Chapter Fourteen: Disposing of Surplus Property
This chapter discusses the various methods of disposing of surplus property and the procedures for recording such dispositions.
Reelection Restrictions on Surplus Property
When county officials are running for reelection, there are restrictions for declaring county-owned property as surplus. The restrictions are provided in the following table:
| Situation | Declaration of Surplus Property by Board of County Commissioners |
|---|---|
| Nonelection year or no officials running for reelection | No special restrictions |
| Incumbent files for reelection and draws no opponent |
The restriction is lifted after the filing period expires. 19 O.S. § 421.2(C) |
| Only one county commissioner up for reelection |
Two commissioners not up for re-election may vote to declare a county- owned property as surplus. 19 O.S. § 421.2(C) Note: The State Auditor and Inspector recommends the board of county commissioners refrain from declaring surplus property for any elected official up for re-election beginning 30 days prior to filing and ending when it is determined the incumbents will succeed themselves in office or when a new official takes the oath office. |
| Two county commissioners up for reelection |
The board of county commissioners may not vote to declare a county- owned property as surplus, beginning 30 days prior to filing and ending when the new term begins or when it is determined that the incumbents will succeed themselves in office. This prohibition shall only apply to the property in use by and/or recorded on the inventory of the district of the county commissioner(s), the elections of which are set for the same date and not the remaining county officers. 19 O.S. § 421.2(B) This prohibition shall cease to apply to any property in use by and/or recorded on the inventory of the district of any individual incumbent county commissioner who draws no opponent or who wins reelection at either the primary or general election. 19 O.S. § 339 |
| If it becomes impossible for the incumbent to serve another term |
Prohibited 19 O.S. § 421.2 |
| Elected official running for reelection | Prohibited. While not prohibited by Oklahoma Statute, it is a highly recommended best practice. |
Declaration of Surplus
Every item of surplus property that is listed on the county’s inventory and has an original cost of more than One Thousand Dollars ($1,000.00) for equipment and more than Five Hundred Dollars ($500.00) for IT hardware/software must be disposed of in a manner provided by law. The board of county commissioners must be notified in writing of any property that becomes surplus and is subject to disposal.
19 O.S. § 178.1
The county officer must also complete SA&I Form No. 397A, Declaration of Surplus, and submit it to the board of county commissioners for approval prior to any disposal of fixed assets.
Note:
For those inventory items costing less than Twenty-Five Hundred Dollars ($2,500.00) for equipment and less than Five Hundred Dollars ($500.00) for IT hardware/software that are not on the official inventory, it is a best business practice is to follow the disposal methods outlined in this chapter.
Methods of Disposition
The board of county commissioners has several methods authorized by law to dispose of surplus equipment. Each of these methods requires a surplus resolution.
- Sealed bid
- Public or internet auction
- Trade-in
- Sale to tribal government, a state agency, or political subdivision
- Sale, transfer, trade, or disposal to a political subdivision
- Transfer to a political subdivision
- Junking
By Sealed Bid
Property may be disposed of by sealed bid by following the procedures listed below:
The Board of County Commissioners
The board of county commissioners has the following responsibilities:
- Declare an item as surplus;
- Advertise the sealed bid sale in a newspaper of general circulation for two successive weekly issues;
- Note: Bids shall be in writing, sealed, and delivered to the county clerk.
- Open the bids at the next regular meeting after at least 15 days have expired since the first publication of the sale notice;
- May either accept the highest and best bid or reject all bids.
By Public Auction
Counties may hold a public auction to dispose of surplus equipment by following the procedures listed below:
The Board of County Commissioners
The board of county commissioners has the following responsibilities:
- Declare an item as surplus;
- Advertise the sealed bid sale in a newspaper of general circulation for two successive weekly issues.
Warning: The advertisement must be a legal notice as defined by the statutes. An advertisement such as a sale bill by the auctioneer does not meet the requirements of a legal notice.
For auctions with other counties, each participating county publishes its own separate legal notice.
The Purchasing Agent
To establish an appraised value for an item to be sold at a public auction, the purchasing agent may refer to an industry-recognized appraisal manual for used construction equipment to estimate the value of the item being sold or obtain appraisal quotes from at least two vendors in the business of selling items similar to the one being sold.
