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    15.    
City Council Regular
Meeting Date: 01/14/2020  

SUBJECT:
SURPLUS PROPERTY
RECOMMENDATION:
Authorize CHP Enterprises doing business as (DBA) Ken Porter Auctions to auction City surplus vehicles and equipment that are currently obsolete with an estimated value of $46,500. 
BACKGROUND/ANALYSIS:
The Finance Department, acting as the Purchasing Agent, has the responsibility for the disposal of surplus property in compliance with the General Purchasing Policy and Procedures Manual, Section IX. Periodically, the Finance Department requests all departments to inventory and prepare a list of all surplus and obsolete items. "Surplus property" is used generically to describe City property, such as but not limited to: materials, supplies, equipment, and vehicles that are no longer needed or useable by the holding department (CHMC § 3.16.120). The City Council must authorize the disposition of surplus property valued over $25,000 based upon recommendations from the Department. The vehicles and equipment shown on Attachment A have been identified as beyond economical repair and are no longer needed by the City.
 
Staff recommends utilizing CHP Enterprises DBA Ken Porter Auctions to surplus/auction the City’s surplus properties listed on Attachment A. The City currently has a five year agreement (A2018-207) with CHP Enterprises DBA Ken Porter Auctions for auctioning services.  
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA regulations (14 California Code Regulations §§ 15000, et seq.) because it constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a “project” that requires environmental review (see specifically 14 CC § 15378 (b)(4-5)).
 
FISCAL IMPACT:
The City receives the proceeds from the sale of items at auction, after vendor commission and repair costs are deducted from the sales price. Proceeds will be credited to the original funding source, and may increase the fund balance in that fund. 
Attachments
Attachment A - Surplus Vehicles and Equipment

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