HomeMy Public PortalAbout11) 7H Second Amendment to Enterprise Vehicle Lease and Maintenance AgreementDATE:
TO:
FROM :
Administrative Services Department
MEMORANDUM
May 21 , 2019
The Honorable City Council
Bryan Cook , City Manager
By: Susan Paragas , Administrative Services Director
AGENDA
ITEM ?.H.
SUBJECT: SECOND AMENDMENT TO ENTERPRISE VEHICLE LEASE AND
MAINTENANCE AGREEMENT
RECOMMENDATION:
The City Council is requested to :
1. Approve the second amendment to the Enterprise Vehicle Lease and
Maintenance Agreement (Second Amendment);
2 . Authorize City Manage r to sign and execute the Second Amendment (Attachment
"A"); and
3 . Approve down payment of $60,000 from the A ir Quality Management District
("AQMD") reserve fund for three (3) plug-in hybrids ("PIH ").
BACKGROUND :
On May 19 , 2015, the City Council approved a vehicle lease and maintenance program
agreement ("Agreement") with Enterprise FM Trust that acquired all City vehicles under
a lease program to allow cost savings in maintenance and ease of administration of a
vehicle fleet , thus , ensu ring that the City's veh icle operations are effective and cost
efficient.
The City received credit for the older vehi cles as trade-ins and made an up-front
payment for a l l of the after-ma rket equipment, thus , allowed for the lower monthly lease
rates .
On April 16 , 2019 , the City Council approved a first amendment ("First Amendment") to
the Agreement that replaced six (6) current leased veh icles and added two (2) new
leased vehicles to replace the Parking Enforcement vehicles leased through the Los
Angeles Sheriffs Department.
City Council
May21 ,2019
Page 2 of 3
ANALYSIS :
The Agreement , with the First Amendment , total 22 leased vehicles utilized by several
departments in the City . It is recommended that eight (8) of the 22 vehicles be replaced
by newer vehicles where a total of three (3) veh icles are energy efficient PIH . Two of
the 3 new PIH are replacing gasoline vehicles , thus , inc reasing the total leased PIH
vehicles from 8 to 10 .
The 8 vehicles to be replaced currently have a trade-in equity of $36 ,530 . However, the
equity will be reduced by approximately 50 % if the vehicles are turned in next year, at
the end of their term. To take advantage of the current equity, it is recommended that
the Agreement be amended with 8 new vehi cle replacements .
Therefore , the Second Amendment (Attachment "A ") revises the Agreement with 8
replacement vehicles. These 8 new vehicles will have a term of 60 months effective on
the date they are delivered to the City . Exhibit A in Attachment A contains the details of
the replacements and the City 's fleet. Included in the monthly payments fo r the 8
proposed vehicles are the costs of $59 ,303 for the after-market equipment needed to
make the new vehicles fully functional for City needs .
Below is the summary of Attachment "A ":
AQMDFund
• Total of 3 Hybrid Vehicles
• Down Payment of $60 ,000 for 3 New PIH Veh icles-from AQMD Fund of
$72 ,700 Available Reserves
• Total New Monthly Lease Payment for the 3 PIH is $1 ,126 ($13 ,514
Annually)
o Addition of $888 per month ($1 0 ,651 Annually);
o After-Market Equipment Costs of New Vehicles Not Qualified
o Within Annual AQMD Allocation
General Fund
• Total of four (4) Vehicles
• No Down Payment on New Veh icles
• Total New Monthly Lease Payment is $2,876 ($34 ,516 Annually )
o Reduction of $268 per month (-$3 ,216 Annually);
o After-Market Equipment Costs of $52 ,607 Included in
Monthly Payment
City Council
May21 ,2019
Page 3 of 3
Lighting and Landscape District Fund
• Total of One (1) Vehicle Replacement
• No Down Payment on New Vehicles
• Total New Monthly Lease Payment is $588 ($7,058 Annually )
o Increase of $148 per month ($1 ,781 Annually)
o After-Market Equipment Costs of $6,246 Included in Monthly
Payment
The total proposed monthly lease payment for the 8 veh icles is $4 ,591 ($5 5,089
annually) which is an increase of $1 ,208 per month ($14 ,493 annually). The month ly
payments include the costs of the new vehicles , their after-market equipment and the
factoring of the trade-in equity.
