R-1605 - 12/13/2016 - BUDGET - Resolutions Supporting DocumentsBOT AGENDA Page 1
AGENDA ITEM
Regular Board of Trustees Meeting
of
December 13, 2016
SUBJECT: Rescue Engine Purchase
FROM: Jason Paprocki, Interim Finance Director
BUDGET SOURCE/BUDGET IMPACT: Equipment Replacement Fund account 342-
90200 “Equipment Replacement” for the purchase of a 2016 Pierce Enforcer Rescue
Engine in the amount of $744,579.
RECOMMENDED MOTION: I move that the Village Board pass Resolution
2016-FD-V-PG-R-1605 “A Resolution Approving The Waiver of Competitive Bidding
and Authorizing The Purchase of a Fire Rescue Engine” to repeal and replace Resolution
2016-FD-V-LS-R-1596 and purchase the 2016 Pierce Enforcer Rescue Engine outright.
Background/History:
During the 2016 Annual Budget process, the Village planned to enter into a lease
agreement for the purchase of a new Fire Rescue Engine. The budget called for part of
the funds previously accumulated for the purchase of the Rescue Engine to be used for
additional public safety pension contributions. The Equipment Replacement Fund
included a $100,000 budget for the initial lease payment in account 342-90200
Equipment Replacement. The 2016 Annual Budget also included a transfer of $662,600
from the Equipment Replacement Fund to the General Fund to make additional public
safety pension contributions.
At the September 13, 2016 Regular Board of Trustees Meeting, Resolution 2016-FD-V-
LS-R-1588 with amendments was passed to purchase the 2016 Pierce Enforcer Rescue
Engine outright for $744,579, pending a budget amendment.
RG
BOT AGENDA Page 2
At the October 11, 2016 Regular Board of Trustees Meeting, Ordinance 2016-BU-
AMEND-S-1476 was presented to amend the 2016 budget for the purchase of the Rescue
Engine. This ordinance failed; however, a resolution was presented to enter into a lease
agreement with JP Morgan Chase for the financing of the Rescue Engine. Resolution
2016-FD-V-LS-R-1596, which authorized a lease agreement with Chase, was passed at
the October 11th meeting.
In the time leading up to the Chase lease closing, the lease interest rate saw an increase
from 1.97% to 2.30%. This increase would have resulted in an additional $1,436 in
interest annually, and $14,365 over the life of the lease agreement. Due to the increase,
the Board expressed a desire to purchase the Rescue Engine outright instead of lease.
At the November 22, 2016 Regular Board of Trustees Meeting, the Board voted not to
use the budgeted $662,600 transfer out of the Equipment Replacement Fund for
additional public safety contributions. Instead, it was discussed that this money would be
used to purchase the Rescue Engine outright for $744,579.
Resolution 2016-FD-V-PG-R-1605 will repeal and replace the previously passed
Resolution 2016-FD-V-LS-R-1596 and authorize the outright purchase of the 2016 Pierce
Enforcer Rescue Engine, pending the approval of a budget amendment. Ordinance 2016-
BU-AMEND-S-1481 will also be presented at the December 13, 2016 Regular Board of
Trustees Meeting to amend the 2016 Budget in order to fund the purchase of the Rescue
Engine.
Recommendation:
I move that the Village Board pass Resolution 2016-FD-V-PG-R-1605 “A Resolution
Approving The Waiver of Competitive Bidding and Authorizing The Purchase of a Fire
Rescue Engine” to repeal and replace Resolution 2016-FD-V-LS-R-1596 and purchase
the 2016 Pierce Enforcer Rescue Engine outright.
RESOLUTION 2016-FD-V-PG-R-1605
A RESOLUTION APPROVING THE WAIVER OF COMPETITIVE BIDDING AND AUTHORIZING
THE PURCHASE OF A FIRE RESCUE ENGINE
WHEREAS, the Village owns two heavy equipment vehicles utilized in the Fire Department, a
1990 Reserve Engine and a 1999 Front-Line Heavy Rescue Squad, which have exceeded their useful life
and are difficult to maintain; and
WHEREAS, the 2016 budget includes $100,000 in the Vehicle Replacement Fund for the lease of
a Rescue Engine to replace both of the above-mentioned vehicles (“Rescue Engine”); and
WHEREAS, the Board passed Resolution 2016-FD-V-LS-R-1596 to authorize a lease agreement
with JP Morgan Chase on October 11, 2016; and
WHEREAS, due to rising interest rates, the Board has determined that purchasing the Rescue
Engine outright is the best option; and
WHEREAS, a budget amendment is necessary to increase account 342-90200, “Equipment
Replacement”, and decrease account 342-80200, “Transfer Out/In”, in the amount of $662,200 for a total
budget of $762,200 related to the Rescue Engine purchase; and
WHEREAS, Section 1-7-10 of the Village Code authorizes the Village to join with other units of
government in cooperative purchasing plans when it is in the best interests of the Village; and
WHEREAS, because the Houston-Galveston Area Council ("HGAC") has already conducted
competitive bidding processes for the purchase of the Rescue Engine, the Village staff has recommended
that the Village waive competitive bidding and approve the issuance of a purchase order to Pierce
Manufacturing, Inc. (“Pierce”) for one 2016 Pierce Enforcer Rescue Engine in the amount of
$744,579.00; and
WHEREAS, the President and Board of Trustees, being fully advised in the premises, have
determined that it is in the best interests of the Village and its residents to: (i) so waive competitive
bidding for the Rescue Engine; and (ii) approve the purchase of the Rescue Engine from Pierce; as
described above;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Waiver of Competitive Bidding Requirements. The advertising and bidding
requirements for the purchase of the Rescue Engine is hereby waived in accordance with Section 1-7-4
of the Village Code.
Section 3: Replacement of Previous Resolution. The previously passed Resolution 2016-
FD-V-LS-R-1596 is repealed and replaced with Resolution 2016-FD-V-PG-R-1605.
Section 4: Authorization of Purchase of the Rescue Engine. The President and Board of
Trustees hereby approve the purchase of the Rescue Engine from Pierce for a purchase price not to
exceed $744,579,
Resolution 2016-FD-V-PG-R-1605
Approving the Purchase of Rescue Engine
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Section 5: Execution of Required Documentation. The Village President and the Village
Clerk shall be, and are hereby, authorized to execute and attest, on behalf of the Village all documents
necessary to complete the purchases pursuant to Sections 3 and 4 of this Resolution.
Section 6: Effective Date. This Resolution shall be in full force and effect from and after its
passage by two-thirds of the Trustees and its approval in the manner provided by law.
APPROVED THIS 13th day of December, 2016
Gopal G. Lalmalani
Village President
PASSED THIS 13h day of December, 2016
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk