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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Bill Greene, Chief Finance Officer and Treasurer |
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PRESENTER(S): |
Emily Diaz, Financial Services Administrator |
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TITLE:
title
R2021-09-01 - Resolution Authorizing the Financing of Transit Vehicles through Equipment Lease-Purchase Agreements, and Related Matters
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Adopt Resolution R2021-09-01
BACKGROUND:
UTA’s adopted 2021 budget included $37,374,125 in lease financing to acquire buses, paratransit vehicles, and vans, including a carryover for the 2020 MCI buses. In its meeting of February 24, 2021, the Board of Trustees passed Resolution 2021-02-05 declaring UTA’s intent to reimburse itself for certain capital expenditures up to $50,000,000.
Due to economic upheavals caused by the COVID-19 pandemic, several manufacturers have been unable to maintain production levels. Vehicle deliveries have slowed across the industry causing the 2020 MCI UTA vehicle delivery dates to move from 2020 into 2021 and a delivery delay of the 2021 vehicles.
|
Vehicle/Equipment Replacement |
Number |
Amount |
|
2020 MCI Buses (Carryover) |
27 |
$19,315,125 |
|
Buses |
23 |
$12,800,000 |
|
Paratransit |
30 |
$3,053,000 |
|
Vanpool vans |
58 |
$2,206,000 |
|
|
|
|
|
Totals |
138 |
$37,374,125 |
In order to provide the lease financing for the 2021 vehicles and equipment deliveries, UTA anticipates issuing an RFP for 14-year and 6-year lease financing in the 4th Quarter of 2021.
DISCUSSION:
The resolution grants the authority to the Executive Director, Treasurer, and the Comptroller of the Authority to take all necessary steps to execute the lease-purchase agreements.
ALTERNATIVES:
The Board of Trustees may decide to seek financing for the budgeted leasing amount or reject award for one or all the lease terms.
FISCAL IMPACT:
The lease amounts will result in a 2021 lease expense of approximately $38,000,000. This expenditure is included in UTA’s approved 5-Year Capital Plan.
ATTACHMENTS:
Resolution R2021-09-01