Jackson moves to lease vehicles with Enterprise, approves agreements and first‑year funding
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Summary
Council approved a partnership with Enterprise Fleet Management to lease roughly 65 vehicles this fiscal year, passed related assignment and consignment agreements, and approved a budget reallocation of $285,390.90 to fund initial leasing.
The Jackson City Council voted to create a leasing partnership with Enterprise Fleet Management and to fund the first year of that plan through a budget reallocation. Council approved a master equity lease agreement and addenda to govern leasing through Enterprise, then approved an assignment agreement and a consignment agreement allowing Enterprise to assist with disposition of surplus vehicles.
City staff (Speaker 6) said the approach aims to modernize a fleet with many vehicles older than 10–20 years, reduce maintenance and fuel costs and lower average fleet age to about five to six years. Staff said the budget amendment passed earlier reallocates approximately $285,390.90 to leasing line items for the remainder of the fiscal year to obtain about 65 vehicles. “That frees up several $100,000 that we are going to use to pay for leasing approximately 65 vehicles for the rest of the fiscal year,” staff said during the meeting.
Council asked detailed questions: who receives the vehicles (groundskeeping, parks and rec, building and code, street department, maintenance, fire), whether the program obligates future years’ budgets (staff said no binding commitment for future years; the arrangement is governed by operating leases), and how cash flow will be handled. Staff repeatedly emphasized the plan is intended to be budget neutral over time by shifting capital needs into operating lease line items and by using proceeds from vehicle sales to help cash‑flow the leasing program.
Council discussed program scale. A model presented to council showed larger multi‑year scenarios, but city staff said the council controls yearly funding and can reduce or discontinue leasing in future years. The first‑year request to fund leasing with a budget amendment carried 8–1.
The council also approved an assignment agreement (9–0) and consignment agreement (9–0) with Enterprise to allow the company to sell city vehicles on the city’s behalf. Staff said Enterprise’s sale platform can accelerate disposition and maximize proceeds.
Next steps: Staff will present proposed yearly leasing budgets and department‑level vehicle replacement lists for council approval; proceeds from sold vehicles will be applied to leasing cash flow.
