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Meeting Date:
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2/8/2023 - 7:00 PM
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Category:
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Consent Agenda Items
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Type:
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Action
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Subject:
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Approval of Activity Vehicle Lease
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Vision 2026:
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Operational Excellence Strategies 2 Maintain strong fiscal health of the organization.
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Background
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The Board of Education approved a three-year lease contract with Midwest Transit Equipment, Inc. in March 2018 for eight (8) activity vehicles that are used at both high schools for athletic, co-curricular, and transition travel. The lease cost for the eight vehicles has an annual cost of $7,987.00 per vehicle. This lease expired on June 30, 2021, and the Board approved a two-year extension of the existing lease in March 2021, which expires on June 30, 2023.
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File Attachment:
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Summary:
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Midwest Transit presented proposals with different options for the District to consider. One option is to extend the lease on the existing contract by either one or two years. Another option is to lease either eight (8) new vehicles for a three or five-year term. District administration weighed the costs associated with keeping the current vehicles through a lease extension and the cost of obtaining new vehicles. As the current vehicles are five years old and out of warranty, the estimated costs to maintain them for additional one or two years will substantially increase through normal use and wear and tear.
Attached is the proposal to lease eight (8) new activity vehicles for a five-year term. The annual lease cost is $19,886 per vehicle.
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Funding:
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Annual Cost: $159,088
Funding Source: FY24 Transportation Fund
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Board Policy
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4:60 Purchases and Contracts
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Recommendation:
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It is recommended that the Board of Education approve the lease contract with Midwest Transit Equipment, Inc. as presented.
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Approvals:
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Recommended By:
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Signed By:
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Lisa Maher - Dir of Business Services
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Signed By:
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Brian O'Keeffe - Asst Superintendent Business Services
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Signed By:
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Jeff Schuler - Superintendent
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Vote Results:
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| Original Motion | | Member Susan Booton Moved, Member Brad Paulsen seconded to approve the Original motion 'It is recommended that the Board of Education approve the lease contract with Midwest Transit Equipment, Inc. as presented.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 7 Nay: 0. | | The motion Carried 7 - 0 | | | | | Brad Paulsen | Yes | | Chris Crabtree | Yes | | Rob Hanlon | Yes | | Susan Booton | Yes | | Dave Long | Yes | | Angela Blatner | Yes | | Julie Kulovits | Yes | |
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