REPORT TO THE CITY COUNCIL July 28, 2016 FROM: SCOTT L. MOZIER, PE, and Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, and City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division CRAIG L. HANSEN, Supervising Real Estate Agent Public Works Department, Real Estate Services Section BY: PETE CALDWELL, Senior Real Estate Agent Public Works Department, Real Estate Services Section SUBJECT ..Title Actions related to the sale of water pump site 28A to the adjacent property owner Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust: 1. Adoption of a finding of no possibility of significant effect pursuant to CEQA Guidelines Section 15061 and Categorical Exemption pursuant to CEQA Guidelines Section 15312 for the sale of an abandoned water well parcel. 2. Approve the sale of a small abandoned water well parcel known as APN 450-183-02T located near Olive Avenue and Fruit Avenue, to the adjacent property owner Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust and authorize the Public Works Director, or his designee, to sign all documents necessary to complete the transaction. (Council District 3) ..Body RECOMMENDATION Staff recommends that the City Council: 1. Adopt a finding of no possibility of significant effect pursuant to CEQA Guidelines Section 15061 and Categorical Exemption pursuant to CEQA Guidelines Section 15312 for the sale of a small abandoned water well property located near Olive Avenue and Fruit Avenue to the adjacent property owner Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust. 2. Authorize the Public Works Director or his designee to execute the Agreement for Purchase and Sale of Real Property and complete the sale of excess land to adjacent property owner Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust. EXECUTIVE SUMMARY In order to eliminate maintenance costs and return land to the tax roll, it is proposed the City sell a small abandoned water well property to the adjacent property owner. The site contains approximately 500 square feet and is located near Olive Avenue and Fruit Avenue. The property is too small for independent development and can only be utilized by the adjacent property owner. The owner has agreed to pay $1,000 for the parcel. The property will be sold "as is" to the adjacent owner Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust. BACKGROUND The City owns a number of abandoned water well properties which are no longer in use or needed by the City. The City Water Division plans to dispose of these properties, which are either too small, irregularly shaped, or lack adequate access to be developed independently. Because of these characteristics, the sites can only be utilized by adjacent property owners. The sales price of the site is established by analysis of the size, shape, location, frontage, access, use potential, potential benefit added to the adjacent property, and subsequent negotiations with the prospective buyers. The sale price for this site is in the range of prices the City has received for similar surplus well sites. Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust, the adjacent property owner contacted the Real Estate Section of Public Works Department to inquire if the property was for sale now that it appears to be abandoned. After discussions with the Department of Public Utilities - Water Division it was confirmed that the site was ready for disposal. The acquisition documents were prepared and presented to adjacent property owner for signature. The documents signed by the Jagir Kaur Kang, Trustee of the Jagir Kaur Kang Family Trust, have been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this action and, pursuant to California Environmental Quality Act (CEQA) Guidelines, Section 15061, has determined with certainty that there is no possibility that this action may have a significant effect on the environment, because it is merely a change of ownership. Therefore, this action does not constitute a project for CEQA purposes. Furthermore, this is exempt pursuant to CEQA Guidelines Section 15312 (Class 12 Categorical Exemption), regarding the sale of surplus government property, and none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines Section 15300.2 are applicable. LOCAL PREFERENCE Local preference was not considered because the City's sale of property does not include a bid or award of a construction or services contract. FISCAL IMPACT There will be no General Fund dollars required to sell this property. The adjacent property owner has deposited $1,000.00 with the City of Fresno to cover the recording fees and the purchase the parcel. Attachments: APN Vicinity Map Purchase and Sale Agreement