Council Communication

Title:	Council authorization to dispose of surplus property valued in excess of $10,000
Dept:	Finance Department
Date:	January 2, 2003
Submitted By:	Lee Tuneberg, Finance Director
Reviewed By: ........................	Brian Almquist, Interim City Administrator

Synopsis:	This Council action autorhizeds the Purchasing Agent (Finance Director) to dispose of in an appropriate fashion personal property owned by the city and deemed surplus by the custodial department(s).
Recommendation:	Staff recommends the Council move to authorized the Purchasing Agent to declare as surplus and dispose of a 1997 Melroe Bobcat Loader.
Fiscal Impact:	Reduction of net fixed assets within the general ledger, realization of budgetary income and/or recognition of gain or loss from sale.
Background:	Section 2.52.070 of the AMC authorizes the Puchasing Agent to dispose of surplus personal property by any means determined to be in the best interest of the City.  If such property has a residual value greater than $10,000, City Council authorization will be obtained prior to disposal.  The City owns a 1997 Belroe Bobcat Model 863H that has had considerable wear from asphalt grinding.  The estimated range for selling it would be $10,000 to $16,000. Staff believe the City would get near the bottom due to wear and would have to expend time and money to sell.  The trade in offoer of $12,500 is thought to be fair.   This property will be traded in for a new loader that better meets City need, recognizing any gain or loss and recording proceeds as revenue in the appropriate fund.  This is a budgeted purchase.

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