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HomeMy WebLinkAboutPR 24860: REQUEST APPROVAL FOR THE CITY MANAGER TO AUTHORIZE AND EXECUTE NEW AND REPLACEMENT VEHICLES FOR EY26 INTEROFFICE MEMORANDUM Date: 03/23/2026 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Lynda Boswell, Director of Finance RE: PR No. 24860 Request approval for the City Manager to authorize and execute new and replacement vehicles for FY2026 under the current enterprise fleet management lease program. Introduction: Request approval for the City Manager to authorize and execute new and replacement vehicles for FY2026 under the current enterprise fleet management lease program. Background:_The City had approved a master equity lease agreement with Enterprise Fleet Management on September 21, 2021, Resolution 21-383, and then an updated one to coincide with new requests and replacements with Resolution 23-112. This resolution is for FY2026 and amends the 23-112. The purpose of the master equity lease agreement with Enterprise was to get all of our vehicles into a planned rotational schedule, with some of the vehicles on the program already replaced prior to FY26, and the rest of the vehicles are new replacements, and some new requests because of increased personnel. When the rotations of the enterprise fleet occur on a regular basis, the intent is that the costs will remain the same because of equity left of leased vehicles. This keeps vehicles maintained and provides return costs that will be applied to any replacements in the future. Budget Impact: The contract has a projected budgetary impact of$3,249,019 which is inclusive of previous years, and funds are available in the Finance Department professional services account no. 001-09-015-5420-00-10-000. Recommendation:,The attached Proposed Resolution No. 24860 authorizes the City Manager to enter into lease agreements as described in Exhibit"A." We recommend that the City Council approve it as presented. P.R. NO. 24860 3/23/2026 LYN RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO REPLACE THE VEHICLES FOR VARIOUS CITY DEPARTMENTS UNDER THE EXISTING MASTER EQUITY LEASE AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT, INC. WITH A TOTAL ESTIMATED COST FOR THE LEASE PROGRAM OF $3,249,019 FOR FISCAL YEAR 2026. WHEREAS, on September 21, 2021, the City Council approved Resolution 21-383 authorizing the execution of a master equity lease agreement between the City of Port Arthur and Enterprise Fleet Management, Inc for the replacement of vehicles and equipment under a lease program, including the replacement and new leases for approximately 146 vehicles during FY2026; and, WHEREAS, the intent and current role of the master equity lease agreement was to have a rotation of well-maintained vehicles at all times, with ending leases for vehicles that are turned in as a result of the program crediting replacements of the program; and, WHEREAS,the City is phasing out many of its vehicles into the equity lease program,as well as acquiring new vehicles for added employees who require a vehicle to function in their respective jobs; and, WHEREAS, the new and existing vehicles are to be secured through the lease program and are essential for the City of Port Arthur, Texas to perform its governmental function and continues the program intended; and, WHEREAS, the individual lease terms of the vehicles range from twenty-four (24) to sixty (60) months; and, WHEREAS, the funds are available and appropriated in the Capital Reserve Fund 625, as detailed in Exhibit"A" and adopted in the FY2025-2026 budget; and WHEREAS,the City of Port Arthur expressly disavows any intent to obligate the municipality to monetary or financial obligations beyond FY2025-2026. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council authorizes the City Manager to replace vehicles during the 2025-2026 fiscal year under the existing master equity lease agreement between the City of Port Arthur and Enterprise Fleet Management, Inc. Section 3. That the City Manager is hereby authorized to replace vehicles as provided in Exhibit"A"for the period beginning October 1, 2025 through September 30, 2026. READ, ADOPTED, AND APPROVED on this day of April, A.D., 2026, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: Mayor: Councilmembers: , • NOES: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED F 1 ' ADMINISTRATION: 401- Ron Bu . ' •ity 1 anager, CPM .. / le Lida.:oswell, Director of Finance Exhibit"A" Fund Dept Acct Vehicle Cost 625 Information Technology 625-09-023-8492-00-00-000 