N.J. Admin. Code § 19:9-2.6

Current through Register Vol. 56, No. 11, June 3, 2024

Section 19:9-2.6 - Sale of surplus property

(a) The purpose of this section is to establish and prescribe uniform general rules and procedures for the sale of surplus personal property and real property owned by the Authority at the highest possible price and to provide for the electronic solicitation of bids where doing so is likely to be advantageous to the Authority. No such sale shall be made except in accordance with this section.

(b) Disposition of surplus real property shall be as set forth in this subsection.

1. From time to time, or in response to a request, the Law Department, in consultation with other Authority departments, may undertake a review of real property owned by the Authority in order to make an initial determination whether such real property may no longer be necessary for the operations of the Authority and may, therefore, potentially be classified as surplus real property. In making such a determination, one or more of the following factors may be considered:

i. The date when, and the circumstances under which, the property ceased to be useful for the purpose for which it was initially acquired by the Authority;

ii. The present use and the possible prospective use(s);

iii. Whether the terms of acquisition of the property included any impediments to its sale, such as easements, licenses to cross, or other encumbrances; and

iv. The property's estimated market value.

2. Upon such an initial determination that real property may be classified as surplus, the General Counsel or his or her designee shall request certifications from the following persons stating that the real property, to the best of their knowledge, may properly be categorized as surplus property and is no longer needed by the Authority and is surplus to its needs: the Authority's Director of Maintenance, the Authority's Director of Operations, the Authority's Chief Engineer, the Authority's General Engineering Consultant, and the Authority's Chief Information Officer. If appropriate, the above persons shall so certify as requested by the Law Department. In the alternative, if the property may not be properly categorized as surplus, the above persons shall so indicate and advise the Law Department that the property shall not be declared surplus.

3. No real property may be sold or otherwise disposed of by the Authority without issuance of all of the certifications set forth in (c)2 above, and a determination by the Authority that the real property is surplus to its needs.

4. An appraisal or administrative determination of value, as deemed appropriate by the General Counsel or his or her designee, shall be obtained by the Authority in order to determine the fair market value of the surplus real property.

5. Surplus real property shall be disposed of only after public advertisement for competitive bids in accordance with (e) below, except for those dispositions set forth in (b)5i through vii below, which shall be exempt from the public bidding requirement:

i. Disposition to a public or governmental entity, including, but not limited to, any political subdivision, agency, department, commission, board, authority, or body corporate and politic of the State of New Jersey, any county or municipality of the State of New Jersey, any public entity or authority of the United States or any department or agency thereof, or any public utility, as defined by N.J.S.A. 48:2-13a;

ii. Disposition of surplus real property, or any interest therein, having a fair market value of $50,000 or less;

iii. Disposition to a not-for-profit entity organized under Title 15A of the New Jersey Statutes that will maintain the surplus real property solely for public purposes;

iv. Disposition of surplus real property that, at the discretion of the Authority, has been determined to be landlocked (that is, lacking access to a public road), undersized (and, therefore, not developable pursuant to applicable laws or ordinances), or severely impaired;

v. Disposition to an adjacent property owner, provided that the surplus real property being sold is less than the minimum size required for development under the municipal zoning ordinance and is without any capital improvement thereon, except that when there is more than one interested owner of real property contiguous thereto, the surplus real property shall be sold to the highest bidder from among such owners, with the requirement that the highest bidder is required to purchase the entire surplus parcel;

vi. Disposition to effect a swap of the surplus real property for other property that the Authority wishes to acquire in furtherance of a highway project; or

vii. When the Executive Director determines that the character or condition of the real property or unusual circumstances make it impractical to advertise publicly for competitive bids.

6. Prior to disposition of surplus real property that does not fall under one of the exceptions set forth in (c)5ii through vii above, the Authority shall contact the appropriate public and governmental entities, as set forth in (c)5i above, that may have a reasonable interest in the surplus real property to inquire whether such entities wish to purchase such property. The Authority shall allow such entities a reasonable time, not less than 14 days, to respond before publicly advertising the real property for bids. If more than one public or governmental entity makes an offer to purchase the surplus real property, the Authority shall accept the offer that best serves the interest of the Authority and the public interest.

7. If, after advertising and public bidding of surplus real property in accordance with (e) below, bid prices for surplus real property are not deemed reasonable or acceptable to the Authority or no bids are received, the Authority may negotiate the sale of such surplus real property with any interested purchaser, or may list the surplus real property for sale with a real estate broker, with the understanding that approval of the sale by the Authority must be obtained prior to closing.

(c) Disposition of surplus personal property shall be as set forth in this subsection.

1. In response to a request from a department or through periodic reviews of personal property undertaken by the Procurement and Materials Management Department, in consultation with other Authority departments, certain personal property may no longer be necessary for the operations of the Authority and, therefore, will be classified as surplus personal property.

2. No personal property may be sold or otherwise disposed of by the Authority without a determination by the Executive Director, as recommended by the Director of Procurement and Materials Management, that such personal property is surplus to the Authority's needs.

3. All sales of surplus personal property where the aggregate anticipated proceeds exceed $2,500 shall be made only after public advertisement for competitive bids in accordance with the procedures set forth in (e) below, unless one of the following circumstances is met:

i. The surplus personal property is sold with the assistance of the State of New Jersey, Department of the Treasury, using the procedures set forth for the disposal of surplus personal property owned by the State of New Jersey;

ii. The surplus personal property is sold using a website that, in the determination of the Director of Procurement and Materials Management, will allow the Authority to reach the widest audience and obtain the most favorable price for the surplus personal property; or

iii. The Authority specifically provides by resolution that the requirement of public advertising be waived as to a particular transaction.

4. If, after advertising and public bidding of the surplus personal property, or if, after an attempt at sale of the surplus personal property under (d)3 below, bid prices are not deemed reasonable or acceptable to the Authority or no bids are received, the surplus personal property may be traded in, scrapped, or sold to any interested purchaser, including sale through an agent or liquidator who specializes in such sales, or may be donated by the Authority to a not-for-profit, public, or governmental entity.

(d) Public bid procedures for sales of surplus real property and surplus personal property shall be as follows:

1. Advertisements for competitive bids shall be placed in an appropriate newspaper(s) or journal(s) having a large circulation in the State, posted on the Authority's website, the State of New Jersey's website, and/or by any other means reasonably approved by the Authority or required by applicable law. Such advertisements shall be published in sufficient time to allow inspection of the property being sold prior to the date upon which the bids are to be received and opened.

2. All advertisements must contain:

i. A brief description of the surplus real or personal property to be sold;

ii. Notice of the place or electronic location where quotation forms, terms, and conditions may be obtained together with a provision that the Executive Director may reject any or all bids;

iii. The place, date, and time when the bids shall be publicly opened; and

iv. A minimum bid price.

3. In addition to advertising, when required, bids may be solicited in writing from known interested parties by e-mail, regular mail, or by any other means. Such solicitations shall provide prospective bidders with at least the same information contained in the public advertisement.

4. In the event that amendment of any pertinent information supplied prospective bidders becomes necessary, a written addendum shall be publicized on the Authority's website at least five days prior to the public opening of the bids.

5. In the case of surplus real property offered for bid, a prospective bidder shall be responsible for conducting its own due diligence to determine the condition of the property. The Authority shall make available any back title reports in its possession with respect to the property at the time, place, and location set forth in the bid advertisement, but without any representation by the Authority as to their accuracy or completeness, it being understood that the surplus real property is being sold "as is, where is, and with all faults," without any representation, warranty, or assurances of any kind.

6. In the case of surplus personal property, prospective bidders may be invited to inspect all items available for sale at a designated Authority site(s).

7. All bids shall:

i. Be properly submitted on the Request for Bid Form; paper bids shall be properly signed and executed, and electronic bids shall be certified; and

ii. Be submitted on or before the time fixed for the public opening in accordance with the bid specifications.

8. Any bids received after the bidding has been closed shall not be opened.

9. The Director of Procurement and Materials Management or his or her designee shall open and publicly read the bids.

10. The Director of Procurement and Materials Management may, at any time prior to the scheduled public opening, postpone the receipt and opening of bids. Appropriate and timely notice of such postponements shall be given to all prospective bidders, if possible.

11. The Bid Summary Form shall record all bids timely received whether complying with all formalities or not; due note shall be made on the bid summary form with respect to any bid which did not comply with formalities.

12. Bids shall be accompanied by a deposit equaling 10 percent of the total submitted price. Such bid deposit shall be submitted in the form of a cashier's check or executed money order payable to the "New Jersey Turnpike Authority." Failure to comply with this provision shall result in rejection of the bid. Bids of less than $100.00 shall require no bid deposit.

13. Bidders for surplus real property shall submit with their bids an executed contract in the form approved by the Authority offering to purchase the surplus real property for the bid price pursuant to the terms set forth in the contract.

