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HomeMy WebLinkAboutCity Council Resolution 2502 RESOL~ON NO.: 2502 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING RELOCATION ASSISTANCE RULES FOR NON-RESIDENTIAL PROPERTIES WHEREAS, the City must, from time to time, construct civic improvements for the benefit of all its citizens; and WHEREAS, the construction of such civic improvements may require the acquisition of real property and the reloeation of business activities conducted thereon; and WHEREAS, it is necessary and appropriate for the City to adopt written rules to govern the manner in which assistance and compensation will be rendered to persons who are required to relocate their business activities from property acquired by the City, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saratoga as follows: 1. The Relocation Assistance Rules of the City of Saratoga for Non- Residential Properties, a true copy of which is attached hereto as Exhibit "A" and incorporated by reference, are hereby approved and adopted and shall be applied with respect to any acquisition of non- residential real property by the City, through exercise of the City's power of eminent domain, where no federal funds are involved in any phase of the public project for which tile acquisition is made. 2. All relocation assistance provided by the City in connection with any such acquisition of real property shall comply with the relocation assistance laws of the State of California as contained in Title 1, Division 7, Chapter 16 (commencing with Section 7260) of the Government Code, and the guidelines adopted thereunder as set forth in Title 25, Chapter 16 (commencing with Section 6000) of the California Administrative Code. In the event of any conflict between the Rules set forth in Exhibit A attached hereto and the state law or guidelines referred to herein, the state law or guidelines shall be controlling. *** -1- The above and foregoing resolution was passed and a,d~t~ed at a regular meeting of the City Council of the City of Saratoga held on the 26 day of July, 1988, by the following vote: AYES: Counci!mejrbers Clevenger, Moyles~ Pe~_erson, Stutzman and Mayor Anderson NOES: Nc~e ' Mayor' "' " City Clerk -2- RELOCATION ASSISTANCE RULBS OF THE CrrY OF SARATOGA FOR NON-RESIDENTIAL PROPERTIES 1. TITLE These provisions shall be known and may be cited as the Non-residential Relocation Assistance Rules {"Rules") of the City of Saratoga ("City"). 2. PURPOSE These Rules are to assist in the implementation of payments and the administration of relocation assistance pursuant to Section 7267.8 of the Government Code of the State of California ("Government 3. EFFECTIVE DATE; APPLICABILITY 3.1 These Rules shall become effective upon adoption by resolution of the Saratoga City Council. 3.2 These Rules shall apply to all reloeations caused by the City~s acquisition of property which is not used or occupied as a residential dwelling. · 4. DEFINITIONS 4.1 Acquisition: Transfer of title to the City through Final Order of Condemnation, Order of Immediate Possession, or close of purchase escrow. 4.2 Business: Any lawful activity, except a farm operation, conducted primarily: (a) 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; or (b) For the sale of services to the public; or (c) By a nonprofit organization; or (d) Solely for the purpose of Section 7262 of the Government Code, for assisting in the purchase, sale, resale, manufacture, processing or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not such display is located on the premises on which any of the above activities are conducted. 4.3 Displaced Person: Any person who moves his personal property from real property, either as a result of the acquisition of such real property, in -1- whole or in part, by the City or by any person having an agreement with or acting on behalf of the City, or as a result of a written order from the City to vacate the real property, for public use. This definition shall be construed so that persons displaced as a result of City action receive rel~eation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for or in connection with a public use where the City is otherwise empowered to acquire the property to carry out the public use. A "displaced person" shall not include: (a) Any person who, at the time of the City's acquisition of the real property, was not a tenant or occupant in lawful possession of the real property and whose right of possession at the time of moving arose aiter the date of the City's acquisition of the real property and with knowledge of such acquisition; or (b) Any tenant who moves as a result of his breach of his tenancy agreement. 4.4 Eligible Person: Any displaced person who is or becomes lawfully entitled to any reloeation payment under these Rules. 4.5 Initiation of Negotiations: The day on which the City made the first personal contact with the property owner or his representative and furnished him with a written offer to purchase the real property. 4.6 Owner: A person is an owner of real property if he: (a) Holds fee title, a life estate, a 99-year lease with not less than 50 years to run from date of acquisition of the property for the project; or (b) Is the contract purchaser of any of the foregoing estates or interests; or (c) }]as a leasehold interest with an option to purchase. 4.7 Person: Person means any individual, partnership, corporation or association. 