Chapter 3.12
SALE OF SURPLUS CITY PROPERTY

Sections:

3.12.010    Disposition of surplus real property.

3.12.020    Disposition of surplus personal property.

3.12.010 Disposition of surplus real property.

A. Real Property – Authority. Whenever the City Council finds and determines that certain City-owned real property, or any portion, right, title or interest therein, is no longer needed or useful for the uses and purposes of the City or its people, the City Council may declare such property, or any right, title and interest therein, to be surplus to the uses and needs of the City and to authorize the sale, transfer, lease, or other disposition of such property, or any right, title and interest therein, in accordance with the procedures set forth in this chapter. In making such disposition, the City Council may authorize the sale, transfer, lease or other disposition of timber, mineral or other resources on any real property owned by the City, separate and apart from the land and improvements thereon, or may reserve such timber, mineral or other rights to resources to such property.

B. Procedure for Disposition.

1. Declaration of Surplus. The City Manager may recommend that the City Council declare certain real property, or any right, title or interest therein, surplus to the uses and needs of the City. In making such recommendation, the City Manager shall inform the City Council of the estimated value of the subject real property, or the estimated value of any right, title or interest to be declared surplus. The estimated market value may be determined by appraisal or market value assessment, as determined appropriate by the City Manager. If the estimated value of the property is greater than $50,000, the City Council shall schedule and hold a public hearing to determine and consider such proposed action to surplus such property. After receiving the recommendation from the City Manager, and after any applicable public hearing, the City Council may declare any City-owned real property, or any right, title or interest therein, surplus to the uses and needs of the City. The City Council shall fix a minimum price at which such property may be sold, leased, exchanged or otherwise disposed.

2. Disposition of Surplus Real Property.

a. Competitive Bidding Required. In the event any parcel of real property, or any right, title or interest therein, is declared surplus, and the minimum price fixed by the City Council is greater than $5,000, sale or other disposition shall be accomplished through publication of public notice soliciting sealed bids. Advertising soliciting such sealed bids shall be in the official City newspaper and any other publication deemed appropriate by the City Manager, and shall occur at least 13 days prior to the scheduled date of bid opening. Additionally, a description of the subject property shall be posted with a copy of the notice soliciting sealed bids. The advertising and notice shall describe the subject property, or interest therein, to be sold or disposed, and shall state the date and time by which bids must be received, and the date, time and location of bid opening. The bids shall be opened in public at the time and place stated in the bid solicitation. The City may reject any or all bids, or the bid for any one or more of the parcels or interests described in the solicitation for bids. All sales shall be in cash or certified bank check. Upon payment received and confirmed, the City Manager shall cause to be prepared and delivered to the purchaser a deed or other necessary instrument to accomplish the disposition.

b. Exceptions. The requirements of subsection (B)(2)(a) of this section do not apply to the following:

i. Value of Property Less than $5,000. If the estimated value of any parcel of surplus real property, or right, title or interest therein to be disposed, is less than $5,000, the City Manager may solicit sealed bids as set forth in subsection (B)(2)(a) of this section, or may issue invitation to negotiate to the public or other interested party, or use any means appropriate to accomplish the sale or other disposition in accordance with the minimum price fixed by the City Council.

ii. Intergovernmental Transfer. In the event the subject property is to be sold, transferred, exchanged, leased or otherwise disposed to the federal or State government, or any municipality or any political subdivision thereof, the City Manager may negotiate the terms and conditions of such sale, transfer, exchange, lease or other disposition, and accomplish such disposition. If the negotiated disposition is less than any minimum fixed price determined by the City Council, the City Council shall approve such disposition.

iii. Negotiation with Adjacent Landowner. In the event the subject property is adjacent to or is determined by the City Manager to be primarily associated with the needs and uses of the adjacent private property or properties, the City Manager is authorized to enter into negotiations with such private property owner or owners for the sale or other appropriate disposition of the subject property. If such negotiations do not result in any agreed sale or disposition, the City Manager, when he determines appropriate, may invoke the sealed bid procedures in subsection (B)(2)(a) above or other appropriate means of disposition.

iv. Emergency. Surplus real property, or any right, title or interest therein, may be disposed of by any means deemed appropriate when the City Council, setting forth the facts, has declared an emergency to exist. [Ord. 2127 § 1, 2006.]

3.12.020 Disposition of surplus personal property.

A. Personal Property – Authority – Disposition. Whenever the City Manager finds and determines that it is in the best interests of the City and the people thereof that certain tangible personal property, including supplies, materials and equipment, is not needed for public use or administration of the City, he shall be authorized to determine the value thereof, declare such property surplus to the uses and needs of the City, and dispose of such property in accordance with the procedures set forth below.

B. Procedures for Disposition – Value of Property. The following procedures shall apply:

1. Property Value More Than $2,500. Whenever the City Manager determines the value of any item of surplus personal property to be more than $2,500, he shall be authorized to sell, lease, transfer, exchange, use as trade-in for acquisition of like property, or otherwise dispose of such property, with the consent of the City Council, and subject to the procedures for competitive bidding set forth in subsection (C) of this section. If the value of the item of property, as determined by the City Manager, exceeds $50,000, the City Council shall hold a public hearing on the proposed disposition prior to giving consent, and may fix a minimum price at which such property may be sold, leased, exchanged or otherwise disposed.

2. Property Value $2,500 or Less. Whenever the City Manager determines the value of any item of subject personal property to be $2,500 or less, he shall be authorized to sell, lease, exchange, use as trade-in for acquisition of like property, without prior consent of the City Council, upon terms deemed by the City Manager to be equitable to the City.

C. Disposition of Personal Property – Competitive Bidding – Exceptions.

a. Competitive Bidding. Unless otherwise provided below, for any item of surplus City personal property valued at more than $2,500, the City Manager shall publish notice soliciting sealed bids. An advertisement soliciting such sealed bids shall be in the official City newspaper and any other publication deemed appropriate by the City Manager, and shall be published at least 13 days prior to the scheduled date of bid opening. The advertising and any notice soliciting bids shall describe the subject property, and shall state the date and time by which bids must be received, and the date, time and location of bid opening. The notice shall also provide for viewing of the subject property during normal business hours of the City. The bids shall be opened in public at the time and place stated in the bid solicitation. The City may reject any or all bids, or the bid for any one or more articles of property. All sales shall be in cash or certified bank check. Upon payment received and confirmed, the City Manager shall make such property available for possession by the successful bidder, and shall execute any necessary or appropriate bill of sale or other documentation to accomplish such sale. All sales shall be for the subject property “as is” without warranty of any kind, including without limitation, disclaimer of any warranty of fitness for intended purpose or merchantability.

b. Auction. In lieu of the competitive bidding set forth above, the City Manager may authorize and deliver such personal property for auction through any qualified auctioneer, and may authorize compensation for such auctioneer out of any proceeds of sale through auction.

c. Exceptions. No competitive bidding or auction shall be required in the following:

1. Value of Property $2,500 or Less. If any item of subject property is valued by the City Manager at $2,500 or less, the City Manager is authorized to sell or otherwise dispose of the property upon terms and in any manner deemed by the City Manager to be equitable to the City; provided, however, that the City Manager shall not sell, trade or dispose of any such property, directly or indirectly, to any employee or official of the City or any of their immediate family members.

2. Intergovernmental Transfer. In the event the subject property is to be sold, transferred, exchanged, leased or otherwise disposed to the federal or state government, or any municipality or any political subdivision thereof, the City Manager may negotiate the terms and conditions of such sale, transfer, exchange, lease or other disposition, and accomplish such disposition. If the negotiated disposition is less than any minimum fixed price set by the City Council, the City Council shall approve such disposition.

3. Trade-In or Exchange. No competitive bidding or auction is required when subject property is to be traded in upon the purchase of, or exchanged for, like property.

4. Emergency. Surplus personal property, or any right, title or interest therein, may be disposed of by any means deemed appropriate when the City Council, setting forth the facts, has declared an emergency to exist. [Ord. 2127 § 1, 2006.]