S-1550 - 10/23/2018 - PUBLIC WORKS - Ordinances Supporting DocumentsBOT AGENDA Page 1
BOARD OF TRUSTEES MEETING
SAMUEL E. DEAN BOARD ROOM
BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
October 23, 2018
SUBJECT: Enterprise Fleet Management, Master Equity Lease and Maintenance
Agreement
FROM: Jason Paprocki, Finance Director
Doug Patchin, Public Works Director
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board awards a Master Equity
Lease and Maintenance Agreement with Enterprise Fleet Management, pending final
attorney approval. Additionally, I move that the Village Board approves Ordinance S
-1550.
Background/History:
At the October 9th Village Board meeting Enterprise Fleet Management gave a
presentation on their lease program. The Board requested that Enterprise and staff
calculate the lease option verses the equipment purchases out over the next five (5) years.
Attached you will find the following:
1.Enterprises summary sheet showing the total lease payment and the number of
vehicles to be replaced each year over the next six (6) years.
2.A spread sheet from Finance showing how leasing vehicles will affect the
Equipment Replacement Fund going out fifteen (15) years.
The first set of numbers is leasing vehicles through Enterprise, but continuing to buy the
Public Works Dump Trucks, Construction Equipment and the Fire Department
Ambulances and Fire Trucks. Enterprise does not lease this type of equipment at this
time. Finance has projected the lease costs out fifteen (15) years using general
inflationary increases.
ITEM 9.A.1
BOT AGENDA Page 2
The second set of numbers would be if the Village kept buying vehicles and equipment
using the Enterprise three (3) and five (5) year replacement cycle, a more aggressive
schedule then the Villages current replacement schedule.
The third set of numbers would be if the Village continued buying vehicles and
equipment at our current budgeted replacement schedule. The current replacement
schedule is Police marked vehicles, every four (4) years, unmarked vehicles, five (5)
years, Administration vehicles, seven (7) years and Public Works pickups are replaced
every ten (10) years.
For all three scenarios, the Public Works Dump Trucks, Construction Equipment and the
Fire Departments Ambulances and Fire Trucks remain the same.
This proved out similar to Mercury’s report, we will see some immediate savings up
front, and will level off in the future. If we continue to keep vehicles for seven (7) and
ten (10) years, it may actually be cheaper on the vehicle procurement in future years.
However, any savings here might be eaten up by increased maintenance and a lower
resale value on the older vehicles.
Please note, the vehicles purchased through this Lease Agreement are purchased through
Sourcewell (formally) National Joint Powers Alliance (NJPA) who has already conducted
the bid process.
Recommendation: I move that the Village Board awards a Master Equity Lease and
Maintenance Agreement with Enterprise Fleet Management, subject to final
attorney review. Additionally, I move that the Village Board approves Ordinance
S-1550.
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Leasing with Enterprise
Projected Enterprise Lease Costs 115,440$ 176,316$ 234,372$ 295,020$ 313,212$ 347,484$ 365,260$ 376,596$ 389,464$ 399,512$ 411,150$ 417,250$ 425,200$ 432,050$ 436,050$
VOB Heavy Items Replacement Costs*448,890 448,890 450,029 460,190 469,926 471,170 480,095 541,468 541,612 556,712 557,756 558,096 571,432 578,502 590,736
Projected Annual Costs 564,330$ 625,206$ 684,401$ 755,210$ 783,138$ 818,654$ 845,355$ 918,064$ 931,076$ 956,224$ 968,906$ 975,346$ 996,632$ 1,010,552$ 1,026,786$
Current System (3 and 5 Year Replacements)
VOB Vehicle Replacement Costs**359,359$ 373,580$ 384,046$ 387,660$ 398,979$ 409,676$ 413,784$ 429,292$ 436,045$ 440,312$ 457,200$ 465,549$ 474,692$ 486,920$ 496,436$
VOB Heavy Items Replacement Costs*448,890 448,890 450,029 460,190 469,926 471,170 480,095 541,468 541,612 556,712 557,756 558,096 571,432 578,502 590,736
Projected Annual Costs 808,249$ 822,470$ 834,075$ 847,850$ 868,905$ 880,846$ 893,879$ 970,759$ 977,657$ 997,024$ 1,014,956$ 1,023,645$ 1,046,125$ 1,065,422$ 1,087,171$
Savings From Leasing 243,919 197,264 149,674 92,640 85,767 62,192 48,524 52,696 46,581 40,800 46,050 48,299 49,492 54,870 60,386
Current System (4, 5, 7, 10 Year Replacements)
VOB Vehicle Replacement Costs***246,930$ 272,479$ 283,476$ 285,280$ 294,325$ 297,853$ 303,812$ 311,728$ 319,042$ 329,107$ 336,940$ 342,029$ 348,822$ 356,185$ 367,759$
VOB Heavy Items Replacement Costs*448,890 448,890 450,029 460,190 469,926 471,170 480,095 541,468 541,612 556,712 557,756 558,096 571,432 578,502 590,736
Projected Annual Costs 695,820$ 721,369$ 733,505$ 745,469$ 764,251$ 769,023$ 783,907$ 853,195$ 860,654$ 885,819$ 894,696$ 900,125$ 920,254$ 934,686$ 958,495$
Savings From Leasing 131,490 96,163 49,104 (9,740) (18,887) (49,631) (61,448) (64,868) (70,422) (70,405) (74,210) (75,221) (76,378) (75,865) (68,291)
*Internal service replacement costs for PW dump trucks, equipment, ambulances, and fire trucks. Items not currently eligible to lease.
**Replacement cycles changed to 3 and 5 years to match the Enterprise model
***Replacement cycles match current VOB budgeted practice - 4 years for PD vehicles, 5 years Public Safety Admin, 7 years admin vehicles, 10 years public works pickups.
RG10-17-18
ORDINANCE 2018-S-1550
AN ORDINANCE APPROVING A MASTER LEASE AND
MAINTENANCE AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT
CONCERNING CERTAIN VILLAGE VEHICLES AND EQUIPMENT
WHEREAS, the Village of Oak Brook (“Village”) is an Illinois municipal corporation organized and
operating pursuant to the Illinois Municipal Code (65 ILCS 5/1-1-1, et seq.) (“Code”); and
WHEREAS, the Code (65 ILCS 5/11-76.1-1) authorizes the Village to enter into agreements to
lease personal property for public purposes; and
WHEREAS, Enterprise Fleet Management (“Enterprise”) proposes to lease to the Village certain
vehicles and equipment pursuant to a Master Equity Lease and Maintenance Agreement (“Agreement”);
and
WHEREAS, the Village finds that it is in the Village’s best interests to enter into the Agreement
and that doing so will promote the public health, safety, and welfare by reducing vehicle replacement
costs and providing other benefits;
NOW THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS, as follows:
Section 1: The foregoing recitals are incorporated as though fully set forth in this Section 1.
Section 2: The Village President and Board of Trustees approve the Master Equity Lease
and Maintenance Agreement with Enterprise Fleet Management subject to this Ordinance’s terms, and
the Village Manager is hereby authorized and directed to: i) enter into an agreement consistent with the
terms attached hereto as Exhibit A, and subject to the Village’s Attorney’s review and approval; and ii)
take all steps necessary to implement the terms of this Ordinance.
Section 3: This Ordinance shall be in full force and effect from and after its passage,
approval, and publication as required by law.
APPROVED THIS 23rd day of October, 2018
Gopal G. Lalmalani
Village President
PASSED THIS 23rd day of October, 2018
Ayes: ___________________________________________________________
Nays: ___________________________________________________________
Absent: __________________________________________________________
ATTEST:
_____________________________________
Charlotte K. Pruss
Village Clerk
2
EXHIBIT A
Master Equity Lease and Maintenance Agreement
[Attached]
4843-9670-6169, v. 1