ITEM 4. 5
CITY MANAGER' S REPORT
AUGUST 14, 2023 CITY COUNCIL REGULAR MEETING
ITEM: DECLARE CERTAIN VEHICLES AND EQUIPMENT
SURPLUS PROPERTY AND AUTHORIZE THEIR
DISPOSAL
RECOMMENDATION: Adopt a Resolution Declaring Certain Vehicles and Equipment Surplus Property and Authorizing Their
Disposal
SUMMARY:
The City currently has four surplus vehicles and various furniture and equipment that have reached their useful life, have been replaced, or the repair costs exceed their fair market value.
The City' s policy regarding disposition of surplus property allows for surplus property to be sold at auction. In the event that the auction is unsuccessful, the City may choose to donate, discard or recycle the property. Pursuant to Council Resolution 21- 4831, the City Council declared surplus property with a value of $ 1, 500 or less to be of de minimus value and any disposal therefore, does not create a gift of public funds. Council adopted a donation policy through the same Resolution to allow the City to donate surplus City vehicles with a value of less than $ 1, 500 to local nonprofits or charities. Any vehicles with a failed auction sale, will be returned to the City, so the City can begin the donation process to local non- profits or charities.
BACKG ROU N D:
The City of Lathrop updated its policy regarding disposition of surplus vehicles on December 1, 2014 pursuant to Resolution 14- 3848 and staff recommends that the items listed on Attachment B" be declared surplus property in accordance with this policy. All of these items have reached their useful life, have been replaced, or the cost of repair exceeds their value. Each item listed on the attachment has a brief description of the condition of each item. All of the listed items are ready to be declared as surplus property for sale, recycling, or disposal.
According to City policy, if the market value of the surplus items is greater than 5, 000, the Purchasing Officer shall present the listing of such assets to the City Council for action regarding their declaration as surplus. It has been determined that these items collectively could have a value greater than $ 5, 000.
Surplus vehicles will be sold at public auction by Nationwide Fleet Services pursuant to an existing contract. In the event that the property remains unsold, the City Council may choose to donate, discard or recycle the property. Pursuant to Council Resolution 21- 4831 the City Council declared surplus property with a value of $ 1, 500 or less to be of de minimus value and the donation thereof does not create a gift CITY MANAGER' S REPORT PAGE 2
AUGUST 14, 2023 CITY COUNCIL REGULAR MEETING
RESOLUTION DECLARING CERTAIN VEHICLES AND EQUIPMENT SURPLUS
PROPERTY AND AUTHORIZING THEIR DISPOSAL
of public funds. Council adopted a donation policy through the same resolution to allow the City to donate surplus City vehicles with a value of less than $ 1, 500 to local non- profits or charities. Surplus equipment will be discarded or recycled if all other disposal methods are not successful.
REASON FOR RECOMMENDATION:
Pursuant to City policy, at least once a year each Department Head shall conduct a review of inventory, goods and supplies utilized by that department and shall determine what items have become surplus. City stafF has gathered a list of surplus items from all department' s which are included in Attachment " B". These surplus assets have been reviewed and determined that their collective value could be greater than $ 5, 000. In addition, once the surplus items are discarded, it will help each department maintain storage space.
FISCAL IMPACT:
Any net revenues from the sale of these items will be returned to the City' s general fund.
ATTACH M ENTS:
A. Resolution declaring certain vehicles and equipment surplus property and authorizing their disposal
B. Surplus Inventory List
CITY MANAGER' S REPORT PAGE 3
AUGUST 14, 2023 CITY COUNCIL REGULAR MEETING
RESOLUTION DECLARING CERTAIN VEHICLES AND EQUIPMENT SURPLUS
PROPERTY AND AUTHORIZING THEIR DISPOSAL
APPROVALS:
o v u>23
Tany shan illamas Date
Managemen Analyst I
g /
Cari Ja s Date
Directo of Finance
g l, av
Salvador Navarrete Date
City Attorney
S- 2' 3
St en Salvatore Date
City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
DECLARING CERTAIN VEHICLES AND EQUIPMENT SURPLUS PROPERTY AND
AUTHORIZING DISPOSAL
WHEREAS, the City of Lathrop has a policy that allows for the disposal of equipment and inventory with City Council approval; and WHEREAS, the City has surplus vehicles and equipment, which have reached their useful life, are inoperable, or the cost of repairs exceed their value; and WHEREAS, the City Council has reviewed the list of surplus items in which are to be auctioned, donated after meeting Donation Policy criteria, recycled, or discarded;
NOW, THEREFORE, BE IT RESOLVED that the City Council declares the items, as listed in Attachment B", to be surplus property and authorizes the City Manager to dispose of the surplus equipment and inventory.
The foregoing resolution was passed and adopted this 14t" day of August, 2023, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMENT B
Surplus Inventory List
AUGUST 14, 2023
Surplus Type: Vehicle/ Other
Surplus Reason Codes: A-No longer needed 6- Reached useful life C- Replaced D- Cost to repair is higher than value E- Damaged/ not working
Surplus
Reason
Code Description Year/ Make/ Model Vin/ Serial Number Quantity Dept.
E Truck 2008 Chevrolet Silverado I GCHK29K58E I 12837 I PR& M B SUV 2015 GMC Terrain 2GKFL5E30F6409751 I PR& M
B SUV 2015 Chevy Tahoe I GNLC2EC4FR532091 I PR& M
B Light Trailer Magnum MLT T3060M I 102935 I PR& M
Surplus Type: Equipment
Surplus Reason Codes: A-No longer needed B- Reached useful life C- Replaced D- Cost to repair is higher than value E- Damaged/ not working
Surplus
Reason
Code Description Year/ Make/ Model Vin/ Serial Number Quantity Dept p
Tow Behind Air Compressor
I 991 Sullivan D 185Q5 I 0616 I PR& M
Trailer
ATTACHMENT B
Surplus Inventory List
AUGUST 14, 2023
Surplus Type: Furniture
Surplus Reason Codes: A- No longer needed - Reached useful life C- Replaced D-Cost to repair is higher than value E- Damaged/ not working
Surplus
Reason
Code Description Year/ Make/ Model Vin/ Serial Number Quantity Dept C Computer Desk I CDD
C Wooden Chair I CDD
C Upper Cabinets I CDD
C Round Table I CDD
A Wooden Book Case I CDD
C Mobile Plan Holder 2 CDD
A Wood 2- drawer File Cabinet I CDD
A Wood 3- drawer File Cabinet I CDD
B Chairs with Racks 75 PR& M