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HomeMy WebLinkAboutAGENDA REPORT 2018 0321 CCSA REG ITEM 10O CITY OF MOORPARK, CALIFORNIA City of Moorpark of March 21, 2018 ACTION Approved staff recommendation Adopted le so No 2U125-3690 Item: 10.0. By M. Benson MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jessica Sandifer, Community Services Manager DATE: March 9, 2018 (CC Meeting of 03/21/18) SUBJECT: Consider Purchase of 136 First Street (APN 512-0-102-120) and Resolution Amending Fiscal Year 2017/18 Budget to Fund Transaction and Allocate Funds for Pre-Acquisition Due-Diligence and Property Maintenance BACKGROUND & DISCUSSION Staff has negotiated with Ms Rosalina Cassese to purchase the property located at 136 First Street The property is located on First Street immediately east of the two properties already owned by the City The property had previously been red tagged by Building and Safety due to an issue with the gas line that caused the residential building on the property to slide off its foundation It is proposed that this property would become a part of the Area Housing Authority's scattered site project that they are currently exploring on the adjacent city-owned property The property proposed for purchase has an 800 square foot residential dwelling unit on a 7,500 square foot lot Due to the red tag status of the property, the building will be demolished after purchase Staff is in the process of having a Limited Phase I Environmental Site Assessment (Phase I) completed on the property, but the results will likely not be received prior to the City Council meeting The City Council is being asked to authorize the purchase of the property, subject to a favorable Phase I report ENVIRONMENTAL DETERMINATION Staff has evaluated the acquisition of 136 First Street for compliance with the California Environmental Quality Act (CEQA) The Community Development Director has determined the acquisition action is exempt from CEQA under Section 15061 (b)(3) of the CEQA Guidelines, also known as the "general rule" exemption, because it can be seen with certainty that its acquisition will not have the possibility to have a significant effect on the environment This exception applies because the City is not proposing to use the property or to change the property to a new use at this time, and will only be demolishing a residential structure that can no longer be legally occupied due to foundation damage If and when the City proposes to use the property, environmental review of the proposed use would be conducted at that time 118 Honorable City Council March 21, 2018 Regular Meeting Page 2 FISCAL IMPACT The negotiated sale price for the property is $250,000.00. There is no funding in the FY 2017/18 budget allocated for the pre-acquisition due diligence costs, purchase price, closing costs or associated maintenance after close of escrow. Staff is requesting a budget amendment of $259,500.00 to fund these costs from the City Affordable Housing Fund (2121). After the purchase of 136 First Street is complete, and in consideration of current appropriations from the fund, the current balance in the City Affordable Housing Fund will be approximately $3,048,587. Staff will schedule a future agenda item to request funding for the demolition of the structure, which is estimated to cost $40,000. STAFF RECOMMENDATION (ROLL CALL VOTE) 1. Authorize purchase of property at 136 First Street and authorize the City Manager to approve and sign all documents relevant to the transaction, subject to a favorable Phase I report, subject to final language approval of the City Manager; and 2. Authorize the City Clerk to accept the Grant Deed for the property; and 3. Adopt Resolution No. 2018-_______, amending the Fiscal Year 2017-18 budget for costs associated with the purchase and maintenance of the property. Attachment: 1. Draft Resolution No. 2018-_____ 119 RESOLUTION NO. 2018-______ A RESOLUTION OF CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2017/18 BUDGET BY APPROPRIATING $259,500.00 FROM THE CITY AFFORDABLE HOUSING FUND (2121) FOR PURCHASE OF PROPERTY AND PROPERTY MAINTENANCE OF 136 FIRST STREET (COST CENTER NO. L0080) WHEREAS on June 21, 2017, the City of Moorpark adopted the Operating and Capital Improvement Projects budget for Fiscal Year (FY) 2017/18; and WHEREAS, a staff report has been presented to City Council authorizing the purchase of the property located at 136 First Street (Cost Center No. L0080) for a future affordable housing project; and WHEREAS, an aggregate budget amendment of $259,500.00 is requested from the City Affordable Housing Fund (2121) - $257,000 for pre-purchase due diligence and property purchase costs in the City Affordable Housing Division (422); and $2,500.00 in the Property Maintenance Division (172) for post-closing maintenance costs; and WHEREAS, Exhibit “A”, attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line items. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. An aggregate budget amendment in the amount $259,500.00 from the City Affordable Housing Fund (2121), as more particularly described in Exhibit “A”, attached hereto, is hereby approved. SECTION 2. The City Clerk 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 21st day of March, 2018. _____________________________ Janice S. Parvin, Mayor ATTEST: ________________________________ Maureen Benson, City Clerk Exhibit A – Budget Amendment 120 Resolution No. 2018 – ______ Page 2 EXHIBIT A BUDGET AMENDMENT FOR CITY AFFORDABLE HOUSING FUND (2121) FOR PURCHASE AND MAINTENANCE COSTS FOR 136 FIRST STREET FY 2017/18 FUND BALANCE ALLOCATION: Fund Title Fund-Account Number Amount City Affordable Housing Fund 2121-000-00000-33990 $ 259,500.00 Total $ 259,500.00 EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2121-422-L0080-55100 $ - $ 257,000.00 $ 257,000.00 2121-172-L0080-53000 $ - $ 2,500.00 $ 2,500.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - Total $ - $ 259,500.00 $ 259,500.00 121