Title
Staff Report for Resolution Declaring Nine Vehicles and One Street Striper Surplus, Authorizing the Sale of One Truck to the San Leandro Unified School District for $1,000, and Selling the Remaining Vehicles and the Striper at Public Auction
Staffreport
RECOMMENDATIONS
Staff recommends the City Council declare certain vehicles and equipment surplus and authorize sale of these vehicles. One unit will be sold to the San Leandro Unified School District and the remaining equipment sold at public auction.
BACKGROUND
There are six police units, two pickup trucks, an aerial ladder truck, and a street striper ready for sale. Since being taken out of service over the past year, these units were stored at the Public Works Service Center.
All vehicles recommended for surplus have reached the end of their useful lives after meeting the criteria of the City's vehicle replacement policy. Criteria include the number of miles on each vehicle, increasing maintenance costs, and other factors. In addition, each unit is fully depreciated.
One vehicle, the 2001 Ford ¾ ton pickup was offered for sale to the San Leandro Unified School District at the direction of the City Council. The District agreed to purchase it for $1,000, fair market value given the condition of the vehicle. The remainder of the vehicles will be sold at a public auction by 1st Capitol Auction in Vallejo in March 2012.
Section 1-6-500 of the San Leandro Municipal Code authorizes the Purchasing Agent to sell surplus items, including at public auction. If staff's recommendation is approved, the pickup will be sold the District and a public auction will be scheduled for March 23 and 24, 2012. Public notice of the auction and auction preview will be posted on the City's web site.
Previous Actions
· At the January 17, 2012 City Council meeting, staff was directed to reach out to the San Leandro Unified School District and inquire about interest in any of the vehicles prior to auctioning. The District agreed to purchase the ¾ ton truck for $1,000, fair market value.
Fiscal Impacts
Sale of the vehicles and equipment at auction generates a moderate amount of one-time revenue. Although there is no guarantee on the revenues that an auction can generate, prior auctions of similar size have seen returns in the range of $35,000 to $65,000
ATTACHMENTS
· List of vehicles (9)
· List of heavy equipment (1)
PREPARED BY: James H. O'Leary, Interim Finance Director, Finance