Title
AN ORDINANCE AMENDING ORDINANCE NO. 2143 TO INCREASE THE AUTHORIZED TOTAL EXPENDITURE AMOUNT FOR THE LEASING OF VEHICLES UNDER THE CITY’S MASTER LEASE PROGRAM AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT
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Summary & Background:
Background
• In 2017, City Council authorized the City to enter into a Master Equity Lease Agreement with Enterprise FM Trust, “Enterprise”
• The purpose of this agreement was to provide for a method to replace vehicles/equipment that had surpassed its cost effective useful life-span with more modern, safer, and efficient vehicles/equipment without incurring significant capital outlay for the purchase of new(er) vehicles/equipment
• The City currently utilizes approximately 135 vehicles leased from Enterprise pursuant to the Agreement in order to carry out and perform various necessary City functions
• The current Agreement’s five-year term runs through November 2022 and the total cost for the leasing of vehicles necessary for City operations is currently projected to exceed the $3,548,125 maximum amount previously authorized by the City Council by end of Feb 2022 (based on revised delivery schedule of 2021 order deliveries)
Fleet Overview
• City operates a fleet of approximately 400 units consisting of passenger cars, pick-ups, light, medium and heavy equipment, parks operations equipment, and large tandem trucks
• Of these 400 units, 224 are lease eligible
• At present - of the 224 lease eligible units
o 134 units are currently leased from Enterprise
o 17 leased units are on order, model year 2021, yet to be delivered
o 31 units scheduled to be leased, starting in 2022
o 42 units to remain as City owned
Expenses
• Maximum allowable expenditure under the current authorization is $3,548,125
• Anticipated total lease program expense through November 2022 is $5,968,895…breakdown as follows;
o $2,946,693 Expense as of 8 August 2021
o $2,193,875 Projected Expense Aug 2021 - Nov 2022
o $544,180 Projected Expense of 2022 Add...
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