1992 - 04-06-92 Regular Meeting - Laserfiche WebLink

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M • MEMORANDUM TO March 24, 1992 Page Four v)( 11, =33 12 LEE COUNTY BOARD OF COMMISSIONERS With the potential receipt of Section 18 funds beginning in FY 1992-93, unit costs per passenger will decrease for all human service agencies, thereby allowing each agency to provide more service to their clients. CAPITAL NEEDS Vehicle and other replacement needs are outlined in the Transportation Development Plan adopted by the Board of Commissioners last year. Vehicles have been acquired under the auspices of Lee County Industries, Inc., a private, nonprofit organization and the only eligible agency for funding under another NCDOT program. New changes in the law governing this program will allow public agencies to participate for the first time. The consolidation plan calls for Lee County to assume title and control to existing vehicles currently owned by private nonprofit agencies. Three (3) existing vehicles and • one (1) new/proposed vehicle are affected in this transfer. To assume control of these vehicles, Lee County would have to pay the owner agency ten (10%) percent of the current fair market value of the vehicle. In addition, a title transfer tax would have to be paid. It is estimated that approximately $4,273 would be needed to acquire title to these vehicles, while the DMV tax would be about $1,282. The total cost of the transfer would be $5,554. Alternatively, Lee County could lease these vehicles; the County would prefer this option. In addition, one nonprofit agency, Lee County Industries, is in the process of acquiring one additional vehicle and has already submitted a purchase order to NCDOT. Upon delivery, the consolidation plan calls for this vehicle to be titled to the County. Thus, Lee County Industries will require additional reimbursement of $3,592.44. The County proposes buying this vehicle, thereby the County will need to reimbursement this amount to Lee County Industries. Total acquisition costs, if all three (3) used vehicles and the one (1) new vehicle are purchased are $9,047. If the lease option is pursued, on $3,592.44 would be needed. Future capital acquisitions (local share) would be financed through a capital reserve fund to be established by the participating agencies. A user surcharge would be • assessed to finance this fund (See Lee County TDP for projected capital improvement plan). /