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8.f)2) Disposal of Surplus Fire Rescue Vehicle Meeting Date: 10/19/2010 Agenda Item: � \ a � City Council Agenda Report City of Scandia 14727 209th St. North Scandia, MN 55073 (651) 433-2274 Action Requested: Authorize staff to dispose of the old Fire Rescue Truck 5179 and approve the method of disposal as required by the city's Purchasing Policy. Deadline/Timeline: N/A Background: • The City replaced the fire rescue truck this year. It was determined that it cannot be converted to another use, and should be sold to free up storage space. Any remaining value will be returned to the Equipment Replacement Fund. • This truck is a red, 1990 Chevrolet Cheyenne 1-ton with bonus cab, 4-wheel drive, dual rear wheels, 454 V8 engine with approximately 26K miles. It has aluminum running boards, a utility box and an oversized front bumper. It is in fair to good condition. • The Purchasing Policy states, "Disposal of any item valued at $100 or more shall require authorization by the City Council. The method of disposition shall be appropriate to the type of item and shall be approved by the Council at the time they determine that the item may be disposed of." • Previously, the city has sold a vehicle by listing it on the League of Minnesota Cities website, Craig's list and its own website. We have learned that other cities have had success with the following additional options: o eBay Motors National Listing: It is free to list and $125 if final bid is over$2,000. Duration of the listing is 7 days. The Auction-Style format cost is $2.00 to list and Final Value fee is 9% with a $50 maximum. Listing duration is 1, 3, 5, 7 or 10 days. The City of Mound used eBay Motors to sell both police cars &fire trucks. o Do-bid.com: The cost is 10% of sale price between $3,000 and $7,500, or 8% if sale price is over$7,500. Maximum marketing costs are $100. Marketing and auction done for 10 to 14 days. They are based in Mountain Iron, so the city would provide the description and pictures based on their format. They have experience Page I of 2 10/15/10 selling fire trucks. The City of Grand Rapids uses them to sell squad cars. o IQBid.com: The cost is 10% of sale price. Advertising cost is 1% of sale price. They do 10 days of advance advertising, and then the auction is for 5 to 7 days. They will come and take pictures and write up the description. They have experience selling fire trucks and a local representative in Farmington. The City of East Grand Forks used them to auction quite a few items, including trucks, and they were very pleased with the results; they received more than they expected. Recommendation: Staff recommends we sell the rescue truck with IQBid.com. They have a local representative and will handle the entire auction process. Also, they have experience with fire trucks and a good report was received from the City of East Grand Forks. Fees would be less to sell the truck on eBay, or to just list it on the city and LMC websites. However, with the additional targeted marketing that IQBid would provide, we would expect to recover the commission with a higher sale price. Attachments/ None Materials provided: Contact(s): Prepared by: Colleen Firkus, Treasurer and Anne Hurlburt, City Administrator (sel]fire rescue truck) Page 2 of 2 10/15/10