HomeMy WebLinkAbout11-07-2012 c2 surplus designation & salecounci l
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C I T Y O F S A N L U I S O B I S P O
FROM :
Carrie Mattingly, Interim Director of Public Work s
Prepared By :
Jeremy Schmidt, Fleet Maintenance Superviso r
Jake Hudson, Interim Deputy Director of Public Work s
SUBJECT : SURPLUS DESIGNATION AND AUTHORIZATION OF SAL E
RECOMMENDATIO N
Authorize the surplus designation and disposal of surplus units by sale, auction, trade-in, or othe r
methods in accordance with the City's policies and procedures as prescribed in the Financia l
Management Manual Sections 405-L and 480-B .
DISCUSSIO N
Staff has identified seventeen vehicles and pieces of equipment meeting the criteria for surplus ,
in accordance with the City's Financial Management Manual Sections 405-L and 480-B
(Attachment 1). The vehicles and equipment units listed below have since been replaced and ar e
ready to be designated as surplus . These vehicles have an estimated value in excess of $1,00 0
each and therefore require City Council approval before they can be sold .
No.Asset No .Description Progra m
8301 1983 Portable Generator Streets Maint
2 9908 1988 Asphalt paver Streets Main t
3 8814 1988 Trailer Fleet Services
4 8927 1989 Sullair Air Compressor Wastewater Collection s
5 9108 1991 GMC Top Kick Asphalt Patcher Streets Main t
6 9607 1996 Ford Ranger Pick Up Parks Main t
7 9608 1996 Ford Ranger Pick Up CPI Engineerin g
8 9913 1997 Ford F150 Pick Up Building Main t
9 0109 2000 Ford Crown Victoria Police
10 0005 2000 Toro Mower Gol f
11 0120 2001 Dodge Durango Water Dist r
12 0119 2002 Dodge Dakota Water Distr
13 0401 2004 Chevy S 10 Pick Up Water Dist r
14 0617 2006 Chevy Tahoe Police -
15 0620 2006 Ford Crown Victoria Police
16 0625 2006 Ford Crown Victoria Police
17 No Unit ID Metal Dump Hauler Fleet Services
The vehicles and equipment listed above have since been replaced and removed from the activ e
fleet record as per the City's vehicle replacement plan and are therefore ready to be auctioned .
Most of the equipment has degraded significantly to the point of low market value . It i s
important that these vehicles are sold as soon as possible due to on-going depreciation and th e
costs associated with maintaining the vehicles in a condition adequate for sale .
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Surplus Designation and Authorization for Sale Page 2
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CONCURRENC E
The Finance Department concurs with the staff recommendation .
FISCAL IMPAC T
Staff anticipates the sale of these vehicle and equipment surplus items will generat e
approximately $30,000 in revenue after any associated advertising or auction fees . Fund s
generated by the sale of these surplus items which were General Fund supported will be returne d
to the Fleet Replacement Fund balance to support future purchases of replacement vehicles .
Funds generated by the sale of surplus items supported by enterprise funds will be returned to th e
applicable enterprise fund .
ALTERNATIVE
Deny Surplus designation and sale .The City Council could reject the surplus designation
request and direct staff to pursue vehicle rehabilitation and repairs . Staff does not recommen d
this option because these vehicles have been replaced and currently serve no purpose . If thes e
vehicles are not sold, the City will continue to incur costs associate with maintenance an d
depreciation .
ATTACHMEN T
Financial Management Manual, Section 405-L and 480-B
t :\council agenda reports\2012\2012 11-07\sale of surplus vehicles\ecar surplus designation.doc
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ATTACHMENT 1
Section 405-L : Procedure s
DISPOSING OF SURPLUS UNIT S
When a unit is replaced or otherwise permanently removed from service, report t o
Accounting that it is surplus and available for sale .
2 .
Include in each such report the following information for each unit reported :
•City identification number (e .g ., 9901 )
•Vehicle identification number (VIN )
•License number
•Model year (e .g.,2005), make (e .g., Ford), and model (e .g ., F-350 )
•Description (e .g ., one-ton truck )
•Assigned department (e .g ., Public Works )
•Assigned program (e .g ., Signal and Light Maintenance )
•Acquisition year (e .g ., 2004-05 )
•Estimated surplus valu e
•Basis of estimated surplus value (e .g ., blue book, previous auction proceeds )
•Current odometer or hourmeter readin g
•Justification for replacemen t
•Current locatio n
•Authorization to surplus (e .g., budget document that authorized replacement o r
other Council authorization to replace or dispose of the unit)
3 .
Finance Division will dispose of surplus vehicles in accordance Section 480 of th e
Finance Management manual .
Section 480-B
AUCTION FIRM SERVICE S
OVERVIEW
To reduce staff time in the sale and disposal of property, to reduce the amount of space bein g
used to store surplus and unclaimed property, to improve the process of estimating the value o f
surplus property, and to maximize the value of return on surplus property, the Department o f
Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposa l
of personal property, consumable supplies and unclaimed property on an "as available basis "
after authorization is given by the Council or the Director of Finance & IT to sell or dispose o f
City property .
The policies and procedures provided below in conjunction with the City's auction firm wil l
provide the staff with the opportunity to systematize the sale and disposal of this property .
AUCTION FIRM RESPONSIBILITIE S
The following responsibilities will normally be assigned to the City's auction firm by Agreemen t
between the City and the firm selected :
A . The auction firm will be required to pickup any and all "marketable" surplus property b y
consignment and deliver this property to their premises where it shall be inventoried,
sorted, identified, and catalogued. An auction will be conducted within 30 days o f
receipt of property and supplies .
B . The auction firm will make the necessary arrangements for offering the property for sal e
by auction to the most qualified buyers to obtain the highest return possible . The auction
firm will advertise the auction in a manner that will obtain the maximum participation b y
the public in at least one newspaper of general circulation in the City of San Luis Obisp o
for a minimum of five days prior to a scheduled auction .
C .
The property consigned to the auction firm will remain the property of the City until sol d
or disposed in accordance with these procedures .
D .
Property not sold at auction will be disposed by on of the following methods :
1.Consignment to a sub-contractor specializing in unique or special equipment an d
material for which there is no local market .
2.Direct sale to a buyer of unique or special equipment and material for which ther e
is no local market .
3.By sale as salvage to a local dealer or any recycling firm .
4.By destruction at an appropriate landfill site and certification thereto .
5.Returned to the City .
E .
The material and equipment not sold at auction will be disposed of by one of the method s
described above within 15 days from the date offered at auction . For the purpose of thes e
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