Guidelines for Asset Disposition
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The following guidelines are applicable when disposing of Federal or state funded assets:

Disposition of Real Property

  • Real property can be disposed if it is no longer needed for any transit purpose or it has been deemed surplus property.
    • If real property is no longer needed for transit purposes, the Subrecipient must request in writing to PTN to dispose of the property. PTN will guide the Subrecipient of disposal process.
    • If the real property is deemed surplus, the Subrecipient must request in writing to PTN to dispose of the property. The letter must explain identify and explain the reason for the excess property. If approved, PTN will guide the Subrecipient through the process of disposition.

Disposition of Rolling Stock  

  • Rolling stock dispositions may occur when the vehicle has met its useful life benchmarks in age or mileage (or both) and has a per unit market value of less than $5,000 Useful life is determined by the vehicle’s size and type. If the unit’s value exceeds $5,000, these vehicles require an additional level of approval due to their value.
  • Subrecipient shall request vehicle disposal through their Public Transportation Coordinator (PTC) by providing the following information:
    • VIN #, license plate number, current mileage and condition, reason for disposition;
    • One vehicle appraisal from at least one reputable source, such as and not limited to:  Bus Blue Book, a commercial auto dealer, insurance company, or a mechanic not associated with the agency. As a best practice, two appraisals may be submitted.
  • Once approved, PTN will release the title to Subrecipient for disposal. Once sold, the Subrecipient will need to submit a final bill of sale to their PTC for approval and reinvest the proceeds back into the program. 
  • Vehicles that are no longer needed for their intended purchase may be transferred to another Subrecipient. The Subrecipient holding the asset should contact their PTC to discuss options.

Disposition of Equipment

  • Equipment may be disposed when it has met its useful life by submitting a request to the Subrecipient’s PTC with the following information:
    • A request to dispose of the equipment, reason for disposition, and an appraisal price of the equipment.
      • One appraisal price is needed from a reputable source such as, but not limited to, a commercial dealer for the equipment or insurance company.
  • The PTC will review the request for approval and approve the request if eligible. Once sold, the Subrecipient will need to submit a final bill of sale to their PTC for approval.
  • Equipment that is no longer needed for its intended purchase may be transferred to another Subrecipient. The Subrecipient holding the asset should contact their PTC to discuss options.

Transfer of Assets (Real Property, Fleet, and Equipment)

In situations where a subrecipient no longer needs a Federal or State funded asset, the asset may be transferred to another subrecipient as long as it is in a state of good repair and still suitable for transit use.  The Subrecipient shall contact their PTC to assist with the transfer process.

For a link of assets fleet available for transfer, visit Used Transit Vehicle Clearing House

  • Assets cannot be transferred to another department within a Subrecipient’s organization without TxDOT approval. 

Asset Insurance Proceeds and Sales Proceeds

  • Depending on the asset’s value when disposed, the proceeds shall be reinvested back into the program following this methodology:
  • Proceeds of assets sales or Insurance proceeds under $5,000 shall be reinvested back into the transit program by using the funds towards capital, administration, or operating expenditures related to public transportation.
  • Proceeds of assets sales or Insurance proceeds over $5,000 shall be reinvested back into the transit program of the same or similar nature of the assets.
Divisions

 

 

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