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BACKGROUND The City was contacted by the property owner at 5611 Stone Cliff Vista Lane, Samia Ara and Raquib U. Khan (the Khans), about the City's granting to them a portion of the buffer area (Parcel C) located between their lot and the Alameda County Transportation Corridor. This area was dedicated to the City in fee title with Tract 7374, Canyon Oaks, for public purposes. The majority of Parcel C provides for a buffer between the subdivision lots and the City's drainage channel (the channel was formerly owned by Zone 7) that runs along Valley Avenue. A small portion of Parcel C runs along the Alameda County Transportation Corridor. The Khans are inquiring about the portion of Parcel C adjacent to the Transportation Corridor (see Attachment 1, Vicinity Map). According to Mr. Khan, he has been keeping the area between his lot and the Alameda County Transportation Corridor free of weeds since he moved into the home three years ago. According to the CC&Rs for the Walnut Hills/Canyon Oaks development, the HOA is responsible for the maintenance of all the open space areas, including Parcel C. According to Mr. Khan, however, the land adjacent to his property has not been maintained to his satisfaction and he has taken on those maintenance responsibilities himself. Staff has contacted the manager of the Homeowner's Association about Mr. Khan's request to take ownership of a portion of parcel C. According to the manager of the HOA, the Board of Directors have no comment regarding the Khans' acquiring the property for a number of reasons, mainly because the property is owned by the City (see attached letter). Staff has made numerous attempts to get clarification on the Board's stance on this issue, but the manager remains firm that the Board simply has no comment on this issue. Improvements The portion of Parcel C that the Khans want the City to deed to them is encumbered by a storm drain and storm drain outfall that empties into a bioswale that runs along the greater portion of Parcel C. If the property is deeded to them, the Khans will relocate the storm drain system outside the area they wish to acquire, bring in fill material to bring the grade of this property to the same elevation as their lot, and relocate the fence to the new property line. All of these improvements would be at their expense. Fair Market Value of the Property When staff was first approached by the Khans about this proposal, staff indicated that the property would first have to be appraised to determine its fair market value. Once the value of .the property was determined, we would then determine the cost of relocating the improvements outside of the parcel. The difference between the value of the unencumbered land and the cost of relocating the improvements would be the recommended price for the property. Mr. Khan contacted several appraisers to determine the value of the land, as well as several contractors to determine the cost of removing and installing the storm drain Page 2 of 4