Revised Joe Elliott, Councilor Cablecast Live on Comcast Channel 10 Ed Green, Councilor Sean Strode, Councilor Streamed Live at Riflenow.Org
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City of CITY COUNCIL Rifle AGENDA City Council City Hall Barbara Clifton, Mayor City Council Chambers Theresa Hamilton, Mayor Pro Tem 202 Railroad Avenue Joe Carpenter, Councilor Rifle, CO Brian Condie, Councilor Revised Joe Elliott, Councilor Cablecast Live on Comcast Channel 10 Ed Green, Councilor Sean Strode, Councilor Streamed Live at RifleNOW.org The City of Rifle will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call (970) 665-6405 for assistance. REGULAR MEETING May 20, 2020 WORKSHOP 6:00 P.M. CONFERENCE ROOM 6:00 p.m. Discuss leasing of City Vehicles through Enterprise Fleet Management (Brian Prunty) REGULAR MEETING 7:00 P.M. COUNCIL CHAMBERS The City Council may take action on any of the following agenda items as presented or modified prior to or during the meeting, and items necessary or convenient to effectuate the agenda items. 7:00 p.m. 1. Regular Meeting Call to Order, Pledge of Allegiance, and Roll Call 7:03 p.m. 2. Citizen Comments - for items not listed as public hearings on the agenda. Please limit comments to 3 minutes. Email comments prior to the meeting to: [email protected] or Electronic Meeting Participation: Please click the link below to join the webinar: Click here to join electronic meeting or (www.rifleco.org/ElectronicMeetings) Password: 929942 Participate by phone: Dial: 1 301 715 8592 or 1 312 626 6799 / Webinar ID: 416 406 740 7:10 p.m. 3. Consent Agenda – consider approving the following items: A. Minutes April 22, 2020 City Council Special Meeting B. (Acting as Liquor Licensing Authority) Liquor License Renewal for J&L Inc., dba Shanghai Garden and Ruedi Creek Enterprises, Inc. dba Sammy’s Rocky Mountain Steakhouse, Rifle Tequila’s, Inc. dba Tequila’s 7:15 p.m. 4. Action, if any, on Workshop Items (Mayor Clifton) 7:20 p.m. 5. Consider approving a contract with Enterprise Fleet Management for services related to the leasing of City Vehicles (Brian Prunty) . 7:40 p.m. 6. Consider amending Section 4-2-30 of the Rifle Municipal Code to Provide for the Collection of Taxes on Remote Sales – Ordinance No. 6, Series of 2020 – 2nd Reading (Jim Neu) 7. Consider amending Emergency Declaration authorizing temporary expansion of on premise Liquor Licensed businesses and issuance of Right- of-Way Use Permits – Resolution No.10,Series of 2020 (Jim Neu) 7:50 p.m. 8. Administrative Reports 8:05 p.m. 9. Comments from Mayor and Council The order and times of agenda items listed above are approximate and intended as a guideline for the City Council. Next Regular Meeting of Council: June 3, 2020 at 7:00 p.m. - 2 - public works interoffice memo To: Scott Hahn, City Manager From: Brian G. Prunty CC: Michelle Duran, Finance Director Date: May 12, 2020 Re: Leasing Program for Fleet Vehicles Early this year Michelle Duran and I were introduced to the notion of leasing for our fleet vehicle replacement. Personally, I had never considered it, as was the case for Michelle. Troy Richard, a sales representative for Enterprise Fleet Management provided a short introduction to what it could look like. It had appeal from a multitude of angles. Fleet management is an area in which we do not invest a lot of effort, but nevertheless requires thoughtful and timely consideration. Over the past year, I have invested more time and effort to fleet management, because it became apparent that this facet was overlooked. We have stepped up our Fleet Management by going all in our electronic record keeping with iWorQ, including an iWorQ module for requesting fleet service. The goal has been to be able to look at any vehicle at any time and get a sense of its condition and cost of ownership. For the purposes of this memo, we will only consider the light-duty wheeled vehicles of and 1-ton and lighter, or about 65 vehicles. Over the past six months I have gained a better picture of our fleet status and condition. This has been a combination of observation, user input, and data in our fleet management program (iWorQ). What has become apparent is that we have an aged fleet and our rate of replacement is slower than necessary to provide a reliable and safe fleet. To accomplish the goal of a newer and efficient fleet, I propose a plan of replacement using a Lease Program. In the following, I will lay out an overview of the plan, the proposed Fleet Management vendor, the Sourcewell connection, what funding looks like, the proposed vehicles for replacement, and disposal of replaced fleet vehicles. Ultimately, I ask for your recommendation to City Council to go forward with the plan and begin a steady push to upgrade our fleet. 