Agenda #: 7.3
Meeting Date: October 15, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: SURPLUS INVENTORY OF RESIDENTIAL STREET NAME SIGNS.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
Review the following options and provide direction for the disposal of surplus residential street name signs as deemed appropriate.
FINANCIAL IMPACT:
The City will incur costs for the staff time involved in coordinating the approved disposal of the surplus residential street name sign inventory. The exact amount is contingent upon the Council’s preferred option and the resources necessary for implementation.
As presented, only Options 2 and 4 have the potential to generate a small amount of revenue for the City. If all 1,382 residential street name signs are sold at a fixed cost, then there is a maximum value that could be recouped based on the individual unit price and total number sold. Individually, each street name sign has minimal to zero scrap value due to special plastic material covering the metal. Regardless of the option selected, any revenues received will be deposited to the General Fund.
BACKGROUND:
In the early 2000s, the City removed all of the Los Angeles County standard bluecolored porcelain residential street name signs citywide, with forest green-colored signs featuring a custom shape and the City Seal.
On June 7, 2022, the City Council approved Athaco, Inc. to manufacture 680 new residential street name signs and associated mounting hardware for Phase 1 (Residential Areas 1-3). On June 20, 2023, the City Council approved Athaco, Inc. to manufacture 702 new signs and hardware for Phase 2 (Residential Areas 4-7).
The new street name signs follow the City’s current streetscape theme and pallet, including replacing the City Seal with the windmill logo, a white Highway Gothic typeface over a standard green background, and a custom-shaped sign.
The in-house replacement work of all residential street name signs will be completed by the end of November 2024. All of the old street name signs removed under this replacement project are securely stored at City Hall, pending the Council’s direction.
DISCUSSION:
There appears to be interest from residents to acquire the old residential street name signs. Diamond Bar City Code Section 3.24.120 authorizes the Purchasing Manager (City Manager) to dispose of surplus property by auction, sale, recycling or destruction.
The City Council may choose to donate surplus property to another public agency or not-for-profit organization.
Four (4) options have been offered to dispose of the old residential street name signs which are discussed below for consideration and desired direction by the Council:
1. To offer the surplus signs to Diamond Bar residents at no cost to them;
2. To sell the surplus signs to Diamond Bar residents at a fixed cost;
3. For the City Council to donate the surplus signs to a local not-for-profit organization; or,
4. To properly recycle all surplus inventory for its cash value, if any.
The typical logistics for Options 1-2 would include advertisement of the availability of the signs for donation, and coordination by involved staff during the donation period.
Damaged and defaced signs will not be offered. Any signs that remain in the City’s surplus inventory after the donation period will be recycled.
Option 1 is the most expeditious and straightforward approach to transfer these signs from the available inventory to interested customers on a first-come, first-served basis, at no cost. This option would minimize the overall staff involvement beyond those already slated to help facilitate the process.
Option 2 is oriented towards cost neutrality. Similar to Option 1, the signs would be offered to interested customers on a first-come, first-served basis, at a nominal cost (i.e.: $25) to partially offset the implementation costs. It is likely that not all signs will be sold. Any remaining signs at the end of the sale period would be recycled..
Option 3 is to donate the signs to a not-for-profit organization. This is consistent with the City’s previous actions in the early 2000s when the Diamond Bar Community Foundation fundraised by auctioning the LA County standard street name signs. The City Council would need to designate a non-for-profit organization willing to accept the signs. In addition, staff time would be anticipated to coordinate with the organization to assist with the transfer of signs.
Option 4 is to recycle the surplus signs. Because of the special plastic material covering the aluminum signs, the recycling value of the entire inventory could be zero.
It is recommended that the City Council discuss the options and provide direction on these or any other options deemed appropriate.
PREPARED BY:
REVIEWED BY: