Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Declaration of Surplus for Neighborhood Services Department Fixed Asset Item #26147-000
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Submitted By: Oswmer Louis, Project Manager, Neighborhood Services Department
Strategic Plan Link: The City’s Mission to utilize fiscal responsibility.
Executive Summary (General Business): Declaration of fixed asset item #26147-00 (2019 Ford F-250) as surplus property to utilize it as a trade-in vehicle.
Presentation Information: N/A
Staff Recommendation: Move that the Council approve the surplus declaration for fixed asset item #26147-00 (2019 Ford F-250) to be used as a trade-in.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the surplus declaration of fixed asset item #26147-00 (2019 Ford F-250).
2. Move that the Council not approve the surplus declaration of fixed asset item #26147-00 (2019 Ford F-250) and provide staff with direction.
Background: Policy #19-01ccd for capital assets states: The City Manager or designee shall be authorized to approve all sales where the net revenue to the City does not exceed $15,000. All sales exceeding $15,000 in net revenue to the City will be approved by City Council, prior to completing the sale or conducting the sales event.
NSD recently received a trade-in value of $30,500 from Gilbert Ford for fixed asset item #26147-000, a 2019 Ford F-250. The trade-in quote has been included as an attachment. The department is seeking to surplus this vehicle because it is not currently serving our needs. Originally the vehicle was purchased for the towing capacity necessary to transport a 26-foot enclosed trailer that the department acquired. With the large enclosed trailer recently being transferred to the Office of Solid Waste due to limited use, the F-250 is no longer an ideal vehicle for Code Officers to utilize on a daily basis due to factors such as greater fuel consumption, increased difficulty getting in/out of the truck due to ride height, and the overall size of a Ford F-250 in comparison to standard full-size trucks such as the Ford F-150.
Issues/Analysis: NSD is looking to utilize the trade-in value of the F-250 towards reducing the cost of purchasing a new vehicle during the 24/25 fiscal year. This would allow the department to improve the age of our fleet and bring in a new vehicle that aligns better with our fleet needs.
Financial Information: The Ford F-250 was originally purchased in 2019 for $29,470, which excluding the cost of fuel and preventative maintenance, would net the department a little over $1,000 with no value being lost in 5 years if we are approved to move forward with trading the vehicle in.
Special Consideration: The department has successfully utilized surplus trade-ins to reduce the cost of purchasing new vehicles in the past. Last fiscal year, 3 high-mileage, low-value vehicles were used as trade-ins to reduce the cost of purchasing a new vehicle by $23,500. Purchase of the new vehicle will be made in accordance with the City’s Alternative Vehicle Purchasing Plan, which was approved by the City Council at the October 14, 2024 meeting and is effective through Fiscal Year 2024-25.
Location of Project: N/A
Attachments: Gilbert Ford offer to purchase New F-150 with City’s F-250 trade-in value included; City’s Original F-250 purchase order.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: N/A
Legal Sufficiency Review:
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