{CW135833.1}
CITY OF PATTERSON
SURPLUS PROPERTY POLICY
General information
A surplus property policy ensures that the City of Patterson disposes of City-owned personal property that is no longer needed or usable by the holding department. It is financially advantageous to the City to dispose of surplus personal property in a manner that expeditiously maximizes revenue and converts idle equipment and materials to revenue, thereby recovering funds for other uses.
Disposal of surplus personal property
All surplus property is disposed of “as is” and “where is,” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property offered unless expressly authorized by the City Council.
Transfer or disposition of surplus personal property with an estimated market value exceeding Ten Thousand Dollars ($10,000.00) per item shall be approved by the City Council. The City Manager may direct the transfer and disposition of surplus property with an estimated market value up to Ten Thousand Dollars ($10,000.00) per item.
Surplus personal property shall be disposed of through one of the following methods:
1. Transfer to Another Department. All surplus property will first be considered for transfer between departments for the benefit of the City.
2. Trade-In. Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property.
3. Return to Manufacturer. Surplus property may, when possible, be returned to the manufacturer for buy-back credit.
4. Disposal. The City may offer surplus property for sale by one of the following methods:
a. Auction. Surplus property may be sold at public auction. Auctions may be conducted by City staff, or the City may contract with a professional auctioneer or electronic auction site.
b. 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. c. Selling for Scrap. Surplus property may be sold as scrap if the City deems that the value of its parts exceeds the value of the surplus property as a whole. d. Sale to Another Public Agency. Surplus property may be sold to any other public agency, provided that the price is determined by the City Manager to be fair and reasonable.
{CW135833.1}
5. No Value Item. Where the City determines that property is surplus and of minimal value to the City due to spoilage, obsolescence, the item is deemed to be broken and unrepairable, or other cause or where the City determines that the cost of disposal of such property would exceed the recovery value, the City shall dispose of the same in such a manner as they deem appropriate and in the best interest of the City.
6. Donation. Surplus property may be donated to any other public agency or charitable organization exempt under Section 501(c)(3) of the Internal Revenue Code.
Surplus Property and Employees.
Elected officials, department heads, and staff responsible for City-owned personal property shall continually monitor the use of personal property to ensure that, when no longer needed, personal property is listed and sent to the City Manager for approval to dispose. The City Manager is authorized to declare personal property to be surplus.
City employees shall not be the purchasers of any surplus personal property of the City unless the property is disposed of by public auction, sealed bids, or other competitive sale. This disqualification shall extend to the family members of such employees and any third persons acting at the direction or request of a disqualified employee where the purchase or sale is intended for the benefit of such employee. The City shall make diligent efforts to dispose of surplus personal property by the methods above. If the City is unable to dispose of surplus personal property despite these efforts and the property is either of no value to the City or the cost of disposal of such property would exceed the recovery value, then a City employee may take possession of the surplus personal property at the direction of the City Manager.