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Enterprise pitches fleet‑management program to Lakeway, projects about $900,000 savings over 10 years
Summary
Enterprise Fleet Management proposed shortening Lakeway’s average vehicle hold from about 10 years to about 5 years, recommended replacing 11 vehicles in year one and estimated roughly $900,000 in cost savings over a 10‑year model while noting lease interest assumptions and resale risks.
Beau Ash of Enterprise Fleet Management told council the city operates about 74 vehicles and that roughly 30% of the fleet is more than 10 years old. Enterprise proposed replacing the oldest units—11 vehicles in the first year—and moving from a reactive purchasing model to a proactive five‑year replacement cycle. Ash said that model produced projected first‑year net savings tied back to the fleet budget and about $900,000 in cumulative savings over ten years.
Ash said Enterprise’s equity‑lease approach returns 100% of equity from resales back to the city and covers routine maintenance for the first five years under the full maintenance program. He described assumptions behind the model (example: a 3‑year T‑bill plus 350 basis points as the lease interest benchmark) and urged the council to validate references and budget mechanics. “We'd like to bring that down to a 5 year hold period,” Ash said. Council members probed the assumed lease rates, how net costs compare to the city’s current $460,000 annual average fleet budget, and whether electric vehicles could be integrated; Ash said EVs are feasible but resale and infrastructure concerns remain.
