STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

City Manager and Financial Services Director request the City Council approve the Proposal received from Enterprise Fleet Management and authorize City Manager to execute all related agreements. 

The City’s current fleet is negatively impacting the overall budget and fleet operations.

Here are some statistics from the review of the current fleet conduction in preparation of this proposal:

• 44% of the light and medium duty fleet is currently 10 years or older.
• 35% of the light and medium duty fleet is 6 years or older.
• 10.3 years is the current average age of the fleet.
• 17 years-time it would take to cycle the entire fleet at current acquisition rates
• Older vehicles have higher fuel costs, maintenance costs and tend to be unreliable, causing increased downtime and loss of productivity.

By partnering with Enterprise Fleet Management, City of Coalinga will be better able to leverage its buying power, implement a tighter controlled resale program to lower total cost of ownership and in turn minimize operational spend.  The City will reduce fuel costs by 28% and reduce maintenance costs from $135 on average to $55.42 per unit.  Leveraging an open-end lease maximizes cash flow and recognizes equity from vehicles sold creating an internal replacement fund.  Furthermore, the City will leverage Enterprise Fleet Management’s ability to sell vehicles at an average of 109% above Black Book value. 

44% of all vehicles are older than 10 years of age and do not contain the most up to date safety features, such as electronic stability control, airbag standardization and anti-lock brake control.

The City will have a dedicated, local team to proactively manage and develop the fleet while delivering the highest level of customer service to facilitate the day-today needs. 

Not approve the program.