City of Oak Creek

Common Council Report

Meeting Date:  11-08-06

Item No.:        

Recommendation:  That the Common Council approve a contract with Property Room for on-line auction services to dispose of surplus city property.  

Background:  In August of 2006 the Common Council authorized the Police Department to use an on-line auction service for disposal of abandon and surplus property.  Current City Policy (Purchasing Policy) Article 9 Disposal of Surplus Goods authorizes city surplus property to be disposed of “through sealed bids, auction, or open market sales.

Staff has researched the on-line auction services provided by Property Room, for disposal of surplus property.  Property Room picks up all surplus property, posts the property on their auction site, and ships the property to the final high bidder.  All proceeds are shared equally between the city and Property Room. 

Property room (or a similar on-line auction service) is currently used by 20 cities with a population at or larger than Oak Creek with very good results.

Prior to selling any property considered surplus the department manager will submit a detailed list of goods for auction to the City Administrator for approval and reassignment.

Fiscal Impact:  Past Police auctions have netted between $2,000 and $3,000 per auction.  However, when the internal and administrative costs associated with the auction are factored in, the City makes little net proceeds, or runs the auction at a net loss of revenue.  The use of Property room will allow the City to net 50% of the proceeds from the sale of our surplus property with little administrative overhead. 

Prepared and Submitted by: Patrick DeGrave City Administrator Legal Review by: Lawrence Haskin City Attorney

Fiscal Review by: Beverly A. Buretta, CMC City Clerk