CR 94-159 Disposal Personal Property
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August 30, 1994 ~ Council Report 94-159
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DISPOSAL OF PERSONAL OR SURPLUS PROPERTY
Proposed Action
Staff recommends that the Council approve the following motion: Move that the Hopkins City
Council adopt Ordinance 94-743 for first readinQ.
Adoption of this motion will allow the City to use a variety of methods for the disposal of personal
or surplus property.
Overview
Currently, Section 305 of the City Code requires a public auction to dispose of personal or surplus
property. The City has experienced problems with this approach. Auctions occasionally cost
more money to conduct than is brought in by the sales. Auctions are a poor method of disposing
of such equipment as computers and printers. The City is also required to store property such as
bicycles for up to two years in order to have enough to warrant an auction.
. The proposed ordinance would allow the City to dispose of personal or surplus property using the
following methods:
1. Public auction.
2. Direct sale, i.e. place an advertisement in the paper offering the items for sale.
3. Donation to a nonprofit or other governmental unit.
4. Disposal as refuse.
Section 305 does not involve the disposition of real property such as land or buildings.
Primary Issues to Consider
. Does the proposed ordinance follow state law and the City Charter? Minnesota Statute
471.195 expressly authorizes disposal through auction or sale. It also contains language
allowing municipalities broad powers to dispose of property. The City Charter does not
address the disposal of such property.
Supportina Information
. Ordinance number 94-743
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CITY OF HOPKINS COUNTY OF HENNEPIN
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ORDINANCE NO. 94-743
ORDINANCE AMENDING SECTION 305 OF THE
HOPKINS CITY CODE RELATING TO
THE DISPOSAL OF UNCLAIMED AND SURPLUS PROPERTY
The City Council of the City of Hopkins does hereby ordain:
SECTION l. That the Hopkins City Code Section 305 lS amended to
read as follows:
305.0l. Personal property. When personal property has lawfully
come into the possession of the city in the course of its municipal
operation, including the seizure or confiscation thereof by the
police or by any other officer or employee of the city, and the
property has remained unclaimed by the owner and has been in the
possession of the city continuously for a period of 60 days, the
city council manager may order the property to be ::wld to thc
. highe8t bidder ~t public ~uction disposed of.
305.03 Surplus Property. When city equipment, furniture,
vehicles, etc. have been replaced or are no longer in working
condition, the city manager may declare this property to be
surplus.
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; or 4) in the
case of damaged property or property which has no significant
value, the property may be recycled or disposed of as refuse.
305.07. Notice of auction or sale. If the property lS going to
be sold, either by auction or directly, an advertisement must be
placed T'dO ....eeko' published notice oh~ll be given in the official
newspaper of the city th~t the property '.;ill be oold ~t public
Juction. The sale shall be held not less than six days following
the date of the 8ccond publication of the notice.
305.09. Content of notice. The notice shall contain: (1 ) a
general description of the items of property to be sold; (2) the
general manner under which the property came into the possession of
. the city; (3) whether the property will be auctioned or sold
directly; and (4 ) the time and place of the auction or sale.
305.11. Sale. The auction or sale shall be conducted by the
e manager or his or her designee.
305.13. Postponement. The auction or sale may be postponed from
time to time by inserting a notice of such postponement as soon as
practicable in the newspaper In which the original notice was
published o.nd continuing h'hereby publicLltion until the time to
',vhich the oo.lc io pO:Jtponed.
305.15. Certificate of sale. When the sale of the property is
made, the manager shall deliver to the purchaser a bill of sale
containing a description of the property sold and the price paid
for each item.
305.17. Proceeds of sale. Proceeds of the sale shall be
deposited by the manager in the gcnero.l appropriate fund of the
city. Within six months from the date of the sale the former owner
of any item of such property may make application to the city for
payment of the proceeds of the sale and after satisfactory proof of
ownership furnished to the city within six months from the date of
sale, the city council shall order the sale price to be paid to the
former owner, after deducting therefrom the actual or reasonable
cost and expenses necessarily expended by the city in the conduct
of the sale and the storage and care of the property.
. 305.19. Exceptions. This section does not apply to dogs, cats,
or other domestic animals impounded pursuant to the statute or this
code. This section also does not apply to real property, either
land or buildings.
SECTION 2. The effective date of this ordinance shall be twenty
days after publication.
First Reading: September 6, 1994
Second Reading: September 20, 1994
Date of Publication: September 28, 1994
Effective Date of Ordinance: October 19, 1994
Charles D. Redepenning, Mayor
ATTEST:
James A. Genellie, City Clerk
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