Exhibit F - Work Authorization Form
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.
2. TERM OF AGREEMENT
A. Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on July 17, 2024 and terminate on July 31, 2026.
B. After the Initial Term, the City reserves the right, at its sole discretion, to extend the term of this Agreement for up to one (1) additional one-year term through July 31, 2027 ("Option Period"), subject to the budget appropriation. See Exhibit E for Notice of Exercise of Option to Extend Agreement Form.
3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A within the time stated in Exhibit A. Time is of the essence.
4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City.
5. QUALIFICATIONS OF CONTRACTOR - STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and City expressly relies upon Contractor's representations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.
Agreement with Advanced Lighting Services, Inc.
Rev. 07-01-18
6. COMPENSATION AND PAYMENT
Contractor shall be paid in accordance with Exhibits B1 ("COMPENSATION") and B2 ("RATE SCHEDULE").
7. TERMINATION
A. Termination for Convenience. City shall have the right to terminate this Agreement, without cause or penalty, by giving not less than Thirty (30) days' prior written notice to Contractor.
B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to Contractor.
C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.
8. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.
Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.
9. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.
10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights to manage its employees in their performance of Services under this Agreement.
Agreement with Advanced Lighting Services, Inc.
Rev. 07-01-18
11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential.
12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.
13. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.
Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees to assist City in meeting City's reporting requirements to the State and other agencies with respect to Contractor's Services hereunder.
14. HOLD HARMLESS/INDEMNIFICATION
A. To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, Agreement with Advanced Lighting Services, Inc.
Rev. 07-01-18
liability, loss, cost, and/or expense or damage, including all costs and attorney's fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, in any manner arising from, or alleged to arise in whole or in part from, or in any way connected with the Services performed by Contractor pursuant to this Agreement - including claims of any kind by Contractor's employees or persons contracting with Contractor to perform any portion of the Scope of Services - and shall expressly include passive or active negligence by City connected with the Services. However, the obligation to indemnify shall not apply if such liability is ultimately adjudicated to have arisen through the sole active negligence or sole willful misconduct of City; the obligation to defend is not similarly limited.
B. Contractor's obligation to protect, defend, indemnify, and hold harmless in full City and City's employees, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against City (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.
C. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act ("Act") and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations·under the Act and will fully indemnify and hold harmless City for any penalties, fines, adverse rulings, or tax payments associated with Contractor's responsibilities under the Act.
15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.
16. WAIVER
Contractor agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither City's review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.
Agreement with Advanced Lighting Services, Inc.
Rev. 07-01-18
17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:
City of Santa Clara Department of Public Works - Facilities Attention: Ken Winland
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected]
And to Contractor addressed as follows:
Advanced Lighting Services, Inc.
Attention: David Taylor
6681 Sierra Lane
Suite A
Dublin, CA 94568
and by e-mail at [email protected]
The workday the e-mail was sent shall control the date notice was deemed given.
An e-mail transmitted after 1 :00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.
18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to "The Code of the City of Santa Clara, California" ("SCCC"). In particular, Contractor's attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with City's Ethical Standards (http://santaclaraca.gov/home/showdocument?id=58299).
19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and Agreement with Advanced Lighting Services, Inc.
Rev. 07-01-18
Page6
following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.
20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.
21. NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City's name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of City.
22. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.
23. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect.
24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.
25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.
Agreement with Advanced Lighting Services, Inc.
Rev. 07-01-18
The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives.
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Fortn:
>J-,,kv--~
GLEN R. GOOG!NS
City Attorney
"Cl'fY"
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone : (408) 615-2210
Fax: (408) 241--6771
ADVANCED LIGHTING SERVICES, INC.
a California corporation
Dated: d~J{g
By (Signature) : _____ __ O ________ _
Name: B. David Taylor
Title: President
6681 Sierra Lane
Principal Place of Suite A
Business Address : Dublin CA 94568 --~--------- -----
Em a i I Address: admin@advancedlightingservices .com
Telephone : (925) 829-7801 I (510) 773-8973
Fax: (925) 829-7805
"CONTRACTOR"
Agreement with Advanced Lighting Services, Inc.
Rev. 07-01 -18
---- - ------------- ---
------- - - -
EXHIBIT A
SCOPE OF SERVICES
The Services to be performed for the City by the Contractor under this Agreement are set forth below.
The Scope of Services, including Exhibit A, Contractor's proposal response dated April 12, 2024 provide context, supplemental information, and are incorporated by reference to the extent not inconsistent with the Agreement.
1. GENERAL
1.1. Contractors shall provide light-emitting diode (LED) lighting retrofit or replacement services for buildings citywide, including all labor, materials, equipment, and tools required, in support of the Department of Public Works Facilities Division (Facilities).
1.2. Contractor shall work corroboratively with staff to plan and implement the retrofit or replacement schedule. The City may add or remove buildings or areas at its discretion.
2. BACKGROUND
2.1. California Bill AB2208, signed into law in September 2022, bans the sale and distribution of fluorescent bulbs in California starting from January 1, 2024.
The bill specifically targets screw or *bayonet base type compact fluorescent lamps, with a phase-out of pin-base type compact fluorescent lamps starting from January 1, 2025.
2.2. The City has numerous office buildings with 2', 4' and 8' fluorescent t-8 fixtures that will need to be retrofitted or replaced. These buildings such as City Hall, Libraries, Police Department, Senior Center, Corporation Yard, etc. will include some public areas and some office areas.
3. GENERAL SCOPE REQUIREMENTS
3.1. Contractor shall provide services to (1) retrofit existing fixtures with LED or (2) replace fixture with new LED fixture that is like size, shape, and finish. All lighting must be an equivalent or greater than existing lighting output.
3.2. Upon execution of contract Contractor shall schedule a project kickoff meeting with the City Project Manager, which will include the following at a minimum:
3.2.1. Project plan review
3.2.2. Meeting schedule for project
3.2.3. Identify all key project personnel for Contractor and City Agreement with Advanced Lighting Services, lnc./Exhibit A-Scope of Services Rev. 07-01-18
3.2.4. Establish lines of communication
3.2.5. Schedule time for site walks to complete and provide an assessment of lighting fixtures at City. sites to confirm light retrofit and/or light fixture replacement count data. The assessment shall be completed and approved by the City prior to work commencing.
3.3. Contractor shall coordinate all activities regarding rebates with Silicon Valley Power.
3.4. The City will not pay for trip charges or fuel surcharges.
3.5. Contractor shall comply with all applicable federal, state, and local statutes, instructions, guidelines, regulations, policies, and rules (including all changes and amendments), related to services specified herein.
3.6. All work shall be performed in a professional manner within the standards of the industry and original equipment manufacturer of equipment, using proper equipment, methods, materials, and personnel. Damage to City property resulting from the services provided shall be repaired or items replaced by Contractor to the satisfaction of the City at no expense to the City in a timely manner.
3. 7. Contractor shall be responsible for all training and certification of their staff engaged in the performance of the services specified herein.
3.8. All contractor vehicles shall contain signage that includes contractor's company name on both left and right sides of each vehicle. The markings shall be sufficient for City staff to clearly identify contractor when they are on City property.
3.9. Contractor shall adhere to all applicable local, state, and federal health and safety polices and regulations when performing services for the City of Santa Clara.
4. WORK AUTHORIZATION PROCESS
Contractor acknowledges that Contractor is one of two firms selected to the perform the Services, pursuant to two (2) separate agreements (collectively, the "LED Lighting Retrofit and Replacement Project Agreements"). Specific will be assigned as set forth below.
4.1. Assessment and Proposal: After completion of a site assessment Contractor shall prepare and provide to the City Project Manager a site assessment report and proposal to complete the work. The proposal shall include:
Agreement with Advanced Lighting Services, lnc./Exhibit A-Scope of Services Rev. 07-01-18
Page2
4.1.1. A work plan that includes a detailed description by task of the services to be performed including a breakout of fixtures that require replacement or retrofit,
4.1.2. A project timeline/schedule with discussion on any activities that may impact the project timeline/schedule.
4.1.3. A list of City responsibilities.
4.1.4. A final acceptance criteria.
4.1.5. An itemized cost proposal showing:
4.1.5.1. Hours and hourly rates as listed in Exhibit 82.
4.1.5.2. Bulbs
4.1.5.3. Fixtures
4.1.5.4. Miscellaneous parts/materials
4.1.6. All submitted pricing shall be in accordance with the prices/rates authorized in Exhibit 82 of this Agreement and the Proposal shall include sufficient information for the City to determine the rates are in accordance with the Agreement.
4.1.7. Costs for any additional equipment, parts, or services required for the completion of the work as detailed in Contractor's proposal but not reflected in the Contractor's cost proposal shall be the responsibility of the Contractor and at no additional cost to the City.
4.2. Award of Work:
4.2.1. The City will review proposals received from both Contractors awarded LED Lighting Retrofit and Replacement Project Agreements.
4.2.2. Award will be based on the lowest total cost and most advantageous project timeline.
4.3. Work Authorization
4.3.1. If the completion of the work in the Proposal will not result in total costs (including all previously authorized work) exceeding the maximum compensation in Section 1 of Exhibit 81 of the Agreement, services may be authorized as set forth in this Section.
4.3.2. Work Authorization shall be issued in substantially the same format as Exhibit F. Each Work Authorization shall describe the work and deliverables the Contractor must provide, the time limit within the Agreement with Advanced Lighting Services, lnc./Exhibit A-Scope of Services Rev. 07-01-18
Contractor must complete the work and deliverables, the completion acceptance criteria, warranty provisions, and the compensation total for the work.
4.3.3. Subject to the terms and conditions of this Agreement Contractor and City will negotiate the specific scope and requirements of each Work Authorization. Upon execution by the Parties, the Work Authorization shall become an Approved Work Authorization.
4.3.4. Each Approved Work Authorization shall have a purchase order attached to it.
4.3.5. Only the City's Facilities Manager, Assistant Director of Public Works, or Director of Public Works may, on behalf of the City, execute a Work Authorization. Purchase orders are issued by the Finance Department.
4.3.6. Contractor shall not begin work and the City will not compensate the Contractor until the City has executed the Work Authorization for such work where applicable ("Approved Work Authorization") and issued a purchase order.
4.3.7. An Approved Work Authorization must be consistent with - and cannot alter - the terms and conditions of this Agreement. The terms and conditions of this Agreement shall prevail over any and all terms and conditions contained in an Approved Work Authorization - even if the Approved Work Authorization expressly states that it is intended to control. Any conflicting terms and conditions in an Approved Work Authorization are invalid and unenforceable.
4.4. Changes to Work Authorization
4.4.1. Contractor shall notify the City immediately when a situation occurs that may result in a change to the total project cost specific line items in an Approved Work Authorization or purchase order. Contractor shall provide the reason for the change specific to each Approved Work Authorization or purchase order.
4.4.2. If Contractor requires changes to a fixed price Work Authorization, Contractor shall only be permitted to request changes with justification such as additional scope requested by City or unanticipated field conditions. For such changes, Contractor shall submit justification demonstrating that changes in cost are associated with changes in scope. Contractor shall not be entitled to additional compensation for issues such as errors in calculation of original pricing, changes in staff, or other changes that are not directly related to changes requested by the City.
Agreement with Advanced Lighting Services, lnc./Exhibit A-Scope of Services Rev. 07-01-18
Page4
4.4.3. In the event that unanticipated site conditions or other issues result in costs that exceed the Approved Work Authorization or changes to line items in an Approved Work Authorization or purchase order, Contractor shall submit to the City an updated Proposal for review and approval from the City in advance of performing the work. The City will issue a new or amended Work Authorization or purchase order (as applicable) to authorize such additional Services. Each changed Work Authorization and purchase order shall amend the Services and be incorporated into the Services by reference.
4.5. Each Approved Work Authorization and purchase order shall be incorporated into the Agreement by reference and subject to the terms and conditions and the Services contained therein shall be included within the Services.
4.6. Proposals, pricing, and quotes are not confidential and will not be treated as confidential even if marked confidential when submitted.
4.7. Contractor shall not initiate work before a Work Authorization has been approved and/or a purchase order has been issued and the City has directed Contractor to perform Services.
5. STAFF QUALIFICATIONS
5.1. Contractor shall designate a project manager and an onsite supervisor to be assigned to the City and be available during the entire length of the contract.
The project manager shall serve as the City's main point of contact for all matters and shall obtain the City's Project Manager to use personnel that were not submitted. The City also reserves the right to request a different project manager and/or Contractor's personnel to be assigned at any time during the length of the contract.
5.2. All Contractor's personnel shall be fully trained and qualified to perform the services specified herein.
5.3. City reserves the right to conduct background checks on all employee's assigned to the City.
5.3.1. Additionally, there will be a separate background check for Contractor's employees assigned to sites for the Santa Clara Police Department (SCPD). This background check will be conducted by SCPD.
6. STORAGE FACILITIES, EQUIPMENT, AND SPARE MATERIALS
Contractor shall maintain adequate storage at their own facilities to perform this contract, including a sufficient stock of materials required to complete the project. The City will work with Contractor on potential storage solutions.
Agreement with Advanced Lighting Services, lnc./Exhibit A-Scope of Services Rev. 07-01-18
7. MEETINGS
Contractor shall be available to meet, when deemed necessary, with City staff at a mutually agreed upon time and place to review and discuss any items related to all work performed under this contract.
8. GENERAL REQUIREMENTS
Contractor shall provide seNices to (1) retrofit existing fixtures with LED (this option includes disconnecting the existing ballast) or (2) replace fixture with new LED fixture that is like size, shape, and finish. All lighting must be an equivalent or greater than existing lighting output.
9. WORKMANSHIP/PERFORMANCE
9.1. Contractor shall warrant all work provided against any defects in workmanship or product and shall satisfactorily correct, at no cost to the City, any such defect that may become apparent within a period of one year after completion of work. The warranty period shall commence upon date of acceptance by the City.
9.1.1. In the event of failure, Contractor shall respond within 24 hours of City contacting Contractor.
9.1.2. Warranty shall cover all labor, travel, parts, shipping, etc.
10. WARRANTY REQUIREMENTS FOR PRODUCTS
10.1. The warranty period for all products shall be for a period of one (1) year, or within the manufacturers' warranty, whichever is the later period. The warranty period shall commence upon date of acceptance by the City.
10.2. Warranty shall cover all parts, shipping, travel, and labor. Warranty response and correction shall be a priority for the Contractor and issues addressed and completed within a reasonable time frame as agreed to by the City and Contractor.
11. REPORTING REQUIREMENTS
Contractors shall submit to the City a monthly activity report identifying all work completed and the locations of the work. The City may change reporting frequency, at its discretion.
Agreement with Advanced Lighting Services, lnc./Exhibit A-Scope of Services Rev. 07-01-18
Page6
1. MAXIMUM COMPENSATION
EXHIBIT 81
COMPENSATION
1.1. The maximum compensation shall be as set forth in each Approved Work Authorization (Maximum Work Authorization Compensation). No services will be performed unless both Parties execute an Approved Work Authorization outlining the services requested and the compensation agreed for such services.
1.2. Contractor shall fully complete all work required by the Approved Work Authorization for no more than the maximum work authorization compensation.
1.3. City shall only be liable for charges expressly authorized in the Approved Work Authorization.
1.4. As specified in Section 4 of Exhibit A ("SCOPE OF SERVICES"), Contractor is one of two firms selected to perform the Services, pursuant to two (2) separate agreements (collectively, the "LED Lighting Retrofit and Replacement Project Agreements"). Under no circumstance shall the total compensation for all Approved Work Authorizations to both firms exceed the total compensation of $500,000 approved by City Council on July 16, 2024.
2. RATES
Compensation under each Work Authorization and/or purchase order shall be in accordance with the rates set forth herein.
2.1. Contractor shall submit proposals/invoice for all Services at the rates listed in Exhibit B2 ("Rate Schedule") herein.
2.2. Rates listed in Exhibit B2 are fully burdened and will remain fixed for the initial two-year term of the Agreement.
2.3. Rate Increase: Rate adjustments may be requested prior to one-year option to renew the contract after the initial term. Rate increase requests must be tied to prevailing wage, CPI, PPI, or relevant industry specific index. Rate adjustments are subject to City's approval.
3. INVOICE REQUIREMENTS
3.1. Contractor shall invoice the City at the completion of each project and in a format approved by the City. City shall pay Contractor within thirty (30) days of City's receipt of an approved invoice.
3.2. Invoice shall include at a minimum the following:
3.2.1. Approved Work Authorization Number
3.2.2. Date of Service
3.2.3. Project/Service Description
Agreement with Advanced Lighting Services, lnc./Exhibit B1-Compensation Rev. 07-01-18
3.2.4. 3.2.5.
3.2.6. 3.2.7.
3.2.8. Address of Serviced Location
Part Description
Unit Price/Hourly Rate
Quantity/Number of Hours
Etc.
Agreement with Advanced Lighting Services, lnc./Exhibit B1-Compensation Rev. 07-01-18
1. RATES
EXHIBIT 82
RATE SCHEDULE
1 . 1. Contractor shall charge, and the City shall pay for actual services rendered and authorized according to the process outlined in Section 4 of Exhibit A. The rates applicable for the services are listed below in Table B2-1.
1.2. In cases where services are required but not listed below, Contractor shall submit rates for approval but the City in advance, in writing before performing services. For avoidance of doubt, any changes to the rates in Table B2-1 must be authorized in accordance with Section 2.2 of Exhibit B1. Rate changes are not permitted as part of the Work Authorization process.
Table 82-1: Rates
Labor Cost for Lamp Retrofit
Description Labor Rate Per Bulb
2' Bulb $18.50
2' Bulb U Bend Bulb $18.50
3' Bulb $18.50
4' Bulb $18.50
8' Bulb $18.50
Labor Cost for Fixture Replacement
Description Labor Rate Per Bulb/Fixture
2' - 1 Bulb $165.00
2' - 2 Bulb $165.00
2' - 2 U Bend Bulb $165.00
3' - 1 Bulb $165.00
4' - 1 Bulb $165.00
4' - 2 Bulb $165.00
4' - 3 Bulb $165.00
4' - 4 Bulb $165.00
8' - 2 Bulb $165.00
Price for Bulbs and Other Items
Description Unit Price
2' Bulb $6.30
2' Bulb U Bend Bulb $29.50
3' Bulb $6.35
4' Bulb $5.85
8' Bulb $17.50
Sockets/Lamp Holders $2.80
2' Bulb Lamp Recvclina Fee $0.38
Agreement with Advanced Lighting Services, lnc./Exhibit 82-Rate Schedule Rev. 07-01-18
Description Unit Price
2' Bulb U Bend Bulb Lamp Recycling Fee
3' Bulb Lamp Recvclini:i Fee
4' Bulb Lamp Recycling Fee
8' Bulb Lamp Recycling Fee
Keystone 2' Fixture Strip
Keystone 2' Fixture 2x2 U Bend
3' Fixture Strip
4' Fixture Strip 1 x4
8' Fixture Strip
Cost Markup % Miscellaneous Materials/Hardware
Description Markup%
Miscellaneous Hardware
Miscellaneous Materials
Hourly Rate for As-Needed Services
Description Hourly Rate
Standard Rate
Agreement with Advanced Lighting Services, lnc./Exhibit 82-Rate Schedule Rev. 07-01-18
$1.75
$0.55
$0.75
$1.75
$38.00
$54.00
$38.00
$58.00
$74.00
15%
10%
$198.00
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting the Contractor's indemnification of the City, and prior to commencing any of the Services required under this Agreement, the Contractor shall provide and maintain in full force and effect, at its sole cost and expense, the following insurance policies with at least the indicated coverages, provisions and endorsements:
A. COMMERCIAL GENERAL LIABILITY INSURANCE
1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products/Completed Operations Aggregate
$1,000,000 Personal Injury
2. Exact structure and layering of the coverage shall be left to the discretion of Contractor; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.
3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Contractor to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a "pay on behalf' basis with defense costs payable in addition to policy limits;
b. There shall be no cross liability exclusion which precludes coverage for claims or suits by one insured against another; and c. Coverage shall apply separately to each insured against whom a claim is made or a suit is brought, except with respect to the limits of liability.
B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01 with policy limits a minimum limit of not less than one million dollars ($1,000,000) each accident using, or providing coverage at least as broad as, Insurance Services Office form CA 00 01. Liability coverage sh.all apply to all owned, non-owned and hired autos.
In the event that the Work being performed under this Agreement involves transporting of hazardous or regulated substances, hazardous or regulated Agreement with Advanced Lighting Services, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
wastes and/or hazardous or regulated materials, Contractor and/or its subcontractors involved in such activities shall provide coverage with a limit of two million dollars ($2,000,000) per accident covering transportation of such materials by the addition to the Business Auto Coverage Policy of Environmental Impairment Endorsement MCS90 or Insurance Services Office endorsement form CA 99 48, which amends the pollution exclusion in the standard Business Automobile Policy to cover pollutants that are in or upon, being transported or towed by, being loaded onto, or being unloaded from a covered auto.
C. WORKERS' COMPENSATION
1. Workers' Compensation Insurance Policy as required by statute and employer's liability with limits of at least one million dollars ($1,000,000) policy limit Bodily Injury by disease, one million dollars ($1,000,000) each accident/Bodily Injury and one million dollars ($1,000,000) each employee Bodily Injury by disease.
2. The indemnification and hold harmless obligations of Contractor included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation or benefit payable by or for Contractor or any subcontractor under any Workers' Compensation Act(s), Disability Benefits Act(s) or other employee benefits act(s).
3. This policy must include a Waiver of Subrogation in favor of the City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents.
D. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and each umbrella or excess policy.
1. Additional Insureds. City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents are hereby added as additional insureds in respect to liability arising out of Contractor's work for City, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85 or the combination of CG 20 10 03 97 and CG 20 37 10 01, or its equivalent.
2. Primary and non-contributing. Each insurance policy provided by Contractor shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution from, any other insurance which the Indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance Indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Contractor's insurance.
Agreement with Advanced Lighting Services, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
3. Cancellation.
a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non-payment of premiums shall be effective until written notice has been given to City at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non-renewal.
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to City at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least thirty (30) days prior to the effective date of non renewal.
4. Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through D of this Exhibit C, above.
E. ADDITIONAL INSURANCE RELATED PROVISIONS
Contractor and City agree as follows:
1. Contractor agrees to ensure that subcontractors, and any other party involved with the Services who is brought onto or involved in the performance of the Services by Contractor, provide the same minimum insurance coverage required of Contractor, except as with respect to limits. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Agreement. Contractor agrees that upon request by City, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to City for review.
2. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
Agreement with Advanced Lighting Services, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
3. The City reserves the right to withhold payments from the Contractor in the event of material noncompliance with the insurance requirements set forth in this Agreement.
F. EVIDENCE OF COVERAGE
Prior to commencement of any Services under this Agreement, Contractor, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance coverage shall be maintained with insurers, and under forms of policies, satisfactory to City and as described in this Agreement. Contractor shall file with the City all certificates and endorsements for the required insurance policies for City's approval as to adequacy of the insurance protection.
G. EVIDENCE OF COMPLIANCE
Contractor or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to City, or its representative as set forth below, at or prior to execution of this Agreement.
Upon City's request, Contractor shall submit to City copies of the actual insurance policies or renewals or replacements. Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to City pursuant to this Agreement shall be emailed to:
[email protected]
Or mailed to:
EBIX Inc.
City of Santa Clara Department of Public Works - Facilities Division P.O. Box 100085- S2
Duluth, GA 30096
Telephone number: 951-766-2280
Fax number: 770-325-0409
H. QUALIFYING INSURERS
All of the insurance companies providing insurance for Contractor shall have, and provide written proof of, an A. M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the City or its insurance compliance representatives.
Agreement with Advanced Lighting Services, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
Page4
EXHIBIT D
LABOR COMPLIANCE ADDENDUM
This Agreement is subject to the requirements of California Labor Code section 1720 et seq. requiring the payment of prevailing wages, the training of apprentices, and compliance with other applicable requirements.
I. Prevailing Wage Requirements
1. Contractor shall be obligated to pay not less than the General Prevailing Wage Rate, which can be found at www.dir.ca.gov and are on file with the City Clerk's office, which shall be available to any interested party upon request. Contractor is also required to have a copy of the applicable wage determination posted and/or available at each job site.
2. Specifically, contractors are reminded of the need for compliance with Labor Code Section 1774-1775 (the payment of prevailing wages and documentation of such), Section 1776 (the keeping and submission of accurate certified payrolls) and 1777.5 in the employment of apprentices on public works projects. Further, overtime must be paid for work in excess of 8 hours per day or 40 hours per week pursuant to Labor Code Section 1811-1813.
3. Special prevailing wage rates generally apply to work performed on weekends, holidays and for certain shift work. Depending on the location of the project and the amount of travel incurred by workers on the project, certain travel and subsistence payments may also be required.
Contractors and subcontractors are on notice that information about such special rates, holidays, premium pay, shift work and travel and subsistence requirements can be found at www.dir.ca.gov.
4. Only bona fide apprentices actively enrolled in a California Division of Apprenticeship Standards approved program may be employed on the project as an apprentice and receive the applicable apprenticeship prevailing wage rates. Apprentices who are not properly supervised and employed in the appropriate ratio shall be paid the full journeyman wages for the classification of work performed.
5. As a condition to receiving progress payments, final payment and payment of retention on any and all projects on which the payment of prevailing wages is required, Contractor agrees to present to City, along with its request for payment, all applicable and necessary certified payrolls (for itself and all applicable subcontractors) for the time period covering such payment request. The term "certified payroll" shall include all required documentation to comply with the mandates set forth in Labor Code Section 1720 et seq, as well as any additional documentation requested by the City or its designee including, but not limited to: certified Agreement with Advanced Lighting Services, lnc./Exhibit D-Labor Compliance Rev. 07-01-18
payroll, fringe benefit statements and backup documentation such as monthly benefit statements, employee timecards, copies of wage statements and cancelled checks, proof of training contributions (CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.
6. In addition to submitting the certified payrolls and related documentation to City, Contractor and all subcontractors shall be required to submit certified payroll and related documents electronically to the California Departm~nt of Industrial Relations. Failure to submit payrolls to the DIR when mandated by the project parameters shall also result in the withholding of progress, retention and/or final payment.
7. No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1 (a)].
8. No contractor or subcontractor may be awarded a contract for public work on a public works project, unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. Contractors MUST be a registered "public works contractor" with the DIR AT THE TIME OF BID. Where the prime contract is less than $15,000 for maintenance work or less than $25,000 for construction alternation, demolition or repair work, registration is not required.
9. All contractors/subcontractors and related construction services subject to prevailing wage, including but not limited to: trucking, surveying and inspection work must be registered with the Department of Industrial Relations as a "public works contractor". Those you fail to register and maintain their status as a public works contractor shall not be permitted to perform work on the project.
10. Should any contractor or subcontractors not be a registered public works contractor and perform work on the project, Contractor agrees to fully indemnify the City for any fines assessed by the California Department of Industrial Relations against the City for such violation, including all staff costs and attorney's fee relating to such fine.
11. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
J. Audit Rights
All records or documents required to be kept pursuant to this Agreement to verify compliance with this Addendum shall be made available for audit at no cost to City, at any time during regular business hours, upon written request by the City Attorney, City Auditor, City Manager, or.a designated representative of any of these officers. Copies of such records or documents shall be provided to City for audit at City Hall when it is Agreement with Advanced Lighting Services, lnc./Exhibit D-Labor Compliance Rev. 07-01-18
practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records or documents shall be made available at Contractor's address indicated for receipt of notices in this Agreement.
K. Enforcement
1. City shall withhold any portion of a payment; including the entire payment amount, until certified payroll forms and related documentation are properly submitted, reviewed and found to be in full compliance. In the event that certified payroll forms do not comply with the requirements of Labor Code Section 1720 et seq., City may continue to hold sufficient funds to cover estimated wages and penalties under the Agreement.
2. Based on State funding sources, this project may be subject to special labor compliance requirements of Proposition 84.
3. The City is not obligated to make any payment due to Contractor until Contractor has performed all of its obligations under these provisions. This provision means that City can withhold all or part of a payment to Contractor until all required documentation is submitted. Any payment by the City despite Contractor's failure to fully perform its obligations under these provisions shall not be deemed to be a waiver of any other term or condition contained in this Agreement or a waiver of the right to withhold payment for any subsequent breach of this Addendum.
City or the California Department of Industrial Relations may impose penalties upon contractors and subcontractors for failure to comply with prevailing wage requirements.
These penalties are up to $200 per day per worker for each wage violation identified; $100 per day per worker for failure to provide the required paperwork and documentation requested within a 10-day window; and $25 per day per worker for any overtime violation.
Agreement with Advanced Lighting Services, lnc./Exhibit D-Labor Compliance Rev. 07-01-18
EXHIBIT E
NOTICE OF EXERCISE OF OPTION TO EXTEND AGREEMENT
AGREEMENT TITLE:
CONTRACTOR:
DATE:
Pursuant to Section _ of the Agreement referenced above, the City of Santa Clara hereby exercises its option to extend the term under the following provisions:
I OPTION NO. # of#
NEW OPTION TERM
I Begin date:
End date:
0 CHANGES IN RATE OF COMPENSATION
I Percentage change in CPI upon which adjustment is based:
Pursuant to Section _ of the Agreement the rates of compensation are hereby adjusted as follows:
(use attachment if necessary)
I MAXIMUM COMPENSATION for New Option Term:
For the option term exercised by this Notice, City shall pay Contractor an amount not to exceed the amount set forth above for Contractor's services and reimbursable expenses, if any. The undersigned signing on behalf of the City of Santa Clara hereby certifies that an unexpended appropriation is available for the term exercised by this Notice, and that funds are available as of the date of this signature.
Approved as to Form:
GLEN R. GOOGINS
City Attorney
Dated:
JOVAN D. GROGAN
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
Agreement with Advanced Lighting Services, lnc./Exhibit E-Notice of Option to Extend Agreement Page 1 Rev. 07-01-18
EXHIBIT F
SAMPLE WORK AUTHORIZATION FORM
This work authorization ("Work Authorization") is made pursuant to the Agreement for Service between the City of Santa Clara and Advanced Lighting Services, Inc. ("Agreement"). This Work Authorization is governed by the provisions of the Agreement and is hereby incorporated into that Agreement by reference. All Services shall be using the terms and rates included in the Agreement. In the event of any inconsistency between the terms and conditions of the Work Authorization and the Agreement, the terms and conditions of the Agreement shall govern and control.
PART A: GENERAL INFORMATION
WORK AUTHORIZATION D Original
NUMBER: D First Revised
Contract No. D Second Revised
D Other
Contractor Name/Address:
Expiration Date of Agreement:
Contractor's Project Manager: Name: Email:
City's Project Manager Name: Email:
Period of Performance for this Start Date: Expected Completion Date:
Work Order:
Maximum Compensation for this Work Authorization
Contractor Representative Name (Print)
Contractor Representative Signature
Contractor Representative Signature Date
City Project Manager Name (Print)
Authorized City Representative Print)
City Representative Signature
City Representative Signature Date
* Authorized Citv Representatives include Public Works Facilities Manaqer, Public Works Director Agreement with Advanced Lighting Services, lnc./Exhibit F-Work Authorization Form Rev. 07-01-18
PART 8: SERVICES TO BE PERFORMED
1. REVISED WORK AUTHORIZATION
0 No
D If yes, provide a brief description of the change(s).
2. SCOPE OF SERVICES TO BE PERFORMED
The Contractor shall perform the service(s) described below in accordance with all of the terms and conditions of the Agreement. (Insert a detailed Scope of Services below or attach as a separate file.) Scope of Services and cost proposal shall meet all of the provisions of Exhibit A and Exhibits B1 and B2.
Agreement with Advanced Lighting Services, lnc./Exhibit F-Work Authorization Form Rev. 07-01-18
3. COMPENSATION
a. Basis of Compensation: D Time & Materials D Fixed Fee b. Payment Schedule:
D Monthly D Completion of Deliverable/Milestone ~ Completion of Services
c. Payment Terms. See Exhibit B1 for payment of terms.
4. ACCEPTANCE CERTIFICATE
D Acceptance Certificate not required.
D Acceptance Certificate required.
Agreement with Advanced Lighting SeNices, lnc./Exhibit F-Work Authorization Form Rev. 07-01-18
EBIX Insurance No. S200005416
AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
AMERICAN POWER SOLUTIONS, INC.
PREAMBLE
This Agreement is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and American Power Solutions, Inc., a California corporation, (Contractor). City and Contractor may be referred to individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
RECITALS
A. City desires to secure the services more fully described in this Agreement, at Exhibit A, entitled "Scope of Services";
B. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of City; and,
C. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.
The Parties agree as follows:
AGREEMENT TERMS AND CONDITIONS
1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between City and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:
Exhibit A - Scope of Services
Exhibit B1 - Compensation
Exhibit B2 - Rate Schedule
Exhibit C - Insurance Requirements
Exhibit D - Labor Compliance Addendum
Exhibit E - Notice of Exercise of Option to Extend Agreement Form Agreement with American Power Solutions
Rev. 07-01-18
Exhibit F - Work Authorization Form
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.
2. TERM OF AGREEMENT
A. Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the Initial Term of this Agreement shall begin on July 17, 2024 and terminate on July 31, 2026.
B. After the Initial Term, the City reserves the right, at its sole discretion, to extend the term of this Agreement for up to one (1) additional one-year term through July 31, 2027 ("Option Period"), subject to the budget appropriation. See Exhibit E for Notice of Exercise of Option to Extend Agreement Form.
3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A and within the time stated in Exhibit A. Time is of the essence.
4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City.
5. QUALIFICATIONS OF CONTRACTOR - ST AND ARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and City expressly relies upon Contractor's representations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.
Agreement with American Power Solutions
Rev. 07-01-18
6. COMPENSATION AND PAYMENT
Contractor shall be paid in accordance with Exhibits B1 ("COMPENSATION") and B2 ("RATE SCHEDULE").
7. TERMINATION
A. Termination for Convenience. City shall have the right to terminate this Agreement, without cause or penalty, by giving not less than Thirty (30) days' prior written notice to Contractor.
B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to Contractor.
C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.
8. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.
Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.
9. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.
10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent" contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights to manage its employees in their performance of Services under this Agreement.
Agreement with American Power Solutions
Rev. 07-01-18
11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deeme_d confidential.
12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.
13. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.
Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees to assist City in meeting City's reporting requirements to the State and other agencies with respect to Contractor's Services hereunder.
14. HOLD HARMLESS/INDEMNIFICATION
A. To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, Agreement with American Power Solutions
Rev. 07-01-18
Page4
liability, loss, cost, and/or expense or damage, including all costs and attorney's fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, in any manner arising from, or alleged to arise in whole or in part from, or in any way connected with the Services performed by Contractor pursuant to this Agreement - including claims of any kind by Contractor's employees or persons contracting with Contractor to perform any portion of the Scope of Services - and shall expressly include passive or active negligence by City connected with the Services. However, the obligation to indemnify shall not apply if such liability is ultimately adjudicated to have arisen through the sole active negligence or sole willful misconduct of City; the obligation to defend is not similarly limited.
B. Contractor's obligation to protect, defend, indemnify, and hold harmless in full City and City's employees, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against City (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.
C. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act ("Act") and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations under the Act and will fully indemnify and hold harmless City for any penalties, fines, adverse rulings, or tax payments associated with Contractor's responsibilities under the Act.
15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.
16. WAIVER
Contractor agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither City's review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.
Agreement with American Power Solutions
Rev. 07-01-18
Page5
17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:
City of Santa Clara Department of Public Works - Facilities Attention: Ken Winland
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected]
And to Contractor addressed as follows:
American Power Solutions
Attention: Charleen White
14355. Industry Circle
La Mirada, CA 90638
and by e-mail at [email protected]
The workday the e-mail was sent shall control the date notice was deemed given.
An e-mail transmitted after 1 :00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.
18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to "The Code of the City of Santa Clara, California" ("SCCC"). In particular, Contractor's attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with City's Ethical Standards (http://santaclaraca.gov/home/showdocument?id=58299).
19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and Agreement with American Power Solutions
Rev. 07-01-18
Page6
following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.
20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.
21. NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City's name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of City.
22. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.
23. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect.
24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.
25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.
Agreement with American Power Solutions
Rev. 07-01-18
The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives.
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form :
;t',~ A.r
Dated: __ 7~/ _i"_/_/_-z._'I _____ _
GLEN R. GOGGINS
City Attorney ~ ;:n:;
"CITY"
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
AMERICAN POWER SOLUTIONS, INC.
a California corporation
Dated: ~07/16/ 4 ....-:::::::::
By (Signature): ---------------Name: Peter Yoon
Title: President
Principal Place of 14355 Industry Circle
Business Address: La Mirada, CA 90638
Email Address: [email protected]
Telephone : (714) 626-0300
Fax: (714) 626-0200
Agreement with American Power Solutions
Rev. 07-01 -18
"CONTRACTOR"
EXHIBIT A
SCOPE OF SERVICES
The Services to be performed for the City by the Contractor under this Agreement are set forth below.
The Scope of Services, including Exhibit A, Contractor's proposal response dated April 5, 2024 provide context, supplemental information, and are incorporated by reference to the extent not inconsistent with the Agreement.
1. GENERAL
1.1. Contractors shall provide light-emitting diode (LED) lighting retrofit or replacement services for buildings citywide, including all labor, materials, equipment, and tools required, in support of the Department of Public Works Facilities Division (Facilities).
1.2. Contractor shall work with City staff to plan and implement the retrofit or replacement schedule. The City may add or remove buildings or areas at its discretion.
2. BACKGROUND
2.1. California Bill AB2208, signed into law in September 2022, bans the sale and distribution of fluorescent bulbs in California starting from January 1, 2024. The bill specifically targets screw or *bayonet base type compact fluorescent lamps, with a phase-out of pin-base type compact fluorescent lamps starting from January 1, 2025.
2.2. The City has numerous office buildings with 2', 4' and 8' fluorescent t-8 fixtures that will need to be retrofitted or replaced. These buildings such as City Hall, Libraries, Police Department, Senior Center, Corporation Yard, etc. will include some public areas and some office areas.
3. GENERAL SCOPE REQUIREMENTS
3.1. Contractor shall provide services to (1) retrofit existing fixtures with LED or (2) replace fixture with new LED fixture that is like size, shape, and finish. All lighting must be an equivalent or greater than existing lighting output.
3.2. Upon execution of contract Contractor shall schedule a project kickoff meeting. with the City Project Manager, which will include the following at a minimum:
3.2.1. Project plan review
3.2.2. Meeting schedule for project
3.2.3. Identify all key project personnel for Contractor and City Agreement with American Power Solutions, lnc./Exhibit A-Scope of Services Rev. 07-01-18
3.2.4. Establish lines of communication
3.2.5. Schedule time for site walks to complete and provide an assessment of lighting fixtures City sites to confirm light retrofit and/or light fixture replacement count data. The assessment shall be completed and approved by the City prior to work commencing.
3.3. Contractor shall coordinate all activities regarding rebates with Silicon Valley Power.
3.4. The City will not pay for trip charges or fuel surcharges.
3.5. Contractor shall comply with all applicable federal, state, and local statutes, instructions, guidelines, regulations, policies, and rules (including all changes and amendments), related to services specified herein.
3.6. All work shall be performed in a professional manner within the standards of the industry and original equipment manufacturer of equipment, using proper equipment, methods, materials, and personnel. Damage to City property resulting from the services provided shall be repaired or items replaced by Contractor to the satisfaction of the City at no expense to the City in a timely manner.
3. 7. Contractor shall be responsible for all training and certification of their staff engaged in the performance of the services specified herein.
3.8. All contractor vehicles shall contain signage that includes contractor's company name on both left and right sides of each vehicle. The markings shall be sufficient for City staff to clearly identify contractor when they are on City property.