14. All bid deposits of unsuccessful bidders shall be returned promptly. The deposits furnished by successful bidders shall be retained and applied toward payment of the total bid price.

15. Any correction of an entry made on the Request for Bid Form or Quotation Form is to be initialed by the party signing the bid.

16. Bidders may withdraw bids, or withdraw and resubmit bids, at any time prior to the scheduled time of the public opening. A duly authorized representative of the bidding firm must sign for the withdrawal of bids submitted as paper bids. Paper bids so withdrawn shall be returned to the bidders unopened. Electronic bids may be withdrawn pursuant to the electronic bidding procedures set forth by the Authority. Any bid that is received by the Authority at the date and time established for bid opening will be deemed to have been submitted intentionally.

17. With respect to bids submitted, the Authority retains the right to reject any or all bids and to waive informalities and minor irregularities.

(e) The following general terms and conditions apply to the sale of surplus real property and surplus personal property:

1. The sale of surplus personal property to the highest acceptable bidder shall not be confirmed without the prior written approval of the Executive Director or his or her designee. The sale of surplus real property to the highest acceptable bidder shall not be confirmed without the approval of the Board.

2. When in the best interest of the Authority, one or more items of surplus personal property or parcels of surplus real property may be withdrawn from the offer to sell. Such action is to be accomplished by memorandum of the Director of Procurement and Materials Management and approved by the Executive Director.

3. Pursuant to N.J.S.A. 52:13D-19, no Authority officer or employee, either himself or herself, or by his or her partners or through any corporation which he or she controls or in which he or she owns or controls more than one percent of the stock, or by any other person for the officer or employee's use or benefit or on the officer or employee's account, may bid on or otherwise purchase any surplus real property or surplus personal property of the Authority without prior written approval of the State Ethics Commission.

4. For surplus personal property, the balance of the bid price is due within 15 calendar days after the bidder's receipt of notice of the award. If such balance is in the amount of $100.00 or more, payment shall be made by cashier's check, executed money order, or such other lawful method of payment as may be approved by the Director of Procurement and Materials Management. Failure to pay such balance or to pick up the awarded property within the 15-day period shall entitle the Authority to retain the bid deposit as liquidated damages and not as a penalty, as the amount of damages to the Authority resulting from such breach would be difficult, if not impossible, to determine and retention of the deposit would be justified. Under such circumstances, with the approval of the Executive Director, or his or her designee, the Director of Procurement and Materials Management may sell the property to the next highest bidder, or otherwise dispose of the property in accordance with this section. This action is to be accomplished by a memorandum of the Director of Procurement and Materials Management, approved by the Executive Director or his or her designee, with copies to the Law and Finance Departments.

5. For surplus real property, the balance of the bid price shall be paid by the successful bidder by cashier's check, executed money order, or such other method of payment as may be approved by the Executive Director or his or her designee within the time set forth in the contract. Installment sales are not permitted. Title to the surplus real property shall be transferred to the purchaser when full and final payment of the approved bid price is made, or as otherwise agreed in writing between the purchaser and the Authority. The contract of sale shall require that the purchaser's failure to pay the balance of the purchase price as specified by the Authority or failure to take title or abide by any other term or condition of the contract shall result in a cancellation of the sale and a forfeiture of the bid deposit to the Authority, as liquidated damages and not as a penalty, as the amount of damages to the Authority resulting from such breach would be difficult, if not impossible, to determine and retention of the deposit would be justified. Upon such cancellation, the Authority may accept the bid of the next highest qualified bidder or, if none exists, otherwise dispose of the surplus real property in accordance with this section.

6. Unless specifically stated otherwise in the solicitation, the property upon which bids are invited is for sale only "as is, where is, and with all faults" and the Authority makes no representation, express or implied, as to the condition of said property. The surplus personal property items sold are to be removed at the buyer's expense.

7. Where there is a reserve or other minimum price for an item or items offered for sale below which bids will not be accepted by the Authority, all prospective bidders shall be so advised by proper notation on the related quotation form.

8. Qualified bids, or any portion thereof, may be summarily rejected in writing by the Director of Procurement and Materials Management to the Executive Director, with copies thereof directed to the Law and Finance Departments, where such qualification adversely affects the Authority's best interest.

9. The procedure for handling tie bids shall be the same as that set forth at 19:9-2.2 except that all determinations shall be made on the basis of the highest responsive bid price.

N.J. Admin. Code § 19:9-2.6

Amended by 49 N.J.R. 3236(b), effective 9/18/2017