Report Prepared By: Julio Marquez, Purchasing Supervisor
Title
SUBJECT: Adoption of a Resolution Authorizing the Sale of One Surplus 2014 Schwarze Street Sweeper Truck to the City of Gustine and Approval of Surplus Equipment Purchase Agreement for a Total of $20,000
REPORT IN BRIEF
Considers adopting a resolution to authorize the sale of one surplus 2014 AutoCar Schwarze A900 Monsoon street sweeper truck (City asset E-1382) to the City of Gustine as is under a Surplus Equipment Purchase Agreement for a total of $20,000.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2024-62, a Resolution of the City Council of the City of Merced, Deeming Certain Equipment of the City to be “Surplus” Property and Authorizing its Sale to the City of Gustine; and,
B. Approving the Surplus Equipment Purchase Agreement; and,
C. Authorizing the City Manager or designee to execute any necessary documents to sell asset E-1382 to the City of Gustine; and,
D. Authorizing the Finance Officer to make any necessary budget adjustments.
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
California Government Code 37350
City of Merced Charter, Article IV, Section 405
Merced Municipal Code Section 3.04.370 Paragraph C
CITY COUNCIL PRIORITIES
As provided for in the 2023-24 Adopted Budget
DISCUSSION
The City of Merced Purchasing Division is currently storing one 2014 AutoCar Schwarze A900 Monsoon street sweeper truck (E-1382) in its surplus inventory at the City’s Container Yard. Unit E-1382 has been deemed as due for replacement by the Fleet Department and has been surrendered to the Purchasing Division by the Streets Department as surplus since January of the current year.
Public Works Director for the City of Gustine Gary Ingraham has since contacted the Purchasing office to inform of his agency’s interest in acquiring this unit. Gustine’s City Manager Soknirorn Than met with City of Merced’s City Manager Scott McBride, Public Works Director Ken Elwin, and Purchasing Supervisor Julio Marquez on Monday May 6, 2024, to negotiate the sale of this unit.
It was agreed that the sale of the unit would be as is for $20,000 pending approval of the attached resolution and purchase agreement by the City of Merced Council via consent agenda. The sale amount is in line with the average starting bid price for this type of equipment in the auction websites that the Purchasing Division uses to sell surplus equipment.
IMPACT ON CITY RESOURCES
Proceeds from the sale of this equipment will be deposited into the City’s Fleet Replacement Sale of Equipment account: 70066020-417006 and will be used for a future replacement of equipment.
ATTACHMENTS
1. Resolution
2. Disposal of Surplus Property Form
3. Surplus Equipment Purchase Agreement