TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Jeff Brooner, Purchasing Manager
SUBJECT: Disposal of County Surplus Property
RECOMMENDATION
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Declare certain items of County property as surplus and no longer required for public use; and approve and authorize the Purchasing Agent to dispose of these items by sale at public auction, by donation to Community Action of Napa Valley (CANV), and by discarding via recycling. (Fiscal Impact: Increased Revenue; Various County Funds; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Purchasing Division of the County Executive Office is responsible for maintaining a surplus warehouse to store personal property that County Departments no longer require for public use within their department and where the items are stored for potential use by other departments. Once the items have outlived their useful life and are no longer needed for public use, the items can be sold at auction, donated, sold by direct sale, or disposed of. Capacity of the surplus warehouse has been reached. Currently, there are number of items that could potentially be sold at auction, there items that have been identified as being useful, via donation, to CANV, and there are items that have previously been disposed of by way of recycling. If the recommendation to sell items at auction is approved, the County will be utilizing Govdeals.com for the auctions.
California Government Code Section 25363 authorizes the Board of Supervisors, upon a four-fifths (4/5) vote, to sell at public auction, and convey to the highest bidder, for cash, any property belonging to the County and not required for public use. For the most part, items that currently are recommended for auction are not capital assets, however there are three capital assets that must also be removed from the capital asset listing.
California Government Code Section 25372. authorized the Board of Supervisors, by majority vote, to donate any real or personal property the Board declares to be surplus to public agencies, public schools and any organization exempt from taxation pursuant to 24 U.S.C. Sec. 501(c)(3), that is organized to provide health or
human services. CANV meets the requirements of California Government Code Section 25372. When the Department of Corrections relocated to their new location, there were several pieces of kitchen equipment left behind as they are not needed at the new facility. Recently, it was identified that CANV was in need of this type of equipment and staff met with CANV to determine which pieces would be appropriate.
Napa County Purchasing Policy Section 9-4(d) allows for the disposal of damaged, useless, or valueless property when the costs of selling items at public auction are anticipated to exceed the anticipated revenue. Therefore, items that are approved for sale at auction, yet don’t sell at auction, will be declared valueless and disposed of via recycling instead of being put up for auction again. On occasion, items are disposed of immediately when it is determined they are damaged or valueless. When this happens, those items previously disposed of must be reported to the Board of Supervisors; recently five (5) metal cabinets and two (2) file cabinets were recycled during the effort to move the Assessor-Recorder’s office to 1125 Third Street.
Requested Actions:
1. Declare certain capital assets and other personal property as surplus and no longer required for public use;
2. Authorize the Auditor-Controller to remove the surplus capital assets from the capital asset listing;
3. Authorize the sale of surplus personal property at public auction;
4. Authorize the donation of personal property to Community Action of Napa Valley; and
5. Authorize the disposal of unsold personal property by way of recycling.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The property recommended for auction, disposal and donation have outlived their usefulness, have been removed from service, and are no longer required for public use. Auction revenue will be deposited into the General Fund as well as other appropriate County Funds from where property originated, when identifiable. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
There is no future fiscal impact past the current fiscal year. |
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Consequences if not approved: |
Accumulated surplus property would exceed existing storage capacity |
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Strategic Initiative: |
Build Healthy, Connected Communities |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California
Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.