It is recommended that the Second Amendment be approved to provide :
1. Use of Higher Trade-In Equity;
2. Savings to General Fund ;
3 . Lease of Newer Vehicles ; and
4 . Increase Use of Energy Efficient Vehicles
CITY STRATEGIC GOALS:
Approving the First Amendment is consistent with City Strategic Goals of Pub lic Health
and Safety, Quality of Life, Sustainable Infrastru cture , and Fiscal Sustainability .
FISCAL IMPACT:
There will be no fiscal impact to the FY 2018 -2019 budgets with regards to the new
monthly lease payments . These payments will be included in the FY 2019-2020 budget.
However, only the up-front costs of $60 ,000 will be charged to the current AQMD
reserves in FY 2018-2019 .
ATTACHMENT :
A. Second Amendment to Master Equity Leas e Agreement
ATTACHMENT A
FIRST AMEN DMENT TO THE MASTER EQUI TY LEASE AGREEMENT
by and b etween
the
CITY O F TEMPLE CITY
and
ENTERPRISE FLEET MANAGEMENT
Dated May 2 1, 20 19
ATTACHMENT A
SECOND AMENDMENT TO THE MASTER EQUITY LEASE AGREEMENT
This Second Amendment to the Master Equity Lease Agreement ("Second Amendment"),
which is dated for refer ence as indicated o n the cover page, is hereby entered into by and between
the CITY OF TEMPLE CITY, a California charter city ("C ity"), and Enterprise Fleet
Management Trust, a Delaware statutor y trust ("Lessee"), as follows :
RECITALS
A. On May 19 , 20 15 , the City Counc il authorize the City Manager to enter into a Master
Equity Lease Agreement ("Agreement) with the Lessee and related addendums (Exhibit
"A") for a vehicl e lease and maintenance program.
B. On April 16 , 2019, the City Council authori zed the City Manager to enter into the First
Amendment to replace six (6) of the o ri ginally leased veh icles and add two (2) new vehicles
for a total fleet of 22 leased veh icl es.
C. On May 21 , 20 19, the City Counci l authorize d the City Manager to enter into the Second
Amendment to replac e eight (8) of th e originall y leased vehicles and maintain the total fleet
of 22 leased vehicles.
OPERATIVE PROVISIONS
NOW, THEREFORE, in cons ideration of the promises made and recited herein, the
parties do hereby enter into thjs Second Amendment, which modifies and amends the Agreement
as follows:
1. AMENDMENT . The Agreement i s hereby modified and amended as follows:
SECTION 1. LEASE OF VEHICLES: The schedule of vehicles i s replaced by Ex hibit B
as attached to this Second Amendment.
SECTION 3. RENT AND OTHER CHARGES: Exrubit B contains details regardin g the
detailed costs of the ne w leased vehicles with the revised monthly payments li sted in the
"New Monthly Payment" column.
2. GENERAL PROVISIONS.
2.1 Remainder Unchanged. Except specifically modified and amended in tills Second
Amendment and the First amendment, the Agreement remains in full for ce and effect and binding
upon the parties.
2.2 Integration. This Second Am endment consists of pages 1 to page 5 inclusive with
Exhibit A, which constitute the entire understanding and agreement of the parties and supersedes
Pa ge 2 of5
ATTACHMENT A
all negotiation s o r pr evious agreements between the parties with respect to all o r any part of the
transaction di scussed in thi s Second Amendment.
2.3 Effective Date. This Second Amendment is effective on the date it has been forma lly
approved by the City Council and executed by the appro priate authorities of the C ity and Lessee.
2.4 Ap plicab le Law. The laws of the State of California shall govern the interpretation
and enforcement of thi s Seco nd Amendment.
2.5 Refe rences. All references to the Agreement include all thei r resp ective terms and
provisions. All defined terms utilized in th is Seco nd Amendment have the same meaning as
p rov id ed in the Agreement, unl ess express ly s tated t o the contrary in this Second Agreement.
IN WITNESS WHEREOF, the parties hereto have executed t hi s Second Amendment to
the Agreement o n the date and year first wri tten above.
