TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary amendments, with Enterprise FM Trust, dba Enterprise Fleet Management, Inc., of St. Louis, MO, to lease vehicles for various Police operations, on the same terms and conditions afforded to Sourcewell, formerly The National Joint Powers Alliance, in an annual amount of $125,656, with a 10 percent contingency of $12,565, for a total annual contract amount not to exceed $138,221, until the Sourcewell contract expires on July 24, 2022, with the option to renew for as long as the Sourcewell contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Enterprise Fleet Management, Inc. (Enterprise), for the lease of up to 20 vehicles, as needed by the Police Department for various operations. This lease agreement will allow the City to replace currently leased vehicles of various makes and models that are now at the end of their term under the previous contract.
The City maintains a wide variety of vehicles to support specialized operations in the Police Department. The current leased vehicles are almost six years old with excessive mileage and have exceeded their efficient and useful life of five years. Leasing a range of newer model vehicles will provide increased fuel efficiency, lower maintenance costs, and greater reliability for specialized Police operations. The lease contract allows for vehicles to be selectively turned in and exchanged for another when that flexibility is required.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
The Fleet Services Bureau and the Purchasing Division in the Financial Management Department investigated procurement options, and the Sourcewell contract (not a SBE, DBE, MBE, WBE, or Local) was determined to be competitively bid using an open, fair, and transparent process and was the best option for this purchase.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on October 1, 2020, Deputy Finance Director Sandy Tsang-Palmer on September 23, 2020, and by Budget Management Officer Rhutu Amin Gharib October 1, 2020.
SUSTAINABILITY
The leased vehicles will be compliant with the State of California and local district air quality regulations.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution is requested on October 20, 2020, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The annual cost of the contract will not exceed $138,221, inclusive of a 10 percent contingency, taxes, and fees, and is budgeted in the Fleet Service Fund Group in the Financial Management Department. Ongoing maintenance expenses estimated at $90,804 annually, and lease charges of $125,656, will be charged to the General Fund Group in the Police Department. All charges will be made through the regular Fleet Services Memorandum of Understanding (MOU) monthly billing process starting when the units are delivered and in use. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER