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HomeMy WebLinkAboutRES 2022-099RESOLUTION NO. 2022-99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AUTHORIZING THE CITY MANAGER TO IMPLEMENT SELECT FINANCIAL POLICIES WHEREAS, the City desires to ensure that there is sufficient internal controls over its financial operations; and WHEREAS, the City desires to ensure that City-owned property is properly accounted for, safeguarded, and properly disposed of; and WHEREAS, the City desires to formalize its finance policies; and WHEREAS, the City Council have been presented with draft Polic ies in the form attached to this Resolution as Exhibit “A” and by this reference incorporated herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. The City Manager is hereby authorized to establish and periodically review and update finance policies. Section 3. The attached policies shall be added to the Administrative Procedures as Policies No. FIN-008 Capital and Inventoriable Assets Management, FIN-009 Disposal of Surplus Property and Equipment, and FIN-010 Furniture Procurement Policy and Procedures. Section 4. This Resolution shall take effect immediately upon adoption with an effective date of July 1, 2022. ADOPTED ON DECEMBER 15, 2022. KATHLEEN KELLY MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK Kathleen Kelly (Dec 22, 2022 12:08 PST) Kathleen Kelly Anthony Mejia (Dec 22, 2022 12:21 PST) Resolution No. 2022-99 Page 2 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2022-99 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on December 15, 2022, by the following vote: AYES: HARNIK, NESTANDE, QUINTANILLA, TRUBEE, AND KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _____________________. ANTHONY J. MEJIA CITY CLERK Anthony Mejia (Dec 22, 2022 12:21 PST) Dec 22, 2022 CITY OF PALM DESERT ADMINISTRATIVE PROCEDURES Subject Capital and Inventoriable Assets Management Policy No. FIN-008 Date Issued: December 15, 2022 Amended: N/A Approved by Resolution No. 2022-99 approving updated finance policies Authored by Finance Department I. PURPOSE As pertains to the City of Palm Desert, the City of Palm Desert Housing Authority, the Successor Agency to the Palm Desert Redevelopment Agency, any community facilities district, any community services district or any other agency affiliated with the City of Palm Desert, the purpose of this policy is to: A. Establish control and accountability measures to ensure careful and responsible management of municipal capital assets and inventoriable assets; B. Define eligible costs and establish thresholds for capitalization in conformity with Governmental Accounting Standards Board Statement No. 34 Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, Statement No. 51 Accounting and Financial Reporting for Intangible Capital Assets, and Statement No. 87 Leases; and C. To collect and maintain complete and accurate capital asset information required for preparation of financial statements in accordance with GAAP (generally accepted accounting principles). II. GENERAL POLICY Capital assets are broadly defined as financial resources that are tangible or intangible in nature and have a useful life greater than one year. Purchased, donated, or internally developed assets meeting the City's capitalization definition and threshold will be classified and recorded to the City's financial records as capital assets. Capital assets are to be accounted for at historical cost, or if cost is not practically determinable, at estimated fair market value at the time acquired or placed into service. Generally, cost includes all expenses associated with the acquisition, construction and installation of a capital asset. Administrative Procedures Manual FIN-008 Capital Assets Management Page 2 of 6 III. APPLICABILITY This policy applies to all City staff and its authorized agents, including the Housing Authority, the Successor Agency to the Palm Desert Redevelopment Agency (SARDA), the Desert Willow Golf Resort. IV. CAPITALIZATION In general, all capital assets, including land, building, machinery and equipment, with an acquisition cost of $10,000 or more and a useful life of at least three years, will be subject to capitalization. Specific capitalization requirements described below. The capitalization threshold is applied to individual units of capital assets. For example, fifteen desks purchased through a single purchase order each costing $1,000 will not qualify for capitalization even though the total cost of $15,000 exceeds the threshold of $10,000 whereas a truck purchased with several factory attachments/enhancements would be treated as a single capital asset. Exclusions to capitalization include repair and maintenance. Repair of assets keeps the property in good working condition, and as such, the costs of repair are charged to the appropriate department fund. Costs associated with software training, maintenance, and customer support are considered expenditures and will not be capitalized. Ongoing capital projects will be capitalized as "work in progress" until completed. Costs to be capitalized include direct costs, such as labor, materials, and transportation, indirect costs such as engineering and construction management, and ancillary costs such as construction period interest. Assets Purchased with Federal Funds: Capital assets purchased with federal funds shall conform to federal requirements for capital thresholds, inventory record-keeping, reporting, and other regulatory components. The value of any donated asset shall be determined by any industry-recognized method for the specific type of asset. V. MAJOR CAPITAL ASSET CLASSES A. Land – includes land under infrastructure and preparation costs. Costs can include acquisition prices and cost of initially preparing land for its intended use (basic site improvements, removal, excavation, relocation, reconstruction). Land usually has an indefinite useful life and is not depreciated. B. Buildings – permanent structures. Costs can include purchase of new building or cost of an improvement to an existing building. An entire building can be classified as one asset or be reported as separate capital assets if discrete portions of the building have significantly different useful lives (e.g. roof separate from building). C. Infrastructure – capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Administrative Procedures Manual FIN-008 Capital Assets Management Page 3 of 6 Examples include roads, bridges, tunnels, drainage systems, water and sewer systems, and lighting systems. D. Improvements Other than Buildings – permanent improvements (non-moveable), other than buildings that add value to land, but do not have an indefinite useful life. Examples include fences, retaining walls, parking lots, and landscaping. E. Equipment, Furniture & Vehicles – moveable assets that includes all costs to place equipment into service (freight, installation, warranties, and sales tax). Each piece of equipment must meet the minimum capitalization threshold and is not recorded in bulk. Examples include vehicles, furnishings, machinery, servers, and appliances. F. Intangible – assets that are not physical in nature. Generally, this includes software and easements (can also include trademarks). (a) Permanent Easements – intangible with an indefinite useful life and are not depreciated. (b) Temporary Easements – intangible without an indefinite useful life and are depreciated. Examples include temporary construction easements. (c) Software – internally developed, or pre-built products that have had extensive customization to allow for the City’s use. Does not apply to “software as a service” (SAAS) applications. G. Works of Art / Historical Treasures – collections or individual items of significance that are owned by a state agency which are not held for financial gain, but rather for public exhibition, education or research in furtherance of public service; and are protected and cared for or preserved and subject to an organizational policy that requires the proceeds from sales of collection items to be used to acquire other items for collections. Administrative Procedures Manual FIN-008 Capital Assets Management Page 4 of 6 VI. CAPITALIZATION THRESHOLD AND USEFUL LIFE Asset Type Capitalization Threshold Useful Life Subject to Depreciation? Land $ 0 Infinite No Buildings $ 100,000 20-50 Years Yes Infrastructure $ 100,000 10-50 Years Yes Improvements other than Buildings $ 100,000 20-50 Years Yes Equipment, Furniture, & Vehicles $ 10,000 3-15 Years Yes Intangible Assets – Permanent Easements $ 10,000 Infinite No Temporary Easements $ 10,000 5 Years Yes City-Owned or Developed Software $ 100,000 5 Years Yes Works of Art / Historical Treasures $ 10,000 Infinite No Construction in Progress $ 0 N/A No CAPITAL ASSET INVENTORY Inventory records shall be maintained for all capital assets. A physical inventory of capital assets shall be conducted no less than every five (5) years. Assets classified as infrastructure shall be exempt from physical inventory requirements. Inventory discrepancies shall be investigated and reconciled, and the asset records shall be updated upon reconciliation. VIII. DEPRECIATION METHOD Capital assets shall be depreciated using the “straight-line” method, in which the value of the asset is divided equally over the expected life of the asset. Depreciation is calculated from the date the asset is placed in service, rounded to the nearest full month. IX. MANAGEMENT OF INVENTORIABLE ASSETS Inventoriable assets (also termed “controlled capital-type assets”), are any assets determined to be in need of special attention to ensure legal compliance, protect public safety, avoid potential liability, or items with a heightened risk of theft. Classification of assets as inventoriable shall be at the determination of the Finance Director. Control and tracking of such assets is the responsibility of the