{00111812 1}ACTION:
____________________________
Clerk/Secretary
Department: City Attorney Item No: C07
Prepared by: Walter Chung, City Attorney Meeting Date: September 26, 2023 Approved by: John Conley, City Manager Agenda Location: Consent Calendar SUBJECT: AMEND CITY COUNCIL POLICY 600-10, PROCEDURES FOR ESTABLISHING JUST
COMPENSATION FOR THE PURCHASE BY NEGOTIATION OF REAL PROPERTY RECOMMENDATION: Adopt City Council Resolution No. 2023- , amending City Council Policy 600-10, Procedures for Establishing Just Compensation for the Purchase by Negotiation of Real Property.
CORRELATION TO CITY COUNCIL GOALS: Routine operational item not directly corresponding to a specific City Council goal.
PRIOR ACTIONS: On December 8, 2009, adopted City Council Resolution No. 2009-197, amending City Council Policy 600-10 (made non-substantive grammatical changes to the policy) (Vote: 5-0).
On March 11, 2003, adopted City Council Resolution No. 2003-58, enacting City Council Policy Number 600-10, Establishing Procedures for Determining Just Compensation for Properties with Low Market Value (Vote: 4-0, Ritter absent).
STATEMENT ON THE SUBJECT: City Council Policy 600-10 is vague with regard to whether the policy applies to all real property purchases. For example, the title to the policy only references real property purchases with low fair market values. In order to remove any ambiguities, City Council Policy 600-10 is being amended to clearly reflect that the City Council does require an appraisal be conducted for all real property acquisitions other than real property acquisitions with a low fair market value.
FISCAL IMPACT: None.
EXHIBITS:
1.City Council Resolution No. 2023- , amending City Council Policy 600-10, Procedures for Establishing Just Compensation for the Purchase by Negotiation of Real Property
2.A redline version of City Council Policy 600-10, Procedures for Establishing Just Compensation for the Purchase by Negotiation of Real Property, as amended
3.City Council Policy 600-10, Procedures for Establishing Just Compensation for the Purchase by Negotiation of Real Property, as amended
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Approved above recommendation, adopted City Council Resolution No. 2023-166.
Vote: 5-0.
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RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF VISTA, CALIFORNIA, AMENDING CITY COUNCIL POLICY 600-10,
PROCEDURES FOR ESTABLISHING JUST COMPENSATION FOR THE
PURCHASE BY NEGOTIATION OF REAL PROPERTY
The City Council of the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A.In 2003, the City Council adopted City Council 600-10, Procedures for Establishing Just Compensation for the Purchase by Negotiation of Real Property.
B.The City Council wishes to make clear that it does require an appraisal be conducted for all real property acquisitions other than real property acquisitions with a low fair market value.
2. Action.
A.City Council Policy 600-10, Procedures for Establishing Just Compensation for the Purchase by Negotiation of Real Property, is amended.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on September 26, 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
APPROVED
Walter C. Chung
20230913134048
JOHN FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
09/26/2023 C07 2 of 8
EXHIBIT 1
Vista City Council Policy
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600-10 PROCEDURES FOR ESTABLISHING JUST COMPENSATION
FOR THE PURCHASE BY NEGOTIATION OF REAL PROPERTY
WITH A LOW FAIR MARKET VALUE
PURPOSE
To set forth general procedures for determining just compensation for the purchase by negotiation of real property with a low fair market value. California Government Code 7267.1(b) requires public entities to have an appraisal prepared for real property it intends to acquire prior to the initiation of negotiations. A public entity may prescribe a procedure to waive the appraisal requirement in cases involving the acquisition by sale or donation of property with a low fair market value. In the event, negotiations for the purchase of real property are unsuccessful, an appraisal will be necessary if the City desires to acquire the property by eminent domain.
POLICY
The City Council hereby establishes a policy requiring an appraisal be prepared for the City for real property it is considering acquiring unless the real property has a low fair market value. For low fair market value real property, the City Council authorizes the City Manager to determine just compensation pursuant to this policy for the purchase by negotiation of property with a low fair market value. The City Manager’s authority under this policy may not be delegated to any other person.
1. Definitions
a.“Determination of Just Compensation” is a report documenting the support used to determine the amount of just compensation to be paid to the property owner. It is not an appraisal. b.“Fair Market Value” means the value of the property acquired is 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 obligated 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 fair market value of the property acquired for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable.
c.“Low Fair Market Value,” for the purpose of this policy, shall mean property whose estimated value is $25,000 or less. 09/26/2023 C07 3 of 8
EXHIBIT 2
Vista City Council Policy
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d.“Severance damages” may apply in those cases when the property acquired is part of a larger parcel and the remainder parcel is damaged by the taking. Severance damages mean a monetary damage caused to the remaining property by its severance from the part acquired by the City.