3.9. Contractor shall adhere to all applicable local, state, and federal health and safety polices and regulations when performing services for the City of Santa Clara.
4. WORK AUTHORIZATION PROCESS
Contractor acknowledges that Contractor is one of two firms selected to the perform the Services, pursuant to two (2) separate agreements (collectively, the "LED Lighting Retrofit and Replacement Project Agreements"). Specific will be assigned as set forth below.
4.1. Assessment and Proposal: After completion of a site assessment Contractor shall prepare and provide to the City Project Manager a site assessment report and proposal to complete the work. The proposal shall include:
Agreement with American Power Solutions, lnc./Exhibit A-Scope of Services Rev. 07-01-18
4.1.1. A work plan that includes a detailed description by task of the services to be performed including a breakout of fixtures that require replacement or retrofit,
4.1.2. A project timeline/schedule with discussion on any activities that may impact the project timeline/schedule.
4.1.3. A list of City responsibilities.
4.1.4. A final acceptance criteria.
4.1.5. An itemized cost proposal showing:
4.1.5.1. Hours and hourly rates as listed in Exhibit B2.
4.1.5.2. Bulbs
4.1.5.3. Fixtures
4.1.5.4. Miscellaneous parts/materials
4.1.6. All submitted pricing shall be in accordance with the prices/rates authorized in Exhibit B2 of this Agreement and the Proposal shall include sufficient information for the City to determine the rates are in accordance with the Agreement.
4.1.7. Costs for any additional equipment, parts, or services required for the completion of the work as detailed in Contractor's proposal but not reflected in the Contractor's cost proposal shall be the responsibility of the Contractor and at no additional cost to the City.
4.2. Award of Work:
4.2.1.1. The City will review proposals received from both Contractors awarded LED Lighting Retrofit and Replacement Project
Agreements.
4.2.1.2. Award will be based on the lowest total cost and most advantageous project timeline.
4.3. Work Authorization
4.3.1. If the completion of the work in the Proposal will not result in total costs (including all previously authorized work) exceeding the maximum compensation in Section 1 of Exhibit B1 of the Agreement, services may be authorized as set forth in this Section.
4.3.2. Work Authorization shall be issued in substantially the same format as Exhibit F. Each Work Authorization shall describe the work and Agreement with American Power Solutions, lnc./Exhibit A-Scope of Services Rev. 07-01-18
deliverables the Contractor must provide, the time limit within the Contractor must complete the work and deliverables, the completion acceptance criteria, warranty provisions, and the compensation total for the work.
4.3.3. Subject to the terms and conditions of this Agreement Contractor and City will negotiate the specific scope and requirements of each Work Authorization. Upon execution by the Parties, the Work Authorization shall become an Approved Work Authorization.
4.3.4. Each Approved Work Authorization shall have a purchase order attached to it.
4.3.5. Only the City's Facilities Manager, Assistant Director of Public Works, or Director of Public Works may, on behalf of the City, execute a Work Authorization. Purchase orders are issued by the Finance Department.
4.3.6. Contractor shall not begin work and the City will not compensate the Contractor until the City has executed the Work Authorization for such work where applicable ("Approved Work Authorization") and issued a purchase order.
4.3.7. An Approved Work Authorization must be consistent with - and cannot alter - the terms and conditions of this Agreement. The terms and conditions of this Agreement shall prevail over any and all terms and conditions contained in an Approved Work Authorization - even if the Approved Work Authorization expressly states that it is intended to control. Any conflicting terms and conditions in an Approved Work Authorization are invalid and unenforceable.
4.4. Changes to Work Authorization
4.4.1. Contractor shall notify the City immediately when a situation occurs that may result in a change to the total project cost specific line items in an Approved Work Authorization or purchase order. Contractor shall provide the reason for the change specific to each Approved Work Authorization or purchase order.
4.4.2. If Contractor requires changes to a fixed price Work Authorization, Contractor shall only be permitted to request changes with justification such as additional scope requested by City or unanticipated field conditions. For such changes, Contractor shall submit justification demonstrating that changes in cost are associated with changes in scope. Contractor shall not be entitled to additional compensation for issues such as errors in calculation of original pricing, changes in staff, or other changes that are not directly related to changes requested by the City.
Agreement with American Power Solutions, lnc./Exhibit A-Scope of Services Rev. 07-01-18
Page4
4.4.3. In the event that unanticipated site conditions or other issues result in costs that exceed the Approved Work Authorization or changes to line items in an Approved Work Authorization or purchase order, Contractor shall submit to the City an updated Proposal for review and approval from the City in advance of performing the work. The City will issue a new or amended Work Authorization or purchase order (as applicable) to authorize such additional Services. Each changed Work Authorization and purchase order shall amend the Services and be incorporated into the Services by reference.
4.5. Each Approved Work Authorization and purchase order shall be incorporated into the Agreement by reference and subject to the terms and conditions and the Services contained therein shall be included within the Services.
4.6. Proposals, pricing, and quotes are not confidential and will not be treated as confidential even if marked confidential when submitted.
4.7. Contractor shall not initiate work before a Work Authorization has been approved and/or a purchase order has been issued and the City has directed Contractor to perform Services.
5. STAFF QUALIFICATIONS
5.1. Contractor shall designate a project manager and an onsite supervisor to be assigned to the City and be available during the entire length of the contract.
The project manager shall serve as the City's main point of contact for all matters and shall obtain the City's Project Manager to use personnel that were not submitted. The City also reserves the right to request a different project manager and/or Contractor's personnel to be assigned at any time during the length of the contract.
5.2. All Contractor's personnel shall be fully trained and qualified to perform the services specified herein.
5.3. City reserves the right to conduct background checks on all employee's assigned to the City.
5.3.1. Additionally, there will be a separate background check for Contractor's employees assigned to sites for the Santa Clara Police Department (SCPD). This background check will be conducted by SCPD.
6. STORAGE FACILITIES, EQUIPMENT, AND SPARE MATERIALS
Contractor shall maintain adequate storage at their own facilities to perform this contract, including a sufficient stock of materials required to complete the project. The City will work with Contractor on potential storage solutions.
Agreement with American Power Solutions, lnc./Exhibit A-Scope of Services Rev. 07-01-18
7. MEETINGS
Contractor shall be available to meet, when deemed necessary, with City staff at a mutually agreed upon time and place to review and discuss any items related to all work performed under this contract.
8. GENERAL REQUIREMENTS
Contractor shall provide services to (1) retrofit existing fixtures with LED (this option includes disconnecting the existing ballast) or (2) replace fixture with new LED fixture that is like size, shape, and finish. All lighting must be an equivalent or greater than existing lighting output.
9. WORKMANSHIP/PERFORMANCE
9.1. Contractor shall warrant all work provided against any defects in workmanship or product and shall satisfactorily correct, at no cost to the City, any such defect that may become apparent within a period of one year after completion of work.
The warranty period shall commence upon date of acceptance by the City.
9.1.1. In the event of failure, Contractor shall respond within 24 hours of City contacting Contractor.
9.1.2. Warranty shall cover all labor, ·travel, parts, shipping, etc.
10. WARRANTY REQUIREMENTS FOR PRODUCTS
10.1.The warranty period for all products shall be for a period of one (1) year, or within the manufacturers' warranty, whichever is the later period. The warranty period shall commence upon date of acceptance by the City.
10.2.Warranty shall cover all parts, shipping, travel, and labor. Warranty response and correction shall be a priority for the Contractor and issues addressed and completed within a reasonable time frame as agreed to by the City and Contractor.
11. REPORTING REQUIREMENTS
Contractors shall submit to the City a monthly activity report identifying all work completed and the locations of the work. The City may change reporting frequency, at its discretion.
Agreement with American Power Solutions, lnc./Exhibit A-Scope of Services Rev. 07-01-18
1. MAXIMUM COMPENSATION
EXHIBIT 81
COMPENSATION
1.1. The maximum compensation shall be as set forth in each Approved Work Authorization (Maximum Work Authorization Compensation). No services will be performed unless both Parties execute an Approved Work Authorization outlining the services requested and the compensation agreed for such services.
1.2. Contractor shall fully complete all work required by the Approved Work Authorization for no more than the maximum work authorization compensation.
1.3. City shall only be liable for charges expressly authorized in the Approved Work Authorization.
1.4. As specified in Section 4 of Exhibit A ("SCOPE OF SERVICES"), Contractor is one of two firms selected to perform the Services, pursuant to two (2) separate agreements (collectively, the "LED Lighting Retrofit and Replacement Project Agreements"). Under no circumstance shall the total compensation for all Approved Work Authorizations to both firms exceed the total compensation of $500,000 approved by City Council on July 16, 2024.
2. RATES
Compensation under each Work Authorization and/or purchase order shall be in accordance with the rates set forth herein.
2.1. Contractor shall submit Proposals invoice all Services at the rates listed in Exhibit B2 ("Rate Schedule") herein.
2.2. Rates listed in Exhibit B2 are fully burdened and will remain fixed for the initial two-year term of the Agreement.
2.3. Rate Increase: Rate adjustments may be requested prior to one-year option to renew the contract after the initial term. Rate increase requests must be tied to prevailing wage, CPI, PPI, or relevant industry specific index. Rate adjustments are subject to City's approval.
3. INVOICE REQUIREMENTS
3.1. Contractor shall invoice the City at the completion of each project and in a format approved by the City. City shall pay Contractor within thirty (30) days of City's receipt of an approved invoice.
3.2. Invoice shall include at a minimum the following:
3.2.1. Approved Work Authorization Number
3.2.2. Date of Service
Agreement with American Power Solutions, lnc./Exhibit 81-Compensation Rev. 07-01-18
3.2.3. 3.2.4.
3.2.5. 3.2.6.
3.2.7. 3.2.8.
Project/Service Description
Address of Serviced Location
Part Description
Unit Price/Hourly Rate
Quantity/Number of Hours
Etc.
Agreement with American Power Solutions, lnc./Exhibit 81-Compensation Rev. 07-01-18
1. RATES
EXHIBIT 82
RA TE SCHEDULE
1.1. Contractor shall charge, and the City shall pay for actual services rendered and authorized according to the process outlined in Section 4 of Exhibit A The rates applicable for the services are listed below in Table B2-1.
1.2. In cases where services are required but not listed below, Contractor shall submit rates for approval but the City in advance, in writing before performing services. For avoidance of doubt, any changes to the rates in Table B2-1 must be authorized in accordance with Section 2.2 of Exhibit B1. Rate changes are not permitted as part of the Work Authorization process.
Table 82-1: Rates
Labor Cost for Lamp Retrofit
Description Labor Rate Per Bulb
2' Bulb
2' Bulb U Bend Bulb
3' Bulb
4' Bulb
8' Bulb
Labor Cost for Fixture Replacement
Description Fixture Type Fixture Cost
2' - 1 Bulb 2ft Linear Strip $87.75
2' - 2 Bulb 2ft Vapor tiQht $106.60
2' - 2 Bulb 2ft Linear Strip $87.75
2' - 2 Bulb 2x2 Troffer $85.35
2' - 2 U Bend Bulb 2x2 Troffer $85.35
3' - 1 Bulb 3ft Linear Strip $92.95
4' - 1 Bulb 4ft Linear Strip $76.25
4' - 2 Bulb 4ft Linear Strip $76.25
4' - 2 Bulb 4ft Vapor TiQht $110.50
4' - 2 Bulb 4ft Linear Wrap $96.20
4' - 2 Bulb 2x4 Troffer $97.05
4' - 3 Bulb 2x4 Troffer $97.05
4' - 4 Bulb 2x4 Troffer $97.05
8' - 2 Bulb 8ft Linear Strip $128.25
Price for Bulbs and Other Items
Description Unit Price
2' Bulb
2' Bulb U Bend Bulb
3' Bulb
Agreement with American Power Solutions, lnc./Exhibit B2-Rate Schedule Rev. 07-01-18
$14.63
$34.44
$14.63
$13.85
$71.60
Labor Rate Per
Bulb/Fixture
$80.82
$92.50
$80.82
$102.79
$102.79
$82.89
$76.24
$76.24
$94.06
$88.36
$107.45
$107.45
$107.45
$129.71
$9.10
$15.60
$9.10
Description Unit Price
4' Bulb
8' Bulb
Cost Markup % Miscellaneous Materials
Description Markup%
Cost Markup $ for
Miscellaneous Materials
Hourly Rate for As-Needed Services
Description Hourly Rate
Standard Rate
Agreement with American Power Solutions, lnc./Exhibit B2-Rate Schedule Rev. 07-01-18
$7.15
$41.60
20%
$250.00
Page2
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting the Contractor's indemnification of the City, and prior to commencing any of the Services required under this Agreement, the Contractor shall provide and maintain in full force and effect, at its sole cost and expense, the following insurance policies with at least the indicated coverages, provisions and endorsements:
A. COMMERCIAL GENERAL LIABILITY INSURANCE
1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products/Completed Operations Aggregate
$1,000,000 Personal Injury
2. Exact structure and layering of the coverage shall be left to the discretion of Contractor; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.
3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Contractor to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a "pay on behalf' basis with defense costs payable in addition to policy limits;
b. There shall be no cross liability exclusion which precludes coverage for claims or suits by one insured against another; and c. Coverage shall apply separately to each insured against whom a claim is made or a suit is brought, except with respect to the limits of liability.
B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01 with policy limits a minimum limit of not less than one million dollars ($1,000,000) each accident using, or providing coverage at least as broad as, Insurance Services Office form CA 00 01. Liability coverage shall apply to all owned, non-owned and hired autos.
In the event that the Work being performed under this Agreement involves transporting of hazardous or regulated substances, hazardous or regulated Agreement with American Power Solutions, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
wastes and/or hazardous or regulated materials, Contractor and/or its subcontractors involved in such activities shall provide coverage with a limit of two million dollars ($2,000,000) per accident covering transportation of such materials by the addition to the Business Auto Coverage Policy of Environmental Impairment Endorsement MCS90 or Insurance Services Office endorsement form CA 99 48, which amends the pollution exclusion in the standard Business Automobile Policy to cover pollutants that are in or upon, being transported or towed by, being loaded onto, or being unloaded from a covered auto.
C. WORKERS' COMPENSATION
1. Workers' Compensation Insurance Policy as required by statute and employer's liability with limits of at least one million dollars ($1,000,000) policy limit Bodily Injury by disease, one million dollars ($1,000,000) each accident/Bodily Injury and one million dollars ($1,000,000) each employee Bodily Injury by disease.
2. The indemnification and hold harmless obligations of Contractor included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation or benefit payable by or for Contractor or any subcontractor under any Workers' Compensation Act(s), Disability Benefits Act(s) or other employee benefits act(s).
3. This policy must include a Waiver of Subrogation in favor of the City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents.
D. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and each umbrella or excess policy.
1. 2.
Additional Insureds. City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents are hereby added as additional insureds in respect to liability arising out of Contractor's work for City, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85 or the combination of CG 20 10 03 97 and CG 20 37 10 01, or its equivalent.
Primary and non-contributing. Each insurance policy provided by Contractor shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution from, any other insurance which the Indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance Indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Contractor's insurance.
Agreement with American Power Solutions, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
3. Cancellation.
a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non-payment of premiums shall be effective until written notice has been given to City at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non-renewal.
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to City at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least thirty (30) days prior to the effective date of non renewal.
4. Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through D of this Exhibit C, above.
E. ADDITIONAL INSURANCE RELATED PROVISIONS
Contractor and City agree as follows:
1. Contractor agrees to ensure that subcontractors, and any other party involved with the Services who is brought onto or involved in .the performance of the Services by Contractor, provide the same minimum insurance coverage required of Contractor, except as with respect to limits. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Agreement. Contractor agrees that upon request by City, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to City for review.
2. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
Agreement with American Power Solutions, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
3. The City reseNes the right to withhold payments from the Contractor in the event of material noncompliance with the insurance requirements set forth in this Agreement.
F. EVIDENCE OF COVERAGE
Prior to commencement of any SeNices under this Agreement, Contractor, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance coverage shall be maintained with insurers, and under forms of policies, satisfactory to City and as described in this Agreement. Contractor shall file with the City all certificates and endorsements for the required insurance policies for City's approval as to adequacy of the insurance protection.
G. EVIDENCE OF COMPLIANCE
Contractor or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance SeNices Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to City, or its representative as set forth below, at or prior to execution of this Agreement.
Upon City's request, Contractor shall submit to City copies of the actual insurance policies or renewals or replacements. Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to City pursuant to this Agreement shall be emailed to:
[email protected]
Or mailed to:
EBIX Inc.
City of Santa Clara Department of Public Works - Facilities Division P.O. Box 100085 - S2
Duluth, GA 30096
Telephone number: 951-766-2280
Fax number: 770-325-0409
H. QUALIFYING INSURERS
All of the insurance companies providing insurance for Contractor shall have, and provide written proof of, an A. M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the City or its insurance compliance representatives.
Agreement with A.merican Power Solutions, lnc./Exhibit C-lnsurance Requirements Rev. 07-01-18
Page4
EXHIBIT D
LABOR COMPLIANCE ADDENDUM
This Agreement is subject to the requirements of California Labor Code section 1720 et seq. requiring the payment of prevailing wages, the training of apprentices, and compliance with other applicable requirements.
I. Prevailing Wage Requirements
1. Contractor shall be obligated to pay not less than the General Prevailing Wage Rate, which can be found at www.dir.ca.gov and are on file with the City Clerk's office, which shall be available to any interested party upon request. Contractor is also required to have a copy of the applicable wage determination posted and/or available at each job site.
2. Specifically, contractors are reminded of the need for compliance with Labor Code Section 177 4-1775 (the payment of prevailing wages and documentation of such), Section 1776 (the keeping and submission of accurate certified payrolls) and 1777 .5 in the employment of apprentices on public works projects. Further, overtime must be paid for work in excess of 8 hours per day or 40 hours per week pursuant to Labor Code Section 1811-1813.
3. Special prevailing wage rates generally apply to work performed on weekends, holidays and for certain shift work. Depending on the location of the project and the amount of travel incurred by workers on the project, certain travel and subsistence payments may also be required.
Contractors and subcontractors are on notice that information about such special rates, holidays, premium pay, shift work and travel and subsistence requirements can be found at www.dir.ca.gov.
4. Only bona fide apprentices actively enrolled in a California Division of Apprenticeship Standards approved program may be employed on the project as an apprentice and receive the applicable apprenticeship prevailing wage rates. Apprentices who are not properly supervised and employed in the appropriate ratio shall be paid the full journeyman wages for the classification of work performed.
5. As a condition to receiving progress payments, final payment and payment of retention on any and all projects on which the payment of prevailing wages is required, Contractor agrees to present to City, along with its request for payment, all applicable and necessary certified payrolls (for itself and all applicable subcontractors) for the time period covering such payment request. The term "certified payroll" shall include all required documentation to comply with the mandates set forth in Labor Code Section 1720 et seq, as well as any additional documentation requested by the City or its designee including, but not limited to: certified Agreement with American Power Solutions, lnc./Exhibit D-Labor Compliance Rev. 07-01-18
payroll, fringe benefit statements and backup documentation such as monthly benefit statements, employee timecards, copies of wage statements and cancelled checks, proof of training contributions (CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.
6. In addition to submitting the certified payrolls and related documentation to City, Contractor and all subcontractors shall be required to submit certified payroll and related documents electronically to the California Department of Industrial Relations. Failure to submit payrolls to the DIR when mandated by the project parameters shall also result in the withholding of progress, retention and/or final payment.
7. No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1 (a)].
8. No contractor or subcontractor may be awarded a contract for public work on a public works project, unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. Contractors MUST be a registered "public works contractor'' with the DIR AT THE TIME OF BID. Where the prime contract is less than $15,000 for maintenance work or less than $25,000 for construction alternation, demolition or repair work, registration is not required.
9. All contractors/subcontractors and related construction services subject to prevailing wage, including but not limited to: trucking, surveying and inspection work must be registered with the Department of Industrial Relations as a "public works contractor". Those you fail to register and maintain their status as a public works contractor shall not be permitted to perform work on the project.
10. Should any contractor or subcontractors not be a registered public works contractor and perform work on the project, Contractor agrees to fully indemnify the City for any fines assessed by the California Department of Industrial Relations against the City for such violation, including all staff costs and attorney's fee relating to such fine.
11. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
J. Audit Rights
All records or documents required to be kept pursuant to this Agreement to verify compliance with this Addendum shall be made available for audit at no cost to City, at any time during regular business hours, upon written request by the City Attorney, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such records or documents shall be provided to City for audit at City Hall when it is Agreement with American Power Solutions, lnc./Exhibit D-Labor Compliance Rev. 07-01-18
Page2
practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records or documents shall be made available at Contractor's address indicated for receipt of notices in this Agreement.
K. Enforcement
1. City shall withhold any portion of a payment; including the entire payment amount, until certified payroll forms and related documentation are properly submitted, reviewed and found to be in full compliance. In the event that certified payroll forms do not comply with the requirements of Labor Code Section 1720 et seq., City may continue to hold sufficient funds to cover estimated wages and penalties under the Agreement.
2. Based on State funding sources, this project may be subject to special labor compliance requirements of Proposition 84.
3. The City is not obligated to make any payment due to Contractor until Contractor has performed all of its obligations under these provisions. This provision means that City can withhold all or part of a payment to Contractor until all required documentation is submitted. Any payment by the City despite Contractor's failure to fully perform its obligations under these provisions shall not be deemed to be a waiver of any other term or condition contained in this Agreement or a waiver of the right to withhold payment for any subsequent breach of this Addendum.
City or the California Department of Industrial Relations may impose penalties upon contractors and subcontractors for failure to comply with prevailing wage requirements.
These penalties are up to $200 per day per worker for each wage violation identified; $100 per day per worker for failure to provide the required paperwork and documentation requested within a 10-day window; and $25 per day per worker for any overtime violation.
Agreement with American Power Solutions, lnc./Exhibit D-Labor Compliance Rev. 07-01-18
EXHIBIT E
NOTICE OF EXERCISE OF OPTION TO EXTEND AGREEMENT
AGREEMENT TITLE:
CONTRACTOR:
DATE:
Pursuant to Section _ of the Agreement referenced above, the City of Santa Clara hereby exercises its option to extend the term under the following provisions:
I OPTION NO. # of#
NEW OPTION TERM
I Begin date:
End date:
0 CHANGES IN RATE OF COMPENSATION
I Percentage change in CPI upon which adjustment is based:
Pursuant to Section _ of the Agreement the rates of compensation are hereby adjusted as follows:
(use attachment if necessary)
I MAXIMUM COMP EN SA TION for New Option Term:
For the option term exercised by this Notice, City shall pay Contractor an amount not to exceed the amount set forth above for Contractor's seNices and reimbursable expenses, if any. The undersigned signing on behalf of the City of Santa Clara hereby certifies that an unexpended appropriation is available for the term exercised by this Notice, and that funds are available as of the date of this signature.
Approved as to Form:
GLEN R. GOOGINS
City Attorney
Dated:
JOVAN D. GROGAN
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
Agreement with American Power Solutions, lnc./Exhibit E-Notice of Option to Extend Agreement Page 1 Rev. 07-01-18
EXHIBIT F
SAMPLE WORK AUTHORIZATION FORM
This work authorization ("Work Authorization") is made pursuant to the Agreement for Service between the City of Santa Clara and American Power Solutions, Inc. ("Agreement"). This Work Authorization is governed by the provisions of the Agreement and is hereby incorporated into that Agreement by reference. All Services shall be using the terms and rates included in the Agreement. In the event of any inconsi·stency between the terms and conditions of the Work Authorization and the Agreement, the terms and conditions of the Agreement shall govern and control.
PART A: GENERAL INFORMATION
WORK AUTHORIZATION D Original
NUMBER: D First Revised
Contract No. D Second Revised
D Other
Contractor Name/Address:
Expiration Date of Agreement:
Contractor's Project Manager: Name: Email:
City's Project Manager Name: Email:
Period of Performance for this Start Date: Expected Completion Date:
Work Order:
Maximum Compensation for this Work Authorization
Contractor Representative Name (Print)
Contractor Representative Signature
Contractor Representative Signature Date
City Project Manager Name (Print)
Authorized City Representative Print)
City Representative Signature
City Representative Signature Date
* Authorized City Representatives include Public Works Facilities Manager, Public Works Deputy Director
Agreement with American Power Solutions, lnc./Exhibit F-Work Authorization Form Rev. 07-01-18
PART 8: SERVICES TO BE PERFORMED
1. REVISED WORK AUTHORIZATION
□ No
D If yes, provide a brief description of the change(s).
2. SCOPE OF SERVICES TO BE PERFORMED
The Contractor shall perform the service(s) described below in accordance with all of the terms and conditions of the Agreement. (Insert a detailed Scope of Services below or attach as a separate file.) Scope of Services and cost proposal shall meet all of the provisions of Exhibit A and Exhibits B1 and B2.
Agreement with American Power Solutions, lnc./Exhibit F-Work Authorization Form Rev. 07-01-18
3. COMPENSATION
a. Basis of Compensation: D Time & Materials D Fixed Fee b. Payment Schedule:
D Monthly D Completion of Deliverable/Milestone rg] Completion of Services c. Payment Terms. See Exhibit 81 for payment of terms.
4. ACCEPTANCE CERTIFICATE
D Acceptance Certificate not required.
D Acceptance Certificate required.
Agreement with American Power Solutions, lnc./Exhibit F-Work Authorization Form Rev. 07-01-18
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
24-252 Agenda Date: 7/16/2024
REPORT TO COUNCIL
SUBJECT
Action on Agreements with Advanced Lighting Services Inc. and American Power Solutions Inc. for Citywide LED Lighting Retrofit and Replacement for City Facilities and As-Needed Services
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) Facilities Division (Facilities) oversees maintenance and repairs for approximately 1,100,000 square feet of buildings throughout the City. To provide services in a timely and efficient manner, Facilities periodically uses various vendors to assist with the workload.
California Assembly Bill 2208 (AB 2208) was signed into law in September 2022 and phases in a ban that will prohibit the sale of fluorescent bulbs in California. Fluorescent light bulbs, including compact and linear types, contain mercury which poses both environmental and health concerns. AB 2208 is being implemented in two phases.
Phase 1: Beginning January 2024, screw or bayonet base type compact fluorescent lamps will be prohibited for sale or distribution in California.
Phase 2: Beginning January 2025, pin-base type compact fluorescent lamps will be prohibited for sale and distribution in California.
Many City buildings utilize pin-base type compact fluorescent lamps. To comply with AB 2208, the City will need to begin retrofitting or replacing fixtures to LED throughout City buildings. Energy savings rebates and potential loans are being considered in partnership with Silicon Valley Power (SVP) to help offset the expenses related to AB 2208.
The scope of services for the LED Lighting Retrofit and Replacement Project (Project) will include a site survey of numerous City buildings to determine the best course of action and then replacing or retrofitting linear fluorescent fixtures with LED fixtures. The project will be implemented based on available funding in the budget, with work commencing in the largest buildings such as City Hall, the Police Department, libraries, the Senior Center, the Community Recreation Center, and others.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.” On March 13, 2024, staff published the RFP for the LED Lighting Retrofit and Replacement Project on the City’s e-procurement platform. A total of City of Santa Clara Printed on 7/12/2024Page 1 of 3
powered by Legistar™
24-252 Agenda Date: 7/16/2024
nine proposals were received from the following firms:
1. Advanced Lighting Services Inc.
2. American Power Solutions Inc.
3. American Wholesale Lighting Inc.
4. Brighton Energy Inc.
5. Cupertino Electric Inc.
6. Everwatt Lights LLC
7. MM Energy and Lighting
8. Sactown Contractors Corp
9. Star Energy Management Inc.
Proposals were independently reviewed by a three-member evaluation team made up of DPW representatives. Advanced Lighting Services Inc., American Power Solutions Inc., American Wholesale Lighting Inc., and Star Energy Management Inc. were asked to participate in oral interviews.
Staff recommends awarding agreements to Advanced Lighting Services Inc. (ALS) and American Power Solutions Inc. (APS) for having submitted the best value proposals. Both companies have committed enough resources for the initial phase of the Project. Work in this phase is scheduled to begin in Summer 2024, with an estimated completion date of early 2025. Staff will then evaluate funding options to complete additional City buildings. It is anticipated that additional funding will also be requested during the budget process in future years.
Under the proposed agreements, ALS and APS will provide citywide LED retrofit and replacement services on a per-building request basis. For each building, both contractors will provide an assessment, which will include a count of retrofits or replacements, and a proposal to perform the work based on the hourly rates and pricing for the bulbs and fixtures established in the agreements.
The contractor with the lowest total cost and most advantageous project timeline will be awarded the work for that designated building.
Rates are fixed for the initial two-year term and are subject to price adjustments thereafter.
Contractors’ requests for rate increases must be tied to a relevant market index and are subject to the City's approval. After the initial term, the City has a one-year option to extend the term of the agreements. Prevailing wages are included in these agreements.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The amount to be paid to ALS and APS for the initial two-year term shall not exceed a combined aggregate amount of $500,000. In the Adopted FY 2024/25 and FY 2025/26 Capital Improvement Program Budget, funding is budgeted in the City Buildings - Upgrade Lighting to LED Project in FY 2024/25 for anticipated LED retrofit and replacement services. Costs beyond FY 2024/25 are subject to appropriation of funds by the City Council.
City of Santa Clara Printed on 7/12/2024Page 2 of 3
powered by Legistar™
24-252 Agenda Date: 7/16/2024
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the
public information desk at any City of Santa Clara public library.
RECOMMENDATION
1. Authorize the City Manager to negotiate and execute agreements with Advanced Lighting Services Inc. and American Power Solutions Inc. to provide Citywide LED Lighting Retrofit and Replacement Services for an initial two-year term starting on or around July 15, 2024 and ending on or around July 14, 2026, with an aggregate maximum compensation not-to-exceed $500,000, in final forms approved by the City Attorney; and
2. Authorize the City Manager to execute amendments to the agreement to make minor modifications and to extend the term up to one year after the initial term, subject to the appropriation of funds and in final forms approved by the City Attorney.
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Draft Agreement with Advanced Lighting Services Inc.
2. Draft Agreement with American Power Solutions Inc.
City of Santa Clara Printed on 7/12/2024Page 3 of 3
powered by Legistar™
Amendment No. 1 to Agreement/Advanced Lighting Services, Inc. Page 1 Rev. 10/25/2019
Ebix Insurance No. S200005423
AMENDMENT NO. 1
TO THE AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
ADVANCED LIGHTING SERVICES, INC.
PREAMBLE
This agreement (“Amendment No. 1”) is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Advanced Lighting Services, Inc., a California corporation, (Contractor). City and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”
RECITALS
A. The Parties previously entered into an agreement entitled “Agreement for Services between the City of Santa Clara, California, and Advanced Lighting Services, Inc.”, dated July 24, 2024 (Agreement); and
B. The Parties entered into the Agreement for the purpose of having Contractor provide services for citywide LED lighting retrofit and replacement project, and the Parties now wish to amend the Agreement to increase the total aggregate maximum work authorization by $441,046 for a revised total not-to-exceed aggregate maximum work authorization compensation of $941,046 subject to the appropriation of funds.
NOW, THEREFORE, the Parties agree as follows:
AMENDMENT TERMS AND CONDITIONS
1. Section 1.4 of Exhibit B1 of the Agreement, entitled “COMPENSATION” is hereby amended to read as follows:
As specified in Section 4 of Exhibit A (“SCOPE OF SERVICES”), Contractor is one of two firms selected to perform the Services, pursuant to two (2) separate agreements (collectively, the “LED Lighting Retrofit and Replacement Project Agreements”). Under no circumstance shall the total compensation for all Approved Work Authorizations to both firms exceed the total compensation of $941,046 approved by City Council on April 29, 2025.
Amendment No. 1 to Agreement/Advanced Lighting Services, Inc. Page 2 Rev. 10/25/2019
2. Except as set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. In case of a conflict in the terms of the Agreement and this Amendment No. 1, the provisions of this Amendment No. 1 shall control.
The Parties acknowledge and accept the terms and conditions of this Amendment No. 1 as evidenced by the following signatures of their duly authorized representatives.
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form: Dated:
GLEN R. GOOGINS
City Attorney
JŌVAN D. GROGAN
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
“CITY”
ADVANCED LIGHTING SERVICES, INC.
a California corporation
Dated:
By (Signature):
Name: B. David Taylor
Title: President
Principal Place of
Business Address:
6681 Sierra Lane
Suite A
Dublin, CA 94568
Email Address: [email protected]
Telephone: (925) 829-7801 / (510) 773-8973
Fax: (925) 829-7805
“CONTRACTOR”
Amendment No. 1 to Agreement/American Power Solutions, Inc. Page 1 Rev. 10/25/2019
Ebix Insurance No. S200005416
AMENDMENT NO. 1
TO THE AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
AMERICAN POWER SOLUTIONS, INC.
PREAMBLE
This agreement (“Amendment No. 1”) is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and American Power Solutions, Inc., a California corporation, (Contractor). City and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”
RECITALS
A. The Parties previously entered into an agreement entitled “Agreement for Services between the City of Santa Clara, California, and American Power Solutions, Inc., dated July 24, 2024 (Agreement); and
B. The Parties entered into the Agreement for the purpose of having Contractor provide services for citywide LED lighting retrofit and replacement project, and the Parties now wish to amend the Agreement to increase the total aggregate maximum work authorization by $441,046 for a revised total not-to-exceed aggregate maximum work authorization compensation of $941,046, subject to the appropriation of funds.
NOW, THEREFORE, the Parties agree as follows:
AMENDMENT TERMS AND CONDITIONS
1. Section 1.4 Exhbit B1 of the Agreement, entitled “COMPENSATION” is hereby amended to read as follows:
As specified in Section 4 of Exhibit A (“SCOPE OF SERVICES”), Contractor is one of two firms selected to perform the Services, pursuant to two (2) separate agreements (collectively, the “LED Lighting Retrofit and Replacement Project Agreements”). Under no circumstance shall the total compensation for all Approved Work Authorizations to both firms exceed the total compensation of $941,046 approved by City Council on April 29, 2025.
Amendment No. 1 to Agreement/American Power Solutions, Inc. Page 2 Rev. 10/25/2019
2. Except as set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. In case of a conflict in the terms of the Agreement and this Amendment No. 1, the provisions of this Amendment No. 1 shall control.
The Parties acknowledge and accept the terms and conditions of this Amendment No. 1 as evidenced by the following signatures of their duly authorized representatives.
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form: Dated:
GLEN R. GOOGINS
City Attorney
-ƿ9$1'*52*$1
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax:
(408) 241-6771
“CITY”
AMERICAN POWER SOLUTIONS, INC.
a California corporation
Dated:
By (Signature):
Name: Peter Yoon
Title: President
Principal Place of
Business Address:
14355 Industry Circle
La Mirada, CA 90638
Email Address: peter @americanpowersolutions.com
Telephone: (714) 626-0300
Fax: (714) 626-0200
“CONTRACTOR”
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
25-365 Agenda Date: 4/29/2025
REPORT TO COUNCIL
SUBJECT
Action on a Resolution Establishing the Average Per-Acre Land Values and Park Development Costs to be Used in the Calculation of Parkland In-Lieu Fees for New Residential Development for the FY 2025-26 Municipal Fee Schedule
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
City Code Chapter 17.35 “Park and Recreational Land” requires new residential developments to provide developed park and recreational land and/or pay a fee in-lieu of developed parkland dedication (“In-Lieu Fees”) pursuant to the Quimby Act (“Quimby”) and/or the Mitigation Fee Act (“MFA”). This enables the City to maintain its existing level of service at the same rate of 2.6 acres to
3.0 acres of parkland and recreational amenities per 1,000 residents.
Parkland dedication in-lieu fees are reviewed annually and are considered a part of the Municipal Fee Schedule update. There are three primary cost components upon which in-lieu fees are calculated:
1) the average cost to purchase land for parks in Santa Clara, as determined by an annual land evaluation appraisal; and
2) the average cost per capita to develop the land into a useable park facility based on the 2019 Parks and Recreation Facility Condition Assessment indexed to the Department of General Services California Construction Cost Index (CCCI); and 3) the administration cost of the program, including the review of residential development plans for compliance with the park ordinance and the tracking of in-lieu fees (currently set at 2% of total fees collected).
The methodology for the calculation of the In-Lieu Fees is explained in the Park & Recreation Facilities Development Impact Fee Study (Nexus Study) updated August 27, 2019 (Attachment 1).
The purpose of this report is to:
1) share the findings of the 2024 land valuation report; and 2) recommend a 2.3% adjustment to the park improvement value in accordance with the latest CCCI figures.
City of Santa Clara Printed on 4/25/2025Page 1 of 5
powered by Legistar™
25-365 Agenda Date: 4/29/2025
DISCUSSION
Land Valuation - Average Cost per Acre
The cost to purchase land for parks is based on an annual land valuation study. The appraisal report is completed by an appraiser in accordance with City Code Section 17.35.040 and the Supplemental Instructions for the Appraisal of the Fair Market Value of Land approved by the City Council on June 7, 2016 (Attachment 2).
The appraisal report has a valuation date of December 31 to account for the full calendar year (January 1 to December 31) of data for property transactions and provides an objective assessment of the average value of an acre of land for each of the three residential ZIP Code areas of the City (95050, 95051, and 95054).
On March 1, 2025, the City’s consultant, Frank Schmidt & Associates, completed the annual land valuation study with a valuation date of December 31, 2024 (Attachment 3). Table 1 below provides the 2024 valuation for the City’s three residential zip code areas, along with prior years’ values for comparison. Noteworthy in the table below is that the average land value per acre dropped in all three zip codes in comparison to the 2023 Land Valuation Appraisal Report.
Table 1 Average Land Value per Acre
Area 12-31-24 12-31-23 % Chg
(2023 to
2024)
12-31-22 12-31-21 12-31-20 12-31-19 12-31-17
95050 $5.180M $5.455M -5.0% $5.500M $5.715M $4.720M $4.385M $3.738M 95051 $5.340M $5.650M -5.5% $5.840M $6.000M $5.120M $4.630M $3.993M 95054 $5.000M $5.255M -4.9% $5.240M $5.495M $4.830M $4.495M $4.035M The 2024 Annual Land Valuation appraisal report was posted on the City’s website. The two-week comment period was open from March 4, 2025, through March 18, 2025. Members of the public and development community were invited to review the report and to provide questions and comments to the Director of Parks & Recreation. No comments were received during the official comment period.
Park Improvement Value - Average Cost Per Capita
The cost of constructing the park improvements (landscape, furnishings, buildings, etc.) is based on the average cost per capita for the City’s existing park system improvements. This is to ensure a fair and equitable distribution of costs to be recovered for the development of park assets and features to serve the new residents at the same standard as existing residents.
The last update to the park improvement value took place on October 29, 2024, under Resolution No. 24-9383 (Attachment 4). In 2023, the Council adopted Resolution No. 23-9220 (Attachment 5), which established a methodology for annually updating the park improvement value. Under the methodology, annual updates correspond to the changes (increases or decreases) in the Department of General Services California Construction Cost Index (CCCI) for the previous calendar year as reported by the Real Estate Services Division for the Bay Area. Such annual increases and decreases are limited to no more than a change of 10% of the base value, and in no case can the increased or decreased base value be more than 100% cost recovery.
Accordingly, park development costs are reviewed and updated annually to account for the changes City of Santa Clara Printed on 4/25/2025Page 2 of 5
powered by Legistar™
25-365 Agenda Date: 4/29/2025
in construction costs (escalation/inflation) and the average value of park assets across the existing park system in accordance with Resolution No. 23-9220 (Attachment 5).
From 2023 to 2024, the CCCI value increased by 2.3% (Table 2 below). Under the Council’s adopted policy, it is recommended that the current park improvement value of $4,177 be adjusted by the 2024 CCCI value of 2.3%, increasing it to $4,273.
Table 2 Park Improvement Value (Cost per Capita)/Construction Cost Escalation 2023-2025 Year 2023 2024 PI Value 2024 2025 PI Value
CCCI +9.4% $4,177 +2.3% $4,273
Park Improvement
Value
$3,818 $4,177
Credit for Qualified Private Recreational Amenities
New residential developments may propose and receive a credit of 50% of the land value for eligible private recreation amenities against In-Lieu Fees due. This acknowledges that eligible private amenities within a new residential development have some public value, insofar as they partially reduce the impact on the existing public park system. Such amenities for active recreation include, but are not limited to, pools, gymnasiums/fitness areas, community rooms, picnic facilities, playgrounds, off-leash dog areas, large turf areas, sport courts, or community gardens. Each residential project application is evaluated for size, shape, location, utility/demand, among other criteria, to assure that the facilities proposed are appropriate and acceptable for reducing demand on existing public parkland. Eligible affordable housing and senior housing projects receive a 15% credit toward the parkland dedication requirement or fees due in-lieu of parkland dedication.
Use of In-Lieu Fees
The City deposits In-Lieu Fees received into separate accounts specified for either Quimby or MFA.
During the development of the City’s Capital Improvement Program budget, In-Lieu Fees are allocated to Capital Improvement Program projects with allowable uses of the funds that may include acquisition of parkland and development of neighborhood and community parks, and under certain conditions for Quimby, the rehabilitation of existing park facilities. In-Lieu Fees cannot be used for on- going maintenance.
Spending and Reporting Requirements
The amounts of fees received and allocated are reported on an annual basis in the City’s Adopted Budget document.
Proposed Fees for FY 2025/26
The changes in average land value per acre, as shown in Table 1, results in a reduction in park in- lieu fees as follows:
Zip Code Quimby Current Revised Change
95050 Single Family $59,507 $57,394 -$2,113
Multi Family $40,230 $38,802 -$1,428
95051 Single Family $61,201 $58,785 -$2,416
Multi Family $41,375 $39,741 -$1,634
95054 Single Family $57,769 $55,830 -$1,939
Multi Family $39,055 $37,744 -$1,311
Zip Code Mitigation Fee Act (MFA) Current Revised Change 95050 Single Family $53,186 $51,392 -$1,794
Multi Family $35,956 $34,744 -$1,212
95051 Single Family $54,655 $52,597 -$2,058
Multi Family $36,949 $35,558 -$1,391
95054 Single Family $51,679 $50,036 -$1,643
Multi Family $34,938 $33,827 -$1,111
City of Santa Clara Printed on 4/25/2025Page 3 of 5
powered by Legistar™
25-365 Agenda Date: 4/29/2025
Zip Code Quimby Current Revised Change
95050 Single Family $59,507 $57,394 -$2,113
Multi Family $40,230 $38,802 -$1,428
95051 Single Family $61,201 $58,785 -$2,416
Multi Family $41,375 $39,741 -$1,634
95054 Single Family $57,769 $55,830 -$1,939
Multi Family $39,055 $37,744 -$1,311
Zip Code Mitigation Fee Act (MFA) Current Revised Change 95050 Single Family $53,186 $51,392 -$1,794
Multi Family $35,956 $34,744 -$1,212
95051 Single Family $54,655 $52,597 -$2,058
Multi Family $36,949 $35,558 -$1,391
95054 Single Family $51,679 $50,036 -$1,643
Multi Family $34,938 $33,827 -$1,111
To further illustrate how in-lieu fees are calculated, the worksheets used by staff have been updated and are attached to this report (Attachment 6). Please note that there are separate worksheets for each of the three City of Santa Clara zip codes, type of development (Single or Multi-Family), and regulatory program (Quimby or MFA).
Fee Implementation
In conformance with state law, a proposed Resolution has been drafted to provide the required findings for Quimby and MFA (Attachment 7). Under state law, fees subject to Quimby may take effect immediately after adoption and fees subject to MFA may take effect no sooner than 60 days after adoption. The fees set forth in the proposed Resolution, for both Quimby and MFA-based fees, will take effect on July 1, 2025 which satisfies the MFA’s 60-day delay requirement.
This information was presented to the Parks & Recreation Commission (Commission) at its regular meeting on March 10, 2025, to seek input from the Commission and the public regarding the proposed changes. There were no public comments. The Commission made the following recommendations:
1) That the City Council accept the Land Valuation Appraisal Report dated December 31, 2024, as presented; and
2) That the City Council adopt the proposed adjustment of 2.3% to the Park Improvement Value in alignment with the State of California, Department of General Services Construction Cost Index (CCCI) and prior Council direction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to California Code of Regulations Title 14 Section 15378(b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
There is no impact on the General Fund for consideration of this item. The actual amount of Parkland In-Lieu Fee revenue collected will vary based on the project application type (Quimby/MFA), the area of the City (Zip codes 95050, 95051, 95054), the density of housing units (single family versus multifamily), the amount of public parkland dedicated, and the amount of financial credit developers City of Santa Clara Printed on 4/25/2025Page 4 of 5
powered by Legistar™
25-365 Agenda Date: 4/29/2025
receive (50% of the land value for eligible on-site private recreation amenities, and/or 15% credit toward the fees due in-lieu of parkland dedication for eligible affordable housing and senior housing projects).
Since the exact number and type of residential building permits issued in any particular year is unknown, and the amount of parkland to be dedicated by a particular residential developer is also unknown, the exact amount of In-Lieu Fee revenues cannot be projected at this time.
When the In-Lieu Fee Policy is set at 100% cost recovery, the City will recover 100% of the costs necessary to provide new residents with developed public parkland and recreational amenities at the same level of service as provided to existing residents. Without sufficient parkland and facilities, there is increased demand on existing facilities, which causes competition for access, additional wear, more frequent repair, and higher maintenance and capital replacement costs.
If fees are set at less than 100% cost recovery, additional General Fund resources will be needed to bridge the funding gap. Within this scenario, the City will need to identify other funding sources for acquisition, development and redevelopment of parkland to maintain adequate/current park system standards of 2.6 to 3.0 acres per 1,000 residents.
COORDINATION
This report has been coordinated with the Finance Department, the City Attorney’s Office, and the City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Adopt a Resolution in accordance with Santa Clara City Code Chapter 17.35 establishing the average per-acre land values and park development costs to be used in the setting of parkland in-lieu fees for residential development.
Prepared by: Gina Saporito, Staff Analyst
Reviewed by: Damon Sparacino, Director of Parks & Recreation Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Nexus Study
2. Supplemental Instructions for the Appraisal of the Fair Market Value of Land
3. 2024 Land Valuation Appraisal
4. Resolution No. 24-9383
5. Resolution No. 23-9220
6. Draft Park In-Lieu Fee Schedule Worksheets
7. Draft Resolution Establishing Land Values and Improvement Costs City of Santa Clara Printed on 4/25/2025Page 5 of 5
powered by Legistar™
CITY OF SANTA CLARA
PARK AND R
ECREATION FACILITIES
DEVELOPMENT IMPACT FEE UPDATE
STUDY
FINAL (approved August 27, 2019)
April 9, 2019
Oakland Office Corporate Office Other Regional Offices
1939 Harrison Street 27368 Via Industria Lancaster, CA Suite 430 Suite 110 Memphis, TN
Oakland, CA 94612 Temecula, CA 92590 Orlando, FL
Tel: (510) 832-0899 Tel: (800) 755-MUNI (6864) Phoenix, AZ Fax: (510) 832-0898 Fax: (909) 587-3510 Sacramento, CA Seattle, WA
www.willdan.com
Attachment 1
i
TABLE OF CONTENTS
1. INTRODUCTION ................................................................................. 2 Background and Study Objectives 2
Public Facilities Financing in California 2
Organization of the Report 3
Facility Standards and Cost Allocation Approach 3
2. LAND USE ASSUMPTIONS .................................................................. 4 Use of Growth Projections for Impact Fees 4
Land Use Types 4
Growth Projections for City of Santa Clara 4
Occupant Densities 5
3. PARKS & RECREATION FACILITIES ...................................................... 6 Existing Park and Recreation Facilities Inventory 6
Developed Park Improvement Cost Estimate 9
Parkland Unit Costs 12
Quimby Justification Parkland Inventory (as of 2010) 13 Improved Parkland Equivalent 16
Park Facility Standards 17
City of Santa Clara Park Facilities Standards 19
Facilities Needed to Accommodate New Development 20
Parks Cost per Capita 21
Fee Schedule 22
4. IMPLEMENTATION ............................................................................ 26 Impact Fee Program Adoption Process 26
Inflation Adjustment 26
Reporting Requirements 26
Fee Accounting 26
Programming Revenues and Projects with the CIP 26
5. MITIGATION FEE ACT FINDINGS ....................................................... 27 Purpose of Fee 27
Use of Fee Revenues 27
Benefit Relationship 27
Burden Relationship 28
Proportionality 28
APPENDIX ........................................................................................... 29 2 1. Introduction
This report summarizes an analysis of the need for public facilities and capital improvements to support future development within the City of Santa Clara through 2035. It is the City’s intent that the costs representing future development’s share of these facilities and improvements be imposed on that development in the form of a development impact fee, also known as a public facilities fee. The public facilities and improvements included in this analysis of the City’s public facilities fee program all fall into the parks and recreation facilities category.
Background and Study Objectives
The primary policy objective of a public facilities f ee program is to ensure that new development pays the capital costs associated with growth. To fulfill this objective, public agencies should review and update their fee programs periodically to incorporate the best available information.
The primary purpose of this report is to create fees that incorporate current capital facility plans to serve a 2035 service population for the City of Santa Clara.
In 2013, the Santa Clara City Council adopted a strategic objective to develop a draft new housing develo pment impact fee ordinance for parks acquisition and recreation facility development to meet its continued goal of ensuring fiscal responsibility. In 2014, the City adopted an updated park and recreation facilities fee program under the Mitigation Fee Act and the Quimby Act. This report is an update to the 2014 study to incorporate the latest facility cost and land acquisition cost data provided City, who commissioned the data specifically for use in this analysis.
The City imposes public facilities fees u nder authority granted by the Mitigation Fee Act , contained in California Government Code Sections 66000 et seq . Th is report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules contained herein.
Depending on the characteristics of the development project, the City may use the Quimby Act to calculate impact fees. The Quimby Act allows a city to require developers to dedicate at least three acres and up to five acres per 1,000 residents, if the city’s ex isting park standard as of the last Census justifies the higher level.
Public Facilities Financing in California
The changing fiscal landscape in California during the past 40 years has steadily undercut the financial capacity of local governments to fund infrastructure. Three dominant trends stand out:
▪ The passage of a string of tax limitation measures, starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996; ▪ Declining popular support for bond measures to financ e infrastructure for the next generation of residents and businesses; and
▪ Steep reductions in federal and state assistance.
Faced with these trends, many cities and counties have had to adopt a policy of “growth pays its own way.” This policy shifts the bu rden of funding infrastructure expansion from existing taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees also known as public facilities fees . Assessments and special taxes require approval of property owners and are appropriate when the funded facilities are directly related to the developing property.
Development fees, on the other hand, are an appropriate funding source for facilities that b enefit all development jurisdiction -wide. Development fees need only a majority vote of the legislative body for adoption.
City of Santa Clara Parks and Recreation Facilities Fee Study 3 Organization of the Report
The determination of a public facilities fee begins with the selection of a planning horizon and development of projections for population and employment. These projections are used throughout the analysis of different facility categories and are summarized in Chapter 2.
Chapter 3 is devoted to documenting the maximum justified public facilities fee for parks and recreation facilities.
Chapter 4 describes the fee implementation process. The five statutory findings required for adoption of the proposed public facilities fees in accordance with the Mitigation Fee Act (codified in California Government Code Sections 66000 through 66025) are summarized in Chapter 5.
Facility Standards and Cost Allocation Approach
A facility standard is a policy that indicates the amount of facilities required to accommodate service demand. Examples of facility standards include bui lding square feet per capita and park acres per capita. Standards also may be expressed in monetary terms such as the value of facilities per capita , or the value of improvements per acre or per capita . The adopted facility standard is a critical component in determining development’s need for new facilities and the amount of the fee. Standards determine new development’s fair share of planned facilities and ensure that new development does not fund deficiencies associated with the existing city infrastructure.
The parks and recreation facilities fees calculated in this report use an existing inventory demand standard translated into facility costs per capita to determine new development’s fair share of planned facility costs. A cost standard provides a reas onable method for converting disparate types of facilities, in this case parkland and special use recreational facilities , into a single measure of demand (capital cost per capita). The cost standard is based on the existing inventory of parks and recreati on facilities. New development would fund the expansion of facilities at the same rate that existing development has p rovided facilities to date, t hus by definition, there is no existing deficiency.
4 2. Land Use Assumptions
This chapter describes the p rojections of growth used in this study . The exi sting service population in 2018 is used as the base year of the study and the p lanning horizon is the year 2035. This chapter also describes the sources of the unit costs for land and buildings used in this study.
Use of Growth Projections for Impact Fees
Estimates of the existing service population and projections of growth are critical assumptions used throughout this report. These estimates are used as follows:
▪ Estimates of total develo pment in 2035 are used to determine the total amount of public facilities required to accommodate the future service population. ▪ Estimates of existing and new development are used to allocate the fair share of total planned facility costs between existing and new development.
Land Use Types
To ensure a reasonable relationship between each fee and the type of development paying the fee, growth projections distinguish between different land use types. The land use types used in this analysis are defined below.
▪ Single-family: Detached and attached one-family dwelling units. ▪ Multi-family: All attached multi -family dwellings such as duplexes, condominiums, plus mobile homes, apartments, and dormitories.
▪ Accessory Dwelling Unit: dwelling unit not exceeding 640 square feet in floor ar ea, and which includes a kitchen, one -bedroom sleeping quarters, and a bathroom on a lot with an existing single-family dwelling.
The City should have the discretion to impose the parks and recreation facilities fee based on the specific aspects of a propo sed development regardless of zoning. The guideline to use is the probable occupant density of the development. The fee imposed should be based on the land use type that most closely matches the probable occupant density of the development.
Growth Projections for City of Santa Clara
Park and recreation facilities in Santa Clara primarily serve residents in the City of Santa Clara.
Therefore, residents comprise the park and recreation facilities service population.
The base year for this study is the year 2018. The planning horizon is 2035. Resident growth between 2018 and 2035 comprises the growth increment in this analysis. The City’s population in 2010 is used to calculate the parkland standard under the Quimby Act. The Santa Clara General Plan identified total projected residents in 2035.
Table 1 shows estimates of t he growth in terms o f residents between 2018 and 2035. The table also shows the City’s population in 2010.
City of Santa Clara Parks and Recreation Facilities Fee Study 5 Table 1: Parks Service Population
Residents
Census (2010) 116,468
Existing (2018) 126,408
Growth (2018 - 2035) 28,392
Total (2035) 154,800
Sources: US Census, 2010; CA Deparment of Finance,
Table E-5, 2018; Santa Clara General Plan.
Occupant Densities
Occupant densities ensure a reasonable relationship between t he increase in service population and amount of the fee. Developers pay the fee based on the number of additional housing units for residential development. The fee schedule must convert service population estimates into these measures of housing units. Th is conversion is done with average occupant density factors by land use type, shown in Table 2. The residential occupant density factors for both the various types of dwelling units were derived from the most recently available data from US Census’ American Community Survey.
Table 2: Occupant Density
Residential
Single Family 2.98 Residents Per Dwelling Unit
Multi-family and Accessory
Dwelling Units 2.40 Residents Per Dwelling Unit
Sources: U.S. Census Bureau, 2017 American Community Survey, Tables B25024 and B25033.
• WILLDANI Financial Services
6 3. Parks & Recreation Facilities
The following chapter documents the nexus analysis, demonstrating the need for new park and recreation facilities demanded by new development. This analysis documents two separate fees based on the Quimby Act and the Mitigation Fee Act . The City would collect the fee based a standard of 3.0 acres per 1,000 residents if the development was subject to the Quimby Act land dedication requirement. For all other development, the City would collect based o n the existing standard through the Mitigation Fee Act . The City would only collect one of the two fees depending on which was appropriate.
Existing Park and Recreation Facilities Inventory
The City of Santa Clara maintains several park and recreation facilities throughout the city. Table 3 summarizes the City’s existing parkland inventory. All facilities are located within the City limits.
The City has revised this inventory from the prior impact fee analysis in 2014, based on the latest information available. The inventory distinguishes between developed and undeveloped parkland.
Developed parkland includes parks that are open for public use with typical park amenities. This includes facilities that are owned by other agencies that the City has joint u se agreements for, or public park easements in perpetuity for public use of the facilities. Undeveloped parkland represents land that the City owns, or will be dedicated to the City, but does not yet include any improvements or amenities.
City of Santa Clara Parks and Recreation Facilities Fee Study 7 Table 3: Existing Parkland Inventory
Park Name Address
2018
Inventory
Developed
2018 Inventory
Undeveloped
Community Parks
Central Park 909 Kiely Boulevard 45.04 -
Central Park North-City Place (SCG&TC) 5155 Stars & Stripes Drive - 34.93 Subtotal Community Parks 45.04 34.93
Mini/Pocket Parks
Geof Goodfellow Sesquicentennial Park 1591 El Camino Real 0.18 - Memorial Cross Park 2501 De La Cruz Boulevard 0.34 - Thomas Barrett Park (formerly BAREC) 1885 Worthington Circle 1.00 - Rotary Park 1490 Don Avenue 0.20 -
War Memorial Playground 295 Monroe Street 0.87 - LSAP-Parks A-H - 3.19
Subtotal Mini/Pocket Parks 2.59 3.19
Neighborhood Parks
Agnew Park 2250 Agnew Road 1.97 -
Bowers Park 2582 Cabrillo Avenue 8.70 -
Bracher Park 2560 Alhambra Drive 3.45 -
Central Park Annex Miles Drive 2.72 -
City Plaza Park Lexington & Main Street 1.60 - Earl R. Carmichael Park 3445 Benton Street 8.32 - Everett Alvarez Jr. Park 2280 Rosita Drive 1.61 - Fairway Glen Park 2051 Calle de Primavera 4.00 - Fremont Park 1303 Fremont Street 2.66 -
Fuller Street Park 4641 Fuller Street 2.39 -
Henry Schmidt Park 555 Los Padres Boulevard 7.50 - Homeridge Park 2985 Stevenson Street 4.28 -
Jenny Strand Park 250 Howard Drive 4.47 5.22
Larry J. Marsalli Park 1425 Lafayette Street 7.26 - Lick Mill Park 4750 Lick Mill Boulevard 9.90 - Live Oak Park 4025 Rivermark Parkway 9.98 -
Machado Park 3360 Cabrillo Avenue 2.65 -
Mary Gomez Park 651 Bucher Avenue 5.64 -
Maywood Park 3330 Pruneridge Avenue 6.98 -
Montague Park 3595 MacGregor Lane 7.51 -
Parkway Park 3675 Forest Avenue 4.50 -
Santa Clara Square Parks - 4.17
San Tomas & Monroe (Eddie Souza Park) 2380 Monroe Street 2.49 - Steve Carli Park 1045 Los Padres 1.60 -
Thamien Park 4321 Lick Mill Boulevard 3.40 -
Warburton Park & Pool 2250 Royal Drive 3.95 -
Westwood Oaks Park 460 La Herran Drive 1.75 -
Subtotal Neighborhood Parks 121.26 9.39
Source: City of Santa Clara.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 8 Table 3: Existing Parkland Inventory Continued
Park Name Address
2018
Inventory
Developed
2018 Inventory
Undeveloped
Public Open Space
Agnews Historic Park, Mansion & Auditorium4030 Lafayette Street 14.50 - Civic Center Park 1525 El Camino Real 1.63 -
Ulistac Natural Area 4901 Lick Mill Boulevard - 40.08 Subtotal Public Open Space 16.13 40.08
Recreation Facilities
Raymond G. Gamma Dog Park 888 Reed Street 1.72 - Reed & Grant Street Sports Park 870 Reed Street - 9.04 Santa Clara Senior Center 1303 Fremont Street 2.14 - Santa Clara P.A.L. BMX Track 5451 Lafayette St. - - Santa Clara Youth Soccer Park 5049 Centennial Blvd. 11.00 - Subtotal Recreation Facilities 14.86 9.04
Recreational Trails (San Tomas Aquino/Saratoga Creek Trail) Reach 1 Bay Trail to Agnew Road 1.70 -
Reach 2 Agnew Road to Scott Blvd. 0.81 -
Reach 3 Scott Bldv. to Monroe St. 1.21 -
Reach 4 Monroe St. to Pruneridge Ave. 3.87 0.20 Subtotal Recreational Trails 7.59 0.20
Joint Use Facilities
Buchser Tennis Courts Buchser Campus - 1.07
Mission College Sports Complex 3000 Mission College Blvd 19.40 - Elmer Johnson Field Buchser Campus 5.10 -
Mission City Center for the Performing Arts Wilcox High School - - Montague Swim Center Montague Park 2.50 -
Townsend Field Buchser Campus 5.00 -
Washington Park Baseball Field Buchser Campus 8.20 - Steve Carli Sports Field 1045 Los Padres 3.92 - Skate Park 2440 Cabrillo Avenue 0.90 -
Teen Center 2446 Cabrillo Avenue School 1.00 - Walter E. Schmidt Youth Activity Center 2450 Cabrillo Avenue 1.50 - Subtotal Joint Use Facilities 47.52 1.07
Total 254.99 97.89
Source: City of Santa Clara.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 9 Developed Park Improvement Cost Estimate
This analysis uses an estimate of the replacement cost of the City’s existing parkland inventory to estimate the reasonable cost of constructing new improvements, including site improvements and building assets on new parkland. Table 4 displays the replacement cost improvement values for all the park site and building assets in Table 3.
In 2017, the City retained Kitchell, CEM to complete an inventory of all park and recreation assets for use in the City’s Enterprise Asset Management System/Geographic Information System and a Facility Condition Assessment Report (“Kitchell Report”). The Kitchell Report, dated February 21, 2018 provides an estimate of the current replacement cost “as is” of the existing City park site improvements and b uilding improvements in the City’s park inventory . The costs in Table 4 exclude the value of land , which was determined by a land appraisal and is sh own in Appendix Table A.1 of this report. The values in Table 4 are used below in Table 5 to estimate the average cost per acre of the improvements on an acre of developed parkland. Adjustments have been made (subtracted) for non -standard park facilities and buildings, such as the Agnews Historic Park buildings which are uniquely not owned and maintai ned by the City but are on dedicated park property by an historic easement and agreement.
As shown in Table 4, t he total replacement cost of the existing park site and building improvements is approximately $ 340.5 million. This figure is divided by 254.99 acres of developed parkland resulting in the average park improvement cost per acre in Santa Clara of $1.3 million.
The City also reviewed recent Santa Clara park improvement construction costs to evaluate if the $1.3 million per acre assumption for park improvements was reasonable to use in this analysis.
The recently completed Central Park Annex cost $1 million per acre, San Tomas & Monroe cost $2.3 million per acre, the Lawrence Station Area Parks 2016 estimate was $1.8 million per acre, and Reed & Grant was $2.5 million per acre, which when averaged indicate a higher $1.8 million per acre cost for park improvements. Further, an independent review of the Kitchell Report by an expert construction cost estimator was conducted to validate the Report’s metho ds and analysis that costs exceed $1.3 million per acre.
Therefore, based on this data and analysis, the estimated cost of $1.3 million to improve an acre of parkland in Santa Clara is both reasonable and conservative and is appropriate to use in this analysis.
City of Santa Clara Parks and Recreation Facilities Fee Study 10 Table 4: Park Site Assets and Buildings
Park Name
Replacement
Value Park
Assets
Replacement
Value Building(s)
Asset
Total
Replacement
Cost
Community Parks
Central Park 17,959,388$ 73,370,929$ 91,330,317$ Central Park North-City Place (SCG&TC) - - - Subtotal Community Parks 17,959,388$ 73,370,929$ 91,330,317$ Mini/Pocket Parks
Geof Goodfellow Sesquicentennial Park 160,482$ -$ 160,482$ Memorial Cross Park 98,675 - 98,675 Thomas Barrett Park (formerly BAREC) 540,082 589,374 1,129,456 Rotary Park 220,887 - 220,887 War Memorial Playground 650,033 553,269 1,203,302 LSAP-Parks A-H - - - Subtotal Mini/Pocket Parks 1,670,159$ 1,142,643$ 2,812,802$ Neighborhood Parks
Agnew Park 786,168$ 1,813,786$ 2,599,954$ Bowers Park 1,699,330 6,286,660 7,985,990 Bracher Park 992,336 552,207 1,544,543 Central Park Annex 732,170 732,395 1,464,565 City Plaza Park 338,104 276,276 614,380 Earl R. Carmichael Park 3,221,465 4,984,727 8,206,192 Everett Alvarez Jr. Park 770,680 888,840 1,659,520 Fairway Glen Park 1,613,055 - 1,613,055 Fremont Park 518,591 - 518,591 Fuller Street Park 799,562 530,968 1,330,530 Henry Schmidt Park 3,151,804 2,784,396 5,936,200 Homeridge Park 948,347 509,729 1,458,076 Jenny Strand Park 1,622,998 214,511 1,837,509 Larry J. Marsalli Park 1,994,604 849,549 2,844,153 Lick Mill Park 2,960,932 5,766,312 8,727,244 Live Oak Park 1,484,676 430,084 1,914,760 Machado Park 959,152 1,784,052 2,743,204 Mary Gomez Park 2,032,090 6,687,925 8,720,015 Maywood Park 2,570,053 1,784,052 4,354,105 Montague Park 2,684,563 6,743,293 9,427,856 Parkway Park 672,415 928,132 1,600,547 Santa Clara Square Parks - - - San Tomas & Monroe (Eddie Souza Park) 3,704,850 - 3,704,850 Steve Carli Park 1,095,243 1,588,000 2,683,243 Thamien Park 1,774,012 530,968 2,304,980 Warburton Park & Pool 1,730,636 4,765,381 6,496,017 Westwood Oaks Park 875,039 1,827,566 2,702,605 Subtotal Neighborhood Parks 41,732,875$ 53,259,809$ 94,992,684$ Source: City of Santa Clara; Facilities Condition Assessment Prepared by Kitchell For City of Santa Clara, California, 2018.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 11 Table 4: Park Site Assets and Buildings Continued
Park Name
Replacement
Value Park
Assets
Replacement
Value Building(s)
Asset
Total
Replacement
Cost
Public Open Space
Agnews Historic Park, Mansion & Auditorium 3,278,089$ -$ 3,278,089$ Civic Center Park 937,765 - 937,765 Ulistac Natural Area 306,362 - 306,362 Subtotal Public Open Space 4,522,216$ -$ 4,522,216$ Recreation Facilities
Raymond G. Gamma Dog Park 377,960$ -$ 377,960$ Reed & Grant Street Sports Park - - - Santa Clara Senior Center 508,130 32,546,908 33,055,038 Santa Clara P.A.L. BMX Track - - - Santa Clara Youth Soccer Park 5,907,808 7,043,303 12,951,111 Subtotal Recreation Facilities 6,793,898$ 39,590,211$ 46,384,109$ Recreational Trails 4,301,154$ -$ 4,301,154$ Joint Use Facilities
Buchser Tennis Courts 591,400$ -$ 591,400$ Mission College Sports Complex 6,968,950 3,419,649 10,388,599 Elmer Johnson Field 459,639 56,982 516,621 Mission City Center for the Performing Arts - 40,462,347 40,462,347 Montague Swim Center 398,429 5,253,915 5,652,344 Townsend Field 643,926 2,400,000 3,043,926 Washington Park Baseball Field 1,286,701 2,296,838 3,583,539 Steve Carli Sports Field - - - Skate Park 928,485 458,756 1,387,241 Teen Center 269,536 9,291,939 9,561,475 Walter E. Schmidt Youth Activity Center - 20,968,986 20,968,986 Subtotal Joint Use Facilities 11,547,066$ 84,609,412$ 96,156,478$ Total Replacement Cost 88,526,756$ 251,973,004$ 340,499,760$ Source: City of Santa Clara; Facilities Condition Assessment Prepared by Kitchell For City of Santa Clara, California, 2018.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 12 Parkland Unit Costs
Table 5 shows the estimated cost per acre for developing parkl and, including land acquisition.
The land value of $3.9 million per acre is the average acquisition cost per acre in the City, based on an appraisal of a hypoth etical acre of undeveloped land the three zip codes in the City. See Appendix Table A.1 for the results of the appraisal. The value of park assets and building assets is from Table 4 is summarized here.
The value of all assets, is allocated across all existing improved parkland acres and added to the cost of land acquisition per acre to determine the total cost to develop an acre of parkland in the City.
Table 5: Parkland Unit Costs
Item Total Value
Park Assets 88,526,756$
Building Assets 251,973,004
Total - Park Improvements Replacement Cost 340,499,760$ Improved Park Acres 254.99
Improvements Cost per Acre 1,335,000$
Land Acquisition1 3,922,000$
Total Parkland Acquisition and Improvement Cost per Acre 5,257,000$ Note: Figures have been rounded to the nearest thousand. 1 Average value of land acquisition per acre in the follow ing zip codes: 95050, 95051 and 95054.
Sources: Tables 3, 4 and Appendix Table A.1.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 13 Quimby Justification Parkland Inventory (as of 2010) Table 6 displays the City’s inventory of dev eloped and undeveloped parkland as of 2010. This is included to justify the Quimby standard , since the Quimby Act requires that population estimates from the most recent federal Census be used to calculate a jurisdiction’s parkland standards .
Consequently, the parkland inventory used to calculate the standard must correspond with the year of the population estimates to accurately calculate the standard. Per the Quimby Act, the City can require dedication at a minimum standard of 3.0 acres per 1,000 residen ts if it’s existing parkland standard as of the last federal census was less than 3.0 acres per 1,000 residents. This inventory has been modified slightly since the 2014 study to correct anomalies that have come to light when the 2018 inventory was being reviewed.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 14 Table 6: Quimby Justification Inventory - Parks in 2010 Park Name Address
2010
Developed
2010
Undeveloped
Community Parks
Central Park 909 Kiely Boulevard 45.04 -
Subtotal Community Parks 45.04 -
Mini/Pocket Parks
Geof Goodfellow Sesquicentennial Park 1591 El Camino Real 0.18 - Memorial Cross Park 2501 De La Cruz Boulevard 0.34 - Thomas Barrett Park (formerly BAREC) 1885 Worthington Circle - 1.00 Rotary Park 1490 Don Avenue 0.20 -
War Memorial Playground 295 Monroe Street 0.87 - Subtotal Mini/Pocket Parks 1.59 1.00
Neighborhood Parks
Agnew Park 2250 Agnew Road 1.97 -
Bowers Park 2582 Cabrillo Avenue 8.70 -
Bracher Park 2560 Alhambra Drive 3.45 -
City Plaza Park Lexington & Main Street 1.60 - Earl R. Carmichael Park 3445 Benton Street 8.32 - Everett Alvarez Jr. Park 2280 Rosita Drive 1.61 - Fairway Glen Park 2051 Calle de Primavera 4.00 - Central Park Annex Miles Drive - 2.30
Fremont Park 1303 Fremont Street 2.66 -
Fuller Street Park 4641 Fuller Street 2.39 -
Henry Schmidt Park 555 Los Padres Boulevard 7.50 - Homeridge Park 2985 Stevenson Street 4.28 -
Jenny Strand Park 250 Howard Drive 4.47 5.22
Larry J. Marsalli Park 1425 Lafayette Street 7.26 - Lick Mill Park 4750 Lick Mill Boulevard 9.90 - Live Oak Park 4025 Rivermark Parkway 9.98 -
Machado Park 3360 Cabrillo Avenue 2.65 -
Mary Gomez Park 651 Bucher Avenue 5.64 -
Maywood Park 3330 Pruneridge Avenue 6.98 -
Montague Park 3595 MacGregor Lane 7.51 -
Parkway Park 3675 Forest Avenue 4.50 -
Steve Carli Park 1045 Los Padres 1.60 -
Thamien Park 4321 Lick Mill Boulevard 3.40 -
Warburton Park & Pool 2250 Royal Drive 3.95 -
Westwood Oaks Park 460 La Herran Drive 1.75 -
Subtotal Neighborhood Parks 116.05 7.52
Source: City of Santa Clara.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 15 Table 6: Quimby Justification Inventory - Parks in 2010 Continued Park Name Address
2010
Developed
2010
Undeveloped
Public Open Space
Agnews Historic Park, Mansion & Auditorium4030 Lafayette Street 14.50 - Civic Center Park 1525 El Camino Real 1.63 -
Ulistac Natural Area 4901 Lick Mill Boulevard - 40.08 Subtotal Public Open Space 16.13 40.08
Recreation Facilities
Raymond G. Gamma Dog Park 888 Reed Street 1.72 - Santa Clara Senior Center 1303 Fremont Street 2.14 - Santa Clara P.A.L. BMX Track 5451 Lafayette St. - - Santa Clara Youth Soccer Park 5049 Centennial Boulevard 11.00 - Subtotal Recreation Facilities 14.86 -
San Tomas Aquino/Saratoga Creek Trail
Reach 1 Bay Trail to Agnew Road 1.70 -
Reach 2 Agnew Road to Scott Blvd. 0.81 -
Reach 3 Scott Bldv. to Monroe St. 1.21 -
Reach 4 Monroe St. to Pruneridge Ave. 3.87 0.20 Subtotal Recreational Trails 7.59 0.20
Joint Use Facilities
Mission College Sports Complex 3000 Mission College Blvd 19.40 - Elmer Johnson Field Buchser Campus 5.10 -
Mission City Center for the Performing Arts Wilcox High School - - Montague Swim Center Montague Park 2.50 -
Townsend Field Buchser Campus 5.00 -
Washington Park Baseball Field Buchser Campus 8.20 - Steve Carli Sports Field 1045 Los Padres 3.92 - Skate Park 2440 Cabrillo Avenue 0.90 -
Teen Center 2446 Cabrillo Avenue School 1.00 - Walter E. Schmidt Youth Activity Center 2450 Cabrillo Avenue 1.50 - Subtotal Joint Use Facilities 47.52 -
Total 248.78 48.80
Source: City of Santa Clara.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 16 Improved Parkland Equivalent
Before calculating the existing standards, unimproved parkland owned by the City must be converted to an equivalent amount of improved parkland. Table 7 details this conversion. The conversion is based on the ra tio of the cost of an unimproved acre of land relative to an acre of improved parkland. The assumptions for the value of undeveloped and developed parkland are shown above in Table 5. The improved parkland equivalent is calculated for both the existing inventory of parkland, and for the inventory of parkland in 2010.
Table 7: Improved Parkland Equivalent
Type Cost per Acre Acres
Unimproved Parkland 3,922,000$
Improved Parkland 5,257,000
Unimproved Parkland Land Costs as a 75%
Relative Percentage of Parkland Costs
Mitigation Fee Act
Existing Unimproved Parkland 97.89
Improvement Factor x 75%
Equivalent Improved Acres 73.42
Quimby Act
Unimproved Parkland in 2010 48.80
Improvement Factor x 75%
Equivalent Improved Acres 36.60
Note: Figures have been rounded.
Sources: Tables 3, 5 and 6.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 17 Park Facility Standards
Park facility standards establish a reasonable relationship between new development and the need for expanded park facilities. Information regarding the City’s exist ing inventory of existing parks facilities was obtained from City staff.
The most common measure in calculating new development’s demand for parks is the ratio of park acres per resident. In general, facility standards may be based on the Mitigation Fee Ac t (using a city’s existing inventory of park facilities), or an adopted policy standard contained in a master facility plan or general plan. Facility standards may also be based on a land dedication standard established by the Quimby Act .1 The land dedica tion standard refers to the number of acres per 1,000 residents that the required land dedication or a fee in-lieu of land dedication is based on . A typical Quimby Act s tandard for land dedication is 3.0 acres per 1,000 residents , though the standard can v ary by jurisdiction. Another example of a land dedication standard can be found in a city that charges at 5.0 acres per 1,000 residents to meet its general plan goals.
The standards used in this analysis are discussed in depth below.
Mitigation Fee Act
The Mitigation Fee Act does not dictate use of a particular type or level of facility standard for public facilities fees. To comply with the findings required under the law, facility standards must not burden new development with any cost associated with facility deficiencies attributable to existing development.2 A simple and clearly defensible approach to calculating a facility standard is to use the city’s existing ratio of park acreage per 1,000 residents. Under this approach, new development is requ ired to fund new park facilities at the same level as existing residents have provided those same types of facilities to date.
Quimby Act
The Quimby Act does specify facility standards to use for parkland dedication. The Act only includes dedication of parkland and does not require construction of park improvements. The Act specifies that the dedication requirement must be a minimum of 3.0 acres and a maximum of 5.0 acres per 1,000 residents. Funds collected through the Quimby ordinance can only be used f or purchasing land to create neighborhood and community parks, not open space. The city can require residential developers to dedicate above the three-acre minimum if the city’s existing park standard as of the last Census justifies the higher level (up to five acres per 1,000 residents). The standard used must also conform to the City’s adopted general or specific plan standards.
The Quimby Act only applies to land subdivisions. A city cannot apply the Quimby Act to development on land subdivided prior to adoption of a Quimby ordinance, such as development on infill lots. The Quimby Act also would not apply to residential development on future approved projects on single parcels, such as many types of multi-family development.
The Quimby Act allows payment of a fee in lieu of land dedication. The fee is calculated to fund acquisition of the same amount of land that would have been dedicated. The fee does not include the cost of park improvements because the land dedication requirement does not include improvements. Developments paying the Quimby Act fee in -lieu of dedication are also subject to a Mitigation Fee Act fee for park improvements, calculated at the existing standard.
The Quimby Act allows use of in -lieu fee revenue for developing new or rehabilita ting existing neighborhood or community park or recreational facilities to serve the subdivision paying the fee, including land acquisition , unless certain conditions are met. The City can use Quimby fee
1 California Government Code §66477.
2 See the benefit and burden findings in Chapter 5, Mitigation Fee Act Findings. • WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 18 revenue for purpose of developing new or rehabilitat ing existing park or recreational facilities in a neighborhood other than the neighborhood paying the fees if the following conditions are met:3
1. The neighborhood in which the fees are to be spent has a standard of less than 3.0 park area per 1,000 members of the neighborhood population.
2. The neighborhood paying the fees has park standard that meets or exceeds 3.0 acres per 1,000 persons.
3. The City Council holds a public hearing before using the fees.
4. The City Council makes a finding that it is reasonably foreseeable that future inhabitants of the subdivision paying the fees will use the proposed park and recreational facilities in the neighborhood where the fees are used.
5. The fees are used within a specified radius that complies with the city's Quimby ordinance and are consistent with the a dopted general plan or specific pla n of the city. “Specified radius” includes a planning area, zone of influence, or other geographic region designated by the city.
3 Conditions are paraphrased. Refer to California Government Code §66477(a)(3)(B) for full text. • WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 19 City of Santa Clara Park Facilities Standards
To calculate new development’s need for new parks, municipalities commonly us e a ratio expressed in terms of developed park acres per 1,000 residents. Table 8 shows the existing standard for improved park acreage per 1,000 residents and documents the City’s standard as of the last Census for the Quimby Act standard.
Table 8: Level of Service Standards
Mitigation Fee
Act Standard
(2018)
Quimby Act
Standard (2010)1
Improved Park Acreage 254.99 248.78
Unimproved Park Acreage Equivalent 73.42 36.60 Total - Park Acres 328.41 285.38
Service Population (Residents) 126,408 116,468 Level of Service Standard (Acres per 1,000 Residents) 2.60 2.45 Sources: Tables 1, 3, 6 and 7.
