Leverages Real Estate Assets Photo courtesy of juror Yolo County Civil Grand Jury West Sacramento Port Commission

Findings 3 findings

F1

The West Sacramento Port Commission reported the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise was entered and recorded at their closed Board meeting in March 2022, but no record was found in the March 2022 minutes. The public was unaware that an ENA was being considered for this property and created a perception the Port Commission was not being transparent in their plans.

F2

In order for the West Sacramento Port Commission to proceed with the Purchase and Sale Agreement of the Seaway property as described in Resolution No. P22-4 of the Port Commission, adopted on October 5, 2022, the California Department of Housing and Community Development (HCD) must deem the property Exempt Surplus Property from the Surplus Land Act (SLA). The process described by law for the property to be exempt requires the Port Commission to apply to the HCD for approval and exemption. The Port Commission did not apply to HCD for the exemption, but simply declared in its Resolution that the property was exempt. Self-certification of exempt status is not sufficient as stated in the SLA. In the final stages of preparing this report, the Grand Jury learned that the Port Commission applied for an SLA exemption which was granted on March 27, 2024 [4].

F3

The Sacramento-Yolo Port Policies Manual of 1997 is out-of-date, does not include guidance on the sale of surplus land, and does not address strategies and policies for the sale and use of real estate properties. RECOMMENDATIONS The Grand Jury makes the following recommendations:

Recommendations 3

R1

The West Sacramento Port Commission should ensure future land negotiations are transparently reported and post the amended minutes of the March 2022 meeting to report the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise. This should be completed
R2

The West Sacramento Port Commission should post the SLA exemption from HCD, dated March 27, 2024, to a public site and linked to Resolution No. P22-4. This should be completed
R3

The West Sacramento Port Commission should develop a new and updated Port Policies Manual to reflect actual Port practices and strategies envisioned in the 2013 Business Plan, specifically addressing strategies and policies for the sale and use of its real estate properties. This should be completed by January 1, 2025. COMMENDATION The Grand Jury appreciates the California Department of Housing and Community Development (HCD) for explaining the Statewide Housing Plan and their role in holding jurisdictions accountable for meeting housing commitments and complying with State housing laws, including the Surplus Land Act (SLA). REQUIRED RESPONSES Pursuant to Penal Code Sections 933 and 933.05, the Grand Jury requests responses to its Finding and Recommendations as follows: ▪ West Sacramento Port Commission F-1, F-2, and F-3; and R-1, R-2, R-3 INVITED RESPONSES The Grand Jury also invites responses from the following individuals : ▪ West Sacramento City Manager/Port CEO F-1, F-2, and F-3; and R-1, R-2, R-3 ▪ Port General Manager F-1, F-2, and F-3; and R-1, R-2, R-3 ACRONYMS and

Commendations 1

CM1

The Grand Jury appreciates the California Department of Housing and Community Development (HCD) for explaining the Statewide Housing Plan and their role in holding jurisdictions accountable for meeting housing commitments and complying with State housing laws, including the Surplus Land Act (SLA).

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

Response to 2023-24 Grand Jury Report from the Port of West Sacramento

August 07, 2024 • 3 pages • 6 responses • Score: -2 (+1, 2, -3) View Details ▾

PDF

6 responses to findings and recommendations

F1

The West Sacramento Port Commission reported the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise was entered and recorded at their closed Board meeting in March 2022, but no record was found in the March 2022 minutes. The public was unaware that an ENA was being considered for this property and created a perception the Port Commission was not being transparent in their plans.

Response: Disagree Partially Score: 0

The West Sacramento Port Commission reported the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise was entered and recorded at their closed Board meeting in March 2022, but no record was found in the March 2022 minutes. The public was unaware that an ENA was being considered for this property and created a perception the Port Commission was not being transparent in their plans. Response: The Port disagrees partially with the finding. The Port agrees that the March approval of the ENA was not reported following closed session, but disagrees that it should have been reported. The Ralph...

R1

The West Sacramento Port Commission should ensure future land negotiations are transparently reported and post the amended minutes of the March 2022 meeting to report the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise. This should be completed

Response: Will Not Implement

Score: -1

The West Sacramento Port Commission reported the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise was entered and recorded at their closed Board meeting in March 2022, but no record was found in the March 2022 minutes. The public was unaware that an ENA was being considered for this property and created a perception the Port Commission was not being transparent in their plans. Response: The Port disagrees partially with the finding. The Port agrees that the March approval of the ENA was not reported following closed session, but disagrees that it should have been reported. The Ralph...

F2

In order for the West Sacramento Port Commission to proceed with the Purchase and Sale Agreement of the Seaway property as described in Resolution No. P22-4 of the Port Commission, adopted on October 5, 2022, the California Department of Housing and Community Development (HCD) must deem the property Exempt Surplus Property from the Surplus Land Act (SLA). The process described by law for the property to be exempt requires the Port Commission to apply to the HCD for approval and exemption. The Po...

Response: Disagree Score: -1

In order for the West Sacramento Port Commission to proceed with the Purchase and Sale Agreement of the Seaway property as described in Resolution No. P22-4 of the Port Commission, adopted on October 5, 2022, the California Department of Housing and Community Development (HCD) must deem the property Exempt Surplus Property from the Surplus land Act (SLA). The process described by law for the property to be exempt requires All statutory references are to the Government Code unless otherwise noted. 1110 West Capitol Avenue West Sacramento, CA 95691 (916) 617-4880 Port of West Sacramento at www.c...

R2

The West Sacramento Port Commission should post the SLA exemption from HCD, dated March 27, 2024, to a public site and linked to Resolution No. P22-4. This should be completed

Response: Implemented

Score: 0

The recommendation has been implemented. A copy of Resolution P22-4 and HCD's letter, dated March 27, 2024, confirming the Port properly identified the Property as exempt surplus land can be found on the Port of West Sacramento's webpage at: https://www.cityofwestsacramento.org/government/departments/city-manager-s-office/port-ofwest-sacramento R-3. The West Sacramento Port Commission should develop a new and updated Port Policies Manual to reflect actual Port practices and strategies envisioned in the 2013 Business 2545490.2 9361.001 Docusign Envelope ID: 85F054A5-3975-499D-B351-D1B0D3BA80...

F3

The Sacramento-Yolo Port Policies Manual of 1997 is out-of-date, does not include guidance on the sale of surplus land, and does not address strategies and policies for the sale and use of real estate properties. RECOMMENDATIONS The Grand Jury makes the following recommendations:

Response: Agree Score: +1

The Sacramento-Yolo Port Policies Manual of 1997 is out-of-date, does not include guidance on the sale of surplus land, and does not address strategies and policies for the sale and use of real estate properties. Response: The Port agrees with the finding. GRAND JURY RECOMMENDATIONS R-1. The West Sacramento Port Commission should ensure future land negotiations are transparently reported and post the amended minutes of the March 2022 meeting to report the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise. This should be completed by January 1, 2025. Response: The recommendation to ...

R3

The West Sacramento Port Commission should develop a new and updated Port Policies Manual to reflect actual Port practices and strategies envisioned in the 2013 Business Plan, specifically addressing strategies and policies for the sale and use of its real estate properties. This should be completed by January 1, 2025. COMMENDATION The Grand Jury appreciates the California Department of Housing and Community Development (HCD) for explaining the Statewide Housing Plan and their role in holding ju...

Response: Will Not Implement

Score: -1

The Sacramento-Yolo Port Policies Manual of 1997 is out-of-date, does not include guidance on the sale of surplus land, and does not address strategies and policies for the sale and use of real estate properties. Response: The Port agrees with the finding. GRAND JURY RECOMMENDATIONS R-1. The West Sacramento Port Commission should ensure future land negotiations are transparently reported and post the amended minutes of the March 2022 meeting to report the Exclusive Negotiating Agreement (ENA) with Fulcrum-Bluerise. This should be completed by January 1, 2025. Response: The recommendation to ...