Issue Statement: Pursuant to State Statute 274.05 - .06  Governmental agencies are authorized to auction surplus/obsolete vehicles and equipment.  The City of Oakland Park’s Purchasing Ordinance Sec. 2-194 states: Disposal of surplus or obsolete property for sums in excess of twenty thousand dollars ($20,000.00) per item shall be made only after approval by the city commission.

The City’s meter replacement practice includes the auction or sale of the replaced meters to the highest bidder for a recovery cost.  At the City’s last meter auction/sale, in March 2018, the high bidder paid the city  $9,250 for around 1,800 meters.  The buyer takes the meters for scrap materials. Over the past several months all of the water meters in the City have been replaced with new smart meters, resulting in a large surplus of  obsolete water meters. With the number of scrap  meters, it is anticipated they may sell  for more than the twenty thousand dollar threshold and as such requires Commission approval. 

Recommended Action: The City Commission adopt a resolution authorizing the auction of surplus water meters, which are estimated to be valued in excess of $20,000.

The City utilizes the contract with Rene Bates Auctioneers, bid by the City of Ft. Lauderdale.  This company has contracts with governments to provide similar services.  This company has also developed an Internet based online auction system that provides many advantages over the traditional “live” auction method.  City labor and material costs are drastically reduced, since we no longer have to prepare the facilities in advance or divert substantial staff time on auction days, such as Garage, Financial Services, Building Maintenance and Purchasing staff.  The pool of potential bidders is increased as they do not have to travel to the auction, nor incur related costs, and many bidders elect not to attend if there is doubt in their minds about potential for successful bids. 

The auction is held over a period of time instead of just one day, allowing more time for potential buyers to bid.  Advertising is enhanced by digital pictures transmitted to bidders, and they still have the option of an onsite inspection prior to submitting a bid.  The City has the option of setting minimum bid amounts on any items.  The online auction system provides a higher response rate and a better return on items.  We are assured that we reach “real” bidders via the auctioneer’s registration list, pre-screening and experience. The cost for this service is 4% of sale proceeds.

The City will receive the revenue from the auction of these surplus materials, which is anticipated to be in excess of $20,000.

The City Commission adopt a resolution authorizing the auction of surplus water meters, which are estimated to be valued in excess of $20,000.