Through the program, the city would purchase vehicles at government rates for later resell at the most value. Photo: Enterprise Fleet Management
The City of Derby, Kansas, will begin the process of replacing its existing fleet with new vehicles. On July 12, the City Council approved a resolution to enter into an agreement with Enterprise Fleet Management to eventually replace all city fleet vehicles one ton and smaller.
According to the resolution, fleet vehicle market changes have impacted budgeting and vehicle replacement planning for Derby and other Kansas communities. Through the program, the city would purchase vehicles at government rates for later resell at the most value.
"We're going to have better access to vehicles, we're going to have better vehicles, and we're going to save money," Mayor Randy White said.
Initial city vehicle sales to Enterprise are projected to generate $1.384 million. According to documents prepared by Ken Olsen, fleet consultant, it would take more than 14 years to cycle the entire fleet at current acquisition rates.
A lease term would range from 12 to 60 months with payments based on vehicle purchase price, time remaining in the fleet, and depreciation value.
Among the listed cost benefits from the partnership is an estimated fuel reduction by more than 20% with the city reducing maintenance costs by approximately 67%. The resolution summarized that Derby will be able to replace 98 of its oldest vehicles within the first five years by shifting from reactively replacing inoperable vehicles to planning vehicle purchases.
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