CR 08-033 Forfeited VehiclesApril 1, 2008
Proposed Action
Overview
Supporting Information
• Ordinance 2008 -996
Ji Genellie
Assistant City Manager
FORFEITED VEHICLES
Council Report 2008 -033
Staff recommends adoption of the following motion: Approve Ordinance 2008 -996 amending Section
305 of the Hopkins City Code for first reading.
This action will amend the Hopkins City Code regarding the procedures for the disposition of surplus
property.
The City of Hopkins acquires vehicles that are forfeited because the owners have been arrested for
DUI. Forfeited vehicles become the property of the City and can be sold with the proceeds coming
back to the City. The vehicles do not legally become the property of the City until all of the legal
procedures are completed. This often takes six months or more.
Current City ordinance limits the manner in which the City can dispose of surplus property, which
would include these vehicles. Section 305.05 allows the City to dispose of property through public
auction, direct sale to the public, or by donation. The City normally uses a public vehicle auction
process for its surplus vehicles, such as used police cars and public works trucks. Unfortunately, the
public auction companies do not store vehicles. The City does not have room to store the forfeited
vehicles so these vehicles end being stored at the City's tow company. The result is that the storage fees
can end up costing as much or more than the City earns from the sale of the vehicle.
An alternative used by other cities is to turn the vehicle over to an auction company that sells cars to
dealers. These companies store the vehicle, clean and prep the vehicle, and prepare the title. The
vehicle is then auctioned to dealers. These companies take 20% of the sale price with the City receiving
the rest. Staff proposes that Section 305 be amended to allow the City to dispose of surplus property in
any manner allowed by the State of Minnesota.
ATTEST:
AN ORDINANCE AMENDING SECTION 305 OF THE HOPKINS CITY CODE
THE COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Section 305.05 of the Hopkins City Code shall be amended as follows:
305.05 Disposition of Unclaimed or Surplus Property. Unclaimed or surplus property can be
disposed of using the following methods: 1) Public auction, 2) direct sale to the public; 3)
donation to a nonprofit organization or other governmental unit; Of 4) in the case of damaged
property or property which has no significant value, the property may be recycled or disposed of
as refuse; or 5) any other method that is approved of by State Statute.
Section 2.
First Reading: April 1, 2008
Second Reading: April 15, 2008
Date of Publication: April 24, 2008
Date Ordinance Takes Effect: April 24, 2008
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE NO. 2008 -996
City Attorney Signature Date
Eugene J. Maxwell, Mayor