7.3.13 Surplus Personal Property/Equipment Disposal

Responsible Position

Chief Financial Officer

RELATED ITEMS

Minnesota State Board Policy

Minnesota State System Procedure

PROCEDURES

Purpose

To establish a process that disposes of Alexandria Technical and Community College (ATCC) surplus personal property and buildings in an efficient and cost-effective manner.

Definitions

For the purpose of this procedure only, the following words and terms are defined as follows.

Surplus property

Any state-owned property, including commodities, equipment, materials, supplies, books, printed matter, buildings, and other property, that is obsolete, unused, not needed for a public purpose, or ineffective for current use. Any liens against property must be satisfied before the property can be considered surplus.

Personal property

Defined the same as surplus property above, with the exclusion of buildings. Any liens against personal property must be satisfied before the property can be considered surplus.

Equipment and Personal Property

Below are the steps in order that the college uses when disposing of equipment and any surplus property:

Notify ATCC employees internally of the items no longer needed to see if the items can be used in other offices, departments, or divisions of the college.
College employee contacts the Director of Facilities and Security to have the items posted to the purchasing user list through Minnesota State to see if any other campuses would want to acquire the items.
Offer the items to any state agency or political subdivision for purchase. This includes independent school districts and 501(c)3 non-profit organizations.
Offer for sale to the general public by sealed bids, public auction, negotiated sale, pre-priced garage sale, or non-sale by consignment/donation or use of the State's Surplus Services Program.

Any items remaining after using one or more of the above options will be disposed of or recycled by an approved vendor.

No cash is to be accepted for any item sold. All transactions must be by check, money order, credit card, or purchase order. All checks, money orders, credit cards, and purchase orders are to be made payable to (or directed to) Alexandria Technical and Community College.

When a piece of inventoried equipment is sold, traded or scrapped, the inventory tag should be removed and given to the Business Services Office for removal from the inventory list.

A Property Disposition Form must be completed and signed by both parties for each piece of equipment and any surplus property disposed of by ATCC.

Buildings

If ATCC determines that a state-owned building is no longer used or which is a fire or safety hazard, the college will sell, demolish, or otherwise dispose of the building.

Before disposing of any building, a review should be done to determine the presence of any hazardous materials.

If a building has a real net value of $5,000.00 or more (after considering costs of removal, demolition, salvage and restoration of land), the building will be sold through sealed bids or at a public auction to the highest responsible bidder. A sale may not be made until publication of notice of the sale in a newspaper of general circulation in the area where the property is located and any other advertising deemed appropriate. If the sale is made a public auction, a duly licensed auctioneer must be retained to conduct the sale. The auctioneer's fees and other administrative costs of the auction must be paid from the proceeds from which an amount sufficient to pay them is appropriated.

If, after appraisal by a licensed appraiser, the building is deemed to have no net value, ATCC follows the procedures outlined under "Equipment and Personal Property" of this procedure for disposal of the building.

State Employees or Officers

ATCC complies fully with all of the conditions of Minnesota Statutes (M.S.) 15.054. In accordance with M.S. 15.054, no state employee or officer shall sell or give away to any other state employee or officer any personal property or materials owned by the state except such items may be sold to a state employee after reasonable public notice at a public auction or by sealed bid if the state employee is the highest bidder is not directly involved in the auction or sealed bid process. A state employee may purchase no more than one motor vehicle from the state in any 12-month period.

A person violating M.S. 15.054 is guilty of a misdemeanor. This does not apply to the sale of personal property or materials acquired or produced by the state for sale to the general public in the ordinary course of business. State employees are not prohibited from selling or possessing for sale public property if the sale or possession for sale is in the normal course of the employee's duties.

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POLICIES & PROCEDURES