Obion County Board of Education
October 3, 2011

Agenda Item: VIII.D.

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


Background Information:

The Transportation Department requests the Board to declare surplus four (4) 1996 International 66- and 72-passenger school buses (numbers 77, 78, 79, and 51). The Transportation Department took the school buses out of service due to age. Although these buses are no longer of any use to the System, it is estimated that salvage value of the buses 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. In addition to advertising locally, we will advertise statewide and nationally for sealed bids.

Lake Road Elementary School has submitted a request to the Board to declare surplus cheerleading and basketball uniforms that are no longer of any use to the School due to age. Furthermore, Lake Road requests permission to sell the uniforms and for the funds to be deposited to the school’s athletic fund to help offset the cost of future purchases. The value of the uniforms 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.

Over the years, several items of surplus property (personal property no longer having an intended use by the system or no longer capable of being used because of its condition) have been placed in the old Career Technology facility. These items include, but may not be limited to, school furniture, junk cars, old CTE machinery, scrap wood, scrap metal, etc. To clean this area and prepare for Central Office to relocate, we are asking the Board to declare these items surplus and allow the items to be disposed via the most economical method. For items with some value, we will attempt to dispose of these items by accepting sealed bids as specified in TCA §49-6-2007(b), which states “All local school systems that receive any state funds shall sell all surplus property within ninety (90) days of its being declared surplus, to the highest bidder after advertising in a newspaper of general circulation at least seven (7) days prior to the sale.” Because there is no guarantee that all of the items will be sold, we request permission to dispose of the remaining items via recycling.

Ridgemont Elementary School, through the School Nutrition Department, has submitted a request to the Board to declare surplus cafeteria trays that are no longer of any use to the School due to age. There are approximately 310 trays that, upon Board approval, will be offered for sale. Funds generated from the sales will be deposited to the Central Cafeteria School Fund. The value of the trays is expected to be 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 through the newspaper to dispose of this personal property; however, bids will be solicited by postings at the school.

Staff Recommendation:

I recommend the Board declare the above-noted items as surplus and approve the disposition via the most economical method as described above.