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HomeMy WebLinkAbout9C - Surplus Fire Equipment MEETING DATE: AGENDA #: PREPARED BY: SUBJECT: DISCUSSION: ISSUES: STAFF AGENDA REPORT MAY 18, 1998 9C DAVE CHROMY, FIRE CHIEF CONSIDER APPROVAL OF BIDS TO DISPOSE OF SURPLUS FIRE EQUIPMENT. Historv: In February, the City Council authorized solicitation of bids to dispose of three pieces of surplus fire equipment including: 1 - 1985 Ford Crown Victoria 1 - 1975 Pumper Truck 1 - 1970 Pumper Truck Current Circumstances: The Crown Victoria was used originally as the Fire Chiefs car and then the Assistant Chiefs. It has received considerable use and has mechanical problems which exceed its value. This vehicle is no longer in use. The 1975 Pumper Truck is no longer in service. Similarly the 1970 Pumper is no longer in service. Even though these trucks are not used, the City insures them. The 1975 Truck, for example, costs $635 per year to insure while the 1970 truck is $537 per year. Bids were solicited for disposal of each piece by placing ads in the Minneapolis Star Tribune, Prior Lake American, and two issues of Minnesota Smokeater. Bids are tabulated on the attached sheet. The high bid for each is shown below: 1985 Crown Victoria: 1975 Pumper Truck 1970 Pumper Truck: $806.00 $826.00 $726.00 1. Is there any useful purpose for this equipment? Given the age and state of repair of the Crown Victoria, it has no useful purpose either for conveying full or part time/seasonal employees to and from work sites or for 16200 Eagle Creek Ave, S.E" Prior Lake, Minnesota 55372-1714 / Ph, (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER T r , emergency service. Neither of the fire trucks is in active use and even when the satellite station opens in three to five years, these trucks would not be used. Instead, existing trucks would be used. 2. Why are the bids so low? The 1985 Crown Victoria bid reflects its age and condition. The blue book average trade in value for this vehicle is $815. The fire trucks represent another dilemma. Generally, the manufacturer of this equipment currently has eight to ten of these vehicles on their lot. There is a glut of vehicles and virtually no demand. The most likely fate for these vehicles is that they will be "parted out" to repair like vehicles which are still in service. We did contact at least one other small fire department who indicated they would like the equipment but have no money. 3. Should we rebid? The market does not appear likely to change but if the Council would have greater comfort we could rebid or send notices out. The ads are running $200. Still another option is to donate the equipment to a department who can use it. Conclusion The fastest way to dispose of the equipment is to award bid. But the Council may wish to explore other options. FISCAL IMPACTS: All three pieces of equipment are paid for. They perform no service for the City. Collectively, they represent a $1,456 ( $234 + $685 + $537) annual insurance cost to the City. ALTERNATIVES: 1. Authorize award of bid. 2. Rebid 3. Donate the equipment to another department. RECOMMENDATION: The City Council should award bid as proposed unless it believes that rebidding would yield better results or is inclined to donate the ipment to another department. DISPOSE,DOC FIRE DEPARTMENT VEHICLES BID TABULATION - CROWN VICTORIA BIDDER NAME 111hb/4/H ~I ,~4LJ. ~/77-/ CHECK AMOUNT (X,tb ~~.CO 9231 BID TABULATION - 1970 PUMPER FIRE TRUCK BIDDER NAME CHECK AMOUNT MkiLL ~/7# # 7U,~o ~1oe:; / oD -- 3Rt.~~ }-R/eU.;c~ BID TABULATION - 1975 FIRE TRUCK BIDDER NAME fiI/A-LL km CHECK AMOUNT 4' ~/~O -- l1.ett'~ /-R/~~6t:5 ".- - .d6~/tV BDT ALL YF.DOC CERTIFIED CHECK ;-/ AttA/P Y O.e.6"a ;/' t1-~ CERTIFIED CHECK /6R7- v #~~Y O~,e CERTIFIED CHECK /dn: /' MdcYOa-X..e , . Microsoft CarPoint - Kelley Blue Book Value Page 1 of 1 Microsoft' CarPcSfnt www.carpoint.com Kelley Blue Book Trade-In* Report Your complete source for car buying information May 13, 1998 1985 Ford Crown Victoria 4-Door Sedan No engine specified Engine No transmission specified 67,000 Miles Minnesota Selected Equipment Vehicle in "Fair" Condition A "fair" vehicle rating means that the vehicle probably has some mechanical defects, but is still in safe running condition. The paint, body and/or interior usually need professional repair to make the vehicle salable. Replacement tires are needed. The vehicle may have some repairable rust damage. A clean title history is assumed. The value of cars in this category varies widely; even after signifi~t reconditioning this vehicle may not qualify for the Blue Book Suggested Retail value. v *Trade-In Value Trade-in Value represents what you might expect to receive from a dealer for a consumer-owned vehicle. Keep in mind that the dealer must then absorb the cost of I making the vehicle ready for sale, advertising, sales commissions, arranging financing $ 81 5 *1 and insurance and standing behind the vehicle for any mechanical or safety problems. . . Back to Kelley Blue Book Go to CarPoint Interactive Classifieds Copyright@ 1998 by Kelley Blue Book Co" All Rights Reserved, May-Jun 1998 Edition, The information in this report is intended for the personal use of the customer only and may not be sold or transmitted to another party, We assume no responsibility for errors or omissions. 5/13/98 2:43:55 PM