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informing the~Fixed Asset Manager of any transfers, to another department or to surplus for disposal/auction or if any item is no longer utilized and might be useful in another department. Any time a d~partment wishes to transfer a fixed asset to another department, or to surplus, a transfer form (See Appendix "Elf) must be completed. The basic information needed for each asset is the original department location, description, serial number, fixed asset number, destination department/surplus and date of transfer. This form should be submitted to the Fixed Asset Manager so that fixed asset records can be updated. 3. Disposal of Fi~ed Assets A unit may not dispose of an asset which continues to have a public purpose. Under the North Carolina Constitution, it is generally unconstitutional for local governments to dispose of property for less than its fair market value. A gift of property or a sale at well below market value constitutes the granting of an "exclusive privilege or emolument" to the person receiving the property, which is prohibited by Article 1, Section 32 of the Constitution. Most of the procedures by which a local government is permitted to sell or otherwise dispose of property are competitive, and the NC Supreme Court has indicated that the price resulting froIl) an open and competitive procedure will normally be considered appropriate unless strong evidence indieates that it is so significantly below market value as to show an abuse of discretion. It is not always constitutionally necessary that a local government receive any monetary consideration when it conveys property. A contract with the receiving party to put the fixed asset to some public use constitutes sufficient consideration for the conveyance. (The receiver is usually, but not always, another government) G.S. 153A-176 provides that a local government may lease, sell, or convey with or without monetary consideration, land or interest in land to a volunteer fire department or to a volunteer rescue squad for the purpose of constructing or expanding volunteer fire department or rescue squad facllities. G.5. 143A-176 provides that "whenever a county is authorized to appropriate funds to any public or private entity which carries out a public purpose, the county may, in lieu of or in addition to the appropriation of funds, convey by private sale to such an entity any real or personal property which it owns.1f G.S. 153A-176 sets out three competitive methods of sale, each of which is appropriate in any clrcumstance: sealed bid, negotiated offer and upset bid, and public auction. Privately negotiated exchanges of property are also permitted, so long as property of equal value is exchanged between two governmental entitiesi and, privately negotiated sales or other disposition of property is permitted when the property is valued at $30,000 or less. In undertaking any of them, a local government must remember that the statutory procedure must be exactly followed or the transaction risks invalidation by a court. 1. Advertisement for Sealed Bids: a. The same rules apply as in purchasing (G.S. 143-129) b. There is one modification for real property. An advertisement for sealed bids must be published in a newspaper having general circulation in the local government's area not less than 30 days before the date fixed for opening bids. (Publication must occur 10 days before the bids are opened if only personal property is being sold) The advertisement should generally describe the property, tell where it can be examined and when and where the bids will be opened, state that a five percent (5%) bid deposit is required and will be retained if the successful bidder fails to consummate the contract, and reserve the boards' right to reject any and all bids. Bids must be opened in public and be recorded in the board's minutes. The award should be made to the highest bidder. 2. Negotiated offer, advertisement and upset bids: a. The governing body may solicit or receive an offer to purchase property. b. The offeror must make a deposit of five percent (5%) of the amount offered to be considered by the unit. c. The offer must be advertised ten (10) days before the sale is consummated. The advertisement should include a notice that within ten (10) days any person may raise the bid by not less than ten percent (10%) of the first one thousand dollars ($1,000) and five percent (5%) of the remainder. This additional bid is referred to as an "upset bid". F-b 24