Discussion and possible action on any and all matters regarding a budget transfer to cover the cost of the land acquisition for the downtown drainage property. (Jenny Torres, Acting City Manager)

On November 8, 2023, the San Luis City Council approved the authorization to acquire downtown property for the construction of a new storm water retention basin and storm water collection system. The approval included a budget transfer to cover the cost of the purchase of the property. Unfortunately, the City was not able to acquire the property during Fiscal Year 23-24. The City opted to start the condemnation process, which costs approximately $60,000-$80,000 and can last up to a year. The City did not allocate funding in the 2024-2025 fiscal year as it expected that the process would take us into the 2025-2026 fiscal year. The property owners decided to negotiate with the City and have agreed to settle. Based on the recommendation by the consultant, the brokers' statement regarding land value, and cost and time to pursue a condemnation, it is recommended that the City accepts the counteroffer. 

The administration is requesting authorization to make a budget transfer from the match allocated for the CDBG SSP Merrill Avenue Phase II project. The City expects a decision on the application to be made at the end of the year. The construction would not start until April and the match would be needed at the end of the construction, thereby allowing the funding to be allocated in next fiscal year's budget.  

The project consists of purchasing four vacant commercial properties located on C Street and 2nd Avenue, totaling 46,080 square feet of 1.06 acres. The City of San Luis developed the downtown drainage master-plan to assess the efficiency of the existing storm water drainage infrastructure downtown and determine the effects of the increased urban density on storm water runoff and additional infrastructure needed to accommodate such increased urban density.