HomeMy WebLinkAboutAG RPTS 2008 0702 RDA REG—� ESTABLISHED
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IaA11FORN�a4P Resolution No. 2008 -196
rr OF
MOORPARK REDEVELOPMENT AGENCY
REGULAR MEETING AGENDA
WEDNESDAY, JULY 2, 2008
7:00 P.M.
Moorpark Community Center 799 Moorpark Avenue
1. CALL TO ORDER:
2. ROLL CALL:
3. PUBLIC COMMENT:
4. REORDERING OF, AND ADDITIONS TO, THE AGENDA:
5. PRESENTATION /ACTION /DISCUSSION:
A. Consider Resolution Adopting an Operating and Capital Improvements Budget
for the City of Moorpark Redevelopment Agency for Fiscal Year 2008/09.
(continued from June, 11, 2008) Staff Recommendation: Adopt Resolution
No. 2008- . ROLL CALL VOTE REQUIRED (Staff: Steven Kueny)
B. Consider Lease Aqreement Between the Redevelopment Aaencv of the Citv
of Moorpark and the United States Post Office. Staff Recommendation:
Approve the lease for a new Post Office, subject to City Council approval of
the required Health and Safety Code, Section 33433 Summary Report and to
final language approval by the Executive Director and Agency Counsel.
(Staff: Hugh Riley)
6. CONSENT CALENDAR: (ROLL CALL VOTE REQUIRED)
A. Consider Minutes 'of Regular Meeting of June 18, 2008. Staff
Recommendation: Approve the minutes.
Redevelopment Agency Agenda
July 2, 2008
Page 2
7. CLOSED SESSION:
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Subdivision (b) of Section
54956.9 of the Government Code: (Number of cases to be discussed - 4)
B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the
Government Code: (Number of cases to be discussed - 4)
8. ADJOURNMENT:
All writings and documents provided to the majority of the Agency regarding all open- session agenda items are
available for public inspection at the City Hall public counter located at 799 Moorpark Avenue during regular
business hours. The agenda packet for all regular Redevelopment Agency meetings is also available on the City's
website at www.ci.mooruark.ca.us.
Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is
a Public Hearing or a Presentation /Action/ Discussion item. Speakers who wish to address the Agency concerning
a Public Hearing or Presentations /Action /Discussion item must do so during the Public Hearing or
Presentations /Action/ Discussion portion of the Agenda for that item. Speaker cards must be received by the City
Clerk for Public Comment prior to the beginning of the Public Comments portion of the meeting; for a
Presentation /Action /Discussion item, prior to the Chair's call for speaker cards for each Presentation /Action/
Discussion agenda item; and for a Public Hearing item, prior to the opening of each Public Hearing, or beginning
of public testimony for a continued hearing. A limitation of three minutes shall be imposed upon each Public
Comment and Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be imposed
upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu of speaking orally for
open Public Hearings and Presentation /Action /Discussion items. Any questions concerning any agenda item may
be directed to the City Clerk's office at 517 -6223.
In compliance with the Americans with Disabilities Act, if you need special assistance to review an agenda or
participate in this meeting, including auxiliary aids or services, please contact the City Clerk's Division at 1805)
517 -6223. Upon request, the agenda can be made available in appropriate alternative formats to persons with a
disability. Any request for disability- related modification or accommodation should be made at least48 hours prior
to the scheduled meeting to assist the City staff in assuring reasonable arrangements can be made to provide
accessibility to the meeting (28 CFR 35.102- 35.104; ADA Title II).
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) ss
CITY OF MOORPARK )
AFFIDAVIT OF POSTING
I, Maureen Benson, declare as follows:
That I am the Assistant City Clerk of the City of Moorpark and that a notice for a Regular
Meeting of the Moorpark Redevelopment Agency to be held Wednesday, July 2, 2008, at
7:00 p.m. in the Council Chambers of the Moorpark Community Center, 799 Moorpark
Avenue, Moorpark, California, was posted on June 27, 2008, at a conspicuous place at the
Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on June 27, 2008.
Maureen Benson, Assistant City Clerk
F. M! A.
CITY OF MOORPARK, CALIFORNIA
RedeveloPment Agency Meeting
of
7-A -Agoy
ACTtOlq tY1
MOORPARK REDEVELOPMENT AGENCY-
AGENDA REPORT' -�--
TO: Honorable Board of Directors
FROM: Steven Kueny, Executive Director n
BY: Irmina Lumbad, Finance /Accounting Manager
DATE: June 20, 2008 (MRA Meeting of July 2, 2008)
SUBJECT: Consider Resolution Adopting an Operating and Capital
Improvements Budget for the City of Moorpark Redevelopment
Agency for the Fiscal Year 2008/2009.
DISCUSSION
On June 4, 2008 the City Manager /Executive Director presented to the Board of
Directors his recommended Operating and Capital Improvements Budget for the Fiscal
Year 2008/2009. The Agency Board of Directors held a public meeting on the budget
during a study session on June 11, 2008. The Board of Directors had made some
changes to the recommended Agency Budget.
The Board directed staff to increase the total Agency appropriation to $23,664,600 from
$23,357,850. The net increase of $306,750 is primarily from the following changes in
personnel costs and capital improvement projects:
• $224,300 increase to fund fifty percent (50 %) of Community Development
personnel costs for the Deputy City Manager, Senior Management Analyst and
Code Compliance Technician; whose primary duties have been shifted to benefit
the project area;
• $32,000 increase to fund fifty percent (50 %) of Finance Department personnel
cost for the Secretary I as this position will be shared with the Agency;
• $ 7,400 additional expense to account for one and a half percent (1.5 %) cost of
living adjustment;
• $1,200 savings in group insurance with the elimination of the assumed ten
percent (10 %) rate increase in medical health premiums;
• $31,250 additional cost to finance fifty percent (50 %) of Lassen Walkway Project;
• $13,000 increase to fund the installation of swings at Magnolia Park.
