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HomeMy WebLinkAbout04/04/2000, 8 - FLEET MANAGEMENT POLICY REVISIONS council 77+ j acEnaa uEpoRt 8 CITY OF SAN LUIS O BISPO FROM: Michael D.McCluskey,Public Works Directorftv-%. Prepared By: David Elliott,Administrative Analystt\ SUBJECT: Fleet Management Policy Revisions v CAO RECOMMENDATION • Adopt a resolution amending the Finance Management Manual Section 405 regarding fleet management • Allow the scheduled replacement of general purpose vehicles to proceed DISCUSSION When the Council reviewed the current Capital Improvement Plan during budget hearings in spring 1999,it directed staff to defer replacing any general purpose vehicles (sedans, station wagons,minivans,sport utility vehicles,and light pickup trucks)until existing fleet management policies had been reviewed and updated. An ad hoc committee of representatives from affected departments convened with the goal of simplifying and updating the existing fleet management policies. To guide this work the committee came up with five fleet management objectives: 1. Minimize fleet operation and maintenance costs. 2. Avoid unnecessary capital outlays for fleet expansion and replacement. 3. Improve fleet safety, utility,reliability, and economy. 4. Maintain a positive image for the City. 5. Encourage responsible use of City vehicles and equipment. The rationale for these objectives is elaborated in Section 405-A of the proposed policy. The proposed policy includes three significant policy changes: • Adjustment of age and mileage targets • Elimination of utilization guidelines • Authorization for staff to declare vehicles and equipment surplus • Addition of policies on alternative-fuel vehicles and equipment 8-1 Council Agenda Report–Fleet Management Policy Revisions Page 2 Adjustment of Age and Mileage Targets Section 405-F of the proposed policy shows the age and mileage expected from City vehicles and before replacement. The following table summarizes changes in age and mileage targets in the proposed policy. Edstin Targe.. Pro osed Targets Age in Age in Vehicle or Equipment Category Years Mileage Years Mileage Police Patrol Sedans 3 70,000 3 100,000 Police Patrol Motorcycles 3 60,000 3 25,000 Fire Pumper Trucks 16 -- 16 --- Fire Aerial Ladder Trucks 201 20 — Other Fire Trucks 10 -- 10 --- General Purpose Sedans (Police) 6 54,000 7 80,000 General Purpose Sedans 8 60,000 10 80,000 General Purpose Station Wagons 8 60,000 10 80,000 General Purpose Passenger Vans 8 60,000 10 80,000 General Purpose Sport Utility Vehicles none none 11 90,000 General Purpose Pickup Trucks (under 1 ton) 12 102,000 11 90,000 Special Purpose Light Trucks (under 1 ton) 12 102,0001 12 100,000 Special Purpose Medium Trucks (1 to 2 ton) 12 102,0001 12 60,000 Special Purpose Heavy Trucks (over 2 ton) 17 102,000 12 60,000 Utility Scooters 6 30,000 6 30,000 Street Sweepers 7 58,000 5 60,000 Vacuum Flusher Trucks none none 8 60,000 Trailers 18 — 18 — Construction Equipment 17 17 -- Buses 15 — 15 Mowers 15 - 15 Boats 21 — 21 — Other Portable Equipment 15 15 — Alternative Fuel Vehicles and Equipment none none none none The decision to replace vehicles is primarily based on objective criteria such as age, mileage, and repair history,but it ultimately depends on the judgment of the fleet coordinators. This approach has generally worked as intended,but the age and mileage targets need to be adjusted for some categories. The fleet coordinators have not blindly recommended replacement based only on age and mileage targets. Instead,they have considered total maintenance costs,the trend of maintenance costs,chronic mechanical 8-2 Council Agenda Report—Fleet Management Policy Revisions Page 3 problems,current overall condition, expected future repairs, and estimated market value. From these considerations they have formed professional opinions about whether vehicles should be replaced or remain in service. This procedure has resulted in a substantial increase in expected service life for sedans, station wagons, and minivans. At the same time it has resulted in a slight reduction toward a more realistic expected service life for lightweight pickup trucks and sport utility vehicles. Continuing this procedure will allow appropriate replacements based on maintenance history, condition and value. A few vehicles will tum out to be lemons and have to be replaced earlier than expected, and a few others will serve beyond their expected