Staff recommends that the City Council declare the Street/Traffic division's old road patching unit as surplus and approve the disposal, via a sale, to City of Miles City for the amount of $22,000.

Public Works recently purchased and replaced a road patching unit.  This equipment is used by the Public Works Street/Traffic division to patch potholes throughout Billings.  The road patching unit was 13 years old and had outlived its useful life, frequently in need of maintenance, and needed to be replaced.  The road patching equipment was advertised and Normont Equipment was selected as the successful bidder.  City Council awarded the contract at the November 12, 2019 Council meeting for a price of $234,433.  Unfortunately, Normont Equipment would not accept the old road patching unit on trade-in.  Therefore, staff researched cities who utilize this surplus equipment.  After research by staff, the fair market value of the equipment is estimated at $22,000.  The City of Miles City has a need for the equipment, available budget, and has agreed to purchase the old road patching unit at the fair market value price.  Subsequently, Public Works would like to sell the old road patching unit to City of Miles City for $22,000.

City Council may:

• Approve designating the road patching unit as surplus and authorize the sale and disposal of this old road patching unit to the City of Miles City, or;
• Disapprove the sale and subsequently scrap and dispose of the road patching unit for scrap.

The 2006 road patching unit had no trade value, but by selling to another city entity the Street/Traffic division will collect $22,000 in revenue from the sale of the surplus equipment.