HomeMy WebLinkAboutItem 6d PW Surplus Fleet Assets and Equipment Disposal Item 6d
Department: Public Works
Cost Center: 5201/5008
For Agenda of: 9/2/2025
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Interim Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager; Travis Gomez, Fleet
Maintenance Supervisor
SUBJECT: PUBLIC WORKS DEPARTMENT SURPLUS FLEET ASSETS AND
EQUIPMENT DISPOSAL
RECOMMENDATION
Authorize designation and sale of surplus SLO Transit vehicles and surplus Fleet
Maintenance equipment in accordance with the City’s policies and procedures prescribed
in the Financial Management Manual
POLICY CONTEXT
Sections 405-L, 480-A, and 480-B of the Financial Management Manual (Attachments A
and B) prescribe how surplus assets, including fleet vehicles, are disposed of by the City.
The SLO Transit vehicles recommended for surplus have far exceeded their default
minimum useful life benchmark of seven years for medium-size, medium-duty buses per
Federal Transit Administration Circular 5010.1F (page 148).
DISCUSSION
Background
The City currently stores two Transit vehicles at the Transit Yard that are not in service,
a 2011 Cutaway Bus and a 2006 Replica Trolley. Both have exceeded the Federal Transit
Administration’s (FTA) default minimum useful life benchmark of seven years. Once a
vehicle has reached its minimum useful life benchmark, it becomes eligible for disposal
and its replacement can be funded through FTA’s financial assistance programs.
The Transit Yard has 24 bus bays for parking of transit fleet vehicles. In May 2025, the
City took delivery of six new battery electric buses. Between the existing fleet and the
newly arrived buses, the Transit Yard is at capacity. Staff anticipates beginning
construction in October 2025 for the installation of charging equipment to support the new
electric buses. The construction will require closure of several bus bays, further limiting
the Transit Yard’s capacity.
SLO Transit has two additional electric buses on order. These buses are scheduled to
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begin production in February 2026. Staff anticipates taking delivery of these buses in April
2026, at which time the Transit Yard will be over capacity if vehicles are not disposed of
prior to delivery. With these issues in mind, staff has identified and recommends disposal
of two vehicles, a 2011 cutaway bus and a 2006 replica trolley, to ensure sufficient
capacity is available at the Transit Yard during the pending construction period and post -
delivery of additional electric buses. If these two vehicles are not disposed of prior to
construction, then off-site storage during the construction period will be required.
In addition to the surplus vehicles, Public Works Department’s Fleet Maintenance
program recently acquired new tire mounting and balancing machines to replace outdated
equipment. With this equipment acquisition, and a minor reconfiguration of the shop
layout, staff have identified several pieces of shop equipment that have exceeded their
useful life or are no longer used by the program. These include the previous tire machines,
a pedestal-mounted bench grinder, and an inoperable hydraulic press.
SLO Transit Surplus Vehicles
2011 Cutaway Bus
In 2015, the City purchased a “cutaway bus” from the San Luis Obispo Regional Transit
Authority (RTA). A cutaway bus is a smaller transit vehicle made by using a van or truck,
cutting off the back, and adding a larger passenger cabin. This 2011 bus can hold up to
28 passengers. Since 2015, SLO Transit has utilized the vehicle on its tripper services
(Highland Tripper, Laguna Tripper, San Luis Tripper) and, occasionally, on fixed-route
services with lower ridership levels.
In December 2024, staff was informed that the cutaway bus’s engine failed and required
replacement to keep the vehicle in service. A local service center quoted $17,305 for labor
and parts to replace the engine (Attachment C). The vehicle is well beyond its minimum
seven-year useful life, per FTA Circular 5010.1F, and the recently adopted 2025-2027
Financial Plan includes capital funding to replace the vehicle with a battery electric
equivalent. Investing over $17,000 into the vehicle at this point would not be the best use
of funds and disposal of the vehicle will not impact delivery of current service levels.
2006 Replica Trolley
In 2018, the City purchased a replica trolley from the RTA for $1.00. The vehicle was
never put into revenue service by SLO Transit, and no documentation was found
indicating what service would be provided by the vehicle. The vehicle’s mechanical and
cosmetic condition has deteriorated over the last seven years and woul d require a
substantial investment to get the vehicle into revenue service. SLO Transit owns a second
replica trolley that is operated on the Old SLO Trolley routes which will remain in service.
Photos of the vehicles are included in Attachment D to this report.
Table 1 - SLO Transit Fleet Asset Specifications
Asset No. Make Model Year Description Program
1167 El Dorado 2011 28-foot Cutaway Bus Transit
N/A Ford 2006 30-foot Replica Trolley Transit
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Item 6d
Public Works Fleet Maintenance Equipment
In 2006, Public Works Fleet purchased Coats brand tire mounting and balancing
machines to support in-house tire services for the City’s fleet. After nearly two decades
of use, both machines have been replaced with updated equipment. The new tire
balancer includes lift assist functionality, improving operator safety and reducing strain
during use, while the new tire changer offers improved reliability and compatibility with
modern wheel assemblies. Neither of the original tire machines included lift assist
features, and both have surpassed their expected service life. With their replacement now
in place, the older units no longer serve an operational purpose. Disposing of the 2006
tire changer and balancer will free up valuable shop space and will not impact Fleet’s
ability to deliver service.
Public Works Fleet staff have also identified two additional pieces of shop equipment for
surplus: a Kan-Dor electric pedestal-mounted grinder (Asset Tag No. 10430) and a Dake
hydraulic press (Serial No. 183783). The model years for both items are unknown, but
they have been in the shop for decades and have seen minimal or no recent use. The
hydraulic press is inoperable, and due to its age, size, and unknown repair history, staff
determined that a replacement would be more cost-effective than attempting repair if
future needs arise. The grinder, while still functional, is no longer needed for shop
operations. Declaring both pieces as surplus will improve shop organization and ensure
space is reserved for equipment that actively supports Fleet operations. Photos of assets
are included in Attachment E to this report.
Table 2 - PW Fleet Surplus Asset Specifications
Asset No. Make Model Year Description Program
N/A Coats 2006 Tire Changer PW Fleet
N/A Coats 2006 Tire Balancer PW Fleet
10430 Kan-Dor Unknown Pedestal Grinder PW Fleet
N/A Dake Unknown Hydraulic Press PW Fleet
Next Steps
If Council authorizes disposal of the SLO Transit and Public Works surplus assets, staff
will proceed with disposal or sale of the surplus assets in accordance with Section 480 of
the Financial Management Manual.
Previous Council Actions
1. On March 21, 2015, Council approved acquisition of the cutaway bus from RTA.
2. On August 24, 2021, Council authorized disposal of surplus fleet and equipment for
similar reasons as recommended by the Public Works Department.
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3. On June 17, 2025, Council adopted the 2025-27 Financial Plan and the Capital
Improvement Plan (CIP). The CIP includes project no. 2000533 for the replacement
of the cutaway bus in FY 2025-26 (page 220).
Public Engagement
This is an administrative item, so no outside public engagement was conducted. Public
comment can be provided to the City Council through written correspondence prior to the
meeting and through public testimony at the meeting.
CONCURRENCE
The City’s Finance Department concurs with the recommended action in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report because the sale or surplus of property is not considered a “project”
as defined by CEQA Guidelines Section 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2025-26
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ 0 $ 0 $ 0 $ 0
Transit Fund $ 0 $ 0 $ 0 $ 0
Other: $ 0 $ 0 $ 0 $ 0
Total $ 0 $ 0 $ 0 $ 0
For SLO Transit’s assets, it is difficult to estimate how much revenue will be generated
from the sale of these vehicles because they are designed and built for specific purposes.
Any funds generated after payment of associated advertising and auction fees will be
returned to the Transit Fund to support transit-related operations and future capital
projects.
For Fleet Maintenance’s equipment, it is estimated that the sale will generate
approximately $4,000. This estimate is based on the age, condition, and inoperable status
of the equipment, as well as referencing comparable listings from online auction
platforms. All items have exceeded their useful life and have either been replaced or are
no longer required for operations. Any funds generated, after payment of auction related
fees, will be returned to the Public Works Fleet Maintenance program budget to support
ongoing Fleet operations and future equipment needs.
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Although no specific revenue is budgeted, any proceeds will be deposited into the
appropriate fund and used to offset future equipment or operational costs.
ALTERNATIVES
1. Deny designation and sale of surplus transit vehicles. Should Council choose this
option, staff will need to pursue rental of off-site storage for these surplus vehicles as
the Transit Yard has a limited number of parking spaces for fleet vehicles thus
incurring additional operating costs.
2. Deny designation and sale of surplus Fleet Equipment. Should Council choose
this option, staff would retain outdated, inoperable, and/or unused shop equipment in
the Fleet Maintenance facility. These items no longer support current operations and
would continue occupying valuable shop space that could otherwise be used for active
equipment, work areas, or storage. Retaining this equipment may also result in
increased clutter, reduced efficiency, and diminished shop safety.
ATTACHMENTS
A - Financial Management Manual, Section 405-L
B - Financial Management Manual, Sections 480-A and 480-B
C - Cutaway Bus Engine Repair Quote
D - SLO Transit Surplus Fleet Photos
E - Fleet Maintenance Surplus Equipment Photos
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405-17
Section 405-L: Procedures
DISPOSING OF SURPLUS UNITS
1. When a unit is replaced or otherwise permanently removed from service, report to
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 value
Basis of estimated surplus value (e.g., blue book, previous auction proceeds)
Current odometer or hourmeter reading
Justification for replacement
Current location
Authorization to surplus (e.g., budget document that authorized replacement or
other Council authorization to replace or dispose of the unit)
3. Finance Division will dispose of surplus vehicles in accordance Section 480 of the
Finance Management manual.
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480-1
Section 480-A
SURPLUS PERSONAL AND UNCLAIMED PROPERTY POLICY
OVERVIEW
This policy addresses the procedures for the disposal of surplus personal property, unclaimed
property, consumable supplies, and junk. The policies and procedures for the disposal or sale of
surplus real property, abandoned property and resale inventory are provided in other policy
documents.
In preparing this policy, not all issues or exceptions could be anticipated. Accordingly, the
guidance given in this policy does not relieve Staff from exercising good judgment in their
stewardship of the City's property resources. Whenever there is a question or doubt between the
guidance provided in this policy and the good judgment expected of a prudent person, good
judgment should always be the prevailing standard, with this policy as a minimum standard.
LEGISLATIVE POLICY
A. Surplus Property
Section 906 of the City Charter provides that the Council must approve the sale of
surplus property (real or personal) with an estimated value greater than $1,000.
B. Unclaimed Property
1. Chapter 3.32 of the City Municipal Code provides for the disposal of unclaimed
property by the Chief of Police. This property must be held for a minimum of
four months and notice of sale must be given at least five days prior to sale by
publication in a newspaper of general circulation. Property not sold may be
destroyed by the Police Department after public auction.
2. Sections 2080.4 and 2080.6 of the Civil Code requires any person finding
property valued at $10.00 or more to turn the property over to the Police
Department within a reasonable time, stating when and where the property was
found and providing a description of the property. If the property was saved, a
statement is required from the "finder" describing:
a. From what and how it was saved.
b. Whether the owner of the property is known to the "finder".
c. That the property has not been secreted, withheld, or partially disposed.
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ADMINISTRATIVE POLICY
A. The Director of Finance & Information Technology (IT) is authorized to declare as
surplus those items of personal property and consumable supplies estimated to be less
than $1,000 in value; Council approval is required to declare personal and consumable
supplies as surplus with a value of $1,000.
B. Department Heads are authorized to approve the disposal of property that is essentially
without value due to technical obsolescence or its unrepairable (or economically
unrepairable) condition. Department Heads may dispose of such junk property in the
manner they deem most appropriate, consistent with other rules, regulations, and the
City's ethics policy.
C. Generally, estimating the value of surplus property is made by the Department Head or
designated representative. In unique and unusual cases, Finance will assist Departments
in estimating the value of property by using the City's auction firm to provide a
professional estimate. However, in all cases, the Department Head must approve in
writing the estimated value of the property to be sold or otherwise disposed.
D. The Director of Finance & IT is authorized to sell, transfer, trade, or otherwise dispose of
surplus personal property, consumable supplies, or unclaimed property in the most cost
effective manner. Normally the sale of this property will be at auction with a firm
contracted to provide the following services:
1. Sell and dispose of personal property, consumable supplies and unclaimed
property at auction.
2. Provide professional estimates as to the value of personal property and
consumable supplies when required.
3. Assist in the sale of unique or special property and consumable supplies that
requires the use of a "specialty house" to sell or dispose of the property.
4. Dispose of unsaleable property, supplies and equipment at an approved disposal
site.
E. The Director of Finance & IT may dispose of surplus property and supplies by transfer to
another local government agency or non-profit organization based on the
recommendation of a Department Head. Although there may be circumstances where it
is appropriate to make such transfer without compensation, cash or in-kind services
should generally be received in an amount equal to or greater than the estimated value
provided by the City's auction firm or the Department Head. In the case of vehicles, "low
blue book value" may also be considered.
F. When it is a normal business practice, trade value should be obtained to determine the
most cost effective method of disposal and as a standard by which to evaluate the
services of the City's auction firm. There may be circumstances when trade value of
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property may exceed auction value, in which case the Director of Finance & IT may
authorize the trade of surplus property versus sale at auction based on the
recommendation of the appropriate Department head.
G. Advertising the sale of the City's property and unclaimed property will be made by the
City's auction firm in accordance with these procedures, the Auction Services
Agreement, and legislative policy. Accordingly, the advertising must disclose that the
property for sale at auction is either the surplus property of the City of San Luis Obispo
or is unclaimed property in the possession of the City and it must state the date and time
of sale. Property sold at auction will be advertised at least five days in a newspaper of
general circulation in the City of San Luis Obispo.
H. Property determined to be unclaimed by the Chief of Police may be sold at public auction
in accordance with these policies and procedures under the following conditions:
1. It is a thing which is commonly the subject of sale.
2. The owner cannot (with reasonable diligence) be found.
3. The owner, if identified, refuses to pay the reasonable charges incurred by the
City for storing and safeguarding of the property.
PROCEDURES
A. Surplus Personal Property and Consumable Supplies
1. Department Heads will identify personal property and supplies that are surplus to
their needs and notify the Director of Finance & IT by Memorandum to sell or
dispose of property identified, in accordance with City policy and procedures.
The property to be declared surplus will be listed and include the City Asset
Number (if applicable), a descriptive name of the property, quantity, pickup
location, estimated value, and name of the contract person with their extension
number. Separate memorandums must be prepared for property estimated to
exceed $1,000 in value and for property estimated to be less than $1,000 in value.
The memorandum (or listing) must indicate why the property is no longer
required.
2. Department Heads may request that Finance assist them in estimating the value of
personal property and consumable supplies. In such instances, Finance may
request the services of the City's auction firm in estimating these values.
However, these services are limited and should not be used except for unique and
unusual property.
3. Special handling will be required for the disposal of toxic and hazardous
materials, and should be coordinated with the City's Fire Department.
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4. After receipt of a request to dispose of personal property and consumable supplies
from a Department Head, Finance will circulate the list of property to other City
Departments as an advisory memorandum. The property listed may be claimed
by other Departments on a first come first serve basis. After 10 days from the
date of the advisory memorandum, this listing will be forwarded to the Housing
Authority, San Luis Coastal Unified School District, and United Way for their
information. If none of these agencies expresses interest in the remaining
property items within 10 days of receiving the listing, then the property will be
consigned to the City's auction firm for sale or other method of disposal as
determined by the Director of Finance & IT. Except in unusual circumstances,
surplus property will generally remain on site pending its final disposition. This
means that it is the responsibility of the interested party to make arrangements
with the disposing department to view the property, discuss its condition, and
coordinate any terms of transfer such as price, timing, and transportation.
5. For property with a value of $1,000 or more, the Director of Finance & IT will
prepare an Agenda Report for Council approval to declare the property as surplus
after review by the operating departments as described above and prior to the
consignment of property to the City's auction firm.
B. Evidence
The provisions of this policy do not address the disposal of property which is classified
as evidence. Evidence is governed by the provisions of the penal code and must be dealt
with accordingly. For example, evidence may be returned to the owner, subjected to lien,
or classed as contraband and accordingly destroyed. However, evidence may also be
determined by the Chief of Police to be unclaimed property and, in that event, will be
processed in accordance with the policies and procedures provided below.
