REVISED RESOLUTION
Title
Contract No. 1802170
Fleet Management Services
Body
Agenda of: August 28, 2019
Item No.: 2019-310
Amount: $8,318,000
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: August 12, 2019
RE: Contract No. 1802710
Fleet Management Services
Vendor: Enterprise Fleet Management
MOTION
Upon recommendation of William Wolfson, Chief Administrative and Compliance Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to:
1. Enter into Contract No. 1802710 "Fleet Management Services" with Enterprise Fleet Management, at a cost not to exceed $9,233,000 for a duration of 60 months; and
2. With the exception of short-term leases of 120 days or less in duration, GLWA will utilize the self-funded option available under this contract to obtain vehicles; and
3. Authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA has a fleet of approximately 290 vehicles. Of the 290 vehicles, approximately 240 are currently in operation. Currently, GLWA's fleet is maintained by the City of Detroit ("City") pursuant to Schedule OPS - 001 of the 2015 Shared Services Agreement between the City and GLWA. The proposed contract would allow GLWA to obtain fleet maintenance services and, where price advantageous, purchase or lease new or used vehicles from Enterprise.
JUSTIFICATION
There are several justifications for this agreement, including:
1) Cost Savings
GLWA currently purchases its fleet services from the City pursuant to its Shared Services agreement with the City. The Shared Services Agreement indicates that for a service to be canceled there should be at least a 10% savings to the canceling entity. As illustrated by the attached memorandum from GLWA's Chief Financial Officer, the proposed ...
Click here for full text