HomeMy WebLinkAboutReso 2005-115 - Council Policy 1901
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RESOLUTION NO. 2005-115
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AMENDING COUNCIL POLICY 1901 TITLED
"DISPOSITION OF CITY-OWNED REAL PROPERTY."
WHEREAS, in order to provide consistency in the disposition of City-owned Real Property and to
conform with other City Council Policies governing Real Estate;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that City
Council Policy 1901, Disposition of City Owned Real Property, is hereby amended in its entirety as attached.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular
meeting of the City Council on the.6th day of September, 2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Dickerson, Murray, Pohlmeyer, StegaU, and Mathena
None
None
None
Attest:
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Form Approved:
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Richard A. Duvernay, City Atto ley
Connie ,Strohmayer ;/City
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT
RESOLUTION
NUMBER
POLICY EFFECTIVE
NUMBER DATE
PAGE
Disposition of City-Owned Real Estate
94-142
1901 5-17-94
10f3
BACKGROUND
The City of Redding is the owner of real property which is used for various municipal purposes. As
public service needs change, the requirements for these properties may be revised, and on occasion,
certain parcels may be found to be in excess ofthe City's current need. When property is classified as
surplus or excess property, disposing of that property to maximize the benefit to the tax payers is
essential.
PURPOSE
It is the purpose of this policy to provide guidance for the disposition of City-owned excess or surplus
real estate.
POLICY
It is the City's policy to manage its real estate assets, in accordance with Policy 1902, so that the
municipal needs which rely on these assets may be properly implemented. Policy 1902 establishes the.
methods and processes by which properties are classified as excess or surplus. This policy provides
guidance on the actual disposition of such property. All final decisions on the disposition of City-
owned real estate is reserved to the City Council.
A. Determination on Value of Land
The City shall optimize the benefit of the disposition of City-owned excess or surplus real estate based
on relevant factors including: (1) the value of the property based on an appraisal or brokers opinion
of value, as appropriate, which is no more than 6 montl,1s old at the time the sales agreement is
presented to the City Council, except that an appraisal will not be needed on property that does not
exceed $10,000 in value; (2) prevailing economic conditions and recent applicable trends, and (3) any
special benefits to accrue from the sale, lease or exchange.
B. Disposition
The City of Redding may use any of the following methods or combination thereof to maximize the
benefit to the taxpayers. Disposition methods may include:
. Auction
. Negotiated Sale
. Exchange
. Lease
. Request for Proposal
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT
RESOLUTION
NUMBER
POLICY EFFECTIVE
NUMBER DATE
PAGE
Disposition of City-Owned Real Estate
94-142
1901 5-17-94
20f3
Discounts will not be negotiated unless an extraordinary need or circumstance is recognized by City
Council resolution prior to negotiation, setting forth the amount of the discount and the justification
for it. The purpose of this is to demonstrate to the community that the City is not making a gift of public
assets.
Since it is generally not in the City's best interest for a property transaction to be negotiated in open
session, pursuant to Section 54956.8 of the Government Code, the pty Council may discuss either
approval, disapproval, or continuation for further negotiation or study any recommendation regarding
the disposition of City property in closed session. Any final action, however, shall occur in open session
and shall disclose the revenue from any sale or lease and the appraised value of the property involved.
Referral to Other Agencies
Before selling any surplus property, the City must comply with Government Code 54220 et seq. and
shall offer to sell surplus land to parks and recreation agencies or to local housing authorities as
applicable.
Payment for City Surplus Property
Sales of real property shall be on an all cash basis or on such other terms that in the discretion of the
City Council results in the optimum public benefit.
Use of Proceeds
Unless otherwise directed by the City Council, proceeds from sales or leases shall be assigned as
follows:
1. To enterprise accounts if the property was purchased using rate-payer funds;
2. To the General Fund account established by Council Policy No. 407; or
3. To other accounts or funds as required by law.
Costs Associated with the Disposition of Property
Unless otherwise directed, the costs associated with the disposition of surplus properties shall be
charged to the fund established by Council Policy No. 407. Funds for this purpose will be budgeted
as part of the normal budgeting cycle. If the property is owned by an account other than the General
Fund, the fund established by Council Policy 407 may be reimbursed for the costs associated with
disposing of surplus or excess property by the account or accounts which own the property.
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT
RESOLUTION
NUMBER
POLICY EFFECTIVE
NUMBER DATE
PAGE
Disposition of City-Owned Real Estate
94-142
1901 5-17-94
30f3
C. Broker Representation
Generally, the City shall represent itself in real estate transactions; however, the City may from time
to time authorize a brokerage agreement for the disposition of property. In such cases, the brokerage
fee shall be as specified in the agreement between the City and the broker. The selection of a real estate
broker to provide real estate services shall be subject to the City's adopted procurement procedures for
professional services.
In certain instances when a broker is not under contract with the City, the City, in its sole discretion,
may pay a real estate brokerage fee for qualified representation of a party leasing or purchasing City
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property ("broker participation"). In no case shall the broker participation exceed one-half of the
generally accepted local brokerage fee for the type of property being leased or sold. When the amount
of rental or purchase price offered are criteria for selecting a lessee or purchaser in competitive
situations, the selection will be based on the highest net rental or net purchase price, without taking into
account any brokerage fees involved in the competition/evaluation. When such broker participation
is permitted by the City, it shall be subject to all ofthe following:
· the party represented by the broker shall provide written certification that the broker represents
said party; and
· the broker shall provide written certification that broker is not an employee of said party; and
· the broker shall possess a valid California real estate broker license.
Amended September 6, 2005, by Resolution No. 2005-115