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HomeMy WebLinkAbout10A - Resolution Re: Accepting a Donation of Exercise Equipment MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT May 5, 2008 10A Frank Boyles, City Manager CONSIDER APPROVAL OF A RESOLUTION ACCEPTING A DONATION OF EXERCISE EQUIPMENT AND DECLARING EXISTING EXERCISE EQUIPMENT EXCESS TO CITY NEEDS Introduction The purpose of this agenda item is to request that the Council accept a donation of equipment from Lifetime Fitness and declare existing City-owned exercise equipment surplus to our needs. Historv The staff purchased exercise equipment for Fire Station No. 1 many years ago. That equipment has been heavily used and is now worn out. Fire Station NO.2 was designed to contain a modest exercise area which needs equipment. Current Circumstances Members of the Fire Department requested a contribution from Lifetime Fitness for eight pieces of equipment which can be used for both Fire Station No. 1 and Fire Station NO.2. The Lifetime Fitness equipment is two years old and, technologically and physically sound. The Lifetime Fitness donation includes: two treadmills, two stair climbers, two elliptical machines and two stationary bikes. They have indicated the value of the equipment is $10,000. These donated pieces will replace a Nordic Track, stair climber, tread mill and stationary bike. The Nordic Track, tread mill and climber are beyond repair. The bike does not meet current industry standards. City Code, section 110.404 (attached), provides that, City-owned personal property may be disposed of through public auction, direct public sale, donation to a non-profit or governmental unit, recycled or disposed of, or traded in. Because of the poor condition of the equipment, staff does not want to expose the City to the risk of possible liability from selling or giving it to others. Staff recommends the equipment be discarded appropriately. Conclusion The Council should determine if it wishes to accept the donation and declare the existing equipment surplus as recommended by staff. The proposed donation will provide enough equipment to equip the fitness areas at both fire stations at no cost to the taxpayers. Discarding the existing equipment is the safest means of disposal. www.cityofpriorlake.com Phone 952.447.9800 I Fax 952.447.4245 FINANCIAL IMPACT: Disposal of the existing equipment could cost the City $150. The donation from Lifetime Fitness, considering the age and type of equipment is estimated to exceed $10,000. ALTERNATIVES: 1. Adopt the attached resolution authorizing acceptance of the donation and disposal of the existing equipment. 2. Take no action or deny the request. RECOMMENDED Alternative #1. MOTION: ReViewer:uJ ~k Frank Boyles, C':Ja,,, Motion By: Second By: WHEREAS, The City has included exercise rooms in Fire Stations Nos. 1 and 2 to encourage fire fighters to stay in good physical condition; and WHEREAS, Certain of the City's existing exercise equipment is physically or technologically worn out and excess to City needs; and WHEREAS, The staff has evaluated the most appropriate way of disposing of this equipment; and WHEREAS, The staff has recommended disposal of the existing exercise equipment instead of sale to minimize liability; and WHEREAS Lifetime Fitness has adopted a policy of disposing of its equipment after two years of use; and WHEREAS The Lifetime Fitness equipment is technologically and physically in sound operating condition; and WHEREAS The value of this donation is estimated to be $10,000. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City's existing Nordic Track, stair climber, tread mill and stationary bike are in poor repair and do not meet current industry standards. Because of the condition of the equipment, the City does not want to risk exposure to liability by selling or donating the equipment. 3. The City Council declares the equipment set forth in finding #2 above surplus. 4. The staff is directed to discard the equipment. 5. The staff is authorized to accept a donation from Lifetime Fitness of two tread mills, two stair climbers, two elliptical machines and two stationary bikes to be used at Fire Station Nos. 1 and 2. 6. The Council finds the value of the donation to be $10,000. PASSED AND ADOPTED THIS 5th DAY OF MAY 2008. YES NO I Haugen I Erickson I Hedberg leMair Millar Haugen Erickson Hedberg leMair Millar Frank Boyles, City Manager www.cityofpriorlake.com Phone 952.447.9800 I Fax 952.447.4245 Administrative property in its possession without following the procedures contained in subsections 110.302, 110.303 and 110.305, when such real property is intended to be conveyed to another governmental subdivision, public corporation, the State, an agency of the State, the Federal government, or an agency of the Federal Government. In such cases, the City may sell or otherwise convey its land for a nominal consideration, without consideration or such consideration as may be agreed upon. 110.308 Through action and approval of the City Council, the City may dispose of real property owned by the City in fee simple and not restricted by the grant, without following the procedures contained in subsections 110.302 through 110.305, when such real property is conveyed to encourage and promote industry and provide employment for citizens by conveying said property to any person (individual(s), partnership, corporate or other entity) for a nominal consideration or for such consideration as may be agreed upon. ~--~,,:,,,,""--- -....._-~.~ ~~.,....,. ....-...~ 11 0.400: (i>ISPOSITION OF PERSONAL PROPE~__._~ 110.401 Disposition of personal property owned by the City shall comply with the provisions of Minnesota Statutes, section 471.345, Uniform Municipal Contracting Law, as amended from time to time, which is incorporated herein by reference. 110.402 Surolus Propertv. When City equipment, furniture, computers, vehicles or other personal property has been replaced, is no longer needed, or is no longer in working condition and repair is not cost-effective, the City Council may declare the personal property to be surplus. 110.403 Method of Disposition of Surolus Personal PropertY. Surplus personal property can be disposed of using the following methods: (1) public auction, (2) direct sale to the public, (3) donation to a non-profit organization or other govemmental unit; (4) in the case of damaged personal property or personal property which has no significant value, the property may be recycled or disposed of as refuse, or (5) disposed of as a "trade-in" to offset the cost of replacement equipment. The City Manager shall determine the appropriate method of disposition of surplus personal property. 110.404 Disposition of Surolus Personal Propertv bv Direct Sale to the Public. If the value of the surplus personal property is estimated to be equal to or less than the amount set forth in Minnesota Statutes, section 471.345, subdivision 5, the surplus personal property may be sold in the open market by the City Manager, but so far as practicable, said disposition shall be based on two (2) or more bids which shall be kept on file one year from date of receipt, or offered in an equal manner to the general public through the conduct of a sale, or an auction consistent with Section 110.305 herein. If the value of the surplus personal property is estimated to be within the range set forth in Minnesota Statutes, section 471.345, subdivision 4, the City Manager may authorize either the receipt of sealed competitive bids or directly negotiate by obtaining at least two (2) bids without advertising or otherwise complying with the requirements of competitive bidding. The City Manager may establish the time for City of Prior Lake 110/p3 110.405 110.500: 110.600: 110.601 110.602 110l700: Administrative receipt of the sealed bids or such other requirements as he deems appropriate. After review of the bids and any other comments or information he may require, the City Manager shall make a recommendation to the City Council. The City Council shall then either approve or disapprove the sale of the personal property or, if the sealed bid procedure was not used, refer the matter back to the City Manager for additional solicitation. All bids obtained shall be kept on file for a period of at least one year after receipt thereof. If the value of the surplus personal property is estimated to exceed the amount set forth in Minnesota Statutes, section 471.345, subdivision 3, the City Manager shall require sealed bids to be solicited by public notice in the manner and subject to the requirements of competitive bidding for the City. Notice Reauired. If the property is to be sold, either by auction or direct sale to the public, an advertisement must be placed in the official newspaper of the City. The notice shall be published for two (2) consecutive weeks in the official newspaper and at least five (5) calendar days must intervene between the date of the last publication and the date of either the (1) conduct of the sale or auction, or (2) deadline for acceptance of sealed bids. This notice shall contain a description of the property and the terms and conditions of sale. (Amd. Ord 107-07, pub. 04/21/07). RESTRICTIONS ON SALE To CITY EMPLOYEES: No real or personal property shall be sold to any officer or employee of the City unless the sale is open and public. City employees are not permitted to preview the property before the sale, nor are City employees permitted to enter the sale location any earlier than the general public. (Amd. Ord 107-07, pub 04/21/07). ApPLICATION AND EXCEPTION OF PROVISIONS: Aoolication: The procedure set forth in this Section shall be applicable to any manner or means of transfer, change of ownership or conveyance of property belonging to the City unless otherwise provided by the City Council. The City may, under some circumstances, dispose of property by ordinance not in accordance with this procedure with a vote of not less than four (4) members of the Council. Exceotion: The provisions of this Section shall not be applicable to perishable property or dated property such as drugs or property that has been received by the City in excess of quantities needed, when such property is disposed of in a manner approved by the City Manager. (Ord. 76-5, 4-19-76) DISPOSITION OF UNCLAIMED PROPERTY HELD BY THE CITY: Sale Of Unclaimed Propert'l. Whenever any property of any nature, exclusive of any motorized vehicle, lawfully comes into possession of the City in the course of the Municipal operations of the City and such property remains unclaimed by the owner thereof for a period of three (3) months or more, the City may dispose of such property by the Chief of Police conducting a public auction or sale, following City of Prior Lake 11 O/p4 Page 1 of 1 Frank Boyles From: Doug Hartman Sent: Thursday, April 24, 20084:53 PM To: Frank Boyles Subject: FW: Exercise Equipment Per our discussion. Doug Hartman Fire Chief City of Prior Lake From: Chard, Dale [mailto:dchard@ci.lakeville.mn.us] Sent: Thursday, April 24, 2008 8:29 AM To: Doug Hartman Cc: Dale Chard Subject: Exercise Equipment Good morning Doug, You have seen Life time Fitness donated 8 pieces of exercise equipment to PLFD. Last December we asked L TF if they sell or donate used equipment. We told at that time that we were on a list and expect a call in 2-3 months. Last Monday (Apr-21) we received a call telling us that 8 pieces have become available and to come and get them soon as possible. Larry, Killer, JB and I braved the weather and drove to Eden Prairie to pick up the equipment. As you can tell It is very nice equipment and only 2 years old. Life Time has a policy that all equipment be changed every 2 years in order to have the latest and greatest. The existing equipment in the workout area has been in poor condition and the area has seen increased use for the past couple years. We have a Nordic track, stair climber, tread mill, and bike. The Nordic track, tread mill, and climber are beyond repair and the bike is non-computerized. All this equipment could be scraped or sold, but because of the poor condition of all this stuff. The scrap yard would be a better place for it. The 8 pieces L TF donated are 2 tread mills, 2 stair climbers, 2 elliptical machines and 2 stationary bikes. It would be possible to split this equipment in half to facilitate both PLFD stations. We have not installed the new equipment and all of it is the old work out room. Please let me know of what we should do next regarding disposal of the old equipment and installation of the new equipment. Dale This message is intended only for the designated recipient(s). It may contain confidential or proprietary information and may be subject to confidentiality protections If you are not a designated recipient, you may not review, copy or distribute this message. If you receive this in error, please notify the sender by reply e-mail and delete this message or contact the City of Lakeville Information Systems Division at 952- 985-2640. Thank you. This e-mail message has been scanned by MailMarshal from Marshal Software, an email content filter. 4/24/2008