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Home My WebLink About06-10-2014 PC Barasch.pdfV) f COLTNCILMEFT7"(-" - . Li ITEMNO.: . I f e 4T '1106 49ff CIV Cn-n� . �t-ff ef 4� V� i• zip �;0 3 ... "T 1� rid �'j c- frrv� -1 /1 vC) I A y Am t �s J Zj2. FTII -57t,r,)" 64 e( Gr Chu j ��4�� ®✓1 /�,�� pay "Mo. 4 r Ar / V( Z- � � .. �� _:�!VR- • fir. � � � - -� .. �"�. _ _ � �� 1 - �� 4 ys i J �'� � - x t r• �� r�., .� �� '�r� � �T � a w �� T..ta � �- � _ - .,h �, � ,,�. � ,� _. ,� �,�. �� , � ,..r�� ; � � z .* i 1 �' c 4'? � � �� ' •, � - f w. �� f� K �07- - �'/�� -•��( �'� �'�Gl G�"�' J � nor �"r� �aCa6e S�%� j 2 AL 4 loaf " y 1 ar' i Tr { -• ^I�f � • r'"" yr; - �� y � a r - ry .� a _ , Yom. t«ya City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 -3249 (805) 781 -7102 From: Codron, Michael Sent: Wednesday, August 29, 2012 1:38 PM To: Grimes, Maeve Cc: Lichtig, Katie; Mattingly, Carrie; Bourbeau, Charles Subject: Property Management Information for Candidates Importance: High Hi Maeve, A candidate recently asked the following questions regarding City property management policies and practice. Please forward this e -mail, and the attachment, to all of our candidates. Thanks! 01: How do we track the cost of maintenance of City -owned property over time? Answer: Presently the City of San Luis Obispo does not track exact maintenance costs for all of its properties in a single location. Maintenance costs for buildings, vehicles, open space lands and other City assets are presently tracked within the budget of each responsible operating program. The City is currently in the process of implementing an asset management system database, called Cityworks, which will allow the organization to track the maintenance costs of all its assets over time. 02: Have we performed any analysis with that information that would allow us to evaluate those costs (e.g. are they reasonable expenditures, are costs consistent with expectations, are we prepared for growing costs as our properties age)? Answer: The city routinely assesses its properties through various qualitative means (staff, property users feedback, etc.), and uses long -term staff experience and expertise related to determining expectations and appropriate expenditures. These efforts are conducted routinely for the properties and other assets that the City actively manages as part of its operating program budgets (for Instance, Fleet Maintenance has very detailed information regarding a variety of costs associated with maintaining City vehicles). However, Cityworks is expected to provide staff with a tool for a higher level of analysis and will allow for improved planning and decision- making regarding property maintenance costs across the entire organization. Q3: Have we evaluated City -owned property to determine if any properties are surplus? Answer: As part of budget balancing efforts over the past several budget cycles staff has been asked to evaluate the City's inventory of property to determine if disposal of surplus property might be an effective way to address potential one -time budgetary needs. During this process, no properties have been identified as surplus. Q4: What are our policies and procedures relating to disposal of surplus property? Answer: Attached, please find Section 475 of the City's Financial Management Manual, which includes our property acquisition and disposal policies and procedures. Michael Codron Assistant City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 (805)781 -7112 office (805)540 -0767 cell mcodron @slocity.org LL co cc Y r- r4 Ln W a 22 "D (0 (D co 0 a m IL w 0 Xm CL 00 7�9 P3 CL 00 as cr) IFS C14 O O :F; C13 CL Q) CL W 0 CL 0 IL cr) IFS C14 O O Section 475 REAL PROPERTY ACQUISITION AND DISPOSAL POLICY TABLE OF CONTENTS A. INTRODUCTION 1 Purpose and Objectives 1 Management Strategy 2 Responsibilities 2 State and City Requirements 4 B. PROPERTY ACQUISITION 6 Purchase 6 Rents, Leases and Management Agreements 6 C. PROPERTY DISPOSAL g Sales and Long -Term Leases g Leases of City -Owned Buildings 10 Right -of -Way 13 APPENDIX 14 City Charter: Article IX, Section 906: Sale or Lease of City Property 14 Resolution No. 10052: Policies for the Sale or Lease of City Property 15 Adopted by the Council on May 18, 2010 (Resolution No. 10175) Section 475 -A INTRODUCTION PURPOSE AND OBJECTIVES Purpose The purpose of this policy is to set forth responsibilities and general strategies for the acquisition and disposal of real property, whether by sale, lease or via grants, donations, gifts, dedication or exchange. This policy does not address maintenance and operations of City real property. These are covered in other policy documents that are more focused on operations. For example, the City prepares detailed