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HomeMy WebLinkAboutord1990-126y_ 4TCOM COUNTY COUNCIL AGENDA BILL NO. 90 -414 CLEARANCES: V nitiaLA Dated Date Received in Council officee Aaenda Date_ IAssianed Ta! H Head - t Head - r Review Bud et Dir.- ►ti1- on E 0 E � W r_-1 lj� E 10 1QQO WHATCOM COUNTY COUNCIL SUBJECT-' Property Management Ordinance A7TACHMENTS: Memo Ordinance SUMMARY STATEMENT: 11 /27 /90ICouncil- Intro 112/11/901 Finance /Council ti- Public Hearing Needed? Yes /xx Y No /� The Management of County Real and Personal Property must be done by strictly adhering to chapter 36:34 RCW. However, RCW 36.45.005 allows the County to establish comprehensive procedures for the management of County property consistent with the public interest. Passage of this ordinance will exempt the County from the provisions of this chapter and allow more flexibility with regards-to the management of our properties. ORIGINATOR'S RECOMMENDED ACTION.- Recommend setting date for public hearing. COMMITTEE ACTION (including dates): COUNCIL ACTION (including dates): 12- 11 -90: council passed 7 -0 Related File Numbers: Ordinance or Resolution Number: ORD90 -126 prop.ord 12/11/90 SPONSORED BY: Consent SUBSTITUTE PROPOSED BY: Treasurer INTRODUCTION DATE: 11 -27 -90 1 ORDINANCE NO. 90 -126 2 ESTABLISHMENT OF PROCEDURES FOR 3 MANAGEMENT AND DISPOSITION OF COUNTY OWNED PERSONAL AND REAL PROPERTY WHEREAS, the current procedure for management and disposition of county owned pro errttyy is determined by vanous state statues with RCW 36.34.005 allowing for the establishment of comprehensive procedures for the management of county property; and WHEREAS, it is in the best interest of the public to supplement the authority already granted by law; NOW, THEREFORE, BE IT ORDAINED by the Whatcom County Council that the following section of Whatcom County Code shall be amended as indicated: "3.08.020 Chapter application. The policy, procedures and requirements contained in this chapter shall apply to all contracts for public works and purchases and leases of supplies, materials, and equipment for all departments of the county, excejt such as shall be made pursuant_ to RCW 36.77.060, RCW 36.82.130. . All departments of the county shall have a copy of the ordinance codified in this chapter, and any vendor doing business with the county shall have a copy upon request." BE IT FURTHER ORDAINED that Whatcom County. Code Sections 3.08.160 and 3.08.170 are hereby repealed with all other sections to remain in effect, and the text of Exhibit A is hereby adopted and shall be incorporated into the Whatcom County Code. ADOPTED this 11th day of DeceTber , 1990 ATTEST: Aa , - - , /,21� Ram- amona eeves, Council Clerk APPROVED AS TO FORM: Civil Deputy Prosecutor WHATCOM COUNTY COUNCIL WHATCOM COJ4NTY, WASHINGTON (4 Approved v ( ) Denied Shirley Van Zan n,Execiftiie Date: Exhibit "A" to Ordinance 90 -126 WHATCOM COUNTY CODE CHAPTER 1.10 PROCEDURES FOR MANAGEMENT AND DISPOSITION OF COUNTY -OWNED PERSONAL AND REAL PROPERTY Article I. DEFINITIONS. 1. 10.010 County Council. The County Council is defined for purposes of this Chapter as the governing authority of Whatcom County, as established by the Whatcom County Charter. 1. 10.020 Estimated Market Value. Estimated market value is defined as an amount in the competitive market that a well informed and willing buyer or lessee who desires but is not required to buy or lease, would accept, and which a well informed and willing seller or lessor who desires but is not required to sell or -lease, would pay for the purchase or use of the premises, after due consideration of all the elements reasonably affecting value. 1.10.030 Lot. A lot is defined as a number of goods of a like kind, serving a similar purpose. 1. 10.040 Emergency. Emergency is an occurrence whereby County property wbuld suffer material injury, loss or damage by delay of action. 1.10.050 Worthless Property. Worthless property is that property which when processed in the manner most advantageous to the County cannot reasonably be sold for an. amount sufficient to recoup the cost of sale or of disposal. 1. 10.060 Tax Title Property. Tax title property shall mean all real property acquired by the County for lack of other bidders at a tax foreclosure sale. 1.10.070 County Real Property. All County owned real property which is not tax title property. 1. 10.080 Public Sale. Public sale means either sale by public auction or by award to the highest responsive and responsible bidder following an advertised call for sealed bids. - 1- ARTICLE II GENERAL AUTHORITY 1.10.090 Establishment of Comprehensive Procedures for County Property Management. Comprehensive procedures for the management of County real, personal and tax title property as established by this Ordinance, authority for which is granted in R.C.W. 36.34.005, are deemed to be in the best interest of the public. 1.10.100 Severability. If any provision of. this Ordinance or its application to any person or circumstances is held invalid, the remainder of this Ordinance or its application to other persons or circumstances, shall not be affected. 1.10.110 Reservation of Powers. This Ordinance shall be supplemental to authority otherwise granted by law and Whatcom County retains all powers now or hereafter granted by law for the management of the County's property. ARTICLE III PROPERTY MANAGEMENT COMMITTEE 1.10.120 Property Management Committee - Creation. A Property Management Committee shall. be established comprised of the following members or their designees: the County Executive, Assessor, Director of Parks, Director of Planning, Director of Public Works, Purchasing Agent and Treasurer. Additional seats upon the Committee may be created by majority vote of its members. 