M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, Town Manager
Date: February 19, 2014
Re: City of Lake City (RFP # 011-2010) - Fleet Leasing & Management Program “Piggy-Backing”
REQUESTTitle
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, AUTHORIZING THE TOWN MANAGER TO NEGOTIATE A MASTER EQUITY LEASE AGREEMENT AND A MAINTENANCE AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT, INC.; AUTHORIZING THE TOWN MANAGER TO EXPEND BUDGETED FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
Town Staff, in an ongoing effort to modernize and streamline all of the services provided by the Town, has been investigating/evaluating our current vehicle fleet maintenance, fueling and future replacement options. As a result of our investigation, Town Staff is recommending “Piggy-Backing” an existing Fleet Leasing & Management Program Agreement (RFP # 011-2010) from the City of Lake City, Florida, awarded to Enterprise Fleet Management, Inc. (See Attachment “A”)
The proposed Fleet Leasing & Management Program will provide the Town with a continuously up-to-date fleet of vehicles, remove the burden of providing yearly increasing vehicle maintenance cost, streamline vehicle fueling procedures, and most importantly, provide the Town with a fixed yearly cost(s) for fleet maintenance and replacement programs. Based on Town Staff review of the City of Lake City’s results of the Fleet Leasing & Management Program, in which they converted approximately 105 vehicles, the program has allowed them to create a lower sustainable fleet cost, free-up maintenance resources, improve fuel economy and create an improved image to the community. (See Attachment “B”)
The proposed multi-year Fleet Leasing & Management Program will allow the Town to budget the same dollar amount for vehicle maintenance and replacement on an annual basis, taking the guess-work out of the annual budgeting for vehicle capital and maintenance costs. By maintaining a fixed cost(s) for vehicle fleet maintenance and replacement will eliminate capital equipment cost “spikes” from occurring when several vehicles are due for replacement from one fiscal year to the next.
Based on Lake City’s Fleet Leasing & Management Program (RFP # 011-2010), administered by Enterprise Fleet Management Inc., the Town’s existing fleet of ten (10) vehicles will be replaced during the remainder of the 2013-14 fiscal year, and then replaced a minimum of every five (5) years thereafter, depending on vehicle mileage and years of service. Enterprise Fleet Management Inc. has provided the Town with a detailed Fleet Planning Analysis, utilizing the same terms and conditions as specified in Lake City’s RFP # 011-2010. (See Attachment “C”)
The proposed fleet replacement schedule will ensure that the Town is able to take advantage of the newest vehicle technologies available, and will ensure that the Town’s fleet will remain on the cutting edge for “fuel efficiency” and “greenhouse gas emissions.” Additionally, the Town will recognize a projected five (5) year savings of approximately $298,000 and reduction of annual operating maintenance and fuel cost(s) of fifty-seven percent (57%).
All routine fleet maintenance will be the responsibility of Enterprise Fleet Management Inc., and will be performed by local Town vendors. Fueling services will also be coordinated through Enterprise Fleet Management Inc., increasing fueling options and utilizing local Town vendors.
In addition, one of the options specified within the Lake City Fleet Leasing & Management Program, is to authorize Enterprise Fleet Management Inc. to act as the City’s “agent” in the sale/disposal of existing fleet vehicles. As a result of that option, Town staff recommends to exercise this option, in order to expedite the replacement of the Town’s current fleet and apply all sale proceeds into the annual lease cost.
RECOMMENDATION
We recommend that the attached resolution be adopted, authorizing the Town Manager to negotiate a Fleet Leasing & Management Program Agreement with Enterprise Fleet Management Inc., under the “same terms and conditions” as specified in the City of Lake City RFP # 011-2010.