8d. Memo Disposal of Two Airfield Sweepers and Airfield Lift Truck
COMMISSION AGENDA MEMORANDUM Item No. 8d ACTION ITEM Date of Meeting March 9, 2021 DATE: January 22, 2021 TO: Stephen P. Metruck, Executive Director FROM: Mark Coates, Aviation Operations Senior Manager Benny Austin, Aviation Maintenance Senior Manager Daniel Alter, Aviation Maintenance Fleet Manager Paul Pelton, Aviation Operations Manager SUBJECT: Authorization for Disposal of Two Airfield Sweepers and Airfield Lift Truck Amount of this request: Est. Sale Value $95,000 ACTION REQUESTED Request commission authorization for the Executive Director, or his designee, to take all necessary steps to dispose of surplus personal property , a 2012 Airfield sweeper, a 2014 Airfield sweeper, and a 2015 Lift Truck at the Seattle-Tacoma International Airport, in accordance with the General Delegation of Authority and Port Policy AC-13. EXECUTIVE SUMMARY Port Policy AC-13 was established to set standards to govern activities used to dispose of Port property consistent with the Port's General Delegation of Authority. AC-13 prescribes, "property should be disposed when it no longer serves its intended purpose, no alternate future use within 12 months exists, it is not considered a specialty item, and/or the Port no longer requires it to maximize the return on investment for the disposal of Port's property." The two Airfield sweepers are in process of being replaced with new units as they are at the end of their useful life. The Airfield lift truck was purchased in 2014 to provide ADA compliance for hardstand operations. The Airfield lift truck is no longer of use to the Airport as more effective alternative methods to provide ADA access have been implemented. The Airport has procured portable jet bridge systems to provide ADA compliant aircraft access. Other Key Points: The two sweepers are in the process of being replaced through the Aviation Division small capital project process approved in 2020. The new sweepers will provide increased reliability for required airfield FOD reduction. Template revised January 10, 2019. COMMISSION AGENDA Action Item No. 8d Page 2 of 3 Meeting Date: March 9, 2021 Two units may be traded in to reduce purchase price of new units. The lift truck is not being used and no longer needed. The portable jet bridge systems have proven to be a superior method for caring for passengers needing such assistance. Estimated Valuation (pending appraisal) Per Unit Total Value 2012 Tymco 600 Sweeper $35,000 $35,000 Vehicle #1470, Vin 1HTJTSKN2CJ615828 2014 Tymco 600 Sweeper $28,000 $28,000 Vehicle #1563, Vin 1HTJTSKN9EH485170 2015 Ford F750 ADA Passenger Lift Truck $32,000 $32,000 Vehicle # 1625, Vin 3FRPF7FA3FV671185 JUSTIFICATION Both sweepers are being replaced in 2021 through small capital projects. Those are budgeted at $294,000/unit. These sweepers do not have another Port wide need and are at the end of their useful life with more than 12,000 run hours. Both sweepers require refurbishment at twice their residual value. Sweepers being replaced may have potential second life in other industries where uptime and reliability at the level necessary for SEA are not an issue. The Airfield lift truck is not being utilized at this time and disposing of the equipment will allow the Port to recapture value and avoid potential repair and maintenance expense. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Retain the three vehicles for unanticipated future use. Cost Implications: There would be no revenue generated from sale of equipment through public auction. E stimated resale value $95,000. A minimum one-time cost of $100,000 to get equipment ready for use and increased annual maintenance and repair of $15,000/year. Pros: (1) Back up equipment could assist with airfield operations or facility pavement maintenance. Cons: (1) The cost to make these sweepers reliably operable will cost $100,000. (2) Retaining the equipment will increase maintenance and repair costs. (3) Equipment parking/storage space is very limited for essential equipment. We do not have space to park/store these non-essential spare equipment items (4) Eliminates potential sales return. (5) Equipment is not expected to be needed or used. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. 8d Page 3 of 3 Meeting Date: March 9, 2021 Alternative 2 Dispose of the two road/airfield sweepers, retain and repurpose the ADA Lift truck. Cost Implications: No revenue from sales estimated at $32,000. A minimum one-time cost of $5,000 to repair the ADA lift truck and increased annual maintenance and repair of $5,000/year. The cost to repurpose the ADA lift truck would vary depending on the chosen application, but a minimum of $25,000 would be required a very basic upfit; like a flat bed or box. Pros: (1) Removes two sweepers from the fleet that are beyond their useful life. (2) Retro-fit of ADA lift truck has potential for to reduce the cost for future truck chassis. Cons: (1) A minimal retro-fit and reconfiguration would cost an estimated $25,000. (2) Increase maintenance and repair budget, with projected low use. (3) Takes constrained space on airfield for projected low use equipment. (4) Eliminates potential sales return. (5) No current need for this chassis. (6) Residue value of asset will decrease over time. This is not the recommended alternative. Alternative 3 Authorize disposal of the equipment Cost Implications: Potential sales revenue estimated at $95,000. Pros: (1) Reduces operating maintenance and repair cost. (2) Opens space on the airfield. (3) Follows best practices. (4) Potential sales revenue. Cons: (1) Disposed equipment may meet unknown future need. This is the recommended alternative. ATTACHMENTS (1) Presentation labeled, Sweeper and Lift Truck Disposition Presentation. Template revised June 27, 2019 (Diversity in Contracting).
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