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HomeMy WebLinkAbout4.9 Completion of Valley High Purchase boa-3d CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 9, 1987 SUBJECT Completion of Valley High School Purchase EXHIBITS ATTACHED Memorandum from City Attorney dated March 3, 1987; Resolution Approving Second Addendum; Resolution Approving Prior Agreement and Addendum; Budget Change Form RECOMMENDATION '1) Adopt Resolution 26) ) ) Approve budget change form FINANCIAL STATEMENT: The City will receive $5, 260 per month rent from the close of escrow through the date in which the District removes the school buildings. (No Later than July 15, 1987 ) . The purchase of the property was approved September 22, 1986, however,it was anticipated that payment of $341, 675 would occur in fiscal year 1987/88. Therefore, an additional appropriation is required in the current year to conclude the transaction. DESCRIPTION The City Council authorized the purchase of the Valley High School property at the regular City Council meeting on September 22, 1987 . The agreement contains an agreed purchase price of $841, 675. The agreement was originally structured to allow the School District to draw upon a $500, 000 cash deposit. This would provide access to funding to prepare a new school site . The City would receive a credit equivalent to 7 1/2% interest per year on any funds withdrawn. The intent was to protect the City from losing investment income, given that it would have an investment in property which could not be used until the school removed the buildings . Staff has been contacted by representatives of the Amador Valley Joint Union High School District with a request to consider completion of the purchase transaction at this time. The District has finalized plans on the relocation site for the school and can use the proceeds from the sale to cover expenses related to preparing a new site . In exchange for the early closure of the sale, the District would then lease the property from the City. The lease amount is equivalent to interest earnings on the sales price at 7 1/2% per year. The District would be required to remove the buildings by July 15, 1987 . The lease would begin at the close of escrow and terminate upon removal of the buildings . The City would receive $5, 260 per month in lease revenue. The City Council approved a budget change on September 22, 1986 for $500, 000 . This represented the anticipated down payment during Fiscal Year 1986-87 . The balance of the purchase price was anticipated to be paid in July of 1987, which would be a 1987-88 Fiscal Year expense . If escrow closes in 1986-87, it will be necessary for the City Council to authorize an additional appropriation of $341, 675 from the City' s Facility Acquisition and Construction and Street Improvement Reserve to the Civic Center Capital project fund. This transaction will also allow the City Attorney to close the escrow on the Dublin San Ramon Services District Land Swap. The escrow is currently pending due to the involvement of school district property which will be owned by the City. Once the school transaction is complete, the City as owner of the property can complete the transaction. Staff would recommend that the City Council adopt the resolution and authorize the budget transfer. ---------------------------------------------------------------------------- COPIES TO: Tom Treto ITEM NO. .. _ MEYERS, NAVE, RIBACK & WEST MICHAEL R.NAVE ATTORNEYS AT LAW PENINSULA OFFICE STEVEN R.MEYERS 1220 HOWARD AVE.,SUITE 250 NATALIE E.WEST CIVIC CENTER COMPLEX ELIZABETH H.SILVER 835 EAST 14TH STREET BUR 5)3 a8 8 CA 94010 (41 MICHAEL S.RIBACK SAN LEANDRO,CALIFORNIA 94577 (a15)3 .7130 (415)577-3333 MARIN OFFICE OF COUNSEL 1202 GRANT AVE..SUITE E THOMAS F.BERTRAND NOVATO,CA 94947 MEMORANDUM (415)892-8878 REPLY TO: TO: Rich Ambrose, Paul Rankin. and Tom Treto G FROM: Michael R. Nave MAIR {t DATE: March 3 , 1987 CM.