service life,but average service life should be fairly close to the recommended targets. Target mileages for general purpose vehicles may appear to be low compared to personal experience. Typically these vehicles are driven on short,low speed trips in stop-and-go traffic—highly stressful conditions for most vehicle components. Also,with low speed trips City vehicles quickly accumulate operating hours disproportionate to the mileage indicated. For example,a City car driven at an average speed of 25 miles per hour with 80,000 miles on the odometer has about the same operating hours as a more typical car driven at an average speed of 50 miles per hour with 160,000 miles. As a result, drive train components in the City's general purpose vehicles can be in a deteriorated condition with relatively few miles showing. Continuing to operate these vehicles can result in expensive repairs to engines,transmissions, and differentials. Over a three or four year period,these repair costs can equal the net cost of replacement vehicles after accounting for resale proceeds. The committee surveyed 18 California cities and service districts to determine typical age and mileage targets for general purpose vehicles. The average target was 8 years and 98,000 miles. This compares favorably to the proposed targets of 10 years and 80,000 miles for sedans, station wagons, and minivans, and 11 years and 90,000 miles for light pickup trucks and sport utility vehicles. The committee speculated that the average age target was lower and the average mileage was higher in the surveyed agencies because of somewhat higher average speeds in those areas,perhaps because of more freeway driving. Elimination of Utilization Guidelines The existing policy specifies approximate annual miles or hours of operation expected from various classes of vehicles. The purpose of this provision was to provide a benchmark for annually determining if a vehicle or equipment item were being used efficiently and if it made sense to keep it in the fleet. For instance,these utilization guidelines said that a light pickup truck should be driven about 5,000 miles per year. They also suggested that if a particular truck were being driven much less than 5,000 8-3 Council Agenda Report—Fleet Management Policy Revisions Page 4 miles per year, then perhaps it might not be needed and should be eliminated from the fleet. In the interest of simplifying a process that had not been consistently implemented,the committee agreed that an analysis of average annual use should occur not every year, but rather when a vehicle or equipment item approaches its target age and might be ready for replacement. Such a provision is included in Section 405-C of the proposed policy. Authorization for Staff to Declare Vehicles and Equipment Surplus Section 906 of the City Charter requires Council approval for sale of any City personal property with a value greater than one hundred dollars. To efficiently implement this provision, Section 405-0 authorizes the Finance Director to declare replaced vehicles and equipment as surplus whenever the Council has previously approved replacement through the budget process or other Council action. It also authorizes the Finance Director to dispose of surplus vehicles and equipment by sale, auction,trade-in, or other disposal method according to City policies and procedures. Addition of Policies on Altemative-Fuel Vehicles and Equipment The City has a good history of experimenting with altemative-fuel vehicles to reduce air pollution. As far back as 1979,the City used compressed natural gas(CNG)technology in its transit fleet And currently the City operates ten CNG pickup trucks and two CNG buses. The City's experience has shown that these vehicles can be less reliable,less durable, and less easily serviced than comparable conventional-fuel vehicles. For these reasons, the committee decided that policies for acquiring altemative-fuel vehicles and equipment should be included in the proposed policy. Section 405-E of the proposed policy calls for the City to incorporate altemative-fuel vehicles and equipment into its fleets when such vehicles and equipment: • will produce less air pollution and use less fossil fuel than comparable conventional-fuel vehicles and equipment. • will not compromise fleet safety,utility, and reliability. • can be fueled or recharged locally. • can be serviced economically and locally. • have an acquisition cost not more than 20 percent above the cost of comparable conventional-fuel vehicles and equipment. • have a maintenance cost not more than 20 percent above the cost of comparable conventional-fuel vehicles and equipment. 8-4 Council Agenda Report–Fleet Management Policy Revisions - Page 5 Other Changes Less significant changes in the proposed policy include: • Establishment of a policy stating that the preferred procedure for buying general purpose vehicles will be to buy late model,low mileage, used vehicles. (Sections 405-D and 405-K) • Formalization of procedures for buying vehicles and equipment under various circumstances. (Sections 405-I,405-J,405-K, and 405-L) • Clarification of policies on marking newly acquired vehicles. (Section 405-G) • Elimination of material that simply restated material found elsewhere, such as policies and procedures about purchasing,budget, and travel. FISCAL IIVIPACT As mentioned,the Council requested a review of fleet management policies before proceeding with any acquisition of general purpose vehicles. Following Council review of the proposed policy,staff is recommending that the scheduled replacement of general purpose vehicles proceed as approved in the budget. Below is a summary of these replacements: 1999-00 2000-01 2001-02 2002-03 # Bud et # Bud et # Budget # Budget Sedans 6 $60,000 2 $0 6 $140,000 3 $60,000 Minivans — — — — 2 50,000 — Pickups 4 95,000 2 50,000 5 122,000 9 205,000 SLTVs 1 30,000 — — 1 30,000 — — Totals 11 $185,000 1 41 s55,555 14 $342000 1 12 $265 000 Note: Three sedans in 1999-00 and two sedans in 2000-01 will be replaced with vehicles from the existing fleet. ATTACHMENT Resolution (with amended Section 405 of the Financial Management Manual) Fleet Management Policy Revisions 8-5 RESOLUTION NO. (2000 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING SECTION 405 OF THE FINANCE MANAGEMENT MANUAL REGARDING FLEET MANAGEMENT WHEREAS,the City's fleet represents a significant investment in the tools needed to deliver day-today services; and WHEREAS,the Council wants to minimize fleet operation and maintenance costs; and WHEREAS,the Council wants to avoid unnecessary capital outlays for fleet expansion and replacement; and WHEREAS,the Council wants to improve fleet safety, utility,reliability, and economy; and WHEREAS,the Council wants to maintain a positive image for the City; and WHEREAS,the Council wants to encourage responsible use of City vehicles and equipment; BE IT RESOLVED by the Council of the City of San Luis Obispo to adopt the amended Section 405 of the Financial Management Manual attached and to rescind Resolution No. 6876 (1990 Series). Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of , 2000. Mayor Allen Settle 8-6 Resolution No. (2000"Series) Page 2 I ATTEST: Lee Price,City Clerk APPROVED AS TO FORM: - J gens. ity -homey — -_- 8-7 Section 405 FLEET MANAGEMENT Contents: A. Purpose and Objectives 2 B. Responsibilities 3 C. Policies on Maintaining Proper Fleet Size 5 D. Policies on Buying New vs. Used Vehicles and Equipment 6 E. Policies on Alternative Fuel Vehicles and Equipment 7 F. Policies on Age and Mileage Targets before Replacement 8 G. Policies on Equipping and Marking Newly Acquired Vehicles and 10 Equipment H. Procedure to Budget for Vehicles or Equipment Items 11 L Procedure to Buy a New Vehicle or Equipment Item through a 12 Cooperative Purchasing Contract J. Procedure to Buy a New Vehicle or Equipment Item through an 13 Invitation for Bids K Procedure to Buy a Used General Purpose Vehicle 14 L. Procedure to Buy a Used Vehicle or Equipment Item other than a 15 General Purpose Vehicle M. Procedure to Identify Vehicles or Equipment Items to be Disposed of 16 1 g_g Section 405-A PURPOSE AND OBJECTIVES 1. Purpose: The City's fleet represents a significant investment in the tools needed to deliver day-to-day services. This section of the Finance Management Manual outlines responsibilities,policies, and procedures for managing the City's fleet according to established objectives. 