2. Procedures - General
a. An appraisal is not required if the City Manager determines the valuation of the property is uncomplicated and the fair market value is established at $25,000 or less based on a review of available data.
b. In determining whether the property is uncomplicated, the City Manager shall consider and include in the City Manager’s Determination of Just Compensation the following criteria:
(1) There is no question as to the highest and best use. (2) Adequate market data is available.
(3) Severance or other damages are not present.
(4) There is no substantial decrease in market value due to the presence of hazardous waste material.
If the City Manager determines that the property is complicated or the value of the property to be acquired exceeds $25,000, an appraisal will beis required before purchase of the property. c.In determining the fair market value of the property, the City Manager shall base his/her opinion on available relevant data, including, but not limited to:
(1) Comparable sales or listing data.
(2) Sales data already in the City’s files.
(3)Opinions of the Assessor’s Office appraisers or real estate brokers.
(4) Other cost sources.
09/26/2023 C07 4 of 8
Vista City Council Policy
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The Documentation of Just Compensation shall include all data used to arrive at the City Manager’s determination of fair market value.
d. The contents of the Determination of Just Compensation shall include the following:
(1) Parcel Summary Page outlining all of the relevant facts regarding the property to be acquired.
(2) Photograph(s) of the subject property.
(3) Diagram of the subject property showing the dimensions of the property.
(4) Location of property on City map showing the relative location of the property.
(5) Documentation showing property is uncomplicated.
(6) Data supporting fair market value determination.
e. The City Manager shall complete the Determination for Just Compensation process prior to initiating any negotiations with the property owner.
HISTORY
Adopted March 11, 2003
Amended December 8, 2009, City Council Resolution No. 2009-197 Amended September 26, 2023, City Council Resolution No. 2023- 09/26/2023 C07 5 of 8
Vista City Council Policy
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600-10 PROCEDURES FOR ESTABLISHING JUST COMPENSATION
FOR THE PURCHASE BY NEGOTIATION OF REAL PROPERTY
PURPOSE
To set forth general procedures for determining just compensation for the purchase by negotiation of real property.
POLICY
The City Council hereby establishes a policy requiring an appraisal be prepared for the City for real property it is considering acquiring unless the real property has a low fair market value. For low fair market value real property, the City Council authorizes the City Manager to determine just compensation pursuant to this policy. The City Manager’s authority under this policy may not be delegated to any other person.
1. Definitions
a.“Determination of Just Compensation” is a report documenting the support used to determine the amount of just compensation to be paid to the property owner. It is not an appraisal. b.“Fair Market Value” means the value of the property acquired is 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 obligated 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 fair market value of the property acquired for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable.
c.“Low Fair Market Value,” for the purpose of this policy, shall mean property whose estimated value is $25,000 or less. d.“Severance damages” may apply in those cases when the property acquired is part of a larger parcel and the remainder parcel is damaged by the taking. Severance damages mean a monetary damage caused to the remaining property by its severance from the part acquired by the City.
09/26/2023 C07 6 of 8
EXHIBIT 3
Vista City Council Policy
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2. Procedures - General
a.An appraisal is not required if the City Manager determines the valuation of the property is uncomplicated and the fair market value is established at $25,000 or less based on a review of available data.
b. In determining whether the property is uncomplicated, the City Manager shall consider and include in the City Manager’s Determination of Just Compensation the following criteria:
(1) There is no question as to the highest and best use. (2) Adequate market data is available.
(3) Severance or other damages are not present.
(4) There is no substantial decrease in market value due to the presence of hazardous waste material.
If the City Manager determines that the property is complicated or the value of the property to be acquired exceeds $25,000, an appraisal is required before purchase of the property.
c. In determining the fair market value of the property, the City Manager shall base his/her opinion on available relevant data, including, but not limited to:
(1) Comparable sales or listing data.
(2) Sales data already in the City’s files.
(3) Opinions of the Assessor’s Office appraisers or real estate brokers.
(4) Other cost sources.
The Documentation of Just Compensation shall include all data used to arrive at the City Manager’s determination of fair market value.
d. The contents of the Determination of Just Compensation shall include the following:
(1) Parcel Summary Page outlining all the relevant facts regarding the property to be acquired.
09/26/2023 C07 7 of 8
Vista City Council Policy
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(2) Photograph(s) of the subject property.
(3) Diagram of the subject property showing the dimensions of the property.
(4) Location of property on City map showing the relative location of the property.
(5) Documentation showing property is uncomplicated.
(6) Data supporting fair market value determination.
e. The City Manager shall complete the Determination for Just Compensation process prior to initiating any negotiations with the property owner.
HISTORY
Adopted March 11, 2003
Amended December 8, 2009, City Council Resolution No. 2009-197 Amended September 26, 2023, City Council Resolution No. 2023- 09/26/2023 C07 8 of 8