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HomeMy WebLinkAbout25- Administrator's Office CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: Fred Wilson Subject: Sale -of Pioneer Memorial Assistant City Administrator Cemetery Dept: Administrator ' s Off ice (1216IN4 Date: May 28, 1996 Synopsis of Previous Council action: 03/18/96 -- Staff authorized to solicit bids for the sale of Pioneer Memorial Cemetery. 05/06/96 -- Bid received is rejected; staff reauthorized to advertise for bids . Recommended motion: 1. That the bid as received for the sale of certain City-owned property located at the corner of Sierra Way and 7th Street in the city of San Bernardino (Pioneer Memorial Cemetery) from the Loewen Group International , Inc . , be accepted; 2 . That staff be directed to negotiate a sales agreement with the Loewen Group, to be brought back to the Mayor and Council for final approval . Signature Contact person: Frf-d Wi ] son Phone: 5122 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount- N/A Source: (Acct. No.) (Acct. Description) Finance: Council Notes: 75-0262 Ononr♦a I+nm IVn STAFF REPORT On March 18 , the Mayor and Council authorized staff to solicit bids for the sale of Pioneer Memorial Cemetery. On May 6, the only bid received was rejected due to the fact that the bid was not made in accordance with the bid specifications. The specifications were revised to allow the City flexibility in negotiating the terms of the cemetery sale. Bids were again solicited, and one bid has been received. The Loewen Group International, Inc. , has bid $926, 513 for the property, which is the minimum acceptable bid. Loewen has also proposed terms for the purchase (see attached bid form) . Under these terms, the City would receive: - One payment of $555, 908 prior to close of escrow; - $25, 000 per year on the first and second anniversaries of close of escrow; - $50, 000 per year on the third and fourth anniversaries of close of escrow; and - Final payment of $220, 605 on the fifth anniversary of close of escrow. It is recommended that this bid be accepted, and that staff be directed to negotiate a sales agreement that will be brought back to the Mayor and Council for final approval. According to the bid specifications, the sale is contingent upon the execution of a mutually acceptable sales agreement. Therefore, the sale will not be final until such an agreement is executed by both the City and the Loewen Group. In order for the General Fund to realize the full $926, 513 in revenue during FY 1996-97 , it is also recommended that balance of the payments ($370, 605) be loaned to the General Fund by the Trust and Agency Fund (City Hall Sinking Fund) , and that the subsequent payments received from the Loewen Group be then deposited to the Trust and Agency Fund. 05/20%96 15:17 %T [a 002 . � v u OFFICIAL BID FORM SALE OF CITY-OWNED PROPERTy, CITY OF SAN BERNARDINO PIONEER MEMORIAL, CEMETERY, 211 EAST NINTH STREET PER SPECIFICATION No. 15.05-210a In compliance with Specification No. 15.05.210a,eouccming the sale of the above City-owned property,the following bid issubmitied: Nine hundred twenty six thousand, five hundred thirteen Dolly($ 926,513.00 payable as follows: $ 555,908.00 to be deposited into escrow prior to close of escrow, and the balance to be paid as follows:*See bel o1 ii)o�o w)ta�hh� >mxxxxxxxxxxxxxxxxx *,Ui(&4 (drele ona) - s+Mx)(xxxxxxxxftW=W,="Ah6U#xd% M& - Attached is a cashier's check payable to the CITY OF SAN BERNARDINO, in M amount equal to at least ten percent(10%) of the above bid, which I understand will be returned without interest if I 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. 15,05-2 1 Oa and that I understand the m9ft prope is eing sold in an "AS-IS" condition. LOEWEN�GGROOUUP INTERNATIONAL, INC. P�ddel h' OF Office i�Q rt A 7a Office � Cie P 3190 Tremont Avenue 2L 15 386,3 22 SdAI1.ING ADDRESS TELEPHONE NO. Trevose, PA 19053 CITY, STATE, ZIP CODE Scaled bids,submitted on this official Bid Form,will be received until 2:00 p.m.,May 23, 1996,at the office of the Director of Public Works, 3rd Floor, City Hall, 300 N. "D" Street, San Bernardino, California, 92518, 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 OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-210a **Two payments of $25,000 each, payable on the first and second anniversaries 3W210a of the closing of escrow; two payments of $50;000 each, payable on the third OV091% and fourth anniversaries of the closing of escrow, and one payment of $220,605 payable on the fifth anniversary of the closing of escrow all �Jthout i terest This Bid and the deposit required hereunder is subject to 'Loewen and the City reaching a "mutually acceptable purchase agreement" as provided for in paragraph 8 of the Notice of Sale of Real Property.