Chapter 4.04 — DISPOSITION OF SALVAGE AND SCRAP PROPERTY

A.

Salvage Property. "Salvage Property" means the personal property of the city which has functional usefulness, but is either no longer needed in the service of the city or fit for the purpose intended. This definition includes all unclaimed or seized property of the police department except property acquired pursuant to the asset seizure program under federal law, narcotics and weapons.

B.

Scrap. "Scrap" means equipment, material or property that is no longer capable of performing its intended function without extensive repair, and/or material that has no usefulness except for reclamation.

C.

Disposition Procedures. "Disposition procedures" means the sequence of events involved with the disposal of items beginning with the original recommendation to dispose of an item through the physical removal of the item from city property and culminating with the transfer of title, through negotiated sale, sealed bids or public auction.

D.

Fair Market Value. "Fair market value" means the amount that a willing buyer will pay for salvage property or scrap through either negotiated sale, sealed bids or public auction as described herein.

(Ord. 6477 § 2 (part), 1992)

Subject only to the exceptions provided in this chapter, the following general rules shall govern the disposition of all salvage property:

A.

Salvage property may only be sold or transferred for not less than its reasonable fair market value pursuant to the procedures set forth herein.

B.

The head of the purchasing division of the finance department is authorized for and on behalf of the city to transfer salvage property to another department of the city and to sell salvage property according to the provisions outlined below.

C.

Salvage property of a reasonable value in excess of $25,000.00 shall not be sold without the authorization of the city council.

D.

No salvage property may be sold to or given to a city employee or a private nonprofit organization except through public auction or sealed bids open to the general public.

E.

No city employee shall be permitted to bid or knowingly come into ownership of any salvage property if the employee participated in the disposition process.

(Ord. 6746 § 2, 1998: Ord. 6686 § 1, 1996; Ord. 6477 § 2 (part), 1992)

Salvage property of all departments of the city shall be transferred to the purchasing division of the finance department, upon written authorization of the department head, for sale or transfer. Property removed to the purchasing division shall thereafter be deemed within the control and possession of the finance department.

(Ord. 6477 § 2 (part), 1992)

A.

The applicable department head will notify the purchasing division in writing of the existence of salvage property and request disposition instructions. This notification shall list each item, acquisition date or estimated age, acquisition price (if known), condition, and any known defect not readily apparent through visual inspection.

B.

The purchasing division shall review the request and determine if any other city department has a use for the salvage property. If so, the purchasing division shall transfer the salvage property to the department they believe can best use it.

C.

If the purchasing division determines that the salvage property is not functionally or economically suitable for further city use, it shall dispose of it by using a public auction, sealed bids or through negotiated sale for items valued at less than $10,000.

D.

The purchasing division shall actively publicize auctions in a newspaper of general circulation at least 5 days prior to the day of the auction. The notice shall include the date, time and place of the auction as well as a general description of the items to be sold.

E.

Salvage property to be sold through sealed bids shall be advertised through appropriate means consistent with its value.

F.

Scrap shall be sold through sealed bids and such sale shall be advertised through appropriate means consistent with its value.

G.

Should the purchasing division be unable to obtain any offer after solicitation of bids, the salvage property or scrap shall be disposed of by negotiated sale or whatever means is in the best interest of the city, consistent with the regulations in this chapter.

H.

All proceeds of sale shall be credited to general fund except for items originally purchased with enterprise funds. Such items shall be credited to the applicable enterprise fund.

I.

The purchasing division shall maintain documentation of the disposal of all salvage property and scrap. Documentation shall include date and method of disposition, sale price, and name and address of buyer. It shall also account for all expenses related to the disposition of all salvage property.

J.

Salvage property valued at greater than $3,000.00 shall be sold or disposed of only on written authorization of the officer or officers of the city herein authorized to sell or dispose of same on a form prepared by the city controller and approved by the city attorney and city manager.

K.

The head of the purchasing division, upon the written consent of the director of finance, is authorized to negotiate the sale of salvage property valued at less than $10,000. Under such circumstances, the head of the purchasing division shall seek informal bids wherever practical. The head of the purchasing division shall maintain records of all such sales, including items sold, date sold, price and name and address of purchaser and report same to city council for the prior fiscal year within 90 days of the end of the fiscal year.

L.

The city manager may approve, in writing, the sale or transfer of a public safety service animal to the animal's handler after recommendation and finding by the chief of police that: (1) the animal was acquired by the city for a bona fide public safety purpose; (2) the animal either is no longer needed for that purpose or can no longer be used for that purpose, and (3) the public interest is served by the sale or transfer.

(Ord. 7004 § 1, 2005; Ord. 6686 § 2, 1996; Ord. 6477 § 2 (part), 1992)

When any salvage property is of no value and cannot be sold, upon written authorization of the finance director, the salvage property shall be disposed of in the most practicable manner by the head of the purchasing division.

(Ord. 6477 § 2 (part), 1992)

The city manager is authorized for and on behalf of the city to sell the personal property of the city not otherwise herein specifically mentioned for not less than the fair market value thereof where the total amount of the sale does not exceed $500.00 and where the sale of the property is expedient or necessary for the promotion and protection of the health, comfort, safety, life and welfare of the inhabitants of the city or for the preservation of the peace and good order.

(Ord. 6477 § 2 (part), 1992)

The finance director shall promulgate rules and regulations for the implementation of this chapter.

(Ord. 6477 § 2 (part), 1992)

The director of finance, with the written approval of the city manager, shall give first priority for transfer of salvage property to the Pasadena Unified School District, which may be without city council authorization and of any dollar value. Such transfer may be accomplished by written acceptance by the superintendent of schools of the Pasadena Unified School District certifying that the salvage property specifically described in the written acceptance will further the programs of the District and will not be sold.

(Ord. 7062 § 1, 2006: Ord. 6746 § 3, 1998)

Notwithstanding anything to the contrary herein, property may be sold or transferred without complying with the provisions of this chapter; provided, that the city council authorizes the method of disposition by majority vote taken at a duly noticed regular or special meeting, acting upon a recommendation from the finance director which sets forth the reasons for requesting an exemption from this chapter. Such authorization must contain a finding that a valid public purpose is served and the record shall contain the reasons which support such a finding.

(Ord. 6477 § 2 (part), 1992)