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Item 4H MemoCITY OF SOUTH LAKE Item 4H MEMORANDUM (February 1, 2022) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Authorize the purchase of a right-of-way with Guan and May Tan for the Pearson, Union Church, and Dove Road water system improvements in an amount not to exceed $52,292. Action Requested: Authorize the purchase of a right-of-way with Guan and May Tan for the Pearson, Union Church, and Dove Road water system improvements in an amount not to exceed $52,292. Background Information: Financial Considerations: The purpose of this project is to install a new 12-inch water main along S. Pearson Lane and Union Church Road, to complete missing segments within the system and to upsize the remaining 6- inch water main segment along E. Dove Road to a 12-inch main. This project will improve system flow and redundancy in the project areas. In addition, missing sidewalk segments will be installed in the project areas. This project is the result of the Southlake 2012 Water Master Plan project 16 and as a Tier 1 segment in the revised Sidewalk Priority Projects list of the Mobility Plan. The purchase of a 4,747 square foot right-of-way will assist in upsizing approximately 189 feet of 6-inch water to a 12-inch water main and 6-foot sidewalk along 875 E. Dove Road. The initial appraised value of $52,292 was offered and subsequently approved by Mr. and Mrs. Tan on December 17, 2021 as summarized below. As included in the appraisal, the approved amount also specifies the cost of existing site improvements within the proposed easement. Appraisal Specifics Amount Right -of -Way Easement $ 45,916.00 Site Improvements $ 6,376.00 Total Purchase $ 52,292.00 Funding for purchase of the right-of-way and site improvements is available via the approved Capital Improvement Program. Expenditures will not exceed approved budgeted funds. Page 1 of 2 Item 4H Strategic Link: This item links to the City's Strategy Map strategic focus areas of Mobility, Infrastructure, and Quality Development. It specifically relates to the City's Corporate Objectives, C2: Provide Travel Convenience Within City & Region, B6: Optimize Use Of Technology, and F2: Invest to Provide & Maintain High Quality Public Assets. The Critical Business Outcomes are, CB02: Enhance Mobility Though Aggressive Traffic Management Initiatives And Capital Project Implementation, and C1305: Improve Quality Of Life Through Progressive Implementation Of Southlake's Comprehensive Plan Recommendations. Citizen Input/ Board Review: None. Legal Review: None. Alternatives: The City Council may approve or deny the request. Supporting Documents: Attachment A: Tan Offer Letter Staff Recommendation: Authorize the purchase of a right-of-way with Guan and May Tan for the Pearson, Union Church, and Dove Road water system improvements in an amount not to exceed $52,292. Staff Contact: Rob Cohen, Director of Public Works Kevin Ferrer, P.E., Deputy City Engineer Jeff Ginn, P.E., Civil Engineer Page 2 of 2 Attachment A u �► 3010 LBJ Freeway, Suite 1490 �►� � 12830 Willow Centre Dr., Suite A Dallas, Texas 75234 4= Z0, Houston, TX 77066 DBE/WBE(HUB 99 Regency Parkway, Suite 105 st at e s i d e 6276 West Adams Ave. Mansfield, Texas 76063 Right of Way Services Temple, Texas 76502 Consultant to the City of Southlake, Texas September 24, 2021 Guan Chuan Tan and May Tan, husband and wife CERTIFIED MAIL RETURN RECEIPT 1206 Golden Gate Drive Southlake, TX 76092 RE: INITIAL OFFER LETTER Parcel No.: 8 Project: City of Southlake, Water Distribution System Improvements S. Pearson Lane, Union Church Road, E. Dove Road Situs Address: 875 E. Dove Road, Southlake, Tarrant County, TX 76092 Dear Mr. and Mrs. Tan: In acquiring property for infrastructure projects, the City of Southlake (City) follows a definite procedure for appraising the real property needed and for handling personal negotiations with each owner. As has been or will be explained by the City's representative, Shawn Jackson of Stateside Right of Way Services (Stateside), the City would like to acquire a utility easement on your property located at 875 E. Dove Road, Southlake, Tarrant County, TX 76092 for the Water Distribution System Improvements - S. Pearson Lane, Union Church Road, E. Dove Road Project. We believe at this stage of the purchase process it is mutually beneficial to confirm that, based on an appraisal prepared by O'Brien Realty Advisors, LLC, the City is offering you $52,292.00 (Fifty -Two Thousand Two Hundred Ninety -Two and NO/100 Dollars) for your property. This amount is the total amount of just compensation for all interests in the portion of your property to be acquired, as determined in accordance with State