(a) Upon determining that an item of surplus property should be sold, the Director shall determine, using available valuation resources, including, for example, blue or red books, the fair market value of the item of property. If the Director determines that the item of property has a fair market value of less than ten thousand dollars ($10,000.00), then the Director may solicit offers to purchase the property employing any commercially reasonable method for soliciting offers, including but not limited to listings upon electronic auction websites, such as 'eBay,' or the Director may dispose of the property at a public auction. A "trade in" of property valued at less than ten thousand dollars ($10,000.00) made contemporaneously with the purchase of a same or similar replacement property is a commercially reasonable offer of purchase under this section.
(1) If the Director elects to solicit offers for the property, the Director shall sell the property to the highest offeror, and in no event shall the property be sold for less than three-fourths of its determined fair market value. Prior to entering into a contract to sell the property, the Director shall submit the proposal to the Board of Control who shall, meet and, upon review, either approve or reject the proposed sale. In the event the Board rejects the proposed sale, it shall publicly state its reasons for so doing.
(2) If the Director elects to dispose of the property at a public auction, the Director shall first obtain the approval of the Board of Control prior to disposing of the property by this method.
(3) If the Director elects to dispose of the property at an electronic auction website, the Director shall first obtain the approval of the Board of Control prior to disposing of the property by this method.
(b) If an item of surplus property is determined to have a fair market value in excess of ten thousand dollars ($10,000.00), then Council shall designate, by ordinance, a commercially reasonable method for soliciting offers for the purchase of the property, including but not limited to listings upon electronic auction website, such as ‘eBay' and authorize the sale of the surplus property by that method.
(c) Not more than once annually, the Mayor may schedule a sale of surplus property via a public sale. Such public sale may include surplus property found within any Department or Division within the City, provided each item of property has a fair market value of less than two hundred fifty dollars ($250.00). The procedure shall be as follows:
(1) A list of surplus property to be offered for sale shall be assembled by the Mayor or his designee. The Mayor or his designee shall establish the fair market value of the item of property to be offered for sale.
(2) The Mayor or his designee shall submit the list of surplus property to be sold with corresponding fair market value to the Board of Control. The Board of Control shall (a) approve or disapprove of the items to be offered for sale; and (b) approve or disapprove of the fair market value determination.
(3) The Mayor shall select a location, date and hours for the public sale of surplus property. The location, date and hours of the public sale shall be announced on the City website, the City cable channel and shall be published at least once in a newspaper of general circulation.
(4) The surplus property approved for sale by the Board of Control shall be offered for sale at the noticed public sale. No item of surplus property shall be sold for less than the approved fair market value.
(Ord. 2016-119. Passed 11-15-16.)