Members of the public may address the City Council on any item shown on the agenda or matter of the Council’s authority after completion of “Request to Address the Council Form” available in the lobby of the Council Chambers or in the City Clerk’s office. This form must be completed 15 minutes prior to the scheduled meeting time. Pursuant to Section 54957.5 of the California Government Code, Any writings (Except for those writings which are exempt from disclosure) which are
distributed to all or a majority of the members of the City Council are available for public inspection in the lobby of the City Council Chambers and in the office of the City Clerk during regular business hours.
COMPTON CITY COUNCIL
AGENDA
07/18/2023
5:30 PM
OPENING
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
ROLL CALL
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
COMMENDATORY RESOLUTIONS/PRESENTATIONS
1. PRESENTATION: Recognizing The Theta Alpha Omega Chapter of Alpha Kappa Alpha Sorority, Inc. - Beautify The City of Compton by planting trees. - Mayor Emma Sharif
-2- City Council Agenda
7/18/2023 5:30PM
REGULAR AGENDA
CITY MANAGER'S REPORT
2. POWERPOINT PRESENTATION:WATER DEPARTMENT - Rubbish Contract Update - (Rubbish Fees / Tax Roll Assessment)
NEW BUSINESS
3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGR TO ISSUE PURCHASE ORDERS TO ONE
OR MORE VENDORS (JANKOVICH, SC FUELS, AND WOOD OIL) FOR THE
PURCHASE OF GASOLINE FOR THE CITY'S FLEET IN AN AMOUNT NOT TO EXCEED THREE HUNDRED THOUSAND DOLLARS ($300,000)
4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION NO. 25,532 AMENDING THE FISCAL YEAR 2023- 2024 BUDGET APPROPRIATING FUNDS FROM FUND BALANCE AND
AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO ELK GROVE AUTO GROUP FOR THE PURCHASE OF SEVEN FLEET VEHICLES ($206,725)
5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON DECLARING THAT CERTAIN PROPERTY LOCATED AT 1434 W. COMPTON
BOULEVARD IN THE CITY OF COMPTON IS EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTIONS 54221(b) AND 54221(f)(1)(A),
APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE
CITY AND LANDSPIRE GROUP LLC WITH RESPECT TO THE PROPOSED
SALE OF THE PROPERTY TO LANDSPIRE GROUP LLC AND THE
DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT THEREON,
FINDING THAT THIS ACTION IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), AND TAKING RELATED ACTIONS.
COUNCIL COMMENTS
ADJOURNMENT
NEXT REGULAR MEETING: 7/25/2023 5:30PM
Visit our website at http://www.comptoncity.org
July 18, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: STREET SUPERINTENDENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ISSUE PURCHASE ORDERS
TO ONE OR MORE VENDORS (JANKOVICH, SC FUELS AND WOOD
OIL) FOR THE PURCHASE OF GASOLINE FOR THE CITY’S FLEET IN
AN AMOUNT NOT TO EXCEED THREE HUNDRED THOUSAND
DOLLARS ($300,000)
SUMMARY
This resolution will authorize the City Manager to establish purchase orders to one or more vendors (Jankovich, SC Fuels and Wood Oil) for the purchase of regular and diesel fuel for the City of Compton’s fleet in an amount not to exceed Three Hundred Thousand dollars ($300,000.00).
BACKGROUND
The Fleet Operations Division is responsible for the management and leadership of the mechanics shop and other field personnel. The Fleet Maintenance Division works with departments to meet vehicle and equipment readiness requirements and performs maintenance/repairs of vehicles and equipment used by City of Compton departments.
The Fleet Operations - Fuel Division is responsible for the acquisition of unleaded and diesel fuel for citywide use. The Fuel Division manages delivery of fuel to city sites and conducts daily fuel site inspections to meet local, state and federal reporting requirements and repairs, monitors and maintains fuel sites.
The price and availability of fuel has been unpredictable during previous fiscal years and has caused the Public Works Department to request the ability to purchase from multiple fuel vendors during the fiscal year. The Public Works Department is requesting the authority to obtain the lowest fuel prices per gallon from three (3) fuel providers:
Jankovich, SC Fuels and Wood Oil who all provide fuel service to local government and other business’ fueling stations.
