REPORT TO THE CITY COUNCIL December 14, 2017 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division SUBJECT ..Title ***RESOLUTION - 42nd amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 to appropriate $220,000 in developer contributions for the acquisition of right-of-way for public street and public utility easements for Conditional Use Permit No. C-17-057 on the west side of Riverside Drive south of Palo Alto Avenue (Council District 2) (Requires 5 affirmative votes) (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends that the City Council adopts the 42nd Amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 to appropriate $220,000 in developer contributions for the acquisition of right-of-way for public street and public utility easements from five parcels on Herndon Avenue between Riverside Drive and Hayes Avenue for Conditional Use Permit No. C-17-057. EXECUTIVE SUMMARY The developers of El Paseo Shopping Center, John Allen Company, LLC, have requested City assistance to acquire necessary right-of-way from five parcels for public street easements and public utility easements. This right-of-way is necessary for the construction of the improvements which are required for the project, as set forth in the Development Agreement which the Council previously approved for the El Paseo project. John Allen Company deposited $220,000 to fund City staff costs as well as the value of the easements to be acquired. Staff recommends adoption of the resolution to allow staff to proceed with the right-of-way acquisition and enable the infrastructure to be constructed as soon as possible. BACKGROUND John Allen Company has requested City assistance to acquire right-of-way from five properties along Herndon Avenue between Riverside Drive and Hayes Avenue. The developer is proceeding with the next phase of the El Paseo project, generally located to the south of the previously approved Phase 1 development between Herndon Avenue and Palo Alto Avenue. The Environmental Impact Report and Development Agreement for this project identified the need to construct additional eastbound and westbound lanes on Herndon Avenue from Riverside Drive to Hayes Avenue. The developers have requested that the City acquire the right-of-way needed for the additional lanes. The right-of-way that is required is from undeveloped parcels and no structures or improvements will be impacted. John Allen Company has deposited $220,000 to fund the acquisition of these properties. Once the properties have been acquired, the developer will hire a qualified contractor to complete the improvements in accordance with City-approved street improvement plans. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 this item does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Not applicable because this is not a competitive bid. The developers intend to use local contractors to complete the street improvements. FISCAL IMPACT There will be no impact to the General Fund as a result of the recommended action. John Allen Company LLC, has deposited $220,000 (the funded request for appropriation) to cover any and all costs, including legal fees, contingency and City staff costs. Attachment: 42nd Amendment to AAR No. 2017-165