REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Execute an Agreement for Purchase of Certain Property Rights and Acceptance of Two Temporary Construction Easements and Two Aerial Easement Deeds in Relation to the Fair Oaks Avenue Overhead Bridge Rehabilitation Project.
Report
BACKGROUND
The Fair Oaks Avenue Overhead Bridge (bridge) is located on Fair Oaks Avenue between Kifer Road and Evelyn Avenue. The bridge crosses over Hendy Avenue, railroad tracks owned by the Peninsula Corridor Joint Powers Board (Caltrain), and is adjacent to an apartment community. A location map is included as Attachment 1. The bridge was constructed in 1967 and was seismically retrofitted in both 1981 and 1993. Caltrans inspects the bridge, and evaluates structural integrity and functionality every two years. As of April 2016, Caltrans records indicate that the bridge has severe deck cracking and spalling; as well as inadequate sidewalk width, barriers and approach railings. The bridge is considered safe for driving but in need of a substantial rehabilitation.
The Fair Oaks Avenue Overhead Bridge Rehabilitation Project (Project) will rehabilitate the bridge to address several identified structural deficiencies and will expand bicycle and pedestrian amenities. The rehabilitated bridge will maintain its current automobile capacity of two travel lanes in each direction, however, the Project will widen existing bicycle lanes from five feet to six feet and will add a sidewalk on the east side of the bridge. Currently, the bridge does not have a sidewalk and pedestrians use the pedestrian overcrossing (POC) structure over the Caltrain tracks adjacent to the bridge. The Project proposes to remove the POC, which itself has several inadequacies. The ramps on the POC are too steep to comply with the Americans with Disabilities Act (ADA) and the southern entry point to the POC can be challenging for pedestrians to locate. The obscurity of the POC and its access points has made the POC an "attractive nuisance" for graffiti and improper disposal of garbage/waste. The project will also construct improvements to the intersections at the northern and southern ends of the bridge. These improvements are intended to improve the safety of drivers, pedestrians, and bicyclists using the bridge and its connecting roadways, as well as bring into compliance with ADA requirements.
The Project cost is estimated at $22 million for preliminary engineering, right-of-way work, including acquisition and bridge construction. Federal grant funding will account for 88% of the total cost, with the remaining 12% funded by the City.
Construction was anticipated to begin in the spring of 2016, but due to delays in negotiating with all the affected property owners along the bridge for the required easements, it is anticipated to begin in spring 2017. The City proposes to phase the construction over approximately 16 months. During this time, temporary lane reductions on the bridge and brief bridge closures may be required. In addition, the portion of Hendy Avenue beneath the bridge would be closed for up to several months. The extent of the temporary Hendy Avenue closure would not include either of the public driveways into the Home Depot or any other intersection to allow continued access for emergency services. The anticipated construction method does not assume the use of pile driving, which substantially reduces the potential for disruptive noise and vibration effects.
EXISTING POLICY
General Plan, Chapter 3, Policy LT-5.4 - Maintain Roadways and traffic control devices in good operating condition and;
General Plan, Chapter 3, Policy LT-5.8 - Provide a safe and comfortable system of pedestrian and bicycle pathways.
ENVIRONMENTAL REVIEW
The adoption of the Resolution to execute the purchase agreement and accept the easements does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment. The City Council certified the Environmental Impact Report and adopted the Mitigation Monitoring and Reporting Program for the Fair Oaks Avenue Overhead Bridge Rehabilitation Project on March 17, 2015 (RTC 15-0143).
DISCUSSION
Since completion of engineering design on the Project, it was determined that easements are required over the existing apartment complex property, known as Heritage Apartments (see Attachment 1) to proceed with the construction of the Project. Heritage Apartments is currently owned by two different entities, with the property line separated by Fair Oaks Avenue Bridge. The Project will also require the acquisition of easements from Home Depot, but those negotiations are still in progress and will be brought to Council at a later date.
It was determined that an additional aerial easement (AE) will be required on the west side of the bridge due to railing and street light work proposed on the west side. The east side of the bridge is where the majority of the widening will take place to accommodate the new sidewalk and bicycle lane; therefore AE’s and temporary construction easements (TCE) are required on both sides of the bridge with Heritage Apartments property to allow construction to start. The TCE’s will have an 18-month timeframe which starts when the City notifies Heritage Apartments of the start of construction, while the AE’s will be a permanent easement as long as the bridge is in place.
Since the Project is partly funded by a federal grant, there are certain rules and restrictions that have to be followed when obtaining property for the Project. Universal Field Services, Inc. (Universal) was retained by BKF Engineers on behalf of the City to acquire the right-of-way required for the Project, based on their knowledge and expertise in relation to the federal requirements.
Once the City obtained an appraisal for the required easements from Integra Realty Resources in November 2015, Universal submitted an offer package to Heritage Apartments based on their fair market value listed at $281,000. Heritage Apartments elected to obtain an independent appraisal pursuant to Civil Code of Procedures Section 1263.025, which the City would pay for the actual reasonable costs up to $5,000, as they felt the value was too low.
Heritage Apartments’ independent appraisal was prepared by Enright & Company, Inc. in June 2016, with their fair market value listed as $437,535, a value in which Heritage Apartments presented the City as a counter offer. The increase in value was due to several reasons; most notably the comparable properties and values used in the City’s appraisal were dated and needed to be adjusted to current values. Universal, on behalf of the City, negotiated with Heritage Apartments on some of the values and both parties were ultimately agreeable to the fair market value amount of $382,275 for the easements required. Without the acquisition of these required easements, the project would be unable to be constructed, and the grant funds may not be allocated.
The Agreement for Purchase of Certain Property Rights (Attachment 2) has been prepared by Universal and is required per the federal grant used on the acquisition portion of the project. Escrow will be opened and all the executed documents and funds will be transferred after approval of this action. The attached resolution (Attachment 7) also authorizes the City Manager to accept two TCE’s (Attachment 3 & 4) and two AE’s (Attachment 5 & 6), which will be recorded once escrow closes.
FISCAL IMPACT
The project is funded by a combination of Federal Highway Bridge Program (HBP) revenues (approximately $20.0 million) and a local matching fund transfer from the Infrastructure Renovation and Replacement Fund (approximately $2.8 million). The budget for Project 825610, Fair Oaks Avenue Overhead Bridge Repair, does include funding for right of way acquisition. Should any additional eligible grant funding sources become available, staff will evaluate the use of such funds to offset the $2.8 million currently budgeted for the local match portion of the project.
The cost to acquire the two aerial easement deeds and two temporary construction easements was negotiated based on appraisals received by the City and Heritage Apartments. The agreed upon negotiated price for the easements is $382,275.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Adopt the resolution authorizing the City Manager or her designee to execute the Agreement for Purchase of Certain Property Rights with Monument 3: Realty Fund VII, LTD and with Monument 3: Realty Fund VIII, LTD in the amount of $382,275, and accept on the behalf of the City two aerial easement deeds and two temporary construction easements in relation to the Fair Oaks Avenue Overhead Bridge Rehabilitation Project.
Staff
Prepared by: Ryan Sandoval, City Property Administrator
Reviewed by: Manuel Pineda, Director, Public Works]
Reviewed by: Kent Steffens, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Location Map
2. Agreement for Purchase
3. TCE - Monument VII
4. TCE - Monument VIII
5. Aerial Easement - Monument VIII
6. Aerial Easement - Monument VII
7. Resolution