TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works
REPORT BY: Katherine Bales- Assistant Airport Manager
SUBJECT: Replace Utility Tractor Capital Asset, Disposal of Airport Surplus equipment, and associated Budget Amendment for Airport
RECOMMENDATION
title
Approve the surplus, disposal, and sale at auction of a John Deere Utility Tractor capital asset; authorize a waiver of competitive bidding and sole source for the purchase of a Compact Utility Tractor; and approve an associated Budget Amendment due to quotes being higher than anticipated. (Fiscal Impact: $17,166 Expense; Airport Fund; Not Budgeted; Discretionary)
[4/5 vote required]
body
BACKGROUND
The Airport has plans to replace its John Deere Utility Tractor and associated attachments for continued maintenance of the Airport. The equipment serves various needs throughout the airport and is a vital piece of our maintenance and capital improvement project program. Originally purchased in 1998, this asset has become non-reparable, and it has outlived its useful life. It has been removed from service and is no longer needed for public use. The asset also no longer meets current California air quality standards for off-road diesel-fueled fleet regulations issued by the California Air Resources Board (CARB).
In recognition of the need, the Airport budgeted $60,000 in the current fiscal year to purchase a replacement utility tractor which was included in the approved capital equipment schedule. The Airport recently received a quote for the replacement unit and the associated attachments, and the quote came back higher than budgeted, in the amount of $77,166. The additional $17,166 needed to purchase the replacement tractor will come from the Airport Enterprise Fund and will be partially offset by proceeds from the anticipated auction of the current tractor.
Deere & Company of Cary, North Carolina, participates in cooperative government procurement pricing through Sourcewell and offers this equipment with attachments at a discounted price. Delivery of the equipment and any future warranty work will be through Belkorp Ag, LLC, of Santa Rosa, CA. Given the unique design, useful attachments, and consistency with other airport off-road equipment that meets various airport needs, staff recommends a sole source procurement for the replacement tractor through Sourcewell cooperative procurement pricing under Napa County Code Section 2.36.090.
With approval of today's actions, the current 1998 John Deere tractor will be declared surplus and sold at auction and the Public Works Director and/or Fleet Manager will be authorized to sign the certificate of title for the surplus equipment. California Code Section 25363 authorizes the Board of Supervisors, upon a four-fifths (4/5) vote, to sell at public auction, and convey to the highest bidder, for cash, any property belonging to the County and not required for public use. Additionally, today's approval will authorize the Auditor-Controller to remove the fully depreciated surplus asset and establish a new asset on the Airport’s capital asset listing.
Requested Actions:
1. Authorize a waiver of competitive bidding and sole source to Deere & Company of Cary, North Carolina for purchase of a Compact Utility Tractor and attachments at a cost of $77,166.
2. Declare capital asset #101470 as surplus and no longer required for public use, including:
a) Authorize the Auditor-Controller to remove this surplus capital asset from the capital asset listing;
b) Authorize the sale of the surplus capital asset at public auction; and
c) Authorize the Public Works Director and/or Fleet Manager to sign the certificate of title for the surplus equipment being sold at auction.
3. Approve a Budget Amendment for the purchase of a capital asset for the following:
a) Increase appropriation by $17,166 in the Capital Asset account in the Airport Operations budget (Fund 5010, Subdivision 5010000, Account 55400) offset by the use of its available fund balance.
[4/5 vote required]
FISCAL IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
Where is it budgeted? |
Airport Enterprise Fund (Fund 5010, Subdivision 5010000, Object 55400) |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
The utility tractor is needed to maintain the Airport grounds. Several attachments make it a universal piece of equipment for landside and airside needs. The surplus of asset #101470 and auction will assist with the offset of increased purchasing costs. Revenue will be deposited into Airport Fund 5010, Airport Operations Sub-Division 5010000 |
|
Is the general fund affected? |
No |
|
Future fiscal impact: |
Ongoing general maintenance and repairs of capital assets will continue to be budgeted for future fiscal years. |
|
Consequences if not approved: |
The Airport will no longer be able to effectively manage various maintenance tasks. |
|
|
|
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.