W.O. 04-12 will relocate Alkali Creek to the north, reconstruct the north slopes, construct wider shoulders along the Alkali Creek Roadway, and resurface Alkali Creek Road between the BBWA siphon crossing and an area near Aronson Avenue. To complete these tasks, it is necessary to purchase easements from Morningside Homes within their common area along Alkali Creek Road. The Appraisal Group (Steve Repac) has completed an appraisal on the property, and an offer letter was presented to Morningside Homes on December 17, 2009. 

To meet one of the permit requirements, all clearing and grubbing must be completed by May 15, 2010, so work must begin no later than May 1, 2010. Also, ARRA (American Recovery & Reinvestment Act) funds are designated for this project and must be spent by September 30, 2010. To meet these deadlines, it is necessary to acquire the easements or obtain right of entry as soon as possible. City Staff is continuing to work with the property owners to negotiate the necessary easements.  Approval of the Resolution authorizing condemnation allows the pursuit of right of entry as negotiations continue or if negotiations reach an impasse. 

The Council may:

• Approve Resolution authorizing condemnation of portions of Morningside Homes common area; or
• Do not approve resolution authorizing condemnation of portions of Morningside Homes common area.

Final value will be set through the negotiation and agreement of the easements or through the condemnation process. The value determined from the appraisal for an easement and offered to the property owner is $121,110.57. The determination of value is shown in the attached offer letter. The project is being funded with ARRA funds ($1,650,688) and City contributions from Storm Water and Arterial fees.

Refer to Attachment C, a chronological summary of the project from the summer of 2007 to December 30, 2009.

PROCEDURAL HISTORY

If the resolution authorizing condemnation of portions of the Morningside Homes common area is approved and negotiations come to an impasse, City staff will proceed with condemnation. If negotiations are successfull, the respective Right-of-Way Agreement and Right-Of-Way Easements will be presented to Council as soon as the documents are properly prepared, likely on January 25 or February 8.  The project is targeted to bid the end of March, 2010, begin construction at the end of April, and complete by the end of July.

ALTERNATIVES ANALYSIS

Approve resolution authorizing condemnation of portions of Morningside Homes common area, totaling approximately 3.4 acres. Under this option, City Staff would proceed with the condemnation process if negotiations are not successful.

Do not approve resolution authorizing condemnation of portions of Morningside Homes common area. Under this option, if negotiations not successful, the project will be delayed, increasing the risk of failure of Alkali Creek Road and potentially losing over $1.6 million in ARRA funds.