Current through Register Vol. 56, No. 18, September 16, 2024
(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.
