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HomeMy WebLinkAboutFresno Police Dept, Dept of Public Utilities Wastewater Mgmt Interdepartmental MOU - 4-5-24 DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 INTERDEPARTMENTAL MEMORANDUM OF UNDERSTANDING This Interdepartmental Memorandum of Understanding (Agreement) is entered into 2024 (Effective Date), by and between the Fresno Police Department (FPD) and the Department of Public Utilities (DPU), Wastewater Management Division, all of which are departments of the City of Fresno, a California municipal corporation (collectively, the Parties). RECITALS A. The City owns property at 6375 W. Central Avenue, Fresno, California 93706, which is currently operated as the Fresno Police Department Regional Training Center (Regional Training Center). B. The City also owns property at 6379 W. Central Avenue, Fresno, California 93706, Assessor's Parcel number 327-040-31 (Subject Property), adjacent to the Regional Training Center. C. The Subject Property is currently under the use and control of DPU's Wastewater Management Division. In 2006, FPD and DPU entered into an Interdepartmental Memorandum of Understanding which, among other things, granted FPD an option to acquire control and use, for fair market value, of the Subject Property. The option expired but FPD now wishes to obtain use and control of the Subject Property. D. DPU has determined that the Subject Property has no beneficial use to the Department, Division, or wastewater ratepayers, due to the limited value of the property in its current state. E. FPD has determined that due to the proximity to the Regional Training Center there is an identified beneficial use for the FPD. F. Consistent with its obligations to the wastewater ratepayers, DPU's Wastewater Division must receive a fair return on the Subject Property, as it was purchased and has been maintained by wastewater enterprise funds. G. The Subject Property's fair market value has been determined, through the City of Fresno's waiver valuation process, which considered recent sales of comparable properties, income data, and depreciated replacement costs as appropriate. Full consideration was given to zoning, development potential, and the income that the Subject Property is capable of producing. H. The Parties desire to memorialize a change in the use and control of the subject property from DPU to FPD, and to effectuate the transfer of the fair market value of the property from FPD to DPU's Wastewater Management Division. DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 NOW, THEREFORE, the parties have entered into this Memorandum to establish the terms as follows: MEMORANDUM The Parties agree as follows: 1. Description of Subject PropertV• The Subject Property is approximately 2.28 acres of real property commonly known as 6379 W. Central Avenue, Fresno, California, Assessor's Parcel number 327-040- 31. 2. Fair Market Value. The City has determined that the fair market value of the Subject Property is $22,000.00, as detailed in Exhibit A. DPU has determined that the Subject Property has limited value in its current state. The Subject Property contains neither irrigation for farming, nor power for other uses. The location is undesirable as it fronts the Regional Training Center and faces City ponding basins. Upon execution of this MOU, the FPD will request that the Finance Department effectuate a transfer of this amount to DPU, Wastewater Management Division. It has been determined that$22,000.00 constitutes a fair rate of return on the transfer of this property. 3. Fund Transfer. 4. Upon approval of this MOU by the City Manager, this MOU will be forwarded to the City Controller to memorialize the transfer of responsibility for the Subject Property from DPU to FPD. Upon adoption of the MOU, the Finance Department will effectuate the transfer of the fair market value from FPD to DPU. 5. Utilities. Commencing on the Effective Date of this MOU, FPD shall be responsible for and shall pay all utilities costs associated with its use of the Subject Property including, but not limited to, all electricity, natural gas, telephone, and any other utility service it may require. DPU shall bear no further responsibility for any costs associated with the use or maintenance of the Subject Property. 6. Ongoing Maintenance. Commencing on the Effective Date of this MOU, FPD shall be responsible for the performance of all maintenance, including weed abatement, necessary for the upkeep of the Subject Property. All costs associated with the ongoing maintenance shall be with FPD and DPU shall have no obligation, financial or otherwise, to maintain the Subject Property. DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 7. Taxes and Assessments. If any taxes, general assessments, and/or special assessments, may be levied upon or assessed against the Subject Property after the Effective Date of this MOU, FPD shall be responsible for such charges and any interest therein. This clause does not waive FPD's rights to contest the validity of any tax or assessment that may be imposed. DPU shall not be responsible for paying any taxes or assessments following the Effective Date of this MOU. IN WITNESS WHEREOF, FPD and DPU, have entered into and executed this INTERDEPARTMENTAL MEMORANDUM