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Board
Approval 03/22/06 /s/
Jack Bush____ Chairman |
No.: B 2.1 Subject: Disposal of Property Date: 03/22/06 |
Guidelines for Disposal of County of Lewis Industrial Development Agency
(“Agency”) Real and Personal Property
I. Applicability of Procedure/Contracting Officer
A.
This Procedure shall apply
to the disposal of
any Agency personal property and any Agency interest in real property,
to the
extent that real property interest may be conveyed to another party.
B.
This procedure shall not
apply to the
property the Agency takes title of in an Industrial Development Agency
project
such as bond and straight lease transactions for the purpose of
borrowing money
through the issuance of tax-exempt or taxable industrial development
bonds,
exemption from mortgage recording tax, enter into property tax payment
agreements or exemption from sales tax for acquisition of construction
materials, machinery and equipment.
C.
“Disposal” hereunder means
transfer of title
or any other beneficial interest in personal or real property.
D.
The Agency employee
designated hereunder as
responsible for the disposition of Agency real or personal property
under this
procedure is deemed the “Contracting Officer.” The Contracting Officer
for the
Agency shall be the Agency’s Executive Director. The Contracting
Officer shall
be responsible for our Agency’s compliance with, and enforcement of,
this
procedure. The procedure shall comply with and be subject to Public
Authorities
Law Sections 2896 and 2897 as well as Public Authorities Law Section
2045 a
through x.
E.
The guidelines
set forth in this Procedure shall be annually reviewed and approved by
the
Agency Board and annually posted on our Agency’s internet website.
II. Property Inventory Controls
A.
Agency Procedure for Real
Property
1. The Agency shall maintain adequate inventory controls and accountability systems for all real property owned by or under the Agency’s control. In order to accomplish this, the Agency’s Contracting Officer shall maintain a detailed list of all real property owned by the Agency, or in which the Agency has an interest, including specifics as to:
a. Location of property by County,
Town/City/Village
b.
County tax map
number
c.
Acreage
d.
Improvements
thereon- including a detailed description and recent photographs thereof
e.
Date of
purchase/lease/other property interest
f.
Property
interest (i.e. fee, lease, license, etc.)
g.
Assessed value
h.
Breakdown on
assessed value of land and improvements
i.
Deed- book and
page number as file with County Clerk’s office (if Agency owned)
j.
Purchase
price/lease amount
k.
Present Agency
use- includes copies of DEC permits
l.
Date property
was last visited – property must be visited at least annually
III.
Guidelines
regarding the use, awarding, monitoring and reporting of contracts for
the
disposal of Agency real property.
A.
The Agency shall, at least
annually,
inventory all real property and determine which real property should be
disposed of. For any such real property
disposed of, the Agency shall make a written report of the method and
terms of
disposal and transfer or dispose of the property as promptly as
possible in
accordance with the procedure set forth below.
B.
The Agency shall, at least
annually, prepare
or update, as necessary, and publish a report listing all real property
owned
by the Agency. (See Section II. A. above). Such report shall also
contain a
list and full description of any real property disposed of during such
period.
The report shall contain the price received by the Agency and the name
of the purchaser
of such real property sold by the Agency during such period. Copies of
the
report should be delivered to the State Comptroller, the state Director
of the
Budget, The Commissioner of General Services, and New York State
Legislature.
C.
Procedure for Disposition
1. As noted above, the Contracting Officer shall have supervision and direction over the disposition of all real property of the Agency.
2. Provisions
related to Disposition of Real Property
a. Real property may be disposed of for not less than Fair Market Value by sale, exchange, or transfer for cash, credit or other property, with or without warranty, and upon such other terms and conditions as the Contracting Officer deems proper.
b. The Agency’s Executive Director may only execute such documents authorized by the Agency Board for the transfer of title to real property and take such other action as it deems necessary or proper to dispose of such real property.
c.
