REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 10, 2024
FROM
NOEL CASTILLO, Director, Department of Public Works - Transportation
SUBJECT
Title
Surplus and Sale of Equipment
End
RECOMMENDATION(S)
Recommendation
1. Declare that the following fully depreciated equipment is surplus and no longer meets air quality requirements, has reached its useful life, and/or is no longer necessary to meet the needs of the Department of Public Works and has been replaced:
a. Equipment No. 051093, a 2008 Caterpillar 140M Motor Grader (Vehicle Identification Number CAT0140MPB9G00203), with an estimated value of $60,000.
b. Equipment No. 051091, a 2008 Caterpillar 140M Motor Grader (Vehicle Identification Number CAT0140MAB9M00460), with an estimated value of $60,000.
c. Equipment No. 008708, a 2009 International Patch Truck (Vehicle Identification Number 1HTWEAAR79J126820), with an estimated value of $10,000.
d. Equipment No. 008747, a 2004 International Patch Truck (Vehicle Identification Number 1HTWBAAR14J093055), with an estimated value of $10,000.
e. Equipment No. 008756, a 2006 International Patch Truck (Vehicle Identification Number 1HTWAAAR76J374993), with an estimated value of $10,000.
2. Authorize the sale of the fixed assets identified in Recommendation No. 1, to be coordinated through the Purchasing Department, Surplus Property Division.
3. Authorize the Director of Fleet Management to execute all necessary documentation to transfer title.
4. Authorize the Department of Public Works to retain the proceeds from the sale of the fixed assets identified in Recommendation No. 1 and deposit such proceeds into the Transportation Equipment Fund to offset costs of future equipment purchases.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total value of the fully depreciated equipment is estimated to be $150,000, collectively, based on proceeds from recent auctions of similar fixed assets. The funds raised by the sale of the fixed assets identified in Recommendation No. 1 will be used to pay any applicable auction fees. Any remaining funds will be returned to the Department of Public Works (Department) Transportation Equipment Fund (6650002008) to assist in the purchase of future equipment, as needed.
BACKGROUND INFORMATION
The Department owns and operates a number of vehicles and heavy equipment pursuant to its mission of maintaining County roads. Department staff has determined that it is no longer economically beneficial to the Department to continue to maintain and/or repair the surplus assets identified in Recommendation No. 1.The surplus assets, having surpassed 16 years of service, have exceeded their expected lifespan and are costly to maintain. Disposing of these surplus assets aligns with the County and Chief Executive Officer’s goals and objectives to improve County government operations and to operate in a fiscally-responsible and business-like manner, as it is more efficient and cost effective to maintain a newer fleet.
The equipment has been replaced by newer units, which produce fewer emissions in accordance with mandates from the California Air Resources Board. Selling older units is necessary to maintain compliance with South Coast Air Quality Management District’s regulations. Heavy equipment that does not meet air quality standards must be sold out of state. Upon Board of Supervisors approval, the equipment will be sent to the County’s contracted auction vendors for disposition, coordinated through the Purchasing Department, Surplus Property Division in accordance with the Standard Practice No. 12-18 SP1.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on August 15, 2024; Purchasing (Dewayne Ford, Assistant Director, 387-2072) on August 15, 2024; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on August 19, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer 387-5423) on August 23, 2024.