Item Coversheet

Agenda Item - 2.b.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Patricia Song
Dept.:City Manager 

Dept.: Finance 
Subject:

Approval of the sale of vehicles and miscellaneous fire supplies to the Orange County Fire Authority.  (Revenue Amount:  $71,000) (Action Item)

Date:9/10/2019

OBJECTIVE

For the City Council to approve the sale of two Ford F250 trucks and miscellaneous fire fighting equipment, parts, and supplies to the Orange County Fire Authority.

BACKGROUND

Effective August 16, 2019, the City transitioned its fire protection and emergency medical services to the Orange County Fire Authority (OCFA).  With the transition, various fire vehicles and miscellaneous fire fighting equipment, parts, and supplies became obsolete for the City.  Surplus supplies and equipment will be disposed of by auction, trading in for new equipment, or disposed in trash.

DISCUSSION

OCFA has requested to purchase two 2017 Ford F250 trucks that were currently being used by the Fire Department.  In addition, since the maintenance of Fire equipment and routine facility maintenance will be the responsibility of OCFA, the City no longer has a need for miscellaneous parts and supplies (i.e., lights, brake pads, pumps, gauges, etc.) that have been purchased and kept on supply over the years.

 

The two vehicles were purchased in October 2016 in the amount of $38,940 each for a total of $77,880.  OCFA has offered to purchase the vehicles for a total of $66,000, which is within the Kelly Blue Book trade-in value range, and $5,000 for the miscellaneous parts and supplies.  The price OCFA has offered for the vehicles and miscellaneous parts is deemed reasonable and exceeds the estimated proceeds from auction.

FINANCIAL IMPACT

The sale of the vehicles and miscellaneous parts and supplies will provide $71,000 one-time revenue to the General Fund.

RECOMMENDATION

It is recommended that the City Council:

  • Approve the sale of the vehicles and miscellaneous parts and supplies in the amount of $71,000 to OCFA; and

 

  • Authorize the City Manager to execute any documents necessary to effectuate the sale.

 

By:  Ann Eifert, Budget Manager