Consideration and Approval of a Relocation Benefit: Approve payment of claim for a warehouse freezer for Kelly and Liberty Hanson as a result of being displaced by the Lone Tree Overpass Project

The City would pay a claim for funds for the purchase, delivery, and assembly of a warehouse freezer, as a relocation benefit being provided to Kelly and Liberty A Hanson ("Hanson"). The Hansons operate an ice storage and distribution company on the parcel APN 104-01-097D on which the City received an order of immediate possession. Federal Regulations CFR 24-301(g)(16)(i)(i) provide for the cost of a substitute item, including installation costs of the replacement site, minus any proceeds from the sale or trade-in of the replaced item. The Hansons have found a new site to maintain business operations on, but it is not feasible to relocate the existing warehouse freezer. The new freezer specifications have been approved by the Hansons as satisfactory to meet their needs.
 
The City retained its general contractor for the Lone Tree Overpass Project, Ames Construction Company ("Ames"), to acquire property and to help provide relocation benefits to residents and businesses displaced by the project. The determinations of benefits are being conducted pursuant to the standards set forth in the federal Uniform Relocation Assistance and Real Property Acquisition Act of 1970 ("the Uniform Relocation Act"). Federal regulations are found in 49 Code of Federal Regulations Part 24.
 
Consultant Engineering Inc., the relocation contractor working for Ames, conducted an open, competitive search of both new and used freezers and selected the quote that was responsible and responsive, and most advantageous to the City.

The proposed vendor had the most competitive pricing for a freezer that meets the Hanson's needs. City will issue a check to Hansons, who will be responsible for purchase.

The City will pay a claim for funds to purchase the warehouse freezer at a cost not to exceed $368,000, to include shipping and installation. 

The claim for $368,000 does not include:

• Electrical connections and site prep.

The Lone Tree Overpass Project is funded by a .23% local transaction privilege tax (TPT) approved by the voters. Relocation benefits are being paid for from the project budget. The Lone Tree Overpass Project is currently budgeted in FY2023-2024 in the amount of $30,573,259 in the Transportation Fund, Account Number 047-10-112-3054-6.

Priority Based Budget Key Community Priorities and Objectives
Safe and Healthy Community -

• Foster a safe, secure, and healthy community.
• Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.

Inclusive and Engaged Community -

• Advance social equity and social justice in Flagstaff.

Sustainable, Innovative Infrastructure -

• Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
• Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs.
• Identify smart traffic management, multi modal transportation, and alternative energy opportunities.

Environmental Stewardship -

• Implement sustainable building practices and alternative energy and transportation options.
• Implement, maintain and further the Climate Action and Adaptation Plan.

Regional Plan

• Improve transportation safety and efficiency for all modes.

The Lone Tree Overpass has been a planned project for over a decade in the Flagstaff community. The Lone Tree Corridor and Overpass will connect the southern area of town with the Route 66 corridor and provides a option that reduces congestion on other roadway corridors.
 
In November 2018, the Flagstaff voters approved a ballot measure to fund the Overpass (Proposition
420) and a separate ballot measure to fund the Corridor Improvements (Proposition 419). Both propositions passed.
 
On February 2, 2021, City Council awarded a Design-Build Services Agreement for Phase I of the project development to Ames Construction. As part of the contract, Ames is to assist with providing relocation benefits for displaced persons. 
 
On July 6, 2021, Council passed Ordinance No. 2021-15, authorizing acquisition of real property for the Project.
 
On October 5, 2021 the City Council adopted Resolution No. 2021-45 delegating authority to Ames to approve Determination of Benefits for relocations under the Uniform Relocation Act, for the LTO Project. Per the resolution, any contract exceeding $50,000 is to be presented to Council for consideration.

1. Approve contract for purchase of the warehouse freezer.  This action will help expedite establishment of the Hanson's business on their new site and help enable the LTO Project to proceed. 
2. Do not approve contract for purchase of warehouse freezer, and direct staff to delay purchase or take other action.

The City has already started construction of the LTO Project and needs to relocate the Hanson business out of the path of the project. The City has agreed to provide relocation benefits to the Hansons, and one of the benefits consists of a new warehouse freezer. The Hansons have agreed to accept the new warehouse freezer as part of those benefits.

The Lone Tree Overpass will provide a new roadway corridor and bridge over the BNSF Railway.

The community was consulted extensively in development of both the Overpass concept study and the Corridor Study in the late 2000s. The City conducted public outreach to inform the public about Proposition 419 and 420. The Flagstaff voters approved these propositions. At City Council meetings in 2021, 2022, and 2023 the project design has been discussed and/or presented. As part of its contract, Ames is required to conduct public participation meetings, neighborhood outreach, development of a website to provide information, project renderings to improve understanding of the proposed project elements, and general public coordination throughout the design and construction of the project