200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: MARCH 25, 2025
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVE MASTER AGREEMENT FOR LIQUIDITY SERVICES
OPERATIONS, LLC FOR ONLINE SURPLUS AUCTION
SERVICES
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve the following:
1. Contract Number MA# 106-498385 for Online Surplus Auction Services between the City of Anaheim (City) and Liquidity Services Operations, LLC (Liquidity), effective upon all necessary signatures through 5/23/2027; and authorize the Purchasing Agent to execute the contract and all necessary documents related to the Contract in accordance with cooperative MA-017-22010439 between the County of Orange and Liquidity Services Operations, LLC; and
2. Initiate a donation program where surplus items can be donated to Anaheim School Districts and 501(c)(3) non-profits that provide services to Anaheim residents.
DISCUSSION:
The City of Anaheim generates surplus property and obsolete equipment across various departments, including heavy equipment, furniture, vehicles, and scrap metal, yet it lacks an active, formal program for managing these assets. This gap not only hinders internal resource sharing and sustainability practices—where departments could repurpose or redistribute items rather than purchasing new ones—but also limits opportunities for school districts and non-profit organizations to benefit from these resources. Moreover, the absence of a centralized tracking system has led to recurring incidents of theft, compounding the challenges of asset management and resulting in additional financial losses. As a result, many of these surplus items, which could otherwise support community programs and reduce costs, are instead discarded and end up in landfills.
Implementing a structured surplus management system would promote sustainable practices by ensuring that reusable items are properly tracked, repurposed, and diverted from waste streams, thereby supporting both environmental goals and more efficient municipal operations.
Approve Master Agreement for Online Surplus Auction Services March 25, 2025
Administrative Regulation 425 assigns the Purchasing Agent the responsibility for managing the disposition of obsolete or surplus equipment and scrap materials valued at $50,000 or less. Section 1222 of the City Charter allows City Council to authorize a method for sale, transfer, exchange, or conveyance of municipal property at fair market value through bid, auction, or negotiation. The establishment of an online auction platform will align with these regulatory guidelines while providing enhanced security, transparency, and revenue generation.
The proposed online surplus auction service will provide a full-service solution, including pick-up, warehousing, and inventory management, ensuring a streamlined and secure process for asset disposition. This service will mitigate theft and waste by establishing an accountable and structured method for asset tracking, ensuring proper oversight. It will also optimize space utilization by expediting the disposal process, freeing up much-needed storage areas for operational needs. Additionally, implementing an online auction service will maximize the return on surplus property by expanding the City's access to a broader audience of bidders, ensuring competitive market-based pricing.
With the use of this Contract, the City’s main objective is to develop a comprehensive surplus program to have City items reallocated back into use within the City. To complete this objective, the City needs a web-based software platform where City- designated representatives can list their surplus items. Every City employee should be able to view and claim available surplus items for their department from this web-based system.
Under this proposed Contract, the City would also like to initiate a donation program where surplus items can be donated to local Anaheim school districts and a pre- determined list of 501(c)(3) non-profits that provide services to Anaheim residents. This donation program will use the same online software platform and operate in a multi- tiered format. Items that are listed would first appear and be available to City employees for City use for a period of seven (7) days. On the eighth (8th) day, the items would become available to school districts to claim for a period of seven (7) days. On the fifteenth (15th) day, the items would become available for the non-profit groups for seven (7) days. After 21 days, if the items are not claimed, the listing would close, and the City would then determine if the item is an electronic item (e-waste) or non- electronic item. Non-electronic items would be picked up by the Contractor and transported to their facility where the items (s) would be placed for sale as an online public auction. Electronic item(s) would not be sold and will be picked up by the contracted e-waste recycler.
The City does not have a designated surplus warehouse available to store the items nor does it have the manpower and vehicles to transport them. Therefore, City surplus will remain onsite until either claimed internally via Liquidity’s web-based platform or removed by the appropriate contractor.
Approve Master Agreement for Online Surplus Auction Services March 25, 2025
There is no immediate cost to the City as the selected vendor will operate on a revenue- sharing model, wherein a percentage of the proceeds from each sale will be retained by the auction service provider. This structure ensures that the City benefits financially while minimizing administrative burdens and operational costs.
Under this proposed contract, the City will receive 70 percent to 88 percent of the monthly gross revenue generated, providing a financial benefit to City operations. By leveraging an online auction system with comprehensive asset management services, the City will enhance efficiency, security, and financial benefits associated with surplus property disposal.
The proposed contract is fully compliant with City Council Policy 4.0 (f) and purchasing regulations. Utilizing cooperative contracts allows municipalities to maximize resources, improve service delivery, and leverage the collective purchasing power of multiple public sector entities, resulting in significant cost savings to ensure the best value for the City.
Approval of this contract will establish a secure, transparent, and efficient method for managing surplus assets. Implementing an online auction platform with full-service asset management will protect City resources, optimize asset recovery, and enhance fiscal responsibility, ultimately serving the best interests of the City and its residents.
IMPACT ON BUDGET:
The quantities and types of capital assets sent to surplus vary from year to year. Revenue generated from the sale of surplus property and equipment will be deposited in the fund to which the asset belonged.
Respectfully submitted, Concurred by,
Kari Bouffard Deborah A. Moreno
Purchasing Agent Finance Director
Attachment:
1. Proposed Agreement MA# 106-498385