Kings County Board of Education Board Policy BP 3270 Business and Noninstructional Operations SALE AND DISPOSAL OF EQUIPMENT AND SUPPLIES The Kings County Superintendent of Schools may sell for cash any personal property belonging to the if it is not required for school purposes, or should be disposed of for the purpose of replacement, or is unsatisfactory or not suitable for school use. The County Board of Education must provide the following review or approval before disposal. (Education Code 1279) Sale or Disposal of items valued over $25,000 The county superintendent of schools shall meet the following procedures for disposal of any item of personal property worth over twenty-five thousand dollars ($25,000) that belongs to the county office of education. 1. Obtain an independent valuation of the property. 2. Obtain the approval of the county board of education at a regularly scheduled public meeting of the disposal of the item. 3. Sale of the item using any of the following methods: a. Sale by a public auction firm. b. Sale by public auction conducted by county office employees or employees of other public agencies. c. Sale to the federal government or its agencies, to the state, to any county, city and county, city or special district, or to any other school district or any agency eligible under the federal surplus property law, (40 U.S.C. Sec. 484(j)(3)). (Education Code 17540) Sale or Disposal of items valued less than $25,000 The county superintendent of schools may not dispose of any personal property worth less than twenty-five thousand dollars ($25,000) that belongs to the county office of education unless the superintendent or designee certifies the value of the property in a quarterly report and submits that report to the county board of education for its review. The Superintendent or designee shall establish procedures to be used when selling equipment for which the federal government has a right to receive all or part of the proceeds. These procedures shall ensure a reasonable amount of competition so as to result in the highest possible revenue. Reference: EDUCATION CODE 1279 County Superintendent disposal of personal property
Page 2 17540-17542 Sale or lease of personal property by one district to another 17545-17555 Sale of personal property 42291.5 Temporary school bus designation 42303 School bus sale to another district 60500 Determination of obsolescence 60510-60511 Donation or sale 60520-60521 Disposition of sale proceeds 60530 Methods of destruction GOVERNMENT CODE 25505 District property; disposition; proceeds UNITED STATES CODE, TITLE 40 484 Surplus property CODE OF FEDERAL REGULATIONS, TITLE 34 80.32 Equipment acquired under a grant or subgrant Adopted by Board: November 11, 1987 Revised by Board: March 6, 1991 Revised by Board: August 4, 1993 Reviewed by Board: November 1, 1995 Revised by Board: July 1, 1998 Revised by Board: June 4, 2008
Page 3 Kings County Board of Education Administrative Regulation AR 3270 Business and Noninstructional Operations SALE AND DISPOSAL OF EQUIPMENT AND SUPPLIES The Superintendent may dispose of personal property belonging to the County Office of Education by using the following methods: Each department manager shall complete the Equipment Disposal Form (Exhibit A) for equipment that is found to be obsolete, broken, or unrepairable. Equipment that will be used for trade-in purposes will be processed with the same form. Once the department has completed the form, it will be sent to business for processing. The business department will be responsible for the proper disposal or the equipment. Sale or Disposal of items valued over $25,000 The county superintendent of schools shall meet the following procedures for disposal of any item of personal property worth over twenty-five thousand dollars ($25,000) that belongs to the county office of education. 1. Obtain an independent valuation of the property. 2. Obtain the approval of the county board of education at a regularly scheduled public meeting of the disposal of the item. 3. Sale of the item using any of the following methods: a. The Superintendent may sale of the property by means of a public auction conducted by contract with a private auction firm. Private auction firm may include county or regional auction firms or internet based auction systems, such as E-Bay. b. The Superintendent may authorize the sale of the property by means of a public auction conducted by district employees or employees of other public agencies. Advertising for the sale must be made in a newspaper of general circulation within the district. The advertisement shall be published once a week for two weeks before the opening of the bids. c. The Superintendent may sell any personal property to the federal government or its agencies, to the state, to any county, city and county, city or special district, or to any other school district or any agency eligible under the federal surplus property law, (40 U.S.C. Sec. 484(j)(3)) and the governing board of another school district may purchase the property, for an amount equal to the cost thereof plus the estimated cost of purchasing, storing, and handling the
Page 4 property, without advertisement for or receipt of bids or compliance with any other provisions of this code. (Education Code 17540) Sale or Disposal of items valued less than $25,000 The county superintendent of schools or designee may dispose of any personal property worth less than twenty-five thousand dollars ($25,000) that belongs to the county office of education if they certify the value of the property in a quarterly report and submit that report to the county board of education for its review. The superintendent or designee will abide by the following procedures for the sale or disposal. Sale or Disposal of items valued between $2,500 and $25,000 The Superintendent may use the following procedures to sell personal property. 1. The Superintendent may sell the property by means of a public auction conducted by contract with a private auction firm. Private auction firm may include county or regional auction firms or internet based auction systems, such as E-Bay. 2. The Superintendent may authorize the sale of the property by means of a public auction conducted by district employees or employees of other public agencies. Notice for bids shall be posted in at least three public places in the County Office for at least two weeks or published at least once a week for at least two weeks in a newspaper having a general circulation in the county. (Education Code 17545) 3. The Superintendent may sell any personal property to the federal government or its agencies, to the state, to any county, city and county, city or special district, or to any other school district or any agency eligible under the federal surplus property law, (40 U.S.C. Sec. 484(j)(3)) and the governing board of another school district may purchase the property, for an amount equal to the cost thereof plus the estimated cost of purchasing, storing, and handling the property, without advertisement for or receipt of bids or compliance with any other provisions of this code. (Education Code 17540) Sale of Disposal of items valued between $250 and $2,500 1. If the department manager requesting the disposal certifies, with supporting certification from the Assistant Superintendent, Business Services, that the property is worth no more than $2,500, then a designated district employee may sell the property with proper public notice.(education Code 17546) Notice for bids shall be posted in at least three public places in the County Office for at least two weeks or published at least once a week for at least two weeks in a newspaper having a general circulation in the county. (Education Code 17545) 2. The Superintendent may advertise for bids and either sell the property to the highest responsible bidder or reject all bids. (Exhibit C-Limited bid notice) (Education Code 17545)
Page 5 3. Property for which no qualified bid has been received may be sold, without further advertising, by the Superintendent or designee. (Education Code 17546) Sales or Disposal of Items valued less than $250 If the Superintendent or their designee finds that the value of the property is insufficient to defray the costs of arranging a sale, the property may be disposed as follows; 1. Donate to a charitable organization deemed appropriate. 2. Dispose of property by using appropriate and required disposal methods. The County Office will make an effort to recycle any parts possible before disposal. 3. Sold by informal means of posting a notice of the items and value for sale. The items will be sold to those first responding to the notice. (Exhibit C- Limited Sale Notice) (Education Code 17546) Sale to Other Governmental Agencies Without advertising for bids, the Superintendent may sell the property to agencies of federal, state or local government, to any other school district, or to any agency eligible under the federal surplus property law (40 USC 484(j)(3)). In such cases, the sale price shall equal the cost of the property plus estimated cost of purchasing, storing and handling. (Education Code 17540) Without advertising for bids, the Superintendent may sell or lease the property to agencies of federal, state or local government or to any other school district. In such cases, the price and terms of the sale or lease shall be fixed and approved by the County Superintendent of Schools. (Education Code 17542) Sales Proceeds Money received from the sale of surplus property shall be either deposited in the district reserve or general fund or credited to the fund from which the original purchase was made. (Education Code 17547) I:\BOARD ITEMS\AR3270-Disposal of Equipment and Supplies 10-07.doc
Page 6 Kings County Board of Education Administrative Regulation Exhibit 3270 Business and Noninstructional Operations Sale And Disposal Of Equipment And Supplies Exhibit A - Equipment Disposal Form Exhibit B - Limited Sale Notice Exhibit C - Limited Bid Notice Exhibit D - Board Discussion of Disposal of Fixed Assets less than $25,000 Exhibit E - Legal References
Page 7 Kings County Board of Education Administrative Regulation Exhibit 3270 A Equipment Disposal Form Business and Noninstructional Operations Sale And Disposal Of Equipment And Supplies Equipment Disposal Form Date Item Description-include description, condition, tag numbers (if applicable) and quantities (Note FRN, if purchased with E-Rate funds) Estimated Value Reason for Disposal Loss/Theft-Describe: Broken and not repairable Obsolete or not functional equipment Excess equipment Estimated Value and Recommended Method of Disposal Item value over $25,000-See BP/AR 3270 Item value between $2,500 & $25,000 Sale at public auction by private auction firm Sale by public auction by county office employees Sale to governmental entity Item value between $250 & $2,500-Limited bid process Item value is less than $250 Limited sale Donation to Discard-item has no value and should be disposed I certify that the preceding items should be disposed and approve of the recommended method of disposal. Division Manager Authorization Assistant Superintendent, Business Services Exhibit 3270 A-Disposal Form
Page 8 Kings County Board of Education Administrative Regulation Exhibit 3270 B - Limited Sale Notice Business and Noninstructional Operations Sale And Disposal Of Equipment And Supplies Limited Sale Notice <Date of Notice> The, as per AR 3270, Sale and Disposal of Equipment and Supplies, may find that the value of the property is insufficient to defray the costs of arranging a public sale. The property may be sold by informal means of posting a notice of the items and value for sale. The items will be sold to those responding to the notice. Items for limited sale; <item and description> Estimated Value <value> Assistant Superintendent, Business Services
Page 9 Kings County Board of Education Administrative Regulation Exhibit 3270 C - Limited Bid Notice Business and Noninstructional Operations Sale And Disposal Of Equipment And Supplies Limited Bid Notice <date of notice> The, as per AR 3270, Sale and Disposal of Equipment and Supplies, may find that the value of the property is no more than $2,500, then KCOE may sell the property without advertising. Interested parties must submit a bid in writing including the item description, amount, and signed by the bidder. The following items will be sold to those responding to the notice. Items for sale; <item and description> Estimated Value <value> Bid Due Date: Posting Locations: <at least two weeks from date of posting> <list at least three public posting locations> Assistant Superintendent, Business Services
Page 10 Kings County Board of Education Administrative Regulation Exhibit 3270 D - Board Discussion of Disposal of Fixed Assets less than $25,000 Business and Noninstructional Operations Sale And Disposal Of Equipment And Supplies DISCUSSION ITEM TOPIC ISSUE BACKGROUND DISPOSAL OF FIXED ASSETS In accordance with Education Code 1279, the Superintendent has certified that the items listed for disposal are worth less than $25,000 and the report is submitted for your review. BP 3270 requires the County Superintendent or designee to certify the value of the property with value less than $25,000 being disposed in a quarterly report and submitted to the County Board of Education for its review. The Superintendent will use the procedures under Administrative Rule 3270 for disposal of the property. RESOURCE Director of Business Services
Page 11 Kings County Board of Education Administrative Regulation Exhibit 3270 E-Legal References Business and Noninstructional Operations Sale And Disposal Of Equipment And Supplies 1279. (a) The county superintendent of schools shall not in any manner dispose of any item of personal property worth over twenty-five thousand dollars ($25,000) that belongs to the county office of education without meeting the following conditions: (1) Obtaining an independent valuation of the property. (2) Advertising the property for sale in a newspaper of general circulation within the district, or, if there is no newspaper of general circulation within the district, in any newspaper of general circulation that is regularly circulated in the district. The advertisement shall be published for a period of time in accordance with the policy of the county board of education. (3) Bringing the matter to the attention of the county board of education for its discussion at a regularly scheduled public meeting. (4) Obtaining the approval of the county board of education. (b) The county superintendent of schools shall not in any manner dispose of any personal property worth less than twenty-five thousand dollars ($25,000) that belongs to the county office of education unless he or she certifies the value of the property in a quarterly report and submits that report to the county board of education for its review. 17540. The governing board of any school district may sell any personal property or school supplies belonging to the district to the federal government or its agencies, to the state, to any county, city and county, city or special district, or to any other school district or any agency eligible under the federal surplus property law, (40 U.S.C. Sec. 484(j)(3)) and the governing board of another school district may purchase the property, for an amount equal to the cost thereof plus the estimated cost of purchasing, storing, and handling the property, without advertisement for or receipt of bids or compliance with any other provisions of this code. The governing board of any school district may purchase any personal property or school supplies for the purpose of selling them, pursuant to this section. This section does not authorize the purchase, for the purpose of resale, of standard school supplies and equipment by any elementary school district governed by school trustees. 17541. The provisions of Section 17540 shall be applicable to a sale of personal property from a unified school district whose boundaries are coterminous with a city or city and county to that city or city and county. 