BYRON SHIRE COUNCIL

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 13.4 - Attachment 1

 

 

 

 

 

 

 

 

 

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BYRON SHIRE COUNCIL

 

 

 

DRAFT POLICY

 

 

DISPOSAL OF ASSETS

 

 

 

 

 

 

 

 

 

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BYRON SHIRE COUNCIL

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 13.4 - Attachment 1

INFORMATION ABOUT THIS DOCUMENT

 

Date Adopted by Council

 

Resolution No.

 

Policy Responsibility

 

Review Timeframe

 

Last Review Date:

 

Next Scheduled Review Date

 

 

Document History

Doc No.

Date Amended

Details Comments eg Resolution No.

 

 

 

 

Further Document Information and Relationships

Related Legislation*

Local Government Act

Related Policies

Mayor and Councillors Payment of Expenses and Provision of Facilities

Procurement and Purchasing Policy

Related Procedures/ Protocols, Statements, documents

 

Note: Any reference to Legislation will be updated in the Policy as required. See website http://www.legislation.nsw.gov.au/ for current Acts, Regulations and Environmental Planning Instruments.

 


BYRON SHIRE COUNCIL

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 13.4 - Attachment 1

 

TABLE OF CONTENTS

 

1.††††† OBJECTIVES............................................................................................................................... 1

2.††††† POLICY STATEMENT................................................................................................................. 1

3.††††† DISPOSAL OF ASSETS.............................................................................................................. 2

4.††††† RECORDS................................................................................................................................... 2

5.††††† ASSET DISPOSAL FLOWCHART.............................................................................................. 2

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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BYRON SHIRE COUNCIL

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 13.4 - Attachment 1

 

Policy No. ??

 

POLICY TITLE

DISPOSAL OF ASSETS

 

 

1.†† OBJECTIVES

1.1. Purpose

 

To provide a systematic, transparent and accountable method for the disposal of Council-owned assets in accordance with Councilís Code of Conduct, Council Policies and all appropriate legislation and accounting standards.

 

1.2. Definitions

 

Asset

Any physical item that the Council owns.

Asset Value

The approximate value of the asset in its current condition.

Manager of the Asset

The Manager responsible for the asset.

Unserviceable Assets

Assets which are worn out or broken and no longer able to be used for the purpose for which they are intended

Land

Freehold land owned by Council

Buildings

Buildings on freehold land owned by Council.

 

1.3. Scope

 

This policy covers all physical Assets owned by Council except for Land and Buildings.

 

This policy excludes:

∑††† Disposal of goods which are not owned by Council;

∑††† Disposal via sale or donation of any item that poses a threat of physical or environmental harm;

∑††† Disposal of Unserviceable Assets †(these are regarded as waste)

 

Equipment provided to the Mayor or Councillors under the Mayor and Councillors Payment of Expenses and Provision of Facilities Policy may be purchased by the Mayor or Councillor in accordance with that policy.

 

2.†† POLICY STATEMENT

 

2.1. Overview

 

This policy gives direction for the decommissioning and disposal of Council-owned Assets. It covers Councilís requirements and obligations in the disposal process and will inform the Manager of the Asset of their responsibilities in the disposal process.

 

This policy:

∑††† Defines the methods by which Assets are to be disposed of;

∑††† Demonstrates Councilís accountability and responsibility to ratepayers;

∑††† Seeks to be fair and equitable to all parties involved;

∑††† Enables all processes to be monitored and recorded;

∑††† Seeks to ensure probity, accountability and transparency in all disposal processes;

∑††† Seeks to ensure the best outcome is achieved for Council; and

∑††† Applies to all Council officers and Councillors.

 

2.2. Policy Principles

 

Council must have regard to the following principles when disposing of its Assets:

∑††† Open and effective competition

∑††† Obtaining best value for money. This is not restricted to price alone and must include consideration of

o† The contribution to Councilís long term financial and strategic management goals;

o† Any relevant direct or indirect benefits to Council, both tangible and intangible;

o† Efficiency and effectiveness;

o† The costs of various disposal methods;

o† Internal administration costs;

o† Risk exposure; and

o† Value of any associated environmental benefits.

o† Councilís sustainability principles

 

Council is to behave with impartiality, fairness, independence, openness and integrity in all discussions and negotiations.

 

3.†† DISPOSAL OF ASSETS

 

3.1. Considerations prior to the decision to dispose

 

Before any Asset is disposed of, the relevant Manager of the Asset should ensure that disposal is appropriate and must consider the following, where applicable:

∑††† The usefulness of the Asset

∑††† The current market value of the Asset

∑††† The annual cost of maintenance of the Asset

∑††† Any alternative use of the Asset

∑††† Any duplication of the Asset or the service provided by the Asset

∑††† Any impact the disposal of the Asset may have on the community

∑††† Any cultural or historical significance of the Asset

∑††† The impacts (positive or negative) the disposal of the Asset may have on Councilís operations

∑††† Councilís long term plans and strategic direction

∑††† The remaining useful life of the Asset

∑††† The results of any community consultation

∑††† Any restrictions on the proposed disposal

∑††† Any other relevant Council policies or legislative requirements

 

3.2. Disposal Methods

 

It is the responsibility of the Manager of the Asset to select, in accordance with this Policy, the most appropriate disposal method. Authorisation of the disposal method must be in accordance with section 3.4 below.

 

The following disposal methods may be utilised:

∑††† Trading in equipment to suppliers

∑††† Seeking expressions of interest from potential buyers

∑††† Seeking bids through an open tender

∑††† Public auction eg Grays Online

∑††† Destroy and dump

∑††† Sale via Byron Resource Recovery Centre Second Hand Shop or library books via the RTRL libraries

∑††† Donation to a non-profit organisation.

 

Selection of a suitable disposal method will include consideration of the following factors:

∑††† The public demand and interest in the item

∑††† The method most likely to return the highest revenue

∑††† The value of the Asset

∑††† The costs of the disposal method compared to the expected returns

∑††† Compliance with statutory and other obligations.

 

Councillors and Council employees are not permitted to purchase Assets unless the purchase is via one of the following:

∑††† Open tender process

∑††† Public auction

∑††† Purchase from the Second Hand Shop at the advertised price.

∑††† Purchase from a RTRL library at the advertised price.

∑††† In accordance with the Mayor and Councillors Payment of Expenses and Provision of Facilities Policy.

 

3.3. Requirements for Donation of Assets

 

Donations of surplus or redundant Assets may only be made with the authority of a member of the Executive Team or a Council resolution and only after exploring all avenues for recouping a fair value for the Council or any alternative use within Council.

 

In considering any request for donations of Assets, Council staff should keep in mind the following;

∑††† Community groups should receive equitable treatment to avoid possible claims of bias;

∑††† A check should be made to ensure the community group is not a disguised business operation providing funds or remuneration to the principals.

∑††† A check should be made to ensure that the group is not-for-profit and that the intended use of the Asset is non-commercial.

∑††† Where the donation is seen as appropriate but there is a potential claim of bias, the matter should be referred to the Director of the Asset Manager;

∑††† The community group must remove the Asset themselves and at no cost to Council.

 

3.4. Authority to dispose of assets

 

Written approval of the Asset disposal method must be obtained by an officer with the delegation to dispose of the Asset:

 

Additionally, the following requirements apply:

∑††† Disposal of all Assets with a value over $150,000 must be by public tender unless resolved otherwise by a meeting of the Council.

∑††† Only Assets with a value of less than $1,000 can be sold via Councilís Second Hand Shop or libraries.

∑††† All donations must be approved by a Director, or if valued between $50,000 and $150,000, by the General Manager. Assets with a value of $150,000 or more cannot be donated.

 

If there is any doubt about the value of the Asset, consideration should be given to obtaining an independent valuation.


 

3.5. Preparing Assets for Disposal

 

Prior to disposing of the Asset, the Manager of the Asset must carry out a check to ensure the Asset does not contain any of the following:

∑††† Additional items not intended for sale

∑††† Confidential documents, records, files or papers, either physical or electronic

∑††† Documents on Council letterhead

∑††† Hazardous materials or substances

 

Any hard drives that have contained council-operated software must be physically destroyed.

 

Any Council logos must be removed or obliterated prior to disposal.

 

Spare parts held for an item that is to be disposed of should also be disposed of in one parcel with the Asset.

 

3.6. Buyerís Risk

 

Irrespective of the disposal method applied, all prospective buyers must be advised in writing that items are disposed of with any faults, at the buyerís risk (ďas is where isĒ). Buyers are to rely on their own investigations regarding the condition and function of the items and Council will not be held responsible for any repairs or maintenance of the Asset.

 

Purchasers or donation recipients of Assets must be required to agree in writing that before the purchase or receipt of any Asset that no warranty is given or implied by the Council in respect of the suitability and condition of the Asset for the purchaser or recipient and that Council will not be responsible for the Asset in any respect following the sale.

 

3.7. Notifying Disposal of Assets

 

If the Asset is registered on Councilís Asset Register, immediately following the disposal of the Asset it is the responsibility of the Manager of the Asset to notify the relevant manager to have the Asset Register updated to ensure the register is updated within three working days.

 

4.†† RECORDS

All records associated with disposal of the Asset, including reasons for utilising a specific disposal method must be stored in Councilís electronic records management system.

 

The following records must be retained:

∑††† Decision to dispose of the Asset

∑††† Asset value including any independent asset valuation records

∑††† Who approved disposal of the Asset

∑††† Method of disposal utilised.

5.††
ASSET DISPOSAL FLOWCHART