Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fleet Management topic
No spam. Unsubscribe anytime.
Liberty Hill Council authorizes finance director to negotiate vehicle lease deal after fleet presentation
Summary
After a presentation from Enterprise Fleet Management, the council voted 5-0 to authorize the finance director to negotiate a master equity lease and return with terms at the next meeting. Council and staff said they will collect more vehicle and cost data before final approval.
Liberty Hill — The City Council on Tuesday authorized the finance director to negotiate a master equity lease agreement with Enterprise Fleet Management and to return the negotiated terms for council approval at the next meeting.
The action came after a presentation by an Enterprise Fleet Management representative on leasing and fleet services and a discussion about vehicle acquisition, maintenance, fuel programs and potential savings. The council voted 5-0 to allow the finance director to negotiate; the item will return to the council with recommended terms before a final decision.
Enterprise’s representative said the company provides a lease-purchase option that includes vehicle acquisition, maintenance-management, fuel programs and telematics. “We can help you procure vehicles cheaper than you can just buying them from a dealership,” the representative said. He described the offer as a lease purchase with “no mileage restrictions, no early termination penalties, and no wear and tear charges,” and said the city would receive 100% of any equity when Enterprise sells retired vehicles.
Finance Director Josh Armstrong framed the fleet issue as a budget priority tied to overall operations, noting that roughly half of the city’s vehicles are funded through the general fund and half through utilities. Armstrong asked council for direction on whether to pursue outsourced fleet acquisition and management and said staff would collect historical acquisition and maintenance data to allow side-by-side financial comparisons.
Council members and staff asked Enterprise about resale proceeds, disposal fees, maintenance responsibility, fuel savings and lead times for vehicle delivery and upfitting. Enterprise said there is a flat $400 disposal fee per vehicle in its analysis, that most vehicles are sold through a network of buyers (not public auction), and that maintenance can be managed through a nationwide network of repair shops and billed to the city. The company estimated roughly $10,000 in annual fuel savings for Liberty Hill if the city moved to Enterprise’s fuel program.
Public works staff reported they had been briefed and were supportive of exploring the option. Council members said they wanted more data — a three- to five-year lookback on acquisition and operations and a breakout of police versus regular fleet costs — before final approval.
A councilmember moved to authorize the finance director to negotiate the master equity lease and bring the negotiated agreement back to the council at its next meeting. The motion was seconded by Councilmember Elizabeth Brown and passed 5-0.
The negotiated agreement will be presented to the council for final approval at a future meeting once staff compiles the requested historical cost and vehicle condition data.
Staff and Enterprise emphasized that no replacements would occur without separate council approval of any final purchase or lease terms, and that insurance coverage for city vehicles would remain in place.
