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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Bill Greene, Chief Finance Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
TITLE:
title
Pre-Procurements
- Vehicle Leases
end
AGENDA ITEM TYPE:
Pre-Procurement
RECOMMENDATION:
Informational report for discussion
BACKGROUND:
Utah’s Public Transit District Act requires all contracts valued at $200,000 or greater be approved by the UTA Board of Trustees. This informational report on upcoming procurements allows Trustees to be informed and provide input on upcoming procurement projects. Following the bid solicitation and contract negotiation process, final contracts for these projects will come before the board for approval.
DISCUSSION:
Vehicle Leases. This is a procurement to contract with a firm to provide lease financing for all buses, cutaways buses, vanpool vans and non-revenue vehicles purchased over the next 5 years. UTA has been leasing buses, cutaways buses and vanpool vans since 2015. Previously UTA only entered into current year purchases of vehicles, but found the rates provided were always based on the index rate plus a percentage.
This 5-year Master Lease will allow UTA to mirror its 5-year replacement plan for buses and the 5-year Construction In-Process (CIP) budget by securing the lease rates based on an index plus a percentage for every year in the replacement plan. UTA is not committing to lease a specified quantity of vehicles, only those approved for purchase. Vehicle purchase approvals will still go through the review and approval process during each years’ budgeting cycle. This procurement will be conducted as an RFP, where technical criteria will be evaluated and scored in addition to prices. (Req. 11105 Troy Bingham, Randy Larsen)
ATTACHMENTS:
None