TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Vehicle Disposal
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving the disposal of vehicles by sale or by other means most advantageous to the District.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Depending on the method used to dispose of the vehicles, it provides the District an opportunity to regain proceeds from the sale of items that have long lost their usefulness.
BUDGETARY/FISCAL IMPACT:
Depending on the method used to dispose of the vehicles, reimbursement should average $2,500 each for the vehicles. This is based on the fair market value at the time of sale.
BACKGROUND/RATIONALE:
The vehicles identified in Attachment 1 have surpassed their useful life expectancy required by the Federal Transit Administration and the District's Transit Asset Management Plan. Rehabilitation or repair costs for these vehicles exceeds their net book value and are recommended for disposal in accordance with methods outlined in Board Policy No. 461 - Disposition of District Owned Surplus Equipment, Supplies and Other Tangible District Property.
ADVANTAGES/DISADVANTAGES:
Disposal of the vehicles will ensure that parking space is available for new vehicles being purchased. There is no disadvantage to the proper disposal of the buses.
ALTERNATIVES ANALYSIS:
There are no practical alternatives to this action as these vehicles have surpassed their life cycle and space is needed for additional vehicle parking.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 19-127: Equipment Disposal
Board Policy No. 461; Disposition of District Owned Surplus Equipment, Supplies, and Other Tangible District Property
ATTACHMENTS:
1. Vehicle Disposal List
Prepared by:
Stuart Hoffman, Technical Services Manager
Approved/Reviewed by:
Jill A. Sprague, General Counsel
Claudia L. Allen, Chief Financ...
Click here for full text