Title
Adopt a Resolution confirming the sale of County-owned real property improvements of two buildings located at 54692 Teresa Street, San Lucas, California, to Reyes Venegas for the negotiated purchase price of $410.
StaffReport
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution confirming the sale of County-owned real property improvements of two buildings located at 54692 Teresa Street, San Lucas, California, to Reyes Venegas for the negotiated purchase price of $410.
SUMMARY/DISCUSSION:
On July 31, 2012, the Board of Supervisors adopted Resolution 12-222, determining County-owned real property improvements of two buildings located at 54692 Teresa Street, San Lucas, California as surplus real property and no longer necessary for County or other public purpose and approving the Closed Bid Procedures and Transfer Agreement. These two buildings were to be sold "as is" to the highest bidder in a closed bid procedure. On July 31, 2012, the Board of Supervisors set the minimum bid price at $1,000. In accordance with the requirements of Government Code section 25526.5, a Notice of Intent to Solicit Bids for Sale of County Owned Property was posted in a public place for five working days prior to effecting the transfer.
On August 15, 2012, at 2:00 p.m., a closed bid procedure was conducted by the County Contracts/Purchasing Officer. Reyes Venegas was the only party appearing and submitting a bid for the Property Improvements and was declared the highest responsible bidder. The bid, supported with a Cashier's Check, was for $1,010. Upon confirmation of the sale of the Property Improvements by the Board, the Contracts/Purchasing Officer will execute and record a Quitclaim Deed transferring the Property Improvements to Reyes Venegas (Buyer).
During Agreement execution, the County required the Buyer to provide proof of insurance for both the Buyer and the Moving Company in order to provide greater protection to the County. The County is requiring that the Buyer provide a Certificate of Insurance from the period the Buyer takes title of the property until the time the property is severed from the land and in the hands of the house moving company. The house moving company has provided proof of insurance for its activities thereafter.
During Agreement execution, the Buyer requested the County pay for the Certificate of Liability insurance of up to $600. In order to make this deal cost effective for both the County and the Buyer staff recommends the Board of Supervisors consider and approve a negotiated purchase price of $410 that would enable the Buyer to meet the County's insurance requirements. Alternatively, the County could abate and demolish the buildings (estimated cost of $70,000) or direct staff to re-bid sale of the buildings.
As stipulated in the Transfer Agreement, Buyer is responsible for all fees for recordation of the Quitclaim Deed, and documentary transfer tax, within five (5) days of recordation. Said costs are not to exceed $500. Buyer also agrees that they will be acquiring Property Improvements in an "as-is" condition with all faults and conditions. Within sixty (60) calendar days of the Boards' confirmation of the sale, Buyer is responsible for the abatement of existing property improvements; securing all required permits; addressing any utility line interferences and preventing damage to existing trees on-site; securing of building moving services; removal of buildings to an alternate receiving site; and capping of existing utilities in accordance with all applicable Federal, State, and Local laws and regulations. Buyer must also submit to the County a work plan, to the reasonable satisfaction of County's Public Works Director, designed to ensure that all the tasks to be performed by Buyer under the Transfer Agreement will be lawfully performed by licensed (specialty) contractors (as may be required) with scheduled dates of completion five (5) business days before commencing any work or changes at the property.
OTHER AGENCY INVOLVEMENT:
The Resource Management Agency - Public Works coordinated with Monterey County Free Libraries (MCFL) and Contracts/Purchasing to duly advertise and conduct the closed bid procedure of the Property Improvements. The Office of the County Counsel approved the closed bid procedure, sale, and transfer process of the property as to form and legality.
FINANCING:
There is no financial impact to the General Fund. Upon Board confirmation of the sale of Property Improvements, the project budget will be increased by $410 to include the sale proceeds, such proceeds will go back into the project. The MCFL San Lucas Branch facility is funded with $246,680 Capital Funds and $350,000 donation from the Monterey County Free Library Foundation.
Prepared by: Florence Kabwasa-Green, Management Analyst II, (831) 755-4805
Approved by:
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Robert K. Murdoch, P.E., Director of Public Works
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Benny J. Young, RMA Director
Dated: March 15, 2013
Attachments: Resolution; Transfer Agreement; Quitclaim Deed; Government Code Section 25526.5; Location Map