HomeMy WebLinkAboutItem 6a. Adopt a Resolution approving the Updated Fleet Replacement Policy Item 6a
Department: Public Works
Cost Center: 5008
For Agenda of: 9/6/2022
Placement: Business
Estimated Time: 30 minutes
FROM: Matt Horn, Public Works Director
Prepared By: Greg Cruce, Deputy Director – Maintenance Operations
SUBJECT: ADOPT A RESOLUTION TO APPROVE THE UPDATED FLEET
REPLACEMENT POLICY
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving the Fleet Replacement Policy, Section 405 of the City’s
Financial Management Manual” to serve as an interim document until Section 405 of the
Financial Management Manual is updated.
POLICY CONTEXT
In September 2020, City Council approved Resolution No. 11159 (2020 Series), which
includes the goal of community-wide carbon neutrality by 2035 and municipal operations
carbon neutrality by 2030. In August of 2021, Council adopted the “Lead by Example”-
Plan for Carbon Neutral City Operations, and adopted Climate Action, Open Space, and
Sustainable Transportation as a Major City Goal.
DISCUSSION
Background
The Fleet Services Program within the Public Works Department is responsible for the
maintenance, repair, procurement, and disposal of a majority of the City’s fleet assets.
The City prepares a two-year Financial Plan and appropriates a one‐year budget. The
Capital Improvement Plan programs a five-year list of projects and fleet replacements.
Funding is specifically allocated for each identified asset, and all replacements were
historically recommended based on the vehicle age, condition, and other indicators within
Section 405 of the City’s Financial Management Manual.
Staff began working on the updated Fleet Replacement Policy (Attachment A) prior to the
adoption of the 2021-23 Financial Plan. This work effort to revise the updated policy was
completed after the start of the current Financial Plan. Since the completion of the
document, staff has used the updated Fleet Replacement Policy for all vehicle purchases,
and the document has proven effective in meeting the City’s visionary and ambitious plan
for Carbon Neutral City Operations by 2030. This plan identifies specific metrics for the
City’s fleet which aim to:
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Item 6a
1. Achieve 100% all-electric light duty vehicles, excluding long range and certain
public safety vehicles.
2. Achieve 50% zero emissions medium and heavy-duty vehicles.
3. Achieve 100% all-electric transit fleet.
4. Achieve 100% all-electric equipment, excluding certain heavy-duty equipment,
pumps, and backup generators.
This policy only applies to the tools, vehicles, and equipment managed by the Fleet
Services Program in the Public Works Department. This policy does not apply to other
programs and departments within the City and specifically does not apply to Transit
Vehicles (Buses) or Fire Apparatuses (Fire Engines, Ladder Trucks, etc) as this
equipment is managed by Transit Program and the Fire Department, respectively. Transit
Vehicle electrification is already underway with two electric buses already purchased and
are currently being built with another six transit vehicles funded by a recent grant.
The interim policy used the existing framework of Section 405 of the City’s Financial
Management Manual, which includes important provisions such as maintaining the proper
fleet size, purchasing new versus used, target replacement guidelines, and unscheduled
replacements with a greater emphasis on environmental stewardship. Two notable
additions to the interim policy are the flowchart for decision making by staff when
determining the need for a fleet replacement and a section to determine the appropriate
replacement fleet asset type (i.e., electric, hybrid, gas, or diesel). These tools are intended
to easily guide staff to the appropriate sustainable option that will meet the needs of the
operating program. Should the vehicle need not be met by a n electric or hybrid option,
City Manager approval will be required prior to the purchase.
An addition to the proposed policy is the consideration of sustainable vehicle
infrastructure. The City currently owns 21 Type Two public electric vehicle chargers in the
downtown core. Six Type Two chargers are scheduled to be installed at th e City’s
Corporation Yard by the end of September. Staff is also pursuing design-build options
for delivering future electric vehicle charging projects at the Parks and Recreation and
Utilities Administration Buildings for City Fleet charging needs, as well as other future
project sites.
