HomeMy WebLinkAbout12 Surplus Inventory Agenda Item # 12
Public Utility District
ACTION
To: Board of Directors
From: Ed Taylor
Date: August 06, 2008
Subject: Revisions to District Code Chapter 8.20.010 - Disposal of Surplus
Inventory, Materials, Office Equipment and Vehicles
1. WHY THIS MATTER IS BEFORE THE BOARD
The District Code should periodically be reviewed and updated to conform to District
Board policies and new applicable laws and regulations.
2. HISTORY
Chapter 8.20.010 has not been revised in many years. The current District Code
Chapter 8.20.010 requires all items declared surplus to be disposed of by advertising
locally and receiving bids. This has created a condition where the District has not
maximized its return on investment for some of these surplused items.
3. NEW INFORMATION
Chapter 8.20.010 has been revised taking into consideration the current process and
some new options available to handle the disposal of surplus items. The current bid
process is yielding minimal results. With the ongoing replacement of Electric
Department bucket trucks and Water Department heavy equipment, additional surplus
equipment disposal options are needed. There are two new options that staff has
researched and are recommending that these options be included in the Code:
• Trade in to be included in the purchase of new equipment that replaces a
surplus item; and
• Utilization of a contract auction company to dispose of the surplus items.
4. FISCAL IMPACT
By creating additional options for the disposal of surplus inventory, the District will be
able to broaden it's base of bidders and generate more funds than in the past.
5. RE MMENDATION
prove a pro ose code revisions.
Ed Taylor Michael D. Holley
Water Utility Manager General Manager
i
CHAPTER 8.20
DISPOSAL OF DISTRICT PROPERTY
Sections:
8.20.010 Disposal of Surplus Inventory, Materials,
Office Equipment and Vehicles
8.20.020 Disposal of Real Property
8.20.010 Disposal of Surplus Inventory,Materials.Officefcrluipment and Vehicles
8.20.010.1 Items of inventory, materials, office equipment and vehicles considered by
staff to be no longer necessary shall be listed on-an appropriate arm and presented to
the Manager.
8.20.010.2 for Items with an estimated value in excess of$500, the Gen ral Manager Deleted: When suitable
shall direct that a Board Action declaring the >t rns surp s e placed-- an agenda for Deleted:resolution
Board review and approval. For items with an estimaited value of less than the$500,the Deleted;and
Board authorizes the General Manager to dispose of the surplus Inventory at his
disc-
er
J8.20.010. The Manager shall for the disposal of surplus item have the option of a---- Deleted:i advertise then ale of the su.3 The rplus
trade-in allowance for rye replacement eaul6tent use+of a contract auction company, items in the appropriate newspapers
or the public bid process., - _- - _- - - _ --- - - - - -- - - - - --- - -- and journals.¶
8 20 010 4 If he ublic bid pro�eas is to be,used then the Manager shall advertise the Deleted:a
sale of the surplus ites in the a0p riate newspapers and journals. Deleted:bid opening date shall be
as indicated on the pertinent
resolution.
8.20.010:5 1n the event that -no bids at0 received on some items,_or the General Deleted;the Manager determines
Manag r�'determines that the bids received on certain items are not sufficient,the Board ���„ that
may authorize the General Manager to dispose of such items at his discretion. Deleted: the bid
8.20.010rt6 No Board member may bid on or purchase surplus property from the District. Deleted:s
No person Who makes, participates in the making of, or influences the decision to Deleted: process is used and that
dispose of surplus property may bid on such items. This includes District staff, Deleted:are not
consultants, advisory committee members and all other individuals who make, Deleted:
participate in the making of, or influence the decision regarding the disposal of surplus
property.
(Res.8212,8911)
8.20.020 Disposal of Real Property
8.20.020.1 In accordance with Government Code Section 54221, in order to dispose of
real property owned by the District, parcels would be surveyed and appraised and
existing utilities identified.
8.20.020.2 The District would then offer the parcels for sale or lease in accordance with
i
Government Code Section 54222. The notice would be sent to any public agency
developing low and moderate income housing,to the local recreation and park district,to
the State Resources Agency and to the local school district.
8.20.020.3 If public agencies do not respond within 60 days, the District can then offer
the land for sale to private parties.
8.20.020.4 There is no requirement in state law or in r The Diistrict strict maylcies neg negotring that land
iate h adjacent
be sold to a private party by public bid process.
land owners for sale of land.
8.20.020.5 If a public agency does want to purchase the land, the District enters into
negotiations for a period of not less than 60 days, after which the property may be sold
to any other party.
(California Government Code)