Title 17 . Transportation and Public Facilities

Chapter 45 . Miscellaneous Provisions

Section 333. Public auction

17 AAC 45.333. Public auction

(a) If the department makes a lease, permit, or concession available by public auction, the department will give public notice of the auction in accordance with 17 AAC 45.400 and provide a copy of the auction documents to each person who has paid an application fee under 17 AAC 45.205(a) for an application relating to the property or rights being made available, and to each person who requests a copy and pays any amount charged for the copy under 17 AAC 45.127(v) . The auction documents will state the requirements and instructions for participating in the auction.

(b) The department will set the auction date no earlier than 30 days after the date that the notice is first published or posted. The notice must include

(1) a summary of the lease, permit, or concession being made available, including the length or range of term and a description of the premises;

(2) the date, time, and place for any pre-auction conference;

(3) the date, time, and place for bidder registration;

(4) the date, time, and place for the auction;

(5) any bidder qualifications;

(6) instructions for obtaining a copy of the auction documents; and

(7) a statement that the department may amend information stated in the notice by giving further notice only to all persons of record to whom the department provided a copy of the auction documents and without additional publication.

(c) The department will make the auction documents, including a sample copy of the lease, permit, or concession to be awarded, available to the public at least 30 days before the time set for the auction. The department may charge a fee set under 17 AAC 45.127(v) for a copy of the auction documents.

(d) The department will set the minimum acceptable bid at a reasonable amount and may do one or more of the following:

(1) conduct a pre-auction conference, which the department may designate in the auction documents as either optional or mandatory;

(2) require a bid to be submitted in terms of a bonus bid or in terms of an offer of fees or rent;

(3) set minimum qualifications to be a bidder.

(e) The auction will be conducted in a reasonable manner that the department determines to be in the best interest of the state. If the department has set minimum qualifications to be a bidder, a person who is not qualified may not bid.

(f) A bidder must register at the auction and must submit a statement signed by the bidder that the bidder

(1) has not violated a provision of AS 02, 17 AAC 40 in effect before March 28, 2002, 17 AAC 42, or this chapter, which violation the applicant or requestor has not resolved to the satisfaction of the department or manager;

(2) has not violated a material term of a contract with the department, which violation the applicant or requestor has not resolved to the satisfaction of the department or manager;

(3) is not in arrears on a rental payment or other material financial obligation to the department; or

(4) is not in default of a material obligation under any lease, permit, or concession that the department has issued for any property or activity at any airport that the department owns, operates, or otherwise controls.

(g) The department will prohibit a person from bidding at the auction if, at the time of the auction, the person does not present the information required by the auction documents. The department will require written proof that a representative of a prospective bidder is authorized to bid and execute all required documents on behalf of, and as a result to bind, any corporation, partnership, joint venture, or person other than the representative. The department may prohibit a bidding agent from representing more than one person, including the agent.

History: Eff. 3/28/2002, Register 161

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.070

AS 02.15.090