CC 2024-04-23_10b Resolution of Necessity_Acquisition by Eminent Domain_Temporary Construction EasementItem 10.b.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director
BY: Shannon Sweeney, City Engineer
SUBJECT: Public Hearing to Consider a Resolution of Necessity for Acquisition
by Eminent Domain of Temporary Construction Easement Interests in
Certain Real Property for the Traffic Way Bridge Replacement Project
SUMMARY: Temporary Construction Easements for Assessor Parcel Numbers
007-482-006, 007-481-011, 007-482-026, 006-311-056, and 006-311-067,
for the Traffic Way Bridge Replacement Project, in Arroyo Grande,
California, and Finding that No Further Environmental Review is
Required Pursuant to Public Resources Code Section 21166 and State
CEQA Guidelines Section 15162.
DATE: April 23, 2024
SUMMARY OF ACTION:
Temporary construction easements (TCEs) are needed across nine properties for access
to and staging for the Traffic Way Bridge Replacement Project (Project), scheduled for
construction in 2025. To keep this schedule, right-of-way certification associated with
these TCEs must be completed so that right-of-way for the project can be certified by
Caltrans by August 31, 2024 to keep funding available for construction in 2025. As of April
11, 2024, four of the nine properties signed agreements granting TCEs across their
properties. Offers were made to the remaining five properties at their appraised values,
but as of April 18, 2024, these remaining property owners have not yet signed
agreements. Failure to execute the remaining agreements prior to August 31, 2024 , will
jeopardize this and other projects’ construction schedules. Given the current condition of
the Traffic Way Bridge and its importance to traffic circulation and the public, the City may
need to utilize eminent domain as a last resort to secure the remaining TCEs. The first
step to doing so is holding this Hearing of Necessity.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Adequate funding for right-of-way acquisition costs at the properties’ appraised values
was appropriated in the FY 2023-25 CIP Budget.
Item 10.b.
City Council
Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent
Domain of Temporary Construction Easement Interests in Certain Real Property
for the Traffic Way Bridge Replacement Project
April 23, 2024
Page 2
RECOMMENDATION:
Conduct a public hearing and adopt a Resolution of Necessity declaring that the
acquisition by eminent domain of TCE interests in certain real property, more particularly
described as Assessor Parcel Numbers 007-482-006, 007-481-011, 007-482-026, 006-
311-056, and 006-311-067 (collectively the “Property”), may be necessary for the Project..
This Resolution of Necessity to initiate eminent domain proceedings is a necessary step
towards the construction of the Project, as analyzed in the adopted Mitigated Negative
Declaration (State Clearinghouse No. 2022060452) (“MND”). There are no substanti al
changes to the Project such that revisions to the previously adopted MND are required.
Thus, none of the conditions requiring subsequent environmental review called out in
State CEQA Guidelines section 15162 or Public Resources Code section 21166 are
present, and no further environmental review is required.
BACKGROUND:
Traffic Way Bridge was first constructed over Arroyo Grande Creek in 1932. Its piles,
which are concrete posts driven into the ground for support (see Figure 1), were originally
embedded (set firmly into the ground) 23 feet into dirt.
Figure 1: Traffic Way Bridge Piles
Scour, which is the washing away of soils and creek materials due to creek flow, has
resulted in a loss of embedment. Loss of embedment negatively impacts the stru ctural
Item 10.b.
City Council
Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent
Domain of Temporary Construction Easement Interests in Certain Real Property
for the Traffic Way Bridge Replacement Project
April 23, 2024
Page 3
integrity of the bridge. Chart 1 shows increased depth to soils over time at each of the
piles, starting with data collected in 1993.
Chart 1: Traffic Way Bridge Depth to Soil
A scour evaluation and plan of action prepared in October 2015 indicated that the scour
at some of the piles has reached a level where the capacity of those piles is only two/thirds
of the design load, necessitating planned bridge replacement. Regular inspections have
and will continue to occur, especially after large storms that can aggravate scour
conditions, until the bridge is replaced. The concern is that additional scouring will require
immediate closure if the bridge isn’t replaced in a timely manner . Traffic Way Bridge is a
critical element of traffic circulation, and its unplanned closure will be significantly
disruptive to traffic flow and reduce emergency fire response times to large portions of
the City. Following the January 2023 storms there have been some additional changes in
the piles embedment which are being monitored.
