HomeMy Public PortalAbout09 September 28, 2015 Budget & implementationRIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
MEETING AGENDA
TIME: 9:30 a.m.
DATE: Monday, September 28, 2015
LOCATION: BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside
COMMITTEE MEMBERS
Bob Magee, Chair / Natasha Johnson, City of Lake Elsinore
Jan Harnik, Vice Chair / Susan Marie Weber, City of Palm Desert
Brenda Knight / Jeff Fox, City of Beaumont
Ella Zanowic / Jim Hyatt, City of Calimesa
Dawn Haggerty / Jordan Ehrenkranz, City of Canyon Lake
Greg Pettis / Shelley Kaplan, City of Cathedral City
Steven Hernandez / To Be Appointed, City of Coachella
Scott Matas / Russell Betts, City of Desert Hot Springs
Linda Krupa / Paul Raver, City of Hemet
Dana Reed / Douglas Hanson, City of Indian Wells
Rick Gibbs / Jonathan Ingram, City of Murrieta
Rusty Bailey / Andy Melendrez, City of Riverside
Michael Naggar / Michael McCracken, City of Temecula
John F. Tavaglione, County of Riverside, District II
Chuck Washington, County of Riverside, District III
STAFF
Anne Mayer, Executive Director
Theresia Trevino, Chief Financial Officer
AREAS OF RESPONSIBILITY
Annual Budget Development and Oversight
Competitive Federal and State Grant Programs
Countywide Communications and Outreach Programs
Countywide Strategic Plan
Legislation
Public Communications and Outreach Programs
Short Range Transit Plans
Comments are welcomed by the Committee. If you wish to provide comments to the Committee, please
complete and submit a Speaker Card to the Clerk of the Board.
COMM-BI-00028
Tara Byerly
From:
Sent:
To:
Cc:
Subject:
Importance:
Tara Byerly
Tuesday, September 22, 2015 2:56 PM
Tara Byerly
Jennifer Harmon
RCTC: Budget and Implementation Committee Agenda -09.28.2015
High
Good afternoon Budget and Implementation Committee Members:
Attached below is the link to the Budget and Implementation Committee Agenda for the meeting scheduled @ 9:30 a.m.
on Monday, September 28.
http://www.rctc.org/uploads/media items/budget-and-implementation-committe-september-28-2015.original.pdf
Please let me know if you have any questions. Thank you.
Respectfully,
Cfara S. <Byer[y
Deputy Clerk of the Board
Riverside County Transportation Commission
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
(951) 787-7141
1
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
www.rctc.org
AGENDA*
*Actions may be taken on any item listed on the agenda
9:30 a.m.
Monday, September 28, 2015
BOARD ROOM
County Administrative Center
4080 Lemon Street, First Floor
Riverside, California
In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed
72 hours prior to the meeting, which are public records relating to open session agenda items, will be
available for inspection by members of the public prior to the meeting at the Commission office,
4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission’s website, www.rctc.org.
In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal
Transit Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance
is needed to participate in a Commission meeting, including accessibility and translation services.
Assistance is provided free of charge. Notification of at least 48 hours prior to the meeting time will assist
staff in assuring reasonable arrangements can be made to provide assistance at the meeting.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ATTENDANCE / ROLL CALL
4. PUBLIC COMMENTS – Each individual speaker is limited to speak three (3) continuous
minutes or less. The Committee may, either at the direction of the Chair or by majority
vote of the Committee, waive this three minute time limitation. Depending on the number
of items on the Agenda and the number of speakers, the Chair may, at his/her discretion,
reduce the time of each speaker to two (2) continuous minutes. Also, the Committee may
terminate public comments if such comments become repetitious. In addition, the
maximum time for public comment for any individual item or topic is thirty (30) minutes.
Speakers may not yield their time to others without the consent of the Chair. Any written
documents to be distributed or presented to the Committee shall be submitted to the Clerk
of the Board. This policy applies to Public Comments and comments on Agenda Items.
Under the Brown Act, the Board should not take action on or discuss matters raised during
public comment portion of the agenda which are not listed on the agenda. Board members
may refer such matters to staff for factual information or to be placed on the subsequent
agenda for consideration.
Budget and Implementation Committee
September 28, 2015
Page 2
5. APPROVAL OF MINUTES – AUGUST 24, 2015
6. ADDITIONS/REVISIONS (The Committee may add an item to the Agenda after making a
finding that there is a need to take immediate action on the item and that the item came
to the attention of the Committee subsequent to the posting of the agenda. An action
adding an item to the agenda requires 2/3 vote of the Committee. If there are less than
2/3 of the Committee members present, adding an item to the agenda requires a
unanimous vote. Added items will be placed for discussion at the end of the agenda.)
7. 2016 STATE TRANSPORTATION IMPROVEMENT PROGRAM – INTERSTATE 15/FRENCH
VALLEY PARKWAY INTERCHANGE AND INTERSTATE 15/RAILROAD CANYON
INTERCHANGE PROGRAMMING RECOMMENDATIONS
Page 1
Overview
This item is for the Committee to:
1) Approve programming the Interstate 15/French Valley Parkway interchange
(Phase 2) in the 2016 State Transportation Improvement Program (STIP) as agreed
upon by the city of Temecula (Temecula), Caltrans, and the Federal Highway
Administration;
2) Approve reprogramming STIP funds from the I-215 South connector gap closure
project to the I-15/Railroad Canyon interchange project including any additional
STIP funds that may become available;
3) Authorize the Executive Director to determine final programming amounts for the
I-15/French Valley Parkway interchange (Phase 2) and I-15/Railroad Canyon
interchange projects in an amount not to exceed $50,645,000; and
4) Forward to the Commission for final action.
8. TRADE CORRIDOR IMPROVEMENT FUND UPDATE AND AVENUE 66
Page 3
Overview
This item is for the Committee to:
1) Allocate up to $15 million in Congestion Management Air Quality (CMAQ) funds to
the County of Riverside (County) for the Avenue 66 at-grade railroad crossing;
2) Direct staff to work with the Coachella Valley Association of Governments (CVAG),
the County, Caltrans, and the California Transportation Commission (CTC) to secure
the balance of funding required;
3) Submit Trade Corridor Improvement Fund (TCIF) project application and supporting
documentation to the CTC requesting allocation of $5,708,444 in TCIF funding for
Avenue 66; and
4) Forward to the Commission for final action.
Budget and Implementation Committee
September 28, 2015
Page 3
9. RIGHT OF WAY POLICIES AND PROCEDURES MANUAL
Page 6
Overview
This item is for the Committee to:
1) Approve the revised RCTC Right of Way Policies and Procedures Manual for the
acquisition and sale of real property, relocation of displaced individuals and
businesses, utility relocations, appraisal of real property, project certification,
project closeout, and property management, pursuant to legal counsel review as to
conformance to federal and state law;
2) Adopt Resolution No. 15-020, “Resolution of the Riverside County Transportation
Commission Amending the RCTC Right of Way Policies and Procedures Manual”;
3) Authorize the Executive Director to approve the final RCTC Right of Way Policies and
Procedures Manual; and
4) Forward to the Commission for final action.
10. SB 821 BICYCLE AND PEDESTRIAN FACILITIES PROGRAM REALLOCATION FOR THE CITY OF
JURUPA VALLEY
Page 10
Overview
This item is for the Committee to:
1) Approve the reallocation of Fiscal Year 2013/14 returned project funds in the
amount of $130,000 to the city of Jurupa Valley’s (Jurupa Valley) Golden West
Avenue Sidewalk Infill project, previously funded with $70,000 in the FY 2013/14
SB 821 Bicycle and Pedestrian Facilities program recommended funding list;
2) Receive and file an update on the status of the $556,508 remaining from the
FY 2015/16 call for projects; and
3) Forward to the Commission for final action.
11. FEDERAL AND STATE LEGISLATION
Page 18
Overview
This item is for the Committee to:
1) Receive and file an update on federal and state legislation; and
2) Forward to the Commission for final action.
Budget and Implementation Committee
September 28, 2015
Page 4
12. COMMISSIONERS / STAFF REPORT
Overview
This item provides the opportunity for the Commissioners and staff to report on attended
and upcoming meeting/conferences and issues related to Commission activities.
13. ADJOURNMENT AND THE NEXT MEETING
The next Budget and Implementation Committee meeting is scheduled to be held at
9:30 a.m., Monday, October 26, 2015, Board Chambers, First Floor, County Administrative
Center, 4080 Lemon Street, Riverside.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
ROLL CALL
SEPTEMBER 28, 2015
County of Riverside, District II
County of Riverside, District Ill
City of Beaumont
City of Calimesa
City of Canyon Lake
City of Cathedral City
City of Coachella
City of Desert Hot Springs
City of Hemet
City of Indian Wells
City of Lake Elsinore
City of Murrieta
City of Palm Desert
City of Riverside
City of Temecula
Absent
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE SIGN-IN SHEET
SEPTEMBER 28, 2015
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AGENDA ITEM 5
MINUTES
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
Monday, August 24, 2015
MINUTES
1. CALL TO ORDER
The meeting of the Budget and Implementation Committee was called to order by
Chair Bob Magee at 9:31 a.m., in the Board Room at the County of Riverside
Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501.
2. PLEDGE OF ALLEGIANCE
At this time, Commissioner Rick Gibbs led the Budget and Implementation Committee in
a flag salute.
3. ROLL CALL
Members/Alternates Present Members Absent
Rusty Bailey Dawn Haggerty
Rick Gibbs John Tavaglione
Douglas Hanson
Jan Harnik
Steven Hernandez
Brenda Knight
Linda Krupa*
Bob Magee
Scott Matas
Michael Naggar
Greg Pettis
Chuck Washington
Ella Zanowic
*Arrived after the meeting was called to order
4. PUBLIC COMMENTS
There were no requests to speak from the public.
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 2
5. APPROVAL OF MINUTES – JUNE 22, 2015
M/S/C (Naggar/Zanowic) to approve the minutes of June 22, 2015 meeting as
submitted.
Abstain: Bailey and Hernandez
6. ADDITIONS / REVISIONS
There were no additions or revisions to the agenda.
7. CONSENT CALENDAR - All matters on the Consent Calendar will be approved in a single
motion unless a Commissioner(s) requests separate action on specific item(s). Items
pulled from the Consent Calendar will be placed for discussion at the end of the agenda.
M/S/C (Matas/Hanson) to approve the following Consent Calendar item(s):
7A. QUARTERLY FINANCIAL STATEMENTS
1) Receive and file the Quarterly Financial Statements for the year ended
June 30, 2015; and
2) Forward to the Commission for final action.
7B. SINGLE SIGNATURE AUTHORITY REPORT
1) Receive and file the Single Signature Authority report for the fourth
quarter ended June 30, 2015; and
2) Forward to the Commission for final action.
7C. QUARTERLY SALES TAX ANALYSIS
1) Receive and file the sales tax analysis for Quarter 1 2015 (1Q 2015); and
2) Forward to the Commission for final action.
7D. QUARTERLY INVESTMENT REPORT
1) Receive and file the Quarterly Investment Report for the quarter ended
June 30, 2015; and
2) Forward to the Commission for final action.
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 3
8. CALPERS DELEGATION OF AUTHORITY TO REQUEST DISBURSEMENTS
Michele Cisneros, Deputy Director of Finance, provided an overview of the revisions to the
CalPERS Delegation of Authority form due to staff title changes from the classification
study.
M/S/C (Pettis/Zanowic) to:
1) Designate the Chief Financial Officer, Deputy Executive Director, and
Deputy Director of Finance to request disbursements from the CalPERS
pre-funding plan;
2) Authorize the Chair to execute the Delegation of Authority to Request
Disbursements; and
3) Forward to the Commission for final action.
9. REVISIONS TO PROCUREMENT POLICY MANUAL
Matt Wallace, Procurement Manager, presented the revisions to the Procurement
Policy Manual (PPM), highlighting the following:
• PPM evolution;
• 2015 PPM revisions – General, specific procurement procedures, laws and
regulations, and other changes; and
• Next steps.
At this time, Commissioner Linda Krupa joined the meeting.
Commissioner Gibbs expressed appreciation to Mr. Wallace for doing a service to all of
the Commissioner’s councils from various cities. He then asked what defines a
responsible bidder.
Matt Wallace explained the process for verifying if the contractor is a responsible,
responsive bidder.
In response to Commissioner Gibbs’ clarification when the Commission defines
responsible, it does not necessarily mean the Commission actually has a history with the
particular contractor, Matt Wallace concurred and stated there have been a number of
first time contractors in the last five years.
Commissioner Gibbs suggested Mr. Wallace is defining responsible to mean if there is an
abnormal amount of contract change orders and there is a bid from a contractor that
has not worked for the Commission, staff evaluates it and it is factored in when
conducting the source selection.
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 4
Matthew Wallace concurred and explained that issue would come up through the
reference checks the proposed contractor submitted.
In response to Commissioner Gibbs’ question regarding cost realism, Matthew Wallace
explained costs reimbursable and how staff procures or negotiates.
Commissioner Gibbs suggested under that particular section, staff can adjust what is
considered to be an unrealistically low bid.
Matt Wallace concurred and stated those agreements are based on qualifications, which
staff will evaluate and negotiate with the highest ranked firm. Mr. Wallace discussed
the negotiations process and stated if a compromise cannot be reached, then staff
moves to the next qualified proposer and follows the same process.
Commissioner Gibbs expressed appreciation and reiterated the Procurement
Department has done a service for every member on the Commission that represents a
city or council.
In response to Commissioner Jan Harnik’s request for clarification on the authority
amount, Matt Wallace replied in order to be consistent with the Office of Management
and Budgets Uniform guidance’s authority granted to the Executive Director, staff is
proposing to increase it by $50,000, for a total amount of $150,000, for services only.
Anne Mayer referred to the question on cost realism and explained when a sealed low
bid is received from a contractor, the procurement team analyzes all of the bid items
and the cost proposals to look for outline unit prices on bids. She discussed the
differences in dealing with the qualifications for professional services where costs are
negotiated versus a low bid situation where staff does not have the same negotiation
capabilities.
M/S/C (Gibbs/Harnik) to:
1) Approve the revised Riverside County Transportation Commission
Procurement Policy Manual (PPM) for the procurement and contracting
activities undertaken by the Commission, pursuant to legal counsel
review as to conformance to state and federal law;
2) Adopt Resolution No. 15-017, “Resolution of the Riverside County
Transportation Commission Regarding the Revised Procurement Policy
Manual”; and
3) Forward to the Commission for final action.
10. 2016 STATE TRANSPORTATION IMPROVEMENT PROGRAM UPDATE
Shirley Medina, Planning and Programming Director, presented the 2016 State
Transportation Improvement Program (STIP) update, highlighting the following areas:
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 5
• STIP Fund Estimate – California Transportation Commission (CTC) adopted 2016
STIP Fund Estimate and guidelines, $46 million available new programming
capacity in FY 2020/21, and reprogramming exercise;
• 2016 STIP reprogramming recommendations for delaying projects per CTC
direction; and
• 2016 STIP submittal timeline.
In response to Commissioner Hernandez’s question regarding how the STIP projects will
facilitate the implementation of Sustainable Communities Strategies (SCS) with respect
to the Commission projects and the funding sources, Shirley Medina replied the STIP
guidelines require staff to demonstrate how projects are consistent with the Regional
Transportation Plan (RTP) and the SCS component.
Anne Mayer explained the STIP is a capacity program intended for regional arterial
highway, freeway, and transit improvements. Ms. Mayer stated staff’s prospective is
any project recommended for inclusion in the STIP needs to be consistent with the
RTP/SCS. Ms. Mayer explained there is an effort underway at the state level to change
the use of the STIP funds and discussed the potential changes. She expressed this will
be a very significant issue as there is a desire to shut down all capacity improvement
construction in the entire state, which will require the law to be changed.
Commissioner Hernandez asked from an advocacy prospective, if the Commissioners
could have a policy or a framework recommendation to help advocate with Legislative
leaders.
Anne Mayer replied yes and stated the current position is STIP funds should be spent
according to the law and staff will provide speaking points.
M/S/C (Harnik/Zanowic) to:
1) Approve reprogramming State Transportation Improvement Program
(STIP) projects as reflected in Table A ; and
2) Forward to the Commission for final action.
11. CONGESTION MANAGEMENT PROGRAM MONITORING
Shirley Medina provided an overview of the Congestion Management Program
monitoring per federal requirements.
M/S/C (Zanowic/Washington) to:
1) Approve Agreement No. 10-65-114-04, Amendment No. 4 to Agreement
No. 10-65-114-00, with VRPA Technologies for continued monitoring of
the Congestion Management Program (CMP) system of highways and
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 6
roads per federal requirements for an additional amount of $28,167,
and a total amount not to exceed $286,960;
2) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to execute the agreement on behalf of the Commission; and
3) Forward to the Commission for final action.
12. FISCAL YEAR 2015/16 ANNUAL LOCAL TRANSPORTATION FUND PLANNING
ALLOCATIONS TO WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS AND COACHELLA
VALLEY ASSOCIATION OF GOVERNMENTS
Grace Alvarez, Planning and Programming Manager, presented the Fiscal Year 2015/16
annual Local Transportation Fund planning allocations to Western Riverside Council of
Governments and Coachella Valley Association of Governments.
M/S/C (Harnik/Zanowic) to:
1) Approve an allocation of Local Transportation Fund (LTF) planning funds
in the amount of $684,750 for Western Riverside Council of
Governments (WRCOG) and $373,500 for the Coachella Valley
Association of Governments (CVAG) for efforts identified in each
agency’s FY 2015/16 LTF Program Objectives/Work Plan (Work Plan)
that support transportation planning programs and functions consistent
with regional and subregional plans, programs and requirements; and
2) Forward to the Commission for final action.
13. AUTHORIZATION TO EXECUTE THE FUNDS TRANSFER AGREEMENT AND APPROVAL OF
AMENDMENT FOR FORECASTING SERVICES WITH HDR, INC. AND BRIDGE FUNDING
FOR THE COACHELLA VALLEY – SAN GORGONIO PASS RAIL CORRIDOR SERVICE
DEVELOPMENT PLAN
Robert Yates, Multimodal Services Director, presented the request for authorization to
execute the fund transfer agreement and approval of amendment for forecasting
services and bridge funding for the Coachella Valley – San Gorgonio Pass Rail Corridor
service development plan.
M/S/C (Matas/Pettis) to:
1) Authorize the Executive Director to execute the Caltrans Division of Rail
(Caltrans) fund transfer agreement;
2) Approve Agreement No. 14-25-072-01, Amendment No. 1 to Agreement
No. 14-25-072-00, with HDR, Inc. (HDR) for rail forecasting services, for
an additional amount of $69,450, and a total amount not to exceed
$1,917,095, with bridge funding from Coachella Valley Rail fund
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 7
reserves in advance of Commission receipt of Federal Railroad
Administration (FRA) grant funds; and
3) Forward to the Commission for final action.
14. FEDERAL AND STATE LEGISLATION UPDATE
Aaron Hake, Government Relations Manager, provided an update on state and federal
legislative activities.
M/S/C (Zanowic/Harnik) to:
1) Receive and file an update on federal and state legislation; and
2) Forward to the Commission for final action.
15. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT
15A. Commissioner Gibbs asked for staff’s expectations for the RCTC Transportation
Summits.
Anne Mayer replied she hopes people attend and participate by sharing their
thoughts and priorities. She is hopeful the outreach will give staff information to
be shared with the Commissioners as decisions are being made about priorities.
Her expectation is the RCTC team will be ready and able to take whatever public
comments that come staff’s way and to be as prepared as possible to have a
conversation with the public at these summits.
Commissioner Gibbs asked if it would be appreciated if the Commissioners work
with their respective areas to promote interest.
Anne Mayer replied yes and stated the RCTC Transportation Summit notices
were published in a wide variety of locations so there has been a significant
amount of outreach to the public. Ms. Mayer then provided the summit dates.
15B. Commissioner Harnik briefed the Committee on a meeting with Assemblyman
Jim Frazier and the discussion about the need for transportation funding and the
gas tax deficit. She suggested Commissioners pay attention to areas in which
they have influence.
15C. Anne Mayer announced the Mobility 21 Summit is scheduled for August 28 in
Anaheim.
RCTC Budget and Implementation Committee Minutes
August 24, 2015
Page 8
16. ADJOURNMENT AND NEXT MEETING
There being no further business for consideration by the Budget and Implementation
Committee, the meeting was adjourned at 10:16 a.m. The next meeting of the Budget
and Implementation Committee is scheduled for September 28, 2015, at 9:30 a.m.
Respectfully submitted,
Jennifer Harmon
Clerk of the Board
AGENDA ITEM 7
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: September 28, 2015
TO: Budget and Implementation Committee
FROM: Shirley Medina, Planning and Programming Director
THROUGH: John Standiford, Deputy Executive Director
SUBJECT:
2016 State Transportation Improvement Program – Interstate 15/French
Valley Parkway Interchange and Interstate 15/Railroad Canyon Interchange
Programming Recommendations
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Approve programming the Interstate 15/French Valley Parkway interchange (Phase 2) in
the 2016 State Transportation Improvement Program (STIP) as agreed upon by the city
of Temecula (Temecula), Caltrans, and the Federal Highway Administration;
2) Approve reprogramming STIP funds from the I-215 South connector gap closure project
to the I-15/Railroad Canyon interchange project including any additional STIP funds that
may become available;
3) Authorize the Executive Director to determine final programming amounts for the
I-15/French Valley Parkway interchange (Phase 2) and I-15/Railroad Canyon interchange
projects in an amount not to exceed $50,645,000; and
4) Forward to the Commission for final action.
BACKGROUND INFORMATION:
At the September 9, 2015 Commission meeting, staff indicated a phase and funding plan for the
I-15/French Valley Parkway interchange was under development. Due to the size and costs
associated with the ultimate design of the project, the need for phasing the project to fit within
the amount of available funds was required. Temecula, Caltrans, and Federal Highway
Administration are in agreement on a phase that can be delivered within the amount of
available STIP funds. The phasing that will provide the most traffic relief and benefit to the area
is the construction of a northbound collector/distributor road, improvements to the two on
ramps at Winchester Road, and northbound 15/215 collector/distributor connectors. The total
cost for Phase 2 improvements is between $50 and $54 million.
Temecula will perform additional preliminary engineering work for Phase 2 in the amount of
approximately $2 million, and the right of way acquisition cost is $3.9 million. Preliminary
engineering and right of way will be funded with non-STIP funding sources. Therefore, the STIP
Agenda Item 7
1
funds will be programmed for construction, which is estimated at $37.6 or $40.8 million. The
amount currently programmed in the STIP for construction is $41.5 million. Temecula and
Caltrans will be providing final costs.
Currently, the I-215 South connector gap closure project is programmed in the STIP for
$8,965,000. Given the phasing of the I-15/French Valley interchange project improvements,
the I-215 South connector gap closure project will need to be delayed until the ultimate
I-15/French Valley Parkway interchange is constructed. Therefore, staff is recommending these
funds be reprogrammed to fund right of way and/or construction of the I-15/Railroad Canyon
interchange project, including any additional STIP funding that may become available. The
project will be ready for construction in Fiscal Year 2018/19 and the construction cost is
estimated at $30 million. Other fund sources such as Transportation Uniform Mitigation Fee
(TUMF) Regional Arterial program, Measure A Regional Arterial, and/or federal funds are
anticipated to complete the project’s funding. The I-15/Railroad Canyon interchange project is
included in the Commission’s TUMF Regional Arterial program that was approved by the
Commission in September 2004.
As previously reported, the California Transportation Commission (CTC) requested all projects
be reprogrammed or delayed due to the lack of new programming capacity and reduced
funding levels in the 2016 STIP. Therefore, staff recommends programming the I-15/Railroad
Canyon interchange project in FY 2019/20 and will work with the CTC on the possibility of
advancing the allocation or processing an AB 3090 request, which would allow the project to
begin the phase with local funds in advance of the allocation program year.
Upon approval of this item, staff will provide the proposed 2016 STIP projects to the Southern
California Association of Governments (SCAG) for performance measures reporting as required
by the CTC STIP Guidelines. In addition, staff will work with SCAG on preparing an amendment
to the Federal Transportation improvement Program to reflect the CTC’s 2016 STIP adoption.
This item has no direct financial impact to the Commission.
Agenda Item 7
2
AGENDA ITEM 8
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: September 28, 2015
TO: Budget and Implementation Committee
FROM: Tanya Love, Goods Movement Manager
THROUGH: John Standiford, Deputy Executive Director
SUBJECT: Trade Corridor Improvement Fund Update and Avenue 66
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Allocate up to $15 million in Congestion Management Air Quality (CMAQ) funds to the
County of Riverside (County) for the Avenue 66 at-grade railroad crossing;
2) Direct staff to work with the Coachella Valley Association of Governments (CVAG), the
County, Caltrans, and the California Transportation Commission (CTC) to secure the
balance of funding required;
3) Submit Trade Corridor Improvement Fund (TCIF) project application and supporting
documentation to the CTC requesting allocation of $5,708,444 in TCIF funding for
Avenue 66; and
4) Forward to the Commission for final action.
BACKGROUND INFORMATION:
TCIF Program/Project Status Update
In 2006, voters passed Proposition 1B, which provided $2 billion in funding for goods
movement projects. In 2008, $162.7 million of the $2 billion was allocated for 11 at-grade
railroad crossings and one interchange improvement project located in Riverside County under
the TCIF program. Since that time, much progress has been made in constructing the 12
projects:
Location Project Status/Anticipated Completion Date
Banning Sunset Avenue Under construction - February 2016
Coachella Avenue 52 Under construction – October 2015
Corona Auto Center Drive Completed
County Avenue 56/Airport Boulevard Under construction – March 2016
Magnolia Avenue (BNSF) Under construction – January 2016
I-215/Van Buren Interchange Completed
Jurupa Valley Clay Street Under construction – March 2016
Riverside Columbia Avenue Completed
Iowa Avenue Completed
Magnolia Avenue (UP) Completed
Riverside Avenue Completed
Streeter Avenue Completed
Agenda Item 8
3
Total, these 12 TCIF projects cost an estimated $461 million and represent a significant
investment in goods movement. Currently, $5,708,444 remains of the $162.7 million TCIF
allocation. In partnership with CVAG and the County, staff is requesting approval to allocate
the remaining TCIF funds and nominate Avenue 66 as a TCIF project.
Avenue 66
When the TCIF program was developed, the Avenue 66 at-grade crossing was one of the
original projects approved for funding. At CVAG’s request, it was subsequently deleted and
replaced with the Avenue 52 at-grade crossing due to funding constraints. Avenue 66 remains
an important project, and for this reason, the County continued to work on getting the project
shovel-ready. In order to qualify for the TCIF program, the project must maintain a very tight
schedule in order to meet the CTC’s programmatic guidelines. All funds for the project must be
allocated by June 2016, and construction is required to start no later than
December 31, 2016. Currently, County staff is in the process of finalizing a National
Environmental Policy Act categorical exclusion on Avenue 66, which is expected to be
completed by the end of this month and will begin right of way acquisition immediately
thereafter.
Avenue 66 Project Location
The existing at grade crossing of the Union Pacific Railroad on Avenue 66 regularly requires that
traffic stop for passing trains, including a substantial number of agricultural freight trucks.
Currently, 71 freight trains pass daily through the County; that number is projected to increase
to 107 by 2030.
Agenda Item 8
4
Funding Avenue 66
The estimated project cost for Avenue 66 is a little over $39 million; currently $4 million in
funding is secured. Staff is requesting up to $15 million in CMAQ funding be allocated in
addition to the allocation of the TCIF funds. Staff will continue working with project partners to
fund the balance using a combination of local, state and federal funds:
Estimated Project Cost: $39,080,000
Less secured funding: _ 4,000,000
Balance needed: 35,080,000
Less CMAQ funding: 15,000,000
Less anticipated TCIF funding 5,708,444
Balance (local, state, federal funds) $14,371,556
These funds do not pass through the Commission; therefore, there is no direct financial impact.
Agenda Item 8
5
AGENDA ITEM 9
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: September 28, 2015
TO: Budget and Implementation Committee
FROM: Mark Lancaster, Right of Way Manager
THROUGH: Marlin Feenstra, Project Delivery Director
SUBJECT: Right of Way Policies and Procedures Manual
STAFF RECOMMENDATION:
This item is for the Committee to:
1)Approve the revised RCTC Right of Way Policies and Procedures Manual for the
acquisition and sale of real property, relocation of displaced individuals and businesses,
utility relocations, appraisal of real property, project certification, project closeout, and
property management, pursuant to legal counsel review as to conformance to federal
and state law;
2)Adopt Resolution No. 15-020, “Resolution of the Riverside County Transportation
Commission Amending the RCTC Right of Way Policies and Procedures Manual”;
3)Authorize the Executive Director to approve the final RCTC Right of Way Policies and
Procedures Manual; and
4)Forward to the Commission for final action.
BACKGROUND INFORMATION:
Due to the Commission’s engaged role in project delivery, the Federal Highway Administration
(FHWA) and the Federal Transit Administration (FTA) require the Commission to adopt a
comprehensive list of policies and procedures for right of way acquisition. The original RCTC
Right of Way Policies and Procedures Manual was adopted by the Commission on July 11, 2007,
and subsequent updates to specific sections were adopted at later dates.
Staff completed a review of the existing manual and revised the RCTC Right of Way Policies and
Procedures Manual to reflect current operational processes and the existing roles and
responsibilities of staff members. Updates have been made to conform to current federal and
state laws as well as the Caltrans Right of Way Manual. In addition to industry best practices,
an FTA corrective action recommendation from the recent FTA Triennial Audit pertaining to the
disposition of FTA funded real property has been incorporated in this revision.
The following California Codes that apply to California eminent domain law have been updated
as necessary:
Agenda Item 9
6
" C a l i f o r n i a C o d e o f C i v i l P r o c e d u r e S e c t i o n 1 2 4 5 . 0 1 0 - 1 2 4 5 . 2 7 0
" C a l i f o r n i a G o v e r n m e n t C o d e S e c t i o n s 7 2 6 0 - 7 2 7 7
T h e f o l l o w i n g f e d e r a l r e g u l a t i o n s a n d p o l i c i e s , w h i c h a p p l y t o t h e r i g h t o f w a y p r o g r a m h a v e
b e e n u p d a t e d a s n e c e s s a r y :
" U n i f o r m R e l o c a t i o n A s s i s t a n c e a n d R e a l P r o p e r t y A c q u i s i t i o n P o l i c i e s A c t o f 1 9 7 0 , a s
a m e n d e d ( 4 2 U . S . C . 4 6 0 1 e t s e q . ) 4 9 P a r t 2 4 , a s f u r t h e r a m e n d e d b y t h e S u r f a c e
T r a n s p o r t a t i o n a n d U n i f o r m R e l o c a t i o n A s s i s t a n c e A c t o f 1 9 8 7 , T i t l e I V o f P u b . L . 1 0 0 - 1 7 ;
a n d t h e F i n a l R u l e d a t e d J a n u a r y 4 , 2 0 0 5
" 2 3 C F R P a r t s 1 3 0 , 4 8 0 , 6 2 0 , 6 3 0 , 6 3 5 , 6 4 5 , 7 1 0 , 7 1 2 a n d 7 1 3 T h e F H W A , R i g h t o f W a y
P r o g r a m A d m i n i s t r a t i o n
" F H W A , O f f i c e o f R e a l E s t a t e , P r o j e c t D e v e l o p m e n t G u i d e
" F T A C i r c u l a r 5 0 1 0 . 1 D d a t e d N o v e m b e r 1 , 2 0 0 8 , a s a m e n d e d , t i t l e d F T A G r a n t
M a n a g e m e n t R e q u i r e m e n t s
" S e c t i o n 1 5 2 1 o f t h e M o v i n g A h e a d f o r P r o g r e s s i n t h e 2 1 s t C e n t u r y A c t ( M A P - 2 1 )
A s p a r t o f t h e a m e n d m e n t , s t a f f c o m p i l e d C h a p t e r 1 2 , a n e w s e c t i o n f o r p r o j e c t c l o s e o u t t o
f o r m a l i z e t h e s t e p s n e c e s s a r y t o c o n c l u d e a p r o j e c t .
T h e r e v i s e d R C T C R i g h t o f W a y P o l i c i e s a n d P r o c e d u r e s M a n u a l p r o v i d e s t h e C o m m i s s i o n w i t h a
f o r m a l s e t o f p o l i c i e s a n d p r o c e d u r e s t h a t w i l l a s s i s t i n a l l a s p e c t s o f r i g h t o f w a y w h i l e
c o m p l y i n g w i t h f e d e r a l a n d s t a t e r e g u l a t i o n s . T h e d r a f t r e v i s e d m a n u a l i s u n d e r f i n a l r e v i e w b y
t h e C o m m i s s i o n s l e g a l c o u n s e l . A c c o r d i n g l y , s t a f f r e c o m m e n d s t h e C o m m i s s i o n a u t h o r i z e t h e
E x e c u t i v e D i r e c t o r t o a p p r o v e t h e f i n a l R C T C R i g h t o f W a y P o l i c i e s a n d P r o c e d u r e s M a n u a l .
T h e f o l l o w i n g c h a p t e r s a r e p a r t o f t h e u p d a t e d m a n u a l :
C h a p t e r 1 : G e n e r a l I n f o r m a t i o n
C h a p t e r 2 : R i g h t o f W a y M a n a g e m e n t P l a n
C h a p t e r 3 : T i t l e R e p o r t , E s c r o w S e r v i c e s a n d D e e d s
C h a p t e r 4 : S u r v e y s a n d L e g a l D e s c r i p t i o n s
C h a p t e r 5 : R e a l P r o p e r t y A p p r a i s a l B a s i c O p e r a t i n g P o l i c i e s
C h a p t e r 6 : A c q u i s i t i o n , N e g o t i a t i o n a n d E m i n e n t D o m a i n
C h a p t e r 7 : R e l o c a t i o n A s s i s t a n c e
C h a p t e r 8 : P r o p e r t y M a n a g e m e n t
C h a p t e r 9 : D e m o l i t i o n , C l e a r a n c e a n d R i g h t o f W a y C e r t i f i c a t i o n
C h a p t e r 1 0 : E n v i r o n m e n t a l I n s p e c t i o n , R e m e d i a t i o n , a n d M i t i g a t i o n
C h a p t e r 1 1 : U t i l i t y R e l o c a t i o n s
C h a p t e r 1 2 : P r o j e c t C l o s e O u t
A g e n d a I t e m 9
7
It should be noted when the Commission acquires right of way incorporated into the state
highway system, Commission staff will also follow Caltrans Right of Way Manual Policies and
Procedures.
Attachments:
1)RCTC Right of Way Policies and Procedures Manual (Draft) – Posted on Commission
Website
2)Resolution No. 15-020
Agenda Item 9
8
RCTC
RIGHT OF WAY
POLICIES AND
PROCEDURES
ATTACHMENT 1
TABLE OF CONTENTS
1.00.00.00 GENERAL INFORMATION ......................................................................................... 1
1.01.00.00 INTRODUCTION ....................................................................................................... 1
1.01.01.00 Reason ..................................................................................................................... 1
1.01.02.00 Scope ....................................................................................................................... 1
1.01.03.00 Purpose .................................................................................................................... 1
1.01.04.00 Federal Regulations ................................................................................................. 1
1.01.05.00 State Regulations ..................................................................................................... 1
1.01.06.00 FHWA, FTA and State - The Commission Relationship ............................................ 1
1.01.07.00 Communications and Letter Writing ....................................................................... 2
1.01.08.00 Public Relations ....................................................................................................... 2
1.02.00.00 SUBDIVISION OF MANUAL ...................................................................................... 2
1.02.01.00 Explanation of Table of Contents ............................................................................ 2
1.02.02.00 Issue and Revision Dates ......................................................................................... 2
1.02.03.00 Retention of Revised Material................................................................................. 2
1.03.00.00 DISCRIMINATORY PRACTICES .................................................................................. 2
1.03.01.00 General Policy Concerning Discrimination .............................................................. 2
1.03.02.00 Employment Practices ............................................................................................. 3
1.03.03.00 Contract Procedures ................................................................................................ 3
1.03.04.00 Right of Way Acquisition ......................................................................................... 3
1.03.05.00 Property Management ............................................................................................ 4
1.03.06.00 Relocation Assistance .............................................................................................. 4
1.03.07.00 Records and Reports ............................................................................................... 4
2.00.00.00 ROW MANAGEMENT PLAN ..................................................................................... 5
2.01.00.00 INTRODUCTION ....................................................................................................... 5
2.01.01.00 Purpose .................................................................................................................... 5
2.01.02.00 Scope ....................................................................................................................... 5
2.01.03.00 Title VI, Civil Rights Act ............................................................................................ 5
2.02.00.00 RIGHT OF WAY ACQUISITION .................................................................................. 5
2.02.01.00 Authority of the Commission to Acquire ................................................................ 5
2.02.02.00 State Laws ................................................................................................................ 5
2.02.03.00 Federal Laws and Regulations ................................................................................. 5
2.02.04.00 Overview .................................................................................................................. 6
2.02.05.00 Interest to be Acquired ........................................................................................... 6
TABLE OF CONTENTS
2.02.06.00 Title Insurance ......................................................................................................... 7
2.02.07.00 Identification of Right of Way ................................................................................. 7
2.02.08.00 Scheduling ............................................................................................................... 7
2.03.00.00 APPRAISAL ............................................................................................................... 8
2.03.01.00 Purpose .................................................................................................................... 8
2.03.02.00 Basic Appraisal Process ........................................................................................... 8
2.04.00.00 ENVIRONMENTAL INSPECTION ............................................................................... 8
2.04.01.00 Purpose .................................................................................................................... 8
2.04.02.00 Procedure ................................................................................................................ 9
2.04.03.00 Documentation ...................................................................................................... 10
2.05.00.00 NEGOTIATIONS ...................................................................................................... 10
2.05.01.00 Acquisition Agents ................................................................................................. 10
2.05.02.00 Procedure .............................................................................................................. 10
2.06.00.00 RELOCATION .......................................................................................................... 12
2.06.01.00 Relocation Agents .................................................................................................. 12
2.06.02.00 Relocation Program ............................................................................................... 12
2.06.03.00 Appeal Process ...................................................................................................... 12
2.07.00.00 RIGHT OF WAY PROPERTY MANAGEMENT ........................................................... 12
2.07.01.00 Scope ....................................................................................................................... 12
2.07.02.00 Right of Way Inventory .......................................................................................... 12
2.07.03.00 Aging and Receivables Report ............................................................................... 13
2.08.00.00 UTILITY RELOCATION ............................................................................................. 13
2.08.01.00 Identification ......................................................................................................... 13
2.08.02.00 Critical Path ........................................................................................................... 13
3.00.00.00 TITLE REPORT, ESCROW SERVICES AND DEEDS .................................................... 14
3.01.00.00 TITLE REPORTS ....................................................................................................... 14
3.01.01.00 General .................................................................................................................. 14
3.01.02.00 Purpose .................................................................................................................. 14
3.01.03.00 Commission Policy ................................................................................................. 14
3.01.04.00 Title Information .................................................................................................... 14
3.01.05.00 Title Companies ..................................................................................................... 15
3.02.00.00 LITIGATION GUARANTEES ..................................................................................... 15
3.02.01.00 Purpose .................................................................................................................. 15
3.02.02.00 Commission Policy ................................................................................................. 15
TABLE OF CONTENTS
3.03.00.00 ESCROW SERVICES ................................................................................................. 15
3.03.01.00 Purpose .................................................................................................................. 15
3.03.02.00 Commission Policy ................................................................................................. 15
3.03.03.00 Escrow Instructions ............................................................................................... 15
3.03.04.00 Covenants, Conditions and Restrictions ................................................................ 16
3.03.05.00 Title Clearance ....................................................................................................... 16
3.03.06.00 Payment and Closing Procedure ........................................................................... 16
3.03.07.00 Recording of Documents ....................................................................................... 17
3.03.08.00 Escrow Companies ................................................................................................ 17
3.04.00.00 TITLE INSURANCE .................................................................................................. 17
3.04.01.00 Purpose .................................................................................................................. 17
3.04.02.00 Commission Policy ................................................................................................. 17
3.05.00.00 ALTA SURVEY ......................................................................................................... 17
3.05.01.00 Purpose .................................................................................................................. 17
3.05.02.00 Commission Policy ................................................................................................. 17
3.06.00.00 DEEDS ................................................................................................................... 18
3.06.01.00 Fee Simple Title ..................................................................................................... 18
3.06.02.00 Conveyances .......................................................................................................... 18
3.06.03.00 Forms ....................................................................................................................... 18
4.00.00.00 SURVEYS and LEGAL DESCRIPTION ........................................................................ 19
4.01.00.00 SURVEYS ................................................................................................................ 19
4.01.01.00 Purpose .................................................................................................................. 19
4.01.02.00 Commission Policy ................................................................................................. 19
4.01.03.00 Survey and Right of Way Engineering Companies ................................................ 19
4.02.00.00 LEGAL DESCRIPTION .............................................................................................. 19
4.02.01.00 Purpose .................................................................................................................. 19
4.02.02.00 Methods of Legally Describing the Fee or Portion Thereof .................................. 19
4.02.03.00 Description Writers ............................................................................................... 20
4.02.04.00 Commission Policy ................................................................................................. 20
5.00.00.00 APPRAISAL ............................................................................................................. 21
5.01.00.00 REAL PROPERTY APPRAISAL BASIC OPERATING POLICIES ..................................... 21
5.01.01.00 Policy ....................................................................................................................... 21
5.01.02.00 Necessity for Appraisal .......................................................................................... 21
5.01.03.00 Appraisal Not Required ......................................................................................... 21
TABLE OF CONTENTS
5.01.04.00 Review Appraisal ................................................................................................... 22
5.01.05.00 Notice to Property Owner of Decision to Appraise ............................................... 22
5.01.06.00 Record Keeping ...................................................................................................... 23
5.01.07.00 Fee Appraisers and Review Appraisers ................................................................. 23
5.02.00.00 REAL PROPERTY APPRAISAL REPORTS ................................................................... 23
5.02.01.00 Noncomplex Valuations ........................................................................................ 23
5.02.02.00 Appraisal Formats .................................................................................................. 24
5.02.03.00 General Criteria for Appraisals .............................................................................. 25
5.02.04.00 Instructions to Appraisers ..................................................................................... 25
5.02.05.00 Approaches to Value ............................................................................................. 25
5.02.06.00 Special Appraisal Considerations .......................................................................... 26
5.03.00.00 UNIFORM REGULATIONS ....................................................................................... 28
5.03.01.00 The Uniform Relocation Act .................................................................................. 28
5.03.02.00 Purpose .................................................................................................................. 28
5.03.03.00 Appraisal Requirements of the Uniform Relocation Act ....................................... 28
5.04.00.00 CALIFORNIA REGULATIONS ................................................................................... 29
5.04.01.00 Regulations ............................................................................................................ 29
5.04.02.00 Purpose .................................................................................................................. 29
5.04.03.00 California Appraisal Requirements ........................................................................ 30
5.04.04.00 Property Owner Appraisals ................................................................................... 30
5.04.05.00 State Requirements ............................................................................................... 30
5.05.00.00 SPECIALTY APPRAISALS .......................................................................................... 30
5.05.01.00 Outdoor Advertising Signs ..................................................................................... 30
5.05.02.00 Mobile Homes ....................................................................................................... 31
5.05.03.00 Goodwill Appraisals ............................................................................................... 31
5.05.04.00 Fixture and Equipment/Improvements Pertaining to Realty Appraisals .............. 31
5.06.00.00 CONTRACT APPRAISERS ........................................................................................ 31
5.06.01.00 Approved Contract Appraisers .............................................................................. 31
5.06.02.00 Selection of Contract Appraisers ........................................................................... 32
5.06.03.00 Non-Competitive Proposals for Contract Appraisers ............................................ 33
5.06.04.00 Review Appraisers ................................................................................................. 33
6.00.00.00 ACQUISITION, NEGOTIATION AND ENMINENT DOMAIN ...................................... 34
6.01.00.00 GENERAL PROVISIONS ........................................................................................... 34
6.01.01.00 Purpose .................................................................................................................. 34
TABLE OF CONTENTS
6.01.02.00 Authority to Acquire Land ..................................................................................... 34
6.01.03.00 Federal Code Requirement ................................................................................... 34
6.01.04.00 State Oversight Projects ........................................................................................ 34
6.01.05.00 Terminology ........................................................................................................... 34
6.01.06.00 Acquisition of Real Property Interest .................................................................... 35
6.01.07.00 Occupancy of Right of Way ................................................................................... 35
6.01.08.00 Public Meetings ..................................................................................................... 35
6.01.09.00 Project Field Inspection ......................................................................................... 35
6.01.10.00 Pre-Negotiation Public Relations Contacts ........................................................... 35
6.01.11.00 Who Conducts Negotiations.................................................................................. 35
6.01.12.00 Relocation Assistance Information ........................................................................ 36
6.02.00.00 ACQUISITION POLICIES .......................................................................................... 36
6.02.01.00 General Policies ..................................................................................................... 36
6.02.02.00 Payment Prior to Possession ................................................................................. 37
6.02.03.00 Coercion ................................................................................................................. 37
6.02.04.00 Institution of Condemnation Proceedings ............................................................ 37
6.02.05.00 Acquiring Property Owned by a Commission Employee or Member of the Board of
Commissioners ...................................................................................................... 37
6.02.06.00 Functional Replacement of Real Property in Public Ownership ........................... 37
6.02.07.00 Continuation of Possession on Rental Basis .......................................................... 37
6.02.08.00 Reimbursement of Property Owner’s Expenses ................................................... 37
6.02.09.00 Options .................................................................................................................. 38
6.02.10.00 Incentive Payments ............................................................................................... 38
6.03.00.00 ACQUISITION PROCEDURES .................................................................................. 38
6.03.01.00 Just Compensation ................................................................................................ 38
6.03.02.00 FTA Appraisal Concurrence ................................................................................... 38
6.03.03.00 Pre-Negotiation Preparation ................................................................................. 39
6.03.04.00 Initiation of Negotiations ...................................................................................... 39
6.03.05.00 Prompt Offer of Just Compensation...................................................................... 39
6.03.06.00 Offer Letter ............................................................................................................ 40
6.03.07.00 Tenant Interests .................................................................................................... 40
6.03.08.00 Offer Package ........................................................................................................ 41
6.03.09.00 Improvements Acquired or Damaged ................................................................... 41
6.03.10.00 Owner Retention of Improvements ...................................................................... 42
TABLE OF CONTENTS
6.03.11.00 Uneconomic Remnants ......................................................................................... 43
6.03.12.00 Leasehold Bonus Value .......................................................................................... 43
6.03.13.00 Condemnation Clause ........................................................................................... 43
6.03.14.00 Access Rights ......................................................................................................... 44
6.03.15.00 Construction Obligations ....................................................................................... 44
6.03.16.00 Exchanges and Abandonments ............................................................................. 44
6.03.17.00 Negotiator’s Report and Contact Log (Parcel Diary) ............................................. 44
6.03.18.00 Negotiating with an Attorney or Designated Representative ............................... 44
6.04.00.00 EARLY AND ADVANCED ACQUISITIONS ................................................................. 45
6.05.00.00 ACQUISITIONS WITH SPECIALTY CONSIDERATIONS .............................................. 46
6.05.01.00 Donations and Dedications ................................................................................... 46
6.05.02.00 Outdoor Advertising Structures and On Premise Advertising Signs ..................... 48
6.05.03.00 Hazardous Waste ................................................................................................... 49
6.05.04.00 Mobile Homes ....................................................................................................... 50
6.05.05.00 Federal and State Lands ........................................................................................ 51
6.05.06.00 Indian Lands ........................................................................................................... 51
6.05.07.00 Railroads ................................................................................................................ 51
6.05.08.00 Mining Claims ........................................................................................................ 51
6.05.09.00 Water Wells ........................................................................................................... 52
6.06.00.00 TITLE CLEARANCE .................................................................................................. 52
6.06.01.00 Clearance of Unrecorded Interests ....................................................................... 52
6.06.02.00 Presumption of Interest and Right to Cancel ........................................................ 52
6.06.03.00 Indemnification Clause .......................................................................................... 53
6.06.04.00 Easements ............................................................................................................. 53
6.06.05.00 Court Actions, Consent to Dismissal ..................................................................... 54
6.06.06.00 Clearance of Lessee Interest ................................................................................. 54
6.07.00.00 LOSS OF BUSINESS GOODWILL .............................................................................. 54
6.08.00.00 MEDIATION ............................................................................................................ 55
6.09.00.00 ADMINISTRATIVE AND LEGAL SETTLEMENTS ....................................................... 56
6.09.01.00 Purpose .................................................................................................................. 56
6.09.02.00 Settlement Authority ............................................................................................. 56
6.09.03.00 Legal Settlements .................................................................................................. 56
6.09.04.00 FTA Concurrence ................................................................................................... 57
6.09.05.00 Record Keeping ...................................................................................................... 57
TABLE OF CONTENTS
6.10.00.00 EMINENT DOMAIN ................................................................................................ 57
6.10.01.00 General .................................................................................................................. 57
6.10.02.00 FTA Concurrence ................................................................................................... 57
6.10.03.00 Notice of Intent to Adopt Resolution of Necessity ............................................... 57
6.10.05.00 Grantor’s Request for Appearance ....................................................................... 58
6.10.06.00 Record of Condemnation Case Status ................................................................... 58
6.10.07.00 Condemnation Suit ................................................................................................ 59
6.11.00.00 REPORTING OF ACQUISITIONS .............................................................................. 59
6.11.01.00 Commission Policy ................................................................................................. 59
6.11.02.00 1099-S Reporting Procedure ................................................................................. 59
6.11.03.00 Taxpayer Identification Numbers .......................................................................... 59
6.11.04.00 Methods of Reporting to the IRS ........................................................................... 60
6.12.00.00 PROJECT COMPLETION .......................................................................................... 60
6.12.01.00 Filing of Recorded Documents and Policy of Title Insurance ................................ 60
7.00.00.00 RELOCATION ASSISTANCE ..................................................................................... 61
7.01.00.00 GENERAL POLICIES AND INFORMATION ............................................................... 61
7.01.01.00 Policy ................................................................................................................... 61
7.01.02.00 Purpose .................................................................................................................. 61
7.01.03.00 Availability of the Relocation Program .................................................................. 61
7.01.04.00 Applicable Law and Regulations ............................................................................ 61
7.01.05.00 General Eligibility Requirements ........................................................................... 62
7.01.06.00 Cancellation of Eligibility as Displaced Person ...................................................... 62
7.01.07.00 Definitions ............................................................................................................. 62
7.01.08.00 Interest Acquired ................................................................................................... 69
7.01.09.00 Ownership Qualifications ...................................................................................... 69
7.01.10.00 Eviction for Cause .................................................................................................. 71
7.01.11.00 Incompetent Owner or Occupant ......................................................................... 71
7.01.12.00 Displacee Dies During Displacement Period ......................................................... 71
7.01.13.00 Rest Home and Nursing Home Patients ................................................................ 72
7.01.14.00 Displaced Students ................................................................................................ 74
7.01.15.00 Losses Due to Negligence ...................................................................................... 75
7.01.16.00 Displacee’s Refusal of Assistance .......................................................................... 75
7.01.17.00 Rental of Commission-Owned Property ................................................................ 75
7.01.18.00 Relocation Payments Not To Be Considered As Income ....................................... 77
TABLE OF CONTENTS
7.01.19.00 Delivery of Relocation Payment Checks ................................................................ 77
7.01.20.00 “Rounding” of Claim Amounts .............................................................................. 78
7.01.21.00 Duplicate Payments ............................................................................................... 78
7.01.22.00 Documentation Requirements .............................................................................. 78
7.01.23.00 Manner of Notices ................................................................................................. 79
7.01.24.00 Relocation Program on Projects Affected by a Major Disaster ............................. 79
7.01.25.00 Notice of Intent to Acquire .................................................................................... 80
7.01.26.00 Administrative Responsibility ................................................................................ 80
7.01.27.00 Legal Residency ..................................................................................................... 80
7.01.28.00 Loss of Goodwill .................................................................................................... 80
7.01.29.00 Manner of Disbursement ...................................................................................... 81
7.01.30.00 Basic Rights of Displaced Person ........................................................................... 81
7.02.00.00 RELOCATION PLANNING ........................................................................................ 81
7.03.00.00 RELOCATION ASSISTANCE ADVISORY SERVICE ..................................................... 82
7.03.01.00 General .................................................................................................................. 82
7.03.02.00 Purpose .................................................................................................................. 82
7.03.03.00 Eligibility for Advisory Service ............................................................................... 82
7.03.04.00 Advisory Service Requirements ............................................................................. 82
7.04.00.00 RELOCATION NOTICES ........................................................................................... 83
7.04.01.00 General Information Notice (“GIN”)...................................................................... 83
7.04.02.00 Notice of Relocation Eligibility .............................................................................. 84
7.04.03.00 Reminder Notice .................................................................................................... 84
7.04.04.00 90-Day Notices ...................................................................................................... 84
7.04.05.00 30-Day Notice to Vacate ........................................................................................ 85
7.04.06.00 60-Day Notice to Vacate (Mobile Home Park Occupants) .................................... 86
7.04.07.00 Notice to Vacate with Order of Possession ........................................................... 86
7.04.08.00 Notices to Unlawful Occupants ............................................................................. 86
7.04.09.00 Urgent Need .......................................................................................................... 86
7.05.00.00 COMPARABLE REPLACEMENT DWELLINGS ........................................................... 86
7.05.01.00 General .................................................................................................................. 86
7.05.02.00 Waiver of Policy on Comparable Replacement Housing Availability .................... 87
7.05.03.00 Emergency Move ................................................................................................... 87
7.05.04.00 Replacement Dwellings for Multiple Occupants of One Dwelling ........................ 87
7.06.00.00 RELOCATION CLAIMS ............................................................................................. 88
TABLE OF CONTENTS
7.06.01.00 Documentation of Claims ...................................................................................... 88
7.06.02.00 Deadline for Filing Claims ...................................................................................... 88
7.06.03.00 Claims for Multiple Occupants of One Dwelling ................................................... 88
7.07.00.00 RELOCATION PAYMENTS ....................................................................................... 89
7.07.01.00 Expeditious Payments ........................................................................................... 89
7.07.02.00 Assignment of Payment ........................................................................................ 89
7.07.03.00 Delivery of Payment .............................................................................................. 89
7.07.04.00 Advance Payments ................................................................................................ 89
7.07.05.00 Occupants Separate or Divorce ............................................................................. 89
7.07.06.00 Deduction from Payments .................................................................................... 90
7.07.07.00 Notice of Denial ..................................................................................................... 90
7.08.00.00 MOVING COSTS ..................................................................................................... 90
7.08.01.00 Payment Eligibility ................................................................................................. 90
7.08.02.00 General Moving Cost Policies ................................................................................ 90
7.08.03.00 General Moving Costs ........................................................................................... 94
7.08.04.00 Residential Moving Policies ................................................................................... 96
7.08.05.00 Residential Moving Costs ...................................................................................... 97
7.08.06.00 Business, Farm and Nonprofit Organization Moving Cost Policies ..................... 101
7.08.07.00 Business, Farm Operations and Nonprofit Organization Moving Costs ............. 101
7.08.08.00 Ineligible Moving Expenses ................................................................................. 106
7.09.00.00 BUSINESS REESTABLISHMENT ............................................................................. 107
7.09.01.00 Eligible Reestablishment Expense (49CFR) ......................................................... 107
7.10.00.00 FIXED/IN LIEU PAYMENT ..................................................................................... 108
7.10.01.00 Fixed/In Lieu Payments – Businesses .................................................................. 109
7.10.02.00 Fixed/In Lieu Payments – Farm Operations ........................................................ 111
7.10.03.00 Fixed/In Lieu Payments - Nonprofit Organizations ............................................. 112
7.10.04.00 Time for Filing “Fixed Payment Claims” .............................................................. 113
7.11.00.00 PURCHASE PRICE DIFFERENTIAL PAYMENT ........................................................ 113
7.11.01.00 General Policy ...................................................................................................... 113
7.11.02.00 Payment Eligibility Requirements ....................................................................... 114
7.11.03.00 Amount of Payment ............................................................................................ 115
7.11.04.00 Payment Computations ....................................................................................... 116
7.11.05.00 Replacement Housing Comparison Record ......................................................... 121
7.12.00.00 INCIDENTIAL CLOSING ......................................................................................... 122
TABLE OF CONTENTS
7.12.01.00 Definition of Incidental Closing Costs.................................................................. 122
7.12.02.00 Payment Eligibility Requirements ....................................................................... 123
7.13.00.00 INCREASED INTEREST PAYMENT ......................................................................... 123
7.13.01.00 General Policy ...................................................................................................... 123
7.13.02.00 Payment Eligibility Requirements (49 CFR) ......................................................... 123
7.13.03.00 Payment Computations ....................................................................................... 123
7.14.00.00 RENTAL SUBSIDY PAYMENTS ............................................................................... 124
7.14.01.00 General Policy ...................................................................................................... 124
7.14.02.00 Payment Eligibility Requirements for Tenants .................................................... 125
7.14.03.00 Payment Eligibility Requirements for Owners .................................................... 126
7.14.04.00 Payment Computations ....................................................................................... 126
7.15.00.00 DOWN PAYMENT ASSISTANCE ............................................................................ 130
7.15.01.00 General Policy ...................................................................................................... 130
7.15.02.00 Last Resort Payment Assistance for Tenants ...................................................... 130
7.15.03.00 Last Resort Payment Assistance for Owners ....................................................... 131
7.15.04.00 Payment Eligibility Requirements ....................................................................... 131
7.15.05.00 Payment Computations ....................................................................................... 131
7.15.06.00 Down Payment Claims ......................................................................................... 131
7.16.00.00 REPLACEMENT HOUSING OF LAST RESORT......................................................... 131
7.16.01.00 General Explanation ............................................................................................ 131
7.16.02.00 Last Resort Determination (49 CFR 24.404(a)).................................................... 132
7.16.03.00 Tenured Occupants ............................................................................................. 132
7.16.04.00 Short Term and Subsequent Occupants .............................................................. 132
7.16.05.00 Made Available .................................................................................................... 132
7.16.06.00 Methods of Providing Comparable Replacement Housing ................................. 133
7.16.07.00 Last Resort Housing Plan ..................................................................................... 134
7.17.00.00 APPEALS ............................................................................................................... 134
7.17.01.00 General (49 CFR 24.10(a)) ................................................................................... 134
7.17.02.00 Appealable Actions (49 CFR 24.10(b)) ................................................................. 134
7.17.03.00 Time Limit (49 CFR 24.10(c)) ............................................................................... 135
7.17.04.00 Right to Representation (49 CFR 24.10(d)) ......................................................... 135
7.17.05.00 Review of Files (49 CFR 24.10(e)) ........................................................................ 135
7.17.06.00 Scope of Review (49 CFR 24.10(f)) ...................................................................... 135
7.17.07.00 Agency Official – Commission Executive Director (49 CFR 24.10(h)) .................. 136
TABLE OF CONTENTS
7.17.08.00 Appeal Process .................................................................................................... 136
7.17.09.00 Determination and Notification After Appeal (49 CFR 24.10 (g)) ....................... 137
7.17.10.00 Additional Rights (Title 25, California Code of Regulations Chapter 6, Article 1, Section
6000 et seq., Section 6158 (a)) ............................................................................ 137
7.18.00.00 EVICTION FOR DISPLACEES .................................................................................. 137
7.18.01.00 Eviction Timing .................................................................................................... 137
7.18.02.00 Eviction Process ................................................................................................... 138
8.00.00.00 PROPERTY MANAGEMENT .................................................................................. 139
8.01.00.00 GENERAL PROVISIONS ......................................................................................... 139
8.01.01.00 Definitions ........................................................................................................... 139
8.02.00.00 RAIL PROPERTY MANAGEMENT POLICIES ........................................................... 140
8.02.01.00 Policies for the Management of Property and Resolution of Encroachments ... 140
8.03.00.00 RAIL PROPERTY MANGEMENT PROCEDURES ..................................................... 143
8.03.01.00 Application Process ............................................................................................. 143
8.03.02.00 Authority to Approve a License of Commission Property ................................... 144
8.03.03.00 Database for Fee-owned Property ...................................................................... 144
8.03.04.00 Database for License Agreements and Rights of Entry ....................................... 144
8.03.05.00 Property Inspections ........................................................................................... 145
8.03.06.00 Grants of Easement ............................................................................................. 145
8.03.07.00 License Agreements and Rights of Entry ............................................................. 145
8.03.08.00 Notice to Vacate Property ................................................................................... 146
8.03.09.00 Property Maintenance ........................................................................................ 146
8.04.00.00 INTERIM PROPERTY MANAGEMENT ................................................................... 147
8.04.01.00 Leaseback Agreements ........................................................................................ 147
8.04.02.00 Property Management Procedures ..................................................................... 148
8.04.03.00 Property Inspections ........................................................................................... 148
8.04.04.00 Preparation of Rights of Entry and License Agreements .................................... 150
8.05.00.00 REMOVING ENCROACHMENTS ........................................................................... 152
8.05.01.00 Resolution of Encroachments ............................................................................. 154
8.06.00.00 REMOVING CONTAMINATED MATERIALS ........................................................... 154
8.06.01.00 Contaminated Materials ...................................................................................... 155
8.06.02.00 Management of Contaminated Properties ......................................................... 155
8.07.00.00 DISPOSAL OF SURPLUS PROPERTIES ................................................................... 155
8.07.01.00 Authority of the Commission to Dispose of Surplus Land and Land Rights ........ 155
TABLE OF CONTENTS
8.07.02.00 Exemptions .......................................................................................................... 155
8.07.03.00 Property Advertisement ...................................................................................... 156
8.07.04.00 Policies for the Disposition and Sale of Surplus Land and Land Rights ............... 156
8.07.05.00 Procedures for the Disposition and Sale of Surplus Land and Land Rights......... 160
8.07.06.00 Disposition and Sale Process Checklist ................................................................ 160
8.07.07.00 Funding Sources .................................................................................................. 163
8.08.00.00 RENTAL POLICY .................................................................................................... 165
8.08.01.00 No Re-Rent .......................................................................................................... 165
8.08.02.00 Rental Agreements .............................................................................................. 165
8.08.03.00 Assignment of Rental Agreements ...................................................................... 166
8.08.04.00 Rental Amounts ................................................................................................... 166
8.09.00.00 RENT COLLECTION PROCEDURES ........................................................................ 171
8.09.01.00 Establishment of License Rental Amounts .......................................................... 171
8.10.00.00 PROPERTY LIABILITY/LOSS PREVENTION ............................................................. 172
8.10.01.00 Insurance/Indemnity ........................................................................................... 172
8.10.02.00 Ensure Risk Management, Hazard Protection and Liability Reduction ............... 173
8.10.03.00 Security Measures ............................................................................................... 173
8.10.04.00 Hazardous Waste and Materials ......................................................................... 174
8.10.05.00 Property Security ................................................................................................. 174
8.10.06.00 Property Maintenance ........................................................................................ 174
9.00.00.00 DEMOLITION, CLEARANCE AND RIGHT OF WAY CERTIFICATION ....................... 175
9.01.00.00 OVERVIEW ........................................................................................................... 175
9.01.01.00 Federal Funds ...................................................................................................... 175
9.01.02.00 Initial Clearance ................................................................................................... 175
9.01.03.00 Emergency Clearance .......................................................................................... 175
9.01.04.00 Historic Structures ............................................................................................... 176
9.01.05.00 Pre-Demolition Activities ..................................................................................... 176
9.01.06.00 Personal Property ................................................................................................ 176
9.01.07.00 Asbestos and Lead Paint Abatement .................................................................. 176
9.01.08.00 Demolition Contract ............................................................................................ 177
9.01.09.00 Clearance ............................................................................................................. 178
9.02.00.00 RIGHT OF WAY CERTIFICATION ........................................................................... 178
9.02.01.00 Elements and Definition ...................................................................................... 178
9.02.02.00 Requirements ...................................................................................................... 179
TABLE OF CONTENTS
9.02.03.00 Partial Right of Way Certification ........................................................................ 179
10.00.00.00 ENVIRONMENTAL INSPECTION, INVESTIGATION AND REMEDIATION ............... 180
10.01.00.00 GENERAL .............................................................................................................. 180
10.01.01.00 General ................................................................................................................ 180
10.01.02.00 Technical Resources ............................................................................................ 180
10.01.03.00 Permit to Enter .................................................................................................... 181
10.02.00.00 HAZARDOUS WASTE PROCESS ............................................................................ 182
10.02.01.00 Discussion in Project Study Report...................................................................... 182
10.02.02.00 Hazardous Waste Activities ................................................................................. 182
10.02.03.00 Site Investigation ................................................................................................. 182
10.02.04.00 Environmental Site Assessments ........................................................................ 183
10.02.05.00 Notify Owner and Appropriate Regulatory Agencies .......................................... 185
10.02.06.00 Hazardous Waste Problems Discussed in Project Report ................................... 185
10.02.07.00 Hazardous Waste Strategy .................................................................................. 185
10.02.08.00 Cleanup by Owner and/or Responsible Party ..................................................... 185
10.02.09.00 Remedial Investigation / Feasibility Study .......................................................... 186
10.02.10.00 Hazardous Waste Management Plan .................................................................. 186
10.02.11.00 Community Involvement Plan ............................................................................. 186
10.02.12.00 Remedial Action Plan........................................................................................... 186
10.02.13.00 Recovery Actions ................................................................................................. 187
10.02.14.00 Underground Storage Tanks................................................................................ 187
10.02.15.00 Hazardous Materials in Property Improvements ................................................ 187
10.03.00.00 RESPONSIBILITY FOR CLEAN UP .......................................................................... 187
10.03.01.00 During Acquisition ............................................................................................... 187
10.03.02.00 Purchase and Sale Agreements for Contaminated Property .............................. 189
10.04.00.00 APPRAISAL OF CONTAMINATED PROPERTY ........................................................ 190
10.04.01.00 Hazardous Waste Identification during Appraisal Inspection ............................. 190
10.04.02.00 Valuation ............................................................................................................. 191
11.00.00.00 UTILITY RELOCATIONS ......................................................................................... 193
11.01.00.00 GENERAL PROVISIONS ......................................................................................... 193
11.01.01.00 Scope ................................................................................................................. 193
11.01.02.00 Utility Coordinator Responsibilities ..................................................................... 193
11.01.03.00 Definitions ........................................................................................................... 194
11.01.03.10 Master Contract .................................................................................................. 196
TABLE OF CONTENTS
11.02.00.00 UTILITY RELOCATION POLICIES ............................................................................ 197
11.02.01.00 Applicable Utilities Policy .................................................................................... 197
11.02.02.00 Utilities on Commission Property ........................................................................ 198
11.02.03.00 Hazardous Waste Affected by Facility Relocations ............................................. 198
11.02.04.00 Verification of Utility Facilities ............................................................................ 198
11.02.05.00 Safety ................................................................................................................. 199
11.02.06.00 Advancing Cost of Relocation to Owner ............................................................. 199
11.02.07.00 Communication with Owner ............................................................................... 199
11.02.08.00 Policy on High and Low Risk Underground Facilities .......................................... 199
11.03.00.00 PLANNING PHASE ................................................................................................ 199
11.03.01.00 Initial Activities .................................................................................................... 199
11.03.02.00 Utility Relocation Work in Prior to Environmental Approval .............................. 200
11.03.03.00 Early Project Coordination .................................................................................. 200
11.03.04.00 Corridor/ Route Preservation .............................................................................. 200
11.03.05.00 Environmental Document Review ....................................................................... 201
11.03.06.00 Design Phase........................................................................................................ 201
11.03.07.00 Commencement of Design .................................................................................. 202
11.03.08.00 Utility Estimates................................................................................................... 202
11.03.09.00 Special Environmental Reviews for 50KV Electrical Facilities ............................. 202
11.03.10.00 Utility Facility Avoidance ..................................................................................... 203
11.03.11.00 Design of Utility Facility Relocations ................................................................... 203
11.03.12.00 Utility Consultant Design Requirements ............................................................. 203
11.03.13.00 Utility Verifications .............................................................................................. 203
11.03.14.00 Geometric Base Maps (GADS) ............................................................................. 204
11.03.15.00 Utility Verification Request to Owner ................................................................. 204
11.03.16.00 Owner’s Verification of Facilities ......................................................................... 204
11.03.17.00 Positive Location of Underground Facilities ........................................................ 204
11.03.18.00 Utility Coordinator Responsibilities for Positive Location................................... 205
11.03.19.00 Positive Location Agreements on State Highway and Freeway Projects (On-System)
205
11.03.20.00 Positive Location Requirements for High Risk Facilities...................................... 206
11.03.21.00 Utility Conflicts Identified .................................................................................... 206
11.03.22.00 Conflict Maps ....................................................................................................... 206
11.03.23.00 Request for Relocation Plans, Claim of Liability and Estimate of Cost ............... 207
TABLE OF CONTENTS
11.03.24.00 Receipt of Relocation Plans, Claim of Liability, and Estimate of Cost ................. 207
11.03.25.00 Special Provisions ................................................................................................ 207
11.04.00.00 ACQUISITION ....................................................................................................... 207
11.04.01.00 Acquisition of a Utility Facility ............................................................................. 207
11.04.02.00 Acquisition from the Utility Owner ..................................................................... 208
11.04.03.00 Acquisition for the Utility Owner (Replacement Right of Way) .......................... 209
11.04.04.00 Consent to Condemnation for Exchange Purposes from the Owner.................. 209
11.05.00.00 LIABILITY DETERMINATION ................................................................................. 210
11.05.01.00 Process ................................................................................................................. 210
11.05.02.00 Liability Calculation.............................................................................................. 210
11.05.03.00 Property Rights .................................................................................................... 211
11.05.04.00 Subsequent Relocations ...................................................................................... 215
11.05.05.00 Methods of Calculating Proration of Costs ......................................................... 215
11.05.06.00 Abandonment or Removal Costs ......................................................................... 216
11.05.07.00 Disruption of Service Facilities ............................................................................ 216
11.05.08.00 Relocation for Non-Transportation Project Use ................................................. 216
11.05.09.00 Liability Undetermined ........................................................................................ 217
11.05.10.00 Liability in Dispute ............................................................................................... 217
11.05.11.00 Agreement to Disagree ....................................................................................... 217
11.06.00.00 REPORT OF INVESTIGATION ................................................................................ 217
11.06.01.00 General ................................................................................................................ 217
11.06.02.00 Report of Investigation Plan ................................................................................ 218
11.06.03.00 Report of Investigation Plan Requirements ........................................................ 218
11.06.04.00 Owner’s Estimate of Cost .................................................................................... 219
11.06.05.00 Standard Estimate Format .................................................................................. 219
11.07.00.00 NOTICE TO OWNER ............................................................................................. 220
11.07.01.00 Notice to Owner to Relocate General ................................................................. 220
11.07.02.00 Joint Facility Relocations ..................................................................................... 220
11.07.03.00 Preparation .......................................................................................................... 220
11.07.04.00 Processing ............................................................................................................ 221
11.07.05.00 Utility Coordinator Responsibilities ..................................................................... 221
11.07.06.00 Owner Responsibilities ........................................................................................ 221
11.07.07.00 Relocation Monitoring......................................................................................... 222
11.07.08.00 Revised Notices ................................................................................................... 222
TABLE OF CONTENTS
11.08.00.00 UTILITY AGREEMENTS ......................................................................................... 222
11.08.01.00 Utility Agreements General ................................................................................. 222
11.08.02.00 Circumstances Requiring a Utility Agreement .................................................... 223
11.08.03.00 Standard Clauses ................................................................................................. 223
11.08.04.00 Processing ............................................................................................................ 223
11.08.05.00 Amendments to Utility Agreements ................................................................... 224
11.08.06.00 Amendments for Payments in Excess of Original Utility Agreement .................. 224
11.08.07.00 Amendments for Change in Scope of Work ........................................................ 224
11.08.08.00 Special Utility Agreements .................................................................................. 225
11.08.09.00 Utility Agreement to Cover Advance Engineering Effort .................................... 225
11.09.00.00 CERTIFICATION PHASE ......................................................................................... 225
11.09.01.00 Right of Way Utilities Certification ...................................................................... 225
11.09.02.00 Utility Certification for Design/Build Projects ..................................................... 226
11.10.00.00 CONSTRUCTION PHASE ....................................................................................... 226
11.10.01.00 General ................................................................................................................ 226
11.10.02.00 Pre-Construction Notification/Meeting .............................................................. 226
11.10.03.00 Positive Location Work During Construction ...................................................... 226
11.10.04.00 Inspection of Utility Relocation Work ................................................................. 227
11.10.05.00 Discovered Work and Emergencies ..................................................................... 227
11.10.06.00 Changes to Planned Relocation Work ................................................................. 228
11.10.07.00 Wasted Work ....................................................................................................... 228
11.11.00.00 PAYMENT PHASE ................................................................................................. 228
11.11.01.00 General ................................................................................................................ 228
11.11.02.00 Processing Bills from Owners .............................................................................. 228
11.11.03.00 Review of Owner’s Bill ......................................................................................... 229
11.11.04.00 Bill Discrepancies ................................................................................................. 229
11.11.05.00 Partial Billings ...................................................................................................... 229
11.11.06.00 Final Bills .............................................................................................................. 229
11.12.00.00 PROPERTY RIGHTS CONVEYANCES ...................................................................... 229
11.12.01.00 Requirements for JUA/CCUA ............................................................................... 230
11.12.02.00 Joint Use Agreements .......................................................................................... 230
11.12.03.00 Consent to Common Use Agreements ................................................................ 230
11.12.04.00 Prescriptive Rights ............................................................................................... 231
11.12.05.00 Easement Conveyance Processing ...................................................................... 231
TABLE OF CONTENTS
11.13.00.00 BUY AMERICA ...................................................................................................... 231
11.13.01.00 General ................................................................................................................ 231
11.13.02.00 Buy America Requirements ................................................................................. 231
11.13.03.00 Buy America Certification .................................................................................... 232
11.13.04.00 Waivers to the Buy America Provisions .............................................................. 232
12.00.00.00 PROJECT CLOSE OUT ............................................................................................ 233
12.01.00.00 PURPOSE .............................................................................................................. 233
12.02.00.00 FILE REVIEW AND QUALITY CONTROL ................................................................. 233
12.02.01.00 General ................................................................................................................ 233
12.02.02.00 Parcel Diaries ....................................................................................................... 233
12.02.03.00 Acquisition File Documentation .......................................................................... 233
12.02.04.00 Relocation File Documentation ........................................................................... 234
12.02.05.00 Utility Relocation File Documentation ................................................................ 234
12.02.06.00 File Retention ...................................................................................................... 235
12.03.00.00 POST RIGHT OF WAY ACTIVITIES ......................................................................... 235
12.03.01.00 Parcel Inventory .................................................................................................. 235
12.03.02.00 Right of Way Terms and Special Provisions ........................................................ 235
12.03.03.00 Co-Operative Agreements ................................................................................... 235
12.04.00.00 POST-PROJECT ACTIVITIES ................................................................................... 235
12.04.01.00 Confirmation of Right of Way Terms and Special Provisions .............................. 236
12.04.02.00 Land to be Retained by Commission ................................................................... 236
12.04.03.00 Land Conveyances to Other Agencies ................................................................. 236
12.05.00.00 EXCESS LANDS ..................................................................................................... 237
12.06.00.00 STREET VACATIONS ............................................................................................. 237
12.07.00.00 RELINQUISHMENTS ............................................................................................. 237
12.08.00.00 RECORD MAPS AND AS-BUILTS ........................................................................... 237
12.09.00.00 UTILITY RELOCATION FILE CLOSE-OUTS .............................................................. 237
GENERAL INFORMATION CHAPTER 1
1.00.00.00 GENERAL INFORMATION
1.01.00.00 INTRODUCTION
1.01.01.00 Reason
Right of way acquisition is a complex function. It is therefore imperative that policies be written
and procedures established to enable each employee of the Riverside County Transportation
Commission (Commission) Right of Way Department to be completely informed and able to
perform their duties in a skillful manner. Each right of way employee should perform his or her
assigned duties in a professional manner.