1 The City can charge Quimby fees in-lieu of parkland dedication, or require parkland dedication at the 3.0 acre per 1,000 resident standard because its existing standard as of the last Federal Census in 2010 w as less than 3.0 acres per 1,000 residents.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 20 Facilities Needed to Accommodate New Development
Table 9 shows the park facilities needed to accommodate new development at the existing standard. To achieve the standard by the planning horizon, depending on the amount of development subject to the Quimby Act, new development must fund the purchase and improvement of between 73.82 and 85.18 parkland acres, at a total cost ranging between $388.1 and $432.6 million.
The facility standards and resulting fees under the Quimby Act are higher because development will be charged to provide 3.0 acres of parkland per 1,000 residents, and 2.60 acres of improvements, whereas development not subject to the Quimby Act will be charged to provide only 2.60 acres of parkland per 1,000 residents, and 2.60 acres of improvements. Since the exact amount of development that will be subject to the Quimby fees is unknown at this time, Table 9 presents the range of total facility costs that may be incurred depending on the amount of development subject to the Quimby Act.
Table 9: Park Facilities to Accommodate New Development Calculation Parkland Improvements Total Range 1
Parkland (Quimby Act), Improvements (Mitigation Fee Act) 2 Facility Standard (acres/1,000 residents) A 3.00 2.60
Resident Growth (2018-2035) B 28,392 28,392
Facility Needs (acres) C = (B / 1,000) x A 85.18 73.82
Average Unit Cost (per acre) D 3,922,000$ 1,335,000
Total Cost of Parkland To Serve New Development E = C x D 334,075,960$ 98,549,700$ 432,625,660$ Parkland and Improvements - Mitigation Fee Act 3
Facility Standard (acres/1,000 residents) F 2.60 2.60
Resident Growth (2018-2035) G 28,392 28,392
Facility Needs (acres) H = (G / 1,000) / F 73.82 73.82
Average Unit Cost (per acre) D 3,922,000$ 1,335,000
Total Cost of Parkland To Serve New Development I = H x D 289,522,040$ 98,549,700$ 388,071,740$ Note: Totals rounded to the thousands.
Sources: Tables 1, 5, and 8.
2 Cost of parkland to serve new development show n if all development is subject to the Quimby Act (subdivisions). Parkland charged at 3.0 acres per 1,000 residents; improvements charged at the existing standard. 3 Cost of parkland to serve new development show n if all development is subject to the Mitigation Fee Act. Parkland and improvements are charged at the existing standard.
1 Values in this column show the range of the cost of parkland acquisition and development should all development be either subject to the Quimby Act, or to the Mitigation Fee Act, respectively. • WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 21 Parks Cost per Capita
Table 10 shows the cost per capita of providing new park facilities at the Quimby standard, and the existing facility standard , by zip code . The cost per capita is shown separ ately for land and improvements. The costs per capita in this table will serve as the basis of three fees:
• A Quimby Act Fee in -lieu of land dedication. This fee is payable by residential development occurring in subdivisions.
• A Mitigation Fee Act Fee for land acquisition. This fee is payable by residential development not occurring in subdivisions.
• A Mitigation Fee Act Fee for parkland improvements. This fee is payable by all residential development.
A development project pays either the Quimby Act Fee in-lieu of land dedication, or the Mitigation Fee Act Fee for land acquisition , not both. All development projects pay the Mitigation Fee Act Fee for park improvements.
Table 10: Cost per Capita
Calculation Quimby Act OR
Mitigation
Fee Act AND Improvements
Zip Code 95050
Parkland Investment (per acre) A 3,738,000$ 3,738,000$ 1,335,000$ Level of Service (acres per 1,000 residents) B 3.00 2.60 2.60 Total Cost Per 1,000 capita C = A x B 11,214,000$ 9,718,800$ 3,471,000$ Cost Per Resident D = C / 1,000 11,214$ 9,719$ 3,471$ Zip Code 95051
Parkland Investment (per acre) A 3,993,000$ 3,993,000$ 1,335,000$ Level of Service (acres per 1,000 residents) B 3.00 2.60 2.60 Total Cost Per 1,000 capita C = A x B 11,979,000$ 10,381,800$ 3,471,000$ Cost Per Resident D = C / 1,000 11,979$ 10,382$ 3,471$ Zip Code 95054
Parkland Investment (per acre) A 4,035,000$ 4,035,000$ 1,335,000$ Level of Service (acres per 1,000 residents) B 3.00 2.60 2.60 Total Cost Per 1,000 capita C = A x B 12,105,000$ 10,491,000$ 3,471,000$ Cost Per Resident D = C / 1,000 12,105$ 10,491$ 3,471$ Sources: Tables 5, 9 and Appendix Table A.1.
Land 1
1 A development project pays either the Quimby Act Fee In-Lieu of land dedication, or the Mitigation Fee Act Fee for land acquisition, not both.
All development projects pay the Mitigation Fee Act Fee for park improvements. • WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 22 Use of Fee Revenue
The City plans to use park facilities fee revenue to purchase parkland or construct improvements to add to the system of park and recreation fa cilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. Depending on the amount of development subject to the Quimby Act, new developme nt must fund the purchase and improvement of between 73.82 and 85.18 parkland acres through the planning horizon of 2035.
Fee Schedule
To calculate fees by land use type, the investment in park facilities is determined on a per resident basis for both land acquisition and improvement. These inve stment factors (shown in Table 10) are investment per capita based on the unit cost estimates and facility standards.
The City anticipates that the park fees would be the primary revenue source to fund new development’s investment in park facilities. Tables 11.a, 11.b and 11.c show the park facilities fee based on the minimum Quimby standard and the existing standard for each zip code in the City, respectively. The City would collect the fee based on only one of the two approaches as appropriate. Each fee includes a component for park improvements based on the City’s existing standard. The investment per capita is converted to a fee per dwelling unit.
The total fee includes an administrative charge to fund costs that include: (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 23 Table 11.a: Park and Recreation Facilities Fee Schedule - Zip Code 95050 A B C = A x B D = C x 0.02 E = C + D
Cost Per Base Admin
Land Use Capita Density Fee 1 Charge1, 2 Total Fee 1
Quimby Act
Single Family
Parkland 11,214 $ 2.98 33,418 $ 668$ 34,086 $ Improvements 3,471 2.98 10,344 207 10,551 Total 14,685 $ 43,762 $ 44,637 $
Multifamily
Parkland 11,214 $ 2.40 26,914 $ 538$ 27,452 $ Improvements 3,471 2.40 8,330 167 8,497 Total 14,685 $ 35,244 $ 35,949 $
Mitigation Fee Act
Single Family
Parkland 9,719 $ 2.98 28,963 $ 579$ 29,542 $ Improvements 3,471 2.98 10,344 207 10,551 Total 13,190 $ 39,307 $ 40,093 $
Multifamily
Parkland 9,719 $ 2.40 23,326 $ 467$ 23,793 $ Improvements 3,471 2.40 8,330 167 8,497 Total 13,190 $ 31,656 $ 32,290 $
Sources: Tables 2 and 10.
1 Fee per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 24 Table 11.b: Park and Recreation Facilities Fee Schedule - Zip Code 95051 A B C = A x B D = C x 0.02 E = C + D
Cost Per Base Admin
Land Use Capita Density Fee 1 Charge1, 2 Total Fee 1
Quimby Act
Single Family
Parkland 11,979 $ 2.98 35,697 $ 714$ 36,411 $ Improvements 3,471 2.98 10,344 207 10,551 Total 15,450 $ 46,041 $ 46,962 $
Multifamily
Parkland 11,979 $ 2.40 28,750 $ 575$ 29,325 $ Improvements 3,471 2.40 8,330 167 8,497 Total 15,450 $ 37,080 $ 37,822 $
Mitigation Fee Act
Single Family
Parkland 10,382 $ 2.98 30,938 $ 619$ 31,557 $ Improvements 3,471 2.98 10,344 207 10,551 Total 13,853 $ 41,282 $ 42,108 $
Multifamily
Parkland 10,382 $ 2.40 24,917 $ 498$ 25,415 $ Improvements 3,471 2.40 8,330 167 8,497 Total 13,853 $ 33,247 $ 33,912 $
Sources: Tables 2 and 10.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
1 Fee per dw elling unit.
• WILLDANI Financial Services
City of Santa Clara Parks and Recreation Facilities Fee Study 25 Table 11.c: Park and Recreation Facilities Fee Schedule - Zip Code 95054 A B C = A x B D = C x 0.02 E = C + D
Cost Per Base Admin
Land Use Capita Density Fee 1 Charge1, 2 Total Fee 1
Quimby Act
Single Family
Parkland 12,105 $ 2.98 36,073 $ 721$ 36,794 $ Improvements 3,471 2.98 10,344 207 10,551 Total 15,576 $ 46,417 $ 47,345 $
Multifamily
Parkland 12,105 $ 2.40 29,052 $ 581$ 29,633 $ Improvements 3,471 2.40 8,330 167 8,497 Total 15,576 $ 37,382 $ 38,130 $
Mitigation Fee Act
Single Family
Parkland 10,491 $ 2.98 31,263 $ 625$ 31,888 $ Improvements 3,471 2.98 10,344 207 10,551 Total 13,962 $ 41,607 $ 42,439 $
Multifamily
Parkland 10,491 $ 2.40 25,178 $ 504$ 25,682 $ Improvements 3,471 2.40 8,330 167 8,497 Total 13,962 $ 33,508 $ 34,179 $
Sources: Tables 2 and 10.
1 Fee per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.• WILLDANI Financial Services
26 4. Implementation
Impact Fee Program Adoption Process
Impact fee program adoption procedures are found in the California Government Code Section 66016. Adoption of an impact fee program requires the City Council to follow certain procedures including holding a p ublic meeting. A fourteen-day mailed public notice is required for those registering for such notification. Data, such as an impact fee report, must be made available at least 10 days prior to the public meeting. Your legal counsel should inform you of any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. After adoption there is a mandatory 60 -day waiting period before the fees go into effect. This procedure must also be followed for fee increases.
Inflation Adjustment
The City’s Park and Recreation Land Fee ordinance requires the City Council review the fair market values that the fees are based on not less than annually and set the values in a Council resolution.4 This allows the fees to conform to current land values in the City. A separate index for construction costs should be used to annually adjust the improvements fee under the Mitigation Fee Act. The construction cost index can be based on the City’s recent capital project experience or can be taken from any reputable source, such as the Engineering News-Record.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of the Act. For facilities to be funded by a combination of public fees and oth er revenues, identification of the source and amount of these non-fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important.
Fee Accounting
The City should deposit fee revenues into separa te restricted fee accounts for each of the fee categories identified in this report. Fees collected for a given facility category should only be expended on new facilities of that same category.
Programming Revenues and Projects with the CIP
The City shoul d commit all projected fee revenues and fund balances to specific projects in its Capital Improvements Program. These should represent the types of facilities needed to serve growth and described in this report. The use of the CIP in this manner documents a reasonable relationship between new development and the use of those revenues. The CIP also provides the documentation necessary for the City to hold funds in a project account for longer than five years if necessary to collect sufficient monies to complete a project.
The City may decide to alter the scope of the planned projects or to substitute new projects as long as those new projects continue to represent an expansion of the City’s facilities. If the total cost of facilities varies from the total cos t used as a basis for the fees, the City should consider revising the fees accordingly.
4 City of Santa Clara City Code 17.35.040(b)(1)
27 5. Mitigation Fee Act Findings
Fees are assessed and typically paid when a building permit is issued and imposed on new development projects by local agencies respo nsible for regulating land use (cities and counties).
To guide the imposition of facilities fees, the California State Legislature adopted the Mitigation Fee Act with Assembly Bill 1600 in 1987 and subsequent amendments. The Act, contained in California Government Code §§66000 – 66025, establishes requirements on local agencies for the imposition and administration of fees. The Act requires local agencies to document five statutory findings when adopting fees.
The five findings in the Act required for adoption of the maximum justified fees documented in this report are: 1) Purpose of fee, 2) Use of fee Revenues, 3) Benefit Relationship, 4) Burden Relationship, and 5) Proportionality. They are each discussed below and are supported throughout this report.
Purpose of Fee
▪ Identify the purpose of the fee (§66001(a)(1) of the Act).
We understand that it is the policy of the City that new development will not burden the existing service population with the cost of facilities required to accommodate growth. Council Goal 2013- 14 states that as a strategic objective, the City would “ Develop a new Housing Development Impact fee for parks acquisition and facility development .” The purpose of the fees proposed by this report is to implement this policy by providing a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide parks and recreational facilities to new development.
Use of Fee Revenues
▪ Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001(a)(2) of the Act).
Fees proposed in this report, if enacted by the City, would be available to fund expanded facilities to serve new development. Facilities funded by these fees are designated to be located within the City. Fees addressed in this report have been identified by the City to be restricted to funding parks and recreation facilities.
An estimate of the amount of parkland needed to serve new development is identified in Chapter 3 of this report. More thorough descriptions of certain planned facilities, including their specific location, if known at this time, are included in master plans, capital impro vement plans, or other City planning documents or are available from City staff. The City may change the list of planned facilities to meet changing needs and circumstances of new development, as it deems necessary.
The fees should be updated if these amen dments result in a significant change in the fair share cost allocated to new development.
Benefit Relationship
▪ Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act).
City of Santa Clara Parks and Recreation Facilities Fee Study 28 We expect that the City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development as described above unde r the “Use of Fee Revenues” finding. The City should keep fees in segregated accounts. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the additional residents and workers associated with new development . Under the Act, fees are not intended to fund planned facilities needed to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non -residential use classifications that will pay the fees.
Burden Relationship
▪ Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act).
Facilities need is based on a facility sta ndard that represents the demand generated by new development for those facilities. Facilities demand is determined as follows:
The service population is established based upon the number of residents living in Santa Clara.
Service population correlates to the demand for parks and recreation facilities.
For parks and recreational facilities, demand is measured by a single facility standard (park acres per 1,000 service population) that can be applied across land use types to ensure a reasonable relationship to the type of development.
The standards used to identify growth needs are also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new developmen t will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.
Chapter 2, Land Use Assumptions provides a description of how service population and growth projections are calculated. Facility standards are described in the Facility Inventories, Plans & Standards sections of in Chapter 3.
Proportionality
▪ Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act).
The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated service population growth the project will accommodate. Fees for a specific project are based on the project’s size or increases in the number of dwelling units. Larger n ew development projects can result in a higher service population, resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees can ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project.
See Chapter 2, Land Use Assumptions for a description of how service population or dwelling unit occupancy factors are determined for different types of land uses. See the Fee Schedule section of Chapter 3 for a presentation of the proposed facilities fees. 29 Appendix
Appendix Table A.1: Land Valuation
Zip Code
Average Value per
Acre
95050 $ 3,738,000
95051 3,993,000
95054 4,035,000
Source: Appraisal Report Valuation of the Average per Acre Land Value of High-Density Residential, Medium-Density Residential, Low and Very Low -Density Residential, Commercial/Retail, and Industrial Properties Located in the Three Existing Zip Codes (95050, 95051, and 95054) City of Santa Clara, California, Prepared By: the Schmidt- Prescott Group, Inc, 2018.
Attachment A
Supplemental Instructions
for the Appraisal of the Fair Market Value of Land
The following information and instructions will be used by the City when setting the land value used in the formula for determining the impact fees due in lieu of park and recreational land dedication pursuant to Santa Clara City Code 17.35. (Approved by Santa Clara City Council—June 7, 2016)
Background.
On July 15, 2014, Council added Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code to ensure that new residential development provides adequate community and neighborhood park land for active recreational uses and/or pays a fee in-lieu of parkland dedication to mitigate the impacts of the new growth pursuant to the California Quimby Act and/or Mitigation Fee Act.
17.35.040 Formula for calculation of fee in lieu of land dedication. (a) When a fee is required to be paid in lieu of parkland dedication, the maximum amount of such fee shall be determined by the fair market value of the amount of land that would otherwise be required to be dedicated pursuant to SCCC 17.35.030, as set forth below. The date of valuation of the property for in-lieu fee purposes shall be the date that the City determines that the developer’s application for a parcel map or tentative subdivision map, or application for projects not involving a subdivision, is complete.
(b) Fair Market Value.
(1) The City shall determine the fair market value of the property by using the average per acre land value for property in the City of Santa Clara, based upon a survey of land values and sale records in the City. The City Council shall set a minimum of three such average values, one for each of the three existing Zip Codes in the City (95050, 95051, 95054). The City Council may, at its discretion, set average values for additional subregions of the City. The City Council shall review the fair market values not less than annually and set the values in a Council resolution. (2) If the developer objects to this determination of fair market value, the developer may elect to have the value established by appraisal. If the developer chooses this option, the developer shall deposit with the City an amount sufficient to cover the cost of an appraisal, which the City shall conduct. The appraisal shall be completed prior to approval of the tentative or parcel map or, for developments not involving a subdivision, prior to the issuance of a building permit. (c) Based on the determination of fair market value set forth in subsection (b)(1) of this section, for each of the dwelling unit categories, the City Council shall set the amount of fees to be paid in lieu of parkland dedication in a Council resolution, which the Council shall review annually. (Ord. 1928 § 3, 7-15-14).
Attachment A—Supplemental Instructions for Appraisal Page 1 of 3 Attachment 2
City of
Santa Clara
The Center of What·s Possible
Guidelines for Appraiser:
a. Appraiser is to provide a “Fair Market Value” for an average acre of land (hypothetical, rectangular, useable site) for property in each of the three existing City of Santa Clara Zip Codes 95050, 95051, 95054. The opinion will conform to Uniform Standards of Professional Appraisal Practice.
b. Valuation Date: December 31 of each year.
c. Location & Property Sales Data Set Boundaries: Data set will begin with sales data from within Santa Clara City limits.
d. Data Set Date Range: Use data from January 1
st to December 31st of each year.
Example: January 1, 2015 to December 31, 2015 for “December 31, 2015 Valuation Date.” See contingencies below.
e. Property Types: Use all of the following property types: Single Family (low and very low density), High Density Residential, Medium Density Residential, Commercial, Industrial, Lots and Land.
f. Contingencies for Limited Data Set of each Property Type: If there are insufficient, credible data points or sales of a particular property type, then appraiser will explore and use comparable sales from the local competitive market area, adjacent to City of Santa Clara. A fixed distance from City of Santa Clara city limit is not given, however a compelling, rational basis for the selection of the competitive market area must be given by the appraiser in the report. Preference is for closer, more recent, and comparable; discretion is given to the appraiser.
g. Sales Transactions Data not to be used: Do not use transactions if they are not an arms-length transaction, have encumbered/clouded title, are environmentally impaired site, or are more than three (3) years old.
h. Inflation factors for Comparable between 1 and 3 years: An inflation factor will be computed and applied to comparable sales over one year based on reasonable and rational considerations such as sales and rental trends or other appropriate methods.
i. Sales Transactions Data that may be included: May use real estate sales transactions by the City of Santa Clara for additional neighborhood or community parkland.
j. Data Values excluded: No values or set of values at the high or low end of the data set are to be excluded from consideration in the average values on the sole basis of being relatively high or low; however, a check for consistency among comparable values will be done, and a rational basis should be provided for credible comparable transactions if not used.
Attachment A—Supplemental Instructions for Appraisal Page 2 of 3
k. Research Factors to be considered for Comparable sales: The factors to be used to compare property values include, but are not limited to physical factors, economic factors, market conditions verification to parcel maps, public records, CoStar data bank. Additional factors may be used provided there is a rational basis for doing so.
l. Reconciliation of value differences: The approach will be comparative, iterative, qualitative and quantitative, and will be made at the appraiser’s discretion.
m. Weight to be applied to Property Types: The weighted average of each property type will be based on the percentage of land area in the sales transactions, for example, if 25% of total acreage is high density residential, then the relative weight of that property type will be 25%. (The weight will not be done by the quantity of sales of each type or the percent of value of sales of each type).
n. Reporting: A draft valuation report will be generated by March 15. City will provide for a two week circulation and comment period. The valuations included the final valuation report will be used in the calculation formula for fees prepared by staff to be reviewed by Council as part of the annual City budget process and Municipal Fee Schedule adoption by June 30. Fees will be implemented on or after July 1 depending upon Quimby Act or Mitigation Fee Act provisions of the Council resolution.
Attachment A-Supplemental Instructions for Parkland Dedication In Lieu Fee Process and Schedule 2016
Attachment A—Supplemental Instructions for Appraisal Page 3 of 3
ANNUAL LAND VALUATION APPRAISAL REPORT
VALUATION OF
The Average per Acre Land Value of High-Density Residential, Medium-Density Residential, Low-Density Residential, Very Low-Density Residential, Commercial, &Industrial Properties Located in Three Zip Codes (95050, 95051, and 95054)
City of Santa Clara, California
Santa Clara County
PREPARED FOR
Mr. Damon Sparacino, Director of Parks and Recreation
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
PREPARED BY
Frank E. Schmidt, MAI, SRA
Frank Schmidt & Associates
EFFECTIVE DATE OF VALUE OPINION
December 31, 2024
Frank Schmidt & Associates Phone: 510- 468-9219 [email protected]
March 1, 2025
Mr. Damon Sparacino, Director of Parks and Recreation
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Re: Annual Land Valuation Appraisal Report
Average Value of Three Hypothetical 1-Acre Lots,
One for Each Zip Code Comprising 95050, 95051, and 95054 Santa Clara, California, U.S.A.
Mr. Damon Sparacino:
Pursuant to your request, I have completed the a nnual land valuation appraisal to aid the City of Santa Clara in establishing park impact fees. Follow ing this letter of transmittal is my appraisal and analysis opining the value of a hypothetical 1-acre lot in each of the City’s three zip codes.
In June 2016 the City of Santa Clara City C ouncil approved Supplementa l Instructions for the Appraisal of the Fair Market Value of land used in the Parkland Dedication In-Lieu Fee. These supplemental instructions and guidelines for the Appraisal are displayed in the Addenda. One of the supplemental instructions was that the valuation date occurs each year on December 31. Since the date of my opinion of value, December 31, 2024 precedes the date I wrote and transmitted this appraisal by about 2 months, this is considered a retrospective appraisal as defined by the Uniform Standards of Professional Appraisal Practice. Since this is a retrospective value, it is important to note that I only considered data that was availabl e and/or public as of th e date of value. The exception to this was the 2024 land area data provided by Old Republic Title Company which was not available until February 2025, and some brokerage reports published in January and February 2025, but containing 2024 data.
I have appraised the subject of this appraisal numerous times since 2014, and most recently with a date of opinion of December 31, 2024. Based on land area, in 2021, approximately 42% of all transactions sold were industrial and commercial, while 58% were categorized as residential. In 2022, commercial/industrial sales accounted for about 27.06% of the to tal while residential sales accounted for about 72.94% of the total. In 2023, approximately 50% of all transactions sold were industrial and commercial, while the remaining 50% were categor ized as reside ntial. In 2024, commercial/industrial sales accounted for 56.86% of the total while residential sales accounted for Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 2
43.14% of the total. Data provided by Old Republic Title Company shows 448 single family home sales in 2024 compared to 386 single family home sales in 2023. However, the median improved residential selling price in 2024 in the city of Santa Clara had generally only increased slightly throughout the year with some major price oscillation noted in the last three quarters. This resulted in similar residential unit values for very low-density land, low density land, and medium density land in 2024. However, high density land declin ed slightly from 2023. Commercial land values were unchanged in both 2023 and 2024. Industrial la nd values declined slightly from 2023. In 2024, the combination of higher interest rates, the 2024 elections, and expected slower economic growth has impacted the market. All these factors resulted in only slight downward changes to the 2024 values for the hypothetical one-acre lots for each zip code compared to 2023.
To complete this appraisal, I conducted an inve stigation, gathered data, and made the analyses necessary to enable me to fulfill the purpose of this assignment, which was to estimate the fair market value of a hypoth etical 1-acre lot comp rising components of hi gh-density residential, medium-density residential, low-density residential, very low-density residential, commercial, and industrial, to form and report the average value per acre of land in the three existing Zip Codes in the City of Santa Clara consisting of 95050, 95051, and 95054. The average value was established using the weighted average of these different property types, based on the percentage of total land area associated with the different property types that sold in the City of Santa Clara in the 12 months prior to the date of value and base d on land area data provide d by Old Republic Title Company.
I understand that this Appraisal Report is intended for use by the C lient, the City of Santa Clara, for assistance in determining park impact fees.
Hypothetical Conditions, Extraordinary Assumptions, and Contingencies
Hypothetical Condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.”1I supposed the following hypothetical conditions:
The fair market value was estimated based on different land value components applied to a hypothetical lot. It was a hypothetical condition of this appraisal that the subject lot was a finished lot and rated average in all other physical, locational, and legal aspects.
Since the hypothetical lot will be comprised of different land value components and it is unlikely the City’s land use ordinances woul d allow the different property types on the same lot, it was necessary to apply a hypothetical condition that each of the following uses
12024-2025Uniform Standards of Professional Appraisal Practice (USA, The Appraisal Foundation,2024) Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 3 would be permitted on the subject lot: high-density residential, medium-density residential, low and very low-density residential, commercial, and industrial.
Extraordinary Assumption is defined as “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.”2
In this appraisal, land areas provided by Old Republic Title Company were used to estimate the weighted average of all the sale transactions that occurred in the City of Santa Clara in 2024. It was an extraordinary assumption of th is appraisal that the land areas provided by Old Republic Title Company were accurate.
The use of these hypothetical conditions and extraordinary assu mption might have affected the assignment results.
There are general assumptions and limiting conditions set forth in this report.
Based on the investigation and analyses undertaken, I formed the opinion that the average value per acre on December 31, 2024, the effective date of opinion, for each zip code was:
Sincerely,
Frank E. Schmidt, MAI, SRA
22020-2021Uniform Standards of Professional Appraisal Practice (USA, The Appraisal Foundation,2020) Zip Code 2024 Average Yalue per Acre
95050 $5,180 ,000
95051 $5,340 ,000
95054 $5,000 ,000
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 4
TABLE OF CONTENTS
EXECUTIVE SUMMARY 5
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 6
CERTIFICATION 8
SCOPE OF THE ASSIGNMENT 9
DEFINITIONS 11
REAL PROPERTY, REAL ESTATE, AND PERSONAL PROPERTY APPRAISED 12 PREVIOUS APPRAISALS 13
REGION & CITY DESCRIPTION 13
MARKET CONDITIONS 17
LAND USE ORDINANCES 35
HIGHEST AND BEST USE 35
APPRAISAL PROCESS 36
AVERAGE VALUE ESTIMATE IN 95050 ZIP CODE 37
AVERAGE VALUE ESTIMATE IN 95051 ZIP CODE 62
AVERAGE VALUE ESTIMATE IN 95054 ZIP CODE 65
RECONCILIATION AND OPINION OF AVERAGE VALUES 68
ADDENDA 70
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 5
EXECUTIVE SUMMARY
CLIENT : City of Santa Clara
LOCATION : City of Santa Clara, California
PROPERTY TYPES : Very Low-Density Resi dential, Low-Density Residential, Medium-Density Residential, High-
Density Residential, Commercial, and Industrial
Land
SITE AREA : Each Hypothetical Lot is One Acre
FLOOD HAZARD STATUS : Zone X; the hypothetical lots are outside any flood zones
EARTHQUAKE FAULT ZONE : The hypothetical lots ar e not located in an Earthquake Fault Zone as designated under the
Alquist-Priolo Earthquake Fault Zoning Act.
GENERAL PLAN, &
HIGHEST AND BEST USE :
EFFECTIVE DATE OF VALUE : December 31, 2024
PROPERTY RIGHTS APPRAISED : Fee Simple Estate
AVERAGE VALUE CONCLUSIONS :
Very Low Den sity Residenti al
Low Den sity Residential
'ledium Den sity R esidentia l
High Den sity Residential
Commerc ial
Industrial
General Plan
, ery Low Density Residential (up to 10 D /AC)
Low Den sity Residential (8 to 19 D /AC)
Medium Den sity Residential (20 to 36 D /AC)
High Density Residential (37 to 50 D /AC)
Regional Commercial
Light Industrial
, ery Low Density Residential (10 D
Low Den sity Residential (13 D /AC)
'ledium Den sity Residential (30 D /AC)
High Den sity Residential (45 D /AC)
Hold for Development of a Commercial Building
Industrial Building
Zip Code 2024 Average Yalue per Acre
95050 $5,180,000
95051 $5,340,000
95054 $5,000,000
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 6
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal and report were made applying these general assumptions:
1. No responsibility was assumed fo r the legal description or for matters including legal or title considerations. Title to the hypothetical prope rties was assumed to be good and marketable and free and clear of all liens, encumbrances, easements, and restrictions except those specifically addressed in this report;
3. Responsible ownership and competent property management were assumed;
4. The information furnished by the Client and ot hers was believed to be reliable. However, no warranty is given for its accuracy;
5. All engineering was assumed correct. Plot plans or any other illustrative material in this report were included only to assist the reader in visualizing the property;
6. It was assumed that there are no hidden or unapparent conditions in the hypothetical properties that render them more or less marketable or va luable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them;
7. Unless otherwise stated in this report, the exis tence of hazardous material, toxic waste, and/or other environmental impairments which may or may not be present on or in the hypothetical properties, was not investigated by this consultant.
As real estate consultants, we are not qualifi ed to properly investigat e this property for any discharge, spillage, uncontrolled loss, seepage, filtration, or storage of hazardous substances which may adversely affect the value of this pr operty. Neither are we qualified to detect the presence of substances such as asbestos, urea-formaldehyde foam insulation, nor other materials that could create an environmental impairment to the subject property or to other property caused by conditions present at the subject property. Our opinion(s) were predicated on the assumption that there is no such material on or in the property that would affect market value. No responsibility was assumed for an y such conditions or for any expertise or engineering knowledge required to discover and/or correct them;
8. It was assumed that there is full compliance w ith all applicable federal, state, and local environmental regulations and laws unless non-compliance is stated, defined, and considered in the report;
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 7
9. It was assumed that all appl icable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal and reported in the report; and
10. It was assumed that all required licenses, ce rtificates of occupancy, consents, or other legislative or administrative authority from an y local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate or other opinion contained in this report are based;
This report has been made with the following limiting conditions:
1. Possession of the report, or a copy thereof, does not carry with it the right of publication or use. It may not be used for any purpose by any person other than the Client(s), for the Intended Use specified in the engagement agreement and/or report;
2. The consultant is not require d to give further consultation, testimony, or attend court for matters involving the subject property unless arrangements have been previously made; and
3. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the Consultant, or the firm with which the Cons ultant is connected) shall be disseminated to the public through advertising, public relati ons, news sales, or other media without prior written consent and approval of the Consultant.
Reader Note:
There may be other appr opriate and more specific limitati ons on our opinions or conclusions identified in the cover letter or report as Hypothetical Conditions, Extraordinary Assumptions, or Contingencies.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 8
CERTIFICATION
I certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions ar e limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.
4. I previously appraised the subject of this report for th e same Client on several occasions, most recently in an appraisal report transmitted March 1, 2024 and having a date of value of December 31, 2023.
5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
6. My engagement in this assignment was not contingent upon developing or reporting predetermined results.
7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
8. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).
9. I have not inspected the property that is the subject of this report since the subject lots are hypothetical.
10. Under my direction, Mr. Dennis Moredock verified the comparable data, performed analysis, and wrote the first draft of the appraisal report.
11. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Pr ofessional Practice of the Appraisal Institute.
12. The use of this report is subject to the requirements of the Appraisal Institute re lating to review by its duly authorized representatives.
13. As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute.
M a r c h 1 , 2 0 2 5
Frank E. Schmidt, MAI, SRA Date
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 9
SCOPE OF THE ASSIGNMENT
Information Provided to the Appraisers
The Client provided excerpts fro m the Parks and Recr eation Facilities Fee Study completed by Willdan Financial Services. Old Republic Title Company provided Santa Clara sales statistics of land areas to assist us in estimating the weighted land average of all the sale transactions that occurred in the City of Santa Cl ara in the 12 months preceding the date of value. We were also provided the “Supplemental Instructions for Appraisal” approved by Santa Clara City Council on June 7, 2016, which are displayed in the Addenda. Lastly, in prev ious appraisals, City Parks provided us with the Park Impact Fee Ordinance (No. 1928).
Extent of Research into Physical Factors
We drove several streets throughout Santa Clara over the past several years including various times in 2016, 2017, 2020, 2021, 2022, 2023, and 2024. We note ch anges that are occurring or have occurred, particularly regarding new developments. We gathered data about land use ordinances for each hypothetical lot and the comparables from the websites of the appropriate municipalities.
Extent of Research into Economic Factors
We gathered, analyzed, and applied macro-eco nomic information gleaned from many sources, including:
The Wall Street Journal
12th District Beige Book
GlobeSt.com
CoStar News
The Kiplinger Letter
DQ News/CoreLogic
We gathered, analyzed, and applied data abou t market conditions an d other micro-economic information from:
Websites of Commercial Brokerages
Commercial and/or residential multiple listing services Silicon Valley Business Journal
San Jose Mercury News
Discussions with agents active in the subject market
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 10 We talked to the buyers, sellers, and agents w hose names we discovered on signage in the neighborhood and during comparable verification. We learned about additional market data from these people.
Extent of Comparable Data Research
We used a variety of sources and subscription services to gather comparable data, including:
Verified Data Files from Other Appraisals
CoStar Group
DataTree
MLSlistings.com
LoopNet
Commercial Real Estate Brokerage Websites
Verification
The most appropriate data that we discovered was verified with a party to the transaction. When that was not possible, we discuss and/or state th e verification source(s), using public record data, subscription services, MLS, etc. in the Analysis section.
Among the comparables selected we studied copies of the assessor’s parcel maps, public record summary, aerial maps, records of survey, and ot her data such as structural, geological, or environmental reports, subdivisi on maps, title reports, etc. We also reviewed planning proposals/approvals and permit histories where appropriate.
Type and Extent of Analysis Applied
The data is summarized on spreadsheets displayed in the Analysis sections following. The analysis was comparative, iterative, qualitative, and quantitative.
Compliance
It was the intent of this appraisal to comply with the requirements of:
The Uniform Standards of Professional Appr aisal Practice (USPAP) including the Ethics and Competency Provisions as promulgated by the Appraisal Standards Board of the Appraisal Foundation.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 11 The Code of Professional Ethics and Standard s of Professional Practice of the Appraisal Institute.
The City of Santa Clara’s “Supplemental Instructions for Appraisal”
DEFINITIONS
According to the California Code of Civil Procedure, Section 1263.320 defines Fair Market Value as:
“(a) 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 determin ed by any method of valuation that is just and equitable.”
Revised federal definitions in the Uniform Act identify the definitions of “market value” and “fair market value” as one and the same. These terms are used interchangeably in this report.
Weighted Average means an average resul ting from the multiplication of each component by a factor reflecting its importance or contribution.
Average Value means a value that is calculated by addi ng values together and then dividing the total by the number of values.
Fee Simple Estate means absolute ownershi p unencumbered by any othe r interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
3 3 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., (Chicago: Appraisal Institute, 2015) Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 12
REAL PROPERTY, REAL ESTATE, AND PERSONAL PROPERTY APPRAISED
Real Property is defined as all of the interests, benefits, and rights in the ownership of the physical real estate, that is, the bundle of rights with wh ich the ownership of the real estate is endowed.
Real estate is defined as physical land and appurtenances attached to the land.
Real Property Rights Appraised
The subject properties are hypothetical unimproved lots and the fee simple estate is appraised.
Real Estate Appraised
It is an assumption of this appraisal that the subject’s hypothetical finished lot is graded and level, all utilities and services are stubbed to the site, is ready for building improvement, and defined as follows:
Area : One acre
Shape & Frontage : Shape is rectangular with t ypical frontage along one street.
Topography : Level, at street grade
Drainage : Adequate
Utilities & Services : The municipality provides wa ter, electrical, and sewer services. A private contractor provides garbage service.
Local utility companies provi de telephone and cable. All utilities are piped and wired onto the hypothetical lot.
Easements : Typical public utility easements along frontage presumed.
Soil Conditions : It is a general assumption of this appraisal that the hypothetical site is suitable fo r any legally permissible and physically possible use.
Environmental
Impairment Issues : It is a general assumption of this appraisal that there are no environmental issues that affect the market value of the hypothetical lots.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 13 Off-Site Improvements : Street is fully improved and maintained by the City; it is asphalt paved with streetlights, curbs, gutters, and sidewalks.
Street Access : Rates average in comparison to competing properties.
Exposure/Visibility : Rates average in comparison to competing properties for each hypothetical use.
Flood Hazard Status : Hypothetical lot is presumed to be within Zone X, which denotes areas of minimal flood ha zard, usually depicted on FIRMs as above the 500-year flood level.
Earthquake Fault Zone : The hypothetical lot is not loca ted in an Earthquake Fault Zone as designated under the Alquist-Priolo Earthquake
Fault Zoning Act.
Improvements : None
Personal Property Appraised
We did not appraise any personal property.
PREVIOUS APPRAISALS
The author previously appraised the subject(s) of this report for the City of Santa Clara on several occasions, most recently in an Appraisal Report transmitted March 1, 2024 with an effective date of opinion of December 31, 2023. The next most recen t appraisal of the subject was transmitted March 1, 2023 with an effective date of opini on of December 31, 2022. The intended use of all appraisals was the same: to assist the City in determining park impact fees.
REGION & CITY DESCRIPTION
The County of Santa Clara is located at the sout hern end of San Francisco Bay. It encompasses about 1,304 square miles of land with 15 incorporated cities and towns. According to the California Department of Finance (CDF) P opulation and Housing Estimates (E-1) last rele ased May 2024, on January 1, 2024, the county had a population of 1,903,198, a change of less than 1.0 percent from the January 2023 estimate. Ov er the past several years, Santa Clara County had been experiencing strong employment conditions. Prio r to the COVID-19 pandemic, unemployment was at historical lows and essentially reflected full employment conditions. According to statistics published by the State of California Employmen t Development Department (EDD), the Santa Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 14 Clara County unemployment rate was 3.8% in December 2024, based on a labor force of 1,029,400. This is an increase from the March 2020 unemployment rate of 3.4%, prior to COVID-
19. It is slightly lower compared with the one-year prior unemployment rate (December 2023) of
3.9%, based on a labor force of 1,046,800 jobs.
Santa Clara County, which makes up the bulk of Silicon Valley, is highly dependent on technology employment, including Adobe, Ap ple, Applied Materials, Cisc o, eBay, Flextronics, Google (Alphabet), HP, Intel, Intuitive Surgical, Lockheed Martin Space Systems, Microsoft, Netapp, Oracle, PayPal, and Tesla.
The City of Santa Clara covers about 18.4 square miles and is surrounded by San Jose on the north, east, and south, and is adjacent to Sunnyvale and Cupertino on the west. The City of Santa Clara’s population estimate was 132,048 as of January 1, 2024 (released May 2024), according to the CDF, about 0.3% lower than 12 months earlier. Employm ent conditions in the City of Santa Clara followed a similar trend as seen in Santa Cl ara County. Unemployment, according to the EDD, was reported at a rate of 3.3% in the city of Santa Clara as of December 2024, based on a labor force of 72,800. The unemployment rate has gene rally followed a downward trend since peaking in April 2020 at 9.5%. Still, the current rate is above the rate of 2.1% reported in December 2022.
An aerial of the City of Santa Clara (outlined in red) and surrounding areas is shown below:
The two largest employers in the City of Santa Clara are Intel and Applied Materials. Other high- tech companies, such as AMD, Nvidia, Oracle , Ericsson, Palo Alto Ne tworks, ServiceNow, and Agilent Technologies have office s in the city. Other large empl oyers include California’s Great
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 15 America Theme Park, Levi’s Stad ium, Santa Clara City Hall, Kaiser Foundation Health Plan, Mission College and Santa Clara University. The City of Santa Clara is the supplier for the City’s water and electric power, which it claims can save small industri es almost 50% on their utility costs.
Levi’s Stadium, the home of the San Franci sco 49ers, opened over th e summer of 2014 in the northern portion of the city, adjacent to Great America Theme Park and the existing 49ers practice facility. The Santa Clara Convention Center is also nearby and offers about 302,000 square feet of meeting space.
The opening of Levi’s Stadium spurred an increa se in demand for nearby properties. Currently there are fourteen projects under construction and another fourteen projects pending review. As of June 2024, the City of Santa Clara reported that “More than $3 billion in new development projects are on the horizon for Santa Clara in the next fe w years, with the likelihood of more to come.” There are several projects under construction throughout the city and several proposals in progress that are anticipated to add thousands of square feet of new retail, office and residential. The largest proposal is from Related California and is named Related Santa Clara (5155 Stars & Stripes Drive).
The project is a 240-acre mixed use development located across from the street from Levi’s Stadium. It would include 9.16 million gross SF of office, residential units, retail and entertainment facilities, hotel rooms, and surface and structured parking facilities. The first development phase was approved and was slated to open to the public in 2023 but was delayed by the pandemic.
Currently there is an application to amend the Master Community Plan (MCP) to accommodate a new alternative development scheme with a different mix of land uses.
A 190-room hotel on a 1.96 acre site is curren tly under construction at 2900 Lakeside Drive (Cambria Hotel project). Gateway Crossings (Hunter/Storm) at 1205 Coleman Avenue is the construction of a phased, mixed-use developmen t on 23.8 acres consisting of 1,565 residential units, a 152,000 square foot, 225 room, full-service hotel, 45,000 square feet of supporting retail, a 2.1-acre park, and structured parking facilities. Laguna Clara II Development Project (Equity) at 3131 Homestead Road is a residential developmen t involving the demolition of three two-story apartment buildings and one-half of a two-story apartment bu ilding (removing 42 dwelling units and retaining 222 dwelling units), two accesso ry buildings (central boiler room and a clubroom/leasing office) and four ca rport structures to construct a four-story apartment building with 225 units over a partially subgrade parking garage for a total of 447 dwelling units on the site.
1530-1540 Pomeroy Avenue is currently under constr uction to build six 3- story townhomes and two detached, 2-story single-family homes with a condominium map on two contiguous residential lots with a total lot area of 0.48 acres with 19 pa rking spaces. The project involves demolition of two existing one-story single-family homes. 3155 El Camino Real is currently under construction to build a 60-unit, three-story townhome development. 3625 Peterson Way is two new, eight-story Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 16 office buildings connected by bridges at two levels , a four-level parking structure with attached amenity building that includes a roof deck, surface parking, and site landscaping. The total building area is 695,435 square feet and the project includes demolition of existing structures. 88 Saratoga Avenue is a development of 200 affordable rental apartments and 8,625 square feet of commercial development on a 1.98-acre parcel. Other proposed residential and comme rcial projects are currently pending review. Additional development in the city includes both smaller residential and commercial developments and continued residential build-out of the Tasman East and Lawrence Station areas.
The City’s median household in come was estimated by the U.S. Census Bureau at $173,670 in 2023 (2019-2023) and the per capita income was about $84,533. The United States Census Quick Facts for 2019-2023 indicated the following demographics in Santa Clara:
Total Households 48,601
Owner Occupied Housing Unit Rate 41.2%
Average Household Size 2.57
Bachelor’s Degree or Higher 65.3%
In Civilian Labor Force 71.7%
The City is home to Santa Clar a University, Mission College, a public community college, and Golden State Baptist College. The City is primarily served by Santa Clara Unified School District, which includes 19 schools spanning transitional kindergarten through high school. The southwest corner of the City is served by Cupertino schools.
The City of Santa Clara and Santa Clara County benefit from a number of freeways, arterials, and expressways that provide access to most areas of the region, including thr ee interstate highways, I-280, I-880, and I-680 in addition to several federal and state highways, US-101, CA-85, CA-87, CA-17, and CA-237. Caltrain, Amtrak, and ACE rail transportation, light rail, and VTA bus services provide mass transit for the city, connecting Santa Clara to the greater Bay Area. Located adjacent the City’s eastern border is the Norman Y Mineta San Jose International Airport, with service to about 30 destinations.
There are three primary zip code s within the city, which are s hown on the following map as the color-coded areas within the black-outlined city limit boundaries. Note that the 95053 zip code applies to Santa Clara University, which is located within the Santa Clara city limits, but was not included as part of this appraisal.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 17
Source: zipmap.net
Conclusion
All locations within Santa Clara are proximate to nearby job centers, retail, housing, and linkages, contributing to the long-term demand for sites within the city.
MARKET CONDITIONS
The Winter 2025 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey, “taken after the November election, shows how developers and stakeholders of office, retail, industrial and multifamily spaces view the future and by implication, how they will invest.
It also reflects how the nation, and by extension, California, has been anticipating potential changes in federal policies from the new presidential administration.”
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 18 In the following narrative we present some st atistics and comments regarding the market conditions for each land use we are appraising. Land market conditions for each of these uses are not typically tracked by any firms that we are aware of; it has been my experience and historically as reported by market participants that the land market for these uses typically trend with the improved properties, oftentimes leading. We report on the sale, rental, and construction trends of the respective markets, in estimating the appropr iate market conditions adjustments used in our following analysis.
Regional Economic Conditions
Integra Realty Resources (IRR) reported in their 2025 Viewpoint, “Through a tumultuous 2023, with inflation the United States hadn’t experienced since the 1980’s, and up through September 2024 when the Federal Reserve made its first rate cut, the real estate players kept biting their nails and praying for the multiple rate cuts they had anticipated twelve months earlier. The September rate cut fell flat as the country grappled with a Presidential election battle. The 25- basis point cut in December came with a Fed warning that the target rate still considered inflation risks “somewhat elevated,” cautioning not to expect aggressive rate cuts in 2025.”
Commercial Market Conditions
Commercial properties typically include office and retail uses. We discovered that office properties are generally being built in the central business districts and in light industrial locations. Research and development (R&D) properties ha ve historically been a subcat egory of industrial. However, R&D can rival office space in terms of finishes and quality and we have elected to include a discussion of the R&D submarket as part of the commercial market. Many of the traditional retail corridors in this region, El Camino Real in part icular, have land use ordinances that allow for residential mixed-uses.
In this market, real estate brokerages track office and retail statistics by city or submarket; they are not broken out by zip code. Following we present th e relevant statistics pertaining to the Santa Clara market and provide comments from market participants regarding the perceived differences in each of the Santa Clara zip codes that the three hypothetical lots being appraised are located.
Office Market
The Silicon Valley office market from early 201 7 through 4Q-2024 was generally characterized by increasing vacancy rates, negative net absorption, and overall flat to slightly decreasing average asking rental rates. The next table displays data from the Colliers International’s 4Q-2024 Silicon Valley R&D Market Snapshot and its predecessor reports. The table includes statistics from the Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 19 Silicon Valley market, the subject’s submarket (Santa Clara), and the adjacent Sunnyvale submarket.
OFFICE STATISTICS
Sources: Colliers Market Reports
The data indicates that the office vacancy rate in Santa Clara generally increased slightly from Q1- 2024 through Q4-2024. The Silicon Valley market has been more stable overall with vacancy reported at 16.6% for Q4-2024, slightly down from the 16.8% rate in the third quarter 2024. The region’s availability represents approximately 20.6 million square feet of vacancy in 4Q-2024 for Silicon Valley.
Cushman & Wakefield reported key 2024 lease transactions in the C ity of Santa Clara included the San Francisco 49ers new lease of 52,050 square feet at 4655 Great America Parkway, KPMG’s new lease of 51,314 square feet at 2755 Augustine Drive, Verb Surgical’s lease renewal of 229,626 square feet at 5490 Great Amer ica Parkway, Siemens new lease of 61,634 square feet at 5455 Great America Parkway, Amazon’s new lease of 181,562 square feet at 2795 Augustine Drive, and Ericsson’s lease renewal of 53,548 square feet at 2755 Augustine Drive.
The average office asking rent in 4Q-2024 for the City of Santa Clara was $4.41/SF/Month on a Full-Service expense basis, whereby taxes, insurance, maintenance, utilities, and janitorial expenses are bundled into the base rent. This is slightly less than the $4.53/SF/Month asking rate from one year ago.
Cushman & Wakefield’s 4Q-2024 Silicon Valley Ma rketbeat Office Report shows that in the Silicon Valley area, which includes Santa Clara, office vacancy increased from 4Q-2023, but began stabilizing in 2024.
$8.00
$7.00
$6.00
i
~ $5.00
0 i
Ji $4.00
i
~ $3.00
~
<(
$2.00
$1.00
Average Asking Rate & Vacancy Rate Office Market
---------------------------------------------------~ 35.0%
30.0%
25.0%
I
-
20.0%
- --
15.0%
/
,- - ........_ Silicon Valley Vacancy Rate /
/ .......... ----...,,,,---____ _,,,,, ,- -~ \. ____ .,,,,.. I
10.0 %
- ---------- -=------ ----,,C-/ ___ '_,~~.......,.--- /_/_,_J ____ ----1 5.0 .. ---~~----~-, / Sunnyvale Vacancy Rate '- / - -
$0.00
\.0.1,0\.1 _,,0.1,0\.1 ...,0.1,0"'>% .,,0.1,0'-" ...,_o.,,o"' .,,0.1-0"'¼ ..,,0.1,01.0 _,,o.,_01,0 ...,0.1-01,'- .,,0.1.01." \.o.,_01,1. ,,,o.,_01,1- \.o.,_01."' ,,,o.,_01-"> ...,o.,_01,°' .,,0.,.01.°' Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 20
Cushman & Wakefield reported the following trends in the Silicon Valley area:
There are several office developments under constr uction in Silicon Valley and the City of Santa Clara. Notable developments in the City of Santa Clara were previously discussed.
Research and Development (R&D) Market
The next table displays data from Colliers In ternational’s 4Q-2024 Silicon Valley R&D Market Snapshot and its predecessor reports. The table includes statistics from the Silicon Valley market, the subject’s submarket (Santa Clara), and the adjacent Sunnyvale submarket.
Source: Colliers Market Reports
The next tables display data from CBRE’s 4Q-2024 Silicon Valley R&D Market:
SPACE DEMAND/ DELIVERIES
4,000
3,000
"'2,000
i 1.000
:, 0
f1.ooo
-2,000
-3,000
2020 2021
■ Net Absorption, SF
2022 2023 2024
■ Construction Completions, SF
OVERALL VACANCY & ASKING RENT
$5.80
$5.60
$5.40
$5.20
$5.00
$4.80
$4.60
$4.40
2020
25.0%
1u11111ti~:
2021 2022 2023 2024
- Asking Rent, $ PSF - vacancy Rate
R&D Average Asking Rate & Vacancy Rate
14.00% $4.50
$4.00
53.50 53.00
52.50 52.00
51.50 liiiiiaiil Santa aara Vacancy Rat, ~ Sunnyvalt Vacancy Rat, - Silicon ValltyVacancv Rat, - Santa aara Askin& Rat, --sunnyvat, Askin& Ratt - Silicon Vall,yAskin,e Rat, Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 21
Source: CBRE
As shown above, Silicon Valley’s R&D market experienced an overall increasing vacancy rate in 4Q-2024. Meanwhile, asking rents in Santa Clara have declined from $2.62/SF/month in 1Q-2024 to $2.50/SF/month in 4Q-2024 on a NNN expense ba sis. A NNN expense basis in this market means the landlord is only payi ng for management of the account and reserv es for replacement, while the tenant typically pays all other operating expenses.
Retail Market
Cushman & Wakefield is a brokerage firm that publishes quarterly reports for the retail market in the Silicon Valley. They reported in their Q4-2024 Marketbeat Silicon Valley Retail that: The unemployment rate in Silicon Valley increased to 4.2% at the close of 2024. Despite this rise, the region saw job growth. Silicon Valley also maintained its top position in median household income nationwide at approximately$165,200. The population also showed a steady growth rate at 0.6%.
Spending Patterns
General market conditions for the retail real estate segment can be indicated by taxable retail sales.
Typically, a market where taxabl e retail sales are incr easing would be supportive of additional retail development as existing retailers are willing to expand and new retailers are interested in entering the market. The converse is true when taxable retail sales are declining.
Average Asking Retail Rental Rates and Vacancy Rates
The Cushman & Wakefield Q4-2024 Marketbeat Silicon Valley Retail reported that: The Silicon Valley retail market demonstrated significant recovery in 2024, achieving its lowest vacancy rate in six years. At the close of 2024, the vacancy rate dropped to 4.8%, marking the first time it has fallen below 5.0% since late 2018.
(%)
15.0 14.0
13.0 12.0
11.0 10.0
9.0 - Total Vacancy% - Availability % Asking Rate
($/SF)
3.20 3.00 $2.88
2.80 2.60
2.40 2.20
8.0 2.00
~ rn m oo ~ rn m oo ~ ~ rn m oo ~ rn m oo ~
2022 2023 2023 2023 2024 2024 2024 2024 2024 2022 2023 2023 2023 2023 2024 2024 2024 2024 Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 22 The chart below displays the average asking rental rate and vacancy for the Santa Clara submarket, Sunnyvale/Cupertino submarket, Downtown San Jose submarket and Santa Clara County (Silicon Valley Total) taken from Cush man Wakefield and its predecesso r retail reports from 3Q-2017 onwards:
As indicated in the table above, the Santa Clara County retail market had an average asking rent of $3.00/SF/Mo NNN in 4Q-2024 which is a sli ght decrease compared to $3.01/SF/Mo NNN in 4Q-2023. Neighborhood and community centers account for most of the vacancies in the market.
In 4Q-2024 asking rents averaged $3.07/SF/Mo NNN in the subject’s Santa Clara submarket which is a decrease compared to $3.17/SF/Mo NNN in 1Q-2024. In 4Q-2024 the retail vacancy rate in Santa Clara was reported at 5.02%. As discussed previously, several new projects in the city of Santa Clara include ne w supporting retail development. Subject’s Santa Clara retail submarket inventory decreased slightly from 2,563,191sq.ft. in 1Q-2024 to 2,540,133sq.ft. in 4Q- 2024. Key lease transactions in 2024 include a new lease of 10,900sq.ft. at 901 Laurelwood Road and a new lease of 24,500sq.ft. at 1351 Coleman Avenue (Coleman Crossroads Shopping Center).
According to Marcus & Millichap’s Hospitality Report for Midyear 2024 - San Francisco Metro Area (which includes Santa Clara) , “San Francisco’s elongated recovery faces additional roadblocks. The metro’s hospitality sector is enduring a unique set of challenges amid record-high office vacancy, a slow return of international travelers from Asia, concerns over safety in the city, and recent tech industry headwinds. This combin ation has stunted the post-pandemic momentum that other locations across the country have benefited from recently.”
Industrial Market Conditions
We referenced industrial (manufacturing) and warehouse market data from brokerages Cushman & Wakefield and Colliers International; we also interviewed local market participants for this Retail Asking Rates and Vacancy
$49 .00 8 .0%
7.0%
$44 .00
z z z
►
;:,
~ $39 .00
,e,
.
i
.'l $34 .00
~
II
•
I ~
,,,,, i- _
,- i\ _,
- \ ' /
-\ -
,- -
"'
I/
~
,'J
~
6 .0%
5.0%
'#-
4 .0% [
~
3.0%
~
"
~
'
2.0%
$29 .00
7 1.0%
$24 .00 0 .0%
- Downtown SJ Vacancy - Silicon Vall!:y vacancy - Santa Clara vacancy - Sunnyvall!!:/ Cupl!rt ino Vacancy - Downtown SJ Askin& Rl!!:nt -Silicon Vlllll!y Askin& R@nt - Santa Clara Askin& Rl!!:nt - Sunnyvall!!:/ Cupl!!:rtinoAskinc R@nt Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 23 report. Cushman & Wakefield reported in its Marketbeat Silicon Valley Industrial Q4-2024, that “Despite continuing economic uncertainty, industrial vacancy is expected to remain low due in large part to persistent demand from e-commerce, last mile delivery, and a long-term growing need from the life science sector for advanced manufacturing and distribution.”
The next chart shows industrial rental rate and vacancy trends since 1Q-2018 based on data from Colliers International. The chart shows generally increasing vacancy rates and slightly decreasing asking rental rates in the City of Santa Clara in 2024.
Vacancy rates for manufacturing were generally increasing in Silicon Valley in 2024. A similar trend has played out in other submarkets with some fluctuation. Manufacturing rental rates in Santa Clara continue to decrease; the asking rental rate fell from $2.05/SF/month NNN in 4Q-2023 to $1.73/SF/month in 4Q-2024. Within Silicon Valley, the average asking rate for warehouse space was $1.51/SF/month in 4Q-2024 compared to last year’s rate of $1.66/SF/month.
Warehouse data collected from Colliers International’s Silicon Valley Research & Forecast Report Q4 2024 and its predecessor reports are displayed in the next chart:
Indust rial Average Asking Rate & Vacancy Rate
$4.00
$3 .50
$3.00
z z 7.0"
z
.,_ $2.50
"' i $2.00
6.0"
~
5.0" ~
1 ~
~ $1.50
~
4.0"
' r .
s1 .00
so.so
$0.00
iQl01S 30101.S 1,Q1019 3Ql01.9
_ S, nt11 Cl1r1 Ve,cancv _S, nJoseVec 1ncvR 1te - SunnyvaleV euncv - SlllconVellev Veuncv - Sant, Cl1r1 Askln1R1te - San Jose Askln1R1te - Sunnyv,leAskin1 Rate - SIiicon Vaiiey Askln1R1te Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 24
Warehouse vacancy rates in Silicon Valley have been fluctuating for several years with a increasing vacancy rate of 5.2% in the 4Q-2024 compared to 2.0% in Q4-2023. Warehouse rental rates in Santa Clara are reported to have de creased; the asking rental rate decreased from $1.32/SF/month in 4Q-2023 to $1.25/SF/month in 4Q-2024. Within Silicon Valley, the average asking rate for warehouse generally increased to $1.47/SF/month in 4Q-2024 compared to last year’s rate of $1.32/SF/month.
Data centers are one of the larg est industrial occupancy groups in Santa Clara, due mostly to Silicon Valley Power, which has lower rates than elsewhere in the Bay Area. The rise of remote working reinforced the need and demand for data centers. We discovered several expansion plans and construction occurring on existing sites. There have been several land sales in recent years in Santa Clara that are proposed for new data centers. Market participants report that data center operators will pay a premium for a larger site in Santa Clara. Two (data center) sites in Santa Clara were sold in 2021 (see Industrial Land Comparable s I-1 and I-2, these are the most recent data center land sales that we uncovered and confirmed). One additional transaction at 2315 Mission College Boulevard in Santa Clara (not included in the sales grid) is also a data center land sale that was reported to have been purchased by Amazon Data Services Inc. The 7.04-acre site reportedly sold for $51,817,500 or $168.97sq.ft. of land area. This sale could not be fully confirmed but was reported to have closed escrow on January 4, 2022.
CBRE’s U.S. Data Center Trends report for the 1H 2024 (September 2024) indicated the following market changes in Silicon Valley’s data center market:
Warehouse Average Asking Rate & Vacancy Rate
$1.70 14 .0%
z z $1.50 z 12.0%
...
.'C.
~ $1.30
u
10.0%
i i $1.10
~
~ $0.90
!',
8.0% t:"
6.0% ii ;;
4.0%
~
~ $0.70
< 2.0%
$0.50 0 .0%
- San ta Clara Vacancy - San Jose Vacancy - Silicon Vall ey Vacanc y --Santa Clara Askine Rate --San Jose Askin& Rate --Silicon Valley Askine Rate Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 25
Limited land and ability to deliver power has ca used some providers to explore options beyond Santa Clara in neighboring markets like San Jose and the East Bay Area. The city of Santa Clara is power constrained. Developers have been land-banking available sites while waiting for power delivery. Some of the current projects under construction in the city of Santa Clara include the following: A new data center on a 3.8-acre project site is under construction at 2905 Stender Way.
The project includes demolition of the existing si ngle-story buildings, and construction of a four- story, 246,660 square-foot data center building. A second new data center is under construction at 3060 Raymond Street. The construction will convert an existing 24,422 square foot, two-story industrial building to a 9-megawatt data center.
Residential Market Conditions
The National Association of Home Builders, re ported; “Fueled by solid demand, single-family construction moved higher in December despite several headwinds facing the industry, including high mortgage rates, elevated financing costs for builders and a lack of buildable lots.
Overall housing starts increased 15.8% in December to a seasonally adjusted annual rate of 1.50 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest rate since February 2024.” The California Association of Realtors (C.A.R.) published their December Home Sales and Price Report in mid-January 2025. The report notes that “Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 268,180 in December, according to information collected by C.A.R. from more than 90 local REALTOR associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.” Figure 1: Historical Market Information
MW
180
Vacancy
"'"
~ ~
- ~
~1.1..~~: .... :.)J.JJ -~. I~
~~~~~~~~~~##~~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
e Under Construction Preleased e New Deliveries e Vacancy Source: C8RE Re,ea,ch, C8RE O.t ■ <:enter Solution,, H1 2024.
Figure 2: Historica l Supply and Demand
MW
70 60
50 40
30 20
10 I
2016 2017 2018 2019 2020 2021
• Absorption • Vacancy
SOufc« CBRE R-arcl\ CBRE Dltl cen1er SOlutloN, Hl 2024.. 2022
Vacancy
""
2023 Hl 2024
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 26 “Despite a double-digit annual growth rate, sales of existing single-family homes remained below the pre-Covid norm of 400,000 units (seasonally adjusted and annualized). The strong year-over- year gain observed in December was largely due to low-base effects once again, as home sales in December 2023 dropped to their lowest level since late 2007. Nonetheless, the increases from the prior year and the prior month were encouraging, lifti ng sales of the entire year modestly above 2023’s level. Sales of existing single-family homes in 2024 totaled 269,030, a 4.3 percent improvement from the year prior, marking the first gain in three years.” “As projected, both sales and price activity were up modestly in 2024 as California wrapped up the year with a double-digit sales gain over last December,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While the housing market is expected to improve further in 2025, stickier-than-expected inflation, the ongoing insurance crisis, a nd policy changes under the new White House administration are some of the hurdles that could pres ent challenges for the market in the upcoming year.”
Regional Housing Market
The Standard & Poor/Case-Shiller Home Price Index measures the average change in value of residential real estate given a c onstant level of quality and reflect s single-family housing. It is sometimes referred to as a repeat sale index. The next chart indicates that the index for the subject’s San Francisco Metropolitan Area in creased slightly from 352.425 in Novemb er 2023 to 359.360 in November 2024, echoing the builder sentiment evident in the Housing Market Index.
Source: S&P Dow Jones Indices LLC
The State of California Department of Finance (DOF) compiles statistics on total housing units in both the cities and counties of California. Based on DOF statistics, Santa Clara County had a total FRED p,/;Y - S&P Core l ogic Case-Shiller CA-San Francisco Home Prtee Index <00
360
320
200
8 ~
240
~ 200
I 160
120
00 40
198a 1900 1992 1994 1996 1998 2000
Shaded areas Indicate U.S recessions.
2002 2004 2006 2003 2010 2012 2014 2016 2018 2020 2022 2024 Source: S&P Dow Jones Indices LLC fred stlouisfed org
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 27 housing supply of 705,646 units as of January 1, 2024. This represents an increase (0.6%) of housing units over the 701,539 units as of January 1, 2023.
In the City of Santa Clara, the DOF reported a total of 53,519 housing units as of January 2024.
This represents an increase (0.3%) of housi ng units from the 53,370 housing units as of January 2023.
Local Multifamily Market
According to Integra Realty Resources Viewpoint 2025 San Jose Multifamily Annual Report, “The Silicon Valley apartment market benefits from strong demographics and a prominent information technology industry presence, which continue to fu el demand for apartments, albeit at a more moderate pace over the past year. Market cond itions have improved from the downturn brought about by the pandemic. The region experienced population loss during that time as the opportunity to work remote prompted renters to relocate to more affordable markets. Vacancy increased and rental rate growth declined, particularly in the high-priced submarkets.” “Over the past year. the market has been fairly stable. Demand is lower than the peak in 2021, but still outpaced deliveries, maintaining low vacancy levels and low-to-mode rate rent growth. The construction pipeline remains strong, but developers are slowing new project starts amid st costly financing and tight lending requirements. New development is most active in Santa Clara, Sunnyvale and Mountain View/Los Altos.”
Integra Realty Resources Viewpoint 2025 San Jose Multifamily Annual Report summary is displayed in the following charts:
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 28
Source: Integra Realty Resources Viewpoint 2025 San Jose Multifamily Annual Report
According to a CoStar report on the local multifamily market, “In Santa Clara, strong demand has reduced the stabilized vacancy rate to under 4%.” “Santa Clara has the second highest number of deliveries in the metro area this year and the highest number of units under construction. Annual absorption of 330 units is also among the metro area's highest. Santa Clara has the second highest number of deliveries in the metro area this year and the highest number of units under construction. Annual absorption of 330 units is also among the metro area's highest.”
“Two communities that opened in the southern part of the submarket in 2023 demonstrate that renters have a good appetite for new apartments. Hanover Winchester, a 5 Star, 366-unit Market Rate Indicators (V/V)
Categories Class A Class B
Going In Cap Rate (%) .. A
Ask ing Rent I Unit) .. ...
Vacancy Rate (%) ..... ...
Going In Cap Rate Comparisons (%)
8.00%
6.00%
4.00%
2.00%
0.00%
~ ..,
"'
ill
Mi
Urban Class Suburban Urban Class Suburban
A Class A B Class B
■ S nJo ,CA
Asking Rents ($/Unit)
$4,000
$3,000
$2.000
$1,000
so
Class A
• Son Jo CA
Vacancy Rate (%)
80%
6.0%
4.0')(, ~ ...
2.0%
0.0')(,
Class A
■ San Jose, CA We
■ at10
Class B
■ on I
~ •
Closs B
R ion • 0~
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 29 community located near Santana Row in San Jose, opened in July and is around 84% leased, with average rents of $4,400/month. Nearby, Agrihood is a 366-unit community that comprises senior, affordable, and market-rate units. The property opened in August 2023 and quickly attracted tenants.
Additional deliveries will occur in the next two years as several projects that are currently under construction are completed. This period will test the strength of demand for apartments in Santa Clara and may result in higher vacancies in the short term.”
Local Single-Family Market
According to the City of Santa Clara General Pl an, an estimated 28,500 new jobs will be created and the population will grow by 32,135 people in the City between 2010 and 2035. The General Plan forecasts that 13,222 new housing units will be needed during that same period, based on an estimated household size of 2.5 people. The General Plan also states that household growth in the City has been much slower than the rest of Santa Clara County due to the lack of vacant residential land. Therefore, in order to meet future housing needs, construction of new housing will primarily occur through the redevelopment of existing sites.
Among the 53,519 housing units (January 2024) in the City of Santa Clara, as reported by the DOF, the single-family (attached and detached) market represents about 24,820 or about 46% of the total housing units in the City of Santa Clara.
CoreLogic is a national real estate, mortgage, c onsumer, and specialized business data provider.
DQ News has in the past tracked the annual me dian home price for all homes (single-family, condo, and townhouse), including new construction, in the City’s three ZIP code areas through 2021. As the DQ News reports ar e no longer available, all of 2022, 2023, and 2024 year end summary data was obtained from MLS Listings and does not include all new construction.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 30
The data above indicates that zip code 95051 c onsistently has the highest median price among Santa Clara’s zip codes. Zip code 95050 had the second highest medi an in most years. The $/SF indicator shows that 95051 has hi gher prices than 95050, which both have higher prices than 95054. The data indicates that median prices were increasing in 2018, stabilizing in 2019 and 2020, increasing in both 2021 and 2022, relatively stable to slightly increasing in 2023, and increasing in 2024. By the end of 2024, compared to the previous year, medi an prices had increased about
5.3% in 95050, increased about 14.2% in 95051 and increased about 6.9% in 95054. 2018 Year [nd Summar y Sale s
I Communitv Zill Sales %Chg lledianPrice %Chg Hieb Price S/Sqft %Chg Santa Clara 95050 380 -0.5% Sl,184,SOO 24.4% $2,609,000 $887 25.0% Santa Clara 95051 484 -16.6% Sl,358,000 17.0% $2,800,000 $934 14.7% Santa Clara 95054 185 -25.4% Sl,250,000 233% $2,400,000 $799 13.9% 2019 Year [nd Summar y Sale s
I Community Zin Sales %Che: lledian Price %Che: Hie:hPrice S/SoFt %Che:
Santa Clara 95050 332 -12.6% Sl,200,000 1.3% $2,350,000 $837 -S.6% Santa Clara 95051 461 -4.8% Sl,300,000 -43% $2,400,000 $860 -7.90Jc) Santa Clara 95054 162 -12.4% Sl,140,000 -8.8% $2,450,000 $748 -6.3% -020 Year [nd Summar y Sale s
I Communitv Zin Sales %Che: lledian Price %Che: Hie:hPrice S/SoFt %Che:
Santa Clara 95050 301 -93% Sl,200,000 0.()% $2,780,000 $834 -0.4% Santa Clara 95051 6 14 332% Sl,400,000 7.7% $2,200,000 $869 1.0% Santa Clara 95054 160 -12% Sl,175,000 3.1% $2,090,000 $774 3.5% 2021 Year [nd Summar y Sale s
I Community Zin Sales %Che: lledian Price %Che: Hieb Price S/SoFt %Che:
Santa Clara 95050 441 46.5% Sl,289,SOO 7.5% $3,218,500 $858 2.90/o Santa Clara 95051 855 39.3% Sl,490,000 6.4% $3,180,000 $9 12 5.0% Santa Clara 95054 242 51.3% Sl,255,000 6.8% $2,900,000 $794 2.6% 2022 Year [nd Summar y Sale s
I Community Zill Sales %Chg lledian Price %Chg Hieb Price S/SoFt %Chg Santa Clara 95050 258 -41.5% Sl,472,500 142% $3,650,000 Sl,024 19.4% Santa Clara 95051 483 -43.5% Sl,630,000 9.4% $3,500,000 Sl,118 22.6% Santa Clara 95054 138 -43.0% Sl,278,044 1.8% $3,330,000 $887 11.7% 2023 Year [nd Summar y Sale s
I Communitv Zill Sales %Chg Median Price %Chg Hieb Price S/Saft %Chg Santa Clara 95050 204 -20.90/o Sl,472,500 0.()% $3,600,000 Sl,007 -1.7% Santa Clara 95051 299 -38.1% Sl,600,000 -1.8% $3,030,000 Sl,102 -1.4% Santa Clara 95054 94 -3 1.90/o Sl,377,500 7.8% $3,180,000 $888 0.1% 2024 Year [nd Summar y Sale s
l Communitv Zill Sales %Chg lledian Price %Chg Hieb Price S/Sqft %Chg Santa Clara 95050 219 7.4% Sl,SS0,000 SJ% $4,300,000 Sl,084 7.6% Santa Clara 95051 376 25.8% Sl,827,SOO 142% $3,420,000 Sl,230 11.6% Santa Clara 95054 104 10.6% Sl,473,000 6.90/o $3,010,000 $952 7.2% Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 31
The $/SF indicators showed an overall increasin g trend from 2020 to 2024. The total number of sales indicator showed an overall decreasing rate from 2022 to 2023 and an overall increasing rate in 2024 in all three zip codes.
The following tables depict the median pric e trend by zip code over the 72 months ending December 2024 for single family homes and common interest developments (townhouse/condos) in the three zip codes of the City of Santa Clara using closed sale data obtained by MLSlistings.com:
As shown above, market data de rived from the local MLS shows th at prices were oscillating up and down over the 72 months ending December 2024. However, prices for single family homes $3,000,000
S2.500,000
$2,000,000
Sl.S00,000
SL000,000
SS00,000
so
$2.000,000
Sl.800 .000
Sl.600 ,000
S1,400,000
.. SL200,000
I Sl.000 ,000
~ .. $800,000
i
$600,000
$400,000
$200,000
so
Median Sales Price & Med ian Days to Sell
For Single-Family Units by Zip Code
--95050Median Price --95051 Median Price --95054 Median Price - - 95050Med ian Oavs to Sell - - 9S051 Median Days to Sell - - 950S4MedianOa vs to Sell Median Sales Price & Median Days to Sell
Townhouse/Condominum
--950S0MedianSP --95051 Median SP
- - 95050Med ian Days to Sell - - 95051 Median Days to Sell --95054 Median SP
- - 95054Median0aystoSe ll
175
155
135
115 =
s
95 !
75 ,:
:E
55 35
15 -5
120
100
80 s
! .
60 ,:
!
40 20
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 32 were generally relatively stable to slightly increasing in 2024. In addition, the median days to sell generally decreased in the last half of 2024.
We note that DQ News/CoreLogic data includes resales and new construction, while MLS typically does not include all new construction. This is because builders often do not use MLS to market their homes, using their in-house marketing efforts instead. The following tables show the annual and 2-year change for all housing types over the last three Decembers, according to the MLS:
The data in the above table supports the opinion that 95050 a nd 95054 generally rate inferior to 95051. The data also indicates that median selling prices are higher in all three zip codes compared to 2022 and 2023.
The next table using MLS statistics shows the monthly median change in selling prices in Santa Clara, adjacent Sunnyvale, and the larger Santa Clara County market since the start of 2020:
As the table above indicates, median selling prices increased sharply in the early part of 2020 through the spring of 2020. Prices were generally stable over remainder of 2020 in Santa Clara and Santa Clara County but declined in Sunnyvale. The median selling prices for each of these three areas generally increased th roughout 2021 and the first half of 2022. Prices were generally trending downwards in the last half of 2023, as a result of higher interest rates. In 2024, prices Median Sale s Price . . % Change per lonth % Change per lonth Housing Type Zip Code 2022 2023 2024 Last 12 Months Last 2 Years SFR, Condo, & 95050 Sl,4 2,500 Sl ,472,500 Sl,550 ,000 0.44% 0.22% 95051 Sl ,650,000 Sl ,600,000 Sl ,82 ,500 1.18% 0.45% Townhouse 95054 Sl ,278,044 Sl ,377,500 Sl,473,000 0.58% 0.64% Source: Local l\lLS
Median Sales Price For All Residential
- ---------------------------------ll/l/lll/lll//ll/Nllllll//l/ltl/lll///llllllllll////!l/il/l Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 33 were oscillating up and down due in part to the combination of higher interest rates, the 2024 elections, and the expected slower economic growth.
Conclusions
The Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey reports “For developers in the office sector, the rationalization of existing office space and a return-to-the-office are going to be key elements in deciding where and when to invest.” “The forecast is for at least three more years of declining rents and occupancy rates.”
Commercial (retail and office) properties exhibited mixed indications due to the pandemic in 2021.
Some retail is doing fine, but the hospitality/leisure/entertainment industries remain depressed.
Office demand appears in limbo as many employees may or may no t fully return to offices, particularly among tech companies. In 2024, the combination of higher in terest rates, the 2024 elections, and expected slower economic growth has impacted th e market. Based on discussions with market participants, general market conditions and the sales data we analyzed, we applied a market conditions rate of change to the commercial land sale comparables used of negative 0.75% per month from the start of 1Q-2020 through 4Q-2021. For the y ear 2022, and 2023 prices were more stable for commercial and did not warrant adjustment. Because commercial rental rates in the City of Santa Clara declined in 2024, we applied a negative 0.20% per month adjustment from the start of 1Q-2024 through 4Q-2024.
In prior years, industrial (and wa rehouse) market st atistics indicated that rental rates had been trending upwards, while vacancy rates generally st abilized near 5%. Mark et participants opined that selling prices were also in creasing, especially for large sites suitable for data centers. The increase in industrial value for this period is supported by an improved paired sale at 3600 Peterson Way in Santa Clara that sold in October 2016 for $30 million and again in June 2019 for $37 million, which indicates a straight-line increase of about 0.72% pe r month for this 75,800 square foot building on an approximate 5.42-acre site. 1623 S 10 th Street in San Jose sold for $3,000,000
in August 2018 and again for $3,801,000 in October 2020, indicating a straight -line increase of about 1.0% per month. Based on changing rents and prices, we concluded that competing industrial land prices were increasing at th e rate of about 0.75% per month fr om the date of sale of the comparables through Q4-2020, with no additional adjust ment in 2021, 2022 or 2023 warranted.
Industrial rental rates in the City of Santa Clara declined in 2024 and we applied a negative 1.00% per month adjustment from the start of 1Q-2024 through 4Q-2024.
Santa Clara (and the Bay Area in general) is an undersupplied housing market. Demand for housing is expected to continue in the long-term, with increased demand for higher density housing options, a result of the scarcity of developable land a nd the more affordable nature for prospective buyers/renters.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 34 Market data and market participants report that residential prices declined in the latter part of 2018 and were stable overall during 2019. In 2020, the re sidential market show ed different trends depending on property type. The residential mark et generally saw greater demand for detached residential over the course of 2020 and 2021 as buyers looked to have more indoor/outdoor space since they began spending a greater proportion of time at home. Mean while, condominiums and apartments experienced a slower market during 2021. Comparing just the December 2022 city of Santa Clara overall median residential sales price to the December 2021 overall median residential sales price, MLS Listings shows a decline of 4.83% year or a decr easing rate of change of about .40% per month. However, comparing just the December 2023 city of Santa Clara overall median residential sales price ($1,400,000) to the November 2022 overall median residential sales price ($1,400,000) indicates that no adjustment is necessary for 2023. Based on the market reports cited above, sales data analyzed, and market particip ant interviews, for the very low-density, low- density, and medium-density residential land sales used in the following analysis we applied an increasing rate of change of 0.25% per month fr om the start of 2020 through the fourth quarter 2020, an increasing rate of change of 1.00% per month from the start of 2021 through the fourth quarter 2021, and an decreasing rate of change of 0.40% per month from the start of 2022 through the fourth quarter 2022. We conc lude no market change is wa rranted during 2023 for these property types. Because the 2024 data indicates that median selling prices are higher in all three zip codes compared to 2023, a 0.50% per month adjustment from the start of 1Q-2024 through 4Q-2024 was used for these property types.
For the high-density land sales, median sale prices oscillated somewhat, and multifamily rents stagnated or declined during 2021. This property type includes both for sale and for rent proposed developments. Rent growth picked back up in the first half of 2022. However, CoStar’s Santa Clara Multi-Family report showed stagnating rent growth in th e second half of 2022. CoStar reported; “Challenging economic conditions over the past 12 m onths, including high inflation, rising interest rates, and layoff concerns, have dampened tenant deman d.” “While expensive in comparison to most other areas of the country, many renters in San Jose have few alternative options for housing. Median home prices have more than doubled over the past decade, and with mortgage rates at around 7%, the monthly cost of homeownership is substantially more expensive than renting. As the metro area is geographically constrained, commutes to areas with lower-priced homes are time consuming and arduous. As a result, many Silicon Valley workers are willing to pay high rental rates for lower grade multifamily units near suburban office campuses.” Over the longer term, rent growth in Santa Clara has av eraged 3.6% annually over the past decade. We conclude no market change is warrant ed during 2019, 2020 and 2021. A 3.6% annual market change is applied during 2022. We conclude no mark et change is warranted during 2023 for this property type. CoStar reported th at “In Santa Clara, strong dema nd has reduced the stabilized vacancy rate to under 4%.” “As of the first quarter, year-over-year rent growth is positive by 3.9%.
This is higher than the 2.9% San Jose average. In addition, the 2024 data indicates that median selling prices for residential properties are higher in all three zip codes compared to 2023.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 35 Based on these factors, a 0.50% per month adjustment from the start of 1Q-2024 through 4Q-2024 was used for this property type.
LAND USE ORDINANCES
Since we are analyzing hypotheti cal lots, we supposed that ea ch use would be based on its appropriate General Plan designation. The appropriate zoning category for each hypothetical use was not a critical factor as the General Plan is the long-term planning tool used by the City.
