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R-1915 - 11/10/2020 - FIRE DEPARTMENT - Resolutions ITEM 6.C.5 BOARD OF TRUSTEES MEETING VILLAGE 01 SAMUEL E. DEAN BOARD ROOM OAK B R , K BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of November 10, 2020 SUBJECT: Pierce Fire Apparatus Turn-In Tax Exempt Lease Purchase Agreement of two (2) Fire Apparatus, one(1) Pierce Enforcer Pumper and one (1) Pierce Enforcer Aerial Platform. FROM: Doug Patchin, Director of Public Works DP BUDGET SOURCE/BUDGET IMPACT: Program#342, Equipment Replacement, six (6) annual payments, 2022 - 2027 of$308,895.80 and one(1) Balloon payment in 2028 of$551,557.07. RECOMMENDED MOTION: I move that the Village Board waive further bidding since the Houston Galveston Area Council(HGAC) already conducted the bid process and awards a Lease Purchase Agreement,to PNC Equipment Finance, for one(1)Pierce Enforcer Pumper 975 and one(1) Pierce Enforcer Pump Under Cab(PUC) Platform 993. Additionally, I move that the Village Board approve Resolution R-1915. Background/History: In 2018, the Village entered into a Master Equity Lease and Maintenance Agreement with Enterprise Fleet Management to lease Administrative vehicles, Police marked and un-marked vehicles, and Public Works medium duty utility vehicles. At that time staff started investigating other equipment/vehicle leasing options. In 2020, the Village started leasing construction equipment through John Deere Financial and started working with Enterprise Fleet Management, writing specifications for heavy- duty dump/snow plow equipment. Staff also worked with Pierce Financial Solutions on a heavy duty Fire Apparatus Lease Agreement. Currently Pierce is running COVID — 19, pricing, no payments are due until January 2022, on Fire Apparatus ordered in 2020 or 2021. The lease agreement is for seven (7) years with a balloon payment due in the final seventh (7t') year. This lease agreement also includes a seven (7) year manufacturer's bumper-to-bumper warranty. BOT AGENDA Page 1 ;eG Staff's goal with the seven (7) year lease purchase is to develop specifications for the replacement of Fire Apparatus during the fifth(5th)year,have revised pricing and seek the Boards authorization to order the new apparatus during the sixth (6 ) year. The manufacturers build lead-time for Fire Equipment is twelve (12) months. Delivery of the replacement equipment would be early within the seventh (7a') year. The resale value of these Fire Apparatus will be higher because the Village is selling seven (7) year old equipment while they are still covered under the manufacturer's warranty, and with seven (7) year old technology vs. selling twenty(20) year old equipment and technology. The leasing of Public Works Dump Trucks, Construction Equipment and Fire Department Apparatus was a recommendation in Mercury's report, we will see some immediate savings up front, and will level off in the future. If we continue to keep Fire Equipment for seven(7)years, it may actually be cheaper on the vehicle procurement in future years. The Lease Agreement for the Pierce Fire Apparatus is financed through PNC Equipment Finance. Recommendation: That the Village Board waive further bidding since the Houston Galveston Area Council(HGAC) already conducted the bid process and awards a Lease Purchase Agreement, to PNC Equipment Finance, for one(1) Pierce Enforcer Pumper 975 and one(1) Pierce Enforcer Pump Under Cab (PUC) Platform 993. Additionally, I move that the Village Board approve Resolution R-1915. BOT AGENDA Page 2 THE VILLAGE OF OAK BROOK COOK AND DUPAGE COUNTIES, ILLINOIS RESOLUTION NUMBER 2020-PW-AG-FD-R-1915 A RESOLUTION APROVING AND AUTHORIZING THE EXECUTION OF A LEASE PURCHASE AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND PNC EQUIPMENT FINANCE GOPAL G. LALMALANI, Village President CHARLOTTE K. PRUSS, Village Clerk JOHN BAAR PHILIP CUEVAS MICHAEL MANZO MOIN SAIYED EDWARD TIESENGA ASIF YUSUF Village Board Published in pamphlet form by authority of the President and the Board of Trustees of the Village of Oak Brook on this the 10th day of November, 2020 RESOLUTION NO.2020-PW-AG-FD-R-1915 A RESOLUTION APROVING AND AUTHORIZING THE EXECUTION OF A LEASE PURCHASE AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND PNC EQUIPMENT FINANCE WHEREAS,the Village of Oak Brook is a municipal corporation with authority provided for and granted pursuant to the Illinois Municipal Code to exercise certain powers and perform certain functions pertaining to its local government and affairs; WHEREAS,the Village of Oak Brook(hereinafter referred to as"Village')upon approval of the corporate authorities may enter into an Agreement with another party pursuant to Illinois Statute; WHEREAS,the Village routinely reviews and inspects its Village equipment and vehicles in order to ensure that the vehicles and equipment is in good working order; WHEREAS,the Village has identifed certain vehicles and equipment that is in need of replacement and has further determined that it is necessary to purchase and finance the following equipment: Pierce Enforcer Pumper 975 and Pierce Enforcer Pump Under Cab(PUC)Platform 993; WHEREAS, the Village has elected to participate in a purchase cooperative via the Houston Galvenston Area Council which has already conducted the bid process regarding the equipment identified herein and further desires to enter into a lease purchase agreement for the purchase of the equipment referenced herein; WHEREAS,PNC Equipment Finance has proposed a lease purchase program which will provide for six equal annual payments in the amount of$308,895.80 beginning in 2022 and one balloon payment in 2028 in the amount of$551,557.07;and WHEREAS,the Village of Oak Brook Corporate Authorities are of the opinion that it is in the best interests of the Village of Oak Brook to enter into the attached lease purchase agreement with PNC Equipment Finance for the purposes referenced herein. NOW,THEREFORE,BE IT RESOLVED by the Village President and Board of Trustees of the Village of Oak Brook,DuPage and Cook Counties,Illinois as follows: Section One—Recitals The Corporate Authorities hereby find that all of the recitals hereinbefore stated as contained in the preamble to this resolution are full,true and correct and do hereby,by reference, incorporate and make them part of this resolution as legislative findings. 2 Section Two—Approval of Lease Purchase Agreement The Village hereby approves the Lease Purchase Agreement substantially in the form attached hereto and made a part hereof collectively as Exhibit A(hereinafter referred to as the "Agreement'). Section Three—Authorization and Direction The Village President is hereby authorized to execute, and the Village Clerk is hereby authorized to attest the Agreement,substantially in the form of such agreement attached hereto as Exhibit A,with such changes therein as shall be approved by the Village Attorney and the officials of the Village executing the same,their execution thereof to constitute exclusive evidence of their approval to any and all changes or revisions therein from and after the execution and delivery of such Agreement. Section Four-Other Actions Authorized The officers,employees and/or agents of the Village shall take all actions necessary or reasonably required to carry out and give effect to the intent of this resolution and otherwise to consummate the transactions contemplated herein, and shall take all actions necessary in conformity therewith including, without limitation, the execution and delivery of all documents required to be delivered in connection with the transaction contemplated herein. Section Five-Authorization of Expenditures The Corporate Authorities hereby authorize and direct the expenditure of all costs related to the execution of the Agreement,additionally,the Village is authorized and directed to allocate and spend all necessary funds to fulfill the requirements of the Agreement and of this Resolution. Section Six—Waiver of Bidding Process To the extent that any requirement of bidding would be applicable to the transactions contemplated hereunder,the same is hereby waived. Section Seven-Acts of Village Officials That all past,present and future acts and doings of the officials of the Village that are in conformity with the purpose and intent of this resolution are hereby, in all respects, ratified, approved,authorized and confirmed. Section Eight—Effective Date This resolution shall be in full force and effect from and after its passage, approval and publication as provided by law. Section Nine-Publication This resolution shall be published in book or pamphlet form as provided by the Illinois Municipal Code. 3 Section Ten—Conflict Clause All resolutions,parts of resolutions or board actions in conflict herewith are hereby repealed to the extent of such conflict. Section Eleven—Saving Clause If any section,paragraph,clause or provision of this resolution is declared by a court of law to be invalid or unconstitutional,the invalidity or unconstitutionality thereof shall not affect the validity of any other provisions of this resolution,which are hereby declared to be separable. Section