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Home My WebLink About07/16/1991, C-8 - SURPLUS CITY PROPERTY y��fll II ��IM�IYlllll�lll 1I "J f MffTI7- DATE: '�'�/ Cl O San LUIS O$ISpO y-1 COUNCIL AGENDA REPORT MM NUMBER:^_ FROM: William C. Statler, Director of Finance Prepared By: Vi Sheldon, Accounting Supervisor` SUBJECT: SURPLUS CITY PROPERTY CAO RECOMMENDATION Adopt a resolution declaring the property listed in Exhibits A and B as surplus property. DISCUSSION Section 906 of the City Charter requires that the City Council approve the sale or disposal of surplus property with an estimated value greater than $100. The Utilities Director has identified the equipment and materials used in the Wastewater Treatment Plant Pilot Study (Exhibit A) as surplus property and requested authorization to dispose of this property in accordance with the City's surplus property procedures. Additionally, the Director of Finance has identified the four copiers listed in Exhibit B as surplus to the needs of the City. A list of the equipment in Exhibit B was reviewed by all Departments and no requests were received for transfer or retention. Accordingly, it is recommended that the Council adopt a resolution declaring the listed property as surplus property which will allow staff to dispose of the property as follows: ■ As recommended by the Utilities Director, the equipment in Exhibit A will be sold to Brown and Caldwell for $5,000. ■ The equipment listed in Exhibit B will be sold at public auction in accordance with the City's property disposal policies. It is anticipated that the City will receive $1,000 in proceeds from this sale which will be conducted by West Coast Auctioneers in July of 1991. ATTACHMENTS Resolution declaring property listed in Exhibit A and B as surplus property. EXHIBITS A. Surplus property listing - Wastewater Treatment Pilot Plant Equipment B. Surplus property listing - Copiers RESOLUTION NO. (1991 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING PROPERTY LISTED IN EXHIBIT A AND B AS SURPLUS PROPERTY BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. That the City Council hereby declares that all items of property listed in Exhibit A and Exhibit B attached and incorporated herein by reference are surplus property. SECTION 2. Disposal of the property shall be made as determined by sale at public auction or by another method of disposal in accordance with the City's surplus property policy as determined by the Director of Finance to be in the best interest of the City. On motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of ,1991. Mayor Ron Dunin ATTEST: Pam Voges, City Clerk APPROVED: Qui v ity Administrative Officer /QALv#L i ow e Director of Finance C 86 �'� EXHIBIT A �i►IIII II IIIIIIII I I��IIIII IIIIII� IIIA city of sAn luis oaspo 25 Prado Road • San Luis Obispo,.CA 93401 June 18, 1991 To: Bill Statler, Finance Director Via: William T. Hetland, Utilities Director From: John E. Moss, Wastewater Division Manager SUBJECT: SALE OF SURPLUS PROPERTY, WASTEWAT TREATMENT PILOT PLANT EQUIPMENT In 1989 the City retained the services of the University of North Dakota, Energy and Mineral Research Center (EMRC) , to construct and operate a wastewater pilot study to identify the most cost effective treatment processes for the plant expansion projects. The study was a big success and was key in the development of the Unit 4 Wastewater Treatment Plant Improvements design. Since about November 1989, the remnants of the pilot plant have been stored at the wastewater treatment plant. The pilot plant consisted of four units or skids, with one skid belonging to EMRC, one to Brown and Caldwell and the remaining two the property of the City. With the construction of the treatment plant improvements to begin in July 1991, it has now become necessary to remove the pilot plant equipment . from the plant grounds. Brown and Caldwell (B&C) had earlier expressed interest in purchasing the City's portion of the pilot plant and staff has recently negotiated a purchase price of $5, 000 with B&C. It should be noted that the City expended considerably more for the construction of the pilot plant, however its value is limited to its use as a pilot study facility. Wastewater treatment staff has completed an inventory of the salvageable equipment and has provided the following full purchase price estimate: 48 ft. 12 in. sch 80 pvc pipe @ $10. 20/ft = $489. 00 72 ft. 6 in. Excelon pipe @ $7 . 00/ft = $504 . 00 Misc. Couplings = $200. 00 100 brass ball valves @ $6. 00 ea. _ $600.00 3 3in. gate valves @42.81 ea. = $128. 00 12 2 in. plastic ball valves @ $32 .00 ea. _ $384. 00 2 60 amp electrical panels @ $100. 00 ea. _ $200. 00 40 misc. circuit breakers @ $2 . 00 ea. = $ 80. 00 9 thermal overload switches @ $20. 00 ea. _ $180. 00 24 diffusers @ $30.00 ea. = $720. 00 14 pressure gauges @ $10.00 ea. _ $140. 00 2 in-line turbidimeters @ $100.00 ea. _ $200.00 TOTAL SALVAGEABLE EQUIPMENT $3825. 00 C-8-3 Pilot Plant Surplus Property Page 2 Skid and tank scrap metal weight approximately 13 700 lbs. Scrap Value 55. 00 per ton $376. 00 TOTAL ESTIMATED VALUE TO CITY $4201. 00 Based on the above value estimates of what the City could reasonably expect to sell the pilot plant equipment for, a sale price of $5, 000 to Brown and Caldwell seems reasonable and would be in the best interest of the City. As stated previously, the real value of the equipment is in its use for a pilot study and hence its greater value to Brown and Caldwell, a consulting engineering firm. Staff is recommending authorization for sale of the above listed equipment, including skids and tanks, to Brown and Caldwell Engineers at the price of $5, 000. Revenue from the sale of the equipment should go to the Sewer Fund (052) . If you have any questions regarding this request, please don't hesitate to call me. C-84 EXHIBIT B CITY OF SAN LUIS OBISPO SURPLUS PROPERTY' July 1, 1991 Description QUANTITY UNIT VALUE 'IUM VALUE Canon Copier Model NP 155 1 $250.00 $ 250.00 Canon Copier Model 210 1 $250.00 $ 250.00 Canon Copier Model 3225 F 1 $250.00 $ 250.00 Canon Copier Model NP 155 1 $250.00 $ 250.00 TOTAL $1,000.00