Comments on Lease with New York City

The Postmaster General requested a decision on the legality of a proposed new lease with New York City, New York, for the post office garage at Brooklyn, New York, questioning: (1) whether the agreement submitted by New York City may be approved; (2) whether the cost of repairs, maintenance, and insurance may be defrayed from the appropriation for Vehicle Service; and (3) whether the cost of equipment items, the personal property of the former owner, may be acquired under the Service Vehicle appropriation. GAO held that: (1) the lease may be approved; (2) the appropriation for Vehicle Service may be used for repairs, maintenance, and insurance, provided that an itemized statement of all expenditures made for repairs and maintenance be sent to the Postal Accounts Division; and (3) while the appropriation provided for rental of garage facilities, there was nothing contained therein authorizing the purchase of equipment. Accordingly, the lease may be approved, with maintenance costs to be defrayed from the service vehicle appropriation. The costs of the former owner's equipment may not be so defrayed.