Subd. 1. Disposal of Abandoned Motor Vehicles.
A. Definitions.
1. The term "abandoned vehicle" means a motor vehicle as defined in M.S. Chapter 168B, as amended from time to time, that has remained illegally for a period of more than 48 hours on public property owned or controlled by a unit of government, or more than four hours on that property when it is properly posted, or on private property for a period of time, as determined under M.S. Chapter 168B, as it may be amended from time to time, without the consent of the person in control of the property and lacks vital component parts or is in an inoperable condition such that it has no substantial potential for further use consistent with its usual functions, unless it is kept in an enclosed garage or building. It shall also mean a motor vehicle voluntarily surrendered by its owner to and accepted by the city. A classic car or pioneer car, as defined by M.S. Chapter 168B, as it may be amended from time to time, shall not be considered an abandoned motor vehicle within the meaning of this section. Vehicles on the premises of junk yards or automobile graveyards, which are defined, maintained, and licensed in accordance with the City Code, shall not be considered to be abandoned motor vehicles within the meaning of this section.
2. The term "vital component parts" means those parts of a motor vehicle that are essential to the mechanical functioning of the vehicle, including, but not limited to, the motor, drive train and wheels.
B. Custody. The city may take into custody and impound any abandoned motor vehicle.
C. Notice.
1. When the city takes possession of an abandoned motor vehicle or impounds a motor vehicle, the city shall give notice of the taking within five days. The notice shall set forth the date and place of the taking, the year, make, model and serial number of the abandoned motor vehicle, if the information can be reasonably obtained, and the place where the vehicle is being held, shall inform the owner and any lien holders of their right to reclaim the vehicle under Subd. 1.D. below, and shall state that failure of the owner or lien holder to exercise his or her right to reclaim the vehicle and contents shall be deemed a waiver by him or her of all rights, title and interest in the vehicle and a consent to the sale of the vehicle and contents at a public auction pursuant to Subd. 1.E. below.
2. The notice shall be sent by mail to the registered owner, if any, of the abandoned motor vehicle and to all readily identifiable lien holders of record. If it is impossible to determine with reasonable certainty the identity and address of the registered owner and all lien holders, the notice shall be published once in the official newspaper. Published notices may be grouped together for convenience and economy.
D. Right to Reclaim.
1. The owner or any lien holder of an abandoned motor vehicle shall have a right to reclaim the vehicle from the city upon payment of all towing and storage charges resulting from taking the vehicle into custody within 15 days after the date of the notice required by this subdivision.
2. Nothing in this subdivision shall be construed to impair any lien of a garage keeper under the laws of this state, or the right of the lien holder to foreclose. For the purposes of this Subd. 1.D., "garage keeper" is an operator of a parking place or establishment, an operator of a motor vehicle storage facility, or an operator of an establishment for the servicing, repair or maintenance of motor vehicles.
E. Public Sale.
1. An impounded vehicle is eligible for disposal or sale under this section 15 days after notice to the owner if the vehicle is determined to be a junk vehicle, as defined by M.S. Chapter 168B, as it may be amended from time to time, or an abandoned vehicle. If an unauthorized vehicle (as defined as M.S. Chapter 168B, as it may be amended from time to time) is impounded by the city, the impounded vehicle is eligible for disposal or sale the earlier of 45 days after notice to the owner of the date of a voluntary written title transfer by the registered owner to the impound lot operator.
2. An abandoned motor vehicle and contents taken into custody and not reclaimed within the waiting periods described in the previous subdivision, shall be sold to the highest bidder at public auction or sale, following one notice published at least seven days prior to the auction or sale. The purchaser shall be given a receipt in a form prescribed by the Registrar of Motor Vehicles which shall be sufficient title to dispose of the vehicle. The receipt shall also entitle the purchaser to register the vehicle and receive a certificate of title, free and clear of all liens and claims of ownership. Before the vehicle is issued a new certificate of title, it must receive a motor vehicle safety check.
3. From the proceeds of the sale pursuant to this section, the city shall reimburse itself for the cost of towing, preserving and storing the vehicle, and all administrative, notice and publication costs incurred pursuant to this subdivision. Any remainder from the proceeds of a sale shall be held for the owner of the vehicle or an entitles lien holder for 90 days and then shall be deposited in the General Fund of the city.
F. Contracts and Disposal.
1. The city may contract with any qualified person for collection, storage, incineration, volume reduction, transportation or other services necessary to prepare abandoned motor vehicles and other scrap metal for recycling or other methods of disposal.
2. Where the city enters into a contract with a person duly licensed by the Minnesota Pollution Control Agency, the Agency shall review the contract to determine whether it conforms to the Agency's plan for solid waste disposal. A contract that does so conform may be approved by the Agency. Where a contract has been approved, the Agency may reimburse the city for the costs incurred under the contract which have not been reimbursed.
3. If the city utilizes its own equipment and personnel for disposal of the abandoned motor vehicle, it shall be entitled to reimbursement for the cost thereof along with its other costs as herein provided.
Subd. 2. Disposal of Unclaimed Property.
A. Definition. The term "abandoned property" means tangible or intangible property that has lawfully come into the possession of the city in the course of municipal operations, remains unclaimed by the owner, and has been in the possession of the city for at least 60 days and has been declared such by a resolution of the Council.
B. Preliminary Notice. If the City Administrator knows the identity and whereabouts of the owner, he or she shall serve written notice upon him or her at least 30 days prior to a declaration of abandonment by the Council. If the city acquired possession from a prior holder, the identity and whereabouts of whom are known by the City Administrator, notice shall also be served upon him or her. The notice shall describe the property and state that unless it is claimed and proof of ownership, or entitlement to possession established, the matter of declaring it abandoned property will be brought to the attention of the Council after the expiration of 30 days from the date of the notice.
C. Notice and Sale. Upon adoption of a resolution declaring certain property to be abandoned property, the City Administrator shall publish a notice thereof describing the same, together with the names (if known) and addresses (if known) of prior owners and holders thereof, and including a brief description of the property. The text of the notice shall also state the time, place and manner of sale of all such property, except cash and negotiables. The notice shall be published once at least three weeks prior to sale. Sale shall be made to the highest bidder at public auction or sale conducted in the manner directed by the Council in its resolution declaring property abandoned and stated in the notice.
D. Fund and Claims Thereon. All proceeds from the sale shall be paid into the General Fund of the city and expenses thereof paid therefrom. The former owner, if he or she makes claim within eight months from the date of publication of the notice herein provided, and upon application and satisfactory proof of ownership, may be paid the amount of cash or negotiables or, in the case of property sold, the amount received therefor, less a pro rata share of the expenses of storage, publication of notice, and sale expenses, but without interest. The payment shall be also made from the General Fund.
Subd. 3. Disposal of Surplus Property.
A. Declaration of Surplus Property and Authorizing Its Sale. The City Administrator may, from time to time, recommend to the Council that certain tangible, personal property owned by the city is no longer needed for a municipal purpose and should be sold. "Surplus" is defined for the purposes of this section to mean any tangible, personal property owned by the city that is not needed at present or in the foreseeable future or that is no longer of value or use to the city. By action of the Council, any property shall be declared surplus, the value estimated and the City Administrator authorized to dispose of the property in the manner as hereinafter provided.
B. Surplus Property With a Total Estimated Value of Less than $10,000.
1. The City Administrator may sell surplus property with a total value of less than $10,000 in one of the specifically approved methods listed below without submitting a report to the City Council:
a. Public auction;
b. Solicitation of written bids;
c. Negotiated sale to one or more designated buyers; or
d. Transfer to another agency of government at or below reasonable market value.
2. Alternatively, the City Administrator may request City Council's authorization to dispose of the surplus property in another manner.
C. Surplus Property With a Total Estimated Value Over $10,000. The City Administrator shall offer for public sale, to the highest bidder, surplus property with a total estimated value over $10,000. Notice of the public sale shall be given stating time and place of sale and generally describing property to be sold at least ten days prior to the date of sale by publication once in the official newspaper. The sale shall be to the person submitting the highest bid.
D. Receipts From Sales of Surplus Property. Unless state law provides otherwise, all receipts from sales of surplus property under this section shall be placed in the account for the department disposing of the excess property.
Subd. 4. Persons Who May Not Purchase - Exception.
A. No employee of the city who is a member of the administrative staff, 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, if they are the highest responsible bidder and if at least one-week's published or posted notice of sale is given.
B. 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.
(Ord. 58, Third Series, passed 2-20-2001)