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(A) Declaration of surplus and authorizing sale of property. The City Administrator may, from time to time, recommend to the Council that certain personal property (chattels) owned by the city is no longer needed for a municipal purpose and should be sold. By action of the Council, the property shall be declared surplus, the value estimated and the City Administrator authorized to dispose of the property in the manner stated herein.
(B) Surplus property with a total estimated value of less than $100. The City Administrator may sell surplus property with a total value of less than $100 through negotiated sale.
(C) Surplus property with a total estimated value between $100 and $500. The City Administrator shall offer for public sale by auction, to the highest bidder, surplus property with a total estimated value of $100 to $500. Notice of the public sale shall be given at least 10 days prior to the date of sale at the City Administrator’s option by either publication once in the official newspaper, or by posting in a conspicuous place in the City Hall stating time and place of sale and generally describing the property to be sold.
(D) Surplus property with a total estimated value over $500. The City Administrator shall offer for public sale, to the highest bidder, surplus property with a total estimated value over $500. Notice of the public sale shall be given at least 10 days prior to the date of sale by publication once in the official newspaper stating time and place of sale and generally describing property to be sold. Interested purchasers shall provide a sealed bid or the City Administrator may, at the Administrator's discretion, choose an electronic sale process described in M.S. § 471.345, subd. 17. The City Council may choose to reject all bids if the bids do not adequately reimburse the city its costs.
(E) The City Administrator shall take custody of property that comes into the city’s possession in the course of the city’s municipal operations. The City Administrator may offer for sale to the highest bidder all unclaimed property, excluding police forfeited property governed by division (F) herein, that remains unclaimed by its owner for a period of 60 days. The unclaimed property may be sold either by public auction or sale or by a private sale through a nonprofit organization that has a significant mission of community service. If the sale is to be by public auction, the city shall give 10 days’ published notice describing the property found or recovered and to be sold, and specifying the time and place of sale. The notice must be published at least once in a legal newspaper published in the city or, if there is none in the city, published in Scott County. All funds received from the sale of unclaimed property shall be deposited into the General Fund, subject to the right of the former owner to payment of the sale price from the General Fund upon application and satisfactory proof of ownership within 6 months of the sale.
(F) Police forfeited property. The Chief of Police at his or her discretion, may offer for sale or trade any vehicles, real estate, or other property obtained by the forfeiture of property statutes governing such as listed in Minnesota State Statutes. Proceeds from such sale shall be distributed and disbursed based on state statutes governing forfeiture proceeds.
(G) Receipts from sales of surplus property. All receipts from sales of surplus property under this section shall be placed in the General Fund.
(H) Persons who may not purchase; exception.
(1) No employee of the city who is a member of the administrative staff, a department head, a member of the Council, or an advisor serving the city in a professional capacity, may be a purchaser of property under this section. Other city employees may be purchasers if they are not directly involved in the sale, and if they are the highest responsible bidder pursuant to the above process.
(2) It is unlawful for any person to be a purchaser of property under this section if the purchase is prohibited by the terms of this section.
(Prior Code, § 2.60) (Am. Ord. 2017-01, passed 5-1-2017)