Chapter 3.86
SALE AND DISPOSAL OF SURPLUS PERSONAL PROPERTY

Sections:

3.86.010    Surplus personal property defined.

3.86.020    Administrative responsibilities.

3.86.030    Procedures.

3.86.040    Methods of disposition.

3.86.050    Sale of surplus personal property by sealed bid.

3.86.060    Sale of surplus personal property to city employees.

3.86.010 Surplus personal property defined.

(a)    For the purpose of this chapter, the terms “surplus personal property” or “surplus property” each mean any tangible personal property owned by the city, which is not needed at present, or for the foreseeable future, or that is no longer of value or use to the city. Items included are those purchased, received as gifts, or found items.

(b)    This chapter does not apply to real property nor does it apply to certain personal property acquired under federal grants and contracts if in conflict with special title provisions in such grants and contracts. (Ord. 4363 § 2 (part), 2012)

3.86.020 Administrative responsibilities.

(a)    The purchasing services section of the finance and administration department is responsible for overseeing the disposition of surplus city personal property, other than vehicles. Purchasing services is also responsible for the issuance and recovery of asset tags.

(b)    The fleet management section of the public works department is responsible for coordinating the sale or disposal of city vehicles.

(c)    The human services section of the parks and community services department is responsible for coordinating the donation of surplus computer equipment or other items to nonprofit agencies that have the purpose of supporting the poor and infirm (Washington State Constitution Article VIII, Section 7).

(d)    The department director or designee is responsible for declaring department personal property as surplus. The department director or designee will consult with purchasing services to determine the best method of disposition for department surplus personal property and will ensure that the appropriate documentation is provided to purchasing services.

(e)    The city manager is responsible for approving the method of disposition for surplus personal property with an estimated value of more than five thousand dollars and less than twenty thousand dollars.

(f)    The city council is responsible for approving the method of disposition for surplus personal property with an estimated value of twenty thousand dollars or more. (Ord. 4363 § 2 (part), 2012)

3.86.030 Procedures.

(a)    If a department has an item that is no longer needed, the department shall submit a city of Kirkland asset disposition form, approved by the department director or designee, to purchasing services. The form shall list the item and state that the item is no longer needed. If the personal property is in usable condition, it will first be made available to all departments. If no departmental interest is shown, the item will be sold or disposed of in accordance with this chapter, with the following exceptions:

(1)    Utility Property and Equipment. If the surplus personal property was originally purchased for utility purposes, the provisions of RCW 35.94.040 shall apply. Council approval is required and a public hearing must be held.

(2)    Assets Valued over Fifty Thousand Dollars. If the value of the asset is estimated to be more than fifty thousand dollars, and if the sale is to another governmental entity, the provisions of RCW 39.33.020 shall apply. Council approval is required and a public hearing must be held.

(3)    Hazardous Materials. Hazardous materials are not accepted as surplus and should be disposed of following applicable laws and regulations.

(4)    City Vehicles. Arrangements for declaring surplus and disposing of vehicles or equipment belonging to the city’s equipment rental fund shall be made with fleet management. If a vehicle or piece of equipment is not in the equipment rental fund but has a vehicle title or certificate of ownership issued by the state of Washington, arrangements for declaring surplus or disposal shall also be made with fleet management. Council approval is required by fleet management prior to auctioning or otherwise disposing of city vehicles.

(b)    City employees shall not directly or indirectly use, take, or dispose of city personal property other than in their official duties. No city owned item shall be turned over to an employee or any other individual for his/her personal use other than items purchased by employee clothing allowances. (Ord. 4363 § 2 (part), 2012)

3.86.040 Methods of disposition.

Surplus personal property, regardless of value, shall be disposed of in an appropriate and legal manner. Purchasing services and the appropriate department director shall determine one of the following methods of disposition that is most appropriate and in the best interests of the city. Preference is given to the sale of surplus personal property to the general public or another government entity. The appropriate approval for the method of disposition shall be obtained as determined by the value of the surplus personal property.

(a)    Transfer to Another Department. Surplus personal property may be transferred between city departments. Departments wishing to transfer surplus personal property to or from another department shall complete a city of Kirkland asset disposition form and submit it to the purchasing services department for review.

(b)    Trade-In. Personal property declared as surplus may be offered as a trade-in for credit toward the acquisition of new personal property. All trade-in offers will be submitted for the review and approval of purchasing services. If surplus personal property is to be applied to a purchase order, the trade-in value shall be itemized on the purchase order.

(c)    Return to Manufacturer. Surplus personal property may, when possible, be returned to the manufacturer for buy-back or credit toward the purchase of new personal property.

