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RATWIK, ROSZAK & MALONEY, P.A. <br />Attomeys at Law <br />Paul C. Ratwi�C <br />John M Roszak <br />Patricia A. Maloney* <br />Terrence J. Foy* <br />Stephen G. Andersen*�` <br />Scott T. Anderson <br />Kevin J. lzupp <br />Jay T. Squires*� <br />Ann R. Goering <br />Nancy E. Blumstain* <br />Joseph !. Lang�f <br />Michael J. Waldspurger* <br />Margaret A. Skelton <br />Amy E. Mace <br />lsaac Kaufman <br />Eric ]. Quiring <br />Mr. Christopher K. Miller <br />Finance Director <br />City of Roseville <br />2660 Civic Center Drive <br />Roseville, iV[�I 55113-1899 <br />300 U.S. Trust Building <br />730 Second Avenue South <br />Minneapolis, Minnesota 55402 <br />(612) 339-0060 <br />Fax (612) 339-0038 <br />www.ratwiklaw.com <br />April 13,2005 <br />RE : Authorityfor the Sale of Unneeded CityPersonal Property <br />Our File No. 4002(�)-0001 <br />Dear Chris: <br />Stacey L. Wilson <br />Eric L. Hedtke <br />Kimberley K. Sobieck <br />Sonya J. Guggemoa <br />Jennifer L. Wolf <br />Dawit Haile <br />Nicole L. Tuescher <br />" Also admitted in Wisconsin <br />** Civil Trial Specialist <br />Certified by the Minnesota <br />State Bar Association <br />� Rea1 Property Law Specialist <br />Certi�ea by the Mimlesota <br />State B�r Association <br />The City Council recently requested our opinion regarding when its authorization is <br />required in the sale of surplus City property. Specifically, the Council wanted to know what legal <br />thresholds, in terms of dollar value, are set by (1) statutes governing cities generally, (2) statutes <br />governing city manager cities, and (3) City ordinances. <br />Statutory Cities In General <br />Every statutory city has the power to acquire and sell personal property, which includes <br />vehicles and other equipment, as the purposes and interests of the city require. Minn. Stat. .� <br />412.21 1. Generally, every contract executed on behalf of a statutory city can only be done <br />pursuant to authority from the city counciL Minn. Stat. � 412.201. <br />The term "contract" is not defined in Chapter 412. Generally, the term means an agreement <br />creating obligations that are enforceable at law, and is loosely defined as a sale or conveyance. <br />Black's Law l�ictionary 341, �'� ed. It is not required that an agreement be in writing for it to be a <br />"contract". Even when an item is sold over-the-counter, or in another casual manner, it is sold <br />under a"contract." The "contract" being the agreement to transfer ownership of the item in <br />exchange for money. Accordingly, when a city sells surplus property, those sales are being done <br />under a contract. The general law requires that city contracts be executed pursuant to authority of <br />the city council. Of course, this power can be delegated by the Council, in various different <br />manners. <br />