001remarks or visitors. >> No. >> Item three, discuss and review section 3 policy information for the city's Texas CDBG contract CDV23-305 mini street water and sewer improvements. >> Good afternoon, mayor and council. Um, this is for the discussion and review of section 3 policy for our CDBG grant for the Ministries. This year received a $500,000 grant. And then we have Megan with public management if you have if you have any questions show that the city is in compliance with federal civil rights and employment opportunities. So, we have to show job vacancies, um, labor standard hours, um, like I said, to be in compliance with, um, TDA. >> Just give us a quick background on what the project is. >> This is for Mini Street. I'll be honest, the public works side I'm not too familiar
002with. Jennifer team member which >> this one just >> this is one of the Are you saying that the underground utilities over on Min Street is is bad? >> Yes, sir. >> The sewage in the water. >> Yes, sir. So it's just moving forward changing out the beant. >> So this this grant will replace the sewage and the water from one end of minute to the other end of minute. Kevin, why don't why don't you have Megan come up and just kind of cover real quickly what tonight's item is because tonight really this isn't an application for a grant or any action regarding the grant that all we're doing tonight is reviewing the section three um requirements which are a federal requirement with regard to it. So it really there's no action required by council
003tonight. we just had to review a certain component uh to make sure that we were compliant with it. And so I just wanted to be clear with that. Megan, I want you to give kind of an overview. >> One quick question. >> Yeah, we do already have the grant. >> Yes. >> Oh, yeah. This is this is already Yes. >> Yeah. It's under design already. Um so as part of TDA's um grant compliance, it is required that this specific presentation be given to council um before we award a construction contract. Um, so we're getting close. We're in the design phase. We've got our environmental completed already. So, I wanted to just go ahead and get this in front of you guys so you're aware. Um, really all section 3 is is um the city's best
004attempt to promote uh employment for low to moderate income folks specifically in the project area. So, say we um contract with a construction contractor and they have someone leave their um their crew. We would ask that they try to hire locally from a lowincome um employee. Uh that's really all section 3 is. It's a it's a best efforts. Um and I'll be submitting section 3 reports on behalf of you guys throughout the grant and then a final section 3 um closeout document at the end as well. Um so really uh we will also ask the city to kind of there's a new requirement that even city employees should document kind of how much time they're spending. I don't expect that really any city employee is a section 3 employee but um so say if heaven
005spends an hour a day on the grant for a week then hey that's 5 hours a week. Um and we'll document that as well. Um but that's really it. The um the presentation includes a map of your section 3 area as well. So that would be a 1m radius of the project location. So we'd really be trying to employ to the best of our ability um anyone within that area that meets the LMI requirements. Like I said, this is a best effort. So if your contractor is already fully staffed, doesn't need to hire anyone, then that's um that's okay as well. We will when we go to bid do our best to invite section 3 businesses to um bid on the project uh minority owned businesses, womenowned businesses, that kind of thing. So that's that's
006really all section 3 requires of you. >> So how do you how do you market that specifically to those folks that are low income? I think right now we put it in the paper uh whenever we have a bid or whenever there's jobs that are open and the jobs board potentially. But how do you specifically >> Right. Weach, we have a list of the job boards in the area that that work with small section 3 businesses. So, um, when the project goes out to bid, I'll ask the engineer to also send direct solicitation to those job boards, have the bid posted on their sites. That way, we're doing our best to try to elicit those types of bids from contractors. Okay. And the city has a job board, too. Okay. Mr. Mayor may or may
007not be aware. So what you're saying is that the city will not go out for bids, but your company will go out for bids. >> No, the city is going out for bids through BL Engineering is putting together the the bid book and everything. And I'm working closely with with them. >> Okay. I thought I'm I thought I heard you said it. When you go out for bids, there >> when we as a as a collect as a team go out for bids. Yeah. Well, I'll make sure that the engineer sends those direct solicitations as well. Is this affected in any way by the government closure? >> Um, not right now. Uh, as of right now, this grant has been contracted already, so we're good to move forward. Any future grants, that's up for debate.
