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CITY COUNCIL AGENDA ITEM NO. 7

Meeting Date: February 24, 2004

Subject/Title: Approve the Purchase Agreement with the Martins, consisting of a property exchange for the Shady Willow Lane Extension – Phase 1 Project, CIP Project No. 336-3143 and Fire Station #56, CIP Project No. 337-3703.

Submitted by: Engineering: B. Grewal/M. Kirby/M. Sullivan

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a Resolution approving the following actions: (1) approve an agreement for purchase of fee parcel (property exchange) with Ralph Martin, Jim Martin, Paul Martin and Lawrence Martin, for real property identified as a portion of APN 019-031-001, generally located on the southwest corner of Amber Lane and Shady Willow Lane, hereby accepting real property on behalf of the City, and authorizing the Mayor or City Manager and City Clerk or any of their designees to execute the agreement, and such other documents as may be needed to complete the transaction including acceptance of the Deed; (2) authorize the Mayor or City Manager and City Clerk or any of their designees to execute a Grant Deed, and such other documents as may be needed to complete the transaction to convey the City owned property identified as a portion of APN 019-010-011, APN 019-010-017 and APN 019-010-028 (property exchange) from the City of Brentwood to Ralph Martin, Jim Martin, Paul Martin and Lawrence Martin or their designees, described in said purchase agreement.

PREVIOUS ACTION
On November 10, 1998, the City Council approved Resolution No. 98-196 that annexed the northwest area into the City of Brentwood.

On November 28, 2000, the City Council approved Resolution No. 2203 to take various actions. The actions included adding the Northwest Quadrant Infrastructure to the 2000/05 Capital Improvement Program, directing the City Engineer to initiate right-of-way acquisitions in order to widen Lone Tree Way, directing the City Engineer to initiate discussions with the development community to develop a Capital Improvement Financing Program (CIFP 2001-1) to assist in financing the required engineering and infrastructure to support the anticipated commercial development in this quadrant of the City, directing the City Engineer to hire a consultant to assist the City in developing environmental mitigation measures for this and other City infrastructure and, if possible, develop a mitigation bank to keep environmental mitigation expenditures within the City limits of Brentwood or immediately adjacent, to the maximum extent possible.

On February 27, 2001, the City Council approved Resolution No. 2246 approving the form and content of the Northwest Quadrant Infrastructure Design Engineering Fee Reimbursement Agreement and related actions.

On May 22, 2001, the City Council by Resolution No. 2299 certified and approved the Negative Declaration and adopted the 2001/2006 Capital Improvement Program (CIP) for the City of Brentwood including street, park, sewer, water and other municipal improvements to be constructed during the next five years.

On May 22, 2001, the City Council authorized the City Engineer to execute a Consultant Services Agreement with Cordoba Consulting, Inc. for project management services not to exceed $115,000 for the Northwest Quadrant Infrastructure Project now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127.

On May 7, 2002, by Resolution No. 02-18, the Planning Commission confirmed that the proposed 2002/03 – 2006/07 Capital Improvement Program (CIP) is consistent with the adopted General Plan of the City of Brentwood as required by Section 65401 of the Government Code.

On May 28, 2002, by Resolution No. 2549, the City Council adopted the City’s 2002/03 – 2006/07 Capital Improvement Program that included the Northwest Quadrant Infrastructure Project now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127.

On July 9, 2002, by Resolution No. 2610, the City Council approved executing contract amendments for professional design and service agreements for the Northwest Quadrant Infrastructure Project, now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127, which included Shady Willow Lane.

On January 28, 2003, by Resolution No. 2779 the City Council authorized the City Manager to execute a contract with EIP Associates to provide Environmental Consulting Services for a portion of the Northwest Quadrant Infrastructure Project, now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127, for the Shady Willow Lane widening and extension between Lone Tree Way and Sand Creek Road.