2. Objectives: a. Minimize fleet operation and maintenance costs. Typically operation and maintenance costs increase as vehicles and equipment get older and accumulate more miles. b. Avoid unnecessary capital outlays for fleet expansion and replacement. Expanding the fleet or replacing an existing vehicle or equipment item may not make sense if the vehicle or equipment item is used only sparingly. Also,in many cases, used vehicles and equipment will provide needed utility,reliability,and economy at an acquisition cost significantly lower than the cost of new vehicles and equipment. C. Improve fleet safety, utility, reliability, and economy. Newer vehicles usually incorporate more advanced technology such as airbags, anti-lock braking systems, and engines that bum cleaner, last longer, and use less fuel. New equipment usually incorporates technology that improves the productivity and safety of the equipment operators. Also, newer vehicles and equipment are naturally more reliable. d. Maintain a positive imase for the City. Operating older vehicles and equipment can sometimes indicate cost-consciousness,but if the vehicles and equipment are unsightly or noisy it can reflect lack of care and concern. Also, stylish features with marginal utility may project an inappropriate image of luxury or extravagance. e. Encourage responsible use of City vehicles and equipment. Conscientious use of City vehicles and equipment can improve safety and reduce liability. 2 S-9 Section 405-B RESPONSIBILITIES 1. City Administrative Officer Responsibilities: a. Oversee the acquisition, operation, and disposal of all City owned and leased vehicles and equipment. b. Amend fleet management policies and procedures as required to accomplish adopted fleet management objectives. 2. Department Head Responsibilities: a. Ensure fleet management policies and procedures are followed. b. Budget for replacement and addition of vehicles and equipment. 3. Fire Fleet Coordinator Responsibilities: a. Manage the acquisition and disposal of all vehicles and equipment assigned to the fire fleet. The fire fleet includes all vehicles specially designed and equipped for fire,medical, and other emergency response. Because these vehicles require unique service and repair capability,the fire fleet is kept separate from other City vehicles and equipment. b. Service and repair all vehicles and equipment assigned to the fire fleet. C. Manage inventories of the fuel, oil,tires, and replacement parts needed for all vehicles and equipment assigned to the fire fleet. d. Document the maintenance history and cost,the fuel use, and the accumulated mileage (or hours)for each vehicle or equipment item assigned to the fire fleet. e. Identify vehicles and equipment items to be disposed of. 4. Transit Fleet Coordinator Responsibilities: a. Manage the acquisition and disposal of all vehicles and equipment assigned to the transit fleet. The transit fleet includes buses and service vehicles used by the City's transit service contractor. Because such contractors prefer to service and repair the vehicles they operate,the transit fleet is kept separate from other City vehicles and equipment b. Oversee the maintenance and operation of the transit fleet that are performed by the transit service contractor. C. Identify vehicles and equipment items to be disposed of. 5. General Fleet Coordinator Responsibilities: a. Manage the acquisition and disposal of all vehicles and equipment not assigned to the fire or transit fleet. 3 8-10 Responsibilities (continued) b. Service and repair all vehicles and equipment not assigned to the fire or transit fleet. c. , Manage inventories of the fuel, oil, tires, and replacement parts needed for all vehicles and equipment not assigned to the fire and transit fleet. d. Document the maintenance history and cost, the fuel use, and the accumulated mileage(or hours) for each vehicle or equipment item not assigned to the fire or transit fleet. e. Identify vehicles and equipment items to be disposed of. 6. Vehicle and Equipment Operator Responsibilities: a. Exercise good judgment. b. Consult a supervisor or the fleet coordinator if any operator responsibilities are not clear. C. Use City vehicles and equipment only for conducting City business unless a vehicle has been approved as a part of compensation or has been specifically approved by the City Administrative Officer. d. Arrange for emergency repairs whenever consulting with the fleet coordinator would be impractical. Pay for emergency repairs by either using a City credit card or paying for the repair and submitting receipts for reimbursement. e. Wash and vacuum the vehicle or equipment periodically to maintain its appearance and prevent premature deterioration of surfaces and materials. Use City-owned washing facilities if available. If City-owned washing facilities are not available, use a commercial car wash. Use commercial waxing and detailing services only with prior approval of the fleet coordinator. L Pay for any parking fees and tolls required while on City business. Submit receipts for reimbursement. g. Pay any traffic and parking fines incurred. These payments are not reimbursable. h. Carry a valid California driver license. i. Obey all traffic laws. j. Drive defensively. k. Use turn signals. 