20A - AA AND AGMT FOR PROPERTY ACQUISITION FOR WARNR

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Real Property Purchase Agreement - Warner Avenue Improvements, Phase 2 February 4, 2020 Page 2 the Warner Avenue Improvements project, bounded by Oak Street and Grand Avenue. Construction is anticipated to begin in winter 2020. The recommended property acquisition is necessary to accommodate the street improvements for Phase 2 (Exhibit 1). The purchase offers were determined based on the appraised value prepared by a California State licensed appraiser and accepted by the property owner. The compensation amounts listed above are incorporated in the attached agreement (Exhibit 2). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). ENVIRONMENTAL IMPACT On September 1, 2015, City Council approved the Warner Avenue Final Environmental Impact Statement (SCH No. 2012101004). FISCAL IMPACT A grant award of $10,560,000 in Orange County Transportation Authority (OCTA) Measure M2 Arterial Capacity Enhancements (ACE) funding for Warner Avenue Improvement Project right-of- way activities was recognized in the Fiscal Year 2018-19 Capital Improvement Program. Due to OCTA Board action in May 2019, all M2 payments to the City have been suspended until City regains M2 eligibility. Subsequently, the budget appropriation for this project was not carried forward to the City's Fiscal Year 2019-20 Budget. City staff wishes to proceed with project delivery, as pending M2 funds will be reimbursed to City once compliance with the Maintenance of Effort requirements are accepted by OCTA, with anticipated renewal in early 2020. Therefore, the requested Appropriation Adjustment (Recommended Action No. 1) will reappropriate $371,250 of the grant award to provide sufficient funding to complete this property purchase. If the City does not receive the Measure M2 funding as expected, this project will be backfilled with an alternative funding source. Approval of the requested Appropriation Adjustment will recognize $371,250 in the Measure M- Street Construction Fund, Measure M2 Competitive revenue account (No. 03217002-52332) and appropriate the same amount into the Measure M-Street Construction Fund, Measure M2 Competitive Street, Land expenditure account (No. 03217663-66100). With $123,750 from the City of Tustin contribution already budgeted in the Warner Avenue Improvements Project (No. 18-6901), 20A-2