Furthermore, comparable land sale transactions typically sell based on their intended use, which is supported by the General Plan in almost all cases. The City’s Phase II Land Use map is in effect and is intended to guide land uses for the ye ars 2015-2025. Compared to Phase I, it expands the areas within the city where mixed-uses and higher-density residential is allowed. We supposed the following General Plan designations for each hypothetical use:
HIGHEST AND BEST USE
We studied the legally permissibl e, physically possible, financ ially feasible, and maximally productive uses of each hypothetical lot. We cons idered prevailing market conditions and recent development trends. As indicated in th e market conditions section, except for retail/hospitality/office, each product type is generally experiencing increasing or stable prices and stabilizing vacancy rates. These ar e indications that the highest and best use is to construct the legally permissible product for each respective pr operty type. However, for the commercial use, since many retail and office projects are on hold, construction would not likely be undertaken until the market improves, unless preleased or a build-t o-suit is procured. Therefore, the highest and best use for the hypothetical comm ercial use would be to hold for future development of a commercial building until the market improves, unless preleased or a build-to-suit. We concluded to the following components of property uses fo r the highest and best us e of the hypothetical lot based on the overall market and the instruction of the Client:
s e of Hypothetica] Lot Genera] PJan
Very Low Uensi rty Residentia l V,ery Low Density &esidenltla] Low Densi rty Residen tia] Low Den,sity J&esidentia]
~ilediu.m Uensirty Residentia ] Medmm Den&t)• ResidentiaJ High Densi rty Residen tia] High Den,sify J&esidootia]
Commer,cial J&egiornil Commeroia]
Industria] Liight rncm~triaJ
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 36
We applied a hypothetical condition that each of these uses was allowed on the hypothetical subject lot.
For this analysis and based on the market and the City’s General Plan, we concluded the most reasonable density to support the residential uses was about the midpoint or nearer the high end of the allowed density ranges (based on ever-increasing density proposals/approvals):
10 dwelling units per gross acre (DU/AC) for Very Low-Density Residential;
13 dwelling units per gross acre (DU/AC) for Low-Density Residential;
30 DU/AC for Medium-Density Residential; and
45 DU/AC for High-Density Residential.
For Very Low-Density Residential, which allows up to 10 DU/AC, we concluded that the most likely subdivision for a hypothetical one acre of land would support a subdivision at the high of this range, or 10 DU/AC. This is because the scarcity of land requires ever increasing densities to make projects financially feasible.
The likely commercial use would be an office build ing, but only if preleased or a build-to-suit.
The likely industrial use would be a data center, flex, light industr ial building or some type of interim contractor storage yard with minimal building improvements.
APPRAISAL PROCESS
The appraisal profession has generally relied upon three traditional approaches in estimating the market value of real property. These are the Income Capitalization Approach , the Sales Comparison Approach, and the Cost Approach. While all three approaches are always considered in a valuation assignment, all three are not always applied. The quantity and quality of available data and the applicability of each approach relative to the value being sought are important factors in reconciling to an opinion of value.
se of Hypothetic .al Lot
, ery Low Den sity Residential
Low Den sity Residential
·ledium Den sity Residential
High Den sitv Residential
Commercial
Indu strial
General Plan
Very Low Dens ity Residential (up to 10 D /AC)
Low Den sity Residential (S to 19 D /AC)
Medium Den sity Residential (20 to 36 D /AC)
High Density Residential (37 to 50 D /AC)
Regional Commercial
Light Indu strial
, ery Low Den sity Residenti al (10 D
Low Den sity Residenti al (13 D /AC)
·ledium Den sity Residential (30 D /AC)
High Den sity Residential (45 D /AC)
Hold for Development of a Commercial Building
Indu strial Building
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 37 Market value was estimated using the sales comparison approach. The income capitalization approach is seldom used when valuing land. The cost approach di d not offer substantial insight into this estimate of market value since ther e are no building improvements. Sellers, buyers, and our peers in this market rarely rely on the cost and income capitalization approaches when offering, purchasing, or valuing properties similar to the hypothetical subject lots. Therefore, we did not undertake a cost or income capitalization approach.
Following we estimated the value of a hypothetical one-acre lot under each use scenario described above, as if located within the 95050 zip code, since the most data was discovered in this zip code.
Next, we applied the weighted av erage of the highest and best land use component, based on the percentage of total land area associated with the different property types (as described above) that sold in the City of Santa Clara in the 12 months prior to the date of value (as reported by Old Republic Title Company). Lastly, we applied any necessary locational differences from the 95050 zip code conclusion to arrive at the appropriate average lot value in the 95051 and 95054 zip codes.
AVERAGE VALUE ESTIMATE IN 95050 ZIP CODE
Very Low-Density Land Value
The writers examined data that was discovered by: talking to brokers, agents, property owners, and market participants from within the subject market; reviewing DataTree.com, MLSlistings.com, and CoStar.com databases for recent sales; and searching Loopnet.com and broker databases for curre nt listings. We also reviewed de velopment reports provided by the planning departments of Santa Clara and other nearby cities.
As stated above, for the very low-density value component, we assumed a density of 10 dwelling units per acre, at the high end of the allowed range under the Very Low-Density General Plan designation, which allows up to 10 dwelling units per acre. We searched for competing sales and listings of properties throughout Santa Clara and adjacent competing cities which were intended for development with residential densities less than 25 dwelling units per acre and that closed escrow over the last three years, when possible. If there was a lack of comparable data we used sales that were older than 3 years, adjusting for changing market conditions.
We first analyze the subject hypothetical one- acre site located in zi p code 95050 since more appropriate sales from this zip code were di scovered. The sales we found most comparable are displayed on the following adjustment grid. The ad justment grid serves two purposes. First, it presents data, analysis, and conclusions about the subject and comparables in a way that facilitates comparison. Second, it presents the data in a format whereby the reader can follow the writers’ adjustment process.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 38 A parcel map for each comparable sale is displa yed in the Addenda. Selli ng prices were verified using our summary transcript of the public reco rd and conversations w ith selling and listing brokers/agents, sellers, and/or buyers when possible. A map showing the lo cation of these comparables is displayed in the Addenda.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 39
\"IRY LOW DI.Nsm· LAJi"lj"D COl\lPARABLI SALIS
U.IMI.NT OF ADJUSThU:."-ii SUBJICT COl\lPARABLI. \"l.D-1 CO~fPARABLI \"l.0-:? COMPARABLI YJ.1)..3 CO~fPARABLI \"l.D-4 LISTING \"l.D-S ADDRESS Ax erage Street 159 Brookside Aninue 3159 Butte Street 20860 McCtelhn Road Hanson Aven-ce 640 Lakeha ,·en Dri,·e - Santa Clara - Santa Clara Santa Clara C\.-pertino San Jose S=nynle . .u> • 303-2 -0 28 29 a . 359- 0-0 30 303-4 -0 S 0- 6- 0 SELLER Domingo 992 Revocable Trust \ allis 983 Family rust District lcCtelhn Ll.C RROCALLC G.j & 2 LLC B 'ER R.anjan Trust , et al ChengC& sai L Chen Alphamcd ellan LLC Bakhtiari Family Trust Listing I>OaTh~ IBER 459 s5· 2 2094 0 2552" 850 2"3263 05 Listing VERIFICA o.·soURCE Broker , Il.S, P,;blic Record Broker , iMLS, Pt.blic Record Broker , Il.S, Pl.blic Record Broker , ILS, Public R=d Broker , ILS, Public R=d ASSESS IENT BONDS one one rooe one one
Nm,,IBER OF . 0 2 2 6 4 6
SALE / LISTL\"G PRICT Sl.31S.OOO S1.600.000 S9.300.000 S1.800 .000 SS.800 .000 SALi: I Orn.RING PRICT PER SF S96.72 S110.9:? S168.11 S119.0S S133.lS TRANSACTIO NAL ADJUsnn:...-vrs
RE.AL PROPERTY RIGHTS CONVEYED - Fee Simple - Fee Simple Fee imple Fee Simple Fee Simple Fee Simple . .WJL"ST.~\ T 0.00% 0.00% 0.00% 0 .00% 0.00%
FIN. "CINGTERMS Con,·entional Alleuh All Cub All Cub Listing ADJL·snm, T 0.00% 0.00% 0.00% 0 .00% 0.00%
COND 0 SOFSAI.E Arm's-Length Ann's-Lengt provement Value Arm's-Length Ann's-Length Listing . .wJL·sr.lffi\ T 0.00% -9.38% 0.00% 0 .00% - 0.00%
E,"'CPD.TDITIJRES AFTER SALE Demolition Offset one • one • one . one • .wJL·snm, T 0.00% 0.00% 0.00% 0 .00% 0.00%
CLOSE OF ESCR.O\ September 2, 2020 larch 4, 2020 September , 2023 June 2 , 2022 Listing TIME OF SALE / 1ARK.ET CONDm O. r .. December 3 , 202 Ai;gi;st 2020 February 2020 ... April 2023 ... June 2022 .. December 202 MONTHS FRO 1 S ART Q-2020 THRO "GH 4Q-2 020 .. 4 ... 0 0 0 0 ADJT.iST.lffi\ T % PER .\!O,\TH 0 .25% .00% ... 2. "0% 0.00% 0.00% 0.00% :MO~FRO I S ART Q-202 THRO GH 4Q-202 ... 0 0 0
. .WJl/ST.lffi\ T % PER."t!O,\TH 1.00% .00% ... 2.00% 0.00% 0 .00% .. 0.00% MONTHS FRO I ST ART Q-2022 THRO GH 4Q-2022 2 .. i.- 0 i.- 6 0 . .WJl/SDffi\T % PER .",fOXTH -0.40% -4.80% -4.80% 0.00% -2.40% .- 0 .00% 'f.'IO.ITHS FRO IS ART Q -2023 THRO "GH 4Q-2 023 s 2 .. 0 .. ADJL"ST.lffi\ T % PER."t!O,\TH 0.00% 0.00% 0.()0% 0.00% 0.00% 0.00% ?-.'IO~ FRO 1 S ART Q -2024 THRO GH Q-2024 2 2 0
ADJL'ST.\!EJ\ T @ % PER .'\10,\TH 0.50% 6.00% 6.00% 6.00% 6.00% 0.00% ADJ PRICT PI.R S F AFTI.R TRANS ACTIO NAL .-\DJS S110.40 S116.45 Sl 78.10 S113.16 S119.83 LOCATIONAL ADJUSTMI.NTS
EXPOSURE / \ 1SIBILITY Average Similar Similar Similar Similar Similar ACCESS A ·erage Similar Simi.tar Similar Similar Similar .-U>PE.! ITE l'Fl.UENCES A ·erage Inferior ark & San Tomas Expy imilar Similar Similar Inferior - Ba "1lore Freeway ZIPCODE 95050 95050 95051 95 014 95 117 94 089
O\"I.RALL LOCATIONAL RATING Avera~e Inferior Similar Swenor Similar Inferior PHYSICAL ADJUSnlINTS
SITE SIZE (ACRES) 1.00 0 .3 1 0 .33 1.27 0.35 1.00
SITESIZE (S 43 ,560 3, 00 ,425 55,32 5, 20 3,560
UTILITY /fOPOGRA.PHY Rectanin:lar / l Street Front Rectanin:lar / l Street Front Inferior / SI Irre~lar / l Street Front Rectan~lar / l Street Front SI Irre~lar / l Street Front Sl Irre~lar / l Street Front USIJZONING ADJUSl'MI.NTS
zo. rG R -SL R ·6L R · 0 R -8 RO- Low Density Residential - -GENERAL .PLA!. Very Low Density Res Very Low Density Res Very Low Density Res Residential Low Density Residential • eighborhood RLO - Low Density Residential ALI.OWED DENSITY (dwelling =its per acre) t.-p to 1 0 t.-p to 0 i;p to 0 t.-p to 5 t.-p to 0 llp to !llUMBEROF 0 2.0 .0 6.0 .0 6.0
EST/. l-lTED I PROPOSED D /ACRE 10.0 6.-1 6.0 ./.7 11.5 6.0 ll'<"iE..."1.UED SE Residential SFD - AD Residential - AD 6 Residential Unit s Residential nit s 6 Residential nits ENTITLEME NT STATUS Has Zonine: & GP Had Zonine: and GP Had Zonine: and GP Had Zonine: and GP-With A"""onl s Had Zonine: and GP - No A.,.,,.ovah Had Zonine: and GP-With A.,.,,.ovals O\"IRALL PHYSIC AL & US£JZO~"ING RATING Inferior Similar St."t>erior Similar Inferior O\"IRALL RATINC-SUBJICT SHOULD SU.I. FOR ~lore Simibr Leas Si.mil:u· l\lore Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 40 Adjustment Process
Transactional adjustments were made sequentially for property rights conveyed, financing terms, conditions of sale/motivation of participants, expenditures incurred by the buyer after the sale, i.e. demolition costs, and market conditions since th e sale date. Market conditions adjustments are applied from the start of the first quarter 2020 through December 2024, based on trending sales data and our observations.
Comparable Sale VLD-1 is the sale of residential lot improved with an older home. The buyer of Comparable VLD-1 intends to demolish the home and construct a new two-story dwelling and add a 748 square foot detached additional dwelling un it (ADU). This comparable will not pay park impact fees since it already had a home improved on it and ADU’ s are exempt under the Santa Clara City Code (17.35.090).
Comparable Sale VLD-2 was the sale of an improved lot that could support two lots or a SFD and an ADU. The listing broker opined that the existi ng improvements needed a lot of work, but the buyer intended to move into the home, which dated from the 1940s. Based on the expected utilization of the improvements, we concluded that a downward adjustment was warranted for their contributory value. The amount of adjustment was estimated based on our observations, input from the listing broker, and a good fit for the data. A downward adjustment of $150,000 for this element of comparison was applied to the comparable on the Conditions of Sale line.
Comparable Sale VLD-3 is the sa le of a 1.27-acre parcel with an approved tentative map and a plan to build six single-family homes with ADU’s. This was an all-cash sale. The buyer is reported to be a developer. The older single-family hom e and garage are to be demolished by the buyer.
This Cupertino location is considered to be superior, based on higher median prices and generally superior schools.
Comparable Sale VLD-4 was the sale of a v acant lot that could support a reported 4-unit development. No pending approvals at the time of sale. The buyer was not sure if they will develop the lot for single family or multi-family use. The comparable had only one offer and it was an all cash-sale.
Comparable Listing VLD-5 is a current listing (as of December 31, 2024) of a newly approved project for six new single-family homes. The one-a cre site is located in Sunnyvale and backs to the Bayshore Freeway.
The seller of Comparable Sale VLD-1 was given some time to lease back following close of escrow; again, we concluded that the cost of demolition would be offset by the interim rental income.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 41 Locational adjustments were broken into elements that reflect the property’s identity to potential tenants or buyers (exposure, visibility), access (to freeways and amenities), and overall desirability of the location based on neighbor hood factors such as age and c ondition of nearby properties, proximity to enhancing or detrimental factors, or an identifiable valuation element relating to address (locational appeal, zip code). As will be discussed in the following material, residential land values in the 95050 zip code rated superior to the 95054 zip code but inferior to the 95051 zip code; thus, the 95054 compar able located in 95054 is adjust ed upward and the comparable located in 95051 is adjusted downward.
Locational adjustments were warranted for the elements of comparison as summarized on the grid.
Although Comparable VLD-1 backs to a public park, beyond the park is San Tomas Expressway, which is within about 200 feet of this compar able and is not separated by a sound wall, rating inferior to the subject; an overall upward adjustment is concluded for this element of comparison.
Physical and Use/Zoning adjustments were broken into elements that reflect property size, utility/topography, allowed land uses and density, intended use/de velopment density, affordable housing component, and entitlement status.
Comparable VLD-2 is located at the elbow of two streets and thus has an irregular pie-slice shape; an upward adjustment is concluded for inferior utility. For this analysis, upward adjustments were warranted for the lower densities of Compar ables VLD-1, VLD-2, VL D-3, and VLD-5 rating inferior for this element of comparison.
As discussed in the preceding ma terial, market conditions adjustme nts are applied from the start of the first quarter 2020 through the end of the fourth quarter 2024.
Conclusion
Following adjustment for the elements summarized on the grid, we concluded to the overall ratings displayed at the bottom of the sales grid. Bracketed by the comparable ratings, giving most weight to the sale comparables located in Santa Clara, we conclude d to the following unit value of unentitled very low-density residential land in the 95050 zip code:
Unit $/SF x Land Area (SF) = Indicated Value
$120 x 43,560 = $5,227,200
Estimated Market Value of a 1-Acre
Very Low-Density Residential Lot in 95050 Zip Code: $5,227,200
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 42 Low Density Land Value
Similar to the preceding very low-density land search, we searched data sources for low and medium-high density residential land transactio ns and examined data that was discovered by talking to brokers, agents, property owners, and market participants from within the subject market. We also reviewed development reports provided by the planning departments of Santa Clara and other nearby cities.
As stated above, for the low-dens ity value component, th e City’s land use classification cites a low-density range of 8-19 dwelling units/acre ( DU/Acre), which is greater than the maximum 10 DU/Acre allowed in the very low-density clas sification. We assumed a density of 13 DU/Acre, about the mid-point of the density range. The sales we found most comparable are displayed on the next grid. A map showing the location of th ese comparables is displayed in the Addenda. A parcel map for each comparable sale is also displayed in the Addenda. Selling prices were verified using our summary transcript of the public reco rd and conversations w ith selling and listing brokers/agents, sellers, and buyers.
A parcel map for each comparable sale is displa yed in the Addenda. Selli ng prices were verified using our summary transcript of the public reco rd and conversations w ith selling and listing brokers/agents, sellers, and/or buyers when possible. A map showing the lo cation of these comparables is displayed in the Addenda.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 43
LOW DI.NSITV LAND co:MPARABLE SALES
ELL\fLm' OF ADJUSTMEJ.'\j"'f SUBJECT COl\'iPAR,A.BI.I LD-1 COMP,-\RA.BLE LD-2 COMPARABLE LD-3 COMPARABLE L~ COMPARABLI LD-S COMPA.R.-\BLE LD-6 LISTING LD-7 ADDRESS A,·i!nge Street 2303 Gi2<1i!!2 Street Fillmore Street 4249 Cheeney Street H.nson Avenue s S. Wolfe Ro2d 4503 Cheeney Street 640 I..2keh.a.ven Dri,·e - S.int2 Clara - &inta.C1ara &int2 Cht-2 S2nt2Cbn &in J03e Sunnyv2le S2<1ta.Cbn Sunnyv2le APN 04-06-03 04- 0-0 04- 2-025 & 026 303-4 -0 S 2 -05-009 -09-034 l 0- 6-040 !SELLER J03e Trinida.d ·uno l\bnisha K2ma1 Sitlani larlene luruon Rebello RROCALLC Ya.nuok.a. Espennca Gsj & 2 LLC BUYER Gi2!ler21 ST Estate LLC \"m.s Inveitment ~O"-P LLC faruti Build.en LLC Bakhtiari F.imily Tn;st s S. Wolfe Road, L.P. Cheeney Homei LLC Luting DOCUMENT Nu1' IBER 25354 06 2549094 2529 69 25326305 256629 2 25504928 Listing VERJFICATIO. SO CE Broker, MLS, Pcl>lic Record Broker, '!LS, Public Record Broker, Subscription Svcs, Pcl>lic Recore Broker, '1LS, Public Record Broker, Scl»cription Svcs, Public Recore Broker, !LS, Public Record Broker, . '!LS, Pcl>lic Record ASSESSMENT BO IDS None ·one None .1. ·one , 'one "one one lmJl\ ,mER OF UNITS 13 4 4 s 4 s 6 6
SALI I LISTll\ "G PRICI S2.443.000 S1.190.000 S2,650,S00 S1.800.000 S-1,500.000 52.100.000 SS,800.000 SALI I OITERING PRICE PI.R Sf S145.42 S126.93 S119.31 S119.0S SIS0.75 S109.72 S133.lS
TRANSACTIONAL ADJUSTMINTS
REAL PROPERTI.' RIGHTS CONVEYED Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple .W JUST.lfE.\ T 0.00% 0.00% 0.00% 0.00% 0.00% 0.()0% 0.00% FINANC 'GTE.RMS ConYentional AUCa3h A11Ca3h All Ca3h ConYention21 ConYention21 Li.stin; .WJL"ST.l!L\T 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% COND 0. 'S OF SALE. Arm's-Length Arm's-Len;th Arm's-Length Arm's-Lenr;th Arm's-Length Arm's-Length Li,tin.g .W JUSDfL\T 0.00% 0.00% 0.00% OJ)0% 0.00% 0.00% - 0.00% EXPENDITURES AFTER SALE. Demolition Offset ron.e one None Demolition Offset Demolition Offset one .W JUST.lfE,\ T 0.00% 0.00% 0.00% 0.()0% 0.00% 0.()0% 0.00% CLOSE. OF ESCRO, Augrut S, 2022 June 2 , 2023 lay 5, 022 June 2 , 2022 July 2, 024 July 24, 2023 ListinJ TIME. OF SALE. / '1ARKET CONDmo::-i .. December 31, 2024 -
June 2022
,.
June 2023 .. April 2022
,.
June 2022
,.
l\ larch 2024 .. June 2023
,.
December 2024
I MONTHS FRO. l START Q-2022 THROUGH 4Q-2022 .. 6
i,-
0 .. s
I,
6 i,-
0 .. 0
I,
0 .WJL"ST.\fE,\ T @ % PER .\10,\ TH -0.40% -2.40% OJ)0% -3.20% -2.40% ,. 0.00% ,. 0.()0%" 0.00% ~ '10NTHS FRQJ\,1 START Ql -2023 THROUGH 4Q-2023 12 6 2 12 i,-
0 .. 6
i,
0 ,.
ADJUSDfE.\T @ % PER.\fO ,\TH 0.00% 0.00% 0.00% 0.00% 0.()0% 0.00% 0.00% 0.00% I MONTHS FRO!\! START Q -2024 THROUGH 4Q-2024 12 2 2 2 0 .. 2 0 .W JUST.\fE,\T @ % PER .\1O,\ TH 0.50% 6.00% 6.00% 6.00% 6.00% 0.00% 6.00% 0.00% ADJ PRJCI PER SF AFTIR TR.-\NS.-\CTlO NAL ADJS S150.4-4 S134.SS S12-2.42 S123.16 SIS0.75 S116.30 S119.83 LOCATIONAL ADJUSTMI!'li'TS
EXPOSURE I \1SIB!LITY A,·ttag~ Similar Similar Similar Similar Similar Similar Similar ACCESS AY~ag~ Similar Similar Similar Similar Similar Similar Similar APPEAl.iSITE. INFLUENCES AYa-age Inferior Inferior Inferior Similar Similar Inferior Inferior - B.ayshore Free-..-:ay ZIPCODE 95050 95054 95054 95054 95117 94086 95054 94089 OHRALL LOCA TIONAL RATING A,·era,:e Inferior Inferior Inferior Similar Similar Inferior Inferior PHYSIC,-\!. ADJUSTMENTS
SITE SIZE (ACRES) 1.00 0.386 0.22 0.51 0.35 0.69 0.44 1.00 SITE SIZE (SF) 43,560 6,800 9,3 5 22,2 6 15,120 29,850 19,140 43,560 ll.i""TILITY/IOPOGRAPHY Recl2<1!!'.Ul.ar / 1 Street Front Rect2n!!'.Ular / l Street Front ltn!!'.Ular R.ectan!!'.Ul.ar Comer / 2 Front a,:, Rect2nrular I l Street Front SI Irrerolar I l Street Front R.ectanrolar / 2 Street Fronta,:ei Redan!!'.UW' Comer / 2 Fronta,:a SI Irrerolar / l Street Front USEJZO.NINC AD·JUSThlENTS
ZO:-uNG Rl -6L Rl -61.. Rl -6L Rl -8 RO- Low Den.sity Residential R.2- Low Density R~tidential RO- Low Density Residential GE.NERAI. PLAl Low Density Rei L-0w Density Rei V tty L-0w Density Rei V tty Low Density Rei Residenti21. eighborhood R.LO - L-0w Density Residential L-0.-.· Density Residential R.LO - Lo.-.· Density Re:;identw upto Lo"· Den,ity, to 14 Lo,.--
ALLOWED DENSITY (dwellin; units per acre) 8 to 9 Sto 9 1,-p to 0 1,-p to 0 ""'P to 8 'le<!iwn Density Sto 9 upto Nll.IBER OF UNITS 13 6 4.0 s.o 4.0 8.0 6.0 6.0
ESTI.\!-!TED I PROPOSED D /ACRE 13 15.6 JS.6 15. 11.5 11. 13. 6.0 INTENDED USE Residential 4 Residential Units 4 Residential Units Using SB 9 S or 9 units 4 Residential Units Using SB 9 8 R.a,identi21 Units 6 Residentw Units 6 Resic!'.entw Units ENTITL EMENT STATUS H.as Zoning & GP H.as Zoning & GP Had Zonin; 2<1d GP · o Approv21s Had Zoning 2<1d GP · • o Appronls Had Zoning 2<1d GP · o Appro,·21s l\fay 6, 2024 Applic2tion to Change Zoning to Low-Medium Density
Reiidential 2<1c! Chang;, GP to Lo,.-.
l\lec!iwn Density Reiidentw - No Had Zonin,: 2<1d GP Had Zonin,: 2<1d GP-With Ann<ov2ls OYIR-\LL PHYSICAL & USI/ ZO!'li"'INC R-\TING s,.'1>!>fior Inferior Inferior Similar s ... '<>Mior Inferior Inferior OHR-\LL R-\TING-SUBJICT SHOULD SI.LL FOR Less Sli,.btl ~· More Sli,.bth- More Simila r Leu More More Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 44 Adjustment Process
Transactional adjustments were made sequentially for property rights conveyed, financing terms, conditions of sale/motivation of participants, expenditures incurred by the buyer after the sale, i.e. demolition costs, and market conditions since th e sale date. Market conditions adjustments are applied from the start of the first quarter 2022 through December 2024, based on trending sales data and our observations.
Comparable Sale LD-1 is the sale of single-family lot improved with an older home. The buyer of Comparable LD-1 is an investor and intends to demolish the existing home and improvements.
The lot was reported to have been approved for si x single family units in the past, however that transaction never consummated. Although the lot wa s most recently marketed with the potential of being subdivided to provide four multiple guara nteed units without city approval, we depicted 6 units on the sales grid due to its reported pre- approval. The property was reported to have been owner occupied at the time of sale. This sale has a R1-6L zoning and a low density residential general plan that allows 8 to 19 dwelling units per gross acre equal to subject’s low density residential general plan.
Comparable Sale LD-2 was the sale of a vacant co rner parcel. This property was originally listed for $1,498,900 in July 2022. The listing price was reduced in September 2022 to $1,398,900. The price was again reduced in October 2022 to $1,298,900. The lot was marketed as having the potential for a duplex or fourplex.
Comparable Sale LD-3 was the sale of two vacan t lots that could support a reported 8 or 9 unit development. The seller had pr eviously applied for a tentative map to allow for an 8-unit townhouse development. The proposed development was not approved, and the lots currently do not have any pending approvals. Th e lots were not listed on the MLS but were reported to have been actively marketed for six months. The property was listed at $2,700,000 and was reported to have had four offers. This was an all cash-sale.
Comparable Sale LD-4 was the sale of a vacant lot that could support a reported 4-unit development. No pending approvals at the time of sale. The buyer was not sure if they will develop the lot for single family or multi-family use. The comparable had only one offer and it was an all cash-sale.
Comparable Sale LD-5 is the sale of a 0.688-acre lot improved with an older home. S. Wolfe Road is a busy four lane road. The buyer plans to deve lop the property with eight new single-family homes. This comparable reportedly had five offers.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 45 Comparable Sale LD-6 is the sale of single-family lot improved with an older home. This lot is on the corner of Cheeney Street and 3rd Street. After purchase, the buyer obtained approvals to build six new single family detached homes.
Comparable Listing LD-7 is a current listing (as of December 31, 2024) of a newly approved project for six new single-family homes. The one-a cre site is located in Sunnyvale and backs to the Bayshore Freeway.
Comparable Sale LD-1 was reported to have been owner occupied at the time of sale and could be rented. The cost of demolition was offset by the rents that could potentially be received.
Locational adjustments were broken into elements that reflect the property’s identity to potential tenants or buyers (exposure, visibility), access (to freeways and amenities), and overall desirability of the location based on neighbor hood factors such as age and c ondition of nearby properties, proximity to enhancing or detrimental factors, or an identifiable valuation element relating to address (locational appeal, zip code). As will be discussed in the following material, residential land values in the 95050 zip code rated superior to the 95054 zip code but inferior to the 95051 zip code; thus, the 95054 compar able located in 95054 is adjust ed upward and the comparable located in 95051 is adjusted dow nward. Locational adjustments were warranted for the elements of comparison as summarized on the grid.
Physical and Use/Zoning adjustments were broken into elements that reflect property size, utility/topography, allowed land uses and density, intended use/de velopment density, affordable housing component, and entitlement status.
As discussed in the preceding ma terial, market conditions adjustme nts are applied from the start of the first quarter 2022 through the end of the fourth quarter 2024.
In the market, the primary valu e difference between very low, low-density, and medium density land relates to density. The density adjustment was plotted based on the relationship between price per SF and density, as evidenced by the comparables. In the chart below, we plotted the preceding very-low, low, and medium-high density residential land transactions.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 46
As shown in the chart above, the price per square foot of land increases with increasing density.
This is congruent with our observations in the ma rket that as density increases, price per SF of land typically increases. The difference in pricing for changing densities is clear when comparing the lowest to the higher densities. Similarly, the price/SF difference is less when compared to the median or higher densities. We concluded that there is a difference in value/SF between the preceding very low density and the low-density residential which has a higher density. The trendline in the chart above indi cates that the appropriate unit value based on a density of 13 dwelling units per acre would be about $125 per square foot. Historically, there has been a 5% to 10% price difference between the preceding very low density and low-density residential. Based on the comparable data, with a density of 13 dwelling units per acre for the low-density residential land use, we concluded to $125/SF.
Conclusion
We concluded to the following Low-Density residential value in the 95050 zip code for 1-acre of land:
Unit $/SF x Land Area (SF) = Indicated Value
$125 x 43,560 = $5,445,000
Estimated Market Value of a 1-Acre
Low-Density Residential Lot in 95050 Zip Code: $5,445,000
"" "" "" "'' SUS
s110
s1,s
"~
S15S
"'' S14S
'"' Sl!S
"" S12S
S120
SUS
suo
""
'" "' ""
2024 low Densit y Comparable Price per Square Foot vs. Proposed DU/Ac ProposedDwelfing Units per Acre
.
. .
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 47
:\f[l) IUM DI.Nsm· L.\ND CO:\fPARABLI S.\L IS
ILDIINT OF ADJUSThIINT SUBJICT COMPARABLr :\ID-1 CO~fPARABLI ~ID-? COMPARABLI :\ID-3 COMPARABLI :\ID-4 ADDRESS Axen:ge Street 4 79 Boynton Aven-ce 320 Virginia .i~xe 289 1 Homeltead Road 30r-3155 El Camino Real ,- Santa.Clara - San Jose Campbell Sant a Clara "nincorp<)f'2t Santa Clara AP 303 8-020 4 -0 -033 90-39-080 220-32-05 & 058
SELLER. Morales \"op Ref \"i.rginia LLC Ap,>.x Fund LLC Bowers Plaza GP B ~ Dreamho1.1Se5 Investment LLC KB Home South Ba · Inc Xfortune Homestead Estate LI.C Toll'. est Co21t LLC DOC . IENT. • !BER. 25 02 2" 4034 In E.sc:row 25436 0
VERIFICA o.·soUR.CE Broker, Subscription S,·c:s, Pcl>lic: Record Broker, Scl>3c:ript1on S,·cs, Pl;blic: Record Broker, Subscription S,·cs, Pl;blic: Record Broker, Subscription S,·cs, Pl;blic: Record ASSESS. IENT BONDS ·one • one • one • one
INID.IBER. OF 30 8 40 2 60
SALI / LISTIXG PRI CI Sl. 999.998 Sl 9.385.000 S3.500.000 $16.500.000 SALr / OFFIRINC PRICI PIR SF Sl? S.00 SH3.9 S S167.06 Sl SS.2-4 TRANSACTIONAL ADJUSThfI.NTS
REAL PROPER.TY RIGHTS CONVEYED Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple ADJll STJ.fEJ\ T 0.()0% 0.00% 0.00% 0.00%
IFIN. r rGTER MS Con,·entional Con,·entional Con,·entional Com·entional ADJll ST.\J'EJ\ T 0.00% 0.00% 0.00% 0.00%
COND 0.1 SOFSALE Ann's-Length Ann's-length Ann's-Length Ann's-Length ADJllST.\fl!\T 0.00% 0.00% 0.00% 0.00%
EXPENDITURES AFTER. S.Al.E Demolition Offset one Demolition Offset Demolition Offset ADJll STJJ'EJ\ T 0.()0% 0.00% 0.00% 0.00%
CLOSE OF ESCRO'. r Oc:tobes- 0, 2024
~
October 8, 2024
,.
January 23, 2025
,.
February 4, 2023
I 'ID.IE OF SALE / WU<.ET COND ON " December 3 , 2024 - ., September 0, 202 ,.
ot Disclosed
,.
Decembes-202
,.
"nkno\\n
i mNTHS FR.O I ART Q -2023 THR.OUGH Q-2023 " 0 " 0
,.
0 ,.
8 " ADJU • !ENT @.,% PER. .10. 0.()0% 0.00% " 0.00% " 0.00% " 0.00% I MO. :THS FR.O. I START Q -202 THR.OUGH Q- 024 3 " ,.
0 ,.
2 .-WJ7.lST.\f'E,\T@ % PER .lIOX TH 0.50% 1.50% 1.00% 0.00% 6.00% ADJ PRICI PIR SF AfTIR TRA ... 'NSACTIO~.\L ADJS S126.87 5216.09 S167.06 S164.56 LOCATIONAL ADJUSThIINTS
EXPOSURE / \ 1SIBll. ITY •1~x erage Similar Similar Similar Similar ACCESS .~\rer;age Similar Similar Similar Similar
APPE, ITE iFLUENCES Aver.1ge Inferior Sl>-penor ferior Inferior ZIP CODE 95050 95 117 95008 95051 95051
OHR.\LL LOCATIONAL R.-\TIN,C .~,·e:ra~e Inferior Swerior Inferior Inferior PHYSIC.\!. ADJUSThlI.NTS
SITE SIZE (ACRES) 1.00 0.36 7 2.080 0.48 1 2.440
SITE IZE (S 3,560 6,000 90,605 20,950 06,286
UTILITY /fOPOGR.APffi: RectanrulM / l Street Front Rec:t anl!;U1a.r / l Street Front SI Irree;ular / l Street Front SI lrree;ular Narrow Lot / l Street Front :Mostly Rec:tane;ular Comern Frontage1 I USI/ZONINC ADJUSTML'\'TS
ZONIKG Mixed Use Neighborhood :Medium Density Res 11edium Density ReJ Mi.."'ted Use Community Commercial GE!'-l"E.R.AL PL. ledium Densit · ReJ foted Use !! "eighborhood • 'ledium Density Res ledimn Density Rel Community futed se .Al.LOWED DEKS • (dwell.ing units per acre) 0 to 36 30 8 to 5 0 to 36 20 to 36 INID.IBER. OF r 30 8 40 2 60
ESTJJ£.ffED I PROPOSED D /ACRE 30.0 _J_S JS) __ _5_0 A o I tN 1 t:.NUED SE Resident ia1 Residential R.esident ial, R.esiden t ial Residential E!'-l"TITI.E11ENT STATUS Has Zonin~ & GP Has Zonin~ & GP Has Zonin!; & GP Has Zonin~ & GP Has Zonin~ & GP. Entitled OYIRALL PHY SICAL & USI./ZONINC RATING Inferior Sl>"1>i!rior Similar S1..-=nor OYI R.-\LL R.UINC...SUBJICT SHOUI.D SILL FOR ~lore Les.a Simil:i r Les.a
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 48
Medium Density Land Value
Similar to the preceding very low-density and low- density land search, we searched data sources for low, medium, and high-density residential land transactions and examined data that was discovered by talking to brokers, agents, property owners, and market participants from within the subject market. We also reviewed development reports provided by the planning departments of Santa Clara and other nearby cities.
As stated above, for the medium-density value component, a density of 30 dwelling units per acre is assumed, slightly above the midpoint of the allowed range under the Medium Density General Plan designation, which allows 20-36 dwelling units per acre. In the market, the primary difference between the medium-density land value and high-d ensity land value relates to density. The sales we found most comparable are displayed on the ne xt grid. A map showing the location of these comparables is displayed in the Addenda. A parcel map for each comparable sale is also displayed in the Addenda. Selling prices were verified using our summary transcript of the public record and conversations with selling and listing brokers/agents, sellers, and buyers.
A parcel map for each comparable sale is displa yed in the Addenda. Selli ng prices were verified using our summary transcript of the public reco rd and conversations w ith selling and listing brokers/agents, sellers, and/or buyers when possible. A map showing the lo cation of these comparables is displayed in the Addenda.
Adjustment Process
Transactional adjustments were made sequentially for property rights conveyed, financing terms, conditions of sale/motivation of participants, expenditures incurred by the buyer after the sale, i.e. demolition costs, and market conditions since th e sale date. Market conditions adjustments are applied from the start of the first quarter 2023 through December 2024, based on trending sales data and our observations.
Comparable Sale MD-1 is the sale of residential lot improved with an older home. The lot is zoned Mixed Use Neighborhood. This 16,000s q.ft. lot was listed as resi dential development land. The buyer plans to develop the property with eight new three-story townhomes. The property was listed at $1,950,000 and sold for $1,999,998.
Comparable Sale MD-2 is the sale of a 2.08-acre vacant site. The buyer plans to build 40 townhome style condominium units w ith a central common open space area . The site is in Campbell and backs to San Tomas Aquino Creek and is close to San Tomas Expressway.
Comparable Sale MD-3 is the sale of a residential site improved with an older single-family home.
The proposed plans include the construction of twelve new f our-story townhouses and the
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 49
demolition of the existing single-family house. The site is narrow and has 51.54 feet of frontage.
The property was originally listed on the MLS for $3,888,888 before being canceled in April of 2024. The property later sold off market with the original listing broker.
Comparable Sale MD-4 is the sale of the Bowe rs Plaza site, a former neighborhood retail center.
The property sold entitled for redevelopment with a 60-unit, three-story townhome development.
The buyers will demolish the existing structures.
As stated above, the primary value difference between very low, low-density, and medium density land relates to density. The density adjustment was plotted based on the relationship between price per SF and density, as evidenced by the comparables. In the chart below, we plotted the preceding very-low, low, and medium-high density residential land transactions. We have also included high- density comparables that were less than 90 DU/acre.
The difference in pricing for changing densities is clear when comparing the lowest to the higher densities. The chart above indicates that at a density of 30 dwe lling units per acre, the indicated price per square foot is about $150. Historically, there has been a 10% to 20% difference between the medium density residential and high density residential. Based on the comparable data, with a density of 30 DU/acre for the medium-density land use, a unit value of $150/SF is concluded.
Conclusion
We concluded to the following medium-density value in the 95050-zip code for 1-acre of land:
Unit $/SF X Land Area (SF) = Indicated Value
$150 x 43,560 = $6,534,000
Estimated Market Value of a 1-Acre
Medium -Density Residential Lot in 95050 Zip Code: $6,534,000 2024 Medium Density Comparable Price per Square Foot vs. Proposed DU/Ac S240.00
$220.00
S200.00
$180.00
S160.00
$140.00
Sl20.00
Sl00.00
SI0.00
0.0 10.0 20.0 30.0 00.0 50.0 60.0 70.0 80.0 90.0
Proposed Dwelling Units per Acre
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 50
High Density Land Value
Similar to the preceding very low-density land search, we searched data sources for high and medium-high density residential land transactio ns and examined data that was discovered by talking to brokers, agents, property owners, and market participants from within the subject market. We also reviewed development reports provided by the planning departments of Santa Clara and other nearby cities.
