Title
Consider authorizing three years of fleet management services for light duty vehicles, in accordance with the approved Enterprise Fleet Management, Inc Master Lease Agreement, for a total amount not to exceed $765,000.
(Staff Presenting: Peter Vannerus)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
Authorize three years of fleet management services for light duty vehicles, in accordance with the approved Enterprise Fleet Management, Inc Master Lease Agreement, for a total amount not to exceed $765,000.
SUMMARY/DISCUSSION:
The Board of Directors approved a Master Lease Agreement with Enterprise Fleet Management, Inc. (EFM) to provide fleet management services, effective July 1, 2020. The purpose of the Master Lease Agreement is to support a program for the cyclical replacement of the Agency's aging fleet. Benefits of refreshing the Agency's fleet on a scheduled rotation has allowed for increased vehicle safety, reduced maintenance costs, reduced operational costs, and standardize annual capital outlay on Agency vehicles. Currently the Agency has 19 light vehicles in the program that are all on staggered 48-month lease cycles and plans to trade in 4-5 vehicles annually to be replaced with new vehicles, when the leases expire.
The cost of acquisition and management of the individual vehicles has been done through separate lease agreements/contracts for each vehicle, in compliance with the Master Lease Agreement. However, in absence of an authorization by the Board indicating a not-to-exceed amount for a specific timeframe, County's purchasing and payment processes require creation of a Multi-Year Agreement (MYA) and Delivery Order (DO) for individual vehicles, which has resulted in late payments whenever new lease vehicles are acquired.
In order to address the late billing issue, staff requests an authorization specifying continuation of the vehicle lease program with EFM for three years fo...
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