Business Guide  

a) Sealed Bids. This method may be used by both public and private non-profit transit systems.

• A minimum of two (2) appraisals of the current fair market value of the vehicle will be required to establish a minimum bid price.
• A Fair Market Value form is included in the Inspection/ Disposition Workbook Packet to assist in getting appraisals from dealers.
• Estimates may be averaged to establish the minimum bid.
• An advertisement in local paper or paper with a large circulation shall be placed at least once allowing for not less than 7 days between the advertisement date and sealed bid opening.
• Ad must include minimum bid, place and time of bid opening.
• Sealed bids must be submitted, and award shall be made to the highest bid over the minimum established bid.
• The current grant recipient designated in the resolution by the Board of Directors, County Commissioners or City Council may keep 100% of the proceeds (after the FTA's formula is applied).

b) Public Auction. This method may be used by both public and private non-profit transit systems.

• The vehicle(s) may be sold through an advertised public auction.
• Award shall be made to the highest bid.
• The current grant recipient designated in the resolution by the Board of Directors, County Commissioners or City Council may keep 100% of the proceeds (after the FTA's formula is applied).

c) State Surplus. This method is only available to public entities. Private non-profit systems may find that their county

procurement or finance offices may be able to process dispositions on their behalf.

• Once the project receives the title, the State Surplus Property Agency can be contacted to arrange the disposition of the vehicle on the Surplus Bid sheet.
• Contacts at State Surplus can be found here - https://www.doa.nc.gov/divisions/state-surplus-property. Follow their instructions to post your vehicle(s).
  

d) Transferred Vehicles. This method may be used by both public and private non-profit transit systems.

• ​On the Inspection/Disposition form, complete the section for transferring a vehicle.
• Identify the agency vehicle will be transferred to.
• Indicate how the vehicle will be used by the agency.  
• The vehicle cannot be used by the agency in a manner that would be in competition with the transit system.
• The vehicle must be removed from the system's fleet inventory and EAM (Assetworks).
• The vehicle will not be eligible for replacement again under any of the Division's administered funding programs.
• IMD's Compliance Manager will review and if approved, the title will be forwarded to the project with the lien released.
• If a vehicle is not approved for transfer, another method of disposition must be selected.  

e) Electronic Auctioning.

• Equipment may be disposed of electronically on the Internet.
1. Agency can develop their own electronic auction procedure; or
2. ​Use an existing private or public electronic auction service.
• Prior authorization by your governing board to sell equipment electronically, as with all dispositions, will be required.
• The Federal Trade Commission has information on electronic auctions on their website.

a) Within 180 days after new replacement vehicle(s) is received, the agency must submit disposition information including:

· Type of Disposition

· Odometer reading

· Buyer/Recipient

· Provide a Sales Receipt

· Sales Receipt Date (must contain the Odometer reading, Buyer, Sale Date and Sale Amount

· Sale Amount

· Comments

· Attachment of bill of sale/sales receipt that contains the following: Odometer reading, Buyer, Sale Date and Sale

Amount

b) A request for this information will be sent by the IMD Compliance Manager after receipt of the

agency’s inspection checklist. The request will be emailed to the person completing the inspection checklist and will

come in the form of a Smartsheet Update Request. The request for information will trigger the beginning of the 90-day

timeline.

c) If you cannot submit this information within 180 days of receiving your replacement vehicles, please notify the IMD

Compliance Manager of the need of an exception.

a) The IMD Official Vehicle Disposition Tracker, as result of the information submitted, and the formula mandated by the

Infrastructure Investment and Jobs Act (IIJA) will determine the amount the agency must return.  

• NCDOT-IMD will contact transit agency directors for NCDOT-IMD subrecipients through a SmartSheet Update Request to submit information about how you disposed of your vehicle or asset.  This information requested will include the following:
• Confirmation of the VIN # for the disposed vehicle and the VIN # of the replacement vehicle,
• The Year, Model, Date in and then out of Revenue Service for the vehicle,
• The Date of Disposition, Type and Method of Disposition,
• The Odometer Reading at the Time of Disposition,
• The Buyer or Transferee Type and Name,
• Sales Amount,
• If you paid for any selling or handling fees for the sale.
• You will also need to attach any documentation for selling and handling fees, the sales receipt (which should include the name of buyer, amount sold for and date of sale).
• Once that has been fully completed, you will receive a confirmation letter restating what you submitted for you to certify by Docusign.  The letter will also include the amount your agency must return to the FTA, if there are any and instructions on how to do it.  The formula will allow the agency to retain $5,000 plus the percentage of the local share in the original award. For example, if a bus, purchased with federal assistance at an 80/20 split, is sold for the fair market value of $12,000, the recipient retains $5,000 plus 20% of the remaining $7000, or $1,400, for a total of $6,400. The recipient is required to return 80% of $7,000, or $5,600, to FTA.

