R-7891
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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-Profi t
Organizations and other Non-Residential Entities attached hereto
as an exhibit and incorporated herein by reference, are hereby
adopted.
BBC~ION 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:
~W'-~
ROBERT M. MYERS
city Attorney
: attachment
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.....
CITY OF SANTA MONICA
RULES AND REGULATIONS
FOR IHPLEHElft'ATION OP Jl"WS
CALIFORNIA RELOCATION ASSISTANCE LAW
FOR DISPLACED BUSINESSES
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RULES .AND REGULATIONS
FOR IHPT.~JfEN'rATIOH OF THE
CALIPORHIA RELOCATION ASSISTANCE LAW
FOR DISPLACED BUSINESSES
I. [Sec. 100]
GEHE~
A. [Sec. 101] 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 fram 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 wbole; 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 conqestion 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 7267.9(a) of the California
Goverruaent Code, and are in conform! ty wi th the Relocation
Assistance Law and the Relocation Assistance and Real Property
Acquisition Guidelines adopted by the Department of Housing and
Community Development (the ttGuidelines").
c. [Sec. 103]
Effective Date; Applicability
The effective date of these Rules and Regulations shall be
the date of their adoption by the Ci ty. These Rules and
Regulations shall be applicable to all displacement and
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acquisition occurr~n9 after their adoption by the City.
These Rules and Regulations supersede any other Rules and
Regulations for Relocation previously adopted by the City,;
provided 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 project. Such
payments shall be subject to the availability of funds for such
purposes.
E. [Sec. 105]
~:xceotion from. Relocation Reaui~nt8
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
cond~nat:ion, or redevelopment of surrounding lands, and if
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
paragra.ph 1 the City shall notify the property owner in
writing, of the following:
(a) The City's 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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P. [Sec. 106J
Priori tv of Pederal Law
With respect to a federally funded project, the City ;hall
make relocation assistance payments and provide reloc~t~on
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. 101]
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. [Sec. 201]
DEfINITIONS
Acauisition
hAcquisitionh means obtaining ownership or possession of
real property by purchase, eminent domain, or any other lawful
means.
B. [See. 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. [Sec. 203]
AveraGe Annual Net Earn.1ngs
"Average annual net earnings" means one-half of any net
earninqs 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 earnin9's~
and 1ncludes 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 determi.ned 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. [See. 204]
AveraGe Ifonthly Incoae
"Average monthly income" means gross income divided by
twel ve.
B. [Sec. 205]
Business (from Govt. Code Sec. 7260 (d)
"Business" means any lawful activity, except a
operation, conducted prim~~ily:
farm
1. 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 orqanization; 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. [Sec. 206]
Department
"Department" means the California Department of Housing and
Community Development.
H. [Sec. 207]
Displaced Business
(from Govt. Code Sec. 7260(c)
"Displaced business" means any business which qualifies as a
displaced oerson under Section 209 hereof.
I. [Sec. 208]
Displaced Parm Operation
"Displaced farm. operation" means any farm. operation which
qualifies as a displaced person under Section 210 hereof.
J.
[Sec. 209J
Displaced Person
"Displaced person If means any person who moves
property, or who moves his personal property from real
as a result of:
from real
property,
1. The acquisition of such real property, in whole or in part,
by the City or by any person having an agreement with or
actinq 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 agreement, 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 housinq made available on a
permanent basis by the City, a "displaced" person Shdll 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 right of
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possession at the time of moving arose after the date of the
Cityis 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 aqreement.
A utility which relocates its poles~ posts, wires~ conduits,
cables, pipes, lines and necessary fixtures and equipment located
in, alonq, 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]
Bconqmic 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 aqricultural products
or cO~Qdities~ 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.
x.
[See. 212)
Federal Project
"Federal project" means any direct federal project or any
project receiving federal financial assistance.
H.
[See. 213]
(1ro88 Income
"Gross income" means the annual income from all sources of
each m~~ber of the family residing in the household who is
eighteen (18) years of age or over I 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 detexmines, on a case by case basis
that the use of the twelve (12) month period prior to
displacement would resul t in a hardship to the claimant, an
alternate period, actual or projected, may be used in such
exceptional situations.
o.
