OHIO DEPARTMENT OF TRANSPORTATION OFFICE OF REAL ESTATE
DATE: August 27, 2015
TO: Users of the Real Estate Manual
FROM: James J. Viau, Manager, Relocation Section
RE: Changes and Updates to the Real Estate Manual
The only current and accurate source of ODOT’s Real Estate Manual is on the Office of Real Estate’s website. This site is located at: www.dot.state.oh.us/Divisions/Engineering /RealEstate/. Desired information can be accessed by scrolling down the left hand column and selecting “Manuals.” Specific information can be selected by clicking on the desired manual section.
The Real Estate Manual is ever evolving, as procedures are subject to revision and change. Individuals or firms providing relocation services on federal or state funded projects must perform these services in compliance with the most current policies and procedures. Individuals utilizing a hard copy version of the manual, without accessing the website for updates, risks providing non-compliant services to our displacees. Therefore, all users must only use those manual sections contained on our website. ODOT will provide notice of manual changes on the Design Reference Resource Center (DRRC) web page. Users of the manual can access this page and subscribe to be made aware of manual changes via e-mail notification. Then, when changes to the manual occur, ODOT will provide direct notice to the subscriber. This page can be accessed at
http://www.dot.state.oh.us/DRRC. Scroll down to “Real Estate Policies and Procedures Manual” and select the desired section for updates, or enter your e-mail address to subscribe for changes. It is the user’s responsibility to maintain their most current e-mail address on the DRRC notification system. The DRRC web site is updated four times annually.
The Office of Real Estate may also provide additional guidance to its procedures by Inter-Office Communications (IOC’s). These communications will be made a part of the Real Estate Manual and will be found in the Addenda of each section of the manual.
Table of Contents
6500 - NON-RESIDENTIAL RELOCATION BENEFITS ... 65-1
6501
GENERAL ... 65-1
6501.01 Actual, Reasonable, and Necessary ... 65-1
6501.02 Classification of Relocation Moves ... 65-1
6501.03 Responsibilities of the Displaced Business ... 65-2
6502
Eligible Moving Expenses - Non-Residential ... 65-3
6502.01 Transportation of personal property ... 65-3
6502.02 Packing, crating, unpacking, and uncrating of the personal property
... 65-3
6502.03 Disconnecting, dismantling, removing, reassembling, and
reinstalling relocated personal property ... 65-3
6502.04 Insurance for the Move ... 65-4
6503
Other Eligible Expenses ... 65-4
6503.01 Storage of the personal property ... 65-4
6503.02 The replacement value of property lost, stolen, or damaged in the
process of moving. ... 65-5
6503.03 Any license, permit, fee or certification required of the Displaced
Person at the replacement location. ... 65-5
6503.04 Professional Services ... 65-6
6503.05 Re-lettering and Re-printing ... 65-7
6503.06 Direct Loss ... 65-7
6503.07 Substitute Equipment ... 65-9
6503.08 Search Expense ... 65-10
6503.09 Supervision of the Move ... 65-11
6503.10 Overtime ... 65-12
6503.11 Leased Equipment ... 65-12
6503.12 Pits, Pads and Foundations ... 65-12
6503.13 Connection to Utilities at the Right of Way ... 65-13
6503.14 Impact Fees ... 65-13
6503.15 Low Value/High Bulk ... 65-13
6503.16 On-Premise Signs ... 65-14
6503.17 Other Moving Expenses ... 65-15
6504
Ineligible Moving and Related Expenses ... 65-15
6505
Types of Move ... 65-16
6506
Contract Move ... 65-16
6506.01 Contract Move Defined ... 65-16
6506.02 Responsibilities of Relocation Agent - Non-Residential Contract
Move ... 65-16
6506.03 Inventory – (Non-Residential Contract Moves) ... 65-17
6506.04 Move Specifications – (Non-Residential Contract Move) ... 65-18
6506.05 Move Bids – (Non-Residential Contract Move) ... 65-19
6506.06 Move Authorization Letter – (Non-Residential Contract Move) ...
... 65-20
6506.07 Monitoring the Move – (Non-Residential Contract Move) ... 65-21
6506.08 Post-move Inspection – (Non-Residential Contract Move)... 65-21
6506.09 Billing Package – (Non-Residential Contract Move) ... 65-21
6506.10 Move Reimbursement – (Non-Residential Contract Move) .... 65-22
6506.11 Delivery of the Warrant – (Non-Residential Contract Move) . 65-22
6507
Self-Move – (Non-Residential) ... 65-23
6507.01 Self-Move Defined ... 65-23
6507.02 Responsibilities of the Relocation Agent - Non-Residential
Self-Move ... 65-23
6507.03 Inventory - Non-Residential Self-Moves ... 65-24
6507.04 Move Specifications - Non-Residential Self-Move ... 65-25
6507.05 Move Bids - Non-Residential Self-Move ... 65-26
6507.06 Agreement for Bidders Services (RE-614) ... 65-27
6507.07 Move Authorization Letter - Non-Residential Self-Move... 65-28
6507.08 Monitoring the Move - Non-Residential Self Move... 65-29
6507.09 Billing Package - Non-Residential Self-Move ... 65-29
6507.10 Post-move Inspection - Non-Residential Self-Move ... 65-30
6507.11 Bids Not Obtainable ... 65-30
6508
Reestablishment Expenses ... 65-31
6508.01 Eligible Reestablishment Expenses ... 65-31
6508.02 Ineligible Reestablishment Expenses ... 65-33
6508.03 Responsibilities of the Relocation Agent - Reestablishment
Expenses ... 65-34
6508.04 Contents of Billing Package - Reestablishment Expenses ... 65-34
6509
Fixed Payment for Moving Expenses-Non-Residential ... 65-35
6509.01 Eligibility - Non-Residential Fixed Payment... 65-35
6509.02 Responsibilities of the Relocation Agent - Fixed Payment ... 65-36
6509.03 Determining the Number of Businesses ... 65-37
6509.04 Non-Residential Fixed Payment Calculation ... 65-37
6509.05 Minimum Payment ... 65-38
6509.06 Move Authorization letter- Fixed Payment Non-Residential
Move ... 65-39
6509.07 Farm Operation – Fixed Payment Non-Residential Move ... 65-39
6509.08 Non-Profit Organization - Non-Residential Fixed Payment ... 65-39
6509.09 Billing Package - Non-Residential Fixed Payment ... 65-40
6510
Loss of Goodwill ... 65-41
6510.01 Eligibility for Loss of Goodwill ... 65-41
6510.02 Claiming a Loss of Goodwill ... 65-42
6510.03 Time for Filing ... 65-43
6510.04 Evaluation of Claims for Loss of Goodwill ... 65-44
6510.05 Appropriation and Claims for Loss of Goodwill ... 65-44
6510.06 Responsibilities of the Relocation Agent... 65-44
6510.07 Loss of Goodwill and Fixed Payments for Businesses ... 65-45
6511
Economic Loss ... 65-45
6511.01 Limit of Economic Loss ... 65-45
6511.02 Eligibility for Reimbursement of Economic Loss ... 65-46
6511.03 Time Period For Calculating the Maximum Amount That a
Business may be Reimbursed for Economic Loss. ... 65-46
6511.04 15 Day Time Period May Be Extended ... 65-47
6511.05 Calculating the Maximum Reimbursement Payment for
Economic Loss ... 65-47
6511.06 Claiming Economic Loss ... 65-48
6511.07 Economic Loss cannot be a Duplication of Payments ... 65-48
6511.08 Evaluation of Claims for Economic Loss ... 65-48
6511.09 Time for Filing ... 65-49
6511.10 Responsibilities of the Relocation Agent... 65-49
6511.11 Economic Loss and Fixed Payments for Businesses ... 65-49
6512
Personal Property Moves ... 65-49
6512.01 Forms and Notices for Personal Property Moves ... 65-50
6512.02 Types of Personal Property Moves ... 65-50
6512.03 Billing Packages for Personal Property Moves ... 65-50
6513
Personal Property Self-Move - Fixed Schedule ... 65-51
6513.01 Eligibility for a Fixed Schedule Self-Move ... 65-51
6513.02 Reimbursement Calculation - Fixed Schedule Self-Move ... 65-51
6513.03 Responsibilities of the Agent - Fixed Schedule Self-Move .... 65-52
6514
Personal Property Move Cost Finding Self-Move ... 65-53
6514.01 Move Cost Finding – Personal Property Move ... 65-53
6514.02 Responsibilities of the Agent - Personal Property Move Cost
Finding Self-Move ... 65-54
6515
Personal Property Self-Move Based on Bids ... 65-55
6515.01 Responsibilities of the Agent - Personal Property Self-Move Based
on Bids ... 65-55
6516
Personal Property Contract Move ... 65-56
6516.01 Responsibilities of the Agent - Personal Property Contract Move
... 65-56
6517
Delivery of the Warrant - Non-Residential Move ... 65-57
6500 - NON-RESIDENTIAL RELOCATION
BENEFITS
6501
GENERAL
This chapter discusses moving and other payments for businesses, non-profit organizations, farms, and personal property only moves.
