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SEP - 5 989
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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 and 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'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 acquisition 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
lump 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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, BEFORE DISTRIBUTION ~CK CONTENT OF ALL FOR CI CLERK'S ACTION (
DISTRIBUTION OF RESOL TION # ;; g 9/ ORDINANCE #
Counc~l Meet~ng Date %;/J7 Introduced:
Agenda Item # C -!3- Adopted:
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ALWAYS PUBLISH ADOPTED ORDINANCES
Was lt amended? Cross out Attorney's approval
VOTE: Affirmative: ,f#e>~ A~A:~ "~.r~,~rz.....~ 24rtE-
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Negat~ve:
Abstain:
Absent: _JE,yH/#~--, ~
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
DISTRIBUTION: ORIGINAL to he s~gned, sealed and f~led 1.n Vault.
NEWSPAPER PUBLICATION (Date: )
Department originat~ng staff report( Laur~e L~eberman)
Ord~nances only for Attorney , Claud~a Thompson) 2
Management Services Lynne Barrette ORDINANCES ONLY 1
Agency mentloned In document or staff report
(certlflea.?)
SubJect f1.1e (agenda packet) 1
Counter flle 1
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Others: (Revlew for departments who need to know).
A~rport Parking Auth.
Audltorium Personnel
BUJ.lding Dept. PlannJ.ng
~ ~~ / Police
----:; '~~_=.e.(.a-.'-- Purchasing
~~~ 2na e
General Servo Recr/parks
L1.brary Transportation
Manager Treasurer
FJ.re
SEND FOUR COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS 4
120 Maln Street
Avon, New Jersey 07717
SEND FOUR COPIES OF ALL ORDINANCES TO: 4
Debra MyrJ.ck
Santa Mon~ca Mun~c~pal Court
1725 Ma1.n Street, Room 118 -:::>
Santa Mon1.ca, CA 90401 Total Coples ~~
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RESOLUTION NO. 7891 (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's 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 City'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 with 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
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RULES AND REGULATIONS
. FOR IMPLEMENTATION OP ':l'~
CALIFORNIA RELOCATION ASSISTANCE LAW
FOR DISPLACED BUSINESSES
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RULES AND REGuLATIONS
FOR IHPT.F.JfEN'rATION OF '.r~
CALIFORNIA RELOCATION ASSISTANCE LAW
FOR DISPLACED BUSINESSES
I. [Sec. 100] GENERAL
A. [Sec. 101] Purpose
The purpose of these Rules and Regulations is to implement
the California Relocation Assistance Law (Government Code,
Section 1260 et seq.).
The Rules and Regulations are designed to carry out the
following policies of the Relocation Assistance Law with respect
activities of the City:
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 wholei and
2. In the acquisition of Ieal 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.
B. [Sec. 102] Authority
These Rules and Regulations have been adopted by resolution
of the City pursuant to Section 1261.8(a) of the California
Government Code, and are in conformity with the Relocation
Assistance Law and the Relocation Assistance and Real property
Acquisition Guidelines adopted by the Department of Housing and
Community Development (the "Guidelines").
C. [Sec. 103] Effective Date~ Applicability
The effective date of these Rules and Regulations shall be
the date of their adoption by the City. These Rules and
Regulations shall be applicable to all displacement and
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P. [Sec. 106] Priority of Pederal Law
With respect to a federally funded project, the City ,hall
make relocatJ..on assistance payments and provide relocation
advisory assistance as required under federal law. The City may
make any relocation assistance payment in an amount which exceeds
the maximum amount for such payment authorized by these Rules and
Regulations, if the making of such payment, or the payment in
such amount, is required under federal law to secure federal
funds.
G. [See . 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] DEPINITIONS
A. [Sec. 201] Acquisition
"Acquisition" means obtaining ownership or possession of
real property by purchase, eminent domain, or any other lawful
means.
B. [See . 202J 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] Averaqe Annual Het Earnings
"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 proprietoxship, 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. [Sec. 204] Average Monthly IncOJDe
"Average monthly income" means gross income divided by
twelve.
B. [Sec. 205] Business (from Govt. Code Sec. 7260(d)
"Business" means any lawful activity, except a farm
operation, conducted primarily:
l~ For the purchase, sale, lease, or rental of personal and
real property, and for the manufacture, processing, or
marketing of products, commodities or any other personal
property;
2. For the sale 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] Department
"Department.. means the California Department of Housing and
Community Development.
H. [See. 207] Displaced Business
(from Gavt. Code Sec. 7260(c)
"Displaced business" means any business which qualifies as a
displaced ?erson under Section 209 hereof.
I. [Sec. 208] Displaced Fara Operation
"Displaced farm operation" means any farm operation which
qualifies as a displaced person under Section 210 hereof.
