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City Manager 334 Front Street Ketchikan, AK 9990 I Phone (907) 228-5603 Fax (907) 225-5075
TRANSMITTAL MEMORANDUM
TO:
The Honorable Mayor and City Council
FROM:
Karl R. Amylon, City Manager
DATE:
July 21 , 2017
RE:
Ordinance No. 17-1848 -Adopting New Subsection (d)(3) To KMC Section 3.12.070 Entitled "Sale Or Other Disposition Of Personal Property Or Interest Therein"; And Establishing An Effective Date
The attached ordinance was prepared at the request of Finance Director Bob Newell, who asked that it be placed before the City Council for consideration at its meeting of August 3, 2017. If adopted, Ordinance No. 17-1848 provides for adding a new subsection to the Ketchikan Municipal Code that exempts the sale of personal property from the competitive bidding process provided that it is a part of a transaction to acquire other personal property. The rationale for amending the Ketchikan Municipal Code is detailed in the Finance Director's transmittal memorandum and requires no elaboration on the part of my office. I concur with Mr. Newell's recommendation. The Finance Director will be attending the City Council meeting of August 3, 2017, in order to address any questions and/or concerns that Councilmembers may have. A motion has been prepared for City Council consideration. RECOMMENDATION
It is recommended that the City Council adopt the motion approving in first reading Ordinance No. 17-1848 adopting new subsection (d)(3) to KMC Section 3.12.070 entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and establishing an effective date. Recommended Motion: I move the City Council approve in first reading Ordinance No. 17-1848 adopting new subsection (d)(3) to KMC Section 3.12.070 entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and establishing an effective date.
AGENDA- 08/03/17- GGNB2
Bob Newell, Finance Director Camille Nelson, Financial Analyst Phone: (907) 228-5621 Facsimile: (907) 228-5617
MEMORANDUM CITY OF KETCHIKAN, ALASKA Finance Department Office of the Finance Director TO:
Karl R. Amylon, City Manager/KPU General Manager
FROM:
Bob Newell, Finance Director
0.
1
(jJl 1
DATE:
July 20, 2017
SUBJECT:
Ordinance No. 17-1848, Adding New Subsection (d)(3) to KMC Section 3.12.070 Entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and Establishing an Effective Date
The purpose of Ordinance No. 17-1848 is to amend the Ketchikan Municipal Code to address trade-ins of surplus personal property. Currently, the Ketchikan Municipal Code does not provide clear guidance regarding trade-ins and generally requires personal property with a value of more than $2,000 to be sold through a competitive bidding process. There are times when in may be advantageous for the City to consider a trade-in as part of a transaction to acquire personal property. An example that comes to mind is highly technical equipment that has a limited market. A dealer or vendor that accepts trade-ins for such equipment is in a better position to identify potential buyers and may be able to offer the City higher value than it could otherwise achieve by going through a competitive bidding process. The amendment to the KMC adds a new paragraph that explicitly exempts the sale of personal property from the competitive bidding process provided that it is part of a transaction to acquire other personal property. The amendment does not change the process the City must follow when acquiring personal property. The City will continue to obtain written quotes or competitive bids when required. If the ordinance passes, vendors responding to the City's request for quotes or bids for personal property will now be able to include a trade-in value in their quote or bid. Permitting trade-ins provides the City with another option to maximize the proceeds it receives from the sale of surplus property. Approving Ordinance No. 17-1848 will formalize the City's procurement policies as it pertains to trade-ins. For these reasons, I recommend approval of Ordinance No. 17-1848.
Recommended Motion: I move the City Council approve in first reading Ordinance No. 17-1848, adding new subsection (d)(3) to KMC Section 3.12.070 entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and establishing an effective date.
THE CITY OF KETCHIKAN, ALASKA ORDINANCE NO. 17-1848 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA; ADDING NEW SUBSECTION (d)(3) TO KMC SECTION 3.12.070 ENTITLED "SALE OR OTHER DISPOSITION OF PERSONAL PROPERTY OR INTEREST THEREIN"; AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA, AS FOLLOWS:
Section 1: New Subsection. A new subsection (d)(3) is added to Section 3.12.070, entitled "Sale or other disposition of personal property or interest therein," of the Ketchikan Municipal Code, to read as follows: "(d) Personal property, or an interest therein, may, subject to the provisions of Section 5-17 of the City Charter, be sold or otherwise disposed of without competitive bidding as follows: (1) Supplies, materials, equipment or other personal property, or any interest therein, may be sold or otherwise disposed of by the manager when the total value thereof, as estimated by the manager, does not exceed collectively $2,000. (2) The manager may sell, lease, donate, exchange or otherwise dispose of personal property, or an interest therein, to or with another municipality, a state or the United States when and under such terms and conditions as the council, in its sole judgment, deems advantageous to he city. When the surplus property is disposed of by means of a trade-in credit in connection with the acquisition of other personal property by the city."
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Section 2: Effective Date. This ordinance is effective one (1) month after its final passage and publication.
PASSED ON FIRST READING - - - - - - - - - - - - - - - - FINAL PASSAGE - - - - - - - - - - --
ADU!0/3. 12.070(d)(3)
Page 1
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Ordinance No. 17-1848
Lew Williams III, Mayor
I ATTEST:
EFFECTIVE
RO LL CALL
DATE:
YEA
I
* NAY
ABSENT
COOSE FLORA GAGE
Katherine M. Suiter
IS OM KIFFER
City Clerk FYI:
SIVERTSEN ZENGE
Bracketed language is intended to be removed from the existing ordinance, and underlined language in bold type is intended as an addition to the existing Ketchikan Municipal Code.
ADU/0/3.12.070(d)(3)
MAYOR
Page 2
Ordinance No. 17-1848
Cib' ()f .... 1\ekhlkan
City Manager 334 Front Street Ketchikan, AK 9990 I Phone (907) 228-5603 Fax (907) 225-5075
TRANSMITTAL MEMORANDUM
TO:
The Honorable Mayor and City Council
FROM:
Karl R. Amylon, City Manager
DATE:
July 21 , 2017
RE:
Ordinance No. 17-1848 -Adopting New Subsection (d)(3) To KMC Section 3.12.070 Entitled "Sale Or Other Disposition Of Personal Property Or Interest Therein"; And Establishing An Effective Date
The attached ordinance was prepared at the request of Finance Director Bob Newell, who asked that it be placed before the City Council for consideration at its meeting of August 3, 2017. If adopted, Ordinance No. 17-1848 provides for adding a new subsection to the Ketchikan Municipal Code that exempts the sale of personal property from the competitive bidding process provided that it is a part of a transaction to acquire other personal property. The rationale for amending the Ketchikan Municipal Code is detailed in the Finance Director's transmittal memorandum and requires no elaboration on the part of my office. I concur with Mr. Newell's recommendation. The Finance Director will be attending the City Council meeting of August 3, 2017, in order to address any questions and/or concerns that Councilmembers may have. A motion has been prepared for City Council consideration. RECOMMENDATION
It is recommended that the City Council adopt the motion approving in first reading Ordinance No. 17-1848 adopting new subsection (d)(3) to KMC Section 3.12.070 entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and establishing an effective date. Recommended Motion: I move the City Council approve in first reading Ordinance No. 17-1848 adopting new subsection (d)(3) to KMC Section 3.12.070 entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and establishing an effective date.
AGENDA- 08/03/17- GGNB2
Bob Newell, Finance Director Camille Nelson, Financial Analyst Phone: (907) 228-5621 Facsimile: (907) 228-5617
MEMORANDUM CITY OF KETCHIKAN, ALASKA Finance Department Office of the Finance Director TO:
Karl R. Amylon, City Manager/KPU General Manager
FROM:
Bob Newell, Finance Director
0.
