The City of Palo Alto, Calif., has decided to go through with the request for proposal (RFP) process to lease 250 vehicles in its fleet. In addition, the RFP asks companies that submit proposals to include plans for maintenance services and full management of the City’s light-duty/transport fleet. Palo Alto’s City Council voted to go ahead with the RFP process in mid-December, 2011, according to City Fleet Manager Keith LaHaie.

The plan doesn’t call for eliminating fleet maintenance but instead would shift technician responsibilities to the maintenance and repair of more complex, and demanding, vehicles and equipment. The plan also states that outsourcing light-duty maintenance may not be cost-effective unless the contractor handling maintenance will pick up and deliver vehicles.

The decision comes after an April 2010 report by the City Auditor’s office, which recommended the City optimize the fleet, improve fleet utilization, and purchase replacement fleet vehicles that help the City meet its sustainability goals.

According to the plan from the City, staff focused on vehicles in the light-duty and transport segments of the fleet (the 250 vehicles mentioned above). The plan states that the majority of the light-duty vehicles in the leasing program will be assigned to a centralized pool rather than to individuals.

In addition, the City’s plan states the RFPs should include replacing City-owned vehicles, as part of the lease proposal, with alternative-fuel vehicles, such as hybrids, compressed natural gas-fueled vehicles, and plug-in electric vehicles.

If the City accepts a leasing and/or maintenance proposal, the City’s plan states it will focus initially on leasing enough vehicles to replace those in the City’s centralized pool, after consulting with vehicle users. The City said it could expand the leasing program as other vehicle replacement needs come up, and that it will consider leasing more of the fleet as an alternative to ownership. Other areas the plan states the City will consider is acquisition of sedans for Police Investigative Services as well as light trucks and vans used by field technicians and supervisors.

By Greg Basich