During the planning of the 2021-23 Financial Plan, many scheduled light and medium
duty vehicle replacements were deferred to allow for advancements in the electric vehicle
market. As a result of deferring purchases, the Fleet Maintenance operating budget was
augmented to account for increased maintenance needs. Although the updated policy
has not been formally adopted by the City Council, staff has implemented the document
in the fleet procurement plan that was included in the 2021-23 Financial Plan. Even with
global supply chain issues caused by the pandemic, the City has recently taken delivery
of one Ford Lightening (all electric ½ ton pickup truck) and three Chevrolet Bolts (electric
sedan). An additional seven Ford Lightening remain on order with no expected delivery
date at this time.
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Item 6a
Public Engagement
The Updated Fleet Replacement Policy was presented to Fleet Operators that are part of
Central Coast Community Energy (CCCE) who were supportive of the document. Public
comment on the item can be provided to the City Council through written correspondence
prior to the meeting and through public testimony at the meeting.
CONCURRENCE
The Public Works Department and the Office of Sustainability has presented the draft
Fleet Replacement Policy to all Departments who reviewed the document and provided
feedback that was incorporated appropriately.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
Due the recent adoption of electric vehicle use by the City, total cost of ownership data is
not available. Electric and sustainable vehicles have a higher purchase price compared
to traditional models. Despite a higher upfront cost, the City is anticipating a lower total
cost of ownership with electric and sustainable vehicles due to the state and local rebates
and incentives, reduced maintenance, and lower cost of electricity compared to fuel. The
2023-25 Financial Plan CIP Fleet Replacements will appropriately reflect the Updated
Fleet Replacement Policy.
All fleet purchases and replacements are considered during the preparation an d part of
the two-year Financial Plan and annual budget appropriation.
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Item 6a
ALTERNATIVES
Council could decide not to approve the proposed Fleet Replacement Policy. The
City Council could choose not to approve the Fleet Replacement Policy at this time. This
alternative is not recommended due to the vital role this document serves in achieving
the City’s ambitious carbon natural goals.
ATTACHMENTS
A - Draft Fleet Replacement Policy
B - Draft Resolution adopting the Fleet Replacement Policy
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Fleet Vehicle Replacement Policy
PURPOSE
The purpose of this policy is to document the criteria, including the evaluative process and cycle
time for replacement of City vehicles and equipment that are managed by the Fleet Services
Program within the Public Works Department. This policy does not apply to tools, vehicles, and
equipment managed by other programs and departments within the City and specifically does not
apply to Transit Vehicles (Buses) or Fire Apparatuses (Fire Engines, Ladder Trucks, etc).
This policy addresses typical fleet replacement cycles as well as fleet replacement cycles when
the organization has implemented spending controls such as the Fiscal Health Response Plan
(FHRP) or the Fiscal Health Contingency Plan (FHCP). This policy will aid staff when determining
whether a fleet asset should be replaced.
The City has implemented a Fleet Replacement Fund that is used to provide funding for future
fleet replacement needs and provides a reserve balance that Council may appropriate when
unforeseen Fleet asset replacement is necessary. The Fleet Replacement Fund is funded
through the General Fund or the appropriate Enterprise Fund.
Under this policy, Fleet Expansion needs are suggested to be addressed during the adoption of
the City’s two-year Financial Plan so that vehicle and equipment needs can be evaluated in the
context of the City’s entire budget and workplan strategies. This policy focuses on Fleet
Replacement. Lastly, the infrastructure required to transition the City to a “Green fleet” is
referenced in this Policy and should be addressed in separate capital projects established as part
of the two-year Financial Plan.
Definitions
Vehicle any car, truck or piece of equipment that requires a valid driver’s license to operate issued
by the California Department of Motor Vehicles and is serviced or maintained by the Fleet
Services Program within the Public Works Department.
Equipment any mechanized device or tool that is serviced or maintained by the Fleet Services
Program within the Public Works Department.
Fleet Replacement is the replacement of an existing vehicle or piece of equipment at a one-to-
one ratio. The total number of assets managed by the City does not increase by replacing
vehicles or equipment.
Fleet Expansion is an increase in the total number of vehicles or pieces of equipment. The total
number of assets managed by the City increases to either address an existing deficiency or
provide an expanded service level to the Community.
Catastrophic Failure is sudden or total failure of a vehicle or equipment where the cost of repair
is:
50% of the current value of the vehicle or piece of equipment, or
25% of the replacement cost, or
as recommended by the Fleet Maintenance Supervisor and approved by the City Manager
or City Council as a financially prudent action.
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Fleet Vehicle Replacement Policy
Hybrid Vehicles are vehicles that use both fossil fuels (gas, diesel, propane, natural gas, etc.)
and electric energy to provide propulsion.
Plug-In Hybrid Vehicles are vehicles that use both fossil fuels (gas, diesel, propane, natural gas,
etc) and electric energy to provide propulsion. These vehicles can plug in to electric vehicle
chargers and operate in an all-electric mode.
Electric Vehicles are vehicles that use only electric energy to provide propulsion.
Green Vehicles are Hybrid, Plug-In Hybrid and Electric Vehicles.
FLEET REPLACEMENT
The Fleet Maintenance Supervisor is responsible for the acquisition, replacement, and disposal
of all assets that are managed by the Fleet Services Program. The goal of the City’s Fleet
Replacement Policy is to address operational needs, at the lowest long-term cost, that replaces
necessary assets consistent with the City’s goal of carbon neutral municipal operations by 2030.
Balancing these needs is the responsibility of the Fleet Maintenance Supervisor. During times of
economic crisis when spending controls such as the Fiscal Health Response Plan (FHRP) or the
Fiscal Health Contingency Plan (FHCP) are triggered, Fleet Replacements are to be strictly
limited as discussed below. Only those Fleet Replacements as recommended by the Fleet
Maintenance Supervisor and approved by the City Manager or his or her delegate will be
implemented. Maintaining the maximum amount of capital in the Fleet Reserve in times of
economic stress can increase operational costs and impact staff efficiency but provides
organizational flexibility to address changing economic conditions and needs.
ALIGNMENT WITH COUNCIL-APPROVED GOALS
Economic & Environmental Stewardship Criteria
In September 2020, City Council approved Resolution R-11159, which includes the goal of
community-wide carbon neutrality by 2035 and municipal operations carbon neutrality by 2030.
In August of 2021, Council adopted the “Lead by Example” plan, which includes the goal that,
“the City eliminates fossil fuel use in vehicles and equipment fleet”, as well as the following
objectives:
1. Achieve 100% all-electric light duty vehicles, excluding long range and certain public
safety vehicles.
2. Achieve 50% zero emissions medium and heavy-duty vehicles.
3. Achieve 100% all-electric transit fleet.
4. Achieve 100% all-electric equipment, excluding certain heavy-duty equipment, pumps,
and backup generators.
To “lead by example” and to achieve these goals, the City needs to immediately avoid purchasing
fossil fueled assets unless absolutely necessary, and needs to accelerate the transition to green
vehicles (as previously defined). The criteria to support fossil-fueled vehicles and equipment
purchases is covered later in this document.
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Fleet Vehicle Replacement Policy
To support this rapid transition to green vehicles, the City must continue to use fleet management
software to assess total life-cycle costs of assets (including fuel and maintenance), plan for and
find innovative ways such as grant funding and future CIP projects to fund or finance charging
infrastructure and be open to innovative solutions. Sustainability considerations extend to reuse
of accessory equipment to the vehicles including components of new truck builds such as cranes,
welders, utility beds, etc. Economic and Environmental Stewardship criteria include:
1. Minimize fleet life-cycle costs: Maximizing the service life of an asset decreases capital
outlay costs, but as an asset ages, operations and maintenance costs typically increase
as the resale value of the asset sharply decreases. Additionally, while electric vehicles
may currently have higher initial costs, fossil fuel costs are typically much higher than
electricity costs and electric vehicles have substantially fewer maintenance requirements.
