TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: FY 2024-2025 Surplus and Obsolete Materials Report
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the FY 2024-2025 Surplus and Obsolete Materials Report.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The disposition of surplus and obsolete materials provides the District an opportunity to regain proceeds from the sale of items that have surpassed their useful life expectancy.
BUDGETARY/FISCAL IMPACT:
Net sales proceeds in the amount of $44,787 for the sale of obsolete vehicles and equipment have been applied to the District's General Fund.
BACKGROUND/RATIONALE:
In accordance with District Board Policy 461, the Materials Department is required to report the sale of obsolete and surplus vehicles, parts and equipment on an annual basis. During Fiscal Year 2024-25 the District sold at public auction nineteen (19) revenue vehicles, various obsolete parts, materials, and equipment for a net return of $44,787. All items identified in Attachment 1 have surpassed their useful life expectancy required by the Federal Transit Administration, and the cost of rehabilitation or repair exceeds their net book value. The District has now disposed of all the older 2002 MCI Coach buses and the vast majority of Van Hool buses, so this report shows a larger number of bus parts that were obsoleted and disposed of than prior years although with less proceeds due to the age and specialty of the parts.
All equipment and vehicles have been sold at public auction for fair market value at the time of the sale in accordance with the methods outlined in Board Policy 461. This report does not include the sale of real property owned by the District.
ADVANTAGES/DISADVANTAGES:
There are no a...
Click here for full text