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AASHTO 2005 Right of Way and Utilities Conference Austin, Texas

AASHTO 2005 Right of Way and Utilities Conference Austin, Texas. Toolbox for the Negotiator. Arkansas State Highway and Transportation Department. Toolbox for the Negotiator AASHTO 2005 Right of Way And Utilities Conference Presented by Perry Johnston. Basic Acquisition Policies.

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AASHTO 2005 Right of Way and Utilities Conference Austin, Texas

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  1. AASHTO 2005 Right of Way and UtilitiesConferenceAustin, Texas Toolbox for the Negotiator

  2. Arkansas State Highway and Transportation Department Toolbox for the Negotiator AASHTO 2005 Right of Way And Utilities Conference Presented by Perry Johnston

  3. Basic Acquisition Policies • Expeditious Acquisition • Notice to Owner • Offer Just Compensation • Summary Statement • Administrative Settlements • Appraisal Waiver

  4. Administrative Settlements - 2003 • Tracts Acquired 1,413 • Condemnation 119 8% • Appraised Value 569 40% • Admin. Settlement 725 52%

  5. Administrative Settlements - 2003 • Tracts Acquired 1,413 • Admin. Settlement 725 52% • Appraised Value $ 9.9 Million • Admin. Settlements $ 1.1 Million • Total Compensation $ 11.0 Million • Increase 11.5%

  6. Administrative Settlements - 2004 • Tracts Acquired 1,555 • Condemnation 207 13% • Appraised Value 592 38% • Admin. Settlement 756 49%

  7. Administrative Settlements - 2004 • Tracts Acquired 1,555 • Admin. Settlement 756 49% • Appraised Value $ 13.9 Million • Admin. Settlements $ 1.4 Million • Total Compensation $ 15.3 Million • Increase 9.5%

  8. Administrative Settlements - Authorized Levels • Negotiator $ 500 • Section Head $ 2,000 • Division Head $ 20,000 • Chief Engineer $ 20,000 +

  9. Administrative Settlements2003 - 2004 • Total Tracts Settled 1,481 • $1 - $500 705 48% • $501-$2,000 543 37% • $2,001- $20,000 221 15% • $20,000 + 12 < 1%

  10. Legal Settlements: 2003 – 2004Consent Judgment • Total Tracts 235 • Settled by Consent 212 90% • Appraised Value $ 2.9 Million • Legal Settlements $ 0.5 Million • Total Compensation $ 3.4 Million • Increase 18%

  11. Legal Settlements: 2003 – 2004Resolved by Trial • Total Tracts 235 • Settled by Trial 23 10% • Appraised Value $ 1.0 Million • Jury Awards $ 1.1 Million • Total Compensation $ 2.1 Million • Increase 110%

  12. AHTD Appraisal Waiver • Extensive Use by AHTD • 75% of Acquisitions < $10,000 • Appraisal Requirements Not Applicable • Valuation by Someone Knowledgeable • Assessor • Local Real Estate Professional • Other

  13. Appraiser/Negotiator • Current AHTD Limit: $2,500 • Use of One Agent to Appraise and Acquire • Less Visits to the Property • One Primary Contact with AHTD • Direct Knowledge of Valuation • Explain • Justify • Preferred by Property Owners

  14. History – Appraiser/Negotiator • 1991 Pilot Program Authorized • 1993 4 Positions Authorized • 1994 1 Appraiser/Negotiator • 1995 3 Appraiser/Negotiators • 2002 4 Appraiser/Negotiators

  15. Statistics: 19941 Appraiser/Negotiator • % of Time Spent 75% • Tracts Acquired 165 • Total Compensation Paid $115,500 • Average Compensation per Tract $700 • Estimated Payroll Cost per Tract $200

  16. Statistics: June 2002 – April 20054 Appraiser/Negotiators • % of Time Spent 46% • Tracts Acquired 653 • Total Compensation Paid $1, 750,000 • Average Compensation per Tract $2,700 • Payroll Cost per Tract $225

  17. Negotiation Activities Minor Widening Project • Total Tracts 25 • Appraiser/Negotiators 2 • Preliminary Appraisal Work Jan 9, 2004 • Negotiations Complete April 4, 2004 • Tracts Negotiated 23 • Tracts Condemned 2 • Owner Contacts 89 • Project Days 39 • Payroll Hours 264

  18. Titles • Current Owner Information Furnished By Surveys Division • ROW Plans Completed • Notification Letter to Affected Owners • Appraisal and Negotiations Based on Current Owner Information • Mortgage and Lien Search Concurrent with Appraisal and Negotiations • Partial Sell-Offs, Name Changes, etc. often discovered during Appraisal and Acquisition

  19. Titles - Risk Level • $1 - $500 Current Owner Info • $501-$2,500 20 Yr. Title Search Mortgage Search • $2,501+ 40 Yr. Title Search Mortgage Search • Relocation Title Commitment

  20. Mortgage Release - Risk Level • Partial Release based on Value of Land and Major Improvements • $1 - $2,500 No Release • $2,500 + Release Required • If the Release Cannot be Obtained • Property Condemned at FMV

  21. Closings • Close in Person 70% • Close by Mail 30% • 2 Closing Agents: In Person • 1 Administrative Assistant: By Mail

  22. Contracting – Titles & Closing • 2 Closing Agents • 2 Closing Assistants • 4 Abstractors • 2 Sr. Abstractors • Contract Title Work – 10% • Workload and Project Schedules • Contract Closings – Special Circumstances

  23. Future Plans • Increased Use of Appraiser/Negotiator • Increase AHTD Limit from $2,500 to $10,000 • Phase I - $ 5,000 • Phase II - $ 10,000 • Increase Negotiations and Closings by Mail • Pilot Project – Fall 2005 • Analyze Results • Expand Program if Successful

  24. AASHTO 2005 Right of Way and UtilitiesConferenceAustin, Texas Toolbox for the Negotiator

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