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HomeMy WebLinkAboutOrdinance No. 3001-2018Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3001-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, REPEALING AND RE- ENACTING KENAI MUNICIPAL CODE SECTION 7.15 .090-SALES , SURPLUS , COMPETITIVE BIDDING TO PROVIDE ADMINISTRATIVE AUTHORITY FOR THE DISPOSAL OF CERTAIN SURPLUS OR OBSOLETE SUPPLIES, MATERIALS OR EQUIPMENT. WHEREAS, Kenai Municipal Code 7 .15 .090 provides the process for the City's disposal of surplus or obsolete goods; and, WHEREAS, the process generally requires the Council to declare every item to be obsolete or surplus before the City can dispose of it; and , WHEREAS, the City's recent experience selling obsolete and surplus items through an online auction site demonstrated that the City will likely benefit financially and save administrative time by selling obsolete or surplus items when they are no longer needed by the City as opposed to the current practice of storing items for an annual sale; and, WHEREAS, authorizing the City manager to dispose of certain obsolete or surplus goods without Council approval will increase efficiencies for the City and is intended to maximize the City's financial returns . NOW, THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Repeal and re-enactment of Section 7.15.090 of the Kenai Municipal Code: That Kenai Municipal Code, Section 7.15.090 -Sales, surplus, competitive bidding, is hereby repealed and re-enacted as follows: [7.15.090 SALES, SURPLUS, COMPETITIVE BIDDING. (A) EXCEPT AS PROVIDED IN SUBSECTION (D) NO SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, OR EQUIPMENT MAY BE SOLD (EXCEPT BY TRADING IN ON OTHER GOODS OR SERVICES) UNTIL THE COUNCIL SHALL HAVE DECLARED THEM OBSOLETE OR SURPLUS . BEFORE THE CITY MANAGER SELLS ANY SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, OR EQUIPMENT, EXCEPT AS OTHERWISE PROVIDED IN THE NEXT SECTION, HE OR SHE SHALL ADVERTISE THEM FOR SALE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE CITY OR GIVE NOTICE IN SUCH MANNER AS HE OR SHE DEEMS NECESSARY ADEQUATELY TO REACH PROSPECTIVE BUYERS TO GIVE THEM AN OPPORTUNITY TO MAKE BIDS . ALL BIDS SHALL BE SEALED AND SHALL BE OPENED IN PUBLIC AT A DESIGNATED TIME AND PLACE, EXCEPT WHEN THE SALE IS BY AUCTION OR BY AN INTERNET SALE PROCESS . New Text Underlined; [DELETED TEXT BRACKETED) Ordinance No . 3001 -2018 Page 2 of 3 (B) THE COUNCIL MAY BY RESOLUTION, INCLUDE SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE , DECLARE AND AUTHORIZE SALE OF SURPLUS OR OBSOLETE SUPPLIES , MATERIALS OR EQUIPMENT BY A BROKER IF THE NATURE OF ITEMS IS SUCH THAT SALE BY BROKER IS IN THE BEST INTEREST OF THE CITY. THE CITY MANAGER SHALL SUBMIT A WRITTEN REPORT TO THE COUNCIL OF ANY ITEM SOLD BY A BROKER INCLUDING THE COMMISSION , BU YER, AND THE TERMS AND CONDITIONS OF THE SALE. SUCH WRITTEN REPORT SHALL BE INCLUDED IN A COUNCIL PACKET WITHIN THIRTY (30) DAYS AFTER THE SALE DATE. (C) THE CITY MANAGER MAY REPEATEDLY REJECT ALL BIDS AND ADVERTISE OR GIVE NOTICE AGAIN . HE OR SHE SHALL SELL SUCH SUPPLIES , MATERIALS , OR EQUIPMENT TO THE HIGHEST RESPONSIBLE BIDDER FOR CASH . IN CASE OF A TIE, HE OR SHE MAY SELL TO EITHER OF THE BIDDERS TYING, OR MAY DIVIDE THE SALE AMONG TWO (2) OR MORE TYING, ALWAYS SELLING TO THE HIGHEST RESPONSIBLE BIDDER OR BIDDERS FOR CASH . (D) COLLECTION MATERIALS REMOVED BY THE LIBRARIAN PURSUANT TO THE LIBRARY 'S COLLECTION DEVELOPMENT POLICY MAY BE SOLD , TRADED OR OTHERWISE DISPOSED OF WITHOUT FURTHER DECLARATION BY COUNCIL AND IN ANY MANNER DEEMED APPROPRIATE BY THE LIBRARIAN AS LONG AS THE SALE , TRADE OR DISPOSAL IS IN THE BEST INTEREST OF THE LIBRARY. ALL ETHICAL AND CONFLICTS OF INTEREST PROVISIONS DESCRIBED BY CITY ORDINANCE , RESOLUTION, POLICY , OR REGULATION MUST BE FULLY COMPLIED WITH IN SUCH SALE, TRADE, OR DISPOSAL. WITHIN THIRTY (30) DAYS OF THE END OF EACH FISCAL YEAR, THE LIBRARIAN SHALL PROVIDE A FULL ACCOUNTING TO THE CITY MANAGER AND COUNCIL OF ALL MATERIALS SOLD , TRADED OR OTHERWISE DISPOSED OF THE PRIOR FISCAL YEAR] 7 .15.090-Disposal o f Surplus or Obsolete