2024 Ford Escape(current lease) 8,124 1 625 Development Services-Inspections 625-13-035-8492-00-00-000 Ford F250 Crew Cab(FY26) 13,600 1 625 Development Services-Demolition 625-13-036-8492-00-00-000 2025 Ford Escape(current lease) 14,583 1 625 Development Services-Environmental Heall 625-13-039-8492-00-00-000 2023 RAM 1500(current lease) 76,928 1 625 Development Services-Environmental Heal;625-13-039-8492-00-00-000 Ford F250 Crew Cab(FY26) 13,600 1 625 ;Development Services-Animal Control 625-13-041-8492-00-00-000 2023 RAM 1500(current lease) 10,747 1 625 Police '625-17-045-8492-00-00-000 (2)Ford Explorers(FY26) 23,346 2 625 Police 625-17-045-8492-00-00-000 (13)Chevrolet Tahoes(FY26) 185,563 13 625 Police 625-17-045-8492-00-00-000 (9)2022 Chevrolet Tahoe 129,358 9 625 Police 625-17-045-8492-00-00-000 (6)2022 Ford Explorers 49,382 6 625 Police 625-17-045-8492-00-00-000 2022 Chevrolet Silverado 1500 8,156 1 625 Police _ 625-17-045-8492-00-00-000 (12)2023 Chevrolet Tahoes 171,376 12 625 Police _ 625-17-045-8492-00-00-000 (3)2023 Ford Explorer 35,020 3 625 Police 625-17-045-8492-00-00-000 (30)2024 Chevrolet Tahoes 612,632 30 625 Police _ 625-17-045-8492-00-00-000 Current Leases 290,925 5 625 Fire 625-19-047-8492-00-00-000 (5)Pickup Trucks(FY26) 450,000 1 625 Public Works-Engineering 625-21-051-8492-00-00-000 2022 Chevrolet Traverse(current lease) 6,361 1 625 Public Works-Engineering 625-21-051-8492-00-00-000 2022 Chevrolet Silverado 1500 LTD(current lease) 6,361 1 625 Public Works-Streets 625-21-053-8492-00-00-000 Chevrolet Silverado 2500 Flatbed w/Strobe Lights(FY26 55,600 1 625 Public Works-Streets 625-21-053-8492-00-00-000 Chevrolet Silverado 2500 w/Strobe Lights(FY26) 45,600 1 625 Public Works-Streets 625-21-053-8492-00-00-000 Chevrolet Silverado 1500 w/Strobe Lights(FY26) 81,200 1 625 Public Works-Traffice Maintenance 625-21-057-8492-00-00-000 Ford 450 CC Regular Cab(FY26) 14,000 1 625 Public Works-Traffice Maintenance 625-21-057-8492-00-00-000 i 2026 Ford F250 Regular Cab(FY26) 14,000 1 625 Public Works-Traffice Maintenance 625-21-057-8492-00-00-000 2026 Ford F250 Crew Cab(FY26) 14,000 1 625 Health 625-23-061-8492-00-00-000 Ford Escape(current lease) 8,124 1 625 Health 625-23-061-8492-00-00-000 Ford Escape(FY26) 9,109 1 625 Parks&Recreation 625-25-065-8492-00-00-000 Passenger Van(FY26) 67,000 1 625 Parks&Recreation 625-25-065-8492-00-00-000 Chevrolet Silverado 1500(current lease) 8,471 1 625 Parks&Recreation 625-25-065-8492-00-00-000 2022 Ford F-250(current lease) 6,566 1 625 Parks&Recreation 625-25-065-8492-00-00-000 2021 RAM 1500 Classic(current lease) 9,600 1 625 Parks&Recreation 625-25-065-8492-00-00-000 Current Leases 33,907 1 625 Water&Sewer Administration 625-40-200-8492-00-00-000 2025 Ford Escape(FY26) 40,000 1 625 Water&Sewer-Customer Service 625-40-205-8492-00-00-000 FY 2025 Leased Vehicles 90,153 1 625 Water&Sewer-Customer Service 62540-205-8492-00-00-000 Ford F150 Pickup Truck(FY26) 49,445 1 625 Water&Sewer-Water Distribution 625-40-215-8492-00-00-000 Ford F250 Service Crew(FY26) 78,065 1 625 Water&Sewer-Water Distribution 625-40-215-8492-00-00-000 Ford F150(FY26) 49,445 2 625 Water&Sewer-Water Distribution 625-40-215-8492-00-00-000 Two(2)Chevy 1500(FY26) 74,000 1 625 Water&Sewer-Water Distribution 625-40-215-8492-00-00-000 2023 RAM 1500(current lease) 10,827 2 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 Two(2)Ford F250 Service Trucks(FY26) 123,576 1 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 Ford F250 Crew LWB(FY26) 78,065 1 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 Ford F150 Pickup Truck(FY26) 49,445 1 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 F250 Crew Cab Service Truck(FY26) 14,000 1 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 F250 Crew Cab w/Utility Bed(FY26) 14,000 2 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 (2)2023 RAM 1500(current lease) 21,700 2 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 (2)2022 Chevrolet Silverado 2500 HD(current lease) 14,168 2 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 (2)2022 Chevrolet Silverado 1500(current lease) 15,821 1 625 Water&Sewer-WW Conveyance 625-40-220-8492-00-00-000 RAM 5500 Chassis(current lease) 20,070 2 625 Solid Waste-Administration 625-50-300-8492-00-00-000 (2)Chevrolet Silverado 1500 Truck(FY26) 22,000 1 625 Solid Waste-Residential 625-50-310-8492-00-00-000 Chevrolet Silverado 1500(FY26) 11,000 3,249,019 The costs include the vehicle and necessary accessories for municipal services in addition to __ maintenance costs.