TO: City Council DATE: April 27, 2026 DEPARTMENT: City Manager's Office
PREPARED BY: Isaac Whippy, City Manager
PRESENTER: Isaac Whippy, City Manager
AGENDA TITLE: Transition from Cash Purchases to Fleet Leasing Program with Enterprise Fleet Management ______________________________________________________________________________
RECOMMENDATION
Adopt a resolution authorizing the City Manager to enter into an agreement with Enterprise Fleet Management to transition from a cash-based vehicle acquisition model to a structured fleet leasing program, and approve the implementation of a citywide fleet replacement strategy. _____________________________________________________________________________
BACKGROUND
Historically, the City of Fort Bragg has purchased fleet vehicles outright using available capital funds. While this approach avoids interest costs, it has resulted in:
Irregular and reactive vehicle replacement cycles
Aging fleet inventory with increasing maintenance costs Deferred replacement due to competing capital priorities Limited ability to standardize fleet management practices As the City continues to modernize operations and align with long-term financial planning goals, staff has evaluated alternative fleet management models that provide greater predictability, efficiency, and lifecycle optimization.
Enterprise Fleet Management (EFM) is a nationally recognized provider specializing in municipal fleet leasing and lifecycle management services, currently serving numerous public agencies across California.
DISCUSSION AND ANALYSIS
Transitioning to a leasing model allows the City to shift from a reactive, capital-heavy approach to a proactive, lifecycle-based fleet management strategy.
Key Benefits Include:
1. Predictable Budgeting & Cash Flow Management
Replaces large, one-time capital expenditures with fixed monthly payments Improves long-term financial forecasting and stability
Frees up capital funds for other strategic priorities (e.g., infrastructure, parks, broadband)
2. Optimized Vehicle Replacement Cycles
Vehicles are replaced based on mileage, usage, and lifecycle cost—not budget timing Reduces costly repairs associated with aging vehicles
Ensures staff have reliable and safe equipment
3. Reduced Maintenance & Operating Costs
Newer vehicles improve fuel efficiency and reduce repair frequency Enterprise provides maintenance tracking, fuel management tools, and data analytics
4. Fleet Management Expertise & Technology
Dedicated account management and fleet planning support Access to fleet analytics, reporting, and replacement modeling Improved asset tracking and utilization insights
5. Operational Efficiency
Streamlined procurement process
Reduced administrative burden on staff
Standardization across departments (Public Works, Police, Parks & Rec, etc.)
FISCAL IMPACT
Current Model (Cash Purchase):
Requires large upfront capital outlays
Leads to deferred replacements during tight budget years Increased long-term maintenance and repair costs
Proposed Leasing Model:
Fixed monthly lease payments (operating expense)
Lifecycle cost approach (vehicle + maintenance + resale value) Potential cost neutrality or savings over time when factoring:
Reduced maintenance costs
Improved fuel efficiency
Higher resale values through planned replacement
Enterprise Fleet Management operates under a flexible, open-ended lease structure, allowing the City to retain equity in vehicles and sell them at optimal resale timing.
Staff will return to Council with annual fleet replacement plans and associated budget impacts as part of the regular budget process.
CONSISTENCY
This initiative directly supports the City’s Strategic Plan by:
Ensuring Fiscal Sustainability
Enhances long-term financial planning and asset management Improving Operational Excellence
Provides staff with reliable, modern equipment
Modernizing City Services
Introduces data-driven decision-making and professional fleet management practices Supporting Workforce Efficiency
Reduces downtime and improves service delivery across departments IMPLEMENTATION/TIMEFRAMES:
If approved, staff will:
Complete the comprehensive fleet assessment with Enterprise Fleet Management Update the multi-year fleet replacement schedule
Begin phased transition starting with high-priority and aging vehicles Integrate fleet costs into FY 26-27 annual operating budgets
ATTACHMENTS
Fleet Enterprise Lease Presentation
AGENDA ITEM NO. 8A
CITY COUNCIL STAFF REPORT