Chapter 3.30
SALE AND DISPOSAL OF SURPLUS CITY-OWNED PERSONAL PROPERTY
Sections:
3.30.030 Declaration of surplus and determination of value.
3.30.040 Disposition of surplus property of low or negligible value.
3.30.050 Property with a value of more than $500.00 and less than $10,000.
3.30.060 Property with a value in excess of $10,000.
3.30.070 Guidelines for decision.
3.30.080 Sale of surplus personal property to another governmental agency.
3.30.090 Trade-in of surplus equipment.
3.30.100 Sale of utility personal property.
3.30.110 Employee and City Council eligibility to purchase surplus personal property.
3.30.010 Purpose and intent.
The purpose of this chapter is to establish procedures for the disposition of property, other than real property, that is surplus to the needs of the City. "Surplus," as it is used in this chapter, is defined as any tangible, City-owned personal property ("personal property") that is no longer needed at present or in the foreseeable future, or that is no longer of value or use to the City. (Ord. O-02-190 § 1).
3.30.020 Administration.
The City Manager is responsible for the administration of this chapter and shall coordinate the disposition of surplus personal property in accordance with this chapter. The City department heads shall cooperate with the City Manager to ensure the most efficient and beneficial disposition of personal property. (Ord. O-02-190 § 1).
3.30.030 Declaration of surplus and determination of value.
A department head or the City Manager may declare an item of personal property or similarly described group of items to be "surplus" within the meaning of this chapter. Such declaration together with a determination of value must be documented by the department head. The determined value must be the reasonable fair market value in "as is, where is" condition. The documentation shall be submitted to the Finance Department to evaluate the determined value, and to the City Manager to evaluate the disposal request. If the request and the value are determined to be reasonable, the City Manager shall select the most appropriate course of action consistent with this chapter. (Ord. O-02-190 § 1).
3.30.040 Disposition of surplus property of low or negligible value.
A. The City Manager may authorize department heads to dispose of surplus property valued at $500.00 or less in the most appropriate manner determined to be in the best interest of the City.
B. The City Manager may authorize a donation of surplus personal property to a specific charitable organization in the greater Maple Valley area that serves the poor and infirm and is tax exempt pursuant to Internal Revenue Code Section 501(c)(3), when the cost of disposition of the property is equal to or exceeds the current fair market value of the property. (Ord. O-02-190 § 1).
3.30.050 Property with a value of more than $500.00 and less than $10,000.
A. If surplus personal property has an estimated value between $500.01 and $10,000, based upon written certification contemplated in MVMC 3.30.030, the City Manager, by way of illustration but not limitation, may dispose of the surplus personal property in the manner that is determined to be in the City's best interest, including:
1. Solicitation of written bids;
2. Public auction;
3. Negotiated sale to one or more designated buyers approved by the City Manager;
4. Transfer to another agency of government at or below reasonable market value; or
5. Lease or loan.
B. If the City Manager cannot dispose of the property in an appropriate manner, the City Manager shall notify the City Council and recommend further action. The City Council will then direct the disposition of the surplus property. (Ord. O-02-190 § 1).
3.30.060 Property with a value in excess of $10,000.
Disposition of surplus personal property with a value of $10,000.01 or greater must be approved by a majority of the City Council. By way of illustration but not limitation, permissible methods of disposition include:
A. Sale by Sealed Bidding.
1. The call for sealed bids shall contain a description of the property to be sold, the location thereof, the name and address of the person to whom the bid shall be sent, the last date for filing bids, and any other pertinent information required by the City Manager. Such call shall be published at least once in the official newspaper of the City not less than 10 days before the last date for filing bids.
2. Each bid shall be accompanied by a deposit in the form of a certified or cashier's check equal to but not less than 10 percent of the amount of the bid. All such deposits so made shall be returned to the unsuccessful bidders after award of the bid, if any. The deposit of the successful bidder shall be applied toward the bid price, or upon failure of the successful bidder to consummate the purchase, such deposit shall be forfeited as liquidated damages and such deposit shall be credited to the appropriate account.
3. Sealed bids shall be opened in public by the City Clerk, or designee, at the time and place specified in the call for bids. The City Clerk, or designee, shall make a tabulation of all bids received and forward the bids to the City Manager for approval or rejection.
4. As a general rule, the City shall accept the highest bid that exceeds the City's estimated value; provided, however, that the City reserves the right to reject all bids. In the event no bids are received or accepted, or no bid exceeds the City's estimated value, the City Manager may either ask for new sealed bids or direct the sale or disposition of such surplus personal property under procedures adopted pursuant to MVMC 3.30.050.
B. Sale by Live Auction.
1. The City may conduct an independent auction or cooperate with another public entity for the disposition of surplus personal property. If the City conducts an independent live auction, the City shall publish a notice of the live auction, a description of the property to be sold and any other pertinent information required by the City Manager at least once in the official newspaper not less than 10 days before the auction.
2. As a general rule, the City shall accept the highest bid that exceeds the City's estimated value; provided, however, that the City reserves the right to reject all bids. In the event no bids are received or accepted, the City Manager may direct the sale or disposition of such surplus personal property under procedures adopted pursuant to MVMC 3.30.050.
C. Negotiated sale to one or more designated buyers.
D. Transfer to another agency of government at or below reasonable market value.
E. Lease or loan. (Ord. O-02-190 § 1).
3.30.070 Guidelines for decision.
The disposition of all personal property under this chapter shall be conducted 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. Intergovernmental cooperation; and/or
E. The general welfare of the City. (Ord. O-02-190 § 1).
3.30.080 Sale of surplus personal property to another governmental agency.
A. Sale or disposition of surplus personal property with an estimated value of $50,000 or less to another governmental entity shall be in accordance with procedures adopted pursuant to MVMC 3.30.050; provided, however, that surplus personal property with an estimated value between $10,000.01 and $50,000 shall require Council concurrence.
B. Sale or disposition of surplus personal property with an estimated value in excess of $50,000 to another governmental entity shall be in accordance with the procedures for public notice and hearing in RCW 39.33.020. (Ord. O-02-190 § 1).
3.30.090 Trade-in of surplus equipment.
A. Notwithstanding MVMC 3.30.080, approval of the City Council is not required for the trade-in of surplus equipment with a value in excess of $2,000 when purchasing new equipment of the same type; provided, that a fair market value is being obtained for the trade-in.
B. When surplus City property has been certified for trade-in by a department head in accordance with this chapter, such trade-in may be approved by the City Manager in accordance with informal procedures. (Ord. O-02-190 § 1).
3.30.100 Sale of utility personal property.
Sale or disposition of surplus personal property originally acquired for public utility purposes shall be conducted in accordance with the procedures for public notice and hearing in RCW 35.94.040. (Ord. O-02-190 § 1).
3.30.110 Employee and City Council eligibility to purchase surplus personal property.
No City employees or members of their immediate family, and/or members of the City Council or members of their immediate family, may acquire such property if the City employee or official had any role in establishing the valuation or price of said property. (Ord. O-02-190 § 1).