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HomeMy WebLinkAbout104-20 RESOLUTIONF FAYETr"Oil 4RKANS AS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 104-20 File Number: 2020-0024 2019 DRAINAGE IMPROVEMENTS BOND PROJECT: A RESOLUTION TO APPROVE THE PURCHASE OF PROPERTY LOCATED AT 923 WEST CATO SPRINGS ROAD FROM MIGUEL AND JUANITA CONTRERAS FOR THE AMOUNT OF $92,000.00 TO REDUCE FUTURE FLOOD DAMAGE AND RESTORE FLOOD CAPACITY IN THE AREA, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $3,000.00 TO COVER ALL ASSOCIATED CLOSING COSTS, TO APPROVE INTERNAL CHARGES IN THE AMOUNT OF $1,500.00, AND TO APPROVE A BUDGET ADJUSTMENT - 2019 DRAINAGE IMPROVEMENTS BOND PROJECT WHEREAS, the home at 923 West Cato Springs Road is located within the floodway and has flooded multiple times according to city records; and WHEREAS, the City participates in the Federal Emergency Management Agency Community Rating System, which currently provides a 10% discount on most flood insurance policies within the city limits but the City's rating and the associated discount can be negatively affected by having too many structures within the floodway; and WHEREAS, unless removed, the house would need to be elevated at least 7.5 feet above grade to comply with current codes; and WHEREAS, City staff recommends purchasing the property and removing the structure so that the areas within the floodway will be open space. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Page 1 Printed on 3117120 File Number. 2020-0024 Resolution 104-20 Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the purchase of property located at 923 West Cato Sprigs Road from Miguel and Juanita Contreras for the amount of $92,000.00, approves a project contingency in the amount of $3,000 and further approves internal charges in the amount of $1,500.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign all documents necessary to effectuate the purchase authorized by this Resolution. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, A copy of which is attached to this Resolution. PASSED and APPROVED on 3/16/2020 Attest: may.. •��.. sv, FAYETTEVILLE; Kara Paxton, City Clerk Treasurer %A��,P�.'�� sy.. J Page 2 Printed on 3117120 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 u % Text File File Number: 2020-0024 Agenda Date: 3/16/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 7 2019 DRAINAGE IMPROVEMENTS BOND PROJECT: A RESOLUTION TO APPROVE THE PURCHASE OF PROPERTY LOCATED AT 923 WEST CATO SPRINGS ROAD FROM MIGUEL AND JUANITA CONTRERAS FOR THE AMOUNT OF $92,000.00 TO REDUCE FUTURE FLOOD DAMAGE AND RESTORE FLOOD CAPACITY 1N THE AREA, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $3,000.00 TO COVER ALL ASSOCIATED CLOSING COSTS; TO APPROVE INTERNAL CHARGES IN THE AMOUNT OF $1,500.00, AND TO APPROVE A BUDGET ADJUSTMENT - 2019 DRAINAGE IMPROVEMENTS BOND PROJECT WHEREAS, the home at 923 West Cato Springs Road is located within the floodway and has flooded multiple times according to city records; and WHEREAS, the City participates in the Federal Emergency Management Agency Community Rating System, which currently provides a 10% discount on most flood insurance policies within the city limits but the City's rating and the associated discount can be negatively affected by having too many structures within the floodway; and WHEREAS, unless removed, the house would need to be elevated at least 7.5 feet above grade to comply with current codes; and WHEREAS, City staff recommends purchasing the property and removing the structure so that the areas within the floodway will be open space. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the purchase of property located at 923 West Cato Sprigs Road from Miguel and Juanita Contreras for the amount of $92,000.00, approves a project contingency in the amount of $3,000 and further approves internal charges in the amount of $1,500.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign all documents necessary to effectuate the purchase authorized by this Resolution. City of Fayetteville, Arkansas Page 1 Printed on 3117/2020 File Number: 2020-0024 Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. City of Fayetteville, Arkansas Paye 2 Printed on 3117/2020 Alan Pugh Submitted By City of Fayetteville Staff Review Form 2020-0024 Legistar File ID 2/4/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/28/2020 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Authorization to purchase the property and structure located at 923 W Cato Springs Road, in the amount of $92,000 plus a $3,000 contingency for the associated closing costs and taxes to reduce future flood damage and restore flood capacity in the area, and $1,500 for Internal Charges and approval of a budget adjustment. 