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40 | Page <br /> <br />checks with administration to assure the vehicles are insured for transport. The day prior to the <br />auction, the city delivers the vehicles to the auction site with all paperwork and titles; and registers <br />correct mileage on the titles and sales receipts. <br /> <br />On the day of the auction the city is required to, in order to participate in the auction, provide two <br />employees; one to assist the auctioneer and a spotter/runner. <br /> <br />Shortly after the auction the county sends out a statement which breaks down the amount <br />received for each vehicle auctioned and the amount of the commission kept by the county. A copy <br />of this statement is sent to the finance department along with a finance provided fixed asset form <br />indicating that the asset is no longer in the city’s fleet. <br /> <br />Electronic Bidding <br />Cities have authority for the following procedures related to purchases and sales: <br /> <br />1) Reverse Auction Purchases—Minn. Stat. § 471.345, subd. 16 <br />• A city may contract to purchase supplies, materials and equipment (but not services), <br />using an electronic purchasing process in which vendors compete to provide the supplies, <br />materials, or equipment at the lowest price in an open and interactive environment. <br /> <br />2) Electronic Sales - Minn. Stat. § 471.345, subd. 17 <br />• MSS § 471.345 sub 17 states that “a city may contract to sell supplies, materials, and <br />equipment which is surplus, obsolete, or used, using an electronic selling process in which <br />purchasers compete to purchase the items at the highest purchase price in an open and <br />interactive environment.” <br /> <br />Trade-ins <br />The City Council must approve the disposal of equipment via trade-in (put toward the purchase of <br />new equipment), just as it approves a regular disposal. A trade-in offer may be requested from the <br />vendors submitting quotes/bids on the new equipment. A trade-in may be utilized when the trade- <br />in value is determined to be advantageous to the purchase price or a better value than other types <br />of disposal. This approval can be done as part of the approval of the purchase of new equipment <br />(if the purchase is over $50,000). Even if the new purchase is under $50,000 (and doesn’t require <br />Council approval), the trade-in disposal still must be approved by the Council. <br /> <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 <br />#3) above. Sealed bids or quotes are not required. Council approval of the disposal (item #1 above) <br />is always required. Council approval of the terms of the disposal (item #2 above) is required only if <br />consideration is over $10,000. The council may approve both the disposal and disposal terms in one <br />action. If there is no consideration or consideration is under $10,000, the City Manager may approve <br />the terms of the disposal. <br /> <br />Additional Disposal Information: <br />• As is <br />A donation of surplus equipment is made "as is" with no warranty, guarantee or representation of <br />any kind, express or implied, as to the condition, utility, or usability of the surplus equipment