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Item No: 7E Meeting Date: March 22, 2010 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Public Works Director Item Title/Subject: Resolution 7596, Approving the Sale of Used Public Works Equipment Background: Public Works has been evaluating the need of various pieces of equipment and other items in and around the Public Works Facility in an effort to either create more space or sell before the value deflates too quickly. Staff has identified the two fabricated pedestrian bridges salvaged from the former City-owned golf course and an older skid steer v-plow implement as good candidates to sell. Staff advertised the sale of these items on the League of Minnesota Cities website under “For Sale/Fee” of the Marketplace section. The bridges were advertised for $10,000 per bridge or best offer, and the v-plow was $1,000 of best offer. A copy of the ads are attached to this report. Discussion: The bridges were fabricated around 1993 and used at the former City-owned golf course until they were moved in April 2006 to make way for the Medtronic redevelopment. The bridges were moved to the PW Facility where they remain today. The City incurred no cost to salvage and move the bridges to the PW Facility. Bonestroo prepared a Feasibility and Cost Analysis Report for re-use of the bridges in November 2007 (see attached). Two options were recommended: 1) re-use the bridges at new locations, and 2) sell the bridges. The estimated cost to re-use the bridges was $90,000 per bridge. Bonestroo estimated a resale value in the range of $10,000 to $15,000 assuming a new purchase of $30,000. However, PW Staff recently contacted the bridge manufacturer, Continental Bridge, to get an estimate of what an identical bridge would cost new. Continental provided an estimate of $15,000 with a freight charge of $1,500. The v-plow was used for many years on the bobcat skid steer to remove snow and ice from sidewalks and other narrower areas. Currently, PW uses a different piece of equipment (Aebi) that the v-plow is not compatible. Therefore, the v-plow is not needed anymore. Bids were received from the following parties: • Metropolitan Council Environmental Services: $7,000 for one bridge • Town of Hassan, Minnesota: $7,800 for one bridge • City of Ham Lake, Minnesota: $800 for v-plow Recommendation: Staff recommends that the City Council consider adopting Resolution 7596 that will approve the sale of the two pedestrian bridges and a skid steer v-plow. If approved, Staff will prepare a “as-is” purchase agreement provided by the City Attorney’s office. Respectfully submitted, Nick DeBar - Public Works Director Attachments: 1) For Sale Ads; 2) Bonestroo Report; 3) Resolution 7596