N.M. Admin. Code § 1.5.3.9

Current through Register Vol. 35, No. 17, September 10, 2024

Section 1.5.3.9 - LEASE OF MOTOR POOL VEHICLES

A. A state agency or public agency may lease a motor pool vehicle from the SCFA:

(1) through a "quik ride" or short-term lease by the hour or day not exceeding six (6) consecutive months; or,

(2) through a long-term lease for a period exceeding six (6) consecutive months; or,

(3) through a third-party commercial lease;

B.Rates. Rates for the lease of motor pool vehicles are based on costs for the type of vehicle leased. The SCFA will provide current rates and policies for the lease of motor pool vehicles upon request. There are three (3) types of SCFA long-term leases:

(1) standard lease is a long-term lease of a TSD owned vehicle which includes overhead, maintenance and depreciation costs, less residual; divided by the life-cycle term;

(2) operational lease is a long-term lease of a TSD owned vehicle which includes overhead and maintenance costs; or,

(3) third-party commercial lease is a long-term lease of a TSD leased vehicle which includes overhead, maintenance and third-party financing costs; third party leased vehicles may be subject to excessive mileage costs.

C.Terms.

(1) Standard leases depend on the leasing agency's operational requirements and budget availability. Life-cycles for standard leases are to be five (5) years.

(2) Operational leases shall consist of leases for vehicles that have exceeded the standard lease life-cycles or have been procured by the user agency that has chosen not to pay the depreciation cost.

(3) Third party commercial leases are determined by a state price agreement, typically three (3) years and sixty thousand (60,000) miles. These leases are subject to mileage over-runs and excessive wear and tear costs that are passed on to the customer.

D.Accounts receivable. The SCFA requires the leasing state agency to maintain its accounts receivable current - thirty (30) days or less. The SCFA shall assess a one and one-half percent (1.5%) per month late payment penalty fee on accounts over thirty (30) days past due. The SCFA may take action to cancel any lease agreement(s) and recover the vehicle(s) if the lessee is delinquent over one hundred twenty (120) days in making payment. For short-term leasing, SCFA will charge for one (1) day use for reservations that are not canceled.

E.Encumbrance. The SCFA requires the leasing state agency to encumber the entire fiscal year cost of the lease at the time the lease is signed at the beginning of each fiscal year. The leasing agency may disencumber funds only after a written request to the director or designee is approved. The director or designee will act on requests to disencumber funds within ten (10) working days of the date of the receipt of the leasing agency's request.

F.Operating transfer. To expedite the payment of lease costs to the SCFA, the user agency may choose to pay the annual cost of vehicles leased through an operating transfer within the first forty-five (45)-days of each fiscal year.

G.Termination. Either the division or a state agency may terminate the lease of a state vehicle as per the terms and conditions included in the standing lease agreement.

N.M. Admin. Code § 1.5.3.9

1.5.3.9 NMAC - Rp, 1.5.3.9 NMAC, 1-15-13

Adopted by New Mexico Register, Volume XXVI, Issue 14, July 30, 2015, eff. 7/30/2015