b)  The Subrecipient will return the funds to IMD either by electronic means to WBS# 36226.83.2.1 or by mailing a paper

check to the IMD Compliance Manager.  The check will need to be made out to NCDOT.

c)  The same method will apply to Sales, Transfers and Casualty Losses.  The IMD Compliance Manager, is managing this process and is the contact on this going forward.  He will approve all Transfers and Casualty Losses as well.  

d) IMD will then periodically mail paper checks to the FTA at the following address:

Overnight Mail:  DOT/FAA (FTA Account),

                ESC, AMZ-300, 

                6500 S. Macarthur Blvd,

                HQS Bldg. RM 181, 

                Oklahoma City, OK 73169

​e) After confirmation of the check clearing, IMD will notate the IMD Official Vehicle Disposition Tracker to complete the process.

a) Once new replacement vehicle(s) are received and placed in service, the replaced vehicle(s) must be disposed.

b) IMD requires all Certificates of Title for vehicles purchased Federal and State funded programs to have a first lien to IMD

recorded on the titles. All titles are kept in our office files. Titles will be released when the inspection for the new vehicle

has been completed and submitted.

c) The disposition process for the replaced vehicle must be completed within 180 days after delivery of the new vehicle. The

Integrated Mobility Division’s Regional Grant Specialist (RGS) will review any changes in the vehicle replacement that

differs from the vehicle approved in the funded application. The System’s Fleet Listing, current FY application, and

vehicle replacement log must be kept current to reflect the same vehicle(s) that are requested for disposition.

Approved changes must be indicated/noted under the current Federal Fiscal Year application by the RGS with

notification to the Procurement Officer and to the Administrative Assistant.

d) Within sixty (60) days after taking delivery of the new vehicle, the system must remove the tag and cancel the insurance

on the vehicle to be disposed.

e) Before vehicles are sold or transferred, all markings, lettering or system logos must be removed from the vehicles. Please

note this is a responsibility of the transit system and no vehicle is to be sold or transferred with system name, phone

number, or logo displayed on the vehicle.

f) IMD will release titles for replaced vehicles only to the owner (grant recipient). Once the title is received, the project

may proceed with the disposition of vehicle.

g) The Grantee must inform the Compliance Manager by email that they need to report their Vehicle

Disposition. They will then receive a request to submit all required information.

h) Other vehicle disposition Issues.

· Vehicle(s) that are less than ten (10) years old and have not met the useful life requirement may be disposed of

with prior approval by IMD.

· Vehicle(s) that are ten (10) years old or more that have not met the useful life requirement for mileage will be

eligible for disposition with prior approval of the Division but shall not be replaced.

· Disposition proceeds that are retained after the FTA mandated formula is applied, may be retained by the current

grant recipient and must be used for transit purposes.

· If the vehicle has not met the “useful life” requirement, the procedures outlined in the first two bullets shall apply.

· Administrative Staff Vehicle. Systems are permitted to retain one replaced vehicle for use as an “Administrative

Staff” vehicle. It must be marked for administrative use only and may not be used for revenue service. This is a onetime

ONLY event per system.

· Disposal Without Replacement (Excess Vehicle Disposition): The option for disposal of vehicles without replacement

requires the approval of the Regional Grant Specialist. If a vehicle has met its useful service life, a grantee may

request to dispose of it without replacement to reduce their fleet size. If a vehicle is at least ten (10) years old, but

has not met the useful service life standard, a grantee may request to dispose of it without replacement. If a vehicle

is less than ten (10) years old and it has not met its useful service life, a grantee may request to dispose of it without

replacement. However, a monetary reimbursement for the mileage shortage will be required to be remitted to IMD.

· If a transit system elects to excess a vehicle by means of transfer to another transit agency, protocol will depend on

whether or not the original local share (10%) was bought out by the transit agency receiving the transferred vehicle.

(1) If the transit agency receiving a transferred vehicle wishes to have that vehicle replaced at the time of meeting

useful life, that agency must pay the local match share to the original purchaser of the vehicle. The remaining

local match share will be calculated utilizing straight line depreciation. If the system receiving the transferred

vehicle declines to provide the match, then the transferred vehicle(s) will NOT be eligible for replacement upon

meeting useful life. A letter will be issued from IMD to both agencies involved in the vehicle transfer dictating

the terms of the transfer.

