Title
A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF HUDSON IN 2013 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: Requesting permission, as required annually to use govdeals.com to dispose of unneeded, obsolete or unfit equipment.
Body
Legislative History
Ohio Revised Code 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. There are further requirements for legal publication of notice of intent as well as requirements for auction details. Council has passed Resolutions beginning in 2007 to allow use of govdeals.com.
Purpose & Explanation
The city of Hudson, like most government agencies, historically has held an annual auction to dispose of surplus equipment. The costs associated with this auction are a commission (sliding scale of 7-12% depending on auction proceeds) and approximately $1,000 in overhead (advertising and administrative support).
There are intangible costs associated with the storage of surplus equipment and loss of value due to deterioration of equipment during the waiting period. Many governmental organizations have turned to online auctions to dispose of surplus equipment; one website in particular is govdeals.com. Similar to ebay, govdeals 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 only cost is a 7.5% commission.
Hudson Fire Department and other City Departments have had very positive experiences selling surplus vehicles and apparatus on govdeals, receiving significantly more revenue than would be expected at auction or with trade-in. Council passed annual resolutions beginning in 2007 to allow the City Manager enter into a seller's agreement with govdeals.com to allow for sale of unneeded, obsolete or unfit (surplus) equipment to be sold by Internet auction. We are requesting a resolution be adopted for calendar year 2013 as we anticipate equipment will be available for sale.
Timing Considerations
Annual Resolution required.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
XX Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends Council adopt the proposed resolution for calendar year 2013 to allow for sale of unneeded, obsolete or unfit (surplus) equipment through internet auctions.
Submitted by,
Anthony J. Bales, City Manager,
Scott N. Schroyer, Asst. City Manager,
Bob Carter, Fire Chief