No disposition of real property or other
interest in
real property which, because of its unique nature, is not subject to
fair
market pricing shall be made unless an appraisal of the value of such
property
has been made by an independent appraiser certified in the State of New
York
and included in the record of transaction.
d. Where appropriate the Agency may also utilize the services of the State Commissioner of General Services to dispose of the Agency real property under terms and conditions agreed to by the agency.
e. A deed, bill of sale, lease or other instrument executed by or on behalf of the Agency, purporting to transfer title or any other interest in real property of the Agency shall be conclusive evidence of compliance with this procedure, as well as with the Public Authorities Accountability Act of 2005, insofar as it concerns title or other interest of any bona fide grantee or transferee who has given valuable consideration for such title or other interest and has not received actual or constructive notice of lack of such compliance prior to closing. Agency Counsel shall review and approve as to legal form all real estate documents that transfer title.
f.
No real property or real property interest
may be
dispositioned under these guidelines to employees or Board members of
the
Agency or their immediate families, relatives, firms, employers or
agents
unless specifically authorized by the Board in compliance with the
Agency’s
Ethics Code.
3.
Bids for Disposition
a.
Unless sold
through negotiation or auction under Section 4 below, all other
disposals or
contracts for disposal of Agency real property made or authorized by
the
Contracting Officer shall be made after publicly advertising for bids.
b.
Whenever public
advertising for bids is required under III. C. 3. (a) above, the
advertisement
for bids shall be made at such a time prior to the disposal or
contract,
through such methods and on such terms and conditions as shall permit
full and
free competition consistent with the value and nature of the property.
c.
All bids shall
be publicly disclosed at the time and place stated in the advertisement.
d.
The award shall
be made with reasonable promptness by notice to the responsible bidder
whose
bid, conforming to the invitation for bids, will be the most
advantageous to
the Agency, price and other factors considered provided, however, that
all bids
may be rejected when it is in the public interest to do so.
approval, also be negotiated or made by public auction rather than bid, but subject to obtaining such competition as is feasible under the circumstances, if:
a.
The estimated
fair market value of the real property does not exceed Fifteen Thousand
Dollars
($15,000) and
b.
Bid prices
after advertising therefore are not reasonable, either as to all or
part of the
property, or have not been independently arrived at in open
competition, or
c.
The disposal
will be to the State of New York or any political subdivision and the
estimated
fair market value of the real property and other satisfactory terms of
disposal
are obtained by negotiation, or
d.
The disposal is
for an amount less than the estimated fair market value of the
property, the
terms of such disposal are obtained by public auction or negotiation,
the
disposal of the property is intended to further the public health,
safety or
welfare or an economic development interest of the state or a political
subdivision (to include but not limited to the prevention or
remediation of a
substantial threat to the public health or safety, the creation or
retention of
a substantial number of job opportunities, or the creation or retention
of a
substantial source of revenues), or where our Agency’s enabling
legislation
found in Public Authorities Law Section 2045 a through x permits, or
e.
Where such
action is otherwise authorized by law.
5. Agency Board approval and an explanatory statement shall be prepared of the
circumstances of each disposal by negotiation of Agency real property if:
a.
Any real
property that has an estimated fair market value in excess of One
Hundred
Thousand Dollars ($100,000), except that any real property disposed of
by lease
or exchange shall only be subject to III. C. 5. (b) through (d) below.
b.
Any real
property disposed of by lease for a term of five (5) years or less, if
the
estimated fair annual rent is in excess of One Hundred Thousand Dollars
($100,000) for any of such years.
c.
Any real
property disposed of by lease for a term of over five (5) years, if the
total
estimated rent over the term of the lease is in excess of One Hundred
Thousand
Dollars ($100,000).
d. Any real property or real and related personal property disposed of by exchange, regardless of value, or any property any part of the consideration for which is real property.
6.
