DATE: October 11, 2016
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: County Purchase of Land at Kings Canyon/Temperance Avenues
RECOMMENDED ACTION(S):
TITLE
1. Authorize and approve the County’s purchase of raw land at the Northwest corner of Kings Canyon and Temperance, Fresno, CA (APN’s 313-28-020T, 313-28-018T, 313-28-063T, 313-28-062T and 313-28-041T) (the Property) from the State of California - California Department of Transportation(Seller), for the sum of $150,000, and authorize the County Administrative Officer, or his designee, to:
a. Approve and execute the form of Offer to Purchase and Grant Deed as shown on Attachment 1, subject to prior, final review and approval thereof as to legal form by County Counsel, and as applicable, as to accounting form by the County Auditor-Controller/Treasurer-Tax Collector.
2. Authorize staff to undertake additional due diligence investigations, as needed, including any further environmental studies or appraisals of the Property, as deemed necessary or appropriate by staff, in connection with the County's purchase of the Property.
3. Authorize and direct the Director of Internal Services/Chief Information Officer, or his designee, to take any action as he deems necessary or appropriate, all of which shall be consistent with the Offer to Purchase, and the foregoing Board approvals and actions, to:
a. Carry out and consummate the County's purchase of the Property from Seller; deliver the County's acceptance of Seller's Grant Deed; and, obtain title insurance in favor of the County for the Property in the amount of the purchase price of the Property;
b. Review, approve, execute and/or deliver any agreements, documents, certificates, notices, and instruments, and any amendments to any of the foregoing (subject to prior review and approval thereof as to legal form by County Counsel, and, if applicable, as to accounting form by the County Auditor-Controller/Treasurer-Tax Collector), and to take any other actions to initiate, carry out, and finalize the County’s purchase of the Property from the Seller; and
c. Perform any other obligations, or exercise any other rights, of County under the Offer to Purchase to finalize the County's purchase of the Property.
4. Adopt Budget Resolution re-budgeting appropriations from FY 2015-16 budget to the FY 2016-17 budget for the County Buildings Org 0131 in the amount of $155,000 (4/5 vote).
5. Adopt Resolution of Public Use and Acceptance declaring the Property will be used for a public purpose upon acceptance from the California Department of Transportation.
REPORT
Approval of Recommended Actions 1 through 3 will authorize the acquisition of the Property at Kings Canyon and Temperance, Fresno, CA. The purchase price of the Property would be $150,000, with an additional allocation of $5,000 for miscellaneous acquisition costs.
Approval of Recommended Action 4 will re-budget encumbered appropriations from the prior year to FY 2016-17 for County Buildings Org 0131 in the amount of $155,000 for the purchase of the Property and the County’s share of closing cost.
Approval of Recommended Action 5 will declare a public purpose upon acceptance of property being acquired from the California Department of Transportation and direct the Director of Internal Services/Chief Information Officer to submit the Resolution to CalTrans.
ALTERNATIVE ACTION(S):
There is no alternative action. Non-approval of the recommended action, however, would result in a lost opportunity to acquire a property that would satisfy Departmental needs at a below market purchase price.
FISCAL IMPACT:
There is no additional Net County Cost associated with the recommended actions. Approval of the fourth recommended action would approve the elimination ($155,000) of prior year appropriations and encumbrances from FY 2015-16 in the Interest and Misc. Expenditures Org 2540 and be re-appropriated in the FY 2016-17 budget of the County Buildings Org 1031 in the amount of $ 155,000 to provide funding for the purchase of the property at Kings Canyon and Temperance ($150,000) and $5,000 for estimated additional related costs (title insurance policy, recording fees, etc.).
DISCUSSION:
Acquisition of the Property will enable the Fleet Services Division of the Department of Internal Services (ISD) to store excess equipment and provide a future site for location of County facilities.
The Offer to Purchase and Resolution declaring a public purpose will be submitted by the Director of Internal Services/Chief Information Officer to the California Department of Transportation (DOT) for consideration at the DOT’s December meeting. No escrow will be utilized for this purchase/sale transaction, which will be finalized once the Director’s Grant Deed has been executed by the DOT Director. Upon approval of the recommended actions, ISD will undertake due diligence consisting of obtaining preliminary title reports and a Phase 1 environmental study. If these due diligence activities result in negative declarations regarding the Property, staff will return to your Board for direction.
Your Board gave negotiation instructions regarding purchase of the Property to its designated Real Property Negotiators in Closed Session on June 21, 2016. This proposed transaction was brought before the Facilities Planning Committee meeting on January 15, 2016, with the recommendation to your Board for approval.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with the Clerk - Offer to Purchase
On file with the Clerk - Budget Resolution
On file with the Clerk - Resolution of Public Purpose
CAO ANALYST:
John Hays