Chapter 3.40
SURPLUS PROPERTY
Sections:
3.40.030 Methods of transfer and disposition.
3.40.050 Disciplinary action(s).
3.40.010 Purpose.
(1) To set forth the City of Rio Dell’s administrative policy for the transfer and disposition of surplus property, equipment and materials.
(2) To set forth the City of Rio Dell’s administrative policy for scrapping and recycling of scrap and recyclable surplus property, equipment and materials and disposing of same.
(3) To ensure the receipt of all revenues from the disposal of surplus property, equipment and materials and scrap or recyclables.
(4) To explain disciplinary consequences which may result should an employee violate the policy and procedures set forth below. [Ord. 271 § 1, 2011.]
3.40.020 Definitions.
(1) “Surplus property” as used herein is used generically to describe any City property, equipment or material that is no longer needed or usable by the holding department. For purposes of this policy all surplus property including scrap, recyclables, trash, and/or junk disposed, discarded or abandoned on City premises, including all surplus property placed in storage or collection containers of any kind, including containers or facilities located on premises leased from the City by City tenants, is hereby deemed to be City property and not property of any City employee.
(2) The terms “scrapping” and “recycling” as used herein refer to the act of transferring discarded surplus property, including scrap or recyclables, to a vendor for use, salvage or resale.
(3) The terms “scrap” or “recyclables” as used herein refer to surplus property that (a) may be reused “as is” or after repair, or (b) may be salvaged for its mineral value after treatment or processing.
(4) The term “trash” or “junk” as used herein refers to surplus property which has no practical salvage or recyclable value.
This policy is designed to address two categories of scrapping and recycling:
(a) Management-directed scrapping, recycling and handling of trash or junk (authorized disposal).
(b) Personal scrapping, recycling or handling of trash or junk (unauthorized disposal).
(5) Employee’s Personal Property. For purposes of this policy an employee’s personal property is (a) that property in the possession of an employee which was the property of the employee prior to it having been brought onto or placed upon City premises, or (b) that property lawfully acquired from its prior owner or his/her authorized representative by an off-duty employee while on City premises after having been brought to City premises by its owner where such property remains in the possession of the employee as his or her property, after transfer to said employee. Each employee is responsible for determining that any property which he or she may take possession of or acquire while on City premises has been obtained or acquired from an individual lawfully authorized by its owner to make the transfer to the employee. [Ord. 271 § 2, 2011.]
3.40.030 Methods of transfer and disposition.
All surplus property is disposed of “as is” and “where is,” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property offered unless expressly authorized by the City Council.
(1) Transfer to Another Department. Surplus property may be transferred between City departments.
(2) Trade-In. Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property.
(3) Return to Manufacturer. Surplus property may, when possible, be returned to the manufacturer for buy-back credit.
(4) Disposal. Surplus property may be offered for sale by the City. Appropriate methods of sale are as follows:
(a) Auction. Surplus property may be sold at public auction. Auctions may be conducted by City staff, or the City may contract with a professional auctioneer or electronic auction site.
(b) Sealed Bids. Sealed bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner shall be sold to the highest responsible bidder.
(c) Selling for Scrap. Surplus property may be sold as scrap if the City deems that the value of its parts exceeds the value of the surplus property as a whole.
(d) No Value Item. Where the City determines that property is surplus and of minimal value to the City due to spoilage, obsolescence or other cause or where the City determines that the cost of disposal of such property would exceed the recovery value, the City shall dispose of the same in such a manner as they deem appropriate and in the best interest of the City.
(5) Donation. Surplus property may be donated to any other public agency or charitable organization exempt under Section 501(c)(3) of the Internal Revenue Code. “Public agency” means the State or any agency or subdivision thereof, any city, county, special district, or school district. [Ord. 271 § 3, 2011.]
3.40.040 Policy.
Consistent with California Government Code Section 37350 the City Council sets forth the policy of the City for disposal or destruction of surplus property.
(1) City Manager Directed Transfer and Disposal (Authorized).
(a) Property with an Estimated Market Value Exceeding $10,000. Transfer or disposition of surplus property with an estimated market value exceeding $10,000 per item shall be determined specifically by the City Council.
(b) Property with an Estimated Market Value Less than $10,000. The City Manager may direct the transfer and disposition of surplus property with an estimated market value not to exceed $10,000 per item.
(c) Transfer and disposition of surplus property may include:
(i) All surplus property will first be considered for transfer between departments for the benefit of the City of Rio Dell.
(ii) All surplus property not needed by the City of Rio Dell may be offered for sale for the highest estimated market value. Surplus property may be sold by public auction, electronic auction site, or sealed bid.
(iii) Surplus property may be donated or sold as less than estimated market value to public agencies and nonprofit organizations.
(d) Scrapping/Recycling/Junking.
(i) Such activities may involve the sale of surplus property at public auction or through sealed bids to public bodies, organizations, or vendors including scrap dealers or recycling centers.
(ii) It is the policy of the City of Rio Dell that no employee may engage in any sale, scrapping or recycling or other disposal of City property, as defined herein, unless specifically directed to engage in such activity by the City Manager who has been lawfully and duly authorized and designated to direct such activity.
(e) Real Estate. All activity involving the declaration and sale of surplus real estate shall require authorization by the City Council regardless of the actual or estimated value.
(2) Proceeds from Transfer and Disposition of Property. When so authorized to transfer, sell, donate, recycle, and scrap City property, the employee directed to undertake such activity shall remit the entire proceeds from any such activity to the City by check or money order made payable to the City of Rio Dell, and shall be deposited into the appropriate fund.
(3) Personal Scrapping, Recycling or Disposal of Trash or Junk (Unauthorized). Transferring, selling, donating, scrapping, recycling or disposing of City property, as defined herein (regardless of monetary value), by City employees for personal gain or to benefit the interest of any person or party other than the City of Rio Dell, including handling or disposal of trash or junk except as directed by City management person(s) lawfully and duly authorized and designated to direct such activity, is strictly forbidden.
City employees are prohibited from claiming ownership of, giving away, recovering, or salvaging for personal use, or the use or interest of any person other than the City of Rio Dell, any materials abandoned, disposed or stored upon City premises, including trash or other materials, placed in, upon or in the vicinity of recycling or collection cans, dumpsters or bins located on City premises, or collection or debris piles, or other City storage or disposal facilities or refuse sites, and including any such facility or site belonging to any City tenant. Furthermore, City employees are prohibited from taking possession of any surplus property or the proceeds from the sale of surplus property designated for disposal as trash, scrap, or as recyclables, except as lawfully authorized by persons designated with such authority by the City Manager. This prohibition includes giving any such surplus property or the proceeds from the sale of such surplus property to any person or party other than for the duly authorized benefit and interest of the City of Rio Dell, or authorizing any other person or party to accept, receive or take any such surplus property to benefit their own interest, except as provided hereinabove.
(4) Any transfer and/or disposal of surplus property authorized by the City Manager shall be reported to the City Council as a receive and file item on the City Council agenda. [Ord. 271 § 4, 2011.]
3.40.050 Disciplinary action(s).
Appropriate disciplinary action, up to and including termination, will be taken should an employee be found, through proper investigation, to:
(1) Have failed to promptly remit to persons officially designated to receive proceeds, including cash or other consideration, from the sale of City property, as defined herein, including the proceeds from the sale, scrapping or recycling of any such property belonging to City tenants; and
(2) Have failed, in the performance of their duties, to promptly place in appropriate City containers, bins, dumpsters, or other collection facilities, equipment or containers, or have received, taken, given away, collected, stored or retained in other than appropriate City containers, bins, or collection facilities, or dump sites, City scrap, recyclables, trash or any such surplus property belonging to City tenants; and
(3) Have engaged in selling, scrapping, recycling or handling of City property in violation of this chapter or the procedures set forth herein, including having engaged in any such activity for their personal interest or gain, or in aid of others doing the same for their respective interest or gain; and
(4) Have used City vehicles, facilities or equipment to collect, store, or transport surplus property to sites, locations, or facilities, including the facilities of scrap vendors or recycling centers, except as specifically directed by authorized City management, in accordance with this chapter and the procedures set forth herein; and
(5) Have failed to notify his/her department director in a prompt and timely manner after having observed any individual engaging in any of the above-described act(s) or having learned that such act(s) were being committed by other City employees. [Ord. 271 § 5, 2011.]
3.40.060 Procedures.
All surplus property is disposed of “as is” and “where is,” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property offered unless specified by the City Council. It is critical to maintain a trail of documentation for audit purposes regarding the disposition of property of the City of Rio Dell.
The City Manager or his/her designee is authorized to declare property, equipment and materials surplus.
(1) Identifying Excess Property. Each department head is responsible to identify excess property regularly.
Each department head will evaluate the operational status of the excess property and notify the City Clerk in writing.
The City Clerk will circulate the excess property notification between the other departments within the City.
(2) Transfer Excess Property between Departments. Department heads may request the transfer of excess property by making request to the City Clerk and/or department head. Both department heads must agree when the excess property cost was in excess of $2,500. Transfers between departments are contingent upon approval of the City Manager.
Notification will be provided to the City Clerk and Finance Department in writing of any transfer of excess property to a different location or department ownership.