4.8 Personal Property: (Tangible Personal Property). Tangible personal property which is situated on the real property vacated or to be vacated by a displaced person and is noncompensable (other than for moving expenses under the State law of eminent domain) and, in the case of a tenant, 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 determines to move and for which the tenant is not compensated in the real property acquisition. In the ease 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 acquisition appraisals and the closing or settlement statement with respect to the real property acquisitions, provided that no item of property which is compensable under State and local law to the owner of real property in the -2- real property acquisition may be treated as tangible personal property in computing relocation payments. 5. PRIORITY OF FEDERAL LAW If the City undertakes a project with federal financial assistance and consequently must provide relocation assistance and benefits as required by federal law, these Rules shall not apply; but if an obligation to provide relocation assistance and benefits is not imposed by federal law, the provisions of these Rules shall apply. 6. RELOCATION is~881grANCE ADVISORY AND INFORMATION PROGRAM The City shall develop and implement a relocation assistance advisory and information program. Such program shall be administered so as to provide services which offer assistance to the relocatee to insure that all persons displaced from their places of business are assisted in reestablishing, if that is their desire, with a minimum delay. The program shall include: (a) Preparation and distribution of informational material to each prospective relocatee. This material shall be prepared and distributed as soon as is reasonably practicable following the initiation of negotiations and no less than ninety (90) days in advance of displacement. (b) Conducting personal interviews and maintaining personal contacts with potential reloeatees to the extent reasonably necessary. (c) Utilizing reasonable methods of public notice. 7. ELIC'JRn.rrY Relocation Assistance shall be made available to persons qualified pursuant to law and these Rules. 8. RELOCATION PAYMENTS The City shall make relocation payments to or on behalf of eligible displaced persons in accordance with and to the fun extent required by law and authorized by these Rules. 9. l~ll~!"hlG OF CLAIM~S All claims filed with the City shall be submired within eighteen (18) months of the date on which the claimant receives final payment for the property, or the date on which he moves, whichever is later. 10. ACTUAL REASONABLE MOVING EXPENSES 10.1 General: The City shall pay to an eligible displaced person the actual reasonable expenses specified below for moving his business. In all cases the amount of a payment shall not exceed the reasonable cost of accomplishing the activity in connection with which a claim has been filed. The moving and related expenses for which claims may be filed shall include: -3- (a) Transportation of property not to exceed a distance of 50 miles from the site from which displaced; (b) Packing, eraring, unpacking and uncrating personal property; (e) Insurance of personal property while in storage or transit; (d) The cost of disconnecting, dismantling, removing, reassembling, reeonneeting, and reinstailing machinery, equipment or other personal property (including goods and inventory kept for sale) not acquired by the City, including connection or starting charges imposed by public utilities for utility service. (e) Such storage of personal property, for a period generally not to exceed twelve (12) months, as determined by the City to be necessary in connection with relocation. (f) The reasonable replacement value of property lost, stolen or damaged (not through the fault or negligence of the displaced person, his agent, or employee) in the process of moving, where insurance covering such loss, theft or damage is not reasonably available. 10.2 Displaced Business Concerns: In addition to those compensable expenses set forth in subsection 10.1, a displaced business concern may file a claim for the following moving and related expenses: (a) The cost, directly related to displacement and subject to the limitation imposed by Paragraph (b) of this subsection, of other physical change in or to any structure or its premises in connection with the reassembling, reconnection with the reassembling, reconnection or reinstatlation of machinery, equipment or other personal property including modification of same to adapt to the replacement location. (b) Claims for payment under this subsection shall be subject to the following limitations: (1) Reimburseable costs shall be reasonable in amount. (2) The cost shall be found by the City to be required by law or to be necessary to the reestablishment of the displaced business. (3) The cost could not be avoided or substantially reduced at an alternate available and suitable site to which the business was referred. (4) The City shall deduct, on the basis of a reasonable estimate, the amount, if any, realized by the displaced business concern as compensation for comparable additions, improvements, alterations or other physical changes to the structure and premises acquired, as part of the payment made for the acquisition or lease of such structure and premises. (c) The cost of any City license, permit, or certification required by a -4- displaced business concern to the extent such cost is necessary to the reestablishment of its operation at a new location. (d) Where an item of personal property used in connection with any business is not moved but is replaced with a comparable item, reimbursement in an amount not to exceed: the replacement cost, minus any net proceeds received from its sale, or the estimated cost of moving, whichever is less. 10.3 Advance Payments: Payment may be made on behalf of a displaced person 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 small business operators. 