CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 8.6 AGENDA TITLE: Adopt resolution authorizing the City Manager to execute an Agreement for Acquisition of Fee Interest, Pedestrian and Utility Easement and Temporary Construction Easement for property located at 8296 Poppy Ridge Road [a portion of APN(s): 132-0050-044; 132-0050- 052; and 132-0050-091]; together with relocation assistance claims and payments associated with the New Growth Area Infrastructure Project (CEQA Exempt) MEETING DATE: April 12, 2017 PREPARED BY: Julie D. Cline, Real Estate Manager DEPARTMENT HEAD: Robert Murdoch, Public Works Director / City Engineer RECOMMENDED ACTION: Staff recommends the City Council adopt a resolution authorizing the City Manager to execute an Agreement for Acquisition of Fee Interest, Pedestrian and Utility Easement and Temporary Construction Easement with Backer Family Limited Partnership ( Owner ), for the acquisition of the property located at 8296 Poppy Ridge Road [a portion of Assessor Parcel Number(s) 132-0050-044; 132-0050-052; and 132-0050-091] (the Property ), together with associated relocation assistance claims and payments for the Owner s tenants, Kyle Backer and Megan Tillis ( Tenant ) in a total amount not to exceed $521,000. PROJECT DESCRIPTION: In support of the master development plan for Southeast Policy Area ( SEPA ), and buildout of Laguna Ridge Specific Plan ( LRSP ), the City 1
Elk Grove City Council April 12, 2017 Page 2 of 5 proposes to construct the following projects, which are collectively referred to as the New Growth Area ( NGA ) Project: Laguna Ridge South Lift Station; and Big Horn Boulevard Extension from Los Rios Community College to Bilby Road; and Bilby Road Extension from Bruceville Road, through the Big Horn intersection, to the edge of Shed C. The NGA Project includes construction of the Laguna Ridge South Lift Station, which will provide sewer service to the portion of LRSP south of Poppy Ridge Road, as well as the majority of SEPA (including the employment areas), and the extension of Big Horn Boulevard and Bilby Road, whereby the City proposes to construct the two inside lanes and median for the segments, leaving the frontage lanes and landscape corridors as a developer responsibility. Improvements would also include water and sewer trunk lines and joint trench for electrical, gas, and telecommunications. BACKGROUND INFORMATION: On June 8, 2016, City Council approved resolutions authorizing the issuance and sale of special tax bonds on behalf of Community Facilities District ( CFD ) No. 2005-1 ( Series 2016 ) for the Laguna Ridge Specific Plan Area. The purpose of the CFD is to fund backbone infrastructure and facilities such as roadways, drainage facilities, sewer facilities, landscape corridors, parks, parkways, community recreation and aquatic center, and other facilities. The proceeds from the Series 2016 will fund a portion of the New Growth Area (NGA) projects. The extension of Big Horn Boulevard and Bilby Road, including construction of the inside lanes and median, will initially be funded using CFD funds, whereby a majority of the CFD contribution would be structured as a loan to the Roadway Fee, with the loan repaid by collected Roadway Fee payments from new development in the surrounding area. Initial funding for the Laguna Ridge South Lift Station would be in the form of loans to be repaid from the collection of sewer impact fees paid by new development. The proposed improvements will provide several benefits, including access and circulation to areas of LRSP, as well as providing a secondary point of access to some of the employment areas of SEPA. 2
Elk Grove City Council April 12, 2017 Page 3 of 5 On February 8, 2017, City Council authorized Staff to negotiate with Backer Family Limited Partnership for those property rights required for the NGA Project. The Property is located within the LRSP, south of the Whitelock Parkway/Big Horn Boulevard Intersection and is zoned multi-family residential. The Backer Family Limited Partnership Property is one of twelve properties impacted by the proposed Project. The location of the Property is depicted on Attachment 3. ANALYSIS: The Property is rural in nature, consisting of three Assessor Parcels; 132-0050-044 and 132-0050-052 and 132-0050-091 on 12.57 acres of land, at the southwest corner of the proposed Poppy Ridge Road/Big Horn Boulevard Intersection, south of the Cosumnes River College Elk Grove Center. The home is tenant-occupied and improved with a three bedroom/three bath, attached 2-car garage and additional detached two-car garage. The existing home and detached garage are located within the path of the Project, and proposed for demolition. As part of negotiations for the required right-of-way, Owner requested the option to salvage and relocate the home and detached garage, at Owner s sole expense and liability, resulting in a savings of Project construction costs to the City, by eliminating the need to demolish the single family residence and detached garage. Pursuant to direction from City Council, Staff has negotiated a proposed purchase price of $482,000, equivalent to the appraised value of the Property, which has been accepted by the Backer Family Limited Partnership, subject to City Council approval (Attachment 2). The City s acquisition of the Property will require the relocation of the Tenant. Following the issuance of a 90-day Information Notice, the Tenant will be required to vacate the Property within 90 days. City will provide relocation assistance to the Tenant, adhering to State guidelines. The following is a summary of the costs related to the acquisition of the Property: $ 482,000 Acquisition of right-of-way including SFR $ 35,000 Est. Settlement Relocation Costs $ 4,000 Est. Closing Costs $ 521,000 Est. Total Cost 3
Elk Grove City Council April 12, 2017 Page 4 of 5 The details of the transaction are contained within the Agreement for Acquisition of Fee Interest in Real Property (Attachment 2). Due Diligence The City has completed the following due diligence activities to date: Independent Fair Market Appraisal of the Property. Phase I Environmental Site Assessment, which yielded no adverse conditions on the Property. Elk Grove Municipal Code Section 3.42.300(B), as established in accordance with Section 65402(a) of the California Government Code, requires the purchase of real property be submitted to and reported upon by the planning agency as to the conformity with the adopted General Plan. On April 21, 2016, the Planning Commission by Resolution No. 2016-18 made a finding that the proposed 2016-2021 Capital Improvement Program, ( CIP ), which included the Project as part of the Big Horn Boulevard Improvements ( WTR026 ), is consistent with the City s General Plan. Staff supports the partial acquisition of the Property at the negotiated purchase price of $482,000, as established by an independent Fair Market Appraisal of the Property, and recommends the City Council approve the purchase of the Property, a portion of Sacramento Assessor Parcel Number(s): 132-0050-044; 132-0050-052; and 132-0050-091, from the Backer Family Partnership, together with associated relocation assistance claims and payments for the Tenant, Kyle Backer and Megan Tillis. ENVIRONMENTAL REVIEW: The California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereafter CEQA) requires analysis of agency approvals of discretionary Projects. A Project, under CEQA, is defined as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The proposed Project is a project under CEQA. Staff has reviewed the proposed action and has identified that it qualifies for an exemption from CEQA pursuant to CEQA Guidelines Section 15183 4
Elk Grove City Council April 12, 2017 Page 5 of 5 (Consistency with a General Plan, Community Plan or Zoning for which an EIR was prepared). State CEQA Guidelines Section 15183 (Public Resources Code 21083.3), provides that projects that are consistent with a Community Plan, General Plan or Zoning for which an EIR has been certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. The proposed action involves the acquisition of right-of-way within the Laguna Ridge Specific Plan, for which an Environmental Impact Report was prepared ( LRSP EIR ) and was certified by the City Council on June 16, 2004 (State Clearinghouse No. 2000082139).The acquisition will further the ultimate buildout of LRSP by providing a portion of the necessary rightof-way and backbone infrastructure required. Therefore, there are no effects peculiar to the Project or Property site or substantial new information that would result in new or more severe adverse impacts than discussed in the prior EIR. Therefore, no further analysis is required. FISCAL IMPACT: This Agreement will be funded through a combination of Roadway Fees and Laguna Ridge CFD proceeds. The right-of-way acquisition budget for the Big Horn Boulevard Extension portion of the New Growth Area Infrastructure Project is $1,753,850. ATTACHMENTS: 1. Resolution 2. Agreement for Acquisition of Fee Interest, Pedestrian and Utility Easement and Temporary Construction Easement 3. Location Map 5
ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR ACQUISITION OF FEE INTEREST, PEDESTRIAN AND UTILITY EASEMENT AND TEMPORARY CONSTRUCTION EASEMENT FOR PROPERTY LOCATED AT 8296 POPPY RIDGE ROAD [A PORTION OF APN(S) 132-0050-044; 132-0050-052; AND 132-0050-091]; TOGETHER WITH RELOCATION ASSISTANCE CLAIMS AND PAYMENTS ASSOCIATED WITH THE NEW GROWTH AREA INFRASTRUCTURE PROJECT (CEQA EXEMPT) WHEREAS, in support of the master development plan for Southeast Policy Area ( SEPA ), and buildout of Laguna Ridge Specific Plan ( LRSP ), the City proposes to construct the New Growth Area ( NGA ) Project; and WHEREAS, the NGA Project includes the construction of the Laguna Ridge South Lift Station; the Big Horn Boulevard Extension; and the Bilby Road Extension; and WHEREAS, the Big Horn Boulevard Extension ( Project ) proposes to construct the inside lanes and median, including water and sewer trunk lines and joint trench for electrical, gas, and telecommunications, whereby the developer is responsible for constructing the frontage lanes and landscape corridors; and WHEREAS, State CEQA Guidelines Section 15183 (Public Resources Code 21083.3), (Consistency with a General Plan, Community Plan or Zoning for which an EIR was prepared), provides that projects that are consistent with a Community Plan, General Plan or Zoning for which an EIR has been certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. ; and WHEREAS, a previous Environmental Impact Report ( EIR ) was certified for the Laguna Ridge Specific Plan (SHC 2000082139); and WHEREAS, the proposed Project is consistent with the ultimate buildout of LRSP by providing a portion of the backbone infrastructure required, therefore, there are no effects peculiar to the Project, or substantial new information, that would result in new or more severe impacts than discussed in the prior EIR; and WHEREAS, on June 8, 2016, City Council approved resolutions authorizing the issuance and sale of special tax bonds on behalf of Community Facilities District ( CFD ) No. 2005-1 ( Series 2016 ) for the Laguna Ridges Specific Plan Area, to fund backbone infrastructure; and WHEREAS, the benefit of these improvements is that they provide access and circulation to areas of LRSP as well as providing a secondary point of access to some of the employment areas of SEPA, along with necessary sewer facilities for the buildout of LRSP as well as the majority of SEPA; and WHEREAS, on February 8, 2017 City Council directed staff to proceed with negotiations for 8296 Poppy Ridge Road, a portion of Sacramento County Assessor Parcel Number(s) 132-0050-044; 132-0050-052; and 132-0050-091 ( Property ), for the 6
acquisition of property rights required for the Big Horn Boulevard Extension segment of the New Growth Area Infrastructure Project, including the removal of the single family residence and appurtenant improvements ( Improvements ); and WHEREAS, City staff has negotiated the partial acquisition from the Property with Backer Family Limited Partnership ( Owner ), including the single family residence and detached garage, in the amount of $482,000; and WHEREAS, Kyle Backer and Megan Tillis ( Tenant ) currently occupy the property; the City s acquisition of the Property requires the relocation of Tenant, which estimated relocation assistance claims are not expected not to exceed $35,000; and WHEREAS, Owner requested the option to salvage and relocate the Improvements, at Owner s sole expense and liability, resulting in a savings of construction costs to the City, by eliminating the need to demolish the Improvements; and WHEREAS, the proposed settlement is consistent with the City s General Plan and in compliance with Elk Grove Municipal Code Section 3.42.300(B) and California Government Code Section 65402(a) as determined by the Planning Commission by Resolution No. 2016-18; and WHEREAS, the purchase of the Property will be funded through a combination of the City s Roadway Fee Fund and Laguna Ridge CFD proceeds; and WHEREAS, the California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereinafter referred to as CEQA) requires analysis of agency approvals of discretionary projects. A project, under CEQA, is defined as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Elk Grove hereby finds the acquisition of the subject properties exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan and Zoning) based upon the following finding: Finding: No further environmental review is required pursuant to Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183. Evidence: Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan and Zoning), provide that for projects that are consistent with a community plan, general plan and zoning, where an Environmental Impact Report has been certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site.. The proposed action involves the acquisition of right-of-way within the Laguna Ridge Specific Plan, for which an Environmental Impact Report was prepared ( LRSP EIR ), 7
and was certified by the City Council on June 16, 2004 (State Clearinghouse No. 200008139). The acquisition will further the ultimate buildout of LRSP by providing a portion of the necessary right-of-way and backbone infrastructure identified in the Plan. Additionally, State CEQA Guidelines Section 15162 (Subsequent EIRs and Negative Declarations) requires that when an EIR has been certified for an adopted project, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in light of the whole record, that one or more of the following exists: 1) Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3) New information of substantial importance, which was not known and could not have been known with exercise of reasonable diligence at the time of the previous EIR was certified as complete shows any of the following: a. The project will have one or more significant effects not discussed in the previous EIR; b. Significant effects previously examined will be substantially more severe than shown in the previous EIR; c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measures or alternative. Staff has reviewed the Project and analyzed it based upon the above provisions in Section 15162 of the State CEQA Guidelines. The Project is being undertaken pursuant to and in conformity with the approved the Laguna Ridge Specific Plan. There are no substantial changes in the Project from that analyzed in the 2004 EIR and no new significant environmental effects, or substantial increase in the severity of previously identified significant effects. No new information of substantial importance has been identified. Further, since no changes to the EIR are necessary to support the Project, the City is not required to prepare an Addendum to the EIR as required by State CEQA Guidelines Section 15164. Therefore, the prior EIR is sufficient to support the proposed action and no further environmental review is required. 8
AND, BE IT FINALLY RESOLVED, that the City Council of the City of Elk Grove authorizes the City Manager to execute an Agreement for Acquisition of Fee Interest, Pedestrian and Utility Easement and Temporary Construction Easement with Backer Family Limited Partnership for the acquisition of a portion of the property located at 8296 Poppy Ridge Road, including removal of the single family residence and appurtenant improvements, together with relocation assistance claims and payments, for a portion of Sacramento County Assessor Parcel Number(s) 132-0050-044; 132-0050-052 and 132-0050-091 all in a total amount not to exceed $521,000. PASSED AND ADOPTED by the City Council of the City of Elk Grove this 12 th day of April 2017. STEVE LY, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 9
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ATTACHMENT 3 LOCATION MAP Backer Family Limited Partnership APNs 132-050-044; 132-0050-052; and 132-0050-091 44