Modesto City Council
December 12, 2023

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.

COMMITTEE RECOMMENDATION
This item was presented to the Economic Development Committee on December 4, 2023 and was recommended to forward 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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City Council, December 12, 2023
City of Modesto Grant of Easement Rights to Sacramento and San Joaquin Drainage District and Land Grant to Reclamation District 2091

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a Grant of Easement Rights to the Sacramento and San Joaquin Drainage District and authorizing the City Manager to execute the necessary documents.

Resolution approving a Land Grant to Reclamation District 2091 and authorizing the City Manager to execute the necessary documents.

Approved by:

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

1. Resolution Easement Rights

2. Resolution Land Grant

3. Easement Deed

4. Grant Deed

5. Appraisal Report
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XX

RESOLUTION APPROVING A GRANT OF EASEMENT RIGHTS TO THE

SACRAMENTO AND SAN JOAQUIN DRAINAGE DISTRICT AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY

DOCUMENTS
WHEREAS, 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; and
WHEREAS, 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; and WHEREAS, 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; and WHEREAS, the City determined it was in the best interest to protect its assets from future flood risk and grant approximately 19.63 acres from the adjacent City of Modesto property to RD 2091. 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.
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2 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a grant of easement rights to the Sacramento and San Joaquin Drainage District.

BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the documents necessary to grant easement rights to the Sacramento and San Joaquin Drainage District in a form approved by the City Attorney.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of December 2023, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ______________________________________
JOSE M. SANCHEZ, City Attorney
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XX

RESOLUTION APPROVING A LAND GRANT TO RECLAMATION DISTRICT 2091 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE

NECESSARY DOCUMENTS
WHEREAS, 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; and
WHEREAS, 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; and WHEREAS, 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; and WHEREAS, 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; and
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2 WHEREAS, 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 right-of-way easement; and
WHEREAS, the City determined it was in the best interest to protect its assets from future flood risk and grant approximately 19.63 acres from the adjacent City of Modesto property to RD 2091. 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; and
WHEREAS, 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.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a land grant to Reclamation District 2091.

BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the documents necessary to grant the land to Reclamation District 2091 in a form approved by the City Attorney.
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3 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of December 2023, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ______________________________________
JOSE M. SANCHEZ, City Attorney
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RECORDING REQUESTED BY And When
Recorded Mail Document
and Tax Statement To:

Reclamation District 2091
Attn: Board Secretary
2930 Geer Road
PMB 144-B
Turlock, CA 95382
APN: 022-001-005, 022-004-001 & 058-001-001 (Portions) SPACE ABOVE THIS LINE FOR RECORDER’S USE

GRANT DEED
The undersigned Grantee hereby declares this instrument to be EXEMPT from Recording Fees (Gov't CodeSections 6103 and 27383) and Documentary Transfer tax (Rev & Tax Code sec 11922). Government Agency Acquiring Title FOR VALUABLE CONSIDERATION, receipt is hereby acknowledged CITY OF MODESTO, A MUNICIPAL CORPORATION (Grantor)
hereby GRANT(S) to the RECLAMATION DISTRICT 2091, A SPECIAL DISTRICT OF THE STATE OF CALIRORNIA, (Grantee) the following described real property in the City of Modesto, County of Stanislaus, State of California:

SEE EXHIBIT "A" and EXHIBIT “B” ATTACHED HERETO AND MADE A PART HEREOF

CITY OF MODESTO, A MUNICIPAL CORPORTION
By:

Title: _____________________________
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On this _____ day of _______________, 20__, before me, ____________________________, a Notary Public in and for the State of California, personally appeared _______________________________________________ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS MY HAND AND OFFICIAL SEAL the day and year first above written. ____________________________________

NOTARY PUBLIC
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APPRAISAL REPORT
ReclamaƟon District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
APNs: 022-001-005, 022-004-001 & 058-001-001
Date of Value: March 16, 2022
Date of Report: March 18, 2022
BRI 21-236
2825 Watt Avenue, Suite 200 Sacramento, California 95821 | www.benderrosenthal.com | 916.978.4900 #25..
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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 Assessor’s 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 analyses that were used in the appraisal process to develop the appraiser’s opinion of value. The depth 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. #25..
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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
Assessor’s Parcel Maps
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 Appraisers’ Certifications
Appraisers’ Qualifications
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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
Assessor’s Parcel Numbers 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 the Planning Department, Assessor’s Office, and Tax Collector’s Office.  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 subject’s or competing market areas.  Interview comparable property owners and/or brokers. #25..
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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, consistent with the “unit rule” or the “undivided fee rule”. Improvements not impacted by the project 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, if found to be false, could alter the appraiser’s opinions or conclusions.

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. “As Is.” 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 without hypothetical conditions, assumptions, or qualifications. The “as is” condition is usually the state 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. #25..
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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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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 city’s population; or the reclassification of nearby non-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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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 Employment Development Department, trade transportation, utilities is the County’s leading employer, followed by educational and health services, and government. The following table shows the leading industries and their respective percentage of Modesto MSA’s total employment.

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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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% of the region’s total 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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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, America’s Labor Market Information System, 2022 1st 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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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. #25..
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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
California’s demand for housing has only increased over the previous ten years. This can be seen by the 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 been turning into a “bedroom community” for individuals working in the eastern bay area, 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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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 that it’s a large parcel. 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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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. #25..
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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 County. The January 31, 2020 planning deadline for California’s 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.

Almonds and walnuts, two of Region 3’s most prevalent commodities, 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 3’s primary commodities.

