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HomeMy WebLinkAbout09/21/1993, C-8 - STATE/FEDERAL SURPLUS PROPERTY PROGRAM IIIIIn►yllll�lllllllll II MEETING DATE: II II I► ►����� city of san LUIS OBISPO 91-,.91-,.;' Y3 - �- COUNCIL AGENDA REPORT ITEM NUMBER:er FROM: William C. Statler, Director of Finance Prepared By: Carolyn Dominguez, Accounting Manager SUBJECT: STATE/FEDERAL SURPLUS PROPERTY PROGRAM CAO RECOMMENDATION Adopt a resolution authorizing the City to participate in the state/federal surplus property program. DISCUSSION The California State Department of General Services (Office of Surplus Property) has been tasked with the distribution of surplus federal and state surplus property to eligible recipients. The State maintains warehouses in Sacramento and Fullerton for a wide variety of new and used equipment: handtools, machine tools, furniture, vehicles, communication and electronic equipment, office machines and supplies, and construction equipment. The City of San Luis Obispo will meet the eligibility requirements upon adoption of a resolution authorizing participation and completion of an application. How does the program work? Surplus property is shipped to the warehouse facilities on a daily basis where it is inventoried and available for inspection. The State does not distribute any lists of available surplus items because the inventory is constantly changing. Instead, participants must call the warehouse to see if an item is available to fit particular specifications. Participants may also file requests for specific items that are not currently available. All items are offered on an "as is" basis without any kind of warranty. It is important that the participant inspect the property before taking delivery. The State charges a nominal fee for handling, shipping, and overhead expenses. Depending on the type of item, surplus property acquired must be used for one year to eighteen months before participants may dispose of it. i How will the City participate in the program? In an effort to reduce operating expenses, City departments are encouraged to use cooperative purchasing arrangements whenever possible, and increasing our use of cooperative purchasing is a key objective in the 1993-95 Financial Plan. Participation in this program offers an additional cooperative opportunity to obtain supplies and equipment at a very low cost, when available. As part of the formal and informal bidding procedures, departments would call the Office of Surplus Property to determine if an item meeting the specifications was. in their current stock. If available, the City could experience significant savings with little additional effort on the City's part. A list of City items identified for replacement through the Equipment Replacement Fund will also be sent to the State in case the items become available. C—B-� 6111%IVIIIIIIIIII �1U City of San LUIS osiSpo COUNCIL AGENDA REPORT What disadvantages are there to this program? There will be a slight increase in staff efforts for purchasing activities. If the items are available, there will be additional staff and travel costs associated with inspecting the items in either Sacramento or Fullerton to ensure that they are in good condition and will meet the City's needs. However, if the City can acquire new items (or used items in good condition) at virtually no direct cost, then these additional efforts will be more than offset by the cost savings to the City. It may be that the suitability or timing of availability of items, coupled with the costs of inspection and delivery, will result in no incentives for active use of the program. However, only by giving the program a try will we find out if there are significant long-term benefits to the City. ATTACHMENT Resolution authorizing the City to participate in the state/federal surplus property program c-B-.Z RESOLUTION NO. (1993 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING PARTICIPATION IN THE STATE/FEDERAL SURPLUS PROPERTY PROGRAM WHEREAS, the California State Agency for Surplus Property has been tasked with the responsibility for distributing surplus federal and state property to eligible organizations, and WHEREAS, the City of San Luis Obispo is an eligible organization and wants to participate in this program in order to reduce its cost of operation. NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the officials whose names, titles, and signatures are listed below are hereby authorized as representatives of the City to acquire surplus property from the California State Agency for Surplus Property under the terms and conditions listed in Exhibit A attached hereto. John Dunn, City Administrative Officer William C. Statler, Director of Finance Carolyn Dominguez, Accounting Manager On motion of seconded by , and on the following roll call vote: AYES: NOES: ABSENT: Resolution No. (1993 Series) the foregoing Resolution was passed and adopted this day of , 1993. Mayor Peg Pinard ATTEST: Diane Gladwell, City Clerk APPROVED: Jeffrey G. Jorgensen, City Attorney Exhibit A TERMS AND CONDITIONS (A) THE DONEE CERTIFIES THAT: (1) It is a public agency;or a nonprofit institution or organization,exempt from taxation under Section 501 of the Internal Revenue Code of 1954;within the meaning of Section 2030)of the Federal Property and Administrative Services Act of 1949,as amended,and the regulations of the Administrator of General Services. (2) If a public agency,the property is needed and will be used by the recipient for carrying out or promoting for the residents of a given political area one or more public purposes,or,if a nonprofit tax-exempt institution or organization,the property is needed for and will be used by the recipient for educational or public health purposes,including research forsuch purpose,orfor programs for older individuals.The property is not beingacquired forany other use or purpose,or for sale or other distribution;or for permanent use outside the state,except with