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HomeMy WebLinkAbout4.02 SurplusEquipDisposal CITY CLERK FILE #350-40 AGENDA STATEMENT CiTY COUNCIL MEETING DATE: July 2, 2002 SUBJECT: Disposal of Property- Surplus Equipment Report Prepared By: Steve Pappa, Information Systems Manager ATTACHMENTS: 1. Resolution Declaring Surplus Equipment 2. Notice of Public Auction RECOMMENDATION: ~ Adopt the Resolution and authorize Staff to proceed with transfer of property to Nationwide Auction Systems pursuant to the current agreement with the City. FINANCIAL STATEMENT: Pursuant to the Dublin Municipal Code, proceeds from the sale of property will accrue in the General Fund and Equipment Replacement Fund. DESCRIPTION: City Staff have identified a number of surplus equipment items that can be eliminated by forwarding to an auction firm for disposal. Consistent with past practice, Staff proposes to transfer all items to a single Professional auction firm, which has a current agreement with the City (Nationwide Auction Systems). The firm conducts bi-monthly auctions of miscellaneous goods similar to those the City currently has available. Items Available for Auction City Staff, including the Information Systems Division, have identified various surplus property items that can be disposed of at this time. The need for storage space requires the City to periodically dispose of surplus items stored at City facilities. The City's purchasing ordinance allows for auctioning of equipment declared surplus. Dublin Police Services frequently uses Nationwide Auction Systems to dispose of surplus equipment and unclaimed items. The Auction Company is responsible for grouping the items and preparing the lots to be sold. In the past, all items, including non-fimctioning equipment, were sold successfully by the auctioneers. On November 8, 1993, the City entered into an agreement with Nationwide Companies to auction various items including surplus vehicles and equipment. The agreement provided that it would remain in effect unless either party gave 30 days notice of termination. Staff has contacted Nationwide and they have indicated that they will continue to honor the terms of the 1993 agreement for their auction on July 13, 2002. Nationwide conducts auctions from their northern California facility located in Benicia. The firm arranges for the pick up and transport of all items to their facility. They are also responsible for marketing the sale. COPIES TO: ~ ITEM NO. Nationwide will retain a 10% commission on all items sold. The City has had positive experiences with the prices received on items auctioned by Nationwide in the past, although it is recognized that past sale prices cannot be a guarantee of future sales. Staff would request that the City Council adopt the attached resolution, which declares the items as surplus and authorize the use of Nationwide Auction Systems for all appropriate surplus equipment identified by the Information Systems Division and currently held by the City. RESOLUTION NO. -02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING SURPLUS EQUIPMENT WHEREAS, the City Manager has determined that certain equipment is no longer needed for City purposes; and c/ WHEREAS, the most effective method of disposing of such items is by auction; and WHEREAS, independent firms are available to publicly auction items to the highest bidder; and WHEREAS, the Information Systems Division has miscellaneous surplus equipment which pursuant to the local purchasing ordinance may be disposed of at an auction; and WHEREAS, consolidating the sale of all items is a cost-effective means to obtain auction services. NOW, THEREFORE, BE IT RESOLVED that the City Manager and/or his designee shall be authorized to arrange for the auction of unclaimed property and other surplus City property in accordance with state and local laws and regulations. BE IT FURTHER RESOLVED that the City Manager and/or his designee shall be authorized to make any and all necessary arrangements to transfer the property to be auctioned to Nationwide Companies pursuant to an agreement between the City of Dublin and Nationwide dated November 8, 1993. PASSED, APPROVED AND ADOPTED this 2nd day of July, 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT 1 NOTICE OF PUBLIC AUCTION OF SURPLUS PROPERTY In accordance with Chapters 2.36 and 2.40 of the Dublin Municipal Code (DMC), the City Manager has determined that certain surplus and unclaimed property is currently held by the City. The Auction shall be held July 13, 2002, beginning at 9:00 A.M. at Nationwide Auction Systems, 1 Oak Road, Benicia, California 94510, (707) 745-0119. The City of Dublin surplus equipment to be auctioned includes: computers; printers; telephone equipment; computer server; and miscellaneous small electronic equipment. This Notice shall be posted for at least five days prior to the date of the Auction at the public notice hearing locations designated by the City of Dublin. July 2, 2002. Richard C. Ambrose, City Manager ATTACHMENT 2