Materials and Equipment a. Except as provided in in subsection (c) below, the City Manager. may authorize the sale . trade . or disposal by other means of surplus or obsolete supplies materials and equipment no longer needed by the City with an estimated value of $50,000 or less. All sales. trades or disposals of surplus or obsolete property must be advertised in a manner reasonab ly designed to reach prospective buyers. must be made available to the public and must be disposed of in a manner reasonably designed to obtain the highest price or benefit for the City. All departments of the City shall be notified of the availability of surplus or obsolete goods at least 10 business days prior to the goods being made available for purchase. trade or transfer to a non-City entity. The City Manager must make a written report to the City Council of all surplus or obsolete goods within 30 days of sale . trade or disposal of surplus or obso lete goods . b. The sale . trade or disposal by other means of surplus or obso lete supplies ma terials and equipment no longer needed by the City with an estimated value of greater than $50.000 must be approved by resolution of the City Council. c. Collection materials removed by the Library Director pursuant to the library 's collection development policy may be sold, traded or otherw is e disposed of in any manner deemed appropriate by the Library Director as long as the sale . trade or disposa l is in the best in teres t of the library. Within thirty (30) days of the end of each fiscal year. the Library Director shall provide a full account ing to the City Manager and Council of all materials sold. traded or otherwise disposed of the prior fisca l year. New Text Underlined; [DELETED TEXT BRACKETED) Ordinance No. 3001-2018 Page 2 of 3 d. All ethical and conflicts of interest provisions provided by City ordinance. resolution. policy, or regulation must be fully complied with in all sales. trades. or disposals. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. ATTEST : BRIAN GABRiELS~MAYOR Introduced: January 17, 2018 Enacted : February 7 , 2018 Effective: March 9, 2018 New Text Underlined; [DELETED TEXT BRACKETED] 'Vtff~ «1/t/t, a PaJ'~ Ct'tj «11't/t, a ~tfl.l"e 11 210 Fidalgo Ave , Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (90 7) 283-3014 www.kena i.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager V · D . January 9, 2018 Surplus and Obsolete Goods/Ordinance No . 3001 -2018 Ordinance 3001-2018 repeals and re-enacts KMC 7.15.090 to authorize the City Manager to sell or otherwise dispose of certain obsolete and surplus goods wit hout action by Council. The City held its first sale of surplus and obsolete materials and equipment utilizing an online auction system. Consistent with many other municipalities' experiences , the results exceeded our past performance in holding an onsite physical auction . The City generally received higher values for its listed items and saved employee time and resources . Increased efficiencies are expected if the City moves to a practice of listing surplus and obsolete materials and equipment as the item s become surplus or obsolete , rathe r than holding , in ventorying , and storing the materials and equipment for a sale once a year. Under the current code, KMC 7.15.090-Sales , surplus , competitive bidding, all items (aside from library materials ) must be declared surplus or obsolete by the Council prior to sale . The administration recommend , KMC 7.15.090 be amended to allow the City Manager the authority to determine items estimated to have a va lue of $50 ,000 or less to be surplus or obsolete for the purposes of sale or disposal. As a comparison , the Kenai Peninsula Borough and Soldotna appear to have no limit on what can be administratively disposed of, Wasilla and Palmer have a $10 ,000 limit and Juneau has a $50 ,000 limit on administrative disposals . The new proposed code woul d require reasonable advertising , a public process and sale to the highest bidder. Additionally, a report would be provided to Council after each sale . You r consideration is appreciated.