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Agenda Item: 15(a) |
Prepared By: Joe Parrilli, Manager |
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Business: New Business |
Department: Fleet and Facilities |
Subject:
Title
Award of Contract to Enterprise Fleet Management Inc. to Move from Purchasing Fleet Vehicles to a New Lease Program - Joe Parrilli, Fleet and Facilities Manager
Body
BACKGROUND:
The City of Marco Island currently purchases fleet vehicles outright, resulting in large capital investment, inconsistent replacement cycles, and rising maintenance costs for aging vehicles. In response, staff have evaluated alternatives and identified Enterprise Fleet Management Inc. as the best option to transition to a leasing model that is more cost-effective, flexible, and operationally efficient.
Enterprise Fleet Management Inc. offers a full-service fleet leasing program under Sourcewell Contract #030122-EFM, including vehicle acquisition, routine maintenance, and resale management. Transitioning to this lease model will allow the City to modernize its fleet, standardize vehicle replacement schedules, and reduce both downtime and long-term maintenance expenses.
FUNDING SOURCE / FISCAL IMPACT:
The lease program will be funded through a combination of:
• Reallocation of each department’s vehicle purchase funds into the City’s Debt Service Fund to centrally manage lease obligations
• Proceeds from the sale of the City’s existing fleet vehicles, which will offset initial lease costs and help stabilize transition expenses
This new structure provides several advantages:
• Reduces large upfront capital expenses in departmental budgets
• Establishes predictable, manageable annual lease payments
• Supports centralized fleet planning and oversight
• Enables better vehicle lifecycle management and cost forecasting
Future lease payments will be built into the Debt Service Fund’s long-term obligations, with contributions from departments based on vehicle usage and assignments.
PUBLIC NOTICE REQUIREMENTS: N/A
NOTICE APPEARANCE DATE(S): N/A
RECOMMENDATION:
Staff recommends approving a contract with Enterprise Fleet Management Inc. to transition the City’s fleet strategy from purchasing to leasing.
POTENTIAL MOTION:
“I move to authorize the City Manager to execute a contract with Enterprise Fleet Management under Sourcewell Contract #030122-EFM, to transition the City’s vehicle procurement from purchasing to leasing.”