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Council hears fleet leasing proposal and warranty plan; staff to place warranty purchase and leasing follow‑ups on upcoming agendas
Summary
A vendor presented a municipal leasing and lifecycle program for Odessa’s 428 vehicles, pitching strategic replacement and resale that the vendor said could return roughly $4.3 million over five years; staff also recommended adding a five‑year engine/transmission warranty purchase for recently received trucks to the next agenda.
City staff and a fleet‑management vendor presented a package of proposals on Sept. 23 to address Odessa’s aging fleet, recommending both a near‑term warranty purchase for recently acquired trucks and a longer‑term municipal leasing and lifecycle plan intended to cut maintenance and fuel costs.
Reed Hoffman, representing SU Fleet Management, told council the company’s program blends life‑cycle management, resale strategy and flexible funding. "We want to find through data and analytics the sweet spot or optimal replacement period or timing for every one of your vehicles," Hoffman said, describing a program he estimated would reduce total cost of ownership and produce about $4.3 million in returned budget over five years through strategic replacement and resale.
Staff separately recommended the city consider buying five‑year extended warranties that include engines and transmissions for solid waste and public‑works trucks. City staff noted many recently delivered units lack 60‑month engine and transmission warranties; the cost of replacing a transmission was presented as between $17,000 and $27,000 and an engine overhaul between $40,000 and $70,000—figures staff used to underline the potential value of extended warranties.
Council members pressed the vendor on operational details. Concerns included warranty service turnaround time, fuel‑program integration with city fueling stations, whether mileage or wear‑and‑tear limits would apply, telematics and how the vendor would handle vehicles already purchased but delayed in delivery. Hoffman said SU prioritizes diagnostics and guarantees a faster turnaround for its fleet customers and that municipal leases in the firm’s model have no over‑mileage charges or wear‑and‑tear penalties.
The work session produced no formal council vote; staff said both the warranty purchase and any leasing contract would be presented as formal agenda items at upcoming meetings so council can take action.
Next steps: staff will place the proposed five‑year extended‑warranty purchase on the next council agenda and return with more detailed leasing terms and procurement information for council consideration.
