County Of Sonoma Agenda Item Summary Report Department: General Services / Sheriff-Coroner Contact: Trisha Griffus Phone: (707) 565-2463 Board Date: 1/12/10 4/5 Vote Required Deadline for Board Action: AGENDA SHORT TITLE: Acquisition of Single Family Residence in Bodega Bay for Sheriff K-3 Deputy Occupancy. REQUESTED BOARD ACTION: Adopt a resolution authorizing the Director of General Services, or his Deputy, to execute a Property Purchase Agreement with Herman James William Diekmann for real property located at 1814 Highway One in Bodega Bay, being further described as Assessor's Parcel Number 100-200-047, consisting of a threebedroom, two-bathroom, newly constructed single family residence on approximately 6,000 square feet of land. CURRENT FISCAL YEAR FINANCIAL IMPACT EXPENDITURES: Estimated Cost $545,000 Amount Budgeted $545,000 Other Available Appropriations $0 (Explain Below) Additional Requested $0 ADDITIONAL FUNDS REQUIRING BOARD APPROVAL: Contingencies $0 (Fund Name:) Unanticipated Revenue $0 (Source:) Other Transfers $ 0 Additional Funds Requested $0 Explanation (if required): Estimated cost includes purchase price, inspections, closing costs, and concrete work. Prior Board Action: 12-8-2009 Resolution declaring intent to enter into the subject purchase agreement and resolution to authorize a budgetary adjustment. 12-2-2003 Resolution authorizing the Chairperson of the Board of Supervisors to execute a Property Purchase Agreement for 22006 Davis Way, Jenner, California (Timber Cove). 10-21-03 Resolution declaring intent to execute a Property Purchase Agreement for 22006 Davis Way, Jenner, California (Timber Cove). Alternatives Results of Non-Approval: The K-3 Deputy will continue to receive a housing allowance of $1,050 per month and will be required to obtain his or her own housing at the deputy s greater expense. The Sheriff may have greater difficulty obtaining qualified candidates for the Bodega Bay residency position, potentially resulting in longer response times in the coastal area.
General: For the past 35 years, the Sheriff's Office has had resident deputies serving in the coastal areas. There are currently three resident deputies who serve the coastal areas of Bodega Bay, Timber Cove, and Sea Ranch. Housing is provided to the Sea Ranch and Timber Cove deputies. The resident deputy in Bodega Bay is required to rent or buy housing in the area for the term of his or her assignment (an average of 4-7 years). A $1,050 housing allowance is given to those deputies who are not provided housing. Proposed Acquisition: The purpose of the proposed acquisition is to provide a single family residence for the Sheriff's deputy who serves the Southern Coast Zone which includes Bodega Bay, Bodega, Bloomfield, and Valley Ford ("K-3"). Resident deputies are required to live in their patrol zones, normally work alone, and have special equipment and training needed to patrol remote areas of the County. These deputies are certified emergency medical technicians and they are also trained in cliff rescue, ocean rescue, and in some cases, alternative helicopter observation. Proposal: Staff proposes to purchase a residence in Bodega Bay for the K-3 Deputy Sheriff. Recruiting for the resident deputy positions has been an ongoing challenge for the Sheriff s Office in large part due to the high cost and low availability of suitable housing in the coastal areas. The K-1 and K-2 deputies currently live in County-owned housing. By purchasing a suitable residence for the K-3 deputy, the Sheriff s Office hopes to: 1) establish stable, predictable expenditures for long-term resident deputy housing, 2) improve the Sheriff s Office s ability to recruit and retain the K-3 resident deputy position, 3) maintain the level of law enforcement services that the K-3 coastal community needs and has grown to expect, and 4) establish consistency among all coastal resident deputy posts. The downturn in the local real estate market presents an opportunity for the County to acquire a residential property for the K-3 position at a reduced price. The current median price in the Bodega Bay area is $742,000. Alternatives: A number of alternative options to purchasing resident deputy housing were considered; however, these would require additional deputy allocations, or result in significant service reductions, or provide only short-term or impractical solutions. Alternatives are below and in the attached table; a full report is on file with the Clerk of the Board. Eliminate K-3 Zone and Use Existing Staff to Cover Patrol. This option eliminates the K-3 zone and shifts patrol coverage of this zone to current staff, which would affect the coastal and neighbouring patrol zones. A re-drawing of the patrol zone map would need to be considered to account for expanded coverage areas for the same number of deputies. Expanded coverage areas would mean significantly greater response times and a reduction in service since the community would no longer have a local deputy familiar with its residents or unique characteristics and needs. Staff K-3 Zone Day Patrol Coverage out of the Guerneville Sheriff s Sub-station. Under this alternative, the K-3 position would be eliminated and daily coastal patrol responsibilities would be assigned to a deputy from the Guerneville Sheriff s Sub-station. This alternative would require two additional deputy positions. Patrol coverage would be from 8:00 a.m. to 7:00 p.m., i.e., significantly reducing service to the Bodega Bay community during night hours. Response time from the sub-station would be at least 35 minutes and the deputy on duty may not be familiar with the zone and community. Staff K-3 Zone 24-Hour Patrol Coverage out of the Guerneville Sheriff s Sub-station. Under this option, the K-3 position would be eliminated and coastal patrol responsibilities would be assigned to a deputy or deputies at the Guerneville Sub-station for 24-hour coastal coverage. 