08-18-09 Item 2dSOUT
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CITY OF SOUTH MIAMI
INTER - OFFICE MEMORANDUM
TO: The Honorable Mayor and Members of the City Commission
VIA: Mr. Ajibola Balogun, City Manager
FROM: Lissette Rivera, Purchasing Manager 0�_00
DATE: August 12, 2009
SUBJECT: Cash for Clunker Temporary Vehicle Trade -In Program Plan
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Request: The City Administration was asked to review the CARS Act, Cash for
Clunkers Program, to determine whether the City is eligible to participate in the program.
Background:
Cash for Clunkers Program:
After conducting research relating to the Federal Program known as the "Cash for
Clunker" Temporary Vehicle Trade -In Program Plan, the following information is
relevant to the City's inquiry:
➢ On June 24, 2009, President Obama signed into law the Consumer Assistance to
Recycle and Save Act of 2009 also known as the "CARS Act" (under bill H. R.
2640). The CARS Act is a temporary program under which an owner of a vehicle
meeting statutorily specified criteria may trade in their vehicles and receive a
financial credit from the dealer toward the purchase or lease of a new vehicle
meeting additional statutorily specified criteria. The individual applying for the
CARS Act program can save up to $4,500 (trade in credit voucher) if certain fuel
efficiency criteria are met.
The "Cash for Clunker", Temporary Vehicle Trade -In Program Plan provides
certain individuals the opportunity to trade in old high consumption cars for new
fuel efficient ones.
South Miami
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The Act allows all persons to participate in the program, provided the criteria for
the trade -in and purchase vehicle are met. A person is defined to include a
corporation. The City of South Miami, as a municipal corporation meets the
definition of a person. A person may only be issued 1 voucher for an eligible
trade -in vehicle. The vehicle purchased may not be specialized; it must have
standard factory features.
Findings /Conclusion:
➢ The City of South Miami will not be able to participate and benefit from this
program. In the Code of Ordinances, Sec. 2 -4.7 provides a process for getting rid
of surplus items, which a vehicle that is being traded in would be in. effect surplus.
Sec. 2 -4.7. Surplus city -owned property- states surplus items should be
disposed of by means of public sales or public auctions. (see code section below)
Sec. 2 -4.7. Surplus city -owned property
(a) Items of personal property owned by the city shall not be sold unless and
until it is declared to be surplus property by resolution of the city
commission.
(b) The city commission shall not consider declaring any item of personal
property to be surplus unless the city manager has affirmatively
recommended such action thereon.
(c) Upon determination by resolution by the city commission that an item of
personal property is surplus, the city manager is herby authorized to sell
to the highest bidder at public sale or, if approved by the commission by
resolution, at public auction, said item or personal property after
advertising the date, time and place of said sale or auction once a week
for three (3) consecutive weeks in a newspaper of general circulation in
the city. The city manager shall have the right to accept or reject any or
all bids. In the event the personal property shall be offered for sale or
auction, and no bids shall be received therefor, it shall be deemed that
such property has no value and the city manager in his discretion may
order it destroyed or otherwise disposed of.
(d) This section shall not apply to stolen, abandoned or confiscated personal
property which has come into the city's possession (Ord. No. 810, §§ 1-
4, 2 -5 -74)