1 00:00:04,78 --> 00:00:07,63 Welcome to the special called meeting of the damn 2 00:00:07,64 --> 00:00:12,20 a city commission for this Wednesday March the fifteenth two thousand and seventeen 3 00:00:12,55 --> 00:00:15,93 apologize for our lateness we had 4 00:00:15,94 --> 00:00:22,19 a previous meeting but we appreciate your patience Item one is the vehicle leasing 5 00:00:22,20 --> 00:00:26,74 program discussion in approval but before we go there every question that Scott Yes 6 00:00:26,75 --> 00:00:31,01 or whenever this is not directed to any particular thing with decision just 7 00:00:31,02 --> 00:00:36,58 a general question whenever we look to hire someone. 8 00:00:38,53 --> 00:00:38,70 For 9 00:00:38,71 --> 00:00:46,09 a particular position or we would fire to post that our 10 00:00:46,35 --> 00:00:52,17 personnel policy that we adopted say that the city may recruit internally and may 11 00:00:52,59 --> 00:00:57,38 do that first and if there is not sufficient applications that we are required to 12 00:00:57,39 --> 00:01:01,97 post on it that the said nothing to do with them for the operation on the student 13 00:01:01,98 --> 00:01:06,88 does get posted internally but we post internally usually first if we have 14 00:01:06,89 --> 00:01:12,10 a promotional opportunity that's the customary practice but then we do always 15 00:01:12,42 --> 00:01:18,45 publicly solicit job applications but if the post internally is that directed to 16 00:01:18,46 --> 00:01:24,07 existing employees yes it will if it's not in existing employees 17 00:01:25,98 --> 00:01:30,64 then you need to post external Yes that's just 18 00:01:30,65 --> 00:01:37,18 a little side conversation we had. Again thank you for your patience are you sorry 19 00:01:37,18 --> 00:01:43,16 . And say we don't operate in the public if. They did. 20 00:01:44,55 --> 00:01:45,09 Let's got 21 00:01:45,10 --> 00:01:52,50 a deal between all the legal programs back in place Mr Mayor commission staff 22 00:01:52,51 --> 00:01:57,66 is very excited today to bring to you two proposals that we collectively we being 23 00:01:57,67 --> 00:02:04,10 the staff in the city commission have had ongoing for several months. And they 24 00:02:04,24 --> 00:02:10,90 each provide the opportunity for saving significant funds. And taxpayer 25 00:02:10,91 --> 00:02:16,90 dollars to play program we looked at earlier and I think you have before us summary 26 00:02:17,43 --> 00:02:24,11 of the benefits of that program which show if we do about that program we can 27 00:02:24,12 --> 00:02:30,74 save over the term ten years six hundred fifty thousand four hundred six projected 28 00:02:31,47 --> 00:02:37,54 it has the benefits of lowering the average age of our fleet allowing us to to 29 00:02:37,55 --> 00:02:43,37 lease and put much New York Whitman in some of our departments it brings about 30 00:02:43,38 --> 00:02:48,83 greater savings in operating cost in terms of both fuel and maintenance and the 31 00:02:48,84 --> 00:02:55,81 reliability. Of operations is also enhance the morale of employees are hand in 32 00:02:55,82 --> 00:02:58,31 hand and it allows us to have 33 00:02:58,32 --> 00:03:04,36 a more predictable budget year to year in terms of just living on with providing 34 00:03:04,58 --> 00:03:09,18 services to our citizens so we're excited about this we think it's 35 00:03:09,19 --> 00:03:14,25 a good program I would remind the commission that this is not 36 00:03:14,26 --> 00:03:18,45 a new idea. The. In 37 00:03:18,46 --> 00:03:22,33 a price we've managed the program has been adopted by the little metro sewer 38 00:03:22,34 --> 00:03:28,05 district Boyd County City Somerset city of Murray city of Kurt Korb and many other 39 00:03:28,06 --> 00:03:33,77 architect governmental. Organizations as spoil which I'll go through that leaves 40 00:03:33,78 --> 00:03:37,42 the list of those but there. It's 41 00:03:37,43 --> 00:03:43,40 a good program and tears received. A good response in quite 42 00:03:43,41 --> 00:03:45,86 a number of cities throughout Kentucky. 43 00:03:55,60 --> 00:04:01,42 Wrong. Is there any particular downside that you see 44 00:04:04,72 --> 00:04:11,49 well if it does not cover some larger vehicles like our fire department for example 45 00:04:11,50 --> 00:04:12,84 and we're going to be faced with 46 00:04:13,56 --> 00:04:19,31 a large capital purchases of all our the good life truck for example suppose others 47 00:04:19,35 --> 00:04:23,93 but for it it covers essentially I think everything else has it OK we'll cover 48 00:04:23,94 --> 00:04:28,17 Sicily all the passenger vehicles that are considered in the city that will be able 49 00:04:28,18 --> 00:04:34,43 to day and we should be able to get out of what we spend now will expand last and 50 00:04:34,47 --> 00:04:37,13 everybody will be able to have that barely knew they should have 51 00:04:37,14 --> 00:04:39,85 a fab your turnover it's just there is just 52 00:04:39,86 --> 00:04:43,65 a year by year contract period to the pin your contract it will be your pay your 53 00:04:43,66 --> 00:04:47,26 truck contract that will count that we can opt out of all that that point Pam that 54 00:04:47,27 --> 00:04:48,61 we went to look at and that's 55 00:04:48,62 --> 00:04:55,54 a long term solution so this is Public Works week it goes does 56 00:04:55,55 --> 00:05:01,96 it include police the only place public parks and regular bar utility vehicles ever 57 00:05:02,08 --> 00:05:08,43 are are kind of like water codes. In any kind of commercial vehicle 58 00:05:09,22 --> 00:05:16,14 any kind of passenger met Hunter now Yes So Mike are big. Public Works trucks no 59 00:05:16,43 --> 00:05:22,72 no not the trucks and those trucks but that passenger vehicles so I does have 60 00:05:22,73 --> 00:05:29,52 questions. Explained to me. What happens if 61 00:05:29,53 --> 00:05:36,30 someone's truck breaks down or is it you know Richter 62 00:05:36,34 --> 00:05:42,87 destroyed or whatever how does it work now and how will this work well. Right now 63 00:05:43,27 --> 00:05:47,34 we take care of everything it runs all the one hundred percent in-house Now if that 64 00:05:47,35 --> 00:05:50,68 takes care we will still carry insurance on these vehicles as if we own them just 65 00:05:50,69 --> 00:05:56,12 like as has it's like at least one and I will still carry insurance will have to do 66 00:05:56,13 --> 00:05:59,07 an insurance claim one threat can ever think that we'll have in our price to 67 00:05:59,08 --> 00:06:02,25 partner with us to get the new vehicles and everything they're going to handle when 68 00:06:02,26 --> 00:06:06,75 this contract the magnets contract so if it's regular maintenance items then if 69 00:06:06,76 --> 00:06:10,75 that will go all through in arise we'll be able to monitor that might the people 70 00:06:10,80 --> 00:06:14,70 who have look at it online will be up to see every time the gas will be able to see 71 00:06:14,71 --> 00:06:20,22 everything whereas right now are we doing our own maintenance we do our own might 72 00:06:20,23 --> 00:06:24,22 not yes and are we doing that in-house or we have 73 00:06:24,36 --> 00:06:29,15 a many to do all in-house we have the dealership part the ride we go to different 74 00:06:29,71 --> 00:06:33,02 several different classes of places OK what is 75 00:06:33,87 --> 00:06:40,61 a vehicle is is turned in at the end of the term or goes in for 76 00:06:40,62 --> 00:06:47,54 maintenance and they say this is excessive use and abuse is that well if 77 00:06:47,55 --> 00:06:49,34 it's excessive use an obese and it has 78 00:06:49,40 --> 00:06:52,91 a quad them then that will fall on us to pay for it if it's something that we've 79 00:06:52,92 --> 00:06:57,70 done to the vehicle if it's at the end of the lace term it's just like any other 80 00:06:57,71 --> 00:07:02,21 race you get a payback you know just like if you tried it in your vehicle you get 81 00:07:02,22 --> 00:07:05,79 a payback so if we use data we did it he met we're going to get a less of 82 00:07:05,80 --> 00:07:10,12 a payback at that when we come down and then working it and that's the same as it 83 00:07:10,13 --> 00:07:11,88 is now that will be decided in their vehicles in 84 00:07:11,89 --> 00:07:14,21 a lot sooner we don't get you know 85 00:07:14,22 --> 00:07:16,28 a twenty year vehicle you know you very much back on 86 00:07:16,40 --> 00:07:18,95 a five year vehicle even if it has a few things in it you're going to get 87 00:07:18,96 --> 00:07:23,39 a lot more money back right and I know that you know things happen but you know 88 00:07:23,40 --> 00:07:30,22 just so that they understand that these are. On the plus the hit 89 00:07:30,23 --> 00:07:34,81 calls yes that that they they understand that and I'm that on the other side of 90 00:07:34,82 --> 00:07:40,45 that this is where I'm going is that the employees may be driving fairly new 91 00:07:40,46 --> 00:07:46,95 vehicles but they also need to take that into considering as are discussed that and 92 00:07:46,96 --> 00:07:51,27 I know that our foreign policy will based much more straight on the future yes 93 00:07:51,59 --> 00:07:56,44 that's what I wanted to know OK but that question Terry you you do that that are 94 00:07:56,45 --> 00:08:00,80 important point there's this provides for centralized administration ever tire 95 00:08:00,81 --> 00:08:03,88 fleet we have sort of fragmented approach now board it may be 96 00:08:03,89 --> 00:08:09,38 a better monitoring of that one department versus others. Having 97 00:08:09,39 --> 00:08:12,94 a centralized approach not only what we have the information but also in 98 00:08:12,95 --> 00:08:17,74 a possible to have better information and so we can be alerted to transit work or 99 00:08:17,97 --> 00:08:23,03 problems ahead of the end of the lease period then maybe you can catch it before 100 00:08:23,04 --> 00:08:29,97 it's too bad and then. That is their loan or for their 101 00:08:29,98 --> 00:08:34,37 loan or program like it would be it goes in maintenance or is there you're seeing 102 00:08:34,38 --> 00:08:37,73 repaired of that correct generally is OK but yet every is allowed in 103 00:08:37,74 --> 00:08:42,49 a program that that's in the magnets program we have with us representatives of 104 00:08:42,50 --> 00:08:45,62 enterprise Mr Joe when I need you have is that from him not in his head. 105 00:08:49,18 --> 00:08:54,54 That that is what I want the annual lease cause. I guess I'm looking that 106 00:08:56,04 --> 00:08:59,49 to that I'm seventeen this year is two hundred twenty thousand six hundred. 107 00:09:00,64 --> 00:09:06,41 Thousand dolls and in it's down twenty one to go to twenty three thousand 108 00:09:07,91 --> 00:09:13,71 who is the good in the. Without you it's all according to me because we have to try 109 00:09:13,72 --> 00:09:18,47 to be and what's what they are is that there was into that calculation this is I 110 00:09:18,51 --> 00:09:23,86 have estimated. We can't get better in the negotiations and he go of course prove 111 00:09:23,87 --> 00:09:28,26 us to do that and that this is an estimate based on we gave them all our plate 112 00:09:28,27 --> 00:09:32,39 vehicles that we had we gave them our gas logs that we had we gave them our 113 00:09:32,43 --> 00:09:36,50 maintenance records that we have on the vehicles and so they put this together and 114 00:09:36,51 --> 00:09:38,91 it's a gorilla good summary but you know this will be tweaked 115 00:09:38,92 --> 00:09:43,17 a little bit and everything but it all has to do with how many we have to trade in 116 00:09:43,18 --> 00:09:47,33 at that point can the bag have the trade ins at that point in time and what will be 117 00:09:47,34 --> 00:09:53,23 doing and you know more payoffs on and I guess the other question I have is that 118 00:09:53,30 --> 00:09:53,49 I'm 119 00:09:53,58 --> 00:09:59,50 a missed the early discussions this is the unit price fleet