Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Item 6.3 KolbPrkTennisCrtAquistn
CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 27, 1984 SUBJECT : Kolb Park Tennis Court Acquisition EXHIBITS ATTACHED RECOMMENDATION~~~% FINANCIAL STATEMENT: Letter from City to School District dated 9/22/83; 10/24/83 Agenda Statement; Letter from City to Gary Gilmore dated 10/31/83; 12/12/83 Agenda Statement; Letter from City to School District dated 12/20/83; Murray School District Staff Report on School Properties dated 7/11/84; Site Map See Below Estimated Market Value - $57,000-$87,400 - pending appraisal. Cost of acquisition estimated at $14,250-$21,850 DESCRIPTION Background On September 21, 1983, the City Council authorized Staff to notify the Murray School District of its interest in acquiring the Fallon School Site, including Kolb Park (see attached letter). On October 3, 1983, the School District notified the City that the District would extend the period of time in which the City had to notify the District of its intention to purchase the Fallon School site for 45 days. At its meeting of October 24, 1983, the City Council was presented with a Staff Report (see attached) requesting authorization to request that the Murray School District give the City an adequate extension of time to conduct negotiations for acquisition of the Fallon and Kolb Park site and further authorizing Staff to solicit proposals for a property appraisal of the site. At that meeting, the City Council concurred with Staff's recommendation regarding the request for a time extension, but indicated that it should not be the City's responsibility to pay for the cost of an appraiser. Staff was also directed to ascertain whether the City could qualify under the provisions of the Naylor Bill. On October 31, 1983, Staff sent a letter (see attached) to Mr. Gary Gilmore, the Murray School District Real Estate Representative, requesting certain information regarding the Fallon School and Kolb Park site. To date, the City has yet to receive any of the requested information from Mr. Gilmore. On December 12, 1983, the Staff presented a report (see attached) to the City Council regarding the City's ability to purchase the Fallon School Site under the provisions of the Naylor Bill. At that meeting, the City Council adopted a resolution, which adopted a plan for the purchase of surplus school property, and officially notified the Murray School District of the City's intent to purchase or lease all or a portion of the Fallon School site. Since that meeting of December 12, 1983, the Council, during the General Plan review, indicated its desire to identify a 3 to 5 acre neighborhood park site at the Fallon School site. In addition, the City Council recently required the developers of the Amador Lakes condominium project to contribute up to $50,000 in improvements toward the Kolb Park tennis court refurbishment. During the summer, Staff met with Murray School District Staff Representatives to discuss the City's intentions with respect to the tennis courts. The Murray School District Staff indicated that the School District will be holding a meeting during the month of September to discuss the future of surplus school sites, including the Fallon School site. The Murray School District Staff suggested that the City have a proposal to the School Board regarding the tennis courts so that the proposal can be discussed as part of the overall discussion on the surplus school sites. ITEM NO. COPIES TO~ Murray School District Gary Gilmore Given the fact that the School District has not idicated its intention with respect to the ultimate use of the Fallon School site, it is Staff's recommendation that the City Council authorize Staff to approach the School District with an interim proposal which would involve the purchase of the tennis courts and the land immediately in front of the tennis courts between the courts and Brighton Drive. By acquiring this portion of the site, the City could refurbish the tennis courts and assume responsibility for their future maintenance. Once the School District has determined which portion of the remainder of the site it plans to dispose of, the City could work with the District in acquiring the remainder of the area which is to be used for a park. The Engineering Staff has identified an area of approximately 38,000 sq ft shown on the attached site plan which would be included in the acquisition proposal. Since this site has not been appraised, Staff estimates the ]narket value at $1.50-$2.30 per square foot. Under the provisions of the Naylor Bill, the acquisition cost of the 38,000 square feet is estimated at $14,250-$21,850. It is recommended that the City Council authorize Staff to submit a proposal to the Board of Trustees for discussion purposes, which provides for the City's acquisition of approximately 38,000 square feet of land including the Kolb Park tennis courts. 1983 Stanley L. Maleski, Busines Hanager Murray School District 7416 Brighton Drive Dublin, CA 94568 Subject: EXpression of Interest in Securing the Fallon School Site including Kolb Park by the City of Dublin Dear Mr. Maleski: AC its meeting of September 21, 1983, the Dublin City Council expressed its intention and interesn to secure the Fallon School Site and Kolb Park property for parks and recreation purposes. This property is presently up for sale as surplus School District property by the ~.lurray School District. The City Council directed me to inform you in wri:ing thac it would be interested in meeting with representatives of the School District to discuss the various terms under which this property could be made available to the City of ~ablin. I would respectfully request that you arrange a meeting for the purpose of discussing this propergy with the City. If you have any questions, please don't hesitate to contact my office. Sincerely, Richard C. Ambrose City Manager RCA:kk cc: Dick Cochran, Superintendent Murray School Distric[ Board of Trustees CITY oF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: October 24, 1983 SUBJECT : Fallon School and Kolb Park Site Acquisition EXHIBITS ATTACHED : RECO ' ,... FINANCIAL STATEMENT: Memorandum from City Attorney dated October 7, 1983; Letter from Murray School District dated October 5, 1983 . 1) Request Murray School District to give City an extension of time adequate to conduct negotiations for acquisition of Fallon and Kolb Park site 2) Authorize Staff to solicit proposals for property_ appraisal of site None at this time DESCRIPTION : In accordance with City Council direction, Staff has met with representatives of the Murray School District to discuss the City's interest in acquiring the Fa!lon School and Kolb Park site. At that meeting, the School District indicated interest in maximizing the amount of money it could receive through the purchase of the site. School District representatives indicated these funds were needed to upgrade school facilities throughout the rest of the District. Since ·that meeting, the City received a letter from the School District offices indicating that the School Board of Trustees had extended by 45 days the period of time-in which the City has to respond with a proposal for the purchase of the site. With this extension, the deadline for responding to the School District would be November 9, 1983. Staff has also been informed by the'Real Estate Consultant for the School District that no property appraisal has been conducted to this date -~. Since the School District is interested in the best purchase price for the property, in all likelihood the District would probably'prefer tb sell the property to apriVate developer. The School District-could then obtain the fair market value for the entire site. Given this set of circumstances, the City will only have some negotiating leverage if it qualifies under.the Naylor Bill which was enacted by the Legislature in 1980 As indicated·in the City Attorney's memo (see attached), the purpose· of this bill was to enable public agencies to acquire surplus school, playgrounds, playing fields and recreational real property for less than fair market value, while, at the same time, assuring school districts they would recover their investment in such surplus property. In order for the City to qualify under the provisions of the Naylor Bill, the City Council must take the following actions: COPIES TO: 1. The City Council must make a finding by a 2/3 vote that public lands in the vicinity of the school site are inadequate to meet the existing and foreseeable needs of the community for playground, playing field, or other outdoor recreational and open space purposes. 2. The City Council must adopt a plan for the purchase of school property. As indicated in the City Attorney's memo, the plan must designate the sur- plus site or sites~all or a portion of which the City desires.to purchase pursqant to the act and must designate at least 70% of the total surplus property as property which the City does not wish to purchase under the act. If the plan indicates the City wishes to purchase only a portion of a site under the act, it must designate the percent of the property.to be so pur- chased and include a description of the property. The act does.not specify the form that the plan must take, or any of the requirements, other than the above. Staff has contacted several other cities who have entered into nego- tiations with school districts for surplus school property since the passage of the Naylor Bill. These cities have indicated their willingness to provide information on ~the development of a plan that will be helpful to the City. Unless the City takes the actions indicated above, it will have a very weak.. bargaining position with respect to either a purchase or a lease arrangement with the.School District for the Fallon site. · Staff has also considered its ability to negotiate with the Schoo~ District over the development of the property as a means of making it attractive to the School District to work with the City in at least retaining a portion of the site for parks and recreational purposes. However, since the present School District site is located on property that is zoned 6500 sq ft lot minimum, there would be no advantage to the School District or a developer in dealing with the City unless the City permitted a significant increase in the density for the properny. Since the School District property is completely surrounded by single family homes, it is questionable whether a higher density development would be compatible with the'existing single family neighborhood. In addition to taking the actions necessary to qualify the City under the Naylor Bill, it is important to determine what the maximum and minimum sales price for 'the property could be. In order to do this, the City needs to receive some type of feedback from the School District with respect to what its maximum sales price will be and further, the City needs to have a property appraisal done in order to calculate-the minimum sales.price. RECOMMENDATION Given the actions that are necessary to continue the negotiation process with the School District, it is Staff's recommendation that the City Council take the following actions: 1. Direct Staff to prepare a letter requesting that the School District Board of Trustees extend the time in which the City can negotiate with the District for the acquisition of Fallon and Kolb Park site. 2. Authorize Staff to solicit proposals for a property appraisal of the site. P.O. Box 2340 Dublin. CA 94566 THE CITY OF DUBLIN October 7, 1983 (,115) 829-00"~ TO: FROM: RE: RICHARD A~ROSE MICHAEL R. NAVE "Naylor Bill .... Purchase of Surplus School Property The Naylor Bill (g_B 859) was enacted by the Legislature in 1980 (Stats 1980, ch.736) . The purpose of the bill was to enable public agencies to acquire surplus school playgrounds, playing fields and recreational real property for less than fair market value while at the same time assur- ing school districts that they would recover their investment in such surplus property. Education Code Section 39390. I will briefly outline the relevant provisions of the Act as they apply to the Fal!on School site in Dublin, which the school district intends to sell. The Act applies only to school property which is used for school playground, playing field, or other outdoor recreational purposes and open-space land particularly suited for recreational purposes. The land must have been used fcr one of these purposes for at least eight (8) years prior to the date the school district determines to sell it. Finally, there must be no other available pulicly owned land in the area adequate for the recreation needs of the community. The City must make a determination that no such publicly owned land is available. Education Code