9/21/2021 - ITEM 3 - CONSIDERATION OF RESOLUTION REGARDING CENTRAL INVENTORY OF SURPLUS LAND PURSUANT TO SURPLUS LANDS ACTAGENDA ITEM NO. 3
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: September 21, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF RESOLUTION REGARDING CENTRAL INVENTORY OF
SURPLUS LAND PURSUANT TO SURPLUS LANDS ACT
RECOMMENDATION:
It is recommended that the City Council adopt the following Resolution:
RESOLUTION NO.2021-93 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA APPROVING A CENTRAL INVENTORY OF SURPLUS
LAND PURSUANT TO GOVERNMENT CODE SECTION 54221, DECLARING SUCH LANDS
ARE NOT NECESSARY FOR THE CITY'S USE, FINDING THAT SUCH DECLARATION IS
EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS
The California Surplus Lands Act ("SLA") requires local agencies to adhere to specific guidelines when
disposing of surplus public land. The state law (Government Code sections 54220 - 54234), was amended in
2019 with Assembly Bill (AB) 1486 (Statutes of 2019, Chapter 664) and AB 1255 (Status of 2019, Chapter
661), clarifying and strengthening reporting and enforcement provisions of the SLA to promote development
of affordable housing.
Pursuant to SLA, beginning April 1, 2021 local agencies shall report to California Department of Housing and
Community Development (HCD) each year a "central inventory of all surplus land". The City now needs to
submit the inventory to be compliant with the SLA law.
In addition, the SLA requires that prior to the City taking any action to dispose of (sell or lease) property, it
must declare the property to be either "surplus land" or "exempt surplus land".
The SLA's definition of exempt surplus land includes: (a) surplus land subject to Exclusive Negotiation
Agreement (ENA) or legally binding agreement, but the disposition of such land must be concluded by
December of 2021; (b) land held in the Community Redevelopment Property Trust Fund subject to Exclusive
Negotiation Agreement (ENA) or legally binding agreement, but the disposition of such land must be
concluded by December of 2022; (c) local agency declaration for one of the following reasons: land that is
transferred to another local, state or federal agency for affordable housing; small land parcels sold to an owner
of contiguous land which is less than 5,000 square feet, or less than minimum legal residential building lot
size, or has no record access and is less than 10,000 square feet in area; (d) property that is subject to a valid
legal restriction not imposed by the local agency that would prohibit housing (non-residential zoning is not a
valid legal restriction); (e) property that is too small for residential use; (f) property that is a former street or
easement that is conveyed to an adjacent property owner; and (g) property that is licensed or leased for one
year or less. None of the properties on the inventory list below qualify as exempt surplus property.
If the surplus land is not exempt, the following are the steps required to comply with the SLA:
1. City Council will need to adopt a resolution declaring the properties surplus land.
2. Provide Notice of Availability ("NOA") of surplus land for lease or purchase to local entities, housing
sponsors, and California Department of Housing and Community Development (HUD).
a. Entities have 60-days to respond to the NOA
3. If applicable, negotiate with entities desiring to purchase or lease surplus land in good faith.
a. The City has to comply with the minimum of 90-day negotiation period upon notice of interest by
an interested housing developer; if price and terms are not agreed to, City can proceed without
regard to SLA except that 15% of any new housing constructed must be restricted to affordable
rents or sale price.
A NOA must be given prior to the agency "participating in negotiations to dispose of the property". As set
forth in Government Code section 54222(f), "participating in negotiations" does not include the
commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents
not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request
for qualifications, development of marketing materials, or discussions conducted exclusively among local
agency employees and elected officials.
Notwithstanding the obligation to negotiate in good faith, the City is not required to sell or lease the property
to the interested entity, or to do so for less than fair market value. The City cannot prohibit residential use of
surplus land as condition of a sale or lease, nor require any design standards that would substantial negatively
affect viability or affordability of developing very low to moderate income housing.
If an agency fails to provide the proper notices, there is a significant penalty that requires a local agency to
forfeit 30% of the purchase/lease proceeds for the first violation and 50% of the sale price for any subsequent
violations.
DISCUSSION:
The City of West Covina is required to submit the City's central inventory list of all surplus land to HCD
annually. In addition, as the new SLA requirements are effective this year, staff is recommending declaring
City properties that may be considered for future development as surplus land. This will facilitate disposition
of City property for future projects. The following is the list of City owned properties to be declared surplus
land:
• City parking lot/structures parcels at Plaza West Covina —
o APN's: 8474-003-915, 8474-003-918, 8474-003-940, 8474-007-928, 8474-007-931, 8474-007-
932, 8474-007-933, 8474-007-934, 8474-007-935, 8474-007-939, 8474-007-940
o Site: 21.85-aces
o Description: Parking lot and parking structure parcels.
• City Yard Facility -
o APN:8468-016-904
Site: 8.27-acres
Description: The City Yard facilities include the maintenance office buildings, vacant former
chamber building, Fire Station #1 (anticipated to be demolished), unused automobile bays,
storage buildings/warehouses, and CNG/propane fueling stations.
It is recommended that the City Council approve the surplus land inventory list to be submitted pursuant to
Government Code section 54222 of the SLA and for the City to declare the City owned properties mentioned
above as surplus land and start the SLA process for those properties.
