HomeMy WebLinkAboutE-5 Staff Report - Approval Lift Gate Truck LeaseCONSENT ITEM
E-5
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: OCTOBER 16, 2017
SUBJECT: APPROVE THE LEASE OF ONE LIFT-GATE TRUCK FROM ENTERPRISE FLEET
MANAGEMENT
SUMMARY:
The Public Works Department currently utilizes two vehicles for various maintenance activities. Both
vehicles are 1998 half-ton trucks which require frequent maintenance due to age and prohibit efficiency
due to size. Replacement of these two trucks with one F-350 Super Duty Lift-Gate truck with a light bar,
beacons and an arrow board will enable this truck to be utilized more efficiently and add the capability
of assisting with the Police Department’s HALO program if needed. This action waives the competitive
bid process and approves the lease of a new light-bar truck from Enterprise Fleet Management.
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 a lease contract with Enterprise Fleet Management for the lease of one (1) lift-gate truck
through the use of a bid with TIPS-USA; and
2) Authorize the Interim City Manager to execute a lease agreement with Enterprise Fleet
Management, in a form acceptable to the City Attorney, on behalf of the City; and
3) Approve the change of funds for the F-350 Lift Gate Truck (FY1718 Approved Capital Outlay
item of $63,700) from 100% AQMD fund to 50% Sewer Fund and 50% Gas Tax Fund.
DISCUSSION:
Public Works staff currently uses two vehicles for various maintenance activities. These vehicles are
both 1998 models requiring frequent maintenance and are too small for efficient use. A 2018 F-350
APPROVED
COUNCIL MEETING
10/16/2017
Lift-Gate Truck
October 16, 2017
Page 2
Super Duty Lift Gate truck with a light bar, beacons, and an arrow board will increase efficiency from a
usage standpoint and reduce maintenance costs. Additionally, this truck can be utilized on special
projects such as assisting with the Police Department’s HALO program. Replacement of these two
trucks with one larger, better equipped truck was approved in the FY 17-18 Capital Outlay budget.
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 lift-gate truck the City is seeking at a competitive price. 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.
The lift-gate truck 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.
FISCAL IMPACT:
The total lease is $61,400.46 including lease costs of $50,726.40 ($845.44 X 60 months) plus the initial
down payment of $10,674.06 ($9,748 + 926.06 tax). AQMD Funds for the lease were approved in the
FY17-18 budget. However, it was determined that this type of service body was not a good fit for
Compress Natural Gas (CNG) as it takes up a significant amount of space and weight. Therefore, the
cost of the lift-gate truck will be funded with 50% Sewer Fund (34) and 50% Gas Tax Fund (12) instead.
Upon Council approval, Staff will prepare a budget amendment for the lease costs including $30,700.23
under 12-55-661-000-6823 and $30,700.23 under 34-55-665-000-6823.
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 Quotation