COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office and
Department of Public Works

DATE:

November 28, 2005

BOARD MEETING DATE:

December 13, 2005

SPECIAL NOTICE/HEARING:

One week notice

VOTE REQUIRED:

4/5ths

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Division
Neil R. Cullen, Director of Public Works

SUBJECT:

Agreement with the Redevelopment Agency of the City of East Palo Alto for the purchase and sale of a parcel at the northeast corner of University Avenue and Bay Road, East Palo Alto (COP 1724) and the transfer to the City of East Palo Alto of the East Palo Alto Drainage Maintenance District and the Ravenswood Highway Lighting District.

Recommendation

Adopt resolutions:

1) authorizing the execution of an agreement with the Redevelopment Agency of the City of East Palo Alto for the purchase and sale of surplus County-owned land at the northeast corner of University Avenue and Bay Road, East Palo Alto (APN 063-111-230),

2) authorizing the transfer of all interests in real property owned by the County for the benefit of the East Palo Alto Drainage Maintenance District to such District, and

3) authorizing the County Manager, or designee, to execute documents, notices, and escrow instructions in connection with the Agreement, and

4) recognizing the City of East Palo Alto (City) as the governing board of the Ravenswood Highway Lighting District (Lighting District) and authorizing the transfer of all assets and liabilities of the Lighting District to the City for the benefit of the Lighting District; and

5) transferring jurisdiction of the East Palo Alto Drainage Maintenance District (Drainage District) to the City as requested by the City and authorizing the transfer of all assets and liabilities of the Drainage District to the City for the benefit of the Drainage District.

Vision Alignment

This action meets the County's commitment to responsive, effective and collaborative government, and addresses Goal 22, County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County. The goal is addressed by transferring property surplus to County needs, but deemed crucial by the City to the revitalization of the Ravenswood Business District.

Background

The County acquired APN 063-111-230 in 1977 using Community Development Block Grant funds. The vacant site consists of 10,000 square feet at the northeast corner of University Avenue and Bay Road in East Palo Alto. The mini-park that was considered at the time was not established, and the property was declared surplus to County needs in February 2004.

As set forth in Government Code §25365, by a 4/5ths vote the Board may sell to a public agency property not required for county use. Notice of the intent to transfer the property has been published as required in §25365.

A purchase and sale agreement for the University and Bay parcel has been negotiated with the City’s Redevelopment Agency on the condition that the City accept the transfer from the County of two utility districts, the Ravenswood Highway Lighting District and the East Palo Alto Drainage Maintenance District.

The Lighting District and the Drainage District (Districts) were established by your Board in 1926 and 1963 respectively, but were not dissolved when the City was incorporated in 1983. The Districts have continued to be governed by your Board and have continued to provide lighting and drainage maintenance services within the City’s corporate limits.

Assets of the Drainage District include fee title to APN 063-580-040 and certain drainage easements. Although acquired for the benefit of the Drainage District, the County holds title to the real property.

Discussion

The Purchase and Sale Agreement and Escrow Instructions (“Agreement”) negotiated with the Redevelopment Agency sets forth the terms of sale of the surplus parcel at University and Bay for $250,000, subject to the transfer of the Districts.

As a procedural matter in the transfer of the Drainage District, title to the real property acquired for the benefit of the Drainage District must pass from the County to the District prior to the transfer of the District to the City. There is no real property associated with the Lighting District.

The East Palo Alto City Council has adopted resolutions as required to facilitate the transfer of the Districts, and the Redevelopment Agency has authorized execution of the Purchase and Sale Agreement. The transfer of the Districts will be simultaneous with the sale of the University and Bay site.

The Director of the Department of Housing and the Public Works Director concur in this recommendation.

Fiscal Impact

Along with the assets of the Districts, the city will assume the Districts’ governmental duties and financial obligations. Assets of the Lighting District consist of a fund balance of approximately $1,004,000; the annual tax, interest and other revenue of approximately $140,000 per year; principal and interest proceeds (as of November 30, 2005) in the amount of $62,600 from an outstanding $50,000 loan made to Drainage District; and approximately 803 lights. City staff will be provided an inventory and the location of existing lights as well as all documents associated with the Lighting District.

Assets of the Drainage District consist of the District real property noted above, improvements to the property, including the O’Connor Street Pump Station, a fund balance of approximately $5,600; and the annual tax, interest and other revenue of approximately $25,000 per year. The City will also administer the above referenced $62,600 debt to the Lighting District. City staff will be provided all documents associated with the Drainage District.

There is no impact on the General Fund. The proceeds of the sale of real property will be deposited in the appropriate Housing and Community Development account.