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Council hears Enterprise presentation on vehicle-lease program to refresh aging municipal fleet

Oconto City Council · August 28, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Enterprise representatives outlined a leasing model that leverages resale gains to lower long‑term fleet costs and maintain safety equipment; council members asked about warranties, replacement timing, and budget impacts and were asked to consider starting with several vehicles.

The Oconto City Council received a presentation from Enterprise on a municipal vehicle-lease program that the company says differs from a traditional dealer lease by managing resale value and applying resale gains toward future leases.

Brad (city staff) introduced Ben Wolchast of Enterprise, who told the council the program can reduce maintenance costs and improve safety by replacing aging vehicles on a scheduled cycle and by reselling lease vehicles multiple times to compound resale gains. Wolchast said the program currently serves more than 50 municipalities in Wisconsin and described examples where resale proceeds and a structured lease schedule reduced annual net fleet costs.

Council members asked how replacement timing would be determined, whether mileage or years would trigger replacement, and who would handle maintenance and warranty claims. Enterprise representatives said the company provides year‑over‑year recommendations and will work with the city to select replacement timing based on equity position and market conditions; routine maintenance and out‑of‑warranty repairs would remain the city's responsibility. Enterprise said it would assist with warranty issues and provide a portal to track recalls and service history.

A council member noted a specific example from the materials: five squad cars outfitted with current equipment could be leased for $61,548 total, which the presenter said would be less than buying a single new vehicle with complete outfitting. Presenters and staff said the first year’s payment is prorated to months in service, which can ease budget timing in the initial budget year.

Council discussion also covered which departments (police, public works, parks) might join the program, limitations for large capitalized equipment (heavy CDL vehicles), and the potential to reuse some existing in‑vehicle equipment to save costs. No procurement decision was recorded at the meeting; presenters asked the council to consider starting with a pilot set of vehicles and follow up with detailed pricing and schedules.