Recommend approval of a five-year equity lease agreement for fleet vehicles from Enterprise Fleet Management in the amount of $1,492,982. Over five years, the City of Savannah Fleet Services Department will sell 559 light-duty owned vehicles and replace them with new leased vehicles. In the first year of the agreement, the City will lease 303 vehicles, including 21 electric and 91 hybrid vehicles, which will mark the largest addition of alternative fuel vehicles in Savannah's history. The move will reduce fuel consumption of the City's light-duty fleet by an estimated 20%, and reduce CO2 emission by 23%.

Under the agreement, Enterprise will be responsible for 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. Average costs of the City's light-duty feet 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 lease agreement was made through a cooperative purchasing agreement with Sourcewell. Cooperative purchasing is authorized as an appropriate procurement method in Division 10 Section 4-4152 of the City of Savannah’s purchasing ordinance.

The contract was competitively bid by Sourcewell and awarded to Enterprise Fleet Management. 

Enterprise Fleet Management (St. Louis, MO)^(D)           $1,492,982

(D) Indicates non-local, non-DBE business.

Approval