Title
Adopt a Resolution to Authorize the City Manager to Declare Ten Vehicles as Surplus and Approve the Sale of Said Surplus Assets at Public Auction by U.S. Auctions
Staffreport
COUNCIL PRIORITY
• Public Safety
• Fiscal Sustainability and Transparency
SUMMARY AND RECOMMENDATIONS
The Police Department coordinates the replacement of vehicles in its fleet. The vehicles are sold when they reach the end of their useful lives. Staff recommends the City Council declare ten vehicles as surplus and authorize the auction of said vehicles by U.S. Auctions.
BACKGROUND
There are ten Police fleet vehicles that have reached the end of their useful lives based on the City’s vehicle replacement policy and are thus recommended for surplus. These vehicles have been stored at the Public Works Service Center since they were taken out of service. The criteria for surplus includes the number of miles on each vehicle, increasing maintenance costs, and other factors. In addition, each vehicle is fully depreciated.
Section 1-6-500 of the San Leandro Municipal Code authorizes the purchasing agent to sell surplus items at public auction. Upon approval of staff’s recommendation, the vehicles will be sold at public auction by U.S. Auctions on a date to be determined in this fiscal year.
Analysis
The repair of these vehicles would be cost prohibitive and will far exceed their current market values. Therefore, staff recommends retiring these vehicles and declaring them surplus. The Police Department removes all equipment including radios, computers, sirens, and emergency lights, from decommissioned vehicles. Subsequently, the Department reallocates this equipment to new vehicles as a cost-saving measure for replacement.
Financial Impacts
The sale of these ten vehicles will generate a modest one-time revenue. Although there is no guarantee of the revenue that an auction can generate, prior auctions of similar size have seen returns of $53,000 to $70,000. Funds generated by the sale of the vehicles will be returned to the Equipment Repair and Maintenance Fund, revenue account 690-3844.
ATTACHMENT
A - Resolution to Declare Surplus and Authorize Auction
PREPARED BY: Steve Cesaretti, Lieutenant, Police Department