Section 39391. Inasmuch as the Kolb Park area of the Fa!lon School has been used as a park since 1964, it appears that the site in question qualifies under the Act, assuming the City makes the required finding (discussed below). Under Education Code Section 39393 the school district board must first of£er to sell (or lease, if it SO determines) property coming within the Act to the city within which the land is situated. The school district board has complied with this requirement in that it has adopted a reso- lution stating its intention to sell the Fallon School site (Resolution 84-84-3). The City has sixty (60) days within which to notify the school district of its intention to purchase such property. Your letter to the school board advised the school district of Dublin's intention to purchase the Fallon School site within the sixty (60) day time period. TO: FROM: RE: RICHARD A~ROSE October 7, 1983 MICHAEL R. NAVE "Naylor Bill .... Purchase of Surplus School Property To purchase the Fallon School site pursuant to the provisions of the Naylor Bill, the Council must do the following: 1. The Council must make a finding by a 2/3 vote (i.e., 4/5) that "public lands in the vicinity of the school site are inadequate to meet the existing and foreseeable needs of the community for playground, playing field, or other outdoor recreational and open-space purposes." This finding can be made by resolution or ordinance. It should contain a recitation of the location of available public lands in the vicinity of the Fallon School. Education Code Section 39397. 2. The Council must adopt (by resolution or ordinance) a plan for the purchase of school property. Education Code Section 39397.5. The plan must designate the surplus site or sites all or a portion of which the Cit~~ desires to purchase pursuant to the Act and must designate at least 70% of the total surplus property as propert~ which the Cit~ does not wish to purchase under the Act. If the plan indicates that the City wishes to purchase onl~ a portion of a site under the Act, it must designate the percent of the prcpert!' to be so purchased and include a description of the property. The Act does not other requirements speci=~ - - ~v ~ne Corm the plan must take or anx~ other than the above. The Act establishes a maximum and minimum sales price for property purchased pursuant to it. The maximum price shall not exceed the school district's cost of acquisition ad- justed for inflation (based on the CPI for the Bay Area), from the date of purchase to the date of sale, plus the cost of any improvements to the recreational and open-space portion of the land which the school district has made since its acquisition. Education Code Section 39396. Section 39396 provides in relevant part: "..lthe price...sha!l not exceed the school district's cost of acquisition, calculated as a pro rata cost of acquirin9 the entire parcel comprising the school site, adjusted by a factor equivalent to the percentage in- crease or decrease in the cost of livin9 from the date of purchase to the year in which the offer of sale is made, plus the cost of any improvement to the recreational and open-space portion of the land which the school district has made since its acquisi- tion of the land." -2- TO: FROM: RE: RICHARD At. tBROSE October 7, 1983 MICHAEL R. NAVE "Naylor Bill .... Purchase of Surplus School Property The Act provides, however, that in no event shall the sales price be less than (1) 25% of the fair market value of the land (only the portion of the land coming within the Act's definition); or (2) the amount necessary to retire any bonds on the property plus the amount of the cost of any state aid applications on the property. The City may take advantage of the Act's provi- sions with respect to the maximum sales price only with respect to 30% of the total surplus school acreage. Education Code Section 39403. This is the reason for the requirement that the plan which the Council must adopt must designate at least 70% of the surplus property as property which the City does not wish to purchase under the Act. There are a number of other provisions of the Act ~,-~ ~ depending on later circumstances. which may be re .... n=, Section 39398 recuires the City, if it purchases land pursuant to the Act, to maintain it for recreational uses. It also allows the school district to reacquire the land, which provision must be set forth in the deed. And, if the City determines that the land is no loncer heeled for recreational purposes, it must first offer the land to the school district. The Act also sites C~S~IC~ allows the schco! ~ =~' ? to designate two surulus school as exempt from the Act under certain circumstances not relevant here. Education Code Section 39401. And the Act allows alternatives to sale, such as leases, open-space easements, etc. Education Code Section 39402. Asse~f~lvman Naylor's administrative assistant indicated that many school districts and cities end up negotia- ting a purchase price less than fair market value once the City has taken the initial steps to take advantage of the Act. In essence, the Act gives cities a bargaining tool when it comes to negotiating the price. In addition to the two Council actions specified above, it is obviously important to begin discussions with the school district to determine what the district's maximum sales price will be and how it is calculated. An appraisal of the property should he done (if one has not already been made) to the minimum determine fai~ ~' .... value in order to compute sales price. MRN / j m -3- RECEIVED OCT ':"198] .~~~._~~~ C,T', c.~ """,,', URRAY SCHOOL DISTRICT ADMINISTRATION OFFICES (415) ~2G-2551 SUPERINTENDENT RICHARD F. COCHRAH ASSISTANT SUPERINTENDE~.T HEINZ GEWING BUSINESS MANAGER STANLEY L MALESKI DIRECTOR OF SPECIAL SERVICES JACK B. TAYLOR DIRECTOR OF CURRICULUM VlNCE ANACLERIO October 5, 1983 klr. Richard C. Ambrose City Manager City of Dublin P. O. Box 2340 Dublin, CA 94568 Dear Mr. Ambrose: At its regular meeting on October 3, 1983, the Board of Trustees did extend by forty-five days the period of time it has to notify the District of its intention to purchase the Fallon School site, If you have any questions please don't hesitate to contact this office. Sincerely, Office ~lanager lb EQUAL OPPORTUNITY EMPLOY[I~ October 31', 1983 Mr. Gary.Gilmore ':1201 Franklin Mall '~'Santa Clara, CA 95050 In order to facilitate the City's submittal of a lease or purchase proposal for Fallon School and Kolb Park sites, the City needs certain historical information with respect to the subject property. It is my understanding in reading Section 39396 of the Education Code that the sales price may be determined as follows: 1) Price shall not exceed the School District's cos% of acquisition, calculated as a pro-rata cost of acquiring the entire parcel comprising the school site adjusted., by a factor equivalent to the percentage increase or decrease in the cost of living from the date of purchase to the year in which the offer of sale is made, plus the cost of any improvement to the recreational and open space portion of the land which the School District has made since acquisition of the land. 2) The price shall not be less than 25% of the fair market .~. ~i-:~;,~i:!-., ~.value of land. ~ ~: 3'} Price shall not be less than the amount necessary to ~. , ~. · retire the share of local bonded indebtedness plus the i~ '~ ~ii~i,:i' i~ '~?~,am°unt of the original cost of the approved state aid .~i~,~i ~i'r ~i~ i~i~"~pplic'ations On the property. " ~. '., ~' .The Government Code excludes that portion of the property which the School BOard has determined to retain. Since~'it~is our .Understanding that the School District has not conducted a property appraisal at this time, I would appreciate it if you would provide me with the follo%~ing information in order that the City and School District may proceed with discussions regarding the School District property in question as ,expeditiously as possible: 1. ~as the Murray Board of Trustees determined to retain any portion of the Fallon or Kolb Park site? Mr. Gary Gilmore Page 2 What was the School District's cost of acquisition? What cost of living factor have you determined should be used to adjust the cost of acquisition? What improvments to the recreational and open space portion of the land has the School District made since acquiring the land? Wha~ amount*, if any, is necessary to retire local bondea indebtedness plus the amount of the original cost of the approved state aid application for the property. I would appreciate it if you could provide this information at your earliest convenience. Thank you for your assistance. Sincerely, RCA:kk cc: Dick Cochran Stan Maleski Richard C. ~brose City Manager CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 12, 1983 ~ : Fallon School Site Acquisition SUBJECT ~. EXHIBITS ATTACHED -[~ Resolution Stating Intent to Purchase All or a Part of ~- Fallon School Site and Acquisition of Surplus School '~ Property Plan '~ RECOMMENDATIO~Adopt Resolution and Plan ' ~ ~, i,. ~ FINANCIAL STATEMENT: Dependant upon results of negotiations with Murray - School District DESCRIPTION : At a previous City Council meeting, the Council instructed Staff to determine the requirements of utilizing the provisions of the Naylor Bill to acquire recreation facilities at the Fallon School Site. 'The attached resolution includes the findings necessary to qualify under the state legislation, which allows a portion of the property to be purchased at 25% of market value. Included as a part ~of the resolution of intent to purchase, is a plan for the acquisition of surplus school property. The laws regulating this area are ambiguous in that a City is required to develop a plan; however, the school .district is not required to state what properties they intend to declare as surplus ,Therefore, the City must"develop ~a plan based on the best projections available. The plan outlines the City's intent to purchase surplus property under the provisions of the Naylor Bill to provide for two neighborhood parks of approximately 5 acres each. One park would be located at Fallon School and the other at Frederiksen. · ~The entire 10 acres necessary for parks of the size mentioned would not be'able to be purchased under the Naylor Bill. As indicated in Section IV of the plan, the City would be able to purchase approximately 8 acres at a below market rate. The approval~of ~the resolution will authorize the City Manager to proceed with negotiations for the acquisition of the property. .This will'help to clarify-the extent to which the Fallon School property is available for lease or purchase. As of this date, there has not-been any indication of the amount of the .site available or the terms of acquisition. It will be necessary to bring any proposed agreement to the City Council for their approval. COPIES TO: RESOLUTION NO. - 83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A PLAN FOR THE PURCHASE OF SURPLUS SCHOOL PROPERTY AND NOTIFYING THE MURRAY SCHOOL DISTRICT OF THE CITY'S INTENT TO PURCHASE OR LEASE ~_LL OR A PORTION OF THE FALLON SCHOOL SITE AND MAKING CERTAIN FINDINGS RELATED THERETO WHEREAS, the Murray School District has notified the City of Dublin of its intention to dispose of the Fallon School Site, in accordance with provisions of state law; and WHEREAS, the Parks & Recreation Advisory Committee has recommended to the City Council that it would be advantageous to acquire all or a portion of the Fallon Site for continued recreational use; and WHEREAS, in accordance with Education Code Section 39397.5, the City has prepared a plan for the purchase of surplus school property of the Murray School District, a copy of which is attached to this resolution as "Exhibit A", and incorporated herein by this reference; and WHEREAS, there is little or no probability that the acquisition and use of this land for recreational purposes will be a detriment to or interfere with the future general plan; and WHEREAS, the adoption of the plan to purchase school property has been determined to be categorically exempt from the California Environmental Quality Act, and State and City guidelines promulgated pursuant to said act. NOW, THEREFORE, BE IT RESOLVED that: Section 1. findings: The City Council makes the following a. Portions of the Fallon School Site consist of land and improvements which have been and continue to be used for school playground, playing field, tennis courts, or other outdoor recreational purposes and open space land particularly suited for recreational purposes. b. Portions of the Fallon School property referred to in paragraph "a", above, have been used for such playground, playing field, or other recreational and open space purposes for at least eight years prior to the date on which the school district determined to dispose of the site. Specifically, Kolb Park, which is a part of the Fallon Site, has been used as a park since 1964. c. There is not available in the vicinity of Fatlon School other publicly owned land that is adequate to meet the existing and foreseeable needs of the community for playground, playing field, or other outdoor recreational and open space purposes. [ RESOLUTION ADOPTING A PLAN FOR THE PURCHASE OF SURPLUS SCHOOL PROPERTY AND NOTIFYING THE MURRAY SCHOOL DISTRICT OF THE CITY'S INTENT TO PURCHASE OR LEASE A PORTION OF THE FALLON SCHOOL SITE AND MAKING CERTAIN FINDINGS RELATED THERETO Page 2 1983. Section 2. The City Council hereby adopts "Exhibit A", entitled "Plan for the Acquisition of Surplus School Property - Murray School District", and dated December 1983. Section 3. Pursuant to Education Code Section 39394, the City Council hereby expresses its intention to acquire those portions of the Fallon site identified in Section IV of said plan, at a sales price to be determined according to the formula set forth in Education Code Section 39396(a). Section 4. Nothing in the plan for acquisition or this resolution shall preclude the City from purchasing surplus property beyond the provisions of the Naylor Bill, provided that said purchase is made pursuant to related sections of the state law. Section 5. The City Clerk is hereby directed to transmit a certified copy of this resolution to the governing board of the Murray School District. Section 6. The City Manager is hereby authorized and directed to negotiate with the Murray School District, or its agents, for the acquisition of all or a portion of the Fallon School property. Section 7. This resolution shall become effective upon its adoption. PASSED, APPROVED AND ADOPTED this 12th day of December, AYES: NOES: ABSENT: ATTEST: Mayor City Clerk EXHIBIT A PLAN FOR THE ACQUISITION OF SURPLUS SCHOOL PROPERTY - MURRAY SCHOOL DISTRICT December 1983 I. This plan is intended to identify surplus property owned by the Murray School District within the City of Dublin. The City intends to purchase the property under the terms provided in the California Education Code Section S39390 et. seq., hereinafter referred to as "Naylor Bill" II. As of the date of this plan, the Murray School District owns the following school sites and/or schools within the City of Dublin: Dolan School Site, Fal!on School and attached Kolb Park, Frederiksen S~h~ol~ Murray School and Dublin School~ ~Jc%l~ ~c~l / ~cu~h~ ~~ / ~ _~___--------~ - III. The Murray School District identified the Fallon School as surplus to the educational needs of the District in July, 1983. It has also been determined that the Dolan School Site will not be necessary. The Dublin School is currently leased to a private educational institution and the Fallon School operates under a similar arrangement. The Fallon School Site includes a recreational open space area known as Kolb Park and also houses the District Administrative Offices. It has also been determined by a school closure committee that Frederiksen School is scheduled to close in 1985. The Murray school District has not adopted a plan specifying the extent to which properties now controlled by the District will be declared surplus. Therefore, an assumption must be made regarding possible closures and the resulting surplus property, in order to effectively identify potential surplus sites for acquisition. This plan assumes the potential closure and declaration as surplus of two Murray School District schools; and one school site, Fallon and Frederiksen Schools and Dclan School Site property. It is anticipated that the development of a 5 acre neighborhood park at the Fallon School Site and a 5 acre neighborhood park at the Frederiksen School Site will be consistent with the future general plan. IV. Designation of Property for Purchase Under the Naylor Bill, the City of Dublin may elect t© purchase up to 30% of the surplus site or sites owned by a school district within the City limits at the price established by said legislation. If the Fallon Site consists of 13.99 acres and the Frederiksen Site consists of 12.70 acres, the approximate total of surplus prperty would be 26.69 acres. Therefore, using the 30% limit, the City would be eligible to purchase up to 8.007 acres at 25% of market value and according to provisions of the Naylor Bil~. At least 70% of the total surplu~_s~g~l_acreage will be property which the City does not desire to purchase at the price pursuant to provisions of the Naylor Bill. The City intends to purchase the portion of the Fallon School which is known as Kolb Park and adjacent recreational areas sufficient to provide approximately a 5 acre neighborhood park. The development of recreational facilities at Frederiksen will be of a similar size and use as the facilities described above. The park area will front Tamarack Drive and include adjacent fields and play areas approximately equal to 5 acres. December 20, 1~83 Board of Trustees Murray School District 7416 Brighton Drive Dublin, CA 94568 Attention: Richard F. Cochran, Superintendent Dear ~r. Cochran: At the City Council meeting of December 12, 1983, the City Council adopted a plan for the purchase of surplus school property in the Murray School District. This plan identifies approximately 5 acres at both the Fallon and Frederiksen School sites as potential park sites in the future. The plan also states the City's intention to purchase properties for park purposes at the Fallon and Frederiksen School sites in the future. The City Council also adopted findings which would qualify the City to purchase property under the Naylor Act as provided for in the Education Code. I have enclosed a copy of the resoluLion and the plan for acquisition of school surplus property with this letter. As I indicated in my letter to Gary Gilmore on OctoDer 31, 1983, there is certain information that the City must have before it can proceed with property negotiations with respect to the Fallon site. Once I have received this information, I ~n sure that we can commence negotiations with respect to the dispositlon of the Fallon site. In the meantime: if the ~lurray School Dls~rlct Board of Trustees takes any further action with respect to nhe Fallon site, I would appreciate you forwarding that information to the City. I hope that we can work to a solution that benefits both the School District and the City in terms of provision of services to the com~unity~ I look forward to working with you on this matter in the future. In the meantime, if you have any questions, please don't hesinane ~0 contact me. Sincerely, RCA:kk Enclosures cc: Gary Gilmore Stan Maleski Richard C. A~;~brose City ~.lanager URRAY SCHOOL DISTRICT TO' FROM: DATE: RE: Board of Trustees Richard F. Cochran Stanley L. Maleski July 11, 1984 Item #E-2: Property Data: Kolb Park, Fallon, Dublin, Cronin, Frederiksen, Dolan and District Office BACKGROUND As requested by the Board of Trustees, we have analyzed the alternative uses for several of the District's properties. Our analysis, which is attached, identifies eight different alternatives for the use of the sites, and analyzes the prospective cash flows that will result from each of those alternatives. All of the alternatives are based upon a set of specific assumptions. Those assump%ions, that property can be sold or rented for specific amounts and that interest rates will remain at the rate specified, need to be considered when reviewing the report. Costs that might be associated with remodeling building space or continued long-term maintenance have not been identified. These amounts may be significant. It is our recommendation that at this meeting the Board receive the report with discussion limited to the technical aspects of the report itself. We further recommend that any discussion of the relative merits of the various alternatives be deferred until your September 10th study session. RECOMMENDED ACTION Receive report. RFC/SLM:lb Attachment MURRAY SCHOOL DISTRICT ALTERNATIVE USES OF DISTRICT PROPERTIES II. PROBLEM STATEMENT The closure of Dublin School and Fallon School, as well as the closure of Frederiksen School the end of June 1985, requires the district develop a long-range plan for the use or disposition of these sites and the con- tinued operations of the district. The plan needs to consider the three vacant school facilities, as well as: 1) enrollment projections for the other nearby schools; 2) location of the district office; 3) projected cash flows. This report lists eight different plans for the use and/or disposition of the district's physical plants. All of the alternatives are feasible. Certain alternatives have not been included, having been eliminated early in the analysis as non-feasible. The alternatives which have been excluded from the analysis are the sale of Frederiksen or Dublin Schools, and new construction for the district office. These alternatives have been eliminated because future enrollment projections indicate that at some future date Frederiksen and/or Dublin Schools may be needed by the district for school purposes. The construction of a new district office has been eliminated because it simply does not make good economic sense to build a new district office from the ground up when the district has surplus buildings. The following sections of the report present a description of the possible alternatives, enrollment projections and analysis, financial implications, and recommendations for future actions. POSSIBLE ALTERNATIVES This section of the report describes eight different possible alternatives. Because each alternative involves several sites, the descriptions of each are lengthy. Future references to each alternative will simply be by the letter designations, such as Alternative A or Alternative B. The analysis of the alternatives will be made upon certain basic assumptions. The most basic being the facts of acreage and space at each site. Exhibit 1 (below) lists the number of acres at each site, the building square foot- age, and the number of classrooms. Exhibit 1 Area for Each Site Site Acres Cronin 7.09 Fallon 13.99 Frederiksen 12.70 D.O./Kolb 3.62 Sq.. Ft. Bldg.. Classrooms 19,714 12 36,407 20 44,203 24 Page 2 July ll~ 1984 Additional assumptions include: l) the City of Dublin is interested in acquiring five acres of the Fallon/Kolb Park area, and the City is entitled to acquire the property at 25% of market value under the Naylor Bill. 2) The market value of property in the Fallon/Cronin/Frederiksen area is $100,000 per acre. 3) If improved school sites are sold, the existence of buildings may decrease rather than increase the market value. 4) School sites can be leased at 30¢ per sq. ft. per month. This is the current rate being charged for Fallon School. 5) If the district office moved from.its current location, the space requirements would be equivalent to approximately 15-17 standard classrooms. The alternatives are: A. Alternative A 1.District Office remains at its current location on approximately 5 acres of the Fallon School site. 2. Cronin remains as an operating school. 3. Fallon School is leased out. 4. Frederiksen School is leased out. 5. Five acres of the Fallon site are sold to the City. B. Alternative B 1. District Office is moved into Fallon classrooms. 2. Cronin School remains as an operating school. 3. Frederiksen School is leased out. 4. Five acres of the Fallon site are sold to the City. 5. Five acres of Fallon School are sold to developers. C. Alternative C 1. District Office is moved to Cronin School. 2. Frederiksen School is reopened as a K-6 school. (For children formerly attending Cronin School.) 3. Five acres of Fallon School are sold to the City. 4. 12.5 acres of Fallon School are sold to a developer. Page 3 July ll~ 1984 D. Alternative D 1. District Office is moved into Fallon School classrooms. 2. Frederiksen School is reopened as a K-6 school. 3. Cronin School is leased out. 4. Five acres of the Fallon site are sold to the City. 5. Five acres of the Fallon site are sold to a developer. E. Alternative E 1. District Office is moved into Fallon School classrooms. 2. Frederiksen School is reopened as a K-6 school. 3. Five acres of the Fallon site are sold to the City. 4. Five acres of the Fallon site are sold to a developer. 5. Sell Cronin School (7 acres). F. Alternative F 1. District Office remains at its current location. 2. Five acres of Fallon School site are sold to the City. 3. Seven acres of Fallon School site are sold to a developer. 4. Cronin School remains at its current location. 5. Frederiksen School is leased out, G. Alternative G 1. District Office remains at its current location. 2. Five acres of Fallon School site are sold to the City. 3. Seven acres of Fallon School site are sold to a developer. 