Item 6-G
Council Meeting: November 9, 1999 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Award Bid to Sell Residential Property Located At 1833 18th Street, Santa Monica, California, Bid #2771 and Authorize Staff to Negotiate and Execute a Contract and Any Related Documents for the Sale of the Residential Property
Introduction
This report recommends award of bid to sell residential property located at 1833 18th Street, Santa Monica, California for a total amount of $376,083.99.
Background
In 1985, the City purchased the property located at 1833 18th Street for $155,143 using federal Community Development Block Grant (CDBG) funds. For 10 years the property was leased to Ocean Park Community Center (OPCC) for operation as a youth shelter, known as Stepping Stone. In July 1995, OPCC notified the City that they no longer needed the property and ceased Stepping Stone operations.
The property, currently zoned R3, consists of a three-bedroom single-family residence with two single units located in the back. In August 1998, an appraisal was completed and the value of the property was estimated at $350,000.
On November 10, 1998, the Mayor and the City Council adopted a resolution declaring the City-owned property at 1833 18th Street
Ano longer needed for purpose acquired nor for any other public purpose@; authorized staff to proceed with the sale of the property in compliance with SMMC 2.24.110 and applicable state and federal regulations; and authorized staff to negotiate and execute all necessary documents to complete the sale.In response to published Notices Inviting Bids (published August 17 and 18, 1999) in accordance with City requirements, bids were received and publicly opened and read on September 13, 1999. Proposal forms were mailed to sixty-two vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Three bids were received as follows:
BIDDER |
AMOUNT |
|
Janet Krelle |
$376,083.99 |
|
Los Angeles Youth Network |
$360,000.00 |
|
Jan Feldman |
$300,000.00 |
In compliance with SMMC 2.24.110, which states that sales of real property shall be awarded to the highest and best bidder, staff has evaluated the high bid submitted by Janet Krelle and finds that it meets City requirements.
Budget/Financial Impact
Since the property was initially purchased with federal CDBG funds, revenues generated from the sale of the property must be used for a CDBG-eligible purpose that will benefit low-income residents or a low-income area. The expansion and renovation of Virginia Avenue Park is such an eligible use.
Sale proceeds will be held in the CDBG Fund until used. As the proceeds are spent, they will be recorded at new revenue account number 19262.400950, which needs to be budgeted at $376,084. Projected CDBG program income of $350,000 has already been budgeted for the Virginia Avenue Park expansion project at expenditure account C19018800.589000. An additional amount of $26,084 also needs to be appropriated at this time in account number C19018800.589000.
Recommendation
It is recommended that the award of Bid #2771 be made to Janet Krelle in the amount of $376,083.99 as the highest responsible bidder; that staff be authorized to negotiate and execute a contract and any related documents for the sale of the residential property; and that Council approve the budget changes set forth above .
Prepared By: Diane Howell, Acting Purchasing Agent