Council tables options to lease vehicles for city staff
A lengthy discussion during the Oct. 18 Monticello City Council meeting regarding the city leasing vehicles from Enterprise resulted in a vote to table action. The council wanted to seek more information before making a final decision on the matter.
“If you’re not comfortable moving forward tonight, we can discuss it more,” offered City Administrator Russ Farnum.
Brandon Gish with Enterprise met with the council on Sept. 7 to highlight their fleet leasing program.
Farnum suggested the city start by leasing four trucks: two for Parks and Rec, one for the cemetery, and one for the Water Department. A Ford F150 would come with lease payments at $6,998; a Ford F250 would be $7,020. Each would come with a one-year lease, with the option to either buy the trucks after the lease runs out or extend the lease another year.
Farnum commented that the F250 is a better value, despite the smaller supercab version.
“At the end of the year we could buy them at $28,450 or resell them through Enterprise,” said Farnum. “The resale market is so good right now; the city could profit right now.”
Council member Dave Goedken felt the market is not so stable right now to go down this path, and asked what the above-mentioned departments have in their budgets to pay to lease these vehicles.
“We don’t typically lease vehicles, so there really is no set-aside,” Mayor Brian Wolken noted.
“We could set aside enough to buy-out at the end of the lease so we don’t have to keep extending the lease or sell and be short a vehicle,” explained Farnum.
Council member Tom Yeoman agreed that each department needed to create a set-aside fund for this purpose.
Goedken also felt that for the size of the city departments in Monticello, a new fleet of vehicles was not needed.
“It’s important to look at,” said Wolken. “We don’t have a strategy for our vehicles currently. We drive them until the wheels fall off and then look at getting something new. The best option is to look at this lease.”
Goedken said he favors the plan the city uses now, updating the vehicles with the most miles and passing the older vehicles onto another city department.
“For Parks and Rec, I don’t see justifying a new vehicle,” expressed Goedken.
The council asked whether cities in the area are leasing vehicles. Farnum shared that Mason City and Waterloo are both leasing vehicles for various city departments.
“If it was that great, everyone would be doing this,” added Goedken. “I’m not ready to get on board. We need to cycle out the trucks we put the most miles on.”
Farnum said it’s not the miles on the vehicles that poses the problem, but the rust and wear and tear on the vehicles from environmental use and being stored outside.
“I don’t think tonight is the time to be making this decision,” voiced Council member Chris Lux. “We need to include this with the budget and all at all of our options.”
Farnum reminded the council that the deadline to order vehicles from Enterprise is Nov. 7.
In other city business:
• The council requested the abatement of property taxes (accrued and future) on property located at 449 N. Sycamore St. The city recently purchased the property.
The council also approved a demolition bid from Jerry McElmeel for $6,960 to tear down the house on the property.
• The council approved increasing cemetery fees, as recommended by the Cemetery Board.
During the 2021 legislative session, a bill was passed that raises the examination fee perpetual care cemeteries pay for each certificate of interment rights issued. The bill raises the examination fee from $5 to $10.
• The council appointed HDR/Snyder & Associates/Braun Intertec as the engineers for airfield development projects at the Monticello airport.
The approval was recommended by the Airport Board.
• The council approved a memorandum of understanding (MOU) between Jones County Public Health, stakeholder members of the “JCPH Work Group,” and the City of Monticello for participation in the Work Group.
JCPH Interim Coordinator Jess Wiedenhoff presented information at a previous council meeting regarding “5-2-1-0 Healthy Choices Count” program.
Parks and Recreation Director Jacob Oswald expressed interest in being involved in the Work Group.
• The council approved a quote for $6,527.50 from Lovewell Fencing, Inc. for guardrail repair on a bridge near the park and ride on S. Main Street.
• Correction: The council article that ran in the Oct. 20 Express reported a 5-1 vote on a project at the former Compadres’ property on W. First Street. Council member Tom Yeoman abstained. The vote should have read 5-0, with one abstention. The Express regrets the error.