[See.. 214)
Rllnd.i.caooed Bou.~b~ld
-Handicapped household" means a household in which any
member is handicapped or disabled.
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P. [Sec. 215]
Initiation of Heqotiations
"Initiation of neqotiationsR 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)
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, if any, secured
thereby, including but not limited to deeds of trust and land
sales contracts.
R. [Sec. 217]
Nonorofit Oraanization
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"Nonprofit organization" means a corporation, partnership,
individual or other pub~ic or private entity, engaged in a
business, professional or _nstitutional activity on a non-profit
basis, necessitating fixtures, 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 dwellinq, 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 propertYJ
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 foregoing
interest by devise, bequest, inheritance or operation of law, the
tenure ot ownership, but not occupancy, of the succeeding owner
shall include the tenure of the preceding owner.
'l. [sec. 219]
Person
.Person- means any individual,
corporation association.
f.lllllltly,
partnership,
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u. [Sec. 220]
~ersonal 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 is
non-compensable (other than for moving expenses) under the state
law of eminent domain.
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]
Post-Acquisition Tenant
"Post-acquisition tenant" means a tenant who lawfully
commences to occupy property only after the City acquires it.
w. [Sec.. 222]
Prepaic;l 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]
Public Use
"Public use" means a use for which real property may be
acquired by eminent domain.
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III. [Sec. 300]
RELOCATIOlt ADVISORY ASSISTANCE
(from Govt. Code Section 7261)
A.
(See. 301)
Advisory ABsistam;:~ 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 person occupying property
immediately 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 eligible persons as to
relocation benefits and assistance
requirements therefore, as well as
obtaininq such benefits and assistance:
2. Determine the extent of the need of each eligible person for
relocation assistance;
L
the
and
the
availability of
the eligibility
procedures for
3. Provide current and continuing info~~tion 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;
Assist each eligible, displaced person
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;
4-.
to
complete
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 ci.rc1!1tU~tances. Such relocation process
shall sAtisfy the requirements of Title VI af 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 eliqible persons infor.mation concerning federal
and state housinq programs, disaster loan and other proqramR
administered by the Small Business Administration, and other
federal or state programs offerinq 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, training,
health and welfare;
9.
Inform all persons who are expected to be
the eviction policies to be pursued in
project.
displaced about
carrying out the
D..
[Sec. 302]
Information Program
1.
[See. 303 J
Gener~l Infonaati.on
The City shall establish and maintain an information program
utilizinq meetings, and other mechanisms, for keepinq occupants
of the property which the City is acquiring informed on a
continuing basis about its relocation program. The criterion for
selectinq amonq various alternative mechanisms shall be the
likelihood of actually communicating infor.mation to such persons.
Legal publications, legal ads in local newspapers of general
circulation and sLmilar 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 Contact
As soon as practicable following the initiation of
negotiati.ons 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 info~~tion and assistance. The City
shall maintain personal contacts with occupants of the property
to the m~~imum extent practiCable.
3.
[Sec. 305]
Infouaa,tion Stataaent:
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 infor.mation:
1.
-
A general description of the nature and types of
that will be undertaken and identification
activities
of the
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displacement 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 without
at least 90 days' written notice from the City;
3.
A general description of types of relocation
available, including general eligibility criteria,
caution against premature moves that might result in
eligibility for a payment;
payments
and a
loss of
4.
of the City's relocation program and a
relocation services and aids that will be
Identification
description of
available:
5. Encouragement to contact the City's relocation consultant
and cooperate with staff, and the address, telephone nQmber
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 Sl~1Il!ft~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
occupants.
4.
[Sec. 306]
Notice of Eliaibilitv Status
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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]
Lanauaae of Infoxmatlon IIaterial
Information ~~terial shall be prepared in the language(s)
most easily understood by the recipients. In displacement areas
where there are signif.:.cant concentrations of persons who do not
read, write, or understand English fluently, the native language
of the people should be used and all infor.mational material
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should be provided in the native language(s) and English.
6.
[Sec. 308)
Method of Delivery of
Informational Material
To assure receipt of the informatLonal 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]
Determdnation of Relocation e==ds
1.
(Sec. 310]
Interviews
As soon as practicable followinq 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 counselinq 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 each 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 infor.mation by other means.
a. [See.. 311J
1llfo~tion 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 limiting accessibility;
(3) Area of preferred relocation:
(4) Ownership or tenant;preferenc8;
(a) loeational factors including, among others, public
utilities.
b.. [Sec. 312] Coordination with Other ,Agencies
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
activi ties, if any, of other agencies. Gathering of data
pertinent to social service referrals of eligible persons shall
be planned in cooperation with social service aqencles. ~
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c.
[See. 313]
Jpterview 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
deteonined.
2.
[Sec. 314]
Relpcation 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 person authorized in
writing by each person) shall have the right to inspect such
documents containing information relating to h~ to the extent
and in the manner provided by law.
3.
[See.. 315)
UDdatina InfoXlDation
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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.. 3IG}
Relocation $ite Office
The City may, as it de~m~ necessary, establish a site office
which is accessLble to all area businesses who may be displaced
to provide relocation assistance. Office hours shall be
scheduled to acc~~date persons unable to visit the office
during normal business hours. The City may also make provision
for meeting with displaCed persons in their homes or places of
business.
B.
[Sec. 317]
Contractina for Relocation services
The City IIlaY enter.into a contract with any individual,
firm, Association, corporation or governmental city having an
established organization for conductinq relocation assistance
programs t for the purpose of providing relocation advisory
assistance.
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P.
(Sec. 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. [Sec. 400]
RELOCATION PLANS
As soon as practicable following the initiation of
neqotiations to acquire a parcel of real property in any
displacement area required for site ~provements, 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 insignificant amount of non-residential
displacement, the City is not required to prepare such a Specific
Relocation Plan.
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V. [Sec. 500]
RBLOC1l'l'ION PAYMElft'S TO _DI~PLACBD BUSnmSSES
A.
[Sec. 501]
Payments J;\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 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]
Kovina Exoenses f
Loss - of Pronertv Search Bxoenses
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1.
[Sec.. 503]
Actual Reasonable IIovina Exoenses
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 claLm 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) ~~les 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
determi.ned 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, ita agents or employee) in
the process of moving, where insurance covering such
loss, theft, or damage is not reasonably available;
f.
The cost of
reassAmhlinq,
equipment, or
and inventory
disconnecting, dis~l'\tling, removinq,
reconnecting and reinstalling machinery,
other personal property (including goods
kept for sale) not acquired by the City,
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including connection charges ~posed
utilities for starting utility service;
by
public
g. The cost of any addition, improvement, alteration or
other physical change in or to any structure or its
premises in connection with the reassembling,
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 fallowing limitations:
(1) The cost shall
displacement;
be
directly
related
to
(2) Reimbursable 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;
( S) The Ci ty shall deduct, on the basis of a
reasonable estimate, the amount, if any, realized
by the displaced business concern a8 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, perDlit, or certification
requJ.red by a displaced business concern to the extent
such cost is necessary to the re-establishJl.ent of its
operation at a new location;
i. The reasonable cost of any professional services
(including but not 1 imlted to architects', attorneys' ,
or engineers' fees, or consultants' charges) necessary
for planning the move of personal property, movi - q the
personal property, or installation of re x:ated
personal property at the replacement 8ite~
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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, reimbursement 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 cla~ed at the
highest price offered after reasonable efforts have been
made over a reasonable period of t~e to interest
prospective 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
i tam 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 re;mhursement for the
expense of movinq such property shall not exceed the difference
between the cost of replacinq the same with a comparable item
available on the market and the amount which would have been
received for.. 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 m.~:rketinq of products, cC"!"I!!'.ndities,
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.
Actual Direct Losses of Tanaible
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 108ses shall
not exceed an amount equal to the esti~ated reasonable cost of
2.
[Sec. 504]
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moving the personal property, as determined by the City.
to such limitation, the actual direct loss of personal
for which claims may be filed shall be deter.mined by
either:
Subject
property
appraising
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 10s8 is claimed at the
highest price offered-after reasonable efforts have been made
over a reasonable period of t~e to interested prospective
purchasers. The reasonable cost of an 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 Reasonahle BxDenses in
Searchina for a ReDlac.-ent Business
A displaced business shall be compensated, for actual
reasonable expenses incurred in searchinq for a replacement
business up to a maximum reimbursement of $1,000, including
expenses incurred for:
a. Transportation;
b. Heals and lodqinq away from hOJDe;
c. 'rime spend" 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~
d. Fees paid to a real estate agent, broker, or other
professional to locate a replacement business.
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c.
[Sec. 506]
Altern~te Payments
1.
[sec. 507]
Determination of pa~nts
a.
[Sec. 508]
Amount 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.
b.
[Sec. 509]
Detexmination of Humber
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;
The extent to which- substantially identical
intimately interrelated business functions
-pursued and business and financial affairs
comminqled;
( 3 ) The extent to which such entities are held out to
the public, and to those customarily dealing wLth
such entities, as one business;
(2)
or
are
are
(4) The extent to which the same person or closely
related persons own, control, or manage the
affairs of the entities.
2..
(Sec. 510]
Eliaibilitv
a.
(Sec. 511]
Business IOther than
Nonp~fit Orq~ization)
A cUsplaced. business (except a nonprofit organization) is
eligible for the payment provided for in Section 508 only if the
City determines that:
(1) The business cannot be relocated without a
substantial 10s8 of its existing patronage, based
on a consideration of all pertinent circumstances
including such factors as the type of business
conducted, the nature of the clientele, the
relative t~rtance to the displaced business of
- 20 -
(2)
(a)
(b)
(C)
-
e
its present and proposed location, and the
availability of a suitable relocation site:
The business is not part of a commercial
enterprise having 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:
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
business; 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 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 JDake 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 $2,500 minimum
amount, provided that the City otherwise determines that such
businea8 is in tact a bona- fide business.
b.
Roft1)%'Of$.1- ~~lIjatioD
[Sec. 512}
In the case of a nonprofit organization,. no payment shall be
made under Section 508 unless the City determines that:
( 1) The nonprofit organization cannot be relocated
without a substantial 1088 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 havinq at least one other establishment
not being acquired which is engaged in the same or
similar activity.
D.
{See. 513]
Business .Supplement Payment for
Certain Business Qccu~t~
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.
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VI.
[Sec. 600]
~. AND PAYlIElrl PROCEDURES
A.
[5ec. 601]
Filinq of ClaimA
All claLms for relocation assistance and payments filed w~th
the City shall be submitted within eiqhteen (lS) months of the
date on which the claimant 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 Clai~
1.
[sec. 603]
Kovinq Expenses
A.
[sec. 604]
c;OIlIIDercial Moves
Except in the case of a displaced resL 'nt or displaced
business electing to -31f move, a claim for f~yment ;f actual
reasonable moving expenses shall be supported by a bill or other
evidence of expenses incurred.
Each claLm in excess of $1,000 for the costs incurred by a
displaced business in movinq the business operation shall be
supported by competitive bids in such nl,!~per as are practical.
If the City determines that compliance with the bid requirement
is impractical, or if estimates in an amount less than $1,000 are
obtained, a cla~ may be supported by estimates in lieu of bids.
b.
[sec. 605]
SeJ..f Moves
Without documentation of moving expenses actually incurred a
displaced resident or displaced business electing to self move
may submit a claim. for movinq expenses to the City in an amount
- not to exceed the estimated cost of moving cOllilluarcially. The
estimated cost of moving commercially shall be based on the
lowest responsible bid or estimate fram at least two (2)
reputable moving firms submitted by the claimant to the City
prior to the JDOve. The estimated. cost of moving commercially
shall include the cost, if any, of obtaininq bids or est~mAte8.
c.