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 #25..
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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 #25..
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City of Modesto Property
Stanislaus County, California
BRI 21-236 20
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. #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 21

IDENTIFICATION OF LARGER PARCEL / PROPERTY DESCRIPTION

DETERMINATION OF LARGER PARCEL
The process of determining the “Larger Parcel” involves the analysis of an owner’s holdings regarding 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 Project, meets all the tests of the larger parcel, defined as the subject’s 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’s 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 arm’s length 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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ASSESSOR’S PARCEL MAPS
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ASSESSOR’S PARCEL MAPS (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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City of Modesto Property
Stanislaus County, California
BRI 21-236 27
Property Tax Data and Projected Taxes The City of Modesto is exempt from property taxes, which includes the subject property. County Assessor’s records 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. #25..
- 930 -
Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 28

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 County Assessor’s Parcel Map, plat, and legals provided The proposed acquisitions are based upon maps provided by the Authority, assessor’s records, and supported by field inspection. Maps detailing the proposed encumbered easement can be seen on the following page.
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 29

ACQUSITION EXHIBIT
#25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 30

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. The property’s 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.
#25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 31

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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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 32

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. #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 33

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. #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 34

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. #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 35

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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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
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 subject’s limited permanent planting capacity. 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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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
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. #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 38
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. #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 39
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 #25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 40
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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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236 41

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 and the highest and best use of the remainder parcel remains the same as in the “before” condition, 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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City of Modesto Property
Stanislaus County, California
BRI 21-236 44

APPENDIX
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Stanislaus County, California
BRI 21-236
APPRAISERS’ CERTIFICATIONS
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236
APPRAISER’S 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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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
APPRAISER’S 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.
#25..
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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
#25..
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Reclamation District 2091 Levee Repair
City of Modesto Property
Stanislaus County, California
BRI 21-236
APPRAISERS’ QUALIFICATIONS
#25..
- 953 -
professional
qualifications
david houghton, MAI
Manager of Agency Appraisal
David Houghton is a Senior Appraiser with Bender Rosenthal (BRI). He has been involved in real estate appraising since 2005 and is a Certified General Appraiser in the State of California. He has professional experience appraising a wide range of property types, including industrial, oAce, medical oAce, retail, multifamily, condemnation, right of way, residential subdivisions, and various agricultural/rural residential property types.

Between 2007 and 2014 he worked exclusively on low income housing appraisal assignments. While focused on that specialty, Dave gained experience appraising a@ordable housing and conducting market studies for Low Income Housing Tax Credit (LIHTC) developers. In 2014, David began working with BRI and has since shifted his focus and expertise into right of way appraisal assignments.

Geographically, Dave has appraised properties and completed market studies throughout Southern and Northern California, Washington, Hawaii, and Nevada, with the bulk of the experience in Southern and Northern California.

Y E AR S O F E XP ER IE N C E
1 Years (with BRI since 2014)

EDU CATI O N
BS, Science of Business
Management
University of Phoenix
Phoenix, Arizona

P ROF ES S ION A L R EG I ST RATI ON S
California Certified General
Real Estate Appraiser
AG 39402
P r of e s s i on a l A f f i l i at i o n s
Sacramento-Sierra Chapter of
Appraisal Institute
Des i g n at i o n s
MAI, Appraisal Institute
representative valuations include
O#ce – Existing and proposed oAce properties in Sacramento Region and Central Valley.

Retail – Existing and proposed retail properties in Northern and Southern California.

Industrial – Existing and proposed industrial properties in Sacramento Region and Central Valley.

Multi-family – Existing and proposed multi-family properties in Northern and Southern California, the state of Washington, New Mexico, Nevada and Hawaii.

Mixed Use – Existing and proposed mixed use properties in Northern and Southern California.

Subdivision – Proposed residential subdivisions in Sacramento Region and Central Valley.

Eminent Domain – Improved and unimproved properties involving full and partial takings for municipalities, quasi-public companies, and property owners.

Agricultural – Vineyards, dairies, orchards, field/row crop land, and rural residential properties.

Land – Various types of land appraised such as commercial land, retail pad sites, residential land, transitional land, and agricultural/rural residential land.

Multi-family Market Studies – Existing and proposed multi-family LIHTC/HUD/USDA properties in Northern and Southern California, the state of Washington, New Mexico, Nevada and Hawaii.

Headquarters: 2825 WaƩAvenue, Suite 200|Sacramento, CA 95821|916.978.4900 #25..
- 954 -
professional
qualifications
Ross campbell
Appraiser
Ross Campbell has been involved in real estate appraising and consulting since 2011. His professional experience in real estate appraisal encompasses a broad range of property types including industrial, oAce, retail, single family, multi-family, residential subdivisions, agricultural, transitional, and various types of land. Ross also has right of way experience involving both partial and full acquisitions, complex damage/benefit analysis, crop loss scenarios, transportation and utility projects. Over the course of his career he has worked on several specialty property types/projects of note which encompass cell tower sites, water related use properties (both inland and oceanfront), mitigation work, contamination issues, corridor valuations, title claims, conservation easements, and shelter valuation.

Ross received his Bachelor’s degrees in Economics and Sociology:

Organizational Studies, respectively, from The University of California at Davis. He continues his education with courses from the Appraisal Institute and the International Right of Way Association in pursuit of a professional designation.