- OF DUB RE: Second Addendum to Agreement of Purchase and Sale Pursuant to your direction, I have prepared a Second Addendum to the Purchase Agreement between the City and School District. The Second Addendum will permit escrow to close as soon as desired, and provides for the School District to pay the City $5,260.00 per month rent for its continued use of the school buildings until July 15 , 1987 . The rent is equal to 7-1/2% annual interest on the purchase price of $841,675.00. The amendments areas follows: Section 3. Purchase Price. The last portion of sub-paragraph b. has been deleted. This removes the requirement that the City receive a credit for interest on the amount of the purchase price deposited in escrow. Section 4 . Interest Payment. The language has been changed to provide for no interest payment. Section 5 . Removal of School Buildings. Language has been added to provide for a rental payment to the City for the period that the School District remains in possession. As stated above, the monthly rental is equal to 7-1/2% interest per year which is the rate the City was to receive as a credit on the purchase price. Section 8 . Close of Escrow. Language has been changed to provide for an immediate (24 hours) close of escrow. This Addendum should be placed on the Agenda for March 9 , 1987. MRN/jm RESOLUTION NO. - 87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************************** AUTHORIZING SECOND ADDENDUM TO THE AGREE14ENT OF PURCHASE AND SALE (VALLEY HIGH SCHOOL SITE) WHEREAS, the City of Dublin has agreed to purchase property from the Amador Valley Joint Union High School District in Resolution No. 97-86; and WHEREAS, the School District can use the proceeds from the sale for the relocation of the school ; and WHEREAS, the Amador Valley Joint Union High School District would like to obtain possession of the funds prior to vacating the property; and WHEREAS, the School District has agreed to lease the property until it is vacated; and WHEREAS, the City Attorney has prepared a Second Addendum to Agreement of Purchase and Sale, attached hereto and made a part of this resolution; and -WHEREAS, said agreement will amend the documents adopted with Resolution NO. 97-86. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby approves the Second Addendum and authorizes the Mayor to execute said Agreement. PASSED, APPROVED AND ADOPTED this 9th day of I-larch, 1987 . AYES : NOES : ABSENT: Mayor ATTEST: City Clerk SECOND ADDENDUM TO THE AGREEMENT OF PURCHASE AND SALE (VALLEY HIGH SCHOOL SITE) AMADOR VALLEY JOINT UNION HIGH SCHOOL DISTRICT ("Seller") , and the CITY OF DUBLIN ("Buyer") , hereby amend the Agreement for Purchase and Sale and the First Addendum to said Agreement , each dated September , 1986, as follows : 3 . Purchase Price. Buyer shall pay Seller a purchase price for the Property in the amount of EIGHT .HUNDRED FORTY-ONE THOUSAND SIX HUNDRED SEVENTY-FIVE DOLLARS ($841 , 675. 00) . The purchase price shall be paid as follows : a. FIVE THOUSAND DOLLARS ($5 ,000.00) ( "the Cash Deposit") shall be deposited into escrow. b . The balance of the purchase price ("the Cash Balance") shall be paid in cash. within five days following receipt by Buyer of a written request from Seller for said funds . 4. Interest Payment . There shall be no interest payment . 5 . Removal of School Buildings . Seller shall have the use of the Property for the 1986-87 school year , provided however , Seller shall remove said buildings from the Property by no later than July 15 , 1987. The use of said property following the close of Escrow shall be subject to the following : a. Seller shall lease Property from Buyer from the close of escrow through the date in which the buildings are removed from said Property. However , said lease shall not extend beyond July 15 , 1987 . b . As and for rent for the use of said Property, Seller shall pay to Buyer the sum of FIVE THOUSAND TWO HUNDRED SIXTY DOLLARS ($5 , 260.00) per month from the date of the close of escrow to and including the date in which the buildings are removed from said Property . C . Seller shall remain responsible for all maintenance , utilities and provision of liability insurance for the term of said lease . Seller shall provide proof of insurance which names Buyer as additional insured . Limits of said insurance shall be subject to approval of Dublin City Attorney. 