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39 | Page <br /> <br />regardless of value, but is used only for items valued at $100,000 or more. <br />5. Donation - to a nonprofit organization. This method may be used for eligible surplus <br />equipment, in accordance with Council Policy. It also may be used for other surplus property <br />that is estimated to have little or no value. (See Section Below) <br />6. Scrap or Destroy – If property is determined to have only a scrap value, it may be held until <br />a sufficient quantity exists to warrant sale to a scrap yard. If a department determines that an <br />item has little or no value, the item may be discarded as trash or may be given to an outside <br />organization. The benefiting organization may use the item, obtain the item for parts, recycle <br />components, or scrap the item in an environmentally friendly method. Property will not be given <br />directly or indirectly to employees unless purchased through a public auction. Notify the Finance <br />Division to remove the item from the fixed asset system. <br />7. Dangerous or Hazardous Materials – Items that may be dangerous or hazardous may be <br />disposed of without any public notice to expedite the removal of the items from City property. <br />All disposals will be by an environmentally friendly method. <br />Minnesota State Statute 15.054 states that "property or materials owned by the state or a subdivision, <br />except real property, and not needed for public purposes, may be sold to an employee of the state or <br />the subdivision after reasonable public notice at public auction or by sealed bid if the employee is the <br />highest responsible bidder and is not directly involved in the auction or sealed bid process." (See <br />Appendix) <br /> <br />Sale at City Auction <br />Throughout the year the city collects items to be sold at an annual public auction. The listing and <br />storing of those items must be coordinated through the public works director or designee or, for <br />electronic equipment, through the IT manager. <br /> <br />A list of all items available for auction will be maintained by the public works director or designee. <br />Prior to the auction, the public works director or designee will provide the auctioneer with a <br />description and number of items to be sold and make arrangements for those items to be <br />transported. <br /> <br />An employee from the city is present the day of the auction to ensure the integrity and accuracy of <br />the auction. The auction house will forward a tabulation of the bids received along with payment. <br />The information is reviewed by the public works director or designee and then the payment is <br />forwarded to the finance department. <br /> <br />Vehicle Auction <br />The city participates in the county auctions for disposal of vehicles. In preparation for the auctions <br />the city submits a request for the number of vehicles to be sold at each of the auctions held during <br />the year. The designation of vehicles to be sold at each auction takes into consideration the need <br />for spare vehicles during the summer months. <br /> <br />Prior to each auction the city supplies the county with a list of vehicles to be auctioned. The <br />following information is supplied; vehicle, make, model, year, serial number, approximate mileage <br />and proof of a clear title. <br /> <br />The week prior to the auction all vehicles are cleaned, and all markings and equipment are <br />removed from the vehicles. The city marks vehicles with assigned numbers from the county and