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Centerton approves pilot lease with Enterprise Fleet Management to shorten vehicle replacement cycles
Summary
Council approved a resolution to enter a lease pilot with Enterprise Fleet Management (sourcewell contract) to reduce total cost of ownership by shortening vehicle cycles, adding maintenance oversight and fuel controls; staff discussed projected lease rates, use of rolling-stock bond funds and a plan to pilot about a dozen vehicles.
The Centerton City Council voted to authorize a lease agreement with Enterprise Fleet Management to pilot vehicle leasing and fleet services for several departments.
John Holland, representing Enterprise, told the council the company can use a Sourcewell cooperative contract to provide reduced pricing and a managed program that shortens average fleet life from roughly 10—5 years to four or five years. Enterprise's proposal includes acquisition, maintenance oversight with pass-through billing (no markups), fuel-card integration with exception reporting and managed resell to capture higher resale values.
Council members sought details on rates and timing. Holland described financing tied to three-year Treasury bill rates with Sourcewell spreads, estimated financing near the mid-6% range depending on vehicle and structure, and explained the flexibility to pick vehicles from dealer inventory or factory ordering. Staff discussed using bond-authorized 'rolling stock' funds as a capital resource for some vehicles if appropriate.
Council approved Resolution 2024-32 to enter the lease agreement and begin a small pilot (initial discussions mentioned around 12 vehicles split among police, public works, animal control and other departments) with detailed implementation to follow.
Next steps: staff will finalize contract terms, decide which vehicles to include in the pilot, and return to council with financing details and an implementation timeline.
