HomeMy WebLinkAbout07/21/1992, C-7 - FLEET MANAGEMENT PROGRAM REVIEW AND 1992-93 VEHICLE REPLACEMENTS "! MEETING DATE:
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COUNCIL AGENDA REPORT NUMBEFiC_
FROM: William C. Statler, Director of Finance
Prepared by: Carolyn Dominguez, Accounting Manager C
SUBJECT: FLEET MANAGEMENT PROGRAM REVIEW and 1992-93 VEHICLE
REPLACEMENTS
CAO RECOMMENDATION
■ Receive and file the report on the City's Fleet Management Program
■ Approve the vehicle replacement schedule for 1992-93
DISCUSSION
Background
The Council approved the Fleet Management Program in September 1990 which
establishes policies and procedures governing the management, operation, acquisition,
and disposition of vehicles owned and leased by the City. At the Council meeting of April
28, 1992, staff was directed to return with a review of the City's Fleet Management
Program, with special emphasis on our replacement guidelines, how they are
implemented, and how they compare with those of other agencies.
Overview of the Fleet Management Program
The objectives of the Fleet Management Program are to:
■ Provide safe, dependable, and clean vehicles for the transportation of authorized
City employees and for the delivery of essential services at the lowest possible
cost.
■ Achieve the maximum utilization of each vehicle in order to reduce the overall fleet
size to an effective minimum.
■ Inform users of City-owned vehicles of their responsibilities for the care and use
of City vehicles.
■ Establish budget and funding procedures for new and replacement vehicles.
■ Develop an inventory system for City vehicles.
■ Establish policies regarding the use of personal vehicles for the conduct of City
business.
■ Ensure that the appearance and use of City vehicles present a positive image of
the City.
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COUNCIL AGENDA REPORT
Incorporated as an integral part of the City's Financial Management Manual, the Fleet
Management Program covers the following areas:
Section 405-; Introduction
Identifies program objectives, overall policy guidelines, roles and responsibilities in
managing the City's fleet (including the Fleet Management Committee), fleet sizing
strategy and fleet organization
Section 405-B: Budget Policies and Procedures
Outlines the basic budget policies and procedures to be used in funding additions or
replacements to the City's fleet.
Section 405-C: Purchasing and Disposition
Describes the steps necessary to purchase or dispose of City vehicles, including general
policy guidelines, specific purchasing requirements, and surplus vehicle procedures.
Section 405-D: Insurance
Establishes policies for insuring City vehicles including self-insurance limits, roles and
responsibilities, accident reporting procedures, safety committee duties, and recovery of
damages to City vehicles.
Section 405-L Vehicle INILzadon
Provides utilization guidelines to assist in determining if City vehicles are being efficiently
used, including when assignments should be changed, when a vehicle should be
replaced, and when the fleet no longer requires a vehicle at all.
Section 405-F: Vehicle Operation and Maintenance
Establishes policies, procedures, and responsibilities to ensure City vehicles are
maintained and operated in a safe and responsible manner.
Section 405-6: Operator Responsibilities
Identifies the responsibilities of vehicle operators and fleet coordinators, including
assignment and use of vehicles, personal use of vehicles, maintenance, delivery of new
vehicles, appearance, service and repair,accident prevention,and emergency operations.
Section 405-H: Glossary
Describes terms and concepts discussed in the Fleet Management Program.
Section 4054. Fleet Coordinators
Identifies Fleet Coordinators (General, Transit, Fire, and Police).
Section 405-J Fleet listing
Provides inventory summaries and a detail listing of the City's vehicles by fleet and class
type.
As reflected in the above summary, the Fleet Management Program comprehensively
covers a broad range of policy areas that govern the management and operation of the
City's fleet.
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i COUNCIL AGENDA REPORT
vehicle Replacement Guidelines
The City's replacement guidelines are included in Section 405-E of the Fleet Management
Program. As requested by the Council, attachment 1 presents the results of a survey
conducted by the Fleet Management Committee which compares the replacement policies
of San Luis Obispo with 15 other agencies: 13 comparable cities, the County of San Luis
Obispo, and the State of California. The survey requested replacement guidelines for
seven categories of vehicles which are most commonly used by other agencies, and
account for 70% of the City's vehicle inventory. As reflected in the survey, most policies
include replacement in terms of years or miles, whichever comes first. A median range
was calculated and compared to City standards. The results indicate that the City has
established conservative replacement guidelines very similar to the median.