LEGAL REVIEW:
The City Attorney's Office has reviewed the attached resolution and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Adopt staff's recommendation; or
2. Provide alternative direction.
Prepared by: Paulina Morales, Assistant City Manager
Attachments
Attachment No. 1 - Resolution No. 2021-93
CITY Maintain and Enhance City Facilities and Infrastructure
COUNCIL Enhance the City Image and Effectiveness
GOALS & Engage in Proactive Economic Development
OBJECTIVES:
ATTACHMENT NO.1
RESOLUTION NO.2021-93
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA APPROVING A
CENTRAL INVENTORY OF SURPLUS LAND PURSUANT
TO GOVERNMENT CODE SECTION 54221, DECLARING
SUCH LANDS ARE NOT NECESSARY FOR THE CITY'S
USE, FINDING THAT SUCH DECLARATION IS EXEMPT
FROM ENVIRONMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND
TAKING RELATED ACTIONS
WHEREAS, the City of West Covina ("Cite is the owner in fee simple of certain real
Properties described in Exhibit "A," attached hereto and made apart of hereof ("Properties'); and
WHEREAS, under the Surplus Properties Land Act, Govermnent Code Sections 54220-
54233 ("Act'), surplus land is land owned in fee simple by the City for which the City Council
takes formal action in a regular public meeting declaring the land is surplus and not necessary for
the City's use. The land must be declared either surplus land or exempt surplus land; and
WHEREAS, under the Act, land is necessary for the City's use if the land is being used,
or is planned to be used pursuant to a written plan adopted by the City Council, for City work or
operations; and
WHEREAS, City staff has determined that the Properties are not suitable for the City's
use; and
WHEREAS, the City Council desires to declare that the Properties are surplus land and
not necessary for the City's use; and
WHEREAS, the Act requires that before the City Council disposes of the Properties or
engages in negotiations to dispose of the Properties, the City shall send a written notice of
availability of the Properties to certain designated entities; and
WHEREAS, the accompanying staff report provides supporting information upon which
the declaration and findings set forth in this Resolution are based.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are a substantive part of this
Resolution.
SECTION 2. The City Council hereby declares that the Properties are surplus land and not
necessary for the City's use. The basis for this declaration is that the Properties are underutilized,
any existing facilities are at the end of their useful life and will be relocated, and the City finds that
the surplus properties should be put to a more productive use.
SECTION 3. The City Clerk is hereby directed to send a notice of availability,
substantially in the form attached hereto as Exhibit ibit `B" and made a part of hereof to the entities
designated in Government Code Section 54222 ("Designated Entities") by electronic mail or by
certified mail
SECTION 4. This Resolution has been reviewed with respect to the applicability of the
California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ('CEQA').
City staff has determined that the designation of this Properties as surplus does not have the
potential for creating a significant effect on the environment and is therefore exempt from further
review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a
project as defined by the CEQA Guidelines Section 15378. Adoption of the Resolution does not
have the potential for resulting in either a direct physical change in the environment or areasonably
foreseeable indirect physical change in the environment. If and when any of the Properties is sold
to a purchaser and that purchaser proposes a use for the Properties that requires a discretionary
permit and CEQA review, that future use and project will be analyzed at the appropriate time in
accordance with CEQA.
SECTION 5. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA
Guidelines Section 15062.
SECTION 6. The officers and staff of the City are hereby authorized, jointly and severally,
to do all things which they may deem necessary or proper to effectuate the purposes of this
Resolution, and any such actions previously taken are hereby ratified and confirmed. Such actions
include negotiating in good faith in accordance with the requirements of the Act with any of the
Designated Entities that submit a written notice of interest to purchase or lease the Properties in
compliance with the Act.
SECTION 7. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective immediately.
PASSED, APPROVED AND ADOPTED this 21st day of September, 2021.
Letty Lopez-Viado
Mayor
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
iv wlr wl
Lisa Sherrick
Assistant City Clerk
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California,
do hereby certify that the foregoing Resolution No. 2021-93 was duly adopted by the City Council
of the City of West Covina, California, at a regular meeting thereof held on the 21st day of
September, 2021, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
EXHIBIT A
DESCRIPTION OF PROPERTIES
The land in the City of West Covina, County of Los Angeles, State of California, and is described
as follows:
1) City parking lot/structures parcels at Plaza West Covina —
APN's: 8474-003-915, 8474-003-918, 8474-003-940, 8474-007-928, 8474-007-931,
8474-007-932, 8474-007-933, 8474-007-934, 8474-007-935, 8474-007-939, 8474-007-
940
Site: 21.85-aces
Description: Parking lot and parking structure parcels.
2) City Yard Facility -
APN: 8468-016-904
Site: 8.27-acres
Description: The City Yard facilities include the maintenance office buildings, vacant
former chamber bolding, Fire Station #1 (anticipated to be demolished), unused
automobile bays, storage buildings/warehouses, and CNG/propane fueling stations.
EXI[HBIT B FORM NOTICE
(City Letterheod)
NOTICE OF AVAILABILITY OF SURPLUS
LAND
TO: Whom It May Concern
(Via Electronic Mail [and/or] Certified Mai I)
RE: Notice of Availability of Surplus Land in the City of West Covina Pursuant to California
Government Code Section 54220, et seq.
Pursuantto the provisions of California Government Code Section 54220, et seq., the City of West Covina hereby
notifies interested parties of the ava I I abil ity for lease or purchase of the fol Iowi ngsurplus City -owned la nd:
Properties Address:
Assessor Parcel Nos.:
Zoning:
General Plan Designation:
Current Use:
An entity or association desiring to purchase or lease the above -described surplus land for any of the purposes
authorized by Government Code Section 54222, must notify the City in writing of its interest in purchasingor
Ieasi ngthe land within 60days of the date of this Notice of Avai lability as indicated by the date set forth below.
PI ease send written notices of i nterest to:
City of West Covina
Attn: City Clerk
1444 West Garvey Avenue South
West Covi na, Ca I iforni a 91790
For f urther 1 nformation, pl ease send e-ma i I I nqui ri es to: at
or call at
By Date