HomeMy WebLinkAbout5L - Disposal of Personal Property
MEETING DATE:
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PREPARED BY:
AGENDA ITEM:
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ISSUES:
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
April 16, 2007
5L
Kelly Meyer, Assistant City Manager
CONSIDER APPROVAL OF AN ORDINANCE AMENDING SECTION 110 OF
THE CITY CODE RELATED TO DISPOSAL OF PERSONAL PROPERTY.
Introduction: Section 110 of the City Code provides procedures for the disposal
of (1) real property, (2) personal property, and (3) unclaimed property (which
refers to property seized by the Police Department in the course of business).
The ordinance was last reviewed in 1999 when the City reviewed and re-
codified the City Code and Zoning Ordinance.
Current Circumstances: The current ordinance provides for a detailed
procedure for the disposal of real property (land). The Council is familiar with
this process. It was used in the sale of the Rock Creek Building site, as well as
the old T J Towing site. Staff is proposing no amendments to that process,
The ordinance also provides for the disposal of unclaimed property seized by
the Police Department at public auction or sale, and establishes the notice
requirements. Staff is proposing no amendments to those provisions of the
ordinance.
The ordinance does not provide a clear process for disposing of items such as
old computers, furniture, or miscellaneous equipment that has been replaced
or is no longer in working condition. Typically these items are of minimum
value.
Conclusion: The purpose of this agenda item is to update the ordinance to
provide more specific procedures and flexibility in the disposal of surplus
personal property while complying with all of the requirements of the state
competitive bidding and contracting statutes.
Below is a summary of the amendments proposed dealing with surplus
personal property. The exact language is provided in the attached ordinance.
A red-lined version of the full ordinance is also provided.
New Section 110.402 - provides that any personal property to be disposed of
must first be declared surplus by the City Council.
New Section 110.403 - provides several methods for disposition of the
personal property, including (1) public auction, (2) direct sale to the public, (3)
donation to a non-profit organization of other governmental unit if the donation
serves a public purpose, (4) disposal as recycling or refuse, or (5) disposal as
a "trade-in" to offset the cost of replacement equipment. The ordinance
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Phone 952.447.9800 / Fax 952.447.4245
provides that the City Manager is responsible for determining the manner of
disposal in accordance with the ordinance.
New Section 110.404 - Clarifies the procedures for disposal of surplus
personal property by direct sale to the public, If the value of the item to be sold
exceeds or is in the range established by Minnesota statutes section 471.345,
subdivision 4 ($10,000-$50,000), the item must be disposed of through sealed
bids. If the value of the item is equal to or less than the amount set forth in MN
Stat. section 471,345, subdivision 5 (less than $10,000), the disposal may be
done by sale or auction.
New Section 110.405 - Clarifies the notice required for any disposal of surplus
personal property by direct sale.
Section 110.500 - More specifically clarifies that City employees shall not have
an advantage over the general public when surplus property is disposed of by
direct sale to the public.
Amendments to the ordinance provide more flexibility to dispose of surplus
equipment that has minimal value. Utilization of City buildings to store surplus
equipment is not an effective use of space. The process proposed provides for
notice to the public, is a more efficient and practical means of disposing of
surplus property, and should provide for a reasonable financial return. This
procedure is consistent with the process used by other communities to dispose
of surplus personal property.
ALTERNATIVES:
1. Motion and Second to approve the ordinance amendment as part of the
consent agenda.
2. Remove this item from the Consent Agenda for discussion or to provide
staff with additional direction.
RECOMMENDED
MOTION:
Alternative 1.
Reviewed By:
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY OF PRIOR LAKE
ORDINANCE NO. 107-XX
AN ORDINANCE AMENDING SECTION 110 OF PRIOR LAKE CITY CODE
RELATING TO THE DISPOSAL OF PERSONAL PROPERTY
The City Council of the City of Prior Lake hereby ordains:
SECTION 110 is hereby amended as follows:
110.300:
110.400:
110.401
110.402
110.403
110.404
DISPOSITION OF REAL PROPERTY: No publicly owned interest in real property within
the City shall be acquired or disposed of until after the Planning Commission has
reviewed the proposed disposal and reported in writing to the City Council its findings that
the proposed disposal is consistent with the Comprehensive Plan.
DISPOSITION OF PERSONAL PROPERTY:
Disposition 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.
Surplus Propertv. When City equipment, furniture, computers, vehicles or other personal
property has been replaced, is no longer needed, or is no longer in working condition and
repair is not cost-effective, the City Council may declare the personal property to be
surplus.
Method of Disposition of Surplus Personal Propertv. Surplus personal property can be
disposed of using the following methods: (1) public auction, (2) direct sale to the public,
(3) donation to a non-profit organization or other govemmental unit; (4) in the case of
damaged personal property or personal property which has no significant value, the
property may be recycled or disposed of as refuse, or (5) disposed of as a "trade-in" to
offset the cost of replacement equipment. The City Manager shall determine the
appropriate method of disposition of surplus personal property.
Disposition of Surplus Personal Propertv bv Direct Sale to the Public.
If the value of the surplus personal property is estimated to be equal to or less than the
amount set forth in Minnesota Statutes, section 471.345, subdivision 5, the surplus
personal property may be sold in the open market by the City Manager, but so far as
practicable, said disposition shall be based on two (2) or more bids which shall be kept on
file one year from date of receipt, or offered in an equal manner to the general public
through the conduct of a sale, or an auction consistent with Section 110.305 herein,
If the value of the surplus personal property is estimated to be within the range set forth in
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Phone 952.447.9800 / Fax 952.447.4245
Minnesota Statutes, section 471.345, subdivision 4, the City Manager may authorize
either the receipt of sealed competitive bids or directly negotiate by obtaining at least two
(2) bids without advertising or otherwise complying with the requirements of competitive
bidding. The City Manager may establish the time for receipt of the sealed bids or such
other requirements as he deems appropriate. After review of the bids and any other
comments or information he may require, the City Manager shall make a recommendation
to the City Council, The City Council shall then either approve or disapprove the sale of
the personal property or, if the sealed bid procedure was not used, refer the matter back
to the City Manager for additional solicitation. All bids obtained shall be kept on file for a
period of at least one year after receipt thereof.
If the value of the surplus personal property is estimated to exceed the amount set forth in
Minnesota Statutes, section 471.345, subdivision 3, the City Manager shall require sealed
bids to be solicited by public notice in the manner and subject to the requirements of
competitive bidding for the City.
110.405
Notice Reauired. If the property is to be sold, either by auction or direct sale to the public,
an advertisement must be placed in the official newspaper of the City. The notice shall be
published for two (2) consecutive weeks in the official newspaper and at least five (5)
calendar days must intervene between the date of the last publication and the date of
either the (1) conduct of the sale or auction, or (2) deadline for acceptance of sealed bids.
This notice shall contain a description of the property and the terms and conditions of
sale.
110.500:
RESTRICTIONS ON SALE To CITY EMPLOYEES: No real or personal property shall be
sold to any officer or employee of the City unless the sale is open and public. City
employees are not permitted to preview the property before the sale, nor are City
employees permitted to enter the sale location any earlier than the general public.
This ordinance shall become effective upon passage and publication,
Passed by the City Council of the City of Prior lake this 16th day of April 2007.
ATTEST:
City Manager
Mayor
SUBSECTIONS:
110.100:
110.200:
110.300:
110.400:
110.500:
110.600:
110.700:
Administrative
SECTION 110
DISPOSITION OF PROPERTIES
(City and City-Held)
PURPOSE
DEFINITIONS
DISPOSITION OF REAL PROPERTY
DISPOSITION OF PERSONAL PROPERTY
RESTRICTIONS ON SALE TO CITY EMPLOYEES
ApPLICATION AND EXCEPTION OF PROVISIONS
DISPOSITION OF UNCLAIMED PROPERTY HELD BY CITY
110.100:
110.200:
110.300:
PURPOSE: The purpose of this Section is to establish a means whereby the City
may dispose of real property or personal property.
DEFINITIONS:
Real Property: Land and its permanently affixed buildings or other structures,
together with its improvements and its natural assets, such as minerals, crops,
waters and with the inclusion of corporal or incorporeal rights that follow ownership
of the land and with the interests in such rights.
Personal Property: All property that is not real property, and other than the
property that has come into the hands of the Police Department through
impoundment.
Dispose Of. To sell, alienate, to furnish with, bargain away or otherwise conveyor
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.
DISPOSITION OF REAL PROPERTY: Mer the a9o~ion of the City's
Comprehensi'/8 Plan or any amendment thereof, No publicly owned interest in real
property within the City shall be acquired or disposed of until after the Planning
Commission has reviewed the proposed disposal and reported in writing to the City
Council its findings as to oompliance of that the proposed disposal is consistent with
the Comprehensive Plan.
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Administrative
110.301 Process for ADDroval: The City Manager shall be responsible for preparation and
processing for approval any real property intended for disposal. At the time of
preparing to dispose of such property, the City Manager shall first secure comments
and recommendations from affected departments. However, this procedure shall
not be applicable when real property is used as a trade-in on the purchase by the
City of real property.
110.302 Notice of Bids: The City Manager shall prepare a notice inviting sealed bids, to be
published for two (2) consecutive weeks in the official newspaper and at least five
(5) calendar days must intervene between the date of the last publication and the
time for filing such sealed bids or proposals. This notice shall contain a description
of the property and the terms and conditions of sale,
110,303 Form of Bids:
(1) All bids shall be filed on forms fumished by the City Manager or his representative,
After receipt of the bids, the City Manager or his representative shall present a
listing of the bids to the City Council for acceptance. The highest bidder shall be
awarded the contract unless otherwise provided in the notice of bids,
(2) In the event the City Council rejects all bids as referred to in the notice of bids, it
may then authorize the City Manager to list the property for disposition with one or
more realtors or it may authorize the City Manager to negotiate the disposition in a
manner that he may deem appropriate. All final dispositions of real property shall
be by Council approval.
110.304 Filina of Bond: The City Manager may require that any person who files a bid must
also furnish a bond commonly referred to as a bidder's bond, or a cash deposit in
the amount of not less than five percent (5%) of his bid.
110.305 Auction Sales: In the event that it is determined by the City Manager that sealed
bids should not in the first instance be incorporated for the disposition of certain real
property, then the proposed disposition must be submitted to the City Council for
approval of a public auction sale. All such public auctions shall comply with the
same procedure in that the City Manager shall be responsible for preparing a notice
to the official newspaper for at least two (2) consecutive weeks which must be at
least five (5) days before the actual date of the sale. Any such notice shall describe
the location of the auction sale and a description of the real propertyies to be sold,
At the time of the public auction, the City shall be responsible for providing the
services of an auctioneer or other personnelal necessary to carry out the public
auction. The City Manager, upon completion of the public auction, shall prepare a
record of all transactions and file such record with the City Clerk.
110,306 Books and Accounts: The City Manager shall be responsible for maintaining a
record of each sale and the disposition of money received,
110.307 Through action and approval of the City Council, the City may dispose of real
property in its possession without following the procedures contained in subsections
110.302, 110,303 and 110.305, when such real property is intended to be conveyed
to another governmental subdivision, public corporation, the State, an agency of the
City of Prior Lake
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110.308
110.400:
110.401
110,402
110.403
1110.404-
110.403
Administrative
State, the Federal government, or an agency of the Federal Government. In such
cases, the City may sell or otherwise convey its land for a nominal consideration,
without consideration or such consideration as may be agreed upon.
Through action and approval of the City Council, the City may dispose of real
property owned by the City in fee simple and not restricted by the grant, without
following the procedures contained in subsections 110.302 through 110.305, when
such real property is conveyed to encourage and promote industry and provide
employment for citizens by conveying said property to any person (individual(s),
partnership, corporate or other entity) for a nominal consideration or for such
consideration as may be agreed upon.
DISPOSITION OF PERSONAL PROPERTY:
All salesDisposition -of personal property owned by the City supplies, matorials or
equipment, or the rental thereof, 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.
Surplus Property. When City equipment, furniture, computers, vehicles or other
personal property has been replaced, is no longer needed, or is no longer in
working condition and repair is not cost-effective, the City Council may declare the
personal property to be surplus.
