Title
Staff Report for Resolution Declaring Sixteen (16) Vehicles 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 vehicles surplus and authorize sale of said vehicles at a public auction.
BACKGROUND
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, San Leandro Unified School District will purchase two vehicles recommended for surplus. As such, there are sixteen (16) surplus City assets ready for sale via public auction. Currently out-of-service, the items are being stored at the Public Works Service Center.
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.
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 April 7, 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 (16)
PREPARED BY: David Baum, Finance Director, Finance Department