ITEM 3.7 Policy for donation/surplus equipmentk
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MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEMEMOMMMM
MEETING DATE:
Administration
Lori Johnson, City Administrator
July 25, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent
3.7
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend adoption of the attached Policy for Donation of Surplus Equipment to a Nonprofit
Organization.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
Legislation was passed this year allowing cities to donate certain surplus equipment to qualified non-
profit 501(c)(3) organizations; Minnesota Statutes Section 471.3459 becomes effective on August 1,
2016. Previously, cities were not allowed to donate equipment.
In order to donate equipment per the new law, the City must approve a donation policy. Attached is the
proposed Policy for Donation of Surplus Equipment to a Nonprofit Organization (Policy) along with an
application form. The Policy specifies what equipment qualifies, how that equipment may be deemed
as surplus equipment, and the process for City approval. It further defines procedures for application
by qualified organizations. Note that all equipment donations above $500 must be approved by the
City Council.
To the extent possible, all of the City's surplus property is and will continue to be sold to generate
revenue unless the cost of selling the item exceeds the value of the item. In that case, the property is
now recycled or disposed of properly; in the future, those items could be donated to a qualified non-
profit organization. Surplus equipment, when available, will be noticed on the City's website.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• City of Otsego Donation Policy
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve the City of Otsego Policy for Donation of Surplus Equipment to a Nonprofit
Organization.
BUDGET INFORMATION
FUNDING
BUDGETED: ❑ YES
Iffin M,
City of Otsego, Minnesota
Policy for Donation of Surplus Equipment to a Nonprofit Organization
Purpose
The purpose of this Policy is to establish procedures for the donation of Surplus Equipment by the
City to a Nonprofit Organization as required by Minnesota Statute § 471.3459 (2016).
Scope
This policy applies to all City departments that generate Surplus Equipment and governs the actions
of all City employees and officials.
Definitions
"City" means the City of Otsego, Minnesota.
"City Council" means the governing body of the City.
"Donation" means to contribute, donate or give Surplus Equipment at no cost to a Nonprofit
Organization that serves a public purpose and benefits its community as a whole.
"Eligible Organization" means a Nonprofit Organization serving one or more of the following
functions: cultural, historical, educational, safety, social services, environmental or economic.
"Fair Market Value" means the price at which property would change hands between a willing
buyer and a willing seller, neither being under any compulsion to buy or to sell and both having
reasonable knowledge of all relevant facts.
"Nonprofit Organization" means an organization formed under Section 501(c)(3) of the Internal
Revenue Code.
"Policy" means this Policy adopted by the City Council.
"Surplus Equipment" means equipment used by the City's public works department, and cellular
phones and emergency medical and firefighting equipment that is no longer needed by the City
because it does not meet industry standards for emergency medical services, police, or fire
departments or has minimal or no resale value.
"Surplus Equipment Form" means the form attached as Exhibit I to this Policy that must be filled
out by a Nonprofit Organization requesting a Donation of Surplus Equipment.
Procedure
The City shall determine all Surplus Equipment and may offer it for Donation in conformance with
the following guidelines:
1. Identify Surplus Equipment. Department supervisors are responsible for monitoring their
equipment and shall identify and report all Surplus Equipment to the Finance Director on at least an
annual basis.
2. Determine the Fair Market Value of Surplus Equipment. The Finance Director shall work with
City staff to determine the Fair Market Value of the Surplus Equipment.
3. City Council Declaration. The City Administrator will forward a list of the Surplus Equipment
with each item's Fair Market Value to the City Council who shall approve or deny the Surplus
Equipment as eligible for Donation. The City has no obligation to make a Donation of Surplus
Equipment. Surplus Equipment that is not donated may be sold, recycled or discarded in the
discretion of the Finance Director.
4. Donation. After the City Council has determined the Surplus Equipment is eligible for
Donation, the Finance Director is responsible for coordinating the Donation of the Surplus
Equipment in accordance with the terms of this Policy.
5. Transfer between Departments. All Surplus Equipment must first be considered for transfer
between departments for the benefit of the City.
6. Advertisement. Surplus Equipment shall be posted as eligible for Donation on the City's
website. The City may also use other reasonable means to notify Eligible Organizations about the
availability of Surplus Equipment. The City shall wait at least 30 days after advertising Surplus
Equipment before approving any Donation.
7. Surplus Equipment Form. Eligible Organizations interested in Surplus Equipment shall fill out a
Surplus Equipment Form and submit the form to the Finance Director.
8. Approval of Donation. If the Surplus Equipment has a Fair Market Value less than $500.00, the
City Administrator shall approve the Donation to an Eligible Organization, subject to review by the
City Council. If the Surplus Equipment has a Fair Market Value greater than $500.00, the City
Council must approve the donation by a majority vote of the City Council.
9. Prioritization of Donations. If more than one Eligible Organization requests a Donation for the
same Surplus Equipment, the City shall consider factors it deems relevant including how the
Surplus Equipment will be used, the benefit to the Eligible Organization, the impact on the City,
how the Donation will accomplish goals of the City Council, and any previous Donation to the
Eligible Organization.
W. Conflict of Interest. All City employees and officials are prohibited from taking possession of
any Surplus Equipment on behalf of an Eligible Organization.
11. As Is. A Donation of Surplus Equipment is made "as is" with no warranty, guarantee or
representation of any kind, express or implied, as to the condition, utility, or usability of the Surplus
Equipment offered. The Surplus Equipment may be defective and cannot be relied upon for safety
purposes.
12. Title. The Finance Director shall cause any title or other ownership documents to be transferred
to the Eligible Organization at the time of transfer. Any fees required to transfer the Surplus
Equipment are the responsibility of the Eligible Organization.
13. Transportation. In the Surplus Equipment Form, the Eligible Organization must provide a
detailed plan for transporting the Surplus Equipment from the City to the Eligible Organization.
The Eligible Organization must pay all expenses associated with the transportation of the Surplus
Equipment.
14. Delegation. The City Administrator may delegate specific responsibilities for implementing
this Policy.
15. Documentation. The Finance Director shall document the Donation of all Surplus Equipment
and shall keep such records in accordance with the City's Records Retention Schedule.
16. Review of Policy. The City Administrator is responsible for maintaining and reviewing this
Policy. Any changes to this Policy must be approved by the City Council.
Adopted: July 25, 2016
City of Otsego, Minnesota
Exhibit 1
Surplus Equipment Form
Organization Name:
Organization Address:
Organization Website:
(Attach proof of status as a nonprofit corporation under Section 501 (c)(3) of the Internal Revenue
Code.)
Organization Purpose:
Point of Contact
Name:
Address:
Email:
Phone:
City Surplus Equipment of Interest:
How will the requested Surplus Equipment benefit your organization?
How do you plan to transport the surplus property from the City to your location?
DISCLAIMER OF WARRANTIES: The City makes no agreement, warranty or representation,
either expressed or implied, as to the value, design, condition, merchantability or fitness for any
particular purpose or use of the Surplus Equipment by the recipient or any other user.
The recipient acknowledges the Surplus Equipment may be defective and that it cannot be relied
upon for safety purposes. The recipient has a duty to inspect the Surplus Equipment before it is
used for any purpose.
The recipient acknowledges that the City is not a manufacturer of the Surplus Equipment or a dealer
therein; that the Surplus Equipment is being provided "as -is" and "with all faults." It being agreed
and understood that all of the aforementioned risks are to be borne by the recipient or user of the
Surplus Equipment.
In no event shall the City be liable for any damages in connection with or arising out of the
recipient's or any other person's or entity's use of the Surplus Equipment.
I acknowledge that the Donation of any Surplus Equipment to my organization is subject to the
City's Policy for Donation of Surplus Equipment to a Nonprofit Organization.
I have authority to request a Donation from the City and to bind my organization to the terms of this
form.
Signature of Applicant
Position in Organization/Title
Date