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HomeMy WebLinkAbout06 PURCHASE EQUIPMENT/DECLARATION OF SURPLUS EQUIPMENT FOR PUBLIC AUCTIONAGENDA REPORT Cr LIN MEETING DATE. MARCH 5 2013 TO JEFFREY C PARKER, CITY MANAGER Agenda Item Reviewed. City Manager Finance Director FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT AUTHORIZATION TO PURCHASE EQUIPMENT AND DECLARATION OF SURPLUS EQUIPMENT FOR PUBLIC AUCTION SUMMARY Staff is requesting City Council authorization to purchase one utility truck for use by the Public Works Department, Water Services Division. In addition, the City Council is requested to declare certain equipment surplus in accordance with Section 1626a (2) of the Tustin City Code and authorize their sale at public auction. RECOMMENDATION It is recommended that the City Council: Adopt Resolution No 13 -11 authorizing the State of California Department of General Services to purchase one (1) Ford utility truck from Downtown Ford Sales of Sacramento, CA in the amount of $54,968.25, Declare in accordance with the Tustin City Code Section 1626a (2), the attached itemized list of equipment as surplus and not required for public use and authorize the sale of the equipment listed at the next available public auction, applying net proceeds to applicable City Revenue fund. FISCAL IMPACT The State General Services contract price is $54 968.25. The price includes all taxes, applicable fees, accessories, delivery and early $500 payment discount. Sufficient funds have been budgeted and appropriated in the Fiscal Year 2012 2013 Equipment Replacement Fund (Account 184- 80 -00- 9710). DISCUSSION Unit number 7012 is an 11 year old vehicle with nearly 45 000 miles and 13,000 hours of extended idle time while serving as a traffic safety apparatus for crews working within the travel way The vehicle is utilized to assist water service personnel in the repairs and maintenance of waterlines, metered service connections, interties and turnouts, fire hydrants, and valves. It is scheduled for replacement in 2014 However to remain in service, Air Quality Management District (AQMD) regulations require this vehicles diesel engine to be retrofitted with a particulate filter at a cost of $17 000 Taking this into consideration, along with the vehicles age, idle time, salvage value and reuse of the existing utility bed (estimated cost savings of $9 000), staff is recommending replacement. Authorization to Purchase Vehicle March 5, 2013 Page 2 In accordance with the City's purchasing policy new vehicles and equipment can be purchased through the State General Services contract due to the volume discounts received by the State. However staff also contacted local dealers to obtain competitive pricing for like vehicle (i.e. Ford F550 1 '/2 ton) Unfortunately local pricing was not competitive with State contract rates. The total cost $54 968.25 includes all taxes, applicable fees, rebates, delivery and early payment discounts. State contract pricing includes a $500 discount for payment within 20 days, state tire fees, delivery and optional equipment. Secondarily staff is requesting the declaration of the old vehicles as surplus. Section 1626a (2) of the Tustin City Code requires the City Council to find that these surplus items are not required for public use. The attached report of surplus equipment to be sold at public auction specifies the estimated value at $7 800 6,klll� Stack, P.E. Public Works /City Engineer Attachment(s): 1 Resolution 13 -11 2. Surplus City Equipment List S (City Council Items12013 Council IlemsWuthodzabon to Purchase Equipment FY 12 -13 (2).docu ATTACHMENT 1 RESOLUTION NO 13 -11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING THE DEPARTMENT OF GENERAL SERVICES OF THE STATE OF CALIFORNIA TO PURCHASE CERTAIN ITEMS WHEREAS, the City has need to purchase various material, supplies and equipment in order to conduct the operations of the City- and WHEREAS Section 1624 Item C of the Tustin Municipal Code authorizes the State of California to purchase materials, supplies, and equipment if it can be acquired more cheaply or efficiently by the state, NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin, California, does hereby authorize the Procurement Division, Department of General Services of the State of California, to purchase one Ford utility truck for and on behalf of the City of Tustin pursuant to Section 10324 of the California Public Contract Code and that Mr Jeffrey C Parker City Manager is hereby directed to sign and deliver all necessary requests and other documents in connection therewith and for and on behalf of the City of Tustin. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 5th day of March 2013 Elwyn A. Murray Mayor ATTEST Jeffrey C Parker City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Jeffrey C Parker City Clerk and ex- officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five, that the above and foregoing Resolution No 13 -11 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 5`h day of March, 2013 by the following vote. COUNCILMEMBER AYES COUNCILMEMBER NOES COUNCILMEMBER ABSTAINED COUNCILMEMBER ABSENT JEFFREY C PARKER, City Clerk ATTACHMENT 2 REPORT OF SURPLUS CITY EQUIPMENT TO BE SOLD AT PUBLIC AUCTION UNIT MODEL SERIALNIN NUMBER ESTIMATED NUMBER YEAR DESCRIPTION VALUE 7012 2003 Ford F 550 1FDAF56P13ED86189 $ 3,500.00 5621 2002 Dodge Utility Truck 3B6KC26Z32M279773 $ 1,500.00 5618 1985 Ford Utility Truck 1FTHF35L1FPB37728 $ 80000 5660 2005 John Deere Mower TC2653D121087 $ 500.00 3008 1998 Ford Van 1FBSS31L3WHA25714 $ 1 000.00 3007 1991 GMC Van 1GTCM15ZXMB527424 $ 500.00 ESTIMATED VALUE $ 7,800.00