HEALTH & HUMAN SERVICES AGENCY - T. BELTON

Approve the Return of Seven (7) Leased Vehicles and Execute Lease Agreements with Enterprise Fleet Management for the Lease of Eight (8) Vehicles

SBC FILE NUMBER: 130

The Health & Human Services Agency (HHSA) has an existing master lease agreement with Enterprise Fleet Management that incorporates flexibility for HHSA to periodically refresh vehicles based on a series of variables. HHSA works with Enterprise staff to identify the most prominent variables to consider when deciding if HHSA should refresh any leased vehicles in our fleet. These variables include identifying when a vehicle has maximum resale value in the open market, when an alternative vehicle may have improved safety features, when an alternative vehicle may have improved fuel economy, and/or when an alternative vehicle may better meet HHSA's overall business needs.

Staff evaluated the status of HHSA's existing leased vehicle fleet and identified that it is in HHSA's best interest to return seven (7) leased vehicles to Enterprise Fleet Management because these vehicles currently have optimal resale value, alternative vehicles can provide improved safety features, alternative vehicles can provide improved fuel economy, and alternative vehicles can better meet HHSA's existing and future business needs.

Additionally, staff has evaluated all available alternative vehicles and is recommending that, when the seven (7) vehicles above are returned, HHSA executes eight (8) new lease agreements for vehicles from Enterprise Fleet Management. This transition will coincide with HHSA's plans to surplus a non-operational County-owned vehicle and does not add to the total number of vehicles in HHSA's overall fleet.

The seven (7) returned vehicles will include a total of six (6) Chevy Impalas and one (1) Nissan Pathfinder. The eight (8) new leases will be for six (6) Chevy Equinox and two (2) Chevy Traverse.

The Chevy Equinox and Chevy Traverse have improved safety features that include standard automatic emergency braking, lane keep assist and lane departure warnings, front pedestrian braking, and rear vision camera.   Fuel economy would improve from 22/31 with Chevy Impalas to 28/39 with the Chevy Equinox. And while fuel economy does not improve with acquiring two (2) Chevy Traverses (rated at 18/27), these vehicles improve safety and passenger capacity with the ability to safely accommodate a total of eight (8) passengers while the Impalas can only seat five (5). This is an important variable because of HHSA's ongoing need to transport groups of people, including when staff transports adults and children who are under HHSA's care during emergency response situations and are required to install child safety seats in a vehicle before they transport children.

Executing new lease agreements will not impact the FY201920 budget as these costs have already been incorporated in the FY201920 Adopted Budget. HHSA staff will budget ongoing costs for the duration of any new lease agreements in future Fiscal Years through the County's standard budgeting process.