1f Amendment to City Code/Unclaimed Property
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone 952.227.1100
Fax 952227.1110
Building Inspections
Phone 952.227.1180
Fax 952.227.1190
Engineering
Phone 952.227.1160
Fax 952.227.1170
Finance
Phone 952.227.1140
Fax 952.227.1110
Park & Recreation
Phone 952227.1120
Fax 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax 952.227.1404
Planning &
Natural Resources
Phone 952.227.1130
Fax 952.227.1110
Public Works
1591 Park Road
Phone 952.227.1300
Fax 952.227.1310
Senior Center
Phone 952.227.1125
Fax 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
u
TO:
Todd Gerhardt, City Manager
FROM:
Justin Miller, Assistant City Manager:S1tA
~
DATE:
September 16, 2005
RE:
Ordinance Concerning Disposal of Unclaimed Property
BACKGROUND
On October 13th, the City of Chanhassen will be holding an auction to dispose of
city property that is no longer needed for our daily operations. Equipment
scheduled to be included in the auction include chairs, shelving, slides from park
playgrounds, and other equipment. Over the course of the past few years, the city
has collected other property that was either left at a city facility or otherwise came
into our possession. The State of Minnesota sets specific requirements on how
"lost and found" property must be disfosed of. Staff would like to include this
unclaimed property in the October 13 auction, but to do so an ordinance
amendment must be approved.
The attached ordinance proposes to adopt the following requirements for disposal
of unclaimed property:
· Property must be safely stored for a period of at least 60 days
· If ownership can be established, the city must attempt to contact the owner
· If unclaimed, the city may auction the property to the highest bidder or can
use the property for city purposes
· One weeks notice must be given for any auction
· The proceeds of the auction will be deposited into the city's general fund
Slightly different regulations pertain to disposal of impounded vehicles:
· Notice of the taking shall be provided to the registered owner within five
days
· The owner shall have the right to reclaim the vehicle within 15 days
· If the vehicle is older than seven years, is lacking vital component parts,
and does not display a valid license plate, it is eligible for immediate
disposal and not subject to notification or reclamation provisions
Examples of unclaimed property that is currently in the city's possession include
several cameras, rings, and an MP3 player. In all cases, the property has been in
the city's possession longer than 60 days, and many attempts have been made to
locate the owners, if possible.
RECOMMENDA TION
Staff recommends that the City Council approve the attached ordinance amending
Chapter 2 of the Chanhassen City Code concerning disposal of unclaimed
property. This action requires a majority of the City Council for approval.
The City 01 Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautitul parks A great place to live, work, and play
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 2 OF
THE CHANHASSEN CITY CODE CONCERNING
DISPOSAL OF UNCLAIMED PROPERTY
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA
ORDAINS:
SECTION 1. Chapter 2 of the Chanhassen City Code is amended by adding Article
V to read:
v. DISPOSAL OF UNCLAIMED PROPERTY
Sec. 2-72. Definitions.
In this Chapter:
Abandoned Vehicle means a motor vehicle that:
(1) has remained illegally:
(i) for a period of more than 48 hours on any property owned or
controlled by a unit of government, or more than four hours on that property
when it is properly posted; or
(ii) on private property for a period of time, as determined under
Minnesota Statutes Section 168B.04, subdivision 2, without the consent of the
person in control of the property; and
(2) lacks vital component parts or is in an inoperable condition such that it
has no substantial potential for further use consistent with its usual functions, unless
it is kept in an enclosed garage or storage building.
(3) A classic car or pioneer car, as defined in Minnesota Statutes Section
168.10, is not considered an abandoned vehicle.
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(4) Vehicles on the premises of junk yards and automobile graveyards that
are defined, maintained, and licensed in accordance with Minnesota Statutes Section
161.242, or that are licensed and maintained in accordance with local laws and
zoning regulations, are not considered abandoned vehicles.
(5) A vehicle being held for storage by agreement or being held under
police authority or pursuant to a writ or court order is not considered abandoned, nor
may it be processed as abandoned while the police hold, writ, or court is in effect.
Junk Vehicle means a vehicle that:
(1) is three years old or older;
(2) is extensively damages, with the damage including such things as
broken or missing wheels, motor, drive trail, or transmission;
(3) is apparently inoperable;
(4) does not have a valid, current registration plate; and
(5) has an approximate fair market value equal only to the approximate
value of the scrap in it.
Motor Vehicle means every vehicle which is self-propelled.
Net Proceeds means the sale price of any item of property or of a motor vehicle, less
any costs of handling, storage and sale.
Property means all forms of tangible personal property.
Sec. 2-73. Disposal of property other than motor vehicles.
Unless otherwise specified in this Section, property lawfully coming into the
possession of the City and its duly designated agents, in the course of its municipal
operations shall be stored and safely maintained by the City for a period of sixty (60) days.