At an Oklahoma Department of Transportation (ODOT Auction)
The board may, by resolution, dispose of road and bridge machinery and equipment through ODOT by using the following procedures:
The Board of County Commissioners
The board of county commissioners has the following responsibilities:
The County
The county has the following responsibilities:
- Prepare the road machinery or equipment for sale;
- Deliver to ODOT Division Headquarters.
These public auctions are held yearly at various ODOT Division Headquarters around Oklahoma.
At a Circuit Engineering District (CED Auction)
The board may, by resolution, dispose of surplus property through a CED auction by using the following procedures:
The Board of County Commissioners
The board of county commissioners has the following responsibilities:
- Declare road machinery or equipment as surplus;
- Must comply with CED auction policies.
Advertisement of surplus property consigned to sell at a CED auction must be provided by the auction company under contract to conduct the sale. Advertising must attempt to attract the most potential buyers. Advertising media may include, but not be limited to, sale flyers, newspapers, radio, television, and internet postings.
Through an Internet Auction
This method is for selling surplus property and may include online bidding hosted by a third party.
The Board of County Commissioners
The board of county commissioners has the following responsibilities:
- Declare road machinery or equipment as surplus;
- Advertise the internet auction in a newspaper of general circulation for two successive weekly issues.
Trade-In
Any tools, apparatus, machinery, or equipment belonging to the county that has an original cost exceeding One Thousand Dollars ($1,000.00) may be used as a trade-in on a cash purchase or lease purchase of any other tools, apparatus, machinery, or equipment as described below:
- May be used as a trade-in on a cash
- May be used as a trade-in on a lease
- Lease purchase must be paid
- May be used as a trade-in to a vendor or on statewide contract (if this is an option) by acquiring used equipment values.
- 19 O.S. § 421.1(I)
The Board of County Commissioners
The board of county commissioners should declare road machinery or equipment as surplus.
The Purchasing Agent
To establish an appraised value for an item to be traded in, the purchasing agent may refer to an industry- recognized appraisal manual for used construction equipment to estimate the value of the item being sold or obtain appraisal quotes from at least two vendors in the business of selling items like the one being sold.
The written appraisal quotes must contain the following information:
Sale to a Tribal Government or State Agency
The board of county commissioners may sell any materials, tools, apparatus, machinery or equipment to a tribal governmental entity or state agency after being declared as surplus.
19 O.S. § 421.1(D)
To qualify, state agencies or tribal governments must be subject to the Oklahoma Central Purchasing Act.
Note:
When a county plans to sell tools, apparatus, machinery, or equipment to a state agency or a tribal government using this method, it is highly recommended that the county seeks legal advice from their district attorney regarding Attorney General Opinion 1998-48.
Sale, Transfer, Trade, or Dispose to Tribal Government, County, or Political Subdivision
For this method of disposing of equipment and materials, counties should use the following procedures:
The Board of County Commissioners
The board of county commissioners:
- May, by resolution, enter into an agreement with any tribal government entity or other county or political subdivision at a price agreed upon by both governing bodies;
- Send the resolution to other entity for authorization to sell;
- Transactions made pursuant to this method shall not be subject to provisions to Section 1(C) of Title 19 which requires the sealed bid process, public auction, or internet auction.
- Refer to Chapter Fourteen, “Disposing of Surplus Property,” for more information
Transfer to a Political Subdivision
Any machinery, equipment, or vehicle that is considered surplus by a unanimous vote of the board of county commissioners may be transferred to another political subdivision of the state. Upon such transfer, the subject property shall be removed from the inventory of the county.
When the political subdivision receiving the property declares its surplus, the governing board must give written notice to the county of its intent to transfer the property back to the county. The board of county commissioners shall have up to 15 days from the date of receipt of the notice to either accept or reject the property. The political subdivision must transfer the property back to the county only if the board of county commissioners agrees to accept the property or fails to respond within 15 days.
Junking
Property considered beyond economical repair and surplus to the needs of the county may be disposed of by junking. It is recommended that the county establish a policy for the disposal of junked property.
The board of county commissioners must declare the property as surplus by resolution. If the junked item is used for spare parts, it is still the property of the county and should remain on the county inventory record.