008But, um, right now, you guys have this grant and also a GLO grant that are set in stone. Any other >> questions? Megan. Thank you. Mayor, I was going to suggest that we do item number five next. It'll be it'll be a quick one and then then we can move on to number four. >> All right. Item five, discussion on the council meetings that fall on November 24th and December 22nd which occur during holiday weeks. >> Yeah. Mayor and Council, the city secretary and I were just kind of looking at the calendar and preparing for the for the close out of this calendar year and noticed that your second meeting in November is the week of Thanksgiving, which may or may not be an issue. Uh, and then the second meeting in December is the
009day before Christmas Eve. Uh, so we thought um you may or may not want to uh cancel those meetings. Uh, just the second meeting in each month. We've been talking to staff, making sure they get things ready and prepared in case you choose uh to uh cancel one or both of those, but we wanted to we thought we'd have the conversation tonight. And if you're ready to tell us tonight, yes, we want just one in November and December, we will move forward accordingly. Or if you want to have a follow-up discussion on November 10th, we can certainly do that as well. But just wanted to kind of get it on everyone's radar. And if you all uh don't want to meet in the weeks of those holidays, we certainly understand that and can make arrangements
010to to get everything on the one agenda of each of those months. >> I think it's been common practice for >> I don't see a big problem the week of Thanksgiving being Thanksgiving is Thursday and Monday. >> Just Christmas Eve, the Monday before Christmas Eve. I know people are trying to >> I have no problem either way, but I >> Yeah, if we have to call a special emergency meeting for some ungodly reason, we can always do that. So, >> right now there's no items on either of those meetings. The staff has already >> Yeah. >> did the first and first one in each month. So, >> I'm fine with it cancelling both. >> Cancel both of those. >> We'll give Connie the nights off. >> Sure. Yes, sir. >> Okay. All right. >> And
011as you said, if if something urgent comes up, we'll communicate and we'll get something scheduled. >> Back to item four, discussion on the enterprise fleet lease exchange program to include new options to consider about moving away from our current partnership to bring vehicle ownership inhouse. >> Yeah, Mayor and Council, uh, Jay Chappelle and and, uh, some other staff members have been working on our fleet exchange. I was going to kind of set the stage and give some background. Um, as as you all know from from our uh one-on-one meetings and just some conversations that we've had earlier this year. Uh, we've been really looking closely at the enterprise lease, make sure that it makes sense for us uh, as a city, make sure it's doing what we expected. And the the reality is I think
012what what we've come to um what I think we're discovering as staff and and wanted to make you all aware of is as it appears to us, the more you peel back the layers of that onion, the stronger the smell gets. Um, and so it just seems like maybe this isn't um all that it was sold to us as. Uh, with regard to saving us money, keeping us in, uh, newer vehicles, uh, it just doesn't seem like, uh, the reality is there with the the maintenance getting done like we expected or or being taken care of. And the more we look at the at the dollars and cents of it, um it just seems like maybe we should at least have tonight's discussion, make sure everyone is on the same page, uh and kind of
013get some guidance from you all before we uh move forward. And so what Jay is going to show you tonight is basically three different uh options. But the rea the the reason for that is so that we can look at the impact it would have with of keeping with the enterprise program that we've that we've been on for a few years or transitioning away and we can we obviously we can't buy 60 vehicles in one year. We're not talking about transitioning away from it wholesale this year, but if we wanted to start buying vehicles this year and moving as we move forward, not adding new vehicles to the lease program and phasing them out over the course of the next five or six years. Uh we could do that. Um or we can go in
014into it a little bit more uh cautiously, dip our toe into it, so to speak, and maybe split the middle and do some vehicles in the lease program this year and a few out of uh the general fund. And so, uh looking at the options, uh really just wanted to to take a a big picture look at is this program doing what what we all believe it should for us? and and as we now have a maintenance services division that's going to start um you know really overseeing things from a maintenance perspective making sure we're doing the PM on schedule for our our vehicles um taking care of those kind of things kind of taking ownership and responsibility for them um maybe we're at a point where we can again start that migration over and
015again we're not talking about dumping 60 vehicles on one mechanic that we have on staff all overnight. If we did start this process, even at the most aggressive that we're talking about, it would be maybe 10 or 12 vehicles this year that would again be less than a year old. They would be brand new vehicles. All they should need hopefully is oil changes. And if it's something more than that should be covered by a warranty. So again, we're not talking about overburdening, you know, a small staff in that maintenance services department, but we really wanted to start taking a look at it. Uh we already, as we've talked about during the budget process, kind of made this decision for u police fleet vehicles, the the actual police patrol vehicles, marked patrol vehicles. Um Enterprise was
016was upfront with us that they don't they don't uh do anything on the maintenance on those. uh they the the cost is still borne by us. So there really was no savings from a maintenance perspective. Uh they were not replacing them on the schedule that um they initially wanted to on the lease because of the upfitting costs that it costs us. So really there's no savings. If we're flipping a vehicle every 3 or four years and having to pay $50, $60,000 to upfit a new vehicle, we're really not getting the we're not able to average that upfitting cost over the lifespan of a vehicle. Uh and so we've we've already made that decision. And in this year's budget that you approved, we did, as you may recall, three emergency vehicles were already in the general
