It’s better financially for Kaua’i County to lease more than 80 government vehicles, according to officials. Finance director Wally Rezentes Jr., at the behest of Councilman Gary Hooser, gave the County Council an explanation Monday of the county’s capital lease
It’s better financially for Kaua’i County to lease more than 80 government vehicles, according to officials.
Finance director Wally Rezentes Jr., at the behest of Councilman Gary Hooser, gave the County Council an explanation Monday of the county’s capital lease program for purchasing police and fire vehicles.
Rezentes told the council the program was begun at the administration’s request “three or four years ago during the budget process when the leasing marketplace was very good,” interest rates “were decent and we were able to step up equipment purchases.”
Hooser asked, “Why does the county choose to lease instead of buy?”
“It’s an affordability issue,” Rezentes said. “At the end of the lease-purchase program we pay a dollar and the vehicle is ours. Under this type of lease program, the vehicle is either returned to the dealer at the end of the lease or the terms can be renegotiated.”
Rezentes noted that the intent of the administration is not to “turn the autos in” at the expiration of the leases.
“We feel the useful life of the vehicles will far exceed” the three-year lease, he stated.
The county has 82 vehicles on the lease-purchase program, including 23 police vehicles. These numbers exclude vehicles to be purchased in the coming fiscal year.
There are no mileage charges on the leased police and fire vehicles. In fact, Rezentes said, the only county vehicle with a mileage restriction is the new sedan recently leased for Mayor Maryanne Kusaka.
“There are no mileage charges for the first 30,000 miles per year, but if the mayor’s vehicle exceeds 30,000 miles (in a year), then there is a charge of 15 cents a mile. That’s the only car” in the leased fleet with a mileage restriction “to my knowledge,” Rezentes said.
Some council members earlier protested the leasing of a new-model car for the mayor.
Councilman Randal Valenciano pointed out that the procurement process for the police and fire vehicles was different than the way the mayor’s new vehicle was leased. Her car was leased individually, while the police cars are leased through the federal General Service Administration.
“We don’t bid. The GSA goes through a procurement bid process nationally. We’re saving possibly $3,000 per unit,” Rezentes said.
Staff writer Dennis Wilken can be reached at 245-3681 (ext. 252) and mailto:dwilken@pulitzer.net
