2016 2:00:00 PM

Monday, September 26, 2016 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.11

Title: Consideration and possible approval of a Purchase Agreement (AC-5295) for a Temporary Construction Easement, Storm Drain Pipeline Easement, and Payment for a Temporary Right of Entry in the total amount of $549,845 for the North Truckee Drain Phase 3 Project (APN 034-172-18 and 034-172-19).

Petitioner/Presenter: John Martini, P.E., Community Services Director/Andrew Hummel, P.E., Utility Manager

Recommendation: Staff recommends that the City Council approve the Purchase Agreement and Right of Entry Payment for the North Truckee Drain Phase 3 Project (APN 034-172-18 and 034-172-19)

Financial Impact: $549,845 in Storm Drains Capital Fund 1641. $25,000,000 was approved for Project 16-6800 North Truckee Drain Relocation Phase 3 in the FY16 CIP and $24,920,304 of budget authority remains.

Total Costs: $549,845.00

Fund: Storm Drains Cap Proj Fund Account: 604130
Program: North Truckee Drain Phase 3 (16-6800)
Amount: $549,845.00 Budget Status: Budget Exists

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

Construction of the North Truckee Drain Phase 3 realignment project will require substantial acquisition of easements and right-of-way for both construction access and permanent facilities. The property owner associated with this item is affected by the project, and an offer totaling $549,845 for easements and right-of-entry was presented and accepted by the property owner. Approval of the purchase agreement and payment is being presented for consideration by City Council. Staff recommends approval.

Background:

In order to construct the North Truckee Drain Realignment project, numerous easements will be required to establish Temporary Construction Easements and Storm Drain Pipeline Easements. A total of 18 parcels are identified as having easement impacts, comprised of a minimum of 12 unique owners. To date, 15 of the easements associated with 10 of the owners have been acquired. On December 2, 2015, Warren and Schiffmacher provided an appraisal for the subject parcels of this agenda item, assessor’s parcel numbers 034-172-18 and 034-172-19.

Upon completion of the Appraisal, Review Appraisal, and several site visits and negotiation meetings with the owner of the parcels affected by this staff report the necessary documents were prepared. For this property, two (2) easements were acquired: a Temporary Construction Easement and a Storm Drain Pipeline Easement. A Temporary Right-of-Entry for Construction was also acquired.

Extensive negotiations with the property owner resulted in preparation of a Purchase Agreement for purchase of a Permanent Storm Drain Easement and a Temporary Construction Easement. Total reimbursement for the two easements, including value damages, was negotiated at $394,408 based on the appraised property value and updated comparable values provided by the Owner. To allow for project access, a Temporary Right-of-Entry for Construction was also negotiated with a value of $155,437. This value was determined based on the replacement cost of the paving in the area affected and the value of placing six (6) inches of asphalt grindings over the project area once complete, both to be provided by the owner. The values were independently confirmed by City staff.

Analysis:

The Easement areas required to construct and operate the North Truckee Drain project have been carefully considered to ensure project needs are met while reducing property impacts. Offer valuations for the temporary and storm drainage pipeline easements were determined using the Uniform Standards of Professional Appraisal Practice. Appraisal review was provided by Kimmel and Associates with no concerns noted.

Alternatives:

City Council could approve the Purchase Agreement and Payment as outlined by Staff.
City Council could reject the Purchase Agreement and Payment and provide direction to the City Manager.

Recommended Motion:

I move to approve the Purchase Agreement, Easements and Payment as outlined by Staff.

Attached Files: