Chapter 5.36 Property Control

(Replaced by Ordinance No. 179813, effective January 6, 2006.)  It is the policy of the City to dispose of surplus property in the most efficient and cost-effective manner possible in accordance with the guidelines in this Chapter and any related administrative rules or policies.  Temporary, full-time and part-time City employees, persons acting on the employee's behalf, and any business with which a City employee is associated, as defined by Chapter 5.33, may not purchase or receive surplus property unless offered for public sale.

(Replaced by Ordinance No. 179813; Amended by Ordinance Nos. 181483, 187165 and 189452, effective May 10, 2019.)

A.  Definition:

1.  "Surplus Property" means: tangible personal property owned by the City, including equipment and materials, which is no longer needed by the City Bureau or Office that owns it.  Examples include inventoried and non-inventoried office furniture, specialized equipment, and items that are obsolete or overstocked.

B.  City Capital Asset Disposal Documentation: The bureau initiating the transfer, donation, sale, or disposal of surplus property that has been inventoried as a capital asset, shall comply with City Accounting Administrative Rules regarding disposal of capital assets, which establish minimum standards for the disposal of capital assets and subsequent reporting in the financial records.

C.  City Assets Procured with the Proceeds of Tax-Exempt Bonds: The bureau initiating the transfer, donation, sale, or disposal of surplus property that was procured with the proceeds of tax-exempt bonds should contact the City's debt management office prior to disposal of the property to determine what, if any, limitations exist on the disposal of such property and the use of any revenue derived from such disposal.

D.  Usable Surplus Property: Whenever a Commissioner-In-Charge, or designee, determines that surplus property exists, the property may be disposed of in one of the following ways:

1.  Inter-Bureau Transfer or Sale - Surplus property may be transferred or sold to another City bureau upon written request from the director of the bureau that has a use for it.

2.  Negotiated Direct Sale - Surplus property with an individual or aggregate current market value under $5,000 may be sold as follows:

a.  The bureau obtains three written or verbal price quotations prior to final sale;

b.  The bureau negotiating the sale keeps written records of the price quotations, the amounts, and if necessary, the reason why three quotations could not be obtained;

c.  The bureau sells the surplus property to the highest bidder meeting all conditions of the sale; and

d.  The bureau applies the proceeds of the sale to its property disposition expenses in the following order: storage, transportation, publication fees and other costs of safekeeping and sale, and then to the City fund owning the property at the time of sale unless otherwise directed by the City Council.

3.  Public Sale - The City Council may authorize the sale of surplus property through an external auction service.  If the City does not have a contract with an external auction service, the bureau may conduct a public auction subject to the following conditions:

a.  The bureau shall give notice of such public auction at least once within ten days prior to the date of the auction in a newspaper of general circulation published in the City; such notice shall give the time and place of the auction;

b.  The bureau shall sell the surplus property to the highest bidder meeting all conditions of the sale; and

c.  The bureau applies the proceeds of the sale to its property disposition expenses in the following order: storage, transportation, publication fees and other costs of safekeeping and sale, and then to the City fund owning the property at the time of sale unless otherwise directed by the City Council.

4.  Public Sale through State - Surplus property may be sold pursuant to an established intergovernmental agreement with the State of Oregon Surplus Property Program.  When surplus property is sent to the State Surplus Program for sale on behalf of the City, a minimum sale price shall first be established when appropriate.  Any revenue received from the sale of surplus property through the State Surplus Program shall be credited to the bureau that owned the surplus property.

5.  Donation - Surplus property may be donated to the State of Oregon Surplus Property Program, other public agencies, or to charitable organizations certified under the Internal Revenue Code Section 501(c)(3) as follows:

a.  Donations with an individual or aggregate current market value of $5,000 or less must be approved by the Commissioner-In-Charge, or designee, of the bureau that owns the property.

b.  Donations with an individual or aggregate current market value of more than $5,000 must be approved by the City Council, by ordinance.

c.  The City shall provide the recipient of donated property with appropriate documentation transferring ownership of the property to the recipient.  The recipient shall agree to hold harmless, defend and indemnify the City of Portland, its officers, agents and employees from any claims, demands, actions and suits (including attorney fees) arising from its use or receipt of the surplus property.

d.  The Director of the Bureau or Office that owned the surplus property shall complete and retain a donation form for each donation made during the fiscal year and submit all forms to the City Office of Management & Finance at the end of the fiscal year.  The donation form shall contain:

(1)  A description of the surplus property donated; and,

(2)  The name of the recipient of the surplus property; and,

(3)  The originating bureau; and,

(4)  The estimated market value of the surplus property at the time of donation.

