Chapter 3.55
DISPOSAL OF SURPLUS PROPERTY
Sections:
3.55.015 Declaration of surplus – Determination of value, disposition of property.
3.55.050 Call for bids – Notice.
3.55.060 Opening bids – Rejection.
3.55.070 Execution of instruments of conveyance.
3.55.075 Disposition of surplus real property for public benefit purpose pursuant to RCW 39.33.015.
3.55.080 City councilmembers and staff establishing value barred from purchasing property.
3.55.010 Authority to sell.
A. Whenever it shall appear to the city council that it is in the best interests of the City that any property, whether real, personal or mixed, belonging to the City should be sold, the city council may declare such property surplus and authorize its sale.
B. The city manager, or designee, is hereby authorized to declare surplus, and to sell by any method authorized under this chapter, City personal property, the value of which the city manager, or designee, determines to be $10,000 or less.
C. “Surplus,” as used in this chapter, is defined as any tangible, City-owned property that is no longer needed at present or in the foreseeable future, or that is no longer of value or use to the City. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 1.]
3.55.015 Declaration of surplus – Determination of value, disposition of property.
A. The city manager, or designee, may declare an item of personal property or similarly described group of items with a value of $10,000 or less surplus within the meaning of this chapter. The declaring official must document such declaration, together with a determination of value. The determined value must be the reasonable fair market value in “as is, where is” condition. The documentation shall be submitted to the city manager to evaluate the disposal request. If the request and the value are determined to be reasonable, the city manager, or designee, may sell or dispose of the surplus personal property in any commercially reasonable manner determined to be in the City’s best interest.
B. If any surplus personal property is purchased with grant funds, the city manager, or designee, shall ensure that sale or disposal of said property is consistent with any grant requirements or restrictions prior to such sale or disposal.
C. When the cost of disposing of the personal property is equal to, or exceeds, the current fair market value of the property, the city manager may authorize the donation of surplus personal property to a nonprofit charitable organization that serves the poor and/or infirm and is tax exempt under Internal Revenue Code Section 501(c)(3). [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1).]
3.55.020 Public hearing.
Prior to any sale or transfer authorized under KMC 3.55.010, the city council shall hold a public hearing on the sale or transfer if:
A. The property to be declared surplus was originally acquired for public utility purposes (RCW 35.94.040); or
B. The property is to be surplussed by means of an intergovernmental transfer of property, and the value of the property exceeds $50,000 (RCW 39.33.020). [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 2.]
3.55.030 Minimum price.
Except for property surplussed under KMC 3.55.010(B) and 3.55.015, the city council shall set a minimum price at which all surplus property may be sold. In setting the minimum price, the city council may first require that an appraisal be made. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 3.]
3.55.040 Method of sale.
Property declared surplus under this chapter may be sold upon competitive bids, on a negotiated basis, or auctioned or exchanged for goods and services, as the council may direct. If the council does not direct a method of sale, or the city manager, or designee, declares the property surplus under KMC 3.55.010(B) and 3.55.015, the city manager, or designee, shall determine the method of sale. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 4.]
3.55.050 Call for bids – Notice.
If the property is to be sold upon competitive bids, the city clerk shall give notice that the City will invite bids for purchase of the property by one publication thereof in the City’s official newspaper, posting at City Hall, and/or such other means as the council may direct, if any. The notice shall be posted and published at least 10 days before the date the bids are to be opened. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 5.]
3.55.060 Opening bids – Rejection.
The bids shall be opened in public at the time and place stated in the notice. The city council or the city manager, or designee, for property sold under KMC 3.55.010(B), may reject any or all bids, or the bid for any one or more of the parcels or items of property, real or personal, included in the aforesaid call for bids. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 6.]
3.55.070 Execution of instruments of conveyance.
Upon the council’s acceptance of an offer to purchase property surplussed under KMC 3.55.010(A) or upon the city manager’s, or designee’s, acceptance of an offer to purchase property surplussed under KMC 3.55.010(B), the city manager, or designee, is hereby authorized to cause the necessary instruments for conveyance of the property to be prepared and to execute such instruments. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 7.]
3.55.075 Disposition of surplus real property for public benefit purpose pursuant to RCW 39.33.015.
A. Policy. It is the policy of the City that surplus real property may be disposed of for affordable housing purposes as authorized by RCW 39.33.015 when the city council finds that affordable housing is needed in the City and the disposition of the surplus real property for affordable housing is in the best interests of the City and its residents.
B. Applicability. This section provides requirements and procedures for the sale, lease or other disposition of surplus real property by the City for public benefit purposes. The requirements and procedures stated in this section provide a discretionary alternative method for doing the things authorized in this section, and are an alternative to the requirements and procedures for the disposition of surplus property stated in other sections of this chapter. This section is not applicable to surplus, sale, transfer, lease, or other disposition of City real property for purposes other than affordable housing pursuant to RCW 39.33.015.
C. Definitions. The definitions in RCW 39.33.015 as now existing and as may be amended in the future are adopted for purposes of this section.
D. Surplus Real Property Resolution.
1. The city council shall pass a resolution which clearly states that the real property is surplus to the City’s needs and that the property shall be disposed of for a public benefit purpose pursuant to RCW 39.33.015. The resolution shall state the following information:
a. A description of the real property parcel size, general location, legal description and King County assessor’s tax parcel number;
b. A description of the circumstances under which the property was obtained by the City;
c. A statement identifying the fund account to which proceeds from its sale, if any, should be credited;
d. A summary of the history of municipal use, if any, or other uses for which the real property might be held;
e. The assessor’s value of the real property;
f. A description of how the real property should be disposed;
g. A summary of the easements, covenants and/or deed restrictions that will be imposed on the real property as part of the disposition; and
h. A determination of the minimum sale, lease or other disposition price, or if the sale, lease or other disposition is for no cost, a statement that indicates that fact.
2. No appraisal or valuation information is required.
E. Disposition Procedure.
1. Disposition of surplus real property for public benefit purposes of providing affordable housing under this section may be at no cost, a long-term lease, or an amount determined to be appropriate by the city council, even if that amount is less than the appraised, assessed, or fair market value of the property.
2. Disposition of surplus real property under this section may be by direct negotiation with a nonprofit, Section 501(c)(3) entity, or similar entity that provides affordable housing for City residents. In the alternative, if the city council deems it appropriate, disposition of surplus real property may be accomplished through an RFP process, sealed bid, advertisement, or auction.
3. In all cases, the deed, lease or other instrument transferring or conveying the real property shall include a covenant or other requirement that the property shall be used for a designated public benefit purpose and remedies that apply in the event that the recipient of the property, or the recipient’s successor in interest, fails or ceases to use the property for the designated public benefit purpose.
4. The recipient of the surplus real property shall pay all costs of the transfer, including but not limited to appraisal costs, title fees, excise tax, recording fees and other closing costs, and any debt service or other liabilities associated with the surplus real property. [Ord. 22-0557 § 1 (Exh. A).]
3.55.080 City councilmembers and staff establishing value barred from purchasing property.
Members of the city council may not purchase property from the City, regardless of the value. Any City employee that had a role in establishing the value of surplus personal property may not purchase said property. Otherwise, City employees may purchase City property; provided, employees shall not be given preferential treatment in the terms or conditions of the sale. [Ord. 22-0557 § 1 (Exh. A); Ord. 19-0491 § 1 (Exh. 1); Ord. 01-0121 § 8.]