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TO:HONORABLE MAYOR AND CITY COUNCIL
FROM:ASSISTANT CITY MANAGER
DATE:DECEMBER 3, 2002
SUBJECT:BUDGET ADJUSTMENT FOR OPEN SPACE LAND PURCHASE
Adopt Resolution No. 2002 - ; amending Resolution 2002-45, the budget appropriation for Fiscal Year 2002-2003; for a budget adjustment to the City's General fund to purchase open space land adjacent to Del Cerro Park, as previously authorized by the City Council.
From time to time, the City receives notices from the Los Angeles County Tax Collector regarding parcels in our City that will be put up for pubic auctions for unpaid property taxes. Pursuant to the State Revenue and Tax Code, if the City determines that a particular parcel in needed for public purposes, the City may request to have the parcel removed from the auction and acquire title to the property. In August 2001, the City purchased a Ĺ acre vacant lot on Cherry Hill Lane in the Portuguese Bend Landslide Area through this means. This parcel was bought from the County for $2,721.
On June 16, 2001, City Council directed staff to pursue acquisition of a vacant 17.44-acre tax defaulted parcel located adjacent to Del Cerro Park. Although the property is very steep, its acquisition would: 1) expand the size of Del Cerro Park from nearly 4 acres to over 21 acres; 2) could possibly provide a trail connection between the developed park site and the proposed Portuguese Bend Nature Preserve; and, 3) may also assist the City in the completion of its Natural Communities Conservation Planning (NCCP) effort. The staff report and excerpt minutes from the June 16, 2001 meeting are attached for the Councilís information.
On November 21, 2002, the City received the attached notice from the Los Angeles County Tax Collector that the parcel adjacent to Del Cerro Park is now ready for transfer to the City. As part of the Chapter 8 Agreement to purchase the property, the City must now pay the County $18,215.61 for the property in order to obtain title to the land.
The purchase of tax defaulted vacant property from the County Tax Collector provides the City with a unique opportunity to acquire open space at a cost that is significantly below market value. In the case of the subject property, the City would be paying $1,044 per acre, which is substantially less than what other open space acreage has been appraised for in the surrounding area.
Because completion of the sale is uncertain until the final notice is received from the County, no funds were included in the adopted FY 02-03 budget. Therefore, a budget adjustment is necessary in order for the City to complete the transaction. If authorized by the City Council, the necessary funds would come from the General fund reserve.
The current amount of the projected General Fund Reserve available for appropriation (which is the Total General Fund Reserve less the General Fund Reserve policy level of $6,451,870) is $312,152. On November 19, 2002, the Council authorized an additional expenditure to fund the Student and the Law program of $9,118. Therefore, with the addition of the land purchase, the General Fund Reserve available for appropriation would be reduced to $284,818.
Assistant City Manager
Resolution No. 2002- ;
RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING RESOLUTION NO. 2001-45, THE BUDGET APPROPRIATION FOR FISCAL YEAR 02-03, FOR A BUDGET ADJUSTMENT TO THE CITY'S GENERAL FUND
WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council; and,
WHEREAS, on June 12, 2002 the City Council of the City of Rancho Palos Verdes adopted Resolution No. 2001-45, approving a spending plan and authorizing a budget appropriation for the 2002-2003 fiscal year; and,
WHEREAS, on June 16, 2001, the City Council authorized the Mayor and City Clerk to enter into an Agreement to Purchase Tax-Defaulted Property with the Los Angeles County Tax Collector for the purchase of a 17.44 acre vacant parcel adjacent to Del Cerro Park; and,
WHEREAS, on November 21, 2002, the City received notice from the Los Angeles County Tax Collector that the subject parcel is ready for transfer to the City, subject to the payment of $18,215.61 to the County; and,
WHEREAS, the City Council finds that the purchase of the property would expand the size of Del Cerro Park from nearly 4 acres to over 21 acres; could possibly provide a trail connection between the developed park site and the proposed Portuguese Bend Nature Preserve; and, may also assist the City in the completion of its Natural Communities Conservation Planning (NCCP) effort.
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:
Section 1: The following increase be made to the fiscal year 2002-2003 General Fund budget:
Tax Defaulted Property Purchase#102.510.80 $18,215.61
PASSED, APPROVED, and ADOPTED this 3rd day of December 2002.
State of California)
County of Los Angeles)ss
City of Rancho Palos Verdes)
I, Jo Purcell, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2002- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on December 3, 2002.