J. [See. 209] Displaced Person
"Displaced person" means any person who moves from real
property, or who moves his personal property from real property,
as a result of:
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 from the City to vacate the real property
for public use or;
3. The initiation of negotiations by the City to 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 displaced as a result of an agreement with the City
including, but not limited to, an owner participation agreement,
a disposition and development agreement or an exclusive right to
negotiate aqreement, with a public use where the City is
otherwise empowered to acquire the property to carry out the
public use.
Except tenants or occupants of housing made available on a
permanent basis by the City, a "displaced" person sr..J.ll not
include: (1) any person who, at the time of the City's
acquisition of the real property, was not a tenant or oc,-_pant in
lawful possession of the real property, and whose r~ght 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 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.
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 redevelopment
plan is not a displaced person.
K. [Sec. 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] Parm Operation
"Farm operation" means any activity conducted solely or
primarily for the production of one or more agricultural products
or commodities, including timber, for sale or home use, and
customarily producing such products or commodities in sufficient
quantity to be capable of contributing materially to the
operator'~ support.
H. [Sec. 212] Pederal Project
"Federal project" means any direct federal project or any
project receiving federal financial assistance.
H. [Sec. 213] Gross Income
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"Gross income" means the annual income from all sources of
each member of the family residing in the household who is
eighteen (18) years of age or over, except that income of a head
of household or his spouse who is under eighteen (18) shall be
included. Gross income is based on the 12-month period prior to
displacement. If the City deter.mines, on a case by case basis
that the use of the twelve (12) month period prior to
displacement would result in a hardship to the claimant, an
alternate period, actual or projected, may be used in such
exceptional situations.
o. [Sec. 214J RI!I1'\dicapped Household
"Handicapped household" means a household in which any
mpmher is handicapped or disabled.
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P. [Sec. 215] Initiation of Negotiations
"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. [Sec. 216] Mortgage
"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, l.f any, secured
thereby, including but not limited to deeds of trust and land
sales contracts.
R. [See . 217] Nonprofit Orqanization
"NOnprofit organization" means a corporation, partnership,
individual or other pu~~~c or private entity, engaged in a
business, professional or _nstitutional activity on a non-profit
basis, necessitating fix't.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] Ownership
"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 lease;
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 proprietary interest in a mobile home:
7. A leasehold interest with an option to purchase.
In the case of one who has succeeded to any of the foreqoing
interest by devise, 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.
T. [Sec. 219] Person
.Person" means any individual, family, partnership,
corporation association.
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o. [See . 220] Personal Property
"Personal property" means tangible property which is
situated on a real property vacated or to be vacated by a
displaced person and which is considered personal property and 1S
non-compensable (other than for moving expenses) under the state
law of eminent domain.
In the case of a tenantT 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] Post-Acquisition ,Tenant
"Post-acquisition tenant" means a tenant who lawfully
commences to occupy property only after the City acquires it.
W. [sec. 222] Prepaid Expenses
"Prepaid expenses" means items 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'
association dues and assessment payment.
x. [Sec. 223] Publi.c Use
"Public use" means a use for which real property may be
acquired by eminent domain.
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III. [ See . 300] RELOCATION ADVISORY ASS rSTAHCB
(from Govt. Code Sect~on 7261)
A. [See . 301] Advisory Assistance to be Provided
by the City
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 pexson occupying property
immediately adjacent to the real property acqu1red 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:
1- Fully inform eligible persons as to the availability of
relocation benefits and assistance and the eligibility
requirements therefore, as well as the procedures for
obtaining such benefits and assistance;
2. Determine the extent of the need of each eligible person for
relocation assistance;
3. Provide current and continuing information on the
availability, prices, and rentals of comparable sales and
rental housing, and comparable commercial properties and
locations, and as to security deposits, closing costs,
typical down payments, interest rates -and terms for
residential property in the area;
4-. Assist each eligible, displaced person to complete
applications for payments and benefits;
5. Assist each eligible, displaced business in obtaining and
becoming established in a suitable replacement location with
a minimum of delay and loss of earnings;
6. Provide any services required to insure that the relocation
process does not result in different or separate treatment
on account of race, color, religion, ancestry, national
origin, sex, sexual orientation, age, AIDS, marital status
or other arbitrary circumstances. Such relocation process
shall satisfy the requirements of Title VI of the Civil
Rights Act of 1964, Title VIII of the Civil Rights Act of
1968, the Unruh Civil Rights Act and the California Fair
Housing Law;-
7. Supply to eligible persons information concerning federal
and state housing programs, disaster loan and other programs
administered by the Small Business Arlmtnistration, and other
federal or state programs offering assistance to displaced
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persons;
8. Provide other advisory assistance to eligible persons to
minimize their hardships, such as counseling and referrals
with regard to housing, financing, employment, training,
health and welfare;
9. Inform all persons who are expected to be dJ.splaced about
the eviction policies to be pursued in carrying out the
project.
