposal: Monday Augst 21, 2023
Questions Due by: September 7, 2023 – 5:00 PM
Proposals Due by: September 21, 2023 – 5:00 PM
Interviews (if necessary) Week of September 25, 2023
Selected Firm Notified Week of October 2, 2023
Anticipated Contract Award November 7, 2023
The City of Modesto assumes no responsibility for delay in the delivery of any proposal(s).

All costs associated with the preparation and delivery of any proposal(s) shall be borne by the proposer(s).
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Please direct your proposal to:

Trevin W. Barber, Economic Development Manager
City of Modesto P.O. Box 642 Modesto CA 95353
Each proposal shall be submitted electronically by email on September 21, 2023, no later than 5:00PM.

Should you have any questions, please direct them to [email protected]. All questions will be gathered and issued out to all parties in the form of an addendum to this request for proposal.

I hope this opportunity will be of interest to you and look forward to your response.

Sincerely,

Trevin W. Barber
Economic Development Manager
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
Volume 1: Technical Proposal and Qualifications
Submitted to:

CITY OF MODESTO, CALIFORNIA
SUBMITTED BY:

In Association with:

Paul M. Saldana, CEcD
Exeter, CA
September 21, 2023
THE NATELSON DALE GROUP, INC .

YORBA LINDA, CA • www.natelsondale.com
O: 714.692.9596 • F: 714.692.9597
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Table of Contents
A. COVER LETTER ............................................................................................................................1 B. PROJECT UNDERSTANDING AND APPROACH ...............................................................................3 C. QUALIFICATIONS OF CONSULTANT STAFF..................................................................................16 D. EXPERIENCE OF THE FIRM .........................................................................................................26 E. PROFESSIONAL REFERENCES .....................................................................................................34 APPENDIX A – LINKS TO SAMPLE WORK PRODUCTS ..........................................................................36 Cover Photo Credit: “The start of Stage 2 in Modesto – Amgen Tour of California 2017” by Ray Rogers – Own work.

Licensed under CC BY-SA 4.0 via Flickr.com – https://flic.kr/p/V8KUb3 #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
1 A. COVER LETTER
The Natelson Dale Group, Inc.

P.O. Box 489
Yorba Linda, CA 92886
(714) 692-9596 phone / (714) 692-9597 fax
E-mail: [email protected]
www.natelsondale.com
September 21, 2023
#7650
Trevin W. Barber
Economic Development Manager
City of Modesto
P.O. Box 642
Modesto, CA 95353
Dear Mr. Barber:

In response to your request, The Natelson Dale Group, Inc. (TNDG) is extremely pleased to submit this proposal to prepare a series of Economic Development Plans for the City of Modesto. Our team for this submission includes our close affiliate Paul Saldana (dba Economic Growth Strategies).

The Natelson Dale Group, Inc. (TNDG) is a national economic consulting firm established in California in 1974. Our practice focuses largely on the planning and implementation of economic and workforce development programs. The firm’s work often involves direct linkages between a community’s industry attraction plans and its real estate development potentials. In this regard, we have a strong understanding both of local real estate markets and of the larger regional economic trends that drive demand for commercial and industrial land use.

In addition to our long track record in real estate market analysis and economic development strategic planning, TNDG also maintains an active role in supporting California’s economic development community and advancing best practices within the profession. In this regard, the firm (in 2018) took the lead on behalf of the California Association for Local Economic Development (CALED) and the California Academy for Economic Development (CAED) on the implementation of a California-specific training and certification program for economic development professionals (the “ACE” program launched in 2019). The firm’s Managing Principal (Roger Dale) currently teaches the annual course on economic development strategic planning as part of the ACE program.

Paul Saldana of Economic Growth Strategies has both a consulting background and extensive hands-on experience as an economic development practitioner. Based on his intimate familiarity with corporate site selection processes and his direct experience in crafting incentive packages to win major business attraction deals, he would support the TNDG team on the following key aspects of the assignment:
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
2 preparing the economic development marketing plan, and defining competitive, fiscally responsible incentive policies. He would also be a principal participant in our stakeholder outreach effort.

I am the corporate officer authorized to contractually bind the firm and would serve as the City’s primary point of contact for this contract. We hereby agree to be bound during the term of the agreement to all representations made in the attached proposal. All elements of our proposal are valid for a period of 90 days. We acknowledge receipt of Addendum No. 1 to the City’s request for proposals (RFP).

We very much appreciate your consideration of our team and sincerely hope we have the opportunity to serve the City of Modesto on this exciting project.

Respectfully submitted,
Roger Dale
Managing Principal
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
3 B. PROJECT UNDERSTANDING AND APPROACH
Understanding of the Assignment
The TNDG team understands that the City of Modesto expects this process to result in three distinct economic development plans:

1. An economic development strategic plan (EDSP);

2. An economic development marketing plan (ED Marketing Plan); and

3. An Economic Development Element (EDE) of the City’s General Plan.

The EDSP will align with and support the City’s 2020-2025 Strategic Plan, the General Plan 2050 Comprehensive Update, the Downtown Modesto Master Plan, the Local Hazard Mitigation Plan Update, the City’s capital improvement programs, the Modesto Housing Plan, and a possible EIFD Infrastructure Development Plan. Where appropriate, the EDSP will also align with other current City of Modesto planning initiatives such as the Southwest Modesto Plan.

Based on the specifications indicated in the City’s request for proposals (RFP) and clarifying addendum, TNDG further understands that ED Marketing Plan is not expected to re-work any of the City’s existing community wide branding strategy, but is instead intended to focus on brand position and messaging strategies for office and industrial attraction.

The EDSP and the General Plan Economic Development Element will be distinct from each other in the following respects:
• Planning horizon: EDSP’s typically have a “shelf life” of 5-10 years, whereas General Plan Elements tend to get updated less frequently. As such, an EDE typically provides a longer-horizon policy framework for economic development (within the context of the City’s General Plan) whereas an EDSP focuses on immediate and mid-term strategies and action items. • Level of specificity: Reflecting the differences in time horizon, Economic Development Elements are appropriately focused on establishing an overall vision for economic development (again, within the context of the General Plan) and providing a series of broad policies to support realizing the vision. In contrast, EDSP’s are more tactically oriented and focused on the specific steps (“the how”) involved in implementing the broader agenda established by the EDE.

As further detailed in TNDG’s proposed work scope below, the process of developing the three plans will include the following components:
• Task 1 – Initiation, Market Assessment, and Baseline Profile • Task 2 – Stakeholder Engagement and Visioning (TOWS Matrix) • Task 3 – Administrative Draft Plans
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
4 The structure and order of tasks in TNDG’s proposed scope of work is based on the team’s successful experience in preparing economic development strategies for numerous comparable communities. As shown below, the scope will cover all tasks specified in the City’s RFP:

RFP Tasks Corresponding TNDG Tasks
Task 1 – Initiation, Market Assessment, and
Baseline Profile
Task A – Review and analysis of existing
demographic and socioeconomic data, labor
force characteristics, sales tax revenue and
other key economic data
Task C – Market Potentials Analysis (target
industry/cluster analysis and real estate
demand projections)
Task 2 – Stakeholder Engagement and Visioning
(TOWS Matrix)
Task B – Review and analysis of the primary
strengths, weaknesses, opportunities, and
threats that directly impact the economic
competitiveness of the City (SWOT matrix)
Task E – Stakeholder/community
engagement
Task 3 – Administrative Draft Plans Task D – Preparation of customized, locally based economic development plans setting
forth goals and objectives for taking
advantage of the opportunities and solving
the economic development challenges of the
City, including suggested activities, projects
and programs to implement goals set forth in
the plans (EDSP, ED Marketing Plan, ED
Element)
Task 4 – Presentation and Report Summarizing
Findings and Recommendations
(Part of the Task E stakeholder and
community engagement process)
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
5 Project Approach (Proposed Scope of Work)
Our overall approach to the assignment will include a balanced mix of:
 Background research and technical analysis by the consultant team;  An extensive stakeholder engagement process;
 Appropriate integration of the City’s existing economic, community and workforce development programs (including relevant regional initiatives);  Close coordination with City staff throughout the planning effort; and  Preparation of action-oriented strategic plans that reflect Modesto’s unique market opportunities, stakeholder consensus on priorities, and our team’s intimate familiarity with contemporary best practices for local economic development.

The specific tasks proposed for each component of the work scope are outlined below. The structure and order of tasks is based on TNDG’s successful experience in preparing economic development strategies for numerous comparable communities.

A. Review and analysis of existing demographic and socioeconomic data, labor force characteristics, sales tax revenue and other key economic data.

