Subd. 1. Custody of unclaimed personalty. Any money or personal property coming into the possession of any city officer, agent or employee, or member of any city department shall, within 24 hours, be turned over to the responsible authority by the officer, agent or employee or member of the city department. The responsible authority shall make provisions for receiving and safekeeping of property and money delivered to him or her and coming into his or her possession in the course of municipal operations. A receipt shall be issued to the person delivering the property or money to the city. The property shall be stored in a safe place and the money deposited with the City Treasurer in a special account for a period of three months unless claimed by the lawful owner.
Subd. 2. Claims by owners. During the three month period, the responsible authority shall make a search to locate the lawful owner. He or she may deliver the property or order the money paid to the owner thereof after receiving satisfactory proof of ownership and after providing ten days notice by mail to the person, other than the police officer or city employee, who delivered the property and to the other person who has asserted a claim of ownership. The Administrator shall not issue any order for the disbursement of the money without the written order of the responsible authority. If ownership cannot be determined to his or her satisfaction, the responsible authority may refuse to deliver the property or order the payment of the money to anyone until ordered to do so by a court of competent jurisdiction.
Subd. 3. Claim by finder. If the lawful owner does not claim the property or money during this three month period, the responsible authority may deliver the property or order the money paid to the person, other than the police officer or city employee, who delivered it to him or her if the finder shall have previously asserted in writing a claim to the property or money.
Subd. 4. Disposition of unclaimed money. If any money is not claimed by the lawful owner or finder within the three month period, the responsible authority shall so notify the Administrator and the money shall then be transferred to the General Fund of the city.
Subd. 5. Sale and disposal of unclaimed property.
a. Public auction or use by city. After the three month period, property not delivered to the lawful owner or finder shall be sold by the responsible authority at public auction or appropriated to the use of the city.
(1) Notice of sale. On behalf of the city, the responsible authority shall sell all unclaimed property and all property not appropriated to or by the city following at least one published notice thereof in the city’s official newspaper not less than two weeks prior to the sale. The published notice shall contain the following information:
(a) Time and place of sale;
(b) Description of property to be sold;
(c) Terms of payment;
(d) That sale will be at public auction and to the highest bidder.
(2) Use by city or charitable organization. Instead of being sold at auction, any article or property may be appropriated to the use of the city by any department in need thereof or may be appropriated and given over to the use of any nonprofit, charitable corporation, organization or foundation for a charitable purpose, upon approval of such a method of appropriation by the City Council.
b. Public sale. If the volume and value of unclaimed property is insufficient, in the opinion of both the Chief of Police and the City Administrator/Clerk, to justify a public auction, the unclaimed property may be sold by public sale. The responsible authority shall follow the procedure in paragraph a(1) above except that sale will be at a public sale to the person with the first reasonable offer.
c. Proceeds of sale. The responsible authority shall remit the proceeds of the auction/sale to the City Treasurer for deposit in the General Fund.
d. Disposal of unsold or unused property. Any property offered for sale but not sold and not suitable for appropriation to the use of the city shall be deemed worthless and shall be disposed of in the manner as the City Administrator/Clerk directs.
e. Reclamation by owner. The lawful owner of property sold at public auction or sale shall, upon application to the City Administrator/Clerk within six months from the date of sale and upon delivery of satisfactory proof of ownership, be paid the sale price from the General Fund, less the reasonable expenses incurred in the movement, storage, care and sale of the property.
(1987 Code, § 604.02)