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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES FUNK, Director
Subject: Oral Bids: 4 p.m. and Awarding of
Bid -- Sale of City Water Department
Property located at the Southeast comer of
Mac Kay Drive and "D" Street.
Dept: Development Services
Date: June 14,2005
File No. 15.05-241
MCC Date: 07/05/2005
Synopsis of Previous Council Action:
04-04-2005 - Authorization to Proceed with the sale of City Water Department property was approved.
05-16-2005 - Resolution No. 2005-117 was adopted establishing the fair market value at $130,000.00 and
Notice Inviting Bids for the parcel located on the Southeast comer of Mac Kay Drive and "D" Street was
approved.
Recommended Motion:
I. That the hearing accepting oral bids for the sale of City Water Department property, as per Bid
Specification No. 15.05-241, be closed.
AND
2. That the bid amount of$160,000.00 (One Hundred Sixty Thousand Dollars) be awarded to Mapco /
David E. Mlynarski, (APN: 0141-311-21).
3. That the oral bid amount of$
(APN 0141-311-21).
OR
be awarded to
for this Parcel
-hf~
Contact person: GLORIA J. PEDERSEN
Staff Report, Map,
Supporting data attached: Bid Form, Letter
Phone: 5226
Ward:
3
Closing Costs To Be Paid From Proceeds Of Sale
FUNDING REQUIREMENTS: Amount: (amount to be determined)
Source: (Acct. No.) 001-000-4925-0000
(Acct. Description)
Sale of Misc. Prooertv
Finance:
Council Notes:
1{ijos-
Agenda Item NO.~
-
-
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Oral Bids: 4 p.m. and Awarding of Bid -- Sale of City Water Department property located on the
Southeast comer of Mac Kay Drive and "D" Streets.
BACKGROUND:
On April 4, 2005 authorization to proceed with the sale of City Water Department property located at
the Southeast comer of Mac Kay Drive and "D" Streets was given by the Mayor and Common Council.
On AprilS, 2005 notice was sent to all City Departments that this City-owned property had been
declared surplus. No conflicts or objections to the proposed sale were made known by any City
Department.
On May 16,2005, Resolution No. 2005-117 was adopted, establishing the fair market value of this
property at $130,000.00 (One Hundred Thirty Thousand Dollars) and also authorized the advertising of
a Notice Inviting Bids for this City-owned parcel in the Sun newspaper.
The deadline for submitting bids was June 8, 2005. One bid was received from Mapco / David
Mlynarski in the amount of $160,000.00 (One Hundred Sixty Thousand Dollars). The bidder paid the
required ten percent deposit of $16,000.00 (Sixteen Thousand Dollars) in the form ofa Cashier's Check.
Terms are all CASH payable 60 days after the close of escrow (see attached Bid Form and letter).
Attached also is a map showing the location of the parcel.
Although the apparent high bidder and sole bidder isMapco / David E. Mlynarski, procedures for the
sale of property have provisions for accepting oral bids. Oral bids, if any, must be received in at least
$100 increments for the outright purchase of the property, provided that the initial oral bid shall be an
amount not less than the highest sealed bid plus 10%. Thus, the minimum opening oral bid must be at
least $170,000.00 (One Hundred Seventy Thousand Dollars). The successful oral bidder is required to
make a non-refundable deposit with the City Clerk in the form of a Cashier's check, prior to the end of
the meeting or within 2 hours of awarding the bid, whichever shall occur later, in an amount equal to
10% of the bid amount. .
Since this property is owned by the City of San Bernardino on behalf of the Water Department, all sales
proceeds will be transferred to the Water Department, less costs. Additionally, the City will receive
10% (ten percent) of the sales proceeds pursuant to the City Charter. If the bid is awarded, staff will
prepare and present a Sales and Purchase Agreement at a future meeting for your action.
FINANCIAL IMPACT:
All costs relative to this sale (staff time, escrow, title and closing costs, etc.) will be paid for from the
sale proceeds. Ten percent ofthe sale proceeds to the Water Department may be transferred to the City.
RECOMMENDATION:
Staff recommends that the hearing on oral bids be closed and, in the absence of a higher oral bid, the bid
. for this parcel be awarded to Mapco / David E. Mlynarski.
~~~..
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CITY OF SAN BERNARDINO
REAL PROPERTY SECTION
OFFICIAL BID FORM - SALE OF REAL PROPERTY
LOCATION OF PROPERTY BEING SOLD:
VACANT LAND ON THE SOUTHEAST CORNER OF MAC KAY DRIVE AND "D" STREET
PER SPECIFICATION NO. 15.05-241
In compliance with SpecifICation No. 15.05-241, concerning the sale of the above City-owned property, the following bid is submitted:
One \auw\~ ~~~~(\u..(C\~ ' Dollars (s--.JCoO} 000. 00 ).
payable as follows: S I ~ I 0 D\O. 0 0\\ l. (,0 c\o.{~ t~:;~W escrow Prio: close of escrow,
and the balance to be paid as follows: c.. OS~ 0" CQS: lJ annual [] monthly payment(s) ofS ~ . plus
interest at the rate of 4-% per annum on the unpaid balance.
Attached is a cashier's check payable to the CITY OF SAN BERNARDINO, in an amount equal to at least ten percent (10%)
of the above bid, which I understand will be returned without interest if! am not the successful bidder as determined by the Mayor and
Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions
outlined in Specification No. 15.05-241. and that I understand the subject property is being sold in an "AS-IS" condition.
