TITLE
Recommendation to declare City-owned property located at 1236 West 16th Street as surplus; and authorize City Manager to execute an agreement for acquisition of real property and escrow instructions for the sale of City-owned property to the County Sanitation District No. 3 of Los Angeles County for the expansion of the Long Beach Main Pumping Plant. (District 1)
DISCUSSION
The County Sanitation District of Los Angeles County (County) operates the Long Beach Main Pumping Plant (LBMPP), which primarily serves the cities of Long Beach and Signal Hill with over 95% of wastewater flow originating from the City of Long Beach. The LBMPP handles an average flow of 40 million gallons per day and a peak flow of 54 million gallons per day. The County is in the process of upgrading and expanding the LBMPP and additional property is required to construct a block building that will house a new switchboard.
The County has expressed interest in purchasing City-owned property at 1236 West 16th Street, adjacent to the Long Beach Route 710 Freeway (Exhibit "A"). The Fair Market Value of the property, as determined by an independent appraisal conducted by the City's appraisal consultant, is $154,000. The Fair Market Value of the property, as determined by an independent appraisal conducted by the County's appraisal consultant, is $125,000. The City and County have agreed to a purchase price of $139,500, which is an average of both the City and County appraisals. Acquisition of the property will allow the County to proceed with required upgrades and expansion of the LBMPP.
Pursuant to Government Code Section 54222, the State of California Resources Agency was contacted to determine its interest in purchasing the property. The State has declined to purchase and the City can therefore proceed with the sale of the property to the County. Further, in accordance with past practice, a memorandum was circulated to all City departments to determine their interest in or objection to declaring this parcel surplus. No City department expressed an interest or objection.
In an effort to accommodate the County, the proposed Agreement will contain the following major terms and conditions:
. Premises: The property to be conveyed by the City to the County Sanitation District
is approximately 0.17 acres located at 1236 West 16th Street, adjacent to the Long
Beach Route 710 Freeway.
. Purchase Price: The County will purchase the property for $139,500, the average of
both the City and County independent appraisals.
This letter was reviewed by Deputy City Attorney on April 17, 2008, and Budget Management Officer Victoria Bell on April 29, 2008.
TIMING CONSIDERATIONS
City Council action is requested on May 13, 2008 to expedite the sale to the County and County's subsequent expansion of the Long Beach Main Pumping Plant.
FISCAL IMPACT
One-time revenues of $139,500 will accrue to the General Fund (GP) in the Department of Community Development (CD).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
DENNIS V. THYS
DIRECTOR OF COMMUNITY DEVELOPMENT
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PATRICK H. WEST |
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CITY MANAGER |