City Council Agenda Report
Meeting Date: July 16, 2024
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Management Analyst
Subject
Sale of Surplus Vernon Public Utilities Vehicles to Petrelli Electric, Inc.
Recommendation
Approve and authorize the City Administrator to execute the Purchase and Sale Agreement with Petrelli Electric, Inc. (Petrelli Electric), in substantially the same form as submitted, for the sale of one 1989 Lorain LCD 150 Crane and one 1983 Hyster H40XL Forklift for a combined price of $10,600.
Background
Vernon Public Utilities (VPU) and the Public Works Garage staff have assessed VPU’s vehicle fleet to identify vehicles that need to be replaced. The evaluation involved assessing the age, usage, maintenance costs, and safety of the vehicles and equipment. After a thorough review, it was determined that Vehicle No. L1026, a 1989 Lorain Crane, and Vehicle No. L1014, a 1983 Hyster H40XL Forklift owned by the City, should be placed in surplus. Despite being used for less than 2,500 hours, both vehicles failed safety inspections due to leaks, and reliable repairs are not available. These issues compromise operator and crew safety and significantly increase VPU’s maintenance costs. As a result of this sale, the City is released of any liability due to the condition of the vehicles. Therefore, VPU, in coordination with the Public Works Garage Division, determined that the vehicles should be placed in surplus, as they are no longer suitable for use by the Department. Consequently, the City’s Purchasing Division, responsible for salvaging surplus City property, deemed that Vehicle No. L1026 and Vehicle No. L1014 are no longer economically suitable for further City use.
Pursuant to the City’s Purchasing Manual parameters related to salvaging surplus City property, salvage property that has no functional use may be sold or donated. Petrelli Electric has confirmed its desire to enter into a Purchase Agreement with the City to procure the aforementioned surplus vehicles. Petrelli Electric is the current VPU contractor providing highvoltage electric systems service, maintenance, and utility support to Vernon Electric and Fiber Systems. Accordingly, VPU is recommending that the City Council approve the sale of one 1989 Lorain LCD 150 Crane (VIN #: 1262618A) and one 1983 Hyster H40XL Forklift (VIN #:
A177BO3OO5D) to Petrelli Electric for a combined price of $10,600. The vehicles will be sold at market value, with the proposed cost determined by an outside equipment evaluator, Proven Truck and Equipment Inc., who considered the age of the vehicles and related condition. Findings were reviewed and confirmed by the Finance Department.
Considering the age, limited usage, high maintenance costs, and safety concerns, including failed inspections, of the surplus vehicles, it is recommended that the City Council approve the sale of VPU's surplus vehicles and authorize the City Administrator to execute the necessary Purchase and Sale Agreement.
The proposed agreement with Petrelli Electric has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The sale of the surplus vehicles will result in $10,600 in additional revenue to the Electric Fund which will be credited to Miscellaneous Revenues Account No. 055-460-565-466900.
Attachments
1. Purchase and Sale Agreement
2. Proven Truck & Equipment Price Evaluation