Template revised January 10, 2019e.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
January 10, 2023
DATE: December 6, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Eric Schaefer Senior Manager AVM, Daniel Alter Manager AVM
SUBJECT: Authorization for Disposal of Excavator and Backhoe
Amount of this request:
Est. Sale Value
$65,000
ACTION REQUESTED
Request commission authorization for the Executive Director, or his designee, to take all
necessary steps to dispose of surplus personal property –, a 1997 Excavator and a 1997 Backhoe
at the Seattle-Tacoma International Airport, in accordance with the General Delegation of
Authority and Port Policy AC-13.
EXECUTIVE SUMMARY
The excavator and backhoe are in process of being replaced and are no longer needed. The
excavator estimated resale value of $35,000, while the backhoe was estimated at $30,000. The
estimated value requires commission authorization before being disposed.
Both the excavator and backhoe are in process of being replaced with new units as they are at
the end of their useful life.
Other Key Points:
• The excavator and backhoe are in the process of being replaced through the Aviation
Division small capital project process approved in 2021.
• The new equipment will provide increased reliability for required airfield work.
• Two units may be traded in to reduce purchase price of new units.
Estimated Valuation (pending appraisal)
Per Unit
Total Value
1997 EXCAVATOR, CATERPILLER, 313B
Vehicle # 8580, Ser# 9PR01380
$35,000
$35,000
1997 Caterpillar, Backhoe 416C
Vehicle # 9580, Ser# 4ZN01198
$30,000
$30,000
COMMISSION AGENDA – Action Item No. 8e Page 2 of 4
Meeting Date: January 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
Both the excavator and backhoe are being replaced through small capital projects. These pieces
of equipment do not have another Port wide need and are at the end of their useful life.
The equipment fits Port Policy AC-13 which 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.”
New incoming units allow for improved operational efficiency through a reduction of downtime
and improved design. The older units if retained are at end of life and are no longer efficient to
keep around. If a need arose that required equipment renting would be a more cost-effective
solution.
DETAILS
Once authorized unit will be disposed following Port Policy AC-13.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Retain the two vehicles for unanticipated future use.
Cost Implications: There would be no revenue generated from sale of equipment through public
auction. Estimated resale value $65,000 and increased annual maintenance and repair of
$10,000/year.
Pros:
(1) Backup equipment could assist with unknown future need.
Cons:
(1) Retaining the equipment will increase maintenance and repair costs.
(2) Equipment parking/storage space is very limited for essential equipment. We do not
have space to park/store these non-essential spare equipment items
(3) Eliminates potential sales return.
(4) Equipment is not expected to be needed or used.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8e Page 3 of 4
Meeting Date: January 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Dispose of the excavator and retain the backhoe.
Cost Implications: No revenue from sales estimated at $30,000 and increased annual
maintenance and repair of $5,000/year.
Pros:
(1) Removes excavator from the fleet that is beyond useful life.
Cons:
(1) Increase maintenance and repair budget, with projected low use.
(2) Takes constrained space on airfield for projected low use equipment.
(3) Eliminates potential sales return.
(4) No current need for this equipment.
(5) 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 $65,000.
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.
FINANCIAL IMPLICATIONS: NA
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$0
$0
Previous changes – net [Delete if not
needed]
0
0
0
Current change [Delete if not needed]
0
0
0
Revised estimate [Delete if not needed]
0
0
0
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this
request
0
0
0
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. 8e Page 4 of 4
Meeting Date: January 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds: NA
Financial Analysis and Summary
Project cost for analysis
Business Unit (BU)
Effect on business
performance (NOI after
depreciation)
IRR/NPV (if relevant)
CPE Impact
Future Revenues and Expenses (Total cost of ownership) NA
ADDITIONAL BACKGROUND
None.
ATTACHMENTS TO THIS REQUEST:
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.
