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Item #05 Approval to Dispose of Surplus Sanitation Trucks ocoee florida AGENDA ITEM COVER SHEET Meeting Date: November 3, 2015 Item # Reviewed By: Contact Name: Stephen C. Krug Department Director: f, , 11 Contact Number: 6002 City Manager: Subject Disposal of Surplus Sanitation Trucks. Background Summary: The Commission declared Sanitation trucks 742, 744 & 749 surplus at the September 1, 2015 meeting per Florida Statute 274, in order to properly dispose of them. George Gideon Auctioneers, Inc., (Gideon) has advertised the trucks through on-line auctions with minimum pricing reserves set on all three trucks totaling $94,000.00. The reserve pricing was estimated in the 2014/15 budget based on the anticipated future value of the trucks at time of disposal. The bids received to date on the closed auctions total $68,000.00. The reduced bid pricing is based on the trucks now being ten (10) years old with bodies that require significant repair work to be utilized again in service. In previous years, Public Works successfully sought out potential vendors outside of our State network. Following several site inspections this year from truck vending firms, Public Works was informed the market now holds a low interest in the pre-emission trucks we are offering. Due to the low demand for the two (2) 2006 side arm load trucks and one (1) 2006 recycling truck, Public Works recommends Commission approval for Gideon to accept offers below the current reserves that are in line with the used truck market and per staff concurrence. The anticipated revenue will be realized in the current fiscal year. Issue: Request the City Commission to approve the sale of the surplus sanitation trucks based on the current used truck market. Recommendations: Recommend the City Commission approve the sale of Sanitation trucks 742, 744 & 749 (asset numbers VEH0305, VEH0307 & VEH0312, respectively) through George Gideon Auctioneers, Inc., without reserve to align with current used truck market pricing. Public Works staff to concur on acceptance of final pricing. Attachments: None. Financial Impact: The surplus value of the trucks will be incorporated into the current fiscal years' Sanitation revenues. Type of Item: (please mark with an x') Public Hearing For Clerk's Dept Use: Ordinance First Reading X Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion& Direction Original Document/Contract Attached for Execution by City Clerk X Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. 1C�J� N/A Reviewed by ( ) N/A 2