HomeMy WebLinkAboutE-6 Staff Report - Lease of Electric Cargo Van from EnterpriseCONSENT ITEM
E-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES
DATE: MAY 6, 2024
SUBJECT: APPROVAL OF LEASE AGREEMENT WITH ENTERPRISE FLEET FOR
COMMUNITY RESOURCES ELECTRIC CARGO VAN
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 to various event locations utilizing multiple personal
vehicles. The cargo van would allow staff to operate more efficiently and safely by providing the
opportunity to haul everything needed in one vehicle with the appropriate space. The proposed actions
will authorize the City Manager to enter into a lease agreement for a 2023 Ford Transit-350 Electric
Cargo Van w/Medium Roof.
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 2023 Ford
Transit-350 Electric Cargo Van w/Medium Roof 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
May 6, 2024
Enterprise Fleet Cargo Van
May 6, 2024
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 event equipment to be moved on a regular basis. Recently,
the Department procured a Lift Gate and while that has been beneficial for the heavy equipment, there is
an additional need for a vehicle to haul smaller event equipment efficiently. Charging infrastructure for
electric vehicles is underway and should be completed over the next few months, prior to receipt of the
vehicle.
Vehicle Department Proposed Vehicle Lease Amount Funding Source
1 Community
Resources
2023 Ford Transit-
350 Electric Cargo
Van
$1,025.84 monthly AB2766 Fund 27
FISCAL IMPACT:
Monthly payments of $1,025.84 for five years include the Enterprise maintenance for a total cost of
$61,550.40. The lease of this vehicle is included in the FY23-24 Capital Outlay budget payable from the
AB2766 Fund (27-25-523-000-7135).
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 #7923877
Attachment 1