BOARD MEETING DATE: July 9, 2004
AGENDA NO. 14

Remove Electric Vehicle Fixed Assets from AQMD Inventory

SYNOPSIS:

AQMD Policy and Procedure No. 20 requires the disposal of fixed assets declared surplus. Technology Advancement has sponsored the development, procurement and demonstration of three electric vehicles converted by AC Propulsion. These vehicles have become outdated since the major automotive manufacturers have developed commercial electric vehicles and hybrid-electric vehicles. The need for demonstration purposes has been served. This action is to declare as surplus these three vehicles determined to be obsolete.

COMMITTEE:

Administrative, June 18, 2004, Recommended for Approval

RECOMMENDED ACTIONS:

1. Declare three electric vehicles from AC Propulsion described below as surplus and authorize removal of these items from the fixed assets inventory.
    
2. Authorize the auction of the AC Propulsion electric vehicles and deposit the proceeds from these into the General Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD Policy and Procedure No. 20 establishes procedures for the approval, purchasing, tagging physical inventory, and disposal of fixed assets equipment. This policy requires the disposal of fixed assets declared surplus.

Technology Advancement has sponsored the development, procurement and demonstration of several alternative fuel vehicles, including three electric vehicles (EVs) developed by AC Propulsion. These prototype EVs cost between $60,000 and $89,000. Subsequent to AQMD demonstration of these EVs, original equipment automotive manufacturers (OEMs) have developed fully certified commercial electric vehicles and hybrid-electric vehicles. The AQMD EVs are now 10 to 13 years old and have served their purpose as technology demonstration vehicles. Each vehicle presently contains various defects, and they are no longer worth repairing. They are listed below:
 

Tag No.	Base Model	Developer	VIN
38562	1991 Honda CRX	AC Propulsion	JHMED836XMS014778
38578	1993 Honda DX	AC Propulsion	2HGEH2365SH513156
38570	1994 Saturn	AC Propulsion	1G8ZE1598RZ138281

Staff has determined that these vehicles are obsolete and defective fixed assets and are not worth repairing.

Proposal

Staff recommends that the obsolete vehicles listed above be declared surplus and removed from the AQMD’s fixed asset inventory. Rather than scrapping these vehicles, these EVs will be sent to auction because there is interest in purchasing them by EV enthusiasts, and the EV community will be fully notified of this auction.

Resource Impacts

The proposed action could result in up to an estimated $50,000 being deposited into the General Fund.

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