BARRHEAD - The County of Barrhead will sell its surplus gravel truck trio, consisting of a Peterbilt 367 semi-truck, its associated 15-foot gravel box and hoist, and a 2011 Centerline pup trailer through Ritchie Brothers.
Councillors chose the heavy equipment re-seller over two other competitors, Hayworth Equipment Sales and Michener Allen Auctioneering, from whom the municipality received bids during their June 4 meeting.
Infrastructure director Ken Hove said the municipality retired the equipment after receiving a gravel truck combination last month.
Council awarded the contract for the replacement combination to Western Star North for $366,450 in March 2024.
Hove noted that the 2024 Capital Budget included $85,000 for the units' resale, adding Policy FN-005 (Disposal of Surplus Items), which states that surplus items must be disposed of through a competitive process.
He added public works asked the aforementioned heavy equipment re-sellers for bids.
Ritchie Brothers offered a $82,000 guarantee and 80 per cent of the proceeds over $91,000, Michener Allen offered a $51,000 guarantee and 90 per cent of proceeds over $57,000, and Hayworth Equipment offered a flat rate of $71,000.
"Upon review of recent auction results, similar units have sold anywhere from $70,000 to $90,000," Hove said, adding of the three companies Ritchie Brothers have the longest reach. "[They] sales reach is all over North America, while Michener Allen is western Canada and Hayworth Equipment is northern Alberta."
Reeve Dough Drozd asked if the companies would sell the items separately or as a unit.
Hove replied that, most likely, they would sell the truck, and its associated gravel box would be sold as a unit, while the pup trailer would be sold separately.
He added that the public works is also waiting on a replacement part for the old Peterbilt, saying the repair could cost upwards of $8,000.
"However, if it is not working, it is worth nothing at auction," Hove said.
Councilor Jared Stoik, a heavy equipment mechanic, was shocked at Michener Allen's low guarantee, calling it "ludicrous, saying they could likely get $51,000 by selling through a local auction."
Coun. Walter Preugschas said while he agreed with Stoik, depending on the final auction price, the municipality could still end up coming out equal or slightly ahead by going with Michener Allen.
Hove said that Michener Allen may still be a little hesitant after they sold another piece of surplus heavy equipment to the municipality.
"They guaranteed us $35,000, and it sold at $19,000."
