Gunnison Valley RTA Public Transportation
Federal, State and Local Vehicle Insurance and Disposal Requirements – FTA/State Funded Vehicle Disposal Procedures
For vehicles to be disposed of by GVRTA that have passed FTA and State defined minimum useful life requirements (Appendix B), GVRTA first contacts CDOT to notify appropriate staff that the vehicle(s) will be disposed of and to request a lien release of the title if this has not already occurred. GVRTA then advertises in various newspapers and online to post notice of the pending disposal of the vehicle(s). General information about the vehicle(s) is documented in the advertisement and additional information and inspection of the vehicle(s) is allowed upon request. Sealed bids are requested from interested parties by a specific date and time. Once the closing date and time for bid submission has passed, bids are opened and the vehicle awarded to the highest bidder.
CDOT and FTA are entitled to the remaining Federal and/or State interest proceeds of any disposed vehicle originally purchased with FTA or State grant funds with a sale price above $5,000. If above
$5,000, FTA and CDOT are to be reimbursed the original grant contract defined proportionate federal/state share of either the fair market value or the net proceeds of the sale. Net proceeds are
proceeds generated less any expense GVRTA has used to sell the vehicle, which includes any associated repairs required ahead of sale. GVRTA must be able to document any associated repair costs affecting the net proceeds above $500.
GVRTA is to issue a check to CDOT’s Division of Transit and Rail for the pre-determined federal/state share of the disposition proceeds as soon as the funds have been received, allowing no more than 30 days to pass after the transaction has concluded.
The proportionate local share proceeds may be retained by GVRTA and must be used for transit related purposes. CDOT prefers the local share proceeds to be used as match for a future capital grant purchase. Vehicle sale proceeds that yield $5,000 or less do not require any proportionate payment back to CDOT or FTA. All sale proceeds, regardless of dollar amount, are to be recorded in COTRAMS with the vehicle’s inventory disposition record.
GVRTA retains on file for a period of three years after disposition all advertisement notices, bid responses, and sales receipts.