Title
A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF HUDSON IN 2016 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; AND DECLARING AN EMERGENCY.
Executive Summary: Staff is requesting permission to use govdeals.com to dispose of unneeded, obsolete or unfit equipment. This is a required annul 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), allows an online auction of items with a reserve (low price) set by the seller. The fixed sales commission cost is 7.5% for the Fire Department’s sales. The buyer pays the 12% commission for the Public Works Department’s sales.
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 2016 as we anticipate vehicles, equipment, and other items will be available for public auction.
Auction sales from January 1, 2015 through December 2, 2015, are as follows: Fire Department revenues of $26,981.41 less the sales commission for net proceeds of $24,957.80, and Public Works Department revenues of $45,816 less zero sales commissions for net proceeds of $45,816, with the remaining month of December 2015 open for auction.
Timing Considerations
Emergency Legislation is requested to expedite posting auction items on govedeals.com starting in early January 2016.
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 2016 to allow for the sale of unneeded, obsolete or unfit (surplus) items through govdeals.com.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager - Operations
Eric Hutchinson, Assistant Public Works Director