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Belton staff pitches Enterprise fleet-management pilot to replace annex vehicles
Summary
City staff and an Enterprise representative proposed a three-vehicle pilot to lease light-duty vehicles and use Enterprise's acquisition, maintenance and resale services as a way to reduce capital pressure and centralize fleet data and telematics.
City staff presented the council with a proposal to pilot an Enterprise Fleet Management program to acquire, maintain and resell a small set of city vehicles used by annex departments.
Staff said three vehicles would be the initial pilot. The vehicles would be used by neighborhood-improvement officers, community development/building staff for inspections, and the senior-center transportation program. Staff said the annex departments do not require heavy upfittings and are therefore a fit for the enterprise white-fleet program.
Brandon Scott, an Enterprise fleet representative, described the firm's services and financial approach. "Think of us as a financial advisor, but for your fleet of vehicles," Scott said. He said Enterprise leverages national resale channels and market timing to try to maximize resale value and lower total cost of ownership. Scott said partnerships are customizable by department and may include acquisition, title and registration services, maintenance, telematics and resale.
City staff gave an example illustration used in the presentation: a vehicle with a $42,000 acquisition price could be offered on an open-ended lease at about $638 a month under a 60-month term. Enterprise projected a resale (residual) value of roughly $14,700 at the end of the term and an equity payment back to the city of about $11,528 in that example. Staff noted that results vary widely with market conditions, vehicle selection and mileage.
Council members asked operational questions, including whether vehicles could be branded with city logos and whether maintenance and telematics shops would be available locally. Staff said branding (magnet or vinyl) is feasible and that Enterprise already has nine approved shops in the Belton area. Some council members expressed caution; staff described the three-vehicle pilot as a low-risk way to test the program before committing more of the city fleet.
No formal action was taken; staff said the council will receive a resolution to join the program and specific vehicle selections for council approval in the coming weeks if the council wishes to proceed.
