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HomeMy WebLinkAboutItem 6h. Purchase of Permanent Easement and Temporary Construction Easement for the Bob Jones Pathway Project Item 6h Department: Administration Cost Center: 1005 For Agenda of: 4/2/2024 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: PURCHASE OFFER FOR PERMANENT EASEMENT AND TEMPORARY CONSTRUCTION EASEMENT FROM COUNTY OF SAN LUIS OBISPO FOR BOB JONES PATHWAY PROJECT RECOMMENDATION Pursuant to an offer package received from the County of San Luis Obispo for its Bob Jones Pathway Project: 1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the sale of a Perpetual Easement and a Temporary Construction Easement for the County of San Luis Obispo’s Bob Jones Pathway Project that will encumber portions of property owned by the City of San Luis Obispo identified as Assessor’s Parcel Numbers 076 -061-075, 076-061-078, and 076-121-018 commonly known as the Filipponi Ecological Reserve”; and 2. Authorize the Mayor to sign the document entitled, “Perpetual Easement Agreement (And Temporary Construction Easement) Bob Jones Pathway”; and 3. Direct staff to receive and reserve the funds for future open space uses in accordance with General Plan policy. POLICY CONTEXT There are three areas of pertinent City policy applicable to evaluating the offer from the County of San Luis for the requested easements necessary for them to complete their Bob Jones Pathway Project. 1. Support for the County’s Bob Jones Pathway Project can be found in a suite of City policy documents: a) The Land Use Element of the General Plan (2014), with Goal # 10 (Environment), “Support statewide and regional efforts to create more sustainable communities, reduce greenhouse gas emissions, and develop transportation systems that support all modes of circulation.” Page 137 of 596 Item 6h b) The Circulation Element of the General Plan (2014) calls for achieving a transportation mode split objective of 20% of all trips being made by bicycle, which is echoed by the Climate Action Plan for Community Recovery (2020) that also places a strong emphasis on addressing emissions from regional trips. c) The Active Transportation Plan (2021) addresses the need for regional collaboration and specifically names the subject project with Goal 1.9 Collaborate with Regional Partners. “Cooperate with the County, State, San Luis Obispo Council of Governments, Cuesta College and Cal Poly in the planning and design of regional bicycle and pedestrian facilities (e.g. Bob Jones City-to-Sea Bike Trail, Chorro Valley Trail, Edna-Price Canyon Trail) to expand regional active transportation and recreation opportunities.” 2. The City of San Luis Obispo’s policies and procedures for real property acquisition and disposal are found at Section 475 of the Financial Management Manual, which further incorporates City Charter Article IX, Section 906 and City Council Resolution No. 10052 (2009 Series). Policy guidance pertinent to granting the proposed permanent and temporary construction easements to another public agency can be found in the sub-section regarding long-term use of real property intended for specific City-approved purposes by others (475-11): “The proposed use must further the Council’s intended goals or policies for the specific property, and shall not conflict or preclude any existing or planned City use” and “The proposed use should be consistent with the goals and objectives of the City’s General Plan for land use.” 3. Staff’s recommendation to receive the offered payment funds and reserve them for future open space uses is supported by policy fo und in the Conservation and Open Space Element of the General Plan (2006), Appendix C: Management of Open Space Lands, paragraph 13: “When compatible with the primary purpose of the open space, the City should use revenue from open space lands … to fund open space maintenance. Such revenues may also be used to acquire open space.” DISCUSSION Background The Bob Jones Pathway (sometimes also referred to as the Bob Jones Trail and the City- to-Sea Trail) was envisioned over 25 years ago as a pedestrian and bicycle facility to join the communities of San Luis Obispo and Avila Beach with a trail along San Luis Obispo Creek. Bob Jones was a passionate conservationist, co-founder of the pioneering environmental consulting firm, Jones & Stokes, and also served on the Board of Trustees of The Land Conservancy of San Luis Obispo County. At present, there are two existing sections of the Bob Jones Pathway, a 2.5-mile segment between Ontario Road and Avila Beach operated by the County of San Luis Obispo and a 1.1-mile segment operated by the City of San Luis Obispo between Prado Road and Los Osos Valley Road. Page 138 of 596 Item 6h The next new segment of the Bob Jones Pathway is being undertaken by the County of San Luis Obispo’s Parks and Recreation Department and Public Works Department and is a 4.4-mile segment stretching from the Octagon Barn Center located off of South Higuera Street and the existing Ontario Road staging area1. At this time, the County has completed and certified an Environmental Impact Report for the project an d has been awarded $18.25 million in funding through a State of California Active Transportation Program (ATP) grant facility. Project engineering and design is nearing completion, and the right-of-way acquisition process is now underway. Filipponi Ecological Reserve One such property that will require right-of-way acquisition is owned by the City of San Luis Obispo, commonly known as the “Filipponi Ecological Reserve”. The City acquired approximately 70 acres of land from the Filipponi family in April 2000 that had once been part of the larger Filipponi Ranch; however, the property was bifurcated by the construction of the US 101 freeway. The remaining, subject land on the east side of US 101 was farmed over the years, but in wet winters the land would f lood from time-to-time resulting in loss of crops and overall utility given that it is part of the historic floodplain along the East Fork of San Luis Obispo Creek. Following acquisition of the land, the City partnered with The Land Conservancy of San Luis Obispo County to implement a series of wetland and floodplain restoration projects. Due to the site characteristics and poor access from South Higuera, the City has historically only allowed for docent -led and educational outings at the property. It is important to note that the City acquired the Filipponi Ecological Reserve, in part, with grants funds from the California Department of Transportation’s “Environmental Enhancement and Mitigation Program” (EEMP). As a required condition of that grant facility, an “Agreement Declaring Restrictive Covenants” was recorded on title to the property to ensure that the property is only used in a manner consistent with the purposes of the grant. Staff from the City, County, and local office of Cal Trans have confe rred on the matter and agree that the small area of the easements along the frontage of the property, as further described herein, will not significantly impair or interfere with the conservation purposes of the property acquisition and the EEMP grant. County of San Luis Obispo Offer Package The County of San Luis Obispo’s Public Works Department has delivered to the City an offer package dated as of March 1, 2024 (Attachment B). The key highlights of the package are as follows: 1 Another future, connecting segment of the Bob Jones Pathway between Los Osos Valley Road and the Octagon Barn Center will be undertaken by the City of San Luis Obispo. This is considered a “Tier 1” project in the City’s Active Transportation Plan given the fundin g that has been acquired by the County for their project (page 147). Page 139 of 596 Item 6h Purchase Request The County is seeking to purchase from the City a perpetual easement for the pathway totalling 0.86 acres and a temporary construction easement for a three -year term totalling 3.32 acres. These easements would encumber three separate parcels owned by the City within the site. Both the permanent easement and the temporary construction easements are shown graphically at Exhibit B of the package. The permanent easement is legally described and depicted at Exhibit B-1. Valuation and Offer Price An appraisal was conducted in order to determine the fair market value of the easement interests proposed to be purchased, dated as of March 2, 2023. The valuation process is based on a highest and best use of the land for rural residential / agricultural production and relies on the comparable sales approach to value; the cost approach and income approach to valuation were not applicable because the City’s property does not have any improvements and does not produce income. The value for the perpetual easement was determined to be $34,830. The value for the temporary construction easement was determined to be $29,880. A severance damage payment of $3,015 was also included in the offer. Just compensation and the proposed purchase price is therefore a total of $67,700.00 (rounded). Overview of Easement Terms The full text of the proposed permanent and temporary construction easements is included with the offer package that is Attachment B to this Council Agenda Report. A brief overview of easement terms is below: a) The easement for the pathway is perpetual and non-exclusive. b) The purpose of the easement for the pathway is for the construction, reconstruction, maintenance, repair, and use (including emergency use) as a public multi-use pathway. c) The pathway would be open to the public from one -half hour prior to sunrise until one-half hour after sunset for pedestrian and bicycle use. d) The County would post signs and install fencing, as well as conduct patrol, enforcement, and all maintenance activities in accordance with County regulations and standards. e) The temporary construction easement is for a three-year term. f) The County would restore the temporary construction easement area to the condition that generally existing prior to construction. g) The County would implement and is fully responsible for the Habitat Mitigation and Monitoring Program required by the Environmental Impact Report for the Bob Jones Pathway Project. h) The easement document includes indemnification by the County, as well as standard terms and conditions for an easement instrument . Page 140 of 596 Item 6h Previous Council Action The City Council approved the purchase of th is property by adoption of Resolution No. 8987 (1999 Series) and the acquisition was completed on April 12, 2000. On June 19, 2021, Council approved a “Conceptual Restoration and Enhancement Plan” and s ince that time has also approved several restoration and mitigation projects conducted by others upon the property. Public Engagement An extensive public engagement process was conducted leading up to the adoption of the City’s Active Transportation Plan, wherein the Bob Jones Pathway was specifically discussed. The County of San Luis Obispo has also conducted numerous public meetings regarding the project over the course of the past 20 years. Any member of the public may comment on this item either in writing or in-person at the hearing. General Plan Conformity California Government Code Section 65402 requires that the Planning Commission make a finding that an acquisition or disposal of real property for public purposes, such as contemplated herein, is consistent with the General Plan . On December 9, 2020, the Planning Commission reviewed the draft Active Transportation Plan (subsequently adopted by City Council in February 2021), which identified the Bob Jones Pathway Project. The Planning Commission’s action included approval of a General Plan Conformity report that was included as Attachment 4 to the Planning Commission Agenda Report for that hearing. CONCURRENCE The Public Works Transportation Engineering Division has participated in the processing of this item and concurs with the recommendation. ENVIRONMENTAL REVIEW The County of San Luis Obispo is the lead agency for the environmental determination for its Bob Jones Pathway Project under the California Environmental Quality Act and is also responsible for all applicable regulatory agency permitting and requirements . The re- circulated Draft Environmental Impact Report was certified by the County Board of Supervisors on February 24, 2015 (SCH # 2010031121). FISCAL IMPACT Budgeted: No Budget Year: 2023-24 Funding Identified: N/A Page 141 of 596 Item 6h Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund State Federal Fees Other: Total N/A N/A N/A N/A The County of San Luis Obispo will make a lump sum payment in the amount of $67,700.00 to the City of San Luis Obispo as “good and valuable consideration” for the subject easements. Per Conservation and Open Space Element policy, a s discussed above, this revenue should be reserved for future open space maintenance or acquisition purposes. ALTERNATIVES Council may ask questions or request further clarification from staff, may request changes prior to approval, or may decide not to approve the recommendations contained in this Council Agenda Report. A decision not to approve, however, is not recommended by staff because this request is in furtherance of a long-standing community project of regional significance, is consistent with numerous City goals and policies, and may jeopardize the $18.25 million in grant funding that has been secured by the County of San Luis Obispo. ATTACHMENTS A - Draft Resolution authorizing the sale of a perpetual trail easement and a temporary construction easement for the County of San Luis Obispo’s Bob Jones Pathway Project B - Offer Package received from the County of San Luis Obispo Page 142 of 596 R ______ RESOLUTION NO. _____ (2024 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SALE OF A PERPETUAL EASEMENT AND A TEMPORARY CONSTRUCTION EASEMENT FOR THE COUNTY OF SAN LUIS OBISPO’S BOB JONES PATHWAY PROJECT THAT WILL ENCUMBER PORTIONS OF PROPERTY OWNED BY THE CITY OF SAN LUIS OBISPO IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 076-061-075, 076-061-078, AND 076- 121-018 COMMONLY KNOWN AS THE FILIPPONI ECOLOGICAL RESERVE WHEREAS, the City of San Luis Obispo has adopted policies and procedures for protection, management, and public use of open space lands and natural and cultural resources acquired by the City; and WHEREAS, the City of San Luis Obispo owns and manages open space areas totaling over 4,000 acres, including the approximately 70-acre Filipponi Ecological Reserve; and WHEREAS, the County of San Luis Obispo has received grant funding to construct and implement its Bob Jones Pathway Project, a multi-use bicycle and pedestrian facility, which will necessitate their purchase of both a 0.86-acre permanent easement for the pathway and a 3.32-acre temporary construction easement from the City of San Luis Obispo that will encumber portions of the Filipponi Ecological Reserve; and WHEREAS, the County of San Luis Obispo has identified the specific easement areas needed for the project, prepared an appraisal to determine the fair market value of the easements, set forth a satisfactory form of easement agreement, and has made an offer to pay the fair market value for the easements. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The recitals set forth above are hereby adopted as findings of the City in approving the real property transaction described herein. SECTION 2. Environmental Review. The County of San Luis Obispo is the lead agency for the environmental determination for its Bob Jones Pathway Project under the California Environmental Quality Act and is also responsible for all applicable regulatory agency permitting and requirements. The re-circulated Draft Environmental Impact Report was certified by the County Board of Supervisors on February 24, 2015 (SCH # 2010031121). Page 143 of 596 Resolution No. _____ (2024 Series) Page 2 R ______ SECTION 3. Bob Jones Pathway Project. The City Council hereby accepts the offer from the County of San Luis Obispo and authorizes the sale of the permanent and temporary easements in accordance with the offer package dated March 1, 2024, based on the following findings: a) The sale of the permanent and temporary construction easements is consistent with various City of San Luis Obispo policy documents including the Land Use and Circulation Elements of the General Plan (2014), as well as the adopted Climate Action Plan for Community Recovery (2020) and the Active Transportation Plan (2021). b) The sale of the permanent and temporary construction easements is consistent with the City of San Luis Obispo’s policies and procedures for real property acquisition and disposal found at Section 475 of the Financial Management Manual, which further incorporates City Charter Article IX, Section 906 and City Council Resolution No. 10052 (2009 Series). Specifically, granting the permanent and temporary construction easements to another public agency is consistent with the sub-section regarding long- term use of real property intended for specific City-approved purposes by others (475-11): “The proposed use must further the Council’s intended goals or policies for the specific property, and shall not conflict or preclude any existing or planned City use” and “The proposed use should be consistent with the goals and objectives of the City’s General Plan for land use.” c) On December 9, 2020, the Planning Commission reviewed the draft Active Transportation Plan (subsequently adopted by City Council in Februa ry 2021), which identified the Bob Jones Pathway Project. In accordance with California Government Code Section 65402, the Planning Commission’s action included approval of a General Plan Conformity report that was included as Attachment 4 to the Planning Commission Agenda Report for that hearing. d) The sale of the permanent and temporary construction easements is consistent with the conservation purposes of the property, as well as the grant funding that was provided by the California Department of Transportation’s “Environmental Enhancement and Mitigation Program” (EEMP) that was awarded at the time of the property acquisition (1999/2000) and the “Agreement Declaring Restrictive Covenants” that was recorded on title to ensure that the property is only used in a manner consistent with the purposes of the grant, because the small area of the easements that will encumber the frontage area of the property will not significantly impair or interfere with the conservation purposes of the property and the EEMP grant. Page 144 of 596 Resolution No. _____ (2024 Series) Page 3 R ______ e) The appraisal methodology and valuation, dated as of March 2, 2023, represents fair market value for the permanent and temporary construction easements and the offered sum of $67,700.00 is just compensation. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 24. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 145 of 596 Page 146 of 596 Page 147 of 596 Page 148 of 596 Page 149 of 596 Page 150 of 596 Page 151 of 596 Page 152 of 596 Page 153 of 596 Page 154 of 596 Page 155 of 596 Page 156 of 596 Page 157 of 596 Page 158 of 596 Page 159 of 596 Page 160 of 596 Page 161 of 596 Page 162 of 596 Page 163 of 596 Page 164 of 596 Page 165 of 596 Page 166 of 596 Page 167 of 596 Page 168 of 596 Page 169 of 596 Page 170 of 596 Page 171 of 596 Page 172 of 596 Page 173 of 596 Page 174 of 596 Page 175 of 596 Page 176 of 596 Page 177 of 596 Page 178 of 596 Page 179 of 596 Page 180 of 596 Page 181 of 596 Page 182 of 596 Page 183 of 596 Page 184 of 596 Page 185 of 596 Page 186 of 596 Page 187 of 596 Page 188 of 596 Page 189 of 596 Page 190 of 596 Page 191 of 596 Page 192 of 596 Page 193 of 596 Page 194 of 596 Page 195 of 596 Page 196 of 596 Page 197 of 596 Page 198 of 596 Page 199 of 596 Page 200 of 596 Page 201 of 596 Page 202 of 596 Page 203 of 596 Page 204 of 596 Page 205 of 596 Page 206 of 596