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HomeMy WebLinkAbout10 PROJECT 700116 02-21-95NO. 10 2-21-95 ..)ATE: FEBRUARY 21, 1995 Inter-Com TO: FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT SUPPLEMENTAL BUDGET APPROPRIATION FOR COST OF RELOCATION OF TENANTS AT CITY-OWNED PROPERTY (PROJECT NO. 700116) RECOMMENDATION It is recommended that, at their meeting of February 21, 1995, the City Council authOrize a supplemental budget appropriation of $200,000 from the unappropriated reserve of the Measure M Turnback funds to Project No. 700116 (El Camino Real Widening). These funds will be utilized for the Relocation Benefit Payments to the tenants of the City-owned apartments at 1921-1951 E1 Camino Real. FISCAL IMPACT Pursuant to the guidelines established by the California Health and Safety Code Sections 33411 and 33411.1, Section 7260 et seq. of the Government Code, and Title 25, Chapter 6 of the California Code of Regulations, the City is required to pay specific relocation expenses and benefits to tenants of City-owned property who are displaced dUe to a public project. The relocation costs are estimated at approximately $200,000 which will require a supplemental budget appropriation to the Capital Improvement Program Budget in that amount from the unappropriated reserve of the Measure M Turnback Funds. BACKGROUND AND DISCUSSION On June 1, 1994, the City acquired the property located at 1921 and 1951 E1 Camino Real at a Trustee's sale. The purpose of the acquisition was for the future widening of E1 Camino Real between Red Hill Avenue and Browning Avenue. The planned widening required a full property take and the ultimate demolition of the residential structures on the property. The widening project is currently under design and is tentatively scheduled for 1998-99, pending acquisition of the remaining necessary right-of-way. Currently, there are two' structures on the property, comprising ten apartment units and a laundry facility. Nine of the units are presently occupied on month-to-month rental agreements. While minimum building and property maintenance codes have been met, the City Council concurred with staff's recommendation that the relocation process be implemented immediately and that the structures subsequently be demolished due to the condition of the property and the on-going level of maintenance necessary to continue meeting building and health and safety codes. At their November 7, 1994 meeting, the City Council authorized the execution' of a agreement with Pacific Relocation Consultants for preparation and implementation of the Relocation Plan required pursuant to the California Code of Regulations. Based on the information and research conducted as part of the Relocation Plan preparation, the actual costs for the Relocation Assistance will be approximately $200,000 utilizing the methodology contained in the regulations. The Relocation Plan will be submitted to the City Council for public comment in March. The supplemental budget appropriation is necessary at this point as the tenants may begin relocating at any time and can demand payment of their benefits. CONCLUSION Tenants at the City-owned property may begin relocating at anytime. The amount of the Relocation Assistance due to the various tenants is determined based upon methodology detailed in the California Code. This Supplemental Budget appropriation will allow for the payment of assistance as required by law. Tim D. Serl~t/ Director of Public Works/ City Engineer k a~t~i e- Pitcher Administrative Assistant II TDS :KP: ccg: suppbud