A.1 Review of City Documents / Project Kickoff Meeting. The TNDG team will facilitate a virtual kickoff meeting with City staff to review the overall work scope and project schedule; identify any existing City documents/resources relevant to the process; establish protocols for team communications; begin to identify key stakeholders to include in the outreach effort; and refine the stakeholder engagement strategy (TNDG’s initial recommendations are outlined below, but it is our expectation that this approach would be further customized to reflect the City’s preferences).

A.2 Compile and Analyze Key Datasets. To support and contextual the subsequent technical studies, TNDG will compile background information from a range of public and private data sources including the following:
• U.S. Census / American Community Survey (ACS)
• Stanislaus Council of Governments (SACOG)
• Stanislaus County Assessor’s Office
• California Department of Finance (DOF)
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
6 • California Department of Tax and Fee Administration (CDTFA) • California Employment Development Department (EDD)
• U.S. Bureau of Labor Statistics (BLS)
• Commercial/industrial real estate market data (CoStar) • EMSI/Lightcast (for existing and projected employment, by detailed industry and occupation)
Where appropriate, demographic and economic data will be evaluated at multiple levels of geography (city, county, and state) to allow for comparison of local conditions to reference-area benchmarks. In addition, TNDG will customize the study geographies to reflect Modesto’s strategic market position relative to the surrounding region.

Deliverable for Task A:

Technical report summarizing key data sets compiled for the assignment B. Review and analysis of the primary strengths, weaknesses, opportunities, and threats that directly impact the economic competitiveness of the City (SWOT matrix) TNDG will prepare a comprehensive strength-weakness-opportunity-threat (SWOT) analysis to guide the subsequent strategy formulation tasks. The SWOT analysis will be based in part on direct input from key local stakeholders. As such, the SWOT review will be closely coordinated with the initial stages of TNDG’s stakeholder outreach process.

The SWOT summary will quantify Modesto’s potentials for quality economic growth, based on the following information sources: the baseline data compiled in Tasks A.1 and A.2; input from stakeholders; and the consultant team’s longstanding knowledge of economic development “best practices.” The SWOT summary will consider the following issue categories:
• Geographic setting (including topography, climate, resources, etc.) • Proximity to larger economic regions
• Demographic makeup (existing and projected)
• Workforce availability and skill levels (for the City and the larger “commute shed” region in which it is located)
• Workforce commute patterns (for residents commuting out of City and workers commuting into City)
• Education system
• Existing economic base (i.e., mix of industry types)
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
7 • Infrastructure conditions and capacity (including transportation access and broadband service)
• Housing availability and affordability
• Quality of life
• Community image
• Resident/community attitude towards growth
• Economic development partnerships (public and private) • Economic development incentives
The SWOT summary will identify the core strengths and opportunities that Modesto can leverage for desired economic growth and prioritize these opportunities to allow for a strategic approach to marketing the community (i.e., within the ED Marketing Plan to be developed later in the process). With respect to weaknesses and threats, the SWOT will distinguish between issues that can realistically be mitigated and issues that are likely to be permanent constraints (thereby helping to define types of economic growth that are not realistic targets for the City).

A key focus of the SWOT analysis, which will be further explored during the stakeholder outreach program (Task E below), will be to identify the essential qualities and values that make Modesto unique, and to engage the community in a dialogue about the most effective ways to leverage those unique assets to create quality economic growth. In working with the community to identify the qualities that should be retained and protected, it will also be important to identify the types of economic activities that the community does not want to emphasize in future economic development efforts. These core community values will be reflected in all subsequent tasks of the strategic planning process.

Value-added task: Consumer Segment Report
As part of the larger SWOT analysis, the TNDG team will provide a detailed breakdown of Modesto’s resident spending potentials (“effective buying income”) by means of a consumer segment report (i.e., psychographic segmentation). This segmentation data will be further leveraged in the Task C.2 retail market analysis and will be helpful in a number of contexts relevant to the EDSP – from retail recruitment to considering education and medical service needs.

Deliverable for Task B:

SWOT Summary and Matrix (draft and final reports)
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
8 C. Market Potentials Analysis
As detailed below, TNDG’s market potentials analysis would include two major components:
• A business/industry sector analysis to identify specific industries/clusters that would offer strong potentials for high-quality economic growth in Modesto; and • A real estate market analysis to forecast demand for new commercial and industrial development in the City.

C.1 Business Sector Analysis (identification of target industries/clusters). The target industry analysis would include the following steps:

A. Identify and review documentation for regional and partner-led industry targeting efforts (e.g., the Stanislaus County CEDS).

B. Complete city-level “cluster” analysis to identify candidate industries for Modesto. This analysis will include the following steps:
a. Compile detailed data (6-digit NAICS code level) on current and recent historic employment in the City.
b. Evaluate the City’s comparative strengths relative to the larger (Northern San Joaquin Valley) region, utilizing standard economic analysis techniques such as location quotient and shift-share analysis.
c. Evaluate City’s linkages to relevant regional industry clusters. d. Conduct a supply chain analysis to determine what businesses are purchasing outside of the region and look for opportunities to bring in new businesses to serve these unmet needs.
e. Provide a specific list of target businesses with contact information (this list will be incorporated into the ED Marketing Plan work product).

To facilitate efficient completion of the target industry/cluster analysis, TNDG would utilize customized employment data from EMSI (now Lightcast).
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
9 Value-added task: Integration with Stanislaus 2030 Investment Blueprint The Stanislaus 2030 Investment Blueprint is a bold action-oriented agenda that is intended to position Stanislaus County as a leader in several high-value industries. As part of the larger industry cluster analysis, the TNDG team will identify opportunities for Modesto to capture and leverage opportunities within the Blueprint (while also defining ways in which Modesto can uniquely distinguish itself within the region).

C.2 Consumer Demand Analysis and Commercial/Industrial Market Projections. Utilizing the datasets compiled in Task A.2, TNDG will prepare customized versions of its real estate demand forecasting models. These models project future opportunities for local development based on anticipated population, employment and tourism growth. The models consider the existing and future demographic makeup of the City’s resident population, as well as potential consumer demand from regional residents and visitors. The models address the following land uses:
• Retail/restaurant space
• Office space
• Industrial/R&D space
The “bottom line” findings of the real estate demand analyses will be expressed in terms of square feet of supportable building space by land use (over a 10-year forecast horizon). The retail demand/void analysis will identify specific opportunities for additional retail/restaurant development (or new retail/restaurant tenancies in existing space) in Modesto, in sufficient detail to serve as the foundation for a retail tenant recruitment campaign (e.g., in support of the Downtown Master Plan).

Deliverables for Task Group C:

Summary report (draft and final) for Business/Industry Sector Analysis Summary report (draft and final) for Real Estate Market Analysis #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
10 D. Preparation of customized, locally based economic development plans setting forth goals and objectives for taking advantage of the opportunities and solving the economic development challenges of the City, including suggested activities, projects and programs to implement goals set forth in the plans (EDSP, ED Marketing Plan, ED Element) D.1 Economic Development Strategic Plan (EDSP). The TNDG team will integrate the findings and strategic implications from all preceding tasks into a detailed Economic Development Strategic Plan (EDSP) for Modesto. The EDSP will provide a detailed blueprint for the City’s economic development programming, with recommendations for attracting, strengthening, and sustaining the identified set of target industries and implementing other strategies. The Implementation Plan will be organized in terms of the following elements:
 Strategy for Business Retention/Expansion/Attraction and Entrepeneurial Development reflecting the specific industry clusters and market segments identified in the technical analyses. The target industry strategy will include the following components:
• Specific recruitment targets.
• Workforce development strategies oriented to the needs of the priority industry clusters.
• Recommendations regarding physical infrastructure improvements and other “capacity building” issues relevant to the targeted industry clusters. • Recommended marketing framework for a cluster-based strategy (potentially in tandem with regional marketing initiatives – this component will be more fully detailed in the separate ED Marketing Plan).
• Strategies for supporting and encouraging entrepreneurship and innovative activities within targeted industry clusters.
 Strategies to support the City’s Downtown Master Plan, including specific recommendations for future enhancements to the land use and business mix (based on TNDG’s market analysis) and related placemaking strategies.
 Specific Recommendations for Leveraging Key Regional Initiatives and Resources within the City’s overall development and business attraction efforts.  A strategy to address Foundational Elements, including: 1) recommendations regarding physical infrastructure improvements and other “capacity building” issues affecting the viability of the target clusters, 2) integration of existing assets such as educational and workforce development systems, and 3) recommended measures to ensure the City’s “business friendliness” (reflecting key competitiveness issues identified in the proceeding tasks).
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
11  Specific Recommendations for Economic Incentives the City could utilize to attract targeted development and business types (see “value added” box below for additional details).  A Prioritization Matrix indicating the potential timing of the various action items, and identifying the specific projects and programs that would provide the best leverage of available resources.
 Recommended Staffing/Organizational Structure for the City’s economic development programming (these recommendations will reflect the extent to which the City prefers to manage some portions of the program through partnerships with external organizations).  A Responsibility Matrix indicating the entities who would most appropriately be tasked with carrying out various action items (including collaborating regional agencies and private sector “partners”).
 A Monitoring Program to track the implementation of the Plan and to refine strategy objectives over time. The monitoring program will include performance-based “metrics” utilizing readily available data sources.

Value-added EDSP focus (from City’s 2020-2025 Strategic Plan): Develop a citywide business incentive plan that fosters economic diversification (i.e., infrastructure investments, business attraction, retention and grow local entrepreneurs)
TNDG team member Paul Saldana will lead the development of a Business Incentive Plan, drawing on his 30+ years of experience as a leading economic development practitioner in California (Saldana has created incentive policies for communities ranging in size/population from 15,000 to 400,000). Consistent with GFOA recommendations and policy, the EDSP will define appropriate parameters for the use of incentives, within a framework that is flexible enough to respond to business needs while also serving the best interests of the City and the public (potentially including processes for cost/benefit analysis and assessing the City’s return on investment for financial incentives). In this regard, the EDSP will recognize that the most impactful incentive policies allow for the customization of project-specific incentive “packages” to meet the requirements of individual deals (which Saldana has done throughout his career).

Value-added EDSP focus: Collaborate with local hospitals and medical providers to create a medical district
This concept from the City’s Strategic Plan will be specifically pursued in the EDSP. Building from our prior comparable project experience, the TNDG team will bring together hospitals and medical providers (in a focus group setting) to ascertain needs and opportunities and to identify areas in Modesto where a medical district could flourish. #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
12 Value-added EDSP focus: Public/private partnerships with local firms and educational institutions; collaboration with universities and colleges These priorities in the City’s Strategic Plan are also addressed in the Stanislaus 2030 Investment Blueprint, indicating an opportunity to connect regional initiatives with Modesto’s specific locational advantages. In this context, the TNDG team will explore options for the development of an innovation/technology park in Modesto. TNDG and Paul Saldana have recent experience in planning a similar concept in Bakersfield (which would be a collaboration between the City, the County, CSU Bakersfield, a private industrial developer, and targeted innovation industries). concept from the City’s Strategic Plan will be specifically pursued in the EDSP.

Value-added EDSP focus: Competitive Advantage on Electricity Rates The Modesto Irrigation District – which has a price advantage over nearly all other electric utilities in California – represents a tremendous strategic tool to Modesto. The TNDG team will specifically leverage this advantage within the EDSP and ED Marketing Plan.

Value-added task: Amendments to other City plans/policies To facilitate seamless implementation of the EDSP, TNDG team member Paul Saldana will draft recommended language for amendments to the Municipal Code and relevant City plans (specific plans, etc.) that might require updating to be fully in alignment with proposed EDSP actions.

D.2 Economic Development Marketing Plan. As an adjunct to the EDSP, the TNDG team will prepare an Economic Development Marketing Plan focused on office and industrial development and tenant attraction. Consistent with the City’s expectations, the ED Marketing Plan would be compatible with (and, where appropriate, integrated with) Modesto’s existing community wide branding strategy. The Marketing Plan will include the following components:
 Quantified targets for office and industrial development attraction by year (based on TNDG’s real estate market analysis)
 Specific targets (by industry/cluster) for business attraction  Brand positioning and messaging strategies for targeted office and industrial development  Content for a brochure (“The Modesto Advantage”) highlighting Modesto’s key selling points as a business and development location
 Profiles of key opportunity sites for office and industrial development  “Menu” of incentives to be promoted as part of City’s messaging about office/industrial development opportunities
 Lists of external firms representing an initial set of prospects for the City’s business attraction marketing (focusing on office and industry tenant types)  Recommended online/social media marketing strategy
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
13 D.3 Economic Development Element. In support of the City’s concurrent General Plan Update, the TNDG team will prepare an Economic Development Element providing a comprehensive policy framework to support implementation of impactful economic development programs and to effectively integrate economic development functions with other City policies and planning processes.

Important General Plan themes related to economic development The Economic Development Element will incorporate the following themes from the General Plan White Paper:
• Expansion of Existing Homegrown Business
• Identify Workforce Clustering and Upskilling Needs
• Target Business Typologies, Marketing and Recruitment Whereas these topics (and others identified by the TNDG team) will be addressed at a “landscape” policy level in the Economic Development Element, they will be translated into actionable implementation strategies in the EDSP and ED Marketing Plan.

Deliverables for Task D:

EDSP document (draft and final)
ED Marketing Plan (draft and final)
Economic Development Element (draft and final)
E. Stakeholder / Community Engagement
TNDG’s proposed stakeholder/community engagement process will include the following components:
• Three (3) invitation-only stakeholder workshops billed as the “Modesto Economic Development Summit” (designed to be a progressive series of meetings for selected “Csuite” level stakeholders); • Two (2) community workshops, including one (1) oriented toward residents and one (1) oriented toward business stakeholders;
• Presentation of the final Plans to the Modesto City Council for consideration and approval; • Presentation of the final Plans other key partners/stakeholders; and • Ongoing coordination meetings with City staff.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
14 Value-added task: Online community survey
To complement the in-person stakeholder outreach, the TNDG team would design and manage an online survey (in English and Spanish) to efficiently enable the general public to identify ideas, concerns and priorities for the City’s economic development programs.

The proposed formats of the stakeholder (“Summit”) meetings and community workshops are described below. For budget purposes, all meetings are assumed to be in-person. However, TNDG can also facilitate remote meetings as needed, based on the City’s preferences at the time of this process.

E.1 Economic Development Summit Meetings. TNDG proposes to work with City staff to identify a broad range of executive-level public and private stakeholders to be invited to participate in a series of three 2-hour workshops to guide preparation of the EDSP. In TNDG’s experience, the size of these meetings is typically about 50 participants (but in some cases we have had as many as 100 participants). The invited stakeholders would include a mix of public and private sector leaders in the following categories: key City departments, regional economic development partnerships, local business organizations (e.g., Chamber of Commerce), education/workforce development organizations, real estate development community (selected commercial/industrial brokers and developers), and major private sector employers. Three senior members of the TNDG team would attend each meeting and serve as facilitators.

The proposed sequence of the Summit meetings would be as follows:
• Summit Meeting #1 would be concurrent with the SWOT analysis (Task B) and would have two major purposes: (a) the TNDG team would present key findings from the team’s initial technical studies; and (b) TNDG would facilitate a group discussion to get the stakeholders’ preliminary ideas on key issues, constraints and opportunities affecting Modesto’s economic development potentials.
• Summit Meeting #2 would occur approximately mid-way through the process. At this meeting TNDG would present a preliminary strategic framework for the plan and then facilitate a group discussion to get stakeholder input on potential implementation strategies.
• Stakeholder Meeting #3 would occur near the end of the process. At this meeting TNDG would review the Draft EDSP (which would be circulated to the participants in advance of the meeting) and will get feedback from the stakeholders regarding: (a) prioritization of the specific strategies included in the plan, and (b) designation of “lead entities” (i.e., specific City departments and/or external “partner” organizations) for each implementation strategy.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
15 E.2 Community Workshops. TNDG’s budget for this proposal includes a total of two (2) community workshops: one (1) workshop oriented toward Modesto residents and one (1) workshop oriented toward the business community. The purpose of these meetings would be to present a draft of the EDSP and to get community input (via facilitated workshops) on prioritization of EDSP programs and action items.

E.3 Plan Roll-out. TNDG’s work scope for this assignment allows for a full month (after finalization of the Plan documents) to roll-out the plan via presentations to the following key audiences:
• City staff (special meeting of selected department heads, etc.) • Mayor and City Council
• Economic development partners and stakeholders (this would be an extra meeting in addition to the three “Summit” workshops described in Task E.1) TNDG will prepare a visually attractive PowerPoint presentation or other media (see example in box below) for use with the above groups. TNDG’s Managing Principal (Roger Dale) would be the lead presenter and would respond to stakeholder (or media) questions after the presentation.

Example of innovative roll-out presentation
The TNDG team uses a variety of modalities for communicating strategic recommendations to city officials and their constituencies. As an example of an innovative presentation of a strategic plan, the following link provides a pre-recorded (13-minute) video presented (by TNDG Principal Roger Dale) to the Antioch, CA City Council:
https://www.antiochca.gov/economic-development/economic-development-strategic-plan/ Sample work products
Appendix A of this proposal provides web links to recent EDSP work products completed by our team. Although all of our work products are highly customized to reflect the unique circumstances, needs and opportunities of each client, the provided samples provide a good indication of the level of detail and overall quality of work that Modesto can expect for this project.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
16 C. QUALIFICATIONS OF CONSULTANT STAFF
Team Organization. An organizational chart for our team is provided below, followed by resumes for each team member.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
17 Roger Dale, MANAGING PRINCIPAL • TNDG
Overview. Roger Dale has been affiliated with The Natelson Dale Group, Inc. (TNDG) since 1988 and serves as the firm’s managing principal. His background encompasses the fields of real estate development, economic development, regional economic analysis, environmental and land use policy, and renewable energy. His project experience includes real estate market forecasting, fiscal impact analysis, business retention/attraction, and preparation of regional-scale economic development strategic plans. He has prepared real estate forecasts for municipal planning efforts throughout California and Arizona. Mr. Dale has also prepared market and financial feasibility analyses for private developers. Key projects include a 4,200-acre subdivision in Moorpark, California; an 885-acre mixed use development on the Big Island of Hawaii; a tourist-oriented retail/restaurant complex in Honolulu; several regional shopping centers in southern California; a 3,200-unit residential development in the Santa Clarita Valley; and a master planned community in Yokohama, Japan.

Mr. Dale has completed numerous fiscal impact analyses and developed customized software models to enable municipalities to assess the fiscal impacts of proposed general plan amendments, annexations, and individual development projects.

Over the past 25 years, a significant focus of Mr. Dale’s work has been on the development of clusterbased economic and workforce development strategies. In this regard, he has managed industry cluster analyses and developed related retention/ expansion/attraction plans for the following clients: the cities of Anaheim, Los Angeles, and Burbank, and San Buenaventura, California; the County of Kern, California; the County of Yuma, Arizona; the High Desert Regional Economic Development Authority (San Bernardino County, California); the Forward Greensboro (North Carolina) Economic Development Partnership; and the Tri-Cities (Tennessee/Virginia) Economic Development Alliance.

Mr. Dale has an active interest in environmental mitigation and habitat conservation planning. For many years he has served on the board of an environmental nonprofit accredited by the Land Trust Alliance. For six years, Mr. Dale served on a technical review team for the Northern and Eastern Colorado Desert Coordinated Management Plan, a multi-agency land use planning effort led by the U.S. Bureau of Land Management.

Reflecting his longstanding interest in sustainability issues, he serves on the Board of the Roberts Environmental Center – a leading publisher of global climate change research and the nation’s foremost analyst of corporate sustainability reporting. He has recently completed feasibility studies and related economic development strategies for solar energy projects in California, Arizona, and China. He has prepared more than 50 economic analyses as part of environmental impact reports, pursuant to the requirements of the California Environmental Quality Act (CEQA).

Education. Mr. Dale received his B.A. cum laude in Economics from Claremont McKenna College in Claremont, California. He also holds a master's degree in Resource and Environmental Economics from the University of California at Riverside. Mr. Dale has also completed certification for “Real Estate Climate Action, Risk Assessment, Resilience, Net Zero Success” through the Harvard Graduate School of Design’s executive education program.

Representative Project Experience in Economic Development Strategic Planning (all projects managed by Roger Dale): (projects are shown by client name followed by project name) #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
18 • Kern County, California: Analysis of Potential Economic Benefits of Carbon Management Industry (2023)
• Sonoma County, California: Comprehensive Economic Development Program Review (2022) • Antioch, California: Economic Baseline and Strategic Plan (2022) • Bakersfield, California: Economic Development Strategic Plan (2021) • Vista, California: Economic Development Strategic Plan (2021) • Menifee, California: Comprehensive Economic Development Strategy (2019) • Beaumont, California: Economic Development Strategic Plan (2019) • San Bernardino, California: Comprehensive Economic Development Strategy (CEDS) for IVDA/SBIAA (2018)
• Camarillo, California: Economic Development Strategic Plan (2018) • Palm Desert, California: Economic Development Strategic Plan (2018) • Ventura County, California: Economic Vitality Strategic Plan (2017) • Larimer County (Fort Collins), Colorado: Economic Development Asset Assessment (2016) • Kyle, Texas: Target Industry Study and Economic Development Strategic Plan (2015) • Yuma, Arizona: IMCP Strategic Plan (2014)
• Garland, Texas: Target Industry Strategy (2014)
• Escondido, California: Economic Development Master Plan (2013) • Osceola County, Florida: Economic Diversification Strategy (2012) • Los Angeles, California: Economic Development Strategy for Solar LA (2009) • Northeast Tennessee/Southwest Virginia: Target Industry Analysis (2006) • Ventura, California: Business Plan for “Eco Industry” Industrial Park (2003) • The National and Regional Directory of Targeted Growth Industries (2002) • Greensboro (Guilford County), North Carolina: Industry Attraction Strategy (2001) #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
19 Alan Levenson, SENIOR ASSOCIATE • TNDG
Overview. Mr. Levenson brings to The Natelson Dale Group, Inc. an academic background in economic theory with particular emphasis on economic development. Prior to joining the firm, Mr. Levenson spent two years as a research consultant for NEMESIS (Núcleo de Estudos Modelos Espaciais Sistêmicos), which is a research network dedicated to the study of systemic spatial models of the Brazilian economy.

A significant focus of Mr. Levenson’s work at TNDG has been on preparing regional economic impact analyses for a wide range of projects. Among others, these projects have included a major regional health care facility in Riverside, CA, a technology and education park in Tustin, CA, a business park in Victorville, CA, and a highway construction interchange project in Pima County, AZ. These analyses have involved modeling various projects’ short-term (construction-phase) and permanent (annually recurring) benefits to the regional economy. The benefits have been summarized by estimating a project’s impact on total gross output, value added, earnings, and employment in the region. As part of this work, Mr. Levenson has experience with the major economic impact modeling software packages, including the Bureau of Economic Analysis’s Regional Input-Output Modeling System (RIMS) and the Minnesota Implan Group’s IMPLAN program.

Mr. Levenson has managed the preparation of a number of regional economic development plans, with a particular focus on industry “cluster” strategies. This work has involved a wide range of activities: from performing quantitative/ statistical analysis to more qualitative analysis, including conducting numerous interviews with key players of potential clusters. Mr. Levenson has participated in industry cluster studies for the following clients: the Forward Greensboro (North Carolina) Economic Development Partnership, the Tri-Cities Tennessee Cluster Study (Tennessee), the Yuma Private Industry Council (Arizona), and the City of San Buenaventura (California).

Education. Mr. Levenson joined TNDG after receiving his B.A. with honors in Economics and Political Science from the University of California at Riverside. Mr. Levenson’s undergraduate studies included additional coursework in applied mathematics related to economic analysis. He also holds a Master’s in Business Administration degree, with a concentration in Real Estate Finance, from UCLA’s Anderson School of Management.

Representative Project Experience in Economic Development Strategic Planning (Alan Levenson served as Project Associate): (projects are shown by client name followed by project name) • Kern County, California: Analysis of Potential Economic Benefits of Carbon Management Industry (2023)
• Antioch, California: Economic Baseline and Strategic Plan (2022) • Bakersfield, California: Economic Development Strategic Plan (2021) • Vista, California: Economic Development Strategic Plan (2021) • Menifee, California: Comprehensive Economic Development Strategy (2019) • Beaumont, California: Economic Development Strategic Plan (2019) • Camarillo, California: Economic Development Strategic Plan (2018) • Palm Desert, California: Economic Development Strategic Plan (2018) • Stockton, California: Economic Development Strategic Plan (2015) • Kyle, Texas: Target Industry Study and Economic Development Strategic Plan (2015) • Yuma, Arizona: IMCP Strategic Plan (2014)
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
20 • Escondido, California: Economic Development Master Plan (2013) • Osceola County, Florida: Economic Diversification Strategy (2012) • Yuma County, Arizona: Workforce and Economic Development Summit (2001, 2011) • Los Angeles, California: Economic Development Strategy for Solar LA (2009) • Northeast Tennessee/Southwest Virginia: Target Industry Analysis (2006) • Anaheim, California: Industry Location Analysis and Attraction Strategy (2005) • Ventura, California: Business Plan for “Eco Industry” Industrial Park (2003) • The National and Regional Directory of Targeted Growth Industries (2002) • Greensboro (Guilford County), North Carolina: Industry Attraction Strategy (2001) #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
21 Joseph McClure, SENIOR ASSOCIATE • TNDG
Overview: Joe McClure has served as principal or in other key roles in land economics research and advisory-services organizations for over 35 years. During this period, Joe’s practice has focused on the following outputs:
• Economic development strategic focus: consolidating views on a region’s economic development targets, workforce, issues, and approaches, integrating target industries into the local economy, and relating a region’s existing economic base to its competitive region. • Market analyses with fiscal and strategic components: highest and best use analysis, analysis of rapidly growing trade areas, cash flow and development strategy analysis, fiscal benefits of development.
• Fiscal/economic analyses with a strategic component: impacts on the business community and tax receipts from freeway and other road projects, and assessing redevelopment prospects of underperforming areas. • Special research projects, including studies of local labor forces and employer-employee relations, economic impacts of bicycle recreation, and transit behaviors and opinions in rural regions.

