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(a) 

(1) The General Manager shall notify the Commissioners of the intent to dispose of any properties valued over $100,000.

(2) If the WSSC granted the prior owner of the property a right of first refusal or other similar right to purchase the property if it became surplus, then the property shall be offered to the prior owner pursuant to the terms of the agreement.

(b) 

(1) The General Manager shall then notify the county in which the property is located of the availability of the property by certified letter addressed to the county chief administrative officer, with a copy to the chair or president of the county council.

(2) The General Manager shall also notify any municipal government where the property is located at the same time by certified letter.

(3) If the county is interested, it will have the first opportunity to purchase the property at the fair market value.

(4) If the county is not interested or does not indicate interest within 60 days from the date of the first letter notification, but the municipal government where the property is located indicates an interest in purchasing the property within the 60-day period of the date of the letter notification, the municipal government shall be given the opportunity to purchase the property at the fair market value.

(c) 

(1) If neither the county nor the municipal government where the property is located indicates interest within 60 days, other public agencies shall then be notified via the state clearinghouse, which will allow 30 days for such agencies to respond in writing of their interest.

(2) If one or more public agencies respond, the General Services Department shall negotiate with all interested parties in order to obtain the best value for the WSSC, which will normally be the highest price for the property, based on the appraised value of the property.

(d) Notifications to all governmental bodies shall include a statement that the property may be purchased for public use only. To meet the requirement for public use, not more than 10 percent of the available floor area ratio of the building or 10 percent of the land area may be sold or leased to a nongovernmental entity by the governmental agency acquiring the property for an amount exceeding the cost of maintaining and operating such space.

(e) 

(1) Disposition of a property to any governmental entity shall be subject to the condition that the property will revert to WSSC if the public use is discontinued.

(2) Within 60 days of the discontinuance of the public use, after any extension which may be granted for good cause, and upon request by the WSSC General Manager, a deed shall be executed transferring the property, in at least as good a condition as it was when received, back to WSSC.

(3) In the event of a conveyance, the governmental agency shall be reimbursed for the original cost of purchase.

(4) If any property that has reverted to WSSC is subsequently sold for a sales price in excess of the initial appraised value of the property, the governmental agency may be reimbursed for the cost of improvements made to the structures or property or both minus depreciation.

(f) 

(1) Appraisals shall be updated if they were completed more than 12 months before the date of the contract of sale unless the Director of the General Services Department waives this requirement based upon the circumstances of a specific sale.

(2) The WSSC reserves the right to reject a sale to a public agency based upon an appraisal if the WSSC determines that the appraisal does not accurately represent fair market value.

(3) Exchanges of property with other public agencies may be considered but must be of equivalent value.

(g) 

(1) If no public agency is interested in the surplus property or no acceptable offers are received, the General Services Department may next offer the property to adjoining property owners at the fair market value.

(2) This step shall be utilized only for properties having an assessed value of $50,000 or less, or for those properties which are determined by the General Manager to be of little or no interest to other parties. Each adjoining property owner shall be notified by certified mail of the availability of the surplus property and the value of the property.

(3) The General Services Department shall then negotiate with any and all interested parties in order to obtain the highest price for the property.

(h) 

(1) If no public agency or adjoining property owner indicates an interest in the subject property, the General Services Department shall then offer the property for public sale.

(2) The property shall be advertised for sale on WSSC’s website, and in at least one newspaper of general circulation within the Washington Suburban Sanitary District.

(3) A property can be auctioned off or exchanged for other property of an equivalent value if the General Manager determines it is in the Commission’s best interest to do so.

(4) The services of a broker may be utilized.

(5) The General Services Department shall negotiate with any and all interested parties to obtain the highest price for the property.

(6) A public agency that responds to the notice of sale to the general public shall be treated in the same manner as the other private bidders.

(i) 

(1) For properties valued at or under $500,000, the General Manager can approve the agreement for sale.

(2) For properties valued over $500,000, the proposed agreement will be presented to the Commissioners for approval.

(j) A property may be sold for less than fair market or assessed value if:

(1) There is adequate justification; and

(2) Is approved by the General Manager and the Commissioners.

(k) Once the sale is approved, the General Services Department shall:

(1) Make arrangements to complete the sale in coordination with the General Counsel’s Office; and

(2) Notify the Facilities Maintenance Division, Engineering and Environmental Services, and the Accounting Division of the settlement date.

(l) 

(1) Except as otherwise provided in subsection (l)(2) of this section, the General Services Department shall coordinate efforts to ensure all structures, personal property, and equipment on the premises are properly accounted for and removed, abandoned, or demolished.

(2) Unless it is deemed to be in the Commission’s best interest to dispose of the property with these items remaining on the property or as otherwise agreed to in a sales and purchase agreement, the Engineering and Construction Department shall coordinate with the General Services Department on any demolition work required prior to settlement.

(3) Absent unusual or unforeseeable circumstances, the removal and disposition of personal property shall be completed within the timetable agreed to by WSSC and the buyer.

(4) A timetable shall be developed for any additional work required for sale of the property according to any provisions in a sale and purchase agreement.

(m) 

(1) If there are any environmental concerns regarding a property to be sold, the Engineering and Environmental Services Division and the General Counsel’s Office shall assist the General Services Department in the resolution of any environmental matters prior to the disposition of the property and in accordance with a sales and purchase agreement.

(2) Any required work or studies relating to environmental concerns shall also be reflected in the timetable for the property.

(n) After settlement has occurred, the General Services Department will notify the General Manager and Commissioners of the disposition of the property. (Res. 2022-2312)