ITEM # 6
CITY OF MONTEBELLO
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, City Manager
BY: Alicia Fernandez, Senior Deputy City Clerk
SUBJECT: REVIEW OF COUNCIL ASSIGNMENT TO THE CAPITAL PROJECTS
COMMITTEE - ALAMEDA CORRIDOR EAST AUTHORITY AND
STREETS AD HOC
DATE: February 22, 2023
RECOMMENDATION(S):
It is recommended that the City Council:
1. Review and take action to fill assignments to the Capital Projects Committee - Alameda Corridor East Authority and Streets Ad Hoc.
FISCAL IMPACT:
There is no fiscal impact associated with these assignments.
BACKGROUND/DISCUSSION:
Annually, following the City Council reorganization meeting, the City Council ("Council") reviews assigning members of the Council to represent the City on various Boards, Agencies, Ad Hoc and Task Force Committees. At the January 11, 2023 City Council Meeting, the Council reviewed the current assignments, attached herein as Attachment A and B, to either confirm or make any recommendations as desired.
After listening to the City Council meeting, it appears that although interest in participating in the Capital Projects Committee - Alameda Corridor East Authority (ACE) was made by Mayor Torres no final direction was received by the City Clerk staff to make changes to the 2023 representative and alternate seats. As a result, no changes were made and Councilmember Jimenez retained her seat as the representative, and Councilmember Melendez as the alternate. In addition, the Council discussed the possibility of scheduling a Study Session to further discuss the purpose of the Streets Ad Hoc but assignments
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
were neither confirmed or recommended.
At the request of Mayor Torres, it is recommended that the Council review the current assignments for the Capital Projects Committee - Alameda Corridor East Authority (ACE) and the Streets Ad Hoc to either confirm or make a new recommendation as desired.
Once the Council has confirmed the assignments, staff will then notify the affected agency.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff recommends that the City Council review the current assignments for the Capital Projects Committee - Alameda Corridor East Authority (ACE) and Streets Ad Hoc to either confirm or make a new recommendation as desired.
ATTACHMENT(S)
1. Attachment A - Assignments to Regional Boards for 2023
2. Attachment B - City Ad Hoc and Task Force Assignments for 2023
NEXT STEPS:
N/A
2023
ORGANIZATION COUNCIL
REPRESENTATIVE
ALTERNATE
REPRESENTATIVE STIPEND MEETING INFORMATION LOCATION CONTACT EMAIL/PHONE County of Los Angeles
Sanitation Districts
Torres* Jimenez $125.00 Meets 2nd and 4th Wednesday
1:30 p.m.; Delegate must be
Mayor; anyone can be
alternate.
Sanitation Districts of Los Angeles
County
1955 Workman Mill Road, Whittier, CA
90601
Kim Christensen 562-908-4288 ext. 1101;
[email protected]
Los Angeles County City
Selection Committee
Torres* Peralta* $0 Meets 2-4 times a year
as needed; Delegate must be
Mayor, Alternate MPT, & CM
with longest tenure
thereafter.
Various locations in Los Angeles County Lee Millen [email protected] San Gabriel Valley Council of
Governments (SGVCOG)
Melendez Vacant $75.00 Every 3rd Thursday of the
month at 4pm, with a few
exceptions of Special Meetings
Upper San Gabriel Valley Municipal
Water District
1333 S. Mayflower Ave., Ste. 360
Monrovia, CA 91016 (in person
starting March)
Katie Ward /
Stefanie
Hernandez
[email protected] ;
[email protected]; Office 626-457-
1800
Capital Projects Committee -
Alameda Corridor East
Authority (ACE)
Jimenez Melendez $0 Meets every 4th Monday
12:00 p.m.
West Covina City Hall
1444 W. Garvey Avenue
West Covina, CA
Charlotte
Stadelmann/
Eric Shen
[email protected]; (626) 962-
9292; [email protected]
Gateway Cities Council of
Governments
Jimenez Tamayo $125.00 Meet 1st Wednesday of the
month
6:00 p.m.
Gateway Cities Office
16401 Paramount Blvd, Paramount, CA
Genny Cisneros [email protected] / (562) 663-6850
Independent Cities
Association
Melendez Jimenez $0 Meets 2nd Thursday of the
month
7:00 p.m.
Location varies each month - [email protected]
Montebello Chamber of
Commerce
Tamayo Peralta $0 4th Wednesday of the month
at 8 a.m.
Montebello Chamber of Commerce
817 West Whittier Blvd.
Montebello, CA 90640
Adriana Dugan [email protected]
League of California Cities Jimenez Torres $0 Meets four times a year, 4th Thursday of the month; 6-8
p.m. Schedule found at
www.lacities.org
Location Varies Kristine
Guerrero,
League Staff;
Jennifer Quan,
[email protected]; 626-716-0076;
[email protected] (626) 786-5142
Los Angeles County Vector
Control District
(LACVCD)
Avik Cordeiro
(Resident
Reappointed
11/10/2021-11/2025
for a period of 4 yrs.)
- $100.00 Meets 2nd Thursday of the
month
7:00 p.m.
L.A. County Vector Control District
Headquarters
12545 Florence Avenue
Santa Fe Springs, CA 90670
Truc Dever [email protected]
Southeast Area Animal
Control (SEAACA)
Peralta Tamayo $225.00 Meet 3rd Thursday
2:00 p.m.
Seaaca Office
9777 Seaaca Street
Downey, CA 90241
Cathy Kyle,
Manager,
HR/Finance
[email protected] / (562) 803-
3301 Ext. 221
Southern California
Association of Governments
(SCAG)
Melendez Jimenez $0 - unless
Regional
Councilmemb
er (CM) or
Policy CM
General Assembly Business
meeting meets once a year in
May (May 4-5 in Palm Desert
for 2023)
SCAG Main Office
Wilshire Grand Center
900 Wilshire Boulevard, Suite 1700
Los Angeles, CA 90017
Maggie
Aguilar/Cecilia
Pulido
Maggie Aguilar, Clerk of the Board, (213)
630-1420, [email protected]
Cecilia Pulido, Deputy Clerk of the Board,
(213) 630-1480, [email protected]
City Council Regional Board Assignments
City Council Action: January 11, 2023 Updated 2/16/2023
2023
Name of Committee/Task Force Members Name #1 Name #2 Date of Appointment Ashiya Sister City Association 1 Peralta (Delegate) 1/11/2023 Stepanakert Sister City Association 1 Melendez (Delegate) Established 1/11/23 Innovating Commerce Serving
Communities Ad-Hoc” 2 Torres Peralta 1/11/2022 (established 1/12/22) * Joint School District Ad Hoc 2 Tamayo Jimenez Pending Approval from MUSD
Streets Ad Hoc 2 Vacant Jimenez 1/12/2022 (established 2/2017) Washington Goldline Coalition 2 Melendez (Delegate) 1/11/23 (established 1/12/22; previously the Transportation Ad Hoc)
Financial Reporting Ad Hoc 2 Tamayo Torres Established 1/11/23 Ad Hoc and Task Force Assignments
Updated 2/16/2023
ITEM # 7
CITY OF MONTEBELLO
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, City Manager
BY: James Enriquez, Director of Public Works
SUBJECT: NORTH CONCOURSE AVENUE STREET IMPROVEMENT PROJECT (CP NO. 880) – NOTICE OF COMPLETION
DATE: February 22, 2023
RECOMMENDATION(S):
It is recommended that the City Council:
1. Accept the North Concourse Avenue Street Improvement Project (CP No. 880), as completed by All American Asphalt; and
2. Find that the requested “Changes in Work” for the project (Attachment A) have no significant effect on the environment and approve the changes in the aggregate amount of $214,621; the final contract amount with All American Asphalt is $435,854; and
3. Approve the Final Total Project Budget (Attachment B); and
4. Authorize the City Clerk to execute, verify and file the Notice of Completion (Attachment C) with the Los Angeles County Registrar-Recorder; and
5. Authorize the City Manager to release the retention payment due to All American Asphalt following the mandatory waiting period from the date the Notice of Completion is recorded; and
6. Take such additional, related, action that may be desirable.
FISCAL IMPACT:
The Final Total Project Budget (Attachment B) shows the total funding and sources that were approved by the City Council throughout the life of the project in the aggregate amount of $1,026,000. Also shown is the total aggregate expenditures for the project in the amount of $485,670.
The remaining project balance of $540,330 will be available for reprogramming for other capital improvement projects, with unspent appropriations remaining in the original funds
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
from which they were appropriated (i.e., Gas Tax, SB1/RMRA and Measure M). No additional appropriations or budget amendments are required in order to close the project.
BACKGROUND/DISCUSSION:
The Concourse Avenue Improvement Project limits are from Beverly Blvd. to Madison Ave. and includes the removal and reconstruction of existing concrete sidewalks, curb and gutters, cross gutters, concrete driveway approaches and concrete curb ramps. The project also includes cold milling of existing AC pavement and repaving the street with Asphalt Rubber Hot Mix.
The City Council at its meeting of October 27, 2021, awarded a contract to All American Asphalt in the amount of $224,473 to construct the project and authorized the Director of Public Works to review and approve change orders within a 15% contingency of the contract amount. The contract is a unit priced contract and payment is calculated based on the actual quantities measured in the field. The actual quantities measured in the field resulted in a reduction in the contract amount totaling $3,240. Additionally, extra work was added to the contract in the amount of $214,621, most of which ($143,967) was a result of adding the reconstruction of the intersection of Concourse Ave and Madison Ave. The original design of the project ended short of the intersection. During construction, issues were encountered with the transition from the new to existing pavement and the intersection was added to the project to remedy these issues. The summary of extra work is included in Attachment A. All American Asphalt’s final contract amount, including change orders, is $435,854.
On November 24, 2021, a Letter of Engagement under Master Retainer Agreement (Agreement No. 3920) was executed with Onward Engineering for construction management and inspection services for this project in the amount of $49,450. The contractor was granted additional work days requiring Onward Engineering to provide additional services in the amount of $366. The final fee for Onward Engineering for this project is $49,816.
ENVIRONMENTAL:
N/A
ANALYSIS:
The Contractor completed construction of this project on May 11, 2022. The City Engineer has reviewed the daily inspection reports and determined that the project was completed satisfactorily and in accordance with the project plans and contract specifications. The contractor’s final accounting was reviewed and approved by the City Engineer. The total Construction cost was as indicated below:
Contract Amount $ 221,233
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
Change in work summary $ 214,621
Total construction Cost $435,854
Notice of Completion
Pursuant to Civil Code Section 3093, when a Capital Improvement Project is completed, a Notice of Completion must be prepared and filed with the County Recorder’s Office. In compliance with this section of the Civil Code, the City Engineer has prepared the required Notice of Completion for the City Council to accept the project as completed; and to authorize the City Clerk to execute, verify and file the Notice of Completion for recordation with the County Recorder’s Office. The final retention payment will be released to the contractor forty-five (45) days after recordation of the Notice of Completion with the Los Angeles County Registrar-Recorder.
SUMMARY:
Staff is recommending that the City Council accept the Project as completed, approve the final Project budget and expenditures, including change orders, authorize the City Clerk to execute, verify and file the Notice of Completion with the Los Angeles County Registrar-Recorder and authorize the City Manager to release the retention payment due to All American Asphalt following the mandatory waiting period from the date the Notice of Completion is recorded.
ATTACHMENT(S)
1. Attachment A - Changes in Work Summary
2. Attachment B - Total Project Budget
3. Attachment C - Notice of Completion, CP No. 880
NEXT STEPS:
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CHANGES IN WORK SUMMARY
February 22, 2023
N. CONCOURSE AVENUE STREET IMPROVEMENT PROJECT
CP NO. 880
Project Description:
The N. Concourse Avenue Street Improvement project from Beverly Boulevard to Madison Avenue includes the removal and reconstruction of existing concrete sidewalks, curb and gutters, cross gutters, concrete driveway approaches, and concrete curb ramps. The project also includes cold milling of existing AC pavement and repaving the street with Asphalt Rubber Hot Mix.
Changes in Work:
(1) Additional Concrete work (Sidewalk, Curb& Gutter,
Driveway, Curb Ramp)
$ 51,499
(2) Cold Mill Existing Asphalt Concrete Pavement
(2” Depth)
$ 1,335
(3) Unclassified Excavation $ 39,872
(4) Crushed Miscellaneous Base (CMB) $ 18,292 (5) ARHM Overlay (2” & 4” Thick) $ 29,431
(6) Adjust Existing Utility Manhole, Vault Frames, and Covers to Finish Grade
$ 2,400
(7) Additional Survey Required $ 2,572
(8) Layout for Removals Base & Subgrade $ 2,645 (9) Regrading of removed sidewalk & ADA Ramps $ 1,057 (10) Reset forms for sidewalk
(11) Lowered 2 Water Services 2’ below Sub
(12) Dug Out Yard Drain, lowered and connected 4” to 3” Coupling
(13) Mobilization for additional work
(14) 2 Additional Days for Restoration of new ramp area (15) Remove & Replace Conflicting Crosswalk at Madison Ave & N. Concourse St.
(16) Repair Failed Pavement Area N. Concourse Ave & Via Corona
(17) 421 & 332 Concourse Sign and remove and replace striping
(18) Pave 2” Pad – 8ft x 30 ft
(19) Additional Supervision for added work - 5 days (20) Additional Cost for Testing
Total Changes in Work
$ 158
$ 4,279
$ 2,771
$ 4,500
$ 3,226
$ 6,591
$ 12,609
$ 7,799
$ 5,918
$ 13,202
$ 4,465
$ 214,621
ATTACHMENT A
Description of Changes:
(1) Additional concrete work was requested by City staff due to resident complaints over previous years and locations that were not added to the project. As well as additional work at the intersection of Madison Avenue and N. Concourse Ave. City staff assessed the locations and added additional work that consisted of sawcut and removal of existing concrete sidewalk, curb & gutter, driveway approaches, curb ramps, and concrete or AC pavement, base, and subgrade.
(2) Additional 2” depth cold milling of existing asphalt concrete pavement at the intersection of Madison Ave and N Concourse Ave.
(3) Unclassified excavation due to the additional 2” depth cold mill existing asphalt concrete pavement. The work consisted of removing, hauling, and disposal of existing sub-base, base, and native material all within the project site. (4) Additional Crushed Miscellaneous Base (CMB) placed under additional curb and gutter.
(5) Additional Asphalt Rubber Hot Mix (ARHM) Overlay at the intersection of Madison Ave and N Concourse Ave.
(6) Since new pavement was added, existing utility manholes for sewers and storm drains needed to be adjusted to the grade of the new pavement. (7) Some of the design elevations per plans were not matching the existing elevations, therefore, additional survey was needed for the new design to match existing conditions for the intersection changes at N. Concourse Ave/Via Val Verde/Madison Ave.
(8) Additional layout for removals, base & subgrade for cross-gutters. (9) Additional regrading for removal of existing sidewalk & ADA ramps for improvements at the Concourse Ave and Madison Ave intersection. (10) Additional forms for new sidewalk.
(11) Two existing water services lines were located at a shallow depth. Therefore, they needed to be lower 2’ to avoid any conflict with the new pavement section. (12) Additional irrigation work performed due to the intersection improvements and work requested by residents.
(13) Additional equipment move-in for additional work at the intersection of Madison Ave and N. Concourse Ave.
(14) Additional work for the reconstruction of the north ADA ramp on Madison Ave to a Type case D.
(15) Realignment of the crosswalk for the new ADA ramp on the north side of Madison Ave. by removing the conflicting 12” crosswalk layout and install 12” yellow continental crosswalk. Paid at contract unit price. (16) The work consisted of removal and replacement of failed pavement at N.
Concourse Ave and Via Corona.
(17) At 421 & 332 N Concourse an existing school crossing pavement marking was removed and replaced.
(18) Removed flow line dips by reconstructing intersection with 2” AC pavement. (19) Additional 5 days inspection for the new work at the intersection of Madison Ave and N. Concourse Ave.
(20) Additional compaction testing for the new pavement at the intersection of Madison Ave and N. Concourse Ave.
Revised Contract Amount:
Original contract amount
Adjustment for Final Quantities
Actual contract work completed
$ 224,473
$ -3,240
221,233
Changes in work to be authorized $ 214,621
Revised contract amount $ 435,854
Percent total change to original contract amount 94.2 %
ATTACHMENT B
N. CONCOURSE AVE IMPROVEMENT PROJECT
C.P. NO. 880
FINAL TOTAL PROJECT BUDGET
February 22, 2023
Project Expenses Final Cost
Original Construction Contract (All American Asphalt) – (Awarded 10/27/2021) $ 224,473
Adjustment for Final Quantities Measured $ - 3,240 Construction Change Orders (Recommended) $ 214,621 Construction Management/Inspection (Onward Engineers)
Administrative Authorization on 11/24/2021 $ 49,450 Additional Management/Inspection (Onward Engineers) $ 366 Total Project Cost: $ 485,670
Project Funding Budget Amount
Gas Tax (Fund 200) - (Appropriated FY 19/20 CIP Budget) $ 100,000 Measure M (Fund 222) - (Appropriated FY 19/20 CIP Budget) $ 351,193 SB1 RMRA (Fund 201) - (Appropriated FY 19/20 CIP Budget) $ 169,807 Gas Tax (Fund 200) - (Appropriated on Agenda 10/27/21) $ 100,000 Measure M (Fund 222) - (Appropriated on Agenda 10/27/21) $ 135,000 SB1 RMRA (Fund 201) - (Appropriated on Agenda 10/27/21) $ 170,000 Total Project Budget: $ 1,026,000
Note: The project was completed with a remaining balance of $540,330. These funds will be available for reprogramming for other projects.
ATTACHMENT C
RECORDING REQUESTED BY
CITY OF MONTEBELLO
AND WHEN RECORDED MAIL TO
NAME CITY OF MONTEBELLO
CITY CLERK
STREET 1600 W Beverly Blvd.
ADDRESS
CITY Montebello,
STATE CA
ZIP 90640
SPACE ABOVE LINE FOR RECORDERS USE
________________________________________________________________________________________________________________________________________________
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requi rements.) Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is City of Montebello
3. The full address of the owner is 1600 W Beverly Blvd., Montebello, CA 90640
4. The nature of the interest or estate of the owner is: in fee.
(if other than Fee, strike “In fee” and insert, for example, “purchaser under contract of purchase”, or “lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
_______________________________________________________________________________________________
6. The full names and addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:
NAMES ADDRESSES
____________________________________________________________________________________________
7. A work of improvement on the property hereinafter described was completed on January 13, 2021. The general scope of work consisted of the removal and reconstruction of existing sidewalks, curb and gutters, drive approaches, curb ramps, cold milling and repaving the existing streets, adjustments of utility covers, installation of pavement markings and striping, curb painting, installation of traffic detection loops and installation of a Bio-swell retention basin.
8. The name of the contractor, if any, for such work of improvement was All American Asphalt October 27, 2021
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)
9. The property on which said work of improvement was com pleted is in the City of Montebello County of Los Angeles, State of CA, and is described as follows: N Concourse Ave from Beverly Blvd to Madison Ave
Director of Public Works / City Engineer, City of Montebello (Signature of Owner or corporate officer of Owner named in paragraph 2, or his agent)
VERIFICATION
I, the undersigned, say: I am the City Clerk of the City of Montebello, the declarant of the foregoing Notice of Completion:
I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on_________________ , 2022 at City of Montebello, Montebello, CA _______________________________________________(Personal signature of the individual who is swearing that the contents of the Notice of Completion are true)
DO NOT RECORD
REQUIREMENTS AS TO NOTICE OF COMPLETION
A notice of completion must be filed for record WITHIN 10 DAYS after completion of the work of improvement (to be computed exclusive of the day of completion), as provided in Civil Code Section 3093.
The “owner” who must file for record a notice of completion of a building or other work of improvement means the owner (or his successor in -interest at t he date the notice is filed) on whose behalf the work was done, though his ownership is less than the fee title.
For example, if A is the owner in fee, and B, lessee under a lease, causes a building to be constructed, then B, or whoever has succeeded to h is interest at the date the notice is filed, must file the notice.
If the ownership is in two or more persons as joint tenants or tenants is common, the notice may be signed by any one of the co -owners (in fact, the foregoing form is designed for giving o f the notice by only one cotenant), but the names and addresses of the other co-owners must be stated in paragraph 5 of the form.
Note that any Notice of Completion signed by a successor in interest shall recite the names and addresses of his transferor or transferors.
In paragraphs 3, 5 and 6, the full address called for should include street number, city, county and state.
As to paragraphs 7 and 8, this form should be used only where the notice of completion covers the work of improvement as a whole. If the notice is to be given only of completion of a particular contract, where the work of improvement is made pursuant to two or more original contracts, then this form must be modified as follows: (1) Strike the words “A work of improvement” from parag raph 6 and insert a general statement of the kind of work done or materials furnished pursuant to such contract (e.g., “The foundations for the improvements”); (2) Insert the name of the contractor under the particular contract in paragraph 7.
In paragrap h 8 of the notice, insert the name of the contractor for the work of improvement as a whole. No contractor’s name need be given if there is n o general contractor, e.g., on so-called “owner-builder jobs.”
In paragraph 9, insert the full, legal description , not merely a street address or tax description. Refer to deed or policy of title insurance. If the space provided for description is not sufficient, a rider may be attached.
In paragraph 10, show the street address, if any, assigned to the property by any competent public or governmental authority.
This standard form covers most usual problems in the field indicated. Before you sign, read it, fill in all blanks, and make changes proper to your transaction. Consult a lawyer if you doubt the form’s fitness for your purpose.
ITEM # 8
CITY OF MONTEBELLO
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Joseph Palombi, Director of Planning & Community Development
SUBJECT: ADOPT RESOLUTION NO. 23-14 APPROVING PURCHASE AND SALE AGREEMENT NO. 4077 FOR THE PROPOSED DISPOSITION OF REAL PROPERTY LOCATED AT 5055 PASSONS BOULEVARD, PICO
RIVERA, CA 90660 (LOS ANGELES COUNTY ASSESSOR’S PARCEL
NO. 6377-007-270) AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE PURCHASE AND SALE AGREEMENT ON BEHALF OF
THE CITY OF MONTEBELLO
DATE: February 22, 2023
RECOMMENDATION(S):
It is recommended that the City Council:
1. Adopt Resolution No. 23-14 approving the disposition of real property, approving the material terms of Purchase and Sale Agreement No. 4077 (attached here in substantial form) authorizing the sale of the Property to the City of Pico Rivera, and authorizing the City Attorney and the City Manager (and/or designee), to finalize negotiations and the agreement (with the exception of any material changes), leading up to the execution of all documents related to said agreement.
FISCAL IMPACT:
The City of Montebello is proposing to sell the property located at 5055 Passons Boulevard in the City of Pico Rivera, California identified as Los Angeles County Assessor’s Parcel No. 6377-007-270 (the “Property”) for the appraised market value of $1,270,000. All revenue from the proposed sale would be added to the City’s General Fund.
BACKGROUND/DISCUSSION:
The City is the owner of the Property located within the City of Pico Rivera. The Property
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
is comprised of an approximately 19,611 square foot lot that was developed in 1963 with an approximately 1,186 square foot building used by the Montebello Bus Lines as a layover and bus stop. Bus routes 10 and 60 have utilized the Property as a terminal point or a stop on their routes. Additionally, Los Angeles Metro route 265 utilizes the location as a layover. These routes would be adjusted to find alternative layover locations to avoid any impacts to staffing and public ridership in the future.
On December 13, 2022, the Pico Rivera City Council approved Resolution No. 7241 (please see attached) approving the proposed Purchase and Sale Agreement (please see attached) authorizing the acquisition of the Property by the City of Pico Rivera (also known as the “Buyer”) from the City of Montebello (also known as the “Seller”). The Purchase and Sale Agreement would allow the City to sell the Property to Pico Rivera for the appraised value of $1,270,000 (please see appraisal, Attachment “C”). Pursuant to Pico Rivera Resolution No. 7241, Pico Rivera would develop the Property into a public park to improve equitable access to outdoor recreation and open space opportunities for healthy living.
ENVIRONMENTAL:
In accordance with the California Environmental Quality Act (“CEQA”), the approval of the Purchase and Sale Agreement is exempt from CEQA pursuant to CEQA Guidelines Section 5312 – Class 12 Categorical Exemption (Surplus Government Property Sales) relating to the sale of surplus government property and CEQA Guidelines Section 15061(b)(3), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The approval of the Purchase and Sale Agreement does not authorize a specific project and constitutes a sale of real property in exchange for financial consideration between the City of Montebello and City of Pico Rivera to be used for a public purpose.
ANALYSIS:
The California Surplus Land Act (Government Code 54220 et seq.), or “the SLA”, governs the sale, lease or other transfer of government-owned surplus lands and requires local agencies to prioritize opportunities for certain uses, including affordable housing development, for any land the entity may sell or lease. Effective January 1, 2020, Assembly Bill (AB) No. 1486 and AB No. 1255 amended the SLA to require local agencies to formally declare publicly owned property which is not necessary for the local agency’s use as surplus land prior to disposition. The property may be declared either “surplus” or “exempt surplus” by the legislative body of the local agency, in a regular public meeting, as supported by written findings.
Under the SLA, Surplus land must follow a statutory noticing and negotiation period with certain designated entities, including eligible low-income housing sponsors defined by the California Department of Housing and Community Development (HCD). However,
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
exempt surplus land does not have to follow these procedural requirements of the SLA.
Exempt surplus land is defined to include surplus land that a local agency is transferring to another local, state or federal agency for the agency’s use (Government Code Section 54221 (f)(1)(D). The City has no current plans to develop or make improvements on this property; the declaration as exempt surplus land and the adoption of the attached resolution will be the first step in allowing the disposition process to move forward in accordance with the SLA.
The Property has been declared exempt Surplus Land pursuant to Resolution No. 22-76.
This Resolution was approved by the Montebello City Council on September 14, 2022 (please see Attachment “E”).
