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HomeMy WebLinkAboutItem 4.13 Surplus Property Disp (2) ., .,~ .., Jr~i'<'. , . .- .... CITY CLERK File # Dr:3l[5J[QJ-@[ill . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (March 16, 1999) SUBJECT: Disposal of Surplus Property - Vehicles & Unclaimed Property f~eport Prepared by: Paul S. Rankin, Assistant City Manager EXHIBITS ATTACHED: 1. Resolution Declaring Surplus Property RECOMMENDATION: /~~ Adopt the Resolution and authorize Staff to proceed with transfer of property to Nationwide Companies (Commercial Auction Systems) pursuant to their current agreement with the City. FINANCIAL STATEMENT: Proceeds from the sale of the City Owned vehicles will be collected as revenue in the Internal Service Fund. Pursuant to Dublin Municipal Code 2.40.080 proceeds from the sale of unclaimed property will accrue in the General Fund. Proceeds from the sale of Asset Seizure Vehicle will be remitted to the District Attorney for distribution pursuant to State Law. . DESCRIPTION: The City Staff have identified a number of items which can be disposed of and would be appropriate to forward to an Auction firm. The City has both vehicles as well as unclaimed property available 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 COMPANIES). The firm conducts monthly auctions of both vehicles and miscellaneous goods similar to those the City currently has available. Items Available For Auction In the current fiscal year Police Services put into service four replacement patrol vehicles. Based upon the condition of the vehicles replaced it would now be appropriate to surplus four 1995 model police patrol vehicles. One of the Crown Victoria Police Vehicles is currently inoperable. The mileage on the vehicles ranges between 77,944 miles and 84,591 miles. The replacement vehicles are now in service and it is appropriate to remove the old cars from the fleet. The City also has one 1990 Ford T-Bird with 114,308 miles, which is currently not driveable. This vehicle was replaced in a previous fiscal year and is considered surplus. Dublin Police Services were also involved in an asset seizure case pursuant to the California Health & Safety Code. A judgement has been entered to provide the City with the title to a 1984 Mercedes Benz. Pursuant to the State law this vehicle is to be auctioned. The City will remit all proceeds to the District Attorney and the funds are then distributed between the agencies involved in the case. The City will receive approximately 46% of the proceeds. . COPIES TO: G:\AGENDA\AUCTN99.DOC ITEM NO. 4.1'7 hi addition to the Police Vehicles, Police Services has identified various items of unclaimed prc1f>erty ~ which can be disposed of at this time. The need for storage space requires the City to periodically dispose of items stored at City facilities. Currently there are approximately 56 bicycles and various items of unclaimed property held in the evidence room. The City Municipal Code Section 2.40.070 provides for auctioning bicycles held at least three months and other items which have been held at least four months.. The Police Services Staff have verified that all items to be auctioned exceed the minimum holding periods. The Auction Company is responsible for grouping the items and preparing the lots to be sold. In the past all items including non-functioning equipment were successfully sold by the auctioneers. On November 8, 1993 the City entered into an agreement with Nationwide Companies to auction various items including surplus vehicles. The agreement provided that it would remain in effect unless either party gave 30 notice oftermination. Staff has contacted Nationwide and they have indicated that they will continue to honor the terms of the 1993 agreement for their next auction on April 10, 1999 . Nationwide conducts auctions from their northern California facility located in Benecia. The firm arranges for the pick up of all items and transportation to their facility. They are also responsible for marketing the sale. Nationwide will retain a 10% commission on all items sold. They will not charge any fee for the transportation of the vehicles or other items to their facility. The cost of removing City decals from the patrol vehicles is handled at a flat rate of $50 per car. Painting is only required if after the removal of the logo the vehicle is still identifiable as a police vehicle. The firm also handles all DMV paperwork on the transfer ofthe vehicles. The City has had good experience with the prices received on items auctioned by Nationwide in the past, although it is recognized that past sales prices cannot be a guarantee of future sales. Staff has also identified a benefit from using one firm to auction both the vehicles and the unclaimed property. The firm has provided a relatively low commission rate for the miscellaneous items. The last Auction was . approximately 2 years ago and it is important to purge storage areas as soon as possible. Staff would request that the City Council adopt the attached resolution which declares the vehicles as surplus and authorizes the use of Nationwide Auction Services for all appropriate surplus and unclaimed property currently held by the City. . "1_ /' , ... RESOLUTION NO. - 99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* . DECLAlUNG SURPLUS PROPERTY WHEREAS, the City Manager has determined that certain police vehicles and property is no longer needed for City purposes; and 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 Police Department also has various items of unclaimed property which under state and local laws provide that it may now be auctioned; and - WHEREAS, consolidating the sale of all items is a cost effective means to obtain auction services. NOW, THEREFORE, BE IT RESOLVED that the following police vehicles are declared surplus property to be sold at auction: CAR NUMBER MODEL YEAR MILEAGE CONDITION Dl Ford Crown Victoria 1995 77 ,944 Operable D5 Ford Crown Victoria 1995 80,228 Operable D7 Ford Crown Victoria 1995 84,591 Operable D9 Ford Crown Victoria 1995 79,342 Operable D15 Ford Thunderbird 1990 114,308 Inoperable Asset Seizure Mercedes Benz 1984 Operable . BE IT FURTHER RESOLVED that the City Manager and/or his designee shall also be authorized to arrange for the auction of other unclaimed property as well as 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 a Nationwide Companies pursuant to an agreement between the City of Dublin and Nationwide dated November 8, 1993. PASSED, APPROVED AND ADOPTED this 16th day of March, 1999. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: . City Clerk EXHIBIT 1 G:\AG ENDA \RESOS\AUCTIN99.DOC