N.J. Admin. Code § 5:34-5.8

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:34-5.8 - Sale of surplus property

(a) The sale of surplus property pursuant to N.J.S.A. 18A:18A-45 or 40A:11-36may be conducted on an electronic procurement platform either through an online public auction or through the online equivalent of a sealed bid process.

(b) An electronic procurement platform used for the sale of surplus property shall provide, at a minimum:

1. Detailed online instructions on how to use the platform;

2. A bid registration process that will reliably confirm the identity of the person or entity bidding, as well as any individuals authorized to submit bids. This registration should include full contact information, including a physical address and the logging of the IP address used to create the account;

3. The ability to upload and save onto the platform any completed forms, disclosures, and certifications that, pursuant to New Jersey law, must be submitted to the local unit;

4. Timestamping and logging of all local unit and bidder actions on the platform, including IP address;

5. The ability for prospective bidders to post questions, and the local unit to post responses thereto, in a manner visible to all prospective bidders. This shall not absolve the local unit from issuing a notice of revision or addenda as may be required pursuant to law;

6. Individual user accounts with password protected access for local unit officers and employees, wherein permitted activities on the platform can be restricted and segregated. Individual user account activity shall be archived to facilitate administrative review and investigation. The platform shall set a maximum time for inactivity before the user is automatically logged out;

7. Platform-related help desk support for prospective bidders and the local unit through the internet, email, and at least one toll-free telephone number; and

8. A standard complaint procedure concerning platform-related problems for both the local unit and bidders. The complaint procedure shall require that a complaint log be maintained, which shall be available to the local unit for inspection, along with a record of problems arising with the system and the resolution of same.

(c) The governing body of a local unit must adopt an authorizing resolution for each online sale of surplus property containing, at a minimum, the following:

1. A description of the surplus property;

2. A statement that the surplus property is no longer needed for public use and that the sale will be held on an electronic procurement platform either through an online public auction or the online equivalent of a sealed bid process;

3. The name of the electronic procurement platform;

4. For each item of surplus property that is part of a local unit's fixed asset inventory, the description of each item shall include information that sufficiently identifies the item and provides an audit trail;

5. For surplus property that is not part of the local unit's fixed asset inventory, except for motorized vehicles titled in the name of the local unit, a general description sufficient to inform the public of the item or items being sold. If RECs are being sold through online public auction, the number of RECs to be sold shall be stated in the resolution;

6. For each motorized vehicle titled in the name of the local unit, a description of each vehicle with sufficient detail to inform the public of the item being sold, along with the vehicle information number (VIN) displayed on the title;

7. If the sale is being conducted through an online public auction:

i. The date and time of the online auction. If the online auction will take place over a set number of hours or days, the resolution shall state the dates and times upon which the sale will commence and conclude; and

ii. Whether a reserve price is to be set and, if so, the amount of the reserve price; and

8. A statement that the local unit reserves the right to reject all bids if the local unit determines such rejection to be in the public interest.

(d) No single resolution shall authorize more than one online sale; however, multiple items of surplus property may be sold at a single online sale. In the resolution authorizing an online sale, the governing body may delegate, to the purchasing agent, the authority to accept or reject bids on any item where the winning bid comes in under the local unit's bid threshold.

(e) If a local unit has rejected all bids pursuant to N.J.S.A. 18A:18A-45(e) or 40A:11-36(5) and holds a subsequent public sale of surplus property, the subsequent public sale shall be authorized by the governing body in a separate resolution from the resolution authorizing the initial public sale.

(f) Advertisements of the online sale of surplus property shall continue to be published in the local unit's official newspaper pursuant to N.J.S.A. 18A:18A-45 or 40A:11-36. The advertisement shall, at a minimum, set forth:

1. A general description of the surplus property to be sold and the conditions of sale;

2. State that the public sale is being held online, and whether it will be held as an online auction or by the online equivalent of a sealed bid process;

3. Include the name of the electronic procurement platform on which the sale is being conducted, along with the website address of the platform;

4. If the public sale is being conducted through an online public auction, the date and time of the online auction. If the online public auction will take place over a set number of hours or days, the advertisement shall state the dates and times upon which the auction will commence and conclude;

5. If the public sale is being conducted through the online equivalent of sealed bid submission, the date and time by which bids must be submitted; and

6. A statement that the local unit reserves the right to reject all bids if the local unit determines such rejection to be in the public interest.

(g) An online sale shall commence not less than seven, nor more than 14, days after the date of publication of the advertisement.

(h) If the local unit is using a live auction that permits bidders the option to submit bids online, the advertisement shall, at a minimum, set forth:

1. A general description of the surplus property to be sold and the conditions of sale;

2. The time, date, and location of the auction; and

3. A statement that bidders may participate either in person or electronically, along with the website address where bidders can obtain information on participating electronically.

(i) If a local unit receives no bids for an item of surplus property at an initial public sale, and the local unit places the item up for a subsequent online auction, the local unit may set, by resolution, a "buy it now" price that, once a bidder agrees to pay, concludes all bidding. The "buy it now" price shall be no less than the estimated fair value of the item of surplus property.

(j) In the event there are no bidders, or a minimum reserve price was not met for an item, the electronic procurement platform may provide an option of continuing or reopening a sale after the close of an online public auction. The potential for this occurrence must be provided for in the agreement between the local unit and the electronic procurement platform vendor, with the provision made clear to bidders on the platform's website. In the event of a continuance or re-opening, those bidders who participated in the sale shall be notified of the new date, but the local unit is not required to publish an additional notice in its official newspaper.

(k) An electronic procurement platform vendor may collect monies from the sale of surplus property through an online public auction, deduct the commission owed, and disburse the balance of proceeds to the local unit, but only if:

1. The contract between the platform vendor and the local unit expressly provides for this arrangement; and

2. The electronic procurement platform vendor either holds the proceeds in an escrow account, or otherwise posts a surety bond, auctioneer's bond, or insurance in an amount sufficient to cover the potential loss of such funds.

N.J. Admin. Code § 5:34-5.8

Adopted by 53 N.J.R. 501(a), effective 4/5/2021