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ITEM: AUTHORIZATION OF DISPOSITION OF SURPLUS TANGIBLE PERSONAL PROPERTY
REQUEST: Authorization to approve the FY 2014 disposition of surplus tangible personal property, including retired items.
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EXPLANATION: The following is a summary of one hundred and seven (107) surplus items of tangible personal property (TPP) or fixed assets meeting disposition criteria per the Wellington Purchasing and Procurement Policy Chapter 13, Section D (Exhibit A is attached). The initial total purchase cost of these items was $592,148.48 with an accumulated total depreciation of $558,115.92, resulting in a current value of $34,032.56.
Fixed assets (vehicles, heavy equipment, portable, office and computer) will be sold through GovDeals, Wellington's approved public auction vendor. In the event that portable, office and computer equipment does not sell through GovDeals, Wellington will recycle these items utilizing a state certified recycling vendor. Additionally, twenty-seven (27) items were identified as items to be scrapped.
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METHOD OF DISPOSAL |
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By Selling |
By Scrapping |
Total Surplus |
Acquisition Cost of Items To Be Disposed |
$553,647.62 |
$38,500.86 |
$592,148.48 |
Accumulated Depreciation |
$523,218.44 |
$34,897.48 |
$558,115.92 |
TOTAL NET VALUE |
$30,429.18 |
$3,603.38 |
$34,032.56 |
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Surplus TPP or fixed assets are identified annually as part of a Village-wide departmental inventory and condition assessment. A master list of these fixed assets, verified by OFMB, is categorized as no longer useful, obsolete, or to be exchanged for a new purchase/replacement.
In addition, fleet maintenance evaluated the vehicles and heavy equipment, and determined that due to their age, condition and high cost of maintenance, they needed to be replaced. This process, including the various methods of disposal, is pursuant to our Purchasing and Procurement Policy and is consistent with Florida Statutes.
Items to be sold will be placed on GovDeals.com, an online auction site. During calendar year 2014 the Village has successfully sold 30 items, ranging from vehicles, computer equipment, and lighting fixtures for approximately $95,000, at no charge to the Village, by utilizing this online service.
As part of the FY 2013 audit, Grau & Associates identified three (3) items with a total net value of approximately $50,000 which had been disposed of during the wastewater treatment plant expansion project, without the required prior Council approval. Based on these findings, staff conducted an internal audit of disposed fixed assets from 2008 through 2014 and found additional items with a net value of approximately $3,700 (attached as Exhibit B) had been disposed of without prior Council approval. While these items were disposed of consistent with the allowed methods pursuant to our Purchasing Manual (recycle, trade in, etc.) and the required disposition forms and supervisory signatures were provided, Council approval was not obtained.
In an effort to ensure any future fixed assets requiring disposition are previously approved by Council, staff has reviewed and modified our disposition approval procedures based on these findings. In addition, an emphasis on disposition procedures will be placed in upcoming annual Purchasing employee training sessions.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Revenues are anticipated as result of surplus tangible personal property sold. Proceeds are posted as Miscellaneous Revenue.
WELLINGTON FUNDAMENTAL: Protecting our Investment
RECOMMENDATION: Authorization to approve the FY 2014 disposition of surplus tangible personal property, including retired items.