8. Close of Escrow. a . Time . Escrow shall close within twenty-four (24) hours following receipt by- Title Company of the funds and documents described in Section 7 , unless said receipt occurs on a Friday in which case escrow shall close on the next business day. b. Procedure. Title Company shall close escrow as follows : (1) Record the Deed and deliver the Deed to Buyer; (2) Deliver a certified copy of the recorded Deed to Seller; (3) Pay to Seller the Cash Balance reduced by Seller ' s Interest Payment to Buyer and Seller ' s share of closing costs and prorations, as hereinafter set forth; and (4 ) Deliver the Title Policy to Buyer. C . Special Instruction to Title Company. Buyer and Seller may deposit separate escrow instructions with Title Company, provided that the additional escrow instructions do not change or conflict with the terms of this Agreement. d. Incorporation of Escrow Instructions . Buyer and Seller hereby incorporate the standard provisions of . the escrow agreement commonly used by Title Company in the Dublin area. This Agreement shall serve as escrow instructions, and an executed copy of this Agreement shall be deposited by Seller with Title Company following execution hereof. The parties agree to execute for the benefit of Title Company such additional escrow instructions as Title Company shall require, provided that the additional escrow instructions do not change the terms of this Agreement, but merely offer protection for Title Company. Dated: March 1987 "Seller" AMADOR VALLEY JOINT UNION HIGH SCHOOL DISTRICT By Its "Buyer" CITY OF DUBLIN, a Municipal Corporation By Its . Mayor pljy Y��aK:3 .: ..: ..Y.y::".. - .W: r...,-_;. :/. .9.e*.sir - -_z .:.Cti ... w..1a ._.�_... w«- .w..1''tiu�� ri.�L. w _�.r.•.5..�. c.,�._ t4 I - i RESOLUTION NO. 97- 86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN AGREEMENT OF PURCHASE AND SALE OF THE VALLEY HIGH SCHOOL PROPERTY . WHEREAS, the City is desirous of purchasing approximately 1. 6 acres of real property known as the Valley High School property from the Amador Valley Joint Union High School District; and WHEREAS, the City has determined that this property would be a valuable asset in the development of the overall Civic Center site; and WHEREAS, the Amador Valley Joint Union High School District has agreed to sell this property to the City and has executed an Agreement of Purchase and Sale prepared by the Dublin City Attorney (which is attached and herein incorporated) . NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council approves the Agreement of Purchase and Sale of Valley High School property and authorizes the Mayor to execute said agreement. BE IT FURTHER RESOLVED that the Dublin City Council authorizes the City Attorney to draft a side letter with respect to the timing of the deposit required by the agreement into escrow. PASSED, APPROVED AND ADOPTED this 22nd day of September, 1986. AYES: Councilmembers Hegarty, Jeffery, Moffatt, Vonheeder and Mayor Snyder NOES : None ABSENT: None Mayor ATTEST: City�Cl k AGREEMENT OF PURCHASE AND SALE THIS AGREEMENT OF PURCHASE AND SALE ("Agreement") is September' entered as of the 22nd day of 6etebeF, 1986, by and between AMADOR VALLEY JOINT UNION HIGH SCHOOL DISTRICT ("Seller") , a California corporation, and the CITY OF DUBLIN ("Buyer") , a municipal corporation. THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions: A. Seller is the owner of certain real property ("the Property") located in the City .of Dublin, County of Alameda, State of California. The Property is improved with buildings which house Valley High School and is more particularly described in Exhibit "A", attached hereto. B. Seller now desires to sell the Property to Buyer, and Buyer desires to purchase the Property, on all of the terms, covenants and conditions hereinafter set forth. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the parties, the parties hereto agree as follows: 1. Purchase and Sale. Seller shall sell the Property to Buyer, and Buyer shall purchase the Property from Seller, on all of the mutual terms, covenants and conditions set forth in this Agreement. 2. Escrow. Within five (5) days following the date of this Agreement, Buyer shall establish an escrow (Escrow No. 88804) for the close of the purchase and sale of the • e Property at Northwestern Title Insurance Company ("Title Company") , 351 St. Mary' s Street, Pleasanton, California. 3. Purchase Price. Buyer shall pay Seller a purchase price for the Property in the amount of EIGHT HUNDRED FORTY-ONE THOUSAND SIX HUNDRED SEVENTY-FIVE DOLLARS ($841,675.00) . The purchase price shall be paid as follows: (a) FIVE HUNDRED THOUSAND DOLLARS ($500,000 .00) ("the Cash Deposit") shall be deposited into escrow within thirty (30) days following the date of this Agreement. The Cash Deposit shall be subject to immediate withdrawal by Buyer. (b) The balance of the purchase price ("the Cash Balance") shall be paid in cash at the close of escrow, provided, however, that Buyer shall receive a credit against said balance in an amount equal to the Interest Payment as that term is hereafter described. 4. Interest Payment. Seller shall pay to Buyer interest on the Cash Deposit of FIVE HUNDRED THOUSAND DOLLARS ( $500 ,000.00) at the rate of seven and one-half percent (7-1/2%) interest for the period of time from the date of the Cash Deposit into escrow to the date escrow closed, or the date Seller removes the buildings from the Property, whichever first occurs. Payment of said interest ("the Interest Payment") shall be made by allowing Buyer a credit against the Cash Balance in an amount equal to the Interest Payment. In the event that the sale of the Property is not consummated for any reason, Seller shall, upon written demand by Buyer, immediately pay to Buyer the sum of FIVE HUNDRED THOUSAND DOLLARS .($500,000.00) , together -2- f with interest thereon at the rate of seven and one-half percent (7-1/2%') per annum for the period of time that Seller had the use of the Cash Deposit. S. Removal of School Buildings. Seller shall have the use of the buildings on the Property for the 1986-1987 school year, provided however, Seller shall remove said buildings from the Property by no later than July 15, 1987. 6. Conditions of Title. (a) Review and Approval of Title Report. Within five (5) days after receipt, Buyer shall review and approve the preliminary title report ("the Title Report") for the Property, to be issued by Title Company. The matters set forth in any survey Buyer obtains for the Property (at Buyer' s expense) and the conditions of title to the Property set forth in the Title Report, other than exceptions for liens of deeds of trust or other mortgage indebtedness, are hereinafter referred to as the "Conditions of Title". Buyer shall have ten (10) days in which to approve the preliminary title report. Escrow shall not close unless and until Buyer has approved the preliminary title report. (b) Delivery of Title. Conclusive evidence of delivery of title to the Property by Seller to Buyer shall be the willingness of Title Company to .issue, upon payment of title Company' s regularly scheduled premium, a standard form owner' s policy of CLTA title insurance (the "Title Policy") , in the amount of the Purchase Price, showing title to the Property vested of record in Buyer, subject only to the Conditions of Title and the standard printed exceptions of the Title Policy. -3- 7. Deposits Into Escrow. Prior to the Closing Date, as defined in Subsection 8 (a) , the parties shall deposit into escrow the funds and documents described in this Section 7. (a) Seller. Seller shall deposit a duly executed and acknowledged Grant Deed conveying the Property to Buyer; (b) Buyer. Buyer shall deposit the following: (1) Written approval of the Title Report; (2) The Cash Payment; (3) The Cash Balance; and (4) Additional cash in the amount necessary to pay Buyer's share of closing costs and prorations, as hereinafter set forth. 8.' Close of Escrow. (a) Time. Escrow shall close on a date that is not later than ten (10) days after the date on which Seller has removed the buildings from the Property. (b) Procedure. Title Company shall close escrow as follows: (1) Record the Deed and deliver the Deed to Buyer; (2) Deliver a certified copy of the recorded Deed to Seller; (3) Pay to Seller the Cash Balance reduced by Seller' s Interest Payment to Buyer and Seller ' s share of closing costs and prorations, as hereinafter set forth; and (4) Deliver the Title Policy to Buyer. -4- (c) Special Instruction to Title Company. Buyer and Seller may deposit separate escrow instructions with Title Company provided that the additional escrow instructions do not change or conflict with the terms of this Agreement. (d) Incorporation of Escrow Instructions. Buyer and Seller hereby incorporate the standard provisions of the escrow agreement commonly used by Title Company in the Dublin area. This Agreement shall serve as escrow instructions, and an executed copy of this Agreement shall be deposited by Seller with Title Company following execution hereof. The parties agree to execute for the benefit of Title Company such additional escrow instructions as Title Company shall require, provided that the additional escrow instructions do not change the terms of this Agreement, but merely offer protection for Title Company. 9. Successors and Assigns. The terms, covenants and conditions herein contained shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided however, that Buyer shall not, prior to the Close of Escrow, assign Buyer ' s interest in this Agreement and the Property without the prior written consent of Seller, which consent may be withheld in Seller' s sole and absolute discretion. 10. Survival. The terms, covenants and conditions herein contained which are required to be operative after delivery of the Grant Deed in order to be fully effective, shall be so operative and shall not be deemed to have merged in the Grant Deed. -5- 11. Entire Agreement. This Agreement contains all of the covenants, conditions and agreements between the parties and shall supersede all prior correspondence, agreements and understandings, both verbal and written. No addition or modification of any .term or provision shall be effective unless set forth in writing and signed by both Seller and Buyer. 12. Attorneys' Fees. In the event of any litigation regarding the rights and obligations of the parties under this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and court costs. 13. Notices. All notices or other communications required or permitted hereunder shall be in writing and either delivered by hand or deposited in the United States mail, first-class, postage prepaid, and addressed as follows: To Seller: AMADOR VALLEY JOINT UNION HIGH SCHOOL DISTRICT ' ' c/o Land Planning Consultants 205 F Main Street Pleasanton,, CA 94566 To Buyer: ' . Richard C. Ambrose City Manager CITY OF DUBLIN P. 0. Box 2340 Dublin, CA 94568 The foregoing addresses may be changed by written notice to the other party as herein provided. 14. Exhibit. Exhibit "A" is attached hereto and incorporated herein by reference thereto. 15. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. -6- 16. Captions. All captions and headings in this Agreement are for the purpose of reference and convenience and shall not limit or expand the provisions of this Agreement. 17. Time. Time is of the essence for every provision herein contained in this Agreement. 18. Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, but all counterparts shall constitute one instrument. IN WITNESS WHEREOF, the parties hereto have executed one or more copies of this Agreement on the dates)* set forth below, as of the day and year first above written. 'Seller" AMADOR VALLEY JOINT UNION HIGH SCHOOL DISTRICT By l I t Date: September 17. 1986 'Buyer" CITY OF DUBLIN, a municipal corporation By Its BALI Date: 6 -7- 0880 D E S C R I P T I C r All that certain real property situated in the City of Dublin:, County of Alameda, State of California described as follows: PARCEL 1 : A PORTIOlt , of Tract "B" of Parcel No. 6 and described in the final iudgment rendered Jule 24 , 1944 , ir. the United States District Court for the Northern District of California, Southern Division, in Case No. 2460-G, entitled "United States of America V. 105 . 19 acres of land" , a certified copy o= which judgment was recorded April 4 , 1945 , in Book 4681 , Page -134 Official Records of Alameda County; BEGINNING at the northwesterly corner of said Tract "B" of Parcel No . 6 , said northwesterly corner beginning also on the southern. line of County Road tic. 35 (formerly Road !V, Alameda County, Route 5 , Section B) being also known as Dublin_ Boulevard; thence along said southern line South 72° 43 ' 54" East 356 .53 feet; thence leaving last said line South 17° 16 ' 06" Itiest 436 .30 feet to the northeasterly line of the land described in the deed from Volk-McLain Communities, Inc. formerly the Volk-McLain. Co. to Murrav School District of Alameda County, State cf California, a Public Corporation recorded October 26 , 1966 in Reel 1864 , Imaae 533, under Recorder' s Series No. A' 123533 in Official Records of Alameda County; thence along said northeasterly line of last said parcel of land and the direct extension northwesterly thereof North 21 ° 59 ' 10 " West 563 . 44 feet to the POINT OF BEGINNING. EXCEPTING AND RESERVING therefrom a strip cf land 17 .00 feet in width adjacent to the northeast line of said property for the widening of Dublin Boulevard. EXCEPTION THEREFROM that portion deeded to Murray School District , of Alameda County by deed recorded Septe.