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HomeMy WebLinkAbout250-10D City of 0 t POLICY & PROCEDURE Subject: Index: Finance & Information Services SURPLUS & DISPOSAL OF SURPLUS Number: 250-10 PERSONAL PROPERTY Effective Date: Supersedes: Page:Staff Contact: Approved y: 3/23/2015 11/13/2006 1 of5 Iwen Wang 1.0 PURPOSE: To efficiently use or dispose of surplus personal property in a cost effective and safe manner. 2.0 ORGANIZATIONS AFFECTED: All departments/divisions 3.0 REFERENCES: Article VIII, Section 7 of the Washington State Constitution—prohibiting gifts of public property. RCW 35.94.040 Lease or sale of land or property originally acquired for public utility purposes. RCW 39.33.010— Intergovernmental property transfers RCW 39.33-020—Disposal of Surplus Property—Hearing Notice RCW 43.09.210— Local government accounting—Separate accounts for each fund or activity—Exemption for agency surplus property. AGO 1997, No. 5—receiving full value for surplus property RCW 43.23.020—restricts Mayor, Councilmembers and city staff who oversee surplusing of property from purchasing surplus property. 100-13 Vehicle Equipment Rental 250-12 Disposal of Scrap and Salvage Material is hereby repealed 4.0 POLICY: It is the policy of the City of Renton that surplus personal property with commercial value will be disposed in a cost effective and efficient manner that achieves the highest value for the City. This policy does not address the surplus of real property which is addressed in P&P 100-12. Policy 250-10 p. 2 Surplus property will first be transferred between departments. If other departments do not need the property, it may be traded in, sold, or donated. If donated, the organization must serve or benefit the public in accordance with RCW 39.33.010. It is the policy of the City of Renton that scraps not resalable and/or trash be efficiently and safely disposed using proper handling and within the recycle or waste stream by staff. 5.0 DEFINITIONS: 5.1 ELIGIBLE NONPROFfT ENTITY: For the purpose of this policy, an eligible nonprofit entity is an Internal Revenue Code 501(c)3 organization that provides services to the poor and infirm. Human services organizations eligible of Receiving a Community Development Block Grant and/or City Human Service funding are deemed eligible nonprofit entities under this policy. 5.2 PERSONAL PROPERTY: For the purpose of this policy, personal property means tangible property that is movable, such as supplies and equipment, as opposed to real property such as land and buildings. 5.3 SURPLUS PROPERTY: Any city personal property and/or asset that is no longer needed now, or in the foreseeable future, or that is no longer of value or use to the City. This includes, but is not limited to, items acquired through unclaimed evidence, recycle collections, or lost and found items. The determination of value shall be made after considering the cost associated with disposition. The determination as to whether an item is trash, scrap, or surplus property is to be made by the Department Administrator responsible for the item. 5.4 SCRAP METAL/MATERIALS: For the purpose of this policy, scrap materials shall be construed as any type of material that has salvage value and meets the definition of discarded material suitable only for reprocessing." Examples include, but are not limited to: copper, brass, bronze water meters, bronze castings, aluminum signs and plate. 5.5 TRASH: Items that are broken, unusable, obsolete, or have no commercial, salvage, or donation value. 6.0 PROCEDURE: 6.1 GENERAL PROVISIONS: Departments with surplus property shall establish a process for disposal of surplus property in conformance with this policy and procedure, and complete the Property Disposition Form section that identifies the surplus property and the department in possession. To begin the process, the administrator of the department responsible for surplus supplies or equipment shall approve the completed Property Disposition form. H:\Deputy City C1erk Policy&Procedures\200\250-10(2015).docx Palicy 250-20 p.3 6.1.1 After the administrator approves the form,the department shall notify City departments of its available property. if another department wants the property,they shail campiete the section of the Proper#y Disposition Form that identifies the receiving department. 6.12 Surplus property that is not wanted by any department can be traded in toward new items, sold, donated, ar discarded based on the net realizabie value. 6.1.3 If the property is to be donated, it must be donated to an eligible non-profit organization; or if to another government entity, must fallow section 6.2.3. If the surplus property is danated ta an eligible non-profit organization, the Department must obtain praof of the organization's non-profit and eligibility status prior to delivery of tne surplus property. 6.1.4 Items deemed not to be saleable (i.e., weapons, etc.) must be disposed of according to governing law and handled appropriately. 6.1.5 In any dispute,the Administrative Services (hereafter Finance) Administrator shail make the final decisian on the transfer,trade, sale, ar donatian of all City surpius praperty, in caoperatian with the department administrator in possession of the surplus property. 6.1.6 Departments shall provide documentation to the Finance Adrninistratar of the actual transfer af their surplus property within 3Q days of the actian. For the transfer of property within the City, the Praperty Disposition Form includes a section to record the praperty transfers between departments. 6.1.7 When surplus property is traded in, sold, or donated, documentation recording the value and receipt af the surplus property shall be obtained from the receiving organizatian. The original copies of the documentatian shall be provided to the Finance Administrator within 30 days of the transfer of the City's praperty. 6.1.$ The value received fram the sale of surplus property shall be deposited as revenue to credit the appropriate fund. 6.1.9 City officials (per RCW 42.23.020), the requesting department manager signing the Request form, employees processing the request and their immediate family are restricted from purchasing the surplus items due to conflict of interest concerns. Generally, city employees may bid on and or purchase surplus city property under the same rules as the general public, unless they are a party listed above. Viala#ion by parties listed above that are restricted from purchasing surplus city property can result H:\Deguty City C1erklPolicy&Procedures\2Q0\25(?-10(2O15).docx Policy 250-10 p.4 in disciplinary action up to and including termination. 6.2 SPECIAL PROVISIONS:The following provisions apply to specific type of surplus properties and/or procedure in disposing surplus properties. They are supplemental to the General Provisions identified in Section 6.1 above. Any conflicts between the two sections, the specific provisions shall apply. 6.2.1 Scrap Metal 6.2.1.(1) Scrap materials shall be accumulated in an area designated by the department of origin, until there is an economically feasible amount of material for disposal. 6.2.1.(2) Bidding: Whenever possible three price quotations shall be required for disposal. Exceptions are made when certain manufacturers and distributors offer a buyback or trade-in value which can be more advantageous to the City's financial interests. 6.2.1.(3) The material will be sold to the best bidder. The best bid will be determined by evaluating the price and the amount of labor and equipment costs necessary to process and dispose of scrap material. 6.2.1.(4) Every effort will be made to obtain the best economic return to the City. In the event that scrap and salvage materials accumulate that have little or no salvage value, the scrap material may be disposed of in the most responsible and cost effective manner. 6.2.2 Vehicles 6.2.2.(1) The Public Works Department will manage and maintain City vehicles and equipment being auctioned or otherwise disposed of. The Public Works Department shall provide Finance an itemized list of any such disposition within 2 days of receiving payments or within 30 days of the title transfer/disposition. 6.2.2.(2) If the disposition is through methods other than a fair market value exchange as can be established by an open public auction process, Public Works Department shall use the form contained in this policy or a similar form to identify the method of disposition, the approval of such other than fair-value disposition, the estimated fair market value of items so disposed, and actual payments received, if any. H:\Deputy City C1erk Policy&Procedures\200\250-10(2015).docx Policy 250-10 p.5 6.2.3 Intergovernmental transfer. 6.2.3.(1) Intergovernmental transfer of property shall be based on full value exchange pursuant to RCW 43.09.210 and AGO 1997, No. 5. Department administrator will be responsible for documenting that the City is receiving full value of consideration in such transfer or exchange. 6.2.3.(2) Before disposing of any surplus property with an estimated value of more than $50,000 in an intergovernmental transfer, the City shall hold a public hearing in the manner and with notice as prescribed by RCW 39.33.020, now or as hereafter amended. 6.2.4 Utility Property and Equipment: Whenever the City shall determine, by resolution, that any property or equipment originally acquired for public utility purposes is surplus to the City's needs and is not required for providing continued public utility service,then the Council, by resolution and after a public hearing, may cause such property or equipment to be sold, leased, or conveyed. Such resolution shall state the fair market value and such other terms and conditions for such disposition as the council deems to be in the best public interest (RCW 36.94.040). 6.2.5 Unclaimed or Seized Police Property: The police department will manage and maintain unclaimed and/or seized properties sent to surplus. The list shall be approved by the Police Chief or his/her designee. H:\Deputy City C1erk Policy&Procedures\200\250-10(2015).docx ptta n` ent P pisP° S t r E of the d° nated` tems. l p operty to de very G~ ty a{ Re t ac an' Zat on r°% Q 12. 1 Qded• 1 e eiving te ty Un' p ocedure Z5 po\' tcY 5fl 1 bUt r°' Re ratn th ce ria ertY 6 ondi< on e obta ned ds l to the aPprOpe w th P cY& SUblect prop p etty 5 W Kkf$ tatu5 sha p5 d ffer nt O° te as e e 5e in Orda Zat; on{ receivin9 heck nel rQpertY l'( he pKproa{ of n° d pr ce°'` e ow Wi\ be ae e a ue and disP or Non. 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Transfer Asset Tracking# and Seriai No. are required if tem is on the fixed asset inventory priginal Lacation age Value of of Property City Asset Items Asset Description Tracking# Ser a N°' nner noted on page i, and on the date( s noted under the column titied" Date of The below signature confirms that the property detailed on this form was d+ sposed of in the ma ransfer." Title P rinted Namel Si natur e g Date City Dept/ Div Contact Name Phone# jExt ii be abtained from the Administrator of the Finance and 15 Department( see PolicY& Procedure 250- 14 The final approvai of propertY transactions sha p15). docx H; iDeputy City Clerk\ Policy& Procedures\ 200\ 250- 10(..