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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 20, 2014 TITLE: SETTLEMENT AGREEMENT WITH THE SMOG PLACE FOR THE GRAND AVENUE IMPROVEMENTS AND WIDENING PROJECT (PROJECT NO. 081732 NONGENERALFUND) s � CITY MANAG RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on1 "Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a Loss of Business Goodwill Agreement with Antonio Rios dba The Smog Place, the tenant of the property located at 1222 East Fourth Street, Unit B (APN 398 - 385 -03), in the amount of $30,000, for the loss of business goodwill, subject to nonsubstantive changes approved by the City Manager and City Attorney. This action will allow the City to complete the right -of -way acquisition phase in preparation for the final design and subsequent project construction. Grand Avenue is a north -south transportation facility, which is designated as a major arterial highway and carries in excess of 35,000 vehicles per day. The improvements and widening of Grand Avenue between First and Seventeenth Streets has been a long -term priority project that will be constructed in several phases. Improvements include raised landscape medians; new curb, gutter, and sidewalk; bike lanes; and roadway widening from two to three lanes in each direction. The Public Works Agency is acquiring property for the development of Phase I (bounded by First and Fourth Streets), and expects to complete the acquisition process by spring of 2014. Construction is anticipated to begin by summer of 2014. The Uniform Relocation Act obligates the City to relocate tenants of properties acquired for public improvements, and sets standards for the benefit amounts. As part of the relocation process, Antonio Rios, the tenant at 1222 East Fourth Street (Exhibit 1), was relocated within Santa Ana to 702 East Fourth Street, Unit B. The business experienced loss of revenue due to its closure during the move and reestablishment period. A $30,000 claim for loss of business goodwill was submitted by Mr. Rios' consultant, and it has been reviewed and recommended by the City's appraiser. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project has been determined to be adequately evaluated in the previously prepared Final Environmental Impact Report (SCH No. 1998051068) approved by the City Council in 2002. In accordance with the National Environmental Policy Act, an Environmental Assessment document with a Finding of No 25C -1