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RESOLUTION (ID#2340) DOC ID: 2340 F
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Sale of Property
From: Robert Eisenbeisz M/CC Meeting Date: 05/06/2013
Prepared by: Ryan Sandoval, (909) 384-5140
Dept: Public Works Ward(s): 6
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Establishing a Fair
Market Value and Sales Price and Declaring the Intention to Sell Real Property Owned by the
City of San Bernardino and Designated for Water Department Use, and Granting a Temporary
Construction Easement on Real Property Generally Located Southwesterly of Cajon Boulevard
and Devore Road, to the State of California Department of Transportation Relative to the I-15/1-
215 Devore Interchange Project and Setting a Public Hearing to Consider Said Sale. (#2340)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Motion: Authorize the Director of Public Works, or his designee, to proceed with the sale
of City owned real property to the State of California Department of
Transportation, generally located southwest of Cajon Boulevard and Devore Road
(APN 0349-174-10); and adopt the Resolution.
Synopsis of Previous Council Action:
None.
Background:
The State of California Department of Transportation (Caltrans) is currently in the planning and
design stage of the I-15/I-215 Devore Interchange Project (Project). Caltrans has identified a
portion of a .24 acre property owned by the City of San Bernardino and designated for the Water
Department (Department) use, fronting Old Cajon Boulevard (APN 0349-174-10) that will need
to be acquired by the State to accommodate the Project. In addition to the Caltrans land
acquisition request, Caltrans is also requesting a 1,698 square foot Temporary Construction
Easement (TCE) on a parcel owned by the Department fronting Cajon Boulevard (APN 0349-
173-29) for a thirty-six (36) month duration.
The proposed surplus parcel (APN 0349-174-10) consists of approximately .24 acres of
unimproved vacant land that is currently not maintained by the Department due to its remote
location. This property was acquired in fee by the City in 1977 from Southern California Edison
and designated for Water Department use with the intended purpose of allowing the construction
of a Water Department Chlorination-Pressure Regulating Station. The TCE is located on
property the City acquired in fee in 1981, also designated for Department use, which currently
has a water reservoir located on the property.
Caltrans presented an offer to the Department based on an appraisal prepared by Overland,
Pacific & Cutler, Inc., for both the partial property acquisition in the amount of$30,300 and the
Updated:4/30/2013 by Henry Empeno Jr.F 1*ace ?g 592.`_
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TCE in the amount of$1,700. The Department elected to have a second appraisal completed, as
allowed by law, by Smothers Appraisal for these properties, which was reimbursed by Caltrans.
Smothers Appraisal determined the fair market value of this parcel based on the following
criteria:
- The parcel requested by Caltrans is no longer required by the City or Department.
- A property appraisal was conducted by Smothers Appraisal for the Department to
confirm that the offer submitted by Caltrans is consistent with current fair market value.
The report concludes $53,737 is the estimated market value of the property as of
November 6, 2012. This value is based on a square footage cost of$5.50 per square foot
and 4,418 square foot area for APN 0349-174-10 and includes severance damages. The
per square foot cost was determined by six (6) comparable sales in the general area in
compliance with the Uniform Appraisal Standards for Federal Land Acquisitions, the
State of California Standards for Acquisitions of Land as well as USPAP and the
Appraisal Institute.
- A property appraisal was conducted by Smothers Appraisal for the Department to
confirm that the offer submitted by the State for the Temporary Construction Easement is
consistent with current fair market value. The report concludes the estimated rental
compensation of$2,800.00 as of November 6, 2012. The value of$2,800.00 is based on a
local monthly rental cost of $77.83 a month for thirty-six (36) months for the 1,698
square foot portion of APN 0349-173-29 requested by the State.
Staff has reviewed this appraisal and concurs with the determination of value.
Caltrans reviewed the Smothers Appraisal and made a counter offer to the Department to acquire
the entire .24 acre parcel, based on the severance damages incurred, at the square footage cost of
$5.50 per square foot based on the Smothers appraisal. The offer for the entire parcel was
$57,000. Caltrans also agreed to the value of$2,800 for the TCE.
On March 19, 2013, the San Bernardino Municipal Water Department Board of Water
Commissioners (Board), unanimously voted (Department memo attached) to recommend to the
Mayor and Common Council to declare the .24 acre property (APN 0349-174-10) surplus and
agree to the sales price of $57,000. In addition, they recommended approval of a grant of a
Temporary Construction Easement over APN 0349-173-29 for the term of thirty-six (36) months
for the amount of$2,800.
This property sale meets the provisions of the San Bernardino Municipal Code Section 2.65.050,
Sales to Public Agencies, since the request to purchase Department property was received from a
public agency and may be sold at far market value without the requirement of a competitive bid
process.
The attached Resolution establishes the fair market value of$57,000 for the property and $2,800
for the TCE, and sets a public hearing for June 17, 2013, which must be held prior to approving
the sale pursuant to Government Code Section 37420, et seq. A Resolution approving the Right
of Way Contract will be submitted for Mayor and Council review at that meeting.
Upon approval of a Right of Way Contract, the San Bernardino Municipal Water Department
Updated:4/30/2013 by Henry Empeno Jr.F Packet P .5$3
1111,
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and Caltrans will enter into an escrow agreement. Caltrans will pay all escrow and closing costs
for this transaction and thus the Department's net revenue from the sale and TCE will be
$59,800.
City Attorney Review:
Supporting Documents:
RCA-Plat (PDF)
RCA-Aerial (PDF)
Smothers Appraisal Summary (PDF) '
Water Dept Memo (PDF)
Resolution (PDF)
actCe 594 :
Updated:4/30/2013 by Henry Empeno Jr.F
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SUMMARY APPRAISAL REPORT
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CITY OF SAN BERNARDINO PROPERTY E
VACANT LAND, LOCATED ON Cl)
OLD CAJON BOULEVARD 0
DEVORE, CALIFORNIA 92407 Q.
ASSESSOR PARCEL NUMBERS: 0349-173-29; 0349-174-10 a
FILE NUMBER: 12028
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PREPARED FOR: PREPARED BY: E
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SAN BERNARDINO MUNICIPAL WATER DEPARTMENT SMOTHERS APPRAISAL =
MICHAEL NEVAREZ,ASSOCIATE ENGINEER 1881 COMMERCENTER FAST,SUITE 206 d
444 WEST RIALTO AVENUE,SUITE D SAN BERNARDINO,CALIFORNIA 92408-3443 v
SAN BERNARDINO,CA 92401 PHONE(909)890-9626 Y
CLIENT PURCHASE ORDER NO.:021595 EMAIL:JIM.SMOTHERS @YAHOO.COM Q
DATE OF INSPECTION:NOVEMBER 6,2012
DATE OF VALUE:NOVEMBER 6,2012
DATE OF REPORT:NOVEMBER 21,2012
Packet Pg. 597
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SMOTHERS APPRAISAL
James Smothers,MAI,ASA,SRA,SRIWA 1881 Commereenter East,Suite 206,
Aouraiser-Consultant-Commercial-Residential San Bernardino,CA 92408-3443
Phone:(909)890-9626
Email:jim.smothers @yahoo.com
November 21,2012
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Michael Nevarez,Associate Engineer o
San Bernardino Municipal Water Department
444 West Rialto Avenue, Suite D
San Bernardino, CA 92401 a
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RE: City of San Bernardino Property 0
Vacant land, located on Old Cajon Boulevard, ,
Devore,California 92407.
Assessor Parcel Numbers: 0349-173-29; 0349-174-10. o
Our File No.: 12028 2
Client PO No.:021595 t"
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Dear Mr.Nevarez:
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As requested, we have prepared an appraisal report of the above referenced property for the purpose N
of estimating the value of the larger parcel, the area to be acquired, value of the remainder, severance
damages, benefits and just compensation. The appraisal is according to the definitions of market value E
as stated in this report,Addenda C, and subject to the assumptions, limiting conditions and certification
contained within Addenda A.
