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HomeMy WebLinkAbout11/16/2005 - STAFF REPORTS (26) UA, ;� ALM CITY COUNCIL STAFF REPORT DATE: November 16, 2005 CONSENT CALENDAR SUBJECT: Disposal of Miscellaneous Surplus Items (Non-Capitalized) FROM: David H. Ready, City Manager BY: Procurement SUMMARY The City has accumulated a substantial amount of surplus items over the past several years. The Procurement Ordinance does not provide much flexibility for disposing of surplus items other than by public auction or sealed competitive bid. The requested action will grant greater flexibility to dispose of the non-capitalized portion of this surplus. In addition, staff is requesting that City Council donate a surplus fire engine to the Riverside Community College to be used in their Regional Fire Academy Program. RECOMMENDATION: 1. Adopting Minute Order authorizing staff to utilize "best practices" to dispose of miscellaneous non-capitalized surplus. 2. Adopting Minute Order , approving the donation of a surplus fire engine to Riverside Community College to be utilized in their Regional Fire Academy. STAFF ANALYSIS: The City has amassed a collection of surplus items over the years. These items include a wide range of equipment from calculators to computers, furniture and other miscellaneous items. While some of these items have potential resale value, other items are either obsolete and/or broken and have no residual value. Consent Calendar ITEM 2.0 City Council Staff Report November 16, 2005 -- Page 2 Disposal of Miscellaneous Surplus The City's Procurement Ordinance requires that "property that is no longer needed by any department shall be offered for sale through competitive bids or public auction". Many of the surplus items now on hand were purchased for amounts below the City's capitalization limit of $5000. Consequently, these items are not listed as assets in the City's financial records. Because most of the items that have been identified as surplus have a relatively low resale value or are obsolete and simply need to be trashed, staff is having difficulty disposing of these items through competitive bids or at public auction. In order to provide greater flexibility to dispose of non-capitalized surplus items, staff is requesting that the City Council consider allowing staff to utilize "best practices" of other public agencies. For example, some agencies allow surplus to be disposed of by a variety of means, including some which are non-competitive, that have been deemed appropriate to either return value to the agency of eliminate the expenditure of substantial staff resources to capture negligible returns. The particular means being contemplated at this time include a "yard sale" where staff will set reasonable prices and offer surplus items to the general public on a first-come first-served basis. Staff is also exploring the possibility of using internet auction services, recycling of electronic equipment deemed of little or no value through one of the City's periodic E-waste events, and throwing away surplus materials where conditions warrant (such as broken, unsafe furniture), and throwing away surplus materials where conditions warrant (such as broken, unsafe furniture). In addition to seeking authorization to incorporate best practices for the disposal on non-capitalized surplus, staff is requesting that the City Council consider the donation of a surplus fire engine to the Riverside Community College. The particular fire engine in question is a 1988 Beck 1500 gallon per minute pumper. The Fire Chief received a request for donation of the unit from Riverside Community College's Fire Training Academy. The vehicle has not been a front-line unit since 2000 and was removed from reserve duty in May, 2005. Further, it can no longer be utilized in active service in the United States as it does not comply with NFPA 1901 standards. The Regional Fire Academy would use the unit to train students in pumping operations. While the unit likely has some residual value as a source for spare parts, the donation of the unit to the Fire Academy would provide a regional public safety benefit. Several of the Fire Department's most recent hires received training at the Academy and staff recommends City Council approve the donation of the unit. FISCAL IMPACT: IFinance Director Review: While there may be a slight diminution in the return rep4ived for the non-capitalized surplus items not disposed by bid or auction, it is anticip fed that this action would save City Council Staff Report November 16, 2005 -- Page 3 Disposal of Miscellaneous Surplus a substantial amount of staff resources that would be required to Capture negligible returns of broken, obsolete or waste surplus materials. V1ry / ? ruce J hn on Tr, Butzla -/ Froc ru eme & Contracting Manager Ass tant Ci ger David H. Ready, City Man__ge � Attachments: Minute Orders (2) MINUTE ORDER NO. AUTHORIZING STAFF TO UTILIZE 'BEST PRACTICES" TO DISPOSE OF MISCELLANEOUS UNNEEDED OR OBSOLETE NON-CAPITALIZED SURPLUS. 1, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order authorizing staff to utilize "best practices" to dispose of miscellaneous, unneeded or obsolete non-capitalized surplus, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of November, 2005. James Thompson, City Clerk MINUTE ORDER NO. APPROVING THE DONATION OF A SURPLUS AND OBSOLETE 1988 BECK 1500 GPM FIRE ENGINE TO RIVERSIDE COMMUNITY COLLEGE TO BE UTILIZED IN THEIR REGIONAL FIRE ACADEMY. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order approving the donation of a surplus and obsolete 1988 Beck 1500 GPM fire engine to Riverside Community College to be utilized in their Regional Fire Academy, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of November, 2005. James Thompson, City Clerk