GEORGIA DEPARTMENT OF TRANSPORTATION NEGOTIATION TOOLS TO SPEED UP PROJECT DELIVERY MAY, 2005.

GEORGIAGEORGIADEPARTMENT OF DEPARTMENT OF TRANSPORTATIONTRANSPORTATION

NEGOTIATION TOOLSNEGOTIATION TOOLS

TO TO

SPEED UP PROJECT DELIVERYSPEED UP PROJECT DELIVERY

MAY, 2005MAY, 2005

GDOT R/W OFFICEGDOT R/W OFFICEMISSION STATEMENTMISSION STATEMENT

Maintain orderly and timely acquisitions

and clearance of all properties and rights necessary for construction of State Aid and Federal Aid Transportation Systems.

GDOT CHALLENGEGDOT CHALLENGE

GOVERNOR’S “FAST FORWARD” PROGRAM

(2005 – 2010)

Georgia has an aggressive plan to move its transportation program forward.

GDOT CHALLENGEGDOT CHALLENGE

1. For the next 6 years $15.5 billion will be spent to relieve congestion & promote economic growth to the State.2. This program allows the state to do in six years what otherwise would have taken 18 years.3. Half of the $$ is allocated to the Metro

Atlanta area and the other half is allocated to other regions of the state.

GDOT CHALLENGEGDOT CHALLENGE

FAST FORWARD PROGRAM

• Traffic Monitoring Systems• HERO Services (Stranded Motorist Aid that may disrupt the flow of traffic)• Ramp Metering Onto Interstates• Traffic Signal Upgrades• Traffic Signal Synchronization

GDOT CHALLENGEGDOT CHALLENGE

• HOV Lanes (to encourage carpools and greater bus travel)

• New Transit Corridors

• Improvements to Interstate Systems

• New Roadways

• Improvements to Other Roadway Corridors

PROTECTIVE BUYSPROTECTIVE BUYS

• 23 CFR 710.503 allows GDOT to purchase properties if we demonstrate that development of the property is imminent and such development will limit future transportation choices. A significant increase in R/W cost may be considered as an element to justify this purchase.

PROTECTIVE BUYSPROTECTIVE BUYS

• GDOT makes every effort to purchase properties in advance, if at all possible, should we determine it will be affected by our roadway project. We discover the proposed developments through various sources:

• Local Governments Notify DOT• Property Owners Notify DOT• DOT Driveway Permit Personnel Notify DOT• Designers Notify DOT• State Officials Notify DOT

PROTECTIVE BUYSPROTECTIVE BUYS

• GDOT files condemnations on protective buys.

NO OFFERS CAN BE MADE NO OFFERS CAN BE MADE UNTIL FUNDS ARE AUTHORIZEDUNTIL FUNDS ARE AUTHORIZED

• 23 CFR 710.307 prohibits Agencies from making offers prior to funding being authorized. Funding can not be authorized until the Environmental Document is approved.

• Pre-Acquisition activities can begin prior to funding being authorized.

PRE-ACQUISITION ACTIVITIESPRE-ACQUISITION ACTIVITIES(CONTINUED)(CONTINUED)

Activities which begin prior to funding approval include:

• Review R/W Plans

• Title Work

• Consultant Pre-Acquisition Bid Meeting (if not staff assigned)

• Consultant Pre-Acquisition Assignment

• Appraisal Bid Meeting

PRE-ACQUISITION ACTIVITIESPRE-ACQUISITION ACTIVITIES(CONTINUED)(CONTINUED)

• Assignment of Appraisals • Receipt of Appraisals • Assignment of Specialty Appraisal Reports (TF

Reports/Sign Appraisals/Septic Reports/Cost to Cures/Soil Reports, etc)

• Review Appraisal Reports• Consultant Acquisition Bid Meeting• Consultant Acquisition Assignment• Relocation Interviews Conducted

PRE-ACQUISITION ACTIVITIESPRE-ACQUISITION ACTIVITIES(CONTINUED)(CONTINUED)

• Prepare inventory of all affected structures and all potential structures on remainders that will be torn down

• Prepare sign inventory• Request UST Reports & Necessary Soil

Contamination Reports• Hold Property Owners’ Meeting• (Basically all activities can be accomplished with

the exception of making the offer)

NEGOTIATIONS WITHOUT NEGOTIATIONS WITHOUT APPRAISALS APPRAISALS (From Cost Estimates)(From Cost Estimates)

(LESS THAN $10,000)(LESS THAN $10,000)

• Based on 49 CFR 24.102 (c) (2) GDOT negotiates without an appraisal on parcels that are uncomplicated and that have a value of $10,000.00 or less. A nominal counter offer (up to $12,500) may be considered which can exceed the $10,000.00 limit.

NEGOTIATIONS WITHOUT NEGOTIATIONS WITHOUT APPRAISALS APPRAISALS (From Cost Estimates)(From Cost Estimates)

• A Cost Estimate is Required to be prepared and reviewed by an Appraisal Review Staff Member prior to negotiations being conducted

• This procedure is extended to our Local Government Agencies.

• GDOT also reviews all L.G.A. Cost Estimates.

NEGOTIATIONS WITHOUT NEGOTIATIONS WITHOUT APPRAISALS APPRAISALS (From Data Books)(From Data Books)

(LESS THAN $25,000)(LESS THAN $25,000)

• Based on 49 CFR 24.102 GDOT negotiates without an appraisal on parcels that are uncomplicated and that have a value of $25,000.00 or less. A nominal counter offer (up to $30,000) may be considered which will exceed the $25,000 limit.

