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Exh 8C,.. Qr May 22, 2000 City of Atlantic Beach City Commission Meeting Staff Report Agenda Item: Offer to Purchase Fire Truck Date: May 16, 2000 Submitted by: David E. Thomps'~on Director of Public Safety/Chief of Police Background: When the contract with Jacksonville was approved last year, the City of Atlantic Beach retained two (2) fire trucks. One of the trucks was over 20 years oid, and the newer truck was purchased new in 1979. The disposition of the trucks was discussed at a City Commission meeting, and the Commission authorized staffto seek bids for the trucks, and to bring those bids back to the City Commission for a decision. At that time, some City Commissioners expressed reservations about selling the equipment without having more time to evaluate Jacksonville's work under the contract. Since that time, we have had several months to continue to evaluate Jacksonville's work, and it appears as though they are living up to the terms and conditions of the contract. They are providing a higher level of emergency medical response to Atlantic Beach citizens at the agreed upon price. I have had several meetings with Jacksonville Beach officials who have expressed an interest in purchasing the newer truck. Last month, Jacksonville Beach Fire Chief Joe Lewis offered $35,000 for the purchase of the truck, subject to Jacksonville Beach City Council approval. Jacksonville Beach and Ryder have checked out the truck, and other than a few minor adjustments, they have found it to be in acceptable condition. I have made a few inquires from other sources relative to the value of the engine. If we list it with a broker (fora 10% fee), then we can probably get close to $50,000 for the truck. After the broker fee, it would leave Atlantic Beach $45,000. However, there are no guaranties relative to selling it at that price. Since the truck has been sitting for close to a year, it may not bring as high a price. There is also the possibility that anyone buying it might require that it pass pump testing or road testing, which could require the investment of Atlantic Beach funds to bring it up to an acceptable level. If Atlantic Beach wants to be a good neighbor and sell Jacksonville Beach the truck at $35,000, then Jacksonville Beach obtains a truck at a good price. Atlantic Beach receives cash for a fire truck that is not being used, and Atlantic Beach is out of the fire business as long as the contract with Jacksonville continues to be successful. ,~ .. ~ SC May 22, 2000 Note: The older fire truck is being used by Public Works to water plants and trees, and it is not part of this negotiation. The direction from the City Commission was to bring offers back to the City Commission for consideration, and this information is being provided for that purpose. Recommendations: - To provide direction to staff to sell the fire truck to the City of Jacksonville Beach, or to direct staffto seek additional offers for the purchase of the fire truck. Attachments: Reviewed by City Manager:, Item Number: