Agenda Item
ASR
Control 23-000875 |
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MEETING
DATE: |
12/05/23 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Thomas
A. Miller (714) 834-6019 |
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Daniel
Leung (714) 834-3702 |
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Subject: Delegated Authority to Execute
Revenue Leases and Licenses
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Resolution to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 1/8/2019 #23 |
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RECOMMENDED
ACTION(S):
1. |
Adopt the
attached Resolution to delegate the Chief Real Estate Officer or designee the
authority to execute revenue leases and licenses of County property that meet
specific criteria and perform other activities as specified in the
Resolution. |
2. |
Direct the Chief
Real Estate Officer or designee to submit an annual report of transactions
executed under this authority as specified in the Resolution. |
SUMMARY:
Adoption
of the attached Resolution renews authority that permits the Chief Real Estate
Officer or designee to execute leases and licenses of County property when the
term does not exceed 10 years and the lease or license rental amount does not
exceed $17,500 per month, which will assist in reducing administrative costs
and processing time when completing minor real estate transactions.
BACKGROUND
INFORMATION:
On
January 8, 2019, the Board of Supervisors (Board) approved Resolution No.
19-002, which delegated the authority to execute short term revenue leases and
licenses of County property to the Chief Real Estate Officer or designee.
Government Code Section 25537 authorizes the Board to prescribe by Ordinance an
alternate to the procedure required by Code Sections 25526 to 25535 for the
leasing and licensing of any County real property for a term not exceeding 10
years and allows the Board to set the authorized rental amount. Pursuant to
section 1-4-154 of the Orange County Codified Ordinances (Ordinance No. 03-001)
adopted by the Board, an alternate procedure was so established. Previously,
Resolution 19-002 set the maximum dollar amount at $15,000 per month. By law, the Board’s delegation of its
authority to execute such leases and licenses is limited to five years. Therefore, the prior delegated authority
granted in 2019 by the Board in Resolution No. 19-002 will expire on January 8,
2024.
Over the past five years, real
estate values and rents have risen significantly. Based on an analysis of
the Consumer Price Index, a three percent annual appreciation rate is
considered reasonable and appropriate for purposes of establishing a new
valuation threshold for revenue leases and licenses authorized under delegated
authority. Accordingly, CEO Real Estate is requesting that the new authority be
set at $17,500 per month in rental to facilitate CEO Real Estate’s service to
the County’s many departments. This will
likely only result in a few additional leases or licenses being executed
annually under delegated authority but will assist in minimizing administrative
costs.
Government
Code Section 25537 and the proposed Resolution require that at least five
working days prior to the proposed execution of a lease or license, the Chief
Real Estate Officer or designee will provide notice to the office of the
supervisorial district in which the property proposed to be leased or licensed
is located. In accordance with the code section, if the supervisorial district
office has not responded to the notification in writing objecting to the
proposed agreement within five working days, the proposed agreement shall be
deemed approved by the district office.
Use of
delegated authority continues to substantially reduce administrative processing
time, thereby allowing the County of Orange to provide enhanced customer
service when processing minor revenue lease and license transactions. All
aforementioned transactions executed under this authority will be reported to
your Board annually.
Compliance with CEQA: The subject
activity is not a project as defined by CEQA pursuant to Section 15378 of the
CEQA Guidelines.
FINANCIAL
IMPACT:
N/A
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Resolution
Attachment B - Resolution No. 19-002
Attachment C - Government Code Section 25537
Attachment D - Government Code Sections- 25526-25535
Attachment E - Ordinance No. 03-001 and Codified Ordinance 1-4-154