STAFF REPORT MEETING DATE: July 24, 2012 TO: City Council 75 Rowland Way #200 Novato, CA 94945-3232 (415) 899-8900 FAX (415) 899-8213 www.ci.novato.ca.us FROM: James Berg, Chief of Police PRESENTER: James Berg, Chief of Police SUBJECT: SALE OF DUAL PURPOSE POLICE MOTORCYCLES REQUEST Consider request from G & B Kawasaki to purchase two (2) 2003 Kawasaki KLS400RS motorcycles pursuant to Municipal Code Chapter 2-8.15 Surplus Stock and adopt resolution authorizing the Police Department to sell the motorcycles by negotiated agreement. RECOMMENDATION Adopt resolution. DISCUSSION The Novato Police Department has two 2003 Kawasaki KLS400RS dual purpose police motorcycles that were originally scheduled for replacement in January 2011. The replacement purchase was delayed until July, 2012. Appropriate replacement funds are available for the purchase of the new dual purpose motorcycles. The low bidder for the replacement motorcycles is Suzuki & KTM of Ukiah. During the negotiation of the purchase price of the replacement motorcycles with Ukiah Suzuki they submitted a trade-in offer of $1500 for each of the 2003 motorcycles. G & B Kawasaki of Petaluma was contacted for appraisal values of the 2003 motorcycles and upon learning of our intent to sell/trade the motorcycles, submitted a purchase price offer of $2000 per motorcycle. A sale directly to G & B Kawasaki in lieu of a trade-in with Suzuki of Ukiah will net the City an additional $1000. Chapter 2-8.15(c) of the Novato Municipal Code authorizes the sale of surplus stock by direct negotiated agreement upon written recommendation of the Purchasing Agent and prior approval by resolution of the City Council. The Municipal Code is as follows: cc12_134.docx; 7/17/2012 1 Novato City Council Agenda Staff Report Date: File No.
2-8.15 Surplus Stock. When a department head has determined that supplies, materials, or equipment are no longer in use or have become obsolete, worn out, or scrapped, the purchasing agent shall have authority to: 3 a. Transfer surplus stock to other departments. b. Exchange or trade in all surplus supplies, equipment, and materials. c. Sell by public auction, sealed bid, or agreement with other public jurisdictions all such supplies, equipment, and materials. Upon written recommendation of the purchasing agent and prior approval by resolution of the city council, sell by direct negotiated agreement, or on a consignment basis, such surplus supplies, equipment, and material. d. In the event that specific supplies, materials, or equipment are not sold at the public auction at which they are offered, or are otherwise deemed by the purchasing agent to be worthless, upon written recommendation of the purchasing agent and prior written approval of the city manager, the purchasing agent may dispose of said supplies, materials, or equipment. The City decentralized the Purchasing Department several years ago and that resulted in the elimination of the Purchasing Agent position. The Municipal Code requirement with regards to a written recommendation from the purchasing agent is no longer applicable. Pursuant to Section 3(c), staff is recommending, upon Council concurrence, that the Police Department pursue a negotiated agreement for sale of the 2003 Kawasaki KLS 400RS motorcycles with G & B Kawasaki. FISCAL IMPACT A direct sale of the motorcycles, after negotiated agreement with G & B Kawasaki, will result in an additional $1000 for the city. ATTACHMENTS 1. Purchase Quote from G & B Kawasaki, Petaluma, CA 2. Excerpt from City Code Section 2-8.15 (c) 3. Resolution 2
CITY COUNCIL OF THE CITY OF NOVATO RESOLUTION NO. RESOLUTION AUTHORIZING THE POLICE DEPARTMENT TO SELL TWO 2003 KAWASAKI MOTORCYCLES BY NEGOTIATED AGREEMENT WHEREAS, the City of Novato has established procedures for disposition of surplus stock; and WHEREAS, pursuant to Chapter 2-8.15(c) of the City Municipal Code, with prior approval by resolution of the City Council, the City may sell surplus stock by direct negotiated agreement; and WHEREAS, the police department obtained three bids for the replacement of two (2) dual purpose police motorcycles, and WHEREAS, the low bidder for the new replacement motorcycles offered a tradein value for two (2) 2003 Kawasaki KLX 400 motorcycles in an amount less than that offered by another motorcycle dealer. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Novato hereby authorizes the City Manager or his designate to enter into discussions with G & B Kawasaki to explore the potential sale of the two surplus off-road motorcycles by means of negotiated agreement. * * * * * * I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Novato, Marin County, California, at a meeting thereof, held on the 24th day of July, 2012, by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT: Sheri Hartz, City Clerk Approved as to form: City Attorney of the City of Novato RES/4567; 7/17/2012