Chapter 1.10
PROCEDURES FOR MANAGEMENT AND DISPOSITION OF COUNTY-OWNED PERSONAL AND REAL PROPERTY

Sections:

ARTICLE I. DEFINITIONS

1.10.010    County council.

1.10.020    Estimated market value.

1.10.030    Lot.

1.10.040    Emergency.

1.10.050    Worthless property.

1.10.060    Tax title property.

1.10.070    County real property.

1.10.080    Public sale.

ARTICLE II. GENERAL AUTHORITY

1.10.090    Establishment of comprehensive procedures for county property management.

1.10.100    Severability.

1.10.110    Reservation of powers.

ARTICLE III. PROPERTY MANAGEMENT COMMITTEE

1.10.120    Property management committee – Creation.

1.10.130    Property management committee – Goals and duties.

ARTICLE IV. PERSONAL PROPERTY

1.10.140    Duty to maintain inventory of personal property.

1.10.150    Duty to determine surplus property.

1.10.160    Purchasing agent – Duty to determine value of surplus property.

1.10.170    Worthless property.

1.10.180    Authority to dispose of personal property.

1.10.190    Notice of public hearing.

1.10.200    Advertisement of sale – Requirements.

1.10.210    Sale of county personal property – Public sale.

1.10.220    Title.

1.10.230    Disposition of proceeds.

1.10.240    Intergovernmental sales – In excess of $1,000.

1.10.250    County personal property – Trade in – In excess of $1,000.

1.10.260    Specialty or unique personal property.

ARTICLE V. REAL AND TAX TITLE PROPERTY

1.10.270    Duty to inventory and to declare real property surplus.

1.10.280    Tax title property.

1.10.290    Property management committee – Duty to determine estimated market value of all real property and tax title property recommended for sale.

1.10.300    Disposition of county tax title property.

1.10.310    Authority to dispose of county real property.

1.10.320    Notice of public hearing.

1.10.330    Advertisement of sale – Requirements.

1.10.340    Sale of county real property.

1.10.350    Purchase of county real property by county employees.

1.10.360    Bids from real estate brokers to negotiate sales or lease of county real and tax title property.

1.10.370    Intergovernmental sales and leases.

1.10.380    Disposition of proceeds of sales.

1.10.390    Title.

1.10.395    Worthless county-owned structures.

ARTICLE VI. LEASING COUNTY REAL OR TAX TITLE PROPERTY

1.10.400    Authority to lease.

1.10.410    Lease review guidelines and lease approval.

1.10.420    Leasing – Public bids.

1.10.430    Application to lease – When required.

1.10.440    Lease terms.

1.10.450    Rental adjustment requirements – Long term leases.

1.10.460    Administration of leases.

1.10.470    Property management committee review of leases.

Article I. Definitions

1.10.010 County council.

The county council is defined for purposes of this chapter as the governing authority of Whatcom County, as established by the Whatcom County Charter. (Ord. 90-126 Exh. A (part)).

1.10.020 Estimated market value.

Estimated market value is defined as an amount in the competitive market that a well-informed and willing buyer or lessee who desires but is not required to buy or lease, would accept, and which a well-informed and willing seller or lessor who desires but is not required to sell or lease, would pay for the purchase of use of the premises, after due consideration of all the elements reasonably affecting value. (Ord. 90-126 Exh. A (part)).

1.10.030 Lot.

A lot is defined as a number of goods of a like kind, serving a similar purpose. (Ord. 90-126 Exh. A (part)).

1.10.040 Emergency.

Emergency is an occurrence whereby county property would suffer material injury, loss or damage by delay of action. (Ord. 90-126 Exh. A (part)).

1.10.050 Worthless property.

Worthless property is that property which when processed in the manner most advantageous to the county cannot reasonably be sold for an amount sufficient to recoup the cost of sale or of disposal. (Ord. 90-126 Exh. A (part)).

1.10.060 Tax title property.

Tax title property shall mean all real property acquired by the county for lack of other bidders at a tax foreclosure sale. (Ord. 90-126 Exh. A (part)).

1.10.070 County real property.

All county-owned real property which is not tax title property. (Ord. 90-126 Exh. A (part)).

1.10.080 Public sale.

Public sale means either sale by public auction or by award to the highest responsive and responsible bidder following an advertised call for sealed bids. (Ord. 90-126 Exh. A (part)).

Article II. General Authority

1.10.090 Establishment of comprehensive procedures for county property management.

Comprehensive procedures for the management of county real, personal and tax title property as established by this chapter, authority for which is granted in RCW 36.34.005, are deemed to be in the best interest of the public. (Ord. 90-126 Exh. A (part)).

1.10.100 Severability.

If any provision of this chapter or its application to any person or circumstances is held invalid, the remainder of this chapter or its application to other persons or circumstances, shall not be affected. (Ord. 90-126 Exh. A (part)).

1.10.110 Reservation of powers.

This chapter shall be supplemental to authority otherwise granted by law and Whatcom County retains all powers now or hereafter granted by law for the management of the county’s property. (Ord. 90-126 Exh. A (part)).

Article III. Property Management Committee

1.10.120 Property management committee – Creation.

A property management committee shall be established comprised of the following members or their designees: the county executive, assessor, director of parks, director of planning, director of public works, purchasing agent and treasurer. Additional seats upon the committee may be created by majority vote of its members. (Ord. 90-126 Exh. A (part)).

1.10.130 Property management committee – Goals and duties.

Property management recommendations and decisions shall be based solely upon the best interest of the public.

County Real Property and Tax Title Property. For real property and tax title property, considerations in determining what is in the best interest of the public shall include maintaining an adequate revenue base by returning tax title property to the tax rolls, identifying and retaining potential open space, recreational and ecologically sensitive property for public benefit, preserving the integrity of county comprehensive land use plans, identifying and disposing of property with little present or future value and maximizing return in the sale or lease of county property.

The property management committee shall annually review and make recommendations concerning the use and disposition of county-owned real property. The property management committee shall twice annually review and make recommendations concerning the use and disposition of tax title property.

Personal Property. For personal property, considerations in determining what is in the best interest of the public shall include maximizing the efficient use of county property, maintaining a high level of public awareness while acquiring and disposing of county property, obtaining the best values and returns in acquiring and disposing of county property and the prompt, fair and efficient disposal of worthless property. (Ord. 90-126 Exh. A (part)).

Article IV. Personal Property

1.10.140 Duty to maintain inventory of personal property.

Each county department head shall submit biennially to the county purchasing agent an inventory, current as of a date set by the property management committee, of all county-owned capital assets and small and attractive assets. Capital assets and small and attractive assets shall be defined by county administrative policy. The inventory shall identify date of acquisition, and location of all assets and cost of capital assets.

Each proprietary fund shall inventory parts, materials and supplies held in stores annually in conjunction with year-end financial reporting and shall submit a copy of its inventory to the county purchasing agent.

Property held by the sheriff from a criminal investigation, seizure, forfeiture or abandonment shall be exempt from the provisions of this chapter. (Ord. 2013-030 Exh. A; Ord. 90-126 Exh. A (part)).

1.10.150 Duty to determine surplus property.

All county departments shall promptly advise the purchasing agent of any personal property which is surplus to the department’s needs, and the purchasing agent, when so advised, shall:

A. Determine whether another department has a need for the property and, if so, transfer custodianship to that department at such value as is required by law.

B. If no other department has a current need for such property the purchasing agent shall review whether the following are financially advantageous:

1. Trade-in of the property;

2. Lease to a nongovernmental agency;

3. Sale or lease to another governmental agency.

C. If the property has a value less than $10,000, the purchasing agent may authorize any of the above uses. If the property is valued over $10,000, the purchasing agent may authorize trade-in when purchasing replacement property, but otherwise the purchasing agent shall make the appropriate recommendation to the county council who shall dispose of the property in the manner herein provided. (Ord. 90-126 Exh. A (part)).

1.10.160 Purchasing agent – Duty to determine value of surplus property.

Personal property which county departments determine to be surplus shall be appraised by the purchasing agent and an estimated market value shall be established by the purchasing agent exercising his best professional judgment in making a good faith determination as to the value of the property. (Ord. 90-126 Exh. A (part)).

