October 23, 2014
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MARTIN A. QUERIN, PE, Assistant Director
Department of Public Utilities - Water Division
BROCK D. BUCHE, PE, PLS, Supervising Professional Engineer
Department of Public Utilities - Water Division
SUBJECT
Title
CONTINUED HEARING to consider a Resolution of Public Use and Necessity for Acquisition of Permanent Utility Easements and Temporary Construction Easements from APNs 580-040-02S owned by Frances M. Ricchiuti and Patrick V. Ricchiuti, Co-Trustees of the Frances M. Ricchiuti Family Trust and Patrick V. Ricchiuti, Trustee, The Ricchiuti GST Nonexempt QTIP Trust; 580-020-20S and 580-020-22S owned by Leonard and Nicholas Verni; 580-050-01S owned by Patrick Vincent Ricchiuti, Trustee of the Patrick Vincent Ricchiuti Family Trust; and 580-020-21 and 580-020-23 owned by George C. Goshgarian, Kathleen A. Goshgarian, Michael Morales, Leonard Verni, Nicholas Verni, Steven G. Fogg Family Partnership, and Christopher T. Lum as Sole Trustee of the Steven C.Y. Lum and Catherine J. Lum Trust
(Continued from October 9, 2014)
1. *** RESOLUTION - That the Public Interest and Necessity Require and Authorize Eminent Domain for Acquisition of Permanent Utility Easements and Temporary Construction Easements from Real Property: APNs 580-040-02S, 580-020-20S, 580-020-22S, 580-050-01S, 580-020-21, 580-020-23, located in the County of Fresno (Fresno County) (Requires 5 Affirmative Votes)
Body
RECOMMENDATIONS
Staff recommends:
1. The Council conduct a public hearing to consider a resolution of public use and necessity for acquisition of permanent utility easements and temporary construction easements.
2. The Council adopt the attached Resolution which states that the public use and necessity require the permanent utility easements and temporary construction easements, and authorizes eminent domain action as provided by the California Code of Civil Procedure.
EXECUTIVE SUMMARY
The Department of Public Utilities, Water Division, is finalizing the design of the Friant-Kern Raw Water Pipeline to deliver raw water from the Friant-Kern Canal to the Northeast Surface Water Treatment Facility (NESWTF). The proposed alignment traverses private property in the most direct manner possible resulting in lower project costs and minimal impacts to the least number of property owners. With bidding scheduled to begin in early 2016 and negotiations between property owners at a stand-still, acquisition of easements by condemnation is now necessary.
BACKGROUND
Some acquisitions have already been made from surrounding property owners to accommodate the project needs. The acquisitions described below will provide the necessary permanent and temporary construction easements for the pipeline. It is necessary to commence the eminent domain action now so that possession of the required easements can be obtained and secured by the end of 2015. Staff recommends Council adopt the recommended Resolution of Public Use and Necessity which authorizes the City Attorney to initiate an eminent domain action and obtain an order of possession of the property. It requires five votes for approval and is subject to veto by the Mayor.
Presently, the City's contract with the United States Bureau of Reclamation (USBR) for Central Valley Project (CVP) surface water travels nearly 55 miles in open canals from Friant Dam (Millerton Lake) to the NESWTF. The proposed Project consists of the construction and operation of a 5.6-mile underground raw water pipeline. The new pipeline reroutes the CVP water directly to the NESWTF and will eliminate nearly 47 miles from the conveyance distance. The Project will enclose the water conveyance system and greatly reduce the threat to water quality in otherwise exposed canals, by contamination from environmental debris, and accidental or malicious acts. The pipeline will be constructed across numerous properties in unincorporated Fresno County and connected to the existing one-mile long segment of pipeline constructed by a 2007 project.
Each of the acquisitions was appraised by independent, professional real estate appraiser Pete S. Cooper, MAI. The value of purchasing or relocating landscaping, fencing, paving, and other improvements was part of the offers to owners. Each property owner was given a written offer which included the value of the permanent and temporary construction easement, as applicable. Each owner was advised of its right to obtain an independent appraisal at the City's cost, up to $5,000. Staff has met with the owners or their representatives to explain the project and acquisition process further. A summary for each parcel is provided as follows:
Resolution Parcel Numbers |
APNs |
Owner(s) |
Value of Permanent Easement |
Value of Temporary Easement |
1 (Pipeline and TCE) |
580-020-20S & 580-020-22S |
Leonard Verni, Nicholas Verni |
$21,600 (3.01 ac.) |
$9,925 annually (5.92 ac.) |
2 (Pipeline and TCE) |
580-050-01S |
Patrick Vincent Ricchiuti, Trustee, the Patrick Vincent Ricchiuti Family Trust |
$36,700 (0.33 ac.) |
$22,600 (Year One, includes cost to cure - vineyard replacement) $9,600 (subsequent years) (0.55 ac.) |
3 (Pipeline and TCE) |
580-020-21 & 580-020-23 (Access Road) |
George C. Goshgarian; Kathleen A. Goshgarian (Kathleen A. Gregory); Michael Morales; Leonard Verni; Nicholas Verni; Steven G. Fogg Family Partnership, a Limited Partnership; Christopher T. Lum as sole trustee of the the Steven C.Y. Lum and Catherine J. Lum Trust |
$29,600 (5.91 ac.) |
$120 annually (0.06 ac.) |
4 (TCE only) |
580-040-02S |
Frances M. Ricchiuti & Patrick V. Ricchiuti, Co-Trustees, The Frances M. Ricchiuti Family Trust, Trust B; Patrick V. Ricchiuti, Trustee, The Ricchiuti GST Nonexempt QTIP Trust |
N/A |
$550 annually (0.24 ac.) |
Parcel 1 - Verni
City has spoken with the Vernis on several occasions regarding the City's offer to purchase easements and rent temporary construction easements for the Project. The Vernis have indicated that the City's appraisal is too low and that they plan to obtain an appraisal to support their position; however, they have not yet provided an appraisal. They have not hired legal counsel to City's knowledge. The appraisal summary and offer documents have been sent to the Vernis and follow-up contacts in person, by telephone, and fax have been made. The Vernis have not accepted or rejected the City's offer. There does not appear to be any opposition to the Project, compensation is the only matter in question.
Parcel 2 - Patrick Vincent Ricchiuti Family Trust
City has spoken with Mr. Ricchiuti many times regarding the City's offer to purchase permanent and temporary construction easements. Mr. Ricchiuti has not stated his position regarding the City's offer, or whether he plans to obtain an independent appraisal. Mr. Ricchiuti has retained a local attorney to represent him. The appraisal summary and offer documents have been sent to Mr. Ricchiuti and his attorney and follow up contacts have been made in person, by telephone, and email. Mr. Ricchiuti has not accepted or rejected the City's offer. There does not appear to be any opposition to the Project.
Parcel 3 - Road Parcel - Goshgarian, Morales, Verni, Fogg, Lum
The subject properties are a roadway providing access to adjoining properties and are owned by seven owners, three of which have already accepted the City's offer. The remaining owners are George Goshgarian (offer portion: $462.50), Kathleen Gregory (offer portion: $462.60), Leonard Verni (offer portion: $7,400), Nicholas Verni (offer portion: $7,400), plus a nominal portion of $120/year rent for a temporary construction easement. The City has spoken with the various owners many times regarding the City's offer to purchase. The Vernis have indicated that the City's appraisal is too low and they may obtain an independent appraisal, however, they have not yet done so. Mr. Goshgarian and Ms. Gregory desire to transfer their interest to another owner, to whom they have previously sold adjacent property, but neglected to include the roadway access. This transaction has not yet taken place. None of the owners are represented by counsel. Owners have been provided with the appraisal summary and offer documents, and follow up-contacts have been made in person, by telephone, email, and fax.
Parcel 4 - Frances M. Ricchiuti Family Trust; Ricchiuti GST Nonexempt QTIP Trust
City has spoken to Mr. Ricchiuti multiple times regarding rental of the temporary construction easement. He has not accepted or rejected the City's offer, has not stated an opinion as to the amount the City is offering, or whether he plans to obtain an independent appraisal. Mr. Ricchiuti is represented by a local attorney. There does not appear to be any opposition to the Project.
Pursuant to the California Code of Civil Procedure, notices were sent to the property owners appearing on the current tax assessment roll and to other representatives of the owners with whom staff has communicated. The property owners were invited to appear at the hearing and were asked to contact staff if they wished to speak at the hearing.
It is recommended that the Council adopt the attached Resolution of Public Use and Necessity with consideration of the following:
1. The public interest and necessity require the proposed project.
The raw water pipeline is needed to deliver better quality water to the NESWTF. The pipeline provides a more reliable source of water to treat for potable water use.
2. The proposed project is planned in a manner that will be most compatible with the greatest public good and the least private injury.
The pipeline will be located primarily on private property and away from houses and traffic thus reducing the concern of safety to the general public. Several alternative alignments were evaluated during design and the proposed alignment was selected to best minimize impacts.
3. The property is necessary for the proposed project.
The rural nature of this pipeline alignment makes it very difficult to follow existing roads and would result in much higher overall project costs. The proposed alignment traverses private property in the most direct manner possible resulting in lower project costs and minimal impacts to the least number of property owners.
4. An offer to purchase the required utility easement has been made pursuant to Section 7267.2 of the Government Code.
A written offer of the appraised fair market value has been delivered to each owner of affected property pursuant to the requirements of the California Government Code.
ENVIRONMENTAL FINDINGS
An initial study and Mitigated Negative Declaration was prepared and adopted on June 14, 2012 for this project. A Notice of Determination was subsequently filed with the Fresno County Clerk's Office on June 19, 2012. The City of Fresno Raw Water Pipeline Project Initial Study was done in August of 2011, and analyzed both the proposed and alternative pipeline alignments. This approval is to implement that project.
An analysis has been performed pursuant to CEQA Guidelines ยง15162 to determine whether subsequent environmental review is required for the project. Based upon this analysis the following findings are made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the project which will require major revisions of the previous Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case there are no changes to the project.
2. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case, the proposed pipeline alignment has not changed.
3. There is no new information, which was not known and could not have been known at the time of the previous Mitigated Negative Declaration that the project will have significant effect not discussed in the Mitigated Negative Declaration.
Based upon these findings, it has been determined that no further environmental documentation is required for this project.
The City has also been working with several Federal agencies to meet the requirements of the National Environmental Policy Act (NEPA). Work is ongoing with the United States Fish and Wildlife Service (USFWS) and the Army Corp of Engineers to approve the Biological Opinion (BO) and the effect of this Project has on endangered plants and wildlife. When the USFWS approves the BO and endangered species mitigations, they will then be submitted to the USBR for their review and acceptance. Once accepted, the USBR will issue a Finding of No Significant Impact (FONSI) and give authorization for the City to begin construction on the Friant-Kern Canal Project.
In a parallel effort, the City has been working with several State regulatory agencies to secure necessary permits and mitigation measures. This will include working with the California Department of Fish and Wildlife (CDFW) to gain approval of their 2081 Permit (Incidental Take Permit), and protected species mitigations.
LOCAL PREFERENCE
Local Preference was not considered because this action does not include a bid or an award of a City construction contract.
FISCAL IMPACT
Approving this Resolution of Necessity will not impact the General Fund. Appropriations for the ultimate acquisition of these easements are included in Water Division's FY2015 Capital Improvement Program budget within the 2010 Water Revenue Bonds A-1 Fund (40118). Project construction is expected to start in 2016.
Attachments:
Resolution of Public Use and Necessity
Easement Location Map