4.84.030 - SALE PROCEDURE
The following procedures and requirements shall apply to property sold as surplus by the City: A. Determination of Value/Minimum Acceptable Price. 1. If the City has a sufficient and acceptable appraisal of the Subject Property, as determined by the Committee, no additional appraisal shall be required unless some other reason indicates that such should be obtained. 2. If the Committee determines that no sufficient and acceptable appraisal is available, the Committee shall choose one of the following 3 types of appraisals to be conducted by an appraiser: a. Limited opinion of value, b. Short form appraisal report, or c. Full narrative appraisal report. All interested parties shall be notified and advised of the cost of obtaining an appraisal. The party that becomes obligated to purchase the Subject Parcel, whether by sealed bid, auction or negotiated sale, shall be obligated to reimburse the City 50% of the cost of the appraisal no later than at closing. 3. Whether surplus property is to be disposed of by sealed bid, auction or negotiated sale, interested parties shall be advised that the minimum acceptable price shall be the value determined by the sufficient and acceptable appraisal plus reimbursement of 50% of the cost of obtaining said appraisal (as required by 4.84.030 A. 2, above). B. Processes/Earnest Money/Time to Closing. 1. Disposition by Sealed Bid. Where a Subject Parcel is sold by sealed bids, any and all bids submitted must be accompanied by a bid deposit in the form of a cashier check payable to the City Finance Director in the amount of $5,000. Such deposit accompanying the successful bid shall be deposited into escrow until closing on the purchase of the Subject Parcel and payment of the remaining amount of the purchase price shall be made within 30 days. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become non-refundable and may be retained by the City as liquidated damages and not as a penalty, since the calculation of actual damages due to time lost, transaction expenses and etc. will be difficult, if not impossible, to accurately calculate (such damages, as just defined, being referenced hereafter as “Liquidated Damages”); provided, however, that the purchaser may, at his option, deposit an additional $5,000 extension fee (hereinafter “Extension Fee”), in which case his time to make full payment shall be extended for 1 additional 60 day period. In the event full payment is not made by the conclusion of the additional 60 day period, an additional $1,000 may be retained by the City from the Extension Fee as Liquidated Damages relevant to the additional lost time and expense. The remainder of the Extension Fee shall be returned to the purchaser. The City Council reserves the right to waive any irregularities in the bid process. 2. Disposition by Auction. Where property is sold at auction, the prevailing bidder must immediately tender a cash deposit or certified check for deposit into escrow as earnest money to the City Finance Director in the amount of $5,000. Payment of the remaining amount of the purchase price shall be made within 30 days. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become non-refundable and may be retained by the City as Liquidated Damages; provided, however, that the purchaser may, at his option, deposit an additional $5,000 Extension Fee, in which case his time to make full payment shall be extended for 1 additional 60 day period. In the event full payment is not made by the conclusion of the additional 60 day period, an additional $1,000 may be retained by the City from the Extension Fee as Liquidated Damages relevant to the additional lost time and expense. The remainder of the Extension Fee shall be returned to the purchaser. 3. Disposition by Negotiated Sale. Where property is sold by negotiated sale, the purchaser shall deposit earnest money into escrow in the amount of $5,000 within 3 business days of execution of a purchase and sale agreement for the purchase of the Subject Parcel. Payment of the remaining balance of the purchase price shall be made within 30 days, unless otherwise specified in the purchase and sale agreement. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become non-refundable and may be retained by the City as Liquidated Damages; provided, however, that the purchaser may, at his option, deposit an additional $5,000 Extension Fee, in which case his time to make full payment shall be extended for 1 additional 60 day period. In the event full payment is not made by the conclusion of the additional 60 day period, an additional $1,000 may be retained by the City from the Extension Fee as Liquidated Damages relevant to the additional lost time and expense. The remainder of the Extension Fee shall be returned to the purchaser. C. Notification of Sale of Surplus Property. In the event the Subject Parcel is to be disposed of by sealed bid or by auction, the following notification procedures shall be followed: 1. A notice of the City’s intent to dispose of the Subject Parcel shall be conspicuously posted on the property no less than 2 weeks prior to the date set to commence accepting bids or the date set for the auction. 2. A similar notice shall be posted on the bulletin board at City Hall. 3. Notice shall be published in the City’s official newspaper no less than once each week in 2 consecutive weeks preceding acceptance of sealed bids or the public auction. All notices shall include a description of the Subject Parcel, the procedure by which the Subject Parcel is to be disposed of, any earnest money deposits which must be made (in accordance with Section 4.84.030 B. 1 through 3) and the minimum price that will be accepted. D. Form of Conveyance. All conveyances shall be made by quitclaim deed. E. Closing Costs. All closing costs, exclusive of deed preparation, shall be borne by the purchaser including, but not limited to, survey work, title insurance if desired, recordation costs, brokerage and escrow fees if applicable, and the costs set forth in subsection 4.84.030 A. 3. [Ord. 2003-11-072]
