(a) Surplus Property. Surplus Property is that property of the City, whether real or personal, tangible or intangible, that the City Council determines in its sole discretion is no longer needed by the City.
(b) Transactions with Governmental Authorities. The City Council may, in its sole discretion, authorize the City to sell, lease as lessor, or dispose of any of its real or personal property or any interest therein or any part thereof to the United States of America, or any agency or instrumentality thereof or the State, as authorized in Article five, chapter one of the State Code or any successor provisions thereof.
(c) Sale of property worth less than $1.000 in the Aggregate. The City Council may authorize the Mayor, Clerk or appropriate Department Heads to sell Surplus Property the fair and adequate value of which is less than $1,000.00 in the aggregate but not including any Real Property Rights, which shall be known herein as "Minor Surplus Property", according to the terms of this subsection.
(1) The City Official seeking the City Council's authorization to sell Minor Surplus Property shall provide an itemized list of such Minor Surplus Property to the City Council identifying the Minor Surplus Property and its estimated value;
(2) The itemized list shall, before its presentation to City Council, be circulated to each and every City Department Head and in the event that any other Department Head needs the Minor Surplus Property the same shall be transferred;
(3) Assuming that the City Council authorizes the sale of the Minor Surplus Property as presented in writing, the so-authorized Department Head may:
A. Make inquires with Persons or Political Subdivisions known to the Department Head to be interested in purchasing items such as those authorized by the City Council to be sold; or
B. Invite the public to view the Minor Surplus Property authorized by the City Council to be sold and make offers to purchase the same or a portion of the same and such offers may be accepted or rejected by the Department Head in his or her discretion provided that the Department Head is acting in the Best Interests of the City and each such offer and acceptance is witnessed by another City Official; or
C. Offer the items for sale to the public in an online or other electronic forum that offers the potential for offers or bids to be made by the public via the internet or similar electronic means.
D. The authorized City Official shall document each sale with records sufficient to satisfy the requirements of this Article and shall report the results of the sales to the City Council at the next available opportunity.
E. The authorized City Official may not accept any form of payment in exchange for Minor Surplus Property the value of which is greater than $200.00, other than Immediately Available Lawful Currency. (Minor Surplus Property with a selling price of $200.00 and below may be exchanged for a personal check or Immediately Available Lawful Currency).
F. The authorized City Official shall immediately turn over all funds collected in the sale of the Minor Surplus Property to the Clerk for deposit to the City's accounts.
(d) Trade-in Transactions. The City Council may authorize the trading-in or trading of any real or personal property, whether tangible or intangible, owned by the City to facilitate the purchase of new or other property for the City provided that the acquisition of the new property is accomplished according to this Article.
(e) Lease of Real Propertv Rights. Unless otherwise covered in subsection (b) hereof, the City may lease, in accordance with the provisions of this subsection, as lessor any of its real or personal property or any interest therein or any part thereof for a fair and adequate consideration and for a term not exceeding fifty years and otherwise in accordance with the State Code.
(1) The City Council shall hold a public hearing on the proposed lease following notice of the date, time, place and purpose of the public hearing having been published as a Class I legal advertisement in compliance with the provisions of article three, chapter fifty-nine of the State Code, or any successor provision thereto and the publication area for the publication shall be the municipality;
(2) Following the public hearing required by this subsection, including an adequate opportunity for the public to be heard on the issue, the City Council may approve the terms and conditions of any proposed lease and such terms and conditions must be approved in the form contained in the written lease itself;
(3) The City Council may, in the event it approves the lease, authorize and direct the Mayor to execute the same on behalf of the City.
(f) Sale at Public Auction. All Surplus Property, including Real Property Rights, of the City to be sold, other than as described in subparts (b), (c) or (d) of this Section, shall be sold at public auction. In the event the City Council approves the sale of City property necessitating an auction thereof, such auction shall be conducted by one of the two following methods, unless the sale involves Real Property Rights in which case the public auction must be conducted under the provisions of the "Live Public Auction":
(1) Sealed Bid - Public Auction.
A. The City Council shall approve in writing the sale, of identifiable Surplus Property including Real Property Rights, or portions thereof belonging to the City to be sold at auction;
B. The City Council shall approve the beginning date and time of the auction and the ending date and time of the auction and may, in executive session as such sessions may be permitted by State Code, set a minimum price below which the City may reject all offers;
C. The Clerk shall publish a class II legal advertisement in compliance with the provisions of article three, chapter fifty-nine of the State Code, or any successor provision and the publication area for the publications shall be the Municipality. In addition the Clerk may publish notice of the auction in any other location suitable under this Article for publication of a Solicitation;
D. The notice shall contain (i) the applicable times and dates of the auction, (ii) the location where the Surplus Property may be viewed by the public and (iii) a brief description of the Surplus Property to be sold, however in the event the Surplus Property consists of Real Property Rights or any interest in any property of the City that requires a deed or contract of sale, the length of which precludes its publication in its entirety, the notice shall contain adequate contact information detailing the manner in which prospective buyers may receive the offered deed or contract of sale;
E. Sealed written offers may be submitted to the Clerk during the stated times of the auction;
F. On the appropriate date and time, the Mayor shall open all offers submitted in writing, in the presence of the Clerk;
G. The Mayor shall select the offeror with the highest offered price and shall verify with the Clerk that the selected offeror in fact offered the highest price;
H. Provided that the highest offer is above any minimum price established by the City Council, the Clerk shall complete a written record of the transaction including the purchaser’s name and address, the purchase price and a copy of the authorization from the City Council, and both the Clerk and the Mayor shall sign the same;
I. The Clerk shall inform the purchaser that he / she / it offered the highest price and has two Business Days to pay to the Clerk the agreed upon purchase price in Immediately Available Lawful Currency and to take delivery of the purchased Surplus Property from the City;
J. Under no circumstances may the purchaser take possession of the Surplus Property prior to transferring Immediately Available Lawful Currency to the Clerk which funds shall be deposited with the City's bank as soon as is possible;
K. The Clerk shall deliver a report of the sale reading the title of the authorization of the City Council and the purchase price received at auction at the next City Council meeting.
(2) Live Public Auction.
A. The City Council shall approve in writing the sale, of identifiable Surplus Property including Real Property Rights, or portions thereof belonging to the City to be sold at auction;
B. The City Council shall approve the date and time of the auction and may, in executive session as such sessions may be permitted by State Code, set a minimum price below which the City may reject all offers;
C. The Clerk shall publish a class II legal advertisement in compliance with the provisions of article three, chapter fifty-nine of the State Code, or any successor provision and the publication area for the publications shall be the Municipality. In addition the Clerk may publish notice of the auction in any other location suitable under this Article for publication of a Solicitation;
D. The notice shall contain (i) the time and date of the auction, (ii) the location of the auction and (iii) a brief description of the Surplus Property to be sold, however in the event the Surplus Property consists of Real Property Rights or any interest in any property of the City that requires a deed or contract of sale, the length of which precludes its publication in its entirety, the notice shall contain adequate contact information detailing the manner in which prospective buyers may receive the offered deed or contract of sale;
E. At the appointed location on the appointed date and at the appointed time the City shall cause the auction to be conducted by a licensed auctioneer or auction firm, with the highest offer being accepted for each item of Surplus Property sold;
F. The Clerk shall complete a written record of the transaction including the purchaser’s name and address, the purchase price and a copy of the authorization from the City Council, and both the Clerk and the Mayor shall sign the same;
G. The Clerk shall inform the purchaser that he / she / it has two Business Days to pay to the Clerk the agreed upon purchase price in Immediately Available Lawful Currency and to take delivery of the purchased Surplus Property from the City;
H. Under no circumstances may the purchaser take possession of the Surplus Property prior to transferring Immediately Available Lawful Currency to the Clerk which funds shall be deposited with the City's bank as soon as is possible;
I. The Clerk shall deliver a report of the sale reading the title of the authorization of the City Council and the purchase price received at auction at the next City Council meeting.
(g) Warranties and Representations. No City Official is authorized to make any representations or warranties whatsoever with regard to the condition of Surplus Property nor its fitness for any particular use. All Surplus Property of the City, sold under this Article, is sold by the City without any guaranties, representations or warranties as to quality, fitness, safety or any other representation or warranty except as otherwise required by law.
(Ord. 641. Passed 12-7-09.)