Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: MARCH 19, 2024
SUBJECT: AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH EPIC LAND SOLUTIONS, INC., FOR EASEMENT APPRAISAL AND ACQUISITION
SERVICES FOR THE GOLDEN AVENUE BRIDGE REPLACEMENT PROJECT FISCAL
IMPACT: EXPENSE: $ 30,895.00 AMENDMENT NO. 1 TO PROFESSIONAL
SERVICES AGREEMENT
AVAILABLE
BUDGET: $ 2.446.099.16 TOTAL AVAILABLE PROJECT BUDGET
$ 2,200,000.00 FEDERAL EARMARK
(331801-6740 J/L 331801-6740)
$ 246,099.16 GENERAL FUND DEVELOPER FEE
(331801-6740 J/L 331801-6740)
SUMMARY:
Golden Avenue Bridge was constructed in 1934 and was rated as "functionally obsolete" by the California Department of Transportation (Caltrans) in 2005. Since 2015, the City has worked with an engineering design team to complete the final design package for a new bridge which was ultimately completed in December of 2019. At the same time, it was discovered that temporary construction and permanent easements for portions of the bridge footings were needed from private property owners on some of the adjacent properties. Staff reached out to all the affected property owners and in good faith negotiated and acquired all easements necessary for the construction of the new bridge. Subsequently, the City was awarded a Federal Earmark totaling $2.2 million towards the cost of the project. These funds are being routed through the Federal Highway Administration (FHWA). Unfortunately, such Federal funding triggers requirements that must be met to be able to properly utilize these funds. The City was notified by Caltrans that the methods for acquiring these easements did not follow FHWA regulations. Even though local funds were used to acquire the easements, Federal grant funds were used to design the project and if one single Federal dollar is used in any phase of a project then the entire project is subject to Federal regulations.
On May 17th, 2023, the City signed an agreement with Epic Land Solutions (ELS) to assist with the corrective actions, following all Federal and State guidelines. ELS is a Caltrans -certified real property agent well -versed in FHWA requirements who is now assisting the City with all the necessary tasks related to the easement acquisition, including preparation of quitclaim deeds, appraisals and negotiations for new easements and acquisition services. All work is now being
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March 19, 2o2a
City Council Agenda
March 19, 2024
coordinated through Caltrans and in compliance with FHWA regulations. ELS has since prepared quitclaim deeds for reverting the easements to the property owners and has begun the appraisal process for two of the properties under the assumption that the City had ownership rights through the Subdivision Map Act on the remaining three properties. After meeting with Caltrans' management, they informed the City that four out of five properties need to be negotiated and handled by outside 3rd party consultants. Amendment No. 1 in the additional amount of $30,895 will provide additional funding to ELS to prepare two additional appraisals to meet Caltrans' ROW certification in accordance with the FHWA regulations. ELS's scope of work includes independent valuation, preparation of offer letters, preparation of appraisal reports, administration of settlements, and management and negotiation with the property owners.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 1 to the Professional Services Agreement with Epic Land Solutions, Inc. to increase the contract not -to -exceed amount by an additional $30,895; and
2. Authorize the City Administrator to approve contract amendments up to 10% of the cumulative contract amount, or $7,064.34; and
3. Authorize the City Administrator and/or his designee to execute all the necessary documents, in a form approved by the City Attorney.
DISCUSSION:
The Golden Avenue Bridge over Carbon Canyon Channel was originally built in 1934. The bridge was inspected by Caltrans in 2005 and rated as "functionally obsolete" at that time. There are currently no sidewalks or bicycle lanes on the bridge resulting in pedestrians, bicyclists, and motorists sharing the road at the same time. The Bridge crosses over the channel, which is a blue line stream and a regional flood control facility. Three (3) separate regulatory agencies have jurisdiction over the channel: Army Corps of Engineers; Department of Fish and Wildlife; and Regional Water Quality Control Board. Regulatory permits from all three (3) agencies are required and were obtained for this project. In addition, the channel is a regional flood control facility managed by the Orange County Flood Control District.
The design plans for a bridge replacement project were finalized back in December of 2019, however, during the final design phase, it was determined that several easements were needed to accommodate the bridge construction. The City negotiated in good faith with the affected property owners and subsequently, entered into agreements with each one to purchase the necessary easements. This action was taken under the assumption that these purchases did not have to follow the Federal grant funding requirements, due to the City utilizing local funding to purchase them. Subsequently, easement agreements and deeds were approved and accepted by the City Council on June 2, 2020, after which, they were executed and recorded.
City Council Agenda
March 19, 2024
Subsequent to the acquisition of the easements the City was awarded a Federal earmark totaling $2.2 million. The funds are being routed through the Federal Highway Administration (FHWA) which requires all aspects of the project to follow FHWA guidelines. While the City was going through the final permitting procedures for releasing the construction funding, Caltrans notified the City that the easement procurements did not follow FHWA requirements. Even though the City utilized local funds to acquire the easements it used Federal grant funds for the engineering design. Therefore, unbeknownst to Staff at the time, if a project utilizes a single dollar of Federal funding on any aspect of a project, then the entire project is subject to FHWA guidelines, even if future phases of the project are funded with local funds. The City later received a letter from Caltrans listing a number of corrective actions to implement in order to comply with FHWA requirements. These actions include hiring a Caltrans -qualified consultant to perform right of way and property acquisition services, quitclaiming all previously acquired deeds and to restart the easement acquisition process from the beginning following FHWA requirements.
On May 17th, 2023, the City signed an agreement with Epic Land Solutions (ELS) to assist with the corrective actions under the City Administrator's administrative approval limit, following all Federal and State guidelines. ELS is a Caltrans -certified real property agent well -versed in FHWA requirements who is now assisting the City with all the necessary tasks related to the easement acquisition, including preparation of quitclaim deeds, appraisals and negotiations for new easements and acquisition services. All work is now being coordinated through Caltrans and in compliance with FHWA regulations.
ELS has since prepared quitclaim deeds for reverting the easements to the property owners and has begun the appraisal process for two of the properties under the assumption that the City had ownership rights through the Subdivision Map Act on the remaining three properties. After meeting with Caltrans' management, they informed the City that four out of five properties need to be negotiated and handled by outside 3rd party consultants. Amendment No.1 in the additional amount of $30,895 will provide additional funding to ELS to prepare two additional appraisals to meet Caltrans' ROW certification in accordance with the FHWA regulations. ELS's scope of work includes independent valuation, preparation of offer letters, preparation of appraisal reports, administration of settlements, and management and negotiation with the property owners.
FISCAL IMPACT:
The recommended actions will approve Amendment No. 1 to the Professional Services Agreement with Epic Land Solutions, Inc. increasing the contract amount by $30,895. A total of $2,446,099.16 is available in the project budget including the Federal Earmark of $2.2 million received for the project. As such, sufficient funds exist for the recommended actions.
Prepared by: Reviewed and approved:
Chris Tanio, P.E. Jerinifgr`(ampnian
Deputy Director of Public Works/City Engineer ,Directo(of Finance
City Council Agenda
March 19, 2024
Reviewed and approved:
Reviewed and approved:
Luis Estevez Damien R. Arrula
Deputy City Administrator
Attachment:
City Administrator
Amendment No. 1 to PSA with Epic Land Solutions, Inc.