REPORT TO THE CITY COUNCIL June 19, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: SCOTT L. TYLER, PE, Interim Assistant Director Public Works Department, Traffic and Engineering Services Division CRAIG L. HANSEN, Supervising Real Estate Agent Public Works Department, Real Estate Services Section PETE CALDWELL, Senior Real Estate Agent Public Works Department, Real Estate Services Section SUBJECT ..Title Public Hearing to consider a Resolution of Public Use and Necessity requiring acquisition of permanent street easements and rights-of-way for public street purposes over, under, through and across real property owned by George Dakovich & Son, Inc (APN 505-080-31s) for the construction of Veterans Boulevard, a six lane Superarterial, from Herndon Avenue to Shaw Avenue in the City of Fresno Adopt a Resolution of the Council of the City of Fresno, California, determining that Public Interest and Necessity require acquisition of easement and Right-Of-Way for Public purposes over, under, through and across real property for the construction of Veterans Boulevard, a six lane Superarterial connecting Herndon Avenue to Shaw Avenue, and related purposes and authorizing Eminent Domain proceedings for public use and purpose (Council District 2) ..Body RECOMMENDATIONS 1. Staff recommends that the Council take the following actions: Conduct a public hearing to consider the adoption of a Resolution of Public Use and Necessity for the acquisition of a street easement for public road purposes from Assessor's Parcel Number 505-080-31s owned by George Dakovich and Son, Inc. 2. Council Adopt a Resolution of the Council of the City of Fresno, California, determining that Public Interest and Necessity require acquisition of easement and Right-Of-Way for Public purposes over, under, through and across real property for the construction of Veterans Boulevard, a six lane Superarterial connecting Herndon Avenue to Shaw Avenue, and related purposes and authorizing Eminent Domain proceedings for public use and purpose. EXECUTIVE SUMMARY Construction of Veterans Boulevard in the proximity of Golden State Boulevard, Bullard Avenue and Riverside Drive is scheduled for early 2015. The project includes the connection of Bullard Avenue from Veterans Boulevard to Carnegie Avenue. This first phase of the project necessitates the acquisition of right-of-way from ten parcels, most of which have been successfully negotiated with the property owners for fair market value. The subject property owner (APN 505-080-31s) has not accepted the offer of $775,000 which was based upon an independent appraisal by Kelly Stevens, under the direction of Larry Hopper, MAI, of Real Property Analysts. The owner has been contacted on several occasions and encouraged to obtain a second appraisal so that an agreement can be reached. It is necessary to commence the eminent domain action at this time so that possession of the property may occur by the end of 2014 and meet construction schedule associated with the Federal finding. BACKGROUND Veterans Boulevard, originally referred to as the Herndon-Grantland Diagonal, was part of the 1984 General Plan and is a planned 6-lane super arterial in the 2025 General Plan. The interchange idea was refined in 1986 with a feasibility study conducted to analyze potential interchange/grade separation configurations, with the intention of determining the alternative best suited to the site and the proposed Veterans Boulevard. In 1991, a Project Initiation Document was completed, and in 1996, the official plan line for Veterans Boulevard was adopted. In recent years, staff as completed the Project Study Report (PSR), Project Report and Environmental Impact Report (EIR). Veterans Boulevard and the proposed interchange with State Route 99 are identified as part of the Circulation Element in both the City and County General Plans. The new interchange would be a partial cloverleaf connecting State Route 99 and Veterans Boulevard. A new Veterans Boulevard overcrossing would span State Route 99 with three northbound and three southbound lanes, a Class I bicycle lane/pedestrian trail on the west side of the structure and Class II bicycle lanes on both sides. Veterans Boulevard will have ramps connecting to Golden State Boulevard and will span over the Union Pacific Railroad. Drainage basins would be built to retain water runoff from the project. Typical freeway interchange landscaping will be provided. The City Attorney's Office has reviewed and approved as to form the proposed Resolution of Necessity. Acquisitions are required from ten parcels for this portion of the Veterans Boulevard Interchange and street widening project. The acquisitions will provide the additional street right of way needed to develop the interchange and the dedicated streets for Veterans Boulevard. The value of the acquisitions was established by an independent, professional real estate appraiser the appraised value is $775,000. The property (APN 505-080-31s) was appraised by independent appraiser Kelly Stevens, under the direction of Larry Hopper, MAI of Real Property Analysts. Staff presented the offer of $775,000 to the property owner on January 14, 2014. The property owner believes that their property has more value than what is being offered by staff based on the independent appraisal completed. The property owner has been contacted on several occasions in an attempt to reach a voluntary agreement with them and to encourage the owners to get a second appraisal in order to try and reach a negotiated agreement. Staff to this date has not been given a second appraisal by the owner in order finalize the negotiations. Acquisitions have already been made from surrounding property owners to accommodate the interchange improvements. Construction is scheduled for early 2015 on the Veterans Boulevard Bridge over the railroad, requiring that the right-of-way be secured. It is necessary to commence the eminent domain action at this time so that possession of the required acquisitions can be obtained and Federal funds secured by the end of the 2014. The order of possession process usually takes four to nine months to conclude. Staff recommends Council adopt the recommended Resolution of Public Use and Necessity which authorizes the City Attorney to initiate an eminent domain action and obtain an order of possession of the property. It requires five votes for approval and is subject to veto by the Mayor. Exhibit "A" is the legal description of the property to be acquired and is attached to the Resolution of Public Use and Necessity, which has been prepared and approved by the City Attorney's Office, with findings as follows: 1. The public interest and necessity require the proposed project. Veterans Boulevard and the proposed interchange with State Route 99 are identified as part of the Circulation Element in both the City and County General Plans. The new interchange would be a partial cloverleaf connecting State Route 99 and Veterans Boulevard. 2. The proposed project is planned in a manner that will be most compatible with the greatest public good and the least private injury. The new street improvements would add a new interchange to State Route 99 as well as a new city superarterial that enhances the local circulation network. This project will improve deficient local circulation network that does not adequately accommodate local development and provide consistency with existing and planned local and regional development. The project cannot be constructed without acquiring this acquisition for permanent street easements and rights-of-way being sought. 3. The property is necessary for the proposed project. It is necessary to acquire the subject property in order to construct the interchange which would provide additional north-south access from State Route 99 between Shaw Avenue and Herndon Avenue in accordance with the City of Fresno 2025 General Plan. Acquisitions have already been made from surrounding property owners to accommodate the interchange improvements. 4. An offer to purchase the required street easement has been made pursuant to Section 7267.2 of the Government Code. A written offer of the appraised fair market value has been delivered (January 14, 2014) to the owner of the affected property pursuant to the requirements of the California Government Code. ENVIRONMENTAL FINDINGS The proposed project is a joint project by the Caltrans and the Federal Highway Administration, and is subject to state and Federal environmental review requirements. Project documentation; including an EIR, have been prepared in compliance with both the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). Caltrans is the lead agency under National Environmental Policy Act. Caltrans is the lead agency under California Environmental Quality Act. In addition, Federal Highway Administration's responsibility for environmental review, consultation, and any other action required in accordance with applicable Federal laws for this project is being, or has been, carried out by Caltrans under its assumption of responsibility pursuant to 23 United States Code 327. LOCAL PREFERENCE N/A FISCAL IMPACT The $130 million Veterans Boulevard Project which is located in Council District 2 will have no impact upon the General Fund. The Veterans Boulevard project is being funded through Measure "C" Tier 1 funds, Citywide Regional Street Impact fees, State Transportation Improvement Program (STIP) funding, Regional Transportation Mitigation Fees (RTMF) and Federal transportation funds. Attachment: Vicinity Map Resolution of Public Use and Necessity