Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Accept The Bid Submitted By Harter’s Transport, LLC For The Purchase Of A City Owned 2008 Peterbilt Model 320 W/Automated 22 Cubic Yard Sideloader Refuse Truck, As Surplus Property In The Amount Of $81,111.11.
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Department of Public Works identified one (1) 2008 Peterbilt Model 320 w/Automated 22 Cubic Yard Sideloader Refuse Truck, Vehicle #1224, in their fleet vehicle inventory which provided no continuing operational function and declared the vehicle unit to be excess and surplus.
The City purchased the vehicle in 2008, at a cost of $201,581.00, to be utilized in the City’s sanitation operation and the vehicles estimated resale value was determined to be in excess of $100,000.00.
Section 38.45 (C) of the City’s Purchasing Ordinance, requires that the sale of surplus property valued in excess of $25,000.00 shall be made to the highest bidder by competitive bids in conformance with Section 38.42 of the City’s Purchase Ordinance or by public auction.
Section 38.45 (D)(2) of the City’s Purchasing Ordinance sets forth the procedures for Public Auctions which requires that any surplus property proposed to be sold by public auction shall be appraised by two independent appraisers if the property is estimated to have a value in excess of $100,000.00 and the reserve price shall be equal to 85% of the average of the two appraisal prices.
The Procurement Services Division, in conjunction with the Public Works Fleet Management Division, requested and received two independent vehicle appraisals whose results were $122,500.00 and $148, 600.00.
Based upon the two appraisal prices received, 85% of the average of the two appraisals was determined to be $115,212.50 which was established as the reserve price or minimum price the City could accept for the sale of the surplus vehicle.
City staff made arrangements with the local Manheim Vehicle Auction to enter the surplus vehicle in their public auction for heavy trucks and equipment.
Manheim transported the surplus vehicle to the Manheim Orlando auction location and advertised the public auction sale nationally and online on a number of dates resulting in a high bid of $70,000.00 which was unacceptable to the City as the dollar amount did not meet the City’s established reserve price and the vehicle was then returned to the City.
City staff advertised the surplus vehicle for sale online via Public Surplus on two (2) occasions which resulted in a high bid of $90,000.00 which was unacceptable to the City as the dollar amount did not meet the City’s established reserve price.
On March 31, 2014, Notices of Availability for Competitive Sealed Sale Bid Number S-203-2014 were mailed and the bid was advertised on-line via the City’s website and DemandStar.
Competitive Sealed Bid Sale Number S-203-2014 was opened at 3:00 P.M. on April 18, 2014 and resulted in one (1) written bid from Harter’s Transport, LLC in the amount of
$81, 111.11.
The successful bidder must provide payment within seven (7) days following approval by the City Commission and written notification, and is responsible for payment in the form of a Certified Check or a Cashier’s Check.
It is the sole responsibility of the successful bidder to remove all equipment and material form City property no later than thirty (30) days from date of written award notification.
The City offers no guarantee or warranty, expressed or implied, as to operational or physical condition of the vehicle and equipment as to condition or serviceability of the aforementioned equipment as the equipment is to be sold “as is, where is”.
The Director of Public Works and the Director of Procurement Services recommend that the City Commission approve and authorize the acceptance of the S-203-2014 bid price submitted in the amount of $81,111.11 by Harter’s Transport, LLC, for the surplus sale of one (1) 2008 Peterbilt Model 320 w/Automated 22 Cubic Yard Sideloader Refuse Truck, Vehicle.
Recommended for inclusion on the agenda by:
Cathy Swanson-Rivenbark, City Manager
Matthew Lalla, Director, Financial Services
Sylvia Glazer, Director, Public Works
Joel Wasserman, Director, Procurement Services