HomeMy WebLinkAboutAgenda Report - August 15, 2007 K-04AGENDA ITEM K.'4
ANUM CITY OF LODI
W) COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt resolution authorizing the C i Manager io issue a Request for Proposal for
Brokerage Services to sell surplus City -owned real estate properties (EUD)
MEETING DATE: August 15,2007
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the C i Manager to issue a Request for
Proposal for Brokerage Services to sell surplus City -owned real estate
properties.
BACKGROUND INFORMATION: On April 11, 2006, sfa$ provided the City Council a list of unutilized real
estate properties currently owned by the City.
Staff is requesting permission to issue a Request for Proposals for brokerage services to assist in the marketing
and sale of these City -owned properties.
One of the unutilized sites is the Electric Utility Department property located at 500 South Guild Avenue. This lot is
approximately 9.09 acres as per APN 049-250-61 in the San Joaquin County Assessor's Book of Parcels Map Book
21 Page 159 as shown in Attachment A It is surrounded by: Central California Traction Company on the North,
Thurman Street on the South, Guild Avenue on the Eastern side, and a City of Lodi property (APN 049-250-13) to
the West.
Recently, EUD advertised the property for sale through a formal Request for Proposal without success. It was
advertised for approximately two months to interested parties without employing the services of realtyagentsand/or
brokeragefirms. There were several inquiries and almost all of the bid documents that were placed on the site were
taken. However, no proposals were received by the June 22.2007 deadline.
As a result, Staff believes that the services of a professional com m ercial brokeragefirm may be necessary to obtain
qualified proposals in a timely manner. For purposes of minimizing the expense related to brokerage fees, a two-
tiered brokerage fee structure is proposed. Within the first tier (property sales price is less than or equal to
appraised value) the City is soliciting proposals where it would pay up to a limited fixed amount reflecting the
actuallexpected cost of advertisement and marketing incurred by the brokerage company. Forthe second tier (sales
price in excess of appraised value), the RFP indicates the City's willingness to pay a conventional fee of up to six
percent (61/6) of the sale price exceeding the appraised value. Bidders will be allowed to propose lower fees if
desired. Although not encouraged, alternate proposalswill be considered if deemed advantageousto the City.
The EUD property at 500 South Guild Avenue will be the first application of this two-tiered brokerage fee structure.
It will also be implemented with other City properties should the approach prove successful. FYI, the EUD property
had an appraised value of $2.5 million on October 2006.
Attached is a copy of the proposed Request for Proposal for brokerage services that will be used initially in
markellinglseNing EUD's property at 500 South Guild Avenue and then applied to other unutilized real estate
properties owned by the City as identified below:
1. 1119-1120 Awani Drive (APN 04125038 & 04141001) 3.65 acreswith appraised value of $1.2 million; and
2. 217 East Lockeford (APN 04122002), 1.36 acres with appraised value of $340 thousand; and
3. Century Blvd. Right-of-way, (West of Stockton Street) 3.06 acres with annual lease paymentvalue of $400
thousand.
APPROVED:
(Blair City Manager
Adopt resolution authorizing the City Manager to issuea Requestfor Proposal for Brokerage Services to sell surplus
City -owned real estate properties(EUD)
August 15,2007
Page 2 of 2
This brokerage services arrangement is proposed to be effectivefor a period of 12 months from contract execution
and may be extended for up to two additional years.
FISCAL IMPACT: Proceeds from real estate sales will enhance the City's financial position.
FUNDING AVAILABLE: Not applicable.
�1 lArfl.. LL
&"L�
George . Monte
Electric Utility Director
PREPAREDBII: Demy Bucaneg.k., P.E.,Manager,Engineering & Operatiom
GFMIDBW
Attachments (2)
CITY COUNCIL
BOB JOHNSON, Mayor
JOANNE MOUNCE,
Mayor Pro Tempore
LARRY D. HANSEN
SUSAN HITCHCOCK
PHIL KATZAKIAN
To Prospective Bidders
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
GEORGE F. MORROW, DIRECTOR
1331 S HAM LANE
LODI, CALIFORNIA 95242-3995
(209) 333-6762
FAX (209) 333-6839
August 3, 2007
BLAIR KING, City Manager
RANDI JOHL, City Clerk
D. STEPHEN SCHWABAUER,
City Attorney
Subject: Request for Proposal (RFP) to provide brokerage services to sell unutilized
real estate properties of the City starting with the 9.09 -acre real estate
Property at 500 South Guild Avenue, Lodi, California
The City of Lodi hereby invites sealed proposals to provide brokerage services in selling various
unutilized City -owned real estate properties starting with the 9.09 -acre real estate property at 500
South Guild Avenue, Lodi, California. Each bid shall be in accordance with this notice and
specifications on file and available from the City of Lodi Electric Utility Department, 1331 South
Ham Lane, Lodi, California 95242, (209) 333-6762. No bid will be considered unless it is
submitted on a format according to the `ORGANIZATION OF PROPOSAL' Section of this RFP
document.
Sealed proposals shall be delivered to the Budget Manager at the City Hall Annex, 300 West Pine
Street, Lodi, CA 95240 (P.O. Box 3006, Lodi, CA 95241-1910) on or before
September 19, 2007, at 11:00 a.m.
At that date and hour said sealed proposals will be publicly opened and read in the Public Works
Conference Room, City Hall, 221 West Pine Street, Lodi, California. Bidders or their authorized
representatives are invited to be present.
Please submit detailed proposal and your standard service agreement for review and approval. If
there are any questions regarding this request for proposal, you may contact me at (209) 333-
6828, by email at gmorrow(cDlodielectric.com or Demy Bucaneg of my Staff at (209) 333-6811.
Arrangement for site inspection may be made by calling Mr. Bucaneg at least 24 hours in advance
of planned inspection.
George Morrow
Electric Utility Director
The City of Lodi, CA is inviting qualified firms to provide a proposal for brokerage services to sell
surplus real estate properties owned by the City starting with the Electric Utility Department's 9.09 -
acre real estate property at 500 South Guild Avenue, Lodi, California. The following Request for
Proposals (RFP) outlines the background, scope of work and proposal requirements for the
services.
BACKGROUND
On April 11, 2006, Staff provided the Lodi City Council a list of unutilized real estate property
currently owned by the City.
A lot located at 500 South Guild Avenue was one of them. This property is approximately 9.09
acres as per APN 049-250-61 in the San Joaquin County Assessor's Book of Parcels Map Book
21 Page 159 as shown in Attachment A. EUD is responsible for this property and it is vacant. The
property is surrounded by: Central California Traction Company on the North, Thurman Street on
the South, Guild Avenue on the Eastern side, and a City of Lodi property (APN 049-250-13) to the
West.
During the City Council meeting on February 7, 2007, it was reported that the subject property was
appraised at $2.5 million. Staff also requested permission to market the property. Proceeds of the
sale will be used to augment the financial reserve goal of EUD. The City Council, on motion of one
Council Member, directed Staff to secure bids for sale of 9.09 acres at 500 South Guild Avenue.
SCOPE OF WORK
The scope of work for this brokerage services to sell subject properties will encompass, but not be
limited to, the following task areas:
1. Research, gather and compile all pertinent documents and disclosures necessary for the
sale of designated properties.
2. Obtain title, deed, appraisal, tax, comparatives, and assessor's records about the
property.
3. Advertise and market the sale of this property effectively in the most efficient time possible
at the highest probable market price.
4. Install the appropriate 'For Sale' signs that maintain the aesthetics of the property.
5. Provide timely response to all buyer inquiries including those referred by the City of Lodi
6. Provide regular monthly/weekly feedback to the City's designated representative(s) as to
the status of sale of properties detailing the number of inquiries, offers, modifications on
the marketing strategy, and changes in the industry affecting the sale of the property and
recommendations that would effectively enhance its marketability.
7. Prepare, process and record all papers and documents, including financing, to complete
the sale and transfer of property to the selected buyer. It shall be noted that the buyer will
be responsible for all costs and arrangements associated with the processing, recording
and transfer of this property.
8. Close escrow and deliver the final payment for the sale of the property to the City of Lodi.
9. Submission of final sales report to the City.
ORGANIZATION OF PROPOSAL
Prospective Bidders are furnished with one request for proposal (RFP) document. Proposals shall
follow the following format:
A. Service approach narrative — This section should demonstrate an understanding of the
task at hand and include a narrative describing how the Bidder would go about the work.
B. Project team — Describe the personnel who will carry out services, and their respective
responsibilities.
C. Qualifications — Provide a narrative describing how the team as a whole meets the
qualifications for the services. Include a list of prior relevant sales.
D. Marketing Plan — This section should include the strategy of marketing and advertising the
property and target time of sale.
E. Brokerage Fee — Provide the proposed brokerage fee/s, structure, other surcharges,
and/or details as appropriate. Note: Refer to Item No. 7 of the `Additional Terms And
Conditions' of this request for proposal.
F. Signatures - The proposal must be signed with the full name and address of the bidder, by
an authorized representative of the company with all the information below.
i.
Name of company
ii.
Address
iii.
Authorized signature
iv.
Name
v.
Title
vi.
Telephone No.
vii.
Fax No.
viii.
Date
G. Note - The City of Lodi reserves the right to reject any or all bids, to waive any informality
in any bid, to accept other than the lowest bid, or not to award the bid.
PROPOSAL SUBMISSION
A. The Budget Manager will receive sealed proposals at the following address until
11:00 am, Wednesday, September 19, 2007.
B. Proposals shall be submitted under sealed cover, plainly marked
Proposal — Brokerage Services
Bid Opening - September 19, 2007.
Bids, which are not properly identified, may be disregarded. Bids, which are not received
by 11:00am, Wednesday, September 19, 2007 will be returned to the bidder unopened.
Bids shall be submitted
To: Lodi City Council
c/o —Budget Manager
(If delivered by FedEx, UPS, or courier): (If delivered by mail):
300 West Pine Street P O Box 3006
Lodi CA 95240 Lodi CA 95241-1910
BID OPENING
A. At 11:00 A.M., Wednesday, September 19, 2007, or as soon as possible thereafter, in the
Public Works Conference Room, City Hall, 221 West Pine Street, Lodi, California,
proposals will be publicly opened and read. Bidders or their authorized representatives
are invited to be present.
SELECTION PROCESS
Complete proposals will be evaluated based on the information submitted. This will permit a
recommendation to the City Council for contract award. The following equally weighted criteria will
be used to evaluate submitted proposals:
A. The likelihood of the proposed approach to produce the desired results.
B. Qualifications of the Bidder.
C. The value offered by the Bidder's price in relation to the proposed approach.
REJECTION OF PROPOSALS
The City of Lodi reserves the right to reject any and all proposals and to solicit new proposals with
modified terms and conditions. It also reserves the right to waive any informality in connection with
the proposals.
CONTRACT AWARD
1. The City of Lodi reserves the right to reject any or all bids, to waive any informality in any
bid, to accept other than the lowest bid, or not to award the bid.
2. If there will be a tie in the submitted proposals, the tie will be broken by a coin toss,
conducted by the Budget Manager. Tie bidders will be notified and may be present.
3. In all circumstances, including receipt of alternative bids, the City Council reserves the
right to select the bid most advantageous to the City.
4. The award, if made, will be made within forty five (45) days after the opening of the bids.
GENERAL PROVISIONS
5-409 Responsibility for Damage The City of Lodi, its elected and appointed boards,
commissions, officers, agents and employees shall not accept responsibility for any loss or
damages that occur during the scope of work to the work or any part thereof; or for any material or
equipment used in performing the work; or for injury or damage to any person or persons, either
work personnel or the public; for damage to adjoining property arising from or related to
Contractor's negligence or willful misconduct during the progress of the work or any time before
final acceptance. The Contractor shall indemnify and save harmless the City of Lodi, its elected
and appointed boards, commissions, officers, agents and employees from any suits, claims or
actions brought by any person or persons for or on account of any injuries or damages sustained
or arising out of Contractor's negligent acts, errors or omissions in the performance of the work or
in consequence thereof. The City of Lodi may retain as much of the money due the Contractor as
shall be considered necessary until disposition has been made of such suits or claims for
damages as aforesaid.
5-413 Insurance Requirements for Contractor The Contractor shall provide proof of
insurance to be maintained during the life of this contract as listed under General Liability and
Automobile Liability coverage listed below. These insurance policies shall protect the Contractor
and any subcontractor performing work covered by this contract from claims for damages for
personal injury, including accidental death, as well as from claims for property damages, which
may arise from Contractor's operations under this contract, whether such operations be by
Contractor or by any subcontractor or by anyone directly or indirectly employed by either of them,
and the amount of such insurance shall be as follows:
COMMERCIAL GENERAL LIABILITY
Per Occurrence
$1,000,000 Property Damage
Personal & Adv Injury
$2,000,000 General Aggregate
2. COMPREHENSIVE AUTOMOBILE LIABILITY
$1,000,000 Combined Single Limits
NOTE: Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi
shall provide for a claims period following termination of coverage which is at least consistent with
the claims period or statutes of limitations found in the California Tort Claims Act (California
Government Code Section§ 810 et seq.).
A copy of the certificate of insurance with the following endorsements shall be furnished to the City
of Lodi:
(a) Additional Named Insured Endorsement with Primary Wording
Such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected
and appointed Boards, Commissions, Officers, Agents and Employees as additional named
insured, insofar as work performed by the insured under written contract with the City of Lodi.
(This endorsement shall be on a form furnished to the City of Lodi and shall be included with
Contractor's policies.)
Wording: Such insurance as is afforded by the endorsement for the Additional Insureds shall
apply as primary insurance. Any other insurance maintained by the City of Lodi or its officers
and employees shall be excess only and not contributing with the insurance afforded by this
endorsement.
(c) Severability of Interest Clause
The term "insured" is used severally and not collectively, but the inclusion herein of more
than one insured shall not operate to increase the limit of the company's liability.
(d) Notice of Cancellation or Change in Coverage Endorsement
This policy may not be canceled nor the coverage reduced by the company without 30 days'
prior written notice of such cancellation or reduction in coverage to the City Attorney, City of
Lodi, P.O. Box 3006, Lodi, CA 95241.
(e) Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi
shall provide for a claims period following termination of coverage which is at least consistent
with the claims period or statutes of limitations found in the California Tort Claims Act
(California Government Code Section 810 et seq.).
"Claims made" coverage requiring the insureds to give notice of any potential liability during a
time period shorter than that found in the Tort Claims Act shall be unacceptable.
5-414 Workers' Compensation Insurance The Contractor shall provide proof of and
maintain during the life of this contract, Worker's Compensation Insurance for all Contractor's
employees employed at the site of the project and, if any work is Subcontracted, Contractor shall
require the subcontractor similarly to provide Worker's Compensation Insurance for all of the
latter's employees unless such employees are covered by the protection afforded by the
Contractor. In case any class of employees engaged in hazardous work under this contract at the
site of the project is not protected under the Worker's Compensation Statute, the Contractor shall
provide and shall cause each subcontractor to provide insurance for the protection of said
employees. This policy may not be canceled nor the coverage reduced by the company without
30 days' prior written notice of such cancellation or reduction in coverage to the City Attorney, City
of Lodi, P.O. Box 3006, Lodi, CA 95241.
ADDITIONAL TERMS AND CONDITIONS
1. THIS REAL ESTATE PROPERTY IS SOLD IN "AS IS" CONDITION. The City of Lodi
makes no guarantee as to the suitability of the property for any specific purpose, and all
warranties, expressed or implied, are disclaimed.
2. The successful brokerage company shall indemnify and hold harmless the City of Lodi, its
officers and employees, from all suits or actions of every name, kind and description
brought for or on account of any injuries, damages, and/or costs incurred or sustained by
any person or persons, by or from the bidder, in the use or inability to use, sell or dispose
of this property. Submission of the bid constitutes bidder's agreement to this and all other
sections of this request for proposal.
3. In addition to the prices offered and accepted by the City, the potential buyer of the
property shall be responsible for payment of Sales or Use tax, or in lieu thereof, shall
provide the City with a tax exemption certificate issued by the California Board of
Equalization.
4. The successful brokerage company will require the potential buyer of the property to
provide a narrative description of proposed use of the property and the timing of
implementation.
5. The successful brokerage company shall emphasize that the minimum acceptable bid
price shall be equal or higher than the latest appraised value. The EUD property, being
the first City property to be processed, at 500 South Guild Avenue, Lodi, California has the
October 2006 appraised value of $2.5 million.
6. It is agreed that in the event of any litigation arising hereunder, the bidder at the request of
the City of Lodi shall submit to the jurisdiction of any court of competent jurisdiction within
the County of San Joaquin, State of California, and will comply with all, requirements
necessary to give such court jurisdiction, and that all matters arising hereunder shall be
determined in accordance with the law and practice of such court. It is further agreed that
service of process in any such litigation may be made in the manner provided for in said
code for service upon a person outside of the State of California.
7. The Brokerage Fee Schedule shall be two-tiered as follows:
a. First Tier — The City of Lodi shall pay the successful brokerage agency an amount
not to exceed the actual or estimated cost of advertising and marketing a
property. This tier applies to that portion of the property's sale price that is equal
or less than the City -designated appraised property value.
b. Second Tier — The City of Lodi shall pay a maximum fee of six percent (6%) which
shall be calculated based on that portion of the sale price exceeding the
appraised value. And for the EUD property at 500 South Guild Avenue, the
October 2006 appraised value of $2.5 million shall be the basis.
8. The brokerage services shall be effective for an initial period of twelve (12) months from
date of contract execution.
9. The brokerage services shall be extended in a yearly basis up to a period of two (2) years
with the approval of the City Council.
10. From time -to -time, properties in addition to the 500 South Guild listing may be provided by
the City to the successful brokerage firm for marketing, sale, and/or lease. These City -
owned properties may include the following:
a. 1119-1120 Awani Drive (APN 04125038 & 04141001) 3.65 acres with appraised
value of $1.2 million
b. 217 East Lockeford (APN 04122002), 1.36 acres with appraised value of $340
thousand
c. Century Blvd. Right -Of -Way, (West of Stockton Street) 3.06 acres with annual
lease payment value of $400 thousand
MAILING LIST
Michael Carouba
Coldwell Banker Commercial The Duncan Company
18826 N. Woodbridge, Ca 95258
Tel. No. (209) 327-7700
Email:.Michael@duncando.com
Chuck Lantznester
American Commercial Brokerage
Tel. No. (209) 951-1888 x222
email: americancb@hotmail.com
John Fondale
TRI Commercial
Tel. No. (209) 477-9364
Cellular: (916) 768-9236
Email: jfondale@tricommercial.com
Hal Lurtsema
Prudential California Real Estate
Tel. No. (209) 367-0502
email: hallurtsema@mypermail.com
Steve Hennecke
Prudential California Real Estate
Tel. No. (209) 365-8340
email: shenecke@pacbell.net
Jim Stanley
497 Crocker Road
Sacramento, Ca 95864
Tel. No. (916) 978-0433
Tel. No. (916) 812-7200
Chris Book
Cornish & Carey Commercial
Tel. No. (916) 569-2335
Email: cbook@ccarey.com
Frank Allegre
4988 W. Highway 12
Lodi, CA 95242
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RESOLUTION NO. 2007-172
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO ISSUEA REQUEST FOR
PROPOSAL FOR BROKERAGE SERVICES TO SELL SURPLUS
CITY -OWNED REAL ESTATE PROPERTIES, UTILIZING A TWO-
TIERED BROKERAGE FEE STRUCTURE
WHEREAS, the City -owned property located at 500 South Guild Avenue
(APN 049-250-61) was recently identified as one of the City of Lodi's underutilized
properties, consisting of approximately 9.09 acres; and
WHEREAS, staff recommends utilizing the services of a professional commercial
brokeragefirm in order to obtain qualified proposals in a timely manner; and
WHEREAS, the request for proposal (RFP) will describe the brokerage services,
fees, and general land use; and
WHEREAS, for purposes of minimizing the expense related to brokerage fees, a
two-tiered brokeragefee structure is proposed; and
WHEREAS, within the first tier (property sales price is less than or equal to
appraised value), the City is soliciting proposalswhere it would pay up to a limited fixed
amount reflecting the actual/expected cost of advertisement and marketing incurred by
the brokerage company; and
WHEREAS, for the second tier (sales price in excess of appraised value), the
RFP indicates the City's willingness to pay a conventional fee of up to six percent (6%)
of the sale price exceeding the appraised value. Bidders will be allowed to propose lower
fees if desired; and
WHEREAS, although not encouraged, alternate proposals will be considered if
deemed advantageous to the City; and
WHEREAS, the RFP for brokerage services will be used initially in
marketing/selling the property at 500 South Guild Avenue and then applied to other
unutilized real estate properties owned by the City as identified below:
• 1119-1120 Awani Drive (APN 041-250-38 & 041-410-01) 3.65 acres with
appraised value cf $1.2 million;
• 217 East Lockeford (APN 041-220-02), 1.36 acres with appraised value of
$340,000; and
• Lease of Century Boulevard right-of-way, (west of Stockton Street) 3.06 acres
with appraised value of $400,000".
*Annual lease payment of $40,000 forthls property based on appraised value.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
authorizes the City Manager to issue an RFP for brokerage services to sell the 9.09 -acre
real estate property located at 500 South Guild Avenue; the 3.65 -acre parcel at
1119-1120 Awani Drive; the 1.36 -acre parcel at 217 East Lockeford Street; and lease
the 3.06 -acre right-of-wayon Century Boulevard (west of Stockton Street); and
BE IT FURTHER RESOLVED that the City Council hereby authorizes the two-
tiered brokeragefee structure as outlined above; and
BE IT FURTHER RESOLVEDthat, although not encouraged, alternate proposals
will be considered if deemed advantageous to the City.
Dated: August 15, 2007
hereby certify that Resolution No. 2007-172 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held August 15, 2007, by the
following vote:
AYES: COUNCIL MEMBERS— Hansen, Katzakian, and Mayor Johnson
NOES: COUNCIL MEMBERS— Hitchcock
ABSENT: COUNCIL MEMBERS—Mounce
ABSTAIN: COUNCIL MEMBERS— None
1 1 l' lVD v-ViCJ
NDI J L
City Clerk
2007-172