STATEMENT OF THE ISSUE
The Public Works Street Maintenance – Fleet Division is responsible for providing fuel to citywide vehicles and equipment. Staff is requesting the ability to purchase fuel for fiscal year 2023-2024 (i.e. July 1, 2023 – June 30, 2024) in the amount of Three Hundred Thousand dollars $300,000.00.
3.3.3. P.O. to Jankovich, SC Fuels and Wood Oil for the Purchase of Fuel July 18, 2023
The funding to be allocated to one or more of the following fuel vendors:
Jankovich
SC Fuels
Wood Oil
Staff solicited the following fuel quotes:
Company Name Red Diesel Fuel - Cents per 7600
gallons (Margin over OPIS Daily
Average)
87 Regular Fuel - Cents per 7600
gallons (Margin over OPIS Daily
Average)
Jankovich 0.0716 0.0700
SC Fuels 0.02 0.06
Wood Oil 0.18 0.18
OPIS (Oil Price Information Service) is a company providing pricing and news information for petroleum pricing, news and analysis for gasoline, diesel, ethanol, biodiesel, LP-gas, jet fuel, crude, natural gas, etc. (OPIS is the only provider of U.S. spot, rack and retail prices for petroleum supplier information).
FINANCIAL IMPACT
Funding in the amount of $300,000.00 (Three Hundred Thousand Dollars) is available in the Fiscal Year 2023-2024 Adopted Budget in Account No. 6000-720-000-4228 (Fleet).
RECOMMENDATION
It is recommended that the Mayor and City Council adopt the attached Resolution.
DAMION TIMMONS, STREET SUPERINTENDENT
PUBLIC WORKS STREET MAINTENANCE DEPARTMENT
APPROVED FOR FORWARDING:
THOMAS THOMAS
CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ISSUE PURCHASE ORDERS
TO ONE OR MORE FUEL VENDORS (JANKOVICH, SC FUELS AND
WOOD OIL) FOR THE PURCHASE OF GASOLINE FOR THE CITY’S
FLEET IN AN AMOUNT NOT TO EXCEED THREE HUNDRED
THOUSAND DOLLARS ($300,000)
WHEREAS,this resolution will authorize the City Manager to establish purchase orders to one or more vendors (Jankovich, SC Fuels and Wood Oil) for the purchase of regular and diesel fuel for the City of Compton’s fleet in an amount not to exceed Three Hundred Thousand dollars ($300,000.00); and
WHEREAS,the Fleet Operations Division is responsible for the management and leadership of the mechanics shop and other field personnel; and WHEREAS, the City of Compton Public Works Street Maintenance Department - Fleet Operations Division is responsible for the acquisition of gasoline for citywide use; and
WHEREAS, the Fuel Division manages delivery of fuel to city sites and conducts daily fuel site inspections to meet local, state and federal reporting requirements and repairs, monitors and maintains fuel sites; and
WHEREAS, the price and availability of fuel having been unpredictable during previous fiscal years and has caused the Public Works Department to request the ability to purchase from multiple fuel vendors during the fiscal year; and WHEREAS,the Public Works Street Maintenance Department requesting the authority to obtain the lowest fuel prices per gallon from three (3) fuel providers such as:
Jankovich, SC Fuels and Wood Oil who provide satisfactory fuel service to local government and other business’ fueling stations; and
WHEREAS, staff solicited the following fuel quotes from providers:
Company Name Red Diesel Fuel
Cents per 7600 gallons
(Margin over OPIS
Daily Average)
87 Regular Fuel
Cents per 7600
gallons (Margin over
OPIS Daily Average)
Jankovich 0.0716 0.0700
SC Fuels 0.02 0.06
Wood Oil 0.18 0.18
WHEREAS, funding for this expenditure is available in the Adopted 2023-2024 Fiscal Year Budget in Account Number 6000-720-000-4228 - Public Works Street Maintenance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1.That the City Manager is hereby authorized to issue purchase orders to one or more fuel vendors (Jankovich, SC Fuels and Wood Oil) for the purchase of gasoline and diesel fuel for the City of Compton’s Fleet in the amount of $300,000 from account number 6000-720-000-4228.
SECTION 2.That funding for this expenditure ($300,000) is allocated in the Adopted Fiscal Year 2023-2024 in Account Number 6000-720-000-4228 - Public Works Street Maintenance Department.
