HomeMy WebLinkAbout2/7/2001 - STAFF REPORTS (24) DATE: February 7, 2001
TO: City Council
FROM: Procurement Manager and Police Chief
AUTHORIZE DISPOSITION OF SURPLUS PROPERTY VIA WEB-BASED AUCTION
RECOMMENDATION:
It is recommended that City Council authorize participation with The Property Bureau in a
demonstration program utilizing web-based auctions to dispose of excess property collected
during investigations by the Police Department,
SUMMARY:
This action would allow the participation in a 1-year no-obligation demonstration program
with The Property Bureau to dispose of excess property in an efficient, cost effective
manner that will better fit the limitations of storage space and staff time.
BACKGROUND:
The Police Department has maintained an Evidence and Property Room to store items
collected during investigations and found property. After the cases for which the property
has been collected are closed the Police Department disposes of the property(or evidence)
in accordance with polices and procedures established for such purpose. Methods of
disposition include court-ordered destruction of contraband or other evidence, return of
traceable items to property owners, use by the Police Department or City, and sale of
unclaimed property at public auction. The Police Department has traditionally held such
auctions annually in November.
Circumstances have forced the Police Department to look for alternative ways to dispose
of the excess property. Most of the storage space required to hold the excess property has
been reallocated to the new Narcotics Task Force offices in the basement of the Police
building. The remaining storage space must give priority to that property which is being
held for active cases.
The Palm Springs Municipal Code Chapter 11.76 requires the Police Department to hold
unclaimed property for three months. After this time the property is transferred to the
purchasing agent for sale at public auction or use by the City. At least five days prior to
sale at auction notice designating the time and place of sale must be given in a newspaper
of general circulation.
With insufficient space for the property available for disposition the Department would be
forced to conduct auctions more frequently. More frequent auctions are not practical for
several reasons. First and foremost is the additional burden imposed on the Department's
single Property Technician. Preparing for and having an auction are extremely labor-
intensive activities. To run additional auctions would so burden the City's lone Property
Technician that duties required for active cases would suffer. The potential negative
consequences of this situation are many. More frequent, smaller auctions will also tend to
lessen the public interest and therefore reduce the return on such auctions.
Staff has researched alternatives to the Department-held auctions. The solution that
appears to best fit our needs is to have a professional auction house pickup the excess
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Disposition of Surplus Property
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property and to sell it on an"as-is" basis. The City currently disposes of it's surplus vehicles
in this fashion.
Staff recommends that City Council authorize participation in a 1-year no-obligation
demonstration program with The Property Bureau to handle our excess property disposal.
The Property Bureau was selected over other auction houses for the demonstration
program because it best fit the City's needs and goals. The Property Bureau will pick-up
items when called by the City thus relieving the problem of limited storage space. The web-
based on-line format utilized by the Property Bureau maximizes the opportunity for local
residents to participate (as opposed to live auctions at some distant warehouse). City staff
would work with the Property Bureau to ensure that notice of sale is given in accordance
with the requirements of the Municipal Code.
The revenue received from the on-line auctions is shared by the City and The Property
Bureau. On individual items selling for $1000 or less the split is 50150. For items selling
for over$1000 the City will receive 75%and The Property Bureau 25%. The revenue share
is considered fair when considering the increase in participation in an on-line format is
expected to result in greater sales prices,the reduction in staff time and expense(including
overtime) dedicated to in-house auctions.
( R .
HAROLD E. GOOD JAMES HEAZLETT
Procurement Manager Commander, Investigations
APPROVED:
LEE EIGEL /
P ice Chief
APPROVED:
City Manager
ATACHMENT: Minute Order
AM
MINUTE ORDER NO. 6794
AUTHORIZING PARTICIPATION WITH
THE PROPERTY BUREAU IN A DEMON-
STRATION PROGRAM UTILIZING WEB-
BASED AUCTIONS TO DISPOSE OF
EXCESS PROPERTY COLLECTED
DURING INVESTIGATIONS BY THE
POLICE DEPARTMENT.
------------------
I HEREBY CERTIFY that this Minute Order, authorizing participation with The
Property Bureau in a demonstration program utilizing web-based auctions to dispose of
excess property collected during investigations by the Police Department, was adopted
by the City Council of the City of Palm Springs, California, in a meeting thereof held on
the 71h day of February, 2001.
C:
PATRICIA A. SANDERS
City Clerk
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