It is important to note that these guidelines are only intended to establish a general
framework for replacement and are used primarily for determining the amount of funding
that should be set aside annually to fund replacements. In accordance with adopted fleet
management policies, the decision to replace a vehicle should be based solely on an
evaluation of its cost of operation, maintenance status, and condition. In addition to
replacement guidelines, another important aspect of the City's Fleet Management
Program is the establishment of utilization guidelines; unless there are compelling safety
or operational reasons, vehicles that do not meet these guidelines will not be replaced at
all, and the fleet will be "right-sized" accordingly.
The following is an overview of the survey findings:
Police Patrol Vehicles
The City's replacement standard for patrol vehicles is identical to the median range of
survey cities. Public and officer safety are the prime factors for rotation of police patrol
vehicles after two years of service. If the vehicle is determined to still be in good operating
condition after this period, it is then rotated into the police fleet in a non-patrol capacity.
Passenger Sedans
It is the policy of the City (as well as the County) to purchase used rather than new sedan
vehicles. Adjusting for this difference, the City's replacement guidelines are comparable
to the other agencies surveyed.
Fire Engines
Fre engines are rated in terms of years as a "frontline" vehicle versus years in "reserve"
status. A total of 20 years of service is the standard for the City as well as the median
range calculated. However, the City maintains its fire engines as a frontline vehicle for 16
years as compared to a 15 year median frontline age.
Pickup Trucks
The City replacement standard of 10 years or' 85,000 miles is somewhat more
conservative than the median range of survey cities of 10 years or 82,700 miles.
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COUNCIL AGENDA REPORT
Street swwpers
Most cities do not have replacement guidelines in terms of miles for this class of vehicle.
The median replacement range is 8 years. The City has a replacement guideline of 9
years or 50,000 miles.
Backhoes
The City's policy of replacement in 15 years is identical to the median of cities surveyed.
Dumptrucks
The median replacement age for dumptrucks is 11 years, the City's standard is 15 years.
Most cities do not set a mileage guideline for dumptrucks.
In summary, the replacement guidelines established in the Fleet Management Program
are consistent with those established by other agencies. Based on this information, along
with the in-depth analysis initially performed when the Fleet Management Program was
originally developed and presented to the Council for approval, no changes to the
replacement guidelines outlined in the Fleet Management Program are recommended at
this time. However, in conjunction with our budget reduction review process scheduled
for Council consideration in September of 1992, the financial and operational impacts of
changes to these guidelines will be analyzed and presented to the Council.
Schedule of Vehicles for Replacement 1992-93
The Fleet Management Committee has reviewed the status of vehicles scheduled for
replacement during fiscal year 1992-93 based on established guidelines. As detailed in
attachments 2 through 4, 44 vehicles at an estimated cost of $1,420,000 would normally
be considered for replacement during 1992-93. Of this amount however, only $474,600
was originally budgeted in the 1991-93 Financial Plan for vehicle replacements based on
our criteria of evaluating operating costs, maintenance, and condition. In view of the
current economic conditions and the budget adjustments made at mid-year, the
Committee has identified which replacements could be deferred, and which replacements
should go forward. Those recommended to go forward are summarized as follows:
Fire Fleet
(1) Rescue Squad $28,100
(1) Training Officer Vehicle 15,900
General Fleet
(1) Electric Cushman Scooter (Parking) 16,000
(3) 1/2 Ton Pickups (Utilities-Water) 51,600
(2) 4x4 3/4 Ton Pickups (Whale Rock) 40,300
(1) 4x4 3/4 Ton Pickup (Parks) 21,600
(1) 1 Ton Truck (Utilities-Sewer) 36,800
(1) Loader (Streets) 25,000
Construction Equipment (Public Works) 11.500
Total $246,800
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COUNCIL AGENDA REPORT
FISCAL IMPACT
During the 1991-92 mid-year review, the amount allocated for equipment replacement
during 1991-93 was reduced by 25% in 1991-92 ($148,900) and by 50% in 1992-93
($287,300). Combined with the replacements already made or committed during 1991-
92, the recommended replacements for 1992-93 are within the revised allocations.
