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HomeMy WebLinkAbout07/21/1992, C-7 - FLEET MANAGEMENT PROGRAM REVIEW AND 1992-93 VEHICLE REPLACEMENTS "! MEETING DATE: �iu� lul 1�1 cIOf san qui s OBISPO7-Al- U. rrEM 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. a:\fletmgmteao C•7_ ' iiu �1l city Of san Lu1s OBISPO 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. C-7-a. ilina►�►►►�iIIIIIIIIPp°1°►q��IN city O� San _AIS OBISPO 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. C-7-3 il�h��►r►iu�►IIIIII�I�� IIU�U city of San iuIs OBISp0 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 C-7-� il��►��►�►�►Iuh111111lP° IIUIII MY Of San _ -41S OBISPO 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) O e0 A e0 • R R e7 eC e7 O c0 O R lC. i! 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O C C Oa U U L �„ m _:,s a 4 Cl. 2 c ed y is c R U = e°':: o: m o a = = o O ao UU R q R q CO • , V Gn :U z .°. `r � Y ��IIIIIII 111111 �iiii�),!,j �l'�!iliili I,, III�� city of san tuts oas o ]N POLICE DEPARTMENT a 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 cc\WPd0C\92-93veh.rp1 V r�— 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. �E Re-4e tia to o� Y �o� c y OS P v Vc has 1--f'n� CQ�S �i-1--e ✓ i-�w vi Yl e u� O h e�S/, C-�-8 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 C-7-q �►i�i it� I ifl!I I II II � �lil ii I! ,► city ® S S OBISPO !ml�___�;r,=.����1�-�_�_;L 25 Prado Road • San Luis Obispo. CA 93401 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. C-7-10 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 C- 7-11 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