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CC 2024-06-11_09j Traffic Way Bridge Temp Construction Easement Execution MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shannon Sweeney, City Engineer SUBJECT: Consider Traffic Way Bridge Temporary Construction Easement Execution DATE: June 11, 2024 RECOMMENDATION: Authorize the City Manager to fully execute a temporary construction easement (TCE) for certain real property, more particularly described as Assessor Parcel Number 007-481- 011, that is necessary for the Traffic Way Bridge Replacement Project. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Adequate funding for right-of-way acquisition costs was appropriated in the FY 2023-25 CIP Budget. The cost associated with this TCE is $9,900. 88.53% of the cost for securing this TCE is provided through the Highway Bridge Program, which is funding a majority of this project. Fully executing this TCE now helps to maintain the current funding and construction schedule. BACKGROUND: Traffic Way Bridge was first constructed over Arroyo Grande Creek in 1932. The Bridge is programmed for replacement in calendar year 2025. 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. 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, 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. Item 9.j. City Council Consider Traffic Way Bridge Temporary Construction Easement Execution June 11, 2024 Page 2 On September 26, 2023, the City entered into an agreement with Hamner, Jewell, and Associates. 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. On May 14, 2024, the City Council fully executed temporary construction easements with the six property owners that had signed agreements prior to that meeting. Negotiations continued with the remaining three property owners. As of June 5, 2024, one additional property owner has signed a TCE agreement. Negotiations continue with the two remaining property owners. The City Council authorized a Resolution of Necessity on April 23, 2024 to pursue eminent domain if negotiations are unsuccessful. ANALYSIS OF ISSUES: The attached TCE has already been signed by the property owner. Authorizing staff to execute this TCE allows for access to and staging for the Traffic Way Bridge Replacement Project. ALTERNATIVES: 1. Authorize the City Manager to fully execute the attached TCE; 2. Do not authorize the City Manager to fully execute the attached TCE; or 3. Provide other direction to staff. ADVANTAGES: Securing this TCE allows for access to and staging for the Traffic Way Bridge Replacement Project. 88.53% of cost for securing this TCE is provided through the Highway Bridge Program, which is funding a majority of this project. Fully executing this TCE at this time helps to maintain the current funding and construction schedule. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: 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). Securing this TCE, 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 action is taken pursuant to, and in conformity with, Item 9.j. City Council Consider Traffic Way Bridge Temporary Construction Easement Execution June 11, 2024 Page 3 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. PUBLIC NOTIFICATION AND COMMENTS: with Government Code Section 54954.2. ATTACHMENTS: 1. Temporary Deed and Easement Documents for APN 007-481-011 Item 9.j. BUUBDINFOU2 QBSDFM!OP/;007-481-011 QSPKFDU;!City of Arroyo Grande -Traffic Way Bridge PXOFS;Raffi and Minas Kaloosian HSBOUPS“T!QSPQFSUZ;!!!125/135 Traffic Way Arroyo Grande, CA 93420 UFNQPSBSZ!DPOTUSVDUJPOFBTFNFOU!BHSFFNFOU THIS AGREEMENT(“Agreement”)is made and entered into by and between Raffi M. Kaloosian, a married man as his sole and separate property; and Minas Kaloosian, a single man, as joint tenants (hereinafter collectively called “Seller”/“Grantor”),andthe City of Arroyo Grande, a California municipal corporation(hereinafter called “Buyer”/ “City”). The Parties hereto have executed this Agreement on the dates set forth below next to their respective signatures.This Agreement shall be effective as of the date, following all legally required notices and hearings, this Agreement has been approved by Buyer’s governing body or its delegated representative and signed by all Parties (“Effective Date”). Seller and Buyer may collectively be referred to as the parties, and agree as follows: An instrument in the form of aTemporary ConstructionEasement Deed(“Easement Deed”) covering the property particularly described therein(“Easement Area”), has been executed concurrently with this Agreement and delivered to City representatives. In consideration of which, and other considerations hereinafter set forth, it is mutually agreed as follows: 1. The parties have herein set forth the whole of their agreement. The performance of this Agreement constitutes the entire consideration for said document and shall relieve the City of all further obligation or claims on this account, or on account of the location, grade or construction of the proposed Traffic Way Bridge Replacement Project(“Project”). 