Fiscal Note
The amendment will provide for the recognition of sales proceeds (revenues) from the disposition of used equipement that can be used to offset the purchase of new equipment. There is no effect on General Obligation borrowing or the levy.
The 2015 capital budget of the Fire Department, project No.1, Fire Equipment, Account No. 810338 will be amended as follows:
$25,000 CE72-58585-810338 - Increase Expenditures for Equipment
($25,000) CE72-78311-810338 - Revenues, Increase
Title
Approving the Fire Department to negotiate the sale of fire and medical equipment carried on ambulances and fire engines/trucks and for the 2015 capital budget to be amended to allow for sale proceeds to be used for future purchases from fund CE72 Fire Equipment
Body
Vendors in the past normally accepted old equipment as a trade-in which reduced the price of new equipment. The trade-in value has been traditionally factored into the budget request for fire and medical equipment. The majority of vendors no longer accept equipment on trade-in resulting in a higher price for replacement equipment.
The market for this old specialized equipment is limited and the re-sale amount is contingent on the quick sale to companies that specialize in used equipment. The value of the equipment continues to drastically drop as it ages and new technology becomes available.
The Fire Department has used defibrillators, extrication equipment, etc and is requesting to be authorized to negotiate the sale of this equipment and use the proceeds to apply to future purchases.
WHEREAS, the City wishes to sell old medical and fire equipment as quickly as possible and for the best price.
NOW, THEREFORE, BE IT RESOLVED, that the Fire Department find vendors and negotiate the sale of this equipment to available purchasers/vendors for the best price.
BE IT FURTHER RESOLVED, that sale proceeds will be deposited in the Fire Equipment account-810338 of the Fire Capital Budget .
BE IT STILL FURTHER...
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