City of Camarillo
CITY COUNCIL POLICY
Section: Finance Date Adopted: October 28, 2020
Last Amended:
Subject: Surplus Property
Number: 3.17 Page 1 of 3
PURPOSE
The purpos
e of this policy is to set To establish guidelines for controlling the transfer and or disposition of City-owned surplus property , equipment and supplies . For purposes of this policy the Purchasing Officer is the City Manager or his/her designated representative and surplus property is defined as any City-owned property no longer needed. Examples include, but are not limited to, vehicles, machinery, equipment, furniture, and fixtures used in operations with an initial useful life greater than one-year.
DEFINITIONS
Purchasing Officer. The City Manager or his/her designated representative.
Surplus Pr
operty. Any City-owned property no longer needed. Examples include, but are not limited to, vehicles, machinery, equipment, furniture, and fixtures used in operations with an initial useful life greater than one-year.
POLICY
Each department must periodically City departments will annu ally review and evaluate
the condition and functionality of its equipment, furniture, machinery, material and inventory supplies, etc. , to determine if the property still provides the most appropriate method of service delivery costs associated with the storage, maintenance, transportation and other costs for maintaining the surplus pr operty exceed the invent ory value or fair market value of the property. City property has a limited economic or useful life and sound fiscal responsibility require the expeditious disposal of any surplus property.
When the originating departm ent determines the prope rty no longer meets the departments service delivery operating needs, that the department will notify other c City
departments of the availability and condition of the surplus item property before requesting removing the item the removal of the property from operation/service. This is accomplished by completing The department will complete a Surplus Property / Transfer form; submitting and submit it to the Administrative Services Department for internal processing, approvals and ultimate disposition disposal of item the property.
Assets purchased or procured through State or Federal a gencies are subject to the respective agencies surplus rules and regulat ions. When property or equipment is no
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Adopted 3.17, October 28, 2020 Policy 3.17 Amended Page 2 of 3 longer needed for the originally authorized pur pose, the City must obtain disposition instructions from the Federal awarding agency. Departments are responsible for obtaining said agencies disposal or surplu s requirements in-place at the time of acquisition and are responsible to ensure the it ems are disposed of in accordance with said regulations.
A. Methods of Disposition
When it is determined that property is of no further use to the City or has exhausted its useful life for City operations, such property will be disposed of according to the following guidelines. All Mmethods listed below require a completed Surplus Property/ Transfer Form to be submitted to the Purchasing Officer or designee (Administrative Services Department) for processing.
1. Transfer to Another Depar tment – All transfers of it ems with an estimated value greater than $1,000 requires approval of the Director of each department affected by the transfer.
2. Trade-In – Items may be offered as a trade- in for credit toward the acquisition of new property. All trade-in offers will be submitted for the review and approval of the Purchasing Officer prior to finalizing purchase of replacement equipment.
3. Return to Manufacturer – When possibl e, surplus property should be returned to the manufacturer for buy-back or credit toward the purchase of new property.
4. Disposal – with prior appr oval by the Purchasing Officer, items may be offered for sale to the public. All surplus property will be offered for sale in “as is” and in “where is” condition with no warranty, guarantees or representat ion of any kind, expressed or implied, as to the condition, utility or usability of the property offered for sale, unless other terms of sale ar e authorized by the Purchasing Officer. A Surplus Property / Release Transfer form must be signed by receiving agency/person prior to release of surplus item(s). Methods of disposal also include:
a. Public Auction – Surplus property may be sold at a public auction. and the City may contract with a professional auction services. b. Sealed Bids – Sealed bids may be solicit ed for the sale of surplus property.
Surplus property disposed of in this manner shall will be sold to the highest responsible bidder.
c. Selling for Scrap – Surplus property may be sold as scrap, if the Purchasing Officer deems that the value of the raw material exceeds the value of the property as a whole.
d. Negotiated Sale – Property Mmay be sold outright if the Purchasing Officer determines that only one known buyer is available or interested in acquiring the surplus property.
d.e. Recycle – If surplus property cannot be transferred or sold, the City may Adopted 3.17, October 28, 2020 Policy 3.17 Amended Page 3 of 3 recycle such surplus property whenever possible.
e.f. No Value Item – Where the Purchasing Officer determines that specific supplies or equipment are surplus and of minimal value to the City due to spoilage, obsolescence or other cause, or that the cost of disposal of such supplies or equipment would exceed the recovery value, the Purchasing Officer may dispose of the same in such a manner as he or she deems appropriate, which may include donations to interested local non-profit organizations and/or schools.
B. Proceeds
All Pproceeds from the sale or trade-in of surplus property will be applied to the appropriate fund(s) as determined by the Finance Director of Finance.
C. Record Keeping
If the asset property is a capital asset, as defined in the Capital Asset Policy, 3.15, the Finance Department will remove t he capital asset from the City’s General Ledger financial records . If equipment inventory lists are maintained by user individual departments the list must be updated by the department responsible for those items.