Chapter 2.38
SALE OF SURPLUS REAL PROPERTY
Sections:
2.38.020 Determination of surplus property.
2.38.040 City personnel prohibited.
2.38.060 Deed—Additional costs.
2.38.010 Applicability.
The procedures set forth in this chapter shall be applicable to the disposal of real property owned by the city and determined to be surplus and excess property no longer necessary for public purposes. The provisions of this chapter shall not apply to the abandonment of streets or the vacation of easements owned by the city and governed by the statutes of the state of California, the termination, rejection or abandonment of offers of dedication pursuant to Section 66477.2 of the Government Code, or the purchase of real property by a public agency pursuant to Section 54220 et seq. of the Government Code. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
2.38.020 Determination of surplus property.
A. On or before December 31st of each year, all departments within the city 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 shall so report to the City Council and the City Council may declare it surplus, authorize a public sale of the property, and cause to be prepared a written estimate of its market value.
B. Prior to disposal of surplus real property by public sale:
1. 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. The City Manager shall provide notice to public agencies in the manner prescribed by Section 54220 et seq. of the 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 of this chapter. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
2.38.030 Manner of disposal.
A. 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 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 of the property in the manner set forth in Section 2.38.050.
C. If the parcel that is surplus real property is not a 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 complying with Section 2.38.050; provided, however, that the City Manager shall obtain City Council approval for the final agreement of sale.
If the parcel 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 of the 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. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
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 this chapter. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
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 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. 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. 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. 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.
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%) 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 twenty-four (24) hours after determination of the highest bidder has been declared by the City Manager, or the offerer shall forfeit his bid deposit.
F. Upon determination of the highest bidder pursuant to subsection E of this section, 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.
G. The successful bidder shall pay the balance of the purchase price plus all incidental and ancillary costs within fourteen (14) days of City Council approval of the final agreement of sale, 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. Unless otherwise specified in the notice to bidders, sale of surplus property shall be made for cash, cashier’s check or certified check.
H. All bidders’ deposits shall be retained until the quitclaim deed is recorded and shall then be returned, except as provided in subsection G of this section. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
2.38.060 Deed—Additional costs.
All incidental and ancillary costs, including but not limited to escrow fees, commissions, title and recording fees, shall be borne exclusively by the purchaser. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
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. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
2.38.080 Effect on validity.
Nothing in this chapter shall affect the validity of any transfer of title to real property. (Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))
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.
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: cash, 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.
(Ord. 7-07 § 1 (part): Ord. 3-93 § 1 (part))