SR-901-000-01
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SEP - ~89
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RMM:LAM:vc
council Meeting September 5, 1989
Santa Monica, california
TO:
The Mayor and City council
FROM:
City Staff
SUBJECT:
Resolution Adopting commercial Relocation Guidelines
For Entities Being Displace by Acquisition of Real
Property
INTRODUCTION
This staff report requests City council adoption of a resolution
approving a relocation assistance program for non-residential
entities being displaced by acquisition of property by the city.
BACKGROUND
When a pUblic agency acquires property and desires to relocate
established tenants occupying and/or leasing space within a
subject property it is required to disburse relocation benefits
in accordance with prevailing law.
specifically, State of
California Government Code Section 7267.8 requires all public
agencies to adopt rules a~d regulations pertaining to the
administration of relocation assistance, benefits and payments.
Certain residential tenant relocation assistance guidelines were
adopted by City Council on June 24, 1986 (Santa Monica Municipal
Code Sections 4850 through 4862}. However, the city has not yet
taken any similar action pertaining to non-residential entities
being displaced by city's acquisition of real property.
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SEP - 5 1989
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DISCUSSION
The proposed Rules and Regulations for Implementation of The
California Relocation Assistance Law, for non-residential
entities ("Rules and Regulations") were prepared for the city by
Pacific Relocation Consultants, a member of the state Department
of Housing and Community Development I s Advisory Task Force for
Relocation Guidelines. Pacific Relocation Consultants has been
retained by the City to implement these relocation Rules and
Regulations following City Council approval of the attached
resolution.
The Rules and Regulations for commercial tenants are designed to
carry out the following:
1. To ensure that uniform, fair and equitable treatment is
afforded persons displaced from businesses as a result of the
actions of the City in order that such persons shall not suffer
disproportionate injury as a result of action taken for the
benefit of the public as a whole; and
2 . In the acquis i tion of real property by the City, to
ensure consistent and fair treatment for owners of real property
to be acquired, to encourage and expedite acquisition by
agreement with owners of such property in order to avoid
litigation and relieve congestion in courts, and to promote
confidence in public land acquisition.
The City is required by these Rules and Regulations to provide
advisory and referral services which include the following:
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* Determination of Relocation Needs
* Replacement Site Referrals
* Assistance in Filing and Securing Benefits
Most non-residential entities displaced by the acquisition of
real property by the city are usually deemed eligible for
relocation assistance. Ineligible commercial tenants would
include: (1) Any person who, at the time of the City'S
acquisition of the real property was not a tenant or occupant in
lawful possession of the real property, and whose right of
possession at the time of moving arose after the date of the
Agency's acquisition of the real property and with knowledge of
such acquisition; or (2) unless federal law or regulations
require such a tenant to be considered a displaced person, any
non-residential tenant or occupant who moves as a result of his
breach of his tenancy agreement.
Eligible applicants receive the aforementioned relocation
assistance and are entitled to monetary compensation for costs
associated with relocation. The components of monetary
assistance are extensive and include:
* Parking/Unpacking
* Transportation
* Storage
* Disconnecting/Reassembling
* Insurance
* License/Permits
* Personal Property Loss/Replacement
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Monetary compensation is usually limited to actual and reasonable
expenses. However, depending upon the facts of each individual
relocation case, certain provisions may allow for a negotiated
1 ump sum payment based upon estimated moving expenses, or for
those eligible commercial tenants electing to receive a payment
in lieu of moving and related expenses, an in lieu settlement
payment of up to $10.000.00.
Finally, a grievance procedure for dissatisfied relocatees is
established within the Rules and Regulations to provide
opportunities for resolution of disputes regarding eligibility,
amount of compensation and property management issues to be heard
and considered by the city.
RECOMMENDATION
It is recommended that the city council adopt the attached
resolution and exhibit thereto, containing Rules and Regulations
for Implementation of Relocation Assistance to Displaced
Businesses.
Prepared by:
Peggy Curran, Director
Community and Economic Development
Linda A. Moxon, Deputy city Attorney
City Attorney's Office
Jeffrey Mathieu, Manager
Economic Development Division
Attachments:
Resolution and Exhibit
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RESOLUTION NO.
(CCS)
CITY COUNCIL SERIES
A RESOLUTION OF THE CITY COUNCIL
OF CITY OF SANTA MONICA ADOPTING
RULES AND REGULATIONS FOR IMPLEMENTATION
AND ADMINISTRATION OF RELOCATION PAYMENTS
AND ASSISTANCE FOR DISPLACED BUSINESSES,
NON-PROFIT ORGANIZATIONS AND OTHER
NON-RESIDENTIAL ENTITIES
WHEREAS, state law mandates that all public entities adopt
rules and regulations for purposes of implementing payments and
administering relocation assistance;
WHEREAS, the City council has adopted certain residential
tenant relocation assistance rules and regulations for purposes
of implementing payments and administering relocation assistance
to displaced residential tenants;
WHEREAS, the City of Santa Monica currently has no
established rules or regulations for implementation and
administration of relocation payments or assistance in connection
with the CitY'3 acquisition of commercial real property;
WHEREAS, a commercial business tenant may be eligible for
certain relocation benefits in the event of displacement due to
the Ci ty' s acquisition and use of real property occupied or
leased by such commercial business tenant;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
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SECTION 1.
In accordance wi th the requirements of the
California Relocation Assistance Law, (Government Code Section
7260 et. seq.), and consistent with the provisions thereof, the
Rules and Regulations For Implementation and Administration of
Relocation Assistance for Displaced Businesses, Non-Profit
Organizations and Other Non-Residential Entities attached hereto
as an exhibit and incorporated herein by reference, are hereby
adopted.
SECTION 2. The City Clerk shall certify to the adoption of
this Resolution and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
: attachment
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CITY OF SANTA MONICA
RULES AND REGULATIONS
_ FOR IHPLEHEN'l'ATION OP "J:'11J!'i
CALIFORNIA RELOCATION ASSIsrANCB LAW
FOR DISPLACED BOSINESSES
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ROLES AND REGuLATIONS
POR I}tPT.R'tENTATION 01" THE
CALIFORNIA RELOCATION ASSISTANCB LAW
POR DISPLACED BUSINESSES
I. [Sec. 100J
GBHBRAL
A. [Sec. 101J purpose
The purpose of these Rules and Regulations is to implement
the California Relocation Assistance Law (Government Code,
Section 7260 et seq.).
The Rules and Regulations are designed to carry
following policies of the Relocation Assistance Law with
activities of the City:
out the
respect
1. To ensure that uniform, fair and equitable treatment is
afforded persons displaced from businesses as a result of
the actic)na of the City, in order that such persons shall
not suffer disproportionate injury as a result of action
taken for the benefit of the public as a whole; and
2. In the acquisition of .real property by the City, to
ensure consistent and fair treatment for owners of real
property to be acquired, to encourage and expedi te
acquisition by agreement with Ot."I1ers of such property in
order to avoid litigation and relieve congestion in courts,
and to promote confidence in public land acquisition.
B. [Sec. 102]
Authority
These Rules and Regulations have been adopted by resolution
of the City pursuant to Section 7267.8(a) of the California
Government. Code, and are in confoDlity with the Relocation
Assistance Law and the Relocation Assistance and Real Property
Acquisition Guidelines adopted by the Department of Housing and
Community Develo~nt (the -Guidelines - ) .
c. (Sec. 103]
Bffective Date: ADolicabil~W
The effective date of these Rules and Regulations shall be
the date of their adoption by the City. Thes. Rules and
Regulations shall be applicable to all displacement and
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acquisition occurring after their adoption by the City.
These Rules and Regulations supersede any other Rules and
Regulations for Relocat~on previouslyadoptea by the C~ty,;
prov~ded however, that these Rules and Regulations shall not be
construed to apply retroactively to actions undertaken by the
City prior to their adoption.
D. [See. 104]
Extent of Relocation Payments
The City shall provide relocation assistance and shall make
all of the relocation payments required by law, including the
making of such payments financed by the federal government. In
addition, the City may make any additional relocation payments
which in the City'S opinion may be reasonably necessary under the
circumstances of the particular case to carry out the purposes of
a redevelopment plan for any redevelopment pro ject . Such
payments shall be subject to the availability of funds for such
purposes.
E. [Sec. 105]
Ezceotion from Relocation ReauireJlents
1. The requirement to provide relocation assistance and
benefits shall not apply to a purchase of property which is
offered for sale by the owner, property being sold at
execution or foreclosure sale, or property being sold
pursuant to court order or under court supervision if the
property in any of the foregoing situations is either
occupied by the owner or is unoccupied, and if the offer for
sale is not induced by City disposition, planned
condAm~ation, or redevelopment of surrounding lands, and ~f
the sales price is fair market value or less, as determined
by a qualified appraiser, and if no federal funds are
involved in the acquisition, construction, or project
development. "Offered for sale" means either advertised for
sale in a publication of general circulation published at
least once a week or listed with a licensed real estate
broker and published in a multiple listing, pursuant to
Section 1087 of the Civil Code.
