CITY OF TEXARKANA, AR

REQUEST FOR BOARD ACTION

 

AGENDA TITLE: Adopt an Ordinance to establish a policy for the sale and disposal of equipment determined to be surplus, obsolete, in disrepair, and/or not needed. (BOD) (This item was added to the agenda at the request of Assistant Mayor Laney J. Harris.)

AGENDA DATE:  May 16, 2016

ITEM#:  9

DEPARTMENT: Board of Directors

DATE SUBMITTED: May 4, 2016

PREPARED BY:  Assistant Mayor Laney J. Harris

SUBJECT:  Surplus equipment

EXHIBITS:  Ordinance and Resolution No. 5465.

Sample of Arkansas Cities Surplus Auctions:

http://www.fayetteville-ar.gov/713/City-Surplus-Auctions,

Benton, Arkansas

APPROVAL: 

This item was added to the agenda at the request of Assistant Mayor Laney J. Harris.

 

EXPENSE REQUIRED: $0.00

AMOUNT BUDGETED: $0.00

APPROPRIATION REQUIRED:  $0.00

SUMMARY :  This item was added to the agenda at the request of Assistant Mayor Laney J. Harris.

BOARD ACTION:  This item was added to the agenda at the request of Assistant Mayor Laney J. Harris.

EMERGENCY CLAUSE:  No emergency clause is requested. 

 

Ordinance Updated by Assistant Mayor Harris May 16, 2016

ORDINANCE NO. ______

AN ORDINANCE TO ESTABLISH A POLICY FOR THE SALE AND DISPOSAL OF THE CITY OF TEXARKANA, ARKANSAS’ EQUIPMENT DETERMINED TO BE SURPLUS, OBSOLETE, IN DISREPAIR, AND/OR NOT NEEDED; AND FOR OTHER PURPOSES.

 

WHEREAS, the purpose of this ordinance is for the public importance for the City of Texarkana, Arkansas to establish a policy for the periodical sale or disposal of surplus equipment to include certain equipment, machinery, vehicles, computer related equipment, etc.; and

WHEREAS, the law reference to establish by ordinance of surplus equipment disposal can be found at Arkansas Code Annotate 14-58-306; and

WHEREAS, it is in the public interest for the City of Texarkana, Arkansas to periodically sale or dispose of certain equipment, machinery, vehicles, or materials which, by the description is obsolete, in disrepair and/or not needed, and has been determined by the City of Texarkana, Arkansas’ Board of Directors to be surplus to the needs of the City; and

WHEREAS, the City of Texarkana, Arkansas desires to establish a uniform policy, which provides that obsolete, in disrepair and/or not needed equipment will be offered for sale to the general public in an open, transparent, and cost effective manner, and assures some type of accountability  in the process of being declared surplus and offered for sale;

NOW THEREFORE, BE IT ORDAINED BY THE CITY OF TEXARKANA ARKANSAS BOARD OF DIRECTORS that:

Section 1.        Title.  This ordinance shall be known as the “City of Texarkana, Arkansas Surplus Equipment Policy” and shall be the official guideline for the sale and disposal of the City’s surplus equipment.  Surplus City equipment shall not include real property for this chapter.  This ordinance shall not apply to assets or property of Texarkana Water Utilities.

Section 2.        Authority to declare equipment as surplus by the City’s requirements.  The City Manager or any Department Head may request for any City equipment for sale or disposal as surplus equipment.  The requests for shall be forwarded to the Texarkana, Arkansas Board of Directors for the final decision declaring and authorizing the sale of surplus equipment.  It shall be the official policy of the City of Texarkana, Arkansas that no City-owned equipment shall be sold, or offered for sale, traded, and/or donated, as surplus equipment without the prior approval by the Texarkana, Arkansas Board of Directors.  The Board’s authorization to sell or dispose of surplus equipment shall be in the form of a resolution.

Section 3.        Surplus Equipment Request.  The City Manager or his designated    representative may request approval of surplus equipment for the sale or disposal.  All information requests of Surplus Equipment shall be promptly forwarded to the Texarkana, Arkansas Board of Directors for consideration.

As a minimum, such statement shall contain the following information:

a)      A brief description of the item proposed for sale or disposal, including manufacturer model number, serial number, VIN, age or year purchase and condition.

b)      The department or office to which the equipment is assigned.

Section 4.        Surplus equipment criteria.  The following shall be considered for any equipment to be deemed surplus:

a)      The age and condition of the equipment.

b)      The cost of replacing or repairing the equipment, if any.

c)      The item or its function has been totally replaced by other City equipment and no probable future function exists or the item does not meet the public needs.

d)     The anticipated remaining life of the equipment.

e)      The item is no longer reliable or is not economical to perform the work required of it.

f)       The estimated value of the supplies, material or equipment.

g)      Whether the supplies, material or equipment might reasonably, safely, and efficiently be used by another City department or office.

Section 5.        Sales procedures.  Unless otherwise directed by the City of Texarkana, Arkansas Board of Directors, all surplus equipment approved for sale shall be sold according to the following procedure:

a)      The City Manager shall be wholly and solely responsible for advertising and conducting all surplus equipment sales.

b)      The preferred method of sale shall be a public auction, on a cash basis.  When a public auction is not practical or efficient, the City Manager or his designated representative may direct the sale to take place by means of sealed bids. The opening of all sealed bids shall take place in a meeting open to all bidders and the general public.  The City reserves the right to reject any and all sealed bids.  All items will be sold in an “as-is” condition with no express or implied warranty to the person submitting the highest bid.

c)      The City policy shall state the sale of surplus supplies, materials or equipment shall be awarded to the highest bidder at all times.

d)     All surplus equipment auctions and requests for sealed bids shall be advertised at least a minimum of 30 days in advance in a newspaper of local circulation. Additionally, the City Manager is encouraged to advertise surplus equipment sales on the City’s website, and a poster or notice of sale placed at public facilities throughout the City.  No public auction or awarding of bids shall occur under this Chapter unless a description of the item to be sold and an advance notice of the time and place for such auction or bid submission is first published as a Public Notice in a local newspaper, and at least one notice shall be published not less than two days prior to the date of the sale.

e)      Negotiated or trade-in sales are permitted with prior approval of the City of Texarkana, Arkansas Board of Directors.

f)       Prior to the sale, all City logos or other symbols are to be removed or destroyed from the items to be sold.

g)      The City Manager may place any item in other city or county auctions or online auctions.

h)      The Department Head responsible for the item shall determine the time in which the successful bidder must take possession of said item.  Different arrangement may be made with the auctioneer and the buyer approval.

i)        In the event the item is not removed within the time approved, the item shall revert to the City and the amount of the bid shall be forfeited to the City.  In the event no bids are received and the item has been certified as being worthless by damage or prolonged use with only residual value, the item shall be disposed of as directed by the City Manager.

j)        The City shall consider government or non-government not for profit organization offers in regard to the City surplus sales to the public.

k)      Any item declared as surplus may be sent to the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration.

Section 6.        Sale of dangerous or restriction equipment.  It shall be the policy of the City of Texarkana, Arkansas to avoid the sale of surplus equipment that might reasonably be dangerous to the ultimate purchaser.  Dangerous or hazardous items shall include but are not limited to the following:

a)      Surplus firearms, other weapons or ammunition.  Such items may only be offered for sale to a public law enforcement agency or current or former certified officer of a law enforcement agency or a licensed gun dealer.  No uniform or personal attire such as hats, shoes, boots, jackets, tactical gears, stun guns, Tasers etc.; of City law enforcement shall be sold or offered to the public by any means.

b)      Volatile or highly toxic chemicals.

c)      Equipment and materials that cannot be operated or used in a safe manner due to being obsolete, a product defect, lack of maintenance, etc.

Section 7.        Conveyance of Title, Bill of Sale.  The City Manager shall hereby be authorized and directed to execute and attest, respectively, for and on behalf of the City of Texarkana, Arkansas, conveyance of Title and/or Bill of Sale of surplus equipment with notice to the City’s Finance Department to modify the record for insurance and inventory purposes.  The Office of the City Clerk shall keep the records of Titles and Bills of Sale for surplus equipment sold or transferred with a previous City Title.

Section 8.        Disposition of Surplus City Equipment.  Whenever the City has amassed surplus City equipment, the item(s) shall be disposed pursuant to this ordinance by the City Manager or his designated representative in such a manner as determined to be cost effective at all times.

Whenever this Section provides for an auction or other disposition of any equipment, the City Manager, Department Head, or his designated representative shall be authorized to hire an auctioneer or take such other action as is necessary to properly dispose of the supplies, materials or equipment; provided however, that the fees of such auctioneer and all such costs, other than those for City labor and the use of City equipment do not exceed the payment received by the City from the auction or sale of the surplus equipment.

Section 9.        Competitive Bidding.  The City Manager or his designated representative, pursuant to the previous Subsection, shall utilize competitive bidding as follows:

a)      No item or lot of supplies, material, or equipment that is to be disposed of as one unit shall be sold without competitive bidding if the amount exceeds Five Hundred Dollars.

Section 10.      Determination of Fair Market Value.  Whenever this Chapter requires a determination of the fair market value of surplus equipment, that determination shall be made by the City Manager whose decision shall be final.  Whenever the fair market value of approved surplus item or lot is less than Five Hundred Dollars at the City Manager’s discretion, the item can be disposed of in a landfill, salvaged for scrap, or sent to a local recycle center.

Section 11.      Funds from the sale of surplus equipment.  All monies from the sale of surplus equipment, less expenses in regard to this ordinance, shall be turned in to the Finance Department in order for monies to be deposited into the account from which the surplus equipment originated.

Section 12.      The City Manager or his designated representatives, is hereby authorized to execute and deliver any and all further agreements, certificates, releases, and such other writings, and to do all things necessary and appropriate upon the advice and counsel of the City Attorney, to give effort to the transaction contemplated in this ordinance.

Section 13.      Severability.  In the event of any title, section, paragraph, item, sentence, clause, phrase, or word of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration of adjudication shall not affect the remaining portions of the ordinance which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the ordinance.

Section 14.      Repeal.  All ordinances and resolutions, and parts thereof, which are in conflict with any provision of this ordinance are hereby repealed to the extent of such conflict.

PASSED AND APPOVED this 16th day of May, 2016.

 

_____________________________

Ruth Penney Bell, Mayor

 

ATTEST:
________________________________

Heather Soyars, City Clerk

 

APPROVED:

________________________________

George M. Matteson

 

 

 

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