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HomeMy WebLinkAboutCity Council Resolution 18-020 Re-approving the acquisition of fee title to a parcelRESOLUTION NO. 18-020 RESOLUTION OF THE CITY COUNCIL OF SARATOGA APPROVING PAYMENT FOR AND ACCEPTANCE OF PROPERTY INTERESTS NEEDED FOR THE QUITO ROAD BRIDGES REPLACEMENT PROJECT The City of Saratoga City is working with the Town of Los Gatos and the Santa Clara Valley Water District in seeking to replace two bridges on Quito Road with wider span structures that will allow a 100 -year design flow (Project) with funding through the Federal Highway Bridge Replacement and Rehabilitation (HBRR) Program. II. On August 20, 2014 the City Council adopted Resolution No. 14-057, in which it approved the Project and determined it was exempt from the California Environmental Quality Act following a duly noticed public hearing. III. Since approval of the Project, the City has completed design and identified specific real property that is necessary to acquire for the Project. The required property interests include a portion of a parcel for which there has been more than five years of non- payment of taxes, according to the County of Santa Clara. The City has applied to acquire this property, APN 407-16-008, from the County on the grounds of public necessity. The total cost of the acquisition is currently estimated to be approximately $5,200 and is not likely to exceed $5,800. IV. On March 21, 2018 the City Council adopted Resolution No. 18-009 concerning acquisition of various real property interests for the Project. This Resolution modifies and supersedes Resolution No. 18-009 with respect to the property described in Section III above, APN 407-16-008, and only with respect to that property. V. THEREFORE, BE IT RESOLVED that the City Council hereby: Approves acquisition of the property interests necessary for the Project, including fee title to APN 407-16-008, pursuant to an agreement substantially in the form of the attached Agreement to Purchase Tax -Defaulted Property; and 2. Delegates authority to the City Manager to execute the documents, agreements, and other instruments necessary to acquire the property for an estimated amount of $5,200, with authority to acquire for a maximum of $5,800. The estimated amount will be adjusted according to the actual closing date of the transaction; and 3. Authorizes the City Manager to accept the conveyance of those property interests, consistent with Government Code section 27281; and 4. Finds that the acquisitions authorized in this Resolution are exempt from the California Environmental Quality Act (CEQA) for the reasons set forth in Resolution 14-057 and the notice of exemption from CEQA that was filed with the County of Santa Clara on August 25, 2014; and Declares that Resolution No. 18-009 is of no force or effect with respect to APN 407-16-008. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 18"' day of April 2018 by the following vote: AYES: Mayor Mary -Lynne Bernald, Vice Mayor E. Manny Cappello, Council Members Howard A. Miller, Emily Lo, Rishi Kumar NOES: ABSENT: ABSTAIN: A T: /// DATE ora Pimentel,MMC, City Clerk <D -t ;('e 6Y -t IT c �YVW", J -6A , 2 Mary nnBernald, Mayor Y/ 1 1712-0 1-�6 s AGREEMENT TO PURCHASE TAX -DEFAULTED PROPERTY This agreement is made this 8th day of May, 2018 by and between the County of Santa Clara and City of Saratoga in accordance with provisions of California law Recitals WHEREAS, the County, a political subdivision of the State of California ("SELLER"), subject to the State Controller's approval, agrees to sell to City of Saratoga, a municipal corporation, as a taxing agency ("PURCHASER") under the terms stated below, the real property described in Exhibit "A" and Attachment "A-1" of this agreement ("PROPERTY"), and, WHERES, the PROPERTY is tax -defaulted and is subject to the power of sale by the Department of Tax and Collections for the nonpayment of taxes NOW THEREFORE, in consideration of the mutual promises set forth herein, and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually agree as follows 1 Approval by the State Controller California Revenue and Taxation Code section 3795 requires this agreement to be submitted to and approved by the California State Controller before it becomes effective This agreement is not in effect until the California State Controller's authorization is received and the noticing process is complete (pursuant to Revenue and Taxation section 3802) ("EFFECTIVE DATE") 2. Purchase Price. The PURCHASER agrees to pay the purchase pnce for the PROPERTY as defined in Revenue and Taxation Code section 3793 1 ("PURCHASE PRICE") The PURCHASE PRICE shall include the following. a All defaulted taxes and assessments and all associated penalties and costs, redemption penalties and fees incurred through the month of the sale, the cost of giving notice of the notice of agreement (pursuant to section 3800 of the Revenue and Taxation Code), the cost of publishing or posting the notice of agreement, the cost of the auction (pursuant to Revenue and Taxation Code sections 4672 and 4672.1), the rescission or record deed fee, costs of the sale pursuant to California Revenue and Taxation Code section 3793.1(a). The total of all of these items is estimated at $5,200 00 based on an estimated sale date in August 2018 See Exhibit "A" Once the Department of Tax and Collections has received an executed copy of this agreement from the State Controller, the final amount will be determined based on the EFFECTIVE DATE of this agreement as provided in Revenue and Taxation Code § 3802. 3. Other Expenses The PURCHASER shall pay other expenses in addition to the PURCHASE PRICE, including but not limited to the cost of proceeding to obtain a clear title to the PROPERTY prior to purchase, and the expenses incurred in the payment, compromise, or other method of removal of any liens or adverse claims against the PROPERTY 4 Payment PURCHASER agrees to make payment in full of the PURCHASE PRICE within 21 days after the EFFECTIVE DATE Payment shall be in cash or certified check payable to the Department of Tax and Collections Upon receipt of said sums by the Department of Tax and Collections, the Department of Tax and Collections shall execute and record a deed Page 1 of 7 ORIGINAL VENDOR'S COPY MAY 0 8 2018 1' conveying the title to the PROPERTY to the PURCHASER and after recordation the deed will be returned to the PURCHASER by the County Clerk/Recorder 5 No Representation The SELLER makes no representation or warranty concerning the condition of title to the PROPERTY. Additionally, the SELLER makes no representation concerning the physical condition of the PROPERTY and the PURCHASER acknowledges that it is not relying upon any statements or representations of the SELLER concerning the PROPERTY and is purchasing the PROPERTY in its 'as is' condition 6 Intent of Use The public purpose and specified intent of use set forth by the PURCHASER for the PROPERTY is as follows. The City seeks to acquire the Property because it is necessary for the City's Quito Road bridge replacement project, which is currently underway This project will replace two bridges located on the border of the City of Saratoga and the Town of Los Gatos Both bridges cross over the San Tomas Aquino Creek on either side of the intersection of Quito Road and Old Adobe Road The current bridges were constructed in 1915 and do not meet current State design standards or seismic safety criteria for bridges The new bridges would meet current design and seismic standards. Additionally, the existing bridges are only 23 feet wide The new bridges would be expanded to safely accommodate vehicle and pedestrian traffic on the bridges The City needs fee ownership of the Property to accommodate the footings required for one of the new bridges Construction is scheduled to begin in the spring of 2018 The PURCHASER agrees to use the parcel within the scope of its legal authority 7 Jurisdiction Boundaries If the PURCHASER is a `district' as defined by Government Code section 56036(a) the PROPERTY must be within its jurisdiction, unless a letter from purchasers' legal counsel stating that either its sphere of influence has been extended by the Local Agency Formation Commission (LAFCo) to include the PROPERTY or the PROPERTY may be purchased without conflict with sphere of influence parameters 8 Real Property Taxes, Fiscal Year 2018-2019. The PURCHASE PRICE does not include the property taxes for Fiscal Year 2018-2019 The PURCHASER shall be responsible for payment in full of the Fiscal Year 2018-2019 property taxes for the PROPERTY in addition to the PURCHASE PRICE. 9 Treated as a Single Transaction. The SELLER shall sell the PROPERTY as a single transaction to the PURCHASER in consideration of the receipt of the payments listed in this agreement 10. Redemption. If the PROPERTY is redeemed prior to the EFFECTIVE DATE of this agreement, this agreement shall be null and void as to the PROPERTY Notwithstanding the foregoing, the agreement shall be binding and shall remain in full force and effect with respect to any remaining parcel(s) 11 Void/Incomplete Purchase This agreement shall become null and void and the right of redemption restored upon the failure of the PURCHASER to comply with the terms and conditions of this agreement prior to the tax deed recordation The PURCHASER will be required to reimburse the Department of Tax and Collections for the costs for producing notice, publication, and actual costs incurred for preparing and conducting the agreement sale if these expenses have already been incurred. 