2. At the time of making an offer to acquire property under
paragraph 1 the City shall notify the property owner in
writing, of the followings
(a) The City'. plans for developing the property to be
acquired or the surrounding property: and
(b) Any relocation assistance and benefits provided
pursuant to state law and the effect of selecting a
particular type of assistance or benefits described.
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F. [Sec. 106J
r,riority of Pederal Law
With respect to a federally funded project, the City ,hall
make relocation assistance payments and provide reloc~tion
advisory assistance as required under federal law. The City may
make any relocation assistance payment in an amount which exceeds
the maxLmum amount for such payment authorized by these Rules and
Requlations, if the making of such payment, or the payment in
such amount, is required under federal law to secure federal
funds.
G. [Sec. 107]
Severability
If any provision of these Rules and Regulations or the
application thereof to any person or circumstances is held
invalid, such invalidity shall not affect other provisions or
applications of the Rules and Regulations which can be given
effect without the invalid provision or application, and to this
end the provisions of the Rules and Regulations are severable.
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II.
[Sec. 200]
A. [See. 201]
DEFINITIONS
Acauisition
"Acquisition- means obtaining ownership or possession of
real property by purchase, eminent domain, or any other lawful
means.
B. [Sec. 202]
City
.City. means the City of Santa Monica, a municipal
corporation duly organized and validly existing under the Laws of
the State of California and its Charter, and any city, staff
consultants, assignees, delegates and City departments who may be
assigned the duties and responsibilities for implementing the
Relocation Assistance Law pursuant to these Rules and
Regulations.
C. [See. 203]
Averaae Annual Net Barn!.noa
.Average annual net earnings- means one-half of any net
earnings of a business before federal, state and local income
taxes, during the two taxable years immediately preceding the
taxable year in which such business moves from the real property
being acquired, or during such other period as the City
determines to be more equitable for establishing such earnings,
and includes any compensation paid by the business to the owner,
owners spouse or owners dependents during such period.
The term "owner- as used herein includes the sole proprietor
in a sole proprietorship, the principal parties in a partnership,
and the principal stockholders of a corporation, as determined by
the City. For purposes of determining a principal stockholder,
stock held by a husband, his wife and their dependent children
will be treated as one unit.
D. [Bee. 204]
Averaae IIonthl v I'nccae
-A':erage monthly incOIIl8- _&n8 gross income divided by
twelve.
B. [sec. 205]
BuII"-.. (from. Govt. Code Sec. 7260(d)
-BWli08ss. ..ans any lawful activity, except a farm
operation, conducted prf-.~11YI
1. For the purchase, sale, lea.., or rental of personal and
real property, and for the manufacture, processing, or
marketing of products, cOllllllOCli tiee or any other personal
property I
2. For the eale of services to the public;
3. By a nonprofit organization; or
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4. Solely for the purpose of Section 700 of these Rules and
Regulations, for assisting in the purchase, sale, resale,
manufacture, processing or" marketing of products,
commodities, personal property or services by the erection
and maintenance of any outdoor advertising display, whether
or not such display is located on the premises on which any
of the above activities are conducted.
G. [See. 206]
DeDaLLment
"Department" means the California Department of Housinq and
Community Development.
B. [sec. 201]
DisDlaced Business
(from Govt. Code Sec. 7260(c)
"Displaced business" means any business which qualifies as a
displaced ~erson under Section 209 hereof.
I. (Sec. 208]
DisDlaced Pa%a CoeratioD
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"Oisplaced fa:cD operation" means any farm operation which
qualifies as a displaced person under Section 210 hereof.
J.
[See. 209]
DisDt.ced Person
"Displaced person" means any person who moves
property, or who moves his personal property from real
as a result ofa
from real
property t
1. The acquisition of such real property, in whole or in part,
by the City or by any person having an agreement with or
acting on behalf of the City; or
2. A written order fram the City to vacate the real property
for public U.. orJ
3. The initiaf:ion of neqotiatior!s by the City t.o acquire the
real property.
This definition shall be construed so that persons displaced
as a result of City action receive benefits in cases where they
are c:ti.placed _ a result of an agreement with the City
includinv, but not llmited to, an owner participation agreement,
a disposition and development aqreement or an exclusive right to
negotiat.e avree-nt, with a public use where the City is
otherwi.e empowered to acquire the property to CIU.~~ out the
public us..
Except tenants or occupants of houslnq made available on a
permanent basis by the City, a -displaced- person sha.ll not
include, (1) any person who, at the tiDle of the City..
acquisit.ion of the real property, was not a tenant or occ....pant in
lawful pos.e..ion of the real property, and whoa. right of
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possession at the time of moving arose after the date of the
City's acquisition of the real property and with knowledge of
such acquisition; or (2) unless federal law or requlat~ons
require such a tenant to be considered a displaced person, any
non-residential tenant or occupant who moves as a result of h~s
breach of his tenancy aqreement.
A utility which relocates its poles, posts, wires, conduits,
cables, pipes, lines and necessary fixtures and equipment located
in, along, or under any public street, road or highway as the
result of activities in the implementation of a redeyelopment
plan is not a displaced person.
It.
[See. 210]
Economic Rent
"Economic rent" means the amount of rent a tenant or
homeowner would have to pay for a dwelling similar to the
acquired dwelling in a comparable area.
L.
[sec. 211]
Para ODerat~on
"Farm operation- means any activity conducted solely or
primarily for the production of one or more agricultural products
or cO~Qdities, including timber, for sale or home use, and
customarily producing such products or commodities in sufficient
quanti ty to be capable of contributing materially to the
operator' ~ support.
H.
[See . 212]
Pederal Project
"Federal project- means any direct federal project or any
project receiving federal financial assistance.
R.
(Sec. 2l3)
Gross Inc~
-Gross income. means the annual income from all sources of
each member of the family residing in the household who is
eighteen (18) year. of age or over, except t:ut.t income of a head
of household or hi. spouse who is under eighteen (18) shall be
included. Gross income is based on the 12-lDOnth period prior to
d).splacement. If the City dete%Dlinea, on a case by case basis
that the us. of the twelve (12) month period prior to
displacement would result in a hardship to the claimant, an
alternat.. period, actual or projected, aay be used in such
ezcept10nal a1 t.uations .
o.
[Sec. 214]
IIAftdicaDDeC1 Bousehold
"Handicapped household. means a household J.n whJ.ch any
mAmn.er is handicapped or disabled.
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p . [ See ~ 215]
lnitiation of Neaotiations
"Initiation of negotiations" means the initial written offer
to purchase made by the City to the owner of the real property to
be purchased, or to the owner's representative.
Q. [See. 216]
Mortaaae
"Mortgage" means such classes of liens as are commonly given
to secure advances on, or the unpaid purchase price of, real
property, together with the credit instruments, if any, secured
thereby, including but not limited to deeds of trust and land
sales contracts.
R~ [See. 217]
HonDrofit Oraanization
"Nonprofit organization" means a corporation, partnership,
individual or other pub~~c or private entity, engaged in a
business, professional or -nstitutional activity on a non-profit
basis, necessitating fix~ures, equipment, stock in trade, or
other tangible property for the carrying on of the business,
profession or institutional activity on the premises.
s~ [sec. 218]
OWnershin
"Ownership. means holding any of the following interests in
a dwelling, or a contract to purchase one of the first six (6)
interest.
1. A fee title;
2. A life estate;
3. A 50-year le.se;
4~ A lease with at least twenty (20) years to run from the
date of acquisition of the property;
5. A proprietary interest in a cooperative housing project
which includes the right to occupy a dwelling;
6~ A propri.tary interest in a mobile home;
7. A leasehold interest with an option to purchase.
In the ca.e of one w~o has .ucc::~ed to any of the foregoing
interest by devis., bequest, inheritance or operation of law, the
tenure of ownership, but not occupancy, of the succeeding owner
shall include the tenure of the preceding owner.
~. [Sec. 219]
Person
.person. mean. any individual,
corporation a..ociation.
family,
partnership,
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u. [Sec. 220]
Personal Prooertv
"Personal property" means tangible property which
situated on a real property vacated or to be vacated
displaced person and which is considered personal property
non-compensable (other than for moving expenses) under the
law of eminent domain.
is
by a
and is
state
In the case of a tenant, personal property includes fixtures
and equipment, and other property which may be characterized as
real property under state or local law, but which the tenant may
lawfully and at his election determine to move, and for which the
tenant is not compensated in the real property acquisition.
In the case of an owner of real property, the determination
as to whether an item of property is personal or real shall
depend upon how it is identified in the closing or settlement
statement with respect to the real property acquisition.
v. [Sec. 221]
Poat-Acauisition Tenant
"Post-acquisition tenant" means a tenant who lawfully
commences to occupy property only after the City acquires it.
w. [Sec. 222]
preoaid Bxnensea
"Prepaid expenses- means itam. paid in advance by the seller
of real property and pro-rated between such "seller and the. buyer
of such real property at the close of escrow including, but not
limited to, real property taxes, insurance homeowners I
association dues and assessment payment.
x. [Sec. 223]
Public Use
"Public us.- meana a us. for which real property may be
acquired by eminent domain.
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III.. [See. 300]
RELOCA1'IOIf ADVISORY ASSISTANCE
(froa Govt. Code Sect~on 7261)
A.
[Sec. 301)
Advisorv Asststance to be Prov~ded
bv the.Citv .
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The City shall provide relocation advisory assistance to any
resident or business displaced because of the acquisition of real
property by the City. In addition the City may provide
relocation advisory assistance to any person occupying property
Lmmediately adjacent to the real property acquired and who the
City determines is caused substantial economic injury because of
the acquisition.
The relocation advisory assistance to be provided by the
City shall include such measures, facilities and/or services as
may be necessary or appropriate in order to:
Fully inform eliqible persons as to the
relocation benefits and assistance and
requirements therefore, as well as the
obtaining such benefit. And assistance;
2. Determine the extent of the need of each eligible person for
relocation assistance;
1.
availability of
the eligibility
procedures for
3. Provide current and continuing information on the
aVAilability, prices, and rentals of comparable sales and
rental hou.inq, and comparable commercia.l properties and
locations, and as to security deposits, closing costs,
typical down payments, interest rates and ter.ms for
residential property in the area;
Aasiat each eligible, displaced person
applications for payments and benefits;
5. Aaaiat each eligible, displaced business in Obtaining and
becoming established in a suitable replacement location with
4. minimwa of delay and 10.8 of earnings;
to complete
4-.
6. Provide any .ervices required to insure that the relOCAtion
proce.. doe. not result in different or separate treatment
on account of rac." color" religion, ancestry, national
or!g1D, ..x, ..xual orientation, age, AIDS, marital status
or other arbitrary ci.rculllatances. Such relocation process
.hall .at1efy the requiremen't8 of Title VI of the Civil
Rights Act of 196', !litl. VIII of the Civil Right8 Act of
1968, ~be Unruh Civil Rights Act ana the California Pair
Hou8ing Law;
7. Supply to eligible per80ns information concerning federal
a.nct atate housing- progr"III., disaster loan and other progr"'~.
administered by the Small Busine.. ,dmfnistration, and other
federal or state programs offerlnq assistance to displaced
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persons;
8. Provide other advisory assistance to eligible persons to
min~ize their hardships, such as counseling and referrals
with regard to housing, financing, employment, train~ng,
health and welfare;
9. Inform all persons who are expected to be displaced about
the eviction policies to be pursued in carrying out the
project.
B. [Sec. 302] Information Proaram
1. [Sec. 303] General Ynformation
The City shall establish and maintain an information program
utilizing meetings, and other mechanisms, for keeping occupants
of the property which the City is acquiring informed on a
continuing basis about its relocation program. The criterion for
selecting among various alternative mechanisms shall be the
likelihood of actually communicating information to such persons.
Legal publications, legal ads in local newspapers of general
circulation and similar means are inadequate if they are likely
to go unnoticed.
The City shall provide technical assistance as necessary to
interpret elements of the City's Relocation Plan and other
pertinent materials.
2.
[Sec. 304]
Personal Contoct
As soon as practicable following the initiation of
negotiations to acquire a parcel of real property the City shall
contact each eligible person occupying such property to carefully
explain and discuss fully with such person the extent of
relocation payments and assistance that may be made available by
the City. Such contact shall be direct and personal except where
repeated .!fforts indicate that such contact is not possil'le.
Such contact may be made at the time and .s part of the inte!:View
to ascertaLn relocation needs conducted pur8uant to Section 310.
All persona shall he advised and encouraged to contact the City's
relocation conaultant for infor.mation and as.istance. The City
shall ..!ntain penonal contacta with occupants of the property
to the 1IlA1d-wa extent practicable.
3.
(Sec. 305]-
XnfoDlation State.entl
Relocation Assistance
As soon aa practicable following the initiation of
negotiationa to acquire a parcel of real property the City shall
provide each occupant of auch property with. written statement
containing the following information I
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1. A qeneral description of the nature and types of activities
that will he undertaken and iclentification of the
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displaeement area involved, including a diagrammatic sketch
of such area:
2. A stAtement that City action may result in displacement, but
that to the greatest extent practicable, no person lawfully
occupying the real property will be required to move w~thout
at least 90 days' written notice from the City;
3. A general description of types of relocation payments
available, including general eligibility criteria, and a
caution against premature moves that might result in loss of
eligibility for a payment;
4. Identification of the City's relocation program and a
description of relocation services and aids that will be
available;
s. Encouragement to contact the City's relocation consultant
and cooperate with staff, and the address, telephone nnmher
and hours of the relocation consultant;
6. A statement to businesses that the City will provide every
possible assistance in locating relocation accommodations,
including consultation with the Small Business
Administration and other governmental agencies which might
be of assistance:
7. A statement to businesses describing the requirement for
prior notification to the City of the business concern's
intention to move;
8. A summAry of the City's eviction policy;
9. A statement describing the CitY'8 grievance procedure, its
- purpose And how it may be used.;
10. Any additional information that the City believes would be
helpful. Where appropriate, separate information 8tatement8
shall be prepared for r~~idential and non-residential
occupant..
4.
[Sec. 306]
IIotic. of Eliaibllitv Status
In addition to disseminating general information of the type
described. in this Section 302, the City shall provide each
occupant of the property with individual, written notification of
thi8 elIgibilit.y stat.us as 800n as it bas been established.
5.
[Sec. 307]
Lanauaae of InfoJ:llatioll Katerial
Information aaterial shall be prepared in the language (s )
most easily understood by the recipients. In displacement areal
where there are .iqnif~cant concentrations of persona who do not
read, write, or understand Bnglish fluently, the native language
of the people ahould be used and all informational material
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should be provided in the native lanquage(s) and English.
6.
[Sec. 308]
Method of Delivery of
Informational Material
To assure rece~pt of the informational material, the City
shall arrange to have the material either hand-delivered to each
occupant of the property with a request for a written receipt, or
sent by certified mail, return receipt requested.
c.
[Sec. 309)
Determination of Relocation Needs
1.
[Sec. 310]
Interviews
As soon as practicable following the initiation of
negotiations to acquire a parcel of real property the City shall
interview each eligible person occupying such property to obtain
information upon which to plan for housing and other
accommodations, as well as counseling and assistance needs. The
interview shall be by direct, personal contact, except where
repeated efforts indicate that such contact is not possible. The
City shall carefully explain and discuss fully with eacW person
interviewed the purpose of the interview.
When a person cannot be interviewed or the interview does
not produce the information to be obtained, reasonable efforts
shall be made to obtain the information by other means.
A. [sec. 311]
Information to be Obta~ned
The City in its best efforts shall obtain the following
information from eligible persons:
( 1)
(2)
(3)
(4)
Income 1
Location of job and factors limiting accessibilitY1
Area of preferred relocation;
.
Ownership or tenant. preference 1
(a) locational factors including, among others, public
utilLties.
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b. (Sec. 312) CooEtUnation with Other AGencies
In order to avoid duplication of effort and to ensure that
nece.sary information is available at the appropriate time, the
City shall coordinate its interview activities with the survey
activities, if any, of other agencies. Gathering of data.
pertinent to Bocial service referrals of eligible persons shall
be planned in cooperation with Bocial service agencies. _
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c.
(See. 313]
Interview after Person Moves
Without Notification
If the City fails to conduct the required interview of any
eligible person in a tLmely and effective manner, the City shall
make every reasonable effort to identify, locate and interview
such person who has moved so that his relocation needs can be
determined.
2.
(See. 314)
Relocation Records
Based on information obtained during interviews and from
other sources as applicable, the City shall prepare and maintain
an accurate relocation record for each person to be displaced.
The record shall contain pertinent information concerning the
persons to be displaced and the assistance deemed to be
ne<:essary. A displaced person (or any per30n authorized in
writing by each person) shall have the right to inspect such
documents containing information relating to him to the extent
and in the manner provided by law.
3.
[See. 315]
Uodatina Information
Information pertaining to the relocation needs of eligible
persons occupying each parcel of real property with respect to
which the City has initiated negotiations for acquisition shall
be up-dated at least annually. Eligible persons shall be
encouraged to brin; any change in their needs to the attention of
the City.
D.
[Sec. 316)
Relocation Site Office
The City may, .a it de.m~ necessary, establish a site office
which is acce.sible to all area businesses who may be displaced
to provide relocation assistance. Office hours shall be
scheduled to accommodate persors ~nable to visit the office
during nomal business hours. The City may also mue provision
for ..eting with displaced persons in tbeir homes or places of
business.
B.
[Sec. 317)
Contraetina for Relocation SerTiees
The City _y enter.into a contract with any ind.ividual,
fixm, a..ocLation, corporation or governmental city having an
established organization for conducting relocation a8si8tance
programs, for the purpose of provlc:1ing relocation advisory
a88istance.
- 13 -
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F.
[Sec. 318)
Coordination of Relocation Assistance
The City shall coordinate its relocation assistance program
with other work necessitating displacement of persons, and with
act1vities of other public entities in the City or nearby areas,
for the purpose of planning relocation activities and
coordinating the availability of replacement dwelling resources
in the implementation of the City'S relocation assistance
program.
- 14 -
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IV. [Sec. 400]
In" ..QCA"l'ION PLARS
As soon as practicable following the initiation of
negotiations to acquire a parcel of real property in any
displacement area required for site ~provements, disposition and
development agreements, part~cipation agreements or any other
activity that will result in displacement, the City shall prepare
a Specific Relocation Plan. When the City's action will only
result in an insignificant amount of non-residential
displacement, the City is not required to prepare such a Specific
Relocation Plan.
- 15 -
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v. {sec. 500]
pRT~~TION PA~S TO DISPLACED BUSIHBSSES
A.
(Sec. 501]
pavments Reauired
-- -
The City shall compensate the owner of a displaced business
for the expenses described in Section 502 or 506 and in Section
513. Whenever the acquisition of real property used for a
business causes the business to move from other real property
upon which the same business is conducted, or to move its
personal property therefrom, such business shall receive payments
for moving and related expenses under Section 502 in connection
with its move from such other real property.
B.
[Sec. 502]
Jfo.vina BXDensea:
Lo8S of Prooertv Search Bzoenses
1.
[Sec. 503)
Actual Reasonable HovinG Bzoenses
A displaced bQsiness shall be compensated for the actual
reasonable expenses incurred for moving the business including
moving personal property. In all cases the amount of payment
shall not exceed the reasonable cost of accomplishing the
activity in connection with which . clata has been filedL
The moving and related expenses for which claims may be
filed shall includes
a. Transportation of persons and property not to exceed a
distance of fifty (50) miles from the site from which
the business was displaced, except where the City
determines that relocation beyond such distance of
fifty (SO) miles is justified;
b. Packing, crating, unpacking, and uncrating personal
property;
c. Such storage of personal property for a period
generally not. to exceed twelve (12) months, as
deteDL1.ned by the City to be necessary in connection
with relocationJ
d. Insurance of personal property while in storage or
tr~i1:1
e. TIle reasonable replacement value of property lost,
.tolen, or ....~JIlIged (not through the fault or negligence
of the displaced busines., iu agents or employee) in
the proce.s of aoving, where in8urance covering such
10.., theft, or "'~ftl.ge 1s not naso!':-!Ilhly available:
f. The co.t of disconnecting, cliau.ntling, removing,
re...8IIbl1ng, reconnecting and reinstalling machinery,
equipment, or other peraonal property (including goods
and inventory kept for aale) not acquired by the Ci ty,
- 16 -
.
.
including connection charges imposed
utilities for starting utility service:
g. The cost of any addition, ~provement, alteration or
other physical change in or to any structure or its
premises in connection with the reas8embl~nq,
reconnection, or reinstallation of machinery,
equipment, or other personal property: the cost of any
addition, improvement, alteration or other physical
change otherwise required to render such structure,
premises, or equipment suitable for the business use;
the cost of any addition, improvement, alteration or
other physical change necessary to bring such structure
or premises into compliance with applicable building
and safety codes: the cost of modifying the machinery,
equipment, or other perIanal property to adapt it to
the replacement location or to utilities available at
the rapl 'ement locAtion or the cost of modifying the
power su; ly: cla.ima for reimhursement of all such
costs sha._ be subject to the following limitations:
by
public
(1) The cost shall
displacement:
(2) Retmhursable costs shall be reasonable in amount:
(3) The cost shall be found by the City to be required
by la.w or ordinance or to be otherwise necessary
to the re-establishment of the displaced business~
be
directly
related
to
(4) The cost could not be avoided or substantially
reduced at an alternate available and suitable
site to which the business was referred;
(5) The City shall deduct, on the basis of a
reasonable ..tJ..mate, the amount, if any, realized
by the ciisplaced businesa concern as compensation
for comparable additions, improvements,
elterationa or other physical chanqes to the
structure and premises acquired, a8 part of the
pa~nt made for the acquisition of such structure
and preaJ.aes J
h. ~h. coat of any llcens., pe%mit, or certification
required by a cU..placed businea. concern to the extent
such coat la necessary to the re-establishment of ita
operatLon at a new location,
i. ~ reasonable coat of any profes.ional services
(includlnq but not limited to architects', attorneys' ,
or engineers' fees, or consultants" charges) necessary
for planning the move of personal property, aovi - q the
personal property, or _1natllllation of re xated
personal property at the replacement slteJ
- 17 -
.
.
j .
Where an
connection
replaced
amount not
item of personal property which is used
with any business is not moved but
with a comparable item, reimnursement in
to exceed the lesser of:
in
is
an
(1) The reasonable replacement cost of the personal
property, minus net proceeds (if any) realized
from the sale of all or part of the property,
(2) The estimated reasonable cost of moving the
personal property, as determined by the City.
In order to obtain a payment under this paragraph, the
displaced business shall make a bona fide effort to sell the
personal property for which the payment is claimed at the
highest price offered after reasonable efforts have been
made over a reasonable period of time to interest
prospective purchasers. The displaced business shall be
re!mnursed for the reasonable costs of such effort to sell
the tangible perso~l property.
k. The reasonable cost of advertising the move, and of
obtaining replacement business cards, stationary, and
business for.ma customarily kept by comparable business
enterprises.
Where, in the judgment of the City, the cost of DlOvinq a~y
item of personal property of low value and high bulk which 1.S
used in connection with any business WQuld be disproportionate in
relation to its value, the allowable reimhursement for the
expense of moving such property shall not exceed the difference
between the cost of replacine; the same with a comparable item
available on the market and the amount which would have been
rece! ved for. such property on liquidation. This provision may in
appropriate situations be applied to Claim. involving the moving
of junk yards, stockpiles, sand, gravel, IIlinerals, metals, and
similar property.
A displaced business which conducts a lawful activity
primarily for a.sisting in the purchase, sale, resale,
manufacture, proce.sing, or marketing of products, commodities,
personal property, or services by the erection and maintenance of
outdoor advertising displays is entitled to payment for the
reasonable coat of .ovinq ~uch displays or their in-place value,
whichever i. l..ser.
~1la1 Direct Losses of !'alloible
Personal PL'O\'N!rtv
A elisplaced business shall be compensated for the actual
direct lo...s of tangible personal property of the displaced
business attributable to moving or eliscontinuing such business.
-rile total amount of the payment of the City for such losses shall
not exceed an amount equal to the esttmAted reasonable cost of
2.
[Sec. 504)
- 18 -
.
.
movinq the personal proper~y, as determined by the City. Subject
to such limitation, the actual direct loss of personal property
for which claims may be filed shall be determined by appraisinq
either:
a. The in-use value (fair market value of the p~rsonal
property for continued use at its location pr~or to
displacement) minus net proceeds realized from the sale
of all or part of the property~ or
b. The in-use value of personal property, in the event the
property cannot be sold and is abandoned.
The actual direct loss of personal property shall be
computed and based on an appraisal obtained by either the City or
the displaced business, and approved by the other.
In order to obtain a payment for the actual direct loss of
personal property, the displaced business shall make a bona fide
effort to sell the property for which the loss is claimed at the
hiqhest price offered-after reasonable efforts have been made
over a reasonable period of time to interested prospective
purchasers. The reasonable cost of an effort to sell the
personal property shall be added t the determination of lOBS
under this Section.
In the event personal property which is sold or abandoned is
promptly replaced with a comparable item, or payment for the
actual direct loss of such personal property shall be made to the
displaced business by the City; instead, the displaCed business
shall be paid the amount specified in Section S03j.
3.
