05.21.19 Regular Meeting - Laserfiche WebLink

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City Council Meeting Minutes May 21, 2019 The motion to approve carried by the following vote: For: 7 - Mayor Pro Tem Prewitt, Council Member Gonzales, Council Member Derrick, Mayor Hughson, Council Member Mihalkanin, Council Member Marquez and Council Member Rockeymoore Against: 0 12. Consider approval of Resolution 2019-91R, approving a contract with Enterprise Fleet Management, Inc. through the Interlocal Purchasing System, TIPS, for the lease of 49 light vehicles and the purchase of miscellaneous equipment for maintenance in the estimated amount of $2,000,000.00; authorizing the City Manager or his designee to execute the contract on behalf of the City; and declaring an effective date. A motion was made by Council Member Mihalkanin, seconded by Mayor Pro Tem Prewitt, to approve Resolution 2019-91R. Heather Hurlbert, Finance Director, addressed a question regarding leasing versus purchasing of fleet vehicles and possible savings through the program. Ms. Hurlbert stated that in 2014, the City began participating in a Fleet Management contract with Enterprise Fleet Management, Inc. for the leasing of vehicles. Enterprise presented a citywide fleet management proposal to staff after the successful leasing of the vehicles. The City has over one hundred fifty (150) light vehicles in the general fund and enterprise funds fleet and has faced budgetary challenges in replacing the vehicles according to the adopted replacement schedules. Through the Fleet Management program with Enterprise, light, non -pursuit rated vehicles are directly bought from the manufacturer at government pricing or better with all applicable rebates applied. A leasing factor is applied to the purchasing price and annual lease payments are set. The City will buy and install any aftermarket equipment and this equipment will not be included in the recurring annual lease amount but is included in the contracted amount with Enterprise. The vehicles will be replaced on a five-year schedule. At the conclusion of the lease, the vehicles are sold on the open market and the equity is rolled into the next five-year lease. It is not yet easy to provide the actual savings amount using the lease program because we have a new work order system. She hopes to have more information next year. All maintenance is included in the annual lease payment with the exception of tires and Enterprise contracts with local vendors for these services. By moving City of San Marcos Page 10