Council authorizes eminent domain resolution to secure easements for Murphy Canyon trunk sewer project over owner objections

The City Council adopted a resolution of necessity to commence eminent domain proceedings to acquire a permanent sewer easement and a temporary construction easement for the Murphy Canyon trunk sewer repair and rehabilitation (CIP B‑17005), after staff described the project scope, negotiation history and the need to relocate existing infrastructure currently beneath private property.

Christina Cruz, supervising property agent in the Economic Development Department (Real Estate Acquisitions), told the council the project will rehabilitate and replace aging trunk sewer pipelines—installing roughly 1.3 miles of new gravity sewer, rehabilitating about 5.2 miles of existing pipelines and addressing manholes and access issues. Cruz said the city negotiated with three affected property owners and reached agreement with two; the remaining owner (Daily Score Dolphin) and the city reached an impasse despite three increases to the city’s offer. Cruz said construction will temporarily impact 31 parking spaces on the property and estimated the work would take about 13 months.

The property owner’s eminent‑domain counsel, Chuck Krolikowski, argued the city's appraisal relied on comparables that were too old, failed to properly account for severance damages and pre‑condemnation losses, and that tenants on the site had not been notified of the hearing. Krolikowski also warned of legal risk if council members appeared to have foreclosed their discretion based on staff representations, citing case law that courts have voided resolutions where discretion was improperly relinquished.

Deputy city attorneys and staff responded that the city retained qualified, MAI‑accredited appraisers, had raised its offer multiple times above the appraisal, had followed Government Code 7267.2 negotiation requirements and would update valuations in the course of litigation as required by law. City staff said the project is necessary to replace pipeline segments that have exceeded useful life and posed maintenance and safety concerns.

After debate and questions about valuation, notice and timing, the council moved and seconded the staff recommendation. The transcript records the motion carried with the clerk's roll call recorded as 'That does pass unanimously 8 to 1 with council member Campbell absent.' Staff emphasized they would continue negotiation where possible and that just compensation would be determined through further negotiation or a court proceeding.