Chapter 12 — SURPLUS PROPERTY

Section

1-12-1 General

1-12-2 Procedures

1-12-3 Delegation of authority

1-12-4 Inventory records of surplus property

1-12-5 Property transfer

1-12-6 Unclaimed property

1-12-7 Auction procedures

1-12-8 Surplus city vehicles

1-12-9 Surplus land

(A) The City Manager is responsible for the general control of all surplus city property. Control of such property includes storage of surplus property, inventory tagging of surplus property, and disposal of city surplus and unclaimed property.

(B) The City Manager shall have the authority to transfer equipment and supplies between departments and, with the approval of the City Council, sell obsolete, unused or surplus property of the city.

(Ord. 316, passed 2-17-1987)

(A) The department head, when designated by the City Manager, is responsible for the sale, donation, recycling, or other disposition of surplus personal property used by that department. The City Manager and/or the department head may declare as surplus any item of personal property seized by, in the lawful possession of, or owned by the City free of liens and encumbrances, whenever he or she finds it is not needed by any department of the City.

(B) The department head, when designated by the City Manager, may sell any property declared surplus pursuant to subsection (a), at public or private sale, with advance notice of sale given by either formal (published notice) or informal (social media or similar) means, for the highest price the department head can obtain.

(C) The department head, when designated by the City Manager, may also transfer any surplus personal property to another governmental agency or to a quasi-public agency by negotiated sale, exchange, loan, or gift; provided that gifts hereunder to any agency shall not exceed an aggregate value of $5,000.00 annually. "Quasi-public agency," as used in this subsection, means a tax-exempt nonprofit corporation which is currently engaged in a public project financed in whole or in part by public funds pursuant to contract or grant agreement with a governmental agency, whose assets, upon dissolution, will not be distributable to or for any private person or purpose.

(D) The proceeds of sales or surplus personal property pursuant to this section shall be deposited in the general fund of the City, except where established accounting procedures require the deposit of proceeds in some special fund of the City. The department head shall compile a detailed list of all personal property sold, donated, or disposed of from that department during each fiscal year and present the listing, along with a breakdown of revenues received from the sale of surplus personal property, to the City Council at least once during each fiscal year.

(E) The department head, when designated by the City Manager, may direct the destruction of any property declared surplus pursuant to subsection (a) whenever he or she finds that the item has no value, is not usable by any other governmental agency or quasi-public agency, or is not appropriate for public or private sale.

(Ord. 316, passed 2-17-1987; Ord. 666, passed 4-21-2026)

The City Manager may authorize any department to dispose of surplus city property, provided that such disposal be done in accordance with procedures established by this chapter.

(Ord. 316, passed 2-17-1987)

(A) The City Manager shall retain a surplus property file which accounts for all transactions completed by the city through property transfers, auctions, sales or leasing.

(B) Revenues received from disposal of surplus or unclaimed property through the year will be reported to the Director of Finance after each sale.

(C) At the end of each fiscal year, a summary report will be submitted to the City Manager from the Director of Finance identifying quantities of materials sold or leased and revenues received. This report will be included in with the Department of Finance’s annual report of yearly activities.

(D) Revenues received from major sales of surplus or unclaimed property through the year shall be reported to the City Manager after each sale.

(Ord. 316, passed 2-17-1987)

(A) 1. Departments requesting materials and items to be transferred to surplus must submit a written request to the City Manager.

2. Upon approval, the department head shall notify the Director of Finance, and arrange for transportation of the surplus

property to the corporation yard. Surplus items will be tagged as they are received, listed on a surplus property log, and stored until sold or requested by another department.

(B) Departments wishing to secure an item from surplus property may do so by filing a request with the City Manager, and if approved, must notify the Director of Finance.

(Ord. 316, passed 2-17-1987)

(A) Upon expiration of a six-month waiting period, any unclaimed property (such as what might be confiscated as evidence by the Police Department) that cannot be delivered to the owner may be appropriated for use by the city upon order of the City Manager Any property not appropriated for use by the city may be sold at public auction to the highest bidder.

(B) Unclaimed items appropriated for city use are required to obtain a property tag if the items are valued over $100 or if they are accountable items such as cameras, tape recorders, calculators and the like. The Department of Finance must be notified to make changes in property records and tag any items as necessary.

(Ord. 316, passed 2-17-1987)

At the discretion of the City Manager, a public auction may be held to dispose of unclaimed or surplus city property. The following procedures are established for its organization.

(A) General provisions.

1. The City Manager will select a tentative auction date 60 days in advance and assign an auction coordinator; and

2. The auction coordinator will prepare a calendar of events leading up to the auction day. The events are to be organized

around these key areas:

(a) Auction accounting;

(b) Publicity;

(c) Property list and transfers; and

(d) Site preparation.

3. A list of unclaimed property from the Police Department is to be submitted to the Director of Finance by the Chief of

Police.

4. A request for surplus property may be sent to all departments or only surplus items on hand may be considered,

whichever is in the best interest of the city as determined by the City Manager. All items listed as surplus will be reviewed by the City Manager and Director of Finance prior to preparation of a final list.

5. A final surplus and unclaimed property list may be prepared and sent to all departments. At this time, any property

declared surplus by one department and requested by another may be transferred if approved by the City Manager. Any unclaimed property listed by the Police Department may be transferred to departments if approved by the City Manager. In all cases, any item valued over $100 shall be assigned a city property number.

6. The auction coordinator will submit a surplus and unclaimed property list to the Council 30 days before the auction.

Council must authorize a public auction prior to any publicity by the city.

7. Notice of the sale must be given by the City Clerk at least five days before the date of the event by publication at least

once in a newspaper of general circulation published in the county.

8. Departments should be contacted at least two weeks in advance for supplying personnel to assist in auction

preparation. When possible, personnel involved in previous auctions should be requested.

9. No city employees working auction day will be allowed to bid on merchandise.

10. Staff assigned to auction accounting is to submit a financial statement to the auction coordinator. A report on the

auction including the financial report shall be submitted to the Director of Finance.

11. Unsold city property and unsold police property will be returned to the Finance Department’s holding area of surplus

property.

(B) Auction day regulations.

1. Refunds. All materials are sold “as is, where is”. All sales are final.

2. Found property. Any individual claiming found property the day of the auction and who has reported the theft to the city’s

Police Department prior to the auction will be instructed to contact the Police Department and the item shall be removed from the auction.

3. Tag switching. Any individual claiming tag switching will be directed toward the claim area where the tag number will be

compared to the surplus list.

4. Payments. All transactions will be handled on a cash or check basis. All items are to be paid for on the day of the auction. Requests for delayed payments will be refused.

   5. Claims after sale. Should a claim for an item be made after a sale, the item is not to be released to any party. The item is to be impounded and returned to the Police Department. In the event the buying party has paid, the payment is to be refunded.

This regulation is to apply only if the party claiming stolen property has reported the theft prior to the auction.

(Ord. 316, passed 2-17-1987)

(A) Surplus vehicles are generally generated as a result of the following actions.

1. Vehicles are withheld from trade-in in the best interest of the city.

2. It has been determined that a vehicle is no longer serviceable nor repairable and is placed into surplus.

(B) The procedures for the handling and disposal of surplus vehicles are the same as those previously outlined in this chapter.

(C) Departments wishing to secure a vehicle for additional use must submit a written request to the City Manager.

(Ord. 316, passed 2-17-1987)

(A) SURPLUS LAND is defined as real property owned by the city which is determined to be no longer necessary for the city’s use.

(B) The city may dispose of such surplus land in accordance with the conditions set by the Cal. Gov’t Code Title 5, Division 2, Part 1, Chapter 5, Article 8, § 54222.

(C) Prior to disposing of that property, the city shall send a written offer to sell or lease the property as follows:

1. For the purpose of developing low and moderate income housing, to any local agencies within whose jurisdiction the

surplus land is located including, but not limited to, housing authorities or redevelopment agencies;

2. For park and recreational or open space purposes:

(a) To any Park and Recreation Department of any city within which the land is situated;

(b) To any Park and Recreation Department of the county within which the land is situated;

(c) To any regional park authority having jurisdiction; and

(d) To the state resources agency.

3. For enterprise zone purposes, to the nonprofit Neighborhood Enterprise Association Corporation in the designated

enterprise zone;

4. For designated program area purposes, to the program area agent; and

5. For school purposes, to any public school district within whose jurisdiction the land is situated.

(D) After the city has received notice from an entity desiring to purchase or lease the land, the city shall enter into good faith negotiations to determine a mutually satisfactory sales price or lease terms.

(E) In the event that the city receives more than one offer, priority shall be given to the entity which agrees to use the site for housing for persons of low or moderate income, except that first priority shall be given to an entity which agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park or recreational use in the local general plan.

(Ord. 316, passed 2-17-1987)