04-10-2019 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 Expenditures, Purchasing, and Contracts Chapter 22 | Page 19 Some official, preferably the city purchasing agent, should maintain a list of all surplus property, sell unneeded items, and promote interdepartmental sharing of equipment whenever possible. This procedure helps eliminate unnecessary (and costly) duplications of city-owned equipment. B. Restricted sales Minn. Stat. § 471.345. LMC information memo, Competitive Bidding Requirements in Cities. In some cases, cities must follow special procedures before selling property or equipment. For example, if the expected selling price of a piece of equipment exceeds $175,000, the city generally must use the competitive bidding process. Home rule charter cities may have additional requirements within their charters. Minn. Stat. § 15.054. LMC information memo, Official Conflict of Interest. Cities generally cannot sell government property to city officers or employees. A limited exception allows cities to sell property to city employees (but not to city officers) if the sale is made by sealed bids or through an auction and the employee has no involvement in the process. LMC information memo, Purchase and Sale of Real Property. Minn. Stat. § 462.356, subd. 2. Competitive bidding usually is not required when selling real estate. In certain instances, however, cities may have other procedural requirements to follow. For example, if the city has a comprehensive plan, it typically must notify the planning commission and wait for its comment before selling city-owned land. C. Sales to other government agencies Minn. Stat. § 471.64, subd. 1. A.G. Op. 707a (Mar. 5, 1986). A city need not comply with competitive bidding requirements when selling property, services, or equipment to the national government, the state, or any political subdivision of the state. D. Electronic sales of surplus supplies, material, and equipment Minn. Stat. § 471.345, subd. 17. Regardless of value, cities may sell surplus supplies, materials, and equipment using an electronic selling process where purchasers compete for the highest price in an open and interactive environment. E. Donations of surplus equipment Minn. Stat. § 471.3459. Donation of Surplus City Equipment to a Nonprofit Organization, LMC Model Policy. In 2016, the Minnesota Legislature passed a new law authorizing a “local government,” including statutory and home rule charter cities, to donate “surplus equipment” to a “nonprofit organization.”