Conservation Plans for each of the City's open space areas, such as Bishop's Peak, Cerro San Luis, Irish Hills Natural Reserve and Johnson Ranch, which include detailed management plans for maintenance and operations. Likewise, the City's Water and Wastewater Management Plans also address maintenance and operations of the real property used in delivering these services such as treatment plants and reservoirs. It also does not address City "personal property," such as vehicles or computers. For example: detailed policies and procedures for the acquisition, disposal, operations and maintenance of the City's fleet are comprehensively set forth in the City's Fleet Management Policy (Section 405 of the Financial Management Manual); and detailed policies and procedures for the acquisition, disposal, operations and maintenance of the City's information technology assets, such as servers, printers, computer workstations and software, are provided in the City's Information Technology Policies and Procedures Manual. Lastly, this policy supplements provisions regarding the acquisition and disposal of real property that may exist in other City policy documents: unless there are direct conflicts, it does not replace them. Objectives The goal of this policy is to provide a framework for the acquisition and disposal of City real property that assures these actions: 1. Advance City plans, policies and goals, such as the General Plan (which consists of eight elements: Land Use, Circulation, Housing, Parks & Recreation and Conservation & Open Space, Noise, Safety and Water & Wastewater); Physical Concept Plan for the City's Center (Downtown Plan); Bicycle Plan; Short-Range Transit Plan; Access and Parking Management Plan; and Financial Plan and Budget. 2. Provide effective stewardship of City assets. 475 -1 Section 475 -C PROPERTY DIS- + The consideration of selling or leasing City property may arise from the City's initiative to do so or may be in response to interest by others. The guidelines below cover short-term leases of City property as well as long -term leases or fee -title sales. SALES AND LONGTERM LEASES Sales Versus Long -Term Lease In most cases, the sale or long -term lease of City real property will have a similar practical effect: the use of City property by others for a very long time. As such, as set forth below, the basic process for the sale or long -term lease of City property will be same. The decision on whether the City goals will be better met through sale or long -term lease will be made by the Council on a case -by -case basis. Key factors to be considered include: 1. Which option represents the best financial return to the City? 2. Are the City's fiscal goals at the time best met with one -time proceeds from the sale or from a long -term income stream? For example, if the disposition is directly linked to the funding of another capital project, such as the acquisition or construction of a replacement facility, then sale may make the most sense. Does the City have a long -term policy, project, program or proprietary interest in how the property is used? In this case, a long -term lease may make the most sense. 4. Is the property already fully developed, undeveloped or under- developed? If developed, was it intended to be use as leased space? Are there limiting factors based on how the property was originally acquired or its initial intended use, such as grants, enterprise funds or donations) that would favor long -term leasing over direct sale? 6. What is the appropriate lease term? Depending on the circumstances, the Council is hereby authorized under this policy to enter into a lease for up to 99 years. Terms up to 99 years would be appropriate for leases where the intent, from a use and developer financing perspective, is intended to mirror a sale; but for the reasons outlined above, the City desires to retain fee - title. In most cases, the decision will be a balancing of competing interests that can best be weighed by the Council based on the circumstances at the time. Process: Determined on Case -by -Case Basis The City disposes of property infrequently and the most appropriate process will vary in each case depending on the circumstances. The guidelines below are intended to provide the City with a framework for assessing the best approach on a case -by -case basis. It is not intended to 475 -8 Property Disposal limit the approaches available to the City: the overarching principle that should always apply is using an approach that will best accomplish the City's objectives given the circumstances at the time. As outlined below, there are five basic approaches that the City could take in determining the best long -term use of City property by others: request for proposals, broker services, exclusive negotiations, competitive sealed bids or auction (or a combination of these approaches), which will be determined by the Council on a case -by -case basis depending on the circumstances. 