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Home My WebLink AboutMINUTES - 03181997 - C88 TO: BOARD OF SUPERVISORS ` "S'...`"" Contra rs FROM: / Cost ost Finance Committee o .- ;� v JlQ x, Y County DATE: March 18,1997 CciuNCt cTy SUBJECT: GENERAL SERVICES COOPERATIVE SERVICE AGREEMENTS WITH OTHER PUBLIC AGENCIES AND VEHICLE REPLACEMENT PROGRAM SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACCEPT the report from the General Services Department regarding Cooperative Services Agreements with other Public Agencies. 2. REQUEST the staff of the General Services Department and Administrator's Office to return to the Finance Committee in late April or early May and discuss the vehicle replacement program after further examination into the several methods to budget and account for vehicle replacement, sources of funding and various ways to cut costs. BACKGROUND: On March 3, the Finance Committee reviewed the General Services Department reports on Cooperative Service Agreements with other Public Agencies and the Vehicle Replacement Program. Several representatives from the General Services Department were present to answer questions and augment the written reports. The Committee complimented the Department for the efforts at cooperative service agreements. The Committee determined that the vehicle replacement report be reconsidered in late April or early May, after further research can be completed into the following areas: CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVEOTH SIGNATURES: .T Canciamilla v Gayle B. Uilkema ACTION OF BOA APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE J 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 MAR 18 1997 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF CC: Sheriff SUPERVISORS AND COUNTY ADMINISTRATOR General Services CAO, George Roemer CAO, Carol Chan BY DEPUTY Page 2 a) a new sinking fund for vehicle replacement; b) a reconfigurated depreciation fund which accumulates monies based on the total costs for vehicle replacement; c) a review of the Trust Funds under the Sheriff's Department to ascertain available funding; d) a review of the Helicopter Program to ascertain available funding; e) an examination of contracting out prisoner transportation to determine cost savings; and f) a review of the cost benefit of maintaining old vehicles which have low mileage usage. GENERAL SERVICES DEPARTMENT 1220 Morello Avenue, Suite 200 Martinez, California 94553 Extension 3-7100 FAX 3-7108 DATE: September 25, 1996 TO: Phil Batchelor, County Administrator Attention: Tony Enea, Senior Deputy County Adminstrator FROM: Barton J. Gilbefor of General Services By: Kathy Brown, uty General Services Director SUBJECT: Report to the Finance Committee as Requested in FY1996/97 Budget Hearings Two reports were requested for General Services to respond to the Finance Committe as a follow-up to the Board of Supervisors' FY1996/97 budget hearings. The two matters include vehicle replacement, particularly for Sheriff patrol vehicles, and cooperative agreements between the General Services Department and other public agencies for providing more cost effective services. These reports are attached for placement on the Finance Committe's agenda. Please call me if you have questions. I have noted that October 30 might be the agenda date, and you will confirm the date with me after you return from vacation. cc: Barton J. Gilbert General Services Department Report on Cooperative Service Agreements With Other Public Agencies In response to the Board of Supervisors' request to identify cooperative service agreements between Contra Costa County and other public agencies and possible future agreements that might be developed, the General Services Department promotes such cooperation and would like to develop more agreements. Currently the Department has a variety of interagency agreements wherein Department staff provide services to other agencies and special districts. Staff from some of the Divisions are making proposals to increase these. Where it is cost effective to do, the Department also plans to contract with other agencies to provide their services. Staffs are working with Alameda County General Services Agency to develop an asbestos safety training program for Contra Costa General Services employees by certified asbestos specialists from Alameda County. Another contract with Alameda is also being pursued to use architectural staf& recently transferred to Alameda County General Services Agencyfromithe Alameda County Public Works Department. General Services is the lead department with the County's participation in ABAG's natural gas cooperative agreement serving Bay Area governmental