1.01.02.00 Scope
This manual contains the regulations, requirements and procedural directives governing the
operations of the Right of Way Department. It will be updated and amended as needed.
1.01.03.00 Purpose
This manual is to be used as the policy and procedures guide for right of way activities. It
establishes a uniform method for completing each phase of the right of way operation. Any
deviation from the prescribed policy needs authority from the Executive Director or designee.
1.01.04.00 Federal Regulations
Federal regulations governing right of way acquisition are found in 49 CFR Part 24. Compliance
with these regulations is required if federal funds are to be used in any part of a project. The
policy and procedures outlined in the following chapters of this manual are written to include
all of the federal requirements.
1.01.05.00 State Regulations
All laws, policies and regulations passed by the State of California governing right of way
acquisition shall be complied with. Eminent domain procedures shall be governed by the
California Code of Civil Procedure and the California Government Code.
1.01.06.00 FHWA, FTA and State - The Commission Relationship
The Federal Highway Administration (FHWA), Federal Transit Administration (FTA), State of
California Department of Transportation (State/Caltrans) and the Commission Right of Way
Staff may work cooperatively to assure all federal and state requirements for right of way
acquisition and relocation are met. FHWA, FTA and the State will periodically inspect the
Commission right of way records to assure that federal and state requirements are being
complied with. The Commission Right of Way Staff will cooperate by providing required records
and documents for inspection. All discrepancies and deficiencies discovered by the inspecting
agency will be reported in writing to the Executive Director or designee. The Executive Director
will examine the contents of the written reports and determine if those deficiencies or
discrepancies are not in compliance with approved Commission policies and will notify the
Right of Way Department of any adjustments in operating procedures that need to be
improved or revised.
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GENERAL INFORMATION CHAPTER 1
1.01.07.00 Communications and Letter Writing
Good communication, whether inter-department correspondence or outside correspondence is
essential. Copies of correspondence must be directed to all interested parties and placed in
pertinent files. Instructions provided during telephone conversations should be confirmed by
letter or memorandum and copies must be placed in pertinent files explaining actions taken in
response to telephone instructions.
1.01.08.00 Public Relations
Right of Way Staff are public relations agents of the Commission as they have direct contact
with the public. The appearance, attitude and reliability of the individual right of way employee
creates an image of the Commission in the eyes of those with whom they come in contact with.
Every effort must be made to reflect an image that is a credit to each employee and to the
Commission.
1.02.00.00 SUBDIVISION OF MANUAL
1.02.01.00 Explanation of Table of Contents
This manual is divided into chapters as set out in the table of contents. Each chapter is indexed
individually to allow additions, deletions and changes to be made without affecting the
continuity of the overall manual.
Chapters are divided into sections and numbered numerically. Each section is divided into
subjects, which are also numbered numerically.
1.02.02.00 Issue and Revision Dates
Each page is dated in the lower right-hand corner and each revision issued in the future will
show the revised date.
1.02.03.00 Retention of Revised Material
When revised material is issued, the revisions should immediately be placed in the manual
upon receiving approval from the Board of Commissioners. The Right of Way Department will
keep a permanent record of all revised sheets.
1.03.00.00 DISCRIMINATORY PRACTICES
1.03.01.00 General Policy Concerning Discrimination
Under no circumstances shall any form of discrimination be practiced by any employee or any
party under contract with the Commission, or on the part of any other party carrying out any
phase of the Commission’s right of way program.
Supervisors and all others responsible for carrying out the right of way program must be
constantly aware of the necessity for identifying, reporting, eliminating and/or correcting any
discriminatory practice which may occur. Any clearly defined practice suspected of being
RCTC ROW POLICIES & PROCEDURES -2- DRAFT 9/21/2015
GENERAL INFORMATION CHAPTER 1
discriminatory must be reported to the Executive Director, who will cause the discriminatory
claim to be investigated and, if sustained, see that appropriate corrective action is taken.
Policies and procedures designed to assure that discriminatory practices will not occur can be
separated into five (5) general categories. These categories are:
• Employment Practices – the Commission is an Equal Opportunity Employer
• Right of Way Acquisition
• Property Management
• Relocation Assistance
• Procurement Policy – the Commission Procurement Policy Manual adopted by the
Commission includes the following policy regarding non-discrimination in procurement
(Chapter 2.10.0): all formal contracts entered into by the Commission should contain
appropriate clauses prohibiting discrimination by the contractor against any person or
group of persons on account of race, color, religion, creed, national origin, ancestry,
physical handicap, medical condition, age, marital status, sex or sexual orientation in the
performance of the contract.
1.03.02.00 Employment Practices
Equal Employment Opportunity is fully applicable concerning the employment and promotion
of Right of Way Staff as set out in the Commission Personnel Manual.
1.03.03.00 Contract Procedures
Every contract for goods or services used in any phase of right of way shall be awarded to the
best-qualified individual or company without discrimination on the grounds of race, color,
religion, creed, national origin, sex, age, ancestry or physical ability. In addition, every contract
originated in the Right of Way Department must contain clauses prohibiting discriminatory
practices by contractors and subcontractors. Contractors shall comply with all applicable
federal, state and local laws, rules, regulations and ordinances relative to nondiscrimination.
If the contractor fails to comply with the non-discrimination provisions of the contract, the
Commission shall impose such contract sanctions as it or the FHWA, FTA or the State may
determine to be appropriate, including but not limited to:
• Withholding of payments to the contractor under the contract until the contractor
complies
• Cancellation, termination or suspension of the contract, in whole or in part
1.03.04.00 Right of Way Acquisition
All right of way acquisition policies and procedures, including those applicable to title search,
appraisal, negotiations, payments, closings, condemnation, possession, clearing and all other
related right of way activities, shall be identical and shall be identically applied in all dealings
with property owners from whom land, improvements or rights must be acquired for highway
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GENERAL INFORMATION CHAPTER 1
or rail purposes without regard to the owner’s race, color, religion, national origin, sex, age,
ancestry or physical ability.
The Right of Way Staff who comes in contact with property owners are also charged with the
responsibility of assuring that all such owners including Disadvantage Business Enterprises who
may have language or other communication problems fully understand the right of way
program as it relates to them.
1.03.05.00 Property Management
Every parcel of excess or surplus land and/or right of way and all improvements disposed of by
the Commission will be sold through negotiated sale without discrimination on the grounds of
race, color, religion, creed, national origin, sex, age, ancestry or physical ability.
Commission owned land and property that is available for rent, lease, joint development or
incidental use shall be rented, leased or jointly developed to interested persons or firms by
negotiations, without discrimination on the grounds of race, color, religion, creed, national
origin, sex, age, ancestry or physical ability.
1.03.06.00 Relocation Assistance
Under no circumstances shall any form of discriminatory practice be tolerated on the part of
any employee of the Commission or on the part of any persons, firms or corporations under
contract with the Commission in carrying out any phase of the Relocation Assistance Program.
Supervisors and all others responsible for carrying out the relocation program must be
constantly aware of the necessity of identifying, reporting, eliminating and/or correcting any
discriminatory practice which may occur. Any clearly defined discriminatory practice discovered
by Commission staff, or any practice seriously suspected of being discriminatory, must be
reported to the Executive Director.
1.03.07.00 Records and Reports
The Right of Way Department must maintain a separate file for each of the above five (5)
categories. The files shall contain each discriminatory practice case reported or discovered by
the Commission, source of information, all letters, transmittals and reports related to the
subject case, resume of the specific discriminatory action and an explanation of corrective
measures taken by the Commission.
It is the specific duty of the Right of Way Department to maintain the discriminatory practices
files even though they may be empty due to justifiable lack of information and/or activity and
make the records available to federal and state authorities.
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ROW MANAGEMENT PLAN CHAPTER 2
2.00.00.00 ROW MANAGEMENT PLAN
2.01.00.00 INTRODUCTION
2.01.01.00 Purpose
The right of way function encompasses several disciplines. The purpose of the Right of Way
Management Plan (“RAMP”) is to provide an overview of the right of way activities and
involvement in the total project. This RAMP is presented in general terms and will be amended
or modified pursuant to the nature of the project and funding source requirements.
Detailed right of way policies and procedures will be presented and discussed in succeeding
chapters.
2.01.02.00 Scope
Included in the right of way function are right of way acquisition, relocation of displaced
individuals and businesses, right of way engineering and surveying, appraisal and review,
property management, utilities relocation and environmental inspection and remediation and
condemnation support.
2.01.03.00 Title VI, Civil Rights Act
All services and benefits are administered to all eligible individuals without regard to race,
color, national origin, or sex in compliance with Title VI of the Civil Rights Act (42 U.S.C. 2000d,
et seq.)
2.02.00.00 RIGHT OF WAY ACQUISITION
2.02.01.00 Authority of the Commission to Acquire
Public Utilities Code Section 130220.5 authorizes the Commission to take any property
necessary, incidental or convenient to the exercise of its powers of eminent domain
proceedings or otherwise.
2.02.02.00 State Laws
With respect to initiation of condemnation proceedings, the following California Codes apply:
• California Code of Civil Procedure Section 1245.010-1245.270
• California Government Code Sections 7260-7277
2.02.03.00 Federal Laws and Regulations
The following federal regulations and policies apply to the right of way program:
• Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended (42 U.S.C. 4601 et seq.) 49 Part 24, as further amended by the Surface
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Transportation and Uniform Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17;
and the Final Rule dated January 4, 2005
• 23 CFR Parts 130, 480, 620, 630, 635, 645, 710, 712 and 713 – The Federal Highway
Administration, Right of Way Program Administration
• Federal Highway Administration, Office of Real Estate, Project Development Guide
• Federal Transit Administration Circular 5010.1D dated November 1, 2008, as amended,
titled Federal Transit Administration Grant Management Requirements
• Section 1521 of the Moving Ahead for Progress in the 21st Century Act (MAP-21)
2.02.04.00 Overview
The right of way acquisition program is designed to ensure the timely availability of those
parcels necessary for construction and ensure the fair, uniform and equitable treatment of
those displaced from their homes and businesses as a result of the project. The acquisition
process is divided into the following categories: identification of right of way requirements,
appraisal of required interest, negotiation and acquisition either through settlement or
condemnation and relocation as required. These activities are scheduled by the Right of Way
Manager against established construction deadlines.
2.02.05.00 Interest to be Acquired
Long-term real estate interests typically fall under three categories:
• A fee simple estate
• A leasehold estate
• Permanent easements
Accordingly, the Commission must have direct and sustaining control and unrestricted use of
the properties in accordance with the terms and conditions of the project.
Temporary construction easements, temporary access easements, temporary use permits,
licenses and right of entry agreements are examples of temporary property rights generally
obtained to perform various types of work incidental to construction. The type of work to be
performed determines which type of agreement is to be used.
Temporary construction and access easements are acquired for such things as access during
construction, work areas, establishment of detour roads, construction staging and storage
areas where the specified use is essential to completion of construction.
Temporary use permits and right of entry agreements are typically used when obtaining
permission to complete soil borings, archeological testing, hazardous materials testing, sloping
of lawns or reconstruction of driveways, where a nominal amount of money may be involved
and the effect of termination would not jeopardize completion of the project.
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2.02.06.00 Title Insurance
In case of temporary property rights, preliminary ownership information is obtained. Title
insurance is secured for the long-term property interests, insuring title effectively free and clear
of any liens and encumbrances other than current year’s taxes and assessments and
easements, covenants and restrictions which do not materially or adversely affect the use of
the property for the project.
Title insurance is always accompanied by a thorough title examination, which seeks to discover
if any defects exist. The title insurance policies are issued shortly after closing (the date the
Commission takes ownership of the property, e.g., the date when the deed to the Commission
is recorded). Under the policy, the title company agrees to defend the title of the Commission,
as the insured.
2.02.07.00 Identification of Right of Way
For typical design-bid-build or Construction Manager General Contractor (CMGC) projects,
identification of the parcels required for a project begins in preliminary engineering and is
concluded by the Engineer of Record during final design. This includes the long term property
rights required to accommodate the project alignment, rail projects, stations, station entrances
and permanent parking facilities, and the temporary property rights required for construction
access and storage yards.
For design-build projects, the design phase and construction phase overlap. The parcel
requirements, both long term and temporary, are acquired at various intervals throughout the
design process until final design is reached.
Detailed right of way requirements are identified and recommended by the Engineer of Record
that conform to the greatest public good and least private injury. To support a
recommendation, a licensed land surveyor is required to prepare an acquisition package to
include a right of way plat showing the location, size and shape of the parcel to be acquired; a
legal description of the area to be acquired and the name(s) of property owners and
computations of the areas to be acquired, and an appraisal map.
2.02.08.00 Scheduling
The Engineer of Record develops the priorities, by project segment, for right of way acquisition
activities. However, the Right of Way Manager identifies within each project segment, the
priorities for right of way acquisition by parcel in order to meet the construction schedule. The
schedule identifies projected dates for the various stages of the right of way acquisition process
and is updated regularly.
The Commission, through its Right of Way Manager, evaluates the right of way acquisition date
to ensure there are no conflicts and ensure integration of information into the Master Project
Schedule.
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2.03.00.00 APPRAISAL
2.03.01.00 Purpose
Appraisals are used to establish a basis for determining Just Compensation. The Uniform
Relocation Act, 49 CFR Part 24 allows the Commission to waive an appraisal, based on a review
of available data, if the Commission determines that the valuation problem is uncomplicated
and that fair market value is estimated at $10,000 or less or if the property owner is donating
the property and has released the Commission from the obligation to appraise the property.
Appraisal waivers are also allowed above the $10,000 threshold, up to a maximum of $25,000,
if the Commission offers the property owner the option of having the Commission appraise the
property and the property owner declines the appraisal. If negotiations are unsuccessful, a
standard appraisal must be performed prior to proceeding with condemnation. Moreover,
when FTA funds are involved, FTA Circular 5010.1D requires prior FTA concurrence when the
recommended offer of Just Compensation exceeds $500,000, or when a property appraised at
$500,000 or more must be condemned.
The Uniform Relocation Act, as well as FTA policy and procedures, requires that an appraisal
and a reviewer’s analysis be obtained on all parcels proposed for acquisition (other than those
determined above).
2.03.02.00 Basic Appraisal Process
The selection of independent fee appraisers is based on qualifications and experience for the
property being appraised in accordance with criteria for appraisals contained in 49 CFR Part 24.
Appraisers may be requested to give expert testimony in support of their value estimates in the
event of condemnation.
The property owner is notified in writing of the Commission’s interest in acquiring property
rights and basic protections provided to the owner by law. The owner or the owner’s
designated representative is given an opportunity to accompany the appraiser during the
appraiser’s inspection of the property.
The amount is recommended by the appraiser and confirmed by the review appraiser, and the
Executive Director or designee has final approval of Just Compensation.
Adherence to FTA, FHWA and State concurrence thresholds (depending on the funding source),
appraisal and settlement guidelines is required.
2.04.00.00 ENVIRONMENTAL INSPECTION
2.04.01.00 Purpose
Right of way acquisition for projects carries with it certain responsibilities to the community.
This policy addresses environmental concerns involving residential, commercial and industrial
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properties, which may be wholly owned by the Commission or in the process of being acquired
for a project.
Where there is a contamination factor or hazardous substance/waste affecting the property,
the estimated cost to remediate the contaminated property needs to be forwarded to the
Commission’s appraiser for consideration and possible inclusion in establishing fair market
value.
Typically, the Commission will retain the services of consulting firms to supervise remediation
of hazardous waste, asbestos and lead paint abatement. The Commission directs the
investigation, identification, control and disposal of hazardous waste, contaminated soil or
other material in accordance with the Environmental Protection Agency and other applicable
federal, state and local regulations.
2.04.02.00 Procedure
The procedure requires the Commission to hire a consultant to test for possible contamination
and if necessary, perform remediation of hazardous waste and asbestos abatement. The
Commission directs the investigation, identification, control and disposal of hazardous waste,
contaminated soil or other materials in accordance with the Environmental Protection Agency
and other applicable governmental regulations and oversite agencies.
Depending upon the nature of the hazardous material (usually waste products), its origin and
the intensity of the product generation, decisions as to the extent of hazard protection are
made on a case-by-case basis, as outlined below:
• Residences are usually not a major generator, but are examined for asbestos, floor tile,
certain pipe (steam) or boiler wrappings, lead paint and other conditions.
• Commercial properties may generate hazardous materials due to waste products used,
abandoned transformers containing Polychlorinated Biphenyl (PCB) type immersion
fluids, and asbestos and other products.
• Industrial properties may generate hazardous materials such as by-products and other
non-useful products, buried waste, insulation products (asbestos), PCB products or
similar materials, underground storage tanks and other waste.
• Vacant land may accumulate hazardous materials as a result of spills, indiscriminate
storage and/or dumping, irresponsible management of hazardous materials, and
accidents or past pesticide use on agricultural properties.
Each type of property is handled in the following manner:
• Identification of hazardous waste materials as officially (federally) defined
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• Examination of potentially hazardous site to determine the risk of hazard, if any via field
examination by Commission representatives
• Preparation of a list of areas and the degree of concern
• Preparation of a schedule to address the issue
• Evaluation of the hazard, to determine responsibility for cleanup and their use of the
property
• Obtain legal opinion where appropriate
• Identification of funding source
• Coordination with the applicable regulatory agency
2.04.03.00 Documentation
The following steps may be utilized to prepare the documentation for identification of potential
hazards and their ultimate disposal and mitigation:
• Prepare a RFP to obtain proposals for hazardous materials removal
• Review proposals received for removal
• Request an estimate for hazardous materials removal
• Perform an environmental analysis, utilizing appropriate procurement procedures
• Review work schedule
• Provide adequate oversight to ensure hazardous materials are thoroughly and properly
removed and disposed of
• Ensure all governmental (federal and state) approvals and clearances are obtained
• Provide approval of contractor and consultant requests for payment
• Obtain site closure and No Further Action letter
2.05.00.00 NEGOTIATIONS
2.05.01.00 Acquisition Agents
Right of way consulting firms may be retained to assist with negotiations for land acquisitions if
it has been clearly shown that such procedure is in the best public interest.
2.05.02.00 Procedure
Every reasonable effort is made to acquire all interests in real property by voluntary
conveyance through negotiations. The general procedures utilized during the negotiation
process are as follows:
• A Right of Way Department staff person or a right of way consultant contacts each
property owner to deliver a written offer of the approved amount of Just Compensation
and to discuss the Commission’s acquisition policies and procedures. Whenever
practical, negotiations are conducted by direct, personal contact with the property
owner or his/her representative.
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The written offer is accompanied by an appraisal, except in waiver valuations, indicating
the basis for the amount established as Just Compensation. As per California
Government Code, the appraisal shall contain detail sufficient to indicate clearly the
basis for the offer, including, but not limited to: (1) The date of valuation, highest and
best use and applicable zoning of property; (2) The principal transactions, reproduction
or replacement cost analysis, or capitalization analysis, supporting the determination of
value. (3) The Just Compensation for the real property acquired and for damages to
remaining real property shall be separately stated and shall include the calculations and
narrative explanation supporting the compensation, including any offsetting benefits.
• Any business owner on the property is notified in writing by the Right of Way Manager
(or designee) of their eligibility for applicable relocation assistance and provided a
written description of the Commission’s relocation program and their rights under the
Uniform Relocation Act.
• A reasonable amount of time (to be determined on a case-by-case basis) is given to the
owner to consider the offer and to present information, which may not have been
considered during the appraisal process. The Commission provides a full copy of the
appraisal and appraisal review reports with each offer. The Commission will consider
the owner’s presentation. Once agreement is reached and the proper forms executed,
an escrow is opened and the transfer of ownership is completed.
• In cases where the owner rejects the original offer and it is feasible to increase the offer
rather than file for condemnation, an administrative settlement is negotiated. Decisions
on administrative settlements are coordinated by the Right of Way Manager and are
based on items, such as the appraiser’s opinion of value and recent court awards for
similar types of properties involved in the condemnation process. For FTA funded
projects, FTA Circular 5010.D requires prior FTA concurrence for administrative
settlements in excess of $50,000 more than the current fair market value.
• In the opinion of the Right of Way Manager, when the possibility of reaching agreement
by negotiation has been exhausted, a request to proceed with condemnation is directed
to legal counsel. Condemnation is the least desirable acquisition method and is only
used when all other methods have failed. When the Commission project is FTA funded,
FTA prior concurrence is required when a property appraised at $500,000 or more must
be condemned.
• Negotiations shall continue with the owner’s attorney or representative through the
Commission’s legal counsel during any condemnation action in an effort to reach
settlement.
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2.06.00.00 RELOCATION
2.06.01.00 Relocation Agents
Relocation consultants may be retained to develop a relocation plan and administer relocation
assistance and benefits as required, pursuant to the Uniform Relocation Act if it has been
clearly shown that such procedure is in the best public interest.
2.06.02.00 Relocation Program
The Uniform Relocation Act provides for certain relocation advisory services and benefits in
addition to the amount a person receives as Just Compensation for property. The Commission
relocation program is designed to conform to the requirements of the Uniform Relocation Act
and to provide the maximum assistance allowed to the displaced owners and tenants.
A relocation advisory program is established to provide the maximum assistance allowed to all
persons required to relocate. The relocation consultant implements the program under the
supervision of the Right of Way Manager (or designee). Relocation brochures are available to
describe the relocation benefits available to residential and commercial displacees.
2.06.03.00 Appeal Process
Any person aggrieved or otherwise dissatisfied by a determination regarding their eligibility for
a relocation benefit or by the amount of any such payment may file an appeal requesting
review of their case by the Commission Appeals Board within sixty (60) days after receipt of the
Commission’s determination of the person’s claims. (See Chapter 7)
2.07.00.00 RIGHT OF WAY PROPERTY MANAGEMENT
2.07.01.00 Scope
Property management involves the control and management of land and improvements from
the time title is vested with the Commission until the property is used for the purpose it was
acquired. It is the function concerned with the interim management of all newly acquired right
of way and any improvements thereon, including demolition and disposition of excess property
remnants or property rights. In cases where there are existing contracts, such as leases or
licenses, involved in the right of way acquired, it will encompass management of those
contracts.
2.07.02.00 Right of Way Inventory
An important property management tool is the right of way inventory. An electronic indexing
system for all the Commission right of way is overseen by the Right of Way Manager. Individual
property sheets include information such as type and description of asset, title policy, parcel ID
numbers, legal description, type of interest, term of rental, instrument of conveyance and
effective date, liens and encumbrances, appraisal value, acquisition cost and (federal or state)
share of acquisition cost expressed in dollars and dollars per square foot.
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2.07.03.00 Aging and Receivables Report
In cases where there are existing contracts involved in the right of way acquired, an
Aging/Receivables Report will be developed. This report will include the name of the
tenant/licensee, location of the subject property, monthly/annual rent, date rent is due, term,
renewal options, date rent will be increased and the basis for rent increase and payment status.
All future leases, licenses and right of entry agreements should include “boiler plate” provisions
such as:
• The Commission’s right to terminate by providing 30 days written notice to the lessee
• The Commission’s right to enter and inspect the property at any time
• Indemnification and hold harmless clauses
• Insurance provisions to protect the Commission against liability
The report should be generated on a quarterly basis. The Right of Way Department will
coordinate accurate and timely reporting with the Finance Department.
2.08.00.00 UTILITY RELOCATION
2.08.01.00 Identification
During the design and engineering process, utilities affected by the proposed construction will
be identified. Typically, the affected utilities may need to be relocated, protected in place or
possibly abandoned. Early identification of utility conflicts and early coordination with the
utility company is highly recommended as timely design and completion of all utility
relocations affect the Commission’s ability to commence construction. All potential utility
conflicts and their replacement locations will be identified in consultation with the
Commission’s engineering consultant.
2.08.02.00 Critical Path
In preparing the Right of Way Acquisition Schedule, the Right of Way Department will give
priority to acquiring properties or property interests necessary for utility relocation.
Right of Way Staff, in conjunction with the project utility coordinator, will be responsible for the
negotiation, preparation and execution of utility relocation agreements and it will monitor
utility relocation costs and schedule.
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TITLE REPORT, ESCROW SERVICES AND DEEDS CHAPTER 3
3.00.00.00 TITLE REPORT, ESCROW SERVICES AND DEEDS
3.01.00.00 TITLE REPORTS
3.01.01.00 General
For the purpose of this manual the terms “Title Reports”, “Preliminary Title Reports and PTR”
are interchangeable.
3.01.02.00 Purpose
Preliminary Title Reports (PTRs) are used to establish ownership and identify liens and
encumbrances on property. PTRs are used in the preparation of surveys, legal descriptions,
offer letters, right of way contracts and utility relocation plans.
A PTR is an offer to insure and issue a title policy with the listed exceptions. Most PTRs contain
a disclaimer stating that a PTR is not a written representation as to the condition of title to real
property, and may not list all liens, defects, and encumbrances affecting title to the land.
California Insurance Code Section 12340.11 states that “Preliminary report”, “commitment”, or
“binder” are reports furnished in connection with an application for title insurance and are
offers to issue a title policy subject to the stated exceptions set forth in the reports and such
other matters as may be incorporated by reference therein. No contract or liability exists until
the title insurance policy is issued.
3.01.03.00 Commission Policy
It is the policy of the Commission to obtain a PTR on all fee simple and less than fee simple
property rights acquisitions. However, for Rights of Entry, ownership information can be
obtained from the County assessor or an on-line provider of ownership information. Upon
identification of the property to be acquired, the Project Engineer, Commission Right of Way
Staff or its consultant may order the PTR from an approved title company by providing an
assessor’s parcel number, property address or assessor’s map.
3.01.04.00 Title Information
The following title information is usually included in a PTR:
• Owner name and parcel size
• Special assessments
• Trust deeds and mortgages
• Liens and encumbrances such as taxes, easements and judgments
• Covenants and restrictions
An updated PTR should be ordered prior to closing escrow on the purchase of properties and
property interests.
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3.01.05.00 Title Companies
An approved list of “on call” title companies may be established through the Commission
Procurement Process.
3.02.00.00 LITIGATION GUARANTEES
3.02.01.00 Purpose
A Litigation Guarantee ensures the accuracy of interests in the property for purposes of a legal
proceeding. It sets forth the current record of title and encumbrances on the real property at
issue and identifies the parties who should be named in the lawsuit. The Litigation Guarantee
insures against claims of lienholders, if any, who should have been but were not made parties
to the action because they were not named in the Litigation Guarantee.
3.02.02.00 Commission Policy
If a PTR is obtained during the acquisition process, it must be upgraded to a Litigation
Guarantee prior to condemnation. If a Litigation Guarantee is obtained during the acquisition
process, it must be updated to current status prior to condemnation.
3.03.00.00 ESCROW SERVICES
3.03.01.00 Purpose
The purpose of using escrow services is to ensure that the title and ownership of properties and
property interests acquired by the Commission are free and clear of liens and encumbrances
that will adversely affect the use of the property for the project.
3.03.02.00 Commission Policy
It is the policy of the Commission to secure the services of an escrow company in all of its
transactions involving the acquisition of properties and property interests. Exceptions may be
allowed with approval.
3.03.03.00 Escrow Instructions
Upon submission of the right of way contract to escrow, the escrow company will issue escrow
instructions to all parties to the transaction. Documents that may need to be deposited into
escrow in order to complete the transaction include:
• Grant deed, quitclaim deed, lease, easement deed, etc.
• Instructions to escrow agent to issue a policy of title insurance in the amount specified
in the escrow instruction, vesting title to the Commission, free and clear of
encumbrances, except those otherwise stated
• Statement indicating which of the title exceptions, listed in the PTR, will be acquired
“subject to” by the Commission and should be on the title policy
• Instruction as to disposition of taxes
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• Authorization to pay the proper demands from lien holders, in accordance with the right
of way contract and pay the balance to the grantor(s)
3.03.04.00 Covenants, Conditions and Restrictions
Title may be acquired subject to the conventional, general or individual type of tract
restrictions, provided the nature and effect are known and considered. Unusual covenants or
conditions which restrict land for a specific use, such as park purposes, school purposes,
railroads, shall be considered particularly as to a possible forfeiture of title upon breach or
violation. Conveyances to clear such reversionary interests should be secured as necessary.
3.03.05.00 Title Clearance
It is incumbent on the surveyor, appraiser and the Acquisition Agent to examine the preliminary
title report to determine the condition of title. This would include vesting information, liens,
encumbrances, easement, covenants, conditions and restrictions, leases, reservations, taxes,
assessments, bonds, trust deeds, mortgages and contracts of sale and bonds. Every effort to
secure clear title for the Commission must be made. Items which cannot be cleared will have to
be acquired subject to the encumbrance and will require the State’s pre-approval for later
acceptance into the State Highway System.
The PTR must be analyzed to determine which exceptions will be cleared and which will remain
on title to be acquired subject to the encumbrance. Encumbrances involving the public record
should include the appropriate book and page or date and instrument number. Liens and
encumbrances not listed must be cleared before payment is made. The Acquisition Agent
should assist the property owner in clearing title of such liens and encumbrances.
If an encumbrance affects a portion of the grantor’s land other than that being acquired by the
Commission, it does not need to be eliminated. All encumbrances adverse to Commission title
must be cleared unless adequate reason clearly justifies taking title subject to such
encumbrances. The actual and potential effect of each exception on title should be considered.
3.03.06.00 Payment and Closing Procedure
The escrow company shall, prior to payment and escrow closing, obtain from the grantor(s)
their tax identification number or social security number or federal employer identification
number.
The Right of Way Department shall request the Accounting Department to wire the funds
necessary to close after receiving the estimated closing statement and wiring instructions from
escrow. Payments to escrow companies may be delivered in person or by certified mail with
return receipt requested. Submission of payment to escrow companies shall include the escrow
number, assessor’s parcel number, name of property owner, and check number/check or wiring
instructions. Owners are to be notified of the date the payment is delivered to the escrow
company.
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Delivery of payment for the acquisition of minor property rights, such as rights of entry, permits
and temporary licenses, may be delivered by Right of Way Staff or its consultant. Right of Way
Staff or its consultant will obtain the signature of the recipient acknowledging receipt of the
payment. Payments mailed to owners shall be accompanied by a letter and sent by certified
mail with return receipt requested.
It will be the responsibility of the Acquisition Agent to ensure that all documents and payment
required for escrow closing be delivered as scheduled. The closing instructions will be reviewed
to determine whether all necessary instruments to clear title have been executed and
recorded. Taxes shall be pro-rated or in cases of partial acquisitions, properly segregated upon
recordation of the deed conveying the property to the Commission.
3.03.07.00 Recording of Documents
All documents conveying land, easements, realty rights, trust deed, mortgage releases and
restrictive easements to the Commission, regardless of consideration recited therein, shall be
recorded in the appropriate Recorder’s Office.
3.03.08.00 Escrow Companies
An approved list of “on call” title companies may be established through the Commission
Procurement Process.
3.04.00.00 TITLE INSURANCE
3.04.01.00 Purpose
An owner’s policy of title insurance is secured to insure title effectively free and clear of any
liens and encumbrances other than current year’s taxes and assessments, easements,
covenants and restrictions which do not materially or adversely affect the use of the property
for the project.
3.04.02.00 Commission Policy
It is the policy of the Commission to secure title insurance for all long term property interests.
3.05.00.00 ALTA SURVEY
3.05.01.00 Purpose
An ALTA Land Survey is the most comprehensive of all surveys. It provides the same coverage
as a standard policy, but it covers the property owner against additional risks. An ALTA survey
is used to determine property lines, locate improvements, identify easements, utilities, and
many other conditions affecting the property.
3.05.02.00 Commission Policy
It is the policy of the Commission to secure an ALTA survey for any acquisition where there may
be a dispute over the property boundary.
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TITLE REPORT, ESCROW SERVICES AND DEEDS CHAPTER 3
3.06.00.00 DEEDS
3.06.01.00 Fee Simple Title
An unencumbered fee simple title to real property gives its owner the right to use and enjoy
the property in any manner, provided its uses are in compliance with prevailing laws and
ordinances. Fee simple title represents the whole bundle of rights over real property from
which many pieces or segments may be conveyed or leased.
3.06.02.00 Conveyances
• Grant Deed. The transfer of all rights and control over real property. It is used to
acquire fee simple title to real property.
• Easement Deed. The transfer of less than fee simple title to real property. Easement
Deeds may be permanent or temporary depending on project requirements. It also
includes aerial easements and public utility easements.
• Quitclaim Deed. The transfer of any right held by the grantor over real property. This is
the least desirable means of acquiring property rights.
• Final Order of Condemnation. The transfer of any right sought through the eminent
domain process.
3.06.03.00 Forms
All forms of legal instruments used to acquire property and property rights on behalf of the
Commission shall be “approved as to form” by legal counsel.
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SURVEYS AND LEGAL DESCRIPTION CHAPTER 4
4.00.00.00 SURVEYS and LEGAL DESCRIPTION
4.01.00.00 SURVEYS
4.01.01.00 Purpose
The purpose of a survey is to establish and calculate property ownership boundaries, right of
way requirements and excess land. It is used as a basis for all right of way acquisitions and legal
descriptions.
4.01.02.00 Commission Policy
It is the Commission’s policy to establish property boundaries for the following acquisitions:
• Total parcels
• Partial parcels
• Permanent easement rights
• Temporary construction and access easements
• Excess land
All surveys shall be signed and sealed by a licensed surveyor or engineer.
4.01.03.00 Survey and Right of Way Engineering Companies
It is the Commission’s policy to establish an approved list of “on call” survey companies through
the procurement process.
4.02.00.00 LEGAL DESCRIPTION
4.02.01.00 Purpose
The purpose of a legal description is to accurately define, from legally established monuments
and survey data, land areas or rights to be conveyed.
4.02.02.00 Methods of Legally Describing the Fee or Portion Thereof
• Metes and Bounds Description. This method defines the perimeter of the area by
directions and/or bearings and distances. This type of description must commence at a
known established monument, such as section corner or “tied” to a subdivision or
portion thereof that has been previously filed at a Recorder’s office.
• Centerline or Baseline Description. The centerline method is sometimes used for
highway purposes and identifies the right of way as being a strip of land offset on either
side by a specified width oriented to a center line. The baseline method is employed in
the same manner as the centerline except right of way is dimensioned from the baseline
rather than centerline. When the baseline is used it should reference the center median
of the highway whenever possible. The centerline or baseline for right of way
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SURVEYS AND LEGAL DESCRIPTION CHAPTER 4
descriptions must be “tied” to section corners or lot corners of properly filed
subdivisions.
• Government Land Survey Description. This method describes land in relation to the
government land survey system under which land is broken down into areas called
townships. Townships are for the most part 36 square miles or 6 miles square. Each
township is broken down into 36 sections; each section is usually 640 acres. Sections in
each township are numbered consecutively beginning with number 1 in the northeast
corner of the township, and counting right to left then left to right and so on weaving
back and forth through the sections of the township, and ending with number 36 in the
southeast corner.
• Lots and Block Description. This method is based on plat maps lodged with the County
public records. The plat map subdivides areas into subdivisions, which may then be
divided into blocks and lots.
4.02.03.00 Description Writers
It is preferred that legal descriptions be written and plat maps prepared by the same company
that prepared the survey for the property or property interest being acquired.
4.02.04.00 Commission Policy
It is the Commission’s policy that a currently licensed surveyor stamp be included on all legal
descriptions for the following acquisitions:
• Total parcels
• Partial parcels
• Permanent easement rights
• Temporary construction and access easements
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APPRAISALS CHAPTER 5
5.00.00.00 APPRAISAL
5.01.00.00 REAL PROPERTY APPRAISAL BASIC OPERATING POLICIES
5.01.01.00 Policy
It shall be the policy of the Commission to secure at least one appraisal of each acquisition
having an estimated value exceeding $10,000. Appraisals will be prepared in an approved
appraisal format and comply with the provisions of Federal Uniform Relocation Assistance and
Real Property Acquisition Policies Acts, California eminent domain law and the Uniform
Appraisal Standards of Professional Appraisal Practice (USPAP) or the Uniform Appraisal
Standards for Federal Land Acquisitions (“Yellow Book”), prior to initiation of negotiations. All
appraisals for projects utilizing federal funds will be reviewed by a qualified review appraiser.
5.01.02.00 Necessity for Appraisal
An Appraisal is necessary to ensure compliance with the Constitutional requirement to pay
“Just Compensation” when private property is acquired or damaged for public use. The
measure of “Just Compensation” is “fair market value” which is contained in an Appraisal
Report.
An appraisal is generally required for acquisition and record keeping purposes. The report shall
contain a summary of basic information, determination of highest and best use and conclusions
together with pertinent supporting data.
5.01.03.00 Appraisal Not Required
An appraisal is not required if the Commission determines that an appraisal is unnecessary
because the valuation problem is noncomplex and the fair market value is estimated at $10,000
or less, based on a review of available data. An appraisal waiver may also be used up to a
maximum of $25,000, if the Commission offers the property owner the option of having the
Commission appraise the property and the property owner declines the appraisal.
The right of way department staff or designated consultant should prepare a waiver valuation
and a “Determination of Just Compensation.” A waiver valuation is not an appraisal and is used
merely for documentation in support of the amount of Just Compensation to be paid to the
property owner. The “Determination of Just Compensation” may be documented with a diary
entry, stating the basis of the value conclusion, i.e., land value (with calculations) and
improvement value. In addition, a photograph(s) of the property must be included. Waiver
valuations are not subject to USPAP.
Waiver valuations cannot be used for condemnation filings.
An appraisal is also not required if the property owner is donating or exchanging the property
and has released the Commission from the obligation to appraise the property.
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APPRAISALS CHAPTER 5
The criteria to be considered in making the determination of whether the parcel valuations are
noncomplex are:
• There is no serious question as to highest and best use
• Adequate market data is available
• Substantial damages and benefits are not involved
• There is no substantial decrease in market value due to the presence of hazardous
waste.
5.01.04.00 Review Appraisal
All appraisals for federally funded projects, whether prepared by Commission staff or by an
independent fee appraiser, must be reviewed by an independent review appraiser.
Before an appraisal is sent to a review appraiser, Commission staff shall internally review the
appraisal to ensure that it accurately states the following:
• Property address
• Property owner(s) name
• Property APN
• Purpose of the appraisal
• Property interests to be acquired
• Legal description and plat map of the property interest to be acquired
The review appraiser must review the appraisal(s) for compliance with the appraisal contract,
State and Federal Law requirements and USPAP. The review appraiser may choose from the
following:
• Recommend the valuation of an appraisal as Just Compensation
• Not recommend or accept the appraisal even though it meets all requirements
• Develop and report an amount believed to be Just Compensation
When the review appraiser finds the report lacking in content, support, reasoning, or
conclusion, the review appraiser may elect to supplement the areas considered lacking,
including modifying the appraised value. A written report clearly delineating the areas in
question and full support and documentation for the reviewer’s conclusions must be provided.
5.01.05.00 Notice to Property Owner of Decision to Appraise
When the Commission decides to appraise a property for acquisition, written notice must be
given to the property owner. The written notice shall include the following:
• The specific area being considered for a particular public use, i.e., the project
• The owner’s property is located within the area
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• That all or a portion of the owner’s property (which should be generally described) may
be acquired for public use
• An offer for the owner or owner’s representative to accompany the appraiser on an
inspection of the property
• Reasonable notice of the date and time of the inspection
Enclosed with the written notice will be a written explanation of the eminent domain process
and description of property owner rights and a Title VI Brochure.
5.01.06.00 Record Keeping
The original appraisal and review appraisal, when applicable, as well as an electronic copy, shall
be kept in each particular parcel file.
5.01.07.00 Fee Appraisers and Review Appraisers
It is the Commission’s policy to establish an approved list of “on call” fee appraisers and review
appraisers.
5.02.00.00 REAL PROPERTY APPRAISAL REPORTS
5.02.01.00 Noncomplex Valuations
Appraisal reports of noncomplex valuations of $25,000 or less must include at least the
following:
• Parcel summary page
• Senior Field Review Certificate
• Certificate of Appraiser
• Photograph(s) of the property
• Index map
• Appraisal map
• Comparable data pages with photographs
• Comparable data map
• An identification of significant personal property
Waiver Valuations with a determination of Just Compensation less than $10,000 must include
the following:
• Determination of Just Compensation and Title Page
• Certificate of Determination of Just Compensation
• Parcel summary page
• Senior Review Certificate
• Photograph(s) of property
• Index map
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• Appraisal map
• An identification of significant personal property
Waiver valuations may be prepared by knowledgeable Commission staff or right of way
consultants and do not have to be completed by an appraiser.
5.02.02.00 Appraisal Formats
Appraisal Report Format - USPAP 2-2(a). This format is required when there are other intended
users in addition to the client and one of the following occurs:
• There is a substantial acquisition and the appraisal problem is judged to be complex. The
complexity might be due to the nature or value of the acquisition of land,
improvements, property rights, and/or consequential damages resulting from the
acquisition.
• The highest and best use of a property is different from existing use.
• The remainder is an uneconomic remnant.
• Damages, other than cost to cure, are more than nominal.
• Decreases or increases in market value due to the proposed improvements are involved.
• More than one approach to value will be applied.
• Restricted Appraisal formats are unsuitable for any reason.
• There is a possibility of eminent domain proceedings.
• A “Complex Specialty” report is needed. Specialty Reports are used to assist the
principal appraiser in estimating contributory value of specialty items, such as
machinery and equipment.
• A Uniform Residential Appraisal Report (URAR Form) may be used when the following
occurs:
-The subject property is a single family residence.
-The residential improvements represent the highest and best use of the property.
-It is a total acquisition or in the case of a partial acquisition the remainder is an
uneconomic remnant.
Restricted Appraisal Report Format - USPAP 2-2(b). Use this format when the only intended
user is the client and one of the following occurs:
• The value will be low but the property requires an appraisal.
• The appraisal involves only vacant land or land with minor improvements.
• Before and after valuations are not required.
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APPRAISALS CHAPTER 5
5.02.03.00 General Criteria for Appraisals
• Appraisals may not include any payment of relocation assistance benefits or consider
that such relocation payments will be made.
• Appraisals must be independently prepared and each appraisal must be signed by the
individual(s) making the appraisal and include appropriate certification prior to
submittal for review.
• Documentation by reference is acceptable when the referenced material is in the
Commission’s files.
• Qualifications of all appraisers and all technicians who contribute to the report must be
in the Commission’s files or in the report.
• Fee appraisers must be State Licensed.
• Appraisals must be consistent with the Uniform Standards for Professional Appraisal
Practice (USPAP).
• Appraisals may also need to be consistent with the Uniform Appraisal Standards for
Federal Land Acquisitions.
• Appraisals must comply with State approved requirements.
5.02.04.00 Instructions to Appraisers
When Commission staff order an appraisal, clear and specific written instructions in the form of
a scope of work will be provided which will include the following information:
• Address of the property to be appraised
• Assessor’s Parcel Number
• Owner of the property, mailing address and phone number (if available)
• Name of tenant (if any), mailing address and phone number (if available)
• Purpose of the appraisal (estimate Just Compensation; disposal/sale of excess; etc.)
• Interest to be appraised (total/partial acquisition; easement; aerial rights; rental
estimate; access rights; loss of business goodwill; outdoor signs
• Legal description of property (in cases of partial acquisition, provide legal description of
remainder)
• Survey/plat maps
• Fee to be paid to appraiser (if more than one (1) appraisal is involved, itemize fees)
• Specific date when appraisal(s) is due to be completed
• Contact person at the Commission
5.02.05.00 Approaches to Value
• Sales Comparison Approach. This approach should be developed and relied upon
whenever there is adequate market data. The approach shall include adequate research
to identify all pertinent similar properties for which sales, listings or rental data are
available.
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APPRAISALS CHAPTER 5
All comparable information will be confirmed by the buyer, seller, broker or other
person having knowledge of the price, terms and conditions or the reason for not so
confirming shall be stated.
Significant adjustments for similarities and dissimilarities such as market conditions,
location, physical and economic characteristics, and motivation for the transaction shall
be individually explained. Substantial lump sum adjustments are not acceptable.
• Cost Approach. This approach can be relied upon when appraising a special purpose
property. However, this should not be used unless the special purpose improvements
develop the property to its highest and best use and a potential buyer would reasonably
consider, as an alternative, the cost of acquiring comparable site and reproducing the
improvements. The cost of the improvements to a site with a different highest and best
use should be addressed together with the incurable obsolescence inherent in this type
of analysis.
It shall consist of factual data beginning with reproduction or replacement cost and shall
state the specific sources of all figures used. Physical deterioration, functional and
external obsolescence shall be individually supported in narrative form. All calculations
must be shown. The appraiser’s opinion of the value of the land shall be supported by
confirmed comparable sales in the same manner as in the sales comparison approach.
• Income Approach. Reliance in this approach normally occurs only when the property is
truly an investment property where market data is inadequate. It shall include verified
market data arranged to show and support, as a minimum, gross economic rent or
income, allowance for vacancy and credit losses, itemized estimate of each pertinent
expense and any reserves for replacement.
Capitalization of net income shall be at a rate prevailing in the market for the type of
property and location. Capitalization technique and rate used shall be explained in a
narrative form and supported by a statement of the market facts, which support such
rates and factors, and appraiser’s analysis of such market factual data that leads to the
conclusion of the capitalization rate.
5.02.06.00 Special Appraisal Considerations
The following are special considerations in reviewing appraisals (internally):
• American with Disabilities Act of 1990 (“ADA”). The ADA applies to any public
accommodation, commercial facility or private entity that offers examinations or
courses related to applications, licensing, certification or credentialing for secondary or
post-secondary education, professional or trade purposes. It requires that all new
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APPRAISALS CHAPTER 5
improvements after January 26, 1993 must be designed and constructed to be readily
accessible and usable by individuals with disabilities.
Property to be appraised shall be inspected on the date of valuation for its compliance
or non-compliance with ADA regulations. All comparable sales should be analyzed as to
their compliance or non-compliance to ADA regulations.
• Hazardous Waste or Materials. Properties that involve hazardous waste or materials (as
defined by state and federal laws) will be appraised under two scenarios. The first
reflects the hypothetical condition as if free and clear of hazardous waste and the
second is recognizing the effects of hazardous waste or materials, or “as is”. For the
second valuation the appraiser must consider the estimated cost of cleanup
requirements, market data of properties with comparable cleanup problems and
marketability of parcels with known hazardous waste problems.
• Access Rights. The value of access rights is measured by the loss of value of the
remaining property before and after the restriction.
• Agricultural Improvements. Agricultural buildings, farm residences and specialized
fences will be valued as improvements at depreciated value in place.
• Severance Damages. Severance damage is the loss in value of remaining property after
acquisition and construction. Severance damages are valued by appraisal of the
remainder as a portion of the total property in the before condition and as a remainder
in the after condition (disregarding the benefits of the construction project).
• Cost to Cure. Some severance damages may be mitigated or entirely eliminated by
estimating the cost to cure the damage.
• Benefits. Benefits are valued by appraising the remainder before and after the
acquisition and construction of the project. Benefits are to be offset against any
severance damages.
• Public Utility Parcels. Property owned in fee by public utilities (including governmental
utility agencies) utility agencies, irrigation districts and flood control districts may be
subject to special treatment, including the purchase of replacement land for exchange.
• Excess Land Appraisal. Excess land will be valued using a Market Value Appraisal or
Market Value Determination ($10,000 or less) and excess land with a highest and best
use as plottage (joinder or assemblage) to an adjoining property will be appraised at the
amount it adds to the value of the adjoining property. The before and after valuation
method will be used.
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• Airspace Valuations. Methods in appraising airspace rights will be the same as those
applied in appraising any right of way acquisition parcel, except that consideration
should be given to all of the factors that may limit or enhance its utility because of the
existence of the project improvement located on or near the parcel. Full consideration
will be given to any enhancement of real estate values in the area because of the
location of the project improvement.
• Rent Determination. A fair market rent determination is an estimate of the amount of
rent, which a parcel would command in the open market, if offered under the terms and
conditions typical of the market for similar properties.
5.03.00.00 UNIFORM REGULATIONS
5.03.01.00 The Uniform Relocation Act
Regulations implementing appraisal standards of the Uniform Relocation Act are found in 49
CFR Part 24. The Uniform Relocation Act applies to any federal or federally-assisted program or
project if federal funding is to be used in any phase of the program or project. Federal funding
for the right of way acquisition is not the key in determining whether or not federal
requirements apply to appraisals. If federal funds are going to be used in any part of the
project, but not in acquiring right of way, the Uniform Relocation Act still applies to the
appraisals and acquisitions.
5.03.02.00 Purpose
The purpose of the Uniform Relocation Act is to ensure that all property owners are treated
fairly and uniformly when it is necessary for their property be acquired for any Federal or
federally-assisted program or project.
5.03.03.00 Appraisal Requirements of the Uniform Relocation Act
The amount determined to be Just Compensation must be established by the Commission
before the initiation of negotiations (the first time a formal written offer is presented to the
owner preferably in person or by certified mail, if necessary).
Any decrease or increase in the market value of the property, which is caused by the public
improvement or its likelihood prior to the date of valuation, must be disregarded by the
appraiser, except physical deterioration within the reasonable control of the owner.
When property values go up or down because of the proposed public improvement, the
appraiser must disregard such changed value when estimating the before value but not in
estimating the after value as permitted by state law, typically represented as damages and/or
benefits.
The appraiser should consider the possibility of uneconomic remnants and the Commission
must offer to buy any remainder that is of little or no value or utility to its owner.
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The appraiser must separately state damages to the remainder property and value of the
property acquired.
All buildings, structures and improvements, including those owned by tenants, as part of the
real property if they will be required to be removed or will be adversely affected must be
valued by the appraiser.
Tenant owned buildings, structures and improvements must be appraised as part of the real
property based on their contributory value as if they could remain in place, or their value for
removal (salvage value), whichever is greater. Lease terms requiring tenants to remove
building, structures or improvements must be disregarded and appraise as if they could stay
through their useful life as extended by normal maintenance.
If the Commission acquires any interest in real property, it must acquire equal interest in any
buildings, structures and improvements located upon the real property, which the Commission
will require to be moved or will adversely affect.
This also applies to tenant owned buildings, structures and improvements located on the real
property, even if the tenant is required by lease to remove them at the end of the lease. Such
buildings, structures and improvements will be valued at contributory value as part of real
property or value for removal (salvage value), whichever is greater.
An adequate description of the items identified as personal property. When there is agreement
as to ownership between fee owner and tenant, the Commission must make a separate offer to
tenant for tenant owned buildings, structures and improvements, thus, there must be a
separate appraisal.
5.04.00.00 CALIFORNIA REGULATIONS
5.04.01.00 Regulations
Appraisal requirements for any acquisition that utilizes the power of eminent domain in the
State of California are found in Government Code Section 7267, et seq. and California Code of
Civil Procedures 1263, et seq.
5.04.02.00 Purpose
The purpose of the California regulations is to encourage and expedite the acquisition of real
property by agreements with owners, to avoid litigation and relieve congestion in the courts, to
assure consistent treatment for owners in the public programs, and to promote public
confidence in public land acquisition practices.
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APPRAISALS CHAPTER 5
5.04.03.00 California Appraisal Requirements
The owner, or the owner's designated representative, shall be given an opportunity to
accompany the appraiser during his or her inspection of the property.
The fair market value of the property acquired is defined as the highest price on the date of
valuation that would be agreed to by a seller, being willing to sell but under no particular or
urgent necessity for so doing nor obliged to sell, and a buyer, being ready, willing, and able to
buy but under no particular necessity for so doing, each dealing with the other with full
knowledge of all the uses and purposes for which the property is reasonably adaptable and
available.
The appraisal shall include the date of valuation, highest and best use, applicable zoning of
property, principal transactions, reproduction or replacement cost analysis, or capitalization
analysis, supporting the determination of value, if appropriate, the just compensation for the
real property acquired and for damages to remaining real property shall be separately stated
and shall include the calculations and narrative explanation supporting the compensation,
including any offsetting benefits.
Compensation for damages to the remainder is the amount of the damage to the remainder
reduced by the amount of the benefit to the remainder. If the amount of the benefit to the
remainder equals or exceeds the amount of the damage to the remainder, no compensation
shall be awarded.
5.04.04.00 Property Owner Appraisals
California Code of Civil Procedures 1263.025 requires the Commission to offer to pay the
reasonable costs, not to exceed five thousand dollars ($5,000), of an independent appraisal
ordered by the owner of a property that the public entity offers to purchase under a threat of
eminent domain, at the time the public entity makes the offer to purchase the property. The
independent appraisal must be conducted by an appraiser licensed by the Office of Real Estate
Appraisers.
5.04.05.00 State Requirements
All appraisals for State Highway System projects must meet all conditions and forms outlined in
Chapter 7 of the Caltrans Right of Way Manual.
5.05.00.00 SPECIALTY APPRAISALS
5.05.01.00 Outdoor Advertising Signs
Outdoor advertising signs will be valued as improvements unless they are owned by outdoor
advertising companies. If relocation of such signs is feasible, that fact may be shown for
information purposes only. Outdoor advertising signs may be valued by a goodwill appraiser or
a fixtures and equipment appraiser. Caltrans Right of Way Manual 7-EX-14 contains a schedule
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APPRAISALS CHAPTER 5
for outdoor advertising values, however, the schedule may not be utilized for condemnation.
Legal counsel should be consulted as to the approach for valuing outdoor advertising signs.
5.05.02.00 Mobile Homes
As a general rule, mobile homes are considered realty if installed on the owner’s land. They are
considered personal property if tenant-owned or they do not meet “decent, safe and sanitary
standards”; no adequate number of suitable replacements sites are available; or, they are not
roadworthy and thus incapable of being moved. Mobiles Homes that are considered personal
property should not be valued as they will be covered under Relocation Assistance.
5.05.03.00 Goodwill Appraisals
Code of Civil Procedure, Title 7, Eminent Domain Law, Chapter 9, Article 6, Sections 1263.510,
520 and 530 provide the basis for compensating the owner of a business for the loss of
goodwill.
The business owner shall be compensated for the loss of goodwill if the owner proves that the
loss is caused by the Commission’s acquisition of the property and that the loss cannot
reasonably be prevented by a relocation of the business or by taking steps and adopting
measures that a reasonably prudent person would take and adopt to preserve the goodwill.
The business owner has the burden of proof for loss of goodwill.
The business owner must be notified, in writing, of the owner’s right to claim a loss of business
goodwill. The notice must be sent by certified mail with return card requested together with a
questionnaire asking for information about the business. A reasonable time for the owner to
respond must be set forth in the letter.
Goodwill valuation shall be prepared under the direction of the Commission’s legal counsel.
Reports will be submitted to the Commission’s legal counsel.
5.05.04.00 Fixture and Equipment/Improvements Pertaining to Realty Appraisals
Trade fixtures, equipment, machinery, and other items installed for use on a property will be
appraised if they cannot be removed without a substantial economic loss or without substantial
damage to the property on which it is installed. Appraisals for improvements pertaining to
realty shall be prepared by a qualified individual in accordance with current and appropriate
standards and will contain cost sources for each item.
5.06.00.00 CONTRACT APPRAISERS
5.06.01.00 Approved Contract Appraisers
It is the Commission’s policy to establish a current roster of approved contract appraisers
through the procurement process. This roster will be updated according to procurement
guidelines and based on the Commission’s work requirements.
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5.06.02.00 Selection of Contract Appraisers
Every effort shall be made to select the most qualified appraisers available to the Commission.
Appraisers will be classified into:
General Fee Appraisers. Appraisers qualified to perform all types of appraisal will be included
in this classification, such as residential, commercial, industrial and agricultural property
appraisers.
Specialty Appraisers. Appraisers who are well qualified (based on education, training and
experience) to evaluate airspace leases, hazardous waste, mobile homes, outdoor advertising
signs or other specialty items. Specialists performing services of this nature may be members of
appraisal or engineering firms whose principal occupation is the appraisal of specialty items,
contractors who are engaged in the installation of such items or equipment, or suppliers or
dealers of such specialty items who are fully qualified to offer an opinion of value. They must be
capable of submitting written information, which is essential to explain, substantiate and
thereby document their opinion in accordance with accepted appraisal principles and
techniques. Specialty Appraisers must be qualified to provide expert testimony in eminent
domain and other real estate related court proceedings.
Goodwill Appraisers. Appraisers who are well qualified (based on education, training and
experience) to evaluate business goodwill for a variety of businesses. Specialists performing
services of this nature may be members of appraisal firms whose principal occupation is the
appraisal of going concerns and who are fully qualified to offer an opinion of value. They must
be capable of submitting written information, which is essential to explain, substantiate and
document their opinion in accordance with the Uniform Standards of Professional Appraisal
Practice or any other applicable standards and accepted appraisal principles and techniques.
Specialty Appraisers must be qualified to provide expert testimony in eminent domain and
other real estate related court proceedings.
Furniture, Fixtures and Equipment Appraisers. Appraisers who are well qualified (based on
education, training and experience) to evaluate furniture fixtures or equipment or other
specialty items. Specialists performing services of this nature may be members of appraisal or
engineering firms whose principal occupation is the appraisal of personal property items,
contractors who are engaged in the installation of such items or equipment, or suppliers or
dealers of such items who are fully qualified to offer an opinion of value. They must be capable
of submitting written information, which is essential to explain, substantiate and thereby
document their opinion in accordance with the Uniform Standards of Professional Appraisal
Practice or any other applicable standards and accepted appraisal principles and techniques.
Specialty Appraisers must be qualified to provide expert testimony in eminent domain and
other real estate related court proceedings.
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5.06.03.00 Non-Competitive Proposals for Contract Appraisers
In instances when Specialty Items will be appraised, the Right of Way Department may select
the most qualified appraiser(s) available for the particular assignment. Consideration should be
given to anticipated appraisal problems, talents, skills and special qualifications of the individual
appraiser. The Right of Way Manager shall exert best efforts in negotiating the lowest cost
possible for the appraisal assignment.
5.06.04.00 Review Appraisers
It is the Commission’s policy to establish an approved list of “on call” review appraisers through
the procurement process. Review appraisal contracts will be awarded in the same manner as
contract appraisers.
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ACQUISITION, NEGOIATION AND EMINENT DOMAIN CHAPTER 6
6.00.00.00 ACQUISITION, NEGOTIATION AND ENMINENT DOMAIN
6.01.00.00 GENERAL PROVISIONS
6.01.01.00 Purpose
The purpose of this section is to establish the Commission policies and procedures related to
the acquisition function in negotiations for land, property and rights necessary for the proper
and economical construction and maintenance of Commission projects. The intent and purpose
of the policies and procedures are to assure uniform acquisition practices, which will provide
consistent and equitable treatment of owners and tenants of real property acquired by the
Commission for public purposes.
6.01.02.00 Authority to Acquire Land
Public Utilities Code Section 130220.5(a) authorizes county transportation commissions,
including the Commission, to make contracts and enter into stipulations of any nature
whatsoever either in connection with eminent domain proceedings or otherwise.
6.01.03.00 Federal Code Requirement
Acquisition of private property for public use utilizing federal funds is to be in accordance with
the following:
• United States Code entitled “Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601 et seq.) 49 CFR Part 24, as
further amended by the Surface Transportation and Uniform Relocation Assistance Act
of 1987, Title IV of Pub. L. 100-17; and the Final Rule dated January 4, 2005.
• 23 CFR Parts 130, 480, 620, 630, 635, 645, 710, 712 and 713 – The Federal Highway
Administration, Right of Way Program Administration
• Federal Highway Administration, Office of Real Estate, Project Development Guide
• Federal Transit Administration Circular 5010.1D dated November 1, 2008, as amended,
titled Federal Transit Administration Grant Management Requirements
• Section 1521 of the Moving Ahead for Progress in the 21st Century Act (MAP-21)
6.01.04.00 State Oversight Projects
Commission projects on the California State Highway System (on-system) will have State
oversight and must adhere to Chapter 17 of the Caltrans Right of Way Manual. Commission
projects utilizing FHWA or State funds that are not on the State Highway System (off-system)
will also have State oversight and must adhere to Chapter 13 of the Caltrans Local Assistance
Procedure Manual.
6.01.05.00 Terminology
For purposes of this Right of Way Manual, the following terms are synonymous:
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• Acquisition and negotiation
• Negotiator, acquisition consultant, acquisition agent and right of way consultant
• Right of Way Staff and contract negotiator
• Offer and offer of Just Compensation
• Eminent domain and condemnation
6.01.06.00 Acquisition of Real Property Interest
All rights, title, interest of fee and subordinate interests in real property within the right of way
and/or easement boundaries are to be acquired as necessary for economical construction,
operation, protection, support, preservation and maintenance of the project.
6.01.07.00 Occupancy of Right of Way
The area within right of way boundaries is devoted to public use. Any encroachments, use of
airspace, joint development or multiple uses of right of way and installation of public and
private facilities must be in accordance with established regulations and policies governing such
uses.
6.01.08.00 Public Meetings or Hearings
Right of Way Staff may be required to attend public meetings and hearings when the Executive
Director, Project Delivery Director or project management staff present information concerning
the Commission’s projects and programs. The Right of Way Staff will be available to answer
questions concerning the Commission’s right of way acquisition process and will become
familiar with possible problems that may arise during the right of way acquisition process.
6.01.09.00 Project Field Inspection
Right of Way Staff are encouraged to participate in project field inspections. If field inspections
reveal that a revision in the design would contribute to the social, economic or environmental
effects of a project, the Right of Way Manager should immediately advise the Project Manager.
6.01.10.00 Pre-Negotiation Public Relations Contacts
Acquisition Agents may be assigned to make or receive calls from property owners and discuss
right of way procedures and provide general information concerning the proposed project prior
to actual offers and negotiations. Right of Way Staff, who may be later involved with the
appraisal, acquisition, or relocation for the project, may make or receive such calls. Care should
always be taken to avoid discussing assumptions, possible offers, possible damage, value
conclusions or any other discussion that may lead to a claim of pre-condemnation damages.
This initial call should be brief and is only intended to provide project information and promote
public relations.
6.01.11.00 Who Conducts Negotiations
• Right of Way Staff. Negotiations for the acquisition of real property and/or property
rights for Commission projects will be conducted by qualified Right of Way Staff.
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• Acquisition Consultants. Negotiations may also be conducted by Acquisition
Consultants who have a written agreement with the Commission and under the
direction of the Right of Way Manager.
6.01.12.00 Relocation Assistance Information
Residential owner occupants being displaced are to be provided an explanation of the
relocation benefits for which they are eligible. General relocation assistance information should
be provided at the same time or shortly after the offer.
6.02.00.00 ACQUISITION POLICIES
6.02.01.00 General Policies
• It is the policy of the Commission that all negotiations shall be expeditious and result in
the property owner receiving Just Compensation, the settlement being just and fair to
the owner and the public. Every courtesy, consideration and patience will be extended
to the property owner to create and establish trust in the Commission, the members of
its Board of Commissioners and its employees.
• All offers shall represent the approved amount of Just Compensation as determined
through the Commission’s valuation procedures. Right of Way Staff or the Acquisition
Agent shall make a reasonable effort to demonstrate and promote confidence in the
approved Just Compensation offer.
• If the Acquisition Agent discovers facts, which were not recognized in the Just
Compensation, the information shall be made available to the Right of Way Manager
who will evaluate and give full consideration to those items prior to continuation of
negotiations.
• Acquisition Agents must demonstrate that they represent the interest of the property
owner as well as those of the public. Care should be exercised at all times to protect the
interests of owners who may be unfamiliar or inexperienced in real estate transactions.
• Acquisition Agents are required to maintain a written record of negotiations,
documenting that all elements of the transaction were given adequate consideration
and that there was a mutual understanding between the Acquisition Agent and the
property owner.
• The Commission shall make every reasonable effort to expeditiously acquire real
property by negotiation. Real property shall be appraised before initiation of
negotiations, and the owner, or his designated representative, shall be given an
opportunity to accompany the appraiser during the inspection of the property.
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6.02.02.00 Payment Prior to Possession
No owner will be required to surrender possession of real property acquired by the Commission
prior to payment of the agreed purchase price or payment of the amount determined by the
court to be probable Just Compensation.
6.02.03.00 Coercion
In no event shall the Commission either advance the time of condemnation, or defer
negotiations or condemnation and the deposit of funds in court for the use of the owner, or
take any other action coercive in nature, in order to compel an agreement on the price to be
paid for the property.
6.02.04.00 Institution of Condemnation Proceedings
If any interest in real property is to be acquired by exercise of the power of eminent domain,
the Commission shall institute formal condemnation proceedings.
6.02.05.00 Acquiring Property Owned by a Commission Employee or Member of the Board
of Commissioners
When the property or property interest to be acquired by the Commission is owned fully or
partially by a Commission employee or a member of the Board of Commissioners, the Right of
Way Department will consult legal counsel to ensure that conflict of interest laws are not
violated.
6.02.06.00 Functional Replacement of Real Property in Public Ownership
When publicly owned real property, including land and/or facilities, is to be acquired by the
Commission in lieu of paying the fair market value of the real property, the Commission may,
with prior approval of FTA or FHWA, provide compensation by functionally replacing the
publicly owned real property with another facility which will provide equivalent utility. (See 23
CFR Part 710.509).
6.02.07.00 Continuation of Possession on Rental Basis
If the Commission permits an owner or tenant to occupy their real property acquired on a
rental basis for a short term, or for a period subject to termination by the Commission on short
notice, the amount of rent required shall not exceed the fair market rent of the property for
short term occupancy.
6.02.08.00 Reimbursement of Property Owner’s Expenses
6.02.08.01 Out of Pocket Expenses. The Commission may reimburse property owners for
expenses incurred in development of a property, when development is
interrupted by acquisition, provided certain criteria are met and an audit of the
validity of the claimed expenses supports such payment. Expenses incurred by
the property owner for the following items are reimbursable by the Commission:
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• Change in development, architectural, structural and drainage plans
• Map checking fees
• Building permit fees materials
• Survey fees
• Inspection fees
6.02.08.02 Reimbursement of Mortgage Prepayment Penalty. Owners will be reimbursed
for actual penalty costs for prepayment of a preexisting mortgage entered into in
good faith and recorded prior to initiation of negotiations.
6.02.09.00 Options
The Commission may consider utilizing options on a project specific basis.
Options allow the Commission to reserve rights to purchase the property in the
future by making an upfront payment substantially less than the full market
value of the property. Options may be entered into prior to completion of the
environmental process (NEPA/CEQA) with the permission of the funding agency.
The future purchase price of the property may be established at the time the
option is purchased, or the option may define the process by which fair market
value is determined.
6.02.10.00 Incentive Payments
The Commission may consider utilizing incentive payments on a project specific
basis. Incentive payments provide for an agency to pay an additional amount
above the appraised value if the property owner signs within a specified
timeframe. The funding agency should be consulted prior to implementation of
an incentive payment program as the federal agency may or may not participate
in the incentive payment program.
6.03.00.00 ACQUISITION PROCEDURES
6.03.01.00 Just Compensation
Prior to initiating negotiations for the acquisition of real property, the Executive Director or
designee shall establish an amount which it believes to be Just Compensation. In no event shall
the amount of Just Compensation be less than the Commission’s approved appraisal of the fair
market value of the property.
6.03.02.00 FTA Appraisal Concurrence
For FTA projects, prior FTA concurrence is required when the Commission’s recommended offer
of Just Compensation exceeds $500,000, or when a property appraised at $500,000 or more
must be condemned. Appraisals and appraisal reviews must be submitted for review.
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6.03.03.00 Pre-Negotiation Preparation
The Negotiator should ensure possession of all materials and information necessary to conduct
and complete negotiations for the orderly and efficient acquisition of a property for the
proposed project. At a minimum, the Negotiator should be supplied with the following:
• Title report of all recorded interests in the property
• Survey/plat, legal description or appraisal map
• Documents necessary to acquire all interests
• Right of way plans
• Appraisal reports
• Basis for Just Compensation
• Offer letter
• Title VI Brochure
• Overview of the Eminent Domain Process and Description of Property Owner Rights
Brochure
In order to make an informed explanation of the proposed acquisition to an owner, the
Negotiator should make a comprehensive study of the plans, title report, appraisal report and
basis for Just Compensation.
6.03.04.00 Initiation of Negotiations
The term “initiation of negotiations” relates to the date on which the Commission presents the
property owner, or their designated representative, a written offer for purchase of the property
or rights to be acquired. When non-resident owners are involved who cannot be contacted in
person, initiation of negotiations for the property shall be the date such owner or his
designated representative received the first communication by mail or telephone from the
Commission in which a monetary offer to purchase is made. Certified mail with return receipt
requested must be used when the above contact is made by mail to establish and document
the date that written offer is received by the property owner or by their representative.
Should several individuals own fee interest in the property, delivery of the offer letter to one of
the owners is sufficient to establish the date of initiation of negotiations, however, all owners
are to be provided with all relevant offer items.
6.03.05.00 Prompt Offer of Just Compensation
All offers of Just Compensation shall be promptly presented to property owners or their
designated representatives. The Right of Way Department should determine the appropriate
timing for delivery of offers within the scope of good negotiating practices. If offers cannot be
made within six months of the completion of the appraisal, the Right of Way Manager should
be consulted as to whether or not an updated appraisal is appropriate.
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6.03.06.00 Offer Letter
A written offer will be made to the owner or owners of record to acquire the property for the
full amount established. The offer may be conditioned upon the Commission’s ratification of
the offer by execution of a contract.
As part of the written offer, the property owner will be informed of their right to secure an
appraisal and that the Commission will reimburse the cost of such appraisal report up to $5,000
(Code of Civil Procedure Section 1263.025).
The offer letter should also advise the property owner of the right to leaseback the property for
one year at fair market rent unless the Commission states in writing that the use of the
property is scheduled to begin within two years of acquisition (Code of Civil Procedure
1263.615)
6.03.07.00 Tenant Interests
In some cases, tenants on the property may have interests in the real property for which the
offer is being made. The following are guidelines on drafting the offer for when tenants may
have an interest:
• Fee Owner Offer. An offer letter is to be delivered to the fee owner or a designated
representative. However, the real property interests and amounts included in the offer
may vary dependent on tenant ownership of the improvements.
• Tenant Offer. Tenants who have the right or obligation to remove real estate property
improvements which contribute to the real estate value, as determined in the appraisal
process, have a compensable interest in those improvements. Compensation may
include the contributory fair market value for the improvement being acquired or other
value for removal purposes.
When a separate amount of Just Compensation is approved for an improvement owned
by a party other than the owner of the land, such as a tenant, the offer to the tenant will
be conditioned upon the tenant obtaining execution of the necessary disclaimer (release
of structures or leasehold) from the owner of the land. Payment for such improvements
shall not be made unless the owner of the land disclaims all interest in the tenant
improvement. The owner of the land may disclaim his interest in such improvement by
executing a deed of conveyance of right, title and interest, a quitclaim or a disclaimer.
Tenants are afforded the same rights and protection as fee owners. Should a tenant
reject the offer made for the improvement, it will be necessary to condemn all interest
in the property including the fee ownership.
• Combined Fee and Tenant Offer Letter for Condemnation Purposes. Immediately prior
to condemnation proceedings for a parcel where tenant-owned structures are involved,
an offer letter will be presented to all fee owners of record or their designated
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representative. The offer will be the total of the amount of Just Compensation for the
fee and tenant.
6.03.08.00 Offer Package
Along with the offer letter, each owner or representative will be provided with the following:
• California Government Code Section 7267.2 (b) requires the property owner to be
provided a summary of the basis for the amount it established as Just Compensation.
However, the Commission will provide a full copy of the appraisal with each offer which
includes at a minimum:
-The date of valuation, highest and best use, and applicable zoning of property.
-The principal transactions, reproduction or replacement cost analysis, or
capitalization analysis, supporting the determination of value.
-Where appropriate, the Just Compensation for the real property acquired and
for damages to remaining real property shall be separately stated and shall
include the calculations and narrative explanation supporting the compensation,
including any offsetting benefits.
• Informational pamphlet detailing the process of eminent domain and the property
owner's rights under the Eminent Domain Law (Gov’t Code Section 7267.2(a)(2)
• Conveyance documents
• Purchase and Sale Agreement
• Summary of rights under Title VI
• Project information
6.03.09.00 Improvements Acquired or Damaged
All of the improvements within the right of way are generally acquired.
• Interest in Improvements Acquired. An equal interest shall be acquired in all buildings,
structures or other improvements determined to be a part of the real property when
such improvements are to be removed from the land acquired for right of way
purposes.
• Improvements Located Partially within the Right of Way. Improvements located
partially within the right of way, which are designated for removal shall be totally
removed, unless the owner opts to cut it at the right of way line.
The decision to allow an owner to retain and cut an improvement at the right of way
line must be made during negotiations. In making the decision, the owner is to
understand that the Commission will have to re-evaluate its offer through the appraisal
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process. If a revised offer is unacceptable to the owner, the original offer and plan for
total removal of the improvement will apply and if necessary condemned as originally
designed.
• Improvements Located Outside the Right of Way. Owners will be compensated for any
loss in fair market value of improvements that are not required to be removed but are
adversely affected as a result of the acquisition, as determined by the appraisal.
6.03.10.00 Owner Retention of Improvements
Whenever structural improvements are partially or totally within the required right of way, the
improvements are generally acquired. However, there may be occasions where it more
prudent to relocate the improvement. Relocation, as referred to in this subsection, is an
acquisition concept where improvements are moved from the required property to a
replacement, substitute or remainder property. Relocation of improvements at the
Commission’s cost is only allowed if the Commission determines this action is in the best
interest of the public and the cost to relocate the improvements is consistent with current
federal regulations.
The determination to relocate improvements at the Commission’s cost must be based on
economic feasibility. If the owner chooses to relocate the improvement and moving cost is to
be made directly to the owner, the amount will be based on the best and most reasonably
competitive moving bids obtainable from qualified contractors. A minimum of two (2) bids is
required, if obtainable.
If the Commission determines that relocation of the improvement is not cost effective or in the
best interest of the public, the Commission may elect to allow the owner to relocate the
improvement at their own cost. If the owner chooses to relocate the improvement at their
own cost, the Commission will be relieved of any responsibility for their removal and clearing of
the site. The owner of the improvements assumes the entire obligation of improvement
removal and site clearance.
The decision to allow an owner to retain an improvement must be made during negotiations. In
making the decision, the owner is to understand that the Commission may re-evaluate its offer
through the appraisal process. If a revised offer is unacceptable to the owner, the original offer
and plan for acquisition of the improvement will apply and if necessary condemned as originally
designed.
Improvements pertaining to the realty, which an owner has severed from the real estate prior
to a Purchase and Sale Agreement, are personal property and handled under the Relocation
Assistance Program.
When acquiring motels, hotels or furnished apartments, it may be necessary to acquire the
furnishings to prevent the eviction of tenants who would be unable to continue to occupy the
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premises if the furniture is retained and removed by the fee owner. The appraisal of these
types of properties will contain an inventory and estimated market value of the furnishings.
Removal time of improvements should normally be completed in a sixty to ninety (60-90) day
period. The Purchase and Sale Agreement shall specify a date by which the improvements are
to be removed and provide for clearance of the site.
6.03.11.00 Uneconomic Remnants
If the Commission is acquiring a portion of the property and the acquisition would leave the
remaining portion in such a shape or condition as to constitute an uneconomic remnant, the
Commission shall offer to acquire the entire property if the owner so desires.
• Definition of Uneconomic Remnant. “A parcel of real property in which the owner is left
with an interest after the partial acquisition of the owner’s property, and which the
Agency has determined has little or no value or utility to the owner.” (49 CFR 24.2 (27))
• Offer to Purchase Uneconomic Remnants. An offer to purchase each uneconomic
remnant shall be made to the owner simultaneously with the offer of Just
Compensation for the acquisition of the right of way, if the value was established in the
appraisal. Situations revealed during negotiations or administrative decision to consider
all or part of remainders as uneconomic remnants, may necessitate a revised offer
reflecting the value of the uneconomic remnant.
Multiple uneconomic remnants shall be individually identified and individual values
must be set out in the offer letter.
6.03.12.00 Leasehold Bonus Value
If a bonus value is shown in the appraisal, the Acquisition Agent is not to offer it to the lessee.
Ultimately, the lessor and the lessee will either agree as to its existence value or the court will
decide. The bonus value may be suggested to the lessor that because of the terms of the lease,
the lessee’s interest may be more than a compensable interest in the improvements.
6.03.13.00 Condemnation Clause
A lease may contain what is commonly referred to as a “condemnation clause”. This clause
usually provides that in the event the property is acquired under the actual or potential
exercise of eminent domain, the lease shall terminate, lessee will pay pro-rated rent to the date
of vesting or possession by condemnor and lessee has no claim to the compensation paid to the
lessor by the condemnor. In partial acquisition, the lease may provide the lessee with the
option to terminate the lease or continue in occupancy with a proportionate reduction in rent.
Legal counsel should be consulted interpreting this type of lease provision.
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6.03.14.00 Access Rights
In cases involving acquisition of access rights only, relinquishments or subordinations are to be
secured from all parties whose interest would be detrimental to the achievement of access
control. Ordinarily, these include trustees and beneficiaries under deeds of trust, mortgages,
lessees, holders of liens, the foreclosure of which would either nullify or jeopardize the rights
being acquired by the Commission and holders of easements or rights of way of any kind whose
ability to utilize and enjoy them would be materially diminished or damaged by the
Commission’s acquisition of access rights to the subject property.
6.03.15.00 Construction Obligations
In some cases the Commission is required to do certain work on grantor’s remaining property
(as part of the consideration for acquisition). This work can range from construction of fences,
irrigation facilities, re-paving driveways to replacement of structures. The extent of
construction should be completely described in the Purchase and Sale Agreement and/or
Administrative Settlement.
6.03.16.00 Exchanges and Abandonments
Excess property may be used in exchange for other property required for a project. Exchanges
of land in right of way transactions should be limited to those cases where the excess real
property is contiguous to the remaining property owned by the grantor of the property being
acquired. Non-contiguous exchanges may be granted under certain circumstances.
Excess real property or an interest therein, proposed for exchange shall be appraised. This
requirement does not apply to parcels acquired specifically as substitute parcels for public
utilities, government-owned land or railroad.
6.03.17.00 Negotiator’s Report and Contact Log (Parcel Diary)
A Negotiator’s report and contact log shall be completed and signed by the Negotiator upon
termination or completion of negotiations for each parcel. A log of all contacts with the owner
or representative shall be completed. The information for each contact should include the date
and place of each contact, parties contacted, offers, counteroffers, issues raised by the owner,
reasons settlement could not be reached, and any other pertinent data.
When negotiations are unsuccessful, and the Negotiator considers further attempts to
negotiate to be futile, recommendations for action should be recorded.
6.03.18.00 Negotiating with an Attorney or Designated Representative
Unless otherwise authorized by the property owner, all acquisition discussions shall be with the
owner. When an attorney has been retained by the property owner, acquisition discussions will
generally be with the attorney, unless otherwise authorized in writing by the attorney. In such
cases, the Commission may likewise be represented by its legal counsel during negotiations and
meetings. If the property owner employs someone as his representative, the extent of the
authority of the representative should be in writing, signed by the owner.
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6.04.00.00 EARLY AND ADVANCED ACQUISITIONS
Federal regulations allow federal funds to be used for right of way acquisition prior to NEPA
completion for transportation projects provided that certain findings are made, which include
the following:
• A parcel or a limited number of parcels is involved.
• It is within the limits of a proposed corridor.
• The acquisition will not limit the evaluation of alternatives, including shifts in alignment
for planned construction projects, which may be required in the NEPA process.
• No project development will proceed until the NEPA process has been completed.
• Threat of condemnation will not be utilized.
Proper documentation shall be submitted to show that the acquisition meets the above criteria.
A major consideration in making a decision on advance acquisition is the effect on federal
funding for the parcel and the project as a whole. It is important to keep in mind that if federal
regulations (40 CFR Part 24) are not followed in the advance acquisition of a parcel, the FHWA
or FTA, as the case may be, may deny federal funding for the whole project or, if it is
determined that the advance acquisition of a parcel influenced the environmental assessment
of the project, the cost to acquire the parcel may not become eligible for use as the credit
towards the agency’s share of a federal-aid project. In the latter instance, the project’s
application for environmental clearance under NEPA may also be denied.
The Commission will not consider the following types of parcels for early or advanced
acquisition:
• Properties with historic structures
• Archaeological properties
• Section 4(f) properties (publicly owned park and recreation areas, and wildlife and
waterfowl refuge)
• Properties contaminated with hazardous waste
Early and advanced acquisitions are generally approved only after the acquiring agency has
given official notice to the public that it has selected a particular location for the project
alignment, or a public hearing has been held, or an opportunity for such hearing has been
afforded, except when “core parcels” are to be acquired in advance of environmental
clearance. “Core” parcels are full parcel acquisitions that are required for every alternative
under consideration. Properties not considered “core parcels” may be acquired in exceptional
cases as determined by the Right of Way Manager in consultation with the federal funding
agency.
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6.04.01.00 Early Acquisition
The Commission may initiate acquisition of real property at any time it has the legal authority
to do so based on program or project considerations, if the above conditions are met.
Early acquisition costs are not eligible for Federal-aid reimbursement. However, such costs may
become eligible for use as a credit towards the Commission’s share of a Federal-aid project
6.04.02.00 Hardship Acquisition
Hardship acquisition is early acquisition of property by the agency at the property owner’s
request to alleviate particular hardship to the owner, in contrast to others, because of an
inability to sell his property. This is justified when the property owner can document on the
basis of health, safety or financial reasons that remaining in the property poses an undue
hardship compared to others. Federal approval must be obtained prior to proceeding with a
hardship acquisition in order to be eligible for reimbursement.
6.04.03.00 Protective Acquisition
Protective acquisition is done to prevent imminent development of a parcel, which is needed
for a proposed transportation corridor or site. Documentation must clearly demonstrate that
development of the land would preclude future transportation use and that such development
is imminent. Advance acquisition is not permitted for the sole purpose of reducing the cost of
property for a proposed project. Federal approval must be obtained prior to proceeding with a
hardship acquisition in order to be eligible for reimbursement.
6.05.00.00 ACQUISITIONS WITH SPECIALTY CONSIDERATIONS
6.05.01.00 Donations and Dedications
6.05.01.01 Donations. Donation is the voluntary conveyance of property without
compensation, for the improvement of a public project. Donations must be
voluntary and owners must be advised of their benefits under the State and
Federal Uniform Relocation Act and of their right to compensation, relocation
assistance benefits and their right to receive an appraisal report of the market
value of their real property to be donated. The property owner should be
advised of the Commission’s policy of accepting donations and the offer to
donate should not in any way result from an act of coercion. Donations may be
made at any time during the development of a prospective project.
Every donation must have a detailed financial analysis of the actual and potential
costs. Project management staff should be careful in accepting donation of a
contaminated property where the clean-up cost exceeds the value of the
property. Relocation benefits and loss of business goodwill should likewise be
considered.
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In order for the Commission to claim the value of the donated property as a
credit against its matching share of projects costs (federal and state assisted
projects), certain conditions must be met:
• The value of the donated property must be determined through an appraisal for
the purposes of calculating a credit to the Commission’s matching funds of the
project costs.
• Environmental requirements must be met (NEPA process).
• Environmental assessment (Phase I and II) must be conducted on the property.
Any document executed to effect donation prior to approval of the
environmental clearance of the project shall clearly state:
• All alternatives to an alignment will be studied and considered. The acceptance
of the donated property did not influence the environmental assessment of a
project including the decision about the need to construct the project or the
selection of a specific location for the project. In other words, the Commission
must not be influenced by the donation of the property in its decision on which
alternative to approve.
• Any property acquired by gift or donation for projects covered by the Federal
Highway Act, shall be re-vested to the grantor or successors, if such property is
not needed for the alignment chosen after public hearings and if not required
seven years after completion of the environmental document.
• Donations will not be accepted until a hazardous waste assessment has been
completed.
The Commission may accept a property owner’s offer to donate or a portion
thereof in exchange for construction features or services rendered that will
benefit the property owner. However, for the purposes of crediting the value of
the donation to the Commission’s share of project costs, such donation is limited
to the fair market value of the property donated less the value of the
construction features or services received by the Commission.
6.05.01.02 Dedication. Dedication is the setting aside of property for public use without
compensation as a condition prior to or in exchange for any government or
Commission action that will enhance the value of or development potential of
property. The property owner must initiate the request for dedication and
dedications can be accepted throughout the project development process.
The Commission may accept a parcel of land that a developer of real estate has
dedicated or proposes to dedicate for street purposes in developing a
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subdivision. Land obtained in this manner may be incorporated into a federally-
assisted project without jeopardizing participation in other project costs.
Prior to acceptance by the Commission, the property to be dedicated shall be
subject to a hazardous waste assessment and a review of the condition of title.
Dedication must be accepted by the Commission formally with an acceptance
document.
6.05.02.00 Outdoor Advertising Structures and On Premise Advertising Signs
Outdoor advertising structures are defined as all signs, billboards, drawings or paintings which
advertise activities conducted elsewhere or services and/or products provided other than at the
subject property. Whereas on premise signs advertise activities conducted on the premises or
services and/or products provided on the subject property.
6.05.02.01 Outdoor advertising structures. The outdoor advertising company must have a
written or oral agreement with the owner of lessee of the real property. The
agreement must be in effect and authorize the structure to remain placed for a
period of time beyond the date of acquisition. The owner of the structure may
be entitled to compensation for loss of business goodwill, in addition to the
value of the signboard improvement.
The Commission should determine whether relocation of the sign is feasible and,
if so, whether the cost to do so would be less than the cost of acquiring the
improvement and any related goodwill. Compensation for the sign may be
based on a number of approaches, including a fixture and equipment appraisal, a
goodwill appraisal, the State schedule for Poster Panel Removal (7-EX-14) or the
cost of relocating the sign to a replacement location. However, prior to any
condemnation action, an appraisal must be performed for the sign structure
improvement.
Section 5403, Business and Professions Code and Section 721, Streets and
Highways Code, regulate outdoor advertising structures on highway right of way.
Sections 5405, 5406 and 5408, Business and Professions Code, regulate
advertising structures within 500 feet of any highway, included in the interstate
and primary highway systems. Removal or relocation of outdoor advertising
company structures from right of way for interstate or primary highways to a
location outside the area being acquired shall conform to the requirements of
the above code sections.
If the structure is fully conforming to state and local law and would create no
problems if allowed to remain in place until start of construction, then the site
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for the structure can be rented to the company without loss of its right of
compensation. Rental rates will be determined as described in Chapter 8.
If the structure is not fully conforming and/or its removal is imminent, no rental
will be permitted and the contract should provide for immediate removal of the
structure.
A quitclaim deed or contract will be obtained from the company to release the
rights to the sign.
Existing structures may remain if they do not conflict with the use by the
Commission.
6.05.02.02 On Premise Signs. In partial acquisitions, it is the policy of the Commission to
treat all on premise signs including trademark and logo signs as personal
property under the Relocation Assistance Program. The exception would involve
a situation in which there is insufficient land on which to relocate the sign. In
these circumstances, the sign will be valued and acquired as real estate. No on
premise signs (except enter and exit signs) will be allowed to remain on the right
of way.
6.05.02.03 Signboards on Williamson Act Agricultural Preserves. Land placed in an
agricultural preserve contract under the Williamson Act (Government Code
sections 51200-51295) is limited to agricultural uses. Other uses are prohibited
by the terms of the contract. If the property being acquired has an outdoor
advertising structure located in the acquisition area, the compensability status of
the structure will have been determined prior to the commencement of
appraisal.
6.05.03.00 Hazardous Waste
The Commission must not acquire property contaminated with hazardous waste without
adequate prior investigation and property contractual and valuation safeguards. In order to
avoid delay in a project or acquiring property with possible contamination, investigation to
determine clean-up costs must be made as soon as possible.
If hazardous waste is suspected or discovered during the acquisition process, the Right of Way
Department should immediately notify the Project Manager, in writing, and hire a consultant to
perform an Initial Site Assessment.
The Project Manager may advise the Right of Way Department to proceed with the acquisition
because it is in the best interest of the project and the potential hazardous waste
contamination risks and costs are low, or the problem can be handled with engineering
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methods during construction. The decision to acquire is made by the Project Manager and must
be fully documented.
If further investigation is necessary, the Acquisition Agent will contact the property owner to
advise of the process being pursued and to obtain Right of Entry Permits.
When testing is complete and cleanup costs are known, the appraisal must reflect the effect
contamination and required cleanup has on market value.
Settlements, whenever possible, are to be based on cleanup prior to acquisition. Settlements
made where cleanup occurs after acquisition are to be based on the original appraisal
contingent upon cleanup, or a revised appraisal that includes the effects of hazardous waste
and clean-up costs.
If settlement is reached based on the Commission doing the cleanup, the amount of the
estimated cleanup shall be withheld in escrow and the appropriate provision will be included in
the Purchase and Sale Agreement.
6.05.04.00 Mobile Homes
Mobile homes which cannot be moved from their present locations may be purchased.
The Acquisition Agent will be responsible at the appraisal stage for determining if a mobile
home should be purchased. The reasons underlying this decision will be communicated by the
Acquisition Agent in writing to the Right of Way Manager, which will become part of the
appraisal.
Mobile homes are generally personal property, rather than realty, unless the owner has
converted the mobile home to real property. This should be verified prior to the appraisal. The
size of the mobile or manufactured home determines whether it is registered with the
Department of Housing and Community Development (HCD) or the Department of Motor
Vehicles (DMV) Homes with dimensions of 40 feet long or 8 ½ feet wide or more are registered
with the HCD and homes under this size are registered with the DMV. Once it has been
determined where the mobile home has been registered the transfer of title is handled through
the appropriate agency, HCD or DMV. HCD has multiple forms for use in handling the transfer.
To convey title to a mobile home, the owner’s signature will be obtained on the following when
applicable:
• Purchase and Sale Agreement
• Notice of Transfer
• Bill of Sale
• Authorization for Payoff (if financed)
• Power of Attorney (if needed)
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• Certificate of Title
• Quitclaim deed (if tenant occupied)
The owner should have the Certificate of Title that will reflect the legal and registered owner. If
not available a duplicate Certification can be obtained.
All fees and charges required by the HCD in connection with the transfer of title to the mobile
unit to the Commission, except liens, encumbrances, assessments, taxes delinquent registration
or license fees, shall be paid by the Commission.
6.05.05.00 Federal and State Lands
Interests in land owned by federal and state agencies are secured under appropriate federal or
state statutes which vary based on the agency that owns the land. Interests in federal and state
lands can be obtained through a permit, easement, grant or patent. Acquisition of interests in
federal or state lands should be initiated early as the process can be very lengthy.
6.05.06.00 Indian Lands
The Bureau of Indian Affairs approves transactions involving Indian lands. Indian lands are held
in trust by the federal government as either “tribal land” or “allotted land”. Tribal lands are
lands within the boundaries of an Indian reservation that are held in trust by the federal
government for the Indian tribe as a community. Allotted land is land within a reservation,
which is apportioned and distributed in severalty to tribe members. Title to allotted land is held
in trust by the federal government for individual Indians.
The Bureau of Indian Affairs should be consulted for the appropriate procedure for acquisition.
6.05.07.00 Railroads
The clearance of projects that involve railroads consists of both the acquisition of railroad
property rights and the agreement with the railroad for physical construction of the project.
Either of these functions will involve federal and state agencies, such as, Interstate Commerce
Commission (ICC) and the State of California Public Utilities Commission (PUC). These
properties should be addressed early in the acquisition process to ensure sufficient time for
negotiations with the railroad, as well as approval by the appropriate commission.
6.05.08.00 Mining Claims
An unpatented mining claim establishes an interest in land, which will continue in existence
until eliminated, whether by an appropriate conveying document or by legal process before a
court of competent jurisdiction.
Every reasonable effort shall be made to obtain quitclaim deeds from persons holding mining
claims on the land to be acquired even though the claim may appear to be abandoned. If
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clearance of the claim cannot be obtained by Purchase and Sale Agreement and quitclaim deed,
then condemnation shall be instituted.
If the owner cannot be located after a diligent search, a statement of facts will be noted in the
acquisition file and a recommendation may be made to acquire title subject to this outstanding
interest. Such recommendation must be approved by legal counsel.
6.05.09.00 Water Wells
The replacement of an existing water well can be done through the appraisal or by the
Commission contracting for the drilling of a replacement well. If the Commission will be
contracting for the replacement of the well, copies of all the standard tests on both the existing
well and new well should be kept in the parcel file. The new well should produce the same or
better quality and quantity of water compared to the old well.
6.06.00.00 TITLE CLEARANCE
6.06.01.00 Clearance of Unrecorded Interests
Recorded interests will be addressed through a preliminary title report as outlined in Chapter 3.
However, there are matters that affect title which do not appear of record. It is the
responsibility of the Acquisition Agent to protect the Commission against loss due to any
matters affecting title, which do not appear of record. These matters may be discovered
through property inspection during negotiations. Some items which inspection of the property
may disclose include the following:
• Parties in possession under an unrecorded deed or contract of purchase
• Community driveways, pole lines, pipelines, irrigation ditches, or roadways indicating
easements or rights of way, which do not show in the title report
• Streams, lakes, rivers or ocean which may affect boundaries.
• Overlapping or encroaching improvements
• Violations of restrictions or zoning ordinances
The Purchase and Sale Agreement or an amendment thereto shall specifically obligate the
property owner to eliminate such interest at owner’s sole cost and expense prior to acquisition.
6.06.02.00 Presumption of Interest and Right to Cancel
A lessee or tenant in possession is to be presumed to have some interest in the property unless
the contrary is established.
The Commission shall not attempt to use any lease cancellation clause to acquire
improvements at less than their salvage value or contributory value, whichever is greater.
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It may be appropriate for a tenant to sign a quitclaim deed waiving their interest in the
property.
6.06.03.00 Indemnification Clause
Whenever the Commission is acquiring title subject to exceptions of a questionable nature, an
appropriate indemnification clause is to be approved by the Commission’s legal counsel as to
form and substance.
6.06.04.00 Easements
All easements are to be considered as to both the present and future effect on property being
acquired. The location of the easement in relation to the part acquired is to be determined
prior to preparation of the Purchase and Sale Agreement. If an easement constitutes a present
or future adverse interest in the part acquired, it should be eliminated by appropriate
instrument prior to close of escrow, if possible. Where the nature of the easement does not
warrant the cost in time and effort to eliminate, or is not in conflict with the acquisition, it may
be acquired “subject to” or through an indemnification clause.
• Gross or Appurtenant Easements. All gross or appurtenant easements in favor of third
parties for personal or business use, such as driveways, roads or utilities should be
cleared prior to scheduling and certification of the project for construction. This
clearance should be done concurrently with the fee acquisition.
Interests not cleared prior to the close of escrow may appear as an exception in the
Purchase and Sale Agreement since they will also appear as exceptions in the title
policy.
• Blanket Easements. The interest of easement holders in so-called “blanket” or
“floating” easements should be cleared if the choice of location has been exercised. An
example is an easement affecting a whole subdivision. Such easements affect title to the
entire property and will be shown as encumbrances in title policies unless eliminated by
property conveyance.
• Obsolete Easements. Easements or rights that are discovered by either observation or
inquiry to be obsolete, abandoned and extinct, and has no present or future adverse
effect are to be listed in the Purchase and Sale Agreement as such.
• Utility Easements. Public or private utility easements may have a facility (overhead,
surface or underground) located on the property. Clearance and elimination of
private/service connection easements from the right of way being acquired will be the
responsibility of the Acquisition Agent. This is usually done by quitclaim deed with an
obligation in the Purchase and Sale Agreement to secure a replacement easement, if
necessary. Relocation of a private facility may be handled by or with assistance from the
Relocation Agent or Utility Coordinator.
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If the easement is public (easement in gross) and no facility exists, the Acquisition Agent
in consultation with the Project Manager, must determine whether to take title subject
to the easement. The utility company may have plans for the future facility so it is
incumbent upon the Acquisition Agent to negotiate an agreement with the utility
company recognizing such future use.
The Acquisition Agent and Utility Coordinator will coordinate to arrange for relocation
of all facilities installed in public utility easements and to acquire substitute easements,
as appropriate. The substitute easement will be acquired either by the utility company
or by the Commission. If acquired by the Commission, the location shall be acceptable
to the utility company. This replacement area is subject to the same controls and
clearances that apply to regular rights of way, including hazardous waste clearances.
Acquisition of right of way from a utility company involves a variety of approaches, i.e.,
fee or easement, vacant site or corridor, improved site or corridor, replacement right of
way. The Acquisition Agent should be thoroughly knowledgeable with the procedures
involved in acquiring right of way from the utility company.
6.06.05.00 Court Actions, Consent to Dismissal
Title may be acquired subject to the Commission’s pending condemnation action. Elimination of
other court actions is generally required. In all instances involving right of way on which the
Commission has filed condemnation suit, it is imperative that the dismissal clause be included
in the Purchase and Sale Agreement.
6.06.06.00 Clearance of Lessee Interest
The interest of a lessee or other legal occupant, e.g., tenant, is cleared through either a
quitclaim deed granted to the lessor or to the Commission or through the eminent domain
process. Leases that are in effect must either be eliminated or assigned to the Commission. See
further discussion of leasehold interests in section above.
6.07.00.00 LOSS OF BUSINESS GOODWILL
State law provides that in certain cases, an owner of a business may be compensated for the
loss of goodwill. The law requires that the owner of a business conducted on the property
acquired, or on the remainder if such property is part of a larger parcel, shall be compensated
for loss of goodwill if the owner proves the following:
• The loss is caused by the acquiring of the property or the injury to the remaining
property.
• 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.
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• Compensation for the loss will not be included in payment under Section 7262 of the
Government Code (Relocation Assistance Program).
• Compensation for the loss will not be duplicated in the compensation otherwise
awarded to owner.
For purposes of this subsection, “goodwill” consists of the benefits that accrue to a business as
a result of its location, reputation for dependability, skill or quality and any other circumstances
resulting in probable retention of old or acquisition of new patronage.
The burden of proving that the loss cannot be prevented by relocation or other efforts by the
business owner to mitigate, rests on the business owner. “Business” as used in this subsection
is defined as follows:
• A commercial or mercantile activity engaged in as a mean of livelihood
• A commercial or sometimes industrial enterprise
• A particular field of endeavor-patronage
The operation of residential, non-transient, rental housing is not considered a business.
However, the operation of housing units where rental is ordinarily billed on a daily basis (e.g.
motels, hotels) is to be considered a business. A farm is not generally considered a business
unless there is an on premise full time, retail, commercial operation involving products grown
or developed in the property. A seasonal fruit stand operation would not be considered as a
business.
An estimate of the loss of goodwill or the evaluation of documentation submitted by the
business owner will be made by the Commission’s appraiser. The results will be used by the
Acquisition Agent to conclude the transaction recognizing any “in-lieu” payments that may have
been or will be made under Relocation Assistance. State law requires that state tax returns of
the business be made available for audit, solely for the purpose of assisting and determining
the amount of compensation to be paid for the loss of goodwill.
If a settlement has been agreed upon with the business owners but the claim for loss is
deferred, the Purchase and Sale Agreement shall note that a claim for loss of business goodwill
must be submitted to the Commission two (2) years from date of the contract. If the business
owner and the Commission cannot reach an agreement on compensation within three (3) years
from date of contract, the Commission shall file a declaratory relief action in superior court
solely for the purpose of determining compensation, if any, for loss of owner’s business
goodwill.
6.08.00.00 MEDIATION
Eminent domain mediation is a process through which a neutral mediator assists the
Commission and a property owner in reaching a settlement agreement that each finds
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acceptable. Mediation can be a cost and time effective way to reach settlement in eminent
domain cases. Mediation can be done by agreement of the Commission and the property
owner or it can be mandated by the court prior to scheduling an eminent domain case for trial.
Legal counsel should be consulted about whether or not to utilize mediation to settle cases.
6.09.00.00 ADMINISTRATIVE AND LEGAL SETTLEMENTS
6.09.01.00 Purpose
Administrative settlements are made for the purpose of concluding negotiations for amounts
considered reasonable, prudent and in the public interest after reasonable efforts to negotiate
agreements for Just Compensation have failed. When federal or state funds pay for or
participate in acquisition costs, a written justification shall be prepared which indicates what
available information (e.g. appraisals, recent court awards, estimated trial costs, development
permit fees or valuation problems) support such a settlement. (See 49 CFR 24.102(i)).
Administrative settlements are not to be used for the purpose of correcting errors or omissions
in an appraisal. Such errors or omissions should be addressed by correcting the appraisal and
making a revised offer.
6.09.02.00 Settlement Authority
The Project Delivery Director is authorized to approve a settlement when the difference
between the approved Just Compensation and the proposed settlement is no more than the
greater of 1) 10% in excess of the offer or 2) $100,000.
A Deputy Executive Director is authorized to approve a settlement when the difference
between the approved Just Compensation and the proposed settlement is no more than the
greater of 1) 15% in excess of the offer or 2) $250,000.
The Executive Director is authorized to approve a settlement when the difference between the
approved Just Compensation and proposed settlement is no more than the greater of 1) 20% in
excess of the offer or 2) $500,000.
When the difference between the approved Just Compensation and the proposed settlement is
in excess of the approval authority of the Executive Director, the proposed settlement must be
approved by the Board of Commissioners.
All administrative settlement forms shall be prepared by the Right of Way Manager or
designated representative stating the justification for the settlement.
6.09.03.00 Legal Settlements
When an eminent domain suit has been filed and an expert witness has been hired, the
Commission may consider making a revised offer based on a higher opinion of value from the
trial appraiser, new information discovered during the eminent domain process, or an
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assessment of a potential adverse trial result. Agreement under these terms will be considered
a legal settlement subject to funding source regulations and policies.
A legal settlement shall be in the form of a legal memorandum prepared and recommended by
the Commission’s legal counsel.
Settlement authority for legal settlements will be the same as administrative settlements (see
above).
6.09.04.00 FTA Concurrence
For FTA projects, administrative settlements in excess of $50,000 or more than the current fair
market value must be submitted to the FTA for advance concurrence before the settlement is
consummated. The Commission must document that reasonable efforts to purchase the
property at the appraised amount have failed and prepare written justification supporting why
the settlement is reasonable, prudent and in the public interest.
6.09.05.00 Record Keeping
The original copy of the administrative and legal settlement forms should be filed in the parcel.
6.10.00.00 EMINENT DOMAIN
6.10.01.00 General
Eminent domain is the inherent power of government to acquire private property for public
use. The owners of such private property shall not be deprived of their property without Just
Compensation as provided for in the United States and California Constitutions.
The power of eminent domain is exercised in accordance with Article I, Section 19 of the
California Constitution, which states:
“Sec. 19. Private Property may be taken or damaged for public use only when just
compensation, ascertained by a jury unless waived, has first been paid to, or into court for, the
owner. The Legislature may provide for possession by the condemnor following
commencement of eminent domain proceedings upon deposit in court and prompt release to
the owner of money determined by the court to be the probable amount of just
compensation.”
6.10.02.00 FTA Concurrence
For FTA projects, FTA concurrence is required before filing for condemnation if the appraised
value exceeds $500,000.
6.10.03.00 Notice of Intent to Adopt Resolution of Necessity
California Code of Civil Procedure (CCP) Section 1245.235 requires that an owner be given
notice of the meeting at which the Board of Commissioners will consider a Resolution of
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Necessity for acquisition of the owner’s property. The Notice of Intent to Adopt Resolution of
Necessity must be mailed to property owners whose property is required. One of the following
must sign the Notice:
• The Executive Director or designee
• The Project Delivery Director
The Notice should be delivered to the owner no less than fifteen (15) days prior to the date of
the meeting at which the Board of Commissioners will consider the request. If the project is on
the State Highway System, the State requires a forty-five (45) day notice.
If for any reason, any information in the Notice or legal description already provided to the
owner ceases to be correct prior to adoption by the Commission, a new Notice should be sent
to the owners concerned.
The Commission shall also give notice to the legislative body of the affected city or within the
unincorporated area of any affected county as required by section 130220.5(c) of the California
Public Utilities Code.
6.10.04.00 Impasse Letter
If an offer to purchase has been rejected and it is determined that further negotiations will not
be productive, the Acquisition Agent shall prepare an Impasse Letter to the property owner.
The purpose of the letter is to confirm and document the rejection of the offer and inform the
property owner of the Commission’s intent to proceed with the condemnation process. The
Impasse Letter will be signed by the Executive Director or designee. After the letter is
transmitted to the owner, the Acquisition Agent shall attempt to continue negotiations towards
reaching a settlement.
6.10.05.00 Grantor’s Request for Appearance
If an owner believes that its property should not be required or that the project should be
realigned to avoid its property, the owner may request an appearance before the Commission
regarding the Resolution of Necessity. This request must be made in writing within fifteen (15)
days from mailing of the Notice by the Commission, however, in practice, the Commission may
choose to grant the request to appear whether the Commission receives a written request or
not. The negotiating process continues and assures that all issues are identified and resolved, if
possible, prior to the Commission meeting.
6.10.06.00 Record of Condemnation Case Status
The Right of Way Department will maintain a record of the status of condemnation cases
commencing with the submittal of the Request for Resolution of Necessity to the Commission.
The record is kept current through the duration of the condemnation action.
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6.10.07.00 Condemnation Suit
Legal counsel shall have full control of the condemnation proceeding and should be afforded
full cooperation by the Right of Way Department, right of way consultants and expert
witnesses.
6.11.00.00 REPORTING OF ACQUISITIONS
6.11.01.00 Commission Policy
It is the policy of the Commission to report the acquisition of real estate or real estate rights to
the Internal Revenue Service (IRS).
6.11.02.00 1099-Misc. Reporting Procedures
6.11.02.01 Transactions Reported. The Commission, through the escrow company acting on
its behalf, is responsible for reporting real estate acquisitions in excess of $599
to the IRS. This reporting includes all acquisitions by either negotiated
settlement or by condemnation. The following must be reported:
• Real estate acquired for Commission use
• Property acquired by purchase or condemnation for right of way or permanent
easement
• Damages to remainders included with the amount paid for the acquisition of a
permanent easement or right of way
• When a jury verdict or a legal settlement results in $600 or more of interest due
the owner
• Lost Rent and Temporary Construction Easements as reportable as rents
6.11.02.02 Transactions Not Reported. The following does not need to be reported:
• Purchases from corporations and governmental agencies
• Transactions where total compensation is less than $600
6.11.02.03 Year of Reporting. Under IRS rules, an acquisition has to be reported in the year
the transaction is closed. For purchases, this is the date the check is received by
the escrow agent or the property owner. For condemned property, it is the date
the probable compensation is deposited in the Condemnation Deposit Fund of
the State Treasury.
6.11.03.00 Taxpayer Identification Numbers
It is required that the Commission (or escrow agent) request a taxpayer identification number
(TIN) from all persons having an interest in the real property to be acquired, at or before the
time of closing. Under IRS rules, any person whose TIN is required must furnish such TIN and
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certify that it is correct. The solicitation must be made in writing to the taxpayer that they are
required to furnish a correct TIN and that they may be subject to civil or criminal penalties for
failing to furnish a correct TIN. Acquisition Agents should solicit TIN information from owners
during negotiations. TIN shall be provided to the Accounting Department prior to any
disbursements.
When dealing with a representative of the owner, it is permissible to request that the
representative obtain the TIN from the taxpayer, however if they fail to supply the information,
a request must be sent to the taxpayer by certified mail.
6.11.04.00 Methods of Reporting to the IRS
• For negotiated settlements, the escrow company is responsible for reporting to the IRS.
• If the property is condemned and a jury verdict or settlement is obtained, it should be
determined if the County Clerk is reporting transactions to the IRS. If not, then the
Accounting Department will report the transaction to the IRS.
• If the property is condemned and the jury verdict or settlement is greater than the
deposit of probable compensation, a correct 1099-S should be sent to the IRS.
6.12.00.00 PROJECT COMPLETION
6.12.01.00 Filing of Recorded Documents and Policy of Title Insurance
Upon completion of acquisition, all original recorded or unrecorded deeds, Final Orders of
Condemnation, appraisal reports, escrow closing statement, survey/appraisal plats, legal
description, the policy of title insurance, Negotiator’s log (parcel diary) and Certificate of
Completion are to be filed in the original parcel file kept in the Right of Way Department.
Any changes in the condition of title that occurs after the date of issuance of the title policy
shall be noted in the file, as well as Joint Use and Consent to Common Use Agreements, Joint
Development Agreements, Abandonments and Special Use Permits.
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7.00.00.00 RELOCATION ASSISTANCE
7.01.00.00 GENERAL POLICIES AND INFORMATION
7.01.01.00 Policy
The Relocation Assistance Program, as outlined in this chapter of the Right of Way Policies and
Procedures Manual, is applicable to all properties acquired by the Commission regardless of
whether the project receives federal or state funds.
The only exception relates to voluntary sales where the owner-occupant of a property
voluntarily sells their property to the Commission after being informed in writing that if a
mutually satisfactory agreement cannot be reached, the property will not be acquired. Any
tenants displaced as a direct result of such voluntary sale will be entitled to relocation benefits.
7.01.02.00 Purpose
The purpose of this chapter is to promulgate in accordance with the following objectives:
• To provide uniform, fair and equitable treatment of persons who are displaced, to
ensure relocation assistance is provided to displaced persons to lessen the emotional
and financial impact of displacement, to ensure that no individual or family is displaced
unless decent, safe and sanitary housing is available within the displaced person's
financial means, to help improve the housing conditions of displaced persons living in
substandard housing and to encourage and expedite acquisition by agreement and
without coercion
• To ensure that persons displaced as a result of Commission projects are treated fairly,
consistently, and equitably so that such persons will not suffer disproportionate injuries
as a result of projects designed for the benefit of the public as a whole
• To ensure that Commission employees and consultants implement government
regulations in a manner that is efficient and cost effective
7.01.03.00 Availability of the Relocation Program
The Relocation Assistance and Payment Program is available to eligible individuals, families,
businesses, farm operations and non-profit organizations which are wholly or partially displaced
by Commission projects. Relocation advisory services (not payments) are also available to any
person occupying property immediately adjacent to property acquired by the Commission
when the Commission determines such person is caused substantial economic injury because of
the acquisition.
7.01.04.00 Applicable Law and Regulations
Federally Funded or Assisted Projects. When the Commission projects are federally funded or
federally assisted, the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 (42 U.S.C. 4601, et seq.), 49 Part 24, as further amended by the Surface Transportation
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and Uniform Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17, the Final Rule dated
January 4, 2005, and Section 1521 of the Moving Ahead for Progress in the 21st Century Act
(MAP-21) apply.
State and Locally Funded Projects. When the Commission’s projects are state or locally funded,
California Government Code Sections 7260-7266 apply.
Conflict. In case of conflicts between federal and state regulations and the provisions of this
manual, the regulations and policies that provide greater benefits to the displacee will be
followed by the Commission.
7.01.05.00 General Eligibility Requirements
To be eligible for relocation benefits, displacees must legally occupy the property that is
scheduled for acquisition by the Commission at the time negotiations are initiated for the
subject property and also meet minimum ownership and/or occupancy time requirements and
other specific requirements as discussed in this chapter for each of the various relocation
benefits available. Displacees who vacate their parcel prior to the initiation of negotiations
shall also be eligible (if they meet other requirements) if they were in legal occupancy at the
time the Commission notified them, in writing, of its intention to acquire the property. Such
notices shall not be given as routine procedure or without prior concurrence from the Right of
Way Manager.
The preceding General Eligibility Requirements also apply to moving cost payments except that
displacees who move to and legally occupy properties being acquired by the Commission after
the initiation of negotiations can qualify for moving cost payments and advisory services, but
normally for no other type of relocation payment, provided they are still in occupancy of the
subject property at the time it is acquired by the Commission.
7.01.06.00 Cancellation of Eligibility as Displaced Person
Eligibility as a “displaced person” can be cancelled and relocation payment offers withdrawn,
normally due to a change in construction plans which eliminates the need for a previously
designated right of way parcel, if the person is notified in writing that he will not be displaced
as originally planned. The written notice must advise that the Commission will reimburse the
person’s reasonable expenses incurred to satisfy any binding good faith contractual relocation
obligations entered into after they were originally notified of relocation eligibility. Relocation
eligibility cannot be canceled if the person has moved from the property.
7.01.07.00 Definitions
The following definitions are applicable to this chapter and to the Relocation Assistance
Program in general.
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Acquired. The time the property owner, his agent or representative receives payment from the
Commission for the property and/or rights being purchased; or if condemnation is involved, at
the time of the amount of probable Just Compensation is deposited into the court.
Affordable. Comparable replacement rental units available to displaced or subsequent
occupants with less than ninety (90) days occupancy will be considered “affordable” if the total
of the monthly rent plus utilities does not exceed the total rent and utility costs at the
displacement site. Other circumstances may indicate the affordability, or lack thereof, of any
available replacement dwelling. The Right of Way Manager will approve on a case by case basis
exceptions to the above procedure.
Business. Business, for the purposes of this chapter, is defined as any lawful activity, except
farm operations, conducted primarily for the following:
• For the purchase, sale, lease, and/or rental of personal and/or real property, and for the
manufacture, processing and/or marketing of products, commodities or any other
personal property
• For the sale of services to the public, or outdoor advertising displays, when the display
must be moved as a result of a project
• A non-profit organization that has established its non-profit status under applicable
federal or state law
Comparable Replacement Dwelling. A comparable replacement dwelling is:
• Decent, safe and sanitary (DS&S) as defined in the following subsection
• Functionally equivalent to the displacement dwelling, provides the same utility, is
capable of contributing to a comparable style of living and is adequate in size to
accommodate the occupants. While it need not possess every feature of the
displacement dwelling, the principal features must be present
• In an area that is not subject to unreasonable adverse environmental conditions, is not
generally less desirable than the location of the displaced person’s dwelling with respect
to public utilities and commercial public facilities, and is reasonably accessible to the
person’s place of employment
• On a site that is typical in size for residential development with normal site
improvements including customary landscaping
• Within the financial means of the displaced person. It will automatically be considered
within financial means if the owner is paid a replacement housing payment or the
tenant is paid a rent supplement.
• Currently available to the displaced person on the private market unless the displacee is
receiving assistance under a Government Housing Program before displacement, in
which case, a comparable replacement dwelling may reflect similar governmental
housing assistance. Public housing can be offered to those being displaced from non-
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public housing if they are advised in writing of their right to non-public housing and do
not object.
NOTE: If replacement dwellings meeting the above requirements are not available on
the market, dwellings which exceed those requirements may be treated as comparable
replacement housing.
Contributes Materially. During the two taxable years prior to the taxable year in which
displacement occurs, a business or farm operation had average annual gross receipt of at least
$5,000, or had average annual net earnings of at least $1,000, or contributed at least 33 1/3
percent of the owner’s average annual gross income from all sources.
NOTE: It is permissible, with prior approval from the Right of Way Manager, to use a different
period if it will be more equitable to the displacee (in lieu of using the two prior taxable years).
If the business has not been in operation, or has not been operated by the current owner-
displacee, for the entire two taxable year period, the computation can be based on the actual
period of the owner-displacee’s operation projected to annual rate. The rate would be
computed by determining the total gross receipts, net earnings, or gross income, whichever is
applicable, during the actual period of the owner-displacee’s operation; dividing the figure by
the number of months of operation, and multiplying by 12 to determine the annual average. A
loss for any year should be counted as “0” when averaging, not a negative number.
Conventional Loan. Any loan not guaranteed or directly provided by a governmental agency, or
not guaranteed through private purchase of loan insurance, e.g., mortgage guarantee
insurance, is considered to be a conventional loan.
Date of Acquisition. The date the subject property is acquired by the Commission.
Decent, Safe and Sanitary Dwelling (DS&S). A dwelling which meets applicable housing and
occupancy codes. However, if any of the following standards are not met by an applicable code,
the dwelling shall meet the following standards (unless waived for good causes by the funding
federal agency):
• Be structurally sound, weather tight and in good repair
• Contain a safe electrical wiring system adequate for lighting and other electrical devices
• Contain a heating system capable of sustaining a healthful temperature (of
approximately 70 degrees) for a displaced person, except in those areas where local
climatic conditions do not require such a system
• Be adequate in the size and respect to the number of rooms and area of living space
needed to accommodate the displaced person. There shall be a separate, well lit and
ventilated bedroom that provides privacy to the user and contains a sink, bathtub or
shower stall, and a toilet, all in good working order and properly connected to
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appropriate sources of water and to a sewage drainage system. In the case of a
housekeeping dwelling, there shall be a kitchen area that contains a fully usable sink,
property connected to potable hot and cold water and to a sewage drainage system,
and adequate space and utility service connections for an oven and refrigerator.
• Contain unobstructed egress to safe, open space at ground level.
• Be free of any barriers for a disabled displacee, which would preclude reasonable
ingress, egress or use of the dwelling
Displaced Person (Displacee). Any individual, family, business, farm operation, or non-profit
organization who moves from legally occupied real property (and in federally funded projects,
self certifies legal residence in the United States) or moves personal property from legally
occupied real property, as a direct result of the acquisition of such real property in whole or in
part by the Commission including any person who moved from the real property as a result of
the initiation of negotiations for the property or is issued a notice of intent to acquire.
Displaced Tenants and Owners not Located Within Right of Way Acquisition. Residential
tenants who occupy a portion of a parcel that is affected by a partial acquisition, but who are
not actually located within limits of the acquisition, will normally be eligible for the same
relocation payments they would have been eligible to receive had they been located within the
acquisition if (a) the right of way acquisition causes the remainder which they occupy to be
uninhabitable due to the acquisition of a facility or service that is not replaced, or (b) if they are
located in the remainder of a mobile home park that was so severely damaged and/or reduced
in size by the right of way acquisition that the owner justifiably discontinues the entire mobile
home park operation at the subject site within one year after the Commission takes physical
possession of the portion of the property that was acquired as right of way.
An owner who occupies a remainder that is made uninhabitable due to the acquisition of a
facility or service will not be eligible for relocation payments if (a) his right of way payment
includes damages, in addition to the payment for property and rights acquired from him, which
were specifically computed as being adequate to pay for a cure of the deficiencies which makes
the remainder uninhabitable, and (b) he has the legal right and physical space to accomplish
the cure. Owners who are in a position to control the necessity for their displacement, and who
can reasonably avoid such necessity, cannot qualify for relocation payments by electing not to
provide the cure which they have been paid to accomplish. Condemnation awards and legal
settlements, which are equal to or exceed the approved offer will be considered to include
payment for such cures if the approved offer included such payment. If a condemnation award
or legal settlement is less than the approved offer, the Relocation Agent should recommend a
payment eligibility determination to the Right of Way Manager.
Occupants of remainders which become legally and/or physically landlocked due to a right of
way acquisition are eligible for the same relocation assistance and payments as occupants of
properties which are actually acquired by the Commission, therefore, routine policies and
procedures provided throughout this chapter are applicable under this circumstance.
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Dwelling. The place of permanent or customary residence. It includes a single family house, a
one-family unit in a multi-family building, a unit in a condominium or cooperative housing
project, or any other residential unit, including a mobile home.
Dwelling Site. A land area that is typical in size for similar dwellings located in the same
neighborhood or rural areas.
Family. Two or more individuals living together in a single-family dwelling unit who are related
by blood, adoption, marriage or legal guardianship who live together as a family unit, plus all
other individuals regardless of blood or legal ties who live with and are considered a part of the
family unit, or individuals who live together without an identifiable head of household will be
considered one family for the purpose of administering the relocation program, unless
otherwise determined by the Right of Way Manager.
Farm Operations. Any activity conducted solely or primarily for the production of one or more
agricultural products or commodities, 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’s support.
Initial Occupant. Applies to any person who has been in legal occupancy of the subject real
property for not less than ninety (90) consecutive days prior to the initiation of negotiations for
the acquisition of such property, or is in receipt of a written notice of the Commission’s intent
to acquire the property and moves from the subject property (or moves personal property
therefrom) subsequent to the initiation of negotiations for such real property. Residential
occupants are normally entitled to a relocation housing payment and/or rental assistance
payment, moving costs and advisory services.
Initiation of Negotiations for the Property. Relates to the date on which the Commission or
their designated representative presents the owner of the property a written offer for the
property or rights to be acquired. When non-resident owners are involved who cannot be
contacted in person, initiation of negotiations for the property shall be the date such owner or
his designated representative received the first communication by mail or telephone from the
Commission in which a monetary offer to purchase is made. Certified mail with return receipt
requested must be used when it becomes necessary to contact a property owner or designated
representative by mail.
When property owners are donating right of way, they will not be presented a written offer.
Under this circumstance, the date that they are invited to execute the conveyance deed will be
accepted as the initiation of negotiations for the property.
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When displacees are provided a “Notice of Intent to Acquire” the initiation of negotiations will
be the earlier of the following, as long as it is subsequent to the issuance of the Notice of Intent
to Acquire:
• The date they move from the property
• The date the property owners or their representatives are presented a written offer for
their property
Lawful Business. Any business not prohibited by law. Businesses operating in violation of
zoning ordinances and/or laws, except those legally operating under a “grandfather clause”,
will be considered unlawful. It is possible for a lawful business to be operating illegally due to
improper licensing. Lawful businesses operating with license deficiencies will, if otherwise
qualified, be eligible for fixed moving payments.
Leaseback Agreement. When a replacement site is not available at the close of escrow for the
displacee, an owner or tenant may be allowed to lease back the property based on a monthly
rental rate. A Leaseback Agreement shall be developed by the Commission with legal counsel’s
concurrence, and may be terminated by the Commission at thirty (30) days’ written notice,
provided that the displacee is provided with alternative housing.
Less than Ninety (90) Day Occupants. Persons who are in legal occupancy of a property at the
initiation of negotiations for such property, or at the time they were provided a Notice of Intent
to Acquire, but who had not been in such occupancy for ninety (90) consecutive days prior
thereto, are referred to as “less than ninety (90) day occupants”.
Such persons are normally entitled to reimbursement of moving costs and relocation advisory
assistance but for no other type of relocation payment unless the comparable replacement
housing is not affordable. Under the latter circumstance, the displacee can be paid a relocation
housing payment, either rent supplement or down payment assistance payment, whichever is
applicable, under the Last Resort Housing Program. Payment computation procedures are
explained in the appropriate sections of this chapter.
Non-Profit Organization. An organization that is incorporated under the applicable laws of the
state as a non-profit organization and is exempt from paying federal income taxes under
Section 501 of the Internal Revenue Code.
Notice of Intent to Acquire. Issuance of a Notice of Intent to Acquire informs owner-occupants
that the Commission will be acquiring their property for a public project and that they can
relocate prior to the initiation of negotiations without jeopardizing their relocation benefits
Notices of Intent to Acquire are not available to the owners of businesses, farms and non-profit
organizations. Such notices should not be given to tenants unless they initiate the action and
make a request in writing to the Commission.
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Partial Displacement. Situations when the acquisition does not require the displacement of the
occupant, but does necessitate the removal of items of personal property, which are located
within the new right of way boundaries.
Person. Any individual, family, partnership, company, corporation, organization or association.
Rental Subsidy Payment. The payment available to displaced residential occupants to cover
additional rental costs they will experience in renting comparable replacement housing during
the forty-two (42) month period following their displacement. It is synonymous with the terms
“Rental Differential Payment” and “Rent Supplement”.
Replacement Housing Payment. Payments available to qualified long-term owner-occupants to
assist in the purchase of replacement housing, computed as the difference between the
amount paid to them for their residential property and (1) the amount necessary to purchase
the most nearly comparable DS&S replacement housing available, or (2) the amount actually
paid for a DS&S replacement, whichever is less. A replacement housing payment may also
include a mortgage interest differential payment and an incidental expense payment. It is
synonymous with the term “Purchase Price Differential”.
Replacement Property. The property being purchased or rented by the displacee to replace the
subject property, parcel or dwelling.
Small Business. A business having not more than five hundred (500) employees, working at the
site being acquired or displaced by a program or project, which site is the location of economic
activity.
Subject Property, Subject Parcel, Subject Dwelling, Displacement Property. When the word
“subject” or “displacement property” is used to identify a property, a parcel or a dwelling, it
always relates to the property, parcel or dwelling which is being acquired or affected by the
Commission and is always the property, parcel or dwelling from which a displacee is being
either partially or totally displaced.
Subsequent Occupants. A person who is in occupancy of a right of way parcel at the time it is
acquired by the Commission, but who was not in occupancy of such parcel at the initiation of
negotiations. Subsequent occupants are eligible for relocation advisory assistance and can
normally qualify for moving cost payments, but for no other type of relocation payment unless
the comparable replacement housing is not affordable. Under the latter circumstance, the
displacee can receive a replacement housing payment, either a rent supplement or down
payment assistance payment, whichever is applicable, under the Last Resort Housing Program.
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The Commission will make every effort to minimize subsequent occupants by offering to enter
into a protective rent agreement (this is also known as a rent to hold vacant agreement) with
the owner of the real property at the time of the initiations of negotiations.
Tenant. A person who has the temporary use and legal occupancy of real property owned by
another.
Tenant Displaced to Make Room for Rearrangement of Landowners Business Operation. A
tenant who is forced by his landlord to vacate the remainder of a partial acquisition to make
room for the landlord to rearrange a business operation that was affected by a partial
acquisition will normally be considered a displaced person, and as such will be eligible for the
same relocation assistance and payments that he would have been entitled to receive if he had
been located within the acquisition area. If an owner-occupied residence is involved in this type
of situation, the Right of Way Manager will make a determination of eligibility.
Total Displacement. Complete displacement of a person, family, business, farm operation or
non-profit organization.
Uniform Relocation Act. An abbreviated title for the Federal Uniform Relocation Assistance and
Real Property Acquisition Act of 1970, as amended.
Utility Costs. Expenses for heat, electrical, water, sewer and trash collection.
7.01.08.00 Interest Acquired
The type of interest acquired by the Commission does not affect the eligibility for relocation
assistance payments provided the interest acquired is sufficient to cause the displacement.
7.01.09.00 Ownership Qualifications
7.01.09.01 General Ownership Requirements. An owner is an individual(s) who meets one
of the following criteria:
• Owns, legally or equitably, the fee simple estate, a life estate, a ninety-nine (99)
year lease (regardless of the length of the unexpired term) or other proprietary
interest in property. Holders of long-term leases but less than ninety nine (99)
year leases, shall also be considered owners if the unexpired term including
options for extension after the date of acquisition of the subject parcel, totals
(fifty) 50 years or more.
