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6-12-23 Fleet Vehicle Lease Program

Bellflower City Council
June 12, 2023

Document
6-12-23 Fleet Vehicle Lease Program
Meeting
June 12, 2023
Body
Bellflower City Council
Pages
6
Original file
2 KB
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FLEET VEHICLE

MANAGEMENT PROGRAM

CITY OF BELLFLOWER

1 Existing Fleet Overview
Currently, the City’s fleet of light and medium duty vehicles totals 46 units assigned to various departments used for critical daily operations 26 of these vehicles are over 15 years in age with a handful of them over or near 100,000 miles 1 unit pre-dates 1998 air-bag standards
21 units pre-date 2007 anti-lock brake standards
The majority of the fleet is aged to the point that, in many cases, the annual cost of maintaining an aged unit exceeds it salvage value

2 3

Vehicle Purchase & Surplus Process
The City’s current purchase process of vehicles is done through a standard RFP Staff defines the type of vehicle needed and develops vehicle specifications which are then sent to local dealerships for pricing With City Council approval, the lowest bid is awarded to the respective dealer.

The order is subsequently placed and delivery date is estimated.

Delivery dates can be extremely long (in excess of a year) as vehicle inventory continues to be limited post-covid Units are surplused through a third party auction service at the end of their useful life – typically around 18 years

4 Recent Vehicle Surplus History

5 Vehicle Replacement Program
For the past several months ,staff has researched options to improve the status quo of vehicle acquisition as factors such as high vehicle pricing, lack of vehicle availability & long delivery times can be arduous at times.

A review of fleet replacement programs in surrounding cities revealed that several cities have adopted a vehicle lease program in the last few years including Downey, Norwalk, Paramount & Lynwood.

Their programs have resulted in substantial cost savings while allowing them to benefit from the use of vehicles, generally less than 3 to 4 years which contributes to reduction in fuel and maintenance costs.

These cities have successfully partnered with Enterprise Fleet Management Inc.

Staff has spent several months meeting with Enterprise to develop a pilot program as well as a long-term replacement program for Bellflower.

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