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Home My WebLink About10/07/1986 Item A1 Agreement with County of SLO to Provide Relocation Assistance for 148-182 Higuera'W gllii8iil XB'gi r,,A FrEP.,Frr MEETING OATE: ocr 7 '88 ITEM NUMBER: Assistant City AttorneVfl/1,1FROMAnne M. Russel I , Consideration of Agreenent with the County of San Luis Obispo to Provide Relocation Assistance Services Associated with 748-182 Higuera Street SUBJECT Adopt Resolution approving agreement and authorizing Mayor to execute the sane. CAO RECOMMENDATION BACKGROUND u*, In the Capital Facilities PIan, the Council has planned for the widening of Higuera Street north of the intersection with Madonna Road. The CFP projects property acquisition in the area for fiscal year 1986-87, and construction of the actual improvements in the following fiscal year. The City has already acquired the property in front of Budget Rent-A-Car, and has an option to acquire the Evans property at 148-182 Higuera Street. Assuning the Council exercises the option, the tenants currently residing in the buildings will need to be relocated before the buildings can be demolished and the street widened. The City has no right of way agent or other personnel qualified to perform relocation assistance services. The County, however, does have a right of way agent who is experienced in relocation" State law allows any public entity to utilize the services of another agency having an established organization for conducting a relocation assistance program. One of the goals of the 1986-87 Mayor's Work Program was to increase communication and cooperation between the City and other political bodies 1n the area. The agreement by county adninistration to allow the City to utilize the services of one of its employees for a specific project is yet another example of this comnunication and cooperation in action. Section I of the Agreement details the services that the County is agreeing to provide. Section II provides that the City shall be responsible for all costs, and shall make an initial deposit of $15,000 as the estirnated total project cost to the County. Additional deposits may be necessary. Legal assistance will be provided by the City Attorney's office. Section II also contains the most unusual provisions of the contract. Paragraphs ? and 8 on page 5 contain indemnity provisions that have been redrafted by County Counsel. The County is willing to allow the City to uti\7ze its personnel only if the City assumes full responsibility for any and all liability that may result out of the / \'W glli?LlilXB'€fu oo Fr EPGrtrrr performance of the contract, including the sole negligence of the County's entployee. The City's current insurance policy does not provide coverage for contractual indemnity such as that afforded by the proposed Agreement. Therefore, the city could be solely responsible to defend the county and its employee, and pay the full amount of any judgment which arises out of this contract out of the City Treasury. Staff will continue to seek an endorsement to the existing policy to cover this individual contract, which is the only affordable insurance coverage. Such coverage is considered unlikely To ninimize the City's exposure, the City Attorney's office will supervise the right of way agent, and the right of way agent will drive a City vehicle while on City business' The general liability and Errors and Omissions insurance policies cover the Clty Attorneyrs office. The City's automobile insurance will cover the County employee driving a City vehicle with permission. ALTERNATIVES: Assuming the CounclI desires to go ahead with the street widening project, the tenants will need to be relocated. The only other puUiic agency offering relocation assistance services in the area is cal Trans. cal Trans has stated that it wiII not be available to handle this project. The other alternative would be to hire an out of town private relocatlon assistance firn. The nearest one is in Ventura, 140 miles away. The City used this firn in connection with the Prenier Music relocation. Staff had several concerns over both the cost and the nethod in which the relocation was perforned' Being out of town means increased costs due to travel and unfamiliarity with the San Luis Obispo area and real estate narket' FISCAL IMPACT: There are sufficient funds available through the Asset Transfer Program. The estimated total cost of relocation assistance services is $rs,000 to $25,000. Depending on the number of tenants actually in possession when the City exercises the option, relocation expenses nay be in the $100,000 to $200'000 range. RECOMMENDATION: Adopt Resolution approvlng agreenent with the county for relocation assistance serVices. ATTACHMENTS: 1. Resolution and Agreenent 4-la , UNOKuNEL)ff;';"tqil- SEutsED ---tvtcc, I\ JATE iluu nnr ? '88/+%4 4+7 4 7. To operate a Clty vehicle at all tlmes that County persontrel are acting for ur orr hehalf of the City or otherwise performitrg rtntler ttris Agreement "CC; SECTION I I C I TY AGREI]S : 1. To cleposit with corrnty within 30 days of receipt of billing therefor, ap advance deposit of Fifteen Thousattd Dollars ($tS,000), wltich figur:e rt:presents thc eslinrate<l total project (:osts t1l County for' performing the relocatiotr assistance services referred to in this Agreement. If the deposit proves to be inadequate to fund the cost of saicl services, then City agrees to increase the amount of the deposit by executing a written supplt:metrt to this Agreement. 2. To pay Courrty, within 30 days of receipt of final billing.at completion of project, any renrainlng project costs dtte County for performing felocation asslstance service in excess of the original or any supplemental deposit. 3. To provide close Iiaison with County during the City's acquisition of real property for the purpose of closely coordinating the acguisition and relocation functions. City shall furnish all legal assistance ' required by County personnel in the perfornance of the relocation services renclered pursuant to this Agreement. 4. To notify County pronrptly, in writing, when City obtains control of the property, either by close of escrow, Order of Possession, Judgment in Condemnatlon, or consent of the property owners. 5. T1l furnish to County copies of appraisal reports. acquisition documents or any additional data requlred by County in order to provide relocation services. -4- <"-) K,T, 4-/-7 6. To review all clainrs for relocation assistance payments whlclr have been pror:essed and submi tted by Corrnty anrl prompt,l y (ti sburse f ttnds to clainranLs. City will advise County when eaclt such paynent has been made' 7. To defend, indemnify and save County, its officers, agerrts and employees harmless, to the extent of the County's self-insured retentiotr, but in no even ! gleg_t91 _t han Two Hundred Fifty Thousand Dollars, front at l{ and all claims, dentands, costs, expenses, judgnretlts, or liability for injuries t6 persons rlr rlamage to propelty cattst:d or resr.tlting itt any nantrer from Countyts performance under this Agreement, including, without linritation, injuries to persons or damage to property cattsed or resulting fron the sole negllgence of County, its officers, agents and enployees. 8. The County, its officers, agents and employees' sball give the City thd benefit of their best judgment and efforts in rendering the services set forth herein. The City agrees as an inducement to the undertaking of these services by the County that the County, its officers, agents ancl enployees, shall not be liable for any loss suffered by the City resulting from any error of judgment or any mlstake of Iaw or fact in connection with any natters to which this contract relates, except that nothing herein contained shall be construed to protect the County, its officers, agents and employees against any liability by reason of willful misfeasance, bad faith or gross negligence in the performance of County's duties or by reckless disregard of County's obligations or duties under this contract. 9. To prov ide a Clty vehicle for use by County personnel at all times that County personnel are acting for,-:Lor on behalf of the City or otherwise performing under thls Agreement. -5-e'#"l#ffi"a;4-/-,