Mr. McClure’s multidisciplinary background incorporates many phases of the community and real estate development process: economic analysis and strategy development, market and financial feasibility assessment, and planning and design. Joe has a M.S. in Urban Planning, in a program that emphasized regional economics, from the University of Arizona and completed additional postgraduate work in economic geography at UA. He has a B.S. in Architecture from the University of Cincinnati. Mr. McClure is a registered architect in Arizona and a member of the Western Regional Science Association (WRSA)—an international group of economic geographers, the Urban Land Institute (ULI), and the Arizona Association for Economic Development (AAED). He has presented papers on business and economic development issues at economic development conferences, has served as Adjunct Lecturer at the University of Arizona in the Geography and Regional Development program, and on ULI Advisory/Technical Services Teams.

McClure served as a Civil Engineering Officer in the U.S. Air Force.

Education: Joe has an M.S. in Urban Planning, in a program that emphasized regional economics, from the University of Arizona and completed additional post graduate work in economic geography at UA. He has a B.S. in Architecture from the University of Cincinnati.

Representative Project Experience in Economic Development Strategic Planning Note: please also see all projects managed by Roger Dale listed within his resume, above, for J. McClure experience):

Some additional projects of Joe McClure his that are not already mentioned elsewhere in this proposal include:

ULI Technical Assistance Panels (2017, 2019). For ULI Arizona Technical Assistance Panels, McClure joined a group of planners, architects, engineers, and developers researching conditions related to generating alternatives to revitalizing the 32nd Street Corridor in Phoenix north of Shea Boulevard, and for revitalizing Downtown Eloy, Arizona.

Market Assessment and Benefits Analysis for CityScape, a Downtown Phoenix Destination Retail Center (2015 and prior). Estimated fiscal benefits to a participating jurisdiction from major redevelopment project #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
22 that considerably boosted the potential for Downtown Phoenix to be a destination for office and commercial activity.

Identification and Review of Key Economic Development Influences, Town of Florence (2020).

Documented a wide range of economic, development, demographic, and tourism data as a background to preparing an initial assessment of the Florence economy in relation to the surrounding region, including Pinal County and parts of metro Phoenix and Tucson.

Market and Economic Development Feasibility Study for Navajo Nation FBFA Area (2018). Analysis to determine the commercial development potential of a nine-chapter region and several specific site areas, through a market demand analysis of multiple trade areas. Project included evaluation of tourism activity and potential, including transportation access and linkages with regional destination attractions. (As IDS+A team member).

Economic Impacts of Bicycling in Arizona, for AZ Department of Transportation (2013). McClure Consulting was prime contractor for this project, which involved a variety of research processes including contacting all bicycle dealers and bicycle event and tour operators in Arizona, compiling primary and secondary data on sales, event details, etc. and estimating expenditures by out-of-state visitors to AZ.

Estimating process included compiling state and national-level data on sales patterns, tourist spending, and other details.

Transit in Greater Arizona, for the Arizona Department of Transportation (2017). McClure Consulting was prime contractor for this project, which involved multiple research steps including an in-depth survey of households in Greater Arizona, and inventory of transit providers, and an online survey of providers, and an extensive literature review and compilation of information relevant to a future state transit plan.

Smart Transportation Guidebook, for the Arizona Department of Transportation (2014). McClure Consulting was a subcontractor for this project, providing input on economic considerations related to various transportation planning, policy, and infrastructure issues. The project included extensive research focused on literature pertaining to these issues.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
23 Joe Collins, ASSOCIATE • TNDG
Overview: Joseph Collins serves as a Research Associate for TNDG. Over the years, his professional career has involved him in a variety of both private and public projects in the Midwest and Southwest US. His varied experience includes: fiscal and land economic feasibility analysis, geospatial and descriptive data analytics, graphic presentation, market analysis, and the practice of urban planning and development, as summarized below.
• Market Analysis of Greater Phoenix Metropolitan Area for Industrial, Multifamily, Office, and Retail Real Estate Inventory.
• Analyzing required development improvements and associated costs pertaining to large tracts of land planned for single-family residential subdivisions and planned industrial pad sites. • Analyzing costs/benefits of single-family residential development versus various commercial development options within municipalities.
• Analyzing the costs/benefits of annexation of established residential subdivisions. • Conducting land use analysis and absorption studies, and real estate appraisal and market analyses.
• Geospatially analyzing building, property, land use, zoning, parking, traffic, demographic, economic, financial, tax, and other associated qualitative/quantitative data for various projects. • Developing a Geographic Information System (GIS) relational parcel database for various properties located in a downtown area.
• Providing graphic support in the creation of various reports, exhibits, presentations, and other associated media used to present to the public, various boards and commissions, city councils, non-profit associations, and private clients.
• Providing project coordination for the creation of an interactive website for departmental customer service.
• Conducting research and technical analysis to evaluate findings and/or to take action on various real estate development applications, land use decisions, and processing other regulatory actions associated with the development of real estate.
• Designing marketing and relocation packages for potential businesses looking to purchase and/or lease property.
• Reviewing construction plans for conformance with applicable city regulations, policies, and requirements.

Certain elements of the work described above were accomplished through the following entities, in addition to his experience with TNDG:
• Downtown Partnership of Hutchinson, Kansas
• Dan Weir Real Estate Company, CCIM
• City of Olathe, Kansas
• City of Scottsdale, Arizona
• Valuation and Advisory Services, CB Richard Ellis
Education: Mr. Collins obtained a M.B.A. from Grand Canyon University in Phoenix, Arizona, a M.S. in Regional and Community Planning from Kansas State University in Manhattan, Kansas, and a B.S. in Geography/Community Planning from Kansas State University. In addition, he has completed coursework for general real estate appraisal at the Arizona School of Real Estate and Business in Scottsdale, Arizona. #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
24 Paul M. Saldana, CEcD
Overview
Paul Saldana has served as an economic and business consultant and an economic development practitioner, leading city, county, and regional economic development organizations, along with various academic roles in the economic/economic development field. He is responsible for 16 national, state, and regional awards for economic development programs and has received numerous individual recognitions for professional achievement and advocacy.

Education
 California Baptist University, Doctor of Education, Organizational Change & Administration (ABD 9/24)
 Crown College, Master of Business Administration (4.0 GPA)  Crown College, Bachelor of Science, Business Administration (With Distinction – 4.0 GPA) Certifications & Credentials
 International Economic Development Council, Certified Economic Developer (CEcD)  California Commission on Teacher Credentialing, Career Technical Education Credential  California Commission on Teacher Credentialing, Substitute Teaching Credential Professional Experience
Economic & Business Consultant
dba Economic Growth Strategies, November 2020 to Present, Selected engagements:
• Small Business Advisor: Structure and deliver technical assistance to small business clients, including business planning, marketing, and financial management. • Economic Development Strategic Plan: Completed a regionwide economic development strategy for a city in the southern US, home to a major university and historic downtown features. • Comprehensive Economic Development Strategy: Prepared the 5-year CEDS (EDA funded) for a California Indian Tribe, including a target strategy and tribal business opportunities analysis. • Airport Target Market Analysis: Developed a target industrial analysis, marketing strategy and land use concepts for a special-district-owned airport in Southern California, with a focus on advanced aeronautics and UAV technologies.
• Pandemic Economic Recovery & Resiliency Plan: Prepared an economic recovery and resiliency plan for multi-county region in California, with update to the current CEDS. • Recovery & Resilience Strategies for Pandemics: Provided technical assistance in the development of a regional economic resilience program in rural Washington state. • Tourism Destination Marketing Strategy: Prepared a destination analysis and marketing strategy for an historic community in Louisiana. Strategy included action steps and anticipated outcomes.

