Dickinson County authorizes staff to pursue Enterprise fleet lease program

The Dickinson County Board of Commissioners on Oct. 9 authorized county staff to work with Enterprise Fleet Management on a fleet-management agreement and allowed the county administrator to execute lease schedules and related documents on the county’s behalf.

County leaders said the proposal centers on an “equity lease” model in which Enterprise acquires and manages vehicles, delivers updated units to departments, and returns equity to the county when vehicles are resold. County staff and Enterprise representatives said the model could lower annual maintenance and fuel expenses, increase resale value on rotating vehicles, and smooth capital outlays for replacements.

In a presentation to the commission, Ken Olsen, an Enterprise Fleet Management representative, described the company’s equity-lease approach and how it has been used by other Kansas and Missouri government clients. “We look at it from a cost-of-ownership standpoint,” Olsen said, explaining that Enterprise combines buying power, scheduled replacement timing and a resale network to capture equity and limit the high maintenance costs that occur as vehicles age.

Presenters reviewed a county-specific model that estimated a potential reduction in operating costs if Dickinson County moved from a long-run ownership cycle to more frequent scheduled rotations. The materials shown to commissioners included conservative projections that the county could save roughly $620200,000 to $700,000 over a 10-year window in the initial model and suggested maintenance-and-fuel savings on the order of "close to probably $100,000 a year," according to the presentation. Presenters noted those figures are estimates based on current market conditions and would be refined in formal lease schedules.

Commissioners and staff discussed operational details raised during the presentation, including how the program would handle higher-mileage, pursuit-rated sheriff vehicles; warranty and insurance arrangements for crash or total-loss events; aftermarket upfitting and delivery logistics; and whether local dealers would be bypassed. Olsen said Enterprise delivers most new vehicles to local dealerships for warranty and service work and that the company partners with nationwide dealers; he added that most dealerships participating in Enterprise programs receive delivery fees and warranty business.

County staff noted funding would come from the county’s equipment reserve and that the county’s current reserve balance is being factored into budget projections for year one. The county’s financial analysis presented to commissioners showed a scenario in which bringing 30 vehicles into the program in year one would increase near-term capital outlay compared with buying one or two vehicles outright, but could reduce total cost of ownership over time through equity recoveries and lower maintenance expenses.

Action: Commissioners voted to authorize staff to finalize terms and to permit the county administrator to execute documents and lease schedules related to an Enterprise fleet program. The motion passed on a voice vote; commissioners did not record a roll-call tally during the meeting. County staff said they will return with formal lease schedules, budget details and recommended implementation steps once negotiations and legal review are complete.

The commission and Enterprise representatives emphasized the approach would be customizable by department (for example, allowing in-house maintenance for some trucks while outsourcing service for other vehicles) and that the program includes quarterly reviews and annual client strategy meetings to adjust term lengths, vehicle specifications and replacement timing.

Next steps: County officials said staff will continue negotiations, prepare formal lease schedules for commission review and present the fiscal impact and recommended phasing to the board before any leases become binding.