Such property shall be disposed of by the City in the following manner:
(a) During such sixty (60) day period the City may deliver such property to the
true owner thereof upon proof of ownership, and upon ten (10) days' notice by mail to other
persons who may have asserted a claim of true ownership. In the event ownership cannot
be determined to the satisfaction of the City Manager, or the Manager's designee, the
Manager may refuse to deliver such property to anyone until ordered to do so by the court.
The City Manager may in his or her discretion choose to deposit such property with the
court if there are sufficient competing claims to the property.
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(b) If the true owner does not claim the property during the sixty (60) day period,
the City may release the unclaimed property to the finder of the property if, at the time of
delivery to the City, the finder indicated in writing that he or she wished to assert a claim to
the property as finder. This subsection is not applicable if the property was found by a City
employee in the ordinary course of his or her duties.
(c) Upon the expiration of the sixty (60) day period, property remammg
unclaimed may be sold by the City to the highest bidder at public auction or sale following
one week published notice thereof. In lieu of public auction or sale, any of such unclaimed
property may be appropriated to the use of the City upon approval of such appropriation by
the City Manager. If the property is not sold at the public auction or sale and is not deemed
appropriate for use by the City, the City Manager may then dispose of the property in any
manner he or she deems appropriate.
(d) The City Manager, or the Manager's designee, may at any time without notice
and in such manner as he or she determines to be in the public interest, dispose summarily
of any property coming into the City's possession which the Manager determines to be
dangerous or perishable. The City Manager shall make a record of the pertinent facts of the
receipt and disposal of such property.
Sec. 2-74. Deposit of net proceeds.
The net proceeds of the sale of any property other than a motor vehicle, whether by
public auction or sale, shall be deposited in the general fund of the City subject to the right
of the former owner of the property to the payment of the net sale proceeds from the general
fund upon application and satisfactory proof of ownership within six (6) months of the sale.
Sec. 2-75. Disposal of motor vehicles.
Motor vehicles impounded by the City and its duly designated agents, or otherwise
lawfully coming into its possession during the course of its municipal operations, shall be
disposed of in accordance with Minnesota Statutes Chapter 168B as follows:
(a) The City shall give notice of the taking within five (5) days unless the vehicle
is reclaimed prior thereto.
(b) The notice shall set forth the date and place of taking, the year, make, model,
and serial number of the vehicle if such information can be reasonably obtained and the
place where the vehicle is being held.
(c) The notice shall inform the owner and any lien holders of the right to reclaim
the vehicle.
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(d) The notice shall state that failure of the owner or lien holders to exercise their
right to reclaim shall be deemed a waiver by them of all right, title, and interest in the
vehicle and contents and a consent to the sale of the vehicle and contents at a public auction
or sale.
(e) The notice shall be sent by mail to the registered owner, if any, of the vehicle
and to all readily identifiable lien holders of record. If it is impossible to determine with
reasonable certainty the identity and address of the registered owner and all lien holders, the
notice shall be published once in a newspaper of general circulation in the area where the
motor vehicle was taken.
Sec. 2-76. Right of reclaim.
The owner or lien holder shall have the right to reclaim the vehicle from the City
upon payment of all towing and storage charges resulting from the taking within fifteen (15)
days in the case of a junk motor vehicle or abandoned motor vehicle or forty-five (45) days
for other vehicles of the notice required by Section 2- 7 5.
Sec. 2-77. Public Sale.
If the vehicle is not reclaimed pursuant to Section 2-76, if shall be sold to the highest
bidder at a pubic auction sale. The purchaser shall be given a receipt in a form prescribed
by the registrar of motor vehicles which shall be sufficient title to dispose of the vehicle.
The receipt shall entitle the purchaser to register the vehicle and receive a certificate of title,
free and clear of all liens and claims of ownership. Before such vehicle is issued a new
certificate of title, it must receive a motor vehicle safety check. Proceeds of the sale will be
used to reimburse the City for its costs involved in towing, preserving and storing the
vehicle, and all administrative, notice, and publication costs. Any remainder from the
proceeds of a sale shall be held for the previous owner or entitled lien holders for ninety
(90) days and then shall be deposited in the treasury of the City.
Sec. 2-78. Immediate sale.
Notwithstanding any other provisions of this Chapter, if a motor vehicle is more than
seven (7) model years of age, is lacking vital component parts, and does not display a
license plate currently valid in Minnesota or any other state or foreign country, it shall
immediately be eligible for public sale pursuant to Section 2-75 and shall not be subject to
the notification, reclamation or title provisions specified herein.
SECTION 2. This ordinance shall be effective immediately upon its passage and
publication.
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PASSED AND ADOPTED this day of
Council of the City of Chanhassen, Minnesota.
, 2005, by the City
A TIEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on
, 2005).
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