5.36.010 Disposition of Surplus Property.

City Code Section

(Replaced by Ordinance 179813; Amended by Ordinances 181483, 187165 and 189452, effective May 10, 2019.)

  1. A.  Definition:
    1. 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.
  2. 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.
  3. 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.
  4. 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. 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. 2.  Negotiated Direct Sale - Surplus property with an individual or aggregate current market value under $5,000 may be sold as follows:
      1. a.  The bureau obtains three written or verbal price quotations prior to final sale;
      2. 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;
      3. c.  The bureau sells the surplus property to the highest bidder meeting all conditions of the sale; and
      4. 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. 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:
      1. 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;
      2. b.  The bureau shall sell the surplus property to the highest bidder meeting all conditions of the sale; and
      3. 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. 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. 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:
      1. 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.
      2. b.  Donations with an individual or aggregate current market value of more than $5,000 must be approved by the City Council, by ordinance.
      3. 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.
      4. 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. (1)  A description of the surplus property donated; and,
        2. (2)  The name of the recipient of the surplus property; and,
        3. (3)  The originating bureau; and,
        4. (4)  The estimated market value of the surplus property at the time of donation.
  5. 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.
  6. 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. 1.  Vehicles or Vehicle Equipment.
    2. 2.  Corporately-Owned Communications Equipment.
    3. 3.  Contraband.
    4. 4.  Firearms.
    5. 5.  Intangibles.
    6. 6.  Hazardous items.
    7. 7.  Items of historical value.
    8. 8.  Any other item deemed appropriate for exemption from this Section by the Commissioner-In-Charge of the bureau that controls the property.
  7. 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.
  8. 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.
  9. 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.

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