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R-7891 . . 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: - 1 - e e 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 - 2 - e e ..... CITY OF SANTA MONICA RULES AND REGULATIONS FOR IHPLEHElft'ATION OP Jl"WS CALIFORNIA RELOCATION ASSISTANCE LAW FOR DISPLACED BUSINESSES e - r 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 - 1 - e e 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. - 2 - e . ' e 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. - 3 - e e 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 - 4 - - e 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 - 5 - e e 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. - 6 - e e 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 - - "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, - 7 - e e 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. - 8 - e e 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 - 9 - e e 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 - 10 - e e 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 - - 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 - 11 - e -e 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. ~ - 12 - - e 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 - - - 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. - 13 - . e 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. - 14 - - . 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. - is - . e 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 - - 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, - 16 - - . 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~ - 17 - e e 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] - 18 - e . 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. - 19 - e e 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 - 21 - e e 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. - 22 - e e 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. - 23 - e eJ 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 - 24 - 'e e 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. - 25 - - e 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 - 26 - e e 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 - e e 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 - e e 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 - 29 - e e 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 - 30 - e e 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 - 31 - e e 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 - 32 - e e 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). - 33 - e e 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 - 34 - e e 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 - 3S - e e 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. - 36 - e e 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. - 37 - . e '- 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 - 38 - e e 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. - 39 - . . e e 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