Due to these factors, electric vehicles purchases are expected to have a similar life cycle
cost as non-green vehicles.
2. Minimizing the number of fleet assets: Maintaining, reducing, and limiting the number
of added fleet assets is financially and environmentally beneficial in reducing the demand
of raw materials necessary to build these assets. Fleet expansion must be limited and
only implemented for life safety purposes, greatly increased operational efficiency, or to
implement community service priorities.
3. Replacing assets with previously owned assets: Vehicles and equipment approved for
replacement should consider all avenues for purchasing, including previously used
vehicles and equipment. This type of asset replacement decreases capital outlay costs
and demand for raw materials necessary to build new assets.
Leading by example: Replacing assets with green vehicles helps achieve Council’s goals of
carbon neutral municipal operations and demonstrates the City’s commitment to sustainable
practices, reduces fuel and maintenance cost, and encourages the industry to innovate new
products that meet these needs and increase demands for green vehicle technology.
Green Vehicle Infrastructure Considerations
The availability of onsite charging infrastructure at City buildings and facilities directly impacts the
ability of the City to procure and maintain a fleet of electric vehicles as existing assets are
replaced. The City currently owns and operates 21 public Type Two electric vehicle chargers in
the downtown core. An additional funding investment of $100,000 per year for vehicle chargers
are identified in the 2021-23 Capital Improvement Plan (with an additional $100,000 per year
identified in years 3-5 of the Capital Improvement Plan). These locations include Fire Station #1,
SLO Swim Center, City Hall, 919 Palm Street, Parks and Recreation, Corporation Yard, and
Utilities Administration. The full extent of charging needs is uncertain at this point. As more
vehicles are purchased, daily use versus maximum range will need to be evaluated with a
charging schedule implemented to ensure the charging demands are met.
REPLACEMENT EVALUATION PROCESS
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Fleet Vehicle Replacement Policy
A. Assess Need for Replacement of Fleet Asset
Each Fleet Asset Replacement is subject to an audit of use and need to ensure a
replacement is necessary and compatible with current needs. The Fleet Maintenance
Supervisor reviews asset use, including hours of operation, age of asset and discusses
operational impacts of not replacing and/or sharing an asset with operating programs. The
Fleet Maintenance Supervisor will identify assets that are appropriate to be replaced as
well as assets that may be shared between operating programs and departments to
complete the necessary work. Ownership of Fleet Assets is costly, both at the initial
purchase and over the asset’s lifespan. Only those Fleet Assets that are absolutely
necessary, as determined by the Fleet Maintenance Supervisor, in consultation with the
operating program or department, and approved by the City Manager or City Council are
to be replaced. The decision makers for these purchases will be the Fleet Maintenance
Supervisor, Department Head, CIP Review Committee, City Manager, and, if required,
City Council (see Purchasing section below).
Figure 1. Determining Need for Fleet Replacement.
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Fleet Vehicle Replacement Policy
B. Determine Type of Fleet Asset to Address Replacement Need
Vehicles scheduled for replacement or damaged beyond repair, requiring replacement,
shall be assessed by the Fleet Maintenance Supervisor, and must be reviewed to
determine if replacement with a Green Vehicle can be achieved and still largely meet
operational needs. All vehicle and equipment replacements must be selected to obtain
the cleanest emissions possible that can be fueled and/or charged locally while meeting
operational needs. When diesel powered vehicles or equipment is required, the equipment
must be capable of using renewable diesel since Public Works, Fleet Services only
purchases a blend of 90% renewable diesel and 10% biodiesel.
After the Fleet Maintenance Supervisor concurs with the need to replace an asset and if
this asset use is primarily for transportation, the Fleet Maintenance Supervisor will review
replacement options with the operating program. All vehicles primarily used for
transportation that meet replacement criteria will be replaced with either an electric
bicycle/scooter as vehicle use allows, or an electric vehicle. The Fleet Maintenance
Supervisor will have the ability to identify and recommend exceptions to this policy based
on specific vehicle use and other considerations. When determining the type of fleet asset
to address replacement needs, including instances of policy exception, the following order
of priority shall be followed:
1. Electric Bicycle / Scooter offer the same benefits as traditional bicycles including
improved health and connection with community as well as removing barriers of
traditional bicycles such as climbing hills. This option is best implemented when a
vehicle being replaced is typically used for around town single occupant trips and
where access to traditional transportation vehicles is readily available in case of
inclement weather. The purchase and maintenance of Electric Bicycles will be the
responsibility of the assigned Program/Department.
2. Electric Vehicle: All sedan replacement vehicles will be all-electric. Should a
department request an alternative, they will be required to demonstrate why an all-
electric vehicle is not acceptable to the satisfaction of the Fleet Maintenance
Supervisor The occasional need for long-range travel is not justification to purchase a
gasoline powered vehicle over all-electric. A rented vehicle from a nationwide vendor
is preferred for all long-distance travel, to limit accident liability and will also provide
enhanced roadside emergency needs such as flat tire repair, dead battery assistance,
etc. All-electric vehicles provide cost and operational savings due to reduced fueling
cost and reduced maintenance needs. All-electric vehicles also provide a smoother
and quieter driving experience and reduce impacts to the environment.
3. Gas / Electric Plug-in Hybrid: Offers the advantage of short range, all-electric
operation after recharging, without concerns of running out of energy. Plug-in hybrids
are preferred over conventional hybrid designs due to higher overall average miles per
gallon (MPG), and lower overall emissions. Gas / Electric Plug-in Hybrid vehicles could
be a feasible option for vehicle replacement when/where access to onsite charging
infrastructure is limited and vehicle need includes intermittent and/or unpredictable
short and long-range use.
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Fleet Vehicle Replacement Policy
4. Gas / Electric Hybrid: Gas / Electric Hybrid vehicles are an incremental improvement
over gas vehicles due to their higher MPG. While this reduced dependency on
charging stations could increase the amount of greenhouse gas emissions, this is a
strong option for utility equipment. Gas / Electric Hybrid vehicles could be a feasible
option for vehicle replacement when/where access to onsite charging infrastructure is
limited or unavailable and plug-in hybrid vehicles are not available.
5. Gas Vehicle: As compared to diesel assets, gas vehicles produce less greenhouse
gas emissions and require less costly maintenance. All gas vehicles and equipment
are more desirable than diesel vehicles and less beneficial than green vehicles. Gas
vehicles could be a feasible option for vehicle replacement when and where access to
onsite charging is unavailable, or for certain public safety and other long-range uses.
The purchase of all gas vehicles must be approved via a City Manager report that
shows that all alternatives have been exhausted.
6. Renewable Diesel: Some equipment and utility vehicles necessary for City operations
and currently only available as diesel options. While this is the last choice for
equipment replacement, some equipment must be diesel. The City uses renewable
diesel fuel to decrease impacts to the environment as compared to standard diesel
fuel.
Each unit replacement will comply with the City’s Purchasing Policy, have the best fuel-
efficiency, and the lowest emissions available while performing its primary program use.
Incidental or occasional program uses should not compromise good fuel-efficiency and
low emissions. For example, if the primary use is local transportation for one or two
persons, then a small or ultra-small vehicle is preferred. If the program occasionally needs
a larger vehicle to transport three or four persons to an out-of-town conference, such a
vehicle should be rented or borrowed from another program.
Typical Replacement Criteria
Vehicles and equipment being considered for replacement shall be reviewed by the Fleet
Maintenance Supervisor and shall use the following factors:
1. Compliance with existing laws or regulations: Most all vehicles and equipment must
comply with various local, state, and/or federal regulations. Replacement is accelerated in
case of existing or predicted non-compliance. All efforts must be made to procure vehicles
and equipment that will remain compliant throughout the asset’s life cycle, but changes to
regulations can dictate accelerated replacement of a mechanically sound asset.
2. Total and projected engine hours and mileage prior to replacement: Historically,
vehicle mileage has been a primary measure used to predict replacement needs. With
newer vehicle technology, the ability to track engine hours is more available and a better
indicator of use and replacement needs. Although mileage targets should be considered
in replacement decisions, engine hours can provide better insight into vehicle utilization
and engine condition. Utility vehicles often require engines to remain running to power
auxiliary equipment and tooling, which can result in significantly higher engine wear, then
mileage readings would predict.
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Fleet Vehicle Replacement Policy
3. Age: Vehicles and equipment consist of numerous different systems that contain
components such as seals, gaskets, computer modules, electrical wiring, rubber hoses
and protective coverings that deteriorate over time. Aged components can lead to ongoing
and time-consuming repairs or cause major component failure. Older fleet assets may
lack technological and performance advancements that improve operational eff iciency,
provide increased operator safety and have older emissions systems that have greater
impacts on the environment.
4. Known Manufacture Problems: Manufacture design defects can contribute to increased
maintenance and repair costs and decrease operational goals due to excessive downtime.
5. Repair Cost History: Maintenance and repair costs influence the need to accelerate or
extend replacement of a fleet asset. Accelerated replacement may be recommended by
Fleet Maintenance Supervisor to eliminate high ongoing repair expenses and costly
downtime. Vehicles with low historical maintenance and repair costs may not be replaced
to reduce capital expenditures.
6. Use: Vehicles use is an important factor to determine when and what type of replacement
asset will be selected. Some vehicles are used in an extreme work environments and
manner that results in high wear. The replacement vehicle should be selected to meet the
demands required. Vehicles that are underutilized are evaluated to determine if the vehicle
is needed or if it may be reassigned to increase use.
7. Fleet Maintenance Supervisor Determination: All efforts should be made to align fleet
replacements with the below thresholds; however, the Fleet Maintenance Supervisor shall
have the authority to expedite replacements based on their best professional knowledge
in compliance with this policy’s objectives.
The following table shows the age and mileage expected from an asset before replacement
consideration. These replacement thresholds were developed using APWA best practices,
consultant recommendations, and align well with Fleet Services observations of mechanical
failures and asset operational costs:
Vehicle or Equipment Category Age
(Years) Mileage Hours
Construction Equipment
Asphalt Grinder 12-16 NA 5,000
Asphalt Paver 12-16 NA 5,000
Backhoe Loader 12-16 NA 5,000
Crack Sealer 12-16 NA 5,000
Dozer 12-16 NA 5,000
Excavator 12-16 NA 5,000
Forklift 12-16 NA 5,000
Roller Compactor 12-16 NA 5,000
Skid Steer Loader 12-16 NA 5,000
Wheel Loader 12-16 NA 5,000
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Fleet Vehicle Replacement Policy
Vehicle or Equipment Category Age
(Years) Mileage Hours
General Purpose Vehicles (Includes Admin & Support Vehicles for Police)
Sedan 12-15 100,000 8,000
Light Duty Truck (Under 1 Ton) 12-15 100,000 8,000
Medium Duty Truck (1 to 2 Ton) 12-15 100,000 8,000
Heavy Duty Truck (Over 2 Ton) 12-15 100,000 8,000
SUV 12-15 100,000 8,000
Van 12-15 100,000 8,000
Public Safety Vehicles
Police Patrol Motorcycle 8-10 30,000 5,000
Police Patrol Vehicle 5 100,000 10,000
