From
A. Bryce Davis, Purchasing Manager
Title
Ordinance amending the City of Grand Prairie Code of Ordinances, Chapter 11, Finance, Records and Property, Section 11-16: Disposition of pistols and illegal weapons by police department,” Section 11-17: “Sale of Unclaimed and Surplus Property,” Section 11-17.1: Unclaimed and abandoned property-Definitions,” and Section 11-17.2: “Same- Sale of” of the Grand Prairie Code of Ordinances addressing updates to disposition of property by the Police Department, and sale of unclaimed and surplus property
Presenter
A. Bryce Davis, Purchasing Manager
Recommended Action
Approve
Analysis
Currently the City is in the practice of publicly auctioning all of its excess, obsolete, unclaimed, and surplus property in accordance with Chapter 11, Section 16, 17, 17.1 and 17.2 of the Grand Prairie Code of Ordinances; this process is cumbersome for staff to manage often failing to achieve market value for the items being auctioned, as well as is ill-suited to properly dispose of certain articles of property such as Police pistols and long barreled firearms, functioning IT automation equipment, and end-of-service City vehicles--all of which may have significant value or other strategic reasons for which public auction may not be advisable or truly representative of the best value to the City.
The proposed revisions to section 16 include: referencing the Texas Code of Criminal Procedure; changing all references of "pistols" to the more generalized "prohibited weapons" or "firearms"; and updating language for Police retiree's to purchase one firearm previously issued to that individual upon retirement.
The proposed revisions to section 17 of this ordinance allows at the discretion of the Chief Financial Officer or her designee additional methods of sale to maximize the value to the City and is congruent with best practices across the DFW metroplex. The additional methods of sale include but are not limited to: competitive sealed proposals, public auction, trade-in's for new property of the same general type, direct sales if the fair market value is known, recycling for scrap value, and contracting with third parties specializing in the resale of used property.
Redlined copies showing the edits are included with this communication.
This action would allow the City to process surplus property more strategically, and choose whichever method of sale would net the best value to the City.
Financial Consideration
None
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, AMENDING THE GRAND PRAIRIE CODE OF ORDINANCES, CHAPTER 11 FINANCE, RECORDS AND PROPERTY, SECTION 11-16: Disposition of pistols and illegal weapons by police department,” Section 11-17: “SALE OF UNCLAIMED AND SURPLUS PROPERTY,” Section 11-17.1: Unclaimed and abandoned property-Definitions,” and Section 11-17.2: “Same- Sale of” OF THE CODE OF ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A CUMULATIVE CLAUSE, AND A SAVINGS CLAUSE; AND TO BECOME EFFECTIVE UPON PASSAGE AND APPROVAL.
WHEREAS, the City Council is empowered to establish regulations for the disposal of certain types of city property; and
WHEREAS, revisions to these sections of the Code of Ordinances would help to provide additional opportunities for the City to obtain the best price in selling surplus or obsolete property; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. That Section 11-16 of the Code of Ordinances is hereby repealed and amended to read in its entirety as follows:
Sec. 11-16. - Disposition of weapons by Police Department.
(1) Prohibited Weapons.
(a) Prohibited weapons as defined by the Texas Penal Code, which have been ordered destroyed by a court of competent jurisdiction pursuant to Code of Criminal Procedure Art. 18.18 shall be destroyed in the presence of two (2) police officers of the rank of lieutenant or higher, and a representative of the city council or designee of the city manager, who shall make a report under oath to the city council, listing the time, date, place and manner of destruction.
(b) Prohibited weapons which have been forfeited to the Grand Prairie Police Department by a court of competent jurisdiction pursuant to Code of Criminal Procedure Art. 18.18 may be destroyed as provided in subsection (a) or, if determined by the Chief of Police to be serviceable and of value to the Police Department, utilized by the Grand Prairie Police Department in accordance with established policy.
(c) Weapons which are listed as prohibited weapons in the Texas Penal Code and have been classified as “relic” or “curio” by the United States Department of Justice may be advertised as such and sold at public auction as provided by law. The Chief of Police shall make the determination as to whether selling the item at public auction or another form of lawful disposition provided by this Chapter is in the best interest of the community.
(2) Retiree Firearm Purchase. In accordance with Texas Government Code §614.051, an honorably retired Grand Prairie peace officer may purchase one (1) firearm previously issued to that individual by the City if the firearm is not a prohibited weapon as defined by the Texas Penal Code. Such firearm will be purchased at the market value which will be determined based on the age of the firearm, the original cost, and the depreciation of such firearm based on length of service of the firearm. The department shall establish rules for valuing such firearms or shall periodically have such firearms valued by a qualified expert designated by the Chief of Police.
(3) For the purposes of this section, an honorably retired peace officer is a peace officer who retires or voluntarily terminates employment with the Grand Prairie Police Department while in good standing and has served as a peace officer with the Grand Prairie Police Department for at least five years. It shall be within the discretion of the Chief of Police as to whether the officer terminates employment while in good standing.
(4) This section shall be administered in accordance with the Texas Code of Criminal Procedure and other applicable state and federal law, such that if any provision of this section conflicts with federal or state law, the federal or state law shall prevail.
SECTION 2. That Section 11-17 of the Code of Ordinances is hereby repealed and amended to read in its entirety as follows:
Sec. 11-17. - Sale of unclaimed and surplus property.
(a) Authority to sell; deposit of cash.
(1) The following property may be sold by the city in the manner provided in this article:
a. Abandoned, stolen or recovered property, except motor vehicles, that remains unclaimed with the city for sixty (60) days, whether or not the owner is known;
b. Abandoned, stolen, or recovered motor vehicles that remain unclaimed with the city for thirty (30) days, whether or not the owner is known; and
c. Personal property owned by the city that has been declared surplus, obsolete, worn out, or useless by the head of a division, and that is no longer needed for public use.
(2) Items of personal property in which its sale is restricted by criminal law, are not subject to the provisions of this section.
(3) Cash money that is abandoned, stolen, or recovered, that remains unclaimed with the police department for sixty (60) days, and that is not being held for evidence, whether or not the owner is known, shall be deposited in the general fund of the city unless the money is of collector quality. Money of collector quality may be sold as other personal property.
(b) Delivery of unclaimed property to Chief Financial Officer; use for City purposes.
(1) The Chief of Police or the division head holding property shall give the Chief Financial Officer of the city a list of all unclaimed property subject to sale under this article and shall deliver the listed property, except motor vehicles, to the Chief Financial Officer before the date of sale. The Chief Financial Officer shall give the Chief of Police or other division head a receipt which indicates in detail all property delivered. The Chief of Police shall retain custody of motor vehicles until a sale is made.
(2) If in reviewing the list of unclaimed property subject to sale, the Chief Financial Officer determines that certain items of property could be used by the city, he may recommend to the city manager that the items be used for city purposes rather than sold. If the City Manager believes that it is in the best interests of the city, he may authorize the Chief Financial Officer to remove specific items from the list of property subject to sale and to convert the items to use for city purposes.
(c) Method of sale.
(1) The Chief Financial Officer or his/her designee shall sell unclaimed property and surplus, obsolete, worn out, or useless property using his best efforts, consistent with state law and this section, to get the highest possible price, in a manner which includes, but is not limited to:
a. sale to the highest bidder, by public or online auction, or by accepting sealed bids;
b. offering the property as a trade-in for new property of the same general type;
c. contracting with a third party to sell the property to purchasers, if the fair market value of the property is readily determinable, using market research or previous sales prices;
d. direct sales to purchasers, if the fair market value of the property is readily determinable, using market research or previous sales prices;
e. in the case of obsolete, worn out, or useless property, selling the property for its scrap or recycling value, if the Chief Financial Officer or designee determines that this is the manner in which to obtain the highest price for the property; or
f. in any other manner that the Chief Financial Officer or designee determines to be a lawful and effective way to obtain the highest price for the property.
(2) The property may be auctioned, each piece individually or in assembled lots, whichever the Chief Financial Officer determines will bring the best price obtainable, except for motor vehicles which must be sold individually. If in the opinion of the Chief Financial Officer the highest bid on a particular item is not sufficient, he or she may refuse the bid and hold the item for sale at another time.
(3) The Chief Financial Officer at his/her discretion may accept sealed bids for goods or services instead of or in addition to sealed bids for cash in exchange for certain surplus, obsolete, worn out, or useless property. Only goods or services which are needed for normal city operations which the city would otherwise have to procure may be accepted. The equivalent cash value as determined by the Chief Financial Officer of goods or services offered in a sealed bid will be used in evaluating bids to determine the highest one.
