Westminster City Council
SUBJECT
Title
Leasing of City Vehicles through Enterprise Fleet Management.
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From: Jake Ngo, Public Works Director
Requested by: Administration
Prepared by: Scott Maestrejuan, Garage Superintendent
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RECOMMENDED ACTION
Recommendation
Approve a five-year agreement with Enterprise Fleet Management for the leasing of City vehicles in a not-to-exceed amount of $845,000 per year, for Fiscal Year 2026-2027 through Fiscal Year 2030-2031, for an aggregate amount of $4,225,000.
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BACKGROUND
The City began leasing vehicles through Enterprise Fleet Management (Enterprise) in 2012 and has steadily increased the number of vehicles to replace City-owned vehicles. The current agreement with Enterprise will end on June 30, 2026. The City plans to continue leasing 102 vehicles for Fiscal Year 2026-2027, which includes 54 light trucks, 13 sedans, 17 vans/SUVs, and 18 police patrol vehicles. For Fiscal Year 2026-2027, seven police hybrid and one K9 hybrid vehicles have been ordered and are awaiting delivery.
As a result of the leasing program, vehicle replacement charges have been reduced for all city vehicle users. The acquisition of newer vehicles results in reduced maintenance costs, staff time, fuel consumption, and updated safety features and technology.
In the last twelve months, staff received an estimated $293,000 in equity from the resale of the previously leased vehicles. This equity will be applied to the newly ordered eight hybrid police vehicles and police equipment that will be delivered later this year to greatly decrease the capital cost of the new vehicles. Ultimately, this will save the City approximately $176,000 over the course of the leasing of these vehicles. The rest will be applied to new upcoming vehicle acquisitions.
Enterprise has been awarded Contract #030122-EFM, effective May 4, 2022, under the Sourcewell Cooperative purchase program. Sourcewell is a government agency and cooperative purchasing organization that streamlines the procurement process for government, education, and nonprofit entities. It offers pre-negotiated, competitively solicited contracts with vetted vendors, allowing public agencies to save time and money without undergoing the procurement process.
Per 3.44.080 of the Westminster Municipal Code, the City is authorized to enter into contracts where the services, supplies, and equipment are procured by participation in any purchase under a Federal General Service Administration (GSA) contract, California Multiple Award Schedule Contract (CMAS), leverage purchase agreement, or similar agreement or process utilizing a valid competitive bidding process.
Approximately 50 cities throughout the State use the Enterprise leasing program, including surrounding cities such as Garden Grove, La Palma, Fountain Valley, Fullerton, Tustin, Cypress, and Placentia.
FISCAL IMPACT
Funds are budgeted in Fiscal Year 2026-2027 budget under Fund 700-Equipment Replacement Fund, “Equipment Rental,” Account Number 58000-44050.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The continued leasing of City vehicles has proven successful in previous years in reducing vehicle replacement charges to all City vehicle users. It has also resulted in cost savings for the City by reducing maintenance costs, staff time, and fuel cost by using newer more efficient vehicles.
ATTACHMENTS
1. Enterprise Master Lease Agreement
2. Authorized Signer Form
3. Sourcewell Contract Documents
4. Current Lease Prices/Vehicle
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager