TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2021-22 Fourth Quarter Surplus and Obsolete Materials Report
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the FY 2021-22 Fourth Quarter Surplus and Obsolete Materials Report.
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 $11,047.50 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 parts and equipment on a quarterly basis. During the Fourth Quarter of FY 2021-22 the District sold at public auction three (3) revenue vehicles for a net return of $11,047.50. All items identified in the attachment have surpassed their useful life expectancy required by the Federal Transit Administration and the cost of rehabilitation or repair exceeds their net book value. 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 District Board Policy 461.
ADVANTAGES/DISADVANTAGES:
There are no advantages or disadvantages associated with this report.
ALTERNATIVES ANALYSIS:
This report is informational in nature; therefore, no alternative analysis is required.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 461: Disposition of Surplus Equipment, Supplies, and Other Tangible Personal Property of the District.
ATTACHMENTS:
1. FY2021-22 Fourth Quarter Surplus and Obsolete Materials Report
Prepared by:
Ryan Banea, Purchasing Manager
Approved/Reviewed by:
Fred Walls, Director of Procurement and Materials
Chris Andrichak, Chief Financial Officer