C ITY:
T H E CITY OF TEMPL E CITY
By : __________________________ __
Bry an Cook, City Manager
ATTEST:
Peggy Kuo , Ci ty C le rk
APPROVED AS TO FORM
Greg Murphy, C ity Attorney
LESSEE:
E nterpri se Fleet Management Tru st
By: ________________________ __
Name: -----------------------
T itle: -----------------------
Page 3 of5
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CURRENT VEHICLES REPLACEMENT VEHICLES
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Monthly Market Down Payment· New Monthy Payment·
Department Current Vehicle Year Make Current Vehicle Payment Proposed Vehicle Year Make Equipment Payment * General Fund Payment·llD AQMD
1 COD-Maintenance 2009ZW F-250 2016 Ford F·250 $430.05 F-250 (box delete) 2019 Ford $12,705.00 $705.01 $0.00 $0.00
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2 COD-Maintenan ce 2009ZX F-250 2016 Ford F·250 $430.05 F-250 (box delete) 2020 Ford $12,705.00 $703.39 $0.00 $0.00
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3 COD-Maintenance 200A01 F-250 2016 Ford F·250 $430.05 F-250 (box delete) 2019 Ford $12,705.00 $703.19 $0.00 $0.00
4 COD-Maintenance 2226DC F-350 Chassis 2016 Ford F· 350 Chass1s $498.52 F-350 Cha ssis 2019 Ford $14,492 .00 $764.77 $0.00 $0.00
5 P&R·Maintenance 200A02 F·250 2016 Ford F·250 $439.82 F-250 8ft bed 2019 Ford $6,245.89 $0.00 $588.20 $0.00
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6 P&R·Recreation 200FPR Transi t ·150 2016 Ford T ransit-150 $459.50 Pacifica Plug-In Hybrid 2019 Chrysler $150.00 $20,000.()( $0.00 $0.00 $373.15
7 P&R·Recreation 200FPT Transit-150 2016 Ford Transit-150 $456.37 Pacifica Plug-In Hybrid 2019 Chrysler $150.00 $20,000.()( $0.00 $0.00 $381.29
8 P&R·Recreat1on 2009JF H~hlander Hybrid 2015 Toyota H~hlander Hybrid $238.57 Pacifica Plug-In Hybrid 2019 Chrysler $150.00 $20,000.()( $0.00 $0.00 $371.71
"" < TOTAl MONTHlY lEASE PAYMENT-CURRENT $3,382 .93 TOTAl COSTS $59,302.89 $60,000.00 $2 ,876.36 $588.20 $1,126.15
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AQMD Fund-Current AQMD $238.57 AQMD Fund-Proposed $0.00 $60,000.00 $0.00 $0.00 $1 ,126.15
General Fund-Current GF $2,704.54 General Fund-Proposed $59,302.89 $0.00 $2 ,876.36 $0.00 $0.00
llD.Current GF $439.82 llD·Proposed $0.()( $0.00 $0.00 $588.20 $0.00
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CURRENT VEHICLES
Department Current Vehicle Year Make
1 COD-Building 2009JX C-Max Hybrid 2016 Ford
2 CDD -Comm Preserv. 200A74 Frontier 2016 Nissan
3 CDD -Comm Preserv. 200A77 Frontier 2016 Niss an
4 COD Matntenance 2009ZW F-250 2016 Ford
5 COD-Mainten ance 2009ZX F-250 2016 Ford
6 COD-Maintenance 200A01 F-250 2016 Ford
7 COO -Matntenance 22260C F-350 Cha ssis 2016 Ford
8 COD -Planning 2009JW C-Max Hybrid 2016 Ford
9 Management Services 2009N C-Max Hybrid 2016 Ford
10 MS·Public Safety 2009JG Highlander Hybrid 2015 Toyota
11 MS-Public Safety Tauru s• 2015 Ford
12 MS-Public Safety Tauru s• 2015 Ford
13 P&R-Maintenance 222l6K F-150 2016 Ford
14 P&R-Maintenance 200A02 F-250 2016 Ford
15 P&R-Maintenance 200FPW Trans it-250 2016 Ford
16 P&R -Park Patrol 2009JC Highlander Hybrid 2015 Toyota
