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SR 07-12-2011 3GCity Council Meeting: July 12, 2011 Agenda Item: To: Mayor and City Council From: Scott Ferguson, Fire Chief Subject_ Donation of two previously loaned fire apparatus. Recommended Action Staff recommends that the City Council authorize the City Manager, by transfer of title, to donate two previously loaned fire apparatus to the City of Bayou La Batre, Alabama. Executive Summary The City of Santa Monica Fire Department loaned one fire engine and one ladder truck to the City of Bayou La Batre, Alabama shortly after the August 2005 Hurricane Katrina. The agreement was structured to allow donation at a later date, as the apparatus were in reserve status and in the process of being replaced. The City of Bayou La Batre recently requested to finalize the donation process. The donation will have no negative financial impact on the City of Santa Monica. All required documents are in order and can be executed in a timely fashion. Discussion The Fire Department loaned one fire engine and one ladder truck to the City of Bayou La Batre to aid them with their recovery process from the devastating effects of Hurricane Katrina. At the time, the apparatus were third-line reserves and soon to be removed from service. The Fire Department presently has adequate reserve apparatus. The loaned apparatus have far exceeded their useful lifespan for the rigors of high use in a metropolitan environment and are of no operational value to the Santa Monica Fire Department. The City of Bayou La Batre has indicated the apparatus are still serviceable for their rural needs, yet are reluctant to spend municipal funds on some needed repairs to loaned equipment. The decision to loan rather than donate at the time was based on the ability to expedite the process and to leave an opportunity to reclaim the equipment at a later date if appropriate. 1 The original Agreement for loan of Vehicles and Equipment, dated 20 October 2005, between the City of Santa Monica and the City of Bayou La Batre included language to transfer title of subject vehicles upon agreement from both parties. The City of Bayou La Batre recently requested to exercise this agreement to expedite needed repairs. Financial Impacts & Budget Actions The current values of the apparatus are less than $5,000.00 each, and considering the ladder truck needs repairs and certification, its value is likely substantially less. The expense to pay for shipment back to Santa Monica, or arrange for an auction in Alabama, exceeds their value. By transferring title of the apparatus, the City of Bayou La Batre is saving the City of Santa Monica shipping and disposal costs. If the City of Bayou La Batre no longer had a need for this equipment, additional costs would be incurred by the City of Santa Monica in the removal and disposal of the equipment. Prepared by: Walter Shirk, Division Chief Forwarded to Council: Rod Gould City Manager 2 Chief, Fire Department