REPORT TO THE CITY COUNCIL
June 21, 2018
FROM: BUD TICKEL, Interim Assistant Director
Department of Public Utilities, Water Division
BY: HENRY McLAUGHLIN, Business Manager
Department of Public Utilities, Water Division
SUBJECT
Title
Actions pertaining to the acquisition of real property for expansion of the Water Corporation Yard:
1. Adopt a finding of Categorical Exemption pursuant to CEQA Guidelines Sections 15301 and 15332; and
2. Approve the acquisition of one parcel located at 1830 E. University Avenue (APN 446-231-08) from Marvin and Jacqueline Scheidt Trust, in the amount of $243,000. (Council District 7)
Body
RECOMMENDATIONS
Staff recommends that the City Council adopt a finding of Categorical Exemption pursuant to CEQA Guidelines Sections 15301/Class 1 (Existing Facilities) and 15332/Class 32 (In-fill Development) for expansion of the Water Division Corporation Yard and approve the fee simple acquisition of the parcel located at 1830 E. University Avenue (APN 446-231-08) required for the expansion of the Water Division Corporation Yard from the Scheidt Family Trust for the amount of $243,000.
EXECUTIVE SUMMARY
The Water Division Corporation Yard (Water Yard) is located at 1910 E. University Avenue. An increase in the number of employees, vehicles, equipment and materials has necessitated the expansion of facilities. The property at 1830 E. University Avenue, which is due west of the Water Yard, has become available on the market and staff recommends acquiring it. In the event the Water Division is relocated, the acquisition cost of this property will be recovered as part of the Water Yard Sale.
BACKGROUND
The City of Fresno Department of Public Utilities (DPU) Water Division Administration Building and Corporation Yard is currently located at 1910 E. University Avenue on a 4.77-acre parcel between University and McKinley Avenues. The on-site facilities consist of seven buildings with Administration, Operations, Conservation, Electrical, Meter Program, Fleet Maintenance, and Warehouse functions dispersed among them. The remaining portion of the site is occupied by a paved yard with storage areas for materials and equipment and parking areas for City and private vehicles.
These facilities have served the City in the past, but are inadequate for the City’s current and long-term needs. This was confirmed in a space needs assessment done as part of the Conceptual Basis of Design Report - Administration and Corporation Yard by Carollo Engineering (August 2014).
On October 16, 2017, the property at 1830 E. University Avenue was listed for sale. This parcel is adjacent to the west side of the Water Yard and consists of 15,680 SF of property with a 6,950 SF light industrial building. It formerly housed the Robinson Auto Body business for many years.
This property has been identified as a suitable site to expand the Water Yard due to its size, location and existing building. The City has accepted the appraisal done by Scott Appraisal Company for the Scheidt Family Trust, dated September 28, 2017. Staff has negotiated with the property owners to purchase the subject parcel for the appraised value of $243,000. Owners of the parcel have agreed to the amount of compensation offered by the City and signed the Agreement for Purchase and Sale and the Grant Deed. With Council approval, payment will be made to the owner and the Grant Deed will be recorded. The documents signed by the property owners have been approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
A Phase I environmental site assessment (ESA) was completed in December 2017 by Provost & Pritchard (P&P) to identify potential or existing environmental contamination liabilities. Based on this preliminary ESA, a Limited Phase II ESA was performed by P&P in general accordance with the guidelines specified in the ASTM Guideline E-1903, Standard Practice for Environmental Site Assessments: Phase II Environmental Site Assessment Process and submitted on February 2018. The objective of the Limited Phase II (ESA) was to assist in understanding the potential impact of the recognized environmental conditions associated with the Site’s past and current use identified in the Phase I ESA for the Site dated January 2017. A recognized environmental condition (REC) is defined by American Society for Testing and Materials (ASTM) as “the presence or likely presence of hazardous substances or petroleum products under conditions that indicate a release into structures on the property or into the ground, groundwater or surface water of the property.” This standard meets the All Appropriate Inquires (AAI) rule set forth by the Environmental Protection Agency (EPA).
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemptions as set forth in CEQA Guidelines Section 15301(c) which exempts the repair, maintenance or minor alteration of existing structures or facilities. The project also falls within the Class 32 of CEQA Guideline Section 15332 which exempts in-fill development projects meeting the following conditions: the project is consistent with the applicable general plan designation, policies, zoning designation and regulations, b) project is within City limits, less than 5 acres and substantially surrounded by urban areas, c) the project has no value as habitat for endangered, rare or threatened species, d) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality, and e) the site can be adequately served by all required utilities and services. Furthermore, Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference was not considered because the acquisition of this property does not include a bid or award of construction or services contract.
FISCAL IMPACT
The acquisition will not have any impact to the General Fund. Funds are available in the Water Division’s FY 2018 Capital Improvement Program budget within the Water Enterprise Fund (40101). The purchase price is expected to be recovered should the Water Yard ever be sold.
Attachments:
Vicinity Map - Attachment 1
Location Map - Attachment 2
Purchase and Sale Agreement - Attachment 3