17542. The governing board of any school district may sell or lease used personal property belonging to the district to the federal government or its agencies, to the state, to any county, city and county, city or special district, or to any other school district, and the governing board of another school district may purchase or lease the property. The selling price and the terms of sale, or the lease price and the terms of lease shall be fixed by the governing boards of the school districts effecting the sale or lease, and approved by the county superintendent of schools. The sale or lease may be made without advertisement for or receipt of bids, or compliance with any other provisions of this code. 17545. (a) The governing board of any school district may sell for cash any personal property belonging to the district if the property is not required for school purposes, or if it should be disposed of for the purpose of replacement, or if it is unsatisfactory or not suitable for school use.
Page 12 There shall be no sale until notice has been given by posting in at least three public places in the district for not less than two weeks, or by publication for at least once a week for a period of not less than two weeks in a newspaper published in the district and having a general circulation there. If there is no such newspaper, then in a newspaper having a general circulation in the district; or if there is no newspaper, then in a newspaper having a general circulation in a county in which the district or any part thereof is situated. The board shall sell the property to the highest responsible bidder, or shall reject all bids. (b) The governing board may choose to conduct any sale of personal property authorized under this section by means of a public auction conducted by employees of the district or other public agencies, or by contract with a private auction firm. The board may delegate to the district employee responsible for conducting the auction the authority to transfer the personal property to the highest responsible bidder upon completion of the auction and after payment has been received by the district. 17546. (a) If the governing board, by a unanimous vote of those members present, finds that the property, whether one or more items, does not exceed in value the sum of two thousand five hundred dollars ($2,500), it may be sold at private sale without advertising, by any employee of the district empowered for that purpose by the board. (b) Any item or items of property having previously been offered for sale pursuant to Section 17545, but for which no qualified bid was received, may be sold at private sale without advertising by any employee of the district empowered for that purpose by the board. (c) If the board, by a unanimous vote of those members present, finds that the property is of insufficient value to defray the costs of arranging a sale, the property may be donated to a charitable organization deemed appropriate by the board, or it may be disposed of in the local public dump on order of any employee of the district empowered for that purpose by the board. 17547. The money received from the sale shall be placed to the credit of the fund from which the original expenditure for the purchase of the property was made or in the general or reserve fund of the district. 17548. The governing board of any school district may dispose of personal property belonging to the district for the purpose of replacement by providing in the notice calling for bids for furnishing new materials, articles, or supplies that each bidder shall agree in his or her bid to purchase the property being replaced and to remove it from the school grounds and shall state in his or her bid the amount which he or she will deduct from the price bid for furnishing new materials, articles, or supplies as the purchase price for the personal property being purchased from the district. The board shall let the contract to any responsible bidder whose net bid is the lowest, or shall reject all bids. 17549. The governing board of any school district may enter into contracts with manufacturers or suppliers for the exchange of household appliances and equipment belonging to the district and used for instructional purposes for new property of like class and kind for a similar use without advertising for or taking bids. The cost to the district for the exchange shall not exceed the excess, if any, of the manufacturer's or supplier's selling price of the new property over the original cost to the district of the property being disposed of by the district, plus any applicable tax. 17550. The governing board of any school district may, when calling for bids and letting contracts for constructing new school buildings, or repairing, altering, adding to, or reconstructing existing school buildings, or demolishing existing school buildings, require each bidder for the performance of the work to agree in his or her bid to purchase and to remove from the school grounds all old materials required by the specifications to be removed from any existing school building on the same school grounds and not required for school purposes and to state in his or her bid the amount which he or she will deduct from the price bid for the work as the purchase price of the old materials. The board shall let the contract to any responsible bidder whose net bid is the lowest, or shall reject all bids.