1. Use seat belts and ensure all occupants the use seat belts. in. In case of accident, follow instructions included in the accident folder. 4 8-11 Section 405-C POLICIES ON MAINTAINING PROPER FLEET SIZE 1. The vehicle and equipment fleet should not exceed the minimum number of vehicles and equipment items needed to effectively conduct City business. 2. When budgeting for replacement of vehicles and equipment items, average annual mileage or hours should be calculated for each vehicle or equipment item to be replaced. If average annual use appears to be much lower than the average annual use within the same vehicle or equipment category,the following options should be considered instead of replacement: • Using a vehicle assigned to a convenient vehicle pool • Occasionally borrowing equipment from another program • Renting a vehicle or equipment item for a limited period of time with City Administrative Officer approval • Reimbursing an employee for occasional use of a privately-owned personal vehicle with department head approval 3. Occasional use of a privately-owned personal vehicle for City business should be the last option considered, because it conflicts with City policies encouraging City employees to use alternative transportation for commuting. 4. When use of a privately-owned personal vehicle is authorized for City business, reimbursement will be made at the current Internal Revenue Service rate allowed for business use of vehicles. 5. Replacement of vehicles and equipment will not be used as a strategy to expand the fleet. When a vehicle or equipment item is replaced,it will expeditiously be declared surplus and be disposed of,unless a)it is assigned to backup service according to adopted allowances for such assignment orb) the City Administrative Officer approves temporary retention and use not to exceed 180 days. 6. Section 906 of the City Charter requires Council approval for sale of City personal property with a value greater than one hundred dollars. To efficiently implement this provision,the Finance Director will be authorized to a)declare replaced vehicles and equipment as surplus whenever the Council has previously approved replacement through the budget process or other Council action and b)dispose of surplus vehicles and equipment by sale, auction,trade-in, or other disposal method according to City policies and procedures. 5 Q-12 Section 405-D POLICIES ON BUYING NEW VS. USED VEHICLES AND EQUIPMENT 1. When buying general purpose vehicles (sedans, station wagons,minivans, sport utility vehicles, and pickup trucks with less than one ton payload),the preferred procedure will be to buy used vehicles. 2. If a new,rather than used, general purpose vehicle is needed,justification should be included in the Capital Improvement Plan project request. 3. When buying public safety vehicles and special purpose vehicles and equipment, the preferred procedure will be to buy new vehicles and equipment. 4. When buying a public safety vehicle, special purpose vehicle, or special purpose equipment item,the operating department may determine that a used vehicle or equipment item is more cost-effective than a similar new vehicle or equipment item. The rationale for such a determination should be included in the Capital Improvement Plan project request. 6 8-13 Section 405-E = POLICIES ON ALTERNATIVE-FUEL VEHICLES AND EQUIPMENT 1. The City will incorporate alternative-fuel vehicles and equipment into its fleets when such vehicles and equipment: • will produce less air pollution and use less fossil fuel than comparable conventional-fuel vehicles and equipment. • will not compromise fleet safety, utility, and reliability. • can be fueled or recharged locally. • can be serviced economically and locally. • have an acquisition cost not more than 20 percent above the cost of comparable conventional-fuel vehicles and equipment. • have a maintenance cost not more than 20 percent above the cost of comparable conventional-fuel vehicles and equipment. 