9.b) Staff Report-Surplus PropertyJ
SCAlVDIA
Staff Report
Date of Meeting: November 17, 2015
To: City Council
From: Kristina Handt, City Administrator
Re: Disposal of Surplus Property
Background:
The City's purchasing policy also covers the disposition of surplus property. Pursuant to that policy, the
disposition of any item valued at $100 or more must be preapproved by the City Council. Furthermore,
the City Council must approve of the method of disposition.
Earlier this year the Council approved the purchase of a new fire tanker. The new tanker should be
arriving in the next couple weeks. We do not have inside storage for two tankers and staff is proposing it
be sold.
Issue:
Should the City Council approve of disposing of the old fire tanker? If so, which method of disposal
should be used?
Proposal Details:
Staff is seeking authorization to try and sell the old tanker on either an auction site (Public Surplus) or
through Brindlee Mountain Fire Apparatus.
In the past the City has used GovDeals to sell surplus property. The City was charged a fee of 5% of the
sale price in exchange for the use of their auction site. The buyer also paid a premium to GovDeals.
Recently, staff was made aware of a couple other options to assist with the sale of surplus property.
Public Surplus (www.publicsgrplus.com) is similar to GovDeals, however there is no fee charged to the
City. Instead, the buyer is charged a 7% fee. The auction can be scheduled at any time by the City and for
any length of time. While it is an auction site, the City is able to set a reserve amount. Meaning if the
reserve amount is not met during the bid process, the City does not have to sell to the highest bidder.
Brindlee Mountain Fire Apparatus (www.firetruckmall.com) is not an auction site but acts more like the
classifieds. They charge a fee of 10% on sale items $100,000 or less. In addition to having an item
placed on their website, they have a marketing team that contacts potential buyers (other fire departments
mostly).The City may get a higher price by using them since it is not an auction situation (highest of the
bidders wins) but rather the City can set their price. In exchange for holding out for the higher price, it
may take longer to sell. According to their representative, the average time to sell is 9 months.
Fiscal Impact:
The proceeds from the sale of any funds should be deposited into the Equipment Replacement Fund.
Options:
1) Approve the disposal of the old fire tanker through Public Surplus
2) Approve the disposal of the old fire tanker through Brindlee Mountain Fire Apparatus
3) Approve of disposal of the old fire tanker through some other means
4) Do not approve of the disposal of the old fire tanker.
Recommendation:
Option 1