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Council reviews Enterprise Fleet pilot to replace aging city vehicles
Summary
City staff presented a plan to lease 30 non–public-safety vehicles through Enterprise Fleet Management as a pilot for lifecycle replacement, including telematics, with a year-one cash flow estimate of $348,000 and projected equity of $588,000 at the end of a five-year term; no final vote was recorded in the work session.
The Decatur City Council heard a presentation on a proposed pilot fleet-replacement program that would lease 30 non–public-safety vehicles through Enterprise Fleet Management and add telematics to monitor safety and performance.
The measure was presented by Kyle DeMeister, Finance, and Grant Powell of Enterprise Fleet Management. DeMeister said the pilot targets part of the city's overall fleet to test whether a leasing lifecycle reduces total cost of ownership. Powell told the council the city's fleet profile shows an average vehicle age of 15 years and high mileage, and recommended standardizing vehicle classes and remarketing older vehicles through Enterprise's channels.
"Average age of y'all's vehicles is 15 years. You have 99 vehicles that are 10 years or older," Grant Powell said. He described a one-year cash-flow figure and an expected equity return at lease term: "In 1 year, it's $348,000... at the end of the 5 year term, you guys are gonna get back $588,000 worth of equity that we are now able to roll into the next 30 vehicles at the end of the term."
Powell said Enterprise would handle title, registration and remarketing and could install Geotab telematics for live tracking and accident recreation. DeMeister said city department heads with affected vehicles have been consulted and the pilot was presented to the finance committee before the council work session.
Councilmembers asked for references and clarification of the budget impact. DeMeister said the city had budgeted approximately $500,000 this fiscal year for vehicle replacement and described the pilot as a way to spread cost and potentially preserve budgeted funds.
No final vote was recorded in the work session. Staff described next steps as gathering vehicle titles, completing two transfers, and factory-ordering replacements if the council proceeds to authorize an agreement.
