APS CONTRACT FOR SUPPORT FLEET VEHICLES
FREQUENTLY ASKED QUESTIONS
Q. Why is APS implementing this change for its support vehicles?
A. Currently, the district owns and operates a fleet of 139 support vehicles (trucks and vans) utilized by Maintenance & Operations, Transportation and other departments. More than 60 percent of the vehicles are more than 10 years old, and 37 percent are more than 15 years old. Due to drastic state budget cuts that have affected every school, department and division over the past four years, APS lacks adequate funding to support fleet equipment replacement. The inability to update the fleet has resulted in extremely high maintenance costs and time-consuming repair and maintenance demands.
The Enterprise contract is a five-year lease agreement that will enable the district to replace a greater number of its support fleet vehicles than could be purchased with the available budget. The contract will provide a more reliable fleet with lower sustainable fleet costs and reduced maintenance requirements. It will also enable APS fleet mechanics to focus on maintaining the balance of support fleet vehicles as well as buses.
Q. What are the benefits of the contract?
A. The contract will provide APS several benefits:
- A modernized fleet of support vehicles
- Increased fuel efficiency
- Reduced maintenance requirements
- Ability to focus fleet maintenance staff priorities on APS buses
- Potential savings of approx. $336,000 (see question on cost savings)
Q. Does this contract include any safety benefits?
A. Yes. The contract will enable APS to continue its long-standing record of high safety and performance standards.
Q. How does this contract align with VISTA 2015?
A. This contract supports the goals of our VISTA 2015 Strategic Plan by promoting organizational effectiveness, increasing flexibility for staff members, and improving safety for staff and students.
Q. What is included in the Enterprise contract?
A. The Enterprise contract will replace a portion of the support vehicle fleet each year, starting with 36 vehicles in the 2012-13 school year. Vehicles will be selected based on standardized specifications, color, size, and type, according to the district’s requirements. The replacement plan would gradually shorten vehicle life cycle from more than 20 years to 5 to 7 years, resulting in greater dependability and lower operating expenses.
In addition, the Enterprise agreement will include a full maintenance program utilizing local Aurora vendors. Enterprise will provide monthly electronic reporting and tracking for each vehicle as well as a quarterly fleet evaluation to assess costs and review best practices.
Q. How was Enterprise selected as the vendor for this agreement?
A. As per our typical business practice, APS used a Request for Proposal (RFP) process to obtain proposals from potential vendors. Enterprise was the sole vendor that responded to the RFP. The proposal was reviewed and approved by the APS Leadership Team.
Q. How will this contract impact M&O staff?
A. The contract will enable staff to drive and service newer, more fuel efficient vehicles. It will also enable APS fleet mechanics to focus on maintaining the balance of support fleet vehicles as well as buses.
Q. What are the cost/budget implications and long-term savings?
A. The contract will cost between $150,000 and $165,000 per year for the first five years depending on the number of vehicles leased. The budget will be funded from capital reserve funds, which are the current source of funding for the district’s support vehicle fleet. APS projects a savings of more than $336,000 over five years due to lower maintenance costs and improved fuel economy.
For example, in fiscal year 2012-13, the district expects to spend approx. $110,000 for maintenance, repair and supplies for the support fleet, given normal wear and tear (this figure assumes that 20 percent of the fleet is moved to Enterprise). In 2011-12, APS support fleet costs were more than $370,000 (Note: 2011-12 expenditures were higher than expected due to expenses for reconditioned equipment).
Q. Why is it more affordable to lease rather than buy these vehicles?
A. Because of the size of the support fleet, it would not be cost effective to purchase new vehicles. Leasing these vehicles also gives APS the flexibility of making changes to its fleet as needed.
Q. What does APS plan to do with its current fleet of support vehicles?
A. Enterprise will sell APS vehicles scheduled for replacement. Dollars received from the sale will be applied to the vehicle lease ($39,600 during the first year of the contract).
Q. What will APS do with its leased support vehicles when the five-year lease term ends?
A. APS will have three options at the end of lease term. The district could extend the lease, purchase the vehicles, or enter into a new lease agreement. Vehicle equity at the end of the term would be applied to a new lease.
Q. What other school districts, government entities and commercial clients have lease agreements with Enterprise?
A. Enterprise has long-term lease agreements with a number of public organizations, including the city of Loveland, Colorado, Chicago Public Schools and Los Angeles Unified School District. Local commercial clients include GH Phipps Construction, RK Mechanical, Murphy Mechanical, ELight Electric and Palace Construction.