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Board split over leasing program for township fleet; staff to request lease-fee scenarios
Summary
Finance staff described a leasing option from Enterprise Fleet Management that could smooth budgeting and reduce staff time, while one supervisor said leasing would add finance charges and surrender resale timing control; staff will request detailed fee scenarios for multiple lease terms.
Staff presented follow-up information on a fleet-management strategy introduced May 13 and described Enterprise Fleet Management’s leasing structure as an option to replace the Township’s current practice of purchasing vehicles outright.
Finance Director Caroline Partridge explained how equity at lease end depends on initial down payment and resale value; she said leasing could broaden procurement sources, reduce staff time procuring and selling vehicles, and provide predictable annual costs that smooth budgeting. Partridge said, "Under certain scenarios, the Township may have to pay at the end of the lease but added that if the Township put down $10,000 for example, then $10,000 would be guaranteed to be returned to the Township at the end of the lease." (paraphrased from staff explanation)
Township Manager Pam Gural-Bear and other members noted the program’s procurement advantages. Vice Chair Rajesh Kumbhardare said he is not in favor of leasing because it would require paying finance charges and could transfer discretion over resale timing to the leasing firm, which might sell when it chooses rather than on the Township’s schedule.
Board members asked staff to return with fee estimates for several scenarios (for example, five-year lease terms and variations in down payment) so the board can compare total lifecycle costs between leasing and outright purchase. No final decision was made at the meeting.