SECTION 3.That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Controller, Public Works Street Maintenance Department.
RESOLUTION NO. _____________
PAGE 2
SECTION 6.That the Mayor shall sign and the City Clerk shall attest to the adoption of this resolution.
ADOPTED this ______ day of _________________2023.
______________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing resolution was adopted by the City Council, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the _______ day of _________________, 2023.
That said resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
___________________________________
CITY CLERK OF THE CITY OF COMPTON
July 18, 2023
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: PUBLIC WORKS - STREET MAINTENANCE DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION NO. 25,532, AMENDING THE FISCAL
YEAR 2023-2024 BUDGET APPROPRIATING FUNDS FROM FUND
BALANCE AND AUTHORIZING THE ISSUANCE OF A PURCHASE
ORDER TO ELK GROVE AUTO GROUP FOR THE PURCHASE OF
SEVEN FLEET VEHICLES ($206,725)
SUMMARY
Adoption of the attached resolution will rescind Resolution No. 25,532, adopted by the City Council on July 27, 2021, amend the Fiscal Year 2023-2024 Budget of the Public Works – Street Maintenance Department to appropriate funds from fund balance to increase expenditures in the amount of Two Hundred Six Thousand Seven Hundred and Twenty-Five Dollars ($206,725) and authorize the City Manager to issue a purchase order in the amount of Two Hundred Six Thousand Seven Hundred and Twenty-Five Dollars ($206,725) to Elk Grove Auto Group for the purchase of seven (7) Dodge Ram 1500 Classic Tradesman Trucks.
BACKGROUND
The City of Compton’s fleet has aged out of its useful lifecycle in accordance with industry practice of replacing vehicles every eight to ten years as the majority of the vehicles having been in service over fifteen (15) years. In addition to age, the vehicles have been determined to be inadequate to meet the current needs of City Departments.
Since 2019 acquiring vehicles has been a challenge for municipalities to acquire new vehicles due to the shortage of materials, namely computer chips, required to manufacture vehicles. Staff has been working to acquire new vehicles since 2021 when City Council approved the purchase of vehicles, primarily Dodge Ram Trucks, under Resolution No. 25,441 in April of 2021. That resolution had to be rescinded due to the Dodge manufacturer cancelling the City’s order of trucks due to the shortage of available vehicles. Staff came back to City Council and requested authorization to purchase vehicles through Chevrolet under Resolution No. 25,532 in July of 2021. That order also was cancelled by the manufacturer, but the vendor notified the City that an order of Dodge Ram Trucks had become available for 72 trucks.
Recognizing the need for the trucks, the availability of vehicles being scarce, and Elk Grove serving as the vendor for both Dodge and Chevrolet trucks, the order was authorized.
4.4.4. Staff Report –Rescinding Resolution 25,532 and Amending 2023-24 FY Budget Authorizing P.O. to Elk Grove Auto Group
for Fleet Vehicle Purchase
July 18, 2023, Page 2 of 3
STATEMENT OF THE ISSUE
Staff brought a resolution before City Council requesting that Resolution 25,532 be rescinded and authorization be given to purchase the initial Dodge Ram Trucks. Council requested that improvements to the security of the facilities be in place before the vehicles be authorized. In the interim of getting Council approval, a misunderstanding by the vendor resulted in seven (7) of the trucks being delivered prematurely. The vehicles were outfitted with modifications (tow hitches, tool boxes, etc.) and city logos for the Code Enforcement Division of the Community Improvement Department preventing them from being sent back. These trucks are needed to allow staff to impound violators in a timely manner. Therefore, staff is requesting authorization to pay for these seven (7) Dodge Ram Trucks.
It is necessary to rescind Resolution 25,532 and authorize a purchase order for Elk Grove Auto Group in the amount of Two Hundred Six Thousand Seven Hundred and Twenty- Five Dollars. ($206,725) to pay for the seven (7) Dodge Ram 1500 Classic Tradesman trucks.
The remaining trucks will have to be purchased at a later date once the security improvements have been completed to the satisfaction of the City Council.
