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PROPOSAL:

Remove Various Fixed Assets for Trade-in and Disposal from Monitoring & Analysis Inventory

SYNOPSIS:

AQMD Policy and Procedure No. 20 requires an annual Monitoring & Analysis inventory and the disposal of fixed assets declared surplus. The annual fixed asset inventory was recently conducted. Due to the equipment replacement program, and modernization of the air monitoring network, a significant number of items have been identified for surplus. Further, in order to receive trade-in credit toward the purchase of approved fixed assets, existing inventory assets must be declared surplus. This action is to declare as surplus the equipment determined to be obsolete or broken and not worth repairing.

COMMITTEE:

Administrative, October 23, 1998, Recommended for Approval

RECOMMENDED ACTION:

Declare items on Attachment A as surplus and authorize their deletion from the Monitoring & Analysis fixed asset inventory; and authorize the Procurement Manager to dispose of these fixed assets by trade-in credit for future equipment, direct sales, public auction, or donation.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

AQMD Administrative Policy and Procedure No. 20 establishes procedures for the approval, purchasing, tagging, physical inventory, and disposal of fixed asset equipment. This policy requires an annual inventory of the Monitoring & Analysis (M&A) and biennial inventories of all other divisions. In accordance with this policy, staff has previously requested the Board’s approval to remove equipment which had been retired, damaged, or reported missing from the inventory assets. The last request to remove surplus or missing items was approved on June 12, 1998 and represented the results of the 1997 biennial District-wide inventory and the 1997 M&A annual inventory.

During August through September 1998, M&A conducted its annual physical inventory of its equipment. Finance staff observed this inventory. Following the conclusion of this inventory, many items were noted as surplus, primarily as a result of the AQMD’s efforts to modernize its air monitoring network by replacing aging equipment. For most of the older equipment, parts are no longer available and the equipment cannot be repaired. In some instances, old equipment is given a trade-in value by vendors. Where possible, trade-ins will be utilized to reduce costs of future replacement items.

Attachment A is a list of M&A’s obsolete and non-repairable fixed assets that has already been replaced as part of the equipment replacement program. AQMD Administrative Policies and Procedures No. 20 provides that surplus property is to be surrendered to the Procurement Manager for disposal. The fixed assets listed on Attachment A have a total original cost of $293,251.95. These items are between 6 and 25 years old.

Proposal

The fixed assets listed on Attachment A represent obsolete or non-repairable equipment and furnishings, which have been replaced as part of AQMD’s replenishment program and are no longer of use to the AQMD. Staff is recommending that the assets on Attachment A, as in the past, be surplused through salvage process and disposed of either through trade-in credit for future equipment, auction, or donation to nonprofit and charitable organizations.

Resource Impacts

The proposed action will have no impact on the General Fund, but the General Fixed Assets Account Group will be reduced by $293,251.95.

Attachments

Attachment A – Obsolete and Non-repairable Fixed Assets

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