[Sec. 606)
B~tion fraa Public Utilities
COBI..ission 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 Commission. The City may
solicit competitive bids from qualified bidders for perfor.mance
of the work. Bids submitted in response to such solicitations
shall be exempt from regulation by the Public Utilities
COJIIIDission.
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2.
[Sec. 601]
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 Earn~qs
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 s~ilar evidence
acceptable to the City.
c.
[See. 609]
Payment of Moving Bxpenses
1.
[Sec. 610]
Advance pa".ent
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 Pavaent
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]
1fethoda Rot 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 Pavaents to
pe;-sons Mov~q without Rotice
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 DlOVed. 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 tLmely notice and offers of relocation assistance and
benefits.
E.
[See. 614]
Termination of Relocation Ass istance
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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VI: I [See. 700] GlUEVAllc;E PROCEDURE
A. [See. 701] Right of Review
Any person who believes himself aggrieved by a deter.mination
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, submit
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 requestinq an informal oral presentation.
The City Manaqer, 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 choosinq. 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
detennination on_ the claim. The City Manager shall make a
S1l1ll1ll.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 Manaqer denies or refuses to review
reconsider a claim,. the City -Hanager's notification
claimant of this determination shall inform the claimant
reasons and the applicable procedure for obtaining review
decision.
or
to
of
of
to
the
the
the
c.
[Sec. 703]
Request for Formal Review
a.nd. Reconsideration
Within 30 days after the mailing of the decisi.on of the City
staff as provided. herein or the decision of the City Kanaqer
following- an oral presentation of the grievance as hereinabove
provided, a complainant ~~y file a written request for formal
review and reconsideration by the City Counci.l. The complainant
may include the request to review any statelllent of facts within
the complainant. s knowledge or belief or other material which may
have a bearing on the appeal. Upon a showinq of good cause, the
time within which to file an appeal mAY be extended by the City
Hanager.
The
complaint
City Council shall consider every
regardless of fOJ:m, and shall, if
aggrieved
necessary,
person's
provide
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assistance in preparing the written request for review.
0..
[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
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. 10S]
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 regulatLons.
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 followinq:
(1) A1l 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 information which the City Council
its designee, in its discretion, obtains
request, investigation or research, to insure
and full review of the claim..
or
by
fair
Findinos and Recommendati.ons by
City Councilor its Desi.qc=~
The City Councilor its desiqnee shall prepare findings and
recOJllllendations and translllit the same to the City. A copy
thereof shall be mailed to the complaJ.nant. The City Councilor
its design.~= shall issue its findinqs and r8COBIDlSndations within
three weeks or the conclusion of the hearing. In the case of a
finding of dism1.ssal for untiJlleliness or for any other reason not
based on the merits of the claim, the findinqs and recOJllP\8Jldation
sha.ll be issued within 10 days of the teDlination of the hearing.
P.
(Sec. 706)
- 27 -
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The findinqs and recommendations of the City Councilor its
designee shall include, but shall not be limited to:
( 1 )
Whether the City has complied with State law
where applicable with Federal law, pertaining
relocation;
and
to
( 2 )
The recommendations of the City Councilor
designee, including any recommendation
modification or reversal of the City Manager's
his designee's initial determination;
its
for
or
(3)
The factual and legal basis upon which
findings and recommendations rest, including
pertinent explanation or rationale;
the
any
G.
[Sec. 107]
JO,int 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.
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. 109]
Review of Piles by Claimant
Except to the extent that confidentiality of material LS
protected by law or its disclosure is prohibited by law, the City
shall permit the -claimant to inspect all files and records
bearing upon his claim or the prosecution of the claimant's
grievance. The City may impose 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.
[Sec. 710J
Reccqaendations by nb:d Party
Upon agreement between the claimant and the City, a mutually
acceptable third party or parties may review the claim and make
adviSOry recommendations thereon to the City for its final
dete:cm.i.nation. In reviewing the claim and making recolDlllendationa
to the City, the third party or parties shall be guided by these
Rules and Regulations.
