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City of Santa Ana November 25, 2020 Page 2 been taken from him."People ex rel Dep't Pub. Works v. Lynbar, Inc.(1967) 253 Cal.App.2d 870, 880. In this instance, theCity's pre-condemnation offer is invalid insofar as it was based on an artificially low valuation of the property interests to be acquired from the Subject Property. The City's offer, dated July 9, 2020, was for the amount of $354,000.But there are several inadequacies in that offer. First, the offer is woefully inadequate in recognizing the curative measuresthat must be made to the Subject Property to mitigate damages caused by the Project. The only "cost to cure" element in the City's offer is for the restriping of the parking lot at a cost of $13,225. Wells Fargo and the City have been working together for several years now regarding what curative measures are necessary, and through this process the City is aware that there are far more curative measures required. For example,because the Project entails the permanent closure of the driveway on Warner Avenueclosest to the intersection, the Drive-Through ATMs will need to be relocated to another portion of the Subject Property.This is necessary because currently theDrive-Through ATMs are located in a manner such that vehicles using those Drive-Through ATMs exit the Subject Property via the driveway that will be permanently closed and will have no safe way to exit unless those Drive-Through ATMs are relocated.Relatedly, the canopies covering the Drive-Through ATMs will need to be relocated.Further, hardscaping and landscaping will need to be done as part of this redesign, the cost of which have not been included in the City's offer. Still another large omission from the City's offer is the cost associated with the relocation of the electrical transformer that is necessitated by the Project.Southern California Edison will do this relocation work, and has informed Wells Fargo that it, as owner of the Subject Property, must contract with and pay Southern California Edison for the cost of this transformer relocation.The cost related to the relocation of the transformer is clearly caused by the Project, yet the City's offer does not reflect any compensation for this cost.Wells Fargo has brought this issue to the attention of the City, but the City has not increased its offer to account for this additional cost. 2.The City Failed To Make All Reasonable Efforts To Acquire The Subject Property Pursuant To Government Code Section 7267.1. Government Code section 7267.1 imposes an affirmative obligation on a public entity seeking to condemn property to seek to acquire that property first by negotiation. Johnston v. Sonoma County Agricultural Preservation & Open Space Dist.(2002) 100 Cal.App.4th 973, 988."The public entity shall make every reasonable effort to acquire expeditiously real property by negotiation."(Gov. Code, § 7267.1, subd. (a).) The duty to negotiate is designed to avoid litigation. "In order to encourage and expedite the acquisition of real property by agreements with owners, to avoid litigation and relieve congestion in the courts, to assure consistent treatment forowners in the public programs, and to promote public confidence in public land acquisition practices, public entities shall, to the