017fund budget, but we also have um the lease program in Enterprise. And we they brought to us a list of um 15 or so vehicles that they wanted to replace and bring in more lease vehicles. And when we really started looking at that, we just felt like as a staff, we should come and have this discussion tonight and see if you all are on the same mindset that we are that hey, maybe maybe we need to start migrating over and owning these vehicles and maintaining them ourselves. Um, and obviously we we may not be comfortable doing that all at one time. Uh so just to kind of give you a little bit of background uh enterprise the vehicles that are in the enterprise lease program they will take in they will sell off at auction
018and any equity that is belongs in that vehicle whatever they sell it for uh net of whatever we owed on the lease if there was any money owed on the lease sometimes there's not we get that money back and that usually if we just are staying in their program they just they um put that money towards our lease payments of the vehicles that we're leasing going forward. So using their numbers, again, I I think they all of us, including some outside sources that we've consulted with feel like they might be might be overly aggressive on what they think they're going to get for those vehicles in auction. They are averaging nor upwards of $20,000 per vehicle. Um, in the 33 years that I've been in city government, I've never seen a city fleet vehicle auctioned
019off for more than $20,000. Um, nor has a a good friend that's been around the last couple weeks, uh, helping us do do some looking at this that that retired as the maintenance services director in in Pasadena that he's done it for a long time. And that that's just more than we ever get. Now, Enterprise may get more than that. they have a little bit more of an audience. But again, just they will not guarantee how much they're going to get. They just give us estimates and what they think our lease payments are going to be if we realize that money coming back from the auctions. And so it just leaves us a little uncomfortable uh moving forward with this number of vehicles and jumping in there expecting we're going to get, you know, $300,000
020plus for the vehicles that they're going to sell on our behalf. um when they will not give us any kind of a guarantee. And so we we just kind of felt like we needed to have this conversation. And uh if we did decide to move forward with buying some, our thought is we might allocate some funding out of G out of the fund balance. um with the expectation is that whatever Enterprise sells them for when it comes back to us then that would come back to us as a check and we would immediately put that back into our fund balance. It's not going to be 100%. We're not going to get 100% of the cost of the vehicles uh of brand new vehicles. Um but if it's, you know, 40 or 50% of it, maybe,
021you know, we take a half million out and maybe it nets out to only a quarter of a million. um depending on how many vehicles we decide to uh to do in ourselves uh on our own as opposed to to moving over. And so what Jay's going to talk about is kind of the the philosophy of trying to start with the oldest vehicles, anything or older, start with getting rid of those first, get ourselves brought up to that and and then kind of make a decision on uh do we just continue with the the lease program? Do you want to just start buying them ourselves or maybe meet somewhere in the middle and do half and half or something along those lines? So, I've set the stage. You have any questions before I let Jay
022talk? I see a couple looking at me like they might have questions. >> Yeah. So, I remember when we went to Enterprise um and we did it in my recollection um was too expensive to have somebody to just be fixing the cars and maybe one of them quit or retired and then we didn't have anybody to service them. Um, so I'm just curious from council any recollection of why we owned our own cars, we maintained our own cars, but we went away from that for a reason uh that was legitimate at the time. Just curious if anybody remembers what what that reason was so that we don't make the same mistake as we go back. >> Sure. Well, I remember too there were at one time we were the availability of of where you would
023buy them from like either a local dealer or a fleet type dealer like they have in Houston. Those were either not responding or >> well plus there was a period of time >> good offers. There were no vehicles available and maybe for purchase, but through enterprise being as big as they were, they could furnish vehicles for us. Will we if we purchase our own, will we be keeping them possibly longer than what we would if if it was in a lease deal with Enterprise? >> I I think the idea is you you keep a vehicle till its reasonable useful life. And so in in in my experience most of the time in in public safety the emergency response vehicles usually that's somewhere in the 6 7 8 years and somewhere around 75 80,000 miles white
024fleet public works vehicles sometimes you can get maybe 8 years sometimes up to 9 or 10 years and up to around 100 115,000 miles. Um, you just try to find that balance point where um you're you're not spending more than it would cost you to replace it or the maintenance cost. >> Was the least enterprise like a threeyear lease, >> four or five. They they will they will do a 48 or 60month uh lease uh is what they what they would like to propose to us. So the the mechanic thing was I do remember that we I think we were going through some personnel issues at the time. Um and then I think overall the at least it was told to us that that the cost was overall better to do a lease. But as
025far as how how deep that research went, I don't I don't know that. Okay. Thank you. Uh yeah, go ahead. >> Out of the 60 vehicles that you said the city own, uh well lease, do we own any of those out of the 60 or they all >> lease? Some are done with their lease. >> If you look at option one on that first sheet, >> um you'll notice in the third column there, it's enterprise vehicle. The ones that are listed as not enterprise are technically all vehicles that own. >> Oh, we got >> Yep. page one on that option one page you'll see on the third column there enterprise vehicle uh where it says enterprise enterprise fleet versus not enterprise >> okay >> um the ones that are marked as not enterprise are actually
026owned by the city >> okay >> so um and for the most part those vehicles with the exception I think of that 2008 uh F350 are being used uh that F that 2008 F350 Jen Jose that's just parked at the shop, right? Yeah. But all the rest of those vehicles are currently in use. Um, so we we already own some vehicles as is. Uh, there is a 2011 Expedition that's on there that shows not Enterprise. It is listed in the Enterprise system. So, when you go to the very last sheet, you'll see it on there as one they want to trade in, but it's not technically theirs. It's the police chief's uh vehicle. Um, but for some reason they list they list it in there because they do monitor that vehicle under their enterprise system.
027We pay like $8 a month for them to keep an eye on how many miles we put on it, but other than that, it's not actually part of their lease program. But the idea we came up with is looking at our oldest vehicles first. Um, you can tell we started this in 2017. We actually have three vehicles that are from 2017, which, you know, that was 8 years ago. like you said, four to five years or four to 48 months to 60 months is their timeline. These are well out of that timeline. So, but they're still in use. Um the list here on option three is what Enterprise proposed to us. These are the vehicles they said, "Hey, if you trade these vehicles in and we give you new vehicles, we can actually bring some
028of your monthly payments down." But you can see on here, there's only one of those 2017s listed. So, we would still be holding on with two of the oldest vehicles in our fleet if we did their suggestion. And I think the goal that they put up here, and I just inherited this a few weeks ago, so I'm going to lean on Jen and Mike to kind of help me out here. The goal that they had here was to try to bring down our monthly overall monthly payments, like Robert said, by utilizing the equity we already have in these vehicles, right? And spreading it. You can see on the far right hand column there's two that are in red, which means that we are actually underwater on those two trucks, but that's because we bought them
029during COVID when everything was way too expensive. Um, so we're sitting on two vehicles. And if you look at the column there for monthly payments, right now we're paying, you know, $800 a month for an F, you know, 150, 2024 F-150 and $1,000 for a 23 Ram compared to all the other vehicles which are in the, you know, 5 to4 to $600 range, right? So, that's kind of what they're trying to help us with is to bring down that monthly payment on those two vehicles while also issuing us new vehicles across the board for roughly newer vehicles that have very low mileage on them in our opinion. So, we came up with two general options to start with. The first one would be uh basically taking all the older vehicles that we have, all the
030oldest vehicles we have in our fleet, those that we own that range from 2008. If you look at option one, Lupe, uh from 2008 all the way up to 2017. Those are the oldest vehicles we have in our fleet. Go back one more screen. Yeah. So, uh backwards. You're on option two. There you go. Oh, >> yeah. He was on option one. >> There you go. Well, he was on the buyout. The ones that we were talking about purchasing. >> Oh, there's two options. >> Yeah. Option one has two two pages. Sorry. Go to page one of option one. >> Boom. >> Yeah. Okay. So, these are all the vehicles we currently have that are both in our fleet that we own as well as Enterprise vehicles. So, we calculated based on what Enterprise gave
031us for the values on the within the Enterprise fleet system. We also went out and did some research to find out what the the vehicles that we own, what they would auction off as a general number we could possibly get. We came up with about 105,000. We could probably make uh pull in revenue-wise on those vehicles if we trade them into Enterprise, get our buyout from those vehicles as well as auction off whatever we do own. Um that would leave us about 105,000 we could possibly get within the next 6 months or so once we go to auction. Um and then we the first option would be replacing all of these older vehicles that are currently in use with newer vehicles that we would purchase outright. If you go to the second screen, option one,
032this is a list of those vehicles and how they tie in to each division of the fleet that we have. So, our estimated total cost for all those vehicles came out to about 514 515 grand minus the 105ish uh would leave us around 400 to 410,000 in cost if we wanted to replace these specific 11 vehicles uh immediately. This would take three vehicles completely out of the fleet, the enterprise fleet. And the the plan that I was going to put in for the next followup would be a five-year plan on how we can phase out all of the enterprise vehicles based on oldest first or necess highest necessity first. >> Is there any benefit for the city financial wise? I know when you're in business, leasing can look favorable. you can turn over a vehicle
033quicker, >> less payments, >> and the lease payment is a total deduction >> to where if you buy it outright, you depreciate it. >> It's a great question. Oh, is is there I mean that would be the thing I would ask versus is there any hidden benefit of us leasing versus purchasing? >> We can definitely look into that. A depreciation versus >> Yeah. The the reality, Councilman, is that the the reason businesses depreciate their assets is for the tax benefit. Exactly. We don't pay taxes. >> Well, that that's and I was trying to make sure that in our bond rating or whatever if it makes a difference. >> There's really not that kind of a benefits. the benefit to some cities. Why in in what I believe some cities the reason they like going to
034the lease program particularly for their public works their white fleet is it gets them in vehicles in new vehicles every 3, four or five years depending on their lease terms and they like that they're driving around in newer looking vehicles. It has a beautifification element to it. I don't know that we have that same need here as you know an affluent community. I see what you're talking and there used to be drastic model changes about every 3 years. Well, now you can look at a 2013 versus almost a 20 and there >> hardly any difference right um in looking at like it is a newer vehicle. Um, I noticed I mean I don't know what their particular deal, but NISD leased all their buses for a while. That was the thing. And then all of
