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SECTION 3.2

CAPITAL ASSETS

§3.2-101 Definition

(1) Capital Assets are tangible property costing $5,000 or more per unit, including tax, delivery and
installation, with a useful life expectancy exceeding one year. The Auditor-Controller is
responsible for setting the Capital Asset amount and making a Capital Asset determination on
questionable items.

§3.2-102 Used Equipment

(1) If opportunities arise to purchase used equipment, such equipment may be purchased without
competitive bidding, provided all the following conditions are met:
a) The equipment being sold is under warranty or, in the case of an “as-is, where-is” purchase,
there is an inspection by a qualified party who certifies that the condition of the item is
acceptable and adequate for efficient County use.
b) The dealer of the equipment is qualified reputable dealer as verified through reference
checks, or the equipment is being purchased from another governmental entity.
c) The selling price of the equipment is less than $100,000, including tax, installation, freight,
applicable training, etc.
(2) Justification for the Sole Source purchase of used equipment must be documented and maintained
as part of the procurement file.
(3) The purchase of used equipment is not a way to avoid the competitive bidding process for the
acquisition of new equipment.

§3.2-103 Board Approval

(1) Unbudgeted Capital Assets:
a) Approval of the Board of Supervisors is required prior to the purchase of unbudgeted
Capital Assets which cost more than $50,000 each.
(2) Budgeted Capital Assets:
a) Budgeted Capital Assets within the budgeted amount approved by the Board require no
further Board approval prior to purchase.
b) Board approval is required for budgeted Capital Assets when the cost exceeds the budgeted
amount by more than 10% or $100,000, whichever is less.
(3) Sole Source Capital Assets:
a) Approval by the Board of Supervisors is required prior to the purchase of a Sole Source
Capital Asset costing more than $75,000. Purchases may not be intentionally Sole Sourced
to avoid the bidding requirements contained in this manual. For additional rules and
guidelines, refer to Section 4.5 of this manual.

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