Title
Recommendation to Consent to the Public Utilities Board’s Request to Solicit Bids and Sell One Surplus Small Bucket Utility Vehicle and One Surplus Backup Generator. (Alameda Municipal Power)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Consent to the Public Utilities Board’s Request to Solicit Bids and Sell One Surplus Small Bucket Utility Vehicle and One Surplus Backup Generator
BACKGROUND
Under Section 12-3 (A) of City Charter, Article XII, the Public Utilities Board (Board) has the authority to sell obsolete or unnecessary personal property, subject to the consent of the Council on all sales exceeding ten thousand dollars. In addition, City of Alameda Ordinance No. 2949, Section 2-65, Disposition of Property states that the City Finance Director is responsible for the disposal of unclaimed and surplus property. It is expected that the proceeds from the proposed sale for each item will exceed $10,000.
DISCUSSION
At the Public Utilities Board (PUB) meeting on January 25, 2016, the PUB approved Agenda Item No. 4.H.1 to Authorize the General Manager to Purchase one Small Bucket Utility Vehicle in an Amount Not-to-Exceed of $136,000 from Altec Industries to replace Vehicle 703, a small bucket utility vehicle. Vehicle 703 is a model year 2008 vehicle, which has met the expected use cycle for vehicles of this type and has a vehicle odometer reading that exceeds 84,000 miles. Vehicle 703 has also experienced multiple mechanical failures, which require mechanical maintenance approximately every three months and recharging for diesel emissions control filter after every use versus normally every two weeks. Due to this vehicle’s age, associated repair costs, and recharging requirements, the PUB approved replacement of Vehicle 703. Staff now recommends auctioning Vehicle 703, a small bucket utility vehicle, as surplus
Additionally, Alameda Municipal Power (AMP) has accumulated a backup generator previously used for the head end as emergency backup power for computer servers for the telecommunications business that has previously been divested. After years of no use and no anticipated future use, staff recommends auctioning the backup generator as surplus.
On January 23, 2017 the PUB recommended approval of the sale of the Surplus Small Bucket Utility Vehicle and Backup Generator.
FINANCIAL IMPACT
AMP estimates proceeds from the sale of surplus bucket utility vehicle to be $11,100 and backup generator to be $12,600.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Article XII, Section 12-3 (A) of the City Charter
Alameda Municipal Code Section 2-65 et. seq,
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Consent to the Public Utilities Board’s request to solicit bids and sell one surplus small bucket utility vehicle and one surplus backup generator.
Respectfully submitted,
Elizabeth D. Warmerdam, Interim General Manager
By,
Robert Orbeta, Assistant General Manger
Financial Impact section reviewed,
Elena Adair, Finance Director