2025-10-21 CC Agenda Packet - Additional Information related to Item D9 - MatrixMATRIX
CONSULTING GROUP
October 27, 2025
Michael Allen
Community Development Director
City of El Segundo
350 Main Street
El Segundo, CA 90245
Dear Mr. Allen:
Matrix Consulting Group, Ltd. is pleased to present our best and final offer (BAFO) to conduct a
comprehensive citywide staffing assessment for the City of El Segundo. All aspects of our initial
submittal remain valid as originally proposed except as specifically modified by the following points:
Comparative Survey: We will include in our project task plan the following scope of work to conduct
a high-level comparative assessment of budget and staffing allocations_ By reallocated hours among
the project team, we are able to incorporate this additional scope in our original proposed budget of
$99,900 for this engagement.
The project team will conduct an assessment comparing key organizational characteristics of the
City of El Segundo against five comparable local government entities in the greater Los Angeles
metropolitan area. The specific communities utilized will be approved in advance by the City. This
comparative will include the following elements: Overall organizational structure, annual budget
allocations for each department, total staffing allocation by department, and allocation of specific
service functions by department/division. This comparative benchmarking effort will provide
insights into both resource and staffing allocations and typical organizational structures.
TASK RESULT
Comparative benchmarking assessment comparing the City of El Segundo's
organizational structure, budget and staffing allocations against five comparable
local governments.
• Fleet Management Assessment: As requested, we have proposed a fleet management assessment
evaluation as an optional service. The fleet management assessment will include a review of existing
fleet operations, right -sizing study, replacement plan development, and outsourcing analysis. The
budget for the fleet assessment would be a not -to -exceed fixed price of $34,900 as shown in the
following budget.
MATRIX CONSULTING GROUP
187S S Grant Street, Suite 960
San Mateo, CA 94402
650-858-0507
TASK
Fleet Lead
1. Fleet Profile
4
2. Utilization Review
12
3 Replacement Plan
16
4.Outsourcing Analysis
12
5, Final Report
8
Fleet Analyst Total Hours Total Fee
16
20
$3,760
38
50
$9,530
24
40
$8,040
24
36
$7,080
16
24
$4,720
Total Hours 52 118 170
Hourly Rate $240 $175
Professional Fees $12,480 $20,650 $33,130
Travel Expenses $1 , 770
Total Project Cost $34, 960
A more detailed task plan for the fleet management assessment is provided on the following pages.
Should you have questions or require additional information, please let me know. We look forward to the
opportunity to work again with the City of El Segundo. I can be reached at the address and phone
number below or at anennington matring.net.
XcLa�6-
ALAN D. PENNINGTON
President
Matrix Consulting Group, Ltd.
MATRIX CONSULTING GROUP
1875 S Grant Street, Suite 960
San Mateo, CA 94402
650-858-OS07
Fleet Management Assessment Scope of Work El Segundo, CA
PROJECT TASK PLAN
PROJECT TASK PLAN
We will accomplish all items requested in the RFP through the following activities or tasks.
TASK 1: PERFORM A CURRENT STATE ANALYSIS
This task involves reviewing data as it is submitted and meeting with stakeholders to build an
understanding of the fleet organization and create a fleet profile. We will build a detailed current
inventory listing fleet data by department, year, and model, which will be the basis for future studies. The
inventory will also reflect unit and VINs, purchase date, current odometer, anticipated mileage, and
capital and operating costs.
In addition to the inventory, the Fleet Profile will provide an overview of the organization, job descriptions,
facilities, budget, policies, and use of technology. A draft fleet profile will be submitted to allow the City to
edit or add to the information collected. The report will conclude with a list of challenges and
opportunities noted during early analysis. The final version of this assessment will be the baseline upon
which all future deliverables are built.
TASK RESULT
We will create a Current State Assessment Report documenting the current inventory
and staffing as well as existing Fleet Services operational policies and processes.
TASK 2: CONDUCT A RIGHT -SIZING STUDY
We will use the data from the fleet profile and interviews with fleet users/managers to understand how
fleet assets are used and identify opportunities to right -size the fleet and right type individual assets. We
will comprehensively review the utilization and allocation of all fleet assets. We closely follow the U.S.
federal government's approach to fleet rightsizing, known as the Vehicle Allocation Methodology (VAM).
This involves several steps:
1. Non -emergency response assets: Review the data to identify the average utilization for each class of
vehicles and determine utilization thresholds for each class.
2. Emergency response assets: Understand the number of shifts, staffing, vehicles per shift, and
reserves for each functional area.
3. Interview supervisors/managers who best understand the use of each asset (non -emergency and
emergency response). Clarify whether the asset is the right -type for the job.
Matrix Consulting Group
Fleet Management Assessment Scope of Work EI Segundo, CA
4. Identify whether the usage patterns justify an alternative fuel vehicle such as electric vehicles (EVs),
plug-in hybrid electric vehicles (PHEVs), and "conventional' hybrid electric vehicles (HEVs) or whether
other sustainable fuels may be suitable for the asset.
5. Determine a disposition for each asset and a common specification for classes of assets.
Representative questions used in interviews include:
Utilization
• What is the main job this vehicle performs?
• Describe how this supports the organization's mission.
• Does the vehicle need special equipment to accomplish the tasks?
• What is the normal/maximum daily range of the vehicle?
• How many people will be transported per trip on a regular basis?