• Is the contract purchaser of any of the foregoing estate or interests. Displacees
who are in the process of purchasing the property from which they are being
displaced under a contract to purchase which legally binds both parties to an
agreement that calls for the subsequent transfer of title to the displacees, is
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considered qualified if the contract has been in effect for the required ownership
time period.
• Has succeeded to any of the foregoing interest by devise, bequest, inheritance or
operation of law. In the event of acquisition of ownership by any of the
foregoing methods, the tenure of ownership (not occupancy) of the succeeding
owner shall include the tenure of the preceding owner.
• Owns an interest in a cooperative housing project which includes the right to
occupy a dwelling.
• Holds any other interest, including leases with less than fifty (50) years unexpired
term, which in the judgment of the Commission warrants consideration as
ownership.
• The owner, as defined in this subsection, of a residential dwelling who has
owned and occupied the dwelling for at least ninety (90) consecutive days
immediately prior to the initiation of negotiations for the subject dwelling is
more commonly referred to as a “long term owner”.
7.01.09.02 Owner’s Acquisition by Devise, Bequest, Inheritance or Operation of Law.
Displacees who acquire a property that is scheduled for right of way acquisition
by devise, bequest, inheritance or operation of law are considered to have met
the ownership time eligibility requirements (but not necessarily the occupancy
requirements ninety (90) day owner and occupied) if the time they have owned
the property since acquiring it plus the time it was owned by the person or
persons from whom they acquired it totals the required time period.
This policy applies even though the displacees “inherited” the subject property
after the initiation of negotiations for the property. It also applies if the
inheritance occurred after the original owners signed the deed conveying the
subject property to the Commission or after the property was condemned but
the probable Just Compensation has not been deposited and as a consequence,
possession had not passed to the Commission.
7.01.09.03 Part Owners, Partnerships, Estate Members, Subject Right of Way Parcel. If a
dwelling acquired by the Commission is partially owned by those who occupy it
and partially owned by other parties who are not in occupancy, those in
occupancy shall be eligible, if qualified, for relocation payments as owner-
occupants.
Estates are not eligible for replacement housing payments (purchase price
differential, incidental closing costs, increased interest payments, rental subsidy
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payments or down payment assistance) but are entitled, when qualified, to
moving cost payments.
It is not necessary that another party who owned an interest in the subject, but
did not occupy it, also purchase an interest in the replacement. The name of the
other party should not be included as payee on the replacement housing check.
7.01.10.00 Eviction for Cause
Eviction for cause must conform to applicable state and local law. Any person who occupies the
real property and is in lawful occupancy on the date of the initiation of negotiations is
presumed to be entitled to relocation payments and other assistance, unless the Commission
determines the following:
• The person received an eviction notice prior to the initiation of negotiations and as a
result of that notice is later evicted.
• The person is evicted after the initiation of negotiations for serious or repeated violation
of material term(s) of the lease or occupancy agreement.
A person evicted due to failure to move or relocate when instructed or failure to cooperate in
the relocation process does not lose relocation eligibility.
A displaced person cannot be denied relocation benefits if the eviction was undertaken for the
purpose of evading the obligation to make available the relocation benefits the person would
otherwise be entitled to.
7.01.11.00 Incompetent Owner or Occupant
If an owner and/or occupant has been legally declared to be incompetent, the Relocation
Program should be explained to the legal guardian. Guardians will normally have authority to
execute documents for the ward, accept possession notices and handle details related to their
ward’s displacement. If any complications are encountered, provide all facts to the Right of Way
Manager and request specific instructions. The Right of Way Manager should seek assistance
from the legal counsel in handling cases of this nature.
7.01.12.00 Displacee Dies During Displacement Period
7.01.12.01 Displacee Dies Prior to Occupying Replacement Housing. The following
instructions apply when displacees who are eligible for replacement housing
payments (either rental subsidy payments, down payment assistance payments,
or purchase price differential payments) or moving costs die before they actually
occupy a replacement dwelling:
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• If the deceased is the head of a household or the member of a displaced family,
the relocation payment is not affected.
• If the deceased was the only occupant of the unit acquired by the Commission,
the payment would be forfeited as he would never occupy the replacement
dwelling. (Any portion of a relocation housing payment necessary to satisfy the
legal obligation of an estate in connection with the selection of a replacement
dwelling by or on behalf of a deceased person shall be disbursed to the estate).
7.01.12.02 Claims Executed Prior to Displacee’s Death. The unpaid relocation claim of an
eligible deceased displacee that has been signed and executed prior to his death
should be processed for payment in the routine manner. The check should be
forwarded to the administrator of the displacee’s estate together with an
explanation of the relocation payment involved. If an estate has not been
opened and/or an administrator has not been appointed, present the facts to
the Right of Way Manager and ask for specific instructions. The Right of Way
Manager should seek legal advice in handling cases of this nature.
7.01.12.03 Claims Not Executed Prior to Displacee’s Death. If a head of household dies after
qualifying for a relocation payment, but before executing his claim, it is
permissible to accept, process and pay a claim executed by the administrator to
his estate. The check will be delivered to the administrator.
If the head of household dies prior to filing a claim that qualifies for payment and
an estate has not been opened, or an administrator has not been appointed,
present the facts to the Right of Way Manager and request instructions
concerning execution of the claim and delivery of the check.
7.01.13.00 Rest Home and Nursing Home Patients
The term “rest home” as used herein also applies to nursing homes, convalescent homes and
other similar establishments.
In applying the following policy, it will be necessary to determine whether a subject rest home
resident is a temporary or permanent occupant of the rest home.
A temporary resident is one who is in the rest home during an illness, convalescence or illness
recovery period, and is currently maintaining permanent residence elsewhere, which he intends
to re-occupy when physically able to do so.
A permanent resident is one who has made the rest home his permanent place of residence, is
not maintaining a residence elsewhere, and has no plans to leave the rest home at a later date.
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In case of doubt or conflict in determining whether a displacee is a temporary or permanent
resident or a rest home, legal counsel should be consulted.
7.01.13.01 Moving Cost-Rest Home Displaced. When a displaced rest home operation is
moved by its owner and reestablished in a new location, the individual residents
involved (both temporary and permanent) will not be entitled to relocation
payments if the cost of moving them from the existing rest home to the
replacement is borne by the rest home owner. The rest home owner will be
reimbursed for such moving costs as part of the usual business moving cost
payment.
If permanent residents are forced to move to a new location at their own
expense, and are not moved by the rest home owner as part of his business
move, they shall be entitled to residential moving cost payment based either on
actual costs, or on the fixed payment schedule, as the occupant of a furnished
sleeping room.
If temporary residents are forced to move to a new location at their own
expense, they shall be entitled to a moving cost payment which also applies if
the temporary residents return to their original permanent residence instead of
moving to a new rest home facility.
7.01.13.02 Rental Subsidy Payments-Rest Home Displaced. Rental subsidy payments are
not available to temporary rest home residents who maintain permanent and
legal residence elsewhere.
A permanent rest home patron, who is displaced due to the Commission’s
acquisition of the rest home will not be entitled to rental subsidy payment, if the
subject rest home is relocated, remains in operation, and is available to the
resident after is it relocated unless the existing rental fee is actually increased as
a result of the move.
If the displaced rest home does not relocate and does not continue in operation
after displacement, and the permanent resident will be forced to relocate to a
different rest home, they will normally be entitled to a rental subsidy payment
computed as follows:
• Determine the portion of the total monthly rental fee being paid by the
displacee prior to displacement that is chargeable to basic “room rent” which
normally includes utilities. It will be necessary to “carve out” and separate the
basic room rent payment from nursing services, food, and other services paid for
in the overall monthly payment. (Rest home records may establish these figures,
if not, the determination must be made and documented by an appraiser).
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• Locate the most nearly comparable replacement rest home available to the
displacee and determine the portion of the total monthly rental fee charged for
the replacement that is chargeable to basic room rent.
• Compute the rental subsidy payment in the same manner based on the
difference between the “basic room” rental fees charged by the displaced rest
home and the replacement rest home, or on the difference actually paid by the
displacee, whichever is less. To determine if the 30% rule applies (see below),
each case will have to be discussed with the Right of Way Manager individually.
If the payment computation procedure discussed in this subsection creates an
undue hardship on a displacee, the Right of Way Manager should formulate a
solution to alleviate such hardship.
7.01.13.03 Moving Costs-'Rest Home Residents’ Property Acquired by the Commission. If a
residential, business or farm property is acquired by the Commission while its
owner or tenant is residing in a rest home (either temporary or permanent), such
owner or tenant is entitled to applicable moving cost payment and may be
entitled to other relocation benefits.
7.01.13.04 Residential Relocation Payments-'Rest Home Residents’ Property Acquired by
the Commission. Temporary rest home residents who maintain permanent
residence elsewhere that are being acquired by the Commission, are entitled to
any relocation payment they are eligible to receive and the fact that they are
temporarily residing in a rest home has no effect on such eligibility.
Permanent rest home residents may own residential property occupied by
others, or unoccupied. If they do, they are entitled to actual cost moving
payments.
If a displacee, who is displaced from a conventional dwelling unit, or from a
mobile home, moves to and becomes a permanent resident of a rest home, they
can qualify for a rental subsidy payment, if eligible, provided that such rest home
meets DS&S standards. In determining the amount actually paid by the displacee
for their “replacement unit” consider the “basic room fee”. If the displacee
moves to a rest home as a temporary basis after displacement, provide all facts
to the Right of Way Manager and request instructions before making
commitments to the displacee.
7.01.14.00 Displaced Students
7.01.14.01 Moving Costs. Students who are displaced from “temporary” housing, usually
furnished rooms they occupy during the school year are entitled to moving cost
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payments, either fixed payment or actual costs, if their displacement occurs
during the school year and they, of necessity, move to other temporary housing.
Students who move to other temporary housing or return to their permanent
homes are only eligible for moving. Students who occupy housing on a “year-
round” basis are eligible for all relocation benefits.
7.01.14.02 Rental Subsidy and Down Payment Assistance. Students occupying housing on a
temporary basis during the school year, as discussed in the preceding subsection,
and have permanent homes elsewhere, are not entitled to either rental subsidy
or down payment assistance.
Students who occupy housing on a full-time “year round” basis, and establish
such housing as their permanent and legal residence, shall be entitled to the
same relocation payments as any other displaced tenant.
7.01.15.00 Losses Due to Negligence
Losses due to negligence on the part of the displacee, his agent or employees are not eligible
for reimbursement under the Relocation Program.
7.01.16.00 Displacee’s Refusal of Assistance
There is no provision for the Commission to authorize displacees to waive their right to claim a
relocation payment to which they are entitled to receive; unless the acquisition of the property
qualifies as a “voluntary acquisition”. However, a displacee cannot be forced to sign and
submit a relocation payment claim if he elects not do so. In any circumstance when a displacee
does not accept a relocation payment, there must be clear evidence in the file that the person
was fully informed of all of their potential benefits including probable dollar amounts.
7.01.17.00 Rental of Commission-Owned Property
7.01.17.01 New Renters after Acquisition. Persons who rent property from the Commission
after it has been acquired and vacated are not eligible for relocation payments.
This must be fully disclosed at the time of the rental.
Decent, safe and sanitary units owned by the Commission will be available for
rent when a Leaseback Agreement is used. Improved parcels owned by the
Commission that do not meet DS&S standards must not be rented for residential
purposes.
7.01.17.02 Rental Rates. Rental rate policies are outlined in the Property Management
chapter of this Manual.
7.01.17.03 Rental Holdovers. California Code of Civil Procedure Section 1263.615 requires
that the Commission offer a one-year leaseback agreement to the owner of a
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property to be acquired under threat of eminent domain unless the Commission
states in writing that the property is scheduled to be used for the project within
two years of its acquisition. The Commission may opt to allow rental holdovers if
the property will be used in less than two years. A decision to allow rental
holdovers requires the approval of both the Right of Way Manager and the
Project Manager.
7.01.17.04 Residential Rental Holdovers. If eligible displacees of a property acquired by the
Commission desire to rent it after the possession period has expired, they can do
so, if the construction schedule permits, without jeopardizing or changing their
eligibility for relocation payments, including down payment assistance,
incidental closing cost payments, or increased interest payments. Residential
rental holdovers will normally be accomplished under a Leaseback Agreement.
An owner occupant must be served notice to vacate (at the time the property is
needed for construction) under the terms specified in the Leaseback Agreement,
which will normally be thirty (30) days written notice.
A tenant occupant must be served with a 90-Day written Notice to Vacate before
the Commission takes possession of the property under the terms specified in
the Leaseback Agreement. A 30-Day Notice to Vacate will be sent to the tenant
sixty (60) days after the 90-Day Notice to Vacate is issued.
7.01.17.05 Residential Rental Holdovers – Moving Costs. When residential property is
rented back to the occupant by the Commission, the residential moving cost
payment will be made after the move to a replacement dwelling is completed.
The payment will be based on the amount of personal property actually moved,
unless it is obvious that the quantity of personal property was substantially
increased after the property was rented to the displacee by the Commission. If a
substantial increase is noted, an adjustment will be made in the moving cost
payment to eliminate payment for the items added after the property was
acquired by the Commission.
If fixed-rate moving cost schedule is used, the payment amount will be based on
the number of furnished rooms occupied by the displacee at the time the
property was acquired by the Commission. Additional “rooms” (i.e., storage
shed or fully occupied garage) may be considered for additional payment.
7.01.17.06 Residential Rental Holdovers – Replacement Housing Payment. The replacement
housing payment offer that is in effect at the end of the possession period may
be adjusted if the comparables offered are more than ninety (90) days old from
when they eventually purchase and occupy a DS&S replacement dwelling. A
replacement housing claim cannot be processed or paid until the displacee has
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actually fulfilled all requirements necessary to qualify for this payment, unless a
hardship advance is required.
7.01.17.07 Residential Rental Holdovers – Rental Subsidy Payment. Tenants who occupy a
dwelling unit being acquired by the Commission and who are eligible for a rental
subsidy payment, can rent the subject parcel after it has been acquired by the
Commission without jeopardizing or changing his eligibility for the subsidy
payment.
The rental subsidy payment offer that is in effect at the end of the possession
period may be adjusted if the comparables offered are more than ninety (90)
days old from when the tenants eventually move to a DS&S replacement rental
unit.
The rental subsidy claim cannot be paid until the tenant actually vacates the
subject property, moves to a DS&S replacement dwelling and otherwise qualifies
for the payment, unless a hardship advance is required.
7.01.17.08 Business Rental Holdovers. The renting of business, farm or non-profit property,
could create serious problems in administering the Relocation Assistance
Program. For this reason, the Commission should try to avoid renting back to
businesses, farms or non-profit organizations.
7.01.18.00 Relocation Payments Not To Be Considered As Income
No payment made under the Relocation Assistance Program outlined in this chapter shall be
considered as income for the purpose of the Internal Revenue Code of 1986 or for the purpose
of determining the eligibility or the extent of eligibility of any person for assistance under the
Social Security Act or any other federal law, except for any federal law providing low income
housing assistance, consequently, all payments are not reportable to the IRS on Form 1099S.
The above statement also applies in general to state welfare laws; however, if questions exist
concerning the effect of such relocation payments on the state welfare payment eligibility of
specific displacees, definite answers must be obtained from local state welfare officials.
Relocation payments are generally considered exempt from levy payments as well. If the local
IRS field personnel intend to take levy action against a relocation payment, inform Right of Way
Manager who will, in turn, seek advice from legal counsel.
7.01.19.00 Delivery of Relocation Payment Checks
All checks issued under the Relocation Assistance Program are to be mailed to the designated
recipient by certified mail or personally delivered. A letter of transmittal setting out the check
number, amount and type of payment (e.g. moving cost, replacement housing, etc.) should
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accompany the check. The certified return receipt should be attached to the file copy of the
transmittal letter and retained in the parcel file.
It is also permissible to deliver or assign relocation checks to responsible parties other than the
displacee to whom such checks are made payable provided that the displacee specifically and
clearly requests such action in writing.
Relocation payment checks must be made payable to the subject property displacees, except as
authorized herein (administrators of estate, guardians). Moving cost payment checks can be
made payable directly to moving companies under certain specific terms discussed hereafter.
7.01.20.00 “Rounding” of Claim Amounts
Relocation claims based on actual costs must not be rounded. Claims based on computed
amounts (judgments, not actual costs) can be rounded to the nearest dollar. Only the “total
amount due” can be so rounded, the component parts of a claim must be set out in their exact
amounts.
7.01.21.00 Duplicate Payments
Under no circumstances can a displacee be paid duplicate relocation payments, covering the
same displacement, by two different governmental acquisition agencies.
If the relocate is an employee being transferred by a private company is in occupancy of a
parcel being acquired by the Commission at the initiation of negotiations for such parcel, or
upon receipt of a Notice of Intent To Acquire, the Commission will pay all relocation payments
such displacee is qualified to receive regardless of any transfer payments made to him by his
employer and regardless of when the transfer was initiated.
7.01.22.00 Documentation Requirements
7.01.22.01 Relocation Case Files. The Right of Way Consultant shall maintain a Case File for
each person who meets the definition of displaced person or persons not
displaced. The Case File shall contain the Relocation Agent’s Log or Diary,
Correspondence to and from the displacee or pertaining to the displacement,
and copies of claim forms and supporting documents.
7.01.22.02 Relocation Log or Diary. The Relocation Agent shall maintain a complete and
legible log that will contain, at least, the following entries:
• Date case was assigned to the Relocation Agent
• Date, status and pending required action when transferred from Agent to Agent
• Date and place of each personal contact, list of persons present and particulars
of the discussion
• Date and particulars of all significant phone calls
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• Date of Relocation Assistance Program being delivered or mailed, including
statement that relocation program was explained and assistance offered
• Amounts of relocation payments offered. Copies of benefit letters delivered or
mailed
• Claimant’s response to offer of assistance and relocation intentions known
• Date claim forms were delivered and kinds and amounts of payments involved
• Date payment amounts received; if revised, date claimant was advised of change
in entitlement and amounts involved
• An entry to the effect that replacement housing and the replacement housing
valuation was current as of date of vacation. Case File will contain written
backup that valuation is current
• Addresses and prices of replacement properties offered to displace and methods
used to transmit information
• Dates correspondence or documents were received or transmitted
• Delivery dates of official notices, such as 90-Day Notice
• Entry when a moving claim is processed indicating circumstances of vacation,
e.g., voluntary self-relocation, eviction, subject to a 90 or 30-Day Notice, advisory
assistance used
• Right of Way Manager sign-off for closed files
7.01.23.00 Manner of Notices
The following notices are required by federal regulation and must be in writing and personally
served or sent by certified or registered first-class mail with return receipt requested. Parcel
files must be documented to show that the notices are provided in the prescribed manner.
Persons who are unable to read and/or understand the notices must be provided with
appropriate translation and counseling.
• General Information Notice
• Relocation Brochure
• Notice of Relocation Eligibility (Relocation Payment Offer)
• Title VI
• Vacancy Notices
Additional notices developed under the Commission’s procedures are discussed in various
sections of this Manual.
7.01.24.00 Relocation Program on Projects Affected by a Major Disaster
Individuals and families whose homes have been damaged or destroyed by a major disaster and
who have not been able to re-occupy their homes by the initiation of negotiations for the
subject property can be considered to be in constructive occupancy provided the following
occurs:
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• That the area has been declared as a major disaster area by the President
• That the funding federal agency has determined that constructive occupancy is
acceptable under the circumstances. (When a situation of this nature is encountered,
provide facts to the Right of Way Manager prior to making eligibility commitments to
the displace.)
The replacement housing payment for a long term owner occupant will be based on the
difference between the amount the Commission pays for the subject property in its damaged
condition and the confirmed price of the most nearly comparable replacement property
available (comparable to the subject before the disaster) or the difference between the
Commission’s payment and the amount that the displacee actually pays for a DS&S
replacement, whichever is less, minus any proceeds received by the relocatee as payment for
damage to his residence from insurance companies and/or from any other source.
NOTE: Procedural Instructions will be issued by the Right of Way Manager in consultation with
the Commission’s legal counsel when tenants, businesses, farm operations or non-profit
organizations are involved in a major disaster. Also, instructions for computing relocation
payments will be issued when a displacee experiences disaster which damages or destroys his
home or business after the initiation of negotiations for the subject parcel.
7.01.25.00 Notice of Intent to Acquire
It is the policy of the Commission not to issue Notices of Intent to Acquire (whether verbal or in
writing) except when authorized in writing by the Right of Way Manager. The exception applies
only when it is obviously in the Commission’s best interest to do so or when a displacee will
suffer serious personal or financial hardship if such action is not taken.
7.01.26.00 Administrative Responsibility
The Right of Way Manager has the primary responsibility for implementing the Relocation
Assistance Program on all Commission projects. The Right of Way Manager shall designate, at
least one member of the Right of Way Staff whose primary assignment is to carry out the
Relocation Assistance Program on projects that involve relocation assistance.
7.01.27.00 Legal Residency
If the project is federally funded, the displacee will have to “self-certify” their legal residency in
the United States and eligibility for relocation benefits and assistance. The Relocation Agent
shall advise the displacee of this requirement as early as the provision of advisory assistance
and no later than the application for benefits.
7.01.28.00 Loss of Goodwill
When any relocation payment precedes settlement of a claim for compensation for loss of
goodwill under the eminent domain law, the Commission, before tendering the relocation
payment, shall state in writing what portion of the relocation payment, if any, is considered to
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be compensation for loss of goodwill and shall explain that it will reduce any future
compensation for loss of goodwill payment by that amount.
When any loss of goodwill payment precedes a claim for a relocation payment, the relocation
payment will be reduced by an amount, if any, that was considered as part of the loss of
goodwill payment. The Commission will advise the displacee in writing the method of the
calculation.
7.01.29.00 Manner of Disbursement
Rental subsidy payments will be disbursed in lump sums, unless the Commission determines
that payment should be made in installments.
7.01.30.00 Basic Rights of Displaced Person
No person shall be required to move from a displacement dwelling unless comparable
replacement housing is available to such person. The Commission shall not require any
displaced person to accept a dwelling provided by the Commission (unless the Commission and
the displaced person have entered into a contract to do so) in lieu of any acquisition payment
or any relocation payment for which the person may otherwise be eligible.
7.02.00.00 RELOCATION PLANNING
During the early stages of development, the Commission shall plan federal and federally-
assisted programs or projects in such a manner that recognizes the problems associated with
the displacement of individuals, families, businesses, farms, and nonprofit organizations to
develop solutions to minimize the adverse impacts of displacement. Such planning, where
appropriate, shall precede any action by the Commission which will cause displacement, and
should be scoped to the complexity and nature of the anticipated displacing activity including
an evaluation of program resources available to carry out timely and orderly relocations.
Planning may involve a relocation survey or study, which may include the following:
• An estimate of the number of households to be displaced including information such as
owner/tenant status, estimated value and rental rates of properties to be acquired,
family characteristics, and special consideration of the impacts on minorities, the
elderly, large families and persons with disabilities when applicable.
• An estimate of the number of comparable replacement dwellings in the area (including
price ranges and rental rates) that are expected to be available to fulfill the needs of
those households displaced. When an adequate supply of comparable housing is not
expected to be available, the Commission should consider housing of last resort actions.
• An estimate of the number, type and size of the businesses, farms, and nonprofit
organizations to be displaced and the approximate number of employees that may be
affected.
• An estimate of the availability of replacement business sites. When an adequate supply
of replacement business sites is not expected to be available, the impacts of displacing
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the businesses should be considered and addressed. Planning for displaced businesses
which are reasonably expected to involve complex or lengthy moving processes or small
businesses with limited financial resources and/or few alternative relocation sites
should include an analysis of business moving problems.
• Consideration of any special relocation advisory services that may be necessary from the
Commission and other cooperating Agencies.
7.03.00.00 RELOCATION ASSISTANCE ADVISORY SERVICE
7.03.01.00 General
The Relocation Assistance Program can be divided into two functions (a) relocation benefits,
and (b) advisory services and assistance to those being displaced. The term “advisory services”
relates to advice and assistance only.
7.03.02.00 Purpose
To establish a Relocation Assistance Advisory Services Program which will enable relocation
personnel to provide meaningful assistance to those being displaced regardless of race, color,
religion, sex, age, special assistance, physical disability or national origin. The services discussed
in this section must be provided by personal contact, if reasonably possible. If personal contact
cannot be made, the Relocation Agent must document the file to show that reasonable efforts
were made to make personal contact with displacees.
7.03.03.00 Eligibility for Advisory Service
Relocation assistance advisory services must be offered to the following:
• Any “displaced person"
• Any person occupying property immediately adjacent to the real property being
acquired when such person(s) are caused substantial economic injury as a result of the
acquisition
• Any person who moves from their residential unit, which is not located in the
acquisition, due to reasonable necessity, because of the acquisition of their business or
farm operation
• Any person who moves personal property from real property not located within the
acquisition, due to reasonable necessity, as a result of the acquisition of their business
or farm operation
7.03.04.00 Advisory Service Requirements
The Relocation Assistance Advisory Service Program must include such measures, facilities or
services as may be necessary or appropriate to do the following:
• Discuss and explain the service available, relocation payments and the eligibility
requirements therefore and assist in completing any applications or other forms
required
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• Determine the need, if any, of displaced persons, for relocation assistance
• Provide current and continuing information on the availability, prices and rentals of
comparable DS&S housing, and of comparable commercial properties and locations for
displaced businesses
• Assist a person displaced from the business or farm operation in obtaining and
becoming established in a suitable replacement location
• When appropriate, supply information concerning federal and state housing programs,
disaster loan programs, and other federal and state programs offering assistance to
displaced person
• Advise displaced persons that no payments received under the Uniform Relocation Act
shall be considered as income for the purpose of the IRS code or for the purpose
determining the eligibility or the extent of eligibility of any person for assistance under
the social security act or any other federal law
• Provide other advisory services, as deemed appropriate and necessary, to displaced
persons in order to minimize hardships to such persons in adjusting to a new location
Advisory services shall be administered on a reasonable basis commensurate with the
displacees’ needs. This could vary from (a) minimum assistance when displacees are well
informed, mentally, physically and financially able to manage their displacement (or overcome
their economic injury) and who, as a consequence, neither need or desire Commission
assistance to (b) almost unlimited advisory services and assistance for those who are elderly,
disabled or otherwise unable to cope with their displacement or economic injury problems. All
displacees, especially the elderly and handicapped, shall be offered transportation to inspect
housing to which they are referred.
7.04.00.00 RELOCATION NOTICES
7.04.01.00 General Information Notice (“GIN”)
As soon as feasible, a person scheduled to be displaced shall be furnished with a general
written description of the Commission’s relocation program which includes the following:
• Informs the person that he or she may be displaced for the project and generally
describes the relocation payment(s) for which the person may be eligible, the basic
conditions of eligibility, and the procedures for obtaining the payment(s).
• Informs the person that he or she will be given reasonable relocation advisory services,
including referrals to replacement properties, help in filing payment claims, and other
necessary assistance to help the person successfully relocate.
• Informs the person that he or she will not be required to move without at least ninety
(90) days of advance written notice and informs any person to be displaced from a
dwelling that he or she cannot be required to move permanently unless at least one
comparable replacement has been made available.
• Describes the person’s right to appeal the Agency’s determination as to a person’s
application for assistance for which a person may be eligible under this part.
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• Advises the person not to move until their eligibility for relocation benefits has been
established.
7.04.02.00 Notice of Relocation Eligibility
Eligibility for relocation assistance shall begin on the date of Initiation of Negotiations for the
occupied property. When this occurs, the Commission shall promptly notify all occupants in
writing of their eligibility for applicable relocation assistance.
7.04.03.00 Reminder Notice
The Relocation Agent shall send timely written notification of the possible loss of rights and
expiration date thereof to persons who are eligible for monetary benefits, and have moved
from the acquired property, but have not filed a claim.
Notification shall be sent periodically throughout the qualification period. In any event, written
contact shall be made no later than within the last six months prior to the filing expiration date.
This will allow sufficient time within which to obtain necessary documentation to complete the
claim filing(s).
If no response to the written notification is received, the Relocation Agent should make
telephone contact within the appropriate time limit and document the contact in the log or
diary.
7.04.04.00 90-Day Notices
No lawful occupant shall be required to move unless he or she has received at least ninety (90)
days advance written notice of the earliest date by which he or she may be required to move.
The 90-Day Notice may not be served prior to initiation of negotiations for acquisition of a
parcel and, as a general rule, shall not be served until the Commission has obtained legal
possession of the property. If possession of the right of way parcel is obtained through the
court system, the court documentation can be considered to be the 90-Day Notice if it is
provided at least 90 days prior.
Lawful eligible occupants must be informed of the maximum relocation housing payment
amount to which they are entitled prior to or in conjunction with the issuance of the 90-Day
Notice.
The 90-Day Notice shall either state a specific date as the earliest date by which the occupant
may be required to move (90-Day Notice to Vacate) or state that the occupant will receive a
further notice indicating, at least thirty (30) days in advance, the specific date by which he or
she must move (90-Day Informational Notice).
07.04.04.01 90-Day Notice to Vacate. A 90-Day Notice to Vacate shall not be given until the
Commission has control of the property. Control of property is obtained on the
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date escrow is closed, the Final Order in Condemnation is recorded, or the date
the Order of Possession is signed by the court (unless the Order of Possession
has a specific date-see below).
Since no eligible person shall be served a Notice to Vacate from a residential unit
unless appropriate housing is available, at least one available comparable
replacement property that is within financial means, must be offered to
displacee simultaneously with the Notice to Vacate. A parcel log or diary entry
shall indicate by address the specific dwellings offered at the time of service.
07.04.04.02 90-Day Informational Notice. The 90-Day Informational Notice is not a notice to
vacate. A Relocation Agent serves the 90-Day Informational Notice in person to
eligible and ineligible lawful occupants who are required to vacate because of
the proposed project, and have personal property located on the acquired
property. A 90-Day Informational Notice must be followed by a 30-Day Notice.
If the 90-Day Informational Notice is issued before a comparable replacement
dwelling is made available, the notice must state clearly that the occupant will
not have to move earlier than ninety (90) days after such dwelling is made
available.
If a 30-Day Notice to Vacate is not served within six (6) months following
issuance of the 90-Day Informational Notice, the original 90-Day Informational
Notice shall be canceled and a new one issued.
On an exception basis, such as projects with short lead time or instances where
rental delinquencies can be anticipated, a 90-Day Informational Notice may be
given on or after initiation of negotiations for the parcel. In such instances, the
30-Day Notice to Vacate shall not be given until the Commission has legal
possession of the property.
7.04.05.00 30-Day Notice to Vacate
A 30-Day Notice to Vacate is issued sixty (60) days or more after the 90-Day Informational
Notice is issued. This notice cites a specific date by which the displacee must vacate. This date
may be extended, but any extension must be in writing and must cite a new specific date by
which displacee is to vacate.
Since no eligible person shall be served a Notice to Vacate from a residential unit unless
appropriate housing is available, at least one available comparable replacement property that is
within financial means, must be offered to displacee simultaneously with the Notice to Vacate.
A parcel log or diary entry shall indicate by address the specific dwellings offered at the time of
service.
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7.04.06.00 60-Day Notice to Vacate (Mobile Home Park Occupants)
Civil code Section 798.55 requires a minimum 60-Day Notice to Vacate be given to mobile home
park occupants who reside in mobile homes or trailer coaches that require permits to be
moved. Service of this notice shall be made in accordance with the instructions for service of a
30-Day Notice to Vacate except that the Notice is effective sixty (60) days after service.
7.04.07.00 Notice to Vacate with Order of Possession
If the Order of Possession contains a specific date, the Relocation Agent may also issue a 90-Day
Notice to Vacate that is served simultaneously and is effective the same date as the Order of
Possession. Addresses of comparable replacement dwellings are supplied in the 90-Day Notice,
and a 30-Day Notice to vacate is not required.
If the Order of Possession does not contain a specific date by which it will become effective, the
Relocation Agent serves a separate 90-Day Notice to Vacate that is effective the same date as
the Order of Possession and accompanies service of the Order.
7.04.08.00 Notices to Unlawful Occupants
Eligible tenants who are either delinquent in their rental payments or in violation of their rental
agreement for any other reason are considered unlawful occupants and are served either a 3-
Day Notice demanding payment of rent or possession or a 30-Day Notice of Termination of
Tenancy and Notice to quit.
Although the Commission is under no obligation to the unlawful ineligible tenant, the
Relocation Agent is encouraged to provide advisory services as a method of assisting unlawful
tenants in vacating the property, particularly where hardship conditions exist.
7.04.09.00 Urgent Need
In unusual circumstances, an occupant may be required to vacate the property on less than
ninety (90) days advance written notice if the Commission determines that a 90-Day Notice is
impracticable, such as when the person’s continued occupancy of the property would
constitute a substantial danger to health or safety. A copy of the Commission’s determination
shall be included in the relocation file.
7.05.00.00 COMPARABLE REPLACEMENT DWELLINGS
7.05.01.00 General
No person to be displaced shall be required to move from his or her dwelling unless at least one
comparable replacement dwelling (defined above) has been made available to the person.
Where possible, three or more comparable replacement dwellings shall be made available. A
comparable replacement dwelling will be considered to have been made available to a person,
if the following occurs:
• The person is informed of its location.
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• The person has sufficient time to negotiate and enter into a Purchase and Sale
Agreement or lease for the property.
• Subject to reasonable safeguards, the person is assured of receiving the relocation
assistance and acquisition payment to which the person is entitled in sufficient time to
complete the purchase or lease the property.
One of the Commission’s goals is that any available comparable used to determine a
price/rental differential should be available at the listed price during the period the displacee is
actively seeking replacement housing. This period of active search ends when the displacee
enters into a contract to purchase (acceptance of Deposit Receipt), builds, or rents a
replacement property or when the displacee vacates the displacement property.
7.05.02.00 Waiver of Policy on Comparable Replacement Housing Availability
The federal agency funding the project may grant a waiver of the policy in any case where it is
demonstrated that a person must move because of:
• A major disaster as defined in Section 102(c) of the Disaster Relief Act of 1974 (42 U.S.C.
5121)
• A declared national emergency
• Another emergency which requires immediate vacation of the real property, such as
when continued occupancy of the displacement dwelling constitutes a substantial
danger to the health or safety of the occupants or the public.
7.05.03.00 Emergency Move
Whenever a person is required to relocate for a temporary period because of an emergency,
the Commission shall:
• Take whatever steps are necessary to assure that the person is temporarily relocated to
a decent, safe, and sanitary dwelling.
• Pay the actual reasonable out-of-pocket moving expenses and any reasonable increase
in rent and utility costs incurred in connection with the temporary relocation.
• Make available to the displaced person as soon as feasible, at least one comparable
replacement dwelling. (For purposes of filing a claim and meeting the eligibility
requirements for a relocation payment, the date of displacement is the date the person
moves from the temporarily occupied dwelling).
7.05.04.00 Replacement Dwellings for Multiple Occupants of One Dwelling
If two or more individuals are living together and occupying one dwelling unit, the Commission
is not obligated to provide them with more than one replacement dwelling. The Commission is
obligated to provide eligible individuals with a comparable dwelling on a reasonable-cost basis.
If it costs less to provide one comparable replacement dwelling than two or more, the
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Commission shall determine the occupants’ maximum entitlement based on one replacement
dwelling.
7.05.05.00 Replacement Dwellings for Multiple Families of One Dwelling
If two or more families occupy the same single-family dwelling unit, the Commission will first
attempt to locate a replacement unit that is comparable to the subject unit which will enable
the families to relocate together; however, if such comparable is not available, the
Commission’s obligation to provide comparable replacement housing will be met if a separate
DS&S replacement unit is made available to each family which provides functional
comparability to the space and utility they enjoyed.
7.06.00.00 RELOCATION CLAIMS
7.06.01.00 Documentation of Claims
Any claim for a relocation payment shall be supported by such documentation as may be
reasonably required to support expenses incurred, such as, bills, certified prices, appraisals, or
other evidence of such expenses. A displaced person must be provided reasonable assistance
necessary to complete and file any required claim for payment.
The Relocation Agent must verify qualifying activities, such as moving and occupying
replacement housing, by personal inspection with documentation in the parcel log or diary.
7.06.02.00 Deadline for Filing Claims
For tenants, all claims for a relocation payment shall be filed with the Commission within
eighteen (18) months after the date of displacement.
For owners, all claims for a relocation payment shall be filed with the Commission within
eighteen (18) months after the later of the date of displacement, which is the date that the
move was completed, or the date of the final payment for the acquisition of the real property
including condemnation awards, stipulated legal settlements and jury awards. This time period
may be waived by the Commission for good cause.
7.06.03.00 Claims for Multiple Occupants of One Dwelling
There are separate entitlements to relocation payments only if two or more occupants are
clearly maintaining separate households within the same displacement dwelling. The
Relocation Agent must document why the occupants should be considered as maintaining more
than one household in the displacement dwelling and prepare an economic analysis of available
replacement housing alternatives.
If two or more occupants of the displacement dwelling move to separate replacement
dwellings, each occupant is entitled to a reasonable prorated share, as determined by the
Commission, of any relocation payments that would have been made if the occupants moved
together to a comparable replacement dwelling. However, if the Commission determines that
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two or more occupants maintained separate household within the same dwelling, such
occupants have separate entitlements to relocation payments.
7.07.00.00 RELOCATION PAYMENTS
7.07.01.00 Expeditious Payments
The Commission shall review claims in an expeditious manner. The claimant shall be promptly
notified as to any additional documentation that is required to support the claim. Payment for a
claim shall be made as soon as feasible following receipt of sufficient documentation to support
the claim.
7.07.02.00 Assignment of Payment
Displacee may assign part or all of the claim. Examples include assigning to the following
parties:
• Payment of rent for the replacement dwelling to the landlord
• Payment of moving company expenses to the moving company
• Deposit of replacement housing payment into escrow to purchase replacement dwelling
• Payment of relocation expenses directly to the vendor/contractor providing the service
• Payment to a lending institution for repayment of loans
NOTE: Relocation payments are not assignable for obligations, such as general debts and rent
owed to former landlord.
7.07.03.00 Delivery of Payment
Payment shall be delivered by the Relocation Agent, except in the following cases:
• Payment is delivered to an escrow agent by check or wire transfer.
• Payment is delivered to an assignee.
• Payment is mailed by accounting.
7.07.04.00 Advance Payments
If a person demonstrates the need for an advance relocation payment in order to avoid or
reduce a hardship, the Agency shall issue the payment, subject to such safeguards as are
appropriate to ensure that the objective of the payment is accomplished.
When replacement housing is built or rehabilitated, payments are made only when the unit is
completed, inspected to be decent safe and sanitary, and occupied by the displacee.
7.07.05.00 Occupants Separate or Divorce
Eligible occupants who subsequently separate or divorce and establish separate households,
whether by choice or by litigation, qualify for payments as one displaced family. The family’s
payments may be divided between the occupants in any proportion on which they agree. This
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agreement must be in writing and cannot be changed without written consent from both
parties.
If the parties cannot reach an agreement, entitlement is calculated as if they relocated
together. Payment can be determined by type of eligibility established by the first party to
relocate and file a claim. Although only one party needs to sign the claim forms, checks must be
made payable to both parties.
If divorce or separation occurs and one spouse vacates the property prior to initiation of
negotiations, the spouse who remains in occupancy is eligible for all relocation benefits that
may accrue.
7.07.06.00 Deduction from Payments
The Commission shall deduct the amount of any advance relocation payment from the
relocation payment(s) to which a displaced person is otherwise entitled. The Commission shall
not withhold any part of a relocation payment to a displaced person to satisfy an obligation to
any other creditor.
Courts have held that Relocation Assistance Payments cannot be attached through legal
actions. In bankruptcy situations, the displacee must advise Trustees of any possible relocation
payments.
7.07.07.00 Notice of Denial
If the Agency disapproves all or part of a payment claimed or refuses to consider the claim on
its merits because of untimely filing or other grounds, it shall promptly notify the claimant in
writing of its determination, the basis for its determination and the procedures for appealing
that determination.
7.08.00.00 MOVING COSTS
7.08.01.00 Payment Eligibility
All displaced persons, including less than ninety day occupants, subsequent occupants and
occupants partially displaced, are eligible for moving costs.
7.08.02.00 General Moving Cost Policies
7.08.02.01 Policy Concerning More Than One Move. Moving costs cannot be paid for more
than one move of the same personal property without prior approval by the
Right of Way Manager. More than one move will not be approved unless it is
clearly in the best public interest to do so. This policy does not apply when it is
necessary to move personal property to and from storage.
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Two moves can be justified when personal property is located within a
temporary or permanent easement - one move from the easement area and
another to return the personal property after the easement (if temporary)
reverts to the property owner.
7.08.02.02 Distance of Move. There is no limitation on the distance a displacee can move
personal property. However, moving cost payments must not include the
expenses involved in moving the personal property more than fifty (50) miles.
When the relocation cannot be accomplished within the fifty (50) miles from the
subject location, the Right of Way Manager may allow reimbursement of cost to
the nearest adequate and available site.
Moving cost payments can be made to cover the cost of moving personal
property on to remaining or other lands owned by the displacee or his or her
landlord.
7.08.02.03 Owner Retention of Real Property. When an owner retains any item that was
classified as real property, the cost of moving it to a new location is never eligible
for reimbursement.
If a retained dwelling is moved without removing the occupant’s personal
property, the displacee can still be paid a moving cost payment based on the
“Fixed-Payment Moving Cost Schedule”.” No additional moving cost payment
will be made. If, however, furnishings are removed during the time the building
is being relocated, displacee could be paid the actual cost of removing, storing
and replacing the subject furnishings, or the fixed-payment option in lieu of
actual costs.
7.08.02.04 Personal Property Sold after Initiation of Negotiations and Prior to Displacement.
Displaced persons who sell or otherwise dispose of personal property after
initiation of discussions and prior to displacement are eligible for a fixed
payment (discussed later in the chapter).
Fixed Payment Option. If the owners of residential personal property who
selected the “fixed payment” moving cost option, sell or otherwise dispose of
their personal property prior to its being removed from the subject parcel, they
shall be entitled to the fixed payment under Schedule B of the Fixed-Payment
Moving Cost Schedule after such personal property has been removed from the
right of way. The fact that personal property was disposed of prior to its removal
from the subject parcel has no effect on the eligibility of the displacee to receive
his or her fixed moving cost payment. The person who purchased the personal
property will not be eligible for reimbursement of the cost of moving the
property.
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Actual Cost Option. If the owners of personal property select an “actual cost”
moving cost payment, then sell or otherwise dispose of any personal property
prior to the time it is removed, they will not be entitled to reimbursement for
the cost of moving the items that were sold or otherwise disposed of. The party
who acquired the personal property may be eligible for a moving cost payment
as a Subsequent Occupant. If a business, farm or non-profit organization is
involved, the original owner, who owned the items at the initiation of
negotiations, may be eligible for a “Tangible Property Loss” payment relating to
the items sold and/or disposed of.
No moving cost payment will be paid for items that are sold to customers of a
business, farm operation or non-profit organization, as well as the cost of moving
items that are sold to customers and delivered by the displacee.
7.08.02.05 Real Property Sold to Another Party. If a property owner sells his or her real
property which is needed as right of way to another party after initiation of
negotiations, and not directly to the Commission, and as a result, vacates such
property prior to the time possession is required by the Commission, he or she
will not be entitled to a moving cost payment as the displacement will be
necessitated by the sale of the real property and not due to the Commission
acquisition.
7.08.02.06 Payment Assurance to Moving Firms. It is possible that displacees, whose
moving cost payments are to be based on “actual costs,” may not be financially
able to employ a moving firm and pay for their move prior to receiving a moving
cost payment from the Commission. If this situation occurs, it is possible that
moving firms will be unwilling to conduct the move without assurance that they
will receive payment. In such instances, one of the two following actions may be
taken:
Benefits Confirmation Letter. Provide the displacees a letter confirming the
moving cost payment offer (based on the lowest, most reasonable moving cost
bid or estimate received) which they can present to the moving firm as proof
that they will receive payment from the Commission which will enable them to
pay the mover.
Check Payable to Moving Company. The displacee and the moving firm can
execute an agreement authorizing the Commission to make the moving cost
payment check payable to the moving firm and only released to the moving
company upon completion of a move satisfactory to all parties
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7.08.02.07 Move Bids. The procedures for accomplishing various types of moves normally
require at least two (2) moving cost bids or estimates from licensed commercial
movers who are qualified to conduct the displacee’s move. Each bid must reflect
the total amount that will be charged for conducting the move. When it only
possible to get one (1) bid, advise the Right of Way Manager of the facts involved
and ask for authority to proceed on the basis of one (1) bid or estimate.
If the lowest bid appears to be unreasonable, the Relocation Agent must obtain
additional bid(s) to assure that the moving cost will be acceptable. It is expected
that bids will be provided without cost; however, with prior approval of the Right
of Way Manager, movers can be compensated for preparing bids for specific
moves.
If it is not practical to obtain advance moving cost bids due to the complexity of a
move, the displacee can be authorized by the Right of Way Manager to conduct
the move without them. When the requirement for obtaining bids is waived due
to the complexity of the move, the Case File must be documented and state the
justification therefore.
The displacee must be given a reasonable opportunity to help select the two
moving firms who will be asked to bid on his or her move. This can be
accomplished by assembling a list of all certified moving companies in the area
which are acceptable to the Commission.
The reasonable preference of the displacee should be honored; however, the
Relocation Agent is not permitted to accept unreasonable requests which would
not reflect good business practices, or which involve moving firms not
acceptable to the Commission. If it is not reasonably possible to agree with the
displacee, the Relocation Agent has authority to carefully select qualified movers
and to proceed without the displacee’s concurrence. The Relocation Agent shall
advise the Right of Way Manager, in writing, at any time it is necessary to
proceed without the displacee’s concurrence.
Copies of all bids must be retained in the Relocation Case File.
Arrangements for making the move are the responsibility of the displacee. The
Commission will not contact or employ the mover on behalf of the displacee and
will not supervise the move except under unusual circumstances and only after
approval is granted by the Right of Way Manager. Approval will not be granted
unless the displacee is physically or mentally incapable of such actions and when
they do not have anyone else willing and able to assist them.
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7.08.02.08 Overtime Charges. Moving cost payments must be based on “straight time”
rates and not on overtime rates except in cases where it is essential that the
move be conducted during “off duty” hours. Prior approval from the Right of
Way Manager is required before a move involving overtime rates can proceed.
7.08.03.00 General Moving Costs
The following items are eligible moving costs for all displaced persons:
7.08.03.01 Professional Services. The reasonable costs of professional services necessary
for one of the following:
- Planning the move of personal property
- Moving the personal property
- Installing the relocated personal property at the replacement site
7.08.03.02 Reasonable “Out of Pocket” Fees. Reasonable “out of pocket” fees paid to
consultants for preparing inventories of personal property are normally
reimbursable. Displacees should be encouraged to submit proposals for
obtaining professional services, including the anticipated costs, to the Relocation
Agent prior to approval. The cost of professional services will be limited to the
reasonable hourly rate charged by others in the specific profession.
7.08.03.03 Transportation. Transportation of the displaced person and personal property to
the replacement location up to a distance of fifty (50) miles. Such costs can be on
a mileage basis, computed as one trip from the property acquired to the
replacement property, or actual costs if commercial transportation is used.
7.08.03.04 Packing and Crating. The reasonable costs of packing, crating, unpacking and
uncrating personal property are reimbursable incidental moving costs.
7.08.03.05 Insurance. The cost of insurance premiums covering loss and damage of
personal property while in transit or storage can be included in a moving cost
claim based on actual expenses but must not exceed the reasonable
replacement value of the personal property involved, including the deductible, if
applicable. Claims including insurance premiums must be supported by paid
receipts showing the amount paid for the insurance and the amount of coverage
involved.
7.08.03.06 Losses in Moving. The reasonable replacement value of property lost, stolen or
damaged (not caused by the fault or negligence of the displaced person, his
agent or employee) in the process of moving is reimbursable, when insurance to
cover such loss or damage was not reasonably available. This payment is not
authorized when residential moving cost payments are based on the fixed-
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payment schedule, or when the fixed-payment non-residential option is selected
in lieu of moving costs. The replacement value of damaged personal property
will not be paid if the damaged item can be reasonably repaired.
7.08.03.07 Storage. If it is necessary for displaced persons to store their personal property,
the actual cost of such storage, not to exceed twelve months can be included in
their moving cost claim. The Case File must be documented to explain why such
storage was necessary and justify the amount of the storage charges. The cost of
storing personal property on real property being acquired or on another
property owned or leased by the displacee, is not eligible for payment under the
Relocation Program. If the most practical solution is for the personal property to
be temporarily stored in rented mobile storage units parked on the subject
property, such as vans, trailers, etc., the reasonable cost of renting such units
may be eligible for reimbursement. In these instances, the approval of the Right
of Way Manager is required.
Moving cost claims which include storage costs must be accompanied by a paid
receipt showing the amount paid as storage costs, length of storage period,
where the personal property was stored, and if applicable, a breakdown of the
storage costs.
Storage costs cannot be paid when residential moving cost payments are based
on the “Fixed-Payment Moving Cost Schedule”, or when a fixed non-residential
payment is made in lieu of moving costs.
Should the owners of personal property sell the personal property while they are
in storage, their eligible storage cost period terminates at the end of the month
in which it is sold and neither they, nor the buyer, shall be entitled to any
payment covering the cost of moving such personal property from the storage
area. When storage is necessary, the Commission will normally pay the
reasonable cost of moving the personal property to the storage site and at the
end of the storage period to a place designated by the displacee, provided the
combined distance of both moves, to and from storage, does not exceed fifty
(50) miles in distance. If the move from the storage occurs later than sixty (60)
days after the end of the twelve (12) month storage period, without authorized
extension, the Commission will not reimburse the displacee for the cost of
moving the personal property from the storage unit.
A storage period in excess of twelve (12) months must be approved by the Right
of Way Manager based on necessity.
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7.08.03.08 Costs of Attempting to Sell Personal Property. The reasonable cost incurred in
attempting to sell an item of personal property that is not to be relocated is
reimbursable.
7.08.03.09 Other Moving Related Expenses. In addition to the specific incidental moving
costs discussed herein, eligible displacees can be reimbursed for other moving
expenses that the Commission determines to be reasonable and necessary that
are not specifically ineligible. Under no circumstances will the Right of Way
Consultant discuss with a displaced person any payment under this section until
the Right of Way Manager has approved the payment.
7.08.04.00 Residential Moving Policies
7.08.04.01 Two or More Families Occupy Same Single-Family Dwelling Unit. In most
instances, the term “families” is used in explaining the procedures in this
subsection; however, the principles and instructions also apply when one family
jointly occupies a single-family dwelling unit with other individuals who are not a
part of the family.
Joint-occupancy families are entitled to separate moving cost payments if they
are eligible for separate replacement housing or rental subsidy payments. In
most cases joint-occupancy families will be treated as multiple occupants in one
dwelling.
7.08.04.02 Separation after Displacement. In some instances, two or more families living
together in the same single-family dwelling unit prior to displacement, will move
into separate dwelling units after being displaced. If this occurs and the
Commission determines they are separate households, each family can claim a
separate moving cost payment, either the actual cost of moving their portion of
the personal property involved or a payment based on the appropriate Fixed-
Payment Moving Cost Schedule.
When the payment is based on the fixed-payment schedule, each family can be
paid using the schedule method. Their benefit under the schedule method will
be determined by their ownership of the furnishings, as with any other
residential occupant.
7.08.04.03 All Families Relocate Together. Families who live together prior to displacement
will not be entitled to separate moving cost payments if they move to the same
single family replacement dwelling unit and continue to live together after
displacement, regardless of the circumstances involved.
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7.08.05.00 Residential Moving Costs
Residential moving cost payments as discussed in this subsection relate to all personal property
generally classified as household goods, furniture, appliances and any other items used in the
establishment and maintenance of a home and is not used in the operation of a business, farm
or nonprofit organization. It is important that the Relocation Agent confirm that certain items
of personal property, such as satellite dishes, above ground swimming pools, and outdoor spas,
were not acquired with the real property. Personal property that was acquired with the real
property is not eligible for reimbursement as a move cost payment.
Relocated individuals or families can be paid based on the cost of one, or a combination of the
following methods:
• Self-move
• The “Fixed-Payment Moving Cost Schedule.
7.08.05.01 Commercial Mover. Moves in this category include all situations where eligible
displacees, including partial displacements, employ and pay someone (normally
a moving company or trucking firm) to move their personal property from the
unit acquired by the Commission to a replacement unit and claim
reimbursement for their actual and reasonable expenses. Applicable related
moving expenses paid by displacees, as shown below, are available for
reimbursement under this moving payment option
The owners of mobile homes which have been classified as personal property
can claim the actual and reasonable cost of moving the unit to any location
within fifty (50) miles distance. Moving cost bids should be from qualified
bidders who are equipped and capable of moving mobile homes. The
Commission will reimburse the displacee for incidental expenses related to the
move, including disconnection and hookup of utilities, permit fees and
appliances. The cost of extending water, sewer, electric or other utility lines to
and on the replacement site is not eligible for reimbursement as an incidental
moving cost (This is considered a capital improvement to the site).
7.08.05.02 Residential Self-Move. A residential occupant, including occupant and non-
occupant owners of mobile homes that have been designated as personal
property, may conduct a self-move. Payment will be based on one or a
combination of the actual and reasonable costs incurred or the lower of two bids
prepared by a commercial mover. If payment is based on actual and reasonable
costs, it must be supported by receipted bills for labor and equipment. Hourly
labor and equipment rental rates should not exceed the rates paid by a
commercial mover.
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7.08.05.03 Fixed-Payment Moving Cost Schedule. Individuals and families who are
displaced from their dwelling, or from a seasonal residence, can elect to receive
a moving cost payment based on the Federal Highway Administration’s (FHWA)
periodically published “UNIFORM RELOCATION ASSISTANCE AND REAL
PROPERTY ACQUISITION POLICIES ACT-RESIDENTIAL MOVING EXPENSES AND
DISLOCATION ALLOWANCE PAYMENT SCHEDULE.” The FHWA moving cost
schedule is a generally accepted industry standard and therefore will be used by
the Commission on projects funded by other agencies, unless the funding agency
has an alternate schedule.
Anyone using the schedule method must check with FHWA to insure that the
schedules below are current.
Schedule A (Occupant Provides Furniture). This schedule covers situations in
which a displacee occupies and provides the furnishings for a dwelling unit.
An attic, basement, enclosed porch, separate shed or other similar-type storage
areas can qualify as a compensable room, provided that such area contains
furniture, appliances and/or other personal property reasonably equivalent to a
routine furnished room. Bathrooms, hallways and closets do not qualify and
must not be counted as separate rooms. If the amount of personal property in a
room or space actually contains more than the normal contents, the room count
can be increased accordingly. If some rooms are considered to be ineligible to
qualify as a furnished room due to being sparsely furnished, it is proper to
combine two or more of such rooms to qualify as one compensable furnished
room.
The number of “eligible rooms” on which the fixed-payment amount is based will
be established by the Relocation Agent who is assigned to the unit at the
initiation of negotiations and must be compatible with the number of rooms
reflected in the Relocation Agent’s report. If the number of rooms shown in the
relocation Agent’s report or the letter of eligibility for relocation benefits differs
from the number of rooms shown in the needs questionnaire, the difference
must be explained on the Relocation Agent’s Report.
Occupants of mobile homes which are classified as real property shall be paid
under this schedule for moving their furnishings in the same manner as
occupants of conventional dwellings, based on the number of rooms in the
subject mobile home.
When an acquisition includes an occupied residence located on a parcel larger in
size than a normal building lot in the area, including those located on farms, the
qualified owner shall be permitted to select the fixed-payment option for the
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residential move and also claim the actual cost of moving any items of personal
property located on such “extra land.”
Number of Rooms Payments
1 $685
2 $880
3 $1100
4 $1295
5 $1570
6 $1815
7 $2090
8 $2365
Each Additional Room $250
Schedule B (Furniture Provided By Landlord). This schedule applies to occupants
when the furnishings in a dwelling unit are owned by someone other than its
occupant, normally by the landlord in “furnished units.” “Sleeping rooms”
normally fall within this category.
The occupants of mobile homes who do not own the unit or its furnishings shall
be paid by use of this schedule as any other occupant of a conventional
furnished dwelling unit based on the number of rooms in the mobile home. The
owner of the furnishings cannot be paid a fixed-schedule payment, but could
normally qualify for a moving payment based on actual costs.
Number of Rooms Payment
1 $450
Each Additional Room $85
Schedule Exceptions. If a person has minimal possessions and occupies a
dormitory style room, or if the person’s move is performed by an agency at
no cost to the person, moving costs are limited to $100.
When a partial displacement residential move is involved and the displacee
(occupant or non-occupant) elects to conduct a self-move based on the fixed-
payment schedule, a flat rate of $175 per room or equivalent will be used not to
exceed $1,750.
Combined Residential and Business or Farm Moves. Should a non-residential
moving payment be involved, or a separate business move, it is the Relocation
Agent’s responsibility to insure that the personal property related to the
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business is not considered when determining the number of eligible rooms that
are to be included in the schedule payment and that there is no duplication of
payment.
7.08.05.04 Additional Eligible Residential Moving Costs. Potential additional moving costs
for residential moves include:
Removal and Reinstallation Expenses. The reasonable costs of disconnecting,
dismantling, removing, reassembling and reinstalling relocated household
appliances, and other personal property are reimbursable. Cost of altering or
modifying residential items of personal property, to adapt to the replacement
dwelling, cannot normally be a reimbursable incidental moving cost.
Transportation, Meals and Temporary Lodging. Transportation costs can include
special services such as the cost of an ambulance to transport relocates up to a
distance of fifty (50) miles.
The actual reasonable costs of meals and lodging can be paid if it is necessary for
the displacees to “eat out” or spend a night in a motel or hotel because of the
move. Lodging rates and meals must not exceed the routine rates paid by the
Commission to its employees when they travel on Commission business.
Receipts will be required to prove that such expenditures were made and the
actual costs involved.
Temporary lodging provisions are not to be used to house displacees, unless
extraordinary circumstances dictate otherwise, while other quarters are being
acquired or constructed, as comparable replacement housing must be available
for occupancy prior to the time the displacee is required to move.
Mobile Home Appurtenances. The reasonable cost of disassembling, moving and
reassembling any appurtenances attached to a mobile home, such as porches,
decks, skirting, and awnings, which were not acquired, anchoring of the unit, and
utility hookup charges.
Mobile Home Repairs. The reasonable cost of repairs and/or modifications so
that a mobile home can be moved and/or made decent, safe and sanitary.
Nonrefundable Mobile Home Park Entrance Fee. Nonrefundable mobile home
park entrance fees at the replacement site are reimbursable as incidental moving
costs. Reimbursement for such fees cannot exceed the entrance fee charged by
the selected comparable replacement mobile home park on which the
displacee’s relocation housing payment was based.
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7.08.06.00 Business, Farm and Nonprofit Organization Moving Cost Policies
7.08.06.01 Monitoring Moves. Moves that involve large moving cost payments must be
monitored at both the displacement and replacement sites by the Relocation
Agent, to the extent necessary to assure that the personal property involved was
actually moved (at the displacee’s expense) to their remaining or replacement
property and that the moving cost claim is reasonable and accurate. Displacees
are required to give advance written notice of the date the move will begin.
Failure to provide the written notice or to permit the Relocation Agent to
monitor both at the displacement and replacement sites can cause forfeiture of
moving payment eligibility. On-premise monitoring may be waived by the Right
of Way Manager in cases of non-complicated moves.
7.08.06.02 Furnished Rental Units. The owners of furnished multi-family dwellings or
furnished single family dwellings, which they do not occupy, can be reimbursed
for the cost of moving such furnishings as a routine business move. In an effort
to minimize administrative burdens in the relocation process, it is permissible to
reimburse the cost of moving the personal property for these types of
businesses using the moving schedule. The businesses would be additionally
eligible for other related moving costs such as reestablishment payment.
7.08.06.03 Partial Displacement. If the majority of a business property or farm operation is
being acquired as right of way, and/or if the right of way acquisition is so severed
that the business or farm operation cannot be continued, the owner can be paid
for moving all personal property used in connection with the business or farm
operation including items located outside of the right of way acquisition,
provided that such items are moved within a reasonable time after acquisition.
This is normally by the end of the displacee’s authorized possession of the
acquired area unless an extended time period is agreed upon in writing between
the Commission and displacee. The Case File must be documented to show why
the entire business or farm operation must be relocated when a partial
acquisition is involved.
7.08.06.04 Two or More Owners of Personal Property Involved. In instances where several
different persons or firms own personal property located on business or farm
real property being acquired by the Commission, each owner is entitled to the
cost of moving his or her items of personal property. Each must file a separate
claim.
7.08.07.00 Business, Farm Operations and Nonprofit Organization Moving Costs
Owners of displaced businesses, farm operations and nonprofit organizations can employ
commercial movers to relocate their personal property, conduct self-move, or have a combined
commercial and self-move.
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7.08.07.01 Commercial Mover. Moves in this category include all situations where the
qualified owners of displaced businesses, farm operation and nonprofit
organizations employ someone to move their personal property from real estate
acquired to a replacement site and claim reimbursement for their actual and
reasonable moving expenses. Applicable related moving expenses paid by the
displacee are reimbursable under this moving cost payment option.
If the displacee moves more than fifty (50) miles, the payment will be based on
the prorated portion of the moving costs that would have been applicable to a
fifty (50) mile move.
If there is a need for specialized moving equipment and/or expertise, it is
permissible for the owner to employ two or more commercial movers. It is also
permissible for such owners to conduct a move by employing a commercial
mover to move part of their personal property and move the balance by self-
move.
An inventory should be obtained from the displacee or the fixture and
equipment appraisal showing the items of personal property to be moved. It is
permissible for small items to be grouped into “lots” or to be “lumped” together
in some other type of identifiable unit such as specific number of bins, boxes,
barrels, etc. The Relocation Agent must make an on-site inspection of the items
involved and assure that the inventory is accurate. The Case Files must be
documented to show the inspection and photographs taken. Inventories should
be prepared at the earlier of the actual move or the acquisition of the parcel.
The Relocation Agent, working in concert with the business, must create moving
specifications insuring that there is a meeting of the minds how the personal
property will be disconnected (as necessary), packed, disconnected, moved,
reconnected and unpacked.
The Relocation Agent must obtain at least two (2) moving cost estimates from
qualified movers based on the inventory.
After the move is complete, the displacee must provide the Commission an
inventory of the items of personal property that were actually moved to his or
her remaining or replacement property. The post-move inventory must contain a
statement that all of the items listed therein were actually moved from the
project location.
The Relocation Agent must conduct an on-site review of the post-move
inventory to attest that is it reasonably accurate and that does not contain any
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items of real property that were retained and moved by the displacee. If the
post-move inventory is substantially the same as the pre-move inventory, the
displacee can be paid the actual moving costs. Eligible documented incidental
expenses may likewise be paid.
7.08.07.02 Self-Move. Qualified owners of any displaced businesses, farms or nonprofit
organizations have the option of conducting a self-move. Under this option, the
displacees will move their personal property and will not employ a commercial
mover to conduct the move.
Similar to a commercial move, the Relocation Agent must determine the
inventory, obtain moving bids and verify the move.
If the post-move inventory is substantially the same as the pre-move inventory,
the displacee may be paid the amount of the lowest moving cost bid, without
presenting additional documentation. They can also be paid eligible documented
incidental expenses.
7.08.07.03 Additional Business, Farm and Nonprofit Organization Moving Costs. Additional
moving costs relevant only to business, farm and non-profit organization moves
include:
Removal and Reinstallation of Equipment. The reasonable costs of
disconnecting, dismantling, removing, reassembling and reinstalling machinery,
equipment and other personal property can normally be included in moving cost
payments that are based on actual moving expenses.
The reasonable costs of making modifications to the personal property as
necessary to adapt it to the replacement structure, replacement site, or to the
utilities at the replacement site, are reimbursable incidental moving costs, but
must be preapproved by the Right of Way Manager. The cost of modifications to
adapt the utilities at the replacement site to serve the personal property are also
reimbursable.
Licenses. Any license, permit, fee, or certification required of the displaced
person at the replacement location. However, the payment may be based on the
remaining useful life of the existing license, permit, fee or certification.
Signs and Stationery. Actual reasonable cost of re-lettering signs and replacing
stationery on hand at the time of displacement that is made obsolete as a result
of the move are reimbursable. Generally, the cost of replacing stationery will be
limited to the amount of stationery the person had “on hand” at the date of the
move. In instances when a business has less than a “minimum run” of stationery
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on hand the Commission may, at its option, pay the full cost of the minimum
run. A pre-determined maximum expenditure should be agreed upon between
the Commission and the displaced person for these items of cost before a
payment commitment is made.
Search for Replacement Site. The owner of a displaced business, farm operation
or nonprofit organization can be reimbursed for the actual reasonable and
documented expenses incurred in searching for a suitable replacement property,
not to exceed $2,500. Applicable search expenses include:
• Transportation for search – based on actual fees charged for commercial
transportation or allowable RCTC employee mileage rate when a private vehicle
is used
• Meals away from home – not to exceed the rate paid to RCTC employees when
they travel on business
• Lodging away from home – not to exceed standard rates charged by motels and
hotels in the area
• The value of time actually spent in the search, based on the applicable and
reasonable salary or earnings of the person(s) conducting the search
• Fees paid to a real estate agent, broker or other consultant to locate a
replacement property, exclusive of any fees or commissions related to the
purchase of the site
• Time spent in obtaining permits and attending zoning hearings
• Time spent negotiating the purchase of a replacement site based on a
reasonable salary or earnings
All expenses claimed (except the value of time spent in the search) must be
supported by receipts or bills. Time spent will be documented with an invoice
that reasonably explains the time actually spent in the search.
Eligible search costs incurred prior to the initiation of negotiations are
reimbursable if they were incurred due to reasonable anticipation of the
property being acquired by the Commission, and the displacee becomes eligible
for a moving cost payment.
Purchase of Substitute Personal Property. If the item of personal property,
which is used as part of a business, nonprofit organization or farm operation, is
not moved but is promptly replaced with a substitute item that performs
comparable function at the replacement site, the displacee is entitled to
payment of the lesser of the following:
• The cost of the substitute item, including installation costs at the replacement
site, minus any proceeds from the sale or trade-in of the replaced item.
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• The estimated cost of moving and reinstalling the replaced item, based on the
lowest acceptable bid or estimate for relocating the item including incidental
costs, but excluding any allowance for storage and any allowance for modifying
the equipment, the utilities or the replacement structure. One bid or estimate is
acceptable in determining the estimated cost of relocating an item when a low
cost and/or uncomplicated move is involved.
This procedure should be recommended to displacees when it will cost more to
move an item than to replace it in kind or with a suitable substitute at the
replacement site. If displacee insists on moving the item, procedural advice
from the Right of Way Manager must be requested.
If a situation is encountered where the cost of moving an item that cannot be
replaced or suitably substituted is substantially more than its value, all facts
must be provided to the Right of Way Manager and procedural instructions
requested prior to making a commitment to the displacee. Facts submitted
must clarify the importance and/or necessity of the item in carrying out the
displacee’s business, farm or nonprofit operation.
Professional services. Professional services performed prior to the purchase or
lease of a replacement site to determine its suitability for the displaced person’s
business operation including, but not limited to, soil testing, feasibility and
marketing studies (excluding any fees or commission directly related to the
purchase or lease of such site). All expenses must be pre-approved by the Right
of Way Manager prior to the costs being incurred by the business.
Impact fees. Impact fees or one-time assessments for anticipated heavy utility
usage, as determined to be necessary by the Right of Way Manager.
Tangible Personal Property (49 CFR 24.301 (g) (14)). The owners of displaced
businesses, farm operations or nonprofit organizations (either partial or
complete displacement), who are eligible for a moving cost payment, can elect
not to move some, or all, of their personal property and be reimbursed for the
monetary loss they will experience by not moving such item provided.
The displacee made a bona fide effort to sell the items involved. The
Commission can determine that such effort is not necessary (items “traded in”
on replacements will be considered as having been sold). Displacees should not
be excused from this requirement unless it is rather obvious that the item(s)
involved have no resale value. When the Relocation Agent determines that an
effort to sell is not necessary, the Case File must be documented to justify the
decision.
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The tangible property loss payment will be the lesser of the following:
• The fair market value in place of the item, as is for continued use, less the
proceeds from its sale.
• The estimated cost of moving the item including disassembling and
reassembling, but with no allowance for storage or any allowance for modifying
the equipment, the utilities or the replacement structure.
The Right of Way Manager can approve any reasonable method of determining
the fair market value including, but not limited to, an independent appraisal
procured by the Commission.
The fact that displacees claim tangible property losses for some of the items
involved has no effect on their moving cost claim covering other items that were
relocated. The claim should be carefully reviewed to make sure cost of moving
items included as a tangible loss are not included in a moving cost claim. Items
for which tangible property losses are paid must not be included in moving cost
inventories, bids and estimates or relocation claim forms.
When payment for property loss is claimed for goods held for sale, the fair
market value will be based on the cost of the goods to the displacee, not in its
potential selling price.
7.08.08.00 Ineligible Moving Expenses
Expenses that are not eligible for reimbursement and/or payment under the Relocation
Assistance Program and must not be included in moving cost claims are as follows:
• The cost of moving structures, improvements or other real property in which the
displaced person reserved ownership
• Interest on a loan to cover moving expenses
• Loss of goodwill
• Loss of profits
• Loss of trained employees
• Any additional operating expenses of a business, farm or nonprofit organization
incurred because of operating in a new location, except as provided for previously in
this section.
• Personal injury
• The cost of preparing the application for moving and related expenses
• Any legal fee for representing the displacee in relocation matters, including appeals;
• Expenses for searching for a replacement dwelling
• Physical changes to the real property at the replacement location of a business, farm,
and nonprofit organization, except as provided for previously in this section
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• Cost for storage of personal property on real property owned or leased by the displaced
person except as provided for previously in this section
• Costs incurred to comply with OSHA, federal, state or local requirements except as
provided for previously in this section
• Refundable security and utility deposits
• The cost to represent the displaced person during the relocation process, the cost to
prepare a claim for the displaced person or any other costs for services that are
available from the Commission or its right of way consultants
7.09.00.00 BUSINESS REESTABLISHMENT
7.09.01.00 Eligible Reestablishment Expense (49CFR)
In addition to the moving payments previously discussed, a small business, farm or nonprofit
organization may be eligible to receive reestablishment payment not to exceed $25,000, unless
the Commission adopts an increased amount. This payment is for expenses actually incurred in
relocation and reestablishment at a replacement site and does not apply to part-time
businesses in the home which do not contribute materially to the household income as defined
previously.
7.09.01.01 Eligible Expenses. Reestablishment expenses must be reasonable and necessary,
as determined by the Commission. They may include, but are not limited to the
following:
• Repairs or improvements to the replacement real property as required by
federal, state or local law, code or ordinance
• Modifications to the replacement property to accommodate the operation or
make the replacement structures suitable for conducting the operation
• Construction and installation costs for exterior signage to advertise the
operation. If the displacee was paid for a sign at the displacement site, their
eligibility will be limited to the difference between what they were paid for the
sign and the amount necessary to replace it with a comparable sign. Salvage
value should be included as part of the replacement cost.
• Redecoration or replacement of soiled or worn surfaces at the replacement site,
such as paint, paneling or carpeting
• Advertising the replacement location. Payment of monthly advertisement costs,
after vacation of the project site, when the cost could not be avoided and the
business can demonstrate that it gains no benefit from the continuing ad. At no
time will advertisement costs be reimbursed if the contract for the ad was
initially committed to after the initiation of negotiations.
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In instances when the advertisement predominantly markets a phone number
and the number does not have to be changed as a result of the move, there will
be no payment under this subsection.
In instances when a phone number has to be changed and the advertisement
predominantly markets the phone number, the cost under this subsection may
be limited to reimbursement of call forwarding for one (1) year from the date of
displacement.
• Estimated increased costs of operation during the first two years at the
replacement site for such items as lease or rental charges, personal or real
property taxes, insurance premiums, and utility charges, excluding impact fees.
The Relocation Agent must verify that replacement sites were not available
which would allow the operation to relocate without increased operating costs.
The Case File must contain documentation of this verification.
• Other items that the Commission considers essential to the reestablishment of
the operation.
In no event, can the total reestablishment cost exceed $25,000, unless the
Commission chooses to adopt a policy increasing the limit.
7.09.01.02 Ineligible Expenses. The following is a non-exclusive listing of reestablishment
expenses not considered to be reasonable, necessary or otherwise eligible:
• Purchase of capital assets, such as office furniture, filing cabinets, machinery or
trade fixtures
• Purchase of manufacturing materials, production supplies, product inventory, or
other items used in the normal course of operation
• Interior or exterior refurbishment at the replacement site which are for aesthetic
purposes
• Interest on money borrowed to make the move or purchase the replacement
property
• Payment to a part-time business in the home which does not contribute
materially to the household income
7.10.00.00 FIXED/IN LIEU PAYMENT
The terms “fixed payment”, “in-lieu payment”, “displaced nonprofit organization payment”,
and “fixed payment for moving expenses, non-residential moves” are synonymous.
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7.10.01.00 Fixed/In Lieu Payments – Businesses
7.10.01.01 Payment Eligibility Requirements. The owner of any business which qualifies for
a moving cost payment may elect to claim a fixed payment for moving instead of
a moving cost payment based on actual cost plus related expenses.
The fact that the owners of a displaced business intend to purchase or establish
a different type of business after displacement has no effect on their eligibility
for a fixed payment.
If the owner of a business scheduled for acquisition sells the business to another
party after negotiations are initiated for the subject property, or after receipt of
a “Notice of Intent to Acquire”, they will not be eligible for fixed payment. The
new owner of the business, if eligible, could qualify for the payment if they
continue the business operation on the subject property after it is acquired.
In addition, the following five additional eligibility requirements must be
satisfied:
• The business contributes materially to its owner’s income during the two taxable
years prior to displacement. Displacees who claim fixed payments must provide
copies of their federal income tax returns for the two applicable tax years to
prove that the business operation meets the “material contribution” test, and
for use in computing the amount of their fixed payment. Only the portion of the
tax returns necessary to prove material contribution and average annual net
earnings is required. Income information provided by the displacees may be
verified with the IRS if for any reason the amount of net income appears
questionable.
• The business cannot relocate without substantial loss of existing patronage. To
qualify for a fixed payment, it must be determined that the business cannot be
relocated, or in case of a partial acquisition, that it can’t continue to operate on
the remaining property and it can’t be relocated without substantial loss of its
existing patronage. “Patronage” as used in the term “substantial loss of existing
patronage” relates to either “clientele” or “net earnings”.
When making a determination concerning the ability to satisfactorily relocate
the business, a business is presumed to suffer a substantial loss of its existing
patronage unless the Commission proves otherwise. Business owners are given
the benefit of the doubt concerning their ability to relocate. The presumption of
loss of existing patronage is outlined in the Final Rule of the Uniform Relocation
Act. Presumption, as required under those regulations, is not a statement that
the Commission assumes there will be a loss of earnings or patronage for any
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purpose other than compliance with applicable provisions of the Payment in Lieu
of Moving and Related Expenses.
• The business is not part of a commercial enterprise having more than three
other entities which are not being acquired by the Agency, and which are under
the same ownership and engaged in the same or similar business activities. A
business which does not “contribute materially” to the owner’s income is not
considered “another entity” and does not disqualify the owner from receiving a
fixed payment.
To be declared ineligible for a fixed payment, both the business being displaced
and the similar businesses not being acquired must have a common ownership.
Businesses and corporations are both considered to have common ownership
even though they are known by different business or corporate names, if their
owners are substantially the same.
• The business owns or rents personal property which must be moved in
connection with such displacement and for which an expense would be incurred
in such move and, the business vacates or relocates from its displacement site.
An estate is eligible for a fixed payment when the business owned by the estate
is displaced.
• The business is not operated at a displacement dwelling solely for the purpose of
renting to others.
7.10.01.02 Two or More Business Operations, Same Site and Same Owner. When several
business activities are located on the same property and operated by the same
party, which are closely related and complement each other, they will be
considered as one business. This is especially true if it is necessary to combine
the income from all of the activities to produce a reasonable business profit.
If the different activities are not related and if they do not complement each
other, they will normally be considered as separate businesses and the owner
will be entitled to separate fixed payments, provided that each business qualifies
on its own merits.
Other factors to be considered in making a multi-business determination is the
extent to which the same premises and equipment are shared, substantially
identical or interrelated business functions are carried out, business and financial
affairs are commingled, and how the entities are held out to the public and to
those customarily dealing with them, or if the same person or closely related
persons own, control or manage the affairs of the entities.
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7.10.01.03 Consideration of Acquisition Payments. Business owners who also own the
property on which the business is located cannot qualify for a fixed payment
when the right of way payment is adequate to pay for rearranging their
remaining facilities to enable them to continue the operation.
Business tenants of properties owned by persons who receive a right of way
settlement adequate to reasonably “cure” the impacts caused by the acquisition,
or who receive a part of the right of way consideration themselves, which is
adequate to “cure”, will not become eligible for this type of payment.
7.10.01.04 Payment Determinations. The owners of a displaced business who qualify for a
fixed payment are entitled to an amount equal to the average annual net
earnings of their business (adding back in any payments made to the owners
directly as salary), not to exceed a maximum payment of $40,000 or less than
$1,000.
The term “average annual net earnings” means one-half of any net earnings of
the business, before federal, state, or local income taxes have been deducted,
during the two taxable years immediately preceding the taxable year the
business is displaced.
If a loss occurred in one year and a gain in the other, the year in which the loss
was incurred should be considered as zero income when determining the
average net income for the two year period.
If a business has operated less than two full taxable years, the fixed payment can
be computed by projecting its net earnings to an annual rate.
Interest payments made by a business to the owners of the business cannot be
included as a part of the average annual net earnings of the business.
When unusual circumstances exist which indicate that a different period of time
(other than the two taxable years prior to displacement) should be used in
determining a business’ annual net earnings, seek approval from the Right of
Way Manager to use alternate periods.
7.10.02.00 Fixed/In Lieu Payments – Farm Operations
7.10.02.01 Payment Eligibility Requirements. A displaced farm operation may choose a
fixed payment, in lieu of the payments for actual moving and related expenses
and actual reasonable reestablishment expenses
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In the case of a partial acquisition, the farm operation will be considered to have
been displaced if the acquisition of part of the land caused the operator to be
displaced from the farm operation on the remaining land or the partial
acquisition caused a substantial change in the nature of the farm operation.
If a sharecropper or tenant is actually conducting the farming operation that is
being displaced, he/she is entitled to a fixed payment, even though the
landowner may share in the profits.
When minerals are being produced on a farm on a commercial basis and/or
when quarrying operations are so conducted, they are to be considered as a
separate businesses and not taken into consideration as a part of the farm
operation.
Farm operations owned by Estates are entitled to this type of payment.
7.10.02.02 Payment Determinations. The owners of a displaced farm operations who
qualify for a fixed payment are entitled to receive an amount equal to the
average annual net earnings of the farm operation not to exceed a maximum
payment of $40,000 or less than $1,000. (Subsection, Payment Computations).
7.10.03.00 Fixed/In Lieu Payments - Nonprofit Organizations
7.10.03.01 Payment Eligibility Requirements. A displaced nonprofit organization may
choose a fixed payment of $1,000 to $40,000 in lieu of the payments for actual
moving and related expenses and actual reasonable reestablishment expenses, if
the Commission determines that it cannot be relocated without substantial loss
of existing patronage (membership or clientele).
A nonprofit organization is presumed to meet this test unless the Commission
demonstrates otherwise. Any payment in excess of $1,000 must be supported by
certified financial statements for the two 12-month periods prior to the
acquisition.
7.10.03.02 Payment Determination. The amount to be used for payment is the average of
two years annual gross revenues less administrative expenses. Gross revenues
may include membership fees, class fees, cash donations, tithes, and receipts
from sales or other forms of funds collection that enables nonprofit
organizations to operate. Administrative expenses include rent, utilities, salaries,
advertising and other like items as well as fund raising expenses. Operating
expenses for carrying out the purposes of the nonprofit organization are not
included in administrative expenses.
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7.10.04.00 Time for Filing “Fixed Payment Claims”
The eligible owners of a displaced business, farm operation or nonprofit organization which is
displaced from the acquisition site can claim their fixed payment any time after (1) negotiations
are initiated for the real property involved (or Notice of Intent to Acquire), and (2) the
operation has been completely discontinued on the displacement property or the Commission
has acquired possession of the property (partial acquisitions), but no later than the end of the
18-month period. Subsequent occupants cannot be paid until after the real property involved
has been acquired by the Commission. Operations owned by subsequent occupants must be in
operation on the site at the time it is acquired by the Commission. If not, the owner is not
eligible.
7.11.00.00 PURCHASE PRICE DIFFERENTIAL PAYMENT
7.11.01.00 General Policy
Individuals and families displaced from dwellings including condominium and cooperative
apartments they owned and occupied for at least ninety (90) consecutive days prior to the
initiation of negotiations for the property are entitled to a replacement housing payment,
including a Purchase Price Differential Payment, to enable them to purchase replacement
housing. They must meet the payment eligibility requirements outlined in this section.
7.11.01.01 Advance Relocation Housing Payments. If eligible displacees request it, they may
receive their relocation housing payment at the escrow closing on the replace-
ment home, provided the following has occurred:
• The displacees’ request is made in writing.
• The displacees have entered into a Purchase and Sale Agreement or some other
written agreement to purchase for a specific and available DS&S replacement
dwelling.
• The displacees have a loan commitment from a qualified lender which will
enable them to purchase the replacement.
• The Commission has acquired the existing dwelling.
Advance relocation housing payments will not be processed unless and until all
four of the preceding requirements have been satisfied and the Case File
documented accordingly. If, in the opinion of the Right of Way Manager, it is in
the best interest of the Commission the Right of Way Manager may waive the
above requirements.
7.11.01.02 Replacement Housing Escrow Agreements. An Escrow Agreement is desirable in
making an advance payment if the seller of the replacement dwelling is
agreeable to closing the transaction and permitting the displacees to occupy the
dwelling prior to receipt of the entire purchase price, with the provision that the
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relocation payment will be placed in escrow for immediate delivery after the
displacees’ purchase and occupancy eligibility requirements are fulfilled.
7.11.01.03 Mortgage Waiver. Displaced homeowner-occupants may hold negative equity in
what is commonly referred to as "upside-down" mortgages where the fair
market value of the property (or just compensation) is less than the outstanding
debt (the mortgage). In these circumstances, an administrative settlement
negotiated to acquire the property may eliminate the replacement housing
payment otherwise available to the homeowner-occupant to assist in relocating
to a replacement dwelling. The FHWA has established a waiver for these
situations. This waiver is in effect for FHWA through December 31, 2016 unless
otherwise extended or rescinded in writing by FHWA Office of Real Estate
Services. Use of the waiver for projects with other funding agencies requires
pre-approval of those agencies.
The waiver is applicable only to those situations where displaced homeowner-
occupants have negative equity in the property being acquired. This waiver
eliminates the normal requirement that the replacement housing payment
calculation use the amount finally determined and paid as just compensation for
the property. Instead, the replacement housing payment calculation uses the
appraisal-based just compensation amount in the original offer to acquire, even
though the final just compensation amount may have been increased through an
administrative settlement that takes into account the amount by which the
mortgage/lien balance exceeds the fair market value of the property acquired.
7.11.02.00 Payment Eligibility Requirements
7.11.02.01 Ownership and Occupancy Requirements. The individual or family being
displaced must have owned and occupied their dwelling unit for at least ninety
(90) consecutive days immediately prior to the initiation of negotiations for the
subject property or, if they are provided a “Notice of Intent to Acquire” by the
Commission, they must have owned and occupied it for at least ninety (90)
consecutive days prior to the date they actually vacated the property if it was
vacated prior to the actual initiation of negotiations. When a “Notice of Intent to
Acquire” is used, the ninety (90) day period is measured from the date that
negotiations are initiated for the subject or from the date that it was vacated by
the owner-occupant, whichever is earlier.
7.11.02.02 Sale of Property After Initiation of Negotiations. Displaced owner-occupants will
not be eligible for a relocation housing payment if they sell the subject dwelling
to any party other than the Commission after the initiation of negotiations for
the parcel. The “other party” who purchases the dwelling will not be eligible for
the payment.
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7.11.02.03 Displacement Must Be Necessitated By Right of Way Acquisition. The
displacement must be necessary due to the actual acquisition of the subject
dwelling by the Commission, or, due to its being rendered legally or physically
landlocked and uninhabitable by the acquisition.
7.11.02.04 Owner’s Principal Residence. A replacement housing payment cannot be made
unless the dwelling acquired as right of way by the Commission or landlocked, is
the owner’s permanent or customary and usual residence and/or legal place of
residence.
7.11.02.05 Timing of Replacement Dwelling Purchase. The displacees must purchase and
occupy a replacement dwelling which meets DS&S standards within a one-year
period beginning on the later of the following:
• The date the displacees or their Escrow Agent receives payment from the
Commission for the acquired dwelling or in case of condemnation, the date the
final judgment is paid into court.
• The date the displacees move from the displacement dwelling.
7.11.02.06 Displaced Owner Occupies Previously Owned Dwelling as Replacement.
Displaced owner-occupants of a residential dwelling unit who move to and
occupy a DS&S replacement dwelling that they had previously owned may be
eligible for a replacement housing payment, provided that the current value of
their interest in the replacement dwelling unit is equal to the entire amount paid
for the subject property plus their computed replacement housing payment
offer.
7.11.02.07 Displacee Purchased Replacement in Partnership With Other Parties. If qualified
displacees purchase their replacement dwelling in partnership with other parties
who did not own an interest in and occupy the subject dwelling, they must invest
an amount equal to the entire amount paid for the subject property plus the
computed replacement housing payment in the purchase of their interest in the
replacement.
7.11.03.00 Amount of Payment
The replacement housing payment for an eligible ninety (90) day homeowner-occupant may
not exceed $31,000. The payment shall be the sum of the three components of the
Replacement Housing Payment for ninety (90) day Owner Occupants:
• Price Differential. The amount by which the cost of a replacement dwelling exceeds the
acquisition cost of the displacement dwelling, and
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• Interest Differential. The increased interest cost and other debt service costs which are
incurred in connection with the mortgage(s) on the replacement dwelling as described
below; and
• Incidental Closing Costs. The reasonable expenses incidental to the purchase of the
replacement dwelling, as described below.
In some instances the addition of incidental closing or increased interest costs to the
basic replacement housing payment will cause the total to exceed $31,000. Situations
will also be encountered in which the Commission will not be able to make the required
comparable DS&S replacement housing available to a displacee within the maximum
payment limitation. When these situations are encountered, advise the Right of Way
Manager, in writing, and request authority to pay the total under the Last Resort
Housing Program.
Replacement housing claims in excess of $31,000 should include a notation of the back
of the form “authority to process payment in excess of $31,000 granted by the Right of
Way Manager letter dated________.”
Eligible owner-occupants who rent a replacement dwelling instead of purchasing DS&S
replacement housing are entitled to a rent supplement payment. The rent supplement
cannot exceed $7,200 unless there is a qualification for Last Resort Housing.
7.11.04.00 Payment Computations
A replacement housing payment must be for the lesser of an amount equal to the difference
between the final amount received by eligible displacees in payment for their displacement
dwelling (prior to any deductions covering the value of salvage retained by the owners) and
either the actual amount paid for a DS&S replacement dwelling by the displacees (not including
incidental closing costs and increased interest payments), or the amount determined by the
Commission as necessary to purchase the most nearly comparable DS&S replacement dwelling
available. Determination of the most comparable dwelling will be made by the Relocation
Agent. The payment, together with authorized incidental closing costs related to the purchase
of the replacement and increased interest costs, must not exceed $31,000.
7.11.04.01 Mobile Homes. If the replacement dwelling is a mobile home, the cost of
furniture and appliances should not be included as part of the “consideration
paid”, even though they were purchased with the mobile home as part of a
“package” unless such furniture and/or appliances are built-in and are
considered to be an integral part of the mobile home.
7.11.04.02 DS&S Deficiency Corrections. If a displacee purchases a replacement dwelling
that has DS&S deficiencies and after purchase corrects those deficiencies, the
documented actual expenses may be considered as having been spent in the
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purchase of the property. The actual cost of correcting the DS&S deficiencies can
be added to the purchase price of the replacement. However, under no
conditions would a displacee receive more than the differential between a
comparable DS&S dwelling and the acquired dwelling.
7.11.04.03 Improvements to Make Functionally Equivalent. Displacees who acquire a
replacement dwelling that is not functionally equivalent to their displacement
dwelling can include, as a part of the replacement purchase price, any
documented expenditure they make in improving the replacement to a level of
functional similarity.
The cost of improvements to the replacement dwelling, other than those
required to eliminate DS&S deficiencies or replace functionality, cannot be
included as a part of the purchase price of the replacement dwelling.
7.11.04.04 Previously Owned Dwelling. Eligible displaced residential owner-occupants who
move to and occupy a previously owned DS&S dwelling as their replacement
dwelling will be entitled to a replacement housing payment. The payment will be
based on the lesser of the difference between their payment for the
displacement property and the adjusted price of the selected comparable that
was used in computing their replacement housing payment offer or the current
value of the previously owned replacement dwelling.
7.11.04.05 Determining Acquisition Amount. For a single-family dwelling, the entire offer
made by the Commission to the owner-occupants for their residential property is
used. For situations where there are multi-family residences, land in excess of
normal residential standards, properties with residential and business
operations, and other specialty situations, the Relocation Agent must work in
conjunction with the appraiser to carve-out the acquisition amount appropriate
to be used for the replacement housing payment.
7.11.04.06 Multiple Occupancy of Same Single-Family Dwelling Unit. The procedure
discussed herein is applicable in computing payment offers for the eligible
occupants even though some of the families or separate individuals involved do
not meet occupancy time requirements or for some other reason are not eligible
for a replacement housing payment.
If two or more eligible individuals and/or families which occupy the same single-
family dwelling maintain separate households, they will be entitled to separate
replacement housing payments.
If the individuals and/or families do not maintain separate households, they will
be entitled to only one joint replacement housing payment if a comparable, or
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better, DS&S replacement dwelling is available to them. The one payment can be
prorated between eligible individuals and/or families if they choose to relocate
into separate DS&S replacement dwellings. If a comparable DS&S dwelling is not
available which will enable them to relocate together, they will be entitled to
separate replacement housing payments.
7.11.04.07 Multi-Unit Dwelling Complexes. If the owner of a multi-unit dwelling occupies
one of the units therein being acquired, their maximum replacement housing
payment will be computed as follows:
• An appraiser must prorate the Commission’s total offer for the property to
determine the portion that is chargeable to the specific unit occupied by the
owners.
• The most nearly comparable dwelling must be determined. If the same type
complex is not available, the most nearly comparable complex of the next lowest
density that is available can be used.
• If the selected comparable is a single-family residence, deduct the prorated
portion of the offer that is chargeable to the occupied unit from the adjusted
price of the selected comparable. The resulting figure will be the maximum
replacement housing payment.
• If the selected comparable is a multi-unit complex, prorate the adjusted price of
the comparable to determine the portion that is chargeable to the specific unit
that is most comparable to the unit occupied by the displacees in the acquisition
dwelling complex. Deduct the prorated portion of the offer that is chargeable to
the unit occupied by the displacees in the acquisition complex from the prorated
portion of the adjusted price of the comparable to determine the maximum
replacement housing payment. To qualify for the computed replacement
housing payment, the displacees must spend an amount equal to the prorated
value assigned to the occupied unit plus the total replacement housing payment.
7.11.04.08 Mobile Homes. If the displaced owner of a mobile home classified as real
property qualifies for a replacement housing payment covering both the mobile
home and supporting land area, compute the maximum payment similar to
owner occupied single family dwellings. If a comparable DS&S mobile home
and/or site is not available, it will be necessary to calculate the payment on the
basis of the next higher type of dwelling that is available and meets applicable
DS&S standards.
The determination of whether a mobile home is, or is not, real property must be
determined during the appraisal process and approved by legal counsel.
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The displaced owner-occupant of a mobile home which is located on land
belonging to another party can be paid a replacement housing payment covering
the mobile home, but not the land, when a mobile home has been determined
to be real property, the owner has owned and occupied the mobile home while
located on the site from which it is being displaced for the required ninety (90)
day period and all other eligibility requirements have been met.
The owner of the mobile home could also be paid the equivalent to a rental
subsidy payment covering the site if they meet the eligibility requirements for
the separate payments involved.
The displaced owner-occupant of a mobile home can be paid a replacement
housing payment covering the land on which the mobile home is located when a
mobile home was not considered to be a part of the real property and was not
acquired, the mobile home was occupied by the displacee on land he/she also
owned (subject site) for at least ninety (90) consecutive days prior to the
initiation of negotiations and all other eligibility requirements have been met.
7.11.04.09 Insurance Proceeds Due to Catastrophic Occurrence. To the extent necessary to
avoid duplicate compensation, the amount of any insurance proceeds received
by a person in connection with a loss to the displacement dwelling due to a
catastrophic occurrence (fire, flood, etc.,) shall be included in the acquisition cost
of displacement of dwelling when computing the price differential.
7.11.04.10 Owner Retention of Displacement Dwelling. If the owner retains ownership of
his or her dwelling, moves it from the displacement site and reoccupies it on a
replacement site, the purchase price of the replacement dwelling shall be the
sum of:
• Cost of moving and restoring the dwelling in a condition comparable to that prior
to the move
• The cost of making the unit a decent, safe, and sanitary replacement dwelling
• The current fair market value for residential use of the replacement site unless
the claimant rented the displacement site and there is reasonable opportunity
for the claimant to rent a suitable replacement site
• The retention value of the dwelling, if such retention value is reflected in the
“acquisition cost” used when completing the replacement housing payment.
The combined cost of relocation, rehabilitation, and improvement to DS&S
standards are eligible for reimbursement to the extent they do not exceed the
maximum price differential entitlement based on comparable replacement
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properties. This may include construction features such as garages if they cannot
be moved.
7.11.04.11 Condemnation Cases. The same procedure is applicable in carrying out the
various phases of the Relocation Program when condemnation is involved,
except when the owner of a residential property being acquired through
condemnation is entitled to a replacement housing payment. Displacees who are
entitled to replacement housing payments and whose properties are being
acquired through condemnation can enter into a Condemnation Agreement and
receive their replacement housing payment prior to final adjudication of the
condemnation case. The agreement can be signed after the deposit of just
compensation and after the displacees have purchased a replacement dwelling.
Condemnation agreements are not applicable when a owner elects to rent
rather than purchase replacement housing. When a condemnation agreement is
used, the replacement housing payment must be recomputed after the court
order for probable Just Compensation has been ordered and prior to execution
of the agreement, and shall be the difference between the portion of the
probable Just Compensation that is chargeable to the subject residential
property and the actual amount paid for a DS&S replacement dwelling by the
displacees or the difference between the probable Just Compensation and the
adjusted price of the most nearly comparable DS&S replacement housing
available, whichever is the less.
The displacee can also wait until final adjudication of their condemnation case
and then file a replacement housing claim. If the owners chose to wait until final
settlement of their condemnation case before filing a claim for their
replacement housing payment, deduct the portion of the final legal settlement
that is chargeable to the residential property from the adjusted price of the most
nearly comparable DS&S replacement available as determined on the
“Replacement Housing Comparison Record” and in a separate computation,
deduct the same portion of the final legal settlement from the amount actually
paid for the DS&S replacement property purchased and occupied by the
displacees. The displacees are entitled to a replacement housing payment equal
to the lesser of these two computed figures.
Owner-occupants whose residence was acquired by condemnation can be
reimbursed for their eligible incidental closing costs and paid any increased
interest payment without the need for a condemnation agreement.
7.11.04.12 Owner-Occupants with Partial Ownership Interest. When a dwelling is owned by
several persons and occupied by one or more owners, the replacement housing
payment is the lesser of the following:
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• The difference between the owner-occupant’s share of the acquisition cost of
the acquired dwelling and the actual cost of the replacement dwelling
• The difference between the total acquisition of the acquired dwelling and the
amount determined by the Commission as necessary to purchase a comparable
dwelling
When the partial owner-occupant purchases a replacement that is less costly
than the estimated replacement cost and is DS&S for the owner-occupant, then
“spend to get” is that party’s share in the acquisition price plus the price
differential.
7.11.05.00 Replacement Housing Comparison Record
7.11.05.01 When the Record is Prepared. The Relocation Agent must make eligible owner-
occupants a written replacement housing payment offer at the initiation of
negotiations. A Replacement Housing Comparison Record will be used in
establishing this offer.
For parcels that are included in the critical path, the Replacement Housing
Comparison Record should be completed during the period that the appraisals of
the parcel are being reviewed so that negotiations can be initiated immediately
after a negotiating figure is approved.
7.11.05.02 Selection of “Comparables”. In every case, the comparables used in the
Replacement Housing Comparison Record must meet the following
requirements:
• Is currently available for purchase on the market
• Meet DS&S requirements
• Meet the definition of comparable replacement dwelling
• Be the three dwellings that are most nearly “comparable” to the subject than
any other available properties which meet the above requirements
Comparables must be “functionally equivalent” to the displacement dwelling
with particular attention to the number of rooms and gross living space. The
comparable must perform the same primary function as the displacement
dwelling and enable the displacees to maintain a similar lifestyle in the dwelling
as before displacement.
It is desirable that the comparable replacement be physically similar to the
subject in regard to age, type of construction, room arrangement, or minor
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attributes. Gross living space is based on outside measurements excluding
garages and unfurnished areas.
7.12.00.00 INCIDENTIAL CLOSING
7.12.01.00 Definition of Incidental Closing Costs
The incidental closing cost payment is the amount necessary to reimburse qualified displacees
for the actual and reasonable costs incurred by them incident to the purchase of their
replacement dwelling.
Reimbursable incidental closing costs may include the following items, if the amounts involved
are reasonable and if such costs are normally paid by the buyer.
• Legal, closing and related costs including title search, preparing
• Conveyance contracts, notary fees, surveys, preparing drawings or plats, and charges
incident to recordation
• Lender, FHA or VA appraisal fees
• Lender, FHA or VA application fees
• Inspections fees, such as structural inspection, termite inspection, asbestos inspection
• Credit report fees
• Title insurance, not to exceed the costs that would have been involved in the purchase
of the selected comparable on which the RHP was based
• Escrow fee, based on comparable
• Sales or transfer tax (not to exceed the costs for a comparable replacement dwelling)
• Professional home inspection, certification of structural soundness, and termite
inspection
• Other costs which the Right of Way Manager agrees to be incidental to the purchase
Incidental closing costs must not include any prepaid expenses, such as, prepaid taxes, prepaid
insurance or prepaid interest. The costs incurred in securing mortgage financing in cases where
there is not mortgage on the property acquired and any additional costs in securing large
mortgage on the replacement dwelling than existed on the acquired property are not
reimbursable. Appraisal fees and survey fees may, however, be reimbursable.
The reasonable cost of transferring a mortgage when an existing mortgage on a replacement
property is assumed by a displacee is eligible for reimbursement as incidental closing costs.
Reasonable refinancing expenses paid by displacees who retain and move their existing
dwellings to their remaining land or who build replacement dwellings on their remaining
properties are reimbursable. One-time mortgage default insurance premiums are reimbursable.
Loan service fees and points and loan origination fees can be included in increased interest and
down payment assistance on a limited basis.
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7.12.02.00 Payment Eligibility Requirements
Any displacee who meets the eligibility requirements for either a replacement housing
payment, or down payment assistance is entitled to an incidental closing cost payment.
7.13.00.00 INCREASED INTEREST PAYMENT
7.13.01.00 General Policy
Increased interest payments (interest rate differential) are available to eligible displaced long
term owner occupants of residential property. These payments are intended to compensate
owners for the additional expense that may be encountered due to a higher interest rate for a
new mortgage on a replacement residential property.
7.13.02.00 Payment Eligibility Requirements (49 CFR)
To be eligible, all of the following conditions must exist:
• The displacee must have been an owner-occupant for more than ninety (90) days prior
to the date of initiation of negotiations or the date of the Notice of Intent to Acquire.
• The displacee must have purchased and occupied a suitable replacement dwelling
within the prescribed time limits.
• The mortgage or contract of sale must be bona fide and have been a valid lien for not
less than ninety (90) days prior to the date of initiation of negotiations or date of the
Notice of Intent to Acquire. All mortgages shall be used to compute the payment.
• There must be a mortgage or contract of sale on the replacement dwelling.
• Mortgages or similar notes used to purchase mobile homes are mortgages for the
purpose of this procedure.
• Temporary construction loans and short-term notes covering the period relocation
payments are being processed will not be considered on any increased interest
computation.
7.13.03.00 Payment Computations
The payment will be the amount which will reduce the balance on a new mortgage to an
amount which could be amortized with the same monthly payment for principal and interest as
that for the mortgage(s) on the displacement dwelling.
7.13.03.01 When to Compute Payments. Displaced owners must be advised of the
estimated amount of this payment and conditions that must be met to receive it.
This must be done as soon as owners provide the necessary information on their
existing mortgage to the Relocation Agent. Displaced owners will receive an
eligibility notice which advises them to contact the Relocation Agent
immediately after they have signed a contract to purchase their replacement
residence to obtain an estimate.
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7.13.03.02 Payments Computed By Whom. The Relocation Agent is authorized to compute
increased interest payments and have approved by the Right of Way Manager.
7.13.03.03 Payment Computation. Displacees are entitled to an increased interest payment
if the interest rate applicable to the mortgage on their replacement property has
been increased above the rate charged on the mortgage on their existing
residential property. Increased interest payment computations are based on the
remaining term of the existing mortgage or on the actual term of the new
mortgage, whichever is less, and on the unpaid balance of the existing mortgage
or on the actual amount of the new mortgage, whichever is less.
Displacees are also entitled to reimbursement for the actual amount they paid as
“points” on the amount refinanced and for any amount paid by them as an
origination or service fee.
Displacees must provide Relocation Agent with the following documents:
• For estimates or payments, provide a copy of all Notes and Deeds of Trust and
current payoff amounts on existing mortgages on the subject property.
• For payments, provide a copy of the loan application and commitment.
• For payments, provide a copy of all Notes and Deeds of Trust on new mortgages
on the replacement property.
• For payments, a copy of estimated closing costs, for payments, a copy of the
closing statement covering the replacement property purchase which clearly
reflects any origination or loan service fees and/or any “points” paid by the
displacee.
7.14.00.00 RENTAL SUBSIDY PAYMENTS
7.14.01.00 General Policy
Tenants and owners who rent rather than purchase replacement housing, are entitled to a
rental subsidy payment if they meet the payment eligibility requirements outlined in this
section.
Payments for displaced tenants are based either on the increased monthly rental costs above
the rental they were paying for the unit acquired that they would have to pay over forty two
(42) months for an available comparable DS&S replacement dwelling unit, or the increased
rental for forty (42) months that the tenants actually pay for their replacement dwelling unit,
whichever is less.
For owners who rent rather than purchase a replacement dwelling, the payment will be based
on either the difference between the economic rental fee of the subject dwelling and the actual
rental fee charged for the most nearly comparable DS&S replacement dwelling available, or the
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difference between the economic rental fee and the actual rental fee paid for the replacement
unit, whichever is less.
Rental subsidy payments cannot normally exceed $7,200. The total amount due will be paid in
one lump sum (assuming the displacement property has been vacated) unless the Commission
determines that it should be made in installments.
7.14.02.00 Payment Eligibility Requirements for Tenants
7.14.02.01 Prior Occupancy Requirements. The individual or family being displaced must
have rented and legally occupied the subject dwelling unit for at least ninety (90)
consecutive property, or if they are provided a “Notice of Intent to Acquire”,
they must have rented and occupied it for at least ninety (90) consecutive days
prior to the date they actually vacated the property if it was vacated prior to the
actual initiation of negotiations.
If any doubt exists concerning the actual length of time tenants occupied a
subject dwelling, the date of occupancy should be confirmed by their landlord
and the file documented accordingly
When an owner-occupied mobile home that has been classified as personal
property and must be removed from a rented site, the site occupancy date is the
controlling factor. Displacees must have occupied a mobile home on the subject
site for the required ninety (90) day period.
If both the mobile home and site are rented, the displacees’ rental subsidy
payment will be based on the rental fee of both the mobile home and site for the
required ninety (90) day period. Consecutive occupancy of other sites (within the
displacement property) can also be considered when determining the displacees’
occupancy period.
In determining the applicable occupancy period of a displacee in a multi-unit
residential complex, it is permissible to consider consecutive occupancy of other
units which are being acquired or demolished due to the Commission project.
7.14.02.02 Occupancy Required At Initiation of Negotiations. The tenants must have been
in legal occupancy of the subject dwelling unit at the initiation of negotiations for
the parcel acquired, or if they are provided a “Notice of Intent to Acquire”, at the
time they receive the notice.
7.14.02.03 Timing for Replacement Occupancy. The displacees must rent and occupy a
DS&S replacement dwelling within one year after they move from the subject
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dwelling. This one-year time period may be extended, with Right of Way
Manager approval, for good cause.
7.14.02.04 DS&S Standards. A displacee must rent and occupy a replacement dwelling that
meets decent, safe and sanitary standards, to be eligible for a rental subsidy
payment.
7.14.02.05 Sleeping Room. Displaced tenants of sleeping rooms who meet the payment
eligibility requirements are entitled to a rental subsidy payment.
7.14.03.00 Payment Eligibility Requirements for Owners
Owners who occupied their displacement dwelling for at least ninety (90) consecutive days and
who elect to rent rather than purchase a replacement dwelling are eligible for a rental subsidy
payment if they meet the same requirements as a tenant, except that the one-year period
allowed for renting and occupying a replacement will begin on the later of the following
occurrences:
• The date on which the owners, or their Escrow Agent, receive their right of way
payment from the Commission when negotiated settlements are involved.
• In case of condemnation, the date the court ordered probable Just Compensation,
stipulated settlement, or jury award is paid into court, or the date on which they move
from the displacement dwelling.
If the displacees later decide to purchase a replacement within the original one-year period,
they can do so and claim a replacement housing payment. The amount of any rental subsidy
payment previously paid must be deducted from the replacement housing payment, incidental
closing costs and increased interest payment.
7.14.04.00 Payment Computations
7.14.04.01 Existing Rental Rate. The existing rental rate is determined by using the average
monthly rental rate being paid by displacee during the three months
immediately prior to the month in which the Commission initiated negotiations
for the subject property or when the tenant received a Notice of Intent to
Acquire and vacated the subject unit prior to the initiation of negotiations,
whichever came first. The existing rental rate shall include the any rent
supplements supplied by others (such as government subsidies), when, by law,
such supplement is to be discontinued upon vacation of the subject property.
A copy of the tenant’s lease agreement or rent receipt should be filed in the Case
File.
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7.14.04.02 Economic Rental Rate. The term “economic rent” as used herein is the normal
monthly rental fee being paid on the open market for similar dwelling units
within the area of displacement. If the displacees’ existing average monthly
rental rate is substantially less than the economic rent applicable to the
displacement unit, the economic rent will be used in the rental supplement
payment computations in lieu of the “average monthly rental rate.” This policy
should not be applied if an unfair hardship is placed on the displacee.
7.14.04.03 Rental Fee Charged for Most Nearly Comparable Unit. Displacees should be
offered the same type of replacement unit as that from which they are
displaced; however, this not mandatory if it is not practical to do so if the
selected replacement is functionally equivalent to the displacement unit.
7.14.04.04 Utility Services Adjustments. Unless all utilities are provided by the landlord in
both the displacement dwelling and in the selected comparable, the estimated
average monthly costs of those utilities must be added to the basic monthly cost
of the comparable should a comparable be selected which provides the same
utilities as the subject dwelling unit.
Utility cost estimates can be determined through one of the following ways:
• Average of actual utility costs over the past twelve (12) month period, based on
bills paid
• Average utility cost from the utility company based on square footage and
number of family members
• If the annual utility costs are known for another unit, it may be practical to
estimate the cost of the utility at the other unit by comparing the two units and
adjusting the known costs for difference in unit size, physical features, appliance,
etc.
7.14.04.05 Furniture Provided by Landlord. The general procedures in the preceding
subsection relating to utilities also apply when furnishings are provided by the
landlord in the displacement dwelling, but not in the selected comparable. If
possible, comparables should be selected which provide the same furnishings to
the displacee.
Furnishings can be provided to the displacees at the replacement site in either of
the following two methods that is less costly:
• Rent comparable furnishings and add the monthly rental of the furnishings to
the monthly rental of the replacement dwelling when computing the rental
supplement offer. Refundable deposits on such rentals are not compensable.
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• If rental furnishings are not available, or if the rental procedure is more
expensive over a forty two (42) month period, add the cost of purchasing
comparable used furnishings to the rental subsidy offer.
7.14.04.06 Rental Subsidy Computation Sheet. A Rental Subsidy Computation Sheet shall be
developed and used in computing all rental subsidy payment offer.
The computation sheet should be completed during the time appraisals of the
subject property are being reviewed or soon after the negotiations are initiated
for the property. A written rental subsidy payment offer must be made to
eligible displacees within forty (40) days after such negotiations are initiated.
The Relocation Agent should complete the computation sheet. The completed
form must be approved by the Right of Way Manager.
The rental subsidy payment offer, not to exceed $7,200, is computed by
subtracting the lesser amount arrived at in any option below, from the total
amount necessary to rent the most nearly comparable DS&S replacement
dwelling unit for the next forty two (42) months. Rental subsidy payment
computations are as follows:
• Forty two (42) times the average monthly rental paid plus utilities by the
displacee during the last three months
• Forty two (42) times the economic monthly rental rate plus utilities. If the
average monthly rental being paid substantially less than the economic rate, or,
if an owner elects to rent rather than purchase a replacement
• Forty two (42 times) 30% of the displacees monthly income
If the only comparable DS&S replacement rental unit available required rental
subsidy payment in excess of $7,200 or if there are no acceptable comparables
available in the area, the entire payment must be made under the Last Resort
Housing Program. This program will not be applied to owner-occupants who
desire to rent rather than purchase replacement dwellings if comparable DS&S
replacement dwellings are available to them for purchase through the
replacement housing payments.
If a owner elects to use rental subsidy as a down payment, compute a
replacement housing payment. The down payment assistance cannot exceed the
computed RHP amount.
7.14.04.07 Pets or Service Animals. It is preferable that selected comparables also permit
pets, however, it is not mandatory if the most nearly comparable does not
accept pets.
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Service Animals are not considered pets under this policy. Comparables must be
selected which will accept displacee’s Service Animal.
7.14.04.08 Disabled Displacee. To meet DS&S requirements, the selected replacement
dwelling unit for a disabled person must be free of any barriers which would
preclude reasonable ingress, egress and use of the unit by the displacee.
If a suitable replacement cannot be located which will accommodate the
displacee, it is permissible to increase the monthly rental of an otherwise
comparable replacement unit to compensate the owner for the cost of
rearranging the unit as necessary to meet DS&S standards.
7.14.04.09 Multiple Occupancy of Same Dwelling Unit. If a comparable or better DS&S
replacement dwelling unit is available for rent within the maximum $7,200 rental
subsidy payment limitation when two or more eligible individuals or families
who do not maintain separate household are displaced from the same single-
family dwelling, only one rental subsidy payment will be made.
If comparable or better DS&S unit is not available, each eligible individual and/or
family involved will be entitled to a separate rental subsidy payment offer.
7.14.04.10 Short Term or Subsequent Occupants. If an affordable replacement is not
available for a short term tenant or subsequent occupant, it will be necessary to
present the displacees a rental subsidy payment offer if the comparable rent,
including utilities, exceeds the monthly rental, including utilities, of the displaced
dwelling.
7.14.04.11 Moves after Original Displacement. A displacees’ payment amount will not be
recomputed or changed if they move even though they pay a different monthly
rental fee, either higher or lower, for the subsequent replacement unit. This
policy applies regardless as to whether the subsequent move occurs within, or
after, the one-year period.
7.14.04.12 Rental Fee for Replacement Unit Increased by Landlord. If the monthly rental
fee for an occupied replacement rental unit is increased after the displacees
receive their rental subsidy payment, no additional payment will be made by the
Commission to cover the increased monthly rental expenditure. This policy
applies regardless of whether the rental fee was increased within the first year
after the original displacement or in subsequent years.
7.14.04.13 Displacee Displaced from Conventional Dwelling or Mobile Home Becomes
Occupant of Rest Home. The payment is computed by using the portion of the
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monthly rest home fee chargeable to basic “room rent” and utilities as the
replacement rental fee.
7.14.04.14 Conversion to Purchase. Displaced tenants and owners who rent their original
displacement dwellings can within the one-year time period purchase and
occupy a replacement dwelling and claim a down payment assistance, however,
the amount of any previously paid rental subsidy must be deducted from the
down payment assistance.
Owners who originally rent their replacement dwelling can, within the one-year
period, purchase and occupy a replacement dwelling and claim a replacement
housing payment. Any previously paid rental subsidy payment will be deducted
from the replacement housing payment.
7.15.00.00 DOWN PAYMENT ASSISTANCE
7.15.01.00 General Policy
Displaced tenants and owners who elect to purchase in lieu of renting a DS&S replacement
dwelling, and who actually do so, are entitled to a down payment assistance if they meet the
eligibility requirements discussed in this section.
The payment amount is equal to their computed rental subsidy payment and can be applied
towards a down payment or reimbursable incidental costs, the total of which cannot normally
exceed $7,200.
The payment will be based on the lesser of (1) the amount of the computed rental subsidy plus
incidental closing costs, or (2) the amount the displacees actually paid down in the purchase of
their replacement dwelling plus eligible incidental closing costs.
Any down payment assistance in excess of $7,200 must be specifically authorized by Right of
Way Manager as a Last Resort Housing Payment.
7.15.02.00 Last Resort Payment Assistance for Tenants
Last resort down payment assistance is available to displaced tenants only when there are no
comparable DS&S replacement rental dwelling units available on the market; or the only
comparable DS&S replacement units available would require a rental subsidy payment in excess
of $7,200.
Last resort down payment assistance available to tenants cannot exceed the amount the
displacee would be entitled to as a rental subsidy payment based on the monthly rental of the
most nearly comparable DS&S replacement dwelling unit available on the market including
incidental closing costs.
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7.15.03.00 Last Resort Payment Assistance for Owners
Payments made to displaced owners under the provisions of last resort housing cannot exceed
the amount to which they would be entitled if they rented the most nearly comparable DS&S
replacement dwelling available. Payments may not exceed what the displacee would receive if
they were a ninety (90) day owner for a replacement housing payment.
7.15.04.00 Payment Eligibility Requirements
Eligibility requirements include all of those requirements previously stated for rental subsidy
payments.
• Down payment assistance must be applied to purchase price of replacement
• Replacement dwelling must be acquired and occupied within one year
7.15.05.00 Payment Computations
In order to determine the amount of down payment assistance, compute the rental subsidy
payment to determine the maximum rental subsidy payment the displacee could be entitled to.
If the computed offer is $7,200 or less, their down payment assistance will be limited to $7,200
including incidental expenses.
If the rental subsidy offer exceeds $7,200, payment may be made under the provision of last
resort and will be limited to the computed rental subsidy amount including incidental costs.
7.15.06.00 Down Payment Claims
Down payment claims will not be filed until an eligible displacee has purchased and occupied a
DS&S replacement dwelling unless advance payment is approved.
Down payment assistance claims from owners and tenants must be filed no later than six (6)
months after the expiration of the one (1) year period.
7.16.00.00 REPLACEMENT HOUSING OF LAST RESORT
7.16.01.00 General Explanation
The Uniform Relocation Regulations establish maximum payment limitations for the various
types of relocation housing payments. The regulations also prohibit acquiring agencies from
causing residential occupants to move from their dwelling unless comparable DS&S
replacement housing has been made available to them.
Without relief from these limitations and prohibitions, it would not be possible to proceed with
a project when the only replacement dwelling available requires relocation housing payments
in excess of the maximum payment limitations or when there is no existing replacement
housing available. Relief is provided in the Uniform Relocation Regulations which authorize Last
Resort Housing Payments.
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Agencies are given broad latitude in providing replacement housing under this program,
provided that the costs are reasonable and the measures taken to provide last resort housing
are cost effective.
7.16.02.00 Last Resort Determination (49 CFR 24.404(a))
Whenever a program or project cannot proceed on a timely basis because comparable
replacement dwellings are not available within the monetary limits for owners or tenants, the
Commission shall provide additional or alternate assistance under the provisions of this
subpart. Any decision to provide last resort housing assistance must be adequately justified
either on a case-by-case basis for good cause, which means that appropriate consideration has
been given to the following:
• The availability of comparable housing in the program or project area
• The resources available to provide comparable replacement housing
• The individual circumstances of the displaced person
Or by a determination of the following:
• There is little, if any, comparable replacement housing available to displaced persons
within an entire program or project area and, therefore, last resort housing assistance is
necessary for the area as a whole.
• A program or project cannot be advanced to completion in a timely manner without last
resort housing assistance.
• The method selected for providing last resort housing assistance is cost effective,
considering all elements which contribute to total project or program costs.
7.16.03.00 Tenured Occupants
Ninety (90) day homeowner-occupants and ninety (90) day occupants are entitled to have last
resort housing made available to them when comparable replacement housing is either not
available, or available, but the calculated replacement housing payments exceed the
$31,000/$7,200 statutory limits. Note that the $31,000 limit is the aggregate of the price
differential, interest differential and incidental cost payments.
7.16.04.00 Short Term and Subsequent Occupants
Less than ninety (90) day occupants are entitled to have last resort housing made available to
them when comparable replacement housing is either not available; or available, but the
monthly rental rate, including utilities, of the replacement dwelling exceeds the rent and
utilities at the displacement site.
7.16.05.00 Made Available
“Made available” means that displacee exercises independent choice and obtains comparable
replacement housing for themselves and has the right of possession to that housing or it means
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the Commission offers displacee replacement housing that is available for immediate
occupancy by the following methods:
• Determining that comparable replacement dwellings are available and informing
displacee of their availability and location
• Informing displacee of the monetary entitlements available to help provide such
replacement housing
• Providing sufficient time and assistance to negotiate for and obtain possession of the
replacement property
The Commission’s obligation to provide replacement housing is met when comparable housing
is made available to displacee. The Commission can then proceed to issue notices to vacate.
7.16.06.00 Methods of Providing Comparable Replacement Housing
The methods of providing housing of last resort include, but at not limited to:
• A replacement housing payment in excess of the limits.
• Rehabilitation of and/or additions to an existing replacement dwelling.
• The construction of a new replacement dwelling.
• The provision of a direct loan, which requires regular amortization for deferred
repayment. The loan may be unsecured or secured by the real property. The loan may
bear interest or be interest-free.
• The relocation, and, if necessary, rehabilitation of a dwelling.
• The purchase of land and/or a replacement dwelling by the displacing agency and
subsequent sale or lease to, or exchange with a displaced person.
• The removal of barriers to the handicapped.
• The change in status of the displaced person with his or her concurrence from tenant to
homeowner when it is more cost effective to do so, as in cases where a down payment
may be less expensive than a last resort rental assistance payment.
Under special circumstances, consistent with the definition of a comparable replacement
dwelling, modified methods of providing housing of last resort permit consideration of
replacement housing. This shall be based on space and physical characteristics different from
those in the displacement dwelling including upgraded, but smaller, replacement housing that
is decent, safe and sanitary and adequate to accommodate individuals or families displaced
from marginal or substandard housing with probable functional obsolescence. In no event,
however, shall a displaced 90-day person be required to move into a dwelling that is not
functionally equivalent.
The Commission shall provide assistance to a displaced person who is not eligible to receive a
replacement housing payment because of failure to meet the length of occupancy requirement
when comparable replacement rental housing is not available at rental rates within the person
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“financial means, which is 30 percent of the person's gross monthly household income. Such
assistance shall cover a period of 42 months.
7.16.07.00 Last Resort Housing Plan
All last resort relocation housing payments must be approved in advance by the Right of Way
Manager.
The Relocation Agent must submit a last resort housing plan to the Right of Way Manager for
approval prior to making any commitment to the displacee. The plan can be in the form of a
letter outlining the problem and the proposed solution. The amount of the proposed relocation
housing payment must be shown as well as the manner in which it was determined. The
displacee should be identified by name, occupancy status and parcel number. The plan need
not be elaborate but must provide the facts, supporting documentation and a clear picture of
the proposal for making a DS&S comparable dwelling available to the displacee.
7.17.00.00 APPEALS
7.17.01.00 General (49 CFR 24.10(a))
“The Agency shall promptly review appeals in accordance with the requirements of applicable
law and this part.”
Commission staff will review all appeals not later than sixty (60) days after written notice of
appeal is received. All Notices of Appeal shall be addressed as follows:
Riverside County Transportation Commission
Attention: Right of Way Manager
4080 Lemon Street, 3rd Floor
Riverside, CA 92502
7.17.02.00 Appealable Actions (49 CFR 24.10(b))
“An aggravated person may file a written appeal with the Agency in any case in which the
person believes that the Agency has failed to properly consider the person’s application for
assistance under this part. Such assistance may include, but is not limited to, the person’s
eligibility for, or the amount of, a payment required under Section 24.106 or Section 24.107, or
a relocation payment required under this part. The Agency shall consider a written appeal
regardless of form.”
Commission staff shall consider all relocation assistance appeals on their merit, unless a claim is
abandoned, either formally, or informally.
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7.17.03.00 Time Limit (49 CFR 24.10(c))
“The Agency may set a reasonable time limit for a person to file an appeal. The time limit shall
not be less than 60 days after the person receives written notification of the Agency’s
determination of the person’s claim.”
If a claimant was not required to relocate, or was determined to not be eligible for relocation
benefits, the appeal must be filed within sixty (60) days of receiving notification of the
Commission’s initial determination of ineligibility.
If a claimant disagrees with the amount or type of eligibility determination, the appeal must be
filed within sixty (60) days of receiving notification of that determination. The Commission may
extend the time period for anyone to appeal, upon showing of good cause as determined at the
Commission’s sole discretion.
7.17.04.00 Right to Representation (49 CFR 24.10(d))
“A person has a right to be represented by legal counsel or other representative in connection
with his or her appeal, but solely at the person’s own expense.”
7.17.05.00 Review of Files (49 CFR 24.10(e))
“The Agency shall permit a person to inspect and copy all materials pertinent to his or her
appeal, except materials which are classified as confidential by the Agency. The Agency may,
however, impose reasonable conditions on the person’s right to inspect, consistent with
applicable laws.”
The Commission will make available for review its relocation file, at Commission offices, as it
pertains to the appellant upon request by the appellant. A request to review the file shall be
made in writing and must be made at the time the appeal is initiated pursuant to Section
7.17.01.00. The Commission may set a reasonable time limit for appellant to review the file.
The Commission may charge reasonable fees for any copied material in accordance with
Commission policy. Any materials that are protected from disclosure pursuant to any legal
privilege or under the California Public Records Act shall not be made available. These
materials are hereby classified confidential by the Commission.
7.17.06.00 Scope of Review (49 CFR 24.10(f))
“In deciding an appeal, the Agency shall consider all pertinent justification and other material
submitted by the person, and all other available information that is needed to ensure a fair and
full review of the appeal.”
All materials that the applicant wishes to have considered at the appeals hearing (see Section
7.17.08.00) must be submitted no later than ten (10) days prior to the date of the hearing to
allow the appeals panel sufficient time to consider such materials.
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7.17.07.00 Agency Official – Commission Executive Director (49 CFR 24.10(h))
“The Agency official conducting the review of the appeal shall be either the head of the Agency
or his or her authorized designee. However, the official shall not have been directly involved in
the action appealed.”
7.17.08.00 Appeal Process
The Right of Way Manager or his or her designee shall respond to the appellant or the
appellant’s representative in writing, no later than fourteen (14) days after receipt of
Notification pursuant to Section 7.17.01.00.
If the Right of Way Manager is unable to resolve the disputed determination to the appellant’s
satisfaction, the Right of Way Manager shall set a hearing for the appeal no later than forty-six
(46) days from the date of the initial Notice.
The hearing shall occur before an Appeals Board, which shall be compromised of one or more
persons, at the discretion of the Executive Director or his or her designee. The following
persons may not be on the Appeals Board:
• Any individual who is employed by a firm that is contracted with the Commission on any
active or pending right of way project.
• Any person that has a contract or is a subcontractor with an entity that has a contract
with the Commission on any active or pending right of way project.
• Any individual who is holding an elected public office within the Commission’s
jurisdiction.
• Any person directly involved in the determination being appealed.
The appeal hearing shall be recorded, either through the use of a court reporter or
videographer, or both at the Commission’s election and cost. The appellant shall be entitled to
obtain a copy of the transcript and/or video at the Commission’s expense. The Commission
shall also pay for the cost of a copy and/or video to be provided to the Appeals Board should
the matter be taken under submission.
The appeal hearing shall be held at the Commission offices to the greatest extent practicable,
unless the Right of Way Manager and the appellant agree otherwise.
The appeal hearing shall continue day to day until all evidence has been presented and all
necessary testimony has been given.
If the appellant is represented by counsel, the Commission shall have the right to be
represented by counsel.
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7.17.09.00 Determination and Notification After Appeal (49 CFR 24.10 (g))
“Promptly after receipt of all information submitted by a person in support of an appeal, the
Agency shall make a written determination on the appeal, including an explanation of the basis
on which the decision was made, and furnish the person a copy. If the full relief requested is
not granted, the Agency shall advise the person of his or her right to seek judicial review of the
Agency decision.”
The Commission shall issue a written determination of its final decision no later than thirty (30)
days after the conclusion of the appeals hearing. If the appellant is dissatisfied with the
determination, the appellant may seek judicial review of the determination within the time
limits prescribed by law.
7.17.10.00 Additional Rights (Title 25, California Code of Regulations Chapter 6, Article 1,
Section 6000 et seq., Section 6158 (a))
“The public entity shall consider the request for review and shall decide whether a modification
of its initial determination is necessary. This review shall be conducted by the head of the public
entity or an authorized, impartial designee. (The designee may be a committee). A designee
shall have the authority to revise the initial determination or the determination of a previous
oral presentation. The public entity shall consider every aggrieved person's complaint
regardless of form, and shall, if necessary provide assistance to the claimant in preparing the
written claim. When a claimant seeks review, the public entity shall inform him that he has the
right to be represented by an attorney, to present his case by oral or documentary evidence, to
submit rebuttal evidence, to conduct such cross-examination as may be required for a full and
true disclosure of facts, and to seek judicial review once he has exhausted administrative
appeal.”
The appellant has a right to representation by legal counsel or other counsel at his or her
expense at any and all stages of the proceedings. The appellant also has the right to present his
or her case by oral or documentary evidence. Rebuttal evidence must be submitted at the time
of the hearing or within seven (7) calendar days of the date of the hearing, to conduct such
cross-examination as may be required for a full and true disclosure of facts and to seek judicial
review once he or she has exhausted administrative appeal.
7.18.00.00 EVICTION FOR DISPLACEES
7.18.01.00 Eviction Timing
For residential owner-occupants, a 30-Day Notice to Vacate may be issued after sixty (60) days
have passed since the 90-Day Information Notice was issued if control of the property is
expected within thirty (30) days. Owner-occupants are provided a fifteen (15) day grace period.
The Commission will move forward with eviction after the grace period has ended. Revisions
can be issued if the anticipated date of control is delayed. Extending the 30-Day Notice to
Vacate may affect the validity of any notices preceding an unlawful detainer action.
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7.18.02.00 Eviction Process
Once the Commission decides to evict an unlawful eligible tenant, the eviction process should
be carried to conclusion. Eligible tenants who are evicted by the Commission because of
unlawful occupancy must be advised that they retain eligibility for relocation advisory
assistance and payments. The Commission will solicit the assistance of legal counsel to proceed
with an unlawful detainer (UD) action when displaced tenants do not move from the property
after control has been obtained from the owner. Personal property may be moved into storage.
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PROPERTY MANAGEMENT CHAPTER 8
8.00.00.00 PROPERTY MANAGEMENT
8.01.00.00 GENERAL PROVISIONS
The Commission acquires real property for rail, highway and other transportation purposes.
The Commission strives to manage its real property with the objective of maximizing existing
and future public transportation benefits, safety, and financial income by means of professional
property management policies and procedures. This includes issuing licenses and rights of
entry for authorized third-party uses, as well as investigating and resolving issues regarding
uses that are not authorized by the Commission. On certain extraordinary circumstances, the
Commission may also grant easements. General maintenance activities and security measures
are also part of the property management scope of work on all the Commission properties.
8.01.01.00 Definitions
Easement. A grant of easement will only be authorized in certain, infrequent circumstances. In
most cases, the intended purpose is a public necessity (highway, etc.) and the proposed grantee
is a governmental, or similar agency, having the right of eminent domain, e.g., the State, etc.
The policies and procedures established herein for rights of entry and license agreements can
also generally be applied to grants of easement.
Encroachment. A use or trespass of the Commission property that has not been authorized by
a right of entry, license agreement, or grant of easement.
Lease. A contract that grants possession of property for a specified period of time in return for
specified compensation.
Licensee. An authorized user of the Commission property by virtue of a license agreement, this
may also include a lessee under a lease issued by Burlington Northern & Santa Fe (BNSF) prior
to 1993.
Rights of Entry. Short-term use of the Commission property, generally one (1) to ninety (90)
days, may be authorized by a right of entry. These documents are frequently used for
construction activities, parking or other temporary purposes. Other than a one-time processing
fee (see application process below), rental amounts may not be assessed, however, the
Commission reserves the right to do so for certain special uses.
Tenant. Any licensee, lessee, or recipient of a right of entry who is authorized to use the
Commission property which includes individuals, corporations, utilities, and governmental
agencies.
User. Any entity occupying the Commission property, either authorized or unauthorized.
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8.02.00.00 RAIL PROPERTY MANAGEMENT POLICIES
8.02.01.00 Policies for the Management of Property and Resolution of Encroachments
8.02.01.01 General Information. The Right of Way Staff shall have management
responsibilities for all properties acquired for transportation purposes, including
the following:
• Manage existing rights of entry, licenses, and leases through periodic field
inspections to assure compliance with the terms and conditions of the respective
agreement.
• Review the terms and conditions of existing agreements, ensuring annual license
rates are based on the property’s fair market value and Commission policies.
• Prepare and issue new rights of entry and license agreements for use of the
Commission’s property in conformity with Commission policies. Easements may
be granted in rare circumstances.
• Consult with appropriate BNSF, Southern California Regional Rail Authority
(SCRRA) and Commission personnel, when necessary, to determine the impact of
property uses by third parties affecting existing or future transportation projects.
• Consult with legal counsel for approval of changes requested to the standard
form right of entry and license agreements.
• Consult with the insurance department for approval of changes to the standard
insurance requirements.
• Coordinate with the accounting department in the organization and
maintenance of a license revenue collection system designed to operate in
conjunction with other Commission systems.
• Manage all properties to minimize maintenance and prevent unauthorized uses.
• Create, organize, and maintain a database of all Commission fee-owned
properties, including location, assessor’s information, size, fair market value, etc.
• Create, organize, and maintain a database of all Commission license agreements
(including licenses and leases assumed from BNSF) and rights of entry, providing
important terms and conditions, property location, annual rate, etc.
• Identify surplus property that is a candidate for sale and maximize the benefits
to be received from the sale.
8.02.01.02 Use of Property by Third Parties. When the Commission acquires real property
in advance of the time it is required for a transportation project, the property
may be utilized during the interim period to create revenue and reduce
maintenance expenses for the Commission. Such uses may also continue once
the transportation project has been completed, so long as the use is compatible
with the project.
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8.02.01.03 Availability of Property for a Right of Entry or License. Prior to issuing a right of
entry or license, the Right of Way Staff shall make the following decisions
concerning a proposed use:
• It is in the best interest of the Commission to authorize the proposed use.
• It will not interfere with any present or future BNSF, RCTC or SCRRA
transportation uses.
• Any required building permits or other authorizations can be obtained by the
proposed tenant under the current zoning regulations or with appropriate
variances and conditional use permits (to be acquired by the tenant prior to the
execution of any document).
• The proposed use is not illegal, would not constitute a public nuisance, and is not
contrary to public or Commission policy, and that the property is in a suitable,
safe and sanitary condition for such use.
• It does not require the installation of substantial improvements or would
otherwise encumber the property to the extent that it would not be available
when the need arises for a transportation use.
• It is not intended to meet any city regulatory code requirements imposed on the
occupants of adjoining or nearby property.
• It is not used for any purpose that poses an environmental risk from hazardous
materials.
• Grading, paving and other work on Commission property, as well as any
adjoining property used by the proposed tenant, will not adversely impact any of
the Commission property.
• The proposed tenant understands the property must be restored to its original
condition or better once its term of use is completed.
8.02.01.04 Assigned License Agreements. In some instances, it may be of benefit to the
Commission to accept an assignment of an existing license (or BNSF lease) upon
acquisition of a property, instead of issuing a new license agreement. Prior to
acquisition, all such license agreements to be assigned to the Commission shall
be reviewed by the appropriate personnel and legal counsel to determine if the
tenant is in compliance with the terms and conditions of the agreement. In
addition, the terms, conditions and parties to the license shall be verified
through an Estoppel Certificate, prepared as part of the escrow process. The
original license agreement shall be attached to the Estoppel Certificate for
processing into the Commission's system. Additional terms may be negotiated
with the tenant and included in a revised license. Whenever possible, assigned
agreements should be converted to conform to the appropriate Commission
standard license form. A rental adjustment may be made (upward only) to the
annual rate established for the property. All other terms and conditions are
reviewed and any changes made, when necessary.
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In some cases, the existing agreement to be transferred to the Commission may
not accurately reflect the current tenant or use of the property. This provides an
opportunity for the Commission to prepare a new license agreement on its
standard form.
All assigned license agreements shall be given a Commission agreement number
for control purposes. All original documents may be stored off-site for security
purposes and a copy of the fully-executed agreement included in the working
file. Like other licenses, the Right of Way Staff ensures that the tenant meets the
terms and conditions of the agreement through periodic site inspections and
review of the agreement.
The written permission of the Commission is required in most licenses/leases
transferred by BNSF to RCTC when a licensee/lessee desires to assign its interest
to another entity. All new licenses issued by the Commission do not allow for
such an assignment, a new license must be issued.
