Oct 24, 2024

Hays USD 489 considers contract with Enterprise for vehicles purchases

Posted Oct 24, 2024 9:45 AM
Photo courtesy of Pixabay.
Photo courtesy of Pixabay.

By CRISTINA JANNEY
Hays Post

The Hays USD 489 school board discussed entering into a contract with Enterprise to manage its vehicle fleet at its work session on Monday.

The contract with Enterprise would include all vehicles except buses.

Prior to 2019, the Hays school district bought vehicles through the state bid system at steep discounts. Staff drove the vehicles until they wore out, and then they were auctioned at low prices.

Since the pandemic, that state bid system has not been available. The district has 12 Suburban SUVs, none of which are newer than 2019.

Enterprise has several programs the districts could choose from. One includes Enterprise managing the purchases and sales of the district's vehicles.

The company also offers maintenance and fuel programs.

Both the city of Hays and Ellis County use one of Enterprise's fleet programs.

Ken Olsen of Enterprise said the purchasing and sale program allows entities to decrease their costs while operating newer, safer vehicles.

All manufacturers are available through these programs, Olsen said.

Based on its significant connections and volume, Enterprise is able to obtain 10 percent over the average auction price for most of its vehicles.

Enterprise estimates the district would save almost $89,000 over 10 years using its program to purchase and sell vehicles.

Chris Hipp, assistant superintendent for business services, said he is still calculating if the district's savings would be advised for the maintenance and gas programs.

The district now has a single staff mechanic performing vehicle maintenance. Its fleet includes 39 non-bus vehicles.

However, Russ Henningsen, transportation director, said the program would rotate vehicles about every three years, and not much maintenance would likely be needed.

The district purchases the bulk of its gas from the co-op. Enterprise provides a gas card that can be used at most stations for a 5% discount.

Enterprise also uses data from those gas purchases in maintenance and sales decisions.

Although the vehicles will be newer, Olsen said district insurance costs usually do not increase because of the improved safety features on the newer vehicles.

The district would still use local dealerships for warranty work.

Board member Ken Brooks asked how easy it would be to exit the program if the board found it was not working well for the district.

Olsen said the district would maintain a master agreement with Enterprise, but the obligation would be divided among individual vehicles. 

Board attorney Bill Jeter said he had reviewed the contract and gave his approval from a legal standpoint.

Hipp said he recommends the district involve its entire fleet for the district and Early Childhood Connections. Those two fleets must be maintained separately because of the federal funds involved with Early Childhood Connections.

The new vehicles would be phased into the fleet over several years. 

"We don't want to be worrying about a vehicle coming back from Liberal at 2 in the morning. If we are rotating vehicles out every three years, we will not even be buying tires," he said.

Hipp said the district would still benefit even if it broke even. Students and staff will be in safer vehicles, and the cost and time to repair vehicles will be less, he said.

Board vice-president Jayme Goetz said, "If we're driving vehicles until the wheels fall off, they are not safe. We are carrying precious cargo."

Monday's meeting was a work session. The Enterprise contract could be brought before the board for a vote as soon as its next meeting, which is Nov. 11.