1 | Page Memo – Scott Hahn May 12, 2020 The Fleet Replacement Management Plan (FRMP) With 65 vehicles in regular use, the challenge is to balance the replacement of the vehicles in an optimum way so as to minimize the cost of ownership while providing a modern, safe, and reliable fleet, which well represents the City of Rifle. I believe a fleet leasing plan can accomplish this goal. First, it provides for regular turnover of vehicles, which ensures reliability and ensures low mileage at time of replacement. Second, due in part to low mileage, it maximizes monies obtained from the sale of replaced vehicles. Third, it demonstrates fiscal responsibility by obtaining efficient, low maintenance, reliable and fuel-efficient vehicles. Fourth, it lowers the cost of maintenance since the fleet would be newer vehicles. Fifth, it provides the latest in equipment for driver safety. The highlights of the plan are as follows: a. Approximately 12 vehicles per year would be replaced. b. There would be a goal of replacing the entire fleet (with a handful of exceptions) every five years. c. Annually, at budget time departments can request replacement vehicles and plan for leasing costs. d. Vehicle maintenance (tires, brakes, fluid changes, etc.) costs would be maintained by the City. e. Each Fall at budget time, we would meet with the Fleet Management Vendor (FMV), to determine next year’s lease requirements. To achieve this plan, the following must occur: selection of a good fleet management vendor, having a solid approach to funding (mainly a consideration for this year), and diligent fleet management on the part of the Fleet Manager. The reality is that without a plan like what we have outlined above, we would not see complete fleet replacement for 16 years (estimated) while constantly supporting an ever-aging fleet. In this scenario and depending how aggressive we were in replacement; the average age of the fleet would certainly go up. Fleet Management Vendor The Fleet Management Vendor (FMV) choice for our program is Enterprise Fleet Management (EFM). Between Michelle Duran and me, we have spoken with four government agencies which utilize this vendor for their leasing requirements: Mesa County Sheriff Matt Lewis, Carl Christian – City of Fountain Electric Dept. Superintendent, Sheryl Carstens –City of Commerce City CFO, and Bill Sutter, Boulder Valley School District CFO. All have provided solid and high recommendations due to their experience with EFM. There are many reasons for my selection of them for our FMV: an excellent plan for implementation, a wide variety of services which can be selected on an annual basis, and they are is already under contract with Sourcewell for cooperative buying. 2 | Page Memo – Scott Hahn May 12, 2020 As to Sourcewell, prior to this connection I knew nothing about them. They are best described as the Purchasing Agent’s agent. They provide an alternative to the conventional bidding process, i.e. vetting the vendors, soliciting bids, evaluating proposals, and then negotiating a contract with a bidder. With Sourcewell, they have already gone through that process, leaving the agency with the specifics of what they want and issuing a Purchase Request. As a Sourcewell member, we have access to that work, and can secure a vendor (Enterprise Fleet Management, in this case) and have confidence that it conforms to national procurement standards. I know there is much to understand about using such an agency (they are actually a government agency of the State of Minnesota), but I have come to the conclusion it is a great way to expedite purchases. I have included information on EFM’s contract with Sourcewell and the assurance that we have indeed secured a competitive contract through Sourcewell. Funding Our current approach funding vehicles procurement is to have each department indicates their intent to acquire a vehicle(s) during the budget development. Money for these purchases is “borrowed” from the Fleet Capital Fund. It is then paid back to the Fund over four years. For example, if we were to purchase four vehicles at $30,000 each (approx. average), we would expend $120,000 per year. At that pace it would take 16 years for complete turnover of the light-wheeled fleet. With the lease program, the leasing company becomes the finance company and we would lease 12-14 vehicles per year for the same $120,000. In this scenario, we could turn over the entire fleet in 5 years ±. Departments would budget for their lease payments every year, which creates stability in budgeting. The attached graphics show a framework for the advantages of this program. Proposed Vehicles The attached PDF shows vehicles and approximate configuration. It also shows projected costs, Estimated Fair Market value, recouped from their sale. Vehicle Disposal Part of the economics of this leasing plan relies on the sale of the old fleet vehicles or Estimated Fair Market Value.