12 Indemnity The PURCHASER shall indemnify the SELLER from and against any and all liability, loss, costs, damages, attorney's fees, and other expenses which the SELLER may sustain or incur by reasons of a challenge to validity of the tax default sale of the PROPERTY Pursuant to California Revenue and Taxation Code section 3809, a proceeding Page 2 of 7 ORIGINAL r based on alleged invalidity or irregularity of any proceeding instituted can only be commenced within one year after the date of execution of the Department of Tax and Collections' deed 13 Environmental Condition of Property The PROPERTY acquired pursuant to this agreement may contain hazardous wastes, toxic substances, or other substances regulated by federal, state, and local agencies. The SELLER in no way whatsoever assumes any responsibility, implied or otherwise, and makes no representations that the PROPERTY is in compliance with federal, state, or local laws governing such substances The SELLER in no way assumes any responsibility, implied or otherwise, for any costs or liability of any kind imposed upon or voluntarily assumed by the PURCHASER or any other owner to remediate, clean up, or otherwise bring into compliance according to federal, state, or local environmental laws the PROPERTY purchased. 14 CERCLA The SELLER and the PURCHASER agree that under United States Code, title 42, section 9601(20)(D), the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) expressly excludes local and state governments from clean up liability for properties they acquire as a result of tax delinquencies Notwithstanding this provision, the PURCHASER shall defend, indemnify, and hold harmless the SELLER, its board of supervisors, officers, claims, actions, liabilities, losses, damages, and costs, including reasonable attorneys' fees, arising out of or resulting from the performance of this agreement, regardless of whether caused in part by a party indemnified hereunder, including but not limited to allegations that the SELLER and/or the SELLER's officers, directors, agents, employees, or volunteers are liable for costs or other charges related to the remediation, clean up, or other work necessary to bring the PROPERTY under this agreement into compliance with federal, state, or local environmental laws 15 Taxing Agency Will Not Receive Distribution of Sale Proceeds If said PURCHASER is a taxing agency, as defined by California Revenue and Taxation Code section 121, it is not entitled to a portion of the distribution of the sale proceeds. // // // // 1/ // // 1/ // Page 3 of 7 ORIGINAL The undersigned hereby agree to the terms and conditions of this agreement and are duly authorized to sign for said agencies. This document is being executed in counterpart each of which constitutes an original PURCHASER: / v2414, a &dalt4 ora Pimentel, City Clerk (D-e..ocdtiUti APPROVED AS TO FORM AND LEGALITY. ---4)1s/1 Sarah H. Sigman, City Attorneys COUNTY/SELLER: ATTEST Megan Do _ Clerk it) say, City . nager Signed and Certrfied that a copy of this document has been delivered by electronic or other means to the President, Board of Supervisors. �.�►•�7 NAY :2 MAY 0 8 2018 �+. 2�.,� the Board of Supervisors S Joseph Simitian, President, Board of Supervisors APPROVED AS TO FORM AND LEGALITY. n E.P. Liem, Deputy County Counsel STATE CONTROLLER'S OFFICE: Pursuant to the provisions of California Revenue and Taxation Code section 3795, the Controller approves the foregoing agreement this 4'11.1 day of /4_4-7.e_. , ZU/f BETTY T YEE, CALIFORNIA STATE CONTROLLER By -i'7''14—? JACLYN MCQUEEN, MANAGER Government Compensation and Property Tax Standards Section Attachments to this agreement Exhibit "A" - Attachment "A-1" Page 4 of 7 ORIGINAL DESCRIPTION EXHIBIT "A" FIRST YEAR DEFAULT PURCHASE DEFAULTED NUMBER PRICE 407-16-008 2005/2006 407-16-008 $5,200.00 (Legal Attached, A-1) INTENDED USE The City seeks to acquire the Property because it is necessary for the City's Quito Road bridge replacement project, which is currently underway This project will replace two bndges located on the border of the City of Saratoga and the Town of Los Gatos. Both bridges cross over the San Tomas Aquino Creek on either side of the intersection of Quito Road and Old Adobe Road The current bndges were constructed in 1915 and do not meet current State design standards or seismic safety criteria for bridges The new bridges would meet current design and seismic standards. Additionally, the existing bridges are only 23 feet wide The new bridges would be expanded to safely accommodate vehicle and pedestrian traffic on the bridges The City needs fee ownership of the Property to accommodate the footings required for one of the new bridges Construction is scheduled to begin in the spnng of 2018 Page 5 of 7 ORIGINAL Legal Description for APN• TRA 15-001 Attachment "A-1" 407-16-008 CITY SARATOGA COUNTY• SANTA CLARA THE PARCEL SHOWN AS APN 407-16-008 ON ASSESSOR'S PARCEL MAP, TAX ROLL YEAR 2016 SAID PARCEL IS BOUNDED TO THE NORTH BY THE NORTHEASTERLY PROLONGATION OF SANTA CLARA VALLEY WATER DISTRICT PARCEL AS DESCRIBED IN DEED NO 4802405, RECORDED IN BOOK A976, PAGE 52 SANTA CLARA COUNTY RECORDS, TO THE WEST BY THE NORTHEASTERLY LINE OF QUITO ROAD, 40' WIDE; TO THE SOUTH BY THE NORTH LINE OF PARCEL 2 AS DESCRIBED IN DEED RECORDED IN BOOK A968 PAGE 317, SANTA CLARA COUNTY RECORDS, TO THE EAST BY THE NORTHWESTERLY LINE OF PARCEL AS DESCRIBED IN DEED RECORDED A976 PAGE 52, SANTA CLARA COUNTY RECORDS Page 6 of 7 ORIGINAL OFFICE OF COUNTY ASSESSOR SANTA CLARA COUNTY CALIFORNIA 8001c 407 PACE 16 LAY/YOKE 1 Std(- ASSESSOR GREW q V =writ poor M LoopMA raw R A f. 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