management proposal that 120 00:09:59,51 --> 00:10:04,50 we look at other we did in our pay and they are the ones that responded to our IF 121 00:10:04,51 --> 00:10:06,27 pay they said they're the ones that got to give us 122 00:10:06,28 --> 00:10:10,72 a proposal they're the only ones that responded we we had some other people that 123 00:10:10,73 --> 00:10:16,59 talked to us but they deferred to. When they found out in a prize was involved 124 00:10:16,63 --> 00:10:21,64 a count have deferred they never did an actual the act they did call I think I'll 125 00:10:21,65 --> 00:10:26,95 talk to several and I talked to several that called that we talked as many as five 126 00:10:27,05 --> 00:10:32,81 four. Companies that we felt like were legitimate that had the capacity to. 127 00:10:34,01 --> 00:10:40,44 Summit replied compete. The and like like she's saying this is this the next step 128 00:10:40,45 --> 00:10:42,22 beyond this I mean it involves 129 00:10:42,23 --> 00:10:48,05 a lot of work and so this is the financial analysis from which we sat with or not 130 00:10:48,06 --> 00:10:52,98 we're going to take that next step and work out those details right and because we 131 00:10:52,99 --> 00:10:55,20 have to evaluate and create 132 00:10:55,21 --> 00:10:59,51 a list of actual vehicles that need to be bought what those vehicles are how 133 00:10:59,52 --> 00:11:06,29 they're outfitted what those look like to dollar into the actual final cost so far 134 00:11:06,30 --> 00:11:12,06 as police cars in the loan are programmed to you just have the general you have 135 00:11:12,07 --> 00:11:17,82 something that has just generally lights and things will still have our will this 136 00:11:17,83 --> 00:11:21,64 will not still include our pool of vehicles in the place department so we'll never 137 00:11:21,65 --> 00:11:24,95 be without one that we have cool vehicles concluded in the place part of this 138 00:11:24,96 --> 00:11:29,49 unclear we have our like our own yeah we'll still have that we won't get rid of 139 00:11:29,50 --> 00:11:35,28 that was this deal keeps our plate is its biggest our fleet is Nial and you are 140 00:11:35,29 --> 00:11:40,07 talking about fuel. We have lots of egos that ate the fuel because they're older 141 00:11:40,08 --> 00:11:45,19 vehicles these are the newer vehicles so they won't be more fuel conscience and 142 00:11:45,20 --> 00:11:49,60 we'll be able to monitor the fuel online that are not those are still going to be 143 00:11:50,14 --> 00:11:55,55 are the be our costs or it started last that we'll be able to cite money because 144 00:11:55,56 --> 00:12:00,46 we're have more fuel efficient vehicles and 145 00:12:02,14 --> 00:12:05,92 fitting these cars when appropriate police and far equipment all are coming from 146 00:12:05,93 --> 00:12:09,71 the we'll do that ourselves or we'll talk to them what they we need today where 147 00:12:09,72 --> 00:12:10,31 we'll still get 148 00:12:10,32 --> 00:12:13,22 a Marshall that we talk to the place and they want to get there as their sales 149 00:12:13,23 --> 00:12:18,92 because of how we have to do the end date hase you know just be easier but they're 150 00:12:18,93 --> 00:12:23,35 fully aware that we'll be drilling holes in the top of the cars and lights in it. I 151 00:12:23,36 --> 00:12:24,94 mean you know it's 152 00:12:24,95 --> 00:12:28,47 a good idea that's kind of ironic that's kind of where I was headed to we've 153 00:12:28,48 --> 00:12:31,77 already talked about that because I want to say what I what I always when I've been 154 00:12:31,78 --> 00:12:36,22 told you that not do that but OK you don't get to do that as I get to the right yes 155 00:12:36,22 --> 00:12:42,57 . To do it your. Questions in all mine yeah. 156 00:12:43,84 --> 00:12:49,39 OK. Most of vehicle leasing programs have a mileage limit as 157 00:12:49,43 --> 00:12:51,60 a result something that's going to be 158 00:12:51,61 --> 00:12:58,14 a pressure here around them if you can speak on it but it will just be a B. 159 00:12:58,15 --> 00:13:00,78 On the turn in bad you have it but it's no it's not like 160 00:13:01,23 --> 00:13:04,89 a regular lease program this is that Plate lease program I know what that some of 161 00:13:04,90 --> 00:13:06,98 our vehicles especially the place because of the Pinnacle 162 00:13:07,32 --> 00:13:14,20 a lot of miles on the car and then going back to the question about insurance if 163 00:13:14,51 --> 00:13:18,93 if these are vehicles that are owned by enterprise what's insurance they were 164 00:13:18,94 --> 00:13:22,01 having their jointly interpreting the way that they have to go on the books in the 165 00:13:22,02 --> 00:13:27,41 least and then may change the law on this recently for government also. I mean it's 166 00:13:27,42 --> 00:13:31,53 policies they have to go in our boxes are because we don't we couldn't we couldn't 167 00:13:31,54 --> 00:13:32,50 asset on our books and 168 00:13:32,51 --> 00:13:38,05 a lot billeted on our books as long because at the full value Levitt would just 169 00:13:38,06 --> 00:13:45,06 keep turning it over it just changes every year so. As far as the purposes it goes 170 00:13:45,07 --> 00:13:45,94 it goes on our books as 171 00:13:45,95 --> 00:13:50,58 a full asset that there are assets we are in there and then we threw them on there 172 00:13:50,59 --> 00:13:54,52 as a loan which is a lease program we paid lease payments and it's 173 00:13:54,53 --> 00:13:58,25 a like the least own kind of deal that would ever come we get to the five year 174 00:13:58,26 --> 00:14:04,61 turnover we turn them over to zero rate reduction 175 00:14:04,89 --> 00:14:06,11 terms when you're in this kind of 176 00:14:06,12 --> 00:14:12,92 a program probably not. It but my 177 00:14:12,93 --> 00:14:17,63 grandparents what we already have the founder of that exit and her insurance is in 178 00:14:17,64 --> 00:14:20,60 fact you know to discuss their new vehicles will go up 179 00:14:20,61 --> 00:14:27,19 a little bit. Sad. Well I've come to the conclusion that Michele says yes it's 180 00:14:27,20 --> 00:14:33,06 usually pretty good deal. But if. 181 00:14:34,81 --> 00:14:40,49 She says no to everything. Did you hear a motion well before you make 182 00:14:40,50 --> 00:14:47,39 a motion not I just full select I'd like to have more. Questions Answered I 183 00:14:47,40 --> 00:14:51,74 think and we do emotion that a good emotion out of B. 184 00:14:51,75 --> 00:14:56,97 To consider letting snappy to you best to take this and come back with some more 185 00:14:57,87 --> 00:15:02,00 common to win win as far as we can until you give us the I that the opportunity to 186 00:15:02,01 --> 00:15:08,09 go ahead with the contract. We we've given them all our vehicles this has all our 187 00:15:08,10 --> 00:15:11,73 vehicles in there what Earl is talking about is we have to evaluate each vehicle 188 00:15:11,74 --> 00:15:15,53 for us do we need to sign vehicle can we need a smaller vehicle do we need 189 00:15:15,54 --> 00:15:19,24 a bigger vehicle or go on from that as far as what they're done like that 190 00:15:19,25 --> 00:15:21,50 everything they can do at this point how with that as 191 00:15:21,88 --> 00:15:28,45 a Green Party but you know this poor contract. You'll come back with us. 192 00:15:29,63 --> 00:15:31,72 On proposal when we come back with 193 00:15:31,73 --> 00:15:36,29 a contract with the law for more details about what's blue going assumes into and 194 00:15:36,36 --> 00:15:41,99 we will come back with an actual contract for enterprise with. It be more specific 195 00:15:42,03 --> 00:15:48,78 more accurate yes they're more specific to the types of vehicles that 196 00:15:49,11 --> 00:15:50,83 the well intill you are signed 197 00:15:50,84 --> 00:15:54,33 a contract we can't get into that that you're talking about hours and hours and 198 00:15:54,34 --> 00:16:00,75 hours of work. I want to I want to make sure that 199 00:16:01,22 --> 00:16:06,19 while we ask pertinent question generally sure we understand that this operational 200 00:16:06,20 --> 00:16:11,89 type of thing is staff's responsibility our role is to. 201 00:16:13,17 --> 00:16:19,66 Accept or reject you know their recommendations based on what we feel is most 202 00:16:19,67 --> 00:16:26,40 prudent for the city. Let me add if I could mayor that it's important that we have 203 00:16:26,41 --> 00:16:32,36 a. Signal from you or a direction from you at this point because this has not only 204 00:16:32,37 --> 00:16:37,20 a lot of work in front of it but it's also key to our budget preparation process so 205 00:16:37,21 --> 00:16:41,46 we really need to know at this time whether you want to go down this road or not no 206 00:16:41,47 --> 00:16:48,23 pun intended but. It's sort of. At the point that we need to 207 00:16:48,65 --> 00:16:50,57 have an affirmation that you think it's 208 00:16:50,58 --> 00:16:54,13 a good idea to at least have the potential of saving six hundred fifty eight 209 00:16:54,14 --> 00:16:58,76 thousand at the end of ten years or if you want to continue our present mode of 210 00:16:58,87 --> 00:17:05,66 buying. The it which every year if our finances support that and 211 00:17:05,70 --> 00:17:08,21 continue to do as we've done in the past or you would like 212 00:17:08,22 --> 00:17:14,62 a motion. Affirming of further investigation of staff to this 213 00:17:14,63 --> 00:17:20,83 concept yes it's our recommendation that you do approve your support of entering 214 00:17:20,84 --> 00:17:27,09 into the leasing program understanding that we have yet to sign the contract that 215 00:17:27,10 --> 00:17:31,28 will provide full details and we would need to do additional staff work in order to 216 00:17:31,29 --> 00:17:35,89 get that contract but we feel that the six hundred fifty eight thousand dollars is 217 00:17:35,90 --> 00:17:39,35 a conservative number are so that we go that our savings will be greater than the 218 00:17:40,23 --> 00:17:45,56 well that OK with that let me play the I'm the private citizen so I'll put out an 219 00:17:45,57 --> 00:17:51,28 undue senior savings of six hundred sixty thousand dollars and then right next to 220 00:17:51,29 --> 00:17:57,94 that I put out I've got an average sustainable. Seventeen thousand dollars smile 221 00:17:57,95 --> 00:18:04,94 explained to me that difference and how do I get that than six. Thousand Oh yeah 222 00:18:05,70 --> 00:18:11,41 a gun in every sustainable sleeve to seventeen thousand Oh no. It's. 223 00:18:12,68 --> 00:18:14,45 Not I'm not opposed to 224 00:18:14,46 --> 00:18:19,12 a little Joey take it see if the marks on this night you can test the very back of 225 00:18:19,13 --> 00:18:24,31 it on the bottom. It's all in bits out of its own home. 226 00:18:27,80 --> 00:18:29,28 I think turned to. 227 00:18:37,62 --> 00:18:43,52 Me. OK because it's. So 228 00:18:44,23 --> 00:18:45,49 simplicity I'll do 229 00:18:45,50 --> 00:18:52,19 a one vehicle of discussion and then we can look at the plan. We're using the 230 00:18:52,20 --> 00:18:54,56 industry expertise of our sister company Enterprise Rent 231 00:18:54,57 --> 00:18:57,46 a car who buys really really cheap because we buy 232 00:18:57,47 --> 00:19:03,14 a large volume we then sell twelve to eighteen months later at the same price that 233 00:19:03,15 --> 00:19:07,38 we purchase the vehicles for and that's kind of how we operate on our fleet now 234 00:19:07,39 --> 00:19:14,11 what's happened is government buys almost as cheap as Enterprise Rent-A 235 00:19:14,12 --> 00:19:16,78 Car and example that I gave to the city was 236 00:19:16,79 --> 00:19:21,94 a three hundred ton truck retail if you go to local or dealer and you look at 237 00:19:21,95 --> 00:19:26,93 a three quarter time for now after fifty you're looking at thirty five forty 238 00:19:26,94 --> 00:19:31,15 thousand dollars now day one because your government entity you're buying 239 