Chief Financial Officer Jonathan Pastusek presented information to Northwest ISD board members March 18 about a possible lease agreement with Enterprise Fleet Management that could save the district approximately $1.6 million over 10 years.

The details

According to district documents, the current age of Northwest ISD fleet vehicles is approximately nine years on average. Vehicles of this age can become expensive to maintain and replace.

The district documents state that Enterprise Fleet Management has a leasing program that could potentially save the district’s maintenance and operations budget $1.6 million through the following inputs:
  • Creating a life cycle that maximizes the potential equity of each vehicle
  • Leveraging bond funds
  • Lowering maintenance expenses on the general fund
  • Increasing employee safety with newer vehicles
Zooming in

Nick Hardwick with Enterprise Fleet Management, who also gave a presentation to board members March 18, said that by leasing fleet vehicles, the district would replace 76 of the oldest vehicles within 12 to 18 months with safer, newer and more efficient models. He added that the lease agreement would allow the district to retain equity from the resale of vehicles, reduce its fleet age and allow Northwest ISD to purchase vehicles quicker and cheaper.

Pastusek said that since the district doesn’t have mechanics on staff for fleet vehicles, every time one of those vehicles needs maintenance, a bus mechanic must take time away from what they’re doing to address the issue. As part of the agreement, Pastusek said that maintenance of fleet vehicles would be managed by Enterprise.

A key point that Pastusek made to board members was that currently, all fleet vehicle maintenance is paid for through the district’s maintenance and operations budget. In the interest and sinking budget, which is a separate budget and can be paid for by bonds, the district is allowed to lease vehicles to accommodate for growth.

Quote of note

“That’s a big savings that will help the M&O side that was built into the bond program,” Pastusek said. “That’s another big selling point about why this program would be so beneficial to us.”

This agenda item was for informational purposes only. No action was taken by NISD board members.