8.02.01.05 Property Inspection. The Right of Way Staff shall periodically inspect all fee-
owned properties (easement properties may also be included) and prepare
complete documentation on a property inspection form, including the following:
• Location and assessor's parcel number
• Occupation by an authorized tenant via a right of entry, license or lease
• Description of improvements
• Conformity to an authorized use by any building or occupant
• Description of any available utilities
• Identification of any environmental concerns
• Observation of any unauthorized encroachments
• Any physical changes or issues that need to be addressed
• Other pertinent data related to the property
8.02.01.06 Maintaining and Protecting Property. All operating railroad rights of way will be
maintained and protected by the Commission or SCRRA against unauthorized
use, vandalism, and damage. BNSF or local public agencies (city, county, etc.)
may also get involved. The appropriate Shared Use Agreement, as amended,
shall dictate responsibilities for the San Jacinto and San Bernardino Subdivisions,
in addition, the SCRRA Public Projects Manual shall apply for all railroad rights of
way affected by SCRRA operations. In general, the following maintenance and
protection responsibilities shall apply:
• BNSF shall have responsibility for the San Bernardino Subdivision since the
Commission only has easement rights for passenger rail service.
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• SCRRA shall have responsibility for the operating portion of the San Jacinto
Subdivision. The operating portion of the right of way is considered to extend
outward twenty-five (25) feet on both sides from the centerline of the main
track(s). The Commission shall maintain the remaining portion of the right of
way.
• At certain operating SCRRA grade crossings, SCRRA and the applicable public
agency share responsibilities.
• The Commission shall have responsibility for all rail station sites and all other
properties (including excess rail and highway parcels).
• When applicable, some security matters shall also be forwarded to the
appropriate law enforcement agency.
• When a parcel has actually been assigned to a construction project, the security
of the construction site, including all materials, equipment, supplies and the off-
site area is the responsibility of the construction contractor. The Right of Way
Staff shall monitor the contractor's activities throughout the project.
• The security of equipment, facilities, or other structures on the Commission's
licensed property shall be the sole responsibility of the tenant until the license or
right of entry is terminated. The Right of Way Staff is responsible for conducting
periodic property inspections to verify that the tenant is securing the property as
required by the agreement in a reasonable manner.
8.03.00.00 RAIL PROPERTY MANGEMENT PROCEDURES
8.03.01.00 Application Process
The website (http://www.rctc.org) contains all required information and forms to apply for the
use of the Commission's fee-owned property via a right of entry or license agreement. All third-
party users must approach the Commission to initiate the application process. The following
summary briefly describes each information page and form:
• Application Process for Use of Commission Property (www.rctc.org). Summarizes the
general process for both rights of entry and license agreements.
• Application Package. Describes requirements for the application for each document.
• Right of Entry. General Application Form, appropriate Supplemental Application Form,
two sets of plans, an electronic copy, $1,000 application processing fee (non-
refundable), and types and amounts of insurance.
• License. General Application Form, appropriate Supplemental Application Form, two
sets of plans (additional electronic copy to SCRRA, if proposed use impacts railroad right
of way within 25 feet of centerline), $6,000 application processing fee, annual rental fee
will be assessed (public agencies are exempt from both fees), and types and amounts of
insurance.
• Any person working on or near tracks must be certified by BNSF and SCRRA for safety,
security, etc.
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• Insurance Requirements. Rights of entry and license agreements will require the
following insurance if a railroad right of way is involved. Insurance requirements change
from time to time in accordance with the Commission’s risk threshold. Applicants will
be required to provide the appropriate insurance certificates in effect at the time of
their application.
• Forms Information. The various forms used in the application process are the following:
General Application Form, Supplemental Application for Pipeline Facilities,
Supplemental Application for Wire, Line Facilities, and Supplemental Application for
Grade Crossing/Access, Supplemental Application for Private Use, Supplemental
Application for Right of Entry, Railroad License Agreement Form, and Right of Entry
Agreement Form.
8.03.02.00 Authority to Approve a License of Commission Property
Authority to approve a license on the Commission's property, as well as any special terms and
conditions of the agreement, shall be determined based on the specific terms and conditions of
each agreement, including annual rate, length of term (if other than a thirty (30) day
termination period), special provisions, etc. Approval by legal counsel is required for all license
agreements. After appropriate approvals, processing and execution by the tenant, the
Executive Director shall execute all licenses.
8.03.03.00 Database for Fee-owned Property
A database will be developed for all of the Commission’s properties which, among other things,
will reflect their current status, e.g., operating, licensed to a third party, or declared surplus.
Most properties are initially acquired for rail or highway transportation purposes. Any
properties which are subject to a right of entry will be marked as such. The data base will
include most of the same basic information as a license, including term, location, etc. The
database will provide specific detailed information for each parcel. It will be available to
respond to various departmental and agency information needs including:
• The Commission’s reporting requirements, such as budgetary projections and revenue
projections
• Regulatory agency information requests
• Identification of surplus land
8.03.04.00 Database for License Agreements and Rights of Entry
To effectively and efficiently manage all of the Commission's licensed properties, as well as
those subject to a right of entry, a database has been developed and is maintained by the
Commission, and includes, among other things, the following general information for each
agreement. The database also includes properties that are subject to an existing lease(s) or
license(s) previously entered into by BNSF and assumed by the Commission):
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• Agreement number
• Tenant
• Use
• Location (including rail mile post)
• Map reference
• Area dimensions
• Agreement terms and conditions
• Insurance coverage
• Date entered into system
• Field survey information
• Additional information of needed
8.03.05.00 Property Inspections
The Right of Way Staff performs the following inspection activities on all of the Commission's
properties, including those properties where a third party has a right of entry or license
agreement:
• Conducts periodic inspections as necessary for operating properties with no third-party
use, at least annually for licensed parcels and more frequently for parcels encumbered
by rights of entry, as well as those having potential problem conditions.
• Implements any required property and building management activities, including
arrangements needing the assistance of BNSF, SCRRA, the State or local agencies, such
as locking or boarding up facilities, posting the property, removing debris and
controlling dumping (including contaminated/hazardous materials), removing weeds
and reducing fire hazards, inspecting for pest infestation, removing/relocating transients
and notifying local authorities when appropriate.
8.03.06.00 Grants of Easement
For those occasions where a grant of easement is required, the Right of Way Staff prepares an
approval report, indicating why a grant of easement is the preferred document, instead of a
license agreement. The Board of Commissioners will make the final approval in most
circumstances.
8.03.07.00 License Agreements and Rights of Entry
The Right of Way Staff performs the following activities for third-party uses of fee-owned
properties (where appropriate, all references to existing license agreements shall also include
licenses and leases which have been assumed by the Commission from BNSF):
• Determines that a proposed use is compatible with current operations and future plans
of the Commission, BNSF, and SCRRA.
• Determines that the proposed use is compatible with surrounding land uses and current
zoning designations.
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• For licenses, determines the appropriate annual rate based on market data, valuation
analysis and Commission policies. If necessary, requests an appraisal of the property for
purposes of determining market value and rates.
• Determines if a right of entry or license agreement is the proper document to
accommodate a proposed use, and whether any changes are required to the standard
form.
• Determines if approval from the Board of Commissioners is required and, if necessary,
prepares the appropriate approval report.
• Obtains any required approvals of proposed use, e.g., legal counsel, insurance, SCRRA,
etc.
• After receiving an application and fee (see Application Process above) from the
proposed tenant, prepares the appropriate right of entry or license agreement in
quadruplicate, obtains the appropriate Commission agreement number and sends to
tenant for execution. It is then returned to the Commission along with any required
insurance certificate(s) and/or initial payment. The agreement is then forwarded to the
Executive is then returned to the Commission along with any required insurance
certificate(s) Director for execution on behalf of the Commission. In some cases,
execution by the Chairperson of the Board is required.
• After execution, the document is entered into the accounting system and property
management database.
• Files original document in original file records depository and returns one original copy
to the tenant.
• A file copy should be placed in the file, along with the insurance certificate and any
subsequent amendments, address changes, correspondence, etc. Extra copies of the
contract should be made for Commission personnel, legal counsel, and SCRRA, as
appropriate.
8.03.08.00 Notice to Vacate Property
When a property is needed for operating purposes, or when a tenancy is to be terminated for
other than a breach of the applicable agreement, a Thirty-Day (or longer if necessary) Notice to
Vacate shall be issued by the Commission. In some cases, the tenant may be eligible for
relocation benefits under federal or state law. In this event, the relocation is coordinated with
the Right of Way Manager well ahead of the scheduled vacation date.
8.03.09.00 Property Maintenance
All Commission owned property shall be maintained in a safe and hazard-free condition. Prior
to the commencement of passenger rail service, the responsibility for all maintenance activities
on operating property within twenty-five (25) feet of both sides of the tracks is handled by
SCRRA. The Commission assumes responsibility of all property within the right of way located
outside of the twenty-five (25) foot corridor. If a property is covered by a third-party
agreement, the area covered by the agreement is the responsibility of the tenant. All non-
operating properties, rail or highway, shall be maintained by the Commission.
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All of the Commission’s property shall be maintained in a clean and orderly condition that does
not detract from the general appearance of the neighborhood. If this condition does not exist,
the Commission, BNSF or SCRRA, as appropriate, shall implement the appropriate corrective
measures to improve the property's appearance.
8.04.00.00 INTERIM PROPERTY MANAGEMENT
During an acquisition project, at the close of escrow, it is possible that an owner or tenant may
occupy the impacted property due to the one of the following:
• The relocation process has not been completed upon close of escrow and the owner or
tenant has not yet moved to replacement housing or a business location. In this case
the Commission may prepare a month to month Leaseback Agreement to be executed
by the Commission and the owner or tenant;
• A new lease with no relocation benefits has been procured for a vacated property prior
to commencement of the project; or
• The occupant is leasing back the property prior to commencement of the project. This
leaseback option is available when the project will not commence within two years from
transfer of title from the owner to the Commission.
Interim property management will be required for these properties and all of the property
management policies and procedures in this chapter will apply.
Properties that have been vacated, including vacant land and vacant structures will also require
interim property management. Tasks will include:
• Periodic property inspections
• Removal of accumulated debris
• Maintenance or repair of safety issues
• Weed abatement
8.04.01.00 Leaseback Agreements
California Code of Civil Procedure, Section 1263.615 states the Commission shall offer a one
year Leaseback Agreement to the owner of a property to be acquired for that property owner's
continued use of the property upon acquisition, subject to the property owner's payment of fair
market rent unless the Commission states in writing that the use of the property for its stated
public use is scheduled to begin within two years of its acquisition. This will not apply if the
Commission states in writing that a leaseback of the property would create a public nuisance.
The lessee must carry adequate insurance coverage.
The Commission may require a security deposit to cover any potential liability arising from the
leaseback.
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The lessee shall be subject to unlawful detainer proceedings and holdover damages.
A public entity shall offer to renew a leaseback agreement for one-year terms, unless the
Commission states in writing that use of the property for its stated public use is scheduled to
begin within two years of the termination date of the lease. At least sixty (60) days prior to the
lease termination date, the Commission shall either offer a one year renewal of the lease or
send a statement declaring that the lease will not be renewed because the use of the property
is scheduled to begin within two years of the lease termination date. The lessee shall either
accept or reject a lease renewal offer at least thirty (30) days prior to the lease termination
date. The lessee's failure to accept a renewal offer in a timely manner shall constitute a
rejection of the renewal offer.
8.04.02.00 Property Management Procedures
The following procedures may be used to guide the Right of Way Staff through the process of
managing the Commission's property. They are designed to provide specific, more detailed
guidelines to supplement most of the general procedures delineated above.
8.04.03.00 Property Inspections
The Right of Way Staff conducts periodic inspections of the Commission’s properties, including
operating rights of way on which it may only have easement rights.
The Right of Way Staff conducts an inspection, noting property conditions on the appropriate
inspection form. The inspection form shall contain relevant information derived from the
database, including the location and agreement number of existing license agreements and
rights of entry affecting the subject property. As a result of the inspection, one of the six
following situations is usually observed:
Property is Clean and is Not Occupied. Property is clean (no extraneous or contaminated
materials, etc.) and is not occupied by a third-party user.
• Inspection form is completed in its entirety.
• Database is updated.
Property is Clean and is Occupied by Authorized User. Property is clean (no extraneous or
contaminated materials, etc.), but is occupied (has right of entry or license) by authorized user.
• Review terms and conditions of right of entry or license agreement.
• Inspection form is completed in its entirety.
• Inspection form is inserted in file.
• Database is updated.
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Property is Clean and is Occupied by Unauthorized User. Property is clean (no extraneous or
contaminated materials, etc.), but is occupied by an unauthorized user (has no right of entry or
license).
• Inspection form is completed in its entirety.
• Inspection form is inserted in file.
• If the user cannot be located, the Commission staff takes action to remove the
unauthorized use/user in accordance with the Removing Encroachments section, set
forth below.
• If locatable, the user is questioned regarding the nature of its occupancy. If it is
confirmed the user does not have a valid license or right of entry, the user is informed
that it is occupying Commission property without benefit of a formal document.
• If the use is acceptable to the Commission, BNSF and SCRRA, and the user wishes to stay
on the property, the Right of Way Staff requests the user to submit a formal application,
as described in the Commission website (see Application Process above).
• If the use is unacceptable to the Commission, BNSF, or SCRRA, the Right of Way Staff
takes action in accordance with the Removing Encroachments section set forth to
remove the unauthorized user.
• Database is updated.
Property is Not Clean and is Not Occupied. Property is not clean (extraneous or contaminated
materials, etc. are discovered) and is not occupied.
• Inspection form is completed in its entirety, noting unacceptable condition of property.
• Inspection form is inserted in file, the form is then updated to include a chronology of
each action taken until the issue is resolved.
• The Right of Way Staff takes action to have the unacceptable materials removed in
accordance with the Contaminated Materials section, set forth below.
• The Right of Way Staff closely monitors the clean-up process and notes each action in
the inspection form.
• The file is closed after all clean-up items are satisfactorily completed.
• Database is updated.
Property is Not Clean and is Occupied by an Authorized User. Property is not clean (extraneous
or contaminated materials, etc. are discovered) and is occupied by an authorized third-party
user.
• Review terms and conditions of right of entry or license agreement.
• Inspection form is completed in its entirety, noting unacceptable condition of property.
• Inspection form is inserted in file, the form is then updated to include a chronology of
each action taken until the issue is resolved.
• The Right of Way Staff informs the tenant that action must be immediately taken to
have the unacceptable condition rectified in a manner acceptable to the Commission,
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see Contaminated Materials section, set forth below. The tenant is also informed his
right of entry or license agreement is in jeopardy of being terminated with the
Commission possibly taking whatever legal measures are available to cure the problem.
• After reviewing the situation with the tenant, the Right of Way Staff confirms in writing
the party responsible for the infraction and the proper course of action to be taken.
• The Commission generally takes responsibility for all clean-up activities and bills the
tenant for all measures taken.
• The Right of Way Staff takes action to have the unacceptable materials removed in
accordance with the Contaminated Materials section, set forth below.
• The Right of Way Staff closely monitors the clean-up process and notes each action in
the inspection form.
• The file is closed after all clean-up items are satisfactorily completed. Database is
updated.
Property is Not Clean, and is Occupied by Unauthorized Third Party. Property is not clean
(extraneous or contaminated materials, etc. are discovered) and is occupied by an unauthorized
third-party user.
• Inspection form is completed in its entirety, noting unacceptable condition of property
and unauthorized use of property.
• Inspection form is inserted in file, the form is then updated to include a chronology of
each action taken until the issues are resolved.
• If the user cannot be located, the Commission staff takes action to remove both the
unauthorized use/user and unacceptable condition in accordance with the Removing
Encroachments and Contaminated Materials sections, as set forth below.
• If locatable, the Commission staff informs user that it is unlawfully occupying
Commission property and action must be immediately taken to have the unacceptable
condition rectified in a manner acceptable to the Commission (see Removing
Encroachments and Contaminated Materials sections, as set forth below.
• If the third-party user agrees to resolve the unacceptable situation (e.g., illegal dumping
of concrete) and its primary use of the property (e.g., backyard landscaping) is
acceptable to the Commission, BNSF, and SCRRA, a right of entry or license agreement,
as appropriate, may be prepared in accordance with the Application Process delineated
above.
• After reviewing the situation with the tenant and confirming in writing the proper
course of action to be taken, the Right of Way Staff closely monitors the clean-up
process and notes each action in the inspection form.
• The file is closed after all clean-up items are satisfactorily completed.
• Database is updated.
8.04.04.00 Preparation of Rights of Entry and License Agreements
Upon receiving a request from a third party through the Application Process set forth above,
the Right of Way Staff takes the following actions to accommodate an existing or proposed use
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of Commission property.
8.04.04.01 Application Review. The Right of Way Staff receives the following:
• Completed General Information Form
• Applicable Required Supplemental Application
• Two sets of detailed plans showing proposed use
• Application fee of $6,000 (license) or application fee $1,000 (right to enter). The
Right of Way Staff forwards the fee to Finance/Accounting
• Appropriate certificates of insurance
8.04.04.02 Design Review. The Right of Way Staff will perform the following:
• Reviews plans showing proposed use
• Forwards plans to the Commission’s engineer (if a railroad right of way) for
review
• Receives plans from the Commission’s engineer
• If plans are approved, informs applicant, the status of fees is also mentioned
• If plans are not approved, informs applicant of discrepancies and needed
revisions
• If applicant submits revised plans, initiates new design review
8.04.04.03 Agreement Preparation. The Right of Way Staff determines if a right of entry or
license agreement is the proper document to accommodate the proposed use
and whether any changes are required to the standard form. If changes are
required, the Right of Way Staff obtains concurrence from legal counsel,
insurance, or other. For licenses, the Right of Way Staff determines the
following:
• Appropriate annual rate, see methodology in Rental Amounts section set forth
below
• If necessary, requests an appraisal of the property from a Commission-approved
appraiser for purposes of determining market value
• Receives and reviews appraisal
• Determines if approval from the Board of Commissioners is required
After the appropriate concurrence has been obtained, the Right of Way Staff
instructs legal counsel to prepare (in quadruplicate) the appropriate right of
entry or license agreement, including any approved changes, and begin the right
of entry or license agreement process as follows:
• Prepares exhibit map
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• Prepares any other necessary exhibits and attachments
• Obtains the Commission agreement number
• If necessary, forwards exhibit map and attachments to legal counsel for
attachment to document (this may be done prior to, or along with, the request
for its preparation)
• Receives right of entry or license agreement from legal counsel
• Attaches exhibit map and attachments (if not done previously) and sends four (4)
originals to applicant for execution. A copy is retained in file
• Agreement execution
• Receives four (4) executed originals of right of entry or license agreement, along
with any additional correspondence and initial annual payment (if a license
agreement)
• Forwards four (4) originals to the Executive Director for execution
• One fully-executed original to the applicant (now considered a tenant)
• One fully-executed original to legal counsel
• Right of Way Department retains remaining copies
• Enter document into the property management database
• File one original document in Commission original file records depository
• Places a copy of document in the file, along with a copy of the insurance
certificate and any subsequent amendments, address changes, correspondence,
etc.
8.04.04.04 Construction and Closeout (if applicable). Tenant provides a five-day notice of
construction to the Commission. During construction, the Right of Way Staff
performs the following:
• Inspects property during construction and upon completion of construction.
• Receives as-built drawings.
8.04.04.05 Completion of Project. Right of Way Staff performs the following:
• Notifies Finance/Accounting Department of annual fee instructions.
• Processes project close out.
8.05.00.00 REMOVING ENCROACHMENTS
If the Commission property is encumbered by a use that is not authorized or compatible with
existing or future transportation projects (encroachment), it must be removed as soon as
possible. The Right of Way Staff takes the following actions:
• Creates working file.
• Makes an effort to locate user.
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• Informs appropriate Commission and/or SCRRA personnel, including legal counsel, of
the encroachment and suggests a course of action to remove the encroachment.
• Course of action is confirmed and documented in writing in file.
• Determines if local law enforcement agency needs to get involved.
If so, contacts agency and inform them of proposed course of action and possible future need
of their services (the agency may request to be informed of progress of the Commission's
efforts).
If user cannot be located, removes encroachment in accordance with Contaminated Materials
section, set forth below. If contaminated/hazardous materials are involved, coordinates all
efforts with the Commission environmental consultant.
• If necessary, has parcel fenced, posted with a sign, etc., to prevent further
encroachments.
• Closes file.
• Database is updated.
If user is located, the Right of Way Staff informs user that the encroachment(s) must be
removed. The Commission generally takes responsibility for all clean-up activities in
accordance with Contaminated Materials section, set forth below, and bills the tenant for all
measures taken.
• If necessary, establishes time schedule for completing removal process.
• If contaminated/hazardous materials are involved, coordinates all efforts with the
Commission environmental consultant.
• If necessary, to prevent further encroachments, has parcel fenced, posted with a sign,
etc.
• Closes file.
• Database is updated.
If user is uncooperative, the Right of Way Staff will conduct the following:
• Contacts appropriate personnel and legal counsel to develop course of action.
• Implements course of action.
• If necessary, notifies user of the Commission's intended course of action.
• If necessary, notifies local law enforcement agency of the Commission's intended course
of action.
• If necessary, to prevent further encroachments, has parcel fenced, posted with a sign,
etc.
• Closes files.
• Database is updated.
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8.05.01.00 Resolution of Encroachments
An activity or use which encroaches onto a Commission fee-owned property is usually
discovered by a field inspection or notification by a third party, e.g., neighbor, governmental
agency, etc. After determining that such use is not covered by an existing right of entry, license,
or BNSF lease, the Right of Way Staff shall determine the best course of action to take to
resolve the matter, including review by legal counsel, if necessary.
If the use is one that is typically allowed by the Commission and does not interfere with existing
or future transportation plans for the property, authorization may be accomplished by
requiring the user apply for the appropriate right of entry or license agreement.
If the use or user is unacceptable to the Commission or SCCRA, the appropriate measures must
be taken by the Right of Way Staff, including the following:
• Attempt to make a contact with the user, trying to determine all pertinent information
including, how long have they been on the parcel and did anyone give them prior
permission? If so, was permission given verbally or in writing?
• Consult with legal counsel regarding best course of action to remove user.
• If possible, inform user in writing that they must vacate the premise.
• If user cannot be contacted, have property cleared of encroachment by the Commission
or outside contractor.
• Request assistance, if necessary, from the local law enforcement agency.
• If possible, take steps to prevent re-entry or other unauthorized uses, e.g., fence parcel,
post signs, etc.
• Create a file to document all activities in writing.
• Input all information into the database.
8.06.00.00 REMOVING CONTAMINATED MATERIALS
If the Right of Way Staff believes contaminated/hazardous materials or other substances
occupy the Commission property, the following course of action should immediately be taken
to rectify the problem in a timely manner by the Right of Way Staff:
• Determine which regulatory agency has jurisdiction first starting with the County
• Notifies the California Environmental Protection Agency and Department of Toxic
Substance Control, to obtain a State identification number for the problem.
• The County of Riverside, Community Health Agency and Department of Environmental
Health should also be notified to determine if its input is required.
• If necessary, coordinates all efforts with the Commission environmental consultant.
• Secures a Commission approved contractor to commence clean-up activities.
• Conducts periodic onsite inspections to monitor activities of contractor.
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• After final inspection, verifies satisfactory completion of clean-up activities, files
appropriate forms with the California Environmental Protection Agency.
• Database is updated.
8.06.01.00 Contaminated Materials
The Commission shall assure that all of its properties do not pose a hazard to public health or
the environment. Prompt action is taken when an unsafe situation is discovered. All tenants on
the Commission property are responsible for its maintenance and protection, including keeping
it free and clear of all debris, litter or contaminated/hazardous materials that may pose a
hazard to public health or the environment. However, the Commission will generally take the
initial action to remedy any unsafe situations and may bill the tenant for all clean-up and
remediation costs.
8.06.02.00 Management of Contaminated Properties
All properties, whether used by third parties or not, are periodically inspected for adverse
environmental conditions and such conditions are noted on an inspection form.
If any evidence of contaminated/hazardous materials is detected, the Right of Way Staff will
inform the Right of Way Manager, legal counsel, and/or the Commission's environmental
consultants, as appropriate. A plan of remediation will be developed in consultation with the
environmental consultants and other designated departments.
8.07.00.00 DISPOSAL OF SURPLUS PROPERTIES
8.07.01.00 Authority of the Commission to Dispose of Surplus Land and Land Rights
Government Code Sections 54220-54232 provide authority and guidelines for the Commission
to dispose of the majority of its surplus land. In addition, the state Legislature has emphasized
certain future uses of surplus government land, placing a priority on low- and moderate-income
housing, park and recreation or open space purposes, "enterprise" zones, and development
projects near transit stations.
8.07.02.00 Exemptions
There are exemptions to the provisions of Government Code Sections 54220-54232, which are
as follows:
• Surplus land, which is transferred pursuant to Government Code Section 25539.4, which
states among other things that a county may sell real property at less than its fair
market value "to provide housing affordable to persons or families of low or moderate
income."
• Surplus land which is less than 5,000 square feet in area.
• Surplus land less than the minimum legal residential building lot size for the jurisdiction
in which the parcel is located, or 5,000 square feet in area, whichever is less.
• Surplus land which has no record of access and is less than 10,000 square feet in area.
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The property must not be contiguous to land owned by a state or local agency which is used for
park, recreational, open space, or low- and moderate-income housing purposes and is not
located within an enterprise zone (a depressed area in which private investment is promoted to
stimulate business and industrial growth, as well as employment opportunities) pursuant to
Government Code Section 7073, nor a designated program area as defined in Government
Code Section 7082 (high priority areas for resources designated by the Office of Criminal Justice
Planning). If the land is not sold to an owner of contiguous land, it is not considered exempt
surplus land and is subject to the provisions of Sections 54220-54232.
These exemptions do not apply in certain circumstances, including if the property is located
within a coastal zone, or System or eligible for the National Register of Historic Places.
8.07.03.00 Property Advertisement
When it has been determined that a Commission property is available for sale, the following
criteria will apply for notifying the public that the property is available:
• The Right of Way Manager may contact local real estate agents/ brokers to market the
property when it is determined that a very specialized user is required for the property
and the other means of advertising or solicitations has not yielded a suitable user.
When a broker is used, the Commission shall bear the cost of any commission due to the
broker.
8.07.04.00 Policies for the Disposition and Sale of Surplus Land and Land Rights
8.07.04.01 Purpose. The purpose is to establish the Commission policies and procedures
related to the disposition and sale of surplus land. The intent and purpose of
the policies and procedures are to assure uniform practices that will provide
consistent and equitable treatment of purchasers of surplus land, and helps
ensure the Commission receives the highest value for sale of Commission
owned properties while complying with state and federal regulations governing
disposal of surplus of agency-owned land. Even though the bulk of the sales will
be for fee-owned parcels, the policies and procedures mentioned herein could
also be used, wholly or partially, for surplus land rights, e.g., quitclaim of
easements.
8.07.04.02 Policy. Notwithstanding the provisions of Government Code Sections 54220-
54232, it is the policy of the Commission to sell land locked or remnant surplus
land at "assemblage value" or based on "across the fence appraisal" when
surplus land is sold to private individuals or private entities. All other surplus
land will be sold at fair market value.
8.07.04.03 Who Conducts Negotiations. Either the Right of Way Staff or consultant under
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the direct guidance of the Right of Way Manager is authorized to negotiate the
sale of surplus land on the Commission's behalf.
Right of Way Staff. Negotiations for the sale of surplus land may be conducted
by Commission Right of Way Staff. Such personnel must meet the minimum
qualifications for the position of Right of Way Manager as outlined in the RCTC
Personnel Manual. Other personnel not meeting these minimum qualifications
may perform negotiations under the direct guidance of the Right of Way
Manager.
Consultants. Negotiations may also be conducted by consultants under
written agreement with the Commission and under the direct guidance of the
Right of Way Manager.
8.07.04.04 Field Inspection. The Right of Way Staff will conduct a field inspection of the
subject property, to confirm the land to be disposed of is no longer needed for
operating purposes.
8.07.04.05 Determination of Sales Price. The Right of Way Manager prepares a sales price
recommendation which is based on a recent appraisal of the subject property
conducted by the Commission-approved appraiser. The appraiser is usually
chosen from the Commission’s approved list of on call appraisers.
8.07.04.06 Good Faith Negotiations and Basis of Value. It is the policy of the Commission
that all negotiations shall be expeditious and result in the Commission receiving
Just Compensation. Even though it is not required by law, in most cases an
appraisal of the surplus land should be conducted to determine its fair market
value. Also, the appraisal guards against a low sales price, as well as accusations
that the sale was a gift of public funds.
8.07.04.07 Notice to Selected Public Entities. As delineated in Government Code Section
54222, before disposing of any surplus land, the Commission is required to send
a written offer to sell surplus property to various entities within whose
jurisdiction the land is located. All offers shall be sent by first-class mail and
include the location and a description of the property. Those entities are as
follows:
• The local entity that assists in developing low- and moderate-income housing
• Housing sponsors who request a written offer
• The city and/or county park or recreation department, any regional park
authority, and the State Resources Agency for park and recreation or open-space
purposes
• The local school district (for school facilities construction or open space)
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• The local non-profit neighborhood enterprise association
• The program area agent established by the Economic Employment and Incentive
Act
Any of the entities desiring to purchase surplus land must notify the Commission
within sixty (60) days of receiving the written notice. The Commission must then
enter into good-faith negotiations to determine the sales price. If no agreement
is reached within a reasonable amount of time, the Commission may proceed
with the general disposition process; there are no other statutory requirements.
As previously mentioned, the notice requirements do not apply in certain
limited cases, such as small parcels that are sold to the adjacent property
owner, unless one of the following applies:
• A djoins publicly-owned land used for parks and recreation, open space, or low-
and moderate-income housing
• Located within a Government Code Section 7073 enterprise zone or a Section
7082 designated program area
• Located within 1,000 yards of a historical unit of the State Parks System or
property listed on or eligible for the National Register of Historic Places
8.07.04.08 Yearly Inventory. Each year the Commission will prepare an inventory of real
property that is surplus of its foreseeable needs. The inventory is a matter of
public record. To alert entities who develop low- and moderate-income housing,
the Commission must provide the inventory to any citizen, housing corporation,
or non-profit corporation who requests a copy. Most funding agencies also
require an inventory to be maintained and available for audit. The inventory
must note the funding agency.
8.07.04.09 Disposition and Management. Properties declared available for sale will be first
offered to other public entities in accordance with the above-mentioned Notice
to Selected Public Entities. If other public entities have no interest in a property
at the terms offered by the Commission, the property may be marketed by a
real estate marketing firm chosen by the Commission. The Commission may
wish to directly market these and other parcels, especially those of minimal
value.
Advertising may be posted on the subject property, in the local and regional
newspaper as well as online websites.
Parties interested in purchasing the Commission surplus properties shall submit
their formal written offers or proposals directly to the Commission. The Right of
Way Staff will initially review each offer and proposal and determine if the terms
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and conditions are in conformance with the Commission's plans for the subject
parcel.
After initial review by the Right of Way Staff, all offers and proposals to purchase
will be reviewed for consideration, with final approval on most parcels granted
by the Board of Commissioners.
In the event the Commission receives offers from more than one of the above-
mentioned public entities, it shall give priority to the entity which agrees to use
the property for housing for persons or families of low or moderate income,
except that first priority shall be given to an entity which agrees to use the
property for park or recreational purposes if the land being offered is already
being used, and will continue to be used, for park and recreational purposes, or
if the land is designated for park and recreational use in the local general plan
and will be developed for that purpose.
After all approvals have been obtained and the potential buyer has been
informed, a formal escrow will be opened at an approved escrow company.
Any Commission surplus properties subject to a license/lease agreement will be
classified and analyzed in accordance with the above-mentioned policies in order
to determine their future potential use at the termination of the license/lease.
8.07.04.10 Direct Sales to Adjoining Land Owners. The Commission may directly sell any
small, odd-shaped surplus parcels to adjacent land owners without going
through a competitive bidding process. These parcels usually have no value for
development. Only the adjacent owner would have a logical use of the parcel,
especially if needed for access to a public street. The minimum sales price will
be the parcel's appraised market value, considered as an assemblage value. If
the adjacent land owner does not wish to purchase the parcel, the Right of Way
Staff may proceed to offer it for sale as if it were any other surplus property.
8.07.04.11 Document Preparation. All documents regarding the sale of surplus land shall
be prepared and/or approved by the Commission legal counsel and forwarded
to the Right of Way Staff or consultants for final review and transmittal to
escrow.
8.07.04.12 Occupation Prior to Closing. No purchaser of surplus land shall be allowed to
occupy or take possession of the property prior to the full payment of the
purchase price and close of escrow without the prior written consent of the
Executive Director.
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8.07.05.00 Procedures for the Disposition and Sale of Surplus Land and Land Rights
The Commission has the power to declare such properties as “surplus” because they are not
needed for public use and will approve their disposition and sale. The Executive Director may
also perform this function for certain small parcels, e.g., those containing less than 5,000 square
feet. In both cases, a memorandum shall be submitted to the Executive Director by the Right of
Way Staff requesting approval. Prior to submission to the Executive Director, the
memorandum shall be concurred to by the Project Delivery Director and the Right of Way
Manager.
The property must be offered to the appropriate public entities. Their response must be
received within sixty (60) days of the notice sent by the Commission. Concurrently, the Right of
Way Staff will order an appraisal to determine the fair market value of the land and obtain the
approval of the Board of Commissioners or Executive Director, as appropriate.
If any public entities are interested in purchasing the subject property, agreement must be
reached within a reasonable amount of time to sales price and terms and conditions. If no
public entities are interested within the sixty day (60) time period, the Commission may offer
the parcel to the general public. Smaller parcels of minimal value may be handled directly by
the Right of Way Staff.
All offers to purchase must be reviewed by the Right of Way Staff and the Right of Way Staff
and approved by the Board of Commissioners or Executive Director, as appropriate. Counter-
offers may be necessary if the initial offered price or terms and conditions are not acceptable to
the Commission.
Once an offer has been approved and accepted by the Commission, the buyer is notified and
escrow is opened at an approved escrow company. For smaller parcels with a minimal value, it
is allowable to complete the transaction without an escrow, as long as a closure acceptable to
the Commission can be achieved.
Upon completion of the sale, the Commission personnel notifies the appropriate Commission
personnel of the property's sale. The file is then closed and the database revised to reflect the
parcel's sale.
8.07.06.00 Disposition and Sale Process Checklist
The following may be used to guide the Right of Way Staff through the process of disposing of
surplus land and land rights. It is designed to provide specific, more detailed guidelines to
supplement the general procedures mentioned above.
8.07.06.01 Declaring the Property as Surplus. Right of Way Staff is made aware, either by
internal means or notification by a third party, that a parcel could be declared
surplus and offered for sale. The Right of Way Staff obtains and reviews relevant
information regarding the parcel including the following:
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• Assessor's parcel map
• Acquisition data, including purchase price, acquisition date, legal description,
title policy, etc.
• Current zoning
• Available valuation data, including recent Commission appraisals for nearby
properties
The Right of Way Staff performs the following tasks:
• Inspects property and completes inspection form, noting any visible
encumbrances, hazardous waste, access problems, etc. Also, notes any "for
sale" signs in the area.
• Checks acquisition title policy to determine encumbrance items.
• Compares encumbrance items delineated in title policy with those observed
during property inspection, lists remaining encumbrances, those which no longer
occupy parcel and any new ones observed during inspection.
• Estimates property's fair market value using best means available by reviewing
existing appraisals, checking with listing agents having "for sale" signs in area,
Assessor's information, etc.
• An appraisal could be ordered if the property will have substantial value, no
other valuation data is available and it is reasonably certain the parcel will be
declared surplus (an appraisal will usually be ordered only after the property has
been approved for surplus status and sale).
• Obtains internal concurrence to have parcel declared surplus and available for
sale.
• Routes for approval through Right of Way Manager, Deputy Executive Director
and Executive Director. If necessary, the Board of Commissioners will approve
any unusual conditions or if property has significant market value.
• Receives fully authorized approval.
8.07.06.02 The Sale Process. The Right of Way Staff sends notice to each entity requesting
response within sixty (60) days per Government Code 54220, et seq.
The Right of Way Staff determines property's fair market value, generally by
ordering an appraisal. The Right of Way Staff will perform the following
functions:
• Receives and reviews each bid
• Awards appraisal contract
• Receives appraisal
• Reviews appraisal
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• If necessary (for complex or high market value appraisals), routes for review to
be performed by Right of Way Manager, Deputy Executive Director or outside
consultants
The Right of Way Staff determines fair market value and obtains approvals from
the following:
• Right of Way Manager
• Executive Director or designee
• Board of Commissioners, if necessary
If appropriate, the Right of Way Staff prepares and sends a Request for Offer,
any sales requirements, to any interested public entities. If appropriate, the
Right of Way Staff receives responses from interested public entities and
proceeds as follows:
• Responds to any questions from public entities
• Reviews offer(s), makes recommendation and submits to the Right of Way
Manager
• Informs potential buyer(s) of Committee's decision
• Receives potential buyer(s)' response
If necessary, repeat process until an offer is acceptable for recommendation to
the Board of Commissioners.
The Right of Way Staff obtains approval from the Board of Commissioners and
notifies potential buyer of offer's acceptance and verifies sales documents. Any
unsuccessful bidders should also be notified. The Right of Way Staff then
proceeds as follows:
• Requests legal counsel to prepare Purchase and Sale Agreement.
• Receives Purchase and Sale Agreement from legal counsel.
• Routes for execution by Executive Director.
• If applicable, opens escrow at an approved escrow company and submits
Purchase and Sale Agreement executed by the Commission. Escrow officer
secures buyer's execution of Purchase and Sale Agreement, as well as other
necessary documents.
• If necessary, completes any due diligence items required of the Commission e.g.,
resolution of encroachments, removal of contaminated materials, removal of
any tenant, etc.
• Receives all necessary documents, including grant deed, from escrow officer,
reviews, and routes for execution by Executive Director.
• Receives executed document(s) from Executive Director.
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• Requests RCTC Finance/Accounting to submit any funds into escrow required of
the Commission, e.g., tax pro-ration, escrow fee, etc.
Upon close of escrow, the Right of Way Staff will perform the following:
• Receives sale proceeds due the Commission and copies of recorded
document(s).
• Remits sale proceeds to the Commission Finance/Accounting Department.
• Makes copies of all documents, inserts one in file, and distribute other copies to
Insurance, Finance/Accounting, Rail/Property, and Legal Counsel (this will serve
as their notification of the parcel's sale).
• Forwards original document(s) to the Commission’s records vault.
When the file is closed, the Right of Way Staff will perform the following:
• Revise database to reflect parcel's sale.
• Receive, complete and return appropriate assessor's form, requesting sales price
information ("Change of Ownership Form" is no longer required).
8.07.07.00 Funding Sources
Before disposing of any property purchased by the Commission, the Commission staff should
consult the terms of the agreement under which the funding was accepted. The Commission is
required to follow the rules of the agency that provided the funding which could include
reimbursing the agency that contributed funds for the property's original acquisition.
8.07.07.01 FTA Funded Projects. Per FTA Circular 5010.1.D, if the Commission determines
that real property is no longer needed, and FTA funds were used, the FTA may
approve the use of the property for other purposes. They may include the use in
other federal grant programs or in non-federal programs that have consistent
purposes with those authorized for support by FTA.
• Valuation of Property Pending Disposal. For properties no longer needed for
transit purposes, the Commission is expected to follow the valuation
requirements of 49 CFR part 24 and obtain an appraisal to ascertain the value of
the property considered for disposal.
• Disposition Methods. The allowable disposition methods are described in
Chapter 4, Section 2(j)(2)(c) of the FTA C 5010.1D and are as follows:
-Sell and reimburse FTA
-Offset against the cost of a replacement property under the same program
-Sell and use proceeds for other FTA eligible capital projects
-Sell and keep proceeds in project
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-Transfer to public agency for non-transit use in accordance with 49 U.S.C.,
5334(h)(1)–(h)(3)
-Transfer property to another FTA eligible project
-Retain title with buyout of the FTA’s contribution
-Joint development in accordance with FTA circular 7050.1
8.07.07.02 FHWA Funded Projects. The regulations covering acquisition and disposal of
Excess Lands are found in 23 CFR 710. FHWA does not require reimbursement of
the federal share of proceeds from the sale of excess real property as long as the
proceeds are used for subsequent highway (US Code Title 23) eligible projects.
Selling an excess land property for less than fair market value requires FHWA
approval unless the property will be utilized for public utilities, railroads,
bikeways or other highway projects.
Sales credits are due to FHWA when right of way bought with federal funds is
sold, then subsequently declared to be excess because of an alignment change,
modification or termination action.
If the excess right of way results from an alignment change, the excess should be
disposed of before final vouchering of the project or no later than two (2) years
from the time the highway is opened to traffic, whichever is earlier. If property is
not sold within the approved time limit, the cost of the excess acquisition must
be credited to the project.
If excess results because the property is no longer needed for the purposes of
the highway project and within ten (10) years of the modification or termination
action the resulting excess property is neither sold, nor reused on another
federal project, then the FHWA must receive credit for the market value of the
property at the end of ten (10) years.
8.07.07.03 California Highway Users Tax Fund. Per Government Code 54321, land acquired
by the Commission for highway purposes through the expenditure of funds
allocated pursuant to Chapter 3 (commencing with Section 2100) of Division 3 of
the Streets and Highways Code may be transferred to another local agency for
public park and recreational purposes. Said land shall be developed within ten
(10) years and shall be used for at least twenty-five (25) years following such
retention or transfer in accordance with the general plan for the appropriate city
or county. Otherwise, the land shall be sold by the Commission and the funds
received from the sale used for highway purposes. If the land originally had been
transferred for such purposes, it shall revert to the original acquiring local agency
for such sale. Disposal of excess on State Highway projects should be addressed
in the cooperative agreement for design and right of way.
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8.07.07.04 Commission Funded Projects. The Commission may provide funding to cities for
capital projects, including acquisition of right of way. The following provisions
outline the policies for disposal of excess for Commission funded projects.
In order to protect a city’s ability to deliver a project in a timely and cost
effective manner, a city may purchase parcels of property in advance of the
completion of the project’s final design (PS&E) with funds received by the
Commission. Acquired parcels or remnants purchased in advance of final design
may not ultimately be required for the project.
Upon completion of the project’s final design, the city shall provide the
Commission with a detailed list of all parcels purchased by the city for which it
received Commission funds and identify any parcels or remnants thereof which
were acquired using Commission funds and are not required for construction of
the project. A preliminary list shall be submitted to the Commission thirty (30)
days before the issuance of bid documents for construction of the project and a
final list shall be submitted to the Commission no later than thirty (30) days
following the recording of the Certificate of Completion for the project.
Upon receipt of the city’s final list, the Commission shall meet with the city for
the purpose of identifying any parcel or reasonably usable remnant of a parcel
for which Commission funds were expended that may reasonably be developed
for other use by the city and/or sold. The Commission and the city shall agree
upon the disposition of such parcels and remnant parcels and their fair market
value as of a date agreed to by the parties, but in no event later than or prior to
the date of completion of the project.
Following recordation of the Certificate of Completion for the project, the city
shall be responsible for promptly reimbursing the Commission for any
Commission funds which were used to acquire parcels which are completely
unused in the project.
8.08.00.00 RENTAL POLICY
8.08.01.00 No Re-Rent
On a per project basis, the Commission may decide that no vacated residential units or
nonresidential property shall be rented. Vacated improvements on such project should be
cleared immediately.
8.08.02.00 Rental Agreements
When real property is acquired by the Commission in advance of the time it is required for
construction or operation of a transit project, the Commission may lease or license the real
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property to private or public entities during the interim period to create revenue for the
Commission. The following rental agreements shall be used:
• License. All new outside users of Commission-owned vacant land shall enter into a
license agreement on the standard license form of agreement.
• Lease. All new outside users of Commission-owned facilities (e.g. buildings) shall enter
into a lease agreement on the standard lease form of agreement.
• Right of Entry. All new outside users of Commission property with a definite term
between one and ninety days may be authorized by use of a temporary permit prepared
on the standard Right of Entry form of agreement.
• Relocation Assistance. Eligibility for any relocation benefits should be clearly stated in
the agreement.
No revisions or modifications to these agreements will be permitted unless specifically
approved by the Right of Way Manager and the Commission’s General Counsel.
8.08.03.00 Assignment of Rental Agreements
In some instances it may be of benefit to the Commission to accept an assignment of an
existing tenancy upon acquisition of a property. All such rental agreements to be assigned to
the Commission through property acquisitions are subject to the following:
• Review by the Right of Way Manager prior to acquisition to determine if the tenant is in
compliance with the terms and conditions of the agreement.
• Verified through an Estoppel Certificate prepared as part of the escrow process by the
designated Right of Way Staff.
• The original rental document shall be attached to the Estoppel Certificate for processing
into the Commission’s document custody system. Agreements are converted to
conform to the appropriate the Commission rental agreement document whenever
possible.
• Additional lease/license terms may be negotiated with the owner(s) or representative(s)
and included in a new or amended rental agreement. In addition, a rental adjustment
may be made (upward only) to equal the fair market rental rate established for the
property.
8.08.04.00 Rental Amounts
The Right of Way Staff prepares an analysis of the subject property’s fair market value, based
on a market rate survey of comparable or similar properties in the same general area. A
current real property appraisal may be utilized, if necessary. In most cases, the annual rental
rate (fair market rent) is equivalent to 10% of the fair market value of the property. However,
the rate may be adjusted to reflect any special terms and conditions imposed by the
Commission.
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8.08.04.01 Rent Collection for Properties Used by Third Parties. The Right of Way Staff
performs the following actions to assure the proper and timely payment of rent
and late charges (ongoing payments are generally applicable to license
agreements, but may also apply to certain rights of entry):
• Collection of Rent. All rents shall be collected in accordance with the terms and
conditions of the license agreement. Payments (usually annual) shall be mailed
to the Commission Finance/Accounting Department, who prepares and sends an
invoice before the payment is due, reminding a tenant of the amount and due
date. A check should not be given directly to the Right of Way Staff, unless it is
the first payment prior to the establishment of the account or other special
situation. All checks shall be recorded in the Commission’s accounting log and
posted to the appropriate revenue account.
• Collection Efforts for Delinquent Accounts. Any account where the current
payment is not received in total by the due date is considered delinquent
(usually after thirty (30) days). The Right of Way Staff will work with the tenant
to bring the account current. The Right of Way Manager will determine if
termination of the license should be commenced. A clear and complete written
record of all such actions shall be maintained for each file. Legal counsel may be
consulted, if necessary.
• Assessment of Penalties. Additional amounts are assessed delinquent tenants
based on provisions in the license agreement.
• Three-Day Notice to Quit. In the event delinquent rent is not paid immediately
after contacting the tenant, a Three-Day Notice to Quit may be served on the
tenant. This notice will demand and give the tenant one last opportunity to pay
the total delinquent rent within three (3) days or vacate the property. If the
month-to-month tenant is habitually delinquent and it is decided to terminate
the tenancy, a Thirty-Day Notice of Termination, terminating the tenancy may be
sent.
NOTE: Serving a Thirty-Day Notice of Termination after a Three-Day Notice to
Quit has been served may negate the legal effect of the Three-Day Notice in the
event the tenant does not quit (vacate) the site. If necessary, the matter is then
turned over to legal counsel for the filing of an Unlawful Detainer Complaint to
evict the tenant through the court system and regain possession of the property,
as well as to obtain a money judgment for the delinquent amount and any
attorney's and related costs. The money judgment may then be turned over to
an outside collection agency or, if recommended by legal counsel, the matter
may be pursued through legal proceedings against the tenant.
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• After all of the above-mentioned proceedings have been completed and the
tenant has vacated the property and the license formally terminated, the Right
of Way Staff has the option of determining if the property is available for a new
license.
• If necessary, the Right of Way Staff shall coordinate the storage or removal of
any remaining personal property belonging to the former tenant and secure any
building to prevent unauthorized entry.
8.08.04.02 License Agreements. License agreements may be utilized for long-term uses
(usually over ninety (90) days). Where transportation project schedules permit,
and on projects where immediate use of the real property is not required, the
Commission may license the property, as well as any improvements thereon, to
private or public entities. All new licenses shall be prepared by the Commission
on its standard form of agreement. No revisions or modifications will be
permitted unless specifically approved by appropriate personnel and legal
counsel, on occasion, approval by the Board of Commissioners is required. Also,
it may be necessary for SCRRA to review a proposed license if there is a possible
adverse impact to an existing or proposed transportation project.
All new license agreements include the Commission’s standard provision
requiring the tenant to accept the condition that it is not eligible for any
relocation assistance upon termination of the agreement.
All license agreements with private entities shall provide for payment to the
Commission of a one-time processing fee and an annual fair market rent (public
agencies are not required to pay.
8.08.04.03 Utilities. Private Utilities (shareholder owned) and Public Utilities (governmental
agencies)
• Utility crossing rental rates will be based on fair market land value per linear foot
based on the actual length of the crossing and a standard width of ten (10) feet.
• Longitudinal utility rental rates will be based on fair market value per square foot
for vacant industrial/commercial land.
• An annual administrative base fee of $200 will be charged for each license in
addition to the calculated rent.
• Utility facilities will be charged the $6,000 application fee as well as the annual
rental fee.
•
8.08.04.04 Member and other Exempt Agencies.
• RCTC member and other exempt agencies will be charged a $1 annual rent fee,
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and will not be charged an administrative fee or application fee.
• Agencies will be prohibited from subleasing without written approval from the
Commission or for a profit.
8.08.04.05 Private Users. (Individuals, businesses and non-profit organizations)
Private use types include the following:
• Backyard landscaping
• Sprinkler and irrigation systems
• Patios, garages, gazebos, and other permanent structures
• Parking and shade overhangs
• Billboards
• Access roads
• Commercial agricultural uses, including associated irrigation equipment
• Industry spur tracks
Residential Uses. Rental rates will be based on a minimum of 25% of fair market
rent, defined in Section 8.08.04.00, for vacant residential land. An administrative
base fee of $200 per license is charged one time every five (5) years in addition
to the calculated rent.
Commercial Uses. Rental based on 100% of fair market rent for vacant
industrial/commercial land. An annual administrative base fee of $200 per
license will be charged in addition to the calculated rent.
Non-Profit Organizations. Rental rates will be based on 25% of fair market rent
for vacant industrial/commercial land. An administrative base fee of $200 per
license is charged one time every five (5) years in addition to the calculated rent.
Utility Service and Drainage.
• Rental rates will be based on 25% of the fair market value calculated for private
and public utilities.
• An administrative base fee of $200 per license will be charged one time every
five (5) years to residential and non-profit users in addition to the calculated
rent.
• An annual administrative base fee of $200 per license will be charged to
commercial users in addition to the calculated rent.
Carry-Over Tenants and Owner-Occupants during Interim Period. When a
property is purchased for a project from a private owner, and the timing of the
project is such that the previous tenant or owner can remain on the property for
an interim period, the following policies will apply:
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• Carry-Over Tenants may be charged the same contract rent as was paid to the
former owner. A comparison will be made between the contract rent and the
FMV rent as contained in the approved appraisal to determine if the contract
rent is reasonable. An upward adjustment will be made to the rental amount if
the contract rent is below the current FMV rent for the property.
• Carry-Over Owner-Occupants’ initial rental amount will be the FMV rent
contained in the appraisal upon which the value of the property was
determined. This amount may be subject to adjustment due to month-to-month
occupancy.
Other Fees and Considerations.
• Existing licensees will not be required to pay the fee of $6,000 for license
applications, processing fees, or any one-time fees when renewing or making
minor revisions to their existing licenses.
• Licenses will be revised to reflect any rental rate change or when there is a need
for updated language.
• Land values and rates will be reviewed at least every five (5) years, and more
frequently if appropriate, but may not necessarily result in an increase of annual
rates.
• Uses of Commission property that have significant liability or impact to the
Commission’s use of the property, such as spur tracks and billboards, are outside
of the scope of this policy and will be valued separately.
8.08.04.06 Outdoor Advertising Signs. License agreements covering various existing signs
have been assumed from BNSF and allowed to remain in effect at fair market
value rates. The following policies apply to such agreements, which have
subsequently been put on the Commission’s standard form.
Before an outdoor advertising sign is installed, the billboard company must
obtain all necessary permits from the State, County or local municipality in which
the sign was installed. The license rates for advertising signs were, and will
continue to be, based on the size of the sign, its exposure potential to nearby
traveled roadways, and the appropriate market rate of return. The
determination of the market rate of return may be based on an appraisal, which
generally uses the gross license income of private billboard companies, as
published by the State of California and the Outdoor Advertiser's Association.
Generally, the Commission will expect to receive a minimum of 25% of the
annual gross revenue generated by the signboard. A "base license rate" is
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established annually based on market data appraisal information. This amount is
then increased if the 25% figure exceeds the base license rate.
Existing signboards located on properties acquired by the Commission may be
eligible for relocation and/or removal assistance upon termination of the license
agreement.
8.09.00.00 RENT COLLECTION PROCEDURES
The Right of Way Staff performs the following actions to assure the collection of rent:
• Assists in the collection of rent. All rents shall be collected in accordance with the terms
and conditions of the rental agreement. Rental payment shall be mailed directly to the
Commission Accounts Receivables (A/R) Department for posting to the appropriate
revenue account.
• Assists the Commission accounting staff in the creation, organization, and maintenance
of a rental collection system.
• All rental agreements shall be assigned a Commission agreement identification number
by A/R staff.
• Applies periodic rental adjustments per the lease/license agreement.
• Handles collection efforts for delinquent accounts and rental accounts where the
current monthly is not received in total by the due date is considered delinquent.
• Assesses penalties to delinquent tenants based on provisions in the rental/license
agreement.
• Ensures late charges will be carried in the A/R books and records if delinquent tenants
do not pay.
• Pursues rent collections, including late charges and interest on past-due obligations, if
applicable, pursuant to the terms and conditions of the agreement.
• If tenant payment has not been received by the Commission within 15th calendar days
of the date when due, mails a past due notice to tenant.
• If tenant payment has not been received by the Commission by the last day of the
month when due, mails a second past due notice to tenant.
• If tenant payment has not been received by the Commission by the 15th calendar day of
the following month due, mails a third and final past due notice to tenant.
• If tenant payment has not been received by the Commission by the last day of the
following month, coordinates the filing of an Unlawful Detainer Action and seeks a
Judgment, if necessary, through General Counsel.
8.09.01.00 Establishment of License Rental Amounts
License for Carry-over Tenants. Generally, a carry-over tenant will be charged the same
contract rent as was paid to the former owner. A comparison will be made between the
contract rent and the economic rent, as contained in an appraisal or other market analysis to
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PROPERTY MANAGEMENT CHAPTER 8
determine if the contract rent is reasonable. An upward adjustment may be made to the license
amount if the contract rent is below the current economic rent for the property and the carry-
over tenant will remain in occupancy of the property for more than one month.
All Other Licensed Properties. License amounts for all other Commission owned properties
generally shall be 10% of the subject property's fair market value, as established by a current
appraisal or survey of comparable licensed properties in the area.
8.10.00.00 PROPERTY LIABILITY/LOSS PREVENTION
8.10.01.00 Insurance/Indemnity
The Commission will maintain its own insurance coverage on all of its properties. Insurance
coverage for acquired property shall take effect at the time of the title transfer to the
Commission. All parties using the Commission property under license agreements or rights of
entry will be required to maintain adequate liability and property insurance based on the
Commission's insurance requirements.
All agreements to use the Commission's property shall include an indemnity provision, which
holds the Commission harmless "from and against all claim, liability, penalties, liens, suits,
judgments, cost and expenses, including without limitation, damage to property or injuries to
or death of any person or persons by whomsoever it is caused, arising directly or indirectly from
the tenant's use of the property".
All users/tenants must accept the Commission's indemnity provisions in their entirety and
provide evidence of the required insurance coverage prior to taking possession of the
Commission's property.
The Commission will maintain liability insurance coverage on non-leased/licensed properties as
determined by the Commission. Insurance coverage for acquired property shall take effect at
the time of the title transfer to the Commission. All parties using Commission property under
leasing, licensing, or other agreements will be required to maintain adequate liability and
property insurance based on the Commission’s insurance requirements, unless modified or
waived with the consent of the Commission. Commission staff shall review and approve the
liability insurance and indemnification provisions prior to the completion of all property
agreements. Upon receipt of insurance documents from new tenants, they shall forward the
tenant’s insurance documents to the appropriate staff for approval.
The Right of Way Staff monitors the uses permitted under property agreements and the
potential risks and liabilities associated with the uses. The Commission determines the steps
necessary to reduce risk and the type and amount of insurance required to protect the
Commission. The Right of Way Staff will take the following steps to reduce risk:
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• Notifies the Commission’s Asset Manager, Right of Way Manager, Facilities Manager,
and if necessary, legal counsel, of any unsafe activities or unsafe conditions and
provides recommendations for corrective action.
• Periodically reviews the leased/licensed sites to verify compliance with the
environmental provisions of the agreement.
• Evaluates the compatibility of the use.
• Ensures that the property’s use is legal.
• Insists on adherence to safety policies.
• Reviews the indemnification and hold harmless clauses.
• Researches the insurance requirements.
• Determines the types of insurance policies required, the evidence needed, and the
coverage limitations.
8.10.02.00 Ensure Risk Management, Hazard Protection and Liability Reduction
The Right of Way Staff shall monitor the uses permitted under the each right of entry or license
agreement affecting the Commission property, as well as the potential risks and liabilities
associated with such uses. After consulting with insurance personnel, the Right of Way Staff
determines the steps necessary to reduce risk and the type and amount of insurance required
to protect the Commission. The Commission staff takes the following steps to reduce risk:
• Conducts regular property inspections
• Evaluates the compatibility of use with adjoining properties
• Reviews the existing and proposed property use with the Commission, BNSF or SCRRA,
as appropriate
• Ensures that the property's use is legal
• Insists on adherence to safety policies
• Reviews the indemnification and hold-harmless clauses in the agreement
• Determines the types of insurance policies required, the evidence needed (certificates),
and the coverage limitations
If a use is identified as being in non-compliance of an agreement or poses a risk to the
Commission, BNSF, or SCRRA and/or the public, the tenant can be given a Three-Day Notice to
Cure Defect or Quit and or terminated similar to the procedures mentioned above.
8.10.03.00 Security Measures
The Commission is responsible for the following security procedures for Commission-owned
property:
• Responds to safety and security inquiries
• Determines when security measures are needed
• Coordinates the proper administration of security with appropriate security providers
• Coordinates any police activities with the appropriate law enforcement agency
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8.10.04.00 Hazardous Waste and Materials
All properties are to be periodically inspected for adverse environmental conditions. If any
evidence of hazardous material or contamination is detected during routine management
activities, the Right of Way Manager and Legal Counsel shall be contacted immediately. A plan
of remediation will be developed by an approved environmental consultant.
8.10.05.00 Property Security
The Commission-owned land and improvements that are unoccupied will be protected against
unauthorized use, vandalism, and damage under the direction of the Right of Way Staff and
coordination with maintenance staff and/or local police agencies, as needed.
When a parcel has been assigned to a construction project, the security of the construction site,
including all materials, equipment, supplies and off-site area is the responsibility of the
construction Contractor. The contractor's activities shall be monitored by the Project Manager
and staff.
The security of equipment, facilities or other structures on Commission leased and licensed
property shall be the sole responsibility of the lessee/licensee until the lease/license is
terminated. The Right of Way Staff is responsible for conducting periodic property inspections
to verify that the lessee/licensee is securing the property as required by agreement in a
reasonable manner.
8.10.06.00 Property Maintenance
All Commission property shall be maintained in a clean and orderly condition. If this condition
does not exist, the Right of Way Staff shall request the Commission maintenance staff and/or
approved vendor to implement the appropriate corrective measures to improve the property’s
appearance.
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DEMOLITION, CLEARANCE AND RIGHT OF WAY CERTIFICATION CHAPTER 9
9.00.00.00 DEMOLITION, CLEARANCE AND RIGHT OF WAY CERTIFICATION
9.01.00.00 OVERVIEW
The demolition and clearance of structures and other improvements on acquired property is
included in the property management function. The Commission must manage real property
acquired for a project until it is required for construction.
Improvements include building structures or any other obstructions within the proposed right
of way including the following:
• Utilities
• Underground storage tanks
• Wells
• Signs
• Cell towers
• Outdoor advertising signs
• Concrete and asphalt
• Landscaping, including trees
9.01.01.00 Federal Funds
Federal funds may be used to cover costs for the disposal and clearance of real property,
pursuant to 23 CFR Subpart B, section 710.203(b)(4). Accounting documentation will be
required in order to bill federal participating revenue and expenses accurately.
9.01.02.00 Initial Clearance
Factors that should be analyzed in determining clearance schedules include:
• Increased costs - for debris pick-up, weed abatement and dumping as improvements are
removed
• Attractive nuisance - increased exposure to crime, vandalism or personal injury from
individuals attracted to the property
• Rental income balanced against the cost of upkeep of rental units
• Ability to group multiple demolitions together, therefore reducing per unit demolition
costs
• Environmental impact during nesting periods
9.01.03.00 Emergency Clearance
Prior to environmental clearance, improvements must not be removed except in cases of
emergency. Emergency is defined in the Caltrans Environmental Regulations as “a sudden,
unexpected occurrence, involving a clear and imminent danger, demanding immediate action
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to prevent or mitigate loss of, or damage to, life, health, property, or essential public services.”
Emergencies may include, but are not limited to such occurrences as fire, flood, earthquakes,
riots, accidents or sabotage. Notification to the Southern California Air Quality Management
District (SCAQMD) is required if the existence of asbestos or lead paint is suspected.
9.01.04.00 Historic Structures
Historic structures will be identified and addressed during the environmental clearance process.
If applicable, documentation that details the compliance with the mitigation and/or disposition
of the historic structure will be necessary.
9.01.05.00 Pre-Demolition Activities
An inventory of improvements and personal property will be prepared and included in the
appraisal report. The acquisition Project Manager will forward the inventory report to Right of
Way Staff, along with anticipated vacation dates of the occupants. Right of Way Staff can then
determine the best means of clearance based on the type of structure, the right of way
requirements, the construction schedule and the personal property that may be included in the
inventory.
Demolition of structures shall be scheduled as soon as possible when occupant vacation occurs.
Close coordination with the acquisition Project Manager ensures that demolition activities
begin on a timely basis. Weekly field inspections shall be performed by Right of Way Staff to
ensure that properties are secured immediately upon vacation. Upon contract award, the
demolition contractor becomes responsible for securing the property with boarding, fencing,
etc.
9.01.06.00 Personal Property
If time allows, movable items that are purchased as a part of the acquisition may be sold by
public auction. The property owner may elect to retain an improvement. If owner retention is
offered during negotiations, the time frame for removal shall be included in the Purchase and
Sale Agreement. Communication with the Relocation Agent should ensure that the owner was
not paid to move items that are purchased. Fixtures included in the real estate are generally
included for demolition, however the cost of demolition should reflect an offset for salvage
value.
9.01.07.00 Asbestos and Lead Paint Abatement
All improvements shall be inspected for the presence of Asbestos Containing Materials (ACMs),
and lead paint when applicable, prior to demolition or removal. A qualified and licensed
environmental consultant shall perform hazardous materials testing. A report will be prepared
that will include testing results and recommendations, which will be forwarded to the
abatement contractor. All activities must comply with the Environmental Protection Agency and
all state and local government regulations. The Commission shall comply with the SCAQMD
guidelines. Air clearance will be monitored by the abatement contractor prior to removal of
hazardous materials. Removal of ACMs and lead paint will be performed through the
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demolition contract by a qualified and licensed abatement contractor and will comply with all
applicable laws, regulations, ordinances and recommendations of the inspector.
9.01.08.00 Demolition Contract
Improvement clearance can be scheduled during the acquisition phase of the project using
demolition contracts or it can be included as a work item in the construction contract. Certain
circumstances, such as inaccessibility to the property improvements, may call for using the
latter methodology. A field inspection of the property is necessary to verify that items included
in the inventory report are still physically included on the property. The demolition contractor
will bid the work based on the items included in the scope of work, the results in the asbestos
and lead paint survey and a field review of the property.
The bid package shall be prepared and will include the following:
• Scope of work
• Location of the property
• Ancillary items that shall be included, i.e. trees, fencing, signs, underground storage
tanks, etc.
• Contact numbers as applicable
• Anticipated length of time for the demolition
The Commission uses a scope of work for demolition tasks that includes the following:
• Asbestos abatement
• Securing of property
• Order of work
• Applicable standards
• Compliance with regulations and ordinances
• Any additional pertinent information
State of California prevailing wages, as determined by the Department of Industrial Relations,
must be paid to all workers employed on public works projects when the public works project is
over $1,000.
Demolition is awarded on a lowest-bidder basis, pursuant to public works contracting
regulations. Bids can be submitted within the week, particularly on smaller jobs where the
contractors inspect the property on their own. For larger jobs Right of Way Staff shall schedule
a site-walk with all on call contractors. As the duration of demolition is generally for a short
period, the bid price shall be lump sum. The contractor’s bid shall include all permits and fees,
equipment rental, asbestos abatement, tank removal and subcontract work. Once bids are
received and a contractor selected, the task order shall be completed and sent to the
contractor for signature on an expedited basis. Once executed, a Notice to Proceed will be
issued.
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9.01.09.00 Clearance
Prior to demolition, the first order of work is to notify SCAQMD, which requires a ten (10)
working day notification prior to asbestos abatement. If an improved property becomes a
health and safety hazard, Right of Way Staff can request that the SCAQMD notification period
be waived on an emergency basis. During the SCAQMD notification period, the contractor will
notify Underground Service Alert for utility location, schedule equipment and secure the
property. Prior to demolition, Right of Way Staff must notify utility companies in writing to
discontinue service.
Once demolition activities commence, monitoring of the removal shall be documented in
writing and maintained in the parcel file. When final clearance is achieved, a written notice shall
be forwarded for inclusion in the construction documents.
9.02.00.00 RIGHT OF WAY CERTIFICATION
9.02.01.00 Elements and Definition
The Right of Way Certification procedure identifies the acquisition status of necessary right of
way for the purpose of advancing a project to construction. It also addresses the status of any
required relocation activities necessary on the project. The key elements are as follows:
• Acquisition of right of way in accordance with laws and requirements
• Relocation of people, businesses or personal property, so that the contractor may enter
upon the properties
• Identification of encroachments and acquired structures within the right of way and an
explanation of who will remove them
• Identification of hazardous waste that may be present at the site with information on
contractor’s responsibility for safe disposal
• Identification of all utility conflicts
Definition of Right of Way Certification. Right of Way Certification is a written statement
summarizing the status of all right of way related matters pertaining to a proposed construction
project. The purpose of the certification is to document the construction project is ready for
advertising and states the following:
• Real property interests have been or are being secured.
• Physical obstructions including utilities and railroads have been or will be removed,
relocated or protected as required for construction, operation and maintenance of the
proposed project.
• Right of way acquisition and relocation assistance program requirements were
conducted in accordance with applicable federal and state laws and procedures.
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There are three levels of certification recognized by the Federal Highway Administration
(FHWA) and four levels recognized by the State. FHWA recognizes certification levels 1, 2 and 3
(Work Around). A project can be advertised, bid proposals opened and a construction contract
awarded using these certification levels. The State also recognizes a certification 3. This level
allows for a project to be advertised only, bids may not be opened.
9.02.02.00 Requirements
Prior to physical construction, the Right of Way Staff shall prepare a statement that includes the
following:
• All right of way is clear, or if not, appropriate notification is given of any work
concurrent with construction.
• All people have been relocated to decent, safe, and sanitary housing and one of the
following applies:
- All needed right of way has been acquired and all occupants have moved.
