Item 190/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Niki Wetzel
Dept:
City Manager Dept: Community Development
Date: 7/8/2025
Subject: Approval of Amendment No. 1 to the Master Equity Lease agreement with Enterprise Fleet Management, Inc. for the lease and maintenance of three additional vehicles for the Community Development Department. (Cost: Not-to-Exceed $116,000)(Action Item)
OBJECTIVE
For the City Council to approve Amendment No. 1 with Enterprise Fleet Management, Inc. to expand the scope of the agreement to include the lease and maintenance of three additional vehicles.
BACKGROUND
On May 25, 2021, the City Council approved a five-year Master Equity Lease and Maintenance Agreement with Enterprise Fleet Management, Inc. to replace five vehicles scheduled for retirement from the City’s existing fleet. Two of the vehicles were assigned to the Housing Authority for inspections, whi le the remaining three were assigned to Community Development for building inspections, administrative use, and municipal code enforcement.
The current lease and maintenance term ends in Fiscal Year 2026-27 (June 2027).
DISCUSSION
At the end of Fiscal Ye ar 2023-24, the Community Development Department submitted a request for three additional vehicles to support newly-approved positions. These vehicles were delivered in Fiscal Year 2024 -25 and have been assigned as follows: two vehicles for new building inspector positions and one vehicle for the grant -funded Tobacco Code Enforcement Officer. All three positions are full -time field staff roles that require daily transportation.
These positions were funded after the original agreement was approved, prompting a separate vehicle request. At the time, it was unclear that a formal amendment to the Enterprise Agreement would be required for these additional vehicles. This amendment Item 190/2025
addresses that oversight by formally expanding the scope of the agreement to include the lease and maintenance of the three new vehicles.
FINANCIAL IMPACT
The total cost for the Enterprise five-year lease and maintenance agreement for three vehicles shall not exceed $116,000. Funds to lease and maintain two of the vehicles are av ailable in the department’s budget as an ongoing expense. Grant funds are available to cover the lease and maintenance of one vehicle for the three-year term of this agreement. There will be no additional impact on the General Fund.
RECOMMENDATION
It is recommended that the City Council:
Approve Amendment No. 1 with Enterprise Fleet Management Inc., for a five- year lease and maintenance of three additional vehicles; and Authorize the City Manager , or designee, to execute Amendment No. 1 and other documents necessary to effectuate the lease and maintenance program.
By: Kenneth Le, Administrative Analyst
ATTACHMENT(S)
1. Lease breakdown for 3 Vehicles