Real property values shall be determined by
a New York State certified
professional
real property appraisal with additional consideration given to any site
environmental
conditions, if known. Each
such statement shall be transmitted to
the
persons entitled to receive copies of the report acquired under this
procedure,
not less than 90 days in advance of such
disposal, and a copy thereof shall be preserved
in accordance with the Agency’s Record Retention Policy or thirty (30) days,
whichever is longer.
IV.
Guidelines
regarding the use, awarding, monitoring and reporting of contracts for
the
disposal of Agency personal property.
A.
The Agency shall maintain
adequate inventory
controls and accountability systems for all personal property under our
Agency’s control.
B.
The Agency shall, at least
annually,
inventory all the Agency personal property having a book value of Five
Thousand
Dollars ($5,000) or more and determine which personal property, if any,
should
be disposed of. For any such personal
property disposed of, the Agency shall make a written report of the
method and
terms of disposal and transfer or dispose of the personal property as
promptly
as possible in accordance with the procedure set forth below.
C.
Method of Disposition:
1. The Contracting Officer shall
also have supervision and direction over the
disposition of all personal
property of the Agency.
2. Provisions Related to
Disposition or Trade-In of Surplus Agency Equipment
a.
Surplus
equipment will be disposed of in accordance with the following:
The
Agency has, on occasion, the need to sell unneeded, worn-out or
obsolete equipment, computers, furniture, machinery, tools, parts and
vehicles. The Agency has the discretion
to conduct such sales by public auction, competitive bidding, or as a
last
option, private negotiation. The method chosen should be the one which
will
bring the best price or the most beneficial terms. The procedure for
disposing
of such surplus equipment shall be as follows:
1)
Declaration the Equipment is surplus or Unneeded
a)
An Agency
employee or manager responsible for any surplus, unneeded, worn-out or
obsolete
equipment with an estimated value over $100 shall fill out as equipment
disposal request and forward same to the Agency’s Contracting Officer.
If the
Contracting Officer determines that the equipment has, in his opinion,
a fair
market value over $100 and that the equipment is surplus, unneeded or
obsolete,
he shall forward a recommendation for its disposition to the Agency’s
Board of
Directors, and if the Board of Directors concurs, the disposition shall
be made
under the procedure set forth in Section IV. C. 2. a. (2.) below.
b)
If the
equipment has, in the opinion of the Contracting Officer, an expected
remaining
market value at that time of less than $100, in total, the manager
having
responsibility for the equipment may sell same by negotiated sale after
obtaining at least one, and preferably two, informal quotes or may
dispose of
the equipment under the aggregate surplus equipment sale procedure
found in
Section IV. C. 2. a. (2). below. If no
quotes can be obtained or if the item has no real value or the cost of
effecting a sale exceeds the limited value, the item may be discarded
or sold
for scrap in the discretion of the Contracting Officer.
2) Procedure of
Sale of Surplus Equipment Having Value Over $100 but
Less
than $5,000
a)
If the
equipment to be disposed of has an estimated fair market value in the
opinion
of the Contracting Officer, in total, of more than $100 but less than
$5,000,
the Agency’s Board of Directors may authorize the Contracting Officer
to
proceed with its sale. Such sale may,
in the first instance, be by public auction or competitive bidding as
the
Contracting Officer deems appropriate. The Executive Director may
initially
obtain an informal appraisal of the fair market value of the equipment,
if he
deems such an appraisal useful. The fair market value can also be
estimated
from public valuation lists or other reference valuation sources on the
Internet or otherwise. If three or more
offers, quotes or bids are received, the Executive Director may proceed
with
the sale to the party submitting the highest offer, bid or quote within
the
specified time and term specifications. If sufficient competition is
not
generated (3 or more quotes or bids), the Executive Director shall
direct a
second solicitation, including advertisement in the official newspaper
and any
appropriate trade journals, as well as active direct solicitation. The sale may then be made to the party
submitting the highest offer, bid or quote, whether or not
three (3) bids or quotes have been
received. If no offers, bids or quotes
result from this second solicitation,
the equipment may then be sold by private negotiation.
b)
If the
equipment has as estimated fair market value of $5,000 or more, the
Executive
Director shall first consult any published valuation sources that may
be
available both from published lists, on the Internet or in the media,
obtain an
appraisal or otherwise develop available information estimating the
fair market
value of the equipment and, with his recommendation, forward the
request to the
Board of Directors for its review and determination.
Such property may not, in the first instance, be sold for
significantly less than the estimated fair market value.
The Board of Directors may, if it agrees
with the Executive Director and determines that a sale is in order,
authorize
such sale by either public auction or sealed bids upon such terms as
deemed
proper. If sale is made by public
auction, it must be authorized by the Agency’s Executive Director with
authority given to the auctioneer to sell the items above a certain
floor price
established based upon the estimated fair market value. (See Above). If sale is by sealed competitive bids, the
Board may award to the highest responsible bidder meeting the bidding
criteria
but may reject all bids and readvertise for a rebid if it determines
that the
bids were too low, relative to the estimated fair market value, or
there was
determined to be inadequate competition.
Whether the sale is by sealed bids or auction, it should be
widely
advertised in advance in the official newspaper, any appropriate trade
journals
and by direct solicitation to potential purchasers to promote maximum
competition.
c)
When practical,
and to promote more competition and reduce advertising costs, the
Agency should
encourage aggregating surplus items and equipment for sale by means of
an
auction, competitive bid or as a last option by negotiated sale. The Agency’s Conracting Officer should
periodically review surplus and projected surplus items and equipment
and
consider methods for effectively aggregating same.
3) Conflict of Interest Affidavit
Required
a) All
purchasers or equipment under this Procedure must submit with
their bid or purchase offer a
completed and signed Conflict of Interest
Affidavit indicating that they
or their family or firm have no conflict of
interest that would prevent
them from purchasing the equipment.
No
equipment may be dispositioned
under these guidelines to employees or
Board members of the Agency or
their immediate families, relatives,
firms, employers, or agents
unless specifically authorized by the Board
in compliance with the Agency’s
Ethics Code.
4) Procedure
if Surplus Equipment is Unsold
5) Report of Final Disposition
a) Upon final disposition of the
item(s) the Agency employee or manager
responsible for the surplus
shall submit a brief memo to the Board of
Directors describing the
item, Fixed Asset serial number (if any), sale
price or scrap value
received
(if any), and buyer (if any). The
fixed
asset inventory shall be
posted with the changes and the disposition
memo retained in records
retention for three (3) years.
6) Use of Surplus or Obsolete Equipment
for “Trade-In” Value
a) As an alternative to a sale of the surplus, worn or
obsolete items or
equipment, the
Agency may include such item as a “trade-in” when
replacement goods are
purchased under the Agency’s Purchasing
Policy.
The trade-in value of the items or equipment
must then be
considered in making an award
to the lowest responsible bidder or
quoter meeting the
specifications for the replacement goods.
If the
trade-in value is determined
separately, the Agency should consider
whether the trade-in value
offered varies significantly from the
proposed trade-in’s estimated
fair market value. If it does, the item
should not be traded in but sold
separately under the procedures
outlined above.
b) Surplus, worn, or obsolete items or
equipment may also be traded in on
purchases
made off of a
State Contract for similar equipment.
Before
the
purchase with
trade-in is approved, the manager responsible for the
equipment
to be traded
in should ascertain whether the trade-ion
allowance
is reasonable
for equipment of that age and condition.
If the
trade-in
allowance is
deemed to be not adequate, the disposition
procedure
found in
Sections IV. C. 2. b. (1) through (5) above should be
followed.
3.
Provisions Related to Disposition of Other Agency Personal
Property
Having an
Estimated Fair Market
Value of $5,000 or
More
a.
