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SURPLUS PROPERTY POLICY
EFFECTIVE: MARCH 7, 2024
PURPOSE:
This policy provides guidance to employees for the disposal, donation, recycling, or transfer of
City of Muskegon owned property that is no longer needed or has no practical use to a particular
city department. For the purposes of this policy, property is defined as moveable assets. City
owned real estate is covered under a separate policy.
The City of Muskegon maintains this policy with the objectives of:
• Protecting city assets; and
• Fairly distributing surplus property
OPERATIONAL GUIDELINES:
This policy applies to all city employees and users including, but not limited to, full time, part
time, and intermittent/seasonal/special employees.
This policy applies to all city owned property except the following.
1. Items purchased with grant funds which shall be disposed of in accordance with
applicable grant requirements. If no disposal requirements exist within the grant, this
policy governs.
2. Seized or unclaimed property within the Police Department which shall be handled
and disposed of in accordance with applicable federal, state, and local requirements.
3. Items acquired through the military surplus 1033 program shall be disposed of in
accordance with the applicable program requirements.
4. Computer and electronic data storage equipment which shall be returned to the
Information Technology Director for proper wiping and disposal. This includes, but is
not limited to, computers, laptops, tablets, servers, routers and hubs, phones,
cameras, fax machines, copiers, scanners, monitors, external hard drives, and any
similar device that may hereafter become available for use.
PROCEDURES:
1. Division Heads shall annually prepare an itemized list of surplus property for their division and
forward it to the City Manager. The list shall include an estimate of fair market value (as is, where
is condition) for each item as well as recommendations for disposal of the property that protect
the interests of the city and return the most benefit to the city. As circumstances warrant, items
can be added to the annual list and forwarded to the City Manager on a quarterly basis
throughout the year.
2. Options for property with a remaining value in excess of the cost to sell or dispose of it are
noted below.
• Transfer to another division
• Trade-in for newer equipment
• Donate to another governmental agency or non-profit
• Sell to one or more buyers with a negotiated price
• Sell as scrap
• Use for parts
• Sell through an auction/bidding process
3. Disposition of any one item with an estimated value of $2,000 or less can be determined by
the Division Head as long as all provisions in this policy are met. Items meeting this criterion are
not required to be tracked unless the item is equipment with a title. Any property that has
reached the end of its useful life, where its nominal value is less than the cost of sale, can be
offered to staff for their own personal use with the provisions noted below.
• Items must be offered to all staff.
• Staff will make their interest known to the Division Head and per the deadline set.
• The Division Head will randomly choose who receives the property.
• The employee agrees in writing not to sell or otherwise garner personal gain by accepting
the property.
4. The Department of Public Works will administer the process for selling any property through
a bidding process with our online auction vendor. Each item will be advertised by the vendor for
a minimum of one week, and a link to the vendor’s advertisement will be provided on the city’s
website.
5. The Division Head disposing of the surplus property shall complete the Surplus Property
Disposal Form and provide a copy to the Finance Department who will update city records such
as insurance records, audit lists, and grant requirement documentation. The Division Head will
be responsible for updating asset management plans and capital improvement documents. The
Surplus Property Disposal form must be provided to the Finance Department within 10 working
days of the disposal.
STANDARDS OF CONDUCT/REQUIREMENTS:
1. No city employee may dispose of city property for personal gain or to benefit any entity other
than the City of Muskegon.
2. City employees and their immediate relatives are prohibited from acquiring any surplus
property from the City of Muskegon which has a value in excess of the cost to sell or dispose of
it with the exception of items offered for bid by a third party.
3. City employees shall not claim ownership of city owned property which has been abandoned,
stored, or disposed of without following the procedures outlined.
AUTHORITY:
1. The City Manager is responsible for the orderly disposition of surplus property.
2. The City Manager may designate a staff member to authorize disposition of surplus property.
3. The City Manager has authority to set work rules and require all employees to agree to and
follow this policy per Chapter III, Sections 6 and 7 of the City Charter.
VIOLATIONS:
Any employee of the City of Muskegon who violates the provisions of this policy may be subject
to disciplinary action up to and including dismissal.
AMENDMENTS:
Any amendments to this policy will be submitted to the City Manager or designee.
Document edit notes
Action Person Date Change
New L. Mikesell 3-7-24 New policy