Title
From the Director, Department of Transportation and Public Works, and the Airport Director, requesting authorization to enter into lease-to-own agreements for vehicular equipment in cooperation with the Department of Transportation and Public Works Fleet Management Division.
Body
Policy
County Board action is required for clarification of an operational issue of the Airport Division’s 2011 Budget.
Background
The Airport Division has found it to be beneficial to enter into leases for selected pieces of vehicular equipment over the past several years. These leases have been structured as “Lease to own” with the final settlement amount typically being one dollar ($1.00) at the end of the lease term (usually, but not always, forty eight months).
This arrangement has allowed the Airport to maintain a number of typically smaller vans and automobiles used exclusively at the airport. Because the activity is limited to the airport, the leased vehicles are used for 10+ years with relatively low mileage and relatively low maintenance costs.
At the end of the lease term, the airport/county takes title to vehicles that are low in operational costs and allows the airport to rotate vehicle use for appropriate needs and to dispose of an older vehicle.
All leases have been negotiated by the DTPW Fleet division, and this report contemplates that this practice would continue for all future leases.
This arrangement has worked well for the Airport. Airport funds have been used to acquire and maintain the needed number of a variety of vehicles for exclusive airport needs at no expense or obligation of any other County operation.
In July, 2010 an Appropriation Fund Transfer was introduced to the Transportation, Public Works & Transit, and Finance committees, and approved for the lease of specific equipment. (Attachment 1). For technical reasons, this lease agreement was not completed in calendar 2010, and therefore is an open item requiring the carryover of the ...
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