REPORT TO THE CITY COUNCIL October 22, 2015 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division CRAIG L. HANSEN, Supervising Real Estate Agent Public Works Department, Real Estate Services Section BY: PETE CALDWELL, Senior Real Estate Agent Public Works Department, Real Estate Services Section SUBJECT ..Title RESOLUTION - Granting authority to the Public Works Director or designee to sign budgeted routine right-of-way acquisition agreements under $25,000 ..Body RECOMMENDATION Staff recommends the City Council adopt the attached Resolution granting authority to the Public Works Director or his designee to approve budgeted, routine right-of-way agreements with property owners where acquisition costs will not exceed $25,000. EXECUTIVE SUMMARY During the course of projects approved by the Council, the Public Works Department routinely works with property owners concerning nominal and non-complex right-of-way transactions. The funding for these right-of-way acquisitions have been previously approved and funded through previous Council actions, generally either the annual budget or through amendments to the Annual Appropriation Resolution. In order to improve overall City efficiencies and streamline the acquisition process for property owners, staff recommends the Council adopt the attached resolution which would increase the Director's level of authority from $10,000 to $25,000 for routine, budgeted right-of-way acquisitions. BACKGROUND On October 30, 2014, the Council adopted Resolution 2014-176 which gave the Public Works Director the authority to enter into budgeted right-of-way agreements of a routine nature where the cost did not exceed $10,000 to acquire the required portion of property that was previously approved and funded either through the adopted fiscal budget or by separate prior City Council approval. Since the implementation of Resolution 2014-176, fifteen properties have been acquired under this resolution and four additional properties are being negotiated. This flexibility has saved two to three months on the project schedules due to substantial savings in staff reports, review of those staff reports and scheduling of Council meeting dates. Staff is now able to focus on production and increased efficiency. During the summer of 2015, the Federal Highway Administration (FHWA) raised its limit of nominal and appraise/acquire transactions from $10,000 to $25,000. The California Department of Transportation (Caltrans), which administers FHWA guidance, recently approved the City of Fresno Public Works Real Estate Division as qualified for the new limits. With the successful staff implementation of Resolution 2014-176 and the increased authorization by Caltrans and FHWA, staff would recommend the Council increase the Director's delegated authority for these routine acquisitions. The routine transactions which would fall under this resolution are partial or full acquisition by easement or fee simple deed, provided the compensation to the property owner does not exceed $25,000. All agreements shall be reviewed and approved as to form by the City Attorney's Office prior to being presented to the Public Works Director for approval. ENVIRONMENTAL FINDINGS This legislative action is not subject to CEQA. Individual acquisitions entered pursuant to this Resolution may be subject to CEQA, and/or assessed as part of a larger project. LOCAL PREFERENCE N/A FISCAL IMPACT Granting authority to the Public Works Director to enter into and sign routine right-of-way agreements with property owners will not impact the General Fund. All projects requiring these types of agreements have either been funded through the annual Capital Improvement Budget or funded by a prior City Council Action. Attachment: Resolution