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CC Resolution 2015-046 Surplus & Equipment PolicyRESOLUTION NO.2015 - 046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING A SURPLUS PROPERTY AND EQUIPMENT POLICY WHEREAS, purchasing, contracting, grant acceptance, and disposal policies provide a guideline to City employees for the purchase and acceptance of goods, services and funds used to supplement city operations, and for the disposal of goods that are no longer needed or unusable; and WHEREAS, purchasing, contracting, grant acceptance, and disposal policies provide transparency and consistency;. and WHEREAS, purchasing, contracting, grant acceptance and disposal policies enable the Finance Department and the City Manager to maintain a system of financial controls for the efficient use, expenditure and disposal of public funds and property; and WHEREAS, the ability to sell, auction, donate or transfer surplus property that is no longer in use by the City of La Quinta is an act that is taken solely for the common benefit of the City and its citizenry. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The Surplus Supplies and Equipment Policy attached hereto as Exhibit A and incorporated herein by reference shall govern the disposition of the City's surplus property (excluding real property) in a manner that is for the common benefit, whether it be through transfer, sale, auction, disposal, or donation. SECTION 2. This Policy, as applicable, shall constitute the procedures and rules governing the disposal of all of the City's non -real, surplus property pursuant to Chapter 3.12 of the La Quinta Municipal Code. SECTION 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 4. This Resolution shall become effective on the some day Ordinance No. r5291 becomes effective. Resolution No. 2015-046 Surplus & Equipment Policy Adopted: October 6, 2015 Page 2 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 6th day of October 2015, by the following vote: AYES: Council Members Franklin, Osborne, Pena, Radi, Mayor Evans NOES: None ABSENT: None ABSTAIN: None LINDA EVANS, Mayor City of La Quinta, California ATTEST: tzT�� b444�_ SUSAN MAYSELS, City Cl<jW City of La Quinta, California (CITY SEAL) APPROVED AS TO -FORM: (its P � • � a�!J' WILLIAM H. IHRKE, Ci y Attorney City of La Quinta, California Resolution No. 2015-046 Surplus & Equipment Policy Adopted: October 6, 2015 Page 3 EXHIBIT A CITY OF LA QUINTA, CALIFORNIA SURPLUS SUPPLIES AND EQUIPMENT POLICY SECTION I. Purpose. To set forth the City of La Quinta's administrative policy for the transfer and disposition -of surplus personal property, equipment and materials, pursuant to the power granted onto the City Council pursuant to Article 1 of the Charter of the City of La Quinta, and Chapter 3.12 of the La Quinta Municipal Code. SECTION II. Definitions. (1) The term "City" means the City of La Quinta. (2) The term "nonprofit organization" means any charitable organization exempt under Section 501(c)(3) of the United States Internal Revenue Code, or successor statute. (3) The term "public agency" means the United States or the State of California or any agency or subdivision thereof, including any city, county, special district, or school district. (4) The term "surplus property" as used herein is used generically to describe any City personal property, equipment or material that is no longer needed or usable by the holding department. For purposes of this policy, all surplus property including scrap, recyclables, trash, and/or junk disposed, discarded or abandoned on City premises, including all surplus property placed in storage or collection containers of any kind, is hereby deemed to be City property and not property of any City employee. "Surplus property" does not include real property or any interest in real property. (5) The terms "scrapping" and "recycling" as used herein refer to the act of transferring discarded surplus .property, including scrap or recyclables, to a vendor for use, salvage or resale. (6) The terms "scrap" or "recyclables" as used herein refer to surplus property that (a) may be reused "as is" or after repair, or (b) may be salvaged for its mineral value after treatment or processing. Resolution No. 2015-046 Surplus & Equipment Policy Adopted: October 6, 2015 Page 4 (7) The term "trash" or "junk" as used herein refers to surplus property which has no practical salvage or recyclable value. SECTION III. Methods of Transfer and Disposition. All surplus property is disposed of "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 property offered unless expressly authorized by the City Council. (1) Transfer to Another Department. Surplus property may be transferred between City departments. All surplus property will first be considered for transfer for the benefit of the city. (2) Trade -In. Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property. (3) Return to Manufacturer. Surplus property may, when possible, be returned to the manufacturer for buy-back credit. (4) Donation. Surplus property may be donated or sold at less than estimated value to any public agency or nonprofit organization. (5) Sale and Disposal. Appropriate methods of sale and disposal are as follows: (a) Auction. Surplus property may be sold at public auction. Auctions may be conducted by City staff, or the City may contract with a professional auctioneer or electronic auction site. (b) Sealed Bids. Sealed bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner shall be sold to the highest responsible bidder, and the procedure for soliciting and awarding by sealed bid shall follow the procedure for bidding public works contracts as established by the City Council. (c) Scrapping. Surplus property may be sold, auctioned, recycled, donated, or discarded as scrap if the value of the surplus property's parts exceeds the value of the surplus property as a whole. (d) No Value Item. Where the property is of minimal or no value to the City due to spoilage, obsolescence or similar reason, or where the cost of disposal of such surplus property would exceed the recovery value, the surplus property may be sold or disposed in such a manner as appropriate and in the best interest of the City. Resolution No. 2015-046 Surplus & Equipment Policy Adopted: October 6, 2015 Page 5 SECTION IV. Procedures. Consistent with California Government Code Section 37350, the City Council sets forth the policy of the City for disposal or destruction of surplus property. (1) City Council- and City Manager -Directed Transfers and Dispositions. Transfers and dispositions of surplus property consistent with the methods in Section III above, are hereby authorized according to the following: a. Property with an Estimated Market Value Exceeding $500. Once a department head has identified surplus property, the transfer or disposition of surplus property with an estimated market value exceeding $500 per item shall be determined by the City Council pursuant to a specific agenda item on an agenda for a regular or special City Council meeting. b. Property with an Estimated Market Value of $500 or Less. Once a department head has identified surplus property, the City Manager may direct the transfer and disposition -of such surplus property with an estimated market value of $500 or less per item. (2) Identifying and Valuing Surplus Property. Each department head is responsible to identify surplus property regularly. (a) Each department head will evaluate the operational status of the surplus property and notify the Finance Director in writing. (b) The Finance Director will circulate the surplus property notification between the other departments within the City. (c) The department head from which the surplus property originates will determine the estimated market value of the surplus property and recommend the most fiscally advantageous method of disposal. (d) In determining the estimated market value, the department head shall document the methods used to make such determination including tools such as Kelly Blue Book, classified advertisements, and vendors in the United States with similar products available. (e) The estimated market value will consider a computation of expenses associated with the disposal of surplus property. These expenses may include advertising, auction costs, storage and other costs. Resolution No. 2015-046 Surplus & Equipment Policy Adopted: October 6, 2015 Page 6 (3) Accounting for the Disposition of Surplus Property. It is critical to maintain all documentation for audit purposes regarding the disposition of surplus property. (a) Notice to Finance Director. Notification will be provided to the Finance Director in writing of any transfer or disposal of surplus property to a different location or department. (b) Proceeds from Transfer and Disposition of Property. When so authorized to transfer, sell, dispose, donate, recycle, or scrap surplus property by the City Council or the City Manager pursuant to this policy, the employee directed to undertake such activity shall remit the entire proceeds from any such activity to the Finance Director by check or money order made payable to the City of La Quinta, and shall be deposited into the general fund or, if required by law, deposited into a special purpose fund, of the City. (c) Notification and Documentation. The department head will notify the Finance Department in writing of the disposition of all surplus property and attach all supporting documentation, including the records required by this policy. (d) Transfer of Ownership and Title. Delivery of the surplus property together with transfer of ownership and title passes upon receipt of the proceeds. The Finance Director shall cause licenses and title documents to be executed and transferred upon verification of receipt of funds. (e) Inventory Adjustment. The Finance Department shall make adjustments to the City's inventories/assets lists showing the disposition of surplus property. (f) Recordkeeping. Copies of all records documenting the surplus property process will be kept on file with the Finance Department for so long as records are to be maintained by the City's records retention policy and by applicable law. (4) Personal Scrapping, Recycling or Disposal of Trash or Junk (Unauthorized). It is the policy of the City that no employee may engage in any sale, scrapping or recycling or other transfer or disposal of surplus property, unless specifically directed to engage in such activity by the City Council or the City Manager who have been lawfully and duly authorized and designated to direct such activity pursuant to this policy. Transferring, selling, donating, scrapping, recycling or disposing of surplus property, regardless of monetary value, by City employees for personal gain or to benefit the interest of any person or party other than the City, is strictly forbidden. (5) Surplus Property and Employees. City officials and employees shall be allowed to be the purchasers or direct recipients of any surplus property of the City, on the condition that they acquire the surplus property according to this Policy. Resolution No. 2015-046 Surplus & Equipment Policy Adopted: October 6, 2015 Page 7 Furthermore, when attempting to acquire surplus property, City officials and employees must be treated the same as the general citizenry and are therefore subject to all of the same notice, value, and accounting requirements as set forth in this Policy. (6) Exceptions. Any exceptions to this policy will only be made at the direction of the City Manager; provided, however, that no exception may be made concerning the transfer or disposition of surplus property exceeding $500 in estimated market value per item without the approval of the City Council. SECTION V. Discialinary Action(s). Appropriate disciplinary action, up to and including termination, will be taken if an employee is found, through proper investigation and application of appropriate process, to: (1) Have failed to promptly remit to persons officially designated to receive proceeds, including cash or other consideration, from the sale of surplus property; (2) Have failed, in the performance of their duties, to promptly place in appropriate City containers, bins, dumpsters, or other collection facilities, equipment or containers, or have received, taken, given away, collected, stored or retained in other than appropriate City containers, bins, or collection facilities, or dump sites, City scrap, recyclables, trash or any such surplus property belonging to City tenants; (3) Have engaged in selling, scrapping, recycling or handling of surplus property in violation of this policy or the procedures set forth herein, including having engaged in any such activity for their personal interest or gain, or in aid of others doing the same for their respective interest or gain; (4) Have used City vehicles, facilities or equipment to collect, store, or transport surplus property to sites, locations, or facilities, including the facilities of scrap vendors or recycling centers, except as specifically directed by the authorized City Manager, in accordance with this policy and the procedures set forth herein; or (5) Have failed to notify his/her department director in a prompt and timely manner after having observed any individual engaging in any of the above -described act(s) or having learned that such act(s) were being committed by other City employees.