HomeMy WebLinkAboutMINUTES - 01082008 - C.140 TO: BOARD OF SUPERVISORS -,
FROM: INTERNAL OPERATIONS COMMITTEE
Costa
DATE: DECEMBER 17, 2007 SrA �_�
County
SUBJECT: STATUS OF DISPOSITION OF LOW-MILEAGE FLEET VEHICLES
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. ACCEPT report prepared by the General Services Department on the current disposition of 27 vehicles
previously identified as underutilized(driven less than 3,000 miles in the last 12 months)and
candidates for retirement or reassignment.
2. ENCOURAGE departments to designate a"fleet coordinator"to work with the General Services
Department to optimize vehicle usage.
3. DIRECT the General Services Director to restrict vehicle acquisitions for departments that do not
comply with reutilization requests.
4. DIRECT the General Services Department to analyze the minimum mileage guideline to determine the
optimal minimum annual mileage to justify maintaining a vehicle in the County fleet and to report back
to the Internal Operations Committee with any recommended changes to the minimum mileage
guideline.
5. DIRECT the General Services Department to continue to report annually to the Internal Operations
Committee on vehicle utilization and disposition.
1017
CONTINUED ON ATTACHMENT: YES SIGNATURE:
COMMENDATION OF COUNTY ADMINISTRATOR COMMEND OF BOARD COMMITTEE
APPROVE OTHER Q,
SIGNATURE(S): _S- ,,A 1/�
SAN A.BONILLA,CHAIR 19GAYLE B.
ACTION OF BOARD O APPROVE AS RECOMMENDED O R
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
UNANIMOUS(ABSENT_pCOPY OF AN ACTION TAKEN AND ENTERED
V UNANIMOUS(ABSENT ON THE MINUTES OF THE BOARD OF SUPERVISORS
ON THE DATE SHOWN
AYES: NOES: ATTESTED: JANUARY 8,2008
ABSENT: ABSTAIN: JOHN CULLEN,CLERK OF THE BOARD OF
SUPER SORS 4NbCOUWTY ADMINISTRATOR
CONTACT: JULIE ENEA(925)335-1077 BY DEPUTY
CC: INTERNAL OPERATIONS COMMITTEE STAFF
MICHAEL LANGO,GENERAL SERVICES DIRECTOR
JASON CRAPO,SENIOR DEPUTY CAO-MUNICIPAL SERVICES
Disposition of Low Mileage Fleet Vehicles December 17,2007
Internal Operations Committee Page 2
In follow-up to a May 23, 2006 Board directive to analyze the County fleet annually to ensure optimal
use of fleet resources, the General Services Department (GSD), on August 6, reported to the Internal
Operations Committee regarding 152 low-mileage vehicles (those vehicles that were driven less than
3,000 miles in the prior 12-month period). Of the 152 low-mileage vehicles, it was recommended that
27 vehicles be surrendered to Fleet Services to be either sold, salvaged, or reassigned. The remaining
125 low-mileage vehicles are either grant-funded, special-purpose, or were justified to be maintained for
operational reasons.
On December 17,the GSD provided the attached report to our Committee on the status on the 27
vehicles identified as low-mileage in the August report. GSD was able to save the County more than
$150,000 be reassigning vehicles to higher use needs within the Fleet rather than purchasing replacement
vehicles. The County must maintain and carry insurance for each vehicle in the fleet regardless of
utilization. To achieve the highest economy, it is important to regularly review vehicle usage to ensure
that fleet resources are deployed optimally. GSD reviews the Fleet annually as part of its budget
preparation and reports to our Committee, which reviews the proposed annual replacement and purchase
list and any recommendations for redeployment of low-mileage vehicles.
• s
lc NTR',A COSTA COUNTY
If� Generl Services Department Michael J. Lango
I
ADNIINISTRAI'IVE SERVICES Director
Terry Mann
Deputy Director
Stephen Silveira
Administrative Services Officer
DATE: December 12, 2007
TO: I t7nal Operations Committee
FROM: i ael J. Lango, Director of General Services
SUBJECT: 2006 UNDERUTILIZED VEHICLE REPORT STATUS UPDATE
This report is provided to update the Internal Operations Committee on the status of the 2006
Underutilized Vehicle Report and subsequent vehicle reutilization efforts conducted by the General
Services Department (GSD) as directed.
RESULTS
GSD has reassigned or sold as surplus 10 of the 27 vehicles identified as underutilized (Probation
and Health Services), and accepted justifications on 2 additional vehicles. These 12 vehicles are
highlighted in green on Attachment A.
Additionally, another 6 vehicles (CSS, Health Services, and EHSD) have been reassigned or have
justifications requiring re-evaluation at year-end. These vehicles are highlighted in yellow on
Attachment A.
Actions taken on the reassigned vehicles include: reassignment internally to a higher usage,
evaluate commercial rental vehicle service as an option to the County owned unit, and clarification
on an EHSD grant funded vehicle that unfortunately is used very little. The remaining 9 vehicles
identified on the turn-in list have had no action taken (Public Works and EHSD), although EHSD
has advised they have recently filled the vacant position previously responsible for EHSD fleet and
expect to address this issue soon.
COST SAVINGS
As a direct result of the vehicle reassignment process associated with the underutilized vehicle
report, GSD has identified a one times saving via cost avoidance of $175,590. GSD was able to
reassign 8 vehicles turned in on the underutilized report to departments needing replacement
vehicle acquisitions for 2007/2008 and GSD was also able to fill a departmental additional vehicle
request with a turned in vehicle. As a result, even though the underutilized vehicle reassignment
and evaluation has not been completed, the County was able to forego 9 vehicle purchases this
year and avoided incurring $175,590 in new vehicle acquisition expenses as detailed in the
following table.
1220 Morello Avenue • Martinez, CA 94553
(925) 313-7100 Phone • (925) 313-7108 Fax
December 12, 2007
Page 2 of 3
REASSIGNED REPLACED TYPE DEPARTMENT REPLACEMENT COST
UNIT UNIT
0494 0642 sold SEDAN HEALTH SVCS $19,760.00
0496 0471 sold SEDAN PROBATION $19,760.00
0520 0472 sold SEDAN PROBATION $19,760.00
0521 0473 sold SEDAN PROBATION $19,760.00
0522 0314 sold SEDAN PROBATION $19,760.00
5026 5135 sold PICKUP PROBATION $22,970.00
0770 3644 sold SEDAN ASSESSOR $19,760.00
1413 5570 sold SEDAN PROBATION $19,760.00
4477 ADDITIONAL VAN HEALTH SVCS $14,300.00
TOTAL $175,590.00
Furthermore, the 8 reassigned vehicles and another sedan sold outright (all from the underutilized
report) represent a net reduction to the County fleet of 9 vehicles. This results in ongoing savings of
$23,130 annually by eliminating base/insurance charges and operating expenses ($2570/year) for
the nine vehicles.
BACKGROUND
At the end of each calendar year, the GSD Fleet Services Division publishes a report to the Internal
Operations Committee (IOC) documenting the County vehicles that have not met the minimum
mileage standard of 3,000 miles annually. This reporting has been done since 2005 and was
implemented at the direction of the IOC.
For the 2006 calendar year report, GSD actively engaged County departments impacted by the
report. To assist in the process, GSD provided quarterly mileage reports throughout the year to
better enable proactive asset management by County departments. The ultimate goal of the
Underutilized Vehicle Report is to identify and redirect specific underutilized vehicles for
reassignment to other departments with documented vehicle needs. Twenty-seven of the 152
vehicles on the Underutilized Vehicle Report were identified for reassignment to another
department, use in the GSD loaner pool, or evaluation as surplus equipment.
PROCESS
At the IOC's direction, GSD screened the 2006 underutilized vehicle report to identify which
vehicles could be reassigned, while minimizing potential impact to County departments. The
vehicles identified for reassignment or surplus were selected as opportunities for the greatest
immediate improvement.
The factors considered for selection include the annual mileage, frequency of use, justification for
low use, number of other low use vehicles at the specific location, and number of low use vehicles
in the department. The intent was to redirect low mileage vehicles with the expectation that other
low use vehicles at the same location would see an increase in annual mileage.
The 27 vehicles identified for reutilization were then separated from the main underutilized vehicle
report and focused on specifically. The 27 vehicles and intended disposition were presented to the
IOC in August 2007. Subsequently, a memorandum from the GSD Director was sent to the
respective department heads to inform them of the need to reassign or surplus underutilized
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vehicles. The GSD Fleet Manager also initiated contact with departmental fleet coordinators and to
assist in the reutilization process.
RECOMMENDATIONS
1. Continue the vehicle usage reporting and reutilization process. Even though the first round is
not complete, the savings identified and increased efficiencies warrant continuation.
2. Encourage departments to designate a "fleet coordinator" with sufficient authority to effectively
manage their vehicle use. Some departments lack the ability to identify where vehicles are
assigned within their own department and who is using them.
3. Restrict vehicle acquisitions for departments who do not comply with reutilization requests. This
seems to be an effective tool for improving compliance.
4. Evaluate County vehicle minimum usage parameters. The current minimum mileage
requirement of 3,000 miles per year set forth in AB 508.2 may not be optimal.
c: John Cullen, County Administrator
Jason Crapo, Senior Deputy County Administrator