Title
SECOND AND FINAL READING OF AN ORDINANCE AUTHORIZING AN INCREASE IN SPENDING ON VEHICLE LEASES FOR THE YEAR 2023 AS PART OF THE CITY’S MASTER LEASE PROGRAM AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT
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Summary & Background
In November of 2017, the City Manager entered into a Master Equity Lease Agreement with Enterprise Fleet Management for the ongoing procurement of the City’s Fleet as existing vehicles were retired and replaced, or for fulfilling new or additional vehicle requests through the budget process. The Master Equity Lease Agreement itself, does not have a termination date or specified term. However, it does specify that no individual vehicle lease shall exceed a five (5) year term (which the Fleet Division complies with).
In addition to the execution of the Enterprise Master Equity Lease Agreement, the City Council passed Ordinance 2143 in November 2017 authorizing the expenditure of $3,548,125 for lease payments on the initial tranche of vehicle leases (5 years).
During the course of calendar year 2021, it was identified that the initial expenditure amount authorized by Ordinance 2143 would be insufficient to meet all required lease payments for the due to unforeseen inflationary impacts. As a result, in November 2021, City Council passed Ordinance 2358 authorizing additional expenditure not to exceed $5,968,985.72 to fund the vehicle leases. Upon passing Ordinance 2358, the City Council directed staff to:
• Conduct an audit of the efficacy of the Fleet Program
• Create an RFP if the decision is to continue leasing vehicles to allow the best price and other competitors to bid
• Improve sustainability of fleet through introduction of electric vehicles and other fuel alternative vehicles
As per direction by City Council, staff contracted with Innovative Fleet Technology to conduct a comprehensive evaluation of the entire fleet operation, including all specific City Council requests as noted above.
The analysis conducted by Innovati...
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