4. Frederiksen School is reopened as a K-6 school. 5. Cronin School is sold to a developer. Page 4 July ll, 1984 III. H. Alternative H 1. District Office remains at its current location. 2. Five acres of Fallon School site are sold to the City. 3. Seven acres of Fallon School site are sold to a developer. 4. Frederiksen School is reopened as a K-6 school. 5. Cronin School is leased. FINANCIAL IMPLICATIONS This section of the report provides information on the expected financial impact that will result from the adoption of each of the alternatives. Some of the alternatives involve lease income, others involve the outright sale of the property. Whether the money received is an annual cash flow, as with rental income; or a lump sum payment, as with a sale of property; the income should be thought of as an annual cash flow. That is, how much money will be realized from the asset each year in perpetuity. For this reason each alternative shows annual cash flow for rental income, and for the sale of propert~annual cash flow assuming that the principal amount is earning interest at 10,.% per year. A. Alternative A Cash in Bank Annual Cash Flow Fallon Lease Income Frederiksen Lease Income Sell 5 acres of Fallon to City @ 25% market Total Alternative A $131,065 159,130 $125,000 12,500 $125,000 $302,695 This alternative, as with all other alternatives, includes the sale of five acres of the Fallon/Kolb site to the City. The five acres need not be the same five acres that are used as Kolb Park. The City expects that if they acquire Kolb Park it will require extensive redesign. Therefore, any five acres which include the tennis court will be acceptable to them. This alternative assumes the district can fully lease Fallon as well as Frederiksen Schools. This may not be possible. Page 5 July ll, 1984 B. Alternative B Cash in Bank Annual Cash F1 ow Frederiksen Lease Income Sell 5 acres of Fallon to City @ 25% market Sell 5 acres of Fallon to developer Total 'Alternative B $159,130 $125,000 12,500 500,000 50,000 $625,000 $221,630 If this alternative is adopted it is expected that Tri-Valley Church of God and Fountainhead Montessori will move to Frederiksen School. Additional space at Frederiksen School will be available for lease. The district office will require all three classroom wings, as well as the administrative office, for district purposes. One wing will be remodeled for maintenance shops and print shop. Because Fallon School is divided into 30' x 30' spaces, the total cost of remodeling should not be great. New construction will be required for a bus repair garage. The buildings at Fallon do not have high enough ceilings to accommodate a school bus. C. Alternative C Cash in Bank Annual Cash F1 ow Sell 5 acres of Fallon to City @ 25% market $ 125,000 $ 12,500 Sell 2-5 acres of Fallon to developer 1,250,000 125,000 Total Alternative C $1,375,000 $137,500 If this alternative is adopted, Cronin School will be remodeled for office purposes. Because of the open design of the school, more re- modeling may be required than for Alternative B. If only the general purpose classrooms at Frederiksen School are required for a K-6 school, the remodeling at Frederiksen should be minimal. If the special purpose classes (shop and home economics) need to be remodeled, and/or classrooms joined together, the remodeling costs will increase. This alternative assumes that the buildings at Fallon School will be of no use to a buyer and will be leveled. Page 6 July ll~ 1984 D. Alternative D Cash in Bank Annual Cash F1 ow Cronin Lease Income Sell 5 acres of Fallon to City @ 25% market Sell 5 acres of Fallon to developer Total Alternative D $ 70,970 $125,000 12,500 500,000 50,000 $625,000 $133,470 This alternative will require remodeling of Fallon School as described in Alternative B. The comments about Frederiksen School in Alternative C apply. Cronin School should be fully leased out if Tri-Valley Church of God, Fountain- head Montessori, and Kaleidoscope relocate there. E. Alternative E Cash in Bank Annual Cash Flow Sell 5 acres of Fallon to City @ 25% market Sell 5 acres of Fallon to developer Sell Cronin to developer (7 acres) Total Alternative E $ 125,000 $ 12,500 500,000 50,000 700,000 70,000 $1,325,000 $132,000 This alternative assumes that seven acres of Cronin School would be sold, but that Cronin Park would remain as district property. It may be desirable to sell the approximately 3 acres of Cronin Park at the same time, assuming the City would grant a building permit to a per- spective buyer. F. Alternative F Cash in Bank Annual Cash Flow Sell 5 acres of Fallon to City @ 25% market Sell 7 acres of Fallon to developer Frederiksen Lease Income Total Alternative F $125,000 $ 12,500 700,000 70,000 159,130 $825,000 $241,630 All components of this alternative have been discussed in previous alternatives. Page 7 July ll, 1984 G. Alternative G Cash in Bank Annual Cash F1 ow Sell 5 acres of Fallon to City @ 25% market Sell 7 acres of Fallon to developer Sell 7 acres of Cronin Total Alternative G $ 125,000 $ 12,500 700,000 70,000 700,000 70,000 $1,525,000 $152,500 All components of this alternative have been discussed in previous alternatives. H. Alternative H Cash in Bank Annual Cash Flow Sell 5 acres of Fallon to City @ 25% market $ Sell 7 acres of Fallon to developer Cronin Lease Income Total Alternative H $ 125,000 $ 12,500 700,000 70,000 70,970 825,000 $153,470 All components of this alternative have been discussed in previous alternatives. All of the alternatives and the expected annual cash flows are summarized in Exhibit 2 (below). The top row of the Exhibit identifies each school site, specifically five acres of the Fallon School site that will be sold to the City identified as Kolb Park; a five acre area occupied by the district office; a seven acre area identified as Fallon and occupied by the Fallon buildings and playground; seven acres occupied by Cronin School; and the 12.7 acres of Frederiksen School. The first column lists each of the alternatives A - H. Exhibit 2 Summary of Alternatives Kolb D.O. Fallon Cronin Fred. Annual Cash Site 5 ac. 5 ac. 7 ac. 7 ac. 13 ac. Flow Alternative A Sell D.O. Lease K - 6 Lease $302,695 B Sell Sell D.O. K - 6 Lease 221,630 C Sell Sell Sell D.O. K - 6 137,500 D Sell Sell D.O. Lease K - 6 133,470 E Sell Sell D.O. Sell K - 6 132,500 F Sell D.O. Sell K - 6 Lease 241,630 G Sell D.O. Sell Sell K - 6 