- Not all needed right of way has been acquired, but a possession and use agreement
has been obtained on all parcels and all occupants moved.
- Acquisition of right of way is not complete and occupants are still on the project
(this action requires a full explanation and special assurances about occupant
protection).
- All utilities have been relocated or protected in place.
• Right of way has been acquired in accordance with applicable federal, state and local
laws.
• Federal and state relocation assistance and payment rules were followed.
9.02.03.00 Partial Right of Way Certification
On design/build projects or when required in order to advance the project schedule, right of
way may be certified for construction on a partial basis or on parcel groups, provided all of the
elements and requirements under Section 9.02.02.00, above, are satisfied.
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ENVIRONMENTAL INSPECTION, INVESTIGATION AND REMEDIATION CHAPTER 10
10.00.00.00 ENVIRONMENTAL INSPECTION, INVESTIGATION AND REMEDIATION
10.01.00.00 GENERAL
10.01.01.00 General
When acquiring properties for transportation (or transportation-related) projects, it is the
Commission’s policy to fully consider all aspects of potential hazardous waste sites ensuring
that adequate protection is afforded to employees, workers and the community prior to, during
and after construction, and if possible, to avoid all potential aspects of hazardous waste.
The Commission strives to identify, investigate and cleanup sites at the earliest opportunity
during the project development process. The process is completed in accordance with
applicable governmental hazardous waste requirements.
Every project that includes significant excavation, structure demolition or modification, or the
purchase of new right of way, will require an Initial Site Assessment (ISA) to determine if known
or potential hazardous waste is present within the project limits. Utility relocations, donations
of property, and hardship and protection acquisitions must consider possible hazardous
waste/material issues.
A material is hazardous if it poses a threat to human health or the environment. Hazardous
substances are substances or combinations of substances as defined in Title 22, California Code
of Regulations, Section 66680, Division 20, Health and Safety Code, Sections 25115 and 25117,
or those substances defined in 49 CFR 171.8. Hazardous materials may be any of a large group
of the products listed below:
• Flammable
• Reactive (subject to spontaneous explosion or flammability)
• Corrosive
• Toxic
• Radio-active
The term hazardous waste applies to the storage, deposit, contamination, etc. of a hazardous
material that has escaped or been discarded or abandoned and that may be defined in general
terms as being any of the above.
10.01.02.00 Technical Resources
It is the Commission’s policy to establish an approved list of on call professional consultants
through the procurement process who can be available to assist in resolving hazardous waste
problems. Early and continued involvement by this resource is essential in avoiding unnecessary
cost and delays from hazardous waste problems. Legal counsel is another resource that may be
consulted regarding documentation for cost recovery.
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10.01.03.00 Permit to Enter
California Code of Civil Procedure (CCP) Section 1245.010 allows an entity authorized to use
eminent domain to enter a property to make photographs, studies, surveys, examinations,
tests, soundings, borings, samplings or appraisals.
CCP Section 1245.020 provides that if the public entity’s activities could damage or cause
substantial interference with the property, then written consent or a court order is required.
Methods of obtaining entry to properties for testing include the following:
• Entry without permit. If there are non-physical, no “actual damage” surveys,
investigations or testing, the Commission’s legal counsel has advised that the
Commission may choose to access property without written consent or court order. In
this case, the Commission shall give reasonable advance notice to the property owners
in the event of obstacles such as gated access, animals or problem occupants.
• Permit signed by the owner. For access that will involve physical intrusions such as
drillings, borings and monitoring wells, the Commission should first attempt to obtain
written consent from the property owner. The Commission should seek consent in all
types of physical intrusion situations, even when the Commission and its consultants
intend to re-fill/repair any holes or wells and not cause any permanent damage.
“Owner” should be given a broad interpretation to include the holder of any interest
likely to be affected by the testing, including, for example, a tenant in possession. All
parties with an interest in the property should sign the entry form, when possible,
however the written consent of one owner is sufficient. CCP Section 1245.060 provides
that if the entry and activities upon property cause actual damage to or substantial
interference with the possession or use of the property, the owner may recover for such
damage or interference. In some cases, it may be appropriate to pay for a voluntary
right of entry for environmental purposes. For properties that will incur damage or
substantial interference for testing, legal counsel should be consulted.
• A Court order to enter the property. If property owners will not give written consent, it
may be necessary to petition the court for a Permit to Enter. CCP Section 1245.030
allows a public entity to petition the court. Section 1245.030(b) provides that at the
hearing, the court determines the term and the scope of the entry that will be allowed.
The court also determines the probable amount of compensation to be paid for the
actual damage to the property and interference with its possession and use. If the court
requires that a deposit of compensation be made in advance, the property owner can
only make a claim against that deposit if the public entity’s activities have caused actual
damage or substantial interference. The request for entry must be for specific testing
and must identify exact locations for borings. Any additional testing may necessitate
further court orders which must also be obtained by legal counsel, and must be specific
and exact.
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Further Legal actions may be compromised if required entry is not specific as to the proposed
activity and specific as to location.
10.02.00.00 HAZARDOUS WASTE PROCESS
10.02.01.00 Discussion in Project Study Report
Hazardous waste problems, or potential problems, will generally be discussed in the
Environmental Impact Statement (EIS)/Environmental Impact Report (EIR) and must be
discussed in the Project Study Report (PSR), along with a recommended action for avoiding or
mitigating hazardous waste sites.
10.02.02.00 Hazardous Waste Activities
Activities during acquisition will include the following:
• Secure entry approvals from property owners as required for investigations.
• Identify and track all parcels requiring hazardous material inspections.
• Prepare and administer hazardous material investigation contracts.
• Monitor projects and parcels requiring investigations for completion status in
accordance with schedule and lead-time requirements.
• Approve investigation reports on hazardous material and projected remedial actions
and costs.
• Determine and communicate market value inspection needs when they are different
from the remediation requirements for project construction.
• Coordinate with legal counsel as necessary.
• Identify potential hazardous waste problems for utility relocation easements to be
acquired as early as possible so they may be cleared.
10.02.03.00 Site Investigation
A limited-scale site investigation is intended to identify any potential contamination issues
across the project as a whole and to get a general idea of the magnitude of any problem. Site
investigations shall include, but are not limited to the following:
• Characterization of subsurface geologic and hydrologic conditions
• Identification and extent of contamination
• Analysis of potential remedial actions
Permits to Enter to gain permission to enter onto the property, if necessary for the site
investigation, should be initiated as soon as possible.
Site investigations can vary in detail, depending on the number of sites to be investigated, the
project schedule and the number of project alternatives. After a Preferred Alternative is
selected, a more complete site investigation is conducted to fully characterize the site.
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If, after completion of the ISA, a potential hazardous waste problem exists, a meeting will be
scheduled to discuss alternatives, including avoidance. If avoidance is not prudent or justified
by the site assessment information, then a site investigation will be conducted.
10.02.04.00 Environmental Site Assessments
Environmental Site Assessments are generally conducted shortly before acquisition on a parcel
specific basis. There are three types of environmental site assessments – transaction screens,
Phase 1’s and Phase 2’s.
10.02.04.01 Transaction Screen Assessment Reports. Transaction Screen Assessment reports
adhere to the American Society of Testing & Materials Standard E-1528-06 for
Limited Environmental Due Diligence. The transaction screens are used as an
initial screen on low-risk properties. Transaction screen reports are limited in
nature and no longer meet the regulations required for the "Landowner's
Liability Protection."
10.02.04.02 Phase I Environmental Site Assessments. Phase I Environmental Site
Assessments are required to the complete the appraisal process to determine if
the condition of the site will have an impact on the fair market value of the
parcel. Phase I Environmental Site Assessment shall be in conformance with
ASTM International (ASTM) Standard E1527-13, Standard Practice for
Environmental Site Assessments: Phase I Environmental Site Assessment
Process. For partial acquisitions the work will be limited to the acquisition areas
only and not the entire parcel. The Environmental Site Assessments will be
performed under the responsible charge of an environmental professional and
will include the following components:
• Historical sources including building department records, historical aerial
photographs, local street directories, fire insurance maps, and other credible
sources of past uses or occupancies shall be reviewed.
• Regulatory Records including local, state, tribal and federal databases will be
reviewed according to the current search distances within ASTM E1527-13.
• Review of Regulatory Files or Interview of state and local government officials
conducted in person, by telephone, or in writing to obtain information on
permits and compliance history associated with hazardous substances and
petroleum products, and information indicating recognized environmental
conditions in connection with the property.
• Owner/Occupant Interviews including past and present owners, occupants,
neighbors, and/or other persons who are familiar with the property shall be
attempted in person, by telephone, or in writing regarding the history,
operations, management, waste management practices, and other
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environmental considerations for the property as those persons are available
and open to an interview.
• Site Reconnaissance including a reasonable observation of the property and
structures, the periphery of the property, the interior common areas of
structures, and a representative sample of occupant spaces. Items such as
current and past uses of the property and adjoining properties; obvious geologic,
hydrogeologic, and topographic conditions; structures; roads; potential
hazardous substances and petroleum products; storage tanks; odors; pools of
liquid; drums; containers; surface waters; suspected fill materials; stained soil or
pavement; stressed vegetation; solid waste; waste water; wells; and septic
systems shall be noted as reasonably and visibly observed.
• A report summarizing the results and recommendations.
10.02.04.03 Phase II Environmental Site Assessments. Based on the findings of the Phase I
Environmental Site Assessment, a Phase II Investigation may be warranted. In
general, this may include a number of the following:
• Prepare a site-specific health and safety plan.
• Notify Underground Service Alert (USA) a minimum of 48 hours prior to drilling
activities to clear public utilities.
• Secure the necessary Boring Permit from the appropriate regulatory agency.
Permit acquisition will involve submitting a completed application and site plan
to the agency for review and approval and remitting the necessary fees.
• Notify the applicable regulatory agencies prior to drilling/backfilling activities.
• Perform a geophysical survey on the subject property to identify the location of
former on-site tankholds and/or existing USTs, piping, and/or associated
features and to additionally clear boring locations of utilities.
• Advance a number of borings based on the identified recognized environmental
conditions for the collection of soil gas, soil, and/or groundwater samples.
• Field-screen each soil sample using a photoionization detector.
• Prepare soil gas samples, soil samples and groundwater samples for laboratory
analysis for chemicals of concern as needed.
Sampling procedures will generally conform to the requirements of the
appropriate regulatory agencies. A state-certified laboratory will analyze the
samples and the project will be performed under the responsible charge of a
qualified representative. Based on the results of the investigation, the contractor
will compare the analytical results with the applicable requirements regarding
regulatory notifications of a release and requirements for additional
investigation and or cleanup.
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10.02.05.00 Notify Owner and Appropriate Regulatory Agencies
When a site investigation has identified contamination at an actionable level, the property
owner and appropriate regulatory agencies will be notified of the results in accordance with
regulatory requirements. Notification shall be made to the owner and any other potentially
responsible parties of their obligation under the law for mitigation of the contamination.
Determination shall be made whether the owner is able to and intends to investigate and
remediate the site such that the project schedule can be met. Thorough site investigation
records should be maintained separately for potential use in cost recovery actions.
10.02.06.00 Hazardous Waste Problems Discussed in Project Report
Following completion of the site investigation and environmental studies, alternatives to avoid
the identified hazardous waste must be identified and evaluated. These problems and the
associated alternatives for avoidance or mitigation must be discussed in any project report and
environmental document. The reports, as appropriate, must include a discussion of any
anticipated site cleanup, including a cost and schedule estimate.
10.02.07.00 Hazardous Waste Strategy
If the property owner has agreed to accept responsibility for the hazardous waste remediation,
and after investigation, the owner decides to accept responsibility for both the execution and
expense of the cleanup, the Commission shall develop a plan of action that incorporates the
owner's intent and specifies a program which shall be followed. It is also possible for the owner
to request the Commission clean up the hazardous waste. In this case, the cleanup costs, as
well as any additional investigative work required for the cleanup, would be deducted from the
appraised property value, or withheld in escrow.
If the property owner cannot or will not investigate and remediate the site, the Commission
shall continue investigating the hazardous waste problem. It will be necessary to determine
whether time allows for hazardous waste investigation and remediation prior to construction of
the transportation project or whether it will be necessary to perform the clean up during
construction. Legal counsel may be requested to oversee cost reimbursement from the owner
and/or responsible parties.
10.02.08.00 Cleanup by Owner and/or Responsible Party
When the owner and/or responsible party has accepted cleanup responsibility, the Commission
is responsible for monitoring their investigation and cleanup progress and to make appropriate
schedule changes. If at any point during the process, the owner's progress is unsatisfactory,
Right of Way Staff must determine if the schedule slippage is such that the Commission should
take over the investigation and/or remediation process.
The Commission shall prepare an estimate of any cleanup costs incurred and provide a report
to the appraiser for inclusion in the appraisal report.
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10.02.09.00 Remedial Investigation / Feasibility Study
A comprehensive Remedial Investigation/Feasibility Study (RI/FS) will be required if substantial
contamination is present, or if the site is a listed as a state or federal Superfund site. The RI/FS
will be performed to develop sufficient information to make an informed remedial alternative
selection that eliminates, reduces and/or controls the risks to human health and the
environment.
The Remedial Investigation is a site investigation adequate to characterize the site's size and
the types and quantities of contamination that are present. The Feasibility Study is an
evaluation of the types of remediation that will clean up the site's contamination. Remediation
strategies range from excavating the contamination for disposal at another site to complex
vapor extraction systems or bioremediation techniques.
The RI/FS work will be coordinated with regulatory agencies and is subject to changes pursuant
to the requirements of the agencies. Legal counsel must be contacted regarding appropriate
hazardous waste investigation records to be retained for cost recovery actions.
10.02.10.00 Hazardous Waste Management Plan
The RI/FS for potential mitigation measures for the hazardous waste site constitutes the
Hazardous Waste Management Plan (HWMP). The HWMP is a decision-making document that
describes the management of a contaminated site schedule, including cleanup. It summarizes
the results of the RI/FS. The RI/FS will include a list of remediation options for cleaning up the
site. Typically the HWMP is developed at the conclusion of the hazardous waste investigation.
Involvement of potential responsible parties is advised, so that any cost recovery efforts cannot
be challenged on the basis that the parties were excluded from the mitigation decision process.
10.02.11.00 Community Involvement Plan
It is advisable to provide the public with early notification of significant hazardous waste
investigations and subsequent cleanup activities. This often defuses potential adverse public
reaction that may otherwise occur when the cleanup work begins. The lead regulatory agency is
responsible for coordinating the community relations in conjunction with the Commission’s
Public Affairs Department for all community involvement issues and activities.
10.02.12.00 Remedial Action Plan
Once a cleanup strategy has been selected, a Remedial Action Plan (RAP) needs to be
developed to implement the remediation. The RAP specifies the details required to carry out
the selected remediation strategy. The RAP will be prepared by an on call consultant firm.
Depending on the type and extent of contamination, the RAP may require approval by
appropriate regulatory agencies and necessary public notification. On-site treatments will need
permits from various regulatory agencies.
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10.02.13.00 Recovery Actions
Whether the contamination is encountered prior to construction or during the construction
phase, legal counsel may assist pursuing appropriate cost recovery from potentially responsible
parties. The Right of Way Department will provide information for such recovery action.
10.02.14.00 Underground Storage Tanks
Underground tanks should be removed as soon as possible. The contractor must obtain the
required permits for operating or closing all existing tanks from the local permitting agency, and
this information must be included in the removal contract. Also, any contract for tank removal
must include provisions for barricades and cleanup.
Prior to any tank removal, an agreement must be made with the tenant in occupancy and the
owner of the property. Non-leaking tanks may have a minor deposit of product under the tank
that can be cleaned up during the tank removal.
The State Underground Storage Tank Law is contained in Division 20, Chapter 6.7, Health and
Safety Code, and Underground Tank Regulations, Title 23, Chapter 3, Subchapter 16, California
Administrative Code.
10.02.15.00 Hazardous Materials in Property Improvements
Asbestos containing materials (ACM) must be fully considered to ensure property with such
hazardous material is not acquired without adequate prior investigation, and clearance
abatement. Hazardous materials primarily include asbestos, but can include Polychlorinated
Biphenyls (PCBs) and lead based paint. Inspections will be performed by licensed, qualified
persons. The property owner must give prior written permission before an inspection can be
made. The inspection will include a determination of the following:
• The type, extent, location, and quantity of ACM (and any other suspected significant
hazardous material), within the structure
• Condition of the ACM - friable, non-friable, stable or deteriorating
• Identification of and cost of appropriate remedial action(s) are removal, other
acceptable steps (encapsulation) and cost of restoration
Every improved property will be inspected except those improvements constructed with
materials which can be easily determined do not contain hazardous materials (example: all
metal storage buildings).
10.03.00.00 RESPONSIBILITY FOR CLEAN UP
10.03.01.00 During Acquisition
If a contaminated site is encountered and unavoidable, the Commission should make every
effort to have the owner and/or responsible party investigate and clean up the contamination
prior to acquisition. In cases where the Commission must clean up contaminated property, cost
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reimbursement will be sought from the responsible party. Right of Way Staff will provide the
primary source of contact with property owners and operators.
Regardless of who is responsible for performing the cleanup of a contaminated project site,
such cleanup should be completed at the earliest opportunity. Only in exceptional cases, (e.g.,
contamination in areas that must be excavated during construction) will mitigation of the
contaminated materials be allowed concurrently with project construction.
Once contamination is known, the property owners shall be advised of their responsibility
under the law to clean up all identified hazardous waste. The preferred procedure is to not
acquire property in its contaminated state, and all efforts possible should be extended to obtain
cleanup prior to acquisition.
Right of Way Staff may elect to proceed with acquisition if it is determined that no significant
problem exists and further investigation is unnecessary. It may be in the best interest of the
Commission to acquire property if potential hazardous waste contamination risks and costs are
low or the problem can be handled with engineering methods during construction. The decision
to acquire must be fully documented in the parcel file and the appropriate clause must be
included in the Purchase and Sale Agreement.
If further investigation is necessary, Right of Way Staff will continue contact with owner to
advise of the process being pursued and to obtain necessary permits to enter. When testing is
complete and cleanup costs are known, the appraisal will reflect the effect that the
contamination and required cleanup has on market value.
Settlements, whenever possible, are to be based on cleanup prior to acquisition using the
primary appraisal. Settlements made where cleanup occurs after acquisition are to be handled
as follows:
• Offers made prior to obtaining a revised appraisal will be made contingent on cleanup
and shall be confirmed in writing. When the appraisal has been revised to include an
alternate, considering the effect on the market value, the current offer must be
withdrawn and a new offer made.
• If settlement is reached based on the Commission or its consultant doing the cleanup
based on the primary appraisal, the amount of the estimated cleanup shall be withheld
and the appropriate clause will be included in the Purchase and Sale Agreement.
Appropriate documentation is required.
• If settlement is not reached where money is withheld, it may be necessary to acquire
based on the alternate appraisal wherein the Commission is purchasing the property as
is, after the consideration of cleanup is reflected in the acquisition offer. Appropriate
documentation is required.
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• Where settlement cannot be reached and the property owner will not clean up the
property, it may be necessary to file a condemnation suit and obtain an Order of
Immediate Possession. The appraisal must be revised to include an alternate that
reflects the effect of the hazardous waste on market value. The current offer must be
withdrawn and a new offer made prior to filing an action.
10.03.02.00 Purchase and Sale Agreements for Contaminated Property
Properties known or suspected to contain hazardous waste should be cleaned up by the owner,
to the satisfaction of the Commission, prior to the close of escrow. When this is not feasible or
practical, the appropriate clause listed below, depending on the situation, will then be included
in the contract.
Tested - No Contamination Found. When a decision has been made to proceed with the
acquisition and the property has been examined and/or tested and no contamination has been
found, the following clause will be included in the Purchase and Sale Agreement:
“The acquisition price of the property being acquired in this transaction reflects the fair-market
value of the property without the presence of contamination. If the property being acquired is
found to be contaminated by the presence of hazardous waste which required mitigation under
federal or state law, the Commission may elect to recover its cleanup costs from those who
caused or contributed to the contamination.”
Tested - Contamination Found. When contamination has been found, the amount of cleanup
costs for which the owner is liable shall be deducted from the settlement, and where
contamination is found, legal counsel will be consulted to determine modifications needed to
the Purchase and Sale Agreement.
“It is understood that the property being acquired has been used for ____ and that there is
contamination of the soil and/or groundwater. Therefore funds in the amount of $____ have
been withheld from the owner by the Commission to be used for cleanup costs. If actual
cleanup costs exceed the deducted amount, the owner will reimburse the Commission for the
additional costs. If actual cleanup costs are less than the amount withheld from owner, the
excess withheld will be refunded to owner.”
Not Tested - Current Owner’s Hazardous Material Use. When a decision has been made to
proceed with the acquisition and when the nature of the owner’s current or past operations
and hazardous material use is known to all of the parties, legal counsel will be consulted to
determine modifications needed to the Purchase and Sale Agreement.
Not Tested - Known Past Hazardous Material Use. When a decision has been made to proceed
with the acquisition, the current use/operation has not been contaminated and the owner says
they have some knowledge that previous use/operations may have caused contamination, legal
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counsel will be consulted to determine modifications needed to the Purchase and Sale
Agreement:
Not Tested - Unknown Hazardous Material Use. When a decision has been made to proceed
with the acquisition and the possibility of hazardous waste is suspected, but the owner
indicates no knowledge of present or past operations which could have resulted in
contamination, the following clause will be included in the Purchase and Sale Agreement:
“The Grantor hereby represents and warrants that during the period of Grantor’s ownership of
the property, there have been no disposals, releases or threatened releases of hazardous
substances on, from or under the property. Grantor further represents and warrants that
Grantor has no knowledge of any disposal, release, or threatened release of hazardous
substances on, from, or under the property which may have occurred prior to Grantor taking
title to the property. The acquisition price of the property being acquired in this transaction
reflects the fair-market value of the property without the presence of contamination. If the
property being acquired is found to be contaminated by the presence of hazardous waste
which requires mitigation under federal or state law, the Commission may elect to recover its
cleanup costs from those who caused or contributed to the contamination.”
10.04.00.00 APPRAISAL OF CONTAMINATED PROPERTY
10.04.01.00 Hazardous Waste Identification during Appraisal Inspection
The appraiser may obtain information to assist in identifying possible hazardous waste sites
that may have been missed. This includes observing potential problems during the inspection of
the subject property. It also includes questioning the owner and lessee about current and past
possible hazardous material and possible contamination on the site including underground
storage tanks. When previously undiscovered tanks do exist, the appraiser must obtain as much
information as possible regarding tank size, age, construction, location and contents.
The appraiser must document observations and discussions with the property owner, lessee or
other occupants regarding possible waste problems in the parcel diary. As a general guide,
some present and prior land uses where hazardous waste/hazardous material problems may
exist are set forth below:
• Commercial and industrial sites such a service stations, muffler shops, bulk plants, paint
manufacturing companies, machine shops, plating works, dry cleaning plants, chemical
and fertilizer companies which may use or have used solvents, cleaning compounds,
catalysts, cutting oils, plating solutions, dyes, paints or other chemicals
• Junk yards, auto wrecking yards, dumps or landfills
• Underground or above ground tanks for storage of liquid hydrocarbons, pesticides or
other toxic materials
• Existing buildings with asbestos siding, roofing, ceiling material, floor tiles, fireproofed
doors or insulation on water pipes, heaters, heating ducts, steel framing, etc.
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• Disposal sumps or pits which may contain agricultural chemicals or industrial waste
• Utility substations or storage/maintenance facilities
• Sites where contamination may have resulted from an adjacent property owner's
operation
10.04.02.00 Valuation
Regardless whether the right of way requirement is fee or easement, the real property will be
appraised recognizing the effects of hazardous waste and hazardous material on its market
value.
The valuation of property that involves an identified hazardous waste site will include the
market value of the property as if it is free and clear of the hazardous waste and the market
value of the property considering the effects of the hazardous waste. The opinion of market
value of a property in its contaminated condition must consider the following:
• Local regulatory agency cleanup requirements
• Estimated cleanup cost furnished by others
• Market data involving sales, offers or listings of properties with comparable cleanup
problems
• Marketability of parcels with known hazardous waste cleanup problems considering
opinions of developers, brokers, lenders, insurers, investors or other informed persons
• Any other pertinent data and opinions
Adequate comparable data may not be available to directly conclude a fair market opinion of a
property in its contaminated condition. In such cases, the alternate appraisal may consider
deducting the estimated cleanup cost from the value of the property as if it is free and clear of
the hazardous waste. The estimated cleanup cost should reflect what a market value buyer
would reasonably expect to pay in order to utilize the property at its highest and best use. This
does not necessarily follow the remedial methods, costs or construction schedule associated
with the project. Also, the property's highest and best use could change depending on the
nature and extent of contamination and alternate remediation options and costs.
Analysis must consider the cleanup requirements, for highest and best use, of the local
regulatory agency having jurisdiction. Full cleanup may not be required or can be delayed for a
certain period of time. Thus, the cleanup estimate may need to be adjusted or discounted to
reflect the market value situation.
Appraisals that result in a negative value (cost of hazardous waste cleanup exceeds market
value of cleared property) will be shown as "$0."
Where possible or confirmed hazardous waste problems do exist, a full discussion will be
included in the body of the appraisal. This discussion will describe the nature of the problem or
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suspected problem, regulatory agency cleanup requirements, status of testing or cleanup plans
and any other pertinent information, including the impact on market value, if any.
Appraisals of all improved properties to be acquired will reflect market adjustments for the
presence of significant hazardous materials. Evaluation of improved comparable sales data will,
at a minimum, include verification of the following:
• Was an inspection of the buildings for hazardous waste and/or hazardous materials
made as a condition of sale? If yes, what were the results of the inspection?
• Did the transaction price or terms reflect the results and/or the cost of correction or
other hazardous waste/hazardous material considerations?
• Was there an indemnification agreement provided by the owner affected the property's
sale price by protecting the Commission from liability, risk or exposure associated with a
known or possible hazardous waste/hazardous material condition?
Valuation will consider the impact of hazardous material on the property. The market may
react to the presence of hazardous materials in an improvement on the subject by adjusting the
price/terms of the Purchase and Sale Agreement. Dollar adjustments, if any, may be more, less
or equal to the cost of the remedial action to remove, restore or otherwise mitigate the
problem.
The effect of hazardous materials on value will vary depending on whether the existing
improvements are the highest and best use of the land. Cost of remedial action may change the
highest and best use. Further, any remodeling, renovation, repair or modernization which
requires disturbance of otherwise dormant hazardous materials in order to achieve or maintain
highest and best use must be analyzed. Economic life of improvements may be shortened as a
result.
The fact that the Commission will incur cleanup costs as part of the right of way clearance
process does not necessarily indicate that the market value of the property is affected. In
appraisals where the estimated demolition cost of an improvement is being deducted from the
market value of a property as if vacant and ready for development, the estimated demolition
cost should include the removal of any hazardous materials. Where hazardous materials are
present, the appraisal discussion will include a description of the materials, their location and
condition, any regulatory controls applicable, the effect on the property's current or future use,
present and/or future remediation actions and costs and the estimated impact on market
value.
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UTILITY RELOCATIONS CHAPTER 11
11.00.00.00 UTILITY RELOCATIONS
11.01.00.00 GENERAL PROVISIONS
11.01.01.00 Scope
This section prescribes the policies and standards governing the utility relocation and
reimbursement procedures and practices to be used by the Commission on federal, state, and
locally funded projects. The section is organized based on the usual sequence of events from
project planning to project completion. For projects on the State Highway System, strict
adherence to Chapter 13 of the Caltrans Right of Way Manual is mandatory. For federally
funded off-system highway projects, utility relocation procedures are contained in Chapter 14
of the Local Assistance Procedures Manual. All federally funded utility relocations must
conform to 23 CFR 645.
Utility relocation procedures in this chapter only apply when relocating public utility facilities
that serve the general public. Service facilities and private utility facilities can be handled
through acquisition or during construction. Storm drains and drainage channels are not
considered utilities as they are not fee based services. Drainage facilities are generally handled
through construction of a replacement facility.
11.01.02.00 Utility Coordinator Responsibilities
The Commission is responsible for the acquisition, relocation or removal of utility facilities that
are in physical conflict with a transportation project. This responsibility shall be delegated to
the Commission’s Right of Way Manager. A Utility Coordinator consultant may be selected
through the Commission’s procurement process. The designated Utility Coordinator will
implement the Commission’s policies, including the following:
• Establish files that document actions taken or recommended during the life of a project.
Any discussion, meeting, or review of importance that does not generate a document
for the file should be recorded in a diary or memorandum. A diary can become critical
for maintaining current project status or for documenting past actions and,
consequently, should be a part of each file. The Utility Coordinator should evaluate the
needs of each project and initiate a procedure for a utility file diary. The author should
date and sign or initial all diary entries and notations in the file.
• Prepare estimates for possible relocations on future projects.
• Act as the Commission’s primary point of contact with the owners for identifying and
verifying all utility facilities lying within the existing and proposed rights of way of
planned construction projects.
• Coordinate positive location requirements for all high risk utility facilities within the
project limits.
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• Coordinate preparation of and review necessary property right conveyances for owners.
• Obtain and analyze data to allocate cost between the owner and the Commission, for all
required utility adjustment work and to clearly document, support, and set forth the
basis of this finding in a Report of Investigation.
• Assist in preparing and/or reviewing High/Low risk policy exceptions (deviations), as
appropriate.
• Review utility consultant design agreements when required for utility relocation.
• Prepare and issue Report of Investigation, Notices to Owner and Utility Agreements in
accordance with delegated authorities.
• Coordinate the utility information needed for the preparation of the Right of Way
Certification
• Verify owner’s relocation invoices and process for payment when acceptable.
• Coordinate invoicing and refunding funds relating to utility costs pursuant to utility
agreement provisions.
11.01.03.00 Definitions
11.01.03.01 Betterment. The upgrading (e.g., increase in capacity) of a Utility that is not
attributable to construction of a Project and is made solely for the benefit of and
at the election of Owner (not including a technological improvement which is
able to achieve such upgrade at costs equal to or less than the costs of a “like-
for-like” replacement or Relocation). The use of new materials or compliance
with Owner’s Relocation Standards in the performance of Relocation is not
considered a Betterment.
11.01.03.02 California Public Utility Commission (CPUC or PUC). The California Public Utilities
Commission (CPUC or PUC) is a regulatory agency that regulates privately owned
public utilities in the state of California, including electric owner,
telecommunications, natural gas and water companies. Some entities, like oil
companies that are privately owned, are not a public utility under the PUC’s
purview. Proper construction for utility companies regulated by the CPUC is
controlled by PUC issued General Orders.
11.01.03.03 Depreciation Value. The amount of credit to a Project required for the accrued
depreciation of a Utility based upon the ratio between the period of actual
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length of service and total life expectancy applied to the original cost. For the
purposes of Depreciation Value, “Utility” shall not be construed to include a
segment of Owner’s service, distribution and/or transmission lines.
11.01.03.04 Exempt Facilities. Facilities exempt from the requirements of this policy include
the following:
• Natural gas service lines of two (2) inches or less nominal pipe diameter and
with normal operating pressures of 60 p.s.i.g. or less
• Underground electrical service conductors with a potential to ground of 300
volts or less
• Any electrical facility with a potential to ground of 50 volts or less
• Service or private facilities
• Drainage facilities
11.01.03.05 Facility. Facility is synonymous with utility facility. A facility is any pole, pole line,
pipe, pipeline, conduit, cable, aqueduct or other structure or appurtenance used
for public or privately owned utility services or used by any mutual organization
supplying water or telephone service to its members.
11.01.03.06 FHWA Specific Authorization. The authorization, received from FHWA or
provided by the State on behalf of FHWA, to proceed with a specific utility
facility rearrangement for FHWA funded relocations. This authorization also
approves the relocation plans, estimate of cost and claim of liability.
11.01.03.07 High Risk Facilities. The Caltrans Project Development Procedures Manual
Appendix LL defines as high risk any facilities conducting the following materials,
whether encased or not:
• Petroleum products
• Oxygen
• Chlorine
• Toxic or flammable gases
• Natural gas in pipelines greater than six (6) inch nominal pipe diameter, or
pipelines with normal operating pressures greater than sixty (60) p.s.i.g.
• Underground electric supply lines, conductors or cables that have potential to
ground more than 300 volts, either directly buried or in duct or conduit, which
do not have concentric grounded or other effectively grounded metal shields or
sheaths
The above definition must be utilized for all projects on the State Highway
System. It is strongly recommended, but not required, to follow the above
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definition for FHWA funded off-system projects. For projects with other funding
sources, the above may be used as guidelines and/or adapted as appropriate.
11.01.03.08 Liability. A financial obligation, as used in this chapter to pay for relocation of
utility facilities affected by the Commission’s project.
11.01.03.09 Low Risk Facilities. The Caltrans Project Development Procedures Manual
Appendix LL defines as low risk any facilities conducting the following materials:
• Natural gas in pipelines six (6) inch or smaller (nominal pipe diameter) with
normal operating pressures sixty (60) p.s.i.g. or less.
• Underground electric supply lines, conductors or cables with a potential to
ground more than 300 volts, either directly buried or in duct or conduit, which
have concentric grounded or other effectively grounded metal shield or sheaths,
for which the utility owner furnished location information in conformance with
the requirements of Article 17.7 “Location Information” of General Order No.
128 of the California Public Utility Commission, or electrical underground
conductors with a potential to ground of 300 volts or less.
As noted in the definition of High Risk Facilities, the above definition is only
required to be used for projects on the State Highway System.
11.01.03.10 Master Contract. S&H Code Section 707.5 authorized the State to enter into
Freeway Master Contracts with utility owners. The Freeway Master Contracts
govern apportionment of the cost of rearranging facilities and outline other
terms of utility relocation for freeway projects. For projects on the State
Highway System, the Master Contracts should be adhered to by the Commission
and the utility owner. Master Contract terms should not be applied to any
projects other than projects on the State Highway System.
11.01.03.11 Owner. Owner is synonymous with utility owner. An owner is any private entity
or public body (including city, county, state, public corporation or public district)
that owns and operates a utility facility.
11.01.03.12 Positive Location. Positively determining the existence and location of a utility
facility to within 0.5 feet through the use of potholing, probing, electronic
detection, certified as-built plans, or combination thereof as deemed acceptable
by the Project Manager or assigned Engineer.
11.01.03.13 Private Utility. A private utility facility is one that provides a utility service for the
exclusive use of a privately owned business, farm operation, corporation, etc., or
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provides an exclusive service to improvements and occupants of an individually
owned property.
11.01.03.14 Public Utility. A public utility is defined as those utilities either publicly,
cooperatively or privately owned that provide a product or service, either
directly or indirectly, to the public for a fee.
11.01.03.15 p.s.i.g. Pounds per square inch gauge pressure.
11.01.03.16 Salvage Value. The amount received from the sale of Utility material that has
been removed or the amount at which the recovered material is charged to
Owner’s accounts if retained by Owner for use, in accordance with 23 CFR 645.
11.01.03.17 Service Facilities/Private Utility Facilities. The facility services installed and
maintained on private property with customer permission, including:
• Service disconnects
• Removal of meters and meter set assemblies
• Utility facility located on a military base , school grounds, manufacturing
complex, etc., owned and maintained by the property owner for their exclusive
use
• Facility interconnecting individually owned but dispersed operating sites
providing an exclusive and private service to the site owners
Separation of the private utility facility from the public utility facility occurs at
the point where the privately owned and maintained facility connects to the
public facility. Relocation of all private utility facilities shall be by the usual
appraisal/acquisition process rather than by the public utility relocation process.
11.01.03.18 Utility Coordinator. The terms Utility Coordinator and Utility Consultant are
synonymous when a consultant is obtained and authorized for such work. The
Utility Coordinator/Consultant is the Commission representative responsible for
coordinating the relocation and removal of facilities that are in physical conflict
of a Commission’s transportation project.
11.02.00.00 UTILITY RELOCATION POLICIES
11.02.01.00 Applicable Utilities Policy
The following is a selected list of policies that originate from law, state and local directives that
shall be uniformly applied in all applicable utility relocation situations.
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11.02.02.00 Utilities on Commission Property
All utilities within the Commission’s rights of way and/or project limits shall be relocated so as
to minimize traffic disruption and other hazards to transportation facility users. Facilities shall
be relocated as close to the edge of the right of way line as reasonably practicable. Facilities
shall be installed to minimize interference with right of way maintenance and operation, and to
prevent impairment of the stability of the rights of way or its appurtenances to the maximum
extent practicable.
11.02.03.00 Hazardous Waste Affected by Facility Relocations
Utility relocation work structured within the project limits is a necessary part of project
construction. Any hazardous waste encountered within the project limits as a result of the
Commission structured utility work is handled in the same manner as hazardous waste
encountered by any other part of the project construction. Project Engineering shall be
informed of all potential utility adjustments that may affect identified hazardous waste sites so
the work is identified as part of project remediation.
Hazardous waste encountered outside the project limits, such as on the grantor’s remaining
property, other private property, or on local streets and roads beyond the limits of the project,
is not the Commission’s remediation responsibility. Any extraordinary costs associated with
remediation or unusual work requirements due to hazardous waste encountered outside the
project right of way are considered part of the owner’s necessary relocation effort. The
Commission may pay its proportionate share of these costs as part of normal relocation
reimbursement in accordance with the usual liability determination process.
All exceptions to this policy shall be processed through the Commission’s Right of Way Manager
for approval.
11.02.04.00 Verification of Utility Facilities
Pursuant to Government Code Section 4215, the Commission shall make every reasonable
effort to locate all existing utility facilities within the right of way of a proposed construction
project and to identify the facilities on construction contract plans.
Government Code Section 4216 states that the Commission is required to take reasonable and
prudent steps to ascertain the exact location of underground facilities. If the Commission’s
contractor has done so, but still damages a facility not shown on the plans, the Commission
may be responsible for damages to the facility and all resulting protection requirements and/or
project delays.
The facility owner is responsible for Underground Service Alert (USA)/Digalert notification prior
to any construction.
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11.02.05.00 Safety
The Commission is responsible to provide a safe environment for its employees and
contractors, as well as the traveling public. An important element of the safe environment is
providing a clear and safe right of way through the proper placement, protection, relocation, or
removal of utility facilities that may pose a safety risk to the transportation worker or user
when the utility is excavated, cut, or penetrated. Toward this end, the Commission shall
establish and enforce mandatory standards and procedures for the placement and protection
of underground utility facilities within the project rights of way and for the safety of
transportation workers involved in maintenance or construction operations in proximity of
underground utility facilities.
11.02.06.00 Advancing Cost of Relocation to Owner
Funds shall be advanced only after it has been conclusively shown that the owner is financially
unable to bear the cost of relocation and is unable to secure other financing for the work.
Funds may also be advanced if there is dispute over liability and the resolution of the dispute
will jeopardize the timing of the project. When an advancement is made, interest shall be
charged in accordance with the terms of an agreement. Funds shall not be advanced to cover
any betterment to the facility requested by the owner. All advances requires approval of the
Right of Way Manager.
11.02.07.00 Communication with Owner
The Utility Coordinator shall communicate all coordination of utility work, including
modification of the scope of work, or the need to have utility work performed on premium or
overtime, to the owner in writing. An amended Notice to Owner and Utility Agreement shall
cover significant changes.
11.02.08.00 Policy on High and Low Risk Underground Facilities
All projects on the State Highway System must conform to the Policy on High and Low Risk
Underground Facilities within Highway Rights of Way contained in Appendix LL of the Project
Development Procedures Manual. Conformance with that policy is strongly recommended, but
not required, for FHWA funded off-system projects. For projects with other funding sources,
the policy may be used as guidelines and/or adapted as appropriate.
11.03.00.00 PLANNING PHASE
11.03.01.00 Initial Activities
Duties relating to this phase of the project are normally performed prior to Environmental
Clearance and Project Report approval. Activities generally consist of the following:
• Corridor/route preservation
• Route estimating
• Right of way data sheet preparation
• Draft Project Report review
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• Draft Environmental Document review
11.03.02.00 Utility Relocation Work in Prior to Environmental Approval
Federal and State law dictates that environmental clearance must be received prior to
commencement of any project. This does not preclude owner performance work critical for
inclusion in the environmental document. This work is generally referred to as preliminary
engineering and includes such items as follows:
• Updating data sheet, as necessary
• Coordinating identification and verification of existing utilities
• Assisting in identification of utility facilities in physical conflict
• Assisting in identification of all utility facilities and coordinate the positive location of
identified facilities, as required
• If FHWA funded, preparing a Federal Authorization to Proceed (E-76) covering all utility
facilities when identified
• Preparing the Notice to Owner, Utility Agreement, and Report of Investigation for
owner-conducted positive location
• Preparing the Task Order and Notice to Owner for the Commission’s positive location
• Requesting and reviewing owner’s relocation plans, claim of liability and estimate of
cost
• Preparing the Report of Investigation, Notice to Owner, and Utility Agreement for
preliminary engineering
• Preparation of plans in support of the Environmental Document
11.03.03.00 Early Project Coordination
Utility owners require lead-time to develop budgets and plan work required for ordered
relocations. Additional lead time may be required to order long lead time materials, and
schedule work during non-peak demand periods when utility facilities may be removed from
service and to comply with PUC General Orders.
It is critical that the Utility Coordinator establish early and continuing coordination with all
owners being affected by proposed projects. Many local agencies hold periodic coordination
meetings with owners within their jurisdictions to discuss planned public works projects in
general. The Utility Coordinator is encouraged to discuss the Commission’s projects at these
meetings or to conduct their own liaison meetings.
11.03.04.00 Corridor/ Route Preservation
On occasion and in an area of development, owners may plan extensions or additions to their
utility facilities within the Commission’s right of way and/or project area. These new utility
facility installations may be affected by planned construction or development. The Utility
Coordinator is responsible for notifying the owner of all planned improvement projects within
the Commission’s project limits to enable the owner to make an informed decision about
placement of utility facilities within the project right of way.
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If an owner decides to go ahead with new facility construction, the additional cost incurred to
install their facilities clear of the Commission’s future construction shall be paid by the owner.
Although there is no requirement for the owner to install their facilities to clear Commission’s
future construction, it will eliminate the possible relocation, at owner’s expense, of these new
facilities in the near future, providing less disruption to their services, less cost to their
ratepayers and more efficient project delivery for the Commission.
If the owner decides to go ahead with the new facility construction and the installation is in a
location where the owner has a right that is superior to the Commission’s, the additional cost
incurred to install their facilities clear of the Commission’s future construction shall be paid by
the Commission. A special utility agreement may be entered into with the owner to cover the
extra cost of the installation.
11.03.05.00 Environmental Document Review
The draft environmental document must be reviewed to ensure that utility relocation conflicts
are addressed, for example, where an underground facility will be relocated across an
environmentally sensitive area such as a wetland.
Potential hazardous waste encountered during construction projects are usually addressed in
the environmental document. If hazardous waste is a potential problem on the project, the
Utility Coordinator must ensure that the requirements of Chapter 10 of the Commission’s Right
of Way Manual are addressed.
It is also critical to ensure the environmental document does not propose mitigation
commitments that may be in conflict with existing laws or current Commission policies.
Conflicting commitments must have the Commission’s prior approval.
If utility facility relocations are addressed in the environmental document, then the wording
below can be used. However, the utility relocation commitments should not be placed in the
Mitigation Section of the environmental document.
“All public utility facilities affected by the proposed transportation project will be relocated
and/or accommodated in accordance with state law and regulations and the Commission’s
policies concerning utilities within transportation rights of way.”
11.03.06.00 Design Phase
Activities generally performed in the design phase of a project (as well as those above) include
the following:
• Coordinating planned placement of utility facilities on structures
• Identifying and submitting utility-related “Special Provisions” to Design Engineer
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• Coordinating with the Engineer of Record to review exception requests to Commission
policies
• Preparing the Report of Investigation, Notice to Owner and Utility Agreement for
relocations
11.03.07.00 Commencement of Design
The approved Project Report (and Environmental Clearance) is the final document that
authorizes a transportation project to proceed to design. Upon receiving this report, the Utility
Coordinator and Engineer of Record commence the detailed utility verification and relocation
design process.
To commence, the Utility Coordinator shall arrange a meeting with all affected owners and the
Engineer of Record to perform the following:
• Discuss the general project
• Identify utility conflicts
• Discuss alternative solutions to transportation/utility conflicts
• Identify need for owner-provided utility consultants
• Determine a schedule for future coordination meetings
The Utility Coordinator is responsible to take a proactive role to help ensure that all projects are
proceeding in a timely manner and that verifications are requested for all projects.
11.03.08.00 Utility Estimates
Right of way estimating usually includes the project utility relocation estimate. These estimates
are used for the Project Study Report (PSR). The PSR is an engineering report used to document
agreement on scope, schedule, and estimated cost of the project so it can be included in a
future programming document. Since accurate estimates are crucial to both scheduling and
ultimate delivery of any given project, utility estimates must be as accurate as possible.
Accuracy of any estimate, however, is subject to the quality of plans received and the lead time
given. If the plans or lead time are inadequate, the Utility Coordinator shall inform the
Commission of such when submitting the estimate. Significant cost contingencies should be
specifically identified in the estimate, for example, a potential conflict with a major facility
where the project’s affect cannot yet be fully determined. Estimates should always be based on
the most probable “worst case” and “highest cost” assumptions.
11.03.09.00 Special Environmental Reviews for 50KV Electrical Facilities
Major electric facilities involving power lines and substations operating in excess of 50KV may
require special permits and environmental review per PUC General Order 131-D. Potential
relocations of this type require early coordination with the PUC regulated electric utility owner
to determine General Order applicability. If an environmental review is necessary, then
describing the utility relocation within the environmental document may substantially reduce
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lead-time requirements for the utility relocation. Questions concerning applicability of this
Order to a particular relocation must be resolved between the owner and the PUC.
11.03.10.00 Utility Facility Avoidance
The Engineer of Record should design transportation projects to avoid utility facilities whenever
possible and be cost effective. A design-to-miss approach will assist in faster project delivery,
particularly where affected utility facilities require complex relocations or special ordered
material. As Engineer of Records strive to simplify their projects, one of the most effective ways
to prevent project failure is to design around existing utilities at every possible opportunity, just
as Design Engineers avoid environmentally sensitive areas, e.g., biological, archeological or
water quality sites.
11.03.11.00 Design of Utility Facility Relocations
The facility owner shall be responsible for design of all utility facility relocations. The only
exception is when the owner has requested the Commission to perform the design and
construction to be done as part of the transportation project. The design and construction of
the relocation shall be included in a Utility Agreement, and the Utility Coordinator shall remain
the primary point of contact for liability and coordination of work activities between the owner
and the Commission. Liability is determined using the same methodology as if the owner were
conducting the relocation.
11.03.12.00 Utility Consultant Design Requirements
Relocation design is normally done by the owner’s employees. If the owner is unable to
perform their own design or elects to have design work done by a consultant, and the design
costs are to be reimbursed by the Commission, the Utility Coordinator must discuss with the
owner the Commission’s need to review the owner’s consultant costs. If the Commission’s
Engineer of Record disapproves the owner’s consultant cost, the Commission then reserves the
right to have the work done by others.
11.03.13.00 Utility Verifications
The Engineer of Record is responsible for determining the identification and location of all
utility facilities that lie within the right of way boundaries of the planned construction project
by performing the following:
• A joint field review of the project area by the Engineer of Record and the Utility
Coordinator
• Reviewing Departmental as-built permit records and geographic information systems
• Asking the Utility Coordinator to verify facilities from each owner that may have
facilities within the project area
• Requesting field surveys to verify utility facilities
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The need for this identification and verification is to identify all potential utility/project conflicts
so they may be cleared before project construction commences, either through avoidance or
relocation and to meet the requirements of California Government Code Section 4215.
11.03.14.00 Geometric Base Maps
The Engineer of Record develops geometric base maps that are used as the base for identifying
all known existing facilities within the project limits. Identification is a necessity even if
proposed construction is entirely within existing rights of way. The Engineer of Record will
obtain the initial utility information from the following sources and delineate it on the base
maps:
• As-built drawings for prior construction projects with state and local agencies
• Ground and aerial surveys
• Permit files
• Field review of the project
• Right of way utility files
The base maps will also show existing and proposed right of way lines, as well as existing and
proposed access control lines, where applicable.
11.03.15.00 Utility Verification Request to Owner
The Utility Coordinator sends the base maps to each owner with known, existing, or potentially
existing facilities within the project area. Normally, the owner is allowed thirty (30) days to
respond. The Utility Coordinator is responsible for follow-up to ensure timely completion of
verification. (See also CPUC General Order 128, Rule 17.7 for legal requirements for regulated
owners to provide facility location information.)
11.03.16.00 Owner’s Verification of Facilities
Upon receipt of the owner’s verification of facilities lying within the project area, the Utility
Coordinator will do the following:
• Transmit owner’s verification facility locations to the Engineer of Record in identifying
utility facilities in conflict with the Commission’s accommodation policy.
• Assist the Engineer of Record in identifying high and low risk facilities, as required
If no physical conflicts are identified, the Utility Coordinator notifies each owner involved in the
verification process of the finding.
11.03.17.00 Positive Location of Underground Facilities
To accurately determine the type and location of all potentially affected utility facilities, it is
frequently in the Commission’s and owner’s mutual interest to provide positive location of
underground facilities. The process of obtaining this information may require that an
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excavation be made to expose the facility and allow the precise location to be surveyed. The
excavation to expose the facility is frequently referred to as “potholing.”
The Engineer of Record is responsible to determine when positive location is required, usually
whenever facilities are known to exist within the project construction area but cannot be
precisely located, particularly as to depth. Without precise location information, physical
conflicts within the project cannot be determined nor safe construction assured.
The Utility Coordinator shall provide reasonable notice to the owner to accomplish positive
location of underground utility facilities and is responsible for determining liability for costs in
accordance with usual liability requirements. The Utility Coordinator shall provide the
documentation of the owner’s rights or prepare a Notice to owner to request the owner to
provide it.
11.03.18.00 Utility Coordinator Responsibilities for Positive Location
The Utility Coordinator is responsible to coordinate all positive location requirements specified
in the Notice to Owner and in the positive location request to the contractor. Duties performed
generally consist of the following:
• Prepare positive location request and Notice to Owner based on maps prepared by the
Engineer of Record.
• Follow up to ensure the positive location work will be done by the date specified in the
Notice to Owner.
• Confirm necessary inspections.
• Coordinate with surveys to obtain required horizontal and vertical location data for
utility facilities.
• Ensure that survey information is transmitted to the Engineer of Record for inclusion in
the contract plans.
When positive location is ordered for an owner, the Utility Coordinator sends either a Notice to
Owner or a notification letter advising the owner of the scheduled positive location of their
facilities so they may have an inspector present.
Although the responsibility for positive location may be that of the owner, the Commission may
determine that the benefit of paying for and performing positive location in an expedited
manner may outweigh the expense of the positive location. The Right of Way Manager and
Engineer of Record should be consulted to determine whether or not the Commission should
perform positive relocation utilizing its own funds and resources.
11.03.19.00 Positive Location Agreements on State Highway and Freeway Projects (On-
System)
The State has created and executed a Positive Location Agreement (PLA) with numerous utility
owners throughout the state for projects on the State Highway System. The Commission, in
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partnership with the State, may be able to utilize such agreements for the positive location
effort. The Utility Coordinator should determine if the State PLA’s apply to the Commission’s
project and, if so, what the liability provisions are for payment of positive relocation.
11.03.20.00 Positive Location Requirements for High Risk Facilities
All underground high-risk facilities lying within the construction area of a transportation project
shall be positively located.
The Engineer of Record will make a written request to the Utility Coordinator to obtain positive
location information for all utility owned high risk facilities that may be in physical conflict with
planned construction or that may be exposed to risk of damage during construction. The
request must identify the location where the high-risk facilities are to be positively located.
11.03.21.00 Utility Conflicts Identified
The Engineer of Record is responsible to review all existing utility locations for conflicts,
determine which facilities need to be relocated, and make a request to the Utility Coordinator
to obtain affected owner’s relocation plans. The Engineer of Record will provide the Utility
Coordinator with conflict maps for the owner to use to prepare relocation plans. The Utility
Coordinator sends conflict maps to the owner and requests relocation plans, their claim of
liability, and estimate of cost.
Some conflicts may not be immediately evident on the plans, such as stage construction
requirements, detours, pile-driving operations, signal and lighting facilities, longitudinal
encroachments, and encasement exception requirements. The Utility Coordinator shall review
all plans with the Engineer of Record for possible conflicts with all facilities within the project.
If after reviewing all utility information, including positive location data, it is determined there
are no conflicts with the Commission’s proposed transportation project, the Utility Coordinator
must notify the owner of such.
11.03.22.00 Conflict Maps
Utility conflict maps are essentially the Commission’s preliminary layout sheet for the utility
relocation schedule and estimate. They should show any construction feature that may affect
the owner’s facilities including, but not limited to, the following:
• Utility location
• Right of way lines
• Cross sections
• Profile
• Retaining and sound walls
• Drainage
• Traffic signals and appurtenances
• Stage construction
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• Bridge structure
• Replacement easement areas
11.03.23.00 Request for Relocation Plans, Claim of Liability and Estimate of Cost
Prior to issuing the Notice to Owner and Utility Agreement, the Utility Coordinator must obtain
the owner’s claim of liability, estimate of cost, and relocation plan. An exception can be made
for expedited positive location.
The letter to the owner normally allows the owner sixty (60) to one-hundred and twenty (120)
days to respond. Since this is a crucial element in the utility relocation process, the Utility
Coordinator must actively follow up with the owner to ensure they maintain a schedule that
will allow successful project delivery.
11.03.24.00 Receipt of Relocation Plans, Claim of Liability, and Estimate of Cost
Upon receiving the owner’s relocation plans, the Utility Coordinator routes the plans to the
Engineer of Record for review and approval and comparison with other owner’s plans to assure
compatibility (e.g. no conflicts with other relocation plans).
The Utility Coordinator has basic responsibility for reviewing all relocation plans to determine
that they provide a cost effective functional restoration of the utility facility. Betterments
should be identified and all elements of the planned relocation must be necessary and
appropriate.
Where any portion of the utility work claimed by the owner is to be at the Commission’s
expense, the Utility Coordinator must review the owner’s claim letter that sets forth the basis
for the Commission’s liability and the estimated cost of relocation.
11.03.25.00 Special Provisions
All utility facilities to be relocated, abandoned, or protected in place during construction,
whether done by the Commission’s contractor or owner, are to be addressed in the
construction contract’s “Special Provisions.” The Utility Coordinator is responsible to provide
the Engineer of Record with the information necessary to prepare these clauses for inclusion in
the “Special Provisions”. Failure to do so may result in claims by the Commission’s contractor
for right of way delays.
11.04.00.00 ACQUISITION
11.04.01.00 Acquisition of a Utility Facility
The distinction between public utility facilities and service facilities/private utility facilities is
frequently confusing. The distinction between the two may be based on whether severance of
the particular improvement directly affects utility service to one customer or several
customers.
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Public utility facilities affected by transportation projects normally have a functional
replacement constructed and are seldom acquired.
An improvement that is determined to be private can be appraised and acquired in accordance
with Chapter 6, if known at the time, otherwise it is relocated during construction.
11.04.02.00 Acquisition from the Utility Owner
When the Commission’s transportation projects affect properties owned by utilities, in
easement or fee, the Commission must acquire the necessary rights from the utility in
accordance with Chapter 6. The Utility Coordinator should consult with Right of Way Staff to
reach a full understanding about what the property is and how it may be used, now and in the
future. Generally, the acquisition agent will handle the acquisition of the property, and the
utility coordinator will be responsible for overseeing relocation of utility facilities to connect to
the replacement site/facilities. Scenarios include:
Vacant Site owned in Fee. The owner may be holding the site for future use in conjunction with
an existing facility, such as for a substation expansion. These properties should be purchased in
fee unless obtaining a lesser right proves best for the Commission. There might be
opportunities to exchange property rights. Any future liability or unfunded obligations need to
be approved by the Commission.
Vacant Corridor owned in Fee. Although treatment is similar to a vacant site, the possibility of
easement acquisition on the owner’s behalf or Joint Use Agreement (JUA)/Consent to Common
Use Agreement (CCUA) should be explored.
Utility Facility Improved Site Owned in Fee. Generally, most fee-owned property is for
substations or pumping plants. Replacement of the site by the utility is usually necessary.
Relocation or rearrangement of utility facilities shall be handled by a Utility Agreement. This
type of site may also fall into the category of a Functional Replacement. Determination should
be made between the Right of Way Manager and the Engineer of Record.
Utility Facility Improved Corridor/Utility Occupied Easement. Occupied easements are usually
for transmission or distribution of the owner’s product. Replacement right of way is required;
however, the possibility of replacing fee with easement or JUA/CCUA should be explored.
Access to the replacement corridor must be considered. Usually the owner’s existing easement
is quitclaimed to the Commission in exchange for the new location by executing a JUA/CCUA as
a part of the utility relocation agreement.
Private Utility /Service Facilities. Acquire via appraisal/acquisition procedures as noted in
Chapter 6, if known at the time, otherwise it is relocated during construction.
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Utility Non-Occupied Easement. Right of Way Staff is responsible for clearance of vacant
easements.
Franchise/Permit Rights. Except as noted, the Commission is not obligated to provide a
replacement right of way for utility facilities installed under a franchise or permit.
Most utility facilities within local streets and roads are located under a franchise agreement. As
a result, there are limited utility relocation costs to be reimbursed. The primary concern
(especially when there is federal funding) lies with ensuring that required utility adjustments
are properly planned and coordinated with construction. This requires timely issuance of a
Notice that clearly states how the utilities will be adjusted to allow conflict-free construction.
11.04.03.00 Acquisition for the Utility Owner (Replacement Right of Way)
If the utility owner has superior occupancy rights, the Commission can acquire the needed
replacement right of way in accordance with Chapter 6. The owner selects the necessary and
functional replacement right of way location. Either the Commission or the owner may
accomplish the acquisition. If the replacement location crosses a parcel where the Commission
is to make a highway acquisition, the preferred acquisition method is to include it in the
Commission’s acquisition program. The Commission may acquire the replacement right of way
by one of the following methods (in order of preference):
• Acquire in the name of the owner, preferably on the owner’s own deed form.
• Acquire in the name of the Commission by deed and subsequently convey to the owner
by deed.
• Allow the utility to use Commission land if not in conflict with the project. Care must be
exercised in making any commitments regarding utility use of Commission land in a
project area by using a Right of Entry or License Agreement.
If the utility facility being displaced is not in a superior right status, the Commission may acquire
the replacement utility easement as a convenience to and at the expense of the owner, but
cannot condemn for it without consent as described below. Where the facility was in an
encroachment permit status only (non-prior rights), replacement utility easements must never
be acquired at the Commission’s expense as this would constitute a gift of public funds.
When a utility acquires their own replacement right of way, the requirements of Chapter 6 do
not apply.
11.04.04.00 Consent to Condemnation for Exchange Purposes from the Owner
Condemnation may be necessary if the Commission is unable to acquire the replacement right
of way through normal negotiations. A “Consent of Owner to Condemnation for Exchange
Purposes” must be obtained from the owner pursuant to Code of Civil Procedure Section
1240.320 to support a “Resolution of Necessity” from the Commission.
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11.05.00.00 LIABILITY DETERMINATION
11.05.01.00 Process
Liability determination is the process of analyzing the occupancy rights of the owner of utility
facilities versus the Commission’s rights. Who has the prior or superior right in the area of the
affected facility is the basis for the determining responsibility for payment of relocation costs.
The burden of establishing prior rights rests with the owner. The Utility Coordinator is
responsible for accumulating the data, providing a complete and accurate report, and for
confirming and approving the liability. Until the Right of Way Manager approves the liability,
the Utility Coordinator is not to provide any determination to the owner.
The owner is responsible for preparing, documenting and submitting a claim for their declared
right of occupancy. If the Utility Coordinator investigation confirms the owner has rights prior
and superior to those of the Commission, the owner is paid for all or a portion of the relocation
work.
11.05.02.00 Liability Calculation
Liability determination is generally based on occupancy rights. Liability for the relocation cost is
determined on the basis of who has the subservient right in the area of the existing facility that
is affected. If all of the affected facility is within an area of a single type of occupancy right, the
party with the lesser right is liable for the entire cost, unless it is a State Highway System
freeway project subject to a State Master Contract. If the facility area consists of more than one
type of occupancy right, such as utility easement and a permit, then a proration between owner
and the Commission of the total cost must be calculated using one of the three methods
described under “Methods of Calculating Proration of Costs” below.
It is important to remember that only the affected portion of the existing utility facility that lies
within the Commission-owned or controlled project limits is counted or measured, as
applicable, for use in the proration formula. The total to be prorated, however, includes the
cost of relocated facilities both within and outside the right of way. This total cost must not
include any betterment or other non-reimbursable items of cost.
Property rights are the primary factors in determining who has the superior right of occupancy
and will be based on one of the following:
• Fee Ownership
• Expressed Easement (typically recorded)
• Implied Easement (easement by necessity and unrecorded)
• Prescriptive Easement (unrecorded)
• Joint Use Agreement / Consent to Common Use Agreement
• Master Contracts
• Lease
• License
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• Franchise
• Encroachment Permit
• Trespass
Typically, the first six (6) bullets above establish prior or superior rights. The Commission may
be liable for these relocation costs unless the documents involved contain clauses that reserve
the owner’s right to order one or more relocations at the project owner’s expense.
Occupancy under bullets seven (7) through ten (10) are usually considered inferior rights and
require that relocations be at the owner’s expense, unless the documents contain clauses
providing otherwise. For further clarification of term and policy, please refer to “Methods of
Calculating Proration of Costs” below.
11.05.03.00 Property Rights
The owner may submit one or more superior or prior right claims for a facility. Each prior right
claim the owner submits must be fully documented and supported. The documentation must
be referenced in, and attached to, the Report of Investigation. The types of property rights in
the following sections generally indicate how each superior right should be documented and
the extent to which the Utility Coordinator should investigate the validity of the owner’s claim.
When reviewing a superior rights claim on a State Highway Systemfreeway project, the Utility
Coordinator must determine if there is a Master Contract with the owner that modifies or
supersedes normal occupancy rights or statutes and establish the basis of the owner’s claim.
11.05.03.01 Fee Ownership. The Commission is liable for relocation costs any time the
facility is on property where the owner has fee title. The Utility Coordinator shall
review title reports and right of way maps to verify ownership. All fee-owned
property must be acquired through the Right of Way Manager. Relocation or
rearrangement of utility facilities shall be handled by the Utility Coordinator via
Utility Agreement in coordination with Right of Way Manager. The Utility
Coordinator must ensure the Utility Agreement covering relocation does not
include a double payment for property rights.
11.05.03.02 Expressed Easement. An expressed easement is recorded. Therefore the
easement document can be obtained and reviewed to determine whether the
owner has a valid superior right.
In most cases, when the facility is located within a recorded easement, the
Commission is liable for relocation costs. The Utility Coordinator, however, must
verify that the easement is valid and does hold a prior or superior right to the
Commission’s rights. The Utility Coordinator must also verify the location of the
easement.
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Any owner’s relocation obligation or other limitation clauses within the
easement document may be passed to the Commission upon acquisition of the
underlying fee and must be investigated to determine if they are in conflict with
the owner’s claim. The Commission’s liability for relocation costs under a valid
easement extends to subsequent additions to those facilities originally installed
as long as the additions are consistent with the terms of the easement.
11.05.03.03 Implied Secondary Easement. All city-owned facilities located in city streets and
county-owned facilities located in county roads that were installed in the street
or road within the city or county jurisdictional limits prior to becoming part of
the Commission’s transportation project are considered to be installed in the
owner’s implied easement reservation. All facilities as described above are
relocated at Commission expense except when crossing the Commission’s
railroad right of way. The Utility Coordinator should check permits, “as-built”
drawings, and the owner’s records to confirm the facilities were installed prior to
the date of the project.
After the project, the local agency may maintain or even improve their facilities
as long as the improved facility remains in substantially the same location. The
local agency may not, however, expand upon their existing system by installing
new parallel facilities except under the usual licensing process.
Facilities not under the city’s or county’s direct ownership and control, such as
regional sanitation or fire districts, are not subject to the implied/secondary
easement liability rule.
11.05.03.04 Joint Use Agreement (JUA) and Consent to Common Use Agreements (CCUA). In
most cases, the Commission will bear relocation costs for facilities installed
within a JUA/CCUA area if the facility is located within the State Highway System.
The Utility Coordinator must determine that the JUA/CCUA existing facility is, in
fact, in the area of the JUA/CCUA by comparing the facility location with the
JUA/CCUA description. The document must also be reviewed for any conditions
that may change or limit the facility owner’s rights such as the following:
• A JUA/CCUA based on prescriptive rights where the existing facility is different
than the facility covered in the JUA/CCUA, e.g., rights for an underground four
(4) inch gas line but the facility to be relocated is a sixteen (16) inch gas line.
• A JUA/CCUA that has an expiration date for the owner’s rights.
An owner has the legal right to expand their facilities to the extent allowed by
the terms and conditions of the easement deed. This right extends to a
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JUA/CCUA granted in recognition of existing easement deeds, but does not
extend to prescriptive right claims.
11.05.03.05 Prescriptive Rights. Relocation costs for facilities installed under a right of
occupancy established by a prescriptive right may become the Commission’s
liability if the occupancy condition meets the following statutory requirements:
• Established by the open, continuous, hostile and notorious adverse use of
another’s property
• Installed on private property with the knowledge or acquiescence of the
property owner, or was so open, unequivocal and obvious that the owner must
have known about it, but without an expressed grant of right, permit, lease, or
other license
• Continuously maintained in the same location for the prescriptive period of at
least five years
Prescriptive rights cannot be established on publicly owned property.
The extent of the prescriptive easement is measured by the owner’s use during
the preceding five (5) years. Accordingly, the precise extent of the prescriptive
easement, for example, a single line of poles with one cross-arm and eight
telephone wires, should be set out in any instrument in which the Commission
recognizes the superiority of such rights over those of the Commission.
The owner has the burden of proof in establishing a valid claim to a prescriptive
right. The factual situation where prescriptive rights are claimed shall be
carefully investigated. The possibility of entry and occupancy under lease,
permit, license or other permissive use should be explored. The owner must
submit a claim letter containing the above-mentioned statutory requirements.
11.05.03.06 Lease. A lease is a right to possess for a specific time period. The term or
duration of possession is typically stated in the lease. The Utility Coordinator
should investigate the validity of the lease to confirm the lease hasn’t expired,
review the termination clauses, the parties to the lease, the utility facilities
described within the lease, and the location. Any utility owner’s relocation
obligations or other limitation clauses contained in the lease may be passed to
the Commission upon acquisition of the underlying fee and must be investigated
to determine if they conflict with the utility owner’s claim. Determination of
whether the owner or the Commission is liable for relocation costs will depend
on the types of termination and relocation clauses contained in the lease.
11.05.03.07 License. A license is permission from a property owner for another party to use
land. A license is not recorded and is revocable upon notice. A license differs
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from a lease in that it is only between two parties and cannot be transferred
unless it is specifically written into the license. When an owner has a license and
the Commission acquires the property on which the facility exists, the license is
no longer valid and the Commission can require the owner to relocate at owner’s
expense.
The Utility Coordinator must read the license to determine if the above
requirements such as successors or assigns are mentioned in the license. Also
notification and revocation requirements, if any, should be reviewed.
