Livermore Valley Joint Unified School District

Property Acquisition – Montevina II

October 2, 2018

Background
Livermore Valley Joint Unified School District (LVJUSD) staff meet on a regular basis with leaders of the
Planning Department for the City of Livermore to review approved housing applications, future planning
considerations, and how City growth will impact school enrollment. Generally, smaller developments do
not create significant issues or have large impact on District schools, as individual school enrollment
numbers fluctuate on a yearly basis even without the addition of new neighborhood housing. However,
when development plans include large numbers of additional housing units, steps are taken to ensure
that student educational needs are met in both the short-term and the long-term. A topic of ongoing
concern has been the northwestern part of town – sometimes referred to as the Isabel Planning Area.
There is agreement between the City and our District that significant population growth in this area
would be best served by having a neighborhood school. Currently, the elementary schools closest to the
area – Rancho Las Positas and Lawrence – are 2.7 and 3.3 miles away, respectively. Additionally, travel
from the Isabel Area to either of these schools would require crossing the Interstate 580 freeway. As a
result of the distance that would have to be travelled, a concern about not having the “feel” of a
neighborhood school, and in creating safe routes to school for pedestrians and bicycles, City staff has
recommended that LVJUSD look for land that could be used as a site for a school in the future, which our
District has done.

Photo 1 shows the location of the elementary, K-8, and middle school sites currently owned by our
District. Interstate 580, North Livermore Avenue, and Railroad are shown with red lines for orientation
purposes. The Isabel Planning Area is indicated by the black rectangle.

I-580

N. Livermore Ave.

Railroad Ave.

Photo 1 – School Sites and Isabel Planning Area

Photo 2 shows a closer view of the Isabel Planning Area. Las Positas College is in the northeastern part,
and the land being purchased by our District is indicated by the circle. The open areas in the middle of
the photo are potential residential sites that, when completed, could result in a significant number of
new students in the area.

Photo 2 – Isabel Planning Area

Status
As a result of the closure of the Livermore Valley Charter School in 2017, land adjacent to the buildings
that housed the school has become available. The District entered into negotiations with the owners of
that land in early 2018.

Following weeks of negotiations, our District was able to come to an agreement for the purchase of the
12.4 acres of land known as Montevina II. Along with the 12.4 acres of land, are two buildings with a
total square footage of 10,200. These parcels have been zoned for educational and small business use.
At one point, Montevina II was intended to be the second phase of a business park. The two buildings
included in this purchase were part of the 16-building facility used by Tri-Valley Learning Corporation for
the Livermore Valley Charter School. The other fourteen buildings were known as Montevina I, and are
not part of this purchase agreement.

Photo 3 shows the 12.4 acres of land and the two buildings that comprise of Montevina II.
Improvements were made to the land about three years ago which included a parking lot and a cross-
through road.
Photo 3 – Montevina II

Purchase Agreement
Working with real estate agents from CBRE, our District was able to determine an approximate value for
the property, based upon comparable sales. Comparable buildings that have been sold in the past two
years in the surrounding area ranged from $225 dollars per square foot to $400 per square foot, with an
average of approximately $285. This created a baseline value of $2,907,000 for the two buildings. Land
of a similar nature had comparable sales of $17 per square foot to $30 per square foot, with an average
of $21 per square foot. The 12.4 acres equates to just over 540,000 square feet, which is a value of
$11,382,000.

Area being Purchased Comparable Sales Approximate Value

Land 12.44 acres $915,000/acre $11,382,000
Buildings 10,200 square feet $285/square foot $2,907,000

Total $14,289,000

In addition, the improvement on the land of the parking lot, which had a cost of over $700,000, could
also be figured into the value. With these figures in mind, our District was able to negotiate a final sale
price of $12,600,000. As part of the purchase agreement, our District was granted 75 days to perform its
due diligence, during which time our District could void the purchase agreement at no cost.

Due Diligence
To ensure that our District is purchasing land and buildings that are free of potentially costly issues, staff
engaged with a number of local partners to conduct appropriate inspections and testing. Those
inspections and analyses include:

In March 2018, Newmark Knight Frank completed an appraisal of the offices and land.

In June 2018, Terraphase Inc. completed an assessment in accordance with Title V California Code of
Regulations (CCR) Section 14012 Standards for School Site Selection. Assessments and analysis
include:
 Proximity to high-voltage powerlines (Section 14010(c)).
 Proximity to railroad easements within 1,500 feet of the Site (Section 14010(d)).
  Road and freeway safety and noise (Section 14010(e)).
 Proximity to earthquake faults or fault traces (Section 14010(f)).
 Flood or dam inundation, proximity of Site (Section 14010(g)).
 Proximity of Site to an above-ground water or fuel storage tanks or easements of above-
ground or underground pipelines within 1,500 feet that can pose a safety hazard (i.e.,
carries hazardous substances, acutely hazardous materials, or hazardous wastes) (Section
14010(h)).
 Risk of liquefaction or landslides as mapped by the California Geological Survey (Section
14010(i)).
 Shape of the Site for accommodating proposed Site layout, if available (Section 14010(j)).
 Site’s accessibility from arterial roads (Section 14010(k)).
 Site’s location on a major arterial street with heavy traffic pattern (Section 14010(l)).
 Compatibility of proposed use with existing or proposed zoning of surrounding properties
(Section 14010(m)).
 Convenience of the Site for public services, including fire protection, police protection,
public transit, and trash disposal (Section 14010(p)).
 Easement on or adjacent to the Site (Section 14010(r)).
 Potential for cost and complication related to: (a) a distance of utilities to Sites, (b) Site
preparation, if any; (c) long-term landscaping or maintenance costs; or (d) existence of
wildlife habitat on a protected or endangered species list (Section 14010(s)).
 Proximity of the Site to a hazardous waste disposal site, solid waste disposal site, or a
hazardous substance release site, (Section 14010(t)).
 Proximity of the Site to existing or potential airport runways (Section 14011(k)).
 Hazardous Air Emission facilities within ¼ mile of the Site (Education Code 14011(i)).

In June 2018, Terraphase Inc. completed a Phase I Environmental Site Assessment (ESA) in
accordance with the requirements of California Code of Regulations (CCR) Title 22 Section 69104.
Assessments and analysis include:
 Review and evaluation of past and current uses for the Site for indications of the
manufacture, generation, use, storage and/or disposal of hazardous substances including,
but not limited to: agriculture use; debris or stockpiles; fill material; electrical transformers,
oil filled electrical equipment, or hydraulic systems; government use or ownership; grading
activities; illegal drug manufacturing; lead-based paint application; mines; natural occurring
hazardous materials; petroleum deposits or use; railroad use or easements; residential use;
surface drainage pathways; termiticide application; and utility easements.
 Evaluation of potential soil and/or ground water contamination at the Site resulting from
current and historical Site land use activities and nearby off-site operations.
 Review of regulatory records and coordination of an environmental database search, as
described in ASTM E1527-13;
 Conducting of an environmental lien and activity and use limitation search;
 Contact with appropriate regulatory agencies, including the local fire department, the local
building department, and as applicable, the local government entities that have jurisdiction
over hazardous waste management, permitting, and site investigations;
 Interviews with individuals identified as knowledgeable of the Site history;
 Observation and visual assessment of adjoining properties and general land use from Site
and/or public roadways.

In July 2018, Terraphase, Inc. performed a Limited Phase II Investigation. The investigation included
three tasks:
 Pre-field activities,
 Soil sampling and laboratory analysis, and
  Data analysis and report preparation. During the Phase II Investigation, soil samples were
assessed for the presence or absence of organochlorine pesticides (OCPs), arsenic, and
copper from past agriculture use. The samples were identified during site reconnaissance.

In August 2018, Silicon Valley Building Inspections, Inc. completed a thorough building inspection
and reported on 3266 and 3278 Constitution Drive, the two buildings that are part of the sale in
addition to the land. Their analysis included:
 Property inspection and due diligence report for 3266 and 3278 Constitution Drive.
 Building and Site overview, summary, site and accessibility, interior access, interior
improvements, summary of major systems, site plan and photographs.

In August 2018, Kier & Wright Civil Engineers completed an American Land Title Association (ALTA)
survey of the Site.

In September 2018, Terraphase Inc. completed a Pipeline Risk Assessment Report.

Conclusions: The Due Diligence Phase provided the necessary assurance to our District that the property
being purchased had no significant concerns or risks.

Next Steps/Potential Uses

12.44 acres of land: The land that has been purchased is intended to provide our District with a suitable
location for a future school. It has not yet been definitively determined as to when that need may arise,
so the District has been in contact with the Livermore Area Parks and Recreation Department, as well as
the City of Livermore, about possible partnerships so that the land may be used to benefit the citizens of
Livermore in the near term. One potential use would be to create a park/athletic complex similar to
Cayetano Park, which is located further east on North Canyon Parkway. An aerial photo of the park,
which occupies a similar sized footprint, is shown below. Cayetano Park is approximately 11.5 acres and
includes a dog park, athletic fields, a playground, a basketball court, and other amenities.

Cayetano Park
The Buildings: Two buildings were included in the purchase. One is 3,600 square feet and the other is
6,600 square feet. Both are in good condition and could be used for a number of purposes. The most
pressing need is for a facility that will be able to house the personnel responsible for the Bond Program
projects that are underway. Bond personnel are currently located in several locations throughout our
District, and having one place for them all to be together would lead to greater efficiency and provide
the space needed as Bond Program projects ramp up. The need for Bond Program personnel would be
approximately 2,500 square feet. Secondly, the Tri-Valley Regional Occupational Program (TVROP) Main
Office is currently located at the Mocho Site. Though the TVROP team has made this facility work for
them, the Montevina II facility is in a much closer proximity to the Dublin and Pleasanton students being
served by TVROP, as well as the Las Positas College and the Middle College Program. A move would
provide them with additional space they need and also be more convenient for travel. A third option
being considered would be to create a space to be used for the purposes of professional development.
Currently, the District Board Room, school Multi-Purpose rooms, school gyms, and other spaces are
used for training purposes, when available. Having a space dedicated for trainings such as CPR and first
aid, as well as for other professional development needs, would be ideal. Below is a photo of the two
buildings.

3266 and 3278 Constitution Drive

The buildings are in good condition and can be used for the purposes listed above without the need for
significant renovation. Additionally, the movement of programs from the current location to this new
location will free existing space for other critical District needs that have been identified.

Conclusion
Our District is very pleased to have been able to complete this purchase. It provides solid insurance that
plans for future growth in the northwestern part of the City can be completed without the fear of having
a major impact on existing District schools. This will help City planners to be confident that the
educational needs of the community can be met with whatever direction they choose to go with the
Isabel Plan. While we offer open enrollment and many families take advantage of this opportunity, our
community has its preference for neighborhood schools, and the potential to build a school in the Isabel
Plan area will meet those expectations. In the meantime, our District is hopeful that a partnership with
LARPD can provide additional recreation spaces that are also in need in Livermore. LVJUSD staff view
this as an extremely successful move toward meeting the needs of our community into the future.