A proposal to switch out the most of the county's current fleet of vehicles to a national vendor to manage and maintain the fleet could save the county as much as $80,000 a year, according to a proposal presented to the Legislature's Public Service Committee on Tuesday.
Enterprise Rent-a-Car provides the same service to several other counties in New York, said Representative Jimmy Adams, and those counties have achieved the anticipated cost savings and seem satisfied with the service.
The program will start with Enterprise taking 47 of the vehicles in the county's fleet now and selling them at an estimated total of $580,000 returned to the county. Enterprise would then replace those 47 vehicles with 47 new vehicles, purchased at the typical discounted government bid rate, and the county would make payments on those vehicles.
Legislature Chairman Ray Cianfrini wanted to know if Enterprise would guarantee that the 47 vehicles would sell for at least $580,000 and Adams said, in a word, no.
"We are very conservative (in our estimates)," Adams said. "We have a remarketing manager who is in our Rochester office. His sole job is to go through, give these values to new clients and current customers and make sure those are values we can live up to because we know at the end of the day, if we don't we're going to be in meetings similar to this and explain why we missed."
County Manager Jay Gsell said doesn't expect any surprises when Enterprise puts the vehicles on the market.
"Based on the current age of our fleet and the condition in which the motor pool maintains those, I don't think we've got any hidden upsets as far as that's concerned, but there is nothing absolute in terms of what the whole 47 will generate in net value," Gsell said.
The other potential problem, Cianfrini said, is what if the partnership doesn't work out and the county wants out of the deal. He thinks the county will be out 47 vehicles and will need to buy 47 vehicles.
Adams said, first, that has never happened with one of these vendor arrangements for a government entity, and second, even if that were the case, the county will be in a "positive equity position" on each vehicle because the government bid price on the vehicles is so low. Over the first year or so of such an agreement, the county would be paying down the principal owed on each vehicle and if Enterprise sold the car at that point, "Enterprise would be writing a check to the county," Adams said.
That positive equity position would make it easier, Adams said, for the county to walk away from the deal if it decided to go that route.
There are also potential cost savings because Enterprise will be responsible for maintenance and mechanical repairs on the vehicles, which could mean the elimination of a mechanic's position from the county's budget. Cianfrini suggested that instead of eliminating a job, perhaps that service could be sold. Gsell said the county has a history of not competing with private enterprise and thought it would be logistically difficult to offer that service to another county. Committee Chairwoman Shelly Stein noted that Tim Hens, county highway superintendent, has said (he wasn't at the meeting) that there is plenty of backfill work that is going undone that could be done if a mechanic was freed up from his current duties.
A state audit found a flaw in how the county was accounting for its fleet expense and this agreement would help resolve that issue, Gsell said, which is one reason why he's recommending the Legislature move on the proposal this budget year instead of waiting until 2018.