Y E A R S OF E X PE RI EN C E
Years (with BRI since 2011)

E DU C ATI O N
BA, Economics
University of California
Davis, California
BA, Sociology: Organizational
Studies
University of California
Davis, California

P R OF ES S I ON A L R EG I S T RAT I ON S
California Certified General
Real Estate Appraiser
AG 3003418
P r of es s i on a l A ff i l i at i o n s
Sacramento-Sierra Chapter of
Appraisal Institute
representative valuations include
Industrial – Existing and proposed distribution, storage, and research and development properties.

O#ce – Existing and proposed general-oAce, medical-oAce, and dental-oAce developments.

Retail – Existing and proposed shopping centers, mixed-use buildings, and restaurants.

Single-Family Residential – Existing and proposed residential subdivisions.

Multifamily Residential – Existing and proposed apartment complexes and condominiums.

Agricultural – Field and row crops, conservation easements, and rural-residential properties.

Land – Retail, oAce, residential, industrial, transitional, and agricultural land.

Special Use – Cell tower sites, water related sites, transportation and utility corridors.

Eminent Domain – Improved and unimproved properties involving full and partial acquisitions.

Headquarters: 2825 WaƩAvenue, Suite 200|Sacramento, CA 95821|916.978.4900 #25..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

December 12, 2023
Date: November 11, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Abandonment of a 0.548-acre portion of E. Glenn Avenue, generally located east of Reliance Street and west of the Union-Pacific Railroad CONTACT: Michael Hren, Principal Planner
[email protected], 209-577-5273
DESCRIPTION:

Hearing to consider approving the abandonment of a 0.548-acre portion of E. Glenn Avenue, located east of Reliance Street and west of the Union-Pacific Railroad. (Funding Source:

Developer Application Fees)
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 by developing and implementing a citywide traffic management plan.

BACKGROUND:

East Glenn Avenue is a Minor Collector Street, which extends from the Yuma Avenue intersection at the west to Reliance Street at the east, when East Glenn Avenue was originally planned, it was intended to extend further east past Reliance. However, this road segment has never been improved and the City Engineer has indicated that the improvement of this segment is not needed.

As a part of Development Plan Review 2023-018, the Engineering Division added Condition 13, which states: “Glenn Street alignment to the east as shown on the final map, shall be vacated by a special instrument. An access and utility easement for the existing utility mains within the alignment shall be reserved and recorded prior to the issuance of a building permit.” In order to proceed with that project, the development of two dry-storage warehouse buildings and associated truck docks and parking, this abandonment must first take place.

DISCUSSION:

The developer, G3 enterprises, submitted an application for the abandonment of East Glenn, and included in the submittal a title report which vests fee title of the land for the proposed #26..
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City Council, December 12, 2023
Abandonment of a 0.548-acre portion of E. Glenn Avenue, generally located east of Reliance Street and west of the Union-Pacific Railroad

abandonment with G3 Enterprises, Inc. Staff reviewed the application and the abandonment does not affect the existing alignment of East Glenn Avenue or Reliance Street. The area in question has no street improvements, and per the City Engineer, will not be improved in the future. All existing underground and aboveground utilities, irrigation, and electrical lines shall be protected, relocated, or removed as required by the Utility Companies and City Engineer or designee. Easements for utilities, irrigation, and electrical lines to remain shall be reserved as required. Easements and improvements shall include but not be limited to the following:

1. The developer shall dedicate to the City of Modesto a minimum 30-foot Public Utility Easement along Glenn Avenue from Reliance Street to Union Pacific Railroad, to contain the 24-inch (east/west) sewer trunk main, and the 12-inch (east/west) water main, unless otherwise directed by the Utilities Department to remove or realign these utility mains as part of this abandonment.

2. Per comments received from the Turlock Irrigation District, a portion of the proposed 30’ public utility easement is anticipated to be needed for provision of electric service to the planned warehouses to the north.

Staff recommends to abandon this area that extends East Glenn Avenue from Reliance Street further east. There would be no benefit to improving the property proposed for abandonment, as the roadway would not connect to any other road, since it would dead end at the railroad tracks.

Per comments from the City’s Engineering Services Department, the developer shall dedicate to the City of Modesto a minimum 30-foot Public Utility Easement along Glenn Avenue from Reliance Street to Union Pacific Railroad, to contain the 24-inch (east/west) sewer trunk main, and the 12-inch (east/west) water main, unless otherwise directed by the Utilities Department to remove or realign these utility mains as part of this abandonment. While Modesto Irrigation District (MID) and Turlock Irrigation District (TID) have no facilities located in this area presently, TID indicated that they anticipate occupying a portion of the proposed 30’ Public Utility Easement to provide electric service to the planned warehouses on the property to the north.

Section 8313 of the Streets and Highways Code1 provides that the Planning Commission shall review the proposed vacation of City owned easements and report on its conformance with the General Plan. Furthermore, Section 65402 of the California Government Code2 requires the Planning agency to make a finding of General Plan conformance whenever a governmental entity proposes to acquire or dispose of property. At its regular meeting on November 6, 2023, the Planning Commission found during a public hearing that the proposed abandonment is in conformance with the General Plan, and recommended approval of the proposed abandonment to the City Council.