SUMMARY:
N/A
ATTACHMENT(S)
1. Attachment A - PR Bus Depot_Resolution No. 23-14_5055 Passon Blvd.
2. Attachment B - Purchase and Sale Agreement No. 4077_5055 Passon Blvd.
3. Attachment C - Appraisal Report_16391-22--5055 Passons Blvd-Pico Rivera- FINAL-05-22-22
4. Attachment D - Pico Rivera Resolution No. 7241 DEC 13 2022
5. Attachment E - Resolution No. 22-76 - Passons Exempt Surplus Land
NEXT STEPS:
N/A
ATTACHMENT A
RESOLUTION NO. 23-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTEBELLO, CALIFORNIA, APPROVING THE PURCHASE AND
SALE AGREEMENT BETWEEN THE CITY OF MONTEBELLO,
CALIFORNIA AND THE CITY OF PICO RIVERA, CALIFORNIA FOR THE REAL PROPERTY IDENTIFIED AS 5055 PASSONS BOULEVARD, PICO RIVERA, CALIFORNIA 90660 (APN: 6377-007-270)
RECITALS
WHEREAS, the City of Montebello (the "City") is the owner in fee simple of real property in the City of Pico Rivera ("Pico Rivera") identified as 5055 Passons Boulevard and having Assessor Parcel Number 6377-007-270 ("Property") legally described on Exhibit "A" and depicted on Exhibit "B'', attached hereto and made a part of hereof; and WHEREAS, the Property is a 19,611 square foot lot with a 1,186 square foot building designated for multifamily residential use; and WHEREAS, Pico Rivera is currently using the Property as a bus terminal for the Los Angeles County Metropolitan Transportation Authority and Montebello Bus Lines operations; and
WHEREAS, Pico Rivera was awarded a grant in the amount of $1 million from the Los Angeles County Regional Park and Open Space District for the acquisition of the Property; and
WHEREAS, Pico Rivera as the “Buyer” desires to develop the Property into a public park that utilizes community-driven design concepts that improve equitable access to outdoor recreation opportunities for healthy living; and WHEREAS, on September 14, 2022, the Montebello City Council adopted Resolution No. 22-76 declaring the Property as “Exempt Surplus Land” pursuant to the Surplus Land Act (“SLA”); and
WHEREAS, a Purchase and Sale Agreement for the Property (or "PSA"), attached hereto as Exhibit "C", has been prepared by the City and Pico Rivera, which establishes the intent for Pico Rivera to provide a $1,000 deposit upon opening of escrow (that shall be credited toward the payment of the Purchase Price) and purchase the Property from the City at the proposed price of $1,270,000 upon close of escrow per Article II of the PSA; and WHEREAS, staff recommends adoption of a Resolution approving the material terms of the PSA for the contemplated sale, disposition of the Property, authorizing the City Manager to finalize negotiations with Pico Rivera, finalizing changes to the PSA (provided that no changes are made to the purchase price or material terms), and executing the PSA in a form approved by the City Attorney.
RESOLUTION NO. 23-14
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:
SECTION 1. ADOPTION OF RECITALS. The above recitals are true and correct and are a substantive part of this Resolution and are incorporated herein as part of the findings.
SECTION 2. ADOPTION. The City Council hereby approves the PSA, in substantially the same form as attached to the Staff Report accompanying this Resolution, between the City of Montebello (as the “Seller”) and the City of Pico Rivera (as the “Buyer”) disposing the Property in conformance with state law, including the SLA. The City Council further authorizes the City Manager to execute the PSA and all other ancillary documents, including but not limited to, escrow instructions, deeds, seller affidavits and such other customary documents consistent with and reasonably necessary to effectuate the intent of this Resolution and record or cause to be recorded such documentation, as approved by the City Attorney.
SECTION 3. ENVIRONMENTAL. The City Council further finds that the approval of the PSA is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15312 - Class 12 Categorical Exemption (Surplus Government Property Sales) relating to the sale of surplus government property and CEQA Guidelines Section 15061 (b)(3), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. None of the exceptions contained under CEQA Guidelines Section 15300.2 apply. The approval of the PSA does not authorize a specific project and constitutes a sale of real property in exchange for financial consideration between the Cities of Montebello and Pico Rivera to be used for a public purpose.
SECTION 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify to the passage and adoption of this resolution.
APPROVED AND ADOPTED THIS 22nd DAY OF February 2023.
_______________________________
David N. Torres, Mayor
ATTEST:APPROVED AS TO FORM:
RESOLUTION NO. 23-14
________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 23-14 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 22 nd day of February 2023 and that said Resolution was adopted by the following vote, to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
DATE:
Christopher Jimenez, City Clerk
CITY OF MONTEBELLO PURCHASE AND SALE AGREEMENT NO. 4077
PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of the ____ day of __________, 2023, until the Agreement has been finalized, by and between THE CITY OF PICO RIVERA, CALIFORNIA, a municipal corporation (“Purchaser”), and THE CITY OF MONTEBELLO, CALIFORNIA, a municipal corporation (“Seller”).
In consideration of the mutual promises, covenants and agreements hereinafter set forth and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:
ARTICLE I
Sale of Property
1.1Sale of Property. Seller hereby agrees to sell, assign and convey to Purchaser, and Purchaser agrees to purchase from Seller, all of Seller’s respective right, title and interest in and to, the following:
1.1.1 Land. That certain real property lying and situated in the City of Pico Rivera, California, consisting of approximately 19,611 square feet and legally described on Exhibit A attached to this Agreement and depicted on Exhibit B attached to this Agreement (the “Land”);
1.1.2 Real Property. All rights, privileges and easements appurtenant to Seller’s interest in the Land, including, without limitation, all of Seller’s right, title and interest, if any, in and to all mineral and water rights and all easements, licenses, covenants and other rights-of-way or other appurtenances used in connection with the beneficial use and enjoyment of the Land (collectively, the “Real Property”, and the Land and the Real Property are hereinafter collectively referred to as the “Property”).
ARTICLE II
Purchase Price; Deposit
2.1Purchase Price. The purchase price for the Property shall be ONE MILLION TWO HUNDRED SEVENTY THOUSAND ($1,270,000.00) DOLLARS (the “Purchase Price”).
The Purchase Price, as adjusted by all prorations as provided for in this Agreement, shall be paid to Seller by Purchaser at Closing (as hereinafter defined) by wire transfer of immediately available federal funds.
2.2Deposit. Within five (5) Business Days (as hereinafter defined) after the Effective Date (as hereinafter defined), Purchaser shall deposit the sum of One Thousand Dollars and no/100 ($1,000.00) as a good faith deposit (“Deposit”) (“Opening of Escrow”) with Title Company (as hereinafter defined), as escrowee (“Escrowee”), at Escrowee’s office located at [TITLE/ESCROW
2 COMPANY NAME AND ADDRESS]. For the purposes of this Agreement, “Effective Date” shall mean the date this Agreement has been fully executed and delivered to Seller and Purchaser.
One Hundred Dollars ($100.00) of the Deposit shall be released by Title Company to Seller on the first Business Day following the deposit thereof by Purchaser, in payment of consideration by Purchaser to Seller for the right of Purchaser to purchase the Property in accordance with the terms of this Agreement (the “Non-Refundable Payment”). The Non-Refundable Payment shall be fully earned and retained by Seller immediately upon receipt and, notwithstanding any provisions of this Agreement to the contrary, the Non-Refundable Payment shall not be returned to Purchaser in any circumstance except if Closing fails to occur solely due to a material default by Seller under this Agreement. On the Closing Date, the amount of the Non-Refundable Payment, without interest, shall be applied to the Purchase Price. From and after the release of the Non-Refundable Payment to Seller, the Deposit shall mean and refer to the remaining Deposit amount then held by Title Company (and any payment or refund of the Deposit to be made pursuant to this Agreement shall not include such Non-Refundable Payment). Purchaser acknowledges that Seller would not have entered into this Agreement had Purchaser not made the bargained for Non-Refundable Payment to Seller on the terms set forth in this Section. The Deposit shall be paid to Seller and credited against the Purchase Price at Closing. If the Closing does not occur in accordance with the terms of this Agreement, the Deposit shall be held and delivered as provided in this Agreement.
ARTICLE III
Closing, Prorations and Closing Costs
3.1Closing. The closing of the transaction(s) contemplated in this Agreement (the “Closing”) shall occur on or before 5:00 p.m. Pacific Standard Time on the forty-fifth (45th) day following the Opening of Escrow or the first business day thereafter, if the 45th day falls on a weekend or holiday,, upon the satisfaction of Purchaser’s and Seller’s obligations set forth in this Agreement (the “Closing Escrow”), and shall be held at the offices of the Title Company, or at such other place agreed to by Seller and Purchaser. Upon creation of the Closing Escrow, the payment of funds and the delivery of all documents required pursuant to this Agreement shall be made through the Closing Escrow. The Closing shall take place in a manner so that, on the date the Closing occurs (the “Closing Date”), the Title Policy (as hereinafter defined) will be delivered to Purchaser, and Seller shall receive the Purchase Price.
3.2Prorations. All matters involving prorations or adjustments to be made in connection with this Agreement and not specifically provided for in some other provision of this Agreement shall be adjusted in accordance with this Section 3.2. For purposes of calculating prorations, Purchaser shall be deemed to be in title to the Property, and, therefore entitled to the income therefrom and responsible for the expenses thereof, on and after the Closing Date. All such prorations shall be made on the basis of the actual number of days of the month which shall have elapsed as of the Closing Date and a three hundred sixty-five (365) day year. Except as otherwise provided in this Section 3.2, the amount of such prorations shall be determined and shall be final as of the Closing Date. All items of income and expense which accrue for the period prior to the Closing Date will be for the account of Seller and all items of income and expense which accrue for the period on and after the Closing Date will be for the account of Purchaser.
3.2.1 Taxes. On or before the Closing Date, Seller shall pay all taxes and assessments, including, without limitation, all special assessments, on the Property which
3 are due and payable prior to the Closing Date. Unpaid taxes and assessments on the Property shall be prorated on an accrual basis as of the Closing Date based upon the most recent ascertainable assessed valuation, tax multipliers and tax rate, but reproration thereof shall be made between Purchaser and Seller at such time as the actual amount of taxes for the applicable tax year shall become known, in order that actual real estate taxes for the periods before and after the Closing Date may be equitably prorated as of the Closing Date and paid between the parties when known. Seller shall be liable for any back tax bill which may be imposed by taxing authorities related to the period prior to the Closing Date, which obligation of Seller shall survive Closing.
3.3Allocation of Closing Costs and Expenses. Seller and Purchaser shall each be responsible for one-half the costs to record any instruments necessary to convey title and the Closing Escrow fee. Purchaser shall bear the cost of the Title Policy charges, any recording fees with respect to the Deed (as hereinafter defined), all costs incurred in connection with obtaining Purchaser’s financing for this transaction, if any, the cost of all title endorsements, if any. If applicable, the cost of transfer taxes shall be paid by Purchaser.
ARTICLE IV
Title
4.1Title.
4.1.1 Promptly after the Effective Date, Purchaser shall apply for a title insurance commitment (the “Commitment”) for an Owner’s Policy of Title Insurance (the “Title Policy”), issued by the Title Company and covering the Real Property. After receipt of the Commitment, Purchaser shall provide or cause the Title Company to provide a copy of the Commitment to Seller. On or before the date (the “Title Objection Date”) that is fifteen (15) days after the date Purchaser receives the Commitment (as hereinafter defined), Purchaser shall notify Seller in writing (the “Title Objection Notice”) of any title exceptions identified in the Commitment that Purchaser disapproves (collectively, the “Unpermitted Exceptions”) and any remaining exceptions shall be deemed permitted (collectively, the “Permitted Exceptions”). Notwithstanding the foregoing, Purchaser and Seller hereby agree that: (i) all non-delinquent property taxes and assessments or (ii) all matters created by or on behalf of Purchaser, including, without limitation, any documents or instruments to be recorded as part of any financing of the Property by Purchaser, shall constitute “Permitted Exceptions”. If Purchaser fails to provide Seller with the Title Objection Notice on or before the Title Objection Date, all exceptions in the Commitment shall be deemed to be Permitted Exceptions, and Purchaser shall be deemed to have waived its right to object to any exceptions in the Commitment.
4.1.2 No less than ten (10) days after being given the Title Objection Notice, Seller shall notify Purchaser in writing of any Unpermitted Exceptions that Seller is unable or unwilling to cause to be removed or insured against prior to or at Closing. With respect to such exceptions, Purchaser shall then elect, by giving written notice to Seller within three (3) days after receipt of Seller’s notice, to: (x) terminate this Agreement, or (y) waive its disapproval of such exceptions, in which case such exceptions shall then be deemed to be Permitted Exceptions. Purchaser’s failure to timely give such notice shall be deemed
4 an election to waive the disapproval of any such exception. If Purchaser elects to terminate this Agreement in accordance with clause (x) above, the Deposit shall be returned to Purchaser as Purchaser’s sole and exclusive remedy as a result of such termination.
4.1.3 Monetary Liens. Notwithstanding anything to the contrary contained in Section 4.1.2 above, Seller shall be required to discharge all mortgages, deeds of trust, real estate taxes, assessments and other governmental levies, fees or charges imposed on the Land, all judgment liens, all mechanics’ liens and similar liens for labor, materials or supplies, and other such monetary liens that may be removed solely through the payment of money prior to Closing (collectively, the “Monetary Liens”), and such matters shall be deemed Objectionable Exceptions, whether or not included in Purchaser’s Title Objection Notice. If, at or prior to Closing, Seller fails to cure all Monetary Liens, in addition to all other remedies available to Purchaser under this Agreement, Purchaser shall have the right to proceed to Closing and deduct from the Purchase Price the amount necessary to cure such Monetary Liens.
4.2 [Reserved].
4.3 Purchaser Due Diligence. Purchaser will have a thirty (30) day “Due Diligence Period” commencing upon Opening of Escrow to conduct any investigation of the Property, which may be extended in writing by the Parties. During the Due Diligence Period Purchaser is invited, urged, and cautioned to conduct, at Purchaser’s expense, such investigations, inspections, surveys, plans, and tests of the Property, including, without implied limitation, soils, groundwater, wells, percolation, geology, environmental, drainage, engineering and utilities investigations, inspections, surveys, plans, and tests (collectively, “Investigations”), as Purchaser determines, in Purchaser’s sole discretion, are required to determine the suitability of the Property for Purchaser’s intended use. Such Investigations shall be conducted at the sole cost and expense of Purchaser.
Purchaser shall hold harmless, indemnify and defend Buyer against all costs, damages, liabilities or expenses, including mechanics lien claims arising out of Purchaser’s activities on the Property.
4.3.1 Seller hereby grants to Purchaser, its employees, representatives, agents and independent contractors, a license to enter the Property for purposes of conducting such Investigations during normal business hours. Purchsaer shall provide City twenty- four (24) hours notice prior to entering the Property.
4.3.2 In the event that Purchaser exercises this right of entry, Purchaser shall comply with all applicable laws and obtain all permits which may be required with respect to its investigations and testing. Purchaser further agrees to indemnify, defend, and hold harmless City and its officers, employees, and agents from and against any and all claims, damages, liabilities, and losses arising from such activities of Purchaser or its employees or agents, and from and against all mechanics’, materialmens’, and other liens resulting from any such conduct. Purchaser shall restore the Property as nearly as possible to its condition existing immediately prior to any such entry by or on behalf of Purchaser. Prior to entry upon the Property, Purchaser shall obtain insurance or proof of self-insurance covering Purchaser's indemnity, hold harmless, and defense obligations to City pursuant to this paragraph. Prior to entry upon the Property for such Investigations, Purchaser shall furnish to Seller duplicates of appropriate certificates of commercial general liability
5 insurance in the amount of at least One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage and Two Million Dollars ($2,000,000) general aggregate limit, naming Seller as an additional insured, insuring Purchaser’s obligations and responsibilities under this paragraph (4). Purchaser shall maintain each such policy in effect until the Close of Escrow.
4.3.3 Purchaser shall notify Seller in writing of any objections as to the condition of the Property, by delivering such written objection to escrow within the Due Diligence Period. Seller shall then have ten (10) days to correct the objection to the reasonable satisfaction of Purchaser or give written notice to Purchaser through escrow that Seller elects to terminate this Agreement. If Seller elects to terminate this Agreement, Purchaser shall have ten (10) days to give written notice to Seller through escrow that Purchaser waives the objection(s).
ARTICLE V
Representations and Warranties of the Seller
5.1Seller’s Representations. Seller represents and warrants that, to Seller’s knowledge, the following matters are true and correct as of the Effective Date with respect to the Property.
5.1.1 Authority. Seller is a municipal corporation, duly organized, validly existing and in good standing under the laws of the State of California. This Agreement has been duly authorized, executed and delivered by Seller, is the legal, valid and binding obligation of Seller, and does not violate any provision of any agreement or judicial order to which Seller is a party or to which Seller is subject. All documents to be executed by Seller which are to be delivered at Closing, will, at the time of Closing: (i) be duly authorized, executed and delivered by Seller, (ii) be legal, valid and binding obligations of Seller, and (iii) not violate any provision of any agreement or judicial order to which Seller is a party or to which Seller is subject.
5.1.2 No Third Party Claims. Seller represents and warrants that there is no suit, legal action, administrative arbitration or other proceeding or governmental investigation process which has been served upon Seller or, which to Seller’s best knowledge, is otherwise pending or threatened against Seller in which any party is making or has made a claim or defense that, if sustained, would materially and adversely affect the performance of Seller under this Agreement or materially and adversely interfere with the ability of Seller to consummate the transactions contemplated herein.
5.1.3 Violation of Laws. To Seller’s knowledge, Seller has received no written notice of any violation of any statute or ordinance relating to the Property that has not been cured.
5.2Seller’s Knowledge. For purposes of this Agreement and any document delivered at Closing, whenever the phrases “to Seller’s knowledge” or the “knowledge” of Seller or words of similar import are used, they shall be deemed to refer to the current, actual knowledge only, and not any implied, imputed or constructive knowledge, without any independent investigation having
6 been made or any implied duty to investigate, of the Director of Planning and Community Development of the City of Montebello or other Seller designee. Notwithstanding anything to the contrary contained in this Agreement, the Director of Planning and Community Development of the City of Montebello or other Seller designee shall have no personal liability under this Agreement.
5.3Change in Representation/Waiver.
5.3.1 Representations/Waiver. Notwithstanding anything to the contrary in this Agreement, Purchaser acknowledges that Purchaser shall not be entitled to rely on any representation made by Seller in this Article V, to the extent that, prior to or at Closing, Purchaser shall have or obtain actual knowledge of any information contradictory to such representation or warranty; provided, however, if Purchaser determines prior to Closing that there is a breach of any of the representations and warranties made by Seller in this Article V, then Purchaser may, at its option, by sending to Seller written notice of its election, either: (i) terminate this Agreement, in which event the Deposit shall be returned to Purchaser and, except for the Surviving Obligations, neither party shall have any further rights or obligations to the other under this Agreement, or (ii) waive such breach and/or conditions and proceed to Closing with no adjustment in the Purchase Price, and Seller shall have no further liability as to such matter thereafter.
5.3.2 Property Condition Waiver. Notwithstanding any other provision of this Agreement to the contrary, following the Closing Date, Purchaser waives its right to recover from Seller, its elected officials, agents, and employees (collectively, "Seller’s Representatives"), and hereby waives, releases and forever discharges Seller and Seller’s Representatives from, any and all damages, losses, liabilities, costs or expenses whatsoever (including attorneys' fees and costs) and claims therefor, whether direct or indirect, known or unknown, foreseen or unforeseen, which may arise on account of or in any way arising out of or connected with the Property, including (i) the physical condition, nature or quality of the Property, including geologic conditions, (ii) the quality of the labor and materials included in any improvements or fixtures located on or within the Property (including latent defects), (iii) the presence of asbestos and lead-based paint, (iv) the failure of the Property, including any existing improvements thereon, to comply with any law or regulation applicable thereto, (v) the inaccuracy or incompleteness of plans, drawings, specifications, any documents provided by Seller, and (vi) the environmental condition of the Property.
The foregoing waiver and release shall exclude only those losses, liabilities, damages, costs or expenses, and claims therefor, arising from or attributable to any breach by Seller of its express representations or warranties under this Agreement.
In connection with foregoing waiver and release, Purchaser expressly waives the benefits of Section 1542 of the California Civil Code, which provides as follows:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
7 MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR OR RELEASED PARTY."
_____________________
Purchaser's Initials
5.4Survival. The express representations and warranties made in this Agreement by Seller shall not merge into any instrument or conveyance delivered at Closing; provided, however, that any action, suit or proceeding with respect to the truth, accuracy or completeness of such representations and warranties shall be commenced, if at all, on or before the date that is six (6) months after the Closing Date (“Survival Period”) and, if not commenced on or before such date, thereafter such representations and warranties shall be void and of no force or effect.
Notwithstanding any other term of this Agreement, any claim based upon a misrepresentation or a breach of a covenant or warranty under this Agreement that expressly survives the Closing shall be actionable or enforceable if and only if: (i) notice of such claim(s) is given to Seller prior to the expiration of the Survival Period; and (ii) the amount of damages or losses as a result of such claims suffered or sustained by the party making such claims exceeds $50,000.00; and provided further that the aggregate liability of Seller for any and all such breaches or misrepresentations shall be limited to $250,000.00.
ARTICLE VI
Seller’s Interim Operating Covenants
6.1Operations. Seller agrees to continue to operate, manage and maintain the Property through the Closing Date in the ordinary course of Seller’s business and substantially in accordance with Seller’s present practice, subject to ordinary wear and tear.
6.2No Sales. Seller agrees that it shall not convey any interest in the Property to any third party.
ARTICLE VII
Possession
7.1Possession. Possession of the Property shall be delivered to Purchaser on the Closing Date free and clear of all possessory interests with the exception of the Permitted Exceptions.
ARTICLE VIII
Closing
8.1Purchaser’s Closing Obligations. Purchaser, at its sole cost and expense, shall deliver or cause to be delivered to the Title Company at Closing the following, duly executed and acknowledged as applicable:
8.1.1 The Purchase Price, subject to adjustments and prorations as provided in this Agreement, by wire transfer or other immediately available federal funds.
8.1.2 A Preliminary Change of Ownership Report.
8 8.1.3 If required by the Title Company, evidence reasonably satisfactory to the Title Company that the person executing the closing documents on behalf of Purchaser has full right, power and authority to do so.
8.1.4 Such other documents as may be reasonably necessary or appropriate to effect the consummation of the transactions which are the subject of this Agreement.
8.1.5 If prior to the expiration of the Due Diligence Period, Purchaser shall have approved all Due Diligence matters or have waived any objections in writing.
8.2Seller’s Closing Obligations. Seller, at its sole cost and expense, shall deliver or cause to be delivered to the Title Company at Closing the following, duly executed and acknowledged as applicable:
8.2.1 A grant deed in the form attached to this Agreement as Exhibit C conveying to Purchaser the Real Property in fee simple, subject only to the Permitted Exceptions (the “Deed”).
8.2.2 California Form 593-C (California Real Estate Withholding Exemption Certificate) in the form required by applicable law.
8.2.3 If required by the Title Company, evidence reasonably satisfactory to the Title Company that the persons executing the closing documents on behalf of Seller have full right, power and authority to do so.
8.2.4 Such other documents as may be reasonably necessary or appropriate to effect the consummation of the transactions which are the subject of this Agreement.
ARTICLE IX
Intentionally Deleted
ARTICLE X
Default
10.1Default by Seller. If the Closing and the transactions contemplated in this Agreement do not occur as provided in this Agreement by reason of the default of Seller, and said default is not cured within five (5) Business Days after notice from Purchaser, Purchaser may elect, by written notice to Seller and as the sole and exclusive remedy of Purchaser, to: (i) terminate this Agreement and receive the Deposit from the Title Company, and in such event Seller shall not have any liability whatsoever to Purchaser under this Agreement except for the Surviving Obligations; or (ii) enforce specific performance of Seller’s obligations under this Agreement.
10.2Default by Purchaser. If Purchaser should breach any of its covenants contained in this Agreement (and Seller shall not be in default hereunder), Seller may terminate this Agreement without further liability on Seller’s part and retain the Deposit as liquidated damages, and not as a penalty, it being understood that Seller’s actual damages in the event of such a default are difficult to ascertain and that such Deposit represents the parties’ best estimate of such damages. Seller shall not have any other remedy for any default by Purchaser. BY INITIALING
9 THIS SECTION 10.2, PURCHASER AND SELLER AGREE THAT IN EVENT OF DEFAULT BY PURCHASER: (A) IT WOULD BE IMPRACTICAL OR EXTREMELY DIFFICULT TO FIX ACTUAL DAMAGES; (B) AN AMOUNT EQUAL TO THE DEPOSIT WILL CONSTITUTE LIQUIDATED DAMAGES PAYABLE TO SELLER; (C) THE PAYMENT OF
THE LIQUIDATED DAMAGES TO SELLER WILL CONSTITUTE THE EXCLUSIVE REMEDY OF SELLER; (D) SELLER MAY RETAIN THAT PAYMENT AS LIQUIDATED DAMAGES; AND (E) PAYMENT OF THOSE SUMS TO SELLER AS LIQUIDATED
DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT INSTEAD, IS
INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO SECTIONS 1671, 1676 AND 1677 OF THE CALIFORNIA CIVIL CODE.
Seller INITIALS: ____________ Purchaser INITIALS: _______________.
ARTICLE XI
Brokers
11.1Brokers. Purchaser and Seller each represents and warrants to the other that it has not dealt with any person or entity entitled to a brokerage commission, finder’s fee or other compensation with respect to the transaction contemplated in this Agreement. Purchaser hereby agrees to indemnify, defend, and hold Seller harmless from and against any claims, demands, suits, obligations, payments, damages, losses, penalties, liabilities, costs and expenses (including but not limited to attorneys’ fees and costs) incurred by Seller by reason of any breach or inaccuracy of the Purchaser’s representations and warranties contained in this Article XI. Seller hereby agrees to indemnify, defend, and hold Purchaser harmless from and against any claims, demands, suits, obligations, payments, damages, losses, penalties, liabilities, costs and expenses (including but not limited to attorneys’ fees and costs) incurred by Purchaser by reason of any breach or inaccuracy of Seller’s representations and warranties contained in this Article XI. Seller and Purchaser agree that it is their specific intent that no broker shall be a party to or a third party beneficiary of this Agreement or the Deposit, that no broker shall have any rights or cause of action under this Agreement, and further that the consent of a broker shall not be necessary to any agreement, amendment, or document with respect to the transaction contemplated in this Agreement. The provisions of this Article XI shall survive Closing or the termination of this Agreement.
ARTICLE XII
Conditions Precedent to Closing
12.1 In addition to any conditions provided in other provisions of this Agreement, Purchaser’s obligation to purchase the Property is and shall be conditioned upon the following:
12.1.1 The due performance of Seller of each and every covenant, undertaking and agreement to be performed by Seller under this Agreement and the truth of each representation and warranty made in this Agreement by Seller.
12.2 Purchaser may, at any time or times, at its election, waive any of the conditions to its obligations under this Agreement, but any such waiver shall be effective only if contained in a writing signed by Purchaser. The failure of any of the conditions in Section 12.1 shall entitle
10 Purchaser, at its option, to cancel and terminate this Agreement by written notice to Seller, in which event the Deposit shall be returned to Purchaser and, except as specifically provided in this Agreement, neither party shall have any rights or obligations to the other under this Agreement.
ARTICLE XIII
Miscellaneous
13.1Right of Entry; Indemnification. Between the Effective Date and the Closing Date, Buyer and Buyer's employees, agents, contractors, subcontractors and consultants (collectively, "Buyer's Representatives") shall have the right to enter upon the Property, at reasonable times during ordinary business hours, upon notice to Seller at least three (3) business days prior to entry, to perform such non-destructive inspections, investigations, tests and studies.
Buyer, in performing its non-destructive inspections, investigations, tests and studies hereunder shall not unreasonably interfere with the operation of the Property, and agrees to coordinate its activities on the Property with Seller in advance to avoid any such interference. Following any such non-destructive tests or inspections, Buyer agrees to promptly return any portions of the Property damaged or altered by Buyer during such tests or inspections to substantially the same condition which existed prior to such test or inspection. In the event Buyer fails to promptly restore Property in accordance with the preceding sentence, Seller may, in its sole and absolute discretion, restore the Property and all costs and expenses shall be paid immediately by Buyer upon demand by Seller. Buyer shall indemnify, defend and hold Seller, including its elected officials, agents, employees harmless from any and all claims, damages or liabilities arising out of or resulting from the entry onto or activities upon the Property by Buyer or Buyer's Representatives or liens arising from Buyer's review of the Property.
13.2 All notices, consents, approvals and other communications which may be or are required to be given by either Seller or Purchaser under this Agreement shall be properly given only if made in writing and sent by (i) certified mail, (ii) electronic mail by pdf or (iii) a nationally recognized overnight delivery service (such as Federal Express, UPS Next Day Air), with all delivery charges paid by the sender and addressed to the Purchaser or Sellers, as applicable, as follows, or at such other address as each may request in writing. Such notices shall be deemed received, (x) sent by certified mail, in which case notice shall be deemed delivered three (3) Business Days after deposit, postage prepaid, in the United States Mail, (y) if delivered by overnight delivery service, on the date of delivery and (z) if sent by facsimile transmission or electronic mail pdf, on the date of transmission. Notices to be sent on behalf of Purchaser or Sellers may be sent by their respective counsel. The refusal to accept delivery shall constitute acceptance and, in such event, the date of delivery shall be the date on which delivery was refused.
Said addresses for notices are to be as follows:
If intended for Purchaser: Steve Carmona, City Manager
City of Pico Rivera
6615 Passons Blvd
Pico Rivera, California 90660
Email: [email protected]
11 If intended for Seller: Rene Bobadilla, City Manager City of Montebello
1600 W Beverly Blvd
Montebello, California 90640
Email: [email protected]
13.3Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California, without regard to the conflict of laws principles thereof.
13.4Headings. The captions and headings used in this Agreement are for convenience and reference only and in no way define or limit the scope or content of this Agreement or in any way affect its provisions.
13.5Business Days. If any date set forth in this Agreement for the performance of any obligations of Seller or Purchaser or for the delivery of any instrument, Document or notice as herein provided should be on a Saturday, Sunday or legal holiday, the compliance with such obligations or delivery shall be deemed acceptable on the next Business Day following such Saturday, Sunday or legal holiday. As used herein, the term “legal holiday” means any state or Federal holiday for which financial institutions or post offices are generally closed in the State of California, and the term “Business Day” means any day other than a Saturday, Sunday or legal holiday.
13.6Counterpart/Electronic Copies. This Agreement may be executed in two or more counterpart copies, all of which counterparts shall have the same force and effect as if all parties hereto had executed a single copy of this Agreement. Handwritten signatures to this Agreement transmitted by telecopy or electronic transmission (for example, through the use of a Portable Document Format or “PDF” file) shall be valid and effective to bind the parties so signing. It is expressly agreed that each party to this Agreement shall be bound by its own telecopied or electronically transmitted handwritten signature and shall accept the telecopy or electronically transmitted handwritten signature of the other party to this Agreement. The parties hereto agree that the use of telecopied or electronic signatures for the execution of this Agreement shall be legal and binding and shall have the same full force and effect as if originally signed.
13.7Binding Effect. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. Whenever reference is made in this Agreement to Seller or Purchaser, such reference shall include the successors and assigns of such party under this Agreement.
13.8Assignment. The terms, conditions and covenants of this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective nominees, successors, beneficiaries and assigns; provided, however, no conveyance, assignment or transfer of any interest whatsoever of, in, or to the Project or of this Agreement shall be made by Seller during the term of this Agreement. Purchaser may assign all or any of its right, title and interest under this Agreement to any corporate, limited liability or partnership entity affiliated with, or related to Purchaser (“Affiliate”). No such assignee shall accrue any obligations or liabilities hereunder until
12 the effective date of such assignment. In addition to its right of assignment, Purchaser shall also have the right, exercisable prior to Closing, to designate any Affiliate, as the grantee or transferee of any or all of the conveyances, transfers and assignments to be made by Seller at Closing hereunder, independent of, or in addition to, any assignment of this Agreement. In the event of an assignment of this Agreement by Purchaser, its assignee shall be deemed to be the Purchaser hereunder for all purposes hereof, and shall have all rights of Purchaser hereunder (including, but not limited to, the right of further assignment), and the assignor shall be released from all liability hereunder. In the event that an Affiliate shall be designated as a transferee hereunder, that transferee shall have the benefit of all of the representations and rights which, by the terms of this Agreement, are incorporated in or relate to the conveyance in question.
13.9Interpretation. This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared by counsel for one of the parties, it being recognized that both Seller and Purchaser have contributed substantially and materially to the preparation of this Agreement.
13.10Entire Agreement. This Agreement and the Exhibits attached hereto contain the final and entire agreement between the parties hereto with respect to the sale and purchase of the Property and are intended to be an integration of all prior negotiations and understandings.
Purchaser, Seller and their agents shall not be bound by any terms, conditions, statements, warranties or representations, oral or written, not contained in this Agreement. No modification, amendment, discharge, waiver or change of this Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, amendment, discharge, waiver or change is sought. Writings signed by the attorney for such party shall not be effective for purposes of this Section. Failure by either party to explicitly retain any rights under this Agreement shall not be deemed a waiver of such rights.
13.11Severability. If any one or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained in this Agreement.
13.12Survival. Except as otherwise specifically provided for in this Agreement (collectively, the “Surviving Obligations”), the provisions of this Agreement and the representations and warranties herein shall not survive Closing or the termination of this Agreement, and if Closing occurs, shall be merged therein.
13.13Exhibits. Exhibits A through C attached to this Agreement are, by this reference, incorporated in and made a part of this Agreement.
13.14Time. Time is of the essence in the performance of each of the parties’ respective obligations contained in this Agreement.
13.15Limitation of Liability. The obligations of Seller are binding only on Seller and Seller’s assets and shall not be personally binding upon, nor shall any resort be had to, the private properties of any of the affiliates, investment managers, property managers, partners, trustees,
13 shareholders, beneficiaries, directors, or officers of Seller, or of any partners, officers, directors, shareholders or beneficiaries of any partners of Seller, or of any of Seller’s employees or agents.
All documents to be executed by Seller shall also be deemed to contain the foregoing exculpation.
The provisions of this Section 13.15 shall survive Closing or the termination of this Agreement.
13.16Prevailing Party. Should either party employ an attorney to enforce any of the provisions hereof, whether before or after Closing, and including any claims or actions involving amounts held in escrow, the non-prevailing party in any final judgment agrees to pay the other party’s reasonable expenses, including reasonable attorneys’ fees and costs in or out of litigation and, if in litigation, trial, appellate, bankruptcy or other proceedings, expended or incurred in connection therewith, as determined by a court of competent jurisdiction. The provisions of this Section 13.16 shall survive Closing or the termination of this Agreement.
13.17No Recording. Neither this Agreement nor any memorandum or short form of this Agreement shall be recorded or filed in any public land or other public records of any jurisdiction, by either party and any attempt to do so may be treated by the other party as a breach of this Agreement.
13.18Waiver of Trial by Jury. Each of Seller and Purchaser hereby waives trial by jury in any action, proceeding or counterclaim brought by such party against the other party on any matters whatsoever arising out of or in any way connected with this Agreement, including without limitation in connection with the enforcement of any remedy under any statute, emergency or otherwise.
[SIGNATURES APPEAR ON NEXT PAGE]
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal on the date or dates set forth below.
SELLER:
THE CITY OF MONTEBELLO, CALIFORNIA, a
municipal corporation
By:
Rene Bobadilla, City Manager
PURCHASER:
THE CITY OF PICO RIVERA, CALIFORNIA, a
municipal corporation
By:
Steve Carmona, City Manager
EXHIBITS PAGE
Exhibits
Exhibit A - Legal Description of Real Property
Exhibit B - Depiction of Real Property
Exhibit C - Form of Deed
A-A-1
EXHIBIT A
LEGAL DESCRIPTION
(See Attached)
B-B-1
EXHIBIT B
DEPICTION OF REAL PROPERTY
(See Attached)
C-C-1
EXHIBIT C
FORM OF GRANT DEED
[TO COME]
AGREEMENT OF PURCHASE AND SALE
BY AND BETWEEN
THE CITY OF PICO RIVERA, CALIFORNIA
(“PURCHASER”)
AND
THE CITY OF MONTEBELLO, CALIFORNIA
(“SELLER”)
_________, 2022
Property: 5055 Passons Boulevard in the City of Pico Rivera, California, containing approximately 19,611 square feet
APPRAISAL REPORT
5055 Passons Blvd., Pico Rivera, CA 90660
CR File No.16391-22
5901 W. Century Blvd., Suite 1230 Los Angeles, CA 90045 T: 310.215.0482 F: 310.215.3089 www.CurtisRosenthal.com
5055 Passons Blvd., Pico Rivera, CA 90660
5901 W. Century Blvd., Suite 1230 Los Angeles, CA 90045 T: 310.215.0482 F: 310.215.3089 www.CurtisRosenthal.com May 22, 2022
Michael L. Garcia
Community & Economic Development Director
City of Pico Rivera
6615 Passons Blvd., Pico Rivera, CA 90660
p: 562-801-4398
f: 562-949-0280
Email: [email protected]
RE: APPRAISAL REPORT
5055 Passons Blvd., Pico Rivera, CA 90660
CR File No.16391-22
Dear Mr. Garcia,
Per your request, we have appraised the above-referenced property. Our appraisal is intended to conform to:
• The Uniform Standards of Professional Appraisal Practice (USPAP) • California Code of Civil Procedure §1263.320
Our analyses and conclusions are contained in this Appraisal Report which is intended to comply with the reporting requirements set forth in USPAP Standards Rule 2 -2. In conformance with the Scope of Work rule of USPAP, the sections below describe the Scope of Work for this assignment.
Client - The client for this assignment is/are the City of Pico Rivera and their designated representatives.
Intended Users - The intended user s of this report are the Client and their assigns. There are no other authorized users of this report.
Intended Use - The intended use of this assignment is to assist the client in determination the Fair Market Value of the subject property for the possible purchase of the property.
Purpose of this Assignment - The purpose of this assignment is to develop an opinion of the Fair Market Value of the subject property, as defined in the Addenda, of the ownership interest(s) in the subject.
Effective Date of Value - The valuation table below includes the effective date of value for each valuation premise included in this assignment.
Letter of Transmittal
Relevant Characteristics of the Subject Property - The subject property land area consists of one parcel.
The Los Ange les County assessor’s parcel number is 6377 -007-270. The City of Montebello owns the subject property. The Los Angeles County assessor records show the parcel size as being 19,611 square feet or 0.45 acre. The Fair Market Value is for the vacant land only.
The property is zoned R-M, Multiple-Family Residential Variable Density. The property is located at 5055 Passons Blvd., Pico Rivera, CA 90660 . The property is located on the southwest corner of Passons Blvd. and Jackson Street. It is located in incorporated City of Pico Rivera, Los Angeles County, State of California.
Major streets in the area include Rosemead Blvd., Workman Mill Road, Whitter Blvd., Beverly Blvd. and Norwalk Blvd.
Effective Date of Value –The effective date of value is April 4, 2022, the date of the most recent inspection of the subject.
Analytical Approach- Our analysis included an inspection of the subject property, research of general data relating to the subject locale, research of transactions in the subject market area, as well as research of other market-related influences affecting the subject property. In our analysis, we gave consideration to the applicability of each of the traditional approaches to value including the Cost, Sales Comparison, and Income approaches. The methodology and data used in our valuation of the subject property are detailed in the Valuation Section of this appraisal report.
Conditions of this Assignment - The analyses and conclusions in this assignment are subject to the Scope of Work described above, the General Assumptions and Limiting Conditions that are contained within this appraisal report, and the following:
• Extraordinary Assumptions , which USPAP d efines as assignment-specific assumptions 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.
1. The subject property land area consists of one parcel with the parcel size as being 0.45 acre or approximately 19,611 sf. If more accurate information becomes available, we reserve the right to revise the appraisal report. The use of this Extraordinary Assumption may have affected the assignment results.
2. There may be easements for roads, water pipelines, mains and ditches, easements, if any, in favor of the public or other parties, over the property. A Preliminary Title Report was provided from Fidelity National Title Company dated A pril 1 9, 202 2. There are assumed to be no significant impacts, except as to the following: Items 1, 2 and 3, as stated in the preliminary title report in the addenda. The locations of these Items could not be determined. We assume that these items would not adversely affect the use of the property . If more accurate information becomes available, we reserve the right to revise the appraisal report. The use of this Extraordinary Assumption may have affected the assignment results.
Letter of Transmittal
• Hypothetical Conditions, which USPAP defines as conditions directly related to a specific assignment, which are contrary to what is known by the appraiser to exist on the effective date of the assignment results but are used for the purpose of analysis.
1. The subject property is valued as its highest and best use with the current R -M zoning and additionally with a hypothetical deed restriction for use in perpetuity as a public park, with an agreement that bus drivers may use the restroom facilities at this future park. If more accurate information becomes available, we reserve the right to revise the appraisal report. The use of this Hypothetical Condition may have affected the assignment results.
• Special Limiting Conditions, which are assignment-specific conditions that limit the use of the report.
1. None.
Significant Valuation Issues- The following are assignment-specific issues which we found to be significant in this valuation assignment.
1. Market concerns regarding the COVID -19 coronavirus have resulted in substantial volatility in the capital markets, increasing uncertainty in the real property marketplace. It is difficult to predict what may happen in the capital markets going forward. As a result, it is difficult to predict what may happen to real property values over time. Our valuation of the subject property considered the best information that was available at the time of our anal ysis. Due to on -going volatility in the marketplace, users of this appraisal should consider the current market uncertainty when determining the level of confidence they choose to place on these analyses and conclusions. Users are reminded that the appraisal conclusions in this report are effective as of the stated date(s) of valuation.
Letter of Transmittal
Value Conclusion
Based upon the investigations conducted, the analyses made, our experience as a real estate analysts and appraisers, the Assumptions and Limiting Conditi ons and the Certifications contained in this Appraisal Report, we estimate that the Fair Market Value of the subject property, as of the effective date of valuation, is as follows:
CONCLUSION- Fair Market Value as Highest and Best Use-Multiple Family Residential
As a result of our investigation and analysis, it is our opinion that the Fair Market Value of proposed fee simple acquisition and temporary construction easement acquisitions of the subject property, as of the effective date of valuation, is:
Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Fair Market Value Fee Simple 5/22/2022 $1,270,000
CONCLUSION-Fair Market Value as Park/Open Space
As a result of our investigation and analysis, it is our opinion that the Fair Market Value of proposed fee simple acquisition and temporary construction easement acquisitions of the subject property, as of the effective date of valuation, is:
Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Fair Market Value Fee Simple 5/22/2022 $40,000
Thank you for the opportunity to be of service to you. If you have any questions regarding the material presented in this report, or if you require any further assistance, please contact us.
Sincerely,
CURTIS-ROSENTHAL, INC.
Randall Blaesi, ASA, SR/WA, MRICS David M. Rosenthal, MAI, FRICS CA #AG008581 CA #AG001641
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 1
Table of Contents
EXECUTIVE SUMMARY ................................ ................................ ................................ .......................2 SITE DESCRIPTION ................................ ................................ ................................ ............................ 34 HIGHEST AND BEST USE ................................ ................................ ................................ ................... 42 VALUATION TECHNIQUES OVERVIEW ................................ ................................ ............................... 44 COST APPROACH ................................ ................................ ................................ .............................. 45 SALES COMPARISON APPROACH ................................ ................................ ................................ ...... 46 COVID-19 Market Impacts ................................ ................................ ................................ ................ 48 VALUE RECAPITULATION ................................ ................................ ................................ .................. 58 MARKETING/EXPOSURE TIME ESTIMATION ................................ ................................ ...................... 74 CERTIFICATION ................................ ................................ ................................ ................................ 75 ADDENDA ................................ ................................ ................................ ................................ ........ 77
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 2
EXECUTIVE SUMMARY
Identification of Property: For the purposes of this appraisal, we utilize a location for the subject property of 5055 Passons Blvd., Pico
Rivera, CA 90660.
Assessor Parcel No: 6377-007-270.
Property Rights Appraised: Fee Simple interest.
Land Area: The subject property land area consists of a 19,611 square foot or 0.45-acre parcel , as per the county
assessor records.
Improvements: The subject is valued as vacant land.
Zoning: The property is zoned R-M, Multiple-Family Residential Variable Density.
Flood Zone: Zone X, as shown on map 06037C1830F dated
09/26/2008. Zone X is the flood insurance rate zone that corresponds to the areas of 0.2-percent chance flood;
areas of 1% annual chance flood; and areas protected by levees from 1% annual chance flood . Mandatory flood
insurance purchase is not required.
Earthquake: Properties in California are subject to some degree of earthquake risk. We are not seismic engineers and we
are not qualified to determine earthquake hazards. Our
appraisal ass umes that the subject is not adversely
impacted by atypical earthquake risk. We recommend
obtaining a geologic study to determine any potential
earthquake hazard that might impact the subject site
Utilities: The property is assumed to have public utilities available, including water, sewer, electricity, natural gas, internet and telephone.
Highest & Best Use Multiple-Family Residential.
PARCEL OWNERSHIP
Owner: According to the Preliminary Title Report for the subject, the owner is the City of Montebello.
Owner Title of Interest: Fee Simple title.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 3
Date of Inspection: May 22, 2022.
Date of Value: May 22, 2022.
Value Conclusions:
CONCLUSION- Fair Market Value as Highest and Best Use-Multiple Family Residential
As a result of our investigation and analysis, it is our opinion that the Fair Market Value of proposed fee simple acquisition and temporary construction easement acquisitions of the subject property, as of the effective date of valuation, is:
Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Fair Market Value Fee Simple 5/22/2022 $1,270,000
CONCLUSION-Fair Market Value as Park/Open Space
As a result of our investigation and analysis, it is our opinion that the Fair Market Value of proposed fee simple acquisition and temporary construction easement acquisitions of the subject property, as of the effective date of valuation, is:
Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Fair Market Value Fee Simple 5/22/2022 $40,000
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 4
MARKET AREA ANALYSIS
The Los Angeles metropolitan area encompasses the five counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura. It is comprised of the following four Metropolitan Statistical Areas (MSA's): Los Angeles, Orange County, Oxnard-Ventura, and Riverside-San Bernardino.
The region is well served by several international airports (including Los Angeles International and Ontario International), Amtrak (the national passenger rail service), and several east -west and north -south interstate highway systems. Intra -regional transportation service includes a network of freeways, a commuter rail system, bus systems, and a growing system of subway and light-rail trains.
Los Angeles County Overview
Los Angeles County is one of California's original 27 counties and was established February 18, 1850.
Originally the county occupied a comparatively small area along the coast between Santa Barbara and San Diego; however, it soon expanded rapidly as far east as the Colorado River. During subsequent years, Los Angeles County slowly reduced in size, with the last major detachment occurring in 1889 with the creation of Orange County. It remains one of the nation's largest counties with approximately 4,084 square miles, area 800 square miles larger than the combined area of the states of Delaware and Rhode Island; and marginally smaller than the state of Connecticut. Los Angeles County has a relatively central location within the region. Although it lies on the coast, it stretches inland approximately 100 miles. It includes the islands of San Clemente and Santa Catalina and is bordered on the east by San Bernardino County, on the north by Kern County, on the west by Ventura County, and on the south by the Orange County and the Pacific Ocean. Its coastline is 81 miles long.
Los Angeles County is considered the capital of Greater Los Angeles. It contains 88 separate incorporated cities, more th an twice as many as in any of the other Greater Los Angeles counties. It is the most populated county in the nation. According to Department of Finance estimates for January 2020, the county's population is more than 10.1 million. The most populated city within the county is the City of Los Angeles with more than 4.0 million residents, or 40 percent of the total county population.
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Los Angeles County Economy
The Los Angeles economy is on solid footing during this economic expansion. Businesses had continued to expand in L.A. However, L.A.'s labor market has been historically tight.
The metro's economy is diverse, with a high concentration of workers employed in entertainment, tech, logistics, and tourism indu stries, as well as various manufacturing industries such as aerospace, food products, apparel, computer/electronics, and chemicals. The industry diversity reduces risk of lower global demand from any one of these goods or services.
L.A. position as the entertainment capital of the world and the increased demand for video streaming and social media has been a boon to the L.A. economy.
Tourism is important for the local economy. Over 500,000 people in the county are employed in the leisure and hospitality industry.
As a structural issue, the prohibitive cost of housing in L.A. is a major impediment to hiring and is often cited as a motivating factor for companies to relocate to other parts of the country. Some are relocating to more affordable areas of the country, like Arizona, Nevada, and Texas.
Bigger picture, the metro remains an entry point for international migration and an attractive destination for educated talent. More people making six-figure paychecks continue to move to L.A. than are leaving.
Education levels, while below the national average, continue to improve year after year.
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County Economy2F2F
1 1 LAEDC Economic Forecast and Industry Outlook
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AREA MAP
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City of Los Angeles
The City of Los Angeles represents the cornerstone of the Southern California metropolitan area. It is the largest city in California in population and land area. It is the second largest city in the United States. The city encompasses approximately 470 sq uare miles and operates under a council -mayor form of government. It was originally founded in 1781 and was incorporated in 1850.
The City of Los Angeles’ population has increased steadily over the decades due largely to its favorable climate, Multiple-Family Residential base and job growth. The overall rate of population growth was greater prior to the 1990’s, when a national recession coupled with a major downturn in the local aerospace industry had a significant impact of the region. Although not up to the growth rates seen prior to the recession, the rate of population growth is again on the rise.
Transportation systems servicing the city include shipping (Los Angeles & Long Beach Harbors), air transport (Los Angeles International Airport, Long Beach Airport, Burbank Airport, and other regional airports), an extensive interstate and intrastate highway system, and an established railway system. The burgeoning population of the greater Los Angeles area has in the past two decades given rise to an expanding light railway system, as well as additional freeways and traffic corridors to facilitate commuters.
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The City of Los Angeles is unusual amongst American cities in that while it has a successful downtown commercial district, the city as a whole has a long history of ann exing adjacent communities, which has resulted in an expansion reflective of a “Multiple Nuclei Model”, whereby multiple cities/communities with their own central business districts and radiating growth patterns have merged over the years into what is now becoming a megalopolis, with multiple core business districts and residential areas that have their own unique dynamics. For example, in addition to the downtown Los Angeles central business district, there are other successful suburban districts including the Westside and San Fernando Valley, as well as culturally founded communities such as Chinatown, Little Tokyo and Koreatown.
The greater Los Angeles area has become the nation’s number two business center, second only to New York. The area’s economic expansion has created important challenges to the continuity of future growth, both in the greater Los Angeles area and the city itself. Among these challenges are affordable housing, transportation, air quality, water supply and the community infrastructure. Public policy, technology and competition will continue to reshape the manufacturing, commercial and Multiple-Family Residential marketplaces of the city.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 10
City of Los Angeles Demographics
Source: www.stdbonline.com
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 11
CITY OF PICO RIVERA
The subject property is in the City of Pico Rivera. Major streets in the area include Mission Mill Road, Workman Mill Road, Whitter Blvd., Beverly Blvd., Norwalk Blvd. and Rosemead Blvd. Pico Rivera is a city located in southeastern Los Angeles County in the state of California. The city is approximately 11 miles southeast of downtown Los Angeles, on the eastern edge of the Los Angeles basin and on the southern edge of San Gabriel Valley. The ports of Long Beach and Los Angeles, as well as Los Angeles International Airport are in proximity. Pico Rivera was incorporated January 29, 1958 and has an area of approximately
8.88 square miles and elevation of 164 feet. Pico Rivera has a Council-Manager type of government. The City of Pico Rivera is situated between the Rio Hondo River and the San Gabriel River. The area was once predominantly agricultural. The city has changed from the small farming community in the 1800’s to one of over 64,260 residents . There is a mix of residential land uses, commercial uses and Multiple-Family Residential uses within the city.
Pico Rivera was founded in 1958, from a merger of the unincorporated communities of Pico and Rivera.
The top ten employers in Pico Rivera are: El Rancho Unified School District, Wal -Mart Supercenter, Southern Calif. Gas, Make Mark, Cintas Facility Services Los Angeles, Target, Feit Electric Co., Inc, Bay Cities Containers, First Source, LLC, and Lowes.
Surrounding communities include the following:
• To the North: City of Montebello, Unincorporated area of Los Angeles County and City of Whittier
• To the South: Downey and Santa Fe Springs
• To the West: Montebello and City of Commerce
• To the East: Whittier, City of Industry, Unincorporated area of Los Angeles County.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 12
Neighborhood Description
The subject is located in an area of primarily commercial and multi-family uses along the primary thoroughfares. The immediate area of the subject property is generally characterized as an commercial and residential area. There are low and medium density residential uses in the broader surrounding market area along the local streets.
The immediate area is considered to be improving, with rental rates and sales prices generally rising gradually. There are few vacant land sites available for new development.
The subject is located at 5055 Passons Blvd., Pico Rivera, CA 90660.
The property is located on the southwest corner of Passons Blvd. and Jackson Street . It is located in incorporated City of Pico Rivera, Los Angeles County, State of California. Rosemead Blvd., Workman Mill Road, Whitter Blvd., Beverly Blvd. and Norwalk Blvd. are considered to be primary thoroughfares within the subject area. Freeway access to the subject property is considered good. Interstate 605 Freeway is located approximately 0.2 mile to the southwest of the subject via Whittier Blvd.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 13
Location Maps
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AERIAL PHOTOS
THE SUBJECT IS THE ROADWAY FOR BAYBAR ROAD, NORTH OF THE PARCEL IN YELLOW.
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CoStar Market & Submarket Summary and Subject Demographics2
2 COSTAR MARKET ANALYSIS
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CONCLUSION
The market for apartments is strog, with rising rents.
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Site Area
SITE DESCRIPTION
The subject property land area consists of 19,611 square feet or 0.45 acres.
Site Shape Rectangular.
Topography The subject site is generally level in topography.
Improvements The subject is valued as vacant land.
Vehicular Access
The subject is located at 5055 Passons Blvd., Pico Rivera, CA 90660.
The property is located on the southwest corner of Passons Blvd. and Jackson Street. It is located in incorporated City of Pico Rivera, Los Angeles County, State of California. Rosemead Blvd., Workman Mill Road, Whitter Blvd., Be verly Blvd. and Norwalk Blvd. are considered to be primary thoroughfares within the subject area. Freeway access to the subject property is considered good. Interstate 605 Freeway is located approximately 0.2 mile to the southwest of the subject via Whittier Blvd.
Pedestrian Access
Legal Description
Assessor’s Parcel
Numbers
The property is accessed via Passons Blvd. and Jackson Street.
Please refer to the Preliminary Title Report. A copy is included in the addenda.
6377-007-270.
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Zoning
The property is zoned R-M, Multiple-Family Residential Variable Density , according to the City zoning map. The zoning code allows for 1 unit per 2,000 s f. for parcels between 12,000 and 20,000 sf in size. The parcel size is 19,611 sf. This would yield a total of 9 dwelling units for the subject property . H owever, additional requirements such as setbacks, open space, etc. could reduce th e number of dwelling units allowed.
Chapter 18.18 R-M MULTIPLE-FAMILY RESIDENTIAL VARIABLE
DENSITY ZONE
18.18.010 Establishment.
There is hereby established a zone which shall hereinafter be known as the “R- M multiple-family residential variable density zone,” and which shall function and serve as set out in this chapter. (Prior code § 9205.06)
18.18.020 Intent and purpose.
The intent and purpose of the R-M zone is to principally designate and classify certain areas within the city for development of multiple-family residential housing and apartment complexes, and to provide for the integration of developments and uses of land more closely related to multiple-family residential characteristics best suited to carry out the needs of the community. (Prior code § 9205.06 (A))
18.18.030 Applicability—Criteria.
A. The R-M zone is a land use classification which, in part, assists in the implementation of the residential land use and housing elements of the general plan. It is a zone classification designed to be applied on selected areas of the community where the concentration of population can be varied and controlled, yet sufficiently flexible to accommodate the housing needs projected for the city.
B. Application of the R-M zone can provide for development to serve as a low-density residential transition between more intense residential uses of land and single-family residential neighborhoods, can provide compatible development along principal streets and highways, can serve as a medium-density residential transition between less-intense residential land uses and more-intense commercial activities, and can provide for development of high-density residential apartment complexes.
C. The R-M zone need not be restricted entirely to residential uses of land, and may include public, semipublic, institutional and other transitional land uses which would not necessarily be compatible with solely residential or limited commercial uses.
D. The application of the R-M zone for high-density residential apartment complexes serves also as a transitional development adjacent to large-scale commercial facilities where consumer purchasing power is a necessary ingredient to the overall scheme of land use planning.
E. When qualifying, application of the R-M zone must clearly be defined in accordance with the criteria herein, be protected from the encroachment of land
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Zoning
Compliance
uses that do not perform a function of this zone classification, and be protected from the tendency to yield to oversaturation and concentration of population.
F. Uses of land and development which do not qualify and which are not specifically permitted in the R-M zone are hereby expressly prohibited. (Prior code § 9205.06 (B))
18.18.040 Permitted uses.
Regulations governing permitted uses of land in the R-M zone are specifically set forth in Chapter 18.40 of this title. (Prior code § 9205.06 (C))
18.18.050 Property development conditions.
Regulations governing the development of property for uses of land in the R-M zone are specifically set forth in Chapter 18.42 of this title. (Prior code § 9205.06 (D))
18.18.060 Off-street parking.
Regulations governing off-street parking requirements for uses and development of property in the R-M zone are specifically set forth in Chapter
18.44 of this title. (Prior code § 9205.06 (E))
18.18.070 Signs and advertising.
Regulations governing permitted signs and advertising for uses and development of property in the R-M zone are specifically set forth in Chapter
18.46 of this title. (Prior code § 9205.06 (F))
Not Applicable. The subject is valued as vacant land.
Utilities
The property is assumed to have public utilities available, including water, sewer, electricity, natural gas, internet and telephone.
Flood Zone Zone X, as shown on map 06037C1830F dated 09/26/2008. Zone X is the flood insurance rate zone that corresponds to the areas of 0.2 -percent chance flood; areas of 1% annual chance flood; and areas protected by levees from 1% annual chance flood. Mandatory flood insurance purchase is not required.
Earthquake Zone Properties in California are subject to some degree of earthquake risk. We are not seismic engineers and we are not qualified to determine earthquake hazards.
Our appraisal assumes that the subject is not adversely impacted by atypical earthquake risk. We recommend obtaining a geologic study to determine any potential earthquake hazard that may impact the subject site.
Soil Conditions We were not provided with a soils report . We recommend consulting with a qualified geologist or soil engineer to determine the extent and cost to cure of any underlying soil conditions that exist on the subject site.
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Environmental
Conditions
An environmental report was not provided to us. We recommend consulting with a qualified environmental expert, geologist or soil engineer to determine the extent and cost to cure of any underlying soil conditions that exist on the subject site.
Easements and
Encumbrances There may be easements for roads, water pipelines, mains and ditches, easements, if any, in favor of the public or other parties, over the property. A Preliminary Title Report was provided from Fidelity National Title Company dated A pril 19, 2022.
There are assumed to be no significant impacts, except as to the following: Items 1, 2 and 3, as stated in the preliminary title report in the addenda. The locations of these Items could not be determined. We assume that these i tems would not adversely affect the use of the property . If more accurate information becomes available, we reserve the right to revise the appraisal report.
We are not aware of any other easements or encumbrances impacting the subject other than those imposed by utilities, local government and quasi -government agencies for utilities, rights-of-way, etc.
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PLAT MAP
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Photographs of the Subject
Subject – View N-from S end of subject
Subject – View S from S end of subject
Subject – View N along central portion
Subject – View N along central portion
Subject – View N along central portion
Subject – View N along central portion
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Ownership and Property History
The subject is owned by the City of Montebello.
We are not aware of any arms -length sales, listings, escrows or pending sales of the subject property during the past three years.
Assessed Value and Taxes
The subject is owned by the City of Montebello and there are no real property assessments or taxes.
Under California Proposition 13, the real estate tax rate is limited to 1% of assessed value plus limited amounts for direct assessments. The property is reassessed upon sale, significant remodeling, or new construction. A purchaser must pay taxes based on the assessed val ue (typically equal to the purchase price) of the property at the time of sale. For purposes of our analysis, we assume a tax liability based upon our opinion of value. We assume that all real estate taxes are paid current.
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HIGHEST AND BEST USE
Highest and Best Use is defined as the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. In the analysis of highest and best use as though vacant and the highest and best use as improved, we have considered four criteria: legally permissible, physically possible, economically feasible and maximally productive.
Since improved properties sometimes do not 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.
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 general plan, 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 disaster?
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 will produce the highest residual land value consistent with the rate of return warranted by the market for that use?
When appraising a property, whether improved or vacant, the appraiser determines the highest and best use of the land only. Then, if the property is improved, the appraiser determines its highest and best use as improved.
HIGHEST AND BEST USE AS VACANT
Legally Permissible Uses . The property is zoned R-M, Multiple-Family Residential Variable Density , according to the City zoning map . The zoning code allows for 1 unit per 2,000 s f. for parcels between 12,000 and 20,000 s f in size. The parcel size is 19,611 sf. This would yield a total of 9 dwelling units for the subject property. However, additional requirements such as setbacks, open space, etc. could reduce the number of dwelling units allowed.
A variety of Multiple-Family Residential uses would be legally permissible on the subject site.
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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 parcel can have a significant effect on the type of development that is possible and on the economies of scale.
The physical characteristics of the parcel such as size, shape, frontage, topography, accessibility, are adequate for Multiple-Family Residential use. It is assumed that p ublic water, public sewer, e lectricity, internet and telephone are available to the subject site.
The subject property land area consists of 19,611 square feet or 0.45 acres. It is an rectangular in shape
Consideration was given to the individual features of the land including, location, size, shape, availability of public utilities and access to roadways. Consideration was also given to the neighboring land uses and the current land use demands in the area.
It is considered feasible to develop the subject for Multiple-Family Residential use.
Based upon the analysis, the phys ically possible use for the subject property is for Multiple-Family Residential uses.
Financially Feasible / Maximally Productive Uses. A 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.
Given the location of the subject site, there is substantial demand for Multiple-Family Residential uses.
Based upon the analysis, the Financially Feasible/ Maximally Productive Uses for the subject property are for Multiple-Family Residential uses.
Conclusion:
Our analysis indicates that the highest and best use of the subject site is for Multiple-Family Residential use. Based upon the analysis, the physically possible use for the subject property is for Multiple-Family Residential uses. Multiple-Family Residential use is financially feasible and represents the Highest and Best Use of the site.
HIGHEST AND BEST USE AS IMPROVED - The property is assumed to be vacant. The subject is valued as vacant land.
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VALUATION TECHNIQUES OVERVIEW
VALUATION PREMISE
The three accepted approaches to value are the Sales Comparison Approach, the Income Approach (capitalization analysis) and the Cost Approach (reproduction or replacement cost analysis).
Cost Approach
This approach is based on the proposition that an informed purchaser would pay no more for a property than the cost of producing a substitute property with the same utility. It is particularly applicable when the subject property involves relatively new improvements that represent the Highest and Best Use of the land, or when relatively unique or specialized improvements are located on the site for which there exist no comparable properties in the market. The Cost Approach is not utilized in this analysis. Vacant land is not typically valued utilizing the Cost Approach.
Sales Comparison Approach
This is an appraisal procedure in which the valuation is predicated upon prices paid in actual market transactions and current listings. The former suggests the lower limit of value in a static or advancing market and suggests the higher limit of value in a declining market. The latter suggests the high limit in any market. It is a process of analyzing sales of similar, recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon:
1. Availability of comparable sales data
2. Verification of the sales data, and
3. The degree of comparability or extent of adjustment necessary
The Sales Comparison Approach utilizing comparable land sales will be used to estimate the value of the subject land. When adequate data is available, this approach is generally considered the best indication of market value for the land value “as is.”
Income Capitalization Approach
This approach is widely applied in appraising income-producing properties. Anticipated present and future income, as well as any future reversions, is discounted to the present value through capit alization. This approach relies upon market data to establish current economic rents and expense levels to arrive at an expected net income. The Income Approach was not utilized in this analysis.
Valuation Methodology Used in This Assignment
Our valuation of the subject property includes the following analyses:
• Sales Comparison Approach
These analyses will be conducted prior to consideration of changes in market conditions due to the impacts of COVID-19, which will be separately addressed as part of the Reconciliation.
The subject property is valued as its highest and best use with the current R-M zoning and additionally with a hypothetical deed restriction for use in perpetuity as a public park, with an agreement that bus drivers may use the restroom facilities at this future park. It is subject to the Assumptions and Limiting Conditions contained herein.
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COST APPROACH
The Cost Approach is based on the economic principle of substitution. A cornerstone of this valuation approach is the premise that an informed buyer would not pay more for a property than the cost of acquiring a comparable vacant site and constructing an improvement program of similar utility.
The fundamental steps of the Cost Approach are outlined below:
1. Estimate the value of the site assumed vacant and available for development to its Highest and Best use.
2. Estimate the total reproduction or replacement costs associated with the improvement program. These costs include direct or hard costs such as building materials and labor, as well as indirect or soft costs such as financing charges, real estate taxes during construction, professional fees, carrying charges, etc.
Reproduction costs are used when it is necessary to estimate the costs to exactly replicate a building in every detail. Typically, a replacement cost estimate is more appropriate and useful. The replacement cost estimate is based on the expense associated w ith developing a similar building of equal utility and function.
3. Estimate an appropriate level of entrepreneurial profit. This cost reflects the required return to the developer for assuming the time, coordination, and risk associated with project development. This cost is distinct from contractor’s profit and overhead which is incorporated as a direct cost.
4. Add together the total construction costs (i.e. -direct costs, indirect costs, and entrepreneurial profit) associated with development.
5. Subtract any observed levels of depreciation impacting the subject property. Depreciation may stem from physical deterioration, functional obsolescence, or economic obsolescence. The total construction cost adjusted for accrued depreciation yields the Replacement or Reproduction Cost less Depreciation.
6. Add the total depreciated improvement value to the estimated land value to derive the value indicated by the Cost Approach.
The Cost Approach is not applicable to the valuation of the subject property for the following reason:
• The Sales Comparison approach is the conventional approaches relied upon by participants in the subject’s marketplace.
The Cost Approach is not utilized in this analysis.
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SALES COMPARISON APPROACH
SALES COMPARISON APPROACH-LAND VALUATION
Highest and Best Use-Multiple Family Residential
The Sales Comparison Approach is a method of valuation that compares prices paid for similar properties in an open and free marketplace. A survey of the market in the subject area was made in an effort to locate comparable sales of similar properties, which would aid in forming an opinion of the value for the subject property.
Of the sales data discovered and investigated, the data presented are considered the most pertinent and most defensible since they represent transactions that have recently taken place among purchasers who could have considered the subject if it were available in the marketplace.
Our research parameters are summarized below.
SALE COMPARABLES PRIMARY SEARCH PARAMETERS
Location
Land sales in the market area of the subject. A wide search area was considered given the large size of the subject property and the scarcity of sales of comparably sized sites Sale Date January 2020 to present
Property Type 0.25 acre to 5 acres of land
Method of Analysis
Price Per Square Foot Our research in the marketplace indicated that most investors would analyze sales comparables on this basis.
A survey of the market in the subject area was made in an effort to locate comparable sales of similar properties within the subject marketplace, which would aid in forming an opinion of the value for the subject property. Our research revealed several properties to compare to the subject.
The analysis that follows relies on a detailed discussion of specific strengths and weaknesses observed among the data items, with individual adjustments applied in the form of an adjustment matrix.
Subsequent to the presentation of data, further comments relating to our analysis and valuation are provided.
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The initial stages of the appraisal process include the investigation, organization, and analysis of relevant market data and other information that relates to t he value of the subject property. By searching public records and interviewing buyers, sellers, real estate agents, developers, and others, we have found data pertaining to sales of properties reasonably comparable to the subject property.
The analysis in the Sales Comparison Approach compares the subject property to other properties that have sold in the market area. The following sales were considered meaningful in providing an indication of value for the subject property. A map of the comparable sales and summary of the comparable sales are presented as well.
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COMPARABLE SALES MAP
N
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ITEM SALE DATE ZONE CASH EQV. PRICE
DOCUMENT NO. SQUARE FEET PRICE PER SF
ASSESSOR'S PARCEL NUMBER SELLER ACRES PRICE PER UNIT
COMMENTS BUYER DWELLING UNITS UNITS PER ACRE
1 5495 Gardendale Street March 11, 2022 R3 1,000,000$
Southgate, CA 90280 1163688 22,651 44.15$
6234-008-054 HGDB Holdings, LLC/Hugo Garcia 0.52 83,333$ Sold with plans for 12 apt. units 12 23.08
2 5300-5306 Live Oak Street February 26, 2022 R3 3,200,000$ Cudahy, CA 90201 223662 40,075 79.85$
6226-017-024 & 025 Bogdanoff Trust/ Alex Bagdanoff 0.92 266,667$ 12 dwelling units allowed Arevalo Trust/Jose Arevalo 12 13.04 3 7935-7941 Greenleaf Avenue February 24, 2021 C2 2,080,000$ Whittier, CA 90602 309619 28,009 74.26$
8141-027-015 & 036 SNW Development, Inc./Chao Di Su 0.64 115,556$ 18 dwelling units proposed KK Properties group, LLC/Slufong Wu 18 27.99 4 14807-14815 Pioneer Blvd. December 2, 2020 R4 4,200,000$ Norwalk, CA 90650 1564974 72,022 58.32$
8074-024-002, 003 & 007 Cox Trust/Elaine Cox 1.65 84,000$ 50 dwelling units allowed Pioneer Apt., LP/Abboud 50 30.24 5 N/L Garvey Rd. East of Peck Rd. November 30, 2020 MMU 1,050,000$ El Monte, CA 91732 1538376 16,901 62.13$
8566-011-032 Byrd-Liu Trust/Richard Byrd 0.39 87,500$
Sold w/ plans for 12 condos+ 2,561 sf retail QND, LLC/Quynh Dang 12 30.93 6 4926 Elizabeth Street July 16, 2020 HDR 840,000$
Cudahy, CA 90201 778145 20,534 40.91$
6224-003-024 Melanie & Tiffany Moran 0.47 105,000$
Proposed for 8 dwelling units Bertha Reynaga 8 16.97
SUMMARY OF EFFECTIVELY VACANT LAND SALES
STREET ADDRESS
CITY STATE ZIP
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Aerial Maps of Comparable Sales
Sale Number One
Sale Number Two
Sale Number Three
Sale Number Four
Sale Number Five
Sale Number Six
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DISCUSSION OF SALE COMPARABLES-LAND VALUATION
This analysis identifies the similarities and differences between subject and comparable properties. The primary elements of comparison include property rights, financing terms, conditions of sale (motivation), market conditions (sale date), and physical characteristics (e.g. zoning, utilities, site improvements, location, access, etc.). The common quantitative adjustment process involves paired sales analysis that compares two or more market sales to derive an indication of the adjustment for a single characteristic and applies it to the applicable data. Recognizing the weaknesses inherent in a quantitative analysis, a qualitative technique can be used. The adjustments applied are not necessarily representative of paired- data analysis and are not intended to be viewed in a precise or absolute context. Rather, they are intended to offer general insight with regard to the order of magnitude afforded each of the adjustment categories, as determined by the appraiser by virtue of our investigations into the subject marketplace.
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Market Conditions (Time)
CoStar market trends from the graph below and research with other sources suggest that values have increased recently. The overall rate of increase is estimated at 3% per year. Therefore, a time adjustment is required for the comparable sales occurring over 6 months ago.
On the subsequent pages are a discussion and an opinion of value for the subject property.
Generally, quantitative adjustments consist of making either percentage or dollar adjustments to account for the differences between the subject and the comparable sales. Qualitative adjustments require the appraiser to rank the comparable sales in terms of inferiority/superiority to the subject. In this appraisal, we utilize qualitative analysis.
GENERAL LOCATION
The comparable sales are rated similar in location, compared to the subject. No adjustment is required.
SPECIFIC LOCATION
The comparable sales are adjusted as required, based upon location on a superior or inferior location, as compared to the subject.
SIZE
The comparable sales vary in size. The various sizes are adjusted as required to reflect market influence, compared to the subject.
SHAPE/UTILITY
The comparable sales have adequate frontage and depth for development and are all s imilar to the subject.
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ZONE/ENTITLEMENTS/DENSITY
The subject is zoned R-M, Multiple-Family Residential. The comparable sales have similar land use and/or development density as compared to the subject or are adjusted accordingly.
ACCESS
All of the comparable sales are located on public roads with good access. The subject property is accessed via a public street.
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Discussion of Data Items
Comparable 1 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated similar to the subject (economies of scale). The zoning/entitlements/density is rated similar to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Victor Arizmendi of Red Carpet Pueblo Realty. All factors considered; the subject unit value is estimated above this indicated value at $44.15 per square foot of land.
Comparable 2 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning/entitlements/density is rated inferior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Juan Cardenas of RE/MAX Commercial & Investment Realty. All factors considered; the subject unit value is estimated below this indicated value at $90.23 per square foot of land.
Comparable 3 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The sale was confirmed by Kelly, assistant to broker Henry Liu of C BD Investments. All factors considered; the subject unit value is estimated below this indicated value at $76.50 per square foot of land.
Comparable 4 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Eric Reuvni of Los Angeles Commercial Real Estate Group, who was under a non -disclosure agreement, but stated that the information in CoStar was correct. All factors considered; the subject unit value is estimated above this indicated value at $62.47 per square foot of land.
Comparable 5 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated superior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Robert Ho of Long Dragon Realty. All factors considered; the subject unit value is estimated above this indicated value at $62.07 per square foot of land.
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Comparable 6 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated similar to the subject (economies of scale). The zoning/entitlements/density is rated inferior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The sale was confirmed by Brji Grinau of Zacuto Group. All factors considered; the subject unit value is estimated above this indicated value at $45.52 per square foot of land.
SUBJECT One Two Three Four Five Six
Sale Price N/A $1,000,000 $3,200,000 $2,080,000 $4,200,000 $1,050,000 $840,000 Land Size Acres 0.45 0.52 0.92 0.64 1.65 0.39 0.47
Land Size Square Feet 19,611 22,651 40,075 28,009 72,022 16,901 20,534 $ per SF N/A $44.15 $79.85 $74.26 $58.32 $62.13 $40.91
Rights Conveyed Fee Simple 0% 0% 0% 0% 0% 0%
Adjusted $ psf N/A $44.15 $79.85 $74.26 $58.32 $62.13 $40.91 Financing Terms Conventional 0% 0% 0% 0% 0% 0%
Condition of Sale Conventional 0% 0% 0% 0% 0% 0%
Adjusted $ psf N/A $44.15 $79.85 $74.26 $58.32 $62.13 $40.91 Date May-22 0.0% 0.0% 2.0% 3.0% 3.0% 4.0%
Adjusted $ psf N/A $44.15 $79.85 $75.75 $60.06 $63.99 $42.54 General Location Pico Rivera
Specific Location
Pico Rivera
5055 Passons Blvd.
Site Size 19,611 5% 2% 6% -1%
Topography Generally Level
Shape/Utility Rectangular/Good
Zone/Entilements/ Density
R-M, M-F Res.
20 DU/Acre
No Entitlements 8% -1% -2% -2% 7%
Extraordinary Development Cost No
Access Good
Visibility/Street Frontage
SWC Passons Blvd. &
Jackson Street
Subtotal of Adjustments 0% 13% 1% 4% -3% 7%
FINAL INDICATORS $44.15 $90.23 $76.50 $62.47 $62.07 $45.52
ADJUSTMENT OF COMPARABLE LAND DATA
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LAND VALUE CONCLUSION
Comparable Sales that had older improvements were sold for land value.
The subject does not currently have development entitlements. All of the comparables are given equal weight in the analysis. The sale comparables indicate a n adjusted range for the subject from $ 44.15 to $90.23 per square foot, as shown on the following table.
The median for the sales is $ 62.27 per square foot and the average is $ 63.49 per square foot. The comparable sales are all within a reasonable range. Below, in the Array, are the comparables considered to be most indicative for the value of the subject.
The subject parcel is value is considered to be toward the middle of the range of Comparable Sales approximately $65.00 per square foot. The appraisers reconciled the preceding value range. A unit value of $65.00 per square foot is appropriate for the subject property.
LAND VALUE CONCLUSION BY THE SALES COMPARISON APPROACH
Highest and Best Use-Multiple Family Residential
Based on the analysis above, we conclude to a unit value of $65.00 per square foot for the subject site.
Using this unit value, it is our opinion that the Fair Market Value of the subject property according to the Sales Comparison Approach, prior to consideration of changes in market conditions due to the impacts of COVID-19, which will be separately addressed below, is as follows:
Sale Number Overall Comparison Adjusted $/SF
2 Superior $90.23
3 Superior $76.50
SUBJECT
4 Inferior $62.47
5 Inferior $62.07
6 Inferior $45.52
1 Inferior $44.15
LAND VALUE ARRAY
Property Type Site Size (sf) x Unit Value = Market Value Rounded Land 19,611 x 65.00$ = 1,274,715$ 1,270,000$
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 57
COVID-19 Market Impacts
As discussed previously, the current/ongoing Covid -19 global pandemic is having reported impact on financing rates/lender spreads, lowered loan -to-value (LTV) ratios, landlord and tenant cash flows, etc. Given the rapidity of events related to the pandemic that have affected real estate sales, the present risks (as of the effective date of value) appear to be financing related and broad uncertainty in global/national/local economics in the near term. This being the case, research regarding price/value discounting for the subject is prudent. Comparables investigated show an upward trend.
Based on the comparable sales trends, published information on the virus impacts available to us and our discussions with market participants, it is considered that there is no risk discount for the subject that is warranted at this time.
CONCLUSION to Impact of COVID-19 on Subject Property Valuation There does not appear to be an adverse economic impact on the subject, b ased on research of market studies such as the ones cited above . We conclude that No COVID adjustment for market conditions in the Fair Market Value reported is warranted.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 58
VALUE RECAPITULATION
Highest and Best Use-Multiple Family Residential
Our valuation analyses presented in this appraisal report concluded to the following opinions:
Valuation Approach Value Conclusion
Cost Approach Not Applicable
Sales Comparison Approach $1,270,000
Income Capitalization Approach Not Applicable
The Cost Approach is considered to be a strong indicator of value in recently constructed buildings, particularly when current construction costs are available and there is recent comparable land sale data that would lead to an accurate estimate of the underlying site value. This approach is weakened, however, as a building grows older because of the difficulty in accurately measuring physical depreciation. The Cost Approach can serve as a check for the other two approaches in order to assure the reasonableness of the Sales Comparison and Income Capitalization Approaches.
The Cost Approach is not applicable to this assignment for the following reason:
• The subject property is vacant land. The Sales Comparison Approach is the valuation method utilized by market participants.
The Sales Comparison Approach can be a strong indicator of value when there is an adequate number of comparable property sales that are similar to the subject in physical, functional, economic and location characteristics. This approach is weakened when t he quantity or nature of available market data is insufficient for purposes of direct comparison.
We gave primary consideration to the Sales Comparison Approach because generally vacant open land similar to the subject property are purchased by owner-users or developers using this approach.
The Income Capitalization Approach considers the future expectations of investors for properties such as the subject. It considers current market rental activity and rate -of-return requirements through the selection of a market-derived overall capitalization rate. This approach is most relevant when there are sufficient rental comparables from which to draw market rent conclusions and adequate market data from which to determine market cap rate requirements.
The Income Approach is not considered because the subject is not purchased for its income potential.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 59
CONCLUSION- Fair Market Value as Highest and Best Use-Multiple Family Residential
Our research indicates that the Sales Comparison Approach should be given the greatest consideration in our final determination of value.
As a result of our investigation and analysis, it is our opinion that the Fair Market Value of proposed fee simple acquisition and temporary construction easement acquisitions of the subject property, as of the effective date of valuation, is:
Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Fair Market Value Fee Simple 5/22/2022 $1,270,000
Our analyses and conclusions are based on the Scope of Work described above and the General Assumptions and Limiting Conditions.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 60
SALES COMPARISON APPROACH-LAND VALUATION
Fair Market Value as Park/Open Space
The client has requested a Fair Mar ket Value as Park/Open Space . The land is valued with a deed restriction limiting the use as park or open space, with the agreement that bus drivers may use the restroom faci lities in the future park in perpetuity. The land sale s utilized for Fair Mar ket Value as Park/Open Space valuation are either strictly open space land or land with limite d development potential, due to location, shape, topography, access, utility or other factors.
The Sales Comparison Approach is a method of valuation that compares prices paid for similar properties in an open and free marketplace. A survey of the market in the subject area was made in an effort to locate comparable sales of similar properties, which would aid in forming an opinion of the value for the subject property.
Of the sales data discovered and investigated, the data presented are considered the most pertinent and most defensible since they represent transactions that have recently taken place among purchasers who could have considered the subject if it were available in the marketplace.
Our research parameters are summarized below.
SALE COMPARABLES PRIMARY SEARCH PARAMETERS
Location
Land sales in the market area of the subject. A wide search area was considered given the large size of the subject property and the scarcity of sales of comparably sized sites Sale Date January 2021 to present
Property Type 0.10 acre to 5 acres of land
Method of Analysis
Price Per Square Foot Our research in the marketplace indicated that most investors would analyze sales comparables on this basis.
A survey of the market in the subject area was made in an effort to locate comparable sales of similar properties within the subject marketplace, which would aid in forming an opinion of the value for the subject property. Our research revealed several properties to compare to the subject.
The analysis that follows relies on a detailed discussion of specific strengths and weaknesses observed among the data items, with individual adjustments applied in the form of an adjustment matrix.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 61
Subsequent to the presentation of data, further comments relating to our analysis and valuation are provided.
The initial stages of the appraisal process include the investigation, organization, and analysis of relevant market data and other information that relates to t he value of the subject property. By searching public records and interviewing buyers, sellers, real estate agents, developers, and others, we have found data pertaining to sales of properties reasonably comparable to the subject property.
The analysis in the Sales Comparison Approach compares the subject property to other properties that have sold in the market area. The following sales were considered meaningful in providing an indication of value for the subject property. A map of the comparable sales and summary of the comparable sales are presented as well.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 62
COMPARABLE SALES MAP
N
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 63
ITEM SALE DATE ZONE CASH EQV. PRICE
DOCUMENT NO. SQUARE FEET PRICE PER SF
ASSESSOR'S PARCEL NUMBER SELLER ACRES PRICE PER UNIT
COMMENTS BUYER DWELLING UNITS UNITS PER ACRE
1 SEC 10th St W. & Ave. N-8 May 5, 2022 M4 80,000$
Palmdale, CA 93551 Not Available 49,658 1.61$
3005-002-086 Oscar Torres Canas 1.14 -$
Los Angeles County Not Available 0 0.00
2 NEC China Lake Blvd./French Ave. March 18, 2022 CG 60,000$ Ridgecrest, CA 93555 42977 32,021 1.87$
396-060-14-00-5 Indian Wells Valley Water District 0.74 -$ Kern County R & L Capital, Inc. 0 0.00
3 S/L Two-Mile Rd. E. of Adobe Rd. March 14, 2022 C2 12,000$ Twentynine Palms, CA 92277 Not Available 5,998 2.00$
0623-121-15 Wade Vincent Kirk 0.14 -$
San Bernardino County Not Available 0 0.00
4 NEC Central Rd/Ottawa Rd. January 14, 2022 R3 165,000$ Apple Valley, CA 92308 19598 93,218 1.77$
0439-051-01 Hausman Trust 2.14 -$
San Bernardino County Talwar 0 0.00
5 N/L Lorene Dr.at St. Andrews Dr. August 20, 2021 C2 95,000$ Victorville, CA 92395 376636 50,965 1.86$
0396-183-03 McPhetridge Trust 1.17 -$
San Bernardino County HDL Capital QOZB, LLC 0 0.00
6 SEC Hesperia Rd./Ottawa Rd. April 27, 2021 C2 265,000$ Victorville, CA 92395 194655 186,001 1.42$
3090-421-03 Tanner 4.27 -$
San Bernardino County Qotami 0 0.00
SUMMARY OF EFFECTIVELY VACANT LAND SALES
STREET ADDRESS
CITY STATE ZIP
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 64
Aerial Maps of Comparable Sales
Sale Number One
Sale Number Two
Sale Number Three
Sale Number Four
Sale Number Five
Sale Number Six
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 65
DISCUSSION OF SALE COMPARABLES-LAND VALUATION
This analysis identifies the similarities and differences between subject and comparable properties. The primary elements of comparison include property rights, financing terms, conditions of sale (motivation), market conditions (sale date), and physical characteristics (e.g. zoning, utilities, site improvements, location, access, etc.). The common quantitative adjustment process involves paired sales analysis that compares two or more market sales to derive an indication of the adjustment for a single characteristic and applies it to the applicable data. Recognizing the weaknesses inherent in a quantitative analysis, a qualitative technique can be used. The adjustments applied are not necessarily representative of paired- data analysis and are not intended to be viewed in a precise or absolute context. Rather, they are intended to offer general insight with regard to the order of magnitude afforded each of the adjustment categories, as determined by the appraiser by virtue of our investigations into the subject marketplace.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 66
Market Conditions (Time)
CoStar market trends from the graph below and research with other sources suggest that values have increased recently. The overall rate of increase is estimated at 3% per year. Therefore, a time adjustment is required for the comparable sales occurring over 6 months ago.
On the subsequent pages are a discussion and an opinion of value for the subject property.
Generally, quantitative adjustments consist of making either percentage or dollar adjustments to account for the differences between the subject and the comparable sales. Qualitative adjustments require the appraiser to rank the comparable sales in terms of inferiority/superiority to the subject. In this appraisal, we utilize qualitative analysis.
GENERAL LOCATION
The comparable sales are rated similar in location, compared to the subject. No adjustment is required.
SPECIFIC LOCATION
The comparable sales are adjusted as required, based upon location on a superior or inferior location, as compared to the subject.
SIZE
The comparable sales vary in size. The various sizes are adjusted as required to reflect market influence, compared to the subject.
SHAPE/UTILITY
The comparable sales have adequate frontage and depth for development and are all s imilar to the subject.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 67
ZONE/ENTITLEMENTS/DENSITY
The subject is zoned R-M, Multiple-Family Residential. The comparable sales have similar land use and/or development density as compared to the subject or are adjusted accordingly. The client has requested a Fair Market Value as Park/Open Space . The land is valued with a deed restriction limiting the use as park or open space, with the agreement that bus drivers may use the restroom faci lities in the future park in perpetuity. The land sales utilized for Fair Market Value as Park/Open Space valuation are either strictly open space land or land with limited development potential, due to location, shape, topography, access, utility or other factors.
ACCESS
All of the comparable sales are located on public roads with good access. The subject property is accessed via a public street.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 68
Discussion of Data Items
Comparable 1 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Harvey Holloway of Coldwell Banker Commercial Valley Realty. All factors considered; the subject unit value is estimated above this indicated value at $1.61 per square foot of land.
Comparable 2 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Hank Eberhart of Coldwell Banker Best Realty. All factors considered; the subject unit value is estimated below this indicated value at $1.86 per square foot of land.
Comparable 3 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated superior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Scot Curry of Curry Realtors. All factors considered; the subject unit value is estimated below this indicated value at $1.80 per square foot of land.
Comparable 4 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning/entitlements/density is rated similar to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Leeroy Hausman , who represented himself as the seller. All factors considered; the subject unit value is estimated above this indicated value at $1.82 per square foot of land.
Comparable 5 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Joseph Brady of The Bradco Companies. All factors considered; the subject unit value is estimated above this indicated value at $1.88 per square foot of land.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 69
Comparable 6 The general location is similar. The specific location is similar to the subject. The shape/utility of the site is similar to the subject. The topography is similar to the subject. The comparable has legal access and is rated similar to the subject. The lot size is rated inferior to the subject (economies of scale). The zoning /entitlements/density is rated superior to the subject. The visibility and infrastructure improvements (paved road access) are similar to the subject. The broker was Joseph Brady of The Bradco Companies. All factors considered; the subject unit value is estimated above this indicated value at $1.48 per square foot of land.
SUBJECT One Two Three Four Five Six
Sale Price N/A $80,000 $60,000 $12,000 $165,000 $95,000 $265,000 Land Size Acres 0.45 1.14 0.74 0.14 2.14 1.17 4.27
Land Size Square Feet 19,611 49,658 32,021 5,998 93,218 50,965 186,001 $ per SF N/A $1.61 $1.87 $2.00 $1.77 $1.86 $1.42
Rights Conveyed Fee Simple 0% 0% 0% 0% 0% 0%
Adjusted $ psf N/A $1.61 $1.87 $2.00 $1.77 $1.86 $1.42
Financing Terms Conventional 0% 0% 0% 0% 0% 0%
Condition of Sale Conventional 0% 0% 0% 0% 0% 0%
Adjusted $ psf N/A $1.61 $1.87 $2.00 $1.77 $1.86 $1.42
Date May-22 0.0% 0.0% 0.0% 0.0% 1.0% 2.0%
Adjusted $ psf N/A $1.61 $1.87 $2.00 $1.77 $1.88 $1.45
General Location Pico Rivera
Specific Location
Pico Rivera
5055 Passons Blvd.
Site Size 19,611 2% 1% -8% 3% 2% 4%
Topography Generally Level
Shape/Utility Rectangular/Good
Zone/Entilements/ Density
Assume Open Space
or Park Only
No Entitlements -2% -2% -2% -2% -2%
Extraordinary Development Cost No
Access Good
Visibility/Street Frontage
SWC Passons Blvd. &
Jackson Street
Subtotal of Adjustments 0% -1% -10% 3% 0% 2%
FINAL INDICATORS $1.61 $1.86 $1.80 $1.82 $1.88 $1.48
ADJUSTMENT OF COMPARABLE LAND DATA
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 70
LAND VALUE CONCLUSION
The client has requested a Fair Mar ket Value as Park/Open Space . The land is valued with a deed restriction limiting the use as park or open space, with the agreement that bus drivers may use the restroom faci lities in the future park in perpetuity. The land sale s utilized for Fair Mar ket Value as Park/Open Space valuation are either strictly open space land or land with limite d development potential, due to location, shape, topography, access, utility or other factors.
The subject does not currently have development entitlements. All of the comparables are given equal weight in the analysis. The sale comparables indicate a n adjusted range for the subject from $ 1.48 to $1.88 per square foot, as shown on the following table.
The median for the sales is $1.81 per square foot and the average is $1.74 per square foot. The comparable sales are all within a reasonable range. Below, in the Array, are the comparables considered to be most indicative for the value of the subject.
The subject parcel is value is considered to be toward the middle of the range of Comparable Sales approximately $1.80 per square foot. The appraisers reconciled the preceding value range. A unit value of $1.80 per square foot is appropriate for the subject property.
LAND VALUE CONCLUSION BY THE SALES COMPARISON APPROACH
Fair Market Value as Park/Open Space
Based on the analysis above, we conclude to a unit value of $1.80 per square foot for the subject site.
Using this unit value, it is our opinion that the Fair Market Value of the subject property according to the Sales Comparison Approach, prior to consideration of changes in market conditions due to the impacts of COVID-19, which will be separately addressed below, is as follows:
Sale Number Overall Comparison Adjusted $/SF
5 Superior $1.88
2 Superior $1.86
4 Superior $1.82
SUBJECT
3 Similar $1.80
1 Inferior $1.61
6 Inferior $1.48
LAND VALUE ARRAY
Property Type Site Size (sf) x Unit Value = Market Value Rounded Land 19,611 x 1.80$ = 35,300$ 40,000$
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 71
COVID-19 Market Impacts
As discussed previously, the current/ongoing Covid -19 global pandemic is having reported impact on financing rates/lender spreads, lowered loan -to-value (LTV) ratios, landlord and tenant cash flows, etc. Given the rapidity of events related to the pandemic that have affected real estate sales, the present risks (as of the effective date of value) appear to be financing related and broad uncertainty in global/national/local economics in the near term. This being the case, research regarding price/value discounting for the subject is prudent. Comparables investigated show an upward trend.
Based on the comparable sales trends, published information on the virus impacts available to us and our discussions with market participants, it is considered that there is no risk discount for the subject that is warranted at this time.
CONCLUSION to Impact of COVID-19 on Subject Property Valuation There does not appear to be an adverse economic impact on the subject, b ased on research of market studies such as the ones cited above . We conclude that No COVID adjustment for market conditions in the Fair Market Value reported is warranted.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 72
VALUE RECAPITULATION
Fair Market Value as Park/Open Space
Our valuation analyses presented in this appraisal report concluded to the following opinions:
Valuation Approach Value Conclusion
Cost Approach Not Applicable
Sales Comparison Approach $40,000
Income Capitalization Approach Not Applicable
The Cost Approach is considered to be a strong indicator of value in recently constructed buildings, particularly when current construction costs are available and there is recent comparable land sale data that would lead to an accurate estimate of the underlying site value. This approach is weakened, however, as a building grows older because of the difficulty in accurately measuring physical depreciation. The Cost Approach can serve as a check for the other two approaches in order to assure the reasonableness of the Sales Comparison and Income Capitalization Approaches.
The Cost Approach is not applicable to this assignment for the following reason:
• The subject property is vacant land. The Sales Comparison Approach is the valuation method utilized by market participants.
The Sales Comparison Approach can be a strong indicator of value when there is an adequate number of comparable property sales that are similar to the subject in physical, functional, economic and location characteristics. This approach is weakened when t he quantity or nature of available market data is insufficient for purposes of direct comparison.
We gave primary consideration to the Sales Comparison Approach because generally vacant open land similar to the subject property are purchased by owner-users or developers using this approach.
The Income Capitalization Approach considers the future expectations of investors for properties such as the subject. It considers current market rental activity and rate -of-return requirements through the selection of a market-derived overall capitalization rate. This approach is most relevant when there are sufficient rental comparables from which to draw market rent conclusions and adequate market data from which to determine market cap rate requirements.
The Income Approach is not considered because the subject is not purchased for its income potential.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 73
CONCLUSION-Fair Market Value as Park/Open Space
Our research indicates that the Sales Comparison Approach should be given the greatest consideration in our final determination of value.
As a result of our investigation and analysis, it is our opinion that the Fair Market Value of proposed fee simple acquisition and temporary construction easement acquisitions of the subject property, as of the effective date of valuation, is:
Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Fair Market Value Fee Simple 5/22/2022 $40,000
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 74
MARKETING/EXPOSURE TIME ESTIMATION
Exposure Time3
“The estimated length of time the property interest being appraised would have to have been offered on the market prior to the hypothetical consummation of a sale at “As Is” Market Value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. Exposure time is always presumed to occur prior to the effective date of the appraisal.”4
We obtained information from our research as well as comparable sales data about the most probable exposure time required to sell the subject property.
Based on the analysis above, we concluded that the property would have required approximately 6 to 12 months to have properly marketed and attracted a buyer. Assuming that any sale of the subject property would be based on terms of sale prevalent in the subject market, as well as a realistic list price that was sensitive to existing market conditions, we conclude that a reasonable exposure time assumption for the subject property is 6 to 12 months.
3 The analysis of Exposure Time and Marketing Time assumes, and is based on, standard escrow periods for the type of property being appraised.
4 The Dictionary of Real Estate Appraisal, Third Edition, pages 126, 127.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 75
CERTIFICATION
We certify that to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct.
The report analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
We have no present or prospective interest in the property that is the subjec t of this report, and we have no personal interest or bias with respect to the parties involved.
We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
Our 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.
Our analyses, opinions, and conclusions were developed, and this report ha s been prepared in accordance with the standards and reporting requirements of the Uniform Standards of Professional Appraisal Practice and in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute.
As of the date of this report, David M. Rosenthal ha s completed the requirements of continuing education for Designated Members of the Appraisal Institute.
As of the date of this report, Randall Blaesi has completed the Standar ds and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute. As of the date of this report, Randall Blaesi has completed the continuing education program for Practicing Affiliates of the Appraisal Institute.
Randall Blaesi has made an inspection of the property that is the subject of this report. David M.
Rosenthal has not made an inspection of the property that is the subject of this report.
Randall Blaesi has performed the selection of comparable properties, collection an d verification of data and analysis. David M. Rosenthal has reviewed and concurs with the final selection of comparable properties and the final analysis and conclusion of value.
No other persons have provided significant professional assistance.
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 76
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
This appraisal assignment was not based on a requested minimum value, a specific valuation, or the approval of a loan.
We have performed no services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the three -year period immediately preceding acceptance of this assignment.
Respectfully submitted,
CURTIS-ROSENTHAL, INC.
Randall Blaesi, ASA, SR/WA, MRICS David M. Rosenthal, MAI, FRICS CA #AG008581 CA #AG001641
APPRAISAL REPORT: 5055 Passons Blvd., Pico Rivera, CA 90660 Page 77
ADDENDA
Definitions
General Assumptions and Limiting Conditions
Qualifications of the Appraisers
Partial Client List
Preliminary Title Report
DEFINITIONS
Appraisal – “the act or process of developing an opinion of value.” (USPAP, 2020-2021 ed.)
“As Is” Market Value – “The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.”
Extraordinary Assumption – “An assignment specific assumption as of the effective date, directly related to a specific assignment, 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.” (USPAP, 2020-2021 ed.)
Permanent Easement
Although the fee owner may retain the right to use the land encumbered by the permanent easement, this use may not interfere in any manner with the easement owner’s use of the property for the purposes specified in the written easement. Thus, a fee owner’s interest in the easement area is subservient to the interest of the easement owner. (source: Real Estate Valuation in Litigation, Appraisal Institute)
Condemnation
The Dictionary of Real Estate Appraisal, 5th Edition, defines condemnation as follows:
The act or process of enforcing the right of eminent domain.
Eminent Domain
The Dictionary of Real Estate Appraisal, 5th Edition, defines eminent domain as follows:
The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as “the takings clause,” guarantees payment of just compensation upon appropriation of private property.
Just Compensation
The Dictionary of Real Estate Appraisal, 5th Edition, defines just compensation as follows:
In condemnation, the amount of loss for which a property owner is compensated when his or her property is taken; should put the owner in as good a position pecuniary as he or she would be if the pr operty had not been taken; generally held to be market value, but courts have refused to rule that it is always equivalent to market value.
Partial Taking
The Dictionary of Real Estate Appraisal, 5th Edition, defines partial taking as follows:
The taking of part of any real property interest for public use under the power of eminent domain; requires the payment of compensation.
Larger Parcel
The Dictionary of Real Estate Appraisal, 5th Edition, defines a larger parcel as follows:
In condemnation, that tract or tracts of land which 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.
Remainder
The Dictionary of Real Estate Appraisal, 5th Edition, defines a remainder as follows:
In eminent domain condemnation, the property remaining in possession of the owner after a partial taking.
Fee Simple Estate – “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
Ground Lease – “A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term.”
Hypothetical Condition – “A condition, directly related to a specific assignment, contrary to what is known by the appraiser to exist on t he effective date of the assignment results, but is used for the purpose of analysis.” (USPAP, 2020-2021 ed.)
Fee Simple Estate – “The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.”
Leasehold Estate – “The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.”
Market Rent - "The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including the renta l adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs)."
Fair Market Value Definition-California Code of Civil Procedure §1263.320.
(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.
California Code of Civil Procedure §1263.330
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.
Article 5. Compensation for Injury to Remainder
1263.410-Mandatory Compensation; Amount
(a) Where the property acquired is part of a larger parcel, in addition to the compensation awarded pursuant to Article 4 (commencing with Section 1263.310) for the part taken, compensation shall be awarded for the injury, if any, to the remainder.
(b) Compensation for injury to the remainder is the amount of the damage to the remainder reduced by the amount of the benefit to the remainder. If the amount of the benefit to the remainder equals or exceeds the amount of the damage to the remainder, no compensation shall be awarded under this article. If the amount of the benefit to the remainder exceeds the amount of d amage to the remainder, such excess shall be deducted from the compensation provided in Section 1263.510, if any, but shall not be deducted from the compensation required to be awarded for the property taken or from the other compensation required by this chapter. 1263.420. 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 the damage is caused by a portion of the project located on the part taken. 1263.430. Benefit to the remainder is the benefit, if any, caused by the construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether the benefit is caused by a portion of the project located on the part taken.
Market Value - “The following definition of Market Value is used by agencies that regulate federally insured financial institutions in the United States:
The most probable price that a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in what they consider their best interests;
• A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”
(12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994)
Prospective Opinion of Value – “A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection wi th projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy.”
Retrospective Value Opinion – “A value opinion effective as of a specified dat e. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgements, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate.”
Sandwich Leasehold Estate – “The interest held by the sandwich leaseholder when the property is subleased to another party; a type of leasehold estate.”
Stabilized Occupancy – “The occupancy of a property that would be expected at a particular point in time, considering its relative competitive strength and supply and demand conditions at the time, and presuming it is price at market rent and has had reasonable market exposure. A property is at stabilized occupancy when it is capturing it appropriate share of market demand. An expression of the average or typical expected occupancy that would be expected for a property over a specified projecti on period or over its economic life.”
Fee Simple Estate – “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
Fee Simple Estate – “A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease).”
Market Rent - "The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs)."
As Is Market Value – “The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.”
Prospective Opinion of Value – “A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date.
An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conver sion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy.”
Liquidation Value is defined in The Dictionary of Real Estate Appraisal, 3rd edition, as follows:
“The most probable price which a specified interest in real property is likely to bring under all of the following conditions:
a. Consummation of a sale will occur within a severely limited future marketing period specified by the client.
b. Actual marketing conditions are those currently obt aining for the property interest appraised.
c. The buyer is acting prudently and knowledgably.
d. The seller is under extreme compulsion to sell.
e. The buyer is typically motivated.
f. The buyer is acting in what he or she considers his or her best interests.
g. A limited marketing effort and time will be allowed for the completion of a sale.
h. Payment must be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto.
i. The price represents the normal consideration for the property sold, unaffected by special or creative financing sales concessions granted by anyone associated with the sale.”
This definition can be modified to provide for valuation with specific financing terms.
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report has been made with the following general assumptions:
1) No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.
2) The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated.
3) Responsible ownership and competent property management are assumed.
4) The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
5) All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.
6) It is assumed that there are no hidden or apparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.
7) It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report.
8) It is assumed that there is compliance with all applicable zoning and use reg ulations and restrictions, unless nonconformity has been stated, defined, and considered in the appraisal report.
9) It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any loca l, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.
10) It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.
This appraisal report has been made with the following general limiting conditions:
1) The distributio n, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
2) Possession of this report, or a copy thereof, does not carry with it the right of publication.
3) The appraisers, by reason of this appraisal, are not required to give further consultation, testimony, or be in attendance in court with reference to the property in question, unless arrangements have been previously made.
4) Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser.
5) Any value estimates provided in the report apply to the entire property, and any pro -ration or division of the total into fractional interests will invalidate the value estimate, unless such pro - ration or division of interests has been set forth in the report.
6) The appraisers assume that the reader or user of this report has been provided w ith copies of available building plans and all leases and amendments, if any, encumbering the property.
7) No survey was furnished so the appraisers relied on the assessor’s plat map to ascertain the physical dimensions and acreage of the subject property. Should a survey prove these characteristics inaccurate, it may be necessary for this appraisal to be adjusted.
8) The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short -term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions.
9) Complete building plans and specifications were not available for use in the preparation of this appraisal. The analysis, therefore, is subject to review of the final plans and specifications when available.
10) Since earthquakes are not uncommon in the area, no responsibility is assumed due to their possible effect on individual properties, unless detailed geologic reports are made available.
11) No termite inspection report was available. The appraisers personally inspected the subject property and found no significant evidence of termite damage or infestation. No guarantee that none exists, however, should be construed.
12) No consideration has been given in this appraisal as to the value of the property considered by the appraisers to be personal, located on the premises, or the cost of moving/relocating such personal property. Only the real estate has been considered.
13) In thi s appraisal assignment, the existence of potentially hazardous materials used in the construction or maintenance of the building, such as the presence of asbestos or urea formaldehyde foam insulation, and/or the existence of toxic waste, which may or may n ot be present on the property, has not been considered. The appraisers not qualified to detect such substances. We urge the client to retain an expert in the field, if desired.
14) Unless otherwise stated, no responsibility is assumed for any damages sustai ned in connection with actual or potential deficiencies or hazards such as, but not limited to, inadequacies or defects in the structure, design, mechanical equipment or utility services associated with the improvements, air or water pollution, lead paint, noise, flooding, storms or wind, traffic and other neighborhood hazards, radon gas, asbestos, natural or artificial radiation, or hazardous materials or toxic substances of any description, whether on or off the property appraised. The appraisers are not qualified to detect hazardous waste or materials on, in or under the land or the improvements. Such a determination requires the investigation of a qualified expert in hazardous materials and assessment. In this appraisal assignment, the existence of po tentially hazardous material used in the construction or maintenance of the building, such as the presence of asbestos or urea formaldehyde foam insulation, and/or existence of toxic waste, which may or may not be present on the property, has not been considered. The appraisers are not qualified to detect such substances. We urge the client to retain an expert in this field, if desired.
15) The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the subject property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. Since compliance matches each owner’s financial ability with the cost -to-cure the property’s potential physical characteris tics, the real estate appraiser cannot comment on compliance with ADA. A brief summary of the subject’s physical aspects is included in this report. It in no way suggests ADA compliance by the current owner. Given that compliance can change with each ow ner’s financial ability to cure non - accessibility, the value of the subject does not consider possible non -compliance. Specific study of both the owner’s financial ability and the cost-to cure any deficiencies would be needed for the Department of Justice to determine compliance.
16) The appraisers made no engineering survey of the subject property. Except as specifically stated, data relative to size and area has been taken from sources considered reliable, but no guarantee of accuracy is expressed or implied. Interested parties should retain a surveyor or other qualified professional for exact measurements of the subject property.
17) No recent historical operating statements for the subject property were provided for our review.
Therefore, for the purposes o f this analysis, the projected operating expenses for the subject property are based on the expense characteristics of properties similar to the subject property. We assume that the expenses estimated in our Pro Forma operating expense statement are representative of actual expenses that the subject will incur. If any future data reveals that our operating expense estimates differ greatly from the actual operating expenses for the subject, then we reserve the right to revise our analyses and conclusions.
Appraiser Qualifications
Professional Qualifications of RANDALL H. BLAESI, ASA, MRICS
PROFESSIONAL DESIGNATIONS
American Society of Appraisers
ASA Member, Accredited Senior Appraiser – Real Property (ASA No. 2912) The Royal Institution of Chartered Surveyors
Professional Member (MRICS No. 6559992)
Appraisal Institute
Practicing Affiliate, Appraisal Institute (Member No.111508) Member of the Leadership Development & Advisory Council International Right of Way Association
International Right of Way Association, SR/WA
(Professional Member No. 2720356)
State of California, Office of Real Estate Appraisers
Certified General Real Estate Appraiser (No. AG008581)
EDUCATION
Law School, 1974
First Year Law School, Mc George School of Law, University of the Pacific, Sacramento, California
Courses: Contracts, Torts, Criminal Law and Agency
Bachelor of Arts Degree, 1971
Santa Clara University, Santa Clara, California
Major in Economics
EXPERIENCE
CURTIS - ROSENTHAL, Inc., 2014 to present – Senior Appraiser and Litigation Consultant. Curtis – Rosenthal, Inc., is a regional commercial real estate appraisal and consulting firm. Perform field appraisals and re view appraisals for: Commercial Mortgage Lenders (Banks, Life Insurance Companies, CMBS, Pension Funds), Public Agencies (City Governments, Transit Agencies), Law Firms (Real Estate Litigation, Estate and Trust, Eminent Domain, Inverse Condemnation), Corpo rations (Valuation for Financial Reporting), and Accounting Firms.
Properties appraised include: retail, office, Multiple-Family Residential, apartments, condominiums, mixed-use, special purpose, and vacant land. Areas of experience include southern and northern California, Arizona and Nevada.
Professional Qualifications of RANDALL H. BLAESI, ASA, MRICS
Mr. Blaesi was formerly Commercial Division Manager for the Los Angeles Office of The Property Sciences Group, Inc. Prior to that position, he was a Vice President and Senior Appraiser associated with Grubb & Ellis Landauer, LLC. Prior to that, he was a Senior Consultant in the Los Angeles office of Valuation & Information Group. Mr. Blaesi previously was a Senior Appraiser with Integra Realty Resources, Los Angeles and was a Senior Appraiser in the Pasadena office of First American Commercial Real Estate Services.
He was an independent fee appraiser with offices in Sacramento and San Diego, California from 1991- 2006. Appraisal and Valuation Consulting serv ices regarding various types of real property including commercial, Multiple-Family Residential, residential, agricultural, recreational, special purpose, easements, eminent domain, partial and full acquisition, environmental mitigation land, construction defect, fire, flood and earthquake damaged properties. Expert witness testimony in civil litigation, bankruptcy and tax court proceedings. Appraisal review and management. Business Valuation. Arbitration and mediation. Prior to that, he was a Real Estate Appraiser and Valuation Consultant with Frank Blaesi, MAI, SREA, SR/WA from 1972- 1991. Appraisal and Valuation Consulting services regarding various types of real property including commercial, Multiple-Family Residential, residential, agricultural, recreational, special purpose, easements, eminent domain, partial and full acquisition, environmental mitigation land, construction defect, fire and flood damaged properties. Expert witness testimony in civil litigation proceedings. Arbitration and mediation.
EXPERT WITNESS
Accepted as an expert witness in the following courts:
Federal Bankruptcy Court - California Northern and Southern Districts.
Superior Court - Los Angeles, San Diego, Sacramento, Stanislaus, San Joaquin, Placer and Nevada Counties, California
United States Tax Court, San Francisco, California.
Accepted as an expert witness in the following venues:
County Assessment Boards of Appeal – Los Angeles, Sacramento and San Diego Counties, California. Arbitration and mediation.
INSTRUCTOR
California State University, Sacramento, 1985, Introduction to Real Estate Appraisal - Guest Lecturer
PROFESSIONAL AFFILIATIONS
Society of Real Estate Appraisers, 1972-1991 (merged with the Appraisal Institute in 1991) Appraisal Institute, 1991-present
American Society of Appraisers, 1982-present
International Right of Way Association, 1972-present
The Royal Institution of Chartered Surveyors, 2015-present
SPEAKING ENGAGEMENTS
Society of Real Estate Appraisers
Appraisal Institute
International Right of Way Association
American Society of Appraisers
Current Appraiser License
Professional Qualifications of DAVID M. ROSENTHAL, MAI, FRICS
PROFESSIONAL DESIGNATIONS
Appraisal Institute
MAI Member, Appraisal Institute (MAI #8024)
Member of the Regional Ethics & Counseling Panel, 1994-1997, 2000-2003
Royal Institution of Chartered Surveyors
Fellow of the Royal Institution of Chartered Surveyors, (FRICS #1291058) State of California, Bureau of Real Estate Appraisers
Certified General Real Estate Appraiser (#AG001641)
EDUCATION
Master of Management Degree (MBA), 1980
J.L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois - Concentrations in Finance and Accounting
Bachelor of Science Degree, 1978
University of Florida, Gainesville, Florida
Major in Business Administration - concentration in Finance
EXPERIENCE
CURTIS - ROSENTHAL, Inc., 1983 to present – President & CEO Founding principal of regional commercial real estate appraisal and consulting firm.
Perform field appraisals and review appraisals for: Commercial Mortgage Lenders (Banks, Life Insurance Companies, CMBS, Pension Funds), Public Agencies (City Governments, Transit Agencies), Law Firms (Real Estate Litigation, Estate and Trust, Lease Negotiation), Corporations (Valuation for Financial Reporting), and Accounting Firms. Properties appraised include: retail, office, industrial, apartments, condominiums, mixed-use, special purpose, and vacant land. Areas of experience include southern and northern California, Arizona and Nevada.
Security Pacific National Bank, 1981-1982 - Corporate Loan Officer Responsible for portfolio of loans consisting primarily of real estate companies. Projects financed included construction and renovation of income properties and development of new residential tracts.
EXPERT WITNESS
Accepted as an expert witness in the following courts:
Federal Bankruptcy Court - California Central District
Superior Court - Los Angeles County and Orange County
Municipal Court - Orange County
INSTRUCTOR
Loyola Marymount University, 1987 - 2016
College of Business Administration, Finance Department - Guest Instructor
Federal Reserve Bank of San Francisco, 2015
Risk Connection 2015, Risks with Construction Development Lending-Guest Trainer
University of California at Los Angeles, 1988
UCLA Extension, Financial Institutions Management Program - Guest Instructor
Professional Qualifications of DAVID M. ROSENTHAL, MAI, FRICS (Cont’d)
PROFESSIONAL AFFILIATIONS
Appraisal Institute, 1989-present
Strategic Planning Committee, Chairman 2014
IRS Valuation Summit, Los Angeles, Conference Co-Chair 2013; Washington D.C., Planning Committee 2014 California Bankers Association, Affiliate Member 2009-present California Mortgage Bankers Association (CMBA), Affiliate Member, 2001-2014, 2017, 2018 Planning Committee for Commercial Real Estate Finance Conference, 2003–2014 Entrepreneurs Organization (EO, formerly YEO/WEO), 1997 to 2007 International Council of Shopping Centers (ICSC), 2011, 2017 Los Angeles Economic Development Corporation, 2004
Los Angeles Estate Planning Council (LAEPC), 2009-present; Program Chair 2009-2010 Los Angeles Mortgage Association (LAMA), Co-Founder, Co-Chair 2000–present Royal Institution of Chartered Surveyors, 2010-present
Society of Chief Appraisers (SCA), Planning Committee, 2009-present Southern California Real Estate Alliance (SCREA), 1987-present; Co-Chair 1995-1996, 2003 Western Independent Bankers, Affiliate Member 2009-2011
SPEAKING ENGAGEMENTS
Appraisal Institute
IRS Valuation Summit, Conference Co-Chair 2013; Moderator-Partial Interest Valuation Panel 2013, 2014 Western Regional Conference, 1996-1999
SF Bay Area Fall Conference, 1998
California Bankers Association, Chief Credit Officers Symposium, 2008-2010 California Bar Association, Real Property Law Section, 2011 California Mortgage Bankers Association, Commercial Real Estate Finance Conference, 2003-2009, 2014 California CPA Education Foundation, 1998
CREFC Capital Markets Conference, 2014
Crittenden National Conference, 2009
ICSC/LAMA Capital Markets Conference, 2011-2012
IMN Troubled Assets Conference, 2010
Institute of Management Accountants, 1997
International Right of Way Association, IRWA/AI Joint Conference, 2002, 2008 Los Angeles Estate Planning Council, 2009
National Council of Real Estate Investment Fiduciaries (NCREIF), National Conference, 2005 Society of Chief Appraisers 2009-2015
Special Assets Management Association, 2010-2012
Western Independent Bankers, Troubled Asset Forum, 2009, 2011
PUBLICATIONS
California Mortgage Bankers Association Legal News
Valuation Clauses in Leases, Ground Leases and Purchase Options, September 2011 California Mortgage Finance News
Silicon Beach, The New Frontier, September 2015
Life Company Risk-Based Capital for Commercial Mortgages, September 2013 Understanding the New Interagency Appraisal and Evaluation Guidelines, May 2011 California Real Estate Journal
Telling the Story – A Solutions Approach to Appraisal, September 2003 Real Estate News Television (RENTV.com)
Economic Update, Regular Column 2002 to 2015
Real Estate Southern California
What Happened to CMBS? September 2007
The ABC’s of CDO’s, September 2006
The CMBS Market Comes of Age, March 2006
Real Estate Cycles – A Long Term Perspective, September 2005 Western Independent Bankers – Lending and Credit Digest Evaluations in Compliance with the Interagency Appraisal and Evaluation Guidelines, June 2012 Assessing Collateral Values, October 2010
Commercial Bank Appraisal Administration, July 2010
Current Appraiser License
Partial List of Clients Served
COMMERCIAL BANKS
American Continental Bank
Americas United Bank
Bank of America
Bank of Manhattan
Bank of Hemet
Bank of the Ozarks
Bank of Santa Clarita
Bank of the West
Bank One Arizona
BofI Federal Bank
Borel Private Bank & Trust Co.
Boston Private Bank & Trust Co.
Builders Bank
California Business Bank
Capital One Bank
Cathay Bank
Centennial Bank
Citigroup
Citizens Business Bank
City National Bank
City State Bank
Coast National Bank
Community Bank
CTBC Bank
Eastern International Bank
East West Bank
EverTrust Bank
Far East National Bank
Farmers and Merchants Bank
FDIC
First Commerce Bank
First Foundation Bank
First General Bank
First National Bank of Northern California
First National Bank of Southern California
First Republic Bank
Grandpoint Bank
Greater Bay Bancorp
Habib American Bank
Hanmi Bank
Heritage Oaks Bank
Independence Bank
JP Morgan Chase Bank
Key Bank
Korea Exchange Bank
La Jolla Bank
Luther Burbank Savings Bank
Macquarie Bank
Marshall & Isley Bank
Mellon First Business Bank
Mercantile National Bank
MidFirst Bank
Mission Bank
Mission Valley Bank
NARA Bank
National Bank of California
Northern Trust Bank
Pacific Alliance Bank
Pacific Capital Bancorp
Pacific City Bank
Pacific Commerce Bank
Pacific Mercantile Bank
Pacific Premier Bank
Pacific Western Bank
Philippine National Bank
Popular Community Bank
Preferred Bank
Premier Business Bank
Premier Commercial Bank
Provident Bank
Provident Savings Bank
Rabobank
Regents Bank
Royal Business Bank
Saehan Bank
Security Bank of California
Silvergate Bank
Sunwest Bank
The Private Bank of California
United Business Bank
Universal Bank
US Bancorp
US Metro Bank
Vibra Bank
Wells Fargo Bank
Wilshire Bank
Zions Bank
CREDIT UNIONS
Altura Credit Union
American First Credit Union
California Coast Credit Union
California Credit Union
Extensia Financial
Kinecta Federal Credit Union
LA Fireman’s Credit Union
Mission Federal Credit Union
NuVision Credit Union
Orange County’s Credit Union
Premier America Credit Union
Southland Credit Union
Partial List of Clients Served (cont’d)
INSURANCE COMPANIES
AEGON USA
Allianz Life Insurance Company
Allstate Investments, LLC
American Equity Investment Life Insurance Co.
American National Insurance Company
American United Life Insurance Company
Assurant Inc.
Chubb Group of Insurance Companies
Columbian Mutual Life Insurance Company
Genworth Financial
Golden State Mutual Life
Great West Life Insurance Company
Hartford Insurance Company
Home Life Insurance Company
IDS Life Insurance Company
ING Life Insurance Company
John Hancock Real Estate Finance
Kansas City Life Insurance Company
Lafayette Life Insurance Company
Lincoln National Life Insurance Company
MetLife Capital Financial Corporation
Nationwide Insurance Company
Principal Global Investors
Protective Life Insurance Company
Prudential Mortgage Capital
Riversource
Southern Farm Bureau Life Insurance
Stancorp Mortgage Investors, LLC
State Farm Insurance Company
Sun Life Insurance Company
SunAmerica Insurance Company
Symetra Financial
Thrivent Financial for Lutherans
Union Central Life Insurance Company
Union Labor Life Insurance Company
United Farm Family Life Insurance Company
United Olympic Life Insurance Company
United Security Insurance Company
MULTI-FAMILY LENDERS
ABN/AMRO Apartment Lending
Ameriprise Financial
Amerisphere Multi-Family Finance
Arbor National Mortgage
Beech Street Capital
Centerline Capital Group
CW Capital
Deutsche Bank Mortgage Capital
Mark One Capital, Inc.
PNC/ARCS Commercial Mortgage
Prudential Huntoon Paige
Walker & Dunlop
COMMERCIAL MORTGAGE BANKERS/ BROKERS
Alison Mortgage Company
Amherst Real Estate Capital
Balboa Financial
Barry S. Slatt Mortgage Company
Berkadia Commercial Mortgage
Bond Street Capital
Buchanan Street Partners
Burnham Capital Markets
Cohen Financial
George Elkins Mortgage Banking Company
George Smith Partners, Inc.
Grandbridge Real Estate Capital
Highland Realty Capital, Inc.
Holiday Fenoglio Fowler, LP
iCap Realty Advisors
Koss Financial Corporation
Love Funding Corporation
Marcus and Millichap Capital Corporation
Mason McDuffie Financial Corporation
Meridian Capital Group, Inc.
Newmark Realty Capital, Inc.
NorthMarq Capital, Inc.
Pacific Southwest Realty Services
Partners Realty Capital, LLC
Pathfinder Mortgage Corporation
Q10 National Mortgage Co.
Sunrise Mortgage & Investment Company
Terrix Financial Corporation
Walker and Dunlop
PENSION FUNDS / ADVISORS
Alcatel Lucent Asset Management Corp.
American Realty Advisors
CALPERS
California State Teachers Retirement System
Construction Laborers Pension Trust
Crosson Dannis, Inc.
Emerson International
Equitable Real Estate Investment Mgt., Inc.
Essex Property Trust
Guggenheim Trust Company, LLC
Heitman/JMB Institutional Realty Advisors
J.P. Morgan Investment Management
Olympic Realty Advisors
Principal Real Estate Investors
Standard Management Company
Partial List of Clients Served (cont’d)
CMBS SPECIAL SERVICERS
C-III Asset Management, LLC
Key Bank
LNR Partners, LLC
Midland Loan Services
Helios AMC, LLC
Berkadia Commercial Mortgage
TriMont Real Estate Advisors
CMBS LENDERS
Barclays Capital Real Estate, Inc.
Bridger Commercial Funding
CIBC World Markets Corp.
Credit Suisse
CW Capital
Deustchebanc Mortgage Capital
JP Morgan Mortgage Capital
Key Commercial Mortgage
Morgan Stanley
Natixis Real Estate Capital, Inc.
RBS Greenwich Capital
Redwood Trust
UBS Securities, LLC
CORPORATIONS
Alta Hospital System
ATT Wireless Services, Inc.
Best California Gas Co.
Bridgestone Retail Operations
Brotman Hospital
California Sports, Inc.
Chevron Oil Company
Getty Oil Company
IMAX Corporation
Los Angeles Orthopedic Hospital Foundation
Mercury Air Cargo, Inc.
Mobil Oil Corporation
Neiman-Marcus Group, Inc.
Pandemic Studios
Rite Aid Corporation
Safeway Corporation
Salvation Army
Santa Monica Home Owners Corporation
Thrifty Oil Company
Wal-Mart Stores, Inc.
Whirlpool Financial Corporation
PUBLIC AGENCIES
California Housing Finance Association
Carson Redevelopment Agency
City of Adelanto
City of Chino
City of Colusa
City of Gardena
City of Grand Terrace
City of Inglewood
City of Los Angeles
City of Montebello
City of Norco
City of Palos Verdes
City of Pasadena
City of Rialto
City of Riverside
City of San Louis Obispo, Housing Authority
City of San Mateo
City of Santa Monica
City of Vernon
City of Whittier
City of Yukaipa
Coachella Valley Mountains Conservancy
Compton Unified School District
Consulate General of Poland
County of San Mateo
Inglewood Redevelopment Agency
Inglewood Unified School District
Los Angeles Community College District
Los Angeles Housing Department
Los Angeles Unified School District
Los Angeles World Airports (LAWA)
Metropolitan Transit Authority (MTA)
Mountains Recreation & Conservation Authority
Newport Harbor Nautical Museum
Oakland Community Housing, Inc.
Philippine Consulate
Rosamond Community Services District
San Fernando Valley Economic Development Corp.
Santa Monica College
Santa Monica-Malibu Unified School District
Simi Valley Unified School District
The Port of Long Beach
The Port of Los Angeles
US General Services Administration
US Postal Service
Partial List of Clients Served (cont’d)
PARTIAL LIST OF CLIENTS SERVED 1 of 4
ATTORNEYS
Akin Gump Strauss Hauer & Feld, LLP
Allen Matkins Leck Gamble Mallory & Natsis
Arter & Hadden
Barnes & Thornburg LLP
Bird Marella
Booth, Mitchel & Strange, LLP
Brownstein, Hyatt, Farber, Schreck, LLP
Bryan Cave
Burhenn & Gest, LLP
Cadden & Fuller, LLP
Charlston, Revich, & Williams
Chrystie and Berle
Coudert Brothers, LLP
Cox, Castle, & Nicholson
DeCastrow, West, Chodorow, Glickfield & Nass
Engstrom, Lipscomb and Lack
Frandzel Robins Bloom & Csato, LC
Gianelli and Morris
Gibson, Dunn and Crutcher, LLP
Goodson and Wachtel
Greenberg, Glusker, Fields, Claman and Machtinger
Greenberg Traurig
Haight, Brown, & Bonesteel
Hoffman, Saban and Watenmaker
Holt Ney Zatcoff & Wasserman, LLP
Inman, Weisz, & Steinberg
Jeffer, Mangels, Butler, & Mitchell
K&L Gates, LLP
Kane, Ballmer & Berkman
Katten, Muchin, Zavis and Weitzman
King, Holmes, Paterno & Berliner, LLP
Levin & Seligman
Levinson & Lieberman
Loeb and Loeb
Luce, Forward, Hamilton & Scripps LLP
Manatt, Phelps & Phillips, LLP
Marlin and Saltzman
McDermott, Will & Emery
McGuire Woods
McNicholas & McNicholas, LLP
Mindlin and Tigerman
Mitchell, Silberberg, & Knupp, LLP
Morris, Polich and Purdy, LLP
Munger, Tolles, & Olson
Murchison & Cumming
Musick, Peeler & Garrett, LLP
Nixon Peabody, LLP
O’Melvany and Meyers
Orbach Huff Suarez & Henderson, LLP
Parker Milliken
Pillsbury, Madison, and Sutro
Pircher, Nichols, and Meeks
Resch Polster & Berger, LLP
Robinson, Diamant, & Brill
Rodi, Pollock, Pettker, Christian & Pramov
Rucker and Clarkson
Shapiro, Poesell, & Close
Shiotani & Inouye
Sidley and Austin
Smith and Hilbig
Thomashow, Brown and Paiallii, LLP
Tilem and Gole
Troy and Gould
Weinstock Manion
White & Case
Wolf, Rifkin, Shapiro & Shulman
Youngerman and McNutt, LLP
DEVELOPERS
Athena Group, LLC
California Landmark Development
Catellus Development Corporation
Champion Real Estate Services
CIM Group
Cloverfield Group
Combined Properties
Daiwa House Corporation
First City
Goldrich and Kest Industries
Haseko, Inc.
HB Drollinger Company
Held Properties, Inc.
Jamison Services, Inc.
Kennedy Wilson
Koar Development Group, LLC
O&S Holdings
Regency Centers
Roberts Companies
Soboroff Partners
Trammel Crowe
ITEM # 9
CITY OF MONTEBELLO
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Adrianna Kendricks, Director of Transportation
SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP NO. 23-8) FOR A COMPUTER-AIDED DISPATCH/AUTOMATIC VEHICLE
LOCATION SYSTEM
DATE: February 22, 2023
RECOMMENDATION(S):
It is recommended that the City Council:
1. Approve issuing a Computer-Aided Dispatch/Automatic Vehicle Location System Request for Proposal, No. 23-8 (RFP No. 23-8); and
2. Take such additional, related action that may be desirable.
FISCAL IMPACT:
There is no fiscal impact to issue RFP No. 23-8 for a Computer-Aided Dispatch/Automatic Vehicle Location (CAD/AVL) System (see Attachment A). Once a vendor is selected for award, the City Council will be asked to consider approving a Professional Services Agreement and amend the City of Montebello Department of Transportation’s (Transportation) Fiscal Year 2022-23 adopted budget. Funding for this project will be allocated primarily from Transportation’s FY 2022-23 adopted operating budget: Transit Operating Budget – Outside Contracts.
BACKGROUND/DISCUSSION:
The City of Montebello operates Montebello Bus Lines (MBL) to provide public transportation services to the City and neighboring communities. The City is soliciting competitive proposals from fully qualified and experienced vendors to replace MBL’s existing CAD/AVL System, provide additional functionality, and migrate existing data from the previous CAD/AVL System.
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
In 2011, the City entered into an agreement with Avail Technologies, Inc. (AVAIL), to provide MBL with a CAD/AVL System. Since that time, new and emerging technologies within the transportation industry have resulted in additional CAD/AVL options with more capabilities. These capabilities include the ability to explore demographic data within a municipal operator’s service area, make changes to routes through a seamless user interface, and route modeling capabilities.
In October 2019, the City Council approved a software maintenance agreement (Agreement No. 3697) with AVAIL for ongoing Maintenance and Support of MBL’s CAD/AVL System. Agreement No. 3897 was for an initial one-year term, with the option for renewal of up to four (4), one-year terms. Unfortunately, the agreement with AVAIL provides limited access to certain features within the platform, and limited importing features with MBL’s reporting software. These challenges prompted the request to issue RFP No. 23-8, which includes desired hardware infrastructure improvements for MBL’s fleet of revenue buses.