Police Detective Vehicle 10-12 100,000 10,000
Specialty Equipment
Vacuum Excavator 10-12 NA 5,000
Valve Turning Machine 15-20 NA 5,000
Wood Chipper 10-12 NA 5,000
Specialty Vehicles
Aerial Lift Truck 10-12 75,000 5,000
Heavy Duty Dump Truck 15-20 150,000 10,000
Heavy Duty Roll Off Truck 15-20 150,000 10,000
Street Sweeper Truck 10 60,000 10,000
Vacuum Hydro Cleaner Truck 15 100,000 10,000
Water Truck 20 100,000 10,000
Tractors, Mowers, & Attachments Age Mileage Hours
Aerator 15 NA NA
Mower 10 NA 5,000
Top Dresser 20 NA NA
Tractor 12-16 NA 5,000
Turf Sweeper 20 NA NA
Other Equipment & Vehicles
ATV 15 NA 5,000
Boat 20 NA NA
Generator 20 NA 4,000
Parking Enforcement Scooter 12 50,000 5,000
Trailer 20 NA NA
Utility Carts 15 NA 5,000
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Fleet Vehicle Replacement Policy
Purchasing
Fleet replacement purchases for vehicles that have been budgeted and funded for replacement
in the two-year Financial Plan shall comply with the City’s Purchasing Policy and any other
emergency fiscal policies adopted particularly during economically uncertain times.
Unbudgeted vehicle replacements due to catastrophic failure that are not currently funded for
replacement require City Manager authorization if the purchase is within the Department Head’s
purchasing authority. These purchases shall be funded from the Fleet Replacement Fund when
funding is sufficient for the unbudgeted purchase. City Council action may be required if
appropriation of funding from the Fleet Replacement Reserve fund is necessary.
Timely Disposal of Replacement Units
Replacement of units shall not be a strategy to expand the fleet either temporarily or permanently.
When an asset is replaced, it will expeditiously be declared surplus and be disposed, except that
the Department Head in consultation with the Public Works Director may approve a one-time per
vehicle temporary retention and use not to exceed 180 days.
1. One surplus sedan or pickup per mechanic in the Fleet Services Program for loaner
vehicles to be used by programs while their vehicles are being serviced.
2. One surplus backhoe/loader for light duty use at the Corporation Yard.
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R _______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE FLEET REPLACEMENT
POLICY, SECTION 405 OF THE CITY’S FINANCIAL MANAGEMENT
MANUAL
WHEREAS, on August 18, 2020, the Council adopted Resolution No. 11159 (2020
Series), which approved the Climate Action Plan for Community Recovery, adopted a
goal of community carbon neutrality by 2035, and approved associated California
environmental quality act greenhouse gas emission thresholds and guidance including a
negative declaration of environmental review (eid0275-2020); and
WHEREAS, on July 6, 2021, the Council adopted Resolution No. 11263 (2021
Series), which approved Lead by Example: A Plan for Carbon Neutral Municipal
Operations (Lead by Example) and established a goal of municipal operations carbon
neutrality by 2030; and
WHEREAS, the Lead by Example plan reports that fleet vehicle usage accounts
for 39 percent of the City’s operational emissions and sets a goal that the “City eliminates
fossil fuel use in vehicle and equipment fleet" with specific objectives to, among other
things “achieve 100% all-electric light duty vehicles (excluding certain long-range and
public safety vehicles)” and “achieve 50% zero emissions medium and heavy -duty
vehicles” by 2030; and
WHEREAS, the City is currently installing electric vehicle charging inf rastructure
to support achievement of these goals and object ives; and
WHEREAS, the Pacific Gas & Electric EV Fleet Electrification Planning calculator
shows that the total cost of ownership for an electric fleet vehicle is cheaper than an
equivalent fossil fuel vehicle; and
WHEREAS, replacement of City fleet vehicles and equipment with green options
is critical to achieve the goals set forth in Resolution No. 11159; and
WHEREAS, the proposed Fleet Replacement Policy will ensure the City is
selecting the appropriate green vehicle options.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
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Resolution No. _____ (2022 Series) Page 2
R _______
SECTION 1. Council authorizes staff to implement the Fleet Replacement Policy
Section 405 of the Financial Management Manual.
Upon motion of ___________, seconded by ____________, and on the following
roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of ____________________ 202 2.
___________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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Fleet Replacement PolicySeptember 6, 2022
Recommendation:Adopt a Resolution Approving the Updated Fleet Replacement Policy
BackgroundPrior to drafting the Updated Fleet Replacement Policy, the Public Works Department used Section 405 of the City’s Financial Management Manual when determining fleet replacements.Section 405 incorporates the same criteria for fleet replacements but does not adequately address the City’s Carbon Neutral Goals and the importance fleet replacements play in these goals.The existing policy also did not address fleet replacement during times of economic crisis when spending controls such as the Fiscal Health Response Plan or the Fiscal Health Contingency Plan are implemented.New technologies has also led to the revision of certain fleet and equipment replacement thresholds.
Fleet Services ProgramAdministered by Public Works DepartmentResponsible for the maintenance, repair, procurement and disposal of the City’s fleet assets.CIP programs a five-year list of projects and fleet replacements.
Updated Fleet Replacement PolicyPurpose: To document the criteria, including the evaluative process and cycle time for replacement of City vehicles and equipment that are managed by the Fleet Services Program within the Public Works Department.Does not apply to Transit Vehicles (Buses) or Fire Apparatuses (Fire Engines, Ladder Trucks, etc. Addresses typical fleet replacement and fleet replacement cycles when the city has implemented spending controls.
Updated Policy Aligns with Council-Approved GoalsIn September 2020, City Council approved Resolution R-11159, which includes the goal of community-wide carbon neutrality by 2035 and municipal operations carbon neutrality by 2030. In August of 2021, Council adopted the “Lead by Example” plan, which includes the goal that, “the City eliminates fossil fuel use in vehicles and equipment fleet”
Fleet Vehicle Policy (Changes)Added Metrics for the City’s fleet which aim to:1.Achieve 100% all-electric light duty vehicles, excluding long range and certain public safety vehicles.2.Achieve 50% zero emissions medium and heavy-duty vehicles.3.Achieve 100% all-electric transit fleet.4.Achieve 100% all-electric equipment, excluding certain heavy-duty equipment, pumps, and backup generators.
Fleet Vehicle Policy (Changes Cont.)Delegates authority for the Fleet Maintenance Supervisor to recommend replacements at times of economic crisis.Recommendations by the Fleet Maintenance Supervisor must be approved by the City Manager.
Flow Chart for Decision making when determining the need for a fleet replacement and the appropriate replacement type:Replacement Types:• Electric Bicycles/Scooters• Electric Vehicles• Gas/Electric Plug-in Hybrid• Gas/Electric Hybrid• Gas Vehicle• Renewable Diesel
Fleet Electrification Strategic Plan Started in August 2022, and is grant funded through Central Coast Community Energy (3CE)Tasks Completed to date:Kick-Off MeetingData CollectionFleet BaselineFuture Tasks to be Completed:EV SuitabilityComprehensive Total Cost of OwnershipCharging Infrastructure Needs Assessment and RoadmapRegional Capacity Building and Knowledge Transfer
Fleet Electrification Plan Preliminary Findings 92% of the City’s 185on-road vehicles can be replaced with EV’s or PHEVs currently on the market, and based on preliminary analysis, all recommended options could satisfy the operating program’s operations.Adhering to the City’s existing replacement schedule of vehicles, the City could achieve 71% fleet electrification by 2030.Based on preliminary modeling results, replacing all vehicles with recommended EV of PHEV, the total cost of ownership will decrease by 28%and vehicle GHG emissions will decrease by 80%.
Recommendation:Adopt a Resolution Approving the Updated Fleet Replacement Policy