Sacramento Municipal Code Ch. 3.68 Leases of City-Owned Real Property

As used in this chapter, the term "lease" shall include, where appropriate in the context, a sublease. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.040)

Except as provided in Sections 3.68.110 and 3.04.010, all leases authorizing occupancy of city property for a period of more than six months shall be awarded to the highest responsible bidder. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.041)

For any lease authorizing occupancy by the lessee for a period of more than six months of city property, the city shall prepare an invitation to bid, which shall include a summary of the terms and conditions of the lease sufficient to enable persons to bid solely on the basis of rents to be paid to the city. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.042)

An advertisement for bid shall be published at least once a week for two consecutive weeks. The published notice shall state where bid forms may be obtained, the time and place for the receiving and opening of sealed bids, and shall describe, in general terms the lease to be granted. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.043)

All bids shall be presented under sealed cover. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.044)

Whether or not bids are opened exactly at the time fixed in the public notice for opening bids, a bid shall not be received after that time. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.045)

Any bid may be withdrawn at any time prior to the time fixed in the public notice for the opening of bids but only by written request filed with the city manager. The request shall be executed by the bidder or by an authorized representative. The withdrawal of a bid does not prejudice the right of a bidder to file a new bid prior to the date and time set for the opening of bids. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.046)

On the day named in the public notice the city clerk shall publicly open the sealed bids. The council may award the lease to the person then determined to be the highest responsible bidder. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.047)

A failure on the part of the successful bidder to sign and deliver the lease within thirty (30) days of receipt thereof and to provide the city with any bond and any evidence of insurance required thereunder may be treated as a refusal to execute if the city so elects. If the council deems it is in the best interest of the city, it may, on the refusal or failure of the successful bidder to execute the lease, award it to the second highest responsible bidder.

If the second best responsible bidder fails or refuses to execute the contract, the city may likewise award it to the third highest responsible bidder. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.048)

If the council deems that the acceptance of any bid is not in the best interest of the city, it may reject all bids and advertise for new bids or proceed as provided in Section 3.68.110. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.049)

If the council finds that such action is in the best interest of the city, it may enter into a lease without bidding when one or more of the following conditions exist:

A. The bid process as prescribed in this chapter has failed to produce a highest responsible bidder.

B. The city proposes to lease the property to another governmental agency.

C. The city proposes a ground lease for a term in excess of twenty (20) years where the lessee, as a condition of the lease, is required to construct facilities on the leased premises having a value in excess of one hundred thousand dollars ($100,000.00), and these facilities will become the property of the city upon termination of the lease.

D. A firm and complete written offer for lease has been presented by or on behalf of a prospective lessee or sublessee, wherein the rent specified is at or above the fair market rate for comparable, similarly situated property, as determined by the real property supervisor.

E. The city proposes to lease the property to a nonprofit taxexempt community civic organization with a membership comprised predominantly of persons residing in the city, and

1. The firm term of the lease shall not exceed ten (10) years.

2. The resolution approving the lease shall contain the following:

a. The reason for leasing such real estate;

b. A description of the real estate to be leased;

c. The document number of a copy of the lease filed in the office of the city clerk.

F. The council finds and determines that special circumstances make the use of the bid procedure inappropriate. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.050)

The council may by resolution approve the amendment of any lease, or may, in the initial lease agreement, authorize the city manager to enter into minor lease amendments, provided that the amount of the expenditure or income resulting from the amendment is less than $250,000. (Ord. 2020-0013 § 17; Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.051)

Real property acquired by the city for future public works projects may be leased without competitive bidding if each of the following conditions exist:

A. The prospective lessee was the occupant or tenant of the property at the time of its acquisition by the city; and

B. The tenancy will be on a month to month basis and will not exceed twenty-four (24) months.

The director of public works is hereby authorized to negotiate and execute on behalf of the city all lease agreements entered into pursuant to this section. (Ord. 2000-017 § 2(k)(ii) (Exh. C); Ord. 2000-013 § 1; prior code § 12.02.052)