[Sec. 505J
Actual Reaso".~hle Bzoenaefl ~
Searchina for a ReDlacelMnt Business
A displaced business shall be compensated, for actual
reasonable expenses incurred in searching for a r~placement
business up to a maximum refmharaem.ent of $1,000, including
expenses incurred for I
a. ftauportation;
b. Heals and lodging away from home;
c. Time spener in search1nq, based on an hourly rate
of the salary or earnings of the displaced
busine.. or its representative, but not to exceed
$10.00 per hour;
d. peea paid to a real estate agoent, broker, or other
profe..ional to locate a replacement business.
- 19 -
.
.
c.
[Sec. 506]
Alternate paYments
1.
[Sec. 507)
Determ.i.nation of Pavments
a.
[sec. 508]
Am9unt of Payment
A displaced business which moves or discontinues, and which
meets the eligibility requirements of Section 710, may elect to
receive and shall be paid, in lieu of the payments for which it
is otherwise entitled under Section 702, a payment equal to the
average annual net earnings of the business, except that such
payment shall not be less than $2,500 nor more than $10,000.
Said dollar limitation shall apply to a single business
regardless of whether it is carried on under one or more legal
entities.
Deteraination of H1DIber
of Businesses
In deter.mininq wh~ther one or more legal entities, all of
which have been acquired, constitute a single business, the
following factors among others, shall be considered:
b.
[Sec. 509]
( 1) The extent to which the same premises and
equipment are shared;
(2) The extent to which- substantially identical or
intimately interrelated business functions are
-pursued an4 business and financial affairs are
cc:mnn(ngled;
(3) The extent to which such entities ~e held out to
the public, and to those customarily dealing w~th
such entitie., as one business,
(4) The extent to which the same person or closely
related persons own, cODtrol, or manage the
affairs of the entiti...
2. [sec. 510] BliQibl1~tv
a. [sec. 511] Bwlines. tOther thaD.
lfonorofit Oraaniaation)
A displaced busines. (except a nonprofit organization) is
eligible for the payment providecl for in Section 508 only if the
City detemJ.nea thatl
( 1)
The buatn.s. cannot be relocated without a
substant1al 108S of ita ~8t1n9 patronage, based
on a consideration of all pertinent circumstances
includ1ng such factors.a the type of business
conducted, the nature of th. cllentele, the
relative J.m:portance to the ciisplaced Dusin... of
- 20 -
(2 )
( a)
(b)
(C)
.
.
its present and proposed location, and the
availability of a suitable relocation site;
The business is rtot part of a commercial
enterprise having another establishment which is
not being acquired for a project and which 1S
enqaged in the same or similar business. Whenever
the sole remaining facility of a business ~hich
has been displaced from its principal location:
Has been in operation for less than two (2) years;
or
Has had average annual gross receipts of less than
$2,000 during the two (2) taxable years prior to
the displacement of the major component of the
buaines8; or
Has had annual net earnings of less than
during the two (2) taxable years prior
displacement of the major component
business;
$1,000
to the
of the
the remaining facility will not be considered another
"establishment" for the purposes of this Section;
(3) The displaced busines..
(a) Had average annual gross receipts of at least
$2,000 during the two (2) taxable years prior to
displacement = or
(D) Had average annual net earnings of at least $1,000
during the two (2) taxable prior to displacement;
or
In any ca.e the City determines that the two (2) year period
prior to aisplacement 1s not representative of the average
receipts, earnings, or income, it may aake use of a more
representative period.
If a displaced business does not meet any of the above
conditioD8, the City may nevertheless pay it the $2,500 IIl1nimWll
amount, providecl 'that the City otherwise determines that such
business 1. 1D. fact a bona. fide business.
~.
[Sec:.. 512J
BoDDrofi~ Oraanisati9ft
In the case of a nonprofit organization, no payment shall be
made under Section 508 unless the City deteza1nes thatt
(1)
The nonprofit organization cannot be relocated
without a substantial loss of its ezisting
patronage (the term -patronage- as used herein
- 21 -
.
.
includes the membership, persons, co~qnitYI or
clientele served or affected by the activities of
the nonprofit organization); and
(2) The nonprofit organization is not a part of an
enterprise having at least one other establishment
not being acquired which is engaged in the same or
similar activity.
Business ~upplement Payment for
C~~ain Business Occuoants
The City may make payments in accordance with the provisions
of Addendum No. 1 to certain business occupants. Addendum No. 1
is attached hereto and incorporated herein by this reference.
D.
[Sec. 513]
,
- 22 -
.
.
VI. [Sec. 600] CLAIM AND PAYHEN"l' PROCEDURES
A. [Sec. 601] Pillna of ClafmR
All claLms for relocation assistance and payments filed with
the City shall be submitted within eighteen (18) months of the
date on which the ClA1m4nt receives final payment for the
property or the date on which claimant moves, whichever is later.
The City may extend this period upon a proper showing of good
cause.
B.
[See. 602]
DQcumentation in SUDoort of Claim
1.
[See. 603)
JIovina Bxoenses
a.
[Sec. 604]
Coaaerclal Hove.
Except in the case of a displaced resi nt or displaced
business electing to -~lf move, a claim for ~~yment )f actual
reasonable moving expenses shall be supported by a bil~ or other
evidence of expenses incurred.
Each claim in excess of $1,000 for the coats incurred by a
displaced business in moving the business operation shall be
supported by competitive bids in such n~~~r as are practical.
If the City dete~ines that compliance with the bid requirement
is impractical, or if estimates in an amount less than $1,000 are
obtained, a claim may be supported by estimates in lieu of bids.
b.
[Sec. 605)
Self IIoves
without documentation of movinq expenses actually incurred a
displaced resident or displaced business electing to self move
may submit a claim for IDOving expenses to the City in an amount
. not to exceed the estimated coat of moving c~Q1:cially. The
estimated cost of moving commercially shall be based on the
lowest responsible bid or estimate from at least two (2)
reputable moving firma submitted by the cl~fmA~t to the City
prior to the ~e. The estimat~d cost of moving commercially
shall include the coat, if any, of obtaining bids or estfmAtes.
c.
(Sec. 606J
ZZ9lU)tion fro-. Public Utilities
C~ssion Reaulatiol\8
Whenever the City must pay the actual cost of IIOving a
displaced person the colits of such move shall be exempt from
regulation by the Public Utilities Commission. The City may
solicit competitive bids from qualified bidders for perfoalAnce
of the work. Bid. sw.J.tted in respolUl8 to such solicitations
shall be exempt fram regulation by the Public Utilities
CODIIIlission.
- 23 -
.
.
2.
[See. 607]
LoS8 of Prooertv
A claim by a displaced business for payment for the actual
direct loa- of tanqible personal property pursuant to Section 704
shall be supported by written evidence of 1088 which may include
appraisals, certified prices, bills of sale, receipts, canceled
cnecks, copies of advertisements, offers to sell, auction
records, and other records appropriate to support the claim or
the City may agree as to the value of the property left in place.
3.
[See. 608]
Proof of BarninGs
If a displaced business elects to receive an alternate
payment pursuant to Section 706 of these Rules and Regulations,
the business shall provide proof of its earnings to the City.
Proof of earninqs may be established by income tax returns,
financial statements and accounting records or similar evidence
acceptable to the City.
c.
[Sec. 609]
Pavment of Movina Bxoenses
1.
(See.. 610]
Advance Pa'VJlent
An eligible displaced business may be paid for his
anticipated moving expenses in advance of the actual move. The
City shall provide advance payment whenever later payment would
result in financial hardship. Particular consideration shall be
given to the financial limitations and difficulties experienced
by low and moderate income residents and small business
operations.
2.
[Sec. 611]
Direct ,av.ent
By prearrangement between the City, the displaced business,
and the mover, evidenced in writing, the cla h"It'lt or the mover
may present an unpaid moving bill to the City, and the City may
pay the mover directly.
3.
[Sec. 612J
Jlethoda Rot Bzclus.ive
The specific provisions of these Rules and Regulations are
not int.nded to preclude the City's reliance upon other
reasonable ..ana of effectinq a move, includinq contractinq moves
and arran~J.n~ for ...i91UD8nt of moving expense payments by
displaced bu.in......
Aasistance and PaYIIeDts tq
PersoDS Hovin~ v.itbout Bo~l,ce
If the City fails to inform any eligible displaced business
of the relocation payments and assistance that may be made
available by the City in a timely ancl effective manner, the City
shall make every reasonable effort to identify and locate such
business who has moved. Eligible ciisplaced businesses who move
D.
(Sec. 613]
- 24 -
.
.
without offers of assistance and benefits, after the City .was
required to offer assistance and benefits, shall be provided all
such assistance and payments for which they otherwise qualify.
When appropriate, the City shall also compensate such persons for
additional costs incurred as a result of the City's failure to
provide tLmely notice and offers of relocation assistance and
benefits.
E.
[Sec. 614]
Termination of Relocation Assistance
The City's relocation obligations cease when the business
concern has received all assistance and payments to which it is
entitled and has been successfully relocated or has ceased
operations.
- 25 -
.
.
VII
(sec. 7001
GRIEVANCE PROCEDURB
A.
[Sec. 701]
Riaht of Review
Any person who belLeves h~self aggrieved by a determLnation
as to eligibility, the amount of paYMent, the failure of the City
to provide comparable permanent or adequate temporary replacement
housing, or the City's property management pr.sctices may, submit
his claim for review .snd reconsideration by the City in
accordance with the procedure hereinafter provided.
B.
(Sec. 702]
Informal Oral presentation
A complainant may request an informal oral presentation to
the City Manager of the City or to City .Manager's designee. The
right to a for.mal review and reconsideration shall not be
conditioned upon requesting an informal oral presentation.
The City Manager, within 15 days of the request by the
complainant for an informal oral presentation, shall hold a
conference with complainant for that purpose and afford the
complainant the opportunity to make such presentation. The
complainant may be represented by an attorney or other persons of
his choosing. This oral presentation shall enable ~he
complainant to discuss the claim with the City Manager of the
City or a designee having authority to revise the initial
dete:rmination on. the claim. The City Manager shall make a
s",m'l'l~ry of the matters discussed in the oral presentation to be
included as part of the City'S file.
The City Manager shall notify the oomplainant in writing of
the determination within 15 days of the oral presentation.
If the City Manager deniell or refuses to review or to
reconsider a claim, the C.1ty -Manager's notification to the
claimant of this deeeDlination shall inform the claimant of the
reasona a.r.'" the applicable procedure for obtaining review of the
decision.
c.
[Sec. 703J
Reau~st for !'Q~J. }teview
and. Recons.1deratioD
Within 30 da)'1l after the mailing of the decision of the City
staff .. pzovided herein or the decision of the City Kanager
followiDg an oral preaenUtion of the gri8Y....~~. .. hereinabove
provided, a complainant..y file a written ~e.t for formal
review and recouideratloD by the City Council. !rhe cClaplainant
aay include the request to review any .t&~Dt of facta within
the complainant:.'. Jcnowled.qe or belLef or o~~~W'" -.aterial which llUty
have a bearing on the appeal. upon a shoving of goo<l cause, the
t1.ae w.1thin which to file an appeal _y be ezteuded by the City
Kanager.
'lb. City Council ahall consider evexy agqrievecl person" a
complaint regardless of fOal, and. ahall, if necessary, provide
- 26 -
.
.
assistance in preparing the written request for review.
,
D.
[See. 704]
Notice of Jlearina and Procedures
The City Manager shall set the request for review and
reconsiderAtion or hearing within 15 days of receipt thereof, and
notify the complainant in writing of the date of hearing_ The
City Manager shall inform the complainant of the right to be
represented by an attorney, to present the case by oral or
documentary evidence, to submit rebuttal evidence, to conduct
such cross-examination as may be required to a full and true
disclosure of facts, and to seek additional review once
administrative appeal has been exhausted.
E.
(Sec. 70SJ
Review bv City Councilor its Desiqnee
The City Councilor its designee shall promptly hear all
complaints brought by any agqrieved person of a redevelopment
project area relating to relOCAtion, And ShAll determine if the
City has complied with the provisions of Chapter 4 of the
California Community Redevelopment Law pertaining to relocation,
the relocation assistance law and guidelines, these guidelines,
and, where applicable, with Federal law and requlations.
The City Councilor its designee shall review and consider
the initial determination of the City's Btaff or that of the CIty
Manager and base its decision on the following a
(1) All applicable rules and regulations;
(2) The reasons given by the complainant for
requesting review and reconsideration of the
claimJ
(3) Any additiona~ written or relevant documentary
materia~ submitted by the complainant;
(4)
Any further infomation which the City Council
its designee, in its discretion, obtains
request, investigation or research, ~Q insure
and full review of the claim.
or
by
fair
P.
[sec. 7061
Pl:nd.1nas and Rec~nda,tJODS by
Citv Councilor its Desianee
The Ci~ ComIC11 or ~ts de.ignee ahall prepare fbdi"gs and
recOJlllll8ndatlou aDd tranamit the a... to the City. A copy
thereof ahall be aaJ.led to the complainant. The City Councilor
its designee .hall i..u8 its fJ.nd.iDqa and recOla8ndatioJUI within
three weea ot the conclusion of the hearing. In the cas. of a
finding of cUnd..al for untiDIeline8s or for aAY other reason not
based Oft the merite of the elaa, the findings and rec.,.-andation
shall be iaauK within 10 days of the telPfnatJ.on of 't.he hearing.
- 21 -
.
.
The findings and recommendations of the City Councilor its
designee shall include, but shall not be l~ited to:
(1) Whether the City has complied with State law and
where applicable with Federal law, pertaining to
relocation;
(2) The recommendations of the City Councilor its
designee, including any rec~mmendation for
modification or reversal of the City Manaqer#s or
his designee's initial determination;
(3) The factual and legal basis upon which the
findings and recommendations rest, including any
pertinent explanation or rationale;
G.
[Sec. 701]
Joint C01IIPlainants_
Where more than one person is aggrieved by the failure of
the City to refer them to comparable permanent or adequate
temporary replacement housing the complainants may join in filing
a single written request for review. A determination shall be
made as herein provided for each of the complainants.
H.
[Sec. 708]
RiGht to Counsel
Any aggrieved party has a right to representation by legal
or other counsel at his expense at any and all stages of the
grievance proceedings.
I.
[sec. 709]
Review of Piles bv ClaiJlllant
Except to the extent that confidentiality of material is
protected by law or its disclosure is prohibited by law, the City
shall pe.ndt the . claimant to inspect all files and records- .
bearing upon his claim or the prosecution of the cl~i~Ant'8
grievance. The City may impose reasonable conditions on such
righ~ to inspect. If 6 claimant is improperly denied acce=s to
any relevant material bearing on the claim, such Jl4terial may not
be relied upon in reviewing the initial detendnation.
J.
(S8c. 710]
Rac~Ildat.ion. bv fil.l%d PaL.."
Upon agreemen~ between the claimant and the City, a mutually
acceptable third party or parties I114Y review the claw and make
ac1visory J:eCOIIIIDendatlolU1 thereon to the City for its final
detezminat!oll. In reviewing the claia and maJdQ9 recoaaendationa
to the City. the th1rcl party or parties shall be guided by these
Rul.. and Regulations.
K.
[Sec. 711)
Bff~ of DeVS.....fl)Atioll on Other Persons
The principles est.ablished in all d,teDlinatioDS by the City
shall be consiclered as precedent for all eligible persons in
s h,," lar situations regardless of whether Qr DOt a person bas
- 28 -
.
.
filed a wrLtten request for review. All written determinations
shall be kept on file and available for public review.
L.
[Sec. 713]
Judicial Review
Nothing in these Rules and Regulations shall in any way
preclude or lLmit a claLmant from seekinq judicial review of h~s
claim upon exhaustion of such administrative remedies as are
available.
- 29 -
.
.
VIII. [Sec. 800J
ACOOISITION PRACTICES
Acauisition of Prooertv bv Neaotiation
(from Govt. Code Sec. 7267 et seq.)
The City shall make every reasonable effort to acquire
property by negotiation and to do so expeditiously. In order to
do so the City shall, to the greatest extent practicable, be
guided in its property acquisition practices by the provisions of
this Section 800. Provided however, that the provisions of
Sections 802, 803, 806 and 808 shall not apply to the acquisition
of any easement, right-of-way, covenant, or other non-possessory
interest in real property to be acquired for the construction,
reconstruction, alteration, enlargement, maintenance, renewal,
repair, or replacement of subsurface Bewers, waterlines or
appurtenances, drains, septic tanks, or stor.m water drains.
A.
[Sec. 801]
B.
[Sec. 802]
Apnraisal of Prooertv
Before negotiations are initiated to acquire property, the
City shall have the property appraised, giving the owner or his
designated representative an opportunity, by reasonable advance
written notice, to accompany the appraiser during the inspection
of the property.
c.
[Sec. 803]
Notice of Decision ~o ADDraise
1.
(Sec. 804)
Contents of Ho~ice
The City shall provide the owner with written notice of
decision to appraise the real property as 800n as possible
the decision to appraise has been reached. The notice
state, as a minimum, tha~1
its
after
shall
a. A specific area is being considered for a particular
public use;
b. 'lhe owner.. .,roperty 1s located within t.he area;
c.
The statu. of the City's decision on whether or not
acquJ.re ~h. property, including a 8ta~ement that
deteraination has been made by the City to acquire
property, if such be the case;
..
to
no
the
d. A stat_nt that the owner or his representative
(designated in writinq) shall be given the opportunity
to accompany each appraiser durag his 1nspectlon of
the property.
At
appraise
%mO%JUltJ.oD Sbl~--ntl
~Lz Acqu1ait1.cm ~~..;A:edu%es
the t1JDe the City notifies an 0WDeJ: of ita elec1slon to
real property it shall furniah the owner with an
2.
[Sec. 80S]
- 30 -
.
.
explanation of it~ land acquisition procedures, describing in
non-technical, understandable terms the City's acquisition
procedures and the principal riqhts and options available to the
owner. Such statement shall inform the owner of the property
that if the City decides to acquire the subject property certa~n
prescribed land acquisition procedures will be followed and the
statement shall include the followinq explanations:
a. A description of the basic objective of the City's land
acquisition proqram and a reference to the availability
of the City's statement coverinq relocation benefits
for which an owner occupant may be eliqiblei
b. A statement that if the acquisition of any part of the
real property would leave the owner with an uneconomic
remnant, the City will offer to Acquire the uneconomic
rAm~ant, if the owner so desires;
c. A statement that, if the owner of real property is also
the owner of a business conducted on the real property
to be acquired, or on the remainder, he has a possible
right to compensation for loss of goodwill. The City
shall include a copy of the pertinent provisions of the
F,mi_nent Domain Law (Code of Civil Procedure, Section
1263.510 et seq.);
d. A statement that if the owner is not satisfied with the
City's offer of just compensation he virl be given a
reasonable opportunity to present relevant material,
which the City will carefully consider, and that if a
voluntary agreement cannot be reached the City, as soon
as possible, will either institute a formal
cond-"4tion proceedin9 a9ainst the property or abandon
its intention to acquire the property, giving notice of
its intention not to acquire:
e. A statement that, if arrangements are made to rent the
property to an owner or his tenant for a short term. or
for a period. subject to termination by the City on
short notice, the renc.al will not exceed the lesser of
the fair rental value of the property to a short term.
occupier or the pro rata portion of the fair market
value for a typical rental period.
D.
[Sec. aO&l
Bstablist.ent of Just ~ne41tioll
Before negotiatlolU1 are initiated to acquire property, the
City shall eat'.ablish an amount it believes to be just
cOJDpensation for t:he property, which UlOunt shall, in no event,
be less than the City.. appJ:'OVed appraisal of the fau market
value of the property.
-
The det.~!~tioD of just compensation ahall be baaed upon
consideration of J
- 31 -
.
.
1. orhe real property being acquired; and
2. Where the real property acquired is part of a larger
parcel, the injury or benefit, if any, to the
remainder.
Any deerease or increase in the fair market value of real
property to be acquired prior to the date of valuation caused by
the project for which such property is acquired, or by the
likelihood that the property would be acquired for such project,
other than that due to physical deterioration within the
reasonable control of the owner or occupant, will be disregarded
in determining the compensation for the property.
E.
[See. 807]
Uneconomic Remnant
Whenever a part of a parcel of property is to be acquired by
the City for a public use and the r~lIl~lnder, or a portion of the
ram~inder, will be left in such size, shape or condition as to
constitute an uneconomic rAm~ant the City shall offer to acquire
the remnant if the owner so desires. An uneeonomic remnant is a
parcel of real property in which the owner retains an interest
after partial acquisition of this property and which has little
or no utility or value to such owner.
P.
[Sec. 808]
Initiation of Neaotiations
1.
[Sec. 809]
Written Offer
The City shall JDAke its first written offer to acquire the
property as soon as practicable following service of the Notice
of Decision to Appraise. Such offer shall be made as soon as
possible after the amount of just compensation is established,
and for the fu~l amount so established.
2. [Sec. 810]
Stat..-ent of the Basis of Just COBlDensat~O"
At the time the City maless its offer to acquire the property
it shall provide the owner with a written statement of the basis
for deteJ:Dlinatlon of just compensation. ~he 8tateaent shall
include the following.
a. A general statement of the public use for which the
property 1. to be acquired.;
A 4eacription of the location and extent of
property to be taken, with sufficient detail
reaaol'~hl. identification, and the lnteze.t to
acqu1reclJ
c. An inventory identifying the bulldiDga, structures,
fiztur.., ancl other improvements,
b.
the
for
be
d. A recital of the amount of the offer and a statement
- 32 -
.
.
that such amount:
Is the full amount believed by the City to be just
compensation for the property taken~
(2) Is not more than the approved appraisal of the
fair market value of the property;
( 1)
(3)
Disregards any decrease or increase in the fair
market value of the real property to be acquired
prior to the date of valuation caused by the
project for which the property is to be acquired,
or by the likelihood that the property would be
acquired for such project, other than that due to
physical deterioration within the reasonable
control of the owner or occupant1
Does not ~eflect any consideration of or allowance
for any relocation assistance and payments or
other b~ .efits which the owner is entitled to
receive under an agreement with the City;
Does not reflect any consideration for loss of
goodwill for which the owner may claim payment
under procedures set forth in the City'S
Relocation Rules and Regulations. The City shall
include a copy of the pertinent provisions of the
Eminent Domain Law (Code of Civil Procedure,
Section 1263.510 et seq.) and these Rules and
Regulat~ons (Section 812).
e. If the real property is a portion of a larger parcel,
the statement shall include an apportionment of the
total estimated just compensation for the partial
acquisition between the value of the property being
taken ana the amount of damage, if any, to the
r-Alnder of the larger parcel from which such property
is taken.
(4)
(5)
G.
[Sec. 811]
Los. of Goodwill
NothJ.nq in this Section 800 shall be construed to deprive a
tel'\lll'l1; of the riCJbt to obtain payment for his pz:operty interest
as otherwise provided by ~aw.
As soon .s practicab1.e after the initiation of nevotiations
the City aball provide written notlf~catlon to the owner of a
business conducted OD the real property to be acquired or on the
:remainder. who ia not also the owner of ~ real property,
concerning his possible right to compensation for 1088 of
CJoodwill. -rhe City shall include a copy of the pertinent
provisions of the IlLinent Domain Law (Code of Civil Procedure,
Section 1263.510 et seq.) and thes. Rules and ~ations
(SectioD 812).
- 33 -
.
.
B.
(Sec. 812]
Comoensation for Loss of Goodwill
Notwithstanding any other provisions of Section BOO to the
contrary, the procedure for determining and offering compensation
for loss of goodwill in connection with the City's acquisition of
any property shall be governed by this Section 812.
1.
[Sec. 813]
Comoensation Generallv
With respect
property acquired
property is part
compensation to be
loss of goodwill,
and Regulations.
Within the meaning of this Section 812, -gOOdwill-
of the benefits that accrue to a business as a result
location, reputation for dependability, skill or quality,
other circumstances resulting in probable retention of
acquisition of new patronage.
to the owner of a business conducted on
by the City, or on the r~m~inder if such
of a larger parcel, the amount of just
paid by the City may include consideration of
to the extent required by law and these Rules
consists
of its
and any
old or
In order to be entitled to compensation on 10s8 of
such owner of a business shall first have proved all
following:
a. _The loss is caused by the .Acquisition of the property
or the injury to the r~~~inder~
goodwill
of the
b. The loss cannot reasonably be prevented by a relocation
of the busine.. or by taking steps and adopting
procedures that a reasonably prudent person would take
and adopt in preserving the goodwill;
Compenaation for
payments under
Requlations;
d. Compensation for the loss will not be duplicated in the
coapenaatlon othenrise paiel to the owner.
c.
the loss will not be
Section 500 of these
included
Rules
in
and
Rotice of Intent to Clata Lo.s
of Goodwill
Prior to a busin... completing its relocation frOlll property
acquiJ:ecl by the ~ty, or prior to the date such business
d18continuea, t:he owner of .uch bus.1ness IlaY notify the City that
it intends to attempt to aalte the proofs providecl for in Section
813.
2.
[Sec. 814)
COnfeD!nce to Diacus8 Eliaibilitv
to Receive _eo.nensation for Loss of
Goodtdll
Upon receipt of the notice required by Section 814, the City
3.
(Sec. 815)
- 34 -
.
.
MAnager of the City or designee shall confer with the c14UnAnt
regarding the issues set forth in Section 813. Based upon review
and consideration of information presented at said conference,
the City Manager will make a recommendation to the City as to
whether or not a goodw~ll appraisal should be made.
The recommendation of the City Manager shall be communicated
to the City~ if the City concurs in the recoln1!\'!ndation, the City
shall authorize a goodwill appraisal; provided, however, that the
City's determination to authorize a goodwill appraisal shall be
for purposes of negotiation and shall not be binding upon the
City in any eminent domain proceeding. In the event that the
City authorizes an appraisal of goodwill, if any, notice of this
decision shall be given to the business owner/claimant.
