Loading...
HomeMy WebLinkAbout09-06-2016 Item 09 Vehicle/Equipment Surplus Designation & Authorization of Sale Meeting Date: 9/6/2016 FROM: Daryl R. Grigsby, Director of Public Works Prepared By: Timothy S. Bochum, Deputy Director of Public Works Isaac Shuck, Fleet Maintenance Supervisor SUBJECT: VEHICLE/EQUIPMENT SURPLUS DESIGNATION AND AUTHORIZATION OF SALE RECOMMENDATION Authorize the surplus designation and disposal of surplus units in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Sections 405 -L, 480-A and 480-B. DISCUSSION Staff has identified 43 vehicles and pieces of equipment, miscellaneous shop equipment, tools and parts, and a boat motor, meeting the criteria for surplus, in accordance with the City’s Financial Management Manual Sections 405-L, 480-A and 480-B. The vehicles, equipment, and miscellaneous items listed below have since been replaced or no longer used and are ready to be designated as surplus. These items have an estimated value in excess of $1,000 each and therefore require City Council approval before they can be sold. No. Asset No. Description Department 1 0008 1999 CAT HX100 Portable Generator Utilities 2 0009 1999 CAT HX100 Portable Generator Utilities 3 0010 1999 CAT HX100 Portable Generator Utilities 4 0011 1999 CAT HX100 Portable Generator Utilities 5 0023 1999 Ford F-150 Pickup Public Works 6 0030 2000 Ford F-550 Flatbed Public Works 7 0116 2000 Ford F-550 Chassis Public Works 8 0128 2001 Toyota RAV4 CDD 9 0131-A4 2000 JD Tractor Aerator Attachment Public Works 10 0206 2001 Freightliner HD Truck w/Tymco Sweeper Public Works 11 0219 2002 Chevrolet C-1500 Parks & Rec 12 0220 2002 Chevrolet C-1500 Pickup PD 13 0224 2002 Dodge D-250 w/ Utility Bed Whale Rock 14 0229 2002 Ford Taurus CDD 15 0230 2002 Ford Taurus CDD 9 Packet Pg. 99 16 0231 2002 Ford Taurus Public Works 17 0310 2002 Dodge D-250 Pickup Public Works 18 0311 2002 Dodge D-250 Pickup Public Works 19 0313 2002 Dodge D-250 w/ Utility Bed Utilities 20 0314 2002 Dodge D-250 w/ Utility Bed Public Works 21 0332 2002 Dodge D-250 w/ Utility Bed Public Works 22 0412 2003 Ford Taurus Utilities 23 0602 2004 Buick Regal PD 24 0605 2005 Chevrolet Impala PD 25 0610 2006 Ford F-150 Pickup Public Works 26 0618 2006 Ford Crown Vic PD 27 0708 2006 Honda ST1300 Motorcycle PD 28 0710 2005 Honda ST1300 Motorcycle PD 29 0714 2007 Ford Crown Victoria PD 30 0721 2002 Dodge Caravan PD 31 0815 2008 Ford F-150 Pickup Public Works 32 0822 2008 Ford F-150 Pickup Parks & Rec 33 0839 2008 Dodge Charger PD 34 0902 2009 Ford F-150 Pickup Utilities 35 1010 2010 Ford F-150 pickup Utilities 36 1105 2011 Chevrolet Tahoe PD 37 8426 1984 CAT V50C Forklift Public Works 38 9104 1991 GMC Topkick Dump Truck Public Works 39 9702 1996 GMC C-2500 w/ Utility Bed Utilities 40 9822 1998 Ford Ranger Pickup Utilities 41 9903 1998 Ford Van F&IT 42 9906 1998 Ford F-150 Pickup Public Works 43 9910 1997 Ford Ranger Pickup Public Works 44 Venturo ET10KX Truck Mount Crane Public Works 45 Torch Mate CNC Cutting Table Public Works 46 Gray Lift Bumper Air Jack Public Works 47 Ford Motor Craft Diesel Tank Public Works 48 3 x Pallets - Misc. Obsolete Tools & Parts Public Works 49 Nut & Bolt Bins Public Works 50 Johnson VRP 70 Outboard Boat Motor Utilities The vehicles and equipment listed above have since been replaced and removed from the active fleet record as per the City’s vehicle replacement plan and are therefore ready to be auctioned. It is important that these vehicles are sold as soon as possible due to on-going depreciation and the costs associated with maintaining the vehicles in a condition adequate for sale. 9 Packet Pg. 100 CONCURRENCES The Finance Department concurs with the staff recommendation. FISCAL IMPACT Staff anticipates the sale of these surplus items will generate approximately $100,000 in revenue after any associated advertising or auction fees. Funds generated by the sale of these surplus items which were General Fund supported will be returned 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 the applicable Enterprise Fund. ALTERNATIVES Deny Surplus designation and sale. The City Council could reject the surplus designation request and direct staff to pursue vehicle rehabilitation and reutilization of the equipment, tools, and parts. Staff does not recommend this option because these vehicles and equipment have been replaced and currently serve no purpose. The shop equipment and tools are no longer used, and the parts are for vehicles no longer in the City Fleet. If these items are not sold, the City will continue to incur costs associated with maintenance, storage, and depreciation. Attachments: a - Disposing of Surplus Units - Section 405-L Procedures b - Surplus Personal and Unclaimed Property Policy - Section 480-A c - Auction Firm Services - Section 480-B 9 Packet Pg. 101 405-17 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. ATTACHMENT 1 9.a Packet Pg. 102 Attachment: a - Disposing of Surplus Units - Section 405-L Procedures (1439 : Vehicle/Equipment Surplus Designation & Authorization of Sale) 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 ATTACHMENT 1 9.a Packet Pg. 103 Attachment: a - Disposing of Surplus Units - Section 405-L Procedures (1439 : Vehicle/Equipment Surplus Designation & Authorization of Sale) 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. 480-1 ATTACHMENT 2 9.b Packet Pg. 104 Attachment: b - Surplus Personal and Unclaimed Property Policy - Section 480-A (1439 : Vehicle/Equipment Surplus Designation & Surplus Personal and Unclaimed Property Policy 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 480-2 ATTACHMENT 2 9.b Packet Pg. 105 Attachment: b - Surplus Personal and Unclaimed Property Policy - Section 480-A (1439 : Vehicle/Equipment Surplus Designation & Surplus Personal and Unclaimed Property Policy 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. 480-3 ATTACHMENT 2 9.b Packet Pg. 106 Attachment: b - Surplus Personal and Unclaimed Property Policy - Section 480-A (1439 : Vehicle/Equipment Surplus Designation & Surplus Personal and Unclaimed Property Policy I. 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. J. 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; 480-4 ATTACHMENT 2 9.b Packet Pg. 107 Attachment: b - Surplus Personal and Unclaimed Property Policy - Section 480-A (1439 : Vehicle/Equipment Surplus Designation & Surplus Personal and Unclaimed Property Policy G. If the property was found in the course of employment by a City employee, the property shall be sold at public auction. H. The title shall vest in the person who found the property if he or she is willing to pay the cost of the publication. I. 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. J. 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. K. 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. L. The unclaimed property to be sold by the City's auction firm will be transferred on consignment in accordance with the surplus property policies. M. 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. 480-5 ATTACHMENT 2 9.b Packet Pg. 108 Attachment: b - Surplus Personal and Unclaimed Property Policy - Section 480-A (1439 : Vehicle/Equipment Surplus Designation & 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 480-10 Auction Firm Services ATTACHMENT 3 9.c Packet Pg. 109 Attachment: c - Auction Firm Services - Section 480-B (1439 : Vehicle/Equipment Surplus Designation & Authorization of Sale) 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) 480-11 ATTACHMENT 3 9.c Packet Pg. 110 Attachment: c - Auction Firm Services - Section 480-B (1439 : Vehicle/Equipment Surplus Designation & Authorization of Sale)