CHAPTER 8
DISPOSAL AND LEASE OF REAL PROPERTY

Article 1    SALE OF SURPLUS REAL PROPERTY

2.8.102 Applicability.

The procedure set forth in this section shall be applicable to the disposal of real property owned by the City of Oakley 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 Oakley and governed by the statutes of the State of California, nor shall the provisions of these rules apply to the termination, rejection or abandonment of offers of dedication pursuant to Section 66477.2 of the Government Code.

2.8.104 Determination of Surplus Property.

a.    All departments within the City of Oakley 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/she 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.

b.    Prior to disposal of surplus real property by public sale, the City Manager shall provide written notice to public agencies in the manner prescribed by Section 54220 et seq. of the Government Code.

c.    The following procedures apply if the property is not purchased by a public agency pursuant to Section 54222 et seq. of the Government Code.

2.8.106 Manner of Disposal.

a.    The City Manager may dispose of any surplus real property which has an estimated market value of less than $5,000 without advertising for bids.

b.    If the surplus real property has an estimated market value of $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 the 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 renegotiate 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.

2.8.108 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.

2.8.110 Sale Procedures.

The conveyance of surplus real property by the City shall be made to the highest responsible bidder who most closely meets the terms and conditions of the notice inviting bids 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 Contra Costa County. The 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 bids, and the terms and conditions for bids.

b.    Sealed bids, including a bid deposit of ten percent (10%) of the bid price, but not exceeding $10,000, shall be submitted to the City Clerk. Said bid deposit shall be in the form of 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 the sale, the proposal which is the highest shall be referred to the City Council unless a higher oral bid is received or the City Manager rejects all bids, or if the Council determines that a lower bid is more responsive for the reasons specified in subsection (e) of this section.

d.    The City Manager may set a minimum acceptable bid amount and may reject any and all bids presented.

e.    In cases where the City wishes the surplus property to be developed or used in a manner to support specified economic development, retail, industrial or housing goals and policies, the notice inviting bids shall require bidders to specify end-uses for the property and the City may specify deadlines for the accomplishment of the end-use. Preference shall be given to the bid with the highest monetary purchase price which most closely accomplishes the end-use goals. As to all cases, the City and the purchaser shall enter into a purchase agreement approved by the City Council.

f.    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 the highest written proposal by at least five percent, then the responsible oral bid shall be received for presentation to the City Council if it meets the after-use criteria specified in subsection (e) of this section. Final receipt by the City Clerk shall not be made, however, until the oral bid is reduced to writing and signed by the offeror and an additional deposit in the amount of ten percent (10%) over the offeror’s original written bid is tendered, though not to exceed an additional $10,000. This reduction of the bid to writing and submittal of deposit shall be completed within one business day (banking) after determination of the highest bidder has been announced by the City Manager, or the offeror shall forfeit his/her bid deposit.

g.    Unless otherwise specified in the notice to bidders, sale of surplus property shall be completed in an escrow of the City’s choice. All successful bids shall be incorporated into a sale and purchase agreement to be approved by the City Council.

h.    The successful bidder shall close escrow as specified in the purchase agreement.

i.    All bidders’ deposits shall be retained until escrow closes. If the apparent purchaser fails to complete the transaction and to close escrow, then the City may enter into a purchase agreement with the next lowest monetary bidder who most closely meets the requirements of subsection (e) of this section and retain the original apparent purchaser’s deposit.

(Sec. 2, Ordinance No. 02-12, adopted May 8, 2012)

2.8.112 Deed – Additional Costs.

(Repealed by Ordinance No. 02-12, on May 8, 2012)

2.8.114 Funds.

(Repealed by Ordinance No. 02-12, on May 8, 2012)

2.8.116 Effect On Validity.

(Repealed by Ordinance No. 02-12, on May 8, 2012)

2.8.118 Forms.

(Repealed by Ordinance No. 02-12, on May 8, 2012)

Article 2    UNCLAIMED PROPERTY

2.8.202 Disposition of Property – Generally.

All property found in this City whose ownership is unknown or unclaimed shall be delivered to, and held and disposed of by the City Manager, as herein provided.

2.8.204 Retention Period.

All such unclaimed property described above shall be held by the City for a period of at least four months, except that unclaimed bicycles shall be held for a period of at least three months.

2.8.206 Restoration to Owner.

The Chief of Police shall attempt to ascertain the owner of such property and shall restore the same to him/her, if found, upon proof of ownership satisfactory to the Chief and payment of costs herein provided.

2.8.208 Storage Charges.

The City Manager shall establish a schedule of storage charges for property held as herein provided, based upon the amount of space and care required to preserve the property, but small articles held for short periods may be restored to their owner without charge. Record shall be kept of the actual cost of locating the owner of such property, including advertising costs, if any. Such charges and costs shall be paid to the City by the owner as provided in Section 2.8.206.

2.8.210 Disposition of Automobiles.

Any unclaimed automobiles shall be disposed of as provided in the California Vehicle Code Section 22851.2 et seq.

2.8.212 Disposition of Stolen or Embezzled Property.

All property described in Section 1411 of the California Penal Code which comes into the possession of the Chief of Police shall be disposed of by the Chief of Police in the manner provided in this article.

2.8.214 Public Auction.

If within four months (or three months, in the case of bicycles) such property remains unclaimed or the charges thereon have not been paid, the City Manager may sell the same at public auction to the highest bidder for cash in lawful money of the United States. The Chief of Police shall give notice of the time and place of sale, describing the property, by publishing such notice one time in the official newspaper of the City or if there is no such official newspaper, the posting of said notice in at least three public places in the City, at least five days before the time fixed for the sale. Any property remaining unsold after being offered at such public auction may be destroyed or otherwise disposed of by the City Manager. If the City Manager determines that any such property is needed for public use, such property may be retained by the City and need not be sold.

2.8.216 Proceeds of Sale.

All proceeds from such sales shall be deposited in the general fund of the City.

Article 3    ALTERNATE LEASING PROCEDURE

2.8.302 Resolution of Intention.

a.    Except as otherwise provided in this section, before ordering the lease of any real property belonging to the City, the City Council shall, in a regular open meeting by a two-thirds vote of all its members, adopt a resolution declaring its intention so to lease and calling for bids thereon.

b.    The resolution shall:

1)    Describe the property sufficiently to identify it;

2)    Specify either the terms of the lease, including minimum rent, or refer to a proposed form of lease filed in the City Clerk’s office containing that information; and

3)    Fix a time, at least three weeks thereafter, for a public meeting of the Council at its regular place of meeting, for receipt and consideration of sealed proposals for the lease.

2.8.304 Notice.

a.    Notice for the resolution and meeting shall be given by posting certified copies of the resolution in at least three public places in the City for at least 15 days before the meeting’s date and by publishing notice of the call for bids for at least two weeks in a newspaper of general circulation published in the City.

b.    Notice shall also be mailed or delivered at least 15 days prior to accepting offers to lease pursuant to this section to any person who has filed a written request for notice with either the City Clerk of the City Council or with any other person designated by the Council to receive such requests.

c.    The notice required by this section shall describe the property proposed to be leased, the term of the lease, the location where offers to lease the property will be accepted, the location where leases will be executed, and any City officer authorized to execute the lease.

2.8.306 Written and Oral Bids.

At the time and place fixed, in open session, the City Council shall open and examine all sealed written proposals and declare those that are from responsible bidders and that conform to the terms and conditions in the resolution. The Council shall then call for similar oral bids exceeding by at least 5% in rent the highest such written proposal.

2.8.308 Final Acceptance or Rejection.

At the same meeting or at any adjourned session thereof, the Council shall consider all such proposals and bids and shall by resolution either accept the highest bid or reject them all and withdraw the property from lease.

2.8.310 Execution of Lease Authorized By Resolution.

Any Council resolution accepting any bid shall authorize and direct the Mayor to execute a lease and to deliver it upon lessee’s performance of and compliance with all the terms or conditions of the contract to be preformed concurrently therewith.

2.8.312 Exclusion From Bidding Procedure.

a.    Any proposed lease of not more than five years, nonrenewable duration, and having an actual monthly rental not exceeding $1,000 is excluded from the bidding procedure required by this section, except that notice shall be given pursuant to Government Code Section 6061, posted in the office of the City Clerk. Additionally, if the lease involves residential property, notice shall be given to the housing sponsors as defined by Sections 50074 and 50074.5 of the Health and Safety Code.

b.    The notice required by this section shall describe the property proposed to be leased, the term of the lease, the location where offers to lease the property will be accepted, the location where leases will be executed and any City officer authorized to execute the lease.

2.8.314 Exceptions.

This section provides an alternative leasing procedure only for real property that otherwise must be leased in accordance with Government Code Sections 25526 to 25535; it does not apply to real property leased pursuant to Government Code Section 25536.

Article 4    ALTERNATIVE REAL PROPERTY PURCHASE AND ACCEPTANCE PROCEDURE

2.8.402 Authority of Public Works Director.

The Board of Supervisors authorizes the City Manager or his or her designee to perform all acts necessary to approve and accept for the City the acquisition of any interest in real property where the purchase price for such interest does not exceed $25,000. Such acquisitions shall only be approved and done in accordance with current appropriated budget accounts and applicable regulations. The City Manager shall report quarterly to the Council on acquisition(s) done pursuant to this section, including the interest acquired, its price, area and necessity for the purchase.

2.8.404 Recording.

For purposes of this chapter, if the real property interest to be accepted is in the form of a recordable document, the City Manager or his or her designee deputy shall accept the real property interest for recordation pursuant to California Government Code Section 27281 and shall promptly file such real property interest with the County Recorder for recording.