FISCAL IMPACT
Funds are available in the Equipment Rental Fund Balance for the Fiscal Year 2023-2024 Budget and will need to be amended as follows:
Increase
Expenditure
Account Description Amount
6000-720-000-4333 Equipment Rental – Automotive Equipment $206,725
The purchase order will be allocated to Elk Grove Auto Group in an “amount not to exceed” Two Hundred Six Thousand Seven Hundred and Twenty-Five Dollars. ($206,725).
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
DAMION TIMMONS, STREET SUPERINTENDENT
PUBLIC WORKS-STREET MAINTENANCE DEPARTMENT
Staff Report –Rescinding Resolution 25,532 and Amending 2022-23 FY Budget Authorizing P.O. to Elk Grove Auto Group
for Fleet Vehicle Purchase
July 18, 2023, Page 3 of 3
APPROVED FOR FORWARDING:
THOMAS THOMAS
CITY MANAGER
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION NO. 25,532, AMENDING THE FISCAL
YEAR 2023-2024 BUDGET APPROPRIATING FUNDS FROM FUND
BALANCE AND AUTHORIZING THE ISSUANCE OF A PURCHASE
ORDER TO ELK GROVE AUTO GROUP FOR THE PURCHASE OF
SEVEN FLEET VEHICLES ($206,725)
WHEREAS, the City of Compton’s fleet has aged out of its useful lifecycle in accordance with industry practice of replacing vehicles every eight to ten years as the majority of the vehicles having been in service over fifteen (15) years. In addition to age, the vehicles have been determined to be inadequate to meet the current needs of City Departments; and
WHEREAS, since 2019 acquiring vehicles has been a challenge for municipalities to acquire new vehicles due to the shortage of materials, namely computer chips, required to manufacture vehicles. Staff has been working to acquire new vehicles since 2021 when City Council approved the purchase of vehicles, primarily Dodge Ram Trucks, under Resolution No. 25,441 in April of 2021; and
WHEREAS, that resolution had to be rescinded due to the Dodge manufacturer cancelling the City’s order of trucks due to the shortage of available vehicles. Staff came back to City Council and requested authorization to purchase vehicles through Chevrolet under Resolution No. 25,532 in July of 2021. That order also was cancelled by the manufacturer, but the vendor notified the City that an order of Dodge Ram Trucks had become available for 72 trucks; and
WHEREAS, recognizing the need for the trucks, the availability of vehicles being scarce, and Elk Grove serving as the vendor for both Dodge and Chevrolet trucks, the order was authorized
WHEREAS, staff brought a resolution before City Council requesting that Resolution 25,532 be rescinded and authorization be given to purchase the initial Dodge Ram Trucks. Council requested that improvements to the security of the facilities be in place before the vehicles be authorized. In the interim of getting Council approval, a misunderstanding by the vendor resulted in seven (7) of the trucks being delivered prematurely; and
WHEREAS, the vehicles were outfitted with modifications (tow hitches, tool boxes, etc.) and city logos for the Code Enforcement Division of the Community Improvement Department preventing them from being sent back. These trucks are needed to allow staff to impound violators in a timely manner. Therefore, staff is requesting authorization to pay for these seven (7) Dodge Ram Trucks; and
WHEREAS, it is necessary to rescind Resolution 25,532 and authorize a purchase order for Elk Grove Auto Group in the amount of Two Hundred Six Thousand Seven Hundred and Twenty-Five Dollars. ($206,725) to pay for the seven (7) Dodge Ram 1500 Classic Tradesman trucks; and
WHEREAS, the remaining trucks will have to be purchased at a later date once the security improvements have been completed to the satisfaction of the City Council
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Section 1.That Resolution No. 25,532, adopted by the City Council on July 27 th, 2021, is hereby rescinded.
Resolution No. ___________________
Section 2. That the City Manager is hereby authorized to issue a purchase order to Elk Grove Auto Group in “an amount not to exceed” Two Hundred Six Thousand Seven Hundred and Twenty-Five Dollars ($206,725).
Section 3. Funds for this expenditure are available in the Fiscal Year 2023-2024 Budget in Account Number 6000-720-000-4333:
Increase Expenditure Account Description Amount
6000-720-000-4333 Equipment Rental – Automotive Equipment $206,725 Section 4.The purchase order will be allocated to Elk Grove Auto Group in an “amount not to exceed” Two Hundred Six Thousand Seven Hundred and Twenty-Five Dollars. ($206,725).
