Chapter 4.88
LEASE OR TEMPORARY USE OF REAL PROPERTY

Sections:

4.88.010    Purposes.

4.88.015    Exemptions.

4.88.020    Responsibility for administration.

4.88.030    Proposal to appropriate department – Initial procedure.

4.88.040    Summary procedure.

4.88.050    Regular procedure.

4.88.060    Action by council.

4.88.070    Statutory exceptions.

4.88.010 Purposes.

A. This chapter establishes procedure for the leasing and similar temporary use of real property owned by the city. It is the intention of council that the procedures set forth in this chapter are preferred over others; therefore, special procedures called for under other legislation are to be deemed exceptions to this chapter, and their use is to be limited accordingly.

B. Council directions to staff shall be based on full consideration of the following elements:

1. Possible future requirements of the city;

2. Best possible public benefits to the citizens of the city;

3. Intergovernmental cooperation;

4. Best economic return to the city;

5. Ease of administration. [Ord. 8958 § 2, 1981].

4.88.015 Exemptions.

A. The following leases shall be exempt from the requirements of this chapter; provided, that the requirements of subsection (B) of this section are met:

1. Leases for commercial space in the city’s parkade, and other facilities owned or managed by the city’s parking system.

2. Leases for commercial space in the Mt. Baker Theater Building.

3. Renewals of leases pursuant to options to renew contained in lease agreements or where the rate is the same or higher and other terms are not substantially different from an existing lease.

4. Leases for residential or lodging facilities in city parks.

5. Leases which have a value over the term of the lease of not more than $10,000.

6. Leases for commercial space in the Federal Building located at 104 W. Magnolia.

B. The exempt leases listed above shall be subject to the following requirements:

1. Except for leases exempted in subsections (A)(4) and (5) of this section, lease rates shall be market based.

2. Leases shall be approved by the mayor.

3. No lease shall exceed a term of five years; provided, that the lease may contain options to renew for successive periods up to five years each.

4. The council shall be promptly advised by the mayor or his designee when an exempt lease is executed.

5. Leases which do not meet the requirements of this subsection and which are not otherwise exempt require council approval pursuant to this chapter. [Ord. 2010-01-005; Ord. 10753 § 1, 1996].

4.88.020 Responsibility for administration.

The city department head most directly affected by the use of the property in question is responsible for the administration of this chapter. The department head shall coordinate the leasing and similar temporary use of real property and buildings, and shall aid the council in determining the best method of lease administration. The department head shall cooperate with all department heads to ensure the most efficient and beneficial use of city real property. [Ord. 10717 § 1, 1996; Ord. 8958 § 3, 1981].

4.88.030 Proposal to appropriate department – Initial procedure.

Any person, agency or city department may submit a proposal for lease or other temporary use of city real property or buildings to the appropriate department. Proposals shall be brief summaries in writing, generally describing the property, its intended use, and any special conditions. The department head shall then:

A. Determine if any other department of the city has use for the real property, and if so, the details of that intended use;

B. In cooperation with the other department(s), prepare a summary report in writing for initial review by a committee of the council. The reviewing committee shall be that designated by the President of the council, and will usually be the committee having supervision of the department administering the real property;

C. In the case of concessions on city property for seasonal or temporary periods of time, the mayor may enter into an agreement with the concessionaire without prior council approval; provided, that the mayor shall report to the council the nature of the agreement prior to signing. A “concession” is defined as the provision of limited services (food, beverages, recreational amenities, and the like) by an independent contractor on city property. [Ord. 10717 § 2, 1996; Ord. 8958 § 4, 1981].

4.88.040 Summary procedure.

The council review committee has authority to direct summary disposition of the proposal. In this connection:

A. Summary disposition may be used in those cases which the council review committee determines that submission of the proposal to the full council is not necessary. These cases include, but are not limited to: minor joint-use agreements; short-term agreements with other government agencies; and uses of property from which little or no income can be realized.

B. Where the summary procedure is decided upon, the council review committee shall give the appropriate department head specific instructions on arranging for use of the property. The instructions may include, but are not limited to:

1. Acceptance of the terms originally proposed;

2. Negotiation of different or additional conditions; or

3. An offer of use of the property to specific persons or agencies, or to the public at large. Summary procedures may not, however, be used where bids for lease terms are called for.

C. The department head is responsible for carrying out the directions of the council review committee, and to this end shall cooperate with any city department, officer, or advisory board having an interest in the property.

D. If the department head cannot fully carry out the instructions of the council review committee, he or she shall report back to the committee, with recommendations for further action. [Ord. 10717 § 3, 1996; Ord. 8958 § 5, 1981].

4.88.050 Regular procedure.

In cases in which the summary procedure is not authorized:

A. The council review committee shall instruct the department head on the method for arriving at a satisfactory written agreement for submission to the full council. Methods include but are not limited to:

1. A call for bids, on specified conditions, in which the goal is the highest obtainable rent;

2. A request for proposals, in which the goal is either the most advantageous special conditions for use of the property, or a proposal that is offered by a person or organization which will act in the best interests of the citizens of the city;

3. Negotiations with a designated person or organization, subject to special conditions;

4. Rejection of the proposed use of the property;

5. In conjunction with any method selected, the council review committee may order that a public hearing be held on the matter before the full council before the matter is finally disposed of.

B. The department head is responsible for carrying out the directions of the council review committee, and to this end shall cooperate with any other city department, officer, or advisory board having an interest in the property.

C. Upon successful compliance with the instructions of the council review committee, the department head shall prepare a report to the full council, including:

1. A summary of all bids or proposals received;

2. His recommendations for action, together with the recommendations of any city officer or advisory board having an interest in the property;

3. Comments, recommendations or criticisms from any person having an interest in the transaction;

4. A draft resolution setting hearing, if a public hearing has been ordered; and

5. A draft agreement.

D. If the real department head cannot fully carry out the instructions of the council review committee, he or she shall report back to the committee, with recommendations for further action. [Ord. 10717 § 4, 1996; Ord. 8958 § 6, 1981].

4.88.060 Action by council.

Under the regular procedure, final action may only be taken by the full council, as follows:

A. The department head shall submit his or her report and associated papers to the council finance committee, or such other committee as the council president shall designate. The committee shall review the report, and shall make its recommendations for action to the full council.

B. Where a public hearing has been ordered, its date shall be set by resolution. Final action on the proposal may be taken at the close of the hearing, absent an order of council to the contrary.

C. Final action by council shall be by motion, and shall authorize the department head to:

1. Obtain the necessary signatures on the proposed agreement; or

2. Take such other action as may be specified. [Ord. 10717 § 5, 1996; Ord. 8958 § 7, 1981].

4.88.070 Statutory exceptions.

Certain provisions of the Revised Code of Washington impose conditions for the disposition of municipal property. Where necessary, city officials shall comply with those laws, treating them as limited exceptions to this chapter. Exceptions include, but are not limited to, the following as they may from time to time be amended:

A. RCW 35.21.660 through 35.21.690, and 35.21.725 through 35.21.755, transfers to corporations charter by the city;

B. Chapter 35.94 RCW, surplus utility property;

C. Chapters 39.33 and 39.34 RCW, relating to intergovernmental real estate transactions, require the following steps in addition to the procedure set out in this chapter:

1. A public hearing must be held by the council, following the notice required by this subsection;

2. Not less than 10 days, nor more than 25 days prior to the hearing, a notice in display advertising form, setting forth the date, time and place of the hearing and the proposed use of the property must be published in the official newspaper; and

3. At the same time as notice is published, a news release consisting of the same information will be made to the electronic and written media. [Ord. 9134 § 2, 1982; Ord. 8958 § 8, 1981].