On May 6, 2003, by Resolution No. 03-31, the Planning Commission confirmed that the proposed 2003/04 – 2007/08 Capital Improvement Program (CIP) is consistent with the adopted General Plan of the City of Brentwood as required by Section 65401 of the Government Code.

On May 27, 2003, by Resolution No. 2893, the City Council adopted the City’s 2003/04 – 2007/08 Capital Improvement Program (CIP) that included the Shady Willow Lane Extension – Phase 1, CIP Project No. 336-3143 (previously part of the Northwest Quadrant Infrastructure Project, CIP Project No. 336-3127).

BACKGROUND
The purchase/property exchange between the Martins and the City accomplishes three objectives. The following synopsis explains why these actions are necessary.

First Objective:

Right-of-way for roadway purposes is necessary to complete Phase 1 of the Shady Willow Lane project in order to support commercial and residential development in the area. Utility facilities are virtually non-existent in this area. Phase 1 of this project will extend Shady Willow Lane from Lone Tree Way to Grant Street Extension. This phase consists of extending and widening 2,800 linear feet of Shady Willow Lane to an arterial street (140’ right-of-way), consisting of curbs, gutters, sidewalks, bike lanes, landscaping and two lanes in each direction.

When both phases of Shady Willow Lane are completed the proposed roadway will have widened the existing facility from two to four lanes and extended the road southward from Lone Tree Way for approximately one mile to Sand Creek Road. This project will provide an additional north south corridor to connect commercial centers on Lone Tree Way and Sand Creek Road. Also, this project will provide the necessary infrastructure to induce economic development of the commercial/industrial-zoned corridor between the Hwy 4 Bypass and Shady Willow Lane. This project is necessary to improve traffic circulation and alleviate traffic congestion on Fairview Avenue in the northwest quadrant.

Second Objective:

The acquisition of the 1-acre site is for the construction of Fire Station #56. This station will provide the much needed fire services in the Northwest Quadrant due to the rapidly growing residential and commercial development in the area.

Third Objective:

The Northwest Quadrant Infrastructure Project, now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127 required numerous property acquisitions. In acquiring the necessary right-of-way for the widening of Lone Tree Way the City agreed to acquire the entire parcel from some property owners even though all of their property was not necessary for the widening of Lone Tree Way. This was primarily due to the fact that the property owner would be left with a remaining parcel too small to relocate a residence on or develop individually. The Business Plan for the additional acquisitions was to sell all the assembled properties to an end-user. Staff estimated that the City would recoup the direct cost of the purchases and perhaps recoup some of the expenditures incurred under the Land/Acquisition Budget for the Northwest Quadrant Infrastructure Project, now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127.

The property exchanges therefore, would be beneficial for the City and will allow the City to obtain the objective to recoup some of the financial costs incurred on the above CIP project.

Appraisals were obtained on all parcels to determine fair market value for the negotiations on this property exchange. Due to the fact that the City’s property reflects a higher fair market value, the City will be receiving a substantial monetary sum through the escrow in addition to the property being exchanged.

The following is a brief background on each of the City owned parcels.

Parcel referred to above as APN 019-010-027 was acquired on June 21, 2001. The acquisition was required for the widening of Lone Tree Way. Due to the set back requirements of residential homes along a roadway, it was necessary for the City to acquire the entire parcel leaving the remainder of the parcel un-developable.

City Council directed the City Manager on July 23, 2002 to purchase the entire parcel referred to above as APN 019-010-011. A portion of the property acquired was needed for the widening of Lone Tree Way; the remaining portion of the parcel consists of approximately 16,400 square feet and has little potential for development as an isolated parcel in this zoning area.

On August 26, 2003, City Council approved the purchase of 1.3 acres referred to as APN 019-010-028. The conditions of approval on the Acorn Storage project required an extension of the future realigned Fairview Avenue as a private road to provide access for this project and provide cross access between the commercial sites to the west of this project. The construction of this private road severed off a portion of the parcel from the rest of the parcel. The logical disposition of this triangular shape portion consisting of 1.3 acres was to incorporate it with the City owned property.

