HomeMy WebLinkAbout4.6 Sale of Surplus City VehiclesAGE NDA STATEMENT
City Council Meeting Date: September E8,1987
SUBJECT : Sale of surplus City vehicles
EXHIBITS ATTACHED id!,
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RECOMMENDATION Authorize staff to accept the highest
bids on the 1985 Corvette and the 1974 Datsun and authorize staff
to use the public auction method to sell the 1974 Mercedes.
FINANCIAL STATEMENT :The City will receive $13,026 for the
Corvette and $2,000 for the Datsun upon approval of the high bids
for each vehicle.
DESCRIPTION :At the Council meeting of August 24th the
City Council authorized staff to use the sealed bid method to
sell the three surplus vehicles received from the cooperative
action between the Dublin police department and the Federal
Government. Council also authorized staff to use the public
auction method if the sealed bids were not favorable. -
The City received sixteen bids on the three vehicles. The bids
ranged between $587 - $2000. fear the Datsun, $8000 - $13, 026 for
the Corvette, and between, $1100 and $3501 for the Mercedes.
The Corvette received the greatest number of bids at thirteen,
and the Mercedes the least at femur.
The City previously received three estimates from an auctioneer,
and also estimated values from the US Marshal's office. Those
estimates are shown below along with the high bids for
comparison:
auctioneer
Marshal
High bid
1985 Corvette $14, i 00
$ 19, 85c i
$1.3, 026
197E Datsun 21500
37500
E, 000
1974 Mercedes 7, 500
9,025
3,501
Staff recommends accepting the bids on the Corvette and awarding
the sale to the highest bidder. Since going to auction would cast
the City 10% of the gross sales amount, the net result of the
auction �n could generate less cash to the City than accepting the
bids.
The Datsun might produce more through the auction, but if the
auction produces a gross sales amount of $2, EEE or less ( a
decrease of 11% or more), the City will receive a net amount from
the auction less than from the highest bid. Because of the
closeness of the bid to the breakeven point, staff recommends
accepting the bids on the Datsun.
The Mercedes is a difficult call. After due consideration it
seems prudent to reject the bids on this vehicle and go to
auction. Even if the auction, produces a gross sales amount of
only 75% of the auctioneer's estimate the net to the City will
still exceed the highest bid. In fact the auction could gross as
little as 52% of the estimate and still produce a higher amount
then the highest bid. The added cost should be minimal since the
vehicle has already been detailed.
COPIES TO:
ITME N0. ----- 6 ____--
.SEP 2 81987
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