There may be
some occasions when the Agency has personal property having an
estimated fair
market value by the Agency’s Contracting Officer of $5,000, or more,
other than
those listed in IV. C. 2. above, which it wishes to dispose of (e.g.
trademark
rights, office supplies, etc.). Such
Agency personal property other than surplus or worn equipment may be
disposed
of directly by the Agency for not less than the estimated fair market
value
following the procedure for valuation of equipment set forth above. Such disposition may be made by sale,
exchange or transfer for cash, credit or other property, with or
without
warranty, and upon such other terms and conditions as the Contracting
Officer
deems proper.
b.
The Agency may
execute such documents authorized by the Agency Board for the transfer
of title
or other interest in property and take such other action as it deems
necessary
or proper to dispose of such property.
c.
No disposition
of unique personal property, which because of its unique nature is not
subject
to fair market pricing, shall be made unless an appraisal of the value
of such
property has been made by an independent appraiser and included in the
record
of transaction.
d.
Where appropriate the Agency may also
utilize the services
of the State Commissioner of General Services to dispose of the Agency
real
property under terms and conditions agreed to by the agency.
e.
A bill of sale
or other instrument executed by or on behalf of the Agency, purporting
to
transfer title or any other interest in Agency personal property shall
be
conclusive evidence of compliance with this procedure, as well as with
the
Public Authorities Accountability Act of 2005, insofar as it concerns
title or
other interest of any bona fide grantee or transferee who has given
valuable
consideration for such interest and has not received actual or
constructive
notice of lack of such compliance prior to closing.
4.
Where Bids for Disposition of Other Non-Equipment Type Personal
Property
are
Utilized
a.
All disposals
or contracts for disposal of other non-equipment type Agency personal
property
having an estimated fair market value of $5,000 or more (by the
Contracting
Officer) shall be made after publicly advertising for bids except where
authorized to be sold by auction or negotiation herein.
b.
Whenever public
advertising for bids is required above, the advertisement for bids
shall be
made at such time prior to the disposal or contract, through such
methods and
on such terms and conditions as shall permit full and free competition
consistent with the value and nature of the property.
c.
All bids shall
be publicly disclosed as the time and place stated in the advertisement.
d.
The award shall
be made with reasonable promptness by notice to the responsible bidder
whose
bid, conforming to the invitation for bids, will be most advantageous
to the
Agency, price and other factors considered provided, however, that all
bids may
be rejected when it is in the public interest to do so.
5.
Any other disposals or contracts for disposal of personal
non-equipment
Agency
property
not covered under IV. C. 2., above, may be negotiated or made by
public auction
rather than bid,
but subject to obtaining such competition as is feasible under the
circumstances, only if:
a.
The personal
property involved is of a nature and quantity which, if disposed of
under the
guidelines above, would adversely affect the local market for such
property,
and the estimated fair market value of such property and other
satisfactory
terms of disposal can be obtained by negotiation, or
b.
The fair market
value of the personal property is less than Five Thousand Dollars
($5,000), or
c.
Bid prices
after advertising for such items are determined by the Contracting
Officer to
not be reasonable, either as to all or part of the personal property,
or have
not been independently arrived at in open competition, or
d.
The disposal
will be to the State of New York or any political subdivision and the
estimated
fair market value of the personal property and other satisfactory terms
of
disposal are obtained by negotiation, or
e.
The disposal is
for an amount less than the estimated fair market value of the personal
property, the terms of such disposal are obtained by public auction or
negotiation, the disposal of the personal property is intended to
further the
public health, safety or welfare or an economic development interest of
the
state or a political subdivision (to include but not limited to the
prevention
or remediation of a substantial threat to the public health or safety,
the
creation or retention of a substantial number of job opportunities, or
the
creation or retention of a substantial source of revenues), or where
our
Agency’s enabling legislation found in Public Authorities Law Section
2045-a
through x permits, and the purpose and terms of such disposal are
documented in
writing, or
f.
Where such
action is otherwise authorized by law.
6. Agency Board approval and
an explanatory statement shall be prepared of the
circumstances of each
disposal by negotiation of:
b. Any personal
property disposed of by
exchange, regardless of value, or any
Agency real
property.