Submitted By
Rob Sproule, Public Works Director
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving an Intergovernmental Agreement between the Village of Oak Park and the Oak Park Township for Vehicle Repairs and Maintenance and Authorizing its Execution
End
Overview
Overview
The Public Works Department’s Fleet Division is responsible for the maintenance and repair of Village vehicles and equipment. The Oak Park Township inquired as to the feasibility of the Village maintaining its vehicles. The Fleet Division has investigated the scope of need and can accommodate this request. The attached Intergovernmental Agreement (IGA) would formalize this service.End
Recommendation
Recommendation
Adopt the Resolution.
Background
The Public Works Department’s Fleet Division is responsible for the maintenance and repair of the Village’s fleet of vehicles and equipment. In addition to maintaining Village vehicles and equipment, the Village also has an IGA to maintain the Park District’s vehicles and equipment to allow them to take advantage of the Village's favorable shop rate. The Oak Park Township inquired if the Village Fleet division would be open to maintaining the Township's vehicles. After consultation with the Oak Park Township to assess their needs and investigating the Village’s current shop workload, it was determined that this was a feasible option.
The Public Works Department maintains two hundred and ten Village vehicles and pieces of equipment. The Township currently has four vehicles that require regular repair and maintenance, three buses, and one meal delivery pick-up truck. Repairs are made based on priorities of the equipment usage (i.e., Police and Fire first then Public Works, Park District, or Township vehicles) as determined by need.
The Public Works Department’s Fleet Division has determined the Village’s costs for fleet services based on the American Public Works Associations model for charging for services.
Retail repair shop labor rates in the Oak Park area for various services range from $100 per hour to $150 per hour with an average of approximately $122 per hour. The Village marks up parts by 30% to cover the cost of procurement. This is a typical industry standard.
Fiscal Impact
Per the terms of the IGA, the Township would reimburse the Village monthly for repair and maintenance services along with the cost of required parts. The Township will pay the Village’s shop rate of $94.04 per hour for repair and maintenance in 2023. This rate will be adjusted annually based on the Villages shop rate. Parts supplied for services shall be the actual cost for parts plus the 2023 rate of 30%, above the Village’s costs for parts in order to reimburse the Village for its administrative costs.
DEI Impact
N/A
Alternatives
The Board can delay action to gain additional information.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
The Agreement will be brought up for renewal at the end of the five-year term.
Intergovernmental Cooperation Opportunities
This is an excellent example of local taxing bodies sharing services to reduce overall costs.