Surplus Sources

It's time to think about budgets, purchasing, and purging. Whether your city needs to post surplus property or is looking to buy, there are resources you may not have considered.

As city officials know, there are several ways and places to post surplus property. The Kentucky League of Cities (KLC) provides a surplus property page as a resource for cities to connect and dispose of surplus property. Cities that intend to dispose of surplus property can post the property description, asking price (if applicable), the date of intended disposal, and any other pertinent information. The service is free, and items are reviewed by KLC staff before posting. As a reminder, any disposed property must be declared surplus property pursuant to KRS 82.083. Please contact the KLC Municipal Law Department with questions or sample resolutions for declaring property surplus.

In addition to KLC's surplus page, cities can take advantage of purchasing through the Kentucky Division of Surplus Properties (DSP). The division administers the commonwealth's state and federal surplus programs and "receives and redistributes excess federal and state personal property in the most cost-efficient manner and in the best interest of the commonwealth's taxpayers." The Division offers a variety of products for eligible buyers, including office furniture, construction equipment and supplies, custodial and cleaning items, laboratory and computer equipment, and vehicles of all types, all of which may be purchased directly or bid on daily online.

Eligible organizations, including cities, have several resources for purchasing state and federal surplus through the Division of Surplus Properties. They may buy assets year-round directly from the Division of Surplus Properties' 60,000 sqft warehouse in Frankfort. Inventory is not posted online; however, official city representatives are welcome to call or stop by to browse the vehicle lot and warehouse.

• State surplus is available on location and is priced 10%-50% below the fair market value. Cities are also welcome to register and bid on state surplus items listed daily online. 
• Federal merchandise is available on location or through the federal PPMS system, where DSP may request specific federal items for cities, and all federal items are priced at 10%-50% of the original acquisition cost.

Cities may also purchase Kentucky Transportation Cabinet (KYTC) surplus equipment directly from the Division of Equipment before it is auctioned each fall. The Division of Equipment is located at 1234 Wilkinson Blvd in Frankfort. Inventory is not posted; however, cities are welcome to contact Shawn Mackie to schedule an appointment and browse the KYTC equipment yard.

Kentucky cities are also welcome to register and bid on any remaining equipment in the Annual KYTC Equipment Auction held each fall through The Logsdon Group. There are typically over 500 pieces of equipment available to be bid on.

Items include trucks, snowplows, tractors, mowers, parts, and other equipment from the Transportation Cabinet at deep discounts. For instance, according to KYTC Supervisor Shawn Mackie, a backhoe or skid steerer that could retail at more than $100,000 could cost between $35,000-40,000 in surplus.

Services provided by the Division of Surplus Properties also include administering auctions for eligible agencies, sealed bid sales, and direct transfer sales. The Division can receive, warehouse, and distribute federal surplus property under the provisions of the Federal Property and Administrative Services Act of 1949 (as amended) and may recondition surplus property for transfer to eligible state and local agencies and other eligible public entities. Additionally, DSP may receive surplus property from cities and other eligible donees.

Cities must have paperwork on file to purchase through the program. According to DSP, in a city manager form of government, the city manager would sign as the authorized official on all forms. In other forms of government, the mayor would be the authorized official. City officials are encouraged to check out available property by calling or stopping by the DSP warehouse and car lot at 999 Chenault Rd. in Frankfort or viewing daily auction items online.

There are several surplus options. The processes are not difficult or time-consuming. For more information on how cities can participate and benefit from the state's surplus property programs and auctions, contact:

Division of Surplus Property
502.564.7117
lissa.caldwell@ky.gov

For questions specifically about Kentucky Transportation Cabinet Division of Equipment sales and Auctions, contact:

Shawn Mackie, Administrative Section Supervisor
502.330.5391
shawn.mackie@ky.gov

For questions about surplusing items, contact KLC Municipal Law.