Title
A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF HUDSON IN 2020 TO SELL BY INTERNET AUCTION PERSONAL PROPERTY, INCLUDING MOTOR VEHICLES AND OTHER PROPERTY REFERENCED IN REVISED CODE §721.15 WHICH ARE NO LONGER NEEDED FOR PUBLIC USE OR ARE OBSOLETE OR UNFIT FOR THE USE FOR WHICH THEY WERE ACQUIRED.
Brief Description: Staff is requesting permission to use govdeals.com and other similar services to dispose of unneeded, obsolete or unfit equipment. This is a required annual renewal of agreement for Govdeals online auction services.
Body
Legislative History
Ohio Revised Code, Section 721.15 allows use of internet auctions to dispose of unneeded, obsolete or unfit property if the municipality adopts, each calendar year, a resolution expressing that intent. Council has passed resolutions annually beginning in 2007 to allow use of govdeals.com.
Purpose & Explanation
The costs associated with an annual public auction are a commission (sliding scale of 7-12% depending on auction proceeds) and approximately $1,000-$1,500 in overhead (advertising and administrative support). There are also intangible costs associated with the storage of surplus equipment and loss of value due to deterioration of equipment during the waiting period.
Govdeals.com allows sales to registered entities (including government entities and private individuals) through an online auction of items with a reserve (low price) set by the seller. The fixed sales commission and administration cost for 2020 will be 12.5% which is paid by the buyer. The City receives a check from Govdeals for all proceeds.
Auction sales from January 1, 2019 through October 25, 2019, totaled $110,445.84 for the Public Works Department and $639.00 for the Fire Department.
The City has had a very positive experience selling aged vehicles, equipment, apparatus and various other items on govdeals.com. Staff is requesting a resolution be adopted for calendar year 2020 as we anticipate vehicles, equipment, and other items will be available for public auction.
During 2020, based on a request from HCTV, staff wishes to explore the sale of highly technical items, including obsolete cable television equipment on other online auction sites to reach a different audience. For example, Govdeals.com is a great asset for vehicles, equipment and office furniture. However, an individual looking for technical equipment would generally find a better selection at other auction sites.
Timing Considerations
With passage of this legislation, staff can begin listing items for sale starting in January 2020.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council adopt the proposed resolution for calendar year 2020 to allow for the sale of unneeded, obsolete or unfit (surplus) items through govdeals.com and other similar services.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager - Operations
Eric Hutchinson, Assistant Public Works Director - Services