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HomeMy WebLinkAboutAgenda - 11-17-2015 - 7b - FY 2015-16 Purchase of Vehicles through the Vehicle Replacement Internal Service Fund 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 17, 2015 Action Agenda Item No. 7-b SUBJECT: FY 2015-16 Purchase of Vehicles through the Vehicle Replacement Internal Service Fund DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. FY 2015-16 Vehicle Gary Donaldson, (919) 245-2453 Replacement Listing Paul Laughton, (919) 245-2152 Attachment 2. Memorandum from Sheriff Attachment 3. Reimbursement Resolution PURPOSE: To approve the final list of County vehicles to be purchased through the Internal Service Fund in FY 2015-16, and approve a Reimbursement Resolution that allows the County to advance funds for the initial purchase and then reimburse itself from a planned December 2015 financing package. BACKGROUND: The Board of County Commissioners (BOCC) initially established the Vehicle Replacement Internal Service Fund during FY 2012-13 for County vehicle purchases. The Internal Service Fund is an accounting device used to accumulate and allocate costs internally among the functions of the County. County department vehicle purchases occur through this Fund instead of through departments' General Fund operating budgets. The Internal Service Fund centralizes all vehicle purchases, which will improve the ability to monitor vehicle acquisition and associated costs. In June 2015, staff presented to the BOCC a list of vehicles recommended for purchase for FY 2015-16 and committed to bringing back a final list for Board consideration and approval this fall. The list coincides with and outlines the vehicles funding amounts approved as part of the FY 2015-16 Budget Ordinance. The total amount of the vehicles to be purchased is $793,209. The only change from the recommended list provided to the BOCC in June 2015 and this final list is a reduction of two (2) Dodge Chargers and the addition of two (2) Harley Davidson Police Package motorcycles (See Attachment 2). These motorcycles will be used for traffic enforcement, but also used for a wide variety of other functions, including but not limited to: • a highly visible presence while patrolling rural neighborhoods, • traffic control for special events, 2 • speed enforcement in problem areas, • collaborative efforts with neighboring enforcement agencies, • special events at area schools, • County functions where traditional patrol vehicles are less effective, and • to promote highway safety and education programs for high school students. FINANCIAL IMPACT: The financial impact of the purchase of twenty-two (22) replacement vehicles is $793,209. Twenty-one (21) vehicles will be purchased with installment financing, while one (1) of the motorcycle units of $22,000 will be purchased with available drug forfeiture funds. The installment financing of $771,209 will be part of a preliminary financing package to be presented to the BOCC in December 2015. The attached Reimbursement Resolution (Attachment 3) allows the County to advance funds for the initial purchase, and then reimburse itself from the financing proceeds. This is necessary in order to receive 2015 State contract pricing, which expires on December 8, 2015. RECOMMENDATION(S): The Manager recommends that the Board approve the final list of County vehicles to be purchased through the Internal Service fund for FY 2015-16 and approve the reimbursement resolution. 3 Attachment 1 Vehicle Replacement - Internal Service Fund Purpose of Fund In FY 2012-13, the Commissioner Approved Budget established a second Internal Service Fund, for County vehicle purchases. Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the functions of the County. Historically, the County has used an internal service fund to account for one activity - its employee dental insurance program. With the creation of this Vehicle Replacement Fund, vehicles purchased occur through this fund instead of the departments' operating budgets. The change centralizes vehicle purchases, which increases the effectiveness of vehicle performance and cost monitoring. Recommendations for vehicle replacements are based on vehicle age, mileage, maintenance costs, fuel efficiency, and departmental mission need. The average age and accumulated mileage of the recommended replacements are 14 years and 158,528 miles, respectively. The vehicle replacement process is a dynamic process that unfolds over the course of a year. During the replacement cycle vehicles originally listed for replacement may ultimately not be selected for replacement as other fleet vehicles become a higher priority for replacement. Recommended replacement vehicle platforms are the Toyota Prius for administrative, highway and street use; the Chevrolet All Wheel Drive Equinox for heavy all-terrain use and for emergency operations support in inclement weather; the Ford Transit Connect for light duty utility service; Ford Transit Van for heavy utility use, the Ford F150 (both two and four wheel drive) for heavy utility use with the 44 option for heavy all-terrain use and to support emergency operations during inclement weather. Specialized vehicle platforms are also included to meet specific departmental service needs. All platforms are evaluated for department mission utility, durability, maintenance standardization, and fuel efficiency. The list below outlines the final list of recommended, debt financed, vehicle purchases for FY 2015-16, for the Board of Commissioners consideration and approval: FY 2015-16 Recommended Vehicles Department Division Item Description Cost Facility (1) Ford Transit Van Maintenance Replaces: $25,033 #415— 1998 Ford E150 Van Asset Management (1) Ford F250 Truck 4x4 Services Facility $24,942 Maintenance Replaces: #419— 1999 Dodge Ram 2500 Facility (1)Transit Connect Services $22,711 Replaces: #510— 2001 GM S-10 Truck 4 Emergency (1) Ambulances—Supplied by Horton Emergency Medical Vehicles (Ambulance platform is built on Ford F550 Cab Emergency Services and chassis with 4x4) Services $235,000 Replaces: #634-2005 Ford F-450 Ambulance. Environmental (1)Chevrolet Equinox All Wheel Drive Health Health $21,243 Replaces: #498—2000 Dodge Intrepid Inspections (2)Chevrolet Equinox All Wheel Drive Planning Replaces: $45,487 #364— 1997 Ford Ranger #450—2000 Ford Ranger Admin. (3) Dodge Durango SSV All Wheel Drive $98,301 Replaces: Sheriff 3 patrol vehicles Patrol (10) Dodge Charger Police Package Rear Wheel Drive (2) Harley Davidson Police Package Motorcycles $320,492 Replaces: 12 patrol vehicles FY 2015-16 Total #of Recommended Vehicles -22 $793,209 Total: Installment Financing Proceeds ($771,209) From Available Drug Forfeiture Funds ($22,000) 5 Attachment 2 OFFICE OF THE ORANGE COUNTY SHERIFF rf Sheriff C.S. Blackwood 106 East Margaret Lane Hillsborough, North Carolina 27278 Hillsborough Chapel Hill (919)644 3050 (919)942 6300 Fax(919)732-6403 Date: November 5, 2015 To: Bonnie Hammersley, Orange County Manager From: Sheriff C.S. Blackwood We intend to use a small portion of the approved vehicle funds to purchase (1) one motorcycle at an anticipated cost of $22,000.00 and (1) one more at the same anticipated cost, with drug forfeiture funds. We plan to use existing equipment funds to up-fit the motor units with the required; emergency lighting, radios, speed measuring devices and graphics at an anticipated cost of $7,500.00 per unit, for a total of $15,000.00. We are working with the Governors Highway Safety Program (GHSP) to procure as much of the emergency equipment as is possible with the points we have accumulated by way of traffic enforcement efforts. While many agencies use their motor units strictly for traffic enforcement, we plan to be a bit more diversified with ours. We will certainly use them for traffic enforcement but they also be used for a wide variety of other functions including but not limited to; a highly visible presence while patrolling rural neighborhoods, traffic control for special events, speed enforcement in problem areas, collaboratively with neighboring agencies enforcement efforts, funeral and dignitary escorts, special events at area schools, county functions where traditional patrol vehicles are less effective and to promote road safety and education programs for high school students. We hope to see the Motor Unit grow to (4) four members over the next (5) five years. 6 Attachment 2 OFFICE OF THE ORANGE COUNTY SHERIFF rf Sheriff C.S. Blackwood 106 East Margaret Lane Hillsborough, North Carolina 27278 Hillsborough Chapel Hill (919)644 3050 (919)942 6300 Fax(919)732-6403 As for the style and type of motor units, we have selected the Harley Davidson Motor Unit. The decision to utilize Harley Davidson was made for many reasons. The Harley Davidson is American made and considered to be a traditional unit for Sheriff's Offices across the nation. Also, many of our neighboring agencies currently employ the use of Harley Davidsons. Durham County Sheriff Mike Andrews, who currently utilizes Harley Davidson units, has agreed to partner with us in enforcement efforts and has even offered loaner units if the need arises. This partnership will enhance our visibility and effectiveness and provide a continuity of service and performance that will certainly jumpstart our efforts as we put this program in service. Lastly, our research has found that the initial cost and maintenance of the Harley Davidson Brand is considerably lower than that of the BMW brand. 7 RES-2015-060 Attachment 3 Reimbursement Resolution for 2015-16 Vehicle Acquisition Program WHEREAS-- Orange County intends to undertake a Project (as described below), use its own funds to pay initial Project costs, and then reimburse itself from financing proceeds for these early expenditures. The Finance Officer has advised the Board that it should adopt this resolution to document the County's plans for reimbursement, in order to comply with certain federal tax rules relating to reimbursement from financing proceeds. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The Project is the acquisition of vehicles for County use, as part of the County's 2015-16 fiscal year capital investment program previously approved by the Board. 2. The County intends to advance funds for initial Project costs, and then reimburse itself from financing proceeds. The expected primary type of financing for the Project (which is subject to change) is installment financing under Section 160A-20, including the possible use of limited obligation bonds. The expected maximum amount of bonds or other obligations to be issued or contracted for the Project is approximately $772,000. The County may combine financing for this Project with financing for other County improvements and undertakings. 3. Funds for the early Project expenditures will come from the County's General Fund. 4. The County intends for the adoption of this resolution to be a declaration of its official intent to reimburse itself from financing proceeds for Project cost expenditures.