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CC SR 20181107 J - Tax Defaulted Property PB Landslide Area APN 7572-008-014RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 11/07/2018 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to sign the purchase agreement for a tax-defaulted property in the Portuguese Bend landslide area (APN 7572-008-014) RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor and City Clerk to sign Chapter 8 Agreement 2803 to purchase a tax-defaulted property in the Portuguese Bend landslide area (APN 7572-008-014) from the Los Angeles County Treasurer and Tax Collector. FISCAL IMPACT: The County has set the purchase price for the property at $8,137. Additional estimated costs include approximately $2,000 in County processing fees and $2,000 for a Phase 1 Environmental Site Assessment, for a total expected cost of $12,137. Amount Budgeted: $25,000 Additional Appropriation: N/A Account Number(s): 101-400-2999-8803 ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analyst REVIEWED BY: Gabriella Yap, Deputy City Manager APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft Chapter 8 Agreement 2803 (page A-1) BACKGROUND AND DISCUSSION: On September 4, 2018, the City Council authorized Staff to pursue the acquisition of three (3) tax-defaulted parcels in the Portuguese Bend landslide area for landslide remediation purposes (click here to review the previous agenda report). Staff submitted the necessary application and additional materials to the Los Angeles County Treasurer and Tax Collector (TTC) on September 10, 2018. On October 11, 2018, Staff received the draft Chapter 8 agreement for these properties from TTC (Attachment A). However, on October 15, 2018, Staff received a subsequent letter from TTC advising that two (2) of the properties had been redeemed by their owner (APNs 7572-008-022 and 7572- 008-023). An aerial photo depicting the redeemed and remaining properties is provided below. Based upon the City Council’s direction on September 4, 2018, Staff recommends proceeding with the purchase of the remaining property. 1 TTC has set a purchase price for APN 7572-008-024 at $8,137. Additional costs expected to complete the purchase include: • County processing fees: ±$2,000 • Phase 1 Environmental Site Assessment: ±$2,000 There is currently $25,000 allocated in the FY18-19 budget for property acquisition, but Staff expects that the sale is unlikely to be completed sooner than FY19-20. TTC requires that the signed purchase agreement be returned no later than December 3, 2018. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not authorize the Mayor and City Clerk to sign Chapter 8 Agreement 2803. 2. Direct Staff to further research issues related to this acquisition, and bring this matter back to the City Council for a final decision on or before November 20, 2018. 2 DR A F T A-1 DR A F T A-2 DR A F T A-3 DR A F T A-4