(3) Transfer Surplus Property for Trade-In or Return to Manufacturer.
(a) Department heads may offer property for trade-in toward the purchase of new property and equipment with the approval of the City Manager. Department heads will attach trade-in information to the procurement documents. Department directors will notify the City Clerk of the procurement and disposition of property and equipment.
(b) Department heads may offer property and equipment for buy-back credit to the manufacturer with approval of the City Manager. Department heads will forward buy-back credit documents to the Finance Department. Department directors will notify the City Clerk of this disposition of property and equipment.
(c) Department heads and the City Clerk will inform the Finance Department of all trade-ins and credits since it is critical for budgeting and asset tracking.
If surplus property is to be applied to a purchase order, the trade-in value and/or credit shall be itemized on the purchase order. The amount charged against the appropriation code will be the value of the purchase before application of the trade-in credit.
(4) Disposal of Surplus Property.
(a) Excess property as shown on excess property notification that is not transferred among departments or for trade-in or manufacturer’s credit will be declared surplus by the department head.
The department head will determine the estimated market value and the most fiscally advantageous method of disposal.
For surplus property with an estimated market value in excess of $10,000, the method of disposal will be determined by the City Council.
(i) In determining the estimated market value, the department head shall document the methods used to make such determination including tools such as Kelly Blue Book, classified advertisements, and local vendors with similar products available.
(ii) The estimated market value will consider a computation of expenses associated with the disposal of surplus property. These expenses may include advertising, auction costs, storage, and other costs.
(iii) For surplus property in volume with unit values less than $2,500, if the aggregate total of the property exceeds $2,500, then estimated market value will be by group.
(b) Method of Disposal. Sale of surplus property shall be to the highest bidder or for the highest market value and may be disposed of by sale by public auction, or sealed bid.
(i) Auction. Surplus property may be sold at public auction. Public auctions may be conducted by City staff, or the City may contract with a professional auctioneer or electronic auction site.
Sale of surplus property at public auction conducted by City staff must be after giving publication in the official newspaper of the City no later than 10 days prior to such auction. The department head shall reserve the right to reject any and all bids received for any item.
In the event the department head rejects any and all such bids so received, the item may not be disposed of for a lesser value of the lowest bid rejected.
Abandoned bicycles and unidentified bicycles in possession of the Police Department for six months may be sold at public auction conducted by the Police Department in accordance with RDMC 3.35.040.
All unclaimed property may be sold at public auction after the period of six months in accordance with RDMC 3.35.040.
(ii) Sealed Bid. Sealed bids may be solicited for the sale of surplus property. The department head shall reserve the right to reject any and all bids received for any item.
In the event the department head rejects any and all such bids so received, the item may not be disposed of for a lesser value of the lowest bid rejected.
(iii) Selling for Scrap. Surplus property may be sold as scrap if the department head deems that the value of its parts exceeds the value of the surplus property as a whole after approval of the City Council. For-profit vendors shall include scrap dealers and recycling centers.
(iv) No Value Item. Where the department head determines that property is surplus and of minimal value to the City due to spoilage, obsolescence or other cause or where the department head determines that the cost of disposal of such property would exceed the recovery value, he/she shall dispose of the item in such a manner as they deem appropriate and in the best interest of the City considering the ability to recycle. Disposal of no value items must be approved by the City Council.
(v) Donation. Surplus property may be donated to any other public agency or charitable organization exempt under Section 501(c)(3) of the Internal Revenue Code.
(A) “Public agency” means the State or any agency or subdivision thereof, any city, county, special district, or school district.
(B) Non-profit organizations are recognized as charitable organizations exempt under Section 501(c)(3) of the Internal Revenue Code.
(5) Accounting for the Disposition of Surplus Property.
(a) The department head will notify the Finance Department in writing of the disposition of all surplus property and attach all supporting documentation.
(b) The Finance Department shall make adjustments to their inventories/assets lists showing the disposition of excess property.
(c) Copies of all records documenting the surplus property process will be kept on file with the City Clerk.
(6) Transfer of Ownership and Title. Delivery of the surplus property together with transfer of ownership and title passes upon receipt of the proceeds.
The City Clerk shall cause licenses and title documents to be executed and transferred upon verification of receipt of funds.
(7) Surplus Property and Employees. City employees shall not be the purchasers of any surplus real or personal property of the City.
This disqualification shall extend to the family members of such employees and any third persons acting at the direction or request of a disqualified employee where the purchase or sale is intended for the benefit of such employee.
Any exceptions to this policy will only be made at the direction of the City Manager.
Violation may result in disciplinary action up to and including discharge. [Ord. 271 § 6, 2011.]