On July 24, 2018, the City Council approved agreements to allow the City to seek
reimbursement from the Local Highway Bridge Program for the Project. This funding will
cover 88.53% of the bridge replacement cost, with the balance coming from local funds.
Evidence of loss in embedment
due to scour
Item 10.b.
City Council
Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent
Domain of Temporary Construction Easement Interests in Certain Real Property
for the Traffic Way Bridge Replacement Project
April 23, 2024
Page 4
Bridge replacement design and plans and specifications development is underway and
approaching the 95% completion level. These design plans confirm that TCEs across
nine properties are needed to complete Project construction.
On January 25, 2023, City staff received notice from Caltrans that the Federal Highway
administration authorized right-of-way funding for the Project, which allowed the City to
begin reimbursable work for the right-of-way phase of the Project.
The City entered into an agreement with Hamner, Jewell, and Associates on September
26, 2023. Since then, the right-of-way consultant has been working diligently to procure
preliminary title reports and third-party appraisals. In March 2024, the consultant
presented offers based on appraisals to all nine property owners with TCE offer letters.
As of April 18, 2024, four of the property owners have signed TCE agreements.
Negotiations continue with the five remaining property owners. However, if th e City is
unable to finalize agreements with these property owners before the August Caltrans
funding deadline, it may become necessary to secure the TCEs using eminent domain.
The first step of the eminent domain process is a Hearing of Necessity.
ANALYSIS OF ISSUES:
The power of eminent domain is used by the City only as a last resort to obtain interests
necessary for projects after 1) negotiations have stalled; 2) the owner has requested that
the City proceed directly to eminent domain for tax or other advantages; or 3) the eminent
domain process is necessary to clear title to the property. In this case, an offer of just
compensation was made to each of the owners for the full Fair Market Value of their
properties as determined by an independent appraiser. City staff has attempted to
negotiate voluntary acquisitions in good faith and will continue to do so throughout the
process.
Description Of TCE Interests to be Acquired
Property affected by the proposed acquisitions of land are located within the City of Arroyo
Grande, California and are described within the Resolution and accompanying Exhibit
“A”.
Hearings and Required Findings
The recommended actions of the City Council pertain to the acquisition of property owned
by 1) The Dohi Trust, 2) M.E.S. Hansen, 3) Raffi M. Kaloosian, 4) Pacific Fuel Group,
LLC, and 5) Adam H. Saruwatari.
California eminent domain law provides that a public entity may not commence an
eminent domain proceeding until its governing body has adopted a Resolution of
Necessity, which resolution may only be adopted after the governing body has given each
Item 10.b.
City Council
Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent
Domain of Temporary Construction Easement Interests in Certain Real Property
for the Traffic Way Bridge Replacement Project
April 23, 2024
Page 5
party with an interest in the affected property or their representatives a reasonable
opportunity to appear and be heard on the following matters:
1. The public interest and necessity require the proposed project.
2. The project is planned or located in the manner that will be most compatible with
the greatest public good and the least private injury.
3. The real property to be acquired is necessary for the project.
4. The offer of just compensation has been made to the property owner.
The above four required findings are addressed as follows:
The Public Interest and Necessity Require the Proposed Project
This Project will improve public safety, update the bridge to current standards, and
remove scour concerns by eliminating any intermediate supports with a single-span
bridge over Arroyo Grande Creek. The replacement bridge will be built on the existing
alignment of Traffic Way, within the current City right-of-way.
Traffic Way Bridge is a key component to Arroyo Grande traffic circulation and its
premature closure will disrupt traffic, including emergency response vehicles. Staff is
working on a temporary route for emergency response to address this issue during
construction.
The Project is Planned or Located in a Manner That Will be most Compatible with the
Greatest Public Good and the Least Private Injury
The new bridge will provide safe access to traffic over Arroyo Grande Creek at Traffic
Way. The Property to be acquired is best suited for the Project and will cause the least
private injury. To move this Project elsewhere would require significant land use policy
changes, cause a greater impact to property owners, and would effectively be cost
prohibitive. Additionally, the impacts of the access is temporary during construction only.
The Real Property to be Acquired is Necessary for the Proposed Project
The Property affected by the proposed acquisition is located within the City of Arroyo
Grande. The Property is necessary for access to and staging for the construction site.
Specifically, the acquisition is necessary to allow for the Traffic Way Bridge Project, in
Arroyo Grande, California.
The Offer of Just Compensation Has Been Made
Appraisals were prepared by an independent State-licensed Certified General Real Estate
Appraiser with Hoffman, Vance, and Worthington, Inc. to establish the Fair Market Value of
the TCE interests of each property the City is seeking to acquire. An offer of just
compensation was made to the owner of record to temporarily purchase TCE interests in
each property to be acquired, as established by the approved appraisal and as required by
Section 7267.2 of the California Government Code. Although negotiated agreements are
still being pursued and may still be possible for the TCE interests cited above, it is important
Item 10.b.
City Council
Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent
Domain of Temporary Construction Easement Interests in Certain Real Property
for the Traffic Way Bridge Replacement Project
April 23, 2024
Page 6
for the City to protect the project funding and schedule by ensuring that the City has the
rights needed for the Right of Way Certification process. It would therefore be appropriate
to conduct the Necessity Hearing so that the City, if the Resolution of Necessity is approved
and adopted, may commence the procedures to acquire the necessary interest through
eminent domain.
NEXT STEPS:
City staff and its right-of-way consultant will continue to work with the remaining property
owners to reach a mutually satisfactory outcome without the need to resort to eminent
domain. The approval of the recommended Resolution of Necessity allows the City to
consider eminent domain should the parties not reach agreement on the necessary TCEs
by the required Project certification and construction schedule dates described above.
ENVIRONMENTAL ANALYSIS:
On September 26, 2023, the City Council adopted an MND for the Traffic Way Bridge
Replacement Project (SCH No. 2022060452). The MND analyzed the environmental
impacts of the Project in compliance with the California Environmental Quality Act
(CEQA). This Resolution of Necessity, which is part of an important and necessary step
towards construction of the Project, will have no direct or indirect physical impacts and
does not constitute a substantial change to the Project such that revisions to the
previously adopted MND are required. In fact, this Resolution of Necessity is taken
pursuant to, and in conformity with, the analysis contained within the previously adopted
MND. Thus, none of the conditions requiring subsequent environmental review called out
in State CEQA Guidelines section 15162 or Public Resources Code section 21166 are
present, and no further environmental review is required.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Conduct a public hearing and adopt a Resolution of Necessity declaring that the
acquisition by eminent domain of TCE interests in certain Property (more
particularly described as APNs 007-482-006, 007-481-011, 007-482-026, 006-311-
056, and 006-311-067), may be necessary for the Traffic Way Bridge Replacement
Project to meet its current construction and Caltrans certification schedule; or
2. Do not adopt a Resolution of Necessity, and thus not allow the acquisition by
eminent domain of TCE interests of Property if required; or
3. Provide other direction to staff.
ADVANTAGES:
This Hearing of Necessity is the first step in the eminent domain process. Adequate time
exists for that City to continue negotiating with property owners for TCE acquisition
without the need for eminent domain. However, if securing the remaining TCE does not
occur in a timely manner, the Hearing of Necessity will enable the City to pursue eminent
Item 10.b.
City Council
Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent
Domain of Temporary Construction Easement Interests in Certain Real Property
for the Traffic Way Bridge Replacement Project
April 23, 2024
Page 7
domain if necessary so that this critical project can remain on schedule. Holding this
Hearing of Necessity provides for adequate time for the eminent domain pro cess to occur
to ensure the rights needed are secured, so that Caltrans can certify project right-of-way
by August 31, 2024, and the construction schedule can proceed.
Maintaining the current schedule for bridge replacement will allow for project comple tion
in an orderly manner and will enable the City to maintain other capital projects schedules,
such as the Halcyon Complete Streets Project, which would be impacted if the Traffic
Way Bridge Replacement Project is delayed.
DISADVANTAGES:
Concerns about unfair compensation during the eminent domain process have been
addressed by obtaining third-party appraisals for the TCEs in question. While the
construction project itself will be disruptive to the impacted properties, the impact is
temporary and replacement of Traffic Way Bridge in an orderly manner will be less
disruptive than closing the bridge prematurely.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2. A Notice of Hearing was mailed on April 8, 2024, by
first class mail to the property owners in accordance with Section 1245.235 of the
California Code of Civil Procedure.
ATTACHMENTS:
1. Proposed Resolution of Necessity