City Hall East (213) 978-8100Tel 200 N. Main Street (213) 978-8312 Fax Room 701 [email protected] Los Angeles, CA 90012 www.lacity.org/atty CARMEN A. TRUTANICH City Attorney REPORT NO. R 1 1 - 0 2 0 3 MAY 3 1 2011 REPORT RE: DRAFT RESOLUTION OF NECESSITY FINDING THAT THE PUBLIC INTEREST AND NECESSITY REQUIRES THE ACQUISITION OF EASEMENT INTERESTS IN REAL PROPERTY LOCATED AT 5601-5627 SEPULVEDA BOULEVARD FOR THE CONSTRUCTION OF THE SEPULVEDA BOULEVARD AT BURBANK BOULEVARD INTERSECTION IMPROVEMENT PROJECT R/W E6000868 COUNCIL DISTRICT NO. 2 NOTICE AND OPPORTUNITY TO BE HEARD REQUIRED The Honorable City Council of the City of Los Angeles Room 395, City Hall 200 North Spring Street Los Angeles, California 90012 Honorable Members: Pursuant to the request of the Bureau of Engineering, this Office transmits, approved as to form and legality, three copies of a Resolution of Necessity (Ordinance) authorizing the condemnation of real property located at 5601-5627 Sepulveda Boulevard (APN Nos. 2243-002-012 and -008) (Subject Property) in Van Nuys for the Sepulveda Boulevard at Burbank Boulevard Intersection Improvement Project (Project). The draft Ordinance is attached as Exhibit A This Project will be located at the intersection of Sepulveda Boulevard and Burbank Boulevard in Van Nuys near the on-ramp to the northbound San Diego Freeway (1-405). This area is located in Council District 2 (Krekorian). The Honorable City Council of the City of Los Angeles Page2 Acquisition of the Subject Property by this condemnation will allow for the widening of a portion of both Sepulveda and Burbank Boulevards so another right hand turn lane can be installed which will feed into the on-ramp for the northbound San Diego Freeway. Project Description During the rush hours and at other times of high traffic volume, access to the northbound San Diego Freeway on-ramp at the intersection of Sepulveda and Burbank Boulevards becomes very congested. This is because there is only one dedicated right hand turn and one through/right turn access lane to the northbound on-ramp. Traffic entering that intersection wishing to proceed north on the San Diego (1-405) Freeway becomes "bottlenecked" because of insufficient access. The Project will widen the west side of Sepulveda Boulevard by 15 feet for approximately 315 feet from the intersection centerline and widen the north side of Burbank Boulevard by 12 feet for approximately 300 feet from the intersection centerline. Other improvements will include construction of a concrete curb, gutter and sidewalk, AC pavement, a retaining wall, landscaping and trees, streetlights and traffic signals. This Project will relieve peak hour congestion for southbound traffic along Sepulveda Boulevard by providing dedicated right-turn lanes. It will also improve mobility for the westbound traffic along Burbank Boulevard by providing for two additional right turn only lanes onto the northbound San Diego Freeway. A copy of the Right-of-Way map which shows the "footprint" of the Project and the property interests to be acquired is attached as Exhibit B. Negotiations with the Owner The City has negotiated with the owner and tenant on the Subject Property. The last offer made by the City was for $349,000 (rounded) on May 6, 2010. The $349,000 offer was for the following: $250,000 for a permanent easement, $13,000 for a temporary construction easement, and $85,900 as compensation for certain affected improvements on the subject property including landscaping, signage relocation, fencing, parking bumpers, pipe bollards and portions of the sidewalk and parking area. The impacted property has a total square footage of approximately 72,322 square feet. The City requires only 3,582 square feet along the Sepulveda frontage for a permanent easement and 2,266 square feet along the Burbank frontage. The current business operating on the property, the Continental Coin Company will not be significantly affected, with the exception of the need for the City to reposition two electronic business signs from their present locations to elsewhere on the property. The property owner has rejected the City's offer and seeks payment which is approximately 2 Y. times the amount of the City's last offer even though the City intends The Honorable City Council of the City of Los Angeles Page 3 to only acquire the relatively small areas required to install another turning lane feeding into the 1-405 freeway on-ramp. Environmental Compliance On March 28, 2002, the City Engineer reviewed the Project following the requirements of the California Environmental Quality Act (CEQA) and determined that the Project qualifies for a Categorical Exemption under State CEQA Guidelines Section 153001 and City CEQA Guidelines, Artide Ill, Sec. 1.a. (20), in that the Project involves the minor alteration of an existing public roadway/facility and involves only negligible or no expansion of use beyond that which currently exists. In April, 2003, City staff completed a Preliminary Environmental Study (PES). Based on that study, in August 23, 2006, Caltrans concluded that the Project qualifies for a Programmatic Categorical Exclusion under the National Environmental Policy Act (NEPA). A copy of the Categorical Exclusion/Programmatic Exemption form is attached as Exhibit C. Caltrans re-validated that conclusion on July 28, 2010. On November 30, 2010, City staff re-evaluated the Project and confirmed the validity of the earlier CEQA determination. We recommend that, prior to adoption of the Ordinance, you determine that your action is exempt from the CEQA under State CEQA Guidelines Section 153001, and City CEQA Guidelines, Article Ill, Sec. 1.a. (20), and direct staff to file the Notice of Exemption attached hereto as Exhibit D. Consistency with General Plan Pursuant to City Charter Section 559, on January 26, 2009, the Director of Planning determined that the proposed Project is in conformance with the purposes, intent and provisions of the Van Nuys-North Sherman Oaks Community Plan, an element of the General Plan. The finding appears to be based on the fact that the street widening for the access road to the San Diego Freeway northbound on-ramp at Burbank Boulevard will not cause any adverse impacts on the Community Plan. The Council may comply with Charter Section 556 by adopting the findings of the Director of Planning or by making its own findings. A copy of the Planning Department's January 26, 2009 memo, is attached as Exhibit E. Notice and Opportunity to be Heard The draft Ordinance provides that the owner(s) of the Subject Property to be acquired, or those with interests in any easements and/or leaseholds on the Subject Property, be given notice of the Council's intention to adopt the Ordinance and that they be provided with an opportunity for a hearing before Council, all as required by Code of Civil Procedure Section 1245.235. Pursuant to that section, it is necessary that the The Honorable City Council of the City of Los Angeles Page4 Council set a date for the hearing and that the Clerk give notice of the hearing date, which is not less than 15 days after notice is sent to the owner and other interested persons. If the owner(s), or their representative, appear and desire to be heard, the Council shall permit the hearing. This Office further recommends that it be given the authority to make a deposit of probable just compensation in an amount of $349,000, or such other reasonable amount as may be determined by any updated appraisals and market research for the affected parcels and improvements, which deposit will be obtained from the City's Department of Transportation Fund 655, Account No. 747, Department No. 94. Recommended Action In accordance with the above, this Office recommends that the Council take the following actions, after it conducts the public hearing: 1. Find that approval of the draft condemnation Ordinance is exempt from additional environmental review under CEQA and State CEQA Guidelines 15162, for the reasons set forth in this report; 2. Direct staff to take all actions necessary to authorize payment for these acquisitions from Fund 655, Account No. 747, Department 94 as described above; 3. Authorize this Office to make the necessary deposit of probable just compensation in the amount of $349,000 and seek orders from the Court to obtain possession of the Subject Property prior to trial; 4. Authorize the Bureau of Engineering's Real Estate Division to continue to attempt to acquire the property, and all interests in the property, via negotiated purchases, and if successful, to execute all documents necessary to accomplish the transfer of those interests to the City; and The Honorable City Council of the City of Los Angeles Page 5 5. Adopt the draft Resolution of Necessity (Ordinance) authorizing the acquisition of the Subject Parcels by condemnation. If you have any questions regarding this matter, please contact Deputy City Attorney John A Minor at (213) 978-8255. He or another member of this Office will be present when you consider this matter to answer any questions you may have. Very truly yours, CARMEN A TRUTANICH, City Attorney By JO N A MINOR Del), ty City Attorney JAM:zra Transmittal Attachments: Proposed Ordinance (3 copies) Right of Way Map (3 copies) Categorical Exemption Notice of Exemption M:\Real Prop_Env_Land Use\Rea! Property_Envlronment\John Minor\Burbank Sepulveda Improvement Pro)ect\Report to Councl! Re Sepulveda and Burbank Intersection Improvement Project.doc EXHIBIT A ORDINANCE NO. ______ An Ordinance of the City of Los Angeles finding that the public interest and necessity require the "Sepulveda Boulevard and Burbank Boulevard Widening Project, and the acquisition of property therefor. (Work Order No. E6000868, Right of Way No.