Broward County Commission Regular Meeting

A. MOTION TO ADOPT budget Resolution No. 2014-267 transferring $147,042 from Reserves in the Transit Operations Fund (0045) to the Transit Division's Capital Fund (9705). Funds will go towards the purchase of a replacement 40-foot bus that was totaled due to an accident, instead of reimbursement to the Federal Transit Administration (FTA) for the remaining federal interest (undepreciated value) in the bus.
 

ACTION:  (T-10:22 AM)  Approved.
 
VOTE: 8-0.  Commissioner Jacobs was not present.

B. MOTION TO ADOPT unanticipated revenue Resolution No. 2014-268 within the Transit Division's Capital Fund (9705) in the amount of $147,042, for the purpose of replacing the totaled bus instead of reimbursing the FTA for the remaining federal interest (undepreciated value) in the bus.

ACTION:  (T-10:22 AM)  Approved.
 
VOTE: 8-0.  Commissioner Jacobs was not present.

FTA guidelines (Circular 5010.1D) require either reimbursement for the disposition of property (rolling stock) before the end of service life based on straight-line depreciation methods, or allow the grantee to offset the reimbursement by putting the funds towards a replacement vehicle (Like-Kind Exchange). In addition, transfers from the reserve account and unanticipated revenue resolutions require Board approval.

Provides partial funding for the purchase of a replacement 40-foot bus, instead of direct reimbursement to the FTA as required under FTA Circular 5010.1D.

None

On May 12, 2013, the Transit Division's (BCT) bus No. 0831, was involved in an accident when it struck a utility pole, after being struck by another vehicle which had run a stop sign.  As a result of the accident, the bus was declared a total loss. The bus was purchased with Federal Transit Administration (FTA) funds in 2008 at a cost of $336,072. The bus was procured with federal grant funds and is being removed from service before its useful life of twelve years. As a result, the County is required to reimburse the FTA the unamortized straight-line depreciation costs of the vehicle ($147,042) unless the FTA grants approval for the Like-Kind Exchange alternative. Under the Like-Kind Exchange alternative, BCT has the option of putting the funds, that otherwise would have to be paid back to FTA, towards the purchase of a replacement vehicle. BCT requested and received approval from the FTA for a Like-Kind Exchange (Exhibit 3). BCT is requesting the transfer of $147,042 from the County’s reserve account to be used towards the replacement costs of a 40-foot bus, instead of the County having to reimburse the FTA for its remaining federal interest in the bus. 

Broward County self-insures the bus fleet for physical damage losses such as comprehensive or collision. Generally, BCT would make direct repairs to the damaged bus at its own facility, then the Risk Management Division’s Liability Claims Section would seek recovery of the cost of repairs (part and labor) from the at-fault party through subrogation. In this case, the costs to repair the vehicle exceeded its value.