152,500 H Sell D.O. Sell Lease K - 6 153,470 Page 8 July ll, 1984 IV. ENROLLMENT HISTORY AND PROJECTIONS This section of the report reviews the enrollment of Murray and Cronin Schools, the capacity of the two schools, and projects future enrollment. Both schools are located within the attendance boundaries of Quandrant B of the Murray School District (see Exhibit 3). Dublin School has been eliminated from this section of the report. Based upon available land, the greatest potential future growth is in Quandrant A. Nielsen and Dublin Schools are located in Quandrant A. Exhibit 4 compares the highest enrollment, current enrollment, and September 1984 projected enrollment for Cronin and Murray Schools. Exhibit 4 Enrollment Comparisons, Cronin & Murray Schools Enrollment Highest Current Proj. Sept. 1984 Cronin School 547 (1969-70) 328 330 Murray School 600 (1970-71) 521 534 For Cronin School the highest enrollment of 540 students is 65% greater than the September projected enrollment of 330 students. For Murray School the highest enrollment of 600 students is 12% higher than the projected September enrollment of 534. It must be noted that the enrollment of 547 students at Cronin and 600 students at Murray did require the use of portable classrooms. Likewise, it should be noted that portable classrooms were successfully used at these sites in the past and, if needed, could be used again. The maximum pupil capacity of Cronin School with 12 permanent classrooms and 1 portable classroom is 336 students. At Murray School the capacity of the school with 20 permanent classrooms is 560. The capacity of both schools is greater if morning and afternoon kindergartens are scheduled. Projecting future enrollment beyond 1984/84 school year is both more difficult and less certain. As listed in the District Master Plan (revised January 1984) Exhibit 5 shows new housing projected in Quandrant B that should be completed by December 1985. Construction projected for completion within five to seven years are shown in Exhibit 6. EXHIBIT 3 ATTENDANCE BOUNDARi£::; ANI.) LOCATION OF SCHOOLS IN QUADILANT B ; ,I (B) ' (E) ,~ · tv£~'C&STL£ 3 's~ sT 0 -27- LLEy 8LvD FREDERIKSE SCHOOL, WELLS SCHOOL CRONIN SCHOOL Page 9 July ll, 1984 o Exhibit 5 Construction Anticipated by December 1985 There are plans for 81 units south of the railroad tracks on Amador Valley Boulevard. There are plans for 555 condominiums in the area west of Stagecoach Rd. to be completed by December, 1985. There are plans for 303 condominiums south of the railroad tracks on Amador Valley Boulevard. There are plans for 26 condominium units to be located by the Lutheran Church at the corner of Davona Drive and Alcosta Boulevard. There are plans for 150 single family homes to be constructed east of Dougherty Road and north of Amador Valley Boulevard to be completed by December, 1985. Exhi bi t 6 Construction Anticipated Within Five to Seven Years 1,106 single family and multiple family units in east Dougherty hills. 100 units of medium/high density housing. 42 single family units in the Arroyo Vista area (south of Amador Valley Blvd.). Additional considerations for long-term projections are: A. If the Arroyo Vista development becomes part of Murray School District, enrollment would increase by about 100 students. B. For every 100 new housing units built, enrollment increased by approxi- mately 20 students. Co Our total enrollment for the next few years should stay about the same. This is a result of an equalization of the number of incOming students in kindergarten and the number of students leaving the sixth, seventh, and eighth grades. V. FUTURE ACTION It is our recommendation that at the July 16th meeting the Board receive this report and discuss any technical questions about the report itself and the data herein. We further recommend that any discussion of the relative merits, if any, of the alternatives or any other alternatives that the Board might devise, be postponed to the September 10th meeting. Based upon the findings of the Board at the September lOth meeting, the Board can at that time elect to take action or schedule the item for further discussion. Page l0 July ll, 1984 In evaluating the alternatives the following should be considered: A. The Board's Citizen Advisory Committee recommended that Fallon School be retained for community use. Be Projections of lease revenues are based upon the assumption that the entire site will be leased. That may be optimistic, particularly the lease of multi-use buildings and specialized classrooms, such as wood shop and home economics classrooms. C. Expenses of remodeling will reduce the net return of several of the alternatives. URRAY SChOOl DISTRICT TO: FROM: DATE: RE: Board of Trustees Richard F. Cochran Stanley L. Maleski July 11, 1984 Item # E-3: Tennis Courts - City of Dublin BACKGROUND The City of Dublin has expressed interest in acquiring a five acre parcel from the total acreage from the Fallon/Kolb Park site. This site would be' developed for park purposes. The site the City is interested in need not actually include the area currently designated as Kolb Park. Whatever acreage the City acquires it is our understanding that the City would completely redevelop the site. Kolb Park, as it is currently developed, is not satisfactory in terms of community use, as well as safety surveil- lance. Whichever five acres the City eventually acquires, it should include the tennis courts that currently exist between Kolb Park and the District Office. The City is interested in acquiring the tennis courts at this time. It is our understanding that the City's agreement with a proposed developer of a site elsewhere in the City provides for the acquisition and rehabilitation of the Kolb tennis courts. The City has expressed their interest in acquiring the title to the tennis courts and, at this writing, we are awaiting further communications from them. Legal counsel has advised the City that they are entitled to acquire the pro- perty under the Naylor Bill; that is, at 25% of market value. The City Manager has said'he needs to meet with the City Park and Recreation Department, as well as the City Counsel, to develop a proposal. The proposal will be ~resente~ to the ~oard of Trustees at the Septemher 10 study session when the disposition of school property will be discussed. RECOMMENDED ACTION Information only. RFC/SLM:lb m 1A SAME& KIP, (d ' I i x2m;