4.
[See. 816]
~usiness Records:
Authorization to Heaotiate
The owner of the business shall provide to the City such
business records as the City may require, including but not
liDdted to state income tax returns, financial statements and
accounting records, for confidential use for the purpose of
appraising the loss of goodwill of the business. The City shall
thereafter authorize negotiations with the business
owner/claimant regarding the claim for lost goodwill shall be not
less than the amount of the City's approved appraisal of the loss
of goodwill.of the business_
5.
[sec. 817]
CalcUlation of Met ~unt
of Just eo.pensation for Loss of
Goodwill for Reaotiation PurDOaes
The City shall calculate the amount it believes to be the
net amount of just compensation for loss of goodwill to which the
business is entitled, considering'
a. The amount the City believes for negotiating purposes
to be the total amount of loss of goodwill of the
buaiil...J and
b. Any compensation for loss of goodwill the City
determines i. included in payments made or to be made
under S4tction 500 of these Rules and RegulatIons.
6.
[sec. 818J
R.f nant- ""--iD
Hotw1.tbatal''''-~ any. other pI:'OViaion of Section 812 to the
contrary, .1n the event an eainent domain p%OC::=~q i. brought by
the City to actlU1re any property, the owner of any business
thereon shall seek compensatIon for loaa of goodwill in
connection with such proe;;ding, and the failure to do 80 shall
constItute a waiver of compensation for 10.. of goodwIll.
I.
[Sec. 819]
-
lIeao~f~t;i",n.~ ~f"'"'t ~fft
- 35 -
.
.
Prior to the commencement of an eminent domain proceeding to
acquire real property:
1. The City shall make reasonable efforts to discuss with
the owner its offer to purchase the owner's real
property;
2. The owner shall be given reasonable opportunity to
present material which he believes to be relevant as to
the question of value and to suggest modification in
the proposed terms and conditions of the purchase, and
the City shall carefully consider the owner's
presentation;
3. If the evidence presented by an owner or a material
change in the character or condition of the property
indicates the need for a new appraisal or if a
significant delay has occurred since the determination
of just compensation, the City shall have its appraisal
updated;
4. If a modification in the City'S determination of just
compensation is warranted, an appropriate price
adjustment shall be made and the new account determined
to be just compensation shall be promptly offered in
writing to the owner.
In no event shall the City either advance the time of
condt:mlT'\ation, or defer negotiations or condemnation and the
deposit of funda in court for the use of the owner, or take any
other action coercive or misleadinq in nature, in order to compel
or induce A~ agreement on the price to be paid for the property.
If any interest in property is to be acquired by exercise of
the power of eminetlt domain, the City shall promptly institute -
fODllAl condemnation proceedinqs. The City shall not
intentionally make it necessary for an owner to institute legal
proceedings to prove th'9 fact of the taking of his property.
J.
[Sec. 820J
JIotice of Decision ~ to kauire
Whenever ~ City haa forwarded.. Hotice of Intent to
Displace, a Ratte. of Decision to Appraise, or bas _de a fint
offer and subsequently the City decides not to acquire the
property, the City shall serve a notice in writillg on the owner,
all peraou occupyinV the property and all other persons
potentially eligible for relocation papaents and ..si.tanee. The
notice shall state that the City bas decided not to acquire the
property. It shall be served. not later than ten ( 10) days
following the date of the City decision DOt to acquire. Upon
receipt of such IlOtJ.ce any person shall be deeIIed not to be a
cl1aplacecl person.
- 36 -
.
.
It. (Sec. 821] Incidental Rxoenses
If the real property is acquired by purchase, the City shall
reimhurse the owner, for all reasonable expenses the owner
necessarily incurred incidental to the conveyance of such
property to the City. Among the expenses requiring payment are
the following:
1. Recording fees, transfer taxes and sLmilar expenses
incidental to conveying the real property,
2. The pro rata portion of charges for public service,
such as water, sewage, and trash collection which are
allocable to the period subsequent to the date of
transfer of title to the City, or the effective date of
possession of such property by the City, whichever is
earlier.
The City shall inform the owner that he may apply for a
rebate of the pro rata portion of any real property taxes paid,
which are allocable to the period subsequent to the date of
transfer of the property to the City.
L.
[Sec. 823]
Purchase Price as Public Info~tion
The purchase price and other consideration paid by the City
for real property is public infoDlation and shall be made
available upon request.
11.
[Sec. 824]
Service of Rot.ice
Service of all notices required by this Section 800 shall be
made either by first class mail or by personal service upon the
person notified.
IX. (Sec. 900) PROPBRrY JIARAGB:ME1r1' PRACrICBS
A. (See. 901) Short 're~ Renwl
If the City permits an owner or tenant to occupy the
acquired real property on a rental bas is for a short ter. or for
a period subject t.o teJ:ll.1.nation by the City on short notice, the
UIOunt of rent xequ1recl shall not exc:::! the lesser of the fair
rental value to A short. t8Dl occupier or a pro rata portion of
the fAf~ rental value for a typical rental period.
B.
[Sec. 902]
"
Botice to Vacat:e
The conab:UCtlon or development of . project shall be so
scheduled that, UJ the greatest extent practicable, no eligible
person occupying real property .hAll be required to IKmI hi.
buLDe.s, without at least ninety (90) days. written notice from.
the City of the date by which such IaOV8 1s required. ~he City
shall notify each J..ncU.vidual tenant to be displaced.. well .a each owner-occupant.
- 37 -
~
'"
.
.
C.
[Sec. 903]
Eviction
Eviction may be undertaken for-one or more of the following
reasons:
1. Failure to pay rent, except in those cases where the
failure to pay is the result of harassment or
retaliatory action or is the result of discontinuation
or substantial interruption of services;
2. Remaining in possession after expiration or termination
of the term;
3. Performance of a dangerous or illegal act on the
property;
4. Haterial breach of the rental agreement and failure to
correct such breach within thirty (30) days of notice;
5. Maintenance of a nuisance and failure to abate within a
reasonable time follow1nq notice;
6. The eviction is required by State or local law and
cannot be prevented by reasonable efforts on the part
of the City.
Eviction pursuant to this Section shall not effect a
tenant's right to relocation benefits where the tenant is
otherwise entitled to such benefits.
D.
[sec. 904]
Status of Po8t-~aui.8i.ti9n '.re~ts
1.
[Sec. 905]
Roti.ee of Status
The City shAll ~for.m prospective post-acquisition tenants,
before they occupy t.he property, that the property has been
acquirec1 for & public us. and. will be available only in the
interim between acquisition and dev.lo~nt and that development
for such us. IllaY result in t8%m.ination of the tenancy sooner than
would otbez:wLs. be expected..
The City shall also info~ prospective poat-acquisition
tenants regarding the projected. date of displaceaent and,
periodically. shall 1nfo~ poat-acquisition tenant. of any
chanfJ8S in such date.
2.
[Sec. 906]
Batie. to Vacate
A post-acquisition te~~~t who occupies acquired real
property on a rental basis for a short tera and who i. infoD18d.
that the property hall been acquirec:l for a public use ahall be
- 38 -
.
fo/- tJ/)O-~/
.
4~ T~EP _~~
CITY OF SANTA MONICA
INTER-DEPARTMENT MEMORANDUM
DATE:
September I, 1989
TO:
Mayor and Councilmembers
FROM:
city Clerk
SUBJECT:
LAST PAGE TO EXHIBIT, ITEM 6-E, SEPTEMBER 5, 1989,
COUNCIL MEETING
The attached is the last page of the exhibit for Item 6-E
distributed to Councilmembers in their packets on August 30,
1989.
Please attach this page to your staff report.
Thank you.
~ Ti f,-.
SEP - ') im
-"11
-
e
given at least thirty (30) days' written notice of termination of
the tenancy.
3.
[Sec. 907]
Eligibility for Relocation
Assistance and Payments
Post-acquisition tenants are not el1gible for relocation
assistance and payments if, before occupying the property, they
are informed by the City that the property has been acquired for
a public use and will be available only in the interim between
acquisition and development and that development for such use may
result in termination of the tenancy sooner than would otherwise
be expected. When so informed, post-acquisition tenants are not
eligible even though they move as a result of a written order
from the City to vacate the real property.
Persons who become post-acquisition tenants after
effective date of these Rules and Regulations who are not
informed and who move as a result of a written order from
City to vacate are eligible for relocation assistance
payments, except where they are evicted in accordance
Section 903 of the Rules and Regulations.
the
so
the
and
with
4.
[Sec. 908]
Hardship Cases
When the displacement of a post-acquisition tenant causes a
hardship for that person because of a critical housing shortage,
age, handicap, infirmity, lack of financial means or other
circumstances, the City may provide relocation assistance and
payments.
- 39 -