Title
Adopt a Resolution to Approve and Authorize the City Manager to declare fourteen (14) Vehicles along with other miscellaneous pieces of equipment and items as surplus and authorize the sale of said surplus assets at public auction
Staffreport
COUNCIL PRIORITY
• Fiscal Sustainability and Transparency
SUMMARY
Public Works coordinates the purchase of new and replacement vehicles/equipment in the City’s fleet and related maintenance equipment to maintain that fleet. Units and equipment are sent to public auction when they have reached the end of their useful life and meet the criteria of the City’s vehicle replacement policy. Staff recommends the City Council declare certain assets as surplus and authorize sale of said items at public auction.
BACKGROUND
There are fourteen (14) vehicles along with other miscellaneous pieces of equipment and items ready for sale by public auction. These units have been stored at the Public Works Service Center since they were taken out of service. All vehicles recommended for surplus reached the end of their useful lives after meeting the City’s vehicle replacement policy. The criteria for surplus includes the number of miles on each vehicle, increasing maintenance costs, and other factors.
Section 1-6-500 of the San Leandro Municipal Code authorizes the Purchasing Agent to sell surplus items at public auction. If staff’s recommendation is approved, the vehicles/equipment will be sold at public auction by U.S. Auctions within three months of this action.
Analysis
The San Leandro Unified School District (District) receives the first offer of the City’s surplus assets. Currently there is no interest from the District in purchasing any of the surplus vehicles.
Selling the vehicles and equipment at auction will likely result in re-use and is preferable to selling the items for scrap or recycling.
Financial Impacts
The sale of these items at auction generates a modest amount of one-time revenue. Although there is no guarantee of the revenues that an auction can generate, prior auctions of similar size have seen returns in the range of $50,000-$80,000. Funds generated by the sale of equipment will be returned to the Equipment Maintenance Fund.
ATTACHMENTS
A:Draft Resolution Surplus Items for Public Auction
B: Auction Inventory List FY 24/25
PREPARED BY: Sarah Holguin, Administrative Specialist III, Public Works Department