(4) If the Chief Financial Officer receives a group of ten (10) or more identical items for sale, he or she may, at his/her discretion, research the auction price of identical items previously sold in the last twelve (12) months or sell a few of the current items at public auction to obtain an average price. The average price must be comprised of the average auction sale price of no less than three (3) identical items within the last twelve (12) months. He or she may then advertise in the official newspaper of the city and sell the items in any manner listed in Section 1, at a price not less than the average price obtained for the auctioned items.
(5) When sale is to be by acceptance of sealed bids, the bids must remain in the office of the city secretary for public inspection at least forty-eight (48) hours after the bids are opened.
(6) If the highest bid for property is fifty thousand ($50,000) or less, the property may be sold to the highest bidder by the Chief Financial Officer subject to the approval of the city manager. If the highest bid for property is more than fifty thousand dollars ($50,000), the sale to the highest bidder must be confirmed by the City Council.
(d) Time and place of sale; notice.
(1) After determining the time and place for a public auction, acceptance of sealed bids, or sale of identical items, the Chief Financial Officer shall give notice of the auction, acceptance, or sale, by:
a. Advertising in the official newspaper of the city on two (2) separate occasions that are separated by at least two (2) days minimum; and
b. Sending by registered mail to the last known address of the owner of unclaimed property, if the name of the owner is known, fourteen (14) days before the date of auction, acceptance, or beginning of sale.
(2) The notice must contain the time and place of auction, acceptance, or sale and a list of the property to be sold.
(e) Exception, library books. Surplus, obsolete, worn out or useless library books may be disposed of as provided in this section or by any other method authorized by the City Council; provided however, records shall be kept by the librarian in the form required by the Chief Financial Officer and turned over to the Chief Financial Officer after disposal.
(f) Records.
(1) The Chief Financial Officer shall keep accurate records of all sales containing:
a. A descriptive list of items sold;
b. The time, place, and method of sale; and
c. The price paid for the items.
(2) The Chief Financial Officer shall keep sales tickets covering each transaction for thirty (30) months, at which time they may be destroyed.
(g) Sale of surplus property to governmental entities. Upon the determination by the City Manager that surplus personal property is no longer needed by the City, said personal property may be conveyed through sale to any other governmental entity for further public use. Any sale of personal property under this section shall never be for less than the fair value of the City’s interest in such property.
(h) Disposal of surplus City property having no or negative monetary or other value to the city.
(1) If, in reviewing the list of surplus city property subject to sale, the Chief Financial Officer or designee determines that the property in question is not considered in good working order and/or has a value of less than $50, and/or the cost to sell the property will exceed that amount that will be received from the sale, then the Chief Financial Officer may:
a. dispose of the property at the landfill;
b. donate it to another governmental entity, a charitable corporation, an educational institution or religious institution; or
c. dispose of the property in any way the Chief Financial Officer or designee deems appropriate and/or in the best interest of the City.
(2) If property is to be donated, then the cost of selling the property, including temporary storage, transportation, or repairs, and the estimated sales value of the property must be documented by authoritative, independent sources.
(3) An entity accepting donated property must take it as is and provide transportation.
(i) Disposition of trained police and fire canines. Upon the determination by a veterinarian that a police or fire canine should be retired because of age, disabilities, or illnesses the canine may be retired by the chief of police or fire. The chief is authorized to sell the canine to the prior handler for one dollar ($1.00). A canine that can no longer function for the City of Grand Prairie, but can do limited police or fire work, may be retired at the discretion of the chief and may be donated to another public safety agency at no cost to the city.
SECTION 3. That Section 11-17.1 of the Code of Ordinances is hereby repealed and amended to read in its entirety as follows:
Sec. 11-17.1. - Unclaimed and abandoned property-Definitions.
(a) For purposes of Sections 11-17, 11-17.1, and 11-17.2, the term "purchasing agent" shall mean the person or persons primarily responsible for making purchases on behalf of the City. The City Manager shall designate the purchasing agent.
(b) For purposes of Sections 11-17, 11-17.1, and 11-17.2, the term "unclaimed and abandoned property" shall mean all personal property which has been seized by members of the police department pursuant to the exercise of their duties; provided, however, the term "unclaimed and abandoned property" does not include alcoholic products, property which is being held as evidence to be used in a pending case, property which has been ordered destroyed or returned to the person entitled to possession, gambling paraphernalia or proceeds, prohibited weapons, criminal instruments or other contraband, motor vehicles, firearms seized pursuant to Texas Health and Safety Code §573.001, or property which has been returned to its owner.
