TO: Mayor and Members of City Council
THRU: Jeffrey Yates, Assistant City Manager and Interim CFO
FROM: City of Fayetteville Fleet Department
DATE: February 10, 2025
RE:
Title
Auction of 16 Decommissioned City of Fayetteville Assets
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
The auction of 16 Decommissioned City of Fayetteville assets aligns with Strategic Plan Goal V: Financially Sound City Providing Exemplary City Services
Executive Summary:
Fleet is currently storing 16 City of Fayetteville Assets that have been decommissioned due to being at the end of their useful lifespan. Decommissioned assets are auctioned via GovDeals. However, these assets have potential returns of $30,000.00 or more each via auction and therefore require Council approval prior to auction.
Background:
The 16 Vehicles have met their lifespan via age, milage, maintenance costs, and or hours of use, and were therefore decommissioned. As they have been decommissioned the 16 units are not in use by the City of Fayetteville and have already been replaced in the previous capital outlay. Assets are electronically auctioned once decommissioned to return a fraction of the vehicle costs to the City of Fayetteville General fund or Enterprise fund if the asset belonged to an enterprise funded department.
Issues/Analysis:
Fleets analysis shows that the 16 decommissioned vehicles have a possible value of over $30,000.00, however it is not guaranteed that amount will be received for each item. Were Council not to approve this action the decommissioned vehicles would remain stored and unused on city property. This could lead to a visual eyesore for citizens. Through Fleet’s analysis the auctioning of the 16 decommissioned assets would maintain fleet size, prevent fleet creep, stop overcrowding of vehicle locations, and provide funds back to the appropriate city accounts.
Budget Impact:
The act of posting an asset for auction on GovDeals requires no upfront cost to the City of Fayetteville. The entire revenue from the sale is given to the city via check and deposited into the appropriate fund. As each of the 16 assets could possibly reach $30,000.00 via auction, the city has the possibility of $480,000.00 returned to the City of Fayetteville in the 2025 Fiscal Year.
Options:
The alternative to placing the assets up for auction would be to maintain possession of the vehicles, in turn increasing maintenance and repair costs, which would also lead to unused vehicles and a decrease in space in city lots.
Recommended Action:
Staff recommend that City Council move to approve the GovDeals electronic auction of the16 decommissioned assets and authorize the City of Fayetteville Fleet Department to begin the electronic auction process.
Attachments:
Surplus Excel Spreadsheet