6501.01
Actual, Reasonable, and Necessary
A. 49 CFR 24.301(a)(1) states that:(a) General. (1) Any owner-occupant or tenant who qualifies as a Displaced Person (defined at §24.2(a)(9)) and who moves from a
dwelling (including a mobile home) or who moves from a business, farm or non-profit organization is entitled to payment of his or her actual moving and related expenses, as the Agency determines to be reasonable and necessary.
B. All moving expenses must be actual, reasonable and necessary.
1. Actual Costs - These costs exist in fact or reality. These are costs which are truly
incurred. They are not potential costs. These costs can be proven with a receipt, canceled check or other documentation.
2. Reasonable Costs - These costs are not extreme or excessive. They reflect what is usual and customary in the market place.
3. Necessary Costs - These costs are caused by the highway project. They are of an
inevitable nature and logically unavoidable. If the Displaced Person would have incurred the costs in the absence of the highway project, those costs would not be considered necessary for relocation purposes.
6501.02
Classification of Relocation Moves
All moves can be classified in one of three ways. Each of these move types has its own policies and procedures which must be followed. It is important to understand which type of move is involved in each displacement.
A. Residential Moves - A Residential move is one where the Displaced Person must move from their primary dwelling. In this type of move, the Displaced Person will receive reimbursement for the move of their personal property. In addition to the move, the
Displaced Person is eligible to receive a replacement housing payment and advisory services. This type of move is discussed in Section 6400.
B. Non-Residential Move - A Residential move is one where a business, farm, or non-profit organization is displaced from their location of operation. In this type of move, the displaced company will receive reimbursement for the move of their personal property. In addition to the move, they are eligible to receive up to $25,000.00 to reestablish their operation in a new location as well as advisory services. They may also elect to receive a fixed payment of up to $40,000.00 in lieu of receiving move, search, economic loss and reestablishment expenses. This type of move is discussed in this section.
C. Personal Property Moves - A personal property move is one where the Displaced Person must move personal property from the proposed right of way acquisition area. On a
personal property move, a person is not being displaced from their home, farm or business. In this type of move, the Displaced Person receives reimbursement for the move of their personal property as well as advisory services. This type of move is discussed later in this section.
6501.03
Responsibilities of the Displaced Business
A. 49 CFR part 24.301(i) relates to a Displaced Persons’ eligibility for payments under this section, and states:
(i) Notification and inspection (non-Residential). The Agency shall inform the Displaced Person, in writing, of the requirements of this section as soon as possible after the initiation of negotiations. This information may be included in the relocation information provided the Displaced Person as set forth in §24.203. To be eligible for payments under this section the Displaced Person must:
(1) Provide the Agency reasonable advance notice of the approximate date of the start of the move or disposition of the personal property and an inventory of the items to be moved. However, the Agency may waive this notice requirement after documenting its file accordingly.
(2) Permit the Agency to make reasonable and timely inspections of the personal property at both the displacement and replacement sites and to monitor the move.
B. The Displaced Person shall be informed of this requirement in writing via their offer letter and it shall be the Relocation Agent’s responsibility to maintain communication with the Displaced Person throughout the relocation process.
6502
Eligible Moving Expenses - Non-Residential
The following expenses are eligible for reimbursement for moving personal property by persons displaced from a Business, Farm or Non-profit Organization. The expenses in this section are those that are usually included in a typical move bid. Other eligible expenses are listed in Section 6503.
6502.01
Transportation of personal property
Transportation costs for up to 50 miles are reimbursable. If a Displaced Person moves beyond 50 miles, the first 50 miles is reimbursed and the Displaced Person must pay for any additional miles. All move bids and the invoice must break out the cost for the first 50 miles and any subsequent mileage. In rare instances, costs beyond 50 miles may be eligible if relocation beyond 50 miles is justified. For example, zoning requirements or a need for specific rail access may require relocation outside of a 50 mile radius. Any costs for transportation beyond 50 miles must be preapproved by the ODOT Central Office Relocation Section Manager.
6502.02
Packing, crating, unpacking, and uncrating of the personal property
This includes packing all personal property in boxes, loading the boxes onto the truck, unloading the boxes, and unpacking the boxes at the replacement site. All necessary packing materials are also eligible for reimbursement.6502.03
Disconnecting, dismantling, removing, reassembling, and reinstalling
relocated personal property
This would include machinery, equipment, substitute personal property, and connections to utilities available within the building. It also includes modifications to the personal property, including those mandated by Federal, State or local law, code or ordinance, modifications necessary to adapt it to the replacement structure, the replacement site, or the utilities at the replacement site. In addition, the Agency may provide modifications necessary to adapt the utilities at the replacement site to the personal property. This may include:
A. Connection to utilities available within the building; the Agency can pay the cost to connect or hook up any item of machinery & equipment (M&E), or other personal
property, from the piece of equipment to the nearest available utility connection, but only to the extent the utility services were required at the displacement site. This connection might be an outlet located nearby or a subpanel located some distance away that is necessary for a particular piece of equipment to function at the replacement site.
1. The cost of installing typical service connections is not an allowable expense such as: Utility Distribution Centers (water meters, gas meters, and main electrical service panels), perimeter and overhead electrical outlets for lighting and power,
normal gas or water lines. These in-place service connections are real property improvements and the values associated with them become part of the real estate. They may be eligible, however, as reestablishment expenses of up to $25,000 (see Section 6508).