(c) For purposes of Section 11-17.2, the term “property held as evidence” means property related to a charge that has been filed or to a matter that is being investigated for the filing of a charge.
SECTION 4. That Section 11-17.2 of the Code of Ordinances is hereby repealed and amended to read in its entirety as follows:
Sec. 11-17.2. - Same-Sale of.
(a) In compliance with Code of Criminal Procedure Art. 18.17, all unclaimed or abandoned personal property which has remained unclaimed for a period of thirty (30) days with the police department shall be delivered for sale to the purchasing agent or his designee, who shall then institute the process called for below.
(b) In the event that the owner of the property is known, the purchasing agent or his designee shall cause to be mailed a notice to the last known address of the owner of the property. The notice shall be sent by certified mail and shall contain the following information:
(1) A description of the property;
(2) The name and business address of the person responsible for holding the property;
(3) State that if the owner does not claim the property within ninety (90) days from the date of the notice, the property will be sold and the proceeds of the sale, after deducting the reasonable expenses of keeping and storing the property and the costs of the sale, will be placed in the city's bank account.
(c) If the owner of the property is unknown or if the address of the owner is unknown and the property has a fair market value of at least $500, the purchasing agent or his designee shall cause a notice to be published once in a paper of general circulation within the city. The notice shall contain:
(1) A description of the property;
(2) The name of the owner if known;
(3) The name and business address of the person holding the property;
(4) State that if the owner does not claim such property within ninety (90) days from the date of the publication of the notice, the property will be sold and the proceeds of the sale, after deducting the reasonable expenses of keeping and storing the property and the costs of the sale, will be placed in the city's bank account.
(d) The sale of all property with a fair market value of at least $500 pursuant to the provisions of this section shall be preceded by a notice published at least fourteen (14) days prior to the date of the sale in a newspaper of general circulation in the city. The notice shall state:
(1) A description of the property;
(2) The name of the owner of the property if known;
(3) The time, date and place of the sale.
If the purchasing agent considers any bid insufficient on the property subject to the sale, the purchasing agent may, at his discretion, decline the bid and reoffer the property for sale on a different date so long as the fourteen (14) day notice provision contained in this subsection has been met in time for the second sale.
(e) All receipts or records of any sale of abandoned or unclaimed property are to be delivered by the purchasing agent or his designee to the Chief Financial Officer within seventy-two (72) hours of the sale of the abandoned or unclaimed property.
(f) The real owner of any property sold shall have the right to file a claim for the proceeds of the sale with the City Council within 30 days from the date the property is disposed of. If the claim is allowed by the City Council, the purchasing agent shall pay to the owner of the property all funds which were placed in the city's bank account as proceeds from the sale of the specific piece of property. The City Council shall have ninety (90) days from the date that the claim was filed to either allow or deny the claim. In the event that the City Council has not acted on the claim within ninety (90) days of the date that the claim was filed, the claim is deemed denied. Should the claim be denied, the claimant may sue the City in a court of competent jurisdiction to recover the proceeds.
(g) If the provisions of this section have been complied with and the property is scheduled for sale, the police department may request to have the property converted to use. The police department shall return the property to the purchasing agent for sale when it has finished with its use of the property.
(h) If the unclaimed or abandoned property is money, the purchasing agent may, after giving the notice required by subsections (b) and (c) deposit the money in the treasury of the City without conducting the sale as required by subsection (d).
SECTION 5. Severability.
If any article, section, sub-section, sentence or phrase of this Ordinance should be held to be invalid for any reason whatsoever, such invalidity shall not affect the remaining portions of this Ordinance which shall remain in full force and effect and to this end the provisions of this Ordinance are declared to be severable.
SECTION 6. Cumulative Clause.
All ordinances or parts of ordinances not consistent or conflicting with the provisions of this Ordinance are hereby repealed. Provided that such repeal shall be only to the extent of such inconsistency and in all other respects this Ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered in this Ordinance.
SECTION 7. Effective Date.
This ordinance shall become effective from and after its passage as provided by law.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, this the 11th day of December, 2018.