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HomeMy WebLinkAbout9 Surplus Equipment Declarations (Post Edits)TRUCKEE DONNER Public Utility District MEETING DATE: August 3, 2022 TO: Board of Directors FROM: Michael Salmon, CFO AGENDA ITEM #9 SUBJECT: Consideration to Declare Certain Assets as Surplus and Authorize Sale at Public Auction in Accordance with District Code 8.20.010. - �� - r APPROVED BY Brian C. Wright, General Manager RECOMMENDATION: a. Declare the RCS Pro Series Snow Pusher surplus and Authorize the General Manager to dispose of the Unit at public auction, applying sale funds to the Water Vehicle Reserve Fund in accordance with District Code 8.20.010 for permission to sell the items at auction, and b. Declare the Ammco Safe -Turn Brake Lathe Model 4000 surplus and authorize the General Manager to dispose of the Unit at public auction, applying sale funds to the Electric Vehicle Reserve Fund in accordance with District Code 8.20.010 for permission to sell the items at auction, and c. Declare the Western Pro Plus Snow Plow surplus and authorize the General Manager to dispose of the Unit at public auction, applying sale funds to the Water Vehicle Reserve Fund in accordance with District Code 8.20.010 for permission to sell the items at auction. BACKGROUND: The District's fleet is comprised of over 106 vehicles and equipment, including trucks, heavy machinery, trailers and specialized utility equipment. This Page 1 of 3 equipment is essential for Electric and Water Department daily operations, transportation requirements, and emergency response. The District maintains a Vehicle Reserve Fund (Reserve Fund) for the Electric and Water Departments. The funding of replacement vehicles and equipment comes from the Reserve Fund, which is replenished with budgeted annual contributions from the Electric and Water Departments, plus revenue from the sale of decommissioned vehicles and equipment sold at public auction. The Reserve Fund and biannual budget process helps to ensure the timely purchase and replacement of vehicles and equipment essential for the District to reliably and safely serve customers. ANALYSIS: Equipment has been identified that is owned by the District that is no longer used. The equipment continues to have value which if sold at surplus auction can benefit the District financially by returning auction proceeds to the vehicle reserve fund. Additional benefit includes storage area created and general organization with removal of unused equipment. Staff is recommending sale of the following items at auction in accordance with District Code 8.20.010. RCS Pro Series Snow Pusher - Approximate value $2000 dollars. This implement has not been used since the purchase of the blade for the new loader in 2018. 2. Ammco Safe -Turn Brake Lathe Model 4000 - Approximate value $1500 dollars It has become faster and more cost effective to purchase new rotors and drums. Removing steel from the rotor or drum leads to faster wear and increased maintenance intervals in the mountain topography and terrain. 3. Western Pro Plus Snow Plow -Approximate value $2000 dollars. The truck that this plow mounted to was sold at auction and the plow was forgotten at the time of the sale. Goals and Obiectives: This item is in support of the following goals and objectives: District Code1.05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. Strateaic Goals: 1. Manage for Financial Stability and Resiliency. 4. Take the best of private sector thinking to modernize the utility and add value to our Communities. Page 2 of 3 FISCAL IMPACT: 1. Dispose of RCS Pro Series Snow Pusher at public auction. Sale of this asset was not budgeted in Water Department Vehicle Reserves, therefore increasing the reserve balance a conservative estimate of $2,000. 2. Dispose of Ammco Safe -Turn Brake Lathe Model 4000 at public auction. Sale of this asset was not budgeted in Electric Department Vehicle Reserves, therefore increasing the reserve balance a conservative estimate of $1, 500. 3. Dispose of Western Pro Plus Snow Plow at public auction. Sale of this asset was not budgeted in Water Department Vehicle Reserves, therefore increasing the reserve balance a conservative estimate of $2,000. ATTACHMENTS: 0 rem Page 3 of 3