law, subject to clear title being conveyed to the City. This offer does not include any damages to the remainder of the property. In accordance with State law, it is the policy of the City to negotiate with the fee owner(s) of the real property with the understanding that you will, in turn, negotiate with any lessee or other party who may own any interest in the land or improvements, with the exception of public utility easements, which will be handled separately by the City. This offer is subject to the approval of the City Council and may be withdrawn or terminated by the City if not approved by the City Council. If you wish to accept this offer, please contact Shawn Jackson as soon as possible at (817) 521-0125, so that the process of issuing your payment may be started. If you are not willing to accept this offer, you may submit a written request for administrative settlement/counteroffer, setting forth a counteroffer amount and the basis for such amount, provided such settlement request is received in writing within thirty (30) days from the date of this letter. Please note that your opportunity to submit an administrative settlement shall be forfeited if such a settlement request is not received by the City within the thirty (30) day deadline. Please also note that the City has the right to withdraw or modify this offer at any time prior to your acceptance. Upon acceptance of this offer and payment of the purchase price, you will be reimbursed for any fair and Parcel No. 8 - City of Southlake — Water Distribution System Improvements - S. Pearson Lane, Union Church Road, E. Dove Road Page 1 of 2 reasonable incidental expenses necessarily incurred in transferring title to the property for use by the City. Expenses eligible for reimbursement may include (1) recording fees, transfer taxes and similar expenses incidental to conveying the real property to the City and (2) penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering the real property. Voluntary unnecessary expenses or expenses incurred in clearing questionable title will not be eligible for reimbursement. Eligible incidental expenses will be reimbursed upon submission of a claim supported by receipted bills or other evidence of actual expenses incurred. You may file a written request for review if you believe that the City failed to properly determine the eligibility for, or the amount of, incidental expenses to be reimbursed. There is no standard form on which to request a review of a claim; however, the claim must be filed with this office within six months after you are notified of the City's determination on any claim for reimbursement. You have the right to discuss with others any offer or agreement regarding the City's acquisition of the subject property, or you may (but are not required to) keep the offer or agreement confidential from others, subject to the provisions of Chapter 552, Government Code (the Public Records Act) as it may apply to the City. We respectfully request the opportunity to meet with you to answer any questions you may have regarding the details of the type of facility to be built, the City's offer, or the proposed purchase transaction. Also, please do not hesitate to contact me at the telephone number provided above regarding any questions you may have. Enclosed you will find a copy of the State of Texas Landowner's Bill of Rights, Appraisal Report(s), Information About Brokerage Services, a Memorandum of Agreement, Acknowledgement of Receipt and a W-9 form. We ask that you sign and return the Acknowledgement of Receipt as soon as possible. A self-addressed, stamped envelope has been included for your convenience. If you would like to accept the City's offer, please also sign the enclosed Right -of -Way Dedication Instrument and W-9 form and return along with the Acknowledgement of Receipt in the envelope provided. Please note we have enclosed copies of all appraisal reports relating to your property being acquired which were prepared in the ten (10) years preceding the date of this offer and produced or acquired by the City, including the appraisal on which this offer is based. Sincerely, C`v Shawn Jackson Project Manager Stateside Right of Way Services Imo►[eiL01ffN abi • Acknowledgment of Receipt • Right -Of -Way Dedication Instrument • State of Texas Landowner's Bill of Rights • Appraisal Report Completed by Jason D. Pace, Mike C. O'Brien and Gina Cannova Phalen O'Brien Realty Advisors, effective July 20, 2021 • Title Commitment effective July 25, 2021 and Title Curative Letter • W-9 • Self -Addressed Stamped Envelope Parcel No. 8 - City of Southlake — Water Distribution System Improvements - S. Pearson Lane, Union Church Road, E. Dove Road Page 2 of 2