The purchasing agent, or his or her designee, must be contacted when city personal property (supplies and equipment) has been deemed excess, obsolete, worn out, no longer usable, or no longer needed by the city, except as provided otherwise in this section. Surplus property disposal forms are to be completed to facilitate transfer of the city property for proper disposal. The city manager or designee will determine the best avenue for disposal, for the benefit of the city. Such avenues include, but are not limited to, the following:
A. Sale. For city property deemed suitable for sale, city manager or designee may offer the city property for sale via the following approved methods:
1. Public Auction. Surplus property may be sold at public auction. Online auctions are an acceptable auction method. City may contract with a professional auctioneer, at its discretion.
2. 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.
3. Selling for Scrap. Surplus property may be sold as scrap if it is deemed that the value of the raw materials exceeds the value of the property as a whole.
4. Negotiated Sale. Surplus property may be sold outright if it is determined that only one known buyer is available or interested in acquiring the property. Advertisement of the sale must be published in a newspaper for at least two weeks prior to the negotiated sale to ensure no other interested buyers are available.
A receipt or other proof of disposal from the outright sale, the contracted auctioneer, licensed scrap dealer, individual buyer, etc. is required and is to be forwarded to the Finance Department. City will return proceeds to the appropriate revenue fund.
All surplus property is for sale “as is” and “where is”, with no warranty, guarantee, or representation of any kind, express or implied, as to the condition, utility or usability of the property offered for sale.
B. Trade-in. Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property.
C. Donation. With the approval of the city manager or designee, the city may donate usable items with a minimal fair market value (such as outdated computer equipment and furniture) to a registered charitable organization or community organization. Surplus property may also 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 of California or any agency or subdivision thereof, including any city, county, special district, or school district. A letter from the public agency or organization, acknowledging receipt of the asset(s), is required.
D. Return to Manufacturer. Surplus property may, when possible, be returned to the manufacturer for buy-back or credit toward the purchase of new property. Documentation related to such a transaction shall be forwarded to the Finance Department.
E. Disposal. When the cost of locating a buyer exceeds the estimated sales price of surplus property, the property may be recycled, destroyed, or disposed of as junk.
(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.300)