cognizant department utilizing the asset(s) as part of their normal operations. Administrative Procedures Manual FIN-008 Capital Assets Management Page 5 of 6 Inventory lists should be completed no less than every two years. Reconciled inventories are to be certified to the Finance department as to the accuracy and completeness of the inventory records. X. DISPOSAL Capital and inventoriable assets identified as surplus by either the City Manager or City Council must follow the disposal procedures identified in Administrative Policy No. FIN-009 Disposal of Surplus Property and Equipment, Section V. XI. NO WARRANTY; HOLD HARMLESS AND INDEMNIFICATION All transfers of surplus personal property via any of the disposal methods set forth in this policy shall be without warranty, express or implied, and the new owner(s) shall agree to defend, indemnify and hold harmless the City, its officers and employees, from any claim, cause of action, damage, loss of liability arising out of the condition of the surplus personal property or its use by the new owner(s) or subsequent owner(s). XII. CONFIDENTIALITY Any information contained in any surplus personal property that is deemed confidential or proprietary by the City shall not be subject to a transfer of ownership along with any surplus personal property. The City reserves the right to require such information to be returned to the City, destroyed or not be duplicated or distributed. XIII. DEFINITIONS Capital Asset: Non-financial assets that are used in operations and have an initial useful life in excess of one year. Capitalization Threshold: The minimum cost which an asset must exceed in order to be capitalized. CIP (Capital Improvement Project): Any expenditure for the purchase, construction, replacement, addition or major repair of public facilities and major equipment. City: The City of Palm Desert, the City of Palm Desert Housing Authority, the Palm Desert Public Library, the Successor Agency to the Palm Desert Redevelopment Agency, any community facilities district, any community services district or any other agency affiliated with the City of Palm Desert. City Council: Shall mean the City Council, Housing Authority Board, Library Board, or Successor Agency to the Palm Desert Redevelopment Agency Board, or board of any community services district or community facilities district, as appropriate. Administrative Procedures Manual FIN-008 Capital Assets Management Page 6 of 6 City Manager: Shall mean the City Manager, Housing Authority Executive Director, Library Executive Director, or Successor Agency to the Palm Desert Redevelopment Agency Executive Director, or head of any community services district or community facilities district, as appropriate, or his or her designee. Controlled Capital-Type Items: Items that require special attention to ensure legal compliance, protect public safety, avoid potential liability, or items with a heightened risk of theft. Also referred to “inventoriable assets.” Depreciation: The process of allocating the cost of an asset over a period of time, usually its estimated life. Intangible Assets: An asset that is not physical in nature. Inventoriable Assets: Items that require special attention to ensure legal compliance, protect public safety, avoid potential liability, or items with a heightened risk of theft. Also referred to “controlled capital-type items.” Personal Property: Equipment, furniture and vehicles, and intangible assets - software. Real Property: Land and land improvements, buildings and building improvements, infrastructure, improvements other than buildings, intangible assets - permanent and temporary easements, works of art / historical treasures, and construction in progress. Tangible Assets: An asset that has a physical form. Useful Life: The amount of time that an asset is expected to provide benefit. CITY OF PALM DESERT ADMINISTRATIVE PROCEDURES Subject Disposal of Surplus Property and Equipment Policy No. FIN-009 Date Issued: December 15, 2022 Amended: N/A Approved by Resolution No. 2022-99 approving updated finance policies Authored by Finance Department I. PURPOSE The City is committed to managing surplus property, such as used furniture and equipment, in a manner that is fiscally responsible, reduces harmful environmental impacts, and promotes the City’s reduce-reuse-recycle philosophy. This policy explains the process including the physical removal, transportation, sale, donation, disposal and\or the ultimate disposition of all surplus property. This policy also addresses disposition of vehicles and other movable equipment. II. GENERAL POLICY Property and materials that are purchased with City funds or with grant funds, donated to the City, or acquired for the City through other means, are the property of the City and do not belong to specific individuals. The City will dispose of its surplus property in an environmentally and fiscally responsible manner in accordance with local, state, and federal regulations. A department or individual may not dispose of property unilaterally. Disposal of City property for personal gain or favor is prohibited. The City Council, the City Manager or his/her designee are responsible for disposal approvals as defined by this policy. III. APPLICABILITY This policy applies to all City staff and its authorized agents, including the Housing Authority, the Successor Agency to the Palm Desert Redevelopment Agency (SARDA), the Desert Willow Golf Resort. IV. DECLARING SURPLUS PROPERTY a) Definition of Surplus Property Administrative Procedures Manual FIN-009 Disposal of Surplus Property and Equipment Page 2 of 6 Surplus property may be defined as 1) personal property not needed for City service or not fit for its intended purpose; 2) usable material, equipment, or parts, including capitalized equipment, that exceed the normal maintenance, repair, and operating requirements of a department; 3) obsolete material and equipment that cannot be used in the service for which it was purchase and cannot be utilized safely or economically for any other purpose; 4) scrap metal and waste material such as paper, rags, rubber, and wood; 5) property recovered, found, and unclaimed by any department. b) Declaration of Surplus Property The City Council, City Manager or his/her designee may declare items as surplus in accordance with the guidelines set forth in this policy. Usable property should first be offered to other departments of the City, prior to any request to declare the property as surplus. Department Directors may request that property that is no longer useful to their department be declared as “surplus.” The request must include a description, photos, and location of items. The department making the request must ensure that all items are empty of contents (e.g., paper files and personal belongings). c) Assets with Estimated Residual Value Greater than $5,000 Assets with an estimated residual value $5,000 or greater will require an action by the City Council to declare the property as surplus. Residual value may be determined by any reasonable method commonly used to value a specific asset. The request to surplus must include the same information as Item “a” above in addition to; Inventory Asset Tag Number, location and description of the item, as well as any and all recommendations for disposal (i.e. donate, recycle, auction, etc.). V. DISPOSAL A. Determination of Personal Property If any department head determines that any personal property or other inventoriable assets of the City under the jurisdiction or control of the department with an estimated residual value under $5,000 that is not needed or suitable for further public use, the respective department head shall notify the City Manager that such personal property is "surplus." With the City Manager’s approval, the property may be disposed of in compliance with this policy. B. Disposal of Personal Property Surplus property as defined in Section V(A) in any manner the City Manager deems appropriate and in the best interest of the City, including without limitation transferring the subject property to another City department for use by that department. Administrative Procedures Manual FIN-009 Disposal of Surplus Property and Equipment Page 3 of 6 The City Manager may dispose of surplus personal property in any of the following methods, in preferential order: • Trade-in for replacement asset • Donation to another public agency • Donation to a bona fide non-profit, in good standing with all applicable laws and regulations that serve the community of Palm Desert • Sale in accordance with Section VI • Exchange for other personal property • Exchange for services • Recycle • Disposal as waste • Destruction C. Disposal of Capital Assets Surplus Capital assets other than real property as defined in policy number FIN-008 must be brought before the City Council for authorization for disposal. The City Council may authorize the disposal of surplus capital assets in any of the following methods, in preferential order: • Trade-in for replacement asset • Donation to another public agency • Donation to a bona fide non-profit, in good standing with all applicable laws and regulations that serve the community of Palm Desert • Sale in accordance with Section VI • Exchange for other personal property • Exchange for services • Recycle • Disposal as waste • Destruction D. Determination of Real Property If any department head determines that any real property of the City under the jurisdiction or control of the department is not needed or suitable for further public use, the respective department head shall notify the City Manager that such real property is deemed "surplus." Such surplus real property, however, must be deemed to be officially surplus by the City Council via Council Action, prior to its disposal pursuant to the provisions set forth in this policy. E. Disposal of Real Property Real property may be disposed