1
(jJl 1
DATE:
July 20, 2017
SUBJECT:
Ordinance No. 17-1848, Adding New Subsection (d)(3) to KMC Section 3.12.070 Entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and Establishing an Effective Date
The purpose of Ordinance No. 17-1848 is to amend the Ketchikan Municipal Code to address trade-ins of surplus personal property. Currently, the Ketchikan Municipal Code does not provide clear guidance regarding trade-ins and generally requires personal property with a value of more than $2,000 to be sold through a competitive bidding process. There are times when in may be advantageous for the City to consider a trade-in as part of a transaction to acquire personal property. An example that comes to mind is highly technical equipment that has a limited market. A dealer or vendor that accepts trade-ins for such equipment is in a better position to identify potential buyers and may be able to offer the City higher value than it could otherwise achieve by going through a competitive bidding process. The amendment to the KMC adds a new paragraph that explicitly exempts the sale of personal property from the competitive bidding process provided that it is part of a transaction to acquire other personal property. The amendment does not change the process the City must follow when acquiring personal property. The City will continue to obtain written quotes or competitive bids when required. If the ordinance passes, vendors responding to the City's request for quotes or bids for personal property will now be able to include a trade-in value in their quote or bid. Permitting trade-ins provides the City with another option to maximize the proceeds it receives from the sale of surplus property. Approving Ordinance No. 17-1848 will formalize the City's procurement policies as it pertains to trade-ins. For these reasons, I recommend approval of Ordinance No. 17-1848.
Recommended Motion: I move the City Council approve in first reading Ordinance No. 17-1848, adding new subsection (d)(3) to KMC Section 3.12.070 entitled "Sale or Other Disposition of Personal Property or Interest Therein"; and establishing an effective date.
THE CITY OF KETCHIKAN, ALASKA ORDINANCE NO. 17-1848 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA; ADDING NEW SUBSECTION (d)(3) TO KMC SECTION 3.12.070 ENTITLED "SALE OR OTHER DISPOSITION OF PERSONAL PROPERTY OR INTEREST THEREIN"; AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA, AS FOLLOWS:
Section 1: New Subsection. A new subsection (d)(3) is added to Section 3.12.070, entitled "Sale or other disposition of personal property or interest therein," of the Ketchikan Municipal Code, to read as follows: "(d) Personal property, or an interest therein, may, subject to the provisions of Section 5-17 of the City Charter, be sold or otherwise disposed of without competitive bidding as follows: (1) Supplies, materials, equipment or other personal property, or any interest therein, may be sold or otherwise disposed of by the manager when the total value thereof, as estimated by the manager, does not exceed collectively $2,000. (2) The manager may sell, lease, donate, exchange or otherwise dispose of personal property, or an interest therein, to or with another municipality, a state or the United States when and under such terms and conditions as the council, in its sole judgment, deems advantageous to he city. When the surplus property is disposed of by means of a trade-in credit in connection with the acquisition of other personal property by the city."
ru
Section 2: Effective Date. This ordinance is effective one (1) month after its final passage and publication.
PASSED ON FIRST READING - - - - - - - - - - - - - - - - FINAL PASSAGE - - - - - - - - - - --
ADU!0/3. 12.070(d)(3)
Page 1
- --
------
Ordinance No. 17-1848
Lew Williams III, Mayor
I ATTEST:
EFFECTIVE
RO LL CALL
DATE:
YEA
I
* NAY
ABSENT
COOSE FLORA GAGE
Katherine M. Suiter
IS OM KIFFER
City Clerk FYI:
SIVERTSEN ZENGE
Bracketed language is intended to be removed from the existing ordinance, and underlined language in bold type is intended as an addition to the existing Ketchikan Municipal Code.
ADU/0/3.12.070(d)(3)
MAYOR
Page 2
Ordinance No. 17-1848