035a sudden, no, that's not such a good benefit for us. And they went out and purchased and own all their own buses. Now they pay a company to manage them, >> but they the school owns the buses. They don't lease them anymore. >> So this option would be kind of I guess you call it a hybrid to start with where we would still have some in >> with enterprise or the large majority would be still enterprise managed uh vehicles. We are talking about starting with the oldest first. >> Yeah. So only there's only a handful of >> transition, not all of them at one time. >> And that's really what we want to do is each year look at the oldest models first and feather it in. Right? The goal, you know, we have 60
036something vehicles right now. Um over the next, you know, 5 years, the goal would be to completely be off of enterprise by doing, you know, 10 to 12 each year and getting to that point. How has how has those how has the enterprise program and the fleet program as far as the city staff how has it been managed in the past? I don't know that we see evidence that it has. Okay, that's kind of I guess my word >> I think. So, Jen Jyn and Mike kind of inherited it from previous management. So, uh, >> so and and just to kind of add on to that, you all went to the enterprise leaf. We went to the enterprise lease program in 2017. We still have the 2017s that were leased in 2017. I don't know
037that we've turned any vehicles back into enterprise. >> Yeah, we've had a few. Yeah, >> but they are newer. They're not >> Okay. >> From what I'm looking at here, uh we own like what 21 vehicles and the rest of them is is lease. >> Uh no. So we own on the at first page on option one. Anything that says not enterprise, >> right, >> would be ours. This second option one is the suggested vehicles we would want to buy in replacement for option first page on option one. So I didn't mean to confuse that, but if you're looking at the option one, that is the list of vehicles. Yeah, the first page. >> Okay. First, anything that's 2008 all the way up to 2017. And it says not enterprise on this page is ours.
038>> Okay. >> That second page is just a projection of vehicles we would want to take replace with these. Yeah. >> Sorry. >> On that first page, option one. >> Yep. >> Of everything that's not enterprise. Is all those vehicles running good? I mean, is anything wrong with them? >> Yeah, they all work. We don't have a currently except for >> the 2008. >> Okay, I see it's not being replaced. Yeah, >> we already Okay. >> Any reason that one wasn't auctioned off before or just kind of got >> I think we just haven't gotten to those vehicles. I know that there's some dump trucks that we're looking at. There's a bunch of there's some other stuff at the facility that will be adding to the chief's list of auction vehicles um on top of
039what's on here as well if we move down this path. And the and enterprise was the one handling auctioning them or was it us? >> No. So anything that we own, we handle auction here. What they would handle once we turn it into Enterprise, we no longer see that vehicle. We don't know what they sell it for. We we don't have any record of they just tell us it's we'll take care of it. Give us an estimated number and let us know how much our monthly payment is going to be. So that's why Robert was kind of saying we this number if you look at the option three sticking with it in the uh current market value that second to last column is what they're telling us these vehicles worth and like Robert said some
040of them are you know >> 2530 $40,000 trucks still um well then I would love them for just write us a check for that full amount and you can have all those vehicles and we'll call it a Hey, but they won't. That's not a card they're going to play. So, >> well, and I mean the whole purpose, like we said, usually at least you turn over the cards every four or five years, but I mean like that first one there, okay, it's 11 years old. The others are eight years old. That's kind of unusual for a lease to go that long. I mean, did we renew the lease or just keep paying on it? >> So, that first one is um that F250. So, it's it's being monitored. It's it's a false trigger. It shouldn't
041be in their system. It's the same as the 2011 that I updated properly that Expedition, it was also saying in realized fleet, but it's just being monitored in their system. It's actually not one of their vehicles because we started in 2017. We wouldn't have gotten. >> But even though 17's accord, we're well past the timeline on those. We have one. >> But if we But you look at that, we're still paying a lease payment on those. >> And if we own it, I mean, as long as you have that deal, you're going to be paying the lease. It's never going to be yours. >> Sure. And that value is still I mean they're saying the estimated value is what 131 for that 2017. >> Yeah. 131. Yeah. But that's >> $20 maintenance fee. Yeah. >>
042Once again, like you said, it's not ours, right? Should we want to do something with it, it just goes back to Enterprise and they get whatever they want with it. So >> Jay, can you explain that maintenance free? Like >> once we send them out to get a maintenance to >> So if you look at the last at the the little booket booklet, Susie, do they have that? >> Yeah. So the very end of that, I added the maintenance quote that they provided us >> and you can look at that and see what the details. >> It's not in the big one. It's in the little sheet that >> Yeah, that one. Yeah. >> Sorry, I put the big ones together today because I I needed readers to look at it myself. So here. So,
043>> so there's the maintenance quote that's in there and you can see >> it's the last page. >> You can essentially see how they break it down on how many oil changes you're allowed to have, how many uh you know, tire rotations, all those things. The 2017s are well out of that maintenance timeline. Um it's my understanding. Do they still reimburse on that or we just repay? Yeah, they they cap after is it 36,000 miles? Yeah. >> 30,000 miles. There are no more oil changes available under their maintenance. So, we're off on the hook for that. >> Yeah. So, that almost look like five vehicles. >> Mhm. >> But we're still paying the maintenance fee. >> Yeah. We still pay the maintenance fee. Yeah. We pay for our own old now. >> So, the goal
044obviously is at the end of year 30,000 we trade the truck in. We get a new one. As you can see, that's not happening, >> right? So, but that kind of goes in line like with the question you asked. Who's is it being managed? Um, we probably could I don't know like be doing better or they could be doing better. I'm not sure, but as it stands right now, it doesn't look like it's in a uh a very user friendly place for the city of Nasota. If you own them, there's going to need to be even more focus and more management from the city. >> Right. Right. >> Which, like Robert said, I think the goal is to evolve that to grow the maintenance services to be able to manage more and more vehicles. If
045we're talking about, you know, 10 brand new vehicles coming in and we're doing oil changes and general tire rotation on brand new vehicles, that's manageable for us in current state. Um, when we get to 60 vehicles, that's a different conversation. Uh, but we want to grow that department to be able to manage that as we get bigger. >> What's the status of the facility where we're where we you would repair or fix? because I feel like that if we're there's lots of issues with this maintenance building over here. So that means that we're looking if we do change then we're going to have to potentially look at new equipment, new facilities, new something another. Is that something that we've thought about? Yeah, that's that's a part of the the even the discussion that we had
046at the strategic planning uh retreat was, you know, about facility uh long-term facility planning and and making sure and we we've got, you know, we do have a a repair bay there. We do have funding in this year's budget to add a lift, vehicle lift, so they can get under them, do the oil changes and those kind of things. Um but the reality is if yeah there's more than just vehicle maintenance there there's probably some attention that's going to be needed to our um public works and our maintenance facilities uh in you know in in the long run would there be or would it even be practical uh possibility of working with NISD and their auto maintenance or mechanics program that some of these kids I mean they could minor things I'm talking oil changes
047tire rotation >> certainly possible I mean >> we could certainly talk to them and see what those are we >> give them credit the kids credit >> Yep or something that would help if we don't have the whole staff to do it that we could work a partnership with them >> that was a thought that I had was also setting up some kind of internship program over the summer for those students to be able to come and work at our shop or if they wanted to allow us to have facilities used on their end, we could drop trucks off for service, do things along those lines. That was the idea that we had to >> possibly get those kids to where they're >> city, they graduate, they've worked in it, they come to work. >>
048We're on the same page there. One quick question um on option one uh on the uh uh I don't know the second page. Well, you said it was proposal, right? >> Yeah. Okay. >> So, I was just going to ask about the 2026 Toyota Camry. So that that would be the replacement for the 2008 Ford Taurus that it is currently using. Um he travels around town to different buildings to make sure that the facilities are taken care of. Um it is by far the well it's the second oldest vehicle we have in the fleet. It is working. Um uh it currently isn't labeled for the city of Navas. That's probably a good thing. Uh but it does work. It does make it around town. Um, but the idea was to replace it with a more
049reliable vehicle that would last for a very long time like that Ford Taurus has. Um, that way it's probably a vehicle we would keep for 10, 15 years, uh, for the very limited use it would be using. And specifically, that vehicle could also be used for commuting situations, uh, conferences, things like that, because it gets, you know, 35 miles to the gallon and it's a hybrid. So, >> where is the old Blues Expedition at? It is at the airport uh currently and so that vehicle >> Yeah. So that vehicle is actually on this list to be auctioned off. We currently have a truck that we have at the animal shelter uh that is a four-cylinder. Uh the bed has been replaced with a work bed. Right. So we one of the vehicles we proposed to
050replace here would take the place of that truck. We would put the bed of that truck back onto that truck and put that at the airport as our uh courtesy vehicle. It's an extended cab uh truck that could be easily replace uh could easily replace the expedition that's at the uh airport and we could get it >> Yeah, it has a brand new engine in it because it for some reason they sold us a four-cylinder when they should not have and we uh had to replace the engine because the four-cylinder couldn't handle what uh Animal Shelter was doing with it. So, >> um, the goal would be to take that expedition, auction it, put that truck as a replacement vehicle for courtesy, which should be just fine for what they need at the airport, um,
051and then give the get a new truck for the animal shelter that can handle the workload that the animal shelter needs. I think it's a pretty good idea trying to bring it buying all our own vehicles because we can replace them as needed and not every four to five years. And uh we have the equity in it >> in a leasing you never own, >> right? >> We have we have good access to auctions. I mean I'm assuming >> probably being with Houston and Brian College Station areas I guess makes it better if you got kind of a metro area in the in the mix. And then at that time you know if we buy our own vehicles so many per year we can determine whether this vehicle need to be replaced or not and
052just keep moving forward. Very similar to the maintenance service plan that I want to do for facilities. I want to prepare the same thing for the vehicles. So we know essentially how many years on average you want to keep them depending on which department they're in, how many miles we want to put on them, um tire road changes, all those things. we can start tracking those things a lot more in-house um and really come up with a game plan of how much vehicles should cost every year uh so we can kind of extrapolate that out as we grow as well. >> What do you think Jay? Uh which way do you think is the best route? >> I don't think we should be leasing anything. Uh, I think we should own what we have because
053it just to me it gives us so much more control and it gives us so much more ability to be flexible with those vehicles a lot more as well. So I I think it should all be done in house and I think we should help bring all those vehicles back in and we should expand our maintenance services operations to be able to handle the extra workload that goes in >> and the shop is going to need some kind of loving care. >> The shop the shop will be getting TLC as much as I can possibly afford to do this year. Um, and then we will also be talking about how we can expand those operations uh either in that shop or somewhere else if we can do it down the road. So, I think that's
054that's the long-term goal is to make that shop much more uh advantageous for the city. Mayor Council, I did want to also just offer um before we got off of this topic, uh we have been also as we as we have been thinking about actually purchasing vehicles um as opposed to leasing them, we have been in contact with the GMs uh here of the Ford and Chevy dealership here. Both of them are owned by E A now. Um, and they are working through the process of getting put on the the fleet government fleet sales so they can offer through the government contracting and we could actually buy local and support our local businesses. Um, don't know >> every brand. So, >> yeah. >> I don't don't know if they'll have it in place for this
055year's purchases because that is a process that they have to go through, but we've been working closely with them and they are interested in doing that. And um even if they don't sell them to us, we likely would use them for any warranty kind of thing cuz they're close and we can go in there and take the vehicles in for for warranty uh items and recalls. But uh but hopefully in the long run we get them set up as um government fleet sales and we can buy directly through them on the government contracts. >> Jake, is the suburban part of this or is it separate? >> This is an emergency vehicle. So it it was part of the one that's budgeted in this year's budget aside from the enterprise. I I will be going ahead
056with a kind of a five-year plan as far as the vehicles are concerned and putting together similar breakdowns of you know what we were project to replace next year, the following year, year after that. Uh so we can kind of stretch this out over time instead of doing it all at one time cuz I don't think we can stomach coming up with a couple million dollars to replace a bunch of vehicles. So, >> well, just just so we can make sure that that the staff has a good I mean, I think we're we're hearing haven't heard anyone say no, stay with the lease completely. Are we okay coming back to you all? Do you all are you all ready to just make whatever we buy this year buy it on our dime and not not
057add any vehicles to the lease? >> How many vehicles are we buying this year or leasing? >> It looks like this proposal option one would be the one that would would do that and it's 12, right? 11 >> 11 >> adding >> Yeah, >> that's the very It's the very last one that's on there. >> Yeah, getting them from Enterprise. So, Enterprise Enterprises proposal was 17 vehicles uh all on the Enterprise lease. >> We're adding two extra ones that weren't on there before. If you look at the bottom the last page, there are two vehicles that we wanted to add to the option three. The last two vehicles are not a swap. That's two brand new vehicles being added to the fleet through enterprise. Those are calculated in on the 11 that we are talking
058about uh buying outright for ourselves. >> Why would the janitor need a double cab? Uh so actually we are looking at a crew cab and the only reason is there are times when they have to go from this building to that building and there are there is equipment they have to take on a rainy day that is not a good idea to try to put them into a single cab truck uh to go back and forth. The reason why we are sticking with a small truck like a canyon or a Colorado is because they do have to do trash sometimes at PD and those trash bags if we're talking about putting them into a van or some kind of work van if they break there are problems with that. So that's why we kept the