10.4 Self-Moves: After securing a moving bid acceptable to the City, if a displaced business operator elects to self move, he may submit a claim for moving expense to the City in an amount not to exceed the bid. 10.5 Personal Property of Low Value and High Bulk: Where, in the judgment of the City, the cost of moving any item of personal property of low value and high bulk which is used in connection with any b~iness would be disproportionate in relation to its value, the allowable reimbursement for the expenses of moving such property shall not exceed the difference between the cost of replacing the same with a comparable item available on the market and the amount which could have been received for such property on liquidation. This provision may, in the appropriate situations, be applied to elaims involving the moving of stockpiles, sand, gravel, minerals, metals and similar property. 10.6 Documentation in Support of a Claim: (a) Except in the ease of a displaced business eondueting a self-move, as provided in subsection 10.4, a claim for payment under this section shall be supported by evidence of expenses incurred. Claims shall be supported by competitive bids or estimates in such numbers as are practical, to be determined by the City. (b) By written prearrangemerit with the City, the site occupant and the mover, the claimant or the mover may present an unpaid moving bill to the City, and the City may pay the mover directly. 11. ACTUAL DIRECT LOSSES OF TANGIBLE PEESORAL PROPERTY 11.1 General: The City shall pay to an eligible displaced person, for actual direct losses of tangible personal property as a result of moving or discontinuing a business operaton, in an amount determined by the City. 11.2 Determining Actual Direct Loss of Property: Actual direct loss of property shah be determined on the basis of the lesser of the following: (a) The fair market value of the property for continued use at its location prior to the displacement; or -5- (b) The estimated reasonable costs of relocating the property. The City may require that the owner first make a bona fide effort to sell the property. The proceeds realized from any sale of all or part of the property shall be deducted from the determination of loss. In calculating payment under this section, the reasonable cost of an effort to sell shall be added to the determination of loss. 11.3 Documentation to Support Claim: A claim for payment hereunder shall be supported by written evidence of loss which may include appraisals, certified prices, bills of sale, receipts, cancelled 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. 12. ACTUAL REASONABLE EXPENSES IN SEARCHING FOR A REPLACEMENT BUaINE{{S A displaced person who satisfies the pertinent eligibility requirements with respect to actual reasonable moving expenses, shall be eligible for payment in an amount not to exceed $500 in searching for a replacement business, including expenses incurred for: 12.1 Transportation; 12.2 Meals and lodging away from home; 12.3 Time spent in searching based on the hourly wage rate of the salary or earnings of the displaced person or his representative, but not to exceed $10 per hour; and 12.4 Fees paid to a real estate agent or broker to locate a replacement business. 13. MOVING EXPENSES - OUTDOOR ADVERTISING BUSINF_,SSES The owner of a displaced outdoor advertising business is entitled to payment for the reasonable cost of moving such displays, or their in-place value, whichever is lesser. 14. ALTERNATE PAYMENT FOR BU$~ RELOCATION 14.1 General: A displaced person who moves or discontinues his business who is eligible for relocation payments and who elects to accept the payment authorized in this section in lieu of any other payment authorized by these Rules shall receive a fixed relocation payment in an amount equal to the average annual net earnings of his business, except that such payment shall not be less than Two Thousand Five Hundred Dollars ($2,500.00), nor more than Ten Thousand Dollars ($10,000.00). For purposes of this section, the dollar limitation specified in the preceding sentence shall apply to a single business, regardless of whether it is carried on under one or more legal entities. 14.2 Requirements: Payment shall not be made under this section unless the City determines that: -6- (a) The business cannot be relocated without a substantial loss 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 importance to the displaced business of its present and proposed location, and the availability of a suitable relocation site; and (b) The business is not part of a commercial enterprise having at least one other establishment which is not being acquired for a project and which is engaged in the same or similar business. The sole remaining facility of a business which has been displaced from its principal location will not be considered another "establishment" for purposes of this section if such remaining facility: (1) Has been in operation for less than two years; and (2) Has had average annual gross receipts of less than $2,000.00 during the two taxable years prior to displacement of the major component of the business; or (3) Has had average annual net earnings of less than $1,000.00 during the two taxable years prior to displacement of the major component of the busines. (c) The displaced business: (1) Had average annual gross receipts of at least $2,000.00 during the two taxable years prior to the date of initiation of negotiations; or (2) The displaced business had average annual net earnings of at least $1,000.00 during the two taxable yeares prior to displacement; or (3) The displaced business contributed at least 33-1/3% of the total gross income of the owner(s) during each of the two taxable years prior to displacement. If in any case the City determines that the two-year period prior to displacement is not representative of average receipts, earnings, or income, it may make use of a more representative period. 14.3 Determination of Number 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: (a) The extent to which the same premises, personnel or equipment are shared; and (b) The extent to which substantially identical or intimately interrelated business functions are pursued and business and financial affairs are commingled; and (c) The extent to which such entities are held out to the public, and to those eustomarily dealing with sueh entities, as one business; and (d) The extent to which the same person or closely related persons own, control or manage the affairs of the entities. 14.4 Requirement - Nonprofit Organizations: In the ease of a nonprofit organization, no payment shall be made under this section unless the City determines that: (a) The nonprofit organization cannot be relocated without a substantial loss of its existing patronage (the term "existing patronage" as used in connection with the nonprofit organization includes the membership, persons, community, or clientele served or affected by the activities of the nonprofit organization); and (b) The nonprofit organization is not part of an enterprise having at least one other establishment not being acquired which is engaged in the same or similar activity. 14.5 Net Earnings: (a) The term "average annual net earnings" as used in this section means one-half of any net earnings of the business operation, before federal and state income taxes, during the two taxable years immediately preceding the taxable year in which the business operation moves from the real property acquired for such project, or during such other period as the City determines to be more equitable for establishing such earnings, and includes any compensation paid by the business to the owner, his spouse, or dependents during such period. The term "owner" as used in this section includes the sole proprietor in a sole proprietorship, the principal partners in a partnership, and the principal stockholders of a corporation, as determined by the City. For purposes of determining a principal stockholder, stock held by a husband, his wife and their dependent children shall be treated as one unit. (b) If a displaced person who conducts a business elects to receive a fixed payment under this secton, he shall provide proof of his earnings from the business operation to the City. Proof of earnings shall be established by income tax returns, financial statements, and aeounting records or similar evidence acceptable to the City. 15. TERMINATION OF BELOCATION ASSISTANCE The City's reloeation obligations shah 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. 16. ~-VICTION Eviction shall be undertaken only for one or more of the following reasons: 16.1 Failure to pay rent, except in those cases where the failure to pay is legally excused; -8- 16.2 Performance of a dangerous or illegal act in the leased premises; 16.3 Material breach of the rental agreement and failure to correct breach after notice; 16.4 Maintenance of a nuisance and failure to abate within a reasonable time following notice; 16.5 Refusal to accept one of a reasonable number of offers of replacement location; 16.6 The eviction is required by state or local law and cannot be prevented by reasonable efforts on the part of the City; 16.7 Failure to vacate in accordance with an agreement with the City; or 16.8 Failure to obey a court order authorizing the City to take possession. 17. CITIZEN PARTICIPATION 17.1 All persons who will be displaced and community groups are encouraged to participate fully and meaningfully in reviewing any relocation plans and monitoring any relocation assistance programs. 17.2 The City shall permit timely access to all appropriate documents relevant to the relocation program, provided that the City may reasonably restrict access to material to preserve its confidentiality, to preserve its privileged status, or to prevent disclosure prohibited by law. The City shall ensure that the information of the identity of eligible persons is provided in a manner designed to avoid such disclosure. This obligation to avoid improper disclosure shall not affect any right the eligible person, or his authorized designee, may have to inspect such documents. 17.3 The City shall provide appropriate means, including public meetings for all persons, groups and committees, to communicate any comments or objections regarding the relocation plans and shall endeavor to establish means for making any appropriate response to such comments or objections. 18. GRIEVANCE PROCEDURES 18.1 Any person aggrieved by a determination as to eligibility, the amount of payment, the failure of the City to provide comparable permanent or adequate temporary replacement facilities, may have his grievance reviewed by the City Manager or his designee. Within six (6) months after displacement, any person desiring a review of a determination shall submit his grievance, together with any information he believes relevant, in writing, to the City Manager and request such review. 18.2 Any person dissatisfied with the review of his grievance by the City Manager may, within thirty (30) days after receiving the decision, file an appeal in writing to the City Council. 18.3 The City Council shall hold a de novo hearing on the matter, after giving -9- prior notice thereof to the claimant, and shall render a final decision on the claim. 19. SEYERABILITY If any provision of these Rules or the application thereof is held invalid, such invalidity shall not affect other provisions or applications of the Rules which can be given effect without the invalid provision or application, and to this end the provisions of these Rules are severable. -10-