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CONCUR To: Honorable Mayor Daniels

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CONCUR To: Honorable Mayor Daniels 7-A Kenneth P. Grybel Director Parks and Daniel S. Paletko Recreation Mayor APPROVED FOR AGENDA OF Of-to-17 CONCUR To: Honorable Mayor DanielS. Pa letko Honorable City Council Members y)J~~ From : Ke nneth P. Grybel, Parks & Recreation Director Date: January 3, 2017 Re: Request to prepare specifications and bid R. A. Yo ung Center Kitchen Remodeling Project Th e R. A. Young Recreation Center is over 20 years old. The Kitchen area is in need of some minor remodeling. Cabinet doors along with hardware need to be rep laced. In ad dition, the kitchen counter tops also need to be replaced. I am requesting that the Parks & Recreation Department be authorized to prepare specifications and to direct the Comptroller to go out for bids per the City's established bid procedures. Funds are available for this project in a facil ity improvement account for the R.A. Young Recreation Ce nter. Your concurrence would be appreciated. Director Pa rks & Recreation KPG RE CYCL ED P.~f'ER City of Dearborn Heights •1801 N. Beech Daly • Dearborn Heights, Ml 48127 • (313) 791 -3600 • Fax (313) 791 -3601 . ~... 8-f\ Daniel S. Paletko Mayor Mayor's Office APFROVED rOH AGENDA OF January 4, 2017 0 (-10-l/ Honorable City Council City of Dearborn Heights Dear Council Members: For the last eighteen months, I have been working with Enterprise Fleet Management on a proposal which should result in significant savings to the City as well as provide us with a reliable, current model fleet. To see if this proposal will work, I am proposing a test using the Ordinance Department and the Director's car in the Recreation Department. Traditionally, cities purchase vehicles and keep them in the fleet until they need $5,000 or more in repairs and then sell them for $200. This results in huge maintenance costs and vehicles which are very fuel inefficient and unreliable. In addition, vehicles are not being matched with their intended use. The Enterprise Fleet Management system purchases vehicles using governmental discount pricing from the manufacturer and leases the vehicle to the government entity. In essence, the City only pays for the value of the vehicle it uses. Since the vehicles get changed out often, the fleet is always current and reliable. This will result in us eliminating the vehicle repair and maintenance portion of the budget. Also, it will result in a significant gas savings since the fleet would use small engine Escapes versus old inefficient Crown Victoria Police Interceptors with V -8 motors. I am proposing we enter into an Equity Lease Agreement with Enterprise Fleet Management for nine (9) vehicles and sell vehicles currently in the City's fleet and use the proceeds to pay for the first few months of the lease. This would result in no budget adjustment for fiscal year 2016-17. If the City Council would like to meet with Mr. Jason Weiss to discuss the proposal, he would be available on Tuesday, January 17, 2017 to meet at a Committee of the Whole Meeting. Sincerely, Daniel S. Paletko Mayor City of Dearborn Heights City of Dearborn Heights • 6045 Fenton • Dearborn Heights, Ml48127 • (313) 791-3490 • Fax (313) 791 ·3491 Dearborn Heights - Fleet Planning Analysis Current Fleet 55 Fleet Growth 0.00% Proposed Fleet 55 10 yr Savings nterprise Current Cycle 18.00 Annual Miles 7,500 Proposed Cycle 5.00 $398,950 F LEET MANrGEMENT Current Maint. $220.00 Insurance $0.00 Proposed Maint. $33.33 Long Term Avg. Fuel Info - MPG 10 Price/Gallon $3.00 Savings $44 606/yr 131% Fleet Mix Fleet Cost Annual Fiscal Fleet IAnnual I I Fleet Year Size Needs Owned Leased Purchase I Lease* IMaintenance IInsurance I Fuel Budget Savings Current 55 3.1 55 0 70,761 0 145,200 0 123,750 339,711 0 '16 55 15 40 15 0 67,474 111,793 0 114,107 293,374 46,336 '17 55 9 31 24 0 106,517 91 ,545 0 108,321 306,383 33,327 '18 55 14 17 38 0 171,626 60,195 0 99,321 331 '142 8,568 '19 55 9 8 47 0 209,250 39,995 0 93,536 342,781 -3,070 '20 55 8 0 55 0 138,562 21,995 0 88,393 248,950 90,760 '21 55 15 0 55 0 200,622 21 ,995 0 88,393 311 ,010 28,700 '22 55 9 0 55 0 188,881 21,995 0 88,393 299,269 40,441 '23 55 14 0 55 0 198,925 21,995 0 88,393 309,313 30,397 '24 55 9 0 55 0 196,593 21 ,995 0 88,393 306,981 32,730 '25 55 8 0 55 0 138,562 21 ,995 0 88,393 248,950 90,760 10 Year Budget Forecast 400,000 ,..----------------------------------- 350,000 300,000 -f---1 250,000 -f---1 G) 2o®oo- ::l m 150,000 -f--=1 100,000 50,000 0 Fiscal Year c:::=J Purchase E!!!l Lease• c::::J Maintenance -Insurance c::::J Fuel c::::J Fleet Budget -current Cost • Lease Rates are conservative estimates Enterprise Fleet Management 7/10/2015 Confidential Licensed Plate Year & Make Model Complete VIN # Department Assigned To Average Mileage/Yearly Mileage Number 08-Ford F-250 Dog Truck 1FTSX20548EB07594 010-896 Ordinance Ordinance 84,464 00-GMC 2500 Cat Truck 1DGDC24R1YF473727 010X874 Ordinance Officer Kramarz #1 08-Ford F-150 Truck 1FTRX12VV17FB712131 028X541 Ordinance Director Mcintyre 3,500 142,239 #2 08-Ford Explorer 1FMZU71E5YUB58137 033X003 Ordinance Clerk Li 6,000 89,024 #3 08-Ford Ranger 1FTYR14E79PA26278 024X027 Ordinance Officer Stein 7,000 63,707 #4 08-Ford Ranger 1FTYR14E59PA26277 024X028 Ordinance Officer Ochmanek 6,000 51,091 #5 07-Crown Vic Crown Vic 2FAHP71VV07X155689 010X919 Ordinance Officer Holder 7,000 123,144 #6 05-Crown Vic Crown Vic 2FAHP61 VV85X152357 024X023 Ordinance Officer Joseph 6,000 121,084 #7 05-Crown Vic Crown Vic 2FAHP71VV85X154383 024X025 Ordinance Officer Lynch 7,000 135,194 05-Ford Taurus Se 1FAPPS3455A284296 028-591 Ordinance Float Vehicle 45,973 #8 07-Ford Ranger 1FTYR10047PA41217 024X021 Ordinance Float Vehicle 17,841 #9 07-Ford Ranger 1FTYR10D07PA41067 ---- -- -- 024X020 Ordinance Float Vehicle 18,628 \- L\- \\ o-rci\V\0\M~ /~' M-~1 (CW't"Y-C) ( -f~~ l 1-f"\A.."'k 7 ~s~.e? :1-~ck, ;.... '\{ .1. """\c.-\ -.'5o -tt.- ' - ~ 9. Open-End (Equity) Lease Rate Quote Quote No: 3391845 Prepared For: City Of Dearborn Heights Date 0110412017 AEIAM JAW UniU Year 2017 Make Ford Model F-150 Series XL 4x2 SuperCab Styleside 6.5 ft. box 145 in. INS Vehicle Order Type Ordered Term 60 State Ml Customer# 479992 All language and acknowledgments contained in the signed quote $24,054.00 1 Capitalized Price of Vehicle apply to all vehicles that are ordered under this signed quote. $0.00 Sales Tax 0.0000% State Ml $ 103.00 Initial License Fee $0.00 Registration Fee Order Information $200.00 Other:Courtesy Delivery Fee Driver Name $0.00 Capitalized Price Reduction Exterior Color (0 P) Lightning Blue $0.00 Tax on Capitalized Price Reduction Interior Color $0.00 Gain Applied From Prior Unit Lie. Plate Type Title Only $0.00 Tax on Gain On Prior GVWR 0 $0.00 Security Deposit $0.00 Extended Service Contract $24,254.00 Total Capitalized Amount (Delivered Price) $303.18 Depreciation Reserve @ 1.2500% $98.82 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor)2 $402.00 Total Monthly Rental Excluding Additional Services Additional Fleet Management Master Policy Enrollment Fees $0.00 Commercial Automobile Liability Enrollment Liability Limit $0.00 $0.00 Physical Damage Management Comp/Coll Deductible 0 I 0 $43.17 Full Maintenance Program3 Contract Miles 50,000 OverMIIeage Charge $ 0.0550 Per Mile lncl: # Brake Sets (1 set = 1 Axle) 3 #Tires 0 Loaner Vehicle Not Included $43.17 Additional Services SubTotal $0.00 Sales Tax 6.0000% State Ml $445.17 Total Monthly Rental Including Additional Services $6,063.20 Reduced Book Value at 60 Months $350.00 Service Charge Due at Lease Termination Quote based on estimated annual mileage of 10,000 (Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval) Notes Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open- End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open- End (Equity) Lease Agreement with resped to such vehicle, ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR. Lessee hereby authorizes this vehicle order. agrees to lease the vehicle on the terms set forth herein and in the Master Equity Lease Agreement and agrees that Lessor shall have the right to coiled damages in the event Lessee fails or refuses to accept delivery of the ordered vehicle. Lessee certifies that it intends that more than 50% of the use of the vehicle is to be in a trade or business of the Lessee. LESSEE City Of Dearborn Heights BY TITLE DATE • INDICATES ITEMS TO BE BILLED ON DELIVERY. 1 Capitalized Price or Vehide May be Ad;usted to Reflect Final Manufacture(s Invoice. Lessee Hereby Assigns to Lessor any Manufacturer Rebates And/Or Manufacturer Incentives Intended for the Lessee, \Mlich Rebates And/Or Incentives Haw Been Used By Lessor to Reduce the Capitalized Price or the Vehicle 2 Monthly Lease Charge Will Be Adjusted to Reflect the Interest Rate on the Delive<y Date (Subject to a Floor).
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