1.10.170 Worthless property.

Where the purchasing agent determines surplus personal property worthless and without value, the property shall be disposed of by the purchasing agent in the most cost-efficient manner. The purchasing agent shall keep a record of the nature and condition of the property and the date and means of its disposal. In the event the value at the site is less than the cost of hauling to another place of use or disposal, the purchasing agent may donate the property to any person or entity, provided a record be kept by the purchasing agent of the name and address of the recipient and the property received. In no event shall the property be given to county employees or members of their families. (Ord. 90-126 Exh. A (part)).

1.10.180 Authority to dispose of personal property.

Whenever the purchasing agent submits a list of surplus personal property to the county council, and the council finds by resolution, following a public hearing, that it is in the best interest of the people of Whatcom County to sell or lease said property, the property shall be sold or leased under the limitations and restrictions and in the manner herein provided. The purchasing agent may declare property worthless under Section 1.10.170 or trade in property under Section 1.10.150 without approval of county council. (Ord. 90-126 Exh. A (part)).

1.10.190 Notice of public hearing.

The notice of public hearing of intention to sell personal property at auction must be published in a legal newspaper of general circulation at least once a week for two consecutive weeks, the last notice to appear not more than five days prior to the date of hearing. The notice for public hearing must particularly describe the property to be sold, the day, hour and place the hearing is to be held. However, where applicable, the property may be described by lot rather than item. Additionally, the notice of public hearing shall be posted in a conspicuous place in the Courthouse not less than five days prior to the hearing. (Ord. 91-068 Exh. A (part); Ord. 90-126 Exh. A (part)).

1.10.200 Advertisement of sale – Requirements.

Where the county council adopts by resolution the sale of surplus personal property the property may be sold at a public sale following publication of a notice in a legal newspaper of general circulation at least once a week for two consecutive weeks, the last notice to appear not more than five days prior to the date of sale. The advertisement for sale must particularly describe the property to be sold and designate the day, hour and the place of sale. However, where applicable, the property may be described by lot rather than item. Additionally, the advertisement for sale shall be posted in a conspicuous place in the Courthouse not less than five days prior to the sale. The advertisement shall advise interested purchasers where the items to be sold will be available for public inspection during at least one business day prior to the sale. (Ord. 91-068 Exh. A (part); Ord. 90-126 Exh. A (part)).

1.10.210 Sale of county personal property – Public sale.

Personal property shall be consolidated and aggregated for disposal at public auction yearly or as often as practicable, except as otherwise provided below. The auction shall be planned and scheduled by the purchasing agent with the assistance of the public works equipment manager, the superintendent of building maintenance, and the county treasurer, under the policy direction of the property management committee. Sales of county personal property shall be made to the highest responsive and responsible bidder at public sale except when:

A. Sold or transferred to a governmental agency; or

B. The county council has determined an emergency to exist; or

C. County personal property is traded in on the purchase of a replacement; or

D. Where the county council declares the item of personal property to be a specialty or unique item with an estimated market value in excess of $1,000.

E. Where there is no bid within the advertised terms the county may withdraw the property from sale, or if the county deems such action to be in the public interest, reject any or all bids either written or oral, and thereafter negotiate the sale of the property providing the negotiated price is higher than the highest bid at the public sale and that the public has notice by advertisement, under Section 1.10.190, and an opportunity to compete, through mailed bids, for purchase by offer of a more favorable price, but in no event shall county personal property be sold to a county official or employee who participated in the decision to declare the property surplus, or who has direct responsibility for any aspect of the surplus sale. (Ord. 90-126 Exh. A (part)).

1.10.220 Title.

In no case shall the title to any item of county personal property be transferred until the purchase price has been paid. (Ord. 90-126 Exh. A (part)).

1.10.230 Disposition of proceeds.

The county departments responsible for conducting sales or leases shall be reimbursed for advertising, postage and fees, if any, from the proceeds of the sale. The balance of the proceeds shall be credited by the county treasurer to the county fund from which the original purchase price was paid, if known. Otherwise, proceeds will be credited to the current expense fund. (Ord. 90-126 Exh. A (part)).

1.10.240 Intergovernmental sales – In excess of $1,000.

Whatcom County may dispose of or lease county property to another governmental agency and may acquire or lease personal property for the county from another governmental agency by negotiation, upon such terms as may be agreed upon and for such consideration as may be deemed adequate by the county executive. (Ord. 90-126 Exh. A (part)).

