ENTERPRISE FLEET
MANAGEMENT
CONTRACT
GROVERBEACH.ORG
Kristin Eriksson, Assistant City Manager
City Fleet Management
GROVERBEACH.ORG
• 24 vehicles in fleet
• One maintenance mechanic
• Also responsible for other City equipment
• Ad hoc purchasing of vehicles, based on availability of funding • Many vehicles beyond useful life
• Increased maintenance costs
City Fleet Management
GROVERBEACH.ORG
• Staff began analysis of process in early 2025
• Goals:
• More predictable, steady expenditure
• Reliable funding source
• Reduce burden on single maintenance mechanic
• Obtain contract pricing for maintenance at local repair shops • Planning for acquisition; move to leasing where possible Equipment Replacement Fund (ERF)
GROVERBEACH.ORG
• Previously low annual contribution; unable to support vehicle replacements
• Council approved budget policies
• ERF reserve funding set at total amount of depreciation for value of current assets
• Included in FY 2025-27 Proposed Budget
• Staff worked with Enterprise Fleet Management on Fleet management program within the capacity of ERF
CONFIDENTIAL AND PROPRIETARY © 2016 Enterprise Fleet Management, Inc.
REFERENCES Who do we work with locally?
COOPERATIVE PURCHASING CONTRACTS
CONFIDENTIAL AND PROPRIETARY © 2025 Enterprise Fleet Management, Inc.
COMPREHENSIVE
OFFERING, SO
YOU CAN FOCUS
ON YOUR
OBJECTIVES
Customized to best fit the
needs of your business.
ACQUISITION
FINANCING /
CREDIT LINES
LICENSE,
TITLE AND
REGISTRATION
AFTERMARKET
VEHICLE
CUSTOMIZATION
MAINTENANCE
PROGRAMS FUEL PROGRAMS
ACCIDENT / RISK
MANAGEMENT
TELEMATICS
DRIVER SAFETY
VEHICLE RESALE
CONFIDENTIAL AND PROPRIETARY © 2025 Enterprise Fleet Management, Inc.
Determining the right time to replace vehicles
EFFECTIVE VEHICLE LIFECYCLE COST
OPTIMAL TIME
TO REPLACE
DEPRECIATION FUEL MAINTENANCE
TIME
OPENENDED
LEASING
MODEL
$10,000
CASH FLOW
SAVINGS
FOR EXAMPLE AND ILLUSTRATION PURPOSES ONLY. DOES NOT REFLECT ACTUAL CLIENT DATA OR A RECOMMENDATION. $22,500
EQUITY
$12,500
EQUITY
$0
$22,500
ESTIMATED RESALE AT 48 MO
$40,000
DELIVERED PRICE
$10,000
UNPAID PRINCIPAL
$625
ESTIMATED MONTHLY
PRINCIPAL
$30,000
ENTERPRISE
RECOMMENDATION
$833
ESTIMATED MONTHLY
PRINCIPAL
$40,000
TRADITIONAL
CASH OUTLAY/
FINANCE
Enterprise Fleet Recommendation Summary
• Replace 8 Vehicles (4-Police Dept. & 4- Public Works Dept.) • Units Targeted for replacement 10+ years and older and/or 100,000 miles+ • Units identified to replace due to age, miles, equity and operational expenses to the City • All new leases will have maintenance included
Enterprise Fleet Recommendation Summary cont.
• Police Department will source their aftermarket internally • Public Works Dept- Year 1 Outlay is higher initially due to cost of upfit ($90,736.96) • Both Police and Public Works Department will see a significant increase in fleet equity CONFIDENTIAL AND PROPRIETARY © 2025 Enterprise Fleet Management, Inc.
MONTH 1
MONTH 2-8
MONTH 9
MONTH 12
• Set up credit line
• Order vehicles
• Ancillary Rollout
• EFM Director to conduct
relationship “Health Checks”
• 6-month client review meeting
• Fleet analysis expense summary
• Savings and efficiency opportunity exploration
• Next model year: fleet plan and development
• Introduction to Account Team
• Formalize relationship
expectations
• Launch company car policy
• Review customer website,
invoice process, etc.
• Review vehicle sale results
• Manager to call to evaluate team
performance
• Check program usage and
overall satisfaction
POST-IMPLEMENTATION
ANNUAL CLIENT REVIEW
IMPLEMENTATION MEETING
9-MONTH PARTNERSHIP REVIEW
PARTNERSHIP BEGINS
WHAT TO EXPECT – FIRST YEAR
QUESTIONS