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City of San Leandro <br />Meeting Date: October 1, 2018 <br />Staff Report <br />Agenda Section:File Number:18-472 CONSENT CALENDAR <br />Agenda Number:8.C. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for Resolution Declaring Fourteen (14) Vehicles, Twelve (12) Pieces <br />of Equipment, and Other Miscellaneous Items as Surplus and Authorizing the <br />Sale of Said Surplus Assets at a Public Auction. <br />SUMMARY AND RECOMMENDATION <br />Staff recommends the City Council declare certain assets surplus and authorize sale of said <br />items at a public auction. <br />BACKGROUND <br />San Leandro Unified School District receives the first offer of the city’s surplus assets. Based on <br />recent discussions between the Public Works Director and the School District, the Public Works <br />Director has determined there is no interest in purchasing any of the vehicles. Currently <br />out-of-service, the items are being stored at the Public Works Service Center. <br />All vehicles recommended for surplus have reached the end of their useful lives and meet the <br />criteria of the City’s vehicle replacement policy. This includes the number of miles on each <br />vehicle, increasing maintenance costs and other factors. In addition, each unit is fully <br />depreciated. <br />Section 1-6-500 of the San Leandro Municipal Code authorizes the Purchasing Agent to sell <br />surplus items at public auction. If staff’s recommendation is approved, said vehicles will be sold <br />at a public auction by U.S. Auctions on November 2, 2018. Public notice of the auction and <br />auction preview will be posted on the City’s web site. <br />Fiscal Impact <br />The sale of these items at auction generates a moderate amount of one-time revenue. Although <br />there is no guarantee of the revenues that an auction can generate, prior auctions of similar size <br />have seen returns in the range of $118,000 to $124,000. <br />Page 1 City of San Leandro Printed on 9/25/2018