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HomeMy WebLinkAboutAgenda Statement 1974/09/24 Item 11 AGENDA ITEM NO. [ 11 ] CHULA VISTA CITY COUNCIL MEETING OF: September 24, 1974 ITEM TITLE: Resolution - Authorizing transfer and expenditure of Parking Meter Funds for payment of Relocation Assistance and claims processing INITIATED BY: City Manager/Director of Finance BACKGROUND The City of San Diego, through contractual agreement with the City of ~a, is processing relocation assistance claims associated with the recent acquisition of a parcel located at 282 Del Mar Avenue. Two of the five claims are presently being forwarded to the City by the Central Relocation Office. In preparation for payment of all claims associated with this acquisition, a pre- liminary estimate of the total cost of the project has been provided by the Central Relocation Office (Exhibit 1). It should be noted that this does not include pro- cessing costs of approximately $300 per case, or $1,500 for the total project. Therefore, it is recommended that a total of $21,500 be appropriated from the unappropriated surplus of the Parking Meter Fund, $20,000 of which will be expended for replacement housing payments, while $1,500 will be expended to claims processing. The actual transfer will result in the establishment of the following two additional object accounts in the Parking Meter Fund, Activity 1500: 5201 5441 Professional Services Awards and Indemnities $ 1,500 $20,000 At its meeting of September 17, Council carried this item over one week and directed that the City Manager and City Attorney explore ways to avoid these relocation expenses. The City Attorney advises that no legal options are available; therefore, no administrative recourse can be suggested. Please review the City Attorney's memo, attached. ATTACHED: Resolution [X] Ordinance [ ] Agreement [ ] Plat [ ] See EXHIBITS R] No.1, 2, 3 Financial Statement: Authorize funds in the amount of $21,500 to be appropriated from the unappropriatedSllrplus of the Parking Meter Fund, as noted above. Commission-Board Recommendation: At its meeting of September 10, 1974, the Parking Place Commission unanimously concurred with staff's findings and recommended approval of expenditure of funds for relocation assistance. Further, they requested that a letter be directed to Assemblyman Deddeh's off~requesting review of State Relocation laws. ,. ~. Department Head Recommendation: . N.A. City Manager Recommendation: Recommend approval. -'^-"'-"'_--'~..~,., ..-,-.,.,.-.-.-.,."-"'..,.--.....-.-....------" 1fl7~ Z1 Form No. F-229 12/73 CERTIFICATE OF CITY/DIRECTOR OF ?'INANCE Certification of Un~prrop:r:iated Balance I HEREBY CERTIFY that t~2 monzy required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasu:y, or is anticipated to come into tile TreasUl"y I and is otherwise unappropriated. Amount $ .1l,500 , Fur-d ___Elrking Meter Fund Purpose JPayment~~ion assistance and claims ~~ Bid~er -lj/A .!&~~/6-: Director 0: Finance The c.ity of Chula Vif.ita 21-5100-5201 21-5100-5441 $ 1,500 $20,000 Date JjJ 2/74 'By Certificatior. of Jnencu.:rtbered Balance I HER.'S3Y CERTIFY that the indebte(1ness and obligation to b.... l' "1"'~''''1"~':; 'hv I.he con+- ..-.)....;. ,or ~f'!...~ern')n~ autt,o'.; z"'d b" tho c . ..~....__\,;.:""'" _'.. ,-...l. .....(............. I;."~J- _ ~ L~.... ;... .'. I,;, "'._ to:: ...j ..... attached :-esolution can be incurred without the violation of any of the provis:or.s of the Chart~r of tne City of Chula Vistar or the Con5titutio~ or the laws of the State of Califol~i2, that sufficient monies have be-en appro,r.-riated foT. the purpose otsaid contract, that suf:icient monies to nleet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit o[ the appropriation from which the same are to be drawn, and that said wonies now actually, in the Treasury, together with the monies anticipated to come into the Treasury I to the credit of said upp::;'opri.ation are otherwise unencu.'Itlbered. Amount Not to Exceed $ Di~ector of Financ.e mh ~'~ f C' 1 tr' t ~4e ~l~Y 0 nu Q vls.a Date Ev .. Fund Qept. /Ilet: vi ty Pl.:!'pose Bidder (\~'.r1:i.f iCP.7~J~ !~o I' ----- '-'-.