CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
6/12/2023
1 SUBJECT:
Appropriation from Disaster Accounting Fund (Fund 38) and Deposit of funds into the State of California Condemnation Fund related to City of Pacifica v. Tong, San Mateo Superior Court Case No. 18CIV05455
RECOMMENDED ACTION:
Authorize a deposit of $1,923,500 into the State of California Condemnation Fund related to City of Pacifica v. Tong, San Mateo Superior Court Case No. 18CIV05455; and approve a Resolution amending the FY 2022-23 Budget to include the additional appropriation of this amount from the available fund balance of the Disaster Accounting Fund (Fund 38).
STAFF CONTACT:
Michelle Marchetta Kenyon, City Attorney
Kevin Woodhouse, City Manager
650-738-7409
[email protected]
BACKGROUND/DISCUSSION:
I. Summary
On October 9, 2018, the City filed a complaint in eminent domain to condemn that certain approximately 74,670 square foot property located at 310 and 320 Esplanade Avenue, Pacifica, California (APN 009-413-010 and 009-413-020) (“Property”) for the 310-330 Esplanade Infrastructure Preservation Project (the “Project”). The Project will build a shoreline protection structure on the Property that will prevent further coastal erosion and damage to Esplanade Avenue and public infrastructure contained therein.
Before the City filed suit, an appraiser opined that the Property’s fair market value was $76,500.
On November 28, 2018, the City deposited $76,500 into the State of California Condemnation Fund as a deposit of probable just compensation (“Deposit”).
On April 24, 2023, 2023, following a two-day trial, the Honorable Marie Weiner of the San Mateo Superior Court entered a Statement of Decision determining that the Property’s fair market value is $2 million. The City’s special counsel believes strongly that this fair market value determination is in error. On May 22, 2023, Judge Weiner issued an order requiring the City to increase the Deposit from $76,500 to $2 million within thirty days (i.e., by June 21, 2023). To preserve the City’s ability to appeal the underlying ruling by the Court, the City must deposit an additional $1,923,500 into the Condemnation Fund (to bring the total amount on deposit to $2 million) or its condemnation action could be deemed abandoned and the City’s right to appeal the Judgment waived. The $2 million will remain in the Condemnation Fund until the action is fully adjudicated, including any potential appeal of the decision.
Pacifica City Council 2
June 12, 2023
FISCAL IMPACT:
The additional $1,923,500 will be appropriated and expensed from the Disaster Accounting Fund 38, reducing the current FY 2022-23 Projected Ending Fund balance to $5,992,411 in that fund. This reduction in the fund balance will be factored into the FY 2023-24 Budget development process.
ORIGINATED BY:
City Manager's Office
City Attorney's Office
ATTACHMENT LIST:
Pacifica City Council 3
June 12, 2023
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA TO AMEND THE FY 2022-23 BUDGET TO INCLUDE ADDITIONAL APPROPRIATION AND EXPENSE FROM THE DISASTER ACCOUNTING FUND IN THE AMOUNT OF $1,922,500 WHEREAS, the City Council adopted the FY 2022-23 Operating and Capital Budget on June 27, 2022; and
WHEREAS, the City filed a complaint in eminent domain to condemn portion of property located at 310 and 320 Esplanade Avenue (APN 009-413-010 and 009-413-020) for the 310- 330 Esplanade Infrastructure Preservation Project; and
WHEREAS, the City deposited an appraised property’s fair market value of $76,500 into the State of California Condemnation Fund as a deposit of probable just compensation; and WHEREAS, On May 22, 2023 the trial court issued an order requiring the City to increase the deposit from $76,500 to $2 million within thirty days; and NOW THEREFORE THE PACIFICA CITY COUNCIL RESOLVES AS FOLLOWS:
The FY 2022-23 Budget shall be amended to include an additional appropriation of $1,923,500 from the available fund balance of the Disaster Accounting Fund (Fund 38) and deposit these funds in the State of California Condemnation Fund.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 12th day of June 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney