HomeMy WebLinkAbout2002-12-02 City Council (2)City of Palo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL 3
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
DECEMBER 2, 2002 CMR: 440:02
BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF
$36,332 AS PAYMENT TO NORTH AMERICAN TITLE COMPANY
TO PROVIDE TITLE INSURANCE IN CONJUNCTION WITH THE
PURCHASE OF PORTIONS OF THE CUBBERLEY PROPERTY
AT 4000 MIDDLEFIELD ROAD AND THE TERMAN PROPERTY
AT 655 ARASTRADERO ROAD
RECOMMENDATION
Staff recommends the Council approve the attached Budget Amendment Ordinance
(BAO) in the amount of $36,332 in order to provide title insurance for the purchase of
portions of the former Cubberley High School and Terman Middle School sites.,
BACKGROUND
On November 1, 1981, the City and Palo Alto Unified School Distri.ct (PAUSD)entered
into a lease/purchase agreement for the former 19.56-acre Terman Middle School site.
During the term of the lease purchase, the City subdivided the site into three separate
sections. 4.35 acres was used for a low income housing project and the road leading to it;
7.93 acres for the Jewish Community Center (JCC); and the remaining 7.28 acres was
dedicated as park land in 1985.
In 1999, just prior to the City’s completion of the purchase of the site, PAUSD notified
the City of its intent to reopen the Terman Middle School. During the next two years, the
City, PAUSD, the JCC and Stanford University struggled to find a solution to PAUSD’s
need for a third middle school site. Finally, on September 10, 2001, the Council approved
a Four-Party Memorandum of Understanding (MOU) to resolve the middle school
challenge. One of the five inter-related transactions included in the memorandum was
the City/PAUSD land swap. The land swap transferred the Terman Community Center
portion of the site to PAUSD without creating a financial hardship to either party. The
land swap included exchanging all of the buildings and 7.93 acres of the Terman site to
PAUSD in exchange for some of the buildings and 7.93 acres of the former Cubberley
High School site.
CMR:440:02 Page 1 of 2
DISCUSION
The value of each of the sites is estimated to be $15,000,000. In order to protect the City
against any recorded claims against the properties, staff is recommending the City
purchase title insurance for each of the sites. North American Title Insurance Company
will provide title insurance on both sites for $36,332.
RESOURCE ’IMPACT
The attached BAO requests approval for an appropriation of $36,332 from the General
Fund Budget Stabilization Reserve. The appropriation is a one-time expense and there
are no future year resource needs anticipated as a result of this BAO.
POLICY IMPLICATIONS
This recommendation does not represent any changes to City policies.
ENVIRONMENTAL REVIEW
The proposed purchase of title insurance is not a project under the California
Environmental Quality Act (CEQA) and requires no environmental review.
ATTACHMENTS
Attachment A: Budget Amendment Ordinance
Attachment B: General Fund Budget Stabilization Reserve Balance
PREPARED BY:
WILLIAM W. FELLMAN
Manager, Real Property
DEPARTMANT APPROVAL:
CARL YEATS
Director,Services
CITY MANAGER APPROVAL:
EMIL HARRISON
Assistant City Manager
cc: North American Title Insurance Company
CMR:440:02 Page 2 of 2
ATTACHMENT A
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2002-03 TO
PROVIDE AN APPROPRIATION OF $36,332 AS PAYMENT TO NORTH
AMERICAN TITLE COMPANY TO PROVIDE TITLE INSURANCE IN
CONJUCTION WITH THE PURCHASE OF PORTIONS OF CUBBERLEY
PROPERTY AT 4000 MIDDLEFIELD ROAD AND THE TERMAN PROPERTY
AT 655 ARASTRADERO ROAD.
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June 17,
2002 did adopt a budget for fiscal year 2002-03; and
WHEREAS, on September 10,2001, the Council approved a Four-
Party Memorandum of Understanding (MOU) to resolve the Terman Middle
School issue, and to find a viable solution to the transferring of
the Terman Community portion of the site to PAUSD without creating a
financial hardship to either party; and
WHEREAS, the Land Exchange includes transferring all of the
buildings and 7.93 acres of the Terman site to PAUSD in exchange for
some of the buildings and 7.93 acres of the former Cubberly High
School site; and
WHEREAS, the value of each of the sites is estimated to be
$15,000,000; and
WHEREAS, to protect the City against any recorded claims
against the properties, staff recommends the purchase of title
insurance for each of the sites; and
WHEREAS, the North American Title Insurance Company will
provide title insurance on both sites for $36,322; and
WHEREAS, the additional appropriation of funds from the General
Fund Budget Stabilization Reserve is a one-time expense and no
future year resource impact to the General Fund Budget Stabilization
Reserve is anticipated.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION io The sum of thirty six thousand and three hundred and
thirty two dollars ($36,332) is hereby appropriated to non-salary
expenses in the Property Management Functional Area in the
Administrative Services Department, and the Budget Stabilization
Reserve is correspondingly reduced.
SECTION 2. This transaction will reduce the
Stabilization Reserve from $22,593,000 to $22,556,668
Budget
SECTION 3. As specified in Section 2.28o080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 4. A mitigated Negative Declaration for the project was
approved by Council on October 13, 1998. No further environmental
review for the project is necessary under the requirements of the
California Environmental Quality Act (CEQA) o
SECTION 5. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Senior, Asst. City Attorney
Director of Administrative
Services
City of Paio Alto
ATTACHMENT B
Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2002-03
Balance
Adopted Budget Projected Changes to BSR
City’s Contribution to the Cost of the Sound Wall for the Tennis
Facility at 3005 Middlefield Road
Reimbursement for Jewish Community Center for refurbishing costs
to Cubberley Community Center
Title Insurance for Terman and Cubberley
$22,740,000
($60,000)($60,000)
($50,0o0)($50,00o)
($37,000)($37,000)
($36,332)($36,332)
BSR Balance After BAO’s
11/19/2002