425City of Anaheim Administrative Regulation
CHAPTER 4 - CITY PROPERTY
Subject: Disposition of City Owned A.R. 425
Surplus Personal Property Issue Date: Aug. 1, 1984
Revised: May 1999
Sept.17, 2003
Page (1) of (3)
Purpose:
The purpose of this regulation is to establish a procedure for the disposition of City
owned surplus and/or obsolete equipment and scrap material. The Purchasing Agent is
responsible for the sale of City surplus personal property having a value of $50,000 or
less.
No equipment, material or property will be sold to or given to a City employee except
through public auction or sealed bids open to the general public.
No City employee shall be permitted to bid or knowingly come into ownership of any
property in which the employee participates in the disposition process.
Prior to the disposition of any equipment which might reasonably be subject to product
liability claims through its subsequent use, the Purchasing Agent shall obtain a written
disclaimer holding the City harmless against any such claims.
Any known defect, not readily apparent through visual inspection, shall be identified in
writing by the Department owning the property and made known to any potential buyer.
No property involved in an accident or claim against the City shall be disposed of without
the prior approval of the Risk Manager and the City Attorney.
Should the Purchasing Agent be unable to obtain any offer after solicitation of bids he
may then dispose of the property by whatever means is in the best interest of the City.
The proceeds of a sale shall be credited to the General Fund except for the sale of certain
high value items originating from enterprise programs. When items originating from
enterprise funds have sufficient value to warrant the added costs of separate handling,
disposition, and accounting functions, they may be segregated from the lot of City
surplus, sold separately and the proceeds will be credited to the originating enterprise
fund.
City of Anaheim Administrative Regulation 425
Page (2) of (3)
The Purchasing Agent shall maintain documentation of the disposal of all surplus and/or
obsolete equipment and scrap material. Documentation shall include date and method of
disposition, sale price and name and address of buyer.
The sale of items with a market value in excess of $50,000 shall be conducted in
accordance with Charter section 1222, and shall be subject to the approval of City
Council.
Procedures:
Definitions:
Surplus and/or Obsolete - equipment, material or property which has functional value but
is no longer required by the using organization. For the purpose of the procedure
described below, the words equipment, material and property are used interchangeably
and have the same meaning.
Scrap - equipment, material or property that is no longer capable of performing its
intended function without extensive repair, and/or material that is of no value except for
reclamation purpose.
Disposition Process - the sequence of events involved with the disposal of items initiating
with the original recommendation to dispose of an item through the physical removal
from City property and transfer of title.
Surplus and/or Obsolete Equipment Material:
The applicable Department Head will notify the Purchasing Agent in writing of the
existence of surplus and/or obsolete equipment and material and request disposition
instructions. The above notification will list each item, acquisition, date or estimated age,
condition, acquisition price if known, and any known defect not readily apparent through
visual inspection. If the equipment is of a specialized nature, a brief description of its
function shall be included.
It shall be the Department Head's responsibility to provide, with the request, a release
from the Risk Manager and the City Attorney if the equipment was involved in an
accident or is the subject of a claim.
Should any surplus item be of immediate use to another Department within the City,
Purchasing may transfer the equipment to the program they believe can best use the
equipment.
The Purchasing Agent may dispose of the equipment by public auction, sealed bids,
negotiations, or trade-in allowance on the purchase of other City property.
City of Anaheim Administrative Regulation 425
Page (3) of (3)
Scrap Material:
The applicable Program Manager will notify the Purchasing Agent in writing of the
existence and location of scrap material. The notification will include material
composition (i.e. metallic, paper, plastic or chemical content), Department liaison,
Department Head certification that the material is scrap.
The Purchasing Agent will dispose of such material by public auction, sealed bid or
negotiation.
Responsibility:
Attachments: None
Additional References: City of Anaheim Charter section 1222
City of Anaheim Municipal Code section 1.04.315