TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Vehicle Disposal
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider approving the disposal of 60 surplus revenue vehicles identified in Attachment 1 through one or more disposition methods authorized under Board Policy No. 461, Disposition of District-Owned Surplus Equipment, Supplies, and Other Tangible District Property.
Staff Contact:
Aaron Vogel, Chief Operating Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Depending on the disposal method, surplus revenue vehicles may provide the District with an opportunity to recover value through the sale of assets that have reached the end of their useful life.
BUDGETARY/FISCAL IMPACT:
Based on the current fair market value, staff anticipates a resale value of approximately $2,500 per vehicle. If all 60 vehicles are sold at the estimated value, the District could recover approximately $150,000.
Actual recovery may vary depending on the final disposition method, market demand, vehicle condition, and whether each vehicle is sold, transferred, traded in, negotiated for sale, auctioned, disposed of through sealed bid, or scrapped. Some disposal methods may generate less direct revenue than resale but may still be advantageous to the District by reducing storage impacts, avoiding additional handling or repair costs, supporting a future procurement, or allowing timely removal of vehicles that are no longer economical to retain.
BACKGROUND/RATIONALE:
The 60 vehicles identified in Attachment 1 have exceeded the useful life requirements by the Federal Transit Administration and the District's Transit Asset Management Plan. Staff recommends disposing of these vehicles in accordance with Board Policy No. 461 - Disposition of District Owned Surplus Equipment, Supplies and Other Tangible ...
Click here for full text