§ 65-05 — Commission Procedures for Holding a Sealed Bid Sale

§ 65-05 Commission Procedures for Holding a Sealed Bid Sale.

(a) Notice of the Sale. Sealed bid sales and any postponements of these sales will be publicized as required below. (1) Publication of Sealed Bid Sale. The Chairperson will publicize each sealed bid sale by placing an announcement in the City Record for five consecutive days, beginning at least thirty days prior to the deadline for bidding. The announcement will include the following: (i) The date and time on which bids are due; (ii) The number of Medallions to be sold; (iii) Whether those Medallions will be sold as Independent Medallions, Minifleet Medallions, Accessible Independent Medallions, Accessible Minifleet Medallions, Alternative Fuel Independent Medallions, or Alternative Fuel Minifleet Medallions; (iv) The numbers of Minifleet and Independent Medallions to be sold; (v) The percentage of highest non-winning bids that will determine the Reserve Status class for each type of Medallion to be sold; and (vi) Other terms of sale. (2) Publication of Postponements. The Chairperson has the ability to postpone the public sale. The Chairperson will place an announcement of the postponement in the City Record for five consecutive days, beginning at least ten days prior to the new deadline for bidding. (3) Additional Notices. The Chairperson can place additional notices in the City Record or other publications. (b) Pricing. (1) The Chairperson will set a minimum upset price for Medallions to be sold. (2) The Chairperson will establish different upset prices for each type of Medallion sold. (3) A minimum upset price will be published in the City Record at least ten days prior to the deadline for submission of bids. (4) Any bid received that is less than that minimum will be rejected as non-responsive. (c) Bid Opening. (1) The Chairperson will set a date when the bids will be opened in public and the winning bids announced at the public sale. (2) The winning bids will be the highest bids that are complete and responsive as established in 35 RCNY § 65-06. (3) The winning Bidders will be notified promptly by certified mail. (4) Tie bids will be decided with a drawing, which will be held at the bid opening. This process will also be used to determine tie bids that qualify for Reserve Status. (5) Winning bids will be published in the City Record and posted at the Commission's office and on the Commission's website. (d) Reserve Status Bids. (1) The Chairperson will determine the number of the highest, non-winning bids that will be given Reserve Status for each type of Medallion sold. This number will not be less than ten percent of the total number of Medallions of that type being sold. (2) The holders of the highest non-winning bids that have been given Reserve Status will be notified of their Reserve Status. (3) Reserve Status may be converted to a winning bid if a winning Bidder fails to comply with the Closing Deadlines established in this Rule. (4) The Chairperson will notify the holder of a Reserve Status Bid when that status changes to a winning bid. The date of notification will be the date of the bid opening for purposes of calculating the holder's deadlines under this Subchapter. (5) The Chairperson will hold a drawing at the bid opening to determine which bids will be given Reserve Status if there are more bids at the lowest bid price qualifying for Reserve Status than set by the Chairperson. (6) A winning Bidder for any Lot that fails to comply with the Closing Deadline requirements will be disqualified from Reserve Status. (e) Assignment of the Winning Bid. (1) The rights of a winning Bidder can only be assigned prior to the close of sale by a winning Bidder who is a Business Entity Person to a Business Entity. (2) The rights of a winning Bidder may not be assigned to any Business Entity if any Business Entity Person of that Business Entity did not comply with the Closing Deadline requirements associated with a winning bid on any higher priced Lot.