• How much and what type of cargo will the vehicle haul on a regular basis?
• Is the vehicle shared with other employees or other departments?
• Describe any emergency response requirements.
• How many days per week and hours per day is this vehicle required?
Empirical data and interview results will be compiled and analyzed to determine the current use of the
asset and its future disposition_ From our analysis, we will recommend one of the following outcomes for
each vehicle in the fleet:
Retain
Keep current unit in service and replace according to a multi -year replacement plan
based on optimum lifecycles.
Replace
Asset is overdue for replacement and should be replaced immediately.
Right -Type
The asset is not the best for the job and should be replaced with a different asset at
the end of the current lifecycle.
Eliminate
Utilization does not justify retention of the asset.
Right -Fuel
Usage patterns indicate that the asset is a candidate for alternative fuels.
Other
May include borrow, pool, rent, reimburse or additional analysis.
We will provide a complete record of the analysis criteria, the recommendation for each asset in the fleet,
and its impact on future replacement planning.
In addition to these final dispositions, we will measure the impact of the recommended changes in terms
of capital and operating budget and emissions reductions.
TASK RESULT
We will provide a Utilization Report.
Matrix Consulting Group
Fleet Management Assessment Scope of Work
TASK 3: CREATE A FLEET REPLACEMENT PLAN
EI Segundo, CA
In Task 3, we will use our fleet modelling tool to create a ten-year replacement plan that reflects when
each asset should be replaced and accounts for the costs of that replacement.
Equipment capital costs tend to decline over time (because
annual depreciation is highest in the initial years of
ownership), while operating and maintenance costs
increase. The combination of these two basic curve
functions results in a "U-shaped" total cost curve. The
economic theory of vehicle and equipment replacement
predicts that vehicles and equipment should ideally be
replaced during the flat portion of the curve, when annual
operating costs begin to outweigh capital costs. Replacing
an asset at this point produces the lowest lifecycle costs.
The chart to the right, which is from APWAs publication
"Managing Public Equipment", illustrates this concept.
Total
Operating 8 Capital
Maintenance
Time & Utilization
The total cost curve can vary significantly for different types of equipment. Factors that impact total
costs and lifecycle timing include purchase prices, differences in operating environments, utilization
levels, maintenance practices, rates of depreciation, etc. Consequently, replacement criteria must be
developed for all types of equipment in a fleet.
The move to optimum lifecycles will result in savings in TCO. Our model will demonstrate the savings
potential for various levels of spending. We will also generate a multi -year replacement plan for the fleet
reflecting the new recommended lifecycles. In a recent example, a client had a plan that looked like the
graph below:
Replacement Plan - Current Practices
$7,000,000--
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
This plan made for inconsistent budget requirements. We recommended a levelled plan that provided
more predictability for budget needs.
Matrix Consulting Group 5
Fleet Management Assessment Scope of Work
Current Replacement Plan and Levelled Plan
$9,000,000
$8,000,000
$7,000,000
$6,000,000 - ,-----
EI Segundo, CA
$5,000,000 - — - - - - -- -
$4,000,000 — —
$3,000,000 Expected Annual Capital Expenditure of $2.5 million
$2,000,000 -
$1,000,000 -
$- ■ -
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Current ■ Leveled
In addition to reviewing acquisition and replacement, we will determine whether the methods used to
dispose of vehicles and equipment are timely and yield the best rate of return.
TASK RESULT
We will create a replacement plan for the City's fleet.
TASK 4: EVALUATE OPPORTUNITIES FOR OUTSOURCING
In this task we will consider alternatives to providing inhouse maintenance_ Maintenance outsourcing
can follow several different models:
• Limited outsourcing. Best -in -class fleets typically outsource 10-15% of maintenance. The repairs that
are outsourced are typically specialty work beyond the capabilities of the shop.
• Third -party vendor on site. A maintenance company will operate out of a City -owned facility and
provide parts, mechanics, tools and equipment as well as supervisors to manage the shop.
• City -managed outsourcing to off -site vendors. The City will contract with a variety of vendors for all of
their maintenance needs. The City will manage which repairs are handled by which vendors.
• Fleet Management Company (FMC) managed outsourcing. The City will contract with an FMC who
will operate a call center to coordinate all maintenance requirements.
Matrix Consulting Group 6
Fleet Management Assessment Scope of Work
El Segundo, CA
We will do a cost -benefit analysis of each option and recommend the strategy best suited to the City
based on costs, levels of service and control.
TASK RESULT
We will provide a chapter in the final report reflecting the outsourcing cost -benefit
analysis.
TASK 5: COMPILE A FINAL REPORT AND IMPLEMENTATION PLAN
Upon the conclusion of the preceding tasks, we will prepare a detailed report summarizing the results of
each of the previous work tasks and clearly delineating the recommended changes and associated
costs. The report will be structured as follows:
• Executive Summary
• Introduction, Methodology, and Project Approach
• Fleet Profile
• Utilization Review
• Replacement Plan
• Outsourcing
• Recommendations Summary and Prioritization (Implementation Plan)
This report includes specific, actionable recommendations for improvement and an implementation plan.
Once the draft report is complete, we will submit it to the City Project Lead and work with them to clarify
any questions. Once the report is checked for factual accuracy and comments returned to our project
team, we will make the necessary edits and produce a final version.
TASK RESULT
We will provide a draft and final report in the format described.
Matrix Consulting Group 7