1.10.250 County personal property – Trade in – In excess of $1,000.

The county may trade in property belonging to the county when purchasing replacement property. If the county elects to trade in property, it shall include in any call for bids on the property to be purchased a notice that the county has for sale or trade in property of a specified type, description and quantity which will be sold or traded in on the same day and hour that the bids on the property to be purchased are opened. Any person may bid for the purchase of such trade in property and any supplier may include in its offer to supply an offer to accept the designated county property trade in by setting forth in the bid the amount of such allowance.

In determining the lowest and best bid the county shall consider the net cost to the county after trade in allowances have been deducted. The county may accept the bid of any bidder without trade in of the county property, but may not require any such bidder to purchase the county property without awarding the bidder the purchase contract. Anyone may make an offer for the purchase of the used equipment independent of a bid on the new equipment and the county shall consider such offers in relation to the trade in allowances offered to determine the net best sale and purchase combination for the county. (Ord. 90-126 Exh. A (part)).

1.10.260 Specialty or unique personal property.

Where the county council by resolution finds it in the best interest of the county to sell specialty or unique pieces of personal property which includes but is not limited to computer systems, communication equipment, electrical components and heavy equipment, with an estimated market value in excess of $1,000, it may authorize the county purchasing agent to enter into negotiations for sale of the item for a price not less than 90 percent of the estimated market value. If a sale is negotiated the public will be given two weeks notice by advertisement, in a legal newspaper, and an opportunity to compete for the item’s purchase by mailed bids. The advertisement shall describe the item with particularity and state the item’s negotiated sale price. In no event shall the county award a bid to any county employee or a member of the employee’s family. (Ord. 90-126 Exh. A (part)).

Article V. Real and Tax Title Property

1.10.270 Duty to inventory and to declare real property surplus.

Each county department having custodianship over county real property shall, in conjunction with the five-year comprehensive plan review process and no later than a date established by the property management committee submit to the county treasurer a current inventory of all its county-owned real property showing cost, if known, method of acquisition, present estimated market value, special characteristics, and improvements affecting its economic value and potential uses, and current use. New acquisitions shall be reported to the treasurer within 30 days of the acquisition date. The county treasurer will keep a comprehensive list of the county’s real property.

County departments having custodianship of real property shall state the present use of each parcel on its inventory and whether all or part thereof is being used. For parcels or portions of parcels not in use, said departments shall state the future probability of use and estimated date of usage. These statements shall be in writing and forwarded to the county treasurer no later than a date established by the property management committee. Upon receipt of the above information, the county treasurer shall present same to the property management committee.

The property management committee, along with the appropriate departmental custodian, shall review and make recommendations to the county executive regarding the status of each lot, tract, parcel or other interest included in the real property inventory. The county executive shall submit said recommendations, including a map showing the general location of the property along with the determination of market value and the department shall include a listing of all costs incurred in the property inventory for all properties recommended to be sold or exchanged, with or without comment, to the county council for final action. Recommendations may be for any one of the following actions:

A. Retain the property for its present use;

B. Retain the property and change the manner of county use;

C. Declare the property surplus and sell it;

D. Transfer property to another county department;

E. Exchange property for privately or publicly owned lands that better meet county land needs;

F. Sell or lease property to nongovernmental parties;

G. Sell or lease property to other governmental agencies. (Ord. 96-036; Ord. 90-126 Exh. A (part)).

1.10.280 Tax title property.

The county treasurer shall, no later than a date set by the property management committee each year, prepare an inventory of all tax title property. Upon completion of said inventory, the county treasurer shall present same to the property management committee. The property management committee shall review and make recommendations to the county executive concerning the disposition of each lot, tract, parcel or other interest included in the tax title inventory. The county executive shall submit said recommendations with or without comment, to the county council for final action.

Recommendations may be for one of the following actions:

A. Offer the property for public sale;

B. Convey the property to the county in its proprietary capacity;

C. Rent or lease the property;

D. Exchange the property with another governmental or municipal agency for lands of substantially the same market value;

E. Retain the property in its current status.

The county treasurer shall maintain a list of all tax title property for which sale requests have been received since the last tax title property sale and twice each year submit same to the property management committee. Within 30 days of each submission, the property management committee shall review and make recommendations to the county executive concerning the disposition of each lot, tract, parcel or other interest included on said list. The county executive shall submit recommendations, with or without comment, to the county council for final action. (Ord. 90-126 Exh. A (part)).

1.10.290 Property management committee – Duty to determine estimated market value of all real property and tax title property recommended for sale.

The property management committee shall obtain and provide to the county council an estimated market value for all county real and tax title property recommended for sale to the county council. In determining the market value, the committee shall first examine property tax records to determine if the property has been assessed by the county within the last five years. If the property has not been assessed within the last five years, the county assessor shall prepare an assessment of the property within 30 days of a request by the property management committee.

Once a property tax search or assessment by the county auditor has been completed, the property management committee shall follow these guidelines:

A. If the value is $15,000 or less, the county assessor’s value shall be used as the market value.

B. If the value is over $15,000, an independent certified appraiser shall be hired to establish the market value of the property. (Ord. 96-036; Ord. 90-126 Exh. A (part)).

1.10.300 Disposition of county tax title property.

Disposition of the county tax title property shall be made pursuant to the powers, procedures and notice requirements contained in RCW 84.64.270 and 84.64.320 and Chapter 36.35 RCW. (Ord. 93-087; Ord. 90-126 Exh. A (part)).

1.10.310 Authority to dispose of county real property.

Within 60 days following receipt of the estimated market values, the county council shall hold a public hearing on the property management committee recommendations. Following the hearing, if it is deemed to be in the best interest of the people of Whatcom County to sell all or part of said property, the council shall adopt a resolution to that effect and the property shall be sold under the limitations and restrictions and in the manner herein provided.

In making such sales of county real property and tax title property, the county may sell or reserve any rights to timber, minerals, or other resources on any land owned by the county separate and apart from the land in the same manner and upon the same terms and conditions as provided in this chapter for the sale of real property. (Ord. 90-126 Exh. A (part)).

1.10.320 Notice of public hearing.

Notice shall be provided of the public hearing at which the county council will consider sale of county real property as authorized herein. The notice of public hearing must be published in a legal newspaper of general circulation once during each of two successive calendar weeks, the first notice to appear at least 10 days prior to the date of hearing. The notice for public hearing must contain both the street address, if available, and the legal description of the property, its estimated market value, and designate the day, hour and the place of the public hearing. The notice shall also state which methods contained in Section 1.10.340 are under consideration for disposition of the property. If the property is offered for sale on other than a cash basis, the terms must be stated in the notice. Additionally, the notice of public hearing shall be posted in a conspicuous place in the courthouse not less than 10 days prior to the hearing. The county council shall be responsible for publishing or posting all above-referenced notices. (Ord. 92-012; Ord. 90-126 Exh. A (part)).

1.10.330 Advertisement of sale – Requirements.

Where the county council adopts by resolution the sale of county real property, the property may be sold at a public sale following publication of a notice in a legal newspaper of general circulation at least once a week for three consecutive weeks, the last notice to appear not more than 10 days prior to the date of sale. The advertisement for sale must contain both the street address, if available, and the legal description of the part and parcel, its estimated market value, and designate the day, hour and the place of sale. If the property is offered for sale on other than a cash basis, the terms must be stated in the advertisement. Additionally, the advertisement for sale shall be posted in a conspicuous place in the Courthouse not less than 10 days prior to the sale. Sales of tax title property must comply with RCW 84.64.270, and with Section 1.10.340, if applicable. (Ord. 90-126 Exh. A (part)).

1.10.340 Sale of county real property.

All sales of county real property shall be under the direction of the Whatcom County treasurer and shall be made to the highest responsible bidder at a public sale except when:

A. Sold to a governmental agency; or

B. Sold to a nonprofit agency when determined to be in the public interest;

C. The county council has determined an emergency to exist; or

D. The county real property is traded for real property of equal or greater value; or

E. The county council finds, after public hearing, that it is in the best interest of the public to list the real property for sale through a licensed real estate agent.

F. Where there is no public bid at or above the estimated market value, the property management committee may:

1. List the property for sale through a licensed real estate agent; or

2. Negotiate the sale of the property at a price less than estimated market value; or

3. Withdraw the property from sale. (Ord. 90-126 Exh. A (part)).

1.10.350 Purchase of county real property by county employees.

County officials or employees who participated in the decision to declare real property to be surplus or who have direct responsibility for any aspect of the surplus sale may not directly or indirectly bid for such property at public sale. In no event shall county real property be sold directly or indirectly to a county employee through private negotiation as outlined in Section 1.10.340F. (Ord. 90-126 Exh. A (part)).

1.10.360 Bids from real estate brokers to negotiate sales or lease of county real and tax title property.

Where the county elects under Section 1.10.340E or F.1 to negotiate the sale of county real property, or elects under Section 1.10.400 to negotiate the lease of county real or tax title property, the county treasurer may select a real estate broker from the county’s annual RFP list to facilitate negotiated sales or leases of the property. Such listing with a broker shall be for no more than six months from the date of the last attempted public auction. After the expiration of the listing, the county shall reschedule the property for public auction at such future time as deemed appropriate by the county treasurer or as specified by resolution of the county council. (Ord. 96-036; Ord. 90-126 Exh. A (part)).

1.10.370 Intergovernmental sales and leases.

Whatcom County may sell or lease county property to another governmental agency and may acquire real property for the county from another governmental agency by negotiation, upon such terms as may be agreed upon and for such consideration as may be deemed adequate by Whatcom County, without entering into the public bidding process. (Ord. 90-126 Exh. A (part)).

1.10.380 Disposition of proceeds of sales.

The Whatcom County treasurer is authorized to establish such funds and accounts as may be necessary to deposit sale or lease proceeds until final disposition. The proceeds derived from the sale or lease or other use of tax title property shall be distributed in accordance with state law; provided, that the county shall be reimbursed from the proceeds of the sale or lease for costs of title searches, advertising, postage, fees and other expenses incurred in appraising, maintaining, repairing or selling the subject property, including a pro rata share of indirect administrative costs as computed under normal county accounting procedures. (Ord. 96-036; Ord. 90-126 Exh. A (part)).

1.10.390 Title.

Upon receipt of sufficient consideration, the county treasurer shall execute the proper documents transferring title attested to by the county auditor. In no case shall title be transferred until the purchase price has been fully paid. (Ord. 90-126 Exh. A (part)).

1.10.395 Worthless county-owned structures.

All county department heads shall notify the director of administrative services of county-owned structures deemed to be worthless. If the director determines a county-owned structure to be worthless and immediately hazardous to the public, the director shall notify the county executive. If the county executive concurs with the determination of the director, the structure shall be demolished. The county executive shall notify the county treasurer, the county assessor, and the county council of the demolition. If the director determines a county-owned structure to be worthless, but not immediately hazardous to the public, the director shall refer the matter to the county executive for review. Upon a determination by the county executive that the property is in fact worthless and without value, the matter shall be referred to the county council for its approval prior to demolition. (Ord. 99-047, 1999).

Article VI. Leasing County Real or Tax Title Property

1.10.400 Authority to lease.

Where it appears to be in the best interest of the county and the people thereof, Whatcom County may lease or rent any county real or tax title property and its appurtenances. Such leases may be entered into pursuant to public bid, listing with a licensed real estate agent or application from private parties. In making such lease of county real property and tax title property, the county may lease or reserve any rights to timber, minerals, or other resources on any land owned by the county separate and apart from the land in the same manner and upon the same terms and conditions as provided in this chapter for the sale of real property.

Any lease or rental agreement executed under the authority provided herein creates a vested interest in a contract binding upon the county and the lessee. Prior to any lease or rental of tax title property the terms thereof must be approved by resolution of the board of directors of the school district which would, under state law, be entitled to share in the proceeds of the income received thereof at the time the agreement is executed. (Ord. 90-126 Exh. A (part)).

