City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 6, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: EMILY BAKER, DEPUTY CITY MANAGER AND INTERIM DIRECTOR OF TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Consideration of Resolution to Authorize the City to Enter into a Vehicle Lease Agreement for the Provision of DOT Paratransit Services
BODY
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ISSUE: City Council consideration of a resolution authorizing the City Manager to lease City-owned vehicles to vendors contracted for paratransit and related transportation services.
RECOMMENDATION: That City Council approve a resolution (Attachment 1) authorizing the City Manager, or his designee, to execute a vehicle lease agreement with the contracted service vendor for the DOT Paratransit Program enabling the City to provide City owned vehicles for the operation of the DOT Paratransit Program and related transportation services.
BACKGROUND: The DOT Paratransit Program is currently operated by WeDriveU, a long-standing vendor with decades of experience delivering transportation services for the City. This extensive partnership ensures that DOT riders benefit from a provider deeply familiar with the program’s goals, operations, and rider needs. Currently, WeDriveU operates the service using vendor-owned vehicles. While this model enables service delivery, it contributes to higher operational costs, as the vendor incorporates vehicle financing, depreciation, and overhead into the service rate.
At present, the City does not typically provide vehicles directly to contracted vendors, and any arrangement to lease City-owned vehicles to a vendor requires City Council approval. Establishing a framework to allow for such leasing arrangements would support cost efficiencies, improve asset oversight, and contribute to long-term sustainability of the program.
DISCUSSION: In response to City Council direction to explore cost-saving measures and operational efficiencies for the DOT Paratransit program, staff proposes leasing City-owned vehicles to its long-standing paratransit vendor, WeDriveU, who has provided service to the DOT program for decades. This shift addresses rising costs associated with vendor-owned fleets, which include financing and depreciation costs built into service rates.
The City will purchase three (3) electric Ford Transit vans with side-entry wheelchair lifts using Fleet Fund Balance, with delivery expected by the end of 2025. These vehicles will be leased to WeDriveU through the end of their current contract (December 2026) and included in future service agreements. The City is considering transitioning to a fully City-owned fleet over the next five years with this initial delivery serving as a pilot.
Under the lease:
• The City will maintain the vehicles.
• WeDriveU will be responsible for insurance, charging, cleaning, and coordinating maintenance with the City.
This model gives the City more control over vehicle quality and supports the transition to a clean, electric fleet. It also directly responds to common rider complaints about vehicle age, ride quality, and cleanliness, while continuing to partner with a vendor who understands the DOT program and its riders.
The lease term would be decided by the City Manager, or his designee, but for no more than five (5) years.
FISCAL IMPACT: The City will purchase three (3) electric Ford Transit vans at approximately $130,000 each, funded through the Fleet Fund Balance. These will be leased to WeDriveU for $2,700-$3,000/month per vehicle, generating up to $108,000 annually. The City will cover maintenance costs, estimated at $800 per vehicle per year, while the vendor will handle insurance, charging, and cleaning.
Each vehicle is projected to operate for 7 years (150,000 miles). Based on the proposed leasing model, the City would recover its investment in approximately 4 years, and subsequent lease revenue could be applied to further reduce the cost of providing paratransit services to residents. This model shifts costs from operations to capital and reduces vendor rates by removing vehicle financing costs. Once fully implemented across a 15-18 vehicle fleet, this approach could lower annual operating costs by up to 20%. Currently, the program costs more than $2 million annually.
While no grants are currently secured, the City will pursue external funding for future fleet expansion.
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: Presentation
STAFF:
Bryan MacAvoy, Assistant City Attorney
Hillary Orr, Deputy Director, T&ES
Katy North, Division Chief, T&ES
Darryl Syler, Division Chief, T&ES
Owen Albrecht, Paratransit Manager, T&ES
Ken Lett, Fleet Acquisitions Manager, T&ES