Monday, March 31, 2003 | 11:13 a.m.
CARSON CITY -- Some legislators say private business can often operate more cheaply than the state.
But that's apparently not true when it comes to running a motor pool.
Five companies bid to provide rental cars to state employees in Las Vegas, Reno and Carson City. The lowest bid was 50 percent higher than the state's costs.
"This is a no-brainer," state Budget Director Perry Comeaux said, adding there won't be a change in the present system.
But Sen. Sandra Tiffany, R-Henderson, said the issue wasn't closed. Tiffany, who heads a Senate-Assembly subcommittee on general government, said she wanted to examine the bids to make sure the comparison was "apples to apples."
"This is still a legislative decision," Tiffany said. "All the information is not in yet."
A suggestion Tiffany and others have made in the Legislature is that the state, strapped for cash, might privatize its motor vehicle pool from which state employees draw their vehicles to travel on state business.
The state put the issue out to bid and five companies submitted proposals in February.
Comeaux said Friday that an evaluation team examined the bids and found the lowest, from Alamo, would cost $4.2 million a year, compared with the state's cost of $2.8 million. That would mean taxpayers would be hit with another $1.4 million a year in travel costs.
The state motor pool charges agencies $28.45 daily for a compact car. The bids from private companies ranged from $31 to $44 daily for a compact.
The monthly rate for a compact from private companies ranged from $580 to $960. The state rate was $342.
Comeaux said Gov. Kenny Guinn has decided to maintain the state operation, which has a fleet of about 800 vehicles.
The motor pool rates "are designed to recover what their actual costs are, including depreciation of the vehicles," Comeaux said. "They are not saying they will rent to us for less than cost.
"Their proposal includes their facility costs, staff costs, vehicle depreciation, all operating costs including gasoline and maintenance of the vehicles, utilities for the building, everything."
Comeaux said the daily rates proposed by the private bidders did not include gas costs.
"I presented all this to the governor and he arrived at the same conclusion. Our decision is we're going to keep it on," Comeaux said.
He also said the state's cost will cover the move from its present location near McCarran International Airport to a new site. Comeaux said the airport authority is making the state move. Originally the state was supposed to be out of the present site by September or October of this year.
"Now we're hearing it will be December of '04," he said.
But Tiffany questioned whether the cost of a new site was included in the calculations. She said it will cost the state $19,000 a month to lease a new location. She said one site under consideration is an 8,500-square-foot lot formerly used by Thrifty Rental Cars.
Tiffany also questioned whether the state included the total fleet costs and asked to see the requests for proposals the companies submitted "to examine the bids submitted to see if fair comparisons are made."
Asked if the Legislature might overrule Guinn, Tiffany, said, "The governor is pretty powerful. I can't say we would override."
But she added, "I don't see the issue as closed."
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