09-08-75 agendar-
CITY OF RICHrIFLD, h~iIT~hl~ES01'P,
Office of lxe~cutive D7rc:cto>°
IIRA Letter T,'o. Z3
Agenda ,~e.ptemuc:r B , 1 ~ 75
I-lous9.ng and Redeveloprnerlt
Authority Comrn?.ssion~:rs
° City of Richfield
Gent:l.erne~~:
Subject: lnform~tiorr on Potential L~Tndalc;/Hub/iVi.coi.let
. Relocation. Program
In recent discussi ens of the L/H/N ii;iprovem~.:,'nt p~~oject there have
bee,++~ a numk~er of questions raised relative to hove relocation. would work
for affected property owners ~.vi_thin the project area. The planning de-
partnl~nt has prepared a report on this subject of v,~hich a copy is attached
for tl~e i.nformai.ion of the I-1:R11 Commissi.one,:s.
i A1_so attached 9.s a tentative schedule indicating th.e timetable for
the various elements of Phase III of this project extending through the
end of the current yc;.ar.
Respectfully,~ubm7.tted,=~~j~'~~
~~1~~~ ~ ~~ ,~ 6
tiljayne S . 13urggraaff
Executive Director
WSI3/eja
a
RELOCATION PROQZANI REPORT
FOR LI-II~1 COMMERCIAL IMPROVEMENT
PROC'1RAM
Staff Report
August, 1975
i
CONTENTS
•
Relocation Objectives
Plarnling for Relocation
Business Relocation Benefits
Homeowner-Renter Relocation Benefits
Grievence Procedures
PAGE
1
1-2
3
5
10
•
~~Iinnesota Statutes 472A.12 requires the City of Richfield to provide relocation
assistance payments and services to persons and businesses displaced as a result
of any public program sponsored by the city. There are two types of relocation
t~enefits. One type of benenfit for either renter or owner occupied homes and
apartments and one type for businesses. This report will describe both type of.
benefits and the steps necessary to plan for .relocation.
~telocation Program Objective
With the i~RA's concurrance the following objectives will be accomplished in the
Richfield relocation assistance program.
1. Individual's and business's relocated shall have full opportunity to occupy
comparable replacement housing or business locations adequate to their needs.
2. Business concerns will be provided maximum assistance to aid in their satisfactory
• re-establishment with minimum Lose of earnings.
3. Relocation shall be carried out in a manner that will promote maximwn choice.
4. Relocation services will be provided to lessen displacement hardships.
5. Displacement shall only take place when it is demonstrated that sufficient
replacement housing and business locations exist.
6. People being displaced will be encouraged to participate in the development of
a relocation assistance plan and will be provided full information relating
to relocation.
7. Arrangements will be made to provide relocation assistance in accordance with
the needs. of those being displaced.
8. Relocation payments shall be made promptly.
Planning for Relocation
e A relocation assistance program must offer not only payments for relocation but also
services to help the individual or business relocation. The relocation services which
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must be planned for, include:
1. Information system to inform people in the LII~~1 commercial area.
2. Direct personal interviews to determine relocation needs of displacees.
3. Continuing price rental availability survey of comparable home sales, home
rental and business property.
4. Assist people in securing housing and SBA loans and obtaining comparable
housing and business locations.
5. Provide advisory services on housing assistance, employment, education,
health and welfare to minimize hardships of relocation.
6. Insure inspection of relocation housing.
7. Develop a grievance procedure.
In addition to planning for relocation services the ~~2A will develop:
1. Administrative coordination steps with nearby communities to assure competent
personnel will be doing relocation and to insure that other units of government
will not be using the Richfield relocation resources.
2. Staging relocation activities to conform to the commercial improvement
implementation and the availability of relocation resources.
3. "Physical occupancy standard" to be applied by the HRA in determining the
suitability of replacement housing and business location.
4. "Ability to pay standards" to insure that the replacement housing is within the
displaced persons financial means.
5. Environmental standards to insure a suitable healthy location for the displaced
person(s).
a. Resource acid assistance plan which will identify the steps to be taken to assure
the availability of relocation resources and the provision of relocation,
payments and services. Residences and businesses in the LI-1iV area must be
directly involved in the formulation of the relocation plan.
S r
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Business Relocation Benefits
Eligibility
Businesses are eligible for relocation benefits if either of th.e following
actions occur.
1. The I~tA obtain title to the property.
2. The business receives a written notice of I-~;A's intent to acquire the
property.
Relocation Payments for Moving Expenses and Personal Property Losses
Relocation payments cover verified actual moving cost and related expenses including:.
Moving Expenses
~~loving expenses include the cost of dismantling, crating,. packing, insuring,
transporting, unpacking, reassembling, reconnection and reinstallation of
personal property, merchandise, and storage costs. In some cases the costs
of alterations, or other physical changes to any structure at 'the new location
are covered.
Reimbursable costs may be incurred for fastening a machine, piece of
equipment or fixture to the interior walk, floor or ceiling of the premises,
and when functionally necessary, connecting it to electric, gas, water, sewer
or vent line. ~~4aterial and labor costs paid by the displacee for affixing
the items and running required utility lines, from a point within the space
occupied by the displacee to.the items are compensable and may be included
as part of the relocation clavn. Allotivable connection and installation expenses
include items of personal property which were disconnected and moved from
the project location.
• Relocation payments to a business are limited to the expense necessary for
moving up to 50 miles.
~ +
4-
Payment for lose of personal property.
The relocation payr~lent will cover losses from the sale of personal property,.
such as equipment, fixtures, machinery, supplies a;ld materials (including goods
held for sale), if these items of personal property are not suitable for
use at the business's new location or if the business is liquidated rather than
moved.
For the purpose of obtaining a relocation payment, property is defined as "tangible
personal property" (excluding fixtures, equipment and other real property). The
relocation payment, however, may cover such items of real property, as the site
occupant may be lawfully entitled to remove including lease holdings.
A relocation payment for such an actual direct loss of personal property will be
the lesser of the fair market value of the property for "continued use" at its
present location or the cost to be delivered to another location.
~l e •
1. Appraised Value of personal property $10,000
Proceeds from Sale (Kept by displacee) 2,000
Value not recovered 8,000
2. Estimated moving value $ 5,000
Since the value to move the direct lost items is less than the value not recovered
by sale, the estimated moving cost would be the amount of the direct loss payment in
this example. The amount of the relocation payment would be $5,000 (estirated moving
value).
Payment for Searching for a Replacement Location
A relocation payment for moving expenses may include actual reasonable expenses incurred
for searching for a replacement location up to a maximum search payment of $500.
Searching expenses may include:
1. Transportation expenses within a radius of 50 miles from Richfield at a rate of
$.12 per mile.
w ~
-5-
2. 1~leals and lodging while away from home.
3. An amount to cover the reasonable time spent in searching, not to exceed
$10.00 per hour.
4. Reasonable fees paid to real estate agent to locate a replacement location.
Payment in Lieu of 1~4oving Expenses
General
A business concern, may elect to receive a payment in lieu of moving expenses. The
payment in lieu of moving and related expenses shall be equal to .the average annual
net earnings of the business concern, but not less than $2,500 nor more than $10,000.
A displaced business may be eligible for a payment in lieu of moving and related
expenses if the following requirements are met:
. 1. The business cannot be relocated without a substantial loss of its existing
patronage.
2. The business is not part of a commercial enterprise having another establishrrient
which is not being acquired for the project, and which is engaged in the same or
similar business.
3. The business contributes materially to the income of the displaced owner.
Homeowners and Renters Relocation Benefits
A family or individual required to move as a result of property acqusi.tion by the
HRA is eligible for relocation payments to assist in obtaining as well as moving to
a replacement dwelling.
Eligibility
Renters
• To be eligible for this payment, the family or individual must have occupied the rental
unit in the acquired property for 90 days immediately prior to the date of the offer
to purchase the property by the Housing Authority.
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Nnmanum P r c
The family or individual must have owned and occupied the acquired dwelling for
180 days inunediately prior to the date of offer to purchase by the Authority.
Relocation Pa~~rnents
i~4ovin~ Expenses
The Authority will pay the actual reasonable cost of expenses for moving
personal property up to a distance of 50 mile from }Zichfield. If a move
is made beyond 50 miles, th:~ additional cost may be eligible if justification.
is provided.
In lieu of. payment for actual moving expenses, an alternative Fixed Payment
may be chosen by the family or individual. T}ie displacee may arrange a
self-move and clair:~. a Fixed Payment, up to a maximum of $300, plus a
llislocation Allowance of $200. A Fixed Payment is based on the number of
rooms of furniture and other possessions to be moved. A schedule for •
Fixed Payment amounts will be developed by the HRA.
Replacement Housing Payment for Homeowners
The purpose of the Replacement Housing Payment is to provide assistance to displaced
homeowners-occupants to purchase and occupy comparable suitable standard.. replacement
dwellings. The maximum amount of this payment is $15,000. The actual amount of t}.e
payment depends on individual circumstances as described below.
A Replacement Ilousing Payment may include a combination of three categories of
payments, but the total of all three cannot exceed $15,000. These catagories are:
1. Differential Payment
This amount represents the difference between the purchase price of the dwelli:~g
acquired by the Housing Authority and the cost of a comparable standard
replacement dwelling. There is an eighteen (18) month time limit on this •
payment.
b ~
/ -
The cost of a comparable replacement dwelling is established as a basis
for computing the amount of the differential payment. A schedule of comparable
dwelling costs is based on an analysis of standard Housing available for
sale in the City of Richfield. The schedule is periodically updated to
reflect changes in the housing market.
2. Interest Payment
This is a payment to compensate the displaced homeowner for the present
worth of any loss of favorable financing.
The interest payment may include the following:
a. Debt service costs (such as points paid by purchaser on the replacement
dwelling).
b. The discounted present value of the difference between: the amount
required to amortize the unpaid balance of the loan on the acquired
dwelling over the remaining term of that loan and, the amount which
would. be required, at the interest rate of the loan on the replacement
dwelling, to amortize the upaid balance of the-loan on the acquired
dwelling over the remaining term of that loan.
3. Incidental Expense Payment
This payment is an amount to compensate the displaced homeowner for expenses
he incurs incidental to the purchase of a replacement dwelling.
Incidental expenses are limited to reasonable costs, but not prepaid expenses,
debt service or finance charges, and include the following:
a. Legal, closing and related costs (title search, surveys, recording fees,
etc.
b. Lender, FHA or VA appraisal fees.
c. FHA or VA application fees.
d. Certification of structural soundness.
3. Credit report.
-8-
f. Owner's and mortgagee's title insurance policies or abstracts
of title.
g. Sales or transfer taxes.
h. Escrow agent's fee.
i. Other appropriate expenses as may be determined eligible.
A replacement dwelling must be inspected by a member of the ~t1tA staff to certify
that the dwelling is decent, safe and sanitary and in compliance with all local
codes and ordinances., prior to the making of any replacement payment to a
displaced person. In the case of dwellings located beyond 25 miles from the city,
an official of an appropriate local or other agency will perform the inspection.
Replacement Housing Payments for Renters
The purpose of this payment is to provide assistance to displaced families and
individuals in renting or purchasing comparable suitable standard replacement
dwellings. •
The maximum amount of this payment is X4,000 and may be either (1) a payment to
assist a displaced person in making a down pa~nnent toward the purchase of a home
or (b) a payment to assist a displaced person in the rental of a comparable
replacement housing unit. There are twelve (12) and eighteen (18) month time limits
on these payments.
Basic Computation for Displacees jti~o Rent
The amount of the rental assistance payment is computed by determining the difference
between the base monthly rental previously paid by the displaced .person (including
utilities) and TfHE LESSER OF (1) the monthly rental for a comparable replacement
dwelling (according to a HRA schedule); OR (2) the monthly gross rental actually
paid by the displacee for the dwelling to which he relocated. The difference is
then multiplied by 48. If the total amount exceeds $4,000, it must be reduced to •
X4,000. The "base monthly REP~T'AL" may not exceed 250 of the displaced person's
3 ~
i
•
•
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Irons income. 'The lesser amount is used in the computation, with the exception
of displaced individuals defined as llependents, such as full-time students.
'The total amount of the rental assistance payment is paid in one lwnp-sum.
However, as the payment is computed on the 'uasis of increased rental costs for
a period of 48 months after displacement, the displacee may request that the
payment be paid ire iitonthly or annual installments .
The reasonable cost of a comparable standard rental unit (including utilities)
is established by the Authority as a basis for computing the maxir~ium amount of
the rental assistance payment. The schedule is based on an analysis of standard
units available for rent in the City of Richfield, and is periodically updated
to reflect changes ire the rental market. In those situations where the schedule
is considered to be inadequate for determining comparability, are alternative method
may be applied in establishing the cost of comparable housing.
Payment for Renter I'dho Chose to Purchase a FIome
The amount of the benefit (not to exceed $4,000) pis based on the amount of down
paynnent treat would be required to finance a comparable replacement dwelling
wit: a conventional loan plus certain reasonable expenses incidental to closing.
~he average cost of comparable replacement housing is established as a basis ~or
computing the potential amount of the downpayment. If the displaced person
~~archases at a price less than the amount established from the schedule, then the
actual purchase price of the replacement dwelling will be used as the basis for
determining the amount of the payment.
If t;~e claim is for more than $2,000, the displacee must match dollar for dollar
the amount in excess of $2,000 up to the maximwn payment of $4,000.
For example, on a total down payment of X3,600, the Authority would pay the first
:2,000 plus one-half of the remainder, or $800, for a total claim of $2,800.
The displaced person would be required to pay the matching $800 amount.
~ !.
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The full_amouirt of the Replacement housing Pay;nent for Tenants and Certain Others
TIlUSt be applied to t11e purchase ,price and the~ayment must be shown on the •
closing statement. Incidental expenses must also be shown as paid on the closing
statement and the Truth-in-Lending Stater;rent (or other evidence of payment), before
any eligible reimbursement can be made for these expenses.
RELOCATION i3ENEFITS ARE NOT TO FSE CONSIDERED AS INCOi~
Relocation payments are not to be considered as income for Federal income tax
purposes or for determining eligibility or extent of eligibility of a person
under the Social Security Act or any other Federal law. For eligibility for
HUD-assisted housing programs, including but not limited to low-rent public
'dousing, these payments shall not be considered assets.
The State Relocation Act of 1973 provides that relocation payments are not to
be considered as income for state income tax purposes or for determining eligibility
or extent of eligibility of any person for public assistance based, on need udder
the lavas of the State of Minnesota.
GRIEVANCE PROCEDURE
The Housing Authority will establish a Grievance Procedure in order to facilitate
the review of compl2ints by persons being displaced. A grievance may be filed
pertaining to either:
(1) A determination as to eligibility for a relocation payment or the amount
of a relocation payment..
(2) The adequacy of replacement housing referred by the Housing Authority to
the displaced person.
3 ~
•
RELOCATION GRIEVANCE
Pt 0 ~ '~
NOTIFIC:ATIUi`1 - If the LIRA denies the eligibility of a claimant for pa~nnent or
disapproves the full amount claimed, or refuses to consider the claim on its
merits because of untimely filing or any other grounds, the IIi2~~'s notification
of the claimant regarding its determination shall inform the claimant of its
reasons therefore and shall also inform the claimant of the opportunity for
appealing such determinations by incorporating a copy of this procedure.
FILING OF COi~1PLAINT OR GRIEVANCE - Any claimant may request the iIRA for a written
explanation of its determination, which shall be supplied written, l5 days of
such request. A claimant may further request the opportunity to informally
acrd orally present his position prior to filing a written grievance. In any
• case, however, if a formal written complaint is to be submitted, it must be
submitted within six (6) months of the IAA's notification to the claimant
•
of its determination. The clamant may include any material in his request for
a review, felt to be relevant.
ADTIINISTRATI~~ P.ESOLLrTI0T1 - Every effort will be made upon receipt of informal or
formal grievances to resolve the problem or grievance administratively, without
a hear. ing. The 1-Il~~~ will act promptly to answer in writing such grievances and
complaints, and will attempt to a~rswer in writing such grievances within 10
working days of receipt. Responses will include the proposed disposition of the
complaint and specific reasons therefore, notice of the right of the claimant to
a Iiearir~g and a copy of this procedure if the response is not favorable to the
claimant .
HEARING REQITEST - A request for a hearing on any actions, inactions, determinations,
etc., may be made within six (6) months of notification of the document by the
iiRA of said determination as provided in Section 3 above; or prior to final
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closeout of the project causing the displacement, whichever is sooner, but in •
no event less than 21 days following the agency's notification to the claimant
of its determination.
DARING PANEL - The HRA shall appoint a Board of Appeals. Such a panel shall
consist of four or more objective citizens. In many cases the I-iRA will appoint
the Human Rights Commission as the Board of Appeals.
1IiE HEARING - Any claimant-may have his claim and the determination made by
the HRA reviewal and reconsidered by the Hearing Panel.
A. The parties shall be entitled to a fair hearing before the hearing
panel and may be represented by counsel or another person chosen as a
representative.
B. The hearing shall be public unless otherwise rec{uested by the
complainant and the Hearing Panel agrees to a private hearing. •
This should not be construed to prohibit attendance of persons
with a valid interest in the proceedings.
C: The Compainant may examine before the hearing and at his expense copy
of all documents, records and regulations of the HRA which are relevant.
The compainant may request a transcript of the hearing.
D. If a complainant fails to appear at a Hearin, the Panel may postpone
the Hearing for-five working days, or may make a determination that the
complainant has waived his 'right to the Hearing. Such a determination
shall not constitute a waiver of complainant's right to thereafter
contest the IRA's disposition of his grievance in an appropriate judicial
proceeding.
DECISIONS OF THE HEARING PANEL - Decisions of the Hearing Panel are to 'be based •
upon the following criteria:
A. All material upon which the IIFtA based its original determination,
including all applicable rules and regulations.
•
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B. All reasons presented by the claimant for requesting reconsideration
and review of his claim.
C. Whatever additional written material has been submitted by the
claimant .
I). Any further information which the HRA may obtain by request,
investigation or research to insure fair and full review of the claim.
E. The Hearing Panel shall prepare its written decision, including a
statement of findings and conclusions; as well as the reasons or basis
therefore, upon all material issues raised by t11e parties. This shall
be done within a reasonable time after the date of the hearing. Copies
thereof shall be mailed or delivered to the parties and/or their
representatives.
F. The written decision of the Hearing Panel, shall be maintained on file
by the H1tA and made available for inspection by a prospective complainant
or his representatives.
Any ~ udicial decision or related settlement pertaining to the decision
of the Hearing Panel shall also be maintained on file by the IIFtA
and made available for inspection.
G. The claimant will be promptly notified in writing of the decision
of the Hearing Panel.
•
APPEALS FROM THE HEARING PANEL DECISION - Either the claimant or the I-Il~A has the
right within 25 days to appeal the decision of the Hearing Panel, for further
review and determination. The claimant shall be informed in writing of this right
to appeal and be provided with sufficient instruction regarding procedure for
such appeal.
RIGHTS TO JUDICIAL REVIEW - Upon exhaustion of the procedures cited above, a
claimant has the right to seek judicial review.
a ~
•
/~ LOCALITY: SAINT Pt:UL, MIIvTNF.SOTA
SCii_EDLn.F.'Or A TERAG PRICES __
PROJECT ?ZUMBERS :
COP~iL't`iI7fY DsVLLOPf~:a:NT PP,OGRAM
OF COMPARABY.E RENThL
~. r1INPi. A-1-1; 2; 3; 5; 6; ~ 7
MINN. R-37 - MINN. E-2
ROiJSING IN LOCALITY - MINN. 1-21; 23; 24; & 25
y MINN. OSA-81; 113; 114; 116; 123; & 129
OSL-MNr0a-46-1014A
A. Schedule
Price Ranoe Average
Size of Unit Square Footage From To Monthly Cosh
0 Redroo~}i
Small Unit Under 350 80 128 115
24edium Unit- 350 to 450 93 145 125
Large Unit 451+ 115 165 150
1 Bedroom
Smr_,7.1 Unit Under 575 110 144 130
Meaium Unit 575 to 750 135 171 155
Large Unit 751+ 160 200 18S
2 Bedrooms ,
Small Unit Under 725 145 199 180
Medium Unit 725 to 925 165 220 190
Large Unit 926+ 183 245 215
3 Bedrooms
Small Unit Under 975 155 260 220
Medium Unit 975 to 1,175 177 275 230
Large Unit 1,176+ 200 295 255
4 Bedrooms
Small Unit _ Under 1,300 205 250 230
Medium Unit 1,300 to 1,499. 228 275 250
Large Unit 1,500+ 255 320 290
5 Bedrooms or More
Small, Medium
& Large Units * 255- 280 270
* There's neither a sufficient supply nor adequate available data upon which to base
a square footage breakdown of area ranges for purpose of this schedule.
7fc~r Tncl~,~iino gnat ~yf »ti iih~aa. ~-
• ~ i
STATE HIG'r~'AY FIXED RELOCATION PAY?~NT SCHEBLZE
MG~'ING EXPENSE SCHEDULE (Fixed Payments)
SCHEDULE A
Unfurnished Units - (Occupant Owns Furniture)
F first 2 3 4 5 b 7 8' ° 10
Room Rooms Rocros Rooms Rooms Rooms Rooms Rooms Rooms Rooms
$65
$95
$125
$150
$175
$200
$225 ..
$250 ~ $275
$300
i
LOCA::.ZTY
St. Paul, Minnesota
MA~:I;:'J'f: 5300.Oo
under each schedul
SCHEDULE B .
Furnished Units •'Includin~ Sleepi~n~ Rooms (Occupant Does. Not Own Furniture).
F?rst Room Each Additional ~• '
DISLOCATION
• ALLOnA'+;CE: An Additional $200.00 under
$25 $10 each schedule
SCHEDULE C SCHEIULE D ~
Mobile home x2rsonalty Only
Pursuant to Chapter 6, Section~•2, Item 23, Relocation Handbook 1371.1
• (Approved 8-23-71 - Effective 9-1-71)
.~
/~dogted by 1RA ZO-20-71
.files Less Than la' 20' Lass Than 12' 12' Less Than 14' 14." or Wide: Double Wid
0-IO 125 ~ 135 150 175 30C~
iG-25 130 140 155 180 330
~?_5-50 140 150 175 200 300
Use A or B, as
Appropiat~
,°
TM
F~.~i~~
.~._W___. ~..W-__.
SAIf'T PAUL, -_...__.._.___..._.___
Mti'I~ESUT!s ._....... _~.
SCIiE>}Ut,F. 0;~ At~rlt!~GB I°?Z7:CIS OF AGlaisC:k PP.OJECT P7ItIiL'L1ZS
COi~;x'AR/'..-F, LL. SAI.I:S IIGSFJSI>\G
IIOiiS?.N(: AP;D
I?. D,::i~~.LU3.'i~I~7.'
I~:Itr~: ,
A-I »l ; 2 i 3 i
5; 6;
ZN z.oC~LZ~~~X I~U~tluxr~i~Y OF xll cZ:--~=~ ak I,.i:Iv'?~, na-37 - I.1z.Iata. n-2
SATIi`i.` Pl3.UL, I~fIP?'YF.~SU~:Is FiI:I;I~T. I-2I; 23; 24; 25
S53.U1. I~I1idAi. ()SA-81; 113; 1.ljc;
a__........-,___.. ..~.~.r.. _ ......-..Y.~......... ~..,... ~
,.._~,.-.......
..~_.,...
,.. II6; 1L3; 129
- .
--_ f
S
f Tof.~l S:1uare I'oof:aga
---~-~--
ize o
Unit
i.-Si~ory-
:C~-Stories
2-Stor3.e:r~ Average Price
2 .rcdxaaros or 7..ess
Small. ULZit -~
Under 7a0
Under 825
Under 900
$21,400
Mediuc~ i7nit 750 to 949 825 to 1024. 5f)0 to 1099 23,300
•Large Unit 9501- 10?_5+ I100+ ~ 25,100
3 Tseca:ooma
Sr+all Unit
Under 1000
Uk~der 1100
Unrler 1100
25, 300
Medium 1000 to II99 1100 to 1299 1200 to 1399 27,700
barge 1200+ 130.0-F~ 1400.1- 29, 600.
4 Redroorns
Sma11 unit
Under.I300
Under 1350
Uader 1400
26,800
Aiedium Unit 1300 L-o 1599 1350 to 1649 1400 to 1699 27,100 N~
Large Unit 1600+ 1650+ 1700+ 29,500
5 Redrovms or tare
Sma11 Unit _..__
Unc;er 1500
Under 1550.
Under. 1600
27, 000
tiediurn Unit 1500 to 1799 1550 to 1849 1600 to 1x99 28,500
Large Unit 18001 18501- 19001- 32, 000
J
i
Effective 10/7/74
"SCITEDULE B"