HomeMy WebLinkAboutE-08 Staff Report - Enterprise Replacement Vehicles 2017CONSENT ITEM
E-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: DON PENMAN, INTERIM CITY MANAGER
FROM: DANIEL BOBADILLA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: DECEMBER 4, 2017
SUBJECT: APPROVE LEASE AGREEMENTS WITH ENTERPRISE FLEET MANAGEMENT
FOR THE REPLACEMENT OF SIX VEHICLES
SUMMARY:
The Public Works Department has been working with Enterprise Fleet Services since 2012 on a fleet
replacement strategy to replace older vehicles. This effort has reduced operating costs and lowered the
average age of the fleet. Vehicles are leased for a 60-month period during which there are no mileage
restrictions or wear and tear charges. At the conclusion of the lease agreements, the City has the option
to purchase the vehicles or return the vehicles at fair market value and enter into new lease agreements
for a similar vehicle. A comprehensive maintenance plan is included in the lease price. The City has
participated in several leases under these terms since 2012. The lease period on six of those vehicles is
now complete. The proposed actions will authorize the Interim City Manager to enter into new lease
agreements for the replacement of six vehicles.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Waive competitive bidding as authorized under Azusa Municipal Code Section 2.521(a) and
approve lease agreements with Enterprise Fleet Management for the lease of six (6) replacement
vehicles through the use of a bid with TIPS-USA; and
2) Authorize the Interim City Manager to execute lease agreements with Enterprise Fleet
Management, in a form acceptable to the City Attorney, on behalf of the City.
DISCUSSION:
Since 2012, Staff has been working with Enterprise Fleet Services on a fleet replacement strategy in an
effort to replace older vehicles, which incur higher maintenance costs. Vehicles are leased for a 60-
month period during which there are no mileage restrictions and no wear and tear charges. The
APPROVED
CITY COUNCIL
12/4/2017
exception to this arrangement was the Administration vehicle lease, which was prepaid due to special
funding subject to lapse. This vehicle and five (5) additional vehicles leased under these terms have now
reached their lease expiration date. The City now has the option to purchase the vehicles or return the
vehicle at fair market value and enter into a new lease agreement for a similar vehicle. Since the City no
longer has a Garage to maintain its fleet, it is considered more cost effective to enter into new leases.
The vehicles subject to lease expiration and subsequent replacement are as follows:
Item# Department Current
Vehicle
Lease
Amount
Proposed
Vehicle
Lease
Amount
Funding
Source
1 Public Works 2012 Ford
F250
$432.15 2018 Ford F250
w/toolbox
$475.15 Gas Tax
Fund 12
2 Public Works 2012 Ford
F250
$526.39 2018 Ford F250
w/toolboxes/rack
$609.63 Sewer
Fund 34
3 Public Works 2013 Ford
E350
$527.60 2018 Ford 350
Super Duty
$555.56 Graffiti
Fund 10
4 Parks & Rec 2012 Ford
F250 Lift
Gate
$534.38 2018 Ford F250
Lift Gate
$622.54 General
Fund 10
5 Parks & Rec 2012 Ford
F250 Lift
Gate
$530.04 2018 Ford F250
Lift Gate
$622.54 Rosedale
Fund 37
6 Administration 2014 Ford
Fusion
Hybrid
$52.38* 2018 Toyota
Prius
$327.59 AB 2766
Fund 27
*This vehicle lease was prepaid with AB2766 funds prior to lapsing. The $52.38 represents the
maintenance program only.
The City’s purchasing procedures allow for the acquisition of equivalent equipment through a process of
competitive bidding by using other municipalities or through joint powers programs. In this case,
Enterprise Fleet Management was identified through a bid with The Interlocal Purchasing System
(TIPS) to provide the vehicles the City is seeking at competitive prices. As a result the City can achieve
the benefits of a competitive bid without the additional costs and delays associated with the standard
procurement process.
Each of the vehicles will be on a 60-month maintenance lease that includes all preventive and
unscheduled repairs (oil changes, brakes, tries, engine, transmission, alternator, etc.); and a 24-hour
roadside assistance. At the conclusion of the lease, the City will have the option to purchase the vehicle
or return the vehicle at fair market value and enter into a new lease agreement for a similar vehicle.
FISCAL IMPACT:
The replacement costs for items # one (1) through five (5) were included in the FY17-18 Adopted
Budget under 12-55-661-000-6823, 34-55-665-000-6823, 10-90-000-000-6823, 10-90-000-000-6823,
and 37-25-420-000-6825 respectively. Item # six (6), the Administration vehicle lease will be funded
with AB2766 funds (AQMD Funds).
Prepared by: Reviewed by:
Nikki Rosales Daniel Bobadilla
Senior Management Analyst Director of Public Works/City Engineer
Fiscal Impact Reviewed by: Reviewed and Approved:
Talika M. Johnson Louie F. Lacasella
Director of Finance Senior Management Analyst
Reviewed and Approved:
Don Penman
Interim City Manager
Attachment:
1) Enterprise Fleet Management Quotations
Attachment 1