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Resolution No. 2023-052RS. CITY OF CLERMONT C� RESOLUTION NO.2023-052R Cbwvxm A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA AMENDING THE PROPERTY CONTROL POLICY FOR THE CITY OF CLERMONT; PROVIDING FOR CONFLICT, SEVERABILITY, ADMINISTRATIVE CORRECTION OF SCRIVENERS ERROR, PUBLICATION AND AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Clermont deems it advisable and in the best interest of the City, to amend the Property Control Policy; NOW, THEREFORE, BE IT RESOLVED, that the City of Clermont Property Control Policy is hereby amended as follows: SECTION 1. The City Council does hereby adopt the City of Clermont Property Control Policy as set forth in Attachment A, attached hereto and incorporated herein. The City Council of the City of Clermont may amend the Property Control Policy by Resolution when deemed necessary and in the best interest of the City of Clermont. SECTION 2: CONFLICT All resolutions or parts of resolutions in conflict with any of the provisions of this Resolution are hereby repealed. SECTION 3: SEVERABILITY If any portion of this Resolution is declared invalid, the invalidated portion shall be severed from the remainder of the Resolution, and the remainder of the Resolution shall continue in full force and effect as if enacted without the invalidated portion, except in cases where such continued validity of the remainder would clearly and without doubt contradict or frustrate the intent of the Resolution as a whole. SECTION 4: ADMINISTRATIVE CORRECTION This Resolution may be re -numbered or re -lettered, and/or corrected for typographical and/or scrivener's errors which do not affect the intent of said resolution, as authorized by the City Manager or designee, without need of public hearing, by filing a corrected copy of same with the City Clerk. SECTION 5: PUBLICATION AND EFFECTIVE DATE This Resolution shall take effect immediately upon its adoption. d' CLERWONT CITY OF CLERMONT ; RESOLUTION NO.2023-052R DONE AND RESOLVED by the City Council of the City of Clermont, Lake County, .Florida this 12th day of December, 2023. CITY OF CLERMONT Tim Murry,ll%iayor ATTEST: jtq-1-'-Aj - ) Tracy Ackroyd Howe, MMC City Clerk Approved as to form and legality: nF.7 - - Attachment A Property Control Policy ALE %.I IVIVU VI `.1 lal I Iplul IJ City of Clermont, Florida Rev. 11 /30/23 Table of Contents A. Purpose................................................................................................................. 3 B. Scope.....................................................................................................................3 C. Responsibilities......................................................................................................3 D. Physical Inventory ..................................................................................................3 E. Lost & Stolen Property...........................................................................................4 F. Property Identification............................................................................................ 4 G. Property Control System........................................................................................ 5 H. Property Acquisition............................................................................................... 5 1. Cost of Property.................................................................................................... 6 2. Property Donations...............................................................................................6 3. Creating A New Property From Parts................................................................... 6 I. Property Transfers................................................................................................. 7 J. Property Disposition...............................................................................................7 K. Authority.................................................................................................................7 2 Rev. 11 /30/23 A. Purpose This Policy aims to establish procedural guidelines for the management control and continuing accountability of city -owned tangible and intangible personal property. This Policy will provide information on how to account for its acquisition, safeguarding, and final disposition in accordance with Chapter 274.02, Florida Statutes, and the Florida Administrative Code Rules 691-73. B. Scope This Policy applies to all city -owned tangible and intangible personal property with a value or cost of $5,000 or more and a projected useful life of one (1) year or more. Tangible personal property includes furniture, equipment, computers, printers, and vehicles. Intangible personal property includes software. C. Responsibilities The City's Procurement Services Department is responsible for establishing and maintaining the property control system. Department Directors are the official custodians of property items assigned to their departments and, as a result, are primarily responsible for the use, care, and safeguarding of property items assigned to their departments. Department Directors will appoint a designated Property Custodian for their department for the supervision, control, and accountability of city -owned property. Inventory must be taken annually and whenever a Property Custodian or designee changes. Departments are responsible for establishing and maintaining control systems to account for tangible personal property not covered by this Policy. D. Physical Inventory The City's Procurement Services Department Property Coordinator will perform the annual physical inventory with assistance from each department Property Custodian or designee. The Procurement Services Department will provide each department with an inventory list of all property items with a scheduled completion deadline. The list will include the property control number, property description, date acquired, class and sub- class, physical location, property tag number, serial number (if applicable), and department name. The Property Custodian or designee will verify the property listing with assistance from qualified individuals from each department. Each item listed will be marked either YES if found or NO if not found. If the item is not found, the department Property Custodian or designee must provide an explanation in writing. Property transferred between departments will be noted in the property control system. The transfer will be confirmed by the Purchasing Procurement Services Property Coordinator physically inspecting the property in its new location. 3 Rev. 11 /30/23 The Procurement Services Department Property Coordinator will perform a physical inventory of twenty percent (20%) of each department inventory each year during a five (5) year period. In the event that several items cannot be located, the Procurement Services Department Property Coordinator may determine to inventory all department items. Upon completing the physical inventory, the Procurement Services Department Property Coordinator will compare the information noted to the property control system. Reported differences will be researched and corrected as appropriate. Any property item found while conducting the physical inventory that meets the property value threshold noted in Section B and is not included in the property control system will be added to the City's inventory. A Property Acquisition Form must be completed and submitted to the Procurement Services Department. After appropriate research to establish the item's ownership, it will be added to the City's property records. E. Lost & Stolen Property Any property included in the inventory list and not located during the physical inventory process must be promptly reported to the Property Custodian. The department's Property Custodian must quickly report all lost or stolen property to the Clermont Police Department and the Procurement Services Department. The Property Custodian must provide a copy of the police report and the Property Disposal Form to the Procurement Services Department. The Procurement Services Department will submit a list of all reported missing items to the City Manager for review before obtaining approval from the City Council. Upon approval by the City Council, the property will be removed from the property control system. F. Property Identification The Procurement Services Department Property Coordinator will permanently mark all property as described in Section B with property tags to show ownership by the City and the tag number assigned to the property item. Once the Property Acquisition Form has been reviewed by the Finance Department and received by the Procurement Services Department, the Procurement Services Department Property Coordinator will schedule an appointment with the Department Property Custodian to tag the asset. Any property item whose value or utility would be significantly impaired by the attachment of a property tag, or it is not feasible or practical to attach a property tag, is exempt from the requirement for physical marking. In such instances, the property tag will be kept on file by the Procurement Services Department. Property tags should be plainly visible and easily accessible. Tags should be placed on the front of equipment that is not moved, such as computers and printers. On items that 4 Rev. 11 /30/23 are regularly moved, such as generators and mowers, the tag should be placed as close to the serial number as possible or where it is least likely to come off from wear and tear. The property control number assigned by the Procurement Services Department remains the same and will follow the asset's life until disposal. These property tags will be removed only when the item is approved as surplus by the City Council and disposed of by the Procurement Services Department. Should the property tag be removed or defaced, the Property Custodian must notify the Procurement Services Department to issue a replacement tag and update the property control system. G. Property Control System The property control system will include a control account showing all properties' total cost or value as described in Section B and a separate property record for each item. Each property record must include, as applicable, the following information: a. Property control number b. Description of the item or items c. Physical location d. Department/division e. Name, Make, or Manufacturer f. Year and/or Model g. Manufacturer's serial number(s), if any, and if an automobile, vehicle identification number (VIN) h. Date Acquired i. Cost j. Depreciation information k. Funding source I. Disposal date Depreciation may be recorded to meet financial reporting requirements relating to depreciation accounting. However, depreciation must not be recorded on the individual property records in such a manner as to reduce the recorded acquisition cost. H. Property Acquisition A Property Acquisition Form must be completed by the Property Custodian at the time of acquisition and submitted by email to propertycontrol@clermontfl.org. A purchase order and invoice must be attached to the form. The combined responsibility of the requisitioning department and Finance Department is to ensure that the invoice/purchase order is charged to the correct general ledger account code for all property items. The 5 Rev. 11 /30/23 Finance Department will review each property acquisition form before submitting it to the Procurement Services Department for entry into the property control system. The acquisition of new fixed assets must be recorded and entered into the property control system by the Procurement Services Department with the assistance of the Finance Department. New acquisitions must contain the following information in the Property Acquisition Form: • Contact person information; • Property location; • The employee assigned the property; • Property information to include: o The company purchased from; o Purchase order number; o Year/ make/model/manufacturer/brand; o Serial number; o City vehicle number; o The total cost of the property; o Date received; o Department account code; o Comprehensive description of the property; o Property alternate key (land). The Procurement Services Department will collect and verify the information before entering it into the property control system. 1. Cost of Propertv The cost recorded in the property control system is the total cost of placing the item in service (i.e., invoice price plus freight and installation charges less discounts). A trade-in value is not deducted from the cost of an item. 2. Property Donations Property donated to the City is recorded in the property control system at its fair market value at the date of donation. A letter from the donor that includes a description of the property and its value is recommended. 3. Creatinq A New Propertv From Parts Property created by assembling parts of several old items into a new one is considered cannibalizing. As described in Section B, the newly formed property will be recorded in the property control system if its cumulative value is over $5,000. The newly formed property will also be recorded if it qualifies as an improvement to an L Rev. 11 /30/23 existing property item. Any cannibalized property will be disposed of through the property disposal procedures noted in Section J. I. Property Transfers Property may be transferred between departments, thereby transferring ownership. However, property cannot be transferred from one department to another once the property has been declared surplus. The transferring Property Custodian is responsible for completing the Property Transfer Form and approval before the transfer. The completed transfer form must be submitted to the Procurement Services Department by email at propertycontrol@clermontfl.org. Once the property item has been physically transferred, the transfer will be recorded in the property control system by the Procurement Services Department Property Coordinator. A Property Transfer Form must also be completed when a property item is relocated within the same department (e.g., transfer from one division to another within the same department). J. Property Disposition All city -owned tangible personal property (including property not described in Section B) that no longer serves the needs of the City (e.g., broken, in need of repair, or no longer needed) may be removed from inventory records by declaring them as surplus. This includes lost and found property by the Police Department after a ninety (90) day period. A Property Disposal form must be completed and emailed to the Procurement Services Department at propertycontrol@clermontfl.org. The City Council must approve all surplus property, except for lost and found property, by the Police Department. Once approved by the City Council, the Procurement Services Director will have the authority to sell by auction or advertised bid, trade, donate to another governmental entity, destroy, or dispose of property declared surplus. Once the Procurement Services Department has disposed of the property item, it will be recorded in the property control system, and the form will be submitted to the Finance Department. Afterward, the property item will be retired from the property control system. K. Authority Approved and adopted by the Clermont City Council by Resolution Number 2023- 052R on December 12, 2023. 7 Rev. 11 /30/23