Santa Ana Municipal Code § 2-706 Sale of real property—Procedure

Whenever the head of any department of the city shall determine that any personal property in his possession or under his jurisdiction is surplus and that there is no present or prospective use to which the city may put said property, he shall report that fact to the director of finance. The report shall contain a statement of the kind, nature, condition and quantity, and a brief description of such surplus property, shall state the location at which such property may be viewed, and shall give the names and addresses if possible of prospective purchaser if such information can be obtained by the department head.

(Code 1952, § 2610; Ord. No. NS-1288, § 1, 1-5-75)

Said surplus personal property report shall be kept on file in the office of the director of finance under the caption "Surplus Property Reports" and shall be open to the public for inspection. Any person interested in the purchase of any such property who leaves his name and address with the office of the director of finance shall be notified by mail of any sale of said property at least ten (10) days prior to the date of such sale.

(Code 1952, § 2610.1; Ord. No. NS-1288, § 2, 1-5-76)

Said reports of surplus personal property shall be made available for review by any department head of the City of Santa Ana, and no such sale shall be had if any other department of the city expresses a desire or need for such property for a city purpose.

(Code 1952, § 2610.2; Ord. No. NS-1288, § 3, 1-5-76)

Whenever the director of finance shall determine that sufficient surplus property, including scrap property and animals, has accumulated, he shall determine the method of disposition of said property, including using said property as a trade-in, accepting sealed bids for said property, sale by public auction, or any other method of disposition deemed acceptable by the director of finance. All such surplus property shall then be accumulated at a central location unless the director of finance grants an exception to this requirement and therein designates the property so excepted. Notice of such disposition 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 the department heads as prospective bidders, such notices to be published and mailed at least ten (10) days prior to date of sale.

(Code 1952, § 2611; Ord. No. NS-1288, § 4, 1-5-76)

If the director of finance determines that such surplus property shall be disposed of by auction, he shall designate the person to conduct the auction and the person to act as clerk, to make a record of bids and payments during said auction. The director may employ professional auctioneers and clerks who shall receive compensation solely out of the proceeds of the auction. All sales shall be for cash and the purchase price shall be paid forthwith upon the sale being declared by the auctioneer.

(Ord. No. NS-1288, § 5, 1-5-76)

Items of scrap, metal, paper, wood, etc., that have no value for the purpose for which they were originally designed but are useful only as salvage or scrap, may be sold by the director of finance at any time without public auction, upon the designation of said property as scrap by the head of the department possessing such material.

(Code 1952, § 2611.1; Ord. No. NS-1288, § 6, 1-5-76)

Whenever unclaimed property found, recovered or held by the police department shall accumulate to the point where the chief of police desires to dispose of the same, it may be sold after complying with the provisions of Section 2080.4 of the Civil Code of the state as the same now exists or may hereafter be amended, and provisions of this section shall not prevail insofar as they may be inconsistent with state statutes.

Such property must be held by the police department for at least three (3) months. After property has been held for the period prescribed above and accumulations are deemed adequate in number of items for the conduct of an auction, the property may be transferred to the purchasing division for sale to the public at public auction. Notice of such auction sale will be given by the purchasing and property control officer at least (5) days before the time fixed therefor by publication once in the newspaper publishing city legal notices.

After said notices are given, the sale shall be conducted by the purchasing and property control officer or, with the approval of the city manager, some other city employee or employed professional auctioneer. Property for which no bid is made at such sale may be given to a nonprofit charitable organization or destroyed as the purchasing and property control officer may direct.

If the purchasing and property control officer determines that unclaimed property transferred to his jurisdiction for sale is needed for a public use, he may retain such property and dispense with the provisions of this section pertaining to sale. The purchasing and property control officer shall thereafter account for such property as though it had been acquired by the city through regular purchasing procedures, with the exception that accountability for the use and disposition of unclaimed property transferred back to the police department for official public purposes shall become the responsibility of the chief of police.

(Code 1952, § 2612; Ord. No. NS-255, 6-3-57; Ord. No. NS-704, § 1, 1-6-64; Ord. No. NS-1251, § 1, 3-10-75; Ord. No. NS-2119, § 1, 4-1-91)

Any bicycles or toys, or both, in the possession of the police department which have been unclaimed for a period of at least sixty (60) days may, instead of being sold at public auction to the highest bidder pursuant to section 2-705, be turned over by the chief of police to the probation officer, to the welfare department of the county, or to any charitable or nonprofit organization which is authorized under its articles of incorporation to participate in a program or activity designed to prevent juvenile delinquency and which is exempt from income taxation under federal or state law, or both, for use in any program or activity designed to prevent juvenile delinquency.

(Ord. No. NS-2247, § 1, 5-1-95)

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 (1) percent 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 submit an oral bid provided that any bid may be disregarded which does not exceed the highest bid theretofore made by at least one (1) percent 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 (10) percent of the amount of his bid. The deposit may be in the form 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 (10) percent 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 (1) percent 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.

(Code 1952, § 2613; Ord. No. NS-128, § 1, 8-15-55; Ord. No. NS-1265, § 1, 8-4-75)

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 adjoining property and could be used by other persons only for the purpose of nuisance value to such owners of adjoining or abutting property. After such determination has been made as next hereinabove 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.

(Ord. No. NS-1265, § 2, 8-4-75)

Sales of real property shall be on an all cash basis with the following exception: Upon written recommendation of the city manager 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. Interest 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.

(Ord. No. NS-1265, § 2, 8-4-75)

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 contract shall specify the maximum commission to be paid if the property is sold, which said commission shall in no case exceed six (6) percent of the sale price on property improved with a habitable building and shall in no case exceed ten (10) percent on unimproved property. No personal liability shall attach to any agent of the city who signs any such contract on behalf of the city.

(Code 1952, § 2615; Ord. No. NS-256, § 1, 6-3-57; Ord. No. NS-1082, § 1, 6-21-71; Ord. No. NS-1265, § 11, 8-4-75)

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 invitation 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 (½) 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 and is represented by a licensed real estate agent or broker and the sale is made and completed, then the other one-half (½) 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.

(Code 1952, § 2616; Ord. No. NS-256, § 1, 6-3-57; Ord. No. NS-1265, § 5, 8-4-75)

The provisions in this article regulating the sale of surplus city personal property or the sale of city real property shall not apply to any sale of such property made to any city, county, city and county, state or federal government, or any political subdivision of any of them, or to any nonprofit public benefit corporation formed or controlled by the city, or to any sale which is exempted from such provisions by two-thirds (⅔) vote of the city council after a duly noticed public hearing, and such sales may be made upon a basis of direct negotiations without the necessity for public auction or competitive bidding, when the authority to so negotiate has been granted by the city council.

(Code 1952, § 2614; Ord. No. NS-128, § 2, 8-15-55; Ord. No. NS-1006, § 27, 4-6-85)

Upon written recommendation of the city manager, the council may authorize the exchange of any parcel of city-owned real property 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 article provided for.

(Ord. No. NS-1265, § 6, 8-4-75)