Obion County Board of Education
October 3, 2011

Agenda Item: VIII.F.

Consider/Approve Surplus and Sale of Special Education Bus

Background Information:

Dan Black, Director of the Bradford Special School District, has inquired about the possibility of purchasing a special education bus from our school district. We currently have seven (7) special education buses, with four (4) of the buses on daily routes, leaving three (3) spares. After speaking with transportation personnel, we are of the opinion that three (3) spares are excessive and if we sold the oldest bus, we would not be left in a bind. Surplus property is defined as personal property no longer having an intended use by the system or no longer capable of being used because of its condition.

The bus recommended for surplus is a 2002 model International. We purchased this bus in July, 2001 with General Purpose School funds for $67,130. This bus has four (4) useful years remaining without getting special approval to run the bus for two (2) additional years. Bradford has offered to purchase the bus for $15,000; however, state laws will not allow a direct sale without receiving sealed bids. If we continue to use the bus as a spare, after four (4) years the bus will be practically worthless. If the bus is approved by the Board as surplus, I request that the funds be added to the fund balance designation for the purchase of a special education bus when the need arises.

Although this bus is no longer of use to the System, the value of the bus is in excess of the value specified in TCA §49-6-2007(d)(1), which states “Surplus personal property in local school systems which has no value or has a value less than two hundred fifty dollars ($250), may be disposed of without the necessity of bids as required by this section.” Therefore, sealed bids will be sought to dispose of this surplus property if approved by the Board.

Staff Recommendation:

Based on the foregoing information, I do recommend that the above-noted bus be declared surplus and sold to the highest bidder. I also recommend that any/all bids under $15,000 be rejected. In addition, I recommend that the proceeds from the sale be designated for the purchase of a special education bus when the need arises.