MET Transit has six used transit buses that it no longer needs.  The six buses are retired GMC Nova DTS Coaches that were recently replaced with new, smaller style buses built by Champion.  Bus manufacturers do not take trade-ins with new bus purchases as the new buses are traditionally sold factory direct, subsequently no dealer network is available to handle the used buses.  All of the used buses were purchased in 2002 and all have approximately 200,000 miles.  The biggest problem with the Nova DTS buses was that the manufacturer closed its U.S. manufacturing plant shortly after these buses were delivered; subsequently, finding available parts became very difficult.  The MET will solicit for bids by running ads in both national transit and local publications, and contacting parties that previously have shown interest in the buses.  Staff feels this is a better way to get the most possible value from disposing of these buses; as the ad notifications can be viewed by companies and operations that may be looking for this type of bus, versus just running them through a local auction.  Should any of the buses not receive any interest or bids, the backup plan would then be to put the remaining buses in the City's vehicle auction or to scrap them.

City Council may:

• Approve declaring the six 2002 Nova DTS buses as surplus so staff can dispose of the buses; or
• Disapprove declaring the six 2002 Nova DTS buses as surplus and advise staff on how to proceed.

It is estimated that the buses may sell for as little as $1,500 or as much as $5,000.  Since two of the buses do not run, the MET may get less for those since they may have to be scrapped.  Staff estimates that revenues should total at least $8,000, but expects the amount to be higher.

Staff recommends that the City Council declare the six 2002 Nova DTS buses as surplus equipment and allow staff to dispose of the buses, preferably by selling them and alternatively by scrapping them.