To: HONORABLE MAYOR AND From: Jose Obregon

CITY COUNCIL

Subject: SEE BELOW Date: July 23, 2003

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

SNI AREA: various

SUBJECT: SEALED BID AND PUBLIC AUCTION OF THIRTEEN (13) POTENTIALLY SURPLUS CITY-OWNED PROPERTIES

RECOMMENDATION

Adoption of a resolution: (1) declaring thirteen (13) parcels of City-owned property located in Council Districts 3, 4, 5, 6, 9, and 10, respectively, surplus to the needs of the City; and (2) setting the time and date for the opening of sealed bids and an oral auction of the thirteen properties for 7:00 p.m., Monday, October 20, 2003.

BACKGROUND

Municipal Code Section 4.20.20 permits the City Council to declare City-owned property surplus to the needs of the City and to authorize the sale by auction to the highest bidder, if: 1) that property is neither needed for, nor adaptable to, municipal purposes; and 2) the public interest would be served thereby. In order to determine the current usefulness or adaptability of surplus parcels to City purposes, City Departments were polled over a year ago to determine if there was any facility or operational need for the subject parcels. There were no responses indicating a need for any of these parcels.

ANALYSIS

The thirteen (13) parcels are all roughly rectangular in shape. Each of these parcels is either greater in size than 5,000 square feet or independently developable. The parcels have all been offered, as required by California Government Code Section 54222, to one hundred fifteen (115) low and moderate-cost housing developers, public schools, and park and open-space

developers for their consideration. None of the 115 entities submitted a bid on any of these subject parcels.

A list of the thirteen properties and maps illustrating all thirteen of the subject properties’ specific locations are attached as Exhibits A and B.

PUBLIC OUTREACH

Not applicable

COORDINATION

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

COST IMPLICATIONS

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 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	Other Revenue	N/A	N/A	N/A	N/A	N/A

CEQA

Exempt

JOSE OBREGON

Director of General Services