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HomeMy WebLinkAboutE-06 Approve Lease of a TruckCONSENT ITEM E-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: AUGUST 15, 2016 SUBJECT: APPROVE LEASE OF A TRUCK FROM ENTERPRISE FLEET MANAGEMENT SUMMARY: The Public Works Department utilizes a standby vehicle as a roving vehicle with tools and supplies available for Public Works staff during the work day and as a fully stocked vehicle available for emergency call-outs for standby staff during off hours. The current standby truck is a 1997 Chevy with high mileage that is due to be replaced. This action waives the competitive bid process as authorized under Section 2.521 (a) of the Azusa Municipal Code and approves the lease of a new truck from Enterprise Fleet Management. RECOMMENDATION: Staff recommends that the City Council take the following action: 1) Waive the competitive bidding process 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) truck through the use of a bid with TIPS-USA; and 2) Authorize the City Manager to execute a lease agreement with Enterprise Fleet Management, in a form acceptable to the City Attorney, on behalf of the City. DISCUSSION: Public Works staff utilizes a standby vehicle, which is fully equipped with tools and supplies, during the regular work day as a rover available for any task needed. During off work hours, this fully stocked truck is utilized by standby Staff for emergency call outs. It is important for a reliable, fully stocked truck to be available at all times for emergency purposes to reduce response time and increase efficiency. The current standby truck is a 1997 Chevy, which has exceeded its useful life and is not APPROVED COUNCIL MEETING 8/15/2016 Approval of Lease with Enterprise Fleet Management August 15, 2016 Page 2 functioning well mechanically. Replacement of the standby truck was approved in the FY 16 -17 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 standby 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 standby 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 proposed lease of the standby truck is $537.15 monthly or $6,445.80 annually. Funds to cover the lease were approved in the FY 16-17 budget within the Sewer Fund. Prepared by: Reviewed and Approved: Nikki Rosales Daniel Bobadilla, P.E. Senior Management Analyst Director of Public Works/City Engineer Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachment: 1) Enterprise Fleet Management Quotation