As stated above, for the high-density value component, we assumed a density of 45 dwelling units per acre, about the midpoint of the allowed range under the High-Density General Plan designation, which allows 37-50 dwelling units per acre. The sales we found most comparable are displayed on the next grid.
A map showing the location of these comparables is displayed in the Addenda. A parcel map for each comparable sale is also displayed in the Addenda. Selling prices were verified using our summary transcript of the public record and conversations with selling and listing brokers/agents, sellers, and buyers.
We were unable to confirm the details of Comparable HD-2 with a party to the transaction. When we were unable to confirm with a party to the transaction, we relied on published data, city records, subscription service data, news articles, and information available from a summary transcript of the public record for transaction details regarding these comparables.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 51
lilGN DENSITY LAND co:MPARABLI SAL:ES
II.DII:NT OF ADJUSThiil'li"T SUBJICT COMPARABL[ HD-1 Cm.1PARABLI HD-! COMPARABL[ HD-3 C0;\1PARABL[ lID-4 COMPARABL[ HD-S COMPARABL[ HD-6 COMPARABLE HD-7 A,·enge Str ... t 950 Monroe St 1601 Ci,·icCenterDrin 3941 Stevens Creak Bh·d. 2303-23 19 c.l.le Del Mundo 2221-225 1 c.l.leDeLllna 998 S. De Anza Bh-d 2891 Honm tead Road ADDRESS 2232-2246 C.lle Del Mundo ,_ -
,- Santa Clara Santa Clara Santa Cl.an Santa Clara Santa Clara Santa Clara San Jc= Santa Clara (Unincorpon.ted) AP.· 269-20-086 224-49-006 294-39-0 10 09 -05-060 & 061 09 -46-020 & 02 3 2-26-019 290-39-0S0 SELLER Von Raeneld Family Partnership K & K Outdoor Ad,·ertisin~ LLC MB Exclusinly ?roperti e, LLC Beta & Propert ies LLC Laison LLC/2232 Calle Del Mundo LLC Baram LLC " 290-39-0 S0 BUYER Lamb Partner. LLC Clv1C Center L? CRP The l\Ieridian LP 2263 C.lle Del l\lundo LLC GS Tasm211 East Si:bsidiary, LLC D, .~Bh·dLP Xfortune Homestead E.stat• LLC DOCUMENT NUMBER 24395084 24380714 25233 09 24S4002 25062330 5062315 2563 4S6 In Escrow VERIFICATION SOURCE Broker, Pcl>lic R.ecord S1'1»cription S,·« , Pcl>lic Record Si:bscript ion S,·« , Pcl>lic R.ecord Sul»cription Sv«, Pcl>lic Record Sul»cription S,·« , Pcl>lie Record Broker, Si:bscription S,·« , P,,blic Record Broker, Sul»cription S,·« , P,,blic Record EXPOSURE TO l\•L<UU<ET 12 Months 12 Months 12 l\ofont.hs 12Months 12 Months ot Discl<=d one - NUMBER OF Ul'ITTS 45 36 (Pro R.au,) L-1 - _7 _7 50 12
SAL[ / usm.-G PRIC[ 54.700.000 Sl! .100.000 SS.07S.000 S8.000.000 S?l.995. 000 SS.510.000 $3.500.000 SALE / OITDUNG PRICT PrR SF S207.73 S197.03 Sl97.47 S181.83 S! 3S.9S SU! .81 S167.06 TRANSACTIONAL ADJUSTh1I.NTS
REAL PROPERTY RIGHTS CONVEYED Fee Simple Fee Simpl• (Short Term L.ases) Feo Simple Fe• Simple F .. Simple F .. Simple Fee Simple Fee Simple ADJliST.\JL\ T 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% FINANCING TERMS Con,·entional Con,·entional Con,·entional Con,·entional Conventional Con,·entional Con,·entional ADJljSTJJL\ T 0.00% 0.00% 0.00% 0.()0% 0.00% 0.00% 0.00% CONDmONSOFSALE Assemblig• Arm's-Len~th Arm's-Length Assemblag• Assemblage Arm's-Length Arm's-Len~th .-IDJliST.\JL\"T -5.00% 0.00% 0.00% -5.00% -5.00% 0.00% 0.00% EXPENDITURES AFTER SALE Demolition Qff,,et Demoliti011 of 30k SF Offieo Building Demoliti011 Off,el Domolition Offsot Demoliti011 Offs, t _ 011e Demolition Offsot ADJTJST.\fE,\T 0.00% 1.65% 0.00% 0.00% 0.00% 0.00% 0.00% CLOSE OF ESCR.OW February 3, 2020 Jan=:; 15, 2020 February 03, 2022 Febri:ary 19, 2021 Au~s t l , 2021 1ay 16, 2024 " Jani;ary 23, 2025 TTh!E OF SALE / -1ARKET CONDmo ••
I,
December 3 , 2024
-
December 2018 Est. Sept 2019 April 202 1 Est. April 2019 Est. Feb. 2020 I,
.1ay 2023 " December 2024
MONTHS FROl\1 START lQ-2019 THROUGH 4Q-20 9 2 3 0 8 0 0 0 .-IDJl jST.\JL\7 @ ¾ PER .\JOXTH i, 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% l\lONTHS FROM START lQ-2020 THROUGH 4Q-2020 2 2 0 2 10
I,
0 " 0
.-IDJliSD fLYT @ ¾ PER .lfOXTH i, 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% l\!ONTHS FROM START lQ-202 THROUGH 4Q-202 l 2 2 8 2 2
I,
0 " 0
.-IDJl.iST.lfLYT @ ¾ PER .lfOXTH i, 0.00% 0.00% 0.00% 0.00% 0.00% 0.1)0% 0.00% 0.00% l\lONTHS FROM START Q -2022 THROUGH 4Q-2022 2 2 2 2 12
I,
0 " 0
.-IDJl iST.\JLYT @ ¾ PER MOXTH i, 0.30% 3.60% 3.60% 3.60% 3.60% 3.600/4 ~ 0.00% " 0.00% l\lONTHS FROM START Q -2023 THROUGH 4Q-2023 2 2 2 2 12
I,
" 0
.-IDJljST.\fLY T @ ¾ PER MO,\ "TH 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.10% 0.00% MONTHS FROl\'1 START Q -2024 THROUGH 4Q-2024 2 12 2 2 12 2 0 .-IDJl iST.\fL\T @ ¾ PER .lfOXTH 0.50% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 0.00% ADJ PRi crtS F AFITR TRA,"'1/SACTIONAL ADJS S216.7! S?l9 .95 S216.85 S189.70 S:?-46.16 S132.91 S167.06 LOCATIO NAL ADJUS TMll'lTS
EXPOSURE/ \ 1SIBil..ITY Average Similar/Corner Similar Similar Similar Similar Similar Similar ACCESS A,·ei-aga Similar Similar Similar Similar Similar Similar Similar APPEAL/SITE INFLUENCES Axe:r2~e Similar Similar Similar Similar Similar Inferior Inf;,rior ZIP CODE 95050 95050 95050 9505 1 95054 95054 95 29 9505 OU:R.-U.L LO CATIONAL RUING Similar Similar St.--,,erior Similar Similar Inferior Inferior PHYSICAL ADJUSTh'IIJ\i"TS
SITE SIZE (ACR.ES) 1.00 0.52 1.41 0.59 1.01 2.14 1.03 0.481 SITE SIZE (SF) 43,560 22,625 6 ,411 25,700 43,996 93,2 S 44,866 20,950 Rectan~lar / l Str .. t Fr011t / 2 Ingress &
UTILITY/TOPOGRAPHY Re<:tan,:ular / l Street Front l\lo,t lv Re<:tanralar/2 Fronta~e, Mostly lteetan,:ular/Deed Re>t R.e<:tan,:ular / 2 Street Fronts Re<:tanrular / l Street Front Mo1tlv R..-c:tan,:ular / 3 Street Fronts E,:ren Ea,,ments for R.ear Paree! SI Irrei:ular Narrow Lot / l Street Front USrtZO NING ADJUSTMI.NTS
ZONING CC (Community Commercial) 0G CT TN (Transit N.;~borhood) TN (Transit Nei~borhood) Commercial Padestrian l\ledium Dansity Res GENERAL PLA .. 1'< Hi~ D-=i ty R...idential Community Mixed U,e Community Commercial Community Mixed Use Tnnsit 'eighborhood Transit eighborhood eighborhood I Community Commercial -ledium Density Res ALLOWED DENSITY (dwelling units per acre) 3 -50 /A 'IA 20-36 Minimum 00, Up to 350 dulaere Minimum 100, Up to 350 c!,;laere 50 to 55 Estimated 20 10 36 NUMBER OF UNITS 45 36 (Pro Rata) l 9 59 303 3 1 50 12
ESTJ.\£ffED I PROPOSED DU/ACRE -15.0 ci9.3 S-1.-1 100.0 I,
156.0 1 3.-1 -IS.5 25.0
INTE.l\'DED USE Residential . 1ixed-U,e Condos and Retail Affordable Ho,:.sing Affordable Ho,:.sing R...idential Residential R...idential R...idential AFFORDABLE HOUSIKG COMPONENT 0% or in-lieu 10% or in-lieu y,,., 00% Yes / 00% In-lieu Fee In-lieu Fee Ye:J / 00% No ENTITLEl ·ID<"T STATUS Has Zoning & GP Had General Pl.an _ 'eeds Zoning and General Pl.an Had General Pl.an Has Zoning & GP Has Zoning & GP Has Zoning & GP (100% Deed strieted Has Zoning & GP Affordable Housing Denlopments . .\llo"·ed
Using General Pl.an H-2.9)
OU:RALL PHYSICAL & USrtZ ONING RATING St...,_;or s • ....;or St...,_;or Inferior Sli!htlv St...,_;or Sli!!htlv InfMior InfMior OU:RALL R-\TING - SUBJI CT SHOULD SILL FOR L:ESS LESS L:ESS MORr LESS MORr l\·IORr Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 52 Adjustment Process
Transactional adjustments were made sequentially for property rights conveyed, financing terms, conditions of sale/motivation of participants, expenditures incurred by the buyer after the sale, i.e. demolition costs, and market conditions since the sale date.
Comparable HD-1 was purchased as part of an assemblage. The buyer had recently purchased two adjacent properties. Similarly, Comparables HD-4, a nd HD-5 were also purchased as part of an assemblage. Based on the data, a downward adjustment is warranted for motivation on the part of the buyer due to the assemblage.
Comparable HD-2 is a closed transaction of an infill site improved with a vacant 30,000 square foot office building. This buildin g will require demolition prior to redevelopment, estimated at $200,000, based on our observation and cost data. Th is element of comparison is shown as an upward adjustment on the Expenditures After Sale line.
Comparable Sale HD-6 is a vacant one-acre parcel located on South De Anza Boulevard. The site was previously improved with a restaurant buildi ng that was completely destroyed by a fire. The seller completed all demolition work. The site has two ingress/egress easements that provide access to the rear parcel. Buyer plans to construct a 50-unit affordable housing project.
Comparable Sale HD-7 is the sale of a residential site improved with an older single-family home.
The proposed plans include the construction of twelve new f our-story townhouses and the demolition of the existing single-family house. The site is narrow and has 51.54 feet of frontage.
The property was originally listed on the ML S for $3,888,888 before being canceled in April of 2024. The property later sold off market with the original listing broker.
Comparables HD-1, HD-3, HD-4, HD-5 and HD- 7 required the demolition of existing improvements before their new, intended use coul d be realized. We concluded this expense was offset by the interim income from the improvements. So, no additional adjustment was warranted for this element of comparison.
Locational adjustments were broken into elements that reflect the property’s identity to potential tenants or buyers (exposure, visibility), access (to freeways and amenities), and overall desirability of the location based on neighbor hood factors such as age and c ondition of nearby properties, proximity to enhancing or detrimental factors, or an identifiable valuation element relating to address (locational appeal, zip c ode). Locational adjustments were warranted for the elements of comparison summarized on the grid.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 53 Physical and Use/Zoning adjustments were broken into elements that reflect property size, utility/topography, allowed land uses and density, intended use/de velopment density, affordable housing component, park fees, and entitlement status. Physical and use/zoning adjustments were warranted as summarized on the grid.
Comparable HD-1 and HD-3 both had two street frontages, allowing for greater design flexibility, rating superior utility, and wa rranting downward adjustment. Comparables HD-4, and HD-5 are zoned Transit Neighborhood and have a minimum density of 100 dwelling units per acre.
Comparable HD-3 will have 100% affordable hous ing and was given a 15% credit on the park fees. Comparable HD-4 has been given a credit of $1,290,000 for park fees in exchange for 14,000 square feet of dedicated park space and private amenities. The comparables proposed building densities/acre bracket the subject; the highest densities warrant downwar d adjustment and the lower densities warrant an upward adjustment. Comparables HD-1 and HD-2 will require a zoning change or general plan amendment to allow for residential and an upward adjustment is warranted for this element of comparison. The comparables with approved entitlements rated superior to the subject’s unentitled status and are adjusted downward. Park impac t fees varied somewhat based upon the use and timing of the fee.
Conclusion
Following adjustment for the elements summarized on the grid, we concluded to the overall ratings displayed at the bottom of the grid. The comparab les were analyzed base d on a price per square foot and a price per unit units of comparison. The range of adjusted values is more consistent on a price/SF basis rather than a price/density unit basi s; therefore, the price/ SF is utilized as the primary comparison of value. Bracketed by th e comparable ratings, the following value of unentitled high-density 45 DU/Acre residential land in the 95050 zip code is concluded:
Unit $/SF x Land Area (SF) = Indicated Value
$180 x 43,560 = $7,840,800
Estimated Market Value of a 1-Acre
High-Density Residential Lot in 95050 Zip Code: $7,840,800
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 54
Commercial Land Value
Like the search for residential land sales data, we searched similar data sources and examined data that was discovered by talking to brokers, agents , property owners, and market participants from within the subject market. We searched for recent sales of competing retail and office properties throughout Santa Clara and nearby cities. Those we found most comparable are displayed on the grid on a following page. A map showing the locati on of these comparables is displayed in the Addenda.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 55
COMMI.RCIAL LA.l'l;"I) cm,,£PAR.-WLI SALIS
IU:MD',1 or ADJUS TMINT SUBJICT COA'lPARABU C -1 coA,[PARABLI C- ~ COMPARABLI C-3 COMPARABLI C-4 COMPAR.ABU C-5 Cm.fi>ARABLI C-6 LISTING C-7 ADDRESS A,·erage Street 33 75 El Camino Real 33 78 El Camino Real 2035 White Oak Lane 855 E Home1tead Road 1220 Oak:mead Pl..")'. 1601 Technology Dri,·e 955 & 995 Oakland Road - Santa Clara - Santa Clara Santa Clara Santa Clara Sunny vale Sunn:)"•ale San Jose San Jose AP. 220-02-049 290-02 - · 02 2 3-3 0-0 53 309 -5 - 005 2 6-44-048 230-29- 235- 6-0 & 0 2 SELLER ormaE Riee, Trustee AnSShin Sorc!o.llo Family Trust Sundby Living Tnnt Prineeton Garc!a,:, Propertie, LLC Hudson Skyport Plaza Land B\ Oakland RD San Jose LLC BUYER 33 5 Camino City Square LLC \'eguard USA LLC Shell Oil Products US SST Io,·eitments LLC BPR Propertiei UCSC LLC Kaiser Foundation Health Plan Listing
SALE PRICE / USTJXG PRICE
~
59,925 ,000 55,340,000 S3, 00,000 S6,400,000 54,45 0,000 543 ,500,000 S5,400,000 PARCEL SIZE (Acre. ) .00 .630 O.S 0. 16 . 30 0.9 0 5.46S .659 PARCEL SIZE (SF) 43 .560 71.00 3 38.2 11 3 1.17 3 49.223 42.240 238 .186 72. 260 SALES PRICE.'SOUAR.E FOOT Sl 39.78 Sl 39.75 SllS .69 Sl 30.0~ S l 05.35 SlS~.63 S74.73 DOCUMENT ?>11.JMBER 24595 053 24569843 255 75802 24998 730 2509 1522 25564498 LiJtin; EXPOSURE TIME 2 1\font hl Off Market (6 Monthl in 201 9) 103 D2vs 2 Mont hs I Month Not Disdosed Not Ditc losed TRANSACTIONAL ADJUS TMit.1S
REAL PROP . RIGHTS CONVEYED - Fee Simple F. Simple (Short-term Le2.SH) F. Simple (Shor t-term Le2.SH) Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple FINANCING TERl\lS S All Cash All Cash AUCash A.II Calh Con,·entional A.II Cash Listin; CONDmo ·s OF SALE Arm's-Length/Improved Arm's-Length/Impro,·ed . lotinted Buyer Ann's-Length/lmpro,·ed Ann's-Length/Improved . fotinted Buyer Listing .IDJCjST.\JE.\ T - 5.0% .0% - 0 .0% 0 .0% 0.0% -20 .0% - 0 .0% EXPE NDITURES AFTER P iRCHASE 1one ·one .1. ·one Demolition Offset by Income Demolition Off.set by Ineome one .·one ... U)JCjST.\JE.Yf 0 .0% 0 .0% 0 .0% 0 .0% 0 .()% 0 .0% 0.0% CO iTRACT DATE I !KT CONDmo 'S Dacember 3 , 2024 July2 020 June 2020 ovember 2023 farch 202 August 202 0 nknO \\il Deeember 2024
RECORD "GDATE August 3 1, 2020 August 10, 2020 December 15, 2023 June , 202 1 ~tember 0 8, 202 ovember 2 , 2023 Listing MONTHS FROM END l Q-20 THROUGH 4Q-2 l 18 0 9 3 0 0
ADJc;snm , T@ ¾ PER .\fOXTH -0 . 5% • 2. :5% 3.:50% 0.00% -6. 5% -2.2:5¾ 0.00% 0.00% ll\lONTHS FROM START Q-2 022 THRO UGH 4Q-2 022 2 12 0 12 12 0 0 .WJliSD fEl\T@ ¾ PER .lfOXTH ,.
0 .00% "' 0.00% i.. 0.00"/o i.. 0.00"/o ,. 0.00"/, i.. 0.00"/o i.. 0.00"/o ,. 0.00"/o I MONTHS FROM START Ql -2023 THROUGH 4Q-2 023 12 12 l 12 12 0 0 .WJljST.\ffi, T @ ¾ PER .\fOXTH 0 .00"/o 0.00"/o 0.00"/o 0.00"/4 0.00"/4 0 .00"/4 0.00"/o 0.00"/o I MONTHS FROM START Q -2024 THROUGH 4Q-2 024 12 2 12 12 12 12 0 .W JL"ST.l!L, T@ ¾ PER .\fOJ, TH -0.20% -2.40% -2 .40% -2.4 0% -2 .40% -2.4 0% -2.40% 0.00"/o ADJ . PRI CIJS F WITH TR-\NS . ADJ . S101.1 8 Sl OS.00 S104. !6 S118 .33 S100 .Sl S14! .60 S67.16 LOC ATIO NAL ADJUSTML'ffS
EXPOSURE A,,Ma~e Superior /Comer Similar S1.-perior Similar Similar Simi.l.ar Similar APPE- ITE INFLUENCES.I ACCESS A,·erage S1,-perior S1.-perior Similar Similar Similar Similar loferior ZIPCODE 95050 95 051 9505 1 9505 1 9408 7 94085 95 110 95 112 LOCA TIO NAL coA,£PARISO N S1...,_;or s1.........;or S1.-oerior Similar Similar Similar Similar PHYSICAL & USI/ZO NING ADJUSTML~S
PARCEL SIZE (Acres) 1.00 1.63 0 .88 0.72 1.13 0 .97 5.4 7 1.66 UI1l.lTY A,·en~e Simiw- Si.mi.l.ar Si.mi.l.ar Similar Similar Simi.l.ar Similar OFF-SITE Il\lPRO VE.l\lENTS Finished Lot Similar Similar Simi.l.ar Simi.l.ar Simi.l.ar Simi.l.ar Simi.l.ar ei~borhood Comme,cial /
20 'G!GENERAL PL~ CT I Regional Commercial CT I Community :Mixed-Use CT I Community Mixed-Use Nei~borhood Commercial OJPD I Commercial l\lS I loc!i;strial A(PD ) c!i;strial Park Combined Industrial/Commercial Offiees . Prior Appro, ·al of 35 0,000 s.f.
PROPOSED USE(S) Commercial Retail in Near-Term Retail in Near-Term Charwi~ Station s Offiee or Preschoo l Hotel Offiee Buildin6 . Listin~ PHYSIC AL & USI/Z O Jll"ING COAfi>ARISO N s .. ........;or S1.-.-;or ScOi!rior s,,._;or s,,._;or S1.-oerior Inferior SIJBJICT SHOULD SILL FOR: L eu Leu L ess Leu Leu Leu More Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 56 Adjustment Process
The adjustment methodology was similar as above for the residential land sales.
Transactional adjustments were warranted. As described above, due to a lack of commercial land sales, some improved sales were utilized. As described below, the improvements located on C-1 and C-2 had value, while C-4 and C-5 improvements had minimal contribution towards value.
Comparable C-1 was marketed as a development site; the eventual buyer planned to continue the retail uses. Based on a discussi on with the listing broker, our observations, and the age and condition of these impro vements, which comprised about 25, 150 SF, the contributory value was estimated at about $60 per square foot of building area, or about 15% of the selling price as shown on the adjustment grid. This is shown as a conditions of sale downward adjustment.
Similarly, the sale of Comparab le C-2 included about 7,800 square feet of improvements dating from the late 1950s; which contributed to the overall selling prices. Based on our observations and discussions with the broker, the contributory value for the building was estimated at about $75 per square foot of building area, or about 11% of the selling price as shown on the adjustment grid.
This is shown as a conditions of sale downward adjustment.
Comparable C-3 was previously improved with an older retail center that was completely destroyed by fire prior to the listing. The 0.716-acre site was reported to be vacant at the time of sale with only old asphalt pavi ng remaining. The buyer will reportedly develop the property and install charging stations.
Comparable C-4 included a 6,295 sq uare foot restaurant building originally constructed in 1972.
This site was being sold for land value and the restaurant was leas ed month-to-month. We concluded that the cost of demolition would be offset by rental income.
Comparable C-5 included a 5,515 square foot restaurant building. The building was vacant at the time of sale, but could have been leased on a month-to-month basis. We concluded that the cost of demolition would be offset by rental income.
Comparable C-6 is the sale of a vacant commercial site located next to an existing Kaiser facility and was purchased by Kaiser for the expansion of their healthcare services. The seller, Hudson Pacific Properties had origina lly purchased the site to build a nine-story 350,000sq.ft. office building, but resold the property as the office market softened.
Comparable Listing C-7 is a current listing of a vacant corner site that was advertised as a development opportunity. The 1.66-acre property is about one-block from the 101 freeway. All Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 57 improvements have been demolished. The general plan allows a mixture of compatible commercial and industrial uses.
Market conditions adjustments were applied from the contract date thr ough the date of opinion using the degree of adjustment(s) discussed in the Market Conditions section.
Locational adjustments were broken into elements that reflect the hypothetical property’s identity to potential tenants, buyers, or occupants (exposure, visibility), access (to freeways and amenities), and overall desirability of the location based on neighborhood fact ors such as age and condition of nearby properties, proximity to enhancing or detrimental factors, or an identifiable valuation element relating to address (locational appeal ). Locational adjustments were warranted as summarized on the grid.
Physical and Use/Zoning adjustments were considered for size, utility, off-site improvements, zoning/General Plan, and planning/entitlement status. Within the range of the comparables, larger Comparable C-6 warranted an upward adjustme nt per square foot of land area. Among the differences in land use ordinances, those of Comparables C-1 and C-2 were more favorable, rating superior and warranted a downward adjustment.
Conclusion
Bracketed by the comparables, we concluded to the following for commercial land in zip code 95050:
Unit $/SF x Land Area (SF) = Indicated Value
$95 43,560 $4,138,200
Estimated Market Value of a 1-Acre
Commercial Lot in Zip Code 95050: $4,138,200
Industrial Land Value
We searched the same databases listed above and reviewed othe r data discovered by talking to brokers, agents, property owners, and market partic ipants from within the industrial market. We searched for recent sales of competing industr ial properties throughout Santa Clara and nearby competing cities with similar industrial markets. We also searched for recent improved sales with improvements that were nearing th e end of their economic lives or that contributed minimally to the overall sale price. Those we found most co mparable are displayed on the following grid. A map showing the location of these comparables is displayed in the Addenda.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 58
INDUSTRIAL LAND CO;\fPARABLI SALES
ILIM I.!"1,i OF ADJUSTMI~, SUBJI CT CO;\fPARABLI 1-1 CO;\1PARABLI I-? CO;\'IPARABLE 1-3 COMPARABLI 1-4 CO;\IPAR.ABLI 1-S LISTINCI-6 ADDRESS AxengeS reet 2225 brtin A,·e 2 5 12rtinAve 535 & 5 5 lndusirw A ·e 365 R-"i!d St Doyle Road & Lawrence ExprenW2y 4 5 AldoA,·e& 20 i!loStreet Santa Clara Santa Clara Santa Clara San Jose Santa Clara San Jose Santa Clara -AP. 224- 0- 9 224- 0- 5 23 -30-020 & 025 230-4 - 05 38 - 9-0 . 0 - 5-040 & 3 SELLER Project 38 LLC LVP 12rtin .i~xe Assoc LLC Fnnk J. & Leslie A. !angione Reed· treet Associates \"op Raf Doyle LLC Dcmg Properties LLC B iYER 2225 'lartin Property LLC 2 5 .1).12rtin Property LLC LBA R\1 Company XI.IV LLC Prosperous Cor_gi Holdings LLC Harker Sc:hool Listing SALE PRICE S2S,250,000 S 3 ,900,000 S 2 ,800,000 S5,35S,OOO S5, 00,000 S 3,000,000 DOCUMENT 1BER 25 9586 250204 2490232S 24 2 S53 255 4 4 In Escrow BONDS ASSUMED/ SF S0.00 S0.00 S0.00 S0.00 S0.00 S0.00
TOTAL COST TO BUYIR / SF S157.03 S189.94 SSl.1 7 S104.70 S114. 38 S12-3.99 TRANSACTIONAL ADJUSTMEl"l,iS
REAL PROPER.TI RIGHTS CONVEYED Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple - ADJTlST.\1'£\ T 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
FINA! iCJNG TER.! IS Com·ention.al All Cash Con,·ention.al All Cash All Cash In Escrow ADJTl ST.\fE,\ T 0.00% 0 .00% 0.00% 0.00% 0.00% • 0 .00% COND 0 ·soFSALE Ann's-Length Arm's-Length Arm's-Length Arm's-Length Arm's-Length Arm's-Length ADJUST.\lENT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
ADD 0 AL COSTS TO BUYER Demolition Offset Demolition Offset Demolition Offset one one Demolition Offset ADJTlST.\ffi\T 0.00% 0.00% 0.00% 0.00% 0.00% 0 .00%
CONTRIB ORY VALUE OF 'IPROVB-.IENTS one one one Yes. 4, 45 SF one one ADJTlST.l/E;\ T 0.00% 0.00% 0.00% -22.53% 0.00% 0.()0%
CLOSE OF ESCRO\ - 02
'
02 41 02 ,4 020 0 023 In Escrow
TIME OF SALE/ .1).L~T co mmo . December 3 , 202 - .. UoknO\\'ll Ji:ne 202 September 2020 September 2020 ,.
UoknO\\'ll
,.
January 2025
?v10'S FRO 1 SALE THROUGH Dec. 3 , 020 0 0 3 3
,.
0 ,.
0 A.DJTlST.\1'£\ T ¾ PER .lfO,\TH
,. 0. 5% .. 0.00% ,. 0.00% ,. 2.25% ,. 2.25% ,. 0.00% " 0.00% MONTHS FRO_ 1 START Q-202 THROUGH Q-202 0 6 2 2
,.
0 ,.
0 ADJTlST.\1'£\T ¾ PER .\10,\ TH
,. 0.00% ,. 0.00% ,. 0.00% ,. 0.()0%,. 0.00% ,. 0.00% ,. 0.00% :MONTHS FRO. 1 ST ART Q-2022 THROUGH 4Q-2022 2 2 2 2
,.
0 ,.
0 ADJTlST.\1'£\ T ¾ PER JJO,\TH ~ 0.00% ,. 0.00% ~ 0.()0%~ 0.00% ,. 0.00% ,. 0.00% ,. 0.00% l\'10. ITHS FROM ST ART Q - 023 THRO -GH 4Q-2023 2 2 2 2 ,.
0 ~
0 A.DJUST.\1'£\ T ¾ PER .\fO,\ TH 0.00% 0.00% ~ 0.00% ~ 0.00% ~ 0.00% ,. 0.00% ~ 0.00% MONTHS FRO. 'I START Q -2024 THROUGH 4Q-2024i 2 2 2 2 2 0 ADJTlST.\fEi\T@ ¾ PER.lf O,\ TH -1.00% -12.00% -12.00% -12.00% -12.00% -12.00% 0.00% ADJUSTID PRICT / SF S138.19 S167.IS S73.04 S71.98 S100 .65 S111.59 LOCA TIONAL ADJUS illL"l,iS
E,"{POSURE/\ 1SIBII.ITI .Aver-a~e Similar Similar S1.-plf"Y Similar Similar Similar ACCESS .~venge Similar Similar Similar Similar Similar Similar NEIGHBORHOOD APPEAL .~verage Similar Similar Inferior Similar Inferior Similar ZIP CODE 95050 95050 95050 95112 95050 95129 95054
LO CATION.-\!. COMPARISON Similar Similar Inferior Similar Inferior Inferior PHYSICAL & USI/ZO NINC ADJUSTMI~,S
PARCEL SIZE (ACRES) 1.00 4.13 !.6 S 3.62 1.17 !.02 2.41 PARCEL SIZE (S 43,560 9,903 3, S 5 ,6S 5 ' 4 44,590 ,850 UTILITI Avenge Similar Similar Similar Similar Similar Similar OFF-SITES Finished Lot Si.'j)erior Power S1.'j)erior Power Similar Similar Similar Similar -
INTENDED SE lndc3trial Inc!wtri.t! lndustri.tl lndustri:al Parking for Sc:hool Vehicles Industrial -zo "G Heavy lndustri:al Light lndustri:al Light lndustrw Heavy lndustri:al Light dustri:al Light Industrial Heavy lndustri:al GEN'ERAL PU •• N" Light lndustri:al Low Intensity Offi~e/R&D Low Intensity Offi~eJR&D Heavy lndustri:al Light lndustri:al Light Industrial Haa,-y Industri:al O'1:RA I.L PHYSIC AL & USI/ ZONINC R!\TINC Superior S1.'l)erior Inferior Inferior Inferior Inferior O\"IR.UL RATINC-SUBJICT SHOULD SILL FOR LESS LESS MORI MORI MORI MORI Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 59 Adjustment Process
Adjustments were considered for and applied in a similar manner as above for the commercial sales. Because there are few industrial land sales in this market, we us ed one sale that was improved with a building that contributed value to the selling price, Comparable I-4. To estimate the residual land value of this transaction, we estimated and deducted the contributory value of the building improvements based on our observations, feedback from the verifying broker(s), and the adjustment that was a good fit for the data.
Most of the recent industrial land transactions we uncovered were intended for data centers (see Industrial Land Comparables I-1 and I-2). A tran saction at 2315 Mission College Boulevard in Santa Clara (not included in the sales grid) is also a data center land sale that was reported to have been purchased by Amazon Data Services Inc. The 7.04-acre site reportedly sold for $51,817,500 or $168.97sq.ft. of land area (unadjusted), which is high and out of the pattern. This sale could not be fully confirmed but was reported to have cl osed escrow on January 4, 2022. According to the grant deed, this is part of a larger sale comprising several APN’s. totally about 68 acres.
Market conditions adjustments were applied at th e rate concluded to in the Market Conditions section. Like the commercial sa les grid, locational adjustments were considered for exposure, visibility, access (to freeways and amenities), and overall desirability of the location, including zip code. Locational adjustments are warranted as summarized on the grid. Sale I-3 was adjusted upward for its inferior San Jose location.. Listing I-6 is reported to have gone into escrow in January 2025 at an undisclosed price.
Physical and use/zoning adjustments were cons idered for size, utility , intended use, zoning, general plan land use designation, and off-site improvements. Both I-1 and I-2 were purchased by Prime Data Centers. Comparable’s I-1 buyer pl ans to develop a 207,000 square foot data center with a 32MW capacity. Comparable’s I-2 the buyer plans to develop a three story 80,000 square foot data center with a reporte d 9MW capacity. The selling agent reported that the property sold entitled and has a “will serve letter’ from Silicon Valley Power. These sales warranted downward adjustments for their entitlements. Any other warranted adjustments are summarized on the grid.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 60 Conclusion
Following the adjustments discussed above and considering the overall rating comparison for each comparable, the comparable unit values suggested a land value in the $115 per square foot range.
We concluded to the following for industrial land in the 95050 zip code:
Unit $/SF x Land Area (SF) = Indicated Value
$115 43,560 $5,009,400
Estimated Market Value of a 1-Acre
Industrial Lot in Zip Code 95050: $5,009,400
Average Value Estimate in 95050 Zip Code
The average value was estimated by applying a we ighted average based on the land area of the total sales in Santa Clara in 2024 by property type. This information was obtained from Old Republic Title Company (ORTC). It was an extraordinary assumpti on of this appraisal that the land areas provided by Old Republic Title Company were accurate.
ORTC reported a total of 886 sale transactions in the city of Santa Clara in the calendar year 2024.
The 2024 sales included 16 commercial sales, 22 industrial sa les, 448 residentia l single-family sales, 23 2-4 residential unit sales, 3 vacant land sales, and 374 medium to high-density residential sales which comprised residential unit sales greater than 5 units, condominiums, and townhomes.
The 2024 sales volume show s an increase when comp ared to the 686 total sa le transactions in 2023, however, the 2024 sales volume shows a decline when compared to just the 1,064 total sale transactions in 2022, and the 1,442 total sale transactions in 2021.
Residential transactions included single family, townhomes, and condominiums, 2 to 4 units, and residential units greater than 5 units. Historically, the total residential sales component comprised the majority of the land area sold. However, as shown in the next table the commercial and industrial sales increased comprising over half of the total land area sold in the city in 2024. This is due primarily to the purchase of a commerc ial property at 2962 Bunker Hill Lane that is on a
18.994-acre site and is improved w ith an office comple x. In addition, th ree large properties classified by ORTC as industrial properties sold in 2024. 3833 Kifer Road on 27.254 acres, 2880 Scott Boulevard on 14.35 acres, and 2220 Central Expressway on 14.35 acres.
The 2024 data indicated that residential values, ex cept high density, were si milar in all three zip codes compared to 2023, High density residential va lues in 2024 however declined slightly from the previous year.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 61 Commercial land values were unc hanged in 2022, 2023 and 2024. I ndustrial land values were unchanged in both 2022 and 2023, but did declined slightly in 2024 due to the increase in the vacancy rates and a decline in rental rates.
In 2024, the combination of higher interest rates, the 2024 elections, and expected slower economic growth has impacted the market. Additionally , more commercial and industrial land area transacted, which has a lower unit value than residential land, in 2024 compared to 2023. All these factors resulted in slightly lower 2024 values for the hypothetical one-acre lots for each zip code compared to 2023. This is congruent with overall market trends over the last year.
The total number of land square feet (SF) sales (broken out by pr operty type) is re flected in the next table:
Old Republic Title Company provided the data depicted in the preceding 2024 City of Santa Clara Sales table, segregated by property type. Their single-family sales were grouped into very low density, 2-4 residential sales were grouped into low-density, the townhome and condominium data was grouped into the medium to high-density residential, reta il and office was grouped into commercial, and industrial, R&D, and manufacturing was designated industrial. As shown in the table, within the city limits of Santa Clara, commercial/industrial sales accounted for a larger
56.86% of the total compared to about 50% in 2023, while residential sales accounted for about
43.14% of the total.
Conclusion
2024 City of Santa Clara Sales
Sale Type Land SF Total Percent
Commercial 1 307 554 14.34%
Industrial 3,875,467 42.52%
IV ery Lo\ Densi Residential 2 813,195 30.86%
Low Density Residential 196,865 2. 16%
~.fedium to High Densi Resident 922,380 10.12%
Total 9,115,461 100.00%
Source: Old Republic Title Compan
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 62 The Total Percent in the previous table was applied to the appropriate categories for each property type. Since the data provided by the title co mpany did not segregate medium and high-density residential, we split the total percentage evenly between the two densities (10.12% /2 = 5.06% to each). As shown in the next table, the appropr iate weighted values are summed to produce the average value of a hypothetical 1-acre lot in the 95050 zip code:
Average Value of a Hypothetical 1-Acre
Lot in the 95050 Zip Code: $5,180,000 (Rounded)
AVERAGE VALUE ESTIMATE IN 95051 ZIP CODE
We estimated the value of 1 acre of land for zip code 95050 above. Following we apply any differences in value between the 95051and 95050 zip codes to estimate the average value of one acre of land in 95051.
Estimating Differences Between Zip Codes
Differences between the 95050 and 95051 zip code for each use was based upon market feedback and anecdotal information. We also considered differences in values/rents for the commercial and industrial uses, and compared median selling prices and rents for the residential uses.
Residential Difference
Market participants and selli ng prices provided support that re sidential prices in the 95051 zip code are generally higher compared to the 95050 zip code. Some brokers believed that the 95050 area was slightly better due to Santa Clara Univ ersity and a larger upper-middle class. Others pointed to the fact that the 95051 includes an area of the city close to Apple’s headquarters and also within the Cupertino Union School District, a higher rated school distri ct, which commands residential price premiums. Several brokers reported that some of the nicest neighborhoods in the 95050 ZIP COD[ S IMAR.Y
2024 LAND US[ VALUES & A VERAG[ V ALU[ P[R ACRE
Land Use Ptice per SF Plice per Acre x \\ eighted Average = Weighted Value 1Vel1' Low Densit y Res idential $120.00 $5,227,200 :t 30.86% = $1,613,208 Low Densi ty Residential $125.00 $5,445,000 :t 2.16% = $11 7,595 Medium Density Residential $150.00 $6,534,000 :t 5.06% = $330,583 High Density Residential $180.00 $7,840,800 :t 5.06% = $396,699 Commercial $95.00 $4,138,200 :t 14.34% = $593,598
Indu sniaJ $115.00 $5,009,400 :t 42.52% = $2,129,762
TOTAL A VERAG[ VALUE P[R ACRE $5,181,445
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 63 City are in and around San Tomas Expressway, which bisects 95050 and 95051. Recent residential yearly-summary median prices/SF and Year End 2024 median prices/SF between the 95050 and 95051 zip codes, as reported by DQ News /CoreLogic and MLS Listings, indicated the following:
The chart above indicates that the median selling price/SF has historically been higher in zip code 95051, corroborating the general consensus among market particip ants. This data supports the opinions of market participants that 95050 rates inferior to 95051.
In the next table, based on data reported by th e MLS the median price in 95051 has historically been about 10% higher than zip code 95050. In the most recent year the 2024 median price for 95051 was about 18% higher than 95050. However, unlike DQ News/CoreLogic which reports all recorded sales transaction, ML S only reports listings marketed on MLS, which often does not S1,400
Sl ,200
S1,000
S800
S600
S400
S200
so
2019 2020 2021 202 2 2023 2024
■ 95 0 5 0 ■ 95 0 5 1 95054
Source DQ ews
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 64 include all new construction. This is because builders, in the current market environment, often market their product in-house without using MLS, which is probably more cost effective and garners more marketing control to the builder.
Based on market feedback, historical norms, and giving more weight to the historic MLS data, supported by historic DQ News/CoreLogic data, we concluded 2024 residential prices in zip code 95051 were about 10.0% higher than zip code 95050.
