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HomeMy WebLinkAboutMINUTES - 01041994 - IO.10 I . -1° Contra To: BOARD OF SUPERVISORS FROM: INTERNAL OPERATIONS COMMITTEE Costa� •� L n, ;s O:. County December cQ 13, 1993 DATE: . A couK� SUBJECT: REPORT ON PLANS FOR THE NEW GENERAL SERVICES DEPARTMENT SERVICE CENTER AND PRODUCTIVITY STANDARDS FOR FLEET MANAGEMENT EMPLOYEES SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS.: 1 . ACCEPT the attached report on plans to replace the General Services Department' s Fleet Management Service Center and sell the property where the current Service Center is located to Shell Oil Company, whose property adjoins the current Service Center. 2 . ACCEPT the attached report on performance measures which have been developed for Fleet Management Division staff and express the Board' s appreciation for the excellent measures which have been developed. 3 . REQUEST the Director of General Services to meet with the largest customers of the Fleet Services Division, including the Public Works, Sheriff, Social Services and General Services Departments, as well as representatives from Local 1, to review the performance standards which are being used by Fleet Management. The goal should be to insure that the standards are understood by the Fleet Management Division' s customers and that these customers have had an opportunity to review and comment on the standards from their individual perspectives. 4 . REQUEST the Director of General Services to identify both public agency and private agency standards which are generally accepted in the industry which quantify the performance measures and then begin to track the County's performance:, measured against both public agency and private agency standards . The results of this tracking should be provided to. the Board of Supervisors by the end of calendar year 1994 . CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD C MM TT APPROVE OTHER SIGNATURE ACTION OF BOARD ON january 4, 1994 r APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE A UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED v Contact: PHIL BAT ELOR,CLERJUF THE BOARD OF cc: See Page 2 . SUPERVISORS AND COUNTY ADMINISTRATOR BY ,DEPUTY I .O.-10 -2- 5 . REMOVE this item as a referral to the 1993 Internal Operations Committee. BACKGROUND: On August 3, 1993, in responding to a Grand Jury report on the County's Fleet Management Division, the Board of Supervisors asked that the Director of General Services report to the Internal Operations Committee in December on two issues: • The plans for replacement of the Division' s Service Center, and • The establishment of industry-based standards of productivity for Fleet Management Division personnel . On December 13, 1993, our Committee met with Deputy General Services Director Kathy Brown and Fleet Management Division Chief Al Barba and reviewed the attached report. It seems clear from our review that the consulting firm which has been retained to design the new Fleet Management Service Center will be able to incorporate all appropriate features which will insure that the County has a state-of-the-art Service Center which will assist in insuring the effective and efficient maintenance of the County' s vehicles . It is also noted in the attached report that Fleet Management is also bidding on and being awarded contracts to provide fleet management services to other public agencies . Our Committee also reviewed the performance measures which are included in the attached report. We are very pleased with these performance measures, which could serve as a model for other department in establishing their performance measures. Ms . Brown and Mr. Barba noted that comparisons can be made with either private sector agency standards or with public sector agency standards . The public agency standards are in the process of being developed. What is necessary now is to take the performance measures that have been selected, establish objective external standards for each of these measures and then compare the Fleet Management Division's performance with the agreed-upon standards in the performance measurement areas which have been outlined. We are suggesting that both public and private sector standards be reviewed since there are, apparently, legitimate reasons for the use of public agency standards which may allow more time for such items as safety checks, which the private sector standards do not necessarily include. We are also asking General Services to meet with its largest customers as well as the employee organization which represents the Fleet Management Division employees to insure that both the customers and the employee organization have had an opportunity to have input into the development of the standards and understand and are comfortable with them. cc: County Administrator General Services Director Public Works Director Sheriff-Coroner Social Services Director Assistant Personnel Director Henry Clarke, General Manager, Local 1 GENERAL SERVICES DEPARTMENT 1220 Morello Avenue, Suite 200 Martinez, California 94553 Extension 3-7100 DATE: December 7, 1993 TO: Internal Operations Committee FROM: Barton J. Gilbert erector of General Services By: Kathy Brown,` ty General Services Director SUBJECT: Report on Fleet Management Division and Productivity/ Performance Standards and the New General Services Department Service Center In response to the Board of Supervisor' s request to report to the Internal Operations Committee on the County Fleet Management operations, we are providing the General Services Department Fleet Management Division' s goals, fleet performance measures, and an update on the General Services Department replacement Service Center, of which the Fleet Management Division will be a part. BACKGROUND Based on your Committee' s recommendation to the Board of Supervisors on August 3, 1993, in response to a 1992-93 Grand Jury report, the Board requested that we report back to you in December, 1993 with more formal standards of productivity/performance measures for our fleet maintenance work and a status report on a replacement Service Center for the Shell Avenue Corporation Yard. These requests stemmed from the Grand Jury' s interest in ensuring that our Mechanics are competitive with the private sector and have a modern replacement Service Center. The Grand Jury had been advised that the current Fleet Service Center, which is in an old building, would probably be replaced because Shell Oil Company