.
Section 5.That a copy of this Resolution shall be filed in the offices of the City Manager, City Attorney, City Clerk and Public Works-Street Maintenance Departments.
Section 6.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this _________ day of ___________, 2023.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the ________ day of _______________, 2023.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
___________________________________
CITY CLERK OF THE CITY OF COMPTON
July 18, 2023
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON DECLARING THAT CERTAIN PROPERTY LOCATED AT 1434 W.
COMPTON BOULEVARD IN THE CITY OF COMPTON IS EXEMPT
SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTIONS
54221(b) AND 54221(f)(1)(A), APPROVING AN EXCLUSIVE
NEGOTIATING AGREEMENT BETWEEN THE CITY AND LANDSPIRE
GROUP LLC WITH RESPECT TO THE PROPOSED SALE OF THE
PROPERTY TO LANDSPIRE GROUP LLC AND THE DEVELOPMENT
OF AN AFFORDABLE HOUSING PROJECT THEREON, FINDING THAT
THIS ACTION IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), AND TAKING RELATED
ACTIONS.
SUMMARY
Staff respectfully requests the City Council to adopt the attached Resolution declaring that the property owned by the City and located at 1434 W. Compton Boulevard (the “Property”) is exempt surplus land under the Surplus Land Act (Government Code Section 54220-54234) (the “SLA”), and approving the execution and delivery of a new Exclusive Negotiating Agreement (the “ENA”) between the City, as the Housing Successor to the former Community Redevelopment Agency of the City of Compton (the “City”), and Landspire Group LLC (the “Developer”),
BACKGROUND
The Developer previously entered into an ENA with the City on September 15, 2020 for the development of this property, but it expired and was not renewed.
Pursuant to Section 54221(b)(1) of the SLA, the City Council must take formal action in a regular public meeting to declare the Property “surplus land” or “exempt surplus land” before the City Council takes action to dispose of the Property. The SLA will not apply to the disposition of the Property if the Property is exempt surplus land as defined in Section 54221(f)(1) of the SLA.
Section 54221(f)(1)(A) of the SLA defines “exempt surplus land” to include surplus land that is transferred pursuant to Government Code Section 37364.
Government Code Section 37364 authorizes a city to sell, lease, exchange, quitclaim, convey, or otherwise dispose of real property to provide housing affordable to persons and families of low or moderate income provided that the following conditions are met:
(a) Not less than 80 percent of the area of the parcel will be used for the development of housing; and
5.5.5. Staff Report – Resolution CC ENA -1434 W. Compton Bl
(b) Not less than 40 percent of the total number of those housing units developed on the parcel shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low-income households; and
(c) Dwelling units produced for persons and families of low or moderate income under Government Code Section 37364 shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years, with such regulatory agreement recorded in the office of the county recorder in which the housing development is located.
The Developer has proposed to purchase the Property from the City for the purpose of developing an affordable housing project on the Property consisting of 75 apartments and has requested the City to enter into an ENA for the purpose of negotiating on an exclusive basis to establish the terms and conditions of an agreement for the sale of the Property to the Developer. The Developer has proposed an affordable housing project that will comply with Government Code Section 37364. The project includes 75 affordable housing units to be built at 1434 W. Compton Boulevard, a 62,262 square foot site. The City Council must provide a copy of the Resolution to the California Department of Housing and Community Development (“HCD”) at least 30 days prior to the disposition of the Property. The State Legislature has authorized HCD to determine whether actions of local agencies comply with the SLA.
STATEMENT OF THE ISSUE
Because the proposed housing development will meet the requirements of Government Code Section 37364, staff recommends that the City Council declare the Property to be exempt surplus land pursuant to Government Code Sections 54221(b) and 54221(f)(1)(A). The attached Resolution contains a declaration of exemption. Upon adoption of the attached Resolution, staff will provide a copy of the Resolution to HCD.
The attached Resolution also contains a finding that this action is exempt from CEQA.
FISCAL IMPACT
There is no fiscal impact associated with the adoption of the attached Resolution.
RECOMMENDATION
Staff requests the City Council adopt the attached Resolution.
