HomeMy WebLinkAbout8 Snow Removal Equipment SaleCONSENT
To:
Board of Directors
From:
Stephen Moore
Date:
April 16, 2019
Subject: Consideration to Sell Snow Removal Equipment
1. WHY THIS MATTER IS BEFORE THE BOARD
Board authorization is required to sell District property.
2. HISTORY
On October 03, 2018 the Board approved the purchase of new snow removal
equipment for the Water Department and authorized the General Manager to dispose
of the surplus equipment, Unit 399, at public auction. The surplus equipment is a 2012
New Holland tractor with a snow blower attachment.
3. NEW INFORMATION
A local snow removal company, Ruppert Incorporated (Ruppert), uses New Holland
snow removal equipment in their operations. Ruppert learned of the sale of Unit 399
from the Board action on October 3, 2018. They approached staff early this year
about the possibility of purchasing Unit 399 to grow their fleet. In March, 2019 they
inspected the 2012 New Holland tractor with snow blower attachment and
miscellaneous included parts. On March 26, 2019 the District received a cash offer
from Ruppert in the amount of $102,000 for the purchase of Unit 399.
Staff estimates the auction price for the sale of Unit 399 to be approximately
$100,000. However, after deducting shipping expenses to the auction house, and
auction fees of 5% of the sale price, it is estimated the District would receive no more
than about $93,500 for Unit 399 if sold by auction.
The proposed sale of Unit 399 to Ruppert for $102,000 results in a net gain of about
$8,500 compared to selling this equipment using the auction process. Staff
recommends selling Unit 399 directly to Ruppert in lieu of sending this equipment to
auction.
4. FISCAL IMPACT
Proceeds from the sale of Unit 399 will be deposited into the Water Operating
Reserve Fund and used to offset the cost of the new equipment in the future.
5. RECOMMENDATION
1) Authorize the General Manager to sell Unit 399, a 2012 New Holland Tractor
including snow blowing equipment and miscellaneous parts, to Ruppert Incorporated
for the sales price of $102,000.
2) Authorize the General Manager to apply sale funds for Unit 399 to the Water
Operating Reserve Fund.
3) Authorize the General Manager to sign the registered title of Unit 399 over to
Ruppert Incorporated.
Joe Horvath
Electric Utility Director
Michael D. Holley
General Manager