00:19:31,16 --> 00:19:35,51 a vehicle for roughly twenty five thousand dollars so what we're doing is we're 240 00:19:35,52 --> 00:19:38,18 just setting this up as a Finance down to 241 00:19:38,19 --> 00:19:41,69 a residual if we know we're going to rotate these vehicles on 242 00:19:41,70 --> 00:19:46,33 a five year plan. For our instance it doesn't make sense to pay twenty five 243 00:19:46,34 --> 00:19:49,34 thousand dollars for the vehicle just to recoup it in five years because that's 244 00:19:49,35 --> 00:19:52,75 a lot of money per vehicle what we're doing is we're just fine it's in 245 00:19:52,76 --> 00:19:56,56 a portion of vehicle if we know you're going to sell it in five years from us the 246 00:19:56,57 --> 00:20:00,57 exact same price you purchased the vehicle for all of this managed properly then 247 00:20:00,58 --> 00:20:01,63 we're just going to have you finance 248 00:20:01,64 --> 00:20:06,86 a portion of the vehicle and build equity so example is the vehicles purchased for 249 00:20:06,87 --> 00:20:12,78 twenty five we have you finance it down to ten even though in five years roughly 250 00:20:12,79 --> 00:20:17,79 with scratches dents and things the low miles it's going to be worth twenty two K. 251 00:20:18,16 --> 00:20:19,38 What we're doing is we're building 252 00:20:19,39 --> 00:20:26,28 a safety net so twenty five pay down to ten just to finance it's fifteen thousand 253 00:20:26,29 --> 00:20:30,06 dollars you take that fifteen you divide it by five years it's three thousand bucks 254 00:20:30,07 --> 00:20:33,82 a year so what we're advising you guys to do is to get kind of in the business 255 00:20:33,83 --> 00:20:34,37 enterprise around 256 00:20:34,38 --> 00:20:39,42 a car does where we're have an expense of three thousand dollars every year and 257 00:20:39,43 --> 00:20:40,40 we're rotini our vehicles on 258 00:20:40,41 --> 00:20:44,16 a healthy rotation now your five year where you're like why is it showing twenty 259 00:20:44,17 --> 00:20:48,00 three thousand well in the year one we're showing you purchased 260 00:20:48,01 --> 00:20:52,42 a lot of vehicles in the first year so all those vehicles are paid to hound in my 261 00:20:52,43 --> 00:20:57,28 example of ten thousand dollars we're going to sell those vehicles for you get you 262 00:20:57,29 --> 00:21:01,25 guys out of the used car market we're going to sell those vehicles for you you guys 263 00:21:01,26 --> 00:21:07,77 get to recruit all the gains of what you owe what we can sell it so if we have 264 00:21:07,96 --> 00:21:13,65 forty to fifty vehicles and ten thousand dollars oh but we can sell him for twenty 265 00:21:13,96 --> 00:21:15,19 that's ten thousand dollars 266 00:21:15,20 --> 00:21:20,25 a vehicle times the say forty vehicle that's four hundred thousand dollars coming 267 00:21:20,26 --> 00:21:24,52 back to the city which a lot of people what they do at that time roll it into 268 00:21:24,53 --> 00:21:29,12 a new big drive down the costs keeps you in safer vehicles keeps the mains down 269 00:21:29,42 --> 00:21:32,43 gives you want to want to know what works for you guys if you're capturing the 270 00:21:32,44 --> 00:21:36,29 depreciation which is not usual to the city at all 271 00:21:40,02 --> 00:21:46,65 if I can. So if you look if you go right now 272 00:21:46,66 --> 00:21:48,60 to the Ford dealer and go look at 273 00:21:48,61 --> 00:21:50,98 a brand new truck off that you're going to get an M.S.R. P. 274 00:21:50,99 --> 00:21:56,72 Price suggested what the dealership should buy governments are guaranteed roughly 275 00:21:56,73 --> 00:22:00,42 about ten thousand dollars and this is specific to that one vehicle because they're 276 00:22:00,43 --> 00:22:05,84 all difference on us but it's about ten thousand dollars off invoice so what we're 277 00:22:05,85 --> 00:22:09,07 trying to go share with that dealership you guys don't have to negotiate you guys 278 00:22:09,08 --> 00:22:09,19 get 279 00:22:09,20 --> 00:22:13,88 a guarantee with the ten thousand dollars coming out that vehicle so all we're doing 280 00:22:13,89 --> 00:22:18,36 is giving you guys the expertise that Enterprise Rent-A Car does and allowing you 281 00:22:18,37 --> 00:22:21,84 guys to not be in the vehicle business we're trying to where you guys are spending 282 00:22:21,85 --> 00:22:24,72 not a lot on depreciation right now you're spending 283 00:22:24,73 --> 00:22:29,24 a lot more maintenance in fuel we want to move your maintenance and fuel costs over 284 00:22:29,28 --> 00:22:32,07 to depreciation what that allows you do is have more of 285 00:22:32,08 --> 00:22:38,23 a fixed cost with that allows Michelle to do why she's going after budget that 286 00:22:38,24 --> 00:22:44,30 allows her to understand and start becoming you know our exposure and so your other 287 00:22:44,31 --> 00:22:48,13 question you had was the average sustainable sixteen thousand why is that different 288 00:22:48,57 --> 00:22:48,82 this is 289 00:22:48,83 --> 00:22:53,37 a ten year plan to get you guys rotated once you see what this plan looks like and 290 00:22:53,38 --> 00:22:58,31 then sustainable savings is what we're expecting you guys have kind of be hacked 291 00:22:58,36 --> 00:23:02,27 versus where you're at today's A ten years from now the next following ten years 292 00:23:02,28 --> 00:23:05,72 after that you're going to be saving about sixteen thousand dollars 293 00:23:05,96 --> 00:23:11,04 a year versus what you are currently doing before and that's looking ten years out 294 00:23:11,33 --> 00:23:15,67 so we're just looking at our sustainable savings as you have newer vehicles no 295 00:23:15,68 --> 00:23:19,54 downtime under warranty and if you talk to Lake city of Somerset the biggest issue 296 00:23:19,55 --> 00:23:24,66 was safety. We have vehicles that are being driven that are twenty five thirty hers 297 00:23:24,67 --> 00:23:26,82 old and you asking these guys to do work in 298 00:23:26,83 --> 00:23:30,08 a minutes we want to make sure that they are safe and the other part of the safety 299 00:23:30,09 --> 00:23:33,93 is you've got to track these things because if you're going to employ they're just 300 00:23:33,97 --> 00:23:34,50 using it as 301 00:23:34,51 --> 00:23:38,70 a tool to get in the vehicle driving whatever side doing the work get out of the 302 00:23:38,71 --> 00:23:40,90 vehicle going home they're not like 303 00:23:40,94 --> 00:23:44,45 a personal vehicle we're like oh one is last time I got an oil change When's the 304 00:23:44,46 --> 00:23:46,92 last time this was done that's kind of why we want to as 305 00:23:46,93 --> 00:23:52,20 a part of this plan track that stuff to show long term commitment and. The other 306 00:23:52,21 --> 00:23:58,38 item is the contract is just to get us to the next level. We could come back to you 307 00:23:58,39 --> 00:24:03,65 and say hey we show forty vehicles and you guys can say no you ten or No five or no 308 00:24:03,82 --> 00:24:08,88 one that's what you guys this does not guarantee that they have to do forty fifty 309 00:24:09,11 --> 00:24:12,88 twelve vehicles what we're just trying to do is get to the point where now we can 310 00:24:12,89 --> 00:24:17,08 put solid numbers on paper and then you guys and then the day make the decision we 311 00:24:17,09 --> 00:24:20,07 work for you guys so we'll make recommendations but 312 00:24:20,25 --> 00:24:24,73 a lot of the cities they're big sell point is you're still our boss I'll come to 313 00:24:24,74 --> 00:24:28,64 you and tell you to switch twenty five vehicles and you'll tell me no that's fine 314 00:24:28,65 --> 00:24:33,88 that's kind of perceptions we're going to have we're going to. I think it would 315 00:24:33,89 --> 00:24:38,91 make sense to not do all at the same time and to kind of get things into some sort 316 00:24:38,92 --> 00:24:42,16 of you know we can so I'll make 317 00:24:42,17 --> 00:24:49,12 a motion to that what do you need direction. For just 318 00:24:49,13 --> 00:24:53,25 about to prove that we continue to have discussions that go to the next level of 319 00:24:53,26 --> 00:24:58,98 work back on the lived bus and then they back Commissioner Terry it's our second. 320 00:25:03,51 --> 00:25:08,51 Commission here let's say we are in discussion with I think we have discussed in 321 00:25:08,52 --> 00:25:14,20 the. All in favor of the motion saying about us saying I would like our local 322 00:25:14,21 --> 00:25:20,22 carrier. And I don't I don't do is they need energy efficiency program discussion 323 00:25:21,04 --> 00:25:26,28 and all. This is on that began with Scott 324 00:25:28,11 --> 00:25:33,82 again thank you Byron Commission we've had previous discussions on this opportunity 325 00:25:33,83 --> 00:25:36,43 to. Enter into 326 00:25:36,44 --> 00:25:41,32 a program to save substantial amounts of money over time in terms of our energy 327 00:25:41,39 --> 00:25:47,19 usage and all the things the city uses large amounts of energy for. Detail 328 00:25:47,20 --> 00:25:53,44 presentations of how that would be done. Today. 329 00:25:56,100 --> 00:26:03,82 We have also. Anthony right here 330 00:26:03,83 --> 00:26:08,42 as well if you want to hear from him again but our staff to you is that this will 331 00:26:08,43 --> 00:26:12,52 enable us on the and the programs that we've identified to move into the modern 332 00:26:12,53 --> 00:26:19,46 area era management of our utilities to provide for greater accuracy and savings in 333 00:26:19,47 --> 00:26:25,67 operations to place. Outmoded equipment and to achieve 334 00:26:25,68 --> 00:26:30,44 a savings over time from doing that it's the public private partnership that we 335 00:26:30,45 --> 00:26:34,60 hear a lot about sometimes in the end this is 336 00:26:34,61 --> 00:26:40,100 a practice that number of students get entered into and it's our first real 337 00:26:41,01 --> 00:26:45,94 opportunity for saving so time they have that pro-forma OK it's thirteen of your 338 00:26:45,95 --> 00:26:51,28 proposal that shows the magnitude of those savings. I don't know if you want to 339 00:26:51,29 --> 00:26:55,01 hear more from staff or Mr Ryder for just want to go to questions at this point 340 00:26:58,17 --> 00:27:05,01 but your pleasure if the well so if. So one could 341 00:27:05,02 --> 00:27:11,20 just direct for the record The predict the Koso do term budget know who will record 342 00:27:11,20 --> 00:27:17,77 . The predicted savings believe they're going to get. Right now that projected cost 343 00:27:17,78 --> 00:27:18,67 of the project is 344 00:27:18,68 --> 00:27:22,95 a little over eight million dollars We're still negotiating that that will become 345 00:27:22,96 --> 00:27:27,26 back with the actual contract what that actually think that upgrade the project to 346 00:27:27,27 --> 00:27:32,67 savings is to be hearing out five hundred thirty thousand dollars it was the 347 00:27:32,68 --> 00:27:34,97 cyclist not to mention that we would have 348 00:27:35,01 --> 00:27:41,88 a operational. Turnover of that weight for our assets gets turned 349 00:27:41,89 --> 00:27:44,09 over and they get made and it's not 350 00:27:44,10 --> 00:27:50,26 a regular basis and Handley would say that say it energy savings that probably 351 00:27:50,63 --> 00:27:54,83 significantly more than that but that's just that projection without knowing that 352 00:27:54,84 --> 00:27:57,79 at this point in time that is that would be 353 00:27:57,80 --> 00:28:00,19 a guaranteed savings with potentially save 354 00:28:00,20 --> 00:28:04,52 a lot more than that if we don't say that lease that the and that it can in them 355 00:28:04,53 --> 00:28:08,70 have to come back and be you pretty much pay us back now that five hundred thirty 356 00:28:08,71 --> 00:28:12,76 thousand dollars say that is over what period farm is over the twenty year period 357 00:28:12,77 --> 00:28:19,10 of time that it's low in today's dollars because in