Jan 11, 2023

USD 428 examines fleet management, discusses lease program

Posted Jan 11, 2023 1:00 PM

By MIKE COURSON
Great Bend Post

Drive it until it dies. USD 428 Great Bend Assistant Superintendent John Popp told the board of education during Monday's meeting, that the district currently uses that philosophy on its fleet of 38 vehicles. Enterprise Fleet Management Consultant Ken Olsen also spoke to the board about a program that would dramatically change how the district uses vehicles.

"Our computers are on a five-year rotation," Popp said. "Our Chromebooks are on a three-year rotation. We've never discussed a rotation for vehicles, probably because it's fairly costly to do that."

Popp outlined some of the older vehicles in the current fleet, including two special services vans with 76,000 and 150,000 miles. The vehicles are not economical at this point, and that's where the Enterprise lease program enters the picture. Olsen provided an example where Enterprise purchased trucks for a Kansas City street department for $32,000 each, then sold the trucks 14 months later for $50,000 each.

"It's a very aggressive example, but that is the philosophy: get out of these vehicles at the right time," Olsen said. "And running them out until they're dead, as Mr. Popp mentioned, is not the proper time to get rid of the vehicles, especially from a safety standpoint. When we think about our districts, the safety of not only our staff, but also the students being transported in these vehicles is very important."

Enterprise has access to all makes and models for potential district use, including the Chevy Traverse.
Enterprise has access to all makes and models for potential district use, including the Chevy Traverse.

According to Olsen, Enterprise works with various government entities, specializing in those with fleets of 20-300 vehicles. The company currently has agreements with school districts in Haysville, Goddard, Wichita, and Olathe, among others. Enterprise offers great flexibility in how the districts can use the lease program, from swapping out portions of the fleet at a time to switching out entire fleets at once. The company would meet with district staff several times a year to ensure it is capitalizing on the peak value of the vehicles.

"I don't want you to go into this, as Mr. Popp mentions, that we're going to profit on every single vehicle," Olsen said. "It's about reducing the budget, operating a more efficient fleet of vehicles. The key piece is, at every step of the way, and we're looking out 10 years here, but at every step of the way in the future, we want to be a partner and help you and guide you."

Popp said an updated fleet of vehicles would eliminate the costs of upkeep. Director of Grounds and Transportation Cody Schmidt mentioned one problematic van, and that losing just one vehicle in a day can create significant scheduling issues.

"We have nine current emails on going on that one vehicle this year alone," Schmidt said. "It's just a continuous problem. You think you solve one problem and here comes the next. That's something we're battling daily."

Olsen said approximately 95 percent of purchases would come directly from vehicle manufacturers. Board member Lori Reneau asked if local dealers would still be involved, and Olsen replied they would via delivery fees and possibly maintenance contracts.

Board member Chris Umphres asked whether vehicles with specialized equipment would be impacted, and Olsen replied that heavier-duty vehicles with more equipment would likely be used by the district longer. Board member Deanna Essmiller asked if a fleet of 38 vehicles was really necessary, to which Schmidt said the district does have shortages, especially in the summer.

Per Olsen's presentation, the district could switch out 23 of its oldest vehicles the first year and save approximately $89,000. All vehicles would be switched out by year six, and the district's savings over the course of 10 years would approach $359,000. The district could exit the program at any point and collect on the value of the vehicles being leased.

Monday's presentation was merely informational. The district will continue to examine the issue and discuss ways to move forward.