HomeMy WebLinkAbout01/20/2009, C2 - SALE OR LEASE OF CITY PROPERTY Council 1-20-09
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CITY O F SAN LUIS O B I S P O
FROM: Bill Statler, Director of Finance&Information Technology
SUBJECT: SALE OR LEASE OF CITY PROPERTY
CAO RECOMMENDATION
Adopt a resolution setting policies for the sale or lease of surplus property.
DISCUSSION
Background
In November 2008, City voters approved an amendment to Section 906 of the City Charter that
provides for Council adoption by ordinance or resolution of"policies and procedures that shall
be applicable to the sale or lease of City property."
Prior to this amendment, Section 906 read as follows in its entirety:
The following regulations shall be applicable to City-owned property: No sale or lease of real
property nor any sale of personal property of a value in excess of one hundred dollars ($100.00)
nor any lease of personal propertyfor a period exceeding three (3)years shall be authorized by
the Council except by resolution passed by the affirmative vote of three-fifths (3/5) of all the
members of the Council.
As reflected above, the prior Charter provisions did not include detailed policies or procedures
for the sale or lease of City property; rather, they simply set forth when Council approval was
required to do so.
Recommended Policy
As discussed previously with the Council, during the 2009-11 Financial Plan period we plan to
return to the Council with a comprehensive update to the City's Property Management Manual,
which provides detailed policies and procedures for the sale and lease of real property.
On the other hand, up-to-date policies and procedures for the disposal of surplus personal
Drop e (like vehicles, computers and office furnishings) are included in the City's Information
Technology Policies and Procedures Manual (surplus computer equipment) and Financial
Management Manual(vehicles and other personal property).
However, both of these documents reference the prior Section 906. Accordingly, since we are
currently without any similar policy guidance, we recommend simply adopting by resolution the
provisions previously set forth in the Charter, with one exception: the $100 amount set forth
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Sale or Lease of City Property Page 2
previously in the Charter was adopted in May 1955 and we recommend updating this amount to
account for the passage of time since then. Adjusting for increases in the U.S. Consumer Price
Index (All Urban Consumers) since then, $100 in May 1955 was worth $796 in November 2008.
For ease of administration and looking towards the future, we recommend setting this amount at
$1,000.
FISCAL IMPACT
There are no fiscal impacts.
ALTERNATIVES
Defer adoption of any policies at this time. The Council may wish to defer adopting any
policies at all at this time, pending a more comprehensive review of the Property Management
Manual for real property or other policies currently in place for personal property. However, any
such review will take significant time and effort to complete. Accordingly, we do not
recommend this approach, since there are currently no policies in place at this time regarding
authority for sale or.lease of City property; and adopting the prior policy, with an adjustment for
the passage of time since 1955, is a straightforward and simple solution without any obvious
downsides, at least as an interim measure.
ATTACHMENT
Resolution setting policies for the sale or lease of surplus property
GAMANUALS\Property Management\2009 Disposal of Surplus Property\Council Agenda Report, 1-20-09.doc
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RESOLUTION NO. (2009 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
SETTING POLICIES FOR THE SALE OR LEASE OF CITY PROPERTY
WHEREAS, in November 2008, City voters approved an amendment to Section 906 of
the City Charter that provides for Council adoption by ordinance or resolution of policies and
procedures that shall be applicable to the sale or lease of City property; and
WHEREAS, the Council desires to adopt policies governing authority for the sale or
lease of City property that are similar to those in that were place in the City Charter prior to
November 2008, except for an adjustment in the amount to account for the passage of time.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows: No sale or lease of real property nor any sale of personal property of a value
in excess of one thousand dollars ($1,000.00) nor any lease of personal property for a period
exceeding three (3) years shall be authorized by the Council except by resolution passed by the
affirmative vote of three-fifths (3/5) of all the members of the Council.
Upon motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted on January 20, 2009.
David F. Romero, Mayor
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jo P. Lowell, City Attorney
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