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Sierra Madre council authorizes up to $1.811 million master lease for fleet replacement
Summary
Council approved a master lease agreement with Enterprise Fleet Management to replace aging vehicles, standardize maintenance and plan phased electrification where infrastructure allows; the agreement is flexible and the city will decide the scope and timing of vehicle replacements.
Sierra Madre
The City Council voted unanimously to authorize a master lease agreement with Enterprise Fleet Management for fleet replacement and management services, not to exceed $1,811,000. The agreement is intended to modernize the city's light-duty fleet, standardize maintenance, and allow a multi-year replacement schedule that can incorporate electric vehicles when charging infrastructure is available.
Enterprise representatives described an open-ended equity lease model that aims to shift the city toward a five-year replacement cadence for light-duty vehicles, improve safety features and consolidate maintenance, telematics and fuel reporting. "Every account receives a client strategy manager," Leo Reyes of Enterprise told the council, describing a single point of contact and a bundled service that can include telematics, maintenance, warranties and short-term rental replacement while vehicles are in service.
Council discussion focused on the financing mechanics, how equity at resale is handled, and the pace of electrification. Enterprise said the open-ended equity lease is structured so monthly payments go toward the city's principal balance and the city retains decision authority at replacement time; vendors will assist with resale timing and analysis. Staff and vendors advised that charging infrastructure is a gating factor for large-scale electrification and recommended phased deployment tied to infrastructure readiness.
The council also discussed recent grant funds earmarked for police vehicles and whether those acquisitions should be purchased outright or included in the leasing program. Staff is evaluating grant restrictions and will advise council on the most efficient approach for police vehicles.
Next steps: Staff will finalize contract execution and coordinate a phased implementation that prioritizes the oldest vehicles and those lacking modern safety features. Annual reviews with Enterprise will allow the city to adjust the replacement schedule and vehicle types over time.
