TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director
DATE: June 28, 2024
SUBJECT: AUTHORIZATION TO DISPOSE OF SURPLUS PROPERTY
BY PUBLIC AUCTION PER MUNICIPAL CODE SECTION
2.06.06 STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
BACKGROUND
As part of the FY 2023-24 budget, the City Council appropriated funds for the purchase of a new skid-steer loader for the Parks and Public Works Department. The existing piece of equipment was originally purchased in 1999, has required significant repairs in recent years, and has reached the end of its useful life. As the new skid-steer loader was ordered in December 2023 and received in May 2024, and the original piece of equipment from 1999 is still out of service, the City has determined that it is functionally obsolete and no longer necessary for the City’s fleet. As such, the City Manager has declared this item to be surplus. See below for equipment details:
Department Make Model Year ID #
Public Works Bobcat Model 763 1999 512250937
DISCUSSION
Upon determining that an item is surplus, the City Manager shall determine how the property shall be disposed of. These options include:
Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
1. Transfer to another department
2. Trade in for the acquisition of replacement item(s)
3. Sale at public auction
4. Sale at auction to be conducted as part of a city fundraising event
5. Sale by negotiation
6. Disposal as trash
Staff recommends proceeding with sale at public auction (option 3), as that option best serves the interests of the City. Section 2.06.06 (D) of the San Marino Municipal Code provides that “Disposition of surplus city property by sale at public auction, negotiation, or sale by auction at a city related fundraising event shall be approved by the City Council prior to the time of the sale.”
FISCAL IMPACT & PROCUREMENT REVIEW
Staff estimates that auction sale prices for the subject items may be as much as $5,000 total (based on Kelly Blue Book pricing). However, it should be noted that auction prices have some degree of unpredictability, so the revenue may exceed or fall short of that amount by a few thousand dollars. The sale of the vehicles and equipment is not a budgeted revenue for FY 2023-24. All proceeds from the auction of these items will be deposited in the “Gain/Loss on Disposal of Asset” revenue line item within the General Fund (Account # 101-00-3703-0000), as per Section 2.06.06 (E) of the San Marino Municipal Code.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the City Council approve the disposal of surplus vehicles and equipment via public auction pursuant to Municipal Code Section 2.06.06.
If the Council concurs, an appropriate motion would be:
“I move to approve the disposal of surplus equipment as listed in the staff report via public auction, pursuant to Municipal Code Section 2.06.06.”