(d)    Disposal. Surplus personal property may be offered for sale by the city. The moneys realized from the sale of any such property is to be paid into the fund from which such property was purchased if required by law or into the general fund. All surplus personal property is for sale “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 personal property offered for sale. Appropriate methods of disposal are as follows:

(1)    Public Auction. Surplus personal property may be sold at public auction. The city may use a professional auction service or an online auction site.

(2)    Garage or Yard Sale. Purchasing services, in coordination with participating departments, may hold a public sale of surplus personal property. The sale must be advertised in a newspaper of local circulation at least five days prior to the sale. Prices on all items will be fixed prior to the sale.

(3)    Sealed Bids. Sealed bids may be solicited for the sale of surplus personal property. Surplus personal property disposed of in this manner shall be sold to the highest responsible bidder.

(4)    Selling for Scrap. Surplus personal property may be sold as scrap if the city deems that the value of the raw material exceeds the value of the property as a whole.

(5)    Negotiated Sale. If the city has been unable to find a buyer for surplus personal property after having used a competitive public process, the city may negotiate to sell the personal property outright if a potential buyer is subsequently found.

(6)    Surplus items can be transferred, sold, leased or otherwise disposed of to another public agency. With the exception of weapons, surplus items may also be transferred, sold, leased or otherwise disposed of to a foreign entity (RCW 39.33.010).

(7)    Transferred. Surplus personal property may be sold, transferred, or donated to nonprofit agencies that have the purpose of supporting the poor and infirm (Washington State Constitution Article VIII, Section 7). The human services section should be notified to determine if any nonprofits with existing agreements with the city are interested in receiving the surplus property. If no nonprofit with an existing agreement with the city is found, purchasing services will work with the human services section to find a nonprofit serving the poor and infirm that is interested in receiving the surplus property.

(8)    No Value Item. Where the city determines that specific supplies or equipment are surplus and of minimal value to the city due to spoilage, obsolescence or other cause, or where the city determines that the cost of disposal of such supplies or equipment would exceed the recovery value, purchasing services shall dispose of the same in such a manner as it deems appropriate and in the best interest of the city.

(9)    Garbage Surplus Personal Property. Unusable, broken, and what would reasonably be considered garbage surplus personal property may be recycled. If this is not possible, placing such items in a dumpster or transporting them to a landfill is acceptable. (Ord. 4363 § 2 (part), 2012)

3.86.050 Sale of surplus personal property by sealed bid.

When it has been determined by purchasing services and the appropriate director that surplus personal property valued at five thousand dollars or greater is to be sold using the sealed bid process, the following procedures will apply:

(1)    The city manager must approve this method of sale for items with an estimated value of five thousand dollars to twenty thousand dollars.

(2)    The city council must approve this method of sale for items with an estimated value of twenty thousand dollars or more.

(3)    Notice must be published at least once in a newspaper of general circulation not less than five days before the last date for filing of bids.

(4)    Each bid shall be accompanied by a deposit in the form of a cashier’s check or certified check in an amount equal to or not less than ten percent of the amount of the bid. All such deposits shall be returned to the unsuccessful bidders depositing the same after award of contract has been made. The deposit of the successful bidder shall be applied to the selling price. If the successful bidder fails to consummate the purchase, the deposit shall be forfeited as liquidated damages and the forfeited deposit shall be credited to the appropriate account.

(5)    Sealed bids shall be opened in public by the purchasing services at the time and place specified in the call for bids. The purchasing agent shall make a tabulation of all bids received and forward the bids to the city manager with recommendations.

(6)    The city manager will approve or reject the sale of items for bids less than twenty thousand dollars.

(7)    The city manager will forward all bids received for twenty thousand dollars or more to the city council with recommendations for approval or rejection by the council.

(8)    In the event the council rejects bids, the city manager will direct purchasing services and the department director to determine another approved method of sale or disposal. (Ord. 4363 § 2 (part), 2012)

3.86.060 Sale of surplus personal property to city employees.

Councilmembers and city employees involved in declaring an item of city personal property surplus may not purchase that item directly from the city, regardless of the value of the item. In order to prevent the appearance of a conflict of interest, no city employee or member of the employee’s immediate family may directly acquire personal property from the city if the employee had any role in declaring an item surplus or establishing the value or price of the personal property. Councilmembers or city employees may purchase city surplus personal property when such property is offered to the general public at an auction conducted by a private party, or if the purchase is authorized by a city administrative policy and has been determined to be in the best interest of the city. Councilmembers or city employees will not receive preferential treatment in the disposal or sale of city surplus personal property. (Ord. 4418 § 1, 2013: Ord. 4363 § 2 (part), 2012)