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HomeMy Public PortalAbout2022.314 (12-20-22)RESOLUTION NO. 2022.314 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD TO IMPLEMENT THE CITY'S VEHICLE REPLACEMENT AND MAINTENANCE PROGRAM, INCLUDING APPROVAL OF VARIOUS AGREEMENTS WITH ENTERPRISE FLEET MANAGEMENT, INC. FOR THE LEASE AND MAINTENANCE OF THE CITY'S VEHICLE FLEET WHEREAS, the City's light & medium duty white fleet includes 28 vehicles assigned to various departments. These vehicles range from SUVs to specialty trucks primarily utilized in City's Public Works Department; and WHEREAS, 64% of the City's fleet vehicles are over 10 years old and have not been replaced on a regular basis, causing the annual cost of maintenance of the aged units to exceed their salvage value. Excessive cost of maintenance due to the overall age and condition of the fleet does not provide opportunities to appropriately fund the City's Fleet Replacement Fund; and WHEREAS, the City staff researched various options to improve the status quo by implementing a viable "Vehicle Replacement and Maintenance Program"; and WHEREAS, Staff's analysis concludes that utilizing Enterprise Fleet Management, Inc. through their maintenance program, methodical vehicle replacement recommendations and Equity Municipal Leases instead of purchasing and outsourcing the administration & tracking will lower the City's Total Cost of Ownership by 1) significantly reducing annual Maintenance Costs; 2) significantly increasing vehicle resale returns; 3) reducing fuel spend by increasing fuel efficiency with newer vehicles that have better MPG performance & technology; and 4) reducing staff administrative time, improve vehicle safety, and improve vehicle emissions; and WHEREAS, representatives of Enterprise Fleet Management and staff put together a plan where the following parameters were established: 1) the City will establish a list of the vehicles marked for replacement; 2) reduce net operating costs, knowing that newer vehicles significantly lower maintenance expenses and that newer vehicles have increased fuel efficiency; 3) implement a viable vehicle replacement program with a proactive replacement cycle, depending on economic feasibility and vehicle market conditions; 4) City staff would identify the required specifications and types of replacement vehicles in order to "right type" the fleet for current job use; 5) lower the average age of the fleet knowing that 64% of the current light and medium duty vehicles are over ten (10) years old; two (2) out of 28 vehicles predate Anti -lock Brake standards, twenty-four (24) out of 28 vehicles pre -date back up camera standards, and seven (7) out of 28 vehicles predate Electronic Stability Control; and 1 WHEREAS, based on Staff's evaluation, the City concludes that by partnering with Enterprise Fleet Management the City will: lower its total costs towards the white fleet; reduce administrative time/costs; provide staff with safer vehicles that are equipped to meet their job application needs; and improve the fleets overall environmental emissions by undertaking this program and using a ten (10) year projected analysis, the City could save about $225,180 over 10 years; and WHEREAS, The City's Fiscal Year 2021-2022 budget includes funding for the proposed Vehicle Replacement and Maintenance Program; and WHEREAS, the City desires to enter into various agreements with Enterprise Fleet Management to implement the City's Vehicle Replacement and Maintenance Program; and WHEREAS, the City and Enterprise Fleet Management have agreed to modify Enterprise Fleet Management's contract templates in order to tailor provisions specific to the City's needs in the form of amendments to such template agreements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Lynwood ("City Council") hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution. Section 2. The City Council finds that for the reasons stated in the above recitals and corresponding Agenda Staff Report, that it is in the best interests of the City to implement the Vehicle Replacement and Maintenance Program. Section 3. In order to implement the Vehicle Replacement and Maintenance Program, the City Council hereby approves of the following agreements: 1) The Master Equity Lease Agreement and Amendment thereof between the City of Lynwood and Enterprise Fleet Management, Inc.; and 2) The Maintenance Agreement and Amendment thereof between the City of Lynwood and Enterprise Fleet Management, Inc.; and 3) The Maintenance Management and Fleet Rental Agreement and Amendment thereof between the City of Lynwood and Enterprise Fleet Management. Section 4. Authorize the City Manager to execute any ancillary agreements needed to implement the Vehicle Replacement and Maintenance Program in a form approved by the City Attorney, including any agreement necessary to authorize Enterprise Fleet Management to liquidate designated surplus vehicles on behalf of the City of Lynwood; 2 Section 5. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood. Section 6. The City Clerk shall certify to the adoption of this Resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED and ADOPTED this 20th day of December, 2022. Oscar Flores, Ma or ATTEST: Maria Quinonez, City Clerk Noel Tapia, City Attorney APPROVED AS TO FORM: APPROVED AS TO CONTENT: Julian Le , Director of Public Works 3 STATE OF CALIFORNIA ) )§ COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 20th day of December 2022. AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA, SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES NOES: NONE ABSENT: NONE ABSTAIN: NONE Maria Quinonez, City Clerk STATE OF CALIFORNIA ) )§ COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2022.314 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 20th day of December 2022. Maria Quinonez, City Clerk 4