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HomeMy WebLinkAboutNS-1265ORDINANCE NO. NS- 1265 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 2-706 OF THE SANTA ANA MUNICIPAL CODE; ADDING SECTIONS 2-706.1 AND 2-706.2 TO THE SANTA ANA MUNICIPAL CODE; AMENDING SECTION 2-707 AND 2-708 OF THE SANTA ANA MUNICIPAL CODE; AND ADDING SECTION 2-710 TO THE SANTA ANA MUNICIPAL CODE, ALL PERTAINING TO THE SALE OF REAL PROPERTY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN' AS FOLLOWS: SECTION 1: That Section 2-706 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 2-706. Sale of real property - Procedure. After authorization by the council of the sale of a parcel of real property, a sale shall be scheduled and conducted by the director of public works or by his designated deputy. All sales shall be made to the highest bidder subject to final confirmation by the council. Notice that such sale is to be conducted shall be given by publication at least once in a newspaper of general circulation printed, published, and circulated in the city and by sending written notice to all persons who had requested notice and to all persons suggested by department heads as prospective bidders, such notice to be published and mailed at least ten (10) days prior to the date of sale. Sealed bids may be required or oral bids may be provided for. Sealed bids or written offers to purchase must be accompanied by a deposit of one percent (1%) of the amount of the minimum bid in the form of cash, or by cashier's or certified check. If oral bids are permitted, after any sealed bids are opened and any written bids are announced, any person present may sub- mit an oral bid provided that any bid may be disregarded which does not exceed the highest bid theretofore made by at least one percent (1%) of such highest bid. The successful bidder must deliver immediately following the declaration of sale, a written statement of his bid signed by the bidder together with an initial deposit of ten percent (10%) of the amount of his bid. The deposit may be in the f~rm of a personal check provided such check is replaced before the close of business on the following business day by cash or by cashier's or certified check. Failure to deposit such written statement of bid or said ten percent (10%) of the bid price in the manner stated may be considered a withdrawal of the bid. If a personal check is not replaced as required, a forfeit of one percent (1%) of the sales price, as stated in the written statement of the bid, shall be required. The purchase of the property may then be offered to the second highest bidder of record. SECTION 2: That the Santa Ana Municipal Code is hereby amended by adding a section, to be numbered 2-706.1, which said section reads as follows: Sec. 2-706.1. Same - Sale only to owners of adjoining property. Upon the written recommendation of the city manager, the council may determine that the property being offered for sale can have real value only to a certain owner or owners of adjoin- ing property and could be used by other persons only for the ORDINANCE NO. NS-1265 PAGE TWO purpose of nuisance value to such owners of adjoining or abutting property. After such determination has been made as next here- inabove provided for, the council may by direct negotiation, provide for the sale of the real property covered thereby, without compliance with the auction, public sale, or method of payment requirements in this article provided for. SECTION 3: That the Santa Ana Municipal Code is hereby amended by adding a section, to be numbered 2-706.2, which said section reads as follows: Sec. 2-706.2. Same - Method of payment. Sales of real property shall be on an all cash basis with the following exception: Upon written recommendation of the city mana- ger and approval by the council, a parcel of surplus real property may be sold on such credit terms as are deemed to be necessary in each case. After the required down payment has been made, the balance of the purchase price shall be secured by a note and deed of trust. The credit payment period shall not exceed fifteen (15) years from the date of execution of the trust deed. In- terest shall be at the prevailing rate in the community allowed by the Federal Housing Administration (FHA) as of the date of the public sale, but shall not include any FHA mortgage insurance premium. SECTION 4: That section 2-707 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 2-707. Same - Broker listing; maximum commission; non- liability of city agent. The city council, when it determines that any real property owned by the city be disposed of, may authorize the director of public works to execute a written listing contract to find bidders with a licensed real estate agent or broker, and may specify that said property be placed in multiple listing. Said listing con- tract shall specify the maximum commission to be paid if the pro- perty is sold, which said con~ission shall in no case exceed six percent (6%) of the sale price on property improved with a habit- able building and shall in no case exceed ten percent (10%) on unimproved property. No personal liability shall attach to any agent of the city who signs any such contract on behalf of the city. SECTION 5: That section 2-708 of the Santa Ana Municipal Code is hereby ~aended to read as follows: Sec. 2-708. Same - Payment of commission; division of commission. In the event an agent covered by the contract, as set out in Section 2-707, procures a bidder who submits the highest bid and to whom the sale is made and completed in due course, the commission provided in said contract shall be paid to said agent. In event an agent covered by the contract submits the highest written bid which conforms in all respects to the city's invita- tion to bid and the provisions of section 2-706, and an oral bid conforming to said requirements is made by a different bidder and results in the sale being made and completed to said different oral bidder, then one-half (1/2) of the commission originally fixed shall be paid to the listing agent who procured the original highest written conforming bid. If the successful oral bidder was procured ORDINANCE NO. NS- 1265 PAGE THREE and is represented by a licensed real estate agent or broker and the sale is made and completed, then the other one-half (1/2) of said commission shall be paid to such agent or broker. In cases where no listing contract exists and the successful bidder is represented by a licensed real estate broker, upon approval by the Council, a full commission will be paid to such broker under the following conditions: (1) The buyer's written or oral bid must be submitted by the broker, (2) the broker must be designated as such in the buyer's purchase offer or in the written statement of his bid, and (3) the sale to the buyer must be consummated. SECTION 6: That the Santa Ana Municipal Code is hereby amended by adding a section to be numbered 2-710 which said section reads as follows: Sec. 2-710. Exchange of real property. Upon written recommendation of the city manager, the council may authorize the exchange of any parcel of city-owned real pro- perty which has been declared to be surplus to the city's needs for any other real property, whether publicly or privately owned, for which the city has a public need. Upon such authorization, an exchange may be concluded by direct negotiation without compliance with the auction or public sale requirements in this artiC_le provided for. SECTION 7: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. SECTION 8: The Clerk of the Council shall certify to the passage and adoption of this ordinance and shall cause the same to be published in the official newspaper of the City of Santa Ana within fifteen (15) days after its adoption. SECTION 9: This ordinance shall take effect thirty (30) days from and after the date of its adoption. PASSED AND ADOPTED by the City Council of the City of Santa Ana at its reEular meeting held on the 4th day of Aug__~s~ , 1975. ATTEST: ~,ORENCE I. MALONE~ ORDINANCE NO. NS- 1265 PAGE FOUR STATE OF C~LIFOPaNIA ) COUNTY OF OPJkNGE ) ss. CITY OF S~NTA ANA ) I, FLORENCE I. MALONE, do hereby certify that I am the Clerk of the Council of the City of Santa Ana; that the fore- going Ordinance was introduced to said Council at its regular meeting held on the 21st day of July 1975, and was again considered by said Council at its regular meeting held on the 4th day of August , 1975, and was at said meeting passed and adopted by the following vote, to wit: AYES, COUNCII~4EN: Yamamoto, 0rtiz, Evans, Ward NOES, COUNCILMEN: None ABSENT, COUNCILM~N: Bricken, Garthe, Brandt Li~'I~F. NCI~ I. MALONI~ A~PROVED AS TO FOP~M: City Attorney