of in accordance with applicable law on a case-by-case basis after consideration of all relevant factors and approval by City Council. Administrative Procedures Manual FIN-009 Disposal of Surplus Property and Equipment Page 4 of 6 If the City Manager determines that real property, owned by the City, Housing Authority or SARDA, is no longer necessary for City purposes then the City shall initiate the process to include said property on the City’s “central inventory” under the Surplus Land Act (SLA). Said property will then be disposed of in accordance with City policy related to the disposition of SLA properties. VI. DISPOSITION OF SURPLUS PROPERTY Items may be disposed of in any manner described in Sections V(B) and V(C) . Items sold at the direction of the City Council or City Manager will be sold via public sales, sealed bids or online auctions. Any sale method used must adhere to an open and fair public process. Direct negotiated sales may occur only if a public sale has failed to produce a buyer, or if the cost of conducting the sale outweighs the financial benefit. Revenue from the sale of surplus property will be returned to the appropriate revenue fund. With prior approval by the City Manager or designee, a Department may donate surplus property directly to a non-profit organization. The Finance Director must approve the donation of movable equipment and motor vehicles and be provided with proof of the 501(c)(3) status of recipient. A receipt shall be issued for all sales. City employees are eligible to purchase surplus property offered at public sale. All transactions, including the collection of appropriate taxes and issuance of a sales receipt, must be conducted by the Finance Department or contracted auction vendor. In the case of computing devices, the IT department must ensure that the memory is erased and the operating system (or current version, if appropriately licensed) is reinstalled prior to sale. Valuation of surplus computing devices for the purpose of sale is at the sole discretion of the IT Department Manager. Under no circumstances shall a City department sell surplus property directly to an individual or employee, except as noted in Section VI. All sales are subject to State of California sales tax unless proof of Sales Tax Exemption Status is provided by the purchaser. All sales are in checks payable to the City of Palm Desert. For any City-managed auction, sales exceeding $5,000, a certified or cashier’s check payable to the City of Palm Desert is required. VII. UNIQUE ITEMS AND ITEMS OF HIGH RESALE VALUE Departments in custody of City-owned items that are considered “unique” (e.g., musical instruments, athletic uniforms, sports equipment, police equipment, artwork, historical treasures, etc.) may be granted permission by the Director of Finance to sell items on their own, with prior written approval of the City Council or the City Manager, as appropriate under the guidance provided in Section VI. In these instances, the Department Director is responsible for all aspects of the sale including advertising, invoicing, collection of appropriate sales tax, issuance of a sales receipt, and deposit of the proceeds in appropriate City accounts. Administrative Procedures Manual FIN-009 Disposal of Surplus Property and Equipment Page 5 of 6 VIII. ANTI-SCAVENGING Unauthorized removal, disposal, or expropriation of City Property or Surplus Property is considered theft and constitutes a serious breach of City policy. Unauthorized disposition could subject individuals to disciplinary action, including but not limited to dismissal, or criminal prosecution. IX. ABANDONED PROPERTY If an item is identified by the City Manager as abandoned, the Director of Finance may take possession of the item and designate it as surplus. A 30-day waiting period applies after which abandoned items may be donated or sold in accordance with the procedures identified in Section V. X. NO WARRANTY; HOLD HARMLESS AND INDEMNIFICATION All transfers of surplus personal property via any of the disposal methods set forth in this policy shall be without warranty, express or implied, and the new owner(s) shall agree to defend, indemnify and hold harmless the City, its officers and employees, from any claim, cause of action, damage, loss of liability arising out of the condition of the surplus personal property or its use by the new owner(s) or subsequent owner(s). Documentation of this agreement shall be obtained prior to the transfer of any property. XI. CONFIDENTIALITY Any information contained in any surplus personal property that is deemed confidential or proprietary by the City shall not be subject to a transfer of ownership along with any surplus personal property. The City reserves the right to require such information to be returned to the City, destroyed or not be duplicated or distributed. XII. DEFINITIONS Abandoned Property: Any equipment or materials left unclaimed and identified for