Title
Adoption of Resolution Amending the General Fund and the Capital Improvement Program Budget for Fiscal Year 2018-19 for the Jean Sweeney Open Space Park Project to Fund Immediate Possession of Four Remnant Parcels Totaling Approximately 2.8 Acres Owned by Union Pacific; and
Recommendation to Direct the City Attorney to Deposit the Sum of $1,098,000 with the Condemnation Deposits Fund and Seek an Order for Prejudgment Possession of the Subject Property. (Recreation and Parks 310)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The Jean Sweeney Open Space Park Project (Sweeney Park Project) consists of a planned 25-acre park bounded by Constitution Way, Atlantic Avenue, and Sherman Street on predominantly former Alameda Beltline Railroad property. On September 4, 2018, the City Council authorized a resolution of necessity to condemn four remnant parcels totaling approximately 2.8 acres of the 4.52 acres owned by Union Pacific that are required to complete major public access and infrastructure components of the Sweeney Park Project. Without the remnant parcels, a significant portion of the existing residential neighborhood to the south of the Jean Sweeney Park Project will be cut off from any direct public access to the park and the gateway to the Cross Alameda Trail at Constitution Way will not be completed to national “best practice” standards for pedestrian and bicycle access and safety.
On September 4, 2018, the City Council directed staff to bring a budget resolution to allocate funds required for immediate possession of the 2.8 acres property.
BACKGROUND
The Sweeney Park Project consists of a planned 25-acre park bounded by Constitution Way, Atlantic Avenue, and Sherman Street. The site is the former Alameda Beltline Railroad property that was secured by the City due to the advocacy efforts of long-time resident Jean Sweeney.
The City of Alameda needs to acquire four remnant parcels totaling approximately 2.8 acres of the 4.52 acres owned by Union Pacific that were not part of the Alameda Beltline acquisition to complete major public access components of the Sweeney Park Project, including public access for the southern neighborhood, utility connections for the middle and western phases of the park and permanent connection to the Cross Alameda Trail to the west (Exhibit 1).
On September 4, 2018, the City Council adopted Resolution No. 15429, a resolution of necessity to condemn the needed remnant parcels (the Subject Property) for the Sweeney Park Project. At that same meeting, the Council directed staff to return with a budget resolution authorizing allocation of the funds required for prejudgment possession of the Subject Property.
Construction is nearing completion on the second phase of the park, which consists of the eastern 8-acres near Sherman Street, which includes a natural playground, parking lot, restroom, open lawn, large picnic pavilion and smaller picnic areas throughout.
DISCUSSION
As mentioned above, on September 4, 2018, the City Council adopted a resolution of necessity to condemn the Subject Property for the Sweeney Park Project. An eminent domain acquisition would allow the City to acquire only the parcels needed for park use and to take title without Union Pacific’s Use Restrictions.
Allocating these funds, allows the City Council to seek an order for prejudgment possession immediately. Before the motion is filed, the City must deposit the appraised amount of $1,098,000 with the Condemnation Deposit Fund with the State Treasurer’s Office in Sacramento. If approved, the City is anticipating possession of the Subject Property within the next four months.
These funds will be appropriated from the General Fund reserves. The total requested amount also includes a conservative maximum amount of legal fees expected for the eminent domain proceedings.
FINANCIAL IMPACT
The Sweeney Park Project is accounted for in projects 91309 in the 2017-19 Capital Improvement Program Budget. The City’s General Fund has sufficient reserve to acquire the relevant property from Union Pacific and make the deposit of the appraised amount of $1,098,000 immediately. In addition, staff recommends that the legal fees for the eminent domain proceedings be directly allocated to the project. These fees, together with estimated expert witness fees, are conservatively estimated at $241,000. If these legal proceedings take less resources than anticipated, then any unexpended funds will be returned to the General Fund. The total contribution from the General Fund is $1,339,000.
|
Fund/Account |
Project |
Amount |
|
General Fund (001): |
|
|
|
Increase Transfer Out |
|
$1,339,000 |
|
Capital Improvement Projects (310): |
|
|
|
Increase Transfer In |
91309 |
$1,339,000 |
|
Increase Land Acquisition |
91309 |
$1,098,000 |
|
Increase Professional Services |
91309 |
$241,000 |
Upon possession of the Subject Property by the City, the City will become responsible for the costs to maintain these parcels. Since the entire park will be opened to the public, new fencing will be installed to secure areas that are not yet safe in addition to fencing off the remaining Union Pacific owned parcels. The cost of the remaining site clean-up will be incorporated into the next two park construction phase budgets. The cost of the fence is already included in the FY 2018-19 Parks Maintenance General Fund Budget. Ongoing annual maintenance costs are projected to be $5,000 - $10,000 annually and will be absorbed in the current FY 2018-19 Park Maintenance General Fund Budget and included in future maintenance budgets.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Sweeney Park Project is consistent with the Jean Sweeney Open Space Park Master Plan approved by the Council on July 15, 2014 and the Jean Sweeney Open Space Park Design Development Plan approved by the City Council on July 5, 2016.
ENVIRONMENTAL REVIEW
On July 15, 2014, by Resolution No. 14955, the City Council adopted a Mitigated Negative Declaration for the Jean Sweeney Open Space Park Master Plan and made findings, based on the initial study and any comments received, that the project has minimal environmental impacts, that those that were identified are related to the construction period (e.g. dust, construction traffic, etc.), and mitigations are recommended to minimize those impacts. No further environmental review is necessary pursuant to the California Environmental Quality Act (CEQA).
RECOMMENDATION
Adopt a Resolution amending the General Fund and the Capital Improvement Program Budget for Fiscal Year 2018-19 for the Jean Sweeney Open Space Park Project to fund immediate possession and directing the City Attorney to deposit the sum of $1,098,000 with the Condemnation Deposits Fund and seek an order for prejudgment possession of the Subject Property.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Map of Remnant Parcels