the back of 358 00:28:21,42 --> 00:28:27,38 both it. That's five hundred thirty thousand dollars over that period of time. 359 00:28:28,42 --> 00:28:34,17 Which which includes our maintenance for ever thunk that that we're not doing 360 00:28:34,18 --> 00:28:37,100 a all of that would not been able to date it would include our might that's for all 361 00:28:38,01 --> 00:28:45,00 the buildings and stuff and that and to me that's one 362 00:28:45,01 --> 00:28:50,58 of the big things just like going to be with people who need bigger Leyton and we 363 00:28:50,59 --> 00:28:55,73 don't have the time for no good to do that that it's wound up and go from one side 364 00:28:57,79 --> 00:29:01,99 but the commission might ask themselves what's the alternative to that say it would 365 00:29:02,00 --> 00:29:08,64 be for the city to incrementally like all of those. Purchases and 366 00:29:08,76 --> 00:29:15,50 have. Higher cost probably in the mean time and so we don't have pro forma for 367 00:29:15,51 --> 00:29:17,48 that but we're pretty certain that's going to be 368 00:29:18,04 --> 00:29:22,93 a greater cost than the guaranteed say the expected here over the next twenty years 369 00:29:23,40 --> 00:29:29,11 plus we lose the ability to have the operational improvements that will it benefit 370 00:29:29,12 --> 00:29:34,74 by problem areas much sooner. We have the monitoring system that we talked about in 371 00:29:34,75 --> 00:29:38,88 terms of our buildings. And that there are just 372 00:29:38,89 --> 00:29:44,34 a lot of advantages under this program plus it's it's the right thing to do it 373 00:29:44,35 --> 00:29:47,35 logical Well I think logically it is it's a great puts us on 374 00:29:47,36 --> 00:29:53,79 a green map for labor city operates and that's important many of the students have 375 00:29:53,80 --> 00:29:57,82 done this. And. 376 00:30:03,100 --> 00:30:07,57 They say that the 377 00:30:20,31 --> 00:30:22,49 what's the smallest community and then the same. 378 00:30:33,15 --> 00:30:37,32 Jury you know most in the mobile who can hope for the quick endeavor the motion. 379 00:30:42,18 --> 00:30:47,07 Now move that really go forward with the Senate G freshie program discussion like 380 00:30:47,08 --> 00:30:52,56 the commissioners here says are second looking if you push that because now when I 381 00:30:52,57 --> 00:30:57,97 had I had one more question certainly taking time we played time. Similar to the 382 00:30:58,01 --> 00:31:04,10 this leasing program been we. Are we going to decide from here what 383 00:31:04,48 --> 00:31:08,48 specifically we will do I mean we don't have to do the entire A million dollar. 384 00:31:10,33 --> 00:31:10,80 Give the den 385 00:31:10,81 --> 00:31:15,16 a five within this projection of the the actual activities that we intend to pursue 386 00:31:15,17 --> 00:31:19,78 So those have been identified we talked about those at the last meeting show you 387 00:31:19,79 --> 00:31:24,31 mine for them or recall all the projects of those who did that they but I think we 388 00:31:24,40 --> 00:31:28,92 get I missed that meeting Oh yeah we we we discussed those I have let me try to get 389 00:31:28,93 --> 00:31:32,48 rundown a lot of them. On the chilly side 390 00:31:32,49 --> 00:31:37,70 a big change in our majors over to. Try to migrate majors which we're going to get 391 00:31:37,71 --> 00:31:37,90 rid of 392 00:31:37,91 --> 00:31:41,93 a lot of the only years that we have the ground give us better accuracy and better 393 00:31:41,94 --> 00:31:46,92 ratings and we could help and in fact Leaks much quicker so it's going to help our 394 00:31:46,93 --> 00:31:51,15 Mutela he says System tremendously in that in that area and also free up our 395 00:31:51,16 --> 00:31:55,11 manpower so that we can be a lot more proactive instead of reactive X. 396 00:31:55,12 --> 00:31:58,69 We are right now because we will have to have as much manpower as rating when we 397 00:31:58,70 --> 00:32:04,17 get the new meters. As far as the bill then think it's in consideration it's of 398 00:32:04,18 --> 00:32:07,56 course this built in with the heat in their system and trying to get it more 399 00:32:07,68 --> 00:32:12,83 stabilized where it's never been stable last since we got them it's working oh 400 00:32:12,84 --> 00:32:15,11 we're. Doing 401 00:32:15,12 --> 00:32:19,17 a little work over at the community art center for the norm and put them on at 402 00:32:19,18 --> 00:32:24,19 night that's contract also with their heat in their units and it's that the weather 403 00:32:24,20 --> 00:32:27,72 here that they sense filters like down there and they have been changed in the days 404 00:32:27,73 --> 00:32:32,85 that now ten we don't have to Cincinnati to do it to have it gets done 405 00:32:32,94 --> 00:32:37,36 a better schedule also our parking garage is changing the lights out in the park 406 00:32:37,37 --> 00:32:42,77 right so that their mother economical. It's talks about fire station we didn't we 407 00:32:42,85 --> 00:32:44,87 exploded our special moment because we're going to have 408 00:32:44,88 --> 00:32:47,80 a much bigger project for that so we want to fire station two we can close 409 00:32:47,81 --> 00:32:52,87 a little bit of work out there that's might it's contracts out there also. We 410 00:32:52,88 --> 00:32:57,73 exclaim requests we just had there are of our plants in the construction so if that 411 00:32:57,74 --> 00:33:01,00 went over the debt and we're going to we excluded our syrup plan also cause this 412 00:33:01,01 --> 00:33:01,25 has 413 00:33:01,26 --> 00:33:08,16 a big construction project coming up ah so and. What we also look at the park 414 00:33:08,20 --> 00:33:13,41 do in that small area park and one in park that's unlikely yet they are all yeah 415 00:33:15,05 --> 00:33:20,45 at Millennium Park was included. And we get clearly not one listener. 