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Home My WebLink About10-03-10 • CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA RESOLUTION NO. 10 - 0 3 -10 A RESOLUTION OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA, PROVIDING FOR THE DISPOSITION OF PERSONAL PROPERTY WHICH IS NO LONGER NEEDED AS A RESULT OF THE NEW CITY HALL. WHEREAS, the City of Oak Park Heights is building a new city hall; and WHEREAS, the new city hall will contain some elements of office furniture, desks, chairs, computers, cubicles and other office equipment which will replace the same items previously used in the old city hall; and WHEREAS, some of the old office furniture, desks, chairs, computers, cubicles and other office equipment ( "Personal Property ") are no longer needed for municipal purposes; and WHEREAS, the interests of the City of Oak Park Heights requires the disposition of the Personal Property by sale, donation or otherwise; and WHEREAS, the City of Oak Park Heights seeks to dispose of the Personal Property in an orderly manner and to avoid inconvenience and expense of a public sale; and • WHEREAS, Minnesota Statute Section 412.211 provides that the City of Oak Park Heights may "sell, convey, lease or otherwise dispose of the Personal Property as its interests require "; and WHEREAS, Minnesota Statute Section 471.85 provides that the City of Oak Park Heights may transfer its personal property for a nominal sum or without consideration to another public corporation for public use when duly authorized by its governing body; and WHEREAS, Minnesota Statute Section 471.64 allows the City of Oak Park Heights to contract with the United States of America or with any agency thereof, any state agency, or with any political subdivision of the state, for the disposition of its personal property without regard to competitive bidding practices. NOW THEREFORE BE IT RESOLVED, the City Council for the City of Oak Park Heights as follows: 1. The City Administrator is authorized and directed to supervise and coordinate the disposition of the Personal Property. a. The City Administrator is authorized and directed to offer and/or sell the Personal Property to other governmental entities. • 1 b. The City Administrator is authorized and directed to sell the Personal Property • to non- profit corporations including 501(c)(3) corporations. c. The City Administrator is then directed to sell the remaining Personal Property to bulk vendors. d. Finally, the City Administrator is directed to dispose of all remaining Personal Property, if any in a commercially reasonable manner, as the interests of the Ci require. Dated this 4 Day of Uayth , 2010. 4ave Mayor AT T. ri J son, City Administrator • • 2 ^ ECKBER� � LAMMER- TA RANT i ATTORNEYS AT LAW Writer's Direct Dial: Stillwater Office: e 1809 Northwestern Avenue Writ is Direct Stillwater, Minnesota 55082 Writer's E -mail: (651) 439 -2878 mvierling @eckberglammers.com . Fax (651) 439 -2923 February 26, 2010 Hudson office: 2417 Monetary Boulevard Hudson, Wisconsin 54016 (715) 386 -3733 Eric Johnson Fax (651) 439 -2923 City Administrator City Of Oak Park Heights www.eckberglammers.com 14168 Oak Park Boulevard North Oak Park Heights, MN 55082 Re: New City Hall /Disposition of Personal Property and Moveable Items - Old City Hall /Demolition Our File No.: 01501 -17435 Dear Eric: You have inquired as to legal requirements surrounding the disposition of personal property and building remnants to be sold prior to demolition of the existing City Hall. The City has requested legal advice • regardino its proposed disp osition of the old equipment. ? TndtPrstan ably, the C11W , voul like to avoid the difficulty of a public sale of the property. The City would prefer to offer the property in bulk to other governmental or public entities, non - profits and finally to bulk vendors. This proposed course of action is supported by the City's statutory authority. Accordingly, this memo will outline the statutory authority supporting the City's proposed course of action. ANALYSIS I. THE CITY HAS THE SPECIFIC STATUTORY AUTHORITY TO SELL OR DONATE ITS PERSONAL PROPERTY TO OTHER GOVERNMENTAL UNITS. Several Minnesota statutes give the City the express authority to sell or otherwise dispose of its personal property to other governmental units. The legislature has expressly given the City the authority to transfer its personal property to another public corporation for little to no consideration (money) provided the property will be used by the public and the City Council approves of the transfer. Minn. Stat. § 471.85 provides: Any county, city, town, or school district may transfer its personal property for a nominal or without consideration to another public corporation for public use when duly authorized by its governmental body. The statute, and the surrounding chapter on municipalities, does not define what constitutes a "public corporation ". However, it is reasonable to assume that any state agency or political subdivision would ECKBERG, LAMMERS, BRIGGS, WOLFF 6 VIERLING, PLLP Family Law / Divorce • Business and Commercial Law • Criminal Law Personal Injury / Wrongful Death Estate Planning / Probate • Real Estate • Land Use Law • Mediation Municipal Law Civil Litigation be included in this definition. The City should be aware that general non - profits are not considered to be public corporations. Op.Atty.Gen., 662 -i -8, July 25, 1956 (4H not a public corporation); Op.Atty.Gen. 622 -i -8, May 7, 1956 (cemetery association not a public corporation); Op.Atty.Gen. 59 -a -40, Jan. 14, 1954 (religious corporation or society not a public corporation). Pursuant to this statute, the City has the authority to transfer its personal property to other governmental entities either by sale or donation. If the City decides to sell the property to another governmental entity, the sale does not need to conform to competitive bidding requirements. Minn. Stat. § 471.64, subdivision 1, provides: Any ... city ... may enter into any contract with the United States of America or with any agency thereof, any state agency, or with any other political subdivision of the state for the purchase, lease, sale, or other acquisition or disposition of equipment, supplies, materials, or other property, including real property, without regard to statutory or charter provisions. Minn. Stat. § 471.64, Subd. 1. The Minnesota Attorney General's Office has opined that this statute allows a city to contract with other governmental units without engaging in the competitive bid process. Op. Atty. Gen. 59 -a -15, July 7, 1945. From the above statutes, it is clear that the City may sell or otherwise donate its unused personal property to another governmental entity. If the City chooses to sell the property, the sale can be for little to no money, and does not have to follow a competitive bidding process. II. THE CITY HAS GENERAL STATUTORY AUTHORITY TO SELL OR OTHERWISE DISPOSE OF PERSONAL PROPERTY "AS ITS INTERESTS REQUIRE ". There is no special statute providing the City with explicit authority to convey, sell or donate personal property to a non - profit or a bulk vendor. However, the City has general statutory authority to sell or otherwise dispose of its personal property "as its interests require." Minn. Stat. § 412.211. That statute entitled, General statutory city powers, provides: Every city shall be a municipal corporation having the powers and rights and being subject to the duties of municipal corporations at common law. Each shall have perpetual succession, may sue and be sued, may use a corporate seal, may acquire, either within or without its corporate limits, such real and personal property as the purposes of the city may require, by purchase, gift, devise, condemnation, lease or otherwise, and may hold, manage, control, sell, convey, lease, or otherwise dispose of such property as its interests require. The powers listed in this act are not exclusive and other provisions of law granting additional powers to cities or to classes of cities shall apply except where inconsistent with this chapter. Id (emphasis added). The above statute contains very broad authority allowing the City to sell or otherwise dispose of its personal property "as its interests require." Additional research of the statute was performed to see how the courts interpret the statute but no cases on point were located. There were several old Minnesota Attorney General's Opinions which seem to require the City to show that its interests require the disposition of the property as well as a finding that the property is no longer needed by the City. Despite the lack of clear guidance by the courts, the plain language of the statute gives the City very broad authority to dispose of its property so long as its interests require. In this case, the City no longer needs the personal property and does not have the time or manpower to engage in a series of public sales to members of the general public. Accordingly, the City has a reasonable basis under Minnesota Statutes to follow its plan of disposition of property by first offering the property to governmental entities, then to non - profits and then to bulk vendors. The City should try to sell the personal property to these entities for fair market value rather than merely donate the items because a donation would be more likely to be challenged. CONCLUSION The statutes expressly provide that personal property such as equipment can be sold or donated to other governmental entities without conforming to competitive bidding requirements. The statutes further provide the City with the general authority to dispose of its personal property "as its interests require." Some old Minnesota Attorney General Opinions indicate that the City should make express findings that the property is no longer needed for City business and that the City's interests require the disposition of the property. Besides this minimal caveat, the City has broad authority to pursue its intended course of action. f a very truly, . Vierling MJV /ndf