Title
Staff Report for a City of San Leandro City Council Resolution to Authorize the City Purchasing Agent to Donate a Surplus City Vehicle to All Saints Episcopal Church for Use in its Social Ministries Programs
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that that City Council authorize the City Purchasing Agent to donate a surplus City vehicle to All Saints Episcopal Church valued from $7,500 to $9,600.
BACKGROUND
Father (Fr.) Justin Cannon, Rector of All Saints Episcopal Church, requests that the City donate a surplus City vehicle (Van #32) for use in the Church’s Social Ministries Programs, specifically its Food Pantry.
Analysis
All Saints Episcopal Church is a small parish located in the Broadmoor neighborhood. The Rector requests that the City donate a surplus van to the Church. The van would benefit the Social Ministries Programs, specifically the Food Pantry that serves approximately 350 people monthly. Guests to the food pantry range in age from young children under 10 who come with their parents to seniors in their 80s. The population served is very diverse: Asian, Latino, Caucasian, African American, and others. The Food Pantry is held the first Saturday of every month and also on the third Saturdays of November and December.
According to Fr. Cannon, it costs an average of $500 per month, or $6,000 per year to sustain the Food Pantry, which is entirely covered by grants and donations. This past year the average number of people served has consistently hit new records; in November 3, 2018 the Church celebrated 10 years of this service to the community.
The Social Ministries Programs also provide bag lunches for guests of the April Showers Program of the Interfaith Homelessness Network, feeding over 100 men and women, and meals for Building Futures with Women and Children.
Historically, when City vehicles and equipment go out of permanent service they are placed on a surplus list prepared by the Public Works Fleet Supervisor who sends the information to the City’s Purchasing Agent. The Purchasing Agent then proceeds with contracting with an auction company to transport and sell the vehicles or equipment. As part of the Finance Department’s process of preparing a staff report for Council’s consideration for disposal of the surplus property, San Leandro Unified School District is contacted to see if they are interested in purchasing (at Kelly Blue Book value) any of the City’s surplus vehicles.
The vehicle that All Saints Episcopal is interested in obtaining is a 2007 Ford E350 with 59,903 miles. Kelly Blue Book value is estimated at $7,500-$9,600 based on a sale to a private party. The San Leandro Municipal Code Section 1-6-500 provides that “the Purchasing Agent shall sell or exchange, in a manner designed to serve the best interests of the City, equipment, materials and supplies which have become unsuitable or unnecessary for City purposes”. Staff believes that the community service provided by All Saints Episcopal Church’s Social Ministries Program (at no cost to the recipients) does meet the Municipal Code’s intent. Programs to address food insecurity in the community help to advance one of the needs identified in San Leandro’s Human Service Gap Analysis.
Fiscal Impacts
When surplus vehicles are sold at auction, the proceeds are placed back into the Equipment Maintenance Fund Balance (Fund 690) for use of future City vehicle/equipment purchases. It is noted that the Kelly Blue Book value indicated has no bearing on what sale price might ultimately be obtained, and the auction house takes $175 to $250 per vehicle of every sale, as their cost of doing business.
The sale of this surplus vehicle would result in an estimated amount ranging from $7,500 to $9,600. This estimated amount would not be realized in the Equipment Maintenance Fund Balance. Since the City is a tax exempt agency, there is no ‘write-off’ value for donating the vehicle.
ATTACHMENT(S)
Bill of Sale attached to City Council Resolution
PREPARED BY: Debbie Pollart, Director, Public Works Department