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2�3= Oral Communications (continued) Dinkin said he could find no evidence of the City Council making the decision to prohibit employee participation. City Manager fales advised that RESOLUTION NO 7909 adopted on October 24, 1977 declaring certain property surplus and approving auction includes the sect�on prohibiting employees from parti- ' cipating in bidding. Mr. Fales read the cortmnunication to him � from Director of Finance Ference dated November 28, 1977 re- garding the auction and describing potential conflict. Discussion followed and Assistant Finance Director Higginbotham commented and repl�ed to questions concerning the propriety of employees being permitted to participate in auction of City surplus property, the fact that some other cities do not exclude employees, whether or not the prohibition is enforceable, the fact that the auction takes place in public and sale is made to the highest bidder; the City's arrangements with the auctioneer who is on contract with the City; and the desire of Council to be fair to employees MOTION Title having been read, Councilman Norris introduced the following resolution and moved, seconded by Councilman Biagi, its adoption RESOLUTION N0. 7938 AMENDING PARAGRAPH 2 OF RESOLUTION NO 7907, DECLARING CERTAIN DESCRIBED CITY-OWNED PROPERTY SURPLUS AP�D AUTHORIZING SALE THEREOF AT PUBLIC AUCTION ' Discussion followed concerning the possibility of prohibiting employees from participating in auctions where sealed bids are invited. City Attorney Schricker advised that notice has been published for the auction to be held on December 3, 1977 which includes the advice that employees may not participate, noting that if ' the sale proceeds, bid awards may be sub�ect to being held illegal, or the sale could be readvertised in order to avoid such exposure by the City. Mr Fales advised that he would not consider proceeding and exposing the City to possible litigation but would delay the auction and readvertise. The resolution was adopted on the following roll call vote Ayes Counc�lmen Biagi, Norris, Rhodes, Vega Noes: Councilman Bury, Vice Mayor Barrett Ad�ournment City Manager Fales advised that the City has today received a com- municat�on from the federal government which will make it necessary to extend the period for receiving bids on the Economic Development , Administration Grant Pro,7ect and that it will therefore be necessary � to meet on Friday, December 2 to consider the award of contract rather than on November 30 as orig�nally expected He noted that tne daadline date for corrnnencement of the Pro�ect has not changed. -10- Reg.Mtg , 11/28/77