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HomeMy WebLinkAboutFleet Synopsis, City of Seal BeachFLEET MANAGEMENT T Zeke Jenkins 714-448-6021 Zechariah.R.Jenkins@efleets.com Sr. Account Executive PHONE EMAIL If Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. FLEET SYNOPSIS I CITY OF SEAL BEACH THE SITUATION Current fleet age is negatively impacting the overall budget and fleet operations • 17% of the Non -PD light and medium duty fleet is currently 10 years or older, 6% of the PD fleet. • 42% of the Non -PD light and medium duty fleet is currently 6 years or older, 25% of the PD fleet. • 6.3 years is the current average age of the Non -PD fleet, 5.1 years for the PD fleet. • 11 years — time it would take to cycle the entire fleet at current acquisition rates • Older vehicles have higher fuel costs, higher maintenance costs, and tend to be less unreliable, causing increased downtime and loss of productivity. In addition, older vehicles are missing current safety & environmental emissions features that are standard on newer vehicles. THE OBJECTIVES Identify an effective vehicle life cycle that maximizes potential equity at time of resale creating a savings of over $470,000 in 10 years for the Non -PD fleet, and $1,000,000 in 10 years for the PD fleet. • Shorten the current vehicle life cycle to 5 years and proactively analyze the fleet each year to determine the lowest cost of ownership • Provide a lower sustainable fleet cost that is predictable year over year • Reduce Maintenance Costs by more than 70% by replacing them at the optimal time • Reduce the overall fuel spend through more fuel efficient vehicles • Leverage an open-ended lease to maximize cash flow opportunities and recognize equity. Increase employee safety with newer vehicles - Currently: 0 2 vehicles predate Anti -Lock Brake standardization (2007) 0 19 vehicles predate Electronic Stability Control standardization (2012) ■ ESC is the most significant safety invention since the seatbelt 0 61 vehicles predate standardization of back up camera (2018) Piggyback Sourcewell Contract: Awarded RFP #060618-EFM that addresses the following: • Access to all fleet management services as applicable to the needs of the city • Supports the city's need for ongoing fleet evaluation, assessing costs and reviewing best practices THE RESULTS By partnering with Enterprise Fleet Management, The City of Seal Beach will be better able to leverage its buying power, implement a tighter controlled resale program to lower the total cost of ownership and in turn minimize operational spend. We estimate that The City of Seal Beach can reduce it's overall fuel costs by 28% and reduce it's overall maintenance costs from an average $156.25 to $42.47 per unit per month. Leveraging an open-end lease maximizes cash flow and recognizes equity from vehicles sold creating an internal replacement fund. Furthermore, The City of Seal Beach will leverage Enterprise Fleet Management's ability to sell vehicles at an average of 9% over Black Book Values. Enterprise and the logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. FLEET PLANNING ANALYSIS I CITY OF SEAL BEACH Non -PD Fleet City of Seal Beach as Fleet Profile Vehicle Type j #of Type Average ;Average IABe�f Annual Mileage 112 Ton van Cargo 1 15.8 5,300 Compact SUV 4x2 4 7.9 3,800 Full Sim UV4x4 1 1.5 5,000 Compact Pickup Ext4x4 2 6.6 ! 