Subject: Consent Agenda
Title
A Resolution of the Board of Trustees of the Town of Erie Approving the Additional Lease of Vehicles with Enterprise FM Trust
Body
Department: Public Works
Presenter: Todd Fessenden, Public Works Director
Fiscal Information:
Cost as Recommended: $ 285,072.33
Balance Available: $ 0
Budget Line Item Number: See chart
New Appropriation Required: Yes (2022 budget)
Staff Recommendation:
Recommendation
Resolution approving said lease agreements, authorize the appropriate Town officer to execute said lease agreements, and authorize staff to pay said lease payments.
End
Summary and Background of Subject Matter:
Staff is preparing the 2022 budget for the Board’s review and approval. This budget will include leases of new and replacement Fleet vehicles. While generally these requests are submitted with the budget, this year the Town is looking to receive approval for the leases prior to the budget review and approval. Public Works staff has been working closely with all departments and the Finance Department as part of this process. With the highly volatile auto industry right now, which has been exacerbated by COVID production delays and micro-chip production issues, we are asking to place orders now for 2022 fleet. Staff is looking to be at the front of the production queue as the ordering windows are significantly shorter than normal.
Staff is working with Enterprise to replace the vehicles as listed below. Note that due to the unpredictable market, the replacement specified may change (i.e. Chevrolet to Ford or vice versa) due to availability and manufacturer production limits.
An example of this is that staff originally requested seven of the SUV vehicles be replaced with Toyota Hybrid RAV4s. After the builds were complete (meaning all the options reviewed and selected to prepare the quote), Toyota stated they are not producing any electric or hybrid vehicles for 2022. This also carried through for all manufacturers. With this, these requests were changed to Chevrolet Equinoxes. While we would like to move forward with more electric vehicles, it is advantageous to proceed with these alternative vehicles as they typically are more efficient and safer than older models, and the resale market is high at this time for the aforementioned reasons.
The August 24, 2021 Board of Trustees meeting included the first group of vehicles; these remaining items were waiting on after-market cost quotes. Similar to the Toyotas, originally requested Chevrolet Tahoes are changed to Ford Interceptors as Chevrolet announced they will not be building Tahoes.
The Town is requesting to lease the following vehicles per the request forms submitted:
|
Division |
Current Vehicle # |
Current Yr/Make/Model |
Replaced With |
|
Facilities |
New |
N/A |
2022 Ford Transit-150 Cargo Van |
|
Investigations |
741 |
2014 Jeep Cherokee |
2022 Chevrolet Silverado 1500 |
|
Patrol |
743, 752, 753 |
2015 Ford Explorer SUV 2018 Ford Explorer SUV (2) |
2022 Ford Interceptor (3) |
|
PD Command |
739 |
2014 Ford Explorer SUV |
2022 Ford Interceptor |
|
Streets |
150 |
2016 Ford F550 |
2022 Chevrolet 5500 |
|
Traffic |
742, New (2) |
2014 Ford Explorer SUV, N/A (2) |
2022 Ford Interceptor (2), 2022 Chevrolet Silverado 1500 |
For the vehicles that require a 50% down payment for the aftermarket options, the remaining cost for the aftermarket options are included in the lease payments.
|
Dept/Div |
Vehicle |
Monthly |
Annual* |
Down Payment** |
Acct Number |
|
PW/ Facilities |
2022 Ford Transit-150 Cargo Van |
651.10 |
7,813.20 |
- |
400-70-110-706000 400-70-110-706100 |
|
PD/Investigations |
2022 Chevrolet Silverado 1500^ |
1,161.45 |
13,937.40 |
7,595.73 |
400-60-110-706000 400-60-110-706100 |
|
PD/Patrol |
2022 Ford Interceptor (3) |
3,593.58 |
43,122.96 |
43,496.61 |
400-60-110-706000 400-60-110-706100 |
|
PD/Command |
2022 Ford Interceptor |
1,197.86 |
14,374.32 |
14,498.87 |
400-60-110-706000 400-60-110-706100 |
|
PW/Streets |
2021 Chevrolet Silverado 5500^ |
1,801.14 |
21,613.68 |
36,027.50 |
400-70-110-706000 400-70-110-706100 |
|
PD/Traffic |
2022 Ford Interceptor (2), 2022 Chevrolet Silverado 1500^ |
2,395.72 1,226.66 |
28,748.64 14,719.92 |
28,997.74 10,125.76 |
400-60-110-706000 400-60-110-706100 |
|
|
Annual Lease Total |
|
144,330.12 |
|
|
|
|
Aftermarket Down Payments |
|
|
140,742.21 |
|
|
|
Total First Year Payment |
|
285,072.33 |
|
|
* Annual cost is monthly lease * 12 months * number of units.
** Down payment is after-market down payment needed * number of units
^ The actual unit cost was estimated based on 2021 pricing. Actual costs may very
Fiscal Impact:
With the approval of these leases, Staff will sign the quotes and start the ordering process. Note all vehicles will not be received until 2022 and payments for the leases started upon delivery; therefore, no money will be spent for these in 2021.
These are all five-year lease options. The first year’s cost is $285,072.33 which includes the first year of the lease and half of the after-market costs. The other half of the after-market costs are included in the lease payments.
Board Priority(s) Addressed:
ü Well-Maintained Transportation Infrastructure
ü Safe and Healthy Community
ü Environmentally Sustainable
ü Fiscally Responsible
Attachments:
1. Resolution 21-114
2. Quotes