Honorable Board of Directors
July 2, 2008
Page 2
Staff recommends that the Board of Directors adopt the attached resolution. The final
budget document with the referenced changes has been provided to the City Council
under separate cover as well as made available to the public on the City's Home Page,
at City Hall and the Moorpark Library.
STAFF RECOMMENDATION (Roll Call Vote)
Adopt Resolution No. 2008 -
Attachment: Resolution No. 2008-
RESOLUTION NO. 2008-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF MOORPARK, CALIFORNIA, ADOPTING THE
OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE
MOORPARK REDEVELOPMENT AGENCY FOR THE FISCAL
YEAR 2008/2009
WHEREAS, on June 4, 2008 the City Manager /Executive Director's
Recommended Budget for Fiscal Year 2008/2009 was submitted to the City
Council and Agency Board of Directors for its review and consideration; and
WHEREAS, the Board of Directors has provided the opportunity for public
comment at a public meeting held on June 11, 2008, and conducted detailed
review of expenditure proposals; and
WHEREAS, as the result of the reviews and analysis, expenditure
proposals and revenue projections have been modified as needed.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY
OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Operating and Capital Improvements Budget for Fiscal
Year 2008/2009 (beginning July 1, 2008) for the City of Moorpark
Redevelopment Agency containing operating and capital expenditures and
anticipated revenues as identified in Exhibit "A" to this resolution, attached hereto
and incorporated herein, shall be adopted as the City of Moorpark
Redevelopment Agency's Operating and Capital Improvements Budget for Fiscal
Year 2008/2009.
SECTION 2. The Executive Director is authorized to amend the capital
improvement budget for the Fiscal Year 2008/2009 at the conclusion of the Fiscal
Year 2007/2008 when a final accounting of project costs during the Fiscal Year
2007/2008 is complete and continuing appropriations are determined, as long as
the total project appropriation authorized by the Board of Directors is not
exceeded.
SECTION 3. The Executive Director is authorized to approve
appropriation transfers within departments and within individual funds as required
to provide efficient and economical services, as long as the total department
appropriation and fund appropriation authorized by the Board of Directors is not
exceeded.
Resolution No. 2008 -
Page 2
SECTION 4. Except as otherwise provided in this resolution,
amendments to appropriations in the Fiscal Year 2008/2009 Operating and
Capital Improvements Budget shall require Board action by resolution.
SECTION 5. The Executive Director is authorized to make such
emergency appropriations as may be necessary to address emergency needs of
the Agency, provided that the appropriation is presented to the Board of Directors
at its next regular meeting for ratification.
SECTION 6. Administrative and planning expenditures, including direct
salaries, indirect overhead charges, and other similar costs, are necessary for
the production, improvement, and preservation of low- and moderate - income
housing.
SECTION 7. The Agency Secretary shall certify to the adoption of this
resolution and shall cause a certified resolution to be filed in the book of original
Resolutions.
PASSED AND ADOPTED this 2nd day of July, 2008.
Patrick Hunter, Chair
ATTEST:
Deborah S. Traffenstedt, Agency Secretary
Attachment: Exhibit "A"
EXHIBIT
SEE EXHIBIT A
FOR ITEM 9.A.
ON CITY COUNCIL AGENDA
FOR JULY 212008
DRAFT COPY OF FISCAL YEAR 2008/09
OPERATING AND CAPITAL IMPROVEMENTS
BUDGET
Resolution No. 2008 -
Page 3
Exhibit A
Operating and Capital Improvements Budget
For the Moorpark Redevelopment Agency
Fiscal Year 2008/2009
Provided Separately
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MOORPARK REDEVELOPMENT A E �� G-a�
AGENDA REPORT �.w e�M� 4W Q�.d�
a4194•
To: Honorable Agency Board of Directors
From: Hugh R. Riley, Assistant Executive
Date: June 23, 2008 (Agency Meeting of 712/08)
Subject: Consider Lease Agreement Between the Redevelopment
Agency of the City of Moorpark and the United States Post
Office
BACKGROUND AND DISCUSSION
In April 2006 City Staff began working with representatives from the United
States Postal Services to develop a new, Main Post Office in Downtown
Moorpark. Based on the Redevelopment Agency's October 12, 2006 offer to
provide a site along West High Street for the new facility, Post Office Officials of
the Pacific Facilities Service Office sought and obtained funding authorization for
the facility.
The formal site selection process began in January 2008 and on April 30, 2008
the City received a Summary Report of the Postal Service Community Meeting
held on February 12. The Summary Report of the site evaluation process was
submitted to the City Council on June 18. On April 30, 2008 the Agency was
advised that its offer of a leased site had been accepted and preliminary design
planning began in May 2008.
Following a public hearing to be held on July 2, the City Council must approve
the required Health and Safety Code, Section 33433 Summary Report, outlining
the Agency's cost to acquire the property and terms of the lease, as required by
California Community Redevelopment Law for the lease to be finalized. The
Report is provided as Attachment 1.
An approximately 1 -acre site would be leased to the Post Office for a period of 99
years for $1.00 per year. The lease would continue for as long as the Postal
Service maintains the site as its main Moorpark Post Office including retail
Agency Chair and Board Members
June 23, 2008
Page 2
services. Upon termination of the lease, the building and property would revert to
the Agency /City's ownership. The proposed lease is provided as Attachment 2.
DESIGN CONSIDERATIONS:
During the City Council Meeting of June 18, there were a number of questions
regarding design features proposed for the new building. These questions and
the Post Office response are provided below:
1. It was requested to have a block wall along three sides of the
truck/employee parking area.
• The postal criteria for fencing is a 6 -foot high chain link fence. A solid wall
poses a security threat to the Postal Service as it blocks the carrier
parking lot from view. Postal vehicles, frequently with mail on board, are
parked in this lot over night. The Postal Service has agreed to install a 6-
foot high tubular steel, picket fence along High Street as an attractive
alternative to the chain link fence. This can be enhanced with landscaping
and will be less susceptible to graffiti vandalism. Staff will request that
similar fencing be utilized around the entire truck/employee parking area
and along the south side of the building and public parking area including
intermittent decorative pilasters that match the masonry veneer on the
building.
