HomeMy WebLinkAbout1.19.21 work session minutes COUNCIL WORK SESSION
January 19, 2021
3:45 p.m.
Meeting was held via Zoom.
Members present: Boesen, Amos, Morrissey, Klein.
Moved by Klein seconded by Boesen that the Agenda, as proposed, be approved. Voice-vote
Ayes: Four. Motion carried.
Objective: Discussion of leasing vehicles for the Police Department.
Joel Fitzgerald, Police Chief, explained that since the last work session he has met with council
members to have further discussion about the proposal and that the meeting today would review
some of the changes to the proposal based on those conversations.
Brandon Gish, Enterprise Fleet Management, provided an overview of the proposed partnership
with Enterprise Fleet Management.
Mr. Feuss arrived at 3:52 p.m.
Joel Fitzgerald commented that he asked Mr. Gish to re-run the numbers and be ultra conservative
so that the numbers we are seeing are the bare minimum revenue we would see.
Mrs. Juon arrived at 3:58 p.m.
Mr. Amos questioned the mileage of 10,000 per year in the slide presentation and asked the Chief
what the annual miles have been for the current fleet.
Joel Fitzgerald commented that the actual annual mileage is lower.
Mr. Boesen questioned the number of vehicles that will be leased because some of the vehicles
would be assigned to employees who do not currently have vehicles.
Joel Fitzgerald explained why 23 vehicles would be advantageous and that it will offset the initial
cost of the program. If council chooses to move forward with fewer vehicles, that could also be
done,but he recommends sticking with the 23 vehicles.
Mr. Boesen questioned how the initial purchase of the lease would be funded.
Joel Fitzgerald explained that they would use CARES Act Funds and salary savings.
Mr. Boesen questioned the size of engine that is being specced out.
Brandon Gish commented that it would be a V8 5.3.
Mr. Boesen questioned the estimated profit that the city will see after the first year.
Brandon Gish commented that the gain would be $19,200.
Mr. Boesen commented that it would be his opinion that the profit be put in a separate fund so that
the city would be able to buy its way out of the vehicle. He asked what would happen if we
wrecked a vehicle.
Brandon Gish explained that if the city chose not to repair the vehicle it could be replaced with
another. If the vehicle was totaled, it would be the difference between the reduced book value and
the fair market value.
Mr. Boesen commented that one thing that helps sell him on this program is that even if we broke
even, we are $25,000 ahead CIP wise on what we would be bonding to purchase a new vehicle
anyway. He further asked how leasing vehicles would influence the debt service levy.
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Major Leibold explained that if the purchase is made out of general fund then it does not apply
towards the debt service levy. He stated that he does not know if it affects the debt ratio.
Mr. Morrissey questioned the physical damage waiver.
Brandon Gish commented that it is what you see on a rented vehicle.
Mr. Morrissey questioned the charge per mile if the vehicles go over the mileage.
Brandon Gish commented that there is not charge for going over the allotted mileage and explained
that the vehicles would still be in an equitable position up to about 25,000 miles.
Joel Fitzgerald commented that they plan to swap out higher mileage vehicles.
Mr. Morrissey questioned the date this would be approved by council.
Joel Fitzgerald explained that it was initially on the agenda for a vote this evening, but it was been
moved to February 1St to allow for a public hearing.
Mrs. Juon clarified that an amendment was sent out changing the item to setting a date of public
hearing.
Mr. Morrissey requested the opinion of the Chief Financial Officer.
Joel Fitzgerald welcomed all council members to reach out with additional questions or
clarification.
Mrs. Juon questioned if Mr. Bennett knew the reduction in maintenance time for the Central
Garage.
Randy Bennett, Public Works Division Manager, explained that the department has caught up on
preventative maintenance following some restructuring. He added that there is some timesavings
as newer vehicles will not require as much maintenance.
Mrs. Juon clarified this program is just for unmarked vehicles.
Joel Fitzgerald confirmed.
Mr. Amos questioned the number of vehicles we currently have and what will happen to those
vehicles.
Joel Fitzgerald commented that the current vehicles will be sold at auction and Enterprise will
facilitate the sale of those vehicles. That money will be coupled with money from the salary
savings to participate in this program. He said there are currently 19 vehicles and we want to have
23.
Mr. Boesen questioned if the city would handle general maintenance such as oil changes and tire
rotation.
Randy Bennett commented that it depends on how the agreement is structured.
Joel Fitzgerald commented that there would also be savings in this area because newer vehicles do
not need oil changes as often as older vehicles. He explained that outsourcing for oil changes and
tire rotations could be an option to help alleviate any back up with in-house maintenance.
Brandon Gish commented that the manufacturer and Enterprise recommend oil changes every
5,000 to 8,000 miles due to engine hours, not just mileage.
Mr. Boesen questioned if a tire was destroyed, for example, which budget would bear that cost.
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Randy Bennett commented that he needs to look into how that will work, because currently the
expense is charged back to the department. He added that patrol vehicles currently come out of
his budget not police.
Mr. Boesen commented that he believes the vehicles may be driven more than they are now
because the vehicles in the fleet currently are so old. He added that there may be added expenses
if that is the case.
Randy Bennett commented that they have no problem handling the maintenance for the vehicles.
Brandon Gish commented that in house or outsourced maintenance is up to the city, and added
that for example the City of Mason City does the maintenance in house.
Mr. Boesen commented that he wants to see the maintenance stay in house as they do more than
just the basics.
With no further business before the Council, it was moved by Amos seconded by Klein that the
meeting be adjourned at 4:22 p.m. Voice-vote Ayes: Six. Motion carried.
Kelle# 1elchle
Kelley Felchle
City Clerk