prior approval of the state agency. (3) Funds are available to pay all costs and charges incident to donation. (4) This transaction shall be subject to the nondiscrimination regulations governing the donation of surplus personal property issued under Title VI ofthe Civil Rights Act of 1964,Title VI,Section 606,of the Federal Property and Administrative Services Act of 1949,as amended,Section 504 of the Rehabilitation Act of 1973,as amended,Title IX of the Education Amendments of 1972,as amended,and Section 303 of the Age Discrimination Act of 1975. (B) THE DONEE AGREES TO THE FOLLOWING FEDERAL CONDITIONS: (1) All items of property shall be placed in use for the purpose(&)for which acquired within one year of receipt and shall be continued in use far such purpose(s) for one year from the date the property was placed in use.In the event the property is not so placed in use,or continued in use,the donee shall immediately notify the state agency and,at the donee's expense,return such property to the state agency,or otherwise make the property available for transfer or other disposal by the state agency,provided the property is still usable as determined by the state agency. (2) Such special handling or uselimitations as are imposed by General Services Administration(GSA)on any item(s)of property listed hereon. (3) In the event the property is not so used or handled as required by(B)(1)and(2),title and right to the possession of such property shall at the option of GSA revert to the United States of America and upon demand the donee shall release such property to such person as GSA or its designee shall direct. (C) THE DONEE AGREES TO THE FOLLOWING CONDITIONS IMPOSED BY THE STATE AGENCY,APPLICABLE TO ITEMS WITH A UNIT ACQUISITION COST OF f5,0000R MORE AND PASSENGER MOTOR VEHICLES,REGARDLESS OF ACQUISITION COST,EXCEPT VESSELS 50 FEET OR MORE IN LENGTH AND AIRCRAFT., (1) The property shall be used only for the purpose(&)for which acquired and for no other purpose(s) (2) There shall be a period of restriction which will expire after such property has been used for the purpose(s)for which acquired for a period of 18 months am the date the property is placed in use,except for such items of major equipment,listed hereon,on which the state agency designates a further period of zriedon. (3) In the event the property is not soused as required by(C)(1)and(2)and federal restrictions(B)(1)and(2)havecxpired then title and right to the possession of such property shall at the option of the state agency revert to the State of California and the donee shall release such property to such personas the state agency shall direct. (D) THE DONEE AGREES TO THE FOLLOWING TERMS,RESERVATIONS,AND RESTRICTIONS: (1) From the date it receives the property listed hereon and through the period(s)of time the conditions imposed by(B)and(C)above remain in effect,the donee shall not sell,trade,lease,lend,bail,cannibalize,encumber,or otherwise dispose of such property,or remove it permanently,for use outside the state, without the prior approval of GSA under(B)or the state agency under(C).The proceeds from any sale,trade,lease,loan,bailment,encumbrance,or other disposal of the property,when such action is authorized by GSA or by the state agency,shall be remitted promptly by the donee to GSA or the state agency,as the case may ba (2) In the event any of the property listed hereon is sold,traded,leased,loaned,bailed,cannibalized,encumbered,or otherwise disposed of by the donee from the date it receives the property through the period(s)of time the conditions imposed by(B)and(C)remain in effect,without the prior approval of GSA or the state agency,the donee,at the option of GSA or the state agency,shall pay to GSA or the state agency,as the case may be,the proceeds of the disposal or the fair market value or the fair rental value of the property at the time of such disposal,as determined by GSA or the state agency. (3) If at anytime,from the date it receives the property through the period(s)of time the conditions imposed by(B)and(C)remain in effect,any of the property listed hereon is no longer suitable,usable,or further needed by the donee for the purpose(s)for which acquired,the donee shall promptly notify the state agency, and shall,as directed by the state agency,return the property to the state agency,release the property to another donee or another state agency or a department or agency of the United States,sell,or otherwise dispose of the property.The proceeds from any sale shall be remitted promptly by the donee to the state agency. (4) The donee shall make reports to the state agency on the use,condition,and location of the property listed hereon,and on other pertinent matters as may be required from time to time by the state agency. (5) At the option of the state agency,the donee may abrogate the conditions set forth in(C)and the terms,reservations,and restrictions pertinent thereto in(D) by payment of an amount as determined by the state agency. (E) THE DONEE AGREES TO THE FOLLOWING CONDITIONS,APPLICABLE TO ALL ITEMS OF PROPERTY LISTED HEREON: (1) The property acquired by the donee is on an"as is,""where is"basis,without warranty of any kind. (2) Where a donee carries insurance against damages to or loss of property due to fire or other hazards and where loss of or damage to donated property with unexpired terms,conditions,reservations,or restrictions occurs,the state agency will be entitled to reimbursement from the donee out of the insurance proceeds, of an amount equal to the unamortized portion of the fair value of the damaged or destroyed donated items. 1 TERMS AND CONDITIONS APPLICABLE TO THE DONATION OF AIRCRAFT AND VESSELS(50 FEETOR.MORE IN LENGTH)HAVING ACQUISITION COST OF 55,000 OR MORE,REGARDLESS OF THE PURPOSE FOR WHICH ACQUIRED: The donation shall be subject to the terms, conditions, reservations,and restrictions set forth in the Conditional Transfer, Document executed by the authorized donee representative.