The URL can be used to link to this page

Home My WebLink AboutMINUTES - 04042000 - SD2 TO: BOARD OF SUPERVISORS FROM: PHIL BATCHELOR County Administrator DATE: April 4, 2000 SUBJECT: REPORT ON GENERAL SERVICES DEPARTMENT FLEET REPLACEMENT POLICY Specific Request(s) or Recommendations(s) & Background & Justification RECOMMENDATIONS: 1. ACCEPT this report from the County Administrator regarding the review of General Services Department Fleet Replacement Policy. 2. ACKNOWLEDGE the excellent performance of the General Services Fleet Management Division in reducing the percentage of vehicles over 100,000 miles. 3. ACKNOWLEDGE the cooperative relationship of the General Services Fleet Management Division with the Sheriff-Coroner and Public Works Departments as they work together to provide an adequate supply of vehicles for public purposes. 4. REQUEST that the General Services Director update the Board on the status of the Contra Costa County Fleet as part of the FY 00/01 budget presentation. FINANCIAL IMPACT: None REASONS FOR RECOMMENDATIONIBACKGROUND: The Board of Supervisors directed the County Administrator to prepare a report reviewing Contra Costa County's Fleet Replacement Policy. The report includes: • Description of the County fleet including mileage and distribution of vehicles by Department. • Assessment on the progress of replacing vehicles over the last four fiscal years. • Description of the current vehicle replacement policy. • Survey of vehicle replacement policies in other counties. • Review of the organizational and prioritization process used for budgeting of vehicle replacement. CONTINUED tAT ACHME YES Signature: ,---�Recommendatio of County Administrator Recommendation of Board Committee ✓Approve Other Si natures Action of Boar u" Approved as Recommended Other SEE ADDENDUM FORABOARD ACTION Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN Unanimous(Absents AND ENTERED ON THE MINUTES OF THE Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN. Absent: Abstain:_ Attested: 1-1-21-20 ,Clerk of th BoardCAO Phil Batcheoard of General Services of Sup isors and County Administrator Sheriff-Coroner Contact: George Roemer 335-1055 By: DEPUTY ADDENDUM TO ITEM SD.2 April 4, 2000 On this date,the Board of Supervisors considered a report on General Services Department Fleet Replacement Policy. There were no requests to speak on the matter. Following discussion,the Board took the following actions: ACCEPTED the report on the General Services Department Fleet Replacement Policy; and REFERRED the matter to the Internal Operations Committee for a review of vehicle replacement policies of other agencies, and comments on developing a more formal policy. 3 Current Vehicle Inventory During FY 1999/2000 Contra Costa County will maintain a fleet of 944 light vehicles. The Fleet Management Division of the General Services Department is responsible for assisting in the purchase of new vehicles, and maintaining and repairing fleet vehicles and heavy equipment. Over 95% of all vehicles are assigned to specific Departments. Additionally, General Services maintains a motor pool of 35-40 light vehicles to provide transportation for County employees on an as-needed basis. Almost 30% of all County light vehicles are allocated to the Sheriff-Coroner. General Services accounts for almost another 20%, and Public Works just over 10%. Together these three Departments account for 60% of all County light vehicles. Table I Expenditure Patterns New vehicles are purchased each year as part of the Division's vehicle replacement program. Over the past five years Contra Costa County has purchased over $12 million in vehicles with one-third of the expenditures ($4 million) going to the Sheriff-Coroner. Annual expenditures increased 68% from $1,656,971 in FY 94/95 to $2,790,588 in FY 98/99. Table 2 Vehicle purchases include both additions and replacement to the fleet. Two-thirds (66%) of all vehicles purchased in FY 98/99, or 86, were replacements for current vehicles. One third (33%), or 44, were additions to the fleet. All additions to the fleet were purchased completely with Departmental funding. The $1.8 million for replacement vehicles was funded through a combination of departmental funding (58%), depreciation (31%), salvage (410), and the actual fleet budget (7%). Table 4 Historically, the General Fund contribution toward vehicle replacement has been limited, and accounted for only 7% of the expenditures for replacement vehicles. For years the General Fund contribution to Fleet Replacement was consistently maintained at $176,226. This allocation typically replaced 13 to 19 vehicles each year. In FY 99/00 the Board approved an increase in the Fleet General Fund Replacement Budget of $73,794, bringing the allocation to $250,020. The increase will allow 25 vehicles to be replaced in the current fiscal year. Additionally, the Sheriff requested that $400,000 of their General Fund increase in FY 99/00 be budgeted in General Services for vehicle replacement. These increases are expected to continue in future years. Vehicle Mileage The Fleet Management Division has been very successful at reducing the number of vehicles over 100,000 miles. In the past four years the number of vehicles over 100,000 miles decreased 24%, from 216 to 165. The percentage of vehicles over 100,000 miles declined 37.5%, from 28% to 17.5%. Table 3 Over seventeen percent (17.5%) of all County vehicles had more than 100,000 miles as of October 1999. The Sheriff-Coroner has a disproportionately low rate of vehicles with more than 100,000 miles, at 10.1%. Conversely, General Services has a disproportionately high rate of vehicles with more than 100,000 miles, at 24.7%. Table ' The average number of miles for vehicles replaced through the General Fund contribution decreased 16% in the past four years, from 169,984 miles to 141,858 miles. Table 3 All indications point to the favorable progress achieved in prioritizing vehicles for replacement. Vehicle Replacement Policy Based on the limited availability of funding, General Services has been unable to implement any formal and quantitative policy for vehicle replacement. Instead, informal priorities and criteria have been established which serve as targets for annual planning. The targets identify vehicles for replacement according to mileage and age of the vehicle. Additionally, vehicles that have experienced significant maintenance costs are also prioritized. The following Contra Costa County targets are informally implemented and limited by available funding: Sheriffs Patrol Vehicles 3 years or 100,000 miles Sedans 5 years or 100,000 miles Pick Ups — Gasoline 7 years or 100,000 miles Pick Ups — Diesel 10 years or 150,000 miles Vans 7 years or 100,000 miles Survey of Vehicle Replacement Policies in Other Counties In the fall of 1999, the Fleet Manager surveyed Fleet Operations in other counties. Each county was asked to submit their Vehicle Replacement Policy. Three responses were received and are summarized below: San Bernardino Countv— No written policy, but they "attempt" to replace motor pool vehicles at 10 years or 100,000 miles and heavy equipment at 7 years or 7,000 hours, "if' funds are available. The average unit life in the Transportation Fleet is 17 years and 6 years for Flood. Imperial County — The Board of Supervisors set the criteria for replacement of county vehicles at 7 years or 70,000. There are current efforts to increase the mileage to 65,000 on midsize cars, pickups, and vans, 90,000 on full-size vehicles and 100,000 miles on 1 ton or larger vehicles. Also, there is a ratio of repair to actual value of vehicle, when this amount is estimated for repairs, then the vehicle is rotated out and auctioned regardless of the miles or time. Solano County— Identified Vehicle Replacement "Goals" include: • To assure the safety of County employees and the general public, • To work within the financial constraints of the rate structure, • To obtain optimum usage of vehicles for a minimum of nine years with the exception of patrol vehicles. An exception to the nine year life cycle will sometimes be made if data indicates that a particular vehicle or group of vehicles is experiencing operating costs well below the normal. Additionally, Solano