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H3. Resolution 5944 - Disposal of personal propertyCity of Kalispell Charles A. Harball Office of City Attorney City Attorney 201 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 TO: FROM: SUBJECT: MEETING DATE: MEMORANDUM Doug Russell, City Manager Charles Harball, City Attorney Tel 406.758.7709 Fax 406.758.7758 charball@kalispell.com Resolution No. 5944 — A Resolution Establishing Procedures for the Disposition of Unclaimed Personal Property September 16, 2019 — Regular Council Meeting BACKGROUND: Pursuant to the terms of MCA §45-5-305, the City Council passed Resolution No. 4841 on October 20, 2003, addressing the disposition of certain personal property items coming into the possession of the Kalispell Police Department. The KPD has acquired a substantial inventory of unclaimed personal property, the disposal of which is not suitably addressed under the terms of MCA §45-5-305 and Resolution No. 4841 causing the City to bear the costs and burden of extended storage of tangible personal property. In 2017 State Legislature enacted MCA §7-8-105, authorizing general powers municipalities to pass a resolution that is consistent with that statute providing for the disposition of unclaimed tangible personal property items that come into its possession. This statute provides a broader scope of unclaimed property which may be disposed and a statutory procedure for this purpose. A resolution compliant with this statute should significantly reduce the ongoing storage of unclaimed tangible personal property by the City. RECOMMENDATION: It is recommended that Council pass Resolution No. 5944 that is compliant with MCA §7-8-105. ALTERNATIVES: Council may decline to pass the resolution. RESOLUTION NO. 5944 A RESOLUTION TO ESTABLISH PROCEDURES FOR THE DISPOSITION OF UNCLAIMED PERSONAL PROPERTY ITEMS THAT COME INTO POSSESSION OF THE KALISPELL POLICE DEPARTMENT AS AUTHORIZED BY SECTION 7-8-105 OF THE MONTANA CODE ANNOTATED. WHEREAS, the City of Kalispell is a general powers city of the state of Montana and, in the course of its functions, the Kalispell City Police Department [KPD] comes into possession of unclaimed tangible personal property; and WHEREAS, pursuant to the terms of MCA §45-5-305, the City Council passed Resolution No. 4841 on October 20, 2003, addressing the disposition of certain personal property items coming into the possession of the Kalispell Police Department; and WHEREAS, in 2017 the Montana Legislature adopted and codified MCA §7-8-105 authorizing general powers municipalities to pass a resolution that is consistent with that statute providing for the disposition of unclaimed tangible personal property items that come into its possession; and, WHEREAS, KPD has acquired a substantial inventory of unclaimed personal property, the disposal of which is not suitably addressed under the terms of MCA §45-5-305 and Resolution No. 4841 causing the City to bear the costs and burden of unnecessary storage of tangible personal property; and WHEREAS, it is the desire of the City of Kalispell to establish procedures for the disposal of tangible personal property items valued at $20.00 or more pursuant to the terms of MCA §7-8-105 so that such items may be more readily removed from the inventory in the possession of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The Kalispell Police Department (KPD) shall dispose of unclaimed tangible personal property items valued at $20.00 or more and which are not otherwise addressed under Montana state law in the following manner: Any unclaimed personal property items shall be held by the KPD for a period of at least three (3) months after taking possession of the item. 2. The KPD shall make a reasonable effort to determine the legal owner of the item and to contact him or her advising of its recovery while the item remains in its possession. 3. If at any time after KPD has taken possession of a personal property item subject to this policy, an individual presents KPD with proof of legal ownership of the item, that item shall be restored to the owner. 4. For any personal property item turned over to the KPD by a "finder" who does not otherwise claim ownership of the item, the KPD will do the following: a) record the name and contact information for the "finder;" and, b) allow that person to reclaim possession of the item after holding the unclaimed personal property item for more than three months. 5. Not less than ten (10) days before the time set for disposition of the unclaimed personal property item, the KPD shall publish a notice of the planned disposition of the item in a local newspaper of general circulation. 6. After providing the required public notice, if more than (3) months have elapsed since the property came into possession of the KPD and the legal owner has not reclaimed the item or if a legal owner cannot be ascertained or contacted, the KPD may take one of the following actions with the property item: a) destroy the item, if allowed or required by local, state or federal law; b) return the item to the "finder," if applicable; c) donate the item to a nonprofit community organization; or, d) sell the item at a public auction to the highest bidder with the net sale proceeds to be deposited into the city's general fund. SECTION 2. After property has been returned, destroyed, donated, or sold at a public auction, the property or the value of the property is not redeemable by the owner or other person otherwise entitled to possession. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 16TH DAY OF SEPTEMBER, 2019. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk