HomeMy WebLinkAbout08-20-2019 Item 06 - Property and Easements for California and Taft Roundabout
Department Name: Public Works
Cost Center: 5010
For Agenda of: August 20, 2019
Placement: Consent
Estimated Time: N/A
FROM: Daryl Grigsby, Public Works Director
Prepared By: Jennifer Rice, Transportation Planner/Engineer
SUBJECT: ACQUISITION OF REAL PROPERTY AND EASEMENTS FOR
CALIFORNIA/TAFT ROUNDABOUT
RECOMMENDATION
1. Approve an agreement with Universal Management LLC in the amount of $61,425 and
authorize the Mayor to execute all documents in a form subject to approval of the City
Attorney to facilitate the acquisition of real property and easements associated with the
California/Taft Roundabout; and
2. Authorize payment from the City to 7-Eleven in a total amount of $5,125.25 to relocate
business signage.
DISCUSSION
Background
The intersection of California and Taft was identified in both the City’s General Plan Update and
Cal Poly Housing South Environmental Impact Reports as operating with excessive congestion
(level of service F) during peak hours. This intersection has also been identified as a high
collision rate intersection as part of the City’s Traffic Safety Program. Roundabout control has
been identified as the appropriate mitigation measure in each of these documents. Design of the
roundabout at this location is approximately 60% complete. As identified in the design,
additional right-of-way and temporary construction easements northeast and southeast of the
intersection are needed prior to construction.
Northeast Property Negotiations Concluded
The northeast property is owned by Universal Management, LLC and contains a 7-Eleven
convenience store and a laundromat. Both direct purchase and temporary construction easements
are necessary at this property location. An independent appraisal prepared by Schenberger,
Taylor, McCormick & Jecker, Inc. dated May 22, 2018, assessed the value of the property to be
acquired at $60,500. On August 21, 2018, Council authorized staff to enter formal negotiations
with the property owners. Universal Management, LLC has accepted an offer with the additional
request for compensation for signage relocation.
The original offer to Universal Management LLC for easements and deed was $60,500. A $925
escrow fee has been added to the offer amount. Universal Management, LLC has agreed and
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signed the Lessee Consent Acknowledgement (Attachment A), Fund Disbursement Request –
Property (Attachment B), Quitclaim Deed (Attachment C) and Buyers Settlement Statement
(Attachment D).
Additionally, during discussion with Universal Management, LLC, it was confirmed that the
relocation of existing 7-Eleven signage was not accounted for in either the appraisal or
construction documents. Larger corporations such as 7-Eleven often prefer to do their own sign
relocations so that they are in control of the timing of work and vendor. A separate relocation
claim totaling $5,125.25 is being requested by 7-Eleven, Inc. and staff is recommending
fulfilling this request by executing the Fund Disbursement Request – Sign (Attachment E).
The below exhibit identifies the area being purchased.
Southeast Corner Property Negotiations Continue
The southeast property is owned by Patel Trust and contains small retail stores and restaurants.
Acquisition of 2,182 square feet of permanent easement and 2,377 square feet of temporary
easements are needed for this property. Negotiations are ongoing with this property owner.
Previous Council or Advisory Body Action
On August 21, 2018, Council authorized staff to enter formal negotiations with the both property
owners – Universal Management LLC and Patel Trust.
Policy Context
Construction of the California and Taft Roundabout supports the City’s Traffic Safety Program
as well as the City’s Vision Zero Policy to eliminate traffic related fatalities and serious injuries
by 2030.
Public Engagement
No public engagement was done for the purposes of acquisition of real property and easements.
All communication has been directly with the property owner or their representatives.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
However, construction of this project was reviewed and found to satisfy the conditions of a
Categorical Exemption under CEQA Guidelines Sec. 15301 Class 1 – Existing Facilities. A
Notice of Exemption was filed to the County of San Luis Obispo on June 27, 2019.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2017-18
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $60,000 $ - $60,000
State $6,550 $ - $6,550
Federal
Fees
Other:
Total $66,550 $66,550
The total cost of this property acquisition will be $61,425 (the property acquisition cost is
$60,500 with an Escrow Fee of $925). Additionally, $5,125.25 will be paid to 7-Eleven, Inc. to
relocate their signage.
Note that negotiations continue for the southeast corner acquisition so the following analysis will
not represent the entire or final negotiation costs for this project.
The 2017-19 Financial Plan allocated $60,000 for property acquisition for this project. It was
anticipated that additional funding may be needed for acquisition, but at the time the budget was
established, detailed areas of right-a-way needs were unknown. For this action, there will be a
$6,550.25 shortfall. The State Highway Account (SHA) is allocated each year for City
transportation needs and there is currently a sufficient balance in that account to fund the
shortfall. Additionally, the SHA allocation will also be the proposed funding source for purchase
of the southeast property once the acquisition cost is determined.
ALTERNATIVES
The City Council may decide not to authorize the completion of the easement agreement. Staff
does not recommend this option as it will not further the project.
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Attachments:
a - Lessee Consent Acknowledgement
b - Fund Disbursement Request - Property
c - Quitclaim Deed
d - Buyers Settlement Statement
e - Fund Disbursement Request - Sign
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