2. The City shall: A. PAYMENT-Pay to the order of the Grantor the sum of NineThousandNineHundred Dollars (%:-:11*as consideration in full for the propertyinterestsdescribed in the Easement Deed, for the loss, replacement and moving of any improvements, and for entering into this Agreement, which includes, without limitation, full payment of just compensation for any eminent domain related compensation claims, claims for inverse condemnation or unreasonable pre-condemnation conduct, attorneys’ fees, costs and interest in complete settlement of all claims (known and unknown), causes of action and demands of Seller against the Buyer because of Buyer’s purchase of the property rights conveyed by the Easement Deed, and for any and all claims (known and unknown) arising from or relating to the purchase and sale which is the subject of this Agreement. Said sum shall be paid within thirty days of the date of City acceptance and execution of this Agreement. AP N: 007-481-011 City of ArroyoGrande/Traffic Way Bridge/Kaloosian/Agreement2024-05-30 Page 1of 5 B. RECORDATION OF INSTRUMENT-Accept the Easement Deed andmay,at City’s sole discretion,cause the same to be recorded in the office of the San Luis ObispoCounty Recorder. C. MISCELLANEOUS COSTS-Pay any and all transactional closing costsand recording fees incurred in this transaction. D. CLEARANCE OF BONDS, ASSESSMENTS, OR DELINQUENT TAXES-Have the authority to deduct and pay from the amount shown in Clause 2.A. above any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which the deeds record,together with penalties and interest thereon, and/or delinquent and unpaid nondelinquent assessments which have become a lien as of the date of this Agreement. E. PROPERTY CONSTRUCTION AND RESTORATION–City shall, upon completion of construction,generally restore the Easement Areato a comparable or better conditionasthat whichexisted prior to City’s project construction, to the extent reasonably practical,in accordance with the provisions of the Easement Deedand the construction plans for the Project, on file in City offices.Creek vegetation within the Easement Area will be restored with native vegetation in accordance with required Project permit conditions. City authorizes the installation of twosignsthat may be erected by Grantor, at Grantor expense, on Grantor’s property, which is commonly referred to as 125-135 Traffic Way, Arroyo Grande, AP# 007-481-011 (“Grantor’s Property”). One sign shall be permitted for temporary installation at theBridge Street driveway entranceof Grantor’s Property, showing Grantor’s business name. Said sign shall not exceed a size of 3’ X 5’and shall be removed upon completion of Project construction. The second sign shall be permitted and affixed on the Bridge Street-facing sideof Grantor’s building on Grantor’sProperty,and shall not exceed a size of 4’ X 6’.Grantor shall submit sign specifications for each sign to City before creating and erecting said signs, for City approval, which shall not be unreasonably withheld and shall be issued within 60 days following sign design submittal to City. City sign permits shall be issuedat no cost to Grantor. Access to Grantor’s Property from Traffic Way shall be consistently maintained throughout the Project's duration. City agrees to provide Grantorwith a minimum of 72 hours’ advance notice prior to commencing any construction on the sidewalk conformthat wouldtemporarily affect Grantor’s accessto Grantor’s Property. Any temporary restrictions on access through Grantor’s Traffic Way driveway shall not exceed 72 hours andshall be restored at the earliest feasible opportunity. With regard to Grantor’s Traffic Way frontage that will not be improvedas part of the City’s Traffic Way Bridge Replacement Project, City hereby grantsa waiver that shall exemptGrantor from ADA compliant modificationrequirements to the curb, gutter and driveway along the Traffic Way frontage of Grantor’s Property that could otherwise be mandated and triggered by future modifications toGrantor’s Property.This waiver will take effect upon execution of this Agreementandwill remain in effect for theduration of theGrantor’sownership of Grantor’s Property; provided however, that this waivershall automatically terminatein the event 1) Grantor sells Grantor’s Property;or 2) after the City completes additional Traffic Way improvements along the frontage of Grantor’s Property.The waiver does not apply if Grantor makes improvements to Grantor's Property that expands buildings, adds new structures, or demolishes and reconstructs the existing structures on Grantor’s Property. . AP N: 007-481-011 City of ArroyoGrande/Traffic Way Bridge/Kaloosian/Agreement2024-05-30 Page 2of 5 F. INDEMNIFICATION-Indemnify and hold harmless the Grantor from any and all claims, damages, costs, judgmentsor liability proximately caused by City or its officers, employees, contractors or agents specifically arising from City’s construction and restoration work within the Easement Area during thetemporary easement period specified in the Easement Deed. 3. The Grantor: A.LEASE INDEMNIFICATION-Warrants there are no oral or written leases on all or any portion of the Easement Area or if there are such leases, Grantor agrees to hold the City harmless and reimburse City for any and all of its losses and expenses occasioned by reason of any lease encumbering theEasement Area. Grantor shall provide City use of the Easement Area free of any leases that may conflict with City’s rights under the EasementDeed provisions. B. TITLE INDEMNITYAND WARRANTY-In consideration of the City waiving requirements to clear any defects and imperfections in all matters of record title, Grantor indemnifies and holds the City harmless from any and all claims that other parties may make or assert on the title to the Easement Area. Grantor’s obligation to indemnify the City shall not exceed the amount paid to the Grantor under this Agreement. Grantor hereby represents and warrants that he/she/they are the sole vested owners of the Easement Area, holding all ownership and possessory rights, and are the authorized signatories to grant the easement rights referenced in this Agreement and the Easement Deed without conflict or claims from other parties. C. SUPPLEMENTAL FORMS-Agrees to provide all required supplemental forms necessary to complete this transaction, including a W-9 Form required for payment processing. D. GRANTOR’S KNOWLEDGE OF THE ENVIRONMENTAL CONDITIONS OF THE PROPERTY–Hereby represents and warrants that to the best of Grantor’s knowledge and belief, throughout the period of ownership by Grantor, there has been no spill, discharge, release, cleanup or contamination of or by any hazardous or toxic waste or substance used, generated, treated, stored, disposed of or handled by the Grantor, its employees, and/or agents on or around the Easement Area. Further, Grantor agrees to disclose to the City of Arroyo Grande, prior to the close of escrow, all studies, reports, and investigations, known to Grantor, concerning any pollution, toxic building materials or toxic hazardous substances or wastes located at, on, or under theEasement Area. 4. The Parties agree: A.ARTICLE HEADINGS-Article headings in this Agreement are forconvenience only and are not intended to be used in interpreting or construing the terms, covenants and conditions of this Agreement. B.COMPLETE UNDERSTANDING-This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions, and preliminary agreements or understandings, written or oral. This Agreement may not beamended except in writing by the parties hereto or their successors or assigns. C.CITY COUNCIL APPROVAL-This Agreement is subject to and conditioned upon approval by the Arroyo GrandeCity Council.This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. AP N: 007-481-011 City of ArroyoGrande/Traffic Way Bridge/Kaloosian/Agreement2024-05-30 Page 3of 5 D. TITLE VI CIVIL RIGHTS ACT COMPLIANCE-The parties to this contract shall, pursuant to Section 21.7(a) of Title 49, Code of Federal Regulations, comply with all elements of Title VI of the Civil Rights Act of 1964. This requirement under Title VI and the Code of Federal Regulations is to complete the USDOT-Non-Discrimination Assurance requiring compliance with Title VI of the Civil Rights Act of 1964, 49 C.F.R. Part 21 and 28 C.F.R. Section 50.3. No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is the subject of this contract. E.COUNTERPARTS-This Agreement may be executed in counterparts, each of which so executed shall irrespective of the date of its execution and delivery be deemed an original, and all such counterparts together shall constitute one and the same document. F.SUCCESSORS AND ASSIGNS-This Agreement shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. G. SETTLEMENT PROPOSAL-This Agreement represents Seller’s settlement proposal and is expressly subject to and contingent upon City approval. City shall not be bound to the terms and conditions herein unless and until this Agreement has been approved and executed by the appropriate City official(s) acting in their authorized capacity. H. ELECTRONIC AND FACSIMILE SIGNATURES–In the event that the parties hereto utilize electronic or facsimile documents which include signatures, such documents shall be accepted and deemed binding to the same extent as if they bore original signatures. Documents for recordation by the County Clerk Recorder must contain original signatures. Op!Pcmjhbujpo!Puifs!Uibo!Uiptf!Tfu!Gpsui!Ifsfjo!Xjmm!Cf!Sfdphoj{fe/ TFMMFS0HSBOUPS; Raffi M. Kaloosian, a married man as his sole and separate property; and Minas Kaloosian, a single man, as joint tenants ___________________________________Date: ____________________________ Raffi M. Kaloosian, ___________________________________Date: ____________________________ Minas Kaloosian GRANTOR’S MAILING ADDRESS: Raffi M. Kaloosian Minas Kaloosian 135 Traffic Way Arroyo Grande, CA 93420 Tjhobuvsft!dpoujovf!po!ofyu!qbhf† AP N: 007-481-011 City of ArroyoGrande/Traffic Way Bridge/Kaloosian/Agreement2024-05-30 Page 4of 5 CVZFS0DJUZ; City of Arroyo Grande, a California municipal corporation By: ________________________________Date: ____________________________ Matthew Downing City Manager MAILING ADDRESS OF CITY: City of Arroyo Grande 1375 Ash Street Arroyo Grande, CA 93420 AP N: 007-481-011 City of ArroyoGrande/Traffic Way Bridge/Kaloosian/Agreement2024-05-30 Page 5of 5