| | | | | | | |  | STAFF REPORT
For Meeting of October 22, 2018
MAYOR AND MEMBERS OF THE CITY COUNCIL | Agenda Item # 10.D.
TITLE: Resolution No. 2115- Approval of The Interlocal Purchasing System Membership and Enterprise Fleet Management Agreement |
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| | | | | | | | Subject
Approval, by resolution, of The Interlocal Purchasing System membership and and all documents related to engage Enterprise Fleet Management in a fleet lease and maintenance program for the city of Hermiston.
Summary and Background
Discussions started in August with Enterprise Fleet Management ("EFM".) to assess the value of utilizing their services to lease vehicles for the city's use rather than continuing to buy vehicles outright. Utilization of EFM's fleet lease program (through membership in The Interlocal Purchasing Services - "TIPS") will provide performance/maintenance data on any new lease vehicles as well as incorporate/capture existing fleet vehicles performance/maintenance information to develop a fleet wide cost for maintenance and service. Leases will be for a minimum of six years which would ensure the vehicle is replaced at an optimal time to maximize not only the resale value of the vehicle, but to also minimize maintenance costs that increase with the age of the vehicle. Finally, utilizing a fleet lease program allows the city to better utilize its resources to provide for a safe and efficient fleet when compared to buying vehicles outright and keeping them in service for 12 to 15 years.
Tie-In to Council Goals:
NA
Fiscal Information
Utilizing a total of $93,000 budgeted for three vehicles in FY 2018-19 to, instead, lease five service vehicles for Water (2), Recycled Wastewater (2) and for Code/Inspections (1), totaling approximately $30,000 in lease payments for the next twelve months.
Alternatives and Recommendation
Alternatives
1. Approve the application for membership in TIPS (and related agreements to engage Enterprise Fleet Management for a fleet lease program.)
2. Do not approve the application for membership in TIPS (and related agreements to engage Enterprise Fleet Management for a fleet lease program.)
3. Direct city staff to do further analysis research on this topic.
Recommendation
Recommend approval of the application for membership in TIPS (and related agreements to engage Enterprise Fleet Management for a fleet lease program.)
Requested Action/Motion
Request approval of Resolution 2115 to authorize the city of Hermiston to participate in The Interlocal Purchasing System ("TIPS") and approval of the execution of all documents with Enterprise Fleet Management to engage in a fleet lease program.
Submitted By: Mark Krawczyk |
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