NEGOTIATIONS WITHOUT NEGOTIATIONS WITHOUT APPRAISALS APPRAISALS (From Data Books)(From Data Books)

(LESS THAN $25,000)(LESS THAN $25,000)

• A Data Book must be Completed to include a Range of Values. This must then be submitted for review and approval by the Review Appraiser.

• An “Estimate of Appraisal Calculation” form must be prepared.

• A “Waiver Letter” must be signed by the Property Owner if this process is used. (See Attached Waiver Letter.)

Waiver LetterWaiver Letter

• WAIVER LETTER/ DONATION FORM•• Dear • This is to advise that plans are underway for the construction of

.• The proposed construction will require additional rights of way and/or

easement. The plans indicate that you are one of the property owners from which right of way and/or easement must be acquired, as indicated on the attached plat. Our Right of Way Agent will be glad to point out the location of the required acquisition on the ground and accompany you on an inspection of this area if you so desire.

• The construction of this project is to be financed with State and/or Federal funds. It is the responsibility of the State/County to acquire the necessary right of way for the project. The acquisition affecting your property allows you one of the following three options concerning real estate appraisals:

• Please indicate your choice by executing one of the following:

Waiver LetterWaiver Letter

1. I desire the offer of fair market value (just compensation) to be based upon a formal real estate appraisal.

_______________________________________________________(L.S.)2. I desire to donate my property which is required for right of way, and do ( )

do not ( ) desire a formal appraisal. ________________________________________________________(L.S.)3. I desire to negotiate with the DOT for the required right of way settlement,

for an amount of money or services, based on a streamlined procedure known as “Estimate of Appraisal Calculation”. This estimate procedure is based upon market data, but does not utilize a formal real estate appraisal. If I reach an agreement with the DOT utilizing this procedure, a formal appraisal will not be done. If I do not reach an agreement with the DOT using this streamlined procedure, DOT will prepare/have prepared a formal real estate appraisal from which the offer of fair market value will be based.

_______________________________________________________(L.S.)

NEGOTIATIONS WITHOUT NEGOTIATIONS WITHOUT APPRAISALS APPRAISALS (From Data Book)(From Data Book)

(LESS THAN $25,000)(LESS THAN $25,000)

• This procedure is extended to our Local Government Agencies.

• GDOT also reviews all DATA Books Prepared by L.G.A. Appraisers (who are required to be on DOT’s approved Appraiser List).

MIMIMUM AWARDMIMIMUM AWARD

• GDOT has established a Minimum Award amount of $500 that a property owner will be paid for a low value acquisition.

STAFF CLOSINGSSTAFF CLOSINGS

• DOT allows Staff Members to conduct closings on non-complicated parcels, as long as the value does not exceed $100,000.00.

• DOT Staff Members are trained on Closing Procedures.

• Necessary releases are required.• Title attorney is required to perform check down

of title prior to closing and also prepares the Final Title report.

LIEN RELEASESLIEN RELEASES

• GDOT allows closings without releases on parcels that have a Settlement Value that do not exceed $15,000 provided:1. Lien holder does not have possession of the

property.

2. The remainder property value is in excess of the lien balance.

LIEN RELEASESLIEN RELEASES

• Partial Take Closings Without Lien Releases Form is required to be completed.

• Exception is noted on the Final Title Certificate by Title Attorney.

• Documentation is provided to Attorney.

NEGOTIATIONS BY MAILNEGOTIATIONS BY MAIL

• GDOT does not elect to negotiate by mail unless the owners are out of town or unless the owner specifically request the offer be mailed.

• We feel it is critical to meet with the owner and discuss the offer; explain their rights; review the R/W plans, cross sections, driveway profiles and construction plans.

• In addition, full disclosures to the owners can decrease the possibilities of future potential lawsuits against the DOT once construction begins.

OTHER TOOLS GDOT USESOTHER TOOLS GDOT USES

• ALL NEW R/W TEAM MEMBERS ARE ENROLLED IN A 3 WEEK NEGOTIATION CLASS

• PLAN REVIEW• COMPUTER TRAINING• REVIEW OF APPROPRIATE R/W FORMS• DISCUSS VARIOUS TYPES OF OFFERS• PREPARE OFFER PACKAGE• MOCK OFFER• OFFER MADE TO OWNER WITH TRAINER

OTHER TOOLS GDOT USESOTHER TOOLS GDOT USES

• Most of our Negotiators hold at least a Registered Appraisal License and take yearly continuing education courses.

• Computer Training is Available.

• Advanced 3 Month Appraisal Class is available to R/W Team Members once they obtain their Registration License.

OTHER TOOLS GDOT USESOTHER TOOLS GDOT USES

• Appraisal hours are earned throughout their R/W career until they obtain the necessary hours to become a General Certified Appraiser

• Relocation Training Classes Available• Advanced Negotiation Training Classes

are Available• Uniform Act Training Class Available

through FHWA

OTHER TOOLS GDOT USESOTHER TOOLS GDOT USES

• Negotiation/Relocation & Uniform Act Training Classes are Available to our Consultants (sponsored by GDOT & FHWA)

• Negotiation/Relocation & Uniform Act Training Classes are Available to our Local Government Agencies (sponsored by GDOT & FHWA)

• Property Management Training Class

QUESTIONS ??????QUESTIONS ??????

• If you have comments or questions you may contact me at:

[email protected]