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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 7, 2012 <br />CLERK OF COUNCIL USE ONLY: <br />TITLE: APPROVED <br />SETTLEMENT AGREEMENT WITH ? As Recommended <br />EVANS ROOFING COMPANY, INC. FOR El Amended <br />El Or dinance on 15t Reading <br />RIGHT-OF-WAY FOR THE AT- GRADE ? Ordinance on 2nd Reading <br />RAIL SAFETY ENHANCEMENT PROJECT ? Implementing Resolution <br />(PROJECT 091745) NO FISCAL IMPACT ? Set Public Hearing For_ <br />CONTINUED TO <br />} <br />IE G f/ FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Authorize the City Manager and Clerk of the Council to execute the attached acquisition settlement <br />agreement with Evans Roofing Company, Inc. in the amount of $285,000 for right-of-way for the <br />At-Grade Rail Safety Enhancement Project, subject to nonsubstantive changes approved by the <br />City Manager and City Attorney. <br />DISCUSSION <br />On October 20, 2008, City Council approved a cooperative agreement with the Orange County <br />Transportation Authority (OCTA) for the Grade Crossing Enhancement Program at ten crossings <br />in the city. Improvements include medians, roadway signing and striping, pedestrian gates and <br />other vehicular gate enhancements. OCTA is the lead agency for this project and will be paying <br />100 percent of the costs associated with the acquisition of the property at 1101 E. Chestnut. <br />To accommodate the project, OCTA has also agreed to pay the cost associated with relocating <br />Evans Roofing Company, Inc., the tenant at that location (Exhibit 1). As part of relocation process, <br />the tenant must be paid for loss of business goodwill, due to the relocation of the business to their <br />replacement site at 2020 S. Yale St. in Santa Ana. <br />Council approved an initial acquisition settlement agreement on September 7, 2010 in the amount <br />of $132,000. At that time, this agreed-upon compensation for loss of business goodwill was based <br />on the estimate of the goodwill loss, as determined by an appraiser, licensed by the State of <br />California. Upon completion of the relocation of the tenant to 2020 S. Yale, it was determined that <br />the tenant was eligible for loss of business goodwill in the amount of $285,000. OCTA has <br />reviewed and approved this revised amount. <br />25G-1