HomeMy WebLinkAboutS02-City Administrator
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C I T Y
o F SAN BE R N ~_~ DIN 0
INTEROFFICE.' MEMORANlJt!JliEI\!V..,~I1';' CLF.R~< .
8512-602
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'85 DEe 13 P 3 :02
TO: John Matzer,' Jt.," City Adininistrator
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SUBJECT: Analysis of Appraisal Process
DATE:
December 6, 19B5
(6550)
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COPIES:
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Division of the Public Works Department, give you my comments .
concerning the City of San Bernardino's appraisal process,
The Real Property Division will inform you of the present
system in their response.
In a telephone survey by Lou Little and myself Victorville,
..Onhd9~. ,J;>oIllOIl.a,.., .~lm ,pi~gl),. ,~olt01l, ,Fo.n~ana,. ,.aial.to., ..R-.d"",,,
lands, and City of Riverside, several questions were asked:
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1. Do you use one or two appraisers?
2. Under what conditions?
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3. What is the selection ~roces~?
4. Do you require a full appraisal?
5.. .~V'aluat).on .Let\:e,rs?
6.. .' Po.xo.lJ,r~qu~r.~ Cl~ .I!,AH....."
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7. .Do you have a written or formal policy?
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SU~MARY OF INFORMATION
None of the Cities that we spoke to had a written or a formal
policy. None of the Cities recommended a formal policy set
in .concrete. . They all felt, 'without exception,.. that the
system should be informal and above all completely flexible.
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'. Most of . the" time in the'Ctt.iI~s s'urVeyell, 'eithe( one' appraill~r:
... '. ,"or the"s'taff .tallting ..withknowledgeable. .'Teal ',';est~te agents'" .
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." .' INTBR'6FFICEMEMORANDUtl:" 85'i ~::.'t;o i"
-Analy~irof Appraisal Process
..De.cember.6, 1985..
Page :2
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handled all the small transactions and parcels. Use of more
than one appraiser occurred when RDA,' fede'ral or' state
governments were involved or when litigation was expected.
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although most cities had one or two appraisers who were used
more frequently than others. In all cases, more time was
allowed for the process which gave more appraisers a chance
. .to do. .City work if. .theywanted it:. I.t..would appear that .we.
'.seem' to ,always < be'in..a hurry andmust.sbop in'8 ,. "..seHers"
market. for 'appraisers.' Most of . theln are. booked months in
advance.
. '.Fuli'..app.ia1~ais.'-:ate ..us~d'when<m>A/"(~d.edil';or..state' ~'ovehi:::'- .
menta are involved or when litigation is expected. Always on
very large projects or parcels. Smaller projects and/or
parcels sometimes cannot support the higher costs associated
with full appraisals. Used 60-70% of the time.
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Evaluation letters are utilized on smaller projects and/or
.\. ~ <.,. ..~.J:.c.elJ:i... .ilP-Q,ut. ~.5%,.-<?f ,t,he.,t.i,l!Ie '_.' .' ,_. Yo"'." ,... ,'. "" <.... "'. ,.-,,: '.
MAl <.are used, again, whem it. is an RDA, fe'deral '0):: . state
funded project and in all cases where litigation is expected
(such as condemnation cases).. .
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QlliCLUSION
I would' not:' recolnmend a formalappraisal'p61lcy." Instead, I
would recommend that the Department Head (Director of Public
Works) be .held responsible for the process use'd. Further,'
tha.t~acb matt;erplpce.;l upon ~1.l.e.Gi t:i . Council ,agenda.pll,Ve. the
following basic components: .
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2. Staff I s recommended pr ice,
.. j. ..' "n"appraiser "I:isli!a' ..::'~' fh'e 'ihe'Ebod 'bseB '. . to"'seleH; the"
price and the reason that a full appraisal is being done
or not done; and that the apprais' is placed on top of
the price requested for the par
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.gITVOF. SANBEFOJARDINOO-.,MEMORANDUQ
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-.10111; Mf\l 7[1; , .11:.
CHI. Admin.istratyr
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ROCII: c. IIAI:fl(,I:AI'I', .Iii,.. (,1
,F,rorn.. P~q ljc ,J~rksIP~.Y.JnYi neeI .
Date December 12, 1 gp'~)
file No. 15.05 - G~n.
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Subject Procedures for Obtaining Appraisers
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Approved
Date
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., ... .,9\!r.. prOc~d!!re.s. J.or,.,g~.Y.ri n,9. ~~e.,~erxi.C~.S..()fil..I1.,a'pPr.il i ~,er }!.r:e .setfor.th
below, as requested by your memo of 12-6-85.
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. "Appraisa);; are neeqed for? 'bas'i e; coijcliti'Qiis;' . . 'S'a Ie o:dh'y~Qwnedpro perty"
and purchase o.f .property by the City for .public.purposes....An appr.aisal 'is
needed whenever we . purchase property, due to the nee;essity to present a
substantiated offer to the property owner. However, whenever .we ?ell a
. ....pa>f'cel.of City 'property,.t-ne .pri ce 4S'set.thr'~~hthe bi<ldi1'ig'protess.""
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City parcels are generally sold without an appraisal or letter of evaluation.
Parcels with a value less than $2,000 are sold through an informal bidding
p~ocess, while those in excess of this value are required by legislation to
be sold by a formal bidding process. A letter of evaluation is normally
obtained for parcels which are not clearly over or under this amount.
",,' 'Whel\8n 'a'pp'l'iI ;~1", S'll~ed~ 'fbrpilrC'tli\'Se 'Ii'f 'prO'perfy;' t'~ques'ff'fOr'pr6po'm s'
. are sent to 3 1:,0..6 appraisers.. An apPraiser is selected Eln the basis pf
quoled price and t'ime req'uired to complete the appraisal ~ . '.
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A review appraiser is used for parcels acquired with Community Development
Block Grant Funds. The'appraiser selected is usually the one with the
lDwest quoted price, with the review apprai~er the second. This process
. is mandated by HUD.
The cities of Colton, .Fontana, Rialto and Redlands were contacted to deter-
mine their process for selecting an appraiser. All 4 stated they just call
cnl'appraiserand enter' irito an agreement for the quoted pricE!:' "One city 'us'es
a sin9le appraiser for all of their appraisal work.
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Selling costs are financed from the ~roceeds realized from the sale of a City
parcel.
Pl.ease,advise .jfyou havi!:ilRY further questions.
ROGER G. HARDGRAVE
Directo~'of Public Works/City Engineer
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. RealPrDperty En.gineer
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