02-27-2017 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION MINUTES February 6, 2017 DRAFT 2 45 The council will consider adoption of the goals at the council meeting on February 13, 46 2017. 47 2. Enterprise Fleet Presentation – Public Safety Director Swenson and Finance 48 Director Cotton introduced representatives from Enterprise Fleet Management who 49 reviewed a PowerPoint presentation. They are responding to the council’s direction to 50 investigate the possibility of going to a lease environment for City of Lino Lakes fleet. 51 52 Trent Dressen and Dan Kenny, Enterprise Fleet Management, gave a presentation covering 53 what they do, who they are and who they provide services for (list noted). They will also 54 include some recommendations for the city. They have found the leasing process can 55 work well for government entities. The presentation included information on: 56 - services that they offer (and what they dedicate in terms of account management staff ); 57 recommendations are provided annually; 58 - flexible financing options for high use vehicles as well as lower use fleet items; 59 - back end support that helps with all the smaller details; 60 - open ended leasing (no mileage limits, wear & tear etc); the city would have all 61 ownership rights and could keep or maintain the vehicles; 62 - real benefit is to have a better cash flow for your vehicles; 63 - operating expenses can be included and fixed within a budget; 64 - vehicle disposal is an included element in the form of them making recommendations to 65 the council (would be sold for more value than at auction). 66 67 Council Member Kusterman recognized that the leasing option presented represents a 68 finance agreement that would spread costs out. He noted that the financing rate is higher 69 than what the city would normally pay for interest costs. Mr. Dressen added that it takes 70 the guesswork out and it can make financial sense. 71 72 Council Member Kusterman remarked that it would also be valuable for the city to 73 understand its current inventory and its value. 74 75 The representatives reviewed a savings analysis for the city’s fleet plan. 76 77 Mayor Reinert asked about the period of the presumed lease. The representative said this 78 would normally be no longer than five years and 100,000 miles. Mayor Reinert pointed 79 out that this doesn’t cover the full fleet (fifteen cars only) so there are added costs for the 80 additional vehicles. 81 82 The council asked Director Swenson for his opinion on leasing. He suggested that if the 83 council is interested in a policy on longer use of vehicles, it could make sense. It depends 84 on the goals. Mayor Reinert expressed his concern at planning on certain resale revenue; 85 that area is subjective and he’d prefer more specific information in that area since it’s 86 being presented as a huge part of the value of leasing. 87 Representative explained that overall they are offering their extensive expertise in the area 88