2. The City Council requested a snorkel lane.
• The Postal Design Standards no longer permits snorkel lanes (drive -up
drop boxes). Staff has asked Post Office representatives to reconsider this
standard and include drop boxes in the median of the public parking area.
3. There were general concerns raised about the size of the new post office
and the fact that there were only two service counters.
• The size of the post office is determined by the revenue and volume
generated by a facility. Based on the number for Moorpark, the facility
planning guidelines require that plan 50B be followed. This is a 5,200
square foot facility. The facility can be expanded in the future if the
volume increases.
Once the ground lease has been finalized, design -bid proposals will be obtained
and a contractor will be retained to complete construction specifications,
drawings, and bid documents, and obtain construction bids. During that process
there will be additional opportunity to modify design features within the
parameters of the project budget. Local postal staff and officials of the Pacific
Facilities Service Office concur with the Council's comments regarding the size
)>,I(),0
Agency Chair and Board Members
June 23, 2008
Page 3
and customer service features for the facility. Staff will continue to support their
efforts to ensure that the new post office provides the maximum efficiency and
convenience for Moorpark Postal customers.
FISCAL IMPACT
According to the Health and Safety Code, Section 33433 Report, the Agency's
current investment in the property to be leased is $180,000. The maximum
return from the lease for its full term is $99.00.
STAFF RECOMMENDATION
Approve lease for new Post Office subject to City Council approval of the
required Health and Safety Code, Section 33433 Summary Report and to final
language approval by the Executive Director and Agency Counsel.
Attachments:
1. Section 33433 Summary Report
2. Lease Agreement
,q
ATTACHMENT I
URBAN
FUTURES
INCORPORATED Finance • Redevelopment • Implementation • Planning • Bond Administration • Continuing Disclosure
INFORMATION SUMMARY
FOR PROPOSED
GROUND LEASE WITH
UNITED STATES POSTAL SERVICE
1133433 REPORT"
This summary was prepared for the Moorpark Redevelopment Agency (the "Agency') pursuant
to Section 33433 of the California Community Redevelopment Law (Part 1 of Division 24 of the
Health and Safety Code, the "CCRL') with respect to the proposed Ground Lease ("Lease "}
between the Agency and the United States Postal Service (the "USPS'l. The Lease pertains to
the development of a public post office building of approximately 6,000 square feet of gross
building area (the "Project') on an approximately 43,250 square foot parcel (i.e., approximately
one acre of land) located near the southwest corner of Moorpark Avenue and High Street (the
"Site') within the Moorpark Redevelopment Project Area.
1. Cost of Project to Agency:
The Agency's net costs to enable the Project to be developed are estimated at
approximately $109,000. This conclusion is based upon the following data:
a. Land Acquisition Cost: The Site is a part of a larger land holding owned by
the Agency. In order to determine the Site's land acquisition cost, it was
necessary to evaluate the land related costs associated with the Agency's larger
land holding and then prorate such costs to the Site. In that regard, on August
17, 1993, the Agency acquired approximately 4.7 acres of land (approximately
204,732 square feet)(the "Acquisition Property") from the Ventura County
Transportation Commission (" VCTC') for $800,000. Agency records reflect that
the Agency incurred $39,140.93 of acquisition - related costs. Further, during
2007, the Agency incurred $50,000 of additional costs to rectify certain property
boundary discrepancies with the VCTC with respect to adding approximately
14,000 square feet of additional area to the Acquisition Property and incurred
$11,600 of additional costs for the preparation of an environmental assessment.
As a result, the Acquisition Property currently consists , of an area of
approximately 218,732 square feet or approximately 5.02 acres. Therefore, in
total, the Agency has incurred $900,740.93 of costs (or approximately $4.12 per
square foot) related to purchasing the Acquisition Property. The Site consists of
approximately 20% of the Acquisition Property; therefore, on a prorated basis
the Agency has incurred approximately $180,148.19 (rounded to $180,000) of
costs reasonably related to acquiring the Site.
b. Clearance Costs: The Site was vacant when acquired. Therefore, the
Agency has not incurred any clearance costs related specifically to the Site.
Crestview Corporate Center - 3111 N. Tustin Street, Suite 230, Orange, CA 92865 -1753
Tel: (714) 283 -9334 www.urbanfuturesinc.com Fax: (714) 283 -9319
0 0. S,4f-9
Page 2
C. Relocation Costs: The Site was vacant when acquired. Therefore, the
Agency has not incurred any relocation costs related specifically to the Site.
d. Improvement Costs: The Agency has not incurred any improvement costs
related specifically to the Site.
e. Finance Costs: None
f. Other Costs: None
g. Offsetting Revenue: The sum of the above costs (i.e., items "a" through
"f'� is $180,000, which represents the Agency's current total investment in the
Site. These costs are offset by approximately $71,000 of lease revenue and
prorated rental income received by Agency during the term of its ownership of
the Acquisition Property, as further described herein.
With respect to the rental income, Agency staff has estimated that the Agency
has received roughly $223,000 of rental income attributable the Acquisition
Property over the last nine years (i.e., since 1999). Unfortunately, the Agency
no longer has records that will confirm the amount of rental income it received
from the Acquisition Property during the Agency's first five years of ownership.
However, upon obtaining title to the Acquisition Property the rent role shows that
the annualized rental income from the then existing tenants was $52,320.
