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HomeMy WebLinkAbout06/01/1992, 6 - STENNER CANYON MOBILEHOME SALE AND DISPOSITION I�IllnlY�lll�lll�lllll II MEETING GATE: City of San . _.IS OgIspO June 1, 1992 COUNCIL AGENDA REPORT ITEM NUMBER: 45 FROM: William T. Hetland Utilities Director SUBJECT: Stenner Canyon Mobilehome Sale and Disposition CAO RECOMMENDATION: By motion, reject Mr. Glick's request to lease City property in Stenner Canyon. Background. The City historically had a house in Stenner Canyon for the Water Treatment Plant Supervisor for the purpose of being able to respond quickly to emergencies. The old deteriorated house was replaced by a mobilehome purchased by the City for $31,366 in August, 1985. The departure of Allen Short, former Water Division Manager- and implementation of newer technology (telemetry, controls, alarms and extended staff hours), led to staff's recommendation to surplus the property in late 1990. The double-wide mobilehome near the Water Treatment Plant .in Stenner Canyon was declared surplus and sold by the City auctioneer on December 1, 1990, for a price of $21,000. The original purchaser decided the mobilehome would be too expensive to move. He subsequently sold it to the second bidder, Mr. Ken Glick. At the time of purchase, the new owner was informed that a condition of purchase was the removal of the mobilehome from City property. Ken Glick owns property adjacent to the City's property, and staff's understanding was that the mobilehome was to be used to provide housing for his ranch foreman. Staff met with Mr. Glick in June, 1991, so that he could explain why the mobilehome was not being moved and to discuss his request regarding a. lease of City property. Mr. Glick felt that he and the City would mutually benefit from such a relationship because the City would be gaining monthly revenue, while he would have additional time to pursue a building permit for a pad on his nearby property and his proposed tenant could provide security for the Stenner Canyon Road. Staff researched the possibility of a lease, contacting a number of mobilehome parks in the City to develop a basis for rent and utilities. Staff also contacted the County Planning Department to ascertain how long such a lease would be necessary. The County informed our staff that Mr. Glick could have a building permit within a short time period-not more than two months. At that point, we mailed Mr. Glick a letter providing him four months to make the necessary arrangements for the removal of the mobilehome from City property. The Mayor has asked that this matter be placed on the Councilagenda for determination by the Council. ������►�►ii��lilllill��►$���III city of San L.,S osIspo COUNCIL AGENDA REPORT Sterner Canyon Mobilehome Sale and Disposition June 2, 1992 Page 2 Analysis. i Staff reviewed the feasibility of entering into a lease with Mr. Glick for the subject property. Based on this analysis, staff identified the following concerns: 1. It wasa condition of the sale that the mobilehome be moved to another site. The I Utilities staff does not feel they are qualified to act as property managers, to develop and administer real property leases. It has been our previous experience that trying to assume such responsibilities outside our "normal" operations is operationally disruptive and not financially sound. The very small income derived from rent does not warrant city staff time nor does it have any positive impact on the overall water fund budget. I 2. The County initially indicated that Mr. Glick could obtain a building_permit. This was the primary reason cited for the City developing a lease. On what basis and for what length of time should the City lease the property to Mr. Glick, if he j can obtain a building permit for the pad he needs to permanently locate the mobilehome on his property? I 3. The adjacent garage cannot be a part of an,, lam. Water treatment tools and supplies are secured in the garage and will continue to be, so staff cannot lease the structure to Mr. Glick. Staff is not certain if this impacts Mr. Glick's perception of the desirability of a lease arrangement with the City. 4. Water service to the mobilehome is a problem. The previously pumped water service to the mobilehome has been disconnected. A gravity water system to the mobilehome still exists, but the quality of the water is not tested. Since the mobilehome is not within the City sampling areas for meeting public health requirements, it would probably require additional sampling. This would result in additional sampling and laboratory analysis costs. 5. Fire protection. No fire hydrants exist at the site to provide fire protection. 6. Service outside City limits. City policy is not to provide utility service to properties outside the City limits. To lease this property and provide water service would require a waiver of this policy. A water meter would need to be installed to measure consumption so that the use could be billed. "oZ 111111111011111, City city of san " s oBispo COUNCIL AGENDA REPORT Stenner Canyon Mobilehome Sale and Disposition June 2, 1992 Page 3 Fiscal Impact. If the mobilehome were leased, the City would realize rental revenue. At this time, staff has not estimated what that rental income might be. But it is assumed that it will be minimal and may not offset the administrative costs for maintaining and monitoring the lease. j I Recommendation: i Based on the above, staff feels that leasing the property to Mr. Glick is not in the City's best interest. We are not expert in property management, and we have found that revenue generated from this type of lease does not warrant the amount of staff time it requires. The suggested benefit of having someone living in the mobilehome at that site to provide security is not significant enough to justify leasing the property. If staff had felt that security was a significant issue, we would not have sold the mobile home but, instead, would have sought a qualified lessee. i I I I