PURPOSE
The purpose of this procedure is to provide a guideline for identifying property needs for a project. These include the timely securing of all permanent easements and fee purchases, as well as all temporary rights, no matter how minor or brief, such as rights of entry, permits to enter to construct, and temporary construction easements.
REFERENCES
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RESPONSIBILITIES
Project Manager (PM): If a project involves land purchase, easements, rights of entry, or issues related to property, the PM is responsible to contact either the Real Estate Group or the General Services Department’s Asset Management Group, whichever is responsible for the timely securing of those property rights necessary for completion of a project. Pre-design shall include Planning and Asset Management analyses consisting of estimated costs, probable schedule for the securing of those property rights necessary and potential problems and possible solutions associated with each alternative prior to selecting the preferred alternative. Complete a preliminary business case analysis for the proposed alternatives, including a cost benefit analysis.
The PM for Bond and/or Building Projects, early in the process, is also responsible to contact the Bureau of Engineering District Office where the proposed building is to be located to identify future Highway Dedication and street widening requirements. The PM should obtain these requirements in writing (memo) and save them in the document controls system and the project file. This information could limit the area of the property available for building.
The PM may arrange for joint studies in the project development stage to obtain space requirements and access route locations and design that is economical and compatible with the project’s function and operational needs and requirements.
Project Engineer (PE): On large or complex projects the PM may bring in a PE to assist the PM with his/her responsibilities.
Department of City Planning (DCP): The PM should coordinate with DCP for building projects. Section 12.24 of the Los Angeles Municipal Code (LAMC) authorizes Conditional Use Permits and other similar quasi-judicial approvals. These approvals often involve conditions that could have significant impacts on the project.
Real Estate Group: For infrastructure projects, the Real Estate Group is responsible for assisting the PM in identifying property needs for the project and preparing cost estimates for acquiring the required right-of-way.
District Office: For bond and/or building projects, the Bureau of Engineering District Office over the area where the project is located is responsible for determining the required Highway Dedication, street widening and other needed public improvements in the public right-of-way.
Owner or Client Department: For bond and/or building projects, the Owner or Client Department, with the PM’s assistance, is responsible to contact the General Services Department’s Asset Management Group to identify the estimated costs and potential problems associated with each alternative being considered.
General Services Department, Asset Management Group: For bond and/or building projects, the Asset Management Group is responsible for identifying the estimated costs and potential problems associated with each alternative being considered by the Owner Department. General Services can also assist in site selection for building projects.
PROCEDURE
The Department of City Planning (DCP) has developed Specialized Requirement forms for various types of Conditional Use Permits (CUPs). The PM is to identify if proposed project falls under one of the categories listed, use of the appropriate form is required and apply for CUP. The Conditional Uses may require specific findings in addition to the Findings of Approval established under Code Section 12.24-E. A link to the Planning and Zoning Code is available from City Planning’s website at http://planning.lacity.org.
Real estate acquisition is required any time that a project requires permanent or temporary rights in the land of another. For example, when the preliminary environmental investigation warrants it, or when an aspect of the pre-design necessitates an actual on-site inspection of property not currently owned by the City of Los Angeles, the Bureau must obtain a right of entry for specific purposes (soils testing, structural inspection, etc.)
The property needs required by a project can have a significant impact on the cost and schedule of a project. Property needs may even affect the preferred alternative. The Real Estate Group should be contacted early in the development of the scope of the project. The Real Estate Group can guide the PM as to the land acquisition or access/entry rights that may be needed and can provide options on how to accommodate right-of-way issues. Right-of-way issues can range from a simple right of entry, which can be accomplished with a one-page document in one day, to a complex acquisition involving numerous parcels and perhaps requiring property condemnation. It is important for the PM to understand that Real Estate issues are complex and are beyond the expertise of most project managers or project engineers. It is always wise to consult with the experts in this field.
As an example of the need for expertise in this area, a large sewer project was designed with an access shaft that would block several homeowners from their front driveways for several years. The designer felt that this was not an issue because the homeowners had access to their homes from a rear alley. Unfortunately, this assumption was incorrect, and the City had no right to remove their front access for such an extended period of time. Fortunately, the Bureau’s Real Estate Group was successful in negotiating rental agreements with each homeowner to allow construction of the access shaft. The lesson here is the importance of seeking advice from the experts within the Bureau on such matters. It is unwise to rely on one’s own “engineering” opinion in such matters.
It is extremely important to identify future Highway Dedication and street widening requirements from the Bureau of Engineering District Office where the property for a proposed building is located. This can greatly affect the setbacks required, the area of the property available for building, and the cost of the street and other public right-of-way improvements that must be accounted for in the project budget. It is imperative that these needs be identified early on in the pre-design phase, so as not to impact the delivery of the project.
Infrastructure Projects
For infrastructure projects, which include street, sewer, stormwater, and water reclamation plant projects, the PM should solicit input from the Real Estate Group as to property needs while developing the alternatives. The project information should be reviewed and approved by the client’s department and if applicable obtain funding authority prior to be given to the Real Estate Group for their review and response. Client’s approval and Real Estate Group responses and recommendations should be documented in the pre-design report.
As part of the alternative selection process the PM should invite Real Estate Group representatives to any pre-design workshops or meetings and review their input regarding property needs and associated schedules. If there are any right-of-way, land acquisition, condemnation or other property-related issues associated with the project, the PM should immediately initiate the real estate acquisition process noted below.
The PM prepares a written request to provide services and submits it too the Real Estate Group (Attachment 7.2-1).
Following initial contact, the PM schedules and conducts a field inspection with Real Estate Group staff.
The Real Estate Group staff assesses the impact of potential design scenarios and provides input to the PM regarding how to minimize right-of-way costs and avoid eminent domain proceedings before the preferred project scenario is selected.
The PM requests the Real Estate Group to prepare a cost estimate for acquisition of the necessary right-of-way, including a preliminary estimate for all land acquisitions, improvements to be taken, restorative work, severance damages and, when applicable, relocation assistance. There are two detailed levels of estimates available:
Class C Estimate – Provides the overall project cost. The expected precision variance is 30%. It is intended for screening alternative design solutions when the project details are not yet clearly developed, and sufficient for selecting correct alternative and investment decisions
Class B Estimate – An intermediate estimate between Class "A" and Class "C" with an expected precision variance of 20%. Provides the total project cost on a parcel-by-parcel basis, and is most useful in fine-tuning a final acquisition plan. Upon acceptance, these estimates become the basis for project cost control during design progression.
The Real Estate Group prepares the cost estimate and forwards a copy to the PM.
The PM incorporates the estimate amount into the project budget.
The PM ensures that the preliminary plans set the required alignments and identify the general parameters of the proposed property. The PM then forwards the plans to the Survey Division for determining the exact right-of-way required to accomplish the project as proposed.
Bond and/or Building Projects
For bond and/or building projects, the Owner Department (e.g. Library, Fire, Animal Regulation, Police, etc), with the assistance of the PM, initiates the real estate acquisition process at the start of the Pre-Design Phase by submitting a request to provide services to the General Services Department, Asset Management Group.
Asset Management will then assist the Owner Department, as required, in selecting the project site, identifying the potential design scenarios that will minimize right-of-way costs and avoid eminent domain proceedings, and developing cost estimates for any rights-of-way or land acquisitions that the Owner Department is considering. The PM monitors this process and provides assistance, as needed.
After a potentially acceptable site has been identified, the PM should go to the appropriate Bureau of Engineering District Office to obtain the Highway Dedication and street widening requirements. This information will help to determine the actual buildable area of the property and the cost of the street widening and other required public improvements. This will help to make an informed decision of the overall desirability of the site in question. Once a site has been officially chosen, the PM must get an official determination in writing of the dedication and improvement requirements from the District Office.
After determining the Highway Dedication and street widening requirements, the PM must obtain a cost estimate of the required street work and other public improvements. The Street Improvement Group may be used for this purpose. The PM must then incorporate this public improvement estimate into the project budget.
RELATED PROCEDURES
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