3,600 Compact Pickup Quad 4x4 2 2.5 3,800 1/2 Ton Pickup Reg 4x2 1 1.5 j 5,000 1R Ton Pickup Exl4x2 1 9.6 6,700 112 Ton Pickup Ext 4x4 1 8.6 I 5,900 314 Ton Pickup Reg 4x2 5 8.4 6,100 314 Ton Pickup Reg 4x4 1 4.6 3,300 34 Ton Pickup Ext 4x2 2 7.6 2,600 1 Ton Pickup Reg 4x2 1 5.6 4,700 1 Ton Cab Chassis 1 4.6 4,200 I I TotalslAverages 1 I I 0 2022 2023 2024 2025 2026 Under - Utilized 1 '', 0 0 0 0 0 0 3 1 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 2 0 0 0 0 0 1 0 0 1 0 0 0 0 0 1 0 0 0 0 1 2 2 0 0 0 0 01 61,240 0 0 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 4 14,169 j s 39,405 90,802 0 • Fiscal Yaar 2022 = 10 years old and of rlar, or odometer over 100,000 Fiscal Year 2023 = a years old and older, or od,m,t,r aver 93,300 • Fiscal Year 2024 - 6 years old antl oltler, or otlometer aver 86,600 • Fiscal Year 2025 = 4 years old and older. or odometer over 79.900 Fiscal Year 2026 = Remaining Vehicles • Underutilized = Annual Mileage less than 2,500 City of Seal Beach - Fleet Planning Analysis ■HDTRUCK ■SUV STRUCK EVAN Current Fleet 23 Fleet Growth 0.00% Proposed Fleet _ 23 Fleet Casts Analysis i . Current Cycle 10.95 Annual Miles 4,600 Proposed Cycle 4.30 Current Maint $138.91 Needs Proposed Maiid. $27.01 Maint. Cents Per Mile $0.36 Current MPG 10 PricelGallon $3.00 Total Current Maint Spend $0.00 Leased MPG 12.5 Est. Fuel Miles 105800 (hide row) Average Annual Purchase 2.1 calculate Maint cents per no $0.11 (hide row) Fiscal Fleet Size Fleet Mix Annual Owned Leased Purchase Lease" Fleet Equity Cost Equity Maintenance Fuel Fleet Budget Annual Net Cash Year Needs (Owned) (Leased) Incl. Tax Average 23 2.1 2"0111"0 6W 0 38,339 '22 23 4 19 4 2,145 28,055 •24,838 32,968 30,636 66,967 61,240 '23 23 8 11 12 2,145 66,082 -94,354 22,226 28,428 24,527 105,680 '24 13 6 5 18 0 103,304 -95,720 -9,121 14,169 26,772 39,405 90,802 '25 23 1 5 18 0 103,304 0 -17,757 14,169 26,772 126,488 3,719 '26 13 7 0 23 0 133,703 -94,035 -48,990 7,455 25,392 23,525 106,682 '27 23 5 0 23 0 133,703 -57,551 7,455 25,392 108,999 21,208 '28 23 7 0 23 0 133,703 -96,536 7,455 25,392 70,014 60,193 '29 23 9 0 23 0 133,703 -10,223 7,455 25,392 156,327 -26,120 '30 23 2 0 23 0 133,703 -39,424 7,455 25,392 127,126 3,081 lFuel ■Maintenance ■Purchase '31 23 3 0 23 0 Q3,703 -83,616 7,455 25 392 82 934 47,273 i •. I $473,757 1 • r r $21,127 ' Lease Rates are conservative estimates "Estimated Current Fleet Equity is based on the current fleet "sight unseen" and can be adjusted after physical inspection Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. FLEET PLANNING ANALYSIS I CITY OF SEAL BEACH PD Fleet City of Seal Beach - Fleet Profile Vehicle Type 0 of Type I Average :Age (years)' `Average Annual Mileage Minivan -Passenger 2 3.5 4,000 Compact SLrv4x2 7 6.0 8,200 Mid Size SUV 4.4 15 5.1 s 13,600 Full Size sUV4x2 3 2.5 '. 11,500 Compact Pickup Ext 4x2 1 4.6 5 9,200 112 Ton Pickup Quad 4x2 1 2.5 i 5,400 112Ton Pickup Qu ad 4x4 2 4.1 ? 4,900 314 Ton Pickup Quad 4x0 1 13.7 2,300 TotalslAverages 32 5.1 10,400 Current Fleet Current Cycle Current Maint. Maint. Cents Per Mile 2022 2023 2024 2025 2026 I Under- Util ieci 12 ` Fiscal Year 2022 =10 years old and older, or odometer over 100,000 ` Fiscal Year 2023-:y = 6 ye era old and older, or odomeler over 93,300 `Fiscal Year 2024 = 6 yeare old and older, or odometer over 86,fi00 ` Fiscal Year 2025 = 4 years old and older, or odometer over 79,900 Fiscal Year 2026 = Remaining Vehicles Underutilized = Annual Mileage less than 2,500 City of Seal Beach - Fleet Planning Analysis ■-TRUCK ■SUV pTRUCK EVAN 32 Fleet Growth 0.00% Proposed Fleet 32 Fleet Costs Analysis 6.46 Annual Miles 10,400 Proposed Cycle 4.53 y $337.36 Proposed Maint. $89.33 $0.39 Current MPG 14 PricelGalion $2.60 ' Lease Rates are conservative estimates "Estimated Current Fleet Equity is based on the current fleet "sight unseen" and can be adjusted after physical inspection 4 Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. Fleet Mix Fleet Cost Annual Net Cash Fiscal Fleet Size Annual Owned Leased Purchase Lease• Equity Equity Maintenance Fuel Fleet Budget Year Needs (Owned) (Leased) Incl. Tax Average 32 5.0 32 224,625 0 129,546 61,806 415,977 V 0 '22 32 7 25 7 40,781 79,759 -45,475 108,711 59,102 242,876 173,099 '23 32 12 13 19 57,093 204,713 430,399 72,995 54,466 258,866 157,109 '24 32 6 7 25 0 249,061 402,360 55,136 52,149 253,966 161,991 '25 32 3 4 28 0 277,215 -67,130 -34,009 46,207 50,990 273,272 142,705 '26 32 9 0 32 24,468 322,613 -54,030 -62,226 34,301 49,445 314,769 101,208 127 32 9 0 32 0 322,613 -57,772 34,301 49,445 348,767 67,189 '28 32 5 0 32 0 322,613 -72,717 34,301 49,445 333,842 82,134 '29 32 6 0 32 0 322,613 -106,245 34,301 49,445 300,314 115,663 130 32 11 0 32 0 322,613 -56,196 34,301 49,445 350,362 65,615 ■ Fuel ■ Ma'mtenance ■ Purchase 131 32 8 0 32 0 322,813 -14615 34.301 49,445 391944 24,033 $1,090,745 $70,927 ' Lease Rates are conservative estimates "Estimated Current Fleet Equity is based on the current fleet "sight unseen" and can be adjusted after physical inspection 4 Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. CASE STUDY I CITY OF SAMPLE CASE STUDY I CITY OF SAN MARCOS FLEET MANAGEMENT The City of San Marcos Reduces Costs her 7 and Replaces Aging Vehicles. BA,C KGROUNDw.. . Location: San Marcos, CA Nix _91111111ft Industry: Government Total vehicles: 90 vehicles J THE CHALLENGE Hair Of The City of San Marcos' vehicles were operating past their useful Ilfe. The City's fleet was deteriorating rapldry, and many of the vehicles - needed to be replaced to mitigate escalating repair and maintenance costs. Budget challenges prevented the Cltyfrom purchasing new vehicles. Major rep airs reduced the numberoravallabievehlcies, and the City vehicle downtime was significantly affecting Its operations. Maintenance costs continued to erode the budget and Interfere with the efficiency of City operations. THE SOLUTION Enterprise Fleet Management evaluated the City's entire neat to Identity the most cost-effective way to replace Its aging vehicles. Ten vehicles - were Identified as under-utilized and completely removedfrom service. — Bylmpigmenting an open-ended lease structure, theCltywasabieto replace the remaining ninety vehicles within a three-year period. The Keys Results program did not require aIarge Initial out lay of funds. The City or Son "�� Marcos was not burdened with extensrve capital requirements Torvehicie replacement, allowing them to replace highly Important, heavy-duty and emergency vehicles first. 'The Enterprise Fleet Management lease program has 27% not only alleviated some of the maintenance burden DECREASE placed on our lean fleet maintenance staff and budget, it has also provided a level of flexibilitythat allows 0 IN IN FLEET COSTS my team to promptly address the City's dynamic fleet needs without sacrificing service:' —Lisa fbw . PuDNG MrksManager- AdAJfFJf3lFasrton & FAR9I RIGHT -SIZED The Full Maintenance Program provides a low fixed monthly cost. which Is FLEET BY 1 easily budgeted for every year. The program eliminates the need for City resources to work an the light-duty neat, so the mal ntenance staff can solely focus on the heavy-duty equipment. 