Agenda - 08-18-2009 - 6c - Laserfiche WebLink

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Divestiture Procedures Disposal of public assets is prescribed specifically by law [G.S. 160A, Article 12]. First, the property must be declared as surplus by the governing board. Real property must always be sold using a competitive procedure. Competitive procedures include: • sealed bid [G.S. 160A-268] • negotiated offer and upset bid [G.S. 160A-269] • public auction [G.S. 160A-270] The General Statutes noted above are attached for reference purposes. Staff is recommending the Board authorize the sale of the subject properties via sealed bid, with an upset bid. An outline of the steps to be taken would include: • Advertising the properties for sale as required in a local newspaper, but also circulating information via Internet and posting signs on the buildings for sale; • A bid date would be set (approximately 60 days after BOCC approval) after which bids would be opened publicly; • The bid results would be presented to the Board who would "propose to accept the offer", which would subsequently kick off the upset bid process; • Appropriate advertising for the upset bid would occur and the process would begin with the highest responsible bid creating the threshold for upset bids; • Upset bids would be accepted for a period of 10 days, after which a bid opening would be held for any upset bids. An upset bid must be a minimum of 10% of the first $1,000 and 5% of the balance in order to be considered; • Assuming an upset bid is received, it would form the threshold for the next round of upset bids. This would continue until no upset bids were received during the 10 day period, after which the results would be presented to the Board for consideration. Proposed terms of sale are included in the attached Resolution Authorizing Sealed Bid Sale. FINANCIAL IMPACT: No financial impact will be realized until such time properties are sold and proceeds received. RECOMMENDATION(S): The Interim Manager recommends the Board: 1. Approve the Resolution Authorizing Sealed Bid Sale; and 2. Authorize the Director of Asset Management and Purchasing Services to carry out the sale pursuant to the process and timeline identified herein.