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Home My WebLink About3018 Disposal of Surplus Property ORDINANCE NO. ;7D It' fl AN ORDINANCE RELATING TO THE DISPOSAL OF SURLUS PROPERTY Annotated to show deletions and additions to the code sections being modified. Deletions are bold .., and additions are bold underlined. WHEREAS, the disposal of surplus property is currently governed by Chapter 2.50 relating to public contracting; and WHEREAS, disposal of surplus property is a process that should be separated from public contracting and placed in its own chapter. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Sections 2,54.010 [Disposal of Surplus and Abandoned Property] through 2.54.110 [Proceeds from Surplus Property] are hereby added to read as follows: 2.54 Disposal of Surplus Property 2.54.010 Disposal of Surplus and Abandoned Property. The City of Ashland Finance Department may transfer, trade, auction or sell surplus or abandoned property to other city departments', political subdivisions, state agencies, or non-profit organizations. However, the disposal of surplus property having residual value of more than $10,000 shall be subject to authorization by the Local Contract Review Board. 2.54.020 Definitions The following definitions apply to this chapter: A. "Bid" means a competitive Offer to purchase advertised Surplus Property at a price specified by the bidder. B. "Cash" means U.S, currency, cashier's checks, and money orders made payable to the City of Ashland. C. "Employee's Household" means all persons residing with employee. D. "Employee's ImlTlediate Family" means the children, step-children, parents, stepparents, grandparents and spouse of employee, E. "Invitation to Bid" means a competitive Offer to bid on Surplus Property available for public sale and is also known as a bid 'advertisement. F. "Not-for-profit organization" means a nonprofit corporation as defined in ORS 307.130. G, "Political Subdivision" means divisions or units of Oregon local government having separate autonomy such as Oregon counties, cities, municipalities or other public corporate entities having local governing authority, H. "Purchasing Agent" means the City Administrator or his or her designee, I. "State agency" means every state officer, board, commission, department, institution, branch or agency of state government whose costs are paid Ordinance No. Page 1 of4 wholly or in part frolTl funds held in the State Treasury, and includes the Legislative Assembly and the courts, including the officers an~d committees of both, and the Secretary of State and the State Treasurer in the performance of the duties of their constitutional offices as defined in ORS 279A.250(4), J. "Surplus Property" means all personal property, vehicles and titled equipment property designated as surplus for sale to state agencies, political subdivisions of the State, and private not-for-profit organizations or the general public or any combination thereof. 2.54.030 Surplus Property Offered to Government & Non-Profits A. Prior to offering surplus property,for public sale, the Surplus Property may be made available by direct transfer or direct sale to the following: 1. Other City departments, 2. Political Subdivisions, 3. State Agencies, and 4, Any non-profit organization determined to be eligible by the Purchasing Agent. B. Surplus Property acquired by political subdivisions, state agencies, or qualified not-for-profit organizations through direct sales or transfers must be used only in the conduct of their official public programs. C. Surplus Property must not be acquired through warehouse floor sales or . direct transfer for any use or purpose other than conduct of their official public programs, and not for resale or distribution unless otherwise pre- approved by the Purchasing Agent. D. Non-qualifying private entities and private citizens, separately or combined, must not be eligible to'acquire surplus property except at public sales. 2.54.040 Surplus Property Offered for Public Sale A. The Purchasing Agent must conduct public sales for the disposal of Surplus Property. B. Methods of disposal may include, but are not limited to: oral auctions, sealed bid sales and fixed price retail sales, separately or in any combination thereof. 2.54.050 Conduct of Auctions and Sealed Bid Sales A. The Purchasing Agent must advertise the date, time and location of public auction or sealed bid sales. B. An Invitation to Bid must be available at the auction site of an auction or sealed bid sale. C. The public may inspect property offered for sale at the time and place specified in the Invitation to Bid; D, The Purchasing Agent reserves the right to reject any and all bids regarded as not in the best interests of the City of Ashland; E. All items must be sold to the highest Bidder. All Surplus Property must be offered "As-Is, Where-Is" with no warranty or other guarantee as to its condition or fitness for use. A purchaser or disappointed Bidder does not Ordinance No, Page 2 of 4 have recourse against the City of Ashland or any of their respective officers, employees or agents. F. All sales ITIUst be final. 2.54.060 Eligibility A. Members of the general public may participate as buyers at public sales. B. No employee or volunteer of the donating Department and/or Purchasing, whether full-time, part-time, temporary or unpaid volunteer, or any member of the elTlployee's household, the employee's ilTlmediate family, or any person acting on the employee's behalf lTIay participate in public sales if the employee has had any role in declaring the item surplus, processing the item or related paperwork, or offering it for sale. 2.54.070 Payment , Full payment must be made within five (5) business days, unless otherwise specified in the Invitation to Bid. Payment must by made by cash, cashier's check or money order. The methods of payment, time limit for lTIaking full paYlTlent, and the place where payment must be made will be specified in Invitation to Bid, 2.54.080 Promulgation of Disqualifying Criteria by Resolution The Purchasing Agent may establish criteria to disqualify participants from surplus sales pursuant to this Chapter by Resolution. Such criteria may be based on: A. Conviction of fraud; B. Inappropriate conduct; C. Failure to claim purchases; or D. Other doculTlented activities determined by the Purchasing Agent to warrant disqualification. 2.54.090 Claiming Items A. Items that are not paid for in full and claimed by the time specified in the Invitation to Bid will be offered to the next highest bidder. B. Property paid for, but not claimed within the time specified in the Invitation to Bid must be considered abandoned and ownership must default back to the City of Ashland, unless prior approval is obtained from the City of Ashland Purchasing Agent. C. Title to the property sold will be transferred to the purchaser when payment is made in full. D. An Oregon Motor Vehicles Division trip perlTlits must be obtained to drive unlicensed motor vehicles that are purchased. The purchaser will be responsible for obtaining a trip permit and certifying that the driver of the vehicle has a valid driver's license and is insured as required by Oregon law before a trip penmit can be issued. 2.54.100 Other Means of Disposal of Surplus Property A. With the prior approval of the Purchasing Agent, an authorized designee may transfer computers and related hardware that are surplus, obsolete or '. Ordinance No. Page 3 of 4 unused to a cOlTlmon or union high school district or education service district. The authorized designee may not charge the school district a fee for the transfer. B. The Purchasing Agent may recycle or otherwise dispose of property when the Purchasing Agent determines the value and condition of the property does not warrant the cost of a sale. 2.54.110 Proceeds from Surplus Property The Purchasing Agent shall determine what fund and/or funds will be credited with the proceeds received from the disposal of surplus property. SECTION 2. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 3. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-Iettered, provided however that any Whereas clauses and boilerplate. provisions (i.e. Sections 2-3) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section (C) of the City Charter on the -1L day of ~ ~ ' 2010 and d PASSED and ADOPTED this / day of ,2010. . iii ' Barbara M. Christensen, City Recorder SIGNED and APPROVED this hy of ~, 2010, Attorney Ordinance No. Page 4 of 4