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Home My WebLink About2021-07-13 - AGENDA REPORTS - ADOPT ENCROACH POLICY (2)20 Agenda Item: 20 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: July 13, 2021 SUBJECT: ADOPTION OF A POLICY REGARDING ENCROACHMENT INTO CITY -OWNED PROPERTY DEPARTMENT: Community Development PRESENTER: Jason Crawford RECOMMENDED ACTION City Council approve the attached policy to take effect immediately, authorizing the City Manager or his/her designee to execute the sale of City -owned property under limited circumstances to address encroachment concerns. BACKGROUND On occasion, the City of Santa Clarita (City) discovers instances where private property owners are encroaching beyond their property lines and into adjacent City -owned property, including but not limited to, open space, park land, trails, and public right-of-way owned in fee. This poses a problem for both the encroaching party, who is in violation of the Unified Development Code (UDC), and the City, who is exposed to the liability associated with the misuse of the encroached upon property. Pursuant to UDC Section 17.01.060, the City is not authorized to issue permits for a property where a violation is present. As a result, property owners who are encroaching into a neighboring lot cannot make any future improvements until the encroachment is corrected. This can be frustrating for property owners who did not create the encroachment in the first place and do not have an easy means to remedy it. An example that recently surfaced entails a homeowner who is unable to construct a backyard pool because of an encroachment created by the original builder due to grading performed prior to the property being annexed into the City. To remedy this issue and other ones similar to it, the adoption of a new City policy is being recommended. The policy would grant the City Manager or his/her designee with the authority, under set circumstances, to execute the sale of encroached -upon property without further action by the City Council. Nothing in the policy precludes the City Manager from bringing any such sale to the City Council for consideration. Page 1 I Packet Pg. 217 20 The circumstances under which the City Manager or his/her designee may choose to enter into a sale include the following: 1. The encroachment occurred prior to the City's acquisition of the property being encroached upon; 2. The encroachment was created by a prior owner or the original developer; 3. The area being encroached upon, and requested for purchase, is no more than one-half acre in size; 4. The area being encroached upon only benefits the encroaching party and in no way benefits the general public; and The sale of land qualifies for a Categorical Exemption under Section 15312 of the California Environmental Quality Act as a Surplus Government Property Sale with no statewide, regional, or areawide concern. The City will evaluate each encroachment separately, at the request of the encroaching party, and set the sales price at the original cost paid for the land, prorated per square foot. In the alternative, and at its discretion, the City may set the price based on recently sold comparable properties or a professional appraisal. The transfer of land under the policy would require a lot line adjustment and associated grant deeds be reviewed and recorded. Any third -party expenses needed to prepare associated documents would be the responsibility of the encroaching party. However, in recognition of the fact that transfer of title may result in the reduction of the City's liability exposure, the City Manager or his/her designee may waive lot line adjustment fees. ALTERNATIVE ACTION Other action as determined by the City Council_ FISCAL IMPACT As stated in the attached policy, any revenues generated by the sale of encroached upon property shall be returned to whichever fund bore the expense when the City originally acquired the property. If not applicable, the revenues shall be deposited into the General Fund. ATTACHMENTS Draft Policy No. II-44 City Manager Authority to Execute the Sale of Encroached Upon Properties Page 2 Packet Pg. 218 20.a City of Santa Clarita r OLy 09!. O� �6 DECEMeE�w Number II-44 POLICY/PROCEDURE SUBJECT: CITY MANAGER AUTHORITY TO EXECUTE THE SALE OF ENCROACHED -UPON PROPERTIES ORIGINAL ISSUE EFFECTIVE: 07/13/2021 1 CATEGORY: ADMINISTRATION RESPONSIBLE DEPARTMENT: CITY MANAGER'S OFFICE I. PURPOSE To provide the City Manager or his/her designee with authority to address encroachments into City -owned property. Encroachment areas covered under this policy do not serve a public benefit and are less than one-half (1/2) acre in size; therefore, there is not a need for formal City Council action. This policy serves current property owners who are encroaching into City -owned property, at no fault of their own, as the result of existing geographic features or constructed elements, such as retaining walls and fencing. This policy further recognizes the fact that transfer of title in such situations can reduce the City's liability exposure. To this end, the policy defines the circumstances under which the City Manager or his/her designee is authorized to execute the sale of land to an encroaching party without further City Council action. II. BACKGROUND On occasion, the City discovers instances where private property owners are encroaching beyond their property lines and into adjacent City -owned property. Encroachments can consist of a number of property improvements, including yard expansions, walls, fencing, etc. In some cases, the encroachments were created during original construction, which in turn negatively affects the current property owners who, at no fault of their own, are in violation of the City's Unified Development Code (UDC). This violation, pursuant to UDC Section 17.01.060, precludes them from obtaining permits from the City until the encroachment is corrected. III. SALE OF ENCROACHED -UPON PROPERTIES A. Scope: By the request of an encroaching party, the City Manager or his/her designee may approve the sale of City -owned property that is being encroached upon under the following conditions: 1. The encroachment occurred prior to the City's acquisition of the property being encroached upon; Page 1 of 2 Packet Pg. 219 1 2. The encroachment was created by a prior owner, or the original developer; 20.a 3. The area being encroached upon, and requested for purchase, is no more than one-half (1/2) acre in size; 4. The area being encroached upon only benefits the encroaching party and in no way benefits the general public; and, 5. The sale of land qualifies for a Categorical Exemption under Section 15312 of the California Environmental Quality Act as a Surplus Government Property Sale with no statewide, regional, or areawide concern. B. Sales Price and Proceeds: The City shall set the sales price of the encroached upon property. The sales price may be set at the original cost paid by the City for the land, prorated per square foot. Iii the alternative, and at its discretion, the City may set the price based on recently sold comparable properties or a professional appraisal. Any proceeds collected from these types of transactions shall be returned to whichever fund bore the expense when the City originally acquired the property. If not applicable, the proceeds shall be deposited into the General Fund. C. Transfer Process: The transfer of land under this policy requires a lot line adjustment and associated grant deeds be reviewed and recorded. Any third -party expenses needed to prepare associated documents shall be the responsibility of the encroaching party. However, in recognition of certain instances where transfer of the title results in a reduction of the City's liability exposure, the City Manager or his/her designee has the authority to waive lot line adjustment fees. D. Compliance with State Law: The sale of property must comply with the Surplus Land Act (Government Code Section 54220 et seq). E. Tvves of Citv Property subiect to the Policy_ : The following is a non-exclusive list of types of properties subject to this policy: 1. Open space, park land, trails; and 2. Public right-of-way, owned in fee. IV. EXCEPTIONS There are no exceptions to this policy. Despite having the authority to complete the transaction administratively, if for any reason the City Manager decides to bring a potential sale covered under this policy to the City Council for consideration, there is nothing in the policy that precludes the City Manager's Office from doing so. V. AUTHORITY By the authority of the City Council. Mayor Page 2 of 2 I Packet Pg. 220 1