MEETING DATE:
JULY 14, 2026
SUBJECT:
Title
RESOLUTION NOS. 2026-9638 & 2026-9639 - DECLARING CERTAIN PARCELS TO BE SURPLUS PROPERTY; EXEMPT FROM THE SURPLUS LAND ACT; AND AUTHORIZING THE CITY ATTORNEY TO SEEK CONFIRMATION FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT WITH RESPECT TO SUCH EXEMPTION; AND AUTHORIZING AN APPRAISAL TO MARKET SURPLUS PROPERTY FOR SALE, AND AUTHORIZING ALL DOCUMENTS NECESSARY FOR THE TRANSFER AND SALE IN THE EVENT SAID EXEMPTION FROM THE SURPLUS LAND ACT IS CONFIRMED BY THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Body
Recommendation
Recommendation
1. ADOPT a resolution declaring APNs 220-222-07-00 and 220-222-23-00 to be surplus property and exempt from California Surplus Land Act, and authorizing the City Attorney to seek confirmation from the California Department of Housing and Community Development (HCD) with respect to such exemption.
2. ADOPT a resolution authorizing the City Manager to secure a valuation of and to market said real property, and authorizing a sale and transfer of said real property, contingent upon HCD verification of the property’s exemption from Surplus Land Act.
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Executive Summary
The City owns two vacant parcels located on Mission Road identified as Assessor's Parcel Numbers 220-222-07-00 and 220-222-23-00 (collectively, "Property"). The parcels contain approximately 0.24 acres each, for a combined area of approximately 0.48 acres.
The City’s ownership of the remnant parcels originated through boundary adjustments undertaken by the City in the 1990s. Due to their small size and constraints on municipal use, the parcels are currently vacant, unimproved, and are not utilized for municipal operations such as public facilities, roadway uses, drainage facilities, parks and community spaces, open space, or other identified public purposes.
Staff evaluated the Property and has determined that it is not necessary for the City's present or foreseeable future operational needs, and seeks to declare the combined Property surplus. Due to individual as well as their combined size, the parcels would be exempt from California’s Surplus Land Act, pursuant to California Government Code Section 54221(f)(1)(B). The proposed resolutions will allow the City to initiate and proceed with disposal of the Property.
Discussion
The Property consists of two small parcels totaling approximately 0.48 acres combined. These two parcels are remnants from boundary adjustments executed in the 1990s that impacted all parcels in the surrounding area. The surrounding area is developed with industrial-type businesses which limits its appeal for recreational municipal uses. Potential municipal uses analyzed included overflow storage for public works equipment or vehicles or other public works type use. However, due to the small combined size of the Property and the configuration of the parcels, including the location on a busy City road, staff determined that the parcels have limited feasible collective or independent uses for future municipal purposes.
Staff conducted research and did not find any planned Capital Improvement Program project, General Plan implementation project, utility expansion, roadway project, drainage facility, public facility, or other municipal purpose requiring retention of the Property. Based on these factors, staff has proposed that the Property is surplus to the City's needs and would result in a cost-effective one-time revenue opportunity.
The Surplus Land Act (Government Code Section 54220, et seq., “the Act) governs the disposition of local agency property determined to be surplus. Priority for local agency surplus land is granted to the development of affordable housing and other public activities and listed for general sale should no affordable developer seek to purchase the land. However, Government Code Section 54221(f)(1)(B) defines "Exempt Surplus Land" as property that:
• Is less than one-half acre in area; and
• Is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
The subject parcels are approximately 0.24 acres each in area, which in total is less than one-half acre, thus the exemption applies when considered either separately or together. The parcels are also adjacent to privately owned industrial properties and are not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes, which are additional factors specified by the Act. Accordingly, the Property qualifies as Exempt Surplus Land pursuant to Government Code Section 54221(f)(1)(B) and staff seeks to declare the property surplus and exempt from the Act. If the City Council adopts the proposed Resolution, staff will submit the exemption determination and supporting documentation to the Department of Housing and Community Development (“HCD”) for review and confirmation as required by the Guidelines implementing the Act, after which staff will proceed with valuation, marketing, and sale of the Property.
Staff also requests authorization to obtain any additional appraisal, valuation, or market analysis deemed necessary to move forward with the disposal of the Property. Following confirmation of the exemption from the Act by HCD, the City Manager will be authorized to obtain an appraisal of and to market the Property to interested parties, solicit and evaluate offers, and negotiate the terms of a sale. The City Manager would also be authorized to complete the sale and transfer of the Property.
Environmental Review
Not applicable.
Fiscal Impact
There is no fiscal impact associated with declaring the properties surplus and exempt from the Surplus Land Act. One-time revenue relating to disposal of the properties is estimated at $975,000 excluding broker fees and associated real estate costs. The net one-time revenue would follow the City’s Fiscal Management Policy 2015-11 and be utilized to meet the City’s minimum reserve threshold or be transferred to the City’s Infrastructure Rehabilitation and Replacement Funds should the City’s minimum reserve threshold be met at the time the revenue is received.
Attachment(s)
Resolution Declaring Surplus Property
Resolution Authorizing an Appraisal
Prepared by: Janet Brotherton, Budget and Analysis Manager
Submitted by: Donna Apar, Finance Director
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager