Cupertino Municipal Code Ch. 3.25 Sale of Surplus Supplies and Equipment

In order to establish efficient procedures for the sale of surplus supplies and equipment at the highest possible return, to exercise positive financial control over such sales, and to define clearly the authority for the administration of these functions, a surplus sales system is adopted.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

The City Manager or appointee shall be and is appointed to perform the functions of the Surplus Sales Officer for the City and shall have the responsibility and authority to:

A. Sell surplus supplies and equipment as maybe required by any department or other agency of the City in accordance with procedures prescribed either by this chapter, or by such administrative rules and regulations as the Surplus Sales Officer may adopt pursuant thereto;

B. Prepare and adopt administrative rules and regulations not in conflict with the provisions of this chapter for the purpose of carrying out the requirements and intent of this surplus sales system.

(Ord. 1893, (part), 2002; Ord. 1061, 1980; Ord. 808, (part), 1977)

A. To the extent that efficiency and fairness may best be achieved in the sales of surplus supplies and equipment of the City, the acceptance of all bids and the sales of all department or agency surplus supplies and equipment shall be centralized under the Surplus Sales Officer.

B. When the provisions and intent of this chapter may best be served by so doing, the Surplus Sales Officer may authorize, in writing, any department or agency of the City to investigate, solicit bids, or to negotiate the sale of surplus supplies and equipment of the department or agency, independently of the centralized sales system, provided that such actions shall be done in conformity with the procedures prescribed either by this chapter, or by duly adopted administrative rules and regulations pertaining thereto.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

All departments and agencies of the City shall notify the Surplus Sales Officer whenever it is determined that such department or agencies have surplus supplies or equipment which should be sold. Said notification shall be a prerequisite to the sale of any surplus supplies and equipment.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

A. Sales of surplus supplies and equipment which, in the opinion of the Surplus Sales Officer, have an estimated individual value of two thousand five hundred dollars ($2,500) or more, shall be made only by means of public auctions held under the authority and scrutiny of the Surplus Sales Officer.

B. All such auction sales shall be with reserve, and the Surplus Sales Officer can withdraw the surplus items at any time prior to the completion of the sale.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

All sales of surplus supplies and equipment made by public auction, as set forth in Section 3.25.050, shall be to the highest bidder pursuant to the procedure hereinafter described:

A. Notices inviting bids shall be prepared, published once in a newspaper of general circulation published and circulated within the City, and distributed to persons who have requested to be notified of such bidding opportunities. The notices shall contain a description of the items to be auctioned, shall state where and when the items may be viewed prior to the auction, and shall state the time and place of the auction.

B. All sales must be completed on the day of the auction, and payment may be made only by cash, certified check, cashier’s check or money order.

C. On refusal or failure of the successful bidder to complete the sale as prescribed above, the sale may be made to the next highest bidder.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

Surplus supplies and equipment may be sold on the open market by the Surplus Sales Officer without regard to formal bidding procedures set forth in Section 3.25.060 when, in his opinion, the individual estimated value of the supplies or equipment is less than two thousand five hundred dollars ($2,500); provided, however, that, whenever practicable, price offers shall be solicited either orally or in writing and the sale made to the highest responsible bidder.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

There is excepted from the provisions of this chapter sales of surplus supplies and equipment to any other public agency created under the laws of the state or the United States government.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)

Officials, officers, and employees (except for the surplus sales officers), when not otherwise prohibited by law, may purchase surplus supplies and equipment offered for sale under the provisions of this chapter. However, unless otherwise authorized by the City Council, said purchases may only be made at public auction or public sale. The Surplus Sales Officer shall develop written procedures to ensure that all sales to City employees are bona fide “arm’s length” transactions.

(Ord. 1893, (part), 2002; Ord. 808, (part), 1977)