E.  Unusable Surplus Property: A Commissioner-In-Charge, or designee, may dispose of surplus property if it is determined that the surplus property is unusable, inoperable or not reasonably repairable, hazardous, or is of insufficient value to warrant a transfer, sale, or donation as prescribed in this Section.  In addition to disposing of unusable property in accordance with existing federal, state, or local disposal regulations, every effort shall be made to recycle or otherwise dispose of property in an environmentally sound manner.

F.  Exempt Property. The following surplus property, whether usable or unusable, shall not be transferred, donated, sold, or otherwise disposed of without Council approval or as otherwise provided by City code, policy, or procedure.

1.  Vehicles or Vehicle Equipment.

2.  Corporately-Owned Communications Equipment.

3.  Contraband.

4.  Firearms.

5.  Intangibles.

6.  Hazardous items.

7.  Items of historical value.

8.  Any other item deemed appropriate for exemption from this Section by the Commissioner-In-Charge of the bureau that controls the property.

G.  Vehicles and Vehicle Equipment: The Manager of OMF Business Operations Division is authorized to dispose of vehicles and related equipment when the vehicle is no longer needed by the City.  The manner of disposal shall be the most efficient and cost-effective as determined by the Manager.  This includes, but is not limited to, competitive written bids, public auction, negotiated sales, or exchange.  Any and all revenue, less costs of sale, received from the sale of City-owned vehicles or vehicular equipment shall be credited to the replacement account for the originating bureau.

H.  Corporately-Owned Communications Equipment: The Chief Technology Officer is authorized to dispose of corporately-owned communications equipment maintained by the Bureau of Technology Services when such equipment is no longer needed by the City.  The manner of disposal shall be the most efficient and cost-effective as determined by the Director.  This includes, but is not limited to, competitive written bids, public auction, negotiated sales, or exchange.  Any and all revenue, less costs of sale, received from the sale of corporately-owned communications equipment shall be credited to the replacement account for the originating bureau.

I.  Artificial Turf: The Chief Administrative Officer (CAO) is authorized to donate or arrange for recycling of artificial turf from City-owned spectator facilities when such turf no longer meets venue performance standards. The CAO shall comply with the provisions of this Section for all other means of disposing of the artificial turf.

(Added by Ordinance No. 153293; amended by Ordinance No. 167825, effective June 22, 1994.)

A.  Unclaimed Property: Unless directed otherwise by State law or a specific provision of this Code, all tangible personal property not owned by the City, that is under the control of a bureau and not reclaimed after notice has been sent, by the bureau in possession, to all parties who reasonably appear to have an interest in such property, of their right to claim such property within a specified period of time, shall become the property of the City, designated as surplus property, and, shall be disposed of as provided by this Chapter.

B.  Found Property: All tangible personal property not owned by the City that is found by a bureau member and turned into the bureau, shall not become the property of the City until the requirements of the state law regarding the rights and duties of finders and owners of lost property are satisfied.  After the requirements of State law are satisfied, found property shall be retained by the bureau which found it if the property is usable by the bureau.  If the property is not usable by the bureau which found it, the bureau shall dispose of the property as surplus property as provided by this Chapter.

Whenever a Commissioner determines that a building or other structure assigned to a bureau under his control must be removed, he may authorize the Purchasing Agent to sell such building or other structure for removal by the purchaser.  The Purchasing Agent shall use the method of sale which he finds most in the public interest.  The Purchasing Agent shall specify terms and conditions of sale, except that such terms shall not include credit, and he shall fix the amount of bond or cash deposit to be given by the purchaser to guarantee removal of the building or structure and clearance of debris from the premises.

