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SR-505-001-04 (15) e .- ~CitYOf Santa Moniea@ City Council Report City Council Meeting: August 8, 2006 Agenda Item: 1C To: Mayor and City Council From: Martin Kennerly, Acting Director Resource Management Department Subject: Colorado/Ocean Avenue Sewer Relief Project: Setting Date for Hearing to Consider a Resolution of Necessity to Acquire a Sewer Easement Recommended Action It is recommended that the Santa Monica City Council set a hearing date of September 26, 2006, to consider adoption of a Resolution of Necessity to acquire a sewer easement for the Colorado/Ocean Avenue Sewer Relief Project from Felcor Hotel Asset Company, LLC, for property located at 120 Colorado Boulevard, site of the Holiday Inn. Executive Summary The City is designing the Colorado/Ocean Avenue Sewer Relief project to serve the portion of the City located north of Colorado Avenue. The new sewer alignment crosses the Holiday Inn property, east of the hotel building, runs under the 1-10 freeway, ultimately connecting to the sewer main in Ocean Avenue. The City first presented a written offer in March 2006, and a revised offer in July 2006, to acquire the easement, but has not as yet received an acceptance or counter-offer. Acquisition of the easement may require that the City exercise its eminent domain authority. Staff requests that the City Council schedule a hearing for September 26, 2006, to consider adoption of a Resolution of Necessity and that in accordance with State Law, the property owner be 1 given a reasonable opportunity to appear and be heard. Following adoption of the Resolution, the City may file suit in Superior Court to obtain possession of the easement. Discussion An existing 30" diameter sewer main serves as the backbone to the City's northern sewage collection system, handling two-thirds of all wastewater flows from that section of the community. The sewer line originates at Colorado Avenue, runs under the western portion of the Holiday Inn site, just west of the hotel building (near the area of the swimming pool), under the 1-10 Freeway, crosses beneath the former Rand Corporation property and connects to a recently lined 39" diameter main under Ocean Avenue. This sewer line was damaged during the Northridge earthquake in 1994. After extensive analysis, the City determined that the best approach to meet the City's sewer needs, from both an engineering feasibility and cost-effectiveness standpoint, is to construct a new sewer main from Colorado Avenue, under the eastern portion of the Holiday Inn site, under the 1-10 Freeway and under the former Rand property, ultimately connecting to the sewer main under Ocean Avenue. Once the new eastern line is operational, the existing western main will be available for backup sewer services. The proposed location of the relief sewer requires the acquisition of an easement at 120 Colorado Avenue, the Holiday Inn site. The design of the easement is currently 2 underway and is proposed to be about 25 feet wide, approximately 83 feet in length, and approximately 30 feet below the surface. A portion of the proposed easement is located beneath an existing storm drain easement. The proposed easement is located under an area now used by the Holiday Inn for surface parking, just east of the existing hotel building. The City offered to acquire the easement from the property owner, but has received no response. Design of the easement is underway. Engineering staff proposes construction to begin in spring 2007. The City needs to secure possession to the easement before construction begins. If the easement cannot be acquired through negotiations, it may need to be acquired through the use of eminent domain. Prior to acquiring property through eminent domain, State law requires that the City conduct a hearing at which persons whose property is to be acquired by eminent domain have a reasonable opportunity to appear and be heard. After considering the testimony and other information, the Council may adopt a Resolution of Necessity to acquire the property through eminent domain. The Resolution of Necessity must be approved by two-thirds of all members of the City Council. After a Resolution is adopted, the City may file suit in the Superior Court to obtain possession of the easement. 3 Staff recommends that Council set September 26, 2006, as the date of the hearing to consider the Resolution of Necessity for acquisition of the sewer easement at 120 Colorado Avenue. Previous Council Actions On February 28, 2006, the City Council approved an agreement with Black & Veatch to design the project, and authorized staff to explore and negotiate the possible acquisition of a sewer easement. Environmental Analvsis The project is Categorically Exempt from CEQA and NEPA and a Notice of Exemption is expected to be filed by August 30, 2006, prior to Council consideration of the Resolution of Necessity. Public Outreach Notice of the hearing will be delivered by first class mail to the property owner at least 15 days prior to the date of hearing, as specified by State Law CCP 1245.350, and by certified mail, return receipt requested. BudaeVFinanciallmpact The Federal Emergency Management Agency provided funds for various upgrade projects throughout the City as a result of the 1994 Northridge Earthquake. If the City 4 takes steps to acquire the sewer easement through a negotiated purchase agreement or through eminent domain after adopting a Resolution of Necessity at the hearing on September 26, 2006, sufficient budgeted funds will be available for the acquisition of the sewer easement at Account E130873.555060. Prepared by: Miriam Mack, Economic Development Manager Approved: Forwarded to Council: Martin Kenne Iy Acting Director, Resource Mana Department Attachment: Map showing location of proposed Sewer Easement 5 .....~. ~ ""~~t-. ,(:?$J .O"t~~'~t ''';~~:>- ~.., ( , NOTE: REQUIRED EASEMENT IN ELEVA liON IS 25 FT HIGH 8ETVlEEN EL. 17.00 AND 42.00. 50' 40' 0 BO' 1""""'\....-- 160' 1"=80' ,.,..,..,. If1 o o I~ II ~f~1CH ... --... - FI GURE 1 COLOADO OCEAN RELIEF SENER REQUIRED 5E~ER EASE~ENT NITHIN HOLIDAY INN PRDPERTY 6