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CC Resolution No. 7489 RESOIIJTION NO. 7489 RESOWI'ION OF THE CITY CXJONCIL OF THE CITY OF aJPERI'INO DECIARING ITS INTENTION it) SEIL SURPIDS REAL PROPERI'Y WHEREAS, the City of CUpertino, hereinafter referred to as "City" is now the owner of that certain real property which is located at 19810 Portal Plaza, CUpertino, California, carmrcnly known as Park Plaza an:i more particularly described in Exhibit "A," attached hereto an:i incorporated herein. WHEREAS, said property is not needed for park purposes or for any other governmental purpose an:i that it is the judgment of the city Council of the city of CUpertino, for the best interests of the city, that said property be sold to the highest responsible bidder or bidders under the authority of section 37350 et seq. of the Government Code of the state of California. WHEREAS, the City has complied with all the legal requirements established for the sale of surplus property includirq the requirements specified in Section 54220 et seq. of the Government Code of the state of California. NOW, THEREFORE, it is hereby determined an:i ordered that said property shall be offered for sale under the following terms an:i conditions: 1. BIDDING DATES '!he bidding session is to be scheduled for an as yet to be specified date in July or August. A legal notice an:i newspaper advertisement will be published describirq the actual date an:i location of bidding. 2. WRITI'EN BIDS Written bids shall be presented on the Bid Fonn as shown in Exhibit "B." Bidders can use the attached fonn or obtain additional copies of the Bid Fonn as noted in Paragraph 13 of this Resolution. The Bid Fonn must be received by the City Clerk of the City before 7:30 P.M. on the date of the bidding sessions. The Bid Fonn should be completed an:i placed in a sealed envelope alon;J with the appropriate deposit as described in ParagraFh 5. '!he outside of the envelope should state that it is a "SEAIED BID". The bid can be mailed or ham. carried to the City Clerk, City of CUpertino, 10300 Torre Avenue, CUpertino, California. Mailed bids should be placed in a second envelope an:i addressed a=rdingly. 3. MINIMUM BIDS '!he minimum acceptable written bid shall be $163,00. All bids submitted must be cash bids. Bids for less than the minimum bid amount will be rejected. '!he minimum bid shall be made at the bidding session an:i shall be, in each case, an amount equal to the highest bid for the lot sold immediately preceding the lot offered. Resolution No. 7489 Page -2- 4. TERMS Bids shall consist of an unconditional offer to purchase a lot for cash, payable in full, in cash, cashier's or certified check at the close of escrow. A successful bidder shall be given three (3) days after a=eptance of bids to execute a purchase contract (Exhibit "D") an:i thirty (30) days thereafter to close escrow unless extended by written I!DJ.tual consent of the parties. 5. DEIœIT (a) Amount of Deposit All submitted written bids I!DJ.St be ac:conpanied by a certified or cashier's check in the amount of $5,000.00 per lot to be purchased. Said deposit should be made payable to the City of CUpertino. (b) Number of DePOSits An individual or entity may submit written bids at the bidding session. '!he amount of the deposit needed to accarrpany a written bides) should equal $5,000.00. An individual or entity who is an unsuccessful bidder with respect to any given biddirY;J rourrl, may apply hisjher deposit to any subsequent bidding rourrl. (c) Deposits Reauired of Oral Bidders Those individuals or entities planning on participating in the oral bidding but who have not submitted a written bid with deposit shall be required to tender prior to the conunencement of the oral bidding, a deposit amounting to ten thousand dollars ($10,000.00) to be bid upon. said deposit I!DJ.St be in the fo:rm of a certified or cashier's check made payable to the City of CUpertino. All bidders who have submitted a $5,000.00 deposit with a written bid which complies with the terns herein, shall not be required to submit any additional f1.Ims to participate in the oral bidding. (d) Forfeiture of Deposit In the event a bid is accepted an:i the bidder fails, within the time allotted herein, to execute any dOClnllents related to the sale, including the purchase contract, or otherwise does not perfo:rm according to the terns of the bid, then said bidder will forfeit an amount equal to $5,000.00. '!he difference, if any, remainirq after subtractirq the $5,000.00 forfeiture fran the original deposit will be refunjed to bidder upon the determination that bidder does not desire to consummate a sale. Resolution No. 7489 Page -3- (e) Return of Deposits Deposits of unsuccessful bidders will be retw::ned after the City's final acceptance of the successful bid, but in no case, will such period exterxi beyoIrl ten (10) days after the biddirq session. No interest shall be paid by city on any deposits. 6. TITLE: Title to the property shall be conveyed by Grant Deed subject to all liens, encumbrances, or other cloud on title which may affect the property. A copy of the preliminary title report is available at the City Offices, (Depart:Jnent of Public Works) 10300 Torre Avenue, CUpertino, California. 7. ACCEPTANCE OF BIOO The accepted bid, this Resolution an:i exhibits thereto an:i the executed Purchase Contract (Exhibit "C") shall constitute the contract of purchase in accordance with the tems outlined in said documents. The City Council of the City of CUpertino resaves the right to accept a bid which in its sole discretion deems to be in the City's best interest. The City Council of the City of CUpertino resaves the right to reject any an:i all bids, waive any irregularities, to be the sole judge of the responsiveness of the bids an:i to determine which bid or bids constitute the greatest return to the City. 8. CLOSE OF ESCRCW The transaction shall be constnmnated through an escrow to be opened by the buyer (successful bidder) at (Name of Title CanIPanv). All escrow an:i other costs including title insurance, any taxes, charges, or fees assessed by local, state, or federal governments as a result of the subject property transfer, shall be borne by the buyer. 9. rosSESSION The City shall turn over possession of the premises to the purchaser at the close of escrow. The City shall maintain existing insurance coverage on the property prior to close of escrow. The successful bidder may have reasonable access to the premises for the purpose of studies related to the developnent of the property prior to the close of escrow. The successful bidder will hold the City harmless for any damage to, or loss of, personal property, or personal injw:y incurred by the successful bidder, or representatives, agents or employees of the bidder, should such damage, loss or injw:y occur on the subject property so l<ID3' as the city retains ownership an:i occupancy of the property. 10. REAL ESTATE BROKERAGE ca1MISSIONS The City agrees to pay a brokerage commission to licensed real estate brokers, in an amount not to exceed 3% of the purchase price, provided that such commission an:i the person to wham it is payable is specified in that bid which is finally accepted by the City as the highest responsible bid, an:i provided that the ëUI'OUI'lt of any such bid shall be determined net of any commission so specified. SUch real estate commission shall be payable out of escrow at close of escrow. Resolution No. 7489 Page -4- 11. ATroRNEY I S FEES In the event that any legal action or litigation is urrlertaJœn by the City to enforce the provisions of the bid offer or any subsequent written agreement to execute such offer, the S11ccessful bidder agrees to pay reasonable attorney fees in=ed by the city. 12. BIDDING :æ:x:EIXJRES The following procedure will be used in conducting the sale of the property herein. (a) All written bids :must be delivered to the city Clerk of the City no later than 7:30 P.M. on the date of the bidding session. The clerk will open the written bids at the oomrnencement of the bidding session which shall be 7:30 P.M. The bidding session shall be held in the Conference Room at the City Hall. (b) The Clerk will announce the highest written bid. The criteria used to determine the highest responsible bidder will be the bid which generates the highest net revenue to the city of CUpertino. (Net revenue is defined as that ærount to be paid to the City after subtractirq the brokerage commission, if any, from the bid price.) (c) Thereafter, oral bids for the first lot will be solicited. The first oral bid shall exceed the highest written bid by at least $2,000.00. Each subsequent oral bid :must exceed the prior oral bid by at least $500.00 Again, oral bids may be made by parties who have, or who have not, submitted written bids, provided, however, only those parties who have submitted a deposit either prior to the ccnmnencement of the oral bidding or with a written bid will be allowed to participate in the oral bidding. (d) Upon completion of the oral bidding, the highest individual bidder an:i the secon:i individual bidder shall ÍlraI1ediately cause the bid to be reduced to writirq on the appropriate form (Exhibit "B".) (e) The Clerk will tentativelv accept the high an:i secorx:l highest bid, adjourn the biddirq session an:i deliver the two high bids to the City Council. The City Council, in its sole discretion, will resolve both the method of sale of the lot beirq offered in a given round of bidding an:i the respective successful bidder. The City Council reserves the right to accept a bid which it determines to be in the city's best interests. The City Council also reserves the right to reject any an:i all bids an:i call for a new bidding session. (f) Final acceptance of the high bid for any lot shall be made by the City Council. The Council will determine which bids are in the best interests of the City. (g) The individual or entity submittirq the highest responsible bid (whether written or oral) . Resolution No. 7489 Page -5- (h) Upon final acceptance of the highest responsible bid for each lot by the city Council, the Purchase Contract (Exhibit "C") for each lot shall be executed within three days of said acceptance an:i an escrow shall be established by the successful bidder at (Title Comœnv) . Escrow shall close within thirty (30) days from the date of executirq the Purchase Contract. At escrow closirq, buyer shall deposit in cash with said escrow company an annmt equal to the bid less deposit plus all closing costs, loan fees, an:i any other costs required to close the sale. Upon close of escrow, the City shall receive the net chase amount as provided by the escrow officer an:i the buyer shall receive a grant deed to the property as provided in Paragraph 6. 13. REXXJFSTS FOR ADDITIONAL FORMS AND PROCEI:xJRES Additional Bid forms an:i copies of this Resolution which serves as the instructions to bidders will be fo1:Warded to interested parties by mail or telephone request. ihose interested should write or call: CITY OF aJPERI'INO P.O. Box 580 CUpertino, CA 95014 Phone: (408) 252-4505 14. RJBLICATION AND rosTING 'Ihe City Clerk is directed to cause to be published a notice of intention to sell real property in a newspaper of general circulation within the City of CUpertino for a period of four weeks prior to the bidding session an:i is also directed to post the property with a copy of said notice at least thirty (30) days prior to the bidding session. PASSED AND AOOPl'ED by the City Council of the City of CUpertino, this ?nn day of M~y , 1 qRR , the followirq vote: MEMBERS OF THE CITY CXXJNCIL AYES: NOES: ABSENT: ABSTAIN: Johnson, Koppel, P1ungy, Rogers, Gatto None None None APPROVED: /s/ John M. Gatto Mayor, City of CUpertino ATI'EST: /s/ Dorothv Cornelius City Clerk