COUNCIL DISTRICT: 3, 4, 5, 6, 9, & 10

SNI AREA: various

SUBJECT: RESULTS OF SEALED BID AND PUBLIC AUCTION OF NINE (9) SURPLUS CITY-OWNED PROPERTIES & SALE TO HIGH BIDDERS.

RECOMMENDATION

1) That the City Council approve the report on the results of the sealed bids and oral auction of nine (9) surplus City-owned properties held on Monday, October 20, 2003, accepting the high bids for each property; and

2) Authorizing the Director of General Services to execute such documents as are necessary to complete the sales of said properties.

BACKGROUND

On August 12, 2003, the City Council declared nine (9) City-owned properties surplus to the needs of the City and authorized their sale by auction to the highest bidder. On September 19, 2003, over 450 packages of information were sent to all persons and entities who requested information regarding the sale of these City-owned properties. All packages included the Notice of Intended Sale, Bidding and Auction Information, a property information sheet, 2 maps of each property, and a separate sealed bid form for each of the 9 properties. Only those interested parties who sent in a sealed bid and a twenty thousand dollar ($20,000) deposit for a specific property will be allowed to participate in the Oral Auction for that property.

ANALYSIS

A supplemental memo will be provided after Sealed Bids are opened, an Oral Auction has taken place, and the high bids for each property declared on October 20, 2003. A Sales Agreement will be prepared for, and signed by, each high bidder. Each high bidder will have already deposited twenty thousand dollar ($20,000) Cashier’s Check with the Department of General Services representative.

PUBLIC OUTREACH

The Notice of Intended Sale was published for three consecutive printings in the Post Record, and over 450 information packages were printed and mailed out in September.

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.

COST IMPLICATION

The potential sale of any or all the subject properties is in line with the Mayor’s Budget Strategy Expenditure Control Principal No. 4 by eliminating City Maintenance obligations and liability. The sale of any of these City-owned properties will increase revenue to the City on a one-time basis. The City’s cost for the sale of the property will consist of printing and mailing costs, and staff-time to prepare the bid packages and hold the public auction.

BUDGET REFERENCE

Fund

Appn.

Appn. Name

RC #

Total

Appn.

Amt. for

Contract

2003-04

Proposed Operating

Budget Page

Last Budget Action

(Date, Ord. No.)

001

8130

Sale of Real Property

000000

Revenue to General Fund

N/A

CEQA

Exempt, PP-00-02-003.

JOSE OBREGON

Director of General Services