Chapter 3.08
DISPOSITION OF CITY-OWNED PERSONAL PROPERTY
Sections:
3.08.010 Guidelines for decision.
3.08.030 Responsibility for administration.
3.08.040 Determination of value.
3.08.050 Disposition of property.
3.08.060 Sale of surplus to another governmental entity.
3.08.080 Trade-in of surplus equipment.
3.08.005 Purpose.
The purpose of this chapter is to establish procedures for the disposition of tangible personal property owned by the city of Richland that is not needed at present or in the foreseeable future, or is no longer of value or use to the city (also referred to as surplus property). [Ord. 51-15 § 1].
3.08.010 Guidelines for decision.
The disposition of all surplus personal property under this chapter shall be done in a manner that is in the city’s best interests. Factors to consider in determining the city’s best interests include but are not limited to:
A. Possible future requirements of the city;
B. Present value of the property;
C. Likelihood of locating a buyer;
D. Donation. [Ord. 51-15 § 1].
3.08.020 Definitions.
“Estimated market value” is the sale price of property as between a willing seller, who desires but is not required to sell, and a willing purchaser, who desires but is not required to buy, assuming both are knowledgeable as to all uses to which the property can be put.
“Expendable property” is that property which, when committed to the purpose intended, has its usefulness consumed and thereafter has no further value.
“Personal property” is city-owned equipment, machinery and tools (does not include expendable supplies).
“Surplus property” is personal property obsolete or no longer maintainable, including waste or scrap materials.
“Worthless property” is property which when processed in the manner most advantageous to the city cannot reasonably be sold for an amount sufficient to recoup the cost of sale or disposal. [Ord. 51-15 § 1].
3.08.030 Responsibility for administration.
The city’s purchasing manager, or such other officer with equivalent duties as may from time to time be appointed, is responsible for establishing the processes and administration of this chapter. The purchasing manager shall coordinate the disposition of surplus property, and shall aid the city manager and city council in determining the best method of disposal. All departments of the city shall cooperate with the purchasing manager to ensure the most efficient and beneficial disposition of surplus property. [Ord. 51-15 § 1].
3.08.040 Determination of value.
A. A city department wishing to dispose of a single item of surplus property, or a group of items, shall make an estimate of the reasonable market value in “as is, where is” condition. If the department responsible for the property cannot make the estimate, the purchasing manager shall determine the reasonable market value.
B. The purchasing manager may establish guidelines to assist departments in determining whether it is suitable to keep or dispose of used property.
C. When disposal is made to the general public through sealed bid or auction, final determination of value shall be the highest responsible bid or offer. [Ord. 51-15 § 1].
3.08.050 Disposition of property.
A. Five Thousand Dollars or Less. Approval of the city council is not required for the sale or disposition of any city-owned personal property with an individual item estimated value equal to or less than $5,000.
1. Property Value up to $2,000.
a. If the surplus property’s individual item estimated value is equal to or less than $500.00, has no commercial auction or scrap value and would cost more to sell as compared to the net proceeds received, the surplus property may be considered worthless property and may be disposed of as determined by the purchasing manager.
b. If the surplus property’s individual item estimated value is equal to or less than $2,000, the purchasing manager may dispose of the property in any manner deemed to be in the city’s best interests, as determined consistent with the guidelines in RMC 3.08.010 and this chapter.
2. Property Value over $2,000 and up to $5,000.
a. If the surplus property’s individual item estimated value is over $2,000 and equal to or less than $5,000, the city manager may dispose of the property in any manner deemed to be in the city’s best interests, as recommended by the purchasing manager, and consistent with the guidelines in RMC 3.08.010 and this chapter.
B. Over $5,000. Approval of the city council is required for the sale or disposition of any city-owned personal property with an individual item estimated value over $5,000.
1. The purchasing manager shall present a report to the city council, which includes at a minimum a description of the surplus property and the estimated value.
2. Upon approval by the city council, the purchasing manager may dispose of the surplus property in one of the specifically approved methods listed below:
a. Public auction;
b. Solicitation of written bids;
c. Negotiated sale;
d. Transfer to another government agency;
e. Lease or loan;
f. Alternatively, the purchasing manager may request city council’s authorization to dispose of the surplus property in another manner. [Ord. 51-15 § 1].
3.08.060 Sale of surplus to another governmental entity.
A. Sale or disposition of surplus property with an individual item estimated value of $50,000 or less to another governmental entity shall be approved by the city manager.
B. Sale or disposition of surplus property with an individual item estimated value of more than $50,000 to another governmental entity shall be approved by the city council and requires a public hearing and certain notice provisions.
C. Qualified governmental entities include, but are not limited to, state agencies (including universities and colleges), tax-supported agencies, municipalities, or political subdivisions within the state of Washington, and any other tax-supported educational agencies. [Ord. 51-15 § 1].
3.08.070 Donation.
The city manager may authorize a donation of surplus property when the cost of disposition of the property is equal to or exceeds the current fair market value of the property, to a specific bona fide charitable organization which is tax exempt pursuant to Internal Revenue Code Section 501(c)(3), provided the donated property will be used to support the poor and infirm, including qualified emergency shelters providing assistance to homeless persons.
A. The organization must submit a “request for donation.” [Ord. 51-15 § 1].
3.08.080 Trade-in of surplus equipment.
Notwithstanding RMC 3.08.050(A), approval of the city council is not required for the trade-in of surplus equipment with an individual item estimated value of more than $5,000 when purchasing new equipment, so long as the city receives appropriate trade-in value for the surplus equipment. Appropriate trade-in value shall be determined by reference to “The Blue Book” or other similar published reference book or website. [Ord. 51-15 § 1].
3.08.090 Exceptions.
Certain city ordinances and provisions of the Revised Code of Washington (RCW) impose special conditions for the disposition of municipal property. Where necessary, the city shall comply with those laws, treating them as limited exceptions to this chapter. Exceptions include, but are not limited to, the following as they may from time to time be amended:
A. RCW 27.12.305 and 27.12.320: disposition of library materials;
B. RCW 35.21.088: equipment rental;
C. Chapter 35.94 RCW: surplus utility property;
D. RCW 46.52.145: disposition of abandoned junk motor vehicles;
E. Chapter 63.21 RCW: disposition of found or unclaimed property in the hands of police.
F. Certain personal property acquired under federal grants and contracts, if in conflict with special title provisions contained in such grants or contracts. [Ord. 51-15 § 1].
3.08.100 Restrictions.
A. City employees shall not directly or indirectly use, take, or dispose of city property other than in their official duties. This includes, but is not limited to, uniforms, supplies, tools, equipment, and vehicles. Items owned by the city found to be unfit for further service on the job shall be turned in to a designated point within the department. As the numbers of items turned in justifies, they will be declared surplus and sold or disposed of pursuant to the procedures of this chapter. No city-owned item shall be turned over to an individual (employee or other person) for his/her/personal use.
B. Employee and retired employee associated organizations shall not request and will not receive any preferential treatment in the disposal or sale of city surplus material unless authorized by the city manager.
C. City officials and employees are prohibited from purchasing city surplus items directly or otherwise as a buyer or buyer’s agent. [Ord. 51-15 § 1].