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 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. 06-332 § 1)
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 and division managers shall cooperate with the city manager to ensure the most efficient and beneficial disposition of personal property.
(Ord. 06-332 § 1)
A department head, division manager or the city manager may declare an item of personal property or similarly-described group of items "surplus" within the meaning of this chapter. The declaring official must document such declaration, together with a determination of value. The determined value must be the reasonable fair market value in "as is, where is" condition. The documentation shall be submitted to the budget manager 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. 06-332 § 1)
A. 
The city manager may authorize department directors or division managers to dispose of surplus personal property valued at $500.00 or less in the most appropriate manner determined to be in the best interest of the city.
B. 
When the cost of disposing the property is equal to, or exceeds the current fair market value of the property, the city manager may authorize donation of surplus personal property to a nonprofit, charitable organization that serves the poor and/or infirm and is tax exempt under the Internal Revenue Service Code Section 501(c)(3).
(Ord. 06-332 § 1)
A. 
If surplus personal property has an estimated value between $500.01 and $10,000, based upon written certification contemplated in NMC § 3.50.030, the city manager may dispose of the surplus personal property in the manner 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.
B. 
If the city manager cannot dispose of the property in any of the manners identified above, 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. 06-332 § 1)
Disposition of surplus personal property with a value of $10,000.01 or greater shall be approved by a majority of the city council. 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, its location, the name and address of the person to whom the bids shall be sent, the last date for filing said bids, and any other pertinent information required by the city manager. Such call for bids shall be published one time in the city's official newspaper of record at least 10 days before the bid opening date, and may be published in other advertising media.
2. 
Each sealed bid shall be accompanied by a deposit in the form of a certified or cashier's check, equal to at least 10 percent of the amount of their bid. Deposits submitted by unsuccessful bidders shall be returned to the unsuccessful bidder within five business days of the bid opening. The deposit of the successful bidder shall be applied toward the bid price, or upon failure of the successful bidder to transact the purchase, such deposit shall be forfeited as liquidated damages and such deposit shall be credited to the appropriate account.
3. 
The city clerk, or his/her designee, shall open sealed bids publicly at the time, date and place specified within the call for bids. The official conducting the bid opening shall create a matrix during the bid opening which will include, at a minimum, the bidder's name, date/time bid was received, a notation as to whether or not a deposit was received (perhaps resulting in a nonresponsive bid), the amount/form of the deposit, and the total bid price. Bid results shall be posted in a conspicuous location on the city's website no later than one hour from the adjournment of any bid opening.
4. 
As a general rule, the city shall accept the highest bid that exceeds the city's estimated value; provided, however, the city reserves the right to reject any/all bids. In the event no bids are received or accepted, or in cases where no bids exceed the city's estimated value, the city manager may ask for new sealed bids or direct the sale or disposition of such surplus personal property under procedures adopted pursuant to NMC § 3.50.050.
B. 
Sale by Public Auction.
1. 
The city may conduct an independent public auction or cooperate with another public entity for the disposition of surplus personal property. Should the city conduct an independent public auction, notice of public auction shall be published within the city's official newspaper of record and must include a description of the property to be sold and all other pertinent information required by the city manager one time in the city's official newspaper of record at least 10 days before the bid opening date. Notice may also be published in other advertising media.
2. 
As a general rule, the city shall accept the highest bid that exceeds the city's estimated value; provided, however, the city reserves the right to reject any/all bids. In the event no bids are received or accepted, the city manager may direct the sale or disposition of the surplus personal property under procedures adopted pursuant to NMC § 3.30.050.
C. 
Negotiated sale to one or more designated buyers.
D. 
Transfer to another municipality at or below reasonable market value.
E. 
Lease.
(Ord. 06-332 § 1)
The disposition of all surplus personal property under this chapter shall be conducted in the city's best interests. Factors included when 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. 
General welfare of the city.
(Ord. 06-332 § 1)
A. 
Sale or disposition of surplus personal property with an estimated value of $50,000 or less to another municipality shall be in accordance with procedures adopted, pursuant to NMC § 3.50.050 of this chapter; provided, however, personal property with an estimated value between $10,000.01 and $50,000 shall require city council concurrence/approval.
B. 
Sale or disposition of surplus personal property with an estimated value in excess of $50,000 to another municipality shall be in accordance with the procedures for public notice and hearing as contained in RCW 39.33.020.
(Ord. 06-332 § 1)
A. 
Notwithstanding NMC § 3.30.080, approval of the city council is not required for the trade-in of surplus equipment when purchasing new equipment of the same type, provided a fair market value is obtained for the trade-in.
B. 
When surplus personal 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 an informal written manner.
(Ord. 06-332 § 1)