Twelve—Recording This resolution shall be entered into the minutes and upon the journals of the Board of Trustees of the Village of Oak Brook. PASSED THIS 10th day of November,2020. Ayes: Trustees Baar,Cuevas,Manzo,Saiyed,Tiesenga,Yusuf Nays: None Absent: None APPROVED THIS 10th day of November,2020. Gopal G.Lalmalani Village President ATTEST: Sr, 0 F O4.t o Charlotte K.Pruss Village Clerk h A C CFC�UNTY ���\ 4 �;-� -;:�;:�. ,: >,\, ;Y;,.. Exhibit A Lease Purchase Agreement 5 VZM111 b (DPNC FINANCIAL SOLUTIONS EQUIPMENT FINANCE Turn-In Tax Exempt Lease Purchase SALES ORGANIZATION: MacQueen—John Kenna 8/28/2020 LESSEE: Oak Brook FD Contact information: (1)Pierce Enforcer Pumper 975 Michele Zitko TYPE OF EQUIPMENT: (1)Pierce Enforcer PUC Platform 993 $2,183,116.00(Includes performance bond) Locator:B4-B230-06-07 EQUIPMENT COST: WITH WARRANTY CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St DELIVERY TIME: Standard delivery Columbus,OH 43215 PAYMENT MODE: Annual In Arrears Ph: (800)820-9041,ext.2 FIRST PAYMENT DUE DATE: January 2022 Fax:(866)221-7894 LEASE COMMENCEMENT DATE: October 2020 michele.zitko@pnc.com Term 7 years Number of Payments 6 Annual payments then balloon due one year after final payment Payment Amount 6 @$308,895.80 Balloon 1 @$551,557.07 NOTE:All lease documents must be fully executed within 7 days of the date of this proposal.Failure to receive completed documents may alter the final payment schedule due to changes in rates and/or discounts. PERFORMANCE BOND:To utilize the prepay program,a performance bond is required.Said performance bond shall be paid for directly to Pierce Manufacturing or financed by Pierce Financial Solutions as part of the transaction ESCROW FUNDING OPTION:At lease closing,if all of the equipment has not yet been delivered,Lessor will fund an escrow account from which disbursements will be made to the equipment provider(s)upon receipt of a Requisition Request and Certificate of Acceptance from Lessee.Escrow agent will either be Lessor or third-party provider selected by Lessor and approved by Lessee.All escrow earnings will be for the benefit of Lessee. The escrow agent will assess a$250.00 account set up fee payable at closing. TYPE OF FINANCING:Tax-exempt Lease Purchase Agreement with a balloon payment at the end of lease term.Lessee shall have the option of turning-in the leased apparatus at the end of the contract term.If Lessee decides to purchase another Pierce apparatus of equal or higher value than the balloon amount,Pierce and PNC Equipment Finance will guarantee that the value of the leased vehicle will be equal to the balloon payment amount.If Lessee decides to keep the leased vehicle,it must either pay the balloon payment due or refinance the amount due for another term.Any refinancing will be subject to the credit approval of the Lessee at the discretion of PNC Equipment Finance.Said agreement shall be a net lease arrangement whereby lessee is responsible for all costs of operation,maintenance,insurance,and taxes.Maximum cumulative mileage of 10,000 miles per year. BANK QUALIFICATION:This proposal assumes that the lessee will not be issuing more than$10 million in tax-exempt debt this calendar year.Furthermore,it is assumed that the lessee will designate this issue as a qualified tax-exempt obligation per the tax act of 1986. LEGAL TITLE:Legal title to the equipment during the lease term shall vest in the lessee,with Pierce Financial Solutions perfecting a first security interest AUTHORIZED SIGNORS:The lessee's governing board shall provide Pierce Financial Solutions with its resolution or ordinance authorizing this agreement and shall designate the individual(s)to execute all necessary documents used therein. LEGAL OPINION:The lessee's counsel shall furnish Pierce Financial Solutions with an opinion covering this transaction and the documents used herein.This opinion shall be in a form and substance satisfactory to Pierce Financial Solutions. VOLUNTEER FIRE DEPARTMENTS:If Lessee is a Volunteer Fire Department,a public hearing under the requirements of Section 147(f)of the Internal Revenue Code of 1986 shall be conducted to authorize this tr nsaction.It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing. This proposal will va' or s en 7 It s fro the above date and is subject to final credit approval by Pierce Financial Solutions and approval of the lease documents in Pierce Financial Solutio 's I discr ion To render credit decision,lessee shall provide Pierce Financial Solutions with their most recent three years'audited financial statements,copy of their most rece fiina cial ate?Fent, d current budget. .1 Accepted by: Proposal submitted by •lf/� a. REVIEW OF CONTRACTS Awardin A cy: Type of Con Depaent: Program/Account umber: Aw �ded ICoonntract Price: � +geed Amount: T 1 rb " 1 L 11 i, Under$20,000 $500,001 -$1,000,000 El $20,000•$500,000 �j Over$1,000,000 re- Name eName: Date: Name: Date: IO 26�IZc� Name: — Date: Name: Dater /Za2� F-1 Three (3)Originals signed by other party Date/Initials Original provided to staff member for other party Date/Initials— Original provided to Official Files Date/Initials Village of Oak Brook I Approved by Board of Trustees-Date/initials: B PNC FINANCIAL SOLUTIONS EQUIPMENT FINANCE Turn-In Tax Exempt Lease Purchase SALES ORGANIZATION: MacQueen—John Kenna 8/28/2020 LESSEE: Oak Brook FD Contact information: (1)Pierce Enforcer Pumper 975 Michele Zitko TYPE OF EQUIPMENT: (1)Pierce Enforcer PUC Platform 993 $2,183,116.00(includes performance bond) Locator:B4-B230-06-07 EQUIPMENT COST: WITH WARRANTY CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St DELIVERY TIME: Standard delivery Columbus,OH 43215 PAYMENT MODE: Annual In Arrears Ph: (800)820-9041,ext.2 FIRST PAYMENT DUE DATE: January 2022 Fax:(866)221-7894 LEASE COMMENCEMENT DATE: October 2020 michele.zitko@pnc.com Term 7 years Number of Payments 6 Annual payments then balloon due one year after final payment Payment Amount 6 @ $308,895.80 Balloon 1 @ $551,557.07 days of the date of this pratill -to receive completed documents may alter the final payment schedule due to PERFORMANCE BOND:To utilize the prepay program,a performance bond is required.Said performance bond shall be paid for directly to Pierce Manufacturing or financed by Pierce Financial Solutions as part of the transaction ESCROW FUNDING OPTION:At lease closing,if all of the equipment has not yet been delivered,Lessor will fund an escrow account from which disbursements will be made to the equipment provider(s)upon receipt of a Requisition Request and Certificate of Acceptance from Lessee-Escrow agent will either be Lessor or third-party provider selected by Lessor and approved by Lessee.All escrow earnings will be for the benefit of Lessee. The escrow agent will assess a$250.00 account set up fee payable at closing. TYPE OF FINANCING:Tax-exempt Lease Purchase Agreement with a balloon payment at the end of lease term.Lessee shall have the option of turning-in the leased apparatus at the end of the contract term.If Lessee decides to purchase another Pierce apparatus of equal or higher value than the balloon amount,Pierce and PNC Equipment Finance will guarantee that the value of the leased vehicle will be equal to the balloon payment amount.If Lessee decides to keep the leased vehicle,it must either pay the balloon payment due or refinance the amount due for another term.Any refinancing will be subject to the credit approval of the Lessee at the discretion of PNC Equipment Finance.Said agreement shall be a net lease arrangement whereby lessee is responsible for all costs of operation,maintenance,insurance,and taxes.Maximum cumulative mileage of IO,ODO miles per year. BANK QUALIFICATION:This proposal assumes that the lessee will not be issuing more than$10 million in tax-exempt debt this calendar year.Furthermore,it is assumed that the lessee will designate this issue as a qualified tax-exempt obligation per the tax act of 1986. LEGAL TITLE:Legal title to the equipment during the lease term shall vest in the lessee,with Pierce Financial Solutions perfecting a first security interest AUTHORIZED SIGNORS:The lessee's governing board shall provide Pierce Financial Solutions with its resolution or ordinance authorizing this agreement and shall designate the individual(s)to execute all necessary documents used therein. LEGAL OPINION:The lessee's counsel shall furnish Pierce Financial Solutions with an opinion covering this transaction and the documents used herein.This opinion shall be In a form and substance satisfactory to Pierce Financial Solutions. VOLUNTEER FIRE DEPARTMENTS:If Lessee is a Volunteer Fire Department,a public hearing under the requirements of Section 147(f)of the Internal Revenue Code of 1986 shall be conducted to authorize this tr nsaction.It Is recommended that a notice of the public hearing be published 10 to 14 days M advance of the public hearing. �'�1»v•. .. .ubject to final, :;Pierce Financial Solutions and approval of Me lease documents in Pierce r dension.lessee shall provide Pierce financial Solutions with their most recent three years'audited financial statements,copy of yen[b�dr�• Accepted by: Proposal submitted by JA"