1.10.130 Property Management Committee - Goals and Duties. Property management recommendations and decisions shall be based solely upon the best interest of the public. County Real Property and Tax Title Property: For real property and tax title property, considerations in determining what is in the best interest of the public shall include maintaining an adequate revenue base by returning tax title property to the tax rolls, identifying and retaining potential open space, recreational-and ecologically sensitive property for public benefit, preserving the integrity of County Comprehensive Land Use Plans, identifying and disposing of property with little present or future value and maximizing return in the sale or lease of County property. The Property Management Committee shall annually review and make recommendations concerning the use and disposition of County owned real property. The Property Management Committee shall twice annually review and make recommendations concerning the use and disposition of tax title property. Personal Property: For personal property, considerations in determining what is in the best interest of the public shall include maximizing the efficient use of County -2- property, maintaining a high level of public awareness while acquiring and disposing of County property, obtaining the best values and returns in acquiring and disposing of County property and the prompt, fair and efficient disposal of worthless property. ARTICLE IV PERSONAL PROPERTY 1.10.140 Duty to Maintain Inventory of Personal Property. Each County department head shall submit annually to the County Purchasing Agent an inventory, current as of a date set by the Property Management Committee, of all County owned personal property showing date of acquisition, cost, and if not purchased, the method of acquisition, current departmental custodianship and location. The annual 'date of inventory submission will be set by the Property Management Committee. Where- methods of assigning a number to each article are impractical, methods of accounting by class or in bulk may be established. Each proprietary fund shall inventory personal property owned by the fund according to its own established inventory process, and shall submit a copy of its inventory to the County Purchasing Agent as of a date established by the Property Management Committee. Property held by the Sheriff from a criminal investigation, seizure, forfeiture or abandonment. shall be exempt from the provisions of this Ordinance. 1.10.150 Duty to Determine Surplus Property. All County departments shall promptly advise the Purchasing Agent of any personal property which is surplus to the department's needs, and the Purchasing Agent, when so advised, shall: (a) Determine whether another department has a need for the property and, if so, transfer custodianship to that department at such value as is required by law; (b) If no other department has a current need for such property the purchasing agent shall review whether the following are financially advantageous: ( 1 ) Trade in of the property; (2) Lease to a non - governmental agency; (3) Sale or lease to another governmental agency. (c) If the property has a value less than $10,000, the Purchasing Agent may authorize any of the above uses. If the property is valued over $10,000 the Purchasing Agent,, may authorize trade in when purchasing replacement property, but otherwise the Purchasing Agent shall make the appropriate -3- recommendation to the County Council who shall dispose of the property in the manner herein provided. 1.10.160 Purchasing Agent - Duty to Surplus Property. Personal property which determine to be surplus shall be appraised Agent and an estimated market value shall be Purchasing Agent exercising his best profes making a good faith determination as to property. Determine Value of County departments by the Purchasing established by the sional judgment in the value of the 1.10.170 Worthless Property. Where the Purchasing Agent determines surplus personal property worthless and without value, the property shall be disposed of by the Purchasing Agent in the most cost efficient manner. The Purchasing Agent shall keep a record of the nature and condition of the property and the date and means of its disposal. In the event the value at the site is less than the cost of hauling to another place of use or disposal, the Purchasing Agent may donate the property to any person or entity, provided a record be kept by the Purchasing Agent of the name and address of the recipient and the property received. In no event shall the property be given to County employees or members of their families. 1.10.180 Authority to Dispose of Personal Property. Whenever the Purchasing Agent submits a list of surplus personal property to the County Council, and the Council finds by Resolution, following a public hearing, that it is in the best interest of the people of Whatcom County to sell or lease said property, the property shall be sold- or leased under the limitations and restrictions and in the manner herein provided. The Purchasing Agent may declare property worthless under WCC 1.10.170 or trade in property under WCC 1.10.150 without approval of County Council. 1.10.190 Notice of Public Hearing. The Notice of public hearing of intenti.on to sell personal property at auction must be published in a legal newspaper of general circulation at least once a week for twv (2) consecutive weeks, the last Notice to. appear not more than five (5) days prior to the date of hearing. The Notice for public hearing must particularly describe the property to be sold, the day, hour and place the hearing is to be held. However, where applicable, the property may be described by lot rather than item. Additionally, the Notice of Public Hearing shall be posted in a conspicuous place in the Courthouse not less than five (5) days prior to the hearing. 1.10.200 Advertisement of Sale - Requirements. Where the County Council adopts by Resolution the sale of surplus personal property the property may be sold at a public sale following publication of a Notice in a legal newspaper of general circulation at least once a week for two (2) consecutive -4- weeks, the last Notice to appear not more than five (5) days prior to the date of sale. The advertisement for sale must particularly describe the property to be sold and designate the day, hour and the place of sale. However, where applicable, the property may be described by lot rather than item. Additionally, the advertisement for sale shall be posted in a conspicuous place in the Courthouse not less than five (5) days prior to the sale. The advertisement shall advise interested purchasers where the items to be sold will be available for public inspection during at least one (1) business day at least twenty -four hours prior to the sale. 1.10.210 Sale of County Personal Property - Public Sale. Personal property shall be consolidated and aggregated for disposal at public auction yearly or as often as practicable, except as otherwise provided below. The auction shall be planned and scheduled by the Purchasing Agent with the assistance of the Public Works Equipment Manager, the Superintendent of Building Maintenance, and the County - Treasurer, under the policy direction of the Property Management Committee. Sales of County personal property shall be made to the highest responsive and responsible bidder at public sale except when: (a) Sold or transferred to a governmental agency; or, (b) The County Council has determined an emergency to exist; or (c) County personal property is traded in on the purchase of a replacement; or, (d) Where the County Council declares the item of personal property to be a specialty or unique item with an estimated market value in excess of $1,000. (e) Where there is no bid within the advertised terms the County may withdraw the property from sale, or if the County deems such action to be in the public interest, reject any and all bids either written- or oral, and thereafter negotiate the sale of the property, providing the negotiated price is higher than the highest bid at the public sale and that the public has Notice by advertisement, under 1.'10.190, and an opportunity. to compete, through mailed bids, for purchase by offer of a more favorable price, but in no event shall County personal property be sold to a County official or employee who participated in the decision to declare the property surplus, or who has direct responsibility for any aspect of the surplus sale. 1.10.220 Title. In no case shall the title to any item of County personal property be transferred until the purchased price has been paid. -5- 1.10.230 Disposition of Proceeds. The County departments responsible for conducting sales or leases shall be reimbursed for advertising, postage and fees, if any, from the proceeds of the sale. The balance of. the proceeds shall be credited by the County Treasurer to the County fund from which the original purchase price was paid, if known. Otherwise, proceeds will be credited to the Current Expense Fund. 1.10.240 Intergovernmental Sales - In Excess of 1 000. Whatcom County may dispose of or lease County property to another governmental agency and may acquire or lease personal property for the County from another governmental agency by negotiation, upon such terms as may be agreed upon and for such consideration as may be deemed adequate by the County Executive. 1.10.250 County Personal Property - Trade In - In Excess of 51.000. The County may trade in property belonging to the County when purchasing replacement property. If the County elects to trade in property, it shall include in any call for bids on the property to be purchased a Notice that the County has for sale or trade in property of a specified type, description and quantity which will be sold or traded in on the same day and hour that the bids on the property to be purchased are opened. Any person may bid for the purchase of such trade in property and any supplier may include in its offer to supply an offer to accept the designated County property trade in by setting forth in the bid the amount of such allowance. . In determining the lowest and best bid the County shall consider the net cost to the County after trade in allowances have been deducted. The County may accept the bid of any bidder without trade in of the County property, but may not require any such bidder to purchase the County property without awarding the bidder the purchase contract. Anyone may make an offer for the purchase of the used equipment independent of a bid on the new equipment and the County shall consider such offers in relation to the trade in allowances offered to determine the net best sale and purchase combination for the County. 1.10.260 Specialty or Unique Personal Property. Where the County Council by Resolution finds it in the best interest of the County to sell specialty or unique pieces of personal property which includes but is not limited to computer systems, communication equipment, electrical components and heavy equipment, with an estimated market value in excess of $1,000, it may authorize the County Purchasing Agent to enter into negotiations for sale of the item for a price not less than 90% of the estimated market value. If a sale is negotiated the public will be given two (2) weeks notice by advertisement, in a legal newspaper, and an opportunity to compete for the item's purchase by mailed bids. The advertisement shall describe the item with particularity and state the item's negotiated sale price. In no event shall the County award a bid to any County employee or a member of the employee's family. -6- ARTICLE V REAL AND TAX TITLE PROPERTY 1.10. 270 Duty to Inventory and to Declare Real Property Surplus. Each County department having custodianship over County real .property shall, no later than a date established by the Property Management Committee annually submit to the County Treasurer a current inventory of all its County owned real property showing cost, if known, method of acquisition, present estimated market value, special characteristics, and improvements affecting its economic value and potential uses. The County Treasurer will keep a comprehensive list of the County's real property. County departments having custodianship of real property shall state the present use of each parcel on its inventory and whether all or part thereof is being used. For parcels or portions of parcels not in use, said departments shall state the future probability of use and estimated date of usage. These statements shall be in writing and forwarded to the County Treasurer no later than a date established by the Property Management Committee each calendar year. Upon receipt of the above information, the County Treasurer shall present same to the Property Management Committee. The Property Management Committee, along with the appropriate departmental custodian, shall review and make recommendations to the County Executive regarding the status of each lot, tract, parcel or other interest included in the real property inventory. The County Executive shall submit said recommendations, with or without comment, to the County Council for final action. Recommendations, may be for any one of the following actions: use; (a) Retain the property for its present use; (b) Retain the property and change the manner of County (c) Declare the property surplus and sell it; (d) Transfer property to another County department; (e) Exchange property for privately or publicly owned lands that better meet County land needs; (f) Sell or lease property to non - governmental parties; (g) Sell or lease property to other governmental agencies. 1.10.280 Tax Title Property. The County Treasurer shall, no later than a date set by the Property Management Committee each year, prepare an inventory of all tax title -7- property. Upon completion of said inventory, the County Treasurer shall present same to the Property Management Committee. The Property Management Committee shall review and make recommendations to the County Executive concerning the disposition of each lot, tract, parcel or other interest included in the tax title inventory. The County Executive shall submit said recommendations with or without comment, to the County Council for final action. Recommendations may be for one of the following actions: (a) Offer the property for public sale; (b) Convey the property to the County in its proprietary capacity; (c) Rent or lease the property; (d) Exchange the property with another governmental or municipal agency for lands of substantially the same market value; (e) Retain the property in its current status. The County Treasurer shall maintain a list of all tax title property for which sale requests have been received since the last tax title property sale and twice each year submit same to the Property Management Committee. Within thirty (30) days of each submission, the Property Management Committee shall review and make recommendations to the County Executive concerning the disposition of each lot, tract, parcel or other interest included on said list. The County Executive shall submit recommendations, with or without comment, to the County Council for final action. _ 1. 10.290 Property Management Committee - Duty to Determine Estimated Market Value of all Real Property and Tax Title Property Recommended for Sale. The Property Management Committee shall obtain -and provide to the County Council an estimated market value' for all County real and tax title property recommended for sale to the County Council. The County may contract with independent appraisers to obtain the estimated market values. 1.10.300 Disposition of County Tax Title Property. Disposition of County tax title property shall be made pursuant to the powers, procedures and notice requirements contained in Title 84.64.270 RCW and 36.35 RCW. 1. 10.310 Authority to Dispose of County Real Property. Within sixty (60) 'days following receipt of the estimated market values, the County Council shall hold a public hearing on the Property Management Committee recommendations. Following the -a- hearing, if it is deemed to be in the best interest of the people of Whatcom County to sell all or part of said property, the Council shall adopt a Resolution to that effect and the property shall be sold under the limitations and restrictions and in the manner herein provided. In making such sales of County real property and tax title property, the County may sell or reserve any rights to timber, minerals, or other resources on any land owned by the County separate and apart from the land in the same manner and upon the same terms and conditions as provided in this Ordinance for the sale of real property. 1.10.320 Notice of Public Hearing. Notice shall be provided of the public hearing at which the County Council will consider sale of County real property as authorized herein. The Notice of Public Hearing must be published in a legal newspaper of general circulation at least once a week for three (3) consecutive weeks, the last notice to appear not more than ten (10) days prior to the date of hearing. The notice for public hearing must contain both the street address, if. available, and the legal description of the property, its estimated market value, and designate the day, hour and the place of the public hearing. The notice shall also state which methods contained in 1.10.340 are under consideration for disposition of the property. If the property is offered -for sale on other than a cash basis, the terms must be stated in the notice. Additionally, the notice of public hearing shall be posted in a conspicuous place in the Courthouse not less than ten (10) days prior to the hearing. The County Council shall be responsible for publishing or posting all above referenced notices. 1.10.330 Advertisement of Sale - Recruirements. Where the County Council adopts by Resolution the sale of County real property, the property may be sold at a public sale following publication of a Notice in a legal newspaper of general circulation at least once a week for three (3) consecutive weeks, the last Notice to appear not more than ten (10) days prior to the date of sale. The advertisement for sale must contain both the street address, if available, and the legal description of the part and parcel, its estimated market value, and designate the day, hour and the place of sale. If the property is offered for sale on other than a cash basis, the terms must be stated in the advertisement. Additionally, the advertisement for sale shall be posted in a conspicuous place in the Courthouse not less than ten (10) days prior to the sale. Sales of tax title property must comply with R.C.W. 84.64.270, and with 1.10.340, if applicable. 1.10.340 Sale of County Real Property. All sales of County real property shall be under the direction of the Whatcom County Treasurer and shall be made to the highest responsible bidder at a public sale except when: -9- (a) Sold to a governmental agency; or, (b) Sold to a non - profit agency when determined to be in the public interest'; (c) The County Council has determined an emergency to exist; or, (d) The County real property is traded for real property of equal or greater value; or, (e) The County Council finds, after public hearing, that it is in the best interest of the public to list the real property for sale through a licensed Real Estate Agent. (f) Where there is no public bid at or above the estimated market value, the Property Management Committee may (i) List the property for sale through a licensed Real Estate Agent; or, (ii) Negotiate the sale of the property at a price less than estimated market value; or, (iii) Withdraw the property from sale. 1.10.350 Purchase of County Real Property by County Employees. County officials or employees who participated in the decision to declare real property to be surplus or who have direct responsibility for any aspect of the surplus sale may not directly or indirectly bid for such property at public sale. In no event shall County real property be sold directly or indirectly to a County employee through private negotiation as outlined in 1.10.340(f). 1.10.360 Bids from Real Estate Brokers to Negotiate Sales or Lease of County Real and Tax Title Property. Where the County elects under 1.10.340 subparagraph (e) or (f)(i), to negotiate the sale of County real property, or elects under 1.10.400 to negotiate the lease of County real or tax title property, the County Treasurer may select a real estate broker from the County's annual RFP list to facilitate negotiated sales or leases of the property. 1.10.370 Intergovernmental Sales and Leases. Whatcom County may sell or lease County property to another governmental agency and may acquire real property for the County from another governmental agency by negotiation, upon such terms as may be agreed upon and for such consideration as may be deemed adequate by Whatcom County, without entering into the public bidding process. 1.10.380 Disposition of Proceeds of Sales. The Whatcom County Treasurer is authorized to establish such funds _10- and accounts as may be necessary to deposit sale or lease proceeds until final disposition. The proceeds derived from the sale or lease or other use of tax title property shall be distributed in accordance with state law, provided that the County Departments responsible for conducting sales or leases shall be reimbursed from the proceeds of the sale or lease for costs of title searches, advertising, postage and fees. 1.10.390 Title. Upon receipt of sufficient consideration, the County Treasurer shall execute the proper documents transferring title attested to by the County Auditor. In no case shall title be transferred until the purchase price has been fully paid. ARTICLE VI LEASING COUNTY REAL OR TAX TITLE PROPERTY 1. 10.400 Authority to Lease. Where it appears to be in the best interest of the County and the .people thereof, Whatcom County may lease or rent any County real or tax title property and its appurtenances. Such leases may be entered into pursuant to public bid, listing with a licensed Real Estate Agent or application from private parties. In making such lease of County real property and tax title property, the County. may lease or reserve any rights to timber, minerals, or other resources on any land owned by the County separate and apart from the land in the same manner and upon the same terms and conditions as provided in this Ordinance for the sale of real property. Any lease or rental agreement executed under the authority provided herein creates a vested interest in a contract binding upon the County and the lessee. Prior to any lease or rental of tax title property the terms thereof must be approved by resolution of the Board of Directors of the School District which would, under state law, be entitled to share in the proceeds of the income received thereof at the time the agreement is executed. 1.10.410 Lease -Review Guidelines and Lease Approval. The County Executive shall have the authority to lease 'County real or tax title property; Provided that, the Property Management Committee shall establish written guidelines which shall determine when the County Executive must refer a proposed lease to the Property Management Committee for review and recommendation and to the County Council for*approval. Where Property Management Committee guidelines require County Council approval for a proposed lease, any decision on said proposed lease must be made by resolution after a public hearing. The notice of public hearing shall comply with 1.10.320. The resolution must indicate whether the lease should be submitted to public bid, listed through a licensed Real Estate Agent or awarded by private negotiation with interested parties. - 11- 1. 10.420 Leas incr - Public Bids. When the County Council finds by resolution it is in the best interest of the public to lease property pursuant to mailed bids it shall give notice in a legal newspaper of general circulation at least once a week for three (3) consecutive weeks, the last notice to appear not more than ten (10) days prior to the date of bid opening. The notice must contain both the street address, if available, and the legal description of the property, its estimated market value, and designate the day, hour and the place of the bid opening. The lease shall be awarded to the highest responsible bidder: Provided, that whenever there is reason to believe that the highest acceptable bid is not the best rental obtainable, all bids may be rejected.and the County Council may call for new bids or enter into direct negotiations, to achieve the best possible rental. In determining "highest responsible bidder," the following elements may be considered: -1. The character, integrity, and reputation of the bidder; 2. The previous and existing compliance by the bidder with the terms of other leases of County real property; 3. Such other information as may be deemed relevant to the decision to award the lease, including the uses to be made of the property. 1. 10.430 Application to Lease - When Required. Private parties desiring to rent or lease County real or tax title property should submit an application to the County Treasurer. When lease approval is required by the County Council, the County Treasurer may require a deposit in a reasonable amount to accompany all applications to lease. If the applicant is successful in leasing the property the deposit shall be credited toward the first month's lease payment. If the applicant is unsuccessful in leasing the property the deposit shall be returned to the applicant unless, the applicant fails or refuses to comply with the terms of the application or to execute the lease, in which case, the deposit shall be forfeited to the County and shall be placed in the current expense fund. If the County *Council finds by resolution, subsequent to a public hearing, it is in the best interest of the public to lease the property to the applicant or other interested parties, a lease may be executed without being submitted to public bid. The notice of public hearing shall comply with 1.10.320. 1.10.440 Lease Terms. County real and tax title property may be leased for a term of years and upon such terms and conditions as may be deemed in the best interest of the public. - 12- 1.10.450 Rental Adiustment Requirements - Long Term Leases. Any lease subject to approval by the County Council which is for a term of longer than five (5) years shall contain a provision requiring the lessee to permit the rental payments to be adjusted and fixed by Whatcom County every five (5) years; Provided that . any lease may provide for more frequent readjustments. When the lease permits Whatcom County to adjust the rent, the County will give the lessee written notice of the adjusted rent, in accordance with the terms of the lease. The rent as adjusted shall take effect no sooner than as provided by the lease and then 30 days after date of said notice unless lessee, within 30 days following receipt of notice from Whatcom County gives written notice of rejection of the adjusted rent. If the lessee and the County cannot agree upon the rental adjustment, the rent for the period will be adjusted by arbitration. The lessee and the County will select one (1) disinterested arbitrator each, and the two (2) selected arbitrators will select a third. If the two (2) arbitrators have not selected a third arbitrator within 30 days after the selection of the last selected of the two, either lessee or the County may apply to the presiding judge of the Superior Court in Whatcom County for the appointment of a third arbitrator. Each arbitrator will be a member of the American Institute of Real Estate Appraisers, or of the Association having equivalent ethical and professional standards. The three (3) arbitrators will determine a fair rent for the premises based upon the estimated market value of the property, as previously defined. The decision of a majority of the arbitrators will bind both lessee and the County. At the conclusion of the arbitration, the arbitrators will submit written reports to the lessee and the County. The cost of the arbitration will be divided equally between the lessee and the County. 1.10.460 Administration of Leases. Each department shall be responsible for administrating all leases of County real or tax title property for which it is custodian. -13-