Director, Economic & Community Development Department. City of Bakersfield (CA) June 2021 to May 2023
Selected Experience Highlights: Led the establishment and organization of the new department. Directed the completion of the City’s Economic Development Strategic Plan, Affordable Housing Strategy and Transformative Climate Communities Plan. Managed budget of $107 million and a staffing complement of

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25 President & Chief Executive Officer. Economic Development Corporation, Tulare County, CA, January 2001 to November 2020
Selected Experience Highlights: Led the nonprofit organization to international accreditation and national acclaim. Formulated site selection proposals for companies, including analysis of demographic, socioeconomic, consumer, business, and workforce data, resulting in the creation of thousands of new jobs for residents. Engineered the achievement of federal and state designations, including enterprise/incentive zone, opportunity zone, tourism welcome center and small business loan programs.

Director, Community & Economic Development Department, City of Atascadero, CA, February 1998 to January 2001
Managing Director, Shafter Community Development Agency. City of Shafter, CA, 1992 to February 1998 Deputy Director/Economic Development Consultant. County of Placer, Office of Economic Development (Auburn, CA) January 1991 to December 1992
Economic Development Director/SBDC Director. Inland Empire Economic Council (Ontario, CA) September 1989 to July 1991
Managed the business recruitment and marketing effort for multi-county organization, including providing site selection services for national and international clients. Created and managed the Inland Empire Small Business Development Center and staffed the Global Trade Association.

Academic Experience
Faculty Member, Finance & Economics, School of Business. Fresno Pacific University (Fresno, CA) July 2021 to present
Adjunct Faculty, School of Business. Crown College (Saint Bonifacius, MN) July 2020 to August 2021 Assistant Director/Faculty Member. CETYS University (Baja California, MX) 2004-2009.

Faculty Member, Economic Development Institute. University of Oklahoma, 1999-2005 Selected Professional Development
 Planning for Economic Recovery, International City Managers Association  Digital Economic Development University, Certified Digital Economic Developer  California Tax Education Council, California Registered Tax Preparer Certification  Johns Hopkins University, COVID-19 Contact Tracing Certificate  International City Managers Association, Planning for Economic Recovery Program  Ernst & Young, Site Selection: Corporate Location in Today’s Rapidly Changing Environment  National Development Council, Economic Development Finance & Credit Analysis  Industrial Development Research Council (IDRC), Site Selection & Location Analysis #3..
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26 D. EXPERIENCE OF THE FIRM
The Natelson Dale Group, Inc. (TNDG) brings exceptional experience in economic development strategic planning to this assignment. From this work, TNDG has developed nationally recognized expertise in the following key areas: 1) Target Industry Strategies and Cluster Development, 2) Retail Demand Analysis and Tenant Recruitment, 3) Integration of Economic Development with Workforce Development, and 4) Structuring of Local and Regional Economic Development Partnerships. The firm’s work often involves direct linkages between a community’s industry attraction plans and its real estate development potentials. In this regard, the TNDG team has a strong understanding both of local real estate markets and of the larger regional economic trends that drive demand for commercial and industrial land use.

An abbreviated listing of TNDG’s relevant project experience is provided below, followed by more detailed descriptions of selected assignments.

Economic Development Strategies
Counties
Guilford County (North Carolina)
Kern County
Larimer County (Colorado)
Los Angeles (San Gabriel Valley subregion)
Osceola County (Florida)
San Bernardino
San Diego (South County Subregion)
San Joaquin County
Sonoma County
Ventura County
Yuma County (Arizona)
Cities
Anaheim
Antioch
Arvin
Bakersfield
Beaumont
Burbank
Camarillo
Canyon Lake
Carson
Coachella
Compton
Coronado
El Cajon
Escondido
Fresno
Garland (Texas)
Kyle (Texas)
Los Angeles
Menifee
Ontario
Palm Desert
Phoenix (Arizona)
Pinole
San Francisco
San Ramon
Santa Fe Springs
Simi Valley
Stockton
Tracy
Ventura
Vista
Indian Tribes
Agua Caliente (Palm Springs)
Cahuilla (Riverside County)
Yavapi-Apache (Arizona)
Larger Regions
Hampton Roads (Virginia) Region (5 counties and 9 independent cities) Tri-cities Area of Northeast Tennessee/Southwest Virginia #3..
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27 General Plan Economic Studies
City of Agoura Hills City of Malibu
City of Alhambra City of Monterey Park
City of Calabasas City of Ontario
City of Bakersfield City of Port Hueneme
City of Beaumont City of Redondo Beach
City of California City City of Rialto
City of Chino City of San Bernardino
City of Costa Mesa City of San Clemente
City of Fontana City of San Ramon
City of Garden Grove City of Santa Fe Springs
City of La Quinta City of Santa Monica
City of Los Angeles City of Santa Paula
Economic Development Strategic Plans:

El Cajon, California: Economic Development Strategic Plan (2022). TNDG prepared an economic development strategy plan for the City of El Cajon in east San Diego County. This work included a target industry analysis, commercial/industrial real estate demand projections, a focused stakeholder outreach process, and preparation of an action plan that leverages the City’s economic development programming through partnerships with an array of regional organizations. El Cajon’s EDSP focuses on the following strategic priorities: revitalization of retail commercial centers; maximizing land capacity for industrial development; expanding the downtown business mix; and promoting entrepreneurial development opportunities.

Sonoma County, California: Comprehensive Economic Development Program Review (2022). For the Sonoma County Economic Development Board (EDB), TNDG conducted a program-by-program review of EDB core services, including evaluation of the following: scope of services offered; program design and allocation of resources; service delivery and execution; program efficacy; and metrics tracked. The project included interviews with a cross section of County staff, community leaders, business owners and other constituents (identified by the EDB). As part of this process, TNDG profiled comparable economic development organizations throughout the Western U.S. to identify best practice models relevant to Sonoma County.

Antioch, California: Economic Baseline and Strategic Plans (2022). TNDG completed an economic development baseline analysis and strategic planning process for the City of Antioch. This assignment included a target industry/cluster analysis, an extensive stakeholder outreach process, and preparation of an innovate strategic plan and implementation “tool kit.” The strategic plan is organized around eight major initiatives: Business Development Pipeline; Real Estate Development Capacity; Workforce Opportunity Initiative; Entrepreneurial Startup Assistance; Direct Project Investment (Public-Private Partnerships); Leveraging Housing Demand to Promote Economic Development; Regional Advocacy; and Resource (“War Chest”) Development.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
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28 Bakersfield, California: Economic Development Strategic Plan (2021). TNDG led an 18-month strategic planning process for the City of Bakersfield, with a focus on identifying major “game-changing” investments the City could pursue with available state and federal recovery funding. TNDG’s work was completed in close coordination with the regional “Better Bakersfield, Boundless Kern” (B3K) initiative facilitated by The Brookings Institution. TNDG’s work included an industry cluster analysis, commercial/industrial real estate market studies, and a comprehensive stakeholder outreach process (including specific engagement with the development community, industry stakeholders, and downtown business/civic leaders).

Vista, California: Economic Development Strategic Plan (2021). TNDG completed a nine-month economic development strategic planning process for the City of Vista in north San Diego County. This work included a target industry analysis, commercial/industrial real estate demand projections, an extensive stakeholder outreach process, and preparation of a strategic plan that leverages the City’s programs through partnerships with an array of regional organizations.

Menifee, California: Comprehensive Economic Development Strategy (2019). TNDG completed a Comprehensive Economic Development Strategy (CEDS) for the City of Menifee. The six-month planning process included a detailed analysis of the community’s economic development assets and opportunities, as well as its current deficiencies and challenges. The background analyses included a target industry study focused on defining potential growth opportunities within the larger Riverside County/San Diego County economy. Given Menifee’s large population of out-commuting high-skilled workers, the industry cluster analysis emphasized potential connections to regional high-tech sectors.

Beaumont, California: Economic Development Strategic Plan (2019). TNDG completed a detailed Economic Development Strategic Plan, including a target industry analysis and commercial/ industrial real estate market forecast, for the City of Beaumont. The Plan focuses on leveraging the City’s strategic location in the eastern Inland Empire, available land resources, skilled resident workforce, and quality-oflife amenities.

Camarillo, California: Economic Development Strategic Plan (2018). TNDG completed a detailed Economic Development Strategic Plan, including a target industry analysis and commercial/ industrial real estate market forecast, for the City of Camarillo. The Plan focuses on improving the City’s business/development friendliness, maintaining the strength of the City’s retail shopping districts, leveraging the emerging cluster of technology start-ups in Ventura County, and pursuing placemaking investments as part of a larger focus on economic vitality.