When evaluating a license, the Utility Coordinator must take into account the
level of title the Commission has already acquired at the time of issuance of the
Notice to Owner because only the fee owner of property can enforce conditions
reserved in the license.
11.05.03.08 Franchise. Utility facilities that are placed in public rights of way pursuant to a
franchise privilege from a city or county, or pursuant to state law do not convey
any property rights and utility owners are to relocate at their own expense
whenever requested to do so for a legitimate or proper governmental purpose
by state or local authorities. Requirements of each utility relocation, with respect
to provisions of the specific franchise involved, must be carefully reviewed. The
Utility Coordinator may need to obtain a letter from the City or County
confirming the termination rights if a utility is claiming that a franchise right is a
superior right.
11.05.03.09 Encroachment Permit. An Encroachment Permit is a form of license that
provides permission to the owner to install a facility, but does not convey any
property rights. The permit also imposes certain restrictions on the owner. The
permit contains a relocation clause that states the owner must relocate their
facilities upon request at the owner’s own expense.
11.05.03.10 Joint-Pole Agreement. The California Public Utilities Commission has authorized
the joint sharing of poles by different utility owners, through a Joint Pole
Agreement (JPA) as a means of providing more cost effective service and to
reduce “utility pole blight.” The JPA rarely, if ever, will convey property rights to
the joint pole user. The lead pole owner’s (owner of the pole) rights must be
reviewed to determine the joint pole user’s rights. As with any claim of property
right, the owner making such a claim must submit all necessary documents to
support that claim.
On joint pole facilities, when multiple owners are found sharing the pole, each
joint pole user must submit all necessary documents to support their claim
whether or not the JPA covers such use. The joint pole user may have a valid cost
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liability claim even though they occupy the pole under a lease, license or permit
with the lead pole owner.
If the utility owner on a State Highway System project has a Freeway Master
Contract, liability for the JPA will be determined pursuant to the Freeway Master
Contract.
11.05.04.00 Subsequent Relocations
For projects on the State Highway System, Streets and Highway Code Section 704 provides that
if an owner is required to relocate any of their facilities more than once within a period of ten
years, the agency shall pay the cost of the second relocation and any subsequent relocation
within the ten-year period. For projects that are not on the highway system, the Commission
may consider paying the cost of a second relocation in ten years, but it requires the approval of
the Right of Way Manager and any funding sources contributing to the cost of utility
relocations.
11.05.05.00 Methods of Calculating Proration of Costs
If it is determined that more than one type of liability occurs on a project (for example, a utility
facility is partially in easement and partially in franchise), the costs should be pro-rated
between the Commission and the owner based on the following methodologies:
11.05.05.01 Pole Count. Pole count is a normal method used for aerial facilities. The
calculation is based exclusively on the number affected poles located within the
project limits where the owner has the superior right, divided by the total
number of affected poles within the project limits. This calculation produces the
Commission’s share of the total relocation cost. Equal weight is normally given to
each affected pole within the project limits regardless of ancillary equipment or
attachments such as guys, transformers, and switches. The affected poles must
be otherwise similar, as wood pole relocation costs are greatly different than
special designed steel poles or other supporting structures. If affected poles are
of a mixed type, separate costing may be necessary for the dissimilar poles. See
“Dollar Weighted” method below.
11.05.05.02 Facility Length Measurement. Linear length of the affected facilities is normally
used for underground facilities such as gas, sewer and water, or for cables either
directly buried or within conduits and the facilities on the surface such as ditches
or conduits.
The calculation to prorate liability is similar to the pole count method above and
is based on the owner’s superior right length of the affected facility lying within
the project limits divided by the total affected length within the project limits.
The measured lengths must be of the same or similar size and type of facility,
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irrespective of ancillary equipment or features such as valves, manholes,
switches and transformers.
11.05.05.03 Dollar Weighted. This method is used where mixed facilities are to be prorated.
This approach requires considerably more effort and documentation as it is
necessary to establish and support an installed replacement cost new for the
existing facilities. The simple cost of the materials is not sufficient to establish
this proration. The calculation is based on the installed replacement cost new of
the existing facilities located within the project limits where the owner has the
superior right, divided by the total of the installed replacement cost new for all
the affected existing facilities within the project limits. This calculation produces
the Commission’s share of the total relocation cost.
11.05.06.00 Abandonment or Removal Costs
Cost for removal or abandonment of existing utility facilities are reimbursable provided the
removal or abandonment is prescribed by the transportation project, required for aesthetic or
safety reasons or contains hazardous material that cannot safely remain. In most cases it may
be feasible to abandon the existing utility facilities in place if the existing facilities will not
conflict with the proposed transportation project. Underground facilities containing hazardous
material, i.e., asbestos or lead, should remain where possible. If required to be removed, the
Commission will reimburse owner for normal (non-hazardous) pro rata costs for removal effort
only.
In cases where there is no need to remove the existing utility facilities but the owner requests
for project to proceed with the removal, the Commission shall not contribute any more than
the salvage value of recovered materials credited to the project.
11.05.07.00 Disruption of Service Facilities
Service facilities that are located on the property being served are usually there by permission
of the property owner as a requirement for receiving utility service. The Commission in
acquiring the property being served may, as the new property owner, revoke the owner’s
permission for occupancy and thus require the service facilities to be removed or abandoned. If
some portion of the impacted property remains in private ownership with a continuing need for
utility service or provides current service to other remaining properties, the Commission is
liable for whatever facility adjustments may be necessary. Other than removal of portions of
the severed facilities for safety reasons, which is handled by a separate notice and agreement,
all other utility adjustment costs are treated as cost-to-cure damages in the acquisition of the
impacted parcel if known when the property is appraised, or relocated or reconnected during
construction.
11.05.08.00 Relocation for Non-Transportation Project Use
California case law supports the premise that a utility facility under a franchise must be
relocated at the owner’s expense when required by any proper governmental purpose.
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Required relocations for construction of maintenance stations, drainage, inspection facilities,
functional replacement acquisition sites, for example, are covered under “proper governmental
purpose.”
11.05.09.00 Liability Undetermined
Ideally, liability is determined prior to issuance of a Notice to Owner. This cannot always be
accomplished, however, as sometimes the owner is unable to provide timely documentation
that will allow the Commission to verify the information necessary to determine liability in a
reasonable time. In these cases and when time is of the essence, a Notice can be issued without
liability being determined to ensure project delivery.
The owner must agree to accept the Notice with liability undetermined and perform the
relocation. Preferably this agreement should be in writing. If the owner does not provide a firm
(enforceable) commitment, the certification and project could be in jeopardy.
11.05.10.00 Liability in Dispute
Unlike right of way acquisition, there is no administrative settlement process to resolve
disputes in utility relocations. Utility liability issues are largely based on a factual determination
of what is required to produce a functional replacement for the affected utility facility and who
has the superior position of a prior right.
The preferred method of resolution is to mutually agree on how to handle a particular situation
and what the resultant liability should be.
Litigation is normally used where a large cost is involved or a significant legal premise is at
stake. The decision to proceed to litigation depends heavily on legal counsel’s input as well as
right of way functional needs.
11.05.11.00 Agreement to Disagree
The resolution of the dispute may be too time consuming to be accomplished and still meet
project dates. The Utility Coordinator should attempt an “agree-to-disagree” understanding
with the owner. With the owner’s concurrence, the Notice may be issued using “liability in
dispute” as the liability states in the Notice. If the owner does not concur with the issuance of a
Notice on this basis, a special agreement is required for the advancement of funds, to cover the
funds to a separate interest-bearing account.
11.06.00.00 REPORT OF INVESTIGATION
11.06.01.00 General
The Report of Investigation documents facts and circumstances that support the liability
determination. All information, documentation, and analysis supporting the liability
determination for the required relocation must be included in the Report. The Report of
Investigation must be prepared and approved before the Commission is obligated for the cost
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of relocation. A Report of Investigation is not required for a relocation that is 100% owner
liability if the Utility Coordinator has a claim letter from the owner acknowledging 100%
liability. The Report of Investigation package (sometimes referred to as the “Liability Package”)
includes the following mandatory item:
• Original, signed Report of Investigation
• Owner’s estimate of cost of work to be done
• Color-coded Report of Investigation plan showing work to be done, or a copy of the
Approved Relocation Plan
• Copy of the owner’s claim letter
• Copy of the owner’s documents that support their prior and/or superior rights claim.
• Copy of the proposed Notice to Owner
• Copy of the proposed Utility Agreement
• Copy of the Federal Authorization to Proceed (E-76), if FHWA reimbursement will be
utilized
• The Request for FHWA Specific Authorization, if FHWA reimbursement will be used for
the utility relocations
• Proposed special provisions, if applicable
Additional supporting documentation may be included as deemed necessary by the Utility
Reviewer to support the determination.
11.06.02.00 Report of Investigation Plan
The Report of Investigation plan is crucial to determining liability. Like an appraisal map, it
shows ownership and depicts the before and after location of improvements and property
rights. The plan also provides a visual picture of what the estimate is based on, thus allowing a
quick check of the reasonableness of various measurements and quantities listed in the
estimate. Since relocation liability is generally based on property rights, accurate plotting of the
Commission’s and owners’ rights of way is essential to an accurate liability determination.
11.06.03.00 Report of Investigation Plan Requirements
A color-coded plan or an Approved Relocation Plan shall be included with every liability
package. The plan must accurately and clearly plot the following elements:
• Existing and proposed right of way lines
• Existing and proposed access control lines (if applicable)
• Existing and proposed highway centerline
• Existing and proposed utility facility features: location, type, size, and length
• Owner’s easements or other claimed prior right areas
• Proposed property rights the Commission is to supply, if applicable
• Highway geometric features, if the relocation is related to them
• Legend and title block
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11.06.04.00 Owner’s Estimate of Cost
The owner’s estimate of cost serves the following purposes:
• It provides estimate details, the proposed utility relocation plan and allows a
preconstruction determination of reasonableness of the planned functional
replacement for the affected utility facility.
• It provides support for FHWA Specific Authorization.
• It provides an amount to be used for encumbering capital dollars for utility work.
• It becomes a contract pay amount for lump-sum agreements.
11.06.05.00 Standard Estimate Format
The standard estimate format must contain the following elements:
• Cost of labor
• Cost of materials (include a list of major items)
• Cost of transportation and equipment
• Cost of contracted out work
• Cost of overhead (include a list of major components)
• Cost of new right of way (if required)
• Credits due the Commission shown separately for betterment, depreciation and salvage
• Percentage and dollar amount of the Commission’s liability
Each item above must be shown on the estimate. If an item does not apply, it still must be
listed with a zero in the cost column. The same format is used for lump-sum estimates, except
all costs must be itemized and detailed by category, e.g., labor by number of hours and dollars,
materials by quantity and dollars, etc.
The cost estimate for work to be performed or paid for by the owner must come from the
owner. If the owner uses broad-gauge units in their estimates, e.g., a per-pole or per-meter
cost factor, the broad-gauge units may be substituted for the cost of labor, material, and
transportation and equipment (listed above). The owner must provide a statement about the
methodology used in arriving at the broad-gauge unit cost, e.g., “based on 20__ costs
incurred.” Right of way costs, credits and the Commission’s liability must still be listed
separately.
If for timing reasons it is not possible to obtain an adequate estimate from the owner, the
Utility Coordinator may prepare an estimate based on the owner’s plan using the owner’s
current cost data from similar utility relocation work. Justification for estimates prepared by the
Commission must be in the file. The Commission’s estimates shall not be used as a basis for
lump-sum agreements. The Utility Coordinator should ensure an owner’s prepared estimate is
received as soon as possible, normally within thirty to forty-five (30-45) days of issuing the
request for an estimate.
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11.07.00.00 NOTICE TO OWNER
11.07.01.00 Notice to Owner to Relocate General
Owners must be given formal notice to relocate, remove, abandon, protect, or pothole, their
utility facilities to accommodate proposed transportation project. The Notice to Owner also
sets forth a schedule for performing proposed utility relocation work and a statement of
liability for the cost of relocation.
It is essential that the Notice reflects a true “meeting of the minds” between the Commission
and the owner regarding the location and type of facility, the work that is being ordered, the
schedule to accomplish it, and the liability for the cost of work. A “meeting of the minds” is
necessary to prevent subsequent disagreements about the need for the work, scheduling,
liability, etc., that may arise and delay the project. Since issuance of the Notice may obligate the
Commission to pay for all or a portion of the cost of relocation, there must be a specific
understanding of the required work to which the Commission is obligating itself.
11.07.02.00 Joint Facility Relocations
When two or more utility owners occupy or are relocating to joint poles or joint trenches, the
relocation work normally cannot be performed concurrently. It must instead be performed
sequentially. If, after the first owner’s work is completed, the last owner to move does not have
sufficient remaining time to perform work as ordered by the Notice, it would be very difficult to
hold them responsible for right of way delays if the Commission did not adequately coordinate
the work of all owners.
To be fair to all owners involved and to ensure timely utility clearance of the project, the Utility
Coordinator must establish the overall relocation time frame and the sequence of operations
for each owner involved in the joint relocation. The completion dates set out in each Notice
must be specific to each owner and be based on the overall coordinated schedules necessary to
complete all work within the project clearance schedule.
11.07.03.00 Preparation
The Utility Coordinator is responsible for preparing the Notice to Owner in accordance with the
following guidelines:
• The Notice will be prepared only after the Utility Coordinator has received relocation
plans, the owner’s estimate of cost and determined liability. Exceptions to this policy are
outlined in section 11.05.
The Notice will be prepared and issued to the owner with sufficient lead time to allow a
reasonable relocation schedule. Failure to provide reasonable notice may jeopardize
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timely project certification or result in the Commission becoming liable for contractor
delay caused by unresolved utility conflicts.
• The Notice from the Utility Coordinator should never state how the owner is to perform
the relocation work, such as: “Owner shall underground the relocated facility” or
“Owner shall temporarily relocate their facilities.” The details of the method and
conduct of the relocation must be left to the owner’s discretion. Including requirements
of this type in the Notice may obligate the Commission to reimburse the owner for any
additional costs associated with the work.
A single Notice should be used covering each owner involvement on each project to the extent
possible. Multiple Notices are issued when an owner operates multiple utility types, e.g., if a
project has relocations for SCE-Electric Transmission, SCE-Electric Distribution and SCE-
Communication on a single project, it would require three (3) Notices to Owner.
11.07.04.00 Processing
All Notices to Owner must be supported with the Report of Investigation package. Upon
approval by the Right of Way Manager, the Notice can be transmitted to the owner.
When a Utility Agreement is needed for the required relocation work, it may be transmitted to
the owner along with the Notice.
If the replacement location is within Commission right of way, the owner must have a revised
license prior to beginning the relocation work.
11.07.05.00 Utility Coordinator Responsibilities
The Utility Coordinator is responsible to coordinate all activities required to support the Notice
to Owner. Duties performed generally consist of the following:
• Ensures Right of Entries, Licenses or Permits have been obtained at the new location, if
needed, to work on others property.
• Follow up to ensure relocation is done by the date specified in the Notice.
• Coordinate with construction management team for inspection of the owner’s
relocation work.
• Coordinate preconstruction meetings with the Project Manager or construction
manager, the owner’s representative, and the construction management team on utility
adjustments planned to take place after award of the contract.
• Obtain approval for all change-in-scope relocation work resulting from project changes
and issue Revised Notices to Owner, when necessary.
11.07.06.00 Owner Responsibilities
The owner is responsible for completing all work as specified in the Notice to Owner, License,
and Utility Agreement (if required). Upon receipt of Notice to Owner, the owner shall have a
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minimum of sixty (60) days to complete owner’s facilities rearrangement, unless the owner
agrees to a shorter time frame. If the owner agrees to a shorter time frame, this agreement
must be documented in the utility file/diary. Failure to comply with terms of the Notice may
potentially subject the owner to payments for resulting construction delays.
11.07.07.00 Relocation Monitoring
The Project Manager or their designee is responsible for monitoring the owner’s relocation of
their facilities to ensure compliance with approved relocation plans and documents the
relocation activities and issues. The monitoring ensures that all utility facility conflicts within
the project limits are resolved and confirms labor, equipment, and materials used to
accomplish Commission reimbursed work. The estimate of the amount of materials removed
for salvage should also be validated. This information is necessary to provide reasonable
verification of the owner’s bills.
Under no circumstances is there to be field authorization to deviate from the approved plan of
work as ordered in the Notice. A revised Notice is necessary for any changes to the work to be
performed.
11.07.08.00 Revised Notices
The Notice to Owner is a legally binding order on the receiving owner to adjust their facilities in
a prescribed manner and time. As such, the issued Notice must always agree with the latest
plan for adjustment and ordered completion time. The standard Utility Agreement clauses
provide that a revised Notice to Owner shall be issued whenever there is a deviation from the
agreed plan for adjustment of the facility or whenever the completion date is changed. It may
also be necessary to issue a revised or addendum to the Utility Agreement. These changes are
comparable to construction change orders and are crucial to establishing a legally binding
understanding with the owner.
If the utility relocation is FHWA funded, a supplemental FHWA Specific Authorization will be
required and the Federal Authorization to Proceed (E-76) estimate of cost may have to be
increased.
11.08.00.00 UTILITY AGREEMENTS
11.08.01.00 Utility Agreements General
In a Utility Agreement, the Commission agrees to comply with all federal and state laws,
regulations policies and procedures relative to the design, right of way, acquisition,
construction and maintenance of the relocation of facilities necessitated by the transportation
project. It is normally processed once per project for every relocation of facilities affected.
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11.08.02.00 Circumstances Requiring a Utility Agreement
The Commission and the utility owner must enter into a Utility Agreement whenever the
Commission is paying or receiving payment for all or a portion of the cost of relocation of a
utility facility, regardless of who performs the work. The number assigned to each Utility
Agreement shall be the same number assigned to the corresponding Notice to Owner covering
the same facilities. Each Utility Agreement must be submitted with the Report of Investigation
package.
A single agreement is used for each owner’s involvement on a single construction project to the
extent possible. Separate agreements may be necessary for individual purposes such as design,
advance of funds, or physical relocation(s). The Utility Coordinator is responsible for preparing
the Utility Agreement.
11.08.03.00 Standard Clauses
For highway projects, the Utility Agreement clauses contained in Chapter 13 of the Caltrans
Right of Way Manual shall be used whenever possible. For non-highway projects, the State
utility agreement can be used as a reference for agreement with the owner at the utility
coordinator’s discretion. Use of these standard clauses will reduce errors and omissions as well
as save preparation, review, and approval time as the clauses have been reviewed and
approved by most major utility owners, Caltrans’ Headquarters Legal Division as well as the
Commission. The standard clauses are numbered for ease of reference. The Utility Coordinator
preparing the Utility Agreement selects the appropriate clause(s) to be used.
FTA does not have specific provisions for utility agreements, but does require the Commission
to execute an agreement for relocating or rearranging facilities with the entity responsible for
the facilities prescribing the procedures for the relocation and/or rearrangement of the
facilities for the purpose of accommodating the construction of the project. FTA Circular
5010.1D indicates that only actual allowable, allocable, and reasonable costs are reimbursable.
Where the work is to be performed by the public utility’s forces, no profit is allowed; and
reimbursement is limited to the amount necessary to relocate and/or rearrange the facilities to
effect a condition equal to the existing utility facilities. Generally, reimbursement would not
provide for greater capacity, capability, durability, efficiency or function, or other betterments
or enhancements to the existing utility system, except for meeting current State and local
codes. Prior FTA approval is not required in reaching a utility relocation agreement.
11.08.04.00 Processing
All Utility Agreements must be submitted for approval, along with the Report of Investigation,
to the Right of Way Manager for approval.
After the Right of Way Manager has approved, the Utility Coordinator will need to perform the
following:
• Obtain a contract number from the contracts group for the Utility Agreement.
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• Send the Utility Agreement to RCTC’s legal counsel for review and approval. The
Commission’s legal counsel shall “wet-ink” sign four original Utility Agreements.
• Obtains approval from the Board of Commissioners.
• Forward the Utility Agreements to the utility owners for execution.
• Obtain the executed Utility Agreements from the owners and facilitate execution by the
Executive Director.
• Send original Utility Agreements to the owner, Commission legal counsel, Commission
contracts department and place one in the utility relocation file.
11.08.05.00 Amendments to Utility Agreements
Whenever portions, but not all, of a Utility Agreement must be changed, the change shall be
accomplished through an “Amendment to Utility Agreement.” In most cases, Amended Utility
Agreements are processed the same as Utility Agreements.
11.08.06.00 Amendments for Payments in Excess of Original Utility Agreement
Although all efforts should be made to minimize any costs in excess of the estimate contained
in the Utility Agreement, the Commission will consider final payment requests for reasonable
reimbursement of utility relocation costs not exceeding 125% of the estimated amount as
stated in the original Utility Agreement. The basis for this exception is the Commission has
obligated itself to participate in the actual and necessary cost of Commission-ordered
relocation of the utility owner’s facilities at an estimated cost to the Commission. Since the cost
amount shown in the Utility Agreement is an estimate and not a fixed contractual amount, the
Commission allows for reasonable adjustments to the estimate.
Amounts in excess of 125% of the original Utility Agreement estimate must be covered by an
Amended Utility Agreement before payment is requested and also requires approval from the
Board of Commissioners. In addition, before an Amended Utility Agreement or a bill exceeding
125% of the estimated amount in the original Utility Agreement can be processed, the Utility
Coordinator must receive and approve written documentation of the reasons and identification
of the basis for the increase.
Amended Utility Agreements are not required when the total billing is less than the original
Utility Agreement amount.
11.08.07.00 Amendments for Change in Scope of Work
Any significant change to the originally planned and agreed-upon work must be covered by an
Amended Utility Agreement, a Revised Notice to Owner and a Supplemental FHWA Specific
Authorization (if FHWA funding is involved) before work on the proposed changes commences.
Preparing an Amended Utility Agreement and Revised Notice for a change in scope is necessary
to:
• Comply with federal requirements for preapproval of relocation plans.
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• Calculate proration of liability.
• Modify the previously ordered plan of relocation, if necessary.
11.08.08.00 Special Utility Agreements
Occasionally, a special utility agreement is needed for a variety of reasons, e.g., liability
disputes, engineering or construction reimbursement for a project that has been canceled or
delayed, or where a Utility Agreement does not exist. The special agreement should recite the
circumstances (liabilities, incurred costs, etc.) and the agreed course of action and estimated
additional costs.
11.08.09.00 Utility Agreement to Cover Advance Engineering Effort
Occasionally, an owner will expend considerable engineering effort on a planned relocation
before the Utility Agreement is executed. Upon request, a Special Utility Agreement may be
completed and used as a basis for reimbursing the owner’s costs. The usual Report of
Investigation is required to support the Commission’s liability to pay. Upon issuance of the
Notice for actual physical relocation, the Special Utility Agreement should be amended to cover
the remaining items pertinent to relocation work.
11.09.00.00 CERTIFICATION PHASE
Certification is required for all FHWA and State funded projects, as well as projects on the State
Highway System. Although a formal certification is not required for other funding agencies or
locally funded projects, it is necessary to have formal documentation of utility status prior to
putting the project out to bid. The Project Engineer’s Certification is required as part of the
Right of Way Certification.
11.09.01.00 Right of Way Utilities Certification
The Right of Way Utilities Certification is a written statement summarizing the status of all
utility facilities located within the limits of the proposed construction project. The certification
identifies all utility facilities found to be within the project area and documents if they are
affected and, if so, whether they have been or will be relocated, removed, or protected as
required for the construction, operation, and maintenance of the proposed project. The
Commission shall certify all projects where a PS&E is prepared or federal funds are involved,
prior to the Commission advertising and awarding a construction contract.
In accordance with 23 CFR 635.309(b), utility work should be accomplished during construction
only when it is not feasible or practical to complete the work prior to construction due to
economic or special coordination features. Utility work that cannot be completed in advance of
construction contract award shall have special provisions in the standard specifications portion
of the PS&E identifying the utility work and details of the coordination involved. All facilities not
cleared from the project limits before construction commences shall be shown in the project
plans to provide the necessary coordination.
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In order for the project to be certified, all Utility Agreements must be signed and executed by
the appropriate utility owners, and Notice to Owners must also be issued.
11.09.02.00 Utility Certification for Design/Build Projects
Until project design is completed, it is difficult to determine the ultimate effect on utility
facilities. A Utility Certification may be delayed, therefore, until design is completed, but before
construction commences.
11.10.00.00 CONSTRUCTION PHASE
11.10.01.00 General
Utility Coordinator activities performed during the construction phase of the project generally
consist of the following:
• Coordinating with construction manager and/or construction contractor and owner on
compliance with Notice to Owner requirements.
• Handling utility relocations discovered during construction.
• Resolving utility relocation work that becomes wasted work.
• Monitoring construction and document activities for Commission reimbursable utility
relocation work.
By the time a project reaches the construction phase, the Utility Coordinator should already
have sent copies of all Notices to Owner, approved relocation plans to construction and have
executed Utility Agreements, if required. Ideally, most utility relocation work will be finished
before project construction commences. However, since this is not always possible,
coordinated utility work may be necessary. Coordinated work must be addressed in the
“Special Provisions/Obstructions” portion of the Commission’s PS&E package.
11.10.02.00 Pre-Construction Notification/Meeting
Each owner of affected facilities remaining within the project construction limits shall be
provided the contact information for the construction manager and the selected contractor.
Arrangements should also be made for a joint field meeting with the owner’s representatives,
the Project Manager, the utility coordinator, the construction manager and the construction
contractor to work out construction schedules. Early coordination with local jurisdiction
regarding street closures, traffic handling plans, night work, etc. is important.
11.10.03.00 Positive Location Work During Construction
Standard special provisions require the contractor to contact a regional notification center
(Government Code Section 4216.2) before conducting any excavation on the project, as well as
exercise due diligence in working in areas with possible underground facilities. If the utility
verification and positive location processes were properly completed during design, any
additional positive location demands the Commission’s contractor places upon the owner
should be at the contractor’s sole expense. If additional positive location work was planned by
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the Utility Coordinator to be done during construction, this work should be included in the
original Notice.
11.10.04.00 Inspection of Utility Relocation Work
The Utility Coordinator is responsible for ensuring that relocation work is inspected as required
and that adequate records are maintained for Commission reimbursed work. The Utility
Coordinator is responsible to notify the construction manager of planned relocation work
requiring inspection. The Project Manager is responsible for inspection of such work and
maintaining written diaries of the work. Inspection has three major objectives:
• Ensure owner’s work complies with design, construction, and traffic requirements.
• Ensure proper placement of utilities to clear project construction in accordance with the
Notice to Owner, Encroachment Permit, and Utility Agreement.
• Observe and record the labor, equipment, and materials used to accomplish the work,
as well as materials removed for salvage when any work is to be performed at
Commission expense by reviewing the inspector’s diaries, the Utility Coordinator can
make a reasonable verification of the owner’s bills.
Proper construction for utility companies may be regulated by the California Public Utilities
Commission (CPUC), FERC and/or FCC. Utility construction may be controlled by PUC issued
General Orders. Under no circumstances is the Commission to review the engineering adequacy
of utility facilities except for those features that may adversely affect project integrity or safety.
11.10.05.00 Discovered Work and Emergencies
Discovered work includes additional unanticipated utility facility adjustments that are required
as a result of newly identified facilities, incomplete or inaccurate verification of known facilities,
or the discovery of previously unidentified utility conflicts. Emergencies can be a result of storm
damage.
The Project Manager or Construction Manager should immediately notify the Utility
Coordinator who will notify the owner, when determined, of the newly discovered conflict or
emergency requirement. The Project Manager or Construction Manager should provide the
location and type of the existing facility and immediately follow up in writing with a suggested
plan for conflict resolution. Although the Project Manager or Construction Manager is typically
already aware of this responsibility, the Utility Coordinator should request an investigation of
other work that the Commission’s contractor can do to avoid potential contractor delays.
The Utility Coordinator must expedite liability determination and preparation of a new or
revised Notice to Owner and Utility Agreement along with any new license required for the new
work. In addition, the Utility Coordinator must ensure that any additional or unanticipated
utility work takes place within the original environmental “footprint” described in the
environmental document. If environmental reevaluation in the new area is necessary, no work
other than studies or positive location should proceed.
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11.10.06.00 Changes to Planned Relocation Work
The Utility Coordinator must issue a Revised Notice to Owner under the terms of the Utility
Agreement when it is discovered that a planned relocation needs to be changed. The owner
must agree to and acknowledge the change as provided on the Revised Notice Form. Work on
the change may not be started until the Revised Notice has been agreed to or acknowledged by
the owner. Changes in the scope of the work will also require an amendment to the Utility
Agreement.
11.10.07.00 Wasted Work
Wasted work occurs when the owner has relocated their facilities in accordance with a Notice
to Owner and the Commission subsequently determines that all or a portion of the newly
relocated facility must be adjusted again to avoid conflict with planned construction. If the
project is a State Highway System freeway project, the Utility Coordinator should consult the
Master Contract to determine if wasted work relocations and payments is addressed.
The procedures for handling wasted work are similar to discovered work except that the
Commission is liable for the cost of all completed relocation work deemed to be wasted as a
result of a change in construction plans. The Project Manager must verify the wasted work
resulted from plan changes rather than improper contractor work procedures.
The Revised Notice to Owner shall identify what work in the original Notice was wasted and
what new work is to be done. The Revised Notice must also state that liability for wasted work
is the Commission’s responsibility. Cost of all new work is based on liability as set forth in the
current Agreement or as determined by usual liability procedures.
Note: The Commission’s costs for wasted work are not federal aid reimbursable.
11.11.00.00 PAYMENT PHASE
11.11.01.00 General
Activities performed during this phase generally consist of the following:
• Obtaining bills from owners
• Checking and verifying bills
• Processing bills for payment
• Verifying transactions entered
• Billing or refunding local agencies pursuant to Cooperative Agreements
• Tracking progress payments
11.11.02.00 Processing Bills from Owners
Generally, the Utility Agreement will provide that owners bill the Commission at least quarterly,
but not more than monthly, during relocation of their facilities. Immediately after completion
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of the owner’s work, the Utility Coordinator should make a written request to the owner
requesting submittal of the final bill within ninety (90) days of the date of the letter. The Utility
Coordinator should follow up with a letter to the owner every sixty (60) days if the bill has not
been received. The Utility Coordinator must give the owner a thirty (30) day notice before
closing the file. Owners may operate under PUC, FERC or FCC rules and payment should be
reviewed according to such rules.
11.11.03.00 Review of Owner’s Bill
When the bill is received, the Utility Coordinator shall check to see if it is a partial or final bill.
Since consistent format will facilitate review, the bill should be in a format similar to that used
for the original estimate of cost. The Utility Coordinator is responsible to check the bill for
consistency with the Utility Agreement and the owner’s previously submitted and approved
relocation plan and estimate of cost and to ensure credit for previously identified betterments
has been received. The bill must be on the owner’s letterhead with the vendor’s full address
and contain the date of service, the invoice date, and an itemized description of the services. If
the bill is not the original invoice, it must be signed by the appropriate owner representative.
All bills must be addressed to the Commission, or the Commission will not pay the bill, and must
contain the Utility Agreement number. If the owner’s invoice does not contain the Utility
Agreement number, the Coordinator must imprint the Utility Agreement number on the invoice
or bill.
11.11.04.00 Bill Discrepancies
If discrepancies are discovered in the owner’s bill, the Utility Coordinator must return the bill to
the owner with a request for correction. The Utility Coordinator must keep a copy of the bill
and the form in the utility file for documentation.
11.11.05.00 Partial Billings
Partial bills are usually paid routinely, if the total of the partial bills does not exceed the amount
under the Utility Agreement. All partial bills must show an itemization of the charges. A review
of partial bills is essential where the Commission is due an unusually large credit (large
betterments) or where billing exceeds work actually completed. The procedure for payment is
the same as for final bills.
11.11.06.00 Final Bills
Final bills must contain detailed charges in a format similar to that in the original estimate and
be fully itemized. They must also contain any depreciation and salvage credits due to the
Commission. The final bill must also contain the “start date” of the physical relocation work.
The Utility Coordinator must check the start date against the FHWA Specific Authorization date,
if applicable, to ensure proper federal reimbursement. Payment of a final bill may be made up
to 125% of the Utility Agreement amount without an amendment.
11.12.00.00 PROPERTY RIGHTS CONVEYANCES
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11.12.01.00 Requirements for JUA/CCUA
JUA and CCUA are documents that perpetuate the owner’s rights of way that are within the
right of way. Both documents place limiting restrictions on the owner’s use to ensure the
owner’s utility use is compatible with the Commission's use. The documents may be entered
into only where the owner’s original easement possessed prior rights in the right of way
acquired by the Commission and did not contain termination or relocation clauses that were
enforceable by the Commission.
These documents are used only for the portion of the owner’s utility easement that is within
the right of way. If the Commission owns the right of way in fee, a JUA or CCUA may be used. If
the Commission owns the right of way in easement only a CCUA may be used.
In the case of an easement, the owner’s prior rights must be carefully checked for unusual
conditions. For example:
• The owner may have an easement that requires relocation at the owner’s expense but
obligates the landowner (Commission) to issue a new easement, JUA or CCUA, for the
newly relocated facilities.
• The owner’s easement may have been granted for a specific time period, in which case
the JUA or CCUA must be written to terminate on that same specified date. Following
termination, the utility facility is considered as being under a license, which terms
should be described.
A JUA cannot be used where the Commission only possesses an easement right of way. The
Commission, as an easement holder, has no legal right to grant a utility easement in a new
location.
11.12.02.00 Joint Use Agreements
A JUA is used when the owner’s facility will remain on lands owned by the State but will be
relocated to a position outside, or partly outside, the owner’s existing right of way where the
owner had prior rights. It is also used where the owner’s right of way is not occupied by any
existing utility facilities but the owner will not quitclaim the easement because of an unknown
future use.
When existing facilities have been relocated to a new location both within the right of way and
outside the right of way on a newly acquired utility easement, the JUA describes only the new
location of the facilities within the right of way. The easement area outside the right of way is
covered by acquisition on the owner’s easement form or conveyed by the Commission if
acquired in the Commission’s name.
11.12.03.00 Consent to Common Use Agreements
A CCUA is used when all of the owner’s facilities, whether rearranged or not, will remain within
the right of way area covered by the owner’s existing easement area.
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11.12.04.00 Prescriptive Rights
It is appropriate to perpetuate the owner’s rights established under prescription with a
JUA/CCUA. The extent of a prescriptive right, however, must be measured by the owner’s use
during the period the owner occupied the site under prescriptive right (not less than five (5)
years). Granting any rights greater, or specifying a dimension to the easement where none is
documented, is a betterment and constitutes a gift of public funds. Accordingly, the precise
extent of the prescriptive right (for example, the right to maintain a single line of poles with one
cross-arm and three 200 pair telephone cables) should be set out in any JUA/CCUA.
A prescriptive right cannot be established over land owned by any governmental entity.
Although rare, the Commission may have acquired land not knowing a prescriptive easement
existed prior to the Commissions fee ownership.
11.12.05.00 Easement Conveyance Processing
Conveyance of easements to owners is by deed. To initiate this procedure, the Utility
Coordinator may include a clause(s) in the Utility Agreement for property rights to be conveyed
and the form of conveyance. The clause(s) should also include credit to the Commission for the
owner’s share of the cost or market value of easements conveyed, as applicable. The cost of
Commission acquired utility easements is part of the cost of relocation and must be
apportioned between the Commission and the owner in accordance with the Utility Agreement.
Easements to be conveyed across excess lands must be located so as to minimize possible
adverse conflicts to site development. Requests for easements across excess lands not
originating as a result of a Utility Agreement obligation should be handled in accordance with
usual excess land procedures.
11.13.00.00 BUY AMERICA
11.13.01.00 General
Implementation of Moving Ahead for Progress in the 21st Century (MAP-21) has broadened
how Buy America is applied to federally funded construction projects. MAP-21, section 1518,
amended 23 U.S.C. 313, is to apply to all contracts eligible for federal assistance carried out
under a NEPA document regardless of funding, if at least one contract has federal funds.
11.13.02.00 Buy America Requirements
For federally funded projects, the Buy America requirements stated in 23 U.S.C. 313 and 23 CFR
635.410 apply to all iron and steel materials, 90% by weight that is permanently incorporated in
a project. The provision requires that all manufacturing processes be done domestically.
Manufacturing begins with mixing and melting and continues through the coating stages.
“Coatings” include epoxy coatings, galvanizing, painting or any other coating that protects or
enhances the value of the material.
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11.13.03.00 Buy America Certification
The Commission requires that the utility owners provide reasonable assurance that utility
materials subject to the Buy America requirements are compliant prior to permanent
installation. The Commission will accept either the utility owner’s self-certification or the
vendor/manufacturer’s certification.
11.13.04.00 Waivers to the Buy America Provisions
For federally funded projects, the Commission may request a waiver if the Buy America
provisions are inconsistent with the public interest or iron and steel are not produced
domestically in sufficient quantities and at a satisfactory quality.
Waivers are allowed for specific materials on a project by project basis. There are nationwide
waivers, but these are extremely rare and not advisable.
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PROJECT CLOSE OUT CHAPTER 12
12.00.00.00 PROJECT CLOSE OUT
12.01.00.00 PURPOSE
The purpose of this chapter is to outline the Commission’s policies and procedures for closing
out Commission projects. It is critical to the success of the project that all of the necessary right
of way activities to complete the project are fully performed.
12.02.00.00 FILE REVIEW AND QUALITY CONTROL
Upon completion of the right of way aspects of the project, the file should be reviewed for
quality control purposes and to ensure preparedness for any potential audits.
12.02.01.00 General
Files should be organized and presentable. There should be no post-it notes or loose leaf
papers. All duplicates in the file should be removed. However, if documents have been revised
as part of the right of way process, each version should be kept in the file to show the history of
the changes. Return receipts should be attached to the documents to which they pertain.
12.02.02.00 Parcel Diaries
Prior to closing out files, the parcel diaries should be reviewed to ensure they include the
following:
• An entry for each meeting, phone call, or written correspondence
• The agent’s initials for each entry
• The method of delivering each correspondence (overnight, certified mail, regular mail,
etc.)
• Names of individuals involved in each meeting
• Clear conclusions to any questions or concerns raised by the property
owner/displacee/utility owner
• A logical thought process that an oversight agency, an attorney, a judge or a jury could
understand
• The final disposition of the file
12.02.03.00 Acquisition File Documentation
All acquisition files should include the following documents:
• Parcel Diary with entries initialed
• Preliminary Title Report
• Realty Appraisal(s)
• Review Appraisal - if applicable
• Fixture and Equipment Appraisal - if applicable
• Goodwill Appraisal - if applicable
• Offer letter(s) with supporting documentation
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PROJECT CLOSE OUT CHAPTER 12
• Counteroffers and responses (letters or emails) - if applicable
• Administrative settlement memo if final agreed amount differs from offer amount
• Title Policy
Files for voluntary settlements should include the following:
• Possession and Use Agreement - if applicable
• Executed Purchase and Sale Agreement
• Escrow Final Closing Statement
• Recorded Deeds
Files for court ordered settlements should include the following:
• Order of Prejudgment Possession
• Final Order of Condemnation or Stipulated Settlement Judgment
12.02.04.00 Relocation File Documentation
All relocation files should include the following documents:
• Parcel Diary with entries initialed
• Notice of Eligibility (NOE)
• General Information Notice (GIN)
• Signed claim forms for all applicable areas
• Explanation memo to the file if displacee did not make a claim for a payment they were
eligible for
• Copies of payment checks for payment
• Assignment of payment forms - if applicable
12.02.05.00 Utility Relocation File Documentation
All utility relocation files should include the following documents:
• Parcel Diary with entries initialed
• Specific Authorization issued prior to the commencement of physical relocation work
• Report of Investigation package with determination of liability
• Notice(s) to owners
• Utility Agreements - if applicable
• Copies of any JUA/CCUA’s
• Utility owner’s relocation plans
• Easements - if applicable
• Copies of invoices and checks for payment
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PROJECT CLOSE OUT CHAPTER 12
12.02.06.00 File Retention
All files should be scanned and entered into RCTC’s records retention system.
12.03.00.00 POST RIGHT OF WAY ACTIVITIES
12.03.01.00 Parcel Inventory
Upon completion of the right of way activities, a complete inventory of properties acquired for
the project should be updated and verified. Potential disposition of the properties post-
construction should be identified at this stage. Possible future dispositions include:
• Commission to hold and maintain
• To be conveyed to another agency (City, County, State) or utility owner
• Mitigation/conservation land
• Excess land
12.03.02.00 Right of Way Terms and Special Provisions
Upon completion of the right of way activities, a summary of right of way terms and any special
provisions should be detailed in a list (construction obligations) to be provided to the
construction contractor. At a minimum, the list should include the following:
• Beginning and ending dates of temporary construction easements
• Provisions for advance notice of construction start
• Negotiated terms of construction timing, such as agreed upon times of day, week or
year
• Special conditions granted to the owner such as securing the property perimeter or the
safety of pets
• Agreements as to restoration of a property in the after condition (landscaping, tree
relocation driveway modifications, etc.)
• Construction contract items
12.03.03.00 Co-Operative Agreements
In addition to reviewing prior to commencing right of way activities, upon completion of the
right of way portion of a project, all co-operative agreements should be reviewed to determine
if the right of way provisions have been met and to determine any further Commission
obligations upon completion of construction. Co-operative agreements may identify
responsibilities for disposal of excess land, as-built maps, record maps, vacations,
relinquishments, etc. A list of outstanding action items should be identified for post-project
completion.
12.04.00.00 POST-PROJECT ACTIVITIES
Upon completion of construction, additional close-out is required to successfully ensure all
acquired rights are owned by the appropriate parties. A closure statement or notice of
completion should be obtained from the Engineer of Record and kept in the project master file.
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12.04.01.00 Confirmation of Right of Way Terms and Special Provisions
To ensure the Commission’s obligations have been met and protect the Commission from risk
of potential litigation, the Right of Way Department should confirm the right of way terms and
special provisions were satisfied. Any notices sent to the property owner by the construction
contractor should be obtained for the file. Any deviations from the right of way agreements
should be documented and agreed to in writing by the owner. Depending on the terms of the
acquisitions, it may be necessary to quitclaim or file a temporary construction easement
termination with the County in order to clear title.
12.04.02.00 Land to be Retained by Commission
Land that will continue to be owned and maintained by the Commission shall be incorporated
into the Commission’s property database. If there has been a change in the Assessor Parcel
Number (APN), care should be taken to utilize current APN’s for the ownership record while still
maintaining a reference to the original APN that was acquired.
12.04.03.00 Land Conveyances to Other Agencies
For some projects, it is intended that the land will be owned and maintained by other agencies
after project completion. Examples include highways that will be owned and maintained by the
State, local streets that will be owned and maintained by a City or the County, and utility
easements/parcels that will be owned and maintained by the utility owners.
12.04.03.01 Conveyance Documents. Language for the conveyance documents will need to
be coordinated with the receiving agency, however, in no circumstance can the
Commission convey rights it has not acquired. The Right of Way Department
must review the acquisition documents prior to conveyance to any other agency
to ensure that the rights being conveyed have been acquired. Easements
acquired by the Commission must be assigned or quitclaimed as only the
underlying fee owner can grant an easement.
12.04.03.02 Legals and Plats. Generally updated legals and plats are required for
conveyances to other agencies. If the full property that was acquired is being
conveyed, an updated legal and plat is still generally necessary to update APN’s
and obtain a current surveyor stamp. For properties where a portion of the
property is being conveyed, a surveyor will need to utilize the right of way maps
to identify the portion that is to be conveyed. The surveyor should also prepare
a legal and plat for the remainder property for future excess land disposal.
12.04.03.03 Reservations. The right of way maps and Engineer of Record should be
consulted to determine if any rights need to be retained from the portions being
conveyed for future Commission access, drainage or other uses.
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12.05.00.00 EXCESS LANDS
Upon completion of the project construction, lands identified as excess land should be disposed
of in accordance with the Commission’s policies and procedures outlined in Chapter 8.
12.06.00.00 STREET VACATIONS
As part of a transportation project, the Commission may eliminate all or a portion of a street.
The Commission’s Right of Way Department should follow the local City or County procedure
required for street vacations.
12.07.00.00 RELINQUISHMENTS
As part of a transportation project, the Commission may eliminate all or a portion of a state
highway. The Commission’s Right of Way Department should coordinate with the State to
relinquish the former highway section to a local agency, or vacate the highway in accordance
with the State’s policies and procedures.
12.08.00.00 RECORD MAPS AND AS-BUILTS
Record maps should be updated and filed with the County and as-built maps should be
generated upon completion of the project.
12.09.00.00 UTILITY RELOCATION FILE CLOSE-OUTS
For utility relocations occurring during construction, the Utility Coordinator must close the files
upon completion of the utility relocation which may coincide with the completion of the project
construction.
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RESOLUTION NO. 15-020
RESOLUTION OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AMENDING THE RCTC RIGHT OF WAY POLICIES AND PROCEDURES MANUAL
WHEREAS, the Commission previously adopted the original RCTC Right of Way
Policies and Procedures Manual on July 11, 2007; and
WHEREAS, the Commission previously adopted amendments to specific sections
of the RCTC Right of Way Policies and Procedures Manual at various dates thereafter;
and
WHEREAS, the Commission desires to amend its right of way policies and
procedures to ensure compliance with applicable law and regulations and to
incorporate best practices for the Commission’s right of way activities.
NOW, THEREFORE, the Riverside County Transportation Commission does
hereby resolve as follows:
Section 1: The RCTC Right of Way Policies and Procedures Manual previously
adopted on July 11, 2007, as amended, is hereby replaced in its entirety
with the revised RCTC Right of Way Policies and Procedures Manual (the
“Manual”), set forth in Attachment 1, attached hereto and incorporated
herein.
Section 2: The Riverside County Transportation Commission hereby approves and
adopts the RCTC Right of Way Policies and Procedures Manual, as
revised, to be effective immediately.
APPROVED AND ADOPTED this 14th day of October, 2015.
_____________________________________
Daryl R. Busch, Chair
Riverside County Transportation Commission
ATTEST:
_________________________________
Jennifer Harmon
Clerk of the Board
ATTACHMENT 2
9
Revised
RCTC Right of Way Policies and
Procedures Manual
a n r, Way Manager
Previous Right of Way Manual Adoptions
~ July 11, 2007
• The Commissioners adopted the Right of Way
Policies and Procedures Manual.
~ March 13, 2013
• The Commissioners adopted an amendment to
Section 7-3 related to Relocation Assistance
Appeals.
9/28/2015
1
Revised Right of Way Policies and Procedures Manual
Chapters
);> Chapter 1: General Information
);> Chapter 2: Right of Way Management Plan
);> Chapter 3: Title Report, Escrow Services and Deeds
);> Chapter 4: Survey's and Legal Descriptions
);> Chapter 5: Real Property Appraisal Basic Operating Policies
);> Chapter 6: Acquisition, Negotiation and Eminent Domain
);> Chapter 7: Relocation Assistance
);> Chapter 8: Property Management
);> Chapter 9: Demolition, Clearance and Right of Way Certification
);> Chapter 10: Environmental Inspection, Remediation, and Mitigation
);> Chapter 11: Utility Relocations
);> Chapter 12: Project Close Out
2015 Revisions
Reviewed and Revised all 12 chapters to:
• Conform to Industry Best Practices.
• Conform with current federal and state laws, regulations,
and policies.
• Comply with FTA triennial audit corrective action.
• Include a new section for project closeout.
9/28/2015
2
9/28/2015
Next Steps
Review of Revisions
Legal counsel • Final Revisions
Commission adoption October 14, 2015 • Submit to FTA by October 21, 2015
3
AGENDA ITEM 10
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: September 28, 2015
TO: Budget and Implementation Committee
FROM: Jillian Guizado, Management Analyst
Brian Cunanan, Commuter and Motorist Assistance Manager
THROUGH: Robert Yates, Multimodal Services Director
SUBJECT: SB 821 Bicycle and Pedestrian Facilities Program Reallocation for the City of
Jurupa Valley
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Approve the reallocation of Fiscal Year 2013/14 returned project funds in the amount of
$130,000 to the city of Jurupa Valley’s (Jurupa Valley) Golden West Avenue Sidewalk
Infill project, previously funded with $70,000 in the FY 2013/14 SB 821 Bicycle and
Pedestrian Facilities program recommended funding list;
2) Receive and file an update on the status of the $556,508 remaining from the FY 2015/16
call for projects; and
3) Forward to the Commission for final action.
BACKGROUND INFORMATION:
Two percent of the annual Local Transportation Fund (LTF) revenue is made available for use on
bicycle and pedestrian facility projects through the Commission’s SB 821 program. This is a
discretionary program administered by the Commission.
At its July 2013 meeting, the Commission awarded $1,780,922 to fund 18 projects as part of its
SB 821 Bicycle and Pedestrian Facilities program. Within this funding cycle, Jurupa Valley was
awarded $70,000 for the construction of the Golden West Avenue Sidewalk Infill project.
In October 2013, staff received a letter from the city of Eastvale (Eastvale) noting the
withdrawal of its Scholar Way project from the FY 2013/14 SB 821 recommended funding list in
the amount of $144,853. The two highest-ranked, unfunded projects on the FY 2013/14 SB 821
recommended funding list were the city of Indio’s (Indio) Jefferson Street project and the city of
Temecula’s (Temecula) Pauba Road Sidewalk Improvements project. Staff recommended using
the returned funds from Eastvale to fully fund Indio’s Jefferson Street project and partially fund
Temecula’s Pauba Road Sidewalk Improvements project. In January 2014, the Commission
approved the FY 2013/14 Mid-Year Revenue Projections presented by the Finance Department.
Agenda Item 10
10
That item included a projection of increased SB 821 funding that was enough to fully fund the
Temecula project. The Commission approved this action in March 2014 making the total
FY 2013/14 SB 821 recommended funding allocation $2,066,819 for 19 projects.
DISCUSSION:
Jurupa Valley Allocation
The agencies that were awarded funds under the FY 2013/14 SB 821 Bicycle and Pedestrian
Facilities program recommended funding list had until June 30, 2015, to complete the projects.
To date, eight of the projects have been completed and the agencies have submitted claims for
reimbursement. Of these eight projects, three of them came in under bid and returned funds
in the amount of $36,041. Eight more projects have been granted administrative extensions
due to justifiable delays. One project is completed and the agency will submit a claim for
reimbursement this calendar year. The two remaining projects are city of Menifee (Menifee)
projects, which Menifee will be unable to complete. Per the attached letter, Menifee is turning
back funds amounting to $99,375.
On June 2, 2015, staff received a letter from Jurupa Valley, which is attached, requesting
additional funds for the Golden West Avenue Sidewalk Infill project in the amount of $130,000
due to previously unforeseen conditions, including right of way, linking existing improvements,
and utility relocations. Jurupa Valley has committed to maintaining the original local match of
50 percent. As such, had Jurupa Valley accounted for the unforeseen conditions in its original
project application, the project would have been scored and ranked the same as it received the
maximum 10 points for the matching funds category (Attachment 3). Jurupa Valley has
submitted a letter of commitment of matching funds to bolster its dedication to funding and
completing this project (Attachment 4).
Staff is recommending that $130,000 of the $135,416 available from the FY 2013/14 SB 821
cycle be reallocated to Jurupa Valley’s Golden West Avenue Sidewalk Infill project for a new
total SB 821 allocation amount of $200,000. Upon Commission approval of the reallocation,
Jurupa Valley will begin construction of the project with an estimated completion date of April
2016.
SB 821 Program Update
In June 2015, the Commission approved the FY 2015/16 SB 821 Bicycle and Pedestrian Facilities
program recommended funding list in the amount of $2,752,015. There was $556,508 of
unallocated funds remaining from the FY 2015/16 call for projects. When the Commission
approved staff’s recommendation in June, it approved placing the unallocated funds in reserves
unless a local agency identified a shovel-ready bicycle or pedestrian project with a funding
need. Following the June meeting, staff received 12 letters of interest for proposed projects
totaling nearly $1.88 million in new funding requests. Staff is currently in the process of
determining whether the projects submitted have been submitted under other funding
Agenda Item 10
11
programs, such as the State’s Active Transportation Program Cycle 2 or the Mobile Source
Reduction Committee’s Local Government Match Program, as well as the extent of eligibility
under the SB 821 program guidelines. Staff will continue to work on this matter and return to
the Commission at a later date with a recommendation.
Financial Information
In Fiscal Year Budget: Yes Year: FY 2015/16 Amount: $130,000
Source of Funds: Local Transportation Fund Budget Adjustment: No
GL/Project Accounting No.: 601 62 86106
Fiscal Procedures Approved: Date: 09/17/2015
Attachments:
1) City of Menifee Letter Dated September 18, 2015
2) City of Jurupa Valley Letter Dated June 2, 2015
3) RCTC SB 821 Evaluation Criteria
4) City of Jurupa Valley Letter Dated September 14, 2015
Agenda Item 10
12
ATTACHMENT 1
13
Brad Hancock, Mayor . Laura Roughton, Mayor Pro Tem .
Brian Berkson, Council Member . Frank Johnston, Council Member . Verne Lauritzen, Council Member
8930 Limonite Ave., Jurupa Valley, CA 92509-5183, (951) 332-6464
www.jurupavalley.org
June 2, 2015
Jillian Guizado
Riverside County Transportation Commission
4080 Lemon St, 3rd Floor
Riverside CA 92502
Subject: REQUEST FOR ADDITIONAL FUNDS NECESSARY TO COMPLETE SB 821
FUNDED GOLDEN WEST AVENUE SIDEWALK INFILL PROJECT
(FY2013/2014)
Dear Ms. Guizado,
The City of Jurupa Valley is diligently striving toward closing pedestrian sidewalk gaps leading to
schools from residential corridors. This goal is evident with the proposed construction of the Golden
West Avenue Sidewalk Infill Project (Project). The project was allocated $70,000 from FY
2013/2014 SB 821 Bicycle and Pedestrian Facilities Program Grant, where the City is to provide
matching funds of $70,000. During the course of the design, unforeseen conditions were encountered
that significantly delayed the design completion as well as probable construction cost, including
right-of-way confirmation, joining existing improvements and relocation of additional utilities. The
completion of the design will continue to be funded solely by local City funds.
The final engineer’s cost estimate for the construction of this project is approximately $400,000,
which is admittedly greater than the preliminary scoping estimate for construction. Additionally, due
to the unforeseen conditions encountered during design, the total project cost has escalated to
$500,000. It is understood that there are certain items that cannot be considered for reimbursement
through this grant opportunity. Therefore, the City of Jurupa Valley is requesting the allocation of an
additional $130,000 for a grand total of $200,000. The City would maintain all other aspects of the
project execution, most importantly, the local match committed of 50%. Now that the project design
is complete, the construction of this project is anticipated to commence per the previously provided
schedule. If an additional allocation is not granted, the City is committed to completing this project,
however, with a reduced scope in order to effectively utilize the available funds.
Your consideration is greatly appreciated to assist the City of Jurupa Valley with completing this
important project.
ATTACHMENT 2
14
8930 Limonite Ave., Jurupa Valley, CA 92509-5183, (951) 332-6464
www.jurupavalley.org
If you should have any questions or comments regarding the extension request, please feel free to
contact me at sloriso@jurupavalley.org or at (951) 332-6464 x233.
Sincerely,
Steve R. Loriso, P.E.
Deputy City Engineer
15
RCTC: 04/12/1995
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SB 821 EVALUATION CRITERIA
FACTOR
MAXIMUM
POINTS
1.USE 25
The extent of potential use of a bicycle or pedestrian facility is the
most important factor. Emphasis of this factor helps ensure the
greatest benefits will be derived from the expenditure of SB 821
funds. Relative usage is to be derived from analysis of trip
generators and attractors adjacent to the project.
2.SAFETY 20
Points are awarded on the basis of a project's potential to correct
current safety problems.
3.IMPORTANCE AS A TRANSPORTATION ALTERNATIVE 20
Points are awarded on the basis of a project's potential to attract
users who would otherwise use an automobile.
4.MISSING LINK, EXTENSION, OR CONNECTIVITY 15
Points are awarded to projects that link, are extensions of, or
potentially connect to existing facilities.
5.MATCHING FUNDS 10
This factor is used to help ensure that there is local funding
participation in the project - not just an application for "free"
money. One point would be awarded for each 5% of total project
cost that is financed by the local agency.
6.POPULATION EQUITY 10
The purpose of this factor is to help ensure that one agency does
not receive all the funds. The applicant receives the maximum 10
points if the amount of funds requested does not exceed what the
applicant would receive if the funds were allocated by population.
Year to year totals are recorded so that an applicant could build
up a "credit". (Calculated by RCTC)
7.PHYSICAL ACCESSIBILITY ENHANCEMENT 10 BONUS
The purpose of this factor is to enhance the physical accessibility
of existing pedestrian projects. Applicant agencies may receive
up to 10 "bonus" points for their project proposals which improve
the physical access to existing facilities.
ATTACHMENT 3
16
Brad Hancock, Mayor . Laura Roughton, Mayor Pro Tem .
Brian Berkson, Council Member . Frank Johnston, Council Member . Verne Lauritzen, Council Member
8930 Limonite Ave., Jurupa Valley, CA 92509-5183, (951) 332-6464
www.jurupavalley.org
September 14, 2015
Jillian Guizado
Riverside County Transportation Commission
4080 Lemon St, 3rd Floor
Riverside CA 92502
Subject: REQUEST FOR ADDITIONAL FUNDS NECESSARY TO COMPLETE SB 821
FUNDED GOLDEN WEST AVENUE SIDEWALK INFILL PROJECT
(FY2013/2014) – CITY COMMITMENT TO COMPLETE PROJECT
Dear Ms. Guizado,
In a letter submitted to you earlier this year, I requested the consideration of additional funds for the
construction of the Golden West Avenue Sidewalk Infill Project (Project). This project was allocated
$70,000 from FY 2013/2014 SB 821 Bicycle and Pedestrian Facilities Program Grant, where the City
was to provide matching funds of $70,000. Although the final engineer’s cost estimate for
construction of this project is now $400,000, as identified in this previous letter, the City would like
to continue with the construction of these improvements.
As part of the adopted FY 2015/2016 Capital Improvement Program (CIP) budget of the City of
Jurupa Valley, $200,000 from the City’s Measure “A” Local Funds Program was identified for this
project. The budgeting of the additional $130,000 identifies the City’s commitment to complete this
project. Therefore, by receiving the additional $130,000 from the FY 2013/2014 SB 821 Bicycle and
Pedestrian Facilities Program Grant, the City can complete the project as originally intended.
If you should have any questions or comments regarding the extension request, please feel free to
contact me at sloriso@jurupavalley.org or at (951) 332-6464 x233.
Sincerely,
Steve R. Loriso, P.E.
Deputy City Engineer
ATTACHMENT 4
17
AGENDA ITEM 11
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: September 28, 2015
TO: Budget and Implementation Committee
FROM: Aaron Hake, Government Relations Manager
THROUGH: John Standiford, Deputy Executive Director
SUBJECT: Federal and State Legislation
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Receive and file an update on federal and state legislation; and
2) Forward to the Commission for final action.
BACKGROUND INFORMATION:
Federal Update
The federal surface transportation program again facing an expiration deadline this month,
following another scramble to find funding sources to keep the program alive back in May.
Congress also faces a deadline to keep the federal government open, keep the Federal Aviation
Administration (FAA) open, and a decision whether to reauthorize the Export-Import Bank and
popular tax breaks set to expire. With only a few legislative days remaining in the fall, it is
highly likely that many of the above issues will see short-term extensions propped-up by a
patchwork of unrelated revenue sources.
Meanwhile, leaders of the House Transportation & Infrastructure (T&I) Committee are working
hard on negotiating a surface transportation authorization bill. Committee markup of a House
bill was originally planned for September however, was pushed back to allow further work to
take place among T&I Committee leaders and with the House Ways & Means Committee led by
Representative Paul Ryan (R-WI). Locating the funding (“pay-fors”) for the T&I authorization bill
is essential to moving legislation off the House floor and to a conference committee with the
Senate, who has already passed the Developing a Reliable and Innovative Vision for the
Economy (DRIVE Act).
Another hot topic this month is pressure from the railroad industry to push back the deadline
for implementation of positive train control (PTC). Federal law enacted after the fatal
Metrolink accident in Chatsworth requires PTC to be on line by the end of 2015 where freight
and passenger trains share tracks. A report published by the U.S. Government Accountability
Office (GAO) in September finds that most railroads are not able to meet the statutory deadline
Agenda Item 11
18
and an extension of the deadline is warranted. Such an extension would need likely to be
attached to a government funding bill. Metrolink has led the nation in implementation of PTC
and previously resisted calls to extend the deadline out of concern it would slow the
development of needed technologies.
State Update
The regular session of the State Legislature for 2015 has adjourned. Much of the final weeks of
session were focused on two climate change bills, SB 350 (De Leon) and SB 32 (Pavley). SB 350
was the Senate President Pro Tempore’s centerpiece legislation to implement Governor
Brown’s proclaimed State of the State goals of reducing motor fuel use by 50 percent, doubling
energy efficiency of buildings, and expansion of the California’s portfolio of renewable energy.
To achieve passage, the motor fuels reduction requirement was deleted from the bill. SB 32,
which would have extended the sunset of state’s current greenhouse gas (GHG) reduction and
set more ambitious GHG targets, did not pass the Assembly floor – although it could be called
up for a vote in early 2016. Both bills had the potential of impacting future transportation
planning and funding, as has been the case with previous climate change bills now in effect
such as AB 32 (Pavley) and SB 375 (Steinberg).
Most major transportation policy bills the Commission has been tracking have been deferred to
the 1st Extraordinary Session (“Special Session”) on Transportation, called by the Governor
earlier this year. The Special Session has not yet adjourned, meaning that legislators could be
called back to Sacramento this fall to finalize legislation related to transportation. However a
few key bills did move to the Governor’s desk during the regular session:
• AB 194 (Frazier) – Provides tolling authority to regional agencies such as the Commission
as well as Caltrans for an unlimited number of projects, governed by specific parameters
relating to revenue, public oversight, and interagency consultation;
• AB 914 (Brown) – Provides tolling authority to San Bernardino Associated Governments
(SANBAG) for projects on Interstates 10 and 15, with specific provisions requiring
cooperation between SANBAG and the Commission on I-15;
• SB 516 (Fuller) – Provides greater flexibility for the Commission to use state call box
funds to implement a broader variety of motorist aid programs;
• AB 218 (Melendez) – Authorizes Caltrans to relinquish State Route 74 to the county of
Riverside in the unincorporated area between the cities of Lake Elsinore and Perris; and
• AB 1171 (Linder) – Authorizes regional agencies such as the Commission to use the
construction manager/general contractor (CM/GC) method of procurement – another
innovative tool to reduce time and cost in delivering transportation projects.
The Commission will issue signature request letters to Governor Brown for all of the above bills.
Agenda Item 11
19
In the mean time, the Senate and Assembly are organizing a bi-partisan conference committee
to negotiate a transportation funding and policy package for the Special Session. At the time
this report was written, conferees had not been announced.
Attachment: Legislative Matrix
Agenda Item 11
20
RIVERSIDE COUNTY TRANSPORTATION COMMISSION - POSITIONS ON STATE AND FEDERAL LEGISLATION – August 2015
Legislation/
Author
Description Bill
Status
Position Date of Board
Adoption
AB 4 (Linder) This bill would bring truck weight fees back to transportation accounts and would
prohibit weight fee revenues from being transferred from the State Highway
Account to the Transportation Debt Service Fund, the Transportation Bond Direct
Payment Account, or any other fund or account for the purpose of payment of the
debt service on transportation general obligation bonds, and would also prohibit
loans of weight fee revenues to the General Fund.
In committee: Set, first hearing.
Hearing canceled at the request
of author. (April 9).
SUPPORT 3/11/15
AB 194
(Frazier) This bill provides a uniform, less-political process for tolling projects to be
reviewed and approved by the state. Today, each tolling project must be
approved via a bill in the Legislature. AB 194 provides the California
Transportation Commission (CTC) with the authority to review and approve tolling
projects, subject to specified conditions that provide for public transparency and
collaboration between state and regional governments. The most important
aspect of this bill is it rests decision-making authority over tolling projects with the
governmental entity financially responsible for the project. The bill is sponsored
by the Self-Help Counties Coalition, of which the Commission is a member.
Senate amendments concurred
in. To Engrossing and Enrolling.
(Ayes 58. Noes 20.).
(September 11).
SUPPORT 3/11/15
AB 218
(Melendez) This bill allows for the relinquishment from state to local control of State Route 74
in the area between the cities of Lake Elsinore and Perris. This bill is sponsored by
the county of Riverside and is championed by First District Supervisor and
Commissioner Kevin Jeffries.
In Assembly. Ordered to
Engrossing and Enrolling.
(September 10).
SUPPORT 3/11/15
AB 914 (Brown) AB 914 authorizes San Bernardino Associated Governments (SANBAG) to
implement tolling on Interstate 10 and Interstate 15 within the County of San
Bernardino. The bill contains language that requires cooperative agreements
between SANBAG and the Commission prior to construction commencing on
SANBAG’s I-15 project.
Senate amendments concurred
in. To Engrossing and Enrolling.
(Ayes 73. Noes 5.).
(September 11).
Assembly Rule 63 suspended.
(September 11).
SUPPORT 4/08/15
AB 1171
(Linder)
This bill authorizes the widespread use of an alternative contracting method
known as construction manager/general contractor (CM/GC) for projects not on
the state highway system. Like design-build, CM/GC offers a streamlined private
sector risk-transfer in project delivery that is capable of saving time and money on
complex transportation projects. In short, CM/GC allows a project sponsor (such
as the Commission) to enter into a preconstruction contract with a private entity
to provide services that assist in preparing a design and schedule for the project,
while reserving the option to allow that contractor to bid on the actual
construction of the project.
Enrolled and presented to the
Governor at 4p.m.
(September 16).
Ordered to Engrossing and
Enrolling. (September 3).
SUPPORT 4/08/15
21
Legislation/
Author
Description Bill
Status
Position Date of Board
Adoption
HR 2497
(Denham)
H.R. 2497 creates a program to be administered by the U.S. Secretary of
Transportation that eliminates duplicative environmental reviews and approvals of
transportation projects under state and federal laws. Importantly, the bill sets a 90-
day deadline for the Secretary to render a decision on applications for the program.
Referred to House
subcommittee on Highway and
Transit. (May 22).
Referred to House
subcommittee on Water
Resources and Environment.
(May 22).
SUPPORT Pending
SB 39 (Pavley) This bill raises the maximum number of green stickers issued by the Department of
Motor Vehicles (DMV) for plug-in hybrid vehicles, which allow those vehicles to travel
in high-occupancy vehicle (HOV) lanes regardless of the number of occupants. SB 39
raises the cap to 85,000. . This bill represents a 112 percent increase in green stickers
over a two-year period. The green sticker program expires on January 1, 2019.
In Assembly. Read first time.
Held at Desk. (May 7).
Referred to Com. On TRANS.
(May 22).
OPPOSE 6/10/15
SB 321 (Beall) This bill allows the BOE to adjust the price-based excise tax using a five-year
forecast period instead of just a one-year period, thereby reducing the impact of
short-term disruptions in fuel prices. SB 321 also extends the revenue-neutrality
requirement to cover a three-year period instead of just one year, offering
another opportunity for the BOE to smooth-out dramatic revenue swings. Finally,
the bill allows the BOE to adjust the price-based excise tax every quarter, rather
than once per year.
Ordered to inactive file on
request of Senator Beall.
(September 11).
SUPPORT 3/11/15
22