HomeMy WebLinkAbout1995-02-14 - AGENDA REPORTS - COMMUTER RAIL TRAIL (2)AGENDA REPORT
CONSENT CALENDAR
DATE: February 14, 1995
City Manager Approv
Item to be presented
Rick Putn a 1
SUBJECT: Chuck Pontius Commuter Rail Trail - Project No. 99-029
Relocation Assistance
DEPARTMENT: Parks, Recreation, and Community Services
BACKGROUND
On November 8, 1994, the City Council authorized the acquisition of the master leasehold
interests of the property commonly known as 21340 Soledad Canyon Road as part of the
Chuck Pontius Commuter Rail Trail. This essentially placed the City in the position of
landlord of the property., Three businesses were in operation at this location: Comfortubs,
Down and Under, and Far West Rent-A-Car.
At the November 8, 1994 meeting, the City Council also authorized staff to proceed with
relocation assistance of these businesses, the eligibility of which is mandated by State law.
Businesses are allowed 18 months in which to file claims for relocation assistance.
Due to the special nature of relocation assistance, and its implications required under State
law, the City entered into a contract with Pacific Relocation Consultants to assist with this
effort. As an initial estimate of costs, and in order to proceed as expeditiously as possible,
the following encumbrances were established: $10,000 for Comfortubs, $20,000 for Down and
Under, and $18,950 for Pacific Relocation Consultants. Due to a number of factors, budget
was reserved in the project for relocation assistance for Far West Rent-A-Car, but no
encumbrance was established..
The majority of relocation assistance costs have been identified for Comfortubs and for Down
and Under, and staff expects to receive a "Final Claim" for these businesses in the near
future. Eligible costs under State law for Comfortubs are expected to exceed the initial
$10,000 estimate by approximately $2,500; for Down and Under, costs are expected to exceed
the initial $20,000 estimate by between $5,000 to $9,000. Since these costs are all mandated
by State law, and since businesses are allowed 18 months in which to file claims for
relocation assistance, staff recommends increasing the initial encumbrances for these
businesses by $10,000 and $15,000 respectively. Although it is highly unlikely that the entire
additional amount will be required, staff strongly suggests that a conservative amount be
encumbered for this purpose.
appROED� Item: 9
Chuck Pontius Commuter Rail Trail - Project No. 99-029
Relocation Assistance
February 14, 1995
Page 2
The need for additional assistance from Pacific Relocation Consultants is somewhat less clear.
Approximately $18,500 has been expended to date, and the majority of Pacific Relocation's
work is completed. However, additional assistance may be required, especially in the area
of loss of goodwill, should negotiations with Far West Rent-A-Car become extended.
Staff recommends that it is prudent at this time to encumber an additional $35,000 for this
purpose. Again, although it is highly unlikely that the entire additional amount will be
required, staff strongly suggests that a conservative amount be encumbered.
Funds for this purpose are budgeted to be allocated from the current 17-99029-227 project
account.,
RECOMMENDATION
The City Council authorize additional encumbrances of $10,000, $15,000, and $35,000 for
Comfortubs, Down and Under, and Pacific Relocation Consultants, respectively.
REP:KN.dis
council/agcrtkn