Title
Procurement of Village Fleet - Approval
History
Historically, the Village has purchased vehicles each year based on the amount included in the annual budget. Although the amount budgeted each year has been significant, averaging $949,800 over the last five (5) years, reduced overall Village revenues and higher acquisition costs have caused us to budget an amount less than needed to purchase new vehicles for all that have been due for replacement. The Village's current fleet includes 186 vehicles ranging in size from a small compact sedan to large Class 8 trucks. The average age of the Village's fleet is seven (7) years, with the oldest being nineteen (19) years old. Maintenance on the older vehicles is becoming difficult as it is hard to find parts and equipment necessary to make repairs, especially for the 13 - 16 year old large plow trucks (Class 8). The replacement of large plow trucks will consume a significant portion of the funding allocation over the next three years, costing approximately $180,000 each, potentially causing the replacement of the remainder of the Village's fleet to be deferred. This in turn will spike higher costs of ownership, as well as lower reliability and resale value.
Over the last several months, staff has been analyzing vehicle leasing programs available for the Village's vehicle fleet. Three (3) companies - Enterprise Fleet Management, Leopardo Companies, Inc. and Mike Albert Fleet Solutions - met with staff to discuss their leasing programs and to identify the pros and cons of leasing vs. purchasing, as outlined below.
Pros -
--Implementing a vehicle leasing program will provide for a fleet with a lower average age and provide for more fuel efficient and less costly to maintain vehicles
--Leasing will allow the Village to smooth out its cash flow, especially in years when larger, more expensive trucks are due for replacement. The Village will be able to replace more vehicles within a year with new fuel efficie...
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