The Planning Commission determined the following:

1. The segment of E. Glenn Avenue east of Reliance Street is to be abandoned, and as this portion of the roadway is not shown in the Circulation Element of the 1 2021 California Code Streets and Highways Code – SHC DIVISION 9 - CHANGE OF GRADE AND VACATION PART 3 - PUBLIC STREETS, HIGHWAYS, AND SERVICE EASEMENTS VACATION LAW CHAPTER 2 - General Provisions Section 8313 - https://law.justia.com/codes/california/2021/codeshc/division-9/part-3/chapter-2/section-8313/ 2§5.7.100: CALIFORNIA GOVERNMENT CODE SECTION 65402 REQUIREMENT - https://library.qcode.us/lib/san_leandro_ca/pub/admin_code/item/title_5-chapter_7-5_7_100 #26..
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City Council, December 12, 2023
Abandonment of a 0.548-acre portion of E. Glenn Avenue, generally located east of Reliance Street and west of the Union-Pacific Railroad

General Plan; therefore, the street abandonment is in conformance with the General Plan.

2. Environmental Assessment No. EA/C&ED 2023-18 was prepared by the City of Modesto that determined that the proposed project was already considered by a previous environmental review, Initial Study Environmental Checklist C&ED No. 2023-14, and therefore no new environmental review is required pursuant to Section 15162 of the CEQA Guidelines.

3. The abandonment will have no additional significant effect on the environment, as defined in subdivision (d) of Section 21158 of the Public Resources Code that was not identified in the Master Environmental Impact Report (EIR).

4. No new or additional mitigation measures or alternatives are required.

5. The subsequent project is within the scope of the project covered by the Master EIR.

6. All applicable policies, regulations, and mitigation measures identified in the Master EIR have been applied to the subsequent project or otherwise made conditions of approval of the subsequent project.

7. No substantial changes have occurred with respect to the circumstances under which the Master EIR was certified, and no new information, which was not known and could not have been known at the time that the Master EIR was certified as complete, has become available.

Pursuant to the provisions of Section 8320, et seq. of the Streets and Highways Code, a notice of the hearing for this matter has been published for two successive weeks in the Modesto Bee newspaper, on November 27 and December 4, 2023, and notices of the hearing for this matter have been placed on the site of the abandonment along the line of the property to be vacated for fourteen days prior to the hearing since November 27, 2023.

Staff recommends to abandon this area that extends East Glenn Avenue from Reliance Street further east. There would be no benefit to improving the property proposed for abandonment, as the roadway would not connect to any other road, since it would dead end at the railroad tracks.

FISCAL IMPACT:

This action has no impact to the General Fund.

COMMITTEE RECOMMENDATION:

This item was reviewed by the Planning Commission on November 6, 2023, and the Commission recommended forwarding the item to Council for approval.

CEQA REQUIREMENTS:

Staff has prepared an Initial Study, Environmental Assessment/C&ED No. 2023-14, which concluded that the project is within the scope of the General Plan Master EIR (SCH No. 2014042081) and that pursuant to Section 15162 of the CEQA Guidelines, no new environmental review was required. The subsequent project is within the scope of the project covered by the Master EIR. All applicable policies, regulations, and mitigation measures #26..
- 958 -
City Council, December 12, 2023
Abandonment of a 0.548-acre portion of E. Glenn Avenue, generally located east of Reliance Street and west of the Union-Pacific Railroad

identified in the Master EIR have been applied to the subsequent project or otherwise made conditions of approval of the subsequent project. No substantial changes have occurred with respect to the circumstances under which the Master EIR was certified, and no new information, which was not known and could not have been known at the time that the Master EIR was certified as complete, has become available.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the abandonment of a 0.548-acre portion of E. Glenn Avenue, located east of Reliance Street and west of the Union-Pacific Railroad.

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

1. Resolution (Abandonment)

2. Exhibit A – Legal Description and Plat Map of Abandonment

3. Exhibit B – Legal Description and Plat Map of Public Utility Easement

4. Initial Study
#26..
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1 ABD-23-001

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XX
RESOLUTION APPROVING THE ABANDONMENT OF A 0.548-ACRE
PORTION OF E. GLENN AVENUE, LOCATED EAST OF RELIANCE STREET

AND WEST OF THE UNION-PACIFIC RAILROAD
WHEREAS, a verified application by G3 enterprises requesting the abandonment of an approximately 0.548-acre segment of E. Glenn Avenue located generally between Reliance Street and the Union-Pacific Railroad, and shown by reference in the attached Exhibits, was received by the City of Modesto; and
WHEREAS, a title report was submitted with the abandonment request which vests fee title of the described land with G3 Enterprises, Inc.; and WHEREAS, the proposed abandonment has been referred to affected City departments and local utility companies, and no objection to the abandonment has been received; and
WHEREAS, the section of E. Glenn Avenue proposed for abandonment has not been improved with street improvements and, per the City Engineer, will not be improved in the future; and
WHEREAS, pursuant to Section 8313 of the Streets and Highways Code and Section 65402 of the Government Code, the Planning Commission held a public hearing on November 6, 2023, and recommended the approval of the proposed abandonment to the City Council and confirmed the abandonment’s conformity with the General Plan; and WHEREAS, the City Council certifies it has received and reviewed Environmental Assessment No. EA/C&ED 2023-18, which concluded that the project has already been considered by a previous environmental review, Initial Study Environmental #26..
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2 ABD-2023-01
Checklist C&ED No. 2023-14, and that pursuant to Section 15162 of the CEQA Guidelines, no new environmental review is required; and WHEREAS, the location of the proposed abandonment is further described and depicted in Exhibit A, attached hereto in incorporated herein; and WHEREAS, the City Council has determined that the section of E. Glenn Avenue proposed for abandonment is excess and unnecessary for present or prospective public use and the abandonment thereof is in the best interests of the City of Modesto; and WHEREAS, Pursuant to the provisions of Section 8320, et seq. of the Streets and Highways Code, a notice of the hearing for this matter has been published for two successive weeks in the Modesto Bee newspaper, on November 27 and December 4, 2023, and notices of the hearing for this matter have been placed on the site of the abandonment along the line of the property to be vacated for fourteen days prior to the hearing since November 27, 2023; and
WHEREAS, pursuant to the provisions of Section 8330 et seq., of the Streets and Highways Code, the City Council seeks to summarily vacate the described portion of E.

Glenn Avenue.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Modesto as follows:

1. The City Council hereby finds and determines that the above recitals are true and correct and have served as the basis, in part, for the findings and actions of the City set forth below.

2. The portion of E. Glenn Avenue described and depicted in Exhibit A, attached hereto and incorporated herein, is excess and unnecessary for #26..
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3 ABD-2023-01
present or prospective public use.

3. Pursuant to Chapter 4 of Part 3 of Division 9 of the California Streets and Highways Code, the portion of E. Glenn Avenue is hereby summarily vacated and abandoned. From and after the date this Resolution is recorded, the abandoned area shall no longer constitute a city facility and the land shall revert to the holder of its fee title. This abandonment is subject to the following conditions:
a. All construction documentation shall be coordinated for consistency, including but not limited to, architectural, structural, mechanical, electrical, plumbing, landscape and irrigation, grading, utility, and street improvement plans. All such plans shall be consistent with the approved entitlement plans on file with the Planning Department. b. All landscaping, fences, and walls shall be maintained in good condition and the premises shall be kept free of weeds, trash, and other debris.
c. At the time of issuance of a building permit, the developer shall pay development impact fees at the established rate. Such fees may include but are not limited to, sewer and water connection fees, community facility fees, building permit and plan check fees.
d. All existing underground and aboveground utilities, irrigation, and electrical lines shall be protected, relocated, or removed as required by the Utility Companies and City Engineer or designee. Easements for utilities, irrigation, and electrical lines to remain shall be reserved as required. Easements and improvements shall include but not be limited to the following:
i. The developer shall dedicate to the City of Modesto a minimum 30-foot Public Utility Easement (PUE) along Glenn Avenue from Reliance Street to Union Pacific Railroad, to contain the 24-inch (east/west) sewer trunk main, and the 12- inch (east/west) water main, unless otherwise directed by the Utilities Department to remove or realign these utility mains as part of this abandonment. Such PUE is further described in Exhibit B, attached hereto and incorporated herein.
ii. Per comments received from the Turlock Irrigation District, a portion of the proposed 30’ public utility easement is
#26..
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4 ABD-2023-01
anticipated to be needed for provision of electric service to the planned warehouses to the north.

4. The project applicant shall indemnify, defend, and hold harmless the City of Modesto, its agents, officers, and employees from any and all claims, actions, or proceedings against the City of Modesto, its agents, officers, and employees to attack, set aside, void, or annul, any approval by the City of Modesto and its advisory agency, appeal board, or a legislative body concerning the street abandonment (File No. ABD-23-001), and any related files. The City of Modesto shall promptly notify the applicant of any claim, action, or proceeding and shall cooperate fully in the defense. If the City fails to do so, the applicant shall not thereafter be responsible to defend, indemnify, or hold City harmless.

5. The City Clerk is hereby directed to record a certified copy of this Resolution in the office of the Stanislaus County Recorder pursuant to Streets and Highways Code section 8335.
#26..
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5 ABD-23-001
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of December, 2023, by Councilmember _____, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

ATTEST: _____________________________

DIANE NAYARES-PEREZ, CMC
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
Exhibits:

A. Legal Description of Abandonment and Plat Map
B. Legal Description of Public Utility Easement and Plat Map #26..
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©COPYRIGHT 2023 DF ENGINEERING, INC.

DATE Jun.,2023
SCOTT THOMAS DELAMARE LS 8078
SIGNED:

OF
JOB
AUTHOR
SCALE
CK. BY
PAGE
DATE
2302
DF ENGINEERING , INC. CIVIL ENGINEERING AND SURVEYING
3421 TULLY ROAD · SUITE J · MODESTO, CA 95350 TELEPHONE (209) 529-7450 · EMAIL [email protected] R:\ACTIVE PROJ\2023\2302\Dwg\Abandonment\2302Abndnmnt.dwg, Desc, Jun 16, 2023, 3:22pm, Scott PRELIMINARY CHECK PRINT June 16, 2023 CHECK PRINT NOT FOR RECORDING CHECK PRINT NOT FOR RECORDING

CHECK PRINT NOT FOR RECORDING
Printed June 16, 2023 - Ready for 1st Submittal
June 16, 2023 N/A
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EXHIBIT A

LEGAL DESCRIPTION O F

GLENN AVENUE ABANDONMENT
All of the real property as described in the Grant Deed recorded as DOC-2023-0023606, Stanislaus County Records, lying in Section 9, Township 4 South, Range 9 East, Mount Diablo Meridian, City of Modesto, County of Stanislaus, State of California, more particularly described as follows:

That certain 40.00 foot wide strip of Glenn Avenue along the South side of Parcel 2 of the Parcel Map filed October 19, 1989 in Book 42 of Parcel Map,

property has been dedicated, but not accepted, by the City of Modesto, subject, however, to the future acceptance by the City of Modesto, said strip more particularly described as follows:

BEGINNING at the Southeast corner of said Parcel 2 being on the West line of Tidewater Southern Railroad as shown on said Parcel Map; thence along said West line, South 0°19' 10" East, 40.00 feet to the East-West quarter Section line of said Section 9 as shown on said Parcel Map; thence along said East-West quarter Section line, North 89°56' 28" West, 595.96 feet to the Southerly extension of the East line of Reliance Street as shown on said Parcel Map; thence along said Southerly extension, North 0°00' 50" East, 54.99 feet to the North return of the Northeast corner of said Reliance Street and said Glenn Avenue as shown on said Parcel Map, being a point of cusp; thence Southeasterly, 23.55 feet, along the tangent curve of said point of cusp, concave to the Northeast, having a radius of

15.00 feet and a central angle of 89°57' 18", to the North line of said Glenn Avenue as shown on said Parcel Map; thence along said North line, South 89°56' 28" East, 580.74 feet to the point of beginning.

