HomeMy WebLinkAbout4.13 Surplus Property Disp
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CITY CLERK
File # Dr:3l[5J[QJ-@[ill
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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:
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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.
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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.
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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.
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RESOLUTION NO. - 99
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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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
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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:
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City Clerk
EXHIBIT 1
G:\AG ENDA \RESOS\AUCTIN99.DOC