Therefore, in light of the lack of records and the knowledge that tenants actually
occupied the Acquisition Property, Urban Futures, Inc. believes it is.appropriate
to provide a conservative estimate of the rental income the Agency received
during its initial five year period of ownership of the Acquisition Property. With
the foregoing in mind and in order to be extraordinarily conservative, Urban
Futures, Inc. believes that an estimate of annual rental income received prior to
1999 should be based on not more than 50% of the Acquisition Property's initial
annualized rental role. This conservative estimate should fairly allow for vagaries
that may have occurred with respect to tenant changes and /or short-term
vacancies. Using this formula, Urban Futures, Inc. believes that it is reasonable
to project that the Agency received at least $26,000 per year in rental income
during the first five years of the Agency's ownership of the Acquisition Property
for a total of approximately $130,000 (i.e., $52,320 x .50 = $26,160, rounded to
$26,000 x 5 = $130,000). Therefore, it is reasonable to project that throughout
the term of the Agency's ownership of the Acquisition Property, the Agency
received at least $353,000 (i.e., $223,000 + $130,000 = $353,000) of rental
income from the Acquisition Property. On a prorated basis (i.e., using 20% as
noted above), $70,600 may be reasonably attributed to the Site as rental
income. In addition, pursuant to the Lease the USPS will pay the Agency $99
(i.e., $1 per year) to lease the Site. Therefore, the sum of the above noted
sources (i.e., $99 + $70,600) is $70,699 (rounded to $71,000).
Based on the above, Urban Futures, Inc. believes that the cost of the Project to
the Agency can reasonably be estimated at $109,000. This number is derived by
subtracting the estimated offsetting revenue from the estimated cost of acquiring
the Site (i.e., $180,000 less $71,000 = $109,000).
LISPS Ground Lease 33433 Report v6- 13- 08.doc yy
Page 3
2. Estimated value of interest to be conveyed or leased, determined at highest
and best use permitted by the Redevelopment Plan:
In order to determine the value of the interest to be leased, Urban Futures, Inc. has
considered recent title transfer transactions and a recent related real estate appraisal.
The initial step involved a current survey of title transfer transactions (i.e., land sales) to
determine if there had been any recent sales of vacant commercial parcels within a
reasonable vicinity of the Site. Unfortunately, as of the date of this report, there were
not any reported sales in recent months. Consequently, Urban Futures, Inc. was unable
to use data from recent title transfer transactions in its analysis of the estimated value
of the interest to be leased. Therefore, Urban Futures, Inc. has relied upon an appraisal
of a portion of the Acquisition Property that was obtained by the Agency earlier this
calendar year. In that regard, staff engaged the services of Dale Donerkiel, SRPA, SRA
and California Certified General Real Estate Appraiser ("Appraiser') as an expert, third
party real estate appraiser. On February 4, 2008, the Appraiser completed a real estate
appraisal on an approximately 2.36 -acre (approximately 108,142 square feet) portion of
the Acquisition Property, from which a parcel would be created for a nearby commercial
development (the "Appraised Property'. The appraisal is on file with the Agency.
Based upon their value analysis, it was the Appraiser's opinion that the estimated value
of the Appraised Property at its highest and best use permitted by the Redevelopment
Plan (i.e., private commercial development) equals a total of $1,514,000 or $14.00 on a
square foot basis.
It is important to state that in determining this value, the Appraiser assumed that the
Appraised Property was vacant. The Appraiser also assumed that the Appraised
Property was free from environmental contamination. With respect to this issue, during
a 2007 interview with the VCTC's immediate past Executive Director (i.e., Ms. Ginger
Gherardl) assured Urban Futures, Inc. that the appropriate steps were taken during
1993 to ensure the Acquisition Property was free from environmental contamination.
The interview with Ms. Gherardi occurred in relation to the preparation of a Summary
Report (i.e., "33433 Report'j prepared by Urban Futures, Inc. with respect to a
commercial development proposed by Aszkenazy Development, Inc. for the Appraised
Property. Further, staff has since obtained appropriate third -party confirmation of this
assurance.
Therefore, by using the Appraiser's above noted per square foot value of $14.00, the
imputed value of the Site is $609,840 (rounded to $610,000). Based on prevalent real
estate practices, it is typical that triple net ground leases generate between 8 and 12
percent of the effected land's value in lease payments on an annuallzed basis. The rate
that would be applicable In any given case would, among other factors, be a function of
land -use parameters, market conditions, property location and access, parcel size and
configuration, and soil and topographical conditions. Given that the Site is not located
on a busy thoroughfare and in consideration of current market conditions, Urban
Futures, Inc. believes that 8% of land value would be an appropriate factor to use in
determining the fair market value of the lease rate applicable to the Site. In the instant
case that would mean that the fair market value lease rate for the Site, if it were to be
developed as a private commercial development, would be $48,800 during the first year
of the lease.
LISPS Ground Lease 33433 Report A- 13- 08.doc
s_
Page 4
As explained in greater detail below, it is the opinion of Urban Futures, Inc. that the use
limitations established by the City together with the condition, covenants and
development costs required by the Lease for the Project have effectively set the fair
reuse lease value of the Site at the Lease rate.
3. Estimated value of the interest to be conveyed or leased, determined at the
use and with the conditions, covenants and development costs required by
the sale or lease:
The following characteristics of the Site and/or the Project have contributed to the
opinion of the fair reuse lease value of the Site:
1. The Site has been designated by the City as the relocation site for the Moorpark
Post Office, meaning that the Site may not be considered for a private
commercial development and may only be used for the development of a USPS
facility;
2. The Site will be developed by the USPS, at its sole expense, wherein the services
provided to the City as a whole and the redevelopment project area in particular
will be enhanced and assist local economic development efforts;
3. Pursuant to the Lease, the USPS has acknowledged and agreed to allow public
use of the new post office parking lot for City of Moorpark sponsored public
events on weekends;
4. The USPS will develop the new post office in a fashion that is compatible with
the Moorpark Civic Center Improvements;
5. The USPS has confirmed that they currently only have a budget for the
development of the replacement post office and do not have any fiscal resources
to pay a lease payment greater than the rate stated in the Lease;
6. The improvements to be developed by the USPS on the Site will further the City's
goal of consolidating government services within close proximity of City Hall; and
7. The improvements will revert to the Agency upon expiration or termination of the
lease.
