Navasota staff present options to phase out Enterprise lease; proposes buying 11 older vehicles and a five-year plan

City staff told the Navasota City Council they have been reviewing the city—s Enterprise vehicle lease program and presented three options for the council to consider: continue the lease program, adopt a hybrid approach, or begin purchasing older vehicles outright and phase out the lease program over five years.

Jay Chapelle, the staff member leading the fleet review, said a detailed look at the program raised concerns about whether the lease arrangement has delivered the expected savings and maintenance benefits. Chapelle said maintenance work and upfitting costs for public safety vehicles, along with the city—s recent decision to budget some emergency vehicles in the general fund, reduced the program—s apparent financial advantages.

Using Enterprise—s figures plus the city—s own auction-research, staff presented an option to buy 11 of the oldest vehicles immediately. Staff estimated the out-the-door cost to replace those 11 vehicles at about $515,000 and estimated roughly $105,000 could be recovered from buyouts and auction receipts, leaving an estimated net cost of about $400,000–$410,000 if the city buys those vehicles now.

Chapelle and other staff described how the Enterprise program typically uses auction proceeds and applies equity toward ongoing lease payments, but emphasized that Enterprise does not guarantee auction receipts and staff consider some of Enterprise—s resale assumptions optimistic. Council members voiced similar concerns: one councilmember said in 33 years of city government they had not seen fleet auction values as high as Enterprise—s estimates.

Staff stressed the proposal would not be a one-year, wholesale change. Instead, they proposed a phased transition that would begin with the oldest vehicles (model years 2008–2017 on the staff list) and might add 10–12 city-owned replacements in the first year, with a five-year target to move off the lease entirely. Staff said they would not overload the maintenance team initially and that the city could scale the maintenance services division alongside the vehicle buyback schedule.

Council and staff discussed shop capacity and equipment needs. Staff noted a vehicle lift is budgeted in this year—s budget and said long-term facility upgrades and additional staff would be needed if the city ultimately assumed ownership of its entire fleet. To augment capacity, staff proposed exploring partnerships with the Navasota Independent School District—s auto-mechanics program and summer internships to supplement routine maintenance tasks.

Staff also described procurement options and local dealer coordination: staff said local Ford and Chevrolet dealerships owned by EAG are working to be set up for government fleet sales so the city could buy on government contract and use local dealers for warranty and recall work.

Council did not take a formal vote. Staff said they will return with a five-year vehicle-replacement plan, detailed cost breakdowns, and a proposed budget amendment for any purchases the council directs in the current fiscal year. Chapelle summarized the staff view: moving to city ownership would increase local control over equipment and replacement timing, but would require phased investment in shop capacity and staffing.