Reviewed by: Interim Town Manager, Parks and Public Works Director, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/17/2024
ITEM NO: 11
DESK ITEM
DATE: September 17, 2024
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Consider Adoption of a Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
REMARKS:
Attachment 4 contains the staff presentation.
Attachments Received With the Staff Report:
1. Government Code Offer Letter
2. Resolution of Necessity
3. Notice of Hearing on Resolution of Necessity
Attachment Received with this Desk Item:
4. Staff Presentation
This Page Intentionally Left Blank
Shannon Road Repair
Resolution of Necessity
(CIP Project No. 811-0008)
Town Council Meeting
September 17, 2024
Item 11
ATTACHMENT 4
RECOMMENDED ACTION
• Adopt the Resolution of Necessity enclosed in the agenda packet (4/5 vote required).
• Authorize the Town Attorney to take all steps necessary to commence legal proceedings to acquire the Property, to deposit the probable amount of just compensation with the State Condemnation Fund, to apply to the Superior Court for an order permitting the Town to take immediate possession and make immediate use of the Property for the Project, to take all necessary steps to acquire the Property under the law, and to take such actions as she may deem advisable or necessary in
connection therewith.
CONSIDERATIONS
• Tonight’s hearing is to consider adoption of Resolution of Necessity. • The amount of compensation to be paid the owner should not be discussed at this hearing.
• Even if Council adopts Resolution of Necessity, staff will continue to negotiate with each property owner on compensation.
• If unable to agree on compensation, a jury will decide the amount of just compensation in any resulting eminent domain action. • Each Resolution of Necessity must be adopted by a 2/3 vote (4 affirmative votes is the minimum). If adopted, the Town will file a lawsuit in Santa Clara Superior Court to acquire the Property via eminent domain.
HEARING AGENDA
•Project Overview
•Overview of Eminent Domain Process
•Required Findings for Resolution of
Necessity
•Specific Detail by Parcel
PROJECT LOCATION
Shannon Road
Sky Lane
Santa Rosa Drive
AREA SUBJECT TO EMINENT DOMAIN
EMINENT DOMAIN PROCESS
Generally, when a Town seeks to acquire private property for a public use, it follows these steps:
• Town contacts owner to express interest in the property and/or schedule date for appraisal;
• Town hires appraiser to estimate the property’s fair market value, including improvements and damages resulting from the acquisition; • Town offers to purchase property from owner for property’s appraised fair market value;
• If Town and owner cannot agree on purchase price, Town sends owner notice of public hearing on “resolution of necessity”;
• Town holds a public hearing to consider adoption of a “resolution of necessity” to acquire property by eminent domain.
EMINENT DOMAIN PROCESS, continued
• If Town Council adopts a resolution of necessity, Town files a complaint in eminent domain;
• If Town needs possession immediately for the Project, it:
• deposits the “amount of probable just compensation” (i.e., the property’s appraised fair market value) into the State Condemnation Fund; and • files a motion for prejudgment possession.
• Litigation:
• Town and owner conduct discovery and hire appraisers to estimate the Property’s fair market value;
• 90-days before trial: Town and property owner exchange their respective appraisers’ valuations;
• Town and owner depose each other’s experts and (often) participate in mediation; • 20-days before trial: Town and property owner exchange final settlement offers/demands;
• If no settlement, jury fixes just compensation a trial.
REQUIRED FINDINGS –
RESOLUTION OF NECESSITY
California Code of Civil Procedure section 1245.230
Findings Necessary for a Public Agency to Acquire Private Property:
a) The public interest and necessity require the proposed project; b) The proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury;
c) The interests in the property sought to be acquired are necessary for the proposed project; and
d) The Town has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the property, including making the
Government Code offer.
PUBLIC INTEREST AND NECESSITY
OF PROJECT
• Shannon Road from Hicks Road to Short Road – classified as Hillside Collector Street (Page 5-16 of 2040 General Plan)
• Primary evacuation route for East Los Gatos
• Section of Shannon Road in question was acquired by
Town from County in 2018
• 21,929 square feet of acquisition (75%) is property
underlying existing roadway
• 7,878 square feet of acquisition is undeveloped property of the owner
PROPERTY SOUGHT FOR ACQUISITION IS
NECESSARY FOR PROJECT
Construction of two-travel lanes, plus shoulders and guiderails necessitates extending pavement to the north of existing location
PROJECT DESIGN PROVIDES GREATEST
PUBLIC GOOD WITH LEAST PRIVATE INJURY
• Design team considered shifting the entire travel
lane to the south which would have required two
walls; one on the north and one on the south side
of the travel lane; or one larger wall on the south
side
• The proposed design minimizes acquisition need
• The majority of the property to be acquired is
existing paved road, with a minimal area (7,878
square feet, 0.18 acres) of current undeveloped
land of the owner
TOWN HAS COMPLIED WITH STATUTORY
REQUIREMENTS
• Offer to acquire the Property for its appraised fair
market value was provided to owner on June 4,
2024
• Numerous email requests to discuss the issue with
the owner were sent
• The project has complied with the California
Environmental Quality Act (CEQA) via a Categorical
Exemption filed with the County of Santa Clara on
September 10, 2024.
RECOMMENDED ACTION
• Adopt the Resolution of Necessity enclosed in the agenda packet (4/5 vote required).
• Authorize the Town Attorney to take all steps necessary to commence legal proceedings to acquire the Property, to deposit the probable amount of just compensation with the State Condemnation Fund, to apply to the Superior Court for an order permitting the Town to take immediate possession and make immediate use of the Property for the Project, to take all necessary steps to acquire the Property under the law, and to take such actions as she may deem advisable or necessary in
connection therewith.