EXCEPTING THEREFROM all minerals and all mineral rights of every kind and character now known to exist or hereinafter discovered, as reserved by Union Pacific Railroad Company, a Utah corporation in the Deed recorded December 22, 1989 as Instrument No. 13126, Official Records.

Containing: 23,882 square feet / 0.548 acres, more or less.

Assessor's Parcel Number: 086-012-085
A plat entitled “EXHIBIT B” and attached hereto
is hereby made a part of this Legal Description.

END OF DESCRIPTION
#26..
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S S
23,882 SF

0.548 AC

GLENN AVENUE ABANDONMENT

PROPOSED
EAS T
GLEN N

AVENU E RELIANC

E STREE
T
S0°19'10"E 40.00'
N89°56'28"W 595.96'
N0°00'50"E 54.99'
D=89°57'18" R=15.00' L=23.55' }
S89°56'28"E 580.74'
UNIO N

PACIFI C RAILROA D
PARCEL 2
42-PM-42
PARCEL 2 58-PM-02 LOT 10 35-M-46
60' 20'
©COPYRIGHT 2023 DF ENGINEERING, INC.

DATE Jun.,2023
SCOTT THOMAS DELAMARE LS 8078
SIGNED:

OF
JOB
AUTHOR
SCALE
CK. BY
PAGE
DATE
2302
DF ENGINEERING , INC. CIVIL ENGINEERING AND SURVEYING
3421 TULLY ROAD · SUITE J · MODESTO, CA 95350 TELEPHONE (209) 529-7450 · EMAIL [email protected] R:\ACTIVE PROJ\2023\2302\Dwg\Abandonment\2302Abndnmnt.dwg, Plat, Jun 16, 2023, 3:22pm, Scott PRELIMINARY CHECK PRINT June 16, 2023 CHECK PRINT NOT FOR RECORDING CHECK PRINT NOT FOR RECORDING

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June 16, 2023 1"= 100'
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EXHIBIT B

PLAT TO ACCOMPANY LEGAL DESCRIPTION O F
LYING IN SECTION 9, T.4 S., R.9 E., M.D.M.

CITY OF MODESTO, COUNTY OF STANISLAUS, STATE OF CALIFORNIA

GLENN AVENUE ABANDONMENT
N.T.S.

VICINITY MAP
SITE
0 GRAPHIC SCALE
SCALE 1"= 100'
50 100 200
LEGEND

PROPOSED ABANDONMENT

RIGHT-OF-WAY

PARCEL LINE

THE CROSSHATCHED AREA

REPRESENTS PROPOSED

ABANDONMENT
10' PUE
15' IRR. EASEMENT
6' PLANTING EASEMENT

SANITARY SEWER W/MH

WATER W/VALVE
S

FIRE HYDRANT
1/4 LINE SECTION 9
#26..
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©COPYRIGHT 2023 DF ENGINEERING, INC.

DATE Jun.,2023
SCOTT THOMAS DELAMARE LS 8078
SIGNED:

OF
JOB
AUTHOR
SCALE
CK. BY
PAGE
DATE
2302
DF ENGINEERING , INC. CIVIL ENGINEERING AND SURVEYING
3421 TULLY ROAD · SUITE J · MODESTO, CA 95350 TELEPHONE (209) 529-7450 · EMAIL [email protected] CHECK PRINT NOT FOR RECORDING R:\ACTIVE PROJ\2023\2302\Dwg\Abandonment\2302Abndnmnt.dwg, Closure, Jun 16, 2023, 3:22pm, Scott CHECK PRINT NOT FOR RECORDING

CHECK PRINT NOT FOR RECORDING
Printed June 16, 2023 - Ready for 1st Submittal
June 16, 2023 N/A

NOT FOR RECORDIN G NOT FOR RECORDIN

G NOT FOR RECORDING
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PARCEL CLOSUR E

MAP CHECK FO R

GLENN AVENUE ABANDONMENT
North: 3000.00000' East: 3000.00000'
Segment #1 : Line
Course: S0°19'10"E Length: 40.00'
North: 2960.00062' East: 3000.22301'
Segment #2 : Line
Course: N89°56'28"W Length: 595.96'
North: 2960.61315' East: 2404.26333'
Segment #3 : Line
Course: N0°00'50"E Length: 54.99'
North: 3015.60315' East: 2404.27666'
Segment #4 : Curve
Length: 23.55' Radius: 15.00'
Delta: 89°57'18" Tangent: 14.99'
Chord: 21.20' Course: S44°57'49"E
Course In: S89°59'10"E Course Out: S0°03'32"W
RP North: 3015.59951' East: 2419.27666'
End North: 3000.59952' East: 2419.26124'
Segment #5 : Line
Course: S89°56'28"E Length: 580.74'
North: 3000.00264' East: 3000.00093'
Perimeter: 1295.23' Area: 23,882 SF / 0.548 AC
Error Closure: 0.00280 Course: N19°30'34"E
Error North: 0.002635 East: 0.000934
Precision 1: 462585.71
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©COPYRIGHT 2023 DF ENGINEERING, INC.

