Title
Consider recommendation from EAA staff to approve contracts with Enterprise FM Trust and Enterprise Fleet Management, Inc. for the lease and maintenance of EAA vehicles, in an approximate amount of $78,000 for the initial nine proposed vehicle replacements.
Body
STAFF RECOMMENDED MOTION:
Move the board approve separate contracts between the EAA, Enterprise FM Trust and Enterprise Fleet Management, Inc., for the lease and maintenance of EAA vehicles, and authorize the General Manager to execute the contracts.
SUMMARY:
The purpose of this agenda item is for the board to consider an EAA staff recommendation to approve contracts with Enterprise FM Trust and with Enterprise Fleet Management, Inc. (collectively, Enterprise) for the leasing and maintenance of vehicles to be used in EAA operations.
Historically, the EAA purchased vehicles with the intention of replacing the vehicle after 8 - 10 years of service or 100,000 miles driven. Operating an aged fleet over time incurs increased repair/maintenance costs, increased fuel costs due to less fuel efficiency, and an aged vehicle's inoperability with new technology/safety implementations. Currently, the EAA has 23 vehicles in its fleet with 13 of those vehicles over 8 years old with several incurring increased repair and maintenance costs.
Under the Enterprise leasing model, the EAA will be able to refresh the fleet through planned vehicle leases, decrease and stabilize repair/maintenance costs, and provide safer/more reliable vehicles for EAA staff to drive. The average annual savings once fully implemented is estimated to be about $85,000. Leveraging an open-end lease maximizes cash flow by recognizing equity from vehicles sold. By shifting from purchasing vehicles to planned vehicle leasing under this Enterprise model, the EAA will be able to replace 9 of its oldest vehicles within the first year, and ultimately replace all 23 vehicles of the fleet with newer, safer, and more efficient models over t...
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