HomeMy WebLinkAboutItem 16 - Amendment for Enterprise Fleet Management LeasePolice Department
www.santa-ana.org/pd
Item # 16
or City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 7, 2026
TOPIC: Enterprise Fleet Management Lease Amendment
AGENDA TITLE
Amendment to Supplemental Agreement with Enterprise Fleet Management, Inc. for
Leased Vehicles
RECOMMENDED ACTION
Authorize the City Manager to execute an amendment to the supplemental agreement
with Enterprise Fleet Management, Inc. to exercise a one-year extension from April 19,
2026 through April 18, 2027 for leased vehicles and maintenance management services
for an annual amount not to exceed $520,536 (Agreement No. A-2026-XXX).
GOVERNMENT CODE 484308 APPLIES: Yes
DISCUSSION
On January 16, 2024, the City Council approved seven agreements with Enterprise FM
Trust and Enterprise Fleet Management, Inc. ("Enterprise") for leased vehicles and
maintenance agreements for both the Santa Ana Police Department and the Planning
and Building Agency. These agreements included the following:
• Master Walkaway Lease Agreement;
• Master Equity Lease Agreement;
• Maintenance Management and Fleet Rental Agreement;
• Supplemental Agreement between City and Enterprise;
• Indemnity Agreement for Master Walkaway Lease Agreement;
• Indemnity Agreement for Master Equity Lease Agreement; and
• Amendment to Maintenance Management and Fleet Rental Agreement.
The City Council's approval of the agreement covering the period of January 1, 2024
through April 18, 2026 was based on Santa Ana Ordinance No. NS-3041, which
authorized the City to purchase against contracts awarded by any public agency
employing a competitive bid process. Sourcewell, a cooperative government purchasing
agency, awarded a contract to Enterprise Fleet Management, Inc. (Contract No.
Enterprise Fleet Management Lease Amendment
April 7, 2026
Page 2
030122-EFM) for procurement of fleet management services, open-end leases,
maintenance management programs, etc., as a result of open, competitive bidding on
behalf of its members, which includes government agencies. Utilizing Sourcewell's
contract enabled the City to enter into new agreements with Enterprise and obtain the
best pricing and allowed both departments to continue with the existing lease vehicles
that were currently under contract.
The Planning and Building Agency was allocated one-time funding to purchase new
vehicles and have since returned all lease vehicles back to Enterprise during calendar
year 2025. Currently, the Police Department leases 53 vehicles.
Sourcewell's contract with Enterprise has been extended to April 18, 2027 by mutual
consent. Staff recommends amending the supplemental agreement to exercise the
same one-year extension for an annual amount not to exceed $520,536.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funding is available in the FY 25-26 budget in the following accounts and funding for FY
26-27 will be included in the proposed budget for City Council consideration:
Fiscal
Accounting Unit —
Fund
Accounting Unit —
Year
Account No.
Description
Account No.
Amount
Description
Police Department
FY 25-26
01114XXX-62300
General Fund
Various, Contract
$116,635
Services -
Professional
Police Enforcement
FY 25-26
01214010-62300
Cannabis Fund
Services, Contract
$ 13,500
Services -
Professional
Police Department
FY 26-27
01114XXX-62300
General Fund
Various, Contract
$349,901
Services -
Professional
Police Enforcement
FY 26-27
01214010-62300
Cannabis Fund
Services, Contract
$ 40,500
Services -
Professional
Total
$520,536
Enterprise Fleet Management Lease Amendment
April 7, 2026
Page 3
EXHIBIT(S)
1. Amendment to Supplemental Agreement
Submitted By: Robert Rodriguez, Police Chief
Approved By: Alvaro Nunez, City Manager
AMENDMENT TO SUPPLEMENTAL AGREEMENT BETWEEN ENTERPRISE
FLEET MANAGEMENT, INC AND CITY OF SANTA ANA FOR VEHICLE LEASE
AND MAINTENANCE
THIS AMENDMENT TO THE SUPPLEMENTAL AGREEMENT is made and entered into
on this 7th day of April, 2026, by and between Enterprise Fleet Management, Inc., a Missouri
corporation also known as "Servicer" in the Master Equity Lease Agreement ("Enterprise"), and
the City of Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California ("City"). Enterprise and the City are referred to
collectively as "The Parties."
