Chapter 3.44
DISPOSITION OF REAL PROPERTY SURPLUS
Sections:
3.44.020 Guidelines for decision.
3.44.030 Surplus property declaration.
3.44.040 Procedures for disposition of city-owned real property surplus.
3.44.050 Sale to abutting owners.
3.44.060 Intergovernmental transfers.
3.44.070 Statutory exceptions.
3.44.080 Disposition of property, other than real estate, to be declared as surplus.
3.44.010 Policy.
It is the policy of the city to disposition city-owned real property that would afford the city a reasonable return from the transaction. For purposes of this chapter, “reasonable return” means sale at an amount equal to or greater than the appraised value. For purposes of this chapter, “surplus property” means real property for which the city has no current or future needs. (Ord. 15-796 § 1, 2015)
3.44.020 Guidelines for decision.
The disposition of all surplus real property under this chapter shall be done in a manner that is in the city’s best interests. Factors to consider in determining the city’s best interests include but are not limited to:
A. Possible future requirements of the city;
B. Present value of the property;
C. Likelihood of locating a buyer;
D. Intergovernmental cooperation;
E. The general welfare of the citizens of the city. (Ord. 15-796 § 1, 2015)
3.44.030 Surplus property declaration.
A. Real property owned by the city may be declared surplus by the city council after the following procedures have been completed:
1. A written report which may include any or all of the following information, as applicable, for each parcel under consideration:
a. Description of the subject parcel’s size, legal description, parcel number and its general location;
b. Recommendation as to which fund the proceeds from its sale should be credited;
c. Recommendation as to whether any special covenants or restrictions should be imposed in conjunction with sale of the subject parcel;
d. Listing services such as electric, water and sewer responsibility of grantor;
e. Listing “as-is, where-is” condition;
f. Real property must be surveyed by a certified land surveyor;
g. Must obtain an appraisal by a certified appraiser.
2. A public hearing shall be held to consider the surplus declaration of the subject parcel. Notice of said hearing shall be published in the city’s official newspaper and mailed to all property owners within 300 feet of the subject parcel not less than 10 days prior to the hearing.
B. Notification of Sale of Surplus Property. In the event the subject parcel is to be disposed of by sealed bid or by auction, the following notification procedures shall be followed:
1. A notice of the city’s intent to dispose of the subject parcel shall be conspicuously posted on the property no less than two weeks prior to the date set to commence accepting bids or the date set for the auction.
2. A similar notice shall be posted on the bulletin board at City Hall.
3. Notice shall be published in the city’s official newspaper no less than once each week in two consecutive weeks preceding acceptance of sealed bids or the public auction. All notices shall include a description of the subject parcel, the procedure by which the subject parcel is to be disposed of, any earnest money deposits which must be made and the minimum price that will be accepted.
4. The notice of sale shall particularly describe the property to be sold, designate the day, hour, place of sale, and the method of bidding. (Ord. 15-796 § 1, 2015)
3.44.040 Procedures for disposition of city-owned real property surplus.
A. Procedures. Unless authorized for special disposition process by the city council real property declared surplus may be disposed of for a reasonable return by any of the following means:
1. Sealed bid;
2. Auction; or
3. Negotiated sale.
B. Processes/Earnest Money/Time to Closing.
1. Disposition by Sealed Bid. Where a subject parcel is sold by sealed bids, any and all bids submitted must be accompanied by a bid deposit in the form of a cashier’s check payable to the city of Asotin in the amount of $5,000. Such deposit accompanying the successful bid shall be deposited into escrow until closing on the purchase of the subject parcel and payment of the remaining amount of the purchase price shall be made within 30 days. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become nonrefundable and shall be retained by the city as liquidated damages and not as a penalty, since the calculation of actual damages due to time lost, transaction expenses, and etc., will be difficult, if not impossible, to accurately calculate (such damages, as just defined, being referenced hereafter as “liquidated damages”); provided, however, that the purchaser may, at his/her option, deposit an additional $5,000 extension fee (hereinafter “extension fee”), in which case his/her time to make full payment shall be extended for one additional 60-day period. In the event full payment is not made by the conclusion of the additional 60-day period, an additional $1, 000 shall be retained by the city from the extension fee as liquidated damages relevant to the additional lost time and expense. The remainder of the extension fee shall be returned to the purchaser. The city council reserves the right to waive any irregularities in the bid process.
2. Disposition by Auction. Where property is sold at auction, the prevailing bidder must immediately tender a cash deposit or certified check for deposit into escrow as earnest money to the city of Asotin in the amount of $5,000. Payment of the remaining amount of the purchase price shall be made within 30 days. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become nonrefundable and shall be retained by the city as liquidated damages; provided, however, that the purchaser may, at his/her option, deposit an additional $5,000 extension fee, in which case his/her time to make full payment shall be extended for one additional 60-day period. In the event full payment is not made by the conclusion of the additional 60-day period, an additional $1,000 shall be retained by the city from the extension fee as liquidated damages relevant to the additional lost time and expense. The remainder of the extension fee shall be returned to the purchaser.
3. Disposition by Negotiated Sale. Where property is sold by negotiated sale, the purchaser shall deposit earnest money into escrow in the amount of $5,000 within three business days of execution of a purchase and sale agreement for the purchase of the subject parcel. Payment of the remaining balance of the purchase price shall be made within 30 days, unless otherwise specified in the purchase and sale agreement. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become nonrefundable and shall be retained by the city as liquidated damages; provided, however, that the purchaser may, at his/her option, deposit an additional $5,000 extension fee, in which case his/her time to make full payment shall be extended for one additional 60-day period. In the event full payment is not made by the conclusion of the additional 60-day period, an additional $1,000 shall be retained by the city from the extension fee as liquidated damages relevant to the additional lost time and expense. The remainder of the extension fee shall be returned to the purchaser.
4. Form of Conveyance. Conveyances shall be made by quitclaim deed or statutory warranty deed.
5. Closing Costs. All closing costs, exclusive of deed preparation, shall be borne by the purchaser including, but not limited to, survey work, title insurance if desired, recordation costs, brokerage and escrow fees if applicable, and the costs.
6. Transfer of Title. The title to any city property sold at public auction shall not be transferred until the purchase price therefor has been fully paid.
7. Purchase Restrictions. City officials and certain administrative officers may be restricted from purchasing surplus property due to conflict of interest concerns. Those who are involved in the decision to surplus property (the council) and those in charge of administering the sale (mayor, city clerk/treasurer, deputy clerk, or other city officer responsible for the sale) should not purchase the property. (Ord. 15-796 § 1, 2015)
3.44.050 Sale to abutting owners.
If the subject parcel can only be put to its highest and best use when aggregated with an abutter’s property because of its size, shape, topography, or other restriction, the subject parcel may be negotiated for sale to the abutter, provided:
A. The abutter is willing to purchase for the appraised value of the subject parcel;
B. If more than one qualifying abutter expresses interest in purchasing the subject parcel, the city council may solicit sealed bids from all; and
C. A person shall not be deemed to be an abutter if a right-of-way separates his/her property from the subject parcel unless the city has agreed to vacate the right-of-way in question or purchase will allow a higher and better use of the abutter’s property not otherwise permitted. (Ord. 15-796 § 1, 2015)
3.44.060 Intergovernmental transfers.
Intergovernmental transfers of real property shall be made in accordance with Chapter 39.33 RCW, RCW 43.09.210 and/or any other applicable statutes. (Ord. 15-796 § 1, 2015)
3.44.070 Statutory exceptions.
Certain city ordinances and provisions of the Revised Code of Washington impose special conditions for the disposition of municipal property. Where necessary, city officials shall comply with those laws, treating them as limited exceptions to this chapter. Exceptions include, but are not limited to, the following as they may from time to time be amended:
A. RCW 27.12.305 through 27.12.320: disposition of library materials;
B. RCW 35.21.088: equipment rental;
C. RCW 35.21.660 through 35.21.690 and 35.21.725 through 35.21.755: transfers to municipally chartered corporations;
D. Chapter 35.94 RCW: surplus utility property;
E. Chapters 39.33 and 39.34 RCW: intergovernmental agreements; alternate method for intergovernmental disposition of property;
F. RCW 46.52.145: disposition. (Ord. 15-796 § 1, 2015)
3.44.080 Disposition of property, other than real estate, to be declared as surplus.
A. Purpose. This section establishes procedures for disposition of property, other than real estate, which is surplus to the needs of the city. It is the intention of the city council that the procedures set forth in this section are preferred over others; therefore, special procedures called for under other legislation are to be deemed exceptions to this section and their use is to be limited accordingly.
B. Procedures. The procedures for the identification and proper disposal of surplus property as established by this section are as follows:
1. Definition. “Surplus” is defined as any tangible personal property owned by the city, which is not needed at present, or for the foreseeable future, or that is no longer of value or use to the city. Items included are those purchased, received as gifts, or found items.
2. Policy. City employees shall not directly or indirectly use, take, or dispose of city property other than in their official duties. This includes, but is not limited to, articles of clothing, supplies, tools, and vehicles. Items (including clothing) owned by the city found to be unfit for further service on the job shall be turned in to a designated point within the department. As the numbers of items turned in justifies, they will be declared surplus and sold pursuant to the procedures. No city-owned item shall be turned over to an individual (employee or other person) for his/her personal use other than items purchased by employee clothing allotments. Employees or employee and retired employee associated organizations shall not request and will not receive any preferential treatment in the disposal or sale of city surplus material. Certain city employees are excluded from purchasing city surplus items by Washington State law. These include those directly involved in declaring items surplus (i.e., elected officials), department heads, and those administering the sale. (RCW 42.23.030(6).)
3. Found Items. Items found by city employees in the course of their duties and not falling into one of the following areas shall be turned in to the department head as a “lost and found” item and disposed of as surplus property. Items found and fitting into one of the following may be disposed of as is reasonable, under the circumstances: those that are perishable; those that would create a health, sanitary, or safety problem if stored; those items that would reasonably be considered garbage. RCW 63.21.070 specifically disallows employees from personally keeping any property found in the course of employment.
4. Statutory Exceptions. Items found in the course of their official duties by the police department are to be disposed of in accordance with Washington State law regarding found or abandoned items by police departments. Certain city ordinances and provisions of the Revised Code of Washington impose special conditions for the disposition of municipal property. Where necessary, city officials shall comply with those laws, treating them as limited exceptions to this policy.
a. Responsibility for Administration. The city’s clerk/treasurer, or such other officer with equivalent duties as may from time to time be appointed, is responsible for the administration of this policy. The clerk/treasurer shall coordinate the disposition of surplus property, and shall aid the city council in determining the best method of disposal. The clerk/treasurer shall dispose of the property in the manner specified, and shall ensure that the proper fund is credited with any resulting proceeds. Any cost incurred in the sale shall then be paid from the receiving fund (i.e., auctioneer commission, advertising, etc.) at market value.
b. Surplus Property Schedule. A list of surplus property shall be generated semiannually by the clerk/treasurer. The clerk/treasurer shall periodically check with all department heads to determine when there are sufficient items to publish a surplus property list. When requested to do so by the clerk/treasurer, departments wishing to dispose of surplus property shall submit a listing of all property surplus to their department with sufficient information to properly describe the items. The listing shall contain a detailed description of the property, its location and condition.
c. Determination of Value. When requested by the clerk/treasurer to submit a listing of the surplus property, the department shall make an estimate of the reasonable market value in “as-is, where-is” condition, to be submitted to the clerk/treasurer with the surplus property listing. If the department responsible for the property cannot make the estimate, the clerk/treasurer shall determine the reasonable market value.
d. Determination of City Use. Before completing the property listing, the clerk/treasurer shall determine whether any other department of the city has a use for the property. If such a use is found, the clerk/treasurer shall transfer ownership and shall ensure that, if appropriate, the fund disposing of the property is reimbursed for its reasonable market value. If no other city department has use for the property, the following procedures shall apply: If the estimated value of the surplus property is $1,000 or less, the clerk/treasurer may dispose of the property in any manner deemed to be in the city’s best interests without reporting the matter to city council. If the surplus property has an estimated value between $1,000.01 and $19,999.99, the clerk/treasurer may dispose of the property in one of the specifically approved methods listed herein below. This must be reported to the city council.
e. Report to City Council. The clerk/treasurer shall compile a listing of all surplus property of the city and submit for city council review at a regular meeting.
f. Council Action. Disposition of surplus property must be approved by a majority of the city council. The procedure is as follows:
i. The council shall examine the report of the clerk/treasurer at a public meeting and may, by majority vote, declare property as surplus to the needs of the city and available for disposition.
ii. The council shall direct the clerk/treasurer to carry out their directions for disposal of the surplus property with the assistance of the department owning the property.
iii. In certain situations a public hearing may be required before city council action or the city council may hold one at their discretion. Transfers of property in excess of $5,000 to another governmental agency at or below market value is an example of a situation in which a public hearing is required by state law.
g. Guidelines for Decision of the Council. The council shall direct the clerk/treasurer to dispose of surplus property in the manner deemed to be in the best interest of the city. Considerations for such disposition shall include, but are not limited to:
i. Possible future requirements of the city;
ii. Present value of the property;
iii. Likelihood of locating a buyer;
iv. Intergovernmental cooperation;
v. The general welfare of the citizens of the city.
h. Methods of Disposition. If the surplus property is not required by any department of the city, the clerk/treasurer shall utilize one of the following methods of disposition:
i. Public auction;
ii. Solicitation of written bids;
iii. Negotiated sale to one or more designated buyers;
iv. Transfer to another agency of government at or below reasonable market value;
v. Donation to a charitable or nonprofit organization. (Ord. 15-796 § 1, 2015; Ord. 15-792 §§ 1, 2, 2015)