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Home My WebLink AboutPR 23034: REPLACE 36 VARIOUS LEASE VEHICLES WITH ENTERPRISE FLEET MANAGEMENT, INC. , ,, ,,, City of `°I ik t\ i —ort rthu Tecas www.PortArthurTx.cov INTEROFFICE MEMORANDUM Date: March 6, 2023 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Kandy Daniel, Director of Finance RE: P. R.No. 23034 Introduction: The intent of this Council Agenda Item is to seek the City Council's approval authorizing the City Manager to replace 36 vehicles during the 2022-23 fiscal year under the existing master equity lease agreement with Enterprise Fleet Management, Inc. Background: On September 21, 2021, the City Council approved resolution 21-383 authorizing the execution of a master equity lease agreement with Enterprise Fleet Management, Inc, and for the replacement of 31 vehicles for various City Departments under the lease agreement. The FY2022-23 Budget, included 36 vehicles to be leased under the program for various departments. A list of the vehicles along with lease, maintenance and after-market quotes is shown in Exhibit A and includes 15 police vehicles, 1 for IT, 3 for fire, 3 for Development Services, 6 for Public Works and 8 for Water Utilities. The lease program payments do not begin until the vehicles have been delivered and put into service. Due to the uncertainty of the auto industry and the long wait time on orders, some of the vehicles authorized in FY22 were not received until FY23. A lease payments analysis is shown in exhibit A which reflects the current and future forecast of lease payments due for years FY23 through FY28. The individual lease terms of the vehicles range from 24 to 48 months. The estimated amount due for FY23 is $474,183 and reflects the cumulative payment due for the 31 vehicles leased in FY22 as well as the 36 vehicles requested for FY23. Budget Impact: The total estimated cost of the program in FY23 is $474,183. $253,816 was included for leases in the FY23 Budget in the Capital Reserve Fund account no. 625-00-000-8492-00-00-000. A budget amendment is pending on this agenda to increase the budget by $220,367 to appropriate "Remember. we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 City of ort rtl:u�— Thus www.PortArthurTx.gov the additional amount needed. There will be no effect on fund balance since some of the vehicles were not received until this fiscal year and $243,124 remains unspent from the FY22 budget. Recommendation: It is recommended that the City Council approve P.R.No.23034 and authorize the City Manager to replace 36 vehicles during the 2022-23 fiscal year under the existing master equity lease agreement with Enterprise Fleet Management, Inc. "Remember, we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R.NO.23034 3/6/2022 KD RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO REPLACE THIRTY- SIX VEHICLES FOR VARIOUS CITY DEPARTMENTS UNDER THE EXISTING MASTER EQUITY LEASE AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT, INC. WITH A TOTAL ESTIMATED COST FOR THE LEASE PROGRAM OF $474,183 FOR FISCAL YEAR 2023. WHEREAS, on September 21, 2021,the City Council approved Resolution 21-383 authorizing the execution of a master equity lease agreement between the City of Port Arthur and Enterprise Fleet Management, Inc for the replacement of vehicles and equipment under a lease program, including the replacement of thirty-one (31) vehicles during FY2022, and WHEREAS,thirty-six(36)vehicles are requested to be secured through the lease program for FY2023,and WHEREAS, the vehicles requested to be secured through the lease program are essential for the City of Port Arthur,Texas to perform it governmental functions;and WHEREAS, the individual lease terms of the vehicles range from twenty-four (24) to forty-eight (48) months, and WHEREAS, funds will be available in the Capital Reserve Fund account number 625-00-000-8492-00-00-000, pending a budget amendment via PO 7127 to increase the budget by$220,367 to appropriate the additional amount; and WHEREAS, the City of Port Arthur expressly disavows any intent to obligate the municipality to monetary or financial obligations beyond one budgeted year. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager to replace thirty-six (36) vehicles during the 2022-2023 fiscal year under the existing master equity lease agreement between the City of Port Arthur and Enterprise Fleet Management, Inc. Section 3. That approval of this Resolution shall be contingent upon the approval of a budget amendment via adoption of Proposed Ordinance 7127. READ, ADOPTED AND APPROVED THIS day of , A.D., 2023, at a Regular Meeting of the City Council of the City of Port Arthur, by the following vote: AYES:(Mayor) Councilmembers: NOES: Thurman Bill Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Val Tizeno, Esq., City Attorney APPROVED FOR ADMINISTRATION: Ron Burton, City Manager APPROVED AS TO AVAILABILITY OF FUNDS: Kandy Daniel, Director of Finance EXHIBIT "A" FY2O21-2022 Vehicle Lease Payment Analysis Exhibit "A" FUTURE FORECAST Lease Payments Full Maintenace AME Cost Total Spend FY23 SPEND * $367,108.07 $7,611.64 $99,463.08 $474,182.79 FY24 SPEND $591,670.00 $16,927.92 $74,740.77 $683,338.69 FY25 SPEND-EST $591,670.00 $16,928.92 $0.00 $608,598.92 FY26 SPEND-EST $591,670.00 $16,929.92 $0.00 $608,599.92 FY27 SPEND-EST $591,670.00 $0.00 $0.00 $591,670.00 FY28 SPEND-EST $591,670.00 $0.00 $0.00 $591,670.00 *Includes current leased units and esitmated payments of vehicles yet to be delivered City of Port Arthur PORT ARTHUR 1 1 Menu Pricing enterprise TEXAS FLEET MANAGEMENT I Equity Lease Menu Pricing Total Monthly Cost One time Estimated Annual Monthly Cost Full Year Make Model Department Quantity Term Including After Market Aftermarket Cost Mileage (Lease Rater Maintenace"' Maintenace (By Quantity) •o ice 2023 Chevy Tahoe Police 1 48 25,000 51,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlasherSvstem Police 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, 67,413.59 FlasttPproliceSvstem 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlaatlpoffficerSvstem P 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlashPo lcerSvestem. 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 Flash police r5vstem 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, 67,413.59 FlasherSvscetem -offi 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, 67,413.59 Flash)rSvstem. ofnce 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 51,179.92 $0.00 Equipment, $7,413.59 FlasheolirSvscetem. P 2023 Chevy Tahoe Police 1 48 25.000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlasttgrSvstem. PPofhce 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlasterSvstem. Po ice 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlasherSvstem. o lce 2023 Chevy Tahoe Police 1 48 25,000 51,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlashPPolficcerSvstem 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, 57,413.59 FlasherSvstem. Police 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlasherSvstem. PPolhce 2023 Chevy Tahoe Police 1 48 25,000 $1,179.92 $1,179.92 $0.00 Equipment, $7,413.59 FlasherSvstem. 2024 Dodge Durango IT 1 48 25,000 $1,162.51 $1,077.51 $85.00 Emergency 2024 Chevrolet 2500 Fire 1 24 12,000 $1,396.95 $1,396.95 $0.00 Response 610,500.00 EEauioment mergency 2024 Chevrolet 2500 Fire 1 24 12,000 $1,396.95 $1,396.95 $0.00 Response $10,500.00 Eauioment Emergency 2023 RAM 1500 Fire-Gaming 1 48 25,000 $849.25 $849.25 $0.00 Response $10,500.00 Eauioment 2023 RAM 1500 Dev SVC• 1 48 25,000 $898.29 $849.25 $49.04 Animal C 2023 RAM 1500 Dev SVC- 1 48 25,000 $898.29 $849.25 $49.04 Environ Hlth 2023 RAM 1500 Dev SVC• 1 48 25,000 5898.29 $849.25 $49.04 Inspection 2024 Ford Maverick Public Works- 1 48 25,000 $642.98 $558.27 $84.71 Admin 2024 Ford F-250 Public Works- 1 24 25,000 $1,150.71 $1,098.76 $51.95 Streets 2024 Ford F-250 Public Works- 1 24 25,000 $1,150.71 $1,098.76 $51.95 Streets 2024 Chevrolet 2500 Public Works- 1 24 12,000 $1,412.27 51,362.27 $50.00 Service Body $10,500.00 Drainage 2024 Chevrolet 2500 Public Works- 1 24 12,000 $1,412.27 $1,362.27 $50.00 Service Body 510,500.00 Drainage 2024 Chevrolet 2500 Public Works- 1 24 12,000 $1,412.27 $1,362.27 $50.00 Service Body $10,500.00 Drainage City of Port Arthur PORT ARTHUR Menu Pricing enterprise - TEXAS FLEET MANAGEMENT I Equity Lease Menu Pricing Total Monthly Cost One time Estimated Annual Monthly Cost Full Year Make Model Department Quantity Term Mileage Including (Lease Rate)' Maintenace" After Market Aftermarket Cost Maintenace (By Quantity) "a er- 2023 RAM 1500 Customer 1 48 25,000 $898.29 $849.25 $49.04 "a er- - 2023 RAM 1500 Customer 1 48 25,000 $898.29 $849.25 $49.04 "a er- 2023 RAM 1500 Customer 1 48 25,000 $898.29 $849.25 $49.04 2023 RAM 1500 Water- 1 48 25,000 $898.29 $849.25 $49.04 Distribution 2023 RAM 1500 Water-WW 1 48 25,000 $898.29 $849.25 $49.04 Convey 2024 Ford F-350 Water-WW 1 60 20,000 $1,005.30 $938.62 $66.68 Convey 2023 RAM 1500 Water-WW 1 48 25,000 $898.29 $849.25 $49.04 Convey 2023 RAM 1500 Water-WW 1 48 25,000 $898.29 $849.25 $49.04 Convey 36 $39,673.87 $38,693.18 $980.69 $174,203.85 Lease rates are based upon factory order pricing and miles per year Pricing does not include expected return on equity at end of lease