B. Modifications to personal property necessary to adapt it to the replacement structure, the replacement site, or the utilities at the replacement site; Examples of ways to adapt either the M&E, or the power supply, include new motors, transformers, rectifiers, and similar equipment necessary to accomplish the required conversion.
C. Modifications necessary to adapt utilities at the replacement site to the personal property; Examples of alternative power supplies include conversion from direct current to
alternating current, from three (3)-phase to single-phase, from 440 volts to 220 volts, or from one heat source to another (e.g., from bottled or natural gas to electricity). Except in unusual circumstances, actual payment shall be limited to the least expensive alternative; that is, the cost to adapt the M&E to available utilities or to provide compatible utilities to the relocated M&E.
D. Modifications to real property at the replacement site necessary to permit the reinstalled personal property to function properly and according to code; Examples would include installing new “kill switches” or barriers to allow the relocated machinery to meet current code requirements.
Such costs are not applicable to items classified as real property acquired in the acquisition process and retained by the owner. Reasonable and necessary will remain the determining criteria for all eligible costs.
6502.04
Insurance for the Move
Insurance for the replacement value of the personal property is eligible for reimbursement in connection with the move, and if necessary, storage. Full replacement value insurance would typically include a reference to zero deductibles. It is the responsibility of the Relocation Agent to ensure that the mover includes the cost of full replacement value insurance in all move bids.
6503
Other Eligible Expenses
This section describes other eligible moving expenses which the displaced business may be entitled to.
6503.01
Storage of the personal property
Based upon need, authorization to utilize storage must be granted by the District Real Estate
Administrator prior to being offered to the Displaced Person. All storage costs must be necessary as they relate to the relocation of the business. All storage costs are subject to the following limitations:
A. The duration of the storage will only be for the time necessary for the Displaced Person to complete their relocation. The maximum amount of time that may be reimbursed is 12 months, unless it is determined that a longer period is necessary;
B. A Displaced Person may not be reimbursed for storage on property which is owned or has been previously leased by the Displaced Person;
C. Only current stock and equipment as inventoried (including stock and equipment on order prior to the move), is eligible for storage.
A memo or e-mail requesting storage authorization, including an estimate of the period of time the storage is needed, the cost of the storage, and why the storage is necessary, shall be forwarded to the District Real Estate Administrator prior to any commitment to the Displaced Person. The Displaced Person shall be notified in writing by the Relocation Agent of the Agency’s decision regarding their request for the use of storage.
6503.02
The replacement value of property lost, stolen, or damaged in the
process of moving.
A displaced business is eligible to be reimbursed for reasonable replacement value of any property lost, stolen, or damaged in the moving process (not through the fault or negligence of the Displaced Person, his or her Agent, or employees) where insurance covering such loss, theft or damage is not readily available. It is important that any uninsurable personal property is identified in the move specifications. The file must contain documentation that reasonable efforts to secure insurance were attempted prior to move authorization.
6503.03
Any license, permit, fee or certification required of the Displaced
Person at the replacement location.
Any license, fee, permit or certification required of the displaced business at the replacement location is eligible for reimbursement as an actual cost item. If there was an existing license, permit or
certification at the displacement site, the actual reimbursement will be limited to the value of the remaining useful life of the license, permit or certification.
For example:
A business acquires a permit in 2008. The permit’s cost is $1,000.00 and its duration is 5 years. The Agency acquires the property in 2011. The permit cannot be transferred and therefore another 5 year permit must be acquired for the replacement site. The reimbursement is for the remaining life (two years) and thus would be limited to $400.00, based on the remaining useful life of the old permit.
6503.04
Professional Services
With prior approval from the District Real Estate Administrator, the use of professional services may be a reimbursable cost. Professional services would include the hiring of experts, consultants, or specialists to assist in evaluating the suitability of a potential replacement location or to plan the move of personal property.
It is very important that prior to the Displaced Person engaging a person or firm to provide
professional services that a scope is agreed upon. It is the Relocation Agent’s responsibility, working in conjunction with the displaced business, to create the scope of services. When requesting approval from the District Real Estate Administrator, the following information must be provided:
Name and qualifications of the professional;
Scope of services to be performed;
Agreed upon reasonable hourly rate or flat fee, as appropriate;
Agreed upon maximum number of hours to be billed.
A. The use of Professional Services as it relates to the evaluation of a potential replacement site:
If necessary, professional services may be reimbursed if performed prior to the purchase or lease of a replacement site to evaluate its suitability for the displaced business operation including, but not limited to, soil testing, feasibility and/or marketing studies (excluding any fees or commissions directly related to the purchase or lease of such site).
Professional services must be performed prior to the purchase of the replacement site to be eligible for reimbursement. To be reimbursable, the purchase of a replacement property must be contingent on a favorable result of the test(s) or study. For example, a light manufacturing company wants to build a new building on vacant land. The displaced business signs a contract to purchase the replacement site contingent upon a positive result of a soil analysis to determine if the needed structures can be built on the site. The cost of the soil analysis would be reimbursable as long as prior approval for the use of the professional service provider was obtained from the District Real Estate Administrator.
B. The use of Professional services as it relates to moving personal property:
If necessary, the use of professional services is reimbursable for planning the move of the personal property, moving the personal property, and installing the relocated personal property at the replacement location.
On most moves, the business owner or manager will have the expertise to plan and manage the move. However, on very large and/or complex moves, it may be necessary to hire a professional to assist in the moving process.
Examples of professional services which may be reimbursed include trade experts to plan layouts of merchandise, process engineers to plan installation of machinery and equipment, plumbers or electricians to install machinery and equipment, or special technicians to calibrate complex machinery. Again, the use of Professional Services must always be preapproved by the District Real Estate Administrator.
In addition, per 49 CFR, Part 24 – Non-Regulatory Supplements Subpart D – Payments for Moving and Related Expenses "Plant Layout" as an Eligible Expense - Plant layout is an eligible expense with regard to both a move into a newly constructed building or into a preexisting building. These expenses are limited to rudimentary items, such as indicating the locations in the replacement building to which personal property is to be moved, and are related to "planning the move of personal property" from the displacement site to the replacement site. The final decision of whether to hire a move cost planner rests with the Agency. Eligible expenses do not include architectural or engineering-type drawings, concepts, or considerations at the replacement site, nor do they include plans, drawings, layouts, or other material related to the site acquired by the acquiring agency. Further, such expenses are not to be considered as "professional services" under the provisions of 49 CFR, Part 24.303(b).
6503.05
Re-lettering and Re-printing
The actual, reasonable, and necessary cost of re-lettering signs, changing telephone book entries, replacing stationery and business cards on hand that are made obsolete due to displacement are reimbursable. Likewise, the actual, reasonable and necessary costs for updating company websites to reflect the replacement address and changed contact information is reimbursable.
The reimbursement for re-printing is based only on the amount of stock on hand at the time of displacement. The amount of stock on hand is determined by completing an inventory just prior to the actual move. The pending move must have rendered the items obsolete due to a change in address or phone number of the business. The amount of the reimbursement shall be established by the lower of two estimates. If an estimate is under $500, and it is found to be reasonable, only one estimate is necessary.
If the stock on hand is low at the time of the move, and the printer’s customary minimum printing order exceeds the inventory, then reimbursement shall be based on the cost of the minimum printing run. For example, if the company has 150 envelopes on hand, and the printer requires a minimum order of 500, then the Agency shall reimburse the cost for 500 new envelopes.
The cost of re-lettering signs on mobile equipment and other personal property of the Displaced Person is also reimbursable, but only to the extent that the message is affected by the move.
6503.06
Direct Loss
When a business, farm operation, or non-profit organization is entitled to relocate its personal property but chooses not to do so, the direct loss of the personal property is reimbursable. Direct loss
may be applied to individual items of personal property or to the entire inventory. Payment may only be made after an effort is made by the owner to sell the items involved, unless the Relocation
Reviewer concurs that this is not necessary.
Below are three examples where direct loss reimbursement may apply:
A printing company has a printing press which is not in use because its technology is outdated and the press has been replaced by more modern equipment. The company may be reimbursed for direct loss on this piece of equipment.
A restaurant owner decides to retire instead of relocating and reestablishing her business. She may be reimbursed for direct loss on all of the restaurant’s personal property.
A large equipment dealer who sells construction equipment such as earth movers and cranes may decide that instead of moving his stock he will have a “moving sale.” If he sells the items for less than the wholesale cost for which he purchased the item(s), he may be eligible for direct loss reimbursement.
Bills of sale or similar documents must support wholesale prices and selling prices. A. Calculation of the Direct Loss Reimbursement
If an item of personal property is not moved and not replaced with a substitute item, the owner is entitled to payment for the lesser of;
2. The fair market value in place of the item, as is, for continued use, less proceeds from its sale. To be eligible for payment, the claimant must make a good faith effort to sell the personal property, unless the Relocation Reviewer and District Real Estate Administrator confirm that such effort is not necessary. When direct loss is claimed for goods held for sale, the in-place value shall be based on the cost of the goods to the business (usually the wholesale price of the goods), not the potential selling price; or
3. The estimated cost of moving the item as is, but not including any allowance for storage; or for reconnecting a piece of equipment if the equipment is in storage or not being used at the acquired site. If the business or farm operation is discontinued, the estimated cost of moving the item shall be based on a moving distance of 50 miles.
The fair market value in place of the item must be documented. On items with a large value, it may be necessary for the Agency to contract with a machinery and equipment appraiser. Other sources for fair market value in place may include used equipment dealers and auction houses.
The cost of selling an item which is not moved but is reimbursed under direct loss is eligible for reimbursement. Such costs may include newspaper or internet advertisements, an advertisement in a trade publication or the cost of holding a public auction.
All items that will not be relocated to the replacement site shall be identified on the inventory and bid specifications. The move bids must break out the cost of moving these items.
Example of direct loss calculation:
Fair market value in place of a commercial oven $300
Minus proceeds from sale $25
Total $275
Cost to move oven $150
Reimbursement is lesser of value in place minus sale ($275) or cost to move ($150), in this case the Displaced Person would be eligible for a maximum reimbursement of $150. A Displaced Person may make a claim for Direct Loss or Substitute Equipment, but not both on an item of personal property. If no bona fide effort to sell is made when determined necessary by the Agency, and the property is abandoned, the owner of the property is not entitled to payment for move costs or Direct Loss.
In typical Direct Loss claims the Displaced Person is still required to remove the abandoned property and the cost for removal of abandoned personal will not be paid by the Agency as an eligible move cost payment. Alternatively, upon the District Real Estate Administrator’s approval, the displacee shall transfer ownership to the Department of any personal property that has not been moved, sold or traded.
6503.07
Substitute Equipment
If an item of personal property, which is used as part of a business or farm operation, is not moved but is promptly replaced with a substitute item that performs a comparable function at the
replacement site, the owner is entitled to payment for the lesser of: Calculation of Substitute Equipment Reimbursement
1. The cost of the substitute item, including installation at the replacement site, minus any proceeds from the sale or trade-in of the replaced item. To be eligible for payment, the claimant must make a good faith effort to sell the personal property, unless the Relocation Reviewer and District Real Estate Administrator confirm that such effort is not necessary; or
2. The estimated cost of moving and reinstalling the replaced item, based on the lowest acceptable move bid with no allowance for storage.
The substitute item must perform a comparable function but without any betterment. If the item is replaced with a better item, the cost of a comparable item must be used in the calculation. For example, if a two door pizza oven is not moved but is replaced with a new, larger oven with four doors, the cost of a new two door oven shall be used in the calculation.
The cost of selling an item which is not moved but is reimbursed under substitute equipment is eligible for reimbursement. Such costs may include newspaper or internet advertisements, an advertisement in a trade publication or the cost of holding a public auction.
All items that will not be relocated to the replacement site shall be identified on the inventory and bid specifications. The move bids must break out the cost of moving these items.
Example of Substitute Equipment Reimbursement:
Cost of substitute high speed printer $12,000
Plus cost to install 1,000
Total $13,000 Subtract the proceeds of Trade-In 1,800 Total $11,200 Cost to move and install printer $2,500
Reimbursement is lesser of cost of the substitute equipment, plus installation, minus proceeds from sale or trade in ($11,200), or cost to move and install ($2,500); in this case the Displaced Person would be eligible for a maximum reimbursement of $2,500.
A Displaced Person may make a claim for Direct Loss or Substitute Equipment, but not both on an item of personal property. If no bona fide effort to sell is made when determined necessary by the Agency, and the property is abandoned, the owner of the property is not entitled to payment for move costs or Substitute Equipment.
In typical Substitute Equipment claims the Displaced Person is still required to remove the
abandoned property and the cost for removal of abandoned personal property will not be paid by the Agency as an eligible move cost payment. Alternatively, upon the District Real Estate
Administrator’s approval, the displacee shall transfer ownership to the Department of any personal property that has not been moved, sold or traded.
6503.08
Search Expense
The owner of a displaced business, farm operation, or non-profit organization is entitled to be reimbursed for actual costs, not to exceed $2,500, incurred in searching for a replacement site. Reimbursement may include the cost of:
A. Transportation expense at a mileage rate not to exceed the current rate established by the Internal Revenue Service for business mileage deductions;
B. Reasonable expenses for meals and lodging while away from home, if necessary; C. Time spent in searching, based on reasonable salary or earnings. Documentation of
reasonable salary or earnings must be provided by the Displaced Person and approved by the Agency;
D. Fees paid to a real estate agent or broker to locate a replacement site, exclusive of any fees or commissions related to purchase of such site;
E. Time spent in obtaining permits and attending zoning hearings, based on reasonable salary or earnings;
F. Time spent negotiating the purchase of a replacement site based on reasonable salary or earnings;
The amount claimed must be supported by receipted invoices except for the mileage and time. The Search form (RE-618) is provided for the itemization of time, mileage, etc.
At the relocation offer, the Displaced Person shall be given the Form RE-618 and instructed on how to complete it. As part of the instructions, the Displaced Person shall be informed that only trips to visit currently available properties are reimbursable and that it is necessary to identify on the form the person(s) contacted in conjunction with each visit.
The search period is normally limited to that period between the initiation of negotiations for the parcel and the date a replacement site is acquired. The specific circumstances surrounding a parcel may warrant extension of the search period to a date prior to the initiation of negotiations. If such extension is necessary, it is the Relocation Agent’s responsibility to obtain approval from the District Real Estate Administrator. The displaced business should then be advised, by letter, that they are eligible for search expenses but that they are not eligible for any other relocation benefits until the initiation of negotiations. Even though search costs may be incurred by the displaced business prior to the initiation of negotiations the Agency cannot reimburse (or release a warrant to) the business for any search costs incurred until after the business qualifies as a displaced business. Acquisition of a replacement site shall mean the date on which the closing for the replacement property occurs or when a lease for a property is executed by all the parties.
6503.09
Supervision of the Move
If the Relocation Agent, with concurrence from the District Real Estate Administrator, considers it a necessary cost, the displaced business may be reimbursed for labor to supervise the move. The labor expenses include the time spent by the owner or employees of the business supervising the move. In order to receive reimbursement for supervisory services all of the following must take place:
A. The Relocation Agent, with concurrence from the Relocation Reviewer, must agree that it is necessary for the Displaced Person to provide supervisory services for the move because of the nature of the move or the uniqueness of the personal property to be moved. Additionally, the Agent and Reviewer must agree that the mover is incapable of providing this service.
B. The scope of the supervision is included in the moving specifications. The scope shall include:
1. Supervisory wage rates that are agreed upon prior to the move. If the person acting as the supervisor is the owner or an employee, the company will be reimbursed the current wage rate without overhead, or the current customary rate for commercial moving supervision, whichever is less.
2. The amount of supervision (or number of hours) shall be agreed upon prior to the move. At no time shall the amount of supervision exceed the total hours of the move.
C. The Displaced Person will keep a log of the supervisory hours utilized for the move, which, at a minimum, will list the supervisor’s name and the number of hours worked each day. It is a best practice to have the supervisor include a brief description of which part of the move they supervised in each daily log entry. The log will also be signed and verified as accurate by the individual preparing it.
6503.10
Overtime
All wages paid for the move shall be normal wages with no allowances for “time and a half” or other overtime unless the Agency determines that a night or weekend move is necessary and reasonable for the business. Any reimbursement for overtime must be discussed in advance and approved by the District Real Estate Administrator. An example of when overtime may be necessary would be if a retail business, in an effort to minimize disruption to the business, wishes to move on a Sunday when they are normally closed.
6503.11
Leased Equipment
A relocation payment for moving expenses may include the cost of disconnecting and reinstalling leased equipment such as telephones, computer systems, propane tanks, vending machines, and similar items of personal property which are movable. If the system cannot be simply relocated to the replacement site, reinstallation costs are limited to the costs necessary to install a similar system with no increase in capacity (see substitute equipment, Section 6503.07). Move and reinstallation costs will be reimbursed only if the lease or contract states that a cost to remove the equipment or personal property would be charged to the Displaced Person. It is the Displaced Person’s
responsibility to contact the owner of the leased equipment and request the removal of the
equipment/personal property. If the third party requests reimbursement, a copy of the lease/contract must be obtained and reviewed to determine if the costs for removal of the personal property are to be paid by the displaced business owner or the third party.
Note: It is very important that the RE-95 and inventory correctly identify all leased items.
6503.12
Pits, Pads and Foundations
The costs of pits, pads, and foundations at the replacement site can only be reimbursed as an eligible moving cost if they are necessary for the reinstallation of personal property such as equipment or machinery. The cost of the pits, pads, and foundations are not reimbursable if the
value of such items were clearly included in the just compensation paid for the real property at the displacement site.
Normally, pits, pads, and foundations only add value to a property for a particular business operation and would not generally enhance real property. They should not be included in the valuation of the real property unless the highest and best use of the property being acquired is for the specific business operation for which it is being used and the fair market value is determined on this basis. In any event, the appraisal must be reviewed to determine if the value of the pits, pads, and foundations were included in the acquisition offer.
6503.13
Connection to Utilities at the Right of Way
Any reimbursement for connection to utilities at the right of way must be determined necessary by the Relocation Agent with concurrence from District Real Estate Administrator.
When a business relocates to an existing building and it is determined necessary for the operation of the personal property used by the business, a displaced business is eligible to be reimbursed for the connection costs to nearby utilities from the right of way to improvements at the replacement site.
If the business chooses to construct a new facility, the cost to connect utilities from the building to the right-of-way are only eligible if it can be demonstrated that personal property used by the business requires utility hookups that are truly unique, as typical utility connections for new construction are considered capital assets and are not reimbursable.
All reimbursements for connecting utilities must be documented to be reasonable and necessary. If a contractor (such as a plumber to run a gas line) is used and the cost is over $2,500.00, two bids shall be secured, otherwise a single bid is acceptable.
The cost of installing a well or a septic system is a capital improvement and thus is not reimbursable.
The cost for extending utilities along Right of Way lines or through easements on adjoining properties in order for the utility to access the displacement site are not eligible for reimbursement.
6503.14
Impact Fees
Displaced businesses may be reimbursed for impact fees or one time assessments for anticipated heavy utility usage, as determined necessary by the Relocation Agent with concurrence from the District Real Estate Administrator.
6503.15
Low Value/High Bulk
or non-profit organization that the Agency determines would cost more to move than to replace. Some examples of low value/high bulk materials would include, stock-piled sand or gravel, etc. The application of the low value/high bulk provision is at the Agency's discretion. The Agency should only use this provision if it is willing to accept ownership and the ultimate cleanup costs of the material. Any decision to accept ownership on ODOT projects must have the written approval of the District Real Estate Administrator.
If an Agency determines the cost to move personal property is disproportionate to the property's value, and they are willing to take ownership of the material, the move cost payment shall not exceed the lesser of the value of the property or the cost to move it. The value of the property will be the lesser of: The amount that would be received if the property was sold on site, or the replacement cost for a comparable amount of material delivered to the replacement site.
If the Agency requires the material to be moved, this provision shall not be used.
6503.16
On-Premise Signs
On-premise advertising signs are typically classified as Realty and paid for in the acquisition of the parcel. Any Realty purchased by the Agency is not eligible for a relocation payment, even if the owner salvages back the property and chooses to move it. However, there may be instances where an on-premise sign is deemed “copyrighted,” “trademarked,” “logo” or a “trade fixture” and the owner is bound by a franchise or other agreement to not sell the sign faces or structure. In these rare occasions, an owner would be eligible for a relocation payment to move the sign. In these instances, the Relocation Agent must work closely with the Acquisition Agent to ensure that the sign is properly classified as Personalty, and further, that the sign is not valued in the appraisal as Realty nor paid for in the acquisition process. If the sign was incorrectly valued as Realty in the appraisal, the Relocation Agent must bring it to the attention of the District Real Estate
Administrator so the Fair Market Value Estimate can be revised before the Agency agrees to move the sign.
