Disposal of Property

1
Disposal of Property

• Frayda S. Bluestein
• Institute of Government

2
Basic Procedures

• Competitive Procedures
• Sealed bid
• Upset bid
• Public auction
• Must be used for all sales of real property, and
• All sales of personal property valued at 30,000
  or more

3
Basic Procedures

• Procedures that do not require competition
• Private sale requires notice and board action
• Informal sale board delegates authority to sell
  personal property valued at less than 5,000.
  Must document property sold

4
Sale of guns

• May sell to employees if not involved in surplus
  determination
• Dollar range does not require competition
• Consider public relations concerns
• Note provisions regarding awarding guns to
  retiring officers

5
Constitutional Consideration

• State constitution requires local governments to
  receive value when disposing of property
• Value can be monetary or a promise of use for a
  public purpose

6
Donating Property

• Cities and Counties may donate property to a
  nonprofit that will use the property for a
  purpose that the unit has authority to fund
• Board must approve under the private sale
  procedure
• Limitation on use must be included in the
  contract
• Schools must receive monetary consideration.

7
Conflicts of Interest

• Elected officials or employees who are involved
  in making the contract are prohibited from
  contracting with their own units
• Purchase of property from the unit is a contract
  covered by this prohibition
• People involved in the surplus property process
  are prohibited from purchasing from the unit.

8
Determination to sell property

• Local government must determine that property is
  no longer needed for public use
• Not necessary for board to declare all property
  surplus (though many do as a matter of practice)
• Internal procedures in place for fixed assets

9
Funds to Schools

• Constitution requires that clear proceeds of
  fines and forfeitures be given to the public
  school system
• Statute requires separate procedure for sale of
  seized and abandoned property
• Clear proceeds go to schools