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ITEM: AUTHORIZATION TO DISPOSE OF SURPLUS TANGIBLE PERSONAL PROPERTY
REQUEST: Authorization to dispose of FY 2020 surplus tangible property.
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EXPLANATION: The Water Treatment Plant upgrade and expansion includes new equipment that replaces older obsolete equipment. Nineteen (19) surplus items of tangible personal property (TPP) or fixed assets meeting disposition criteria per the Village’s Purchasing and Procurement Policy (Chapter 13, Section D) a scheduled for removal and replacement, the old equipment will be sold or scrapped.
The initial cost of these items was $56,681.15, the accumulated depreciation is $53,192.65, leaving a current value of $3,488.50 (summary attached as Exhibit A). Some of the heavy equipment listed does not include a purchase cost because they were purchased and installed as part of previous CIP projects.
Fifteen (15) assets (heavy equipment and computer equipment) will be sold through GovDeals, the Village’s approved public auction vendor, one (1) asset was reimbursed through an insurance claim, and the remaining three (3) items will be scrapped.
|
METHOD DISPOSAL |
|
|
|
Selling |
Insurance |
Scrapping |
Total Surplus |
|
Acquisition Cost |
$17,460.00 |
$19,086.00 |
$20,135.15 |
$56,681.15 |
|
Accumulation Depreciation |
$13,971.50 |
$19,086.00 |
$20,135.15 |
$53,192.65 |
|
TOTALNET VALUE |
$3,488.50 |
$ 0 |
$ 0 |
$3,488.50 |
Surplus TPP or fixed assets are identified annually as part of the Village-wide departmental inventory and condition assessment. A master list of these fixed assets, verified by OFMB, is categorized as no longer useful or to be exchanged for a new purchase/replacement.
The Utility Department evaluated the heavy equipment proposed for disposition, and determined that due to their age, condition and high cost of maintenance, replacement is recommended during the expansion of the plant. This process, including the various methods of disposition, is pursuant to the Village’s Purchasing and Procurement Policy and is consistent with Florida Statues.
Staff requests authorization to dispose of FY 2020 surplus tangible personal property.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Revenues are anticipated as a result of surplus tangible personal property sold.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Authorization to dispose of FY 2020 surplus tangible property.