4604.860.7405-5805.00 Account Number 46040.7405 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: 4604 - Drainage Projects 2019 Bonds Fund Drainage Projects (2019 Bonds), Floodplain Buyout/Elevation Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 7,968,467.00 $ 920,794.51 7,047,672.49 $ 96, 500.00 6,951,172.49 Previous Ordinance or Resolution # Approval Date: V20180321 K:\Engineering Design Services\Projects\Drainage Projects\2019 Bond Program-Drainage\Floodplain Buyout_Elevation\923 S Cato Springs\2020-0024 SRF -923 W Cato Springs 1 CITY OF C FAYETTEVILLE ARKANSAS MEETING OF MARCH 17, 2020 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: February 21, 2020 CITY COUNCIL MEMO SUBJECT: Authorization to purchase the property and structure located at 923 W Cato Springs Road, in the amount of $92,000 plus a $3,000 contingency for the associated closing costs and taxes and $1,500 for Internal Charges and approval of a budget adjustment. RECOMMENDATION: Staff recommends authorizing the purchase of the property and structure located at 923 W Cato Springs Road, in the amount of $92,000 plus a $3,000 contingency for the associated closing costs and taxes to reduce future flood damage and restore flood capacity in the area, and $1,500 for Internal Charges and approval of a budget adjustment. This recommendation is based on the following: 1. The home located at 923 W Cato Springs Road has flooded multiple times according to city records. 2. As a service to our residents, the City of Fayetteville participates in the Federal Emergency Management Agency (FEMA) Community Rating System (CRS). This provides for discounts (currently 10%) on most flood insurance policies within the City limits. 3. As of November 30, 2018, the City of Fayetteville contained 532 flood insurance policies resulting in approximately $522,224 in annual premiums paid. The total insurance coverage in force was just over $122 million and the total paid losses since entering the program in 1982 was approximately $3.2 million. 4. CRS requires the participating community to develop and implement a plan to deal with structures that continually flood. In many instances, including this one, the only economically feasible option is to purchase the property. 5. The owner of the property is a willing seller and has accepted below appraised value for the structure and property. 6. It will increase Fayetteville's overall flood resiliency 7. It will reduce the overall flood loss to the community during large rain events affirming one goal of the Washington County Pre -Hazard Mitigation plan. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BACKGROUND: The subject property and structure are located within Zone AE according to flood insurance rate map 05143CO220F with the structure and the majority of the property located within the floodway. For those not familiar, the Special Flood Hazard Area (SFHA) is made up of multiple "zones." These zones identify the various risks as well as the applicable regulations for development. Zone AE is commonly referred to as the 100 -year floodplain and is made up of both floodplain and floodway. The floodway is the area designated by the Federal Emergency Management Agency, FEMA, for flood water conveyance. This is often relatively high velocity flood waters and the regulations are very restrictive as the intent is for this area to remain open space in order to preserve that conveyance. It is also the intent of the regulation to restrict developments in these areas which are the most susceptible to flooding. Unfortunately, this structure was located within a high-risk area prior to the maps being adopted by the City and as such has a long history of flooding. DISCUSSION: The current home has been under renovation for several years. In 2013, the initial building permit (AP #56554) contained a relatively limited scope based on the regulations in place for existing homes within the floodplain that are not in compliance with current codes. However, based on my conversations with the owner these improvements have expanded over time as damage and other code violations were discovered during the renovation. Along with the renovation, the structure did flood during the April 2017 rains and at this point the structure is considered substantially damaged/improved and the owner has limited options on moving forward. This leaves few options for the owner moving forward and given the history of flooding staff feels the most feasible solution is for the City to purchase the home and have it removed from the lot. If the home is not removed, the options include elevating the structure to two feet above the base flood elevation or requesting a variance from Planning Commission from that requirement. The preliminary analysis indicates that the structure would likely need to be elevated approximately 7.5 feet above grade in order to bring it into compliance with current codes. Due to the fact the structure