6.7 Disposition of Property

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Chapter 6: Facilities


Related MnSCU Board Policy: 7.3 Financial Administration
Related MnSCU Board Procedure: 7.3.13 Surplus Personal Property/Building Disposal

Purpose:  To provide a process that disposes of college-owned surplus personal property and buildings efficiently in a cost effective manner. 

Part 1: Surplus Property
 

Surplus Property includes commodities, equipment, materials, supplies, books, printed matter, office furniture, buildings, and other property that is obsolete, unused, not needed for a public purpose, or ineffective for current use.  Personal Property is the same as Surplus Property with the exclusion of buildings.  Any liens against property must be satisfied before the property can be considered surplus.   

If the surplus property is a fixed asset, the purchasing department will require notification. The Information Technology department will determine the method of proper disposal for computer related surplus property to properly address the sanitization of data.  Normandale Community College will take the following steps for disposal of surplus personal property. 

 

Subpart A: Contact Building Services for removal of items, if no immediate need is determined and the item remains functional, an advertisement will be made available to Normandale Community College to announce availability to other offices, departments, or division within the institution.  

 

Subpart B: If items continue to remain available after a 2 week period, other institutions within the MnSCU system will receive notification of availability through Purchasing Personnel. 

 

Subpart C: If the above steps are unsuccessful, the services of the Department of Administration’s Surplus Services program may be utilized.  

Another option is to offer for sale to the general public by sealed bids, public auction, negotiated sale, pre-priced garage sale, or non-sale by consignment or donation.  Finance personnel may assist if necessary.

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Part 2: Restrictions
 

In accordance with MN Statute 15.054, no state employee or officer shall sell or give away to any other state employee or officer any personal property or materials owned by the state except such items may be sold to a state employee after reasonable public notice at a public auction or by sealed bid if the state employee is the highest bidder and is not directly involved in the auction or sealed bid process.  A state employee may purchase no more than one motor vehicle from the state in any 12-month period. 

A person violating MN Statute 15.054 is guilty of a misdemeanor. 

This does not apply to the sale of personal property or materials acquired or produced by the state for sale to the general public in the ordinary course of business.  State employees are not prohibited from selling or possessing for sale public property if the sale or possession for sale is in the normal course of the employee’s duties.

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Part 3: Buildings
 

If the college determines a building is no longer used or the building is a threat to health, welfare, or safety of students, faculty or staff, it shall sell, demolish, or otherwise dispose of the building.  Except in an emergency, the decision to remove or surplus any building on campus will be consistent with the system office approved Facilities Master Plan.  Any sale of a building with real property owned by Minnesota State Colleges and Universities shall be governed by Board Policy 6.7, Real Estate Transactions, and Procedure 6.7.1, Acquisition and Disposition of Real Estate.

 

Subpart A: Prior to any sale of a building, consultation shall be required to determine whether general obligation bond proceeds were used in the acquisition, construction, renovation or betterment of the building. Any General Obligation bond funds that were used would trigger statutory requirements under MN Statute 16A.695, which also requires Minnesota Management & Budget approval, and likely recapture of the original investment of the General Obligation bond amount from the proceeds.

 

Subpart B: Prior to a sale the campus shall obtain an environmental report to determine the presence of any hazardous materials in the building and make that report available for review by prospective buyers.

 

Subpart C: When appropriate, the State Historical Society shall be notified to determine if the designated surplus building has any historical significance, and the State Building Construction Division should be notified in order to update the master register of state buildings.

 

Subpart D: The college shall obtain at least one written appraisal from an independent appraisal firm for any building valued greater than $40,000. The sale price for surplus building may include the cost of the appraisal as part of the overall purchase price.

 

Subpart E: If a building has a real net value of $5,000 or more (after giving consideration to costs of removal, demolition, salvage and restoration of land), the building may be sold with the assistance of Surplus Services or through sealed bids, at a public auction to the highest responsible bidder or through a licensed real estate broker.

A sale may not be made until publication of notice of the sale in a newspaper of general circulation in the area where the property is located and any other advertising deemed appropriate.

Any of the property may be withdrawn from the sale prior to the completion of the sale unless the auction has been announced to be without reserve.

If the sale is made at public auction, a duly licensed auctioneer must be retained to conduct the sale.

The auctioneer's fees and other administrative costs of the auction must be paid from the proceeds from which an amount sufficient to pay them is appropriated.

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  Policy History:
Date of Adoption:  Established prior to 2011
Date of Implementation:
Date and Subject of Revisions:
Next Review Date:  2014-15
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