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HomeMy WebLinkAbout6.1 Surplus Disposal Real PropertyCITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: May 24, 1993 SUBJECT: Public Heating: Ordinance Establishing Procedure for Disposal of Surplus Real Property (Second Reading) Report by: Public Works Director Lee Thompson EXHIBITS ATTACHED: Draft Ordinance RECOMMENDATION: 1) 2) 3) 4) 5) Open public heating Receive Staff report and public comment Question Staff and the public Close public heating and deliberate Waive reading and adopt ordinance FINANCIAL STATEMENT: None associated with adoption of ordinance DESCRIFrION: This is the second reading of an ordinance that was introduced at the May 10, 1993, City Council meeting. Several months ago, the City Council authorized Staff to proceed with the sale of three remnant parcels from the Dublin Boulevard Extension property acquisitions. Staff has received inquiries and letters of interest from several parties. The City Attorney feels that a specific procedure for disposal of real property should be adopted, as no such provisions exist in the statutes. This procedure conforms with general provisions of the Government Code. Following is a recap of specific details of the proposed procedure. The City Manager may dispose of property with an estimated value of less than $5,000 without advertising for bids. If a surplus parcel is an uneconomic remnant which cannot be utilized on its own under current zoning, the City Manager may sell the parcel to an adjacent property owner without advertising for bids and with City Council approval. (Two of the Dublin Boulevard Extension remnants fall into this category.) If a surplus parcel is buildable under current zoning, and combining the parcel with an adjacent parcel would provide better development than the development of the parcel by itself, the City Manager may negotiate a sale with adjoining property owner(s) with approval by the City Council. If an acceptable price is not reached by negotiation, the proposed bidding procedure shall be used. (One of the Dublin Boulevard Extension remnants falls into this category.) 4. City personnel and officials are prohibited from bidding on surplus real property. o The conveyance of real property shall be in the form of a quitclaim of all fight, title, and interest from the City to the highest responsible bidder. Public noticing and bidding procedures are outlined. The City Manager may reject all bids and may set a minimum bid amount. Following opening of written bids, oral bids may be made in increments of 5 % over the amount of the highest written bid. Sale, subject to Council approval, is to be made on the basis of cash, and payment is to be made within 14 days. Staff recommends that the City Council conduct a public heating, deliberate, waive the reading, and adopt the ordinance. a: (9293) Imay lagstsurp ITEM NO.~~~_ COPIES TO: ORDINANCE NO. -93 AN ORDINANCE OF THE CITY OF DUBLIN AMENDING TITLE 2 OF THE CITY OF DUBLIN MUNICIPAL CODE PROCEDURE FOR DISPOSAL OF SURPLUS REAL PROPERTY SECTION 1. following: Title 2 of the City of Dublin Municipal Code shall be amended to include the "CHAPTER 2.38 SALE OF SURPLUS REAL PROPERTY 2.38.010 APPLICABILITY. The procedures set forth herein shall be applicable to the disposal of real property owned by the City of Dublin and determined to be surplus and excess property no longer necessary for public purposes. The provisions of these rules shall not apply to the abandonment of streets or the vacation of easements owned by the City of Dublin and governed by the statues of the State of California, nor shall the provisions of these rules apply to the termination, rejection, or abandonment of offers or dedication pursuant to Section 66477.2 of the Government Code. 2.38.020 (a) Co) (c) DETERMINATION OF SURPLUS PROPERTY. All departments within the City 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. If the City Manager finds that such real property is not required for any other public use, he shall so report to the City Council and the City Council may declare it surplus and cause to be prepared a written estimate of its market value. Prior to disposal of surplus real property by public sale, the City Manager shall provide notice to public agencies in the manner prescribed by Section 54220 et seq., of the Government Code. The following procedures apply if the property is not purchased by a public agency pursuant to Sections 54220 et. seq. of the Government Code. 2.38.030 (a) MANNER OF DISPOSAL. The City Manager may dispose of any surplus real property which has an estimated market value of less than Five Thousand Dollars ($5,000) without advertising for bids. (b) If the surplus real property has an estimated market value of Five Thousand Dollars ($5,000) or more, the City Manager shall dispose of the property in the manner set forth herein and shall require City Council approval for final agreement of sale. (c) If the parcel which is surplus real property is an uneconomic remnant such that it is not buildable by itself under the current zoning, then the City Manager may negotiate a sale price with the adjoining property owner(s) without advertising for bids. (d) If the parcel which 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 of the surplus property by itself, then the City Manager may negotiate a sale with the adjoining property owner(s). If an acceptable price (to the City) is not reached, then the City shall dispose of the property in the manner set forth herein. 2.38.040 CITY PERSONNEL PROHIBITED. No City official, officer, or employee shall bid, or be financially interested in any bid for surplus real property sold in accordance with these rules. 2.38.050 SALE PROCEDURE. The conveyance of surplus real property by the City shall be by quitclaim of all right, title and interest in said property held by the City 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 newspaper of general circulation in the City printed and published within the County of Alameda. Notice inviting bids shall include a legal description of the subject property, a vicinity map showing the general location of the 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) (c) (d) (e) (f) (g) 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. 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. Of the 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. In his sole discretion, the City Manager may set a minimum acceptable bid amount and may reject any and all bids presented. 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 %) of the highest written proposal, and thereafter by successively higher bids by at least five percent (5 %) of the 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 of ten percent (10%) of the bid over the offerer's original bid is tendered. This reduction of the bid to writing with signature and cash deposit shall be completed within 24 hours after determination of the highest bidder has been declared by the City Manager, or the offerer shall forfeit his bid deposit. Unless otherwise specified in the notice to bidders, sale of surplus property shall be made for cash, cashier's check, or certified check. The successful bidder shall pay the balance of the purchase price plus all incidental and ancillary costs within fourteen (14) days of acceptance of the bid, unless an extension is agreed to by the City. 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. (h) All bidder's deposits shall be retained until the quitclaim deed is recorded and shall then be returned, except as provided in (g) above. 2.38.060 DEED - ADDITIONAL COSTS. Upon receipt of the amount of the highest bid and City Council approval, the City Manager shall execute 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 shall be credited to the appropriate fund as the City Manager may determine. 2.38.080 EFFECT ON VALIDITY. Nothing in these rules 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 (DESCRIFrlON 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. 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. 3. Sealed bids, subject to the conditions named herein, addressed to the City of Dublin will be received at the office of the 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 from responsible bidders who have submitted written bids exceeding by at least five percent (5%) of the highest written bid. 5. All incidental or ancillary fees associated with the transfer of this 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 of the following forms: cashier's check, certified check, or bidder's bond executed by an authorized corporate surety. Checks or bonds shall be in an amount equal to at least ten percent (10%) of the total amount of the bid. Dated: City Clerk" SECTION 2: This ordinance shall become effective 30 days after its final passage and adoption by the City Council. 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 of the Government Code of the State of California. PASSED, APPROVED, AND ADOPTED this 24th day of May, 1993. AYES: NOES: ABSENT: ATTEST: Mayor City Clerk a: (9293) lmay Iordsurp