Wellington and Enterprise Fleet Management make a verbal agreement on vehicle purchases
During the Wellington City Council meeting, there was a verbal agreement to move forward with a private company that would manage the city vehicle fleet.
The private company is Enterprise Fleet Management. A written agreement could come before the board and EFM sometime in September.
If the city were to enter into an agreement the city would save $67,000 annually for the next 10 years or $978,961 total. There is an estimation that Wellington could reduce fuel costs by over 20% and maintenance costs by close to 68%.
Wellington has a total of 59 vehicles, but 37 of them are over 10 years old and 18 of them are over 20 years old. Only four vehicles in Wellington are 10 years old or younger.
Account executive of EFM Ken Olsen attended the Wellington City Council meeting.
“Enterprise has built a financial model designed around Wellington’s fleet," said Olsen. "Given the strong government acquisition power, low mileage patterns, and the Enterprise resale abilities, this financial model will allow the city to operate a newer, more efficient fleet at a lower budget and overall cost of ownership. This will also reduce the operational fuel and maintenance penes, along with lowering the carbon footprint.”
Enterprise would assist in all aspects of the city fleet management structure from start to resale and would work with department heads to ensure the vehicles were built for specific needs.
The new vehicles will be delivered to a local dealership, then to an aftermarket vendor. After delivery, Enterprise would then pick up the aged city units and sell them on the cities behalf.
According to Wellington City Manager Shane Shields. the city will have to start slowly.
“We obviously don’t have the funds to replace 36 vehicles all at once, but we would start replacing a couple of vehicles this year, three for the next year to start the funding process,” Shields said.
If Wellington enters into a written agreement with Enterprise, it would be the 15th Kansas municipality to do so. Arkansas City, Haysville, and Goddard are using Enterprise in the south-central area.