To: Board of Supervisors
From: Sheriff
Agenda Section: Consent
SUBJECT:
title
Contract with Enterprise Fleet Management Services
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve and authorize the Chair to sign the Government Credit Application (attachment 1), the WEX Enterprise Fleet Management Application (attachment 2), the Master Equity Lease Agreement (attachment 3), the Amendment to Master Equity Lease Agreement (attachment 4), Indemnity Agreement (attachment 5), the Schedules for 2 motor vehicles (attachment 6 and 7), the Maintenance Management and Fleet Rental Agreement (attachment 8), and the Amendment to Maintenance Management and Fleet Rental Agreement (attachment 9) between the County of Humboldt and Enterprise Fleet Management;
2. Authorize the Sheriff, Undersheriff or Deputy Director Sheriff’s Administration to execute and deliver any additional Schedules to the Lease for individual motor vehicles to be added to the lease, along with any other necessary documents in connection with those Schedules; and
3. Authorize the Sheriff, Undersheriff or Deputy Director Sheriff’s Administration to add additional vehicles to the Maintenance Management and Fleet Rental Agreement and the WEX Enterprise Fleet Management for the purposes of maintenance management and gas cards in the event additional Enterprise leased vehicles are added to the fleet.
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SOURCE OF FUNDING:
Grant Funds and General Fund
DISCUSSION:
The Humboldt County Sheriff’s Office (HCSO) seeks to partner with Enterprise Fleet Management to lease vehicles for a temporary term as needed. HCSO is the recipient of a Prop 64 grant that funds additional positions that will require vehicles. These positions are only guaranteed for the grant term, so purchasing permanent vehicles through Motor Pool is not recommended. Allowing these limited duration personnel to use vehicles from the existing fleet is not possible due to resource constraints. This Master Lease Agreement will make possible the temporary addition of vehicles for situations such as these. Enterprise handles the procurement and upfitting of each vehicle, providing a road-ready product that includes features necessary to law enforcement such as lights and sirens. An Enterprise fleet manager is assigned at no additional cost to ensure that the project is on-track and meets client needs. HCSO is able to add vehicles at any time as the need arises. Currently Motor Pool only purchases vehicles annually which is another reason why it’s not a recommended path for temporary grant funded vehicles. Provided this program works well for the grant funded vehicles, HCSO intends to lease vehicles for the contract city patrol or any other short-term, contract, or grant funded purpose.
Since the vehicles are not owned by the county, Motor Pool will not service or maintain the vehicles. HCSO has opted to add the Maintenance Management plan with Enterprise for $10.00 per month per vehicle. A plan manager is assigned to remind HCSO when maintenance is required and will help coordinate the maintenance appointments using Enterprises’ network of local repair shops. Enterprise directly pays the local repair shops to ensure that correct pricing and manufacturer’s specifications are used and then bills HCSO on a monthly basis for the cost of the maintenance and/or repairs. Additionally, HCSO has opted to acquire gas cards for these vehicles through the WEX Enterprise partnership so that county motor pool is not burdened with any administrative costs to fuel vehicles leased from Enterprise.
The Enterprise Fleet Management Services contract is a Sourcewell awarded contract #060618-EFM. The county is a member of Sourcewell and has used cooperative purchasing agreements in the past as sole source. County Counsel and County Risk have reviewed the agreements; addendums were added as necessary per their requested revisions. In addition to County Counsel and Risk, HCSO advised County Human Resources, Public Works, Purchasing, Auditor Controller’s Office and the CAO’s office of their desire to use Enterprise leased vehicles. All these county stakeholders have approved HCSO moving forward with this relationship for grants, contract cities and other temporary assignments.
Local car dealerships do not offer a comparable program, but they may receive the Courtesy Delivery Fee for the shipment of their vehicles or provide preventative services or maintenance. Enterprise saves the department employee costs by obtaining quotes, handling licensing and registration, and working with manufacturers and aftermarket shops.
FINANCIAL IMPACT:
The costs will vary with the type of vehicle and the required upfitting. The program utilizes manufacturer-direct government and volume pricing discounts. At this time, only 2 vehicles are being requested, a 2021 Ford F-350 and a 2021 Ford Ranger along with all necessary after-market items to upfit to Sheriff Deputy and Community Service Officer specifications. See the schedules in attachment 4 and 5 for more detailed information about the two vehicles. Both vehicles are for a 36-month term. The capitalized amount of the Ford F-350 is $54,875.67 with a monthly lease cost plus tax of $1,787.29. The capitalized amount of the Ford Ranger is $34,761.67 with a monthly lease cost plus tax of $1,181.89.
HCSO has opted to add the maintenance management program for an additional $10.00 per month per vehicle and the WEX gas card for a one-time enrollment fee of $40.00 and a $2.00 per month per vehicle administrative fee. Actual cost of maintenance, repairs, and fuel will be the responsibility of HCSO.
All expenses associated with these 2 leased vehicles are budgeted in the 10-digit org key 1100-221960 Prop 64 Grant. There will be no impact to the general fund.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by facilitating public/private partnerships to solve problems, engaging new partners.
OTHER AGENCY INVOLVEMENT:
Enterprise Fleet Management
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to approve this contract however that would prevent grant-funded positions from having vehicle access.
ATTACHMENTS:
Attachment 1 - Government Credit Application
Attachment 2 - WEX Enterprise Fleet Management Application
Attachment 3 - Master Equity Lease Agreement and Addendums
Attachment 4 - Amendment to Master Equity Lease Agreement
Attachment 5 - Indemnity Agreement
Attachment 6 - Schedule for Ford F-350
Attachment 7 - Schedule for Ford Ranger
Attachment 8 - Maintenance Management and Fleet Rental Agreement
Attachment 9 - Amendment to Maintenance Management and Fleet Rental Agreement
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A
File No.: N/A