Report Prepared by: Julio Marquez, Purchasing Supervisor, Purchasing Division
Title
SUBJECT: Authorization to Donate a Surplus 2003 Scott Travel Trailer to the Merced County Food Bank
REPORT IN BRIEF
Considers providing authorization to donate a surplus 2003 Scott Travel Trailer previously used by the Fire Department for public education to the local non-profit organization, the Merced County Food Bank.
RECOMMENDATION
City Council - Adopt a motion authorizing the donation of a 2003 Scott Travel Trailer, which has already been deemed to be surplus property by City Council, to the Merced County Food Bank and allowing the City Manager or Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or
2. Deny; or
3. Continue to a future council meeting, to be determined by motion of the City Council.
AUTHORITY
City of Merced Charter, Section 200
Merced Municipal Code Section 3.04.370- Surplus Materials, Supplies and Equipment
CITY COUNCIL PRIORITIES
N/A
DISCUSSION
On February 5, 2018, the Merced City Fire Department obtained approval of the City Council to dispose of a 2003 Scott Travel Trailer retrofitted for public education fire scenarios through a public surplus auction pursuant to Merced Municipal Code section 3.04.370. The value of the trailer had been determined to be no more than $3,000 by Mobile Concepts in September 2017. This trailer was originally obtained with grant funds provided by FEMA. As part of the grant requirements, staff notified FEMA of the City’s intention to sell the trailer.
After receiving City Council approval to sell the trailer, it was estimated that the trailer would sell at auction for more than $5,000 based on its current generally good condition and the number of people who have shown interest in buying it. Should the trailer sell for over $5,000.00, federal grant guidelines state that the City must reimburse the grantor 70% of the funds recovered in the sale. This would require the City’s Purchasing and Finance Departments to dedicate staff resources towards researching all pertinent federal grant guidelines in order to ensure full compliance. This could cost the City more money in staff time than the 30% of the proceeds it would retain from the sale of the trailer.
Therefore, Purchasing and Finance staff strongly believe that donating the trailer to a local non-profit organization would be more beneficial to both the City and the community. By making this donation, the City could reaffirm its commitment to both fiscal responsibility and to helping a local community non-profit organization. On November 7, 2018, staff contacted a Grant Management Specialist with FEMA to discuss the possibility of donating the trailer to a local nonprofit, rather than selling it at a public surplus auction. Following the discussion, staff received approval from FEMA to donate the equipment to a local nonprofit.
A few local non-profit agencies had originally shown interest in the trailer. They were informed that it is not suitable for camping or recreational activities. After inspection of the trailer, most of the agencies realized it would require additional resources in order to be used as they would like so they were no longer interested. The Merced County Food Bank is a local non-profit organization that has proven to be in good legal standing within our community. They desire to receive the trailer as a donation from the City with the intention of using it as a mobile food bank.
Pursuant to Merced Municipal Code Section 3.04.070, the disposal of surplus property is usually handled via a public surplus auction. However, FEMA has provided the City with authorization to donate the trailer to a non-profit organization rather than selling it at a public surplus auction. Pursuant to City Charter, section 200, the City Council has the power and authority to act on matters concerning its municipal affairs. Accordingly, the City Council may allow the donation of surplus property to the Merced County Food Bank on the basis that this non-profit organization provides a substantial service and benefit to our community that outweighs the value of the sale of the property.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Release Indemnity Agreement
2. Admin Report - Surplus Property
3. Mobile Concepts - Appraisal Statement