Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fleet Leasing topic
No spam. Unsubscribe anytime.
Weslaco workshop hears proposal to lease city vehicles to cut maintenance and replacement costs
Summary
D and M Leasing told Weslaco commissioners that a department-by-department leasing program could reduce downtime and maintenance costs and offered a preliminary analysis showing combined police and "white fleet" savings of about $5 million over 10 years; staff were asked to arrange follow-up analyses.
Ed Kane, a representative of D and M Leasing, told the Weslaco City Commission on Aug. 19 that the firm could manage the city's vehicle fleet and lower the city's total cost of ownership through leasing.
"We are with D and M Leasing," Kane said, introducing the company's government leasing work. He described D and M as a Fort Worth'based leasing and fleet management company that leases vehicles to state agencies and large private firms.
Jerry Haddad, senior vice president of sales for D and M Leasing, said the company uses telematics and fleet data to determine vehicle useful life and replacement timing. "Everything runs on data," Haddad said, adding that that approach lets the company "right-size" vehicles and replace them before maintenance costs spike.
Presenters drew a contrast between the city's current practice of long ownership cycles and the lease model. Haddad said leases would be customized by vehicle and use: short cycles for high-mileage patrol cars, longer terms for lighter-duty public-works vehicles, and no mileage penalties on government leases. He said leases can include maintenance programs and a fuel-card arrangement the company manages.
On projected savings, Haddad said combining the police fleet and the city's regular "white fleet" in the analysis produced an estimated $5,000,000 in savings over 10 years. He cautioned that the figure came from the presentation's high-level analysis and that a department-level review would refine estimates.
Commissioners asked about order lead times, upfitting specialty vehicles and insurance. Haddad said order-bank timing affects delivery (60—120 days for ordered units vs. 24—8 hours for in-stock units) and that municipalities typically self-insure; leases begin when a vehicle is delivered.
City staff and the presenters agreed on next steps: D and M Leasing will meet department-by-department for a detailed inventory and usage analysis, then return with a formal proposal for commission consideration. A city staff member said the commission could take action as soon as the next regular meeting or in September to authorize a fuller analysis and proposal.
No binding decision or contract was made at the workshop; commissioners asked staff to coordinate the department-level review before any authorization.
