The URL can be used to link to this page

Home My WebLink AboutE-12 Staff Report - Lease of Lift Gate from EnterpriseCONSENT ITEM E-12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES DATE: SEPTEMBER 18, 2023 SUBJECT: APPROVAL OF LEASE AGREEMENT WITH ENTERPRISE FLEET FOR COMMUNITY RESOURCES LIFT GATE TRUCK BACKGROUND: The City of Azusa has been working with Enterprise Fleet Services since 2012 on a fleet replacement strategy. 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 for sale at fair market value and enter into new lease agreements. Community Resources is often hauling equipment from one location to another. Without a designated vehicle, Community Resources must borrow another department’s vehicle and work around already scheduled vehicle obligations. As the number of events has increased, the ability to coordinate has become challenging. The proposed actions will authorize the City Manager to enter into a lease agreement for a 2024 Chevrolet Silverado Lift Gate. RECOMMENDATIONS: Staff recommends that City Council take the following action(s): 1)Waive competitive bidding as authorized under Azusa Municipal Code Section 2.521(a) and approve the lease agreement with Enterprise Fleet Management for the lease of a 2024 Chevrolet Silverado Lift Gate through the use of a bid with TIPS-USA; and, 2)Authorize the City Manager to execute the lease agreement with Enterprise Fleet Management. ANALYSIS: Since 2012, the City has been working with Enterprise Fleet Services on a fleet management strategy in an effort to keep the fleet fresh and reduce maintenance costs. Vehicles are leased for a 60-month period Approved City Council September 18, 2023 Enterprise Fleet Lift Gate September 18, 2023 Page 2 during which there are no mileage restrictions and no wear and tear charges. At the end of the lease, the City has the option to purchase the vehicle or sell it at fair market value. Community Resources programming requires equipment to be moved on a regular basis. Without a vehicle assigned to the Department, coordination as well as the ability to fulfill obligations has been challenging. The lease of the 2024 Chevrolet Silverado Lift Gate will enable staff to perform these tasks without the need for coordination with other departments and will improve efficiency within the Department. Vehicle Department Proposed Vehicle Lease Amount Funding Source 1 Community Resources 2024 Chevrolet Silverado 2500HD $1,212.72 General Fund 10 FISCAL IMPACT: A down payment of $1,730.91 is due upon delivery. Montly payments of $1,212.72 for five years include the Enterprise maintenance. The lease of this vehicle is included in the FY23-24 Capital Outlay budget payable from the General Fund (10-25-410-000-7135). Prepared by: Reviewed and Approved: Nikki Rosales Miki Carpenter Senior Management Analyst Director of Community Resources Fiscal Review by: Reviewed and Approved by: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1) Enterprise Lease Rate Quote .,,,.,nterprise FLEET MANAGEMENT Open-End (Equity) Lease Rate Quote Quote No: 7436820 Prepared For: City of Azusa Unit# Year 2024 Make Chevrolet Model Silverado 2500HD Series Work Truck 4x 2 Double Cab 8 ft. box 162 in . WB Vehicle Order Type Ordered Term 60 State CA Customer# 297590 $52,321.81 $ 0.00 $ 737.40 $ 0.00 $ 375.00 $1,569.99 $160.92 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Capitalized Price of Vehicle 1 Sales Tax� State .Q8 Initial License Fee Registration Fee Other: (See Page 2) Capitalized Price Reduction Tax on Capitalized Price Reduction Gain Applied From Prior Unit Tax on Gain On Prior Security Deposit Tax on Incentive ( Taxable Incentive Total : $0 .00 ) Total Capitalized Amount (Delivered Price) Deprec iation Reserve @ 1 5000% Date 08/23/2023 AE/AM RRM/J B9 All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote. Order Information Driver Name ALT Exterior Color (0 P) Summit White Interior Color (0 I) Jet Black wNinyl Seat Trim Lie. Plate Type Exempt GVWR 0 $51,126.82 $ 766.90 $ 248.52 Monthly Lease Charge (Based on Interest Rate -Subject to a Floor)2 $1,015.42 $ 0.00 $ 0.00 $ 93.22 $ 93.22 $104.08 $1,212.72 $5,112.82 $ 400.00 Total Monthly Rental Excluding Additional Services Additional Fleet Management Master Policy Enrollment Fees Commercial Automobile Liability Enrollment Liability Limit !2:_22 Physical Damage Management Full Maintenance Program 3 Contract Miles 30,000 Incl:# Brake Sets (1 set= 1 Axle)� Additional Services SubTotal Sales Tax 10.2500% Total Monthly Rental Including Additional Services Reduced Book Value at§.Q Months Service Charge Due at Lease Termination Quote based on estimated annual mileage of6,000 (Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval) Notes Comp/Coll Deductible OverMileage Charge #Tires 4 State CA 0/0 $ 0.0350 Per Mile Loaner Vehicle Not included Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open -End (Equity) Lease Agreement with respect to such vehicle. Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity} Lease Agreement until the vehicle is sold. ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR. Lessee hereby authorizes this vehicle order, and agrees to lease the vehicle on the terms set forth herein and in the Master Equity Lease Agreement. In the event Lessee fails or refuses to accept delivery of the ordered vehicle, Lessee agrees that Lessor shall have the right to collect damages, including, but not limited to, a $500 disposal fee, interest incurred, and loss of value. LESSEE City of Azusa BY • INDICATES ITEMS TO BE BILLED ON DELIVERY. TITLE DATE 1 Capitalized price of vehicle may be adjusted to reflect final manufacturefs invoice. plus a pre delivery interest charge. Lessee hereby assigns to Lessor any manufacturer rebates and/or manufacturer incentives intended for the lessee, which rebates and/or incentives have been used by Lessor to reduce the capitalized price of the vehicle. 2 Monthly lease charge will be adjusted to reflect the interest rate on the delivery date (subject to a floor). 3 The inclusion herein of references to maintenance fees/services are solely for the administrative convenience of Lessee. Notwithstanding the inclusion of such references in this [Invoice/Schedule/Quote], all such maintenance services are to be performed by Enterprise Fleet Management, Inc., and all such maintenance fees are payable by Lessee solely for the account of Enterprise Fleet Management, Inc., pursuant to that certain separate [Maintenance Agreement] entered into by and between Lessee and Enterprise Fleet Management. Inc.; provided that such maintenance fees are being billed by Enterprise FM Trust, and are payable at the direction of Enterprise FM Trust, solely as an authorized agent for collection on behalf of Enterprise Fleet Management, Inc. Printed On 08/23/2023 07:04:35 PM Page 1 of 7 Attachment !