O2435City Council Meeting: August 13, 2013 Santa Monica, California
ORDINANCE NUMBER 2435 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING SANTA MONICA MUNICIPAL CODE SECTION 2.24.110 TO UPDATE
THE SALE OF REAL PROPERTY PROCEDURES FOR CITY OWNED PROPERTY
WHEREAS, the City's practices pertaining to the sale of real property were
originally codified in 1979 as Santa Monica Municipal Code section 2.24.110 ( "Section
2.24.110 "); and
WHEREAS, Section 2.24.110 outlines the requirements for the sale of City-
owned real property; and
WHEREAS, the existing procedures in Section 2.24.110 are outdated and do not
provide for sufficient flexibility to guarantee that the disposition process will produce a
result that is in the best interest of the City; and
WHEREAS, amending Section 2.24.110 will better align the City's practices with
current property disposition practices and will ensure opportunities to obtain outcomes
that are in the best interest of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1.Santa Monica Municipal Code Section 2.24.110 is hereby amended
to read as follows:
2.24.110 Sale of Real Property.
a. Declaration of Intent to Sell Real Property. The City
Council may declare, by resolution, its intention to sell City -owned real
property if it finds that the property is no longer needed for the purpose
acquired and that said property or title thereto is not needed for any other
public purpose. If Council determines that the property may be sold, it
shall authorize the City Manager to sell the property for a price equal to or
greater than the minimum price established by a current appraisal made
by a qualified real estate appraiser. However, notwithstanding the
foregoing, no appraisal shall be required when the City Manager
reasonably determines that a property's estimated value is less than
$70,000. The resolution of intent to authorize sale shall contain the
following:
(1) the reason for sale of the property;
(2) a description of the property to be sold;
(3) the findings that the property is no longer needed for the
purpose acquired or for any other public purpose;
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(4) a statement of the value of such property established by
an appraisal made by a qualified real estate appraiser or a
statement that the estimated value is less than $70,000; and
(5) designation of the competitive sales process to be used
for sale of the property.
b. Notice of Public Sale. Sale shall only be made after
publication in the official newspaper by two or more insertions of notice the
first of which shall be at least ten days before the time at which bids or
proposals are due.
C. Requirements for Sale by Bids or Auction. The following
procedure shall be used when City Council authorizes sale of City -owned
real property by bids or auction. Such sales shall be awarded to the
highest and best bidder. Bids shall be accepted until the time specified in
the notice of public sale. The City Manager or designee shall tabulate all
bids received pursuant to this section and shall present them to the City
Council and the Council shall make the award. The City Council may
reject any and all bids presented and may re- advertise in its discretion.
d. Requirements for Sale by Competitive Proposals and
Negotiation. The following procedure shall be used when City Council
authorizes sale of City -owned property by a call for competitive proposals
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and negotiation. Proposals shall be accepted until the time specified in
the notice of public sale. The City Manager or designee shall review all
proposals and may negotiate with any parties who submit proposals in
order to increase the final sales price, to reduce proposal contingencies,
and to ensure sufficient financial resources to complete the sale. Such
sales shall be awarded to the best proposer. The City Council may reject
any and all proposals and may re- advertise in its discretion.
e. Requirements for Competitive Sale by a Real Estate
Broker. The following procedure shall be used when City Council
authorizes sale of City -owned property through the use of a duly licensed
real estate broker. The broker must be selected in accordance with the
City's policies for hiring of consultants and applicable state and local laws
pertaining to conflicts of interest, and the broker must comply with notice
of public sale requirements. The broker shall advertise the property for
sale, accept offers for the property, and negotiate with potential buyers in
order to increase the final sales price, to reduce proposal contingencies,
and to ensure sufficient financial resources to complete the sale. The City
Council may reject any and all offers and may re- advertise in its discretion.
f. Sale without Publication. Sales of real property may be
made without advertising if the City Council, by a resolution adopted by at
least five affirmative votes, shall determine by such vote that to advertise
would be to no avail and would cause unnecessary expense and delay or
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would not be in the best interest of the City. If Council so determines, it
may authorize property to be sold by direct negotiation, exchange, sale to
an adjacent property owner, conveyance to government bodies, public
utilities or nonprofit organizations, or other appropriate method, as
authorized in the resolution of intent to sell City -owned property.
g. Approval of Final Sale. City -owned property shall be sold in
accordance with this Section. No real property shall be sold except by resolution
passed by an affirmative vote of five members of the City Council.
SECTION 2. Any provision of the Santa Monica Municipal Code or
appendices thereto inconsistent with the provisions of this Ordinance, to the extent of
such inconsistencies and no further, is hereby repealed or modified to that extent
necessary to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
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official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
am
Approved and adopted this 13th day of August, 2013.
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
i
Pam O'Connor, Mayor
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I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Ordinance No. 2435 (CCS) had its introduction on July 23, 2013,
and was adopted at the Santa Monica City Council meeting held on August 13,
2013, by the following vote:
Ayes: Councilmembers: Davis, Holbrook, McKeown, Vazquez, Winterer
Mayor Pro Tern O'Day, Mayor O'Connor
Noes: Councilmembers: None
Absent: Councilmembers: None
A summary of Ordinance No. 2435 (CCS) was duly published pursuant to
California Government Code Section 40806.
ATTEST:
Sarah P. Gorman, City Clerk