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BACKGROUND The Operations Services Department manages a fleet of 239 vehicles assigned to various City departments including public safety. In 2014, the City partnered with Enterprise Fleet to lease a portion of the City's fleet. Initially, a total of 109 vehicles were scheduled to be replaced as part of the leased fleet over a 5-year period. These vehicles included utility body trucks for maintenance operations, pool vehicles, unmarked police vehicles and executive vehicles. To date, there are a total of 56 leased vehicles, 29 of them are utility body trucks. DISCUSSION After leasing vehicles from Enterprise FM for six years, staff has determined that the leasing of some vehicles is not cost effective, particularly utility trucks which require specialized outfitting. Due to changes of the manufacturer specifications of new truck cab and chassis, the utility boxes and outfitting for existing trucks could not be installed on the newer trucks. Depending on the operation of the vehicle, utility boxes could range from $10,000 to $80,000 per truck. Consequently, the replacement of the utility boxes has been cost prohibitive to replace every five years with every new leased truck. However, since the City is leasing 56 vehicles that have different lease start dates, it is in the City's best interest to extend the agreement to match the end date of current lease dates and allow staff adequate time to evaluate the cost-effectiveness of the current program and to assess alternative long-term replacement plans for the City's fleet. Submitted by: Fiscal Review: Approved by: ./)/11----iper? Kathleen Yurchak Tina Olson Nelson Fialh Director of Operations and Director of Finance City Manager Water Utilities Attachment: 1. Master Equity Lease Agreement 2. Amendment to Master Equity Lease Agreement Page 2 of 2