COUNTY EXECUTIVE OFFICE - E. COLIO WARREN
1. Review and reconsider County’s Vehicle Leasing Program with Enterprise Fleet Management; and
2. Provide direction to staff with respect to the future operation of the Vehicle Leasing Program.
SBC FILE NUMBER: 119
REGULAR AGENDA
On December 1, 2015, the Board of Supervisors approved a vehicle leasing pilot program with Enterprise Fleet Management. More specifically, the Board approved a Master Equity Lease Agreement and a Vehicle Maintenance Agreement. The Board also authorized the Health and Human Services Agency (HHSA) to lease six vehicles with an additional four vehicles to come back to the Board for future approval.
The actual term of the Master Equity Lease Agreement is reflected in each schedule produced and assigned to each vehicle. The schedule for each vehicle tiers off of the Master Lease Agreement and establishes the specific term and conditions of the lease for each vehicle as its own contract. The HHSA Director and Deputy Director were specifically authorized to execute and deliver the lease schedules to Enterprise on behalf of the County without further Board approval.
The Master Lease Agreement continues in full force and effect and will end whenever the County declines to request any additional vehicle lease schedules. The Master Lease Agreement authorizes county departments to lease vehicles under each schedule for specific terms as needed to support county operations. The lease costs under the Master Lease Agreement and associated schedules for each department are approved annually by the Board as part of the normal budget process or as a supplemental appropriation, as necessary.
An amendment to the Master Lease Agreement provides the option for the County to purchase the leased vehicle by the payment of the Reduced Book Value based upon depreciation rates in the Agreement.
In addition to approving the Master Equity Lease Agreement, the Board requested that HHSA report back to the Board on the cost-benefit analysis of this program within 5 years. There is no indication in the record that the Vehicle Leasing Program or the Vehicle Maintenance Policy were ever brought back to the Board of Supervisors for review and consideration. More importantly, there is no record that the Board approved the expansion of the pilot program to a county-wide program.
Consequently, vehicles are leased without the approval of the County Executive Officer and the Board of Supervisors. In doing so, a department is not required to develop and present the cost-benefit analysis of leasing versus purchasing a given vehicle. It is estimated that 33 vehicles have been and continue to be leased under this program.
Without County Executive and Board review and approval, there is less control over the Vehicle Leasing Program and the County budget.
There is no fiscal impact associated with a review and reconsideration of the Vehicle Leasing Program.
1. Review and reconsider County’s Vehicle Leasing Program with Enterprise Fleet Management; and
2. Provide direction to staff with respect to the future operation of the Vehicle Leasing Program.