RECITALS
A. On January 16, 2024, upon approval by the City Council of the City of Santa Ana, the
parties entered into seven (7) agreements for the lease and maintenance of vehicles from
Enterprise Fleet Management. The agreements are:
• Master Walkaway Lease Agreement ("MWLA") (A-2024-018-01)
• Master Equity Lease Agreement ("MELA") (A-2024-018-02)
• Maintenance Management and Fleet Rental Agreement (A-2024-018-03)
• Supplemental Agreement (A-2024-018-04)
• Indemnity Agreement for MWLA (A-2024-018-05)
• Indemnity Agreement for MELA (A-2024-018-06)
• Addendum to Maintenance Management Agreement (A-2024-018-07)
B. For the agreements, listed above, the Supplemental Agreement (A-2024-018-04)
("Supplemental Agreement") provides the not -to -exceed amount of the rent and charges
incurred in connection with the leased vehicles consistent with paragraphs 3, 5 and 6 of the
Master Equity Lease Agreement and Master Walkaway Lease Agreement entered into
between the parties. In addition, all vehicle repair and service fees, billing and payments
in connection with the leased vehicles are defined by paragraphs 2 and 3 of the
Maintenance Management Agreement and Fleet Rental Agreement.
C. Under the Supplemental Agreement, Sections 2 and 3 of the Enterprise Master Equity
Lease Agreement and the Enterprise Master Walkaway Lease Agreement govern the Term,
Rent and Other Charges.
D. Pursuant to the terms of the Supplemental Agreement, the parties acknowledged that the
term of the lease or maintenance of any leased vehicles, as provided in the remaining
Enterprise Agreements listed in Recital A, above, would not extend past April 18, 2026 due
to the not -to -exceed amount provided in Section La. of the Supplemental Agreement.
E. The City retains the option to grant up to one (1)-year renewal of such authority, exercisable
by a writing by the City Manager and the City Attorney. The Supplemental Agreement is
therefore, current and in -effect.
F. Santa Ana Ordinance No. NS-3041 authorizes the City to purchase against contracts
awarded by any public agency employing a competitive bid process. Sourcewell, a
cooperative government purchasing agency, awarded a contract to Enterprise Fleet
Management, Inc. (Contract No. 030122-EFM) for procurement of fleet management
services, open-end leases, maintenance management programs, etc., as a result of open,
competitive bidding on behalf of its members, which includes government agencies.
G. This pricing and services under this Agreement is in accordance with the contract between
Enterprise Fleet Management and Sourcewell for Fleet Management Services Request for
Proposal #030122-EFM effective until April 18, 2027.
H. Utilizing Sourcewell's contract enables the City to enter into these agreements with
Enterprise and obtain the best pricing and allows SAPD to continue with the existing lease
vehicles currently under contract. Such use was approved by the City's Purchasing
Manager in accordance with the City's guidelines defined above.
I. The parties hereby wish to amend the Supplemental Agreement to exercise the option to
extend the term of the Supplement Agreement and increase the not -to -exceed amount to
provide compensation for the extended term. No other changes are contemplated by this
Amendment.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject
to the terms and conditions hereinafter set forth, the parties agree as follows:
1. Section La., COMPENSATION, is hereby amended and reads as follows:
a. The total amount to be expended for the lease and maintenance of vehicles, during the
extended term defined below in Section 2 of this Amendment to the Supplemental
Agreement, shall not exceed $520,536.
2. Section 2, TERM, is hereby amended to exercise the option to extend the term of the
Supplemental Agreement through April 18, 2027. This extended date shall apply to the
terms of Enterprise Agreements listed in Recital A, above, and any prior pending or
existing lease agreements referenced in the Supplemental Agreement.
[signature page to follow]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
Jennifer L. Hall
City Clerk
APPROVED AS TO FORM:
SONIA R. CARVALHO
City,Attorney
By:
TamV13TsiangoW
Senior Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Robert Rodriguez
Chief of Police
CITY OF SANTA ANA
Alvaro Nunez
City Manager
ENTERPRISE FLEET MANAGEMENT
INC..
EUaM
uSigned by:
E
�uu� %c,V'�t,s
8D4A7
By: Michael Gerges
Title: VP of Finance