(Added by Ordinance No. 162023; Amended by Ordinance Nos. 179813 and 181483, effective January 18, 2008.)

A.   The provisions of this Section apply to property which meets each of the following conditions:

1.   Property that has outstanding City liens;

2.  Property that has been foreclosed by a county for collection of delinquent taxes; and

3.  Property that has been purchased by a bidder at a county sheriff's sale.

B.  The OMF Business Operations Division may purchase and sell property described in this Section without public notice or sale provided:

1.  The Council adopts an ordinance authorizing the OMF Business Operations Division to purchase property.  The ordinance shall include a legal property description; the total amount of outstanding taxes and costs; the total amount of outstanding city liens, accrued interest, penalties and costs; and the source of funds to be used to purchase the property;

2.  Property will be sold to the successful bidder at a county sheriff's sale; and

3.   The Council adopts an ordinance authorizing the property sale and setting forth sale terms.  The ordinance shall include the name and address of the successful bidder at the county sheriff's sale and the terms of the City sale.  The Council may adopt sale terms and provisions as a part of the ordinance authorizing the purchase of property.

C.  Sale contracts and other legal documents related to the sale shall be reviewed and approved by the City Attorney prior to the sale.  Upon approval as to form by the City Attorney, the Mayor and City Auditor shall be authorized to sign a deed transferring title to the property.

D.  Proceeds from the sale shall be deposited in the City fund which incurred the expense of purchasing the property from the county unless otherwise directed by the Council in the ordinance authorizing the purchase and sale of the property.

E.  The OMF Business Operations Division is authorized to adopt administrative rules and procedures necessary to carry out the provisions of this Section.

(Amended by Ordinance No. 180917, effective May 26, 2007.)  Each Commissioner and each officer or employee of the City is and shall be hereby prohibited from loaning any personal property owned by the City to any other person either gratuitously or for a consideration, without the consent of the Council expressed by ordinance.  However, in the event of extraordinary circumstances involving hazard to the general public occasioned by fire, flood, earthquake, or other public disaster, the Commissioner of any department may permit equipment in his department to be used without the consent of the Council during such extraordinary circumstances upon the written order of the Commissioner; provided that the Chief of Portland Fire & Rescue may lend or rent to the owner or operator of property damaged by fire, flood, earthquake or other public disaster such equipment of Portland Fire & Rescue as may be temporarily needed to prevent further damage to such property, and such owner or operator so borrowing or renting such equipment, shall agree with the City:

A.  To hold the City, its officers, agents and employees harmless for any loss or damage caused to the person or property of third persons while such equipment is in the possession of such owner or operator;

B.  To waive any claim for damage to the person or property of such owner or operator arising in whole or in part from the use of such equipment; and

C.  To return such equipment to Portland Fire & Rescue in as good condition as when received, reasonable wear and tear excepted.  Such agreement shall be in writing on forms approved by the City Attorney and shall be filed with the Auditor of the City.  Any rentals collected by Portland Fire & Rescue under such agreements shall be transmitted by Portland Fire & Rescue to the City Treasurer within 24 hours after receipt by the Bureau, the rentals to be credited to the General Fund.

(Added by Ordinance No. 151849; effective June 25, 1981.)  Any City employee charged with the care or having custody of any City property which is lost or stolen shall immediately, upon discovery that such property has been lost or stolen, report such loss or theft in writing to his bureau or division head.  The bureau or division head shall upon receipt of such report, immediately notify the Accounting Division in writing of such loss or theft.  The Accounting Division shall make such investigation and report and recommendation as may be deemed appropriate.

All vehicles, equipment, and other things heretofore purchased or which may be purchased in the future from the Parking Meter Fund for the use of any bureau having service to perform in connection therewith, are and shall be assigned to the bureau where used.  They shall be inventoried in connection with and as a part of the vehicles, articles, and equipment of such bureau.

The Commissioner In Charge of any bureau or department having an automobile available shall have the authority to make use of the same in transporting firing squads for veteran’s funerals.

The Bureau of Shops shall have the use of the following described property owned by the Bureau of Water:

Lots 1, 2, 3, 4, 10, 11, and the west 40.92 feet of Lot 14; also that portion of Lot 5 lying west of a line drawn from the southeast corner to the northwest corner of said Lot 5; also a portion of Woodward Avenue now vacated, more particularly described as follows:

Beginning at a point in the north line of Lot 14, Water Bureau Addition, said point being north 73 degrees 35’45” west a distance of 26.19 feet from the southeast corner of said Lot 5; thence north 73 degrees 35’45” west 29.91 feet; thence south 89 degrees 44’30” west 92.29 feet to the northwest corner of Lot 10; thence north 0 degrees 15’30” west 50 feet to the southwest corner of Lot 4; thence north 89 degrees 44’30” east 80 feet to the southeast corner of Lot 4; thence south 73 degrees 35’45” east 40 feet to the southeast corner of Lot 5; thence to the point of beginning, all in Water Bureau Addition, in the City of Portland, Multnomah County, State of Oregon, according to the duly recorded plat thereof on file in the office of the clerk of said county and state.

The General Fund shall pay to the Bureau of Water the sum of $1 per year for the use of such property and the Bureau of Shops shall have the right to construct a building on such real property and maintain the same.

(Repealed by Ordinance No. 182389, effective January 2, 2009.)

The Director of the City Zoo be, and he hereby is, invested with the authority to accept for and on behalf of the City such gifts and donations of zoological specimens hereafter tendered as in his judgment will be beneficial to the Zoo and of interest to the public; all such gifts and donations and the acceptance thereof to be in writing, signed by the giver or donor and by the Director of the Zoo, substantially as shown in Exhibit “A” hereto attached and by reference made a part hereof.  The past actions of the Director as respects the authority herein given, are hereby ratified and adopted.

IN CONSIDERATION OF THE CITY’S ACCEPTANCE OF THE SPECIMEN HEREIN DESCRIBED, I HEREBY GIVE AND DONATE TO THE CITY OF PORTLAND, FOR THE PURPOSES OF THE MUNICIPAL ZOO, THE FOLLOWING ANIMAL:
Species. . . . . . . . . . .   Sex. . . . .Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Physical Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
How Long in Possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where Obtained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special Remarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AND I HEREBY RELINQUISH ALL CLAIM TO SAID SPECIMEN AND/OR ITS PROGENY:
Signed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date . . . . . . . . . . . . . . . . . . .
Accepted for the Zoo by:
Signed . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Object Number . . . . . . . . . . . . . . . . . . . . .

A.  Whenever any real or personal property or the use thereof shall be offered to the City by way of donation, gift, grant, lease, loan or any other manner made available to the City by any person, firm, or corporation for the purpose of bestowing a gift or benefit upon the City, the Mayor hereby is authorized to accept any and all such real or personal property or the use thereof.  The Mayor also hereby is authorized to execute any necessary agreement or document and to agree to any reasonable terms and conditions for the gift, grant, lease, loan or other use of such real or personal property.  Provided, however, that any such grant, lease or loan by which the City shall be obligated in an amount exceeding $250 shall first be approved by the Council by special ordinance.

B.  It shall be the duty of all bureau chiefs to promptly report to the Commissioner In Charge, the receipt of any gift, contribution, donation or other use of personal property from any person, firm or corporation for and on behalf of the City so that the Commissioner may cause such property to be promptly included in the City inventory.

The Commissioner In Charge of any property or premises of the City hereby is authorized to permit the use of such premises or facilities as polling places for any election held by the State, county or any municipal corporation.

The Commissioner In Charge of any particular parcel of real property owned by the City is hereby authorized to grant permission in writing to any governmental body to install on said real property on a temporary basis an air quality measuring station; provided, however, that no such written permission shall be granted unless and until the requesting governmental body has stated in writing that the temporary installation will be accomplished without injury or damage to the City property and that said governmental body will reimburse City for all costs or expenses to City incident to the installation.

(Repealed by Ordinance No. 188280, effective April 14, 2017.)