Page 13 17551. The governing board of a school district may authorize any officer or employee of the district to sell to any pupil personal property of the district which has been fabricated by such pupil, at the cost to the district of the materials furnished by the district and used therein. 17552. The governing board of a school district may sell to persons enrolled in classes for adults maintained by the district any materials that may be necessary for the making of articles by those persons in those classes. The materials shall be sold at not less than the cost thereof to the district and any article made there from shall be the property of the person making it. 17553. A school district may, in accordance with regulations adopted by the governing board of the district and for educational use, sell, give, or exchange for similar published materials, published materials prepared by the district in connection with the curricular and special services that the district is authorized to perform. Unless restricted by the regulations of the governing board, the sale or gift may be made to, and the exchange may be made with, any person, political subdivision, public officer or agency, or educational institution. The distribution of the published material in accordance with this section is declared to be a public purpose and in furtherance of Article IX, Section 1, of the Constitution. A school district may also license the use of copyrights held by the district, to the same persons or entities and for the same purposes as provided in the above paragraph. The district shall grant a license to any public agency organized under the authority of this state, unless an exclusive license has previously been granted a private publisher. Any charge which may be assessed a public agency for the license to use the copyright or for materials, to which the district holds the copyright, shall not exceed the cost to the district of the preparation and reproduction of the materials. Any granting of a license, by a school district, to reproduce copyrighted material is declared to be for a public purpose in furtherance of Article XI, Section 1, of the Constitution. 17554. Notwithstanding any other provision of law, the governing board of any school district owning land upon which agricultural products are grown may enter into agreements with an agricultural cooperative or association for the purpose of maintaining, harvesting or selling the products. 17555. Notwithstanding any other provision of this article, the governing board of any school district may sell or lease any personal property belonging to the district to any private educational institution for use in any summer school which the institution offers in a facility of the district used under a lease or agreement entered into pursuant to Section 17527. Federal law 484 Section J(3) Except for surplus personal property transferred pursuant to paragraph (2) of this subsection, the Administrator shall, pursuant to criteria which are based on need and utilization and established after such consultation with State agencies as is feasible, allocate such property among the States in (FOOTNOTE 1) a fair and equitable basis (taking into account the condition of the property as well as the original acquisition cost thereof), and transfer to the State agency property selected by it for distribution through donation within the State - (FOOTNOTE 1) So in original. Probably should be ''on''. (A) to any public agency for use in carrying out or promoting for the residents of a given political area one or more public purposes, such as conservation, economic development, education, parks and recreation, public health, and public safety; or (B) to nonprofit educational or public health institutions or organizations, such as medical institutions, hospitals, clinics, health centers, drug abuse treatment centers, providers of assistance to homeless individuals, providers of assistance to families or individuals whose annual incomes are below the poverty line (as that term is defined in section 9902 of title 42), schools, colleges, universities, schools for the mentally retarded,
Page 14 schools for the physically handicapped, child care centers, radio and television stations licensed by the Federal Communications Commission as educational radio or educational television stations, museums attended by the public, and libraries serving free all residents of a community, district, State, or region, which are exempt from taxation under section 501 of title 26, for purposes of education or public health (including research for any such purpose). The Administrator, in allocating and transferring property under this paragraph, shall give fair consideration, consistently with the established criteria, to expressions of need and interest on the part of public agencies and other eligible institutions within that State, and shall give special consideration to requests by eligible recipients, transmitted through the State agency, for specific items of property.