SUMMARY
The following is a summary of findings regarding the City's Fleet Management Program:
■ The City's replacement guidelines are consistent with those of comparable
agencies.
■ These guidelines are just that; replacements of individual vehicles are based on
an evaluation of its cost of operation, maintenance status, and condition.
■ If age or mileage guidelines were the sole basis for replacement, 44 vehicles at an
estimated cost of $1,420,000 would be replaced during 1992-93. In fact, only 11
vehicles at an estimated cost of $246,800 are recommended for replacement in
1992-93 compared with the original budget for 1992-93 of $474,600.
Based on these findings, no policy changes to the Fleet Management Program are
recommended at this time. It is further recommended that the Council approve the
vehicle replacement schedule for 1992-93, which replaces 11 vehicles at an estimated
cost of $246,800. Consistent with mid-year revisions, this reflects a reduction from the
original budget amounts of $227,800.
Attachments
1. Survey of Vehicle Replacement Guidelines
2. Police Fleet - Replacement recommendations
3. Fre Fleet - Replacement recommendations
4. City Fleet - Replacement recommendations
Fleet Management Program is on file in the Council Office (Section 405 of the Finance
Management Manual)
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]N POLICE DEPARTMENT
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Office Box 1328 — San Luis Obispo, CA 93406-1328 — 8051549.7310
June 9, 1992 Atachment
MEMORANDUM
To: Fleet Management Committee
From R. Thomas Stewart, Support Services Manager
Subject: Police Fleet Vehicle Replacements FY 1992-93
The Police Department has one vehicle that is tentatively scheduled
for replacement during the upcoming Fiscal Year. That vehicle is
City Unit 8917, a 1988 Oldsmobile Cutlass Supreme.
It is my recommendation that this vehicle not be replaced during
this period of time. The reason is that the vehicle has only about
27,000 miles on it at the present time, is not a maintenance
problem and provides the necessary utility for this department.
During this nest fiscal year certain pieces of emergency equipment
are being introduced to this vehicle to accent the potential that
it has for the Police Department.
cc: Chief Gardiner
Capts Chelquist and Topham
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SAN LUIS OBISPO FIRE DEPARTMENT VEHICLES REQUESTED
TO BE REPLACED 92-93 BUDGET
1. 1986 Ford F-350 Crew Cab/Chassis - Rescue Squad
City ID #8604 Attachment
Class 3-B
Projected Life - 5 yrs.
In Use - 6 yrs. to-date
Replace with Same or Similar
Estimated Replacement Cost $219000.00
1.312.50 + Tax
22,312.50
Radio & Installation 5.800.00
$28,112.50 Estimated Cost
2. 1984 Ford LTD Sta. Wagon - Training Officer Vehicle
City ID #8506
Class 1-B
Projected Life - 5 yrs.
In Use - 8 yrs. to-date
Replace with Aerostar van or similar
Estimated Replacement Cost $14,000.00 + Tax
875.00
14,875.00
Radio & Installation 1.000.00
$15,875.00 Estimated Cost
3. 1986 Buick Century - Inspector's Sedan
City ID #8702
Class 1-B
Projected Life - 5 yrs.
In Use - 6 yrs. to-date
Replace with a rental car,
preferably a Chevrolet Lumina
Estimated Replacement Cost $15,400.00
962.5 0 + Tax
16,362.50 Estimated Cost
ESTIMATED TOTAL COST $60,350.00
NOTE: It was suggested at the last Fleet Management meeting that Item #3, the '86 Buick
could be replaced by a Lumina sedan from the City Hall fleet due to decrease in
staffing. If this approach is taken, it will eliminate one vehicle from the City Hall
fleet and decrease the total estimate of replacement to. approximately $43,987.50.
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ADDITIONAL SAN LUIS OBISPO FIRE DEPARTMENT VEHICLES CURRENTLY DUE
FOR REPLACEMENT PER FLEET MANUAL GUIDELINES 92/93 BUDGET
1. 1984 Chevrolet K-20-3/4T 4x4 - Utility Truck
City ID #8406 Attachment 3�
Class 3-E
Projected Life - 7 yrs.
In Use - 8 Yrs. to-date
Estimated Replacement Cost $20$ 00.00
1,881.20 + Tax
Radio & Installation 5.800.00
$27,181.20 Estimated Cost
2. 1986 Oldsmobile Delta 88 - Chief's Sedan
City ID #8701
Class 1-B
Projected Life - 5 yrs.
In Use - 6 yrs. to-date
Estimated Replacement Cost
w/Rental Car $15,400.00
962.50 + Tax
16,362.50
Radio & Installation 5.800.00
$227162.50 Estimated Cost
ESTIMATED TOTAL COST $49,343.70
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June 24, 1992 Attachments
MEMORANDUM
TO: Fleet Management Committee --77
FROM: Dennis E. Cox, Streets Manager!cl
SUBJECT: Vehicle Replacement
There are several vehicles and pieces of equipment that are, or
will be eligible for replacement during 1992-93 . Not all of
these units will be recommended for replacement. List attached.
The units that are recommended for replacement are the class
three, four, and five pickup trucks. The total cost to replace
these recommended vehicles is $150, 300.
The class two, Cushman scooter is recommended to be replaced with
an eletric scooter costing approximately $16,000.
Instead of replacing the D-6 bulldozer at $150, 000, staff
recommends that a skid-steer loader and trailer be purchased at a
cost of $25, 000.
The miscellaneous pieces of equipment such as portable line
striper, gas power jack hammer and cement mixer will still need
to replaced at a cost of $11,500.
The remaining vehicles eligible for replacement would be deferred
until they become to costly to maintain..
The total cost for the RECOMMENDED REPLACEMENT is $202,800.
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Atttachmen
GENERAL FLEET
VEHICLE REPLACEMENT RECOMMENDATION LIST 1992-93
Department
Unit Cost Total Cost Receiving
Class 2 (Cushman scooter)
1 ea (electric) 16,000 16,000 Parking
Class 3 (1/2 ton Pickups)
3 ea. w/service body 17,200 51,600 Utilities
Class 4(3/4 ton Pickups)
1 ea 4x4 w/tool box 18,700 18,700 Whale Rock
2 ea 4x4 w/utility body 21,600 43,200 Whale Rock& Parks
Class 5 (1 ton Trucks) 36,800 36,800 Wastewater
Class 6
1 Skid-steer loader
(in place of dozer) 25,000 25,000 Streets
Miscellaneous Equipment 11,500 11.500
$202,800
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Attachment �G
VEHICLE REPLACEMENT ELIGIBILITY LIST FOR 1992-93
Class 1 (Sedans)
13 ea. $14,200 ea. $184,600
Class 2 (Cushman)
1 ea. (eletric) $16,000 ea. $ 16,000
Class 3 (1/2 ton Pickups)
3 ea. w/service body $17,200 ea. $ 51,600
Class 4 (3/4 ton Pickups)
1 ea. 4x4 w/toot box $18,700 ea. $ 18,700
2 ea. 4x4 w/tool box $21,600 ea. $ 43,200
$ 61,900
Class 5 (1 ton Trucks)
1 ea. w/service body $22,700 $ 22,700
1 ea. flatbed w/crane $36,800 $ 36,800
$ 59,500
Class 6 (Heavy-Equipment)
1 ea. sweeper (8605) $135,000 $135,000
1 ea. backhoe (7707) $ 65,000 $ 65,000
1 ea. oil distributor (6606) $ 90,000 $ 90,000
1 ea. sewer flusher (7510) 485,000 $ 85,000
1 ea. single drum roller (8113) $ 10,000 $ 10,000
$385,000
Class 7 (Trailers)
1 ea. tiltbed (6610) $16,000 $16,000
1 ea. box (6009) $ 5,500 $ 5,500
1 ea. box (6809) $ 4,000 $ 4,000
1 ea. trailer (7411) $ 6,000 $ 6,000
$31,500
Class 8 (Heavy-Equipment)
1 ea. D-6 bulldozer [D5H] (6310) $150,000 $150,000
1 ea. grader [12G] (7102) $168,000 $168,000
1 ea. 3/4 yd. f/e loader (7409) $ 32,000 $ 32,000
1 ea. 926E w/4in1 all wheel loader (7404) $120,000 $120,000
2 ea. mower (7606&6906) $ 5,000 $ 10,000
Plus misc. cement mixer, gas power jack hammer and
portable line striper. $ 11,500
TOTAL $1,282,800
vehicles/gb/rep192-3.wp