Ideally, copyrighted/trademarked signs will be properly identified during the preparation of the RE-95, Property Inventory Classification Form. If the Displaced Person states that their franchise agreement does not allow them to sell their trademarked sign faces, the Agent is to secure a copy of the agreement that sets forth this condition. Alternatively, when encountering a corporate owned sign, a letter from the company setting forth why they cannot sell the sign would be sufficient. The agreement or letter will be maintained in the file to document the decision to relocate the sign. A sign designated as personal property at the displacement site is eligible to be moved and
reinstalled as a moving expense. As more fully explained at Section 6503.05, signs that can be re-lettered or otherwise modified due to the move can be claimed as a moving expense. Relocation benefits for signs include actual reasonable moving expenses, as approved by the Relocation Reviewer, and may include costs for the installation of a new base and electrical wiring necessary to operate the sign. These expenses may be claimed in the same manner as a regular business move using the non-residential move claim forms.
As more fully explained at Section 6508.01(c), erection of on-premise signs that were not deemed Personalty, and thus ineligible for relocation move benefits, can generally be claimed as a
reestablishment expense up to the maximum benefit.
Outdoor Advertising Devices (Billboards) are not considered on-premise signs and will not be eligible for moving or reestablishment benefits. All billboards will be acquired through the acquisition process.
6503.17
Other Moving Expenses
Other moving-related expenses that are not listed as ineligible under Section 6503 or 6504 of this manual, that are determined to be reasonable and necessary, may be eligible for reimbursement. Any move reimbursement under this provision must have prior approval from the Central Office Relocation Section Manager.
6504
Ineligible Moving and Related Expenses
As stated in 49 CFR 24.301(h) and OAC 5501:2-5-03(A)(6), a Displaced Person is not entitled to payment for:
A. The cost of moving any structure or other real property improvement in which the Displaced Person reserves ownership. This includes moving any real property the owner purchased back from the Agency via a Salvage Agreement (RE-68).
B. Interest on a loan to cover moving expenses;
C. Loss of profits (except for those specifically called for in Section 6511); D. Loss of trained employees;
E. Any additional operating expenses of a business or farm operation incurred because of operating in a new location except as provided under reestablishment expenses in Section 6508;
F. Personal injury;
G. Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Agency;
H. Physical changes to the real property at the replacement location of a business or farm operation except as provided under reestablishment expenses in section 6508;
I. Costs for storage of personal property on real property already owned or leased by the Displaced Person; and
J. Refundable security and utility deposits.
6505
Types of Move
A business, farm, or non-profit organization has the option of selecting a Contract Move (Section 6506), a Self-Move (Section 6507), or a Fixed Payment for Moving Expenses, also known as the “In Lieu of Payment” (Section 6509).
The move options shall be completely explained by the Relocation Agent at the pre-acquisition survey and again at the time of the relocation offer. It should also be explained that the Displaced Person may choose the method by which the personal property will be moved.
It may be practical for a combination of moving options to be utilized on an individual parcel.
6506
Contract Move
6506.01
Contract Move Defined
A Contract Move is one where the move is accomplished by a commercial moving company under contract with the Displaced Person.
6506.02
Responsibilities of Relocation Agent - Non-Residential Contract Move
After it has been determined that a Displaced Person is eligible for relocation assistance and has been provided with the Non-Residential Offer Letter (see Section 6303), the Relocation Agent is responsible for the following actions relative to the Non-Residential Contract Move.A. Explaining the move options to the Displaced Person and ensuring they understand all the move options before they select a Contract Move. The move options include the Fixed Payment, Contract Move or Self-Move. The Agent must explain that upon completion of the move, the Displaced Person is responsible to pay the mover and then to present the paid invoice to the Agency for reimbursement, or, with prior agreement, the Agency may pay the mover directly by way of a Letter of Assignment. The Agent must also explain the responsibilities of the Displaced Person (see Section 6501.03). B. Explaining to the displaced business that they are eligible for reimbursement of
reestablishment expenses not to exceed $25,000.00 (see Section 6508).
C. With the assistance of the Displaced Person, the Relocation Agent must prepare an Inventory of Personal Property (RE-613-1).
D. Preparing move specifications and obtaining approval from the Relocation Reviewer. Present the specifications to the Displaced Person for their review, approval and
signature prior to securing move bids.
E. Explaining to the Displaced Person that, before they move, a maximum reimbursable move amount must be approved.
F. Securing at least two moving bids from reputable moving companies, or one move bid plus the displaced businesses bid, if acceptable.
G. Explaining to the Displaced Person that they may obtain move bids and present them to the Agency for review and possible use as one of the move bids.
H. The Relocation Agent must review all bids for reasonableness. The approved move bid sets the maximum amount that the Agency may reimburse for the move. Prior to communicating any bid approval, the Relocation Agent must obtain approval on the move bid amount from the Relocation Reviewer.
I. Sending a Move Authorization letter to the displaced business. J. Monitoring the Move.
K. Performing the post-move inspection.
L. Upon receiving the move invoice, complete the Non-Residential Claim Form (RE-617-1) and submit the billing package to the Relocation Reviewer for approval.
M. After receiving approval on the Non-Residential Claim Form (RE-617-1), present the claim form to the Displaced Person for signature. Once signed, immediately submit the billing package for processing of the warrant.
N. Delivering the move reimbursement check and documenting its receipt.
6506.03
Inventory – (Non-Residential Contract Moves)
A. The Inventory of Personal Property (RE-613-1) is to be used on non-residential
displacements. However, use of this actual form is not required as long as the inventory obtained is labeled as “RE-613-1” and it identifies the CRS, PID, parcel number, business name, displacement site address and the replacement site address (when known). For example, the Agent could use an existing personal property inventory provided by the displaced business, but it is the responsibility of the Agent to verify the accuracy of the inventory provided by the displaced business. Regardless of what form the inventory takes, it shall be certified correct by both the Displaced Person and the Relocation Agent by signing and dating the inventory.
B. An inventory of personal property should be prepared jointly by the Relocation Agent and the Displaced Person. However, it is the responsibility of the Agent to insure that an
inventory is properly prepared. On large moves, a plant/site layout should be included with the inventory. Major items of personal property shall be photographed and cataloged in the inventory.
C. The inventory shall identify those items which will not be moved but which will be disposed of in some other manner. An item which is not moved to the replacement site may be reimbursed under Actual Direct Loss (Section 6503.06), Substitute Equipment (Section 6503.07), or, with the District Real Estate Administrator’s prior approval, abandoned. Also included shall be those items which are on order, and the shipment of which cannot be delayed until after the move has been completed.
D. In the case of a fluctuating inventory, which may significantly change prior to the move, the inventory shall be updated just prior to the move. In addition, the move specification shall address the fluctuating inventory so that the move bids can be adjusted to reflect any changes in the inventory.
E. The inventory shall be compared with the RE-95 and the appraisal to ensure the proper classification of all Realty vs. Personalty and to identify any ownership issues.
6506.04
Move Specifications – (Non-Residential Contract Move)
A. Move specifications shall be prepared on all Contract Moves. They shall be prepared by the Relocation Agent with input from the displaced business.
B. Move specifications are detailed instructions on how the move is to be performed. The specifications will serve as a basis for the preparation of the moving bids. They serve as clarification as to how certain items of Personalty will be moved and in what order the move is to be accomplished. Well-prepared moving specifications will ensure that all bidders are basing their bids on the same information. Move specifications also serve as an agreement on the details of the move between the displaced business and the Agency C. The specifications shall include the timing and order of move. They should state that the
move will be performed during normal business hours with no overtime, unless prior approval for weekend or evening moves is provided by the District Real Estate Administrator.
D. The specifications shall explain that the cost of insurance for the replacement value of the personal property (Section 6502.04) shall be included as part of the moving bid.
E. The specifications should reference the approved inventory. If it is anticipated that the inventory will fluctuate prior to the move, the specifications should state that the bidder must prepare their bid so that it may be adjusted immediately prior to the move to reflect any change in inventory.
F. The specifications must include the total scope of work to be performed, and where appropriate, must be subdivided to reflect specific responsibilities for each trade or craft that will perform a separate category of service in the move (e.g., carpenters, plumbers, electricians, etc.).
G. The specifications shall include a breakdown of work necessary to relocate each specific item of personal property. Such breakdown would include the sequence of events which are anticipated (e.g., disconnect, load, transport, unload, reset and reconnect). The specifications should clearly identify disconnection points for personal property to be moved. Normally, disconnection of machinery, etc., occurs at the nearest joint or connection to the machine and includes all "kill switches" for the machine. When machinery leveling, calibration or purging is required because of the nature of the equipment involved, it must be addressed in the move specifications and be part of the move cost estimate.
H. The move specifications shall be submitted to and approved by the Relocation Reviewer and then the Displaced Person prior to obtaining move bids.
6506.05
Move Bids – (Non-Residential Contract Move)
A. Two move bids are required on all Non-Residential Contract Moves. The Relocation Agent is responsible for obtaining the bids from reputable moving companies. Given that the movers are competitively bidding on performing the move, the Agency should not pay for these bids.
B. Move specifications shall be provided and explained to the moving companies who will be providing bids. The Relocation Agent shall accompany the moving companies to inspect the displacement site. With prior written approval from the Relocation Reviewer,
accompaniment may not be required on an uncomplicated low cost move. The replacement site should also be inspected, as necessary. It is preferable to have
representatives of the moving companies inspect the displacement site simultaneously to insure that communication is consistent between all parties. It is also advisable to have a representative of the displaced business accompany the moving companies as they make their inspections to provide additional information about any special handling or
reconnections that must occur as part of the move.
C. The Displaced Person may obtain a move bid and present it to the Agency for review as to the reasonableness of the cost. If the bid is found to be complete and satisfactory, it may be used as one of the required bids.
D. The Relocation Agent will review the bids for completeness and reasonableness. If both bids are deemed satisfactory, the low bid will be selected as the approved bid. If the low bid is not selected as the approved bid, the Relocation Agent will prepare a memo to file that explains why the low bid was considered unacceptable. If there is a large gap in the amount of the bids, or one bid is considered to be incomplete, then a third bid shall be
obtained. The Relocation Reviewer shall concur with the approved bid prior to the Displaced Person being notified of the amount.
E. The approved move bid sets the maximum amount that the Agency may reimburse for the move. The Displaced Person may select any mover, however, if the Displaced Person selects a mover other than the mover with the low bid, the Agency will only reimburse up to the amount of the low bid or the amount of the invoice from the mover who performed the move, whichever is less. This must be clearly explained to the Displaced Person. F. If the final invoice is more than the approved bid because of unforeseen changes in the
condition of the move that were not readily apparent or the fault of the Displaced Person or the mover, the Agency may reimburse the higher amount upon approval from the District Real Estate Administrator. The conditions which caused the higher costs must be
documented in a memo to file. Corrections or errors on the part of the mover or move bidder which are not the result of unforeseen changes in the move conditions will not be reimbursed by the Agency.
G. On low-cost moves, only one moving bid is required. A low-cost move is defined as under $2,500.00. Even though the moving bid is under $2,500.00, it still must be reasonable, and receive approval by the Relocation Reviewer. If the one bid is not considered reasonable a second bid shall be secured.
6506.06
Move Authorization Letter – (Non-Residential Contract Move)
After the Relocation Reviewer approves the maximum amount of the move, based on the accepted move estimate, a Move Authorization Letter shall be sent to the Displaced Person. The letter shall clearly state the following:
A. The approved maximum amount of the move;
B. The agreed upon date by which the move will be completed; C. That the Agent will monitor the move, as applicable;
D. That it is the responsibility of the Displaced Person to notify the Agent when the move is completed;
E. That the Agent will perform a post-move inspection to ensure all personal property is moved;
F. That all personal property will be moved according to the inventory and move specifications, and that if they are not, the agreed upon amount of the move may be reduced;
G. That if all items are not moved and the displacement site is not "broom clean," then the agreed upon amount of the move may be reduced.
6506.07
Monitoring the Move – (Non-Residential Contract Move)
It is the Relocation Agent’s responsibility to monitor the move. The Agent should know when the contractor is scheduled to begin the move and when the move is to be completed. Based on the complexity of the move, a site visit (or visits) might be necessary to confirm that the move is being performed according to the move specifications and to identify and/or verify any unforeseen circumstances.
6506.08
Post-move Inspection – (Non-Residential Contract Move)
A post-move inspection is required on all moves. It is a requirement that all items of personal property be moved. In addition, all trash and rubbish should be removed and disposed of in a proper manner. The displacement site shall be "broom clean." It is the Agent’s responsibility to communicate these requirements to the Displaced Person. A move reimbursement check shall not be released to the Displaced Person until after a successful post-move inspection.
6506.09
Billing Package – (Non-Residential Contract Move)
A. Once the final invoice has been received, the Relocation Agent shall immediately prepare the billing package. The complete billing package must be approved by the Relocation Reviewer prior to the Non-Residential Claim Form (RE-617-1) being presented to the Displaced Person for signature. The contents of the billing package for a Non-Residential Contract Move are:
1. One copy of the W-9 and Vendor Information Form (VIF), as applicable. 2. Original Non-Residential Claim (RE-617-1).
3. One copy of the Non-Residential Site Occupant Qualification Record (RE-610-1). 4. One copy of the Non-Residential Relocation Offer Letter.
5. One copy of the Inventory Classification (RE-95).
6. One copy of the certified Personal Property Inventory (RE-613-1). 7. One copy of the Move Specifications.
8. One copy of the qualified mover’s invoice (signed and dated), and one copy of proof of payment, if applicable.
9. One copy of moving bids obtained by the Agency or the Displaced Person. 10. One copy of the Letter of Assignment when the payment is going to a party other
than the displaced business. The assignment letter must be signed and dated by both the Displaced Person and the assignee. The assignee's Tax ID number or social security number must appear on the form. In addition, a W-9 & VIF must be obtained from the assignee and included in the billing package.
11. One copy of the Move Authorization Letter. 12. One copy of the Agent's notes (must be typed).
13. One copy of any miscellaneous documentation or memos to file in support of the payment, as applicable.
6506.10
Move Reimbursement – (Non-Residential Contract Move)
On a Non-Residential Contract Move, the displaced business has two options for being reimbursed for the move. The displaced business may be reimbursed directly or may assign payment to the mover. It is important for the Agent to explain, and for the displaced business to fully understand, that the move contract is always between the mover and the displaced business. The Agency is never to contract with the mover.A. Displaced Person is reimbursed directly - Upon completion of the move and after completing a successful post-move inspection, the displaced business will pay the mover and then present proof of payment to the Agent for reimbursement. Proof of payment shall be an invoice marked "paid in full" and signed by the mover. In the absence of a paid invoice, a copy of the invoice and a canceled check will suffice.
B. Displaced Person assigns payment - Upon prior agreement, the Agency may pay the mover directly. To use this method, a Letter of Assignment must be completed and submitted with the billing package. The Letter of Assignment must be signed by the Displaced Person and the mover. The Displaced Person must sign the Non-Residential Claim Form (RE-617-1). In addition, the mover must sign and submit a W-9 and Vendor Information Form. The warrant will be issued in the mover’s name.
6506.11
Delivery of the Warrant – (Non-Residential Contract Move)
The delivery of warrants shall be properly documented. This may be accomplished by one of two methods.A. Hand delivering the warrant personally to the Displaced Person or moving contractor. The warrant shall be photocopied and the Displaced Person shall sign and date the photocopy noting that the warrant was received.
B. A warrant may be mailed to a Displaced Person or moving contractor, along with a letter explaining the purpose of the warrant. This shall be done by certified mail, return receipt requested. The return receipt shall be placed in the relocation file.
6507
Self-Move – (Non-Residential)
6507.01
Self-Move Defined
A Self-Move is when a displaced business chooses to take full responsibility for all or part of the move of the business, non-profit organization or farm operation and accomplishes the move using their own personnel and equipment. Any additional personnel or equipment that is required to accomplish the move can be contracted for separately by the displaced business and will not change the type of move. Reimbursement for moving expenses will be based on the lowest acceptable bid obtained by the Agency.
6507.02
Responsibilities of the Relocation Agent - Non-Residential Self-Move
After it has been determined that a Displaced Person is eligible for relocation assistance andhas been provided a Non-Residential Offer Letter, the Relocation Agent is responsible for the following actions relative to the Non-Residential Self-Move.
A. Explaining the move options to the Displaced Person and ensuring that they understand all the move options before they choose the Self-Move. The move options include the Fixed Payment, Contract Move or Self-Move. The Agent shall also explain the responsibilities of the Displaced Person (see Section 6501.03).
B. Explaining to the displaced business that they are eligible for reimbursement of reestablishment expenses not to exceed $25,000.00 (see Section 6508).
C. With the assistance of the Displaced Person, the Relocation Agent is to prepare an Inventory of Personal Property (RE-613-1).
D. Preparing move specifications and obtaining approval from the Relocation Reviewer. Present the move specifications to the Displaced Person for review and signature prior to securing move bids.
E. Explaining to the Displaced Person that before they move, an approved move amount must be agreed to.
F. Explaining to the Displaced Person that they may obtain move bids and present them to the Agency for review and possible use as one of the move bids.
G. Securing at least two moving bids from reputable moving companies (or one move bid plus the displaced business’s bid, if found acceptable). When securing bids for the Agency, the Agent must negotiate and execute an Agreement for Bidders Services (RE-614) with each bidder. If bidders cannot be secured due to the nature of the business see Section 6507.11: Bids not Attainable. If the total move cost is anticipated to be less than $2,500.00,
a move cost finding (Section 6514) prepared by a qualified Relocation Agent may be utilized.
H. Reviewing all bids for reasonableness, and obtaining approval of the move bid amount from the Relocation Reviewer. The approved move bid, less state sales tax, sets the maximum amount that the Agency may reimburse for the move.
I. Sending a Move Authorization Letter to the displaced business.
J. Approximately 30 days prior to the commencement of the move, the Relocation Agent must complete the Non-Residential Claim Form and submit the billing package to the Relocation Reviewer for approval. This step is taken so that upon a successful post-move inspection the warrant can be delivered to the displaced business.
K. After receiving approval on the Non-Residential Claim Form (RE-617-1) present the claim form to the Displaced Person for signature. Once their signature is secured, immediately submit the billing package for processing of the warrant.
L. Monitoring the move.
M. Performing the post-move inspection.
N. After a successful post-move inspection, deliver the move reimbursement check and document its receipt.
6507.03
Inventory - Non-Residential Self-Moves
A. The Inventory of Personal Property Form (RE-613-1) is provided for the inventory of personal property for non-residential displacements. However, use of the actual form is not required as long as the inventory obtained is labeled as the “RE 613-1” and it identifies the CRS, PID, parcel number, business name, displacement site address and the replacement site address (when known). The inventory shall be certified correct by both the Displaced Person and the Relocation Agent by signing and dating the inventory.
B. An inventory of personal property should be prepared jointly by the Relocation Agent and the Displaced Person. However, it is the responsibility of the Agent to ensure that an inventory is prepared. On large moves, a plant/site layout should be included with the inventory. Major items of Personalty shall be photographed and cataloged on the inventory.
C. The inventory shall identify those items that will not be moved and will be disposed of in some other manner. An item that is not moved to the replacement site may be reimbursed under Actual Direct Loss (Section 6503.06), Substitute Equipment (Section 6503.07) or with the District Real Estate Administrator’s prior approval, abandoned in place. If the item is to be abandoned, the displaced business cannot be reimbursed for any moving expenses
associated with that item. On ODOT projects, items cannot be abandoned without written permission from the District Real Estate Administrator. Also included in the inventory shall be those items which are on order, the shipment of which cannot be delayed until after the move.
D. In the case of a fluctuating inventory, which may significantly change prior to the move, the inventory shall be updated just prior to the move. In addition, the move specifications shall address the fluctuating inventory so that the move bids can be adjusted to reflect any changes in the inventory prior to the move.
E. The inventory shall be compared with the RE-95 and the appraisal to ensure the proper classification of Realty vs. Personalty and to identify any ownership issues.
6507.04
Move Specifications - Non-Residential Self-Move
A. Move specifications shall be prepared on all Self-Moves. They shall be prepared by the Relocation Agent with input from the displaced business.
B. Move specifications are detailed instructions on how the move is to be performed. The specifications serve as the basis for the preparation of move bids. They serve as
clarification on how certain items of personal property will be moved and in what order the move is to be accomplished. Well prepared move specifications ensure that all bidders are basing their bid prices on the same information. Move specifications also serve as an agreement between the displaced business and the Agency as to the details of the move. C. The specifications shall include the timing and order of the move. They should state that the move will be performed during normal business hours with no overtime unless prior approval for weekend or evening moves provided by the District Real Estate
Administrator.
D. The specifications shall explain that the cost of insurance (section 6502.04) shall be included as part of the move bid.
E. The specifications should reference the approved and agreed upon inventory. If it is anticipated that the inventory will fluctuate prior to the move, the specifications should state that the bidder should prepare his bid so that it may be adjusted to reflect the changing inventory immediately prior to the move.
F. The specifications must include the total scope of work to be performed and where appropriate, must be subdivided to reflect specific responsibilities for each trade or craft that will perform a separate category