CECIL FLOURNOY
COMMUNITY DEVELOPMENT DIRECTOR
APPROVED FOR FORWARDING:
Staff Report – Resolution CC ENA -1434 W. Compton Bl
JEROME G. GROOMES
CITY MANAGER
RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON DECLARING THAT CERTAIN PROPERTY LOCATED AT
1434 W. COMPTON BOULEVARD IN THE CITY OF COMPTON IS
EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE
SECTIONS 54221(b) AND 54221(f)(1)(A), APPROVING AN EXCLUSIVE
NEGOTIATING AGREEMENT BETWEEN THE CITY AND
LANDSPIRE GROUP LLC WITH RESPECT TO THE PROPOSED SALE
OF THE PROPERTY TO LANDSPIRE GROUP LLC AND THE
DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT
THEREON, FINDING THAT THE PROJECT IS EXEMPT FROM CEQA,
AND TAKING RELATED ACTIONS
WHEREAS, the City of Compton (“City”) is the owner in fee simple of that certain real property located at 1434 W. Compton Boulevard in the City of Compton which is further described in Exhibit “A”, attached hereto and incorporated herein by reference (the “Property); and
WHEREAS, the City desires to sell the Property for the development of an affordable housing project thereon; and
WHEREAS, pursuant to Section 54221(b)(1) of the Surplus Land Act (Government Code Sections 54220-54234) (the “Act”), the City Council must take formal action in a regular public meeting to declare the Property “surplus land” or “exempt surplus land” before the City Council takes action to dispose of the Property; and
WHEREAS, the Act shall not apply to the disposition of the Property if the Property is exempt surplus land as defined in Government Code Section 54221(f)(1); and WHEREAS, Government Code Section 54221(f)(1)(A) defines “exempt surplus land” to include surplus land that is transferred pursuant to Government Code Section 37364; and WHEREAS, Government Code Section 37364 authorizes a city to sell, lease, exchange, quitclaim, convey, or otherwise dispose of real property to provide housing affordable to persons and families of low or moderate income provided that the following conditions are met:
(a) Not less than 80 percent of the area of the parcel will be used for the development of housing; and
(b) Not less than 40 percent of the total number of those housing units developed on the parcel shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low-income households; and
(c) Dwelling units produced for persons and families of low or moderate income under Government Code Section 37364 shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years, with such regulatory agreement recorded in the office of the county recorder in which the housing development is located; and
WHEREAS, Landspire Group LLC has proposed to purchase the Property for the purpose of developing an affordable housing project on the Property consisting of 75 affordable apartments (“Proposal”); and
WHEREAS, staff has recommended that the City enter into an Exclusive Negotiating Agreement (“ENA”) with Landspire Group LLC for the purpose of negotiating on an exclusive basis to establish the terms and conditions of an agreement for the sale of the Property to Landspire Group LLC and the construction of a housing development on the Property by Landspire Group LLC which complies with the Proposal and Government Code Section 37364; and
WHEREAS, because the proposed housing development will meet the requirements of Government Code Section 37364, staff has also recommended that the City Council declare the Property to be exempt surplus land pursuant to Government Code Sections 54221(b) and 542321(f)(1)(A); and
-2-
WHEREAS, the City Council desires to approve an ENA with Landspire Group LLC and declare the Property exempt surplus land pursuant to Government Code Section 54221(f)(1)(A); and
WHEREAS, pursuant to the Surplus Land Act Guidelines issued by the California Department of Housing and Community Development (“HCD”) to interpret and implement the Act, the City Council’s determination that the Property is exempt surplus land must be provided to HCD for its review at least 30 days prior to disposition;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON HEREBY RESOLVES AS FOLLOWS:
SECTION 1. That the above recitals are true and correct and are a substantive part of this Resolution.
SECTION 2. That the City Council hereby finds that the Property is not being used, and is not planned to be used, for City work or operations and is not necessary for the City’s use within the meaning of the Act and declares pursuant to Government Code Sections 54221(b) and 54221(f)(1)(A), that the Property is exempt surplus land because the City intends to sell the Property for the development of an affordable housing project on the Property which complies with the requirements of Government Code Section 37364.
SECTION 3.That Upon the advice and approval of the City Attorney, the City Manager is hereby authorized to execute and deliver, for and in the name of the City, the ENA substantially in the form attached hereto as Exhibit “B” and incorporated hereby by reference, with such non-substantive changes therein as the City Manager may approve (such approval to be conclusively evidenced by the execution and delivery thereof).
