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THE CITY OF _ _= / ~ ,,, "� CITY COUNCIL AGENDA REPORT L ' Tái . March 21, 2017 City Manager TITLE: ALLOCATION OF $4.13 MILLION TO PURCHASE 3.18 ACRES LOCATED AT 401 AND 403 OLD BERNAL AVENUE IN PLEASANTON, CA FROM THE SAN FRANCISCO PUBLIC UTILITIES COMMISSION (SFPUC) SUMMARY The SFPUC owns a vacant 3.18 acre parcel of land located at 401 and 403 Old Bernal Avenue at the corner of Bernal Avenue across from the City's library in Pleasanton (Old Bernal Parcel). The SFPUC began accepting bids to sell the Old Bernal Parcel on October 13, 2016. Given the Old Bernal Parcel's proximity to Pleasanton's Civic Center and the ACE Train station, the City submitted the winning bid to purchase the Old Bernal Parcel for the appraised value of $4.2 million. The Pleasanton City Council and the San Francisco Board of Supervisors approved the Agreement for Sale of Real Estate (Agreement) for the purchase of the Old Bernal Parcel in December 2016 and February 2017 respectively. The proposed $4.13 million allocation is required to complete the purchase. RECOMMENDATION Approve the allocation of $4.13 million from the Civic Center Reserve and Capital Improvement Plan Reserve to acquire the Old Bernal Parcel. FINANCIAL STATEMENT The Old Bernal Parcel price is $4.2 million of which the City has paid $100,000 through initial deposits leaving $4.1 million due on the purchase price. In addition, the City is obligated to pay closing costs of $30,000 related to title insurance, environmental assessment, property transfer taxes, escrow fees, and recording charges. Thus, the City requires $4.13 million to finalize the purchase of the Old Bernal Parcel. These amounts will be due once the City and SFPUC close escrow on April 11, 2017. Staff are proposing to use the following sources to fund the $4.13 million obligation: Source Amount Civic Center Reserve $1,435,048 Capital Improvement Plan Reserve 2,694,952 Total $4,130,000