CHAPTER 10
INVENTORY CONTROL
FIXED ASSETS AND SURPLUS EQUIPMENT

OVERVIEW
Disposition of surplus City property will be accomplished through the Purchasing Division. Property will be disposed of by the following methods:

• Trade-in on new equipment.
• Sale at public auction.
• Sale by sealed bids.
• Junking (using as spare parts).
• Sale as scrap.
• Donation to non-profit organization

TRADE-INS AND DISPOSAL OF EQUIPMENT

Trade-ins
Departments are encouraged to trade-in equipment that is being replaced at the time of the new equipment acquisition. Trade-ins earn credits against the purchase of the new item, transfer moving and storage costs to the vendor and result in faster, less costly disposition of unwanted equipment than the sealed bid or auction processes. Trade-ins must be processed through Purchasing.
To trade in a unit, the department should attach to the requisition for new equipment purchase, Property Activity Form listing the equipment to be traded-in.
Purchasing will ask for bids on the trade-in as a part of the bid for the new equipment. After award of the purchase order, refer to the related purchase order number, attach a copy of the purchase order to the Property Activity Form and send to Purchasing to add the new item to inventory.

SALE, SCRAP OR DISPOSAL OF CITY OF PROPERTY
The Purchasing Agent is responsible for management of surplus property. Only the City Council, City Manager and Purchasing Agent have the legal authority to sell or otherwise dispose of personal property owned by the City.
Departments with personal property that is no longer useful should use the following procedure:

Who	What
Owning Department	Notifies Purchasing of materials and equipment to be surplussed. Purchasing will make a recommendation on the best disposal method. For surplus property, sends an Property Activity Form to Purchasing describing the equipment or material, including serial number, location, date available, person to contact and their phone number, and fixed asset identification number, if applicable. Purchasing will sign and return two copies of the form to the department. Properly stores the surplus item(s) to prevent loss. Department Head or appropriate Fund Manager signature is required on the Property Activity Form. Delivers item(s) to storage location when instructed to do so or contacts the Building Maintenance Division to schedule pickup. One copy of the signed Property Activity Form should accompany and be securely attached to, the item. Notifies Purchasing before delivering item(s). If surplus equipment was obtained with a grant, states the disposition requirements on the Property Activity Form.
Purchasing	Forwards a copy of the Property Activity Form to the Finance. Transfers surplus property in Purchasing’s possession to other City departments upon request. Sell surplus equipment at auction or by sealed bid; sealed bids are opened on the due date in the presence of witnesses. Sell recyclable materials to scrap dealers. Also conducts other public sales. Complies with applicable state or federal regulations if the surplus equipment was acquired with a grant. Maintains records of sales and advises the Finance Department of fixed asset disposition as appropriate. Maintains record of surplus property on hand. Collects revenues from sales and prepares deposit. Credits revenue, less 10% handling fee, to appropriate fund.