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Surplus sale makes impact

Thursday, January 21, 2010
(Photo)
The asphalt plant, which the city purchased for about $100,000 more than 10 years ago, was sold for $75,000 during an online surplus auction which ended Tuesday. The asphalt plant was one of 22 items which sold for a total of more than $115,000.
(Tribune photo illustration)
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The City of Fort Scott more than exceeded expectations following a recent auction of surplus equipment.

As the surplus auction ended Tuesday, the final number was much larger than originally anticipated by the city. According to Fort Scott City Manager Joe Turner, the city was only expecting to get just over $47,000 out of the auction, however the city ended up bringing in more than $115,500.

"We didn't dream it would be at $115,000," Turner said.

The biggest reason for the profit was the sale of the city's asphalt plant which became expendable when city crews quit major street paving projects. The city purchased the plant more than 10 years ago for about $100,000 and expected to get $15,000 in the auction. Much to the surprise of Turner, the asphalt plant sold for $75,000.

"We knew that was going to be the big ticket item, but we didn't realize it was going to be that big of a ticket item," Turner said.

Another item which sold at a significantly higher price was a merry-go-round which was removed from a city owned park for safety reasons. Turner said the city's insurance company said it was a safety hazard so it was removed. The merry-go-round was expected to sell for $30, but ended up going for $1,350.

"Somebody wanted it ... maybe they wanted it for their back yard," Turner said.

Not all items were sold for more than expected. Several vehicles were sold below expectations as well as a mower and a canoe.

"There were a few items that we got a little bit less," Turner said.

Turner believes that the success of the auction was due in large part to the extended coverage area by using the Internet. On Dec. 15, 2009, the Fort Scott City Commission approved a contract with Purple Wave Auction, Inc., of Manhattan for the sale of the equipment. The use of the Internet expanded the auction from local buyers only, as in previous auctions, to global buyers.

"Anybody that had access to the Internet could (bid) on (the auction) ... that is probably the reason why we received so much more money that we anticipated," Turner said.

As for the money, Turner said he hopes to put the money back into the Equipment Replacement Fund and also help pay off the mill and overlay machine.

"What we would like to do is ... pay the overlay machine off and replace other equipment as needed," Turner said.

The success of the auction has led the city to prepare for another auction. Turner said the city staff has begun to do an inventory of all supplies and equipment to see if there are more items the city could get rid of.

"We want to start the process," Turner said. "This went very well so we're looking at our next step."


The Receipt

Receiving more than double the amount expected in the surplus auction, city officials were more than happy. The information below displays the items included in the surplus auction along with each item's estimated value and the amount for which it was sold.

ItemEstimateActual
Asphalt Plant$15,000$75,000
Case Backhoe$4,500$7,400
Cat Scraper$6,500$12,500
International Tractor$3,200$3,300
International Fire Truck$5,000$6,200
Passenger Bus$6,000$2,000
1995 Crown Victoria$900$600
1995 Crown Victoria$900$400
1998 Chevy Venture$750$1,050
1997 Crown Victoria$750$675
1991 Crown Victoria$500$775
1997 Ford F-150$1,500$1,450
6-foot Box Blade$125$300
Frontier Finish Mower$450$575
Grasser Mower$550$825
Bush Hog Finish Mower$300$240
Air Compressor Tank$20$55
Wood Grain Storage Bin$50$160
Rabbit Cages$55$275
7-foot Rear Blade$250$350
Merry-go-round$30$1,350
Canoe$300$200
Total$47,630$115,680


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I would say that the auction company, Purple Wave, did an outstanding job. Marketing is something most municipalities don't have a good grip on. But, they don't have too when they hire a professional auctioneer. Good job to both Purple Wave and the city.

-- Posted by EDGE on Sat, Jan 30, 2010, at 8:17 PM


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