Legal Documents of Baneberry

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 specified by the city council. It is critical to maintain a trail of documentation for audit purposes regarding the disposition of property of the City of Baneberry.

The city manager or his designee is authorized to declare property, equipment and materials surplus.

1. Identifying excess property. Each department head is responsible to identify excess property regularly.

   Each department head will evaluate the operational status of the excess property and notify the city manager in writing.

   The city manager will circulate the excess property notification between the other departments within the city.

2. Transfer excess property between departments. Department heads may request the transfer of excess property by making request to the city manager. Both department heads must agree when the excess property cost was in excess of two thousand five hundred dollars ($2,500.00). Transfers between departments are contingent upon approval of the city manager.

   Notification will be provided to the city manager in writing of any transfer of excess property to a different location or department ownership.

3. Transfer surplus property for trade-in or return to manufacturer.
   
   
   1. Department heads may offer property for trade-in toward the purchase of new property and equipment with the approval of the city manager. Department heads will attach trade-in information to the procurement documents. Department heads will notify the city manager of the procurement and disposition of property and equipment.
   2. Department heads may offer property and equipment for buy-back credit to the manufacturer with approval of the city manager. Department heads will forward buy-back credit documents to the city manager. Department heads will notify the city manager of this disposition of property and equipment.
   3. Department heads will inform the city manager of all trade-ins and credits since it is critical for budgeting and asset tracking. If surplus property is to be applied to a purchase order, the trade-in value and/or credit shall be itemized on the purchase order. The amount charged against the appropriation code will be the value of the purchase before application of the trade-in credit.
4. Disposal of surplus property.
   
   

   1. Excess property as shown on applicable notifications, that is not transferred among departments or for trade-in or manufacturer's credit, will be declared surplus by the department head or city manager.

      The department head will determine the estimated market value and the most fiscally advantageous method of disposal.

      For surplus property with an estimated market value in excess of ten thousand dollars ($10,000.00), the method of disposal will be determined by the city council.

      1. In determining the estimated market value, the department head shall document the methods used to make such determination including tools such as Kelly Blue Book, classified advertisements, and local vendors with similar products available.
      2. The estimated market value will consider a computation of expenses associated with the disposal of surplus property. These expenses may include advertising, auction costs, storage, and other costs.
      3. For surplus property in volume with unit values less than two thousand five hundred dollars ($2,500.00), if the aggregate total of the property exceeds two thousand five dollars ($2,500.00), then estimated market value will be by group.
   2. Method of disposal. Sale of surplus property shall be to the highest bidder or for the highest market value and may be disposed of by sale by public auction, or sealed bid.

      1. Auction. Surplus property may be sold at public auction. Public auctions may be conducted by city staff, or the city may contract with a professional auctioneer or electronic auction site.

         Sale of surplus property at public auction conducted by city staff must be after giving publication in the official newspaper of the city no later than ten (10) days prior to such auction. The department head shall reserve the right to reject any and all bids received for any item.

         In the event the department head rejects any and all such bids so received, the item may not be disposed of for a lesser value of the lowest bid rejected.

         Abandoned bicycles and unidentified bicycles in possession of the police department for six (6) months may be sold at public auction conducted by the police department.

         All unclaimed property may be sold at public auction after the period of six (6) months.

      2. Sealed bid. Sealed bids may be solicited for the sale of surplus property. The department head shall reserve the right to reject any and all bids received for any item.

         In the event the department head rejects any and all such bids so received, the item may not be disposed of for a lesser value of the lowest bid rejected.

      3. Selling for scrap. Surplus property may be sold as scrap if the department head deems that the value of its parts exceeds the value of the surplus property as a whole after approval of the city council. For-profit vendors shall include scrap dealers and recycling centers.
      4. No-value item. Where the department head determines that property is surplus and of minimal value to the city due to spoilage, obsolescence or other cause or where the department head determines that the cost of disposal of such property would exceed the recovery value, he shall dispose of the item in such a manner as they deem appropriate and in the best interest of the city considering the ability to recycle. Disposal of no value items must be approved by the city council.
      5. Donation. Surplus property may be donated to any other public agency or charitable organization exempt under 26 U.S.C. § 501(c)(3) of the Internal Revenue Code.
         
         
         1. "Public agency" means the state or any agency or subdivision thereof, any city, county, special district, or school district.
         2. Non-profit organizations are recognized as charitable organizations exempt under section 501(c)(3) of the Internal Revenue Code.
5. Accounting for the disposition of surplus property.
   
   
   1. The department head will notify the city manager in writing of the disposition of all surplus property and attach all supporting documentation.
   2. The finance department shall make adjustments to their inventories/assets lists showing the disposition of excess property.
   3. Copies of all records documenting the surplus property process will be kept on file with the city manager.

6. Transfer of ownership and title. Delivery of the surplus property together with transfer of ownership and title passes upon receipt of the proceeds.

   The city manager shall cause licenses and title documents to be executed and transferred upon verification of receipt of funds.

7. Surplus property and employees. City officials, officers, employees and/or volunteers shall not be the purchasers of any surplus real or personal property of the city.

   This disqualification shall extend to the family members of such officials, officers, employees and/or volunteers and any third persons acting at the direction or request of a disqualified official, officer, employee or volunteer where the purchase or sale is intended for the benefit of such employee.

   Any exceptions to this policy will only be made at the direction of the city manager.

   Violation may result in disciplinary action up to and including discharge. (Ord. #216-2, March 2016, modified)