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A. Purpose. The purpose of this policy is to establish operational procedures for the sale, disposition, or transfer of the city’s personal property that has been designated as surplus. The goal of this policy is to ensure that the sale of surplus personal property is conducted in an open and competitive environment.

B. General Conditions of Surplus Property.

1. All city personal property deemed surplus, obsolete, or unusable shall be disposed of according to the provisions set forth in this city-wide policy regardless of its physical condition, excluding found property.

2. Any personal property with a market value of approximately $200.00 or less may be disposed of by any manner deemed appropriate by the department director.

3. Any personal property with a market value above $200.00 must be disposed of through a surplus sale method unless otherwise allowed for elsewhere in this policy.

4. Written documentation must be sent to the city manager before disposition with a description of the property, estimated market value, and recommended method of sale or disposition.

C. Exceptions to the General Conditions of Surplus Property.

1. Hazardous materials such as insecticides, solvents, medical wastes, paints, combustibles, or any other toxic or hazardous items shall not be disposed of through the surplus program. City departments shall dispose of such materials consistent with law.

2. Equipment where a reseller or the original seller of the personal property will repurchase or offer credit for turning in old or outdated equipment is allowed if it is in the best interest of the city.

a. Written documentation must be sent to the city manager from the department director.

3. In cases where federal, state, or other government agency funds are being used where the agency’s purchasing laws or procedures govern the process for disposing of surplus property, the city shall follow the applicable agency law or procedures in lieu of the procedures set forth in this policy.

4. In cases where a city employee is set to retire, as a retirement gift and following all other city policies regarding the taxability of gifts, surplus property may be gifted to that employee.

a. Written documentation must be sent to the city manager from the department director, and approved by the city council.

D. Technology Surplus Policy. All technology personal property designated for surplus must be given to the department director assigned to IT (DD-IT), who is the authorized surplus property agent for all technology products.

1. To the extent it is practical, all technology products shall have all information, programs, software or any other information deemed appropriate by the DD-IT removed prior to disposition.

2. The DD-IT, with the city manager, will determine the proper process for disposal of technology surplus personal property.

a. The DD-IT may decide that due to personal information or other risks that the personal property must be destroyed.

b. The DD-IT may decide that technology products may be returned to the seller of the personal property for credit or proper disposal, if in the best interest of the city.

c. The DD-IT may decide that technology products may only be resold to the city employee to which they were assigned.

d. If technology products resale to the assigned employee is not appropriate, they can be made available to other full-time employees, using an equitable process for resale determined by the DD-IT.

e. All resale to employees will be a fair market value as determined by the DD-IT.

E. City Employee Surplus Acquisition. City employees may participate in the acquisition or purchase of city surplus personal property, but only in a manner similar to the public at large or except as authorized by subsection (B) of this section. No city employee shall be given any consideration or privilege in any acquisition or purchase that might be construed as giving that employee an advantage in obtaining surplus property.

F. Sale of Surplus Property Policies.

1. All sales over $200.00 of surplus property shall be preapproved by the city manager. All sales shall be conducted in an open manner consistent with city ordinances, this policy, fair business practices, and generally accepted accounting practices.

2. All sales are considered final and no guarantees or warranties of any kind will be allowed, especially as it pertains to actual condition or function of the property being sold. All surplus property sold shall be considered “as is” and “where is.”

3. The city will incur no expense to move or deliver any surplus property. It shall be the responsibility of the buyer to provide all services necessary to move, transport, deliver, or perform any other necessary tasks to remove the surplus property from the city’s property.

4. All surplus property must be paid for before the property is released to the purchaser. The money must be received by the city within 72 hours of the sale, or it will not be released. This should be in the form of cash or cashier’s check, unless otherwise allowed for and agreed upon by the city manager.

5. The city may consider any offer to purchase surplus property by means of a negotiated sale.

6. In instances where the city finds it advantageous to trade in surplus property for credit towards the purchase of new equipment, it will be allowed only when approved by the city manager.

7. The city may give surplus property to a charitable organization, school district, or other governmental entity when approved by the city manager.

8. All proceeds from the sale of surplus property will be deposited into the appropriate revenue account approved by the chief financial officer. Proceeds from the sale of property originally procured by the city from an enterprise fund or special revenue fund shall be deposited into a revenue account within that fund unless otherwise determined by the chief financial officer or city manager.

G. Discipline. Failure to comply with this policy may result in the rescinding of the department or employee’s ability to perform the duties of a surplus property agent or discipline as stated in the city’s employee handbook.

H. Audit. Audits of any surplus sale or disposition may be conducted at any time. Any method of disposition or sale may be reviewed and written justification requested. [Ord. 03-21-2017A § 1; Ord. 06-18-2013A § 2].