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Home My WebLink About9 Real Estate Contract and ServicesAgendaItem#9TRUCKEEDONNERPublicUtilityDistrictCONSENTTo:BoardofDirectorsFrom:ShannaD.Kuhiemier,CMCDate:June05,2019Subject:ConsiderationofaRealEstateContractwithSierraSotheby’s1.WHYTHISMATTERISBEFORETHEBOARDTheBoardapprovesallsaleofDistrictland.ThiscontractisassociatedwiththesaleofDistrictproperty.2.HISTORYTheDistricthasretainedrealestatelistingservicesinthepasttodisposeofDistrictpropertythatisdeemedinthebestinterestoftheDistricttosell.Theseservicesincludemarketing,showing,andselling.TheDistricthasidentifiedthepropertycommonlyknownastheSteelepropertyassurplus.TheSteelepropertywasaquiredinanegotiationsintheearly2000’sandislocatednorthandwestofourcurrentcorporationyardandentailsthreelargeparcels.TheDistrictwillalsocompleteananalysisofallDistrictpropertyforpotentialsurplusandsale.3.NEWINFORMATIONDistrictstafftriedindependentlytoselltheSteelepropertywithnoresults.Furthermore,in2016,theDistrictcontractedwithDicksonRealtytoselltheproperty.ForthefirstsixmonthsofthecontractunderRonHemig,thepropertywasshownfivetimes.AfterRonHemigleftDisckson,thepropertywasnotshownfortheremainderofthetwoyearcontract.TheDistrictwentourforaRequestforProposals(REP),inMayof2019.Twoproposalswerereceived,reviewed,andanalyzedbyateamofDistrictpersonnel.Thecriteriaselectionwasbasedonexperience,qualityofproposal,efficiencyandcapacity,costproposals,communitynetworkandcontacts,andreferences.SierraSotheby’sproposalencompassedeverythingrequestedintheREP,includingquarterlyreportingofactivityandeconomicanalysis,withacostproposalof6%forsellingtheproperty.CBRE,afirmheadquarteredinSanDiego,withsatelliteofficesintheSacramentoareatoReno,isahighlyqualifiedfirmthathaslargepublicsectorresDonsibitities.However,muchofthoseserviceswerenotreauestedintheREP, furthermore,notneededbytheDistrictto-date.Theservicesincludedintheirproposalhavealargeretainerfeeofalmost$90,000ayear,plusthestandard6%forsellingproperty.TheDistricthasidentifiedRonHemigwithSierraSotheby’sasthemostadvantageouschoicetoretainforrealestatepurposes.RonHemig,isalicensedandinsuredcommercialandresidentialrealestateprofessionalwhomstartedhiscareerTruckeein1992.Mr.HemighasvastknowledgeindevelopmentparticularlyinTruckee,andisvaluableinmarketingandrealestatetransactions.Mr.Hemigalsohasthecommunitynetworkandcapacitytofulfilltherequirementsandaplethoraofreferencesinandaroundthearea.Concluding,Mr.Hemighasthecalibertoachievetherequiredrealestateservicesrequested.4.FISCALIMPACTThefiscalimpactofthiscontractwillbeapercentagebased6%,forsellingDistrictproperty,plusanylegalfeesandclosingcostsassociatedwiththepropertynegotiations.&RECOMMENDATIONAuthorizetheGeneralManagertoexecuteacontractwithSierraSotheby’s,RonHemigforrealestateagentpurposes,termsandconditionstobenegotiatedbytheGeneralManagerandsubjecttoGeneralCounselapproval.fr2DShannaD.Kuhiemier,CMCMichaelD.HolleyDistrictClerkGeneralManager