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This Letter of Transmittal and Certification accompanies the appraisal report, further describing the
subject and containing the reasoning and pertinent data leading to the estimated value. This letter is Q
considered an integral part of the appraisal and the report is considered to be incomplete if viewed
separately from this letter. o
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This summary appraisal report is restricted for use by the client only and the appraisers. It is not to be
used by a third party without explicit arrangements with the appraisers. The appraiser's opinions and E
conclusions set forth in the report may not be understood properly without additional information in the
appraiser's workfile. Q
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Packet Pg. 598
Considering the investigations undertaken,the indicators of value in this report, and the relative reliability
of each,the following represent our final estimates, as of November 6, 2012:
(A)Value of the Whole Before Acquisition: $404,399
(B)Value of the Part Acquired as Part of the Whole: $24,299
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(C)Value of the Remainder as Part of the Whole(A - B): $380,100 0
(D)Value of the Remainder,Considering Damages: $350,662 c
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(E)Incurable Severance Damages(C- D): $29,438
(F)Curable Severance Damages: $0
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(G)Value of the Remainder,Considering Benefits: $350,662 0
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(H)Benefits: $0 a
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(I)Net Damages or Net Benefits(E+F - H): $29,438
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(J)Temporary Construction Easement: $2,800
(K)Total Just Compensation(B+I+J): $56,537 0
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(L)Rounded: $56,500
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I, the undersigned, do hereby confirm that this appraisal states fairly and correctly my opinions and N
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knowledge as to the matters therein stated. These opinions are the result of a continuing appraisal ,
process. If additional data is discovered which in my opinion materially affects the value of the property
or property interest expressed herein, I reserve the right to update my opinions by timely supplement. E
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James Smothers MAI,ASA, SRA, SR/WA °L
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Certified General Real Estate Appraiser L
State of California Certificate#AG002102 r
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CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
INTEROFFICE MEMORANDUM
TO: Ryan Sandoval,Real Property
FROM: Sydney Morrison, Senior Administrative Coordinator d
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SUBJECT: DECLARATION OF SURPLUS PROPERTY AND GRANT OF TEMPORARY o
CONSTRUCTION EASEMENT—DEPARTMENT PROPERTY LOCATED 06
NORTHWEST OF CAJON BOULEVARD AND DEVORE ROAD(EPN 2011-003) o
DATE: March 19,2013 v
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The Board of Water Commissioners, at their regular meeting held on Tuesday, March 19, 2013, a
unanimously voted to: o
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1. Declare approximately .24 acres of property located at the northwest of Cajon Boulevard and
Devore Road (APN 0349-174-10) as surplus; Recommend to the Mayor and Common Council
that the property be declared surplus; and fix the sales price at$57,000.00. o
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2. Approve the sale between City and the State of California Department of Transportation and N
authorize staff to submit the necessary information to the Mayor and Common Council to declare
the property surplus and sell the property to the State of California Department of Transportation °-
per Section 2.65.050 of the San Bernardino Municipal Code for the amount of$57,000.00.
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3. Approve the Grant of Temporary Construction Easement for the term of thirty-six (36) months
for the amount of$2,800.00 to the State of California Department of Transportation through the o
property known as APN 0349-173-29 as described in the easement documents and authorize staff
to submit the easement documents to the Mayor and Common Council for acceptance.
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This item was approved by the following vote to wit: o
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AYES: Commissioners Callicott, Coeke,Hendrix and Valles
NAYS: None
ABSENT: Commissioner Fernandez
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Should you have any questions,I can be reached at ext. 3499.
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Thank you, a
Jr'/
Sydney Morrison
Senior Administrative Coordinator
Packet Pg. 600
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND SALES
3 PRICE AND DECLARING THE INTENTION TO SELL REAL PROPERTY OWNED
4 BY THE CITY OF SAN BERNARDINO AND DESIGNATED FOR WATER
DEPARTMENT USE AND GRANTING A TEMPORARY CONSTRUCTION
5 EASEMENT GENERALLY LOCATED SOUTHWESTERLY OF CAJON c
BOULEVARD AND DEVORE ROAD, TO THE STATE OF CALIFORNIA ai
6 DEPARTMENT OF TRANSPORTATION RELATIVE TO THE I-15/1-215 DEVORE °
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NTERCHANGE PROJECT AND SETTING A PUBLIC HEARING TO CONSIDER o
SAID SALE. •0
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WHEREAS, the City of San Bernardino is the owner of a .24 acre parcel of real V
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property designated for Water Department use and generally located southwesterly of Cajon I-
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11 Boulevard and Devore Road, in the City of San Bernardino, known as Assessor's Parcel No. o
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12 0349-174-10 and more fully described as follows:
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All that certain real property situated in the County of San Bernardino, State of 0
14 California, described as follows: N
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Lot 5, Block 31, Map of Devore, in the County of San Bernardino, State of California,
16 as shown on a map recorded in Book 17, Pages 79 and 80 of Maps, in the office of the
County Recorder of said County. N
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Except therefrom any and all oil, gas, minerals, and other hydrocarbon substances
18 lying below a depth of 500 feet, as more particularly set forth and provided in that N
19 certain document recorded January 11, 1977 in Book 9090, Page 716 of Official
Records; and
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WHEREAS, the State of California Department of Transportation ("CALTRANS") a
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22 desires to acquire a portion of said property for the 1-15/1-215 Devore Interchange Project;
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and
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25 WHEREAS, CALTRANS also desires to acquire a Temporary Construction
26 Easement for thirty-six months over an adjacent 1,698 square foot portion of City owned
27 property, designated for Water Department use and generally located southwesterly of Cajon
28 Boulevard and Devore
Road in the City,known as Assessor's Parcel No. 0349-173-29; and
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I WHEREAS, the Mayor and Common Council believe it is in the best interest of the
2 City that said property be sold to CALTRANS and said Temporary Construction Easement
3 be granted to facilitate the I-15/I-215 Devore Interchange Project; and
4 WHEREAS, the Water Department hired Smothers Appraisal, a California Certified
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General Appraiser, to prepare an appraisal of the City properties described herein; and
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7 WHEREAS, Smothers Appraisal has prepared and submitted an appraisal report o
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8 determining the fair market value of said property, with severance damages, to be in the U
9 amount of FIFTY-THREE THOUSAND SEVEN HUNDRED THIRTY SEVEN DOLLARS o
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($53,737.00), and determined the fair market value of said Temporary Construction 0.
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Easement over said property to be in the amount of TWO THOUSAND EIGHT HUNDRED
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DOLLARS ($2,800.00); and c
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14 WHEREAS, CALTRANS presented a counter offer to the Water Department based co
15 on the value per square foot indicated in said appraisal report from Smothers Appraisal, in cr_
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the amount of FIFTY-SEVEN THOUSAND DOLLARS ($57,000.00), for the entire parcel, N
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and has accepted the determination of fair market value of said Temporary Construction
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Easement in the amount of TWO THOUSAND EIGHT HUNDRED DOLLARS ($2,800.00);
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21 WHEREAS, the San Bernardino Board of Water Commissioners has recommended
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22 that the Mayor and Council accept the counter offer of CALTRANS as the determination of
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fair market value of said properties; and
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26 WHEREAS, pursuant to Section 2.65.050 of the San Bernardino Municipal Code,
27 City owned property may be sold to another public agency without the need for competitive
28 bid, so long as the sales price is not less than the fair market value of said real property.
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Packetg 602
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1 THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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3 SECTION 1. The public interest and convenience require the sale of a portion of
4 City owned real property generally located southwesterly of Cajon Boulevard and Devore
5 Road, in the City of San Bernardino, more fully described above, and said property is hereby
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6 declared as surplus real property. 0
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SECTION 2. It is therefore the intention of the Mayor and Council to sell said real
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property to the State of California.
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SECTION 3. The Mayor and Council do hereby find and determine that the Fair a.
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11 Market Value and sales price of said real property is in the amount of FIFTY-SEVEN °
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12 THOUSAND DOLLARS ($57,000.00) and determine the Fair Market Value of the 3:
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13 Temporary Construction Easement to be in the amount of TWO THOUSAND EIGHT R
14 HUNDRED DOLLARS ($2,800.00).
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SECTION 4. The Mayor and Council do hereby set a public hearing to be held on
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17 June 17, 2013, at the hour of 4:00 p.m. or as soon thereafter as the matter can be heard, in the M
18 Council Chambers of City Hall, 300 North"D" Street, San Bernardino, California, relative to 2
19 the proposed sale.
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SECTION 5. Notice of the public hearing shall be published in The San Bernardino
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County Sun, a newspaper of general circulation, at least once prior to the public hearing and Ce
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shall be posted in at least 3 conspicuous places on the property at least (10) days prior to the E
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24 hearing.
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25 SECTION 6. Written and oral protest to such sale may be submitted and shall be
26 received at or prior to the public hearing. Written protests may also be submitted to the City
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1 Clerk's Office, City Hall, 300 N. "D" Street, San Bernardino, California, prior to the public
2 hearing.
3 SECTION 7. It is the intent of the Mayor and Council to consider and approve the
4 sale of said property described herein, at said public hearing.
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Packet Pg. 604
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
1 BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND SALES PRICE AND
2 DECLARING THE INTENTION TO SELL REAL PROPERTY OWNED BY THE CITY OF
SAN BERNARDINO AND DESIGNATED FOR WATER DEPARTMENT USE AND
3 GRANTING A TEMPORARY CONSTRUCTION EASEMENT GENERALLY LOCATED
SOUTHWESTERLY OF CAJON BOULEVARD AND DEVORE ROAD,TO THE STATE OF
4 CALIFORNIA DEPARTMENT OF TRANSPORTATION RELATIVE TO THE I-15/1-215
DEVORE INTERCHANGE PROJECT AND SETTING A PUBLIC HEARING TO
5 CONSIDER SAID SALE. c
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7 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor .0
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8 and Common Council of the City of San Bernardino at a meeting
9 thereof, held on the day of , 2013, by the following vote,to wit: o
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11 Council Members: AYES NAYS ABSTAIN ABSENT o
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12 MARQUEZ
13 JENKINS 0
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14 VALDIVIA N
15 SHORETT
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16 KELLEY
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17 MCCAMMACK
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Georgeann Hanna, City Clerk =
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21 The foregoing resolution is hereby approved this day of ,2013. o
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23 Patrick J. Morris,Mayor E
City of San Bernardino c
24 Approved as to form: a
25 JAMES F. PENMAN,
City Attorney
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By:
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