416 00:33:22,93 --> 00:33:29,77 But that may not be the final contract postal but it's in their consideration first 417 00:33:59,22 --> 00:33:59,78 they may be 418 00:33:59,79 --> 00:34:05,21 a messed up but as Bunny Davis in the conversation Lanny Davis building is the 419 00:34:05,31 --> 00:34:12,16 recreation building over now we look at Danny Davis and Millennium Park as 420 00:34:12,17 --> 00:34:18,55 a late addition also that would I would think that the age of that building you 421 00:34:18,56 --> 00:34:19,39 could probably do 422 00:34:19,40 --> 00:34:24,79 a lot of improvements there and say that or gee it's. The Millennium Park the 423 00:34:24,80 --> 00:34:30,94 lighting to Millennium Park is also due to the parking lot lobby there's bigger 424 00:34:31,03 --> 00:34:35,43 there there will be a good savings and all those sort of not 425 00:34:35,44 --> 00:34:42,01 a lot of the city picks up that tab on Millennium Park 426 00:34:44,43 --> 00:34:48,58 Leon those lights that's what you're saying yes yes we don't those lights as we're 427 00:34:48,78 --> 00:34:54,49 sitting on the in our in our partnership with the county How's that cost share 428 00:34:57,41 --> 00:35:03,17 one hundred percent by the city believe as the as our water sewer provision that we 429 00:35:03,21 --> 00:35:08,45 also provide the parks right with water deserve it I mean I think first I think 430 00:35:08,46 --> 00:35:12,59 Mayor we can use some of the stuff that Hampton his group Harshad trains going to 431 00:35:12,60 --> 00:35:18,65 do keep bringing that back to the table and show the inequity censor seems to be 432 00:35:18,66 --> 00:35:23,42 a lot of energy on their part only to focus on Millennium Park I think they need to 433 00:35:23,43 --> 00:35:30,34 just be aware of what our contribution to that part because it's. And another thing 434 00:35:30,35 --> 00:35:33,33 I want to add in. Commissioner Gerry 435 00:35:33,34 --> 00:35:38,78 a message that So one of my questions it really kind of name home to me and Anthony 436 00:35:38,79 --> 00:35:44,54 answered it is that. We should be breakeven every year in terms of our savings on 437 00:35:44,55 --> 00:35:46,86 the cost of doing things or they're going to send us 438 00:35:46,87 --> 00:35:53,66 a check so. I feel good about that. As well 439 00:35:53,88 --> 00:35:54,17 sorry. 440 00:36:01,72 --> 00:36:08,29 But the worst case scenario is will break even any further questions or 441 00:36:08,30 --> 00:36:13,20 comments. Call the place and call for 442 00:36:13,21 --> 00:36:18,50 a vote all in favor of the motion sickness of the saying that. Goes like the motion 443 00:36:18,51 --> 00:36:22,75 carries in the. Lead item Three's 444 00:36:22,76 --> 00:36:28,100 a grand announcement. Mayor and commission I'm going to go to our 445 00:36:29,47 --> 00:36:33,28 city engineer to make that announcement as he was deeply involved in the 446 00:36:33,37 --> 00:36:39,92 application of that be successful 447 00:36:40,23 --> 00:36:43,65 for the corporate drive letter of water line so we want to go ahead and get that 448 00:36:43,66 --> 00:36:47,09 out there for you to. Know that's about 449 00:36:47,10 --> 00:36:53,23 a million dollars to help fund the installation of the water mains that will 450 00:36:53,24 --> 00:36:54,32 eventually make its way to 451 00:36:54,33 --> 00:37:00,89 a new tower on the fair road the big deal cost of that project would be one to the 452 00:37:00,90 --> 00:37:05,28 tower maybe as high as four to six million dollars depending on how actual 453 00:37:05,29 --> 00:37:12,20 constructed the ads come back. But. This phase will be two to four million dollars 454 00:37:12,21 --> 00:37:18,06 depending on competition among bidders really. Anywhere from half to twenty five 455 00:37:18,07 --> 00:37:22,57 percent in the ground exactly. They may even see 456 00:37:22,58 --> 00:37:27,27 a million there is. A reason yet not. 457 00:37:29,95 --> 00:37:36,07 That everything else is. Short and so you carry away. 458 00:37:38,43 --> 00:37:38,76 Mars' 459 00:37:38,77 --> 00:37:45,62 a new day or. And that I want to clearly reckon to my questions about the in the 460 00:37:45,66 --> 00:37:51,03 last people who. Didn't remind folks that I would have him for the genuine genuine 461 00:37:51,04 --> 00:37:57,41 means is will that need you believe me and and my concern always is that Lee get 462 00:37:57,42 --> 00:38:02,54 into some of these need to take in some the really Some been is away from somebody 463 00:38:02,55 --> 00:38:04,14 locally that that would be dealt with for quite 464 00:38:04,15 --> 00:38:08,34 a long time some of let me clarify on that point if I could we had those 465 00:38:08,35 --> 00:38:13,49 discussions with enterprise and they are willing certainly to purchase through 466 00:38:13,50 --> 00:38:17,68 local vendors and still achieve the objectives of the ex-pro Graham so that that 467 00:38:17,69 --> 00:38:20,13 won't be a conflict in fact he's already been there and talked 468 00:38:20,14 --> 00:38:24,32 a lot of interest that he's already been there I had that question forgot to ask he 469 00:38:24,33 --> 00:38:28,63 says he's already talked to don't. Ask where they bought where they purchased their 470 00:38:28,64 --> 00:38:33,61 behavior. You know that's going to be for 471 00:38:33,62 --> 00:38:38,07 a local dealer and we're not obligated but if you want to be unique rude good 472 00:38:39,05 --> 00:38:39,40 looking is 473 00:38:39,41 --> 00:38:45,18 a good thing not the peaceful tokenism. Instantiate be commended for ringing 474 00:38:45,19 --> 00:38:51,69 through our digits. To echo that sentiment sure I agree and then they run parallel 475 00:38:52,75 --> 00:38:59,38 terms of cost savings it's mission safe keeping up to date. Only gri. 476 00:39:00,49 --> 00:39:05,98 Gri keep those cups labels are doing else 477 00:39:08,23 --> 00:39:15,15 good air motion for German some of the like and they say that all in favor say aye 478 00:39:15,54 --> 00:39:19,91 I always liked CERN. Thank you you thank.