Item Coversheet

Agenda Item - 5.b.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:William E. Murray
Dept.:City Manager 

Dept.: Public Works 
Subject:

Approval of purchase agreements for the acquisition of portions of 10965-10971 Westminster Avenue and 10872-10900 Westminster Avenue, Garden Grove, affected real properties for the Euclid Street and Westminster Avenue Intersection Improvement Project.  (Cost:  $529,000) (Action Item

Date:9/25/2018

OBJECTIVE

Authorize the City Manager to execute the right-of-way purchase agreements for the acquisition of affected real properties for Euclid Street and Westminster Avenue intersection improvement project.  The portions of the properties to be purchased by the City include approximately 2,676 SF of 10965-10971 Westminster Avenue (APNs: 099-362-20 & 21) currently owned by FJ Hanshaw Enterprises, Inc.; and approximately 3,190 SF of 10872-10900 Westminster Avenue (APNs:099-181-01, 59, & 60) currently owned by HMZ Retail, LP.
BACKGROUND

In August 2016, Orange County Transportation Authority (OCTA) issued a call for projects for Measure M2’s Comprehensive Transportation Funding Program (CTFP). CTFP is the mechanism by which OCTA administers competitive funding for streets and road projects, including the Intersection Capacity Enhancement Program, which funds capital improvements, such as the addition of through and/or turning lanes at qualifying intersections.  

 

City Council approved a Negative Declaration for the project on November 22, 2016, as recorded in Resolution No. 9395-16. A Notice of Determination was subsequently approved and recorded by the Orange County Recorder’s Office on November 29, 2016. 

 

OCTA granted the City right-of-way (ROW) acquisition funding under Agreement No. C-1-2764 with the effective starting date of July 1, 2017, in the amount of $784,326. The 25% local share (matching funds) will be drawn from the City’s gas tax funds.

DISCUSSION

Staff acquired the services of CPSI, a real property agent, who assisted the City in negotiating with the property owners.  They were able to negotiate the following amounts in consultation with staff:

 

Property Owner

Address

Total

FJ Hanshaw Enterprises, Inc.

10965-10971 Westminster Ave

$ 157,000

HMZ Retail, LP

10872-10900 Westminster Ave

$ 372,000

TOTAL_

$ 529,000

FINANCIAL IMPACT

There is no impact to the General Fund. The CTFP program provides 75% of the funding, or $402,750 for this project, and requires a 25% local match. City’s gas tax will be used to provide matching funds in the amount of $134,250.  

RECOMMENDATION

It is recommended that the City Council:

 

  • Approve the acquisition of portions of property located at 10965-10971 Westminster Avenue currently owned by FJ Hanshaw Enterprises, Inc., in the amount of $157,000; and 10872-10900 Westminster Avenue currently owned by HMZ Retail, LP, in the amount of $372,000; and

 

  • Authorize the City Manager to execute the real property purchase agreements on behalf of the City and make minor modifications as appropriate thereto.

  

 

By: Mike Santos, P.E.

      Associate Engineer




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
HMZ PURCHASE AGREEMENT9/11/2018Backup MaterialPurchase_Agreement_-_HMZ_Retail.pdf
HANSHAW ENTERPRISE 9/11/2018Backup MaterialPurchase_Agreement_-_FJ_Hanshaw_Enterprises.pdf