AGENDA #4L

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Resolution Authorizing Informal Bid and Surplus Property Limits

DATE:            September 12, 2005

The attached resolution would authorize an increase of the informal bidding limit from $5,000 to $30,000 and increase the value of surplus property that may be sold using informal procedures from $5,000 to $30,000. 

BACKGROUND AND DISCUSSION

On July 27, 2005, the State enacted Session Law 2005-227, titled “An Act To Facilitate Electronic Purchase And Sale Of Local Government Property And To Make Other Purchasing Changes” which includes changes for various North Carolina General Statutes for purchasing.  This Act authorizes local governments to increase the informal bidding limits from $5,000 to $30,000.  We propose the Council authorize an increase of the informal bidding limit to $30,000.  We will retain internal regulations for requiring second quotes on purchases between $5,000 and $30,000. 

This Act also authorizes local governments to increase the value of surplus property that may be sold using informal procedures from $5,000 to $30,000.  The authorization to increase the value of surplus property to $30,000 would allow for a higher limit in the utilization of electronic auctions for surplus property and waive the advertising requirement for property valued under $30,000.  These changes would benefit the Town by reducing advertising costs, reducing storage requirements for surplus property and increasing sales of Town surplus assets.  We believe that we would be able to increase our income from surplus property sales and increase our efficiency.

RECOMMENDATION

That the Council adopt the attached resolution authorizing an increase in the informal bidding limit from $5,000 to $30,000 and an increase in the value of the surplus property that may be sold using informal procedures from $5,000 to $30,000.

A RESOLUTION AUTHORIZING ADOPTION OF AN INCREASE IN THE INFORMAL BID LIMIT FROM $5,000 TO $30,000 AND AN INCREASE IN THE VALUE OF SURPLUS PROPERTY THAT MAY BE SOLD USING INFORMAL PROCEDURES FROM $5,000 TO $30,000 (2005-09-12/R-10)

WHEREAS, Chapter 227 of the 2005 Session Laws authorizes to increase the informal bidding limits to $30,000 and increase the value of surplus property that may be sold using informal procedures to $30,000;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the increase of the informal bidding limit from $5,000 to $30,000 and authorizes an increase to $30,000 in the value of surplus property that may be sold using informal procedures.

This the 12^th day of September, 2005.