AGENDA# 4L

 

MEMORANDUM

 

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Establishment of a Policy of for Disposal of Surplus Property of Minimal Value

 

DATE:             January 10, 2000

 

In accord with revisions to General Statute 160A-266c, the attached resolution would allow the Council to establish a policy authorizing the Town’s Purchasing Agent to dispose of surplus personal property valued at less than five thousand dollars ($5000) for any one item or group of items.

 

BACKGROUND AND DISCUSSION

 

In July 1997, the General Assembly enacted a change in G. S. 160A-266c, increasing the value of property that may be disposed of under an approved Council policy from $500 to $5,000.  Also, units are no longer required to report in writing to Council disposals made under such authorization.  Instead, a record of all property sold under this statute would be kept by the Purchasing Agent.  This procedure would not apply to real property.

 

Pursuant to this revision to G. S. 160A-266c, the Council would, upon adoption of attached resolution, establish the following policy and procedures:

 

A.     The Purchasing Agent may declare surplus any item of personal property reported in writing as surplus by a department head and which both the Purchasing Agent and the department head estimate its value to be less than five thousand dollars ($5,000).

 

 

B.      The Purchasing Agent would dispose of the property so as to secure a fair value for the Town and accomplish the disposal efficiently and economically.  Accordingly:

 

1.      Public notices of such disposition are not required:

2.      The Purchasing Agent may set the value of each item and convey title to the property;

3.      Disposals may be made by public and private sales and exchanges;

4.      The Purchasing Agent will keep a record of any property sold under this statute including description of property, to whom it was sold, and amount received for item.

 

This procedure will prevent an accumulation of surplus items and subsequent storage problems, eliminate excessive formal procedures at the annual surplus sale; and enable the Town to negotiate with other nonprofit organizations who would benefit from items we no longer need.

 

RECOMMENDATION

 

That the Council adopt the attached resolution establishing a policy for disposal of property of minimal value as authorized by revisions to G. S. 160A-266c.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A RESOULTION ESTABLISHING A POLICY AND PROCEDURE FOR DISPOSAL OF PERSONAL PROPERTY VALUED AT LESS THAN FIVE THOUSAND DOLLARS ($5,000) FOR ANY ONE ITEM OR GROUP OF ITEMS (2000-01-10/R-11)

 

WHEREAS, N. C. General Statute 160A-266c was amended effective July 1, 1997, authorizing Town Councils to adopt regulations prescribing procedures for disposal of personal property valued at less than five thousand dollars ($5,000);

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill:

 

  1. The Purchasing Agent is authorized to declare surplus any items of personal property reported in writing as surplus by a department head and which value is estimated to be less than five thousand dollars ($5,000).

 

  1. The Purchasing Agent is authorized to dispose of surplus personal property valued at less than five thousand dollars ($5,000);

 

  1. The Purchasing Agent is authorized to sell items of fair market value under $5,000 and to convey title of said property on behalf of the Town;

 

  1. The statute has revised the procedure that the Purchasing Agent no longer has to report the sale to Council.  The Purchasing Agent is to keep a record of items sold, including description, to whom items are sold, and amount received for each item.

 

BE IT FURTHER RESOLVED that the purpose of this resolution is to facilitate the sale of such property and secure for the Town a fair market value.

 

This the 10th day of January, 2000.