- .._-_._-_.-.~ ~ -~\/ II? 1\ /' I /J r I FV AGENDA ITEM NO. [)AS. J CHULA VISTA CITY COUNCIL MEETING OF: September 17, 1974 RESOLUTION- ITEM TITLE: AUTHORIZING TRANSFER AND EXPENDITURE OF PARKING METER FUNDS FOR PAYMENT OF RELOCATION ASSISTANCE AND CLAIMS PROCESSING INITIATED BY: City Manager/Director of Finance BACKGROUND The City of San Diego, through contractuat-a~reement with the City of Chula Vista, is processing relocation assistance claims associated with the recent acquisition of a parcel located at 282 Del Mar Avenue. Two of the five claims are presently being forwarded to the City by the Central Relocation Office. In preparation for payment of all claims associated with this acquisition, a preliminary estimate of the total cost of the project has been provided by the Central Relocation Office (Attachment I). It should be noted that this does not include processing costs of approximately $300 per case, or $1,500 for the total project. Therefore, it is recommended that a total of $21,500 be appropriated from the unappropriated surplus of the Parking ~eter Fund, $20,000 of which will be expended for replacement housing payments, while $1,500 will be expended for claims processing. The actual transfer will result in the establishment of the following two additional object accounts in Parking Meter Fund, Activity 1500: 5201 Professional Services $ 1,500 5441 Awards and Indeminities - $20,000 ATTACHED: Resolution [XI Ordinance [ 1 Agreement [ 1 Plat [ 1 See EXHIBITS [~ No. I, 2 Financial Statement: Authorize funds in the amount of $21,500 to be appropriated from the unappropriated surplus of the Parking Meter Fund, as noted above. Commission-Board Recommendation: At its meeting of September 10, 1974, the Parking Place Commission unanimously concurred with staff's findings and recommended approval of expenditure of funds for relocation assistance. Further, they requested that a letter be directed to Assemblyman Deddeh's office requesting review of State Relocation laws. Department Head Recommendation: n.a. City Manager Recommendation: Recommend approval. '.~~"'-'~'--"""'---- ", "'_. .,.' .- II _ /(lrJ:<3 THE CITY OF ./If SAN DIEGO COMMUNITY DEVELOPMENT DEPARTMENT CITY ADMINISTRATION BU~LDING ~ 202 C STREET. SAN DIEGO, iflltt8tt Centralized Relocation lice 636-60,79 "', ) C I"." Ct. f. , , I, I 11. t- Ii /;, ;; I ~': vI..;' , , 4L/DjJe, r.;, oj i~ql"tf . . oj, , J. '\., 'J~~\ I ~ ,0( '? I",;) I) \.1/<1 . ..;r . '/5/0' August 27,1974- , Mr. Jack E. Henthorn Community Development Coordinator City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 Dear Mr. Henthorn: Based on our preliminary review of the five displaced persons from the Del Mar p~rking place acquisition, following is an estimate of relocation payments: Moving RHPs TOTAL $1)880.00 18~000.00 $19,880.00 If we can be of any further assistance, don't h~sitate to let us kno\'.'. Sincerely, ~~ SKIP BEREND Relocation Officer SB:1ms --.. K7~'l/3 II EXHIBIT 3 City on ChuQa CVi~ta CALIFORNIA OFFICE OF THE CITY ATTORNEY DATE: September 20, 1974 TO: The Honorable Mayor and City Council of the City of Chula Vista, John R. Thomson, City Manager FROM: George D. Lindberg, City Attorney SUBJECT: Relocation Assistance At the City Council meeting of September 17, 1974, a request was made to transfer $21,500 from the Parking Meter Revenue Fund for the payment of relocation assistance. Since that amount equaled hearly half of the purchase price already paid for the acquisition of the parcel in question for addition to our parking district, the Council was extremely concerned, if not outraged, and I believe quite properly so. However, since September 6, 1969, there has been a most significant and far reaching addition to the laws of our state concerning certain aspects of the acquisition of pro- perty by public agencies for public use. Government Code Section 7260 et seq. establishes relocation assistance regu- lations. Before going into detail relative to the central issue of relocation assistance, it should be noted that the provisions of that particular chapter of the Government Code also mater- ially affect basic methods of acquiring property for public use by establishing detailed rules of conduct for public agen- cies. Although the chapter specifically states that it in no way changes any of the well-established body of laws re- lating to eminent domain, it does establish a pattern of behavior on the part of public agencies, which obviously forces the agency to carefully consider each step of its conduct in the process of acquisition of properties. 