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14 <br />LA515\1\1093668.v1 <br />3.Proper Municipal Sale Contract <br />Just as with purchasing,making a sale is considered entering into a contract.After the Council has <br />declared the property as surplus,and approved its disposal,the City Administrator,or designee,is <br />authorized to dispose of the property using one of the following methods: <br />Assets under $25,000 <br />If the value of the surplus property is estimated to be $25,000 or less,the City Administrator,or designee, <br />may sell it either in the open market,by auction,or by obtaining two market comparisons,so far as <br />practical.If the surplus property is sold based upon comparisons,it/they shall be kept on file for a period <br />of at least one year after receipt. <br />Assets between $25,000 - $175,000 <br />If the value of the surplus property is estimated to exceed $25,000 but not to exceed $175,000,the City <br />Administrator,or designee,may sell the property upon sealed bids or by direct negotiation,by obtaining <br />two or more market comparisons for the sale,when possible,or by auction,subject to a minimum of 2 <br />bidders or meeting an auction reserve as determined by City Council All comparisons obtained shall be <br />kept on file for a period of at least one year after their receipt. <br />Assets over $175,000 <br />If the value of the surplus property is estimated to exceed $175,000 ),the City Administrator,or designee, <br />shall solicit sealed bids by public notice in the manner and subject to the requirements of the law <br />governing contracts by the City. <br />Government to Government Sales <br />The City may transfer real and personal property to another governmental entity for nominal or no <br />consideration and without following the process set out under “Proper Municipal Sale Contract”(Item #3 <br />above).Sealed bids or quotes are not required.Council approval of the disposal (Item #1 above)and of the <br />terms of the disposal (Item #2 above)is always required.The Council may approve both the disposal and <br />disposal terms in one action. <br />Trade-ins <br />The City Council must approve the disposal of equipment via trade-in to utilize toward the purchase of new <br />equipment,just as it approves a regular disposal.This approval may be done as part of the approval of the <br />purchase of new equipment. <br />Electronic Sales <br />Minn.Stat.471.345,subd.17 states that “a city may contract to sell supplies,materials,and equipment which <br />is surplus,obsolete,or used,using an electronic selling process in which purchasers compete to purchase <br />the items at the highest purchase price in an open and interactive environment.” <br />Donations <br />The City Council approved a Policy for Donation of Surplus Equipment to a Nonprofit Organization on <br />February 7,2018,and as such,said policy will govern the rules for donations for surplus equipment to a <br />nonprofit organization.