TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Fiscal Year 2018 - 2019 Third Quarter Surplus and Obsolete Materials Report
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the FY 2018-2019 Third Quarter Surplus and Obsolete Materials Report.
Body
BUDGETARY/FISCAL IMPACT:
Net Sales proceeds in the amount of $38,240.41 for the sale of obsolete vehicles and equipment have been applied to the District’s General Fund.
BACKGROUND/RATIONALE:
During the Second Quarter of FY 2018 - 2019 the District sold at auction twenty-seven (27) non-revenue vehicles and thirty (30) Paratransit Vehicles for a net return of $36,455.25. During this same period, the District sold at auction one (1) lot of transmission cores, and one (1) lot of obsolete uniforms for a combined net return of $1,785.16. All items identified in the attachment have surpassed their useful equipment life expectancy required by the Federal Transit Administration, and whose cost of rehabilitation or repair exceed their net book value. All equipment and vehicles have been sold at auction for fair market value at the time of the sale in accordance with the methods outlined in District Board Policy 461.
ADVANTAGES/DISADVANTAGES:
The Board of Directors has requested a quarterly report on the obsolete and surplus sales.
ALTERNATIVES ANALYSIS:
Staff found no practical alternatives to the course of action recommended in this report.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 461: Disposition of surplus equipment, supplies, and other tangible personal property of the District.
ATTACHMENTS:
1. Vehicle Disposal List
2. Equipment Disposal List
Approved by:
Claudia L. Allen, Chief Financial Officer
Reviewed by:
Denise C. Standridge, General Counsel
Gene Clark, Director of Procurement and Materials
Prepared by:
Fred Walls, Acting Purchasing & Materials Manager