17 P&R-Recreation 222L6Q F-150 2016 Ford
18 P&R -Recreation 200FPR Transtt 150 2016 Ford
19 P&R -Recreatton 200FPT Transtt ·150 2016 Ford
20 P&R Recrea tion 2009JF Highlander Hybnd 2015 Toyota
21 P&R -Recreation 2009JI Highlander Hybrid 2015 Toyota
22 P&R -Tree Crew 2226DA F-650Ga s 2016 Ford
TOTAL MONTHLY LEASE PAYMENT-CURRENT
AQMO Fund-current
General Fund -Current
LLO-Curr ent
TOTAL IIIIJNTH..Y LEASE PAYIIIENT~
•J..eosed through Las Angeles Callly Sheriffs
ENTERPRISE FlEET MANAGEIVENT -REPl.ACEJVENTVEHa.ES
SUMVIARY
REPLACEMENT VEHICLES
Current Cost of Alter
Monthly Market
Current Vehicle Payment Proposed Vehicle Year Make Equ ipm ent
C-Max Hybrid $80 .99 F-15o• 2019 Ford $1 ,601.00
Frontier $387 .55 No Chonge
Frontier $387 .5 5 No Chonge
F 250 $430 .05 F-250 (box delete) 2019 Ford $12 ,705 .00
F-250 $430 .05 F-250 (box delete) 2020 Ford $12 ,705 .00
F-250 $430.0 5 F-250 (box delete) 2019 Ford $12 ,705 .00
F-350 Chassis $498 .52 F-350 Chassis 2019 Ford $14,492 .00
C-Max Hybrid $232.26 lon iq P/uq -ln Hybrid • 2020 Hyundoi $150.00
C-Max Hybrid $232.26 lonjq Plug -In Hybrid • 2020 Hyundai $150.00
Hig hlander Hybrid $233.90 Police Interceptor Plug -In Hybrid • 2020 Ford $5,376.76
Tauru s $558.33 Responder Plug-In Hybrid • 1019 Ford $14,991.74
Tauru s $558.33 Responder Pluq -ln Hybrid • 1019 Ford $14,992.74
F-150 $466.32 No Change
F-250 $439.82 F-250 8ft bed 2019 Ford $6,245.89
Tran sit -250 $463 .00 No Change
Hig hlander Hybrid $238.57 Crosstreck Plug -In Hybrid• 1019 Subaru $1,601 .00
F-150 $466.32 No Change
Transit 150 $459.50 Pacifica Plug -In Hybrid 2019 Chrysler $150.00
Tran stt -150 $456.37 Pacifica Plug -In Hybrid 2019 Chrysler $150.00
Highlander Hybnd $238.57 Pacifica Plug-In Hybrid 2019 Chrysler $150.00
Highlander Hybrid $239.91 Cross treck Plug -In Hybrid • 1010 Suboru $1,601 .00
F-650 Gas $874.54 No Chonge
$8,802 .76 TOTAL COSTS $99,768.13
AQMD $1,496 .46 AQMO Fund-Propo sed $0 .00
GF $5,525 .62 General Fund -Propo sed $99,768 .13
GF $1,780 .68 llO-Proposed so .oo
$8,802.76 TOTAL IIIIJNTH..Y LEASE PAYI\IENT-PflOPOSFI I $10,390.89
"ApptrNed 1¥ Oty Council on /lpri/1& 2019
N!w/Current
Monthy
Down Payment -
Paym ent .. General Fund
$0.00 $446.56
$0 .00 $387 .55
$0 .00 $387 .55
$705 .01
$703 .39
$703 .19
$764 .77
$20,000.00 $2.76
$20,000.00 $1.76
$10,000.00 $97.21
$10,000.00 $175.13
$10,000.00 $175.13
$0 .00 $0 .00
$0 .00
$0.00 $463.00
$10,000.00 $29.38
$0.00 $466.32
$20,000.00 $0 .00
$20,000.00 $0.00
$20,000.00 $0.00
$10,000.00 $19.38
$0.00 $0.00
$200,000.00 $5,739.09
$200,000.00 $0.00
$0.00 $5,739.09
$0.00 $0.00
••fncJudes 9.5%Scles TCilr
New/Curren t
Monthy
Payment -LLD
$0.00
$0 .00
$0 .00
$0.00
$0.00
$0 .00
$0 .00
$0.00
$0.00
$0.00
$0.00
$0.00
$466.32
$588.20
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$874.54
$1,929.06
$0.00
$0.00
$1,929.06
New/Current
Monthy
Payment -
AQMD
$0.00
$0.00
$0.00
$0 .00
$0 .00
$0.00
$0.00
$58.40
$58.40
$417.87
$23 6.61
$236.61
$0.00
$0.00
$0.00
$194.35
$0 .00
$373.15
$381.29
$371.71
$294.35
$0.00
$2 ,722 .74
$2,722 .74
$0.00
$0.00
.,.,
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