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Subjects › Legal › Sale of Surplus City Property
Updated 01/2005

Sale of Surplus City Property

Cities and towns frequently need to sell or convey equipment or property which is no longer needed for municipal purposes. There are relatively few statutes concerning procedures for sale of surplus property. Cities and towns should be familiar with those listed in the Statutes section (under "Reference Sources" below), and you should keep these points in mind:

  1. Prior to sale, always determine the fair market value of the item to be sold. If you sell it for less, you may be violating Article VIII, 7 of the state constitution, the "gift clause." But see RCW 39.33.010, listed in the Statutes section (under "Reference Sources" below).
  2. Hold a public hearing, if required by RCW 39.33.020 or RCW 35.94.040, listed in the Statutes. AGO 1997 No. 5 concludes that the public hearing requirement in RCW 39.33.020 only applies to intergovernmental transfers of property.
  3. Pass a resolution declaring the property to be surplus, and specifying how the property is to be sold, or delegating that task to a particular administrative official.
  4. Proceed with sale as required by the town or city council, or in any commercially reasonable way. Sale can be by auction, private sale, sealed bid, through a broker or agent, etc.
  5. Keep in mind that city officials and certain administrative officers may be restricted from purchasing surplus property due to conflict of interest concerns. The general rule is that those who are involved in the decision to surplus property (the council) and those in charge of administering the sale (mayor, city manager, or other city officer responsible for the sale) should not purchase the property. General city employees can purchase surplus city property.
  6. Consider adopting policies concerning sale of city property. See the Documents section, below.

Reference Sources

Documents--Code Provisions and Policies