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Finance committee agrees to recommend 10‑vehicle leasing pilot with Enterprise to city council
Summary
The committee voted to recommend the city council consider a 10‑vehicle leasing pilot with Enterprise to replace aging fleet units; staff described potential maintenance savings, electrification benefits and long‑term costs and tradeoffs.
The Salinas Finance Committee voted Aug. 12 to recommend that the City Council consider a 10‑vehicle leasing pilot with Enterprise to refresh aging city fleet vehicles.
David Jacobs, fleet staff for the City of Salinas, told the committee the city’s total fleet exceeds 400 vehicles and some units range up to 20 years old. Jacobs recommended testing a leasing model to modernize a portion of the fleet and accelerate electrification.
Daniel Manning of Enterprise’s fleet management division said, “25% of the fleet is currently over 10 years old,” and described Enterprise’s proposal to shorten average vehicle cycle from roughly 12.5 years to a five‑year rotation, reduce maintenance exposure, and provide enhanced reporting through a client portal. Manning said Enterprise’s forecast shows roughly $2,359,000 in savings over 10 years driven by resale equity and reduced maintenance, and that the Sourcewell contract would be available for the city to use.
Staff presented a recommended Year‑1 package that identified 10 units for replacement at an estimated annual leasing cost of about $105,600. Staff noted seven of the ten proposed Year‑1 replacements would be electric vehicles, which could help the city meet state electrification requirements.
Committee members discussed tradeoffs. Staff warned the primary downside is committing to recurring lease payments and a fixed replacement cycle: “We buy a vehicle and we run it till the wheels fall off. Here, we actually have to buy vehicles every 5 years,” Jacobs said. Committee members asked about the ability to scale the pilot, long‑term budget impacts and exit options; Enterprise representatives said the city could buy out leases if it chose to leave the program and that lease pricing would be re‑set at each cycle.
Mayor Donahue moved that the finance committee recommend forwarding the pilot to the City Council for approval; the motion was seconded by Councilmember Margaret. On a roll call the committee recorded votes of Yes from Councilmember Margaret, Councilmember D'Arrigo and Mayor Donahue; the motion passed. Committee members said staff should return to the council with a final contract and any additional financial analysis requested by the Finance Department.
