Council authorizes Enterprise Fleet Management agreement to replace and manage light-duty fleet

Council authorized staff to finalize and the mayor to execute necessary agreements with Enterprise Fleet Management to implement a fleet strategy that combines equity leases for near-term replacements and outsourced maintenance-management for light-duty vehicles.

Enterprise representatives presented a plan recommending the city replace 39 vehicles in year one using equity leases (a lease that builds equity without mileage or wear-and-tear penalties) and enroll 257 light-duty vehicles in a maintenance-management program. Company presenters said the alternative to leasing would be a cash purchase that they estimated at about $1.62 million in year one. "If the city was to purchase those outright... that would be a year 1 impact of $1,620,000. If they were to lease those 39 vehicles, the year 1 cost would be $293,000," the presenter said.

Enterprise described operational benefits of the maintenance program, including consolidated billing, local vendor networks and centralized audit review of repairs. Staff emphasized the program could yield maintenance-administration savings and better replacement planning, while the council and city attorney said final contract language and cost exhibits should be finalized before execution. The city lawyer confirmed that council's action authorized the mayor to execute agreements subject to final purchasing and legal review.

Council members voted to authorize the mayor to execute the agreements upon final review; staff said delaying could affect vehicle availability and manufacturer incentives tied to current-year purchases.

Implementation: staff will finalize contract exhibits, confirm insurance and pricing terms, and return executed agreements and a replacement schedule to council as required by purchasing procedures.