24-hour coverage requires six deputy positions, greatly increasing the cost of service. For officer safety reasons, two deputies would need to respond to evening calls. Enter into a Long-term Lease for K-3 Housing. The County could enter into a long-term lease for K-3 housing with a private owner. Unfortunately, the market for long-term rental housing in the Bodega Bay area is limited, despite an increase in general availability during the current economic downturn. Although a lease agreement would be binding, there is a risk that the property owner would not comply with the contract, and as such, a lease agreement is considered only a short-term solution. Increase Housing Allowance. Increasing the resident deputy housing allowance is an alternative, although an increase does not compensate for the scarcity of suitable rentals in the Bodega Bay market. The current allowance does not appear to compensate resident deputies for housing affordability and stability impacts in the coastal area. Arguably, the allowance could be increased to a level that would alleviate these concerns. That level could be as high as the current average compensation for monthly rent or higher and would be expected to increase from year to year. The current monthly average of a three-bedroom rental is estimated at $2,000 per month, which is equivalent to a $950 per month increase in the housing allowance. Page 2 of 4
Build a K-3 Residence on County-owned Land. One alternative would be to build a K-3 residence for the resident deputy on existing County property. The Real Estate Manager has looked at the County-owned Bodega Bay Tidelands area to determine whether there is a suitable site upon which a resident deputy house could be built. There does not appear to be any suitable County-owned land because most of the land is subject to flooding; or does not meet lot size minimum requirements, moreover road access is blocked from the public right-of-way by private property. A small site near Spud Point appears to have potential; however, the cost and time to secure entitlements such as environmental, and coastal commission approvals, would be substantial. Property Description: The property proposed for acquisition is a newly constructed, 3-bedroom, 2-bathroom single family residence situated on approximately 6,000 square feet of land, located at 8214 Highway One in Bodega Bay ( Property ). The home is in new, and it provides easy ingress and egress to Highway One and Bay Flat Road for emergency response. Proposed Purchase Agreement Terms: Staff has negotiated a purchase agreement, the proposed terms of which are described below. Purchase Price: $499,000, subject to appraisal confirming the market value of the Property is no less than the purchase price. Deposit: Closing Conditions: Closing Date: $5,000 paid in two installments of $2,500 each. The second deposit is paid upon satisfaction of the closing conditions (see below). County's obligation to close is subject to County approval of title, plans, permits, appraised value, and the overall condition of the property. Close of escrow will occur as soon as practicable after the above conditions are satisfied and a final certificate of occupancy has been issued for the Property. Closing Costs: Seller pays all assessments and bonds, and any transfer taxes. Escrow, recording, and other fees and costs with exception of the transfer fees to be paid by County. County pays for the policy of title insurance. General Plan and C.E.Q.A: Since the Property is located in the unincorporated area of Sonoma County, there is no government code requirement to obtain a general plan consistency finding. Nevertheless, the proposed use of the property is consistent with the Sonoma County General Plan. Purchase of the Property for use as a single family residence is exempt from C.E.Q.A. review. Funding: In June of 2003, and again in January 2009, the Sheriff s Office notified the Board of its intent to explore alternatives for providing resident deputy housing in the Bodega Bay area through the use of asset forfeiture funds. The Sheriff since has been setting aside asset forfeiture funds in the one asset forfeiture fund that can be used for this purpose, Asset Forfeiture Fund 040881. An administrative transfer from the Asset Forfeiture Fund was approved by your Board December 8, 2009. Funding in the amount of $545,000 is now available in the 2009-10 Capital Project Budget (Index 150821-4634). This will cover the purchase price, inspection costs, appliances, and minor concrete work needed to make the Property suitable for the K-3 residential deputy. After purchase of the Property, approximately $84,000 will remain for other Sheriff s Office needs. Also, the Resident Deputy housing allowance of $1,050 is discontinued once the Deputy takes residence in County provided housing. In 2005, the average purchase price per square foot for a three-bedroom home in Bodega Bay with approximately 1,300 square feet was $578 per square foot. The current average purchase price per square foot for a similar home is approximately $367, a 37% decrease since 2005. At a purchase price of $333 per square foot, the proposed Property is below current average market value. The real estate market is showing limited signs of improvement, and considering that the purchase price is below the average price per square foot, acquisition of the Property is well supported.
Page 3 of 4 Operational Costs: The housing allowance for the Bodega Bay deputy will be eliminated upon occupancy of the new residence. The maintenance costs of the proposed property are estimated to total approximately $10,400 per year, which is offset by an annual maintenance contribution made by the resident deputy of $4,401, resulting in a net annual cost to the County of approximately $6,000. A resident deputy without County-provided housing receives $12,600 per year in housing allowance. There is an estimated reduction to general fund operations expenses by approximately $6,600 per fiscal year if the County buys the Property. Recommendation: Staff recommends that the Board of Supervisors adopt a resolution authorizing the Director of General Services, or his Deputy, to execute a Property Purchase Agreement with Herman James William Diekmann for real property known as 1814 Highway One, Bodega Bay. Page 4 of 4 Attachments: Resolutions, Project Alternatives and Cost table. On File With Clerk: Proposed Purchase Agreement, report entitled Analysis of Resident Deputy Housing Options, dated August 12, 2009.
Resolution No. Date: 1/12/10 Resolution Of The Board Of Supervisors Of The County Of Sonoma, State Of California, Authorizing the Director of General Services, or his Deputy, to Execute A Property Purchase Agreement With Herman James Diekmann, a Married Man As His Sole and Separate property, For Real Property Commonly Known As 1814 Highway One, Bodega Bay, California, Located In The Unincorporated Area Of Sonoma County, Being Further Described As Assessor's Parcel Number 100-200- 047, Consisting Of A Single Family House On Approximately 6,000 Square Feet Of Land. Whereas, the County of Sonoma, a political subdivision of the State of California ("County"), wishes to purchase that certain real property commonly known as 1814 Highway One, Bodega Bay, California, located in the unincorporated area of Sonoma County, being further described as Assessor s Parcel Number 100-200-047 ("Property"), from Hermann James William Diekmann ("Seller") for the purpose of providing a single family residence for a resident deputy and other future, potential uses; and Whereas, County and Seller have reached tentative agreement as to the terms and conditions for sale of the Property to County and have reflected same in a Property Purchase Agreement; and Whereas, public notice of the County s intention to enter into a Property Purchase Agreement has been published once a week for three (3) successive weeks in accordance with Government Code Section 25350 and 6063. Now, Therefore, Be It Resolved, that the Board of Supervisors ("Board") of the County of Sonoma does hereby find, determine, declare, and order as follows: 1. Verification of Recitals. Each of the foregoing recitals is true and correct. 2. Authorization to Enter into a Property Purchase Agreement. The Board hereby authorizes the General Services Director, or his Deputy, to execute a Property Purchase Agreement and authorize the purchase of the Property from Seller for a gross purchase price of Four Hundred Ninety-Nine Thousand Dollars ($499,000), said purchase contingent upon satisfaction of all the terms and conditions set forth within the Property Purchase Agreement as determined by the Real Estate Manager and County Counsel.
Resolution # Date: 11/3/2009 Page 2 3. Authority to Modify Property Purchase Agreement and Other Documents. This Board hereby authorizes the Director of the Department of General Services, or his Deputy, to approve changes in the Property Purchase Agreement, and other documents, as reasonably requested by the Real Estate Manager and approved in writing by the County Counsel, which are not inconsistent with the essential terms outlined in this Resolution. 4. Authorization to Take Other Action and Execute Other Documents. This Board hereby authorizes the Director of the Department of General Services, or his Deputy, to take such other actions and execute such other documents as reasonably needed to effect the transaction described herein. Supervisors: Brown: Kerns: Zane: Carrillo: Kelley: Ayes: Noes: Absent: Abstain: So Ordered.