Book:
District Procedure
Section: D - Fiscal Management
Title: Disposal Of School Property
Number: DO
Status: Active
Legal: O.C.G.A., 20-2-520, 36-9-2; Duffee v. Jones, 208 Ga. 639, 644 (1952); Att'y Gen.
1961, p. 172
Adopted: 07/01/1986
Last Revised: 05/09/1991
Last Reviewed: 04/15/1999
Policy Detail
1. Purpose. To provide procedures and instructions for the disposal of surplus school
property in
accordance with the policies established by the Georgia Board of Education, the
State of
Georgia and the United States Office of Management and Budget.
2. Scope. The instructions contained herein provide procedures to be followed in
declaring,
processing and the final disposal of surplus school property. The goal is to assure
the most
effective, economical use and disposal of school material assets. Surplus status may
be declared
due to obsolescence, excessive operational costs, maintenance costs or other
appropriate factors.
The disposal of surplus is divided into two separate categories:
A. Surplus equipment and material.
B. Real property to include buildings and land.
3. Restriction. Employees of the Board of Education are prohibited from purchasing
surplus
property under the following conditions:
A. If that employee declared the property surplus.
B. If that employee recommended to the responsible individual that the
property should be
declared surplus.
C. Other employees may purchase surplus properties under the same
conditions that are made
available to the public.
D. Sales to employees are not authorized except during that period that the
sales have been
advertised to the public.
4. Sale of Real Property. The Board of Education assigns its Land Agent, Capital
Programs,
Support Services Division as its representative in the sale of real property. Prior to
any sale,
the Board shall have the property appraised by two professional appraisers who
shall make
separate reports.
A. The Board may sell the property by competitive bidding, or authorize sale
of the property in
such other manner or on such other terms, as it considers reasonable.
B. If the competitive bidding process is used, a notice of intent to sell shall be
published two
times in one or more newspapers of general circulation in the metro area. The
notice shall
state that bids will be received on a specified date.
C. All bids shall be available for examination by the public.
D. The Board may employ a broker or auctioneer who may be paid from the
proceeds of the sale.
The broker or auctioneer may not be one of the appraisers.
5. Disposition of Surplus Equipment and Materials. The Board of Education assigns
the
Coordinator of Warehouse and Supply Services as its agent to manage the disposal
of all surplus
equipment and materials that are no longer needed for school utilization.
A. The initial surplus determination is made by the principal of a school or a
department head
and is submitted on a Surplus Pickup Request to the Coordinator of
Warehouse and Supply
Services. This Surplus Pickup Request can be found on the current electronic
school e-mail
system. This form can also be used to transfer surplus material from one
location to another
within the school system.
B. Equipment and material which have been declared surplus are not allowed
to be removed
from their assigned location until they have been declared as surplus by the
Coordinator of
Warehouse and Supply Services.
C. The Coordinator of Warehouse and Supply Services will take action on all
requests for
disposal of surplus items based on the following criteria:
(1) Other schools/departments utilization.
(2) Outdated or obsolete.
(3) The time and cost to repair.
(4) Trade-in value.
(5) Available storage space.
(6) Safety issues.
(7) Market value and desirability.
D. When equipment and materials have been officially declared as surplus,
they will be
transferred to a warehouse location where they will be inventoried and
processed. Those
surplus items which cannot be utilized elsewhere in the school system shall
be disposed of by
one of the processes described below.
(1) Public Notice. If the competitive process is to be used, a notice of
intent to sell shall be published two times in one or more newspapers
of general circulation for the metro area. Notice will be sent out within
the school system. A notice will be mailed/faxed to any potential buyer
who has expressed an interest and provided their address. Specialized
surplus equipment that becomes available between normal sales may
be advertised utilizing the normal quote solicitation procedure.
(2) Sealed Bid Procedure. These sales will normally include vehicles
and equipment that are projected to sell for $50 or more. Each item in
this category will be assigned a lot number and will be listed on a bid
sheet.
(a) Bid Sheet. This sheet will provide as much information
as possible for each item to include, if available,
manufacturer, model, serial number, school system bar
code number, description, age, etc. A suggested price for
any item can be included on the bid sheet. This price
provides the potential buyer the average price that a
similar item sold for in the last sale. The bid sheets can be
handed out to the public before the scheduled sale.
(b) Bid Submission. Customers must submit their bids on
a standard Warehouse and Supply Services form. They
can fax this form in, mail it in or submit it at the sale site.
If received via mail or fax, the form will immediately be
placed in a sealed envelope. When a customer submits
their bid at the site, they will submit it in a sealed
envelope. Bids will not be received after the end of the
posted time and date.
(c) Public Inspection of Bid Items. Potential buyers will be
allowed to inspect all surplus items and will be allowed to
review any available records in regards to any item.
(d) Review of Submitted Bids. The Coordinator of
Warehouse and Supply Services will review all submitted
bids and determine which potential buyer has submitted
the highest bid for each item. The potential buyer will
then be notified by telephone and allowed five working
days to purchase the item. If they decline their option, the
next highest bidder will be notified. Once a buyer agrees
and pays for the item, they normally have two weeks to
remove their purchase. Sales taxes will be added to the
bid price. All purchases must be paid in cash or a
cashier's check. If it is determined that there was no bid
received for an item or that a bid received was not
acceptable, then the surplus items will be sold on a
negotiated basis or disposed of by the Coordinator of
Warehouse and Supply Services in the best interest of the
system.
(3) Cash and Carry Sales. The most efficient method of disposing of low
value surplus
equipment and materials is by assigning a standard price to every
item. This price is
based on past sales and the current market value of the item. The
customer places in a
staging area what they want to purchase; and when they are ready to
check out, they pay
cash and remove their purchases at that time. Sales taxes are included
in the price to
make the transaction simple and fast.
(4) Public Auction. A public auction may be held in lieu of the sealed
bid process. Surplus
items will be numbered and identified on a bid sheet as in the sealed
bid process. A
professional auctioneer can be utilized or the Coordinator of
Warehouse and Supply
Services can operate the auction. The highest bidder for each item
must pay cash or
submit a cashier's check. Sales taxes will be added to the bid price.
Buyers have two
weeks to remove their purchase.
(5) Sales to non-profit organizations. Non-profit organizations may
purchase surplus items in
between public sales. The price for each item sold will be based on the
last public sale.
(6) Contributions to non-profit organizations. Surplus items may be
contributed to other
public supported educational, governmental or medical non-profit
organizations.
(7) Surplus items which are not disposed of by any of the procedures
described above and
which have no economic value to the school system, may be sold as
scrap or taken to the
nearest landfill at the least cost to the school system.
E. Reusable Surplus Items.
(1) Surplus items stored in the warehouse can be issued to any school
or department. The
Coordinator of Warehouse and Supply Services will maintain a current
inventory of all
usable surplus items. Schools and departments can independently
schedule a time to
screen surplus. A screening date is scheduled for all the schools and
departments before
any public sale.
(2) Items that a principal of a school or a department head have
determined are surplus to
their needs may know another school or department that wants the
items. This identified
surplus equipment can be transferred from the old location directly to
the receiving
location. The same Surplus Pickup Request used to declare the item
surplus will be used.
The only difference is that the new location needs to be indicated on
the form.
F. Surplus Records. The Coordinator of Warehouse and Supply Services is required
to maintain records of sales and disposal of any surplus material.
(1) A copy of every surplus equipment transaction will be provided to
the Coordinator of
Property Control.
(2) Titles to vehicles and equipment will be issued to the buyer once
payment is received.
(3) Vehicle maintenance records. All available records will be provided
to the buyer.
(4) Tax Exemption. Buyers who claim tax exemption must provide
written State of Georgia
certification at the time of purchase.
(5) Bill of Sale. Every surplus sale will have a bill of sale. One copy is
provided to the buyer
and the other becomes the record. All bill of sales will include the
following statement:
The following surplus property is no longer needed by the Fulton
County Board of
Education and has been sold to the above listed individual. The
material is sold as is and
there are no guarantees to its serviceability.
(6) All surplus records shall be available for examination by the public
and the system audit.
0 Leigh Noble/Emgr
Cross References: DO – Disposal of School Property Policy
1 1 Tina M Walker/Em 0
District Procedure District Procedure
D - Fiscal Manage D - Fiscal Manage Disposal Of Scho Disposal Of Scho DO Active
07/01/1986 05/09/1991 04/15/1999 08/10/2005 04:49 AM
Leigh Noble 09/11/2006 Tina M Walker