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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 i FAX: (510) 9R-IIli31i \\�\�\1�IIIj Mark DeS:utluier,Vice At:n'or B •>\% \; c::,r-"v/.•i:,/ vron Caul1 Abell Colleen Cull OFFICE.OF THE CITY MANAGER ® eor Lloyd D.Mashore Telephone: (510) 671-:3150 Farrel A.Stewart.0tv Manager February 5, 1993ERE vED '3 R VFW 8 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