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Res 11-602 RESOLUTION NO. 11 -602 A RESOLUTION of the City Council of the City of Federal Way, Washington, Relating to Procedures for the Disposal of Surplus Property and Repealing Resolution Nos. 93 -156, 96 -227 and 97 -256. WHEREAS, effective November 2010, the form of government changed to a Mayor - Council form pursuant to RCW 35A.12. et seq.; and WHEREAS, Resolution Nos. 93 -156, 96 -227 and 97 -256 need to be repealed because as of November 2010, the position of city manager no longer exists, and the elected Mayor is the Chief Executive Officer of the City; and WHEREAS, Resolution No. 93 -156 set forth the original policy of the City Council regarding surplus property, which was amended by Resolution Nos. 96 -227 (created exemption relating to transfers of surplus property to other governmental entities) and 97 -256 (applied revenues collected from sale of surplus park real property to the Park Acquisition CIP Fund); and WHEREAS, this new resolution will consolidate all previous amendments to the City's policy regarding the disposal of surplus property; and WHEREAS, the City Council desires to continue the consistent policy for the disposal of surplus property; and WHEREAS, it is in the best interest of the City that all decisions regarding the disposition of property should take into account all potential public uses of city -owned property so as to service City policies and interests, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY RESOLVES AS FOLLOWS: Resolution No. 11 -602 Page 1 of 5 Section 1. City Property Defined. All equipment, furniture, materials or property of any kind, which was procured with City funds or which was donated, contributed and/or bequeathed to the City and accepted by it, shall be considered City property. Section 2. Property Management Function Created. There shall be created a function of "Property Management" to be performed by the Mayor or designee. The Mayor or designee shall oversee and coordinate all appropriate non -real property of the City to be declared surplus, in keeping with this policy. Section 3. Internal Department Notification. Whenever a department determines that any property has become excess to its current needs, the department shall notify other departments of the availability of surplus property for their use. Section 4. Value to be Determined. If no department has need for property, other than real property, which has been declared surplus, the Mayor or Property Management designee shall establish the estimated fair market value of the property by consulting with vendors in the area who deal in similar items. If no department has a use for any real property managed by a department and sought to be declared surplus, that department director shall determine the fair market value by use of an appraisal. Section 5. City Council Approval. City Council approval is required for the sale of any item of City property where the estimated fair market value is over Five Thousand Dollars ($5,000.00) and the procedure described in Section 6 shall be followed. Section 6. Public Notice and Hearing. Concurrent with consideration of its approval of disposing of surplus property with an estimated value of more that Five Thousand Dollars Resolution No. 11 -602 Page 2 of 5 ($5,000.00), the City Council shall hold a public hearing. At least ten (10) days but not more than twenty -five (25) days prior to such hearing, public notice of the hearing date, time and place shall be published in at least one newspaper of general circulation in the area where the property is located. If real property is involved, the public notice shall identify the property using a description which can easily be understood by the public, and the public notice shall also describe the proposed use of the lands involved. Section 7. Competitive Sale. All surplus City property will be sold by means most advantageous to the City. Such means may include, but are not limited to, negotiated sales at fair market value, sealed bids, and/or auction. Section 8. Revenues to be Deposited. The revenue received from the sale of non -real property declared as surplus shall be deposited in a fund designated by the Finance Director. The revenue received from the sale of surplus City real property, other than parks real property, shall be deposited in a fund designated by the Finance Director. Revenues collected from the sale of surplus real property used for public park purposes, including open space, shall be deposited into a Park Acquisition Capitol Improvement Project Fund, which funds shall be used for one of the following two purposes: 1. The purchase of additional public parks; or 2. The reduction of existing debt service covering existing park real property. Section 9. Participating Employees Prohibited from Purchasing. No employee of the City or any subdivision thereof, who participated in declaring City property surplus or establishing fair market value for purposes of sale, shall be allowed to purchase or otherwise acquire the property. Resolution No. 11 -602 Page 3 of 5 Section 10. Certain Properties Exempted. No City property originally acquired for public utility purposes shall be leased, sold or conveyed unless the requirements of RCW 39.94.040, as it now exists or as it may hereafter be amended, have been met. All dispositions of City right -of -way property declared surplus by reason of petition for street vacation shall meet the requirements of Chapter 4.20 FWRC and RCW 35.79.030, as they now exist or may hereafter be amended. In addition, the provisions of this Resolution do not apply to the following: 1. Unclaimed property disposed of by the City's law enforcement agency pursuant to Chapter 63.32 RCW, as it now exists or as it may hereafter be amended; 2. Property which has been seized as a result of drug forfeiture laws pursuant to Chapter 69.50 RCW, as it now exists or as it may hereafter be amended. 3. Transfers of real or personal property between the City and the State of Washington or other political subdivisions of the State, as allowed by RCW 39.33.010, as it now exists or as it may hereafter be amended; provided, however, that such transfer has first been approved by the City Council. Section 11. Severability. If any section, sentence, clause or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this resolution. Section 12. Ratification. Any act consistent with the authority and prior to the effective date of the resolution is hereby ratified and affirmed. Section 13. Corrections. The City Clerk and the codifiers of this resolution are authorized to make necessary corrections to this resolution including, but not limited to, the correction of Resolution No. 11 -602 Page 4 of 5 scrivener /clerical errors, references, resolution numbering, section/subsection numbers and any references thereto. Section 15. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this 1st day of March, 2011. CITY OF FEDERAL WAY ■4 PL--e MAYOR, S ' PRIEST ATTEST: (JVAO-i/ ( C CITY CLERK, CAROL M C ILLY CMC APP VED AS TO FORM: CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: 2/22/2011 PASSED BY THE CITY COUNCIL: 3/01/2011 RESOLUTION NO.: 11 -602 Resolution No. 11 -602 Page 5 of 5