Title
Transfer of Federal Assets from Palm Beach County Transit (Palm Tran) to the Regional Transit System (NB)
Explanation
The Regional Transit System (RTS) fixed route fleet consists of one hundred four transit buses. Sixty-six percent of this fleet exceeds their useful life expectancy. In order to maintain service levels and manage fleet costs, RTS is purchasing new buses as funds become available. RTS desires to acquire seven (7) 40' heavy-duty diesel powered transit buses from Palm Tran. These buses have not yet reached their useful life expectancy. Palm Tran has recently acquired new buses and desires to transfer the remaining balance of the Federal interest on seven (7) buses to RTS. These Buses are 1995 Flexible transit buses with an average of 430,000 service miles. These assets are in good condition and can be placed back in service with minimal maintenance. The addition of these assets will allow RTS to retire buses that are 1982-year models and a burden to the system to keep them in service.
Using a straight-line depreciation the current value of each asset would be $39,084.50 or a total of $273,591.50 would be assumed by RTS. Palm Tran has authorized the transfer of the aforementioned assets at no cost to RTS. City Commission approval is required in order to accept these Federal assets.
Fiscal Note
No fiscal impact.
Recommendation
The City Commission approve the transfer of federal assets from Palm Beach County Transit to the City of Gainesville Regional Transit System.