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Disposal of City Equipment In contrast to city vehicles, the disposal of city equipment is typically made after the equipment is either inoperable or close to failure. As such, they do not always lend themselves well to a traditional auction or garage sale-type method of disposal, primarily because the cost of conductin� these types of auctions or sale exceeds the sale proceeds. A good example of these types of equipment includes used city computers. Typically, the City uses its computers for 5 or more years. After five years, the computers' components and technology are generally unable to run current versions of software and operating systems in demand by most office or home users. In addition, software licensing restrictions do not allow the City to transfer software to the new buyer. A prospective buyer of used city computers may have to pay $200-300 or more to acquire the computer and operating software. When compared to a$400 cost of buying a brand new computer with fully-loaded software and warranty, it's easy to see why there is little demand for used computers on an individual basis. The notable exception to this is with educational institutions or non-profits that oftentimes purchase large lots of used computers for low-level instructional purposes. Given the lack of individual demand, the relatively small quantities of computers, and in consideration of the disposal costs for hazardous equipment, Staff has determined that it's more cost effective to dispose of computers through the State Prison System's computer program. The inmate population's low labor cost provides a cost-effective means to recondition anctlor dispose of used computers. Other types of used equipment (if operable) such as tools or office machines are sold at periodic City-held garage type sales that are open to the general public. Legal Concerns To a degree, State Statute governs the methods by which the City disposes of used or surplus equipment. Attached to this memo is an opinion written by the City attorney that addresses the applicable legal concerns. Worth noting is the section pertaining to elected officials and city employees. Attachments a) Legal opinion regarding the disposal of city vehicles and equipment Final Comments Staff will be available at the meeting to answer any questions regarding the disposal of surplus equipment. �