ITEM 6-J

City Council Meeting 11/12/91

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Authorize the City Manager to
          Negotiate and Execute an Amendment to the City/State
          Beach  Operating  Agreement  to  Delete  Three   Vacant
          Surplus Parcels

Introduction

The  State  Department  of  Recreation  and  Parks  was   granted
authority  pursuant  to  the  Surplus  Property Act (Chapter 620,
1989) to dispose  of  three  small  vacant  parcels,  as  surplus
property, along Pacific Coast Highway.  The 1981 City/State Santa
Monica State Beach  Operating  Agreement  requires  amendment  to
delete these three parcels so that the parcels are no longer part
of the City's operational responsibility of the State Beach.

Background:

The State Department of Recreation and Parks  notified  the  City
during  1989  of  their intent to sell three vacant Pacific Coast
Highway parcels as surplus land because they are not  needed  for
public  recreational  use  purposes.    Although the parcels were
acquired originally for parking purposes, the lots were not large
enough to develop as public parking lots.

The parcels' location and size are as follows:

          1. Between 514 & 522 Palisades Beach Rd.  -  8,407  sq.
          ft.

          2. Between 607 & 625 Palisades Beach Rd.  -  9,803  sq.
          ft.

          3. Between 966 & 972 Palisades Beach Rd.  -  5,486  sq.
          ft.

On  April  10,  1990,  the  City  Council  considered   a   staff
recommendation to proceed with execution of an agreement with the
State to remove the parcels from the City's operating  agreement.
The  Council  did  not  take action at that meeting and asked for
further information about the State's authority  to  surplus  the
property.   The  City  Attorney's  Office  subsequently issued an
opinion  on  the  matter  which  indicated  that  there  were  no
clear-cut  reasons  that  the City could argue in withholding its
approval of  the  surplussing  as  there  would  be  no  loss  of
concession  income to the City.  Further, there did not appear to
be  grounds  for  arguing  that  the  City  should  receive   any
consideration  for  the  parcels  because they had been purchased
with State funds.

While there was a discussion at the  1990  meeting  of  potential
public uses for the sites which Staff had already reviewed, Staff
subsequently re-visited the parking potential of the sites.  Only
one  lot  appears  large enough to accommodate public parking and
that  would  only  be  for  20  -  25  spaces.   The  operational
efficiency  of  such  a  lot would be questionable.  In addition,
staff anticipates significant neighbor opposition to use of  this
site for parking purposes.

As there have been no significant  additional  findings  on  this
matter, Staff is re-submitting its recommendation to proceed with
negotiating and executing an amendment to the operating agreement
to delete the three parcels.

Budgetary Impact

None

Conclusion

Staff recommends that the City Council authorize the City Manager
to  negotiate  and  execute  an  amendment to the 1981 City/State
Santa Monica  State  Beach  Operating  Agreement  to  delete  the
aforementioned three vacant parcels along Pacific Coast Highway.

Prepared By:  Lynne C. Barrette, Assistant City Manager