FISCAL IMPACT
Shady Willow Lane Extension – Phase 1:
The existing budget for Shady Willow Lane Extension – Phase 1, which includes acquisition costs are provided through developer funding, assessment district funds and facility fees. The project was approved in this year’s Capital Improvement Program 2003/08, with $643,000 designated for Land/ROW/Acquisitions. According to the Project Report, $23,934.19 of the funds designated for Land/ROW/Acquisitions has been spent. However, $80,860 in Roadway Fee Credits has been issued for right-of-way acquired previously when Shady Willow Lane was included under the Northwest Quadrant Infrastructure (Lone Tree Way Widening) Project, CIP Project No. 336-3127, now known as Lone Tree Way Widening – Segments 1 & 2 and has subsequently been broken out into a separate project entitled “Shady Willow Lane Extension – Phase 1, CIP Project No. 336-3143”.

Fire Station #56:
Funding for this project derives from Fire Facility Fees, collected on all new residential and nonresidential projects in the City. This facility will be constructed as a turnkey project by the City to the Fire District.

The following is the budget breakdown for accounting purposes involving three CIP Projects mentioned in this staff report:

Shady Willow Right-of-way
$83,746 charged to Shady Willow Lane Extension – Phase 1, CIP Project No. 336-3143
$83,746 debited back to Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127

Fire Station #56 Site
$348,480 charged to Fire Station #56, CIP Project No. 337-3703
$348,480 debited back to Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127

Cash to be received through escrow per property exchange agreement
$773,361 debited back to Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127

Attachments:
Resolution
Site Map/ Project Map
Agreement

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING THE FOLLOWING ACTIONS: (1) APPROVE AN AGREEMENT FOR PURCHASE OF FEE PARCEL (PROPERTY EXCHANGE) WITH RALPH MARTIN, JIM MARTIN, PAUL MARTIN AND LAWRENCE MARTIN, FOR REAL PROPERTY IDENTIFIED AS A PORTION OF APN 019-031-001, GENERALLY LOCATED ON THE SOUTHWEST CORNER OF AMBER LANE AND SHADY WILLOW LANE, HEREBY ACCEPTING REAL PROPERTY ON BEHALF OF THE CITY, AND AUTHORIZING THE MAYOR OR CITY MANAGER AND CITY CLERK OR ANY OF THEIR DESIGNEES TO EXECUTE THE AGREEMENT, AND SUCH OTHER DOCUMENTS AS MAY BE NEEDED TO COMPLETE THE TRANSACTION INCLUDING ACCEPTANCE OF THE DEED; (2) AUTHORIZE THE MAYOR OR CITY MANAGER AND CITY CLERK OR ANY OF THEIR DESIGNEES TO EXECUTE A GRANT DEED, AND SUCH OTHER DOCUMENTS AS MAY BE NEEDED TO COMPLETE THE TRANSACTION TO CONVEY THE CITY OWNED PROPERTY IDENTIFIED AS A PORTION OF APN 019-010-011, APN 019-010-017 AND APN 019-010-028 (PROPERTY EXCHANGE) FROM THE CITY OF BRENTWOOD TO RALPH MARTIN, JIM MARTIN, PAUL MARTIN AND LAWRENCE MARTIN OR THEIR DESIGNEES, DESCRIBED IN SAID PURCHASE AGREEMENT.


WHEREAS, on November 10, 1998, the City Council approved Resolution No. 98-196 that annexed the northwest area into the City of Brentwood; and

WHEREAS, on November 28, 2000, the City Council approved Resolution No. 2203 to take various actions. The actions included adding the Northwest Quadrant Infrastructure to the 2000/05 Capital Improvement Program, directing the City Engineer to initiate right-of-way acquisitions in order to widen Lone Tree Way, directing the City Engineer to initiate discussions with the development community to develop a Capital Improvement Financing Program (CIFP 2001-1) to assist in financing the required engineering and infrastructure to support the anticipated commercial development in this quadrant of the City, directing the City Engineer to hire a consultant to assist the City in developing environmental mitigation measures for this and other City infrastructure and, if possible, develop a mitigation bank to keep environmental mitigation expenditures within the City limits of Brentwood or immediately adjacent, to the maximum extent possible; and

WHEREAS, on February 27, 2001, the City Council approved Resolution No. 2246 approving the form and content of the Northwest Quadrant Infrastructure Design Engineering Fee Reimbursement Agreement and related actions; and

WHEREAS, on May 22, 2001, the City Council by Resolution No. 2299 certified and approved the Negative Declaration and adopted the 2001/2006 Capital Improvement Program (CIP) for the City of Brentwood including street, park, sewer, water and other municipal improvements to be constructed during the next five years; and

WHEREAS, on May 22, 2001, the City Council authorized the City Engineer to execute a Consultant Services Agreement of Cordoba Consulting, Inc. for project management services not to exceed $115,000 for the Northwest Quadrant Infrastructure Project, now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127; and
WHEREAS, on May 7, 2002, by Resolution No. 02-18, the Planning Commission confirmed that the proposed 2002/03 – 2006/07 Capital Improvement Program (CIP) is consistent with the adopted General Plan of the City of Brentwood as required by Section 65401 of the Government Code; and

WHEREAS, on May 28, 2002, by Resolution No. 2549, the City Council adopted the City’s 2002/03 – 2006/07 Capital Improvement Program that included the Northwest Quadrant Infrastructure Project now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127; and

WHEREAS, on July 9, 2002, by Resolution No. 2610, the City Council approved executing contract amendments for professional design and service agreements for the Northwest Quadrant Infrastructure Project now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127, which included Shady Willow Lane; and

WHEREAS, on January 28, 2003, by Resolution No. 2779, the City Council authorized the City Manager to execute a contract with EIP Associates to provide Environmental Consulting Services for a portion of the Northwest Quadrant Infrastructure Project, now known as Lone Tree Way Widening – Segments 1 & 2, CIP Project No. 336-3127, for the Shady Willow Lane widening and extension between Lone Tree Way and Sand Creek Road; and

WHEREAS, on May 6, 2003, by Resolution No. 03-31, the Planning Commission confirmed that the proposed 2003/04 – 2007/08 Capital Improvement Program (CIP) is consistent with the adopted General Plan of the City of Brentwood as required by Section 65401 of the Government Code; and

WHEREAS, on May 27, 2003, by Resolution No. 2893, the City Council adopted the City’s 2003/04 – 2007/08 Capital Improvement Program (CIP) that included the Shady Willow Lane Extension – Phase 1, CIP Project No.336-3143 (previously part of the Northwest Quadrant Infrastructure Project, CIP Project No. 336-3127); and

WHEREAS, a portion of real property identified as APN 019-031-001, is needed for the widening of Shady Willow Lane Extension – Phase 1, CIP Project No.336-3143 (previously part of the Northwest Quadrant Infrastructure Project, CIP No. 336-3127) and Fire Station #56, CIP Project No. 337-3703; and

WHEREAS, a Purchase Agreement between the City of Brentwood and the vested property owner for a property exchange has been developed and is necessary to transfer property.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood, that the Purchase Agreement is hereby approved.

BE IT FURTHER RESOLVED that the Mayor or City Manager and City Clerk or any of their designees are authorized to execute the agreement and any related escrow documents including acceptance of the Grant Deed.

BE IT FURTHER RESOLVED that the City of Brentwood hereby accepts the Grant Deed.

BE IT FURTHER RESOLVED that the Mayor or City Manager and City Clerk or any of their designees are authorized to execute a Grant Deed to convey City owned property identified as a portion of APN 019-010-011, 019-010-027 & 019-010-028, and such other documents as may be needed to complete the property exchange.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 24th day of February 2004 by the following vote:

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