This is for Contract Modification No. 1 for the 5-year equity lease with Enterprise Fleet management in the amount of $2,335,564. The proposed amount will cover any additional vehicles added to the lease agreement as well as the differences in the estimated cost vs the actual cost for units that were previously approved. This modification will also extend this year's agreement to December 31, to align the contract with the City's calendar year. Under the agreement, Enterprise will be responsible for the maintenance of the leased vehicles, which will allow the City to focus on maintenance and repairs of public safety and heavy-duty vehicles. It will result in City employees driving newer, more reliable vehicles with less downtime, dropping the City's average vehicle replacement cycle from 13.7 years to 5 years. The average costs of the City's light-duty fleet are expected to drop from 46 cents per mile to 40 cents per mile. The City can exit the lease agreement at any time.

This contract was originally approved by City Council on May 13, 2021, in the amount of $1,492,982 annually. The total amount of this annual contract including this modification is $3,700,156.00.

Approval.