AGENDA #4a

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:            Consideration of Disposal of Surplus Property: Two (2) Trolley Buses

DATE:            October 22, 2001

The attached resolution would authorize the sale of two (2) Trolley buses.

BACKGROUND

The Town began operating a downtown shuttle service in 1989 using two trolley buses, with routes between downtown Chapel Hill and Carr Mill Mall.  The Downtown Commission has more recently used the trolleys in private charter operations.

The Transportation Department has determined that the trolleys are beyond practical repair and have completed their useful lives. Also, there are 82 miscellaneous trolley parts that are to be sold with the buses.  It is recommended they be sold by sealed bid:

            YEAR              MAKE                                                VIN #

            1989                Chance Trolley Bus                               77475

            1989                Chance Trolley Bus                               77476

            Eighty-two (82) Trolley Bus Parts

Although the trolleys are beyond their useful lives, the Federal Transit Administration (FTA) has an interest because 80% of the trolleys were purchased with federal funds.  Therefore, the Town would need to remit to the FTA 80% of the proceeds from the sale of the trolleys. 

The Downtown Commission had expressed some initial interest in leasing the trolleys for $1 per year for tours, shuttles, weddings, and other uses.   The Commission had planned to cover some cost of operation through charters and a sponsor.  However, the Commission has since withdrawn this interest in the trolleys because of the required minimum expense involved.  

North Carolina General Statute 160A-267 allows the Town to dispose of surplus property by public auction, sealed bid, and negotiation or transfer to another governmental unit.

Recommendation

That the Council adopt the attached resolution, declaring surplus the two trolley buses and parts that are no longer needed because they are beyond practical repair and have completed their useful lives.


A RESOLUTION DECLARING TWO (2) TROLLEY BUSES AND PARTS TO BE SURPLUS AND AUTHORIZING AND DIRECTING DISPOSAL OF SAID TROLLEYS IN ACCORDANCE WITH STATUTORY REQUIREMENTS (2001-10-22/R-2)

WHEREAS, Article 12, Chapter 160A of the N.C. General Statutes and Section 4.16 of the Charter of the Town of Chapel Hill authorize the Town to dispose of surplus property; and

WHEREAS, the Town desires to dispose of the Trolley buses and parts.

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the following items are hereby declared surplus:

            YEAR              MAKE                                                VIN #

            1989                Chance Trolley Bus                               77475

            1989                Chance Trolley Bus                               77476

           

            Eight-two (82) Chance Trolley Bus Parts

BE IT FURTHER RESOLVED that the Council authorizes the trolley buses and parts to be disposed of by sealed bid in accordance with N.C. General Statute 160A-267. 

This the 22nd day of October, 2001.