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WILKES-BARRE — The city could potentially save hundreds of thousands of dollars by leasing its fleet of Department of Public Works vehicles, council was told Tuesday.
The program differs from closed-end leases through dealers and instead offers open-end financing, explained Nick Gilbert, a senior account executive with Enterprise Fleet Management’s Harrisburg office.
“We’re essentially a bank leasing vehicles back to you guys,” Gilbert told council during its work session. The company participates in the Interlocal Purchasing System that has the same procurement standards as the state’s COSTARS cooperative purchasing program, he said.
The company aims to reduce down time and maintenance costs and updates the fleet with new vehicles, Gilbert said, adding “That’s where we’re going to save you the most money.”
Ed Feist, director of finance with Enterprise, estimated the savings at $400,000 through fixed budget maintenance and resale over 10 years for the full fleet of 24 vehicles. When Enterprise resells a vehicle at the end of lease for more than the book value, the city receives the excess proceeds.
Rick Gazenski, city administrator, and Butch Frati, director of operations for the city, supported the proposal.
“The timing of this whole thing is now,” said Frati, explaining the time it takes to order and equip vehicles, such as garbage compactors. “We really need council to look at this now and make a decision now so we know what direction to go.”
Gilbert pointed out the Wyoming Valley Sanitary Authority and Lackawanna County participate in Enterprise’s program. He also also noted the urgency for council to act. Manufacturers increase the cost of vehicles throughout the model year and that would affect the savings to the city, he said.
Council asked Gazenski to check with the city’s financial adviser, the PFM Group, about the proposal before putting it on the agenda for Thursday’s public meeting.