The City seeks a vendor that will design, develop, and deploy a turnkey CAD/AVL solution for MBL. RFP No. 23-8 was developed setting clear expectations and a detailed scope of work to ensure that the selected vendor will install a CAD/AVL System most advantageous to the City. As a vital public transportation system within the Greater Los Angeles Metropolitan Area, MBL must continue to integrate new and innovative technologies to meet the demand of a larger municipal operator, all while providing patrons and staff a more user-friendly experience.
Once approved, the notice inviting proposals will be published using Planetbids.com, Masstransitmag.com, Transittalent.com, and the Wave Newspaper, beginning February 23, 2023. All bids will be submitted through the Planetbids.com platform. The due date for all proposals will be April 20, 2023. It is anticipated that a vendor will be selected in May with the award of a professional services agreement presented to the City Council for consideration shortly thereafter.
ENVIRONMENTAL:
N/A
ANALYSIS:
Staff requests approval to issue RFP No. 23-8, to identify a vendor that will replace MBL’s existing CAD/AVL System, provide additional functionality, and migrate existing data from previous CAD/AVL System for the agency’s transportation system. The vendor will provide a CAD/AVL System to perform the services outlined in RFP No. 23-8, for a three- year (3-year) term with the option for renewal of up to two (2) additional, one-year (1- year) terms.
A selection process will be used to evaluate proposals based on various qualitative components, and award an agreement based on a combination of price and qualitative
CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023
considerations. Qualitative considerations include a management plan, quality of proposed personnel, qualifications and experience, and technical approach.
The award selection will be based on a combination of qualitative and price factors to determine the proposal deemed most advantageous to the City.
SUMMARY:
Staff recommends that the City Council approve issuing RFP No. 23-8, attached hereto in substantial form, to replace MBL’s existing CAD/AVL System; and direct staff to take such additional related, action that may be desirable.
ATTACHMENT(S)
1. Attachment A - Request for Proposal (RFP) No. 23-8
NEXT STEPS:
N/A
City of Montebello
REQUEST FOR PROPOSAL (RFP) No. 23-8
Computer-Aided Dispatch/Automatic Vehicle Location System February 23, 2023
ONLINE PROPOSAL SUBMITTAL ONLY THROUGH PLANET BIDS
NOTE: Updates, changes, or addendums to the RFP are posted at:
https://pbsystem.planetbids.com/portal/33072/portal-home
CAD/AVL System RFP No. 23-8
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TABLE OF CONTENT
Section Page(s)
INTRODUCTION 4
COVER LETTER 5
TIMETABLE & SCHEDULE OF EVENTS 6
PROPOSAL SUBMISSION CHECKLIST 7
SECTION 1 - INSTRUCTIONS TO PROPOSERS 8
Proposal Format and Submittal
Examination of Proposal Documents
SECTION 2 - GENERAL TERMS AND CONDITIONS
9-16
Addenda
Clarifications
Discrepancies and Misunderstandings
Withdrawals of Proposal
References
Proposal Signatures
Pre Contractual Expenses
City of Montebello Rights
State Credentials and Taxes
Responsibility for Compliance with Legal Requirements
Confidentiality and Public Record
Joint Offers
Company Personnel
Single Proposal Response
Protest Procedures
Incorporation of Proposal into Agreement
Time of Completion
Payment
Contract Documents
Scope of Contract
Performance of Work
Award of Contract
Point of Contact
Evaluation of Proposals
Proposal Evaluation Criteria
SECTION 3 - OTHER REQUIREMENTS 17-19
Licensing and Permit Requirement
Liquidation Damages
Bond Requirements
SECTION 4 - SCOPE OF WORK 19-29
SECTION 5 - QUALIFICATIONS 30
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SECTION 6 - FORM OF CONTRACT (SAMPLE) 31- 42
SECTION 7 - FORMS AND CERTIFICATIONS 43-45
Letter of Transmittal
EXHIBITS
Exhibit A - Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution
Exhibit B – References
Exhibit C – Insurance
Exhibit D – Cost Proposal Sheet
Exhibit E – Statement of Disadvantaged Business Enterprise Participation Exhibit F – Bidder’s List of Subcontractors (DBE and Non- DBE) Exhibit G – Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Primary Covered Transactions
Exhibit H – Performance Guarantee Certification
Exhibit I – Performance Bond
Exhibit J – Irrevocable Standby Letter Of Credit Certificate Exhibit K – Bank Draft
CAD/AVL System RFP No. 23-8
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Introduction/ Background
The City of Montebello (“City”), Montebello Bus Lines ( “MBL”), is soliciting competitive proposals from fully qual ified and experienced Contractors, to replace MBL’s existing Computer-Aided Dispatch/Automatic Vehicle Location (CAD/AVL) system, provide additional funct ionality, and migrate existing data from previous CAD/AVL system . As the third-largest municipal bus system in Los Ange les County, MBL proudly serves 4.5 million passengers annually throughout the communities of Alhambra, Bell Gardens, San Gabriel, Boyle Heights, Commerce, Downtown Los Angeles, East Los Angeles, La Mirada, Montebello, Monterey Park, Pico Rivera, Rosemead, South Gate, and Whittier.
MBL’s transit system consists of 35 -40ft buses; twenty-six hybrid, three electric, thirty-seven Compress Natural Gas (CNG) buses, one (1) 25ft cutaway shuttle, nearly 1,000 bus stops, and two (2) transit hubs.
The agency provides service to eight fixed routes, the longest of which is 27.2 miles. On any given week, the buses are on the road for an average of 810 hours, providing connections to neighboring transit agencies such as METRO, Norwalk Transit, Foothill Transit, and Metrolink.
The awarded contractor (“Contractor”) for the deployment of the CAD/AVL system will prepare design reviews; perform Factory Acceptance Tests, Core First Article, radio coverage, and System Acceptance tests; install all components of the CAD/AVL; prepare manuals and other required documentation; provide training; and provide warranty and technical support after the contract is awarded as is set forth in this scope of work.
The City hereby notifies all Contractors that the City will affirmatively assure that Disadvantaged Business Enterprises (“DBE”) are afforded full opportunity to participate in the performance of contracts and sub- contracts financed in part or in whole with funding provided under this RFP and will not be discriminated against on the grounds of race, color, gender, age, or national origin in consideration for an award.
Proposals must be submitted in accordance with the conditions outlined in the Request for Proposal (“RFP”) attached hereto.
The City reserves the right to reject any or all proposals, to waive information or irregularities to the extent permitted by law i n any proposal received , and to be the sole judge of the merits of the respective proposals received.
CAD/AVL System RFP No. 23-8
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DATE: February 23rd, 2023
ATTENTION: PROSPECTIVE PROPOSERS
SUBJECT: REQUEST FOR PROPOSAL (RFP) NO. 23-8
TITLE: CITY OF MONTEBELLO and MONTEBELLO BUS LINES Computer-Aided Dispatch/Automatic Vehicle Location System The City of Montebello ( “City”), Montebello Bus Lines (“MBL”), invite proposals from fully qualified and experienced Contractors, to replace MBL’s existing Computer-Aided Dispatch/Automatic Vehicle Location (CAD/AVL) system, provide additional functionality, and migrate existing data from previous CAD/AVL system.
The term of the proposed agreement shall be for three (3) years with two (2) one-year term options commencing upon the date of the contract execution between the City and the successful Contractor.
A Pre-Proposal Meeting will be held on Tuesday, March 14th, 2023. The meeting will convene at 10:00 AM Pacific Standard Time in the Transportation Building located at 400 South Taylor Avenue, Montebello. A facility walk -thru will follow the meeting. Proposers must abide by all Federal, State, local, and City coronavirus (COVID-19) protective measures (e.g., face coverings) at all times while onsite.
All potential proposers (“Proposers”) are highly recommended to attend this important meeting. All correspondence, communications, and contact concerning any aspect of this solicitation or offers shall be only with the following person [or his designated representative if applicable] (hereinafter, the “City’s Point of Contact”).
Name: Rohan Anderson
Title: Senior Management Analyst
Address: 400 S. Taylor Ave.
Montebello, CA 90640
Telephone: (323) 558-1625 ext.104
E-mail: [email protected]
Only substantive inquiries will receive a response. All substantive questions submitted in writing , as outlined below, will be responded to according to the guidelines contained herein. Responses will be in writing and will be provided to all prospective Proposers and placed on the City ’s website. Responses to questions or comments regarding this RFP provided by any other department, employee, or City department other than the City’s Point of Contact set forth above shall not be considered valid, and the City will not be bound by any such comments or responses. Inquiries received via telephone or orally in person will not receive a response.
Proposals must be received by Thursday, April 20, 2023, at 3:00 PM Pacific Standard Time and submitted in accordance with the instructions contained in this RFP. No exceptions will be granted regardless of reason or circumstances.
All proposals must contain an original signature by an authorized officer of the company.
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The successful Proposer will be required to comply with all applicable Equal Opportunity Laws and Regulations. The City hereby notifies all prospective Proposers that the City will require each Proposer affirmatively demonstrate that Disadvantaged Business Ent erprises are afforded full opportunity to participate in the performance of contracts and sub-contracts financed in part or in whole under this RFP, and will not be discriminated against on the grounds of race, color, gender, age, or national origin in consideration for an award.
The City reserves the right to reject any or all proposals, to accept all or any part of any proposal, to waive any informality or minor irregularities in any proposal received to the extent permitted by law and where such action best serves the interest of the City , and to be the sole judge of the merits of the respective proposal received.
The City and MBL is committed to ensuring that no person is excluded from participation in, or denied the benefits of its programs and/or services on the basis of race, color, or national origin in accordance with FTA Circular 4704.1 and Title VI of the Civil Rights Act of 1964, as amended ("Title VI"). In addition to Title VI, NTS also prohibits discrimination based on sex, age, or disability.
Any person who believes he or she has been subjected to discrimination under Title VI can file a complaint with MBL. For more information on M BL’s Civil Rights Program, and the procedures to file a complaint, contact:
Name: Adrianna Kendricks
Title: Director of Transportation
Address: 400 S. Taylor Ave.
Montebello, CA 90640
Telephone: (323) 558-1625
Fax Number: (323) 887-4643
E-mail: RideMBL.com
You may also contact the Federal Coordination and Compliance Office, Civil Rights Division at the Title VI Hotline: 888-TITLE-06 (888-848-5306) or send a letter to:
U.S. Department of Justice
Civil Rights Division
Federal Coordination and Compliance Section, NWB
950 Pennsylvania Avenue, N.W. Washington, D.C. 20530
More information on Title VI is available from the Justice Department online at www.justice.gov
TIMETABLE & SCHEDULE OF EVENTS
Scheduled Tasks Scheduled Date
Issuance of RFP Thursday February 23rd, 2023
Pre-Proposal Meeting Tuesday March 14th, 2023
Deadline to Submit Questions Thursday March 23rd, 2023, at 3:00 PM PST Responses to Questions Provided Tuesday April 4th, 2023 Deadline to Submit Proposals Thursday April 20th, 2023, at 3:00 PM PST Presentations & Intent to Award Week of May 8th, 2023
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PROPOSAL SUBMISSION CHECKLIST
This checklist must be completed and returned with the Proposal. Failure to return this checklist may be cause for considering the Proposal non-responsive.
Description Section/
Page
Proposer shall
initial here
1 Proposal Page # 5
2 Letter of Transmittal Page # 43
3 Licensing, Permits, and Certificates Page # 17
4 Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution
Exhibit A
5 References Exhibit B
6 Insurance Exhibit C
7 Cost Proposal Sheet Exhibit D
8 Statement Of Disadvantaged Business Enterprise Participation Exhibit E 9 Bidder’s List of Subcontractors (DBE and Non-DBE) Exhibit F 10 Certification Regarding Debarment, Suspension…. Exhibit G 11 Performance Guarantee Certification Exhibit H
12 Performance Bond Exhibit I
13 Irrevocable Standby Letter Of Credit Certificate Exhibit J 14 Bank Draft Exhibit K
OPTIONAL ITEMS
15 Requests for exceptions or deviations. Page # 8
Company Name:
Name of Proposer initialing document (print):
Email address of Company Contact:
Signature:
Title:
Date:
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SECTION 1 - INSTRUCTIONS TO PROPOSERS
PROPOSAL FORMAT AND SUBMITTAL
Proposals can be submitted via the https://pbsystem.planetbids.com/portal/33072/portal-home Portal (accessed through the City of Montebello’s official website at https://cityofmontebello.hosted2.civiclive.com/cms/One.aspx?portalId=58756&pageId=84839) up to the hour of 3:00 p.m. on Thursday, April 20, 2023.
All proposals must contain an original signature by an authorized officer of the company. Proposals received after the above-listed date and time will not be considered.
Proposals shall not include a photocopy of the following:
· INSTRUCTIONS TO PROPOSERS,
· QUALIFICATIONS,
· SCOPE OF WORK.
Proposals shall be typed, single -spaced and submitted on 8 1/2“x11” paper. Proposals shall not include any unnecessarily elaborate or promotional material. Proposals may not be modified or corr ected after being opened unless an addendum is issued requesting resubmissions. Proposals will not be valid until all information has been verified and Proposer’s references have been checked. All proposals shall be accompanied by a completed and signed a letter of transmittal provided as a part of this RFP.
All requests for exceptions or deviations as a result of this RFP shall be clearly identifiable by a separate section of the Proposer’s submitted proposal for review by the City. It shall be the City’s right to accept or reject any portion of the submitted requests.
Proposals shall be submitted in accordance with the form prescribed herein. Failure to respond in this manner may render the proposal non -responsive. Unauthorized conditions, limitations, or provisions attached to a Proposal will render the proposal non-conforming and non-responsive and may cause its rejection. The completed proposal shall be without interlineations, alterations, or erasures. Proposers submitting basic conforming proposals may choose to submit alternate proposals as complete and separate offers if the alternate proposal offers technical or other improvements or modifications, which are to the overall benefit of the City. Any and all alternate proposals must be submitted in writ ing and included with the original proposal, conforming to the requirements as stated herein. No verbal modifications will be accepted.
Proposal documents shall be deemed to include by reference each and every one of the following:
1. Request for Proposal (RFP)
2. Addenda to RFP
3. Supplements to RFP
4. All other required forms
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EXAMINATION OF PROPOSAL DOCUMENTS
By submitting a proposal, Proposer represents that: (1) Proposer has thoroughly examined and become familiar with the Scope of Work required under this RFP, (2) Proposer comprehends all conditions that may impact the proposal, (3) Proposer has reviewed all addenda, and (3) Proposer is capable of providing the equipment, goods , and services necessary to perform the Scope of Work and/or meet the specifications outlined in this RFP, in a manner that meets the City’s objectives. Failure to examine the documents and inform itsel f shall be at the Proposers’ own risk. A Proposer shall have no claim against the City based upon ignorance of or misunderstanding of the RFP documents. Once the award has been made, failure of a Proposer to have read all of the conditions, instructions and the agreement shall not be cause to alter any term of the agreement nor shall such failure provide valid grounds for a Proposer to withdraw its proposal or to seek additional compensation.
SECTION 2 – GENERAL TERMS AND CONDITIONS
ADDENDA
Any changes made by the City to the requirements in this RFP will be made by written addenda. Any written addenda issued to this RFP shall be incorporated into the terms and conditions of any resulting Agreement. The City will not be bound by any modificat ions to or deviations from the requirements set forth in this RFP as the result of oral instructions. The City reserves the right to revise or withdraw this RFP at any time and for any reason.
CLARIFICATIONS
Should a Proposer require clarifications of this RFP, the Proposer shall notify the contact person identified in this RFP in writing. Should the City, in its sole discretion, determine that the point in question is not clearly and fully set forth; the City will issue a written addendum clarifying the matter. The said addendum shall be posted on the PlanetBids.com web page.
All questions, clarifications, or comments must be submitted to or no later than 3:00 pm, Thursday, March 23rd, 2023. No questions will be answered individually by the City or Transportation Departments.
Requests for clarification, questions , and comments must be clearly posted on the PlanetBids Q & A section. The City is not responsible for failure to respond to a request that has not been submitted in accordance with this section.
Responses by the City to the clarifications, comments, and questions will be communicated via PlanetBids.
Every attempt will be made to provide responses to all Proposers in accordance with the procurement schedule for this RFP. Inquiries received after the deadline will not be accepted and will be returned to the sender without a response.
Requests for clarifications and questions should be formatted in the following manner:
1. Section
2. Paragraph number
3. Page number
4. Text of the passage being questioned
5. Question
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DISCREPANCIES AND MISUNDERSTANDINGS
Proposing Companies must satisfy themselves by personal examination of any work site, drawings, Scopes of Work and by any other means as they may believe necessary, as to the actual physical conditions, requirements, and difficulties under which the work must be performed. No Proposing Company shall at any time after submission of the proposal, make any claim or assertion that there was any misunderstanding or lack of information regarding the nature or amount of work necessary for the satisfactory completion of the job. Any errors, omissions, or discrepancies found in any plans, specifications, or other documents provided, shall be called to the attention of the Buyer and clarified prior to the submission of proposals.
WITHDRAWAL OF PROPOSALS
Proposers may withdraw their proposals in writing, provided that such requests are received by the City prior to the scheduled deadline for Proposal submission or within six months following the scheduled deadline for Proposal submission when no contract has been awarded.
REFERENCES
All reference information requested in this RFP and specified in the form included in this RFP must be submitted with the proposal. Refer to Exhibit B.
At the discretion of the Evaluation Committee, the City may elect to perform site visits at the Proposer’s customer locations. These optional site visits will be in addition to any presentations and/or technical demonstrations. Some or all RFP Evaluation Committee members may travel, at City expense, to sites at which finalist Proposers are performing like services. The purpose of such visits shall be to provide the evaluation team with an increased understanding of the process and assess the Proposer’s implementation and performance.
PROPOSAL SIGNATURES
If an individual makes the proposal it shall be signed and the full name and address of the Proposer shall be given.
If a partnership makes the proposal, it shall be signed with the partnership name, by a member of the partnership who shall sign by name and the name and address of each partner shall be given.
If a corporation prepares the proposal, the name of the corporation shall be provided and signed by two (2) duly authorized Officers and, if available, stamped with the corporate seal, and the names and titles of all officers of the corporation shall be given. If a corporation provides a certified letter stating that one (1) duly authorized officer signature is binding for the corporation, this will suffice to omit t he second signature requirement in the proposal. Certified letter is to be included in the proposal accompanied with the Letter of Transmittal.
PRE-CONTRACTUAL EXPENSES
The City will be under no obligation for payment of pre -contractual expenses. Pre-contractual expenses are defined as expenses incurred by Proposer in:
· Preparing the proposal in response to this request.
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· Submitting that proposal to the City.
· Negotiating with the City any matter related to this proposal, and/or · Any other expenses incurred by the Proposer prior to the date of award.
CITY OF MONTEBELLO RIGHTS
In its discretion, the City reserves the right to:
1. Reject any and/or all proposals for no reason or any reason including but not limited to the following:
a. The proposal is incomplete, non -responsive, obscure, irregular , or lacking necessary detail and specificity.
b. The Proposer, in the sole judgment of the City, lacks the qualifications, experience, and/or responsibility necessary to provide the services.
c. The Proposer failed or neglected to complete and submit any information within the time specified by the City, and as may be otherwise required herein.
2. Reject any proposal that, in the opinion of the City, is so unbalanced in comparison to other proposals received and/or to the City’s internal estimates that it does not accurately reflect the cost to perform.
3. Accept all or any part of a proposal.
4. Cancel the entire RFP;
5. Issue subsequent RFPs;
6. Waive any errors or informalities in any proposal, to the extent permitted by law.
STATE CREDENTIALS AND TAXES
The Proposer shall be appropriately licensed in accordance with the laws of the State of California for the work to be performed. The cost for any required licenses and/or permits shall be the responsibility of the successful Proposer. The successful Proposer is liable for any and all taxes due as a result of the contract.
RESPONSIBILITY FOR COMPLIANCE WITH LEGAL REQUIREMENTS
The Proposer’s products, services, and facilities shall be in full compliance with all applicable Federal, State and local regulations, standards, and ordinances, regardless of whether or not they are referred to in the RFP.
CONFIDENTIALITY AND PUBLIC RECORD
Proposals submitted shall become the exclusive property of the City. Submissions shall become a matter of public record subject to disclosure, except for those elements that the City Attorney’s Office determines to be exempt from disclosure under the California Public Records Act or any other applicable state and/or federal law.
JOINT OFFERS
Where two or more Proposers desire to submit in response to this RFP, they shall do so on a prime -sub Contractor basis rather than as a joint venture. The City intends to contract with a single firm and not with multiple firms doing business as a joint venture. Any proposal submitted on behalf of any form of joint venture or partnership between two (2) existing Proposers may be considered collu sive and may be rejected as non-responsive.
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COMPANY PERSONNEL
It shall be the burden of the successful Proposer to ensure all personnel possesses qualifications and/or experience. All personnel required in performing the services herein shall b e secured at the expense of the successful Proposer. Personnel shall not be employees of or have any contractual relationship with the City. Successful Proposer’s personnel shall conduct themselves in a professional manner to all City employees at all time s. Rude or discourteous behavior by the successful Proposer will not be tolerated and the offense can be justification for termination of contract. All sub-Contractors of successful Proposer shall abide by all the requirements set forth in this section.
SINGLE PROPOSAL RESPONSE
If only one proposal is received in response to this RFP, a detailed cost/price proposal may be requested of the Proposer. A cost or cost and price analysis and evaluation and/or audit of the cost may be performed in order to determine if the price is fair and reasonable. If the City determines a cost analysis is required, Proposer must be prepared to provide, upon request, cost summaries of estimated costs (i.e. labor, equipment, supplies, overhead costs, etc.) and documentation supporting all cost elements.
PROTEST PROCEDURES
All protests must be filed in accordance with the following:
1. The protest must be in writing and identify the solicitation (RFP) number.
2. The protest must be submitted by some return receipt method or guarantee of delivery that insures that the protest was received in a timely manner. The City is not responsible for lost or delayed deliverables.
3. The party’s standing to protest must be identified.
4. Identification of the specific provision, la w, regulation, specification, procedure , or policy violated.
5. A statement of the relief requested.
Protests related to the content of the RFP shall be received no later than ten (10) days prior to the proposal due date; or within five (5) days after the proposal opening. If the Protest does not comply with the preceding requirements it may not be evaluated and may be returned to the Protestor.
All protests shall be submitted to the contact person identified in this solicitation. If the solicitation is funded with Federal Transit Administration (FTA) monies, a protest may be filed with the FTA. However, the FTA only accepts protests alleging that a grantee failed to have written protest procedures or did not comply with those procedures or protests that involve a conflict of interest or fraud.
INCORPORATION OF PROPOSAL INTO AGREEMENT
This RFP a nd the Proposer’s response, including all promises, warranties, commitments , and representations made in the successful proposal, shall be binding and incorporated by reference in the City’s contract with the successful Proposer.
TIME OF COMPLETION
The contract time shall commence from the date on the Notice to Proceed (NTP) as authorized in writing by the City. The services shall be completed within the time period specified in the Request for Proposal. In case the services under the terms of these provis ions and related p rofessional contract shall be necessarily
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delayed because of strike, injunctions, government controls, or by reasons of any cause or circumstances beyond the control of the successful contractor (the “Contractor”), the time of completion shall be extended by a number of days to be determined in each instance by mutual agreement between the Contractor and MBL.
PAYMENT
A separate invoice, referencing the respective purchase order number, shall be issued in duplicate for each invoice shown in the payment schedule and addressed to: City of Montebello, Attn: Accounts Payable, 1600 West Beverly Boulevard, Montebello, California, 90640.
Payment will be made within thirty (30) days after acceptance and approval of invoice.
Payment Schedule: Monthly
Provide (1) One invoice monthly.
CONTRACT DOCUMENTS: ORAL CHANGES / CONTRACT TERMINATION Oral Changes: Oral changes and oral change orders are not permitted. All proposed changes must be submitted in writing to, and approved by, MBL prior to becoming a Contract modification.
Contract Termination: MBL may terminate any resulting Contract for convenience at any time by giving the Contractor five (5) days written notice thereof. Upon termination, MBL shall pay the Contractor his allow able cost incurred to date of termination, and those costs deemed reasonably necessary by MBL to effect such termination, determined in accordance with Part 1-8.705-1 of the Federal Procurement Regulations (41CFR 1-8) or other applicable portion(s) of said Regulations. In addition, MBL shall pay the Contractor a percentage of the project, which relates to Contract work accomplished to date of termination. The effective date of termination shall be the date of Notice of Termination.
In the event the Contractor breaches the terms or violates the conditions of the Contract, and does not within ten days, thereafter, cure such breach of violation, MBL may immediately terminate the Contract for default. The Contractor shall be liable for any and all costs incurred by MBL as a result of such default.
SCOPE OF CONTRACT
The Contractor shall provide all services necessary as per the Scope of Work described in this Request for Proposal.
PERFORMANCE OF WORK
It is the intent of these specifications to provide only services of the highest quality. The cost to be quoted and submitted shall include all items of service and any other costs necessary to fully complete the work pursuant to the provisions. It is the aim of these specifications that the Contractor provide complete services of the type prescribed. Any items omitted from such speci fications which are clearly necessary for the completion of such services shall be considered a portion of such services, although not directly specified or called for in these specifications. No advantage shall be taken by the Contractor in the omission of any detail which goes to make the services complete, even though such detail is not mentioned in these specifications.
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AWARD OF CONTRACT
The agreement resulting from this RFP (the “Agreement”) will be awarded to the responsive and responsible Proposer whose proposal, conforming to the requirements of the RFP, is determined to be the most advantageous (“Best Value” as described in the Federal Transit Administration Circular 4220.1F) to the City, based on the Evaluation Criteria. No agreement shall exist until the City C ouncil or the City Manager has awarded the Agreement and it has been mutually executed. The City reserves the right to:
(a) Accept all or any part of a proposal;
(b) Reject any or all proposals for any reason;
(c) Waive any informality or minor errors to the extent permitted by law; (d) Award the Agreement as the interest of the City may require; (e) Cancel the entire RFP; and/or
(f) Issue subsequent RFPs.
An Evaluation Committee comprised of MBL staff, in accordance with the Proposal Evaluation Criteria set forth in Evaluation Criteria section of this RFP, will evaluate all the proposals. During the evaluation period, the City may interview some or all the proposing firms. Proposers should be aware; however, that award may be made without interviews or further discussions.
The City may negotiate contract terms with the selected Proposer prior to award, and expressly reserves the right to negotiate with several Proposers simultaneousl y and, thereafter, to award a contract to the Proposer offering the most favorable terms to the City. However, negotiations may or may not be conducted with Proposers; therefore, the proposal submitted should contain the most favorable terms and conditions, since the selection and award may be made without discussion with any Proposer.
No agreement shall exist until the City Council or City Manager has awarded the Agreement and it has been mutually executed. The City reserves the right to reject any and all proposals for any reason, to waive any informality or minor errors as determined by the City in any proposal and to award the Agreement as the best interests of the City may require. The award, if any, may be made by the City within ninety (90) calendar days after the opening of the proposals.
Point of Contact
This RFP is issued by the City, and the Senior Procurement Analyst will be the sole point of contact (“Point of Contact”) during the RFP submission and procurement process. Communications initiated by respondents to this RFP with members of the City Council, or officers, personnel or employees of the City, other than as c oordinated by the Point of Contact, may be grounds for disqualification. Any inquiries or requests during this submission or procurement process shall be submitted in writing to the following Point of Contact:
City of Montebello Transportation Department
Attention: Rohan Anderson,
Senior Management Analyst
400 South Taylor Ave.
Montebello, CA 90640
(323) 558-1625 ext. 104
Email: [email protected]
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If the Point of Contact determines a response to any such inquiry is warranted, said response will be issued to all prospective Proposers via PlanetBids.com
EVALUATION OF PROPOSALS
MBL uses a selection process in which proposals contain both price and qualitative components, and award is based upon a combination of price and qualitative considerations. Qualitative considerations may include experience and qualifications, technical ap proach, quality of proposed personnel, and/or management plan. The award selection is based upon consideration of a combination of technical and price factors to determine the offer deemed most advantageous to MBL.
An evaluation committee will be appointed to review all proposals. The committee will be comprised of MBL staff. Committee members will initially evaluate each proposal using the pass or fail criteria identified herein. Proposers who pass this first stage of testing will progress to the next step in the evaluation.
On the completion of the initial Pass/Fail review, the committee will evaluate proposals using the two - step process. Technical proposals will be reviewed and scored first without consideration for price. The committee will then open the cost and price proposals and evaluate and score them accordingly. During the technical evaluation, the committee, at its sole discretion may contact any or all the Proposers with specific questions or requests for clarification. After both the technical and cost/price proposals have been evaluated and scored, the committee will arrive at a “comprehensive proposal score” for each proposal.
A list of top -ranked proposals within a competitive range will be developed based upon the total comprehensive scores provided by committee members. At this time, the committee may decide that the evaluation process is complete and submit a final recommendation to the Director of Transportation.
If the committee determined it to be necessary, it may then conduct interv iews and negotiations with short-listed Proposers. As no other interview dates are available. Proposers who are unable to attend their interview as scheduled may be eliminated from further participation. The interview may consist of a short presentation by the Proposer after which MBL may ask questions and/or request clarification related to any element of a proposal and its qualifications. MBL may also enter negotiations with the Proposer.
At the conclusion of interviews and negotiations, the evaluation committee may choose to proceed using one of the following processes:
The committee may find it necessary to re -score the proposals in light of information gained during the interviews and negotiations process. The proposals will be scored in the same manner as the original proposals.
The committee may ask the Proposers to consider the dialog of negotiations and revise their proposals. A deadline will be set for submission of the revised proposals. If a Proposer is unable to meet the deadline or chooses not to revise its proposal, its existing proposal will be rescored along with revised proposals in the same manner as the original proposals.
Proposers remaining within the competitive range may be asked to submit a Best and Final Offer (BAFO).
In the BAFO req uest, the Proposers may be asked to provide additional information, confirm or clarify issues and submit a final cost/price offer. A deadline for submission will be stipulated. The BAFO’s will be scored in the same manner as the original proposals.
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After the BAFO’s are evaluated and scored, the evaluation committee may recommend a proposal with the highest final ranking or a short list of top ranked proposals within the competitive range whose offers(s) are the most advantageous to MBL.
MBL will evaluate the offers based on the following criteria: Pass/Fail Criteria · Proposer has demonstrated the ability to meet the insurance requirements described in the Agreement. Proof of ability, for example a sample certificate with another agency, or a statement that proposer can meet the insurance requirements in the RFP should be attached to proposal. (P/F)
· Proposer has demonstrated at least five (5) years of CAD/AVL system experience. (P/F) · Proposer has demonstrated previous experience working for or with public agenc ies, transit entities, or corporations on security project. (P/F)
If the Proposer does not meet any of the criteria mentioned above, their proposal may not be considered for evaluation:
EVALUATION CRITERIA
Award will be made to the Offeror whose proposal offers the best value to the City. Proposals that meet the pass/ fail criteria now will be evaluated in accordance with the following criteria:
Qualitative Considerations
The Proposer’s qualitative proposal will be evaluated on the basis of the following factors, each having the weighted value set forth below:
1 Project Management Plan
The proposal shall contain a detailed explanation of the project and not a reiteration of the RFP itself. The information offered should be a compendium of the Proposer’s knowledge of the standards outlined in the Scope of Work. 15 points
2 Proposed Project Team
Qualifications and experienc e of managemen t and staff and other personnel; comprehensiveness of plan and team’s familiarity with the provision of Security Services.
10 points
3 Qualifications and Experience
Demonstrate experience completing CAD/AVL system projects of the same or similar magnitude. Presentation of a catalog of CAD/AVL system experience and expertise most advantageous to the City.
10 points
4 Technical Approach
Understanding of the RFP requirements and i llustrating the ability to meet performance objectives, compliance with all technical and administrative requirements, financial viability, accounting, and reporting. 40 points
TOTAL 75 points
Price Considerations
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The Price proposals will be evaluated as follows:
5 Price
The Proposer’s Price proposal will be compared to the proposal with the Best Value to the City. The best value responsive price will receive the total weighted value for this criterion.
25 points
TOTAL 25 points
All other Price proposals will be scored as follows:
Proposer Price Score = Best Price proposal x 25 (Total Points Available for Price Evaluation).
SECTION 3 - OTHER REQUIREMENTS
LICENSING AND PERMITS
The Contractor shall be licensed, bonded, and experienced in performing the services described in the Scope of Work and shall provide evidence of current licensing and permits as required by local, State, and Federal regulations in providing such services.
LIQUIDATION DAMAGES
MBL commits to working cooperatively with the Contractor to resolve Contract or’s equipment and performance challenges as they may arise, however, certain proven contractual violations may result in the assessment of liquidated damages at MBL’s discretion.
Whenever assessed, the Contractor will provide a credit letter in the amount specified to be applied to a subsequent invoice. Each such credit letter will include information concerning the date, time and nature of the violation(s), the amount assessed for each and the total amount credited. Failure to comply with any aspect of the Scope of Work may result in a credit to MBL of $250 per violation.
BOND REQUIREMENTS
Bid Guarantee
The Contractors shall furnish a bid guarantee in the form of a bid bond, or certified treasurer’s or cashier’s check issued by a responsible bank or trust company, made payable to the City. The amount of s uch guaranty shall be equal to 10% of the first year bid price.
In submitting this bid, i t is understood and agreed by the Contractor that the City reserves the right to reject any and all bids, or part of any bid, and it is agreed that the Bid may not be withdrawn for a period of (90) days subsequent to the opening of bids, without the written consent of City.
It is also understood and agreed that if the undersigned bidder should withdraw any part or all of his bid within (90) days after the bid opening without the written consent of the City, or refuse or be unable to enter into an agreement as provided above, or refuse or be unable to furnish adequate and acceptable Performance and Payment Bonds, or refuse or be unable to furnish adequate and acceptable insurance, as provided above, it shall forfeit its bid guarantee to the extent City’s dam ages occasioned by such withdrawal, or refusal, or inability to enter into an agreement, or provide adequate security thereof.
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It is further understood and agreed that to the extent the defaulting Contractor's bid guarantee shall prove inadequate to fully recompense the City for the damages occasioned by default, then the undersigned Contractor agrees to indemnify the City and pay over to the City the difference between the bid guarantee and City’s total damages so as to make City whole.
The undersigned understands that any material alteration of any of the above or any of the material contained herein, other than that requested will render the bid unresponsive (Exhibit H. Performance Bid Guarantee). A copy of the bid bond shall be submitted via the PlanetBids.com Portal.
Performance Guarantee
A Performance Guarantee in the amount of 100% of the Agreement first year value is required by the City to ensure faithful performance of the Agreement. Either a Performance Bond or an Irrevocable Standby Letter of Credit shall be provided by the Contractor and shall remain in full force for the term of the Agreement.
The successful Contractor shall certify that it will provide the requisite Performance Guarantee to the City within ten (10) business days from Agreement execution (Exhibit I. Performance Bond). The City requires all Performance Bonds to be provided by a fully qualified surety company acceptable to the City and listed as a company currently authorized under 31 C.F.R. part 22 as possessing a Certificate of Authority as described hereunder. The City may require additional performance bond protection when the contract price is increased. The increase in protection shall generally equal 100 percent of the increase in the contract price. The City may secure additional prote ction by directing the Contractor to increase the amount of the existing bond or to obtain an additional bond.
If the Contractor chooses to provide a Letter of Credit as its Performance Guarantee, the City shall furnish with its bid, certification that an Irrevocable Standby Letter of Credit will be furnished should the Bidder become the successful Contractor. The Contractor shall also provide a statement from the banking institution certifying that an Irrevocable Standby Letter of Credit for the action wi ll be provided if the Contract is awarded to the Bidder. The Irrevocable Stand-By Letter of Credit will only be accepted by the City if:
1. A bank in good standing issues it. The City will not accept a Letter of Credit from an entity other than a bank.
2. It is in writing and signed by the issuing bank.
3. It conspicuously states that it is an irrevocable, non-transferable, “standby” Letter of Credit.
4. The City is identified as the Beneficiary.
5. It is in an amount equal to 100% of the Contract first year value. This amount must be in U.S. dollars.
6. The effective date of the Letter of Credit is the same as the effective date of the Contract.
7. The expiration date of the Letter of Credit coincides with the term of this Agreement.
8. It indicates that it is being issued in order to support the obligation of the Contractor to perform under the Contract. It must specifically reference the Contract between the Ci ty and the Contractor the work stipulated herein.
The issuing bank’s obligation to pay will arise upon the presentation of the original Letter of Credit and a certificate and draft (similar to the attac hed forms contained in Exhibit J . Irrevocable Stand-By Letter of Credit Certificate and Exhibit K. Bank Draft) to the issuing bank’s representative at a location and time to be determined by the parties. This documentation will indicate that the Contractor is in default under the Contract.
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SECTION 4 – SCOPE OF WORK
The City, through MBL, is soliciting competitive proposals from fully qualified and experienced Contractors, to replace MBL’s existing Computer-Aided Dispatch/Automatic Vehicle Location (CAD/AVL) system, provide additional functionality, and migrat e existing data from previous CAD/AVL system. The Contractor shall install the CAD/AVL system to perform the services, outlined in the Scope of Work, for a three-year term with the option for renewal of up to two (2) additional one-year (1-year) terms.
The complete and integrated CAD/AVL System must include the following core requirements, but not be limited to:
• Computer-Aided Dispatch (CAD)
• Automatic Vehicle Location (AVL) (Revenue and Non-revenue Vehicle) • Automatic Voice Annunciation System (AVA)
• Head sign / Marquee Integrations
• Bus Stop/Shelter Signage Integrations
• Covert Emergency Alarms (CEA)
• Single Point Vehicle Log-in
• Business Intelligence and Reporting (OTP, Vehicle Miles/Hours, Performance of Operators and Vehicles, Incident Management, Farebox Recovery, etc.)
• NTD Certification and APC Benchmarking
• Voice over IP (VoIP) Based Voice Communications – Motorola UHF ICIS to be used as backup • Yard Management System
• Real-time Data Communications, Detours, Alert Management, Passenger Information, GTFS, and GTFS-RT. Integrations with apps such as Google Transit, Apple Maps, Moovit, and TransitApp • Uptime SLA to be agreed upon between City and Vendor. • Hosting and support
• Recommended process for offloading data
• Traffic Signal Priority (TSP) Integration
• Automatic Vehicle Monitoring (AVM) (Optional)
• Time Keeping and Scheduling (Optional)
• Planning and Scheduling(Optional)
• Pre/Post Trip Inspections (Optional)
Desired Systems Integration and Existing Infrastructures: MBL desires to have these systems integrated or replaced with by the proposed contactor:
• IBM Maximo Enterprise Asset Management System
• Genetec Surveillance System – push button for video tagging • Remix Platform
• TransTrack
• City Website
• Cubic Universal Fare System
• Eventide Nexlog: Log voice calls if replacement VoIP system does not have call logging capabilities • Infotainment: Display route information on-board
• Destination signs
• Real-time signage at bus stops
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• Optibus
• Cradlepoint: IBR1700
• Verizon Cellular Network
• Trackit Manager
Computer-Aided Dispatch and Automated Vehicle Location (CAD/AVL) System The Computer-Aided Dispatch (CAD) component shall be the primary means of assigning, overseeing, and communicating with MBL vehicles; preparing and processing incident reports. CAD shall support multiple user groups (e.g., driver supervisors, operations managers, system administrator) with settable system rights and privileges. CAD functionality shall be available on MBL workstations via a web-based application or similar means.
The A utomatic Vehicle Location (AVL) component shall store, and regularly update real -time vehicle location information of MBL vehicles. The AVL component of the total solution shall display the vehicle information in real-time on a geographic map at workstatio ns for dispatch, customer service and other stakeholders along with other pertinent information regarding the route, vehicle and schedule data.
The CAD/AVL system shall also be able to integrate or import transit data (Routes, Stops, Trips, etc.) via direct integration, and/or imports from route/scheduling exports.
The CAD/AVL system shall also have the capability to input changes to the line, pattern and schedule data from a workstation, for full or ad-hoc changes and detours at the trip, run and line levels. The system shall also support interlining.
Proposer shall be sufficiently knowledgeable of the transit scheduling software to carry out the required integration for meeting these CAD/AVL system specifications. Such bidirectional data transfer and synchronization with the CAD/AVL System and other MBL systems shall occur either automatically or upon user initiation, dependent upon MBL CAD/AVL System administrator settings Graphical User Interface
All the information that is provided to the CAD/AVL users shall be via intuitive and easy to use Graphical User Interfaces (GUI). The GUI shall not be static and shall be fully customizable for each class of user. For example, dispatchers shall be able to customize what they are able to view on the screens related to route and vehicle information, customer service agents shall be able to customize what they are able to view on the screens related to real-time vehicle/route performance information and triggers etc.
The system shall display if vehicle(s) are in operation but have not been logged in. The dispatchers shall have the capability to remotely login these vehicles with the operator and route credentials which shall populate all the other on-vehicle systems through single sign-on.
Geographic Display/Functionality
Geographic display/functionality shall include the following but not limited to:
• Allow centering geographic display on and automatically tracking a specified vehicle • Allow centering on specified lines, stops, and time points. • Allow selection of vehicle icon to display text/tabular display data about vehicle
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• Automatically adjust minor vehicle location discrepancies to show vehicle icons on streets • Automatically center the display on a vehicle with a covert alarm status while the covert alarm is active.
• Include an up to date map of all highways, streets, and roads by name • On highest-level map, show MBL’s full service area
• On lowest -level map, show all streets, roads, railroad tracks, water boundaries, jurisdictional boundaries, bus stops, transfer points, and significant landmarks within the displayed area
Operations Display/Functionality
Operations display/functionality shall include the following, but not limited to:
• Display the conditions, location, direction of travel and route/schedule adherence of vehicle • Display selected lists of data, including vehicle schedules, Operator identification, assignments and schedules, pull-in/layover status, back in-service time/place, schedule and route adherence. • Display assignments of operators to lines/runs and or vehicles. • Display various types of canned and custom text messages • Visible list of unacknowledged and acknowledge message and responses • Allow the ability to create unlimited customized dispatch triggers and/or alerts • Triggers and/or alerts shall have the capability to be created in real -time within the CAD component
• Operations status entries shall be generated automatically by the CAD/AVL system when an out- of-tolerance condition is detected. The CAD/AVL system shall generate notifications for a number of vehicle
Incident Reporting
The CAD/AVL system shall support automatic and manual collection and entry of vehicle information for incident reports. For each incident report, the CAD/AVL system shall automatically record vehicle status, run, line, schedule deviation, time, operator identification, location, alarm status, other pertinent vehicle information, system date and time, workstation identification, and dispatch user. Incident reports shall accept from a console and record manually entered text, coded, combo-boxed or check-boxed notes, and an indication that the incident is closed or the report cancelled.
The CAD Incident Report subsystem shall also include the following features, but not limited to:
• Automatically assign a unique identification to each created incident report • Be searchable by any incident report data field
• Allow recording of free-form text comments (i.e. Memo field) • Be exportable in a various format (e.g. Comma delimited, PDF, and MS Office applications) • Maintain a log of incident report creations and modifications by user, date, and time
Time of Arrival and Departure Data
The CAD/AVL System shall determine dynamic estimated time of arrival to the next vehicle stop for each vehicle based on data from the AVL System. The time of arrival information shall be available for the Passenger Information Display System (PIDS), internet access including MBL’s public website, Google, Computer-Aided Dispatch (CAD), and other systems.
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The time of arrival/departure information shall be determined using an analytical algorithm that utilizes the current AVL information for the approaching/departing vehicle relative to a stop. The CAD/AVL System shall have functionality to calculate the arrival/departure times for a number of vehicles at each stop for all routes and directions serving that stop.
The CAD/AVL System shall provide GTFS-RT feed to support external customer information and planning applications.
Reporting
Comprehensive reporting shall be provided by the syst em to display critical reports and information to enable management to monitor performance and conditions.
The solution shall also provide for viewing and reporting of data by exception that is configurable by the users. The configurable parameters shall allow for various event triggers such as vehicles running early or late, vehicle off -route, service type, date, time, route, and vehicle. The system shall allow for flexible reporting (canned, custom and Ad hoc) and mining of data.
Reporting functionalities and capabilities shall include the following at a minimum, but not limited to:
• Revenue Vehicle Operations
• Dashboards that display critical information on a continuous basis • Current status of service showing active CEA, number of vehicles currently on routes, percent of fleet on time, and percent of fleet late
• Dispatch user information such as vehicle and line assignments, action events such as vehicle calls and alarms, and dispatch user responses, all with time tags for analysis • Stop information including line, run, direction, vehicle, operator, miles, etc. • Summary data on trip number, line, run, day of week, time period, Operator ID, vehicle ID, schedule adherence, passenger boarding’s, etc. Summaries shall be for daily, weeks, months, quarters, and years
• Time-point data including trip vehicle, line, run, and time of time-point passage • Trip information including line, run, direction, vehicle, operator, miles, etc. • Revenue and non-revenue miles and hours
• Schedule adherence
• Bus assignments including changes
• Run cancellations
• Out late buses
• Service delays, including type, reason, length of delay, service loss, mileage lost • Operator Management
• Operator assignments and assignment fulfillment
• Incident Reports involving Operator error
• Accident Reports
Onboard Vehicle System Requirements
The Contractor shall furnish and install a CAD/AVL System for MBL vehicles, with all equipment, cabling software, components and licenses necessary.
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Vehicle Logic Unit (VLU)
The Contractor shall provide a VLU that has, the following specifications at a minimum, but not limited to:
• The VLU shall be the central processing device and data storage device installed onboard for all vehicles and powered by the vehicle’s electrical system • The VLU shall be integrated with the onboard equipment on each vehicle that provides route/ destination announcements and onboard visual signs with both audible and textual messages, etc.
• The VLU shall provide the interface/transmission of data to and from all subsystems such as audio announcements, PIDS, onboard visual signs, etc.
• The GPS receiver shall be integrated into the VLU to provide time and location data for AVL functions
• Multiple port selections
• Data storage capacity shall be sufficient to store the complete current and pending route schedules, announcement files, and event messages
• System configuration settings related specifically to a vehicle shall be stored in a vehicle configuration module such that the VLU unit can be swapped out and vehicle information not lost. • The VLU shall be provisioned for future expansion and interoperability
Mobile Data Terminal (MDT)
The Contractor shall provide a MDT that has, the following specifications at a minimum, but not limited to:
• The MDT shall automatically engage when the vehicle is started, and shut down a programmable amount of time after the vehicle is turned off.
• The MDT shall store the most recent location received from the GPS receiver, so that if the GPS receiver is not able to report the location, the last known good location will remain available. • The MDT shall incorporate a color graphical screen capable of displaying fonts of variable size and can change colors between day and night or has automatic brightness controls. • The MDT shall have capabilities to show the Operator turn by turn directions. • The MDT shall have the capabilities to show the Operator if they are ahead of schedule or behind schedule in number of minutes and or color code.
• The MDT shall be equipped with appropriate functional buttons (physical and or touch screen) capable of controlling other onboard systems (e.g. NGFS, head signs, etc.). • The MDT display shall be readable by the Operator from the seated position under the full range of ambient illumination conditions, through the incorporation of such measures as driver - operated brightness/contrast control, anti-glare coating and adjustable orientation mounting. • The MDT shall be capable of providing unique audio tones to alert the Operator of incoming messages.
The MDT shall be capable of, but not limited to, displaying the foll owing onboard information and interface to onboard systems during operation of the vehicle:
• Data Messaging
• Emergency Alarm
• Head Sign Control
• Logon
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• Maintenance
• NGFS- Mobile Validator (Ability to show fare on MDT, accept and cancel transaction from MDT etc.)
• Route Guidance
• Schedule Adherence
• Stop Announcement
• Talk
• Transfer Notification
• Trip/Schedule Display Control
• The MDT shall support en route changes of the assigned Operators for cases such as mechanical breakdowns, Operator substitutions, etc.
• The MDT shall enable Operators to send user-friendly, easy to use predefined text data messages to dispatch with a minimum of interaction e.g. wheel chair loaded, bike loaded etc. These text messages shall be user configurable by system administrator an d flexible in the way they are ordered on the MDT.
• Operators shall be able to review recently received messages at any time with a minimum of interaction. The MDT shall be capable of retaining at least the last (10) ten received messages for Operator review. The received messages shall be ordered chronologically with the most recently received message presented first.
• When the vehicle receives a data message, the Operator shall be notified by a mutable audio tone signal and the message shall be available for display on the MDT within one second after it is received.
• The MDT shall provide for automatic control of all destination signs in vehicles. The destination signs shall be automatically updated by the Operator at logon and at predefined points along each route (e.g., at the end of a trip). The points at which destination sign messages shall be automatically changed shall be configurable by MBL.
Covert Emergency Alarm
The Contractor shall provide a Covert Emergency Alarm (CEA) which will activate a silent alarm when an Operator presses a button in an inconspicuous location of the Operator‘s area. When engaged, the CEA shall include the following functionality, but not limited to:
• Issue an emergency alarm, including vehicle location, to the dispatch workstation • Discreetly display the CEA activation to the Operator • Send discrete visual signal to Operator when a dispatch workstation acknowledges receipt of CEA • Emergency Alarms shall have the highest priority of all data messages. • Cause exterior head signs to display an emergency message • A CEA event indication shall not be noticeable to passengers. • Update the vehicle location to the dispatch workstation no less than every (5) five seconds • Allow supervisor to override and disable a CEA using the dispatch workstation
Automatic Voice Annunciators
The Contractor shall provide an Automatic Voice Annunciator (AVA) system in each MBL vehicle that shall automatically audibly and visually announce stops and stop requests; and change onboard visu al signs.
The AVA system shall determine where or when to make stop announcements and onboard visual signs changes using AVL system data and pre-defined location or time parameters. Once the Operator is logged
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into the MDT, the AVA system shall be fully au tomatic requiring no driver interaction. The AVA system shall include interior and exterior speakers and all relevant equipment for audible announcements.
Destination Announcements
When a vehicle is approaching a stop, one or more announcements shall be made for approaching stop.
Requirements, capabilities, and features of the announcement system shall include but not limited to:
• Allow MBL administrators to configure announcements
• Destination description by street, intersection, location, or landmark • Disabling of exterior audio announcement by time of day, route and vehicle • Distance or time of announcement(s) prior to the stop • Multiple occurrences of announcement for a given stop, including upon arrival • Type of announcement (visual, interior audio, and/or exterior audio) by bus or trolley location • Allow Operator to disable AVA system in the event of malfunction • Allow Operator to manually invoke the pre-defined announcements • Automatically make other pre-defined announcements periodically or at pre-defined locations • Display time periodically or at pre-defined locations • If an unscheduled stop is made, continue to make correct next stop announcements • If vehicle goes off-route, disable announcements until vehicle returns to the assigned route • Include pre-defined announcements
• Make audio and visual “Stop Requested” announcements and clear when a door is opened • Make line and destination location announcements prior to and upon arriving at bus stops • Meet Americans with Disabilities Act (ADA) requirements for the bus stop announcements
Announcement Database
The AVA system shall include a database of audio and visual stop and other pre-defined announcements.
The database shall include necessary administrative tools for MBL to easily modify announcement parameters for individual stops including but not limited to announcement content, location, frequency, and type.
On-board Passenger Display Signs
The Proposer shall provide and install inside each vehicle:
• At least one electronic variable display sign for visual bus stop and other pre -defined announcements
• Conceal cable connections to the sign enclosure
• House visual signs in a vandal-resistant enclosure with a scratch resistant faceplate lens • Use text of sufficient size, brightness, contrast, and clarity to be readable by persons with normal vision from anywhere in the vehicle under typical day and night ambient lighting conditions
Yard Management System (YMS)
The Yard Management System shall maintain a MBL yard plan showing the current vehicle locations, IDs, availability status, and assignments by operator and run; and provide for vehicle status updates by the Maintenance Department. The yard plan and ve hicle status shall be available to the Dispatch Center