Declare Unclaimed Bicycles as Surplus Property and Authorize Donation of Same to a Non-Profit Organization According to Donation Policy

Background:  Staff is requesting Council declare the following property surplus and authorize donation of same:

• Approximately 35 bicycles

Purpose:  The Police Department has approximately 35 unclaimed bicycles in varying degrees of repair.  The bicycles have been held in storage in excess of 90 days without the owners being located.  The City has been contacted by a non-profit agency inquiring about receiving donation of these bikes.  Certain criteria must be followed for donating surplus property to non-profit organizations.  In 2016, a law went into effect, allowing non-profit organizations to receive surplus property from a City as a donation in conformance with certain guidelines.  The Ramsey City Council adopted a donation policy in October 2016, which spelled out those guidelines.  As stated above, City staff was contacted by a non-profit organization inquiring about receiving the unclaimed bicycles, however, the definition of surplus property in the donation policy did not address bicycles or other unclaimed property, but rather equipment purchased by the City for use in Police, Fire, and Public Works operations.  The enacted law did allow for cities to further define surplus property.  Therefore, in October 2017, the City Council adopted a resolution amending the policy for donation of surplus property to include unclaimed, lost, or confiscated property which has been retained by the Police Department for over 90 days.  This shall include, but is not limited to unclaimed bicycles and other non-evidentiary items.  With that current policy in effect, staff is able to donate surplus property upon approval by the City Council. 

Following surplus declaration, the fair market value of the property must be determined.  In conversation with Chief Katers, the fair market value has been determined to be between $1 and $5 per bicycle, which is the average price received from past auctions.  If the fair market value is under $1,000, the City Clerk may approve the donation of such items to a non-profit organization.  If the fair market value is over $1,000, the City Council must approve the donation.  It appears the highest value assessed to these bicycles, total, would be about $175. 

As per the policy, surplus property shall be posted as eligible for donation on the City's website.  The City may also use other reasonable means to notify eligible organizations about the availability of surplus equipment.  The City shall wait at least 30 days after advertising surplus equipment before approving any donation.
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The City Clerk shall post notice on the City's website, of the bicycles as surplus property, to be donated to a qualified, non-profit organization, for the 30 days, following Council authorization. 

Fair market value is far less than $1,000.
Staff has received a completed application from a qualified 501 (c) (3) Non-Profit Organization requesting donation of the bicycles (Bikes4Kids).
As per the policy, staff will notice on the City's website, the unclaimed surplus property, for a period of 30 days.
If more than one request is received, staff will determine the which organization(s) will receive the bicycles. 

N/A

Staff recommends Council declare the unclaimed bicycles as surplus property and authorize staff to notice them as such on the City's website for 30 days.

Staff also recommends that the Council authorize donation of the bicycles to a qualified, non--profit organization upon completed application and signing of a disclaimer form that the merchandise is received as-is.

Motion to declare the approximate 35 unclaimed bicycles as surplus property and authorize advertising - and finally donation - of same to a non-profit organization.   .