SECTION 4.That staff of the City are hereby authorized and directed to submit a copy of this Resolution to HCD in the manner required by HCD.
SECTION 5.That the staff and officers of the City are hereby authorized, jointly and severally, to take any other such actions as they deem necessary or proper to effectuate the purposes of this Resolution, and all actions previously taken are hereby ratified.
SECTION 6.That this Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). The City Council hereby finds this action is statutorily and categorically exempt from CEQA.
SECTION 7.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this _______ day of ___________, 2023.
____________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
_________________________________________
CITY CLERK OF THE CITY OF COMPTON
-3-
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, do hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor, and attested by the City Clerk at a regular meeting thereof held on the _________ day of ________, 2023.
That said Resolution was adopted by the following vote, to wit:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
__________________________________________
CITY CLERK OF THE CITY OF COMPTON
EXHIBIT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
Real property in the City of Compton, County of Los Angeles, State of California, described as follows:
TR=6627 LOTS 10 THRU 24 AND EX OF STS LOT 25 BLK F
APN NUMBER:
6142-006-901
EXHIBIT B
EXCLUSIVE NEGOTIATING AGREEMENT
-1-
EXCLUSIVE NEGOTIATING AGREEMENT
This EXCLUSIVE NEGOTIATING AGREEMENT (this “Agreement”) is dated as of July __, 2023 (the “Effective Date”), and is entered into, by and between the CITY OF COMPTON, a municipal corporation (the “City”) and LANDSPIRE GROUP LLC, a Nevada limited liability company, or its successors and assigns (the “Purchaser”).
R E C I T A L S
A. The City of Compton, State of California, owns the land that is located at 1434 W.
Compton Blvd., Compton, CA 90220, and further described in Attachment No. 1 (the “Site”).
B. The City has instructed the staff to proceed with this Agreement between City and Purchaser to negotiate on an exclusive basis to establish the terms and conditions of a purchase and sale agreement (“PSA”) between the City and the Purchaser (each, a “Party” and jointly, the “Parties”) that would result in the sale of the Site by the City to Purchaser and the development by the Purchaser on the Site of a residential project consisting of 75 apartments which complies with Government Code Section 37364.
C. The primary purpose of this Agreement is to establish a period during which the Parties shall negotiate the terms of a PSA.
NOW, THEREFORE, the parties hereto agree as follows:
1. The term of this Agreement shall commence on the date hereof and shall end on the date that is three months thereafter (the “ENA Period”), during which period the Parties agree to negotiate diligently and in good faith with one another. The City Manager shall have the authority (in the exercise of his sole discretion) to enter into non- substantial amendments to this Agreement including the extension of the ENA Period, provided they are in writing and signed by both the City Manager and the Purchaser.
2. Either Party may terminate this Agreement if the other Party fails to comply with or perform any provisions of this Agreement and fails to cure the default within ten (10) days after written notice from the other party. In addition, the City Manager may terminate this Agreement after providing ten (10) days written notice to the Purchaser if the City Manager, in his or her sole discretion, determines that such termination is necessary or appropriate in connection with the City’s compliance with the Surplus Land Act (Government Code Sections 54220-54234) and the Surplus Land Act Guidelines issued by the California Department of Housing and Community Development with respect to the disposition of the Site.
3. During the ENA Period, the City shall not negotiate with any person or entity other than the Purchaser for the sale, lease or development of the Site.
4. The Purchaser shall deliver the materials and information identified on Attachment No. 2 attached hereto to the City within the times set forth on Attachment No. 2. The City shall perform the tasks set forth in Attachment No. 3. within a reasonable timeframe following the Effective Date. Unless otherwise required by applicable law, the information exchanged between the City and the Purchaser shall be kept confidential (the “Confidential Information”) and neither -2-
Party shall disclose any Confidential Information to any third party or use the Confidential Information for any purpose other than in connection with the proposed transaction hereunder.
Notwithstanding the foregoing, the Parties may, but only to the limited extent necessary, disclose the Confidential Information to those agents, employees, managers, members, shareholders, officers and directors of the receiving Party having a need to know the Confidential Information to further the proposed transaction.