disposal. Capital Asset (Non-Real Property): Non-financial assets that are used in operations and have an initial cost meeting the capitalization threshold as defined in Policy FIN-008. Computing Devices: Machines used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or “peripherals”) for printing, transmitting and receiving, or storing electronic information. Inventoriable Assets: Items that require special attention to ensure legal compliance, protect public safety, avoid potential liability, or items with a heightened risk of theft. Also referred to “controlled capital-type items.” Administrative Procedures Manual FIN-009 Disposal of Surplus Property and Equipment Page 6 of 6 Movable Equipment: Tangible, non-expendable, personal property that has an anticipated useful life of three (3) years or more with an acquisition cost meeting the City’s capitalization threshold as defined in Policy FIN-008 or with an estimated residual value $5,000 or greater. Personal Property: Equipment, furniture and vehicles, and intangible assets - software. Real Property: Land and land improvements, buildings and building improvements, infrastructure, improvements other than buildings, intangible assets - permanent and temporary easements, works of art / historical treasures, and construction in progress. Residual Value: The estimated value of an asset at the end of its useful life. Also referred to as salvage value. Surplus Property: Any equipment, furniture, scrap or salvaged materials, or other tangible property that is no longer needed by the City, regardless of its existing condition or estimated value. City Property: Any property or materials purchased with City funds or with grant funds, donated to the City, or acquired for the City through other means. I. PURPOSE This policy provides guidance on the standards and procedures governing the selection, acquisition, installation, and use of office furniture at the City of Palm Desert. It sets out the main principles, rules, and procedures regarding the procurement and management of furniture necessary to create a productive working environment. II. GENERAL POLICY City of Palm Desert maintains a set of standard office furniture options to facilitate the efficient, cost-effective, and timely acquisition and installation of office furniture used by employees and affiliates. The use of standard office furniture allows the City of Palm Desert to respond to the needs of diverse users and adapt to a wide range of space constraints. III. APPLICABILITY This policy applies to all office furniture purchased and used by the City of Palm Desert staff and affiliates in City of Palm Desert occupied space, regardless of location or funding source IV. CRITERIA Office Furniture acquired by staff should meet the following criteria:  Functional - Support the office activities of most end users for the intended purpose  Adjustable - Adjusts to accommodate the individual needs of 90 to 95% of end users  Flexible - Capable of being reused in varying configurations and locations  Modular - Standard modular sizes/shapes can be inventoried and quickly deployed CITY OF PALM DESERT Subject Furniture Procurement Policy and Procedures Policy No. FIN-010 Date Issued: December 15, 2022 Approved by Resolution No. 2022-99 approving updated finance policies Authored by Finance Department Furniture Procurement Policy and Procedures Page 2 of 4  Durable - Reliable and requires minimal maintenance and/or repair  Cost Effective – Ensures an optimal return on investment over the life of the item  Available – Readily procurable and delivered within standard timeline  Safe – Meets furniture fire code standards, does not pose physical risks to occupants. Office furniture covered by this policy is defined as a City of Palm Desert tangible asset and includes but is not limited to the following items: work surfaces or desks in offices and cubicles, filing cabinets, cubicle panels, office seating, storage, book shelving, and conference tables and chairs. V. ROLES AND RESPONSIBILITIES The Public Works Department is the authority for the City of Palm Desert’s Furniture design and specification standards. The Finance Department is responsible for the organization and administration of centralized furniture purchasing services. Risk Management is responsible for managing ergonomic reviews or accommodations requests. Departments are directly responsible for planning and submitting new furniture purchase requests to the Director of Public Works or designee for the Operations and Maintenance Division during the City’s Annual Fiscal Year Budget Process to ensure the availability of funds. The Director of Public Works or designee is responsible to contact the requesting department to plan and coordinate furniture purchases, and to ensure funding is available for the new furniture purchase requests and for furniture that has exceeded its useful life. VI. FURNITURE PROCUREMENT REQUEST PROCEDURES 1. Furniture will be procured furniture based on the following:  Available funding and in accordance with the City of Palm Desert Purchasing Policy and Procedures, Chapter 3.30.  To meet standards for functionality, durability, safety, finish, size, interchangeability, ergonomic design and optimal space utilization. 2. Replacement of furniture will be based on a priority, life cycle, and/or availability of funds. The Operations and Maintenance Division will be responsible for evaluating furniture condition and determining eligibility for replacement. Furniture Procurement Policy and Procedures Page 3 of 4 3. Furniture replacement requests are submitted through the Furniture Approval Form within the City’s electronic work order system. It is the City’s intention to standardize around a limited number of brand and styles of furniture. Furniture replacement will be based on the following criteria:  New furniture is required as a result of an ADA accommodation.  Furniture is unable to meet the needs of an employee with a demonstrated and documented ergonomic need or to make a reasonable accommodation.  Furniture is considered damaged or worn beyond reasonable repair.  When new positions and offices are created or modified.  Furniture is rendered obsolete or unable to perform to a newly established standard.  New furniture in generally included in the scope of new construction projects or major renovations. Furniture included in the scope of construction projects must adhere to standards established by the Public Works Department. Furniture Request Procedure 1. Requests will be considered based on priority, date of request, and funding availability. 2. Discretionary requests by departments for replacement furniture should be included in the annual budget cycle. Other requests will be considered on a case-by-case basis and prioritized according to 3. All requests must include prior approval(s) from the appropriate authority. 4. Requests will be reviewed by the Operations & Maintenance Services Division and a site visit with the requesting department will be arranged to gain a better understanding of the scope of work. 5. Recommendations will be made based upon a review of information provided on the Furniture Approval Form and the site visit. Factors to be considered include functionality, availability, pricing, and sustainability. 6. Once the scope of work is determined, the Operations & Maintenance Services Division will arrange a site visit with the selected vendor to measure space and confer with the requesting department. Furniture Procurement Policy and Procedures Page 4 of 4 7. The Operations & Maintenance Services Division will request approval of purchase through the City’s electronic Purchasing Approval Form for requests less than or equal to $50,000 and create a purchase order based on available funding. The Operations & Maintenance Services Division will coordinate delivery and installation and process payments for selected vendor. 8. For requests above $50,000, the Operations & Maintenance Services Division will coordinate the creation of a staff report with the requesting department to be submitted for City Council approval. Upon approval, the Operations & Maintenance Services Division will create a purchase order, coordinate delivery and installation of furniture, and process payments for selected vendor. Removal of Used Furniture: 1. All requests to move or dispose of any piece of furniture (including historical), should be made to the Operations & Maintenance Services Division through the City’s electronic Work Order System. Only the Operations & Maintenance Services Division will decide if the furniture is to be moved to storage or be disposed of according to Policy FIN-009 Disposal of Surplus Property and Equipment. Furniture placed in storage will available to any department. 2. Any department can request used furniture from storage by submitting a request to the Operations & Maintenance Services Division through the City’s electronic Work Order system. If available, the Operations & Maintenance Services Division will coordinate the relocation of the furniture. 3. If an individual desires to move, or a department wants an individual to move, from one office to another and/or requires additional furniture, the requesting department is responsible for submitting a request to the Operations & Maintenance Services Division through the City’s electronic Work Order System for the additional furniture. The Operations & Maintenance Services Division will make furniture recommendations based on availability and funding. VII. RECORDKEEPING REQUIREMENTS Asset records shall be kept in accordance with the current standards of Policy FIN-008 and in coordination with the Operations & Maintenance Services Division. Asset tags will be issued when items meet the capitalization threshold designated in Policy FIN- 008 by the Finance Department in coordination with the Operations & Maintenance Services Division.