Obion County Board of Education
April 4, 2011

Agenda Item: VII.C.

Consider/Approve Request from Transportation Department to
Declare Property Surplus and Dispose Via Trade-In,
Consider/Approve Tractor Bid

Background Information:

The Transportation Department requests the Board to declare surplus one (1) 4300 John Deere tractor and one (1) 1710 Ford tractor. The Transportation Department took the tractors out of service because of condition and size. Although these tractors are no longer of any use to the System, the value of the tractors, via trade-in, 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, if declared surplus by the Board, we are requesting to dispose of the tractors via trade-in.

In addition to advertising, we solicited bids from First Choice Farm & Lawn and Tennessee Tractor for the purchase of a 50 to 55 horsepower tractor, equipped with a loader. The tractor will be used for maintenance needs at Obion County Central High School, will be used by the Bus Garage to build and maintain bus turnarounds, and will be used by maintenance personnel as needed. We received bids from First Choice Farm & Lawn ($17,450.00, with trade-in) and Tennessee Tractor ($23,289.46 with trade-in). A summary of the submitted bids is attached for your reference.

Although we have known for a while that the John Deere tractor was in bad condition, we delayed the purchase of a replacement for as long as possible. Although the purchase of the tractor was anticipated during the budget planning process for the current fiscal year, funds for the specific purchase are not set out in detail. Funding for the purchase is budgeted within the Maintenance budget, Transportation budget, and Student Body Education budget, all of which will be transferred to the Maintenance budget.  The funds that are appropriated in the FY11 budget as approved by the Board will be utilized (no increase in budgeted amounts).

Staff Recommendation:

I recommend the Board declare the above-noted tractors as surplus, approve the disposition via trade-in, and approve the bid as received from First Choice Farm & Lawn ($17,450.00) for a new tractor with loader.