minfin 02-16-21 - Laserfiche WebLink

Home Browse Search

MINUTES OF THE FINANCE COMMITTEE February 16, 2021 Online Broadcast Meeting Present: Councilmembers Bullock, Litten, &Neff Also Present: Councilmembers Kepple & Rader, Mayor George, Finance Director Rancatore, Director Ducu, Director Rancatore, Director Leininger, Assistant Director Schuster, Fleet Manager Holman Start time: 5:49 p.m. AGENDA ORDINANCE 03-2021 -AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force at the earliest period allowed by law, authorizing the Director of Finance to enter into Equipment Leases in forms approved by the Director of Law on behalf of the City of Lakewood ("City"). (1st read and referred to Finance 1/19/21; 2nd reading 2/1/21) Chairman Bullock opened discussion on the financing of municipal leases and shared that Director Rancatore is working with Public Works to reduce maintenance done on vehicles in order to free up staff time. It was added that shorter leases could potentially yield higher resale pricing on city vehicles. Mr. Bullock concluded that he wants the city to look at clean, less polluting forms of equipment. Councilmember Rader noted his primary concern was the leases effect on the budget and added that he would like to see a decarbonizing of the fleet. Director Rancatore gave an overview of the legislation, stating it is part of the capital lease program and budget plan. This year the Finance and Public Works Departments examined what they could do to lower costs in regard to vehicle maintenance. They found there's a lot of down time for vehicles do to the city's past practice of practically running vehicles into the ground. They have explored leasing refuse trucks and are currently not sure if they are the best or least expensive option. They are looking at using Enterprise for smaller sized vehicles. Director Rancatore stated that the city is down to 205 vehicles, after downsizing over the years. The goal is to achieve some sort of economies of scale with partners to reduce vehicle down time and maintenance. There is one hybrid police vehicle in the city's fleet, and the city is going to get 4-5 more, as they have the potential to save the city money in the long run. Discussion ensued regarding doing business with Enterprise to handle leasing of city vehicles. Director Rancatore noted that this approach is a model cities have begun to consider.