§ 2-214. Project approval.

Unless previously authorized by budget (budgeted maintenance or construction projects), the proposed project requiring acquisition of private property interests must be approved by the board of directors.

(1)

For acquisitions of a value up to five thousand dollars ($5,000.00):

a.

Staff will estimate the value of each acquisition based on appraisal reports from other properties in the neighborhood. The estimate value must be reviewed and approved by the staff employee's department head or his/her designee.

b.

Staff sends an offer letter to the property owner.

c.

Staff will not negotiate with the property owner except to receive information about an obvious error in the staff's valuation.

d.

In the event of complicating factors in the acquisition or if there is no reliable value data available, the subsection a. valuation procedure will not be used; rather, an appraiser will be retained to establish value.

e.

If the acquisition value issue is settled, staff or the city attorney will close the transaction.

f.

If the acquisition value issue is not settled, a formal appraisal will be prepared and forwarded to the property owner. Any proposed settlement above the appraised amount will be submitted to the board. The use of the power of eminent domain will be submitted to the board for approval. The board may either approve a settlement amount or authorize the use of eminent domain to acquire the property interest.

(2)

For acquisitions of a value between five thousand one dollars ($5,001.00) and twenty thousand dollars ($20,000.00):

a.

Staff will have a formal appraisal report prepared by a qualified appraiser.

b.

Staff will send an offer letter to the affected property owner.

c.

Staff will not negotiate with the property owner except to receive information about an obvious error in the appraiser's valuation.

d.

If the acquisition value issue is settled, staff or the city attorney will close the transaction.

e.

If the acquisition value issue is not settled, any settlement offer from the property owner will be forwarded to the board. The board may either approve a settlement amount or authorize the use of eminent domain to acquire the property interest.

(3)

For acquisitions of a value greater than twenty thousand dollars ($20,000.00):

a.

Staff will have a formal appraisal report prepared by a qualified appraiser.

b.

The appraised amount and a request for authorization to make an offer will be presented to the board for approval.

c.

If authorized, the city attorney's office or a staff member will send an offer letter to the property owner.

d.

If the acquisition value issue is settled for appraised value, the city attorney or a staff member will close on the acquisition with the property owner.

e.

Any settlement greater than the appraised amount will require board approval. If the value issue is not settled, the use of the power of eminent domain will be submitted to the board for approval. The board may either approve a settlement amount or authorize the use of eminent domain to acquire the property interest.

(4)

For acquisitions involving only temporary construction easements of any value where there is no damage to substantial improvements:

a.

Staff will estimate the value of the temporary construction easement based on appraisal reports from other properties in the neighborhood.

b.

In the event of complicating factors in the acquisition, damage to substantial improvements, or reliable appraisal data is not available, the subsection a. valuation procedure will not be used; rather, an appraiser will be retained to establish value.

c.

Staff will send an offer letter to the affected property owner.

d.

Staff will not negotiate with the property owner except to receive information about an obvious error in the staff's valuation.

e.

If the acquisition value issue is settled for the estimated or appraisal amount, staff or the city attorney will close the transaction.

f.

If the acquisition value issue is not settled, a formal appraisal will be prepared and forwarded to the property owner. Any settlement above the appraised amount will be submitted to the board. The use of the power of eminent domain will be submitted to the board for approval. The board may either approve a settlement amount or authorize the use of eminent domain to acquire the property interest.

(Ord. No. 40-05, § 2, 5-17-05; Ord. No. 93-12, § 5, 12-4-12)