As a result, Urban Futures, Inc. has concluded that the reuse value of the Site, given the
use limitations established by the City together with the conditions, covenants and
development costs required by the lease (all as noted above), is equivalent to the Lease
rate.
4. The purchase price or sum of the lease payments which the lessor will be
required to pay during the term of the Lease:
Pursuant to the Lease, the USPS will lease the Site for $1 per year for up to 99 years.
5. Explanation of the reason (if applicable) why the sales price or lease rate paid
to the Agency may be less than market value of the property as determined at
its highest and best use:
The Site's use limitations established by the City with respect to the relocation of the
Moorpark Post Office, meaning that the Site may not be considered for a private
USPS Ground Lease 33433 Report v6- 13- 08.doc
Page 5
commercial development and may pDly be used for the development of a USPS facility,
has the direct economic affect of equating the Lease rate to the amount of rent that the
USPS is able to pay. As noted above, the USPS is currently only able to pay $1 per year
for up to 99 years. They are, however, able to fully finance the direct costs associated
with developing the new post office. Further the development of the new post office will
significantly enhance the ability of the USPS to provide services within the City as a
whole and to the redevelopment project area in particular. It will also enhance local
economic development efforts and further the City's goal of consolidating government
services within close proximity of City Hall. In addition, the USPS facilities will revert to
the Agency upon expiration or termination of the lease. Therefore, Urban Futures, Inc.
has concluded that the reuse lease value of the Site, given the use limitations
established by the City together with the conditions, covenants and development costs
required by the lease (all as noted above), is equivalent to the Lease rate.
6. Explanation of why the sale or Lease of the property will assist in the
elimination of blight:
This Lease is part of a project designed in part to eliminate blight in the Moorpark
Redevelopment Project Area. The greater portion of the Site (i.e., the Acquisition
Property) has been used for non - operating railroad related purposes for many years in
the past. In recent times it has been used for multi- tenant small -scale commercial
purposes. The current improvements on the Acquisition Property are both economically
obsolete and exhibit conditions of physical degradation. Therefore, the Project will
result in eliminating blight that exists in a portion of the Moorpark Redevelopment
Project Area, specifically on the Acquisition Property, and will cause new economic
development activity, including job creation.
7. Economic benefits of the Project:
The current Moorpark Post Office is housed within a leased facility located at 215 West
Los Angeles Avenue, near the northwest corner of West Los Angeles and Moorpark
Avenues. This facility is undersized and lacks the design features and amenities typically
offered by the USPS in jurisdictions that are comparable in size and population to
Moorpark. In other words, the current post office facilities are both inadequate in terms
of meeting current demands and limit the capabilities of the USPS to adequately meet
additional growth induced service requirements within their Moorpark service area. This
circumstance, if not corrected, could place a damper on future economic development
opportunities that the City could realize. As a result, Agency and City representatives
have for a significant period of time been working diligently to convince the USPS to
develop a new and modern post office within the City of Moorpark and more particularly
in close proximity to the City's Civic Center. In that regard, the City's overall plan for
consolidating public services in the vicinity of City Hall has included the development of
a new post office on the Site. Until recently the USPS has not had the resources to
develop a new Moorpark Post Office. However, recently the USPS has advised staff that
they were able to obtain budget resources that will allow them to finance the cost of
developing the Project. Unfortunately, their current resources do not include the ability
to pay more than the Lease rate. Although the designation of the Site as the relocation
site for the USPS affects the fair reuse value of the Site, the benefits that accrue to the
City as a whole and the redevelopment project In particular far outweigh this economic
LISPS Ground Lease 33433 Report v6- 13- 08.doc
Page 6
phenomenon. As mentioned above, the proposed Lease will facilitate the development
of a public post office building of approximately 6,000 square feet of gross building area.
It is significant to also state that the USPS has indicated that they will invest
approximately $1.375 million in the local economy to develop their new facility. They
also have a workforce of 33.
8. Certification:
I certify that this report complies with the repotting requirements of Section 33433 of
the CCRL. Further, I do not have a present or perspective interest in the Site, the
Project or the parties to the Lease. My engagement to prepare this report was not
contingent upon developing or reporting predetermined results. The statements of fact
contained herein and the substance of this report are based on public records, data
provided by the Agency, reports provided by its consultants or as otherwise noted
herein. This report reflects my personal, unbiased professional analyses, opinions and
conclusions. If any of the underlying assumptions related to the Lease change after the
date provided below, then the undersigned reserves the professional privilege to modify
the contents and /or conclusions of this report.
Respectful llylu b m itted,
URBAN FLVtURES, INC.
N H`. bURET'fjanaging Principal
Dated: June 13, 2008
USPS Ground Lease 33433 Report v6- 13- 08.doc
, UNITEDSTLITES
POSTAL SERVICE_
Facility Name /Location
MOORPARK - MAIN OFFICE SITE (055142 -004)
PARK. CA 93021
ATTACHMENT 2 Ground Lease
County:
Project: F24163
This Lease made and entered into by and between THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
hereinafter called the Landlord, and the United States Postal Service, hereinafter called the Postal Service:
In consideration of the mutual promises set forth and for other good and valuable consideration, the sufficiency of which
is hereby acknowledged, the parties covenant and agree as follows:
1. The Landlord hereby leases to the Postal Service and the Postal Service leases from the Landlord the following
premises, hereinafter legally described in paragraph 7, in accordance with the terms and conditions described herein
and contained in the'General Conditions to USPS Ground Lease,' attached hereto and made a part hereof:
Total Site Area: 1.00 Acres
2. RENTAL: The Postal Service will pay the Landlord an annual rental of: $1.00 (One and 00/100 Dollars) payable in
advance on the effective date of the lease term.
