HomeMy WebLinkAboutMINUTES - 02231993 - 1.121 CITY OF CONCORD CITY COUNCIL '
1950 Parkside Drive,\1S/01
Concord.California 94519-2578 \�1,�.';�./�/i Nancy C:orc,\•favor
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Colleen Cull
OFFICE.OF THE CITY MANAGER ® eor Lloyd D.Mashore
Telephone: (510) 671-:3150 Farrel A.Stewart.0tv Manager
February 5, 1993ERE
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Board of Supervisors
Contra Costa County CLERK BOARD OF SUPERVISORS
651 Pine Street CONTRA COSTA CO.
Martinez, CA 94553
Mr. Gus Kramer
Real Property Agent
Public Works Department
Contra Costa County
255 Glacier Drive
Martinez, CA 94553
Re: County Court - Concord Civic Center
Dear Board Members and Mr. Kramer:
We are writing to address the outstanding question of the County's continued occupancy of part
of our Concord Civic Center for the Mt Diablo Municipal Court. As of December 31, 1991,
the County's twenty-five year lease on the property expired. The County neither exercised the
option to purchase the property nor provided a clear statement of its intentions for the future.
As set forth in our City Attorney's October 9, 1992 letter to Mr. Kramer, we concluded the
County had not exercised the option and offered the County an opportunity to respond by
providing any information which might support a conclusion to the contrary. Since that time,
we have had other discussions, including a meeting in our offices on December 21, 1992. At
no time has the County provided us with information that would support the conclusion the
County had exercised the option.
With time moving forward and our continuing need to plan for the future, we felt we had to
proceed to a more formal analysis of our legal position in this matter. We. completed the
analysis, and it has confirmed our initial conclusion that the County did not exercise the option
and now occupies the Municipal Court building as a month-to-month "holdover" tenant of the
City.
Under the terms of the lease agreement, the County was required to give notice to the City of
its election to purchase the leased premises "within one month of the expiration of the lease
term," which was December 31, 1991. The lease also mandated that such notice be in writing,
addressed to our City Clerk.
Board of Supervisors
Mr. Gus Kramer
Re: . County Court - Concord Civic Center
February 5, 1993
Page 2
In mid-November 1991, our Assistant City Manager received a call from the Deputy County
Administrator and was advised the County.Administration was recommending the exercise of
the option and would soon present the question to the Board of Supervisors for a decision. This
call, coming before Board approval was given, did not provide proper notice and commitment
from the County to exercise the option.
No correspondence from the County was provided to us until we received Mr. Kramer's March
4, 1992 letter. Mr. Kramer's letter advised us the "Board of Supervisors passed the necessary
Board Order on November 19,-1991, and I have a check ready to deposit" with a title company.
From our review of the Board's November 19, 1991 action, it appears the Board had authorized
the Public Works Director to notify the City of Concord that the County would exercise its
option to purchase. However, no such notification was given until March, over three months
later. This notification was untimely, not addressed as required by the terms of the Agreement,
and was not binding.
Having concluded the option was not exercised, we have looked beyond this issue to evaluate
the possibility of selling the County Court property to the County. Frankly, it appears it would
have been extremely impractical, if not impossible, to complete a sale pursuant to the terms
expressed in the lease agreement. Further, it would be fiscally inappropriate for the City to sell
the property to the County at the exceedingly low price of $20,000.
Though it is theoretically possible to continue the current arrangement whereby the County uses
the Municipal Court facilities pursuant to a month-to-month tenancy, we would much prefer to
negotiate a new arrangement which would allow both Concord and Contra Costa County to plan
for the future. I would like to set up a meeting in the very near term to address this matter.
Pending those discussions, which I would like to begin immediately with the intent of reaching
a new agreement by the end of the fiscal year, I would like to propose the following
understanding between us:
1. That the holdover tenancy relationship of the County's occupation for the
past 13 months be acknowledged and continue for the remainder of the
1992-93 fiscal year. Although the City is no doubt entitled to fair market
rental for 1992 and beyond, I would support an agreement which would
allow the County to pay the original 1966 lease rental amount of
$1,800/month, plus the County's share of common area maintenance
expenses, while we try, in good faith, to work out a long term agreement.
2. That within the next thirty (30) days, County staff should be directed to
work with City staff to develop a mutually acceptable lease arrangement
for the future, effective July 1, 1993.
Board of Supervisors
Mr. Gus Kramer
Re: County Court - Concord Civic Center
February 5, 1993
Page 3
Please contact me at your earliest convenience to pursue this matter. Your prompt attention will
be.appreciated.
Sincerel yours,
F.A. S ART
Ci anager
FAS/MDM:mam
cc: City Council
City Attorney
Sharon Anderson