1.10.410 Lease review guidelines and lease approval.

The county executive shall have the authority to lease county real or tax title property; provided that, the property management committee shall establish written guidelines which shall determine when the county executive must refer a proposed lease to the property management committee for review and recommendation and to the county council for approval. Where property management committee guidelines require county council approval for a proposed lease, any decision on said proposed lease must be made by resolution after a public hearing. The notice of public hearing shall comply with Section 1.10.320. The resolution must indicate whether the lease should be submitted to public bid, listed through a licensed real estate agent or awarded by private negotiation with interested parties. (Ord. 90-126 Exh. A (part)).

1.10.420 Leasing – Public bids.

When the county council finds by resolution it is in the best interest of the public to lease property pursuant to mailed bids it shall give notice in a legal newspaper of general circulation at least once a week for three consecutive weeks, the last notice to appear not more than 10 days prior to the date of bid opening. The notice must contain both the street address, if available, and the legal description of the property, its estimated market value, and designate the day, hour and the place of the bid opening. The lease shall be awarded to the highest responsible bidder; provided, that whenever there is reason to believe that the highest acceptable bid is not the best rental obtainable, all bids may be rejected and the county council may call for new bids or enter into direct negotiations, to achieve the best possible rental. In determining “highest responsible bidder,” the following elements may be considered:

A. The character, integrity, and reputation of the bidder;

B. The previous and existing compliance by the bidder with the terms of other leases of county real property;

C. Such other information as may be deemed relevant to the decision to award the lease, including the uses to be made of the property. (Ord. 90-126 Exh. A (part)).

1.10.430 Application to lease – When required.

Private parties desiring to rent or lease county real or tax title property should submit an application to the county treasurer. When lease approval is required by the county council, the county treasurer may require a deposit in a reasonable amount to accompany all applications to lease. If the applicant is successful in leasing the property the deposit shall be credited toward the first month’s lease payment. If the applicant is unsuccessful in leasing the property the deposit shall be returned to the applicant unless the applicant fails or refuses to comply with the terms of the application or to execute the lease, in which case the deposit shall be forfeited to the county and shall be placed in the current expense fund. If the county council finds by resolution, subsequent to a public hearing, it is in the best interest of the public to lease the property to the applicant or other interested parties, a lease may be executed without being submitted to public bid. The notice of public hearing shall comply with Section 1.10.320. (Ord. 90-126 Exh. A (part)).

1.10.440 Lease terms.

County real and tax title property may be leased for a term of years and upon such terms and conditions as may be deemed in the best interest of the public. (Ord. 90-126 Exh. A (part)).

1.10.450 Rental adjustment requirements – Long term leases.

Any lease subject to approval by the county council which is for a term of longer than five years shall contain a provision requiring the lessee to permit the rental payments to be adjusted and fixed by Whatcom County every five years; provided, that, any lease may provide for more frequent readjustments. When the lease permits Whatcom County to adjust the rent, the county will give the lessee written notice of the adjusted rent, in accordance with the terms of the lease. The rent as adjusted shall take effect no sooner than as provided by the lease and then 30 days after date of said notice unless lessee, within 30 days following receipt of notice from Whatcom County gives written notice of rejection of the adjusted rent. If the lessee and the county cannot agree upon the rental adjustment, the rent for the period will be adjusted by arbitration. The lessee and the county will select one disinterested arbitrator each, and the two selected arbitrators will select a third. If the two arbitrators have not selected a third arbitrator within 30 days after the selection of the last selected of the two, either the lessee or the county may apply to the presiding judge of the Superior Court in Whatcom County for the appointment of a third arbitrator. Each arbitrator will be a member of the American Institute of Real Estate Appraisers, or of the Association having equivalent ethical and professional standards. The three arbitrators will determine a fair rent for the premises based upon the estimated market value of the property, as previously defined. The decision of a majority of the arbitrators will bind both lessee and the county. At the conclusion of the arbitration, the arbitrators will submit written reports to the lessee and the county. The cost of the arbitration will be divided equally between the lessee and the county. (Ord. 90-126 Exh. A (part)).

1.10.460 Administration of leases.

Each department shall be responsible for administrating all leases of county real or tax title property for which it is custodian. (Ord. 90-126 Exh. A (part)).

1.10.470 Property management committee review of leases.

Whatcom County may lease county property when it is in the best interest of the county and its residents. The property management committee, along with the appropriate departmental custodian, shall review and make recommendations to the county executive when property is to be leased for over three years. (Ord. 95-048).