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Lincoln council approves 12-vehicle master lease to replace aging fleet; staff says program frees $428,000 in year one
Summary
The City of Lincoln authorized a five-year master equity lease with Enterprise Fleet Management to lease 12 replacement vehicles across public works, police, IT and code enforcement. Staff said the program will free about $428,000 in year one, with a projected $656,000 benefit over five years and an ongoing ~ $155,000 annual general-fund impact.
City Council on June 11 authorized a master equity lease agreement with Enterprise Fleet Management to lease 12 vehicles intended to replace aging city units used by public works, police, information technology and code enforcement.
Public Works Director Matthew Medill told the council the city’s light- and medium-duty fleet includes roughly 122 vehicles and that 54 are model year 2014 or older. Medill said staff engaged Enterprise about six months ago to analyze the fleet and structure a lease program that smooths capital outlays and builds equity in the fleet over time.
"We engaged Enterprise Fleet Management about six months ago…and the proposed list includes 12 vehicles for lease," Medill said. "The lease term spreads the cost over five years and allows us to advance much‑needed vehicle purchases." He also asked the council to approve a $25,000 contingency to address upfitter delays.
Kayla Hendershot of the fleet consultant presented financial modeling that, she said, shows the city would "free up about $428,000 for the city" in the first year after accounting for lease costs, maintenance and fuel, and estimated roughly $656,000 in net benefit over five years. Medill cautioned there is an ongoing general‑fund impact to the city of about $155,000 per year once the program is fully subscribed.
Council members asked about the cost difference between outright purchase and leasing. Staff said finance charges and program costs mean there is an additional cost to lease, but the city recaptures equity when vehicles are sold at the end of lease terms and scales down monthly expenses over time. Staff also discussed delivery timelines—some vehicles, including Tahoes and other replacements, may take nine to 12 months—and noted supply-chain and upfitter lead times.
Medill described steps to use energy credits from a planned solar project to lower power costs for some assessment districts and cited federal and state grants for specific equipment purchases. He said the city expects to use a $75,000 DOE EECBG grant and a $60,000 California HVIP grant toward an electric flatbed purchase tied to advanced clean-fleet requirements.
The council voted to adopt the resolution authorizing the city manager to execute the master lease agreement and related purchase orders. Staff said it will return annually with program updates and future vehicle procurement proposals.
The resolution was adopted unanimously.