County data indicates that although some vehicles may still function reliably with more than 100,000 miles, repair frequency and cost both markedly increase if vehicles remain in operation past that mileage. Other counties did not submit vehicle replacement policies, and some specifically indicated that it was in the best interest of the County not to have a formal policy. Prioritization and Organizational Process Currently, the General Services Fleet Management Division has an annual operating budget of approximately $10.8 million including $2.8 million for the purchase of vehicles. In addition to purchasing vehicles the Fleet Management Division is responsible for the maintenance and repair of the County fleet. The replacement of old vehicles has reduced the workload in the Division, since repairs are more frequent and complex when a vehicle exceeds 100,000 miles. As part of the annual budgeting process, the Fleet Manager reviews each Department's vehicle inventory based on the mileage and maintenance history of each vehicle. The Fleet Manager submits to each Department, a list of vehicles recommended for replacement. Departments review the Fleet Manager's recommendations in light of their budget situation and decide which vehicles to target for replacement in the next fiscal year. Most Departments are able to complete the prioritization and budgeting process based on the objective information provided by the Fleet Manager. However, due to the size and nature of their fleets, the Sheriff-Coroner and Public Works Departments require rather extensive interactions with the Fleet Manager in order to determine vehicles to be budgeted for replacement in the next fiscal year. Both the Sheriff-Coroner and Public Works Departments have dedicated staff assigned to coordinating the fleet for their Departments. The Fleet Manager and the individuals assigned to the task of identifying vehicles for replacement at the Sheriff-Coroner and Public Works Departments have developed productive and effective working relationships that support them in making significant improvements to the fleet in light of their limited resources. SZ r` TABLE 1 - DISTRIBUTION OF LIGHT VEHICLES BY DEPARTMENT (as of October 1999) % of Number °Jo of Number Total >100,000 Vehicles Department of Vehicles Vehicles Miles >100.000 Sheriff-Coroner 276 29.2% 28 10.1% General Services 178 18.9% 44 24.7% Public Works 106 11.2% 16 15.1% Health Services 84 8.9% 20 23.8% Employment & Human Services 63 6.7% 0 0% Agriculture-Weights/Measures 42 4.4% 6 14.3% Building Inspection 40 4.2% 14 35.0% Probation 36 3.8% 3 8.3% Animal Services 27 2.9% 10 37.0% Community Services 25 2.6% 10 40.0% District Attorney 21 2.2% 6 28.6% Public Defender 14 1.5% 3 21.4% Community Development 9 1.0% 1 11.1% County Administrator 8 .8% 0 0% Coordinated Trial Courts 5 .5% 1 20.0% Miscellaneous Services 4 .4% 2 50.0% Library 3 .3% 0 0% Board of Supervisors 1 .1% 1 100.0% County Clerk-Recorder 1 .1% 0 0% Private Industry Council 1 .1% 0 0% TOTAL 944 100% 165 17.5% TABLE 2 - FLEET PURCHASES (FY 94/95 through 98/99) Sheriff- Road Fund/ Other County Fiscal Year Coroner Flood Control Departments TOTAL 1994/1995 569,707 480,818 606,446 1,656,971 1995/1996 531,811 352,975 541,230 1,426,016 1996/1997 401,206 928,890 1,328,303 2,658,399 1997/1998 1,644,437 631,409 1,263,249 3,539,095 1998/1999 834,841 462,151 1,493 596 2,790,588 Total 3,982,002 2,856,243 5,232,824 12,071,069 % of Total 33% 24% 43% 100% TABLE 3 - PROGRESS OF VEHICLE REPLACEMENT OVER THE PAST 4 YEARS (FY 96/97 through 98199) # of % of Total General Average Vehicles Vehicles Vehicles Fund ($176K) Mileage of Year >100,000 mi. >100A00 mi. Replaced Replaced GF Replaced_ 96/97 216 28% 174 19 169,984 97/98 196 25% 141 13 143,874 98/99 166 19% 188 17 134,245 99/00 165 17.5% Pending 25 141,858 TABLE 4 - 19981'1999 ACTUAL EXPENDITURES # of Depre- Fleet Depart- Vehicles ciation Salvage Budget menta Total Adds 44 0 0 0 974,890 974,890 % 34% 0% 0% 0% 100% 100% Replace 86 556,076 78,655 126,497 1,054,470 1,815,698 % 66% 31% 4% 7% 58% 100% Total 130 558,076 78,655 126,497 2,029,360 2,790,588 % 20% 3% 4% 73% 100%