276 Fourth Avenue, Chula Vista, CA 92010 (714) 427-3300 <i1J!?~ -...-' The Honorable Mayor and City Council September 20, 1974 Page Two For example, the chapter directs that public agencies shall take all possible steps to negotiate the purchase of pro~ perty and that they must reveal in detail the appraised value of the property as provided by the appraiser hired by the agency. The property owner must be fully informed in order to avoid, if at all possible, the costly process of a condemnation proceeding. As Council has been previously advised, there are other pro- visions of the Government Code which now require that the public agency present a fair offer to a property owner for property it is attempting to acquire and if, in fact, it is shown at the trial that the government agency has not made a fair offer, all costs including attorneys' fees and spe- cial witness fees must be borne by the agency. Added to this now is the cost to the governmental agency in providing relocation assistance. Again, the chapter is very specific in stating that it does not create any new elements of damages in a condemnation proceeding and in several instances specifies that any relocation assistance and the concomitant costs for such assistance are over and above the purchase price of the property. In effect, the public agency is required now to pay fair market value for the property plus the costs of relocation subject to certain limitations. As indicated, the ceiling is $2500 per aggrieved person and $15,000 for any decline in market value for adjacent property owners who may be affected by the public use contemplated by the agency. As the City Manager has indicated in his discussions with city managers and administrators throughout the state, they have all registered a certain dismay for this very substan- tial additional cost to the process of acquiring property for public use, but they are nevertheless forced to accept that burden or rather the general taxpayers are forced to accept it. However, it should be noted that although the chapter of the Government Code refers to the total process of acqui- stion of public property looking toward the ultimate and { 7^1/'3 .._.~-_...,.._. , I The Honorable Mayor and City Council September 20, 1974 Page Three final recourse of public agencies, i.e., condemnation, it must be recognized that a negotiated sale is no different than acquisition resulting from an award in condemnation. Whether it be by negotiation or condemnation, a property owner is entitled to receive fair market value for his property and in addition thereto, the property owner or other parties occupying the property are entitled to relocation assistance. I, of course, cannot speak to the question of the dollar amount in this or any other case since such amounts are the work pro- duct of specialists with whom the City has contracted to pro- vide such service. In conclusion, it can only be noted that public agencies are now forced to assume a substantial burden which previous to 1969 was not clearly delineated in the law. However, it should not be assumed that previous to the adoption of the Relocation Assistance Act that such costs were totally es- caped by governmental agencies. Clearly in condemnation actions prior to that time, the agencies were subject to costs over and above the basic fair market value appraisal. Leasehold interests and certain other interests were compen- sable in any condemnation proceeding and would certainly be considered in any negotiation process. The price that we paid in the instant case is predicated upon an appraisal which was limited to the issue of fair market value as de- termined by an analysis of comparable sales. Relocation assistance is in addition to such costs. GDL:lgk f7All3