It.
[See.. 711]
Effect of DeteTnli nAtion on Other Persons
The principles established in all d~tel:DLi.nation8 by the City
shall be cons idered as precedent for all eligible persons in
similar situations regardless of whether or not a person has
- 28 -
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filed a written request for review. All written determinations
shall be kept on file and available for public review.
L.
[Sec. 713]
Judicial Review
Nothinq
preclude or
claim upon
available.
in these Rules and Regulations shall in any
lLmit a claLmant from seeking judicial review of
exhaustion of such administrative remedies as
way
his
are
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VXII.. [See. 800 I ACOUISITION PR1CrICES
Acquisition of Property by Heqotiation
(from Gavt. 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 50 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 sewers, waterlines or
appurtenances, drains, septic tanks, or storm water drains.
A.
[Sec. 801]
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 min;mtllD., that:
a. A specific area is being considered for a particular
public use;
b. The owner's property is located within the area;
The status of the City's decision on whether or not
acquire the property, including a statement that
deteDDination has b:::::n made by the City to acquire
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.
c.
to
no
the
2.
[Sec. 805]
At
appraise
:InfO:Em8.tion statellent:
Prope..:t..J" Acquisiti.on ~edures
the time the City notifies an owner of its decision
real property it shall furnish the owner with
to
an
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explanation of its land acquisition procedures, describing in
non-technical, understandable terms the City's acquisition
procedures and the principal rights and options available to the
owner. Such stateDlent shall inform the owner of the property
that if the City decides to acquire the subject property certain
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~m"ant, the City will offer to acquire the uneconomic
r~!fInant, 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.)i
d. A statement that if the owner is not satisfied with the
City's offer of just compensation he wiTI 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
condemnation 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 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. 806J
Establishment of Just eo.nensation
Before neqotiations are initiated to acquire property,
City shall establish an amount it believes to be
compensation for the property, which aaount shall, in no
be less than the City's approved appraisal of the fair
value of the property.
the
just
event,
market
~
The determination of just compensation shall be based. upon
consideration ofl
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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 disreqarded
in determining the compensation for the property.
E.
[Sec. 807]
Uneconomic P-Ilant
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 rA~~ant the City shall offer to acquire
the r,:.m_flant 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.
F.
[Sec. 808]
Ini.tiation of Reqotiations
1.
{Sec. 809]
Written Qffer
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 amount 80 established.
2. {Sec. 810]
Statement of the Basis of Just COIIlpeDsati.on
At the time the City makes its offer
it shall provicle the owner with a written
for deter.mination of just compensation.
include the following:
a. A general statement of the public use for which the
property is to be acquired;
to acquire the property
statement of the basis
The statement shall
A description of the location and extent of
property to be taken, with sufficient detail
reasonable iclentification, and the interest to
acqui.red;
c. An inventory identifying the buildings, structures,
fixtures, and. other improvements;
b.
the
for
be
d. A recital of the amount of the offer and a statement
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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 occupant;
(4) 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;
(5) Does not reflect any consideration for loss of
goodwill for which the owner .ay claLm 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 estimated just compensation for the partial
acquisition between the value of the property being
taken ana the amount of d~ml\ll_ge, if any, to the
remainder of the larger parcel from which such property
is taken.
G.
[Sec. 811]
Loss of Goodwill
Nothinq in this Section 800 shall be construed. to deprive a
tenant of the riqht to obtain payuaent for his property interest
as othexwise provided by law.
As 800n as practicable after the initiation of negotiations
the City shall provide written notifi.cation to the owner of a
business conducted on the real property to be acquired or on the
remainder, who is not also the owner of the real property,
concerninq his 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.) and these Rules and Regulations
(Section 812).
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H.
[Sec. 812]
~ompensat.ion for Loss of GoodwilJ..
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]
~~pensation Generally
With respect
property acquired
property is part
compensation to be
1055 of goodwill,
and Requlations.
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 remainder 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 loss of
such owner of a business shall first have proved all
followi.ng:
goodwill
of the
a. The loss is caused by the .acquisition 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
payments under
Regulations:
the loss will not be
Section 500 of these
included
Rules
in
and
d. Compensation for the loss will not be duplicated in the
compensat~on otherwise paid to the owner.
2.
(Sec. 814]
fiotice of Intent to Claim Loss
of Goodwill
Prior to
acquired by
discontinues,
it intends to
813.
a business completinq its relocation from property
the City, or prior to the date such business
the owner of such business JJJAY notify the City that
attempt to make the proofs providec1 for in Section
3.
[Sec. 815]
Conference to Discuss Bliq1bility
to Receive coaoensation for Loss of
Goodwill
Upon receipt of the notice requi.red by Section 814, the City
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Manager of ~he 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 communicated
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 this
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/clai~ant 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.
calculation of Net Amount
of Just Ca.oensation for Loss of
Goodwill for Reaotiation 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:
5.
[Sec. 817]
a. The amount the City believes for negotiating purposes
to be the total 1lI111t)unt of loss of goodwill of the
business: and
b. Any compensation for loss of goodwill the City
determ;'Qes is included in payments made or to be made
under Section 500 of these Rules and Regulations.
6.
[Sec. 818]
Bllinent Doaain
Notwi.thstanding any other provision of Section 812 to the
contraxy, in the event an eminent domain proceedLng 1s 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..
[sec. 819)
IIeaoti~ti.ons; R.fn~nt pn.ut;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 j~st
compensation is warranted, an appropriate pr~ce
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
condA1ft1'\ation, or defer negotiations or cond4?tlll1'\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 af
the power of eminent domain, the City shall promptly institute
formal cond~~tion proceedings. The City shall nat
intentionally make it necessary for an owner to institute legal
proceedings to prove the fact of the taking of his property.
J.
(Sec. 820]
Hot~ce of Decision Hot to Acquire
Whenever the City has forwarded a Rotice of Intent to
Displace, a Notice of Decision to Appraise, or has made a fiDll
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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K. [See. 821] Inci.dental Eroenses
If the real property is acquired by purchase, the City shall
re;mnurse 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 followi.ng:
1. Recording fees, transfer taxes and similar 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 PWblic Information
The purchase price and other consideration paid by the City
for real property is public information and shall be made
available upon request.
II.
[Sec. 824]
~Lvice of Ratice
!
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. [See. 900] PROPER'rY HAD.';~14BN"r PRAC'rICBS
A. [Sec. 901] Short 'l'e~ Rental
If the City pennits an owner or tenant to occupy
acquired real property on a rental basis for a short term or
a period subject to te%1ll.i.nation by the City on short notice,
amount of rent required shall not exceed the lesser of the
rental value to a short terJll occupier or II. pro rata portion
the fair rental value for a typical rental period.
the
for
the
fair
of
B.
[Sec. 902]
Rotice to Vacate
The construction or development of a project shall be so
scheduled that, to the greatest extent practicable, no eligible
person occupyi.ng 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 requJ.red. The City
shall notify each individual tenant to be displaced.s well as
each owner-occupant.
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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 tLme following notice;
6.
The eviction is required by State or local law
cannot be prevented by reasonable efforts on the
of the City.
and
part
Eviction pursuant to this Section
tenant's right to relocation benefits
otherwise entitled to such benefits.
shall
where
not
the
effect
tenant
a
is
D.
[Sec. 904)
Status of Post-Acquisition Tenants
1.
[Sec. 90S]
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
interim bet"'-;~n acquisition and development and that development
for such use may result in termi.nation of the tenancy sooner than
would otherwise be expected.
The City shall also inform prospective post-acquisition
tenants regarding the projected date of displacement and,
periodically, shall infor.m post-acquisition tenants of any
changes in such date.
2.
[Sec. 906]
Notice to Vacate
A
property
that the
post-acquisition tenant who occupies acquired real
on a rental basis for a short term and who is informed.
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]
E1igibility 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, past-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.
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Adopted and approved this 5th day of September, 1989.
D~
IMa~
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:
~ty