HomeMy WebLinkAboutMINUTES - 03112014 - D.6RECOMMENDATION(S):
Acting as the Board of Directors of the Contra Costa County Fire Protection District:
1. APPROVE and AUTHORIZE the Fire Chief, to execute the Master Equity Lease Agreement, Amendment to
Master Equity Lease Agreement, and Self-Insurance Addendum to Master Equity Lease Agreement, with Enterprise
FM Trust, including modified indemnification language, in an amount not to exceed $1,750,000, for the leasing,
maintenance, and management of the Fire District's light vehicle fleet, for the period March 11, 2014 through March
10, 2019.
2. APPROVE and AUTHORIZE the Fire Chief, to execute a Maintenance Agreement, and Amendment to
Maintenance Agreement, with Enterprise Fleet Management, Inc., for the maintenance, and management of the Fire
District's light vehicle fleet leased under the Master Equity Lease Agreement, for the period March 11, 2014 through
March 10, 2019.
FISCAL IMPACT:
The estimated $275,000-$350,000
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/11/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Lewis Broschard,
925-941-3520
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: March 11, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
D.6
To:Contra Costa County Fire Protection District Board of Directors
From:Jeff Carman, Chief, Contra County Fire Protection District
Date:March 11, 2014
Contra
Costa
County
Subject:Light Vehicle Fleet Leasing, Maintenance, and Management Program
FISCAL IMPACT: (CONT'D)
annual cost of the proposed program at full implementation would be funded within the authorized operating
budget of the Fire District. Full implementation of the proposed program would result in estimated light vehicle
fleet maintenance savings of approximately $80,000 per year annually as well as provide predictable annual costs
to support, maintain, and replace the light vehicle fleet in subsequent years.
BACKGROUND:
The Fire District operates a fleet of approximately 80 light vehicles to fulfill its emergency response and support
functions including supply, maintenance, and facilities, as well as administration and fire prevention activities.
The fleet has been significantly reduced in size from over 100 light vehicles since 2010. Historically, the Fire
District purchased light vehicles and maintained them with private sector vendors. With very few exceptions,
there have been no purchases made or replacements scheduled to the aging light vehicle fleet since 2007. The
majority of our light vehicles are in excess of County replacement guidelines for age and/or mileage and are
presenting increased costs for operation, fuel, and unpredictable maintenance. Reliability of our emergency
response and support functions is compromised because of increased age and maintenance issues.
The management of the light vehicle fleet was coordinated and performed by a dedicated position that was
eliminated in 2010 due to budget cuts. This function is now performed by the Fire Marshal as an additional
adjunct duty.
The Fire District has researched several innovative programs in the public and private sector for the replacement,
maintenance, and management of our light vehicle fleet. Due to the quantity of vehicles needing replacement,
coupled with insufficient capital to meet this need, a long-term leasing strategy is proposed. The Enterprise
leasing program will provide acquisition of light vehicles with no initial capital outlay and manageable monthly
leasing costs. In addition, the Enterprise leasing program includes a maintenance program that will dramatically
reduce the District’s annual maintenance costs and eliminate unpredictable costs in the future. The Enterprise
maintenance program allows for flexibility and convenience in locating and selecting vendors for routine
maintenance.
The proposed Enterprise lease program includes a fleet management component with online fuel consumption
tracking, consultation on appropriate and economical vehicle selection based on anticipated needs and use, and
monitoring of maintenance programs and service intervals for compliance with the manufacturer’s recommended
service for each vehicle.
Under the Master Equity Lease Agreement (MELA), the District will select vehicles for lease under the MELA.
On or about the date of delivery of vehicles to District, the lessor (Enterprise FM Trust) will send District a
schedule covering each vehicle that will include, among other things, a description of the vehicle, the lease term
and the monthly rental and other payments due with respect to the vehicle. The terms contained in each schedule
are binding on District unless it objects in writing to a schedule within ten (10) days after the date of delivery of
the vehicle.
The District needs to use innovative programs to fulfill our operational and capital needs. The recent Fitch study
discussed funding capital, including fleet and infrastructure needs, as a high priority for the District. This program
allows the District to take advantage of a creative strategy for filling part of our overall capital needs. As part of
embracing innovative programs we are recommending the Enterprise leasing program for our light vehicle fleet.
This program has the lowest cost of operation, streamlined maintenance, online fuel consumption tracking,
increased reliability with reduced life cycles, and includes an active fleet management component.
CONSEQUENCE OF NEGATIVE ACTION:
Without replacement of many of the District's light vehicles, breakdowns will increase along with unplanned
maintenance costs. Reliability of the light vehicle fleet is low and critical emergency response supervision,
incident management, support services, and fire prevention activities that rely on light vehicle operation and
availability would be significantly impacted. Costs will continue to escalate for the operation and maintenance of
the light vehicle fleet.
CHILDREN'S IMPACT STATEMENT:
None.
CLERK'S ADDENDUM
Speakers: Bill Granados, Contra Costa County Fire Advisory Commission; Rollie Katz, Public Employees'
Union Local One.
ATTACHMENTS
Light Vehicle Fleet Cost Analysis
Contra Costa County Fire Protection District
Analysis of Light Vehicle Fleet
Procurement and Maintenance Costs
The Fire District researched three options for fulfilling our long-term light vehicle fleet
procurement, maintenance and management needs. The three options studied are
compared in the table below:
Traditional
Purchasing County ISF Enterprise Lease Program
Initial Capital Outlay $1,950,000 $1,950,000 None
Replacement Capital Outlay $1,950,000 None None
Maintenance $110,000 annually None $30,000 annually
Lease Payment None $314,736 annually $275,000 annually
Mileage Costs None $175,284 annually None
Replacement Term 10 yrs 10 yrs 5 yrs
Upfitting Same Same Same
Fuel Same Same Same
Estimated annual costs yr 1-5*$486,236.00 $926,256.00 $305,000.00
Estimated annual costs yr 5-9 $110,000.00 $490,020.00 $305,000.00
Estimated annual costs yr 10-15**$486,236.00 $490,020.00 $305,000.00
Total 15 year cost:$5,412,360.00 $9,531,480.00 $4,575,000.00
Fleet Turnover (in 15 years):Once Once Three times
*Initial capital outlay using a lease-purchase program for years 1-5 in the Traditional Purchasing and ISF model
**Replacement capital outlay using a lease-purchase program for years 10-15 in the Traditional Purchasing
model