2. Age and mileage targets before replacement will not apply to alternative-fuel vehicles and equipment. 7 5-14 Section 405-F POLICIES ON AGE AND MILEAGE TARGETS BEFORE REPLACEMENT 1. The following table shows the age and mileage expected from City vehicles and equipment in front-line operation before replacement or assignment to backup service: Years Allowed Age in in Backup Vehicle or Equipment Category Years Mileage Service Public Safety Vehicles: Police Patrol Sedans 3 100,000 — Police Patrol Motorcycles 3 25,000 Fire Pumper Trucks 16 — 4 Fire Aerial Ladder Trucks 20 4 Other Fire Trucks 10 --- — General Purpose Vehicles: General Purpose Sedans (Police) 7 80,000 — General Purpose Sedans 10 80,000 General Purpose Station Wagons 10 80,000 — General Purpose Passenger Vans 10 80,000 — General Purpose Sport Utility Vehicles 11 90,000 — General Purpose Pickup Trucks (under 1 ton) 11 90,000 — Special Purpose Vehicles and Equipment. Special Purpose Light Trucks (under 1 ton) 12 100,000 — Special Purpose Medium Trucks (1 to 2 ton) 12 60,000 — Special Purpose Heavy Trucks (over 2 ton) . 12 60,000 — Utility Scooters 6 30,000 — Street Sweepers 5 60,000 5 Vacuum Flusher Trucks 8 60,000 — Trailers 18 — Construction Equipment 17 — Buses 15 --- Mowers 15 - Boats 21 --- Other Portable Equipment 15 — Altemative-Fuel Vehicles and Equipment No Tar is 2. For vehicles and equipment bought used,the age and mileage targets apply to age and mileage since new,rather than age and mileage since acquired by the City. 8 8-15 Policies on Age and Mileage Targets before Replacement (continued) 3. Age and mileage standards will be periodically reviewed and may be adjusted because of improvements in technology or maintenance practices. 4. In order to maintain the high degree of reliability required for emergency response, public safety vehicles will generally be replaced or assigned to backup service when solely based on age and mileage targets. 5. For non-public safety vehicles and equipment, the age and mileage targets are only guidelines. Vehicles and equipment in exceptional condition with low-cost repair histories may continue in service beyond expected age and mileage targets at the discretion of the fleet coordinator. On the other hand,vehicles and equipment may be recommended for replacement before expected age and mileage targets are reached if there are problems with high maintenance cost,unreliability,unsafe components,or technological obsolescence. 9 8-16 Section 405-G POLICIES ON EQUIPPING AND MARKING NEWLY ACQUIRED VEHICLES AND EQUIPMENT 1. Unless it is impractical or unsafe,the fleet coordinator will equip each vehicle or equipment item with the following articles: • First aid kit • Fire extinguisher • Flares • Flashlight • Blanket • Litter bag • Vehicle registration forms • Proof of insurance • Accident folder that includes an incident report form, an information exchange card, and witness information cards 2. General purpose sedans do not require any special markings. However, vehicles must be identified as belonging to the City of San Luis Obispo through such means as a license plate holder or window decal. 3. Sport utility vehicles, pickup trucks, and equipment items will be marked with the current standard City logo and logo colors on each side and the City identification number on the tailgate or other conspicuous area 4. Police patrol sedans and patrol motorcycles will be marked so that they will be immediately.recognizable as City public safety vehicles. Patrol sedan vehicles will be base white in color with markings that will include the standard City logo in black and gold on the left and right front doors with accompanying black stripe along each side of the vehicle 5. Emergency response vehicles in the fire fleet will be lime green and marked with a City logo, City of San Luis Obispo Fire Department and white stripe on the side. Other staff vehicles will be white with a green stripe and identified as City of San Luis Obispo Fire Department. General purpose sedans will be marked as shown in #2 above. 6. Transit fleet vehicles will be marked in a distinctive striping scheme that includes the term"SLO Transit". Any changes to transit fleet markings will be recommended by the Mass Transportation Committee and approved by the City Council. 7. Deviations from the provisions of paragraphs 2 through 5 and additional special markings on any vehicles and equipment must be approved by the City Administrative Officer. 10 8-17 Section 405-H PROCEDURE TO BUDGET FOR VEHICLES OR EQUIPMENT ITEMS 1. To Budget for Addition of Vehicles and Equipment to the Fleet: Prepare a Capital Improvement Plan project request(or a significant operating program change request if the unit cost is less than $15,000) for each vehicle or equipment item to be added. Group similar vehicles or equipment items within one operating program into a single request. The City's budget policies apply to all such requests. 2. To Budget for Replacement of EAsting Vehicles and Equipment: a. Examine vehicles and equipment items that are near or beyond age and mileage targets. Recommend replacement if justified by maintenance history, overall condition, value,and obsolescence. b. Prepare a Capital Improvement Plan project request(or a significant operating program change request if the unit cost is less than$15,000) for each vehicle or equipment item to be replaced. Group similar vehicles or equipment items within one operating program into a single request. Include the following minimum information for each vehicle and equipment item to be replaced: • City identification number(e.g., 8901) • Model year(e.g., 1989),make (e.g.,Ford), and model(e.g.,F-350) • Description(e.g., one-ton truck) • Assigned department(e.g.,Public Works) • Assigned program(e.g., Signal and Light Maintenance) • Acquisition year(e.g., 1989-90) • Acquisition price • Recommended replacement year(e.g.,2000-01) • Estimated total replacement price(including the price of additional equipment such as radios and installation for new or transferred equipment) • Itemization of total replacement price (including base price,price of special equipment,price of special equipment installation, and five percent price contingency) • Estimated surplus value • Basis of estimated surplus value (e.g.,blue book,previous auction proceeds) • Current odometer or hourmeter reading • Projected odometer or hourmeter reading at replacement • Maintenance cost since acquisition • Maintenance cost in the last full fiscal year • Justification for replacement before age or mileage targets • Justification for replacement with other than a like vehicle or equipment item 11 8-18 Section 4054 PROCEDURE TO BUY A NEW VEHICLE OR EQUIPMENT ITEM THROUGH A COOPERATIVE PURCHASING CONTRACT 1. Obtain a copy of the purchasing contract that extends contract prices to other government agencies. 2. Ensure that the specified vehicle or equipment item along with options is appropriate for the intended use. 3. Solicit a few informal oral quotations from other dealers to ensure that the contract price is competitive. 4. Include only those options needed to meet work requirements and typical comfort needs. Avoid options like fancy wheels or leather upholstery that might be perceived as luxurious or extravagant,even if there is no difference in price compared to ordinary options. 5. Specify the exterior paint color to be white. Specify another color(preferably solid and non-metallic) if it will demonstrably improve safety,enhance utility, or reduce cost. 6. Prepare a purchase order to the contract dealer. Depending on the cost, submit a Council Agenda Report or CAO Report requesting approval of the purchase order. 7. Receive the vehicle or equipment item and examine it for defects and conformance to specifications. If satisfactory, mark the dealer's invoice "okay to pay", initial it, and forward it to Finance Department with a copy of the purchase order. 8. Forward any title documents to Finance Department. 12 8-19 Section 4051 PROCEDURE TO BUY A NEW VEHICLE OR EQUIPMENT ITEM THROUGH AN INVITATION FOR BIDS 1. Use the standard invitation to bid(IFF'B)template to create the specification. 2. In Section A(Description of Work), list the dimensions,capacities,ratings, and options that will adequately describe the vehicle or equipment item needed for the intended use. Avoid describing a vehicle or equipment item available from only one manufacturer. 3. Include only those options needed to meet work requirements and typical comfort needs. Avoid options like fancy wheels or leather upholstery that might be perceived as luxurious or extravagant,even if there is no difference in price compared to ordinary options. 4. Specify the exterior paint color to be white. Specify another color(preferably solid and non-metallic) if it will demonstrably improve safety, enhance utility, or reduce cost. 5. If the vehicle or equipment item will be picked up at the dealer or delivered by common carrier,eliminate insurance requirements from Section B (General Terms and Conditions) and eliminate Section E(Insurance Requirements) from the specification. 