5. Throughout the ENA Period, City staff shall be reasonably available to meet with the Purchaser to discuss the proposed PSA.
6. The Purchaser and the City understand and agree that neither is under any obligation whatsoever to enter into a PSA. In the event of the expiration or earlier termination of this Agreement, the City shall be free at the City's option to negotiate with any persons or entities with respect to the sale, lease and/or development of the Site.
7. This Agreement may not be assigned by the Purchaser without the prior written consent of the City, in its sole and absolute discretion. The City acknowledges, however, that the Purchaser is in the process of forming a new affiliate entity, Landspire Garvey, LLC (“Landspire Garvey”) to hold title to the Site, and the City will allow assignment to Landspire Garvey upon its approval of Landspire Garvey’s governing documents, in its good faith and reasonable discretion.
8. The City may utilize the Site during the ENA Period for storage, parking, logistics or for any other City purposes. The City will provide the Purchaser with seven (7) days’ written notice prior to any temporary use of the Site.
9. Any notice, request, approval or other communication to be provided by one party to the other shall be in writing and provided by certified mail, a reputable overnight delivery service (such as Federal Express) or by email (as indicated below) and addressed as follows:
If to the City: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: Jerome Groomes, City Manager
Email: [email protected]
Attn: Cecil Flournoy
Community Development Director
Email: [email protected]
If to the Purchaser: LandSpire Group, LLC
2082 Michelson Dr
Suite 219
Irvine, CA 92612
Attn: Justin Davis, Chief Operating Officer
Email: [email protected]
10. This Agreement constitutes the entire agreement of the Parties hereto with respect to the subject matter hereof. There are no other agreements or understandings between the Parties -3-
with respect to the subject matter hereof or any related subject and no representations by either Party to the other have been made as an inducement to enter into this Agreement. All prior negotiations between the parties are superseded by this Agreement.
11. This Agreement may not be altered, amended or modified except by a writing executed by all Parties.
12. If any Party should bring any legal action or proceeding relating to this agreement or to enforce any provision hereof, or if the Parties agree to arbitration or mediation relating to this Agreement, each party shall bear its own attorneys’ fees and costs incurred in compelling the enforcement of this Agreement. The Parties agree that any legal action or proceeding or agreed- upon arbitration or mediation shall be filed in and shall occur in the County of Los Angeles.
13. The interpretation and enforcement of this Agreement shall be governed by the laws of the State of California.
14. Time is of the essence of each and every provision hereof.
15. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. [Remainder of this page intentionally left blank]
[Signatures follow on next page]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above.
PURCHASER:
LANDSPIRE GROUP, LLC,
a Nevada limited liability company
By:
Name: ,
Title:
By:
Name:
Title:
CITY:
CITY OF COMPTON,
a municipal corporation
By:
Name: Jerome G. Groomes
Title: City Manager
ATTEST:
Vernell McDaniel, City Clerk
APPROVED AS TO FORM:
By:
Eric J. Perrodin, City Attorney
-Attachment 1 - Page-1-
ATTACHMENT 1
EXHIBIT “A”
Legal Description of the Land
Real property in the City of Compton, County of Los Angeles, State of California, described as follows:
TR=6627 LOTS 10 THRU 24 AND EX OF STS LOT 25 BLK F
APN NUMBERS:
6142-006-901
-Attachment 2 - Page -1-
ATTACHMENT 2
MATERIALS TO BE DELIVERED BY PURCHASER
Item Date Delivered
1. Development Budget. 60 days following the Effective Date
2. Sources and uses of funds for the development. 75 days following the Effective Date
3. Development Schedule, including key
milestones.
75 days following the Effective Date
4. Reserved. days following the Effective
Date
5. Status Report on the Project. Commencing 14 days following the Effective Date
-Attachment 3 - Page -1-
ATTACHMENT 3
CITY TASKS
1. Provide to Purchaser all written information regarding the Site (including any Phase I and Phase II environmental reports) that is in the possession of the City (to the extent not previously delivered to Purchaser) to the extent it is both material and not privileged (under the attorney-client or attorney work product privileged).
2. Obtain an appraisal of the Site (if necessary).
3. Obtain a title report for the Site and deliver a copy thereof to the Purchaser.
4. Prepare first draft of PSA and revise drafts of the PSA as may be required during negotiations with the Purchaser.