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HomeMy WebLinkAboutCC 4 SALE OF WTR SVCS 10-15-84 CONSENT CALENDAR NO. 4 10-15-84 DATE: - OCTOBER 5, 1984 FROM: SUBJECT: WILLIAM HUSTON, CITY MANAG£R BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PROPOSED SALE OF WATER SERVICE FACILITIES TO CITY OF SANTA ANA RECOMMENDATION: That the Tustin City Council, at their meeting of October 15, 1984, authorized the sale of ninety one water services to the City of Santa Rna in the amount of $56,645.66 subject to all procedures, as outlined-by the City Attorney's office. BACKGROUND: As previously directed by City Council, staff has pursued the potential sale of water service facilities within three parcels of land westerly of the Costa Mesa (Newport) freeway and as shown on the attached map labeled Figure 2 to the City of Santa Aha. Santa Ana has responded with an offer to purchase the following: Eighty seven services and facilities within Parcel 1. o Four services and facilities within Parcel 3. Santa Ana did not express an interest to purchase the sixty five services and facilities within Parcel 2 due to that parcel being located outside their city limits and within the unincorporated county territory. DISCUSSION': As a part of their investigation to purchase these facilities, Santa Ana hired the firm of A.S.L. Consulting Engineers to prepare an appraisal of said facilities. This appraisal resulted in the following values for the system; Parcel 1 $46,570.98 Parcel 3 1,114.55 and, constituted Santa Ana's initial offer to purchase the facilities. Staff re-evaluated the A.S.L. appraisal and established a revised value to the system by utilizing extended service life to pipelines, fire hydrants, services, etc. as follows: Parcel I $65,605.80 Parcel 3 1,13g.77 $66,745.57 PROPOSED SALE OF WATER SERVICE FACILITIES TO CITY OF SANTA ANA OCTOBER 5, 1984 PAGE 2 These revised figures were submitted to Santa Aha as a counter offer to their original proposal. After continued negotiation, it was determined by the staff's of-both cities that a fair and equitable price for the water service facilities within Parcel 1 and Parcel 3 to be $56,645.66 and it is requested that staff be authorized to proceed with the sale of ninety one (91) water services within Parcel No. 1 and No. 3 in the amount of $56,645.66. This sale should be made subject to all policies and procedures as outlined by the City Attorney's office. - Director of Public Works/City Engineer BL:jr PARCEL I ~ Tumthl Ave Well . !..~--. RETAIL AGENCY BDRY - ~.,~~co~=~uor, ' CITY OF TUSTIN IFigurel ~~ WATER MANAGEMENT PLAN