B. [See . 302] Information proqram
1. [Sec. 303] General Information
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. _ [See . 304] Personal Contact
As soon as practicable followinq 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 efforts indicate that such contact is not possible.
Such contact may be made at the time and as part of the interview
to ascertain relocation needs conducted pursuant to Section 310.
All persons shall be advised and encouraged to contact the City's
relocation consultant for information and assistance. The City
shall maintain personal contacts with occupants of the property
to the maximum extent practicable.
3. [Sec. 305] Information Statement:
Relocation Assistance
As soon as practicable following the initiation of
negotiations to acquire a parcel of real property the City shall
provide each occupant of such property with a written statement
containing the following information:
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1- A general description of the nature and types of activities
that will be undertaken and identification of the
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displacement area involved, including a diagr&lwatic 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 he 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
~ligibility for a payment;
4. Identification of the City's relocation program and a
description of relocation services and aids that will be
available;
5. Encouragement to contact the City's relocation consultant
and cooperate with staff, and the address, telephone number
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 s~mm~ry of the City's eviction policy;
9. A statement describing the City's 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 statements
shall be prepared for residential and non-residential
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4. [Sec. 306] Rotice of Eliqibility 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
this eligibility status as soon as it has been established.
5. [sec. 307] Lanquaqe of Information Material
Information material shall be prepared in the language(s)
most easily understood by the recipients. In displacement areas
where there are siqnif~cant concentrations of persons who do not
read, write, or understand English fluently, the native language
of the people should be used and all informational IDaterial
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should be provided in the native language(s) and English.
6. [Sec. 308] Method of Deli very of
Informational Material
To assure receipt of the informational material, the City
shall arrange to have the material e~ther hand-delivered to each
occupant of the property with a request for a written receipt, or
sent by certified mail, return rece~pt requested.
C. [ See . 309] DeteJ:lll.ination of Relocation N::::::ds
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 eac~ 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 Obtained
The City in its best efforts shall obtain the following
information from eligible persons:
(1) Income;
(2) Location of job and factors lLmiting accessibility~
(3) Area of preferred relocation;
(4) Ownership or tenant.preference;
(a) locational factors including, among others, public
utilities.
b. [Sec. 312] Coordination with Other Aqencies
In order to avoid duplication of effort and to ensure that
necessary 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 social service referrals of eligible persons shall
be planned in cooperation with social service agencies. _
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c. [Sec. 313] Intervi~ after Person Moves
Without Notification
If the City fails to conduct the required interview of any
eligible person in a timely 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. [Sec. 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
necessary. 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. [Sec. 315] Updatinq 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 bring any change in their needs to the attention of
the City.
D. [See . 316] Relocation Site Office
The City may, as it deems necessary, establish a site office
which is accessible to all area businesses who may be displaced
to provide relocation assistance. Office hours shall be
scheduled to accormnQdate persons unable to visit the office
during normal business hours. The City m~y also make provision
for meeting with displaced persons in their homes or places of
business.
B. (Sec. 317] Contractinq for Relocation Services
The City may enter-into a contract with any individual,
firm, association, corporation or governmental city having an
established organization for conducting relocation assistance
programs, for the purpose of providing relocation advisory
assistance.
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F. [See . 318] Coordination of Relocation Assistance
The City shall coordinate its relocation assistance program
with other work necessitating displacement of persons, and with
activities 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.
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IV. [See. 400] RELOCATION PLANS
As soon as practicable following the initiation of
negotiations to acquire a parcel of real property in any
displacement area required for site Lmprovements, disposition and
development agreements, participation 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 insign~ficant amount of non-residential
displacement, the City is not required to prepare such a Specif~c
Relocation Plan.
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v. [ See . 500] RELOCATION PAYHENTS TO DISPLACED BUSINESSES
A. [See . 501] Payments ~equired
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 bus~ness 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. [See . 502] Movinq Expenses;
Loss of Property Search 2xpenses
1. [See. 503) Actual Reasonable Hovinq Expenses
A displaced business 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 a cla~m has been filed~
The moving and related expenses for which claims may be
filed shall include:
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 (50) 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
determined by the City to be necessary in connection
with relocation;
d. Insurance of personal property while in storage or
transit;
e. The reasonable replacement value of property lost,
stolen, or damaged (not through the fault or negligence
of the displaced business, its agents or employee) in
the process of moving, where insurance covering such
loss, theft, or damage is not reasonably available;
f. The cost of disconnecting, dismantling, removing,
reassembling, reconnecting and reinstalling machinery,
equipment, or other personal property (includinq goodS
, and inventory kept for sale) not acquired by the City,
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including connection charges imposed by public
utilities for starting utility service;
g. The cost of any addition, Lmprovement, alteration or
other physical change in or to any structure or its
premises in connection with the reas6embl~ng,
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 personal property to adapt it to
the replacement location or to utilities available at
the repl ~ement location or the cost of modifying the
power sur ly; claims for reimbursement of all such
costs sha~_ be subject to the following limitations:
(1) The cost shall be directly related to
displacement;
(2) Reimhursable costs shall be reasonable in amount;
(3) The cost shall be found by the City to be required
by law or ordinance or to be otherwise necessary
to the re-establishment of the displaced business~
(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 estimate, the amount, if any, realized
by the displaced business concern as compensation
for comparable additions, improvements,
alterations or other physical changes to the
structure and premises acquired, as part of the
payment made for the acquisition of such structure
and premises;
h. The cost of any license, permit, or certification
required by a displaced business concern to the extent
such cost is necessary to the re-establishment of its
operation at a new location;
i. The reasonable cost of any professional services
(including but not limited to architects', attorneys',
or engineers' fees, or consultants' charges) necessary
for planning the move of personal property, movi'~ the
personal property, or installation of re )cated
personal property at the replacement site;
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j . Where an item of personal property which is used in
connection with any business is not moved but is
replaced with a comparable item, reimbursement in an
amount not to exceed the lesser of:
( 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
prospect.ive purchasers. The displaced business shall be
reimbursed for the reasonable costs of such effort to sell
the tangible perso~al property.
