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Home My WebLink About2000-01-18 City Council (16)TO: City of Palo Alto City Manager’s Report -HONORABLE CITY COUNCIL 1 3 FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:JANUARY 18, 2000 CMR: 110:00 SUBJECT:AMARILLO AVENUE AND EMBARCADERO WAY RELIEF SEWER PROJECT - BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $28,000 FOR THE PURCHASE OF RIGHT-OF-WAY : ACQUISITION TO CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER 9173 "SYSTEM REHABILITAION/AUGMENTATION" RECOMMENDATION Staff recommends that Council approve the attached Budget Amendment Ordinance (BAO) to appropriate an additional $28,000 for the purchase 0f the necessary rights-of-way for the Amarillo Avenue and Embarcadero Way Relief Sewer Project. BACKGROUND , _~ On September 30, 1996, Council approved a consultant agreement with Kennedy/Jenks Consultants, Inc. in the amount of $301,000 for the design of the Amarillo Avenue and Embarcadero Way Relief Sewer Project (CMR:410:96). One of the recommended major capacity relief projects in the 1988 Waste Water Collection System Master Plan (Master Plan), it crosses US 101 at Amarillo Avenue and ties into the manhole at Embarcadero Way. On May 5, 1997, Council approved Amendment No. 1 to the contract with Kennedy/Jenks for surveying services and for a limited update of the Master Plan. At thattime, the Council authorized staff to proceed with preliminary right-of-way discussions on private property for rights-of-entry and preparation of easement descriptions, as well as geotechnical investigations in public rights-of-way and in easements on private property; and supported staff’s recommendation on CEQA documentation for the project (CMR:221:97). On January 12, 1998, Council approved staffs recommendation on the proposed relief sewer route and the expenditure of funds in the amount of $160,000 for the purchase of the necessary rights-of-way for the project; Council also adopted a Negative Declaration with a finding of no significant environmental impact (CMR:101:98). On May 17, 1999, Council CMR: 110:00 Page 1 of 3 approved: 1) the Resolution of Necessity and the filing of eminent domain proceedings for the three privately-owned parcels on which the City requires rights-of-way for the project (CMR 243:99); and 2) an award of construction contract to Mountain Cascade, Inc. and Amendment No. 2 to the consultant contract with Kennedy/Jenks for related additional work whic~ ~-may develop during the project (CMR 249:99). DISCUSSION ~ncil approval of the Resolution of Necessity, staff acquired the necessary rights-of-way on one of the three parcels through negotiations. For the other two parcels, staff applied for an Order of Possession and deposited $130,000 with the Court for the "probable amount of compensation" based on the appraised fair market value of the temporary and permanent rights-of-way. The fair market value of the rights-of-way required for the project~.was appraised on October 21, 1997 by a state-certified general real estate appraiser. Based on this appraisal, staff estimated total costs to acquire the rights-of-way, plus contingency, to be $160,000. Since then, the project has be.e~n delayed for several reasons. The originally-approved alignment had to be modified due to findings in the geotechnical investigations and this in turn resulted in the need to perform and analyze additional soil borings for the revised alignment, the need for additional surveying services and additional time for preparation of new easements for the project. In addition, negotiations with property owners stalled, and eminent domain proceedings had to be initiated. In preparation for eminent domain proceedings, on July 30, 1999, an updated appraisal report was prepared indicating that the fair market value of the necessary rights-of-way had increased significantly, from $30 per square foot to $43 per square foot. Although the original budget of $160,000 for acquisition of the rights of way had included some contingency, an additional $28,000 is needed now to compensate the property owners. It should be noted that this amount is the "probable amount of compensation", and must be available to the owners should they choose to withdraw the funds prior to the completion of the eminent domain process. However, it may be necessary for staff to return to Council when the eminent domain action is settled to request additional funds for the purchase of the rights-of-way. RESOURCE IMPACT The attached BAO will transfer $28,000 from the Wastewater Collection Rate Stabilization Reserve to Capital Improvement Program Project Number 9173 "System Rehabilitation/Augmentation" for the purchase of the necessary rights-of- way for the Amarillo Avenue and Embarcadero Way Relief Sewer project. CMR:I10:00 Page 2 of 3 POLICY IMPLICATIONS This-Budget Amendment Ordinance City policies. doesnot represent any change to existing ENVIRONMENTAL ASSESSMENT The Council approved a Negative Declaration for the project on January 12, 1999. ATTACHMENTS Attachment A: Attachment B: Attachment C: Budget Amendment Ordinance Budget Amendment Ordinances Impacting Utilities Rate Stabilization Reserves Approved to Date in 1999-00 Map of Project PREPARED BY: Donna Hartman, Financial Analyst DEPARTMENT HEAD APPROVAL: CARL Services CITY MANAGER APPROVAL: .City Manager CMR:110:00 Page 3 of 3 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING ’THE ~BUDGET FOR THE FISCAL YEAR 1999-00 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $28,000 TO CAPITAL IMPROVEMEN~ PROGRAM PROJECT NUMBER 9173 SYSTEM~ ’REHABILITATION/AUGMENTATION FOR THE PURCHASE ~OF THE RIGHTS-OF-WAY FOR THE AMARILLO AVENUE AND EMBARCADERO WAY RELIEF SEWER PROJECT WHEREAS, pursuant to the provisions of Sectiqn 12 of Article III of the Charter Of the City of Palo Alto, the Council on June 28, 1999 did adopt a budget for fiscal year 1999-007 and --.~ ~ WHEREAS, ~t,he b~dget includes fun~s for .the Amarillo Avenue and Embarcadero Way Relief Sewer Proj@ct (TIP 9173)including $160,000 for the purchase of-the n~cessary rights-of-way; and WHEREAS, due to findings in the geotechnical investigations, the project has been delayed. In addition, negotiations with property owners stal~!ed, and eminent domain proceedings had to be initiated; and WHEREAS, ’on July 30, 1999, an updated appraisal report was prepared indicating that the fair market value of the necessary rights-of-way had increased significantly; and WHEREAS, an additional $28,000 compensation to property owners; and is needed to offer as WHEREAS, City Council authorization is needed to amend the 1999-00 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The sum of Twenty Eight Thousand Dollars ($28,000) is hereby appropriated to Capital Improvement Project Number 9173, Wastewater Collection System Rehabilitation/Augmentation and the Wastewater Collection Rate Stabilization Reserve is Gorrespondingly reduced. SECTION 2. This transaction will reduce the Wastewater Collection Rate Stabilization Reserve from $7,126,031 to $7,098,031. SECTION 3. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 4. The Council approved~ a Negative Declaration for the project on January 12, 1999. ,~ SECTION 5. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become ~effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ~’~ ABSTENTIONS,: ABSENT: ATTEST: City Clerk APPROVED: Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director Services of Administrative AR[.MELLO AVENUE / EM~ARCADER.O WAY RELIEF SEWER PRO~ECT - ClP 37770 ATTACE-h’~[ENT c - PROJECT LOCATION MAP