COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

June 30, 2003

BOARD MEETING DATE:

July 15, 2003

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Resolution approving an Appropriation Transfer Request for transfer of $1,238,000 from General Fund Non-Departmental Reserves to fund the acquisition of Assessor's Parcel Number 047-331-010, the Western Parcel of the Mirada Surf property.

Recommendation
Adopt a Resolution approving an Appropriation Transfer Request for transfer of $1,238,000 from General Fund Non-Departmental Reserves to fund the acquisition of Assessor's Parcel Number 047-331-010, the Western Parcel of the Mirada Surf property.

Background
On January 15, 2002, this Board adopted Resolution No. 65021, authorizing the acquisition of Assessor's Parcel Numbers 047-330-010 and 047-331-010, collectively known as the Mirada Surf Property. That Resolution further authorized the President of the Board to execute the necessary Certificates of Acceptance in connection with the acquisition, and the Assistant County Manager to execute, on behalf of the County, any documents and agreements required in order to complete the purchase. On January 31, 2002 the County acquired APN 047-330-010, the Eastern Parcel of the Mirada Surf Property. The Purchase and Sale Agreement between the County and the Sellers, Michael D. McCracken, et al and Anthony H. Eredia Trust, et al, includes an option to purchase the Western Parcel of the property at the agreed upon price of $3,000,000, provided the transaction is completed by July 30, 2003. The County has paid a total of $200,000 to the Sellers in consideration for the option to purchase the Western Parcel, all of which will be applied to the purchase price. If the County does not purchase the Western Parcel, the Sellers will retain the $200,000 option consideration, and the County will have no further rights in relation to the property.

Discussion

It was anticipated at the time of adoption of Resolution 65021 that the funding for acquisition of the Western Parcel would be from a combination of grants and donations. During the time afforded by the option, the San Mateo County Parks Foundation has taken responsibility for raising money through grants and donations to fund the purchase of the Western Parcel. Of the grant funds identified and approved, some will be delivered directly to the purchase escrow, and others can only be distributed as a reimbursement following the transfer of title to the County. The following grants and donations have been identified to date:

State Coastal Conservancy: $1,500,000

Proposition 12 Funds: 653,000

State Land and Water Conservation Fund: 350,000

County Parks Foundation Donation: 75,000

Total Grants and Donations: $2,578,000

The State Coastal Conservancy intends to deliver $1,500,000 to the purchase escrow prior to closing. The money from the Land and Water Conservation Fund and Proposition 12 Funds can only be reimbursed to the County after completion of the acquisition. This means that the County must advance approximately $1,003,000 of the above $2,578,000 in order to complete the transaction.

In addition, fundraising efforts have fallen approximately $422,000 short of the $3,000,000 goal. In order to complete the acquisition, the County must fund an additional $222,000 toward the purchase price, the $200,000 option consideration already paid, and the cost title and escrow fees, estimated to be an additional $13,000 (a total of $435,000).

While fundraising efforts are ongoing, and additional grant applications are pending, in order to complete the acquisition the County must be prepared to expend the $435,000 identified above without an assurance of reimbursement. In addition, the County must advance $1,003,000 pending reimbursement. With credit for the $200,000 paid directly to Sellers for the option consideration, the total necessary ATR is $1,238,000.

The Director of the Environmental Services Agency and the Director of the Recreation and Parks Department concur in this recommendation.

Vision Alignment

The action to transfer Reserves to fund the acquisition of the Western Parcel of Mirada Surf keeps the commitment of: Preserving and providing people access to our natural environment and goal 15: Residents have nearby access to green space, such as parks and recreational opportunities.

Fiscal Impact

Including the $1.5 million grant from the State Coastal Conservancy for the acquisition of the Western Parcel, the County Parks Foundation has accumulated $2,578,000 of the $3,000,000 purchase price. On an interim basis, the County will need to fund an additional $1,238,000 for the balance of the purchase price and associated closing costs. Immediate reimbursement of $653,000 from Proposition 12 and $350,000 from the Land and Water Conservation Fund is expected. To the extent that additional grants and donations are received, the County will be reimbursed any funds expended for this purpose. It is anticipated that full reimbursement can be completed in Fiscal Year 2003-2004.