HomeMy WebLinkAbout4.03 Surplus Real Prop Sale
CITY CLERK
File # D~[7][l2]-[IJ[QJ
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 1,2007
SUBJECT:
Amendment of Dublin Municipal Code Chapter 2.38 Relating to the
Sale of Surplus Real Property
Report Prepared by Elizabeth H Silver, City Attorney
Melissa Morton, Director of Public Works, and
Leah Peachey, Associate Attorney
ATTACHMENTS:
Staff Report from April 17, 2007 Council Meeting, including
proposed Ordinance
RECOMMENDATIONiJ!"
Waive the reading and ADOPT the Ordinance Amending Chapter
2.38 of the Dublin Municipal Code Relating to the Sale of Surplus
Real Property.
FINANCIAL STATEMENT:
None.
DESCRIPTION:
A comprehensive update to the Dublin Municipal Code (DMC) is currently underway. At its April 17,
2007 meeting, the City Council conducted a public hearing, waived the reading and introduced the
Ordinance amending Chapter 2.38 of the Dublin Municipal Code relating to the Sale of Surplus Real
Property .
RECOMMENDATION:
Staff recommends that the City Council waive the reading and ADOPT the Ordinance Amending Chapter
2.38 ofthe Dublin Municipal Code Relating to the Sale of Surplus Real Property.
COPY TO:
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ITEM NO. '1-. 3
SttRpt 2nd Read Sale of Surplus Property.DOC; 114.1015
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: April 17, 2007
SUBJECT:
PUBLIC HEARING: Amendment of Dublin Municipal Code
Chapter 2.38 Relating to the Sale of Surplus Real Property
Report Prepared by Elizabeth H Silver, City Attorney
Melissa Morton, Director of Public Works,
Leah Peachey, Associate Attorney
ATTACHMENTS:
1) Ordinance Amending Chapter 2.38 of the Dublin Municipal
Code Relating to the Sale of Surplus Real Property
RECOMMENDATION: /1 .,ry/ 1)
.Af./1~} 2)
3)
4)
5)
Receive Staff presentation;
Open public hearing;
Receive public testimony;
Close public hearing and deliberate;
Waive the reading and INTRODUCE the Ordinance
Amending Chapter 2.38 of the Dublin Municipal Code
Relating to the Sale of Surplus Real Property (Attachment 1).
FINANCIAL STATEMENT:
None.
DESCRIPTION:
The existing Dublin Muiricipal Code (DMC) Chapter 2.38 relating to the sale of surplus real property sets
forth the procedures relating to determination and sale of surplus real property within the City of Dublin
("City"). As part of the comprehensive update to the DMC, Staffhas reviewed Chapter 2.38 and proposes
revisions for purposes of clarification and to ensure compliance with state law (Attachment 1; the
"Surplus Real Property Ordinance"). .
City's Authority to Regulate Procedures for Sale of Surplus Real Property
Pursuant to California Government Code Section 37350, a city may adopt reasonable regulations for the
disposal of real property for the common benefit. This procedure applies to the sale or disposal of City-
owned land ownership either in total or through granting an easement. These situations do not occur
frequently because most City-owned property is held for public purposes (i.e. streets, parks, etc.).
However, it is important to have updated procedures in the DMC to address any situations which arise.
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Itf-fAe.h Mem-
COPY TO:
StfRpt Sale of Surplus Property--finaI.DOC; 114.1015
The City's existing regulations provide a procedure for the detemunation of whether property is surplus, f). NL. q
including an annual departmental evaluation of real property owned or controlled by the City that is no -V
longer used by the City and is in excess of the needs of the City. Upon finding that the property is not
required for any other use, the City Manager shall report to the City Council, which has the authority to
declare the property surplus. Prior to the disposal of the property, the City Manager must meet certain
notice requirements set forth at Government Code Section 54220 et seq., which provides that prior to the
disposal of the property, the City shall make a written offer to sell or lease the property to certain public
agencies, such as regional park authorities and local agencies certified to provide affordable housing.
The City's existing regulations provide a procedure for the sale of surplus property, in the event that none
of the public agencies wishes to purchase or lease the property. For surplus real property with an
estimated market value ofless than $5,000, the City Manager may dispose of the property
administratively, without Council approval
The existing regulations prov.ide the City Manager with authority to negotiate to sell the property to an
adjoining property owner if the City's property is not a buildable parcel by itself, or to negotiate a sale
with an adjoining property owner if the combination of the City's property and the adjoining property
would provide improved development potential, subject to Council approval of the final agreement of sale
for properties with an estimated market value of$5,000 or more.
For surplus real property with an estimated market value of $5,000 or more, the City Manager shall
conduct a public notice and bid process to determine the highest responsible bidder. Upon such
determination, the City Manager shall obtain City Council approval of the final agreement of sale.
Finally, the regulations provide that incidental fees such as escrow fees and commissions shall be paid by
tIle purchaser.
Staff proposes the following minor amendments to the Surplus Real Property Ordinance.
Proposed Amendments to Surplus Real Property Ordinance
The proposed Surplus Real Property Ordinance will make the following amendments:
Conformance with the General Plan
The proposed Surplus Real Property Ordinance would add a requirement imposed by state law to provide
that the Planning Commission shall review the disposition of the surplus real property for conformance
with the City's General Plan and issue a report confirming such conformity. (See Government Code
Section 65402.)
City Council Approval of the Agreement of Sale
The existing ordinance provides that the City Council shall have approval over the final agreement of sale
of the property in various sections of the ordinance. (See Sections 2.38.030.B and 2.38.060.) However,
the proposed Surplus Real Property Ordinance clarifies this requirement by incorporating it into the
section providing the procedure for sale of the property. (See Section 2.38.050.F.)
Determination of Buildable Property
"}
The proposed Surplus Real Property Ordinance clarifies that the Director of Community Development
shall make the determination of whether a parcel of surplus real property is buildable and whether ~rJ1../1
development potential would be improved in combination with an adjoining lot, for purposes of U
negotiation by the City Manager. (See Sections 2.38.030.B and 2.38.030.C.)
City Manager Negotiation Authority
The proposed Surplus Real Property Ordinance would clarify the existing negotiation authority of the City
Manager to negotiate a sale with adjacent property owners where: 1) the parcel is not a.buildable parcel
itself under the current zoning, or 2) the development potential of the parcel would be improved in
combination with the adjoining parcel(s). (See Section 2.38.030.D.) In these situations, the City Manager
need not satisfy the bidding requirements set forth in Section 2.38.050; provided, however, that the City
Manager must obtain the approval of the City Council for the final agreement of sale.
Finally, the proposed Surplus Real Property Ordinance amends various provisions of the chapter for
purposes of improved organization.
RECOMMENDATION:
Staff recommends that the City CounciL 1) Receive Staff presentation; 2) Open public hearing; 3) Receive
public testimony; 4) Close public hearing and deliberate; 5) Waive the reading and INTRODUCE the
Ordinance Amending Chapter 2.38 of the Dublin Municipal Code Relating to the Sale of Surplus Real
Property (Attachment 1).
1i~
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DUBLIN
AMENDING CHAPTER 2.38 OF THE DUBLIN MUNICIPAL CODE
RELATING TO THE SALE OF SURPLUS REAL PROPERTY
RECITALS
WHEREAS, pursuant to California Government Code Section 37350, the City of Dublin
("City") may adopt reasonable regulations for the disposal of real property for the common
benefit; and
WHEREAS, the City of Dublin Municipal Code Chapter 2.38 provides regulations and
procedures for the determination and sale of surplus real property within the City; and
WHEREAS, the City Council desires to amend these regulations to clarify the
regulations and ensure that the regulations conform to current law.
NOW, THEREFORE, the City Council of the City of Dublin does hereby ordain as follows:
Section 1. Chapter 2.38 ofthe Dublin Municipal Code is revised as follows, with
deletions indicated in strikethrough and additions indicated in underline:
2.38.010 Applicability.
The procedures set forth in this chapter shall be applicable to the disposal of real property owned
by the Ceity of Dublin and determined to be surplus and excess property no longer necessary for
public purposes. The provisions ofthese rules this chapter shall not apply to the abandonment of
streets or the vacation of easements owned by the Ceity of Dublin and governed by the statutes
of the state of California, nor shall the prO'.risions of these rules apply to the termination,
rejection or abandonment of offers eF of dedication pursuant to Section 66477.2 ofthe
Government Code, or the purchase of real property by a public agency pursuant to Section 54220
et sea. of the Government Code.
2.38.020 Determination of surplus property.
A. On or before December 31 of each year, Agll departments within the Ceity of Dublin
shall submit to the City Manager a report showing any real property in the possession,
custody or control of such department that is no longer used and is otherwise surplus and
excess for the needs of the department in compliance with Section 50569 of the
Government Code. If the City Manager finds that such real property is not required for
any other public use, he or she shall so report to the City Council and the City Council
may declare it surplus, authorize a public sale ofthe property, and cause to be prepared a
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written estimate of its market value.
B. Prior to disposal of surplus real property by public sale,~
.L The Planning Commission shall review the disposition of the surplus real property
for conformance with the City's General Plan and issue a report confirming such
conformity pursuant to Section 65402 of the Government Code: and
2. Ithe City Manager shall provide notice to public agencies in the manner
prescribed by Section 54220 et seq. ofthe Government Code. In the event that no
public agency wishes to sell or lease the property pursuant to Section 54220 et
seq. of the Government Code, the property shall be disposed of pursuant to the
provisions ofthis chapter.
C. The folloY/ing procedures apply if the property is not purchased by a public agency
pursuant to Section 5433054220 et seq. of the Government Code.
2.38.030 Manner of disposal.
A. The City Manager may dispose of any surplus real property whiefl that has an estimated
market value ofless than five thousand dollars ($5,000) without advertising for bids
complying with Section 2.38.050.
B. If the surplus real property has an estimated market value of five thousand dollars
($5,000) or more, the City Manager shall dispose ofthe property in the manner set forth
herein and shall require City Council approyal for final agreement of sale in Section
2.38.050.
C. If the parcel whiefl that is surplus real property is an uneconomic remnant such that it is
not ~ buildable parcel by itself under the current zoning, as determined by the Director of
Community Development. then the City Manager may negotiate a sale price with the
adjoining property owner(s) without advertising for bids complying with Section
2.38.050: provided, however, that the City Manager shall obtain City Council approval
for the final agreement of sale.
I)..;. If the parcel whiefl that is surplus real property is a buildable parcel under the current
zoning, and the combining of the parcel to an adjacent. parcel would provide better
development from a planning perspective than development ofthe surplus property by
itself, as determined by the Director of Community Development, then the City Manager
may negotiate a sale with the adjoining property owner(s) without complying with
Section 2.38.050: provided, however, that the City Manager shall obtain City Council
approval for the final agreement of sale. If an acceptable price (to the City) is not
reached, then tho City shall dispose of the property in the manner set forth herein.
2.38.040 City personnel prohibited.
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No Ceity official, officer or employee shall bid, or be financially interested in any bid for surplus
real property sold in accordance with these rules this chapter.
2.38.050 Sale procedure.
The conveyance of surplus real property by the Ceity shall be by quitclaim of all right, title and
interest in said property held by the Ceity of Dublin to the highest responsible bidder who
submits a responsive bid pursuant to the following procedures:
A. A notice inviting bids shall be published at least once ten (10) days before the opening of
the bids in a !lewspaper of general circulation in the Ceity printed and published within
the Ceounty of }..Iameda. Notice inviting bids shall include a legal description of the
subject property, a vicinity map showing the general location ofthe subject property, the
time and place of opening of bids,. specifications for bids, and a statement that transfer of
the surplus real property shall be by quitclaim deed.
B. Sealed bids, including a ten percent (10%) bid deposit, shall be submitted to the City
Clerk. Said bid deposit shall be in the form of cash, cashier's check, certified check, or
bidder's bond executed by an authorized surety company.
C. At the time and place fixed in the notice to bidders, all sealed proposals which have been
received shall be publicly opened, examined and declared by the City Clerk. Ofthe
proposals submitted which conform to all terms and conditions of sale, the proposal
which is the highest shall be accepted unless a higher oral bid is accepted, or the City
Manager rejects all bids.
D. In his or her sole discretion, the City Manager may set a minimum acceptable bid amount
and may reject any and all bids presented.
E. After opening bids the City Clerk shall call for oral bids from those bidders tendering
written proposals. If, upon the call for oral bidding, any responsible person offers to
purchase the property, upon the terms and conditions specified and for a price exceeding
by at least five percent (5%) ofthe highest written proposal, and thereafter by
successively higher bids by at least five percent (5%) ofthe highest written proposal, then
the responsible oral bid which is the highest shall be accepted. Final acceptance by the
City Manager shall not be made, however, until the oral bid is reduced to writing and
signed by the offerer and an additional cash deposit (in cash, cashier's check or certified
check) in the amount often percent (10%) ofthe bid over the offerer's original bid is
tendered. This reduction of the bid to writing w,ith signature and cash deposit shall be
completed within twenty-four (24) hours after determination ofthe highest bidder has
been declared by the City Manager, or the offerer shall forfeit his or her bid deposit.
F. Upon determination ofthe highest bidder pursuant to Section 2.38.050.E. the City
Manager shall obtain City Council approval for the final agreement of sale and
authorization to execute a quitclaim deed on behalf of the City.Unless otherwise specified
in the notice to bidders, sale of surplus property shall be made for cash, cashier's cheelc or
certified check.
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G. The successful bidder shall pay the balance ofthe purchase price plus all incidental and
ancillary costs within fourteen (14) days of acceptable ofthe bid City Council approval of
the final agreement of sale, unless an extension is agreed to by the Ceity. Failure to
submit the balance and all such costs within fourteen (14) days (or as may be extended)
shall result in forfeiture of the bidder's deposit. Unless otherwise s-pecified in the notice
to bidders, sale of surplus property shall be made for cash, cashier's check or certified
check.
H. All bidder's deposits shall be retained until the quitclaim deed is recorded and shall then
be returned, except as provided in subsection G of this section.
2.38.060 Deed-Additional costs.
Upon receipt of the amount of the highest bid and City Council appro'lal, the City Manager shall
mcocute a quitclaim deed on behalf of the city for the real property. All incidental and ancillary
costs, including but not limited to escrow fees, commissions, title and recording fees shall be
borne exclusively by the purchaser.
2.38.070 Funds.
The amount received for any property sold pursuant to these rules this chapter shall be credited
to the appropriate fund as the City Manager may determine.
2.38.080 Effect on validity.
Nothing in these rules this chapter shall affect the validity of any transfer of title to real property.
2.38.090 Forms.
The following form for notice to bidders and resolution accepting bids may be used:
CITY OF DUBLIN STATE OF CALIFORNIA NOTICE TO BIDDERS OF SALE
OF SURPLUS PROPERTY
1. The City of Dublin has determined that the real property described in
Exhibit A which is attached hereto is surplus and no longer necessary for public
purposes. Said real property is generally located at (DESCRIPTION OF PROPERTY).
2. The City of Dublin desires to sell the herein described property to the
highest responsible bidder by quitclaim deed. The City makes no representations
regarding this property, including but not limited to its size, zoning, utility service or
accessibility, or presence of hazardous materials. While the subject property was
acquired in fee by the City of Dublin in connection with (DESCRIPTION OF
PROJECT), the City of Dublin makes no warranties express or implied with regard to
title of this property
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3. Sealed bids, subject to the conditions named herein, addressed to the City of Dublin will
be received at the office ofthe City Clerk up to 2:00 p.m. (DATE BIDS DUE), at which
time they will be publicly opened and read. The right is reserved as the interests of the
City may require, to reject any and all bids, to waive any informality in bids, and to
accept or reject any items of any bid. .
4. The City further reserves the right to accept oral bids at the time the bids are publicly
opened and read from responsible bidders who have submitted written bids eXgeeding
by at least five percent (5%) of the highest written bid.
5. All incidental or ancillary fees associated with the transfer ofthis property
by quitclaim deed, including but not limited to title insurance, escrow fees,
commission, notaries, recording fees and the like shall be borne exclusively by the
purchaser without recourse to the City.
6. A Bid Deposit shall be placed in an envelope attached to the outside of the
sealed proposal. The Bid Deposit shall be in one ofthe following forms: cash. cashier's
check, certified check, or bidder's bond executed by an authorized corporate surety. The
Bid Deposit Checks or bonds shall be in an amount equal to at least ten percent (10%)
of the total amount ofthe bid.
Section 2. Severability. The provisions of this Ordinance are severable and if any
provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or
inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or
inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences,
sections, words or parts thereof of the ordinance or their applicability to other persons or
circumstances.
Section 3. Effective Date. This Ordinance shall take effect and be enforced thirty
(30) days following its adoption.
Section 4. Posting. The City Clerk of the City of Dublin shall cause this Ordinance
to be posted in at least three (3) public places in the City of Dublin in accordance with Section
36933 ofthe Government Code of the State of California.
PASSED, APPROVED AND ADOPTED this _ day of
,2007.
AYES:
NOES:
ABSENT:
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ABSTAIN:
ATTEST:
Fawn Holman, City Clerk
942263_4; 114.1015
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Janet Lockhart, Mayor