Rent checks shall be payable to:
CITY OF MOORPARK
799 MOORPARK AVENUE
MOORPARK, CA 93021 -1136
unless the Contracting Officer is notified, in writing by Landlord, of any change in payee or address at least sixty (60)
days before the effective date of the change.
3. TO HAVE AND TO HOLD the said premises with their appurtenances for the following term:
FIXED TERM: The term becomes effective August 01, 2008 with an expiration date of July 31, 2107, for a total of 99
Years.
February 2004 1 r
UNI TED STIJTES
POSTAL SERVICE_
4. RENEWAL OPTIONS: None
5. TERMINATION:
Ground Lease
The Postal Service may terminate this Lease at any time by giving 180 days written notice to the Landlord.
6. OTHER PROVISIONS: The following additional provisions, modifications, riders, layouts, and /or forms were agreed
upon prior to execution and made a part hereof:
Mortgagee's Agreement.
Exhibit A
7. LEGAL DESCRIPTION:
See Exhibit A.
February 2004 2
JUUNITED STATES
POSTAL SERVICE,.
1. CHOICE OF LAW
This Lease shall be governed by federal law.
2. RECORDING
Not Required
3. MORTGAGEE'S AGREEMENT
General Conditions to USPS Ground Lease
If there is now or will be a mortgage on the property which is or will be recorded prior to the recording of the Lease, the Landlord must notify the
contracting officer of the facts concerning such mortgage and, unless in his sole discretion the contracting officer waives the requirement, the Landlord
must furnish a Mortgagee's Agreement, which will consent to this Lease and shall provide that, in the event of foreclosure, mortgagee, successors,
and assigns shall cause such foreclosures to be subject to the Lease.
4. ASSIGNMENTS
a. The terms and provisions of this Lease and the conditions herein are binding on the Landlord and the Postal Service, and all heirs, executors,
administrators, successors, and assigns.
b. If this contract provides for payments aggregating $10,000 or more, claims for monies due or to become due from the Postal Service under it may
be assigned to a bank, trust company, or other financing institution, including any federal lending agency, and may thereafter be further assigned and
reassigned to any such institution. Any assignment or reassignment must cover all amounts payable and must not be made to more than one party,
except that assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in financing this contract.
No assignment or reassignment will be recognized as valid and binding upon the Postal Service unless a written notice of the assignment or
reassignment, together with a true copy of the instrument of assignment, is filed with:
1. the contracting officer; and
2. the surety or sureties upon any bond.
c. Assignment of this contract or any interest in this contract other than in accordance with the provisions of this clause will be grounds for termination
of the contract for default at the option of the Postal Service.
d. Nothing contained herein shall be construed so as to prohibit transfer of ownership of the demised premises, provided that:
1. such transfer is subject to this Lease agreement;
2. both the original Landlord and the successor Landlord execute the standard Certificate of Transferof Title to Leased Property and Lease
Assignment and Assumption form to be provided by the USPS Contracting Officer.
S. APPLICABLE CODES AND ORDINANCES
The Landlord, as part of the rental consideration; agrees to comply with all codes and ordinances applicable to the ownership and operation of the
parcel on which the premises are situated and to obtain all necessary permits and related items at no cost to the Postal Service. When the Postal
Service or one of its contractors (other than the Landlord) is performing work at the premises, the Postal Service will be responsible for obtaining all
necessary and applicable permits, related items, and associated costs.
8. CLAIMS AND DISPUTES
a. This contract is subject to the Contract Disputes Act of 1978 (41 U.S.C. 601 -613) ( "the Act ").
b. Except as provided in the Act, all disputes arising under or relating to this contract must be resolved under this clause.
c. "Claim," as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the
payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to this contract.
However, a written demand or written assertion by the Landlord seeking the payment of money exceeding $100,000 is not a claim under the Act until
certified as required by subparagraph d below. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a
groundgc (Oct 2006) GC-1 „ • r , 7
UNITEDST13TES General Conditions to USPS Ground Lease
POSTAL SERVICE-
claim under the Act. The submission may be converted to a claim under the Act by complying with the submission and certification requirements of
this clause, if it is disputed either as to liability or amount or is not acted upon in a reasonable time.
d. A claim by the Landlord must be made in writing and submitted to the contracting officer for a written decision. A claim by the Postal Service
against the Landlord is subject to a written decision by the contracting officer. For Landlord claims exceeding $100,000, the Landlord must submit
with the c laim the following certification:
"I certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of my knowledge and belief, that
the amount requested accurately reflects the contract adjustment for which the Landlord believes the Postal Service is liable, and that I am
duly authorized to certify the claim on behalf of the Landlord."
The certification may be executed by any person duly authorized to bind the Landlord with respect to the claim.
e. For Landlord claims of $100,000 or less, the contracting officer must, if requested in writing by the Landlord, render a decision within 60 days of the
request. For Landlord- certified claims over $100,000, the contracting officer must, within 60 days, decide the claim or notify the Landlord of the date
by which the decision will be made.
f. The contracting officer's decision is final unless the Landlord appeals or files a suit as provided in the Act.
g. When a claim is submitted by or against a Landlord, the parties by mutual consent may agree to use an alternative dispute resolution (ADR)
process to assist in resolving the claim. A certification as described in subparagraph d of this clause must be provided for any claim, regardless of
dollar amount, before ADR is used.
h. The Postal Service will pay interest on the amount found due and unpaid from:
1. the date the contracting officer receives the claim (properly certified if required); or
2. the date payment otherwise would be due, if that date is later, until the date of payment.
i. Simple interest on claims will be paid at a rate determined in accordance with the Act.
j. The Landlord must• proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action
arising under the contract, and comply with any decision of the contracting officer.
9. HAZARDOUS/TOXIC CONDITIONS CLAUSE
"Asbestos containing building material" (ACBM) means any material containing more than 1 % asbestos as determined by using the method specified
in 40 CFR Part 763, Subpart E, Appendix E. "Friable asbestos material" means any ACBM that when dry, can be crumbled, pulverized, or reduced to
powder by hand pressure.
The Landlord must identify and disclose the presence, location and quantity of all ACBM or presumed asbestos containing material (PACM) which
includes all thermal system insulation, sprayed on and troweled on surfacing materials, and asphalt and vinyl flooring material unless such material
has been tested and identified as non -ACBM. The Landlord agrees to disclose any information concerning the presence of lead -based paint, radon
above 4 pCi /L, and lead piping or solder in drinking water systems in the building, to the Postal Service.
Sites cannot have any contaminated soil or water above applicable federal, state or local action levels or undisclosed underground storage tanks.
Unless due to the act or negligence of the Postal Service, if contaminated soil, water, underground storage tanks or piping orfriable asbestos material
or any other hazardous/toxic materials or substances as defined by applicable Local, State or Federal law are subsequently identified on the
premises, the Landlord agrees to remove such materials or substances upon notification by the U. S. Postal Service at Landlord's sole cost and
expense in accordance with EPA and /or State guidelines. If ACBM is subsequently found which reasonably should have been determined, identified,
or known to the Landlord, the Landlord agrees to conduct, at Landlord's sole expense, an asbestos survey pursuant to the standards of the Asbestos
Hazard Emergency Response Act ( AHERA), establish an Operations and Maintenance (O &M) plan for asbestos management, and provide the survey
report and plan to the Postal Service. If the Landlord fails to remove any friable asbestos or hazardous/toxic materials or substances, or fails to
complete an AHERA asbestos survey and O &M plan, the Postal Service has the right to accomplish the work and deduct the cost plus administrative
costs, from future rent payments or recover these costs from Landlord by other means, or may, at its sole option, cancel this Lease. In addition, the
Postal Service may proportionally abate the rent for any period the premises, or any part thereof, are determined by the Postal Service to have been
rendered unavailable to it by reason of such condition.
The Landlord hereby indemnifies and holds harmless the Postal Service and its officers, agents, representatives, and employees from all claims, loss,
damage, actions, causes of action, expense, fees and /or liability resulting from, brought for, or on account of any violation of this clause.
The remainder of this clause applies if this Lease is for premises not previously occupied by the Postal Service.
By execution of this Lease the Landlord certifies:
a. the property and improvements are free of all contamination from petroleum products or any hazardous/toxic or unhealthy materials or
substances, including friable asbestos materials, as defined by applicable State or Federal law;
groundgc (Oct 2006) cc -2
r'.s,S
UNITED STA TES
POSTAL SERVICE.
General Conditions to USPS Ground Lease
b. there are no undisclosed underground storage tanks or associated piping, ACBM, radon, lead -based paint, or lead piping or solder in drinking
water systems, on the property; and
c. it has not received, nor is it aware of, any notification or other communication from any governmental or regulatory entity concerning any
environmental condition, or violation or potential violation of any local, state, or federal environmental statute or regulation, existing at or adjacent to
the property.
10. FACILITIES NONDISCRIMINATION
a. By executing this Lease, the Landlord certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of
its establishments, and that it does not and will not permit its employees to perform services at any location under its control where segregated
facilities are maintained.
b. The Landlord will insert this clause in all contracts or purchase orders under this Lease unless exempted by Secretary of Labor rules, regulations,
or orders issued under Executive Order 11246.
11. CLAUSES REQUIRED TO IMPLEMENT POLICIES, STATUTES, OR EXECUTIVE ORDERS
The following clauses are incorporated in this Lease by reference. The text of incorporated terms may be found in the Postal Service's Supplying
Principles and Practices, accessible atwww.usps.com /publications.
Clause 1 -5, Gratuities or Gifts (March 2006)
Clause 1 -6, Contingent Fees (March 2006)
Clause 9 -7, Equal Opportunity (March 2006)'
Clause 9 -13, Affirmative Action for Handicapped Workers (March 2006)Z
Clause 9 -14, Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era (March 2006)3
Clause B -25, Advertising of Contract Awards (March 2006)
Note: For purposes of applying the above standard clauses to this Lease, the terms "supplier," "contractor," and "lessor' are synonymous with
"Landlord," and the term "contract" is synonymous with "Lease."
' For leases aggregating payments of $10,000 or more.
2 For leases aggregating payments of $10,000 or more.
3 For leases aggregating payments of $25,000 or more.
groundgc (Oct 2006) GC-3
k ��
OTUNITED STATES Lease
POSTAL SERVICE-
EXECUTED BY LANDLORD this day of
GOVERNMENTAL ENTITY
By executing this Lease, Landlord certifies that Landlord is not a USPS employee or contract employee (or an immediate family member of either), or
a business organization substantially owned or controlled by a USPS employee or contract employee (or an immediate family member of either).
Name of Governmental Entity: REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
By:
Print Name & Title Signature
Print Name & Title Signature
Print Name & Title Signature
Landlord's Address:
Zip +4 -,
Landlord's Telephone Number(s):
Federal Tax Identification No.:
Witness Witness
a. Where the Landlord is a governmental entity or other municipal entity, the Lease must be accompanied by documentary evidence affirming the
authority of the signatory(ies) to execute the Lease to bind the governmental entity or municipal entity for which he (or they) purports to act.
b. Any notice to Landlord provided under this Lease or under any law or regulation must be in writing and submitted to Landlord at the address
specified above, or at an address that Landlord has otherwise appropriately directed in writing. Any notice to the Postal Service provided under
this Lease or under any law or regulation must be in writing and submitted to "Contracting Officer, U.S. Postal Service" at the address specified
below, or at an address that the Postal Service has otherwise directed in writing.
ACCEPTANCE BY THE POSTAL SERVICE
Date:
Contracting Officer Signature of Contracting Officer
Address of Contracting Officer
LEASE (June 2003)
UNITED STATES
POSTAL SERVICE.