6. Eliminate the contract requirement from Section B (General Terms and Conditions). Eliminate Section D (Form of Agreement) from the specification. 7. In Section C (Special Terms and Conditions), change language about awarding a contract to language about issuing a purchase order. 8. Depending on estimated cost, submit a CAO Report or Council Agenda Report requesting authorization to invite bids. If a Council Agenda Report is submitted, request that the City Administrative Officer be authorized to award a purchase order if the cost is within budget 9. Advertise for bids. 10. Open bids. 11. Prepare a purchase order to the successful bidder. Submit a CAO Report requesting approval of the purchase order. 12. Forward the purchase order to Finance Department. 13. Receive the vehicle or equipment item and examine it for defects and conformance to specifications. If satisfactory,mark the dealer's invoice"okay to pay",initial it, and forward it to Finance Department with a copy of the purchase order. 14. Forward any title documents to Finance Department. 13 8-20 Section 405-K PROCEDURE TO BUY A USED GENERAL PURPOSE VEHICLE (General purpose vehicles are sedans,station wagons, minivans, sport utility vehicles, and pickup trucks with less than one ton payload.) 1. Depending on estimated cost, submit a CAO Report or Council Agenda Report requesting authorization to buy a used vehicle. 2. Search for a vehicle through dealers who sell used rental vehicles for major rental companies. 3. Select a late model,low mileage vehicle that appears to be in excellent overall condition. Consider only vehicles with options needed to meet work requirements and typical comfort needs. Avoid vehicles with options like fancy wheels or leather upholstery that might be perceived as luxurious or extravagant, even if there is no difference in price compared to ordinary options. 4. Perform a technical inspection to confirm the vehicle is in excellent condition. 5. Negotiate a purchase price, including an extended warranty as appropriate, to be included in a written buyers order from the dealer. 6. Prepare a payment voucher and submit a CAO Report for approval. 7. Forward the payment voucher to Finance Department. 8. Receive the vehicle and examine it for defects and conformance to the buyers order. If satisfactory,pick up the check from Finance Department and pay the dealer. 9. Forward any title documents to Finance Department. 14 8-21 Section 405-L PROCEDURE TO BUY A USED VEHICLE OR EQUIPMENT ITEM OTHER THAN A GENERAL PURPOSE VEHICLE 1. Depending on estimated cost, submit a CAO Report or Council Agenda Report requesting authorization to buy a used vehicle. 2. Search for the vehicle or equipment item through dealers who sell used vehicles and equipment. 3. Select a vehicle or equipment item that appears to be in excellent overall condition. 4. Perform a technical inspection to confirm the vehicle or equipment item is in excellent condition. 5. Negotiate a purchase price to be included in a written buyers order from the dealer. 6. Prepare a payment voucher and submit a CAO Report for approval. 7. Forward the payment voucher to Finance Department. 8. Receive the vehicle or equipment item and examine it for defects and conformance to the quotation or buyers order. If satisfactory, pick up the check from Finance Department and pay the dealer. 9. Forward any title documents to Finance Department. 15 8-22 Section 405-M - PROCEDURE TO IDENTIFY VEHICLES OR EQUIPMENT ITEMS TO BE DISPOSED OF 1. When a vehicle or equipment item is replaced or otherwise permanently removed from service, report to the Finance Director that it is surplus and available for sale. 2. Include in each such report the following information for each vehicle or equipment item reported: • City identification number(e.g., 8901) • Vehicle identification number(VIN) • Model year(e.g., 1989),make (e.g., Ford),and model (e.g.,F-350) • Description (e.g., one-ton truck) • Assigned department(e.g., Public Works) • Assigned program (e.g., Signal and Light Maintenance) • Acquisition year(e.g., 1989-90) • Estimated surplus value • Basis of estimated surplus value(e.g.,blue book,previous auction proceeds) • Current odometer or hourmeter reading • Justification for replacement • Current location 16 8-23