agencies. ABAG is planning to propose a similar cooperative agreement for electricity to begin January 1, 1998, when restructuring permits aggregation of electric accounts. Contra Costa County General Services Divisions with current and prospective interagency agreements and services are described below. Divisions welcome opportunities to expand their relationships with other public agencies, and such contacts might be to discuss common concerns and solutions as well as to enter into more formal joint agreements. The California Association of General Services Departments prdvides leadership to County General Services Agencies/Departments in the various disciplines included within their operations. This is the parent group. There are subunits, such as the Facilities Management Association, which led to the proposal for joint services with Alameda County. There are other public agency organizations, including the Association of Public Safety Communication Officials(APCO) and the County Fleet Managers Association,which work together to improve the quality and efficiency of services provided. General Services Divisions With Interagency Agreements ► Building Maintenance This Division has 12 Traffic Signal Agreements with cities: Antioch, Brentwood, Orinda, El Cerrito, Danville, Martinez, Clayton, Pleasant Hill, Hercules, Concord, San Pablo, and Moraga. On September 17, the City of Richmond requested a Page 1 proposal from the County to maintain the traffic signals on the Richmond Parkway, where the City is looking to contract for this service. Building Maintenance provides maintenance and/or security alarm systems as requested to Special Districts: Ambrose Park and Recreation District, Fire Districts, Z-38 Lefty Gomez Park Lights, Z-16 Crockett Park, and non County-owned Libraries. Architectural Services Staff provides design/ remodeling project management for Ambrose Park and Recreation District, Fire Districts, Housing Authority, M-16 Clyde Park, Z-16 Crockett Park, R7A Livorna Park, M-8 Discovery Bay Park, LL-2 Pleasant Hill Pocket Park,-Z-38 Rodeo Creek Trail, and Z-38 Lefty Gomez Park Field. ► Telecommunications Telecommunications has an agreement with the State Office of Employment Development Department(EDD) for $40,320 annually for its use of the County's CENTREX Telephone contract in West County; It provides radio/microwave maintenance, services, and/or leases: Contra Costa Water District, East Bay Regional Park District, Pacific Gas &Electric, Mt. Diablo Unified School District, BART, Contra Costa Mosquito Abatement District, CalTrans, all MEDARS Hospitals, Pittsburg Police, San Ramon Valley Fire District, Albany Police, Lafayette(Sheriff contract city), Antioch, Liberty Union High School, Rodeo Fire, Concord Pavilion, Mt. Diablo Unified School District, El Cerrito, Town of Moraga, Contra Costa Water District, Central Sanitary District, Pacific Bell, Cellular 1, Bethel Island Fire, Crockett-Carquinez Fire District, and Clayton. Telecommunications is aggressively seeking proposals with other agencies to provide radio and telephone services. It recently added the City of El Cerrito, Pittsburg, and Contra Costa Water District. Telecommunications also submitted requests for service to the City of Richmond, City of Martinez, and the City of Concord. The proposals have not been accepted, although the Concord Pavilion has requested some small jobs to be done. Telecommunications did a survey to see how competitive it is with outside contractors for radio and telephone communications services and data cabling. The results of the survey are shown on the attachments. The conclusion is that County staff can perform the full-range of communication services at overall rates lower than vendors. ► Grounds Services Page 2 In addition to the services provided through Keller funding to East Bay Regional Parks for trail maintenance, City of Pittsburg, to Ambrose Park and Recreation District, and to other local communities, Grounds Services has developed agreements to design and install landscaping, such as the R-7A Alamo Park Development, and to maintain parks in landscaping districts. The work in these special districts represents a larger program than the County's maintenance of its own landscaping areas. The lighting and landscaping special districts include Z-42 Skyline, Z-43 Luna Estate, Z- 45 Alamo Villas,Z-46 Claremont Hermosa,Z-47 Las Brisas, Z-48 Mrack Road, Z-49 Mead Glen, Z-50 Somerset,Z-29 Heather Park, Z-54 Alamo, Z-10 Evora road, Z-10 Pomo Court, Z-44 Oakley, Z-16 Oakley Medium, Z-16 Crockett Park, Z-1 2 and 4 Lynbrook Park, Z-3 Hickory Meadows, Z-7 Pleasant Hill BART, Z-8 Big Break Road, Z-22 Seabreeze, Z-09 Ambrose Park, Z-10 Viewpoint, Z-11 Hilltop, Z-13 Oakley, Z-14 Empire Avenue, Z-28 Oakgrove, Z-15 Vintage Park, Z-17 Shadowcreek, Z-28 Claremont Bay, Z-21 Kensington, Z-18 Pacheco, Z-24 Laurel Wood, Z-25 Antiqua,Z-20 Oakley, Z-32 Gateway, Z-17 Hidden Pond, Z-33 Village Greer}; Z-36 Alamo, Z-37 Cyde Park, Z-38 Rodeo, Z-39 Meadow Glen, Z-40 California Sunrise, and M-17 Montarabay(for special requests.) In addition Grounds handles weed abatement for properties referred by the Fire Districts and maintains other properties, such as rentals under the Flood Control District and Southern Pacific Right-of-Way under Public Works, and the Redevelopment Agency work requests. Grounds does not have any contracts with cities, except to provide litter and weed abatement from the Keller funds. ► Fleet Management Fleet Management also was included in a proposal to the City of Martinez to provide fleet maintenance and fueling services. This was requested originally by the City, but no formal response to General Services' proposal has been made, despite follow- up correspondence and telephone calls. The Department offered to take over the City's fleet maintenance and hire the one permanent mechanic. General Services thinks this would save the City money, but the City has not outlined its costs to provide these services in-house. Local No. 1 represents employees there as well as County maintenance staff. The Fleet Manager volunteered to assist the Housing Authority in preparation of a bid package for fleet maintenance and submitted a response to its request to compete for the Housing Authority's vehicle maintenance business. Fleet maintenance staff work -on the City of Lafayette's police vehicles through the Sheriff Department contract. Page 3 Fleet submitted a request to the City of Concord, at the Concord Fleet Manager's request, for Concord's Fleet staff to repair County vehicle transmissions, which are currently sent to dealers. The City did not submit a bid. Two years ago, the previous Fleet Manager submitted proposals to maintain the County Schools' vehicles. While the County's bid was low, the Office of Education chose to have the City of Concord maintain their vehicles. The County Fleet Manager plans to submit a new proposal. Central Sanitary District was solicited to purchase fuel at the Fleet's fueling facility at Waterbird Way, and Central Sanitary now has an annual contract at $25,000. Martinez School District is also being requested to consider the County to provide vehicle maintenance services. The Highway Patrol was invited to use County services, but they have their own fueling facility. In addition, the Fleet Manager is preparing a proposal to send to agencies within approximately 20 miles of the Shop to invite them to use some or all of the County's fleet services and fueling facility. Some agencies might want the County to manage their commercial vehicle programs,prepare vehicle specifications for bids, or "Iinog" their equipment even if they don't elect to have their preventive maintenance done by the County. Fleet has done surveys of labor rates for outside mechanic work, and County staff consistently have lower hourly rates than commercial dealers; however, for some types of work, the commercial dealers' have specialized mechanics who can complete some jobs faster than County staff. The County Mechanic staff is cheaper than outside competitors for services, such as patrol outfitting of lightbars, cages, and gun racks. County Fleet employees perform more safety checks as part of their services for County.vehicles and equipment. For services in which Fleet is not competitive, the work is generally contracted to local vendors. This work includes glass replacements, transmissions, body and fender work, Fleet has a contract with Santa Clara County to paint the Sheriff's buses using inmates, as Santa Clara's Fleet operation has a body/paint shop in the Detention Facility. Prison inmates at a State Corrections Facility in Sacramento also have done painting and body work on Sheriff's buses. ► Purchasing Purchasing enters into cooperative agreements with the State and other counties. In some cases Purchasing prepares major contracts and allows other counties to use them, such as the Office/Computer supplies contract. In other cases counties, such as San Mateo for its carpeting agreement or Los Angeles for its pharmaceuticals, prepare a contract and allow Contra Costa to benefit from the terms. Purchasing also Page 4 prepares and awards the bid package for the annual County Schools bid at no charge, which takes approximately 3 weeks of P,Vtchasing staff time. Purchasing prepares agreements with inclusive language so that other public agencies may use the