Title
Staff Report for Resolution Declaring Twenty-One (21) Vehicles, Two (2) Pieces of Equipment, and Other Miscellaneous Parts as Surplus and Authorizing the Sale of Said Surplus Assets at a Public Auction.
Staff Report
SUMMARY AND RECOMMENDATION
Staff recommends the City Council declare certain assets surplus and authorize sale of said items at a public auction.
BACKGROUND
All vehicles recommended for surplus have reached the end of their useful lives and meet the criteria of the City’s vehicle replacement policy. This includes the number of miles on each vehicle, increasing maintenance costs and other factors. In addition, each unit is fully depreciated.
San Leandro Unified and San Lorenzo Unified School Districts receive the first offer of the city’s surplus assets. Based on recent discussions between the Public Works Director and both City school districts, the Public Works Director has determined that these vehicles would not be of interest to either district.
Currently out-of-service, the items are being stored at the Public Works Service Center.
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, said vehicles will be sold at a public auction by U.S. Auctions on December 1, 2017. Public notice of the auction and auction preview will be posted on the City’s web site.
Fiscal Impact
The sale of these items at auction generates a moderate 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 $35,000 to $65,000.
ATTACHMENT
• List of vehicles (21), equipment (2) and parts
PREPARED BY: David Baum, Finance Director, Finance Department