Commercial Difference
We discovered that commercial land values are generally similar among commercial uses located along El Camino Real and Stevens Creek Blvd. within the 95050 and 95051 zip codes, which are the primary commercial corridors in Santa Clara. CoStar reported that the 4Q 2023 average asking rents for retail between these zip codes we re $2.43/SF/Month in 95050 vs. $3.14/SF/Month in 95051. The 4Q 2024 average asking rents for retail between these zip codes were $2.41/SF/Month in 95050 vs. $3.16SF/Month in 95051. CoStar reported that the 4Q 2023 average asking rents for office properties was $4.44/SF/Month in 95050 vs. $3.87/SF/Month in 95051. The 4Q 2024 average rents for office only between these zi p codes were approximately $4.50/SF/Month in 95050 vs. approximately $3.75/SF/Month in 95051. Based on market data, rental rates differences, historic selling price differenc es, and vacancy rate differences we concluded that overall commercial land values in 95051 rated 15% inferior to 95050.
Industrial Difference
Among industrial properties, much of the product in the 95051 zip c ode is built as, or allows for R&D and higher intensity office us es, and greater floor area ratios , rating superior to 95050. A comparison of the average rental rate per SF, as compiled by CoStar, showed that the average rental rates were equal in 95051 during 2022 ($2.33/SF in 95050 vs. $2.33/SF in 95051), about equal and relatively unchanged in 2023 ($2.27/SF in 95050 vs. $2.31/SF in 95051), and were equal in 95051 during 2024 ($2.25/SF in 95050 vs. $2.25/SF in 95051). After consideration for differences in asking rents, histor ic selling price differences, and the opinions of the market, we concluded that industrial land prices rated about equal in the 95051 zip code compared to 95050.
Median Sale s Pri ce
r r
% Change per Month % Change per Housing Type Zip Code 20-2 2023 20-4 Last 12 Months i\lonth Last 2 Years SFR,Condo & 95050 Sl, 2,500 Sl, 2,500 Sl,550,000 0. % 022% Tomihou se 95051 Sl,650,000 Sl,600,000 Sl,82 ,500 1.18% 0.45% 9505 4 S l,278,044 Sl,377,500 Sl,473,000 0.58% 0.64%
Source: Local MLS
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 65 Conclusion of Value in 95051 Zip Code
Based on the above, we concluded residential uses in zip code 95051 rated 10.0% superior, while commercial values rated 15% inferior, and industrial values rated similar. In the next table, the adjusted price per acre for each land use in th e 95051 zip code was adjusted and the appropriate weighted values are summed to produce the average value of a hypothetical 1-acre lot in the 95051 zip code:
Average Value of Hypothetical 1-Acre
Lot in the 95051 Zip Code: $5,340,000 (Rounded)
AVERAGE VALUE ESTIMATE IN 95054 ZIP CODE
We utilize the same weighted land values from zip code 95050 and apply any differences in value between the 95054 and 95050 zip codes.
Estimating Differences Between Zip Codes
For 95054 value conclusions, we applied the same methodology used above to estimate the value differences between the 95050 and 95051 zip codes.
Residential Difference
Median and average selling prices provided suppor t that the residential prices in the 95054 zip code were generally inferior when compared to the 95050 zip code. Brokers active in the market reported a range of opinions, that generally these two zip codes are not much different, but that 95054 tends to rate a little inferior. The 95054 zip code is affected by airport noise and has a higher 95051 ZIP CODE S mM.RY
2024 LAND USE VALUES & AVERI\GE VALUE PER ACRE
Land se 95050 Average x Adjustment = 950-1 Average
Very Low Density Res iden tia l $1,613,208 :I: 110.0% = $1,774,529 Low Density Residentia l $11 7,595 :I: 110.0% = $129,355 l\Iedium Dens ity Res identia l $330,583 l: 110.0% = $363,641 High Density Residentia l $396,699 :I: 110.0% = $436,369 Commercial $593,598 :I: 85.0% = $504,558
Indu stria l $2,129,762 l: 100.0% = $2,129,762
TOTAL A VERI\GE VALUE PER ACRE $5,338,214
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 66 concentration of higher-density housing units; there is less detached single-family selection and therefore fewer traditional residential neighborhoods with detached units. Recent yearly-summary median prices/SF for the 95050 and 95054 zip codes, as reported by DQ News /CoreLogic and MLS Listings, indicated the following:
The median selling prices/SF has been historically higher in the 95050 zip code. The historic DQ News/CoreLogic data indicated that the aggregate median price in 95054 was 5.0% lower in 2019 and about 2.1% lower in 2020. In 2021 the difference was about 2.7% lower. In 2022 the difference was about 15% lower. In 2023 the 95054 zip code was about 7% lower . In 2024 the 95054 zip code was about 5% lower. This data supports the opinions of market participants that 95054 generally rates inferior to 95050.
$1,400
$1,200
$1,000
$800
$600
$400
$200
so
2019 2020 2021 2022 2023 2024
■ 9 5 0 5 0 ■ 9 5 0 5 1 95054
Sour ce DQNews
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 67 The next table is the same MLS data displayed above in the previous section.
Based on market data, historical norms, the opin ions of market partic ipants, and giving more weight to the the most recent MLS data, we conc luded that residential land prices in zip code 95054 were historically lower than zip code 95050, on the order of 5%.
Commercial Difference
Most of the new commercial planned or propos ed for the 95054 zip code comprises office and hotel uses, however, there are several mixed-use projects in process, notably Related Santa Clara.
This area of Silicon Valley includes the Golden Triangle and has historically supported higher intensity uses and properties offering freeway visibility (U.S. 101 and CA-237). The addition of Levi’s Stadium and the draw of Great America theme park and the Santa Clara Convention Center create additional synergies for this zip code. The greatest concentration of Class A office is located within this zip code and more is planned. As not ed above, there are several mixed-use projects in process, which if built-out, will add both retail and new residential customers.
A comparison of the historic 3-year average rental rate (2018-2020) compiled by CoStar, revealed that the average rents between these zip codes was slightly lower in 95054, $4.33/SF vs. $4.53/SF in 95050, a difference of about 4.4% based on office and retail uses. The 4Q 2022 average rents for office only between these zip codes were lower in 95054, $4.25/SF vs. $4.75/SF in 95050. This pattern was repeated in the 4Q 2023 with the average rents for office only between these zip codes being about 7% lower in 95054, $4.13/SF vs. $4.44/SF in 95050. The 4Q 2024 average rents for office only between these zip codes being about 10% lower in 95054, approximately $4.08/SF vs. approximately $4.50/SF in 95050. The 95050 rental rate is influenced by newer retail construction which typically commands higher rental rates. Based on the data , including broker estimates and rental rate differences in each zip code, and considering that there is a greater proportion of office uses compared to retail uses, we concluded that commercial land value in 95054 rated about 10% inferior to 95050.
Median Sale s Price . . % Change per Month % Change per Housing Type Zip Code 2022 2023 2024 Last 12 Months Month Las t2 Year s SFR,Condo & 95050 SI, 2,500 Sl,4 2,500 Sl,SS0,000 0. % 0.22% Townhouse 95051 Sl,650,000 Sl ,600,000 Sl,82 ,500 1.18% 0. 5% 9505 4 Sl,2 78,044 Sl ,377,500 Sl,473,000 0.58% 0.64%
Source: Local i\ll..S
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 68 Industrial Difference
Among industrial properties, much of the product in the 95054 zip c ode is built as, or allows for R&D and higher intensity office uses, rating superior to 95050. This also allows for greater floor area ratios in 95054. Most market participants reported higher pr ices in 95054 due primarily to superior freeway access and fewer heavy-industrial uses. A comparison of the average rental rate per SF, as compiled by CoStar, showed that the average rental rates were equal in 95054 during 2022 ($2.33/SF in 95050 vs. $2.33/SF in 95054), only slightly different in 2023 ($2.27/SF in 95050 vs. $2.19/SF in 95054), and only slightly diff erent in 2024 ($2.25/SF in 95050 vs. $2.16/SF in 95054). After consideration for differences in asking rents, historic selling price differences, and the opinions of the market, we concluded that industrial land prices rated about equal to the 95054 zip code compared to 95050.
Conclusion of Value in 95054 Zip Code
Based on the above data and analysis, the adjust ed price per acre for eac h land use in the 95054 zip code was adjusted and the appropriate weig hted values are summed to produce the average value of a hypothetical 1-acre lot in the 95054 zip code:
Average Value of a Hypothetical 1-Acre
Lot in the 95054 Zip Code: $5,000,000 (Rounded)
RECONCILIATION AND OPINION OF AVERAGE VALUES
The sales comparison approach was the appropriate value approach for each land use. Total sales statistics in 2024 revealed that commercial/industrial sales accounted for about 56.86% of the total while residential sales accounted for about 43.14% of the total. This represents a greater percentage of commercial and industri al transactions by land area than in prior years. Data provided by Old Republic Title Company shows 448 single family home sales in 2024 compared to 386 single 95054 ZIP COD[ S mL<\RY
2024 LAND USE VALUES & AVIRAGI VALUE PER ACRI
Land se 95050 Average i: Adjustment = 95054 Average
Very Low Densit y Residential $1,613,208 I: 95.0% = $1,532,548 Low Density Residential $11 7,595 I: 95.0% = $111,715
l\ledium Density Residential $330,583 I: 95.0% = $314,054 High Densit y Residential $396,699 I: 95.0% = $376,864
Commercial $593,598 I: 90.0% = $534,238
Industrial $2,129,762 I: 100.0% = $2,129,762
TOTAL A VIRI\.GI VALUE PER ACRI S4,999,181
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 69 family home sales in 2023. However, the median improved residential selling price in 2024 in the city of Santa Clara had generally only increased slightly throughout the year with some major price oscillation noted in the last three quarters. This re sulted in similar residential unit values for very low-density land, low density land, and medium density land in 2024. However, high density land declined slightly from 2023. Commercial land values were unchanged in both 2023 and 2024.
Industrial land values dec lined from 2023. In 2024, the combination of higher interest rates, the 2024 elections, and expected slower economic growth has impacted the market. Additionally, more lower valued commercial and industrial land transacted in 2024 compared to 2023. All these factors resulted in only slightly lower 2024 values for th e hypothetical one-acre lots for each zip code compared to 2023.
We concluded to the following average value for each zip code on December 31, 2024, the effective date of value opinion:
Opinion of Average Value of a
Hypothetical 1-Acre Lot in the 95050 Zip Code: $5,180,000 (Rounded)
(Five Million One Hundred Eighty Thousand Dollars)
Opinion of Average Value of a
Hypothetical 1-Acre Lot in the 95051 Zip Code: $5,340,000 (Rounded)
(Five Million Three Hundred Forty Thousand Dollars)
Opinion of Average Value of a
Hypothetical 1-Acre Lot in the 95054 Zip Code: $5,000,000 (Rounded)
(Five Million Dollars)
Zip Code 2024 Average Yalue per Acre
95050 $5,180 ,000
95051 $5,340 ,000
95054 $5,000 ,000
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 70
ADDENDA
Old Republic Title Company 2024 Sales data in City of Santa Clara (on file) City of Santa Clara Supplemental Instructions for the Appraisal of the Fair Market Value of Land
Maps of the Sale Comparables
Land Sale Comparable Parcel Maps
Brokerage Reports (on file)
Qualifications of Appraiser
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 71
Attachment A
Supplemental Instructions
for the Appraisal of the Fair Market Value of Land
The following information and instructions will be used by the City when setting the land value used in the formula for determining the impact fees du e in lieu of park and recreational land dedication pursuant to Santa Clara City Code 17.35.
(Approved by Santa Clara City Council—June 7, 2016)
Background.
On July 15, 2014, Council added Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code to ensure that new residential devel opment provides adequate community and neighborhood park land for active recreational uses and/or pays a fee in-lieu of parkland dedication to mitigate the impacts of the new growth pursuant to the California Quimby Act and/or Mitigation Fee Act.
17.35.040 Formula for calculation of fee in lieu of land dedication. (a) When a fee is required to be paid in lieu of parkland dedication, the maximum amount of such fee shall be determined by the fair market value of the amount of land that would otherwise be required to be dedicated pursuant to SCCC
17.35.030, as set forth below. The date of valuation of the property for in- lieu fee purposes shall be the date that the City determines that the developer’s application for a parcel map or tentative subdivision map, or application for projects not involving a subdivision, is complete. (b) Fair Market Value.
(1) The City shall determine the fair market value of the property by using the average per acre land value for property in the City of Santa Clara, based upon a survey of land values and sale records in the City. The City Council shall set a minimum of three such average values, one for each of the three existing Zip Codes in the City (95050, 95051, 95054). The City Council may, at its discretion, set average values for additional subregions of the City. The City Council shall review the fair market values not less than annually and set the values in a Council resolution. (2) If the developer objects to this determination of fair market value, the developer may elect to have the value established by appraisal. If the de veloper chooses this option, the developer shall deposit with the City an amount sufficient to cover the cost of an appraisal, which the City shall conduct. The appraisal shall be completed prior to approval of the tentative or parcel map or, for developments not involving a subdivision, prior to the issuance of a building permit. (c) Based on the determination of fair market value set forth in subsection (b)(1) of this section, for each of the dwelling unit categories, the City Council shall set the amount of fees to be paid in lieu of parkland dedication in a Council resolution, which the Council shall review annually. (Ord. 1928 § 3, 7-15-14).
Attachment A—Supplemental Instructions for Appraisal Page 1 of 3
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 72 Guidelines for Appraiser:
a. Appraiser is to provide a “Fair Market Value” for an average acre of land (hypothetical, rectangular, useable site) for property in each of the three existing City of Santa Clara Zip Codes 95050, 95051, 95054. The opinion will conform to Uniform Standards of Professional Appraisal Practice. b. Valuation Date: December 31 of each year.
c. Location & Property Sales Data Set Boundaries: Data set will begin with sales data from within Santa Clara City limits.
d. Data Set Date Range: Use data from January 1st to December 31st of each year. Example: January 1, 2015 to December 31, 2015 for “December 31, 2015 Valuation Date.” See contingencies below. e. Property Types: Use all of the following property types: Single Family (low and very low density), High Density Residential, Medium Density Residential, Commercial, Industrial, Lots and Land. f. Contingencies for Limited Data Set of each Property Type: If there are insufficient, credible data points or sales of a particular property type, then appraiser will explore and use comparable sales from the local competitive market area, adjacent to City of Santa Clara. A fixed distance from City of Santa Clara city limit is not given, however a compelling, rational basis for the selection of the competitive market area must be given by the appraiser in the report. Preference is for closer, more recent, and comparable; discretion is given to the appraiser.
g. Sales Transactions Data not to be used: Do not use transactions if they are not an arms-length transaction, have encumbered/clouded title, are environmentally impaired site, or are more than three (3) years old. h. Inflation factors for Comparable between 1 and 3 years: An inflation factor will be computed and applied to comparable sales over one year based on reasonable and rational considerations such as sales and rental trends or other appropriate methods.
i. Sales Transactions Data that may be included: May use real estate sales transactions by the City of Santa Clara for additional neighborhood or community parkland. j. Data Values excluded: No values or set of values at the high or low end of the data set are to be excluded from consideration in the average values on the sole basis of being relatively high or low; however, a check for consistency among comparable values will be done, and a rational basis should be provided for credible comparable transactions if not used.
Attachment A—Supplemental Instructions for Appraisal Page 2 of 3
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 73 k. Research Factors to be considered for Comparable sales: The factors to be used to compare property values include, but are not limited to physical factors, economic factors, market conditions verification to parcel maps, public records, CoStar data bank. Additional factors may be used provided there is a rational basis for doing so. l. Reconciliation of value differences: The approach will be comparative, iterative, qualitative and quantitative, and will be made at the appraiser’s discretion. m. Weight to be applied to Property Types: The weighted average of each property type will be based on the percentage of land area in the sales transactions, for example, if 25% of total acreage is high density residential, then the relative weight of that property type will be 25%. (The weight will not be done by the quantity of sales of each type or the percent of value of sales of each type). n. Reporting: A draft valuation report will be generated by March 15. City will provide for a two week circulation and comment period. The valuations included the final valuation report will be used in the calculation formula for fees prepared by staff to be reviewed by Council as part of the annual City budget process and Municipal Fee Schedule adoption by June 30. Fees will be implemented on or after July 1 depending upon Quimby Act or Mitigation Fee Act provisions of the Council resolution.
Attachment A-Supplemental Instructions for Parkland Dedication In Lieu Fee Process and Schedule 2016
Attachment A—Supplemental Instructions for Appraisal Page 3 of 3
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 74
VERY LOW-DENSITY RESIDENTIAL SALE COMPARABLE LOCATION MAP
•an
0 ice
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 75
LOW-DENSITY RESIDENTIAL SALE COMPARABLE LOCATION MAP
LD-1
□Cupertino
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 76
MEDIUM-DENSITY RESIDENTIAL SALE COMPARABLE LOCATION MAP
TIOnt
der
1en
ace
•
Saratoga
MD-4
3155 El Camino Real
Santa Clar a, CA 95051
.,
-1
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 77
HIGH-DENSITY RESIDENTIAL SALE COMPARABLE LOCATION MAP
cho San Antonio
Open Space
Shoreline
4--Park
HD-4
2303 Calle del Mundo
Santa Clar a, CA 95054
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 78
COMMERCIAL SALE COMPARABLE LOCATION MAP
rners
tos
"'
°Cupertino
"'
- c:,,I
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 79
INDUSTRIAL SALE COMPARABLE LOCATION MAP
Rd
i::,
Ct'.
Ortega $!
Park ~
□
Cupertino
1-2
2175 Martin Ave
Santa Clara, CA 95050
0 i::,
> ii5
17 Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 80
COMPARABLE LAND SALE PARCEL MAPS
Very Low-Density Land Comparable Sale VLD 1
Very Low-Density Land Comparable Sale VLD 2
.la
@
I
. .
... ::,
i
HAAOI..O
I
I
t .. 1.,
,I ii ~
I
• I " - ,;,,,: - --1----·
,. I "
I
i! i'J5
I
I
ff I ~ I l i §
,, __ : __ " __ t_ 17 __ 1_~1• _
' I ' i" I ll I 5'2 I ll
, I !
p Jf I U I .l/
' I
l I
I ) - d ~R~DE
~r; : : , ~
•" • I ;-,--"-~ ____ _ _ __..._.,
~
::.•
.Jt)
CO UN J Y,
fl!-'(T ,t'l.fllj
WE'ST Y-.M JOU Tiilo\CT0 •
.3 !!
., "
JO
" ,.
II t!'
R.O.S. lUO/ J'
•> I
- -··'
-------- - -- - -
!?
"
:
C A L I F O II N 1,6
~ .i
D i ~ "'
I ~
tl l : ~ ~
----- --- I-- -~-- ---
" l l!5 - )
!D ;1 .H ]~ ::1 .:
I '
lli'IA.6C'!i•lil '21 AVENUE ___ _ ,i --
J
EXSPRESS'll'AY
Ji. .L
Ll>'M'ut:t. L !l f'ft L • /i?!l:~UOII
'..tlnl'd'I Hl ll -EeS'llfl:u:)IU. J tl '
~ : ":..!.It;~~ :.?
~
i
I
!@
I
I
I
I
I
I
l z
~
I
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 81
COMPARABLE LAND SALE PARCEL MAPS
Very Low-Density Land Comparable Sale VLD 3
Very Low-Density Land Comparable Sale VLD 4
0 FF IC [ or COU NTY AS S[SSOR -- S ANTA
-+----- McCLELLAN- - --- - --- --
C l AR A COUNTY, CAL IF OR N I A
1· • 100'
U.'flfl[H« L SIONf: - ASSCS50l'I
c-w ... ---~...,_
==:-..•i=.~m.
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 82
COMPARABLE LAND SALE PARCEL MAPS
Very Low-Density Land Comparable Sale VLD 5
~ 1~~!io
,
''£
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 83
COMPARABLE LAND SALE PARCEL MAPS
Low Density Land Comparable Sale LD 1
Low Density Land Comparable Sale LD 2
BrntWtEM
\'OL.DPC.41
C 0\INl T,
[I 104 II 1o 11
'<-/ : ~I) .....
,f_{
~' ~, l "! ~
;i
~' J . .
.
·I
w
~
~
w
►
~
1 I
V-.,0 !1 Ll' :-.>I - -...,;1 -. .... ,,,_, ___
:::::.::.•;.,_~ w
@
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 84
COMPARABLE LAND SALE PARCEL MAPS
Low Density Land Comparable Sale LD 3
Low Density Land Comparable Sale LD 4
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 85
COMPARABLE LAND SALE PARCEL MAPS
Low Density Land Comparable Sale LD 5
Low Density Land Comparable Sale LD 6
( ;;\
~
I
I
I
!
0 ~
0 GAIL - 0
r· LUSTERL£AF
'1 T~A;• 1,.1 J,14
~ • I.III Ov~~~- °:,"-llt•I
0~
~lo
0 ESPERANCA AVENUE
_,. - -· TMRD~ --- --r -,._.._--,U:,,._:,0-.10 _ _ _ -r ___ SlllEET- -7 ' . i B£1K.£HEM sueo. C
I •. O.f'0. 41 .i
@)
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 86
COMPARABLE LAND SALE PARCEL MAPS
Low Density Land Comparable Sale LD 7
~ 1~~!io
,
''£
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 87
COMPARABLE LAND SALE PARCEL MAPS
Medium Density Land Comparable Sale MD 1
Medium Density Land Comparable Sale MD 2
,,,
T O MA S
\
~
lt.O.S. 111-111-l t
11 I
TRACT NO. 703&
V.CTORlitrN PINES
BOYNTON
TRACT NO. 938 ♦ TRACT NO. iJ.♦J
1~rn1
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 88
COMPARABLE LAND SALE PARCEL MAPS
Medium Density Land Comparable Sale MD 3
Medium Density Land Comparable Sale MD 4
J LJ
I I
0 EL CAMINO
..-nATIIMTAa..tit•
1'1AClNo.105H.H&-N-40
l~DTII
1A.No.1t7$
0. RA.NCIIO c,w.u•O-UN.2 7t- W- J2
11Lu 1 a
..,_~: ''° .lJ"~·--~-
REAL
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 89
COMPARABLE LAND SALE PARCEL MAPS
High Density Land Comparable Sale HD 1
High Density Land Comparable Sale HD 2
I BENTON
, --,- JJ/a,. ,R,6-,.----
!T.~
Rt!,,,. tnJ ,
.l_
- - - --HOMESTEAD-- - =-
-~ -_ "
' '1.1 1. '1111 4 \,WIU
~J ,' .
•~,11,
/
I I
.1""- ........
J ' ·-~.
. ~.
.. ..·R-.. ~-w;Y.'f!, , d~~JP,, : ., ~~ ·"'1 ..., __
·,· ; ~r- ~ij'."', II •:" • . ;r:(o "•
r. ,','-i! fu~~ I
! . ,, ·?~-·-"""
@
C OU N l Y,
~,
P."4.442-~ -1/!I
Sl"REET
11,Z OJ /lU 6J
@)
' Im
ii§ l
~ 1----~~ - ------i
"
I
I
J
I
__ (r14. '1'. -!{R "l"'f 5TIJ[ Ql...._ ----t
ROAD
~~~-- -t-=;c.·~~~~-~··~----
C OU N l V 1 C .-, L I F ltl 11 11 I A
lli "'•""lM.: S l(l'\6 - A~,l!lo; IU
0:A- n" lio s .. nn:.-iaa .. :<
~ l!ll u,tlol ~ f' \C ....._ t«. .Jil'
~,.,. y..,..,n,o-81ft
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 90
COMPARABLE LAND SALE PARCEL MAPS
High Density Land Comparable Sale HD 3
High Density Land Comparable Sale HD 4
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 91
COMPARABLE LAND SALE PARCEL MAPS
High Density Land Comparable Sale HD 5
High Density Land Comparable Listing HD 6
\-- - CALLE - - - - - •·•· •22- a,- 2 @
\ - · ~ ~ ~.u, ·*' •
I
I
\-- -
I
~ I
Q7 \
'
11 CALLE
.I§
P . PCL 27
1 . .1, M;, NIEi
•• lU;;"lf ,.. "',1jl,I"'" : ..
"' 1,Ji'ilA;.JIEl
11 J ----•-··-
'
1Z
,,;
'l o\!! Ml.NET
~r---
i;
r
3 )(Y
OE ANZA
DE
, DTY CF li,C:,-
· ~~ .. ~-• ... •
lo' , W, ,t 1$ - M
~ 11/
...... '•
t.iJ ~
!ii~ .
,,~ ~
~ . @
t-··· IU ._( llfl
J '
Ii
:
@) I
lJ I
!
~
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 92
COMPARABLE LAND SALE PARCEL MAPS
High Density Land Comparable Listing HD 7
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 93
COMPARABLE LAND SALE PARCEL MAPS
Commercial Land Comparable Sale C 1
Commercial Land Comparable Sale C 2
0 ©
~
__ ! ___ j_ ____ _
1:2 : 11
..i.
AVf..
"
11 12 1J J.f
·,:-+ ~--:_,~__l_~~-J-2-~_:__~~- '- ~
1..1!'3 .,C IIE.i
1Z
!Ii
EL CAMINO
0 SENTI:R TRACT - LOT 2@ e - 11,-J BOO
290
<::o ... ~ ;-.. ~isr, s o i;- -- s " "" ' " C OU N TY , El CA~INO REAL
5-
. '. ,. '.
; .,o ••~·~"·
\ .. i \ ,.,, __ , ~~
- .., .;i. .
~ 4' '
\ ~ -~ . ~ _.:~-; t 13 J
,H ',:, ~ G- ~
·. H --_ _,_ ,__;;, •~
[j,Y ~~-
REAL
0 ,- • 100·
(i)
V, <11:0IO; C 'SIIJIIC: • ~21t !r.:ot
~ r10 11r 111..-.~~'"
~:1S1 11N t • tcw.. ~Jt¼.
Cflil,;,:M ~.,._ Zl»-Kllt
, .. • 100·
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 94
COMPARABLE LAND SALE PARCEL MAPS
Commercial Land Comparable Sale C 3
Commercial Land Comparable Sale C 4
@J
0 F f' IC E
0 fr I C [
't llt,(.1 J\l·' (.31!
u»m O"<IDi'"ili'ii,",( -ll l r ,1
or CO 'lJ NT 'I' A&& E~ S.OR -- S .4PiTA
Ii> ~ CO IPll1'
• ~..:.: • N.!",'.!,-1~
l'\0\i'{IW:. 'l',M) ,;: t.1 ,IT l l" Z
e
I HAt;T r-; ~ .Z ltxi
I ttr.lD1,-A 1 ~ ,..A)(ft UNI! 1,11 1
~-~j· ..
I. '
~
..1...,'. '.'..
C l ARA CO II MT 'I',
CO U Ill 1 'I'.
z
ta:
-CALI F ORNIA
- ·; ,~ ..., ·
J .,r~
l
.. 1
0 - <!
0 "'
I
>-
~
~ (l20'\
~@ a. X
t.,J
1:~ .. f. 5TIN - ft'r..lni
~-•-i-•
--· -'1. ----f-
t~ul : L a. ~t:N. - ~S:.~4
~lrN • <I • a_.i l,ptM .-.i,.
t.:-.1111:1 ,.....- 1. i T. O.... !r. ?n.
~illllt1•.UZ >-1:l.ll
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 95
COMPARABLE LAND SALE PARCEL MAPS
Commercial Land Comparable Sale C 5
Commercial Land Comparable Sale C 6
~
P.Jr,1.426-M-4 ~ J .
PCL A ~1
, UJot.c.Ne-1
i;,»,. l8&--M-J6 I ~ ;:;
. ~1 0 '
®
~ _ LAWRENCE
~~
P.w. 35J.-~-f7
~
PIL • 4.42.lu.,. ... l
""-- ' ; ~ ! J.D!i M:. filill
al
.
P.M.. Jlili1'4-J~
C Q U tJ@, _?.,.\•~-•-~--~ F 1<ri I ,i
'. - ffi
~
"' Ill
-
?.wt..1H--U-.r.
~ P,M, J79- M- 43
I~ -~- ... />O
I
I
t:l
El
,~
I
·: I
3,?2 Pit JI.J2- lt- ZJ
I
)(PRE:ssWAY ~. ---- -'"-"'-"""---- ----
~ ~~"::M~:+~z~ (,,..,,.,,A ... . ,' ... ~~
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 96
COMPARABLE LAND SALE PARCEL MAPS
Commercial Land Comparable Listing C 7
.. ' - ·
t ! i
, 1 Nfte 11 lui H ~
X ,z
~ I
" I I
•1 .~:rt"!-? • ~
6 i :°'.j, J 'a I :
a ui~f l#H ,, z ,,
,,
· - - ST.
r
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 97
COMPARABLE LAND SALE PARCEL MAPS
Industrial Land Comparable Sale I 1
Industrial Land Comparable Sale I 2
i:i rP-1' I Ir II: .... f 1 11,.iL .. I I.ii.ti ll••r.ti GL iii ■ • ■ •Lt 1 , IC•LIFll ■ 1• G II ■ - I ill I 1 1 IC.Li F 11 ■ I ■
~
I \
w
I I
' 1 r.u
:224 1 ·10]
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 98
COMPARABLE LAND SALE PARCEL MAPS
Industrial Land Comparable Sale I 3
Industrial Land Comparable Sale I 4
0 +rr I cu:
Of r t CE or C. 01J !'I T 'Y
' ,.a,
~· -"-::::!'oc~~~'z,L¼~~,!1.-'
AIRPORT INDU~AI.. PARK ~ t;:; /':;"\
147- M-2.S : ~ \_V
~ ~ "' ,.
CL ARA C Cl UN T 'I'.
/
, ¾
. a.'
[~~I
, ~85-M-36
1RACT KO.. 33-12
1,1- M- JJ
0 U.ll!'"..NCl.f'..!'1ll€-~
~ ... ---~-, ==~·~::m
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 99
COMPARABLE LAND SALE PARCEL MAPS
Industrial Land Comparable Sale I 5
Industrial Land Comparable Listing I 6
I
I "' 0
> 0
I
I
1~
O f'rlCf" 0 ~ COi.i N l'f CL A llt A t 01.1 N l T, (l AL If O II: N I A ~
ClTY C'F $AN @
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA
Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 100 FRANK E. SCHMIDT, MAI, SRA
CURRICULUM VITAE, January 2024
Valuation Consulting, Forensic and General Appraisal, Expert Testimony MAI and SRA MEMBER of the APPRAISAL INSTITUTE, No. 11933 [email protected] (510) 468-9219
San Francisco Bay Area
For more than four decades, Mr. Schmidt has been a real estate appraiser and consultant with a practice primarily in Northern California and the San Francisco Bay Area. He began his career as a residential appraiser, earning the coveted SRA designation from the Appraisal Institute in 1989, and the prestigious MAI designation in 2002. In 1995, he partnered with Wayne Prescott to form the Schmidt-Prescott Group, a commercial appraisal firm of which he was president until its dissolution in 2017.
During his career, Mr. Schmidt has appraised a wide variety of real estate including residential, commercial, industrial, raw land, and special purpose properties for various propert y rights. His experience includes litigation support and testifying as an expert witness for both plaintiffs an d defendants. Mr. Schmidt’s client list includes attorneys, municipalities, private entities, lenders, and publicly traded companies. He was engaged as a diminution in value consultant on PG&E cases involving the destruction of thirty-eight homes in the 2010 San Bruno gas-line rupture fires. Mr. Schmidt was recently retained by the City of Santa Clara as an expert to assist the city’s task force in the process of setting Parkland Dedication fees.
Mr. Schmidt has served on several professional committees throughout his career, including the International Right-of- Way Association and the Appraisal Institute. He currently serves on the Santa Clara County Assessment Appeals Board, of which he was elected Chairperson in 2017.
Expert Witness Testimony
U.S. District Court, Santa Clara County Superior Court, San Joaquin County Superior Court, San Francisco County Superior Court, Public Utility Commission of the State of CA, American Arbitration Association, Standard of Care, Eminent Domain
Professional Affiliations
Membership in: Appraisal Institute [MAI (2002) and SRA Member (1989)]
Work Experience
1/2019 to Present: Frank Schmidt & Associates, President S a n F r a n c i s c o B a y A r e a
2018 Carneghi-Nakasako, Appraiser Consultant
S a n J o s e , C A
2/95 to 12/2017: The Schmidt-Prescott Group, President San Jose, California
4/78 to 2/95: Schmidt & Associates, Inc., President San Jose and Fremont, CA
6/76 to 4/78: Senior Supervising Appraiser, Mercury Savings & Loan Cupertino, CA
1/76 to 6/76: Staff Appraiser, American Savings & Loan S a n J o s e , C A
2/75 to 12/75: Real Estate Appraiser and Consultant, B.A. Ericson Appraisal Co., San Jose, CA
Formal Education
B.S. Business Management, 1997 University of Phoenix Graduated with Honors San Jose, CA
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 1 of 5 Rev: 7/27/2023
RESOLUTION NO. 24-9383
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,
TO ESTABLISH THE AVERAGE PER-ACRE LAND VALUES, THE
PARK DEVELOPMENT COST PER CAPITA VALUE, AND THE
AVERAGE NUMBER OF PERSONS PER HOUSEHOLD IN
ORDER TO SET THE PARKLAND IN LIEU FEE SCHEDULE IN
ACCORDANCE WITH CHAPTER 17.35 (“PARK AND
RECREATIONAL LAND”) OF TITLE 17 (“DEVELOPMENT”) OF
THE CODE OF THE CITY OF SANTA CLARA
WHEREAS, the City of Santa Clara is the government entity responsible for providing public parks, recreation and open space facilities within the City of Santa Clara ; WHEREAS, the 2010-2035 General Plan includes a goal that new parks, open space and recreation be provided with new development so that existing facilities are not over -burdened; WHEREAS, the report entitled “Public Facilities Impact Fee Study” dated June 25, 2014 (“Nexus Study”), was prepared and approved by Council in June 2014; WHEREAS, on July 15, 2014, the City Council adopted Ordinance No. 1928, which added Chapter 17.35 to the City Code, and requires new residential developments to provide adequate community and neighborhood park land for active recreational uses, and/or under certain conditions to pay a fee in lieu of parkland dedication; WHEREAS, on August 27, 2019, Council approved Resolution No. 19 -8749 which included the statutory findings required pursuant to the California Quimby Act (Quimby) and Mitigation Fee Act (MFA), including the report entitled “Santa Clara Park and Recreational Facilities Impact Fee Update Study” dated April 2019 (“Nexus Study Update”) and the professional land valuation appraisal report with a valuation date of December 31, 2017, and the park improvements replacement costs with values as of 2017;
WHEREAS, SCCC 17.35.030 provides the formula for determining a developer’s parkland dedication acreage requirement as follows: the average density for the specific dwelling unit category (single family/multi-family); multiplied by the parkland dedication standard; divided by one thousand (1,000) population;
Attachment 4
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 2 of 5 Rev: 7/27/2023
WHEREAS, the methodology for calculating fees in-lieu of parkland dedication is based on the average cost to purchase lands for parks in Santa Clara, the average cost per capita to develop the land into a useable park facility, and the cost to administer the program; WHEREAS, the City desires to update the average density standard for single family and multi - family dwelling units as used to determine a developer’s parkland dedication requirement with the most recently available Federal census data and, in addition, update the average per -acre land values and park development costs as used in setting the park in-lieu fee; and WHEREAS, the City has surveyed land values and sales records, and has conducted a professional appraisal with a valuation date of December 31, 2023, to determine the fair market value of property in the City and made available to the public for review and comment the appraisal report as posted on the City website on October 1, 2024 .
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. Land Valuation Appraisal.
A. An independent real estate-appraisal firm, Frank Schmidt & Associates, was retained to provide a “Fair Market Value” opinion (valuation date of December 31, 2023 ) conforming to Uniform Standards of Professional Appraisal Practice and using the City’s Supplemental Instructions for an average acre of land (hypothetical, rectangular, useable site) for property in each of the three existing City of Santa Clara Zip Codes 95050, 95051, 95054.
The data set included all property types: Single Family (low and very low density), High Density Residential, Medium Density Residential, Commercial/Retail, Industrial, Lots and Land.
Excluded were transactions considered not “arms -length”, having encumbered or clouded title, environmentally impaired sites, or more than three (3) years old. An inflation factor was computed and applied to comparable sales over one year old based on reasonable and rational considerations such as sales and rental trends or other appropriate methods. The weighted average of each property type was based on the percentage of land area in the sales transactions.
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 3 of 5 Rev: 7/27/2023
B. Based on the findings of the appraisal report, the City Council hereby sets the average per acre land value for each ZIP Code as of December 31, 2023 , as: $5.455 million per acre in 95050; $5.650 million per acre in 95051; and $5.255 million per acre in 95054. If a developer objects to this determination of fair market value, the developer may elect to have the value established by appraisal, in conformance with SCCC 17.35.040(b)(2).
2. Park Improvement Cost.
A. The cost to construct the park improvements (landscape, furnishings, buildings, etc.) is based on an average cost per capita for the City’s existing park system improvements and recovers no more than 100% of the actual cost to develop new park assets and features to serve new residents at the same standard as existing residents. A cost analysis was conducted , including a review of recent/actual City park improvement project costs and a review of increases/decreases in the State of California, Department of General Services Construction Cost Index reported by the Real Estate Services Division of the Bay Area. In accordance with Resolution No. 23-9220, annual changes (increases/decreases) in the park improvement value used in calculation of In-Lieu Fees shall be indexed to changes in CCCI for the previous calendar year as reported by the Real Estate Services Division for the Bay Area, not to exceed a change of more than 10%.
B. The 2023 Santa Clara average park improvement value per capita is $3,818. From 2022 to 2023, construction costs have increased by $9.4 % according to the State of California, Department of General Services Construction Cost Index reported by the Real Estate Services Division for the Bay Area, such that the park improvement value of $3, 818 per capita would be $4,177 per capita as of January 1, 2024. The Council hereby sets for use in the Park in-Lieu Fee calculations a park improvement value of $4,177 per capita (20223 base value plus 10% for cost escalation recovery) for use in the FY 2024/2025 fees. //
//
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 4 of 5 Rev: 7/27/2023
3. Average Density.
A. On September 12, 2024, the U.S. Census Bureau released the 2023 American Community Survey (ACS) data. The ACS contains two relevant data points in determining average density by dwelling unit—total population by units in structure (Table B25033) and units in structure (Table B25024). The average density of single-family dwelling units was derived by dividing the total population of residents in single family units by the total amount of single -family dwelling units in the City. Similarly, the average density of multi -family dwelling units was derived by dividing the total population of residents in multi -family units by the total amount of multi-family units in the City.
B. In calculation of parkland dedication or fees due in- lieu, the types of dwelling units and average density factors (2023 American Community Survey) shall be as follows : (1) Single-Family Dwelling equals 2.84 persons per household; and (2) Multi -Family Dwelling equals 1.92 persons per household.
//
//
//
//
//
//
//
//
//
//
//
//
//
4. Implementation Schedu le. For development projects subject to the Quimby Act, the proposed fees will become effective immediately. For development projects subject to the Mitigation Fee Act, the proposed fees will become effective 60 days after the effective date of this resolution .
5. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A SPECIAL MEETING THEREOF HELD ON THE 29rH DAY OF OCTOBER, 2024, BY THE FOLLOWING VOTE:
AYES : COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
Attachments incorporated by reference:
Becker, Chahal, Hardy, Jain, Park, and Watanabe
None
Mayor Gillmor
None
ATTEST:~()
-""N"""'o"""R_A_ l~M~E'--"N"""T""'E'-=L-", M~ M- ~~--
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
1. Santa Clara Land Valuation Appraisal Report 12-31-2023
2. Fee Calculation Tables A, B, C
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Rev: 7/27/2023