1. Request for Proposals (RFP). This approach makes the most sense when the City is initiating the sale or long -term lease of City property. It provides an opportunity to clearly articulate the City's policy goals and the general terms and conditions under which it will select the successful proposal. However, even with an RFP process, extensive negotiations are likely to follow the finalist selection. 2. Broker Services. This approach makes the most sense for sales when the City is initiating the sale; the goal is primarily a financial one; and the conditions of the sale are straightforward. The sale of the prior Headquarters Fire Station at Pismo and Garden Streets after the construction of the replacement Fire Station No. 1 at Broad and Santa Barbara in the mid- 1990's is an example of where listing the property with a broker is likely to be the best option. Exclusive Negotiations. This approach makes the most sense when considering the sale or lease in response to a development proposal by others. The following factors support this approach: a. The City receives a written request from a proposer that sets forth its conceptual project and why it believes that exclusive negotiations are in the City's best interest. b. The proposer owns or controls a majority of the privately -held property adjacent to the intended area to be developed that is integral to the proposed development and required for successful implementation of the project. In this case, the project could not occur without the developer's property and no other developer could make a similar proposal. c. The proposal involves an exchange of City -owned property with the developer /property owner. In this case, the project could not occur without the developer's property and no other developer could make a similar proposal. d. There is a clear link to the development proposal and accomplishment of significant City goals, plans or policies. e. The proposer has a demonstrated record of completing highly successful projects in the City or similar communities. f. Other circumstances where it is clearly in the City's best interest in achieving major policy objectives to enter into exclusive negotiations. 475 -9 Property Disposal When this approach is used, the City will enter into a formal Exclusive Negotiating Agreement which will be considered at a public meeting and clearly sets forth the terms and conditions of the negotiating period. 4. Competitive Sealed Bids. This approach makes the most sense for sales when the City is initiating the sale; the goal is primarily a financial one; the conditions of the sale are straightforward; and the City believes that it can successfully market the sale without outside professional assistance. Auction. This approach is typically used for delinquent tax sales or forfeited assets. Accordingly, it is likely to be rarely used by the City. LEASES OF CITY -OWNED BUILDINGS AND REAL PROPERTY The following guidelines apply to leases of City-owned buildings to outside parties. Leases with Non - Profit Organizations 1. Requests for the long -term use of City property by non - profit organizations should generally follow the same review procedures as the sale or lease of City property by private for - profit entities. 2. The proposed use should be consistent with the goals and objectives of the City's General Plan and not conflict or preclude any existing or planned City use. 3. Any development or operations directly related to the proposed use should have a clear and measurable community benefit in alignment with City goals, policies and plans. 4. Any lease agreements for the use of City property by non - profit organizations that charge a less than market rate for the City property should include a provision for community access and/or City use, or operate in close partnership in the delivery of City services. 5. Lessees will be responsible for all property related use taxes that may be assessed. Long -Term Uses 1. Buildings permanently intended for non - residential uses (such as retail or office) and located on land zoned for those uses a. The City may use the services of a real estate agent or broker in advertising, locating and managing the leases. This selection will be made in accordance with the City's purchasing policies. The net difference between the manager's fees and the rents collected shall accrue to the City. b. For -profit entities should pay comparable market rents. Below - market rates may be considered for non - profit organizations in accordance with the guidelines above. 475 -10