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PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 6a ACTION ITEM Date of Meeting December 2, 2014 DATE: November 13, 2014 TO: Ted Fick, Chief Executive Officer FROM Mark Lewis, Project Manager, Marine Maintenance SUBJECT: Second Reading of Resolution No. 3700, surplus of Port of Seattle Aerial Work Platform SPE 527 ACTION REQUESTED Request Second Reading and Final Passage of Resolution No. 3700: A Resolution of the Port Commission of the Port of Seattle declaring Aerial Work Platform No. SPE 527 surplus for Port District purposes and authorizing the Chief Executive Officer to execute all documents necessary for its sale or disposal . SYNOPSIS The 1997 Condor Model 210S Truck Mounted Aerial Work Platform (SPE 527) was purchased in 1998 for the purpose of maintaining, painting and regular inspections of the Container Cranes. At the time of purchase, this was the tallest U.S. manufactured mobile Aerial Work Platform available. With a lift height of 210 feet, the Condor Aerial Work Platform was capable of reaching the heights required for service and crane maintenance. The Port of Seattle turned over crane maintenance to tenants in 2000. With the shift of crane maintenance, the use of SPE 527 has decreased dramatically. SPE 527 is no longer needed for Port purposes and it is in the best interest of the Port that said property be declared surplus and sold or disposed of while it is still in good operating condition. BACKGROUND The Condor Truck Mounted Aerial Work Platform (SPE 527), located at Marine Maintenance was purchased in 1998 at a cost of $1,173,326 for the purpose of maintaining/painting the container cranes and for performing critical inspections. At the time of purchase, there was no other U.S. manufactured aerial work platform available that could reach the heights required to service the taller Post Panamax cranes owned by the Port of Seattle. The Port no longer performs crane maintenance and SPE 527 is no longer needed. In order to maintain the maximum marketability of the Condor Aerial Work Platform, it is desirable to sell while it is fully functional and still in good operating condition. Without use and maintenance, this equipment tends to deteriorate rapidly due to corrosion. Template revised May 30, 2013. COMMISSION AGENDA Ted Fick, Chief Executive Officer November 13, 2014 Page 2 of 3 A local auction company estimated that SPE 527 would sell at public auction within the range of $87,000 to $105,000. RCW 53.08.090 provides that a port district "may sell or convey any of its real or personal property" valued at more than $17,000 (amount adjusted annually) "when the port district has, by resolution, declared the property to be no longer needed for district purposes." REQUEST JUSTIFICATION AND DETAILS Request Objectives Advertise and sell the Condor Aerial Work Platform, SPE 527, for use by others while it is still in good operating condition. RCW 53.08.090 requires the Commission to adopt a resolution to sell or convey personal property valued at more than $17,000. Schedule December 2014 - Advertise for sale FINANCIAL IMPLICATIONS The Port purchased the Condor Aerial Work Platform, SPE 527, for $1,173,326 in 1998. Its estimated value at auction is in the range of approximately $87,000 to $105,000. The net book value of SPE 527, as of October 31, 2014, is $210,221. Budget Status and Source of Funds No funding is requested with this Commission request. The advertisement for the sale of SPE 527 will be funded by the Seaport General Fund. Financial Analysis and Summary CIP Category N/A Project Type N/A Risk adjusted discount rate N/A Key risk factors Key risk factors include the possibility that no buyer will be found for the Condor SPE 527. Project cost for analysis N/A Business Unit (BU) Seaport - Containers COMMISSION AGENDA Ted Fick, Chief Executive Officer November 13, 2014 Page 3 of 3 Effect on business performance The sales proceeds, minus the net book value of SPE 527, will be recognized as a non-operating gain or loss on sale in the year of sale. IRR/NPV N/A STRATEGIES AND OBJECTIVES This request supports the Seaport Division's business plan strategic goal to "maintain existing assets and invest in new developments to sustain and enhance Seaport vitality" by disposing of equipment no longer needed for Port purposes. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1) Doing nothing would leave SPE 527 as is/unused in a condition where it would continue to decline in value. This is not the recommended alternative. Alternative 2) Adopt Resolution No. 3700, which allows the Port to advertise for sale one 1997 Condor Aerial Work Platform, SPE 527 for use by others or trade for new equipment. This is the preferred alternative. ATTACHMENTS TO THIS REQUEST Resolution No. 3700. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS March 10, 1998, Commission authorized for the Manager, Purchasing to enter a fiveyear sole source lease-purchase agreement for procurement of one "210 Foot Reach-all truck." November 11, 2014, Commission authorized First Reading of Resolution No. 3700, declaring certain personal property surplus (Port of Seattle Aerial Work Platform SPE 527) for Port of Seattle purposes and authorizing its sale or disposal.
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