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HomeMy WebLinkAbout04-15-2014 C7 Designation of Surplus Fleet Equipment FROM: Daryl R. Grigsby, Director of Public Works Prepared By: Timothy S. Bochum, Deputy Director of Public Works Dave Smith, Interim Fleet Maintenance Supervisor SUBJECT: DESIGNATION OF SURPLUS FLEET EQUIPMENT RECOMMENDATIONS Authorize the surplus designation of approximately: 25 wheels; 70 used or outdated tires; and a Sun 450 vehicle diagnostics machine by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480. DISCUSSION Tires and Wheels The Corporation Yard was built in 1984 and the Fleet Maintenance Shop was designed to use a mezzanine area to store partially used or new tires and wheels. The shop now outsources tire installation for almost all fleet equipment except Police cars. This has allowed the mechanics to focus on other critical duties and eliminates the need for the City yard to acquire a State license as a waste tire storage location. This practice also eliminates the need for the City to continue to store tires and wheels. Currently, any new tire picked up or delivered to the shop for on-site installation includes a provision that the supplier recycle the waste tires. The accumulated tires in the mezzanine proposed for disposal all have varying percentage of tread life. Many are in ‘like new’ condition, but all are at least five years old from date of manufacture stamped on the casing. Liability concerns do not allow fleet staff to install tires on street legal fleet vehicles that were manufactured over five years ago. Diagnostic Machine There is a computer based diagnostic machine stored in the mezzanine that dates back to the late 1980s. Normally staff would dispose of the machine at a local electronics recycling center as its value is almost zero. However, the City Auctioneer indicated the Diagnostic machine could be included with no added effort as part of the load when the auctioneer comes to pick up all the tires and wheels to be sold at auction. FISCAL IMPACT The auctioneer does not know what the income for the tires will be but believes the potential combined auction value will be over $1,000. Any amount in excess of $1,000 requires Council approval for surplus designation. 04-15-2014 C7 - 1 Designation of Surplus Fleet Equipment Page 2 ALTERNATIVE 1. Dispose of the tires as waste. The tires could be disposed of as waste by a local tire company at a cost of $4 per tire and the diagnostic machine could be taken to a local recycle plant for no charge. Staff does not recommend this alternative as the tires will have saleable value. ATTACHMENT 1. Photo of surplus tires, wheels and diagnostic machine. T:\Council Agenda Reports\2014\2014-04-15\Surplus Fleet Equipment\_CAR - Surplus Fleet Equipmen.doc C7 - 2 Attachment          C7 - 3 Page intentionally left blank. C7 - 4