Disposal of Property

AP6550 Disposal of Property

Reference: Education Code Section 70920(b)(6), 81450 et seq. MSJC Board Policy BP6550

Disposal of Property As appointed by the Vice President of Business Services, Surplus Property Management is the responsibility of the Purchasing Agent. Surplus property is defined as any district owned property that is no longer usable or needed by any district program.

Departments will notify the Purchasing Office of all excess and surplus materials on the Surplus Disposal form. The form will be forwarded to the warehouse staff which will make arrangements for the pick-up of surplus materials from the requesting department. Departments cannot “hold” surplus equipment in the warehouse for an undetermined amount of time. All surplus equipment turned in by a department is eligible to other departments and/or surplus property disposal methods.

District property, surplus or otherwise, may NOT be used for personal use. Departments with surplus district may NOT dispose of surplus property nor make arrangements for trade-in or donation without the outside public or district vendors. All surplus property will be processed through the Purchasing Office.

The Purchasing Agent shall determine the fair market value of excess and surplus property. Methods used for determining value may include quotations, estimates; use of reference guides and other publications, as well as market indexes.

The Purchasing Agent may facilitate the transfer of excess or surplus materials to or between other colleges and/or eligible state educational institutions or state programs. These excess or surplus materials must be offered to other MSJC programs prior to offering them to eligible non-profit educational institutions or state programs. Eligible non-profit educational institutions or state programs receiving surplus materials must sign an agreement stating that they will not sell, dispose, or transfer this equipment for the period of one year.

Surplus property shall be offered through public auction, competitive sealed bids, established markets, or posted prices. If unusual circumstances render the above methods impractical, the Purchasing Agents may employ other disposition methods, including appraisal or barter, provided the Purchasing Agent makes a written determination that such procedure is advantageous to the district.

Methods of disposition of surplus materials:

1. Public Auctions may be used to dispose of surplus materials. These auctions shall be advertised at least two(2) times prior to the auction date, the last notice to be no less than six days prior to the auction date. All the terms and conditions of any sale shall be available to the public at least 24 hours prior to the auction date.

2. Competitive sealed bidding may be used to dispose of surplus materials. Notice for Sale bids shall be publicly available from the Purchasing Office at least ten days before the date set for opening bids. Notice of the Sale bids shall be mailed to prospective bidders, including those bidders on lists maintained by the Purchasing Office. The Notice for Sale bids shall list the materials offered for sale, their location, availability for inspection, the terms and conditions of sale, and instructions to bidders including the place, date, and time set for bid opening. Bids shall be opened publicly.

The award shall be made in accordance with the provisions of the Notice for Sale bids to the highest responsive and responsible bidder, provided that the price offered by such bidder is acceptable to the Purchasing Agent. If the offer is determined to not be advantageous to the district, the offer may be rejected in whole or in part and the bid process will be re-solicited.

3. Trade-in options may be used to dispose of surplus materials. Before surplus materials are disposed of by trade-in to a vendor for credit on an acquisition, the Purchasing Agent or designee shall approve such disposal. The Purchasing Agent shall base this determination on whether the trade-in value is expected to exceed the value realized through the sale or other disposition of such materials.

4. Some surplus materials may be deemed as “scrap” by the Purchasing Agent. These materials are past a useful life; broken beyond repair; cannot be donated; or were unsold at a public auction or bid. The Purchasing Agent shall negotiate a price through a scrap dealer for these materials or dispose of surplus materials in an appropriate manner.