Item 39: Equipment & Maintenance Agreement

[COSM_Admin]

Consider approval of Resolution 2021-201R, approving an agreement with Enterprise Fleet Management, Inc. through the Texas Interlocal Purchasing System (TIPS) for the
lease and maintenance of thirty-five vehicles and the purchase of miscellaneous equipment and maintenance for use by several City departments over a five year period in the
estimated amount of $988,836; authorizing the City Manager or his designee to execute the agreement on behalf of the City; and declaring an effective date.

 

[MDerrick]

The City currently leases 209 of the City’s 438 light vehicle fleet. For FY 22, the City will realize a cost savings of $29,395.92 from the previous year. Please explain? Is this cost savings due to using Enterprise Fleet, or did we realize additional cost savings this year due to contract with Enterprise (lowered costs, less vehicles this year)?

Thanks!

 

[COSM_Admin]

Response to CM Derrick, provided by Interim Director of Public Works. Sabas Avila:
The City is able to realize these cost savings by utilizing the Enterprise contract and leveraging Enterprise’s economies of scale. Using Enterprise’s national resale network, the City is able to receive top resale values for each vehicle returned to Enterprise. As an example, the City returned a 2016 truck to Enterprise. Enterprise was able to resale the truck for $22,967.90 and returned the equity back to the City. The equity of $22,967.90 was applied to the new truck lease. As a result, the new monthly lease payment was reduced from $508.38 to $123.31. The total cost savings from equity credits amounted to $29,395.92 this fiscal year.