(a) Salvage property or Junk property Surplus property
Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning:
means personal property, other than items routinely discarded as waste, that because of use, time, accident, or any other cause is so worn, damaged, or obsolete that it has no value for the purpose for which it was originally intended and the cost of seeking competitive bid exceeds the value of the property or the property has been competitively bid without successful receipt of a response.
means personal property that:
(b)
Applicability.
This section shall apply to personal property owned by the city that is either (a) salvage property or junk property; or (b) surplus property. Both herein collectively referred to as "excess property."
(c)
Duties of department heads.
Department heads shall periodically assess and determine the status of personal property within the possession and control of the department. Personal property requiring replacement shall be budgeted and scheduled for phasing out. Department heads shall account for all property in the possession and control of the department and, at least annually, provide the city manager with a list of personal property which has become excess property. The department shall maintain all property until proper authorization has been received to dispose of the excess property. Salvage property with an original value of $10.00 or less, such as pens, disposable office supplies, pool supplies, etc., which have become worn, damaged or fully utilized may be discarded without necessity of authorization from the city manager.
(d)
Authority of city manager.
The city manager shall review and evaluate the appropriateness of declaring personal property excess property at the recommendation of the department head. Excess property of one department which is needed in another department or branch of the city shall be transferred to such department without being deemed excess property. All other excess property shall be considered for disposal or conveyance pursuant to the procedures of this section.
(e)
Disposal of property.
Authorization herein to dispose of excess property is authorization to use best efforts to dispose of excess property for the highest price without costing the City more to dispose of such property.
(1)
During the budget process, the city manager shall identify major equipment for which a title is held in the name of the city, such as cars, which will be replaced with new equipment or otherwise liquidated, and shall include such information in the budget. Items identified for replacement in the budget shall be authorized to be disposed of as surplus or, if qualifying, salvage property without further action of the city council, in a manner set forth in this section.
(2)
Salvage or junk property may be utilized as a trade-in on new property of the same general type without further action by the city council. Surplus property may be utilized as a trade-in on new property of the same general type upon approval of the city council.
(3)
Salvage or junk property constituting scrap, for which undertaking to sell the property under subsection 2-1(f) would likely result in no bids or a bid price that is less than the city's expenses required for the bid process, may be destroyed or otherwise disposed of as worthless without further action of the city council, or may be offered to a qualifying non-profit or civic organization upon approval of the city council.
(4)
Surplus property shall be offered for competitive bid as set forth in subsection 2-1(f) without further action of the city council, or may be offered to a qualifying non-profit or civic organization upon approval by the city council provided the organization services to the city are sufficient to authorize such transfer.
(5)
A qualifying non-profit or civic organization receiving excess property from the city must provide the city with adequate compensation, such as relieving the city of transportation of disposal expenses related to the property.
(6)
Excess property receiving no bids in an auction or competitive bids may be deemed salvage property and may be disposed of in a manner provided in this section.
(7)
Property in the possession of the city police department subject to disposal standards of the Code of Criminal Procedure or other property in any departments possession for which another statute requires specific procedures for disposal shall follow the procedures set forth therein.
(f)
Competitive bidding.
Surplus property required to be bid shall be sold either through an approved auction facility or through competitive bid. Notice of a bid shall include a description of the surplus property to be sold, and the date and time sealed bids will no longer be accepted. The highest, qualifying, bidders shall be sold the surplus property. Notice shall be included in the official newspaper at least twice with the first notice being at least 14 days before the sale and the second being one week later. Notice shall also be posted on the city's official website.
(g)
Proceeds of sale or non-sale disposition.
Any and all proceeds of the sale shall be deposited in the treasury of the city and accounted for in the financial records of the city. Any excess property exchanged or traded for value shall be added to the appropriate inventory of property of the city.
(h)
Prohibited employee transfers or conversions.
Employees shall be strictly prohibited from purchasing surplus or salvage property from the city or benefiting from the sale or transfer of such property. Persons related in the first degree of affinity or consanguinity to an employee may not purchase or have property transferred to them, except for property sold at a competitive bid.
(Ordinance 566, §§ 2—9, adopted 4/21/2009)