When any real property of the city has been declared surplus pursuant to the provisions of this article, the city manager shall then have the property appraised by a competent appraiser and the appraised value thereof determined. The city manager shall require the party requesting such declaration of surplus property to deposit with the city secretary a sum of money necessary to cover the cost of appraisal and any advertising expenses that may be incurred as required by this article. In the event the requesting party is not the highest bidder on the surplus real property, the deposit will be returned. In the event the requesting party is the highest bidder, said deposit will be credited toward the accepted bid. In the event the surplus real property is not sold, said deposit shall be forfeited to the city.
(2000 Code, sec. 2-102)
(a) 
Notice of sale.
The notice of surplus real property for sale shall be given by the city manager by publishing the same in a newspaper of general circulation in the city at least once for two (2) successive weeks, the first notice to be published at least fourteen (14) days prior to the date the bids are to be received. The notice shall also notify all prospective bidders that the city council reserves the right to reject any and all bids.
(b) 
Advertisement for bids; waiver of certain fees.
The city manager shall advertise for sealed bids offering the declared surplus real property for sale to the highest bidder, but the notice shall notify all prospective buyers and bidders that no bid will be received, accepted or entertained that is less than the appraised value, together with the costs incurred, which shall include the appraisal fee and advertising costs. The notice shall state what the appraised value is, what the appraisal fee was, and the advertising cost incurred, and no bid under the value plus cost will be accepted or entertained. The city council, by a simple majority vote of those present and voting, may forego the inclusion of appraisal fees and advertising cost in the minimum bid.
(2000 Code, secs. 2-103, 2-111)
(a) 
Preparation.
After bids have been advertised for any surplus real property of the city, the city attorney shall prepare a sales contract with the provisions pertaining to the sale to be contained therein, except for the consideration to be paid.
(b) 
Limitations or exceptions in deed.
Wherever there are limitations and exceptions to be retained in the deed or referred to in the deed as to the title of the tract of surplus real property to be conveyed under the provisions of this article, the same shall be referred to in the contract of sale.
(c) 
Evidence of title.
The contract of sale for the surplus real property may provide for furnishing the purchaser with an abstract of title showing good and marketable title, or with title insurance for the amount of the purchase price, whichever is the most desirable in the opinion of the city attorney.
(d) 
Distribution.
The city secretary shall have the proposed contract of sale for the surplus real property reproduced in sufficient numbers to furnish one copy of the same, which is to be entered into between the city and the successful bidder, to any person interested in bidding upon the property.
(2000 Code, secs. 2-104, 2-105, 2-109, 2-110)
(a) 
Required.
All bidders for surplus real property offered by the city shall be notified in the notice that their bid must be accompanied by a cashier’s check or certified check payable to the city for at least ten percent (10%) of their bid.
(b) 
Forfeiture.
The notice of city surplus property for sale shall notify all prospective bidders that, if the bid is accepted, the check payable to the city will be held and forfeited to the city in the event that the bidder fails to comply with the terms and provisions of the sales contract in the event that his bid is accepted.
(c) 
Return of rejected checks.
All checks received with bids for city surplus real property that are rejected shall be returned to the bidder.
(2000 Code, secs. 2-106–2-108)
When the highest bid for cash is accepted by the city council, the surplus real property shall be conveyed pursuant to an ordinance passed by the city council authorizing the mayor to sell and convey said property for the cash consideration agreed upon.
(2000 Code, sec. 2-112; Ordinance adopting Code)
Whenever it is determined by the city council that any property owned by the city should be leased for a term of time in excess of a lease from month to month, or for one month at a time, the same procedure prescribed for the sale of city property shall be followed, with the following variations:
(1) 
The terms of the lease shall be prepared and the lease agreement shall be prepared with the name of the lessee and the consideration to be paid left blank, and the same shall be filed with the city secretary in the same manner as is prescribed in this article pertaining to the contract of sale wherein property is to be sold.
(2) 
The minimum lease value per month or for the term for which the property is to be leased shall be determined by a competent appraiser, and no bid shall be accepted for the lease of said property for less than the appraised value as determined by said appraiser.
(3) 
The lease shall be prepared by the city attorney prior to advertisement for the bids as provided herein. He shall advise with the city council to determine whether or not the terms and provisions of the lease agreement are acceptable to the city council. This shall be done prior to the time that bids are advertised for.
(4) 
The advertisement for sealed bids may offer to lease the same for a single cash consideration to be paid in advance or for a monthly or annual rental to be paid in advance.
(5) 
The city council may if it so desires prescribe in the notice that a certain amount of money accompany the bid of each prospective bidder and provide that the same shall be forfeited to the city if the prospective bidder fails to enter into the lease agreement for the lease of said property pursuant to his bid.
(6) 
In the lease of said property, it is hereby prescribed to be the policy of the city council that the financial stability and character of the prospective bidder for the lease of city property for a term of years shall be considered, and the council reserves the right to reject any and all bids without question.
(7) 
These rules and regulations for the lease of city property shall also apply in all cases where city property is now leased, and said lease is terminating; however, in such cases the procedure above prescribed may be complied with prior to the termination of any present lease providing that the lease to be entered into will begin as of the date of the expiration of any lease that is in existence at the time the city council takes action in regard thereto.
(8) 
In the event of any commitments made by the city council prior to February 15, 1965, for the lease of property in regard to which said commitment is made, this section and the terms hereof shall not apply to the lease of any property in regard to which there have been commitments made prior to such date.
(9) 
In the event the city council determines it is in the best interest of the citizens to: (i) lease property located in an enterprise zone or (ii) lease property to another political subdivision, it may do so pursuant to state law.
(2000 Code, sec. 2-113)
In the event that the city council in its discretion determines that it will be to the best interest of the city to dispose of such surplus property by trading such property for other property needed by the city, then in such event the city council may authorize the mayor to make such trade and execute the necessary instruments in order to convey such property, and in such cases it is hereby declared to be the policy of the city that the provisions as to such disposal of such surplus property or for the lease of property shall not apply.
(2000 Code, sec. 2-114)
As an alternative, the city council may, after declaring that real property of the city is surplus pursuant to a resolution adopted in accordance with section 1.08.001, authorize the city manager to dispose of such real property in accordance with chapters 253 or 272 of the Texas Local Government Code or such other applicable state law.
(Ordinance 24-3760 adopted 2/27/2024)