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During the budget planning process, the transportation supervisor brought to my attention that it was in the rotation to purchase a maintenance truck. Truck #58 is a 1992 GMC with over 200,000 miles and it has become a high maintenance issue. During our budget meetings, we agreed that if diesel fuel stayed below budget, we would solicit bids and ask the Board for approval to purchase the truck via a budget amendment from the diesel fuel line item. To date, we are approximately $15,700 under budget in the diesel fuel line item and are $2,500 under budget in other transportation equipment budgeted for the year.

If the Board accepts the bid, the attached budget amendment will be submitted for consideration. This amendment transfers sufficient funds from the diesel fuel line item to transportation equipment line item for the above-noted purchase.

In addition, the transportation department requests that the Board surplus Truck #58 to the Career Technology Center. Although the salvage value of this vehicle is most likely 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,” the vehicle will remain within the system until repaired. By declaring the truck surplus and transferring it to the Career Technology Center, students in auto body and auto mechanics will have an opportunity to use their skills in the repair work. Funds from the student activity account will be used for the repairs and upon completion the truck will be sold to the highest bidder with any profit remaining in the student activity fund. Disposition of the truck will, in essence, be a fundraiser for CTE organization and will be at no cost to the System.

Based on the foregoing, I recommend approval of the low bid as submitted by Union City Ford in the amount of $16,125.35; I recommend approval of the budget amendment for the purchase of the vehicle; and, I recommend approval to declare Truck #58 surplus and the transfer to the Career Technology Center to be used as a fundraising activity for the students.

Obion County Board of Education October 5, 2009	Agenda Item: VIII.E.

Consider/Approve Bid for Maintenance Truck, Approve General Purpose School Fund Budget Amendment, Declare Transportation Vehicle Surplus, and Dispose Via Transfer

Background Information: In addition to advertising, we solicited bids for the purchase of a maintenance truck (specifications attached). As indicated on the specifications, we hand delivered the request for bids to all Obion County automobile dealerships. We received bids from Union City Ford, Herman Jenkins Motors, Castellaw Toyota, and Rick Hill Nissan. The low bid was submitted by Union City Ford in the amount of $16,125.35. During the budget planning process, the transportation supervisor brought to my attention that it was in the rotation to purchase a maintenance truck. Truck #58 is a 1992 GMC with over 200,000 miles and it has become a high maintenance issue. During our budget meetings, we agreed that if diesel fuel stayed below budget, we would solicit bids and ask the Board for approval to purchase the truck via a budget amendment from the diesel fuel line item. To date, we are approximately $15,700 under budget in the diesel fuel line item and are $2,500 under budget in other transportation equipment budgeted for the year. If the Board accepts the bid, the attached budget amendment will be submitted for consideration. This amendment transfers sufficient funds from the diesel fuel line item to transportation equipment line item for the above-noted purchase. In addition, the transportation department requests that the Board surplus Truck #58 to the Career Technology Center. Although the salvage value of this vehicle is most likely 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,” the vehicle will remain within the system until repaired. By declaring the truck surplus and transferring it to the Career Technology Center, students in auto body and auto mechanics will have an opportunity to use their skills in the repair work. Funds from the student activity account will be used for the repairs and upon completion the truck will be sold to the highest bidder with any profit remaining in the student activity fund. Disposition of the truck will, in essence, be a fundraiser for CTE organization and will be at no cost to the System. Staff Recommendation: Based on the foregoing, I recommend approval of the low bid as submitted by Union City Ford in the amount of $16,125.35; I recommend approval of the budget amendment for the purchase of the vehicle; and, I recommend approval to declare Truck #58 surplus and the transfer to the Career Technology Center to be used as a fundraising activity for the students.