· Proceeds received from vehicles that are sold or due to casualty loss, originally purchased with state or federal

funds, must be used in the Transit Program.

a) Replacement eligibility may be determined by referring to the Capital Replacement Schedule which is distributed each

grant cycle with the application.

b) Once the replacement is purchased, the replaced item may be disposed.

c) All data and information should be erased from the drives and the software removed. Contact your local IT support

office for assistance.

d) When transferring these items to other agencies or groups, prior approval by IMD staff is required. Submit your request to

the Compliance Manager by email. You will receive a written approval or disapproval.​

a) Communication equipment is eligible for replacement at 6 years.

b) Replacement eligibility for office furniture and equipment and other capital equipment may be determined by referring

to the Capital Replacement Schedule, distributed with the grant application each fiscal year.

· After the replacement equipment is purchased, the replaced item may be disposed of following the methods using

the Disposition Process and Methods outlined above.​

a) N.C. Accident Report (DMV-349) or N.C. Incident Report (fire casualty)

b) Correspondence from Insurance Company indicating the amount of the settlement of proceeds.

a) Minivans, standard vans, center aisle vans, conversion vans and lift equipped vans with 15 passengers or less must have

a minimum of 100,000 miles.

b) Medium-duty transit buses (20’-28') (formerly cutaway buses) must have a minimum of 100,000 miles.

c) Medium-duty transit buses (approximately 30’) must have a minimum of 350,000 miles.

d) Heavy-duty transit buses (approximately 30’) must have a minimum of 350,000 miles.

e) Heavy-duty transit buses (35’-40’) must have a minimum of 500,000 miles.

a) If a replacement vehicle was already budgeted in the current application or on order, the totaled vehicle can be

disposed and the insurance proceeds retained. The proceeds must be used in the Transit Program. NCDOT-IMD still

retains a financial interest in the replacement vehicle if the value of the casualty loss vehicle is greater than or equal to

$5000.

b) If no replacement vehicle has been budgeted for this totaled vehicle in the current application or is on order, the

system may use the proceeds towards a replacement vehicle following the correct procurement methods. NCDOT-IMD

still retains a financial interest in the replacement vehicle if the value of the casualty loss vehicle is greater than or equal

to $5000. If a system wishes to apply for reimbursement for local funds used for vehicle replacement, they may do so on

the next available grant cycle.

c) If the system chooses not to use the proceeds to replace the vehicle at the time of the loss and keeps the proceeds, no

other vehicle, either a replacement or expansion, may be ordered for that system now or in the future. If a system

wishes to apply for reimbursement for local funds used for vehicle replacement, they may do so on the next available

grant cycle.

d) Vehicles that have been totaled, but have not met the above “Casualty loss criteria”, may be disposed of and the

insurance proceeds applied as follows:

· Return to IMD either the federal and/or state interest of the unamortized value of the vehicle based on straight line

depreciation of the original purchase price or the federal and/or state interest of proceeds, whichever is greater; or

· Apply 100% of net proceeds to the acquisition of the same model year, or newer, like-kind vehicle. Any additional

costs, if more than the proceeds, are to be met by the grantee. Excess proceeds are to be returned to IMD, with

the grantee retaining the pro-rata local share.

e) Once all the required documentation is received by IMD, a letter along with the title will be forwarded to the grantee

within 30 days. The letter will address the options to grantee regarding the casualty loss.

· If the vehicle has met or exceed the “Casualty loss criteria”, the grantee will have the options listed above for the

settlement proceeds.

(1) If a new replacement vehicle is scheduled the system may keep the proceeds and use the proceeds toward

transit related needs.

(2) The system may apply the settlement proceeds toward a replacement vehicle; or

(3) The system may choose to keep the proceeds and use the proceeds for transportation-related needs. No other

vehicle, replacement or expansion, may be purchased for the system to replace the shortage in the fleet.

(4) Provide in writing or by email to IMD which of the last two actions they will choose within 60 days.

· If the vehicle has not met the “Casualty loss criteria”, the grantee will receive instructions in their letter.

(1) Return the federal and/or state share to IMD within 30 days. No other vehicle, replacement or expansion, may

be purchased for the system.

(2) Provide in writing that they will purchase a “like-kind” vehicle within 60 days.