Chapter 3.20
PURCHASING

Sections:

3.20.010    –

3.20.050    Repealed.

3.20.060    Disposal of personal property.

3.20.070    Purchase of real property.

3.20.080    Sale or disposition of real property.

3.20.090    Leasing of real property.

3.20.100    –

3.20.150    Repealed.

3.20.010 General.

Repealed by Ord. 644. (Ord. 246 § 3, 1982)

3.20.020 Definitions.

Repealed by Ord. 644. (Ord. 511 § 3, 1997; Ord. 246 § 3, 1982)

3.20.030 Time limit.

Repealed by Ord. 644. (Ord. 246 § 3, 1982)

3.20.040 Purchase of personal property.

Repealed by Ord. 644. (Ord. 512 § 3, 1997; Ord. 427 § 3, 1991; Ord. 246 § 3, 1982)

3.20.050 Purchase of personal property – Bidding procedures.

Repealed by Ord. 644. (Ord. 524 § 3, 1997; Ord. 512 § 4, 1997; Ord. 427 § 4, 1991; Ord. 361 § 3, 1987; Ord. 307 § 3, 1985; Ord. 252 § 3, 1982; Ord. 246 § 3, 1982)

3.20.060 Disposal of personal property.

A. Each department shall report on a regular basis to the city manager any items of personal property which are obsolete, surplus, or otherwise do not hold current value to the functions of the department.

B. The city manager shall dispose of personal property valued at less than $10,000 upon the notice and terms the manager considers reasonable. The manager shall take into consideration the value of the article, reason for disposal, and general preference for disposal by competitive bid.

C. The city manager shall obtain council approval of all items valued at more than $10,000 prior to disposal of those items.

D. The city manager, city clerk, city attorney, department heads, and council members are prohibited from purchasing personal property from the city. All other city employees may purchase personal property in accordance with the Charter, Palmer Municipal Code and personnel regulations. (Ord. 08-015 § 3, 2008; Ord. 523 § 3, 1997; Ord. 246 § 3, 1982)

3.20.070 Purchase of real property.

A. Authority to Acquire Property. The city may acquire, own and hold real property within or outside the city boundaries by purchase, gift, devise, grant, dedication, exchange, redemption, purchase of equity of redemption, operation of law, tax or lien foreclosure, adverse possession, condemnation or declaration of taking, annexation, or by any other lawful means or conveyances.

B. Definition of Real Property. As used in this chapter, the term “real property” includes any estate in land, easement, right-of-way, lease, permit, license, franchise, future interest, building, fixture or any other right, title, or interest in land or a building.

C. Form of Acquisition. The city may acquire, own and hold real property by warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or any other lawful method or mode of conveyance or grant.

1. Real property shall be held in the name of “The City of Palmer.”

2. Any instrument requiring execution by the city shall be signed by the mayor and attested by the city clerk. The form of any conveyance shall be approved by the city attorney.

D. Form of Ownership. The city may acquire and hold each real property as sole owner or as tenant in common or other lawful tenancy, with any other person or governmental body for any public purpose. The city may hold real property in trust for any public purpose.

E. Rights and Powers. The city shall have and may exercise all rights and powers in the acquisition, ownership and holding of real property as if the city were a private person; provided, however, the city shall not waive any immunities of a municipality regarding the acquisition, ownership and holding of real property unless specifically provided for by resolution concerning the specific property.

F. Dedication by Plat. The city may not acquire any real property by means of a dedication by plat unless the dedication of the real property is accepted in writing and signed by the mayor.

G. Procedure.

1. The city may acquire real property and the council shall approve by resolution the acquisition of real property to be purchased in whole or in part for a cash consideration or exchange of real property.

2. No approval is necessary to acquire any easement, right-of-way, permit, license, or other interest in real property if necessary for a utility or public improvement where the utility or public improvement has been authorized and approved by the council.

3. Prior to approval, the city manager shall furnish the council with an abstract of title, or preliminary commitment for title insurance, the value assessed by the borough tax assessor or other appraisal of the real property, and a review of any problems in acquisition, but the failure to furnish the council any such material shall not affect the validity of any acquisition or purchase of real property by the city.

4. Unless otherwise provided by the council, the city shall purchase marketable title in the real property.

H. Purchase by Agreement. The council may approve and authorize the purchase of real property by contract of sale, deed of trust, or mortgage.

I. Industrial Sites. The city may acquire, own and hold real property, either inside or outside the city boundaries, for sites available for new industries which will benefit the city.

J. Federal and State Aid. Legislative assent to federal or state aid for the city, including aid given to the city through a department or agency of the federal or state government, is given. The city may apply for, contract, and do all things necessary to cooperate with the United States government and the state of Alaska for the acquisition, holding, improvement, or development of real property within and outside the city boundaries. (Ord. 11-004 § 3, 2011; Ord. 246 § 3, 1982)

3.20.080 Sale or disposition of real property.

A. Authority to Sell or Dispose of Property. The city may sell, convey, exchange, transfer, donate, dedicate, direct or assign to use, or otherwise dispose of city-owned real property by any lawful means or conveyances.

B. Form of Sale or Disposition. The city may sell or dispose of real property by warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or any other lawful method or mode of conveyance or grant. Any instrument requiring execution by the city shall be signed by the mayor and attested by the city clerk. The form of any instrument shall be approved by the city attorney.

C. Rights and Powers. The city shall have and may exercise all rights and powers in the sale and disposal of real property as if the city were a private person; provided, however, the city shall not waive any immunities of a municipality regarding the sale or disposition of real property unless specifically provided for by resolution concerning the specific sale or disposition. The city may sell or dispose of any real property, including property acquired or held for or devoted to a public use, when in the judgment of the city council it is no longer required for municipal purposes.

D. Public and Charitable Conveyances. The council may sell, donate or exchange with the United States, the state, any political subdivision, or a nonprofit organization, city-owned real property without a public sale and for less than the fair market value, whenever in the judgment of the city council it is advantageous to the city to make the conveyance.

E. Property Exchanges. The council may approve, after public notice, the conveyance and exchange of a parcel of city property for an equivalent parcel of property owned by another person, subject to such conditions as the council may impose on the exchange, whenever in the judgment of the city council it is advantageous to the city to make the property exchange.

F. Grants for Federal and State Programs. The council may grant or devote real property no longer held for public purpose to the United States, the state of Alaska, a local subdivision, or an agency of any of these governments, for a consideration agreed upon between the city and the grantee without a public sale if the grant or devotion is advantageous to the city. Any approval of a federal or state program providing for the participation or cooperation of the city by grant or devotion of the real property is a sale of that real property for the consideration stated in the program.

G. Industrial Sites. Notwithstanding any other subsections of this section, the city may sell, lease or dispose of sites acquired for new industries benefiting the city upon the terms and conditions as the city council considers advantageous to the civic welfare of the city, to a person who agrees to install, maintain and operate a beneficial new industry.

H. Change of Use. Real property acquired or purchased for one city purpose may be appropriated, transferred, assigned, or directed without public sale to another city purpose, whenever the city council determines that the purpose for which the property was acquired or purchased no longer exists, or the property is no longer used or useful for the purpose. No formal conveyance is necessary to dispose of the real property to another city purpose, and the disposition may be made to another purpose with or without legal consideration for the disposition. The city may sell, convey or otherwise dispose of real property no longer used or useful in the operation of a city-owned utility. Real property no longer needed for the purpose for which the real property was acquired or purchased, or utility property no longer used or useful in the operation of a city-owned utility, is no longer property owned, held for or devoted to a public use, and may be sold or disposed of as provided in this chapter if the council determines the real property is not useful to the city for any other purpose.

I. Conveyance of Public Improvement Property Interests. The city council may at any time, without public sale, convey, quitclaim, release, cancel, or otherwise relinquish any real property easement, right-of-way, permit, or license the city may have or hold for the purpose of installing, constructing, or maintaining a public improvement, whenever the interest is no longer used or useful for that purpose.

J. Real Property as Security. The council may pledge, mortgage or otherwise secure city real property for the payment of city bonded or other indebtedness when required, as authorized by law.

K. Public Sale. Unless otherwise provided in this chapter, real property no longer used or useful for a public use or purpose shall be sold to the highest responsible bidder at a public sale. Public sale shall not be required where the real property of the city is subject to any term or condition restricting or limiting the ability of the city to obtain the fair market value of the property.

L. Notice. Unless otherwise provided in this chapter, notice of a proposed public sale of real property shall be published not less than two weeks prior to bid date in a newspaper of general circulation in the city. The notice shall contain a description of the real property to be sold and the time, date, place and any terms or limitations of the public sale.

M. Fair Market Value. Real property shall be sold for not less than the fair market value. If a public sale does not result in a bid equal to or greater than the fair market value and costs of sale, the council may sell the real property at a private sale or may conduct another public sale. In the event of an authorized private sale or another public sale, the council may approve the sale of the property at the highest price which may be obtained. “Fair market value” as used in this subsection means the price determined in terms of money at which the real property is appraised by a qualified appraiser, or the value assessed by the borough tax assessor.

N. Procedure on Public Sale. The council in the resolution authorizing the sale of real property shall set forth the terms and conditions of the public sale. The council may reserve the right to reject any and all bids received at the public sale, if the highest bid is below the fair market value and costs of sale or is not made by a responsible bidder. The resolution shall provide if the sale is for cash, or cash deposit and a purchase agreement. If the sale is for a cash deposit and a purchase agreement, the city manager shall prescribe the form of the purchase agreement. No sale or purchase agreement will be enforceable against the city unless and until the city council approves such sale or purchase agreement. The approval of any public sale by the council authorizes the city manager to take all steps and execute all instruments to complete and close the sale. The city manager shall conduct the sale, and shall give to the bidder at the auction a receipt for all moneys received by the city. A purchaser at a public sale who fails to make such other cash payments within the times required by the resolution shall forfeit any cash deposit paid to the city.

O. Appraisal. No real property shall be sold at a public sale unless the real property to be sold has been appraised by a qualified appraiser within 180 days prior to the date of the resolution authorizing the public sale.

P. Council Action. No action of the council to dispose of any city interest in real property dedicated to public use shall be final until the resolution to do so has been on file in the office of the city clerk for 30 days. Prior to any council action on the sale of real property, the city manager shall make his recommendation to the city council as to any change of use or merits of the sale or disposition of the real property.

Q. Purchase Agreement. A purchaser of real property from the city may purchase the real property by purchase agreement if provided in the resolution for the sale. Unless otherwise provided in the resolution for the sale, a purchase agreement shall provide for a deed, note and deed of trust. The purchase agreement shall be executed by the mayor, attested by the city clerk and approved as to form by the city attorney.

R. Broker. The city may employ a broker for the sale of real property and may pay the broker a commission for the sale. The employment shall be in the resolution for the sale of the real property and any contract of employment shall be first approved by the city council unless the city council authorized the city manager to execute the contract without approval.

S. Easements and Rights-of-Way. The city may reserve any easement and right-of-way to be used for public improvements and purposes before selling or disposing of city-owned real property. The city council may make such restrictions, limitations, reservations, reversions, or other covenants the council may find advantageous to the city even if the fair market value of the property is affected. The effect of these reservations may be considered in determining the fair market value of the property.

T. City Manager Regulations. The city manager may provide by regulation for the procedures and forms as to applications, surveys, appraisals, auction, bidding, form or substance of purchase agreement, or any other matter involving the sale or disposition of city property not inconsistent with and to implement the intent and purpose of this chapter. The absence of a regulation or an inconsistent resolution shall not invalidate any public sale procedure, or conveyance executed or to be executed by the city, where the requirements of this chapter have been otherwise satisfied. (Ord. 544 § 3, 1999; Ord. 246 § 3, 1982)

3.20.090 Leasing of real property.

A. Property Available for Leasing. All real property which the city owns, or in which the city has right, title and interest, or to which the city may become entitled, may be leased as provided in this chapter. The term “property” as used in this chapter shall include these interests in real property.

B. Term. No lease shall be for a term of more than 20 years unless the council shall determine from the purpose, use of the premises, and nature of improvements which may be placed thereon that a longer term would benefit the city and would be consistent with city planning. A lease shall first be approved by the city council. Any renewal period or option to renew the lease period shall be included in the term of the lease.

C. Appraisals.

1. Property in General. No property shall be leased or a renewal lease issued unless the property to be leased has been appraised by the city within one year prior to the date contemplated for the commencement of the lease, unless the council, in its discretion, determines that an appraisal is unnecessary.

2. Airport Properties. Airport properties shall be leased in accordance with Federal Aviation Administration requirements associated with aeronautical and nonaeronautical uses and may be appraised by the city when it is determined that it is in the best interests of the airport to do so.

D. Lease Auction. Unless otherwise provided in this chapter, property shall be leased to the highest bidder at a lease auction.

E. Notice. Unless otherwise provided in this chapter, notice of a proposed lease of property shall be published not less than two weeks prior to bid opening date in a newspaper of general circulation in the city. The notice shall set forth a description of the property with interest therein to be leased, and the time, place, and any terms or limitations of the lease auction. Notice shall not be required if the term of the lease is two years or less. Where the lease contains a provision permitting the renewal, extension or modification of the lease, notice is not required for the renewal, the exercise of the option or the modification. The council may waive the requirement of public notice and auction for a lease of property on which substantial improvements are to be placed, or have been placed, when the council, in its discretion, determines from the circumstances of the transaction, the size, location, nature, rentals, terms, proposed use and purpose of the property that a negotiated lease of the property would not substantially affect the fair rental value of the property.

F. Fair Rental Value. Except as provided in subsection (C)(2) of this section, property shall be leased for a fair rental value. “Fair rental value” is the rental computed from the appraised fair rental value of the property and shall mean the highest price described in terms of money for which the property would rent, if exposed for rent for a reasonable time in the open market, for the use permitted by the city. With approval by the city council, the lease of property may be made for a rental less than the fair rental value to a state or federal agency, state political subdivision or nonprofit organization as may be determined by the city manager to be fair and proper, considering the public interest and the nature of the public use or function of the leased premises. Fair rental value shall not be required where the property interest of the city is subject to any term or condition restricting or limiting the ability of the city to obtain the fair rental value of the property.

G. Adjustment of Rental. A lease having a term of more than two years shall provide for adjustment of rentals at specified intervals during the term of lease, and the intervals shall be every five years. This section shall be incorporated in each lease by reference and enforceable as if fully set forth therein.

H. Renewal of Lease. The renewal or extension of the lease shall be considered as a new lease unless renewal or extension is provided for in the lease.

I. Improvements and Chattels. The lease shall provide the terms, conditions and limitations of the removal or reversion of improvements or chattels upon the lease premises after termination of the lease. The retiring lessee may, with the consent of the city manager, sell the improvements to the succeeding lessee. If the improvements or chattels are not removed within the time set forth in the lease, the improvements and chattels may, upon reasonable notice to the lessee, be sold at public sale to be provided by regulations of the city manager. Proceeds of the sale shall be first applied to the city’s costs and expenses of maintaining, removing and selling the improvements and chattels and to rentals for the period of nonremoval. The city may bid at the sale and may be credited with the value of the city’s costs, expenses and rentals due resulting from the nonremoval of the improvements or chattels. The city shall have all other rights, both legal and equitable, any other purchaser would have or acquire by reason of the sale. In addition, should the lease so provide, if the improvements or chattels are not removed within the time set forth in the lease, the improvements and chattels may become the property of the city.

J. Inspection. The lessee shall allow an authorized representative of the city to enter the leased premises for inspection at any reasonable time.

K. Easements and Rights-of-Way. The city expressly reserves the right, without compensation or adjustment in rentals to the lessee, to grant surface, underground or overhead utility easements or rights-of-way in or upon the leased property, if the exercise of the right will not unreasonably interfere with lessee’s improvements placed upon the property and with the lessee’s use of the property.

L. Condemnation. Upon condemnation of the premises or any part thereof by the state, borough, or federal government or agency thereof, including inverse condemnation, the lease shall terminate without any liability to the city. The city shall not be liable in damages or pay any compensation to the lessee as a result of the condemnation terminating the lease.

M. City Manager Regulations. The city manager may provide by regulations for the procedures and form as to applications, surveys, appraisals, auction, bidding, form and substance of lease, termination, forfeiture or any other matter involving the leasing of city property to implement the intent and purpose of this chapter. The absence of a regulation shall not invalidate any auction procedure or lease executed or to be executed by the city, where the requirements of the chapter have been otherwise satisfied.

N. Approval of City Council. The city council shall approve all leases. All leases shall be approved as to form by the city attorney prior to execution. (Ord. 12-008 § 3, 2012; Ord. 246 § 3, 1982)

3.20.100 Bidding procedures – Public works projects and buildings.

Repealed by Ord. 644. (Ord. 550 § 3, 1999; Ord. 525 § 4(2), 1997; Ord. 361 §§ 4, 5, 1987; Ord. 345 § 3, 1986; Ord. 311 § 3, 1985; Ord. 267 § 3, 1983; Ord. 246 § 3, 1982)

3.20.110 Professional services.

Repealed by Ord. 644. (Ord. 246 § 3, 1982)

3.20.120 Emergency procedure.

Repealed by Ord. 644. (Ord. 378 § 3, 1987; Ord. 246 § 3, 1982)

3.20.130 Conflict of interest.

Repealed by Ord. 644. (Ord. 246 § 3, 1982)

3.20.140 Joint purchasing.

Repealed by Ord. 644. (Ord. 604 § 3, 2003; Ord. 412 § 3, 1990; Ord. 382 § 3, 1988; Ord. 307 § 4, 1985)

3.20.150 Misrepresentations and fraudulent claims.

Repealed by Ord. 644. (Ord. 604 § 4, 2003)