DATE Jun.,2023
SCOTT THOMAS DELAMARE LS 8078
SIGNED:

OF
JOB
AUTHOR
SCALE
CK. BY
PAGE
DATE
2302
DF ENGINEERING , INC. CIVIL ENGINEERING AND SURVEYING
3421 TULLY ROAD · SUITE J · MODESTO, CA 95350 TELEPHONE (209) 529-7450 · EMAIL [email protected] R:\ACTIVE PROJ\2023\2302\Dwg\Easement PUE\2302_PUE.dwg, Desc, Jun 26, 2023, 9:29am, Scott PRELIMINARY CHECK PRINT June 26, 2023 CHECK PRINT NOT FOR RECORDING CHECK PRINT NOT FOR RECORDING

CHECK PRINT NOT FOR RECORDING
Printed June 26, 2023 - Ready for 1st Submittal
June 26, 2023 N/A
NIP
STD
1 1

EXHIBIT A

LEGAL DESCRIPTION O F

PUBLIC UTILITY EASEMEN T
All of the real property as described in the Grant Deed recorded as DOC-2023-0023606, Stanislaus County Records, lying in Section 9, Township 4 South, Range 9 East, Mount Diablo Meridian, City of Modesto, County of Stanislaus, State of California, more particularly described as follows:

That certain 40.00 foot wide strip of Glenn Avenue along the South side of Parcel 2 of the Parcel Map filed October 19, 1989 in Book 42 of Parcel Map,

property has been dedicated, but not accepted, by the City of Modesto, subject, however, to the future acceptance by the City of Modesto, said strip more particularly described as follows:

BEGINNING at the Southeast corner of said Parcel 2 being on the West line of Tidewater Southern Railroad as shown on said Parcel Map; thence along said West line, South 0°19' 10" East, 40.00 feet to the East-West quarter Section line of said Section 9 as shown on said Parcel Map; thence along said East-West quarter Section line, North 89°56' 28" West, 595.96 feet to the Southerly extension of the East line of Reliance Street as shown on said Parcel Map; thence along said Southerly extension, North 0°00' 50" East, 54.99 feet to the North return of the Northeast corner of said Reliance Street and said Glenn Avenue as shown on said Parcel Map, being a point of cusp; thence Southeasterly, 23.55 feet, along the tangent curve of said point of cusp, concave to the Northeast, having a radius of

15.00 feet and a central angle of 89°57' 18", to the North line of said Glenn Avenue as shown on said Parcel Map; thence along said North line, South 89°56' 28" East, 580.74 feet to the point of beginning.

EXCEPTING THEREFROM all minerals and all mineral rights of every kind and character now known to exist or hereinafter discovered, as reserved by Union Pacific Railroad Company, a Utah corporation in the Deed recorded December 22, 1989 as Instrument No. 13126, Official Records.

Containing: 23,882 square feet / 0.548 acres, more or less.

Assessor's Parcel Number: 086-012-085
A plat entitled “EXHIBIT B” and attached hereto
is hereby made a part of this Legal Description.

END OF DESCRIPTION
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23,882 SF

0.548 AC

PROPOSED PUBLIC UTLITY EASEMENT
EAS T
GLEN N

AVENU E RELIANC

E STREE
T
S0°19'10"E 40.00'
N89°56'28"W 595.96'
N0°00'50"E 54.99'
D=89°57'18" R=15.00' L=23.55' }
S89°56'28"E 580.74'
UNIO N

PACIFI C RAILROA D
PARCEL 2
42-PM-42
PARCEL 2 58-PM-02 LOT 10 35-M-46
60' 20'
©COPYRIGHT 2023 DF ENGINEERING, INC.

DATE Jun.,2023
SCOTT THOMAS DELAMARE LS 8078
SIGNED:

OF
JOB
AUTHOR
SCALE
CK. BY
PAGE
DATE
2302
DF ENGINEERING , INC. CIVIL ENGINEERING AND SURVEYING
3421 TULLY ROAD · SUITE J · MODESTO, CA 95350 TELEPHONE (209) 529-7450 · EMAIL [email protected] R:\ACTIVE PROJ\2023\2302\Dwg\Easement PUE\2302_PUE.dwg, Plat, Jun 26, 2023, 9:29am, Scott PRELIMINARY CHECK PRINT June 26, 2023 CHECK PRINT NOT FOR RECORDING CHECK PRINT NOT FOR RECORDING

CHECK PRINT NOT FOR RECORDING
Printed June 26, 2023 - Ready for 1st Submittal
June 26, 2023 1"= 100'
NIP
STD
1 1

EXHIBIT B

PLAT TO ACCOMPANY LEGAL DESCRIPTION O F
LYING IN SECTION 9, T.4 S., R.9 E., M.D.M.

CITY OF MODESTO, COUNTY OF STANISLAUS, STATE OF CALIFORNIA

PUBLIC UTILITY EASEMEN T
N.T.S.

VICINITY MAP
SITE
0 GRAPHIC SCALE
SCALE 1"= 100'
50 100 200
LEGEND

PROPOSED PUBLIC

UTILITY EASEMENT

RIGHT-OF-WAY

PARCEL LINE

THE CROSSHATCHED AREA

REPRESENTS THE PROPOSED

EASEMENT DESCRIBED
EXISTING 10' PUBLIC

UTILITY EASEMENT (PUE)
EXISTING 15' IRRIGATION

EASEMENT (IE)
EXISTING 6' PLANTING

EASEMENT (PE)
1/4 LINE SECTION 9
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©COPYRIGHT 2023 DF ENGINEERING, INC.

