Enterprise Fleet Management area manager Mike Sosa told the Dade City commission at a workshop that the company’s proposal to lease and more actively manage the city’s fleet could shorten Dade City’s vehicle replacement cycle from roughly nine years to five and produce about $1 million in savings over 10 years.

The pitch matters because Dade City currently owns and operates 91 vehicles across departments and faces rising operating and maintenance costs tied to an aging fleet. Sosa said a leasing approach would create a predictable, consolidated cost for acquisition, maintenance and disposition and would let the city capture resale proceeds more effectively.

Sosa said the company’s review, done with city staff, found 91 city-owned vehicles and that “34% of the fleet is 10 years or older.” He said 2012 was the average model year targeted for first-year replacement and that older vehicles tend to be “unreliable, unsafe, have higher operating expenses, and have diminished returns.” He summarized Enterprise’s financial model this way: “We project a savings of a million dollars for the city of Dade City. That projection includes our costs.”

On technical structure, Sosa described an “open-ended lease” (sometimes called a municipal lease) rather than a consumer-style lease with mileage penalties. He said the company would provide a dedicated local account team to source vehicles, coordinate aftermarket upfits (for example, police equipment) and handle resale. He described maintenance as part of a fixed-rate maintenance program: “We give you 1 set rate for any maintenance that needs to be done to that vehicle over the time that you hold it, and we guarantee everything into it.” He added that catastrophic mechanical failures would be covered, with exceptions for gross negligence.

Sosa gave fleet safety details the commission pressed on: 13 city vehicles predate the widespread adoption of electronic stability control and 39 predate routine backup-camera equipment. He said replacing vehicles more regularly would capture safety and fuel-efficiency gains.

Commissioners and staff pressed on operational details. Commissioner Schott asked for a departmental breakdown: “Can you give me a breakdown on police? This is police, public works, administration, water and wastewater. Correct?” Sosa said the analysis covered 24 vehicle types across multiple departments and excluded specialty 1-ton-plus chassis for separate handling. Commissioners also asked about police vehicle turnaround after crashes and about insurance: a commissioner asked how quickly a fully outfitted police vehicle could be procured; Sosa said timing depends on aftermarket availability but that Enterprise would “quarterback that entire process” and locate local fleet-friendly dealers. On insurance, Sosa said “The insurance doesn't change...These are still city vehicles,” and that current insurance-claims processing would not change.

Cost elements Sosa disclosed include: a marginal $60 per-vehicle delivery markup, an interest factor tied to the three-year Treasury bill plus 300 basis points, a monthly management fee calculated as a percentage of the invoice cost, and a $400 fee collected on vehicle disposition. He said Enterprise’s resale scale and national remarketing capabilities allow stronger disposal returns, and that resale proceeds flow back to the city.

Commissioner Cosentino asked whether the city could enroll only part of its fleet: “Is this something where we could identify we don't want our whole fleet to go through this? We would like to maintain these vehicles, and this portion of our fleet is on the lease program.” Sosa said yes; the company recommends phasing in the program over four to five years and beginning with the oldest, highest-mileage and most unreliable vehicles.

Staff and commissioners requested follow-ups. Commissioners asked Enterprise for local references and implementation timelines; Sosa said Enterprise provided reference materials and that partnerships in Florida range from a few months to multiple decades in length. The commission asked staff to produce side-by-side comparisons of leasing versus purchasing for review at the next budget workshop, and Enterprise left printed materials with the city clerk.

Two purchasing cooperatives Sosa cited were Sourcewell and TIPS (and a national cooperative often styled E&I); he said Enterprise participates under those cooperative contracts to serve government clients.

The presentation closed with staff and commissioners scheduling additional review work so the commission can compare short-term loan options, lease pricing and the city’s capital plan before deciding whether to adopt a leasing strategy.

Ending: City staff said they will return side-by-side cost comparisons and local references at the next scheduled budget workshop so commissioners can weigh a phased leasing option against traditional purchase and loan alternatives.