C. Unclaimed Property
Unclaimed property received by the City will be processed as follows:
1. The Police Department is required to receive, hold, and safekeep all property
valued at more than $10 that is found within the City limits and turned in to the
Police Department for safekeeping. The owner will be notified as to where the
property may be claimed if the owner's identity can reasonably be determined.
2. If the owner appears within 120 days after receipt of the property by the Police
Department, proves ownership, and pays all reasonable charges, the Police
Department will return the property to the owner.
3. If the reported value of the property is fifty dollars or more (and no owner appears
and proves ownership within 120 days), the Police Department will publish a
notice, at least once, in a newspaper of general circulation. After seven days
following the first published notice the following actions will be taken if no
owner appears and proves ownership of the property;
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a. If the property was found in the course of employment by a City
employee, the property shall be sold at public auction.
b. The title shall vest in the person who found the property if he or she is
willing to pay the cost of the publication.
c. If the reported value of the property is less than $50 and no owner appears
and proves ownership of the property within 120 days, the title shall vest
in the person who found the property, unless the property was found in the
course of employment by a City employee, in which case the property
shall be sold at public auction.
d. Generally, the sale of unclaimed property will be made by the City's
auction firm; however, in unique circumstances, the Chief of Police may
request that Police Department staff conduct the auction. When the City's
auction firm is used, the firm must be notified in writing with a list of
property to be sold. This list does not require a statement of estimated
values. The letter will give the name of the contact person and extension
number, a short title property description, a pickup location, and a pickup
time.
e. Prior to sale, a listing of unclaimed property shall be provided to the
Director of Finance & IT, who will circulate this list as an advisory
memorandum to other City Departments. The property listed may be
claimed by other Departments on a first come first serve basis. After a 15
day period from the date of the advisory memorandum, the unclaimed
property will be available for sale at public auction according to policy.
f. The unclaimed property to be sold by the City's auction firm will be
transferred on consignment in accordance with the surplus property
policies.
g. Any property remaining unsold after being offered at public auction may
be destroyed or otherwise disposed of by the City's auction firm.
Approved by the City Manager on March 1, 1990; revised on January 14, 1994.
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480-10
Section 480-B
AUCTION FIRM SERVICES
OVERVIEW
To reduce staff time in the sale and disposal of property, to reduce the amount of space being
used to store surplus and unclaimed property, to improve the process of estimating the value of
surplus property, and to maximize the value of return on surplus property, the Department of
Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposal
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 of
City property.
The policies and procedures provided below in conjunction with the City's auction firm will
provide the staff with the opportunity to systematize the sale and disposal of this property.
AUCTION FIRM RESPONSIBILITIES
The following responsibilities will normally be assigned to the City's auction firm by Agreement
between the City and the firm selected:
A. The auction firm will be required to pickup any and all "marketable" surplus property by
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 of
receipt of property and supplies.
B. The auction firm will make the necessary arrangements for offering the property for sale
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 by
the public in at least one newspaper of general circulation in the City of San Luis Obispo
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 sold
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 and
material for which there is no local market.
2. Direct sale to a buyer of unique or special equipment and material for which there
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 methods
described above within 15 days from the date offered at auction. For the purpose of these
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instructions, the City will give approval as to the disposal method based on the
recommendation of the auction firm and the method that is in the best interests of the
City.
F. The auction firm will provide the Department of Finance & IT with a list of consigned
property with a check for the net proceeds from the auction or specialty sale within 60
days of receipt of consigned material and equipment providing the following information:
1. City Asset number (if available)
2. Short title description of the property
3. Date of sale or disposal
4. Purchaser or the disposal site
5. Total purchase price
6. Auction fee
7. Net to City
8. Method of disposal (sale at auction, transfer to a specialty house for sale, direct
sale as salvage, transfer to an appropriate landfill or disposal site, return to City)
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2011 Cutaway Bus
2006 Replica Trolley
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Kan Dor Grinder
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Coats Tire Balancer
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Coats Tire Changer
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Dake Hydraulic Press
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