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SCRAP: Property which, because of its worn, damaged, deteriorated, incomplete condition or specialized nature has no reasonable prospect of sale or use as designed.
SURPLUS PROPERTY: Items, commodities, materials, supplies or equipment owned by the City which is determined by the City to be excess, obsolete, antiquated, unused, scrap or not needed.
B. Identification Of Surplus Property: Periodically, as is necessary for the efficient administration of the City or upon request of the Mayor, the department heads of the City shall compose lists of City owned property under the control of their respective departments which they deem to be surplus property. Such lists shall be submitted to the Mayor and shall include:
1. A description of the item(s).
2. The number/quantity of each item(s).
3. The model number, serial number, VIN number or other identifying numbers as applicable to each item.
4. A statement by the department head as to each item indicating whether it is sought to be declared surplus based on its status as either:
e. Not needed,
5. A concise written explanation concerning each item setting forth the factual basis describing why the item is believed by them to be excess, obsolete, antiquated, unused, not needed, or scrap.
6. A written statement as to each item indicating the opinion and providing a short explanation of the basis of the opinion of the department head as to whether the property can be sold for a value exceeding the probable cost of selling the item. The department head's written opinion and explanation must include, set forth and be supported by a reasonable inquiry made by the department head of:
a. The possible manner(s) of sale by which the property might be sold,
b. The probable cost(s) associated with the sale of the property,
c. The probable range of sale prices the property may receive in a sale.
C. Presentation Of Lists To The Council: Lists of surplus property as prescribed in subsection B of this section which have been submitted to the Mayor shall be presented to the Council by the Mayor for consideration and possible action to declare the property "surplus" and determine the method of disposal of the "surplus property".
D. City Council Action: The City Council, when presented with the list, shall consider the information concerning the property contained in the list and in their judgment, make a formal declaration of the property's status as surplus. The City Council may, in its discretion, defer its decision as to all or some part of the property set forth on the list to a future date and may require further inquiry and investigation be made of the property's status and/or appropriate method(s) of disposal and reporting thereof to the Council. The City Council shall, at the time it declares property to be surplus, determine and prescribe the method of disposal of the property to be made.
E. Methods Of Disposal Of Surplus Property: The methods of disposal of surplus property are:
1. Sealed Bid: The City Council may determine that the property should be sold by sealed bid.
a. If the Council determines the property should be sold by sealed bid the Council shall additionally:
(1) Specify a date and time certain as a deadline for bids to be received by the City; and
(2) Specify a date and time certain at which the bids will be opened and sale awarded.
b. The City Clerk shall be the designated agent for purposes of receiving and holding such sealed bids and shall, at the date of sale, open the bids and determine the successful bidders as those persons offering the highest price.
2. Public Auction: The City Council may determine that the property should be sold by public auction. In such event, the City Council shall also determine whether the public auction shall be held as a tangible event at a public location or an electronic event or listing of the property on an internet sales site which is made available to the public via the internet.
a. If the City Council determines that the auction shall be held as a tangible event at a public location, then it shall additionally specify:
(1) The date and time of the auction; and
(2) The place of the auction.
b. If the City Council determines that the auction shall be held as an electronic event or listing of the property on an internet sales site, then it shall additionally specify:
(1) The date by which the property shall be listed; and
(2) The site upon which the property shall be listed; and
(3) The date by which the listing shall be removed and buyer determined.
3. Scrap: If the City Council determines that said property should be sold as scrap the Mayor shall be charged to cause market quotes to be obtained from at least three (3) sources and to make a report of the quotes received to the Council which shall take action to approve or not approve the sale thereof to the highest bid. In the alternative, the Mayor may cause the quotes to be obtained prior to the determination of the Council that the property be sold as scrap which may be presented to the Council contemporaneously upon the same agenda for approval of sale following the Council's declaration that the property be sold as scrap. In the discretion of the Council, it may make such other and further requirements of the sale as deemed by it to be in the best interest of the City to facilitate a sale at market prices, inclusive of the other methods of disposal prescribed by this section.
4. Trade-In: The City Council may determine and prescribe that the property be disposed of by "trade-in" for replacement equipment at such values and prices as deemed to be in the best interest of the City and consistent with market rates.
5. Disposal By Other Means: Property may be disposed of by other specified means which are deemed by the Council to be in the best interest of the City upon specified grounds demonstrating the "best interest". Disposal may include disposal of the property as refuse where the costs associated with selling the property would be reasonably likely to exceed the value to be received in a sale of the property.
F. Sales To City Employees: Sales of property to employees of the City is prohibited unless the property is sold by sealed bid or public auction inclusive of both tangible events at a public location or an electronic event or listing of the property on an internet sales site which is made available to the public via the internet.
G. Lump Sum Bid: In the event bids are received stating a single, lump sum price to be paid for the entire list or a portion thereof, the City Clerk shall total the highest bids submitted on the individual items of property which are the subject of the lump sum bid and if the lump sum bid is greater than the aggregate of the highest bids submitted on an individual basis, shall declare the lump sum bid the successful bidder. If the lump sum bid is less than the aggregate of the highest bids submitted on an individual basis, the property shall be sold to the individual bidders.
H. Notification To Successful Bidder: Persons determined to be the successful bidders shall be notified by the City Clerk within seven (7) days by mail that they have been determined to be the successful bidder and they have five (5) days in which to collect the property. If such property is not collected by the bidder within the five (5) day period, that bid will be discarded and the next highest bidder will be determined to be the successful bidder.
I. Notice Of Sale:
1. In the event of a sale by public auction as a tangible event at a public location or by sealed bid, notice of sale of City surplus or obsolete property shall be by a single publication in a newspaper of general circulation in the City, at least ten (10) days but not more than twenty (20) days prior to the date of sale. The notice shall include:
a. Type Of Sale: Whether the sale is to be by sealed bid or by public auction; and
b. List Of Items: A list of the items to be sold which sufficiently discloses the type of property to be sold;
2. In the event of a sale by public auction as a tangible event at a public location, the notice shall additionally provide the location, time and date of the sale.
3. In the event of a sale by sealed bid the notice shall additionally provide:
a. The name and address of the City's agent for purposes of receiving bids; and
b. The deadline for receiving bids; and
c. The location of the property to be sold and the days and times at which the property may be viewed by persons interested in bidding for its purchase; and
d. A statement to bidders requiring the bids received to contain the name, address and telephone number of the person submitting the bid. (Ord. 2017-2, 2-21-2017)