County's agreements. Purchasing has assumed management of the Central Services functions as a cost savings measure, and the Purchasing Manager is discussing handling the monthly welfare check mailings for Solano County and use of printing services by the County Office of Education. Opportunities for Future Service Agreements Opportunities abound for the County, municipalities, special districts, and other public agencies to work cooperatively,.whether to provide services to each other or to share ideas on more effective ways to use limited resources. When public agencies work with each other in cooperative agreements, then all agencies are able to benefit from the economies of scale in sharing services and purchasing contracts. The General Services Department will continue to reach out to other agencies to share services. 9/23/96 Page 5 General Services Department Report on Replacement Program for County Vehicles With Emphasis on Sheriff Patrols As a follow-up to the Board of Supervisors budget hearings on vehicle replacements, particularly for Sheriff patrol vehicles, the General Services Department Fleet Management Division explored possible options for vehicle replacements in addition to the steps already taken to try obtain the best value replacements for the aging fleet. Last year, Fleet in cooperation with Purchasing checked bids for both new vehicles and used mid-sized vehicles, 2 years old, with 18,000 to 24,000 miles. The difference in cost averaged $3,000/vehicle less for the used ones versus the new vehicles. Twelve used vehicles were purchased by 2 departments: 6 for the Sheriff's Department's Civil Division to replace high mileage vehicles and 6 for the District Attorney also to replace high mileage cars. In some cases used vehicles are cost effective, but they would not be purchased for patrols because used vehicles'wouldn't have the factory installed police packages. In addition to the 12 used vehicles purchased, the Sheriff was able to purchase used buses from the Antioch School District and have them refurbished for inmate transportation. This saved $120,000 over what new buses would have cost. The Fleet Manager also contacted several counties and cities on their policies for vehicle and Sheriff/Police patrol replacements and on their mechanisms for funding vehicle replacements. A summary of this survey is described below. The survey results show that most agencies have internal service funds or rental rates that allow for collection of funds to be able to replace vehicles that have high mileages and/or maintenance costs, and they typically have a target for when vehicles should be replaced, either with the number of miles or number of years in service. The survey indicates that most agencies fund patrol vehicles through the collection of rental rates and grants or funding from the State. Public Agencies Surveyed for Vehicle Replacement Practices ► Solano County Solano replaces sedans including patrols, pick-ups, and vans after 100,000 miles or every 3 years using a monthly rental rate charged to customer departments. Patrols are charged @$855/month plus $.19/mile. Full-size sedans are charged $368/month and $.19/mile, and mid-sized sedans are charged at $227/month with $.12/mile. ► Alameda County Regardless of mileage on a vehicle, all patrols are replaced every 2 years; however, Page 1 the patrols with low mileages are reassigned to other areas of the county. Vehicles with over 80,000 are considered for replacement depending on the costs for maintenance compared to other vehicles in a comparable vehicle class. Alameda has an internal. services fund with a monthly rental rate plus mileage. The rental rate for patrol is $10.45/month plus.$.28/mile. ► City of Concord Every 3 years or 100,000 miles, Concord replaces its patrol vehicles. Replacement monies for non patrols come from an annual replacement fund that is charged back to user departments plus 6%annual inflation fee. Police vehicle funding comes solely from Proposition 172 funds. ► City of Richmond Richmond replaces police vehicles every 3 years or 100,000 miles. Replacement funds come from an annual collection from user departments. Other vehicles are replaced in an 8-10 year cycle after reviewing problems vehicles. Police vehicles are replaced with revolving funds paid in by departments. ► Santa Clara County Santa Clara replaces patrol and all other sedans at 100,000 or 10 years maximum. Replacement funds come from rental rates. Since 1979, all vehicles are lease- purchased. Patrols are leased-purchased for 3 years; and other vehicles are leased- purchased for 5 years. Patrol funding comes from State grants, and rental rates for patrols are based on depreciation plus interest. The monthly cost for a patrol is $134 plus $.25/mile. ► Monterey County This county replaces patrol at 95,000 miles or every 2.5 years with one third of the patrol fleet replaced annually. Sedans are replaced every 6 years and vans/pick-ups every 8 years. Depreciation funds are based on the purchase price to be recovered in 2.5 years. That plus the salvage money provides for the full replacement of each vehicle, except that patrols are funded through Proposition 172 funds from the State plus drug seizure monies and sale of seized assets. A rental rate of$10/month and $.26/mile is charged for patrol cars. ► Sonoma County Sonoma replaces patrol vehicles at 85,000 miles or every 28 months. Sedans are replaced at 80,000, and vans/pick-ups are replaced at 100,000 or every 8 years. A monthly fee of$850/month and$.20/mile are used as the rental costs for patrols. Of the monthly fee, $820 goes to a capital replacement fund which pays for all patrol Page 2 replacements. Other vehicles are charged a rental rate which is used to recover funds to pay for replacements. ► Santa Cruz County Patrols are replaced at 85,000 miles or every 2 years. Sedans are replaced at 80,000 or every 8 years, while vans/pick-ups are replaced at 100,000 miles or every 10 years. A depreciation account is used to collect funds to replace vehicles. A rental rate is charged for all vehicles, with a patrol vehicle charged at $1,562/month with no additional mileage fee. ► Santa Barbara County Every 2.5 years or 120,000 miles is the replacement schedule for Santa Barbara's patrol vehicles. Sedans are replaced at 100,000 miles or 7 years, and vans/pick-ups are replaced at 100,000 miles or 10 years. The Sheriff.Department provides the monies for any additional vehicles that are not covered with the depreciation replacement fund. A rental rate for all vehicles by class is used. Patrols are charged $550/month and $.19/mile. Compact cars are charged $195/month and $.10/mile. ► City of Livermore The City of Livermore replaces patrols at 85,000 to 100,000 miles. Other sedans are replaced at 100,000 or 7 years. Vans/pick-ups are replaced at 100,000 miles or every 10 years. The Cops Ahead funds and State grants are used for some replacements. No rental rates are charged, and repair costs are in the vehicle shop budget. Currently departments must fund their own vehicles. ► Los Angeles County The Public Works Department of Los Angeles County replaces sedans at 70,000 miles or 7 years, and vans/pick-ups at 90,000 or every 7 years. Vehicles are replaced using accumulated depreciation funds, with any additional costs paidby the departments. Rental rates for sedans are $.45/mile, and vans/pick-ups are $.46/mile. Patrol vehicles are funded through an internal 36-month lease program, where the County assigns an internal lease charge instead of using an outside vendor. Patrols are replaced by 100,000 miles. Their costs are reviewed at 70,000 miles; and if the costs are high, they are replaced sooner. ► City of Martinez Martinez replaces its patrols at 80,000 miles or 3 years, with the remainder of the fleet on an "as needed" basis depending on the cost to operate and the condition of the equipment. A rental rate using depreciation and operation cost is used with patrols being charged $11.25/month with no mileage charge. Some drug seizure Page 3 money is used to purchase under-cover police vehicles. Contra Costa County Vehicles are replaced when the operating costs, condition of vehicles, or unavailability of parts dictate. There is no policy on replacement intervals. Departments that receive General Funds annually are budgeted in the General Services budget for maintenance costs plus a capital replacement budget of$176,226. Other departments, including the Sheriff-Coroner, are budgeted for maintenance costs in their budgets. Actual maintenance, fuel, and repair costs plus insurance, depreciation, and a basic service fee are charged either to departments, such as Health Services and Public Works, or to General Services for all its vehicles and the other General Funded departments, including Animal Services, Probation, and other departments with assigned vehicles. Rental rates are not used. Vehicle replacements are funded in several ways. Departments can provide funding either internally to their department or through grants or other special funding. General Services will evaluate the vehicles, noting the age and condition, then develop a list of the vehicles to be replaced using the capital budget plus depreciation and salvage. When vehicles become uneconomical to drive, then General Services will recommend that the vehicles be replaced. Sometimes lease purchases are arranged when there's insufficient funding available for a replacement vehicle, but lower maintenance costs will pay for the leased vehicle over a few years. The Office of the County Administrator can allocate funds for additional vehicle replacements. Last year Chevrolet stopped manufacturing a police-model vehicle, so the only full- sized police sedan is the Ford Crown Victoria.- When Ford became the sole provider of a standard police vehicle, it raised the price.by$2,600/car. This additonal cost plus the annual cost-of-living increase has an immediate negative impact on our replacement of patrols. Sheriff Patrol replacements are made through the capital replacement budget in General Services. Because this budget has been reduced with other General Funding and the Sheriff has used depreciation money for retaining deputies and purchasing other vehicles that they feel they need, General Services does not have sufficient funding to replace but a few patrols each year. Recommendations Because there is no magic lamp to rub to obtain additional funding for vehicles, a new approach needs to be considered. General Services recommends taking the following steps. Page 4 ► Permit vehicle depreciation funds to be used only for vehicle replacements and not allow them to be taken for other purposes. ► Reconsider the recommendation from MSI, a private consulting firm hired by the County a few years ago, to establish an internal service fund for General Funded vehicles which would allow accumulation of depreciation and interest in a fund that would be dedicated to vehicle replacements, similar to Public Works' road vehicle fund. ► Start depreciating the vehicles based on the total replacement cost and not subtract out the salvage value. Currently depreciation accounts have insufficient funds to fully cover the cost of newer vehicles, when the old vehicles are to be retired. Repurchase costs with inflation are not now considered. The salvage cost could cover the inflation factor, although it would have to be appropriated into a different fund based on accounting practice. ► Consider a program for the future where Sheriff patrols would be replaced within a set interval or mileage. This could be a target goal so that there is flexibility to keep vehicles longer if some vehicles are still serviceable and economic to drive. The target interval for Patrols could be replacement every 4 years, which would mean charging a monthly depreciation cost of$500/montb/vehicle. Presently patrols are depreciated at $496/month for 36 months, but vehicles.are not replaced at those intervals. When patrols are replaced(or other County vehicles), the depreciation fund and capital replacement budget only cover part of the new replacement vehicle, and there is insufficient funds available to replace all the older vehicles. MSI, as noted above, studied the issue of an internal service fund to address this problem. ► Evaluate whether there are one-time funds that could be used to fund the shortfall in the Sheriff's vehicle depreciation fund because it has insufficient funds to cover replacements of all current patrol vehicles that need replacement at the 4 year- interval. From 1988-1993 there are 37 patrols that have high mileage and should be considered for replacement. The estimate of funds needed for replacement of all these patrols is $888,000. Using all the Sheriff's accumulated salvage and depreciation would leave an amount of$562,158 needed to fund the replacements. The vehicle maintenance budget could be reduced by$90,000/year, prorated to when the vehicles are replaced. Fleet Management staff estimate that patrol vehicle maintenance fees for patrols over 4-years-old could be reduced an average of $2,500/ year if the older patrols are replaced. Page 5 ► Note that General Services plans to replace 9 pool vehicles, assigned to the Main Street parking facility behind the Administration Building, with either new or late model replacements through a lease purchase. This will allow the high mileage daily rental vehicles, which are also used in the County's commute program and for which drivers have expressed concerns, to be replaced. The 1986 Ford Escorts all have well over 100,000 miles. The pool rental rate can be' increased by approximately $.70/hour to pay for the 9 replacements. ► Request that General Services continue to evaluate methods of purchasing replacement vehicles and methods of maintenance efficiencies that could translate into savings toward vehicle replacements. 9/24/96 Page 6 CD 0 0 0 Cr 0 0 0 CD 0 9 3 w a 0 0 0 0 fit CL -0 :3 0 3 o a) 0 3 3 3 0 C 3 0 w ai :1z 0 0w Cr. Cr. Ct. CD 0 C11. 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