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HomeMy WebLinkAboutStaff Report 4.B 04/02/2018DATE: April 2, 2018 Agenda Item #4.B TO: Honorable Mor and Members of the City Council through City Manager FROM: Dant. o SCE — Director of Public Works & Utilities Jason Beatty, P.E. — Senior Civil Engineer SUBJECT: Introduction of an Ordinance Approving Purchase and Sale Agreement Regarding Real Property Commonly Known as Lot 33 Industrial Avenue and Authorizing the City Manager to Execute the Agreement and All Other Documents Necessary to Complete the Purchase and Sale RECOMMENDATION It is recommended that the City Council introduce the attached Ordinance Introduction of an Ordinance Approving Purchase and Sale Agreement Regarding Real Property Commonly Known as Lot 33 Industrial Avenue and Authorizing the City Manager to Execute the Agreement and All Other Documents Necessary to Complete the Purchase and Sale. BACKGROUND On August 7, 2017, the City Council adopted Resolution 2017-126 N.C.S. authorizing the City Manager to execute a funding agreement with the Sonoma County Water Agency (SCWA) for the Petaluma River Flood Management Denman Reach Phase 4 project. The scope of the agreement includes acquisition of the subject property, a 5.47 -acre vacant parcel fronting on Industrial Avenue and the creation of a flood detention basin or flood terracing on the property. The agreement was made possible by efforts of Sonoma County Supervisor David Rabbit to redistribute an existing California Department of Water Resources (DWR) project grant for work in Sonoma Valley. Because the originally proposed project become infeasible, the Supervisor arranged to have SCWA amend the original project scope for the DWR grant to become the Denman Reach Phase 4 project and bring the funding to Petaluma. An appraisal of the property was conducted resulting in an opinion of value of $1,000,000. As authorized by the City Council in December, 2017, a conditional offer to purchase the property for $1,000,000 has been presented, and the offer has been accepted by the property owners. Once Council authorization is received, funds will be placed in an escrow account for the purchase and the City will be reimbursed for the cost of the purchase by SCWA under the executed agreement. DISCUSSION The final executed agreement between the SCWA and the City of Petaluma outlines a project funding amount of $2;634,624 with $1,754,322 coming from the DWR Prop 1E Grant and $880,302 from the Agency Zone 2A District budget. Under the agreement, the City will contribute $29,165 of in-kind services as a fund match, perform project management, and provide perpetual maintenance of the newly acquired property and the constructed flood control measures. The land purchase and improvements are a logical continuation of the flood plain improvements completed in phases 1, 2, and 3. Environmental review and preliminary design has begun on the project, with construction planned in the summer of 2019. FINANCIAL IMPACTS The project is currently in the FY 17/18 CIP budget, and is primarily funded by the State DWR and the SCWA Zone 2A. This action was anticipated in the current CIP budget and has no unexpected impacts. ATTACHMENTS 1. Ordinance with Exhibit A 2. Location Map 2 Attachment 1 EFFECTIVE DATE ORDINANCE NO. N.C.S. OF ORDINANCE Introduced by Seconded by ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING PURCHASE AND SALE AGREEMENT BETWEEN WILLIAM R. NELSON, DARREL S. NELSON, WILLIAM E. NELSON, MARTHA SUE DAVIS, ROBERT L. NELSON, AND HAROLD SILEN, THE TRUSTEE OF THE SILEN FAMILY TRUST, AND THE CITY OF PETALUMA REGARDING REAL PROPERTY COMMONLY KNOWN AS LOT 33 INDUSTRIAL AVENUE, (APN 007-412-033) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ALL OTHER DOCUMENTS NECESSARY TO COMPLETE THE PURCHASE AND SALE WHEREAS, Section 46 of the Charter of the City of Petaluma requires that actions for the acquisition, sale, or lease of real property be taken by Ordinance except for such actions involving sums less than $3,000 or actions pursuant to general state law; and WHEREAS, pursuant to Resolution 2017-126 N.C.S., the City of Petaluma (City) entered into a funding agreement with the Sonoma County Water Agency (SCWA) for the Petaluma River Flood Management Denman Reach Phase 4 Project, which included funding for the acquisition of certain property commonly known as Lot 33 Industrial Avenue, County of Sonoma Assessor's Parcel No. 007-412-033 (the Property); and WHEREAS, the funding agreement with the Sonoma County Water Agency provides funding in the amount of $2,634,624, for the Petaluma River Flood Management Denman Reach Phase 4 project, which includes acquisition of the Property; and WHEREAS, the City has negotiated a purchase and sale agreement between the City and William R. Nelson, Darrel S. Nelson, William E. Nelson, Martha Sue Davis, Robert L. Nelson, and Harold Silen, Trustee of the Silen Family Trust, owners of the property, in the amount of $1,000,000, a copy of which is attached as Exhibit A and incorporated herein by reference; and WHEREAS, this action was found in compliance with the California Environmental Quality Act pursuant to Title 14, Chapter 3 of the California Code of Regulations (CEQA Guidelines), through the completion and filing of a Notice of Determination on March 1, 2012, for the acquisition portion of this project with a Mitigated Negative Declaration. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PETALUMA AS FOLLOWS: Section 1: The City Council approves the purchase and sale agreement (Agreement) between the City of Petaluma and William R. Nelson, Darrel S. Nelson, William E. Nelson, Martha Sue Davis, Robert L. Nelson, and Harold Silen, Trustees of the Silen Family Trust, in the amount of $1,000,000, a copy of which is attached as Exhibit A and incorporated herein as reference. Section 2: The City Manager is authorized and directed to execute the Agreement and all other documents reasonably necessary to complete the purchase and sale, according to the terms of the Agreement. Section 3: If any section, subsection, sentence, clause, phrase or work of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 4: This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 5: The City Clerk is hereby directed to publish or post this Ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. rd r Attachment 2 PETALUMA RIVER FLOOD MANAGEMENT DENMAN REACH PHASE 4 PROPERTY ACQUISITION LOCATION MAP t f t t` `t LOT 33 INDUSTRIAL AVE oporye. s O p� NT'9jq, v \ .? Mc r 1f f f r r i Date: MARCH 6, 2018 City of Petaluma ALS? • PROJECT SITE w EPublic Works and Utilities 5 Department 5