is within the floodway it is highly susceptible to flooding and relatively high velocity flood waters and if it were elevated in place, staff would continue have some concerns that the velocity of the water may continue to threaten the foundation of the home. It should be noted that this property is bordered on the east and west by City owned property which is and is planned to remain either open space or potentially a future parking area. However, the planned parking area is shown to remain outside of the floodway. Staff feels that given the circumstances and potential for the area to continue to flood that both open space and parking area that remains outside of the floodway is the highest and best use of the property. BUDGET/STAFF IMPACT: As a part of the process, engineering staff had the property appraised to get a general idea of the market value. In July of 2017 the market value of the property was indicated to be $105,000 based on that appraisal. During the appraisal the owner indicated that approximately $64,000 in improvements/repairs from previous damage, flood events and vandalism had been performed to the structure. The owner has accepted an offer of $92,000 for the property and structure. Attachments: See photos on following pages Offer and acceptance letter April 2017 Flood: Home at 923 W Cato Springs Road during the afternoon. It is believed that the water levels rose further after this photograph was taken. There was another band of rain that moved through later in the evening. Photos of the south side of the Cato Springs Road Bridge. Notice the velocity of the flood waters at this location, relatively close to the home in question. - N2 t:;7 SV'ing4 Rd s Map of the flood pla i n/floodway - - and surrounding properties to 923 W Cato Springs. City owned property PANS_ - - showed in green ,. effrsr,�os1esco�oF zoo's r shading. S December 12, 2019 Miguel Contreras 1085 S Nelson Drive Fayetteville, AR 72701 RE: Dear Mr. and Mrs. Contreras: CITY OF FAYETTEVILLE ARKANSAS 923 W. Cato Springs Road Parcel No. 765-15371-000 Offer Letter The City of Fayetteville has been in contact with you previously regarding the purchase of property you own within the floodplain at 923 W. Cato Springs Road. Thank you for your visit today updating your contact information. The City of Fayetteville hereby offers $92,000.00, contingent upon City Council approval, for 0.27 acres known as part of the N '/ of the NW'/< of Section 28, Township 16 North, Range 30 West and Washington County Assessment Parcel No. 765-15371-000 and including a 1568 square foot dwelling in its current condition. Upon acceptance of the offer and City Council approval, title insurance will be ordered, and a closing will be scheduled. We will notify you of the date of the closing. Each party to this transaction will pay normal closing costs associated with a transaction such as this one. A copy of estimated costs is attached, any real estate taxes due at the time of closing are not included in this estimate. A City Land Agent will be glad to meet with you at your convenience and discuss all phases of this project and the associated acquisitions. Please contact Holly Jones at (479) 444-3414 (hiones fayetteville-ar.gov) or Brandi Samuels (479) 444-3421 (bsamuelsfa etteville-ar.govt. For questions or concerns, please contact Alan Pugh, Staff Engineer at aapughfayetteville-ar.gov or Chris Brown, City Engineer at cbrown a Fayetteville-ar.gov. Sincerely, �4- Chris Brown City Engineer CB/hj Agur,AiAfteras Accepted. itf MonlmPas Date: (�-" f —4 ' C Witness: r City of Fayetteville Engineering Division: 479-575-8206 Mailing Address: www.fayetteville-ar.gov 113 W. Mountain Street Fayetteville, AR 72701 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 ENGINEERING (621) 2020 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Authorization to purchase the property and structure located at 923 W. Cato Springs Road in the amount of $92,000 plus a $3,000 contingency for the associated closing ciosts and taxes to reduce future flood damage and restore flood capacity in the area, and $1,500 for Internal Charges and approval of a budget adjustment. COUNCIL DATE: 3/17/2020 LEGISTAR FILE ID#: 2020-0024 Matthew Madd 0- 3/2/2020 1:47 PM Budget Director Date TYPE: D - (City Council) JOURNAL #: RESOLUTION/ORDINANCE I GLDATE: CHKD/POSTED: 3/17/2020 TOTAL Account Number - _ Increase / (Decrease) Expense Revenue Proiect.Sub# Project Sub.Detl AT v.20191231 Account Name 4604.860.7405-5805.00 92,000 - 46040 7405 EX Land - Acquisition 4604.860.7405-5911.99 4604.860.7405-5860.04 3,000 - 1,500 - 46040 46040 7405 7405 EX EX Contingency - Capital Project Capital Prof Svcs - Engineering Contra 4604.860.7999-5899.00 (96,500) - 46040 7999 EX Unallocated - Budget H:\Budget Adjustments\2020_Budget\City Council\03-17-2020\BA 2020-0024 923 W Cato Springs 1 of 1