HomeMy WebLinkAbout2002-01-15; City Council; 16521; Maintenance Expenditures Farmers PropertyCITY OF CARLSBAD - AGENDA BILL
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CITY Am. -2 THE FARMERS INSURANCE PROPERTY ITG. 1 /I 5/02
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ALLOCATING FUNDS FOR MAINTENANCE EXPENDITURES AT
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RECOMMENDED ACTION:
Adopt Resolution No. doodbd? allocating funds from the City Council’s Contingency Account
to the Parks Maintenance Budget to offset maintenance expenditures at the Farmers Insurance
Property.
ITEM EXPLANATION:
In January 2002, the City will take ownership of the Farmers Insurance Property located on the
corner of El Camino Real and Faraday Avenue. As part of the property transaction, the City agreed
to lease back the property to the Farmer’s Insurance Company for a period of one year. A
stipulation of the agreement requires the City to maintain the exterior part of the property.
Expenditures that will be accrued by the City during the remainder of the fiscal year include
association fees, landscape maintenance, tree trimming, weed abatement, water, sewer and
irrigation. Please see memorandum dated December 26, 2001 and attached hereto as Exhibit “2
appropriated in the Fiscal-Year 2001-02 Budget for such expenditures.
regarding maintenance expenditures at the Farmers Insurance Property. Funding was not
Therefore, staff is recommending that the City allocate $37,300 from Council’s contingency account
to the Parks Maintenance Budget to help offset the maintenance expenditures anticipated at the
Farmers property for the remainder of the current fiscal year (FYOI-02). Staff will budget the
appropriate amount of funding for next fiscal year.
ENVIRONMENTAL REVIEW:
This project is exempt from the requirement of the California Environmental Quality Act (CEQA) per
Section 15302 of the State CEQA Guidelines and will not have any adverse significant impact on
the environment.
FISCAL IMPACT:
$37,300 is requested from the City Council’s Contingency Account. These funds are needed to
offset financial impacts to the Parks Maintenance Budget. The Council’s Contingency Account has
adequate monies to supplement these costs for the remainder of the fiscal year. All future
maintenance expenditures (after July 1) will be programmed into the 2002-03 Budget.
EXHIBITS:
1. Resolution No. ~~-&?fallocating funds from the City Council’s Contingency Account to the
Parks Maintenance Budget to offset maintenance expenditures at the Farmers Insurance
Property.
2. Memorandum dated December 26,2001.
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EXHIBIT 1
RESOLUTION NO. 2002-029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE TRANSFER OF FUNDS FROM THE CITY
COUNCIL CONTINGENCY ACCOUNT TO OFFSET MAINTENANCE
EXPENDITURES AT THE FARMERS INSURANCE PROPERTY.
WHEREAS, the City acquired ownership of the Farmers Insurance Property located at
581 5 El Camino Real and 2351 Faraday Avenue; and
WHEREAS, the City agreed to lease back the property to the Farmers Insurance
Company for a period of one year; and
WHEREAS, a stipulation of the agreement requires the City to maintain the exterior part
of the property; and
WHEREAS, funding for maintenance expenditures at this property was not budgeted in
the Fiscal-Year 2001-02 Budget; and
WHEREAS, additional funding is needed to ensure maintenance expenditures at. the
Farmers Insurance Property does not financially impact the Parks Maintenance Budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
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Maintenance Budget to offset maintenance expenditures at said property.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
held on the =day of JANUARY , 2002 by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall
NOES: None
(SEAL)
EXHIBIT 2
December 26,2001
TO: ECONOMIC DEVELOPMENT MANAGER
FROM: Public Works Manager, General Services
FARMERS BUILDING EXTERIOR MAINTENANCE COSTS
I have been in contact with the Farmers Building Maintenance Superintendent regarding
current landscape costs for this facility. The existing budget for landscape services at
this property is approximately $67,000 per year. The costs are broken down as follows:
Association fees (for Right of Way landscape) $15,800 yr Landscape maintenance (entire site) $27,000 yr Tree trimming $3,000 yr
Weed abatement (vacant property) $2,000 yr Waterhewer & irrigation $19,500 yr
TOTAL $67,300 yr
It appears the City will have ownership of this building for six months of the 2001-2002
fiscal year. Therefore the Parks Division is requesting funding in the amount of $33,700
(1/2 of the years landscape maintenance costs) to cover the financial impact of this
facility on our maintenance activities, The above figures to do not include hardscape
maintenance costs or any unforeseen building repairs that may arise.
Thankyou for your assistance with this matter.
c: Public Works Director
Management Analyst, General Services
Public Works Supervisor, Facilities Division
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