was interested in purchasing the County' s property next to the Shell refinery. STATUS OF REPLACEMENT SERVICE CENTER The Shell Oil Company has formalized its offer to buy the County property adjacent to the Martinez refinery, and the scheduled completion and move-in period is December, 1994 . To prepare for the replacement center, Architectural Services in coordination with the County Administrator' s Capital Facilities staff, arranged for Interactive Resources to prepare the preliminary design plan. Interactive Resources did the design for the Public Works facility at Waterbird Way, and the firm has designed other fleet facilities . The Board of Supervisors approved a consulting agreement on Tuesday, December 7, 1993 with Interactive Resources, who has met the County's Minority and Women Business Enterprise Contract Compliance Program, to provide architectural Internal Operations Committee December 7, 1993 Page -2- services to prepare for construction of the new Service Center at Waterbird Way. County staff looked at the new Alameda County Fleet Service Center and shared design plans with Interactive Resources . All of the employees from Fleet Management, Building Maintenance, and Communications have reviewed the preliminary plans on the design of the new Center, and provided suggestions for changes . Employees had some concerns that the replacement center is smaller than the space they currently have at Shell Avenue. Because of those concerns, three sections were added to the design plan. While the proposed center still is not as large as the current space, it has more usable work space, but still lacks in space for inventory and materials storage, particularly on the Building Maintenance side. Further expansion now would require too great a debt service. The facility is designed so that additional sections can be added to allow for any needed expansion. The design allows for sharing of clerical support staff and a coordinating all the materials processing and inventory management. The new facility will meet all building and environmental codes and regulations related to Communications, Building Maintenance, Fleet, and Agriculture, which will have one section of the building. FLEET MANAGEMENT PERFORMANCE MEASURES Our Fleet Management staff have been working for some time with information gathered by a consultant, Mike Corbett, who is working for the California Energy Commission, and with other Fleet Managers from counties and cities throughout California, to identify fleet measures of performance to be more competitive in the spirit of "reinventing government. " Our Fleet Manager and Assistant Fleet Manager belong to the Public Fleet Managers Association, which works diligently to assist its members in being more efficient and competitive, especially in the current environment. An example is the City of Pleasanton, Fleet Division, which recently won the bid to maintain the local school district' s vehicles . The School District had been contracting out fleet maintenance to a private vendor, but the private vendor was not checking the brakes and one vehicle had an accident. The other vehicles showed more than half had poor brakes . The School District prepared a bid package and opened it up to both private and public fleet operations . The City was successful in being the low bidder for the level of service, including the safety checks the schools wanted. Similarly, our Fleet Management Division recently responded to the County Schools bid solicitation for vehicle maintenance. Both private and public agencies were invited to bid, and we have been advised that our bid was the lowest. Internal Operations Committee December 7, 1993 Page -3- We are also in the process of working out an agreement with the Central Sanitary District to allow its vehicles to fuel at the Waterbird Way County fueling facility. This will save the Sanitary District money over outside gasoline prices, and it will allow the County to benefit in spreading the overhead costs of the fueling facility. The County might also receive additional discount fuel prices with increased quantities purchased. Our employees are aware of the changing environment to be more competitive, and most of them are enthusiastic about the competition. They feel it is important to provide good service to their customers . They are also concerned about the numerous County vehicles that have high mileage, but departments do not have funding for replacement. One best management practice, that the County does not do, is to establish an internal service fund to allow for the full costs of vehicle maintenance, repair, and replacement. When we develop a cost per mile figure for vehicles, it is an artificial figure because all the capital costs, including vehicle equipment and vehicle replacement are not included. It makes it difficult to compare fleet costs across other agencies, when we do not include the same components in the costs . Many departments are unable to replace their old and troublesome vehicles when the annual vehicle replacement budget is only $126 , 000; and there is insufficient funding in the vehicle depreciation accounts . Establishing an internal service fund for the Fleet was one of the recommendations made last year by the consulting firm, MSI , hired by the County. This recommendation was not approved by the Office of the County Administrator. Our goals and performance measures are formalized in the attached document, and the Fleet Manager will monitor them and take whatever corrective actions are needed. BJG:KB:mak Attachment cc: Claude Van Marter, Office of the County Administrator Tony Enea, Office of the County Administrator Sondra Rothwell, Office of the County Administrator Barton J. Gilbert Al Barba Joe Romiti GENERAL SERVICES DEPARTMENT FLEET MANAGEMENT GOALS AND PERFORMANCE MEASURES I . FLEET MANAGEMENT DIVISION MISSION STATEMENT To provide efficient and effective maintenance, repair, fueling, and management of fleet services and radio communications for the benefit of Contra Costa County customer agencies/departments. A. GOALS 1 . To establish financial data that identifies all of Fleet Management 's costs and allocates those costs according to County policy. 2 . To keep Fleet Management service delivery costs competitive with those of outside service providers. 3 . To centralize the Fleet Management function to maximize economies of scale and efficiency of operation. 4 . To maintain a management information system that provides data including costs for fleet operations to enable staff to make the most efficient use of resources . 5 . To maintain a Preventative Maintenance (PM) Program that incorporates : a. planning and scheduling of maintenance that ensures minimum vehicle downtime; b. manufacturer and agency maintenance standards; C. multi-echelon approach to scheduling PM service tasks in intervals which recognizes that all vehicle components do not wear out at the same rate and do not have to be inspected at the same intervals; d. compliance with mandated regulations for smog and bi-annual inspection of terminals (BIT) inspections; e. staff training; - 1 - f. automated scheduling by department requiring minimal staff time; g. prevention and detection of major repairs to reduce unscheduled repairs; h. safe operation of vehicles; i . management of inventory, stocking levels, charging out, and security and purchase of quality parts and materials at lowest costs; j . preventative maintenance schedules that permit consolidation of other outstanding repair work and statutory inspection work to minimize downtime of the vehicle; k. PM tasks directed toward energy efficiency, including regular filter changes, maintaining proper tire pressures, a tune-up program that ensures the engine is operating at peak efficiency, and fuel audit tracking that identifies inefficient engine operations; and 1 . an operator maintenance program that requires operators to perform daily/weekly maintenance procedures and to report problems to Fleet Management. 6 . To establish a repair program that incorporates : a. a "quick fix" service; b. warranty recovery of all economically justified repairs whether done in house or at a commercial site; C. state of the art tools and equipment as permitted by budget; d. estimated time to make each repair; e. customer oriented repair scheduling; f. a quality control program; g. an operator inspection program for detecting problems between PM services; 2 - h. managing repairs resulting from vehicle accidents; and i . on-going evaluation of services that can be done in house or by contract at a lower cost with high quality. 7 . To provide fueling sites that are economical, available 24 hours per day, and meet environmental health requirements. 8 . To prepare accurate specifications and recommend vehicles for replacement in a systematic and cost effective manner for the type of vehicle use and available funding. 9 . To prevent pollution by complying with all laws, rules, and regulations pertaining to waste, hazardous materials, and air quality. 10. To monitor and document incidents of vehicle abuse and advise affected departments of findings . 11 . To meet customer expectation for service within authorized budget levels . 12 . To support Federal, State, County and General Services Department policies and procedures related to the health and safety of employees and the public, best management practices, affirmative action programs, and prudent fiscal controls . B. PERFORMANCE MEASURES The Fleet Management Mission Statement, stated goals, plus "best vehicle management practices" support the following performance measures . 1 . Measure: Total actual operating costs vs budgeted costs . Rationale: Provides an indicator of cost savings achieved, inaccurate assumptions in the budgeted cost, overexpended resources either in the Fleet Management Division or in individual departments . - 3 - 2 . Measure: Ratios of different operating costs : a. Ratio of administrative overhead costs to total operating costs . b. Ratio of maintenance and repair costs to total operating costs. C. Ratio of fueling costs to total operating costs . d. Ratio of motor pool costs to total operating costs . Rationale: Provides percentages of operating costs to make comparisons with other fleets and trend analyses. 3 . Measure: Total vehicle cost per mile/hour by class by vehicle Rationale: Provides a measure of the unit cost of a fleet mile or vehicle hourly usage by class and by vehicle. 4 . Measure: Vehicles by department which are accumulating less than 3,000 miles/year. Rationale: Provides a measure of idle capacity and possible waste of fleet resources . 5 . Measure: Number and percentage of vehicles with accumulated mileages of 90,000, 100,000, and over 100,000 miles . Rationale: Provides measures of the number of vehicles which have high mileage and should be scheduled for replacement. 4 6 . Measure: Number of qualifying vehicles, based on age, condition, or high mileages, that have planned replacement funding. Rationale: Provides measure of vehicles that need to be replaced and the resources available to fund them. 7 . Measure: Percentage of specifications prepared within four weeks of request. Rationale: Provides a measure of the turn around time for vehicle specification preparation. 8 . Measure: Number and percentage of vehicles exceeding standards on the number of repairs, cost of repairs, road calls, downtime, oil and fuel consumption, and cost per mile. Rationale: Provides a measure of variables used in a mechanical evaluation process that supplements economic life analysis (i .e. ability to identify a "lemon" ) . 9 . Measure: Labor rate of private sector garages . Rationale: Provides a benchmark for comparison of County mechanic labor rate with the outside. 10 . Measure: Fully burdened rates per gallon of fuel at County fueling facilities . Rationale., Provides a measure of the efficiency of County fueling services to outside fueling services . 5 11 . Measure: Ratio of number of fleet vehicles to number of Fleet Management employees. Rationale: Provides a benchmark for comparison with other fleets and industry standards . 12 . Measure: Average annual number of labor hours charged to repair orders by in-house personnel. Rationale: Provides a measure of in-house productivity. Measure: Turnaround percentages for repairs: Percentage of repairs that have turnaround time within one day; percentage of repairs that have turnaround time within two days; percentage which is greater than two days . Rationale: Provides a measure of efficiency of repair services. Typical performance target: 70%, 20%, 10% respectively. 14 . Measure: Percentage of all vehicles and equipment scheduled for a PM inspection within a month, or other scheduled interval, that have the PM inspection performed within that period. Rationale: Provides a measure of whether PM's are performed when scheduled. Typical performance target: 95%-98%; annual inspections 100% . 6