'FOR BETTER THE RESULTS UTILIZATION The partnership with Enterprise Fleet Management has significantly reducod the portions of the PUDIIc1NorKs-Fleetap9ration s budget and the WMIcle Rep lacorn entiund that was affected by the declining condition or the Ment -duty Tleet. The Crty realized a 271A decrease In the REPLACED 1 cost to purchase and maintain the 119 Mt duty 11 get. The program wlll result EL■�i E 11 1 L In a comb1#ined fund savings of 51.1 million over a five-year period. 1 l To learn more, vish abets.com or call 877 -73 -FLEET. 90 VEHICLESNd WiriwiLs OVER A 3 -YEAR PERIOD [rad■arit■'cwpwryuLk.IaIU_uo-�apuFw..6tru.SYr.h■aYandxwwdYRelui+auurrcpruwurars 0371■ trwrpi■Fk■. W�■c■� h. �e13{}RI 5EMEM } Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. ACCOUNT MANAGEMENT The City of Seal Beach will have a dedicated, local account team to proactively manage and develop your fleet while delivering the highest level of customer service to facilitate your day-to-day needs. • Your dedicated Account Manager meets with you 3-4 times a year (or more depending each client's needs) for both financial and strategic planning. • Your Account Manager will provide on-going analysis — this will include most cost-effective vehicle makes/models, cents per mile, total cost of ownership, and replacement analysis. TECHNOLOGY Enterprise Fleet Management's website provides vehicle tracking, reporting, and metrics. Our website can be customized to view a wide range of data so that you may have a comprehensive and detailed look at all aspects of your fleet and the services provided. Our Mobile App gives drivers all of the convenience and functionality they need. • Consolidated Invoices - Includes lease, maintenance, and any additional ancillaries • Recall Information - See which units have open recalls • License & Registration - See which plate renewals are being processed by Enterprise and view status • Alerts - Set customizable alerts for oil changes, lease renewals, license renewals, and billing data • Lifecycle Analysis - See data regarding all transactions for the lifecycle of the entire fleet, with drill -down capability to any specific lease or transaction TESTCOMPANY ..:_.np— FLEET MANAGEMENT oao-+r s,n c�enmen Flee! MONTHLY FUEL SUMMARY YEAR OVER YEAR FUEL TOTALS PEND MONTHLY FUEL SPEND OUTLIERS E8l)%) ALERTS lACW13 wznange cues to ce„ lAHR69lOHi5HRR1,M13FA6P on vangewes pen ae .R.i�.ew. MAINTENANCE SPEND OUTLIERS MONTHLY FUEL SPEND BY FUEL GRACE MONTHLY FUEL SPEND OUTLIERS (120h) OIL CHANGE OLgLIERS ° mee.snm � M �Mu we,>esm i Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. (.� RRRMERR SERVICERCRTRR WINTENANCECARU � oRRERsrnus CLLLR9NRgEAfSQIRI4E A FULL EARR MONTHLY FUEL SPEND OUTLIERS (120h) OIL CHANGE OLgLIERS ° mee.snm � M �Mu we,>esm i Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc. REFERENCES I CITY OF SEAL BEACH SOME OF OUR CURRENT PARTNERS • City of Westminster • City of Laguna Niguel • City of Dana Point • City of Mission Viejo • Santa Ana Police Department • Placentia Police Department • City of Banning • City of La Quinta • City of Palm Dessert • City of Corona • City of Riverside • City of Commerce REFERENCE CALLS: City staff has completed reference calls with the Cities of Westminster, Laguna Niguel, & Dana Point. 7 Enterprise and the 'e' logo are registered trademarks of Enterprise Fleet Management, Inc. All other trademarks are the property of their respective owners. FLEET MANAGEMENT ©2020 Enterprise Fleet Management, Inc.