059bed of the truck, but also gave them a crew cab. That way they could put equipment and stuff in that back seat if they need to on a rainy day. But we we looked at doing a smaller truck, uh, Canyon or Colorado as an option. >> Correct. >> Yeah. Well, if it were me, I would go to purchasing versus leasing. That's that's my >> Well, our our intent, there's nothing on tonight's agenda. We didn't want you to have to make a decision tonight. We just wanted to get some guidance and we're going to bring back a proposal. It sounds like we're going to bring back one that would include a budget amendment to to buy the vehicles this year and then backfill with whatever we can get from those vehicles from either Enterprise auctioning them
060or us auctioning them. uh we we'll backfill whatever we can into the fund balance, but we'll we'll start that process and then ideally next year we will have this discussion during the budget process and we will include the funds as a part of the budget process. >> And will any any needed attached equipment be handled the same way that we've been doing it before where we kind of are the ones that direct that? >> Yeah. On the list, go to option one, page two. So each one of these vehicle prices factor in the upgrades that need to be made to this truck with the the service beds and all the things that are on there. That price reflects the upgrades that are going to be done to those trucks. We added those features in whenever
061we're recording them out. So that price is pretty close to what we believe it should cost us to outfit these vehicles. I'm just I was kind of talking about the logistic side of it that >> so be something that we would >> we know what we want. I mean and it >> we'll still do the upfitting ourselves. >> Yeah. Especially when it comes to PD and the SEC the public safety vehicles. Yeah. But for instance like that last line item there that 3500 uh crew cab two wheel drive service body and liftgate. The service body and lift gate will already be installed on that truck when we receive it. >> Sure. >> Yeah. I just didn't I just want to make sure that the equipment didn't get lost in the >> Yes. transition. So now,
062uh, Jay, what you're saying is that once we go out and buy these vehicles, our old ones just not going to sit up and collect dust, anything. We all got to get rid of them. >> That's what that first page on option one is for. We want to immediately put them up for auction. And once we turn toward the new purchase, >> then we can put that towards the new purchase. So, if we can get roughly $100,000 for all those vehicles with the buyback and with us selling them, then we'll put that straight towards the new vehicle purchase. Cuz with the lease, you're at the mercy of enterprise as to when they >> So yeah. >> Yeah. >> Mhm. and um and they sell it and they sell it. Um >> um my final question
063here is u and buying these new trucks and everything. Um, do we go out for bids for them or do uh we would probably buy them through a through one of the government contracts, HGAC, buy uh one of one of the co-op tips uh whichever co-op we can get the best pricing from. Uh and and I think we're already reaching out to a couple different dealerships and like I said working with the local dealerships here to try to get them set up. Um, and we will give them a chance to to give us a price uh that matches the government contracting prices. The the reality is if they're not set up through through the manufacturer as a government dealer, they just can't compete. It's hard for them to to to compete at that level. And
064so likely, you know, years to come, they'll be set up for that. Just don't know that they're going to get it done in the next couple months and be ready for an order this year. Yeah, I was just thinking because the uh both of the dealerships here are own over in Brinham also and I think the school district did some stuff with them and they may have something set up over in that you know since owned by the same people. >> Yeah. >> And if it was warranty if vehicles were in warranty we were using local dealerships. >> Correct. >> I assume. Okay. >> And we still would do that, right? So we bought a Chevy from whatever dealership we got it from. We would still keep it here for warranty repair work. >> Yeah.
065>> There's no reason to drive it across. >> Yeah. >> So, >> what's the difference between option one and option two? >> Option two would be we just give back what we buy. We basically sell back the 2017s and we get whatever money we can with those and we just replace those three vehicles. So, we're not talking about all the old vehicles that we own. We would still hang on to them and use them for whatever we want to do. It's a It's essentially just a lighter number. Uh still keeping the ones that we own in in our fleet. So the 2008s, the 2014s, the 2004s, hanging on to those vehicles and using them until they, you know, drive them on the ground or fall apart or whatever. >> They're already there. >> Yeah. I
066mean, we they're already at that point where they're old. I just put option two on there just to say if we just want to do the lease vehicles, this is what it would look like. How much it would cost? >> Good. >> I think so. >> You have direction on. >> We will bring it back to you. Yes, sir. Good. >> Thank you. Thank you. >> Yes sir. Thank you guys. >> We are joining