Agenda Packet_2022-11-01 - Laserfiche WebLink

Home Browse Search

Purchase Agreement for Future Water Resources and Park Facilities November 1, 2022 Page 2 The acquisition of the subject property would allow the City to add new groundwater wells adjacent to the aging infrastructure and maintain the same level of service to the community, while also meeting regulations regarding siting of new wells relative to existing wells. The 2.5-acre lot is primarily used as an unpaved parking lot with a recently vacated small commercial building. The site more than satisfies the area requirements for future water infrastructure. PWA further proposes that any excess area not required for water facilities be utilized as public open space or developed into a future park. Funds for the purchase of the property would come from both the Water Enterprise and Revive Santa Ana Program funds for park acquisition. An offer to purchase was made for the subject property based on the appraised value by a state -licensed real estate appraiser, and was accepted by the property owner. The purchase price for the acquisition is $10,500,000 as shown in the corresponding Purchase and Sale Agreement (Exhibit 2). The Seller has agreed to split closing costs and escrow fees, which are anticipated not to exceed $250,000, bringing the total anticipated purchase expenditure to a not -to -exceed total of $10,750,000. The approval of the amendment to the Fiscal year 2022-23 Capital Improvement Program will officially incorporate this project into the program (Exhibit 3). ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT Funds for this action have been transferred from previously appropriated funds under Water Resources capital projects to the new West Station Well Project (No. 23-6477) and are available for expenditure in the current Fiscal Year 2022-23 as shown below. Water Resources will continue to pursue grant funding to offset the cost of the purchase price and future infrastructure improvement costs. Funds Transfer Fisher Park Neighborhood Water Main Improvements (Project No. 19-6429): $2,635,000 Euclid Water Main Improvements (Project No. 21-6460): $2,445,000 Fairview Water Main Improvements (Project No. 21-6464): $2,445,000 Fiscal Accounting Unit Fund Accounting Unit, Amount Year - Account # Description Account Description 2022-23 06617647-66100 Acquisition & Water Utility Capital $7,525,000 (23-6477) Construction Projects, Land City Council 7-2 11/1/2022