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HomeMy WebLinkAbout5E Disposal of Proeprty Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 14, 2016 AGENDA #: 5E PREPARED BY: SARAH SCHWARZHOFF, CITY ATTORNEY PRESENTED BY: SARAH SCHWARZHOFF, CITY ATTORNEY AGENDA ITEM: CONSIDER APPROVAL OF ORDINANCE REVISING SECTION 110 OF THE PRIOR LAKE CITY CODE RELATED TO DISPOSAL OF PROPERTY AND A RESOLUTION APPROVING A SUMMARY OF THE ORDINANCE AND AUTHORIZING ITS PUBLICATION DISCUSSION: Introduction The purpose of this agenda item is to request that the city council authorize amendments to the city code relating to disposal of city property and authorizing the summary publication thereof. History Section 110 of the City Code provides procedures for disposal of real property, personal property and unclaimed property. During discussions related to disposal of real property the City Attorney and Finance Director determined that Section 110 should be updated to provide for clearer procedures consistent with current statutory requirements. Current Circumstances The attached ordinance provides procedures for disposing of real property, personal property, and unclaimed property, which are in line with current City practices and consistent with statutory requirements. Conclusion Does the city council believe the proposed revisions accomplish the intended objectives? ISSUES: The attached ordinance provides procedures for disposing of real property, personal property, and unclaimed property, which are in line with current City practices and consistent with statutory requirements. FINANCIAL IMPACT: None. ALTERNATIVES: 1. Motion and second to adopt the ordinance and resolution as part of the consent agenda. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. _____________ AN ORDINANCE AMENDING CITY CODE PART 1 BY REPLACING SECTION 110 RELATING TO DISPOSAL OF PROPERTY AND ADOPTING BY REFERENCE CITY CODE SECTION 104, WHICH AMONG OTHER THINGS CONTAINS PENALTY PROVISIONS. The City Council of the City of Prior Lake, Minnesota ordains: 1. City Code Part 1 is amended by deleting Section 110 in its entirety and replacing it with the following: 110.100: PURPOSE: The purpose of this Section is to establish a means whereby the City may dispose of real or personal property. 110.200: DEFINITIONS: Real Property: Land and all its appurtenances, such as buildings, easements, rights, minerals, crops, and waters. Personal Property: All property that is not real property, except for property that has come into the hands of the Police Department through impoundment which shall be disposed of pursuant to State statute. Dispose Of: To sell, alienate, to furnish with, bargain away or otherwise convey or transfer ownership, but, not including destruction of waste materials or the sale of supplies and materials or other properties by the City in the course of a service being performed by the City in the ordinary scope of its municipal function. 110.300: DISPOSAL OF REAL PROPERTY: Disposal of real property shall be by Council approval. 110.301 Planning Commission: No interest in real property shall be disposed of by the City until after the Planning Commission has reviewed the proposed disposal and reported in writing to the City Council its findings as to compliance of the proposed disposal with the Comprehensive Plan. The City Council may, by resolution adopted by two-thirds vote dispense with the requirements of this subsection when in its judgment it finds that the proposed disposal of real property has no relationship to the Comprehensive Plan. 110.302 Method for Disposal: The City may dispose of real property in a manner deemed by the City Council to be in the City’s interest. The City may dispose of real property through sealed bids, quotes, direct negotiation, auction, donation, exchange, real estate agent, or any other method deemed to be appropriate. The City Manager shall be responsible for preparing and processing the disposal of real property. The City Manager may require from the proposed purchaser a bond, down payment, or other assurances. 2 110.400: DISPOSAL OF PERSONAL PROPERTY: 110.401 Disposal: Disposal of personal property owned by the City shall comply with the provisions of Minnesota Statutes, section 471.345, Uniform Municipal Contracting Law, as amended from time to time, which is incorporated herein by reference. 110.402 Method of Disposal. When City equipment, furniture, computers, vehicles or other personal property has been replaced, is no longer needed, is no longer in working condition and repair is not cost-effective, or is otherwise appropriate for disposal the City may dispose of the personal property using the following methods: (1) sealed bids pursuant to Minn. Stat. 471.345, Subd. 6; (2) direct negotiation pursuant to Minn. Stat. 471.345, Subd. 4; (3) open market pursuant to Minn. Stat. 471.345, Subd. 5; (4) electronic sales pursuant to Minn. Stat. 471.345, Subd. 17; (5) donation pursuant to Minn. Stat. 471.3455 or 471.3459; (6) recycling or disposal as refuse; (7) “trade-in” to offset the cost of replacement equipment; or (8) any other manner permitted by law and approved by the City Council. The City Manager shall determine the appropriate method of disposal of personal property. 110.500: RESTRICTIONS ON SALE TO CITY EMPLOYEES: No real or personal property shall be sold to any officer or employee of the City except that real or personal property may be sold to an employee of the City after reasonable public notice at a public auction or by sealed response, if the employee is not directly involved in the auction or process pertaining to the administration and collection of sealed responses. 110.600: DISPOSAL OF UNCLAIMED PROPERTY HELD BY THE CITY: Whenever any property of any nature, exclusive of any motorized vehicle, lawfully comes into possession of the City in the course of the municipal operations of the City such property may be disposed of as follows: 110.601: True Owner: The City may deliver the property to the true owner thereof upon proof of ownership, and upon ten (10) days’ notice by mail to other persons who may assert a claim of true ownership. In the event ownership cannot be determined to the satisfaction of the City Manager or his/her designee, the City Manager may refuse to deliver the property to anyone until ordered to do so by the court. The City Manager may deposit the property with the court if there are sufficient competing claims to the property. 110.602 Finder: If the true owner does not claim the property within a period of three (3) months, the City may release the unclaimed property to the finder of the property if, at the time of the delivery to the City, the finder indicated in writing that the finder wished to assert a claim to the property as finder. This division is not applicable if the property was found by a City employee in the ordinary course of that employee’s duties. 110.603 Sale: If the property is not disposed of as provided in subsect ion 110.601 or 110.602 after a period of three (3) months, the City may dispose of the property by the Chief of Police conducting a public auction or sale or using a public auction service. The public auction or sale shall be proceeded by ten (10) 3 days' published notice describing the property found or recovered and to be sold, and specifying the time and place of the sale. The notice must be published at least once in a legal newspaper published in the City. If a public auction service is used the notice shall be published once each calendar year. If any such property is perishable or subject to decay by keeping, it may be sold within ten (10) days, upon five (5) days' published notice, and if any such property be in a state of decay or manifestly liable to decay, it may be summarily sold by order of the Chief of Police, after inspection, without notice. All unclaimed property sold at such auction or sale shall be sold to the highest bidder. 110.604 Disposal: All unclaimed property which is not sold when offered for sale as provided in subsection 110.603 shall become the property of the City and may be destroyed or disposed of as directed by the Chief of Police. All unclaimed property which may not be offered for sale or sold according to law may, after sixty (60) days, be disposed of or destroyed as directed by the Chief of Police after notice of disposal has been given in the manner provided by this Section for saleable unclaimed property. 110.605 Funds: All funds received from sale of property shall be deposited in the general fund subject to the right of the former owner to payment of the sale price from the fund upon application and satisfactory proof of ownership within six months of the sale. 2. City Code Section 104 entitled “General Penalty” is adopted in its entirety by reference, as though repeated verbatim. 3. This Ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 14th day of November, 2016. ATTEST: _________________________ __________________________ Frank Boyles, City Manager Kenneth L. Hedberg, Mayor Published in the Prior Lake American on the 19th day of November, 2016. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE NO. _____ AND ORDERING THE PUBLICATION OF SAID SUMMARY Motion By: Second By: WHEREAS, On November 14, 2016, the City Council adopted Ordinance No. ____ amending Part 1 of the Prior Lake City Code by replacing Section 110 relating to disposal of property; and WHEREAS, Minnesota Statutes requires publication of an Ordinance in the official newspaper before it becomes effective; and WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the Council finds that the summary is an accurate representation of the Ordinance; and WHEREAS, The City Council desires to publish a summary of the amendments to Part 1 of the Prior Lake City Code and has determined the publication of a summary of this ordinance will meet the intent of the statute. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Ordinance No. _____________ is lengthy. 3. The text of summary of Ordinance No. __________________, attached hereto as Exhibit A, conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform the public of the intent and effect of the Ordinance. 4. The title and summary shall be published once in the Prior Lake American in a body type no smaller than brevier or eight-point type. 5. A complete text of the newly amended City Code will be available for inspection at City Hall or in the Document Center on the City of Prior Lake Website after November 19, 2016. PASSED AND ADOPTED THIS 14th DAY OF NOVEMBER 2016 VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ _____________________________ Frank Boyles, City Manager 2 Exhibit A SUMMARY ORDINANCE NO. __________ CITY OF PRIOR LAKE ORDINANCE NO. _________ AN ORDINANCE AMENDING CITY CODE PART 1 BY REPLACING SECTION 110 RELATING TO DISPOSAL OF PROPERTY AND ADOPTING BY REFERENCE CITY CODE SECTION 104, WHICH AMONG OTHER THINGS CONTAINS PENALTY PROVISIONS. The following is only a summary of Ordinance No. ____________. The full text will be available for public inspection after ______________ by any person during regular office hours at City Hall or in the Document Center on the City of Prior Lake Website. SUMMARY: The Ordinance amends Part 1 of the City Code by replacing Section 110 relating to disposal of property. The Ordinance sets forth the procedures for the disposal of real property, personal property and unclaimed property. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 24th day of October 2016. ATTEST: _________________________ __________________________ Frank Boyles, City Manager Kenneth L. Hedberg, Mayor Summary published in the Prior Lake American on the _____ day of ___________, 2016.