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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 21, 2020 <br />TITLE <br />APPROVE AN APPROPRIATION <br />ADJUSTMENT AND AUTHORIZE <br />AGREEMENT FOR TENANT GOODWILL <br />COMPENSATION FOR BRISTOL STREET <br />IMPROVEMENTS PROJECT - PHASE 3A <br />(PROJECT NO. 136792 NONGENERAL <br />FUND) <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 1" Reading <br />❑ <br />Ordinance on 2" ° Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />/s/Kristine Ridge FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />1. Approve an appropriation adjustment recognizing the Fiscal Year 2018-19 appropriation of <br />$200,000 in New Transportation Systems Improvement Area F funding of the New <br />Transportation Systems Improvement Area F prior year fund balance and reappropriating the <br />same amount into the New Transportation Systems Improvement Area F, Improvements Other <br />Than Building expenditure account. <br />2. Authorize the City Manager to execute an agreement with C.R. Manchandia DDS for <br />compensation in the amount of $135,500 for loss of business goodwill related to the full real <br />property acquisition of assessor's parcel number 405-274-10 in May 2017, subject to non - <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />Bristol Street is a north -south transportation corridor designated as a major arterial highway in the <br />City of Santa Ana's Circulation Element of the General Plan. Improving the 3.9-mile Bristol Street <br />segment from Warner Avenue to Memory Lane has been a long-term priority that is being <br />constructed in several phases. Improvements include widening of the street from two to three lanes <br />in each direction, raised landscape medians, and bike lanes. The City is acquiring properties for <br />the development of Phase 3A, bounded by Civic Center Drive and Washington Avenue. Property <br />acquisitions for this phase are complete and construction is anticipated to begin by late summer <br />2020. <br />Property acquisitions on Bristol Street (Exhibit 1) were necessary to accommodate the <br />improvements and widening for Phase 3A. The business owned by C.R. Manchandia DDS has <br />relocated and has already been compensated by the City for its tenant -owned improvements and <br />movable items. The business owner is now seeking compensation for loss of business goodwill <br />that it alleges has been experienced as a result of displacement. No claim for business goodwill <br />was made at the time of relocation. However, this claim does fall within the allowable three-year <br />statute of limitations period. The City utilized an independent licensed business goodwill appraiser <br />20B-1 <br />