Method of Disposition of Surplus Personal Property, Surplus personal property can
be disposed of using the following methods: (1) public auction, (2) direct sale to the
public, (3) donation to a non-profit organization or other governmental unit; (4) in the
case of damaged personal property or personal property which has no significant
value, the property may be recycled or disposed of as refuse; or (5) disposed of as
a "trade-in" to offset the cost of replacement equipment. The City Manager shall
determine the appropriate method of disposition of surplus personal property.
Disposition of Surplus Personal Property by Direct Sale to the Public.
If the amount value of the contract surplus personal property is estimated to be
equal to or less than the amount set forth in Minnesota Statutes, section 471.345,
subdivision 5, the contract surplus personal property may be made-sold in the open
market by the City Manager, but so far as practicable, said contract disposition shall
be based on two (2) or more quotations bids which shall be kept on file one year
from date of receipt, or offered in an equal manner to the general public through the
conduct of a sale, or an auction consistent with Section 110.305 herein.~
If the amount value of the contract surplus personal property is estimated to be
within the range set forth in Minnesota Statutes, section 471.345, subdivision 4, the
City Manager may authorize either the receipt of sealed competitive bids or directly
negotiate by obtaining at least two (2) quotations bids without advertising or
otherwise complying with the requirements of competitive bidding. The City
Manager may establish the time for receipt of the sealed bids or quotations or such
other requirements as he deems appropriate, After review of the bids or quotations
City of Prior Lake
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I 110.404
110.405
110.500:
110.600:
110.601
110.602
110.700:
Administrative
and any other comments or information he may require, the City Manager shall
make a recommendation to the City Council. The City Council shall then either
approve or disapprove the sale of the personal property or, if the sealed bid
procedure was not used, refer the matter back to the City Manager for the taking of
additional quotationssolicitation. All quotations bids obtained shall be kept on file for
a period of at least one year after receipt thereof.
If the amount value of the contract surplus personal property is estimated to exceed
the amount set forth in Minnesota Statutes, section 471.345, subdivision 3, the City
Manager shall require sealed bids to be solicited by public notice in the manner and
subject to the requirements of competitive bidding for the City,
Notice Required. If the property is to be sold, either by auction or direct sale to the
public, an advertisement must be placed in the official newspaper of the City. The
notice shall be published for two (2) consecutive weeks in the official newspaper
and at least five (5) calendar days must intervene between the date of the last
publication and the date of either the (1) conduct of the sale or auction, or (2)
deadline for acceptance of sealed bids. This notice shall contain a description of the
property and the terms and conditions of sale.
RESTRICTIONS ON SALE To CITY EMPLOYEES: No real or personal property
shall be sold to any officer or employee of the City unless the sale is open and,
public and competitive, City employees are not permitted to preview the property
before the sale, nor are City employees permitted to enter the sale location any
earlier than the general public.
ApPLICATION AND EXCEPTION OF PROVISIONS:
Aoolication: The procedure set forth in this Section shall be applicable to any
manner or means of transfer, change of ownership or conveyance of property
belonging to the City unless otherwise provided by the City Council. The City may,
under some circumstances, dispose of property by ordinance not in accordance
with this procedure with a vote of not less than four (4) members of the Council.
Exceotion: The provisions of this Section shall not be applicable to perishable
property or dated property such as drugs or property that has been received by the
City in excess of quantities needed, when such property is disposed of in a manner
approved by the City Manager. (Ord, 76-5, 4-19-76)
DISPOSITION OF UNCLAIMED PROPERTY HELD By THE CITY:
Sale Of Unclaimed Prooertv. 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 and such property remains unclaimed by the
owner thereof for a period of three (3) months or more, the City may dispose of
such property by the Chief of Police conducting a public auction or sale, following
City of Prior Lake
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Administrative
the notice of such sale.,Ssuch notice of sale shall be published in the official
newspaper and posted at least ten (10) days in advance of such sale on the bulletin
board located at the City Hall.
If any such property is perishable or subject to decay by keeping, it may be sold, if
not claimed by the owner within ten (10) days, upon five (5) days! posted notice"
and if any such property isbe 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. All unclaimed property which is not sold when offered for sale as provided in
this Section 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 disposition has
been given in the manner provided by this Section for saleable unclaimed property.
City of Prior Lake
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