Addendum
Facilitv Name /Location
County:
MOORPARK - MAIN OFFICE SITE (055142 -004)
Project: F24163
MOORPARK, CA 93021 -9998
8. IMPROVEMENTS:
It is mutually understood that the Postal Service intends to construct a building on the Demised Premises
according to its own specificaitons as to size, configuration and location. Said construction is at the
sole expense of the Postal Service, excepting infrastructure, which is to be determined between the parties
The Postal Service shall have the right to make alterations, attach fixtures and erect additions,
structures or signs in or upon the Premises hereby leased. The building, all improvements incident thereto,
and all fixtures, machinery, and equipment added to the building, shall remain the personal property of
the Postal Service during the term of this Lease. Upon expiration or termination of this Lease,
the building shall revert to the City. The Postal Service retains the right to remove any fixtures,
machinery, or equipment that are personal and /or proprietary to the Postal Service. Any fixtures,
machinery, or equipment that remains on the Premises after the expiration or termination date becomes the
property of the Landlord.
9. USE OF PREMISES:
The Premises shall be used for the purpose of providing mail services to the general public including postal
boxes, retail services, and sortation of mail for delivery operations.
10. ACTIVITIES ON ADJACENT PROPERTIES:
The parties acknowledge that the Landlord owns the properties adjacent to the Premises and on occasion
may have weekend events related to the City of Moorpark's public activities. Landlord agrees to notify and
coordinate the events and /or activities with the Postal Service to ensure the activities do no not impact
postal operations.
February 2004 1 - ; K _3
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MINUTES OF THE REDEVELOPMENT AGENCY
Moorpark, California June 18, 2008
A Regular Meeting of the Redevelopment Agency of the City of Moorpark was held on
June 18, 2008, in the Community Center of said City located at 799 Moorpark Avenue,
Moorpark, California.
1. CALL TO ORDER:
Chair Hunter called the meeting to order at 7:20 p.m.
2. ROLL CALL:
Present: Agency Members Mikos, Parvin, Van Dam, and Chair
Hunter.
Absent: Agency Member Millhouse.
Staff Present: Steven Kueny, Executive Director; Joseph Montes, General
Counsel; Hugh Riley, Assistant Executive Director; David
Moe, Redevelopment Manager; and Deborah Traffenstedt,
Agency Secretary.
3. PUBLIC COMMENT:
None.
4. REORDERING OF, AND ADDITIONS TO, THE AGENDA:
None.
5. CONSENT CALENDAR: (ROLL CALL VOTE REQUIRED)
MOTION: Agency Member Mikos moved and Agency Member Parvin seconded a
motion to approve the Consent Calendar. The motion carried by roll call vote 4 -0,
Agency Member Millhouse absent.
A. Consider Minutes of Regular Meeting of June 4, 2008. Staff
Recommendation: Approve the minutes.
B. Consider Authorization of Recordation of Notice of Completion for the
Demolition Projects at 765 Walnut Street a Portion of 782 Moorpark
Avenue, and 81 Charles Street. Staff Recommendation: Authorize the
Agency Secretary to file the Notice of Completion, and release the project
bonds consistent with the contract provisions.
P,
Minutes of the Redevelopment Agency
Moorpark California Page 2 June 18, 2008
C. Consider Resolution Adopting Loan Agreement between the City of
Moorpark and the Moorpark Redevelopment Agency. Staff
Recommendation: Adopt Resolution No. 2008 -193. ROLL CALL VOTE
REQUIRED
D. Consider Award of Bid and Project Approval for the Demolition of 1293
and 1331 Walnut Canyon Road and Resolution Amending the Fiscal Year
2007/08 Budget to Fund the Project. Staff Recommendation: 1) Approve
the removal of 1293 and 1331 Walnut Canyon Road; 2) Award bid to
V.A.C. Environmental and Demolition and authorize the execution of the
Agreement, subject to final language approval of the Executive Director
and Agency Counsel; and 3) Adopt Resolution No. 2008 -194. ROLL
CALL VOTE REQUIRED
E. Consider Resolution Authorizing the Acquisition of 484 Charles Street,
Accepting the Grant Deed for Recordation and Amending the Fiscal Year
2007/08 Budget to Fund the Purchase. Staff Recommendation: 1) Adopt
Resolution No. 2008 -195; 2) Authorize the Executive Director to execute
all documents necessary to this transaction; and 3) Authorize the Agency
Secretary to accept and consent to the recordation of any deed. ROLL
CALL VOTE REQUIRED
F. Consider Contract for Theater Management Services. Staff
Recommendation: Approve the contract for a one year period beginning
July 1, 2008, subject to final language approval by the Executive Director
and Agency Counsel.
6. CLOSED SESSION:
Mr. Kueny requested that the Agency recess the meeting and reconvene into
closed session for a discussion of Item 6.13. at the conclusion of the City Council
meeting.
AT THIS POINT in the meeting, a recess was declared. The time was 7:21 p.m. The
meeting reconvened at 10:05 p.m.
MOTION: Agency Member Parvin moved and Agency Member Van Dam seconded a
motion to go into closed session for discussion of Item 6.13. (one case) on the agenda.
The motion carried by voice vote 4 -0, Agency Member Millhouse absent.
B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the
Government Code: (Number of cases to be discussed - 4)
Present in closed session were Agency Members Mikos, Parvin, Van Dam, and
Chair Hunter; Steven Kueny, Executive Director; Joseph Montes, General
Counsel; and Deborah Traffenstedt, Agency Secretary.
.aR'sa
Minutes of the Redevelopment Agency
Moorpark California Page 3 June 18. 2008
The Agency reconvened into open session at 10:13 p.m. Mr. Kueny announced
that one case under Item 6.13. was discussed and that there was no action to
report.
7. ADJOURNMENT:
Chair Hunter adjourned the meeting at 10:13 p.m.
Patrick Hunter, Chair
ATTEST:
Deborah S. Traffenstedt
Agency Secretary
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