k. The reasonable cost of advertising the move, and of
obtaining replacement business cards, stationary, and
business forms customarily kept by comparable business
enterprises.
Where, .in the judgment of the City, the cost of moving any
item of personal property of low value and high bulk which is
used in connection with any business would 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 replacing the same with a comparable ~tem
available on the market and the ~mQunt which would have been
received fo~ such property on liquidation. This provision may in
appropriate situations be applied to claims involving the moving
of junk yards, stockpiles, sand, gravel, minerals, metals, and
similar property.
A displaced business which conducts a lawful activity
primarily for assisting in the purchase, sale, resale,
manufacture, processing, or marketing of products, cC'!I!!~IIJdities ,
personal property, or services by the erection and maintenance of
outdoor advertising displays is entitled to payment for the
reasonable cost of moving ~uch displays or their in-place value,
whichever is lesser.
2. [Sec. S04] .Actual Direct Losses of Tanqible
Personal Property
A displaced business shall be compensated for the actual
direct losses of tangible personal property of the displaced
business attributable to moving or discontinuing such business.
The total amount of the payment of the City for such losses shall
not exceed an ~~Qunt equal to the estimAted reasonable cost of
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moving the personal property, 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 apprais~ng
either:
a. The in-use value (fair market value of the personal
property for continued use at its location prior 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
highest price offered-after reasonable efforts have been made
over a reasonable period of time to interested prospective
purchasers. The reasonable cost of aD effort to sell the
personal property shall be added t the determination of loss
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. 505] Actual Reasonable Expenses in
Searchinq for a Re~lacement Business
A displaced business shall be compensated, for actual
reasonable expenses incurred in searching for a replacement
business up to a maximum reimhursement of $1,000, including
expenses incurred fora
a. Transportation;
b. Meals and lodging away from home;
c. Time spen~ in searching, based on an hourly rate
of the salary or earnings of the displaced
business or its representative, but not to exceed
$10.00 per hour;
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d. Fees paid to a real estate agent, broker, or other
professional to locate a replacement business.
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c. [See . 506] AI ternate Payments
1. [Sec. 507] Determination of Payments
a. (Sec. 508] Amount of Payment
A displaced business which moves or discontinues, and which
meets the eligib~lity 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.
b. [Sec. 509] Determination of Nnmher
of Businesses
In determining whether one or more legal entities, all of
which have been acquired, constitute a single business, the
following factors among others, shall be considered:
(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 and business and financial affairs are
commingled;
(3) The extent to which such entities are held out to
the public, and to those customarily dealing with
such entities, as one business; -
(4) The extent to which the same person or closely
related persons own, control, or manage the
affairs of the entities.
2. [Sec. 510] Bliqibility
8. [Sec. 511] Business (Other than
Nonprofit Organization)
A displaced business (except a nonprofit organization) is
eligible for the payment provided for in Section 508 only if the
City determi.nes that:
( 1) The business cannot be relocated without a
substantial loss of its existing patronage, based
on a consideration of all pertinent circumstances
includinq such factors as the type of business
conducted, the nature of the clientele, the
relative importance to the displaced business of ..
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its present and proposed location, and the
availability of a suitable relocation site;
( 2 ) The business is not part of a commercial
enterprise havinq another establishment which is
not being acquired for a project and which is
engaged in the same or similar business. Whenever
the sole remaining facility of a business which
has been displaced from its principal location:
(a) Has been in operation for less than two (2) years;
or
(b) 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
business; or
(c) Has had annual net earnings of less than $1,000
during the two (2 ) taxable years prior to the
displacement of the ma j or component of the
business;
the remaining facility will not be considered another
"establishment" for the purposes of this Section;
(3) The displaced business:
(a) Had average annual gross receipts of at least
'$2,000 during the two (2) taxable years prior to
displacement; or
(b) Had average annual net earnings of at least $1,000
during the two (2) taxable prior to displacement;
or
In any case the City determines that the two (2) year period
prior to displacement is not representative of the average
receipts, earnings, or income, it may make use of a more
representative period.
If a displaced business does not meet any of the above
conditions, the City may nevertheless pay it the $2,500 minimum
amount, provided that the City otherwise deteJ:Illines that such
business is in fact a bon~ fide business.
b. [Sec. 512] Nonprofit Oraanization
In the case of a nonprofit organization, no payment shall be
m~de under Section 508 unless the City deteDDines that:
( 1) The nonprofit organization cannot be relocated
without a substantial 10s8 of its existing
patronage {the term "patronage- as used herein
,
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includes the membership, persons, community, 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.
D. [Sec. 513] Business Supplement Payment for
Certain Business Occupants
The City may make payments in accordance with the provisions
of Addendum No.1 to certain business occupants. Addendum No. t
is attached hereto and incorporated herein by this reference.
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VI. [Sec. '600] ("T.ljM AND PAYMENT PROCP;OURES
A. [See . 601] Pilinq of ClaimA
All claims for relocation assistance and payments filed with
the City shall be submitted within eighteen (la) months of the
date on which the cla1mant 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.. [Sec. 602] Documentation in Support of ClaLm
1- [Sec. 603] Moving Expenses
a. (Sec. 604] C01II1"ercial Haves
Except in the case of a displaced res~' -nt or displaced
business electing to -~lf move, a claL~ for ~~yment )f actual
reasonable moving expenses shall be supported by a bil~ or other
evidence of expenses incurred.
Each claLm in excess of $1,000 for the costs incurred by a
displaced business in moving the business operation shall be
supported by competitive bids in such numher as are practical.
If the City determines that compliance with the bid requirement
is impractical, or if estLmates in an amount less than $1,000 are
obtained, a claim may be supported by estimates in lieu of bids.
b. [Sec. 605] Self Moves
Without documentation of moving expenses actually incurred a
displaced resident or displaced business electing to self move
may submit a clai~ for movinq expenses to the City in an amount
. not to exceed the estimated cost of moving commercially. The
estimated cost of moving c~~rcially shall be based on the
lowest responsible bid or estimate from at least two (2)
reputable moving firms submitted by the claimant to the City
prior to the move. The estimated cost of moving commercially
shall include the cost, if any, of obtaining bids or estimates.
c. [Sec. 606] Exemption froa Public Utilities
Commission Regulations
Whenever the City must pay the actual cost of moving a
displaced person the costs of such move shall be exempt from
regulation by the Public Utilities COmftl,fssion. The City may
solicit competitive bids from qualified bidders for perfoJ:1D.ance
of the work. Bids submitted in response to such solicitations
shall be exempt from regulation by the Public Utilities
Commission.
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2. [Sec. 607] Loss of Property
A claim by a displaced business for payment for the actual
direct loss of tangible personal property pursuant to Section 704
shall be supported by written evidence of loss which may include
appraisals, certified prices, bills of sale, receipts, canceled
checks, 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. (Sec. 608] Proof of Earninqs
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 earnings may be established by income tax returns,
financial statements and accounting records or similar evidence
acceptable to the City.
C. [See . 609] Payment of Movinq Expenses
1. [Sec. 610] Advance Payment
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 Payment
By prearrangement between the City, the displaced business,
and the mover, evidenced in writing, the claimant or the mover
may present an unpaid moving bill to the City, and the City may
pay the mover directly.
3. [Sec. 612] Hethods Hot Exclusive
The specific provisions of these Rules and Regulations are
not intended to preclude the City's reliance upon other
reasonable means of effecting a move, including contracting moves
and arranging for assigpment of moving expense payments by
displaced businesses.
D. [Sec. 613] Assistance and Pavments to
Persons MOvinq without Notice
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 and effective manner, the City
shall make every reasonable effort to identify and locate such
business who has moved. Eligible displaced businesses who move
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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 timely 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.
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VII [Sec. 700] GRIEVANCE PROCEDURE
A. [Sec. 701] Right of Review
Any person who believes hLmself aggrieved by a determination
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 practices may, subm.Lt
his claim for review and 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 formal 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 the
complainant to discuss the claim with the City Manager of the
City or a designee having authority to revise the initial
determination on_ the claim. The City Manager shall make a
smn~.ary of the matters discussed in the oral presentation to be
included as part of the City's file.
The City Manager shall notify the complainant in writing of
the determination within 15 days of the oral presentation.
If the City Manager denies or refuses to review or to
reconsider a claim, the City -Manager's notification to the
claimant of this deteonination shall infoDll the claimant of the
reasons and the applicable procedure for obtaining review of the
decision.
c. [See. 703] Request for Formal Review
and Reconsideration
Within 30 days after the mailing of the decision of the City
staff as provided herein or the decision of the City Manager
following an oral presentation of the grievance as hereinabove
provided, a complainant may file a written request for fonnal
review and reconsideration by the City Council. The complainant
may include the request to review any statement of facts within
the complainant's knowledge or belief or other material which may
have a bearing on the appeal. Upon a showing of good cause, the
time within which to file an appeal may be extended. by the City
Manager.
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The City Council shall consider every aqgrieved person's
. complaint regardless of form, and shall, if provide
necessilXY,
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assistance in preparing the written request for review.
D. [Sec. 704] Notice of Hearinq and Procedures
The City Manager shall set the request for review and
reconsideration or hearing within 15 days of receipt thereof, and
not~fy 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. 705] Review by City Councilor its Designee
The City Councilor its designee shall promptly hear all
complaints brought by any aggrieved 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 regulations.
The City Councilor its designee shall review and consider
the initial determination of the City's staff or that of the City
Manager and base its decision on the following:
(1) All applicable rules and regulations;
(2) The reasons given by the complainant for
requesting review and reconsideration of the
claim;
(3) Any additiona~ written or relevant documentary
material submitted by the complainant;
(4) Any further inform;:ttion which the City Council or
its designee, in its discretion, obtains by
request, investigation or research, to insure fair
and full review of the claim.
F. (Sec. 706J l'J,nd i nqs and Recommendations by
CLtv CouncLl or its Design~~
The City Councilor its designee shall prepare findings and
recommendations and transmit the same to the City. A copy
thereof shall be mailed to the complainant. The City Councilor
its designee shall issue its findings and recommendations within
three weeks of the conclusion of the hearing. In the case of a
findinq of dismi~sal for untimeliness or for any other reason not
based on the merits of the claim, the findings and recol1llllendation
shall be issued within 10 days of the termination oi the hearing.
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The findings and recommendations of the City Councilor its
designee shall include, but shall not be lLmited 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 Council or its
designee, including any recommendation for
modification or reversal of the City Manager'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. 707] Joint Complainants
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.
B. [Sec. 708] Riqht 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. [See . 709] Revi.ew of Piles by Claimant
Except to the extent that confidentiality of material is
protected by law or its disclosure is prohibited by law, the City
shall permi t the . claimant to inspect all files and records -
bearing upon his claim or the prosecution of the claimant's
grievance. The City may Lmpose reasonable conditions on such
right to inspect. If a claimant is improperly denied access to
any relevant material bearing on the claim, such material may not
be relied upon in reviewing the initial determination. .
J. [See. 710] Rec01Dlllendati.ons by Thi.rd Party
Upon agreement between the claimant and the City, a mutually
acceptable thi.rd party or parties may review the claim and make
advisory recommendations thereon to the City for its final
determination. In reviewing the claim and making recommendations
to the City, the third party or parties shall be guided by these
Ru1es and Regu1ations.
K. [See. 711] Effect of Determination on Other Persons
The pri.nci.ples established in all d~te~i'l\ations by the City
shall be considered as precedent for all eligible persons in
similar situations regardless of whether or not a person has ~
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filed a wr1.tten request for review. All written determinations
shall be kept on file and available for public review.
L. [See . 713] Judicial Review
Nothing in these Rules and Regulations shall in any way
preclude or lLmit a claimant from seek~ng judicial review of his
claim upon exhaustion of such administrative remedies as are
available.
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VIII. [Sec. 800] ACQUISITION PRACTICES
A. [sec. 801] Acquisition of Property by Neqotiation
(from Govt. Code Sec. 7267 et seq.)
The City shall make every reasonable effort to acqu~re
property by negotiat~on and to do so exped~tiously. 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 BOO. 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 sewers, waterlines or
appurtenances, drains, septic tanks, or storm water drains.
B. [sec. 802] Appraisal of Property
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 to Appraise
1. [Sec. 804] COntents of Notice
The City shall provide the owner with written notice of its
decision to appraise the real property as soon as possible after
the decision to appraise has been reached. The notice shall
state, as a minimum, that:
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a. A specific area is being considered for a particular
public use;
b. The owner#s property is located within the area; .
c. The status of the City#s decision on whether or not to
acquire the property, including a statement that no
determination has been made by the City to acquire the
property, if such be the case~
..
d. A statement that the owner or his representative
(designated in writing) shall be given the opportunity
to accompany each appraiser during his inspection of
the property.
2. (Sec. 80S] Information StatP.Dlent:
Property Acquisi.tion Procedures
At the ttme the City notifies an owner of its decision to
appraise real property it shall furnish the owner with an ...
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explanation oftltts land acquisition proc~res~ describing in
non-technical~ understandable terms the City's acquisition
procedures and the principal rights 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 certal.n
prescribed land acquisition procedures will be followed and the
statement shall include the following explanations:
a. A description of the basic objective of the City's land
acquisition program and a reference to the availability
of the City'S statement covering relocation benefits
for which an owner occupant may be eligible;
b-. A statement that if the acquisition of any part of the
real property would leave the owner with an uneconomic
r~~nant, the City will offer to acquire the uneconomic
remnant, 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
Eminent 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 wiII 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
condA~nation proceeding against 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 rental will not exceed the lesser of
the fa.ir 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. 806] Es~ablisbment of Just Compensation
Before negotiations are initiated to acquire property, the
City shall establish an amount it believes to be just
compensation for the property, which amount shall, in no event,
be less than the City'S approved appraisal of the fair market
value of the property.
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The determination of just compensation shall be based upon
consideration of:
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1. The 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 decrease 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 deter.mining the compensation for the property.
E. (Sec. 801] Uneconomic RP!'ft1\ant
Whenever a part of a parcel of property is to be acquired by
the City for a public use and the remainder, or a portion of the
remainder, will be left in such size, shape or condition as to
constitute an uneconomic r~~nant the City shall offer to acquire
the r~~rHlant if the owner so desires. An uneconomic 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.
,. [Sec. 808] Initiation of Neqotiations
1. [Sec. 809J Written Offer
The City shall make 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 full amOllnt so established.
2. [See.. 810) Statement of the Basis of Just Compensation
At the time the City makes its offer to acquire the property
it shall provide the owner with a written statement of the basis
for determination of just compensation. The statement shall
include the following:
a. A general statement of the public use for which the
property is to be acquired;
b. A description of the location and extent of the
property to be taken, with sufficient detail for
reasonable identification, and the interest to be
acquired;
c" An inventory identifying the buildings, structures,
fixtures, and other improvements;
. d. A recital of the amount of the offer and a statement
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that such amount:
(1 ) 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;
(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 occupant;
(4) Does not ~eflect any consideration of or allowance
for any relocation assistance and payments or
other bi;.. .efits which the owner is entitled to
receive under an agreement with the City;
(5) 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
Regulations (Section 812).
e. If the real property is a portion of a larger parcel,
the statement shall include an apportionment of the
total est:im"ted just compensation for the partial
acquisition between the value of the property being
taken and the amount of damage, if any, to the
remainder of the larger parcel from which such property
is taken.
G. {Sec. 811] Loss of Goodwi.ll
Nothing in this Section 800 shall be construed to deprive a
tenant of the right to obtain payment for his property interest
as otherwise pxovided by law.
As soon as practicab~e after the initiation of negotiations
the City shall provide written notification to the owner of a
business conducted on the real property to be acquiIed or on the
r""'III~inder, who is not also the owner of the real property,
concerning hi.s possible right to compensation for loss of
qoodwill. The - City shall include a of the pertinent
copy
provisions of the F.mi uent Domain Law (Code of Civil Procedure,
Section 1263.510 et seq. ) and these Rules and Regulations
(Section 812). -
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B. [See . 812] Compensation for Loss of Goodwil,l
Notwithstanding any other provisions of Section 800 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] Compensation Generally
With respect to the owner of a business conducted on
property acquired hy the City, or on the remainder if such
property Ls part of a larger parcel, the amount of just
compensation to be paid by the City may include consideration of
loss of goodwill, to the extent required by law and these Rules
and Regulations.
Within the meaning of this Section 812, "goodwill" consists
of the benefits that accrue to a business as a result of its
location, reputation for dependability, skLIl or quality, and any
other circumstances resulting in probable retention of old or
acquisition of new patronage.
.
In order to be entitled to compensation on loss of goodwill
such owner of a business shall first have proved all of the
following:
a. The loss is caused by the ~cquisition of the property
- or the injury to the remainder;
b. The loss cannot reasonably be prevented by a relocation
of the business or by taking steps and adopting
procedures that a reasonably prudent person would take
and adopt in preserving the goodwill;
c. Compensation for the loss will not be included in
payments under Section 500 of these Rules and
Regulations;
d. Compensation for the loss will not be duplicated in the
compensation otherwise paid to the owner.
2. [Sec. 814] Notice of Intent to Claim Loss
of Goodwi11
Prior to a business completing its relocation from property
acquired by the City, or prior to the date such business
discontinues, the owner of such business may notify the City that
it intends to attempt to m;r,lte the proofs provided for in Section
813.
3. [Sec. 815] Conference to Discuss Eliq1bility
to Receive Compensation for Loss of,
Goodwill
. Upon receipt of the notice required by Section 814, the City
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Manager of the City or designee shall confer with the claimant
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 goodwill appraisal should be made.
The recommendation of the City Manager shall be co~unicated
to the City; if the City concurs in the recommendation, 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 th~s
decision shall be given to the business owner/claimant.
4. [Sec. 816] Business Records:
Authorization to Neqotiate
The owner of the business shall provide to the City such
business records as the City may require, including but not
limited 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 Net Amount
of Just Compensation for Loss of
Goodwill for Neqotiation Purposes
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
business; and
b. Any compensation for loss of goodwill the City
determines is included in payments made or to be made
under Section 500 of these Rules and Regulations.
6. {Sec. 818] Eminent Domain
Notwithstanding any other provision of Section 812 to the
contrary, in the event an eminent domain proceeding is brought by
the City to acquire any property, the owner of any business
thereon shall seek compensation for loss of goodwill in
connection with such proceeding, and the failure to do so shall
constitute a waiver of compensation for loss of goodwill.
-
I. [See. 819] Heqotiations. 'F.m; n~llt I)nm;I i n
..
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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
cond~m1'\ation, or defer negotiations or condAm1'\ation and the
deposit of funds in court for the use of the owner, or take any
other action coercive or misleading in nature, in order to compel
or induce an 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 ~minent domain, the City shall promptly institute
formal cond~~~ation proceedings. The City shall not
intentionally make it necessary for an owner to institute legal
proceedings to prove the fact of the taking of his property.
J. [Sec. 820] Notice of Decision Not to Acquire
Whenever the City has forwarded a Notice of Intent to
Displace, a Notice of Decision to Appraise, or has made a firm
offer and subsequently the City decides not to acquire the
property, the City shall serve a notice in writing on the owner,
all persons occupying the property and all other persons
potentially eligible for relocation payments and assistance. The
notice shall state that the City has decided not to acquire the
property. It shall be served not later than ten ( 10) days
following the date of the City decision not to acquire. Upon
receipt of such notice any person shall be deemed not to be a
displaced person.
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lC.. [Sec. 821] Incidental Expenses
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:
l. Recording fees, transfer taxes and similar expenses
inc~dental 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. [See.. 823] Purchase Price as Public Information
The purchase price and other consideration paid by the City
for real property is public information and shall be made
available upon request.
H.. [Sec. 824] 3ervice of. Notice
t
.
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] PROPERTY HANAG~ PRACTICES
A. [Sec. 901] ~hort TenD. Rental
If the City pennits an owner or tenant to occupy the
acquired real property on a rental basis for a short term or for
a period subject to termination by the City on short notice, the
amount of rent required shall not exceed the lesser of the fair
rental value to a short term occupier or a pro rata portion of
the fair rental value for a typical rental period.
B. [Sec. 902] Notice. to, Vacate
-
The construction or development of a project shall be so
scheduled that, to the greatest extent practi.cable, no eligible
person occupying real property shall be required to move his
business, without at least ninety (90) days' written notice from.
the City of the date by which such move is required. The City
shall notify each individual tenant to be di.splaced as well as
each owner-occupant.
,
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I
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. Material 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 following 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 Post-Ac~isition Tenants
1. [Sec.. 905] Notice of Status
The City shall inform prospective post-acquisition tenants,
before they occupy the property, that the property has been
acquired for a public use and will be available only in the
inter~ between acquisition and development and that development
for such use 1II~Y result i.n terminati.on of the tenancy sooner than
would otherwise be expected.
The City shall also infor.m prospective post-acquisition
tenants regarding the projected date of displacement and,
periodically, shall inform post-acquisition tenants of any
changes i.n such date.
2. [Sec. 906] Notice to Vacate
A post-acquisition tenant who occupies acquired real
property on a rental basis for a short term and who is informed
that the property has been acquired for a public use shall be ..
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given at least thirty (30) days' written notice of termination of
the tenancy.
3. [Sec. 907] Eliqibility for Relocation
Assistance and Payments
Post-acquisition tenants are not eligible 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 the
effective date of these Rules and Regulations who are not so
informed and who move as a result of a written order from the
City to vacate are eligible for relocation assistance and
payments, except where they are evicted in accordance with
Section 903 of the Rules and Regulations.
4. [Sec. 908] Hardship Cases
When the displacement of a post-acquisition tenant causes a
hardship for that person because of a crltical housing shortage,
age, handicap, infirmity, lack of financial means or other
circumstances, the City may provide relocation assistance and
payments.
.
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Adopted and approved this 5th day of September, 1989.
D~ IM~
I hereby certify that the foregoing Resolution No. 7891(CCS)
was duly adopted by the city council of the city of Santa Monica
at a meeting thereof held on September 5, 1989 by the following
Council vote:
Ayes: Councilmembers: Abdo, Finkel, Genser, Katz, Mayor
Zane
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Jennings, Reed
ATTEST:
~.
Cl.ty
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CITY OF SANTA MONICA
INTER-DEPARTMENT MEMORANDUM
DATE: September 1, 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 3D,
1989.
Please attach this page to your staff report.
Thank you.
1\,." t,..~
SEP - 5 1 9
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