DATE Jun.,2023
SCOTT THOMAS DELAMARE LS 8078
SIGNED:

OF
JOB
AUTHOR
SCALE
CK. BY
PAGE
DATE
2302
DF ENGINEERING , INC. CIVIL ENGINEERING AND SURVEYING
3421 TULLY ROAD · SUITE J · MODESTO, CA 95350 TELEPHONE (209) 529-7450 · EMAIL [email protected] CHECK PRINT NOT FOR RECORDING R:\ACTIVE PROJ\2023\2302\Dwg\Easement PUE\2302_PUE.dwg, Closure, Jun 26, 2023, 9:29am, Scott CHECK PRINT NOT FOR RECORDING

CHECK PRINT NOT FOR RECORDING
Printed June 26, 2023 - Ready for 1st Submittal
June 26, 2023 N/A

NOT FOR RECORDIN G NOT FOR RECORDIN

G NOT FOR RECORDING
NIP
STD
1 1

PARCEL CLOSUR E

MAP CHECK FO R

PUBLIC UTILITY EASEMEN T
North: 3000.00000' East: 3000.00000'
Segment #1 : Line
Course: S0°19'10"E Length: 40.00'
North: 2960.00062' East: 3000.22301'
Segment #2 : Line
Course: N89°56'28"W Length: 595.96'
North: 2960.61315' East: 2404.26333'
Segment #3 : Line
Course: N0°00'50"E Length: 54.99'
North: 3015.60315' East: 2404.27666'
Segment #4 : Curve
Length: 23.55' Radius: 15.00'
Delta: 89°57'18" Tangent: 14.99'
Chord: 21.20' Course: S44°57'49"E
Course In: S89°59'10"E Course Out: S0°03'32"W
RP North: 3015.59951' East: 2419.27666'
End North: 3000.59952' East: 2419.26124'
Segment #5 : Line
Course: S89°56'28"E Length: 580.74'
North: 3000.00264' East: 3000.00093'
Perimeter: 1295.23' Area: 23,882 SF / 0.548 AC
Error Closure: 0.00280 Course: N19°30'34"E
Error North: 0.002635 East: 0.000934
Precision 1: 462585.71
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The California Environmental Quality Act
(CEQA) Section 15162 Findings:

Application: ABD-23-001- Environmental Review #2023-18
Assessor Parcel Number or Location: All of the real property as described in the Grant Deed recorded as DOC-2023-0023606, Stanislaus County Records, lying in Section 9, Township 4 South, Range 9 East, Mount Diablo Meridian, City of Modesto, County of Stanislaus, State of California.

PreviousInitial Study/EIR Reference: Initial Study Environmental Checklist C&ED No. 2023-14 Original Project Date: The General Plan Master EIR (SCH# 2014042081) was certified on March 5, 2019.

Section A - Previous Studies

1. Substantial changes are proposed in the project that will require major revisions of the previous project EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects?
Comment/Finding: The proposed abandonment follows the previous Development Plan Review’s plan and implements a Condition of Approval of that document. No substantial changes are proposed in the project that will require revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.

2. Substantial changes have occurred with respect to the circumstances under which the project is undertaken that will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects?
Comment/Finding: There have been no changes in the circumstances under which the project is undertaken that would require major revisions in the previous EIR. There are no new significant environmental effects or substantial increases in the severity of previously identified environmental effects.

3. New information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete orthe Negative Declaration was adopted, has been revealed? (If "Yes" is checked, go to Section "B" below) Comment/Finding: There is no new information ofsubstantial importance that was not known and could not have been known with the reasonable diligence at the time the previous EIR was adopted.

Yes No
X
Yes No
X
Yes No
X
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Section B - New Information
A) The project will have one or more significant effects not discussed in the previous EIR or negative declaration.

B) Significant effects previously examined will be substantially more severe than shown in the previous EIR.

C) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative.

D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative.

Comment/Finding: The proposed abandonment follows through with and complies with the stated plan in the previous Development Plan Review, and no new information is present because of this application.

On the basis of this evaluation, in accordance with the requirements of Section 15162 of the CEQA Guidelines:

I. It is found that subsequent negative declaration will need to be prepared.

2. It is found that an addendum Negative Declaration will need to be prepared.

3. That a subsequent EIR will need to be prepared.

4. No further documentation is required.

Date:

October 10, 2023
Prepared By:

Michael Hren, AICP
Principal Planner
City of Modesto
Yes No
X
Yes No
X
Yes No
X
Yes No
X
X
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12/12/2023 5:00:00 PM

OFFICE OF THE CITY CLERK

NOTICE OF SPECIAL MEETING
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on
TUESDAY, DECEMBER 12, 2023 AT 5:00 PM
and after the regularly scheduled meeting in Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California.

Any and all of the following agenda items are subject to action being taken by the Modesto City Council.

The business to be considered at said City Council meeting shall consist of a Closed Session concerning the following:

CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – Unrepresented Employee Negotiator: Christina Alger
Unrepresented Employee: City Clerk

BY ORDER OF THE CHAIR
/S
Diane Nayares-Perez, City Clerk
Posted pursuant to Government Code Section 54956 on the bulletin board at Tenth Street Place on at by
date time signature
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