Title
Consideration and Possible Approval of First Amendment to Conveyance and Development Agreement with PHC-Los Alamos, Inc. for the Conveyance of Real Property Located along Trinity Drive to Los Alamos County to Construct the Finch Street Extension
Recommended Action
I move that Council approve First Amendment to Conveyance and Development Agreement with PHC-Los Alamos, Inc. for the conveyance of real property located along Trinity Drive to Los Alamos County to construct the Finch Street extension.
County Manager's Recommendation
The County Manager recommends that Council approve Amendment No. 1 as presented.
Body
Beginning in 2019, previous County Manager Harry Burgess and previous CEO of the Los Alamos Medical Center (LAMC) John Whiteside held conversations to review the area around the medical center and to identify measures to improve safety. Subsequently, Los Alamos County Public Works Engineering staff and LAMC Facilities staff had ongoing discussions and collaborated to develop a project plan that was mutually beneficial to improve safety and access at the LAMC driveway and along Trinity Drive. The project plan involved moving the LAMC driveway farther east, away from Diamond Drive, and consolidating it with Finch Street, a proposed connection extending the roadway west to Trinity Drive from its current terminus near 35th Street (See Project Site Map, Attachment C). The relocated driveway provides safety improvements for pedestrians, bicyclists, and motorists while providing connectivity to the new Hills Apartments development as well as any other future developments along 35th Street.
With an agreed upon design concept, County Council programmed capital funds in Fiscal Year 2022 for the design and construction of the Finch Street Extension Project. With the project budgeted, Public Works Engineering staff worked with an on-call engineering firm to complete the design package for construction.
The Development and Conveyance Agreement (Attachment A) was developed in negotiations with the Los Alamos Medical Center in-lieu of eminent domain proceedings and provides for the transfer of Tract B-2 owned by PHC-Los Alamos, Inc. (d/b/a Los Alamos Medical Center) to Los Alamos County which is necessary for the completion of the Finch Street Extension Project. This land acquisition totals approximately 16,998.82 Square Feet, is located along Trinity Drive (NM 502) and within the existing Los Alamos Medical Center parking lot and would be used to construct a consolidated Finch Street/LAMC driveway connection (See Attachment A and included Exhibits).
In-lieu of a cash payment, the County has agreed to make certain improvements to the LAMC parking lot as part of the overall Finch Street Improvement Project. The proposed agreement outlines the specifics of how these improvements will occur. Of note, the proposed agreement allows the County to terminate the agreement if the bids received for the proposed improvements exceed the fair market value of the property the County needs to acquire to complete this road project. Additionally, award of any construction contract for these proposed improvements will require approval by County Council at a future Council meeting.
First Amendment (Attachment B) increases the amount of the construction funds, based on an updated appraisal (Attachment D), from $264,450 to $344,650. Furthermore, it adds Section 1.08 to the Agreement that clarifies how any excess funds from the terms of the Agreement will be handled.
Alternatives
Council could choose not to approve this amendment and the project may not move forward.
Fiscal and Staff Impact/Planned Item
No additional fiscal impact results from the First Amendment. The FY2022 adopted budget included $1,500,000.00 for the project through the County’s Capital Improvement Program (CIP). An additional $1,000,000 was added in adopted FY 2025 budget.
Budget Revision 2024-06 provided an additional $264,450 to the CIP for the purpose of constructing the required LAMC parking Lot Improvements, plus an additional negotiated amount of $23,900 to be provided directly to LAMC upon conveyance of the property, for the purpose of obtaining and installing a new entrance sign.
Attachments
A - Conveyance and Development Agreement
B - First Amendment
C - Project Site Map
D - Appraisal