Pa~i d c::.. t-I\~V'\">A'5~
PRINTED NAME OF BIDDER
':9.0. b~ 5~2L-
MAILING ADDRESS
S:iY\ 00-, 'r\c..o' c.t~ n
CITY, STATE, ZIP CODE
GNATURE
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~NENO.
cA
I
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Sealed bids, submitted on this official Bid Form, will be received until 2:00 P.M., June 8, 2005, in the Real Property Section,
Development Services Department, 3rd Floor, City Hall, 300 N. "D" Street, San Bernardino, California, 92418, at which time they will
be publicly opened, examined and declared.
NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL
SEALED BIDS MUST HAVE THE FOLLOWING INFORMATION ON THE LOWER LEFT-HAND
CORNER OF THE IU~ ENVELOPE:
SEALED BID
SALE OF CITY PROPERTY
SPECIFICATION NO. 15.05-241
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MAPCO
Gentlemen:
We are herewith submitting our bid for the purchase of the subject property referred to
above.
MAPCO is a local real estate consulting and development firm with roots in the San
Bernardino community for over 25 years. We are the current owners ofa 3200 square
foot building located at 413 MacKay Drive, which is immediately adjacent to the
property being offered for sale.
We employ 28 people and provide business opportunities to other local businesses and
enterprises. Our interest in purchasing the subject property is to expand our present
business operations and provide additional space for our growing staff. We choose our
current location for convenience to local freeways, governmental offices and nearby
business and restaurant services that we often frequent with clients and business
associates.
Our intentions, upon being selected as the successful bidder, are to proceed with the
design and development of an office building for the expansion of our current business.
We feel that there is enormous value in retention ofloca1 businesses, expansion of
operations and working with local enterprises.
Thank you for consideration of our offer.
'f1 ~S;]
~'. Mlynars
MAPCO
Mapco.docs.mackayoffer
"-.
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413 MacKay Drive P.O. Box 5822
Telephone: (909) 384-7464
San Bernardino, CA 92412
Fax: (909)384-7475
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CITY OF SAN BERNARDINO
REAL PROPERTY SECTION
OFFICIAL BID FORM - SALE OF REAL PROPERTY
LOCATION OF PROPERTY BEING SOLD:
VACANT LAND ON THE SOUTHEAST CORNER OF MAC KAY DRIVE AND "0" STREET
PER SPECIFICATION NO. 15.05-241
In compliance with Specification No. 15.05-241, concerning the sale of the above City-owned property, the following bid is submitted:
Ol'\e ~Uw\~~ ~~'I;.1 ~C\lA(C\~ Dollars ($_l<oO} 000. CO ).
payable as follows: $ 14> I 00\0. 0 0\\ L. (,0 do.f':. t~::ZW escrow Prio: close of escrow.
and the balance to be paid as follows: c... OS-e.. a.. ms: lJ annual [] monthly payment(s) of$ '-t' . plus
interest at the rate of --4--% per annum on the unpaid balance.
Attached is a cashier's check payable to the CITY OF SAN BERNARDINO, in an amount equal to at least ten percent (10%)
of the above bid, which I understand will be returned without interest ifI am not the successful bidder as determined by the Mayor and
Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions
outlined in Specification No. 15.05-241. and that I understand the subject property is being sold in an "AS-IS" condition.
P~'-1\ d -c:.. tv\\~~">A(S~
PRINTED NAME OF BIDDER
(\J.O. b~ 5~2L-
MAILING ADDRESS
S:i"" 00.1 v..(A..... rQ ..i\;, l'l
CITY, STATE, ZIP CODE
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S'ltiNATURE (
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'ttLE'PtibNE NO.
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Sealed bids, submitted on this official Bid Form, will be received until 2:00 P.M., June 8, 2005, in the Real Property Section,
Development Services Department, 3rd Floor, City Hall, 300 N. "0" Street, San Bernardino, California, 92418, at which time they will
be publicly opened, examined and declared.
NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL
SEALED BIDS MUST HAVE THE FOLLOWING INFORMATION ON THE LOWER LEFT-HAND
CORNER OF THE Q!!l.ENVELOPE:
SEALED BID
SALE OF CITY PROPERTY
SPECIFICATION NO. 15.05-241
-,_."~
MAPCO
Gentlemen:
We are herewith submitting our bid for the purchase of the subject property referred to
above.
MAPCO is a local real estate consulting and development firm with roots in the San
Bernardino community for over 25 years. We are the current owners of a 3200 square
foot building located at 413 MacKay Drive, which is immediately adjacent to the
property being offered for sale.
We employ 28 people and provide business opportunities to other local businesses and
enterprises. Our interest in purchasing the subject property is to expand our present
business operations and provide additional space for our growing staff. We choose our
current location for convenience to local freeways, governmental offices and nearby
business and restaurant services that we often frequent with clients and business
associates.
Our intentions, upon being selected as the successful bidder, are to proceed with the
design and development of an office building for the expansion of our current business.
We feel that there is enormous value in retention ofloca1 businesses, expansion of
operations and working with local enterprises.
Thank you for consideration of our offer.
~YYo~
')~,
avid E. Mlynars
MAPCO
Mapco.docs.mackayoffer
'-.
-'-~
413 MacKay Drive P.O. Box 5822
Telephone: (909) 384-7464
San Bemardino, CA 92412
Fax: (909)384-7475
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