Okaloosa County BOCC — February 18, 2014 — Action Item Printout

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 18, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Airport Leased Vehicle Proposals DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Board of County Commissioners is requested to approve the Airports Department request to re-advertise for vehicle lease quotes. BACKGROUND: On February 7, 2012, the Board approved a two year lease of 10 vehicles ( 5 trucks and 5 small passenger vehicles) to replace the Airport’s fleet which had an average age of over 10.83 years. That lease was awarded to Enterprise Fleet Management under the provisions of the rental car leases and will expire in June 2014. Since the contractual authority in the rental car leases was for two years, the Airport is requesting permission to advertise for new proposals. The requested number of vehicles has been reduced to nine (9) and includes five (5) American made hybrid sedans, three (3) 4x4 ¾ ton American made 4-door pickup trucks, and one (1) 4x2 4-door 1 ton American made pickup truck. The estimated annual cost including maintenance, registration and depreciation is about $46,527 or $430 a month based on the current agreement. Since the lease is an operating expense, the cost of these rentals is included in the Airports Department Operating Budget and in the airline rate base; and, therefore, recovered in substantial part through our airlines’ rates and charges calculations. If these vehicles were acquired as a capital expense, the cost would exceed $350,000 and the County would also incur maintenance expenses. These vehicles would not be eligible for federal or state financial assistance as a capital expense. OPTIONS: Approve, Disapprove, Table RECOMMENDATIONS: Staff recommends solicitation of proposals for two and three year alternatives for comparison and selection of the most cost effective solution. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator