TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Erick Lee, Public Works Director
Julie Bondarchuk, Financial Controller
Mario Hernandez, Purchasing Supervisor
Mike Grafton, Equipment Maintenance Supervisor
SUBJECT:Title
Consideration of a Resolution for the Donation (Sale) of up to Five Surplus Police Vehicles to the Town of Pickens, Mississippi (Finance Director Charelian).
A) APPROVE SALE OF SURPLUS VEHICLES
B) ADOPT RESOLUTION NO. 23-0054, AUTHORIZE CITY MANAGER TO EXECUTE AN AGREEMENT
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council consider adopting Resolution No. 23-0054 and approving the sale of up to five surplus police vehicles to the Town of Pickens, Mississippi and authorize the City Manager to execute an agreement.
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FISCAL IMPLICATIONS:
The surplus vehicles have been retired from City service and have an average value of approximately $5,000 - $12,000 each. All export and associated fees for title and licensing will be handled by the Town of Pickens, Mississippi.
BACKGROUND:
The five Police Department vehicles in consideration were replaced as part of the City’s fleet replacement program. The new police vehicles are either now in service or in transition to be in service. Typically, surplus vehicles are sent to auction for the best attainable value as required by the City’s Municipal Code. City Council may waive this requirement.
With City Council approval, the City has previously donated surplus ambulances and property to our sister city, Santa Rosalia, to support their efforts to serve their community. The City has also donated vehicles and equipment to other organizations, including El Camino College, Manhattan Beach Unified School District, Manhattan Beach CERT program, and the Los Angeles County Fire Life Guards. These organizations are typically another public agency or community organization with limited funding sources where the surplus equipment generates a greater benefit to the organization than the surplus value.
DISCUSSION:
Staff has received the attached request from the Town of Pickens for the sale of these surplus vehicles at the price of $1.00 for each vehicle. The Town of Pickens is a small town and currently only has one police vehicle that is shared amongst seven police officers. That one car is also in poor condition and constantly needs repairs. These police vehicles would serve their community to assist in their policing needs.
Municipal Code Section 2.36.180 requires that surplus property be disposed of for the best attainable value, which is typically obtained through public auction. Staff has estimated, based on similar used vehicles (make, model, age, mileage, etc.), that the value of each vehicle is approximately $5,000 - $12,000, which the City will forego by selling to this organization for $1.00 per vehicle. However, the surplus vehicles will have an intrinsic value much higher than that attainable at auction to the Town of Pickens. Therefore, staff recommends that City Council consider approving the sale of up to five surplus vehicles and authorize the City Manager to execute an agreement for the sale.
If approved, staff will coordinate with officials from the Town of Pickens to execute the agreement and arrange transportation for the vehicles. A release of liability will be obtained prior to the sale.
POLICY ALTERNATIVE:
These surplus vehicles can be sold at auction.
PUBLIC OUTREACH:
There is no public outreach required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 23-0054
2. Sale Request by the Town of Pickens, Mississippi