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