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Home My WebLink AboutCC RESO 2014-98RESOLUTION NO. 2014 — 98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY TO PIGGYBACK THE WEST CONTRA COSTA UNIFIED SCHOOL DISTRICT'S RFP CONTRACT NO. 1112-03 VEHICLE FLEET MANAGEMENT SERVICES WITH ENTERPRISE FLEET MANAGEMENT, INC., CONSISTENT WITH SECTION 2.60.260 OF THE NATIONAL CITY MUNICIPAL CODE REGARDING COOPERATIVE PURCHASING, AND AUTHORIZING THE MAYOR TO EXECUTE THE FOLLOWING AGREEMENTS AND CORRESPONDING DOCUMENTS TO ESTABLISH A VEHICLE LEASING, MAINTENANCE AND MANAGEMENT PROGRAM FOR NATIONAL CITY'S LIGHT AND MEDIUM DUTY VEHICLE FLEET, ESTIMATED AT 74 VEHICLES OVER A 10-YEAR PERIOD: 1) MASTER EQUITY LEASE AGREEMENT WITH ENTERPRISE FM TRUST, INCLUDING CORRESPONDING AMENDMENT, INDEMNITY AGREEMENT, SELF-INSURANCE ADDENDUM AND OFFICER CERTIFICATE, 2) A MAINTENANCE AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT, INC., INCLUDING CORRESPONDING AMENDMENT, AND 3) A SERVICE AGREEMENT REFERENCING THE PIGGYBACK CONTRACT, AND ESTABLISHING NOT TO EXCEED AMOUNTS OF $1,500,000 AND $163,000 FOR THE LEASE AND MAINTENANCE AGREEMENTS, RESPECTIVELY WHEREAS, National City's fleet consists of over 200 vehicles and heavy equipment, which supports all City departments in delivering municipal services to residents, local businesses and visitors; and WHEREAS, much of the City's fleet is aging and in need of replacement. For example, the average life cycle for National City vehicles is approximately 17 years, while some vehicles have been in operation since the 1980's; and WHEREAS, the City currently owns approximately 120 light and medium duty vehicles, of which approximately 25% are Police Department Patrol vehicles ("black & whites"). Light duty vehicles include sedans, vans, SUVs, and small pick-up trucks. Medium duty vehicles include'/2 ton to 11/2 ton trucks; and WHEREAS, currently, the entire fleet is City -owned and maintenance is handled by the City's Vehicle/Equipment Maintenance Division, which consists of one lead mechanic and two equipment mechanics (one of the equipment mechanic positions was recently vacated and will be filled within the next few months). Specialized and extensive maintenance and repairs, as well as "overflow" work, is primarily sent to local mechanic shops in National City; and WHEREAS, the typical vehicle holding pattern for National City is to purchase the vehicle, operate it until it is obsolete, then sell it at auction. In comparison to an industry standard of five to seven years of cost-effective life for the categories of vehicles described above, over two-thirds of National City's vehicles are below this standard; and WHEREAS, traditionally, aging vehicles have not been replaced at the cost- effective point in their lifecycles due to limited capital resources and challenging economic times. The result has been significantly higher maintenance costs (older vehicles result in more frequent "big ticket" repairs), excessive downtime (which results in reliance on more spare vehicles and poor fleet utilization), poor fuel economy, poor service availability, decreased "curbside appeal", and increased greenhouse gas emissions; and Resolution No. 2014 — 98 Page Two WHEREAS, after reaching out to local businesses (such as the Mile of Cars) and exploring joint -use opportunities with other agencies such as the City of Chula Vista, staff has determined that Enterprise Fleet Management offers the most comprehensive services and flexible options to supplement fleet operations for light and medium duty vehicles (excluding Police Patrol vehicles); and WHEREAS, Enterprise Fleet Management will support the City's Vehicle/Equipment Maintenance Division by allowing staff to provide a higher level of service for the remainder of the fleet, including public safety vehicles (Police and Fire Department) and heavy duty vehicles/equipment. Independent of the light and medium duty vehicles, these components of the fleet provide a substantial amount of work to keep staff busy; and WHEREAS, on December 17, 2013, at the regularly scheduled meeting of the City Council, City staff and representatives from Enterprise Fleet Management presented an overview of services available through their leasing, maintenance, and fleet management programs. The presentation also included the results of a comprehensive fleet planning analysis for the City's light and medium duty vehicles (excluding Police Patrol vehicles), which compared the City's current fleet management program and expenses to establishing a 60-month lease and maintenance program through Enterprise Fleet Management for replacing and modernizing the fleet over a 10-year period; and WHEREAS, after discussion on the presentation, Council directed staff to return to Council with additional details on Enterprise Fleet Management's leasing, maintenance, and fleet management programs, provide a revised analysis after revisiting the fleet replacement schedule, and explore other opportunities for management and financing of the fleet; and WHEREAS, staff also assessed the option of purchasing new vehicles. While monthly payments and financing are comparable to leasing, vehicle purchases typically require a larger down payment, and will require a significant investment in staff time to manage these assets. In addition, extended maintenance programs are not typically offered by dealerships, and sending vehicles to local mechanics tends to be more expensive than servicing vehicles in- house. Therefore, City staff will have added pressure to regularly maintain these vehicles in order to ensure proper re -sale values; and WHEREAS, staff also reviewed similar leasing, maintenance, and fleet management contracts with other public agencies that resulted from competitive bidding processes. The results of staff's research indicates that Enterprise Fleet Management, as compared to other companies that competed for the contracts, offers a more comprehensive scope of services with flexible options, more cost-effective pricing and programs, and extensive experience and qualifications in fleet management; and WHEREAS, pursuant to Section 2.60.260 of the National City Municipal Code ("NCMC") regarding cooperative purchasing, the City has an opportunity to piggyback the West Contra Costa Unified School District's RFP Contract No. 1112-03 Vehicle Fleet Management Services with Enterprise Fleet Management, Inc., to establish a vehicle leasing, maintenance, and management program for National City's light and medium duty vehicle fleet, estimated at 74 vehicles over a 10-year period; and Resolution No. 2014 — 98 Page Three WHEREAS, NCMC Section 2.60.260 provides authority to the purchasing agent to join with other public jurisdictions to take advantage of cooperative purchasing opportunities, including but not limited to any federal, state or local agency pricing program or structure that is determined by the purchasing agent to allow a procurement that is in the best interests of the City. The purchasing agent may buy directly from a vendor at a price established through competitive bidding by another public agency whose procedures have been determined by the purchasing agent to be in substantial compliance with the City's procurement procedures, irrespective of the contracting limits of that jurisdiction or agency, even if the City had not initially joined with that public agency in the cooperative purchase; and WHEREAS, staff has confirmed that the West Contra Costa Unified School District's RFP Contract No.1112-03 Vehicle Fleet Management Services with Enterprise Fleet Management, Inc., was competitively bid through a Request for Proposals (RFP) process, and that the West Contra Costa Unified School District's procurement procedures are in substantial compliance with those of National City; and WHEREAS, the Open-ended, Equity Lease Program allows the City to move to a more efficient fleet profile and stay on a life -cycle plan, within the constraints of the City's limited capital budget, and provides leasing leverage with all rights of ownership, including flexible funding options and a strong resale market that can increase the City's equity. NOW, THEREFORE, BE IT RESOLVED that the City hereby authorizes the City to piggyback the West Contra Costa Unified School District's RFP Contract No. 1112-03 Vehicle Fleet Management Services with Enterprise Fleet Management, Inc., consistent with Section 2.60.260 of the National City Municipal Code regarding cooperative purchasing. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute the following agreements and corresponding documents to establish a vehicle leasing, maintenance, and management program for National City's light and medium duty vehicle fleet, estimated at 74 vehicles over a 10-year period: 1) Master Equity Lease Agreement with Enterprise FM Trust, including corresponding Amendment, Indemnity Agreement, Self - Insurance Addendum and Officer Certificate, 2) a Maintenance Agreement with Enterprise Fleet Management, Inc., including corresponding Amendment, and 3) a Service Agreement referencing the piggyback contract and establishing not to exceed amounts of $1,500,000 and $163,000 for the Lease and Maintenance Agreements, respectively. PASSED and ADOPTED this 17th day of June, 201 ATTEST: Mic ael R. Della, F'ty Clerk on Morrison, Mayor i / A ROVED AS TO FORM: ►7, :ia a Silva iiCity Atto Passed and adopted by the Council of the City of National City, California, on June 17, 2014 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California 2• ,%i p City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2014-98 of the City of National City, California, passed and adopted by the Council of said City on June 17, 2014. City Clerk of the City of National City, California By: Deputy