Chapter 3.10
PURCHASE AND SALE OF CITY-OWNED PROPERTY

Sections:

3.10.010    Acquisition of real property.

3.10.020    Sale of real property – Surplus property list.

3.10.030    Supplemental regulations.

3.10.010 Acquisition of real property.

(1) Interests in real property shall be purchased or otherwise acquired for Riverton City by or under the direction of the mayor. The mayor may designate a suitable city employee as the real property procurement officer, who shall be a person with demonstrated ability in public or comparable private procurement, and who shall serve as the city’s officer for the purchase of real property. If appointed as provided herein, the real property procurement officer shall have the authority to review all actions taken by the city with respect to the procurement of operational supplies and services, and to determine appropriate procurement actions. In addition, the real property procurement officer shall have the following duties:

(a) Procure or supervise the procurement of all real property needed by the city or any of its departments or divisions for the benefit of a public purpose under Utah law; and

(b) Propose rules for adoption by the mayor to govern the management and operation of the city’s purchasing function for real property, except that rules submitted to the mayor for adoption shall be reviewed and approved by the city engineer, the city attorney, and the city purchasing department prior to adoption by the mayor.

(2) Approval or ratification of the city council shall be required for all acquisitions of interests in real property wherein the purchase price of the interest acquired exceeds $25,000 and the said interest is not identified in a budget line item. Subject to the other requirements of this section, all other acquisitions of interests in real property may be authorized by the mayor without council action.

(3) No agreement to purchase or otherwise acquire an interest in real property shall take effect until the finance director, or the finance director’s designee, has certified:

(a) That the purchase or acquisition is authorized in the city budget; and

(b) To the probable existence of sufficient funds to pay for the interest in real property according to the proposed contract terms. [Ord. 08-22 § 1 (Exh. A). Code 1997 § 8-1-010.]

3.10.020 Sale of real property – Surplus property list.

(1) There is hereby created a list to be known as the surplus real property list, the same to be maintained by the mayor or designee, upon which are specifically or categorically described items of real property which the city council, by resolution, has approved for sale, trade, encumbrance or other action divesting Riverton City of an ownership interest.

(2) Before a significant parcel of real property is placed on the surplus property list, reasonable notice of the proposed disposition shall be provided at least 14 days in advance to allow an opportunity for public comment on the proposed disposition. For purposes of this subsection:

(a) “Reasonable notice” means:

(i) Posting notice of a proposed disposition in at least three public places within the city; and

(ii) Publishing the notice in the newspaper of general circulation in the city.

(b) “Significant parcel of real property” means a parcel of real property owned by the city with a reasonable value equal to or greater than $25,000.

(3) Surplus real property not sold by the end of each fiscal year shall be removed from the surplus property list, unless said removed property receives new city council approval, by resolution.

(4) Unless otherwise provided by resolution, property placed upon the surplus property list shall be approved by the city council for sale, and may be sold by public auction conducted in a commercially reasonable manner, with the time and place of auctions being as directed by the mayor. All property with a value of $10,000 or less is excluded from provisions of this section and may be disposed of at the discretion of the mayor.

(5) Unless otherwise provided by resolution, real property shall be sold for:

(a) Not less than the purchase price originally paid by the city; and

(b) Not less than 90 percent of fair market value, with fair market value being determined by:

(i) Not less than one certified real estate appraiser if a good faith estimate as to the fair market value of the property is equal to or greater than $10,000; or

(ii) Not less than two certified real estate appraisers, if the fair market value is determined to be $200,000 or more.

(c) Subsections (5)(a) and (b) of this section shall not apply to exempt properties with a value of $10,000 or less. The general terms of sale, which shall not be inconsistent with a cash sale at fair market value as provided above, shall be within the discretion of the mayor.

(6) Property placed upon the surplus property list for purposes of sale, trade, encumbrance or other action divesting Riverton City of an ownership interest shall be acted upon by the mayor consistent with the provisions of the resolution placing the property upon the surplus property list.

(7) Notwithstanding other provisions of this section, the mayor may without prior approval enter into written contracts to sell, trade, or take other action divesting Riverton City of an ownership interest, with respect to property which is not on the surplus property list, but such a contract shall expressly provide that it shall not be effective until approved by the city council. Such a contract shall not be effective until it has been expressly approved by a written resolution of the city council and when so approved such a contract may contain any reasonable terms or conditions not otherwise inconsistent with law.

(8) The mayor shall provide to the city council an annual report detailing all real properties sold, traded, encumbered or divested by the administration over the past year, which report shall contain:

(a) Property names and addresses;

(b) The approximate size of each property;

(c) The acquisition amount paid for each property and acquisition date;

(d) Surplus date;

(e) All appraisals and estimates, if any, or a summary of the same;

(f) The consideration received in the sale of each property;

(g) The names of buyer(s) involved in each transaction; and

(h) The date of sale. [Ord. 08-22 § 1 (Exh. A). Code 1997 § 8-1-020.]

3.10.030 Supplemental regulations.

Issues involving transactions of real property not addressed by RCC 3.10.010 and 3.10.020 or in any procedural rules adopted by the mayor shall be governed by Chapter 3.05 RCC, Procurement Ordinance. [Ord. 08-22 § 1 (Exh. A). Code 1997 § 8-1-030.]