*nber 17 , 1980 Series 80-160913 Official Records of Alameda County. PARCEL 2 : COMMENCING at the intersection of the westerly line of Dougherty Road, as it existed in October 1964 , and the northerly line of Dublin Boulevard (formerly known as "Old State Highway leading from Dublin to Livermore") , as it existed in October, 1964; said westerly line of Dougherty Road being 25 feet from the measured at right angles to the center lire of Dougherty Road and said northerly line of Dublin Boulevard being 47 feet from and measured at right angles to the center line of Dublin Boulevard; EXHIBIT A r 85804 ' P121 said point of commencement also being the easteriv terminus of the course desianated as North 730 3C ' 00" West 3839 .8.1 feet in the deed by C. M. Dougherty to the County of Alameda dated March 23 , 1917, recorded May 3 , 1917, in Book 2565 of Deeds, Page 182, Alameda County Records (R-17126) ; thence alone said northeriv line of Dublin Boulevard North 720 43 ' 54" West 2299 . 89 feet; thence South 17° 16 ' 06" West 89 .00 feet to the true point of beginning of this description; thence south 210 59 ' 10" East 866 . 67 feet; thence South 671 42 ' 00 " West 374 .23 feet to a point on the arc of a 3000 .28 foot radius curve, said point also being on the northeasterly right of way line of the State Freeway Route 680 , Alameda County; thence along said northeasterly right of way line trort a tangent that bears South 88° 22 ' 51 .33" West and along said 300C . 25 foot radius curve to the left 370 .95 feet through an angle of 71 05 ' 02 .33" ; thence tangent to said curve South 81° 17 ' 49" West 11 . 10 feet; thence North 120 23 ' 14" West 36. 60 feet to the beginning of a tangent 124. 00 foot radius curve to the right; thence along said curve 90.97 feet through an angle of 420 02 ' 09" ; thence non-tangent to said curve North 250 57' 36" East 217 . 80 feet; thence North 29° 38 ' 55" East 550 .22 feet to the beginning of a tangent 562 .06 foot radius curve to' the left; 'thence along said curve 86 . 64 feet through an angle of 8° 49 ' 55" ; thence non-tangent to said curve North 210 49 ' - 23" East 142 .29 feet to a point on the right of way of Dublin Boulevard as it not exists; thence along said right of way South. 720 43 ' 54" East 40 .83 feet to the true point of beginning of this description. Commonlv known as: 6900 Dublin Boulevard Alameda County Account No. 941-1401-23-1 HIJUIT A FIRST ADDENDUM TO AGREEMENT OF PURCHASE AND SALE AMADOR VALLEY JOINT UNION HIGH SCHOOL DISTRICT ("Seller") , and the CITY OF DUBLIN ( "Buyer") , hereby amend the V EPTE N�Q Agreement for Purchase and Sale dated the 22s,_ day of .^��er, 1986, as follows: 3. Purchase Price. Buyer shall pay Seller a purchase price for the Property in the amount of EIGHT HUNDRED FORTY-ONE THOUSAND SIX HUNDRED SEVENTY-FIVE DOLLARS ($841,675.00 ). The purchase price shall be paid as follows : a. FIVE HUNDRED THOUSAND DOLLARS ($500,000.00 ) ("the Cash Deposit") shall be deposited into escrow within ten (10 ) days following the receipt by Buyer of a written request for said funds. The Cash Deposit shall be subject to immediate withdrawal by Buyer. b. The balance of the purchase price ( "the Cash Balance") shall be paid in cash at the close of escrow, provided, however, that Buyer shall receive a credit against said balance in an amount equal to the Interest Payment as that term is hereafter described. Dated: October 1986 "Seller" AMADOR VALLEY JOINT UNION HIGH HOOL DISTRIC By Its Assistant Superintenden Buyer" Business Services " CITY OF DUBL- a Municipal rporation By C '12Y OF DUBLIN BUDGET CHANGE FORM FROM TO IDAPPROPRIATION ACCOUNT AT10UNT ACCOUNT AMOUNT 0 TRANSFER 0 AIMENDMENT 3-24-418 $341, 675 3-24-751 1$341, 675 JUSTIFICATION Appropriates the balance of funds to purchase 1 . 6 acres from Amador Valley Joint Union High School District (Valley High School ) . Original escrow was anticipated to close in Fiscal Year 1987-88. However, closing escrow prior to June 30, 1987 results in transaction as an 86-87 expense and necessitates the budget change. As approved by the City Council March 9, 1987. ITEMITIZED COST Capital Project Fund Civic Center 3-24 $341, 675 • a TOTAL $341, 675 CITY MANAGER APPROVAL DATE CITY. DATE COUNCIL APPROVAL