Palm Desert, California: Economic Development Strategic Plan (2018). TNDG completed a detailed Economic Development Strategic Plan, including a target industry analysis and commercial/industrial real estate market forecast, for the City of Palm Desert. The Plan focuses on leveraging the City’s strategic location within the Coachella Valley and its well-established reputation as a center for tourism, retail trade, and higher education. The implementation plan includes a business incubator/accelerator focused the Valley’s emerging technology cluster.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
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29 San Bernardino, California: Comprehensive Economic Development Strategy (CEDS) for IVDA/SBIAA (2018). TNDG completed a five-year CEDS for the Inland Valley Development Agency (IVDA) and San Bernardino International Airport Authority (SBIAA) in 2018. This process included a series of meetings with the CEDS Committee, as well as direct coordination with five constituent jurisdictions (four cities and Indian tribe) to update strategic priorities and candidate infrastructure projects. The economic and workforce development initiatives include a focus on high-technology sectors related to the region’s aviation and logistics clusters.

Ventura County, California: Economic Vitality Strategic Plan (2017). TNDG completed a comprehensive Economic Vitality Strategic Plan for the County of Ventura. The year-long effort included the following components: an extensive analysis of the current state of the Ventura County economy; an innovative Economic Impact Analysis that gathers and analyzes relevant data sets to quantify the impact of County governmental operations on the local economy; a detailed industry cluster analysis; and extensive stakeholder outreach. Consistent with longstanding community values, the Plan focuses on advancing economic vitality while carefully protecting the region’s amenity-rich, high quality of life environment.

Hampton Roads, Virginia: Strategic Plan for Virginia’s “Growth Opportunities” Program (2017). TNDG served as a subcontractor to Old Dominion University on the preparation of a strategic economic plan addressing challenges among the communities in the Hampton Roads region of Virginia. Blessed by the nation’s largest natural deep-water port and host to the world’s biggest naval base, the Hampton Roads region has nonetheless struggled to recover from decreases in federal procurement spending and curtailed defense spending associated with the Budget Control Act of 2012. The GO Virginia program was created by the Virginia legislature to encourage cross-jurisdictional cooperation to create sustainable regional economic growth.

Larimer County (Fort Collins), Colorado: Economic Development Asset Assessment (2016). TNDG completed a comprehensive assessment of the public, private and institutional “assets” that influence Larimer County’s economic development potentials. The assessment is intended to identify existing strengths that can be better leveraged as well as existing gaps in infrastructure and service provision that warrant future investment by the County.

Kyle, Texas: Economic Development Strategic Plan (2015). TNDG completed a detailed Economic Development Strategic Plan, including a target industry analysis, for the City of Kyle. The Plan focuses on leveraging the City’s strategic location along I-35 between Austin and San Antonio. A key theme of the Plan is to position the City as a destination for regional visitors and higher-value economic activities. The Plan provides a framework for re-organizing the City’s Economic Development Tourism Board, and for reassessing the City’s partnerships with several regional economic development organizations.

Stockton, California: Economic Development Strategic Plan (2015). The TNDG team completed a detailed Economic Development Strategic Plan for the City of Stockton, California. The Plan provides a comprehensive blueprint for the City’s economic development programming as part of an overall restructuring of the municipal government. The planning process included extensive interaction with a range of public and private partner organizations that will have critical roles in implementing the strategy.

Given the City’s across-the-board efforts to reposition itself economically, the Plan encompasses a broad range of topics including infrastructure, economic incentives, development streamlining, neighborhood revitalization, visitor amenities, retail tenant recruitment, target industry attraction and entrepreneurism. #3..
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
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30 Yuma County, Arizona: Manufacturing Development Strategy (2015). The TNDG team prepared a strategic plan for Yuma County for the Investing in Manufacturing Communities Partnership (IMCP) program. This work included a manufacturing-focused target industrial analysis; infrastructure assessment; substantial stakeholder outreach; and development of a comprehensive Action Plan. The planning process involved extensive coordination with the County, four cities (three in Arizona and one in Mexico), two universities, a community college, the county-level Workforce Investment Board, and various private organizations involved in county-level economic development (Economic Development Corporation, Manufacturers Association, and Chamber of Commerce).

Garland, Texas: Target Industry Strategy (2014). TNDG participated in the preparation of this strategic plan (led by the University of North Texas), which included a target industry analysis, competitive assessment of Garland with respect to other Dallas-area communities, assessment of the current manufacturing base in the city and the challenges faced by employers and real estate developers, and community development issues. Although the Plan focused on strategies for target industries, TNDG integrated these with relevant community and workforce-development strategies.

Escondido, California: Economic Development Master Plan (2013, updated 2018). TNDG completed a Market Opportunities Analysis and Economic Development Master Plan for the City of Escondido. The Plan was completed in tandem with a regional Comprehensive Economic Development Strategy (CEDS) for the North San Diego County region. TNDG’s work included an in-depth demographic analysis, an assessment of economic/ market opportunities, a target industry/cluster analysis, as well as a focus on revitalization of key commercial areas in the City.

Osceola County (Greater Orlando), Florida: Economic Diversification Strategy (2012). Osceola County is adjacent to Orlando, Florida and experienced significant disinvestment in the early 2000’s due to older visitor amenities (hotels, motels, amusement facilities, etc.) not keeping pace with competitive facilities in Orlando. TNDG’s strategy focused on identifying potential industries (in addition to tourism) that can provide the basis for diversifying and revitalizing the local economy.

Yuma County, Arizona: Workforce and Economic Development Summit (2001, repeated 2011). TNDG facilitated a Workforce and Economic Development Summit for Yuma County. The consultants’ work for the six-month Summit process involved substantial background research and analysis; facilitation of a series of Summit meetings with approximately 70 local stakeholders; and preparation of a comprehensive Action Plan. As part of the analytical work, the consultants identified key industry “clusters” suitable for diversifying Yuma’s economic base. The Summit process was originally completed in 2001; based on the success of the original effort, the client retained TNDG to repeat the process in 2010-2011.

San Francisco, California: Workforce Development Strategy for Bay Area Media Industry (2011). TNDG developed a comprehensive strategy to guide “career repositioning” services for dislocated journalists and media workers in the San Francisco Bay Area (an estimated 7,500 Bay Area media industry jobs have been lost over the past decade). TNDG’s work included an extensive online survey of existing and former Bay Area journalists (with over 700 individuals participating) and executive interviews with media executives.

In addition, TNDG completed a detailed analysis of employment trends (by both industry and occupation) for the overall Bay Area media cluster.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
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31 Los Angeles, California: Economic Development Strategy for Solar LA (2009). TNDG was retained by the Los Angeles Department of Water and Power in 2009 to generate a Strategic Action Plan to expand solarindustry activity in Los Angeles. The work was part of LADWP’s mission to implement the Solar LA plan. The objective of the Strategic Action Plan is to leverage the investment associated with Solar LA to develop a solar industry cluster in Los Angeles and maximize the creation of cleantech jobs.

Northeast Tennessee/Southwest Virginia: Target Industry Analysis (2006). The TNDG team completed an industry cluster analysis for the Tri-Cities Economic Development Alliance. The purpose of the study was to identify target industries/clusters for this 10-county region in Northeast Tennessee/Southwest Virginia.

Anaheim, California: Industry Location Analysis and Attraction Strategy (2005). TNDG developed a comprehensive economic development program for the City of Anaheim. TNDG’s work focused on assessing Anaheim’s strengths as they relate to industrial attraction and identifying specific industry clusters which the City should emphasize in its marketing efforts. TNDG’s recommendations included a special focus on multi-media and high technology firms.

Guam: Feasibility Study and Strategic Plan for Regional Distribution Center (2004). TNDG was part of multi-disciplinary team that completed a feasibility study and strategic plan for the development of a regional distribution center in Guam. The center was planned to build upon Guam’s existing airport and seaport infrastructure to position Guam as a distribution hub serving various Asian countries and the continental United States.

Ventura, California: Business Plan for “Eco Industry” Industrial Park (2003). TNDG completed a feasibility study and business plan for the development of an eco-industrial park (EIP) in the City of San Buenaventura. The intent of the program is to attract “eco industrial” users to major Brownfield sites currently occupied with abandoned oil production facilities. TNDG’s work included a detailed market analysis of the eco industry cluster; review of “best practices” for EIP development based on a national survey of existing parks; identification of state and federal funding sources applicable to the project; and a detailed business plan for implementation.

The National and Regional Directory of Targeted Growth Industries (2002). TNDG published The National and Regional Directory of Targeted Growth Industries, an economic development resource publication.

This research involved review and summarization of several hundred economic development strategic plans and industry trends analyses from throughout the U.S.

Fresno, California: Federal Empowerment Zone (EZ) Application (2001). The TNDG team prepared a successful application resulting in Fresno’s designation as one of only seven urban Empowerment Zones under Round III of the EZ program. Fresno’s submission was ranked number one in the country during this application round. TNDG was responsible for the overall management of several hundred stakeholders involved in various aspects of the application process.

Greensboro (Guilford County), North Carolina: Industry Attraction Strategy (2001). TNDG prepared an industry “cluster” analysis and attraction strategy for the Greensboro Economic Development Partnership.

The focus of the strategy is to expand the community’s base of high-technology sectors to offset the ongoing declines of Greensboro’s traditional mainstay industries (tobacco, apparel and furniture manufacturing). The analysis involved defining Guilford County’s potential niche markets within a 13- county reference area, and also included a review of statewide potentials vis-à-vis the overall Mid-Atlantic #3..
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32 region. Given Guilford’s proximity to the Raleigh-Durham area, significant attention was devoted to identifying potential linkages to high-tech activities at the Research Triangle Park.

Burbank, California: Economic Diversification Strategy (2000). The Team developed a comprehensive Action Plan to guide the City of Burbank’s economic development programming over the next five to ten years. As background to the strategic recommendations, TNDG completed an industry “cluster” analysis to identify new sectors into which the City’s economy can diversify, and a detailed “competitive assessment” identifying Burbank’s competitive position within the state.

Kern County, California: Economic Development Strategic Plan (2000). TNDG was retained by the County of Kern to develop a strategic plan to create the approximately 20,000 new jobs needed for the County to fulfill its obligations under the CalWORKS (welfare-to-work) program. The consultants’ work included a comprehensive assessment of the County’s workforce development programs, as well as a detailed industry “cluster” analysis to identify the sectors with the greatest potential for employment growth meeting the needs of the county’s workforce. The target industry analysis included an in-depth assessment of the county’s and the state’s competitiveness within a five-state region. The Strategy was developed over approximately a one-year time frame and involved a substantial public outreach effort.

Real Estate Market Studies Completed for Municipal Planning Processes:

Azusa, California: Retail, Hotel, Office and Residential Market Analysis for Gold Line Station Areas (2015). TNDG completed market demand forecasts and financial feasibility analyses for transit-oriented development near the two planned Gold Line stations in Azusa. TNDG’s work guided land use, zoning and development density policies and was also the basis for a market-oriented implementation strategy for the planning areas.

Downtown Core and Corridors Specific Plan, Fullerton, California (2014). TNDG served as the project economist for the Fullerton Downtown Core and Corridors Specific Plan process. The Plan area covers a large portion of the City and includes 15 distinct subareas. TNDG’s work included a market/financial analyses to identify future development opportunities and an implementation strategy for the Plan.

Ontario, California: Analysis of Market Absorption Potentials and Related Socioeconomic Impacts of Meredith International Centre Specific Plan (2014). TNDG was retained by the City of Ontario to evaluate realistic market potentials and related fiscal impacts for the Meredith International Centre - a major mixed-use project near the Ontario International Airport.

Market Analysis and Financial Pro Forma for Downtown Specific Plan, Huntington Beach, California (2010). As part of a Specific Plan process, TNDG completed a comprehensive market absorption study for Downtown Huntington Beach. Consistent with the City’s development vision for the area, the study focused on the potentials to attract the following land uses: high-density/mixed-use residential, retail, higher-end restaurants, entertainment, hotel/B&B development, and office.

Economic/Financial Analyses for Proposed Development Projects, Santa Monica, California (2007-2015).

On behalf of the City of Santa Monica, TNDG has completed economic and financial analyses (or peer reviewed applicant-submitted studies) for various projects requiring development agreements with the City. These studies typically include the following components: value enhancement analyses (to quantify the incremental property value associated with requested development entitlements); pro forma financial #3..
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33 analyses, fiscal impact analyses and focused market research to develop credible assumptions/inputs for the other studies. The primary purpose of the financial pro formas is to provide a basis for the negotiation of community benefits (including affordable housing) to be provided by the developers.

San Clemente, California: Citywide Commercial and Industrial Market Analysis (1999). TNDG completed a Citywide analysis of commercial and industrial development potentials for the City of San Clemente. The market study addressed retail, hospitality, office, business park and industrial land uses. The study was an update of a comprehensive real estate market evaluation completed by TNDG as part of a General Plan update process.
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
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34 E. PROFESSIONAL REFERENCES
The table below lists client references for all TNDG assignments related to economic development strategic planning over the past three years (2020-2023).

Client Project(s) / Dates Contact
City of Bakersfield, CA Economic Development Strategic
Plan (2020-2021)
General Plan Economic Studies
(2022-2023)
Christian Clegg, City Manager
661-326-3751
[email protected]
City of Antioch, CA Economic Development Strategic
Plan (2020-2022)
Kwame Reed, E.D. Director
(925) 779-7014
[email protected]
Cahuilla Economic
Development Corporation
(Anza, CA)
Economic Development Master
Plan / Site Plan (2020-2021)
Angela Medrano, Project Manager
(760) 419-7293 [email protected]
City of Vista, CA Economic Development Strategic
Plan (2020-2021)
Kevin Ham, E.D. Director (retired)
(760) 809-6782
[email protected]
County of Kern, CA Comprehensive Economic
Development Strategy (2021)
Oil & Gas Economic Impact Study
(2020)
Carbon Management Industry
Economic Impact Study (2023)
Lorelei Oviatt, Director,
Kern County Planning and Natural
Resources
(661) 862-8866
[email protected]
City of Simi Valley, CA Economic Development Strategic
Plan (2022-2023)
Kelly Tinker, Management Analyst –
Economic Development
City of Simi Valley
(805) 583-6732
[email protected]
City of Menifee, CA Annual Performance Reports for
CEDS (2020, 2021, 2022, 2023)
Gina Gonzalez, E.D. Director
(951) 723-3711
[email protected]
Inland Valley Development
Agency (San Bernardino,
CA)
Annual Performance Reports for
CEDS (2020, 2021, 2022, 2023)
Myriam Beltran, Manager of Planning
and Programs
(909) 382-4100 ext. 153
[email protected]
City of Santa Fe Springs, CA Economic Development Strategic Plan and General Plan Element
(2021)
Jack Wong, Project Manager
(310) 347-6310
[email protected]
City of El Cajon, CA Economic Development Strategic
Plan (2021-2022)
Economic Impact Analysis for
Living Wage Policy (2022)
Tony Shute, Director of Community
Development
619-441-1742
[email protected]
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
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35 Client Project(s) / Dates Contact
City of San Ramon, CA General Plan Economic Studies
(2021-2023)
Cindy Yee, Senior Planner
(925) 973.2562
[email protected]
City of Alhambra, CA Market Study and Development
Strategy for Valley Boulevard
Corridor (2021-2022)
Vanessa Reynoso, Deputy Director of
Community Development
(626) 570-5034
[email protected]
City of Carson, CA Economic Development Strategic
Plan (2022-2023)
Pro Forma Analysis for Factory
Outlet Center (2023)
John Raymond, Assistant City
Manager
(310) 952-1773
[email protected]
City of Pinole, CA Economic Development Strategic
Plan (2021-2022)
Lilly Whalen, Community
Development Director
(510) 724-9832
[email protected]
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PROPOSAL FOR ECONOMIC DEVELOPMENT PLANS
The Natelson Dale Group, Inc.
36 APPENDIX A – LINKS TO SAMPLE WORK PRODUCTS
Representative samples of TNDG’s work are accessible online at the links provided below.

Although all of our work products are highly customized to reflect the unique circumstances, needs and opportunities of each client, the provided samples provide a good indication of the level of detail and overall quality of work that Modesto can expect for this project.

Project: Economic Development Strategic Plan for City of Vista, CA Report Link: https://www.cityofvista.com/Home/ShowDocument?id=23774 Project: Comprehensive Economic Development Strategy (CEDS) for City of Escondido, CA Report Link: https://rebrand.ly/EscondidoCEDS
Project: Economic Development Strategic Plan for County of Ventura, CA Report Link: http://vcevsp.org/strategic-plan/strategic-planning-documents/ Project: Investing in Manufacturing Communities Strategic Plan for Yuma County, AZ Report Link: http://www.yumacountyaz.gov/home/showdocument?id=23631 Project: Economic Development Strategic Plan for City of Stockton, CA Report Link: http://www.stocktongov.com/files/EDStrategicPlan.pdf #3..
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