Obion County Board of Education
May 18, 2009

Agenda Item: VIII.H.

Consider/Approve Requests Declare Property Surplus and Dispose Via Most Economical Method


Background Information:

The Transportation Department has submitted a request to the Board to declare surplus one (1) 1995 72-passenger International school bus and one (1) 1994 GMC pick-up truck. The Transportation Department took the truck out of service due to excessive miles (over 200,000) and it is no longer of value. The bus has one (1) year of service remaining as a substitute bus; however, the bus will require expensive repairs if we keep it in service. Although these items are no longer of any use to the System, it is estimated that salvage values of the vehicles are in excess of the value specified in TCA §49-6-2007(d)(1), which provides, “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, the System will seek sealed bids to dispose of the surplus property, pending Board approval. One (1) advertisement will list both vehicles and will run in the local newspaper for three (3) days. The sale will take place approximately ten (10) days later; however, we will reserve the right to accept/reject any and all bids, as we will compare the bids received against salvage value.

Hillcrest Elementary School has submitted a request to the Board to declare surplus football helmets that are too old to be reconditioned. Furthermore, Hillcrest requests permission to sell the helmets for $10.00 each and for the funds to be deposited to the school’s football account to offset the cost of reconditioning other helmets used in the football program. The amount of funds expected to be raised by declaring these helmets surplus is less than the amount specified in TCA §49-6-2007(d)(1), which provides, “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, pending Board approval, no bids will be solicited to dispose of this personal property.

Staff Recommendation:

I recommend the Board declare the above-noted vehicles as surplus and approve the disposition via the most economical method, i.e., sealed bids v. salvage value, whichever method will produce the greatest revenue. Furthermore, I recommend the Board declare the above-noted football helmets as surplus and approve the disposition via the most economical method, i.e., sell the personal property at a cost of $10.00 each with the proceeds deposited to the school’s football account and used within the program.