Item Coversheet


CITY OF KYLE, TEXAS

Authorization to Lease 9 Vehicles From Enterprise Fleet Management

Meeting Date: 3/6/2018
Date time:7:00 PM

Subject/Recommendation:
Approve a leasing order to ENTERPRISE FLEET MANAGEMENT, INC., for a total of nine (9) new vehicles for various City departments and approve the resale of two (2) City-owned vehicles under the Master Equity Lease Agreement authorized by City Council. ~ Perwez A. Moheet, CPA, Director of Finance

Other Information:

On October 17, 2017, the City Council considered and approved the Master Equity Lease Agreement with Enterprise Fleet Management for leasing new vehicles and the disposal of City's used/surplus vehicles.

 

The approved budget for FY 2017-18 included funding in the amount of $125,000.00 for the purchase of five (5) vehicles as follows:

 

City Department  Type of Vehicle  Approved Budget
 Building Inspection     1 Ford 150 Pickup     $25,000.00
 Finance - Utility Billing     1 Ford 150 Pickup     $25,000.00
 Information Technology     1 Ford Cargo Van     $25,000.00 
 Public Works     2 Ford 150 Pickup 

    $50,000.00

         

Since the Master Equity Lease Agreement has been entered into by the City with Enterprise Fleet Management, the City is leasing new vehicles rather than purchasing.  The leasing option reduces the upfront cash required to add vehicles to the City's fleet.  The City is now able to add nine (9) new vehicles for an annual lease cost of $88,482.48 that are needed for various departments as follows:

 

City Department Type of Vehicle Annual Cost Lease Term
 Police     2  Chevrolet Tahoe     $38,360.40      52-Months
 Building Inspection     1  Ford 150 2WD Pickup     $  5,779.68     60-Months
 Finance - Utility Billing     1  Ford 150 2WD Pickup     $  5,779.68     60-Months
 Information Technology     1  Ford Explorer     $  6,469.44     60-Months 
 Public Works     3  Ford 150 4WD Pickup     $20,275.92     60-Months
 Public Works     1  Chevrolet 3500HD 4WD Truck      $11,817.36     60-Months

 

The two City-owned vehicles that will be disposed of (sold) under the Master Equity Lease Agreement are as follows:

 

 City Department Type of Vehicle Mileage
 Utility Billing (Meter Tech)     1  2008 Ford 150 2WD Pickup     162,000
 Public Works     1  2004 Ford 250 2WD Truck     114,000

 

The following supporting documents are attached to provide complete information:

 

  1. Enterprise Lease Order & Pricing for Nine (9) New Vehicles
  2. Enterprise Resale Pricing for Two (2) Used City Vehicles
  3. Budget Comparison Analysis
  4. Master Equity Lease Agreement
  5. Amendment to Master Equity Lease Agreement
  6. Self-Insurance Addendum to Master Equity Lease Agreement

 

 


Legal Notes:

Budget Information:

A Budget Comparison Analysis is attached in lieu of a Fiscal Note due to funding provided from multiple City department budgets and multiple funding sources.


ATTACHMENTS:
Description
Enterprise Lease Order & Pricing
Enterprise Resale Units
Budget Comparison Analysis
Enterprise Master Equity Lease Agreement