(1) There is hereby created a list to be known as the surplus property list, the same to be maintained by the City Property Manager, upon which are specifically or categorically described items of real and personal property which the Municipal Council, by resolution, has approved for sale, trade, encumbrance or other action divesting Provo City of an ownership interest.
(2) Before a significant parcel of real property is placed on the surplus property list, reasonable notice of the proposed disposition shall be provided at least fourteen (14) days in advance to allow an opportunity for public comment on the proposed disposition. For purposes of this Subsection:
(a) “Reasonable notice” means:
(i) Posting notice of a proposed disposition in at least three (3) public places within the City; and
(ii) Publishing the notice in the newspaper of general circulation in the City.
(b) “Significant parcel of real property” means a parcel of real property owned by the City with a reasonable value equal to or greater than one million dollars ($1,000,000.00).
(3) Surplus real property shall remain on the surplus property list until disposed of, unless the resolution to surplus the property expressly provides otherwise or the Municipal Council later acts to remove the real property from the surplus property list.
(4) Unless otherwise provided by resolution, personal property upon the surplus property list is approved by the Municipal Council for sale, and shall be sold by public auction conducted in a commercially reasonable manner, with the time and place of auctions being as directed by the Mayor. All personal property with a value of two thousand dollars ($2,000.00) or less is excluded from provisions of this Section and may be disposed of at the discretion of the Mayor.
(5) Unless otherwise provided by resolution, real property upon the surplus property list is approved by the Municipal Council for sale and shall be sold for cash for:
(a) Not less than the purchase price originally paid by Provo City; and
(b) Not less than ninety percent (90%) of fair market value, with fair market value being determined by:
(i) Not less than one (1) certified real estate appraiser if the fair market value is determined to be less than two hundred fifty thousand dollars ($250,000.00); or
(ii) Not less than two (2) certified real estate appraisers, if the fair market value is determined to be two hundred fifty thousand dollars ($250,000.00) or more.
(c) Subsections (5)(a) and (b) of this Section shall not apply to exempt properties with a value of fifty thousand dollars ($50,000.00) or less as set forth on the surplus property list. The general terms of sale, which shall not be inconsistent with a cash sale at fair market value as provided above, shall be within the discretion of the Mayor.
(6) Property placed upon the surplus property list for purposes of sale, trade, encumbrance or other action divesting Provo City of an ownership interest shall be acted upon by the Mayor consistent with the provisions of the resolution placing the property upon the surplus property list.
(7) Notwithstanding other provisions of this Section, the Mayor may without prior approval enter into written contracts to sell, trade, or take other action divesting Provo City of an ownership interest, with respect to property which is not on the surplus property list, but such a contract shall expressly provide that it shall not be effective until approved by the Municipal Council. Such a contract shall not be effective until it has been expressly approved by a written resolution of the Municipal Council and when so approved such a contract may contain any reasonable terms or conditions not otherwise inconsistent with law.
(8) Sales of real properties with a value under twenty-five thousand dollars ($25,000.00) are exempt from the provisions of this Section and may be disposed of at the discretion of the Mayor.
(9) The Mayor shall provide to the Municipal Council an annual report, no later than the first Council meeting in the month of December, detailing all real properties sold, traded, encumbered or divested by the administration over the past year, which report shall contain:
(a) Property names and addresses;
(b) The approximate size of each property;
(c) The acquisition amount paid for each property and acquisition date;
(d) Surplus date;
(e) All appraisals and estimates, if any;
(f) The consideration received in the sale of each property;
(g) The names of buyer(s) involved in each transaction; and
(h) The date of sale.