OF UNDERSTANDING as of the day and year first above written. CITY OF FRESNO CITY OF FRESNO A municipal corporation Department of Public Utilities DocuSigned by: DocuSigned by: B 4/4/2024 B L-1 3/20/2024 y yr Georgeanne A. White Brock D. Buche, PE, PLS City Manager Director of Public Utilities APPROVED AS TO FORM: CITY OF FRESNO ANDREW JANZ Fresno Police Department City Attg ► DocuSigned by: Mad by: �� r �Kjq�,��/4/2024 By. _ 2/9/2024 By. Paco Baiderrama J:ennTife"r"Pr4buintanilia Senior Deputy City Attorney Chief of Police ATTEST: TODDpS��.IT�ERMER, CMC City IRLIS'lptd by: By: 6MA AA. PaV & 4/5/2024 Bruno Parra Deputy Exhibit A—Waiver Valuation APN 327-040-31 Exhibit B—Assessors Page APN-327-040-31 Page 3 DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 Exhibit A AP#: 327-040-31 City oI REM IQC119LO Ilk 1—,\\I/— rn�� ��i►� PUBLIC WORKS DEPARTMENT City Hall Scott L.Mozier 2600 Fresno Street,41'Floor Public Works Director Fresno,California 93721 Ph.(559)621-8650 FAX(559)488-1045 www.fresno.aov WAIVER VALUATION SUMMARY STATEMENT BASIC DATA PROJECT: TM00001 ASSESSOR'S PARCEL NUMBER (APN): 327-040-31 OWNER: City of Fresno (WMD) PROPERTY LOCATION: No Situs Address APPLICABLE ZONING: PI CURRENT USE OF SUBJECT Vacant Land PROPERTY: Vacant Land HIGHEST AND BEST USE OF SUBJECT PROPERTY: Public Land DATE OF VALUATION 07/18/2023 PROPERTY TO BE ACQUIRED: ALL [X] PART[ ] FEE ACQUISITION: ± 2.28 acres IMPROVEMENTS TO BE ACQUIRED: N/A BASIS OF WAIVER VALUATION The market value for the property to be acquired is based upon a waiver valuation prepared by Joshua Marple,City of Fresno Public Works Department Senior Real Estate Agent, using local, comparable sales. Recent sale of comparable properties,income data,and depreciated replacement costs are utilized as appropriate. Full consideration is given to zoning, development potential, and the income that the Subject Property is capable of producing. There are three approaches to value: 1. The Market Approach for the Subject Property is based on the consideration of comparable sales which sold within a reasonable time prior to the date of valuation,at a range of$6,000.00 to$17,000.00 per acre. The principal transactions used as comparable sales relied upon as the basis for supporting the determination of value are attached to this Waiver Valuation Summary Statement. 2. The Cost Approach is based in part on a replacement cost new of improvements, less depreciation. This approach was not utilized in this analysis since no structural improvements will be affected. 3. The Income Approach is based on consideration of the income producing potential of the property. This approach was not utilized in this valuation process as it was deemed inapplicable to this specific case. Page 1 of 4 DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 AP#: 327-040-31 VALUATION In Fee: Land: 2.28 acres x $9,489.00 per acre = $21,634.92 Total Land Value: $21,634.92 Improvements: None Total Improvement Value: $0.00 Severance Damages: None $0.00 Benefits: None $0.00 Total Damages/Benefits: $0.00 TOTAL JUST COMPENSATION: $21,634.92 Construction Contract Work: N/A Total Just Compensation for this Acquisition: (ROUNDED) $22,000.00 TWENTY-TWO THOUSAND DOLLARS AND 00/100 Page 2 of 4 DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 AN: 327-040-31 This summary of the basis of the amount offered as just compensation is presented in compliance with Federal and State laws and has been derived from a Waiver Valuation prepared by the City of Fresno Real Estate Agent, which includes supporting sales data and other documentation. The Waiver Valuation is hereby confirmed approved and accepted by this agency and a purchase offer based thereon is hereby approved and authorized. City of Fresno Recommended for Approval for Purchase and Acquisition: By: 5uuzd Date: August 9, 2023 Nancy Bru , Supervising Real Estate Agent Att: Comparable Sale List Page 3 of 4 DocuSign Envelope ID:237EFB6E-C640-4DB1-9217-BOD77F7AAOF3 Aft: 327-040-31 COMPARABLE SALES CMA Report Sorted by display order Listings as of 711812023 8:46:15 AM Properly Type:Land/Lots Transaction Type:Sale County:Fresno Status:Sold(6/3012022 or after)Price:50,000 or less Lot Size:100 ac to 5 00 ac Page 1 Land/Lots Sold Us"d APN Address City Acre Wt Date $/Acre DOW CDOM Orig Price List Price Sale Price SP h LP ST7122 093020D2 000 Jayne Ave 0minga 20700 20700 ac 04%Q2 1685990 256/405 45,1100 34.900 34,900 1003F 575186 13818022 28617 IGmbedy Rd Tollhouse 4A200 192535 1 08105/22 859729 95195 45,000 45,000 38,000 84 44s 592481 19046049 286 Sassafras Ln Squaw Valley 4.8600 4.8600 ac 0511523 5967.08 2525 29,000 29,000 29,000 TUN 574634 19043053 Thistle Ln Squaw Valley 4.1200 4.1200 ac 08/1722 849515 1241124 40,000 40,000 35,000 87.50s 592030 18535042S 0 Oder Ln Sgtraw Valley 4.6500 202554 sf 0510323 752688 2525 39,000 39,000 35,000 89 74s Listing Count 5 Averages 4,02 949 26 1 W 25 39180o 37,580 34.390 92.31 High 38,000 Low 29,000 Median 354000 Property Type Count 5 Avoregtw 4,92 9489.26 1051135 3916M 37,580 34,390 Page 4 of 4 SUBJECT PHOTOS 7/17/2023 'N t DocuSign Envelope ID:237EFB6E-C640-4D81-9217-BOD77F7AAOF3 I IN SUBJECT PHOTOS 7/17/21 ;yy rr i r ■■ ti• - t `'pry• 'i•��•�(_•,._ '��.'.,.;••• 'cv=ti� ,,,`:;�` - :�',. 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