HomeMy WebLinkAboutMINUTES - 02052002 - C85 Ta:
HOAREk OF SUPERVISORS Contra
FROM: Barton J. Gilbert,Director ofGeneral Services Costa
DATE: February 5,2002 CdUrit '
SUBJECT: REAL ESTATE COMMISSION POLICY
SPECIFIC REOT.IESTS OR'RECOMMENBATIGTN(S)&BACKGRt3 ND AND JUS'n [CATION
1. RECOMMENDATION
APPROVE Real ';Estate' Commission Policy and AUTHORIZE the Director of General Services to
implement the policy.
11. FISCAL IMPACT
It is anticipated L that adoption of the proposed policy will reduce lease costs L and potentially generate new
revenge for the general fund. Adoption of the policy will not negatively impact the L general fund.
111. BACKGROUND'
The Generat Services Department Lease Management Division administers leases for over 200 buildings
to Support County operations. There are times when property that the County would like to lease is listed
with a real estate broker. Presently, the listing agent retains the entire commission for these transactions.
Commission rates are negotiated between the listing agent and the property owner and vary as a
percentageLLof thegross value of the lease. Commissionrates for commercial real estate transactions are
typically 4%to ��1�. The Lease Management Division has been involved in,severl real estate transactions
over the past feWL years in whichL the property was listed with a real estate broker.
The General Services Department believes L that it is appropriate that the County share L in these
commissions L, in the same manner that some other counties do. Other counties that have adopted real
estate cornrnission policies, include Las Angeles and Grange counties, which adopted their policies in
1992 and LSolano County,which Ladopted a policy in 1994.
CONTINUED ON ATTACHMENT: -'X YES SIGNATURE:
ECOMMENDATION OF C'LO NTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
--"APPROVE L OTHERI
' r
SIGNATT TRE S
ACTION OF BOARD I' =' APPROVED AS RECOMMENDED L OTHER
VOTE OF SUPERVISORS
UNANIMOUS(ASSENT
AYES: ! NOES
ABSENTS: ABSTAIN:
MEDIA CONTACTBARJ.'GILBERT(313-71OO)
06ginafing L Crept.:General Services DePartmenE I HEREBY CERTIFY THAT THIS IS A TRUE
cc: Adm nistratissn AND CORRECT COPY OF ANL ACTION TAKEN
Accounting AND ENTERED ON THE MI NUTES OF THE BOARD'
Lease Managernen# OF SUPERVISORS ON THE DATE SHOWN.
County Administrator's Office
County Counsel ATTESTEDa Y
Audltor•Gontroller(via GSD) JON ETEN'CLER THE B ARB OF SUPERVISORS
AND COUN T Y ADMINIS TOR
l
BY r,€ I , ' '' DEPUTY
F:\Mike fango\BOReal Estate Comm Policy Feb52002.doc Page I of 2 M382(10/88)
REAL ESTATE COMMISSION POLICY February 5,2002
If the'attachedpolicy is adopted,the General Services Department proposes to inform the local brokerage
conunity that it is the; policy of Contra Costa County that, when.a building or space in a building is
leased to the County or one of the agencies or districts governed by the Beard of Supervisors,its principal,
through the procuring efforts of the Lease Management Division of the General Services Department, and
the landlordis using a real estate broker in the leasing transaction.,the lease document will rewire that the
landlord pay or rebate to the County an amount equal to 50%of the broker's commission.
FAMike Lango\BOReal Estate Comm Policy Feb52002 doc Page 2 of 2 M382(10/88)