(A) General methods. Surplus property may be disposed of by any of the methods set forth below upon a determination by the department head that the method of disposal is in the best interest of the city. Factors that may be considered by the department head include the costs of sale, administrative costs, and public benefits to the city. The department head shall maintain a record of the manner of disposal, including the name of the person to whom the surplus property was transferred. The following methods are approved:
(1) Governments. Without competition, by transfer to another city department or to another public agency or entity;
(2) Auction. By publicly advertised auction to the highest bidder;
(3) Bids. By public advertised invitation to bid;
(4) Liquidation sale. By liquidation sale using a commercially recognized third-party liquidator in accordance with rules for award of personal service contracts;
(5) Fixed price sale. The department head may establish a selling price based upon an independent appraisal or published schedule of values generally accepted by the insurance industry, with sale being pursuant to a scheduled sale with sale being to the first buyer to meet the sale terms;
(6) Trade-in. By trade-in, in conjunction with acquisition of other price-based items under a competitive solicitation. The solicitation shall require the offer to state the total value assigned to the surplus property to be traded; and
(7) Donation. By donation to any organization operating within or providing a service to residents of the city which is recognized by the Internal Revenue Service as an organization described in I.R.C. § 501(c)(3), as amended.
(B) Disposal of property with minimal value. Surplus property which has a value of less than $500 or for which the costs of sale are likely to exceed sale proceeds, may be disposed of by any means determined to be cost effective, including by disposal as waste. The official making the disposal shall make record of the estimated value of the item and the manner of disposal.
(C) Restrictions on sale to city employees. Employees shall not be restricted from competing, as members of the public, for the purchase of publicly sold surplus property, but shall not be permitted to offer to purchase property to be sold to the first qualifying bidder until at least three days after the first date on which notice of sale is publicly advertised.
(D) Conveyance to purchaser. Upon consummation of a sale of surplus personal property, the city shall make, execute and deliver a bill of sale or appropriate sale invoice on behalf of the city, conveying said property to the purchaser and shall deliver possession or the right to possession to the purchaser.
(Ord. 2010-01, passed 7-1-2010)